S&P: RJ Reynolds, other tobacco parents unaffected

Standard & Poor's said the ratings and outlooks on the parent companies of U.S. tobacco subsidiaries will remain intact following a ruling by a federal appellate court that the U.S. government cannot continue to seek its $280 billion disgorgement claim from the tobacco industry in the Department of Justice lawsuit.

The rated companies include Altria Group Inc. (BBB+/negative/A-2), parent of PM USA; RJ Reynolds Tobacco Holdings Inc. (BB+/negative/--), parent of RJ Reynolds Tobacco Co. and subsidiary of Reynolds American Inc. (unrated); Loews Corp. (A/negative/--), parent of Lorillard Tobacco and British American Tobacco plc (BBB+/stable/A-2), parent of Brown & Williamson.

Although it is possible for the department to appeal Friday's decision to the U.S. Supreme Court, S&P said the elimination of this substantial financial claim leaves only potential remedies to be resolved and significantly reduces the industry's financial risk related to this lawsuit.

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