Moody's may lower Alcoa

Moody's Investors Service said it placed Alcoa Inc.'s Baa1 senior unsecured ratings and its Prime 2 short-term ratings under review for possible downgrade.

The review is prompted by Moody's expectation that Alcoa's mid-term performance is likely to be adversely impacted by weak end markets, with weakness deepening in a number of segments on a global basis, the agency said.

According to Moody's, the company also faces still elevated although improving cash costs, and aluminum prices remain under pressure as exchange inventory stocks grow.

Moody's said it expects difficult market and operating conditions to continue through 2009.

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