Fitch ups Freeport-McMoRan

Fitch Ratings said it upgraded the issuer default rating of Freeport-McMoRan Copper & Gold Inc. to BBB from BBB-, along with its $1 billion secured bank revolver to BBB from BBB-, $500 million PT Freeport Indonesia/Freeport-McMoRan secured bank revolver to BBB from BBB-, unsecured notes due 2015 and 2017 to BBB from BBB- and 7% convertible notes due 2011 to BBB from BBB-.

The agency also upgraded subsidiary, Phelps Dodge Corp.'s 8¾% senior unsecured notes due 2011 to BBB from BBB-, 7.125% senior unsecured debentures due 2027 to BBB from BBB-, 9½% senior unsecured notes due 2031 to BBB from BBB- and 6.125% senior unsecured notes due 2034 to BBB from BBB-.

The outlook is stable.

The ratings reflect debt reductions, the elimination of preferred shares and expectations for continued strong free cash flow, Fitch said.

The ratings benefit from the company's leading position in the industry, strong liquidity and sound operational and financial management, the agency said.

The outlook considers the company's cautious approach to capital expenditures, dividends and financial leverage, Fitch said, and the outlook on the copper market.

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