S&P rates Alcoa notes BBB-

Standard & Poor's said that it assigned a BBB- issue-level rating to Alcoa Inc.'s proposed senior note offering due 2021.

The notes will be senior obligations and will rank equally with all of Alcoa's existing and future unsecured and unsubordinated debt, the agency said.

The company intends to use the proceeds from this offering to fund tender offers for any and all of its 5.375% notes due Jan. 13, 2013 and its 6% notes due July 15, 2013.

The ratings on Alcoa (BBB-/stable/A-3) reflect the combination of its satisfactory business risk and significant financial risk profiles, the agency said.

The company is one of the world's largest integrated aluminum producers with broad product, business and geographic diversity and efficient alumina operations, the agency added. The ratings also reflect the inherent cyclicality in its upstream and downstream operations, volatile aluminum prices and its relatively high levels of adjusted financial leverage and debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.