NEW YORK Dec 3 Moody's Investors Service said
on Monday that a plan by the New York Metropolitan
Transportation Authority to add up to $4.8 billion in short-term
recovery notes over the next two years is credit negative.
The MTA, which currently has $32 billion of debt outstanding
and plans for more capital borrowing over the next few years,
said last week it may hike short-term borrowing to help pay for
repairs after superstorm Sandy.
"The MTA's recent focus on reducing operating costs has
produced significant recurring savings, but additional savings
will be challenging because a large portion of its costs are
fixed for labor, benefits and debt service," Moody's said.
"Failure to achieve further cost reductions or other savings
would make it more difficult to absorb the planned increase in
debt," the ratings agency concluded.