Strong position as the world's No. 2 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. Rising price sensitivity and market segmentation in mature markets; Intermediate financial risk profile, although this is not expected to worsen despite acquisitions and increased shareholder focus; and Litigation risks (most acutely in, although not limited to, the U.S.). 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 and ongoing litigation risk, particularly in the U.S. and
