Alcoa Debt Rating Lowered

S&P says the move reflects the company's plan to increase its holdings in Elkem ASA

On Oct. 3, 2002, Standard & Poor's lowered its long-term ratings on Alcoa (AA ) and affirmed its short-term ratings on the company. The company's corporate credit rating was lowered to 'A' from 'A+'. The rating action reflected reassessment of the company's financial policy in light of its recent announcements that it is increasing its holdings in Elkem ASA. The downgrade also reflects the likelihood that Alcoa's credit protection measures will not meet acceptable parameters for the former rating given the expectation of continued weakness in the economy and the decline in aluminum prices.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.