S&P: Alcoa unaffected

Standard & Poor's said that its ratings and outlook on Alcoa Inc. are unchanged by the company's recent announcement that it plans to enhance its liquidity during the cyclical downturn through several actions.

The agency said that these include:

• The issuance of 150 million shares of common stock, with expected proceeds of about $860 million;

• The issuance of $250 million convertible notes due 2014;

• The reduction of its quarterly dividend to $.03 per share from $.17 per share, preserving more than $400 million of cash annually; and

• Enhanced operational efficiencies, including reduced capital spending, and procurement efficiencies to enhance performance and improve its cost structure.

At the same time, the agency said it assigned a BBB- rating to Alcoa's proposed $250 million convertible notes due 2014 and the notes will be issued under the company's shelf registration for well-known seasoned issuers filed on March 10.

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