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Fitch Ratings Downgraded Its Rating On Freeport-McMoRan To BBB- With A Negative Outlook

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Shares of Freeport-McMoRan Inc (NYSE: FCX) tumbled to a new 52-week low of $4.24 on Monday. The company's rating was downgraded by Fitch Ratings on Friday afternoon with a Negative outlook.

Fitch Ratings announced after Friday's market close that it downgraded the Issuer Default Rating (IDR) of Freeport-McMoRan from "BBB" to "BB-." The rating agency noted that Freeport-McMoRan's debt commitments of $27.1 billion are affected by the rating chance.

"The downgrade reflects Fitch's view that commodity prices recovery will be prolonged and financial leverage will be elevated before declining to levels consistent with a 'BBB-' rating by the end of 2017," Fitch Ratings noted. "The Negative Outlook reflects the risk of further weakness in commodity prices and pressure on cash flow generation and financial leverage."

Fitch Ratings also noted its downgrade is based on an assumption that copper prices will trade at $2.00 per pound and oil to trade at $45 per barrel in 2016.

Posted-In: Commodities Copper Fitch Ratings Freeport-McMoran ratings Ratings AgencyNews Movers

 

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