Leading market positions and strong brands across multiple segments within 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. Exposure 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. Standard&Poor's Ratings Services consider the company's business risk profile to be satisfactory, as Altria benefits from its leading market position in the U.S. cigarette industry, its leading position in the growing smokeless tobacco category following
