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KBRA Affirms BBB+ Rating for Casino Reinvestment Development Authority, NJ Luxury Tax Revenue Bonds

23 Jul 2026   |   New York

Contacts

KBRA affirms the long-term rating of BBB+ with a Stable Outlook for the Casino Reinvestment Development Authority, NJ Luxury Tax Revenue Bonds.

Key Credit Considerations

The rating is affirmed because of the following key credit considerations:

Credit Positives

  • Pledged revenues experienced favorable growth in the years preceding the pandemic and have recovered to levels providing adequate debt service coverage.
  • Clearly defined revenue pledge and cash-funded debt service reserve fund.

Credit Challenges

  • Pledged revenues are limited in scope and sensitive to the performance of the gaming, entertainment, and tourism sectors, which are cyclical and subject to evolving competitive pressures. Pledged revenues are also highly seasonal and remain susceptible to event risk.
  • Competition from regional casino operators and online gaming and wagering could weigh on pledged revenue performance over time.

Rating Sensitivities

For Upgrade

  • Although an upgrade is not anticipated, significant growth and diversification in the taxable base over time could lead to upward rating movement.

For Downgrade

  • A secular decline in luxury tax revenues that results in significantly narrower debt service coverage.
  • Additional borrowing that results in significantly lower debt service coverage.

To access ratings and relevant documents, click here.

Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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