Fitch Ratings Upgrades Term Issuer Default Rating on British American Tobacco (BTI)

British American Tobacco p.l.c. (NYSE:BTI) is one of the Most Profitable Large Cap Stocks to Invest in Now. On March 13, Fitch Ratings upgraded its long-term Issuer Default Rating on British American Tobacco p.l.c. (NYSE:BTI) from BBB+ to A-. The firm maintained its stable outlook and removed the company from Under Criteria Observations.

​The rating firm noted that they expect the company’s annual post-dividend free cash flow to be around GBP 1.8 billion and GBP 2.4 billion from 2026 to 2028. This is expected to be driven by low to mid-single digit organic revenue growth, while EBITDA margins are expected to rise to 48% by 2028, from 47% in 2025. The firm noted that EBITDA margin expansion will be driven by double-digit NGP growth, which reached GBP 442 million in 2025, reflecting 80% year-over-year growth..

​Moreover, the company announced GBP 1.3 billion in 2026 share buybacks, while Fitch expects around GBP 3.2 billion more share buybacks in 2027 to 2028. The rating firm noted that the updated rating places British American Tobacco p.l.c. (NYSE:BTI) one position below Philip Morris’ rating.

​British American Tobacco (NYSE:BTI) provides tobacco and nicotine products to consumers in the US, Europe, Latin America, Canada, the Asia-Pacific, the Middle East, Central Asia, Caucasus, and Africa.

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