The rating on Cleveland-Cliffs Inc. reflects the combined company's strong domestic market position in both the iron ore and metallurgical coal markets, currently solid industry conditions, and good pro forma credit metrics for the rating. Standard&Poor's Ratings Services believes that pro forma for the pending acquisition of Alpha Natural Resources, Cliffs will generate significant near-term discretionary cash flow, so as to enable the company to quickly reduce debt balances while pursuing previously outlined growth initiatives. Still, the company is dependent upon the U.S. steel industry end market and operates with a high cost structure compared with its peers. In addition, as with any acquisition of this magnitude, integration risk remains a concern, although this is somewhat offset by
