Rating triggers

Certain of Gallaher's debt instruments contain covenants that if the Group's credit rating is downgraded below BBB minus in the case of Standard & Poor's or below Baa3 in the case of Moody's, additional interest accrues from the next interest period at the rate of 1.25 percentage points, in the case of certain bonds issued by the Group⁽¹⁾, and 1.0 percentage point in the case of the Group's current committed syndicated bank facility.

In the event that both credit ratings are subsequently raised or reaffirmed to BBB minus and Baa3, respectively, the additional interest no longer accrues from the next interest period.

1. €250m issued in February 2003, €800 issued in June 2004, and €500m issued in October 2006.

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