The decision by the US Food and Drug Administration (FDA) to ban certain flavoured e-cigarette cartridges, subject to them being cleared by the FDA's premarket tobacco application (PMTA) process, is a 'credit positive' move in the long term for the tobacco sector, Moody's has said.
In a sector comment, Moody's noted that the ban is likely to have 'no immediate effect' on the credit quality of the tobacco companies it rates, either because they had already removed these products from sale in anticipation of the FDA's decision, or because they do not sell these products.
