Atlantic City's bond rating was downgraded once again Wednesday, reflecting the continuing struggles of a seaside town that is straining to recreate itself as its gambling business wanes.

Moody's Investors Service knocked the city's debt down to Ba1—or junk-bond level—citing the city's "weakened tax base, revenue-raising ability and broader economic outlook." It is the second Moody's downgrade for the city in the last nine months.

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