The Latest: Moody's Downgrades Atlantic City Debt Again
TRENTON, N.J. (AP) — The Latest on legislation to allow New Jersey to take over Atlantic City's government (all times local):
1:50 p.m.
A ratings agency has downgraded Atlantic City's low-rated debt once again.
Moody's cited the "ongoing political stalemate" in the statehouse and a possible default within the next year.
A measure to allow the state to take control of the city's finances is stuck in the Assembly. Democratic Speaker Vincent Prieto has refused to bring it up for a vote, saying it gives Republican Gov. Chris Christie too much power to cancel collective bargaining rights.
Senate President Steve Sweeney and Christie agree that the measure allowing the state to run the city's government is the best way to rescue the city,
Moody's warned that it expects bondholders to lose up to 35 percent of their principal because of the city's large structural deficit.
1:25 p.m.
Assembly Speaker Vincent Prieto is calling on Senate President Steve Sweeney to change legislation allowing the Christie administration to takeover Atlantic City's government.
Prieto wrote Monday to his Assembly Democratic colleagues that collective bargaining rights, which could be canceled under the legislation, should not be on the chopping block.
Sweeney and Gov. Chris Christie agree that the measure allowing the state to run the city's government is the best way to rescue the city, which faces financial insolvency later this week.
Prieto has objected that the bill unfairly gives Christie the authority to end union contracts.
Christie is holding a news conference later on Monday.
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