GrafTech International Ltd.'s graphite electrode manufacturing facility located in Monterrey, Mexico, which accounts for roughly a third of its production, received a temporary suspension notice following an inspection of its environmental and operating permits. We believe the risk of an extended closure of this facility, coupled with softer market conditions, could cause the company's leverage to increase above 3.0x. Therefore, we placed our 'BB-' issuer credit rating on GrafTech and our 'BB' issue-level rating on its senior secured term loan on CreditWatch with negative implications. The CreditWatch placement reflects that we could lower our ratings if it appears that the facility will remain closed for an extended period, leading to some disruption in the company's operations and increasing the risk
