FMSbonds Inc. And Mesirow Financial Inc. Ratings For Various Receipt Series Lowered To 'A-' And 'A-/A-2'

NEW YORK (S&P Global Ratings) April 7, 2020--S&P Global Ratings lowered its ratings on 15 tender-option bond trust issues floaters and residuals for FMSbonds Inc.'s series 2016-ZF0500, 2017-ZM0509, 2016-XF0499, 2017-XF2419, 2017-XF2419, 2015-ZF0218, and 2017-XF0591 and Mesirow Financial Inc.'s series 2017-ZM0509, related to various underlying bonds, to 'A-' and 'A-/A-2', respectively, from 'A' and 'A/A-1'. This rating action follows S&P Global Ratings lowering its ratings on the underlying bonds. (Please see the article, titled "Metropolitan Transportation Authority, NY Revenue Bond Rating Lowered To 'A-' On Pandemic's Effects," published March 24, 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 and S&P Global Ratings' expectation of

...As noted in the Metropolitan Transportation Authority analysis, "The rating action and negative outlook on the transportation revenue bonds reflect our view of financial challenges posed by the COVID-19 pandemic, including its impact on ridership and traffic, likely impact to subsidies and taxes, and prospects for permanent negative dislocation of passenger and traffic volume, compounding the downward trend of recent years." 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 amendments to transaction terms. Environmental, social, and governance factors relevant to the rating action are health-and-safety....

Ratings Action