The wall street journal once reported,”Philip Morres Cos., in an aggressive move to boost its stock price, announced a $6 billion stock buyback plan and raised its quarterly dividend nearly 20% . the announcement, which came after a regularly scheduled board meeting, raised the company’s stock to a 52-week high . separately, rating agencies standard $ Poor’s rating group and Moody’s investors service Inc, confirmed their ratings on Philip Morris’s debt. While both agencies said Philip Morris is continuing to generated strong cash flow, Moody’s . . . placed Philip Morris at the low end of its current rating level.”
Required
Explain how this announcement can increase the stock price of Philip Morris (now known as Altria Group) while at the same time reduce its credit rating.