DBRS Finalizes A (low) Rating with a Stable Trend on Rio Tinto $3 Billion Debt Issue

DBRS has today finalized its rating of A (low), with a Stable trend, on $1,250 million 1.625% notes due August 21, 2017; $1,000 million 2.875% notes due August 21, 2022; and $750 million 4.125% notes due August 21, 2042 (collectively, the RTF Notes) to be issued by Rio Tinto Finance (USA) plc following the pricing of the RTF Notes and the filing on August 17, 2012, of a prospectus supplement to the Company’s base prospectus dated March 16, 2012, related to the new RTF Notes. The offering of the RTF Notes is expected to close on August 21, 2012, subject to customary closing conditions.

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 provisionally rated the new RTF Notes at A (low) with Stable trend on August 16, 2012. DBRS’s Issuer Rating of Rio Tinto is A (low), with a Stable trend.

The proceeds from the RTF Notes issuance will be used for general corporate purposes of Rio Tinto 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.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Mining Industry (June 2011), which can be found on our website under Methodologies.