Moody's: No change to Lorillard

Moody's said it believes that Lorillard's acquisition of blu ecigs is credit positive for the company and has no immediate impact on the company's Baa2 ratings or stable outlook.

While the acquisition is relatively small at $135 million, the agency said it expects the acquisition to better diversify Lorillard's source of revenues and operating profits, which are largely dependent on the company's largest cigarette brand, Newport.

The agency said the acquisition also allows Lorillard to establish a presence in the relatively nascent electronic cigarette industry and to be an active participant in the national harm reduction debate.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.