DBRS Assigns A (low) Rating to Rio Tinto $2.0 Billion Debt Issue, Stable Trend

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 $700 million of 2.5% five-year notes maturing May 20, 2016, $1.0 billion of 4.125% ten-year notes maturing May 20,2021, and $300 million of 5.2% notes maturing November 2, 2040, which constitute a further issuance of the 5.2% thirty-year notes that were issued by RT Finance (USA) on November 2, 2010 (collectively, the new RTF Notes) to be used for general corporate purposes. Full and unconditional guarantees of the principal, interest and any other additional amounts payable with respect to the new 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. DBRS does not expect the additional debt to materially change Rio Tinto’s credit metrics.

The five- and ten-year new RTF Notes are being issued under a prospectus supplement to the Company’s base prospectus dated May 17, 2011, and filed with the U.S. Securities and Exchange Commission (SEC). The proceeds of the new RTF Notes issuance will be used by RT Finance (USA) or Rio Tinto for general corporate purposes.

The new 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 new 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 new RTF Notes will be governed by the laws of the State of New York and an application will be made to list the five- and ten-year new RTF Notes on the New York Stock Exchange, where the existing 5.2% notes maturing November 2, 2040, are listed.

Rio Tinto is one of the world’s premier mining companies, and has significantly restored its credit metrics since the 2008/2009 recession through asset sales, equity issuance, efficiency measures and prudence in its capital expenditure program. Rio Tinto had record earnings of $14.3 billion in 2010 and is embarking on a significant organic growth program in 2011 and will potentially make further, modest-size acquisitions.

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.