S&P: Chalco view to stable

Standard & Poor's said it revised its outlook on Aluminum Corp. Of China Ltd. (Chalco) to stable from negative.

The BBB- foreign currency long-term corporate credit rating on the company was affirmed.

In line with the outlook revision, the agency raised its long-term Greater China regional scale rating on Chalco to cnA- from cnBBB+.

"The outlook revision reflects our view that Chalco's operations will improve gradually over the next 12-18 months as management cuts costs, increases operating efficiency, and sells non-core assets," S&P credit analyst Jian Cheng said in a news release.

"We also believe that the company's weak operating performance has bottomed out."

Chalco's business risk profile is "satisfactory" and its financial risk profile is "highly leveraged," the agency said.

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