The ratings on British American Tobacco PLC (BAT) are based on the group's position as the world's second-largest international tobacco company, as well as its strong and predictable level of cash flows, unrivalled geographical diversification, and conservative financial policy. These factors are mitigated, however, by direct and indirect risks arising from ongoing litigation, especially in the U.S. With sales of £11.3 billion ($16.7 billion) in the year to June 2002 (sales and volumes broadly unchanged compared with the previous year), BAT commands a stable 15% share of the global cigarette market, through a diverse portfolio of brands. The company owns and markets a vast range of cigarettes from local strongholds to premium international names such as Lucky Strike, Dunhill, Rothmans,
