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By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

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Related Issuers
Alabama 21 Century Authority, Series 2001
Alabama 21st Century Authority, Series 2000
Arkansas Development Finance Authority, Tobacco Settlement Revenue Bonds, Series 2001 (Biosciences Institutes and College of Public Health Projects)
Badger Tobacco Asset Securitization Corporation
California Statewide Financing Authority (Pooled Tobacco Securitization Program) , Series 2002
Children's Trust, Series 2002
District of Columbia Tobacco Settlement Financing Corporation, Series 2001
Educational Enhancement Funding Corporation - Tobacco Settlement Asset-Backed Bonds, Series 2002A and 2002B
Erie Tobacco Asset Securitization Corporation, Series 2000A and 2000B
Golden State Tobacco Securitization Corporation, (2003 Indenture)
Guam Economic Development Authority, Series 2001A and 2001B
Legal Settlement Resecuritization Trust 2003-A
Legal Settlement Trust 2001-A
Legal Settlement Trust 2002-A
Litigation Settlement Monetized Fee Trust III
Litigation Settlement Monetized Fee Trust IV
Litigation Settlement Monetized Fee Trust V
Litigation Settlement Monetized Fee Trust, Series 2001-1
Monroe Tobacco Asset Securitization Corporation, Series 2000
Nassau County Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed Bonds, Series A
New York Counties Tobacco Trust I, Series 2000
New York Counties Tobacco Trust II, Series 2001
Niagara Tobacco Asset Securitization Corporation, Series 2000
Northern Tobacco Securitization Corporation, Series 2000
Northern Tobacco Securitization Corporation, Series 2001
Rensselaer Tobacco Asset Securitization Corporation, Series A
Rockland Tobacco Asset Securitization Corporation, Series 2001
The California County Tobacco Securitization Agency (Placer County) - Gold Country Settlement Funding Corporation, Series 2002
The Children's Trust Fund, Series 2000
Tobacco Securitization Authority of Northern California, Series 2001A and Series 2001B
Tobacco Securitization Authority of Southern California (San Diego)
Tobacco Settlement Authority (Iowa); Series 2001A and Series 2001B
Tobacco Settlement Authority (Washington), Series 2002
Tobacco Settlement Financing Corporation (New Jersey), Series 2002
Tobacco Settlement Financing Corporation (New Jersey), Series 2003
Tobacco Settlement Financing Corporation (Virgin Islands), Series 2001
Tobacco Settlement Financing Corporation (Virginia) - 2003 Indenture
Tobacco Settlement Financing Corporation, Series 2001A and 2001B
Tobacco Settlement Revenue Management Authority, Series 2001A and Series 2001B
TSASC, Inc. - Tobacco Flexible Amortization Bonds (Program Bonds First Issuance)
Ulster Tobacco Asset Securitization Corporation, Series 2001
Westchester Tobacco Asset Securitization Corporation Tobacco Settlement Asset-Backed B...eries 1999
Rating Action:

MOODY'S TO REVIEW TOBACCO SETTLEMENT ABS DEALS FOLLOWING REVIEW FOR POSSIBLE DOWNGRADE OF ALTRIA AND PHILIP MORRIS

27 Mar 2003
MOODY'S TO REVIEW TOBACCO SETTLEMENT ABS DEALS FOLLOWING REVIEW FOR POSSIBLE DOWNGRADE OF ALTRIA AND PHILIP MORRIS

Approximately $19 billion of Asset-Backed Securities Affected.

New York, March 27, 2003 -- Moody's Investors Service announced today that it will review its ratings on all outstanding tobacco settlement receivables securitizations. This affects both the tobacco settlement receivables and legal fee settlement transactions. The rating action follows Moody's review of Altria Group Inc. ("Altria"), Kraft Foods Inc. and Philip Morris Capital Corp. for possible downgrade on March 24, 2003. Altria is a holding company, controlling 100% of Philip Morris International, Philip Morris USA and Philip Morris Capital Corp. ("Philip Morris"), and 84% of Kraft Foods Inc.

Moody's ratings review of Altria and Philip Morris was prompted, in turn, by the March 21 verdict of an Illinois Third Circuit Court judge, who found Philip Morris U.S.A. liable in a class-action consumer fraud lawsuit (the Miles case) and ordered the company to pay $7.1 billion in compensatory damages (including $1.78 billion in lawyers' fees), and $3 billion in punitive damages to the state of Illinois. Although the judgment has been stayed by the judge, Philip Morris U.S.A. will have to post a bond for $12 billion to stay execution of the judgment when the verdict is entered.

Philip Morris retains about a 50% share of the tobacco market, and payments from Philip Morris represent roughly 50% of the cash flows payable under the Master Settlement Agreement (the "MSA"), which settled the litigation between the states and the tobacco manufacturers.

"The credit rating of a tobacco manufacturer is an indication of the likelihood of bankruptcy. For a bankruptcy of a tobacco manufacturer to affect the cash flows of a tobacco settlement transaction adversely, a series of joint events would need to occur: bankruptcy, retention of significant market share by the bankrupt manufacturer, rejection of the MSA in bankruptcy, and failure of the Model Statute," said Nicolas Weill, a senior vice president in Moody's structured finance group.

"A major change in the creditworthiness of Philip Morris, an important party to the MSA, would alter the probability of these events and could ultimately have a significant impact on the cash flows to the tobacco settlement transactions. This, in turn, might prompt Moody's to downgrade the various tobacco settlement transactions," added Weill.

Furthermore, increased vulnerability of the tobacco industry to litigation would negatively affect the outlook on the industry and have a negative impact on the ratings of the tobacco settlement transactions.

The transactions that have been put under review for possible downgrade are:

For additional information, visit our website at www.moodys.com

Legal Settlements

· Legal Settlement Resecuritization Trust 2003-A

· Legal Settlement Trust 2002-A

· Legal Settlement Trust 2001-A

· Litigation Settlement Monetized Fee Trust - Pass-Through Certificates, Series 2001-1

· Litigation Settlement Monetized Fee Trust III

· Litigation Settlement Monetized Fee Trust IV

· Litigation Settlement Monetized Fee Trust V

Tobacco Settlements

· Alabama 21st Century Authority, Series 2000

· Alabama 21st Century Authority, Series 2001

· Arkansas Development Finance Authority, Tobacco Settlement Revenue Bonds Series 2001

· Badger Tobacco Asset Securitization Corporation (Wisconsin)

· California Statewide Financing Authority (Pooled Tobacco Securitization Program)

· Children's Trust, Series 2002 (Commonwealth of Puerto Rico)

· District of Columbia Tobacco Settlement Financing Corporation, Series 2001

· Educational Enhancement Funding Corporation, Series 2002A and 2002B (South Dakota)

· Erie Tobacco Asset Securitization Corporation, Series 2000A and 2000B

· Golden State Tobacco Securitization Corporation

· Guam Economic Development Authority, Series 2001A and 2001B

· Monroe Tobacco Asset Securitization Corporation, Series 2000

· Nassau County Tobacco Settlement Corporation, Tobacco Settlement Asset Backed Bonds Series A

· New York Counties Trust I, Series 2000

· New York Counties Trust II, Series 2001

· Niagara Tobacco Asset Securitization Corporation, Series 2000

· Northern Tobacco Securitization Corporation, Series 2000 (Alaska)

· Northern Tobacco Securitization Corporation, Series 2001 (Alaska)

· Rensselaer Tobacco Asset Securitization Corporation, Series A

· Rockland Tobacco Asset Securitization Corporation, Series 2001

· The California County Tobacco Securitization Agency (Fresno County Tobacco Funding Corporation), Series 2002

· The California County Tobacco Securitization Agency (Gold Country Settlement Funding Corporation), Series 2002

· The California County Tobacco Securitization Agency (Golden Gate Tobacco Funding Corporation), Series 2002

· The California County Tobacco Securitization Agency (Merced County Tobacco Funding Corporation), Series 2002

· The California County Tobacco Securitization Agency (Sonoma County Securitization Corporation), Series 2002

· The California County Tobacco Securitization Agency (Stanislaus County Tobacco Funding Corporation), Series 2002

· The California County Tobacco Securitization Corporation (Alameda County Tobacco Asset Securitization Corporation), Series 2002

· The Children's Trust Fund, Series 2000 (Commonwealth of Puerto Rico)

· Tobacco Securitization Authority of Northern California, Series 2001A and 2001B

· Tobacco Securitization Authority of Southern California, Series 2001

· Tobacco Settlement Authority (Washington State)

· Tobacco Settlement Authority (Iowa), Series 2001A and 2001B

· Tobacco Settlement Financing Corporation (Rhode Island)

· Tobacco Settlement Financing Corporation, Series 2003 (Virginia)

· Tobacco Settlement Financing Corporation (Virgin Islands), Series 2001

· Tobacco Settlement Financing Corporation, Series 2001A and 2001B (Louisiana)

· Tobacco Settlement Financing Corporation, Series 2002 (New Jersey)

· Tobacco Settlement Revenue Management Authority, Series 2001A and 2001B (South Carolina)

· TSASC, Inc - Tobacco Flexible Amortization Bonds (New York)

· TSASC, Inc. 2002-1 (New York)

· Ulster Tobacco Asset Securitization Corporation, Series 2001

· Westchester Tobacco Asset Securitization Corporation, Tobacco Settlement Asset Backed Bonds, Series 1999

New York
Michael Kanef
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Nicolas S. Weill
Senior Vice President
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

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MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

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