S&P ups Lorillard to stable

Standard & Poor's said it affirmed the BBB- corporate credit and issue ratings on Lorillard Inc. and revised the outlook on the company to stable from negative.

S&P said there is some uncertainty related to regulation of menthol cigarettes in the future. The outlook revision on Lorillard reflects the opinion that Lorillard's operating performance and credit measures have remained strong.

The ratings and outlook consider the view that extensive further review will likely be conducted by the FDA related to menthol cigarettes before a decision is reached with regard to possible future regulatory actions and potential regulatory changes will likely take more than a year to implement, the agency said.

The ratings also consider the views that no clear scientific evidence has surfaced to date that menthol cigarettes are more dangerous than nonmenthol cigarettes, and that an outright ban of menthol cigarettes in the United States is unlikely in the next one to two years, the agency added.

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