Fitch gives Southern Peru Copper notes BB+

Fitch Ratings said it upgraded the foreign currency rating of Southern Peru Copper Corp. (SPCC) to BB+ from BB and downgraded its local currency rating to BB+ from BBB-.

Fitch has also upgraded the foreign and local currency ratings of SPCC's direct subsidiary, Minera Mexico, SA de CV to BB+ from BB-, outlook positive, as well as its Yankee bonds due in 2008 and 2028.

Fitch said it also assigned a preliminary foreign currency rating of BB+ to SPCC's proposed $600 million to $680 million 30-year bond issuance whose proceeds will be used to pay off SPCC's and Minera Mexico's outstanding syndicated loans of $200 million and $480 million, respectively.

The agency added that the foreign currency rating upgrade reflects enhanced geographic diversification of operations and cash flow following the completion of SPCC's acquisition of affiliate company Minera Mexico from SPCC's parent company Americas Mining Corp.

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