FMSbonds Inc. And Mesirow Financial Inc. 'A-', 'A-/A-2' Receipt Ratings On Various Issues Placed On CreditWatch Negative

NEW YORK (S&P Global Ratings) May 8, 2020--S&P Global Ratings placed its 'A-' and 'A-/A-2' ratings on 13 tender-option bond trust floaters and residuals for FMSbonds Inc.'s series 2017-XF0583, 2015-ZF0218, 2016-XF0499, 2016-XF0520, and 2016-ZF0500 and Mesirow Financial Inc.'s 2017-ZM0509, related to various underlying bonds, on CreditWatch with negative implications. (Please see the table.) This rating action follows S&P Global Ratings' placement of the underlying bond ratings on CreditWatch with negative implications. (For further information, please see the article, titled "Metropolitan Transportation Authority, NY Ratings Placed On CreditWatch Negative Due To COVID-19-Related Pressures," published May 4, 2020, on RatingsDirect.) The long-term component of the ratings on the floaters and the ratings on the residuals reflect the rating on the underlying bonds

...issue's respective liquidity provider and the correlated short-term rating of the long-term rating on the underlying security. The short-term rating reflects S&P Global Ratings' opinion of the likelihood of bondholders receiving interest-and-principal payments if they exercise their put option. As noted in the article on Metropolitan Transportation Authority (MTA), "The CreditWatch action reflects our assessment of the significant and growing operational and financial impacts on the MTA as a result of the ongoing COVID-19 pandemic." "These impacts include efforts to promote health and safety with social distancing protocols that are leading to significant fare, toll, and likely tax and subsidy revenue declines of several billion dollars on a combined basis, projected over 2020-2021,". Changes to the ratings on these receipts could result from, among other things, changes to the ratings on the underlying bonds or support provider, the expiration or termination of support agreements, or the...

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