NEW YORK—Credit-ratings agency Fitch Ratings on Friday said it affirmed the "BBB-" issuer-default rating on cigarette maker Reynolds American Inc.
Fitch also downgraded the company's guaranteed bank credit facility to "BBB-" from "BBB" and affirmed its guaranteed notes rating at "BBB-".
A "BBB-" rating is the lowest investment grade rating, one step above "junk-bond" status. "BBB" is one notch above that.
The ratings outlook is stable.
The affirmation reflects the company's ability to generate "substantial" cash flow from operations, Fitch said. The ratings actions affect about $4.6 billion of debt.
Shares of Reynolds American fell $1.07, or 2.2 percent, to close at $46.60, after hitting a new 12-month low of $46.53 earlier in the session.
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