Strong market position as the world's second-largest listed international tobacco company. High geographic diversification, strengthened by sizable presence in emerging markets. Long-term pressure on volumes and increased price sensitivity in mature markets. Exposure to changes in regulatory risk and tobacco taxation. Litigation risks, mostly in, although not limited to, North America. Moderate financial policy, underpinned by management of an unadjusted net debt-to-EBITDA ratio of 1.5x-2.5x. Strong cash flow generation, with relatively limited capital expenditure needs and annual free operating cash flow of close to £4 billion. Dividends and bolt-on acquisitions largely absorbing the group's discretionary cash flows. The stable outlook reflects S&P Global Ratings' view that British American Tobacco PLC (BAT) is sufficiently profitable and will likely generate adequate cash
