Fitch has changed the outlook of Philip Morris International to Stable.

Fitch Ratings has revised the outlook for Philip Morris International, Inc. (NYSE:PM) from negative to stable as of March 12, 2025. The rating agency also affirmed the company's Long-Term Issuer Default Rating (IDR) and senior unsecured long-term rating at 'A'. This decision reflects significant progress made by Philip Morris in reducing debt and improving cash flow, with a target to achieve a net debt/EBITDA ratio of 2x by 2026.

Fitch anticipates that as the scale of smokeless products expands and additional cost efficiencies are realized, Philip Morris will maintain its strong operational performance. The company has already implemented a significant portion of its $2 billion cost efficiency plan for 2024-2026, with $750 million already realized. Despite focusing on substantial progressive dividend distributions, this limits cash flow for debt reduction. Fitch expects the company to resume share repurchases while maintaining leverage below 2x starting in 2027.