Tax-allocation bonds tied to California’s former redevelopment agencies were cut to junk by Moody’s Investors Service, which cited the uncertainty of cash flow to make payments on $11.6 billion in debt.

All so-called TABs rated Baa3 or above were downgraded to Ba1, one step below investment grade, and are under review for a ratings withdrawal, Moody’s said in a report.

Governor Jerry Brown and lawmakers eliminated redevelopment agencies Feb. 1 and directed their assets toward public education. Cities and counties assumed responsibility for most redevelopment debt.

The mechanics of the legislation that dissolved the agencies left the potential for legal and political disputes on the correct procedure of distributing revenue, Moody’s said.