The ratings on British American Tobacco PLC (BAT) are based on the group's position as the world's second-largest international tobacco company, and its conservative financial structure. BAT's position was strengthened by its merger with Rothmans International BV (NL) (Rothmans; A/Stable/--), and the improvement in the combined entity's business profile. The merger strengthened BAT's global position, increasing its world market share by volume to more than 15% from 13%. Rothmans strengthened the new group's market presence in the premium segment, which improved average margins, and in international brands. Rothmans' negligible U.S. cigarette business diluted BAT's exposure to the litigious U.S. market; nonetheless, litigation remains a risk for BAT. The July 2000 Florida jury verdict in the Engle class-action case, awarding $144.9
