Moody’s: Atlantic City could default without drastic action

A ratings agency has warned that Atlantic City could face default as early as April "without drastic action" from the state.

Moody's said in an analysis released Wednesday that Atlantic City will run out of money in the next few weeks if two measures aren't approved by lawmakers. Moody's says that could lead to bankruptcy.

The first bill would strip Atlantic City of most of its decision-making power and give the state the right to break contracts and sell off city assets to help get Atlantic City's troubled finances under control. The second would allow casinos to make payments in lieu of taxes.

They are backed by Senate President Steve Sweeney Gov. Chris Christie. Assembly Speaker Vincent Prieto says they need to be changed to ensure the state can't unilaterally cancel public employee contracts.

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