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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
Stable cash flow backed by a dominant position in Japan's market for tobacco products Increased geographic diversity of revenue sources Improving debt-to-capital ratio, due to steady repayment of debt Low risk of potential lawsuits compared with global peers Downward pressure on mid- to long-term profitability, due to weak demand in Japan and major European countries Uncertainty over sustainability of profit growth in emerging markets Nontobacco businesses' contributions to profits remain limited Japan Tobacco Inc. (JT; A+/Stable/--) is the world's third-largest tobacco company. There is a relatively high industry risk attached to tobacco production and sales because these activities are sensitive to tighter regulation by government and the risk of litigation associated with health damage. Nevertheless, JT's overwhelming comparative advantage in...
Companies mentioned in this report are: Japan Tobacco Inc.
Action: Review
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