Daily monitor

MHP [MHPC LI, U/R] has signed a new loan agreement for USD 50 mln with ING Bank. Funds will be used for working capital needs, primarily for purchase of sunflower seeds in local markets for processing into sunflower oil for export.

Luganskteplovoz [LTPL UK] has acquired a major order to supply 35 locomotive sections to Ulan-Bator railways (Mongolia) in 2011. The company has announced a tender for attracting RUB 1 bln credit and plans to factor USD 5.3 mln of liabilities.

S&P has assigned “B-” long term corporate credit rating to Mriya [MAYA GR, BUY] and placed it on CreditWatch with positive implications. Also S&P has assigned “B” rating and “4” recovery rating to the planned Eurobond issue of Mriya. The planned volume of the issue is USD 300 mln. The road show will last from November 3 to 8. Final ratings will be assigned after the Eurobond issue.

Prosceno Trading Limited (Cyprus), holder of 13.5% shares in Sumy Frunze has filed a claim against Sumy Frunze [SMASH UK] after the shareholder meeting adopted a decision to transfer 78% of the assets to a company with the same name, which has been sold to an offshore company.

During 10M2010 Ukrainian pipe rolling companies have increased the output of steel pipes by 3% YoY to 1.4 mln tons.

Fitch Ratings has assigned “B-” rating (outlook stable) to the planned Eurobond issue of Mriya [MAYA GR, BUY]. Fitch has also assigned an expected recovery rating of “RR4”. The planned volume of the issue is USD 300 mln. The road show will last from November 3 to 8. Final ratings will be assigned after the Eurobond issue.

In 3Q2010 Motor Sich [MSICH UK] has increased net profit by 81% YoY to USD 36mln.

Fabryka Samochodow Osobowych, a car production plant in Poland that is owned by UkrAVTO Corporation [AVTO UK], might be liquidated, according to Roman Bugai, the company official representative. The FSO factory has implemented measures directed at group dismissals and might dismiss all of its 1.8 thsd employees by March 2011. Losses for FSO in 2009 accounted over USD 67 mln.

GP Antonov, a large Ukrainian aircraft producer, and United Aviation Corporation (UAC, Russia) have signed an agreement to create a joint venture for cooperation in parts purchases, marketing, sales, servicing of Antonov brand aircraft, and designing new aircraft models. The venture stocks will be distributed 50/50 and the board will consist of 12 members – 6 from each party.

Sugar producers in Ukraine processed 8.1 mln tonnes of sugar beet and produced 0.93 mln tonnes of sugar as of October 27, which is 35.7% YoY more than in 2009. Sugar beet is being processed by 62 sugar factories, whereas it was processed in only 45 factories in 2009.