Strong market position as one of the world's top two international tobacco companies Unrivaled geographic diversification, including significant exposure to markets growing in volume and value Strong conversion of profits into cash Moderate financial policy Rising price sensitivity in mature markets Exposure to shifts in regulatory framework and tobacco taxation Litigation risks, most acutely in, although not limited to, the U.S. The ratings on U.K.-based British American Tobacco PLC (BAT) reflect the group's strong position as one the world's two largest international tobacco companies, resilient profitability and cash generation, and exceptional geographic diversification. These factors are mitigated by BAT's intermediate financial risk profile, as well as regulatory and litigation risks. On June 30, 2008, BAT had adjusted debt of £6.9
