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By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

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2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

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Rating Action:

Moody's places Rio Tinto group ratings and all subsidiary ratings (A3 sr. unsecured) on review for upgrade

01 Nov 2018

New York, November 01, 2018 -- Moody's Investors Service ("Moody's") placed all ratings (A3 senior unsecured and P-2 short-term) of the Rio Tinto group rated entities (Rio Tinto) on review for upgrade. The review results from the strengthening Rio Tinto's metrics attributable to its debt reduction in recent years under its liability management program, the reduction in costs from the group's focus on productivity and logistics, which helps to mitigate cost creep being seen in input costs. A recovery in prices over 2017 and 2018 has also benefitted the company.

On Review for Upgrade:

..Issuer: Rio Tinto (Commercial Paper) Limited

....Backed Senior Unsecured Commercial Paper, Placed on Review for Upgrade, currently P-2

..Issuer: Rio Tinto (Commercial Paper) plc

....Backed Senior Unsecured Commercial Paper, Placed on Review for Upgrade, currently P-2

..Issuer: Rio Tinto America Inc.

.... Backed Issuer Rating, Placed on Review for Upgrade, currently A3

....Backed Senior Unsecured Commercial Paper, Placed on Review for Upgrade, currently P-2

..Issuer: Rio Tinto Finance (USA) Limited

....Backed Senior Unsecured Medium-Term Note Program, Placed on Review for Upgrade, currently (P)A3

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Upgrade, currently A3

....Backed Senior Unsecured Shelf, Placed on Review for Upgrade, currently (P)A3

..Issuer: Rio Tinto Finance (USA) plc

....Backed Senior Unsecured Medium-Term Note Program, Placed on Review for Upgrade, currently (P)A3

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Upgrade, currently A3

....Backed Senior Unsecured Shelf, Placed on Review for Upgrade, currently (P)A3

..Issuer: Rio Tinto Finance Canada Inc

....Backed Senior Unsecured Commercial Paper, Placed on Review for Upgrade, currently P-2

..Issuer: Rio Tinto Finance Limited

....Backed Senior Unsecured Commercial Paper, Placed on Review for Upgrade, currently P-2

..Issuer: Rio Tinto Finance plc

.... Backed Issuer Rating, Placed on Review for Upgrade, currently A3

.... Backed Senior Unsecured Commercial Paper, Placed on Review for Upgrade, currently P-2

.... Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Upgrade, currently A3

..Issuer: Rio Tinto Limited

.... Issuer Rating, Placed on Review for Upgrade, currently A3

..Issuer: Rio Tinto plc

.... Issuer Rating, Placed on Review for Upgrade, currently A3

Outlook Actions:

..Issuer: Rio Tinto America Inc.

....Outlook, Changed To Rating Under Review From Stable

..Issuer: Rio Tinto Finance (USA) Limited

....Outlook, Changed To Rating Under Review From Stable

..Issuer: Rio Tinto Finance (USA) plc

....Outlook, Changed To Rating Under Review From Stable

..Issuer: Rio Tinto Finance plc

....Outlook, Changed To Rating Under Review From Stable

..Issuer: Rio Tinto Limited

....Outlook, Changed To Rating Under Review From Stable

..Issuer: Rio Tinto plc

....Outlook, Changed To Rating Under Review From Stable

RATINGS RATIONALE

The review will consider the Rio Tinto group's asset base, commodity diversification, cost structure, and strategic growth objectives. Given the volatility in the key markets in which the group participates, the review will also assess credit metrics and cash flow at the low end of our price sensitivities to determine the resilience of the group's performance through different price points. A further focus of the review will be the group's commitment to a single A financial policy with a strong discipline in capital investments and M&A activity.

Rio Tinto's A3 senior unsecured rating considers a number of key attributes of the group including its large scale and low cost operations, diversity of mineral and metals exposures and leading positions in a number of these markets, and geographical diversity. A further factor is the delveraging undertaken over the last several years contributing to improved debt protection metrics. These actions together with changes in the dividend policy and a lower capital expenditure run rate have better positioned the group to exhibit stronger performance than seen in the last downturn.

Factors that could lead to an upgrade include ability to sustain debt/EBITDA of no more than 1.5x, an EBIT margin of at least 25%, and EBIT/interest of at least 11x. Other considerations would include continued maintenance of a solid liquidity profile, a manageable debt maturity profile and a clear commitment to a single A financial policy with strong discipline in capital investments and M&A activity.

The principal methodology used in these ratings was Mining published in September 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The Rio Tinto group ranks as one of the world's largest diversified mining groups from both a geographic and product perspective with substantial interests in iron ore, ranking among the top three in the seaborne markets, bauxite, alumina and aluminum, and copper, and important holdings in uranium, diamonds, and industrial minerals (borax, titanium dioxide feedstock, salt). Rio Tinto operates under a dual listed company structure, allowing both shareholders of Rio Tinto plc (UK) and Rio Tinto Limited (Australia) an interest in a single economic entity. For the twelve months ended June 30, 2018 the Rio Tinto group generated revenues of roughly $40.6 billion.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Carol Cowan
Senior Vice President
Corporate Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Brian Oak
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

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Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

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MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
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