Fitch affirms Aluminum Corporation of China at 'BBB+'/stable

May 28 (Fitch Ratings) - Fitch Ratings has affirmed Aluminum Corporation of China Limited's (Chalco) Long-Term Foreign Currency (FC) Issuer Default Rating (IDR) at 'BBB+' with Stable Outlook and Long-Term Local Currency (LC) IDR at 'A-' with Negative Outlook. The Short-Term FC and LC IDRs have been affirmed at 'F2'.

…The group's investment in natural resources has expanded following Chinalco's acquisition of a 12% stake in Rio Tinto Plc ('A-'/Stable) in 2008. In 2010, Chalco joined Rio Tinto in the development of Simandou iron ore mine in Guinea and in 2012, made a bid for SouthGobi Resources Ltd, a Mongolian coal company. Domestically, Chalco started developing a domestic coal mine in Gansu Province in 2010. Fitch notes that the company continues to receive strong support from banks in funding these investments, as well as rapid government approval for rail capacity in shipping coal from the China-Mongolia borders...

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