TCREUR_Public/081112.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, November 12, 2008, Vol. 9, No. 225

                            Headlines

B U L G A R I A

PETROL AD: Fitch Junks Issuer Default & Senior Unsecured Ratings


F R A N C E

CGG VERITAS: To Acquire Norwegian Seismic Company Wavefield
COMPAGNIE GENERALE: S&P's BB Rating Unaffected by US$310MM Offer

* France May Breach European Union's Deficit Limit in 2009


G E R M A N Y

BEITH - BAU: Claims Registration Period Ends November 19
BOBOTEC GMBH: Claims Registration Period Ends November 19
DOLMEN VERLAG: Claims Registration Period Ends November 19
DRESDNER BANK: Incurs EUR2.4 Bil. Loss in 9-Mos Ended Sept. 2008
EUROHOME MORTGAGES: Moody's Junks EUR2.7MM Class X Notes' Rating

EUROHOME MORTGAGES: Fitch Junks Ratings on Two Tranches
GAWA GEBAUDETECHNIK: Claims Registration Period Ends Nov. 19
HEIDELBERGCEMENT AG: Credit Default Swaps Hit Record High
PFRIEM BETEILIGUNGS: Claims Registration Period Ends Nov. 18
SCHMITZHAUS GMBH: Claims Registration Period Ends November 18


I R E L A N D

CRH PLC: Expects Full Year Percentage Decline in Profit
DECO 7: S&P Downgrades Rating on Class H Notes to 'B+'
HALYARD CDO: Asset Liquidation Spurs S&P to Cut Ratings to 'D'
PALMER SQUARE: Credit Deterioration Cues Moody's to Slash Ratings
WATERFORD WEDGEWOOD: Moody's Junks Senior Subordinated Rating


K A Z A K H S T A N

TRISTAN OIL: Fitch Affirms IDR and Senior Unsecured Rating at B+

* Fitch Cuts Long-Term Foreign Currency Ratings on Four Companies
* Fitch Downgrades LT Foreign Currency IDRs of Seven Kazakh Banks


K Y R G Y Z S T A N

INFO-LINE LLC: Creditors Must File Claims by November 28
MEDIA PRO: Creditors Must File Claims by November 28


L A T V I A

PAREX BANK: Latvian Government Takes 51% Stake in Bank


P O L A N D

GDYNIA: EU Commission Agrees on Terms for Recovery of State Aid
SZCZECIN: EU Commission Agrees on Terms for Recovery of State Aid


R O M A N I A

* Fitch Affirms 'D' Individual Ratings on Four Romanian Banks


R U S S I A

EUROPEAN TRUST: S&P Withdraws 'CCC+' Rating at Bank's Request
KAZANORGSINTEZ OJSC: Fitch Junks IDR & Sr. Unsecured Debt Rating
SUKHOI CIVIL: Fitch Holds Low-B Ratings; Outlook Negative
WIMM-BILL-DANN: Moody's Revises Outlook on Ba3 Rating to Negative

* NOVGOROD OBLAST: S&P Assigns 'B' Long-Term Issuer Rating


S P A I N

FONCAIXA FTPYME: Moody's Puts (P)C Rating on EUR76.4MM Notes
SANTANDER HIPOTECARIO: S&P Affirms Junk Ratings on 3 Note Classes


S W E D E N

D. CARNEGIE: Swedish Government Takes Control


U K R A I N E

CAR TECHNICS: Creditors Must File Claims by November 22
FARCIDA LLC: Creditors Must File Claims by November 21
FERRUM-M LLC: Creditors Must File Claims by November 22
MAKAROV MOTORCAR: Creditors Must File Claims by Nov. 22
MALIN CELLULOSE-PAPER: Creditors Must File Claims by Nov. 22

SERVICE-CLASSIK LLC: Creditors Must File Claims by November 21
SPHERE-TRANS LLC: Creditors Must File Claims by November 22
TECHNO-PROM LLC: Creditors Must File Claims by November 21
TECHNOSTAR-XXI LLC: Creditors Must File Claims by November 22
TH TECHNOVSESVIT: Creditors Must File Claims by November 21


U N I T E D   K I N G D O M

AUTUMN GRANGE: Picks Joint Administrators from Grant Thornton
BRITISH AIRWAYS: Reports GBP52 Mil. PBT in First Half 2008
DANWEL LTD: Names Tenon Recovery as Joint Administrators
DELTA CDO: Credit Deterioration Cues Moody's Junk Ratings
DSR PRINT: Appoints Joint Administrators from BDO Stoy

HADDON HEALTHCARE: Taps Joint Administrators from Grant Thornton
ILIAD INVESTMENT: Moody's Slices Ratings on Six Classes of Notes
J & F WEDDINGS: Taps Joint Liquidators from Tenon Recovery
LANDMARK MORTGAGE: S&P Puts Low-B Ratings on Classes C & D Notes
MFI RETAIL: Decathlon May Acquire Stores Under Administration

MONIER: Hires Goldman to Restructure Debt on Breach Concerns
OCTAGON LIMITED: Moody's Cuts Rating on EUR6 Million Notes to C
PARK ASSOCIATES: Taps Joint Administrators from Grant Thornton
PARK GROUP: Appoints Joint Administrators from Grant Thornton
RATHVILLY SCHOOL: Names Joint Administrators from Deloitte

REC PLANTATION: Fitch Cuts Rating on Class E Notes to BB
ROL REALISATIONS: Appoints Joint Administrators from PKF
TAGGART HOMES: Names Joints Administrators from PwC
TATA STEEL: Fitch Affirms UK Unit's 'BB' LT Foreign Currency IDR

* Downturn Hampers Rescue of Ailing Businesses, PwC Survey Shows
* EU Service Sector Set to Contract, KPMG Survey Says


                         *********


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B U L G A R I A
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PETROL AD: Fitch Junks Issuer Default & Senior Unsecured Ratings
----------------------------------------------------------------
Fitch Ratings downgraded Bulgaria-based fuel distributor Petrol
AD's Issuer Default Rating and the senior unsecured rating for its
EUR100 million notes due in 2011 to 'CCC' from 'B-'.  Both ratings
have been removed from Rating Watch Negative.  Fitch has assigned
a Negative Outlook to the Long-term IDR.

The downgrades were prompted by a sizable share repurchase
undertaken by Petrol AD in Q208, increased financial leverage and
Fitch's concerns about corporate governance.  Concern about
diminished earnings, due to an asset disposal of an important part
of the petrol station network, and large losses on derivatives
transactions have also negatively affected Petrol AD's business
and financial profile.

The Recovery Rating on the notes is affirmed at 'RR4.'

Petrol AD's financial profile, including its credit metrics,
worsened substantially in Q208 due to a BGN90.7 million share
repurchase, derivative losses of BGN71.5 million, working capital
needs of BGN81.1 million and because of loans granted to related
parties outside the Petrol AD group.  Fitch estimates that Petrol
AD's net leverage will increase markedly to 6.5-7.5x range at end-
2008 on the back of weaker EBITDA generation, which was driven by
lost volume and earnings.  It should be stressed that originally
Petrol AD's management forecasted a net cash position at FYE08,
which should have mitigated the deteriorated EBITDA during this
transition period.

Fitch is concerned about the company's corporate governance,
especially as completion of the share-buyback was not in
accordance with the planned use of proceeds from the sale of a
cash-generating assets to Lukoil Bulgaria.  Fitch regards the
share-buyback as a quasi-dividend payment, which benefits
shareholders to the detriment of bondholders.  Additionally,
Petrol AD granted a US$20 million loan to a related company
outside the Petrol AD group.  The issuer is still subject to
numerous other sizable related-party transactions, including
inter-company loans, debt guarantees.  Petrol's management has
stated to Fitch that Petrol AD's use of the disposal proceeds
complies with provisions in the EUR100 million bond documentation.

The Negative Outlook reflects the worsened business profile of
Petrol AD following the sale of the cash-generating assets to
Lukoil Bulgaria.  Despite management plans to recover the lost
volume and earnings in a short period of time, planned
acquisitions in the Bulgarian market and investments in Petrol
AD's network have been delayed.  Fitch believes EBITDA recovery
could be challenging because of the sluggish acquisition process
and cash out-flow in Q208.

Although the liquidity position of Petrol AD was negatively
affected by the share repurchase, losses on derivatives
transactions and working capital changes, Fitch assesses Petrol
AD's cash position of BGN89.4 million at end-June 2008 as
sufficient to repay short-term debt.  This relates to the BGN15
million bonds maturing on November 20 2008.  Petrol AD's
management recently confirmed to Fitch that sufficient funds had
been earmarked to redeem the bonds.


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F R A N C E
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CGG VERITAS: To Acquire Norwegian Seismic Company Wavefield
-----------------------------------------------------------
CGGVeritas will make a voluntary exchange tender offer for 100% of
the shares of Wavefield Inseis ASA .

Wavefield is a Norwegian pure-play seismic company which operates
a fleet of 8 vessels and develops geophysical equipment based on
fiber optic technology.  In the third quarter 2008, Wavefield
revenue was US$110 million, and operating income was US$37
million.

    * CGGVeritas will offer eligible Wavefield shareholders 1
      newly issued CGGVeritas share for each 7 Wavefield shares

    * Aggregate equity value implied by the transaction is
      approximately US$310 million, an implied 31% premium for
      the Wavefield shareholders when compared to the closing
      price of November 7, 2008

    * The transaction is immediately accretive to both EPS and
      cash flow per share

    * The net debt coverage ratios remain unchanged post
      transaction

    * The Board of Wavefield unanimously welcomes the CGGVeritas
      Offer

The transaction strengthens CGGVeritas' high-end fleet capability
with immediate access to five recently equipped high capacity 3D
vessels.  The additional complement of three mid 3D and 2D
Wavefield vessels increases overall fleet management flexibility.

Wavefield's Optoplan seabed fiber optic technology for reservoir
monitoring expands the product offering of Sercel and accelerates
market entry of next generation technologies.

Wavefield backlog of US$485 million represents approximately one
year of its revenue.

Robert Brunck, Chairman and CEO of CGGVeritas commented: "I am
very enthusiastic about the combination of Wavefield and
CGGVeritas which will strengthen the technology position of both
our Services and Equipment businesses in the high-end market.
Based on its unique ability to lower the risks associated with
finding and producing oil and gas, high-end seismic is more and
more requested by our clients.

With an expanded technology portfolio, a stronger industry
position and the combined expertise, we will enhance our position
as a preferred partner of our clients.

The combination of the two companies increases our visibility
further into 2009, enhances our ability to generate cash flow and
provides value to our shareholders."

Anders Farestveit, Chairman of Wavefield, stated "CGGVeritas is
well placed to leverage Wavefield resources and expertise to
further develop technology leadership across the full range of
geophysical services and equipment.  The Offer will create an even
stronger global leader within the geophysical industry and provide
operational and commercial synergies which will benefit both
Wavefield and CGGVeritas shareholders.  The global leadership
position will also generate new and exciting opportunities for the
employees, and allow for a further strengthening of the activity
level in Norway."

The exchange offer for the entirety of the share capital of
Wavefield will commence as soon as regulatory and legal conditions
permit, which is currently expected to be on or about November 24,
2008.  Similarly, the offer will expire as soon as regulatory and
legal conditions permit, which is currently expected to be on or
about December 12, 2008.

All newly issued CGGVeritas shares will be promptly listed on NYSE
Euronext Paris and the New York Stock Exchange and will have equal
rights in all respects as the existing CGGVeritas shares.

This information is subject to the disclosure requirements set out
in section 5-12 of the Norwegian Securities Trading Act.

Headquartered in Paris, France Compagnie Generale de Geophysique-
Veritas (NYSE: CGV) -- http://www.cggveritas.com/-- is a provider
of geophysical services and manufacturer of geophysical equipment.
The company has a total workforce of approximately 7,000 staff
operating worldwide.

                         *     *     *

Compagnie Generale de Geophysique-Veritas continues to carry a Ba2
corporate family rating from Moody's Investors Service with stable
outlook.


COMPAGNIE GENERALE: S&P's BB Rating Unaffected by US$310MM Offer
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on France-based seismic oil services company Compagnie
Generale de Geophysique - Veritas (CGG-Veritas; BB/Stable/--)
remain unchanged following its share-based US$310 million offer
for Norwegian seismic company Wavefield Inseis ASA (not rated).

The friendly takeover offer will result in largely unchanged
credit ratios because it will be funded through a share exchange.
Wavefield Inseis had about US$0.15 billion in net debt and the
combined group's net debt was about a pro forma US$1.7 billion at
end-September.  The combined group's 2008 reported EBITDA should
be about US$1.7 billion (or US$1.1 billion on an adjusted basis
when deducting capitalized multiclient expenses).

S&P therefore expects adjusted debt to adjusted EBITDA to be at or
below 2x, in line with S&P's expectations.  S&P views the
transaction positively because it will help consolidate the
industry and expand CGG-Veritas' fleet to 27 vessels--17 of them
high-end 3D--providing the company with flexibility to mothball
lower-end 2D ships during downturns.


* France May Breach European Union's Deficit Limit in 2009
----------------------------------------------------------
Ben Hall at the Financial Times reports that France is likely to
breach the European Union's deficit limit next year.

France's budget deficit, according to the FT, would reach 3.1 per
cent of gross domestic product, breaching the EU's normal deficit
ceiling.

The French government, the FT discloses, slashed its growth
forecast for 2009 Thursday last week from 1-1.5 per cent to
0.2-0.5 per cent.  The government, which has faced criticism in
recent weeks for tabling a draft 2009 budget based on highly
optimistic growth forecasts, foresees a Paris budget deficit of
1.2 per cent in 2012, rather than the 0.5 per cent in September.

French finance minister Christine Lagarde, as cited by the FT
said, the revised growth forecast was "lucid," adding that it was
the "lowest ever put forward by a government in France."
However, she noted the revised figures are still more optimistic
than the forecast of the European Commission, which predicted zero
growth for France next year and a deficit of 3.4 per cent, the FT
states.

The FT quotes Ms. Lagarde as saying the consequences of the
financial crisis "are starting to be felt and will last for
several quarters."  She believes the credit crunch would leave
"lasting effects".

The FT adds a zero deficit by the end of his five-year mandate was
one of President Nicolas Sarkozy's main campaign promises.


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G E R M A N Y
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BEITH - BAU: Claims Registration Period Ends November 19
--------------------------------------------------------
Creditors of Beith - Bau GmbH have until Nov. 19, 2008, to
register their claims with court-appointed insolvency manager
Ralf Diehl.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Dec. 3, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Friedberg
         Hall 20a
         Homburger Road 18
         61169 Friedberg (Hessen)
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Ralf Diehl
         Marktlaubenstrasse 9
         35390 Giessen
         Germany
         Tel: (0641) 93243-60 - 64
         Fax: (0641) 93243-30

The District Court of Friedberg opened bankruptcy proceedings
against Beith - Bau GmbH on Oct. 10, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Beith - Bau GmbH
         Attn: Joerg-Dieter Beith, Manager
         Feldpreul 23
         61191 Rosbach
         Germany


BOBOTEC GMBH: Claims Registration Period Ends November 19
---------------------------------------------------------
Creditors of bobotec GmbH Bautenschutz Abdichtungs- und
Sanierungstechnik have until Nov. 19, 2008, to register their
claims with court-appointed insolvency manager Eberhard Stock.

Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on Nov. 28, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Krefeld
         Meeting Room H 131
         First Floor
         Nordwall 131
         47798 Krefeld
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Eberhard Stock
         Wilhelmshofallee 75
         47800 Krefeld
         Germany
         Tel: (02151) 5813-0
         Fax: +4921515813134

The District Court of Krefeld opened bankruptcy proceedings
against bobotec GmbH Bautenschutz Abdichtungs- und
Sanierungstechnik on Sept. 3, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         bobotec GmbH Bautenschutz
         Abdichtungs- und Sanierungstechnik
         Attn: Horst Boleg, Manager
         Zur Hainbuche 14
         47804 Krefeld
         Germany


DOLMEN VERLAG: Claims Registration Period Ends November 19
----------------------------------------------------------
Creditors of DOLMEN Verlag fuer Verbraucherinformation GmbH have
until Nov. 19, 2008, to register their claims with court-appointed
insolvency manager Jean-Olivier Boghossian.

Creditors and other interested parties are encouraged to attend
the meeting at 2:20 p.m. on Dec. 17, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Saarbruecken
         Area Hall 24
         Branch Office Sulzbach
         Vopeliusstrasse 2
         66280 Sulzbach
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Jean-Olivier Boghossian
         Kapellenstrasse 18
         66271 Kleinblittersdorf
         Germany
         Tel: 06805/ 9090
         Fax: 06805/ 909 100

The District Court of Saarbruecken opened bankruptcy proceedings
against DOLMEN Verlag fuer Verbraucherinformation GmbH on Oct. 1,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         DOLMEN Verlag fuer Verbraucherinformation GmbH
         Attn: Wolfram Schindler, Manager
         Untert=FCrkheimer Strasse 39-41
         66117 Saarbruecken
         Germany


DRESDNER BANK: Incurs EUR2.4 Bil. Loss in 9-Mos Ended Sept. 2008
----------------------------------------------------------------
The tightening of the capital market crisis impacted Dresdner Bank
AG's results in the first nine months of 2008, the bank said in a
November 10 press statement.
According to Dresdner Bank, its operating result fell to minus
EUR1.7 billion
as value adjustments from trading activities amounted to EUR2.1
billion and loan impairment losses were required in the amount of
EUR226 million.

After adjustment for the effects of the financial market crisis,
Dresdner Bank said it generated a positive operating result from
its ongoing business of around EUR600 million in the first three
quarters of 2008.

Dresdner Bank's net fee and commission income also fell by EUR463
million to EUR1.7 billion.

The bank said the effects of the financial market crisis impacted
net trading income in particular.  In the first three quarters of
2008, the figure decreased by EUR1.9 billion year-on-year to minus
EUR1.5 billion.  The main reasons for the decline were value
adjustments on collateralized debt obligations (CDOs) and US
residential mortgage-backed securities (US RMBSs), as well as
effects in connection with monoliners, the bank said.

Overall, the bank's total operating income decreased to EUR2.2
billion.

                     Costs, Risk and Capital

Total operating expenses fell in the first nine months of 2008 by
4.0 per cent, to EUR3.6 billion both relating to total staff costs
and to non-staff operating costs.
Loan impairment losses rose by EUR261 million to EUR337 million.

For the nine months ended September 2008, the bank reported a loss
of EUR2.4 billion, compared to a profit of EUR858 million in the
same period last year.

For the first half-year ended June 2008, the bank reported a net
loss of EUR1.03 billion from net income of EUR1.05 billion a year
ago.

For the first quarter ended March 2008, the bank reported a net
loss of EUR469 million from a net income of EUR644 million in the
comparable quarter in 2007.

The positive effect on the current period's result from the
reclassification of assets amounted to EUR415 million.

Dresdner Bank's core capital ratio as at September 30, 2008, was
8.1 per cent compared to 9.3 per cent at the end of June 2008 and
9.1 per cent at year-end 2007.

Its Private & Corporate Clients (PCC) division was impacted by
clients' markedly cautious approach to securities transactions due
to the uncertainty on the capital markets.  This led to a decrease
in operating income of roughly 7 per cent, to EUR2.5 billion.
Costs were slightly lower, and the operating profit fell by 27 per
cent to EUR458 million.  However, PCC generated a return on risk-
adjusted capital (RoRAC) of 21.9 per cent.

The operating income of Dresdner Bank's Investment Banking
division was negative at EUR275 million, due to the high level of
value adjustments in the trading book.  At lower costs and an
increased loan impairment loss the operating loss totaled to
EUR2.2 billion.  A number of the investment bank's core business
areas increased their income despite the financial market crisis:
Global Loans & Transaction Services, which comprises Cash
Management and International Products, among other things,
recorded growth of EUR33 million to EUR424 million.  Fixed Income,
Currencies & Commodities expanded its income by a third, to EUR844
million.

                     About Dresdner Bank AG

Through its parent, insurance giant Allianz, Dresdner Bank AG's --
http://www.dresdner-bank.com/-- products and services are sold
through some 12,000 insurance agency locations.  Dresdner Bank
also has some 60 offices in Europe, Asia, and the US.  The
company's operating divisions are Private & Corporate Clients
(personal, private, business, and corporate banking; private
wealth management) and Investment Banking (capital markets and
global banking), which includes subsidiary Dresdner Kleinwort.
Fellow Germany-based bank Commerzbank is buying Dresdner Bank for
some US$14.3 billion.


EUROHOME MORTGAGES: Moody's Junks EUR2.7MM Class X Notes' Rating
----------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Eurohome Mortgages 2007-1 plc:

  -- EUR262,500,000 Class A Mortgage Backed Floating Rate Notes
     due 2050, Current Rating: Aaa, on review for possible
     downgrade;

  -- EUR15,000,000 Class B Mortgage Backed Floating Rate Notes
     due 2050, Current Rating: Aa2, on review for possible
     downgrade;

  -- EUR12,000,000 Class C Mortgage Backed Floating Rate Notes
     due 2050, Current Rating: A1, on review for possible
     downgrade;

  -- EUR6,300,000 Class D Mortgage Backed Floating Rate Notes due
     2050, Current Rating: Baa2, on review for possible
     downgrade;

  -- EUR4,200,000 Class E Mortgage Backed Floating Rate Notes due
     2050, Current Rating: Ba2, on review for possible downgrade;
     and

  -- EUR2,700,000 Class X Mortgage Backed Floating Rate Notes due
     2050, downgraded to Caa2 from Ba2, on review for possible
     downgrade.

The ratings of the German Mortgage Early Repayment Certificates
due 2050 and the Italian Mortgage Early Repayment Certificates due
2050 are not under review.

  -- Last rating action date: No rating action since closing in
     July 2007.

This rating action has been prompted by the worse-than-expected
collateral performance.  Moody's expects to conclude the rating
review once Moody's has received additional information and
assessed in detail the effects of the performance on the
outstanding ratings.

The transaction includes mortgage loans originated by Deutsche
Bank in Germany and Italy and was closed in July 2007.  Both sub-
pools have experienced delinquencies far higher than Moody's
initially expected.  As of November 2008, 8.4 per cent of the
loans in the German pool were terminated while in total 17.2 per
cent of the German sub-pool were delinquent.  At the same time 9.2
per cent of the loans in the Italian pool were delinquent by the
equivalent of more than 3 monthly installments, while in total 19
per cent of the sub-pool were delinquent.

The provisioning mechanism for loans in the Italian sub-pool that
are in arrears by 12 monthly installments, has led to reserve fund
drawings on the interest payment dates in August 2008 and November
2008.  By this mechanism, the equivalent of the loan amount of
loans in arrears by 12 monthly installments is credited to the
principal deficiency ledger and leads to trapping of available
excess spread and, in case excess spread is insufficient, to
drawings of the reserve fund.  As a result of such drawings, only
an amount equal to about 8 per cent of the initial balance of the
reserve fund is still available as of November 2008.

Interest and principal on the Class X Notes is paid by available
revenue funds junior in the pre-enforcement revenue priority of
payments.  In Moody's opinion, it is likely - due to their ranking
below the PDL of Class E Notes - that interest on the Class X
Notes will not be paid on future interest payment dates in case of
further poor pool performance.  In such a scenario, available
excess spread would first be used to clear any existing credit
balance of Class E PDL.  The transaction's liquidity facility
cannot be drawn in order to make payments on Class X Notes.  In
addition, principal repayments of Class X Notes rank junior to the
replenishment of the reserve fund, so that, in Moody's opinion, a
significant improvement in the transaction's performance would be
required before principal payments to
Class X Notes will be made.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  Moody's ratings address
only the credit risks associated with the transaction.  Other non-
credit risks have not been addressed, but may have a significant
effect on yield to investors.


EUROHOME MORTGAGES: Fitch Junks Ratings on Two Tranches
-------------------------------------------------------
Fitch Ratings has downgraded all six tranches of Eurohome
Mortgages 2007-1, a pan-European RMBS transaction containing loans
originated by Deutsche Bank AG and Deutsche Bank Mutui S.p.A. Four
tranches remain on Rating Watch Negative.  The downgrade follows
Fitch's ongoing concerns about the performance of the deal and the
recent reserve fund draw, which has led to the further decline in
credit enhancement levels of all the classes.  The rating actions
are:

  -- Class A downgraded to 'AA' from 'AAA'; remains on RWN

  -- Class B downgraded to 'A' from 'AA'; remains on RWN

  -- Class C downgraded to 'BBB' from 'A'; remains on RWN

  -- Class D downgraded to 'B' from 'BBB'; remains on RWN

  -- Class E downgraded to 'CC' from 'BBB'; Distressed Recovery
     Rating of 'DR6' assigned; RWN removed

  -- Class X downgraded to 'CC' from 'BB+'; Distressed Recovery
     Rating of 'DR6' assigned; RWN removed

  -- German Mortgage Early Repayment Certificates affirmed at
     'AAA'; Outlook Stable

  -- Italian Mortgage Early Repayment Certificates affirmed at
     'AAA'; Outlook Stable

According to the latest investor report for November 2008, the
reserve fund draw for Q308 represented 67.02% of the target
amount, leaving 0.09% credit enhancement support to the class E
notes.  This reserve fund draw was a result of defaulted loans
being provisioned for in the Italian part of the pool.  In Q308
EUR2.75 million (i.e. 1.54% of the Italian pool outstanding) was
reported as defaulted, bringing the cumulative balance to 2.17% of
the Italian pool at close.   The investor report for November 2008
reported terminated loans at 8.39% of the current German portfolio
outstanding.  To date, neither of the two pools has reported any
loss on individual loans.

As the volume of loans with three or more missed payments
continues to increase in both pools (currently at 9.22% for the
Italian pool and 1.16% for the German portfolio), Fitch expects to
see a high proportion of these loans defaulting in the forthcoming
interest payment dates.  The agency also believes that these loans
are likely to cause the reserve fund to fully deplete on the next
interest payment date in February 2009.  In addition to this,
Fitch expects to see the first losses allocated to the principal
deficiency ledger of the class E notes.  Although the defaulted
loans have been written-off the long recovery time typically seen
for Italian loans means that the agency does not expect to see the
transaction benefit from recovery payments in the near future.  As
of November 2008, the two securitized pools contain loans with
high weighted average loan-to-value ratios: 72.11% for the Italian
portion and 100.78% for the German portion.  Recoveries on
defaulted loans are therefore expected to be limited, in
particular due to the lengthy foreclosure procedures in the
Italian portion of the pool and the high loan-to-value ratios in
the German portion of the pool.

At close the issuer entered into a EUR12-million liquidity
facility agreement with Deutsche Bank AG (rated 'AA-' (AA
minus)/'F1'/Outlook: Stable).  According to this agreement, in
case liquidity shortfalls arise, and the reserve fund is fully
depleted, the issuer is entitled to make draws to cover senior
expenses and interest payments on classes A to E, but only to a
limited amount.  As soon as the PDL balances of these notes reach
a certain percentage of the outstanding balance of the notes, the
liquidity facility may no longer be used to cover interest
payments due on these notes and interest is deferred to a later
date.  Given the speed at which defaulted loans have been realized
in this transaction, Fitch believes that these amounts may be
reached in the course of 2009.

The transaction remains on Rating Watch Negative due to the
deteriorating performance of the two pools.  Fitch expects to
resolve the RWN following a further analysis of the transaction.
Further rating actions will be taken as deemed necessary.


GAWA GEBAUDETECHNIK: Claims Registration Period Ends Nov. 19
------------------------------------------------------------
Creditors of Gawa Gebaudetechnik GmbH have until Nov. 19, 2008, to
register their claims with court-appointed insolvency manager Rolf
Otto Neukirchen.

Creditors and other interested parties are encouraged to attend
the meeting at 1:00 p.m. on Dec. 3, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Essen
         Meeting Hall 293
         Second Floor
         Zweigertstr. 52
         45130 Essen
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Rolf Otto Neukirchen
         Zweigertstr. 28-30
         45130 Essen
         Germany

The District Court of Essen opened bankruptcy proceedings against
Gawa Gebaudetechnik GmbH on Oct. 1, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Gawa Gebaudetechnik GmbH
         Reuenberg 50
         45357 Essen
         Germany

         Attn: Juergen Rohr, Manager
         Blittersdorfweg 37
         45307 Essen
         Germany


HEIDELBERGCEMENT AG: Credit Default Swaps Hit Record High
---------------------------------------------------------
Citing traders of credit-default swaps, Abigail Moses at Bloomberg
News reports that the cost of protecting bonds sold by
HeidelbergCement AG rose to a record on Friday, November 7.

Bloomberg relates that according to CMA Datavision prices, credit-
default swaps linked to HeidelbergCement rose 140 basis points to
1,300 at 9:30 a.m. in London Friday last week.

A basis point on a credit-default swap contract protecting
EUR10 million (US$12.8 million) of debt from default for five
years is equivalent to EUR1,000 a year, Bloomberg notes.

                     About HeidelbergCement

Based in Heidelberg, Germany, HeidelbergCement AG --
http://www.heidelbergcement.com/-- is a global producer of
cement, concrete and building materials.  The company's core
activities include the production and distribution of cement and
aggregates, the two raw materials for concrete.  It is also
engaged in in the provision of such products as ready-mixed
concrete, as well as concrete products and elements.  In 2007, the
company took over Hanson Group.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on Oct. 28,
2008, Standard & Poor's Ratings Services lowered its long- and
short-term corporate credit ratings to 'BB+/B' from 'BBB-/A-3' on
Germany-based cement producer HeidelbergCement AG (HC).   At the
same time, S&P placed all the ratings on CreditWatch with negative
implications.

On Oct. 27, 2008, the TCR-Europe reported that Moody's Investors
Service downgraded HeidelbergCement's (HC) long-term ratings
to Ba1 and the short term rating from P-3 to NP.  The outlook for
the ratings is negative.  In accordance with its established
practices, Moody's concurrently assigned a Ba1 Corporate Family
Rating to HC and expects to withdraw the long- term issuer rating
shortly.  The ratings of HC's EMTN program and outstanding and
guaranteed bonds are lowered to Ba1.


PFRIEM BETEILIGUNGS: Claims Registration Period Ends Nov. 18
------------------------------------------------------------
Creditors of Pfriem Beteiligungs- und Verwaltungs GmbH have until
Nov. 18, 2008, to register their claims with court-appointed
insolvency manager Frank Hanselmann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:10 a.m. on Nov. 27, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Schweinfurt
         Meeting Hall 22
         Eingang Friedenstr. 2
         Schweinfurt
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Frank Hanselmann
         Heinestrasse 7 b
         97070 Wuerzburg
         Germany
         Tel: 0931/359800
         Fax: 0931/3598050

The District Court of Schweinfurt opened bankruptcy proceedings
against Pfriem Beteiligungs- und Verwaltungs GmbH on Oct. 13,
2008.  Consequently, all pending proceedings against the company
have been automatically stayed.

The Debtor can be reached at:

         Pfriem Beteiligungs- und Verwaltungs GmbH
         Carl-Benz-Str. 13
         97424 Schweinfurt
         Germany


SCHMITZHAUS GMBH: Claims Registration Period Ends November 18
-------------------------------------------------------------
Creditors of Schmitzhaus GmbH have until Nov. 18, 2008, to
register their claims with court-appointed insolvency manager
Manfred Vellmer.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Dec. 9, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court Muenster
         Meeting Hall 119 B
         Gerichtsstr. 2-6
         48149 Muenster
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Manfred Vellmer
         Adalbertstr. 8
         48565 Steinfurt
         Germany
         Tel: 02552/638710
         Fax: +4925526387111

The District Court of Muenster opened bankruptcy proceedings
against Schmitzhaus GmbH on Sept. 23, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Schmitzhaus GmbH
         Kleine Schweiz 28 a
         48282 Emsdetten
         Germany

         Attn: Martin Theodor Schmitz, Manger
         Wegener Strasse 3
         48282 Emsdetten
         Germany


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CRH PLC: Expects Full Year Percentage Decline in Profit
-------------------------------------------------------
CRH plc yesterday issued an interim management statement in
accordance with the reporting requirements of the EU Transparency
Directive.

With the announcement on August 26, 2008 of CRH's first half
results, the company indicated its expectation that the percentage
decline in full year profit before tax would be broadly similar to
the 10% decline reported for the first half.  Since then,
financial markets have been impacted by an unprecedented series of
events which have contributed to an increasingly cautious business
climate across the world.  The company said this change in
sentiment has been most marked in Europe, which had previously
been only moderately affected by the fall-out from the sub-prime
crisis in the United States, resulting in weaker than anticipated
September/October trading in a number of European markets.  In
contrast overall trading in the company's American activities has,
despite the increased financial market turmoil, evolved broadly
along the lines anticipated in its August outlook, while the US$
has strengthened significantly.

Against this backdrop the company now expects to report a full
year percentage decline in profit before tax in the low to mid-
teens.  It expects a lesser reduction in earnings per share as a
result of share buyback and the lower expected full year
percentage tax charge which was noted in its August announcement.

                      Europe Materials

Construction growth in Poland and Ukraine, which more than
compensated for declines in the Irish and Spanish markets in the
first half of the year, has slowed over recent months due to a
combination of economic and political factors, although
profitability in the third quarter exceeded 2007.  This, together
with generally weaker trading patterns in other markets, is
expected to result in only modest profit progress for the second
half with full year operating profit now anticipated to show a
high single digit percentage increase on the 2007 outturn of
EUR586 million.

                       Europe Products

The slower trading patterns evident across the company's Europe
Products operations in the latter part of the second quarter have
intensified in recent months with negative economic newsflow.  In
addition, increasing stress in the UK housing market has
necessitated further capacity cuts and cost restructuring in the
company's UK clay business beyond what it previously anticipated.
Against this backdrop, operating profit is now expected to be
approximately 25% behind the 2007 outcome of EUR308 million.

                  Europe Distribution

Profitability in the company's DIY operations in the Benelux which
had been adversely impacted by weakening consumer confidence in
the first half of the year has proved more robust over recent
months as a result of strong management action. However, trading
across its merchanting operations which had a generally good first
half has weakened with the economic climate.  Full year operating
profit is now projected to show a mid to high single digit
percentage decline on the 2007 outcome of EUR212 million.

                    Europe Overall

Overall for Europe, with a slowing dynamic in central and eastern
countries and lower 2008 growth expectations for most western
European economies, the company now expects that operating profit
will show a low-single-digit percentage decline compared with last
year's EUR1.106 billion.

                   Americas Materials

Although the division experienced somewhat unsettled weather
conditions in the very important September/October trading period,
it continues to deliver a robust performance in offsetting the
impact of higher input costs through targeted cost reduction
measures and strong price increases, particularly for asphalt.  As
in the first half, these price increases are contributing to like-
for-like volume declines against the backdrop of modestly higher
highway budgets, and the company expects that the full year
outturn is likely to show a mid-teen percentage decline on the
2007 operating profit outcome of US$781 million.

                   Americas Products

The negative economic environment of recent months is feeding
through to some sectors of non-residential demand and impacting
the company's APG and Precast operations to a somewhat greater
extent than previously anticipated.  While the company's Glass,
MMI and South American operations have continued to perform well,
it now expects a full year operating profit decline of the order
of 20% on the 2007 outcome of US$466 million.

                 Americas Distribution

Trading performance in this business continues to exceed
expectations with effective management of pricing, sales and
overhead delivering strongly.  Against this backdrop, and with
contributions from AMS, which was acquired in November 2007, the
company anticipates that full year operating profit will show an
increase of approximately 30% compared with the US$96 million
reported for 2007.

                    Americas Overall

Overall for the Americas the company expects a mid-teen percentage
decline in full year US$ operating profit compared with last
year's US$1.343 billion.  However, with a more favorable projected
full-year 2008 US$/euro exchange rate of 1.47*, previously 1.51
(2007: 1.3705), the company continues to expect a full year
operating profit decline in euro terms of approximately 20% (2007:
EUR0.980 billion).

                   Disposals/Associates

The company continues to expect that full year profit on disposals
of fixed assets will be at least similar to last year (EUR57
million).  Its share of associates' profit after tax is also
expected to be in line with 2007 (EUR64 million).

                       Development

On the development front a total of approximately EUR1 billion has
been invested to date in acquisitions and investments.  The
completion of the EUR0.2 billion Yatai investment in China,
announced in January, and the EUR0.4 billion Pavestone acquisition
in the United States, announced in March, continues to be
dependent on various regulatory approvals.  With a challenging
trading backdrop for many of the company's businesses,
management's emphasis is firmly concentrated on operational
delivery and as a result development activity continues to be
limited to acquisition opportunities that offer compelling value
and exceptional strategic fit.

This emphasis is also reflected in capital expenditure which has
and is being adjusted across the Group to reflect the reduced
demand environment.  Despite significant additional expenditure on
completion of the new cement plants in Ireland and the United
States, the company expects that 2008 capital expenditure will be
held at the 2007 level of EUR1 billion.  While it continues to
support the essential needs of its businesses, 2009 capital
expenditure at approximately EUR750 million based on current
exchange rates is expected to be lower than depreciation.

* Based on year to date US$/euro average of 1.50 and a projected
rate of 1.28 for the remainder of 2008.  The guidance provided in
the company's Interim Statement of August 26 incorporated a
projected 2008 rate of 1.51.

                           Finance

Net finance cost for 2008 based on current projected average
exchange rates is expected to show a low to mid-teen percentage
increase on 2007's EUR303 million.  EBITDA/net interest cover for
the year is expected to remain strong at approximately 7.5 times.

To date in 2008 CRH has raised a total of EUR0.8 billion of long-
term funding in international bond markets and has arranged EUR0.7
billion of bank funding, primarily through the establishment of
new facilities.  The Group is close to completing the renewal and
extension of EUR1.5 billion of bank facilities with maturities in
2009.  This renewal combined with the Group's traditional strong
cash flow profile, enhanced by an intensified focus on cash
generation, will leave CRH well positioned in terms of its debt
facilities and maturity profile.

                      Share Buyback

In light of the stresses in financial markets, to maintain maximum
financial flexibility the share repurchase program announced on
January 3, 2008, which was limited to a maximum of 5% of the 547
million Ordinary shares in issue at December 2007, has been
terminated.  A total of 18.2 million shares were repurchased,
equivalent to 3.3% of Ordinary Shares in issue at year end 2007,
at an average price of EUR22.30 per share.

                         Summary

Since early 2007 the company said it has progressively implemented
significant cost reduction measures across its businesses and this
intense emphasis on operational efficiency and commercial delivery
is continuing with further extensive measures being implemented.
While the outlook for 2009 is challenging given the growing impact
of ongoing turmoil in financial markets on the broader world
economy, there are some positives with declining energy costs,
world-wide interest rate reductions, a potential US infrastructure
stimulus package and translation benefits of a stronger US$.
Against this background, CRH's geographic, sectoral and product
balance continues to underpin performance and cash flow.  The
company disclosed its attention and actions are resolutely focused
on ensuring that its businesses are strongly positioned to cope
with whatever circumstances may evolve and on further
strengthening its existing financial flexibility.

CRH will issue its full year 2008 trading update statement on
Tuesday, January 6, 2009.

Headquartered in Dublin, Ireland, CRH plc -- http://www.crh.ie/--
has operations in 34 countries, employing approximately 92,000
people at over 3,500 locations.  Its operations focus on three
closely related core businesses: Primary materials, Value-added
building products, Specialist building materials distribution.
CRH is listed on the Irish and London Stock Exchanges and through
its ADRs on the New York Stock Exchange.


DECO 7: S&P Downgrades Rating on Class H Notes to 'B+'
------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'B+' from 'BB' and
kept on CreditWatch negative its rating on the class H notes
issued by Deco 7 =96 Pan Europe 2 PLC.  S&P's ratings on the other
classes of notes remain unaffected.

On Aug. 8, S&P put the rating on class H notes on CreditWatch
negative because of the acceleration of the Karstadt Kompakt loan
on Aug. 1 and the insolvency of the main tenant, Hertie GmbH & Co
KG.  The Karstadt Kompakt loan is the largest remaining loan in
the transaction, representing 34.8% of the total outstanding loan
balance.

Although the July payment default was subsequently cured in
September, S&P understands that rent was not paid by the tenant
for the past five months.  However, sufficient funds were
available to meet debt obligations in full on the October interest
payment date, Oct. 20.  In case of further lack of rental income,
S&P expect liquidity to be available to meet timely note payments.

S&P understands that the servicer is in the process of
implementing an accelerated out-of-court asset sale program for
the collateral (61 assets in total), with a view to repaying the
Karstadt Kompakt loan by the end of August 2009.

For S&P's current ratings S&P has considered the implications of
the recent nonpayment, as well as the planned asset sale program.
For example, S&P has examined a range of scenarios including
stressed vacant possession value assumptions and the likelihood of
the remaining assets being sold individually at market value.
Having recently visited a number of the properties, S&P considers
that a number of assets in the portfolio are located in favorable
microlocations that could benefit from a restructuring and from
letting to multiple retailers.

However, S&P is concerned that any asset sale program in the
current environment will be challenging given the difficult
lending market and the low demand from third-party investors for
retail assets in general and department stores in Germany in
particular.  In addition, the potential sale prices for retail
assets that have an insolvent in-place principal tenant could be
affected.

In conclusion, because of a number of complex factors=97a loan
structure that involves various jurisdictions, the insolvency of
the parent company Dawnay Day Group and the principal tenant, and
the challenges of a multi-jurisdictional and multi-layered workout
process=97we have concluded that the probability of losses occurring
on this loan has increased.  S&P considers that the risks for this
loan are no longer commensurate with the rating on the class H
notes, and therefore S&P has lowered the rating.

S&P will continue to closely monitor the workout process of this
loan.


HALYARD CDO: Asset Liquidation Spurs S&P to Cut Ratings to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D' from 'CC' and
then withdrew its ratings on the class A to E notes issued by
Halyard CDO I PLC.

The ratings defaults are in direct response to the liquidation of
the underlying assets in the deal, which has led to all available
proceeds being distributed to noteholders.

The available funds were insufficient to redeem the class A to E
notes in this transaction at par plus accrued interest.

                          Ratings List

                        Halyard CDO I PLC
        US$217.5 Million Senior Secured Floating-Rate Notes

                        Ratings Lowered

                                 Rating
                                 ------
                Class       To            From
                -----       --            ----
                A           D             CC
                            NR            D

                B           D             CC
                            NR            D

                C           D             CC
                            NR            D

                D           D             CC
                            NR            D

                E           D             CC
                            NR            D

                          NR =97 Not rated.


PALMER SQUARE: Credit Deterioration Cues Moody's to Slash Ratings
-----------------------------------------------------------------
Moody's Investors Service downgraded its ratings of five classes
of notes issued by Palmer Square plc and left two classes on
review for further possible downgrade.  Moody's have also assigned
a rating of A3 on the Class A1-A Exchange Offer notes, and left
this on review for downgrade as well.

These rating actions are a response to credit deterioration in the
underlying portfolio.  The transaction is a cashflow CDO
referencing, among other assets, Moody's subprime RMBS and ABS
CDO. Currently 4.4% of portfolio by volume is rated Caa1 or below.

Moody's said on Sept. 18, 2008 that it is revising its expected
loss assumptions which are used for the surveillance of ratings of
ABS CDOs holding subprime RMBS, specifically of the second half
2005 -- first half 2007 vintages.  Moody's stated that for
purposes of monitoring its ratings of ABS CDOs with exposure to
second half 2005 -- first half 2007 subprime RMBS, it will rely on
certain projections of the lifetime average cumulative losses for
vintages of RMBS set forth in a recent Moody's report.

Moody's explained that it will utilize the range of loss
projections set forth in the report based on deal performance and
quarterly vintage to modify its prior assumptions of the expected
loss inputs when monitoring ABS CDO ratings.

These rating actions are:

                        Rating assignment

Palmer Square plc:

(1) US$878,150,000 Class A1-A Exchange Offer Floating Rate Notes
    due 2045 (currently US$869,323,193.43 outstanding due to
    amortization)

    -- Current Rating: A3, on review for downgrade

                        Ratings downgrades

Palmer Square plc:

(1) US$667,500,000 Class A1-A Floating Rate Notes due 2045
    (currently US$231,994,409.13 outstanding due to issuance of
    the Class A1-A Exchange Offer notes and amortization)

    -- Current Rating: A3, on review for downgrade
    -- Prior Rating: Aaa
    -- Prior Rating Action Date: April 4, 2005

(2) US$45,000,000 Class A2-A Step-Up Floating Rate Notes due 2045
    (currently US$75,000,000 outstanding due to further issuance)

    -- Current Rating: Caa3, on review for downgrade
    -- Prior Rating: Aaa, on review for downgrade
    -- Prior Rating Action Date: May 13, 2008

(3) US$6,750,000 Class B-1 Deferrable Floating Rate Notes due
    2045 (currently US$11,250,000 outstanding due to further
    issuance)

    -- Current Rating: Ca
    -- Prior Rating: Baa1, on review for downgrade
    -- Prior Rating Action Date: May 13, 2008

(4) US$15,000,000 Class C-1 Deferrable Floating Rate Notes due
    2045 (currently US$25,372,610 outstanding due to further
    issuance and deferred interest)

    -- Current Rating: C
    -- Prior Rating: Ba2, on review for downgrade
    -- Prior Rating Action Date: May 13, 2008

(5) US$7,500,000 Class D-1 Deferrable Floating Rate Notes due
    2045 (currently US$12,741,600 outstanding due to further
    issuance and deferred interest)

    -- Current Rating: C
    -- Prior Rating: Caa1, on review for downgrade
    -- Prior Rating Action Date: May 13, 2008


WATERFORD WEDGEWOOD: Moody's Junks Senior Subordinated Rating
-------------------------------------------------------------
Moody's Investors Service affirmed Waterford Wedgewood plc
Corporate Family Rating of Caa1 and has downgraded the Probability
of Default Rating to Caa2 from Caa1 and the senior subordinated
rating on the EUR166 million notes due in 2010 to Caa3 from Caa2.
The outlook on the rating is negative.

"Moody's acknowledges the strong commitment towards the company by
main shareholders via continuous capital injections and the
ongoing restructuring efforts aimed at reducing the high costs
burden and at sustaining the current debt structure.
Nevertheless, the lowering of the PDR reflects the heightened
execution risks associated with the restructuring program due to
the current softness in consumer spending and the expectation that
operating performances are likely to remain subdued increasing the
probability of default in light of the approaching significant
debt maturities in 2010", said Paolo Leschiutta, Vice President at
Moody's and lead analyst for Wedgwood.  "In addition, in Moody's
view the implementation of the restructuring program depends upon
events outside of the company's control, including the additional
shares placing, planned by year end, and the potential disposal of
Rosenthal, which successful conclusion are currently challenged by
the difficult economic environment," continued Mr. Leschiutta.

The affirmation of the CFR reflects Moody's expectation that
potential recovery rate at family level in case of default might
be above the standard 50%, in recognition also of the fact that
brands value is not entirely reflected on the company's balance
sheet.  In this context Moody's notes that revenues have remained
relatively resilient in recent years, indicating modest erosion in
brand perception, while operating performances have been under
significant pressure due to the unsustainable cost structure.

Despite the continued support from shareholders, that recently
materialized with an additional funds injection of EUR79.6 million
completed in October 2008, the liquidity profile of the group
remains inadequate, with limited availability under the revolving
facility.  Although Moody's recognizes that working capital cycle
should be more favorable to the company in the coming months as
the company starts to receive cash towards the end of the calendar
year, Moody's remains concerned about the high cash burning rate
of the company as fixed costs and interest burden continue to
erode restored liquidity.  The company has no short-term debt
obligations, however debt maturities concentrated in 2010 will
heighten refinancing risk in eighteen months' time.

The negative outlook reflects Moody's view that the company will
continue to face challenges in achieving the full benefits of the
restructuring program and in strengthening profitability, which is
required to reduce leverage from its current elevated levels.  A
stabilization of the company's rating outlook could be triggered
by a return to profitability, resulting in positive cash flow from
operations following a successful implementation of the
restructuring program and a recovery in the ceramics markets.

The CFR rating could be downgraded in the event of a significant
delay in the restructuring program or if the liquidity profile
deteriorates.  The ratings could also be downgraded in the case of
a deterioration in Moody's perception of potential recovery rate.

Ratings affirmed:

  -- Waterford Wedgwood plc Corporate Family Rating of Caa1

Ratings downgraded:

  -- Waterford Wedgwood plc Probability of Default Rating lowered
     to Caa2 from Caa1;

  -- Senior subordinated rating on the EUR166 million notes due
     in 2010 to Caa3 (LGD4, 61%) from Caa2.

The outlook is negative.

Based in Waterford, Ireland, Waterford Wedgwood Plc is a global
manufacturer and distributor of luxury crystal and chinaware
products through the well-known brands of Waterford for its
crystal division and Wedgwood, Royal Doulton and Rosenthal for its
ceramics division.  At FYE March 2008, the company had four
production facilities around the world.  One is based in Ireland,
for crystal manufacturing.  The other three are ceramics
facilities, located in the UK (high automation products), Germany
(Rosenthal collections) and Indonesia (labour intensive products).


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K A Z A K H S T A N
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TRISTAN OIL: Fitch Affirms IDR and Senior Unsecured Rating at B+
----------------------------------------------------------------
Fitch Ratings has affirmed Tristan Oil Ltd.'s Long-term foreign
currency Issuer Default Rating and senior unsecured rating at 'B+'
and its Recovery rating at 'RR4'.  The Outlook for the Long-term
rating remains Negative.

The Negative Outlook reflects Fitch's concern that Tristan's
intensive capex requirements coupled with its exposure to volatile
oil and gas prices could put pressure on the company's credit
metrics especially if it pursues a more aggressive financial
policy.

The improved leverage (net leverage of 1x in H108 versus 2.2x in
2007) makes the group more comfortably positioned among its
Russian and international oil and gas peers with median net
leverage of 0.6x.  However, the de-leveraging that occurred in
H108 was driven by production expansion and favorable oil and gas
industry fundamentals.  As oil and gas output is expected to
remain relatively flat in 2009-2012, maintaining achieved leverage
ratios and their improvement in the future is a function of EBITDA
generation which in turn depends on oil and gas prices.
Therefore, if the company chooses to implement a more aggressive
financial policy it will adversely impact the group's credit
metrics in light of weakening oil prices.

The ratings reflect Tristan's position as one of the most
profitable (FY07 EBITDAR margin of 71.6%) companies among its oil
and gas peers.  Nevertheless, Fitch notes that Tristan compares
unfavorably with its counterparts based on coverage ratios.

The ratings factor in Tristan's ability to achieve production
targets as planned.  Due to the completion of a second gas
processing plant, the company's oil and gas production rose to
54,900 barrels of oil equivalent per day in H108 from 31,500 boepd
in 2007.

However, the ratings also take into account Tristan's limited
scale of operations, relatively low reserves-to-production ratio,
and lack of business diversification which makes the company
vulnerable to oil price movements.  In light of this, any cost
overruns or severe delays in implementing its capex program might
jeopardize its cash flow and overall credit metrics.

In 2006, Tristan issued senior secured notes due in 2012 and
provided a loan to two operating companies involved in oil and gas
exploration and production in western Kazakhstan, Kazpolmunay LLP
and Tolkynneftegaz LLP.  All three entities, Tristan, KPM, and
TNG, are 100%-owned (directly or indirectly) by Anatolie Stati, a
Moldovan entrepreneur.  Although Tristan categorises its notes as
senior secured due to the pledge of 100% of the capital stock of
Tristan, KPM and TNG, Fitch takes a conservative position
regarding the reliability of this collateral in a distressed
scenario and has therefore assigned them a senior unsecured
rating.


* Fitch Cuts Long-Term Foreign Currency Ratings on Four Companies
-----------------------------------------------------------------
Fitch Ratings has downgraded the Long-term foreign currency
ratings of three Kazakh energy companies and a railway group.  The
agency has simultaneously revised the foreign currency rating
Outlooks on three separate energy groups and affirmed their
ratings.  All the rating actions follow a sovereign downgrade of
Kazakhstan's Long-term foreign currency Issuer Default Rating to
'BBB-' (BBB minus) from 'BBB'.

Kazakhstan's Long-term local currency IDR has meanwhile been
downgraded to 'BBB' from 'BBB+'.  The sovereign downgrade reflects
concern that a weakening bank sector and the government's
intention to draw-down an oil fund, to support the banking system
and potentially the real economy, will jeopardize public finances.
The Outlooks on Kazakhstan's Long-term IDRs remain Negative.

Kazakh companies whose foreign currency ratings have been
downgraded are:

* Kazakhstan Temir Zholy

  -- Long-term foreign currency (FC) IDR: downgraded to 'BBB-'
     (BBB minus) from 'BBB'; Outlook remains Negative

  -- Senior unsecured rating: downgraded to 'BBB-' (BBB minus)
     from 'BBB'

KTZ's ratings are aligned with the sovereign's, given the 100%
state-owned railway company's strategic importance to Kazakhstan
due to the country's vast terrain, land-locked position and
underdeveloped road infrastructure.

* KazMunaiGaz National Company

  -- LT FC IDR: downgraded to 'BBB-' (BBB minus) from 'BBB';
     Outlook remains Negative

  -- LT local currency (LC) IDR: affirmed at 'BBB'; Outlook
     remains Negative

  -- Short-term (ST) FC IDR: affirmed at 'F3'

  -- Senior unsecured rating: downgraded to 'BBB-' (BBB minus)
     from 'BBB'

NC KMG's ratings are aligned with the sovereign's given that it
was established as a wholly state-owned enterprise to represent
the interests of the government in Kazakhstan's oil and gas
industry.

* Kazakhstan Electricity Grid Operating Company

  -- LT FC IDR: downgraded to 'BBB-' (BBB minus) from 'BBB';
     Outlook remains Negative

  -- LT LC IDR: downgraded to 'BBB' from 'BBB+'; Outlook remains
     Negative

  -- ST FC IDR: affirmed at 'F3'

KEGOC's ratings are aligned with the sovereign's given its 100%
state ownership and strong state support resulting from the
strategic nature of Kazakhstan's national transmission grid.

* Mangistau Electricity Distribution Network Company

  -- LT FC IDR: downgraded to 'BB' from 'BB+'; Outlook revised to
     Negative from Stable.

  -- FC senior unsecured rating: downgraded to 'BB' from 'BB+'

  -- ST FC IDR: affirmed at 'B'

  -- LC senior unsecured rating: affirmed at 'BB+'

  -- National LT rating: upgraded to 'AA-(minus)(kaz)' from
     'A+(kaz)', due to a recalibration of Fitch's National Kazakh
     scale; Outlook remains Stable

MEDNC's ratings are linked to the sovereign's, but notched down to
reflect that little indication has been given by MEDNC's ultimate
parent, Samruk, that it will provide timely financial assistance
in case of financial distress.  The company has a near-monopoly
position in electricity transmission and distribution in
Mangistau, one of Kazakhstan's strategic oil and gas regions.

Kazakh companies whose foreign currency rating Outlooks have been
revised and ratings affirmed are:

* JSC KazMunaiGas Exploration Production

  -- LT FC IDR: affirmed at 'BBB-' (BBB minus); Outlook revised
     to Negative from Stable. This rating Outlook is constrained
     by Kazakhstan's sovereign rating Outlook.

  -- LT LC IDR: affirmed at 'BBB-' (BBB minus); Outlook revised
     to Negative from Stable.

  -- ST FC IDR: affirmed at 'F3'

* JSC KazTransOil (KTO)

  -- LT FC IDR: affirmed at 'BBB-' (BBB minus); Outlook revised
     to Negative from Stable. This rating Outlook is constrained
     by Kazakhstan's sovereign rating Outlook.

  -- ST FC IDR: affirmed at 'F3'

Fitch rates NC KMG's subsidiaries (including KMG EP and KTO) on a
standalone basis, albeit with implicit state support via NC KMG
being incorporated into the ratings, as well as their inter-
dependencies.  Fitch believes that the current strong financial
profile of KMG EP and KTO will provide a cushion against the
cyclical downturn in the global oil and gas markets and economic
slowdown.

The ratings of other NC KMG's subsidiaries -- KazTransGas and JSC
Intergas Central Asia -- are unaffected.  They are:

* KazTransGas:

  -- LT FC IDR: 'BB'; Outlook Stable
  -- ST FC IDR: 'B'
  -- LT LC IDR: 'BB'; Outlook Stable

* JSC Intergas Central Asia:

  -- LT FC IDR: 'BB+'; Outlook Stable
  -- ST FC IDR: 'B'
  -- LT LC IDR: 'BB+'; Outlook Stable
  -- Senior unsecured rating: 'BB+'

* JSC National Atomic Company Kazatomprom

  -- LT FC IDR: affirmed at 'BBB-' (BBB minus); Outlook revised
     to Negative from Stable. This rating Outlook is constrained
     by Kazakhstan's sovereign rating Outlook.

  -- ST FC IDR: affirmed at 'F3'

Kazatomprom is Kazakhstan's national uranium operator.  In Fitch's
view, the company is well placed to withstand an economic slowdown
given its solid financial profile which is underpinned by its
position as one of the world's leading uranium producers.  A
resurgence of global nuclear activity should also help insulate
Kazatomprom.


* Fitch Downgrades LT Foreign Currency IDRs of Seven Kazakh Banks
-----------------------------------------------------------------
Fitch Ratings downgraded by one notch the Long-term foreign
currency Issuer Default Ratings of seven Kazakh financial
institutions, namely BTA Bank, Kazkommertsbank, Halyk Bank, ATF
Bank, Development Bank of Kazakhstan, Astana Finance and
KazAgroFinance.  The Outlook on these ratings remains Negative.
This follows the downgrade of the sovereign ratings.

At the same time, the agency has affirmed the ratings of three
other Kazakh banks: Alliance Bank, Bank Centercredit and
Temirbank.  The Outlook on Alliance remains Negative and that on
BCC remains Evolving.  The Outlook on Temir is revised to Negative
from Evolving.

Fitch has also downgraded by one notch the Long-term IDRs of
Moskommertsbank (the Russian subsidiary of KKB) and BTA Bank
(Russia) (an affiliate of BTA), with their Outlooks remaining
Negative.  The ratings of two other BTA affiliates - Bank BTA-
Kazan and BTA Bank (Georgia) - are affirmed, removed from Rating
Watch and assigned Negative Outlooks.

Finally, Fitch has downgraded by one notch the Individual ratings
of BTA and KKB and states that there is now also downward pressure
on Halyk's Individual rating.  Banks' Individual ratings reflect
their stand-alone financial strength without taking account of
potential external support.

The downgrades of the IDRs of six entities (BTA, KKB, Halyk, DBK,
AF and KAF) reflect the reduced ability of the Kazakh authorities
to provide support to these entities, following the sovereign
downgrade.  The Kazakh authorities' recently announced plans to
inject capital into BTA, KKB, Halyk and Alliance confirm Fitch's
long-held view of the very high propensity of the authorities to
support banks which they judge to be systemically important.
However, a two-notch differential between the ratings of the
sovereign and BTA/KKB/Halyk has been retained in light of the
large size of these banks, and in particular their foreign
currency liabilities, relative to the size of the resources and
foreign currency reserves of the sovereign, and other contingent
claims on these resources.

The affirmation of Alliance's ratings, and therefore the narrowing
of the notching between Alliance and the sovereign, reflects the
bank's inclusion in the authorities' capitalization plans and
confirmation thereby of its treatment as a systematically
important bank.  However, Alliance's IDR remains one notch below
those of BTA, KKB and Halyk in light of its considerably smaller
and declining market shares, which could potentially make it
somewhat less likely than the big three banks to receive support
in the future.

The downgrade of ATF reflects increased Kazakh transfer and
convertibility risks, as captured in the downgrade of the Country
Ceiling, which could limit ATF's ability to receive and utilize
support from its parent, Italy's Unicredit S.p.A. ('A+'/Negative).
The Negative Outlooks on ATF, BTA, KKB, Halyk, DBK, AF, KAF and
Alliance reflect those on the sovereign.

BCC's ratings, like those of Alliance, have been affirmed in light
of the authorities' treatment of mid-sized banks as systemically
important in its capitalisation plans.  BCC's ratings do not yet
receive any uplift as a result of potential support from Kookmin
Bank ('A+'/Negative) in light of the minority shareholding of the
latter and potential concerns about the ability of Korean banks to
provide support for foreign affiliates.  The Evolving Outlook on
BCC's Long-term IDR reflects the potential for the rating to go
down if the Kazakh sovereign is downgraded further and the
potential for it to go up as Kookmin moves towards consolidating a
majority stake in BCC.

Rating actions:

BTA Bank

  -- Long-term foreign currency IDR: downgraded to 'BB' from
     'BB+'; Outlook remains Negative

  -- Long-term local currency IDR: downgraded to 'BB' from 'BBB-'
     (BBB minus); Outlook remains Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Short-term local currency IDR: downgraded to 'B' from 'F3'

  -- Support rating: affirmed at '3'

  -- Individual rating: downgraded to 'D' from 'C/D'

  -- Support Rating Floor: revised to 'BB' from 'BB+'

  -- Senior unsecured debt: downgraded to 'BB' from 'BB+'

  -- Tier 1 perpetual preferred securities: downgraded to 'B-'
     (B minus) from 'B+'

Kazkommertsbank

  -- Long-term foreign currency IDR: downgraded to 'BB' from
     'BB+'; Outlook remains Negative

  -- Long-term local currency IDR: downgraded to 'BB' from 'BBB-'
     (BBB minus); Outlook remains Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Short-term local currency IDR: downgraded to 'B' from 'F3'

  -- Support rating: affirmed at '3'

  -- Individual rating: downgraded to 'D' from 'C/D'

  -- Support Rating Floor: revised to 'BB' from 'BB+'

  -- Senior unsecured debt: downgraded to 'BB' from 'BB+'

  -- Subordinated debt: downgraded to 'BB-' (BB minus) from 'BB'

  -- Tier 1 perpetual subordinated notes: downgraded to 'B-'
     (B minus) from 'B+'

Halyk Bank of Kazakhstan

  -- Long-term foreign currency IDR: downgraded to 'BB' from
     'BB+'; Outlook remains Negative

  -- Long-term local currency IDR: downgraded to 'BB' from 'BBB-'
     (BBB minus); Outlook remains Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Short-term local currency IDR: downgraded to 'B' from 'F3'

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'C/D'

  -- Support Rating Floor: revised to 'BB' from 'BB+'

  -- Senior unsecured debt: downgraded to 'BB' from 'BB+'

Alliance Bank

  -- Long-term foreign currency IDR: affirmed at 'BB-'
     (BB minus); Outlook remains Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Support rating: affirmed at '3'

  -- Individual rating: affirmed at 'D/E'

  -- Support Rating Floor: affirmed at 'BB-' (BB minus)

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- RUB-denominated senior unsecured debt: affirmed at 'A+(rus)'

ATF Bank

  -- Long-term foreign currency IDR: downgraded to 'BBB' from
     'BBB+'; Outlook remains Negative

  -- Short-term foreign currency IDR: downgraded to 'F3' from
     'F2'

  -- Support rating: affirmed at '2'

  -- Individual rating: affirmed at 'D'

  -- Senior unsecured debt: downgraded to 'BBB' from 'BBB+'

Bank Centercredit

  -- Long-term foreign currency IDR: affirmed at 'BB-'
     (BB minus); Outlook remains Evolving

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Support rating: affirmed at '3',

  -- Individual rating: affirmed at 'D'

  -- Support Rating Floor: affirmed at 'BB-' (BB minus)

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

Development Bank of Kazakhstan

  -- Long-term foreign currency IDR: downgraded to 'BBB-'
     (BBB minus) from 'BBB'; Outlook remains Negative

  -- Long-term local currency IDR: downgraded to 'BBB' from
     'BBB+'; Outlook remains Negative

  -- Short-term foreign currency IDR: affirmed at 'F3'

  -- Short-term local currency IDR: downgraded to 'F3' from 'F2'

  -- Support rating: affirmed at '2',

  -- Support Rating Floor: downgraded to 'BBB-' (BBB minus) from
     'BBB'

  -- Senior unsecured debt: downgraded to 'BBB-' (BBB minus) from
     'BBB'

Astana Finance

  -- Long-term foreign currency IDR: downgraded to 'BB' from
     'BB+'; Outlook remains Negative

  -- Long-term local currency IDR: downgraded to 'BB' from 'BB+';
     Outlook changed to Negative from Stable

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- National Long-term rating: affirmed at 'A+(kaz)'; Outlook
     remains Stable

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '3'

  -- Support Rating Floor: downgraded to 'BB' from 'BB+'

  -- Senior unsecured debt: downgraded to 'BB' from 'BB+'

KazAgroFinance

  -- Long-term foreign currency IDR: downgraded to 'BB+' from
     'BBB-' (BBB minus); Outlook remains Negative

  -- Long-term local currency IDR: downgraded to 'BBB-'
     (BBB minus) from 'BBB'; Outlook remains Negative

  -- Short-term foreign currency IDR: downgraded to 'B' from 'F3'

  -- National Long-term rating: affirmed at 'AA(kaz)'; Outlook
     remains Stable

  -- Support rating: downgraded to '3' from '2'

  -- Support Rating Floor: downgraded to 'BB+' from 'BBB-'
     (BBB minus)

Temirbank

  -- Long-term foreign currency IDR: affirmed at 'BB-'
     (BB minus); Outlook changed to Negative from Evolving

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Support rating: affirmed at '3'

  -- Support Rating Floor: assigned at 'BB-' (BB minus)

  -- Individual rating: affirmed at: 'D/E'

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

Moskommertsbank

  -- Long-term foreign currency IDR: downgraded to 'B' from 'B+';
     Outlook remains Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- National Long-term rating: downgraded to 'BBB-(minus)(rus)'
     from 'A- (minus)(rus)'; Outlook remains Negative

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '4'

BTA Bank (Russia)

  -- Long-term foreign currency IDR: downgraded to 'B' from 'B+';
     Outlook remains Negative

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- National Long-term rating: downgraded to 'BBB-(minus)(rus)'
     from 'A-(minus)(rus)'; Outlook remains Negative

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '4'

  -- Senior unsecured debt: downgraded to 'B' from 'B+'

Bank BTA-Kazan

  -- Long-term foreign currency IDR: affirmed at 'B'; Positive
     Watch removed, Negative Outlook assigned

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- National Long-term rating: downgraded to 'BBB-(minus)(rus)'
     from 'BBB+(rus)'; Positive Watch removed, Negative Outlook
     assigned

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '4'

BTA Bank (Georgia)

  -- Long-term foreign currency IDR: affirmed at 'B'; Evolving
     Watch removed, Negative Outlook assigned

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Individual rating: affirmed at 'D/E'

  -- Support rating: affirmed at '4'


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K Y R G Y Z S T A N
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INFO-LINE LLC: Creditors Must File Claims by November 28
--------------------------------------------------------
LLC Info-Line has declared insolvency.  Creditors have until
Nov. 28, 2008, to submit written proofs of claims.

Inquiries can be addressed to (0-550) 43-70-27.


MEDIA PRO: Creditors Must File Claims by November 28
----------------------------------------------------
LLC Media Pro has declared insolvency.  Creditors have until
Nov. 28, 2008, to submit written proofs of claims to:

         LLC Media Pro
         Kurmanjan datka Str. 232
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 51-37-80


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L A T V I A
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PAREX BANK: Latvian Government Takes 51% Stake in Bank
------------------------------------------------------
Latvia's Parex Bank has sold 51% of its shares to the Baltic
nation's government, with existing shareholders having the rights
to buy out the stakes.

Parex confirmed in a press statement that within the frameworks of
the stabilization package, it received the state guarantees for
its liabilities enabling the bank to preserve the liquidity at a
sustainable level, and obviating possible doubts on its
capabilities of raising funds in the international debt markets.

"We fully recognize the correctness both of our and the State
actions.  The current cooperation model will help both our
clients, shareholders and the management.  Our clients, who have
entrusted their funds to the Bank, will support the Government's
actions, as Parex banka has been repeatedly demonstrating the
timeliness of its actions for over the 20 years of its existence,"
the Chairman of Parex banka's Council Guntars Grinbergs said.

According to the Wall Street Journal, around half of Parex's
deposits, which totaled about US$3.5 billion at the end of
September, are from non-residents.  The Journal relates Parex
officials already reported more than 5% decrease in the bank's
deposits in October as Latvia's banking sector feels the effects
of Russia's economic woes.  Majority of the country's deposits are
from Russian clients, the Journal says.

The Journal discloses that in recent weeks, depositors have taken
fright amid concern over Parex's ability to repay two syndicated
loans from a group of European and Japanese banks.  The Journal
notes Parex has a EUR275 million (US$351 million) loan due in
February and a EUR500 million loan due in June.


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P O L A N D
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GDYNIA: EU Commission Agrees on Terms for Recovery of State Aid
---------------------------------------------------------------
The European Commission has concluded, following four years of
investigation, that state aid granted to Gdynia shipyard and
Szczecin shipyard gives rise to disproportionate distortions of
competition within the Single Market, in breach of EC Treaty state
aid rules, and must be repaid.  The Commission has simultaneously
agreed to accept commitments from Poland for the implementation of
the decisions in a way that will quickly create opportunities for
viable and sustainable economic activities at the Gdynia and
Szczecin sites and so maximize the number of sustainable jobs
there.  In particular, the Polish authorities have committed to
sell the yards' assets through open, transparent, non-
discriminatory and unconditional tenders and subsequently
liquidate the Gdynia and Szczecin shipyard companies, claiming the
state aid back through this process.  As a result, companies
acquiring the assets will not be liable to repay the illegal
subsidies, even if they choose to continue shipbuilding.  To help
any workers that are made redundant, the Commission has offered
assistance in devising flanking measures under existing EU
programs (European Social Fund or European Globalisation
Adjustment Fund).

Commission President Jose Manuel Barroso said "We have worked long
and hard to find a solution that is fair and sustainable. For the
workers and businesses in Poland, but also for people working and
doing business elsewhere.  The solution that we have agreed with
the Polish authorities offers the best possible prospects for
future jobs and viable activities at these historic sites."

Competition Commissioner Neelie Kroes commented: "I am confident
that this solution will maximize opportunities for viable economic
activity to continue at these historic sites, with good prospects
for sustainable jobs there, while putting an end to the
disproportionate distortion of competition caused by the huge
subsidies received by these shipyards in recent years.  This
solution has been made possible by the very positive cooperation
we have enjoyed with the Polish Government in recent weeks.  I can
well imagine that the buyers of certain assets would want to
engage in shipbuilding at the sites, and that would not be a
problem for the Commission because there would be no new subsidies
and they would buy the assets at a market price.  And if those
acquiring the assets want to pursue other economic activities than
shipbuilding, they must be allowed to. What matters most is the
break with the past, viable economic activity at these sites and
sustainable jobs."

Since 2002, Gdynia Shipyard benefited from various aid measures
(in particular capital injections, loans and tax write-offs)
amounting to EUR700 million and from production guarantees of
EUR916 million (both in nominal value).  Szczecin Shipyard
received aid of EUR1 billion as well as production guarantees of
EUR697 million (again, in nominal value).  The decisions require
that Poland recovers from the yards all state aid unlawfully
granted since May 2004.

The two yards have been in difficulties since the 1990s.  In April
2004, Poland notified restructuring aid for the two yards and the
Commission opened formal investigations in June 2005. Poland
submitted restructuring plans for both yards in September 2005 and
September 2006, both with substantial delays.  None of the plans
would have ensured long-term viability to the yards and the
restructuring would have been financed entirely by state aid.

In December 2006, Poland decided to privatize the shipyards, a
process, delayed several times, that eventually progressed in the
course of the year and lead to potential investors submitting
restructuring plans for the two yards on September 12, 2008.  The
plans represented an improvement in comparison to previous
versions.  However, despite further large amounts of state aid and
substantial job losses foreseen in these plans, the yards would
still not have been commercially viable.  The Commission therefore
concluded that the subsidies received by the Gdynia and Szczecin
shipyards did not comply with the guidelines on rescue and
restructuring aid but rather constituted illegal operating aid.
The Commission decision requires repayment of the illegal aid.

                         Asset Sale

In order to reduce the potential negative social and regional
effects of these decisions, the Commission agreed with Poland on
specific modalities of implementation, along the model developed
in the recent Olympic Airways decision.  Poland has submitted that
it needs to take legislative action to implement the sale of
assets.

Poland committed that the recovery will be implemented by way of a
sale of assets or small bundles of assets in an open, transparent,
non-discriminatory and unconditional tender.  The proceeds from
the sale of the assets will be used to repay creditors, including
the recovery claim of the state related to the unlawful aid.  The
existing companies owning the yards, with the remaining assets and
liabilities, will be liquidated.

The assets have to be sold at market price to the highest bidder.
The tender must be non-discriminatory, ensuring access to all
profiles of potential buyers, irrespective of the purpose of their
investment.  No conditions can be attached to the tender (for
example, a requirement that a bidder purchases all the assets of a
given yard).  The sole award criterion for the selection of the
winning bid will be revenue maximization for the benefit of the
yard's creditors.  An automatic transfer of employees to the new
economic activity cannot be imposed.  Any write-off or repayment
of public or private liabilities, financed by the State, would
amount to additional state aid and could not be accepted.  All
creditors and clients must be treated in the same way as they
would be in the framework of insolvency procedures.  The sale must
be conducted by an independent sales administrator under the close
supervision of the creditors ensuring that it is conducted on
market terms.  In addition, Poland and the Commission will appoint
jointly a monitoring trustee with the specific task to verify that
the sale and the recovery of the aid take place in full compliance
with the decisions.  Poland committed to complete the sale by the
end of May 2009.

Poland was assured in a letter from Commissioner Kroes that,
provided that these conditions are respected, this sale would not
be considered to involve new aid to buyer(s) of the yards' assets
and the assets could be transferred to the buyer(s) free of any
liability concerning the reimbursement of unlawful state aid.  The
buyers of the assets could therefore restart economic operations
without the burden of the past and in the absence of any
limitation concerning their future activity.

                   About Stocznia Gdynia

Located in Port of Gdynia, Poland, Stocznia Gdynia S.A. --
http://www.stocznia.gdynia.pl/-- engages in the construction of
ships, partly equipped hulls, ship's sections, superstructures,
and steel constructions.  The company also engages in the
production and distribution of technical gases, hot water, and
steam, as well as research and development works in technical
studies.


SZCZECIN: EU Commission Agrees on Terms for Recovery of State Aid
-----------------------------------------------------------------
The European Commission has concluded, following four years of
investigation, that state aid granted to Gdynia shipyard and
Szczecin shipyard gives rise to disproportionate distortions of
competition within the Single Market, in breach of EC Treaty state
aid rules, and must be repaid.  The Commission has simultaneously
agreed to accept commitments from Poland for the implementation of
the decisions in a way that will quickly create opportunities for
viable and sustainable economic activities at the Gdynia and
Szczecin sites and so maximize the number of sustainable jobs
there.  In particular, the Polish authorities have committed to
sell the yards' assets through open, transparent, non-
discriminatory and unconditional tenders and subsequently
liquidate the Gdynia and Szczecin shipyard companies, claiming the
state aid back through this process.  As a result, companies
acquiring the assets will not be liable to repay the illegal
subsidies, even if they choose to continue shipbuilding.  To help
any workers that are made redundant, the Commission has offered
assistance in devising flanking measures under existing EU
programs (European Social Fund or European Globalisation
Adjustment Fund).

Commission President Jose Manuel Barroso said "We have worked long
and hard to find a solution that is fair and sustainable. For the
workers and businesses in Poland, but also for people working and
doing business elsewhere.  The solution that we have agreed with
the Polish authorities offers the best possible prospects for
future jobs and viable activities at these historic sites."

Competition Commissioner Neelie Kroes commented: "I am confident
that this solution will maximize opportunities for viable economic
activity to continue at these historic sites, with good prospects
for sustainable jobs there, while putting an end to the
disproportionate distortion of competition caused by the huge
subsidies received by these shipyards in recent years.  This
solution has been made possible by the very positive cooperation
we have enjoyed with the Polish Government in recent weeks.  I can
well imagine that the buyers of certain assets would want to
engage in shipbuilding at the sites, and that would not be a
problem for the Commission because there would be no new subsidies
and they would buy the assets at a market price.  And if those
acquiring the assets want to pursue other economic activities than
shipbuilding, they must be allowed to. What matters most is the
break with the past, viable economic activity at these sites and
sustainable jobs."

Since 2002, Gdynia Shipyard benefited from various aid measures
(in particular capital injections, loans and tax write-offs)
amounting to EUR700 million and from production guarantees of
EUR916 million (both in nominal value).  Szczecin Shipyard
received aid of EUR1 billion as well as production guarantees of
EUR697 million (again, in nominal value).  The decisions require
that Poland recovers from the yards all state aid unlawfully
granted since May 2004.

The two yards have been in difficulties since the 1990s.  In April
2004, Poland notified restructuring aid for the two yards and the
Commission opened formal investigations in June 2005. Poland
submitted restructuring plans for both yards in September 2005 and
September 2006, both with substantial delays.  None of the plans
would have ensured long-term viability to the yards and the
restructuring would have been financed entirely by state aid.

In December 2006, Poland decided to privatize the shipyards, a
process, delayed several times, that eventually progressed in the
course of the year and lead to potential investors submitting
restructuring plans for the two yards on September 12, 2008.  The
plans represented an improvement in comparison to previous
versions.  However, despite further large amounts of state aid and
substantial job losses foreseen in these plans, the yards would
still not have been commercially viable.  The Commission therefore
concluded that the subsidies received by the Gdynia and Szczecin
shipyards did not comply with the guidelines on rescue and
restructuring aid but rather constituted illegal operating aid.
The Commission decision requires repayment of the illegal aid.

                         Asset Sale

In order to reduce the potential negative social and regional
effects of these decisions, the Commission agreed with Poland on
specific modalities of implementation, along the model developed
in the recent Olympic Airways decision.  Poland has submitted that
it needs to take legislative action to implement the sale of
assets.

Poland committed that the recovery will be implemented by way of a
sale of assets or small bundles of assets in an open, transparent,
non-discriminatory and unconditional tender.  The proceeds from
the sale of the assets will be used to repay creditors, including
the recovery claim of the state related to the unlawful aid.  The
existing companies owning the yards, with the remaining assets and
liabilities, will be liquidated.

The assets have to be sold at market price to the highest bidder.
The tender must be non-discriminatory, ensuring access to all
profiles of potential buyers, irrespective of the purpose of their
investment.  No conditions can be attached to the tender (for
example, a requirement that a bidder purchases all the assets of a
given yard).  The sole award criterion for the selection of the
winning bid will be revenue maximization for the benefit of the
yard's creditors.  An automatic transfer of employees to the new
economic activity cannot be imposed.  Any write-off or repayment
of public or private liabilities, financed by the State, would
amount to additional state aid and could not be accepted.  All
creditors and clients must be treated in the same way as they
would be in the framework of insolvency procedures.  The sale must
be conducted by an independent sales administrator under the close
supervision of the creditors ensuring that it is conducted on
market terms.  In addition, Poland and the Commission will appoint
jointly a monitoring trustee with the specific task to verify that
the sale and the recovery of the aid take place in full compliance
with the decisions.  Poland committed to complete the sale by the
end of May 2009.

Poland was assured in a letter from Commissioner Kroes that,
provided that these conditions are respected, this sale would not
be considered to involve new aid to buyer(s) of the yards' assets
and the assets could be transferred to the buyer(s) free of any
liability concerning the reimbursement of unlawful state aid.  The
buyers of the assets could therefore restart economic operations
without the burden of the past and in the absence of any
limitation concerning their future activity.

                About Stocznia Szczecinska

Headquartered in Szczecin, Poland, Stocznia Szczecinska Nowa
Sp. z o.o. -- http://www.ssn.pl/-- specialized in the
construction of container, chemicals transport, multi-purpose
and Con-Ro ships.  The company has been in insolvency after
experiencing substantial reduction of new ship orders, sharp
price decline, and several years of high exchange rate
between the Polish zloty and U.S. dollar.


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* Fitch Affirms 'D' Individual Ratings on Four Romanian Banks
-------------------------------------------------------------
Fitch Ratings has downgraded five Romanian banks and affirmed one
other, following Fitch's sovereign rating action taken on Romania.

Romania's Long-term foreign currency Issuer Default Rating was
downgraded to 'BB+' from 'BBB', LT local currency IDR to 'BBB-'
(BBB minus) from 'BBB+', and to Short-term FC IDR 'B' from 'F3'.
Its Country Ceiling is downgraded to 'BBB' from 'A-.  The Outlook
remains Negative.

The LT IDRs and Support ratings of the five downgraded Romanian
banks are driven by institutional support from their respective
foreign parents and are constrained by Romania's 'BBB' Country
Ceiling.  The Country Ceiling limits the extent to which potential
support from the banks' foreign parents can be factored into their
IDRs and Support ratings.

Banca Comerciala Romana S.A.:

  -- LT FC IDR: downgraded to 'BBB' from 'A-' (A minus); Outlook
     remains Negative

  -- LT LC IDR: downgraded to 'BBB' from 'A-' (A minus); Outlook
     remains Negative

  -- ST FC IDR: downgraded to 'F3' from 'F2'

  -- Individual rating: affirmed at 'C/D'

  -- Support rating: downgraded to '2' from '1'

BRD - Groupe Societe Generale S.A.:

  -- LT FC IDR: downgraded to 'BBB' from 'A-' (A minus); Outlook
     remains Negative

  -- ST FC IDR: downgraded to 'F3' from 'F2'

  -- Support rating: downgraded to '2' from '1'

Bancpost S.A.:

  -- LT FC IDR: downgraded to 'BBB' from 'A-' (A minus); Outlook
     remains Negative

  -- ST FC IDR: downgraded to 'F3' from 'F2'

  -- Individual rating: affirmed at 'D'

  -- Support rating: downgraded to '2' from '1'

Uni Credit Tiriac Bank S.A.:

  -- LT FC IDR: downgraded to 'BBB' from 'A-' (A minus); Outlook
     remains Negative

  -- ST FC IDR: downgraded to 'F3' from 'F2'
  -- Support rating: downgraded to '2' from '1'

  -- Individual rating: affirmed at 'D'

Banca Romaneasca S.A.:

  -- LT FC IDR: downgraded to 'BBB' from 'BBB+'; Outlook changed
     to Negative from Stable

  -- ST FC IDR: downgraded to 'F3' from 'F2'

  -- Support rating: affirmed at '2'

  -- Individual rating: affirmed at 'D'

The rating action on domestically owned private Romanian bank,
Banca Transilvania S.A., whose LT IDR is driven by its intrinsic
strength and hence not constrained by Romania's 'BBB' Country
Ceiling, is affirmed.  The Outlook is changed to Stable from
Positive since an improvement in operating environment is no
longer expected as reflected in the Negative Outlook on the
sovereign's LT IDRs.

Banca Transilvania S.A.:

  -- LT FC IDR: affirmed as 'BB-' (BB minus); Outlook changed to
     Stable from Positive

  -- ST FC IDR: affirmed at 'B'

  -- Support rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB-' (BB minus)

  -- Individual rating: affirmed at 'D'


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EUROPEAN TRUST: S&P Withdraws 'CCC+' Rating at Bank's Request
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC+' long-term
and 'C' short-term counterparty credit ratings and its 'ruBB'
Russia national scale rating on Russia-based European Trust Bank.
The ratings were subsequently withdrawn at the bank's request.

"As a result of the withdrawal, ETB will no longer be subject to
Standard & Poor's review," said Standard & Poor's credit analyst
Maria Malyukova.

At the moment of rating withdrawal the bank had no rated senior
unsecured debt outstanding.


KAZANORGSINTEZ OJSC: Fitch Junks IDR & Sr. Unsecured Debt Rating
----------------------------------------------------------------
Fitch Ratings has downgraded Tatarstan-based chemical producer
OJSC Kazanorgsintez's Long-term Issuer Default Rating to 'CCC'
from 'B-', following the agency's review of the company's interim
results.  Fitch also downgraded the senior unsecured debt rating
of Kazanorgsintez SA's US$200 million loan participating notes to
'CCC-' from 'B-' and assigned a Recovery Rating of 'RR5' to
reflect below-average recovery prospects in the event of a
default.  The ST IDR is downgraded to 'C' from 'B' and removed
from Rating Watch Negative.  The LT IDR and the senior unsecured
rating remain on RWN.

The rating action reflects Fitch's concerns over the material
deterioration in KOS's credit profile in H108 with no uplift
expected in H208 as demand and prices soften in the polyethylene
market.  Fitch forecasts that the combination of lower earnings
and higher debt in FY08 will translate into a gross debt/EBITDA
ratio above the 6x covenant on the company's US$200 million five-
year loan participation notes.  The agency notes that while the
leverage covenants on some of the company's bilateral bank
facilities have been met to date, they could come under pressure
should KOS's debt metrics deteriorate further.  Additionally,
KOS's weakening cash flow generation and stretched liquidity will
increase its reliance on refinancing to meet debt maturities of
US$330 million in FY09 (estimated US$149 million in Q109).  The
recent turmoil in the Russian financial markets, together with the
company's deteriorating financial profile, creates, in Fitch's
view, material refinancing risk.

KOS reported record low profitability in H108, with EBITDA down
42% yoy at RUB1.6 billion (US$59 million) and EBITDA margin down
to 13.1% from 26.7% in H107.  This was driven by high feedstock
prices, general cost inflation and incremental costs associated
with the newly installed capacity.

Together with the lower operating earnings, a sharp rise in cash
interest payments resulted in a negative RUB494 million (US$18
million) cash flow from operations.  This compares with a positive
RUB1.1 billion in H107 in H107.  Funds from operations/net cash
interest deteriorated to 1.7x in H108 from 4.8x in H107 (3x in
FY07) and EBITDA/gross interest coverage dropped to 3.1x from
25.1x in H107 (14.1x in FY07).

Fitch estimates that Gross debt/EBITDA was 7.2x for the LTM to
June 2008, up from 4.5x at FYE 12/07.  The agency expects the weak
performance to continue in H208, due to soft market conditions.

KOS's main challenges in the short term will be to secure funding
or extensions on maturing debt obligations and obtain a new waiver
from noteholders and, potentially, bilateral lenders on the
expected covenant breach.  A negative rating action could result
from KOS's inability to resolve those issues.  Conversely, should
KOS succeed in addressing those challenges, the ratings could be
affirmed.  Fitch stresses, however, that KOS's operating
performance in FY09 is likely to fall short of the levels
anticipated when the company launched its four-year debt-funded
capacity expansion program (completed in September 2008).  The
program is the primary factor behind KOS's heavy debt burden and
Fitch believes that KOS's ability to optimally run its newly
expanded ethylene capacity and to achieve the intended vertical
integration is hampered by its tolling agreement with Gazprom-
affiliated Sibur ('BB'/RWN).

Under the agreement, KOS is required to process 50% of the ethane
it receives from the Gazprom-owned Orenburg helium plant for
Sibur.  The Orenburg plant accounts for approximately 80% of KOS's
ethane supplies (including tolling volumes) and in early 2007, a
unilateral attempt by KOS to reduce tolling volumes resulted in
the suspension of supplies from the Orenburg plant with a visible
impact on profitability.  This underlines KOS's vulnerability to
supply concentration risk.  Sibur has reportedly been in talks
with KOS shareholders since mid-2007 to acquire a stake in the
company and Fitch understands the terms of the tolling agreement
have not been revised since.

Fitch is also concerned about the company's ability to derive
incremental earnings from the capacity ramp-up when demand for
plastics is likely to be affected by the global economic downturn.
Fitch has revised its global economic outlook, with Russia's
growth for 2009 now estimated at 4%, down from previous forecasts
of 7%-8%.  KOS's sales from export markets - which account for 25%
of revenues - are likely to be impacted by the combined effect of
the global economic slowdown and new HDPE capacity coming onstream
in the Middle East and western Europe in 2009.

While details remain unclear on a potential acquisition by Sibur,
Fitch notes that such a transaction could result in a positive
rating action, assuming that KOS's existing debt obligations are
taken over by the acquiring entity.


SUKHOI CIVIL: Fitch Holds Low-B Ratings; Outlook Negative
---------------------------------------------------------
Fitch Ratings revised the foreign and local currency Outlooks on
four Russian companies and affirmed the ratings of five companies.
The rating actions are following the change of Russia's foreign
and local currency Outlooks to Negative from Stable which was
prompted by a combination of economic and policy challenges, as
well as the expected deterioration in the sovereign's balance
sheet, albeit from an exceptionally strong initial position.

Russian companies whose Issuer Default Rating Outlooks have been
revised and whose ratings have been affirmed are:

JSC Russian Railways

  -- Long-term (LT) foreign currency (FC) IDR: affirmed at
     'BBB+'; Outlook revised to Negative from Stable

  -- LT local currency (LC) IDR: affirmed at 'BBB+'; Outlook
     revised to Negative from Stable

  -- Short-term (ST) FC IDR: affirmed at 'F2'

  -- Short-term (ST) LC IDR: affirmed at 'F2'

  -- National LT rating: affirmed at 'AAA(rus)';.Outlook remains
     Stable.

  -- National senior unsecured rating: affirmed at 'AAA(rus)'
     RZD's ratings are aligned with the sovereign's because the
     company is 100% state-owned and because of its strategic
     importance.

Sukhoi Civil Aircraft JSC

  -- LT FC IDR: affirmed at 'BB+'; Outlook revised to Negative
     from Stable

  -- LT LC IDR: affirmed at 'BB+'; Outlook revised to Negative
     from Stable

  -- ST FC IDR: affirmed at 'B'

  -- ST LC IDR: affirmed at 'B'

  -- Senior unsecured rating: affirmed at 'BB+'

  -- National LT rating: affirmed at 'AA(rus)'; Outlook remains
     Stable

  -- National ST rating: affirmed at 'F1+(rus)'

SCAC's ratings are linked to the sovereign's because it is
majority state-owned and because of its strategic importance.

Federal Hydrogeneration Company HydroOGK

  -- LT FC IDR: affirmed at 'BBB-' (BBB minus); Outlook revised
     to Negative from Stable

  -- National LT rating: affirmed at 'AA+(rus)'; Outlook remains
     Stable

RusHydro's ratings are linked to those of Russia due to state
ownership, the strategic importance of the company to the state,
and a degree of reliance by the company on investment funding from
the state.

OJSC OC Rosneft

  -- LT FC IDR: affirmed at 'BBB-' (BBB minus); Outlook revised
     to Stable from Positive

  -- LT LC IDR: affirmed at 'BBB-' (BBB minus); Outlook revised
     to Stable from Positive

  -- Rosneft Capital S.A.'s Debt Issuance Programme: affirmed at
     'BBB-' (BBB minus)

Rosneft's ratings benefit from the state's majority ownership as
well as implied and historically demonstrated indirect support,
which is particularly relevant for the company given its rapid and
acquisition-driven growth.

Russian companies whose ratings are affirmed with Stable Outlook
are:

OAO Gazprom

  -- LT FC IDR: affirmed at 'BBB'; Outlook remains Stable
  -- LT LC IDR: affirmed at 'BBB'; Outlook remains Stable
  -- Senior unsecured rating: affirmed at 'BBB'
  -- Gaz Capital S.A.'s debt issuance program: affirmed at
     'BBB'

Gazprom's ratings are based on its standalone profile, although
its state ownership and the influence of the state on Gazprom's
business environment and financial profile are factored into the
ratings.


WIMM-BILL-DANN: Moody's Revises Outlook on Ba3 Rating to Negative
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on the Ba3
corporate family rating of Wimm-Bill-Dann OJSC to negative.

The change in the outlook reflects short-term maturities
continuously accounting for a material part (currently about 35%)
of the company's debt against a background of tight market
conditions to access liquidity and challenging economic
conditions.  The liquidity management policy of the company is
based principally on the company's strong cash flow generation
capacity with no significant additional committed back-up credit
facilities signed well in advance dates of refinancing issues.
Though Moody's believes that the company has a number of options
to deal with the potential call of cash in the next few months,
such a liquidity profile is putting potential pressure on the
company's Ba3 going forward.  The agency also takes comfort that
Wimm-Bill-Dann has a strong historical operating performance in a
non-cyclical sector and moderate leverage, which provide a solid
base for continuous access to funding.

Moody's notes that the company may be required in March 2009 by
bondholders to buy back its Rbl5 billion bond under the put option
incorporated into the bond.  To meet this potential obligation
Wimm-Bill-Dann has already put aside approximately Rbl3.2 billion
cash and plans to earn the other needed part of the required sum
in the upcoming few months before March 2009.  The company is also
adjusting its capex plans and intends to continue its tight cost
management policy to achieve this goal.  The agency understands
that at the same time the company is in discussion with banks on
credit lines to additionally support its refinancing profile and
more broadly to get access to funding for further development of
its business.  Moody's expects that the company will generate the
sources necessary to meet the upcoming obligation if it were to
materialize but at the same time notes that the external funds the
company may attract would likely be of short-term nature, hence
not fully comforting the refinancing profile going forward.

The company's ability to develop in accordance with its own
projections, in particular increase its EBITDA in 2009 by about
20-22%, keep its leverage approximately at 2.0x, and have short-
term refinancing needs addressed in advance, would contribute to
the stabilizing outlook of the rating.

The rating could be downgraded if the company's cash flow
generation ability deteriorated and its leverage were approaching
2.5x with the company's short-term debt increasing and the
liquidity position being deteriorated.

Wimm-Bill-Dann is one of Russia's largest manufacturers of dairy
products and beverages, as well as baby foods, with more than
19,000 employees and 37 production facilities located
predominantly in Russia, as well as Uzbekistan, Kyrgyzstan,
Ukraine and Georgia. Of the company's 2007 sales of $2.4 billion,
dairy products account for approximately 76%.  The company's
founding shareholders have a 45% stake.  Groupe Danone, together
with its subsidiaries, holds a 18.4% stake, which enables it to
nominate a member to WBD's board of directors.


* NOVGOROD OBLAST: S&P Assigns 'B' Long-Term Issuer Rating
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
issuer and 'ruA' Russia national scale ratings to Novgorod Oblast,
one of 83 regions in the Russian Federation (foreign currency
BBB+/Negative/A-2; local currency A-/Negative/A-2; Russia national
scale 'ruAAA').

"The ratings reflect the oblast's concentrated economic base and
lower wealth levels than the Russian average, weak budgetary
performance on average, and an expected substantial increase in
tax-supported debt," said Standard & Poor's credit analyst Felix
Ejgel.

Novgorod Oblast's low direct debt service and the commitment of
oblast's new management to fostering long-term economic
development and timely debt repayment support the ratings.

The oblast's wealth levels are lower than the national average.
Moderate annual economic growth of about 5% in 2003-2007 could
slow to 2.0%-2.5% in 2009-2010 due to the ongoing credit crisis.
The oblast's largest enterprise, JSC Acron is responsible for 20%
of the oblast's industrial output.

As a result of the concentration of its economic base, the
oblast's budgetary performance remains unstable.  Due to one-time
payments from Acron, the operating balance should improve to 7%
before it declines to a mere 1% on average in 2009-2010.

The oblast's new management team is timely servicing debt
obligations in full.  Direct debt should remain at about a modest
16% of operating revenues in 2008-2009, while debt service will
account for 3% of total revenues.  Tax-supported debt is set to
increase substantially, however, to about 50% of total revenues in
2009 after the oblast issues new guarantees to the private sector.

The oblast had accumulated Russian ruble 2.1 billion
($77.7 million) of cash on accounts as of Sept. 30, 2008.

"The stable outlook reflects S&P's expectation that the efforts
taken by the oblast government to attract private and federal
budget investment in local infrastructure will lead to moderate
economic growth in 2010 and help the region stabilize its
budgetary performance at modest levels.  The outlook also factors
in S&P's assumption that the oblast guarantees are to be granted
only to long-term amortizing loans.

"We could revise the outlook on Novgorod Oblast to positive should
the nonchemical sectors of the local economy grow faster than
projected, thanks to solid private and public investments
stimulating revenue growth, which would allow for higher
infrastructure-related spending and only modest recourse to debt,"
said Mr. Ejgel


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FONCAIXA FTPYME: Moody's Puts (P)C Rating on EUR76.4MM Notes
------------------------------------------------------------
Moody's Investors Service assigned these provisional ratings to
the debt to be issued by FONCAIXA FTPYME 2, Fondo de Titulizacion
de Activos:

  -- (P)Aaa to the EUR533.7 million Series AS notes
  -- (P)Aaa to the EUR456.3 million Series AG notes
  -- (P)A3 to the EUR27.5 million Series B notes
  -- (P)Baa3 to the EUR82.5 million Series C notes
  -- (P)C to the EUR76.4 million Series D notes

FONCAIXA FTPYME 2, Fondo de Titulizacion de Activos, a
securitization of small- and medium-sized enterprise loans under
the FTPYME program carried out by La Caixa, comes after the
concession by the Spanish Ministry of Economy of a new guarantee
budget for the current year.

According to Moody's, this deal benefits from several credit
strengths including:

(1) a well diversified portfolio in terms of industry
    concentration, with a Real Estate exposure below 18% (and no
    loans to real estate developers);

(2) a strong swap agreement guaranteeing an excess spread of
    0.50%;

(3) a 6.95% reserve fund to cover potential shortfalls in
    interest or principal;

(4) a 12-month artificial write-off mechanism; and

(5) the guarantee of the Kingdom of Spain (Aaa/P-1), as concerns
    the Series AG notes.

However, Moody's notes that the deal also features credit
weaknesses, notably:

(1) around 41% of the borrowers are micro-SMEs (turnover below
    EUR1 million) and around 26% are self-employed;

(2) pro-rata amortization of the notes; and

(3) the negative impact of the interest deferral trigger on the
    subordinated series.

These increased risks were reflected in the credit enhancement
calculation.

The provisional pool of underlying assets was, as of October 2008,
composed of a portfolio of 30,456 loans and 27,535 borrowers,
granted to Spanish enterprises and self-employed individuals.  The
loans have been originated between 1990 and 2008, with a weighted
average seasoning of 2.89 years and a weighted average remaining
life of 9.47 years.  Around 62% of the outstanding of the
portfolio is secured by mortgage guarantee over different types of
properties (58.9% of the portfolio being first-lien with a
weighted average LTV of 46.7%).  Geographically, the pool is
concentrated in Madrid (24.3%), Andalusia (12.8%) and Valencia
(12.1%).  At closing, there will be no loans in arrears.

Moody's based the ratings primarily on:

   (i) an evaluation of the underlying portfolio of loans;

  (ii) historical performance information and other statistical
       information;

(iii) the swap agreement hedging the interest rate risk;

  (iv) the credit enhancement provided through the GIC account,
       the excess spread, the cash reserve and the subordination
       of the notes; and

   (v) the legal and structural integrity of the transaction.

Moody's initially analyzed and will monitor this transaction using
the rating methodology for EMEA SMEs loan-backed transactions as
described in the Rating Methodology report "Moody's Approach to
Rating Granular SME Transactions in Europe, Middle East and
Africa" June 2007.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes.  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par on or before the rated final legal
maturity date on Series AS, AG, B and C, and for ultimate payment
of interest and principal at par on or before the rated final
legal maturity date on Series D.  Moody's ratings address only the
credit risks associated with the transaction.  Other non-credit
risks have not been addressed, but may have a significant effect
on yield to investors.

Moody's issues provisional ratings in advance of the final sale of
securities, and these ratings only reflect Moody's preliminary
credit opinions regarding the transaction.  Upon a conclusive
review of the final pool of assets and the final documentation,
Moody's will endeavor to assign a definitive rating to the notes.
A definitive rating, if any, may differ from a provisional rating.
Date of previous rating action: no previous rating action since
initial rating assignment.


SANTANDER HIPOTECARIO: S&P Affirms Junk Ratings on 3 Note Classes
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its credit ratings on the class C to E notes issued by Fondo de
Titulizacion de Activos Santander Hipotecario 2 (Santander
Hipotecario 2), and the class B to E notes issued by Fondo de
Titulizacion de Activos Santander Hipotecario 3 (Santander
Hipotecario 3) and Fondo de Titulizacion de Activos Santander
Hipotecario 4 (Santander Hipotecario 4).  All other notes issued
by Santander Hipotecario 2, Santander Hipotecario 3 and Santander
Hipotecario 4, as well as those issued by Fondo de Titulizacion de
Activos Santander Hipotecario 1 (Santander 1) have been affirmed.

All the Santander Hipotecario transactions are backed by
portfolios of residential mortgage-backed loans secured over
residential properties in Spain.  The collateral backing these
transactions is characterized by a higher loan-to-value ratios and
lower-than-average seasoning in the Spanish market.

These CreditWatch placements follow deterioration in the
performance of the underlying pools.  A high concentration of
defaults and low levels of available excess spread have resulted
in the depletion of the reserve funds for Santander Hipotecario 3
and Santander Hipotecario 4.  Santander Hipotecario 2 has also
drawn under its reserve fund, although its fund remains at over
80% of its minimum required level.

All these transactions feature a structural mechanism that traps
excess spread to provision for the full balance of defaulted
loans.  A loan is considered as defaulted either when it is in
arrears for more than 18 months, or if the servicer deems it as
defaulted.  Most defaults which have recently materialized have
been classified by the servicer as early defaults.

S&P will now request from the servicer full information on the
current portfolios backing these deals, and will consider the
quality and quantity of that information when S&P review these
CreditWatch placements.

                           Rating List

              Ratings Placed on CreditWatch Negative

      Fondo de Titulizacion de Activos Santander Hipotecario 2
      EUR1.955 Billion Mortgage-Backed Floating-Rate Notes And
       An Overissuance Of EUR17.6 Million Floating-Rate Notes

             Class                  Rating
             -----                  ------
                          To                    From
                          --                    ----
               C          A-/Watch Neg          A-
               D          BBB/Watch Neg         BBB
               E          BB/Watch Neg          BB

      Fondo de Titulizacion de Activos Santander Hipotecario 3
          EUR2.8 Billion Mortgage-Backed Floating-Rate And
       An Overissuance Of EUR22.4 Million Floating-Rate Notes

             Class                  Rating
             -----                  ------
                          To                    From
                          --                    ----
               B          AA/Watch Neg          AA
               C          A/Watch Neg           A
               D          BBB/Watch Neg         BBB
               E          BB/Watch Neg          BB

      Fondo de Titulizacion de Activos Santander Hipotecario 4
      EUR1.23 Billion Mortgage-Backed Floating-Rate Notes And
       An Overissuance Of EUR14.8 Million Floating-Rate Notes


             Class                  Rating
             -----                  ------
                          To                    From
                          --                    ----
               B          AA/Watch Neg          AA
               C          A/Watch Neg           A
               D          BBB/Watch Neg         BBB
               E          BB/Watch Neg          BB

                        Ratings Affirmed

      Fondo de Titulizacion de Activos Santander Hipotecario 1
        EUR1.875 Billion Mortgage-Backed Floating-Rate Notes

                     Class     Rating
                     -----     ------
                      A        AAA
                      B        AA
                      C        A+
                      D        BBB+

      Fondo de Titulizacion de Activos Santander Hipotecario 2
      EUR1.955 Billion Mortgage-Backed Floating-Rate Notes And
       An Overissuance Of EUR17.6 Million Floating-Rate Notes

                     Class     Rating
                     -----     ------
                      A        AAA
                      B        AA-
                      F        CCC-

      Fondo de Titulizacion de Activos Santander Hipotecario 3
          EUR2.8 Billion Mortgage-Backed Floating-Rate And
       An Overissuance Of EUR22.4 Million Floating-Rate Notes

                     Class     Rating
                     -----     ------
                      A        AAA
                      F        CCC-

      Fondo de Titulizacion de Activos Santander Hipotecario 4
      EUR1.23 Billion Mortgage-Backed Floating-Rate Notes And
       An Overissuance Of EUR14.8 Million Floating-Rate Notes

                     Class     Rating
                     -----     ------
                     A        AAA
                     F        CCC-


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S W E D E N
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D. CARNEGIE: Swedish Government Takes Control
---------------------------------------------
Niklas Magnusson at Bloomberg News reports that the Swedish
government has taken over D. Carnegie & Co. AB, putting the
investments of shareholders at risk.

Carnegie, the report discloses, will be sold off in parts.

According to the report, Sweden's national debt office assumed
control of Carnegie Investment Bank AB and Max Matthiessen Holding
AB, the two units that make up Carnegie.

The divisions, the report notes, had been used for a
SEK5 billion (US$640 million) loan made by Swedish government to
shore up Carnegie's funding last month.

The debt office, on Monday, ousted the entire board of the bank,
which was fined a year ago by Sweden's Financial Services
Authority for lack of adequate internal control of its trading
operations, the report relates.

The Swedish financial regulator also revoked Carnegie's license to
operate.  The bank would regain the license when taken over by the
national debt office, the report adds.

"If the debt office had not taken ownership, the bank's business
operations would have had to be wound up," the report quotes  the
financial regulator as saying.  "This would have led to a rapid
fall in the value of the collateral."

The financial regulator accused Carnegie of taking "exceptional
risks" with loans, the report recounts.

Carnegie, which has lost 87 percent of its value in the past year,
was suspended from trading on the Stockholm stock exchange, the
report states.

On September 30, shareholders of the bank included Franklin-
Templeton Funds, ABG Sundal Collier ASA, Swedbank Robur funds and
the first and second Swedish state pension funds, the report
reveals.

Headquartered in Stockholm, Sweden, D. Carnegie & Co. AB --
http://www.carnegie.se/-- is an independent Nordic investment
bank engaged in securities broking, investment banking, asset
management, and private banking, as well as in pension advice.


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U K R A I N E
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CAR TECHNICS: Creditors Must File Claims by November 22
-------------------------------------------------------
Creditors of LLC Car Technics (code EDRPOU 31437242) have until
Nov. 22, 2008, to submit proofs of claim to:

         Mr. R.  Breus L
         Liquidator
         Ap. 70
         Novoprudnaya Str. 4
         61018 Kharkov
         Ukraine

The Arbitration Court of Kharkov commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 6, 2008.
The case is docketed as B-48/130-08.

         The Economic Court of Kharkov
         Derzhprom 8th Entrance
         Svoboda Square 5
         61022 Kharkov
         Ukraine

The Debtor can be reached at:

         LLC Car Technics
         August 23rd Str. 51
         61103 Kharkov
         Ukraine


FARCIDA LLC: Creditors Must File Claims by November 21
------------------------------------------------------
Creditors of LLC Farcida (code EDRPOU 33523406) have until
Nov. 21, 2008, to submit proofs of claim to:

         Mr. Usachov Oleg
         Liquidator
         Sachko Str. 26/27
         Dnieprodzerzhynsk
         Dnipropetrovsk
         Ukraine

The Arbitration Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on
Oct. 13, 2008.  The case is docketed as B 29/212-08.

         The Economic Court of Dnipropetrovsk
         Kujbishev Str. 1a
         49600 Dnipropetrovsk
         Ukraine

The Debtor can be reached at:

         LLC Farcida
         Dimitrov Str. 4-a, Ap. 43
         Dnieprodzerzhynsk
         51900 Dnipropetrovsk
         Ukraine


FERRUM-M LLC: Creditors Must File Claims by November 22
-------------------------------------------------------
Creditors of LLC FERRUM-M (code EDRPOU 33302546) have until
Nov. 22, 2008, to submit proofs of claim to:

         Mr. B. Krupka
         Liquidator
         Ap. 193
         Independency Square, 2
         Brovary
         07400 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 16, 2008.
The case is docketed as 24/395-b.

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Debtor can be reached at:

         LLC Ferrum-M
         Academic Bogomolets Str. 6
         01024 Kiev
         Ukraine


MAKAROV MOTORCAR: Creditors Must File Claims by Nov. 22
-------------------------------------------------------
Creditors of JSC Makarov Motorcar Enterprise 13240 (code EDRPOU
05538810) have until Nov. 22, 2008, to submit proofs of claim to:

         LLC Alarit Ukraine
         Liquidator / Insolvency Manager
         K. Liebkneht Str. 27
         Skvira
         Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 8, 2008.
The case is docketed as B 11/282-08.

         The Economic Court of Kiev
         Komintern Str. 16
         01032 Kiev
         Ukraine

The Debtor can be reached at:

         OJSC Makarov Motorcar Enterprise 13240
         Lenin Str. 42
         Makarov
         08132 Kiev
         Ukraine


MALIN CELLULOSE-PAPER: Creditors Must File Claims by Nov. 22
------------------------------------------------------------
Creditors of LLC Malin Cellulose-Paper Experimental Factory
(code EDRPOU 30939578) have until Nov. 22, 2008, to submit proofs
of claim to:

         Mr. A. Boreyko
         Liquidator / Insolvency Manager
         Ap. 304
         Putiatinsky Square, 2
         10002 Zhytomir
         Ukraine

The Arbitration Court of Zhytomir commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 25, 2008.

         The Economic Court of Zhytomir
         Putiatinskiy Square 3/65
         10014 Zhytomir
         Ukraine

The Debtor can be reached at:

         LLC Malin Cellulose-Paper Experimental Factory
         Nemanikhin Str. 2
         Malin
         11602 Zhytomir
         Ukraine


SERVICE-CLASSIK LLC: Creditors Must File Claims by November 21
--------------------------------------------------------------
Creditors of LLC Company Service-Classik (code EDRPOU 35017600)
have until Nov. 21, 2008, to submit proofs of claim to:

         Mr. Zlenko Vitaly
         Liquidator/Insolvency Manager
         Balochnaya Str. 3
         Makieyevka
         86100 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 29, 2008.
The case is docketed as 5/116b.

         The Economic Court of Donetsk
         Artema Str. 157
         83048 Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Company Service-Classik
         Poleglykh Komunarov Str. 76
         83087 Donetsk
         Ukraine


SPHERE-TRANS LLC: Creditors Must File Claims by November 22
-----------------------------------------------------------
Creditors of LLC Sphere-Trans (code EDRPOU 34614635) have until
Nov. 22, 2008, to submit proofs of claim to:

         Mr. B. Krupka
         Liquidator
         Ap. 193
         Independency Square, 2
         Brovary
         07400 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 16, 2008.
The case is docketed as 24/393-b.

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Debtor can be reached at:

         LLC Sphere-Trans
         P. Lumumba Str. 15-A
         01042 Kiev
         Ukraine


TECHNO-PROM LLC: Creditors Must File Claims by November 21
----------------------------------------------------------
Creditors of LLC Company Techno-Prom (code EDRPOU 35017573) have
until Nov. 21, 2008, to submit proofs of claim to:

         Mr. Zlenko Vitaly
         Liquidator/Insolvency Manager
         Balochnaya Str. 3
         Makieyevka
         86100 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on  Sept. 29, 2008.
The case is docketed as 5/114b.

         The Economic Court of Donetsk
         Artema Str. 157
         83048 Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Company Techno-Prom
         Kiev Avenue, 36D
         83054 Donetsk
         Ukraine


TECHNOSTAR-XXI LLC: Creditors Must File Claims by November 22
-------------------------------------------------------------
Creditors of LLC Technostar-XXI (code EDRPOU 34809498) have until
Nov. 22, 2008, to submit proofs of claim to:

         Mr. B. Krupka
         Liquidator
         Ap. 193
         Independency Square, 2
         Brovary
         07400 Kiev
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 16, 2008.
The case is docketed as 24/396-b.

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Debtor can be reached at:

         LLC Technostar-XXI
         Kikvidze Str. 11
         01103 Kiev
         Ukraine


TH TECHNOVSESVIT: Creditors Must File Claims by November 21
-----------------------------------------------------------
Creditors of LLC TH Technovsesvit (code EDRPOU 35636204) have
until Nov. 21, 2008, to submit proofs of claim to:

         Mr. Zlenko Vitaly
         Liquidator / Insolvency Manager
         Balochnaya Str. 3
         Makieyevka
         86100 Donetsk
         Ukraine

The Arbitration Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 3, 2008.
The case is docketed as 5/115b.

         The Economic Court of Donetsk
         Artema Str. 157
         83048 Donetsk
         Ukraine

The Debtor can be reached at:

         LLC TH Technovsesvit
         Kuprin Str. 117
         83122 Donetsk
         Ukraine


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U N I T E D   K I N G D O M
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AUTUMN GRANGE: Picks Joint Administrators from Grant Thornton
-------------------------------------------------------------
Keith Hinds and Robert Harry Pick of Grant Thornton UK LLP were
appointed joint administrators of Autumn Grange Ltd. on Oct. 27,
2008.

The company can be reached through Grant Thornton UK LLP at:

         No. 1 Whitehall
         Riverside
         Leeds
         LS1 4BN
         England


BRITISH AIRWAYS: Reports GBP52 Mil. PBT in First Half 2008
----------------------------------------------------------
British Airways plc presented its interim management report for
the six months ended September 30, 2008.

Period highlights:

  -- Operating profit of GBP140 million
     (2007: GBP567 million - restated)

  -- Profit before tax of GBP52 million
     (2007: GBP616 million - restated)

  -- Revenue GBP4,754 million
     (2007: GBP4,470 million - restated)

  -- Full year fuel costs still expected to
     be about GBP3 billion

Commenting on the results, British Airways' chief executive Willie
Walsh, said:
"This is a good performance given the incredibly difficult trading
conditions.  The six month period will be remembered as one of the
bleakest on record.  The period was hit by a crisis in the banking
sector, record fuel prices and several airlines going out of
business.

"Against this very tough economic backdrop we have delivered
profits of GBP140 million resulting from a 6.4 per cent revenue
increase.

"Costs are up GBP711 million and remain a key challenge.  Fuel
costs for the period were up GBP511 million at GBP1,494 million.
Our annual fuel bill is still expected to be up some 50 per cent
at about GBP3 billion.  Employee costs, including a GBP40 million
severance provision, were up 8.6 per cent."

                        Financial Review

British Airways's total revenue in the period was up 6.4 per cent.

Passenger revenue was up 6.5 per cent on capacity up 1.3 per cent.
Yields were up 10.5 per cent as a result of both price increases
and the impact of a stronger US dollar.  Traffic volumes have
reduced on last year and seat factor was down 3.8 points to 74.6
per cent.  Trading conditions continue to be challenging, with
longhaul premium traffic in particular having weakened after the
summer.

Cargo business continued to perform well with volumes measured in
cargo tonne kilometres (CTKs) up 2 per cent on last year.  Revenue
rose 25.2 per cent to GBP363 million, underpinned by fuel
surcharge recoveries and strong volumes.  Overall, yields improved
by 22.7 per cent.

Total Group operating costs were up 18.2 per cent, due primarily
to the dramatic increase in fuel costs, with unit costs up 19.2
per cent.

Fuel costs were up 52 per cent on last year, despite a fuel
hedging profit of GBP329 million during the period.  The market
price of fuel was up 73 per cent over the same period last year.

Other costs were also up GBP200 million, with currency effects
contributing almost half of the increase.

Cash level at the end of September unchanged from March at GBP1.8
billion.  Net debt was GBP1.4 billion, in line with this time last
year.  Committed facilities of GBP2.0 billion have been secured
for aircraft purchases out to December 2012.

BA also has a general purpose committed facilities of GBP0.6
billion.

The Group performed an interim valuation update for the UK defined
benefit pension schemes on an IAS 19 basis, as at September 30,
2008, which showed a net increase of GBP201 million to the pension
deficit.  This resulted in no change to the amounts recorded in
the Group's financial statements, due to its application of the
corridor.

As previously announced, during the six month period BA has taken
a charge of GBP79 million for the abolition of industrial building
allowances, which contributed to the post-tax loss of GBP42
million.  Excluding the one-off cost, the tax rate for the period
would have been 29 per cent.

BA's directors recommend that no dividend be paid for the period
ended September 30, 2008.

                  About British Airways

Headquartered in Harmondsworth, England, British Airways Plc
-- http://www.ba.com/-- operates of international and domestic
scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services.  The British Airways group consists of British
Airways plc and a number of subsidiary companies including in
particular British Airways Holidays Ltd.  and British Airways
Travel Shops Ltd.  BA has offices in India and Guatemala.

                         *     *     *

British Airways Plc continues to carry a "Ba1" senior
unsecured debt rating from Moody's with a stable outlook.


DANWEL LTD: Names Tenon Recovery as Joint Administrators
--------------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint administrators of Danwel Ltd. on Oct. 27, 2008.

The company can be reached through Tenon Recovery at:

         Tenon House
         Ferryboat Lane
         Sunderland
         Tyne & Wear
         SR5 3JN
         England


DELTA CDO: Credit Deterioration Cues Moody's Junk Ratings
---------------------------------------------------------
Moody's Investors Service downgraded its ratings of three classes
of notes issued by Delta CDO plc - Series 2005-2.  Two of these
classes of notes remain under review for possible downgrade.

These rating actions are a response to credit deterioration in the
underlying portfolio.  The transaction is a synthetic CDO
referencing, among other assets, a large proportion of Moody's
prime and subprime RMBS.  Approximately 4% of the portfolio is
currently rated Caa1 or below.

Moody's announced on Sept. 18, 2008 that it is revising its
expected loss assumptions which are used for the surveillance of
ratings of ABS CDOs holding subprime RMBS, specifically of the
second half 2005 -- first half 2007 vintages.  Moody's stated that
for purposes of monitoring its ratings of ABS CDOs with exposure
to second half 2005 -- first half 2007 subprime RMBS, it will rely
on certain projections of the lifetime average cumulative losses
for vintages of RMBS set forth in a recent Moody's Special Report.
Moody's explained that it will utilize the range of loss
projections set forth in the report based on deal performance and
quarterly vintage to modify its prior assumptions of the expected
loss inputs when monitoring ABS CDO ratings.

The rating actions are:

Delta CDO plc - Series 2005-2:

(1) Series 2005-2 USD60,000,000 B-1 Floating Rate Credit Linked
    Secured Notes due 2045

    -- Current Rating: Caa2, on review for possible downgrade
    -- Prior Rating: Aaa
    -- Prior Rating Action Date: Aug. 18, 2005

(2) Series 2005-2 USD28,000,000 C-1 Floating Rate Credit Linked
    Secured Notes due 2045

    -- Current Rating: Caa3, on review for possible downgrade
    -- Prior Rating: Aa2
    -- Prior Rating Action Date: Aug. 18, 2005

(3) Series 2005-2 USD4,500,000 E-1 Floating Rate Credit Linked
    Secured Notes due 2045

    -- Current Rating: Ca
    -- Prior Rating: Baa2
    -- Prior Rating Action Date: Aug. 18, 2005


DSR PRINT: Appoints Joint Administrators from BDO Stoy
------------------------------------------------------
Geoffrey Stuart Kinlan and William John Turner of BDO Stoy Hayward
LLP were appointed joint administrators of DSR Print Management
Ltd. on Oct. 27, 2008.

The company can be reached through BDO Stoy Hayward LLP at:

         Prospect Place
         85 Great North Road, Hatfield
         Hertfordshire
         AL9 5BS
         England


HADDON HEALTHCARE: Taps Joint Administrators from Grant Thornton
----------------------------------------------------------------
Keith Hinds and Robert Harry Pick of Grant Thornton UK LLP, were
appointed joint administrators of Haddon Healthcare Ltd. on
Oct. 27, 2008.

The company can be reached through Grant Thornton UK LLP at:

         No. 1 Whitehall
         Riverside
         Leeds
         LS1 4BN
         England


ILIAD INVESTMENT: Moody's Slices Ratings on Six Classes of Notes
----------------------------------------------------------------
Moody's Investors Service downgraded its ratings of six classes of
notes issued by Iliad Investment PLC -- Series 9 and Series 14.

These rating actions are a response to credit deterioration in the
underlying portfolio.  These transactions are synthetic CDO
squared. Each of the CDOs are similar in structure and comprise of
between 80% - 85% ABS assets, with the remainder as corporate
exposure.  A large proportion of the ABS assets are subprime RMBS
bonds of the 2006 and 2007 vintages.  Currently, around 8% and 10%
of portfolio by volume is rated Caa1 or below and the current
subordination below the lowest tranche is 4.54% and 2.73%, for
Iliad Series 9 and Iliad Series 14 respectively.

Moody's announced on Sept. 18, 2008 that it is revising its
expected loss assumptions which are used for the surveillance of
ratings of ABS CDOs holding subprime RMBS, specifically of the
second half 2005 -- first half 2007 vintages.  Moody's stated that
for purposes of monitoring its ratings of ABS CDOs with exposure
to second half 2005 -- first half 2007 subprime RMBS, it will rely
on certain projections of the lifetime average cumulative losses
for vintages of RMBS set forth in a recent Moody's Special Report.
Moody's explained that it will utilize the range of loss
projections set forth in the report based on deal performance and
quarterly vintage to modify its prior assumptions of the expected
loss inputs when monitoring ABS CDO ratings.

The rating actions are:

Iliad Investment P.L.C. Series 9:

(1) The EUR25,000,000 Series 9 Class A1 5.10 per cent Notes due
    2013

    -- Current Rating: Caa3, on review for possible downgrade
    -- Prior Rating: Aaa
    -- Prior Rating Action Date: May 28, 2003

(2) The EUR10,000,000 Series 9 Class A2 Secured Floating Rate
    Notes due 2013

    -- Current Rating: Caa3, on review for possible downgrade
    -- Prior Rating: Aaa
    -- Prior Rating Action Date: May 28, 2003

(3) The CHF12,500,000 Series 9 Class A3 Secured Floating Rate
    Notes due 2013

    -- Current Rating: Caa3, on review for possible downgrade
    -- Prior Rating: Aaa
    -- Prior Rating Action Date: May 28, 2003

Iliad Investment P.L.C. Series 14:

(1) The EUR40,000,000 Series 14 Class A Secured Floating Rate
    Notes due 2010

    -- Current Rating: Caa1, on review for possible downgrade
    -- Prior Rating: Aaa
    -- Prior Rating Action Date: Aug. 12, 2003

(2) The EUR30,000,000 Series 14 Class B Secured Floating Rate
    Notes due 2010

    -- Current Rating: Caa2, on review for possible downgrade
    -- Prior Rating: Aa2
    -- Prior Rating Action Date: Aug. 12, 2003

(3) The EUR 30,000,000 Series 14 Class C Secured Floating Rate
    Notes due 2010

    -- Current Rating: Caa3, on review for possible downgrade
    -- Prior Rating: A2
    -- Prior Rating Action Date: Aug. 12, 2003


J & F WEDDINGS: Taps Joint Liquidators from Tenon Recovery
----------------------------------------------------------
Matthew Colin Bowker and Jonathan Paul Philmore of Tenon Recovery
were appointed joint liquidators of J & F Weddings Ltd. on
Oct. 21, 2008, for the creditors' voluntary winding-up proceeding.

The company can be reached through  Tenon Recovery at:

         Lowgate House
         Lowgate
         Hull
         HU1 1EL
         England

The company operates as a clothing retailer.


LANDMARK MORTGAGE: S&P Puts Low-B Ratings on Classes C & D Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on the class C and D notes
issued by Landmark Mortgage Securities No. 2 PLC after a
deterioration in the performance of the underlying collateral.
S&P also affirmed the class A and B notes.

This rating action follow a full credit and cash flow analysis of
the most recent loan-level information as of the September 2008
interest payment date.  This information shows that while credit
enhancement levels available to the notes have increased, the
performance of the underlying collateral has deteriorated.

As of the September IPD, cumulative losses remain relatively low
at 0.26%.  However, there has been a notable increase in the
number of properties repossessed recently. In the September
quarterly reporting period, 2.63% of the pool went into
repossession, with total repossessions now standing at 3.86%.  As
of the previous IPD (June 2008), 1.76% of properties were in
repossession.

As these properties are sold S&P expect to see a significant
increase in losses.  Currently, repossessions have a weighted-
average loss severity of 22.3%.  Furthermore, with 90+ day arrears
standing at 12.8% of the current pool balance (excluding
repossessions), this indicates the strong potential for increased
repossession rates in the near future.

As U.K. house prices continue to decline, the current loan-to-
value ratios of the pool will increase and S&P expects higher
average losses for loans on properties that have been repossessed
and loans that ultimately default.  Under the current market
conditions, S&P also expects an increase in the time from
repossession to sale, leading to increased arrears levels before
sale.

The notes, issued in 2007, are backed by a portfolio of first-
ranking residential mortgages secured over properties in the U.K.
The mortgage loans were originated by Unity Homeloans Ltd.,
Infinity Mortgages Ltd., and Amber Homeloans Ltd. and subsequently
bought by Investec Bank (UK) Ltd.

                          Ratings List

            Landmark Mortgage Securities No. 2 PLC
       EUR51.500 Million And GBP322.645 Million Mortgage-Backed
                      Floating-Rate Notes

        Ratings Lowered And Removed From CreditWatch Negative

             Class                  Rating
             -----                  ------
                          To                       From
                          --                       ----
             C            BB+                      BBB/Watch Neg
             D            B+                       BB/Watch Neg


                       Ratings Affirmed

                     Class         Rating
                     -----         -----
                     Aa            AAA
                     Ac            AAA
                     Ba            A
                     Bc            A


MFI RETAIL: Decathlon May Acquire Stores Under Administration
-------------------------------------------------------------
France-based sport retailer Decathlon is considering to acquire
stores put into administration by MFI Retail Ltd last month,
Retail Week reports.

"We're looking at the list of disposals.  If the location is good
and the size is right, we will think about it," Stephan  Vyret,
Decathlon's development director, was quoted by Retail
Week as saying.

MFI, Retail Week relates, placed 95 of its weaker-performing
stores -=96 about half of its portfolio -=96 into the hands of
administrators Kroll last month.  The report notes many are likely
to close completely.

According to the report, Decathlon is eyeing the MFI stores as
potential sites for its expansion program.  The French sport
retailer, the report reveals, seeks to expand its UK portfolio to
about 40 within five years.

Decathlon is expected to make a decision in the coming months, the
report discloses.

The Range, a home and leisure garden retailer is also understood
to be interested in the MFI stores in administration, the report
adds.


MONIER: Hires Goldman to Restructure Debt on Breach Concerns
------------------------------------------------------------
Helen Power at The Times reports that Monier Group has hired
Goldman Sachs to restructure an estimated EUR2 billion (GBP1.6
billion) of debt amid fears that the company might breach its
banking covenants next month.

Citing insiders, the report discloses Monier is at risk of
breaching its December 31 covenant.  The company, the report
relates, drew down EUR125 million from its credit facilities last
month to give it an additional cash cushion.  However, it
has not provided lenders with detailed guidance about its
end-of-year figures, heightening concerns about a possible
covenant breach, the report adds.

According to the report, PAI, which bought Monier for EUR2.4
billion in March last year, could be forced to inject more equity
into the business to appease lenders.

Goldman, which was drafted in by PAI, is understood to be looking
at a range of options including covenant waiver negotiations, a
PAI-backed debt buyback and or a refinancing, although this will
be very difficult in the current debt markets, the report states.

PAI, the report recounts, unveiled plans this year to cut Monier's
debt by buying back about 20 per cent of it.

The Goldman team is led by Andrew Wilkinson, the bank's global
head of restructuring, the report reveals.

Monier Group -- http://www.monier.co.uk/-- supplies pitched-
roofing products, roofing components and chimney systems.  It has
more than 200 production sites and activities in 46 countries,
including the United Kingdom, Germany, Poland, among others.  In
2006, Monier employed more than 12,000 people, generating sales of
over EUR1.6 billion.


OCTAGON LIMITED: Moody's Cuts Rating on EUR6 Million Notes to C
---------------------------------------------------------------
Moody's Investors Service downgraded its rating of notes issued by
Octagon Limited under Series 2006-1.

This rating action follows the downgrade of the rating of the
US$7,500,000 Class D-1 Floating Rate Notes due 2045 issued by
Palmer Square plc.  The repack notes issued by Octagon Limited are
credit linked to the Palmer Square Class D-1 notes which are now
rated C.  The underlying assets of the Palmer Square transaction
are predominantly 2004 -- 2007 vintage Moody's subprime and
Moody's ABS CDOs.

Issuer: Octagon Limited

(1) EUR6,000,000 Secured Deferrable Floating Rate Notes due
    April 2045, Credit Linked to the Palmer Square plc
    US$7,500,000 Class D-1 Floating Rate Notes due 2045

    -- Current Rating: C
    -- Prior Rating: Caa1, on review for downgrade
    -- Prior Rating Action Date: May 13, 2008


PARK ASSOCIATES: Taps Joint Administrators from Grant Thornton
--------------------------------------------------------------
Keith Hinds and Robert Harry Pick of Grant Thornton UK LLP were
appointed joint administrators of Park Associates (Park Homes)
Ltd. on Oct. 27, 2008.

The company can be reached through Grant Thornton UK LLP at:

         No. 1 Whitehall
         Riverside
         Leeds
         LS1 4BN
         England


PARK GROUP: Appoints Joint Administrators from Grant Thornton
-------------------------------------------------------------
Keith Hinds and Robert Harry Pick of Grant Thornton UK LLP were
appointed joint administrators of The Park Group (Park Estates)
Ltd. on Oct. 27, 2008.

The company can be reached through Grant Thornton UK LLP at:

         No. 1 Whitehall
         Riverside
         Leeds
         LS1 4BN
         England


RATHVILLY SCHOOL: Names Joint Administrators from Deloitte
----------------------------------------------------------
Stephen Anthony John Ramsbottom and Dominic Lee Zoong Wong of
Deloitte & Touche LLP were appointed joint administrators of
Rathvilly Private School Ltd. on Oct. 29, 2008.

The company can be reached through  Deloitte & Touche LLP at:

         Blenheim House
         Fitzalan Court
         Newport Road
         Cardiff
         CF24 0TS
         Wales


REC PLANTATION: Fitch Cuts Rating on Class E Notes to BB
--------------------------------------------------------
Fitch Ratings downgraded REC Plantation Place Limited's junior
notes due 2016 and removed them from Rating Watch Negative.  The
notes are assigned a Negative Outlook.  The senior notes are
affirmed, with Outlook on the Class B notes changed to Negative
from Stable.

  -- GBP290.43 million Class A affirmed at 'AAA'; Stable Outlook

  -- GBP39.75 million Class B affirmed at 'AA'; Outlook revised to
     Negative from Stable

  -- GBP44.72 million Class C downgraded to 'A-' (A minus)
     from 'A'; off RWN; Negative Outlook assigned

  -- GBP39.75 million Class D downgraded to 'BBB-'
    (BBB minus) from 'BBB'; off RWN; Negative Outlook assigned

  -- GBP14.91 million Class E downgraded to 'BB' from 'BBB';
     off RWN; Negative Outlook assigned

The underlying single loan remains in default as both the A-note
and whole loan-to-value ratios continue to be in breach of their
respective covenants of 77.7% and 82.1%.  The loan's collateral, a
Grade A office property located in the City of London, showed a
further 7% decline in value in the latest quarterly valuation,
increasing the LTV to 93.9% on the A-note and 99.5% on the whole
loan.  These ratios take into consideration a GBP16.8m one-off
cash deposit from the borrower, held in escrow by the issuer.

The borrower has submitted a proposal to redeem part of the Class
A notes and has suggested the removal of the LTV covenant.  The
noteholders have yet to comment on this proposal.  Alternatives to
a restructuring include enforcement of the loan.  Fitch has been
informed by the servicer that the noteholders are not currently
able to force an acceleration of the loan and that enforcement
rights over the loan reside with the issuer.

Plantation Place remains fully let to 13 tenants, most of which
are either rated or considered to be investment-grade quality.  Of
the rental income, 72% is derived from leases expiring in 2027 or
thereafter.  The interest coverage ratio remains stable at 1.24x
on the A-note and 1.15x on the whole loan, above the covenants of
1.15x and 1.1x, respectively.  Despite the ongoing default, both
the A- and B-notes continue to amortize.  The loan remains in
primary servicing.

Fitch will continue to monitor the ongoing developments
surrounding the LTV covenant breach and possible cures, and
comment further once new information is available.  An updated
performance report is available on Fitch's subscription website.


ROL REALISATIONS: Appoints Joint Administrators from PKF
--------------------------------------------------------
Matthew Gibson and Jonathan Newell of PKF (UK) LLP were designated
Joint Administrators of Rol Realisations Ltd. on
Oct. 3, 2008.

The company can be reached through PKF (UK) LLP at:

         Sovereign House
         Queen Street
         Manchester
         M2 5HR
         England

The company rents, supplies and installs various equipments.


TAGGART HOMES: Names Joints Administrators from PwC
---------------------------------------------------
Garth Andrew Calow and Robert Birchall of PricewaterhouseCoopers
LLP were named joint administrators of Taggart Homes Carlisle Ltd.
on Oct. 23, 2008.

The company's address is:

         Taggart Homes Carlisle Ltd.
         12 Quays Reach
         Carolina Way
         Salford Quays
         Manchester
         M50 2ZY
         England


TATA STEEL: Fitch Affirms UK Unit's 'BB' LT Foreign Currency IDR
----------------------------------------------------------------
Fitch Ratings revised Tata Steel Limited and Tata Steel U.K. Ltd's
Outlook to Negative from Stable.  At the same time, the agency has
affirmed TSL's Long-term foreign currency Issuer Default Rating
(IDR) at 'BBB-' (BBB minus), National Long-term Issuer Rating at
'AAA(ind)', and TSUK's Long-term foreign currency IDR at 'BB'.

The Negative Outlook reflects Fitch's concerns on the ability of
parent Tata Sons Limited to support TSL given the sharp drop in
the market value of the former's investment holding in public
listed companies (primarily Tata Consultancy Services Limited), as
well as concerns on margin pressures at TSUK driven by the
economic slowdown in Europe, which has resulted in a sharp drop in
steel prices.  The agency continues to take a consolidated view on
TSL in line with its Parent and Subsidiary Rating Linkage
methodology -- with TSUK's rating benefiting from potential
parental support despite TSUK acquisition debt remaining non-
recourse to TSL.

When the ratings were assigned, Fitch had provided a one notch
uplift to TSL's Long-term foreign currency IDR and National Issuer
Rating, reflecting the support expected to be available from Tata
Sons Limited.  While Tata Sons Limited's credit profile continues
to remain strong and its willingness to provide support to TSL
remains unchanged due to TSL's flagship status, the ability to
provide this support, in Fitch's opinion, has weakened
substantially.  Fitch believes that a sustained deterioration in
Tata Sons Limited's ability to provide support, driven by market
value of its investments in public listed companies as outlined
above, remaining consistently below US$12 billion during the next
nine months, would act as a negative trigger for the ratings.

Fitch notes that continued lower steel prices across Europe
(including UK) could potentially impact TSUK's standalone
profitability and while the Indian operations would continue to
generate strong cash flows, the credit metrics for TSUK and TSL
could potentially deteriorate, leading to breach of the
consolidated net financial leverage trigger of 3.5x, resulting in
a negative rating action.  The agency however notes that TSL has
plans to raise substantial equity for meeting its investment
requirements and derisk the TSUK operations through captive raw
material linkages which could potentially provide downside
cushion.  While the capex/investment plans of USD10,957m for the
next three years are higher than earlier estimates, Fitch also
notes that greenfield projects in India continue to remain exposed
to regulatory risks leading to uncertainty on timing and are
somewhat discretionary in nature.  Derisking of the balance sheet
through these initiatives coupled with a sustained improvement in
Tata Sons Limited's ability to support TSL could potentially lead
to the Outlook reverting to Stable from Negative.

The ratings continue to reflect the strength of TSL's low cost
operations in India with captive sources of iron-ore and coal, the
high-end nature of TSUK's domestic operations allowing it to pass
raw material price increases to end consumers and an improving but
still moderate financial profile.  The consolidated performance in
FY08 benefited from a strong performance from its India and UK
operations (contributing 46% and 51% to overall EBITDA), resulting
in EBITDAR margins of 13.8% and a net debt/EBITDA of 2.7x.  The
profitability of TSUK's operations has benefited from the
continued improvement process which resulted in substantial cost
savings of USD600m in FY08 and is also expected to contribute
substantially in FY09 and FY10.  Fitch has also taken cognizance
of TSL's recent equity infusion of GBP250m into TSUK to mitigate
risks of a potential breach of covenant under its Secured Facility
Agreement, driven by higher working capital requirements on
account of the sharp increase in iron-ore and coal prices.

TSL is the flagship of the Tata Group and the sixth-largest steel
producer in the world.  TSL's revenue composition remains tilted
towards Europe which contributed 69% of revenues in FY08 with
India contributing 15%, Asia contributing12% and 5% from other
markets.

Fitch also affirmed the ratings on TSL and TSUK's debt
instruments:

TSL:

  -- Long Term Debt aggregating INR58.5bn: National Long-term
     Rating at 'AAA (ind)';

  -- Non-Convertible Debenture Issue of INR20bn: National Long-
     term Rating at 'AAA (ind)';

  -- Fund Based Cash Credit Limits of INR10.6bn and Non-Fund
     Based Limits of INR23.40bn: National Long- term Rating at
     'AAA (ind)';

  -- Fund Based Limits of INR7.25bn and Non-Fund Based Limits of
     INR7.6bn: National Short-term Rating at 'F1+(ind)'; and

  -- Commercial Paper/Short Term Debt of INR9.75bn: National
     Rating of 'F1+(ind)'.

TSUK and its subsidiaries:

  -- Senior Secured Bank Loan Facilities aggregating GBP 3.67bn:
     Long-term rating at 'BB+'.

At the same time, Fitch assigned a National Rating of 'AAA(ind)'
to TSL's proposed INR15bn non-convertible debenture program.


* Downturn Hampers Rescue of Ailing Businesses, PwC Survey Shows
----------------------------------------------------------------
The downturn has made it more difficult to rescue ailing
businesses according to 75% of respondents of a survey by
PricewaterhouseCoopers LLP of its Turnaround Director (TD) Panel.

The survey further indicates that businesses do not seem to have
learned lessons from the last downturn.  Almost 60% of TDs believe
that companies are failing to both recognize when they are
struggling and to bring in help early enough, according to the
first in a series of quarterly surveys carried out by PwC. TDs
have in fact revealed that they are being brought in at the same
point in a company's cycle as in previous downturns.

The findings, which were sought as part of PwC's Managing in a
Downturn campaign, reflect the views of more than 100 members of
the PwC Turnaround Director Panel that consists of senior
executives, many with specialist expertise in corporate rescue,
who can be introduced to a troubled business and take on an
executive role in its turnaround.

Richard Boys-Stones, partner, Business Recovery Services at
PricewaterhouseCoopers LLP, says: "These Turnaround Directors are
really at the sharp end of the current downturn.  They can see
trends and issues emerging before they trickle down into
mainstream thinking.  The increased complexity of capital and
stakeholder structures established in recent years means that this
downturn presents challenges not previously seen, currently making
it more difficult to turn a business around according to three
quarters of TDs that participated in the survey."

More than 83% of respondents anticipate a deterioration of the
economic situation over the next year, and the results show that
TDs do not believe we have seen the full effects of the downturn,
particularly on headline consumer spending and SMEs. Over half of
the Panel says the turnaround process is already taking longer
than six months ago, with the drying up of credit and greater
scrutiny from financial institutions being highlighted by most of
those surveyed.

Richard Boys-Stones, partner, Business Recovery Services at
PricewaterhouseCoopers LLP, concluded: "Clear visibility and
control over cash coupled with a practical realistic assessment of
different outcomes is essential.  If one message can be taken away
from this first survey, it is that managers need to be
increasingly decisive and act now to ensure the survival of their
business.

"PwC has developed a simple framework of '10 Fundamental
Priorities' that we believe businesses need to focus on if they
are to survive the downturn and leave themselves well positioned
for when the market improves.  A combination of PwC's wide
capability and additional turnaround executive experience is
supporting an increasing number of businesses."

           About PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides
industry-focused assurance, tax and advisory services.  It has
more than 16,000 partners and staff in offices around the UK.


* EU Service Sector Set to Contract, KPMG Survey Says
-----------------------------------------------------
The mood among EU service providers has darkened in the autumn as
the wider financial market turmoil intensifies and signs of a
worldwide downturn have grown.  The key development from the
latest KPMG Business Outlook Survey, which surveys around 2,800
service sector firms across the EU, is that the twelve-month
outlook for business activity has turned negative.  Following
expectations of weaker growth over the previous two surveys,
activity is now expected to contract on both the volume and
revenue measures.  Moreover, every non-price measure has fallen
into negative territory, including new business, employment,
profits, capital expenditure and outsourcing.

While the latest survey findings firmly point to the onset of
recession in the EU over the next twelve months, inflation
expectations have also retreated.  Total input costs for service
providers are still expected to rise overall, but at the weakest
rate in the survey history*.  This follows record high
expectations back in the spring when oil prices were still
climbing.  With reduced upward pressure on input costs and
declining demand conditions, service providers' expectations for
charge inflation also sank to a new low.

Outlook findings:

Confidence in the EU service sector economy regarding the outlook
for business activity over the next twelve months sank
dramatically in October to a record survey low.  The net balance
of the expected volume of business activity has fallen three times
in a row since April 2007 and now stands at -2.9 in the latest
period.  This signals that for the first time in the survey
history more service sector companies expect activity to decline
than those anticipating growth.  Similarly, business revenues are
forecast to decline over the next twelve months, with the net
balance plummeting from +23.8 to -7.2.

Overall pessimism regarding the twelve-month outlook for business
activity (both in terms of volumes and revenues) was displayed in
France, Spain and Ireland in October.  France registered the
lowest figure of -15.9, closely followed by Italy (-13.7).  In
Italy and the UK very modest positive expectations were expressed
for business activity, while German service providers were, on
average, neutral about the future outlook.

The latest survey findings highlighted expectations of falling
profits across the EU service sector economy over the next twelve
months.  The net balance fell sharply from +7.6 to -21.1, the
lowest figure to date.  Moreover, all six countries are
pessimistic regarding profit expectations, with the worst degree
of sentiment registered in Spain (-32.2).

With activity and revenues expected to decline and profits under
threat, service providers in the EU are set to cut workforces over
the next twelve months.  The net balance fell into negative
territory for the first time in October, to -14.4, from +12.2 in
April.  Pessimism is slightly less marked in the UK than the
Eurozone, where Ireland and Spain forecast especially steep job
losses (-26.5 and -26.2 respectively).  Service sector companies
are also expecting to cut back on capital investment as activity
declines and the wider availability of credit remains under threat
as a result of the worst financial crisis for eighty years.

A weaker climate of demand over the next twelve months is widely
expected to bring with it reduced inflationary pressures.  The net
balance of firms' total input costs dropped sharply to a new low
of +24.3, far surpassing the previous low of +43.0 recorded in
April 2006.  Outsourcing costs are expected to increase at the
weakest pace, followed by other non-staff costs.  The net balance
for staff costs was relatively high at +35.4, though this was
still a notable fall from April's figure of +56.5 and is the
lowest to date.  Service providers expect to raise selling prices
at a much weaker rate as a result, with the net balance falling to
a new low of +8.3.  Charges are expected to fall in Ireland (-6.8)
and across Post & Telecommunications and Financial Intermediation
sectors at the EU level.

Commenting on the latest survey findings, Andrew Smith, Chief
Economist, KPMG, said: "The extreme downturn in service sector
confidence =96- output, profits and employment are now all expected
to fall in the coming year =96- spells recession for the wider
economy as well.  The only saving grace is the collapse in
inflation expectations, leaving the door open for deeper interest
rate cuts in coming months."

                    About KPMG LLP (UK)

KPMG LLP (UK) -- http://kpmg.co.uk/-- provides professional
services including audit, tax, financial and risk advisory.  KPMG
in the UK has over 10,000 partners and staff working in 22 offices
and is part of a strong global network of members firms. As part
of KPMG Europe it has merged with its German and Swiss firms,
making it the largest integrated accounting firm in Europe.

                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR 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 Monday 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 constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  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.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.

                            *********


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 -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Pius Xerxes V. Tovilla, Valerie C. Udtuhan, Marites
O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, Marie
Therese V. Profetana and Peter A. Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *