MUMBAI (Thomson Financial) - Standard & Poor's Rating Services said it has revised its outlooks on Freeport-McMoRan Copper & Gold Inc and its recently acquired Phelps Dodge Corp to positive from stable and affirmed all ratings, including the 'BB+' corporate credit ratings.
'The outlook revision reflects our expectation that the Freeport-McMoRan should be able to reduce its borrowings... in a reasonable time frame to warrant an upgrade of the corporate credit rating to investment grade,' S&P said.
The agency said robust commodity markets should help the company reduce unadjusted debt levels to about 7-7.2 bln usd from the current level of about 9.7 bln usd.
S&P also said the company's vast reserve base, diversified production stream, and good pipeline of developmental projects support the current rating.
'On the other hand,' S&P added, 'Freeport remains burdened by exposure to Indonesia and the inherent volatility of the commodity markets. If the company does not reduce debt in a timely manner and/or a meaningful decline in commodity prices occurs, impeding the company's progress in reducing debt, we could revise the outlook to stable.'
TFN.newsdesk@thomson.com jro COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
'The outlook revision reflects our expectation that the Freeport-McMoRan should be able to reduce its borrowings... in a reasonable time frame to warrant an upgrade of the corporate credit rating to investment grade,' S&P said.
The agency said robust commodity markets should help the company reduce unadjusted debt levels to about 7-7.2 bln usd from the current level of about 9.7 bln usd.
S&P also said the company's vast reserve base, diversified production stream, and good pipeline of developmental projects support the current rating.
'On the other hand,' S&P added, 'Freeport remains burdened by exposure to Indonesia and the inherent volatility of the commodity markets. If the company does not reduce debt in a timely manner and/or a meaningful decline in commodity prices occurs, impeding the company's progress in reducing debt, we could revise the outlook to stable.'
TFN.newsdesk@thomson.com jro COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.