Alcoa's (AA) Q2 Results Inline with Expectations, Moody's Says

Moody's Investors Service comments that Alcoa's (NYSE: AA) (Ba1, Positive) 2nd quarter performance was in line with expectations and demonstrates that the company's efforts to transform itself to a lightweight metals value added company continues to gain traction despite headwinds. Additionally, progress in rationalizing its primary metals segment and achieving lower production costs and similar improvements in its alumina segment resulted in these 2 segments continuing to report positive ATOI (after tax operating profit) despite lower LME aluminum prices, the collapse in regional premiums and a lower API (alumina price index). Additionally Alcoa continues to maintain a solid liquidity position. These trends are expected to continue and support the recent change in rating outlook to positive.

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