S&P affirms Alumina, outlook down to negative

Standard & Poor's said it affirmed its BBB+ long-term corporate credit rating on Alumina Ltd. and revised the outlook on the rating to negative from stable.

The outlook revision follows Alumina's announcement of higher-than-anticipated capital expenditure on its Brazilian development projects, which are held through the group's 40% interest in the Alcoa World Alumina and Chemicals joint venture, the agency said.

"This announcement comes at a time when Alumina's financial metrics have been tracking at levels weak for the BBB+ rating and during a period when the group has been negatively affected by gas supply disruptions in Western Australia," S&P credit analyst May Zhong said.

"The negative rating outlook is unlikely to revert to stable until Alumina's financial metrics are returned to a level supportive of the rating and after execution risks with key development projects have sufficiently abated."

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