Chicago 22/01/2016 - Alcoa has responded to Moody's placing of the aluminium producer on review by stating the company is well-situated to the cyclical downturn by implementing its already announced company separation.
The downturn in the commodity mining sector is an "unprecedented shift" for the mining industry, prompting Moody's to put several global miners under review for a credit downgrade - including Alcoa - to "recalibrate the ratings in the mining portfolio to align with the fundamental shift in the credit conditions of the global mining sector".
In September, Alcoa responded to the Chinese growth slowdown by splitting into two independent, publicly traded companies. The downstream unit will target an investment grade rating while the upstream division will attempt to acquire a strong non-investment grade rating, the company said on Friday.
"Actions in relation to the separation are being completed with a focus on creating shareholder value," Alcoa said in a release, adding that the company remains on track to complete the split by the second half of this year.
Alcoa share prices were last trading down 13 cents or 1.8 percent at $6.96 on the New York Stock Exchange.
(Editing by Mark Shaw)