S&P: GrafTech outlook to stable

S&P said it affirmed its CCC+ corporate credit rating on GrafTech International Ltd. and revised the outlook to stable from negative.

The agency also affirmed its CCC+ issue-level rating on the company's $300 million senior unsecured notes due 2020. The recovery rating remains 4, indicating an expectation for average (30% to 50%; at the upper end of the range) recovery in the event of a payment default.

"The stable outlook reflects our view that GrafTech's liquidity will remain adequate for at least the next 12 months, helped by the amendments to its revolving credit agreement and recent operating results, which should provide adequate cushion for the rating," S&P credit analyst Michael Maggi said in a news release.

"At the same time, however, we continue to view the company's capital structure to be unsustainable over the long-term given our expectations for adjusted EBITDA to be only modestly positive in 2017, with EBITDA interest coverage below 0.5x."

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