Alcoa (AA) Says Value-Add Company Investment Grade Rating Not Contingent for Separation

Alcoa (NYSE: AA) disclosed the following on Friday:

In response to a Moody’s report issued on January 21, 2016, Alcoa Inc. (“Alcoa”) believes the Moody’s view is largely a reflection of its perspective of aluminum pricing. Alcoa has taken and continues to take aggressive actions to position the Upstream business as a cost-competitive industry leader. Alcoa’s focus remains on strengthening both the Upstream and Value-Add businesses to succeed as standalone companies.

On September 28, 2015, Alcoa issued a press release announcing its plan to separate into two independent, publicly traded companies: an Upstream Company and a Value-Add Company. Among other things, the press release indicated that both entities will be capitalized prudently, with the Value-Add Company targeting an investment grade rating and the Upstream Company a strong non-investment grade rating.

Actions in relation to the separation are being completed with a focus on creating shareholder value. While Alcoa continues to target an investment grade rating for the Value-Add Company, the separation is not contingent upon the Value-Add Company attaining an investment grade rating. Alcoa remains on track to complete its separation in the second half of 2016.

You May Also Be Interested In

• Apollo Global Management (APO) to Buy US Silica (SLCA) for $15.50/sh Cash
• loanDepot (LDI) Appoints Jeff Wilkish as Regional VP for New England
• Akanda Corp (AKAN) Appoints Christopher Cooper to its Board