Fitch affirms Phelps Dodge

Fitch Ratings said it affirmed Phelps Dodge Corp.'s debt ratings and maintained a stable outlook based on the company's leading position in the copper industry and sound operational and financial management.

Ratings affirmed are the senior unsecured debt ratings at BBB, commercial paper at F2 and convertible preferred stock at BBB-. Fitch also rated Phelps Dodge's $1.1 billion revolving credit facility at BBB.

Results continue to benefit from the recovery in copper and molybdenum prices, which began in earnest in the fourth quarter of 2003. Strong cash generation coupled with capital discipline in 2004 and the first quarter of 2005 allowed repayment of $1.1 billion in debt to $1.0 billion and accumulation of about $0.7 billion in cash to $1.4 billion.

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