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BRIEF-Standard & Poor places Rio Tinto 'A-/A-2' ratings on Creditwatch negative

Published 02/02/2016, 08:41 am
Updated 02/02/2016, 08:50 am
© Reuters. BRIEF-Standard & Poor places Rio Tinto 'A-/A-2' ratings on Creditwatch negative
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Feb 2 (Reuters) - Standard & Poor (S&P):

* S&P - Rio Tinto (L:RIO) 'A-/A-2' ratings placed on creditwatch negative on commodity price pressures and demand uncertainties

* S&P - Also placed on creditwatch negative the long-term issue ratings on the debt instruments issued or guaranteed by Rio Tinto

* S&P - now forecast Rio Tinto's Funds From Operations (FFO) to debt could fall to 30%-35% over 2016-2017

* S&P - Believe commodity prices will remain very volatile while the impact of China's slowdown plays out

* S&P - "Creditwatch placement reflects the possibility that we might lower the rating by one notch after the earnings release in early February"

* S&P - "At this stage, we have limited visibility as to how the company might respond to the current challenging environment"

* S&P -"Given rio's conservative balance sheet,may decide to affirm rating if future cash flow performance remains sufficiently robust and covers capex and dividends"

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