Canada-based iron ore miner Baffinland Iron Mines Corp.?s (Baffinland) credit facilities, including its $212.5 million revolving credit facility (RCF) and $75 million EDC term credit facility, are current, indicating heightened refinancing risk. We also expect Baffinland will generate modest forecast free operating cash flow (FOCF) deficits over the next couple of years. Given the significant near-term debt maturities, we lowered our ratings on Baffinland to 'CCC' from 'B-', including our issuer credit rating on the company. The outlook is negative, primarily reflecting Baffinland's sizable upcoming debt maturities, which we believe increase the risk of a distressed exchange or default occurring over the coming months. In our view, there is also a possibility the company will extend its revolver under terms
