Atlantic City Mayor Don Guardian said the distressed gaming hub will make its bond payments due Monday, rebutting a report from Moody's Investors Service that said default was likely.
"We're absolutely making the bond payment on Monday," Guardian said by telephone.
Moody's said Wednesday that the $3.4 million payment was in doubt because the state and city were still working out details of a bridge loan. Guardian said even without the funds, the city would meet its obligations. Agreement is close on the conditions of the loan, which is around $73 million to $74 million, he said.
State lawmakers had approved the loan as part of a rescue package in May that calls for the community to come up with a fiscal plan by Nov. 3 or fall under New Jersey's control.
Investors didn't appear to be flustered by the Moody's report. A bond due February 2022 that pays interest on Monday traded with a yield of 11.6 percent, in line with the average of 11.2 percent for the past 10 days, data compiled by Bloomberg show.
