S&P: SGL Carbon to negative

Standard & Poor's said it revised the outlook on SGL Carbon SE to negative from stable.

The agency also said it affirmed the company's BB long-term corporate credit rating, along with the BBB- rating on its senior secured notes and the BB rating on its senior unsecured notes.

The outlook revision reflects the current weak steel market, the main end-market for SGL's graphite electrodes and the uncertainty over potential structural changes in the market for needle coke starting in 2014, S&P said.

In addition, the markets are soft for SGL's other divisions, including graphite materials and systems and carbon fiber composites, the agency said.

As a result, S&P said it sees a risk that SGL's credit metrics will deteriorate to less than the level commensurate with a BB rating.

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