Moody's upgrades Phelps Dodge rating

International credit ratings agency Moody's Investors Service has upgraded Phoenix-based copper giant Phelps Dodge's (NYSE: PD) senior unsecured ratings to Baa2 from Baa3, Moody's said in a statement. The outlook is stable. The upgrade is based on the company's improved capital structure and operating performance over the past three years, accelerated by improved copper and molybdenum prices over the past 18 months, it said. The Baa2 rating reflects Phelps Dodge's strong capital structure as evidenced by its debt-to-capitalization ratio of 18% at the end of 2004 compared to 51% at the end of 2001 as well as its good liquidity position, Moody's said. However the agency cautioned that Phelps Dodge still has a relatively high cost structure, is exposed to increases in fuel and power costs and has a high capex commitment. Moody's also upgraded the prospective rating under Phelps Dodge's US$600mn shelf filing. For Moody's full report on Phelps Dodge, paste the following link in your browser: http://www.bnamericas.com/rc_search_detail.xsql?id_documento=66242&Tx_idioma=I