DBRS Assigns A (low) Rating with Stable Trend to Rio Tinto Finance (USA) plc $3.0 Billion Debt Issue

DBRS has today assigned a rating of A (low), with a Stable trend, to a $3.0 billion multi-tranche debt issue by Rio Tinto Finance (USA) plc (RT Finance (USA) or the Company), which will be unconditionally and irrevocably guaranteed by Rio Tinto plc and Rio Tinto Limited (collectively, Rio Tinto). The debt to be issued by the Company (the new RT Finance (USA) Debt) consists of the following: $250 million of floating rate notes due June 19, 2015; $500 million of floating notes due June 17, 2016; $1.0 billion of 1.375% fixed rate notes due June 17, 2016 and $1.25 billion of 2.25% fixed rate notes due December 14, 2018. DBRS expects that the proceeds of the new RT Finance (USA) Debt will be used for general corporate purposes.

DBRS views the issuance of the new RT Finance (USA) Debt as a prudent component of Rio Tinto’s ongoing funding program.

Full and unconditional guarantees of the principal, interest, premium, if any, and any other additional amounts payable in respect of the new RT Finance (USA) Debt are to be given by Rio Tinto plc and Rio Tinto Limited.

The new RT Finance (USA) Debt and the related guarantees will not be secured by any of RT Finance (USA) 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 new RT Finance (USA) Debt and the related guarantees will be governed by the laws of the State of New York.

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.