FMSbonds Inc., George K. Baum&Co. Long-Term Ratings On Six Various Receipts Raised To 'AA+/A-1', 'AA+'

NEW YORK (S&P Global Ratings) Feb. 17, 2023--S&P Global Ratings raised its long-term ratings on six tender-option bond trust receipts issued by FMSbonds Inc. (series 2018-ZF2716 and 2018-ZF2631) and George K. Baum&Co. (series 2018-XG0186), related to various underlying bonds, to 'AA+/A-1' and 'AA+' from 'AA/A-1' and 'AA', respectively (see the table). This rating action follows S&P Global Ratings' raising its rating on the underlying bonds. (For further information, see "Michigan State Housing Development Authority Bond Rating Raised To 'AA+' From ?AA? On Application Of Methodology," published Feb. 13, 2023, on RatingsDirect.) The long-term component of the rating on the floaters and the rating on the residuals reflect the rating on the underlying bonds and S&P Global Ratings' expectation

...further information, see "Michigan State Housing Development Authority Bond Rating Raised To '##+' From `##' On Application Of Methodology," published Feb. 13, 2023, on RatingsDirect.) The long-term component of the rating on the floaters and the rating on the residuals reflect the rating on the underlying bonds 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. The short-term component of the rating reflects the lower of S&P Global Ratings' rating on each issue's respective liquidity provider or 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. Changes to the ratings on these bonds could result from, among other things, changes to the ratings on the underlying bonds or support...

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