Alcoa Cut to Junk by Moody’s as Aluminum Price Declines
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Alcoa Inc., the largest U.S. aluminum producer, had its credit rating cut to one level below investment grade by Moody’s Investors Service after the metal’s price fell amid a global oversupply.
The long-term rating on Alcoa’s $8.6 billion of debt was lowered by one step to Ba1 from Baa3, Moody’s said in a statement yesterday. The outlook is stable, indicating the rating won’t be reduced again soon.