Moody's raises Freeport-McMoran Copper & Gold: Report

Moody's Investors Service said on Wednesday it raised Freeport-McMoRan Copper & Gold Inc.'s ratings, citing the return of its PT Freeport Indonesia (PT Freeport) unit to normal mining operations, Reuters reported.

Moody's raised Freeport-McMoRan's senior unsecured debt ratings to 'B1' from 'B2'. In addition, the senior implied rating was raised to 'Ba3' from 'B2' and the rating on Freeport's rated preferred securities to 'B3' from 'Caa2.' The rating outlook is stable, Moody's said.

Freeport's 2004 results have been negatively impacted by a curtailment of production at its PT Freeport unit, resulting from two rock slides that occurred in the fourth quarter of 2003. The upgrade also reflects anticipated strong cash flow and debt protection measurements at the company, Moody's said.

Freeport, through its subsidiary PT-FI, controls one of the world?s biggest copper and gold mining complex in Indonesia?s easternmost province of Papua. (*)