...British American Tobacco plc's (BAT) ratings are underpinned by its strong business risk profile thanks to its position as the largest global tobacco industry company, its regional and brand diversification, including scope to grow next- generation products, w ith exposure to a range of mature, cash-generating and emerging markets, offering grow th potential. How ever, the rating remains constrained by a high financial risk profile for its rating, follow ing BAT's acquisition of Reynolds American Inc. (RAI). The Stable Outlook assumes a steady deleveraging path over Fitch Ratings' four-year rating horizon to 2022 w ith financial leverage coming back w ithin our rating sensitives and restoration of financial headroom for the rating. Based on our assessment of BAT's financial flexibility, w e have assigned the higher of the tw o short-term options (F2) for the current rating profile and removed the short-term rating from Under Criteria Observation. How ever, any material w eakening in financial...
