Standard & Poor’s stated that cigarette consumption is the most significant factor in determining the credit strength of tobacco securitizations.

Moreover, as part of its updated methodology as of October 2011, the rating agency is now applying a higher rate of consumption decline for each additional year. The rating agency’s assumed rate of tobacco use decline increases at each rating level above ‘B.’

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.