Global leader in the very concentrated graphite electrode market; No known substitute products; and Global diversification of plants in low-cost geographies, and global customer diversification. Prone to cyclical swings of the steel industry; Negative equity base; and Aggressive leverage. The ratings reflect Wilmington, Del.-based GrafTech International Ltd.'s significant exposure to cyclical steel markets and a very aggressive financial profile. Partially mitigating these risks are GrafTech's leading market position as a producer of graphite and carbon electrodes, and its global diversification of operations and customers. GrafTech benefits from its position as the world's largest producer in the concentrated graphite electrode industry, generating $688 million of revenue for the 12 months ended Sept. 30, 2003. Mini-mill steel producers use graphite electrodes in
