Good domestic market position; Favorable industry conditions; Experienced management team; Good pro forma credit metrics for the rating; and Significant discretionary cash flow-generating ability. Dependent upon the U.S. steel industry; High cost structure compared with peers; and Integration risk associated with pending Alpha Natural Resources acquisition. The rating on Cleveland-Cliffs Inc. reflects the combined company's strong domestic market position in both the iron ore and metallurgical coal markets, currently solid industry conditions, and good pro forma credit metrics for the rating. Standard&Poor's Ratings Services believes that pro forma for the pending acquisition of Alpha Natural Resources, Cliffs will generate significant near-term discretionary cash flow, so as to enable the company to quickly reduce debt balances while pursuing previously
