Tobacco Decision Under Close Watch

The recent verdict by a jury in the second phase of the Florida tobacco class-action suit ordering defendants to pay a compensatory award of $12.7 million to three sick smokers will have no short-term impact on the ratings on either the tobacco companies involved in the case or the existing tobacco securitizations, but could have long-term ramifications, said sources at Standard & Poor's Ratings Services.

"There's no immediate effect on the ratings of the tobacco securitizations as a result of the recent decision," said Chris Howley associate director at S&P.