U.S.–based iron ore producer Cleveland-Cliffs Inc. has entered into a definitive agreement to acquire all issued and outstanding shares of AK Steel common stock. Based on the Dec. 2, 2019, closing prices, AK Steel shareholders will receive total consideration of approximately $1.1 billion in Cliffs stock. We are placing all of our ratings on Cleveland-Cliffs, including the 'B+' issuer credit rating, on CreditWatch with negative implications. This reflects our expectations that the combined company will have lower margins, along with adjusted leverage above our current 4x downside trigger. We expect to resolve the CreditWatch when we have further clarity on the company's prospective debt structure, cash flow and leverage, which we expect will be within 90 days. The CreditWatch placement
