S&P raises GrafTech

Standard & Poor's said it raised its corporate credit rating on GrafTech International Ltd. to B+ from B.

In addition, the agency said it raised the rating on the company's $215 million senior secured revolving credit facility to BB- from B+ and affirmed the 1 recovery rating on the facility.

Also, S&P said it raised its rating on GrafTech's convertible notes to B- from CCC+.

Lastly, the agency said it affirmed the B- rating on GrafTech's $550 million senior secured notes and assigned them a 5 recovery rating.

The outlook is stable.

According to S&P, the upgrade reflects GrafTech's strengthening financial profile following debt reduction, good operational performance and improved cash flow generation with no more expected antitrust fines.

The ratings on GrafTech reflect its aggressive financial leverage, significant exposure to the cyclical steel industry, limited supplier diversity and raw material cost pressure, S&P said, adding that ratings also reflect the company's good market position in graphite electrodes, healthy margins driven by current favorable industry conditions and fair liquidity.

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