On April 16, 2003, Standard&Poor's Ratings Services placed its 'A/A-1' ratings on U.K.-based international tobacco company British American Tobacco PLC (BAT) and related entities on CreditWatch with negative implications, due to concerns about the restoration of a financial profile commensurate with the ratings on the company, and also due to the company's exposure to the increased level of litigation risk in the U.S. Expected further acquisitions, and the company's announced share repurchase program (up to about £1 billion {$1.6 million} to June 30, 2004), if utilized, will prevent BAT from swiftly restoring a financial profile in line with the ratings, defined as a funds from operations (FFO)-to-net debt ratio of 35%, on a pension-adjusted basis. Although the company
