S&P: Atlantic City bankruptcy unlikely in near term
ATLANTIC CITY, N.J. (AP) -- Wall Street ratings agency Standard & Poors says a bankruptcy filing for Atlantic City is unlikely in the near term.
The agency says an initial plan by state-appointed emergency manager Kevin Lavin provides sufficient recommendations to keep the city from declaring bankruptcy anytime soon.
Lavin's report "reflects several possible solutions to the city's fiscal 2015 deficit that are both recurring and one-time in nature," analyst Lindsay Wilhelm wrote. "Ultimately, for the city to stabilize and improve, it must implement recurring and ongoing measures. However, short-term solutions can provide a financial cushion in operations while the city makes long-term adjustments."
The recommendations include drastic spending cuts and layoffs for Atlantic City's municipal government, as well as deferring some pension and other payments.
The agency cautions that a bankruptcy still could occur. It said it sees "some risk with short-term solutions, which, if not successful, could introduce bankruptcy as a potential course of action."
Gov. Chris Christie appointed the emergency manager in January to help Atlantic City's troubled finances. A second report is due in June.
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