DBRS Assigns A (low) Rating with a Stable Trend to Rio Tinto $2 Billion Debt Issue

DBRS has today assigned a rating of A (low), with a Stable trend, to the issue by Rio Tinto Finance (USA) Limited (RT Finance (USA) or the Company) of $500 million of 1.875% five-year notes, $1 billion of 3.5% ten-year notes and $500 million of 5.2% 30-year notes (collectively, the RTF Notes) to finance its purchase of approximately $1.9 billion of its 5.875% notes due July 15, 2013, launched October 20, 2010. Full and unconditional guarantees of the principal, interest and any other additional amounts payable with respect to the RTF Notes are given by Rio Tinto Plc & Rio Tinto Ltd. (collectively, Rio Tinto). DBRS’s Issuer Rating of Rio Tinto is A (low), with a Stable trend.

The RTF Notes are being issued under a prospectus supplement to the Company’s base prospectus dated April 14, 2009, and filed with the U.S. Securities and Exchange Commission (SEC). The proceeds of the RTF Notes issuance will be used by RT Finance (USA) in part to fund its tender offer launched October 20, 2010, to purchase up to $2.5 billion of its 5.875% notes due July 15, 2013, or for general corporate purposes of RT Finance (USA) or Rio Tinto.

The RTF Notes and guarantees are not secured by any of the Company’s or Rio Tinto’s property or assets and will rank equally with all other unsecured and unsubordinated indebtedness. Since Rio Tinto is a holding company and currently conducts its operations through subsidiaries, payments on the guarantees are effectively subordinated to the other liabilities of those subsidiaries.

The RTF Notes will be redeemable at the option of RT Finance (USA) or Rio Tinto, in whole or in part, at any time at a price equal to the greater of (1) 100% of the principal amount of the RTF Notes being redeemed plus accrued interest to the date of redemption or (2) a calculated redemption amount.

The RTF Notes will be governed by the laws of the State of New York and an application will be made to list the RTF Notes on the New York Stock Exchange.

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.