ALTRIA GROUP, INC. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Interest Rate Risk The fair value of our long-term debt, all of which is fixed-rate debt, is subject to fluctuations resulting primarily from changes in market interest rates. The following table provides the fair value of our long-term debt and the change in fair value based on a 1% increase or decrease in market interest rates at June 30, 2024 and December 31, 2023: (in billions) June 30, 2024 December 31, 2023 Fair value $ 22.7 $ 24.4 Decrease in fair value from a 1% increase in market interest rates 1.8 1.9 Increase in fair value from a 1% decrease in market interest rates 2.1 2.2 We expect interest rates on borrowings under our Credit Agreement to be based on the Term Secured Overnight Financing Rate, plus a percentage based on the higher of the ratings of our long-term senior unsecured debt from Moody’s and S&P. The applicable percentage for borrowings under our Credit Agreement at June 30, 2024 was 1.0% based on our long-term senior unsecured debt ratings on that date. At June 30, 2024 and December 31, 2023, we had no borrowings under our Credit Agreement.