Research Update: Cleveland-Cliffs Inc. Upgraded To 'B+' On Strong Cash Flow; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Cleveland-Cliffs Inc. Upgraded To 'B+' On Strong Cash Flow; Outlook Stable

Research Update: Cleveland-Cliffs Inc. Upgraded To 'B+' On Strong Cash Flow; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Cleveland-Cliffs Inc. Upgraded To 'B+' On Strong Cash Flow; Outlook Stable
Published Apr 15, 2019
8 pages (2902 words) — Published Apr 15, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Cleveland-based iron ore producer Cleveland-Cliffs Inc. continues to benefit from elevated iron ore prices, and we anticipate the company's Port of Toledo hot briquette iron (HBI) plant will contribute incremental gross profit starting in 2020. In addition, we have increased our iron ore price assumption for the rest of 2019 by $10 to $75 per dry metric ton (dmt). As a result, we are raising our issuer credit rating on Cliffs to 'B+' from 'B'. At the same time, we are raising the issue-level ratings on Cliffs' $392 million in senior secured notes due in 2024 to 'BB' from 'BB-', the various senior unsecured guaranteed notes to 'B+' from 'B', and the senior unsecured nonguaranteed debt to 'B-' from 'CCC+'.

  
Brief Excerpt:

...- Cleveland-based iron ore producer Cleveland-Cliffs Inc. continues to benefit from elevated iron ore prices, and we anticipate the company's Port of Toledo hot briquette iron (HBI) plant will contribute incremental gross profit starting in 2020. - In addition, we have increased our iron ore price assumption for the rest of 2019 by $10 to $75 per dry metric ton (dmt). - As a result, we are raising our issuer credit rating on Cliffs to 'B+' from 'B'. - At the same time, we are raising the issue-level ratings on Cliffs' $392 million in senior secured notes due in 2024 to '##' from '##-', the various senior unsecured guaranteed notes to 'B+' from 'B', and the senior unsecured nonguaranteed debt to 'B-' from '###+'. - The stable outlook reflects our expectation that Cliffs' adjusted leverage will remain 3x¡4x over the next year even if iron ore prices fall slightly....

  
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. Upgraded To 'B+' On Strong Cash Flow; Outlook Stable" Apr 15, 2019. Alacra Store. May 23, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Cleveland-Cliffs-Inc-Upgraded-To-B-On-Strong-Cash-Flow-Outlook-Stable-2226076>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Cleveland-Cliffs Inc. Upgraded To 'B+' On Strong Cash Flow; Outlook Stable Apr 15, 2019. New York, NY: Alacra Store. Retrieved May 23, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Cleveland-Cliffs-Inc-Upgraded-To-B-On-Strong-Cash-Flow-Outlook-Stable-2226076>
  
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