UPDATE 1-S&P revises Atlantic City, NJ outlook to stable from neg

Oct 22 (Reuters) - Standard & Poor's Ratings Services on Monday said it revised Atlantic City, New Jersey's credit outlook to stable from negative, citing its improved financial position.

"The outlook reflects our view that the city has achieved near-term stabilization of its financial position through budget adjustments and the issuance of tax appeal refunding bonds," said S&P credit analyst Andrew Teras in a statement.

The rating agency also affirmed its A-minus general obligation rating and assigned an A-minus rating with a stable outlook to the city's series 2012 tax appeal refunding bonds.

S&P said the ratings reflect the city's adequate reserves, its ongoing challenge to keep its budget structurally balanced, its decreasing property tax base, high unemployment and an economy that relies on a struggling casino gaming market.

Atlantic City has about $220 million of outstanding general obligation debt, s ome o f which is not rated by S&P, a spokesman for the credit rating agency said. That amount includes about $103 million in borrowing that the city council approved in late September.