New Jersey's state takeover of Atlantic City finances is a credit positive for the distressed gambling hub because it will likely eliminate any threat of a default through 2017, according to Moody's Investors Service.

In a report published Monday, Moody's analyst Douglas Goldmacher noted that Tim Cunningham, director of New Jersey's Division of Local Government Services, has said he intends to prevent any default and is willing to go to the state treasury for assistance if necessary to pay debt service. Atlantic City next owes $2.3 million in debt service on Dec. 1 followed by a $4.8 million payment due Dec. 15.

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