Aug 03 -
-- In our opinion, Japan Tobacco (JT) has demonstrated market resilience,
improved geographic and product diversity, and strong cash flow generation to
minimize the impact of unfavorable developments in its regulatory environment.
-- Backed by increasing discretionary cash flow, JT will improve
financial ratios for the company even after a planned share buyback this
fiscal year, in our view.
-- We have revised our outlook on JT to positive from stable and affirmed
our 'A+' ratings on the group.
-- The positive outlook reflects our view that JT will likely maintain
its earnings diversity, conservative financial policy, and strong cash flow
generation over the next one to two years
On Aug. 3, 2012, Standard & Poor's Ratings Services revised its outlook on
Japan-based Japan Tobacco (JT) to positive from stable. At the same time, we
affirmed our 'A+' long-term corporate credit and debt ratings on JT and its