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Jump to full article: Business Wire, 2009-06-25
Intro: Fitch Ratings affirms four and downgrades one class of tobacco settlement asset-backed bonds from California County Tobacco Securitization Agency (Stanislaus County Tobacco Asset Securitization Authority) series 2002 and 2006, as follows:
. . .
The various actions are based on the level of stress each class is able to withstand as indicated by Fitch's new breakeven cash flow model. The model indicates, for each class of bonds, the level of the annual Master Settlement Agreement (MSA) payment percent change the trust would be able to sustain and still pay the bond in full by the legal final date. The base case 'B' corresponds to a 1% increase in the MSA payment received by the trust every year. The 'BBB' category corresponds to an annual MSA payment decline of 1.25%. The cash flow model accounts for the amount of the latest reported MSA payment that the transaction has received, the capital structure, the reserve account, and the bonds' legal final dates.
The bond payments are also tied to the tobacco companies making MSA payments.
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