Notwithstanding the recent $145 billion punitive damage award against the tobacco industry in the Engle class-action suit, Standard & Poor's Ratings Services recently affirmed its ratings on all tobacco securitization bonds.

In a press release, the rating agency stated that company-specific ratings were not directly linked to the specific ratings on the bonds. However, since industry volume - which is determined by the number of domestic cigarette shipments - forms the basis for Master Settlement Agreement (MSA) payments, a linkage is formed between the ratings on the bonds and the overall performance of the industry.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.