Global leadership in the concentrated graphite electrode market; Improved financial performance; and Favorable industry conditions. Exposure to cyclical swings in the steel industry (about 70% of 2006 sales); Capital intensive, competitive and concentrated industry; and Raw material cost pressure (somewhat mitigated by stable/fixed-price supply contracts). The ratings on GrafTech International Ltd. reflect its significant exposure to the cyclical steel industry, limited supplier diversity, and continued raw material cost pressure. Still, the company maintains a good market position in graphite electrodes, possesses healthy margins driven by current favorable industry conditions, and has an adequate liquidity position. GrafTech manufactures carbon-based materials for use in various applications. Its primary product, graphite electrodes, accounts for about 80% of sales. Since the company sold its
