NEW YORK - Moody's Investors Service has placed the ratings on Battery Park City Authority's Senior Revenue Bonds on watch for possible downgrade, including the Aaa rating on the Senior Lien Bonds (approximately $466 million outstanding) and the Aa3 rating on the Junior Lien Revenue Bonds (approximately $621 million outstanding; total debt outstanding approximately $1.092 billion). This action was taken as result of the agreement recently announced by Battery Park City Authority (BPCA) and the City of New York to transfer, to the extent available over time, a total of $861 million of residual funds from the Authority to the City, the State and a City agency, including a current transfer of available funds (approximately $267.5 million) with the balance to be transferred annually to the extent available.

BPCA is a public benefit corporation that owns Battery Park City, a large mixed office and residential community located near the Southern tip of Manhattan in New York City. The Bonds are secured by a pledge of BPCA's revenues consisting of ground lease payments on the diverse and high-quality portfolio of office and residential properties that comprise Battery Park City, as well as by a debt service reserve fund.

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