Summary: Baffinland Iron Mines Corp.

Limited operating diversity, with one operating mine Small scale of operations Limited track record of production High reserve grades Limited flexibility to manage seasonal working capital peaks and future declines in iron ore prices Reliance on sponsor capital injections to fund growth objectives Adjusted debt-to-EBITDA expected to deteriorate to about 7x from high capital expenditures High sensitivity of credit measures to iron ore price volatility The stable outlook on Baffinland Iron Mines Corp. primarily reflects S&P Global Ratings' expectation that the company will generate sufficient internal cash flow to fund its fixed charges over the next 12 months, with committed capital available from its equity sponsor to manage seasonal peaks in working capital and to fund its growth objectives over

...Outlook: Stable The stable outlook on Baffinland Iron Mines Corp. primarily reflects S&P Global Ratings' expectation that the company will generate sufficient internal cash flow to fund its fixed charges over the next 12 months, with committed capital available from its equity sponsor to manage seasonal peaks in working capital and to fund its growth objectives over this period. We expect Baffinland to generate adjusted debt-to-EBITDA of about 7x in 2018, primarily driven by growth spending that exceeds operating cash flows. We also expect the company's credit measures to remain highly sensitive to modest iron ore price fluctuations, with limited headroom under Baffinland's credit facility covenants as the company progresses with its Phase 3 expansion program....

Summary