...- We expect U.S.-based steel maker Cleveland-Cliffs Inc. will reduce its total adjusted debt balance to about $8 billion (including $5 billion postretirement and other long-term obligations) in the first half of 2022 from about $11 billion in 2020. - We project S&P Global Ratings-adjusted leverage will decline to below 2x by mid-2022 and 2023. - Therefore, we raised our issuer credit rating on Cliffs to 'B+' from 'B'. The outlook is positive. - We raised our issue-level rating on Cliffs' senior secured debt to '##' from '##-'; the recovery rating is '1'. We also raised our issue-level rating on Cliffs' guaranteed unsecured debt to 'B' from '###+' and revised the recovery rating to '5' from '6'. We also raised our issue-level rating on Cliffs' nonguaranteed subordinated debt to 'B-' from '###+'; the recovery rating is '6'. - The positive outlook reflects we could upgrade Cliffs in the next 12 months, if the company sustains adjusted leverage of 2x-3x, even in a more normalized pricing environment,...
