Moody's eyes Mass Turnpike rating, swap accord

NEW YORK, June 30 (Reuters) - Moody's Investors Service on Tuesday said it is evaluating its ratings for the Massachusetts Turnpike Authority in the wake of a new law that abolishes the authority and makes the state transportation authority its "successor."

Moody's in a statement said the rating outlook on the Massachusetts Turnpike Authority's Baa2 senior lien bonds and its Baa3 subordinated lien revenue bonds remains developing.

The law becomes effective Nov. 1, 2009.

Moody's added it is reviewing the impact of the downgrade of bond insurer Ambac (ABK.N) on the swap agreement between Masspike and UBS (UBSN.VX). The swaps value was estimated at a negative as of June 29 and legislation that allows Massachusetts to negotiate over replacing Ambac as a guarantor in the swap expires on June 30, Moody's noted. (Reporting by Caryn Trokie; Editing by Padraic Cassidy)