DBRS lifts Alcoa to stable

DBRS said it changed the trend on Alcoa Inc. to stable from negative following ongoing strengthening of the company’s business profile and ongoing improvement in its weak credit metrics.

The agency also said it confirmed the company’s issuer ratings and senior unsecured debt ratings.

Alcoa has enhanced its business profile over the last several years through investing in new production capacity in its alumina business unit and in its primary metals unit, DBRS said, which adds new low-cost capacity and closes old high-cost capacity.

But improvements in Alcoa’s upstream businesses have been overshadowed by very competitive alumina and aluminum markets, the agency said.

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