27th Feb 2020 18:00
(Alliance News) - Moody's Investors Service on Thursday affirmed the Baa3 long-term issuer rating of Imperial Brands PLC and the Baa3 senior unsecured rating of its subsidiary Imperial Brands Finance PLC
The ratings agency retained its stable outlook on the tobacco company.
"Today's rating action reflects our expectation that Imperial's leverage, measured in terms of Moody's adjusted gross debt to earnings before interest, tax, depreciation and amortisation, will improve over the next 12-18 months, driven by debt repayments," says Roberto Pozzi, Moody's senior vice president and lead analyst for Imperial Brands.
"Any rating upside is currently constrained by the still high leverage and by company's limited progress in developing its Next Generation Products business," Pozzi added.
Imperial's Baa3 rating reflects the company's good pricing power in its traditional combustible tobacco business, the high profitability of its operations and its stable cash flow generation, Moody's said.
The stable outlook reflects the company's cash flow generation and expectations that the company's credit metrics will strengthen by debt repayments, the ratings agency added.
Shares in Imperial Brands closed at 1,646.20 pence each in London on Thursday, down 2.6%.
By Tapan Panchal; [email protected]
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