CHICAGO – Positive cash flow developments from tobacco arbitration awards and settlement agreements this year may stave off the projected default dates for tobacco bonds issued by at least four states, but they are still likely, municipal bond analyst Richard Larkin warned in a report Thursday.

The new report from Larkin, director of credit analysis at Herbert J. Sims & Co., takes into consideration the latest arbitration rulings and settlement agreements reached with the major tobacco companies in a dispute over the enforcement of provisions in the 1998 Master Settlement Agreement with most states.

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