The ratings on Parma, Ohio-based GrafTech International Ltd. reflects the combination of what Standard&Poor's Ratings Services considers to be the company's "fair" business risk and "intermediate" financial risk profiles. The ratings also reflect the company's significant exposure to the cyclical steel industry, a high degree of supplier concentration, and continued raw material cost pressures. Still, the company maintains a good market position in graphite electrodes and has consistently generated healthy operating margins. In addition, during the past several years, the company has materially reduced its book debt through free cash flow generation, which has resulted in an intermediate financial risk profile. Our base-case scenario reflects our expectation that sales volumes will decline in 2012 because customers are destocking,
