UBS Warburg raises Freeport rating

Rating firm UBS Warburg on Wednesday said it raised its rating on mining company Freeport-McMoRan Copper and Gold Inc. to ``buy'' from ``hold'' on lower risk, following the company's move to amend its credit facilities Monday.

Analyst Brian MacArthur said New-Orleans based Freeport's refinancing of its credit will reduce overall risk, but added that the mining company, which operates the giant Grasberg mine in Indonesia, still carries greater-than-average political risk.

MacArthur said there would be a dilution with the refinancing, but the markets have already factored this in.(*)