Strong position as the world's number-two international tobacco company; Unrivalled geographical diversity, including significant exposure to growing markets; and Resilient positions in diverse markets, sustaining high profitability and cash flow generation. Litigation risks (most acutely in, although not limited to, the U.S.); Intermediate financial risk profile, although this is not expected to worsen despite acquisitions and increased shareholder focus; and Rising price sensitivity and market segmentation in mature markets. The ratings on British American Tobacco PLC (BAT) reflect the group's strong position as the world's second-largest international tobacco company, high and relatively predictable cash flows, and exceptional geographical diversification. These factors are mitigated, however, by BAT's intermediate financial risk profile, albeit that this is not expected to worsen despite acquisitions
