Backward integration provides internal supply of needle coke Global manufacturing network with a presence in underserved areas including Latin America Capacity increases expected during the next two years could pressure prices Raw material and overhead costs continue to constrain margins Leverage expected to rise to about 3x in 2013 due to lower EBITDA and increased debt, and then fall to 2.5x in 2014 due to increased profitability Funds from operations (FFO) to debt of between 25% and 30% for the next two years The stable rating outlook reflects Standard&Poor's Ratings Services' view that although weak results in Europe and a difficult operating environment in 2013 could shift GrafTech International Ltd.'s credit measures outside the typical range for the
