Moody’s revises Rio Tinto to stable

Moody's Investors Service said it changed the outlook for all rated entities within the Rio Tinto Group, including Rio Tinto Ltd., Rio Tinto plc, Rio Tinto America Inc., Rio Tinto Finance (USA) Ltd. and Rio Tinto Finance (USA) plc, to stable from negative and affirmed the Baa1 senior unsecured ratings and P-2 short-term ratings.

Moody’s said the stable outlook reflects its view that while prices for principal commodities comprising the company's business will continue at lower levels for a longer time frame, the agency expects Rio Tinto's performance to slowly improve from the weak levels evidenced in 2015, particularly in the second half.

This considers the company's ongoing ability to drive out costs, its reduced capital expenditures and reduced dividend payout going forward, Moody’s added.

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