Strong market positions in domestic iron ore; Significant barriers to entry; and Geographically diverse operations. Concentrated end markets; and High cost producer. The rating on Cleveland-based mining and natural resources company Cliffs Natural Resources Inc. reflects the combination of what Standard&Poor's Ratings Services considers to be the company's "satisfactory" 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, and significant cash-flow generating ability throughout a cycle. However, our rating also incorporates the highly cyclical nature of the iron ore business (given its exposure to the volatile steel industry), Cliffs' significant customer concentration, and the company's relatively high cost structure. Under
