Fitch rates Freeport-McMoRan notes BBB

Fitch Ratings said it assigned a BBB rating to Freeport-McMoRan Copper & Gold Inc.'s new senior notes.

The proceeds will be used to redeem the outstanding $3 billion of 8.375% senior notes due 2017.

The transaction lowers interest expenses, brings $500 million in debt maturities forward to 2015 and stretches $2 billion of maturities to 2022, Fitch said.

The company has an issuer default rating of BBB, along with a BBB rating on its $1.5 billion secured bank revolver, BBB rating on its $500 million 1.4% senior notes due Feb. 13, 2015, BBB rating on its $500 million 2.15% senior notes due March 1, 2017, BBB rating on its $2 billion 3.55% senior notes due March 1, 2022 and BBB rating on its $3 billion 8.375% senior notes due 2017.

Also affirmed includes FMC's 7.125% senior unsecured debentures due 2027 at BBB, 9.5% senior unsecured notes due 2031 at BBB and 6.125% senior unsecured notes due 2034 at BBB.

The outlook is stable.

The ratings reflect the company's leading position in the industry, strong liquidity and sound operational and financial management, Fitch said.

Operations benefit from low average costs, large scale and long lived reserves, the agency said.

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