Bondholders would be unaffected if the NY State govt shuts down for the first time ever (That does not give me wood if own the debt)

Bondholders would be unaffected if the NY State govt shuts down for the first time ever, because debt service is fully appropriated for fiscal 2011, Moody's said late Thu. Meanwhile, "credit impact on the state government, local governments, the MTA, and higher education would be mixed and mostly modest," Moody's says, adding it depends on the length of the disruption. New York's governor and legislature are still negotiating the budget for the year that began April 1.(Romy.varghese@dowjones.com)