Moody’s takes rating actions on 35 tobacco bond issues

CHICAGO, Dec 21 (BestGrowthStock) – Moody’s Investors Service on
Tuesday took various rating actions on 35 tobacco
securitizations, citing implications from a recent court ruling
and a drop in tobacco consumption.

The rating agency said an October federal appellate court
ruling upheld a master settlement agreement reached in 1998
between 46 states and U.S. tobacco companies and that allowed
Moody’s to take all outstanding tobacco bonds it rates off a
review “with direction uncertain.” However, the drop in
consumption led Moody’s to place several tobacco bond issues on
review for a possible rating downgrade.

Others were placed on review for possible upgrades due to
their strong cash position and low leverage, Moody’s said.

(Reporting by Karen Pierog, Editing by Chizu Nomiyama)

Moody’s takes rating actions on 35 tobacco bond issues