Fitch Affirms Alcoa Credit Ratings

Fitch Affirms Alcoa Credit Ratings After Bid Withdrawal, Takes Ratings Off Watch List NEW YORK (AP) -- Fitch Ratings service on Friday said it affirmed the credit ratings of Alcoa Inc. and took the ratings off its negative watch list now that the aluminum producer has withdrawn its bid to acquire a rival. Alcoa formally withdrew its bid for Alcan Inc. late Thursday, after Alcan accepted a competing offer from Rio Tinto PLC. Alcoa holds "A-", or investment grade, issuer default, senior unsecured debt and revolving credit facility ratings, "F2", or good quality, short term issuer default and commercial paper ratings and a "BBB+", or non-investment grade, preferred stock rating. The ratings outlook remains negative, Fitch said. The ratings service also noted that Alcoa will be reinstituting its share repurchase program for up to 10 percent of the company's outstanding stock. Fitch said it first put the company on its ratings watch list after it made the offer to buy Alcan in May. Questions or comments about this story should be directed to the Financial News desk of The Associated Press at 212-621-7190.