S&P rates GrafTech notes BB+

Standard & Poor's said it assigned its BB+ issue-level rating to GrafTech International Ltd.'s proposed $300 million senior unsecured notes due 2020. The recovery rating on the notes is 4, indicating an expectation for average recovery in the event of a payment default.

At the same time, the agency said it affirmed its BB+ corporate credit rating on Graftech. The outlook is stable.

"The rating affirmation and stable outlook reflect our expectation that the average price of graphite electrodes, the company's primary product, will be up about 11% to 12% in 2012, based on current market prices," said S&P credit analyst Maurice Austin in a news release.

"This is despite our expectations that sales volumes will decline because customers are destocking, a consequence of the decline in steel production due to the slower-than-anticipated economic recovery."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.