DBRS Releases Updated Rating Report on Rio Tinto

DBRS has today released an updated report on Rio Tinto plc, Rio Tinto Limited and related subsidiaries (collectively, Rio or the Company) that updates DBRS’s March 18, 2009, report on the Company.

DBRS confirmed the ratings of Rio at A (low), R-1 (low) and Pfd-2 (low) on July 3, 2009, following a $15.2 billion rights issue that allowed the Company to repay approximately $14.8 billion of debt related to the acquisition of Alcan Inc. (Alcan) in late 2007. Prior to the equity issuance, DBRS had expressed concern about Rio’s leverage, which we had considered excessive for the Company’s ratings, as well as the risks associated with its need to refinance $8.9 billion due in 2009 and $9.1 billion due in October 2010 (related to the Alcan acquisition). The equity issuance and debt repayment restored the Company’s credit metrics to levels that are more in line for an A (low)-rated resource company at a low point in the economic cycle. In addition, Rio remains one of the world’s premier mining companies, and continues to restore its credit metrics through asset sales, efficiency measures and prudence in its capital expenditure program.

The Rio rating report issued today is an update of DBRS’s March 18, 2009, report following the significant changes that have taken place in Rio’s financial metrics since then.

To obtain a copy of the report, or the July 3, 2009, press release confirming Rio’s ratings, please click on the links below or contact us at info@dbrs.com.

Notes:
All figures are in Canadian dollars unless otherwise noted.

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

This is a Corporate (Mining) rating.