Rio Tinto has been given a credit rating upgrade by Fitch Ratings.
The miner received an upgrade to its long term credit rating after it reduced outstanding debt and on the back of China’s growing demand for resources.
“Through a combination of management action on reducing debt and China’s still insatiable demand for commodities, Rio Tinto has emerged from the financial crisis with its core operating strengths intact and with further improvement in its financial profile expected in 2010,” Fitch’s London industrials senior director Peter Archbold said.
Fitch upgraded its credit rating to an A- from a BBB+ for its long term issuer default ratings and senior unsecured ratings.
Short term IDRs have also been affirmed at F2.
However the rating upgrade did not include any potential benefits from the upcoming Pilbara iron ore joint venture with fellow miner BHP Billiton.
Fitch projected a ‘stable outlook’ for Rio, with liquidity in 2010 expected to be strong.