Moodys downgrades sovereign ratings of Ukraine to Ca

MOSCOW (MRC) -- Moody's Investors Service has downgraded Ukraine's long-term issuer and government debt ratings to Ca from Caa3. The outlook remains negative, as per the agency's statement.

The key driver of the downgrade is the likelihood of external private creditors incurring substantial losses as a result of the government's plan to restructure the majority of its outstanding Eurobonds. Also included in the restructuring is the external debt of state-guaranteed entities and selected other state-owned enterprises, and the Eurobonds issued by the capital city of Kiev.

The negative outlook reflects Moody's expectation that Ukraine's government and external debt levels will remain very high, in spite of the debt restructuring and plans to introduce reforms.

In a related rating action, Moody's also downgraded the issuer and debt ratings of the "Financing of Infrastructural Projects" (Fininpro) to Ca/(P)Ca from Caa3/(P)Caa3 and maintained the negative outlook. Fininpro's debt is fully and unconditionally guaranteed by the government of Ukraine.

Moody's also lowered Ukraine's country ceiling for long-term foreign currency debt to Caa3 from Caa2, and its country ceiling for long-term domestic currency debt and deposits to Caa2 from Caa1. Ukraine's country ceiling for foreign-currency bank deposits remains unchanged at Ca. All short-term country ceilings also remain unchanged at Not Prime (NP).

The key driver of Moody's decision to downgrade Ukraine's long-term government debt and issuer ratings to Ca is the government's plan to restructure the majority of its outstanding Eurobonds as well as other public sector external debt and the rating agency's expectation that private creditors will incur substantial economic losses as a result of the restructuring.
MRC

MOSCOW (MRC) -- International material sciences leader SABIC has announced its commitment to developing innovation in additive manufacturing at NPE2015, said EPPM.

The world's first 3D printed car, developed with SABIC material technology, manufactured by Local Motors. Leveraging its global technology centers in the Americas, Europe, Asia and Saudi Arabia, SABIC is expanding its application development focus in additive manufacturing technology.

The move further underscores SABIC's commitment to this evolving technology that is pushing the industry to rapidly develop new materials and processes that can help to achieve improved performance, complex designs, enhanced aesthetics and more economical part builds. SABIC’s capabilities and experience in additive manufacturing across a number of industries will enable it to work closely with technology innovators including universities, research laboratories, printer manufacturers, OEMs and emerging technology companies to help accelerate the advancements necessary for additive manufacturing to reach its full potential.

SABIC’s success with additive manufacturing has been driven in large part by the company’s holistic approach to this technology. From a broad portfolio of high performance materials, to design and processing expertise, to state-of-the-art equipment, SABIC provides a highly supportive research environment for material optimization, testing and designing for additive manufacturing processes.

As MRC informed earlier, Sabic reported a 29% drop in fourth-quarter profit as lower oil prices reduced returns from its own products. Net income dropped to 4.36 billion riyals (USD1.16 billion) from 6.16 billion riyals a year earlier, the Riyadh-based company said in a statement today. Sales slipped 10% to 43.4 billion riyals.

Saudi Basic Industries Corporation (Sabic) ranks among the worldпїЅs top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- South Korean petrochemical company LG Chem is in plans to shut a styrene monomer (SM) plant for maintenance turnaround, according to Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut in April 2015. It is likely to remain off-stream for around one month.

Located at Daesan in South Korea, the plant has a production capacity of 500,000 mt/year.

As MRC wrote earlier, LG Chemical shut down its polypropylene (PP) plant in South Korea for maintenance turnaround in late March 2015. It is expected to remain off-stream for around one month. Located at Daesan in South Korea, the plant has a production capacity of 600,000 mt/year.

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
MRC

MOSCOW (MRC) -- Samsung Total Petrochemical is likely to shut its polypropylene (PP) plant for maintenance turnaround, as per Apic-online.

A Polymerupdate source in South Korea informed that the plant is planned to be shut in mid-April 2015 for maintenance turnaround. It is likely to remain off-stream for around one month.

Located in Daesan, South Korea, the plant comprises of three line with a combined production capacity of 250,000 mt/year.

We remind that, as MRC wrote previously, in November 2014, South Korea's Samsung Group said it is selling stakes in four chemical and defence firms for 1.9 trillion won (USD1.72 billion) to Hanwha Group, the latest move in the massive task of restructuring the country's largest conglomerate.

Later, in the first decade of March 2015, South Korea's Fair Trade Commission (KFTC) gave conditional approval to Hanwha's proposed acquisition of Samsung General Chemicals.
MRC

MOSCOW (MRC) -- The overall imports of linear low density polyethylene (LLDPE) to Ukraine decreased over the first two months of 2015 by 17% year on year and totalled 6,700 tonnes. Demand from local films producers fell significantly, according to MRC DataScope report.

February LLDPE imports to Ukraine rose to 4,000 tonnes after the January fall of 2,700 tonns. However, the overall imports of this polyethylene (PE) grade to the local market dropped to 6,700 tonnes in January and February 2015 versus 8,100 tonnes a year earlier. The need for linear PE decreased in all consumption sectors, but the film processing sector accounted for the largest decrease in demand.

The structure of LLDPE imports looks the following way over the stated period.

Last month's imports of film grade LLDPE rose to 3,700 tonnes under the pressure of seasonal factors compared to 2,500 tons in January, local producers of irrigation stretch films increased their purchasing. Demand for LLDPE in this consumption sector dropped by 18% over the first two months of the year to 6,200 tonnes.

February LLDPE imports to the sector of rotational moulding of large items rose to 110 tonnes versus 66 tonnes a month earlier. Demand for this PE grade subsided to 176 tonnes over the said period from 186 tonnes a year earlier.

The overall LLDPE imports from customer in other consumption sectors were slightly more than 250 tonnes.

MRC