Breaking News


Alcoa Outlook Revised to Negative by S&P

Alcoa Inc. (AA), the biggest U.S. aluminum producer, had its credit rating outlook revised by Standard & Poor’s Ratings Services to negative after a slump in the price of the metal.

At current aluminum prices, Alcoa’s cashflow and debt are “well outside our expectations” for the company’s BBB- corporate credit rating, Standard & Poor’s said in a statement today. The rating is the lowest investment-grade level.

“We expect the company to continue to post lower-than- anticipated credit measures because of continuing weak aluminum prices,” S&P said in the statement. “The company’s credit measures will remain weak at least through 2013, reflecting current weak prices, sluggish European demand, and slower-than- expected growth in China thus far this year.”

Moody’s Investors Service Inc. said in December it was putting Alcoa’s $8.6 billion of debt on review for downgrade.

Aluminum for delivery in three months on the London Metal Exchange has dropped 10 percent in the last 12 months as a global oversupply of the lightweight metal and slowing growth in China, the biggest consumer of the metal, weighs on prices.

To contact the reporter on this story: Sonja Elmquist in New York at

To contact the editor responsible for this story: Simon Casey at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.