March 9, 2016 / 7:53 PM / a year ago

BRIEF-Moody's says Atlantic City, NJ risks default, possible bankruptcy

March 9 (Reuters) - Moody's:

* Atlantic City, NJ, risks default, possible bankruptcy without rescue legislation

* Without drastic action, Atlantic City could suffer a debt service default as early as April or May

* If Atlantic City releases restricted cash or fails to pay operating expenses, it may be able to avoid debt service default for another quarter

* While debate on bills continues, Moody's identified 3 potential scenarios that would have positive/negative effect on Atlantic City's credit quality

* Factoring in full $190 million in tax refund liabilities, we project a budget deficit of $102 million in fiscal 2016 for Atlantic City

* Under all scenarios, Atlantic City's financial position will remain vulnerable to external factors

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