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Bond Market News
Altria Upgraded to BBB+ by Fitch
February 16, 2026
Altria Group was upgraded by a notch to BBB+ from BBB by Fitch. The upgrade reflects Altria’s dominant US cigarette market position, conservative leverage, and its ability to generate strong profitability and cash flow despite regulatory pressure and declining smoking volumes. Altria continues to offset secular cigarette volume declines through pricing power. Tobacco volumes have fallen to low-single digits annually, yet revenue remains roughly stable at about $20bn a year. Free cash flow has averaged $1-2bn annually and Fitch expects it to remain near $1bn over the medium term. Transition to smoke-free products in the US remains slow due to regulatory hurdles and illicit e-vapor competition. Newer products still contribute to only low-single-digit revenue, though FDA approvals and international expansion could support future growth, Fitch noted. In addition Altria’s conservative financial policy and its 8.1% stake in Anheuser-Busch InBev provide financial flexibility, supporting the rating.
Altria’s bonds traded stable with its 5.25% 2035s at 101.86, yielding 5%.
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