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Moody's reviews Alcoa over downgrade

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December 19 2012, 7:09PM

Aluminium producer Alcoa is being reviewed by ratings agency Moody's for a possible downgrade.

Moody's said it was looking at changing Alcoa's credit rating from Baa1 to Baa3.

"The review reflects the challenging headwinds given the decline in aluminum prices that has occurred, dropping almost 22 per cent to an average of 92 cents per pound from the comparable 2011 average, and the adverse impact this has had on earnings performance and earnings based debt protection metrics," Moody's said in a statement.

Alcoa is involved in the production and management of aluminum, fabricated aluminum, and alumina.