Cliffs Natural Resources Inc. has a reduced debt load and extended maturity profile after incorporating its proposed equity and notes issuance, as well as improved earnings prospects for 2017 and stronger market conditions for iron ore. The company has announced a $591 million equity issuance and the tender offer for high-cost debt. We are raising our long-term corporate credit rating on Cliffs Natural Resources to 'B' from 'CCC+'. The outlook is stable. We are also raising our issue-level ratings on Cliffs' asset-based lending (ABL) credit facility and 8.25% first-lien notes to 'BB-' from 'B'. The recovery rating on the debt remains '1'. In addition, we are raising our issue-level rating on the company's senior unsecured debt to 'CCC+' from CCC-'.
