Tobacco Winners & Losers: Altria Group

Lawmakers have approved a tax hike for cigarettes that is expected to curb smoking further and crimp profits for tobacco makers.

Approval of the State Children's Health Insurance Program proposes to raise the federal excise tax on cigarettes to $1 per pack, a 61 cent raise.

The bill -- passed by the Senate on Thursday -- is likely to be signed into law by President Barack Obama after differences are resolved between the House and Senate versions of the bill, a Fitch Ratings analyst said.

Fitch cites a Congressional Budget Office estimate that cigarette sales volume declines 2.5% to 5% for every 10% increase in prices. So Fitch projects that the proposed increase could lead to a 3.5% to 7% decline in the volume of cigarettes sold. That assumes an average retail price of $4.45 per pack....