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 2.25% five-year notes due September 20, 2016; $1.15 billion of 3.75% ten-year notes due September 20, 2021; and $350 million of 5.20% thirty-year notes due November 2, 2040 (collectively, the RTF Notes). Notably, the $350 million of thirty-year notes constitute a further issuance of the $800 million 5.2% notes due 2040 that are currently outstanding. 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 and 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 June 21, 2011, and filed with the U.S. Securities and Exchange Commission (SEC). The proceeds from the RTF Notes issuance will be used 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 respective property or assets and will rank equally with all other unsecured and unsubordinated indebtedness. Since Rio Tinto plc and Rio Tinto Limited are holding companies and currently conduct their 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 Companies in the Mining Industry, which can be found on our website under Methodologies.