Atlantic City rating sparkles in junk bond territory anew

Atlantic City is turning into a precious gem in the junk bond territory.

International credit debt watcher S&P Global Ratings has raised Atlantic City’s debt one notch to CCC-plus from CCC, with a stable outlook.

The firm cited the improved finances and timely debt service payments of the once beleaguered New Jersey gambling hub as the reason to elevate its rating a notch higher. The CCC-plus rating is considered by many as a better level of junk.

On the near term, the ratings agency doesn’t see Atlantic City defaulting on its debts especially now that the state has increased its intervention.