Metalnewsnet 22 Feb :

Fitch Ratings has upgraded Rio Tinto Ltd's long term credit rating after the global miner reduced debt and on expectations that China will keep buying commodities.

Rio's long term issuer default ratings and senior unsecured ratings were upgraded to A- from BBB+, Fitch said in a statement dated February 19.

"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 industrials team senior director Peter Archbold said in the statement.

Fitch said Rio's credit rating upgrade did not incorporate any potential benefits that could come from the formation of an iron ore joint venture with BHP Billiton Ltd in Western Australia.

Under the arrangement, Rio would receive about $US5.8 billion ($A6.43 billion) in an equalisation payment, subject to adjustments, Fitch said.

Fitch said it did not expect Rio to use the full equalisation payment for debt reduction, as some part of it would go towards capital investment.

Fitch maintained its stable outlook for Rio.

(From the west)