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

DBRS has today assigned a provisional rating of A (low), with a Stable trend, to the debt to be issued by Rio Tinto Finance (USA) plc (the RTF Notes). Rio Tinto Finance (USA) plc (RTF (USA) plc or the Company) is an indirect, wholly owned finance subsidiary of Rio Tinto plc. Full and unconditional guarantees of the principal, interest and any other additional amounts payable with respect to the RTF Notes are to be given by Rio Tinto plc and Rio Tinto Limited (collectively, Rio Tinto). DBRS’s Issuer Rating of Rio Tinto is A (low), with a Stable trend.

The RTF Notes are to be issued under a prospectus supplement to the Company’s base prospectus dated March 16, 2012, 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) plc or Rio Tinto, including but not limited to the repayment of $500 million of 4 7/8% notes due 2012 issued by Alcan Inc., which mature on September 15, 2012, and to fund Rio Tinto’s previously announced acquisition of an additional 37% interest in the South Africa-based mineral sands mining and processing company, Richards Bay Minerals (RBM), expected to be completed later in 2012, subject to regulatory approvals. Rio Tinto will have a 74% interest in RBM following the completion of the acquisition.

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 issued under an indenture dated July 2, 2001, and as subsequently amended and restated among Rio Tinto Finance (USA) Limited, RTF (USA) plc, Rio Tinto plc, Rio Tinto Limited and The Bank of New York Mellon. The RTF Notes, the indenture and the guarantees are 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.

The provisional rating is based on RTF (USA) plc’s base debt prospectus dated March 16, 2012, and the draft Preliminary Prospectus Supplement dated August 16, 2012, as well as Rio Tinto’s public security document filings, including its first half (2012) earnings report, 2011 annual report, along with other information provided by Rio Tinto to DBRS as of August 16, 2012. The assignment of final ratings is subject to receipt by DBRS of pricing of the new RTF Notes and filing of a final supplementary prospectus that is consistent with that which DBRS has already reviewed.

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.