New York's Metropolitan Transportation Authority is no longer on watch list for a possible downgrade of its transportation revenue bonds, Moody's Investors Service said yesterday. The rating agency affirmed the credit's A2 rating and said its outlook was stable.

"The stable outlook reflects Moody's expectation that the MTA will take actions, as it has in the past, to address budget shortfalls that may emerge and balance its operations," Moody's said in a press release. "Near-term challenges include forecast risks due to uncertainty regarding the timing and strength of the region's economic recovery, which could directly affect dedicated revenues as well as operating income generated by system utilization."

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