Moody's affirms Altria Group

Moody's Investors Service said it affirmed the Baa1 long-term senior unsecured debt rating and prime-2 short-term rating of Altria Group, Inc., along with Philip Morris Capital Corp.'s long-term senior unsecured debt rating at Baa1 and short-term debt rating at prime-2.

The outlook was changed to negative from stable.

The action follows news of the company's intention to acquire UST, Inc. for about $11.7 billion, including Altria's assumption of about $1.3 billion in UST's current debt outstanding. The transaction remains subject to approvals.

The affirmation reflects the important strategic benefits of the addition of UST's leading smokeless tobacco brands, Moody's said, balanced by the increased leverage and weakening of credit metrics as a result of the sizable debt incurred to finance the acquisition.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.