Standard&Poor's Ratings Services said today that Graftech International Ltd.'s (B+/Stable/--) announcement of a $14 million restructuring charge related to organizational changes and workforce reductions will have no affect on its ratings. The estimated benefits of these actions are expected to save $6 million in 2003 and $12 million in both 2004 and 2005. The actions are part of Graftech's $80 million in annual cost savings plan. Graftech expects to achieve recurring cost savings of $30 million, $60 million, and $80 million from 2003 through 2005 respectively. However, if current weak end market conditions do not improve in the near term, a "step-up" of covenants under the bank facility in September could result in covenant violations. This is somewhat
