Fitch Affirms Rockland Tobacco Asset Securitization Corporation, Series 2005

NEW YORK--(Business Wire)--
Fitch Ratings affirms two classes from Rockland Tobacco Asset Securitization
Corporation, tobacco settlement asset-backed bonds, series 2005, as follows:

--$13,084,280 series 2005A bonds due Aug. 15, 2045 at 'BBB', Stable Outlook;

--$2,860,940 series 2005B bonds due Aug. 15, 2050 at 'BB+', Positive Outlook.

The affirmations are based on the level of stress each class is able to
withstand as indicated by Fitch's new breakeven cash flow model. The model
indicates, for each class of bonds, the level of the annual Master Settlement
Agreement (MSA) payment percent change the trust would be able to sustain and
still pay the bond in full by the legal final date. The base case 'B'
corresponds to a 1% increase in the MSA payment received by the trust every
year. The 'BBB' category corresponds to an annual MSA payment decline of 1.25%.
The cash flow model accounts for the amount of the latest reported MSA payment
that the transaction has received, the capital structure, the reserve account,
and the bonds' legal final dates.

The bond payments are also tied to the tobacco companies making MSA payments.
Tobacco settlement bonds can be rated up to 'BBB+' based on Fitch's view of the
whole tobacco industry and the executory nature of the MSA. In the event of a
bankruptcy of a tobacco company, Fitch believes there is an incentive for the
company to continue to make payments under the MSA.

The series 2005A bond is being affirmed at 'BBB' with a Stable Outlook based on
the model output and other qualitative factors. The series 2005B bond is being
affirmed at 'BB+'. The bond is assigned a Positive Outlook because a relatively
stable MSA cash flow in the future is likely to lead to an upgrade of the
rating.

Rockland Tobacco Asset Securitization Corporation, tobacco settlement
asset-backed bonds, series 2005 bonds are secured by the pledged payments made
under the MSA. The pledged payments consist of New York's share of perpetual
annual payments and strategic contribution payments by the original
participating manufacturers (OPMs) and subsequent participating manufacturers
(SPMs). The OPMs at the time of the original agreement were Philip Morris USA,
Inc.; R.J. Reynolds Tobacco Company; Brown & Williamson Tobacco Corporation; and
Lorillard Tobacco Company. The amount of annual MSA payments received by the
trust are mainly affected by the tobacco consumption level and inflation rate,
as well as state specific adjustments, as specified in the MSA.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Aoto Kenmochi, 212-908-0867
Cynthia Ullrich, 212-908-0609
Stefanie Leung, 212-980-0826
or
Media Relations:
Sandro Scenga, 212-908-0278
Email: sandro.scenga@fitchratings.com

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