Leading market positions and strong brands in the U.S. tobacco industry; Strong cash flow generation with solid operating margins; Increasingly diversified product portfolio following UST Inc. acquisition; and SABMiller equity stake provides financial flexibility Vulnerability to contracting domestic cigarette industry; High legal and regulatory risks; and Minimal geographic diversity. The ratings on Richmond, Va.-based Altria Group Inc. reflect the company's exposure to U.S. tobacco litigation and regulatory risk, and its participation in the highly competitive and declining U.S. cigarette market. Altria benefits from its leading market positions in the U.S. cigarette industry, its leading position in the smokeless tobacco category following the acquisition of UST Inc., high brand equity of the Marlboro brand, and strong free cash flow generation. Through
