UPDATE: Morgan Stanley Downgrades Rio Tinto Plc to Equal-Weight on Risk/Reward

Morgan Stanley downgraded Rio Tinto Plc

from Overweight to Equal-weight. Morgan Stanley noted, "Rio's risk-reward ratio no longer looks attractive enough after: 1) a 33% rise in the iron ore price since December; 2) a much lower earnings impact from cost efficiency programs than headline figures suggest; 3) limited tangible changes from its sharpened focus on capital efficiency." Rio Tinto Plc closed at $55.03 on Wednesday.