Moody's Changes Outlook On Styrol's B3 Ratings To Negative From Stable

The outlook was changed both on the B3 corporate family rating of Concern Styrol (STIR: Sell) and the B3 rating on the loan participation notes issued by UkrChem Capital BV. The notes were issued for USD 125 for granting a loan to Styrol. According to Moody’s press release, the change in the outlook has been prompted by the recent increase in Ukrainian gas prices from USD 50 to USD 95 per thousand cubic meters in the first half of 2006, the likely further increase in Turkmen gas prices, along with the significant weight of gas-related costs in Styrol’s cost base and the expected impact of the price increases on operating margins. Concorde Capital: we have downgraded STIR recently; please look for our research report. The factor which could support the market’s optimism, the planned and postponed IPO, seems pushed even longer into the future with the Moody’s downgrade.