The rating on Cleveland-based mining and natural resources company Cliffs Natural Resources Inc. reflects the combination of what Standard&Poor's Ratings Services considers to be the company's "satisfactory" business risk profile and "intermediate" financial risk profile. These assessments reflect the company's good domestic market position in the North American iron ore market, high barriers to entry, and significant cash flow generating ability throughout a cycle. However, our rating also incorporates the highly cyclical nature of the iron ore business (given the company's exposure to the volatile steel industry), Cliffs' significant customer concentration, and the company's relatively high cost structure. Under our base-case scenario, we expect 2012 operating performance to be down from 2011 levels because of lower iron ore
