...- We expect U.S.-based steel maker Cleveland-Cliffs Inc. will use most of the cash flow generated in 2021 to reduce debt outstanding (by about $2 billion). - We now project Cliffs' adjusted leverage (including pensions and other long-term obligations) will decline to just under 2x from our previous expectation of 3x-4x for fiscal year-end 2021. - We raised our issuer credit rating on Cliffs to 'B' from 'B-'. The outlook is positive. - We raised the issue-level rating on Cliffs' senior secured debt to '##-' from 'B' and revised the recovery rating to '1' from '2'. We also raised the issue-level rating on Cliffs' guaranteed unsecured and nonguaranteed subordinated debt to '###+' from '###'. The '6' recovery rating is unchanged. - The positive outlook reflects the potential of an upgrade of Cliffs within 12 months assuming the company continues reducing debt. We expect that $2 billion lower debt and a spike in earnings will improve adjusted debt to EBITDA to about 2x in 2021, with a further...
