TCRAP_Public/061102.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  
  
                     A S I A   P A C I F I C  

           Thursday, November 2, 2006, Vol. 9, No. 218

                            Headlines

A U S T R A L I A

ALLSTATE EXPLORATIONS: Sets Annual General Meeting for Nov. 30
EVANS & TATE: Pays Convertible Notes Interest to Noteholders
J&P FERGUSSON: Creditors Must Prove Debts by November 8
JAMES HARDIE: Final Funding Deal with Govt. Extended to Nov. 14
JONADA PTY: Creditors to Prove Claims by November 16

L.U. SIMON: Placed Under Members' Voluntary Wind-Up
KOPPERS HOLDINGS: Reports Problem at Monessen, Pa. Plant
MD VICTORIA: Members & Creditors to Receive Liquidator's Report
METAL STORM: General Downing Resigns Effective November 1
MULATTO NOMINEES: Final Meeting Slated for October 31

MULTIPLEX GROUP: Board Reviews Alternatives to Capital Structure
NEPEAN WASTE: Liquidator Judson to Present Wind-Up Report
ONTRAK RAILWAY: Will Declare Final Dividend on November 10
PETER GYORI: Undergoes Voluntary Liquidation
PLASTECH INDUSTRIES: Final Meeting Scheduled on November 3

POST HASTE: To Hold Final Meeting on November 10
RYCOMM SYSTEMS: Creditors' Proofs of Claim Due on November 8
SPRING MOUNT: Schedules Final Meeting on November 1
STEPHEN D. THOMAS: Members to Hold Final Meeting on November 1
TIWARRIE PTY: Members to Receive Liquidator's Final Account

TRANSOL HOLDINGS: Enters Voluntary Liquidation
TRANSOL PTY: Commences Wind-Up of Operations
VAPORATE PTY: Creditors Resolve to Wind-Up Firm
VAPORATE TRADING: Creditors Resolve to Close Business
WAPF INVESTMENTS: Members' Final Meeting Set for November 7

WILLY & RAOS: To Declare Third and Final Dividend on November 2
WOODREIN PTY: Members to Receive Wind-Up Report


C H I N A   &   H O N G  K O N G

ACXIOM CORP: Posts US$21.7MM Earnings for 2nd Quarter 2007
BALL CORP: Reports US$101.5MM Earnings for Third Quarter 2006
BALL CORP: Declares US$0.10 Per Share Cash Dividend
BANTA CORP: High Leverage Prompts Moody's to Assign Ba2 Rating
BANTA CORP: Board Rejects Cenveo's Acquisition Proposal

BOMBARDIER INC: Moody's Rates EUR1.8-Bln Sr. Unsec. Notes at Ba2
BOMBARDIER INC: Operating Pressures Prompt S&P to Affirm Rating
CELESTICA INC: Incurs US$42.1 Million Net Loss in Third Quarter
COOPER TIRE: Moody's Assigns Loss-Given-Default Ratings
DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit

DAIMLERCHRYSLER AG: Losses Continue at Chrysler Group
EMI GROUP: Unearths Accounting Fraud at Brazilian Unit
HOPSON DEVELOPMENT: Keeps BB+ Credit Rtg, Outlook Shifts to Neg.
INTELSAT LTD: Names Vicki Warker Sr. Vice President of Marketing
PARKSON RETAIL: Moody's Hands Ba1 Corp. Family Rating

PETROLEOS DE VENEZUELA: Launches Proyecto Etanol
PETROLEOS DE VENEZUELA: Awards Study Contract to SNC-Lavalin
SEMICONDUCTOR MANUFACTURING: 3rd Qtr Net Loss Reaches US$35 Mil.
SENSUS METERING: Moody's Assigns Loss-Given-Default Rating
TRW AUTOMOTIVE: Moody's Assigns Loss-Given-Default Ratings

VOLKSWAGEN AG: Earns EUR1.2 Billion for January-September 2006
WESCO INT'L: Commences Offering on Convertible Debentures
WESCO INT'L: Offers US$250-Mln Convertible Senior Debentures


I N D I A

GENERAL MOTORS: Posts US$115-Mil. Net Loss in 2006 Third Quarter
GENERAL MOTORS: Receiving 10,000 Tons of Steel from Usinas
GENERAL MOTORS: S&P Holds Low-B Ratings on Watch Negative
INDIAN OIL: Eyes Stake in Indonesia's Tuban Petrochemical
JAMMU & KASHMIR: Second Quarter FY2006-07 Net Profit Up 54%

JUNIPER NETWORKS: Powers Beijing's First 40G Link
KARNATAKA BANK: Sept. 2006 Quarter Net Profit Up 43%
KOTAK MAHINDRA: Consolidated Profit Up 13% YOY in Q2/FY2006-07
KOTAK MAHINDRA: Acquires 51% Stake in 4 Indirect Subsidiaries
KOTAK MAHINDRA: Grants Stock Options to Employees

LAKSHMI VILAS: Reports Business Performance for Q2/FY2006-07


I N D O N E S I A

ANEKA TAMBANG: Nine-Month Net Profit Rises to IDR808.84 Bil. YoY
BANK CENTRAL ASIA: Fitch Affirms All Ratings
BANK NIAGA: Fitch Affirms All Bank Niaga Ratings
BANK RAKYAT: Fitch Affirms BB- Long-Term For. Currency Rating
EXCELCOMINDO PRATAMA: Net Profit for 9-Month Period Rises 57%

FAJAR SURYA: Fitch Assigns Final 'B+' Rating to Secured Notes
HM SAMPOERNA: Nine-Month Net Profit Rises 24.8%
NORTEL NETWORKS: Doubles Network Capacity Through Wireless Tech.
NORTEL NETWORKS: Nortel Government Bags Elite Improvement Rating
TELKOM INDONESIA: Nine-Month Net Profit Ups by 60% YoY


J A P A N

FTI CONSULTING: Names James Crownover to Class II of the Board
MAVERICK TUBE: Tenaris Deal Prompts Moody's to Withdraw Ratings
METALDYNE CORP: Moody's Assigns Loss-Given-Default Ratings
MITSUBIHI MOTORS: First-Half Net Loss Down to JPY16.1 Billion
SOFTBANK MOBILE: To Cut Call Fees in November 2006

SOLO CUP: Moody's Assigns Loss-Given-Default Ratings
TENNECO INC: Moody's Assigns Loss-Given-Default Ratings
TIMKEN CO: Earns US$46 Million in Third Quarter of 2006
TIMKEN CO: Moody's Assigns Loss-Given-Default Rating
XEROX CORP: Moody's Confirms Ba1 Corporate Family Ratings

* Moody's: Paper Makers Face Challenges But Finances Suit Rating


K O R E A

* Korea Exchange to Consolidate System with Tokyo Exchange


N E W   Z E A L A N D

AIR NEW ZEALAND: Introduces J. Harrison as GM-Australia


P H I L I P P I N E S

METROPOLITAN BANK: 3rd-Quarter Net Profit Up 37%, Reuters Says
PHILIPPINE NATIONAL BANK: To Hold Joint Auctions with Allied
RIZAL COMMERCIAL BANKING: Fitch Sets Hybrid Issue Rating at B-


S I N G A P O R E

ADVANCED MICRO: Moody's Assigns Loss-Given-Default Ratings
AKER KVAERNER: Earns NOK414 Million for Third Quarter 2006
AKER KVAERNER: Inks US$80-Mln Riser Deal with Queiroz Galvao
AVAGO TECHNOLOGIES: Moody's Assigns Loss-Given-Default Ratings
CHEMTURA CORP: Declares Quarterly Dividend of US$0.05 Per Share

HEXION SPECIALTY: Extends Tender Offer for Sr. Notes to Nov. 13
INTERMEC INC: Moody's Assigns Loss-Given-Default Rating
LINDETEVES-JACOBERG: Enters Sale and Licensing Agreement
MAE ENGINEERING: Notes Shareholders' Change of Interests
PETROLEO BRASILEIRO: Reaches Gas Exploration Pact with Bolivia

PREMIER INTERNATIONAL: Creditors Proofs of Debt Due on Nov. 20
UNITED TEST AND ASSEMBLY: S&P Gives 'BB-' Corp. Credit Rating


T H A I L A N D

BANK OF AYUDHYA: GE Confirms Stock Purchase Deal
SAS AB: To Sell 75% Outstanding Shares in Rezidor Hotel
SAS AB: Stake Sale Plan Prompts Moody's to Affirm Ratings
TMB BANK: May Miss THB10-Billion Net Profit Target for 2006

     - - - - - - - -

=================
A U S T R A L I A
=================

ALLSTATE EXPLORATIONS: Sets Annual General Meeting for Nov. 30
--------------------------------------------------------------
Allstate Explorations NL advises the Australian Stock Exchange
that its Annual General Meeting will be held on November 30,
2006, at 11:00 a.m., at The Grace Hotel, 77 York Street, in
Sydney, New South Wales.

The AGM's agenda include the consideration of the company's
financial statements for the financial year ending June 30,
2006, together with the Deed Administrators' Report and
Declaration, and the Auditors' Report.

The time for the purpose of determining the voting entitlements
at the meeting is 7:00 p.m., on November 28, 2006.

                         About Allstate

Allstate Explorations NL solely operates in Australia.  The
Company manages, develops, and operates the Beaconsfield Mine
Joint Venture in Beaconsfield, Tasmania.  Allstate partially
owns the Beaconsfield gold mine with its partner Beaconsfield
Gold NL.  The Beaconsfield mine is located in Launceston,
Tasmania, Australia.

Allstate was placed under administration in 2004.  The
Administrator can be reached at:

         Allstate Explorations NL
         The Administrator
         Taylor Woodings Corporation Services
         6th Floor, 30 The Esplanade
         Perth, Australia, 6000
         Telephone: 08 9321 8533
         Fax: 08 9321 8544


EVANS & TATE: Pays Convertible Notes Interest to Noteholders
------------------------------------------------------------
Evans & Tate Limited discloses with the Australian Stock
Exchange that under the terms of the company's 8.25% Convertible
Notes, the company has made the half-yearly interest payment of
4.125% per Convertible Note payable to all Convertible
Noteholders.

The payment was made on November 1, 2006.  The record date for
the payment was October 17, 2006.  The interest payment is
unfranked.

                    About Evans & Tate

Headquartered in Wembley, Western Australia, Evans & Tate
Limited -- http://www.etw.com.au/-- is an Australian wine  
company listed on the Australian Stock Exchange.  The primary
businesses of the Evans & Tate Wine Group are the production,
marketing and distribution of a number of branded, exclusive
labeled and unbranded wines; contract winemaking; wine trading;
viticultural services; and wine tourism through its Visitor
Centers.

In June 2005, rumors began brewing that the wine maker was
carrying total liabilities of AU$127.5 million, of which
AU$102.5 million was interest-bearing debt.  A few days later,
Evans & Tate admitted that it had been coordinating with
insolvency firm KordaMentha on the recommendation of its major
creditor, ANZ Banking Group Limited.  It had appointed
KordaMentha's 333 Performance Management "to improve its
forecasting, planning and business efficiencies."  Evans & Tate
also admitted that it was cash flow negative and had sought an
AU$8.5-million capital injection from ANZ Bank.  The firm
further said that it would cut the value of its wine inventories
by AU$8 million to AU$10 million, offload stock at a discount,
and cut the carrying value of certain wineries.  In July 2005,
Evans & Tate has secured an additional AU$10 million in short-
term working capital from ANZ.

The Troubled Company Reporter - Asia Pacific reported on
July 18, 2006, that Evans & Tate has already written down the
value of its inventory by AU$39 million over the past year and
reported a AU$44-million first-half loss.

In the first half of 2006, Evans & Tate has taken steps to sell
its Griffith and Mildura Wineries to reduce debts, which are
estimated to be more than AU$160 million, and meet restructuring
costs.

On August 25, 2006, it has completed the sale of its Griffith
winery in the New South Wales Riverina to TWG Australia, which
is the Australian subsidiary of California-based The Wine Group
LLC, for AU$8 million.  The Griffith Winery Sale, the TCR-AP had
noted, brings the amount that Evans & Tate will get from asset
realization to more than AU$30 million.

Furthermore, a company statement disclosed that on August 29,
2006, the sale of its Mildura Winery to Roberts Estate was
completed for a total consideration of AU$22 million.


J&P FERGUSSON: Creditors Must Prove Debts by November 8
-------------------------------------------------------
J&P Fergusson Pty Ltd, which is in liquidation, will declare the
first dividend for its creditors on November 22, 2006.

Failure to file proofs of debt by November 8, 2006, will exclude
a creditor from sharing in the dividend distribution.

The liquidator can be reached at:

         R. J. Porter
         Moore Stephens
         Level 6, 460 Church Street
         Parramatta, New South Wales 2150
         Australia


JAMES HARDIE: Final Funding Deal with Govt. Extended to Nov. 14
---------------------------------------------------------------
James Hardie Industries Limited and the NSW Government have
agreed to further extend the deadline to satisfy certain
conditions precedent to the Final Funding Agreement until
November 14, 2006.  The current deadline expired on October 31,
2006.

According to James Hardie, the extension signifies that it
remains involved in discussions with the NSW Government and the
Australian Taxation Office to resolve outstanding issues
relating to the tax treatment of the Special Purpose Fund.

Since receipt in June 2006 of an adverse declaration on an
application for the proposed SPF to be endorsed as a tax exempt
charity, James Hardie has worked with the NSW Government and
others to make structural changes to some of the elements of the
voluntary compensation arrangements which were the subject of
agreements entered into, and legislation enacted, in December
2005.

In mid-October James Hardie submitted to the ATO a revised FFA
and other draft transaction documents, together with private
ruling applications relating to the tax treatment of the
proposed revised arrangements.

The only outstanding documents yet to be sent to the ATO and
which are required for the ATO to have the full suite of
relevant documents, are final private ruling applications for
Amaca and Amaba, drafts of which have already been provided by
James Hardie to the ATO.

These ruling applications can only be submitted in final form to
the ATO by -- or with the consent of -- Amaca and Amaba, which
are subject to the control of Medical Research and Compensation
Foundation and are subject to the direction of the New South
Wales Government.

James Hardie has recently sought, but not yet received, the
necessary authorizations to enable private ruling applications
to be made to the ATO in respect of Amaca and Amaba.

The ATO has advised James Hardie that all relevant rulings,
including the Amaca and Amaba rulings, will be handled in
accordance with its policy on expedited rulings.

James Hardie has offered to provide interim funding to Amaca in
the event that Amaca's finances would otherwise be exhausted
before the FFA is implemented in full.  Initial negotiations to
settle the commercial terms of the funding have been held, and
it is expected James Hardie will enter into that interim funding
documentation during November.

Meanwhile, James Hardie and other relevant parties are well-
advanced in preparations to secure lender approval, complete an
updated actuarial assessment, obtain an independent expert's
report, and finalize an Explanatory Memorandum for shareholders,
in anticipation of an amended FFA being agreed with the NSW
Government.

It is anticipated that an extraordinary general meeting of
shareholders to approve the implementation of the FFA could be
convened within 10 weeks of James Hardie and the NSW Government
executing an amended FFA, subject to scheduling difficulties
over the Christmas and New Year holiday period.

                      About James Hardie

James Hardie Industries Limited -- http://www.jameshardie.com/
-- manufactures, markets and distributes fiber cement and gypsum
products, fiberglass reinforced plastic and PVC products,
sanitary ware and bathroom products, insulating materials and
fillers, strippers and adhesives.  On July 2, 1998, the then
public company announced a plan of reorganization and capital
restructuring.  James Hardie N.V. was incorporated in August
1998 as an intermediary holding company, with all of its common
stock owned by indirect subsidiaries of JHIL.  Effective as of
November 1998, JHIL contributed its fiber cement businesses, its
United States gypsum wallboard business, its Australian and New
Zealand building systems businesses and its Australian windows
business to JHNV and its subsidiaries.

On July 24, 2001, JHIL announced a further plan of
reorganization and capital restructuring, which reorganization
was completed on October 19, 2001.  In connection with the 2001
Reorganization, James Hardie Industries N.V., formerly RCI
Netherlands Holdings B.V., issued common shares represented by
CHESS Units of Foreign Securities on a one for one basis to
existing JHIL shareholders in exchange for their shares such
that JHINV became the new ultimate holding company for JHIL and
JHNV.  Following the 2001 Reorganization, JHINV controls the
same assets and liabilities as JHIL controlled immediately prior
to the 2001 Reorganization.

The Company's troubles began with its "under-funded" allocation
for asbestos claims, which were brought in by people who suffer
or may have diseases caused by exposure to the asbestos-related
products produced by JHIL.  In 2001, James Hardie set up an
independent entity, Medical Research and Compensation
Foundation, to handle asbestos claims.  The Foundation has
warned that it could run out of money within five years.  The
Asbestos Diseases Foundation of Australia and workers unions
called for all the Company's asbestos profits to be immediately
placed in the fund.  James Hardie was later accused of topping
up the dwindling asbestos fund it established.

By 2004, James Hardie's former asbestos manufacturing
subsidiaries -- Amaca Pty Ltd, Amaba Pty Ltd, and ABN 60 Pty Ltd
-- are three of around 150 defendants in asbestos litigation,
and based on the Foundation's own figures, they account for
US$1,000,000,000 of the predicted US$6,000,000,000 future
asbestos liabilities in Australia.  Although James Hardie
stopped making asbestos products in 1987, the average 35-year
latency of mesothelioma, an asbestos-related disease, means
asbestos compensation funds will be needed until mid-century.

In a 2005 report by a company-hired actuary from KPMG, it was
predicted that 4,915 Australians would contract mesothelioma
from exposure to Hardie products in the coming decades.  When
less serious forms of asbestos-related disease are included,
James Hardie should expect to compensate 8,725 victims.

On December 1, 2005, the Company announced that the NSW
Government and a wholly owned Australian subsidiary of the
Company -- LGTDD Pty Ltd -- had entered into a conditional
agreement to provide long-term funding to a special purpose fund
that will provide compensation for Australian asbestos-related
personal injury claims against certain former James Hardie
asbestos companies.  The amount of the asbestos provision of
AU$1 billion, at March 31, 2006, is the Company's best estimate
of the probable outcome, which estimate includes an actuarial
calculation prepared by KPMG Actuaries Pty Ltd of the projected
future cash outflows, undiscounted and uninflated, and the
anticipated tax deduction arising from Australian legislation
which came into force on April 6, 2006.


JONADA PTY: Creditors to Prove Claims by November 16
----------------------------------------------------
Jonada Pty Ltd, which is in liquidation, will declare the first
and final dividend on December 1, 2006.

Creditors are required to formally prove their debts by
November 16, 2006, for them to share in the dividend
distribution.

The official liquidator can be reached at:

         Greg Meredith
         Ferrier Hodgson
         Level 29, 600 Bourke Street
         Melbourne, Victoria 3000
         Australia


L.U. SIMON: Placed Under Members' Voluntary Wind-Up
---------------------------------------------------
At a general meeting held on August 31, 2006, the members of L.
U. Simon Pty Ltd resolved to voluntarily wind up the company's
operations and appointed Moshe Trebish as liquidator.

The Liquidator can be reached at:

         Moshe Trebish
         c/o Guests Pty Ltd
         234 Balaclava Road
         Caulfield, Victoria 3161
         Australia


KOPPERS HOLDINGS: Reports Problem at Monessen, Pa. Plant
--------------------------------------------------------
Koppers Holdings Inc. reported an operational problem at its
coke facility in Monessen, Pennsylvania.

The company disclosed that production at the plant was
interrupted on Oct. 20, 2006 due to a pipeline failure.  Repairs
have been completed and operations are in the process of
restarting; the company expects production to be back to normal
today.

The company also disclosed that the impact on fourth quarter
pre-tax earnings is expected to be approximately US$600,000 to
US$800,000.

Koppers Holdings Inc., (NYSE: KOP) -- http://www.koppers.com/--  
with corporate headquarters and a research center in Pittsburgh,
Pennsylvania, is an integrated producer of carbon compounds and
treated wood products.  Including its joint ventures, Koppers
operates facilities in the United States, United Kingdom,
Denmark, Australia, China, the Pacific Rim and South Africa.

Koppers Holdings Inc.'s balance sheet at June 30, 2006 showed
total assets of US$625 million and total liabilities of US$733
million resulting in a total stockholders' deficit of US$108
million.  Total stockholders' deficit at Dec. 31, 2005 stood at
US$206 million.


MD VICTORIA: Members & Creditors to Receive Liquidator's Report
---------------------------------------------------------------
A final meeting of the members and creditors of MD Victoria Pty
Ltd will be held on November 10, 2006, at 10:00 a.m., to hear
Liquidator Cooper's final account on the company's wind-up.

The Liquidator can be reached at:

         M. F. Cooper
         Frasers Insolvency Advisory
         Level 5, 99 Elizabeth Street
         Sydney, New South Wales 2000
         Australia


METAL STORM: General Downing Resigns Effective November 1
---------------------------------------------------------
At a meeting held on October 31, 2006, the Board of Metal Storm
Limited accepted the resignation of its director, Gen. Wayne
Downing, effective on November 1, 2006.

General Downing was appointed to the Board in October 1999,
shortly after the company's listing.  He left the Board in late
2001 to take up a position as the US National Director and
Deputy National Security Adviser for combating terrorism.  He
returned to the Board in October 2002.

According to the Chairman of Metal Storm, General Downing's
roles on the Board include Deputy Chairman and Head of the
Remuneration Committee.  "Wayne has been generous with his time
and commitment.  He has been a knowledgeable supporter of the
technology and a bridge between US and Australian interests at
the time the Company was building its operations here and in
America.  The Company owes a debt of great gratitude to General
Downing for his constructive advice and determination to see the
technology well placed and funded," the Chairman says.

The Executive Chairman advises that the Company does not intend
to fill the casual vacancy in the foreseeable future.

                       About Metal Storm

Metal Storm Limited -- http://www.metalstorm.com/-- is  
headquartered in Brisbane, Australia, and incorporated in
Australia, with an office in Arlington, Virginia.  Metal Storm
works with government agencies and departments, as well as
industries, to develop a variety of systems utilizing the Metal
Storm non-mechanical, electronically fired stacked ammunition
system.

Metal Storm reflected a loss of AU$10,914,600 in its Annual
Financial Report for the year ended December 31, 2005, which was
attributable to members of its parent company.  The Directors
noted that they are actively seeking funding to continue the
Company's operations.

After auditing the Company's 2005 Annual Report, Winna Irschitz,
a partner at Ernst & Young, raised significant uncertainty
regarding the Company's and its consolidated entity's ability to
continue as going concerns.

As stated in the 2005 Annual Report, Metal Storm's continuing
viability, and ability to continue as a going concern and to
meet debts and commitments as and when they fall due is
dependent on its ability to secure additional equity funding in
the near future and to continue the development and progress the
commercialization of its electronically initiated "stacked
projectile" weapons systems.


MULATTO NOMINEES: Final Meeting Slated for October 31
-----------------------------------------------------
Mulatto Nominees Pty Ltd, which is in liquidation, will hold a
final meeting for its members and creditors on October 31, 2006,
at 11:00 a.m.

During the meeting, Liquidator McCann will present a report on
the company's wind-up and property disposal exercises.

The Liquidator can be reached at:

         M. G. McCann
         Grant Thornton
         Chartered Accountants
         Level 4, 102 Adelaide Street
         Brisbane, Queensland 4000
         Australia


MULTIPLEX GROUP: Board Reviews Alternatives to Capital Structure
----------------------------------------------------------------
On November 1, 2006, Multiplex Group disclosed that its board of
directors was reviewing alternatives to its existing capital
structure, but did not indicate whether it would move to
separate its property and development businesses, Paddy Manning
of The Australian reports.

The report relates that at its annual general meeting, which is
a stapled entity comprising Multiplex Ltd and Multiplex Property
Trust, Multiplex revealed that there is currently an imbalance
in the allocation of capital between the trust and the company,
which has an impact on its distribution policy.

"The board is currently reviewing alternatives to the existing
capital structure for the group going forward," The Australian
cites Multiplex Chairman Allan McDonald as saying.

"The outcome of these changes may have flow on consequences for
the distribution policy, however, until the review is finalized
it is not possible to quantify what, if any, impact this may
have on future distributions," Mr. McDonald notes.

The funds management and facilities management businesses were
expected to build on the growth achieved in fiscal 2006, while
the trust portfolio was expected to continue to perform well,
the Australian Associated Press notes.

The paper also cites Multiplex Chief Executive Officer Andrew
Roberts as saying that the group had begun a revaluation of its
office portfolio, as required under new international accounting
standards.  Mr. Roberts further says, "while the valuation
process is ongoing, the preliminary results are encouraging and
we estimate fair value adjustments for the half year period in
excess of AU$150 million."

The adjustment would, on a prima facie basis, increase the net
tangible assets per security of the group by about 18c to
AU$3.04, Mr. Roberts notes.

                         About Multiplex

Headquartered at Miller's Point, in New South Wales, Australia,
Multiplex Group -- http://www.multiplex.biz/-- derives its  
revenue from property funds management, construction, property
development, and facilities management.  The Group employs over
2,000 people and has established operations and offices
throughout Australia, New Zealand, the United Kingdom and the
Middle East.  In December 2003, Multiplex Limited listed on the
Australian Stock Exchange as a part of the Multiplex Group,
raising a total of AU$1.2 billion.  Multiplex Group was formed
by combining the various businesses of Multiplex Limited and the
newly established portfolio of investments held by Multiplex
Property Trust.

Early in 2005, Multiplex began facing cost pressures on its
reconstruction project for the Wembley Stadium in London,
prompting it to conduct its own internal investigation into the
Wembley difficulties.  Its auditor, KPMG, later conducted its
own thorough review of the problems, leading to an unpredicted
write-down.  In February 2005, stunned investors sold down
Multiplex shares after the Company reversed its stance on two
United Kingdom projects, writing off AU$68.3 million from its
profits.  This started a series of profit downgrades throughout
2005.

The Company's troubles continue with plunging share prices,
extortion attempts, and threats of class action from disgruntled
shareholders.  The Roberts family, as founder and controlling
shareholder of Multiplex, opted to offer AU$50 million indemnity
in a bid to appease dissatisfied shareholders.  In May 2005,
Multiplex admitted that its troubled Wembley Stadium
construction project may end up with a multimillion loss.  As of
February 2006, the Company is faced with liquidity crisis after
posting a massive AU$474 million loss on Wembley and is
currently in talks to bring down possible delay fees, pegged at
AU$138,000 per day beyond the scheduled March 31, 2006,
completion date.

The Troubled Company Reporter - Asia Pacific reported on
August 18, 2006, that Multiplex Group's financial results for
the year ended June 30, 2006, noted that the Wembley project in
the United Kingdom incurred a pretax loss of AU$364.3 million or
AU$255 million after tax loss.  The project loss position has
remained unchanged since December 31, 2005.


NEPEAN WASTE: Liquidator Judson to Present Wind-Up Report
---------------------------------------------------------
Nepean Waste Removal Pty Ltd will hold a final meeting for its
members on November 1, 2006, at 10:45 a.m.

During the meeting, the members will receive Liquidator Judson's
report regarding the company's wind-up and property disposal
exercises.

The Liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia


ONTRAK RAILWAY: Will Declare Final Dividend on November 10
----------------------------------------------------------
Ontrak Railway Engineers Pty Ltd will declare a final dividend
for its creditors on November 10, 2006.

Creditors who were not able to prove their claims on October 27,
2006, will be excluded from sharing in any distribution the
company will make.

The Official Liquidator can be reached at:

         S. J. Parbery
         PPB
         15th Floor, 25 Bligh Street
         Sydney, New South Wales 2000
         Australia


PETER GYORI: Undergoes Voluntary Liquidation
--------------------------------------------
At a general meeting held on October 12, 2006, the members of
Peter Gyori & Associates Cleaning Services Pty Ltd resolved to
voluntarily liquidate the company's business.

Subsequently, Richard Herbert Judson was appointed as liquidator
at the creditors' meeting held that same day.

The Liquidator can be reached at:

         Richard Herbert Judson
         Judson & Co
         Chartered Accountants
         Suite 4, Level 1, 10 Park Road
         Cheltenham, Victoria 3192
         Australia
         Telephone: 9585 4155


PLASTECH INDUSTRIES: Final Meeting Scheduled on November 3
----------------------------------------------------------
Plastech Industries Pty Ltd, which is in liquidation, will hold
a final meeting for its members and creditors on November 3,
2006, at 10:00 a.m.

At the meeting, Liquidator M. C. Smith will present the final
report regarding the liquidation proceedings.

The Liquidator can be reached at:

         M. C. Smith
         c/o McGrathNicol+Partners
         Level 9, 10 Shelley Street
         Sydney, New South Wales 2000
         Australia


POST HASTE: To Hold Final Meeting on November 10
------------------------------------------------
Members and creditors of Post Haste Productions Pty Ltd will
hold a final meeting on November 10, 2006, at 11:30 a.m., to
receive an account of the company's wind-up and property
disposal exercises from Liquidator Brent Kijurina.

The Liquidator can be reached at:

         Brent Kijurina
         Smith Hancock
         Chartered Accountants
         Level 4, 88 Phillip Street
         Parramatta, New South Wales 2150
         Australia


RYCOMM SYSTEMS: Creditors' Proofs of Claim Due on November 8
------------------------------------------------------------
Rycomm Systems Pty Ltd, which is in liquidation, will declare
the first and final dividend for its creditors on November 22,
2006.

Creditors who cannot prove their debts by November 8, 2006, will
be excluded from sharing in the distribution.

The Liquidator can be reached at:

         R. J. Porter
         Moore Stephens
         Level 6, 460 Church Street
         Parramatta, New South Wales 2150
         Australia


SPRING MOUNT: Schedules Final Meeting on November 1
---------------------------------------------------
Members of Spring Mount Pty Ltd will hold their final meeting on
November 1, 2006, at 11:15 a.m., to receive Liquidator Judson's
account on the company's wind-up and property disposal
exercises.

According to the Troubled Company Reporter - Asia Pacific, the
company has distributed its first and final dividend to its
creditors on October 25, 2006.

The Liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia


STEPHEN D. THOMAS: Members to Hold Final Meeting on November 1
--------------------------------------------------------------
A final meeting for the members of Stephen D. Thomas &
Associates Pty Ltd will be held on November 1, 2006, at 11:00
a.m.

At the meeting, Liquidator Judson will give the accounts
regarding the company's wind-up proceedings.

The Liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia


TIWARRIE PTY: Members to Receive Liquidator's Final Account
-----------------------------------------------------------
Members of Tiwarrie Pty Ltd will hold their final meeting on
November 1, 2006, at 2:00 p.m., to receive Liquidator McCarthy's
final account and explanations regarding the company's wind-up
proceedings.

As reported by the Troubled Company Reporter - Asia Pacific, the
members of the company resolved to wind up its operations on
June 23, 2006.

The Liquidator can be reached at:

         Alfred Mccarthy
         Gregory & McCarthy
         94 Pudman Street
         Boorowa, New South Wales 2586
         Australia


TRANSOL HOLDINGS: Enters Voluntary Liquidation
----------------------------------------------
At an extraordinary general meeting of the members of Transol
Holdings Pty Ltd on October 4, 2006, it was resolved that a
voluntary wind-up of the company is appropriate and necessary.

Subsequently, Stephen Robert Dixon and Laurence Andrew
Fitzgerald were appointed as joint and several liquidators at
the creditors' meeting held that same day.

The Joint and Several Liquidators can be reached at:

         Stephen Robert Dixon
         Laurence Andrew Fitzgerald
         Horwath BRI (Vic) Pty Ltd
         Chartered Accountants
         Level 30, The Rialto
         525 Collins Street
         Melbourne, Victoria 3000
         Australia


TRANSOL PTY: Commences Wind-Up of Operations
--------------------------------------------
Members of Transol Pty Ltd convened on October 4, 2006, and
resolved to voluntarily wind up the company's operations.

At the creditors' meeting held consequently that day, Stephen
Robert Dixon and Laurence Andrew Fitzgerald were appointed as
joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Stephen Robert Dixon
         Laurence Andrew Fitzgerald
         Horwath BRI (Vic) Pty Ltd
         Chartered Accountants
         Level 30, The Rialto
         525 Collins Street
         Melbourne, Victoria 3000
         Australia


VAPORATE PTY: Creditors Resolve to Wind-Up Firm
-----------------------------------------------
Creditors of Vaporate Pty Ltd on October 13, 2006, resolved to
wind up the company's operations and appointed Gideon Rathner
and David Coyne as joint and several liquidators.

The Joint and Several Liquidators can be reached at:

         Gideon Rathner
         David Coyne
         Lowe Lippmann
         Chartered Accountants
         5 St Kilda Road
         St Kilda, Victoria 3182
         Australia


VAPORATE TRADING: Creditors Resolve to Close Business
-----------------------------------------------------
At a meeting held on October 13, 2006, the creditors of Vaporate
Trading Pty Ltd resolved to close the company's business.

Gideon Rathner and David Coyne were consequently appointed as
joint and several liquidators.

The Liquidators can be reached at:

         Gideon Rathner
         David Coyne
         Lowe Lippmann
         Chartered Accountants
         5 St Kilda Road
         St Kilda, Victoria 3182
         Australia


WAPF INVESTMENTS: Members' Final Meeting Set for November 7
-----------------------------------------------------------
WAPF Investments Pty Ltd, which is in liquidation, will hold a
final meeting for its members on November 7, 2006, at 10:00 a.m.

During the meeting, the members will receive Liquidator John
Sheridan's report and explanations on the accounts of wind-up.

The Liquidator can be reached at:

         John Sheridan
         Suite 2, 600 Military Road
         Mosman, New South Wales 2088
         Australia


WILLY & RAOS: To Declare Third and Final Dividend on November 2
---------------------------------------------------------------
Willy & Raos Paper International Pty Ltd, which is in
liquidation, will declare the third and final dividend for its
creditors on November 2, 2006.

Creditors who cannot submit their proofs of claim on October 31,
2006, will be excluded from the benefit of the dividend.

The Official Liquidator can be reached at:

         Michael E. Wayland
         Wayland Management Pty Limited
         Level 4, 23 Hunter Street
         Sydney, New South Wales 2000
         Australia


WOODREIN PTY: Members to Receive Wind-Up Report
-----------------------------------------------
Members of Woodrein Pty Ltd will meet on November 1, 2006, at
10:30 a.m., to receive accounts of the company's wind-up and
property disposal exercises from Liquidator Richard Judson.

As reported by the Troubled Company Reporter - Asia Pacific, the
company declared its first and final dividend on October 25,
2006.

The Liquidator can be reached at:

         Richard Judson
         Members Voluntarys Pty Ltd
         1st Floor, 10 Park Road
         Cheltenham 3192
         Australia


================================
C H I N A   &   H O N G  K O N G
================================

ACXIOM CORP: Posts US$21.7MM Earnings for 2nd Quarter 2007
----------------------------------------------------------
Acxiom Corp. reported financial results for the second quarter
of fiscal 2007 ended Sept. 30, 2006.  Consolidated net earnings
for the quarter increased 204% to US$21.7 million.  Gross margin
increased to 27.5% from 26.2% in the same quarter a year ago.
Second-quarter revenue totaled US$348.3 million, an increase of
5.4% over the same quarter last year.

"We are pleased that Acxiom delivered another solid performance
in the second quarter and remains on track to meet the fiscal
2007 targets we communicated at our Sept. 27 analysts' meeting
in New York," Company Leader Charles D. Morgan said.  "We
continue to execute the fundamentals of our business and are
delivering the results that we expected.  I believe we are well
positioned for a successful second half of the fiscal year."

                         Highlights:

   -- Revenue of US$348.3 million, up 5.4% from US$330.5 million
      in the second quarter a year ago.

   -- Income from operations of US$41.9 million, a 123% increase
      compared to US$18.8 million in the second quarter last
      year.  Last year's second-quarter results included the
      impact of net pretax charges of US$15.8 million associated
      with restructuring, the sale of non-strategic operations
      and other unusual items.  Excluding the impact of those
      charges, income from operations would have been up 21%.  

   -- Diluted earnings per share of US$.25, a 213% increase
      compared to US$.08 in the second quarter of fiscal 2006.
      The impact of the net charges described above reduced
      diluted EPS by US$.12 for the second quarter last year.
      Excluding this impact, diluted earnings per share
      increased 25%.

   -- Operating cash flow of US$64.4 million and free cash flow
      available to equity of US$15.3 million.

   -- Gross margin of 27.5% compared to 26.2 percent in the same
      quarter last year.

   -- Computer, communications and other equipment expense
      equaling 20.9% of revenue compared to 23.1 percent of
      revenue in the second quarter of fiscal 2006.

"The improvement in our earnings and margins -- assisted by
reduced computer expense as a percentage of revenue -- shows the
increasing strength of our business and the results of our
initiatives to improve operational efficiencies," Mr. Morgan
said.

Mr. Morgan also noted that Acxiom recently completed new
contracts with Procter & Gamble Co., E*TRADE FINANCIAL Corp.,
D&B and Safety-Kleen Systems, Inc.

Based in Little Rock, Arkansas, Acxiom Corp. (Nasdaq: ACXM) --
http://www.acxiom.com/-- integrates data, services and  
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world.  The core components of Acxiom's
innovative solutions are Customer Data Integration technology,
data, database services, IT outsourcing, consulting and
analytics, and privacy leadership.  Founded in 1969, Acxiom has
locations throughout the United States, Europe, Australia and
China.  Acxiom has a team of specialists with sales and business
development associates based in the largest Latin American
markets: Brazil, Argentina and Mexico.

                        *    *    *

Standard & Poor's Ratings Services assigned on Sept. 6, 2006,
its loan and recovery ratings to Little Rock, Arkansas-based
Acxiom Corp.'s proposed US$800 million secured first-lien
financing.  The first-lien facilities consist of a US$200
million revolving credit facility and a US$600 million term
loan.  They are rated 'BB' with a recovery rating of '2'.

As reported in the Troubled Company Reporter on Aug. 25, 2006,
Moody's Investors Service assigned a Ba2 rating to Acxiom
Corporation's US$800 million senior secured credit facilities,
while affirming its corporate family rating of Ba2.  Moody's
said the rating outlook is stable.


BALL CORP: Reports US$101.5MM Earnings for Third Quarter 2006
-------------------------------------------------------------
Ball Corp. reported third quarter earnings of US$101.5 million,
on sales of US$1.82 billion, compared with US$79.3 million, on
sales of US$1.58 billion in the third quarter of 2005.

For the first nine months of 2006, Ball Corp.'s saw earnings of
US$278.8 million, on sales of US$5.03 billion, compared with
US$216.9 million on sales of US$4.46 billion in the first three
quarters of 2005.

Ball Corp.'s 2006 results include a gain of US$2.8 million
(US$1.7 million after tax) in the third quarter and US$76.9
million (US$46.9 million after tax) in the first nine months for
insurance recovery from a fire that occurred April 1 at a
beverage can manufacturing plant in Germany.  The 2005 third
quarter results include net after-tax costs of US$12.5 million,
connected with debt refinancing and with a program to streamline
the company's beverage can end manufacturing processes.  The
nine-month 2005 results included net after-tax costs of US$18.4
million, related to business consolidation and debt refinancing
activities.

R. David Hoover -- the chairperson, president and chief
executive officer of Ball Corp. -- said, "Overall, we were
pleased with our third quarter results, especially considering
the increased cost pressures we continue to experience
throughout the corporation.  We are making progress on profit
improvement and pricing initiatives that are essential to our
achieving acceptable returns.  We also are making good progress
on integrating the acquisitions we made earlier this year and on
completing important projects to improve operating
efficiencies."

                 Metal Beverage Packaging

Americas

Earnings in the quarter for the metal beverage packaging
Americas segment were US$63.7 million, on sales of US$659.6
million, compared with US$49.4 million, including a US$19.3
million charge for costs associated with streamlining can end
manufacturing processes, on sales of US$636.1 million in the
third quarter of 2005.  For the first nine months segment
earnings were US$182.9 million on sales of US$1.99 billion,
compared with US$177.4 million, including the US$19.3 million
charge, on sales of US$1.85 billion in the first three quarters
of 2005.  Inventory adjustment had a negative effect of US$9.3
million on segment earnings in the third quarter of 2006,
compared with US$2.7 million in 2005.

Mr. Hoover notes, "We made further progress on our project to
streamline our beverage can end manufacturing.  We expect to
cease end manufacturing at our Reidsville, N.C., plant in the
fourth quarter.  We will supply those ends from other facilities
and as a result should begin to realize in 2007 some of the
savings anticipated from this multi-year, multi-plant project."

Europe/Asia

Third quarter earnings in the metal beverage packaging
Europe/Asia segment were US$66 million, including US$2.8 million
in property insurance gains, on sales of US$425.1 million,
compared with US$56.7 million on sales of US$366.1 million in
the third quarter of 2005.  For the first nine months segment
earnings were US$235.7 million, including US$76.9 million in
property insurance gains, on sales of US$1.16 billion, compared
with US$145 million on sales of US$1.06 billion in the same
period in 2005.

Mr. Hoover stated, "The loss of production volume resulting from
the April 1 fire made for an extremely tight beverage can supply
situation for us in Europe this summer.  Our new plant in Serbia
and improved performance at other facilities helped bridge a
portion of the volume gap, but that contribution was partially
offset by higher material, freight and energy costs.  In China,
the demand for beverage cans continues to grow and we continue
to work through a year where high raw material prices have hurt
results, but where stringent cost controls have been put in
place and plant performance has improved."

            Metal Food & Household Products Packaging

Americas

Earnings for the third quarter in the metal food and household
products packaging Americas segment were US$19.4 million on
sales of US$381.3 million, compared with US$10.1 million on
sales of US$292.2 million in the third quarter of 2005.  For the
first nine months of 2006, earnings were US$33.2 million,
including a US$1.7 million charge for costs to shut down a food
can manufacturing line in Whitby, Ontario, on sales of US$884.8
million, compared to US$16.7 million, including a US$8.8 million
charge to shut down a food can manufacturing plant in Quebec, on
sales of US$655.5 in the same period in 2005.  Ball Corp.
acquired U.S. Can Corporation on March 27, 2006, and results
from the acquired business have been included in the metal food
and household products packaging segment since that date.

Mr. Hoover said, "We continue to consolidate the assets acquired
from U.S. Can with those of our legacy metal food can
operations.  Those activities led to our announced decision to
close plants in Alliance, Ohio, and Burlington, Ontario, later
this year with anticipated annual cost savings of approximately
US$8 million."

                Plastic Packaging, Americas

Earnings for the third quarter in the plastic packaging Americas
segment were US$8.3 million on sales of US$185.9 million,
compared with US$4.2 million on sales of US$124.7 million in the
third quarter of 2005.  Through the first three quarters of
2006, segment earnings were US$17.1 million on sales of US$486.8
million, compared with US$12.2 million on sales of US$373.9 in
the first three quarters of 2005.  The 2006 results include
those of assets acquired from Alcan on March 28, 2006.

Mr. Hoover noted, "We have completed the relocation of some of
the equipment acquired from Alcan Plastics into other plants and
have consolidated the R&D functions associated with the acquired
business into our overall packaging R&D operations in Colorado.  
Some of the activities from the Alliance plant will be
consolidated into one of the facilities we acquired from Alcan
Plastics as part of the ongoing integration of our manufacturing
assets."

                Aerospace and Technologies

Earnings were US$15.6 million on sales of US$170.4 million
during the third quarter of 2006 in the aerospace and
technologies segment, compared with US$15.2 million on sales of
US$164.8 million in the third quarter of 2005.  For the first
three quarters, earnings were US$33.4 million on sales of
US$505.7 million, compared with US$39 million on sales of
US$527.5 in the first three quarters of 2005.

Mr. Hoover said, "Excellent performance on several fixed price
programs that ended in the quarter helped boost third quarter
results in aerospace and technologies.  That kind of continued
performance, along with some hopeful signs we are beginning to
see in the awarding and funding of certain scientific and
defense contracts, we believe bode well for this segment as we
look to next year."

                          Outlook

Raymond J. Seabrook, executive vice president and chief
financial officer, said he anticipates full-year free cash flow
to be in the range of US$250 million.

Mr. Seabrook stated, "The seasonal working capital build we have
seen through the first nine months will be largely eliminated in
the fourth quarter.  We will continue our focus on free cash
flow generation in the future as some of the major capital
spending projects we have been engaged in wind down and we begin
to realize the benefits from them.  At mid-year we said we
expected results for the second half of 2006 would be better
than those of the first half, excluding property insurance
recovery related to the fire in Germany.  Our solid third
quarter results now make us confident of that outcome."  

"The cost recovery initiatives we have and will continue to
implement throughout our reporting segments will be critical to
sustaining and improving our performance in 2007.  Some of those
initiatives have been announced and already are being
implemented, and others are being discussed and developed with
suppliers and customers," Mr. Hoover noted.

Headquartered in Broomfield, Colorado, Ball Corp. --
http://www.ball.com/-- is a supplier of high-quality metal and  
plastic packaging products.  It owns Ball Aerospace &
Technologies Corp. -- a developer of sensors, spacecraft,
systems and components for government and commercial customers.  
Ball Corp. reported sales of US$5.7 billion in 2005 and the
company employs about 13,100 people worldwide, including
Argentina, Hong Kong and China.

                        *    *    *

Moody's Investors Service assigned ratings to Ball Corp.'s
US$500 million senior secured term loan D, rated Ba1, and US$450
million senior unsecured notes due 2016-2018, rated Ba2.  It
also affirmed existing ratings, which include Ba1 Ratings on
US$1.475 billion senior secured credit facilities and US$550
million senior unsecured notes due Dec. 12, 2012.  Moody's said
the ratings outlook is stable.

Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+'
senior secured credit facilities, and 'BB' senior unsecured
notes.

Standard & Poor's Ratings Services also affirmed its 'BB+'
corporate credit rating on Ball Corp. All ratings were placed by
S&P in March 2006.


BALL CORP: Declares US$0.10 Per Share Cash Dividend
---------------------------------------------------
Ball Corp.'s board of directors declared a cash dividend of 10
cents per share, payable Dec. 15, 2006, to shareholders of
record on Dec. 1, 2006.

Headquartered in Broomfield, Colorado, Ball Corp. --
http://www.ball.com/-- is a supplier of high-quality metal and  
plastic packaging products.  It owns Ball Aerospace &
Technologies Corp. -- a developer of sensors, spacecraft,
systems and components for government and commercial customers.  
Ball Corp. reported sales of US$5.7 billion in 2005 and the
company employs about 13,100 people worldwide, including
Argentina, Hong Kong and China.

                        *    *    *

Moody's Investors Service assigned ratings to Ball Corp's US$500
million senior secured term loan D, rated Ba1, and US$450
million senior unsecured notes due 2016-2018, rated Ba2.  It
also affirmed existing ratings, which include Ba1 Ratings on
US$1.475 billion senior secured credit facilities and US$550
million senior unsecured notes due Dec. 12, 2012.  Moody's said
the ratings outlook is stable.

Fitch affirmed Ball Corp.'s 'BB' issuer default rating, 'BB+'
senior secured credit facilities, and 'BB' senior unsecured
notes.

Standard & Poor's Ratings Services also affirmed its 'BB+'
corporate credit rating on Ball Corp.

All ratings were placed in March 2006.


BANTA CORP: High Leverage Prompts Moody's to Assign Ba2 Rating
--------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to the proposed
senior secured bank credit facility of Banta Corp.  The majority
of the proceeds of the proposed facility will fund an
approximately US$390 million special shareholder dividend.  
Moody's also assigned a Ba2 corporate family rating, a Ba3
probability of default rating, and an SGL-1 speculative grade
liquidity rating to Banta.  The outlook is stable.

The Ba2 corporate family rating reflects relatively high
leverage at closing (3.9 times debt-to-EBITDA), weak industry
prospects, modest EBITDA margins (in the 11-12% range as per
Moody's standard adjustments) and event risk.  

The rating also reflects relatively good liquidity, including
expectations for positive free cash flow; a fairly restrictive
credit agreement that somewhat mitigates event risk; and the
company's meaningful scale in comparison to other industry
participants.

Ratings assigned:

Banta Corp.

    * Ba2 Corporate Family Rating
    * Ba3 Probability of Default Rating
    * Ba2 Senior Secured Bank Rating, LGD3, 39
    * SGL-1 Speculative Grade Liquidity Rating
    * Outlook: Stable

The credit agreement consists of a US$465 million senior secured
term loan and a US$50 million revolving credit facility,
expected to be undrawn at close.  Pro forma for the transaction,
Moody's estimates Banta's leverage will rise to 3.9 times debt-
to-EBITDA (as per Moody's standard adjustments and based on
trailing 12 months results through June 30).

Expectations for continued positive free cash flow (after
capital expenditures and the regular annual dividend of
approximately US$18 million) support the stable outlook.  
Moody's anticipates Banta will apply a portion of its free cash
flow to debt repayment, resulting in a decline in leverage to
approximately 3 times debt-to-EBITDA by year end 2007 (as per
Moody's standard adjustments).

The SGL-1 rating indicates very good liquidity, based on:

   -- Moody's expectation of positive free cash flow over
      the next 12 months,

   -- full availability under the planned
      US$50 million revolver, and

   -- covenant cushion (to be finalized) of at least 15%.

Moody's would consider a downgrade or negative outlook if Banta
increased leverage to fund a shareholder reward beyond the
announced US$16 special dividend and modest share repurchase.
Deterioration in margins to the single digit level (as per
Moody's standard adjustments), whether the result of an
inability to cut costs as projected, poor execution of proposed
initiatives in its supply chain management segment, or industry
conditions could also pressure the rating down.

The company is the subject of a hostile bid by Cenveo, and
concerns over event risk limit upward ratings momentum.  
Evidence of moderating event risk and the ability and
willingness to repay debt with free cash flow could over time
result in an upgrade or positive outlook.

Banta Corp. provides a combination of printing and digital
imaging solutions to publishers and direct marketers through its
printing services segment, and a range of outsourcing
capabilities through its supply-chain management services.  With
headquarters in Menasha, Wisconsin, the company generates
approximately US$1.5 billion of annual revenue, deriving about
three-fourths of that amount from its printing services segment.

                          *     *      *

Headquartered in Menasha, Wisconsin, Banta Corp. --
http://www.banta.com/-- is a technology and market leader in  
printing and supply-chain management services.  The company
focuses on five printing services markets: books, special-
interest magazines, catalogs, direct marketing and literature
management.  Its global supply-chain management business
provides a wide range of outsourcing capabilities to some of the
world's largest companies.  Services range from materials
sourcing, product configuration and customized kitting, to order
fulfillment and global distribution.  The company has operations
in Ireland, Hungary, The Netherlands, Scotland, Singapore and
China.


BANTA CORP: Board Rejects Cenveo's Acquisition Proposal
-------------------------------------------------------
Banta Corp.'s Board of Directors has unanimously rejected
Cenveo, Inc.'s unsolicited proposal to acquire Banta for US$47
per share after consulting with its financial and legal
advisors.  The Board determined that the proposal is not in the
best interests of Banta shareholders or its other constituents.

The Board has also authorized management, in consultation with
its financial advisor, UBS Investment Bank, to explore all
potential strategies for further maximizing shareholder value,
including, but not limited to, remaining independent, joint
ventures, mergers, acquisitions, further return of capital, or
the sale of the company.

Banta advised that there can be no assurances that the
evaluation will result in a transaction of any kind.  The
company also advised that it does not intend to disclose
developments regarding its evaluation unless, and until, a final
decision is made.

Stephanie A. Streeter, Banta Chairman, President and Chief
Executive Officer, said, "After a thorough review with our
financial and legal advisors, our Board has rejected Cenveo's
proposal.  While the Board and management continue to have
complete confidence in Banta's current long-term strategy and
believe Banta is well positioned to thrive as an independent
company, the Board remains committed to continuing to seek
opportunities to further enhance value for all Banta
shareholders.  Consistent with that commitment and its fiduciary
obligations, the Board believes it is an appropriate time to
undertake a comprehensive process to identify and study all of
the value-creating options available to the company."

The company also disclosed that the unsolicited proposal from
Cenveo has automatically triggered the requirement to fund a
trust, which will hold restricted cash assets available to cover
payments, both immediate and long-term, due to certain retired
and active Banta employees.  These payments include deferred
compensation and retirement benefits already earned by these
employees, as well as potential compensation and benefits that
may become due to current employees in connection with a change
in control.

The requirement to irrevocably fund the trust, which was adopted
by Banta's Board in January 1990 and has been disclosed
regularly in SEC filings since then, was triggered solely by the
recent actions taken by Cenveo, and was not the result of any
action by the Banta Board of Directors.  Banta said that
approximately US$100 million has been used to fund the trust.  
In the event that a change in control does not occur within the
time period provided under the trust, the trust assets will be
released by the trustee and returned to the control of Banta.

On Sept. 14, the company provided guidance for continuing
operations for full-year 2006, 2007 and 2008.  The company has
reaffirmed this prior guidance.

Headquartered in Menasha, Wisconsin, Banta Corp. --
http://www.banta.com/-- is a technology and market leader in  
printing and supply-chain management services.  The company
focuses on five printing services markets: books, special-
interest magazines, catalogs, direct marketing and literature
management.  Its global supply-chain management business
provides a wide range of outsourcing capabilities to some of the
world's largest companies.  Services range from materials
sourcing, product configuration and customized kitting, to order
fulfillment and global distribution.  The company has operations
in Ireland, Hungary, The Netherlands, Scotland, Singapore and
China.

                         *     *     *

Moody's Investors Service assigned a Ba2 rating to the proposed
senior secured bank credit facility of Banta Corp.  The majority
of the proceeds of the proposed facility will fund an
approximately US$390 million special shareholder dividend.

Moody's also assigned a Ba2 corporate family rating, a Ba3
probability of default rating, and an SGL-1 speculative grade
liquidity rating to Banta.  Moody's said the outlook is stable.


BOMBARDIER INC: Moody's Rates EUR1.8-Bln Sr. Unsec. Notes at Ba2
----------------------------------------------------------------
Moody's Investors Service assigned its Ba2 rating to Bombardier
Inc.'s proposed EUR1.8 billion in new senior unsecured notes and
affirms all current ratings.  

On Oct. 23, Bombardier opened its offer to tender for cash for
approximately EUR1 billion of its debt maturing in 2007 and
2008.  The tender offer will be funded with the proceeds of the
new debt issuances maturing in 2013 - 2016.  Proceeds will also
be utilized to support a cash collateral requirement (EUR860
million) associated with its proposed new bank letter of credit
facility.

The assignment of the Ba2 senior unsecured debt rating
considered that the new notes have a similar priority of claim
to the notes targeted for tender.  The exchange, if completed
will extend and smooth the company's debt maturity profile,
which previously included relatively large maturities in 2007
and 2008.  The issuance does not change the LGD assessment of
Bombardier's debt, and the new notes will carry the same LGD4,
54% assessment as the company's existing senior unsecured debt.

Bombardier's Ba2 debt rating considers its market share and
installed base in the business and regional jet aerospace
segment and improving results in the transportation sector.  The
combination of the debt issuance, the tender for the near term
maturing debt and completion of the renewal of the company's
bank lines of credit will add to the company's high debt levels
but will also will stabilize the company's liquidity profile and
reduce near term funding uncertainties.  On balance, Moody's
considers that the completion of these financial actions will be
modestly positive for the overall credit profile.

Bombardier's outlook remains negative and reflects business
uncertainties in the company's aerospace segment.  The
expectation is for continued weak demand for its regional jet
product highlighted by the recently announced reductions in
production rates.  Weakness in this important but problematic
segment is only partially offset by the favorable near term
business jet outlook and recent margin improvements in the
company's transportation segment.

                          *     *     *

Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) --
http://www.bombardier.com/-- manufactures innovative   
transportation solutions, from regional aircraft and business
jets to rail transportation equipment.  The company has
operations in North America, Europe and China.


BOMBARDIER INC: Operating Pressures Prompt S&P to Affirm Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit rating on Montreal, Que.-based Bombardier Inc.

At the same time, Standard & Poor's assigned its 'BB' issue
rating to Bombardier's proposed issuance of up to EUR1.8 billion
seven-to-ten-year multitranche senior unsecured notes.  The
notes are to be used to refinance EUR1.175 billion of debt
maturing on or before Feb. 22, 2008.  The remainder will form
part of the collateral required for a new LOC issuance credit
facility to be arranged after the completion of the bond issue.  
The outlook is negative.

"The ratings on Bombardier reflect the competitive and operating
challenges it faces in its commercial aircraft business, the
company's volatile and somewhat unpredictable operating cash
flows, and the low profitability of its transportation
division," said Standard & Poor's credit analyst Greg Pau.

The ratings are supported by:

   -- the company's business aircraft segment;

   -- the slowly improving profitability at its transportation
      division;

   -- its relatively low capital expenditure requirements in
      the next few years; and

   -- its financial policies, which are focused on
      restoring balance-sheet stability.

"The ratings factor in our expectation that Bombardier will
successfully execute the proposed bond issuance.  Any material
delay or failure to complete the bond issuance could result in a
weaker liquidity position and trigger a review of the ratings,"
Mr. Pau added.

Bombardier's regional aircraft division continues to struggle,
and Standard & Poor's expects that the company's performance
will continue to suffer for the balance of the current year and
possibly in subsequent years.  The company's net orders and
backlog, particularly for regional jets, remain weak.  The
outlook continues to be uncertain, as the prospects for the U.S.
airline industry, Bombardier's principal market for regional
jets, remain unsettled and financing for expansion or fleet
renewal is still difficult to obtain.  The company's turboprop
division is providing some offset to this weakness, with a
better backlog and less exposure to the U.S. airline industry.
Strong business aircraft demand and improved cost efficiency in
the transportation segment partly offset the impact of the weak
regional aircraft division.

The outlook is negative, indicating the slow progress in
Bombardier's efforts to consistently generate free cash flow and
restore balance-sheet strength.

The ratings could be lowered if:

   -- the company's prospective liquidity position weakened;

   -- profit margins do not improve, resulting in expectations
of
      weak free cash flow; or

   -- the company's balance sheet does not stabilize (which
could
      be caused by weak free cash generation, expansion of
      aircraft program spending, or a widening pension deficit).

A near-term return to a stable outlook is considered unlikely
and would primarily require an improvement in prospects for the
commercial aerospace business while maintaining current
performance in the business jet and transportation divisions.
Although not currently contemplated by the company, a material
change in capital structure toward material reduction in
leverage through equity injection could be a positive
development that could trigger an outlook revision or an
upgrade.

Headquartered in Valcourt, Quebec, Bombardier Inc. (TSX: BBD) --
http://www.bombardier.com/-- manufactures innovative   
transportation solutions, from regional aircraft and business
jets to rail transportation equipment.  The company has
operations in North America, Europe and China.


CELESTICA INC: Incurs US$42.1 Million Net Loss in Third Quarter
---------------------------------------------------------------
Celestica Inc. reported revenue of US$2.3 billion for the third
quarter ended Sept. 30, 2006, up 20% from US$1.9 billion in the
third quarter of 2005.

Net loss on a GAAP basis for the third quarter was US$42.1
million, compared to GAAP net loss of US$19.6 million for the
same period last year.  Included in GAAP net loss for the
quarter are charges of US$82 million associated with previously
announced restructuring plans. For the same period in 2005,
restructuring charges of US$41 million were incurred.

Adjusted net earnings for the quarter were US$40.5 million,
compared to US$27.1 million for the same period last year .
Adjusted net earnings is defined as net earnings before
amortization of intangible assets, gains or losses on the
repurchase of shares and debt, integration costs related to
acquisitions, option expense, option exchange costs and other
charges, net of tax and significant deferred tax write-offs.  
These results compare with the company's guidance for the third
quarter, announced on July 27, 2006, of revenue of US$2.15 to
US$2.35 billion.

For the nine months ended Sept. 30, 2006, revenue was US$6,550
million compared to US$6,396 million for the same period in
2005. Net loss on a GAAP basis was US$89.8 million compared to
net loss of US$18.6 million for the same period last year.  
Adjusted net earnings for the first nine months of 2006 were
US$87 million compared to adjusted net earnings of US$100.2
million for the same period in 2005.

"Revenues were very strong sequentially and year over year
driven primarily by the growth realized in our consumer segment.  
Other segments were solid as well in this seasonally lower
quarter," said Steve Delaney, CEO, Celestica.  "I'm pleased with
the added diversification and the improvement in operating
margins, despite the setbacks we've had in the performance of
some of our facilities in the Americas and Eastern Europe.  We
remain focused on overcoming these challenges and accelerating
the improvement in our returns on capital."

For the fourth quarter ending Dec. 31, 2006, the company
anticipates revenue to be in the range of US$2.25 billion to
US$2.45 billion.

                        About Celestica

Headquartered in Toronto, Ontario, Celestica, Inc. (NYSE:
CLS,TSX: CLS/SV) -- http://www.celestica.com/-- is a world  
leader in the delivery of innovative electronics manufacturing
services.  Celestica operates a highly sophisticated global
manufacturing network with operations in Brazil, China, Ireland,
Italy, Japan, Malaysia, Philippines, Puerto Rico, and the United
Kingdom, among others, providing a broad range of integrated
services and solutions to original equipment manufacturers.  
Celestica's expertise in quality, technology and supply chain
management, enables the company to provide competitive advantage
to its customers by improving time-to-market, scalability and
manufacturing efficiency.  

                         *     *     *

Moody's has affirmed its Ba3 Corporate Family Rating for
Celestica International.  Celestica carries Fitch's 'BB-' issuer
default and unsecured credit facility ratings.  Fitch also
assigned a 'B+' rating to the company's senior subordinated
debt.  Fitch said the Rating Outlook is Stable.

In February 2005, Moody's Investors Service lowered Celestica's
senior implied rating to Ba3 from Ba2, senior unsecured issuer
rating to B1 from Ba3 and the subordinated notes rating to B2
from Ba3.


COOPER TIRE: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Automotive and Equipment sectors, the
rating agency confirmed its B2 Corporate Family Rating for
Cooper Tire & Rubber Company.  Additionally, Moody's revised or
held its probability-of-default ratings and assigned loss-given-
default ratings on these loans and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   7.75% unsecured
   notes                B2       B2       LGD 4    57%

   8.0% unsecured
   notes                B2       B2       LGD 4    57%

   7.625% unsecured
   notes                B2       B2       LGD 4    57%

   Shelf senior
   unsecured           (P)B2    (P)B2     LGD 4    57%

   Shelf preferred     (P)Caa2  (P)Caa1   LGD 6    97%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Cooper Tire & Rubber Company is a global company that
specializes in the design, manufacture, marketing and sales of
passenger car, light truck, medium truck tires and subsidiaries
that specialize in motorcycle and racing tires, as well as tread
rubber and related equipment for the retread industry. With
headquarters in Findlay, Ohio, Cooper Tire has 59 manufacturing,
sales, distribution, technical and design facilities within its
family of companies located around the world. Cooper also owns
the Avon Tyres brand, mostly used to produce tires for racing.

The company has operations in China.


DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit
---------------------------------------------------
DaimlerChrysler AG is not planning to sell its Chrysler division
as the U.S.-German carmaker disclosed of an "aggressive" review
of the unit, The Financial Times says.

Bodo Uebber, DaimlerChrysler's Finance Director, said the
company would review all options, including structural changes,
to turn around its U.S. unit.  Mr. Uebber, however, ruled out a
sale or partnership for the Chrysler unit.

"DaimlerChrysler reaffirms its previous statements made to the
media that there are no plans to sell Chrysler Group," the
company said in a statement.  "The company appropriately chose
not to add to the speculation regarding this topic.  However,
the resulting coverage and comments made it clear that this
'not-for-sale' statement needed to be reaffirmed."

As reported in the Troubled Company Reporter on Oct. 26,
Chrysler posted an operating loss of US$1.477 billion in the
third quarter of 2006, compared with an operating profit of
US$393 million in the same period last year.

The operating loss, according to a statement by DaimlerChrysler,
was primarily the result of a decrease in worldwide factory unit
sales, an unfavorable shift in product and market mix, and
negative net pricing.  

"These factors reflect a continuing difficult market environment
in the United States as the Chrysler Group faced increased
dealer inventory levels from the prior quarter, a shift in
consumer demand toward smaller vehicles due to higher fuel
prices, and increased interest rates," DaimlerChrysler added.

                        About DaimlerChrysler

DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- engages  
in the development, manufacture, distribution, and sale of
various automotive products, primarily passenger cars, light
trucks, and commercial vehicles worldwide.  It primarily
operates in four segments: Mercedes Car Group, Chrysler Group,
Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names. It also sells parts and accessories
under the MOPAR brand.  DaimlerChrysler has operations in
Australia, China, Indonesia, Japan, Korea, Malaysia, and
Thailand. In Latin America, Daimler/Chrysler is present in
Argentina, Brazil and Venezuela.

The Chrysler Group is facing a difficult market environment in
the United States with excess inventory, non-competitive legacy
costs for employees and retirees, continuing high fuel prices
and a stronger shift in demand toward smaller vehicles.  At the
same time, key competitors have further increased margin and
volume pressures -- particularly on light trucks -- by making
significant price concessions.  In addition, increased interest
rates caused higher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Group
as quickly and comprehensively, measures to increase sales and
cut costs in the short term are being examined at all stages of
the value chain, in addition to structural changes being
reviewed as well.


DAIMLERCHRYSLER AG: Losses Continue at Chrysler Group
-----------------------------------------------------
DaimlerChrysler AG achieved a third quarter operating profit of
US$1.1 billion, compared to US$2.3 billion of operating profit
for the same period in 2005.  Net income amounted to US$686
million in the third quarter, compared to US$1.085 billion in
2005.

The continuation of the very positive earnings trend at the
Mercedes Car Group, the distinct increase in operating profit at
the Truck Group as well as the Financial Services' operating
profit, which is above the high level of earnings in the prior-
year quarter, only partially compensated for the loss
contributed by the Chrysler Group.

DaimlerChrysler sold 1.0 million vehicles worldwide in the third
quarter, not equaling the high level recorded in Q3 2005.  As a
result of the lower unit sales, the Group's revenues decreased
from US$48.4 billion to US$44.6 billion. Adjusted for currency-
translation effects, the decrease was 5%.

At the end of the third quarter of 2006, DaimlerChrysler
employed a workforce of 365,451 people worldwide (end of Q3
2005: 388,014).  Of this total, 168,965 were employed in Germany
and 95,647 were employed in the United States.

                         Division Results

Mercedes Car Group

The Mercedes Car Group sold 307,500 vehicles worldwide in the
third quarter of this year (Q3 2005: 310,900).  Third quarter
unit sales by Mercedes- Benz increased slightly to 282,800
vehicles (Q3 2005: 282,100), primarily due to the success of the
new models launched in 2005 and 2006.  At smart, due to the
focus on the smart fortwo, unit sales decreased, as expected, to
24,700 vehicles (Q3 2005: 28,800).  Customer orders have been
received for nearly all smart fortwo cars that will be produced
prior to the model changeover next year.  The divisions's
revenues increased by 8% to US$17.1 billion.

The Mercedes Car Group increased its operating profit by 127% to
US$1.257 billion.  This significant increase in earnings is
primarily due to the efficiency improvements achieved in the
context of the CORE program.

Staff reductions at Mercedes-Benz Passenger Cars in the context
of the CORE program led to charges of US$60 million.  Within the
framework of the voluntary headcount reduction program announced
in September 2005, approximately 9,300 employees had signed
severance agreements or had already left the company.  The
expenses originally planned for the restructuring of smart were
adjusted, resulting in a gain of US$51 million.

The integration of smart into the Mercedes-Benz organization is
progressing according to plan and should be completed by the end
of this year.  The resulting efficiency improvements will
provide a foundation for smart's profitability as of the year
2007.  

Chrysler Group

In a difficult market environment, the Chrysler Group's third
quarter retail and fleet sales totaled 635,300 vehicles.  Total
factory shipments amounted to 504,400 vehicles (Q3 2005:
663,400).

Third quarter revenues amounted to US$12.1 billion (-23%);
measured in Euros, revenues decreased by 26%.

The Chrysler Group posted an operating loss of US$1.477 billion
in the third quarter of 2006, compared with an operating profit
of US$393 million in the same quarter of last year.

The operating loss was primarily the result of a decrease in
worldwide factory unit sales, an unfavorable shift in product
and market mix, and negative net pricing.  These factors reflect
a continuing difficult market environment in the United States
as the Chrysler Group faced increased dealer inventory levels
from the prior quarter, a shift in consumer demand toward
smaller vehicles due to higher fuel prices, and increased
interest rates.

In order to reduce the high levels of dealer inventories,
Chrysler Group reduced shipments to dealers, which necessitated
corresponding production adjustments.  Total factory shipments
of 504,400 vehicles in the third quarter were 158,900 units
lower than in the third quarter of last year.

During the third quarter, the Chrysler Group launched the
compact SUV Jeep(R) Compass and the Jeep(R) Wrangler Unlimited
(4-door).  The Chrysler Aspen, the first SUV from the Chrysler
brand, was also launched in the third quarter.  By the end of
the year, the Chrysler Group will launch three more all-new
vehicles featuring fuel-efficient engines: the Chrysler Sebring,
the Dodge Nitro and the Jeep(R) Patriot.

In July, the Chrysler Group opened its new flexible assembly
plant and supplier park in Toledo, Ohio, where the all-new
Jeep(R) Wrangler models are produced.  This supplier co-location
project represents the latest example of Chrysler Group's
overall manufacturing strategy, enabling various models to be
built on the same assembly line.

Truck Group

Unit sales by the Truck Group of 141,900 vehicles were 2% above
the level of Q3 2005.  Due to the higher unit sales and a better
model mix, revenues increased by 3% to US$10.2 billion.

The Truck Group posted an operating profit of US$705 million (Q3
2005: US$449 million).  This significant increase in earnings
was due to higher unit sales, a high utilization of capacity
combined with strong productivity, and an improved model mix.  
In addition, further efficiency improvements were realized in
the context of the Global Excellence program, which more than
compensated for the higher expenses incurred for new vehicle
projects and the fulfillment of future emission regulations.

Sales by Trucks Europe/Latin America of 37,700 units were
slightly higher than in Q3 2005.  Unit sales of 55,400 vehicles
by Trucks NAFTA under the Freightliner, Western Star and
Sterling brands were 3% higher than in Q3 2005.  Trucks Asia
sold 49,300 units under the Mitsubishi Fuso brand, a 2% increase
compared to the prior-year quarter.

The "Truck Dedication" initiative, which was launched during the
third quarter of this year, aims to focus sales and service
activities even more closely on customers' needs.  The key
elements of the program include more intensive customer
interaction such as additional service stations near logistics
centers and autobahns, as well as service teams with 24-hour
availability.

The Financial Services division continued its positive business
trend in the third quarter, and improved its operating profit to
US$565 million, compared with US$518 million in the third
quarter of last year.  This increase in earnings was assisted by
the higher volume of new business and improved efficiency.  
There were opposing effects from increased risk costs, which had
been extremely low in the prior-year quarter.

New business of US$16 billion was 6% higher than in Q3 2005,
while contract volume of US$144.6 billion was at the prior-year
level.  Adjusted for the effects of currency translation, the
portfolio grew by 4%.

Contract volume of US$104.2 billion in the Americas region
(North and South America) was at the same level as a year
earlier; adjusted for exchange-rate effects, there was an
increase of 4%.  Contract volume in the region Europe, Africa
and Asia/Pacific increased by 4% to US$40.5 billion.  
In Germany, DaimlerChrysler Bank increased its contract volume
by 5% to US$19.7 billion.

The Van, Bus, Other Segment

The Van, Bus, Other segment posted a third quarter operating
profit of US$400 million (Q3 2005: US$481 million), including
expenses of US$91 million for the implementation of the new
management model, mainly for the voluntary headcount reduction
program in administrative areas.  The sale of real estate
properties not required for operating purposes led to a gain of
US$109 million in the third quarter.

Mercedes-Benz Vans posted unit sales of 58,800 vehicles in the
third quarter, which was lower than the very high prior year
number.  The decrease was a result of the launch of the new
Sprinter and the associated production changeover in the
Dusseldorf and Ludwigsfelde plants.

DaimlerChrysler Buses sold 8,600 buses and chassis of the
Mercedes-Benz, Setra and Orion brands (Q3 2005: 9,200).

The contribution to earnings from the European Aeronautic
Defence and Space Company amounted to US$313 million, which was
slightly below the result of US$325 million in the prior-year
quarter.  This was primarily caused by less favorable currency-
hedging rates.  The delays with the delivery of the Airbus A380
did not affect the profit contribution from EADS to
DaimlerChrysler in the third quarter, as the results of EADS are
consolidated by the DaimlerChrysler Group with a three-month
time lag.

                              Outlook

DaimlerChrysler expects a slight decrease in worldwide demand
for automobiles in the fourth quarter and thus slower market
growth than in Q4 2005.  For full-year 2006, the company
anticipates market growth of around 3%.

In the United States, the world's largest market, demand is
likely to decrease slightly (2005: 16.9 million cars and light
trucks).  The Japanese market is also expected to be smaller
than in 2005 (4.7 million passenger cars), while there should be
a moderate increase in demand in Western Europe (2005: 14.5
million passenger cars).  Car sales are expected to increase
significantly in full-year 2006 in nearly all of the major
emerging markets of Asia, South America and Eastern Europe.  The
strong demand for commercial vehicles, especially in the heavy
categories, should continue for the rest of this year, although
with lower growth rates. In view of the ongoing overcapacity in
the automotive industry, DaimlerChrysler assumes that the
situation of intense competitive pressure will continue.

DaimlerChrysler expects unit sales in 2006 to be lower than in
the previous year (4.8 million units).

The Mercedes Car Group anticipates full-year unit sales at least
as high as in 2005.  The division assumes that unit sales by
Mercedes-Benz will exceed last year's figure as a result of the
market success of the brand's new products.  The Mercedes Car
Group will continue to effectively implement the CORE
efficiency-improving program. The division's positive earnings
trend is expected to continue in the fourth quarter.

Due to intense competition and the shift in demand towards
smaller vehicles, the Chrysler Group assumes that unit sales
(factory shipments) in 2006 will be lower than in the prior
year.  Eight new models, many of which are in the growing
segments of passenger cars and small SUVs, are now being
launched or will be launched this year.  The Chrysler Group will
implement further cuts in production volumes during the fourth
quarter in order to reduce dealer inventories and clear the way
for the current product offensive.  DaimlerChrysler expects the
division to post a loss of approximately US$1.3 billion for
full-year 2006.

The Truck Group expects full-year unit sales at least to reach
2005 sales figures.  Due to positive market developments in the
core markets of Europe, the United States and Japan in
connection with upcoming new emission regulations, the ongoing
strong demand for its products and further improvements in
productivity and efficiency, the Truck Group expects to
significantly exceed the prior year's earnings.

The Financial Services division anticipates a continuation of
its stable business development in the remaining months of the
year 2006, despite the higher level of interest rates and
falling growth in consumption in the United States.  Enhanced
process quality and efficiency will help to further improve the
division's competitive position. Operating profit in full-year
2006 should be higher than in the prior year.

The Vans unit expects lower unit sales than in 2005 due to the
Sprinter model change.  Unit sales of buses are likely to exceed
the high level of the prior year.  In connection with the
revised delivery planning for the Airbus A380, EADS revoked its
original earnings forecast at the beginning of October. EADS has
not issued any new earnings guidance since then.

The DaimlerChrysler Group's revenues in full-year 2006 should be
slightly higher than in 2005 (US$190 billion).

On September 15, DaimlerChrysler reduced the Group's operating-
profit target for 2006 to an amount in the magnitude of US$6.3
billion.  Although the company now has to assume that the profit
contribution from EADS will be US$0.3 billion lower than
originally anticipated because of the delayed delivery of the
Airbus A380, DaimlerChrysler is maintaining this earnings target
due to very positive business developments in the divisions
Mercedes Car Group, Truck Group and Financial Services.

This forecast also includes charges for the implementation of
the new management model (US$0.6 billion), the focus on the
smart for two (US$1.3 billion) and the staff reductions at the
Mercedes Car Group (US$0.5 billion).  There are positive effects
from gains on the disposal of the off-highway business (US$0.3
billion), the sale of real estate no longer required for
operating purposes (US$0.1 billion) and the release of
provisions for retirement-pension obligations (US$0.3 billion).

Headquartered in Stuttgart, Germany, DaimlerChrysler AG --
http://www.daimlerchrysler.com/-- engages in the development,  
manufacture, distribution, and sale of various automotive
products, primarily passenger cars, light trucks, and commercial
vehicles worldwide.

It primarily operates in four segments: Mercedes Car Group,
Chrysler Group, Commercial Vehicles, and Financial Services.

The Chrysler Group segment offers cars and minivans, pick-up
trucks, sport utility vehicles, and vans under the Chrysler,
Jeep, and Dodge brand names.  It also sells parts and
accessories under the MOPAR brand.

DaimlerChrysler has operations in Australia, China, Indonesia,
Japan, Korea, Malaysia, and Thailand.

                          *     *     *

DaimlerChrysler lowered its operating profit forecast for full-
year 2006 to be in the magnitude of USUS$6.4 billion based on an
expected full-year operating loss of approximately USUS$1.2
billion for its Chrysler Group.

On Oct. 2, the Troubled Company Reporter - Asia Pacific reported
that DaimlerChrysler revealed its plans for a partnership with
China's Chery Automobile to produce cars for sale in the United
States and other markets.


EMI GROUP: Unearths Accounting Fraud at Brazilian Unit
------------------------------------------------------
EMI Group Plc has discovered a one-off accounting fraud at its
Brazilian recorded music business, The Guardian reports.

The accounting fraud, EMI estimates, resulted in the
overstatement of EMI Music's revenues by around GBP12 million
and operating profits by around GBP9 million.

The scandal, The Times reports, entails false booking of stock
as sold and shipped.  The Brazilian unit, headed by Marcos
Maynard, is understood to have been burden with unexpected
stock, The Times adds.

"As a one-off hit, [the fraud] accounts for five percent of this
year's pre-tax profits and investors might fear there is the
risk of further problems," Richard Hitchcock, an analyst at
Numis Securities, said.

EMI said the impact of the scandal would be be reflected in the
financial results for the six months ended Sept. 30, 2006.

The recording company said it has launched a full investigation
and has suspended the senior management at the Brazilian
business.

                            About EMI

Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent  
music company, operating directly in 50 countries and with
licensees in a further 20.  The group has operations in China.  
The group employs over 6,600 people. Revenues in 2005 were near
EUR2 billion and operating profit generated was over EUR225
million.

At March 31, 2006, EMI Group's consolidated balance sheet
revealed GBP1.817 billion in total assets, GBP2.544 billion in
total liabilities and GBP726.6 million in shareholders' deficit.

Moody's Investors Service downgraded EMI Group plc's senior debt
and guaranteed debt ratings to Ba2 from Ba1.  At the same time
Moody's assigned a Ba2 Corporate Family Rating to EMI.  The
downgrade is based on Moody's expectation that EMI's debt
protection measurements will not improve near-term to a level
commensurate with the Ba1 rating category.  The rating outlook
is now stable.

Despite a visible improvement in operating performance during
the 2005/6 financial year EMI's cash-flow based measures of
indebtedness have remained relatively weak with Adj. RCF/Adj.  

Net Debt at 8.3% while free cash flow (after capital
expenditures and dividends) was negative as it has been in four
out of the last five years.  While Moody's believes that EMI's
second half release schedule will help to compensate for a weak
first half performance (reported revenues -5%) during the
company's 2006/7 financial year, it will be challenging for EMI
to show meaningfully improved revenue and profits for the year
against the backdrop of a still struggling global market for
recorded music.


HOPSON DEVELOPMENT: Keeps BB+ Credit Rtg, Outlook Shifts to Neg.
---------------------------------------------------------------
On October 31, 2006, Standard & Poor's Ratings Services revised
its outlook on Hopson Development Holdings Ltd to negative from
stable.  At the same time, it affirmed the 'BB+' long-term
corporate credit rating on the company.  The 'BB+' issue rating
on the company's US$350 million senior unsecured notes was also
affirmed.
     
"The outlook revision is based on Hopson's increasingly
aggressive land acquisition and slower-than-expected cash
generation," said Standard & Poor's credit analyst Jacphanie
Cheung. It is also based on escalated financial pressure
resulting from expanded debt leverage and increased interest
rates, and uncertainty about regulatory changes affecting the
property market in China.
     
The rating on the company is constrained by above-average risk
facing residential property developers in China, including the
cyclical nature of the market, evolving government regulations
and changing policies, and strong competition.  Other major
risks include the geographical concentration of the company's
activities and a lack of stable recurring income.

These are partly offset by the company's large development
portfolio and its large, low-cost land bank that provides it
with ample leeway to weather a market downturn.
     
The rating could be lowered if the company's financial profile
continues to deteriorate such that its ratio of net debt to
capital consistently stays at above 45%, or if its ratio of
funds from operations to net debt persistently remains below 25%
over a prolonged period, or if the company continues to expand
through further borrowings.

The outlook could be revised to stable if Hopson can execute its
business plan and improve its financial profile such that its
ratio of funds from operations to net debt is maintained at
above 50% and if its EBITDA interest coverage ratio reaches 7x
or greater.


INTELSAT LTD: Names Vicki Warker Sr. Vice President of Marketing
----------------------------------------------------------------
Intelsat Ltd. appointed Vicki Warker as the company's new Senior
Vice President of Marketing.  In this role, Ms. Warker is
responsible for the company's growth initiatives and maximizing
the company's performance in serving the video and network
services customer groups.  In addition, she manages all product
development, product management and rationalization initiatives,
and customer feedback and analysis to ensure Intelsat's products
and services anticipate customer needs and market demand.

"With more than 20 years experience in telecommunications, Vicki
has extensive experience in marketing, product management,
customer service and channel management," said Jim Frownfelter,
COO, Intelsat.  "We expect that Vicki will contribute
significantly to the integration and development efforts
underway at Intelsat, and have great confidence in her ability
to lead our global marketing initiatives."

Prior to joining Intelsat in mid-September, Ms. Warker served as
Vice President of Marketing and Products within the Sprint
Business Solutions organization, where she had responsibility
for product marketing, vertical marketing, pricing and offer
development for business customers.  Prior to Sprint, Vicki held
leadership positions at GE Global eXchange Services and Concert
Communications where she served in a variety of channel
management, product management and marketing capacities.

Ms. Warker holds Master of Science and Bachelor of Science
degrees in Civil Engineering from the University of Maryland.

Intelsat, Ltd. -- http://www.intelsat.com/-- offers telephony,   
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations.  Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.

In Asia, Intelsat has sales offices in China, Japan,
Singapore and Australia.

                           *     *     *

Fitch upgraded the Issuer Default Rating for Intelsat to 'B'
from 'B-' pro forma for its pending acquisition of PanAmSat. The
ratings were also removed from Rating Watch Negative, where they
had originally been placed on Aug. 30, 2005.  Fitch said the
Rating Outlook is Stable.

Moody's Investors Service affirmed the B2 corporate family
rating of Intelsat, Ltd., and downgraded the corporate family
rating of PanAmSat Corporation to B2, given the greater clarity
regarding the final capital structure and the near-term
completion of the PanAmSat acquisition by Intelsat.


PARKSON RETAIL: Moody's Hands Ba1 Corp. Family Rating
-----------------------------------------------------
On November 01, 2006, Moody's Investors Service has assigned a
Ba1 corporate family rating to Parkson Retail Group Ltd and a
provisional (P)Ba1 rating to its proposed issuance of USD200M in
5-year senior notes.  The outlook on the ratings is stable.  The
bond proceeds will be used, through a Credit Linked Note
structure, to finance Parkson's business in China.

This is the first time that Moody's has assigned ratings to
Parkson, and expects to affirm and remove them from their
provisional status upon the issuance of the bond.

"Parkson's ratings reflect the company's well-recognized brand
name, its national scale coverage and its 12-year operating
record in China," says Kaven Tsang, a Moody's analyst, adding,
"favorable domestic economic growth and the rise in personal
wealth has been fuelling the company's significant like-for-like
sales growth."

"Furthermore, Parkson benefits from strong working capital
management practices, a reflection of the strengths of its
concessionaire model and the sound bargaining power it enjoys
over its suppliers," says Tsang.

However, as the company already consistently generates positive
free cash flow, its future credit profile will largely depend
upon the success of its expansion plan - after the bond issuance
- and management's discipline in pacing any inorganic growth.  
Currently, it expects to continue growing rapidly, and will open
and acquire 3-5 stores each year as well as some of its managed
outlets.

In terms of its financials, as of December 2005, Adj.
Debt/EBITDAR was low at 1.3x, but is expected to increase to
around 3x in the next few years in view of its expansion plan.  
After the bond issuance, Parkson will also turn from net cash to
report RCF/Adj. Net Debt of around 30%.

"But while such ratios are comparable to those of some
investment-grade global retail peers, Moody's also notes that
the history of Parkson's current structure is limited, given it
was established after its listing and the completion of a
corporate restructuring, both of which occurred in 2005," says
Tsang.

In terms of liquidity, Parkson does not maintain any standby
credit facilities, but relies on its operating cash flow and
cash balance as liquidity support.  Its substantial cash balance
reflects the favorable and sustainable payment arrangements that
it has established with its concessionaires.

Proceeds from the proposed bond will be used to purchase a
credit linked note (CLN) issued by JP Morgan Chase Bank, N.A.,
London Branch and the service of the CLN is linked to loan
agreements between Parkson's subsidiaries in China and JP Morgan
Chase Bank, Shanghai Branch (the JPM loan).  Moody's, in its
adjusted debt calculation has netted off the CLN investments
against the JPM loan as they essentially mirror each other.

No notching for structural subordination is applied to the bond
rating. This is because secured and subsidiary borrowings, after
netting off the JPM loan, will account for less than 5% of total
assets over the next 3 years.  Furthermore, it is stated in the
terms of the CLN that in a credit event, the amount recovered
under the JPM loan will be fully passed through for redemption
of the CLN, which would be fully applied for the repayment of
the proposed bond.  Bondholder's interest will therefore not be
subordinated to the lender of the JPM loan.

The stable ratings outlook reflects Moody's expectation that
Parkson will remain prudent in its expansion plan and that it is
likely to achieve steady operating and financial performances in
the next few years.

The rating is likely to experience upward pressure if Parkson
demonstrates a steady track record for successful organic and
inorganic growth, while at the same time maintains strong
financial discipline.  The latter includes maintaining Adj.
Debt/EBITDAR under 3x and RCF/Adj. Net Debt above 30%.

On the other hand, the rating may experience a downward trend if
Adj. Debt/EBITDAR rises above 4x, while RCF/Adj.  Net Debt falls
below 20-25% on a sustained basis.

Such an outcome could be a result of:

    -- a weakening in profit margins, due to rising competition
       and/or an erosion in the bargaining power it commands
       over its concessionaires/suppliers; and/or

    -- further debt-funded expansions occur, but which are
       beyond its original plan.  Furthermore, any sign of
       financial support to parent The Lion Group would also
       pressure ratings.

Parkson Retail Group Limited, listed on the Hong Kong Stock
Exchange, is the PRC retailing arm of The Lion Group, a
Malaysian-based conglomerate.  Parkson is one of the largest
national retailers in China, operating 23 self-owned and 15
managed stores in over 26 cities. For the year ended 2005,
revenues were RMB1.2 billion and net income was RMB248 million.


PETROLEOS DE VENEZUELA: Launches Proyecto Etanol
------------------------------------------------
Petroleos de Venezuela, the state-owned oil company of
Venezuela, has launched Proyecto Etanol, its ethanol-
manufacturing unit, Business News Americas reports.

BNamericas relates that Petroleos de Venezuela is looking for
private sector partners for Proyecto Etanol, which is located at
the Puerto La Cruz refinery in eastern Venezuela.

Rafael Ramirez, the president of Petroleos de Venezuela and the
country's energy and oil minister, told BNamericas, "The idea is
to make all the ethanol right here."

According to BNamericas, ethanol production would begin in March
2007.

Minister Ramirez told BNamericas, "We want to open space for
private participation."

BNamericas underscores that Venezuela started substituting
premium-gasoline components MTBE and TAME with ethanol last year
before the US congress banned the oil-based additives in favor
of the specialty alcohol.

Everything had to be changed in Petroleos de Venezuela's
storage, transportation and distribution chain to handle
ethanol, BNamericas says, citing Minister Ramirez.

"The handling of ethanol always has these technical
complications," Minister Ramirez told BNamericas.

Petroleos de Venezuela SA -- http://www.pdv.com/-- is  
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.


PETROLEOS DE VENEZUELA: Awards Study Contract to SNC-Lavalin
------------------------------------------------------------
Petroleos de Venezuela, the state-run oil firm of Venezuela, has
awarded a contract to SNC-Lavalin Group Inc. to conduct a study
for the Extra Heavy Oil Processing Complex in Orinoco Oil Belt,
VHealine reports.

According to VHeadline, the complex is a major component of
Petroleos de Venezuela's long-term plan to boost oil output from
the Orinoco Oil Belt.

VHeadlines notes that the contract includes a study to determine
suitable locations for the complex.  

The report says that once the complex is completed, it will
process 800,000 barrels of extra heavy oil daily that will be
used to produce synthetic crude oils for global crude oil
markets.

SNC-Lavalin has started work on the complex, which it will carry
out with contractors and international process licensors in
Venezuela, VHealine says.

VHeadline underscores that the study is expected to be completed
by the first quarter of next year.

"We are pleased that PDVSA (Petroleos de Venezuela) has awarded
this significant component of their refining business plan to
SNC-Lavalin.  This is a very important project that will promote
socio-economic development in the Orinoco Oil Belt," Jean
Beaudoin, SNC-Lavalin Group Inc.'s executive vice president,
told VHeadline.

                  About SNC-Lavalin Group Inc.

Headquartered in Montreal, Canada, SNC-Lavalin Group Inc. --
http://www.snc-lavalin.com-- is an engineering and construction  
company. The company is engaged in engineering and construction
activities ranging from engineering, procurement, construction
and construction management services to lump sum turnkey
packages.  It also provides operations and maintenance services,
and is involved in the manufacturing of ammunition, as well as
investing in infrastructure concession investments.  It makes
equity investments in infrastructure concessions in various
industry sectors, such as airports, energy, mass transit and
roads.  It operates in nine business segments: Power,
Infrastructure and Environment, Chemicals and Petroleum, Mining
and Metallurgy, Operations and Maintenance, Defence,
Infrastructure Concession Investments, Highway 407 and All
Other.

                 About Petroleos de Venezuela SA

Petroleos de Venezuela SA -- http://www.pdv.com/-- is  
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad.  The company has a commercial office in China.

                        *    *    *

Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.


SEMICONDUCTOR MANUFACTURING: 3rd Qtr Net Loss Reaches US$35 Mil.
----------------------------------------------------------------
Semiconductor Manufacturing International disclosed on Oct. 31,
2006, that its 2006 third-quarter loss widened on lower prices
as customers including Texas Instruments cleared inventory, the
Bloomberg News reports.

According to the company, its net loss widened to
US$35.1 million in the 2006 third quarter compared with the
US$26.1-million net loss it posted in the same period a year
earlier.

Sales for the three months ended September 30, 2006, was
US$368.9 million, up 19% compared with the same period last
year.  However cost of sales rose 7.7% to US$336.2 million from
the second quarter, as wafer shipments and depreciation
increased.

Semiconductor Manufacturing cut its capital spending for this
year to US$1 billion from the planned US$1.1 billion.

Moreover, spending on equipment in the third quarter fell to
US$157.4 million from US$189.2 million a year earlier, and
US$317.3 million in the second quarter.

"We continue to see customers going through a period of
inventory correction which will carry through to the fourth
quarter," The Standard quotes the company's chief executive
officer, Richard Chang, as saying.  "This situation is improving
and depending on the holiday sell-through, it may continue to
improve."

Semiconductor Manufacturing's sales growth eased because it was
"significantly exposed to inventory-laden Broadcom," according
to an October 11, 2006 report by Ivan Goh, an analyst at
Dresdner Kleinwort.

Broadcom -- a Semiconductor Manufacturing client that supplies
chips for electronics including Apple Computer's video iPod --
on October 19, 2006, cut its fourth-quarter sales forecast on
customers' inventory correction, Bloomberg notes.

Semiconductor Manufacturing predicted that the fourth-quarter
gross margin, or the percentage of sales left after paying
production costs, would be 9-11%.

For 2007, capital expenditure will "be less than $700 million,"
Mr. Chang said.

The Standard recounts that the company had earlier made a
forecast that it would spend as much as US$1.1 billion next
year.

The company is evaluating whether it needed to write off
intangible assets related to the licensing of patents from
Taiwan Semiconductor Manufacturing because of a lawsuit between
the two companies, The Standard relates.  The intangible assets
have a book value of US$99.5 million.

Shares of the company fell to a record low after the company
announced its third quarter results.

Semiconductor Manufacturing shares have plunged 66.1% since its
Hong Kong listing March 18, 2004.

Headquartered in Shanghai, China, Semiconductor Manufacturing
International Corporation -- http://www.smics.com/-- is an  
international company and one of the leading semiconductor
foundries in the world, providing integrated circuit (IC)
manufacturing at 0.35um to 90nm and finer line technologies to
customers worldwide.

SMIC had been incurring recurring net losses year-on-year.  

The Troubled Company Reporter - Asia Pacific reported that
SMIC's net loss in the 2005 fourth quarter period reached
US$15.0 million compared with a net loss of US$26.1 million in
the third quarter of the same year.


SENSUS METERING: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
confirmed the B2 Corporate Family Rating for Sensus Metering
Systems Inc., as well as revised the rating on the company's
US$275 Million 8.625% Senior Subordinate Notes due 2013 to B3
from Caa1.  Those debentures were assigned an LGD5 rating
suggesting noteholders will experience a 77% loss in the event
of default.

Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations of the company:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$40 Mil. Sr.
   Sec U.S.
   Revolver due 2009      B2       Ba3      LGD2       23%

   US$200 Mil. Sr.
   Sec U.S. term
   Loan Fac.
   due 2010               B2       Ba3      LGD2       23%

   US$30 Mil. Sr.
   Sec. European
   TL Fac. due 2010       B2       Ba3      LGD2       23%

   US$30 Mil. Sr. Sec.
   European Revolver
   Due 2009               B2       Ba3      LGD2       23%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.   The LGD rating methodology will disaggregate these
two key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Raleigh, North Carolina, Sensus Metering
Systems Inc. -- http://www.sensus.com/-- is a provider of  
metering and Automatic Meter Reading (AMR) solutions for water,
gas, electric, and heat utilities as well as sub-metering
entities worldwide including China, Germany, Brazil and Chile,
among others.


TRW AUTOMOTIVE: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Automotive and Equipment sectors, the
rating agency confirmed its Ba2 Corporate Family Rating for TRW
Automotive.  Additionally, Moody's revised or held its
probability-of-default ratings and assigned loss-given-default
ratings on these loans and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Senior Secured
   Revolving Credit
   Facility               Ba2     Ba1     LGD2        24%

   Senior Secured
   Term Loan A            Ba2     Ba1     LGD2        24%

   Senior Secured
   Term Loan B            Ba2     Ba1     LGD2        24%

   Senior Secured
   Term Loan E            Ba2     Ba1     LGD2        24%

   9.375% Senior Notes    Ba3     Ba3     LGD 5       70%

   10.125% Senior Notes   Ba3     Ba3     LGD 5       70%

   11.75% Subordinated
   Notes                  B1      B1      LGD 6       94%

   11% Subordinated
   Notes                  B1      B1      LGD 6       94%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

TRW Automotive -- http://www.trw.com-- with 2005 sales of  
US$12.6 billion is among the world's ten largest automotive
suppliers and is one of the top financial performers in the
industry. The company supplies more than 40 major vehicle
manufacturers and 250 nameplates and holds leading positions in
all of its primary product categories.

Headquartered in Livonia,  MI , the company has more than 63,000
employees worldwide, and significant presence in Brazil, China,
Germany and Italy.


VOLKSWAGEN AG: Earns EUR1.2 Billion for January-September 2006
--------------------------------------------------------------
Volkswagen AG released its financial report for the nine-month
period ending Sept. 30, 2006.

Highlights  

   -- increase in Volkswagen Group operating profit before
      special items of 62.0% year-on-year to EUR3.0 billion in
      the period January to September 2006, but still below
      medium-term Group target;

   -- Negative one-off effects mainly from restructuring
      expenses and positive one-off factors from the sale of
      equity investments reduced Automotive Division operating
      profit by a net EUR1.7 billion;

   -- at EUR628 million, Automotive Division operating profit
      after special items 43.9% lower than in previous year;
      Financial Services operating profit remains at high prior-
      year level;

   -- gain on sale of Europcar in the second quarter reported as
      profit from discontinued operations in the consolidated
      income statement; cash generated by the sale strengthens
      Automotive Division net liquidity;

   -- special items reduced consolidated pre-tax profit from
      continuing operations by 7.1% to EUR937 million year-on-
      year;

   -- consolidated profit after tax rises 76.6% year-on-year to
      EUR1.2 billion (previous year: EUR0.7 billion), even with
      an above-average tax rate for continuing activities due to
      substantial special items;

   -- ratio of investments in property, plant and equipment
      (capex) to sales revenue in the Automotive Division at
      3.1% (previous year: 4.4%);

   -- at EUR8.2 billion, net liquidity in the Automotive
      Division remains at a high level

   -- collective bargaining agreement reached for the
      restructuring of Volkswagen AG's six traditional plants

   -- new model initiative successfully continued:

   -- deliveries to customers worldwide up by 10.3% year-on-year
      to 4.3 million vehicles; market share in Germany and
      Western Europe increased;

   -- all Group brands record higher year-on-year sales figures;
      Audi, Bentley, Skoda, Lamborghini and Volkswagen
      Commercial Vehicles aiming for full-year delivery records;

   -- new models drive significant growth in deliveries to
      customers in the U.S.A. (+10.2%) and China (+28.7%);

   -- Volkswagen Eos records strong sales figures in cabriolet
      segment;

   -- Audi S3, S6 and S8 models and the TT Coupe successfully
      launched in the market

   -- SEAT presents the Leon Cupra at the London Motor Show;

   -- 12 world premieres of Group models at the Paris Motor Show
      and the IAA Commercial Vehicles

   -- Volkswagen acquires 15.06% stake in MAN Aktiengesellschaft
      as of Oct. 3

"Despite the difficult economic environment, the most important
automotive markets proved to be robust in the first nine months
of 2006 and recorded slight year-on-year growth," the company's
Board of Management said.  "Although oil prices have recently
fallen, we are not expecting any sustained easing of the
situation in the energy and commodity markets.  In combination
with the troubled situation in the Middle East, this will
continue to dampen growth.  We therefore believe that growth in
demand for passenger cars in the U.S.A., Western Europe and
Germany will only be moderate in 2006."

"We will continue our product rollout in the fourth quarter,
thus stabilizing this year's improved market position in Western
Europe and Germany.  The success of the new models in the US
market will be maintained and will bolster our market position
there.  We continue to expect growth in deliveries to customers
in China and South America/South Africa. Consequently we expect
overall year-on-year growth in worldwide delivery figures for
2006."

"We will achieve our goal of cutting material costs by at least
EUR1.0 billion in 2006.  Driven by the higher unit sales and the
success of ForMotionplus, full-year operating profit before
special items will be higher than in 2005.  We expect the
Automotive Division to record a positive net cash flow for the
full year and an improvement in net liquidity compared with Dec.
31, 2005.

Full-text copy of Volkswagen's nine-month results can be viewed
free-of-charge at http://researcharchives.com/t/s?142a

Headquartered in Wolfsburg, Germany, the Volkswagen Group --
http://www.volkswagen.de/-- is one of the world's leading  
automobile manufacturers and the largest carmaker in Europe.

With 47 production plants in eleven European countries and a
further seven countries in the Americas, Asia and Africa,
Volkswagen has more than 343,000 employees producing over 21,500
vehicles or are involved in vehicle-related services on every
working day.

                          *     *     *

Volkswagen has been carrying out measures to cut costs and raise
profits, which could affect up to 30,000 jobs.  The potential
job cuts represent about a third of the carmaker's workforce and
three times higher than initial estimates made by Chief
Executive Bernd Pischetsrieder and Volkswagen brand head,
Wolfgang Bernhard.

In November last year, Volkswagen maintained its 2005 earnings
guidance amid rumors it may lower targets.  The company predicts
a year-on-year improvement in both operating profit after
special items and profit before tax this year.  Rumors flew that
the company would slash full-year earnings forecast due to
higher restructuring costs.  The company said the impact of its
workforce reduction measures, which will be charged as special
items in the fourth quarter, will be lower than last year's.

The company also admitted there were no significant improvements
in the economic environment in the first nine months of 2005,
and the overall situation in the important automotive markets
remained difficult.  It also expected tougher competition in the
Chinese and U.S. markets, and the rise in fuel prices to
influence consumer confidence.


WESCO INT'L: Commences Offering on Convertible Debentures
---------------------------------------------------------
WESCO International, Inc., intends to raise approximately US$250
million through an offering of Convertible Senior Debentures due
2026. In addition, WESCO International may issue up to an
additional US$50 million of Convertible Debentures upon exercise
of an option to be granted to the initial purchasers.

The Convertible Debentures of WESCO International will be
guaranteed on a senior subordinated basis by WESCO Distribution.  
Upon conversion, WESCO International will pay cash and, if
required, shares of WESCO International common stock.

It is expected that the net proceeds from the offering, along
with borrowings under credit facilities, will be used to finance
WESCO Distribution's previously announced acquisition of
Communications Supply Holdings, Inc.  The proposed offering of
Convertible Debentures is not conditional on the completion of
the Communications Supply acquisition.

The offering is being made to qualified institutional buyers
pursuant to Rule 144A under the Securities Act.  None of the
Convertible Debentures (including any shares of common stock
issuable upon conversion thereof) or the guarantee thereof have
been registered under the Securities Act of 1933 or under any
state securities laws and, unless so registered, may not be
offered or sold in the United States or to U.S. persons except
pursuant to an exemption from, or in a transaction not subject
to the registration requirements of the Securities Act and
applicable state securities laws.

Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc., is a publicly traded Fortune 500 holding company, whose
primary operating entity is WESCO Distribution, Inc.  WESCO
Distribution is a distributor of electrical construction
products and electrical and industrial maintenance, repair and
operating supplies, and is the nation's largest provider of
integrated supply services.

Wesco has operations in China, Mexico, and the United Kingdom.

                          *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the wholesale distribution (excluding
healthcare) sector in September 2006, the rating agency
confirmed its Ba3 Corporate Family Rating for Wesco
International Inc.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these two bond
issues:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$150 million
   2.625% Convertible
   Debentures           B2       B1       LGD4     69%

   US$150 million
   7.50% Subordinated
   Notes                B2       B1       LGD4     69%

As reported in the Troubled Company Reporter on June 14, 2006,
Moody's affirmed the B2 ratings on both WESCO's guaranteed
senior convertible debentures due 2025 and WESCO Distribution,
Inc.'s guaranteed senior subordinated notes due 2017, and
WESCO's Ba3 corporate family rating.


WESCO INT'L: Offers US$250-Mln Convertible Senior Debentures
------------------------------------------------------------
WESCO International, Inc. intends to raise around US$250 million
through an offering of Convertible Senior Debentures due 2026.  
In addition, WESCO International may issue up to an additional
US$50 million of Convertible Debentures upon exercise of an
option to be granted to the initial purchasers.

WESCO Distribution will guarantee the Convertible Debentures of
WESCO International on a senior subordinated basis. Upon
conversion, WESCO International will pay cash and, if required,
shares of WESCO International common stock.

It is expected that the net proceeds from the offering, along
with borrowings under credit facilities, will be used to finance
WESCO Distribution's previously announced acquisition of
Communications Supply Holdings, Inc.  The proposed offering of
Convertible Debentures is not conditional on the completion of
the Communications Supply acquisition.

The offering is being made to qualified institutional buyers
pursuant to Rule 144A under the Securities Act.  None of the
Convertible Debentures (including any shares of common stock
issuable upon conversion thereof) or the guarantee thereof have
been registered under the Securities Act of 1933 or under any
state securities laws and, unless so registered, may not be
offered or sold in the United States or to U.S. persons except
pursuant to an exemption from, or in a transaction not subject
to the registration requirements of the Securities Act and
applicable state securities laws.  

Headquartered in Pittsburgh, Pennsylvania, WESCO International,
Inc. (NYSE: WCC) -- http://www.wesco.com/-- is a publicly  
traded Fortune 500 holding company, whose primary operating
entity is WESCO Distribution, Inc.  WESCO Distribution is a
distributor of electrical construction products and electrical
and industrial maintenance, repair and operating supplies, and
is the nation's largest provider of integrated supply services.  
WESCO operates eight fully automated distribution centers and
approximately 370 full-service branches in North America and
selected international markets including the United Kingdom and
Kazakhstan, providing a local presence for area customers and a
global network to serve multi-location businesses and multi-
national corporations.

Wesco has operations in China, Mexico, and the United Kingdom.

                          *     *     *

In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the wholesale distribution (excluding
healthcare) sector in September 2006, the rating agency
confirmed its Ba3 Corporate Family Rating for Wesco
International Inc.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these two bond
issues:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$150 million
   2.625% Convertible
   Debentures           B2       B1       LGD4     69%

   US$150 million
   7.50% Subordinated
   Notes                B2       B1       LGD4     69%


=========
I N D I A
=========

GENERAL MOTORS: Posts US$115-Mil. Net Loss in 2006 Third Quarter
----------------------------------------------------------------
General Motors Corp. reported a net loss of US$115 million for
the third quarter of 2006, compared with a loss of US$1.7
billion for the year-ago quarter.  The net loss for this year's
third quarter included US$644 million in charges for special
items, including goodwill impairment at General Motors
Acceptance Corp. and an increase to the charge associated with
Delphi Corp.'s reorganization.

GM reported 2006 third-quarter adjusted net income, excluding
special items, of US$529 million on revenue of US$48.8 billion.  
These results represent a US$1.6 billion improvement from the
year-ago loss of US$1.1 billion.  GM's global automotive
operations almost fully accounted for the improvement, while
lower GMAC results were more than offset by benefits associated
with certain tax matters.

As a result of progress in ongoing discussions regarding the
bankruptcy filing by Delphi and updated estimates related to
certain benefit guarantees, GM has significantly narrowed the
range of its estimated potential exposure related to this
filing.  The new range is between US$6 and US$7.5 billion pre-
tax, as compared to a previously disclosed range of US$5.5 to
US$12 billion.  GM believes the more likely amount of the
liability is at the lower end of this new range.

Reflecting these updated estimates, GM has also increased the
reserve for its contingent liability for Delphi by US$500
million in the third quarter, bringing the total charges taken
to date to US$6 billion pre-tax.  In addition to these charges,
the final agreement with Delphi may result in GM agreeing to
reimburse Delphi for certain labor expenses to be incurred upon
and after Delphi 's emergence from bankruptcy.  The initial
payment in 2007 is not expected to exceed approximately US$400
million pre-tax, and the ongoing expenses would be of limited
duration and estimated to average less than US$100 million pre-
tax annually.  GM expects these payments to be far exceeded by
anticipated reductions in Delphi material cost premiums.

"Our third quarter results again reflect significant progress in
our fast-paced initiatives to turn around our business and
create a company that is leaner, faster and positioned for long-
term sustainable growth," said Chairman and Chief Executive
Officer Rick Wagoner.  "Our turnaround efforts in North America
and Europe are well underway, and having a large impact on the
bottom line, as evidenced by the US$1.6 billion improvement for
the quarter.  This improvement in North America and Europe,
combined with the strong sales growth and earnings performance
we see in Asia and Latin America, confirm that our plan is on
track.  We have more work to do, and we remain focused on
continuing progress in the quarters to come.

"In addition to the automotive turnaround, our near-term
priorities include the successful resolution of the Delphi
negotiations and closing the GMAC transaction," said Mr.
Wagoner.  "While a number of important issues still remain to be
resolved, we are encouraged by the progress we have made on
Delphi, and remain optimistic that we can achieve a consensual
agreement.  Regarding GMAC, we have completed several key
milestones in the process and continue to work toward a fourth-
quarter close."

                  GM Automotive Operations

Net income from global automotive operations improved by US$1.5
billion year-over-year, posting a loss of US$116 million on an
adjusted basis, excluding special items (reported net loss of
US$62 million).  This improvement is due primarily to
significant improvement in North America, along with continued
strong performance in other regions.

GM's global market share in the third quarter was 13.9%, up
slightly from the second quarter market share of 13.7%, but down
from 14.4% in the third quarter of 2005.  The change in market
share is largely attributable to the company's strategy of
reducing sales of low-margin daily rental vehicles in North
America and Europe.  GM share in the U.S., however, set a
stronger pace in the third quarter at 25.1%, its highest
quarterly result in 2006.

GM North America posted an adjusted net loss of US$367 million
in the third quarter of 2006 (reported net loss of US$374
million), a US$1.3 billion improvement year-over-year, despite a
decrease in production of 96,000 units.  This significant
progress largely reflects improvements in structural costs, as
the company executes the pension, health care and manufacturing
cost reduction initiatives related to its North American
turnaround plan.  The structural cost reductions, which are on
track to total US$6 billion in 2006, far offset the impact of
the lower production for the quarter.

"There continues to be excellent progress in North America, with
over US$3.4 billion of net income improvement in the first nine
months of the year.  We are encouraged by the results, but we
recognize that there is still more work to be done," Mr. Wagoner
said.  "We are on track to meet the structural cost reduction
target of US$9 billion on an average annual running rate basis
by the end of 2006.  Just as important, our aggressive new
product launch program, a result of our increased capital
spending, continues this fall with the introduction of our all-
new Chevrolet Silverado and GMC Sierra pickups and the Saturn
Outlook and GMC Acadia crossovers."

GM Europe posted an adjusted net loss for the quarter of
US$16 million (reported net loss of US$103 million) reflecting
an improvement of US$105 million from the prior year's loss of
US$121 million.  The results reflect continued execution of the
GME restructuring plan, emphasizing both structural cost
reductions and improved quality of sales.

"Our turnaround in Europe is in full gear.  The region continues
to make strides in cost reduction, augmented by pricing
improvements arising from a focused sales and marketing strategy
including lower rental fleet volume," Mr. Wagoner said.  "We are
seeing strong results from our Chevrolet brand, which posted
record sales in Europe for the quarter.  And, the newly launched
Opel/Vauxhall Corsa is on track to exceed its 2006 objectives,
with approximately 130,000 orders already placed in Europe."

GM Asia Pacific posted adjusted net earnings of US$83 million
for the third quarter (reported net earnings of US$231 million),
down from last year's earnings of US$188 million.  The
difference primarily reflects the loss of income from Suzuki
following the reduction in GM's equity interest in Suzuki and
costs associated with launching the important all-new Holden
Commodore and Statesman models in Australia.  Strong sales
performance in the region continued as market share increased to
6.2% from 5.9%, driven primarily by growth in Korea and China.  
GM products continue to gain strong acceptance in the fast-
growing China market, with record third quarter sales of 192,000
units, up 17% over the same period last year.  GM's global sales
of GM Daewoo products exceeded 276,000 units in the third
quarter, up 21% over third quarter 2005.

GM Latin America, Africa and Middle East posted strong adjusted
and reported net earnings of US$184 million for the third
quarter, which reflects an improvement of US$153 million from
the year-ago period.  The results primarily reflect an increase
in volume generated by new product launches throughout the
region.  Market share in the region increased to 17.3% from
16.7% in the year-ago period as a result of strong sales in
Brazil, South Africa, Colombia and the Middle East.

"Our Latin America, Africa and Middle East region posted their
best quarterly financial results in nine years," said Mr.
Wagoner.  "We are seeing strong performance and growth in
virtually every market in the region -- a great example of
leveraging our global product portfolio in key growth markets."

                            GMAC

GMAC Financial Services earned adjusted net income of US$346
million in the third quarter of 2006, as compared to record net
income in the year-ago period of US$654 million.  GMAC's
reported net loss for the quarter totaled US$349 million, which
included non-cash goodwill impairment charges of US$695 million
after-tax related to GMAC's Commercial Finance business.

GMAC's financing operations earned US$136 million for the third
quarter, as compared to US$139 million earned in the year-ago
period.  These results include an expense of US$135 million
related to GMAC's successful third quarter offer to repurchase
US$1 billion worth of certain zero coupon bonds, which will
result in improved earnings in future quarters.  Auto Finance
results otherwise benefited from an increase in net financing
revenue as a result of strong retail financing penetration as
well as lower provisions for credit losses.

ResCap's net income was US$76 million in the third quarter of
2006, down from US$282 million earned in the third quarter of
2005.  The decrease in earnings was attributable to the
challenging U.S. mortgage market that has negatively impacted
margins and credit performance despite year-over-year increases
in production.  Mortgage originations totaled US$51.5 billion
for the quarter, representing a slight increase from US$51.3
billion in the same period in the prior year.

GMAC's Insurance operations generated record quarterly net
income of US$191 million in the third quarter, up US$102 million
from earnings of US$89 million in the year-ago period, primarily
attributable to a combination of favorable loss performance and
higher capital gains.

Excluding the goodwill impairment charge, GMAC's Other segment,
which includes the Commercial Finance business unit and GMAC's
equity investment of approximately 22% in Capmark Financial
Group Inc. (Capmark), incurred an adjusted loss of US$57 million
(reported net loss of US$752 million including the goodwill
impairment charge), compared to US$144 million earned in the
same period last year.  This decline results partially from
GMAC's reduction in ownership interest of Capmark as a result of
the first quarter sale.  In addition, it includes the negative
impact of higher credit provisions at Commercial Finance.

GMAC paid GM a US$500 million dividend in the third quarter,
resulting in 2006 year-to-date cash dividends of US$1.9 billion.

GMAC continues to maintain adequate liquidity, while prudently
reducing its excess levels of cash to more moderate levels with
cash reserve balances at Sept. 30, 2006 of US$14.1 billion,
including US$9.1 billion in cash and cash equivalents and US$5
billion invested in marketable securities.  This compares with
cash balances of approximately US$23 billion at June 30, 2006.

                       Cash and Liquidity

Cash, marketable securities, and readily available assets of the
Voluntary Employees' Beneficiary Association trust totaled
US$20.4 billion at Sept. 30, 2006, down from US$22.9 billion on
June 30, 2006, but up from US$19.2 billion on Sept. 30, 2005.  
GM withdrew US$2 billion from the VEBA trust in the third
quarter to fund health care.

                      About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries, including Mexico, and its vehicles are sold in 200
countries.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 11, 2006,
Standard & Poor's Ratings Services said that its 'B' long-term
and 'B-3' short-term corporate credit ratings on General Motors
Corp. would remain on CreditWatch with negative implications,
where they were placed March 29, 2006.

As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corp. and General Motors of Canada
Limited to B.  The commercial paper ratings of both companies
are also downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility.  The 'RR1' is based on the collateral package and
other protections that are expected to provide full recovery in
the event of a bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors Corp.,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  Moody's said the rating outlook is negative.


GENERAL MOTORS: Receiving 10,000 Tons of Steel from Usinas
----------------------------------------------------------
General Motors' unit in Rio Grande do Sul, Brazil, will be
receiving a total of 10,000 tons of steel a month from Usinas
Siderurgicas de Minas Gerais SA, the latter told Business News
Americas.

Usinas Siderurgicas posted on its Web site that it will expand
by 38% flat steel shipments to General Motors.

                     About Usinas Siderurgicas

Headquartered in Minas Gerais, Brazil, Usiminas is among the
world's 20 largest steel manufacturing complexes, with a
production capacity of approximately 10 million tons of steel.  
Usiminas System companies produces galvanized and non-coated
flat steel products for the automotive, small and large diameter
pipe, civil construction, hydro-electronic, rerolling,
agriculture, and road machinery industries.  Brazil consumes 80%
of its products and the company's largest export markets are the
US and Latin America.

                       About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the  
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries, including Mexico, and its vehicles are sold in 200
countries.

                          *     *     *

Standard & Poor's Ratings Services said that its 'B' long-term
and 'B-3' short-term corporate credit ratings on General Motors
Corp. would remain on CreditWatch with negative implications,
where they were placed March 29, 2006.

Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corp. and General Motors of Canada
Limited to B.  The commercial paper ratings of both companies
are also downgraded to R-3 (low) from R-3.

Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility.  The 'RR1' is based on the collateral package and
other protections that are expected to provide full recovery in
the event of a bankruptcy filing.

Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors Corp.,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  Moody's said the rating outlook is negative.


GENERAL MOTORS: S&P Holds Low-B Ratings on Watch Negative
---------------------------------------------------------
Standard & Poor's Ratings Services said its 'B' long-term and
'B-3' short-term corporate credit ratings on General Motors
Corp. would remain on CreditWatch with negative implications,
where they were placed on March 29.  The CreditWatch update
follows GM's announcement of third-quarter results.
     
Third-quarter earnings improved sharply over those of 2005, with
an automotive net loss of US$116 million, before special items
of negative US$54 million, compared to a loss of US$1.6 billion
in last year's third quarter.
      
"The earnings improvement was driven by expense savings, but did
not translate into greatly improved cash flow," said Standard &
Poor's credit analyst Robert Schulz.  In North America, cost
savings of about US$1.8 billion, most of which were non-cash,
sharply improved GM's third-quarter net loss to US$400 million
from a US$1.7 billion loss in 2005 -- excluding US$7 million of
special items in 2006.  

The North American results were boosted by lower pension and
OPEB expenses of US$1 billion and by US$800 million in benefits
from attrition and capacity reductions, partially offset by
unfavorable mix and volume effects of US$400 million.  Higher
raw material and freight costs wiped out positive contributions
from recently introduced new models, while vehicles from the
previous model year faced a more challenging sales environment.
     
Cash flow from automotive operations is expected to be better
for 2006; for the first nine months, automotive operating cash
flow after cash restructuring costs was a negative
US$5.9 billion versus a negative US$7.8 billion in the first
nine months of 2005.  But in the third quarter of 2006,
cash flow after restructuring expenditures was a negative
US$5 billion versus a negative US$2.5 billion in the third
quarter of 2005.  Looking ahead to the fourth quarter, GM's
vehicle production, a driver of cash flow, is expected to be at
least 13% lower in North America than it was in 2005.
     
GM's ratings are likely to remain on CreditWatch until S&P is
able to ascertain the financial effect on GM of its exposure to
bankrupt former unit Delphi Corp., and until the sale of a 51%
stake in GMAC LLC (formerly General Motors Acceptance Corp.) to
an investor consortium is at or near completion.  

GM narrowed its own estimate of its potential exposure to Delphi
benefits guarantee to US$6 billion to US$7.5 billion and
indicated that payments by GM to reimburse Delphi for certain
labor expenses are not expected to exceed US$400 million in 2007
and would average less than US$100 million thereafter.  These
amounts would appear to be manageable within GM's liquidity
position.


INDIAN OIL: Eyes Stake in Indonesia's Tuban Petrochemical
---------------------------------------------------------
Indian Oil Corporation plans to acquire a stake in Indonesia's
PT Tuban Petrochemical Industries, The Financial Express
reports.

In that regard, Indian Oil will put up a detailed proposal for
approval in its next board meeting, the financial daily says,
citing a statement made by senior Indian Oil officials.

According to the report, Tuban Petro's shareholders include the
Indonesian Government, who holds 70%, and:

   -- PT Pertamina,
   -- Itochu Corporation,
   -- Tuban Petrochemicals Pte Ltd, and
   -- Sojitz Corporation.

"[Indian Oil] is presently fast expanding its presence in
petrochemicals industry and the proposal jives well with IOC's
globalization plan," the report quoted an Indian Oil senior
official as saying.

Tuban Petrochem owns a giant US$3-billion petrochemical complex
that has a combined capacity of 3.6 million tonne per annum of
petrochemicals products.

Indonesia is the largest petroleum market in the ASEAN region,
currently estimated at 50 mtpa of petroleum products, the
financial daily notes.  To pursue upcoming opportunities in the
Indonesian petroleum retail sector, the daily says, Indian Oil
already has in place its board approval for setting up a wholly
owned subsidiary in Indonesia.

                   About Indian Oil Corporation

Headquartered in New Delhi, Indian Oil Corporation Limited --
http://www.iocl.com/-- is engaged in the sale of petroleum     
products.  Other businesses comprise the sale of imported crude
oil, sale of gas, petrochemicals and oil and gas exploration
activities jointly undertaken in the form of unincorporated
joint ventures.  The company's premium fuels include XTRAPREMIUM
petrol and XTRAMILE diesel.  AutoGas is Indian Oil's auto liquid
petroleum gas brand and sells SERVO lubricants in 10 countries.
The aviation fuel supply business caters to the aviation fuel
requirements of the defense services, national carriers,
scheduled private airlines and international airlines.  The
Digboi Refinery of the Assam Oil Division processes crude oil
and its marketing network comprises 366 retail outlets, 399
kerosene/light diesel oil dealerships, and 271 Indane
distributors.  It owns and operates 18 refineries with a
combined refining capacity of 54.20 million tones per annum (1.1
million barrels per day).

                          *     *     *

The Troubled Company Reporter - Asia Pacific reported on
April 21, 2006, that Standard & Poor's Ratings Services revised
the outlook on Indian Oil to positive from stable.  At the same
time, S&P affirmed the 'BB+' issuer credit rating on the
Company.  The outlook revision follows the revision in the
outlook on the sovereign credit ratings on India
(BB+/Positive/B) on April 19, 2006.

Additionally, Moody's Investors Service gave Indian Oil a Ba1
long-term corporate family rating and a Ba2 issuer rating on
March 3, 2005.


JAMMU & KASHMIR: Second Quarter FY2006-07 Net Profit Up 54%
-----------------------------------------------------------
The Jammu & Kashmir Bank Limited recorded a net profit of
INR84.02 crore in the second quarter of 2006-07 (quarter ended
September 30, 2006), an increase of 54% from the INR54.97 crore
net profit in the corresponding quarter of 2005-06.

The bank's operating profit is up by 34% at INR142.88 crore for
Q2 of the current fiscal year, as compared with INR106.79 crore
in Q2 of 2005-06.  The total business turnover increased to
INR34,412 crore in the first two quarters of 2006-07, an
increase of 9.32% over the corresponding period of the previous
fiscal year.  The total deposits stood at INR20,392 crore, up by
4% and advances at INR14,020 crore up by 18% at the end of first
two quarters compared with the corresponding period of the
previous fiscal.

The Net Interest Margins are up 3.50% from 2.68% in quarter
ended March 2006 and 2.93% in quarter ended June 2006 owed to
better liability management and compositional shifts in advances
and investment portfolios.

Taking a step forward towards stabilizing and strengthening of
the bank's business, the provisioning levels for bad and
doubtful debts in the first half of the current fiscal increased
to INR35 crore, an increase of 75% from the corresponding period
of the previous fiscal in order to increase the coverage ratio.  
Having addressed quality issues of assets, the NPA levels now
stand below 1% -- one of the lowest in the industry.  The NPA
Coverage ratio is up at 72.10%, up from 54.63% in Q2 of 2005-06,
aimed at international standards of 80% over the next one-year
period.

The Capital Adequacy Ratio stands at 13.14% comfortable above
the mandatory level of 9%.  The tier I CAR is 12.73% and tier II
is 0.41% for the quarter ended September 30, 2006.  This clearly
stands at a comfortable level as per Basel II requirements and
allows the Bank to meet its strategic and business growth
objectives without any constraints on capital.

Appetite of foreign investors in the bank's stock continues to
grow.  In the light of this, the bank is awaiting RBI's approval
to hike the cap of FII stake from 33% to 40%.  Some major deals
have taken place on the bank's stock over the bourses ranging
buyers from vanilla to hedge funds.

The current quarter also saw the launch of the banks new brand
identity, the design of which will hit the shop floors over the
next three months to give the bank a modern look, vibrancy and
take its services to the new high.

The management has expressed satisfaction at the results Q2,
2006-07, calling it the translation of strategic focus within
J&K into profitability.  Further, if the last six quarters are
taken into consideration, a significant turnaround is seen in
several areas.  The CASA Ratio is up at 41% from 32% in the last
quarter of 2004-05, yield on advances is up from 8.48% to 9.60%
for the same period.  Better balance sheet and capital
management leading to performance have generated value for
stakeholders.  The Book Value has increased from INR343.54/share
to INR401.39/share; annualized EPS has almost doubled from
INR37.84 to INR69.33 for the last six quarters.

                  Financial Results Highlights
                         (in INR Crore)
             
                       Q2 2006-2007   Q2 2005-2006    % Change
                       ------------   ------------    --------
   Net profit                 84.02          54.97       53%
   Net Total Income          233.70         190.27       23%
   Net interest income       193.31         163.56       18%
   Fee based income           40.39          26.71       51%
   Loans outstanding      14,020.00      11,891.00       18%
   Deposits               20,392.00      19,588.00        4%

   Net NPA Ratio              0.75%          1.22%            
   NPA Coverage Ratio        72.10%         54.63%

   Return on Assets
     annualized               1.44%          0.99%
  
   Return on Equity (%)
     annualized              17.65%         12.63%

                   About Jammu & Kashmir Bank

India-based Jammu & Kashmir Bank Limited --
http://www.jammuandkashmirbank.com/-- is a private sector bank  
that provides a range of traditional commercial banking products
and services to corporations and middle market businesses.  The
key commercial banking products and services to corporate
customers include credit products and structured finance, cash
management, trade and commodity finance, and investment banking,
local debt syndication and securitization.  The bank, through
its operations, is focusing on banking, insurance and asset
management.

Fitch Ratings gave Jammu & Kashmir Bank a 'D' individual rating
on June 1, 2005.


JUNIPER NETWORKS: Powers Beijing's First 40G Link
-------------------------------------------------
Juniper Networks, Inc., disclosed that the China Education and
Research Network Information Center has deployed the T-series
core routing platform in its next generation China Education and
Research Network (CERNET2).

CERNET2 is part of the larger nationwide China Next Generation
Internet infrastructure and connects over 20 cities and 200
universities across mainland China.  The network leverages the
T-series platform for unmatched reliability, scalability and
performance required to support one of the world's largest,
purely Internet Protocol version 6 networks, including the first
long-haul 40 Gigabits per second link between major Chinese
cities Beijing and Tianjin.

"CERNET2, and especially its new 40 Gbps link, represents one of
the key segments of the CNGI network and is one of the largest
deployments of IPv6 to date," said Professor Jianping Wu,
director of CERNIC.  "CERNET2 is not dual-stack and since it is
critical that this pure IPv6 network perform with the highest
levels of performance, security and reliability, we chose to
deploy Juniper's T640.  It is the industry's most proven multi-
terabit scale platform, outperforming all other products in
performance and reliability testing, and providing a very rich
IPv6 feature set."

In addition to the 40 Gbps link, CERNET2 pioneers the use of
many other networked applications in China, including remote
education, digital library facilities, grid computing, IPv6
multicasting and IP video at scale.  The network is also China's
test bed for the development of new Internet technologies, such
as the Authentic IPv6 specification which has been submitted by
CERNIC and is currently under review by the Internet Engineering
Task Force.

The Juniper Networks T-series has been shipping since April
2002, and is the industry's most proven core routing platform,
with over 2000 units deployed in customer networks worldwide.
The T-series leverages the feature rich, highly stable and
resilient JUNOS operating system, which has been delivering
production ready IPv6 capabilities for over 3 years. In addition
to extensive fault-tolerance, the T-series has the ability to
leverage Juniper Networks' multi-chassis TX Matrix technology,
allowing service providers to scale to multi-terabit rates
without the risks associated with new and unproven technologies.

"The T-series platform has now been selected for several of the
most important and technologically advanced communications
projects in China, demonstrating the country's demand for secure
and assured networking solutions," said Eric Yu, vice president
of Greater China for Juniper Networks.  "IPv6 is perfectly
aligned with Juniper's vision of creating agile, open and
customizable next-generation networks, and it's exciting to see
organizations like CERNIC take the lead in the deployment of
these technologies."

                     About Juniper Networks

Juniper Networks Inc. -- http://www.juniper.net/-- enables   
secure and assured communications over a single IP network.  The
company's IP platforms enable customers to support many
different services and applications at scale.  The company has
sales offices in India, Australia, China, Hong Kong, Japan,
Korea, Malaysia, New Zealand, Singapore, Taiwan, Thailand and
Vietnam.

                          *     *     *

Standard & Poor's Rating Services placed its ratings on Juniper
Networks, including its 'BB' long-term and 'B-1' short-term
corporate credit ratings, on CreditWatch with negative
implications.


KARNATAKA BANK: Sept. 2006 Quarter Net Profit Up 43%
----------------------------------------------------
For the quarter ended September 30, 2006, Karnataka Bank Ltd
recorded a net profit of INR596.1 million, a 43% increase from
the INR418.1-million net profit reported by the company for the
corresponding quarter last year.

The increase in profit could be attributable mostly to the rise
in revenues for the latest quarter.

Operating income for the September 2006 quarter went up by 23%
to INR2.95 billion, from the September 2005 quarter's
INR2.4 billion.

The Bank also earned more during the September 2006 quarter from
interest on advances -- INR1.9 billion from INR4.4 billion for
the corresponding period last year.

Total income for the third quarter of 2006 was INR3.44 billion,
21% more than the INR2.85 billion in the third quarter last
year.

A full-text copy of Karnataka Bank's unaudited financial results
for the three months and half-year periods ended September 30,
2006, is available for free at
http://ResearchArchives.com/t/s?1449

                      About Karnataka Bank

Headquartered in Mangalore, India, Karnataka Bank Ltd --
http://karnatakabank.com/ktk/Index.jsp-- provides products and  
services for business and personal purposes that include
borrowing facilities, deposits, providing optimum returns on
surplus funds or helping with overseas transactions.  The bank
has two business segments: Treasury and Other Banking
Operations. Treasury Operations mainly comprise of surplus
statutory liquidity ratio and non-SLR investments.  Other
Banking Operations mainly consist of advance portfolio of the
bank and SLR securities to the extent of SLR requirements.  The
bank provides Working Capital Finance, Term Loans and
Infrastructure Finance.  The Business Finance Products offers
both fund-based and non-fund-based products.  The bank has
diversified into the marketing of life insurance products of
MetLife India Insurance Co. Pvt. Ltd.  The Bank has entered into
a memorandum of understanding with Bajaj Allianz General
Insurance Co. Ltd. for distribution of its general insurance
products through its branches.

Fitch Ratings gave Karnataka Bank a support rating of 5.


KOTAK MAHINDRA: Consolidated Profit Up 13% YOY in Q2/FY2006-07
--------------------------------------------------------------
The Board of Directors of Kotak Mahindra Bank took on record the
unaudited consolidated and stand-alone results for the second
quarter of fiscal year 2006-2007, at a board meeting held on
October 19, 2006, in Mumbai.

Consolidated profit after tax for the quarter ended Sept. 30,
2006, was up 13% to INR93.90 crore compared with the figure
reported for the same period in the previous fiscal year.  
Consolidated PAT for the first half of FY 2006-2007 grew by 53%
to INR198.33 crore from INR129.84 crore a year ago.

Consolidated total income for the FY 2006-2007 second quarter
was up 45% to INR903.49 crore as compared with the
INR619.90 crore in the same period last year.

Consolidated advances were up 48% to INR12,067 crore as on
September 30, 2006 (INR8,133 crore as on September 30, 2005)
with retail loans comprising 84% of the portfolio.  Consolidated
NIMs were 5.1% in the current report period.

Announcing the results, Uday Kotak, Executive Vice Chairman &
Managing Director, Kotak Mahindra Bank said, "This quarter has
seen robust growth in lending activities, as we continue to
build out and invest in our branch banking network and the life
insurance business."

Consolidated net NPAs (excluding stressed asset portfolio) as on
September 30, 2006, were 0.20% of consolidated net advances
(0.32% as on September 30, 2005).  Total consolidated net NPAs
were 0.44% as on September 30, 2006.

Consolidated book value per share as on September 30, 2006, was
INR90 (INR52 as on September 30, 2005).

                   Unaudited Stand-Alone Results

Profit after tax of Kotak Mahindra Bank on a stand-alone basis
for the FY 2006-2007 second quarter was up 12% year-on-year to
INR34.80 crore.  FY 2005-2006 second quarter's PAT included an
amount of INR11.15 crore received as royalty by the Bank from
its subsidiary, which had been discontinued from October 4,
2005.  PAT for the FY 2006-2007 second quarter is also after
considering additional provision of INR4.27 crore on standard
assets and a provision of INR2.51 crore on account of liability
for employee benefits in accordance with AS 15.

Net interest income of the Bank for the FY 2006-2007 second
quarter was INR141.28 crore, up 64% from INR86.15 crore in the
same period of the previous fiscal year.

The Bank had 78 full-fledged branches (44 branches as on
September 30, 2005) across 49 towns and cities as on Sept. 30,
2006.  The Bank proposes to have around 110 branches by March
2007 across 65 towns and cities.

As on September 30, 2006, the deposits of the Bank were INR8,194
crore, up 49% as compared with INR5,498 crore as on Sept. 30,
2005.  CASA deposits comprised 21% of total deposits.  The Bank
had around 255,000 deposit accounts as on September 30, 2006
(113,000 deposit accounts as on September 30, 2005).

Advances of the Bank grew by 79% YOY to INR8,386 crore as on
September 30, 2006.

Capital adequacy ratio of the Bank as on September 30, 2006, was
12.38% (11.16% as on September 30, 2005).  Tier 1 ratio was
9.69%.

Business Highlights:

   * Kotak Securities topped the Asiamoney 2006 Brokers Poll as
     the Best Local Broker.  It was also awarded the Best Broker
     in India by Finance Asia for 2006.

   * Kotak Mahindra Asset Management Company was adjudged the
     best Mutual Fund House in NDTV Business Leadership Award
     2006.

   * Total assets managed/ advised by the Group as on Sept. 30,
     2006, were INR21,050 crore (INR13,070 crore as on Sept. 30,
     2005).

   * Kotak Life Insurance total premium income grew 165% YOY to
     INR167.85 crore in Q2FY07.

   * The group employee strength was around 8,800 as on
     September 30, 2006 (around 5,000 employees as on Sept. 30,
     2005).

A full-text copy of the Bank's unaudited financial results for
the quarter and half year ended September 2006 is available for
free at http://ResearchArchives.com/t/s?1441

                      About Kotak Mahindra

Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank.  The Commercial  
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services.  Corporate Centre segment includes
strategic investment and activities.  Car Finance segment offers
car financing.  Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization.  Investment
Banking segment includes advisory and transactional services
providing financial advisory services.  Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits.  Insurance segment offers life
insurance.  Others segment includes forex broking, asset
management services and others.

Fitch Ratings assigned a '5' Support rating to Kotak Mahindra
Bank.


KOTAK MAHINDRA: Acquires 51% Stake in 4 Indirect Subsidiaries
-------------------------------------------------------------
Kotak Mahindra Bank Ltd informed the Bombay Stock Exchange that
that it has acquired 51% of the paid up share capital of four of
its indirect subsidiaries:

   1. Kotak Mahindra (International) Ltd;

   2. Kotak Mahindra (UK) Ltd;

   3. Kotak Mahindra Inc; and

   4. Global Investment Opportunities Fund Ltd.

With the majority stake, the four subsidiaries are converted
from indirect to direct subsidiaries of the Bank.

                      About Kotak Mahindra

Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank.  The Commercial  
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services.  Corporate Centre segment includes
strategic investment and activities.  Car Finance segment offers
car financing.  Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization.  Investment
Banking segment includes advisory and transactional services
providing financial advisory services.  Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits.  Insurance segment offers life
insurance.  Others segment includes forex broking, asset
management services and others.

Fitch Ratings assigned a '5' Support rating to Kotak Mahindra
Bank.


KOTAK MAHINDRA: Grants Stock Options to Employees
-------------------------------------------------
Kotak Mahindra Bank Ltd granted a total number of 29,30,000
options to its employees and the employees of its subsidiary
companies on October 29, 2006, the Bank said in a filing with
the Bombay Stock Exchange.

The grant of options is in accordance with the provisions of the
Securities and Exchange board of India (Employees Stock Option
Scheme and Employees Stock Purchase Scheme), Guidelines, 1999.

The exercise period for the options will be from July 31, 2010,
to December 31, 2010.

                      About Kotak Mahindra

Headquartered in Mumbai, India, Kotak Mahindra Bank Limited --
http://www.kotak.com/-- is a commercial bank.  The Commercial  
Banking segment includes money market, forex market, derivatives
and investments; wholesale borrowings and lendings and services;
retail borrowings covering savings and current accounts and
banking branch network and services, and commercial vehicle
finance, personal loans, home loans, agriculture finance and
other loans/services.  Corporate Centre segment includes
strategic investment and activities.  Car Finance segment offers
car financing.  Broking segment includes brokerage related to
secondary market transactions, services rendered in connection
with primary market subscription mobilization.  Investment
Banking segment includes advisory and transactional services
providing financial advisory services.  Trading/Principal
Investments segment includes dealing in debt, equity, money
market and loans/deposits.  Insurance segment offers life
insurance.  Others segment includes forex broking, asset
management services and others.

Fitch Ratings assigned a '5' Support rating to Kotak Mahindra
Bank.


LAKSHMI VILAS: Reports Business Performance for Q2/FY2006-07
-----------------------------------------------------------
Lakshmi Vilas Bank's net profit for the half-year period ended
September 2006 stood at INR16.40 crore registering a growth of
over 159.90% against INR6.31 crore in the corresponding period
of last financial year.  The net profit earned in the second
quarter ended September 30, 2006, is INR3.83 crore, registering
a growth of over 90% against INR2.01 crore in the corresponding
quarter of the previous year.

The total income of the Bank for the 2nd Quarter ended September
2006 has grown at 24.73% to INR117.33 crore from INR94.06 crore
in the corresponding period of the previous year.  For the half
year ended September 2006 the total income earned is INR224.56
crore against INR174.95 crore in the corresponding period in the
previous half year registering 28.4% growth.

The interest on advances has grown from INR55.38 crore to
INR73.38 crore in the 2nd Quarter of the current year, posting a
growth of 32.50%.  The other income of the Bank up to September
2006 has touched INR24.76 crore as against INR18.02 crore for
the corresponding period of the previous year again registering
a growth of 37.40%.

The Earnings Per Share for the half year ended September 2006
stands at INR8.39 (not annualized).

Deposits level rose from INR3,646.29 crore to INR4,844.11 crore,
registering a 32.85% growth and Credit portfolio expanded from
INR2,325.86 crore to INR3463.15 crore, a rise of 48.90% over the
corresponding previous period.  This growth rate is one of the
highest in the recent history of this eight-decades old Bank.

Headquartered in Tamil Nadu, India, Lakshmi Vilas Bank --
http://www.lvbank.com/index.aspx-- was founded in 1926 mainly  
to cater to the financial needs of varied customer segments.  
The bank was incorporated on November 03, 1926 under the Indian
Companies Act, 1913 and obtained the certificate to commence
business on November 10, 1926.  The Bank obtained its license
from RBI in June 1958, and in August 1958, it became a Scheduled
Commercial Bank.

LVB has been focusing on retail banking, corporate banking and
bankassurance.

                          *     *     *

On October 26, 2006, the Troubled Company Reporter - Asia
Pacific reported that Fitch Ratings gave the Bank a D/E
Individual Rating.


=================
I N D O N E S I A
=================

ANEKA TAMBANG: Nine-Month Net Profit Rises to IDR808.84 Bil. YoY
----------------------------------------------------------------
PT Aneka Tambang Tbk reported these results for the nine-month
period ended September 30, 2006:

                               (in IDR billions)
                               2006          2005
                               ----          ----
     Revenue               3,401.26      2,216.25
     Operating profit      1,316.94        844.44
     Net Profit              808.84        711.09

     Earning per share (rph) 423.99        372.75

PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,   
processes, develops, and explores natural deposits.  The company
operates six mines.  They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and West
Java (gold). The company also operates a precious metal refinery
and a geology unit in Jakarta.

                          *     *     *

As the Troubled Company Reporter - Asia Pacific reported on
December 19, 2005, Moody's Investors Service changed the outlook
for Aneka Tambang's local currency B1 corporate family rating to
positive from stable.  The B2 foreign currency bond rating
remains unchanged with a positive outlook, which is in line with
the positive outlook for Indonesia's sovereign rating.

Standard & Poor's Ratings Services gave Aneka Tambang 'B' long-
term local and foreign issuer credit ratings, effective Aug. 26,
2003.


BANK CENTRAL ASIA: Fitch Affirms All Ratings
--------------------------------------------
Fitch Ratings has affirmed all the ratings of Bank Central Asia  
as follows:

   * Long-term foreign currency Issuer Default rating: 'BB-'

   * Short-term foreign currency rating: 'B'

   * National Long-term rating: 'AA (idn)'

   * Individual: 'C/D' and

   * Support: '4'.

The Outlook for all the ratings is Stable.

BCA's ratings reflect its strong financial position including
generally good asset quality and above average capitalisation,
with its steady earnings profile reflecting its strengths in
transactional banking and deposit taking in Indonesia.  Pre-tax
ROA improved to 3.8% in H106 from 3.4% in 2005 and 3.2% in 2004
partly reflecting the enhancement to interest margin arising
from its ability to garner a high portion of low cost deposits
(demand/savings accounts at c.69% of total deposits) and a
larger exposure to floating-rate earning assets (at c.70% of
total assets).  Rapid loan growth over 2003-2005 exacted a
slight toll on NPL levels which rose to 1.6% of total loans at
end-H106 with Special Mention Loans at a higher 3.6% of total
loans.  However, both ratios were well below peer averages of
9%-10% while reserves cover was much higher than peers at 1.8x
NPLs.  Capital ratios were generally stable over 2004-2005 with
total CAR at 23.8% (Tier 1: 21.6%) and stress testing suggesting
that the risk of capital impairment is low.

                    About Bank Central Asia

Headquartered in Jakarta, Indonesia, PT Bank Central Asia Tbk --
http://www.klikbca.com/-- offers individual and business  
products and services.  The bank's individual services consist
of savings accounts, home loans and car loans, remittance,
collection and safe deposit facilities.  The bank's business
services consist of working capital loans, investment loans and
bank guarantee for small and medium-sized enterprises.  In
addition, it provides export import facilities such as letters
of credit, negotiation and discounting.  The bank's subsidiaries
include PT BCA Finance, BCA Finance Limited and BCA Remittance
Limited.  It has 772 branches in Indonesia, Singapore and New
York, 42,958 EDCs and operates 4,425 ATMs.  The bank serves 6.6
million accounts throughout Indonesia.


BANK NIAGA: Fitch Affirms All Bank Niaga Ratings
------------------------------------------------
Fitch Ratings has affirmed all the ratings of PT Bank Niaga Tbk
as follows:

   * Long-term foreign currency issuer default rating 'BB-'

   * Individual 'D' and

   * Support '4'.

The Outlook for all the ratings is Stable.

Niaga's ratings reflect its reasonably strong profitability,
with a still high level of impaired loans mitigated by its
improved capital position and its parentage in Bumiputra-
Commerce Holdings Berhad, the second-largest banking group in
Malaysia.  While the rapid growth in its loans have led to
concerns about its loan quality, its NPL ratio (5.2%) appears to
have stabilized since end-2005 after the largely one-off impact
last year from the compliance with stricter new regulations on
loan classification.  Its quite high level of special mention
loans (8.7% of loans) and the low reserves cover (0.4x NPLs at
H106) suggest that Niaga's loan quality still requires close
monitoring although its latest 3Q06 financials showed a
reduction in NPL ratio (and higher reserves cover) mainly from
the sale of one large, corporate NPL.  New capital infusion from
a USD100 million subordinated debt and IDR1.3 trillion rights
issue in 2005, caused its capital position to strengthen to
12.5% Tier 1and 17.4% Total CAR (2004: 7.7%, 10.3%) at end-H106.
Stress testing based on harsher write-offs on its NPLs (as at
end-H106) suggest that additional provisions of IDR1 trillion
may still be required, although under more extreme conditions
and recoverable from about two years of earnings.

                        About Bank Niaga

Headquartered in Jakarta, Indonesia, PT Bank Niaga Tbk --
http://www.bankniaga.com-- has a license to operate as a   
commercial bank, a foreign exchange bank and a bank engaged in
activities based on Syariah principles.  The bank's products and
services include: Funding, Consumer Financing, Business
Financing, Credit and Debit Cards, Private Banking, Preferred
Circle, e-Banking, Corporate Trust, Bancassurance and Treasury
Indicator. The bank's subsidiaries consist of: PT Niaga Aset
Manajemen and PT Saseka Gelora Finance. As of January 31, 2006,
the Bank operates 54 domestic branches, 145 domestic supporting
branches, 22 domestic payment points, seven Syariah units and
one overseas branch.


BANK RAKYAT: Fitch Affirms BB- Long-Term For. Currency Rating
-------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of Bank Rakyat
Indonesia as follows:

   * Long-term foreign currency issuer default rating: 'BB-'
   * Short-term foreign currency rating: 'B'
   * National Long-term rating: 'AA+(idn)',
   * Individual: 'C/D' and
   * Support '4'.

The Outlook for all the ratings is Stable.

Bank Rakyat's ratings reflect its strong underlying
profitability and above average asset quality, which stem from
its largely unchallenged franchise in rural microcredits.
Although the higher interest rates in Indonesia since H205 led
to some weakening in loan margin and credit quality at BRI, net
interest margin remained very strong at 10.7% (which is still
among the best in the industry) with ROA at 3.1% in H106.
However, rapid loan growth and the more challenging operating
conditions in Indonesia (which affected some of its SME
customers) caused its NPL ratio to rise to 5.1% in H106 albeit
somewhat mitigated by an adequate reserves cover of 1.4x.
Capital ratios improved (tier 1: 17.2%, total: 20.3%) but were
largely due to the application of reduced regulatory risk
weights for housing, micro/ SME and civil servant loans that
became effective from end-March 2006.

                  About Bank Rakyat Indonesia

Headquartered in Jakarta, Indonesia, PT Bank Rakyat Indonesia
(Persero) Tbk's -- http://www.bri.co.id/-- clients services    
comprise Savings, Credits and Syariah.  In addition, the bank
divides its financial and business services into three groups:
Business Services, consisting of bank guarantees, bank
clearance, automatic teller machines and safe deposit boxes;
Financial Services, consisting of bill payments, CEPEBRI,
INKASO, deposit acceptance, online transactions and transfers,
and Other Services, consisting of tax and fine payments,
donations, Western Union and zakat contributions.  During the
year ended December 31, 2005, the bank had one branch office in
Cayman Islands and two representative offices in New York and
Hong Kong, respectively.


EXCELCOMINDO PRATAMA: Net Profit for 9-Month Period Rises 57%
-------------------------------------------------------------
PT Excelcomindo Pratama Tbk posted a 57% increase in its net
profit for the nine months ended September 30, 2006, boosted by
strong subscriber growth, Reuters reports.

Excelcom, controlled by Telekom Malaysia Bhd recorded a net
profit of IDR712 billion (US$78.14 million) for the first nine
months of 2006, compared to IDR453 billion in the same period
last year.

"The growth was supported by an increase in our subscriber base
by 43 percent to 8.4 million at the end of the third quarter
this year," Reuters cites Hasnul Suhaimi, Excelcom's president
director, as saying in a statement.

According to the report, the company boosted its capital
spending to IDR988 billion over the 2006 nine-month period from
IDR892 billion to support higher subscriber growth.

                       About Excelcomindo

Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk
-- http://www.xl.co.id/-- provides wireless telecommunications  
services, leased lines and corporate services, which include
Internet Service Provider (ISP) and Voice over Internet Protocol
(VoIP) services.  In addition, Excelcomindoprovides voice, data
and other value-added cellular telecommunications services.  Its
product lines include jempol, bebas and xplor.  The company also
provides services that allow its customers to purchase
electronic voucher reloads at all of its centers and outlets,
automated teller machines of various major banks and through its
call centers.  Excelcomindo starter packs and voucher reloads
are also sold by independent retailers.

Excelcomindo is Indonesia's third-largest cellular operator; as
at the first quarter of 2006 the company had 8.2 million
subscribers representing total market share of around 15% but
with cellular revenue market share of approximately 10%.  TM and
its parent Khazanah together hold 73.7% in XL.

                          *     *     *

A May 23, 2006 report of the Troubled Company Reporter - Asia
Pacific stated that Moody's Investors Service has upgraded the
foreign currency senior unsecured bond rating of Excelcomindo
Finance Company B.V. to Ba3 from B1.  The outlook is stable.  At
the same time, Moody's has affirmed PT Excelcomindo Pratama's
Ba2 local currency corporate family rating.  The rating outlook
remains stable.

A subsequent TCR-AP report says that Fitch Ratings, on June 5,
2006, upgraded PT Excelcomindo Pratama's Long-term foreign
currency and local currency Issuer Default Ratings to 'BB-' from
'B+'.  The outlook on the ratings is stable.


FAJAR SURYA: Fitch Assigns Final 'B+' Rating to Secured Notes
-------------------------------------------------------------
Fitch Ratings has assigned a final rating of 'B+' and a Recovery
Rating of 'RR4' to the US$100 million guaranteed secured notes
due 2011 issued by Fajar Paper Finance B.V. and guaranteed by PT
Fajar Surya Wisesa.  The rating action follows the completion of
the notes issue and receipt of documents conforming to
information previously received.

Fajar is among the largest industrial paper manufacturers in
Indonesia with a focused range of products comprising liner
board, corrugated medium paper and coated duplex board.  As at
end-2005, it had a production capacity of 500,000 TPA, and with
the commissioning of PM7 its production capacity was increased
to 700,000 TPA.  Average capacity utilization in the past five
years was 90.0%.  The company's net sales in 2005 amounted to
IDR1.5 trillion (US$153 million), while EBITDA was
IDR245.9 billion (US$25 million).  Fajar's total assets stood at
IDR3.5 trillion (US$351 million) as at end-2005.

Headquartered in Jakarta, Indonesia, PT Fajar Surya Wisesa Tbk
manufactures industrial paper such as container boards,
boxboard, and coated paper for use in the packaging of consumer
and industrial goods.  The company's products are sold locally
and also exported to other Asian countries, Australia, and the
Middle East.


HM SAMPOERNA: Nine-Month Net Profit Rises 24.8%
-----------------------------------------------
PT Handaya Mandala Sampoerna Tbk reported on October 31, 2006, a
24.8% rise in its net profit for the nine-month period ended
September 30, amid healthy sales growth, Reuters says.

Sampoerna, controlled by Philip Morris International and
considered as Indonesia's second largest listed tobacco company,
posted a IDR3.0-trillion (US$329.3 million) net profit in the
nine months ended September 30, 2006, compared with the
IDR2.41 trillion posted in the same period a year ago.

According to the report, Sampoerna, with a market capitalization
of around US$4 billion, saw its sales revenue climb 26% to
IDR22.75 trillion in the January-September period.

Moreover, Sampoerna's operating margins declined slightly to
18.5% from 19.3% due to higher raw material costs and operating
expenses, Reuters notes.

                      About HM Sampoerna

Surabaya, East Java-based PT Hanjaya Mandala Sampoerna Tbk --
http://www.sampoerna.com/-- manufactures hand rolled and  
machine-rolled clove-blended cigarettes.  The company
distributes its products in the domestic and international
market.  Through its subsidiaries, the company also develops
properties.

Standard and Poors gave HM Sampoerna's Long Term Foreign Issuer
Credit a 'BB+' rating effective on November 3, 2005.


NORTEL NETWORKS: Doubles Network Capacity Through Wireless Tech.
----------------------------------------------------------------
Nortel Networks has conducted the industry's first wireless
transmission using Uplink Collaborative MIMO to demonstrate the
ability for operators to serve up to double the number of mobile
broadband subscribers supported in a cell site as current
wireless technologies allow.

For 4G wireless operators, MIMO enables the potential to
substantially increase their subscription revenue with the same
capital investment.  Developed by Nortel Networks, Collaborative
MIMO is part of the WiMAX industry standard and is also being
proposed for 3GPP WCDMA Long-Term Evolution (LTE) and 3GPP2 CDMA
EV-DO Rev-C standards.

John Hoadley, chief technology officer of Mobility and Converged
Core Networks at Nortel Networks, stated, "Uplink Collaborative
MIMO creates a technological disruption that offers
revolutionary improvement in wireless network capacity and
provides a clear path to 4G Mobile Broadband -- of which WiMAX
is the first technology."

"Nortel's latest demonstration confirms that subscriber count
and capacity gains of OFDM-MIMO can be delivered even where
individual devices are not MIMO-enabled with multiple transmit
antennas.  Collaborative MIMO provides the greater uplink
capacity and spectral efficiency needed by operators to deliver
a full mobile broadband experience which will include Internet,
video and VoIP cost-effectively across a wide range of devices,"
Mr. Hoadley said.

The demonstration at Nortel Networks' Advanced Wireless Lab in
Ottawa, used Multiple-Input, Multiple-Output (MIMO), an emerging
wireless antenna technology that will serve as the foundation of
Nortel Networks' 4G Mobile Broadband solutions.

For the demonstration, Nortel Networks used MIMO-enabled
multiple antennas at the cell site and on 4G devices together
with orthogonal frequency division multiplexing transmission
technology.  Previous Nortel Networks and industry research has
shown that a combination of these two technologies offers the
ability to deliver the highest network bandwidth and greatest
spectral efficiency capabilities at the lowest cost.

With OFDM, a single channel within a spectrum band is divided
into multiple, smaller sub-carriers that transmit information
simultaneously without interference.  MIMO allows multiple data
streams to be transmitted at the same time and on the same sub-
carriers through interference-free MIMO spatial channels.  Due
to unique spatial channels that result for each antenna path,
interference between data streams is reduced.  As a result,
OFDM-MIMO substantially increases the bandwidth and spectral
efficiency.

Uplink Collaborative MIMO is a further enhancement that enables
the use of the same channel sub-carriers by multiple devices and
subscribers -- effectively allowing them to share the same sub-
carrier without interference.  Without Collaborative MIMO, the
traffic being carried on a single sub-carrier would not be
maximized across multiple subscribers.  The result would be that
the traffic would be severely limited, preventing users from
having a true broadband experience and limiting VoIP capacity
such that conversations would be unintelligible.

In March 2005, Nortel was the first company to demonstrate OFDM-
MIMO at 37 Mbps peak data rates in 5 MHz of spectrum in the
downlink, with the transfer of a 128 MB file in just 30 seconds.  
Over the last eight years, Nortel Networks has been making
progressive investments in OFDM-MIMO technology and owns dozens
of critical patents in these areas.

                     About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized  
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.  
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Indonesia, Australia, China, Hong Kong,
India, Philippines, Singapore, Taiwan and Thailand.

                          *     *     *

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed US$2billion senior note issue; downgraded the US$200
million 6.875% Senior Notes due 2023 and revised the outlook to
stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes.  The outlook is stable.


NORTEL NETWORKS: Nortel Government Bags Elite Improvement Rating
----------------------------------------------------------------
Nortel Government Solutions, a U.S. company wholly owned by
Nortel Networks, has attained an elite process improvement
rating based on assessment of its performance in managing on-
time delivery of high-quality services and products to U.S.
Federal Government agencies.

The Information Systems Solutions Sector of Nortel Government
Solutions has achieved a Capability Maturity Model Integration
Maturity Level 5 rating from a team of independent evaluators
certified by the Carnegie Mellon Software Engineering Institute.

Nortel Government achieved this rating, based on evaluation of
software and systems engineering processes for mission-critical
systems, in October.  Only seven U.S. companies accomplished
this in the 18-month period ending in June 2006.

Empirical data from Carnegie Mellon indicates that organizations
realize improved schedule, cost and quality performance, higher
customer satisfaction, and higher return on investment as they
achieve higher levels of maturity.

Satya Akula, the president and general manager of Information
Systems Solution Sector at Nortel Government Solutions, stated,
"Key to this achievement was the predictive quality model we
developed from three years of process and product measurement.  
Our ability to monitor and predict performance throughout the
development lifecycle helps us to consistently meet or exceed
customer expectations."

Chuck Saffell, chief executive officer of Nortel Government
Solutions, said, "Our employees have become expert at monitoring
and managing project performance, applying corrective actions
when necessary, and recommending process improvements.  This
rating confirms our commitment to high quality and high
performance, and places Nortel Government Solutions among the
elite U.S. companies serving the Federal Government market."

CMMI is a process improvement approach that provides
organizations with guidelines to establish effective project
management and engineering processes.  CMMI helps set process
improvement goals and priorities and integrate traditionally
separate organizational practices.  It also provides a quality
process framework and a point of reference for achieving best-
in-class performance.

               About Nortel Government Solutions

Based in Fairfax, Virginia, Nortel Government Solutions --
http://www.nortelgov.com/-- is a network-centric integrator,  
providing the services expertise, mission-critical systems and
secure communications that empower government to ensure the
security, livelihood, and well being of its citizens.  The
company is a provider for solutions designed to improve
workforce productivity, reduce operating costs, and streamline
inter-agency communications.

                    About Nortel Networks

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized  
leader in delivering communications capabilities that enhance
the human experience, ignite and power global commerce, and
secure and protect the world's most critical information.  
Serving both service provider and enterprise customers, Nortel
delivers innovative technology solutions encompassing end-to-end
broadband, Voice over IP, multimedia services and applications,
and wireless broadband designed to help people solve the world's
greatest challenges.  Nortel does business in more than 150
countries including Indonesia, Australia, China, Hong Kong,
India, Philippines, Singapore, Taiwan and Thailand.

                        *    *    *

Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks
Corporation, and Nortel Networks Limited at B (low) along with
the preferred share ratings of Nortel Networks Limited at Pfd-5
(low).  All trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

Additionally, Moody's Investors Service affirmed the B3
corporate family rating of Nortel; assigned a B3 rating to the
proposed US$2billion senior note issue; downgraded the US$200
million 6.875% Senior Notes due 2023 and revised the outlook to
stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
US$2 billion notes.  The outlook is stable.


TELKOM INDONESIA: Nine-Month Net Profit Ups by 60% YoY
------------------------------------------------------
PT Telekomunikasi Indonesia Tbk reported a 60% rise in its net
profit for the nine-month period ended September 30, 2006, on
the back of a strong mobile business, Reuters relates.

According to Reuters, Telkom, the biggest company on the Jakarta
exchange with a market capitalization of around US$18 billion,
booked a net profit of IDR9.22 trillion (US$1.01 billion) for
January-September 2006, compared with IDR5.78 trillion in the
same period in 2005.

Telkom, Reuters notes, controls 65% of PT Telekomunikasi
Selular, which is Indonesia's biggest wireless carrier.  It had
around 31 million subscribers by August, more than half the
country's total.

The mobile arm accounts for around 40% of Telkom's sales, which
grew 23% to IDR37.2 trillion in the first nine months, Reuters
says.

Based in Bandung, Indonesia, Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/
-- provides local and long-distance telephone service in
Indonesia.  Known as Telkom, the company also offers fixed-
wireless service, leased lines, and data transport through
affiliates.

                          *     *     *

As reported in the Troubled Company Reporter - Asia Pacific on
May 22, 2006, Moody's Investors Service gave Telekomunikasi
Indonesia a Ba1 local currency corporate family rating.

Standard & Poor's Ratings Services gave the Company foreign and
local currency corporate credit ratings of BB+.

Fitch Ratings has assigned Telkom Indonesia Long-
term foreign and local currency Issuer Default Ratings of 'BB-'.


=========
J A P A N
=========

FTI CONSULTING: Names James Crownover to Class II of the Board
--------------------------------------------------------------
FTI Consulting, Inc.'s Board of Directors appointed James W.
Crownover, an independent director, to the Class II of the
Board.  His term will expire at the company's next annual
meeting in the spring of 2007.

Mr. Crownover had a 30-year career with McKinsey & Company,
Inc. when he retired in 1998.  He headed McKinsey's Southwest
practice for many years, and also co-headed the firm's worldwide
energy practice.  He served as a member of McKinsey's Board of
Directors and also served as director of Allied Waste
Industries, Inc., Chemtura Corporation and Weingarten Realty
Investors.  Mr. Crownover also is chairman of Rice University's
Board of Trustees.

Commenting on Mr. Crownover's appointment, Jack Dunn, president
and chief executive officer, said: "Jim brings to FTI and its
stockholders unquestioned integrity, a wealth of experience and
a tremendous amount of energy and enthusiasm for our mission.  
We will benefit enormously from his addition to our Board."

Baltimore, Maryland-based FTI Conslulting Inc. -
http://www.fticonsulting.com-- is a consulting firm focusing on  
five areas: forensics and litigation,  corporate
finance/restructuring,  technology,  economic consulting, and  
strategic communications.  FTI Consulting has offices in the
United States, the United Kingdom, Australia, China, Hong Kong,
Japan, and Singapore.

The Troubled Company Reporter - Asia Pacific reported that
Standard & Poor's Ratings Services, on September 18, 2006,
assigned its 'B+' rating to FTI Consulting Inc.'s proposed
US$215 million senior notes due 2016.

At the same time, Standard & Poor's affirmed the corporate
credit rating of FTI at 'BB-' and revised the outlook to
positive from stable, based on strong earnings performance and
talent retention.

Moody's Investors Service assigned a Ba2 rating to FTI
Consulting's proposed US$215 million of senior unsecured notes
and lowered the ratings on its US$150 million senior
subordinated convertible notes to B1 from Ba3.  Moody's affirmed
the Ba2 corporate family rating and the Ba2 rating on FTI's
existing senior unsecured notes.  The rating outlook remains
stable.


MAVERICK TUBE: Tenaris Deal Prompts Moody's to Withdraw Ratings
---------------------------------------------------------------
Moody's Investors Service confirmed and will subsequently
withdraw the ratings for Maverick Tube Corp.  Moody's will
subsequently withdraw the Ba3 rated corporate family rating, the
Ba3 LGD assessment, the B1 and the LGD 5 (73%) ratings on the
1.875% convertible senior subordinated notes.  The outlook is
stable.  Moody's does not rate the other notes of Maverick.

The ratings are being confirmed and will subsequently be
withdrawn because Maverick has been fully acquired by Tenaris SA
and consequently, the notes are not expected to remain
outstanding since they are expected to be converted to cash
within the next month and receive a make-whole premium as per
the terms of the indenture.  Moody's also does not currently
rate Tenaris or any of its subsidiaries.

Headquartered Chesterfield, Missouri, Maverick Tube Corp. --
http://www.tenaris.com/-- produces welded tubular steel  
products used in the oil and natural gas industry and for
various electrical applications.  The energy products line
consists of oil country tubular goods, couplings and coiled
tubing which are used in newly drilled oil and natural gas
wells, line pipe used in transporting oil and natural gas and
coiled tubing used in well workover and subsea applications
throughout Japan, the United States, Canada, Argentina, Brazil,
China, Colombia, Italy and Venezuela.


METALDYNE CORP: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Automotive and Equipment sectors, the
rating agency confirmed its Caa1 Corporate Family Rating for
Metaldyne Corporation.  Additionally, Moody's revised or held
its probability-of-default ratings and assigned loss-given-
default ratings on these loans and bond debt obligations:

Issuer: Metaldyne Corporation

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   10% Senior Notes      Caa2      Caa2   LGD 4      69%

   11% Subordinated
   Notes                 Caa3      Caa3   LGD 6      92%

Issuer: Metaldyne Company LLC
                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Senior Secured
   Revolving Credit
   Facility               B3       B2     LGD 2      25%

   Senior Secured
   Synthetic L/C
   Facility               B3       B2     LGD 2      25%

   Senior Secured
   Term Loan D            B3       B2     LGD 2      25%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Plymouth, Mich., Metaldyne Corp --
http://www.metaldyne.com/-- is a leading global designer and   
supplier of metal-based components, assemblies and modules for
transportation related powertrain and chassis applications
including engine, transmission/transfer case, wheel end and
suspension, axle and driveline, and noise and vibration control
products to the motor vehicle industry.

The company has operations in these Asian locations: Yokohama,
Japan; Suzhou, China; Pyeongtaek, Korea; and Jamshedpur, India.


MITSUBIHI MOTORS: First-Half Net Loss Down to JPY16.1 Billion
-------------------------------------------------------------
Mitsubishi Motors has announced first-half results for fiscal
year 2006, ending March 31, 2007, and outlined its forecasts for
the full year, the company said in a press release.

               Fiscal Year 2006 First-Half Results

(1) Performance overview

Mitsubishi Motors posted consolidated net sales of
JPY1.01 trillion for the first half of fiscal year 2006 (April 1
through September 30, 2006), an increase of JPY14.1 billion over
the same period last year (JPY991.3 billion).  This increase was
partially due to exchange rates despite lower sales volume in
Asia and other regions and reduced OEM supply volume in non-
domestic markets.

The company posted an operating loss of JPY5.5 billion, an
improvement of JPY14.3 billion over the same period last year
despite lower global sales volume.  Factors contributing to the
improvement were mainly improved sales and model profitability
mix in Japan and North America, improvement of earnings in the
U.S. financial service operation, and effects of a weaker yen.

Mitsubishi Motors posted an ordinary loss of JPY13.2 billion, a
year-on-year improvement of JPY20.4 billion, and a net loss of
JPY16.1 billion, a year-on-year improvement of JPY47.7 billion
yen. The improvement in net loss resulted from lower asset
impairment charges taken in Japan compared to that taken in
fiscal year 2005, the absence of restructuring charges booked
last year, and extraordinary gains from the dissolution of a
special purpose entity related to monetization of real estate
assets in Japan.

(2) Sales volume

Global retail sales volume in the first half of fiscal year 2006
totaled 599,000 units, a reduction of 60,000 compared to 659,000
in the same period last year.

Despite falling demand in Japan, Mitsubishi Motors sales volume
grew 6,000 vehicles to 114,000.  Seventeen consecutive months of
year-on-year increases (since May 2005) underscore this
achievement, showing steady growth.

In North America, the company's policy to strengthen the
dealers' sales capabilities is gradually bearing fruit.  Volume
in the region grew 3,000 vehicles to 84,000, the first half
fiscal year period of year-on-year growth since the first half
of fiscal 2002 (eight periods).

In Europe, volume in Germany, the UK and other markets fell
slightly year-on-year.  However, in addition to continued robust
sales in Russia, sales volume doubled in the Ukraine, bringing
the total for the region to 142,000 vehicles, 11,000 more than
the same period last year.

In Asia and other regions, markets in Latin America, the Middle
East, and Africa showed increased sales volume.  However, sales
fell in Indonesia on high fuel prices due to elimination of
government subsidies and tighter credit conditions. Sales also
fell in Malaysia, where shipments of production parts and
components to Proton Holdings Berhad were reduced, and in Taiwan
where overall demand fell.  Overall volume on the whole was down
80,000 vehicles to 259,000.

The company's investor presentation summarizes the results as
follows (in 100 million, JPY):

                             FY05 1H     FY06 1H     Change   
                            ---------   ---------   ---------
      Revenue                  9,913      10,054       +141
      Operating Income          -198         -55       +143
      Ordinary Income           -336        -132       +204
      Net Income                -638        -161       +477
      Unit Volume (Retail)       659         599        -60

                        Full-Year Forecast

Despite severe market conditions, the first half of fiscal year
2006 showed year-on-year improvement in net sales and distinct
improvement in earnings.  Although targets for net sales and
unit sales volume did not meet the figures announced at the
beginning of the financial year, losses were reduced in excess
of targets.

While the sales climate is expected to remain difficult in the
coming period, by steadily executing measures in the second
half, the company will strive to achieve net sales and earnings
goals as announced on April 27, 2006.

However, as a result of reviewing the unit sales volume targets
by region, the company has opted to revise its fiscal 2006 sales
volume to 1,322,000 vehicles, a reduction of 86,000 compared to
the April 27th figure.  In Japan, reflecting the fact that unit
sales volume was below forecast in the first half, the company
has opted to revise volume to 281,000 vehicles, a reduction of
21,000 compared to the April 27th figure.  In North America, the
company has revised volume up 7,000 vehicles to 188,000
reflecting the effect of new model launches in the second half.  
Sales in Europe's growth markets are expected to grow as they
did in the first half; the company has revised volume up 9,000
vehicles to 280,000 for the region.  On the other hand, in Asia
and other regions, the company has revised volume downward
81,000 vehicles to 573,000 reflecting the severe environment and
uncertain outlook for markets in the region.

Operational initiatives for the second half of FY2006 (by
region)

(1) Japan

  * Introduce the fully redesigned Pajero and DelicaD:5, as well
    non-turbo versions of "i"
  * Increase dealer traffic through a new advertising campaign
  * Strengthen sales capabilities together with dealers
  * Build a new organizational structure, continue revamping the
    sales operation
  
(2) North America

  * Increase buyer appeal and sales through introduction of the
    new Outlander and Lancer models
  * Reinforce sales capabilities via dealer training
  * Effective advertising focusing on Mitsubishi's 25 years in
    the U.S. market
  * Enhance sales through effective use of financial service
    operations
  * Improve productivity at the Illinois plant
  
(3) Europe

  * Strengthen lineup through consecutive launch of new SUV
    models (new L200, Pajero, Outlander)
  * Expand sales in Russia and the Ukraine
   
(4) Asia and other regions

  * China:  Expand sales of Mitsubishi brand vehicles after the
    recent equity investment in South East (Fujian) Motor Co.,
    Ltd and reinforce the lineup of vehicles exported from Japan
  * Thailand:  Secure stable profitability through expansion of
    Triton/L200 1-ton pickup exports
  * Latin America, the Middle East and Africa:  Sustain momentum
    through introduction of the new Pajero
  * Australia:  Launch 3 new models (Triton, Pajero, Outlander)

                    About Mitsubishi Motors

Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation --
http://www.mitsubishi-motors.co.jp/-- is one of the few      
automobile companies in the world that produces a full line of
automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses.

The company also operates consumer-financing services and
provides this to its customer base.  MMC adopted the "Mitsubishi
Motors Revitalization Plan" on January 28, 2005, as its three-
year business plan covering fiscal 2005 through 2007, after
investor DaimlerChrysler backed out from the company.  The main
objectives of the plan are "Regaining Trust" and "Business
Revitalization."

The company has operations worldwide, covering the United
States, Germany, the United Kingdom, Italy, the Netherlands, the
Philippines, Indonesia, Malaysia, China and Australia.  Its
products are sold in over 170 countries.

As reported by the Troubled Company Reporter - Asia Pacific on
September 29, 2006, Standard & Poor's Ratings Services raised
its long-term  corporate credit and senior unsecured debt
ratings on Mitsubishi Motors Corp. to B- from CCC+, reflecting
progress in the company's revitalization efforts and reduced
downside risks in its earnings and financial profile.  The
outlook on the long-term rating is stable.

As reported by the Troubled Company Reporter - Asia Pacific on
August 4, 2006, Rating & Investment Information Inc. has
upgraded its issuer rating on Mitsubishi Motors Corp. from CCC+
to B with a stable outlook and its commercial paper rating from
c to b, and has removed the rating from its monitor at the same
time.

As reported by the Troubled Company Reporter - Asia Pacific on
July 19, 2006, Japan Credit Rating Agency, Ltd. upgraded the
rating of Mitsubishi Motors Corp.'s senior debts to BB- from B-,
with a stable outlook.  The agency also affirmed the NJ rating
on CP program of the company, while upgrading its rating on the
Euro Medium Term Note Program of MMC and subsidiaries Mitsubishi
Motors Credit of America, Inc. and MMC International Finance
(Netherlands) B.V. to B+ from CCC.


SOFTBANK MOBILE: To Cut Call Fees in November 2006
--------------------------------------------------
Softbank Mobile Corp. plans to cut cellphone call fees to other
carriers from Nov. 10, MarketWatch.Com says, citing the
company's president, Masayoshi Son.

MarketWatch says that Softbank Mobile will lower its cellphone
call fees to other firms to JPY21 per thirty seconds including
tax, which is the same level offered by other firms, such as NTT
DoCoMo and KDDI Corp.

                   About Softbank Corporation

Based in Tokyo, Japan, Softbank Corporation --
https://www.softbank.co.jp/ -- is a leading Japanese
telecommunications and media corporation, with operations in
broadband, fixed-line telecommunications, e-Commerce, Internet,
broadmedia, technology services, finance, media and marketing,
and other businesses.  SoftBank was established on September 3,
1981, and had a market capitalization of approximately US$32.8
billion at February 28, 2006.

SoftBank's corporate profile includes various other companies
such as Japanese broadband company Cable & Wireless IDC, cable
company BB-Serve, and gaming company GungHo Online
Entertainment.  On March 17, 2006, SoftBank announced its
agreement to buy Vodafone Japan, giving it a stake in Japan's
US$78 billion mobile market.

                          *     *     *

According to a Troubled Company Reporter - Asia Pacific report
on April 18, 2006, Standard & Poor's Rating Services agency
affirmed its 'BB-' long-term corporate credit rating on the
Company, with negative implications.

Moody's Investors Service had, on August 9, 2006, upgraded
Softbank Corp.'s stable long-term debt rating and issuer rating
to Ba2 from Ba3, concluding a review initiated on March 17,
2006, when the company announced that it would acquire a 97.7%
stake in mobile phone giant Vodafone Group's Japanese unit,
Vodafone K. K.

                     About Softbank Mobile

Headquartered in Tokyo, Japan, Softbank Mobile Corp. --
http://www.softbankmobile.co.jp/-- offers mobile voice, data,   
and wireless Internet services throughout Japan.  Formerly known
as Vodafone K.K. and operated as Vodafone Japan, the island
country's #3 wireless carrier (behind giants NTT Docomo and
KDDI) has more than 15 million subscribers with more than 85%
also subscribing to Vodafone live!, the company's interactive
mobile service. The company also offers innovative "movie sha-
mail," its popular photo-messaging service using mobile
handsets.  UK-based Vodafone Group sold its 98% stake in
Vodafone K.K. to SOFTBANK in a deal valued at nearly US$16
billion.

The Troubled Company Reporter - Asia Pacific reported on Oct. 4,
2006, that Standard & Poor's Ratings Services said that its
'BB+' long-term ratings on Softbank Mobile Corp., which was
renamed from Vodafone K.K. on Oct. 1, 2006, remain on
CreditWatch with negative implications.


SOLO CUP: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the non-paper Packaging sector, the rating
agency confirmed its B3 Corporate Family Rating for Solo Cup
Company.  

Moody's also confirmed its probability-of-default ratings and
assigned loss-given-default ratings on these three loans and a
bond issue:

                                               Projected
                             POD      LGD      Loss-Given
   Debt Issue                Rating   Rating   Default
   ----------                -------  ------   -------
   US$150 million
   Sr. Sec.
   First Lien Revolver
   maturing
   Feb. 27, 2010             B2        LGD3     34%

   US$637 million
   Sr. Sec.  
   First Lien
   Term Loan B
   due Feb. 27, 2011         B2        LGD3     34%

   US$80 million
   Second Lien
   Term Loan due
   Feb 27, 2012              Caa1      LGD5     70%

   US$325 million
   8.5% Sr. Sub. Notes
   due Feb. 15, 2014         Caa2      LGD5     87%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable foodservice  
products for the consumer and retail, foodservice, packaging,
and international markets.  Solo Cup has broad expertise in
plastic, paper, and foam disposables and creates brand name
products under the Solo, Sweetheart, Fonda, and Hoffmaster
names.  The company was established in 1936 and has a global
presence with facilities in Japan, Canada, Europe, Mexico,
Panama and the United States.


TENNECO INC: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Automotive and Equipment sectors, the
rating agency confirmed its B1 Corporate Family Rating for
Tenneco Inc.  Additionally, Moody's revised or held its
probability-of-default ratings and assigned loss-given-default
ratings on these loans and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Senior Secured
   Revolving Credit    
   Facility               Ba3     Ba1     LGD2      15%

   Senior Secured
   Term Loan B            Ba3     Ba1     LGD2      15%

   Senior Secured
   Revolver B-1           Ba3     Ba1     LGD2      15%

   10.25% Senior Notes    B2      Ba3     LGD3      42%

   8.625% Subordinated
   Notes                  B3      B3      LGD6      92%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in our notching
practices across industries and will improve the transparency
and accuracy of our ratings as our research has shown that
credit losses on bank loans have tended to be lower than those
for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Tenneco, headquartered in Lake Forest, Illinois, is a leading
manufacturer of automotive ride control and emissions control
products and systems for both the worldwide original equipment
market and aftermarket.  Leading brands include Monroe(R),
Rancho(R), and Fric Rot ride control products and Walker(R) and
Gillet emission control products.

The company has global operations in Argentina, Japan, and
Germany, among others, with its European operations
headquartered in Brussels, Belgium.


TIMKEN CO: Earns US$46 Million in Third Quarter of 2006
-------------------------------------------------------
The Timken Company reported sales of US$1.27 billion in the
third quarter of 2006, up slightly from US$1.25 billion for the
same period in 2005.  Strong sales in industrial markets were
largely offset by significant declines in automotive markets.

The company achieved third-quarter net income of US$46 million,
up from US$39 million, in last year's third quarter.

Special items in the third quarter of 2006 included
manufacturing restructuring and rationalization charges that
totaled US$7.1 million of pretax expense, compared to US$28.3
million in the same period a year ago.

"Our industrial and steel businesses performed well in the third
quarter with industrial markets continuing to drive strong
demand for our products," James W. Griffith, president and chief
executive officer, said.  "Dramatic volume reductions are posing
significant challenges across the North American automotive
market.  We are taking actions to adapt to the decline in demand
and will continue to pursue structural changes to bring our
Automotive business to profitability."

For the first nine months of 2006, sales were US$4 billion, an
increase of 3% from US$3.8 billion for the same period in the
prior year.  Net income for the first nine months of 2006 was
US$187 million, versus US$165 million for the comparable nine-
month period in 2005.

Special items in the first nine months of 2006 totaled US$32.9
million of pretax expense, compared to US$33.1 million in the
same period a year ago, and included manufacturing,
restructuring and rationalization charges and the impact of
asset dispositions.

Total debt was US$752.8 million as of Sept. 30, 2006, or 30.7%
of capital.  Net debt at Sept. 30, 2006, was US$698.7 million,
or 29.2% of capital, compared to US$655.6 million, or 30.5% of
capital, as of Dec. 31, 2005.

The Industrial Group had third-quarter sales of US$501.8
million, up 7% from US$468.2 million for the same period last
year.  The company continued to benefit from strong demand
across its broad industrial segments, led by increases in the
aerospace, industrial distribution and heavy industry segments.

The company continues to make investments in Asia and key global
industrial markets, including construction of the company's
fifth manufacturing facility in China, opening of a global
aerospace facility in Arizona and introduction of a new line of
large-bore seals.

For the first nine months of 2006, Industrial Group sales were
US$1.5 billion, up 7 percent over the same period a year ago.
EBIT for the first nine months of 2006 was US$157.6 million,
compared to EBIT of US$158.1 million over the prior-year period.
Automotive Group Results

The Automotive Group's third-quarter sales of US$363.6 million
were 11% below the same period a year ago.  The decline in sales
was the result of significant reductions in vehicle production
by automakers headquartered in North America.

The Automotive Group recorded a third-quarter loss of
US$26.3 million, compared to a loss of US$6 million for the same
period a year ago.  In response to the recent drop in demand,
the company announced in September 2006 the reduction of 700
positions from its Automotive Group, which is expected to result
in savings of approximately US$35 million, to be fully realized
by the middle of 2007, at a cost of approximately US$25 million.  
The program is in addition to the automotive restructuring plan
disclosed in July 2005, which has targeted savings of
approximately US$40 million by the end of 2007.  The company
anticipates taking additional actions to structurally improve
the performance of the business.

For the first nine months of 2006, Automotive Group sales of
US$1.2 billion were 3% below the same period last year.  The
group recorded a loss of US$31.4 million for the first nine
months of 2006, compared to a loss of US$12.4 million in the
first nine months of 2005.

Steel Group third-quarter sales were US$442.6 million, a 3%
increase from US$427.9 million in the same period a year ago.

During the quarter, the Steel Group disclosed an investment in a
new induction heat-treat line that will increase the company's
capacity and ability to provide differentiated products to more
customers in important global energy markets.  In addition, the
group recently disclosed its intention to exit its European
seamless steel tube manufacturing operation as part of its
strategy to strengthen its business portfolio.

For the first nine months of 2006, Steel Group sales were
US$1.4 billion, a 3% increase over the first nine months of last
year.
  
Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered    
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries.  The company has
operations in Japan, Argentina, Australia, Belgium, Brazil,
Canada, China, Czech Republic, England, France, Germany, India,
Italy, Korea, Singapore, South America, Spain, Taiwan, Turkey,
United States, and Venezuela and employs 27,000 employees.

                          *     *     *

The company's 7.16% Medium-Term Notes, Series A due 2027 carry
Moody's Investors Service's Ba1 rating.


TIMKEN CO: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
confirmed the Ba1 Corporate Family Rating for The Timken
Company, as well as the Ba1 rating on the company's US$300
Million Unsecured Medium Term Notes Series A due 2028.  Those
debentures were assigned an LGD3 rating suggesting noteholders
will experience a 46% loss in the event of default.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.   The LGD rating methodology will disaggregate these
two key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of its ratings as Moody's research has
shown that credit losses on bank loans have tended to be lower
than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) --
http://www.timken.com/-- is a manufacturer of highly engineered    
bearings and alloy steels.  It also provides related components
and services such as bearing refurbishment for the aerospace,
medical, industrial and railroad industries.  The company has
operations in Japan, Argentina, Australia, Belgium, Brazil,
Canada, China, Czech Republic, England, France, Germany, India,
Italy, Korea, Singapore, South America, Spain, Taiwan, Turkey,
United States, and Venezuela and employs 27,000 employees.


XEROX CORP: Moody's Confirms Ba1 Corporate Family Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Technology Hardware sector, the rating
agency confirmed its Ba1 Corporate Family Rating for Xerox Corp.

Moody's revised its probability-of-default ratings and assigned
loss-given-default ratings to these securities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default

   US$700 million
   Sr. Notes
   due 2016             Ba2      Ba1      LGD3     48%

   US$620 million
   9.75% Sr. Notes
   due 2009             Ba2      Ba1      LGD3     48%

   US$688 million
   7.125% Sr. Notes
   due 2010             Ba2      Ba1      LGD3     48%

   US$542 million
   7.625% Sr. Notes
   due 2013             Ba2      Ba1      LGD3     48%

   US$50 million
   6.875% Sr. Notes
   due 2011             Ba2      Ba1      LGD3     48%

   US$1.25 billion
   Unsec.
   Revolving
   Credit Facility      Ba2      Ba1      LGD3     48%

   US$752 million
   Sr. Notes
   due 2011             Ba2      Ba1      LGD3     48%

   US$251 million
   Notes due 2016       Ba2      Ba1      LGD3     48%

   US$255 million
   Yen Notes
   due 2007             Ba2      Ba1      LGD3     48%

   US$75 million
   Notes due 2012       Ba2      Ba1      LGD3     48%

   US$60 million
   Notes due 2013       Ba2      Ba1      LGD3     48%

   US$50 million
   Notes due 2014       Ba2      Ba1      LGD3     48%

   US$25 million
   Notes dye 2018       Ba2      Ba1      LGD3     48%

   US$27 million
   Notes due 2008       Ba2      Ba1      LGD3     48%

   US$260 million
   Euro Senior
   Notes due 2009       Ba2      Ba1      LGD3     48%

   Medium Term Notes
   US$166 million       Ba2      Ba1      LGD3     48%

   Trust Preferred      Ba3      Ba2      LGD6     94%

   Shelf-Sr. Unsec.    (P)Ba2   (P)Ba1    LGD3     48%

   Shelf-Subordinated  (P)Ba3   (P)Ba2    LGD6     94%

   Shelf-Preferred     (P)B1    (P)Ba2    LGD6     97%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of its ratings as research has shown
that credit losses on bank loans have tended to be lower than
those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Stamford, Connecticut, Xerox Corp. --
http://www.xerox.com/-- develops, manufactures, markets,  
services and finances a range of document equipment, software,
solutions and services.  Xerox operates in over 160 countries
worldwide and distributes products in the Western Hemisphere
through divisions, wholly owned subsidiaries and third-party
distributors.  The company has operations in Japan, Italy and
Nicaragua.


* Moody's: Paper Makers Face Challenges But Finances Suit Rating
----------------------------------------------------------------
While the potential has somewhat increased for a rise in paper
manufacturing output in Japan, and key input prices continue to
pressure industry profitability, Moody's Investors Service's
rated Japanese pulp and paper manufacturer -- Oji Paper Co.,
Ltd. (Oji Paper) -- should be able to essentially maintain its
financial metrics at levels appropriate to its credit rating
over the near term, says the rating agency in a new report.

"Oji Paper's attempt to merge with Hokuetsu Paper failed in
early September, while many major paper manufacturers have
announced plans to build new mills in the next few years,"
comments Motoki Yanase, Moody's Analyst and author of the
report, "Japanese Pulp & Paper."  "These factors have increased
the risk for an output rise and, consequently, pressure on
domestic prices of printing papers.  However, rapid price falls
may be hindered by the limited number of players in most paper
segments due to past consolidation and their need to maintain
decent price levels."

In addition, the report notes that paperboard prices in Japan
have generally held up due to there being little threat from
imported products and to the recycling-oriented nature of the
products.  Although paperboard generally has lower profitability
than paper due to its price levels, Moody's believes its
stability will support Japanese pulp and paper companies' future
cash flow.

"On the cost side, however, prices of key inputs continue to
pressure manufacturers' profitability," describes Moody's
Yanase.  "Even though companies' continued efforts on cost cuts
will help absorb part of the cost push, margins will still
experience significant pressure."

Overall, considering the industry companies' attempts to raise
prices in 2006 and some support from cost-cutting efforts,
Moody's anticipates that Oji Paper will be able to prevent
significant deterioration in financial metrics in the near term.
Its cash flow will also be supported by its relatively large
paperboard segment and real estate division.

Moody's notes, however, that it will assess the rating
implications if the prospect increases that prolonged weakening
in paper prices and added capital expenditure will tighten Oji
Paper's future cash flow and eventually undermine its financial
profile.  In this context, Moody's will keep in mind the
company's increased capital requirement for its new investments
in Japan and China.


=========
K O R E A
=========

* Korea Exchange to Consolidate System with Tokyo Exchange
----------------------------------------------------------
Korea's stock market operator, Korea Exchange, will seek system
integration with its Japanese counterpart, Korea.net relates,
citing a statement made by KRX Chairman Lee Young-tak.

The computer system integration, which is the most important
part of consolidation, will promote cross-stock listings between
the two countries, the Korean government Web site says.  The
system integration is expected to cut costs associated with the
maintenance of the listings on the Tokyo exchange, Mr. Lee told
Korea.net.

KRX is also eyeing consolidation deals with other Asian
exchanges.  KRX, however, has put priority on listing its own
shares on the main Korea Stock Exchange.

"We have recently launched a process to select a lead manager
for the listing of our shares, Mr. Lee said.  "I expect the
stock offering will take place around April next year."

According to Mr. Lee, about 10 Chinese firms are working on
listing their shares on the Korean stock market. "It is not
certain how many Chinese firms will list their shares, but some
information technology companies are showing strong interest,"
he added.


=====================
N E W   Z E A L A N D
=====================

AIR NEW ZEALAND: Introduces J. Harrison as GM-Australia
-------------------------------------------------------
Air New Zealand Limited introduced John Harrison as its new
General Manager - Australia, etravelblackboard.com relates.

Mr. Harrison is the airlines' former market planner based in New
Zealand.  He was also formerly connected with other carriers,
American Airlines, Northwest Airlines, and KLM Royal Dutch
Airlines.

"The Board has growth strategy in place for Air New Zealand,"
Mr. Harrison says, adding that he will work closely with trade
partners with agency sales being "very important."

                      About Air New Zealand

Based in Auckland, New Zealand, Air New Zealand is the country's
flag air carrier, with domestic and international passenger and
freight operations, and an aviation engineering business.

As reported in the Troubled Company Reporter - Asia Pacific on
September 2, 2005, Moody's Investors Service affirmed its Ba1
issuer rating on Air New Zealand Limited after the airline
announced its annual results for FY2005.  Air NZ's rating
reflected its dominant position in the New Zealand domestic
market, with around 80% market share, and the profitability of
domestic operations following their restructuring to a low-cost
network model.  Also supporting Air NZ's rating was its solid
liquidity position, with cash balances of NZ$1.071 billion held
as at June 30, 2005.

However, while Air NZ has a solid position in New Zealand and
other parts of the international network are performing well,
intense competition on trans-Tasman routes has resulted in it
being unprofitable for Air NZ.  International competition also
limits Air NZ's ability to expand.  Its management is also aware
of the airline's vulnerability to external shocks and the
actions of key competitors.


=====================
P H I L I P P I N E S
=====================

METROPOLITAN BANK: 3rd-Quarter Net Profit Up 37%, Reuters Says
--------------------------------------------------------------
Metropolitan Bank and Trust Co. posted a net profit increase of
37% for the third-quarter ended September 30, 2006, based on
Reuters' calculations, as costs fell by nearly a third and
offset higher bad debt provisions and a fall in net interest
income.

According to Reuters Estimates, Metrobank is expected to post
full-year ending December 31, 2006, net income of
PHP5.08 billion versus PHP4.3 billion in 2005.

Reuters states that Metrobank's third quarter net profit of
PHP1.3 billion (US$26 million) was fuelled by the drop in costs,
which overshadowed a jump in bad debt provisions to PHP2.46
billion from PHP956 million a year ago, and a 20% fall in net
interest income to PHP3.5 billion.

Metrobank posted net income of PHP950 million a year earlier but
did not provide comparative figures, Reuters reports, noting
that Metrobank did not say whether its 2005 results had been
revised.

Fee income was flat at PHP2.8 billion, Reuters reveals.

Metrobank is also selling non-performing loans and assets worth
a total of about PHP12.5 billion before the year ends to free up
its resources for more lending, Reuters adds.

                        About Metrobank

Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the  
Metrobank Group.  Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
internet banking, mobile banking, and phone banking, as well as
its huge ATM network.  Metrobank is also the leading provider of
trade finance in the country, and its overseas branch network
has enabled it to service the fund remittances of Filipino
overseas contract workers.

The Bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.

                          *     *     *

On March 3, 2006, the Troubled Company Reporter - Asia Pacific
reported that Standard and Poor's Rating Service assigned a CCC+
rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.

Moreover, Moody's gave Metrobank a Ba3 Foreign Long-Term Bank
Deposits and Subordinated Debt Rating effective May 25, 2006.

On September 21, 2006, the TCR-AP reported that Fitch Ratings
upgraded Metrobank's Individual rating to 'D' from 'D/E'.  All
the bank's other ratings were affirmed:

   * Long-term Issuer Default rating 'BB-' -- with a stable
     Outlook,

   * Short-term rating 'B,'

   * Support rating '3.


PHILIPPINE NATIONAL BANK: To Hold Joint Auctions with Allied
------------------------------------------------------------
The Philippine National Bank and Allied Bank senior executives
recently inked a Memorandum of Agreement to hold joint public
property auctions nationwide.  The project will help the two
banks realize benefits as members of the Lucio Tan Group of
Companies.

                      About Allied Bank

Established in 1963, Allied Banking Corporation was majority
acquired by the Lucio Tan Group in 1977.  The Lucio Tan Group is
a diversified conglomerate and is one of the largest corporates
in the Philippines, which also majority owns Philippine National
Bank.  At end-2005, ABC had a network of 317 branches.

                About Philippine National Bank

Philippine National Bank -- http://www.pnb.com.ph/-- is the  
Philippine's first universal bank established on July 22, 1916.  
The Bank's core business consists of lending and deposit-taking
activities from corporate, middle market and retail customers,
as well as various government units.  Its other principal
activities include bill discounting, fund transfers, remittance
servicing, foreign exchange dealings, retail banking, trust
services, treasury operations and trade finance.  Through its
subsidiaries, PNB engages in a number of diversified financial
and related businesses such as international merchant banking,
investment banking, life/non-life insurance, leasing, financing
of small-and-medium-sized industries, and financial advisory
services.  It introduced innovations such as the bank on wheels,
computerized banking, ATM banking, mobile money changing and
domestic travelers' checks.

                          *     *     *

Standard and Poor's Ratings Services has given PNB 'B' Short-
Term Foreign Issuer Credit and Short-Term Local Issuer Credit
Rating, as well as 'B-' Long-Term Foreign Issuer Credit and
Long-Term Local Issuer Credit Ratings effective as of April 26,
2006.

Moody's Investors Service has assigned a Ba3 rating to PNB's
proposed local currency subordinated notes -- Series A and
Series B.

On October 31 2006, Fitch Ratings affirmed PNB's Individual
rating at 'E' and Support rating '3' after a review of the bank.


RIZAL COMMERCIAL BANKING: Fitch Sets Hybrid Issue Rating at B-
--------------------------------------------------------------
On October 31, 2006, Fitch Ratings has assigned a final rating
of 'B-' to Rizal Commercial Banking Corporation's hybrid issue
of up to US$100 million.  The rating action follows the receipt
of final documents conforming to information previously
received.

Established in 1960 and listed on the Philippine stock exchange
in 1986, RCBC maintains a network of 294 branches and 252 ATMs.
Its majority shareholder is the Yuchengco group (controlled by
the Yuchengco family), a Philippine conglomerate with an
extensive portfolio of other interests.


=================
S I N G A P O R E
=================

ADVANCED MICRO: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. technology semiconductor and
distributor sector, the rating agency affirmed its Ba3 corporate
family rating on Advanced Micro Devices, Inc.

Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$600 Mil. senior
   unsecured notes         B1      Ba3     LGD4        59%

   Shelf - Sr.
   Unsecured Notes         B1      Ba3     LGD4        59%

   Shelf - Subor.          B2       B2     LGD6        97%

   Shelf - Preferred       B3       B2     LGD6        97%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's
research has shown that credit losses on bank loans have tended
to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

                          About Advanced Micro

Headquartered in Sunnyvale, California, Advanced Micro Devices,
Inc., -- http://www.amd.com/-- designs and manufactures  
microprocessors and other semiconductor products.

The company has a facility in Singapore.  It has sales offices
in Belgium, France, Germany, the United Kingdom, Mexico and
Brazil.


AKER KVAERNER: Earns NOK414 Million for Third Quarter 2006
----------------------------------------------------------
Aker Kvaerner ASA released its pro-forma operating results for
the third quarter of 2006.

Aker Kvaerner posted NOK414 million in net profit for the third
quarter of 2006, an increase of 70% compared with same period in
2005.  Consolidated operating revenues in the third quarter
totaled NOK13.4 billion, an increase of 33% compared with the
same quarter last year.  This reflects strong markets and high
activity in all reporting segments.

EBITDA for the third quarter was NOK822 million, an increase of
53% from NOK539 million in the third quarter 2005.  The
quarterly EBITDA margin was 6.1% compared to 5.4% in the third
quarter last year.  Year-to-date EBITDA of NOK2.265 billion
increased by 67% from NOK1.356 billion in the corresponding
period last year.  Year-to-date EBITDA margin is 5.8%.

The all-time high third-quarter order intake was NOK24.6
billion, which brings the order backlog to a solid NOK68.3
billion.

Cash flow from operating activities was NOK587 million in the
third quarter, reflecting a NOK196 million decrease in net
current operating assets.  Cash and bank deposits at the end of
September amounted to NOK6.8 billion.  The liquidity buffer,
including undrawn credit facilities of NOK2.2 billion, was
a comfortable NOK9 billion.

Aker Kv'rner is announcing an overall refinancing plan.  A group
of Nordic and international banks have underwritten the total
financing requirement of EUR850 million.  The new financing is
expected to be in place as of Dec. 1, 2006.  Through this
refinancing, the gross debt will be reduced by approximately
NOK1 billion.  The refinancing will increase the financial
flexibility of the company substantially.  Going forward,
interest costs will be reduced by approximately NOK180 million
per year, and there will be no dividend restrictions.

With the high capacity utilization in the industry, the focus
for Aker Kvaerner will continue to be selecting and executing
the right projects successfully.  The market is still expected
to be strong with attractive opportunities.

Metso's application for the clearance of its acquisition of Aker
Kvaerner's Pulping and Power businesses is currently subject to
phase II review under the EU merger regulation. Aker Kvaerner
expects closing to take place in the fourth quarter.

                       About Aker Kvaerner

Headquartered in Lysaker, Norway, Aker Kvaerner ASA --
http://www.akerkvaerner.com/-- through its subsidiaries and  
affiliates, provides engineering and construction services,
technology products and integrated solutions.

The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C.  The group operates in
Singapore, Austria, Azerbaijan, Belgium, Denmark, Finland,
France, Germany, Netherlands, Poland, Russia, Spain, Sweden,
United Kingdom, Australia, China, India, Indonesia, Japan,
Malaysia, South Korea, Thailand, Brazil, Chile, Canada and the
United States.

                          *     *     *

Moody's Investors Service upgraded the of Aker Kvaerner Oil &
Gas Group and Aker Kvaerner AS, primarily to reflect the
sustainable strong recovery in profitability and cash flow
generation of the ring- fenced oil and gas group over the past
two years, coupled with the clear reduction in senior debt,
repaid from internally generated funds.

Ratings affected:

Aker Kvaerner Oil & Gas Group AS

   -- Corporate family rating: upgraded to Ba1 from Ba3

Aker Kvaerner AS

   -- Rating of the second priority lien notes due 2011:
      upgraded to Ba1 from Ba3.

Moody's said the outlook on all ratings is stable.


AKER KVAERNER: Inks US$80-Mln Riser Deal with Queiroz Galvao
------------------------------------------------------------
Aker Kvaerner ASA has been awarded contracts to supply three
subsea drilling riser systems, featuring Aker Kvaerner's
innovative CLIP riser system, to Brazilian drilling company
Queiroz Galvao Oleo e Gas S.A.

The contracts have a value of around US$80 million.

The scope of work comprises three drilling riser systems,
including tools and flotation, designed for use in 700 meters,
2000 meters and 2400 meters water depth, respectively.  
Deliveries of the risers will be completed from Aker Kvaerner's
new state-of-the-art facility in Rio das Ostras, Brazil, for
delivery within the next 17 to 30 months.

The drilling risers will be installed in three different rigs.  
Two of the rigs will operate throughout the Brazilian offshore
coast serving long-term contracts between Queiroz Galvao and
Brazil's national oil company Petrobras.  The third is analyzing
opportunities to work either in Brazil or internationally.

"These awards represent another major milestone for Aker
Kvaerner's risers business, As the first company to manufacture
drilling risers in Brazil, Aker Kvaerner is supporting the
development of Rio de Janeiro state industry and reinforcing its
established position of strong supplier of subsea equipment in
Brazil," Raymond Carlsen, Executive Vice President Aker
Kvaerner, said.

The agreements are signed between the Aker Kvaerner Subsea
division of Aker Kvaerner Oil and Gas Brasil Ltda, Aker Kvaerner
Subsea AS and the Queiroz Galvao Group.

                       About Aker Kvaerner

Headquartered in Lysaker, Norway, Aker Kvaerner ASA --
http://www.akerkvaerner.com/-- through its subsidiaries and  
affiliates, provides engineering and construction services,
technology products and integrated solutions.

The Aker Kvaerner group is organized into two principal business
streams, namely Oil & Gas and E&C.  The group operates in
Singapore, Austria, Azerbaijan, Belgium, Denmark, Finland,
France, Germany, Netherlands, Poland, Russia, Spain, Sweden,
United Kingdom, Australia, China, India, Indonesia, Japan,
Malaysia, South Korea, Thailand, Brazil, Chile, Canada and the
United States.

                          *     *     *

Moody's Investors Service upgraded the of Aker Kvaerner Oil &
Gas Group and Aker Kvaerner AS, primarily to reflect the
sustainable strong recovery in profitability and cash flow
generation of the ring- fenced oil and gas group over the past
two years, coupled with the clear reduction in senior debt,
repaid from internally generated funds.

Ratings affected:

Aker Kvaerner Oil & Gas Group AS

   -- Corporate family rating: upgraded to Ba1 from Ba3

Aker Kvaerner AS

   -- Rating of the second priority lien notes due 2011:
      upgraded to Ba1 from Ba3.

Moody's said the outlook on all ratings is stable.


AVAGO TECHNOLOGIES: Moody's Assigns Loss-Given-Default Ratings
--------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. technology semiconductor and
distributor sector, the rating agency affirmed its B2 corporate
family rating on Avago Technologies Finance Pte. Ltd.

Additionally, Moody's revised or held its probability-of-default
ratings and assigned loss-given-default ratings on these loans
and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$250MM Senior
   Secured Revolver
   due 2012                B1      Ba2     LGD1        4%

   US$500MM 10.125% Sr.
   Unsecured Notes
   due 2013                B3       B2     LGD3        47%

   US$250MM Floating Rate
   Sr. Unsecured Notes
   due 2013                B3       B2     LGD3        47%

   US$250MM 11.875% Sr.
   Subordinated Notes
   due 2015               Caa2     Caa1    LGD6        91%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's
research has shown that credit losses on bank loans have tended
to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

                     About Avago Technologies

Headquartered both in San Jose, CA, and in Singapore, Avago
Technologies Holdings Pte. Ltd. -- http://www.avagotech.com/--   
is a semiconductor company, with approximately 6,500 employees
worldwide.  Avago provides an extensive range of analog, mixed-
signal and optoelectronic components and subsystems to more than
40,000 customers.  The company's products serve four end
markets: industrial and automotive, wired networking, wireless
communications, and computer peripherals.

It has manufacturing and marketing centers in Singapore, United
States, Italy, Germany, Korea, China, Japan and Malaysia.

Avago Technologies is the successor to the Semiconductor
Products Group of Agilent.  Avago Technologies purchased the
business of SPG as of December 1, 2005, for US$2.6 billion in
cash.


CHEMTURA CORP: Declares Quarterly Dividend of US$0.05 Per Share
---------------------------------------------------------------
Chemtura Corp. declared a regular quarterly dividend of five
cents per share on the common stock of the corporation, payable
Nov. 24, 2006, to shareholders of record on Nov. 6, 2006.

                    About Chemtura Corp.

Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:
CEM) -- http://www.chemtura.com/-- is a global manufacturer and  
marketer of specialty chemicals, crop protection and pool, spa
and home care products.  The company has approximately 6,400
employees around the world and sells its products in more than
100 countries.  In the Asia Pacific, Chemtura has facilities in
Australia, China, Hong Kong, India, Japan, Singapore, South
Korea, Taiwan, and Thailand.

                          *     *     *

Standard & Poor's Ratings Services revised its outlook on
Middlebury, Connecticut-based Chemtura Corp. to stable from
positive and affirmed the existing 'BB+' corporate credit and
senior unsecured debt ratings.

Moody's Investors Service assigned a Ba1 rating to Chemtura
Corp.'s US$400 million of senior notes due 2016 and affirmed the
Ba1 ratings for its other debt and the corporate family rating.


HEXION SPECIALTY: Extends Tender Offer for Sr. Notes to Nov. 13
---------------------------------------------------------------
Hexion Specialty Chemicals, Inc., has extended the expiration
date of its cash tender offers, for any and all of the
outstanding 9% Second-Priority Senior Secured Notes due 2014 and
the Second-Priority Senior Secured Floating Rate Notes due 2010
issued by Hexion U.S. Finance Corp. and Hexion Nova Scotia
Finance, ULC, to 5:00 p.m., New York City time, on Nov. 13,
2006, unless further extended.  In connection with the extension
of the tender offers Hexion is changing the Price Determination
Date for the 9% Notes which shall now be Oct. 30, 2006.

As of Oct. 24, 2006, tenders and consents had been received with
respect to 100% of the outstanding principal amounts of the
Notes.  The tender offers and consent solicitations are subject
to the terms and conditions set forth in Hexion's Offer to
Purchase and Consent Solicitation Statement dated Oct. 12, 2006,
and the related Consent and Letter of Transmittal.

Hexion has retained Credit Suisse Securities (USA) LLC to act as
Dealer Manager in connection with the tender offer and consent
solicitation.

Questions about the tender offer and consent solicitation may be
directed to:

         Credit Suisse Securities (USA) LLC
         Telephone: (800) 820-1653 (toll free)
                    (212) 325-7596 (collect)

Copies of the Offer Documents and other related documents may be
obtained from the information agent for the tender offer and
consent solicitation at:

         D.F. King & Co., Inc.
         Telephone: (800) 290-6426 (toll free)
                     (212) 269-5550 (collect)

Based in Columbus, Ohio, Hexion Specialty Chemicals Inc.
-- http://hexionchem.com/-- makes thermosetting resins (or  
thermosets).  Thermosets add a desired quality (heat resistance,
gloss, adhesion) to a number of different paints and adhesives.
Hexion also makes formaldehyde and other forest product resins,
epoxy resins, and raw materials for coatings and inks.  The
company has 86 manufacturing and distribution facilities in
18 countries.

The company has its Asian headquarters in Singapore, with
offices in Australia, China, Korea, Malaysia, New Zealand,
Taiwan, and Thailand.

                          *     *     *

Moody's Investors Service assigned B3 ratings to the new
guaranteed senior secured second lien notes due 2014 of Hexion
Specialty Chemicals Inc.  The company expects to issue roughly
US$825 million of notes split (55/45) between fixed and floating
rate notes.  The new notes will be used to refinance roughly
US$625 million of existing second lien notes and partially fund
a US$500 million dividend to existing shareholders.  A US$375
million increase in the company's existing guaranteed senior
secured first lien term loan to US$2 billion, rated Ba3, will
fund the remainder of the extraordinary dividend.

Moody's also affirmed Hexion's other long term debt ratings and
its SGL-2 speculative grade liquidity rating.  As a result of
this refinancing, the LGD assessment rates have changed as shown
in the table below.  The outlook is stable and the ratings on
the existing second lien notes will be withdrawn upon successful
completion of the refinancing.

New ratings assigned:

   * Hexion Specialty Chemicals Inc.

     -- Floating Rate Gtd. Second Lien Sr. Sec Notes
        due 2014 -- B3, LGD5, 75%

     -- Fixed Rate Gtd Second Lien Sr Sec Notes
        due 2014, -- B3, LGD5, 75%

Ratings affirmed with revised LGD rates:

     -- US$225mm Gtd Sr Sec Revolving Credit Facility
        due 5/2011 -- Ba3, LGD2, 24% from 29%

     -- US$50mm Gtd Sr Sec Letter of Credit Facility
        due 5/2011 -- Ba3, LGD2, 24% from 29%

     -- US$1,625mm Gtd Sr Sec Term Loan
        due 5/2013 -- Ba3, LGD2, 24% from 29%*

     -- US$300mm Flt Rate Gtd Second Lien Sr Sec Notes
        due 7/2010 -- B3, LGD5, 75% from 77%**

     -- US$325mm 9.0% Gtd Second Lien Sr Sec Notes
        due 7/2014 -- B3, LGD5, 75% from 77%**

     -- US$34.0mm Pollution Control Revenue Bonds Series 1992
        due 12/2009 -- B3, LGD5, 75% from 77%

Ratings affirmed:

   * Hexion Specialty Chemicals Inc.

     -- Corporate Family Rating -- B2

     -- Probability of Default Rating -- B2

     -- US$114.8mm 9.2% Sr. Unsec Debentures due 3/2021 -- Caa1,
        LGD6, 94%

     -- US$246.8mm 7.875% Sr. Unsec Notes due 2/2023 -- Caa1,
        LGD6, 94%

     -- US$78.0mm 8.375% S.F. Sr. Unsec Debentures
        due 4/2016 -- Caa1, LGD6, 94%

Standard & Poor's Ratings Services assigned its 'B+' rating and
its recovery rating of '3' to Hexion Specialty's US$1.675
billion senior secured term loan and synthetic letter of credit
facilities.

The rating on the existing US$225 million revolving credit
facility was lowered to 'B+' with a recovery rating of '3', from
'BB-' with a recovery rating of '1', to reflect the similar
security package as the new term loan and synthetic letter of
credit facility.

The ratings on the existing senior second secured notes were
raised to 'B', with a recovery rating of '3', from 'B-' with a
recovery rating of '5'.  The ratings on the senior second
secured notes reflect the amount of priority claims of the
revolving facility and the first-lien term loan lenders.

At the same time, Standard & Poor's affirmed its 'B+' corporate
credit rating on Hexion and revised the outlook to stable from
negative.


INTERMEC INC: Moody's Assigns Loss-Given-Default Rating
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. manufacturing sector, the rating agency
confirmed its Ba2 Corporate Family Rating for Intermec Inc., as
well as its Ba3 rating on the company's US$400 million Senior
Unsecured Shelf.  Those debentures were assigned an LGD5 rating
suggesting noteholders will experience an 85% loss in the event
of default.

Additionally, Moody's revised or affirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans and bond debt obligations of the company:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   US$100m 7% Sr.
   Unsec. Notes
   Due 2008               Ba3      Ba3     LGD5       85%

   US$400m Sub.
   Shelf                (P)B1     (P)B1    LGD6       97%

   US$400m Pref.
   Shelf                (P)B2     (P)B1    LGD6       97%

   US$400m Pref.
   Shelf                (P)B2     (P)B1    LGD6       97%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).

Intermec Inc. -- http://www.intermec.com/-- develops,
manufactures and integrates technologies that identify, track
and manage supply chain assets.  Core technologies include RFID,
mobile computing and data collection systems, bar code printers
and label media.  The company has locations in Singapore,
Australia, Bolivia, Brazil, China, France, Hong Kong, and the
United Kingdom.


LINDETEVES-JACOBERG: Enters Sale and Licensing Agreement
--------------------------------------------------------
Lindeteves-Jacoberg Limited, on October 27, 2006, inked a sale
and purchase agreement with Dalian Motor Co Ltd for the sale and
divestment of 70% equity interest of BCW Electric Motor Corp
Ltd, currently a wholly owned subsidiary of Lindeteves-Jacoberg.

The remaining 30% equity interest of BCW will be sold and
transferred to An Xiao Dan, a business associate of Dalian Motor
who is based in Australia, under a separate sale and purchase
agreement.

The aggregate consideration amount of approximately SGD2.00 was
arrived at a willing-buyer and willing-seller basis after taking
into account the net liabilities and the financial position of
BCW.  The company will receive the consideration amount upon the
completion of the Divestment.  Under the sale and purchase
agreements, the company will also be assuming approximately
MYR11 million aggregate liabilities of BCW of which is owed to
certain creditors and approximately MYR19 million which is owed
to banks in respect of bank borrowings.

The completion of the Divestment is subject to the company
having obtained:

   -- approval of the relevant Chinese authorities for the
      Divestment;

   -- approval of its shareholders in a general meeting for the
      Divestment or a dispensation from the requirement to
      obtain shareholders' approval from the Singapore Exchange
      Securities Trading as the Divestment is deemed to be a
      "major transaction" under Rule 1006 of the Listing Manual
      of the Singapore Exchange.  Thus, the company will be
      writing to the Singapore Exchange to seek a waiver
      granting the shareholders' approval.  If the waiver
      is not granted, the company shall hold a general meeting
      to seeking the shareholders' approval; and

   -- approval from the Scheme Creditors.

The Divestment is expected to result in a net loss of
approximately SGD13.7 million, assuming that the transaction had
been completed on January 1, 2005.

Lindeteves-Jacoberg decided to sell and transfer its BCW shares
since BCW has been incurring losses since 2002 and requires a
substantial amount of additional funds to enable it to carry on
its operations.  As at August 31, 2006, the net liabilities of
BCW were approximately SGD52.5 million.  For the first half-year
ended June 30, 2006, BCW reported a pre-tax loss of
approximately SGD27.3 million.  Its monthly losses continued in
the months of July, August and September 2006.

The company also needs to finance BCW to be restructured and
transformed into a competitive manufacturing facility, which
Lindeteves-Jacoberg cannot provide, due to its tight liquidity
position and can prejudice other operations of Lindeteves-
Jacoberg's group of companies.

In connection with the sale and divestment of the equity
interest, Lindeteves-Jacoberg has also entered into a licensing
agreement with Dalian on October 27, 2006.  Under the License
Agreement, Dalian is licensed on an exclusive basis to produce
and sell motors under the "Brook Crompton" and "Western
Electric" brands owned by the Group for distribution and use in
China only.  Dalian may also sell motors bearing the Brands
outside China provided that the sales are made to the Group
only.  The License Agreement will be effective for a period of
three years beginning on October 2006.  Dalian will pay
Lindeteves-Jacoberg an annual license fees for the use of
the Brands.

                   About Lindeteves-Jacoberg

Lindeteves-Jacoberg Limited - http://www.linjacob.com/-- was
incorporated in Singapore on December 11, 1947 as part of a
Dutch international trading group.  Its principal activities
consist of investment holding, provision of warehousing and
rental services and acting as specialist mechanical and
electrical contractor for environmental engineering projects.

The company is currently working out further debt restructuring
plans for its liabilities, in addition to an earlier approved
Scheme of Arrangement with its creditors.

As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 27, 2006, Lindeteves-Jacoberg's total assets as of October
2006 was US$225.52 million and its total shareholder equity
deficit was US$53.23 million.


MAE ENGINEERING: Notes Shareholders' Change of Interests
--------------------------------------------------------
MAE Engineering Ltd, on October 26, 2006, disclosed its
shareholders changes of interest.

Ong Puay Koon and United Overseas Bank Nominees (Pte) Ltd, both
registered shareholders of MAE Engineering held 88,297,814
shares before the change with 10.64% issued share capital.  
After the change, Mr. Ong holds 133,297,814 shares with 16.06%
issued share capital.

The change reflects the re-classification of 45,000,000 shares
owned by Mr. Ong but held by United Overseas Bank from deemed
interest to direct interest.  The aggregate shareholding of the
direct and deemed interest of Mr. Ong remains unchanged at
393,022,704 shares or 47.35% issued share capital.

Bin Tai Holdings Private Limited, a substantial shareholder of
the company has re-classified his shareholding from deemed
interest to direct interest.  Before the change, Bin Tai held
181,500,000 deemed shares with 21.87% issued share capital.  
After the change, Bin Tai holds 181,500,000 direct shares
with 21.87% issued share capital.

                   About MAE Engineering

Headquartered in Singapore, MAE Engineering Limited is engaged
in the provision of integrated electrical and mechanical
engineering services including designing, planning and
procurement.  These services are categorized into electrical
installations, mechanical installations, electrical power supply
installations, instrumentation and building automation as well
as maintaining electrical and mechanical systems.  The Group
also offers consulting and specialist services to oceanariums
and aquariums.  The Group has disposed off its prawn and fish
farming as well as edutainment businesses, after suffering
accumulated losses of SGD48 million as of September 30, 2005.
The company also suffered a liquidity crunch since September 30,
2005, when its total current liabilities of SGD23,695,000
exceeded its total current assets of SGD5,582,000.

As of March 31, 2006, the company's balance sheet showed
SGD7,404,000 in total assets and SGD27,257,000 in total
liabilities, resulting in a SGD19,853,000 stockholders' equity
deficit.  The Company's March 31, 2006 balance sheet also
revealed strained liquidity with SGD6,346,000 in total current
assets available to pay SGD27,200,000 in total current
liabilities coming due within the next 12 months.


PETROLEO BRASILEIRO: Reaches Gas Exploration Pact with Bolivia
--------------------------------------------------------------
Petroleos Brasileiro aka Petrobras and Yacimientos Yacimientos
Petroliferos Fiscales Bolivianos reached an agreement on
Oct. 28, 2006, that will allow the company to remain in Bolivia
performing in the gas exploration and production businesses in
the San Alberto and San Antonio fields, in Tarija.

After extensive negotiations, the agreement that was signed
regulates the new gas exploration and production conditions in
the above-mentioned fields.  The gas price issue and the matter
involving the Bolivian refineries that belong to Petrobras were
not dealt with in the agreement.  The document will be sent to
the Bolivian National Congress for final analysis.

Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
was founded in 1953.  The company explores, produces, refines,
transports, markets, distributes oil and natural gas and power
to various wholesale customers and retail distributors in
Brazil.

Petrobras has operations in China, India, Japan, and Singapore.

Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.

Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:

  Maturity Date           Amount        Rate       Ratings

  April  1, 2008      US$400,000,000    9%          BB+
  July   2, 2013      US$750,000,000    9.125%      BB+
  Sept. 15, 2014      US$650,000,000    7.75%       BB+
  Dec.  10, 2018      US$750,000,000    8.375%      BB+

Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.


PREMIER INTERNATIONAL: Creditors Proofs of Debt Due on Nov. 20
--------------------------------------------------------------
Premier International Marketing Pte Ltd, which was placed under
members' voluntary liquidation, asks its creditors to submit
their proofs of debt by November 20, 2006, to be included in the
company's distribution of dividend.

The company's liquidator can be reached at:

         Chen Kung
         3 Phillip Street
         #10-03 Commerce Point
         Singapore 048693


UNITED TEST AND ASSEMBLY: S&P Gives 'BB-' Corp. Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Singapore's United Test And Assembly Center
Ltd., the world's sixth-largest outsourced semiconductor
assembly and test company.  The outlook is stable.  At the same
time, Standard & Poor's assigned its 'BB-' rating to UTAC's
proposed US$200 million convertible bonds due 2013.

"The rating on UTAC factors in its favorable position in the
semiconductor test market, moderate leverage, and robust growth
prospects for the global outsourced semiconductor test and
assembly market," said Standard & Poor's credit analyst Raymond
Hsu.  "Nevertheless, the rating on UTAC is constrained by high
industry risks, the company's relatively weak semiconductor
assembly operations, and negative free cash flow due to its
relatively aggressive expansion plan."

UTAC became the world's sixth-largest outsourced semiconductor
assembly and test service provider after its acquisition of UTAC
Thai Ltd., previously known as NS Electronics Bangkok (1993)
Ltd.  The acquisition was completed in June 2006.  Semiconductor
test services accounted for 61% of UTAC's revenue in the first
half of 2006.  UTAC also provides assembly services for a broad
range of leadframe and array packages, partly through turnkey
services.  About 39% of UTAC's revenues were derived from
semiconductor assembly in the first half of 2006.  UTAC operated
1,010 wire bonders and 747  testers in its facilities in
Singapore, Taiwan, Thailand, and China as at June 30, 2006.

The issue proceeds from the proposed convertible bonds will be
primarily used to repay the company's US$175 million bridge loan
for the acquisition of UTL, pay down other debt and for general
corporate purposes.  The acquisition of UTL has broadened UTAC's
customer base, enhanced its position in the semiconductor
assembly market, and diversified its product mix away from the
volatile dynamic random access memory market.

UTAC's liquidity is adequate.  At June 30, 2006, the company had
cash and cash equivalent of US$84 million, compared with current
debt of US$38 million.  The company also has unused committed
credit facilities of US$135 million.

"The stable outlook reflects our view that UTAC will continue to
maintain its favorable position in the semiconductor test
market, as well as moderate leverage despite expected high
capital spending," said Mr. Hsu.  "The rating has factored in
the expected impact of the proposed bond issue on UTAC's credit
measures.  The rating also takes into account integration risks
relating to the UTL acquisition."


===============
T H A I L A N D
===============

BANK OF AYUDHYA: GE Confirms Stock Purchase Deal
------------------------------------------------
GE Capital International Holdings Corp has confirmed that it
will buy a 25.4% stake in Bank of Ayudhya, with the first share
purchase to be made by January 10, 2007, The Nation reports.

As reported by the Troubled Company Reporter - Asia Pacific on
September 25, 2006, Bank of Ayudhya shareholders have agreed to
sell 2 billion shares to the GE unit, starting with the initial
purchase of 1.39 billion shares, to be sold at THB16 each
totaling THB22.24 billion.

According to press reports, Bank of Ayudhya originally planned
to complete the sale on October 10, 2006, but was postponed due
to change of situation following Thailand's military coup.

In a statement addressed to the Stock Exchange of Thailand, Bank
of Ayudhya's president, Pongpinit Tejagupta, said that the bank
had received a written confirmation from GE of its intention to
subscribe to the new shares.

"GE Capital International Holdings has also given a written
guarantee from GE Capital Corporation, the parent company of
GECIH, to the bank to guarantee the subscription of the capital-
increase shares," Bank of Ayudhya also said in its statement.

The Nation notes that the sale has been divided into two
transactions in order to avoid violating the 49% limit on
foreign ownership of Thai banks.

Currently, foreign investors hold a combined 32% stake in the
Bank, The Nation says.  Issuing new shares to GE Capital will
serve to dilute the level of foreign ownership in the bank.

GE's stake will fall to 25.4% if 1.217 billion outstanding Bank
of Ayudhya warrants are fully exercised by September 2008.  The
initial investment will lift the Bank's capital to
THB42.62 billion from THB28.71 billion.

Bank of Ayudhya said that the price at which the remaining 609
million shares are sold could vary depending on when GE makes
the final purchase, and that this could further dilute the
foreign ownership level.

Over the next two months, Bank of Ayudhya and GE Capital would
draft a business plan for next year focusing on boosting retail
loans, The Nation notes.

Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co.
Ltd. -- http://www.krungsri.com/-- provides a full range of  
banking and financial services.  The bank offers corporate and
personal lending, retail and wholesale banking; international
trade financing asset management; and investment banking
services to customers through its branches.  It has branches in
Hong Kong, Vietnam, Laos, and the Cayman Islands.

                          *     *     *

Moody's Investors Service gave Bank of Ayudha an 'E+' bank
financial strength rating.

Fitch Ratings gave the bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating, a 'B' Short-Term Foreign Currency Rating,
a 'BB' Foreign Currency Subordinated Debt Rating, and a 'D'
Individual Rating.


SAS AB: To Sell 75% Outstanding Shares in Rezidor Hotel
-------------------------------------------------------
SAS Group's subsidiary, Rezidor Hotel Group AB, has commenced
the formal process of seeking a listing on the Nordic List of
the Stockholm Stock Exchange.  The IPO will be completed by the
end of 2006, subject to market conditions and final SAS AB's
Board approval.

On June 22, 2006, SAS disclosed its intention to prepare for a
listing of Rezidor through an IPO on the Stockholm Stock
Exchange.  The divestiture of Rezidor is in line with SAS's
strategy to focus on its core airline activities.  The offering
is expected to allow SAS to exit completely from the hotel
business, continuing the process initiated in 2005 when Carlson
acquired 25% of Rezidor's shares.

Over the last several years, Rezidor has generated significant
growth.  In parallel, Rezidor has made a strategic shift from
owning hotel properties to hospitality management, initiated in
1997 and completed in 2005 when Rezidor sold its last remaining
hotel.  Rezidor continues to grow based on this flexible, asset-
light business model and believes it is well positioned to
continue to generate profitable growth.  

Rezidor believes it will be able to improve its strategic focus
even further as a public company.  The board of directors and
management team will be accountable directly to its shareholders
and focused exclusively on its core hospitality management
operations.  Rezidor will not receive any of the proceeds from
the sale of the shares by SAS in the offering.

Rezidor believes its listing will increase attention from the
capital markets and the media and improve the profile of both
the company and the Rezidor brands.  Rezidor believes this
should further enhance its position in its markets, expand its
opportunities to obtain contracts with attractive partners and
property owners, and further strengthen the platform for the
future development of its business.

In connection with the IPO, SAS expects to sell its entire
shareholding, equal to 75% of all the outstanding Rezidor
shares.  No new Rezidor shares will be issued.  Carlson, a
leading U.S. travel and hospitality company, has confirmed its
intention to remain a significant shareholder in Rezidor and
will increase its stake from 25 to 35% of Rezidor through the
purchase of shares from SAS at the IPO price.

Gunnar Reitan, Acting President and CEO of SAS Group, commented:
"Listing Rezidor on the Stockholm Stock Exchange benefits all
parties. For Rezidor, it is a logical move as it prepares for
its next stage of development and for SAS, the listing of
Rezidor is in line with SAS's stated strategy of focusing on
core airline activities."

                          About Rezidor

Rezidor is one of the fastest growing hotel companies in Europe
as measured by the number of hotel rooms added to the portfolio
from 2003 through 2005.  The hotels in its portfolio are
principally operated under two key hotel brands, Radisson SAS
and Park Inn, but also under three development brands, Regent,
Hotel Missoni and Country Inn.  As of September 30, 2006,
Rezidor had 226 hotels in operation and 46 hotels under
development, all of which, except for one hotel in China, are
located in the EMEA area.

                            About SAS

Headquartered in Stockholm, Sweden, SAS AB --
http://www.sasgroup.net/-- is the Nordic region's largest  
listed airline and travel group and the fourth-largest airline
group in Europe, in terms of passengers.  It had revenues of
SEK61.89 billion in fiscal year 2005.  The company has
operations in China, Japan, and Thailand.

                          *     *     *

On Oct. 26, 2006, Moody's Investors Service affirmed SAS's B1
Corporate Family, B2 Senior Unsecured, and B3 Subordinated
ratings and changed the outlook to stable from negative
following the recent improvement in operating performance of SAS
AB, and the company's announcement that it plans to sell the
remaining 75% stake it owns in Rezidor by the end of the year.


SAS AB: Stake Sale Plan Prompts Moody's to Affirm Ratings
---------------------------------------------------------
Moody's Investors Service affirmed SAS AB's ratings and changed
the outlook to stable from negative following the recent
improvement in the company's operating performance, and in its
announcement that it plans to sell the remaining 75% stake it
owns in Rezidor Hotek Group AB by the end of the year.

The ratings of SAS (B1 Corporate Family Rating, B2 Senior
Unsecured, B3 Subordinated) reflect the application of Moody's
rating methodology for government-related issuers, which combine
these inputs:

    -- SAS's Baseline Credit Assessment (BCA) of 15 (on a
       scale of 1 to 21, 15 representing the equivalent
       of B2), which is Moody's opinion on the stand-alone
       credit quality of the company,

    -- the Aaa ratings of the supporting governments:     
       Denmark, Norway and Sweden,

    -- the default dependence between SAS and the
       supporting governments, which is considered as low,
       and

   -- the expected level of support from the
      supporting governments, which is also viewed as low.

Moody's acknowledges that SAS's BCA has enjoyed a gradual
strengthening, reflecting the company's improved operating
performance, driven by positive traffic and yield development,
higher load factors, the introduction of a new business model,
and the positive impact on its cost structure of the
successfully executed restructuring program.

SAS's BCA of 15 reflects the company's good position as
Scandinavia's number-one passenger carrier under the SAS brand
and other leading regional airlines, as well as its commitment
to improve its competitiveness through a substantial cost-
cutting program.  The current BCA also factors in the
increasingly competitive environment, particularly from low-cost
carriers, and the continuous pressure on profitability from high
fuel prices.

Furthermore, Moody's notes SAS's recent announcement of the
company's intention to list its remaining 75% stake in its hotel
business Rezidor.  When the transaction is completed and if the
proceeds were to be applied to debt reduction, Moody's may
revisit the ratings in light of the new corporate structure and
the pro forma credit metrics excluding Rezidor that will benefit
from a reduction in financial debt and lease-adjusted debt,
which could lead Moody's to raise SAS's BCA to 14 from 15.

Moody's also factors into the rating a degree of uncertainty
related to the potential change in SAS's ownership structure.
The newly elected Swedish government has publicly stated that
its stake in SAS could be sold as part of an upcoming
privatization program.  However, Moody's notes that there is
little clarity at this stage regarding the details of this
privatization program, in particular the sequencing of such
sales. Should a change in the ownership structure occur, Moody's
would revisit its assessment of the level of support now
embedded into the rating.  Should the BCA remain unchanged at
15, any reduction in the level of support would likely imply a
one-notch downgrade of all ratings.  If the BCA were to be
upgraded to 14, the ratings would likely be affirmed regardless
of any change in support.

SAS AB, headquartered in Stockholm, Sweden, is the Nordic
region's largest listed airline and travel group and the fourth-
largest airline group in Europe, in terms of passengers.  It had
revenues of SEK61.89 billion in fiscal year 2005.

The company has operations in China, Japan, and Thailand.


TMB BANK: May Miss THB10-Billion Net Profit Target for 2006
-----------------------------------------------------------
TMB Bank Pcl disclosed on November 1, 2006, that it will likely
miss its THB10-billion net profit target for 2006 due to lower
than expected loan growth, Reuters says.

"It should not reach THB10 billion because our loans to large
clients grew a little bit slower," Somchainuk Engtrakul, the
bank's chairman, told Reuters.

In addition, TMB president Subhak Siwaraksa said he expected the
bank's 2006 net profit would be lower than the THB7.8 billion
earned in 2005, but forecast earnings would rise in 2007.

Nine analysts polled by Reuters estimate a mean net profit of
THB5.9 billion in 2006, down 24% from a year earlier, and a net
profit of THB6.3 billion in 2007.

Reuters notes that in the first nine months of this year, TMB
made THB4.6 billion in net profit, down 25% from the same period
a year earlier.

The bank with assets of about US$19 billion should see loan
growth of only 2-3% this year, below its 4% target, Mr. Subhak
said and forecast growth of 8-9% next year.

It would also postpone a plan to sell non-performing loans worth
about THB20 billion to next year from December, he said.

"We have hired an adviser to study the plan, which should be
concluded in the fourth quarter or early next year," Mr. Suphak
added.

Headquartered in Bangkok, Thailand, TMB Bank Public Co. Ltd --
http://www.tmbbank.com/-- is a commercial bank that renders  
financial services to all groups of customers.   TMB Bank had
total assets of about THB717 billion as at December 31, 2005.

                          *     *     *

Fitch Ratings gave TMB Bank a 'BB+' Long-Term Foreign Currency
Issuer Default Rating; 'B' Short-Term Foreign Currency Rating;
'BB' Foreign Currency Subordinated Debt Rating; 'D' Individual
Rating; and Support rating of 3.

Moody's Investor Service gave TMB Bank a 'Ba1' Junior
Subordinated Debt Rating and an 'E+' Bank Financial Strength
Rating.

Standard & Poor's Ratings Services gave TMB Bank's US$200-
million hybrid Tier 1 securities a 'BB' rating.



                            *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.  
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter - Asia Pacific is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Nolie Christy Alaba, Rousel Elaine Tumanda,
Valerie Udtuhan, Francis James Chicano, Catherine Gutib, Tara
Eliza Tecarro, Freya Natasha Fernandez, and Peter A. Chapman,
Editors.

Copyright 2006.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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Information contained herein is obtained from sources believed
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                 *** End of Transmission ***