Moody's: A.C. emergency manager a 'paradigm shift' for New Jersey
A spokesman for Gov. Christie on Tuesday declined to comment on a Moody's Investors Services report suggesting that the appointment of an emergency manager is a credit negative not just for Atlantic City, but also for other financially troubled municipalities in New Jersey, such as Newark and Paterson.
A spokesman for Gov. Christie on Tuesday declined to comment on a Moody's Investors Services report suggesting that the appointment of an emergency manager is a credit negative not just for Atlantic City, but also for other financially troubled municipalities in New Jersey, such as Newark and Paterson.
Moody's said Tuesday it expected New Jersey to continue supporting municipalities with moderate financial problems, but said the appointment of the emergency manager for Atlantic City, as well as a consultant with expertise in municipal bankruptcy, "signals a paradigm shift in the state's tradition of support for its municipalities."
No New Jersey municipalities have defaulted on general obligation debt since 1970, according to Moody's. Camden filed for bankruptcy protection in 1999 without the required state approval but withdrew the petition after the state provided $62 million in aid, Moody's said.
Meanwhile, Kevyn Orr, the consultant appointed by Christie, said in a Detroit appearance that Atlantic City's "problems are manageable," according to the Detroit News.
- Harold Brubaker and Amy S. Rosenberg