New York, June 26, 2014 -- Moody's Investors Service comments that Alcoa's$2.85 billion acquisition of Firth Rixson (from Oaktree Capital), a leading supplier to the jet engine component industry, has no impact on the company's Ba1 corporate family rating (CFR). Alcoa has indicated that it intends to fund the acquisition with $2.35 billion in cash and $500 million in common stock. The transaction also has a potential $150 million earn-out. The company indicates that the cash portion of the transaction will be funded by a combination of debt and equity-content securities. Although releveraging could slow metric improvement in the short-term, the acquisition is expected to increase the percentage of value added earnings over the medium to longer term and contribute to improving performance.

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