...- We believe GrafTech International Ltd.'s EBITDA could decline to as low as breakeven this year if the softness in its end markets persists and graphite electrode prices remain pressured. - While we view the company as having sufficient liquidity to mitigate its forecasted cash burn this year, a recovery in its earnings will be key to support its liquidity in 2025 as its elevated leverage limits its access to its revolving credit facility (RCF). - We lowered our issuer credit rating on GrafTech to 'B-' from 'B+' and the issue level rating on its senior secured notes to 'B' from '##-'. Our '2' recovery rating (70%-90%; rounded estimate: 70%) on the secured notes is unchanged. - The negative outlook reflects the uncertainty around the timing and pace of GrafTech's earnings recovery. If the company's earnings do not recover as we expect, this could lead to a liquidity deficit and cause us to view its capital structure as unsustainable absent an improvement in market conditions....
