Moody's lowers GrafTech

Moody's Investors Service said it lowered GrafTech International Ltd.'s speculative-grade liquidity rating to SGL-3 (adequate liquidity) from SGL-1 (excellent liquidity).

The change in the liquidity rating reflects the low visibility into 2009 demand for GrafTech's graphite electrodes sold for use in electric arc furnaces, the unusually steep downturn in steel demand and an expected decline in GrafTech's free cash flow, the agency said.

According to Moody's, the Ba2 corporate family rating and the Ba3 rating on the 10.25% notes due 2012 were affirmed while the rating on the revolving credit facility was downgraded to Ba1 and the loss-given-default assessment changed in accordance with the application of Moody's LGD methodology due to changes in GrafTech's capital structure.

The outlook remains stable.

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