S&P upgrades British American Tobacco

Standard & Poor's said it raised its long-term corporate credit rating on British American Tobacco plc to A- from BBB+.

At the same time, the agency said it affirmed its A-2 short-term corporate credit rating on the company. The outlook is stable.

S&P said the upgrade reflects its view that the company is sufficiently cash flow generative to be able to maintain its credit metrics at levels commensurate with an A- rating.

In addition, according to S&P, the group has stated that it manages its financial profile in line with an unadjusted net-debt-to-EBITDA ratio of 1.5x to 2.5x. This is compatible with an A- rating in the context of the company's strong business risk profile.

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