The recent passage of a Florida bill sheltering tobacco companies from the likelihood of posting an extremely expensive bond to appeal judgement in the landmark tobacco class-action suit could have a beneficial effect on tobacco securitizations, experts say.

"We are keeping a watch on the legislative proposals currently pending before a number of state legislatures," said Chris Howley, an associate director at Standard and Poor's Ratings Services. "And to the extent that they would prevent the posting of a large bond, then that could benefit the securitizations to the extent that prevents the interruptions of the cashflows flowing from the participating manufacturers."

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