S&P gives Reynolds American notes BB

Standard & Poor's said it assigned its BB senior secured debt rating and 3 recovery rating to Reynolds American Inc.'s proposed issue of seven-, 10- and 12-year senior secured notes, totaling $1.65 billion.

"At the same time, we lowered our senior secured debt rating on RJ Reynolds Tobacco Holdings Inc.'s (RJR's) existing senior secured notes to BB from BB+ and assigned a recovery rating of 3 to these notes," said S&P credit analyst David Kang.

In addition, the agency said it lowered its senior unsecured debt rating on RJR's existing senior unsecured notes to BB- from BB because of the increased amount of priority debt ahead of it and removed these ratings from CreditWatch where they were placed April 25.

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