Persistent weakness in global steel markets driven by overcapacity continues to weigh on U.S.-based GrafTech International Ltd.'s operating results primarily through declining graphite electrode prices. We expect pricing for graphite electrodes to erode further in 2016, leading to weaker credit measures, less than adequate liquidity, and a likely covenant breach (absent any waivers or amendments) over the next 12 months. As a result, we are lowering our corporate credit rating on GrafTech and our issue-level rating on the company's $300 million senior unsecured debt due 2020 to 'CCC+' from 'B'. The recovery rating on the company's senior unsecured notes remains '4', indicating our expectation for average (30% to 50%; at the upper end of the range) recovery in the event
