S&P ratings agency says bankruptcy unlikely in near term for Atlantic City

Associated Press

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 in the near future.

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S&P says recurring long-term solutions are needed to stabilize the city's finances.

Those 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 if short-term measures don't prove successful.

Gov. Chris Christie appointed the emergency manager to help Atlantic City's troubled finances.