Strong position as the world's number-two international tobacco company; Resilient positions in profitable markets, sustaining high profitability and cash-flow generation; and Unrivalled geographical diversity, including significant exposure to growing markets. Litigation risks: most acutely in, although not limited to, the U.S.; Moderate financial policy, in line with potential further acquisitions; Rising price sensitivity and market segmentation in mature markets; and Decreasing social acceptance of the cigarette. The ratings on British American Tobacco PLC (BAT) are based on the group's strong position as the world's second-largest international tobacco company; its high and mostly predictable level of cash flows; and unrivalled geographical diversification, which will be marginally enhanced by current acquisitions. These factors are balanced, however, by BAT's moderate financial policy, which
