Moody's rates Altria notes A3

Moody's Investors Service said it assigned an A3 rating to Altria Group Inc.'s euro-denominated senior unsecured notes offering.

The proceeds will be used to refinance existing debt and for general corporate, Moody's said.

The rating is supported by its market position as the largest tobacco company in the United States by sales, its top brands and its solid and expanding investment portfolio of tobacco and tobacco-related products, the agency said.

The rating also reflects Altria's strong and stable cash flow underpinned by the relatively inelastic nature of tobacco demand, Moody's said.

The rating is constrained by the continued decline in combustible cigarette volume, increasing regulatory risk and litigation risk in the United States, the agency said.

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