The ratings reflect Wilmington, Del.-based GrafTech International Ltd.'s significant exposure to cyclical steel markets and a very aggressive financial profile. Partially mitigating these risks are GrafTech's leading market position as a producer of graphite and carbon electrodes, and its global diversification of operations and customers. GrafTech benefits from its position as the world's largest producer in the concentrated graphite electrode industry, generating $688 million of revenue for the 12 months ended Sept. 30, 2003. Mini-mill steel producers use graphite electrodes in their production process. The company also manufactures other carbon-based materials for various applications such as aluminum production, fuel cell power generation and electronics. The industry has undergone consolidation, and has high barriers to entry. Still, GrafTech's financial performance is
