by Structured Settlement Watchdog
In the last 45 days, I’ve reported about a pair of structured settlement annuitants who made partial sales of structured settlement payment rights where a structured settlement payment servicing agreement with SuttonPark was put in place to administer the payments with SuttonPark instead of the annuity issuer. Structured settlement servicing agreements primarily come into play where the structured settlement annuity issuer will not split payments.
On July 22, 2024, DBRS, Inc. (Morningstar DBRS) placed nine credit ratings Under Review with Negative Implications from four SuttonPark Structured Settlements transactions.
Morningstar says the rating actions are based on the following analytical considerations:
All outstanding notes across the transactions noted above have been placed on Under Review with Negative Implications due to the presence of less than sufficient data and information related to the availability of the lock box account. Specifically, Morningstar DBRS has not yet received sufficient data or information from the lock box provider or the indenture trustee upon request.
The termination or transfer of the lock box account could lead to untimely or insufficient cashflow to the transactions.
Morningstar DBRS will continue to try to obtain information related to the availability or transfer of the lock box account in order to resolve the Under Review with Negative Implications.
— The generally high credit quality of annuity providers and their improved capitalization positions and risk-management frameworks, which have been enhanced since the global financial crisis of 2008-09.
— The transactions’ capital structure and form and sufficiency of available credit enhancement.
— The transactions’ performance to date, with zero to minimal defaults.
Morningstar DBRS Places Four SuttonPark Structured Settlements Transactions Under Review with Negative Implications | Morningstar DBRS July 22, 2024
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