Moody's Investor Services on Thursday warned the Metropolitan Transportation Authority could face a downgrade for both its transportation revenue bond and BAN ratings.
The report from Moody's said action in the coming weeks will be crucial for the MTA, which is seeking a $4 billion bailout amid a sharp decline in ridership during the coronavirus pandemic.
Moody's in the coming weeks will be watching for emerging budget balancing efforts, the type and timing of both political and financial support from the local, state and federal governments, the MTA's liquidity profile and the market conditions.
"The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets," Moody's wrote in its report. "The combined credit effects of these developments are unprecedented."