The ratings reflect UCAR International Inc.'s position as the lowest-cost producer of graphite electrodes in the world and its leading market share, offset by a very aggressive financial profile and significant exposure to the cyclical steel markets. With 72% of revenues generated from international markets, UCAR benefits from its position as the largest producer worldwide 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. UCAR has a leading market share in each of its product lines. Following extensive industry consolidation, the graphite electrode industry has demonstrated more stable characteristics and is somewhat insulated from
