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