S&P rates Alcoa notes BBB+

Standard & Poor's said it assigned a BBB+ debt rating to the proposed senior unsecured notes of Alcoa Inc. (BBB+/stable/A-2).

The notes will be issued under the company's shelf registration filed on March 10 in five and 10-year tranches.

Proceeds will be used for general corporate purposes, including reducing outstanding commercial paper, purchasing outstanding common stock, working capital and capital expenditures.

Alcoa's credit quality reflects the company's very strong business position as the largest integrated aluminum producer in the world, with broad product, business and geographic diversity and efficient alumina operations, the agency said.

Ratings also reflect the inherent cyclicality in its upstream and downstream operations, volatile aluminum prices, ongoing cost pressures, a high degree of financial leverage and significant capital expenditures over the next several years, S&P noted.

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