CAP S.A.'s focus on lower cost production, combined with higher average iron ore prices, will support more resilient cash flow generation and stronger financial metrics in coming years. We have raised the rating on CAP to 'BB+' from 'BB'. We have removed the ratings from CreditWatch with positive implications. The stable outlook reflects our view that CAP's flexibility to change product mix and focus on operating efficiency will continue to offset further iron ore price volatility and allow the company to continue presenting positive free operating cash flow (FOCF). On April 12, 2017, S&P Global Ratings raised its global-scale rating on CAP S.A. to 'BB+' from 'BB'. At the same time, we raised our issue-level rating on its senior unsecured
