Altria Downgraded to Baa2 by Moody's, Citing Litigation Cash Flow Risks

Moody’s Investors Service downgraded Altria Group Inc.’s long-term senior unsecured debt rating to Baa2 from Baa1.

The agency also lowered the company’s short-term rating to Prime-3. Moody’s placed all Altria ratings under review for a possible further downgrade.

Potential litigation impacts on cash flow drove the rating action. These concerns highlight reduced financial flexibility for the tobacco giant. Altria’s rating outlook remains negative.