Tobacco Bonds on Watch

Albanese, Elizabeth
March 2003
Bond Buyer;3/27/2003, Vol. 343 Issue 31802, p1
Trade Publication
Fitch Ratings Inc. placed approximately 18 billion dollars of tobacco bonds on rating watch negative on March 26, 2003, after an Illinois judge last week ordered the nation's largest tobacco manufacturer, Altria Group Inc., to pay a 12 billion dollar appeal bond in a lawsuit brought by smokers of light cigarettes. Fitch has rated most of the approximately 19.85 billion dollars of tobacco bonds issued to date, giving the debt its A-plus rating based on coverage levels and the strength of Altria's A rating. Fitch managing director Kevin Duignan said his agency considers the strength of the four major tobacco manufacturers — Philip Morris USA Inc., RJR Tobacco Holdings, Lorillard Tobacco Co. and Brown & Williamson — that make payments to 46 states under the 1998 Master Settlement Agreement a key factor in the viability of tobacco bonds. Philip Morris officials have said the bond amount is so high the firm might have to declare bankruptcy.


Related Articles

  • Tobacco settlement deals' link to industry always a hot topic. M.G. // Asset Securitization Report;5/12/2003, Vol. 3 Issue 19, p12 

    Reports that Fitch Ratings Inc. downgraded its rating for the tobacco bond market in the U.S. in the second week of May 2003. Fitch's below-investment-grade rating of R.J. Reynolds; Accelerated decline in operating earnings, volumes and revenues of the tobacco industry in the first quarter of 2003.

  • Fitch Lowers $18B in Tobacco Debt Again. Finestone, Deborah // Bond Buyer;5/7/2003, Vol. 344 Issue 31630, p1 

    Fitch Ratings Inc. on May 7 2003, downgraded for the second time in a month all of its outstanding tobacco settlement securitization ratings, following its simultaneous two-notch downgrade of tobacco industry corporate ratings to BBB-minus. All ratings are removed from Rating Watch Negative...

  • News In Brief: Fitch Downgrades Illinois Hospital. Wisniewski, Mary // Bond Buyer;10/29/2001, Vol. 338 Issue 31253, p2 

    Reports on downgrade in rating of Illinois Health Facilities Authority revenue refunding bonds issued for West Suburban Hospital Medical Center in Illinois as per rating by Fitch Ratings Inc. Interpretation for downgrade in the rating; Effect of downgrade in the ratings on Medicare reimbursement.

  • Port Huron, Mich., Lowered to A by Fitch.  // Bond Buyer;10/16/2013, Vol. 122 Issue 33996, p1 

    The article informs that the bond credit rating agency Fitch Ratings Ltd. has downgraded the ratings of the municipal bonds issued for Port Huron in Michigan to A from A-plus. It mentions that the rating outlook for the municipal bonds is stable which covers the general obligation limited tax...

  • ALASKA: North Star Bonds Affirmed. Saskal, Rich // Bond Buyer;1/19/2007, Vol. 359 Issue 32550, p9 

    The article reports on Fitch Ratings' affirmation of its A-plus rating for the Fairbanks North Star Borough general obligation bonds in Alaska. The ratings agency has also assigned the A-plus rating to $12 million for new school general obligation bonds and $10.7 million refunding. The article...

  • MARYLAND: Carroll County GOs Stay AA+. Sanchez, Humberto // Bond Buyer;11/12/2007, Vol. 362 Issue 32752, p9 

    The article reports that Fitch Ratings Ltd. has assigned a AA-plus rating and a stable outlook to $37.2 million of general obligation bonds and refunding bonds that Carroll County, Maryland plans to issue in a competitive deal. It states that the $37.2 million includes $6.7 million for refunding...

  • Market Post: Dealers Unload Balances as JeffCo Prices for Retail. Riggs, Taylor // Bond Buyer;11/18/2013, Vol. 122 Issue 34013, p1 

    The article informs that dealers in the U.S. have unloaded balances left over from the new bond issues priced in November 2013, as half the trading volume came from dealers selling bonds to customers. It mentions that trading of all Puerto Rico trading activity was down by 58 percent from the...

  • Fitch: Stable Outlook on BBB-Rated Debt Sold for Chicago Dorm Project. Shields, Yvette // Bond Buyer;7/27/2006, Vol. 357 Issue 32432, p4 

    The article reports on Fitch Ratings' decision to revise its outlook to stable from negative for the rating on $151 million of debt issued for the University Center Project in Chicago, Illinois. The bonds were sold through the former Illinois Educational Facilities Authority on behalf of the...

  • A-Plus Building Bonds. Saskal, Rich // Bond Buyer;8/19/2005, Vol. 353 Issue 32200, p31 

    Reports on Fitch Ratings' issuance of an underlying A-plus rating to a forthcoming issue by the Idaho State Building Authority.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics