Standard & Poor's has revised the outlook to stable from negative and affirmed the A-minus rating on Atlantic City, N.J.'s general obligation debt.

"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 credit analyst Andrew Teras in a report.

The rating reflects the city's ongoing challenge to maintain a structurally balanced budget, concentrated and decreasing property tax base and an economy that relies on the city's struggling casino gambling market, the report said.

"The city is taking action to address the impact of casino property tax appeals on its finances, but we believe uncertainties remain surrounding its ability to maintain a structurally balanced budget," the report said.

About $150 million in bonds have been issued to finance settlement agreements for appeals dating back as far as 2006, including a future sale of Series 2012 tax appeal refunding bonds.

S&P does not expect the outlook to change within a two-year horizon.

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