The ratings on U.K.-based British American Tobacco PLC (BAT) reflect the group's strong position as one the world's two largest international tobacco companies, resilient profitability and cash generation, and exceptional geographic diversification. These factors are mitigated by BAT's intermediate financial risk profile, as well as regulatory and litigation risks. On June 30, 2008, BAT had adjusted debt of £6.9 billion. With net sales of £10.8 billion in the year to June 2008, up 7% from £10.0 billion in the year to December 2007, BAT commands a steady 20.5% volume share of the global tobacco market (excluding China) through a diverse portfolio of brands, including Lucky Strike, Dunhill, Kent, and Pall Mall. BAT's free cash flow generation is set to remain
