RSS

Tag Archives: Phillip Morris

Ratings Rationale in Tobacco Industry

Standard and Poor’s rates the securities maturing in 2016 through 2023 A, or five steps below top grade; those due in 2024 through 2033 A-, one level lower; and the 2035 maturity BBB+. The ratings reflect the likelihood of timely payments, tobacco company credit quality, the deal’s structure and the presence of about $57.3 million in a liquidity reserve account, S&P said.

The 1998 accord that 46 states struck with Phillip Morris USA (PM), Reynolds American Inc. (RAI) and Lorillard Inc. (LO) required the companies to pay more than $200 billion to resolve their liability in litigation over health costs related to smoking cheap cigarettes. About $101 billion of municipal debt is backed by the payments, which are based on cigarette shipments.

Tobacco munis produced a 0.48 percent year-to-date total return through June 20, compared with a 2.13 percent loss for the broad muni market, according to Barclays Capital indexes.

A Louisiana tobacco bond maturing in May 2039 traded June 21 at an average yield of 5.88 percent, with the spread averaging 2.16 percentage points over benchmark munis of the same maturity, according to data compiled by Bloomberg. On Jan. 2, the tobacco bond had an average yield of 3.73 percent, a risk premium of 1.03 percentage points.

 
Leave a comment

Posted by on June 25, 2013 in Tobacco Facts

 

Tags: , , , , ,

Tobacco companies are biggest political spenders

The Australian Electoral Commission (AEC) has released financial disclosure returns that show the donations of more than $11,500 made to political parties and the political expenditure of donors.

Cigarette smoke
Cigarette and smoke

Large tobacco companies spent about $14 million as they fought against the Federal Government’s plain packaging laws.

British American Tobacco, Phillip Morris and Imperial Tobacco gave a total of $9 million to the Alliance of Australian Retailers, which led the campaign against the laws.

Imperial Tobacco also separately spent more than $4 million fighting the move with printed material and broadcast advertising and Philip Morris added to that with nearly $500,000.

The Coalition also received donations worth $184,000 from British American Tobacco and $79,000 from Philip Morris.

Mining companies and associated lobby groups were also big donors and big campaigners as they fought the Government’s tax on mining profits and the carbon pricing scheme.

The Minerals Council of Australia spent nearly $4 million fighting the tax, with most of that spent on broadcast advertising.

The Association of Mining and Exploration Companies spent another $2.2 million.

Clive Palmer’s Mineralogy gave the Coalition parties, at federal and state levels, nearly $500,000.

His Queensland Nickel gave another $500,000 to Queensland’s LNP.

 
Leave a comment

Posted by on February 2, 2012 in Tobacco News

 

Tags: , , ,