Moody’s: Freeport-McMoRan view to positive

Moody's Investors Service said it changed Freeport-McMoRan Inc.'s outlook to positive from negative.

At the same time, the agency affirmed the B1 corporate family rating, B1-PD probability of default rating and the B1 senior unsecured note ratings of Freeport-McMoRan and Freeport-McMoRan Oil and Gas LLC (FM O&G). The rated debt instruments at Freeport-McMoRan and FM O&G are cross-guaranteed by the respective holding companies.

The Ba2 senior unsecured ratings of Freeport Minerals Corp., which have a downstream guarantee from Freeport-McMoRan, were also affirmed.

Freeport-McMoRan’s speculative grade liquidity rating was changed to SGL-1 from SGL-2.

Moody’s said the positive outlook acknowledges Freeport-McMoRan’s success in executing its strategic objectives surrounding asset sales in order to delever its balance sheet as well as continuing to reduce capital expenditures and costs.

The outlook change also considers the company's $1.5 billion at-the-market equity offering completed in late November, which will further strengthen liquidity and debt reduction capacity, the agency added.

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