S&P upgrades Alumina

S&P said it raised the long-term issuer credit rating and associated issue rating on Alumina Ltd. and its senior unsecured debt to BBB- from BB+.

The outlook is stable.

S&P said it raised the ratings to reflect the improved earnings and cash flows of Alumina's joint venture, Alcoa World Alumina and Chemicals, as well as the stronger credit quality of Alcoa World's operating company, Alcoa Corp.

The agency also said it expects both Alumina and Alcoa World to maintain a low level of debt, which is key to their resilience amid volatile commodity prices.

Strong aluminum and alumina prices also are driving a surge in earnings and cash flow for Alcoa World, enabling the joint venture to bolster its dividend payment in 2018, S&P said.

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