Moody's may cut 15 California transit agencies ratings
Aug 14 (Reuters) - Moody's Investors Service said on Wednesday it may cut the rating of 15 California state transit agencies, citing the possibility they may lose federal grants.
Moody's said about $6.5 billion of rated is affected.
The transit unions in California have claimed that the California Public Employees' Pension Reform Act of 2013 (PEPRA) infringes on their right to collective bargaining, resulting in the Department of Labor not certifying various grants to seven rated California transit agencies, which affects $3 billion of federal aid and challenging their finances, the ratings agency said in a statement.
Moody's said the grants of the other California agencies are at risk of a similar delay or decertification.
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