FMSbonds Inc. And Mesirow Financial Inc. 14 Various Receipt Ratings Lowered To 'AA-', 'AA-/A-1'

NEW YORK (S&P Global Ratings) July 15, 2020--S&P Global Ratings lowered its ratings on 14 tender-option bond trust issues for FMSbonds Inc.'s series 2017-XF0591, 2020-XF2868, 2020-XF2878, and 2017-XF2419 and Mesirow Financial Inc.'s series 2020-XM0843, related to various underlying bonds, to 'AA-' and 'AA-/A-1' from 'AA' and 'AA/A-1', respectively, and subsequently removed them from CreditWatch with negative implications where S&P Global Ratings placed them on May 8, 2020. (Please see the table.) This rating action follows S&P Global Ratings' lowering of its ratings on the underlying bonds and subsequent removal from CreditWatch with negative implications where S&P Global Ratings placed them on May 4, 2020. (For further information, please see the article, titled "Metropolitan Transportation Authority, NY Ratings Lowered On Steep

...The long-term rating on the custodials jointly reflects the rating on the underlying bonds and credit enhancement provided by the credit provider at the correlation level noted in the ratings table. The long-term component of the rating on the floaters and the ratings on the residuals reflect the rating on the custodials and S&P Global Ratings' expectation of the likelihood of bondholders receiving interest-and-principal payments when due if they do not exercise their put option. If the underlying security benefits from an insurance policy, then our general rating methodology for the custodials would be the higher of the ratings on the insured underlying security or the jointly supported rating based on the underlying rating of the underlying security and the rating on the credit provider. The short-term components of the ratings reflect the lower of the rating on the liquidity provider and the correlated short-term rating of the long-term rating on the underlying security. The short-term...

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