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Moody's Investors Service has placed under review for downgrade the ratings of 15 California transit agencies, including $41 million of San Diego Metropolitan Transit System pension obligation bonds.

They are rated Aa3. The bonds are at risk of downgrade by the possibility of losing federal grants. For the 15 state agencies, the grants average about 13% of operating revenue and 40% of funding capacity.

In California, transit unions have asserted that the California Public Employees' Pension Reform Act of 2013 infringes their right to collective bargaining. The U.S. Department of Labor must certify that certain transit employee protections, including the right to collective bargaining, are in place before the Federal Transit Administration can issue a grant.

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