...The rating affirmation reflects Imperial Brands PLC's (IB) continued deleveraging efforts, w hich rely on internal cash generation and are supplemented w ith non-core asset disposals. It also reflects a streamlining of operations that releases sufficient resources to invest in grow th businesses, as w ell as the confirmation of a financial policy consistent w ith the current ratings. Fitch Ratings projects that leverage, w hile high, should over the next 12-18 months reduce to a level consistent w ith the rating. IB's business risk profile underpins the rating and benefits from diversification by geography ¡ albeit skew ed tow ards developed markets ¡ by brand and, increasingly, by next-generation products (NGPs). In our view , this counterbalances the continued decline in combustible tobacco product sales, w eaker-than-peers pricing pow er, changing consumer preferences, and exposure to increasing competition in the grow ing NGP market....
