Fitch affirms Altria

Fitch Ratings said it affirmed the long-term issuer default rating of Altria Group, Inc. at BBB+ after the company announced, concurrently with its earnings release, a new $1 billion share repurchase program for 2011.

The outlook is stable.

This affirmation action affects about $12.2 billion of debt outstanding at Dec. 31, 2010, Fitch said.

The agency said it assumes those share repurchases will be debt financed largely due to the demands placed on cash flow by Altria's dividend commitment.

However, such debt financing would not be expected to increase leverage materially, Fitch said.

The ratings reflect the company's continued ability to generate substantial cash flow from operations due to high operating margins, significant liquidity and commanding market share position in the U.S. tobacco industry, the agency said.

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