LOS ANGELES— Moody’s Investors Service affirmed the ratings on $6.5 billion of debt issued by 14 California transit agencies and revised their outlooks to stable after the state legislature approved a bill exempting employees at California’s transit agencies from pension reform laws.

U.S. Department of Labor officials were threatening to withhold more than $3 billion of federal aid if the state did not exempt transportation employees from the California Public Employees’ Pension Reform Act of 2013, saying it violates a 1964 federal law that protects the collective bargaining rights of public transportation employees.

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