U.S.-Based Cleveland-Cliffs Inc.'s 7.5% Senior Unsecured Notes Rating Lowered To 'CCC' From 'B-' On Release Of Liens

NEW YORK (S&P Global Ratings) June 18, 2020--S&P Global Ratings today lowered its issue-level rating on iron ore and steel producer Cleveland-Cliffs Inc.'s 7.5% senior unsecured notes due 2023 to 'CCC' from 'B-' and revised the recovery rating to '6' from '4'. Following the tender offer Cleveland-Cliffs Inc. completed in March 2020, approximately $13 million of its subsidiary AK Steel Corp.'s 7.5% notes due 2023 remain outstanding. The holders of these notes released the liens securing the obligation. As such, these notes are now an unsecured obligation and rank equally in right of payment with the company's unsecured and unsubordinated debt. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors Cliffs' capital structure comprises a unrated $2 billion revolving credit facility ($650 million

...June 18, 2020 NEW YORK (S&P Global Ratings) June 18, 2020--S&P Global Ratings today lowered its issue-level rating on iron ore and steel producer Cleveland-Cliffs Inc.'s 7.5% senior unsecured notes due 2023 to '###' from 'B-' and revised the recovery rating to '6' from '4'. Following the tender offer Cleveland-Cliffs Inc. completed in March 2020, approximately $13 million of its subsidiary AK Steel Corp.'s 7.5% notes due 2023 remain outstanding. The holders of these notes released the liens securing the obligation. As such, these notes are now an unsecured obligation and rank equally in right of payment with the company's unsecured and unsubordinated debt. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors - Cliffs' capital structure comprises a unrated $2 billion revolving credit facility ($650 million currently drawn). - The company has approximately $2.2 billion of senior secured notes, including the $150 million add-on to its $725 million senior secured notes due 2026. - Cliffs...

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