Casino Reinvestment Development Auth, N.J., 2004 Cut to Baa1 by Moody's

NEW YORK - Moody's Investors Service has downgraded to Baa1 from A3 the Casino Reinvestment Development Authority, N.J.'s $75 million hotel room fee revenue bonds, Series 2004.

The bonds are secured by a senior lien on a $3 fee imposed on each occupied hotel room (paid and complimentary) each night in the 12 Atlantic City casinos.

The downgrade to Baa1 ratings primarily reflects a narrow and deteriorating taxable base of the 12 Atlantic City casinos, which have experienced significant declines in gross revenues.

The Baa1 rating also reflects the lack of an ability to raise the fee, relatively satisfactory security provisions and adequate coverage currently provided by the revenue stream.