S&P lowers Alumina

Standard & Poor's said it lowered Alumina Ltd.'s ratings to BBB- from BBB.

The outlook is stable.

The action reflects concerns that current challenging trading conditions would result in a larger than expected weakening in Alumina's credit metrics, according to the agency.

S&P said it also expects the soft aluminum and alumina prices, high oil and caustic costs, and the strength of the Australian dollar to persist, which could postpone a timely recovery of Alcoa World Alumina and Chemicals' earnings and Alumina's credit metrics in 2012.

Alumina's debt-to-EBITDA ratio could rise substantially above 3x in 2012, compared with 2.2x in 2011, the agency said.

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