The ratings on U.K.-based 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 geographic diversification. These factors are mitigated by BAT's intermediate financial risk profile and ongoing litigation risk, particularly in the U.S. and Canada. At June 30, 2007, BAT had adjusted debt of £6.46 billion. With sales of 689 billion cigarettes, amounting to net sales of £9.7 billion in the year to June 2007, in line with the 2006 figure, BAT commands a steady 25% share of the global tobacco market (excluding China) through a diverse portfolio of brands, including Lucky Strike, Dunhill, Kent, and Pall Mall. No single country accounts for more
