S&P: GrafTech view positive

Standard & Poor's said it revised its outlook on GrafTech International Ltd. to positive from stable and affirmed its B+ corporate credit rating.

The outlook revision reflects GrafTech's continued solid operating results over the past few quarters due to higher graphite electrode pricing and relatively steady demand, a trend expected to continue in the near term.

The ratings on GrafTech reflect its significant exposure to the cyclical steel industry, limited supplier diversity and continued raw material cost pressure, S&P said.

The ratings also reflect a good market position in graphite electrodes, healthy margins driven by industry conditions and adequate liquidity position, the agency said.

GrafTech's trailing 12 month total debt-to-EBITDA improved to about 2.5 times at June 30 from 4.4 times for the 12 months ended Dec. 31, 2006.

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