Dominant global market share Production discipline in an industry where production is mostly concentrated Very efficient in producing graphite electrodes Its industry poses high barriers to entry Highly leveraged/negative equity Cyclical end markets results in volatile credit protection measures Currently weak key cash flow measures 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
