S&P affirms Altria Group

Standard & Poor’s said it affirmed all of its ratings on Altria Group Inc., including the BBB+ corporate credit rating.

The outlook is stable.

“The rating affirmation reflects our forecast that Altria will increase EBITDA about 4% in 2015, mainly because of generally favorable conditions in the U.S. tobacco space, including a core tobacco consumer benefiting from lower gas prices and somewhat better job prospects, a rational competitive environment, and the absence of payments to U.S. tobacco growers, which ceased at the end of 2014,” said S&P credit analyst Jerry Phelan in a news release.

“These factors will enable the company to modestly expand margins, grow EBITDA, and sustain credit metrics near current levels, including leverage below 2x, despite higher pension costs and an assumed modest increase in judgments.”

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