Research Update: Baffinland Iron Mines Corp. Outlook Revised To Stable From Negative On Improved Liquidity; Ratings Affirmed

Iron ore prices have run up steadily since May 2020, improving visibility on cash flow and materially abating liquidity risk. We now expect Baffinland Iron Mines Corp. to generate significantly stronger credit measures and robust cash flow on its base operations while growth spending is stalled due to ongoing permit hearing delays. As a result, on March 19, 2021, S&P Global Ratings revised its outlook on Baffinland to stable from negative, and affirmed its 'B-' issuer credit rating on the company and its 'B-' issue-level rating on Baffinland's senior secured notes. The '4' recovery rating on the notes is unchanged. The stable outlook reflects our expectation for positive free operating cash flow (FOCF) generation to strengthen liquidity while the company's

...- Iron ore prices have run up steadily since May 2020, improving visibility on cash flow and materially abating liquidity risk. - We now expect Baffinland Iron Mines Corp. to generate significantly stronger credit measures and robust cash flow on its base operations while growth spending is stalled due to ongoing permit hearing delays. - As a result, on March 19, 2021, S&P Global Ratings revised its outlook on Baffinland to stable from negative, and affirmed its 'B-' issuer credit rating on the company and its 'B-' issue-level rating on Baffinland's senior secured notes. The '4' recovery rating on the notes is unchanged. - The stable outlook reflects our expectation for positive free operating cash flow (FOCF) generation to strengthen liquidity while the company's rail expansion project remains on hold as Baffinland awaits the outcome from permit hearings....

Research Update