Fitch Places Freeport-McMoRan Copper & Gold's Ratings on Watch Negative

  Fitch Places Freeport-McMoRan Copper & Gold's Ratings on Watch Negative

Business Wire

CHICAGO -- December 05, 2012

Fitch Ratings has placed the ratings of Freeport-McMoRan Copper & Gold Inc.
(NYSE: FCX) and its subsidiary Freeport-McMoRan Corporation (FMC) formerly
known as Phelps Dodge Corporation on Rating Watch Negative following its
announcement that it will acquire Plains Exploration & Production Company
(NYSE: PXP) and McMoRan Exploration Co. (NYSE: MMR). A full list of ratings
follows this release.

The transaction is expected to give rise to $10 billion in additional
borrowing and $6.9 billion in assumed debt for a total consolidated debt of
$20 billion. Fitch expects pro forma debt to EBITDA to be at least 2 times
based on Fitch's commodity price assumptions.

Fitch expects to resolve the watch when more details of the transaction are
finalized. Fitch believes the likely outcome, based on the structure of the
transaction as announced and current commodity price assumptions, would be a
one notch downgrade.

Fitch has placed the following ratings on Watch Negative:

FCX

--Issuer Default Rating 'BBB';

--$1.5 billion unsecured bank revolver 'BBB';

--$500 million 1.40% senior notes due Feb. 13, 2015 'BBB';

--$500 million 2.15% senior notes due March 1, 2017 'BBB';

--$2 billion 3.55% senior notes due March 1, 2022 'BBB'.

FMC

--7.125% senior unsecured debentures due 2027 'BBB';

--9.50% senior unsecured notes due 2031 'BBB';

--6.125% senior unsecured notes due 2034 'BBB'.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 8, 2012).

Applicable Criteria and Related Research:

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

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Contact:

Fitch Ratings
Primary Analyst:
Monica M. Bonar, +1-212-908-0579
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst:
Christopher M. Collins, CFA, +1-312-368-3196
Director
or
Committee Chairperson:
Sean T. Sexton, CFA, +1-312-368-3130
Managing Director
or
Brian Bertsch, +1-212-908-0549
Media Relations, New York
brian.bertsch@fitchratings.com
 
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