Strong market position as the world's second-largest listed international tobacco company. Strong cash flow generation. High geographic diversification, strengthened by sizable presence in emerging markets. Moderate financial policy. Long-term pressure on volumes and increased price sensitivity in mature markets. Exposure to changes in regulatory risk and tobacco taxation. Litigation risks, mostly in, although not limited to, the U.S. The ratings on U.K.-based British American Tobacco PLC (BAT) reflect Standard&Poor's Ratings Services' view of the group's "strong" business risk profile, as one of the world's leading international tobacco companies, and its "intermediate" financial risk profile. BAT's business strengths manifest through its resilient profitability and cash generation, strong market position, and its broad geographic diversification. We believe cash flow generation
