S&P ups McMoRan outlook to positive

Standard & Poor's said it revised its outlook on McMoRan Exploration Co. to positive from stable and affirmed its ratings, including the B- corporate credit rating on the company.

The positive outlook reflects the company's strengthened drilling program, especially at the Flatrock field, as well as the robust cash flows associated with this production, which should result in a significant decrease in leverage by the end of 2008, the agency said.

S&P noted that the corporate credit rating on McMoRan Exploration reflects the company's high-risk deep-shelf exploration strategy in the Gulf of Mexico, unproven ability to profitably add proved reserves and high, but improving leverage.

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