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KBRA Assigns Preliminary Ratings to Education Enhancement Funding Corporation Tobacco Settlement Revenue Bonds Series 2021

September 1, 2021 GMT

NEW YORK--(BUSINESS WIRE)--Sep 1, 2021--

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings Series 2021 bonds issued by Educational Enhancement Funding Corporation (EEFC), a tobacco settlement revenue asset-backed securities (ABS) transaction. EEFC, an instrumentality of the State of South Dakota, will issue five serial bonds in Series 2021. The bonds are backed by payments due under the Master Settlement Agreement entered into by participating cigarette manufacturers, 46 states (including the State of South Dakota) and various U.S. jurisdictions in settlement of certain cigarette smoking-related litigation. The majority of the proceeds of the Series 2021 bonds will be used to refund all of EEFC’s currently outstanding bonds (Series 2013). The proceeds will also be used to fund a liquidity reserve account of $11.9 million benefiting all of the Series 2021 bonds, as well as a debt service account funded in an amount to cover interest payments due on the Series 2021 bonds on the first distribution date following the closing date.


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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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CONTACT: Analytical ContactsJoanne DeSimone, Senior Director (Lead Analyst)

+1 (646) 731-2306

joanne.desimone@kbra.comRosemary Kelley, Senior Managing Director (Rating Committee Chair)

+1 (646) 731-2337

rosemary.kelley@kbra.comBusiness Development ContactArielle Smelkinson, Senior Director

+1 (646) 731-2369



SOURCE: Kroll Bond Rating Agency (KBRA)

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PUB: 09/01/2021 09:28 AM/DISC: 09/01/2021 09:28 AM