Moody’s Restores Atlantic City to Investment-Grade Status for First Time in Over a Decade
Credit upgrade reflects debt reduction, fiscal discipline and years of financial recovery under Small Administration
ATLANTIC CITY — Moody’s Ratings has upgraded Atlantic City’s issuer credit rating to investment-grade status for the first time in more than 10 years, according to city officials.
Mayor Marty Small Sr., made the announcement on Monday, January 5, 2026 during a news conference at City Hall. The upgrade from Ba1 to Baa3, marks a significant milestone in the city’s long-term financial recovery following years of fiscal distress, high debt levels, and state oversight. The restoration to investment-grade status signals to financial markets that Atlantic City is now considered a lower-risk borrower.
“This is a powerful vote of confidence in Atlantic City’s financial future,” Small said during the news conference. “It shows how far we have come since the city’s financial crisis and that we are now operating from a position of strength.”
Moody’s cited Atlantic City’s improved financial position, including healthy reserves, stable operations, and rapid debt reduction, as key reasons for the upgrade. The agency also removed all rating outlooks for the city, signaling confidence in its continued stability.
Mark Tyler
Atlantic City currently carries approximately $228 million in outstanding debt, down from more than $500 million at its peak. Only about $71 million of that total represents direct city-issued debt, according to city officials.
The upgrade follows a prior improvement by Moody’s in April 2024, when the city’s issuer rating was raised from Ba2 to Ba1. The latest move elevates Atlantic City fully into investment-grade territory.
Mark Tyler
Although the city does not currently plan to borrow, officials say the higher rating strengthens Atlantic City’s financial standing by lowering potential borrowing costs, expanding the pool of investors, and boosting confidence among businesses and developers considering projects in the city.
Moody’s also pointed to management practices and long-term financial planning as factors in its decision. Mayor Small credited the city’s financial leadership team — Business Administrator Anthony Swan, Chief Financial Officer Toro Aboderin, and City Auditor Leon Costello — for implementing disciplined budgeting and debt reduction strategies.
Under the Small Administration, Atlantic City has delivered six consecutive municipal tax decreases heading into 2026 and is working toward a seventh this year, officials said.
Mark Tyler
“This rating reflects years of responsible fiscal management and a commitment to doing things the right way,” Small said. “We intend to protect this progress and continue moving Atlantic City forward.”
The news conference in the mayor’s office at City Hall with city officials and members of City Council in attendance.
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