The 'BBB-' rating on Cliffs Natural Resources Inc. reflects the combination of what Standard&Poor's considers to be the company's fair business risk profile and intermediate financial risk profile. These assessments reflect its good domestic market position in the North American iron ore market, high barriers to entry, significant cash flow generating ability throughout a cyclical downturn, and the pending acquisition of Consolidated Thompson Iron Mines Ltd. However, our rating also incorporates the highly cyclical nature of iron ore, given its exposure to steel industry conditions; Cliffs' significant customer concentration; and somewhat high cost structure. In addition, the rating incorporates our expectation that after the integration of Consolidated Thompson, Cliffs will remain aggressive in its growth through acquisitions, in
