Reuters
Alumina Ltd. ratings lowered to 'BBB-'
Edited by : AL CIRCLE
1 min read
On Aug. 29, 2012, Standard & Poor's Ratings Services lowered its ratings on Australian mining company Alumina Ltd. (Alumina) to 'BBB-', from 'BBB'. The outlook is stable.
They view that the current trading conditions in the alumina and aluminum industries are more challenging than at the beginning of the year for AWAC, driven by declining alumina and aluminum prices, the strong Australian dollar, and still elevated oil and caustic costs.
-- Weak industry conditions are expected to persist in the near term, which will result in lower than expected earnings from AWAC and therefore a lower dividend to Alumina in 2012.
-- The outlook on the rating is stable, as they expect that AWAC would adjust its operations to respond to market conditions or that AWAC or Alumina would exercise its financial levers to arrest the downward trend in Alumina's credit metrics. They also expected that AWAC's EBITDA per metric ton to recover slightly in 2013 and more in 2014.
They view that the current trading conditions in the alumina and aluminum industries are more challenging than at the beginning of the year for AWAC, driven by declining alumina and aluminum prices, the strong Australian dollar, and still elevated oil and caustic costs.
-- Weak industry conditions are expected to persist in the near term, which will result in lower than expected earnings from AWAC and therefore a lower dividend to Alumina in 2012.
-- The outlook on the rating is stable, as they expect that AWAC would adjust its operations to respond to market conditions or that AWAC or Alumina would exercise its financial levers to arrest the downward trend in Alumina's credit metrics. They also expected that AWAC's EBITDA per metric ton to recover slightly in 2013 and more in 2014.
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