Fitch affirms Altria

Fitch Ratings said it has affirmed the Altria Group, Inc.'s ratings as follows: issuer default rating at BBB+; bank credit facility at BBB+; senior unsecured debt at BBB+; short-term issuer default rating at F2 and commercial paper at F2; as well as Philip Morris Capital Corp.'s issuer default rating at BBB+; senior unsecured debt at BBB+; short-term issuer default rating at F2 and CP at F2.

The outlook has been revised to stable.

Fitch said its action follows the announcement of Altria's definitive agreement with UST, Inc.'s board of directors to purchase all outstanding shares of UST for $11.7 billion, or about 12 times EBITDA, which includes the assumption of UST's debt.

According to the agency, the debt-financed acquisition is expected to be funded with an additional $7 billion credit facility, which will be drawn upon in conjunction with an existing $4 billion facility.

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