BAT ratingh faces downgrade after higher Reynolds bid

Fitch Ratings expects to downgrade British American Tobacco’s issue default rating by two notches following the increased price and cash component of the group’s revised deal to acquire full control of Reynolds American.

Fitch said this would result in higher leverage than under the original proposal.

BAT’s ‘A-‘ IDR was placed on rating watch negative following the first approach in October.

At 8:43am: (LON:BATS) British American Tobacco PLC share price was +83p at 4663p

Story provided by StockMarketWire.com