- Associated Press - Thursday, August 11, 2016

ATLANTIC CITY, N.J. (AP) - A credit ratings agency says that a state loan should give Atlantic City the time it needs to draft a five-year plan to try to avoid a state takeover.

Moody’s said in a report Thursday that a $73 million state loan is a positive for the city’s junk credit rating.

The agency said that there was a high probability the city would default on its debt in the next few months without the loan.

Moody’s also warned that the planned Trump Taj Mahal closure could further cut the amount of tax money coming to the financially struggling seaside resort.

Moody’s says that the city’s condition remains dire because of its dependence on the shrinking casino industry.

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