S&P: Chalco on watch

Standard & Poor's said it placed it BBB+ long-term corporate credit rating on Aluminum Corp. of China Ltd. on Creditwatch with negative implications.

The Creditwatch placement came after Chalco's announcement that the company would acquire 47% interest in a joint venture company, with Rio Tinto plc (BBB+/positive/A-2) owning the rest, for the development and operation of the Simandou Project in Guinea, West Africa, for $1.35 billion, the agency said.

"The rating action reflects its view that the stand-alone rating profile of BBB- could be lowered by more than a notch as a result of the proposed acquisition," said S&P credit analyst Judy Kwok-Cheung.

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