Moody’s shifts Freeport view to stable

Moody’s Investors Service said it changed the outlooks for Freeport-McMoRan Inc. (FCX) and Freeport Minerals Corp. to stable from negative.

“The change in outlook to stable reflects the significant improvement in FCX’s performance in the second half of 2020 on the strong recovery in copper prices, high gold prices, which have contributed to an improved cost position in Indonesia, continued improvement in copper and gold production and sales as the transition to underground mining in Indonesia continues to ramp up, and the restoration of production at Cerro Verde following the Peruvian government-mandated curtailment in March 2020 due to the coronavirus,” said Carol Cowan, a Moody’s senior vice president and lead analyst for FCX,” in a press release.

Moody’s also affirmed FCX’s Ba1 corporate family rating, Ba1-PD probability of default rating and its Ba1 senior unsecured notes rating. The Baa2 guaranteed senior unsecured notes rating for Freeport Minerals was also affirmed. The speculative liquidity grade rating remains SGL-1.

“The continued maintenance of an excellent liquidity profile also supports the outlook change and the rating affirmation,” added Cowan.

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