Fitch assigns R.J. Reynolds notes BB+

Fitch Ratings said it assigned a BB+ rating to R.J. Reynolds Tobacco Holdings, Inc.'s (RJR) proposed $500 million private offering of guaranteed secured notes, guaranteed by Reynolds American Inc., R.J. Reynolds Tobacco Co. and certain other subsidiaries.

In conjunction with the offering RJR has announced a cash tender offer for any and all of its $500 million aggregate principal amount of 7 ¾% notes due 2006, the agency added.

Fitch said it rates RJR's guaranteed notes and bank credit facility BB+ and senior unsecured notes BB.

The outlook is stable.

The ratings rely upon maintenance of conservative financial policies and a high degree of liquidity to manage the uncertainties surrounding tobacco-related litigation and the competitive tobacco operating environment, Fitch noted, noting several high-profile cases that exist.

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