August 27, 2014 / 9:21 PM / 3 years ago

UPDATE 1-Moody's may cut N.J. casino parking bonds to junk

(Adds additional bonds placed on review for downgrade)

Aug 27 (Reuters) - Moody’s Investors Service could downgrade to junk its rating on $195 million of New Jersey casino parking revenue bonds issued in 2005 because of a spate of Atlantic City casino closures, the credit ratings agency warned on Wednesday.

The Casino Reinvestment Development Authority bonds are rated Baa3 - one notch above non-investment grade - with a negative outlook. Moody’s expects to resolve its review in the next 30 to 60 days. The bonds are backed by a portion of casino parking fees and a gaming revenue tax.

By the end of September, four Atlantic City casinos are expected to have closed this year, in part because of increased competition for gamblers from neighboring states.

Moody’s also placed on negative review its Baa2 rating on the Casino Reinvestment Development Authority’s $66 million of hotel fee revenue bonds on Wednesday. (Reporting by Hilary Russ; Editing by Lisa Shumaker)

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