S&P boost GrafTech

Standard and Poor's said it raised the corporate credit rating on GrafTech International Ltd. to BB+ from BB- and its $215 million revolving credit facility due 2010 to BBB from BB+ with 1 recovery rating.

The outlook is stable. Ratings were removed from CreditWatch positive, where they were placed on Sept. 30.

S&P said the upgrades reflect GrafTech's better-than-expected operating performance in 2009, despite the downturn in the steel industry.

Credit metrics are at a level that is considered good even for the higher rating, with a total adjusted debt-to-EBITDA ratio well under 1x, the agency noted.

Ratings reflect the company's fair business risk profile, with a significant exposure to the cyclical steel industry, high degree of supplier concentration and continued raw material cost pressures, the agency said.

The company maintains a good market position in graphite electrodes, has healthy margins and an intermediate financial risk profile, the agency noted.

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