S&P Global Ratings

View Analyst
Contact Information

Swedish Match AB Ratings Placed On CreditWatch Positive On Acquisition Offer By Philip Morris International Inc.

    • Philip Morris International Inc. (PMI) announced on May 11, 2022 that it made a public cash offer of Swedish krona (SEK) 106 per share to fully acquire Swedish Match AB (SW). SW's board of directors recommended shareholders accept the offer.
    • We expect the transaction to close by the end of 2022, pending SW's shareholder approval, regulatory approvals, and other customary closing conditions. PMI's offer is conditional on share tender representing more than 90% of the total number of outstanding shares in SW.
    • We placed our 'BBB/A-2' ratings on Swedish Match and our 'BBB' rating on its debt on CreditWatch with positive implications, reflecting our view that the transaction could enhance the company's credit profile, given the acquisition by a higher-rated entity. We expect PMI to redeem or assume all SW's debt at close. We expect to resolve the CreditWatch placement as soon as we have clarity regarding the offer's acceptance.
    DUBLIN (S&P Global Ratings) May 13, 2022--S&P Global Ratings today took the 
    rating actions listed above.
    
    The positive CreditWatch placement reflects our view that SW will have a more 
    favorable credit profile than as a stand-alone company. At transaction close, 
    we expect PMI will repay or assume all SW's debt.
    
    We expect to resolve the CreditWatch as soon as we have clarity regarding the 
    offer's acceptance. We anticipate PMI will redeem or assume any outstanding 
    debt, and we will reevaluate the ratings at that time. If the transaction does 
    not complete due to regulatory or other reasons, we will likely remove the 
    'BBB' rating from CreditWatch and affirm it with a stable outlook, in line 
    with the rating prior to the acquisition's announcement.
    
    ESG credit indicators: E-2, S-3, G-2
    
    
    Related Criteria
    
    Related Research
    

    Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. A description of each of S&P Global Ratings' rating categories is contained in "S&P Global Ratings Definitions" at https://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352 Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. Alternatively, call one of the following S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; or Stockholm (46) 8-440-5914

    Regulatory Disclosures For Each Credit Rating Including Ratings List Table

    Disclosures include requirements relating to press releases or reports published in accordance with Article 10(1), 10(2), and 10(5), and Annex I, Section D, I, 1, 2, 2a, 4, and 5. These requirements are available by rating via the link titled "Regulatory Disclosure" and include, but are not limited to:

    • Key Elements Underlying The Credit Rating
    • ESG Credit Factors
    • Solicited Or Unsolicited Status
    • Analysts Primarily Responsible For The Credit Rating
    • Office Responsible For The Credit Rating
    • Materials Used In The Credit Rating Process
    • Criteria Applied
    • Models Applied, Loss, And Cash Flow Analysis Performed
    • Scenario Analysis
    • Sensitivity Analysis
    • Risk Warning, Understanding Credit Rating Categorizations, And Criteria
    • Rated Entity Notification
    • Ancillary And Additional Services
    • Attributes And Limitations Of The Credit Rating
    • Information Specific To Structured Finance And Securitization Instruments

    No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

    Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

    To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

    S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

    S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com(subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.

    Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: research_request@spglobal.com.



    Contact the analysts: