Tobacco Bonds Holding Their Own, Despite S&P Downgrade

Albanese, Elizabeth
April 2003
Bond Buyer;4/22/2003, Vol. 344 Issue 31619, p3
Trade Publication
Tobacco bonds on April 21, 2003 were still trading at rates in the same range as last week despite a downgrade Friday by Standard & Poor's Corp. of the majority of tobacco-securitized debt. Tobacco bonds were selling yesterday at between 75 cents on the dollar and 85 cents on the dollar, said Michael Marz, a vice chairman at First Southwest Co. That is up from early last week, when the bonds were trading as low as 65 cents on the dollar. Poor's follows actions by Fitch Ratings Inc. and Moody's Investors Service Inc., which both lowered the ratings of tobacco debt by as much as three notches two weeks ago in response to concerns that an Illinois lawsuit might bankrupt Philip Morris USA Inc. That company makes more than half of the total payments currently received by 46 states under the terms of the 1998 Master Settlement Agreement as reimbursement for the cost of caring for patients with tobacco-related illnesses. Fitch announced yesterday that all tobacco debt ratings by that agency remain on rating watch negative, as does the corporate credit for both Altria and its subsidiaries and R.J. Reynolds Tobacco Holdings Inc.


Related Articles

  • Gambling Lawsuit Could Delay West Virginia Agency's Bond Plans. Newman, Emily // Bond Buyer;8/05/2003, Vol. 345 Issue 31692, p3 

    Reports on the possibility of delay in a potential bond sale by West Virginia's Economic Development Grant Committee following the decision of a lawyer to refile a lawsuit challenging the source of debt service on bonds. Allegations raised by the lawyer in the lawsuit; Possible consequences of...

  • Mezzanine Is Front Row at Market Revival. R. K. // Bank Loan Report;6/14/2010, Vol. 25 Issue 24, p1 

    The article reports on the statement made by several market participant which asserts that buyout financing will see a mezzanine revival due to the increasingly expensive bonds and loans. It mentions that the demand for mezzanine debt have already been on the rise especially among issuers. It...

  • Bridge Loans Launch Over Troubled Waters. R. K. // High Yield Report;3/31/2008, Vol. 19 Issue 13, p1 

    The article reports that issuers are turning to bridge loans as a source of cheap financing in the U.S. It states that the country's bridge loan volume has reached $14.98 billion through 10 issues since the start of 2007. Bridge loans, short-term loans traditionally used by companies to meet...

  • Triple-A Rated Columbus to Float $275M in Mixed Limited, Unlimited GO Offering. Carvlin, Elizabeth // Bond Buyer;12/1/2005, Vol. 354 Issue 32269, p3 

    The article reports on the move of Columbus, Illinois to join the market for an annual bond sale with 275 million dollar offering mixed with limited and unlimited tax general obligation bonds to fund on-going capital projects in the triple-A rated Ohio City in the financial services industry in...

  • Municipal Issuers Inch Closer to Annual Record. Johnson, Matthew // Bond Buyer;12/1/2005, Vol. 354 Issue 32269, p1 

    The article reports on the total amount of long-term debt issued by the municipal market issuer Thomson Financial reflected on its annual issuance record as of November 2005 in the financial services industry in the U.S. The total sold amount 34.02 billion dollars via 879 new issues. The...

  • S&P: Euro Cos. Need To Refinance $3.9 Trillion By 2012. Kellerhals, Richard // High Yield Report;6/29/2009, Vol. 20 Issue 26, p23 

    The article reports on the amount of debt maturing through the end of 2012 being faced by companies in Europe according to Standard & Poor's (S&P). Analysts from S&P said that refinancing risk is a big challenge for European borrowers, especially in the financial sector. The analysts added that...

  • Participation Financing: A Comparison of the Characteristics of Convertible Debt and Straight Bonds Issued in Conjunction with Warrants. Long, Michael S.; Sefcik, Stephan E. // FM: The Journal of the Financial Management Association;Autumn1990, Vol. 19 Issue 3, p23 

    This article compares convertible debt and straight bonds issued in conjunction with warrants. Convertible debt and straight bonds issued in conjunction with warrants share certain distinctive characteristics. However, in looking closer at the offeror, differences become apparent. Firms that...

  • BOND NEWS.  // Leveraged Finance News;4/28/2014, Vol. 4 Issue 17, p2 

    The article informs that on April 23, 2014 French cable and telecom service provider Numericable set a new record for the largest high yield bond deal by having a five-part, dual-currency bond deal worth 13.58 billion dollar. It is also noted that Numericable issued a total of 21.9 billion...

  • Munis Unchanged to Weaker on Treasury Losses. Scarchilli, Michael // Bond Buyer;10/31/2008, Vol. 366 Issue 32994, p2 

    The article provides updates concerning the performance of the municipal bond market in the U.S. on October 30, 3008. It states that municipal bonds continue to experience declined revenue and weak trading brought by the losses experienced by the Treasury Department on the said date. Information...


Read the Article


Sign out of this library

Other Topics