Credit agency Fitch Ratings has upgraded Rio Tinto’s outlook to Positive from Stable.
Rio Tinto's long-term issuer default rating has been reaffirmed at A-. Fitch noted that revision was due to the company’s significant absolute debt reduction, which dropped by 7.8 billion USD from the end of 2015 to June 30, 2017.
Fitch predicts that the price of raw materials will be stable, and that free cash flow will be allocated to Rio Tinto's shareholders and that it will increase capital expenditure on high-value projects.
It was noted that Rio Tinto’s financial policy for the next one to three years will play an important role in further revisions. Share prices for Rio Tinto on the Australian Stock Exchange have been increasing by two percent since early December 2017.
Credit agency Fitch Ratings has upgraded Rio Tinto’s outlook to Positive from Stable.
Rio Tinto's long-term issuer default rating has been reaffirmed at A-. Fitch noted that revision was due to the company’s significant absolute debt reduction, which dropped by 7.8 billion USD from the end of 2015 to June 30, 2017.
Fitch predicts that the price of raw materials will be stable, and that free cash flow will be allocated to Rio Tinto's shareholders and that it will increase capital expenditure on high-value projects.
It was noted that Rio Tinto’s financial policy for the next one to three years will play an important role in further revisions. Share prices for Rio Tinto on the Australian Stock Exchange have been increasing by two percent since early December 2017.