Fitch Removes Golden State Tobacco Securitization Corp's Bonds from Rating Watch Negative

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has removed the following Golden State Tobacco Securitization Corporation's (Golden State) tobacco settlement asset-backed bonds, series 2007 from Rating Watch Negative:

Series 2007A-1 senior current interest serial bonds:

-- $30,730,000 due June 1, 2009 'BBB+';

-- $34,080,000 due June 1, 2010 'BBB+';

-- $19,920,000 due June 1, 2011 'BBB+';

-- $15,605,000 due June 1, 2011 'BBB+';

-- $18,710,000 due June 1, 2012 'BBB+';

-- $20,470,000 due June 1, 2012 'BBB+';

-- $6,395,000 due June 1, 2013 'BBB+';

-- $11,655,000 due June 1, 2013 'BBB+';

-- $20,570,000 due June 1, 2014 'BBB+';

-- $23,190,000 due June 1, 2015 'BBB+';

-- $28,875,000 due June 1, 2016 'BBB+';

-- $5,140,000 due June 1, 2017 'BBB+';

-- $27,255,000 due June 1, 2017 'BBB+'.

Series 2007A-1 senior current interest turbo term bonds:

-- $863,100,000 due 2027 'BBB+';

-- $610,525,000 due 2033 'BBB+';

-- $1,250,000,000 due 2047 'BBB+';

-- $693,575,000 due 2047 'BBB+'.

Series 2007A-2 senior convertible turbo term bonds:

-- $389,192,591.40 due June 1, 2037 'BBB+'.

Golden State entered into a forward purchase agreement with Lehman Brothers Special Financing Inc. (LBSFI) to invest moneys held in the above-referenced series 2007 bond's reserve fund. LBSFI, which filed for bankruptcy on Oct. 3, 2008, was unable to fulfill its obligations under the agreement. Golden State reinvested the funds held in the reserve fund with eligible investments pursuant to the indenture, and Fitch subsequently removed the series 2007 bonds from Rating Watch Negative.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.