S&P affirms Rio Tinto

Standard & Poor's said it affirmed the BBB long-term corporate credit and debt ratings on Rio Tinto plc and Rio Tinto Ltd., following the announcement of a planned $19.5 billion cash injection from Aluminum Corp. of China.

S&P placed the short-term rating of A-3 on CreditWatch with positive implications.

The outlook remains negative.

"We regard the announced transaction to be overall positive for Rio Tinto's near-term credit quality, and as a step forward in strengthening liquidity and lowering the group's large debt burden," S&P analyst Alex Herbert said in a statement.

The agency said it plans to affirm the long-term BBB rating, raise the short-term rating to A-2 from A-3 and to revise the outlook to stable from negative.

"However, we believe the transaction may also involve potentially negative consequences for Rio Tinto's business profile. In our view, the sale of meaningful minority stakes in key assets is complex and involves execution and integration challenges," Herbert noted.

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