Standard&Poor's Ratings Services said today that British American Tobacco PLC's (BAT; A/Stable/A-1) letter of interest for the privatization of Italian tobacco monopoly Ente Tabacchi Italiano (ETI) will have no effect on the ratings and outlook on BAT, as the letter of interest is nonbinding at this stage. ETI is the last tobacco monopoly to be privatized in Western Europe, and controls tobacco distribution in the large Italian cigarette market and about three-quarters of the local cigar market. ETI also manufactures under license about one-quarter of the cigarettes sold in Italy by Philip Morris Cos. Inc. (A/Stable/A-1). Press reports indicate that the seller could be looking for an amount of up to €1.4 billion ($1.36 billion), depending on the
