S&P affirms GrafTech ratings

Standard & Poor's said it affirmed the ratings on Wilmington, Del.-based GrafTech International Ltd., including its B senior unsecured rating and B- preliminary subordinated debt rating, and removed them from CreditWatch.

The outlook is positive.

The ratings had been placed on watch in October following the company's announcement of an increase in its common stock offering to a potential 25.3 million shares from 16 million shares.

Although $190 million of debt has been repaid from the proceeds, leverage (debt to EBITDA) is still aggressive. S&P said that for ratings to be upgraded, the company will need to achieve further sustained improvement in leverage over the course of a business cycle.

S&P said the ratings reflect GrafTech's significant exposure to cyclical steel markets and a very aggressive financial profile. Partially mitigating these risks are GrafTech's leading market position as a producer of graphite and carbon electrodes, and its global diversification of operations and customers.

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