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Japan Tobacco Inc.
Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Abstract
A dominant position in Japan's tobacco market. A relatively supportive regulatory environment. A conservative financial policy and strong cash flow. An obligation to buy costly domestic materials, which leaves the company with lower profit margins than its international peers. A gradual decline in tobacco demand in Japan over the longer term as the adult population decreases. The rating on Japan Tobacco Inc. reflects the company's dominant position in Japan, the world's third-largest tobacco market in terms of unit sales. The rating also takes into consideration benefits arising from Japan's relatively supportive regulatory environment, as well as Japan Tobacco's conservative financial policy and strong cash flow generation. Japan Tobacco enjoys strong, predictable earnings from its domestic tobacco business. The company has...
Companies mentioned in this report are: Japan Tobacco Inc.,JT Capital (U.K.) PLC
Action: Review
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