New York, August 27, 2014 -- Moody's Investors Service has placed the Baa3 negative special tax rating on the Casino Reinvestment Development Authority's (NJ) $195 million Parking Fee and Atlantic City Fund Revenue Bonds, Series 2005 under review for possible downgrade. The bonds are secured by three revenue streams: 1) a senior lien on $2.50 of a statutory $3 fee levied on vehicles parking in Atlantic City casinos as established by state statute; 2) an additional contractual casino parking fee of $1 levied on vehicles parking at the casinos pursuant to Parking Fee Agreements; and 3) Investment Alternative Tax (IAT) obligations, a 1.25% tax on gross gaming revenues, pledged to secure the bonds from January 1, 2011 through December 31, 2018. IAT revenue trends mirror gaming revenue in the city while parking revenues have historically seen more modest declines. A debt service reserve fund on this series of bonds is cash funded at maximum annual debt service.
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