Last week's settlement between several tobacco manufacturers and 17 states, the District of Columbia, and Puerto Rico should have a positive impact on cash flows for certain tobacco settlement asset-backed security transactions, according to Fitch Ratings.

Under the "stipulated partial settlement award," $4 billion in disputed payments currently escrowed will be released to the participating states and territories, while original participating manufacturers will receive credits against the future master service agreement payments of those states.

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