Moody's may cut UST

Moody's Investors Service said it placed UST, Inc. A3 senior unsecured rating under review for possible downgrade following news that it had signed a definitive agreement by which Altria Group, Inc. will acquire UST for $69.50 per share. The transaction is valued at about $11.7 billion and includes Altria's assumption of about $1.3 billion in UST's current debt outstanding. The transaction is subject to approvals.

The company's prime-2 short-term rating is not under review as Moody's said it anticipates that the downgrade will be limited to one notch in line with Altria's current rating of Baa1.

Moody's said its review will focus Altria's assumption the debt, a weaker risk profile and credit metrics of Altria and the successful execution of the acquisition.

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