Bloomberg quoted National Australia Bank Ltd said Rio Tinto Group the world third largest mining company may have its credit ratings raised by Standard & Poor Corp and Moody’s Investors Service because higher iron ore prices.

The bank said there is increased confidence that annual contract iron ore prices may rise by plus 40% this year and this will further underwrite an upgrade. Standard & Poor and Moody may increase their ratings within six months.

Fitch Ratings raised its rating on Rio Tinto on February 19th to A-from BBB+ after the London based company cut its debt and as China demand for raw materials increases.

Fitch said Rio Tinto agreed last year to form an iron ore joint venture with BHP Billiton Ltd and will receive about USD 5.8 billion as an equalization payment. Rio may use the money to support higher spending rather than reduce debt.