Leading market positions and brands in the U.S. tobacco industry; Strong credit measures and steady cash flow; and SABMiller PLC equity stake provides financial flexibility. Vulnerability to contracting domestic cigarette industry; High legal and regulatory risks; Increased debt levels following the UST Inc. acquisition; and Minimal geographic diversity. The ratings on Richmond, Va.-based Altria Group Inc. reflect the company's exposure to U.S. tobacco litigation risk and its participation in the highly competitive and declining U.S. cigarette market. The company's leading market positions in the U.S. tobacco industry, its leading position in the smokeless tobacco category following the acquisition of UST Inc., and strong free cash flow generation partially offset these risk factors. Altria is a holding company for its wholly
