Moody's may downgrade Concern Stirol

Moody's Investors Service said it placed the B3 corporate family rating of Ukraine-based OJSC Concern Stirol and the B3 rating on UkrChem Capital BV's loan participation notes under review for possible downgrade.

The agency said the review was prompted by recently released audited 2005 financial results, which indicated that the company was in breach of a number of covenants under both a $10 million bank loan and the $125 million loan participation notes, giving the bank and note investors the right to accelerate repayment.

Moody's review will focus upon the availability of cash to meet possible acceleration of repayments and the impact of such possible acceleration on the company's funding flexibility and liquidity profile.

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