Moody's Investors Service has taken action on 35 payment securitizations owed to tobacco bond issuers pursuant to the Master Settlement Agreement between domestic tobacco manufacturers and 46 states and territories.
The actions are being taken as a result of the adjudication of the Freedom Holdings case, which reduced uncertainty about certain legal risks to the cash flows from these transactions.
The specific actions address Moody's views on the reduced legal uncertainty to the MSA cash flows due to the Freedom Holdings decision, the impact of continued declines in cigarette consumption, and the outlook for future declines.
Moody's placed 67 classes in 19 transactions under review for possible downgrade.
