Fitch affirms Alcoa

Fitch Ratings said it affirmed Alcoa Inc.'s issuer default rating at BBB-, senior unsecured debt at BBB-, $3.25 billion revolving credit facility at BBB-, preferred stock at BB, short-term issuer default rating at F3, commercial paper at F3.

The outlook remains negative.

The ratings reflect a view that cash balances and free cash flow should be ample to repay scheduled maturities of debt in 2010 during a period of weak recovery, Fitch said.

The company's guidance is that it will be free cash flow positive in 2010 and the $900 million investment due over the next four years for its share of the Ma'aden joint venture will come from cash from operations, the agency said.

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