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.

Bank of America (NYSE:BAC), Citigroup (NYSE:C) Upgraded by Fitch Ratings

With the overall outlook for 2011 looking better for Bank of America (NYSE:BAC) and Citigroup (NYSE:C), along with healthier credit trends, Fitch Ratings upgraded the two giant banks.

Also noted by analyst Joseph Scott, in the case of Bank of America, was "the bank's diversified franchise and revenue mix, along with its large domestic presence in retail banking, wealth management and investment banking."

For Citigroup, it was their strong presence in high-growth emerging markets.

For individual ratings, the two banks were both upgraded from "C" to "B/C."

Concerning unsupported long- and short-term issuer default ratings, they were also both boosted from "BBB+" and "F2" to "A-" and "F1."

Bank of America closed Wednesday's trading session at $13.55, down $0.08, or 0.59 percent. Citigroup closed at $4.81, dropping $0.01, or 0.21 percent.

Fitch Ratings Downgrades Sprint (NYSE:S)

Sprint Nextel Corp. (NYSE:S) was downgraded by Fitch Ratings, as their credit risk has risen because of their plans to modernize their network.

Ratings lowered on Sprint by the agency included its issuer default rating; senior unsecured notes, which were dropped from "BB" to "BB-"; and its senior unsecured credit facility.

The ratings outlook for Sprint is negative, as they phase out Nextel over the next couple of years.

Sprint closed Tuesday at $4.38, up $0.01, or 0.23 percent.

Freeport (NYSE:FCX) Gets Debt Upgraded from Fitch Ratings

Freeport-McMoRan Copper & Gold (NYSE:FCX) had its debt rating upgraded by Fitch Ratings, with its issuer default rating being raised from "BBB-" to "BBB."

Fitch based its upgrade on the reduction of debt, elimination of preferred shares, and the increased outlook for the generation of cash flow by the company.

Freeport is a major producer of gold and the largest publicly traded copper company.

The debt ratings increase included Freeport's subsidiary Phelps Dodge Corp. Fitch sees the debt ratings outlook for Freeport as remaining stable.

Freeport closed Tuesday at $97.66, gaining $1.42, or 1.48 percent.