Strong market position as one of the world's top two international tobacco companies. Strong conversion of profits into cash. Unrivaled geographic diversification, including significant exposure to markets that are growing in volume and value. Moderate financial policy. Rising price sensitivity in mature markets. Exposure to changes in regulatory risk 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 Standard&Poor's Ratings Services' view of the group's "strong" business risk profile, as one of the world's two largest international tobacco companies, and its "intermediate" financial risk profile. BAT's key business strengths include its resilient profitability and cash generation, and its exceptional geographic diversification. We see
