DBRS Comments on Rio Tinto’s $1.2 Billion Sale of Aluminum Assets

DBRS notes that today Rio Tinto Plc & Rio Tinto Ltd. (collectively, Rio Tinto or the Company) announced that it has signed an agreement to sell its Alcan Packaging Food Americas division to Bemis Company, Inc. for a total consideration of $1.2 billion, of which $200 million may be received in the form of shares in Bemis Company, Inc. The aluminum assets to be sold were included in the assets-held-for-sale category on Rio Tinto’s balance sheet at year-end 2008 and are considered by DBRS to be non-core to Rio Tinto. DBRS views the sale of non-core assets as a positive development as the Company continues to reduce indebtedness and bring its credit metrics to levels more in line with its A (low) rating. DBRS’s confirmation of the Company at A (low) with a Stable trend on July 3, 2009, incorporated the prospect of ongoing sales of non-core assets.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Mining, which can be found on our website under Methodologies.

This is a Corporate rating.