Cliffs Natural Resources Inc. -- Moody's: Breaking up Cliffs would be credit negative

New York, January 28, 2014 -- Moody's views the proposal from Casablanca Capital LP (Casablanca), which owns approximately 5.2% of Cliffs Natural Resources Inc's (Cliffs) common stock, as credit negative. Actions taken throughout 2013 by the company have resulted in a stronger capital structure, reduced debt levels and an improving cost position. Given current debt levels ($3.9 billion at September 30, 2013) and the ongoing reinvestment needs given the depleting nature of the iron ore and coal assets, the credit profile and debt protection metrics of a split company, as proposed by Casablanca (essentially the US iron ore and coal assets), are unlikely to be of investment grade quality.

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