Fitch assigns Alcoa notes BBB+

Fitch Ratings said it assigned an BBB+ rating to the following new senior notes from Alcoa Inc.: $750 million of senior unsecured notes due 2013 and $750 million senior unsecured notes due 2018.

The outlook is stable.

Fitch said that it downgraded Alcoa's ratings on April 23 as a result of higher than expected debt levels and financial leverage.

Fitch noted that it currently rates Alcoa as follows: long-term issuer default rating BBB+, senior unsecured debt BBB+, $3 billion revolving credit facilities BBB+, preferred stock BBB, short-term issuer default rating F2 and commercial paper F2.

Proceeds of the notes are to be used for general corporate purposes which may include reduction of outstanding commercial paper of $1.2 billion at June 30, the agency said, noting that Alcoa ratings reflect the company's leading position in the industry, its strength in low-cost alumina production and the operating flexibility afforded by the scope of its operations.

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