S&P affirms Alcoa on separation, renaming

S&P said it affirmed its ratings on Alcoa Inc., including the BBB-/A-3 corporate credit ratings.

The outlook remains stable.

Once Alcoa completes the separation and is renamed Arconic, the agency expects to transfer the ratings to Arconic.

S&P said the action follows Alcoa's announcement that it is splitting its upstream and downstream businesses into two separate entities named Alcoa Upstream Corp. (Alcoa Corp.) and Arconic, respectively.

Arconic will be the new name for Alcoa.

"We have reviewed the implications of the proposed business separation and its impact on the pro forma Arconic and expect no changes to our ratings on Alcoa Inc.," S&P credit analyst William Ferara said in a news release.

The agency expects that Arconic will have the same ratings as Alcoa, which include the BBB-/A-3 corporate credit ratings and BBB- senior unsecured rating.

The separation of the businesses and the transfer of the debt ratings to Arconic is expected to be completed by year-end.

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