S&P gives GrafTech loan BBB

Standard & Poor's said it assigned its BBB issue-level rating, two notches above the corporate credit rating on parent company GrafTech International Ltd., to GrafTech Finance Inc.'s proposed $230 million senior secured revolving credit facility due 2014.

The recovery rating is 1.

The agency said that it is its understanding that the borrowers under the facility will be GrafTech Finance and GrafTech Switzerland SA.

The facility will be guaranteed by GrafTech and certain of its subsidiaries, with all guarantors providing a first-priority lien on their assets as security to the facility, the agency added.

According to S&P, the ratings on GrafTech reflect the company's fair business risk profile, which its significant exposure to the cyclical steel industry, high degree of supplier concentration, and continued raw material cost pressures demonstrate.

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