Moody's Investors Service slashed Atlantic City's credit rating six notches deeper into junk territory on Friday, a day after New Jersey Governor Chris Christie appointed an emergency manager with a mandate to consider a debt restructuring, Reuters reported on Friday. Atlantic City has about $344 million of long-term debt outstanding. Moody's dropped the city's general obligation rating to Caa1, down from Ba1, indicating that the credit rating agency thinks there is a substantial risk of default over the next five years. The order from Christie to consider a restructuring also marks a "rapid, dramatic" change from the usually strong oversight New Jersey provides its local governments, including the requirement that they pay their bond debts, Moody's said.
