S&P: Reynolds American, Loews, Altria, British American Tobacco unchanged

Standard & Poor's said that the ratings and outlooks on the major U.S. cigarette manufacturers' parent companies, including Altria Group Inc. (BBB+/negative/A-2), Reynolds American Inc. (BB+/negative), Loews Corp. (A/negative) and British American Tobacco plc (BBB+/stable/A-2), would not be affected by the Florida Supreme Court's ruling today in favor of the U.S. cigarette manufacturers in the Engle v. Liggett Group Inc., et al. class action lawsuit.

The agency said that the decision upholds the Florida Third District Court of Appeal's May 2003 decision to reverse the lower court's July 2000 verdict that awarded the plaintiffs almost $145 billion in punitive damages against all the industry participants.

S&P added that the negative outlooks on the rated parent companies of the major U.S. cigarette manufacturers reflect concerns about the risks related to three key lawsuits: Price, Engle and DOJ.

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