Listen to this articleAtlantic City has regained investment-grade status for the first time in more than a decade. On Dec. 30, Moody’s Ratings upgraded the city’s issuer credit rating to Ba1 to Baa3.
The change reflects years of fiscal stabilization following the city’s financial crisis, which led to a state takeover in 2016 — and put the city on the brink of bankruptcy. It also follows an earlier Moody’s upgrade in April 2024.
Moody’s cited Atlantic City‘s strong financial position, including healthy reserves, stable operations, rapid debt reduction and improved long-term obligations.
“This is a testament to my administration, the State of New Jersey, and City Council working together to achieve this powerful vote of confidence in Atlantic City’s financial future,” said Mayor Marty Small Sr.
Last month, Small was found not guilty on all charges related to the alleged abuse of his teenage daughter. He was also recently sworn in for a new four-year term after winning re-election in November.
“Reaching investment-grade status shows how far the Great City of Atlantic City has come since its financial crisis and that we are now operating from a position of strength,” said Small.
A better bet
Atlantic City’s total outstanding debt has fallen to approximately $228 million, down from more than $500 million at its peak. About $71 million of that total is direct city debt.
In recognition of the improved financial standing and significantly reduced debt levels, Moody’s removed all rating outlooks for the city.
📈🎉 INVESTMENT GRADE 🎉📈
Moody’s Ratings has officially upgraded the City of Atlantic City’s credit rating to investment-grade (Baa3) for the first time in more than a decade!
🔗 READ MORE ➡️ https://t.co/68ZPfYazWn pic.twitter.com/RZT23sVYVI
— City of Atlantic City – Government (@AtlanticCityGov) January 5, 2026
The return to investment grade signals to financial markets that Atlantic City is a lower-risk borrower. That can reduce borrowing costs, expand the pool of potential investors, and boost confidence among businesses and developers. Small noted that Atlantic City currently has no immediate need to borrow, but is positioned more favorably for future capital projects if needed.
“Under my watch, investor confidence is at an all-time high because our budget team has been rebuilding Atlantic City the right way, and we intend to protect this progress and remain in the best position possible,” said Small.
Small applauded the city’s financial team and highlighted its focus on long-term stability and strong management practices. He also noted that under his administration, the city has delivered six straight property tax decreases and is working toward a seventh this year.
