Ohio-based graphite electrode producer GrafTech International Ltd. has completed an exchange of its senior secured notes. We view the transaction as distressed and tantamount to default because the maturity of the new notes will extend beyond the original date, and the priority of repayment will be lowered. Therefore, we lowered our issuer credit rating on GrafTech to 'D' from 'CC'. We lowered the affected issue-level debt ratings to 'D' from 'CC?. Over the coming days, we will reassess our issuer credit rating on GrafTech based on its new capital structure. We view the offer as providing the lenders less than the original promise because the maturity is being extended, the coupon rate remains the same, and new first-lien debt is
