Global credit rating agency Fitch Ratings has announced that it has upgraded the long-term credit rating of Australian iron ore giant Rio Tinto to 'A' from 'A-', with a stable outlook.
According to Fitch, the upgrade of Rio Tinto's credit rating reflects material financial flexibility gained through increased cash flow generation and asset disposals in a supportive economic environment. Rio Tinto's management is pursuing a value-over-volume strategy and Fitch expects earnings growth to mainly come from productivity improvements, technological innovation, cost control and development projects from the company’s own pipeline.