Daily monitor

Standard & Poor's downgraded Ukraine’s sovereign long-term rating in foreign currency to B+ from BB-. The country was also demoted in domestic currency to BB- from BB, with a stable outlook on both ratings. S&P referred to the pro-cyclical economic policy of the Ukrainian government and its inability to combat inflation effectively.

Ukrainian cement plants increased production 24.3% in Jan.-April this year to 4.73 mln tons compared to Jan.-April 2007. The companies, which together form the Ukrcement Association, increased cement output 16.7% YoY to 3.77 mln tons in the last four months.

Turboatom [TATM UZ, N/R] signed a USD 19 mln sub-contract in the beginning of June with Russian Power Machines (PM) to deliver four rotary bucket-wheels for the Kaplan-type 165 МW vertical HPS to Shansogou (China). The first of the 8.5 m diameter wheels will be delivered in the next 24 months. The remainder will be delivered in five, four and three month intervals between deliveries.

ArcelorMittal Kryvyy Rih [KSTL UZ, HOLD] surprised yet again, having declared UAH 1.5 (USD 0.31) per share dividends at its June 12 AGM. The ex-dividends date was the day of the meeting, June 12. Natural persons have until September 01, 2008, and legal persons - until December 29, 2008 to apply for dividends.

On June 11, Azovstal [AZST UZ, BUY] reported in an official press release that it has produced first slabs at its brand new concaster No 6. The 2.5 mln mt Danieli machine has entered a testing stage, and its launch will increase Azovstal’s continuous slab casting capacity to 6.5 mln mt.

Dniprovagonmash [DNVM, N/R], the large domestic carriage producer owned by TAS Group, plans to deliver around 1000 container platforms to Russian “VKM-Leasing” company. This delivery is going to be part of the long-term contract signed by the two parties. According to the agreement, DNVM is going to supply the Russian party with platforms made for transportation of heavy-weight containers.

Bogdan Corporation, two core parts of which are Automobile Plant “Bogdan” [LUAZ] and Cherkassy Bus Plant, increased net income 2.5 times YoY in 1Q08 to USD 8.1 mln. At the same time net revenue increased 2.4 times YoY to USD 1.08 bln. According to Corporation’s press room such results are obtained mainly due to the growth of cars area of business aimed to satisfy multiplying demand.

Carlsberg, one of the world’s top breweries, is planning to build a brewery in Kharkiv. Carlsberg has already begun talks with local Kharkiv authorities, who proposed six potential sites for the new brewery. Carlsberg, which controls Baltic Beverage Holding (BBH), the main shareholder in Slavutych [SLAV UZ, BUY], will base its decision on the proximity of a good quality water source.

Kievenergo [KIEN UZ] is set to receive USD 31mln from the Kiev city budget to compensate its gas debts to state-owned Naftogas. According to Kiev city council officials, an additional USD 120mln is to be allotted to Kievenergo by the end of 2008.

Creativ Group [CREA UZ, N/R] has announced plans to increase the volume of its net revenue to USD 206.1 mln, thanks to the opening of a new soy processing factory in July 2008. The group has invested USD 25 mln in the factory, which will have a total output capacity of 100 ths mt of soy p.a. Moreover, Creativ is constructing a new oil plant that will boast a total output capacity of 245 ths mt of oil p.a., eventually leading to an increase in the group’s capacity to 345 ths mt p.a. The opening of the new oil plant is slated for Nov.-Dec. 2008.