...Negative Outlook: Fitch Ratings revised the Outlook on Imperial Tobacco Group PLC (ITG) in July 2014 following the announced acquisition of USD7.1bn (GBP4.2bn) of assets from Reynolds American Inc. and Lorillard, Inc. (BBB/RWN). The revision of the Outlook reflects the combination of challenges faced by the existing core European operations and the anticipated increase in leverage resulting from the acquisition when it will complete in the financial year to September 2015 (FY15). Stronger Operating Profile: The acquisition will significantly enhance ITG's US business, giving it a number-three position with a cigarette market share of 10% (currently 3%), a more substantial portfolio which will be well diversified by pricing point, and a national-reaching distribution platform. This should benefit Imperial's access to shelf space and its negotiating power with retailers. Consequently, we expect ITG's profitability and diversification to grow as its reliance on the EU should fall to approximately...
