Strong market share and high brand equity across multiple tobacco segments. Solid operating margins and strong, predictable cash flow. Majority of profits derived from the shrinking U.S. cigarette industry. High legal and regulatory risk. Potential for ongoing excise tax increases. Intense competition. Limited geographic diversity outside the U.S. Moderate financial policy, notwithstanding high shareholder payments. Low fixed costs and capital expenditures. SABMiller equity stake provides financial flexibility. The stable outlook incorporates our assumption that Altria will maintain profitability and credit ratios near current levels and that financial policy will continue to result in substantially all free cash flow directed towards shareholder payments, though no leveraging event--such as a meaningful debt-financed share buyback--occurs. We could raise the ratings if the litigation
