Research Update: Cleveland-Cliffs Inc. Outlook Revised To Stable From Negative, 'B' Corporate Credit Rating Affirmed On Increasing EBITDA

We expect U.S.-based iron ore pellets producer Cleveland-Cliffs Inc. to benefit from increasing demand for iron ore and wider pellet premiums in 2018. We are also forecasting that the company's Port of Toledo hot briquette iron (HBI) plant will begin to contribute incremental gross profit in 2020. In addition, we have increased our 2018 price assumption for iron ore by $10 to $65 per dry metric ton. Therefore, we are revising our outlook on Cleveland-Cliffs to stable from negative and are affirming the 'B' corporate credit rating. The stable outlook reflects that we anticipate the company's adjusted debt leverage to remain between 5x and 7x for full-year 2018 despite our expectation that iron ore prices will be lower than they

...+ We expect U.S.-based iron ore pellets producer Cleveland-Cliffs Inc. to benefit from increasing demand for iron ore and wider pellet premiums in 2018. + We are also forecasting that the company's Port of Toledo hot briquette iron (HBI) plant will begin to contribute incremental gross profit in 2020. + In addition, we have increased our 2018 price assumption for iron ore by $10 to $65 per dry metric ton. + Therefore, we are revising our outlook on Cleveland-Cliffs to stable from negative and are affirming the 'B' corporate credit rating. + The stable outlook reflects that we anticipate the company's adjusted debt leverage to remain between 5x and 7x for full-year 2018 despite our expectation that iron ore prices will be lower than they were last year....

Research Update