Standard & Poor's Ratings Services today revised its outlook on Rio Tinto PLC and its guaranteed subsidiaries to negative from stable. At the same time, the 'A-/A-2' long- and short-term corporate credit ratings on Rio Tinto were affirmed. "The outlook revision reflects leverage, on Dec. 31, 2012, that was higher than we forecast. In our view, continued, albeit reduced capital expenditure and dividend payments will prevent Rio Tinto from deleveraging, unless it makes large disposals in 2013 and 2014. The negative outlook indicates a one-in-three chance of a downgrade, and may be mitigated by management's commitment to the current rating level, its substantial cost reduction program, and its commitment to reduce leverage, through disposals."
Asian stocks fell to one-month lows on Friday and the yen rebounded broadly as extreme volatility in the Nikkei …