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Summary: Lorillard Inc. Dec 11
Standard & Poors, Dec 2011
Abstract
Standard & Poor's Ratings Services' ratings on Greensboro, N.C.-based Lorillard Inc. reflect our assessment of the company's business risk profile as 'fair' (as our criteria define the term) based on the company's participation in the contracting and competitive domestic cigarette industry, very high brand and product concentration, lack of geographic diversity, high litigation risk inherent to the cigarette industry, and ongoing regulatory risk. In addition, we believe there are risks associated with further potential increases in federal and state excise taxes. Our business risk analysis also incorporates the strong brand equity of Newport, the company's high operating margins, and its good market position within the menthol cigarette category. In our view, Lorillard has an 'intermediate' financial risk profile, reflecting the...
Companies mentioned in this report are: Lorillard Inc.
Action: Review
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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
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