Strong market positions in iron ore. Strong and stable cash flows. Significant barriers to entry. Improving industry conditions. Concentrated end markets. High-cost producer. The 'BBB-' rating on Cliffs Natural Resources Inc. reflects the combination of what Standard&Poor's considers to be the company's fair business risk profile and intermediate financial risk profile. These assessments reflect its good domestic market position in the North American iron ore market, high barriers to entry, significant cash flow generating ability throughout a cyclical downturn, and the pending acquisition of Consolidated Thompson Iron Mines Ltd. However, our rating also incorporates the highly cyclical nature of iron ore, given its exposure to steel industry conditions; Cliffs' significant customer concentration; and somewhat high cost structure. In
