Rio Tinto still on negative watch following agreed offer for Alcan - S&P

Standard & Poor's Ratings Services said it kept its 'A+' long-term and 'A-1' short-term corporate credit ratings on mining group Rio Tinto PLC, Rio Tinto Ltd, and its subsidiaries on negative watch, following the group's announcement of an agreed 38 bln usd cash offer for Canada-based Alcan Inc. S&P's also assigned its 'A+' senior unsecured long-term debt rating to the 40 bln usd bank loan facility raised by Rio Tinto PLC to be used to finance the acquisition, and placed it on negative watch. 'The creditwatch status continues to reflect the substantial increase in the enlarged group's debt burden resulting from the acquisition of Alcan, and uncertainty regarding the extent and timeliness of a subsequent debt reduction program,' said S&P's credit analyst Alex Herbert.