...Stable Business Profile: The ratings reflect British American Tobacco plc.'s (BAT) position as a leading international tobacco company, supported by the diversity of its portfolio of brands and the countries in which it operates. BAT's superior geographical diversity, which Fitch estimates to include over 50% of profits coming from high-growth emerging markets, is key to its ability to protect revenue through price increases and cost rationalisation in an industry facing accelerating decline of consumption in the developed world. Regulatory Pressures: The ratings also factor in the increasing regulation of tobacco companies. This includes the gradual extension of smoking and advertising restrictions, and higher excise duty, to the less regulated developing markets of eastern Europe, Asia and Latin America. Australia's plain packaging legislation could have adverse effects if it were replicated across the world, although we see this risk as low at present. We expect limited adverse effects...
