TCREUR_Public/090217.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

          Tuesday, February 17, 2009, Vol. 10, No. 33

                            Headlines

A U S T R I A

HASAG POLSTERMOEBEL: Claims Registration Period Ends March 16
KOMADINIC ALEKSANDAR: Claims Registration Period Ends March 11
MAXUM CAR: Claims Registration Period Ends March 11
MC LIVE: Claims Registration Period Ends March 11
MHM & CO: Claims Registration Period Ends March 16

SCHNEEBICHLER FAHRZEUGBAU: Claims Registration Ends March 16


B E L G I U M

FORTIS BANK: Ownership Change Cues Fitch's Cut of HCI to BB-
FORTIS INSURANCE: Moody's Reviews 'Ba1' Ratings for Likely Cuts
FORTIS SA/NV: Shareholders Reject Sale of Dutch and Belgian Units
FORTIS SA/NV: S&P Downgrades Counterparty Credit Ratings to 'BB/B'


C Y P R U S

KOMMUNALKREDIT INT'L: Fitch Junks Rating on Preferred Securities


G E R M A N Y

AUDI ZENTRUM: Claims Registration Period Ends April 7
FOOD CONCEPTION: Claims Registration Period Ends May 25
REVITA GMBH: Claims Registration Period Ends March 22
SPORTS GALLERY: Claims Registration Period Ends March 19
VARIO SYSTEMBAU: Claims Registration Period Ends March 18

WHOOPI FASHION: Claims Registration Period Ends April 8


I R E L A N D

CLOVERIE PLC: Moody's Junks Ratings on JPY5 Bil. Notes
GOLDEN DISC: Interim Examiner Appointed; Owes Sony EUR1.38 Mln
HERALD LTD: Moody's Junks Ratings on EUR3 Mln Tranche D Notes
IRIDAL PLC: Moody's Junks Ratings on EUR3 Mil. Tranche B Notes
TULFARRIS HOUSE: Goes Into Examinership; Grant Thornton Appointed


I T A L Y

DA VINCI: Fitch Junks Ratings on EUR36.4-Mil. of Notes
EUROHOME MORTGAGES: S&P Cuts Ratings on Class D Notes to 'BB+'
ITA 8: Moody's Cuts Ratings on Two Classes of Notes to Low-B
SAFILO SPA: Moody's Cuts Corporate Family Rating to 'B2'
SAFILO SPA: S&P Downgrades Corporate Credit Rating to 'B-'


K A Z A K H S T A N

AGRO TECH-TSK: Proof of Claim Deadline Slated for March 21
AINA LINE: Creditors Must File Claims by March 21
ASIA TRANSIT: Claims Filing Period Ends March 21
BAGRUS LLP: Creditors' Proofs of Claim Due on March 21
BARYS SPETS: Claims Registration Period Ends March 21

BIBARS LLP: Proof of Claim Deadline Slated for March 21
ER SAKEN N: Creditors Must File Claims by March 21
MEDEU LLP: Claims Filing Period Ends March 21
TARAZ-REG STROY: Creditors' Proofs of Claim Due on March 21


K Y R G Y Z S T A N

D PROPERTY LLC: Creditors Must File Claims by March 6


R U S S I A

ARKHANGELSKIY WOOD: Creditors Must File Claims by March 6
ASTRAKHAN INDUSTRIAL BANK OJSC: Creditors May File Claims
DINSK-SAKHAR OJSC: Creditors Must File Claims by March 6
GAZ-INVEST-BANK OJSC: Creditors Must File Claims by April 6
GIRKUBS OJSC: Creditors Must File Claims by March 6

MAGNITOGORSK OAO: S&P Affirms 'BB' Corporate Credit Rating
RASPADSKAYA OAO: Moody's Cuts Corporate Family Rating to 'Ba3'
ROS-DON-CHER-MET LLC: Creditors Must File Claims by March 6
SHUGUROVSKIY OIL: Creditors Must File Claims by April 6
TETKINSKIY SUGAR: Creditors Must File Claims by March 6

TUMEN-GAZ-MATERIALY CJSC: Creditors Must File Claims by March 6
UL'KANSKIY LES: Creditors Must File Claims by April 6


S P A I N

BBVA-6 FTPYME: S&P Downgrades Rating on Class C Notes to 'B'


S W I T Z E R L A N D

91NORD LLC: Creditors Must File Proofs of Claim by March 13
GLOBAL SECRET: Deadline to File Proofs of Claim Set February 28
GRAFFITICS LLC: Creditors Have Until March 17 to File Claims
HOLAD HOLDING: Proof of Claim Filing Deadline Set March 13
KONIGSDORFER VERWALTUNG: Claims Filing Period Ends February 28

MISEV LLC: February 28 Set as Deadline to File Claims
SCHUDEL PARTNER: Creditors Must File Proofs of Claim by March 5
SCHREINEREI BAUMGARTNER: Feb. 26 Set as Deadline to File Claims


U K R A I N E

AUTOMISSION LLC: Creditors Must File Claims by February 28
DRUZHBA AGRICULTURAL: Court Starts Bankruptcy Procedure
DRUZHBA AGRICULTURAL: Creditors Must File Claims by Feb. 28
KASKO CJSC: Creditors Must File Claims by February 28
LOPAS LLC: Creditors Must File Claims by Feb. 28

NADRA BANK: S&P Junks Counterparty Credit Rating From 'B-'
NORMA LLC: Creditors Must File Claims by February 28
SODRUZHESTVO LLC: Creditors Must File Claims by Feb. 28
UKRSOTSBANK OJSC: S&P Places 'B' Rating on Negative CreditWatch

* Fitch Takes Rating Actions on Various Ukrainian Companies
* Fitch Downgrades Issuer Default Ratings on Nine Ukrainian Banks


U N I T E D   K I N G D O M

ADAMS CHILDRENSWEAR: Sold to JS Childrenswear; 1,900 Jobs Saved
BLP GROUP: Appoints Joint Administrators from PwC
CAIRN EURO: Fitch Junks Ratings on EUR$17.3-Mil. Notes
CLINTON CARDS: In Refinancing Talks With Lenders Amid CVA Rumors
CORNHILL CONSERVATORIES: Smith & Williamsons Named Administrators

DILLONS GARDEN: Taps Joint Administrators from PwC
FREEMAN AND PROCTOR: Appoints Joint Administrators from PwC
GROSVENOR SHOPPING: In Talks w/ Lenders Amid Debt Breach Concerns
HELPCARE LTD: Enters Administration; Buyer Sought for Care Homes
HUGHMARK INTERNATIONAL: Enters Administration; Ceases Trading

JJB SPORTS: Lenders Extend Standstill Arrangements to March 16
METAL PRESSINGS: PKF Named Joint Administrators
MIDAS CAPITAL: Gets Covenant Waiver Until April 30
RIO TINTO: Unveils US$19.5 Billion Deal With Chinalco
RIO TINTO: S&P Will Rate Convertible Bonds at 'BB+'

ROXYLIGHT GROUP: Appoints Liquidators from Smith & Williamson
SAXON URBAN: Brings In Joint Liquidators from Smith & Williamson
STYLO PLC: Slips Into Administration; CVA for Two Units Rejected
TAPEO UK: Taps Joint Administrators from Smith & Williamson
WHITTAL-WILLIAMS Ltd: Appoints Joint Administrators from BDO

* Moody's Takes Rating Actions on Six EU Paper Products Companies

* Large Companies with Insolvent Balance Sheet


                         *********


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


HASAG POLSTERMOEBEL: Claims Registration Period Ends March 16
-------------------------------------------------------------
Creditors owed money by LLC Hasag Polstermoebel (FN 291285k) have
until March 16, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Christian Rumplmayr
         Stadtplatz 36
         4840 Voecklabruck
         Austria
         Tel: 07672/75931
         Fax: 07672/75953
         E-mail: rumplmayr@jusonline.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:40 a.m. on March 26, 2009, for the
examination of claims at:

         Land Court of Wells (519)
         Hall 101
         Wells
         Austria

Headquartered in Attnang – Puchheim, Austria, the Debtor declared
bankruptcy on Jan. 8, 2009, (Bankr. Case No. 20 S 5/09z).


KOMADINIC ALEKSANDAR: Claims Registration Period Ends March 11
--------------------------------------------------------------
Creditors owed money by KG Komadinic Aleksandar (FN 291851v) have
until March 11, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Martina Simlinger-Haas
         Reisnerstrasse 31
         1030 Wien
         Austria
         Tel: 713 99 46
         Fax: 713 99 46-22
         E-mail: ra.reisnerstr31@aonn.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on March 25, 2009, for the
examination of claims at:

         Trade Court of Vienna (007)
         Room 1705
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 8, 2009, (Bankr. Case No. 3 S 3/09z).


MAXUM CAR: Claims Registration Period Ends March 11
---------------------------------------------------
Creditors owed money by LLC Maxum Car Import (FN 297387i) have
until March 11, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Walter Kainz
         Gusshausstrasse 23
         1040 Wien
         Austria
         Tel: 505 88 31
         Fax: 505 94 64
         E-mail: kanzlei@kainz-wexberg.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on March 25, 2009, for the
examination of claims at:

         Trade Court of Vienna (007)
         Room 1705
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 9, 2009, (Bankr. Case No. 3 S 4/09x).


MC LIVE: Claims Registration Period Ends March 11
-------------------------------------------------
Creditors owed money by LLC Mc Live (FN 140842x) have until
March 11, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Johanna Abel-Winkler
         Franz-Josefs-Kai 49/19
         1010 Wien
         Austria
         Tel: 533 52 72
         Fax: 533 52 72-15
         E-mail: office@abel-abel.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on March 25, 2009, for the
examination of claims at:

         Trade Court of Vienna (007)
         Room 1705
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 7, 2009, (Bankr. Case No. 3 S 1/09f).


MHM & CO: Claims Registration Period Ends March 16
--------------------------------------------------
Creditors owed money by LLC MHM & Co. KG (FN 214638w) have until
March 16, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Erich Gugenberger
         Attergaustrasse 30
         4880 St. Georgen im Attergau
         Austria
         Tel: 07667/20980
         Fax: 07667/20980-20
         E-mail: office@drgugenberger.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:20 a.m. on March 26, 2009, for the
examination of claims at:

         Land Court of Wells (519)
         Hall 101
         Wells
         Austria

The Debtor declared bankruptcy on Jan. 8, 2009, (Bankr. Case No.
20 S 3/09f).


SCHNEEBICHLER FAHRZEUGBAU: Claims Registration Ends March 16
------------------------------------------------------------
Creditors owed money by LLC Schneebichler Fahrzeugbau (FN 291310y)
have until March 16, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Peter Heigenhauser
         Wiesinger Strasse 3
         4820 Bad Ischl
         Austria
         Tel: 06132/25581
         Fax: 06132/25581-5
         E-mail: dr.peter.heigenhauser@aon.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on March 26, 2009, for the
examination of claims at:

         Land Court of Wells (519)
         Hall 101
         Wells
         Austria

Headquartered in Zell am Moos, Austria, the Debtor declared
bankruptcy on Jan. 8, 2009, (Bankr. Case No. 20 S 2/09h).


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


FORTIS BANK: Ownership Change Cues Fitch's Cut of HCI to BB-
------------------------------------------------------------
Fitch Ratings has affirmed Fortis Bank's and BGL SA's Long-term
Issuer Default Ratings at 'A+', and removed them from Rating Watch
Positive.  The Outlooks on both IDRs are Stable.

The removal of the RWP reflects Fitch's view that BNP Paribas'
plans to acquire controlling stakes in Fortis Bank and BGL SA are
now unlikely to go ahead, following the decisions taken this week
during Fortis' shareholders' meetings.  The ratings had been
placed on RWP on October 6, 2008 when these plans were announced.

As a consequence, Fortis Bank and BGL SA will continue to be
state-controlled in the absence of an alternative solution.  Fitch
has accordingly affirmed the Support '1' Ratings and Support
Rating Floors of 'A+' of both banks, which continue to underpin
their Long-term IDRs.

Fortis Bank's hybrid capital instruments have been downgraded to
'BB-' (BB minus) and placed on Rating Watch Negative to reflect
Fitch's view that the risk of coupon deferral has materially
increased.  This is because the bank will now remain government-
controlled and earnings are likely to remain under pressure in the
current operating environment.  While these instruments contain an
alternative coupon settlement mechanism, the agency has concerns
that this ACSM will not work as planned given the present
uncertainties regarding the group.

Fortis Bank and BGL SA have Individual ratings of 'F'.  In line
with Fitch policy, this 'F' Individual rating is retrospective in
character, reflecting the agency's opinion that the banks needed
support.  Once clarity is achieved on how the support measures
will impact the banks' financial profile, management and business
model, Fitch will re-rate the banks and the Individual ratings
will be upgraded.

Fortis Bank

  -- Long-term IDR affirmed at 'A+', removed from RWP, assigned
     Stable Outlook

  -- Short-term IDR affirmed at 'F1+'

  -- Senior unsecured affirmed at 'A+', removed from RWP

  -- Subordinated debt affirmed at 'A', removed from RWP

  -- Support rating affirmed at '1',

  -- Support Rating Floor affirmed at 'A+'

  -- Hybrid capital instruments downgraded to 'BB-' (BB minus)
     from 'BBB-' (BBB minus), placed on RWN

  -- Individual rating 'F' is unaffected by the decision

BGL SA

  -- Long-term IDR affirmed at 'A+', removed from RWP, assigned
     Stable Outlook

  -- Short-term IDR affirmed at 'F1+'

  -- Senior unsecured affirmed at 'A+', removed from RWP

  -- Subordinated debt affirmed at 'A', removed from RWP

  -- Support rating affirmed at '1',

  -- Support Rating Floor affirmed at 'A+'

  -- Individual rating 'F' is unaffected by the decision

Fortis Luxembourg Finance

  -- Short-term debt affirmed at 'F1+'
  -- Senior unsecured affirmed at 'A+', removed from RWP
  -- Subordinated debt affirmed at 'A', removed from RWP


FORTIS INSURANCE: Moody's Reviews 'Ba1' Ratings for Likely Cuts
---------------------------------------------------------------
Moody's has announced that it has placed the ratings of Fortis
Insurance Belgium and Fortis Group under review for possible
downgrade.  A list of all the ratings is available at the end of
the press release.

The rating actions follow Fortis' shareholders vote to disapprove
the sale of Fortis Bank SA/NV to the Belgian State and the
subsequent refusal of the revised agreement signed between BNP
Paribas, Fortis and the Belgian government.

The review for possible downgrade reflects the new uncertainties
on the future of the Fortis Group resulting from this vote,
considerable uncertainties in respect of the extent of any support
from BNP Paribas to Fortis, and the increased risk profile of the
Group.

On the 11th of February, Fortis shareholders voted to reject the
sale of 50% plus one share of Fortis Bank SA/NV to the Belgian
State, and also to reject the subsequent sale of 75% of Fortis
Bank SA/NV and 10% of Fortis Insurance Belgium to BNP Paribas.  As
a result, the originally agreed "protocole d'accord" remains
valid, whereby BNP Paribas would acquire 75% of Fortis Bank SA/NV
and 100% of Fortis Insurance Belgium.

Moody's notes that the outcome of this vote has contributed to a
high level of legal complexity around the dismantling of the
Fortis Group.  First, although Moody's notes that the sale of
Fortis Bank SA/NV to the Belgian State has already been completed,
the negative vote of the shareholders might lead to legal disputes
between Fortis' shareholders and the Belgian government.  At the
same time, in spite of the negative vote of the shareholders, the
original "protocole d'accord" signed in October 2008 between
Fortis, BNP Paribas and the Belgian state remains a binding
contract for the three parties.  However, Moody's notes that there
is some likelihood that the original agreement may not complete as
originally planned, as a result of the shareholder vote and
potential legal interventions.  As a consequence, upwards rating
pressure at Fortis Insurance Belgium is reduced.  Furthermore, in
a scenario where BNP Paribas still proceeds with the transactions,
Moody's considers that any associated legal uncertainties,
including potential counter-claims from Fortis shareholder groups,
could be complex and take time to resolve, thus creating potential
damages to the insurance company franchise and to Fortis Group in
the short-term.  Finally, Moody's added that the risk profile of
Fortis Holding has the potential to increase, as a consequence of
its potential obligation to finance Royal Park Investments (the
SPV set up to manage some structured investments initially held by
Fortis Bank SA/NV) up to EUR6.9 billion.

Moody's review for possible downgrade will therefore focus on the
extent to which a) the original agreement is completed as
originally outlined b) the uncertainties of the last months have
damaged the franchise of Fortis Insurance Belgium and the
financial situation of the company.  In the event of the
"protocole d'accord" not being completed, Moody's added that, in
terms of ratings for Fortis Holding companies, Moody's ratings
reflect the financial strength of the Group's operating insurance
companies as well as the subordination of the holding company
creditors (traditionally captured through a three notch difference
between the insurance financial strength rating of an operating
company and the issuer rating of a holding company).  Nonetheless,
Moody's review will also focus on the new strategy of the Group
and the specific resources and obligations of the holding
companies (including the off-balance sheet items) and will
consider whether additional notching is required to reflect the
holding companies' financial position.

The review for possible downgrade for the P-2 short-term rating of
the Group will focus on the liquidity position of the Group in
light of the recent initiatives launched by the Group to repay its
senior obligations and the potential increased investment in the
structured assets SPV.

Commenting more specifically on the hybrid debts (FRESH and debts
issued by Fortis Hybrid Financing), the rating agency mentioned
that the respective mandatory convertible and junior / preferred
status of these securities could imply higher levels of loss as
the Fortis Group profile deteriorates, and Moody's review will
also consider the likelihood of breach of the mandatory deferral
triggers and whether any additional notching is necessary for
these junior instruments.  This also applies for the CASHES issued
by Fortis Bank SA/NV but including mandatory deferral based on
Fortis Group's financial situation.

These ratings have been affirmed and placed under review for
possible downgrade:

  -- Fortis Insurance Belgium - insurance financial strength
     rating at A2

  -- Fortis SA/NV - long term issuer rating at Baa2

  -- Fortis N.V. - long term issuer rating at Baa2

  -- Fortis Finance N.V. - backed senior unsecured debt rating at
     Baa2

  -- Fortis Finance N.V. - backed senior unsecured MTN debt
     rating at Baa2

  -- Fortis Finance N.V. - backed subordinated MTN debt rating at
     Baa3

  -- Fortis Finance N.V. - backed junior subordinated MTN debt
     rating at Baa3

  -- Fortis Finance N.V. - backed commercial paper at P-2

  -- Fortis Hybrid Financing - backed junior subordinated debt
     rating at Ba1

  -- Fortis Hybrid Financing - backed preferred stock debt rating
     at Ba1

  -- Fortfinlux S.A. - backed junior subordinated debt rating at
     Ba1

  -- Fortis Bank SA/NV - CASHES at Ba1

The date of the prior rating action on Fortis Insurance Belgium
and Fortis Group's ratings was on February 4, 2009, when Moody's
placed Fortis' ratings under review with direction uncertain
following a revised agreement between Fortis, BNP Paribas and the
Belgian State.

Headquartered in Brussels, Belgium and in Utrecht, the
Netherlands, Fortis Group had total assets of EUR974.3 billion and
reported shareholders' equity (including minority interest) of
EUR30.4 billion as of June 30, 2008.


FORTIS SA/NV: Shareholders Reject Sale of Dutch and Belgian Units
-----------------------------------------------------------------
The General Meeting of Shareholders of Fortis SA/NV, in accordance
with the ruling of the Brussels Court of Appeal on December 12
2008, on Wednesday, February 11, 2009, (in Brussels) voted on the
decisions of the Board of Directors on 3, 5 and 6 October 2008 and
the agreements concluded in implementation of those decisions,
concerning the sale of parts of the group to the Dutch and Belgian
States and to BNP Paribas.

The percentage of share capital represented in Brussels amounted
to 20,32%.

The General Meeting of Shareholders resolved as follows:

    * The proposal to approve the transactions with the Dutch
      State was rejected.  These transactions have, however, been
      concluded and can only be cancelled if both parties agree,
      or after legal proceedings to decide the merits of the case.

    * The proposals to approve the transactions with the Belgian
      State and BNP Paribas (including the changes laid down in
      the amendment to the Memorandum of Understanding) were
      likewise rejected.  This means that the (newly elected)
      Board of Directors will have to review the situation and
      announce the steps they intend to take as soon as possible.

The proposal to approve the sale of 100% of the shares of Fortis
Bank Nederland (Holding) N.V., Fortis Verzekeringen Nederland N.V.
and Fortis Corporate Insurance N.V. to the Dutch State on
October 3, 2008 in implementation of the decision of the Board of
Directors on October 3, 2008, as summarized in the shareholder
circular, was rejected with 57,01%.

The proposal to approve the sale of the remaining 50% + 1 shares
of Fortis Bank SA/NV to the Federal Participation and Investment
Corporation (SFPI/FPIM) on October 10, 2008 and, where
appropriate, the transactions to be effected with the Federal
Participation and Investment Corporation in implementation of the
decision of the Board of Directors on October 5 and 6, 2008, which
sale and transactions are summarized in the shareholder circular,
was rejected with 50,26%.

The proposal to approve the sale of 100% of the shares of Fortis
Insurance Belgium SA/NV to BNP Paribas on October 10, 2008 and the
transactions to be effected with BNP Paribas and the Federal
Participation and Investment Corporation have not been submitted
to a vote as the proposal was rejected.

                   New Board of Directors

The General Meeting of Shareholders of Fortis SA/NV elected Jozef
De Mey, Georges Ugeux and Jan Zegering Hadders as non-executive
members of the Board of Directors.

The General Meeting of Shareholders of Fortis N.V. on February 13,
2009, approved the appointment of Mr. De Mey, Mr. Ugeux and Mr.
Zegering Hadders as non-executive members of the Board of
Directors until the end of the Annual General Meeting in 2011.

Mr. Karel De Boeck had already been appointed to the Board during
the General Meetings of Shareholders on December 1 and 2, 2008
until the end of the Annual General Meeting in 2010.

The Board of Directors has elected Mr De Mey as its Chairman.
Mr. Ugeux has decided to step down.  Consequently, the new Board
of Directors has now been duly constituted.  The new Board will
assume its duties with immediate effect, subject to regulatory
approvals.  A total of 20.09% of the share capital was represented
in Utrecht.

As reported in the TCR-Europe on Feb. 3, 2009, citing Bloomberg
News,

On December 12, the Brussels Court of Appeal ruled in favor of a
group of shareholders seeking to block the carve-up of Fortis by a
trio of governments and the sale of assets to France's BNP
Paribas.

In September, Belgium, along with the Netherlands, and Luxembourg,
agreed to inject EUR11.2 billion into Fortis after its shares
slumped amid concerns about the company's solvency.  The deals
left Fortis with only its international insurance business, a 66%
stake in a EUR10.4 billion portfolio of structured credit products
and financial assets and liabilities of various financing
vehicles.

The bank's deal then with Belgium involved subsequent transfer of
75% of the Belgian state's 100% interest in Fortis to BNP Paribas.
Under that original deal, BNP Paribas will also acquire 100% of
Fortis Insurance Belgium for a total consideration of EUR5.73
billion in cash.

Following the Brussels Court ruling, Fortis said it incurred a net
loss of EUR295 million which reduced its pro forma net cash
position on September 30, 2008 from EUR2.1 billion to EUR1.8
billion and pro forma shareholders' equity from EUR6.7 billion to
EUR6.4 billion.

                      About Fortis N.V.

Headquartered in Brussels, Belgium, Fortis N.V. --
http://www.fortis.com/-- is an international provider of banking
and insurance services to personal, business and institutional
customers.  The Company operates in four core businesses: Retail
Banking, Asset Management and Private Banking, Merchant Banking
and Insurance.  The Company delivers a package of financial
products and services through its own channels and via
intermediaries and other partners.  In May 2007, Fortis N.V.
finalized the acquisition of a 50.45% stake in Pacific Century
Insurance Holdings Limited.  As of June 15, 2007, the Company had
acquired a 98.59% stake in Pacific Century Insurance Holdings
Limited.  In July 2008, the Company sold International Asset
Management Limited (IAM).

                       *     *     *

As reported by the Troubled Company Reporter on Oct. 9, 2008,
Moody's Investors Service downgraded Fortis SA/NV and Fortis N.V.
long term issuer ratings to Baa2 from Baa1, and the ratings were
placed under review for possible downgrade.  Debt ratings
benefiting from subordinated and preferred guarantees from the
joint holding companies were downgraded to Baa3 and Ba1
respectively.  Certain securities benefiting from joint and
several guarantees from the holding companies and Fortis ASR
Levensverzkering N.V. were confirmed at Baa3 with a developing
outlook.  Moody's also downgraded the insurance financial strength
rating of Fortis Insurance Company (Asia) Ltd (FICA) to Baa1 from
A3, and the backed senior unsecured debt of Fortis Capital (Asia)
Ltd, a wholly-owned subsidiary of FICA, to Baa2 from Baa1.  These
ratings now carry a developing outlook.  The Group's CP rating was
affirmed at P-2 and placed under review for possible downgrade.


FORTIS SA/NV: S&P Downgrades Counterparty Credit Ratings to 'BB/B'
------------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered the long- and
short-term counterparty credit ratings on Fortis SA/NV and Fortis
N.V., the two holding companies of the Belgian-Dutch bancassureur
Fortis, to 'BB/B' from 'BBB-/A-3'.  At the same time, S&P
maintained these ratings on CreditWatch with developing
implications, where they had been placed on Dec. 19, 2008.

S&P also lowered the junior subordinated debt rating on the
EUR1.25 billion FRESH hybrid instruments issued by FortFinLux S.A.
to 'CCC' from 'B' and changed the CreditWatch implications on this
rating to negative from developing.

Following these rating actions, the 'A' long-term counterparty
credit and insurer financial strength ratings on insurance
operating company Fortis Insurance Belgium and the 'BBB+' ratings
on the Fortis group's Portuguese insurance operating companies
Ocidental Companhia Portuguesa de Seguros de Vida, S.A., Ocidental
Companhia Portuguesa de Seguros, S.A., and Companhia Portuguesa de
Seguros de Saϊde, S.A. remain unchanged.  The CreditWatch
placements, with negative implications for FIB and developing
implications for the other insurance operating companies, also
remain unchanged.

The 'BB' junior subordinated debt ratings on hybrid instruments
issued by Fortis Hybrid Financing are unchanged, as is the
CreditWatch placement with negative implications on these ratings.
The coupon payments on these instruments are made by FIB and
Fortis Bank SA/NV (FBB; A/Watch Pos/A-1; majority owned by the
Belgian government since October 2008).

"The rating actions on the Fortis group reflect S&P's view of the
heightened financial and legal risks that the Fortis group faces
following the Fortis SA/NV general shareholders' meeting on
Feb. 11, 2009, in which shareholders voted against the amended
versions of the Oct. 10, 2008, agreements," said Standard & Poor's
credit analyst Elisabeth Grandin.

The October agreements ("Protocole d'Accord"), signed by the
Belgian government, the Fortis group, and BNP Paribas (BNPP;
AA/Negative/A-1+), outline the Fortis group's dismantlement and
set the terms of the Belgian government's transfer of a 75% stake
in FBB to BNPP, as well as several related transactions.

The rating action on the FRESH hybrid instruments reflects S&P's
view of the increased potential for coupon suspension.

S&P considers that financial and legal risks are concentrated at
Fortis SA/NV and Fortis N.V. and that these risks are likely to
have only a limited impact on the insurance operating companies
mentioned above.

"It is too soon for us to fully assess the consequences of the
shareholders' rejection, but at this stage S&P believes
repercussions for Fortis group will be negative," said Ms.
Grandin.

S&P understands that despite the "no" vote, the October agreements
remain binding for the Fortis group.

S&P considers that the shareholders' non-approval increases the
Fortis group's risk profile due to its exposure to the possible
execution of some transactions under the October agreements.  S&P
understands from the agreements that the Fortis group would have
to purchase a 66% stake in a special purpose vehicle, to which FBB
would have to transfer EUR10.4 billion in impaired structured
securities.  In addition to heightening Fortis' exposure to
potential market risk, this transaction would generate an
estimated EUR3.9 billion in funding needs just when Fortis would
not benefit from the cash proceeds of the FIB disposal.

"We intend to resolve the CreditWatch status once S&P has obtained
more detailed information about how the different parties will
seek to execute the transactions decided under the October 2008
agreements and what the ensuing impact will be on the Fortis
group's cash position and risk profile," said Ms. Grandin.

S&P may affirm the 'BB' ratings on Fortis SA/NV and Fortis N.V.,
or raise the ratings by one or two notches, depending, among other
things, on S&P's review of FIB's stand-alone credit profile, the
scope of the legal risk to the Fortis group, and how much the
impaired securities portfolio could alter the Fortis group's
financial profile.

If S&P believes that the financial and legal risks stemming from
the execution of certain of the transactions jeopardize the Fortis
group, S&P may downgrade Fortis SA/NV and Fortis N.V. by as much
as several notches.  In this case, S&P are, absent other
developments, unlikely to lower the ratings on the insurance
operating entities to the same extent, given their regulated
status.


===========
C Y P R U S
===========


KOMMUNALKREDIT INT'L: Fitch Junks Rating on Preferred Securities
----------------------------------------------------------------
Fitch Ratings has downgraded Cyprus-based Kommunalkredit
International Bank Ltd's US$50 million perpetual non-cumulative
non-voting preferred securities (ISIN: XS0272779009) to 'CCC' from
'A'.  The preferred securities remain on Rating Watch Negative.

This rating action follows KIB's decision to defer coupon payments
in 2009 following the announcement of a significant anticipated
loss for the financial year 2008.  A Recovery Rating of 'RR4' is
assigned, reflecting average recovery prospects on these notes.

The RWN will be resolved once greater clarity regarding KIB's
future business model, including the position of preference
shareholders, has been obtained.

KIB announced on February 13, 2009 that it will defer coupon
payments on all instruments where distribution is linked to the
generation of a distributable profit including the above-mentioned
issue.  KIB also announced that following the recent
nationalization of its Austrian parent, Kommunalkredit Austria
(Long-term Issuer Default (IDR) 'A+'/Rating Watch Positive,
Individual Rating 'F'), KA is considering integrating KIB into KA
and discontinuing KIB's activities (see separate rating action
commentary published November 4, 2008 for further detail on the
nationalization).

KIB, the fully-owned Cypriot subsidiary of KA, is rated Long-term
IDR 'A+ and Short-term IDR 'F1' - both on RWP - and Support '1'.


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


AUDI ZENTRUM: Claims Registration Period Ends April 7
-----------------------------------------------------
Creditors of Audi Zentrum Magdeburg GmbH have until April 7, 2009,
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 May 7, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The Distric Court of Wolfsburg
         Hall D
         Rothenfelder Strasse 43
         38440 Wolfsburg
         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:

         Peter Steuerwald
         Bruchtorwall 6
         38100 Braunschweig
         Germany
         Tel: 0531 / 244 80-0
         Fax: 0531 / 244 80-80
         E-mail: psteuerwald@hausherr-steuerwald.de

The District Court opened bankruptcy proceedings against the
company on Feb. 2, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Audi Zentrum Magdeburg GmbH
         Attn: Frank-Peter Gemballa, Manager
         Mittelstrasse 10
         39114 Magdeburg
         Germany


FOOD CONCEPTION: Claims Registration Period Ends May 25
-------------------------------------------------------
Creditors of Food Conception GmbH have until May 25, 2009, 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 June 26, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Koblenz
         Hall 123
         Main Court
         Karmeliterstrasse 14
         56068 Koblenz
         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:

         Jens Lieser
         Josef-Goerres-Platz 5
         56068 Koblenz
         Germany
         Tel: 0261/ 304 – 790
         Fax: 0261/ 911 – 4729
         E-mail: info@lieser-rechtsanwaelte.de
         Website: http://www.lieser-rechtsanwaelte.de

The District Court opened bankruptcy proceedings against the
company on Feb. 3, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Food Conception GmbH
         Loehrstrasse 103
         56068 Koblenz
         Germany

         Attn: Yvonne Geisen-Merkler, Manager
         Talstrasse 29
         56727 Mayen
         Germany


REVITA GMBH: Claims Registration Period Ends March 22
-----------------------------------------------------
Creditors of Revita GmbH have until March 22, 20009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:37 a.m. on April 21, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Mayen
         Hall 12
         St. Veit-Strasse 38
         56727 Mayen
         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. Gitta Werner
         Bahnhofstr. 34
         56626 Andernach
         Germany
         Tel: 02632/4969810
         Fax: 02632/4969811
         E-mail: info@kanzlei-werner.info

The District Court opened bankruptcy proceedings against the
company on Feb. 3, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Revita GmbH
         Attn: Oleg Chelemei, Manager
         Rennweg
         56626 Andernach
         Germany


SPORTS GALLERY: Claims Registration Period Ends March 19
--------------------------------------------------------
Creditors of Sports Gallery GmbH have until March 19, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:12 a.m. on April 3, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

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

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

The District Court opened bankruptcy proceedings against the
company on Feb. 2, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Sports Gallery GmbH
         Koenigstr. 81-83
         47798 Krefeld
         Germany

         Attn: Ralph Tilmes, Manager
         Boennersdyk 79
         47803 Krefeld
         Germany


VARIO SYSTEMBAU: Claims Registration Period Ends March 18
---------------------------------------------------------
Creditors of Vario Systembau und Projektentwicklungsgesellschaft
mbH have until March 18, 2009, 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 April 29, 2009, 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:

         Dr. Juergen Wallner
         Bautzner Strasse 102
         01099 Dresden
         Germany
         Website: www.wallnerweiss.info

The District Court opened bankruptcy proceedings against the
company on Feb. 4, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         VARIO Systembau und
         Projektentwicklungsgesellschaft mbH
         Attn: Siegfried Russig, Manager
         Koenigsbruecker Str. 17
         01099 Dresden
         Germany


WHOOPI FASHION: Claims Registration Period Ends April 8
-------------------------------------------------------
Creditors of Whoopi Fashion GmbH have until April 8, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on April 29, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court Muenster
         Meeting Hall 101 B
         Gerichtsstr. 2-6
         48149 Muenster
         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:

         Ralph Schmid
         Duelmener Str. 92
         48653 Coesfeld
         Germany
         Tel: 02541/915-01
         Fax: 02541-915600

The District Court opened bankruptcy proceedings against the
company on Feb. 1, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Whoopi Fashion GmbH
         Attn: Sanjeev Swamy, Manager
         Ravensberger Strasse 41
         32312 Luebbecke
         Germany


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


CLOVERIE PLC: Moody's Junks Ratings on JPY5 Bil. Notes
------------------------------------------------------
Moody's Investors Service announced it has downgraded its rating
of notes issued by Cloverie Plc.  This is a managed synthetic CDO
that references mainly global corporate entities.

Moody's explained that the rating action taken is the result of
(i) deterioration in the credit quality of the transaction's
reference portfolio and the determination of loss of the reference
portfolio due to credit events and (ii) the application of revised
and updated key modeling parameter assumptions that Moody's uses
to rate and monitor ratings of Corporate Synthetic CDOs.  Moody's
announced the changes to these assumptions in a press release
published on January 15, 2009.  The revisions affect key
parameters in Moody's model for rating Corporate Synthetic CDOs:
default probability, asset correlation, and other credit
indicators such as ratings reviews and outlooks.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports below:

  -- Moody's Approach To Rating Corporate Collateralized Synthetic
     Obligations (December 2008)

The rating action is:

Cloverie Plc

1) Series 2007-26 JPY5,000,000,000 Floating Rate Portfolio Credit
Linked Notes due 2014

  -- Current Rating: Caa3

  -- Prior Rating: Baa2, on review for possible downgrade

  -- Prior Rating Date: 18 September 2008, Baa2, placed under
     review for possible downgrade

Moody's Investors Service is a publisher of rating opinions and
research.  It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.


GOLDEN DISC: Interim Examiner Appointed; Owes Sony EUR1.38 Mln
--------------------------------------------------------------
Mary Carolan at The Irish Times reports that the High Court's Mr
Justice Roderick Murphy has appointed an interim examiner to music
retail group Golden Disc.

The court said Friday last week that on the application of Sony
Entertainment Ltd's Lyndon MacCann SC, it would appoint Michael
McAteer of Grant Thornton as interim examiner to the group, which
operates 20 stores around the country, including six franchised
stores, the report states.

The court is set to hear the petition for examinership on February
23, the report notes.

The report relates according to Golden Disc's financial adviser,
the group was now insolvent and had proposed a voluntary scheme of
arrangement for creditors.  The report adds that of the group's 20
stores, six were making losses.

Golden Disc's total liabilities stood at some EUR9.5 million,
EUR1.38 million of which is owed to Baggot Sreet, Dublin-based
Sony, the report discloses citing the financial adviser.

The financial adviser attributed the insolvency to significant
rent increases across several stores, especially Dublin city
center stores, the report recounts.

Sony, as cited by the report, said it is not prepared to continue
providing supplies in the absence of court petition.  In its
petition, Sony said it believes it supplies some 30 per cent of
Golden Disc's music products, the report recalls.

However, Sony believes Golden Discs has a reasonable prospect of
survival as a going concern provided certain measures are put into
effect including the closure of loss-making stores, the report
says.

It is understood eight of the stores operated by the group are
operating profitably while four of the six franchised stores are
also operating profitably, the report notes.


HERALD LTD: Moody's Junks Ratings on EUR3 Mln Tranche D Notes
-------------------------------------------------------------
Moody's Investors Service announced it has downgraded its ratings
of one class of notes issued by Herald Limited.

This transaction is a repackaging of a CDO's tranche.  This rating
action is the result of the downgrade of TCW Oak Canyon Funding
Tranche D swap to Ca from Ba2, the reference entity in this
transaction.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for repackaged securities as described in Moody's Special Reports
below:

  -- Repackaged Securities" (October 2001)

  -- Moody's Refines It's Approach to Rating Structured Notes
     (July 1997)

The rating actions are:

Herald Limited:

(1) Herald Limited/TCW Oak Canyon Funding EUR3,000,000 Tranche D
Floating Rate Credit Linked Secured Notes due 2012

  -- Current Rating: Ca

  -- Prior Rating: Ba2

  -- Prior Rating Action Date: 31 October 2008, downgraded to Ba2
     from A2


IRIDAL PLC: Moody's Junks Ratings on EUR3 Mil. Tranche B Notes
--------------------------------------------------------------
Moody's Investors Service announced it has downgraded its ratings
of one class of notes issued by Iridal PLC.

This transaction is a repackaging of a CDO tranche.This rating
action is the result of the downgrade of TCW Oak Canyon Funding
Tranche B swap to Caa2 from Baa2, the reference entity in this
transaction.  For more information please see the February 9 press
release regarding the rating action on the tranche B of TCW Oak
Canyon Funding.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for repackaged securities as described in Moody's Special Reports
below:

  -- Repackaged Securities" (October 2001)

  -- Moody's Refines Its Approach to Rating Structured Notes
     (July 1997)

The rating actions are:

Iridal Public Limited Company:

(1) Series 2 EUR3,000,000 Tranche B Floating Rate Credit
     Linked Secured Notes due 2012

  -- Current Rating: Caa2

  -- Prior Rating: Baa2

  -- Prior Rating Action Date: 31 October 2008, downgraded to Baa2
     from Aa3


TULFARRIS HOUSE: Goes Into Examinership; Grant Thornton Appointed
-----------------------------------------------------------------
Laura Noonan at Independent.ie reports that the Tulfarris House
and Gold Resort in Wicklow has gone into examinership less than a
month before the property is due to reopen after major
refurbishment.

Grant Thornton had been appointed examiner of the company, the
report discloses.

"As far as we're concerned, it's business as usual, we'll be going
ahead with the reopening in March, and we'll be working with Grant
Thornton on that," the report quoted Marco Cassani, Tulfarris'
manager, as saying.


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


DA VINCI: Fitch Junks Ratings on EUR36.4-Mil. of Notes
------------------------------------------------------
Fitch Ratings has downgraded the notes issued by Da Vinci
Synthetic plc and removed the notes from Rating Watch Negative:

  -- EUR25.9 million class A: downgraded to 'B-' (B minus)
     from 'A-' (A minus); removed from RWN; assigned a
     Negative Outlook

  -- EUR20.8 million class B: downgraded to 'CCC' from 'BBB';
     removed from RWN; assigned Distressed Rating of 'DR1'

  -- EUR15.6 million class C: downgraded to 'CC' from 'BB';
     removed from RWN; assigned Distressed Rating of 'DR4'

The rating action follows the recent credit event on eight
reference obligations, amounting to approximately US$68 million,
triggered by the default of Alitalia combined with a change in
Fitch's view with regards to the recovery rates for the
transaction in light of the difficult conditions being experienced
by the global airline industry.

The transaction is a synthetic securitization of a portfolio of
financial leases and loans secured on aircraft and associated
aircraft collateral.  Merrill Lynch International Bank Limited
(rated 'A+'/F1+') entered into a credit default swap with Intesa
Sanpaolo (IntesaSP) ('AA-'((AA minus))/'F1+') under which it sold
protection on a reference portfolio of up to US$650 million.  MLI
tranched the CDS into a senior piece, mezzanine piece and a first
loss piece of US$26 million.  The mezzanine piece was taken by the
issuer and was tranched further to represent the class A, B and C
notes.  All financial lease or loan obligations (the reference
portfolio) relate to the financing or re-financing of aircraft.
The current exposure to Alitalia amounts to approximately 16% of
the total portfolio.

A credit event was called by IntesaSP on January 28, 2009.  The
reference obligations associated with Alitalia are secured by
eight aircraft.  The administrator of the Alitalia bankruptcy
estate has already listed these aircraft for sale.  Once the sale
process is completed, the net sale proceeds will be used to
calculate the losses which will be assigned to the transaction.
If the aircraft cannot be sold by January 28, 2010, then an
aircraft desktop valuation will be used to determine the losses
which will be attributed to the transaction.

Fitch expects 2009 to be another challenging year for the airline
industry.  Some airlines have already announced plans to cut
capacity which will most likely increase the number of grounded
and available-for-sale aircraft.  In light of these developments,
Fitch believes that aircraft values will be negatively impacted in
the near future.  Fitch's concern on the recovery aspect of
Alitalia aircraft also reflects the maintenance status of the
aircraft as reported on the administrator's website.  All eight
aircraft are currently overdue for scheduled airframe maintenance
procedures.  Fitch believes that potential buyers will thus adjust
downward their offer prices in order to take into account the
maintenance which needs to be completed in order to ensure the
aircraft is in an airworthiness condition.

Fitch expects that reduced recoveries on Alitalia's aircraft could
go above the first loss piece and impact all the rated tranches
including class A, which currently benefits from a credit
enhancement of 11%.  Fitch has run different stress scenarios and
the agency has noted that if the net aircraft sale proceeds are
below 39% of the outstanding reference obligations associated with
Alitalia, then all of the rated notes will be negatively impacted.
However, if the aircraft desktop values are used to determine the
losses for the transaction then the recovery proceeds will likely
be higher than the aircraft sale proceeds which can be currently
achieved in the market.  This is due to the fact that the aircraft
desktop value pertains to an idealized aircraft and aircraft
trading market combination and it may not reflect the actual value
of a specific aircraft.

Fitch believes that the ratings, Outlooks and Distressed Ratings
now reflect the uncertainty related to the recovery proceeds which
can be achieved in current economic conditions.  The agency will
continue to monitor the transaction, the airline sector and the
market value of aircraft, and update the ratings of the notes as
appropriate.


EUROHOME MORTGAGES: S&P Cuts Ratings on Class D Notes to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered and placed on
CreditWatch negative its credit rating on the class D notes issued
by Eurohome (Italy) Mortgages S.r.l.  At the same time, S&P placed
on CreditWatch negative S&P's ratings on the class B and C notes.
The class A notes are unaffected.

The rating actions follow a review of the transaction's
performance in light of the recent performance of the underlying
mortgage asset pool, namely a steep upturn in arrears and
defaults.

Delinquencies in the transaction accumulated quickly during the
first four collection periods since closing.  Arrears plus
defaults are at about 9% of the outstanding collateral balance,
well above the average recorded in Italian residential mortgage-
backed securities transactions.

However, the collateral backing the Eurohome Italy transaction is
not typical for the Italian RMBS market.  The mortgage pool
includes both prime borrowers and those who might not obtain
mortgages from the mainstream lenders.  Typically, these customers
are atypical workers, self-employed individuals, non-EU citizens,
or borrowers that are refinancing or "cashing out".  The portfolio
was also characterized at closing by higher-than-average
loan-to-value ratios and low seasoning.  These collateral
characteristics are reflected in the higher-than-average credit
enhancement at all rating levels.

S&P's analysis of the current underlying asset pool showed that
arrears and defaults are mainly concentrated in the higher LTV
ratio bands, especially in connection with non-EU nationals and
the self-employed.  Loans granted to buy a property have so far
performed worse than those made for refinancing or cashing out—
this difference may be explained by the fact that the remortgage
loans have comparatively lower LTV ratios.  Even though the low
share of fixed-rate loans limits the scope of S&P's analysis,
floating-rate mortgage loans show substantially higher arrears
levels.  Evidently borrowers have felt the strain of the spike in
short-term interest rates recorded in 2008.  Going forward,
performance could benefit from the current low interest rate
environment.

On the back of the swift increase in arrears and defaults, some
performance triggers were breached, meaning that the portfolio can
no longer revolve.  The concentration of defaults at the past two
interest payment dates has led to a cumulative draw under the cash
reserve of about EUR3 million.  The cash reserve now stands at
around EUR0.9 million, 24% of the target balance.  Given the
current arrears levels and the definition of default featured in
the transaction (the earliest of "sofferenza" and in arrears for
more than 12 months), S&P believes the reserve will be depleted
soon.

Liquidity in the transaction is provided by the combined
waterfall, allowing the use of principal receipts to pay senior
items and interest on the notes, and a liquidity facility.

S&P will now carry out a more detailed analysis of this
transaction to investigate whether the current ratings on the
class B, C, and D notes are consistent with the inherent risk
profile of the mortgage loan portfolio.  S&P will announce the
results of this analysis in due course.  The class A notes are
currently unaffected.

This transaction is backed by a mortgage pool secured over
residential and commercial properties in Italy and originated by
Sofia, a division of Deutsche Bank Mutui.  Sofia originates mostly
through third-party brokers.

                           Ratings List

                Eurohome (Italy) Mortgages S.r.l.
       EUR256.9 Million Mortgage-Backed Floating-Rate Notes

        Rating Lowered and Placed on CreditWatch Negative

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

              Ratings Placed on CreditWatch Negative

                                    Rating
                                    ------
          Class             To                     From
          -----             --                     ----
          B                 AA/Watch Neg           AA
          C                 A/Watch Neg            A


ITA 8: Moody's Cuts Ratings on Two Classes of Notes to Low-B
------------------------------------------------------------
Moody's Investors Service has taken this rating action on notes
issued by Italfinance Securitisation Vehicle S.r.l. (ITA 8)
(amounts below reflect initial note balance):

  -- EUR959,000,000 Series 2005-1-A Asset Backed Floating Rate
     Notes due March 2023, Downgraded to Aa1 from Aaa; previously
     on 18 December 2008 Placed Under Review for Possible
     Downgrade;

  -- EUR83,000,000 Series 2005-1-B Asset Backed Floating Rate
     Notes due March 2023, Downgraded to A3 from A2; previously on
     18 December 2008 Placed Under Review for Possible Downgrade;

  -- EUR56,000,000 Series 2005-1-C Asset Backed Floating Rate
     Notes due March 2023, Downgraded to Ba3 from Baa3; previously
     on 18 December 2008 Placed Under Review for Possible
     Downgrade; and

  -- EUR18,500,000 Series 2005-1-D Asset Backed Floating Rate
     Notes due March 2023, Downgraded to B3 from Ba1; previously
     on 18 December 2008 Placed Under Review for Possible
     Downgrade.

The rating action has been prompted by the worse-than-expected
collateral performance.  The collateral portfolio has experienced
so far defaults higher than Moody's initially expected.  As of
December 2008 reporting date, the transaction has reported a
cumulative default rate of 2.8% of the total securitized pool
whereas Moody's initial mean default assumption was in the range
of 2.3% to 2.8% of securitized pool balance over the life of the
transaction.  In addition, the total delinquency level has
increased from 8.08% to 10.21% over the last quarter.  The reserve
fund has not suffered any drawing since closing.

Moody's has revised its assumptions since closing.  The mean
default assumption is now in the range of 6.75% to 7.25% as a
percent of current outstanding balance.  The volatility of the
mean default rate was in the range of 64%-69% at closing versus
48%-52% to date.  Further the recovery rate has been revised
downwards to a range of 40% to 50% compared to 45% to 55% at
closing.

ITA 8 is the 12th transaction originated by Banca Italease S.p.A.
(Ba1) (60.6% directly originated by Banca Italease S.p.A. and
39.4% originated by Mercantile Leasing, 100% owned by Banca
Italease S.p.A.  The securitized portfolio includes receivables
derived from auto, equipment and real estate lease contracts
(excluding the relative residual value component of the
contracts).  As of the December 2008 interest payment date the
real estate pool consists of 72.5% of the pool, compared to 43.5%
at closing, the equipment pool 21.5%, compared to 40.5% and the
vehicle pool 6.0% compared to 16.0%.

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


SAFILO SPA: Moody's Cuts Corporate Family Rating to 'B2'
--------------------------------------------------------
Moody's Investors Service has downgraded Safilo S.p.A.'s Corporate
Family Rating to B2 from B1 and the senior unsecured rating on the
EUR195 million notes due 2013 issued by Safilo Capital
International SA to Caa1 from B3.  At the same time, Moody's has
placed the ratings on review for possible further downgrade.

"The downgrade reflects Moody's expectation that 2009 will
continue to be a challenging year for the company," says Paolo
Leschiutta, a Vice President -- Senior Analyst in Moody's
Corporate Finance Group.  "Safilo was able to control operating
margin erosion and inventory levels during FY 2008.  However,
Moody's remains concerned about the potential negative impact on
Safilo's operating performance over the coming months due to the
ongoing softness in consumer spending and the volatility of
foreign exchange rates, namely the US dollar and the British pound
against the euro."

"Moody's has placed the ratings on review for further possible
downgrade, mainly due to uncertainties surrounding Safilo's need
to renegotiate existing financial covenants in its main bank
facility and the company's ability to meet future payment
obligations," explains Mr. Leschiutta.  Although Moody's
incorporates in the existing ratings, the expectation that banks
will remain supportive (as demonstrated by the renegotiation of
the financial leverage covenant for the test at December 2008),
the rating agency cautions that the financial markets remain
unsettled and that higher interest costs are likely.

Moody's ratings review will focus on these issues: (i) the
company's ability to renegotiate existing financial covenants to
levels more in line with the changed economic environment (Moody's
notes that the next covenant testing date is June 2009); (ii) the
likelihood of further deterioration in consumer spending in
general and in the luxury eyewear segment in particular; and (iii)
the expected credit profile of the company going forward including
the ability to make debt repayments as scheduled. The ratings are
likely to be downgraded further should Safilo fail to achieve a
timely renegotiation of its covenants.

Safilo's CFR reflects the company's position as the number one
luxury eyewear manufacturer in the world, its good business
diversification by geographic area and business segment, and its
strong portfolio of brands that compensate for the exposure to the
cyclical fashion industry and mitigate the risk of licence
termination.  Furthermore, some of its product licences have been
recently renewed (including the important one with Gucci).

However, Moody's notes that Safilo's relatively low business risk
profile is weakened by the deterioration in the general economic
environment, which is resulting in lower demand in specific
markets, as well as by the company's relatively high operating
leverage and a degree of negative movement in foreign exchange
rates.  In addition, Moody's would expect the company to maintain
positive free cash flow generation (after dividends) on an ongoing
basis.

Downgrades:

Issuer: Safilo Capital International SA

  -- Senior Unsecured Bond, Downgraded to Caa1 (LGD5, 89%) from B3

Issuer: Safilo S.p.A.

  -- Corporate Family Rating and Probability of Default Rating,
     Downgraded to B2 from B1

All ratings are placed on Review for Possible Downgrade.
The last rating action on Safilo was implemented on November 18,
2008, when Moody's downgraded its CFR to B1 from Ba3 with negative
outlook and senior unsecured rating on the EUR195 million notes
due 2013 issued by Safilo Capital International SA to B3 from B2
with negative outlook.  Safilo's ratings were assigned by
evaluating factors Moody's believe are relevant to the credit
profile of the issuer, such as (i) the business risk and
competitive position of the company versus others within its
industry, (ii) the capital structure and financial risk of the
company, (iii) the projected performance of the company over the
near to intermediate term, and (iv) management's track record and
tolerance for risk.  These attributes were compared against other
issuers both within and outside of Safilo's core industry and the
company's ratings are believed to be comparable to those of other
issuers of similar credit risk.

Headquartered in Padua, Italy, Safilo SpA is the world's leading
manufacturer of high-end and luxury eyewear, generating
approximately EUR1.15 billion of revenues during FY 2008.  It has
been listed on the Italian Stock Exchange since December 2005,
with almost 60% of floating shares.  The company operates in more
than 30 countries and sells its products in over 130 countries,
offering a strong portfolio of both owned and licensed brands.


SAFILO SPA: S&P Downgrades Corporate Credit Rating to 'B-'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Italy-based eyewear manufacturer Safilo SpA to
'B-' from 'B'.  At the same time, the issue rating on Safilo's
EUR195 million 9.625% senior subordinated notes due 2013, issued
by Safilo Capital International S.A. was lowered to 'CCC+' from
'B', reflecting a change in the recovery rating on these
obligations.  The recovery rating was lowered to '5' from '4',
indicating that S&P now expect a modest (10%-30%) recovery in the
event of a payment default.  All ratings have been placed on
CreditWatch with negative implications.

"The rating actions reflect Standard & Poor's view that the
persistent discretionary consumer downturn is affecting Safilo's
operating performance and liquidity position beyond S&P's initial
expectations," said Standard & Poor's credit analyst Diego Festa.
In particular, the CreditWatch placement relays S&P's concern over
near-term debt service: Safilo's free operating cash flows could
be insufficient to cover current short-term debt maturities, which
include the payment of approximately EUR40 million of the
amortizing Facility A of the senior bank loan due December 2011,
besides the roll-over of the uncommitted bilateral lines.  The
combination of higher debt levels and ongoing pressure on
profitability--management has confirmed that order book for the
January 2009 collections was down by a high single digit on 2008--
in S&P's opinion may considerably reduce headroom in the company's
available cash resources, which mainly consist of the undrawn
portion on the senior revolving credit facility due 2012.  This
means that Safilo will be relying on continued bank support to
ensure unimpeded flow of funding over the short term.

"We expect to reassess the CreditWatch placement within the next
three months, taking into account Safilo's progress with its
negotiations with the banking group," said Mr. Festa.  In S&P's
view, Safilo will need to maintain prudent financial policies and
treasury management to adjust to the currently sluggish trading
environment, and to conserve cash to ease pressure on the
ratings.  The outcome of the CreditWatch status will depend on the
next steps that the company takes in respect of the negotiation
and its funding.


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


AGRO TECH-TSK: Proof of Claim Deadline Slated for March 21
----------------------------------------------------------
LLP Agro Tech-Tsk has declared insolvency.  Creditors have until
March 21, 2009, to submit written proofs of claim to:

         LLP Agro Tech-Tsk
         Timiryazevo
         Timiryazevsky
         North Kazakhstan
         Kazakhstan


AINA LINE: Creditors Must File Claims by March 21
-------------------------------------------------
LLP Construction Company Aina Line Build has declared insolvency.
Creditors have until March 21, 2009, to submit written proofs of
claim to:

         LLP Construction Company Aina Line Build
         Kosmodemyanskaya Str. 2d
         Micro District Koktobe
         Almaty
         Kazakhstan
         Tel: 8 (7272) 58-40-50


ASIA TRANSIT: Claims Filing Period Ends March 21
------------------------------------------------
LLP Asia Transit Group has declared insolvency.  Creditors have
until March 21, 2009, to submit written proofs of claim to:

         LLP Asia Transit Group
         Room 3
         050010 Almaty
         Kazakhstan


BAGRUS LLP: Creditors' Proofs of Claim Due on March 21
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP Bagrus insolvent.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Karaganda
         Jambyl Str. 9
         Karaganda
         Kazakhstan


BARYS SPETS: Claims Registration Period Ends March 21
-----------------------------------------------------
LLP Barys Spets Electronica has declared insolvency.  Creditors
have until March 21, 2009, to submit written proofs of claim to:

         LLP Barys Spets Electronica
         Micro District Karatal, 36-9
         Taldykorgan
         Almaty


BIBARS LLP: Proof of Claim Deadline Slated for March 21
-------------------------------------------------------
The Specialized Inter-Regional Economic Court of Karaganda has
declared LLP BIBARS insolvent.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Karaganda
         Jambyl Str. 9
         Karaganda
         Kazakhstan


ER SAKEN N: Creditors Must File Claims by March 21
--------------------------------------------------
The Specialized Inter-Regional Economic Court of South Kazakhstan
has declared LLP Er Saken N insolvent.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan


MEDEU LLP: Claims Filing Period Ends March 21
---------------------------------------------
The Specialized Inter-Regional Economic Court of Jambyl has
declared LLP Agricultural Enterprise Medeu insolvent.

Creditors have until March 21, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Jambyl
         Suleimanov Str. 17
         Taraz
         Jambyl
         Kazakhstan


TARAZ-REG STROY: Creditors' Proofs of Claim Due on March 21
-----------------------------------------------------------
LLP Construction Company Taraz-Reg Stroy has declared insolvency.
Creditors have until March 21, 2009, to submit written proofs of
claim to:

         LLP Construction Company Taraz-Reg Stroy
         Musy Djalil Str. 1
         Taraz
         Jambyl
         Kazakhstan


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


D PROPERTY LLC: Creditors Must File Claims by March 6
-----------------------------------------------------
LLC D Property has declared insolvency.  Creditors have until
March 6, 2009, to submit written proofs of claim to:

         LLC D Property
         Tynystanov Str. 231-3
         Bishkek
         Kazakhstan
         Tel: (+996 312) 90-15-22


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


ARKHANGELSKIY WOOD: Creditors Must File Claims by March 6
---------------------------------------------------------
Creditors of LLC Arkhangelskiy Wood Structures Plant (TIN
2907011424, PSRN 1062907013300, RVC 290701001) have until
March 6, 2009, to submit proofs of claims to:

         Ya. Khaduri
         Temporary Insolvency Manager
         Apt. 2
         Krasnoflotskaya St. 5
         163020 Arkhangelsk
         Russia
         Tel: 8 (8182) 26–92–29.

The Arbitration Court of Arkhangelskaya will convene at
2:15 p.m. on June 22, 2009, to hear bankruptcy supervision
procedure.  The case is docketed under Case No. A05–14333/2008.

The Debtor can be reached at:

         LLC Arkhangelskiy Wood Structures Plant
         Zavodskaya St. 25
         Vel'sk
         165151 Arkhangelskaya
         Russia


ASTRAKHAN INDUSTRIAL BANK OJSC: Creditors May File Claims
---------------------------------------------------------
Creditors of OJSC Astrakhan Industrial Bank (Registration Number
118) have to submit proofs of claims to:

         Ukrainskaya St. 3M7
         414011 Astrakhan
         Russia


DINSK-SAKHAR OJSC: Creditors Must File Claims by March 6
--------------------------------------------------------
Creditors of OJSC Dinsk-Sakhar (Food Industry, Sugar Production)
have until March 6, 2009, to submit proofs of claims to:

         L. Mirabyan
         Temporary Insolvency Manager
         Post User Box 126
         117303 Moscow
         Russia

The Arbitration Court of Krasnodarskiy will convene at
10:00 a.m. on July 1, 2009, to hear bankruptcy supervision
procedure.  The case is docketed under Case No. A32–26716/2008–
38/1503B.

The Debtor can be reached at:

         OJSC Dinsk-Sakhar
         Gogolya St. 96
         Dinskaya
         353202 Krasnodarskiy
         Russia


GAZ-INVEST-BANK OJSC: Creditors Must File Claims by April 6
-----------------------------------------------------------
Creditors of OJSC Gaz-Invest-Bank Commercial Bank (TIN
7100002678, registration Number 3212) have until April 6, 2009, to
submit proofs of claims to:

         Investment Insurance Agency
         Acting as Insolvency Manager
         Post User Box 48
         109052 Moscow
         Russia
         Tel: 8–800–200–08–05

The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A40–89268/08–101–173B.

The Debtor can be reached at:

         OJSC Gaz-Invest-Bank
         Building 3
         Shlyuzovaya naberezhnaya 6
         115114 Moscow
         Russia


GIRKUBS OJSC: Creditors Must File Claims by March 6
---------------------------------------------------
Creditors of OJSC Girkubs (Food Industry, Sand Sugar Production)
have until March 6, 2009, to submit proofs of claims to:

         L. Mirabyan
         Temporary Insolvency Manager
         Post User Box 126
         117303 Moscow
         Russia

The Arbitration Court of Krasnodarskiy will convene at 2:15 p.m.
on July 2, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. A-32–25485/2008–2/1517B.

The Debtor can be reached at:

         OJSC Girkubs
         Oktyabrskaya St. 2
         Girey-2
         Gulkevichskiy
         352162 Krasnodarskiy
         Russia


MAGNITOGORSK OAO: S&P Affirms 'BB' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Russian steel producer OAO Magnitogorsk Metallurgical Kombinat to
negative from stable, as steel market conditions and continuing
heavy investments will pressure MMK's cash flows and liquidity.
At the same time, S&P affirmed the 'BB' long-term and 'B' short-
term corporate credit ratings and the 'ruAA' Russia national scale
rating.

"The outlook revision reflects a combination of sharply
deteriorating steel market conditions and increased liquidity
risks related to MMK's high short-term debt and significant
investment ambitions that are likely to turn free cash flow
negative in 2009-2010," said Standard & Poor's credit analyst
Andrey Nikolaev.  "In 2009, under S&P's conservative credit
scenario, S&P expects MMK's volumes to drop by 20%-30% and EBITDA
by as much as 65% compared with record 2008 levels that are
estimated to have exceeded US$2.6 billion.  Although S&P has
always factored cyclicality of the global mining industry into the
MMK rating, the current downturn exceeds historical precedents."

In the fourth quarter of 2008, MMK's capacity utilization levels
declined to about 40%-50% from 100% previously.  S&P expects high
fixed costs together with markedly lower prices for MMK's key
products to erode its profitability starting from the fourth
quarter of 2008 and well into 2009.  The situation is aggravated
by its high exposure to the domestic market, where liquidity
constraints and poor payment discipline leads to working capital
build-up.

Positively, S&P note the company's ability to negotiate
significantly lower prices for coking coal and iron ore as of
first-quarter 2009 as well as already implemented cost-cutting
initiatives, such as staff cuts, which should support
profitability this year.  S&P also expect Russian ruble
devaluation to be moderately positive for MMK's margins because
its export revenues are denominated in U.S. dollars, while more
than 60% of costs, such as gas, electricity, and labor are fixed
in rubles.

"The negative outlook reflects the possibility of a downgrade of
the long-term corporate credit rating on MMK if the industry
downturn is even more severe and prolonged than anticipated and
leads to a notable weakening of the company's credit metrics below
S&P's expectations for the rating category," said Mr. Nikolaev.
S&P expects adjusted debt to EBITDA of below 2.5x during the
market downturn.

S&P will also lower the rating if MMK is not proactive in managing
its liquidity and consumes its currently significant cash position
for investments, financial debt, and trade payables repayment,
without substantially improving its debt maturity schedule.


RASPADSKAYA OAO: Moody's Cuts Corporate Family Rating to 'Ba3'
-------------------------------------------------------------
Moody's Investors Services has downgraded the Ba3 corporate family
rating and Aa3.ru national scale rating of OAO Raspadskaya to B1
and A1.ru respectively.  At the same time, Moodys, downgraded the
rating for Loan Participation Notes due in 2012 and totaling
US$300 million from Ba3 to B1.  The outlook on all ratings remains
stable.

The rating action was prompted by a significant weakening in
demand for raw material including coking coal used in production
of crude steel.  Recent negative macroeconomic developments
resulted in much weaker demand for steel products with a
consecutive reduction in steel and raw material prices.  The
strong reduction of coal prices is expected to lead to a decreased
profitability and cash flow generation for 2009 and possibly for
2010.

Due to low payment discipline exercised by main customers, total
debt is likely to increase in order to support working capital
needs.  In addition, the lower than expected cash flow generation
is expected to lead to an increased leverage in 2009 beyond the
trigger for downgrade of 2 to 2.5 times gross debt to EBITDA that
the agency has set for the rating category.  In Moody's opinion
this situation is unlikely to be reversed in the next 12 months
The outlook for the coal market is highly challenging for non-
integrated coal producers like Raspadskaya.  The company has a
limited export potential (73% is sold domestically in 1H 2008) and
a high degree of concentration on a limited number of main
customers, including MMK, NLMK and Evraz Currently, the company is
aiming to improve diversification of its customers' base and is
actively seeking new export opportunities.  It is expected that
the company will be further negatively affected by the RUR
devaluation as the output is priced in roubles while debt is
denominated in USD.

On the positive side, the company has highly efficient production
assets which would allow the company to compete by significantly
reducing prices while retaining sufficient profitability and cash
flow generation.

The stable outlook reflects the current adequate liquidity
position supported by available cash and projected cash flow
generation (including projected cash inflow from the release of
working capital that should come with better payment discipline
from its customers) as well as the relatively lower amount of debt
service in 2009.

The last rating action was on May 10, 2007 Moody's Investors
Service assigned a (P)Ba3 senior unsecured rating with a stable
outlook to the loan participation notes issued by Raspadskaya
Securities Ltd., and on-lent to the operating company Raspadskaya
OAO.  At the same time, Moody's Interfax Rating Agency, which is
majority owned by Moody's, assigned a Aa3.ru national scale credit
rating with a stable outlook to the company.

Raspadskaya is Russia's second largest coking coal producer and is
among the top 10 coking coal producers globally with a coal
production volume of 13.55 mln t in 2007 and 9.41 mln t in 2008.
The company's production assets consist of two underground mines,
one open-pit, a coal preparation plant, and one more mine is
currently under construction, as well as a coal transportation
network and a number of integrated infrastructure companies.  All
the assets are located in Kuzbass Basin (Kemerovo region, Russia).

The company is controlled by management and the Evraz Group (rated
Ba3, stable outlook) through equal stakes in Corber Enterprises
Ltd. which holds an 80% stake in Raspadskaya.  In 2007 the company
reported revenue of US$784 million and US$491 of EBITDA based on
audited consolidated financial statements.  In 1H 2008 the company
reported revenue of US$607 and US$434 mln of EBITDA.


ROS-DON-CHER-MET LLC: Creditors Must File Claims by March 6
-----------------------------------------------------------
Creditors of LLC Ros-Don-Cher-Met (TIN 6167076417, PSRN
1046167004179) (Ferrous Metals) have until March 6, 2009, to
submit proofs of claims to:

         P. Naumenko
         Insolvency Manager
         K. Marksa St. 104
         305014 Kursk
         Russia

The Arbitration Court of Kurskaya commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A35–8512/08-S7.

The Debtor can be reached at:

         LLC Ros-Don-Cher-Met
         Engelsa St. 103
         305007 Kursk
         Russia


SHUGUROVSKIY OIL: Creditors Must File Claims by April 6
-------------------------------------------------------
Creditors of CJSC Shugurovskiy Oil Refinery (TIN 1649011649) have
until April 6, 2009, to submit proofs of claims to:

         T. Bikmukhametov
         Insolvency Manager
         Post User Box 2030
         420061 Kazan
         Tatarstan
         Russia
         Tel: 8(843) 278–42–17.

The Arbitration Court of Tatarstan commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A65–12312/2008-SG4–40.

The Debtor can be reached at:

         CJSC Shugurovskiy Oil Refinery
         Leninogorsk
         Tatarstan
         Russia


TETKINSKIY SUGAR: Creditors Must File Claims by March 6
-------------------------------------------------------
Creditors of CJSC Tetkinskiy Sugar Beet Plant (TIN 4603004073,
RVC 460301001, PSRN 1024600742913) have until March 6, 2009, to
submit proofs of claims to:

         N. Silakov
         Temporary Insolvency Manager
         Apt. 1
         Sadovaya St. 25/69
         305004 Kursk
         Russia

The Arbitration Court of Kurskaya will convene at 10:20 a.m. on
May 27, 2009, to hear bankruptcy supervision procedure.  The case
is docketed under Case No. A 35–9313/2008-S19.

The Debtor can be reached at:

         CJSC Tetkinskiy Sugar Beet Plant
         Tetkino
         Glushovskiy
         Kurskaya
         Russia


TUMEN-GAZ-MATERIALY CJSC: Creditors Must File Claims by March 6
---------------------------------------------------------------
Creditors of CJSC Tumen-Gaz-Materialy (Constructions Materials
From Burnt Clay Production) have until March 6, 2009, to submit
proofs of claims to:

         V. Bekoyev
         Temporary Insolvency Manager
         Moskovskiy trakt 143-135
         Tumen
         Russia

The Arbitration Court of Tumen will convene at 9:15 a.m. on
May 12, 2009, to hear bankruptcy supervision procedure.  The case
is docketed under Case No. A-70–7503/3–08.


UL'KANSKIY LES: Creditors Must File Claims by April 6
-----------------------------------------------------
Creditors of OJSC Ul'kanskiy Les (TIN 3617000599, PSRN
1023600989774, RVC 381801001) (Forestry) have until April 6, 2009,
to submit proofs of claims to:

         Yu. Safonov
         Insolvency Manager
         Third Floor
         Entrance 3
         Building 1
         Luchnikov Pereulok 4
         101000 Moscow
         Russia

The Arbitration Court of Irkutskaya will convene at 10:00 a.m. on
June 11, 2009, to hear bankruptcy proceedings.  The case is
docketed under Case No. A19–9430/08–63.

The Debtor can be reached at:

         OJSC Ul'kanskiy Les
         Office 4
         Bamovskiy pereulok 6
         Ul'kan
         Kazachinsko-Lenskiy
         666535 Irkutskaya
         Russia


=========
S P A I N
=========


BBVA-6 FTPYME: S&P Downgrades Rating on Class C Notes to 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class B notes issued by BBVA-5 FTPYME, Fondo de Titulizacion de
Activos and BBVA-6 FTPYME, Fondo de Titulizacion de Activos.  At
the same time S&P lowered and removed from CreditWatch negative
the ratings on BBVA-6 FTPYME's class C notes.  S&P has affirmed
all other classes in these deals.

S&P initially placed BBVA-6 FTPYME's class C notes on CreditWatch
negative on Oct. 22, 2008, following an initial analysis of the
deal's performance.  At that time, the collateral performance had
highlighted factors that had increased the possibility of negative
rating actions for certain junior classes.

The rating actions follow a full credit and cash flow analysis of
the most recent transaction information and loan-level data that
S&P has received for these Spanish small and midsize enterprise
asset-backed securities deals, originated by Banco Bilbao Vizcaja
Argentaira, S.A.

The rating actions are mainly driven by continued and expected
further deterioration of the collateral performance.  S&P's
analysis focused on several risks embedded in the pools backing
these transactions.  S&P's concerns relate to specific features,
such as geographical concentration, exposure to the real estate
and construction sectors, and risks posed by loans with bullet
maturities.

The collateral backing BBVA-5 FTPYME shows the highest
geographical concentration in the Valencia region—loans originated
in this area represent 16.82% of the outstanding collateral.  In
BBVA-6 FTPYME, 22.08% of the loans are concentrated in Catalonia
and 15.92% in Valencia.  The assets backing the transactions also
show concentration in the real estate and construction industry,
with 32.02% for BBVA-5 FTPYME and 36.54% for BBVA-6 FTPYME.

                           BBVA-5 FTPYME

The transaction benefits from increased credit enhancement due to
the pool's amortization.  In addition, the cash reserve is
currently not amortizing because of the high delinquency level and
is at its required level of EUR29.45 million.  However, in S&P's
opinion, the credit support provided by the cash reserve may not
be high enough to overcome a rapid rollover of delinquent loans
into defaulted loans.

Over the past six months 90+ day delinquent loans more than
doubled to 3.48% or EUR33 million according to the December 2008
investor report, up from 0.77% or EUR8.55 million as of June 2008.
Gross cumulative defaults still remain low and represent 0.21% of
the original outstanding balance.  S&P's credit and cash flow
analysis showed that the class B notes cannot maintain their
original rating, leading to the downgrade.  The class C notes
benefit from an unconditional guarantee provided by the European
Investment Fund so S&P has affirmed them at 'AAA'.

                          BBVA-6 FTPYME

As of the end of December 2008, 90+ day delinquencies increased to
2.71% of the outstanding portfolio from 1.10% in June 2008.
Although gross cumulative defaults are still fairly low, at 0.24%
of the original balance, the issuer drew on the cash reserve at
the last payment date in December 2008.  The cash reserve is now
at EUR20.513 million, slightly below its required level of
EUR21.300 million.

A rapid rise in defaults due to a rollover of delinquent loans
into a higher bucket of arrears may increase the likelihood of a
breach of the deferral of interest trigger.  The breach would
occur when gross cumulative defaults reach 5.0% of the initial
collateral balance for class C and 6.5% for class B.  A breach of
this trigger could potentially result in the junior and mezzanine
notes experiencing an interest shortfall, while the 'AAA' rated
class A notes will be repaid faster.

S&P's credit and cash flow analysis showed that the class B and C
notes can no longer maintain their current ratings, leading to the
downgrades.

                           Ratings List

                         Ratings Lowered

          BBVA-5 FTPYME Fondo de Titulizacion de Activos
                EUR1.9 Billion Floating-Rate Notes

                                      Rating
                                      ------
            Class               To               From
            -----               --               ----
            B                   A-               AA-

          BBVA-6 FTPYME Fondo de Titulizacion de Activos
                EUR1.5 Billion Floating-Rate Notes
                                      Rating
                                      ------
            Class               To               From
            -----               --               ----
            B                   BBB              A-

       Rating Lowered And Removed From Creditwatch Negative

          BBVA-6 FTPYME Fondo de Titulizacion de Activos
                EUR1.5 Billion Floating-Rate Notes
                                      Rating
                                      ------
            Class               To               From
            -----               --               ----
            C                   B                BBB-/Watch Neg

                         Ratings Affirmed

          BBVA-5 FTPYME Fondo de Titulizacion de Activos
                EUR1.9 Billion Floating-Rate Notes

                    Class               Rating
                    -----               ------
                    A1                  AAA
                    A2                  AAA
                    A3(G)               AAA
                    C                   AAA

          BBVA-6 FTPYME Fondo de Titulizacion de Activos
                EUR1.5 Billion Floating-Rate Notes

                    Class               Rating
                    -----               ------
                    A1                  AAA
                    A2(G)               AAA


=====================
S W I T Z E R L A N D
=====================


91NORD LLC: Creditors Must File Proofs of Claim by March 13
-----------------------------------------------------------
Creditors owed money by LLC 91NORD are requested to file their
proofs of claim by March 13, 2009, to:

         Reiterstrasse 9
         4054 Basel
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 3, 2008.


GLOBAL SECRET: Deadline to File Proofs of Claim Set February 28
---------------------------------------------------------------
Creditors owed money by LLC Global Secret are requested to file
their proofs of claim by Feb. 28, 2009, to:

         Olga Dietrich
         Schaffhauserstrasse 299
         8050 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 25, 2008.


GRAFFITICS LLC: Creditors Have Until March 17 to File Claims
------------------------------------------------------------
Creditors owed money by LLC Graffitics are requested to file their
proofs of claim by March 17, 2009, to:

         C. Carbone
         Liquidator
         Holderbachweg 46
         8046 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on May 15, 2006.


HOLAD HOLDING: Proof of Claim Filing Deadline Set March 13
----------------------------------------------------------
Creditors owed money by JSC Holad Holding & Administration are
requested to file their proofs of claim by March 13, 2009, to:

         Dr. Thomas Staehelin and
         Dr. Christophe Sarasin
         Liquidators
         Mail Box 2879
         4002 Basel
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 18, 2008.


KONIGSDORFER VERWALTUNG: Claims Filing Period Ends February 28
--------------------------------------------------------------
Creditors owed money by JSC Konigsdorfer Verwaltung are requested
to file their proofs of claim by Feb. 28, 2009, to:

         Trust Company Romag Immobilien Treuhand
         Mail Box 463
         9450 Altstatten
         Switzerland

The company is currently undergoing liquidation in Walzenhausen
AR.  The decision about liquidation was accepted at an
extraordinary shareholders' meeting held on Dec. 16, 2008.


MISEV LLC: February 28 Set as Deadline to File Claims
-----------------------------------------------------
Creditors owed money by LLC Misev are requested to file their
proofs of claim by Feb. 28, 2009, to:

         Rainweg 7
         4226 Breitenbach
         Switzerland

The company is currently undergoing liquidation in Breitenbach.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 16, 2008.


SCHUDEL PARTNER: Creditors Must File Proofs of Claim by March 5
---------------------------------------------------------------
Creditors owed money by LLC Schudel Partner Engineering are
requested to file their proofs of claim by March 5, 2009, to:

         Markus Schudel
         Toesstalstrasse 23
         8483 Kollbrunn
         Switzerland

The company is currently undergoing liquidation in Winterthur.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 22, 2008.


SCHREINEREI BAUMGARTNER: Feb. 26 Set as Deadline to File Claims
---------------------------------------------------------------
Creditors owed money by JSC Schreinerei Baumgartner are requested
to file their proofs of claim by Feb. 26, 2009, to:

         JSC Schreinerei Baumgartner
         Tannenstrasse 97
         8424 Embrach
         Switzerland

The company is currently undergoing liquidation in Embrach.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Dec. 15, 2008.


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


AUTOMISSION LLC: Creditors Must File Claims by February 28
----------------------------------------------------------
Creditors of LLC Automission (EDRPOU 33907271) have until
Feb. 28 2009, to submit proofs of claim to:

         A. Zibin
         Insolvency Manager
         Post Office Box 2779
         49044 Dnepropetrovsk
         Ukraine

The Economic Court of Dnepropetrovsk commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No B15/244/08.

The Court is located at:

         The Economic Court of Dnepropetrovsk
         Kujbishev St. 1a
         49600 Dnepropetrovsk
         Ukraine

The Debtor can be reached at:

         LLC AUTOMISSION
         Heroes of Stalingrad St. 122
         49033 Dnepropetrovsk
         Ukraine


DRUZHBA AGRICULTURAL: Court Starts Bankruptcy Procedure
-------------------------------------------------------
The Economic Court of Hmelnitsky commenced bankruptcy supervision
procedure on Agricultural LLC Druzhba (EDRPOU 03786308).

The Temporary Insolvency Manager is:

         Arbitral Manager R. Bodiak
         Shevchenko St. 60/127
         Gorodok
         Hmelnitsky
         Ukraine

The Court is located at:

         The Economic Court of Hmelnitsky
         Independency square 1
         29000 Hmelnitsky
         Ukraine

The Debtor can be reached at:

         Agricultural LLC Druzhba
         Nesterovtsy
         Dunayevetsky district
         32424 Hmelnitsky
         Ukraine


DRUZHBA AGRICULTURAL: Creditors Must File Claims by Feb. 28
-----------------------------------------------------------
Creditors of AGRICULTURAL LLC DRUZHBA (EDRPOU 03772341) have until
Feb. 28 2009, to submit proofs of claim to:

         Arbitral Manager O. Tereschenko
         Insolvency Manager
         Office 1
         Frunze St. 113b
         36002 Poltava
         Ukraine

The Economic Court of Poltava commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No 18/234.

The Court is located at:

         The Economic Court of Poltava
         Zigin St. 1
         36000 Poltava
         Ukraine

The Debtor can be reached at:

         Agricultural Llc Druzhba
         Bilenchevkovka
         Gadiatsky district
         37306 Poltava
         Ukraine


KASKO CJSC: Creditors Must File Claims by February 28
-----------------------------------------------------
Creditors of CJSC Insurance Company Kasko (EDRPOU 25642834) have
until Feb. 28 2009, to submit proofs of claim to:

         State Enterprise S+R Ukraine
         Insolvency Manager
         Post Office Box 72
         03115 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No 15/95-?.

The Court is located at:

         The Economic Court of Kiev
         B. Hmelnitskiy street 44-b
         01030 Kiev
         Ukraine

The Debtor can be reached at:

         CJSC Insurance Company Kasko
         Solomenskaya square 2
         03035 Kiev
         Ukraine


LOPAS LLC: Creditors Must File Claims by Feb. 28
------------------------------------------------
Creditors of LLC Lopas (EDRPOU 35689869) have until Feb. 28 2009,
to submit proofs of claim to:

         LLC Tshekay
         Insolvency Manager
         Mazepa St. 26
         01010 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No 44/13-?.

The Court is located at:

         The Economic Court of Kiev
         B. Hmelnitskiy street 44-b
         01030, Kiev
         Ukraine

The Debtor can be reached at:

         LLC Lopas
         Degtiarevskaya St. 14
         04050 Kiev
         Ukraine


NADRA BANK: S&P Junks Counterparty Credit Rating From 'B-'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term counterparty credit rating on Ukraine-based Nadra Bank
to 'CC' from 'B-' and placed it on CreditWatch with negative
implications.

"The rating actions reflect the introduction of temporary
administration at the bank for one year and a moratorium on credit
obligations for six months to stabilize the bank's financial
condition," said Standard & Poor's credit analyst Annette Ess.

Nadra's liquidity has been placed under severe pressure by the
currently tough market conditions prevailing in Ukraine, as well
as prolonged political criticism of the bank.

Nadra experienced an outflow of UAH6.4 billion in customer
deposits, in addition to a UAH3.2 billion foreign debt repayment
in 2008 that was largely financed by UAH7.1 billion in refinancing
facilities provided by the National Bank of Ukraine in October and
November 2008.  Despite receiving these refinancing facilities,
Nadra has continued to see an outflow of funds, hence the
government's action to help stabilize it.

"We are concerned about the impact of the country's deteriorating
economic situation, the associated exchange rate depreciation, and
the effect of high inflation on the bank's asset quality, funding,
and liquidity," said Ms. Ess.

Nadra's asset quality is deteriorating rapidly, as reflected by an
increase in its ratio of nonperforming loans (90 days overdue) to
14% on Dec. 1, 2008, from 5.2% at year-end 2007, with the largest
increases seen in the bank's retail portfolio, especially mortgage
and auto loans.  Nevertheless, reported nonperforming loans do not
fully reflect the underlying risk of a young credit portfolio
untested through a full economic cycle.  S&P expects further asset
quality deterioration in 2009, given poor macroeconomic
prospects.  This could be triggered by Nadra's foreign currency
portfolio, which currently represents 60% of total loans.  As many
consumers and small and midsize enterprises have no natural hedge,
the recent sharp depreciation of the Ukrainian hryvnia and rising
unemployment impair the repayment ability of many borrowers.

With total assets of UAH31.5 billion (US$4.6 billion) under
domestic accounting standards on Dec. 1, 2008, Nadra ranked among
the 10 leading banks in Ukraine, with a market share of 4% by
total assets.

The ratings reflect the bank's stand-alone credit quality and do
not include any uplift for extraordinary external support--either
from the prospective new owner or the government--owing to the
uncertainty of this support.

S&P expects to resolve the CreditWatch placement within the next
few days on obtaining clarification from National Bank of Ukraine
and Nadra of the terms and conditions of the temporary
administration and moratorium.  The ratings could be revised to
'SD' (selective default) if S&P obtain confirmation that the
moratorium will trigger delay in debt repayment.  S&P will
continue to closely monitor the situation at the bank, with a
particular focus on liquidity.


NORMA LLC: Creditors Must File Claims by February 28
----------------------------------------------------
Creditors of LLC Joint Enterprise Norma (EDRPOU 24203989) have
until Feb. 28 2009, to submit proofs of claim to:

         Arbitral Manager R. Rachok
         Insolvency Manager
         Oboronnaya St. 24
         91033 Lugansk
         Ukraine

The Economic Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 22/13?.

The Court is located at:

         The Economic Court of Lugansk
         Great Patriotic War square 3a
         91000 Lugansk
         Ukraine

The Debtor can be reached at:

         LLC Joint Enterprise Norma
         Vatutin St. 87A
         91040 Lugansk
         Ukraine


SODRUZHESTVO LLC: Creditors Must File Claims by Feb. 28
-------------------------------------------------------
Creditors of LLC Sodruzhestvo (EDRPOU 32614774) have until
Feb. 28 2009, to submit proofs of claim to:

         O. Zolotavin
         Insolvency Manager

The Economic Court of AR Krym commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 2-12/10546-2008.

The Court is located at:

         The Economic Court of AR Krym
         Office 155
         Pobeda Avenue 76
         Simferopol
         95000 AR Krym
         Ukraine

The Debtor can be reached at:

         LLC Sodruzhestvo
         Krym St. 36
         Zorkino
         Nizhnegorsky district
         AR Krym         
         Ukraine


UKRSOTSBANK OJSC: S&P Places 'B' Rating on Negative CreditWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has placed its 'B'
long- and short-term counterparty credit ratings on Ukraine-based
Ukrsotsbank OJSC, Alfa-Bank Ukraine, and JSC KREDOBANK, and its
'uaBBB' Ukraine national scale ratings on the latter two banks on
CreditWatch with negative implications.  In addition, Standard &
Poor's revised its outlook on UNEX BANK to negative from stable;
the 'CCC+' long-term and 'C' short-term counterparty credit
ratings and the 'uaB+' Ukraine national scale rating on the bank
were affirmed.

The rating actions reflect S&P's view of the rapidly deteriorating
economic and operating environment in Ukraine, which is affecting
the credit fundamentals of domestic banks.  The severe problems in
the economy, exacerbated by a sharp deterioration in Ukraine's
terms of trade, are, in S&P's opinion, increasing pressure on
banks' balance sheets.  S&P believes that these factors are having
a pronounced negative effect, weakening the banks' asset quality,
tightening their liquidity, and reducing their profitability.

Unsurprisingly in S&P's opinion, the Ukrainian public's confidence
in the country's banks appears to be evaporating quickly, as
reflected in a continued deposit outflow.  The introduction on
Feb. 10, 2009, of temporary administration proceedings with
respect to Nadra Bank (CC/Watch Neg/--), one of Ukraine's top six
banks, highlights increasing dislocations in the Ukrainian system.
S&P believes that such proceedings could, themselves, prompt more
deposit outflows from other banks.

S&P understands that the National Bank of Ukraine, Ukraine's
central bank, is taking various steps to cope with the crisis, but
its means may be limited, and it may be constrained by commitments
under the International Monetary Fund's lending program.  The
difficult macro environment, institutional weaknesses in Ukraine,
and wavering political commitment to the terms of the IMF program
in S&P's view make the outcome of anticrisis measures
unpredictable.  Various regulatory actions taken in previous
months, like the ban on early term deposit withdrawal and the cap
on asset growth, have done little, in S&P's opinion, to stabilize
the banking system.  The NBU's task appears to have been made more
difficult by its mandate to prevent the hryvna's depreciation
while at the same time being tasked to maintain liquidity in the
banking sector.  The NBU has tightened banks' refinancing rules,
which, in S&P's view, is pressuring the banking sector's
liquidity.  It is also pushing bank shareholders to increase
capital, but only a dozen banks out of more than 100 in the system
have responded positively to this capital call.  The capacity of
most existing shareholders to inject new capital appears very
unclear and could open the door for wide-scale changes in
ownership and consolidation.  A recent example is the bailout of
Prominvestbank (not rated) by Russian state-owned Vnesheconombank.

Problem and bad loans appear to be growing rapidly, both on the
corporate and retail front.  For the banking system, S&P estimate
that loans under stress (including restructured loans) are rapidly
heading above 20% of total loans.  As S&P's worst case scenario
for Ukraine, S&P estimate that gross problematic assets could peak
at 35%-50% of total assets.  S&P see asset quality deterioration
relating to the wider economic shock that Ukraine is experiencing
as a commodity exporter, corporates' almost complete lack of
access to refinancing, and foreign-currency loans' high share
(more than 50%) of total system loans.  With the hryvna down more
than 60% since its peak in the first half of 2008, S&P understands
that households and companies are struggling to repay their
foreign-currency denominated loans.  S&P expects difficult access
to deposits and debt markets to continue to pressure banks'
funding profiles, especially those with sizable amounts of debt
maturing in 2009.

S&P aims to resolve the CreditWatch status on Ukrsotsbank, Alfa-
Bank, and KREDOBANK within the next few weeks, once S&P has more
information on the severity of the crisis and its impact on the
banks.  At this stage, depending on the support that the
individual banks receive from either their owners or the Ukrainian
government, S&P could either affirm the ratings or lower them by
more than one notch, depending on what S&P see as the degree of
the banks' credit deterioration.  S&P also plan to analyze the
extent of foreign shareholder support in the current
circumstances.  Such support could, in S&P's view, mitigate the
pressure on the banks' stand-alone credit profiles.  However the
banks' ability to honor their obligations on time and in
accordance with their terms could, in S&P's view, be constrained
by government intervention in the form of deposit and debt
freezes.  Under current conditions, S&P does not foresee the
ratings on these banks being higher than the sovereign foreign
currency ratings on Ukraine; therefore, any future downgrade of
Ukraine could negatively affect the ratings on the three banks.

The negative outlook on UNEX reflects S&P's view of the growing
market pressure on the bank's asset quality, financial
performance, and liquidity.  Although the current ratings already
incorporate the probability of some weakening in the bank's
financial and commercial profile, S&P could lower the ratings if
this deterioration is higher than S&P expect.

                           Ratings List

                    CreditWatch/Outlook Action

                         Ukrsotsbank OJSC

                                   To                 From
                                   --                 ----
Counterparty Credit Rating         B/Watch Neg/B      B/Negative/B
Certificates Of Deposit           B/Watch Neg/B      B/B
Senior Unsecured                  B/Watch Neg        B

                        Alfa-Bank Ukraine

                                   To                 From
                                   --                 ----
Counterparty Credit Rating        B/Watch Neg/B      B/Negative/B
National Scale Rating             uaBBB/Watch Neg/-- uaBBB/--/--
Certificates Of Deposit           B/Watch Neg/B      B/B
Senior Unsecured                  B/Watch Neg        B

                      Ukraine Issuance PLC

                                       To                 From
                                       --                 ----
     Senior Unsecured                  B/Watch Neg        B

                           JSC KREDOBANK

                                   To                 From
                                   --                 ----
Counterparty Credit Rating        B/Watch Neg/B      B/Negative/B
National Scale Rating             uaBBB/Watch Neg/-- uaBBB/--/--
Certificates Of Deposit           B/Watch Neg/B      B/B
Senior Unsecured                  uaBBB/Watch Neg    uaBBB

          Ratings Affirmed; CreditWatch/Outlook Action

                            UNEX BANK

                                  To                 From
                                  --                 ----
Counterparty Credit Rating        CCC+/Negative/C    CCC+/Stable/C
National Scale Rating            uaB+/--/--
Certificates Of Deposit          CCC+/C


* Fitch Takes Rating Actions on Various Ukrainian Companies
-----------------------------------------------------------
Fitch Ratings has taken rating actions on these Ukrainian
corporates after downgrade of Ukraine to 'B' from 'B+'.  The
sovereign Outlook is Negative.

The affected Ukrainian companies are:

NJSC Naftogaz of Ukraine

  -- Long-term foreign and local currency Issuer Default Ratings:
     downgraded to 'B-' (B minus) from 'B'.  The company's LT IDRs
     are rated one notch below the sovereign due to implied
     government support.  The Outlook is Negative.

  -- FC senior unsecured rating downgraded to 'B'/'RR4' from
     'B+'/'RR4' to align with the sovereign rating due to a
     government guarantee.

DTEK Holding Limited (DTEK)

  -- LT FC IDR downgraded to 'B' from 'B+'.  The Outlook is
     Negative. This rating is constrained by Ukraine's Country
     Ceiling 'B'.

  -- LT LC IDR affirmed at 'B+'.  The Outlook was revised to
     Negative from Positive to reflect Fitch's concerns about the
     potential impact of the economic downturn on DTEK.

  -- ST FC IDR affirmed at 'B' and ST LC IDR assigned at 'B'.

National LT rating upgraded to 'AA+(ukr)' from 'AA-(AA minus)
(ukr)'.  This is due to a recalibration of Fitch's National
Ukrainian scale and thereby a relative improvement in DTEK's
credit profile compared to other Ukrainian issuers.  The Outlook
is Stable.

National senior unsecured rating upgraded to 'AA+(ukr)'/'RR4' from
'AA-(AA minus)(ukr)'/'RR4'.

Metinvest B.V. (Metinvest)

  -- LT FC IDR downgraded to 'B' from 'B+'.  The Outlook is
     Negative.  This rating is constrained by Ukraine's Country
     Ceiling 'B'.

  -- LT LC IDR affirmed at 'B+'.  The Outlook is Stable.

  -- ST FC and LC IDRs affirmed at 'B'.

National LT rating upgraded to 'AA+(ukr)' from 'A+(ukr)` with
Stable Outlook, due to a recalibration of Fitch's National
Ukrainian scale.

National ST rating upgraded to 'F1+(ukr)' from 'F1(ukr)' due to a
recalibration of Fitch's National Ukrainian scale.

Ukrainian companies whose ratings are not affected by the
sovereign downgrade are listed.  These companies are not
constrained by the Country Ceiling.  Company-specific factors and
concerns have been factored into their respective current ratings.

Corporation Industrial Union of Donbass

  -- LT FC IDR affirmed at 'B' with Negative Outlook
  -- ST FC IDR affirmed at 'B'

CJSC Donetsksteel Iron and Steel Works

  -- LT FC IDR 'B-' (B minus) remains on Rating Watch Negative
  -- LT LC IDR 'B-' (B minus) remains on RWN
  -- ST FC and LC IDRs 'B' remain on RWN

  * National LT rating 'BBB-(BBB minus)(ukr)' remains on RWN

  * National ST rating 'F3(ukr)' remains on RWN

  * National senior unsecured 'BBB-(BBB minus)(ukr)' remains on
    RWN

OJSC Concern Stirol

  -- LT FC IDR affirmed at 'B-' (B minus) with Stable Outlook
  -- ST FC IDR affirmed at 'B'

Interpipe Limited

  -- LT FC IDR 'CCC' remains on RWN
  -- ST FC IDR 'C' remains on RWN
  -- FC senior unsecured 'CCC' remains on RWN.


* Fitch Downgrades Issuer Default Ratings on Nine Ukrainian Banks
-----------------------------------------------------------------
Fitch Ratings has downgraded by one notch the Long-term Issuer
Default Ratings of nine Ukrainian banks: Forum, Pravex, ProCredit
Ukraine, Swedbank Ukraine, UkrSibbank, Ukrsotsbank, VTB Ukraine,
Oschadny and Ukreximbank.  The ratings remain on Negative Outlook.
The rating actions follow the downgrade of Ukraine's Long-term
foreign and local currency IDRs to 'B' from 'B+'.

The downgrades of the Long-term IDRs of Forum, Pravex, ProCredit
Ukraine, Swedbank Ukraine, UkrSibbank, Ukrsotsbank and VTB Ukraine
reflect the downgrade of Ukraine's Country Ceiling to 'B' from
'B+'.  The Country Ceiling captures transfer and convertibility
risks and limits the extent to which support from the shareholders
of these banks can be factored into the banks' Long-term foreign
currency IDRs.  The banks' Long-term local currency IDRs also
factor in Ukrainian country risks.  The Individual Ratings of
Pravex, ProCredit Ukraine, UkrSibbank, Ukrsotsbank and VTB Ukraine
will also be reviewed shortly.

Swedbank Ukraine is 99.99%-owned by Swedbank AB ('A+'/Negative);
Forum is majority (60%+one share)-owned by Germany's Commerzbank
AG ('A'/Stable); ProCredit Ukraine is 60%-owned by Germany's
ProCredit Holding AG ('BBB-' ((BBB minus))/Stable); VTB Ukraine is
more than 99%-owned by Russia's JSC Bank VTB ('BBB'/Negative);
UkrSib is 51%-owned by France's BNP Paribas ('AA'/Negative);
Ukrsots is almost 95%-owned by Italy-based UniCredit S.p.A. ('A+'/
Negative) through its Vienna subsidiary UniCredit Bank Austria AG
('A'/Negative), and Pravex is 100%-owned by Italy's Intesa
Sanpaolo S.p.A. ('AA-' ((AA minus))/Stable).  The IDRs of these
banks reflect the limited probability of support being forthcoming
from their majority shareholders, in case of need.

The downgrades of Oschadny and Ukreximbank reflect the reduced
ability of the government to provide support in case of need as
reflected in the downgrade of Ukraine's Long-term IDRs.
Oschadny's and Ukreximbank's IDRs reflect Fitch's view of the high
propensity of the Ukrainian authorities to provide support for
these banks in case of need, but the sovereign's ability to
provide support has weakened.  Both Oschadny and Ukreximbank are
100%-owned by the state (represented by the Cabinet of Ministers
of Ukraine).

The revision of Privatbank's Support Rating Floor to 'No Floor'
from 'B-' reflects the reduced ability of the government to
provide support to the bank in case of need.

The rating actions on Ukrainian banks are:

OJSC Swedbank (Swedbank Ukraine):

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

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

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

  -- Support Rating: affirmed at '4'

  -- Individual Rating: affirmed at 'E'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

Bank Forum (Forum):

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

  -- Senior unsecured debt: downgraded to 'B' from 'B+'; Recovery
     Rating affirmed at 'RR4'

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

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

  -- Support Rating: affirmed at '4'

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

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

ProCredit Bank (Ukraine) (ProCredit Ukraine):

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

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

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

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

  -- Support Rating: affirmed at '4'

  -- Individual Rating: affirmed at 'D'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

JSC VTB Bank (Ukraine) (VTB Ukraine):

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

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

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

  -- Support Rating: affirmed at '4'

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

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

JSCIB UkrSibbank (UkrSibbank):

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

  -- Senior unsecured debt: downgraded to 'B' from 'B+'; Recovery
     Rating affirmed at 'RR4'

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

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

  -- Support Rating: affirmed at '4'

  -- Individual Rating: affirmed at 'D'

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

Ukrsotsbank (Ukrsotsbank):

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

  -- Senior unsecured debt: downgraded to 'B' from 'B+'; Recovery
     Rating affirmed at 'RR4',

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

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

  -- Support Rating: affirmed at '4'

  -- Individual Rating: affirmed at 'D'

Pravex Bank (Pravex):

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

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

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

  -- Support Rating: affirmed at '4'

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

  -- National Long-term rating: affirmed at 'AAA(ukr)'; Outlook
     Stable

JSC State Savings Bank of Ukraine (Oschadbank) (Oschadny):

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

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

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

  -- Support Rating: affirmed at '4'

  -- Individual Rating: affirmed at 'E'

  -- Support Rating Floor revised to 'B' from 'B+'

  -- National Long-term rating: downgraded to 'AA-(ukr)' (AA
     minus) from 'AA(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

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

  -- Senior unsecured debt: downgraded to 'B' from 'B+'; Recovery
     Rating affirmed at 'RR4'

  -- Subordinated debt: downgraded to 'CCC' from 'B-' (B minus),
     Recovery Rating affirmed at 'RR6'

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

  -- Support Rating: affirmed at '4'

  -- Individual Rating: affirmed at 'D',

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

  -- National Long-term rating: downgraded to 'AA-(ukr)' (AA
     minus) from 'AA(ukr)'; Outlook Stable

CJSC Privatbank's (Privatbank):

  -- Long-term foreign currency IDR: affirmed at 'B'; Outlook
     Negative

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

  -- Support Rating: affirmed at '5'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating Floor: revised to 'No Floor' from 'B-' (B
     minus)


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


ADAMS CHILDRENSWEAR: Sold to JS Childrenswear; 1,900 Jobs Saved
----------------------------------------------------------------
The business and assets of Adams Childrenswear Limited have been
sold to JS Childrenswear Limited, a newly formed company backed by
John Shannon, administrators from PricewaterhouseCoopers said.
The sale preserves 1,900 jobs throughout the UK and Ireland in
over 120 retail outlets and means the Adams brand will continue on
the high street.

Since their appointment to Adams Childrenswear on December 31,
2008, the administrators from PricewaterhouseCoopers have been
trading the company as normal while seeking a buyer.

Rob Hunt, joint administrator and partner at
PricewaterhouseCoopers LLP said: "We are delighted to be able to
secure this business sale and provide some much needed stability
for customers, suppliers and employees alike in these uncertain
times.  The support of these stakeholders has been crucial over
the last month or so and I would like to thank them for their
support throughout this difficult period.

"The new company will continue to trade under the Adams name,
meaning this brand will not be one of the retail names
disappearing from the high street in the current recession.  The
sale was one of a number of expressions of interest and
represented the best deal for all stakeholders.  This transaction
also demonstrates that with the right business model, retailers
can be rescued from administration in the current economic
climate."

Operating from its base in Nuneaton, Adams is the largest
independent childrenswear retailer in the UK with an annual
turnover of GBP150 million.  It operates 271 own brand stores and
concessions throughout the UK trading under Adams Kids.
Additionally, the company supplies a number of overseas
franchises.

The group employs 3,200 people, of which 350 are based at its head
office in Nuneaton with the balance being employed throughout the
retail network both in the UK and Eire.

Like many retailers, it has experienced a difficult trading
environment over the course of the last 12 months which has been
exacerbated by a further downturn and general tightening of the
credit markets in the last quarter of 2008.


BLP GROUP: Appoints Joint Administrators from PwC
-------------------------------------------------
Lyn Vardy and Ian David Green of PricewaterhouseCoopers LLP were
appointed joint administrators of BLP Group Ltd. on Jan. 29, 2009.

The company can be reached at:

         BLP House
         Sandallstones Road
         Kirk Sandall Industrial Estate
         Doncaster
         South Yorkshire
         DN3 1QR
         England


CAIRN EURO: Fitch Junks Ratings on EUR$17.3-Mil. Notes
------------------------------------------------------
Fitch Ratings has affirmed one and downgraded six classes of Cairn
Euro ABS CDO I PLC notes, removed the seven notes from Rating
Watch Negative, and assigned Rating Outlooks as detailed below.

  -- EUR4.29 million Class X senior floating-rate notes affirmed
     at 'AAA'; off RWN; Stable Outlook

  -- EUR262.5 million Class A1S floating-rate notes downgraded to
     'BBB' from 'AAA'; off RWN; Stable Outlook

  -- EUR13.3 million Class A1J floating-rate notes downgraded to
     'BBB- (BBB minus)' from 'AAA'; off RWN; Stable Outlook

  -- EUR24.5 million Class A2 floating-rate notes downgraded to
     'BB' from 'AA'; off RWN; Stable Outlook

  -- EUR19.25 million Class A3 deferrable floating-rate notes
     downgraded to 'B' from 'A-' (A minus); off RWN; Stable
     Outlook

  -- EUR10.85 million Class B deferrable floating-rate notes
     downgraded to 'CCC' from 'BBB-' (BBB minus); off RWN;

  -- EUR6.475 million Class C deferrable floating-rate notes
     downgraded to 'CCC' from 'BB-' (BB minus); off RWN

The downgrades reflect Fitch's view on the credit risk of the
rated tranches following the release of the agency's revised
Structured Finance CDO rating criteria on December 16, 2008, as
well as credit deterioration to the collateral pool since the
transaction's close.

The application of the new SF CDO rating criteria incorporates
Fitch's view on industry and vintage concentration risks and the
propensity for low recoveries upon default, particularly for thin
tranches.  Although the application of the new criteria has
considerably impacted the transaction's ratings, credit
deterioration in the portfolio and the inclusion of a significant
amount of UK non-conforming residential mortgage-backed securities
has particularly affected the junior tranches.

As per the trustee report dated December 31, 2008, the portfolio
contained 76 performing assets from 63 obligors, with the largest
exposure accounting for approximately 2.09% of the outstanding
portfolio amount, and the three largest obligors accounting for
6.26% of the outstanding portfolio amount.  According to Fitch
classifications, the largest single industry is RMBS with 58% of
the portfolio volume, of which 20% fall into the non-conforming
category and 37% are classified as prime RMBS.  The non-conforming
RMBS originate from 2005 (making up 6% of the portfolio) and 2006
(14%).  The three largest country concentrations are the UK, Italy
and the Netherlands making up 34%, 19% and 14% of the portfolio
respectively.

In conducting its analysis, Fitch makes a three-notch downward
adjustment for any names on Rating Watch Negative for default
analysis in its Portfolio Credit Model.  On an adjusted basis
approximately 19% of the assets are treated as sub-investment
grade.  The weighted average portfolio quality is 'BBB-' (BBB
minus) and 7% of the portfolio is on RWN.  Four assets rated 'B'
and below on an unadjusted basis represent 7% of the portfolio.
All four assets are UK non-conforming RMBS transactions and have
seen increasing arrears and rising loss levels in addition to
mismatches between the interest rates paid on the assets and the
liabilities.  The lowest rated of these assets has a 'CCC'/'DR4'
rating assigned to it indicating moderate recovery prospects . The
other three assets are rated 'B' with a Negative Outlook.

Given the current macroeconomic climate, Fitch expects further
negative portfolio migration which could result in a higher
percentage of assets that are subject to cuts in the over-
collateralization ratio calculation.  This in turn could result in
the junior notes failing the OC test.  In this case interest will
be diverted away from the junior notes to amortize the senior
notes.  The Class B and Class C notes have both been downgraded to
'CCC' as these classes are most vulnerable to future rating
migration.  The Class C notes, representing only 1.9% of the
capital structure, do not provide significant protection to Class
B to justify a rating above the 'CCC' category for the latter.

Class X was issued to cover upfront management costs and amortizes
according to a pre-set schedule until 2015.  Class X ranks senior
to Class A in the priority of payments and non-payment of any due
amounts constitutes an event of default to the transaction.  Fitch
deems this note to be able to withstand considerable rating stress
and has therefore affirmed the notes rating with a Stable Outlook.
The transaction is a managed securitization of structured finance
assets, primarily consisting of European mezzanine residential and
commercial mortgage-backed securities and CDOs.  The portfolio is
actively managed by Cairn Financial Products Limited.


CLINTON CARDS: In Refinancing Talks With Lenders Amid CVA Rumors
----------------------------------------------------------------
Jenny Davey at The Sunday Times reports that Clinton Cards plc has
entered into refinancing talks with its lenders amid rumors that
it could be forced to do a CVA, or company voluntary arrangement,
to protect itself from creditors.

However, Barry Hartog, group commercial director, dismissed the
speculations this weekend, insisting Clinton is a solid business,
the report states.

According to the report, the group's debt pile stood about GBP73
million.

The report notes the debts – held with Barclays and Royal Bank of
Scotland – comprise a GBP60 million working-capital facility and a
GBP12 million loan facility which is due to be repaid in December.

Clinton needed to renegotiate new loan facilities before its
financial year-end in July to guarantee its auditors could sign
off the company's final accounts, the report discloses citing
analysts.

The report states that while sources close to the company claim it
has "every expectation" of being able to renew the banking
facilities, the City and its landlords remain nervous.

The report relates shares in the group have lost over 80% of their
value in the past 12 months, closing down 7.7% on Friday, February
13, at 10-1/2 p, valuing the business at just GBP21 million.

Clinton Cards -– http://www.clintoncards.co.uk/about/–- is the
largest specialist retailer of greetings cards, plush merchandise
(soft toys) and related products in the UK with over 700 shops.
The company employs 9,000 people.


CORNHILL CONSERVATORIES: Smith & Williamsons Named Administrators
-----------------------------------------------------------------
Robert William Leslie Horton and Anthony Murphy of Smith &
Williamson Limited were appointed joint administrators of Cornhill
Conservatories Ltd. on Jan. 29, 2009.

The company can be reached through & Williamson Limited at:

         No. 1 Bishops Wharf
         Walnut Tree Close
         Guildford
         Surrey
         GU1 4RA


DILLONS GARDEN: Taps Joint Administrators from PwC
--------------------------------------------------
David James Bennett and Robert William Birchall of
PricewaterhouseCoopers LLP were appointed joint administrators of
Dillons Garden Sheds Ltd. on Jan. 30, 2009.

The company can be reached at:

         Dillons Garden Sheds Ltd.
         Old Redbridge Road
         Southampton
         SO15 0AN
         England


FREEMAN AND PROCTOR: Appoints Joint Administrators from PwC
-----------------------------------------------------------
Stuart David Maddison and David Matthew Hammond of
PricewaterhouseCoopers LLP were appointed joint administrators of
Freeman And Proctor Ltd. on Jan. 29, 2009.

The company can be reached at:

         Freeman and Proctor Ltd.
         3-5 Centrovell Industrial Estate
         Caldwell Road
         Nuneaton
         Warwickshire
         CV11 4NG
         England


GROSVENOR SHOPPING: In Talks w/ Lenders Amid Debt Breach Concerns
-----------------------------------------------------------------
The Duke of Westminter's Grosvenor Shopping Centre Fund is in
talks with its lenders on the terms of a renewal of their bank
facilities amid concerns of a covenant breach, Amanda Andrews at
The Daily Telegraph reports.

The report relates Grosvenor confirmed Friday last week that part
of its business had been hit by declining property values and an
increasingly difficult retail market.

"We report quarterly to investors and at the end of the second
quarter of 2007 we reported that we were concerned at the level of
debt and we needed to address it," the report quoted, Mervyn
Howard, the head of Grosvenor's UK fund management, as saying.

Grosvenor, the report discloses, has 20 funds in total and GBP3.1
billion of property under management.  It owns shopping centers
including the Dolphin Centre in Poole, Freshney Place in Grimsby,
Cooper's Square in Burton-upon-Trent and Eastgate Shopping Centre
in Inverness, the report notes.


HELPCARE LTD: Enters Administration; Buyer Sought for Care Homes
----------------------------------------------------------------
The administrator for three Yorkshire care homes, Vantis Business
Recovery Services (BRS), a division of Vantis, the UK accounting,
tax and business advisory group, is seeking a buyer for all
businesses, after owners, Helpcare Ltd and Carestream Ltd, entered
into administration in November last year.

Haven Lodge in Normanton, Stockingate in Pontefract and Victoria
House in Ryhill continue to trade as before.  Chris Stevens,
Client Partner at Vantis BRS and appointed administrator with
extensive residential care home advisory experience, said: "Care
for residents remains at the highest standard.  We are in
discussions with a number of interested parties and we are
confident that we will be able to achieve a sale."


HUGHMARK INTERNATIONAL: Enters Administration; Ceases Trading
-------------------------------------------------------------
Alex Hayes at Bucks Free Press reports that Hughmark
International, the company which operates High Wycombe's market
since December 2007, has gone into administration.

The company, the report relates, has ceased trading.

According to the report, the Wycombe District Council has granted
a temporary license to run the market to its sister company,
Hughmark Continental.


JJB SPORTS: Lenders Extend Standstill Arrangements to March 16
--------------------------------------------------------------
JJB Sports PLC's lenders have agreed to extend the standstill
arrangements to March 16, 2009, subject to the lenders remaining
satisfied with the progress of the company's proposed disposal of
its Fitness Clubs business.

In connection with this extension JJB has agreed to pay the
lenders a fee of GBP166,500 that will be offset against previously
agreed fees.  The balance of the fees, approximately GBP8 million,
is scheduled to be paid in March and April 2009.

Management Today discloses JJB owes GBP60 million to HBOS,
Barclays and Kaupthing.

According to Management Today, JJB is still in no position to pay
up.

Management Today notes there was certainly no chance of pushing a
sale of the company's Fitness Clubs business through this week,
except perhaps at a fire-sale price.

                        About JJB Sports

Headquartered in Wigan, England, JJB Sports plc --
http://www.jjbcorporate.co.uk/-- is engaged in the retailing of
sportswear and sporting equipment.  The company also operates a
chain of fitness clubs, which has a smaller number of indoor
soccer centers attached to them.  It also operates a television
broadcasting and marketing business, which specializes in the
marketing of golf products and fitness equipment through Sky
Television.

On Oct. 2, 2008, the TCR-Europe reported that Deloitte & Touche
LLP raised going concern issues about JJB Sport plc's interim
report and condensed financial statements for the 26 weeks to
July 27, 2008.

Deloitte pointed to material uncertainties that may cast
significant doubt on the group's ability to continue as a going
concern.  These material uncertainties comprise:

    * ongoing availability of the original facilities given the
      actual and projected covenant breaches;

    * the ability to repay the bridging facility from asset
      sales or seasonal cash flows;

    * achieving the sale of non-core businesses and/or assets
      within the timescales and at the values projected; and

    * the achievability of forecasts and key assumptions within
      the forecasts.

Deloitte warned there is a risk that the material uncertainties as
to the group's ability to continue as a going concern may not be
resolved satisfactorily.


METAL PRESSINGS: PKF Named Joint Administrators
-----------------------------------------------
Ian J. Gould and Edward T. Kerr of PKF (UK) LLP were appointed
joint administrators of Metal Pressings Group Ltd. on Jan. 28,
2009.

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

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


MIDAS CAPITAL: Gets Covenant Waiver Until April 30
--------------------------------------------------
Midas Capital Plc has reached agreement with its bank for a waiver
of its loan covenants until April 30, 2009 with a view to
restructuring its borrowing arrangements.

The bank has confirmed that Midas continues to enjoy its full
support.

Midas said discussions continue with interested parties over
strategic options to strengthen the balance sheet and a further
announcement will be made when appropriate.

As reported in the TCR-Europe on Jan. 23, 2009, Midas disclosed
that at the year end its net debt stood at GBP29.8 million.

Citing Reuters, the report recalled at 1440 GMT on Jan. 21, 2009,
shares in the group fell 60 percent at 14.7 pence.

Midas Capital plc -- http://www.iimia.co.uk/-- is the ultimate
parent company.  MDS plc has three divisions involved in Fund
Management, Wealth Management and Corporate Finance and Broking.
MDS plc is headquartered in Exeter, with offices in Liverpool,
Bournemouth, Falmouth, Guernsey, Plymouth, Northampton, Reading
and Capetown.  Intelli Corporate Finance Ltd has offices in London
and Edinburgh.


RIO TINTO: Unveils US$19.5 Billion Deal With Chinalco
-----------------------------------------------------
Rio Tinto disclosed that it would form a US$19.5 billion strategic
partnership with Aluminium Corporation of China ("Chinalco"), a
leading Chinese diversified resources company.

In a press statement, Rio Tinto said the transaction will forge a
pioneering strategic partnership through the creation of joint
ventures in aluminium, copper, and iron ore as well as the issue
of convertible bonds to Chinalco, which would, if converted, allow
Chinalco to increase its existing shareholding in Rio Tinto.

The transaction is intended to position Rio Tinto to lead the
resources industry into the next decade and beyond by ensuring the
continuity of its strategy with the benefit of Chinalco's
relationships, resources and capabilities.

The Rio Tinto Boards have extensively considered a range of
strategic options, and have concluded that the opportunity offered
by the strategic partnership with Chinalco, together with the
value on offer for the investments by Chinalco in certain of Rio
Tinto's mineral assets and in the convertible bonds, is superior
to other identified options and offers greater medium term
certainty and long term value for Rio Tinto's shareholders.

Transaction highlights

   * Delivers substantial aggregate cash proceeds of US$19.5
     billion through:

      - Investment by Chinalco in certain aluminium, copper
        and iron ore joint ventures totalling US$12.3 billion

      - The issue of subordinated convertible bonds in two
        tranches with conversion prices of US$45 and US$60
        in each of Rio Tinto plc and Rio Tinto Limited for a
        total consideration of US$7.2 billion.  If converted,
        the subordinated convertible bonds would increase
        Chinalco's current shareholding to 19.0% in Rio Tinto
        plc and 14.9% in Rio Tinto Limited, equivalent to an
        18.0% interest in the Rio Tinto Group

   * Raises significant funds at a time when financial markets
     are distressed, materially reducing Rio Tinto's indebtedness,
     strengthening its balance sheet and increasing its
     flexibility to pursue attractive investment opportunities
     throughout the cycle

   * Creates a pioneering strategic partnership with a leading
     Chinese diversified resources company:

      - Rio Tinto will benefit from Chinalco's strong
        relationships within China, which Rio Tinto believes
        will continue to be the main driver of growth in
        commodity markets over the longer term

      - The strategic partnership creates the opportunity for
        joint ventures and project development in emerging
        economies.  The two groups bring complementary skills,
        including Chinalco's capabilities to deliver
        infrastructure projects and Rio Tinto's leadership in
        operational excellence and sustainable development

      - Rio Tinto will enter into a landmark joint venture for
        exploration in China, in partnership with Chinalco

      - The Chinalco relationship will facilitate access for
        Rio Tinto to funding for project development from
        Chinese financial institutions

   * Chinalco will be entitled to nominate two new non-executive
     Board members (one independent under applicable corporate
     governance criteria) to add to the fifteen current Board
     members of Rio Tinto.  Independent non-executive directors
     will continue to comprise a majority of the Rio Tinto Boards,
     consistent with corporate governance best practice

   * Rio Tinto retains operational control of the joint venture
     assets, with clear governance arrangements and continued
     commercial marketing of joint venture product while
     maintaining its commitment to best practice and sustainable
     development

   * The transaction is subject to approval by the shareholders
     of Rio Tinto, governments and other regulators

The Boards of Rio Tinto plc and Rio Tinto Limited propose
unanimously to recommend that shareholders vote in favour of the
resolutions to be proposed at the shareholders' meetings in order
to effect the transaction.

Commenting on the transaction, Paul Skinner, Chairman of Rio
Tinto, said:

"This transaction will deliver superior value for Rio Tinto
shareholders.  Chinalco's cash investment of US$19.5 billion will
strengthen Rio Tinto's balance sheet, increase our flexibility to
deliver growth as markets recover and position Rio Tinto for the
next decade and beyond.

"We have long recognized and welcomed the growing participation of
China in the global economy and the opportunities this presents to
Rio Tinto.  We believe this transaction is a logical step in
advancing our capability in the Chinese market and the Boards of
Rio Tinto recommend it to shareholders.

"Chinalco's investment is a clear vote of confidence in Rio
Tinto's strength, its growth prospects and the outlook for the
commodities we produce."

Commenting on the transaction, Xiao Yaqing, President of Chinalco,
said:

"This transaction follows our acquisition of a significant stake
in Rio Tinto in February 2008 which laid a solid foundation for
our broader strategic partnership.  It reflects our continued
confidence in the long-term prospects of the industry and the
Chinese economy, the strength of Rio Tinto's world-class
management team and its long term growth prospects. Our objectives
are to seek commodity and geographic diversification, with a view
to achieving long term financial returns from our investments.

"The strategic partnership with Rio Tinto is a perfect fit with
these goals. It aligns us with a leading global diversified miner
with superb tier one assets and a track record of innovation.  It
also allows Chinalco a significant role in a strong industry with
excellent growth prospects and direct economic exposure to Rio
Tinto's leading aluminium, copper and iron ore assets.  With the
portfolio of these global assets, Chinalco will be better
positioned to serve its customers in China and globally.  We will
embrace Rio Tinto's expertise in sustainable development, and with
our complementary areas of expertise will combine to bring the
best of both to project development.  This strategic partnership
represents a key step in Chinalco's development into one of the
world's leading natural resources companies."

Commenting on the transaction, Tom Albanese, Chief Executive of
Rio Tinto, said:

"Since Chinalco made its initial investment a year ago, it has
become clear to both companies that a partnership makes great
strategic sense.  Today's announcement is the culmination of many
months of exploring how we might do this.  Rio Tinto has over 20
years experience of joint ventures with Chinese partners and a
proven track record of delivering value for our shareholders from
existing joint ventures with customers.  The transaction will
forge a pioneering strategic partnership with one of China's
leading and fastest-growing resource companies.  Together we will
create value from joint ventures and will have more options in
project development and exploration - particularly in emerging
economies.  We will benefit from Chinalco's insight in China, the
largest and the fastest growing market in the world for our
products.

"Chinalco has a strong commercial focus and an outstanding track
record of growth and value creating investments.  Together we will
make both businesses stronger, to the benefit of shareholders and
other stakeholders."

                         Default Risks

According to Bloomberg News, Rio Tinto shares fell and debt
default risk jumped after the Group agreed to the US$19.5 billion
transaction.

"We don't like this deal," Bloomberg News cited Goldman Sachs
JBWere Pty analysts led by Neil Goodwill in a report dated
Feb. 12.  "Rio is still in a weak position in terms of its balance
sheet and would be unable to easily participate in expansions,
acquisitions or increase dividend payments for some time."

Bloomberg News relates Rio Tinto struck the deal with Chinalco to
reduce debt.

Rio Tinto, Bloomberg News notes, traded in Australia and London,
dropped 3.4 percent to AU$50.23 in Sydney trading at 2:05 p.m.,
Feb. 13, 2009.

Citing Citigroup Inc. prices, Bloomberg News adds, contracts
protecting Rio Tinto's bonds for five years from default jumped 25
basis points to 560.

            Missed Asset-Sale Targets, May Sell Shares

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 30, 2009, Bloomberg News said Rio Tinto failed to meet its
asset-sale targets due to the global recession, and may sell
shares to help cut debts.

According to a TCR-Europe report on Dec. 11,2008, Rio Tinto plans
to further reduce its net debt by US$10 billion by the end of 2009
through expanding the scope of assets targeted for divestment to
include significant assets not previously highlighted for sale.

The company so far has sold at least US$4.6 billion in assets,
Bloomberg News said.

The group's net debt as of October 31, 2008 stood at US$38.9
billion.

Rio doesn't "rule out the potential to issue equity as one of the
options it has available," the London-based company said in a
Jan. 28 statement obtained by Bloomberg News.

"The likelihood of Rio doing a share sale is increasing,"
Bloomberg News quoted Peter Arden, an analyst at Ord Minnett Ltd.,
an affiliate of JPMorgan Chase & Co., as saying.  "Buyers want
super bargains and Rio does not want to sell at those prices.  Rio
is probably thinking it's better to go to the market."

Bloomberg News recalled Rio increased its debt almost 19-fold
after buying Canadian aluminum producer Alcan Inc. for US$38.1
billion in 2007.

According to Bloomberg News, BHP Billiton abandoned its hostile
US$66 billion bid for Rio Tinto plc on Nov. 25 citing Rio's debt
and slumping demand for commodities.

To reduce costs, Rio said it will:

   -- Reduce global headcount by 14,000, comprising 8,500
      contractor jobs and 5,500 employee roles (annual operating
      cost saving of US$1.2 billion, upfront severance costs of
      US$400 million);

   -- Consolidate offices around the Group, including the
      London head office;

   -- Rapidly accelerate outsourcing and off-shoring of
      IT and procurement in 2009; and

   -- Defer exploration and evaluation expenditure.

                         About Rio Tinto

Rio Tinto -- http://www.riotinto.com/-- is an international
mining group headquartered in the UK, combining Rio Tinto plc, a
London and NYSE listed public company, and Rio Tinto Limited,
which is a public company listed on the Australian Securities
Exchange.

Rio Tinto's business is finding, mining, and processing mineral
resources.  Major products are aluminium, copper, diamonds, energy
(coal and uranium), gold, industrial minerals (borax, titanium
dioxide, salt, talc) and iron ore.  Activities span the world but
are strongly represented in Australia and North America with
significant businesses in South America, Asia, Europe and southern
Africa.


RIO TINTO: S&P Will Rate Convertible Bonds at 'BB+'
---------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BBB'
long-term corporate credit and debt ratings on diversified mining
group Rio Tinto (incorporating Rio Tinto PLC, Rio Tinto Ltd., and
subsidiaries), following the announcement of a planned
US$19.5 billion cash injection from Chinese, state-owned aluminum
producer, Aluminum Corp. of China.  At the same, time S&P placed
the short-term rating of 'A-3' on CreditWatch with positive
implications.  The outlook remains negative.

"S&P regard the announced transaction to be overall positive for
Rio Tinto's near-term credit quality, and as a step forward in
strengthening liquidity and lowering the group's large debt
burden," said Standard & Poor's credit analyst Alex Herbert.
Accordingly, absent any adverse developments, upon completion of
the key components of the transaction, S&P plan to affirm the
long-term 'BBB' rating, raise the short-term rating to 'A-2' from
'A-3', and to revise the outlook to stable from negative.

"However, S&P believes the transaction may also involve
potentially negative consequences for Rio Tinto's business
profile.  In S&P's view, the sale of meaningful minority stakes in
key assets is complex, and involves execution and integration
challenges," said Mr. Herbert.

Subject to satisfactory final documents, the amount to be issued
relative to the capital of the group, and absent any adverse
developments, S&P expects the convertible bonds to be eligible for
intermediate (50%) equity credit, and rated two notches below the
group's ratings, at 'BB+'.

"The negative outlook reflects uncertainty about whether the
necessary approvals that are needed to complete the announced
Chinalco transaction will be received," said Mr. Herbert. In the
absence of any adverse developments, S&P plan to revise the
outlook to stable, once S&P believes that there is a high
likelihood that the key components of the transaction will
complete.  Shareholder, government, and regulatory approvals will
in S&P's view be key milestones.  In the event that key components
of the transaction do not proceed, and if material debt maturities
due in October 2009 and 2010 remain outstanding, then increased
negative rating pressure would in S&P's view likely develop.

In S&P's view, the Chinalco transaction has a positive impact on
Rio Tinto's capital structure, which in S&P's opinion eliminates
refinancing risks in 2009 and 2010.  S&P also consider this to
help mitigate potential downside risks caused by continued
uncertainty as to the depth and duration of the market downturn,
including the level of future metals and minerals prices.  As with
peers, Rio Tinto faces much weaker profits and cash flows in 2009,
due to lower market prices.  S&P factor in a decline in FFO in the
order of 50% in 2009 to about US$7 billion.  A ratio of FFO to
adjusted debt of 25%-30% is consistent with the ratings.


ROXYLIGHT GROUP: Appoints Liquidators from Smith & Williamson
-------------------------------------------------------------
Anthony Cliff Spicer and Henry Anthony Shinners of Smith &
Williamson Limited were appointed joint liquidators of Roxylight
Group Services Ltd. on Jan. 29, 2009, for the creditors' voluntary
winding-up proceeding.

The company can be reached through Smith & Williamson Limited at:

         25 Moorgate
         London
         EC2R 6AY
         England


SAXON URBAN: Brings In Joint Liquidators from Smith & Williamson
----------------------------------------------------------------
Anthony Cliff Spicer and Henry Anthony Shinners of Smith &
Williamson Limited were appointed joint liquidators of Saxon Bond
Urban (One) Ltd. on Jan. 29, 2009, for the creditors' voluntary
winding-up proceeding.

The company can be reached through Smith & Williamson Limited at:

         25 Moorgate
         London
         EC2R 6AY
         England


STYLO PLC: Slips Into Administration; CVA for Two Units Rejected
----------------------------------------------------------------
Graham Ruddick at The Daily Telegraph reports Stylo plc will now
go into administration after creditors and landlords rejected
Thursday a proposal to place its trading subsidiaries, Barratts
Shoes and Priceless Shoes, into a company voluntary arrangement
(CVA).

The CVAs under which creditors and landlords are asked to change
the terms of their contracts would have given Stylo the
opportunity to continue trading and potentially turn
itself around, The Daily Telegraph notes.

The rejection of the CVA proposal has put 5,400 jobs at risk, The
Daily Telegraph notes.  The Daily Telegraph adds a "rapid sale" of
assets was also likely.

Daniel Butters, Deloitte partner and joint administrator, said "As
a consequence we will now seek to achieve a sale as a going
concern to preserve as many jobs as possible.  We are in focused
talks with interested parties in an effort to deliver a swift
solution."

The Daily Telegraph states the landlords were concerned the scheme
would leave them with hundreds of empty properties across the UK
and set a dangerous precedent.

Citing City sources, The Times says Hammerson, which owns five
properties occupied by Stylo, had led opposition to the move.

According to The Sunday Times, creditors have been warned they
could get between nothing and 10p in the pound now that the CVA
has been rejected.

           Michael Ziff to Buy Back Up to 200 Stores

The Sunday Times discloses Michael Ziff, the chairman of Stylo, is
working up a detailed plan to buy back up to 200 of its 380
stores, in a move that could safeguard about 3,000 jobs.

Mr. Ziff, The Sunday Times relates, was in detailed talks with the
administrator, Deloitte, this weekend.

As reported in the TCR-Europe on Jan. 28, 2009, Daniel Butters,
Neville Kahn, and Lee Manning of Deloitte LLP, the business
advisory firm, were appointed joint administrators of Barratts
Shoes and Priceless Shoes, the trading subsidiaries of Stylo plc,
the high street shoe retailer.

The statutory entities in administration were:

   -- Stylo Barratt Shoes Limited,
   -- Stylo Barratt Properties Limited,
   -- Priceless Shoes Properties Limited,
   -- Barratts Shoes Properties Limited, and
   -- Comfort Shoes Limited.

Daniel Butters, Deloitte Partner and Joint Administrator,
said, "Stylo has faced a downturn in trading as a result of
the current difficult economic and market conditions."

On Jan. 22, 2009, the Board of Stylo confirmed that it was
exploring strategic options for the business.  The company
requested that trading in its shares on the Alternative Investment
Market of the London Stock Exchange be suspended pending
clarification of these options.

                          About Stylo Plc

Stylo Plc -- http://www.stylo.co.uk/-- operates 400 high street
shoe stores in the UK under the Barratts and Priceless brands,
employing 5,450 staff in total.  It also has a headquarters in
Bradford, Yorkshire.


TAPEO UK: Taps Joint Administrators from Smith & Williamson
-----------------------------------------------------------
Gregory Andrew Palfrey and Stephen John Adshead of Smith &
Williamson Limited were appointed joint administrators of Tapeo UK
Ltd. on Feb. 3, 2009.

The company can be reached at:

         Tapeo UK Ltd.
         12a Marlborough Place
         Brighton
         East Sussex
         BN1 1WN
         England


WHITTAL-WILLIAMS Ltd: Appoints Joint Administrators from BDO
------------------------------------------------------------
Simon Girling and Graham Randall of BDO Stoy Hayward LLP were
appointed joint administrators of Whittal-Williams Ltd. on Jan.
29, 2009.

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

         One Victoria Street
         Bristol
         BS1 6AA
         England


* Moody's Takes Rating Actions on Six EU Paper Products Companies
-----------------------------------------------------------------
Moody's Investors Service carried out rating actions on six
European paper and forest products companies on the back of a
significant contraction in demand affecting the industry in the
Europe, Middle East and Africa region on top of persistent
structural challenges in the global industry.

The ratings of UPM-Kymmene, Stora Enso Oyj, Norske Skogindustrier
ASA and M-real Oyj were all downgraded:

  -- UPM and its rated subsidiaries: senior unsecured rating to
     Ba1 from Baa3, corporate family rating and probability of
     default rating assigned at Ba1, the rating outlook is stable.
     The downgrade concludes the rating review initiated on 31
     October 2008.

  -- Stora Enso: all long-term ratings to Ba2 from Ba1, the
     ratings were placed under review for possible downgrade.

  -- Norske Skog: all long-term ratings to B2 from B1, the rating
     outlook is stable.

  -- M-real and its rated subsidiaries: all long-term ratings to
     Caa1 from B3, the rating outlook is negative.

The outlook on the ratings of Sappi Ltd and Smurfit Kappa Group
plc. were changed:

  -- Sappi and its rated subsidiaries: outlook to negative from
     stable on Ba2 corporate family rating and Ba2 senior
     unsecured notes issued by Sappi Papier Holding GmbH.

  -- Smurfit Kappa and its rated subsidiaries: outlook to stable
     from positive on Ba3 CFR and PDR, Ba2 notes issued by Smurfit
     Kappa Treasury Funding Limited, and on the B2 subordinated
     notes issued by Smurfit Kappa Funding plc.

Lecta's B1 corporate family rating, Ba3 senior secured notes, and
B3 senior unsecured notes rating were left unchanged with a
negative outlook.

"The rating actions reflect the significant pressure currently
being exerted on demand levels for the majority of paper,
packaging and wood products as a result of the global cyclical
contraction, but also Moody's expectation that these pressures
will be sustained going forward on top of persistent structural
challenges.  This will likely further weaken the already depressed
cash flow generation ability and debt repayment capability of
European paper and forest products companies," says Christian
Hendker, Moody's lead analyst for the paper and forest products
industry in the EMEA region.

"On the one hand, sector ratings already incorporate the
underlying cyclicality of the paper and forest products industry,
allowing for some volatility in debt protection measures.
However, the speed of onslaught and the depth of the current
downturn is unprecedented and is exercising significant downward
pressure, particularly for those issuers with a track record of
prolonged negative free cash flows and a weakening in their
financial flexibility, which is viewed as critical to withstand an
extended duration of demand contraction," Mr Hendker adds.
Moody's will closely assess each company's cash preservation
ability and any measures it implements to maintaining a sufficient
financial flexibility, including measures to refinance debt
maturities on a timely basis and, for some issuers, ensuring
compliance with financial covenants.

The rating actions also consider that, at the outset of the
current downturn, the majority of the companies were already
weakly positioned in their respective rating categories with
limited headroom for further weakening credit metrics, with most
of the ratings in fact anticipating improvements in credit
metrics.  The companies' credit profiles were characterized by
continuously weakening cash-flow generation ability as a result of
a period of structural overcapacity in Europe, which made it
extremely difficult for them to increase prices sufficiently to
offset the impact of gradually weakening volumes and, in
particular, to recover the constant rises in input costs for pulp,
wood, transportation and energy.

Somewhat mitigant these adverse developments, the pressure from
rising input costs has recently eased with some relief on margins
and cash flows over the coming quarters possibly occurring.  This
will be closely correlated to the industry's ability to defend or
improve pricing power, which Moody's views as challenging in the
short term in light of re-widening capacity under-utilization
levels.  As the demand supply balance is a key determinant of
pricing power, Moody's expects temporary or permanent capacity
adjustments to continue in the context of the weakening demand
scenario.

                        UPM-KYMMENE

UPM's ratings were downgraded to Ba1 from Baa3, prompted by the
accelerated erosion of the company's cash flow generation, which
has resulted in current and expected credit metrics below the
requirements for an investment-grade rating.

The Ba1 ratings continue to reflect UPM's strong market position
as one of the world's largest paper and forest products companies,
its solid geographic and segmental diversification, a high level
of vertical integration and a track record with above-average
profitability levels.  However, in recent years these have not
translated into operating cash generation levels adequate for the
previous rating category, and cash flows have not been
sufficiently retained to strengthen the financial profile in
advance of the current cyclical contraction.

The stable rating outlook reflects UPM's solid financial
flexibility with an extended debt maturity profile, and Moody's
expectation that, over the coming quarters, UPM will turn around
negative free cash flows to break-even levels, supported by a
modified financial policy focused on cash preservation, continued
capacity adjustments, operational restructuring activities and
benefits from weakening input cost levels.  The last rating action
on UPM was on October 31, 2008, when the Baa3 ratings were placed
on review for possible downgrade.

                        Stora Enso

Stora Enso's ratings were downgraded to Ba2 from Ba1 and were
placed under review for further possible downgrade, prompted by a
severe profit erosion in all divisions and a significant reduction
of cash flow generation ability in recent months, well below
historical levels, which is in contrast to Moody's expectation of
gradual performance improvements, as outlined in the agency's
rating action of October 28, 2008 when the rating outlook was
changed to negative from stable.  The cash flow generation
ability, as reflected in free funds from operations as reported
has dropped from EUR1.7 billion in 2007 to EUR0.5 billion in 2008,
while debt levels have not been improved.  As a result credit
metrics are currently below the requirements for the Ba rating
category.

Moody's recognizes Stora Enso's proactive measures to address the
recent performance erosion, but a timely reflection of these
measures evidenced by a turnaround in free cash flow generation
supported by an improving cash flow generation ability from
operations improving credit metrics back towards the requirements
for the Ba rating category are essential to avoid further downward
rating pressure.  While the rating reflects Stora Enso's solid
business profile as one of the leading global paper and forest
products companies with a solid segmental diversification and a
solid vertical integration, this has not been sufficient to
shelter the company against pressures resulting from weakening
demand levels and rising input costs, which have only recently
leveled off.

The rating review will focus on Stora Enso's ability and timing in
restoring profitability, free cash flow generation and financial
leverage back towards levels commensurate with the Ba rating
category as well as the sufficiency of Stora's financial
flexibility.  The review will consider Stora's trading prospects
in all divisions particularly focusing on continued volume
pressure, pricing development, but also benefits from input cost
deflation, ongoing and likely additional restructuring
initiatives.

Moody's says that any downgrade is likely to be limited to one
notch, as the company still has a relatively strong business
profile with a solid financial flexibility.  Moody's expects to
conclude the rating review within the next weeks.

Norske Skog

Moody's has downgraded the ratings of Norske Skog to B2 from B1
and changed the rating outlook from negative to stable, as Moody's
expects that operating performance in 2009 is unlikely to be
improved towards levels required for the previous B1 rating
category.  The rating action is based on the view that benefits
from targeted price increases and lower input costs could be
offset by pressure on newsprint and magazine paper volumes, which
makes it unlikely that credit metrics will be improved over the
next quarters.

Moody's acknowledges that the company managed in 2008 to generate
positive free cash flows supported by cost structure improvements,
dividend suspension as well as capex reductions below historical
levels, and has strengthened its liquidity position with the
proceeds of asset sales.  However, the B2 rating reflects the
evidence that the current level of operating cash flow generation
from its newsprint and magazine division relative to its financial
debt is not appropriate or sustainable for a rating at the higher
end of the single-'B' rating category.

The stable outlook is based on the expectation that Norske Skog
will continue to generate positive free cash flows in a
challenging operating environment and preserves a solid financial
flexibility, including adequate headroom under financial covenants
and the timely refinancing of debt maturities.  The last rating
action was on April 1, 2008, when Moody's downgraded Norske Skog
to B1 with a negative outlook from Ba2.

M-Real

The downgrade of M-real's CFR to Caa1 from B3 reflects the
company's insufficient cash flow generation in recent quarters in
view of its high debt levels.  The company's free cash flow
generation continues to be negative and M-real is facing continued
pressure from the bleak demand outlook for paper and packaging
products far into 2009, which could be somewhat mitigated by
continued cost reduction and efficiency improvements but also a
softening input cost trend.  This could further depress the profit
and dividend contribution from Metsa-Botnia, a pulp manufacturer
in which M-real has a 30% stake.

The negative outlook mainly reflects Moody's concerns with regard
to the current industry weakness and its impact on M-real's cash
flow generation and financial flexibility.  While the company's
liquidity position, following the disposal of the graphic paper
assets to Sappi at the end of 2008, is nominally sufficient to
cover short-term debt maturities, the prospects of continued free
cash flow consumption over the coming quarters in light of the
bleak demand outlook for paper and packaging products far into
2009 could again depress the company's financial flexibility and
limit its ability to address medium-term debt maturities.

The last rating action was on September 29, 2007, when Moody's
changed the outlook on M-real's B3 corporate family rating to
negative from stable.

SAPPI

Moody's has affirmed Sappi's Ba2 ratings but changed the rating
outlook to negative from stable driven by profit and cash flow
erosion in the first quarter of fiscal year 2009 (ending December
31) and the uncertainty with regard to whether these pressures
will persist for an extended period.  The recent performance
erosion was prompted by a significant decline in demand and
pricing for pulp as well as demand contraction for fine paper in
all regions while pricing in Europe remained relatively robust.
This development is in contrast to Moody's expectations of
constant improvements in credit metrics previously factored into
Sappi's Ba2 rating, as outlined in the Issuer Comment published on
September 29, 2008, when Moody's left the ratings unchanged
following the announcement of the acquisition of four graphic
paper mills from M-real.

Consequently, the negative outlook reflects the challenge the
company faces in preserving profitability and credit metrics in
line with Moody's expectations for the Ba2 rating category over
the coming quarters, which is closely correlated to the
sustainability of fine paper price increases it implemented
recently in Europe, the efficiency of further capacity
curtailments and the realization of expected synergies following
the acquisition of M-real's graphic paper assets.  The negative
outlook is also closely linked to Sappi's ability to preserve a
solid financial flexibility, including a timely refinancing of
debt maturities and maintaining sufficient financial covenants
headroom.

The affirmation of the Ba2 ratings reflects Sappi's market
position as one of the leading global fine paper manufacturers
with a good level of vertical integration and a track record of
solid profitability levels.  The last rating action was on
June 11, 2008, when Sappi's ratings were downgraded to Ba2 with a
stable outlook.

Smurfit Kappa

Moody's affirmed Smurfit Kappa's ratings, but changed the rating
outlook to stable from positive, based on a significant demand
reduction and weakening pricing levels for containerboard and
corrugated packaging products in recent months, with a negative
impact on profitability and cash flow generation.  This will
likely prevent the company achieving and sustaining the credit
metrics required for a rating upgrade.  In addition, further
pressure on packaging product prices is expected not only from a
cyclical demand weakening over the next months but also from
structural challenges as new capacity is coming on stream over
2009/2010.  Moody's notes that pressure on pricing will be
somewhat mitigated by a decline in input prices, especially for
energy cost but also old corrugated containers given that Smurfit
Kappa has a relatively low degree of vertical integration for
recovered paper.  In addition, Smurfit Kappa is continuously
implementing actions to overcome these operational challenges,
such as temporary capacity shutdowns and cost-saving initiatives,
factors that should help it retain credit metrics commensurate
with the current Ba3 rating.  Consequently, the stable outlook is
based on the assumption that the company will continue to generate
free cash flows, preserve its solid liquidity cushion and maintain
sufficient headroom under its gradually tightening financial
covenants included in its senior bank debt documentation.  The
last rating action was on June 11, 2008, when the rating outlook
was changed to positive from stable.

                            Lecta

Moody's left Lecta's CFR unchanged at B1 with a negative outlook,
as the ongoing operational pressures were already incorporated
into the last rating action on December 4, 2008, when the rating
outlook was changed to negative from stable.  This outlook change
was driven by a continued contraction in Lecta's operating
performance and declining operating cash flow generation in the
first nine months of 2008 despite rising paper deliveries, as a
result of input cost inflation which has not been fully recovered
by price increases, evidenced in credit metrics below Moody's
expectations for the current B1 CFR.  The negative outlook
considers the uncertainty that weakening demand levels in Lecta's
main market, given the bleak macroeconomic outlook for Western
Europe, could make it challenging for the company to improve
profitability and credit metrics back towards the requirements of
the B1 rating category, which would add further downward rating
pressure.

While Moody's recognizes that Lecta has constantly adjusted its
cost structure and implemented measures to realign capacity with
weakening industry-wide demand levels over the last few years,
such as the latest restructuring program targeting Lecta's Spanish
operations, debt protection metrics are currently below the
requirements for the B1 rating category.  Lecta's track record of
generating positive free cash flows, as well as an extended debt
maturity profile and a solid liquidity cushion have prevented a
downgrade at the current point in time, combined with the
expectation of margin improvements by a softening of recent cost
inflation, an improving exchange rate environment, additional
restructuring measures; and the implementation of price increases
following industry-wide capacity curtailments and consolidation.
The rating could be downgraded over the next quarters if Lecta is
not able to benefit from these positive catalysts or if potential
volume shortfalls on the back of the softening macroeconomic
environment diminish those positive effects.  Indicators for a
downgrade would be an EBITDA margin remaining well below 9%, debt/
EBITDA remaining above 6x, retained cash flow to debt remaining
below 10%, or negative free cash flows.

The rating outlook could be changed back to stable if Lecta's key
credit metrics are gradually recovered, evidenced by an EBITDA
margin trending back above 9%, and debt coverage in terms of
retained cash flow to debt trending above 10% and evidence of
sustained positive free cash flows.

UPM, headquartered in Helsinki, Finland, with around EUR10 billion
in annual revenues in 2008 is one of the world's largest paper and
forest products companies.  The company has a leading position in
communication paper grades (newsprint, magazine, fine and
specialty paper) and is also active in label materials and wood
products.

Stora Enso, with headquarters in Helsinki, Finland, is among the
world's largest paper and forest products companies with 2008
annual sales of approximately EUR11 billion.

M-real, headquartered in Espoo, Finland, is among Europe's largest
integrated paper and forest products companies with sales of
around EUR3.2 billion in 2008.

Norske Skog, headquartered in Lysaker in Norway, is among the
world's leading newsprint producers with sales activities in
Europe, the Americas and Asia, as well as Australia and New
Zealand.  The company also produces magazine paper in Europe.  In
fiscal year 2008, Norske Skog recorded sales of around NOK27
billion.

Sappi Ltd, domiciled in Johannesburg, South Africa, is among the
leading global producers of coated fine paper with group sales of
US$5.7 billion in FY 2008 (ended September).

Smurfit Kappa Group plc is Europe's leading manufacturer of
containerboard and corrugated containers as well as specialty
packaging, which includes, for example, bag-in-box packaging of
liquids such as water or wine.  The group also holds leading
positions for its major product lines in South America.  In 2008,
SKG reported EUR7.1 billion of revenues.

Lecta S.A., with legal headquarters in Luxembourg, is among
Europe's leading coated fine paper manufacturers with production
facilities in Spain, Italy and France.  The company also has a
specialty paper division and distribution business in the Iberian,
French and Argentinean markets.  Lecta generated group sales of
EUR1.6 billion over the last 12 months ending September 2008.


* Large Companies with Insolvent Balance Sheet
----------------------------------------------
                                Shareholders    Total   Working
                                    Equity      Assets   Capital
                          Ticker    (US$MM)    (US$MM)   (US$MM)
                          ------ -----------  -------   --------

AUSTRIA
-------
Libro AG                            (110)         174     (168)
Sky Europe                            (4)         213      (54)


BELGIUM
-------
Sabena S.A.                          (85)       2,215     (279)


CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192      (59)
Setuza A.S.                          (61)         139      (62)


DENMARK
-------
Elite Shipping                       (28)         101        3
Roskilde Bank                       (533)       7,877      N.A.


FRANCE
------
BSN Glasspack                       (101)       1,151      159
Grande Paroisse S.A.                (927)         629      347
Immob Hoteliere                      (67)         301      (17)
Lab Dosilos                          (28)         110      (44)
Matussiere et Forest S.A. MTF        (78)         294      (38)
Pagesjaunes GRP           PAJ     (3,023)       1,377     (453)
Rhodia SA                           (342)       6,507      712
SDR Centrest                        (132)        (252)     N.A.
Selcodis S.A.             SPVX       (21)         141      (36)
Trouvay Cauvin                        (0)         134        9


GERMANY
-------
Alno AG                   ANO        (21)         340      (88)
Brokat AG                            (27)         144      109
CBB Holding AG            COB        (43)         905      N.A.
Cinemaxx AG               MXC        (38)         178      (47)
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (27)
EECH Group AG                          0          109       57
EM.TV AG                  EV4G.BE    (22)         849       19
Kaufring AG               KAUG       (19)         151      (48)
Kunert AG                            (28)         102       29
Maternus Kliniken AG      MAK.F      (17)         182      (99)
Nordsee AG                            (8)         195      (14)
P & T Technology                       0          109       57
Primacom AG               PRC        (14)         730      (68)
Rinol AG                               0          168       (6)
Sander AG                             (6)         128       32
Sinnleffers AG                        (4)         454     (182)
Spar Handels- AG          SPAG      (442)       1,433     (294)
TA Triumph-Adler          TWN        (66)         484      (77)
Vivanco Gruppe                       (10)         131       28


GREECE
------
Empedos SA                           (34)         175      (57)
Noussa Spin                          (11)         450     (107)
Petzetakis-PFC            PETZP      (15)         294     (143)
Radio A.Korassidis        KORA      (101)         181     (165)
   Commercial
Themeliodome                         (56)         232     (128)
United Textiles                      (11)         450     (107)


HUNGARY
-------
Brodograde Indus                   (322)         264      (366)
IPK Osijek DD OS                    (15)         124       (82)
OT Optima Teleko                    (26)         119         7


ICELAND
-------
Decode Genetics                    (187)         111        48


IRELAND
-------
Elan Corp PLC             ELN      (388)       1,599       705
Waterford Wed Ut          WTFU     (506)         821       364


ITALY
-----
Binda S.p.A.              BND        (11)         129      (23)
Cirio Finanziaria S.p.A.            (422)       1,583      N.A.
Gruppo Coin S.p.A.        GC        (152)         791      (61)
Compagnia Italia          ICT       (138)         527     (318)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,213      N.A.
Fullsix                               (4)         114      (18)
I Viaggi del
   Ventaglio S.p.A.       VVE        (73)         540     (127)
Lazzio S.p.A.                        (15)         261      (40)
Olcese S.p.A.             OLCI.MI    (13)         180      (80)
Parmalat Finanziaria
   S.p.A.                        (18,4219)       4,121  (16,919)
Snia S.p.A.               SN         (25)         488       31
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (30)


NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
James Hardie Ind.                   (238)       2,357      184
United Pan-Euro Air       UPC     (5,505)       5,113   (9,170)


NORWAY
------
Interoil Exploration      IOX        (25)         210      (11)
Petroleum-Geo Services    PGO        (18)         400     (758)


POLAND
------
Toora                               (289)          147     (86)


ROMANIA
-------
Oltchim RM Valce          OLT         (7)         673     (170)
Rafo Onesti               RAF       (430)         353     (616)


RUSSIA
------
Akcionernoe Brd                     (117)         135      (24)
East Siberia Brd          VSNK      (113)         148      (11)
Gukovugol                            (58)         144     (148)
OAO Samaraneftegas                  (332)         892     (611)
Vanadiy-Tula-Brd                     (12)         105       (3)
Vimpel Ship               SOVP      (116)         135      (24)
Zil Auto                  ZILLP     (240)         478     (447)


TURKEY
------
Egs Ege Giyim VE                      (7)         147      (25)
Iktisat Financial                    (46)         108      N.A.
Mudurnu Tavukcul                     (65)         160     (115)
Nergis Holding                       (77)         299       38
Sifas                                (17)         117       21


UKRAINE
-------
Dniprooblenergo           DNON       (51)         433     (200)
Donetskoblenergo          DOON      (367)         631     (469)


UNITED KINGDOM
--------------
Advance Display                   (3,016)       2,590     (411)
Airtours Plc                        (379)       1,818     (932)
Alldays Plc                         (120)         252     (290)
Amer Bus Sys                        (497)         121     (497)
Amey Plc                  AMY        (49)         932      (76)
Anker Plc                            (22)         115       16
Atkins (WS) Plc           ATK        (46)       1,345       58
Black & Edgingto                    (140)         203       23
BNB Recruitment                      (10)         104       38
Booker Plc                BKRUY      (60)       1,298      (13)
Bradstock Group           BDK         (2)         269        7
British Energy Ltd                (5,823)       4,921      534
British Energy Plc        BGY     (5,823)       4,921      534
British Sky Broadcast               (334)       8,126     (388)
Carlisle Group                       (12)         204       30
Compass Group             CPG       (668)       2,972     (440)
Danka Bus                           (497)         121     (497)
Dawson Holdings                      (18)         226      (63)
Dignity Plc               DTY         (9)         648       71
E-II Holdings                       (199)         651      149
Easynet Group             ESY.L      (45)         323       68
Electrical and Music
   Industries Group       EMI     (2,266)       2,950     (582)
European Home                        (14)         111      (70)
Farepak Plc                          (14)         111      (70)
Gartland Whalley                     (11)         145      (13)
Hilton Food Group                    (21)         256      (12)
Kleeneze Plc                         (14)         111      (70)
Ladbrokes Plc             LAD       (814)       2,403     (706)
Lambert Fenchurch Group               (1)       1,827        5
Leeds United                         (73)         144      (48)
M 2003 Plc                        (2,204)       7,204   (1,078)
Mytravel Group            MT.L      (380)       1,818     (931)
New Star Asset                      (398)         293       21
Next Plc                            (119)       3,161     (125)
Orange Plc                ORNGF     (594)       2,902       12
Orbis Plc                             (4)         128       (5)
Patientline Plc                      (55)         125      (10)
Preedy Alfred                       (119)       3,161     (125)
Rank Group Plc                      (132)       1,066     (175)
Regus Plc                            (46)         367      (97)
Rentokil Initial                      (8)       4,178     (886)
Saatchi & Saatchi         SSI       (119)         705      (66)
Samsonite Corp.                     (199)         651     (149)
SFI Group                 SUF       (108)         178     (265)
Skyepharma Plc            SKP       (140)         203       23
Smiths News Plc                     (124)         201      (92)
Styles & Wood                        (57)         107       (9)
Telewest
   Communications Plc     TLWT    (3,702)       7,581  (10,042)
Thorn Emi Plc                     (2,266)       2,950     (582)
Topps Tiles Plc                     (111)         195       18
Trio Finance                         (14)         592      N.A.
UTC Group                            (12)         204       30
Virgin Mobile                       (392)         166     (176)
Watson & Philip                     (120)         252     (290)

                            *********

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.  Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine
C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie
Therese V. Profetana and Peter A. Chapman, Editors.

Copyright 2009.  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 * * *