S&P ups GrafTech notes to BB

Standard & Poor's said it revised the outlook on GrafTech International Ltd. to positive from stable and raised its senior unsecured notes to BB from BB- and recovery rating to 2.

The BB- corporate credit rating was affirmed.

The outlook revision reflects the company's strengthened financial profile due to the recent conversion into equity of its outstanding $225 million notes due 2024, good operating performance and enhanced cash flow generation supported by currently favorable market conditions, according to S&P.

The issuer has a debt-to-EBITDA ratio of about 0.5 times.

Ratings reflect the company's significant exposure to the cyclical steel industry, limited supplier diversity and raw-material cost pressure, the agency said.

The company maintains a good market position in graphite electrodes, possesses healthy margins driven by current favorable industry conditions and has a good liquidity position, the agency noted.

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