S&P Rates N.Y. Tobacco AA-Minus

McDonald, Michael
June 2003
Bond Buyer;6/4/2003, Vol. 344 Issue 31649, p1
Trade Publication
Poor's yesterday rated New York's Tobacco Settlement Financing Corp.'s upcoming $2.3 billion bond sale AA-minus, trating the proposed deal as state appropriation debt while not counting it against New York's already strained debt limit. that they are appropriation bonds and not tobacco bonds, even though they will be paid for using the proceeds from the historic 1998 national tobacco settlement. Instead, the rating agency said New York's precarious financial position is already reflected in the negative outlook it assigned to the state's credit rating last month, and which was also assigned to the tobacco deal. She said that while the state plans to appropriate the debt service for the tobacco bonds every year, the appropriation would not be funded unless annual payments from tobacco companies were insufficient to cover the debt service.


Related Articles

  • High Court Deals Another Blow To Oklahoma's Bond Program. Williamson, Richard // Bond Buyer;6/4/2003, Vol. 344 Issue 31649, p1 

    This article reports on the cancellation of the 158 million dollar issue of Oklahoma's bond program that was approved by the Legislature in 2001 for completion of the Capitol dome and other projects, by the state Supreme Court as of June 3, 2003. The Supreme Court passed a ruling in 2002, that...

  • California JPA Deal Taxable Due to Related Swap. McConnell, Alison L. // Bond Buyer;8/22/2006, Vol. 357 Issue 32450, p5 

    The article reports on the assessment of the Internal Revenue Service (IRS) on the revenue bonds sold by the California Statewide Communities Development Authority. IRS has determined that the $35 million of revenue bonds sold by the agency is taxable due to its swap agreement that does not meet...

  • Texas Weighs Raising Cap For Agency. Albanese, Elizabeth // Bond Buyer;05/10/2001, Vol. 336 Issue 31136, p1 

    Reports the proposed amendment by legislatures granting the Texas Veterans Land Board permanent general obligation bonding authority and selling of revenue bonds. Significance of the proposal; Debates on the general obligation authorization; Provision of benefits for veterans by the land board.

  • Ruling on surety bonds is expected. Chandler, Darlene K. // National Underwriter / Life & Health Financial Services;7/5/93, Vol. 97 Issue 27, p25 

    Reports on the expectation by industry sources of a private letter ruling from the Internal Revenue Service (IRS) addressing the use of surety bonds. Executive deferred income insurance arrangement; Agreement by the requesting party with IRS; Intention to diminish the application of Code...

  • IRS: City's Management Contract Not Private Business Use. Barnett, Susanna Duff // Bond Buyer;7/29/2003, Vol. 345 Issue 31687, p5 

    Reports that the Internal Revenue Service has ruled that a management contract between a city water authority and a private entity does not constitute private business use in the U.S., regarding a contract case between a nonprofit corporation created to help a city acquire and finance real...

  • THE BOND BUYER LEGISLATIVE STATUS REPORT.  // Bond Buyer;8/7/2006, Vol. 358 Issue 32439, p26 

    The article presents a list of the status of various legislation in the United States. The list includes the Transportation Equity Act, an amendment to the Internal Revenue Code of 1986 to provide tax-exempt financing of highway projects and rail-truck transfer facilities, the Railroad...

  • Local governments ask for freeze on overturning IRS' private-use rules. Kinnander, Ola // Bond Buyer;3/27/98, Vol. 323 Issue 30360, p6 

    Reports on the efforts of the Public Finance Network, a coalition group of local governments, to urge Representative Bill Archer to introduce a legislation to overturn the Internal Revenue Service's private-use bond rules governing public power. Features of the deregulation proposal by...

  • AXMIN is proceeding with a private placement to raise aggregate gross proceeds of approximately C$ 6.75 million.  // African Business News;3/26/2013, p4 

    The article reports on the move of gold exploration company, AXMIN Inc. to join a binding subscription agreement with Dickson Resources Ltd., a research and information company for its corporate gross proceeds. An overview of the subscription agreement is presented. Terms of conditions on the...

  • Senate Panel to Vote on Extenders Bill Thursday. Hume, Lynn // Bond Buyer;4/2/2014, Vol. 123 Issue 34086, p1 

    The article informs that Ron Wyden, U.S Senate Committee on Finance's chairman, has proposed a bill to extend 47 expired and expiring tax provisions for bonds, governments and Puerto Rico. The Joint Committee on Taxation reveals that expired tax provisions will result in the revenue loss of...


Read the Article


Sign out of this library

Other Topics