Alcoa (AA) Debt Rating Confirmed by Fitch Ratings

Alcoa Inc. (NYSE:AA) had its debt rating confirmed Tuesday at the investment grade level of "BBB-" by Fitch Ratings. Alcoa's rating outlook was boosted to "Stable" from "Negative."

Fitch analysts said the company's debt should drop by the end of 2011 as earnings and cash flow generation continue to improve with economic recovery and the company continues with capital discipline and cost control.

The "Stable" outlook reflects Fitch's view that Alcoa will have sufficient cash to repay current debt maturities over the next two year.

The ratings would be on review with negative implications should liquidity weaken, earnings be worse than expected or total debt fail to decline, Fitch added. Better-than-anticipated earnings and debt repayment could result in a review of the outlook with positive implications.

Alcoa closed Tuesday at $16.54, falling $0.74, or 4.3 percent.