Atlantic City, America’s Worst-Rated Town, Stares at Default

Atlantic City, America’s Worst-Rated Town, Stares at Default - WSJ:
"Atlantic City has so little money left that it could miss a $1.8 million bond payment due Sunday, a step that would make it the first New Jersey municipality to default on debt since the Great Depression.
The Jersey Shore gambling destination has endured years of strain as a third of its casinos shut down. But now its cash levels are low enough that bankruptcy is a possibility for the 39,000-population city, according to Mayor Don Guardian.
“We’re down to a couple million dollars on any given day,” the mayor said in an interview.
Once prized as a vacation destination because of its giant casinos and boardwalk, Atlantic City is in this position because of a declining economy and mounting debt. 
Its predicament is more severe than most distressed U.S. municipalities because it has the worst credit rating of any American city.
...As recently as a year ago, bondholders purchased about $50 million in Atlantic City bonds backed by state aid payments..."