The ratings reflect UCAR International Inc.'s position as the lowest-cost producer of graphite and carbon electrodes in the world and its leading market share, offset by an aggressive financial profile and significant exposure to the cyclical steel markets. With 72% of revenues generated from non-U.S. markets, UCAR benefits from its position as the world's largest producer of graphite electrodes, which are consumed by minimills in the steelmaking process. Approximately two-thirds of the minimills in the world market (excluding China, the former Soviet Union, and Eastern Europe) purchase graphite electrodes from UCAR. Following extensive industry consolidation, participants in the graphite electrode industry have demonstrated capacity restraint and are somewhat insulated from new production, given the high barriers to entry. Still, UCAR's
