S&P comments on Freeport McMoRan Copper and Gold

The following statement was released by the ratings agency:

NEW YORK, April 17 ? Standard & Poor's Ratings Services said today that Freeport McMoRan Copper & Gold Inc.'s (FCX) (B/Stable/--) first quarter earnings announcement would have no effect on its current ratings or outlook on the company. Although the company's credit measures and free cash flow generation are quite strong, owing to its low cost position, the ratings on Freeport are limited by the sovereign credit rating on the Republic of Indonesia, as the operating risks in Indonesia remain considerable. Freeport posted net income of $49 million for the quarter, a substantial increase from a net loss of $4.2 million a year earlier due to higher-grade ore and higher gold prices. (*)