The ratings on British American Tobacco PLC (BAT) reflect the group's strong position as the world's second-largest international tobacco company, high and relatively predictable cash flows, and exceptional geographical diversification. These factors are mitigated, however, by BAT's intermediate financial risk profile, albeit that this is not expected to worsen despite acquisitions and increased shareholder focus. The group is also facing ongoing litigation risk, particularly in the U.S. and Canada. At June 30, 2005, BAT had unadjusted gross debt of £7.6 billion ($13.7 billion). With stable net sales of £9.6 billion in the year to June 30, 2005, BAT commands a steady 15% share of the global cigarette market through a diverse portfolio of brands, including Lucky Strike, Dunhill, Kent, and
