Moody's lifts Altria view to stable

Moody's Investors Service said it affirmed the Baa1 long-term senior unsecured debt rating and Prime-2 short-term rating of Altria Group, Inc. and changed the outlook to stable from negative.

The agency said the outlook revision reflects the company's early success in integrating UST LLC by achieving significant cost savings and restoring market share growth in the company's flagship Skoal and Copenhagen premium smokeless tobacco brands; the sustained profitability improvements and demonstrated pricing flexibility of its large cigarette franchise despite significant volume pressure; and management's commitment to its strong investment-grade credit metrics.

Altria's ratings incorporate the strong, predictable and highly profitable cash flows and considerable franchise value of its significant tobacco business tempered by the still unpredictable U.S. litigation environment and limited geographic diversification of the company, Moody's said.

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