Standard&Poor's Ratings Services said today that there is no change to its ratings or outlook on GrafTech International Ltd. (B+/Stable/--) following the company's fourth quarter earnings announcement. The earnings are in line with Standard&Poor's expectations. 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 concerning considering that during the 12-month period ended Dec. 30, 2002, Graftech was unable to generate positive funds from operations while free cash flow was a negative $110 million.
