Many of the transit issuers in lease-back deals that face potentially huge termination fees because their guarantors' ratings have been downgraded have lowered their exposure to credit risks by unwinding or restructuring the transaction agreements, Moody's Investors Service found.

The rating agency detailed its findings in a recently released report that identified 25 transit agencies that participated in sell-in/lease-out (SILO) or lease-in/lease-out (LILO) transactions and provided updates on the status of these deals.

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