Global leadership in the concentrated graphite electrode market; High operating margins; and Good credit measures for the rating. Exposure to cyclical end markets; Limited supplier diversity; Pressured raw material costs; and Capital-intensive operation. The ratings on GrafTech International Ltd. reflect the company's 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, has healthy margins driven by current favorable industry conditions, and has a good liquidity position. GrafTech manufactures carbon-based materials for use in various applications. Its primary product, graphite electrodes, accounts for about 80% of its sales. Following the sale of its cathodes business, the company derives its sales from advanced synthetic graphite
