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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. -- Ignore unavailable to you. Want to Upgrade?

To: alan holman who wrote (27708)	2/2/1998 10:41:00 PM
From: alan holman	Respond to of 28369

Freeport-McMoRan Rtgs Lowered, Remain On S&P Watch Neg PR Newswire - February 02, 1998 13:57 FCX %MNG %RTG V%PRN P%PRN NEW YORK, Feb. 2 /PRNewswire/ -- Standard & Poor's today lowered its ratings on Freeport-McMoRan Copper & Gold Inc. and P.T. ALatief Freeport Finance Co. B.V. (see table below). The ratings remain on CreditWatch with negative implications, where they were placed on Dec. 31, 1997. The downgrade reflects continuing concerns relating to Freeport-McMoRan's exposure to the heightened political and fiscal risks of the Republic of Indonesia (single-'B' long-term foreign currency rating, CreditWatch negative), as the company's primary asset is the Grasberg complex, a massive copper and gold mining operation located in Irian Jaya, Indonesia. Yet, Standard & Poor's believes certain factors afford some measure of protection against the company's exposure to sovereign risk, as follows: -- The company serves primarily export markets and generates revenues in U.S. dollars; and -- The Indonesian government has strong incentives to let Freeport-McMoRan continue to prosper, given the government's 9.4% ownership stake, the company's status as one of Indonesia's largest employers and its single largest payer of taxes and royalties, and the company's particular importance as a non-oil exporter. Standard & Poor's will continue to monitor the impact of Republic of Indonesia's increased risks on the company's business position and financial profile. -- CreditWire