High pellet premiums, stable cash cost, and an efficient product mix will allow CAP to maintain its resilient cash generation and low leverage, which will provide a cushion for potentially volatile iron ore prices and expected higher capex levels over the next couple of years. We're affirming our 'BB+' global scale corporate credit ratings on the company. We are also affirming the company's 'BB+' issue-level rating on its senior unsecured notes. The stable outlook reflects our view that CAP's focus on improving operating efficiency by adding marginal capacity to its current operations, along with its flexibility to change its product mix to optimize margins. This will allow it to offset iron ore prices and pellet premium volatility, and to continue
