TCREUR_Public/081119.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 19, 2008, Vol. 9, No. 230

                            Headlines

A U S T R I A

KOMMUNALKREDIT AUSTRIA: Fitch Junks Rating on Two Capital Notes


B E L G I U M

FORTIS BANK: S&P Corrects Error & Rates EUR2 Bil. Notes at 'BB'


G E R M A N Y

CONTAINER TRANSPORT: Claims Registration Period Ends December 3
EURAS TECHNOLOGY: Claims Registration Period Ends December 3
IDS PRODESIGN: Claims Registration Period Ends December 1
KUNSTSTOFFRECYCLING KODERSDORF: Claims Period Ends December 1
PFLEIDERER AG: Moody's Downgrades Corporate Family Rating to 'Ba3'

PHYSIO UND SPORT: Claims Registration Period Ends December 20
QUADRIFOGLIO VERWALTUNGS: Claims Registration Ends December 19


G R E E C E

ANTENNA TV: S&P Maintains 'B' Credit Rating on Nove Televizia Sale


I R E L A N D

SMURFIT KAPPA: Reports EUR48.9 Mln Net Profit in Third Qtr. 2008


I T A L Y

ALITALIA SPA: To Cut Flights Amid Strikes and Soaring Debts
IT HOLDING: Posts EUR10.1 Mln Net Loss in 9-Mos Ended Sept. 30
IT HOLDING: Consumer Spending Pressure Cues Moody's Junk Ratings
IT HOLDING: S&P Downgrades Corporate Rating to 'SD' from 'B-'


K A Z A K H S T A N

* S&P Confirms Counterparty Ratings on Kazakhstan's Five Banks


K Y R G Y Z S T A N

HIM TRANS: Creditors Must File Claims by December 10
TECHNO NIKOL-BISHKEK: Creditors Must File Claims by Dec. 10


N E T H E R L A N D S

FORTIS BANK: S&P Corrects Error & Rates EUR2 Bil. Notes at 'BB'


R U S S I A

EVRAZ GROUP: Seeks US$1.8 Bil. Loan on IPSCO Acquisition
IRKUTSKENERGO AO: S&P Downgrades Corporate Credit Rating to 'B-'
MOSCOW STARS: CB Moskommertsbank Rating Cut Cues Negative Outlook
RUSSIAN MORTGAGE: Fitch Changes Outlook to Stable after Russia's
TATNEFT OAO: Net Profit Up 11% to RUR38.7BB in January-September


T U R K E Y

* S&P Changes Outlook on 7 Turkish Financial Firms to Negative


U K R A I N E

AGROSTAR LLC: Creditors Must File Claims by November 29
ALPHA-RESOURCE LLC: Creditors Must File Claims by November 29
ENTERPRISE FORMPLAST: Creditors Must File Claims by November 29
EURO-BUILDING-PROJECT: Creditors Must File Claims by Nov. 29
GENING LLC: Creditors Must File Claims by November 29

INTER-BUILDING-INVESTMENT: Creditors Must File Claims by Nov. 29
KATERINOPOL PRODUCTION: Creditors Must File Claims by Nov. 29
KHAZHYN AGRICULTURAL: Creditors Must File Claims by November 29
KORVET LLC: Creditors Must File Claims by November 29
SPECIAL TECHNOLOGY: Creditors Must File Claims by November 29

TRUBEZH CJSC: Creditors Must File Claims by November 29
TURBOV KAOLIN: Creditors Must File Claims by November 29


U N I T E D   K I N G D O M

BE MOVED: Taps Joint Administrators from PKF
BRITISH AIRWAYS: Four Executives Appear in Court Over Price-Fixing
BRITISH AIRWAYS: Iberia Eyes Bigger Share of Merger
EIRLES TWO: Moody's Withdraws Junk Rating on Series 129 Notes
EYEWEAR HOLDINGS: Names Joint Administrators from Grant Thornton

HBOS PLC: Could Face Nationalization if Lloyds Takeover Fails
IRONWORKS LTD: Taps Joint Liquidators from PKF
KALMAR STRUCTURED: Moody's Junks Rating on EUR8.3MM Class C Notes
KEN WILSON: Names Joint Liquidators from Tenon Recovery
LANDSBANKI: Savers to Meet with Guernsey Authorities on Monday

LEHMAN BROTHERS: Administration More Complicated than Enron
M & S LTD: Names Joint Administrators from Tennon Recovery
MAWLAW 526 LTD: Appoints Joint Liquidators from KPMG
M B JOINERY: Taps Joint Liquidators from Baker Tilly
SPACE 2 LTD: Appoints Joint Administrators from KPMG

XTREME BRAND: Names Joint Liquidators from Tenon Recovery

* UK Company Winding Up Petitions Up 13% in Third Quarter 2008
* S&P Says UK Buy-To-Let Mortgage to Weaken in Economic Downturn
* Moody's Sees Weakening in EMEA Auto Loans Performance in Q3 2008


                         *********


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


KOMMUNALKREDIT AUSTRIA: Fitch Junks Rating on Two Capital Notes
---------------------------------------------------------------
Fitch Ratings downgraded Kommunalkredit Austria's two supplemen
tary capital notes to 'CCC+' from 'A+' and removed them from Rat
ing Watch Positive.  This rating action follows KA's decision to
defer coupon payments in 2009 following its recent announcement of
an anticipated loss for the current financial year.  A Recovery
Rating 'RR2' is assigned, reflecting superior recovery prospects
on these notes.

KA announced on Nov. 6, 2008 that it will defer coupon payments on
all instruments where distribution is linked to the generation of
an annual profit (Jahresuberschuss) including the above-mentioned
two issues (ISIN codes XS0270579856 and XS0284217709).

Both issues are cumulative and the four quarterly coupon payments
to be deferred in 2009 will be paid in 2010 if the bank generates
a profit (before movement in capital reserves) for the financial
year 2009.

KA is rated Long-term Issuer Default A+' and Short-term IDR 'F1',
both of which are on RWP.  Its other ratings are Individual 'F'
and Support '1'.  Its Support Rating Floor 'A+' is also on RWP.


=============
B E L G I U M
=============


FORTIS BANK: S&P Corrects Error & Rates EUR2 Bil. Notes at 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services corrected a technical error,
saying that the EUR2 billion mandatory convertible securities
issued by entities within the Belgian-Dutch bancassurance group
Fortis are rated 'BB'.  The debt ratings on various hybrid capital
instruments, including the MCS, were lowered to 'BB' from 'BBB'
and placed on CreditWatch with developing implications on Oct. 6,
2008, as indicated in S&P's article.

Due to an administrative error regarding the identities of certain
instruments and issuers, the lowering of the debt rating on the
MCS did not update or display accurately in S&P's database.  This
S&P's press release therefore corrects this mistake.

Fortis Bank Nederland N.V., Fortis Bank SA/NV, and holding
companies Fortis SA/NV and Fortis N.V. are co-obligors for the MCS
issued in 2007.  FBN is the primary co-obligor of this instrument,
which is booked in the Dutch bank's balance-sheet.

S&P expects to resolve the CreditWatch within the coming weeks.

                            Ratings List

   Fortis N.V.
   Fortis SA/NV

   -- Counterparty Credit Rating               BBB-/Watch Neg/A-3

   Fortis Bank Nederland (Holding) N.V.

   -- Counterparty Credit Rating                  A/Watch Dev/A-1

   -- EUR2 Billion Mandatory
      Convertible Securities *                       BB/Watch Dev

   Fortis Bank SA/NV

   -- Counterparty Credit Rating                  A/Watch Pos/A-1

   -- EUR3 Billion Convertible Equity-Linked
      Junior Subordinated Perpetual Hybrid
      (CASHES) **                                    BB/Watch Dev

* Fortis Bank Nederland N.V. is the primary co-obligor; Fortis
   Bank SA/NV, Fortis SA/NV, and Fortis N.V. are co-obligors.

** Issued by Fortis Bank SA/NV; Fortis SA/NV and Fortis N.V. are
   co-obligors.


=============
G E R M A N Y
=============


CONTAINER TRANSPORT: Claims Registration Period Ends December 3
---------------------------------------------------------------
Creditors of Container Transport GmbH & Co. KG have until
Dec. 3, 2008, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:50 a.m. on Jan. 7, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Hamburg
         Hall B 405
         Fourth Floor Annex
         Civil Justice Bldg.
         Sievkingplatz 1
         20355 Hamburg
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Stephan Neubauer
         Spitalerstrasse 4
         20095 Hamburg
         Germany

The District Court opened bankruptcy proceedings against the
company on Oct. 20, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Container Transport GmbH & Co. KG
         Attn: Erika Wehlen, Manager
         Bindfeldweg 36
         22459 Hamburg
         Germany


EURAS TECHNOLOGY: Claims Registration Period Ends December 3
------------------------------------------------------------
Creditors of EURAS Technology Planungs-, Vermittlungs- und
Marketinggesellschaft mbH have until Dec. 3, 2008, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 8:15 a.m. on Jan. 12, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Wetzlar
         Meeting Room 201
         Building B
         II. Stick
         Wetherstr. 1
         35578 Wetzlar
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Janine Pfaff
         GF: 54
         Wertherstrasse 14 A
         35578 Wetzlar
         Germany
         Tel: 06441/9 48 20
         Fax: 06441/94 82 22
         E-mail: kanzlei@wsr-net.de

The District Court opened bankruptcy proceedings against the
company on Oct. 12, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         EURAS Technology Planungs-, Vermittlungs- und
         Marketinggesellschaft mbH
         Baugasse 3
         35578 Wetzlar

         Attn: Zoran Kostic, Manager
         Schloss 1
         61250 Usingen
         Germany


IDS PRODESIGN: Claims Registration Period Ends December 1
---------------------------------------------------------
Creditors of IDS ProDesign GmbH have until Dec. 1, 2008, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10.00 a.m. on Jan. 15, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Nuernberg
         Meeting Hall 152/I
         Flaschenhofstr. 35
         Nuernberg
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Volker Boehm
         Rothenburger Strasse 241
         90439 Nuernberg
         Germany

The District Court opened bankruptcy proceedings against the
company on Oct. 20, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         IDS ProDesign GmbH
         Attn: Jean Kasperzack, Manager
         Erlenstegenstrasse 58
         90491 Nuernberg
         Germany


KUNSTSTOFFRECYCLING KODERSDORF: Claims Period Ends December 1
-------------------------------------------------------------
Creditors of Kunststoffrecycling Kodersdorf GmbH have until
Dec. 1, 2008, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:00 a.m. on Jan. 12, 2008, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Dresden
         Hall D131
         Olbrichtplatz 1
         01099 Dresden
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Ralf Klinge
         Koenigsbruecker Strasse 33
         01099 Dresden
         Germany

The District Court opened bankruptcy proceedings against the
company on Jan. 20, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Kunststoffrecycling Kodersdorf GmbH
         Attn: Torsten Werner, Manager
         geboren 1976
         Torgaer Str. 14
         02923 Kodersdorf
         Germany


PFLEIDERER AG: Moody's Downgrades Corporate Family Rating to 'Ba3'
------------------------------------------------------------------
Moody's Investors Service downgraded Pfleiderer AG's Ba2 corporate
family rating to Ba3 and the B1 Backed Junior Subordinate Rating
of its subordinated guaranteed finance subsidiary Pfleiderer
Finance BV to B2.  This rating action concludes the review which
was initiated on July 31, 2008.

The downgrade has been prompted by (1) Pfleiderer's weaker than
initially by Moody's expected results for the first 9 months 2008,
(2) the weak outlook for the markets Pfleiderer is serving going
into 2009 which may limit Pfleiderer's ability to reduce its
leverage over time, (3) the now achieved high leverage ratio,
measured as adjusted gross debt/EBITDA (debt adjusted to include
50% of Pfleiderer's hybrid bond, operating leases and pension
liabilities) as per last twelve months per September 2008 of 4.3x,
and FFO/Net Debt of 12%.

These ratios are not commensurate with a Ba2 rating any more and
since Pfleiderer's markets are expected to remain weak or even
weaken further and given protracted weaknesses in equity markets
Moody's assumes that there are limited possibilities for
Pfleiderer to improve its capital structure in the intermediate
term.  Pfleiderer's ongoing and implemented cost reduction
measures and capex reduction program should help the ratios at
least not to weaken further.  The initial rating assignment of Ba2
had assumed that Pfleiderer will improve its leverage figures
(cash flow to debt and debt to EBITDA) over time following the
positive contribution from the Pergo acquisition.

"The outlook of the ratings is negative, reflecting the increased
uncertainties which Pfleiderer is facing going forward" said
Matthias Hellstern, Moodys' lead analyst for Pfleiderer.  The
negative outlook also considers the heightened challenge for
Pfleiderer to remain in compliance with financial covenants under
its senior credit facilities.  Moody's notes that Pfleiderer's
financial ratios so far have been in compliance with its loan
agreements.

Moody's would downgrade the ratings if Pfleiderer in the short to
medium term would fail to generate positive free cash flows and
use the proceeds to reduce leverage, and if the debt/EBITDA
(currently 4.3x) would continue to weaken further.

On the positive side, Moody's notes that the expected decline in
raw material prices and input costs as well as the implementation
of cost cutting measures should help the company offsetting lower
volumes in its markets and that Pfleiderer's market position and
cost leadership should support the company in the current industry
downturn.

Moody's previous rating action on Pfleiderer was to put the rating
on review for possible downgrade on July 31, 2008.

Downgrades:

Issuer: Pfleiderer AG

  -- Corporate Family Rating, Downgraded to Ba3 from Ba2

Issuer: Pfleiderer Finance B.V.

  -- Junior Subordinated Regular Bond/Debenture, Downgraded to B2
     from B1

Assignments:

Issuer: Pfleiderer AG

  -- Probability of Default Rating, Assigned Ba3

Issuer: Pfleiderer Finance B.V.

  -- Junior Subordinated Regular Bond/Debenture, Assigned LGD6,
     92%

Outlook Actions:

Issuer: Pfleiderer AG

  -- Outlook, Changed To Negative From Rating Under Review

Issuer: Pfleiderer Finance B.V.

  -- Outlook, Changed To Negative From Rating Under Review

Headquartered in Neumarkt/Germany, Pfleiderer AG, is one of the
leading manufacturers of engineered wood in Europe and North
America.  Group sales and operating result in 2007 amounted to
EUR1.8 billion and EUR137 million respectively.


PHYSIO UND SPORT: Claims Registration Period Ends December 20
-------------------------------------------------------------
Creditors of Physio und Sport GmbH have until Dec. 20, 2008, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:15 a.m. on Jan. 23, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Marburg/Lahn
         Hall 154
         District Court Building
         Universitatsstrasse 48
         35037 Marburg/Lahn
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Robert Schiller
         Fach 43
         Hedwig-Jahnow-Strasse 18
         35037 Marburg
         Germany
         Tel: 06421/30991-0
         Fax: 06421/30991-11

The District Court opened bankruptcy proceedings against the
company on Oct. 17, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Physio und Sport GmbH
         Bahnhofstrasse 44 d
         35282 Rauschenberg
         Germany

         Attn: Gerald Horeis, Manager
         Wolfstall 14
         42799 Leichlingen
         Germany


QUADRIFOGLIO VERWALTUNGS: Claims Registration Ends December 19
--------------------------------------------------------------
Creditors of Quadrifoglio Verwaltungs GmbH have until
Dec. 19, 2008, to register their claims with court-appointed
insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Jan. 9, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Hameln
         Hall 106
         Zehnthof 1
         31785 Hameln
         Germany

Claims set out in the insolvency manager's report will be verified
by the court during this meeting.  Creditors may also constitute a
creditors' committee or opt to appoint a new insolvency manager.

The insolvency manager can be reached at:

         Dr. Rainer Eckert
         Arthur-Menge-Ufer 5
         30169 Hannover
         Germany
         Tel: 0511/26094450
         Fax: 0511/26094451
         E-mail: eckert-hannover@rae-eckert.de
         Web site: www.rae-eckert.de

The District Court opened bankruptcy proceedings against the
company on Oct. 17, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Quadrifoglio Verwaltungs GmbH
         Attn: Siegfried Sowa, Manager
         Marktstrasse 42
         30890 Barsinghausen
         Germany


===========
G R E E C E
===========


ANTENNA TV: S&P Maintains 'B' Credit Rating on Nove Televizia Sale
------------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit and all debt ratings on Greek broadcaster Antenna
TV S.A. following the completion of the group's sale of its
Bulgarian TV business, Nova Televizia, to Modern Times Group MTG
AB for about EUR621 million in cash.  The outlook is stable.

At the same time, S&P removed the ratings from CreditWatch with
developing implications, where they had been placed on July 31,
2008.

"The affirmation mainly reflects the group's very strong liquidity
position following the receipt of the Nova TV sale proceeds, which
mitigates the poor operating and financial performance of the
Greek Antenna channel," said Standard & Poor's credit analyst
Melvyn Cooke.

Liquidity will be a prime factor in maintaining the current
ratings once the sale proceeds are used up, as Antenna is
generating operating losses and, with Nova TV, the group has lost
operating diversity and its major EBITDA and cash flow
contributor.

"The stable outlook reflects S&P's expectations, that, despite
material uncertainties on for what and when the group will use the
sale proceeds, the 'B' rating encapsulates Antenna's most likely
medium-term credit profile," said Mr. Cooke.

The outlook also assumes that any acquisition Antenna makes using
its sale proceeds would replace Nova TV with an asset or assets of
similar creditworthiness, while maintaining adequate liquidity, so
as to comfortably absorb negative free cash flow generation until
operating performance at the Antenna TV channel is turned around.

Downward rating pressure may materialize if the group uses most of
its cash to buy or invest in assets with lower credit quality that
require substantial funding and/or financial support, thereby
significantly weakening liquidity.  Similarly, undertaking
material shareholder distributions while failing to turn around
the Antenna TV channel, which would also negatively impact
liquidity, would pressure the ratings.

Rating upside, while not likely in the medium term in S&P's view,
may materialize if the group acquires a robust cash-generative
asset while maintaining sufficiently robust liquidity.


==============
I R E L A N D
=============


SMURFIT KAPPA: Reports EUR48.9 Mln Net Profit in Third Qtr. 2008
----------------------------------------------------------------
Smurfit Kappa Group plc on Wednesday, Nov. 12, released unaudited
financial results for the 3 months and 9 months ending September
30, 2008.

For the nine months to September 30, 2008, the Group reported net
profit of EUR179 million compared to net profit of EUR57.2 million
for the nine months to September 30, 2007.

For the three months to September 30, 2008, the Group reported net
profit of EUR48.9 million compared to net profit of EUR89.1
million for the three months to September 30, 2007.

At September 30, 2008, the Group's balance sheet showed EUR8.9
billion in total assets, EUR6.6 billion in total liabilities and
EUR2.3 billion in total shareholders' equity.

        2008 First Nine Months|Financial Performance

Revenue of EUR5.4 billion in the first nine months of 2008 was
flat compared to the same period in 2007.  However, allowing for
the negative impact of currency of EUR91 million and net disposals
and closures of EUR28 million, revenue shows an underlying
increase of EUR96 million, the equivalent of almost 2%.

EBITDA of EUR745 million in the first nine months of 2008 was
EUR44 million, or 6% lower than in the comparable
period in 2007, mainly reflecting the margin pressure experienced
in the Group's containerboard system, primarily in the third
quarter, offset by synergies and cost take-out.

Allowing for the impact of currency, net disposals and closures,
the underlying EBITDA decrease would have been EUR32 million, the
equivalent of 4%.

           2008 Third Quarter|Financial Performance

Revenue of EUR1,753 million in the third quarter of 2008
represents a 4% decrease, or EUR76 million, compared with revenue
of EUR1,829 million in the third quarter of 2007.  Allowing for
the negative impact of currency of EUR31 million offset by net
acquisitions, disposals and closures of EUR2 million, revenue
shows an underlying decrease of EUR47 million, the equivalent of
3%.

At EUR231 million for the third quarter, EBITDA was EUR44 million
lower than in the same period last year.  This includes a negative
currency impact of EUR5 million.  On a comparable basis, EBITDA
was lower by EUR39 million, the equivalent of 14% year-on-year.

Compared to the second quarter of 2008, EBITDA decreased by EUR26
million in the third quarter, the equivalent of 10%.  Excluding
the impact of currency, disposals and closures, EBITDA decreased
by EUR28 million, the equivalent of 11% quarter-on-quarter.

                 Performance Review & Outlook

Gary McGann, Smurfit Kappa Group CEO, commented: "The Group is
pleased to report a strong free cash flow performance of EUR226
million in the first nine months of 2008, double the levels of the
corresponding period in 2007.  Net debt was significantly reduced
over the period.

This positive outcome primarily reflects the benefits of the
Group's integrated model, the resilience of its downstream
corrugated business, the superior profitability of its growing
Latin American operations and its leading Kraftliner presence
across Europe, a market positively influenced by the recent
strengthening of the US$.

In the current credit market environment, the Group continues to
benefit from its low cost of financing and long term debt profile
with no material maturity in the next four years.  The Group also
benefits from strong liquidity, with approximately EUR730 million
of cash on its balance sheet and unused committed credit lines of
approximately EUR600 million.

As indicated since its first quarter 2008 report, the Group
expects conditions to remain challenging for the remainder of the
year, characterized by the slowdown in corrugated demand and
pressure on pricing.  Against that backdrop, the Group is pleased
to confirm that it remains on target to deliver the expected level
of financial performance in 2008.

While declining interest rates, a stronger dollar, further
capacity rationalization decisions and increased financing risk
for the announced new capacity are potentially positive factors as
we look forward, nonetheless the Group expects a continuation of
tough operating conditions for 2009.  In that context, to further
increase its cash flow generation capability and to maximize its
debt paydown through the cycle, the Group will progressively
reduce its capital expenditure from current levels."

                About Smurfit Kappa Group

Headquartered in Dublin, Ireland, Smurfit Kappa Group --
http://www.smurfit-group.com/-- manufactures containerboard
containerboard and converts it into corrugated cases, folding
cartons, paper sacks, tubes, and composite cans. Other products
include boxboard, sack kraft paper, and printing and writing
paper.  The company produces 6 million tons of paper annually
and has 300 facilities worldwide.  In Latin America, the company
operates in Argentina, Brazil, Chile, Colombia, Costa Rica,
Dominican Republic, Ecuador, Mexico and Venezuela.

                           *    *    *

Smurfit Kappa Group plc continues to carry Moody's Investors
Service's Ba3 corporate family rating with positive outlook.
Moody's changed the outlook to positive from stable in
June 2008.

Smurfit also carries Standard & Poor's Rating Services' 'BB'
long-term corporate credit ratings with stable outlook.  S&P
raised the group's long-term corporate credit ratings to 'BB'
from 'BB-' in April 2008.


=========
I T A L Y
=========


ALITALIA SPA: To Cut Flights Amid Strikes and Soaring Debts
-----------------------------------------------------------
Alitalia SpA's bankruptcy administrator Augusto Fantozzi said the
carrier will cut about 100 flights a day until Dec. 1, 2008, when
investor group Compagnia Aerea Italiana is expected to start
operating the new airline, Bloomberg News reported citing daily la
Repubblica.

Separately, Agence France-Presse reported Alitalia's debts have
soared to some EUR2.3 billion as a pilot and air crew strike
caused canceled flights.  AFP said Alitalia pilots and other staff
are striking in protest at CAI's takeover deal.

According to AFP, Mr. Fantozzi told RAI television he had "around
two billion in ordinary debt for the supply of goods and
services," before taking into account a EUR300 million government
loan.

                          About Alitalia

Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina.  The Italian
government owns 49.9% of Alitalia.

As reported in the TCR-Europe on November 7, 2008, Alitalia S.p.A.
filed for Chapter 15 protection with the U.S. Bankruptcy Court in
the Southern District of New York.  Italy's national airline
experienced financial difficulties for a
number of years caused, in large measure, by a combination of
competition from low-cost air carriers, poor management and
onerous union obligations, according to papers filed with the
court.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million in
2000 and 2001 respectively.  Alitalia posted EUR93 million in net
profits in 2002 after a EUR1.4 billion capital injection.  The
carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.

In the petition filed October 29, 2008, Prof. Augusto Fantozzi,
the appointed administrator, said the airline's financial
difficulties have been and exacerbated by spiraling fuel prices.

On Aug. 29, 2008, Alitalia declared insolvency and filed for
commencement of extraordinary administration procedure at the
Tribunal of Rome.  Italian Prime Minister Silvio Berlusconi
appointed Mr. Fantozzi as extraordinary commissioner.
Under the Bankruptcy Bill, the Administrator has supplanted the
directors and other management of Alitalia.


IT HOLDING: Posts EUR10.1 Mln Net Loss in 9-Mos Ended Sept. 30
--------------------------------------------------------------
The Board of Directors of IT Holding S.p.A., on Thursday,
Nov. 13, approved the interim report at September 30, 2008:

    * Net revenues of EUR468.0 million compared to
      EUR502.5 million in 9M07;

    * EBITDA of EUR83.2 million from EUR98.7 million in 9M07.

               9M08 Financial Highlights

In the first nine months of 2008, the Group's net revenues
amounted to EUR468.0 million compared to EUR502.5 million for the
same period of 2007.  The factors responsible for this decline
include the slowing-down of the economy in general, which led to a
squeeze in consumption on the luxury goods market, and for our
Group in particular led to a Fall/Winter 2008/2009 order
collection that is slightly down on the same season of last year.
Lastly, at constant exchange rates, the turnover of the first nine
months of 2008 would equal EUR477 million approx. (-5.1% compared
to the first nine months of 2007).

In terms of geographical distribution of revenues, the main
markets registered a contraction, while the revenues in the Rest
of the World countries registered an increase of 6.9%, compared to
the corresponding period of the previous year.  In particular, the
Middle East recorded a 4.2% increase year on year.

EBITDA equaled EUR83.2 million compared to EUR98.7 million in
9M07, showing a reduction both in absolute terms and as a
percentage of revenues, from 19.6% in 9M07 to 17.8%.  EBITDA for
the first nine months of 2008 includes an extraordinary provision
for legal disputes entirely out of the ordinary.  If this
provision is added back, the EBITDA margin for the period is
18.4%.  EBITDA of the first nine months of 2007 benefited from the
extraordinary income, due to the valuation of the severance
indemnity, without which the incidence on revenues for the period
would have been 19.3%.  Consequently, the comparison in terms of
profits deriving from ordinary operations showed a result that
decreased by 1 percentage point in 9M08 compared to the same
period of 2007.

Operating result (EBIT) equaled EUR27.9 million compared to
EUR45.9 million in the corresponding period of the previous year,
due to the changes mentioned above.

The pre-tax result substantially broke even, from EUR21.2 million
in 9M 2007 to EUR-0.1 million.  This result is affected by the
overheads structure (mainly staff costs and rents), which has a
negative impact on the profit margin, due to the lower turnover.

The consolidated net result showed a net loss of EUR10.1 million,
compared to a net profit of EUR6.6 million in the same period of
2007.

Compared to September 30, 2007 net debt fell by EUR57.0 million,
decreasing to EUR295.4 million from EUR352.4 million at the same
date a year earlier, due to a similar reduction in net working
capital.

"The results for the first nine months of 2008 –- noted Tonino
Perna, Chairman and Chief Executive Officer of the IT Holding
Group -– have been strongly influenced by the negative economic
situation, which has directly affected all the markets on which we
are present."

"In 2008 the Group, in view of the difficult situation and of the
Spring/Summer 2009 order collection season –- continued Perna –-
expects consolidated revenues down by approximately 8% year on
year and EBITDA margin of 15-16%."

Headquartered in Milan, Italy, IT Holding S.p.A.
-- http://www.itholding.it/-- controls a group of companies
that design, produce and distribute high-quality products under
owned brands -- Ferre, Malo, Exte -- as well as under license
agreements -- D&G, Versus, Versace Jeans Couture, Just Cavalli,
C'N'C Costume National.  Worldwide distributing network includes
29 directly operated stores, 111 other mono-brand stores and
over 4,000 highly selected department and specialty stores.  IT
Holding has over 1,700 employees.  It went public on November
1997 and its shares are traded on Milan Stock Exchange.

                      *     *     *

As reported in the TCR-Europe on Oct. 1, 2008, Standard & Poor's
Ratings Services revised its outlook to negative from stable on
Italy-based fashion company IT Holding SpA, reflecting a
deterioration in credit protection metrics.  At the same time,
Standard & Poor's affirmed its 'B-' long-term corporate credit
rating on the company.

In addition, S&P raised its senior unsecured issue rating on the
EUR185 million senior secured notes issued by IT Holding Finance
S.A. to 'CCC+' from 'CCC'.  The rating is one notch below the
corporate credit rating on IT Holding, as opposed to two notches
previously, reflecting a significantly reduced amount of priority-
ranking debt in the company's capital structure.  The recovery
rating was also revised to '5' from '6', indicating S&P's
expectation of modest (10%-30%) recovery for senior noteholders in
the event of a payment default.

As reported in the TCR-Europe on Sept. 18, 2008, Moody's Investors
Service affirmed the B3 Corporate Family Rating of IT Holding
S.p.A. and the B3 senior secured rating on the notes due 2012
issued by IT Holding Finance S.A. and changed the outlook on all
ratings from stable to negative.  The rating action reflects the
weakening operating performance of the company over recent
quarters in light of increasing concerns on consumer spending in
general and the potential impact on the company's profitability
over the short term.


IT HOLDING: Consumer Spending Pressure Cues Moody's Junk Ratings
----------------------------------------------------------------
Moody's Investors Service downgraded IT Holding SpA Corporate
Family Rating and Probability of Default Rating to Caa1 from B3,
and the Senior Secured rating on the EUR 185 million notes due
2012 issued by IT Holding Finance SpA to Caa2 (LGD4, 69%) from B3.
The ratings are on review for further possible downgrade.

"This rating action reflects ongoing pressure on consumer
spending, due to the generally weak economic environment and high
uncertainty on consumer confidence, and the negative impact on IT
Holding operating performances so far during the year, and the
expectation that the company's key credit metrics might remain in
line with a Caa rating at best for the next twelve months", says
Paolo Leschiutta, Vice President at Moody's and lead analyst for
IT Holding.  "Moody's also notes the deteriorating liquidity
profile of the company as it continues to rely on receiving bank
support at time when the current conditions in the financial
markets remain unsettle and further extension of ongoing support
might be more challenging for the company".

"Given the ongoing economic slowdown and the uncertainty related
to the company's liquidity profile in connection with the current
distress in the global capital markets, ratings have been placed
under review for further possible downgrade", explains Mr.
Leschiutta.

The review will focus on (i) the company's capability to secure
proper financing needed to invest in the day to day activity and
to face pending debt maturities (including the EUR9.4 million debt
repayment delayed till the Dec. 22, 2008), (ii) the company's line
of actions to restore the operating performances at core
businesses, (iii) the likelihood of further deterioration in
consumer spending in general and in the luxury apparel segment in
particular, and (iv) the expected credit profile of IT Holding
going forward to monitor whether this will remain supportive of
the business risk profile of the company.

The last rating action on IT Holding was on the Sept. 16, 2008
when Moody's changed the outlook on all ratings to negative.

Ratings affected by this action are:

  - Corporate Family Rating and Probability of Default Rating
    downgraded to Caa1 from B3;

  - Senior secured rating on the EUR 185 million notes due 2012
    downgraded to Caa2 (LGD4, 69%) from B3;

Based in Italy, IT Holding S.p.A. is an European leading operator
in the branded apparel and accessories market mainly focused on
the young lines segment.  During the first nine months ended
September 2008, IT Holding reported EUR468 million of consolidated
net revenues and EUR38.2 million of EBITDA (adjusted for
investments in collection development during the period).


IT HOLDING: S&P Downgrades Corporate Rating to 'SD' from 'B-'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Italy-based fashion company IT Holding SpA to
'SD' from 'B-'.  At the same time, the senior unsecured debt
rating on the EUR185 million senior secured notes issued by IT
Holding Finance S.A. was lowered to 'C' from 'CCC+'.  The recovery
rating on the notes is unchanged at'5', indicating S&P's
expectation of modest (10%-30%) recovery for senior noteholders in
the event of a payment default.  The rating actions reflect the
announcement by ITH on Nov. 14 that it has requested a deferral of
a EUR9.4 million principal payment on its unrated bank loan that
fell due on Oct. 20, 2008.

"Standard & Poor's has lowered the corporate credit rating on ITH
to 'SD' as the due date of ITH's bank loan payment has passed and
the payment was missed; S&P's default definitions include payment
defaults on both rated and unrated financial obligations," said
Standard & Poor's credit analyst Diego Festa.  "ITH has, however,
confirmed that the payments on the senior secured notes remain
current, which is why S&P see this default as selective.  If the
company were to obtain consent from bank lenders to postpone the
repayment, S&P would expect to reinstate S&P's issuer credit
rating to 'CC' or above."

In the 12 months ended September 2008, ITH's ratio of adjusted
EBITDA to interest was 1.0x, below S&P's guideline of 1.5x.  The
quarter to Sept. 30, 2008, proved to be more challenging than
expected, with net sales down 7% year on year, and EBIT down by
39% in the same period.  The plunge in profits reflected the
negative effect of ITH's relatively high operational gearing in a
declining sales environment: In the third quarter ended September
2008, the company's primary fixed costs--personnel, investments in
collection development, and rents--accounted for more than 40% of
total cash expenses, up from about 30% one year earlier.

Based on the order book for the spring/summer 2009 collections,
management has revised its guidance for 2008, with revenues
expected to decline by 8% year on year, and EBITDA expected to be
in the range of EUR88 million-EUR95 million (EUR116 million in
2007).

GTP Holding SpA, the parent company that indirectly owns ITH
through PA Investments S.A., is in negotiations with a Chinese
industrial group on possible financial support, and commercial and
manufacturing partnership agreements with reference to the Asian
market.  These negotiations are not finalized and details of the
transaction have not yet been disclosed.

In addition, ITH has said that it has failed to meet the formal
conditions to draw on its EUR30 million loan facility with Natixis
S.A. (A+/Stable/A-1).


===================
K A Z A K H S T A N
===================


* S&P Confirms Counterparty Ratings on Kazakhstan's Five Banks
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its long- and short-
term counterparty credit ratings on the five largest private
sector banks in the Republic of Kazakhstan (foreign currency BBB-
/Negative/A-3, local currency BBB/Negative/A-3), namely BTA Bank
J.S.C. (BTA, 'BB/B'), Kazkommertsbank (JSC) (KKB, 'BB/B'), Halyk
Savings Bank of Kazakhstan (Halyk, 'BB+/B'), Alliance Bank JSC
(Alliance, 'B+/B'), and ATF Bank (ATF, 'BB+/B').  At the same
time, Standard & Poor's revised the outlook on ATF to negative
from stable.  The outlooks on the other four banks remain
negative.

The rating actions follow the recently announced government
support measures that reduce the immediate downgrade pressure on
BTA, KKB, Halyk, and Alliance.  For Alliance, and similar to these
other three banks, S&P now gives greater weight for potential
government support in the ratings.  The government recently
explicitly identified Alliance as a systemically important bank
and included it in its support program.  Some uncertainties remain
regarding the inclusion of other banks--including ATF, majority
owned by UniCredit, and CenterCredit Bank (not rated), partly
owned by Kookmin Bank--under this scheme.

Reflective of continued funding and liquidity challenges and asset
quality deterioration, most of S&P's outlooks on financial
institutions in Kazakhstan remain negative.  This outlook revision
on ATF reflects these concerns about factors that put downward
pressure on the bank's stand-alone creditworthiness.  The long-
term rating on ATF includes a three-notch uplift from its stand-
alone credit quality for expected parental support, resulting from
its majority ownership by Italian bank UniCredit SpA
(A+/Negative/A-1).

The Kazakh government announced in late October a series of
support actions to sustain the stability of the banking sector and
the economy.  The most significant support measures include:

  -- Some capital injections into the largest private sector banks
     (up to US$5 billion),

  -- Liquidity support for corporations and small and midsize
     enterprises (US$5 billion),

  -- Lowering of obligatory reserve requirements,

  -- Tightening of capital requirements,

  -- A seven-fold increase in the maximum guarantee on retail
     deposits (to KZT5 million, or more than US$40,000,
     from KZT700,000) and,

  -- Extending refinancing possibilities with the National Bank of
     Kazakhstan.

These measures fit with S&P's classification of Kazakhstan as an
"interventionist" country regarding its support of systemically
important private banks.  As such, the long-term ratings on KKB,
BTA, Halyk, and Alliance are one notch higher than their stand-
alone creditworthiness.  The government has proposed to invest, in
the form of common, preferred shares and subordinated debt, at
least US$300 million in KKB, US$2.3 billion in BTA, US$500 million
in Halyk, and US$370 in Alliance.

Although the size of the so-called capitalization program is
significant, representing almost 5% of Kazakhstan's GDP or total
banking system assets, Standard & Poor's understands that the
majority of these funds will consist of subordinated debt, which
S&P do not take into account in S&P's capital assessment.
Therefore, this will most likely bring these banks' adjusted
common equity up by only about 10%-15%.  As a result, the
government may take up to a 25% stake in each of these banks,
unless current shareholders or new investors decide to subscribe
to the capital increases.

Although S&P expects this process to take at least a few months,
these funds should soon be placed as deposits with the banks.  S&P
does not expect any major shifts in the banks' strategic
development, and the government has announced its plans to divest
these investments in the coming years once the banking sector
tension eases considerably.

Although smaller banks should gain a wider access to the National
Bank of Kazakhstan refinancing window and government deposits, the
government support plan risks putting additional pressure on them.
Smaller institutions are likely to be challenged to maintain
customer confidence and meet more conservative regulatory capital
requirements in the coming months.

S&P currently sees no tangible signs of banking sector recovery
and believe that the resolution of the problems will be a lengthy
process.  At the same time, S&P acknowledge Kazakh banks' efforts
to increase their provisioning needs and better recognize problem
loans.  Although Kazakh banks have adapted swiftly and effectively
to the radically altered economic and banking environment, S&P
feels that the prolonged and deepening dislocation is eroding
their creditworthiness.  The economic environment is characterized
by a deep-seated global liquidity crisis and a domestic economic
slowdown, both of which continue to erode banks' liquidity levels
and asset quality.  S&P estimates "loans under stress" at 20% for
the banking sector, and provisioning coverage is only slowly
approaching this level.  On a positive note, the expected capital
increases should improve banks' capitalization in the near future.

                           Ratings List

                          Outlook Action

   * ATF Bank
                              To               From
                              --               ----
Counterparty credit rating   BB+/Negative/B   BB+/Stable/B

                        Ratings Affirmed

   * BTA Bank J.S.C.
   * Kazkommertsbank (JSC)

                              To               From
                              --               ----
Counterparty credit rating    BB/Negative/B    BB/Negative/B

   * Halyk Savings Bank of Kazakhstan

                              To               From
                              --               ----
Counterparty credit rating    BB+/Negative/B   BB+/Negative/B

   * Alliance Bank JSC

                              To               From
                              --               ----
Counterparty credit rating    B+/Negative/B    B+/Negative/B


===================
K Y R G Y Z S T A N
===================


HIM TRANS: Creditors Must File Claims by December 10
----------------------------------------------------
LLC Him Trans Stroy has declared insolvency.  Creditors have until
Dec. 10, 2008, to submit written proofs of claims.

Inquiries can be addressed to (0-772) 31-81-70.


TECHNO NIKOL-BISHKEK: Creditors Must File Claims by Dec. 10
-----------------------------------------------------------
LLC Techno Nikol-Bishkek has declared insolvency.  Creditors have
until Dec. 10, 2008, to submit written proofs of claims to:

         LLC Techno Nikol-Bishkek
         Lushihin Str. 99a
         Bishkek
         Kyrgyzstan


=====================
N E T H E R L A N D S
=====================


FORTIS BANK: S&P Corrects Error & Rates EUR2 Bil. Notes at 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services corrected a technical error,
saying that the EUR2 billion mandatory convertible securities
issued by entities within the Belgian-Dutch bancassurance group
Fortis are rated 'BB'.  The debt ratings on various hybrid capital
instruments, including the MCS, were lowered to 'BB' from 'BBB'
and placed on CreditWatch with developing implications on Oct. 6,
2008, as indicated in S&P's article.

Due to an administrative error regarding the identities of certain
instruments and issuers, the lowering of the debt rating on the
MCS did not update or display accurately in S&P's database.  This
S&P's press release therefore corrects this mistake.

Fortis Bank Nederland N.V., Fortis Bank SA/NV, and holding
companies Fortis SA/NV and Fortis N.V. are co-obligors for the MCS
issued in 2007.  FBN is the primary co-obligor of this instrument,
which is booked in the Dutch bank's balance-sheet.

S&P expects to resolve the CreditWatch within the coming weeks.

                            Ratings List

   Fortis N.V.
   Fortis SA/NV

   -- Counterparty Credit Rating               BBB-/Watch Neg/A-3

   Fortis Bank Nederland (Holding) N.V.

   -- Counterparty Credit Rating                  A/Watch Dev/A-1

   -- EUR2 Billion Mandatory
      Convertible Securities *                       BB/Watch Dev

   Fortis Bank SA/NV

   -- Counterparty Credit Rating                  A/Watch Pos/A-1

   -- EUR3 Billion Convertible Equity-Linked
      Junior Subordinated Perpetual Hybrid
      (CASHES) **                                    BB/Watch Dev

* Fortis Bank Nederland N.V. is the primary co-obligor; Fortis
   Bank SA/NV, Fortis SA/NV, and Fortis N.V. are co-obligors.

** Issued by Fortis Bank SA/NV; Fortis SA/NV and Fortis N.V. are
   co-obligors.


===========
R U S S I A
===========


EVRAZ GROUP: Seeks US$1.8 Bil. Loan on IPSCO Acquisition
--------------------------------------------------------
Evraz Group SA has requested a US$1.8 billion loan from state bank
Vnesheconombank
to refinance debt incurred to acquire Canadian steel pipe maker
IPSCO, Reuters reports citing Moscow-based newspaper Vedomosti.

Few days before, Evraz secured a US$364 million one-year loan from
state-controlled VTB Bank to pay taxes, Reuters said in a Nov. 13
report.

Reuters recalls Evraz has said that it is cutting production and
capital expenditures at a number of its plants due to the global
financial crisis, and may be forced to cut production within
Russia by up to a quarter this month.  Its European and North
American operations are not to be affected, Reuters notes.

Vnesheconombank, according to Reuters, has been entrusted by the
Kremlin with the task of distributing a US$50 billion rescue
package to help Russian companies refinance a total US$120 billion
of Western loans by the end of 2009.

VTB Bank meanwhile operates in the commercial banking sector.

                         About Evraz Group S.A.

Evraz Group S.A. and its subsidiaries are involved in the
production and distribution of steel and related products. In
addition, the Company owns and operates certain mining assets. Its
steel production and mining facilities are mainly located in the
Russian Federation. During the year ended December 31, 2007, Evraz
produced 16.4 million tons of crude steel. Evraz’s principal
assets comprise three of the steel plants in Russia: Nizhny Tagil
(NTMK) in the Urals region and West Siberian (Zapsib) and
Novokuznetsk (NKMK) in Siberia, as well as Palini e Bertoli in
Italy, Evraz Vitkovice Steel in the Czech Republic, and Evraz
Oregon Steel Mills headquartered in the United States. In October
2007, the Company completed the buyout of NTMK, Zapsib, KGOK and
VGOK, and the Nakhodka Commercial Sea Port. On January 16, 2008,
the Company acquired Claymont Steel Holdings, Inc. In June 2008,
the Company completed the acquisition of IPSCO's Canadian plate
and pipe business from SSAB.


IRKUTSKENERGO AO: S&P Downgrades Corporate Credit Rating to 'B-'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Russian regional power and
heat utility Irkutskenergo, AO EiE to 'B-' from 'B+'.  S&P also
lowered the Russia national scale rating to 'ruBBB-' from 'ruA'.
Both ratings were kept on CreditWatch, where they were placed with
negative implications on July 22, 2008, due to very weak
liquidity.

"The downgrade reflects S&P's increasing uncertainty about the
company's ability to raise financing in time to cover an upcoming
obligatory minority share buyback and short-term debt payments,"
said Standard & Poor's credit analyst Sergei Gorin.

The current ratings are constrained by Irkutskenergo's very weak
liquidity position and strongly negative free operating cash flow.
In addition, the ratings incorporate the controlling shareholders'
strong interest in access to Irkutskenergo's cheap electricity
production, the absence of efficient corporate governance
mechanisms, the uncertainty about the company's ongoing
restructuring, the evolving industry regulatory regime, and high
customer concentration.

However, Irkutskenergo benefits from its low-cost hydrogenation
capacity and incumbent position in the Irkutsk Oblast (B+/Watch
Neg/--), where demand is solid.  Although the Irkutsk Electricity
Grid Co. spin-off will leave the company without the stable cash
flow from the regulated grid business, transferring some debt to
IEGC would be positive for its financial metrics.

The company's cash reserves, short-term bank lines, and the line
obtained in October 2008 were significantly less than its
short-term debt of RUR7.9 billion and the cash needed to fund the
buyback.

"We plan to resolve the credit watch placement after the company's
liquidity situation, structure, and financial position are
clarified," said Mr. Gorin.

The ratings could be lowered further if the company fails to
negotiate financing to cover the share buyback in November 2008
and its upcoming debt maturities in January 2009.  S&P would not
consider inability to make timely payments on the share buyback as
a default.  However, such a scenario would further emphasize the
company's very weak liquidity situation.  If the company obtains
credit lines sufficient to cover its short-term debt, the ratings
could be affirmed.


MOSCOW STARS: CB Moskommertsbank Rating Cut Cues Negative Outlook
-----------------------------------------------------------------
Fitch Ratings says that its decision last week to revise the
Outlook on Moscow Stars B.V.'s senior class notes to Negative from
Stable was a result of the downgrade of CB Moskommertsbank to 'B'
(Outlook Negative) from 'B+ (Outlook Negative) on Nov. 10, 2008.
The agency affirmed the 'BBB' ratings on Moscow Stars' notes.

The transaction is a securitization of mortgage loans originated
by CB Moskommertsbank, which is wholly owned by Kazkommertsbank
('BB'/Negative Outlook).

In line with Fitch's criteria, the class A rating and Outlook are
linked to the originator's rating and Outlook.  As such, a further
downgrade of the originator would trigger a downgrade of the class
A notes.  According to Fitch's criteria, the rating of the senior
class notes cannot be more than six notches above the rating of
the originator.  The class A notes are currently rated 'BBB' while
CB Moskommertsbank is rated 'B'.  A downgrade of CB
Moskommertsbank below 'B' would widen the gap between the class A
notes' rating and the originator's rating to over six notches.

Such an event would likely trigger a downgrade of the class A
notes to a rating level at which the gap between the rating of the
notes and the originator is equal to, or less than, six notches.
Consequently, Fitch believes a Negative Outlook is currently
appropriate for the class A notes.

According to Fitch's criteria for emerging markets transactions,
the loss severity stresses are linked to the Long-term local
currency Issuer Default Rating of the Russian Federation ('BBB+').
In light of Fitch's recent Outlook change on Russia to Negative,
the agency highlights that a downgrade of the Russian Federation
would result in higher loss severity assumptions for the class A
and B notes.  Fitch has analysed the effect of a potential
single-notch downgrade of the Russian Federation on the class A
and B notes.  The results of the analysis showed the notes could
withstand a single-notch downgrade of the sovereign due to
increased credit enhancement since closing, which was achieved
through a rapid amortisation of the notes.  As of November 2008,
the credit enhancement for the class A and B notes was 23.7% and
11.4% respectively compared with the values at closing, which were
17% and 8%.  Annualised prepayment ratios have been above 19%
since closing.

The transaction has so far performed in line with the Fitch's
expectations.  The cumulative defaults reported by the servicer
have amounted to 1.22% of the initial collateral balance while the
annual excess spread has averaged around 3.8% since closing.

Fitch will continue to closely monitor Russian economic
developments and their potential impact on the rating of the
notes.


RUSSIAN MORTGAGE: Fitch Changes Outlook to Stable after Russia's
----------------------------------------------------------------
Fitch Ratings says that its decision last week to change the
Outlook on Russian Mortgage Backed Securities 2006-1 S.A.'s mezza
nine and junior class notes to Stable from Positive was a result
of the change in the Outlook on the Russian Federation ('BBB+') on
Nov. 8, 2008 to Negative from Stable.  At the same time, the
ratings of the notes were affirmed at 'BBB' and 'BB-' (BB minus)
respectively.

Russian Mortgage Backed Securities 2006-1 S.A. is a securitization
of mortgage loans originated by Bank VTB (VTB 'BBB'/Outlook
Negative), the second-largest bank in Russia and majority-owned by
the Russian State.

A downgrade of more than one notch of the sovereign ratings will
add downward pressure on the ratings of the notes.  As such, the
Outlook change in the class B and class C notes was a reflection
of the change in the sovereign's outlook and was not triggered by
deterioration in the transaction performance.

Fitch highlights that a downgrade of the Russian Federation would
result in higher loss severity assumptions for the notes.  Fitch
has analyzed the effect of a potential single-notch downgrade of
the Russian Federation on the notes.  The results of the analysis
showed the notes could withstand a single-notch downgrade of the
sovereign due to increased credit enhancement since closing, which
was achieved through rapid amortization of the notes.  The
transaction has amortized by more than the 49% since closing due
to the relatively high prepayment rates, which have averaged
around 21% per annum since closing.  The rapid amortization has
increased credit enhancement for the notes, which is currently at
approximately 33% for class A, 12% for class B and 5% for class C
notes.

A downgrade of the Russia Federation ratings will likely trigger a
revision of the sovereign's 'A-' Country Ceiling; the latter
expresses the likelihood that transfer & convertibility
restrictions will be imposed by the local authorities.  However,
this would not impact the Class A notes as they are protected for
up to 18 months from T&C restrictions.  In the event that the
Country Ceiling is revised down by a notch, the one-notch
differential between the notes and the Country Ceiling can be
sustained by protection cover of six to 12 months.  As this is
less than the cover currently provided, a downward revision of the
Country Ceiling by one notch would not impact the notes' rating.
The protection is provided by a facility guaranteed by the
International Finance Corporation, credit-linked to the World Bank
('AAA'/Outlook Stable), which provides liquidity in the event that
the Russian government imposes T&C restrictions.  The Class B
notes also benefit from the same facility but as they are rated
below the Country Ceiling, they would not be impacted by a single
notch downward revision of the Country Ceiling.

Russian Mortgage Backed Securities 2006-1 S.A. has so far
performed in line with Fitch's expectations.  The transaction has
not posted any defaults since closing while the annual excess
spread has averaged around 3.5% since closing.

Fitch will continue to closely monitor Russian economic
developments and their potential impact on the rating of the
notes.


TATNEFT OAO: Net Profit Up 11% to RUR38.7BB in January-September
----------------------------------------------------------------
RIA Novosti reports the net profit of Tatneft OAO under Russian
Accounting Standards increased by 11% in January-September to
RUR38.7 billion from the same period last year.

According to the report, Tatneft's revenues in the reporting
period climbed 38% to RUR196.32 billion (US$7.27 billion).  Its
gross profit grew 36% to RUR76.83 billion (US$2.8 billion) while
operating profit increased 37% to RUR67.33 billion (US$2.5
billion).

In 2007 the company produced 25.9 million metric tons (190 million
bbl) of oil or about 5% of Russia's total crude output, the report
notes.

                          About Tatneft

Headquartered in Tatartan, Russia, OAO Tatneft --
http://www.tatneft.ru/eng/-- explores for, produces, refines
and markets crude oil.  The company operates a chain of retain
gasoline filling stations and exports some of its petrochemical
products to former Soviet Union countries and Europe.

                           *     *     *

Tatneft OAO continues to carry Ba2 long-term corporate family and
probability of default ratings from Moody's with stable outlook.

The company also carries a BB long-term issuer default rating and
a B short-term default rating from Fitch with stable outlook.


===========
T U R K E Y
===========


* S&P Changes Outlook on 7 Turkish Financial Firms to Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlooks on seven
Turkish financial institutions and one operating holding company.
The outlooks on these entities were revised to negative from
stable:

     -- T.C. Ziraat Bankasi A.S. (Ziraat),
     -- Turkiye Is Bankasi A.S. (Isbank),
     -- Turkiye Garanti Bankasi A.S. (Garanti),
     -- Garanti Finansal Kiralama A.S. (Garanti Leasing),
     -- Yapi ve Kredi Bankasi A.S. (YapiKredi),
     -- Turkiye Vakiflar Bankasi T.A.O. (VakifBank),
     -- HSBC Bank A.S., and
     -- Dogus Holding A.S.

At the same time, the 'BB-/B' long- and short-term counterparty
credit ratings on Ziraat, Isbank, Garanti Leasing, YapiKredi,
VakifBank, and Dogus Holding were affirmed.  Furthermore, the
'BB-' long-term counterparty credit rating on Garanti and the
'BB/B' long- and short-term counterparty credit ratings on HSBC
Bank A.S. were affirmed.  Additionally, the Turkish long-term
national scale ratings on Isbank, VakifBank, YapiKredi, and Ziraat
were lowered to 'trA' from 'trA+', and the Turkish long-term
national scale ratings on HSBC Bank A.S. were lowered to 'trAA'
from 'trAA+'.  Furthermore the 'trA-1' short-term national scale
ratings on Isbank, VakifBank, YapiKredi, Ziraat, and HSBC Bank
A.S. were affirmed.

The outlook revision follows that on the sovereign, Republic of
Turkey (foreign currency, BB-/Negative/B; local currency,
BB/Negative/B), following a shift in the balance of risks to the
downside as external financing conditions remain difficult.

The deteriorating economic prospects are expected to hamper
Turkish banks' loan growth and financial performance, due to
higher provisioning needs and more difficult refinancing
conditions on international markets.  Furthermore, domestic banks'
performance and fundamentals are highly correlated with sovereign
creditworthiness through, among other things, their significant
holdings of government securities.

However, the positive momentum of seven successive years of growth
and modernization put Turkish banks in a relatively robust
position compared with regional peers, particularly in the
Commonwealth of Independent States countries, to withstand the
current economic downturn and repercussions from the global
financial turmoil.  Banks in Turkey boast relatively low loan
leverage and diversified funding, which translate into stronger
liquidity profiles.  While current asset quality and
capitalization indicators remain good, Turkey is considered a
risky country, which has just started to feel the repercussions of
the global financial turmoil.  Hence S&P expects some
deterioration in banks' financial profile over the medium term.
In this respect, S&P takes some comfort from the successful track
record of Turkey's leading private sector banks in confronting the
country's recurring financial and political crises.

The negative outlook mirrors that on the Republic of Turkey.  If
confidence and economic growth prospects deteriorate, domestic
banks will have to operate in a difficult and volatile financial
environment, which will exert pressure on profitability, asset
quality, and capitalization.  Furthermore, the constrained
refinancing prospects in the medium term, although manageable,
will negatively affect growth prospects and liquidity.  Hence,
ratings on banks will remain highly correlated with sovereign
creditworthiness.  The outlooks on banks are likely to be revised
to stable if the same action is made on the sovereign.

                     Ratings List

                                To                  From
                                --                  ----
T.C. Ziraat Bankasi A.S.

-- Counterparty credit rating   BB-/Negative/B      BB-/Stable/B

-- Certificates of deposit      BB-/B               BB-/B

-- Long-term Turkish
   national scale rating        trA                 trA+

-- Short-term Turkish
   national scale rating        trA-1               trA-1

Turkiye Is Bankasi A.S.

-- Counterparty credit rating   BB-/Negative/B      BB-/Stable/B

-- Certificates of deposit      BB-/B               BB-/B

-- Long-term Turkish
   national scale rating        trA                 trA+

-- Short-term Turkish
   national scale rating        trA-1               trA-1

Turkiye Garanti Bankasi A.S.

-- Counterparty credit rating   BB-/Negative/--     BB-/Stable/--

-- Certificates of deposit      BB-                 BB-

Garanti Finansal Kiralama A.S.

-- Counterparty credit rating   BB-/Negative/B      BB-/Stable/B

Yapi ve Kredi Bankasi A.S.

-- Counterparty credit rating   BB-/Negative/B      BB-/Stable/B

-- Certificates of deposit      BB-/B               BB-/B

-- Long-term Turkish
   national scale rating        trA                 trA+

-- Short-term Turkish
   national scale rating        trA-1               trA-1

Turkiye Vakiflar Bankasi T.A.O.

-- Counterparty credit rating   BB-/Negative/B     BB-/Stable/B

-- Certificates of deposit      BB-/B              BB-/B

-- Long-term Turkish
   national scale rating        trA                 trA+

-- Short-term Turkish
   national scale rating        trA-1               trA-1

HSBC Bank A.S.

-- Counterparty credit rating   BB/Negative/B      BB/Stable/B

-- Certificates of deposit      BB/B               BB/B

-- Long-term Turkish
   national scale rating        trAA                trAA+

-- Short-term Turkish
   national scale rating        trA-1               trA-1

Dogus Holding A.S.

-- Counterparty credit rating   BB-/Negative/B     BB-/Stable/B

NB: This list does not include all ratings affected.


=============
U K R A I N E
=============


AGROSTAR LLC: Creditors Must File Claims by November 29
-------------------------------------------------------
Creditors of Agricultural LLC Agrostar (code EDRPOU 32456968) have
until Nov. 29, 2008, to submit proofs of claim to:

         Mr. Alexander Roy
         Novoaydarsky
         93543 Lugansk
         Ukraine

The Arbitration Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on Oct. 2, 2008.
The case is docketed as 20/116b.

         The Economic Court of Lugansk
         Geroiv VVV Square 3a
         91000 Lugansk
         Ukraine

The Debtor can be reached at:

         LLC Agrostar
         Komarov Str. 4a
         Titarevka
         Starobelsky
         92750 Lugansk
         Ukraine


ALPHA-RESOURCE LLC: Creditors Must File Claims by November 29
-------------------------------------------------------------
Creditors of LLC Alpha-Resource (code EDRPOU 34366557) have until
Nov. 29, 2008, to submit proofs of claim to:

         Mrs. Shkil Alla
         Liquidator
         Gogol Str. 12, Ap. 7
         Dnipropetrovsk
         Ukraine

The Arbitration Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on
Sept. 25, 2008.  The case is docketed as B 26/190-08.

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

The Debtor can be reached at:

         LLC Alpha-Resource
         Ap. 132
         B. 12
         Dwelling District Topolia-3
         Dnipropetrovsk
         Ukraine


ENTERPRISE FORMPLAST: Creditors Must File Claims by November 29
---------------------------------------------------------------
Creditors of Joint Ukrainian-Byelorussian Enterprise Formplast
(code EDRPOU 32540195) have until Nov. 29, 2008, to submit proofs
of claim to:

         Koziatin Regional State Tax Inspection
         Temporary Insolvency Manager
         Orlik Str. 19
         Koziatin
         22100 Vinnica
         Ukraine
         Tel: 2-20-49
         fax: 2-48-28

The Arbitration Court of Vinnica commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 10/149-0.

         The Economic Court of Vinnica
         Hmelnickiy Str. 7
         21036 Vinnica
         Ukraine

The Debtor can be reached at:

         Joint Ukrainian-Byelorussian Enterprise Formplast
         Promyshlennaya Str. 50
         Kalinovka
         22400 Vinnica
         Ukraine,


EURO-BUILDING-PROJECT: Creditors Must File Claims by Nov. 29
------------------------------------------------------------
Creditors of LLC Science-Production Enterprise Euro-Building-
Project (code EDRPOU 32297796)have until Nov. 29, 2008, to submit
proofs of claim to:

         Mr. Jury Karpenko
         Liquidator/Insolvency Manager
         P.O.B. 6734
         69123 Zaporozhje
         Ukraine

The Arbitration Court of Zaporozhje commenced bankruptcy
proceedings against the company after finding it insolvent on
Oct. 1, 2008.  The case is docketed as 12/163/08.

         The Economic Court of Zaporozhje
         Shaumiana Str. 4
         69001 Zaporozhje
         Ukraine

The Debtor can be reached at:

         LLC Science-Production Enterprise
         Euro-Building-Project
         Korotky Lane 4
         69096 Zaporozhje
         Ukraine


GENING LLC: Creditors Must File Claims by November 29
-----------------------------------------------------
Creditors of LLC Gening (code EDRPOU 23072315) have until
Nov. 29, 2008, to submit proofs of claim to:

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

The Arbitration Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on
Oct. 16, 2008.  The case is docketed as B 24/327-08.

The Debtor can be reached at:

         LLC Gening
         Heroes of Stalingrad Str. 122
         Dnipropetrovsk
         Ukraine


INTER-BUILDING-INVESTMENT: Creditors Must File Claims by Nov. 29
----------------------------------------------------------------
Creditors of Subsidiary Company Building Management Inter-
Building-Investment (code EDRPOU 33640334) have until Nov. 29,
2008, to submit proofs of claim to:

         Mr. Oleg Shkliar
         Liquidator
         Ap. 12
         Shevchenko Str. 16
         10002 Zhytomir
         Ukraine

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 26, 2008.
The case is docketed as 50/245.

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

The Debtor can be reached at:

         Subsidiary Company Building Management
         Inter-Building-Investment
         Novomostitskaya Str. 25
         Kiev
         Ukraine



KATERINOPOL PRODUCTION: Creditors Must File Claims by Nov. 29
-------------------------------------------------------------
Creditors of OJSC Katerinopol Production Enterprise Agricultural
Industrial Mechanization (code EDRPOU 03766464) have until
Nov. 29, 2008, to submit proofs of claim to:

         Mr. Vladimir Yatchuk
         Liquidator/Insolvency Manager
         Paris Commune Str. 104
         Russkaya Poliana
         Cherkassy
         Ukraine

The Arbitration Court of Cherkassy commenced bankruptcy
proceedings against the company after finding it insolvent on
Sept. 30, 2008.  The case is docketed as 10/4431.

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Debtor can be reached at:

         OJSC Katerinopol Production Enterprise
         Agricultural Industrial Mechanization
         Lenin Str. 55
         Katerinopol
         Cherkassy
         Ukraine


KHAZHYN AGRICULTURAL: Creditors Must File Claims by November 29
---------------------------------------------------------------
Creditors of Khazhyn Agricultural LLC (code EDRPOU 3083991) have
until Nov. 29, 2008, to submit proofs of claim to:

         Mr. Andrew Mamedov
         Liquidator/Insolvency Manager
         Ap. 95
         L. Tolstoy Str. 16
         Zhytomir
         Ukraine

The Arbitration Court of Zhytomir commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 12, 2008.
The case is docketed as 7/178B.

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

The Debtor can be reached at:

         Khazhyn Agricultural LLC
         Kotovsky Str. 1-a
         Khazhyn
         Berdichev
         Zhytomir
         Ukraine


KORVET LLC: Creditors Must File Claims by November 29
-----------------------------------------------------
Creditors of LLC Korvet (code EDRPOU 31102240) have until
Nov. 29, 2008, to submit proofs of claim to:

         Lutsk united state tax inspection
         Liquidator
         Kiyevsky Mayna, 4
         Lutsk
         Volin
         Ukraine

The Arbitration Court of Volin commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 8/80-B.

         The Economic Court of Volin
         Volia Avenue 54-a
         43010 Lutsk
         Volin
         Ukraine

The Debtor can be reached at:

         LLC Korvet
         Makarov Str. 5
         43000 Lutsk
         Ukraine


SPECIAL TECHNOLOGY: Creditors Must File Claims by November 29
-------------------------------------------------------------
Creditors of LLC Company Special Technology (code EDRPOU 31737520)
have until Nov. 29, 2008, to submit proofs of claim to:

         Mrs. Alla Shkil
         Liquidator
         Gogol Str. 12, Ap. 7
         Dnipropetrovsk
         Ukraine

The Arbitration Court of Dnipropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent on
Sept. 25, 2008.  The case is docketed as B 26/189-08.

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

The Debtor can be reached at:

         LLC Company Special Technology
         Lenin Str. 39
         49000 Dnipropetrovsk
         Ukraine


TRUBEZH CJSC: Creditors Must File Claims by November 29
-------------------------------------------------------
Creditors of CJSC Trubezh (code EDRPOU 23512300) have until
Nov. 29, 2008, to submit proofs of claim to:

         Mr. Sergey Diachenko
         Liquidator
         P.O.B. 149
         03055 Kiev
         Ukraine
         Tel: 8(050)331-56-82

The Arbitration Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 12, 2008.
The case is docketed as 44/269-b.

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

The Debtor can be reached at:

         CJSC Trubezh
         Leskov Str. 9
         Kiev
         Ukraine


TURBOV KAOLIN: Creditors Must File Claims by November 29
--------------------------------------------------------
Creditors of OJSC Turbov Kaolin Plant (code EDRPOU 05474145) have
until Nov. 29, 2008, to submit proofs of claim to:

         Mr. Vladislav Sovetov
         Temporary Insolvency Manager
         Ap. 11
         K. Marks Str. 59
         Illintsy
         Vinnica
         Ukraine
         Tel: 8-096-455-75-53

The Arbitration Court of Vinnica commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed as 5/255-08.

         The Economic Court of Vinnica
         Hmelnickiy Str. 7
         21036 Vinnica
         Ukraine

The Debtor can be reached at:

         OJSC Turbov Kaolin Plant
         Mir Str. 77
         Turbov
         Lipovetsky
         Vinnica
         Ukraine


===========================
U N I T E D   K I N G D O M
===========================


BE MOVED: Taps Joint Administrators from PKF
--------------------------------------------
Ian J. Gould and Edward T. Kerr of PKF (UK) LLP were appointed
joint administrators of Be Moved Ltd. on Oct. 31, 2008.

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

         New Guild House
         45 Great Charles Street
         Queensway
         Birmingham
         B3 2LX
         England

Be Moved Ltd. is a non-trading holding company.


BRITISH AIRWAYS: Four Executives Appear in Court Over Price-Fixing
------------------------------------------------------------------
Megan Murphy at the Financial Times reports that four past and
present British Airways executives appeared before the City of
London magistrates' court Wednesday last week over alleged price-
fixing.

The four who were charged by the Office of Fair Trading with
conspiring with rival Virgin Atlantic to inflate passenger fuel
surcharges on transatlantic flights between 2004 and 2006 include
Andrew Crawley, current head of sales; Martin George, former
commercial director and board member; Iain Burns, former head of
communications; and Alan Burnett, former head of UK and Ireland,
the report discloses.

According to the report, they could face up to five years in jail
if convicted.

However, the report relates, the four men did not enter a plea,
and spoke only to confirm their names, ages and addresses at the
court.  They were released on unconditional bail until January,
when they are due to appear at Southwark crown court, the report
says.

The report notes a full trial is not expected to start for many
months.

                      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.

                          *     *     *

As reported in the TCR-Europe on Nov. 18, 2008, Moody's Investors
Service placed all ratings of British Airways plc (Baa3 Corporate
Family Rating - CFR); Ba1 senior unsecured and the Ba2 rating of
the perpetual guaranteed preferred securities on review for
possible downgrade.


BRITISH AIRWAYS: Iberia Eyes Bigger Share of Merger
---------------------------------------------------
Alistair Osborne at the Daily Telegraph reports that Iberia Lineas
Aereas de Espana SA, which is planning an all-share merger with
British Airways plc, has told investors it may take a bigger share
of the combined group.

Iberia chairman Fernando Conte acknowledged the all-share merger
is a complex process as there are still some difficulties,
including BA's pension deficit, the report discloses.

Mr. Conte, as cited by the report, said "it's crucial that it's
well designed to fulfill the expectations of both companies."

Mr. Conte, according to the report, noted that while he believes a
deal could be done, it will take some more time and will likely
have some impact on the relative value of both companies.

The report relates Iberia shareholders initially expected to take
about one-third of the combined carrier when the planned merger
was first disclosed in July, although Caja Madrid, which holds a
23% stake in the Spanish carrier, insisted Iberia investors should
get 40%.

BA chief executive Willie Walsh however maintained the natural
merger ratio is in the 65:35 to 60:40 range.

"I haven't changed my view on that – even if the current market
caps don't necessarily reflect that," Mr. Walsh was quoted by the
report as saying.

Citing the Daily Telegraph, the TCR-Europe reported on Nov. 13,
2008, that John Ralfe, an independent pensions consultant, warned
it would cost BA at least GBP6 billion to sell its pension
liability.

The report said the cost of offloading the pension deficit would
be several times the market cap of the airline, which is currently
valued at about GBP1.6 billion.

                      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.

                          *     *     *

As reported in the TCR-Europe on Nov. 18, 2008, Moody's Investors
Service placed all ratings of British Airways plc (Baa3 Corporate
Family Rating - CFR); Ba1 senior unsecured and the Ba2 rating of
the perpetual guaranteed preferred securities on review for
possible downgrade.


EIRLES TWO: Moody's Withdraws Junk Rating on Series 129 Notes
-------------------------------------------------------------
Moody's withdrew the rating of one class of notes issued by Eirles
Two Limited.  These notes were repurchased in full on the
Sept. 19, 2008.

Eirles Two Limited:

(1) Series 129 US$4,673,478 Variable Interest Limited Recourse
    Secured Notes due 2035 relating to the Class 2 AV-3 Asset-
    Backed Certificates, Series 2004-10 of CWABS Asset-Backed
    Certificates Trust 2004-10

     -- Current Rating: WR
     -- Prior Rating: Caa2, on review for possible downgrade
     -- Prior Rating Date: January 16, 2008


EYEWEAR HOLDINGS: Names Joint Administrators from Grant Thornton
----------------------------------------------------------------
Leslie Ross and David Michael Riley of Grant Thornton UK LLP were
appointed joint administrators of Eyewear (Europe) Holdings Ltd.
on Oct. 29, 2008.

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

         4 Hardman Square
         Spinningfields
         Manchester
         M3 3EB
         England

Eyewear (Europe) Holdings Ltd. is a wholesaler of spectacles and
sunglasses.


HBOS PLC: Could Face Nationalization if Lloyds Takeover Fails
-------------------------------------------------------------
HBOS plc is urging its shareholders to vote in favor of its merger
with Lloyds TSB, BBC News reports.

HBOS warned the bank could face nationalization if shareholders
turn down a proposed takeover by Lloyds TSB as it would need
significantly more capital, making the loss of private sector
status more likely, BBC relates.

In a letter to shareholders cited by BBC, HBOS said independence
could lead to "the loss of private sector status" -- in effect,
nationalization.

Reuters discloses the government told HBOS it would need GBP12
billion if it stayed independent, but the bank indicated "there
can be no certainty" it would not need more than that or that it
would be able to successfully raise capital.

HBOS shareholders are scheduled to vote on the GBP12 billion
(US$18 billion) takeover by Lloyds TSB on December 12, BBC
discloses.

Peter Burt, former Bank of Scotland chief executive, and George
Mathewson, former Royal Bank of Scotland CEO, attempted to block
the HBOS merger with Lloyds TSB, arguing it was no longer
necessary and shareholders would be better off if the bank
remained independent, the Associated Press recounts.

However, HBOS chairman Stevenson maintained the merger was in the
bank's best interest, the AP notes.

"Being part of the enlarged group should improve confidence in the
business, increase its long-term creditworthiness, reduce over
time its cost of funding and better position the business for
success in the future," Mr. Stevenson was quoted by the AP as
saying.

Meanwhile, Chris Tryhorn at the Guardian writes Jim Spowart, the
financier who tried to broker an alternative bid for HBOS, said
Sunday he had given up hope of scuppering the bank's takeover by
Lloyds TSB after failing to get political support for his plans.

According to the Guardian, Mr. Spowart wants to bring in another
bidder in an attempt to save the 40,000 jobs he believes will go
after the takeover.

Mr. Spowart, the Guardian notes, was reported to have been talking
to Bank of China, although he would not discuss the identity of
his partners.  He criticized the government for failing to
investigate an alternative to the Lloyds takeover, the Guardian
adds.

"What I was trying to do was find an alternative.  We have been
actually discouraged," The Guardian quoted Mr. Spowart as saying
"I've had no contact from the secretary of state for Scotland, nor
from MSPs or MPs - doesn't that speak volumes?

"I don't think they want to pursue [my] bid.  That's my own view.
I tried my best but it's time to move on," Mr. Spowart said.

                          About HBOS Plc

HBOS Plc (LON: HBOS) is a United-Kingdom based company.  It is the
holding company of the HBOS Group.  It operates through five
divisions: Retail, Corporate, Insurance & Investment,
International and Treasury & Asset Management.  The company's
Retail range of products includes personal and business banking
products and services to 23 million customer


IRONWORKS LTD: Taps Joint Liquidators from PKF
----------------------------------------------
Kerry Bailey and Jonathan Newell of PKF(UK) LLP were appointed
joint liquidators of The Ironworks (Oswestry) Ltd. on Oct. 31,
2008, for the creditors' voluntary winding-up proceeding.

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

         Sovereign House
         Queen Street
         Manchester
         M2 5HR
         England


KALMAR STRUCTURED: Moody's Junks Rating on EUR8.3MM Class C Notes
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of five classes
of notes issued by by Kalmar Structured Finance A/S.

According to Moody's, the rating action is the result of
deterioration in the credit quality of the transaction's reference
portfolio, which includes but is not limited to exposure to
Washington Mutual Inc., which was seized by federal regulators on
September 25, 2008 and subsequently virtually all of its assets
were sold to JPMorgan Chase, Fannie Mae and Freddie Mac, which
were placed into the conservatorship of the U.S. government on
Sept. 8, 2008.

Rating actions are:

Kalmar Structured Finance A/S:

(1) Class A1 EUR4,250,000 Secured Notes III due 2011

  -- Current Rating: Baa1
  -- Prior Rating: A3
  -- Prior Rating Action Date: April 2nd 2008

(2) Class A2 SEK140,000,000 Secured Notes III due 2011

  -- Current Rating: Baa1
  -- Prior Rating: A3
  -- Prior Rating Action Date: April 2nd 2008

(3) Class B1 EUR6,015,000 Secured Notes III due 2011

  -- Current Rating: Ba2
  -- Prior Rating: Ba1
  -- Prior Rating Action Date: April 2nd 2008

(4) Class B2 SEK65,000,000 Secured Notes III due 2011

  -- Current Rating: Ba2
  -- Prior Rating: Ba1
  -- Prior Rating Action Date: April 2nd 2008

(5) Class C EUR8,255,000 Secured Notes III due 2011

  -- Current Rating: Caa1
  -- Prior Rating: B2
  -- Prior Rating Action Date: September 25th 2007


KEN WILSON: Names Joint Liquidators from Tenon Recovery
-------------------------------------------------------
Ian William Kings and Steven Philip Ross of Tenon Recovery were
appointed joint liquidators of Ken Wilson Associates Ltd. on
Oct. 30, 2008, for the creditors' voluntary winding-up proceeding.

The company can be reached through Tenon Recovery at:

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


LANDSBANKI: Savers to Meet with Guernsey Authorities on Monday
--------------------------------------------------------------
Emma Simon at the Daily Telegraph reports that an action group for
savers in Landsbanki Guernsey will meet with Guernsey authorities
on Monday, November 24.

The Landsbanki Guernsey Depositors Action Group will put forward
proposals at the meeting which could secure the return of savers'
money in full, the report discloses.

According to the report, one of the key demands that will be made
to the chief minister, Lyndon Trott, is that money owed to the
Guernsey bank by the UK-based Heritable Bank –- also owned by the
Icelandic parent Landsbanki –- be repaid.

The group, the report adds, will also petition British authorities
to put pressure on their Icelandic counterparts to return the
GBP12 million that it claims were "upstreamed" to the parent
company.

"We expect that positive news on this would go some way to
restoring greater confidence in Guernsey as a place to invest.
The group will be asking specifically what the Guernsey government
is doing to assist recovery of depositors' monies in its meeting
and discussions with other governments," a spokesman for the LGDAG
was quoted by the report as saying.

As reported in the TCR-Europe on Oct. 21, 2008, the
administrators of Landsbanki Guernsey announced a proposal to
make a part-payment to depositors equivalent to 30 pence in the
GBP1.

                About Landsbanki Guernsey Ltd.

Landsbanki Guernsey Ltd. -- http://www.landsbanki.co.gg/-- is
engaged in retail banking.  It is a subsidiary of Iceland-based
financial institution Landsbanki Islands hf.

Lansbanki Guernsey was placed into administration on Oct. 7, 2008.
The administration, which follows the deepening problems of the
Icelandic economy and, in particular, of the Icelandic banking
system, is on a temporary basis until Jan. 6, 2009 or earlier
order of the Royal Court.

The affairs, business and property of the bank are being managed
by the joint administrators, Rick Garrard and Lee Manning of
Deloitte, the business advisory firm.


LEHMAN BROTHERS: Administration More Complicated than Enron
-----------------------------------------------------------
Mathieu Robbins at the Independent reports that accountants at
PricewaterhouseCoopers said Friday the administration of the
London-based arm of Lehman Brothers will be "at least 10 times"
more complicated than the European side of the Enron bankruptcy in
2001.

The Independent relates the administrators, led by Tony Lomas,
said at a press conference on the Lehman situation the
administration process could take several years as there are more
than US$1 trillion of positions to unwind, noting only about US$5
billion of asset realizations have been made so far after more
than two months.

Mr. Lomas added the UK bankruptcy law and the complexity of the
trades and inter-relationships between different Lehman businesses
make the unwinding more difficult, the Independent discloses.

According to Breakingnews.ie, the whole administration process
could take as long as seven years and is going to be expensive.
Citing the administrators, Breakingnews.ie says it involved
working with PwC staff around the world, costing as much as
GBP4 million (EUR4.66 million) a week.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No.: 08-13555).  Lehman's bankruptcy petition listed
$639 billion in assets and $613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16
(Case No. 08-13600).  Several other affiliates followed
thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

                 International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008. The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion ($33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


M & S LTD: Names Joint Administrators from Tennon Recovery
----------------------------------------------------------
Jeremy Woodside and Christopher Benjamin Barrett of Tenon Recovery
were appointed joint administrators of M & S (Metal Services) Ltd.
on Nov. 3, 2008.

The company can be reached at:

         10 Bolton Street
         Ramsbottom
         Bury
         Lancs
         BLO 9HX
         England


MAWLAW 526 LTD: Appoints Joint Liquidators from KPMG
----------------------------------------------------
On Oct. 30, 2008, Blair Carnegie Nimmo of KPMG LLP was appointed
liquidator for the creditors' voluntary winding-up proceeding of:

   -- Cityscape Global Media Ltd.,
   -- Demon Ltd., and
   -- Manweb Generation (Winnington) Ltd.

These companies can be reached at:

         8 Salisbury Square
         London
         EC4Y 8BB
         England


M B JOINERY: Taps Joint Liquidators from Baker Tilly
----------------------------------------------------
Lindsey Cooper and Adrian Allen on Baker Tilly Restructuring and
Recovery LLP were appointed joint liquidators of M B Joinery Ltd.
on Nov. 3, 2008.

The company can be reached through Baker Tilly Restructuring &
Recovery LLP at:

         Brazennose House
         Lincoln Square
         Manchester
         M2 5BL
         England


SPACE 2 LTD: Appoints Joint Administrators from KPMG
----------------------------------------------------
On Nov. 5, 2008, Jonathan Scott Pope and David John Crawshaw of
KPMG LLP were appointed joint administrators of:

   -- Space 2 Ltd.,
   -- Meristem Holdings Ltd., and
   -- The Furniture Factory Ltd.

These companies can be reached at:

         Meristem House
         Wells Road
         Glastonbury
         Somerset
         BA6 9AG
         England


XTREME BRAND: Names Joint Liquidators from Tenon Recovery
---------------------------------------------------------
Christopher Ratten and Jeremy Woodside of Tenon Recovery were
appointed joint liquidators of Xtreme Brand Marketing Group Ltd.
on Nov. 5, 2008.

The company can be reached at:

         Grove House
         227-233 London Road
         Hazel Grove
         Stockport
         Cheshire
         England


* UK Company Winding Up Petitions Up 13% in Third Quarter 2008
--------------------------------------------------------------
The Ministry of Justice, on Friday, Nov. 14, released company
winding up and bankruptcy petition court statistics for the third-
quarter of 2008.

The Ministry of Justice statistics bulletin presents the numbers
of company winding up, and creditors' and debtors' bankruptcy
petitions issued in the High Court and county courts of England
and Wales for the third quarter of 2008.

                         Findings

In the third quarter of 2008 the High Court and county courts of
England and Wales issued:

    * 3,184 company winding up petitions – an increase of 13% on
      the same quarter of 2007 and a 9% increase on the previous
      quarter.

    * 5,499 creditors' petitions – an increase of 10% on the
      same quarter of 2007 and a 2% decrease on the previous
      quarter.

    * 13,653 debtors petitions – an increase of 7% on the same
      quarter of 2007 and a 1% increase on the previous quarter.


* S&P Says UK Buy-To-Let Mortgage to Weaken in Economic Downturn
----------------------------------------------------------------
The U.K. buy-to-let residential mortgage loan sector will soon
begin to underperform compared with the overall mortgage market,
according to a report published by Standard & Poor's Ratings
Services.

The credit risk of the sector has been rising on the back of
declining property prices, a contraction in the availability of
mortgage credit, and growing uncertainty over the wider economic
environment.

According to surveillance credit analyst Kate Livesey: "While
older buy-to-let mortgages outperform similar loans made to prime
owner-occupiers, newer buy-to-let mortgages are now
underperforming, given looser initial underwriting standards and
lower absolute growth in rental coverage since origination."

She added that this makes performance of the buy-to-let sector
more sensitive to the currently difficult credit environment.

The report estimates that just over 50% of buy-to-let loans
outstanding are from the worse-performing 2006 and 2007 vintages,
and S&P expect that the buy-to-let sector will soon begin to
underperform versus the overall mortgage market on aggregate
measures.

The performance of buy-to-let mortgages has so far seemed
resilient, based on certain headline measures.  However, if buy-
to-let loans are compared with only prime owner-occupied loans,
excluding nonconforming loans, their performance looks less
favorable.  Buy-to-let loans are already showing a proportionally
higher level of repossessions than mainstream owner-occupied
lending, and the loss borne by lenders on each repossession case
may prove higher too.

Based on an analysis of around 200,000 securitized buy-to-let
loans (approximately 20% of the buy-to-let market), buy-to-let
arrears were 3.7% at the end of June, compared with 2.9% of
arrears in a sample of prime owner-occupied mortgages.

S&P also estimates that around 20%-40% of buy-to-let borrowers
could fall into negative equity by mid-2009, based on a peak-to-
trough house price decline of around 25%-30%.  This compares with
14%-20% for the market as a whole.

"We believe that the BTL sector could suffer above-average loss
severities on repossession cases due to a concentration of certain
property types that are witnessing above-average price declines,"
said Ms. Livesey.  "In a downturn S&P believe that the current
stock of buy-to-let loans will carry higher credit risk than the
stock of loans to prime owner-occupiers."

This is the first of two reports S&P intends to publish on the
buy-to-let sector.  Whereas this report focuses solely on the
fundamentals of buy-to-let mortgage performance, the second report
will focus on residential mortgage-backed securities that S&P
rates and which are predominantly backed by buy-to-let mortgages.


* Moody's Sees Weakening in EMEA Auto Loans Performance in Q3 2008
------------------------------------------------------------------
The performance of the asset-backed securities auto loans
transactions in Europe, Middle East and Africa rated by Moody's
weakened further in the third quarter of 2008, says Moody's
Investors Service in its latest index report on the sector.
Moody's performance indices showed some weakening across major
markets.

Moody's reports that the 60+ days delinquency trend rose to 1.05%
in Q3 2008 from 1.02% in the previous quarter, while the 60-90
days delinquency trend remained comparatively stable at 0.46%.
The weighted-average cumulative default trend, in turn, increased
to 0.93% in Q3 2008 from 0.70% in Q3 2007.  Moody's says the rise
was attributable to the impact of loans securitized in 2006, which
in the third quarter showed a steeper increase in the default
trend than the overall market.

Moody's notes that the markets with high delinquency rates —-
Portugal, South Africa, and Spain -— also showed high cumulative
loss rates.  Overall, the cumulative loss trend increased to 0.39%
in Q3 2008 from 0.32% in Q3 2007.

Moody's took no performance-related rating actions on outstanding
EMEA auto loan transactions during the third quarter.

"German transactions make up more than half of the rated EMEA
loans in Moody's index," observes Yuezhen Wang, a Moody's Senior
Associate and co-author of the report.  "We also note that a
majority of the auto loans (68%) are from captive originators."
Moody's expects the economic climate to pressure the EMEA auto
loan indices further.  "The current cyclical development bodes
poorly for unemployment in the short-term," says Nitesh Shah, a
Moody's Economist and co-author the report.

                            *********

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
publication in any form (including e-mail forwarding, electronic
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 * * *