Research Update: Cleveland-Cliffs Inc. Outlook Revised To Positive On Strong Expected Cash Flow; 'B-' Rating Affirmed - S&P Global Ratings’ Credit Research

Research Update: Cleveland-Cliffs Inc. Outlook Revised To Positive On Strong Expected Cash Flow; 'B-' Rating Affirmed

Research Update: Cleveland-Cliffs Inc. Outlook Revised To Positive On Strong Expected Cash Flow; 'B-' Rating Affirmed - S&P Global Ratings’ Credit Research
Research Update: Cleveland-Cliffs Inc. Outlook Revised To Positive On Strong Expected Cash Flow; 'B-' Rating Affirmed
Published Mar 15, 2021
9 pages (3526 words) — Published Mar 15, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

U.S.-based iron ore producer Cleveland-Cliffs Inc. has added significant size and scale through the transformative acquisitions of AK Steel and ArcelorMittal USA, which were completed in 2020. In addition, steel demand, high steel and iron ore prices will support strong cash flow generation for the vertically integrated steel maker. S&P Global Ratings is affirming its 'B-' issuer credit rating on Cleveland-Cliffs and revising the outlook to positive from negative. We are affirming our 'B' issue-level rating on Cliffs' senior secured debt and our 'CCC' issue-level rating on Cliffs' guaranteed unsecured and nonguaranteed subordinated debt. The recovery ratings remain '2' and '6', respectively. The positive outlook reflects our expectation that the company could generate about $1 billion in free operating cash

  
Brief Excerpt:

...- U.S.-based iron ore producer Cleveland-Cliffs Inc. has added significant size and scale through the transformative acquisitions of AK Steel and ArcelorMittal USA, which were completed in 2020. - In addition, steel demand, high steel and iron ore prices will support strong cash flow generation for the vertically integrated steel maker. - S&P Global Ratings is affirming its 'B-' issuer credit rating on Cleveland-Cliffs and revising the outlook to positive from negative. - We are affirming our 'B' issue-level rating on Cliffs' senior secured debt and our '###' issue-level rating on Cliffs' guaranteed unsecured and nonguaranteed subordinated debt. The recovery ratings remain '2' and '6', respectively. - The positive outlook reflects our expectation that the company could generate about $1 billion in free operating cash flow, majority of which we anticipate the company will use for debt repayment. We expect Cleveland-Cliffs will end 2021 with adjusted leverage of 3x-4x....

  
Report Type:

Research Update

Ticker
CLF
Issuer
Cleveland-Cliffs Inc.
GICS
Steel (15104050)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Cleveland-Cliffs Inc. Outlook Revised To Positive On Strong Expected Cash Flow; 'B-' Rating Affirmed" Mar 15, 2021. Alacra Store. May 23, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Cleveland-Cliffs-Inc-Outlook-Revised-To-Positive-On-Strong-Expected-Cash-Flow-B-Rating-Affirmed-2611428>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Cleveland-Cliffs Inc. Outlook Revised To Positive On Strong Expected Cash Flow; 'B-' Rating Affirmed Mar 15, 2021. New York, NY: Alacra Store. Retrieved May 23, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Cleveland-Cliffs-Inc-Outlook-Revised-To-Positive-On-Strong-Expected-Cash-Flow-B-Rating-Affirmed-2611428>
  
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