Fitch raises Freeport McMoRan rating on debt plans

NEW YORK, Oct 26 (Reuters) - Fitch Ratings on Friday raised its ratings for Freeport McMoRan Copper & Gold Inc (FCX.N), citing the copper producer's expected debt reduction efforts.

Freeport, which operates mines in the United States, Peru, Chile and Indonesia, said on Wednesday that third-quarter profit more than doubled. For details, see [ID:nN24548668].

Fitch upgraded Freeport's issuer default and debt ratings one notch to "BB-plus," the highest junk rating, from "BB." It also raised the ratings of Freeport subsidiary Phelps Dodge to the same level.

The ratings firm said it "expects total debt to be $7.3 billion at year-end given repayment of bank debt through internally generated cash and the proceeds from the sale of its international wire and cable business."

The outlook on Freeport remains positive, which means another upgrade is possible in the next one to two years.

Freeport's 8.25 percent notes due in 2015 were trading at 209 basis points over Treasuries on Friday, according to MarketAxess.