LONDON (S&P Global Ratings) Feb. 10, 2023--S&P Global Ratings today said that British American Tobacco PLC's rating headroom remained tight at the end of 2022. Following the publication of the company's 2022 financial results, we estimate that its adjusted debt to EBITDA rose to around 3.5x (from 3.3x in 2021) and funds from operations to debt fell slightly to about 18% (from 20% in 2021). Both metrics are weaker than our previous base-case assumptions published in February 2022. Nevertheless, we continue to forecast that British American Tobacco (BAT; BBB+/Negative/A-2) will achieve an S&P Global Ratings-adjusted debt to EBITDA ratio close to 3.0x over 2023-2024. However, the uncertain macroeconomic environment, high currency-exchange volatility, and persistent regulatory and litigation risks continue to
