TCREUR_Public/090304.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, March 4, 2009, Vol. 10, No. 44

                            Headlines

A U S T R I A

DEX LLC: Claims Registration Period Ends March 12
FRANZ R. LEITNER: Claims Registration Period Ends March 16
MARIJA KOLLER: Claims Registration Period Ends March 16
WSR LLC: Claims Registration Period Ends March 12


C Z E C H   R E P U B L I C

CENTRAL EUROPEAN: Moody's Cuts Corporate Family Rating to 'Ba3'


E S T O N I A

* ESTONIA: Sweden Central Bank Offers SEK10 Bln Financing


F R A N C E

HOUSE OF EUROPE I: Fitch Junks Ratings on Two Classes of Notes
HOUSE OF EUROPE II: Fitch Junks Ratings on Two Classes of Notes
HOUSE OF EUROPE III: Fitch Cuts Rating on Class A Notes to 'CCC'
HOUSE OF EUROPE IV: Fitch Junks Ratings on Three Classes of Notes


G E R M A N Y

ABS WOHNBAU: Claims Registration Period Ends March 27
DATASTREET PROJECTS: Claims Registration Period Ends April 1
DRESDNER BANK: Moody's Cuts Bank Financial Strength Rating to 'E+'
ELEMENT UND MASSIVBAU: Claims Registration Period Ends March 27
EUROHYPO AG: Moody's Cuts Bank Financial Strength Rating to 'D'

HERTIE GMBH: Court Opens Official Insolvency Proceedings
PROCREDIT BANK: Fitch Assigns 'D' Individual Rating
TROBA GMBH: Claims Registration Period Ends March 27


I C E L A N D

ISLANDSBANKI: Vilhjalmur Vihjalmsson to be Named New Chairman
NEW KAUPTHING: New Chair Quits Post Two Days After Appointment

* ICELAND: Gov't Drops Court Action vs. UK Over Anti-Terror Laws
* ICELAND: Net Asset Valuation of Banks to Be Completed in April


I R E L A N D

EURO COACH: Shuts Down Business; 62 Jobs Affected
WATERFORD WEDGWOOD: UK and Irish Businesses Sold to KPS Capital


I T A L Y

SEAT PAGINE: Fitch Affirms Long-Term Issuer Default Rating at 'B+'


K A Z A K H S T A N

AKTAU TERMINAL: Creditors Must File Claims by April 17
ATAMEKEN JSC: Creditors Must File Claims by April 17
DIN AR: Creditors Must File Claims by April 17
INVEST BEREKE: Creditors Must File Claims by April 17
INTEGRA MANAGEMENT: Creditors Must File Claims by April 17

PAVLODAR SNUB: Creditors Must File Claims by April 17
TECHNIKA-V LLP: Creditors Must File Claims by April 17
TRANS FOOD: Creditors Must File Claims by April 17
TRANSIT TAIRA: Creditors Must File Claims by April 17
VK FOOD: Creditors Must File Claims by April 17


K Y R G Y Z S T A N

IMMIGRATION & EMPLOYMENT: Creditors Must File Claims by March 20


L I T H U A N I A

* LITHUANIA: Enters Technical Recession


L U X E M B O U R G

COLT TELECOM: Mulls GBP178 Mln Rights Issue


N E T H E R L A N D S

CARLSON WAGONLIT: S&P Cuts Long-Term Corp. Credit Rating to 'B'
HARBOURMASTER CLO 5: Fitch Cuts Ratings on Two Tranches to Low-B
HARBOURMASTER CLO 8: Fitch Cuts Rating on Class E Notes to 'B'
HARBOURMASTER PRO-RATA: Fitch Cuts Rating on Cl. B2 Notes to 'B'
SCEPTRE CAPITAL: S&P Cuts Rating on EUR40 Mln Notes to 'BB-'

SNS REAAL: Fitch Downgrades Long-Term Issuer Default Rating


P O L A N D

POLSKI KONCERN: Fitch Cuts Issuer Default Rating to 'BB+'


P O R T U G A L

BANCO PRIVADO: Moody's Cuts Bank Financial Strength Rating to 'E'


R O M A N I A

* ROMANIA: Officials in Talks with IMF on Financing


R U S S I A

ALTAY-STROY-KOM CJSC: Court Names Insolvency Manager
BACHATSKIY REINFORCED: Creditors Must File Claims by March 22
CENTRAL TELECOM: S&P Affirms Long-Term Corp. Credit Rating at 'B+'
EVRO-LES LLC: Creditors Must File Claims by April 22
IRKUTSKAYA FUEL: Creditors Must File Claims by April 22

MERRILL LYNCH: Russian M&A Head Quits Post
NORTH-WEST TELECOM: S&P Affirms Corporate Credit Rating at 'BB-'
PROKOP'EVSKIY METAL: Kemerovskaya Bankruptcy Hearing Set June 17
PROM-EXPRESS LLC: Creditors Must File Claims by April 22
SHAKHTO-STROITEL' LLC: Creditors Must File Claims by April 22

SOUTHERN TELECOM: S&P Puts 'B' Credit Rating on Negative Watch
STROY-MONOLIT LLC: Court Names Temporary Insolvency Manager
TMK OAO: S&P Changes Outlook to Negative; Affirms 'B+' Rating
URALSVYAZINFORM OJSC: S&P Puts 'BB-' Rating on Negative Watch
VIRAZH-STROY LLC: Creditors Must File Claims by April 22

* RUSSIA: Invested RUR400 Bln to Aid Domestic Banks


S P A I N

RENTA CORPORACION: Inks Syndicated Loan Refinancing Deal


S W E D E N

* SWEDEN: Economy Fell 4.9% Annually in 4th Qtr on Slowing Export


S W I T Z E R L A N D

AGEMA JSC: Creditors Must File Proofs of Claim by March 18
EDP ASSISTANCE: Deadline to File Proofs of Claim Set March 18
EDUTREND LLC: Creditors Have Until March 18 to File Claims
ESTA LLC: Proof of Claim Filing Deadline is March 18
JOST + PARTNER: Creditors' Proofs of Claim Due by March 18

KINDER-ARCHE LLC: March 18 Set as Deadline to File Claims
LIGOSSA JSC: Creditors Must File Proofs of Claim by March 18
ROBRU HEBEBUHNEN: Deadline to File Proofs of Claim Set March 18


U K R A I N E

INTERFOTO LLC: Creditors Must File Claims by March 15
LAREN LLC: Creditors Must File Claims by March 15
NADRA BANK: S&P Downgrades Long-Term Issuer Credit Rating to 'SD'
PROMAKS LLC: Court Starts Bankruptcy Supervision Procedure
QUEST-LTD LLC: Creditors Must File Claims by March 15

ROST LLC: Creditors Must File Claims by March 14
UKRAINIAN CHEMICAL: Creditors Must File Claims by March 14
UKRAINIAN GAZ: Court Starts Bankruptcy Supervision Procedure

* UKRAINE: World Bank to Provide US$750 Mln Loan with Conditions


U N I T E D   K I N G D O M

CANDOVER INVESTMENTS: Cancels EUR1 Bil. Investment in Equity Fund
CARLSBRO ELECTRONICS: Appoints Joint Administrators from PKF
DECO 11-UK: S&P Retains 'D' Rating on Class F Notes
COURTS PLC: Creditors Gets Payout After Four Years
DIAMONDS AND PEARLS: In Administration; KPMG Appointed

EBTM: Asks Court to Appoint Administrators
GODWIN DEVELOPMENTS: Taps Joint Administrators from PKF
HOWARD STANLEY: Appoints Joint Administrators from PKF
JOHN BLACKBURN: KPMG Named Joint Administrators
LEEK FINANCE: S&P Puts 'BB'-Rated Notes on Negative Watch

MOSAIC FASHIONS: In Administration; Deloitte Appointed
PETER NEWMAN: Taps Joint Administrators from BDO Stoy Hayward
PRELUDE EUROPE: S&P Cuts Rating on AU$40 Mln Notes to 'BB+'
ROYAL BANK: Chairman Hampton Gets 5.17 Mln Shares on Top of Pay
SAPHIR FINANCE: S&P Cuts Rating on EUR40 Mln Notes to 'BB+'

WHITBREAD PLC: Continues to Report Negative Sales

* KPMG Survey Says UK Businesses Sees Gloomy Economic Outlook
* EASTERN EUROPE: Hungary PM Calls on EU for Funding Arrangement
* EASTERN EUROPE: EBRD Head Says Banks May Need US$150 Bln Funding


                         *********


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


DEX LLC: Claims Registration Period Ends March 12
-------------------------------------------------
Creditors owed money by LLC Dex (FN 300073i) have until March 12,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Georg Unger
         Mariahilfer Strasse 50
         1070 Wien
         Austria
         Tel: 523 62 00 Serie
         Fax: 526 72 74
         E-mail: office@sup.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on March 26, 2009, for the
examination of claims at:

         Trade Court of Vienna (007)
         Room 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 12, 2009, (Bankr. Case No. 5 S 5/09h).


FRANZ R. LEITNER: Claims Registration Period Ends March 16
----------------------------------------------------------
Creditors owed money by LLC Franz R. Leitner (FN 108672m) have
until March 16, 2009, to file written proofs of claim to the
court-appointed estate administrator:

         Dr. Hans-Peter Neher
         Pfarrgasse 5
         4820 Bad Ischl
         Austria
         Tel: 06132/28373
         Fax: 06132/28373-6
         E-mail: dr.neher@ihr-rechtsanwalt.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:00 a.m. on March 26, 2009, for the
examination of claims at:

         Land Court of Wels (519)
         Hall 101
         Wels
         Austria

Headquartered in Neukirchen bei Altmünster, Austria, the Debtor
declared bankruptcy on Jan. 15, 2009, (Bankr. Case No. 20 S
6/09x).


MARIJA KOLLER: Claims Registration Period Ends March 16
-------------------------------------------------------
Creditors owed money by LLC Marija Koller (FN 277595d) have until
March 16, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Beate Holper
         Gonzagagasse 15
         1010 Wien
         Austria
         Tel: 533 28 55
         Fax: 533 28 55 -28
         E-mail: office@anwaltwien.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on March 30, 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. 21, 2009, (Bankr. Case No. 3 S 11/09a).


WSR LLC: Claims Registration Period Ends March 12
-------------------------------------------------
Creditors owed money by LLC WSR (FN 287046b) have until
March 12, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Viktor Igali-Igalffy
         Landstrasser Hauptstrasse 34
         1030 Wien
         Austria
         Tel: 01/713 80 57 Serie
         Fax: 713 07 76
         E-mail: vii@igali-igalffy.eu

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on March 26, 2009, for the
examination of claims at:

         Trade court of Vienna (007)
         Room 1703
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Jan. 16, 2009, (Bankr. Case No. 5 S 6/09f).


===========================
C Z E C H   R E P U B L I C
===========================


CENTRAL EUROPEAN: Moody's Cuts Corporate Family Rating to 'Ba3'
---------------------------------------------------------------
Moody's Investors Service has downgraded to Ba3 from Ba2 the
Corporate Family Rating of Central European Media Enterprises Ltd
and the ratings on the EUR150 million senior notes due 2014 and
the EUR245 million senior notes due 2012.  The outlook remains
negative.  This rating action follows an assessment of CME's
annual results for 2008, in conjunction with Moody's consideration
of possible operating performance trends in 2009.

The rating action reflects Moody's view that after years of strong
economic growth, the rapidly deteriorating macroeconomic backdrop
in CME's markets will take its toll on the company's TV
advertising revenues in 2009, which will very likely lead to a
meaningful deviation from the company's earlier expectation (as
communicated in its Q3 2008 results) of delivering EBITDA growth
in local currency terms under any likely economic scenario in
2009.  Moreover, the depreciation of local currencies against the
US dollar (the presentation currency), which has accelerated,
particularly over the past few weeks, will significantly undermine
the company's cash generation capacity, credit metrics, and (if
necessary) debt incurrence ability.

Based on its preliminary analysis and current visibility, Moody's
anticipates that the company's leverage as measured by Net
Debt/EBITDA (as adjusted by Moody's) is likely to be above 5x
(possibly at the lower-end) at the end of 2009 (based on the
recent foreign exchange rates), and significantly above Moody's
earlier expectations.  Looking ahead, there is limited visibility
regarding the extent and duration of macroeconomic deterioration
in East European countries, which increases Moody's concerns about
the positioning of the company's ratings over the next 12 to 18
months.

With regards to its exposure to foreign exchange movements,
Moody's notes that CME reports its results in US dollars, while
the majority of its revenues (excluding Ukraine where the
functional currency is US dollars) and roughly 70% of costs are in
local currencies including the Czech koruna, Romanian new lei, and
euro in Slovenia.  In the absence of any appropriate hedging
facilities, the principal amounts of senior notes - EUR245 million
due 2012, EUR150 million due 2014 and US$475 million convertible
notes due 2013- and the interest payment on a convertible bond are
exposed to movements in foreign exchange rates.  With respect to
the euro-denominated interest payments on senior notes, there is a
currency swap agreement on a part of the Czech koruna-denominated
cash flows generated by its Czech Republic operations.

More positively, Moody's notes that the rating continues to factor
in: i) CME's leading positions in the TV broadcasting market in
most of the seven Central and Eastern European countries where it
operates; ii) its solid audience share levels supported by its
multi-channel offerings; and iii) its adequate liquidity profile
over the next 12 months to December 2009.

The negative outlook on the rating reflects that downward pressure
could be exerted on CME's ratings if: i) the macroeconomic
backdrop in its markets, the depreciation of local currencies
against the US dollar, and the company's operating performance
deteriorate more severely than currently anticipated by Moody's,
resulting in leverage on a Net Debt/EBITDA basis (as adjusted by
Moody's) exceeding 5.5x for a prolonged period of time; ii) the
company cannot keep its strong market positioning intact in its
core markets; iii) its liquidity profile weakens while navigating
through a deepening recession; and iv) the company alters its
acquisition strategy or pursues heavier investments in its new
ventures (i.e. businesses in Ukraine, Bulgaria and Croatia) than
currently contemplated (i.e. US$100 million).

Moody's notes that although the rating of the notes currently
remains at the same level as the CFR, the increasing amount of
borrowings at the operating company level ranking structurally or
effectively ahead of the notes, may ultimately result in bond
ratings being positioned one notch below the CFR.

The last rating action on CME was on November 3, 2008, when
Moody's changed the outlook on the ratings to negative from
stable.

Central European Media Enterprises Ltd., a Bermuda-based company
is a TV broadcasting company with networks in seven Central and
Eastern European countries.  Launched in 1994, CME and its
partners now operate 19 channels, including TV Nova, Nova Cinema
and Nova Sport in the Czech Republic; PRO TV, PRO Cinema, Pro
International, Sport.ro, MTV and Acasa in Romania; Nova TV in
Croatia, TV Markiza and Nova Sport in the Slovak Republic; POP TV
and Kanal A in Slovenia; and Studio 1+1, Studio 1+1 International
and Kino in Ukraine; and the recently acquired TV2 and Ring TV in
Bulgaria.  For the year ending 31 December 2008, CME generated net
revenues of US$1,020 million and segment EBITDA of US$346 million.


=============
E S T O N I A
=============


* ESTONIA: Sweden Central Bank Offers SEK10 Bln Financing
---------------------------------------------------------
Estonia's central bank, Eesti Pank, has entered into a
precautionary agreement with Sweden's central bank, Sveriges
Riksbank, to secure financial stability and to promote confidence
on the financial markets.

Under the agreement, Eesti Pank may borrow up to SEK10 billion
(US$1.1 billion) against Estonian kroons.

"It is important that central banks cooperate and assist each
other in times of financial stress.  The financial systems in
Estonia and Sweden are closely linked.  The Riksbank is therefore
helping to reinforce Eesti Pank's ability to safeguard financial
stability in Estonia," the Governor of the Riksbank, Stefan
Ingves, said.

Eastern Europe economies face the challenges of a dearth of
international liquidity, exposure to vulnerable banks,
and collapsing export markets, according to the World Bank.

"The impact will now be felt strongly in the real economy as
defaults spread and foreclosures creep up, and as unemployment
rises sharply," Indermit Gill, World Bank Europe and Central Asia
Chief Economist, said.

Bloomberg News relates rising overdue loans have increased
investor concerns about worsening profitability for Stockholm-
based Swedbank AB and SEB AB, the two biggest lenders in Estonia.

Estonian overdue loans as a share of total credit rose to 3.6
percent in January, the report says citing central bank data.

The country's US$21.3-billion economy contracted an annual 9.4
percent in the fourth quarter, the report notes.


===========
F R A N C E
===========


HOUSE OF EUROPE I: Fitch Junks Ratings on Two Classes of Notes
--------------------------------------------------------------
Fitch Ratings has downgraded two and affirmed three classes of
House of Europe Funding I, Ltd. and removed the class A notes from
Rating Watch Negative, as detailed below:

  -- EUR745,005,458 class A due 2015 (ISIN XS0220241086):
     downgraded to 'CCC' from 'B'; removed from RWN

  -- EUR65,000,000 class B due 2047 (ISIN XS0220241755):
     downgraded to 'CC' from 'CCC'

  -- EUR50,000,000 class C due 2047 (ISIN XS0220242134): affirmed
     at 'C'

  -- EUR50,000,000 class C additional interest (interest only):
     affirmed at 'C'

  -- EUR5,000,000 certificates due 2047: affirmed at 'AAA';
     maintain Stable Outlook

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.  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.

As per the trustee report dated January 21, 2009, all
overcollateralization tests are failing.  This is due to the
deterioration of the portfolio credit quality.  Two assets
totaling EUR50 million have recently been written-off while
another four assets totaling EUR42.5 million have a rating of
'CCC' or below for which Fitch expects little principal
recoveries.  The senior OC test, which covers the class A and B
notes, was reported at 95.9% relative to a minimum threshold of
104.75%.  The failure of the OC tests means that the proceeds
available after payment of class A and B interest are used to
redeem the notes in order of seniority.  As a result, the class C
notes are not likely to receive any future payments.

The portfolio contains 77 assets from 67 obligors, with the
largest exposure accounting for approximately 6.4% of the
outstanding portfolio amount, and the three largest obligors
accounting for 17.3% of the outstanding portfolio amount.  The
largest single industry is RMBS with 49% of the portfolio volume.

In conducting its analysis, Fitch makes a three notch downward
adjustment for any names on RWN for default analysis under its
Portfolio Credit Model.  On an adjusted basis, approximately 9% of
the portfolio is now treated as sub-investment grade.  The
weighted average portfolio quality is 'BBB' and 12.8% of the
portfolio is on RWN.  Four assets making up 6% of the portfolio
are currently rated 'CCC+' and below on an unadjusted basis.
These four assets are either synthetic CDO of investment grade
corporates with exposure to recently defaulted financial
institutions or structured finance CDOs exposed to US sub-prime
debt.

The 'CCC' rating for class A reflects the risk that further
portfolio deterioration and negative excess spread may impact
principal repayment at maturity.  Nevertheless, Fitch expects very
high recoveries for this class given that it is already
amortizing.  The class B and C notes are currently under-
collateralized and should have no principal recoveries when the
transaction matures.  Class B will still receive timely interest
payments while interest and principal proceeds are available.  The
rating of the certificates addresses the ultimate repayment of
principal only by the stated maturity date.  The rating of the
certificates is based on full principal protection provided by a
zero coupon 'AAA'-rated French government bond.

HOE 1 is an arbitrage cash flow collateralized debt obligation
incorporated to issue EUR1 billion of notes.  The proceeds of the
issuance are invested in a portfolio of European RMBS, CMBS, ABS
and CDOs.


HOUSE OF EUROPE II: Fitch Junks Ratings on Two Classes of Notes
---------------------------------------------------------------
Fitch Ratings has downgraded two and affirmed three classes of
House of Europe Funding II, PLC and removed the class A and B
notes from Rating Watch Negative, as detailed below:

  -- EUR856.15 million class A (ISIN XS0189751810): downgraded to
     'CCC' from 'BBB'; removed from RWN

  -- EUR60 million class B (ISIN XS0189774432): downgraded to 'CC'
     from 'B'; removed from RWN

  -- EUR57 million class C (ISIN XS0189774788): affirmed at 'C'

  -- EUR8 million class D (ISIN XS0189775082): affirmed at 'C'

  -- EUR5 million class E (ISIN XS0189775595): affirmed at 'AAA';
     maintain Stable Outlook

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 that has
occurred since the last review.  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.

As per the trustee report dated January 26, 2009, all
overcollateralization tests are failing.  This is due to the
deterioration of the portfolio credit quality.  Two assets
totaling EUR28 million have recently been written-off while
another fifteen assets totaling EUR120.05 million have a rating of
'CCC' or below.  While most of these assets are still paying
interest, the majority are expected to have no principal
recoveries.  The senior OC test, which covers the class A and B
notes, was reported at 92.6% relative to a minimum threshold of
104%.  The failure of the OC tests means that the proceeds
available after payment of classes A and B interest are used to
redeem the notes in order of seniority.  As a result, the class C,
D and E notes are cut off from any future interest payments.

The portfolio contains 113 assets from 94 obligors, with the
largest exposure accounting for approximately 3% of the
outstanding portfolio amount, and the three largest obligors
accounting for 8.5% of the outstanding portfolio amount.  The
largest single industry is CMBS with 42% of the portfolio volume.

In conducting its analysis, Fitch makes a three notch downward
adjustment for any names on RWN for default analysis under its
Portfolio Credit Model.  On an adjusted basis, approximately 16.2%
of the portfolio is now treated as sub-investment grade.  The
weighted average portfolio quality is 'BB+' and 15.3% of the
portfolio is on RWN.  Thirteen assets making up 11.1% of the
portfolio are currently rated 'CCC+' and below on an unadjusted
basis, all of which are either synthetic CDO of investment grade
corporates or structured finance CDOs exposed to US sub-prime
debt.

The 'CCC' rating for class A reflects the risk that further
portfolio deterioration and negative excess spread may impact
principal repayment at maturity.  Nevertheless, Fitch still
expects very high recoveries for this class given that it is
already amortizing.  The class B is currently under-collateralized
and should have no principal recoveries when the transaction
matures.  Class B will still receive timely interest payments
while interest and principal proceeds are available.  Classes C
and D are currently under-collateralized and cut off from any
further interest and principal payments, but both classes benefit
from partial principal protection at maturity (EUR1 million each),
provided by a zero coupon 'AAA'-rated French government bond.

The rating of the class E notes addresses the ultimate repayment
of principal only by the stated maturity date.  The rating of
class E is based on full principal protection provided by a zero
coupon 'AAA'-rated French government bond.

HOE 2 is an arbitrage cash flow collateralized debt obligation
incorporated to issue EUR1 billion of notes.  The proceeds of the
issuance are invested in a portfolio of European RMBS, CMBS, ABS
and CDOs.


HOUSE OF EUROPE III: Fitch Cuts Rating on Class A Notes to 'CCC'
----------------------------------------------------------------
Fitch Ratings has downgraded two and affirmed three classes of
House of Europe Funding III, PLC and removed the class A notes
from Rating Watch Negative, as detailed below:

  -- EUR815.3 million class A (ISIN XS0202218284): downgraded to
     'CCC' from 'BB'; removed from RWN

  -- EUR60 million class B (ISIN XS0202219092): downgraded to 'CC'
     from 'CCC'

  -- EUR57.5 million class C (ISIN XS0202219415): affirmed at 'C'

  -- EUR7.5 million class D (ISIN XS0202221072): affirmed at 'C'

  -- EUR5 million class E (ISIN XS0202221155): affirmed at 'AAA';
     maintain Stable Outlook

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 that has
occurred since the last review.  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.

As per the trustee report dated January 20, 2009, all
overcollateralization tests are failing.  This is due to the
deterioration of the portfolio credit quality.  Two assets
totaling EUR40 million have recently been written-off while
another eleven assets totaling EUR82.5 million have a rating of
'CCC' or below.  While most of these assets are still paying
interest, the majority are expected to have no principal
recoveries.  The senior OC test, which covers the class A and B
notes, was reported at 93.17% relative to a minimum threshold of
104%.  The failure of the OC tests means that the proceeds
available after payment of class A and B interest are being used
to redeem the notes in order of seniority.  As a result, the class
C, D and E notes are cut off from any future interest payments.

The portfolio contains 119 assets from 100 obligors, with the
largest exposure accounting for approximately 3.3% of the
outstanding portfolio amount, and the three largest obligors
accounting for 9% of the outstanding portfolio amount. The largest
single industry is RMBS with 48% of the portfolio volume.

In conducting its analysis, Fitch makes a three notch downward
adjustment for any names on RWN for default analysis under its
Portfolio Credit Model.  On an adjusted basis, approximately 13%
of the portfolio is now treated as sub-investment grade.  The
weighted average portfolio quality is 'BB+' and 13.1% of the
portfolio is on RWN.  Eight assets making up 6.7% of the portfolio
are currently rated 'CCC+' and below on an unadjusted basis, all
of which are either synthetic CDO of investment grade corporates
or structured finance CDOs exposed to US sub-prime debt.

The 'CCC' rating for class A reflects the risk that further
portfolio deterioration and negative excess spread may impact
principal repayment at maturity.  Nevertheless, Fitch still
expects very high recoveries for this class given that it is
already amortizing.  The class B is currently under-collateralized
and should have no principal recoveries when the transaction
matures.  Class B will still receive timely interest payments
while interest and principal proceeds are available.  Classes C
and D are currently under-collateralized and cut off from any
further interest and principal payments.

The rating of the class E notes addresses the ultimate repayment
of principal only by the stated maturity date.  The rating of
class E is based on full principal protection provided by a zero
coupon 'AAA'-rated French government bond.

HOE 3 is an arbitrage cash flow collateralized debt obligation
incorporated to issue EUR1 billion of notes.  The proceeds of the
issuance are invested in a portfolio of European RMBS, CMBS, ABS
and CDOs.


HOUSE OF EUROPE IV: Fitch Junks Ratings on Three Classes of Notes
-----------------------------------------------------------------
Fitch Ratings has downgraded four and affirmed two classes of
House of Europe Funding IV, PLC and removed the Rating Watch
Negative from four classes, as detailed below:

  -- EUR688.4 million class A1 (ISIN XS0228470588): downgraded to
     'BBB' from 'AA'; removed from RWN; assigned Stable Outlook

  -- EUR130 million class A2 (ISIN XS0228472873): downgraded to
     'CCC' from 'BBB'; removed from RWN

  -- EUR62.5 million class B (ISIN XS0228474572): downgraded to
     'CC' from 'B'; removed from RWN

  -- EUR5 million class C (ISIN XS0228475389): downgraded to 'CC'
     from 'B'; removed from RWN

  -- EUR49 million class D (ISIN XS0228476197): affirmed at 'C'

  -- EUR7.56 million class E (ISIN XS0228476601): affirmed at
     'CCC'

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 that has
occurred since the last review.  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.

As per the trustee report dated January 15, 2009, all
overcollateralization tests are failing.  This is due to the
deterioration of the portfolio credit quality.  Three assets
totaling EUR23.8 million have recently been written-off while
another twelve assets totaling EUR98 million have a rating of CCC
or below.  While most of these assets are still paying interest
the majority are expected to have no principal recoveries.  The
senior OC test, which covers the class A, B and C notes, was
reported at 93.7% relative to a minimum threshold of 104%.  The
failure of the OC tests means that the principal proceeds
available after payment of certain senior expenses are being used
to redeem the notes in order of seniority.  As a result, the class
D and E notes are cut off from any future interest payments.

The portfolio contains 117 assets from 99 obligors, with the
largest exposure accounting for approximately 3.3% of the
outstanding portfolio amount, and the three largest obligors
accounting for 9.9% of the outstanding portfolio amount.  The
largest single industry is RMBS with 38% of the portfolio volume.

In conducting its analysis, Fitch makes a three notch downward
adjustment for any names on RWN for default analysis under its
Portfolio Credit Model.  On an adjusted basis approximately 11.8%
of the portfolio is now treated as sub-investment grade.  The
weighted average portfolio quality is 'BB+' and 7.3% of the
portfolio is on RWN.  Twelve assets making up 10.7% of the
portfolio are currently rated 'CCC+' and below on an unadjusted
basis, all of which are either synthetic CDO of investment grade
corporates or structured finance CDOs exposed to US sub-prime
debt.

Class A1 in HoE 4 benefits from a higher structural subordination
than previous HoE deals and therefore can withstand considerably
higher portfolio deterioration levels before incurring principal
losses.  The 'BBB' rating for class A1 reflects the credit
enhancement of 16% on an adjusted portfolio balance of EUR817.2
million (after deducting approximately EUR98 million of distressed
assets mentioned above).  Going forward, Fitch expects the
portfolio will not produce sufficient interest proceeds to pay the
notes, and as result principal proceeds will be used to pay
interest to the notes.  This negative excess spread will partially
erode current credit enhancement levels.  However, Fitch cash-flow
modelling simulations have accounted for this risk which is
factored into the 'BBB' rating assigned to the class A1 notes.

The 'CCC' rating for class A2 notes reflects the risk that further
portfolio deterioration and negative excess spread will likely
impact ultimate principal recovery.  Nevertheless, Fitch still
expects high recoveries for this class given the credit quality of
the performing portfolio.  Classes B and C are currently under-
collateralized and should have no principal recoveries when the
transaction matures.  Classes B and C will still receive timely
interest payments while interest and principal proceeds are
available.  Classes D and E are currently under-collateralized and
cut off from any further interest and principal payments.

The ratings of the class A1, A2, B and C notes address the timely
payment of interest and the ultimate repayment of principal by the
stated maturity date as per the governing documents.  The ratings
on the class D and E notes address the ultimate return of the
rated principal balance by the stated maturity as per the
governing documents.  Currently, the class D rated notional stands
at EUR44.2 million and the class E rated notional is EUR6.67
million.  The class E notes benefit from partial protection from a
zero-coupon 'AAA' French government bond (ISIN: FR0010172205)
maturing in 2055 with a par balance of EUR6.35 million.

HoE 4 is an arbitrage cash flow collateralized debt obligation
incorporated to issue EUR1 billion of notes.  The proceeds of the
issuance are invested in a portfolio of European and US RMBS,
CMBS, ABS and CDOs.


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


ABS WOHNBAU: Claims Registration Period Ends March 27
-----------------------------------------------------
Creditors of ABS Wohnbau GmbH have until March 27, 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 27, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Landau in der Pfalz
         Room 223
         Marienring 13
         76829 Landau in der Pfalz
         Germany

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

The insolvency manager can be reached at:

         Stephan Haspel
         Xylanderstr. 3
         76829 Landau in der Pfalz
         Germany
         Tel: 06341 – 51020
         Fax: 06341-510229

The District Court opened bankruptcy proceedings against the
company on Feb. 19, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         ABS Wohnbau GmbH
         Attn: Roland Unselt and
               Martin Fritz, Managers
         Annweilerstr. 15
         76829 Landau in der Pfalz
         Germany


DATASTREET PROJECTS: Claims Registration Period Ends April 1
------------------------------------------------------------
Creditors of DATAstreet Projects GmbH have until April 1, 2009, to
register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on April 20, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Aachen
         Room D 1.409
         Adalbertsteinweg 92
         52070 Aachen
         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:

         Frank Wiedemann
         Eupener St. 181
         52066 Aachen
         Germany
         Tel: 0241/6052800
         Fax: 0241/6052799

The District Court opened bankruptcy proceedings against the
company on Feb. 16, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         DATAstreet Projects GmbH
         An der Waldschanke 31
         52538 Selfkant
         Germany

         Attn: Peter Matheus Robert Maria Bax
         An der Waldschanke 31
         52538 Gangelt
         Germany


DRESDNER BANK: Moody's Cuts Bank Financial Strength Rating to 'E+'
------------------------------------------------------------------
Moody's Investors Service has downgraded the bank financial
strength ratings of Commerzbank AG and of Commerzbank Europe
(Ireland) to C- from C, of Dresdner Bank AG to E+ from C- and of
Eurohypo AG to D from C.  The outlook on Commerzbank's C- BFSR and
on Eurohypo's D BFSR remains negative.  Dresdner bank's E+ BFSR
now carries a stable outlook, reflecting Moody's expectation of no
further rating action until completion of Dresdner Bank's merger
with its parent bank, Commerzbank AG, in Q2 2009.  At the same
time, Moody's downgraded various hybrid instruments of different
Commerzbank group entities as detailed further below.

Moody's affirmed the Aa3 ratings for senior unsecured debt and
deposits and the A1 ratings for subordinated debt of Commerzbank
AG, Commerzbank Europe (Ireland) and Dresdner Bank AG, but the
outlook on these ratings was changed to negative from stable.  The
A1 senior unsecured debt and deposit ratings of Eurohypo and the
A2 rating for its subordinated debt were also affirmed with a
change of the outlook to negative.  The Prime-1 ratings for short-
term liabilities of all entities mentioned above remained
unaffected by the rating action.

Triggered by the downgrade of Commerzbank's BFSR to C-, the
ratings for long-term deposits of BRE Bank S.A., Poland, and BRE
Finance France S.A. were downgraded to A3 from A2.  The outlook on
these ratings remains negative, and the short-term rating of BRE
Bank S.A. was downgraded to Prime-2 from Prime-1.  The downgrade
of Commerzbank's BFSR also triggered the downgrade of BRE Bank
Hipoteczny's long-term deposit rating to Baa3 from Baa1 with a
stable outlook, and the short-term rating to Prime-3 from Prime-2.

The rating actions reflect Moody's expectations of ongoing
weaknesses of several subsidiary operations, in particular
relating to exposure to commercial real estate and public sector
finance, the impact of investment banking restructuring and
possible further losses on troubled assets, while systemic support
and intra-group support is expected to remain high.

          Downgrade of BFSR Ratings Due to Weaknesses in
                    Subsidiaries' Operations

The downgrade of Dresdner Bank's BFSR to E+, which translates into
a Baseline Credit Assessment of B2, was triggered by substantial
losses reported last week for the financial year 2008.  Although
the EUR6.3 billion loss included major one-off items which were
partly attributable to necessary write-downs of tax credits and
other charges relating to the planned merger with Commerzbank, the
loss still reflected a far higher-than-expected vulnerability of
Dresdner's investment banking operations, in particular due to
high exposure to market risk.  The E+ BFSR level reflects the
rapid erosion of the bank's economic and regulatory
capitalization, chiefly the reported Tier-1 ratio at the
regulatory threshold level of 4% at the end of December 2008;
however, the rating also factors in the recapitalization measures
planned for Q1 2009 which are expected to bring the ratio up to
4.8%.  The rating further includes elements of recognition for
Dresdner's still-profitable segment of Private & Corporate Clients
which Moody's believes should add value to the Commerzbank Group
in the medium term.

The downgrade of Eurohypo's BFSR to D, which translates into a BCA
of Ba2, mainly reflects three weaknesses: (i) the bank's failure
to post a profit in any of its three business segments in 2008,
(ii) the franchise impairment of its public sector finance
business due to unsustainable funding costs which, in the absence
of any viable strategy for a restoration, can only be scaled down
in order to gradually reduce future losses, and (iii) expected
higher risk provisions in the bank's commercial real estate
business which may lead to limited, if not negative contributions
from this business over the next two to three years.

The downgrade of Commerzbank's BFSR by one notch to C-, which
translates into a BCA of Baa1, solely reflects the financial
weakness of and negative outlook for Dresdner Bank and Eurohypo.
"The financial strength of Commerzbank group is a mixed picture of
a very healthy core business of the parent bank on the one hand,
in particular its stable segments of Private and Business Clients
and its corporate banking franchise (Mittelstand), and, on the
other hand, the deteriorated, partly impaired franchises of
Dresdner Bank and Eurohypo", said Katharina Barten, a Frankfurt-
based Moody's Vice President and lead analyst for Commerzbank
Group.  "The negative rating pressure from its subsidiaries,
however, remains strongly mitigated by the recapitalization
measures from the German Government announced in January 2009,
which -- in spite of the eroded capital base of Dresdner -- should
result in a pro-forma Tier-I ratio for the "new Commerzbank group"
in excess of 10%, equipping it with major loss absorption capacity
for the expected highly difficult two years ahead."

       Senior Debt Ratings Benefit from Systemic Support and
                       Intra-Group Support

Despite the downgrade of Commerzbank's BFSR by one notch, the Aa3
senior unsecured debt and deposit ratings of the bank -- and
therefore its subsidiary Dresdner -- were affirmed.  These ratings
of the combined entity (pre-emptive of the forthcoming merger)
remain strongly underpinned by Moody's expectations of high
systemic support going forward.  The Aa3 rating recognises both
the systemic support rendered to date, which in Moody's view
reflects a high readiness of the German government to equip the
country's second-largest banking group with additional means to
withstand the economic downturn ahead at an early stage, and also
the bank's rising importance as a lender to the German economy,
which underscores Commerzbank group's systemic importance in the
long term.

In spite of the multi-notch downgrade of Eurohypo's BFSR to D, its
A1 senior unsecured debt and deposit ratings also remain
unchanged, reflecting the very high parental support, which is
underpinned by a strong letter of support from Commerzbank AG and
a profit & loss transfer agreement, which obliges Commerzbank to
absorb any losses of Eurohypo (based on local GAAP accounting)
until at least mid-2012.  Based on these arrangements the ratings
will remain one notch below those of the parent bank.

        The Negative Outlook Reflects Integration Risk and
                Low Visibility of Future Earnings

In view of the high-risk profile of Dresdner Bank, the task of
integration ahead for Commerzbank will be challenging.  The
success of the necessary de-risking exercise will largely hinge on
achievements of a major targeted downsizing exercise for non-core
and unprofitable assets, which will require a somewhat more
favourable market environment.  Accordingly, the negative outlook
on the senior unsecured ratings reflects the uncertain
profitability outlook for Commerzbank group during the next two to
three years against the currently persistent hostile market
environment and a potentially prolonged economic downturn.  That
said, a capital cushion estimated at around EUR6.8 billion should,
in Moody's opinion, protect the group Tier-I ratio from moving
below the 8% threshold, which equally provides for protection of
Commerzbank's ratings at the current level.

            Downgrade of Hybrid Instruments Concluding
       Moody's Ratings Review Initiated on February 17, 2009

1) The Tier-I instruments issued by Commerzbank Capital Funding
   Trust I, II and III were downgraded to Ba3 from A2, reflecting
   Moody's expectation of a low probability of a missed coupon in
   2009 and a high probability of a missed coupon in 2010.  All
   instruments have distributable profits (balance sheet) coupon
   non-payment triggers and are non-cumulative.  Moody's
   recognizes that substantial reserves are available on the non-
   consolidated balance sheet of Commerzbank AG (in excess of
   EUR6.5 billion) which offer a buffer to trigger breaches;
   however, total estimated losses over the next two years and the
   additional obligation to pay EUR1.5 billion p.a. in coupons on
   the new hybrids from the German Government could lead to a
   rapid depletion of these reserves.

2) Commerzbank's deeply subordinated upper Tier-II instruments
    ("Genussscheine") which mature in December 2009 were
   downgraded to Ba1 from A1 and those which mature in December
   2010 to Ba3 from A1.  The Ba1 ratings reflect Moody's estimate
   of a small probability of a (partial) loss on the final coupon
   and a moderate probability of a principal write-down for the
   year 2009.  The Ba3 ratings reflect the additional risk of a
   higher probability of potential losses for the financial year
   2010.  Although these instruments are cumulative, the
   relatively short time-to-maturity does not allow much time for
   the principal to be written back, thus exposing investors to
   losses.

3) The non-cumulative Tier-I hybrid instruments ("dated silent
   partnership certificates") issued by Dresdner Funding Trust I,
   II, III and IV were downgraded to A3 from A2, reflecting (i)
   their very weak coupon non-payment triggers, (ii) Moody's
   understanding that the 4% and 8% regulatory capitalization
   triggers were not breached in 2008 (Dresdner reported a Tier-1
   ratio of 4%), and (iii) the rating agency's expectation that
   these triggers are highly unlikely to be breached in the
   foreseeable future for these perpetual instruments.  It must be
   noted that following the planned merger of Dresdner Bank with
   Commerzbank in Q2 2009, the regulatory capital ratios of
   Commerzbank will be the reference for these instruments, which
   further decreases the probability that the triggers will be
   breached.  The downgrade by one notch was thus not based on an
   expected-loss calculation, but on a wider notching of three
   rather than two from the senior unsecured debt rating of
   Commerzbank, which is in line with Moody's notching guidelines
   for banks with weaker BFSRs.

4) The Tier-I instruments issued by HT1 Funding Trust GmbH which
   represent a "repacked silent participation" in Dresdner Bank
   AG, were downgraded to Ba2 from A2 reflecting (i) the
   occurrence of a trigger breach in 2008 (both the 9% total
   capital ratio trigger and the distributable profits (balance
   sheet) coupon non-payment triggers were breached) and the
   resulting partial loss of the coupon and principal write-down
   for 2008, which Moody's estimates to be in the range of 10% to
   20%, (ii) Moody's expectation that the principal will be
   written back on a five-year time horizon since the security has
   a perpetual maturity, and (iii) that the coupon payment for
   2008 is expected to be made in the range of 80% - 90% thanks to
   the indemnity of Allianz to pay coupons on the (remaining)
   principal amount.  Moody's understands that Allianz' obligation
   to pay coupons on these instruments when coupon non-payment
   triggers are breached will continue even after the merger of
   Dresdner Bank with Commerzbank and will remain in place for the
   life of these instruments.  However, as typical for Tier-I
   instruments, the coupon payments are non-cumulative, and
   therefore those parts of coupons that are not paid
   (corresponding to the portion of the principal written down)
   will be lost and not subject to payment at a later date.

5) The dated upper Tier-II securities issued by UT2 Funding plc,
   Ireland, which represent a "repackaged silent participation" in
   Dresdner Bank, were downgraded to Ba2 from A1, reflecting (i)
   the occurrence of a trigger breach in 2008 and the resulting
   deferral of one coupon and principal write-down for 2008, which
   Moody's expects to be in the range of 10% to 20%, (ii) a rising
   probability of a further coupon deferrals in 2009 and 2010
   along with principal write-downs, in line with Moody's
   expectations for the Commerzbank Genussscheine, and (ii) the
   expectation that the principal will be written back and the
   coupons paid retroactively before maturity in 2016 thanks to
   the cumulative feature of these instruments.

6) The Tier-I instruments ("dated silent partnership
   certificates") issued by Eurohypo Capital Funding Trust I and
   II were downgraded to B2 from A3, reflecting a high probability
   of a depletion of reserves on the unconsolidated balance sheet
   of Eurohypo (which are considerably lower than those of
   Commerzbank) and resulting likely trigger breaches which may
   result in the loss of one or more coupons on a five-year
   horizon.  Moody's applied high probability to the loss of one
   coupon and a medium probability to a loss of a second.  As
   coupon payments are non-cumulative, they would not be subject
   to payment at a later date.

7) The upper tier-II instruments issued by Hypothekenbank in
   Essen, which was merged onto Eurohypo in Q3 2008, to Ba1 from
   A2, as these instruments will mature in 2009 and 2013
   respectively, which for the former means that there is a modest
   probability of a (final) coupon loss and principal write-down
   before maturity and for the latter that the instrument,
   although exposed to a high risk of both coupon deferrals and
   principal write-downs in 2010, all such losses would likely be
   written back and retroactively paid before maturity in 2013.

The outlook on the instruments 1, 2 and 4 to 7 whereby ratings are
based on an expected loss calculation is stable.  The outlook on
the instruments notched down from the senior unsecured debt rating
of Commerzbank (Aa3 negative) carry a negative outlook, applying
to the instruments listed under 3.

The last rating action on Commerzbank was on February 17, 2009,
when Moody's placed on review for possible downgrade the ratings
of all the group's hybrid instruments.

Domiciled in Frankfurt, Germany, Commerzbank reported, based on
preliminary financials, total assets of EUR625 billion as at
December 31, 2008 and a pre-tax loss for the year of EUR403
million.

Domiciled in Frankfurt, Germany, Dresdner Bank AG is a fully owned
subsidiary of Commerzbank. Based on preliminary results for 2008,
Dresdner Bank reported a pre-tax loss of EUR4.7 billion.

Headquartered in Eschborn, Germany, Eurohypo is a fully owned
subsidiary of Commerzbank.  Based on preliminary results for 2008,
Eurohypo reported total assets of EUR292 billion and a pre-tax
loss of EUR1.4 billion.


ELEMENT UND MASSIVBAU: Claims Registration Period Ends March 27
---------------------------------------------------------------
Creditors of Element und Massivbau GmbH have until March 27, 2009,
to register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9:05 a.m. on April 22, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Wuppertal
         Meeting Room A234
         Second Floor
         Isle 2
         42103 Wuppertal
         Germany

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

The insolvency manager can be reached at:

         Dr. Rainer Maus
         Turmhof 15
         42103 Wuppertal
         Germany
         Tel: 0202/49 37 00
         Fax: 0202/4937099

The District Court opened bankruptcy proceedings against the
company on Feb. 18, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         Element und Massivbau GmbH
         Osterholzer Strasse 124
         42781 Haan
         Germany

         Attn: Laurentius Schillings, Manager
         Eichstr. 15
         42349 Wuppertal
         Germany


EUROHYPO AG: Moody's Cuts Bank Financial Strength Rating to 'D'
---------------------------------------------------------------
Moody's Investors Service has downgraded the bank financial
strength ratings of Commerzbank AG and of Commerzbank Europe
(Ireland) to C- from C, of Dresdner Bank AG to E+ from C- and of
Eurohypo AG to D from C.  The outlook on Commerzbank's C- BFSR and
on Eurohypo's D BFSR remains negative.  Dresdner bank's E+ BFSR
now carries a stable outlook, reflecting Moody's expectation of no
further rating action until completion of Dresdner Bank's merger
with its parent bank, Commerzbank AG, in Q2 2009.  At the same
time, Moody's downgraded various hybrid instruments of different
Commerzbank group entities as detailed further below.

Moody's affirmed the Aa3 ratings for senior unsecured debt and
deposits and the A1 ratings for subordinated debt of Commerzbank
AG, Commerzbank Europe (Ireland) and Dresdner Bank AG, but the
outlook on these ratings was changed to negative from stable.  The
A1 senior unsecured debt and deposit ratings of Eurohypo and the
A2 rating for its subordinated debt were also affirmed with a
change of the outlook to negative.  The Prime-1 ratings for short-
term liabilities of all entities mentioned above remained
unaffected by the rating action.

Triggered by the downgrade of Commerzbank's BFSR to C-, the
ratings for long-term deposits of BRE Bank S.A., Poland, and BRE
Finance France S.A. were downgraded to A3 from A2.  The outlook on
these ratings remains negative, and the short-term rating of BRE
Bank S.A. was downgraded to Prime-2 from Prime-1.  The downgrade
of Commerzbank's BFSR also triggered the downgrade of BRE Bank
Hipoteczny's long-term deposit rating to Baa3 from Baa1 with a
stable outlook, and the short-term rating to Prime-3 from Prime-2.

The rating actions reflect Moody's expectations of ongoing
weaknesses of several subsidiary operations, in particular
relating to exposure to commercial real estate and public sector
finance, the impact of investment banking restructuring and
possible further losses on troubled assets, while systemic support
and intra-group support is expected to remain high.

          Downgrade of BFSR Ratings Due to Weaknesses in
                    Subsidiaries' Operations

The downgrade of Dresdner Bank's BFSR to E+, which translates into
a Baseline Credit Assessment of B2, was triggered by substantial
losses reported last week for the financial year 2008.  Although
the EUR6.3 billion loss included major one-off items which were
partly attributable to necessary write-downs of tax credits and
other charges relating to the planned merger with Commerzbank, the
loss still reflected a far higher-than-expected vulnerability of
Dresdner's investment banking operations, in particular due to
high exposure to market risk.  The E+ BFSR level reflects the
rapid erosion of the bank's economic and regulatory
capitalization, chiefly the reported Tier-1 ratio at the
regulatory threshold level of 4% at the end of December 2008;
however, the rating also factors in the recapitalization measures
planned for Q1 2009 which are expected to bring the ratio up to
4.8%.  The rating further includes elements of recognition for
Dresdner's still-profitable segment of Private & Corporate Clients
which Moody's believes should add value to the Commerzbank Group
in the medium term.

The downgrade of Eurohypo's BFSR to D, which translates into a BCA
of Ba2, mainly reflects three weaknesses: (i) the bank's failure
to post a profit in any of its three business segments in 2008,
(ii) the franchise impairment of its public sector finance
business due to unsustainable funding costs which, in the absence
of any viable strategy for a restoration, can only be scaled down
in order to gradually reduce future losses, and (iii) expected
higher risk provisions in the bank's commercial real estate
business which may lead to limited, if not negative contributions
from this business over the next two to three years.

The downgrade of Commerzbank's BFSR by one notch to C-, which
translates into a BCA of Baa1, solely reflects the financial
weakness of and negative outlook for Dresdner Bank and Eurohypo.
"The financial strength of Commerzbank group is a mixed picture of
a very healthy core business of the parent bank on the one hand,
in particular its stable segments of Private and Business Clients
and its corporate banking franchise (Mittelstand), and, on the
other hand, the deteriorated, partly impaired franchises of
Dresdner Bank and Eurohypo", said Katharina Barten, a Frankfurt-
based Moody's Vice President and lead analyst for Commerzbank
Group.  "The negative rating pressure from its subsidiaries,
however, remains strongly mitigated by the recapitalization
measures from the German Government announced in January 2009,
which -- in spite of the eroded capital base of Dresdner -- should
result in a pro-forma Tier-I ratio for the "new Commerzbank group"
in excess of 10%, equipping it with major loss absorption capacity
for the expected highly difficult two years ahead."

       Senior Debt Ratings Benefit from Systemic Support and
                       Intra-Group Support

Despite the downgrade of Commerzbank's BFSR by one notch, the Aa3
senior unsecured debt and deposit ratings of the bank -- and
therefore its subsidiary Dresdner -- were affirmed.  These ratings
of the combined entity (pre-emptive of the forthcoming merger)
remain strongly underpinned by Moody's expectations of high
systemic support going forward.  The Aa3 rating recognises both
the systemic support rendered to date, which in Moody's view
reflects a high readiness of the German government to equip the
country's second-largest banking group with additional means to
withstand the economic downturn ahead at an early stage, and also
the bank's rising importance as a lender to the German economy,
which underscores Commerzbank group's systemic importance in the
long term.

In spite of the multi-notch downgrade of Eurohypo's BFSR to D, its
A1 senior unsecured debt and deposit ratings also remain
unchanged, reflecting the very high parental support, which is
underpinned by a strong letter of support from Commerzbank AG and
a profit & loss transfer agreement, which obliges Commerzbank to
absorb any losses of Eurohypo (based on local GAAP accounting)
until at least mid-2012.  Based on these arrangements the ratings
will remain one notch below those of the parent bank.

        The Negative Outlook Reflects Integration Risk and
                Low Visibility of Future Earnings

In view of the high-risk profile of Dresdner Bank, the task of
integration ahead for Commerzbank will be challenging.  The
success of the necessary de-risking exercise will largely hinge on
achievements of a major targeted downsizing exercise for non-core
and unprofitable assets, which will require a somewhat more
favourable market environment.  Accordingly, the negative outlook
on the senior unsecured ratings reflects the uncertain
profitability outlook for Commerzbank group during the next two to
three years against the currently persistent hostile market
environment and a potentially prolonged economic downturn.  That
said, a capital cushion estimated at around EUR6.8 billion should,
in Moody's opinion, protect the group Tier-I ratio from moving
below the 8% threshold, which equally provides for protection of
Commerzbank's ratings at the current level.

            Downgrade of Hybrid Instruments Concluding
       Moody's Ratings Review Initiated on February 17, 2009

1) The Tier-I instruments issued by Commerzbank Capital Funding
   Trust I, II and III were downgraded to Ba3 from A2, reflecting
   Moody's expectation of a low probability of a missed coupon in
   2009 and a high probability of a missed coupon in 2010.  All
   instruments have distributable profits (balance sheet) coupon
   non-payment triggers and are non-cumulative.  Moody's
   recognizes that substantial reserves are available on the non-
   consolidated balance sheet of Commerzbank AG (in excess of
   EUR6.5 billion) which offer a buffer to trigger breaches;
   however, total estimated losses over the next two years and the
   additional obligation to pay EUR1.5 billion p.a. in coupons on
   the new hybrids from the German Government could lead to a
   rapid depletion of these reserves.

2) Commerzbank's deeply subordinated upper Tier-II instruments
    ("Genussscheine") which mature in December 2009 were
   downgraded to Ba1 from A1 and those which mature in December
   2010 to Ba3 from A1.  The Ba1 ratings reflect Moody's estimate
   of a small probability of a (partial) loss on the final coupon
   and a moderate probability of a principal write-down for the
   year 2009.  The Ba3 ratings reflect the additional risk of a
   higher probability of potential losses for the financial year
   2010.  Although these instruments are cumulative, the
   relatively short time-to-maturity does not allow much time for
   the principal to be written back, thus exposing investors to
   losses.

3) The non-cumulative Tier-I hybrid instruments ("dated silent
   partnership certificates") issued by Dresdner Funding Trust I,
   II, III and IV were downgraded to A3 from A2, reflecting (i)
   their very weak coupon non-payment triggers, (ii) Moody's
   understanding that the 4% and 8% regulatory capitalization
   triggers were not breached in 2008 (Dresdner reported a Tier-1
   ratio of 4%), and (iii) the rating agency's expectation that
   these triggers are highly unlikely to be breached in the
   foreseeable future for these perpetual instruments.  It must be
   noted that following the planned merger of Dresdner Bank with
   Commerzbank in Q2 2009, the regulatory capital ratios of
   Commerzbank will be the reference for these instruments, which
   further decreases the probability that the triggers will be
   breached.  The downgrade by one notch was thus not based on an
   expected-loss calculation, but on a wider notching of three
   rather than two from the senior unsecured debt rating of
   Commerzbank, which is in line with Moody's notching guidelines
   for banks with weaker BFSRs.

4) The Tier-I instruments issued by HT1 Funding Trust GmbH which
   represent a "repacked silent participation" in Dresdner Bank
   AG, were downgraded to Ba2 from A2 reflecting (i) the
   occurrence of a trigger breach in 2008 (both the 9% total
   capital ratio trigger and the distributable profits (balance
   sheet) coupon non-payment triggers were breached) and the
   resulting partial loss of the coupon and principal write-down
   for 2008, which Moody's estimates to be in the range of 10% to
   20%, (ii) Moody's expectation that the principal will be
   written back on a five-year time horizon since the security has
   a perpetual maturity, and (iii) that the coupon payment for
   2008 is expected to be made in the range of 80% - 90% thanks to
   the indemnity of Allianz to pay coupons on the (remaining)
   principal amount.  Moody's understands that Allianz' obligation
   to pay coupons on these instruments when coupon non-payment
   triggers are breached will continue even after the merger of
   Dresdner Bank with Commerzbank and will remain in place for the
   life of these instruments.  However, as typical for Tier-I
   instruments, the coupon payments are non-cumulative, and
   therefore those parts of coupons that are not paid
   (corresponding to the portion of the principal written down)
   will be lost and not subject to payment at a later date.

5) The dated upper Tier-II securities issued by UT2 Funding plc,
   Ireland, which represent a "repackaged silent participation" in
   Dresdner Bank, were downgraded to Ba2 from A1, reflecting (i)
   the occurrence of a trigger breach in 2008 and the resulting
   deferral of one coupon and principal write-down for 2008, which
   Moody's expects to be in the range of 10% to 20%, (ii) a rising
   probability of a further coupon deferrals in 2009 and 2010
   along with principal write-downs, in line with Moody's
   expectations for the Commerzbank Genussscheine, and (ii) the
   expectation that the principal will be written back and the
   coupons paid retroactively before maturity in 2016 thanks to
   the cumulative feature of these instruments.

6) The Tier-I instruments ("dated silent partnership
   certificates") issued by Eurohypo Capital Funding Trust I and
   II were downgraded to B2 from A3, reflecting a high probability
   of a depletion of reserves on the unconsolidated balance sheet
   of Eurohypo (which are considerably lower than those of
   Commerzbank) and resulting likely trigger breaches which may
   result in the loss of one or more coupons on a five-year
   horizon.  Moody's applied high probability to the loss of one
   coupon and a medium probability to a loss of a second.  As
   coupon payments are non-cumulative, they would not be subject
   to payment at a later date.

7) The upper tier-II instruments issued by Hypothekenbank in
   Essen, which was merged onto Eurohypo in Q3 2008, to Ba1 from
   A2, as these instruments will mature in 2009 and 2013
   respectively, which for the former means that there is a modest
   probability of a (final) coupon loss and principal write-down
   before maturity and for the latter that the instrument,
   although exposed to a high risk of both coupon deferrals and
   principal write-downs in 2010, all such losses would likely be
   written back and retroactively paid before maturity in 2013.

The outlook on the instruments 1, 2 and 4 to 7 whereby ratings are
based on an expected loss calculation is stable.  The outlook on
the instruments notched down from the senior unsecured debt rating
of Commerzbank (Aa3 negative) carry a negative outlook, applying
to the instruments listed under 3.

The last rating action on Commerzbank was on February 17, 2009,
when Moody's placed on review for possible downgrade the ratings
of all the group's hybrid instruments.

Domiciled in Frankfurt, Germany, Commerzbank reported, based on
preliminary financials, total assets of EUR625 billion as at
December 31, 2008 and a pre-tax loss for the year of EUR403
million.

Domiciled in Frankfurt, Germany, Dresdner Bank AG is a fully owned
subsidiary of Commerzbank. Based on preliminary results for 2008,
Dresdner Bank reported a pre-tax loss of EUR4.7 billion.

Headquartered in Eschborn, Germany, Eurohypo is a fully owned
subsidiary of Commerzbank.  Based on preliminary results for 2008,
Eurohypo reported total assets of EUR292 billion and a pre-tax
loss of EUR1.4 billion.


HERTIE GMBH: Court Opens Official Insolvency Proceedings
--------------------------------------------------------
Monsters and Critics reports that a court in Essen has opened
official insolvency proceedings on Hertie GmbH's debts.

Monsters and Critics relates Hertie said it will try to keep 54
branches functioning after the closure of 19 loss-making stores.

As reported by the Troubled Company Reporter-Europe, Hertie filed
for commencement of insolvency proceedings at the District Court
of Essen on July 31, 2008.  The court appointed Biner Baehr of
White & Case LLP as preliminary insolvency administrator for
Hertie.

According to Bloomberg News, Hertie filed for insolvency after its
debt-restructuring talks failed.

Hertie Warenhandels GmbH, one of Hertie's units, filed for opening
of insolvency proceedings on Aug. 1, 2008.  Mr. Baehr was also
appointed preliminary insolvency administrator for that unit.

Erik van Heuven, Hertie's chief marketing officer, told Bloomberg
News that Hertie will revive the concept of neighborhood
department-stores as part of its restructuring.

                         Loan Guarantee

On March 2, 2009, citing Reuters' Nikola Rotscheroth and Eva
Kuehnen, the Troubled Company Reporter-Europe reported that the
German state of North Rhine Westphalia said Wednesday last week it
may give a loan guarantee to Hertie.

The report recalled after talks with Hertie's administrator and
potential investors for the company, the regional ministry of
economics said the investors would make a loan application as soon
as possible, which it would then process quickly.  However, it did
not disclose details of the size of the guarantee needed or names
of investors, the report noted.

                        About Hertie GmbH

Based in Essen, Germany, Hertie GmbH -- http://www.hertie.de/--
operates 73 department stores and employs 4,100 people.  Hertie
posted EUR30 million in losses on EUR540 million in sales for
financial year 2007.


PROCREDIT BANK: Fitch Assigns 'D' Individual Rating
---------------------------------------------------
Fitch Ratings has assigned ProCredit Bank (Kosovo) a Long-term
foreign currency Issuer Default Rating of 'B-' (B minus) with a
Stable Outlook, a Short-term foreign currency IDR of 'B', an
Individual Rating of 'D' and a Support Rating of '5'.

ProCredit Bank (Kosovo)'s IDRs reflect the support the bank may
receive from its 83% shareholder, Frankfurt-based ProCredit
Holding AG (PCH, rated 'BBB-' ((BBB minus))/Stable) if required.
Although Fitch believes that the bank's owners have a strong
propensity to provide support, such support could be limited by
the potential country risk of Kosovo.

The agency has assigned a Long-term IDR which is capped at 'B-' (B
minus).  The bank operates in an economic and financial
environment which is high risk; although the de facto currency in
Kosovo is the euro.  Economic and financial data on Kosovo is
limited.

The Individual Rating reflects PCBK's strong domestic franchise
(42% market share of total banking sector assets), its stable and
well-established funding base, and its strong performance
(operating ROAE at end-2008: 52.95%).  However, it also reflects
the credit and operational risks associated with the bank's rapid
growth and scale, concentration in the deposit base on a single
large depositor and the bank's fairly tight capitalization, as
well as the operating environment.

Established in 2000, PCBK is a member of the PCH group of banks
(end-2008 total assets EUR4.8 billion).  It was set up as a
development-oriented bank specializing in micro and SME lending in
emerging markets.  PCBK is the largest bank in Kosovo.


TROBA GMBH: Claims Registration Period Ends March 27
----------------------------------------------------
Creditors of TroBa GmbH Handel und Montage have until March 27,
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 April 24, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Arnsberg
         Meeting Room 328
         Eichholzstr. 4
         59821 Arnsberg
         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:

         Manfred Gottschalk
         Wagenbergstr. 2
         59759 Arnsberg
         Germany

The District Court opened bankruptcy proceedings against the
company on Feb. 18, 2009.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         TroBa GmbH Handel und Montage
         Liegnitzer Strasse 11 a
         59469 Ense
         Germany

         Attn: Ingrid Kern, Manager
         Im Hoelken 7
         58675 Hemer
         Germany


=============
I C E L A N D
=============


ISLANDSBANKI: Vilhjalmur Vihjalmsson to be Named New Chairman
-------------------------------------------------------------
Iceland Review reports that Vilhjálmur H. Vilhjálmsson, a lawyer,
will be appointed chairman of the board of the new state-run
Islandsbanki (formerly New Glitnir banki hf).

Mr. Vilhjálmsson, the report discloses, will replace Valur Valsson
who resigned on Feb. 10.

The report recalls Minister of Finance Steingrímur J. Sigfússon
asked Mr. Valsson to remain chairman until the general meetings of
the banks, but refused.

The finance minister, the report notes, was criticized in
parliament for losing control of the banks.

                        About Íslandsbanki

Headquartered in Reykjavik, Iceland, Íslandsbanki (formerly New
Glitnir banki hf) – http://www.glitnir.is/-- offers an array of
financial services to corporation, financial institutions,
investors and individuals.

As reported in the TCR-Europe on Jan. 8, 2009, Bloomberg News said
that Judge Stuart Bernstein of the U.S. Bankruptcy Court for the
Southern District Court of New York granted Glitnir banki hf
permission to enter Chapter 15 of the U.S. bankruptcy code on
January 6, 2008.

Judge Bernstein, Bloomberg recalled, granted the motion for
recognition but told lawyers that he wanted more information about
how Icelandic law would handle claims.

Bloomberg noted the bank is shielded from lawsuits while it
reorganizes in Reykjavik.

Glitnir, Bloomberg disclosed, listed both debt and assets of more
than US$1 billion in its Chapter 15 petition.

As reported in the TCR-Europe on December 3, 2008, Bloomberg News
said Glitnir filed for Chapter 15 bankruptcy protection on
November 26 to stay creditor actions in the United States.
According to Bloomberg, while Glitnir has few assets and no
operations in the United States, the bank has sold more than US$7
billion in debt offerings in the U.S. market in a span of three
years.

On Nov. 27, 2008, the TCR-Europe reported that according to
Bloomberg, Glitnir's assets in the United States comprised of bank
accounts and loan provided to U.S. companies.  The bank, Bloomberg
said, citing papers filed with the court, issued 22 short- and
long- term notes for about US$7 billion in the country.

Iceland's government took control of Glitnir and two other
financial institutions -- Landsbanki Islands hf and Kaupthing Bank
hf -- after they failed to obtain short-term funding.  The banks
incurred about US$61 million in debt, Bloomberg stated.


NEW KAUPTHING: New Chair Quits Post Two Days After Appointment
--------------------------------------------------------------
Iceland Review reports that Gunnar Örn Kristjánsson resigned
Wednesday last week two days after he was appointed chairman of
the board of New Kaupthing.

The report relates Minister of Finance Steingrímur J. Sigfússon
said in a statement Mr. Kristjánsson "was appointed with short
notice and at closer consideration he concluded that the job was
more extensive and more binding that he was able to commit to."

Mr. Sigfussion will appoint a new a new chairman to the board of
Kaupthing as soon as possible, the report notes citing vb.is.

                    About New Kaupthing Bank

Headquartered in Reykjavik, Iceland, New Kaupthing Bank hf.
(formerly Kaupthing Bank hf.)  –- http://www.kaupthing.com-- is
engaged in the provision of financial services, such as private
banking, asset management, pension services, brokerage services,
investment banking, as well as corporate and retail banking.  The
Bank's offer is targeted at companies, institutional investors and
individuals.  The Bank is operational in thirteen countries,
including Luxembourg, Switzerland, the Nordic countries, the
United Kingdom and the United States.  The main subsidiaries
include Kaupthing Singer & Friedlander and FIH Erhvervsbank.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.

Citing a court filing by Olafur Gardarsson, Reuters disclosed
Kaupthing has about US$14.8 billion of principal assets, including
US$222 million located in the United States, and US$26
billion of principal indebtedness.


* ICELAND: Gov't Drops Court Action vs. UK Over Anti-Terror Laws
----------------------------------------------------------------
Iceland's new government will not push through with the previous
government's plans to take the UK government to the European Court
of Human Rights over its use of anti-terror laws to freeze
Icelandic assets, The Daily Telegraph reports citing The Financial
Times.

The report relates UK Treasury officials welcomed the comments and
said they looked forward to further talks over outstanding issues.

However, the report notes that while Iceland's move will help
improve relations, the UK remains focused on recovering debts owed
by Iceland over the collapse of Icesave.


* ICELAND: Net Asset Valuation of Banks to Be Completed in April
----------------------------------------------------------------
Iceland's Financial Supervisory Authority in a Feb. 24 statement
said that the preparation of the valuation of net assets of NBI
hf. (formerly New Landsbanki Bank hf.), Íslandsbanki (formerly New
Glitnir Bank hf.), and New Kaupthing Bank hf. (formerly Kaupthing
Bank hf.) by Deloitte LLP is to be completed by the end of March
2009 and the review of the valuation of the net assets by Oliver
Wyman is to be completed no later than April 15, 2009.

According to Iceland Review, once the appraisement has been
submitted, it will become clear how much money can go back into
the old banks.

Citing Morgunbladid's sources, Iceland Review discloses the
Icelandic government is about to reach an agreement with a foreign
consultant on negotiating on the payoff on its behalf.

Iceland Review notes that if the owners of the old banks --
primarily foreign claimants -- are not content with the payoff,
they might file a lawsuit to reclaim their funds.


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


EURO COACH: Shuts Down Business; 62 Jobs Affected
-------------------------------------------------
Irish Times' Paddy Clancy reports that Derrybeg-based Euro Coach
Builders is shutting down.

The closure, the report notes, will result in the loss of 62 jobs.

According to the report, production at the plant has been at a
standstill since December with no orders for the company’s new
Aurora 200 bus.

The company, as cited by the report, said it had made every effort
to generate sales and had been forced recently to impose an
extended period of short-time work and layoffs due to the present
economic climate.

The company went into examinership early last year, Highland Radio
recalls.


WATERFORD WEDGWOOD: UK and Irish Businesses Sold to KPS Capital
---------------------------------------------------------------
The Joint Administrators of Waterford Wedgwood UK Plc (in
administration) and the Receiver of Waterford Wedgwood PLC (in
receivership) on Friday, February 27, 2009, announced the sale of
the UK and Irish businesses.

Angus Martin, Deloitte partner and Joint Administrator, commented:
"We are pleased to announce that we have signed a contract with
KPS Capital Partners LP, a New York-based private equity limited
partnership (www.kpsfund.com), under which WWRD Holdings Limited,
a company newly formed by KPS, will acquire certain UK and Irish
assets of Waterford Wedgwood and the assets of several of its UK
and Irish subsidiaries."

Mr. Martin added: "As part of the transaction, KPS is purchasing
certain overseas assets and businesses of the Waterford Wedgwood
Group.  It is expected that the closing of the acquisition of the
overseas assets and businesses of Waterford, Wedgwood and Royal
Doulton will take place simultaneously.  The acquisition of the
Waterford, Wedgwood and Royal Doulton assets in the UK and Ireland
is conditional on satisfactory conclusion of the overseas
transactions.

"The Joint Administrators and Receiver are working with KPS to
expeditiously close the UK and Irish transaction and the
acquisitions of the overseas assets and businesses.  Completion is
subject to customary closing conditions and is expected in March."

The UK and Irish transaction includes assets within:

Waterford Wedgwood UK Plc (in administration)
Wedgwood Limited (in administration)
Josiah Wedgwood & Sons Limited (in administration)
Josiah Wedgwood & Sons (Exports) Limited (in administration)
Waterford Wedgwood Retail Limited (in administration)
Royal Doulton Limited (in administration)
Royal Doulton (UK) Limited (in administration)
Royal Doulton Overseas Holdings Limited (in administration)
Stuart & Sons Limited (in administration)
Statum Limited (in administration)
Waterford Wedgwood PLC (in receivership)
Waterford Crystal Limited (in receivership)
Waterford Crystal (Manufacturing) Limited (in receivership)
Cashs Mail Order Limited (in receivership)

The companies went into administration and receivership
respectively on January 5, 2009.


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


SEAT PAGINE: Fitch Affirms Long-Term Issuer Default Rating at 'B+'
------------------------------------------------------------------
Fitch Ratings has affirmed Italian-based directory company Seat
Pagine Gialle S.p.A's. Long-term Issuer Default Rating at 'B+',
with Negative Outlook.

Simultaneously, the agency has withdrawn all of Seat's ratings as
listed below.  Fitch will no longer provide ratings or analytical
coverage on Seat.

Seat Pagine Gialle's ratings are:

  -- Long-Term Issuer Default Rating: 'B+'; Outlook Negative

  -- Senior Secured facilities: 'BB-' (BB minus), RR3

  -- Lighthouse International Company SA Senior Unsecured
     facilities: 'B-' (B minus), RR6


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


AKTAU TERMINAL: Creditors Must File Claims by April 17
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP Aktau Terminal insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Azerbaev St. 58
         050059 Almaty
         Kazakhstan

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Baizakov St. 273b
         Almaty
         Kazakhstan


ATAMEKEN JSC: Creditors Must File Claims by April 17
----------------------------------------------------
JSC Joint-Stock Investment Fund of Immovables Real Estate Atameken
has declared insolvency.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Husainov St. 225-321
         Almaty
         Kazakhstan


DIN AR: Creditors Must File Claims by April 17
----------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Din Ar Aktobe insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Altynsarin St. 31
         Aktobe
         Aktube
         Kazakhstan

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Satpayev St. 16
         Aktobe
         Aktube
         Kazakhstan


INVEST BEREKE: Creditors Must File Claims by April 17
-----------------------------------------------------
JSC Joint-Stock Investment Fund of Risk Invest Bereke has declared
insolvency.  Creditors have until April 17, 2009, to submit
written proofs of claim to:

         Husainov St. 225-321
         Almaty
         Kazakhstan


INTEGRA MANAGEMENT: Creditors Must File Claims by April 17
----------------------------------------------------------
CJSC Representation of Integra Management has declared insolvency.
Creditors have until April 17, 2009, to submit written proofs of
claim to:

         First Km. 1
         Kuldjinsky tract
         Micro district "Atyrau-1"
         Almaty
         Kazakhstan


PAVLODAR SNUB: Creditors Must File Claims by April 17
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Pavlodar has
declared LLP Pavlodar Snub Export insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Kataev St. 24-8
         Pavlodar
         Kazakhstan
         8 (7182) 46-53-60

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Pavlodar
         Djambulskaya St. 6
         Pavlodar
         Pavlodar


TECHNIKA-V LLP: Creditors Must File Claims by April 17
------------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Rem Stroy Technika-V insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Gogol St. 177a
         Kostanai
         Kazakhstan

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Baitursynov St. 70
         Kostanai
         Kazakhstan


TRANS FOOD: Creditors Must File Claims by April 17
--------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Trans Food Marketing insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Gogol St. 177a
         Kostanai
         Kostanai
         Kazakhstan

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Baitursynov St. 70
         Kostanai
         Kazakhstan


TRANSIT TAIRA: Creditors Must File Claims by April 17
-----------------------------------------------------
The Specialized Inter-Regional Economic Court of Kostanai has
declared LLP Transit Taira insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         The Specialized Inter-Regional
         Economic Court of Kostanai
         Baitursynov St. 70
         Kostanai
         Kazakhstan


VK FOOD: Creditors Must File Claims by April 17
-----------------------------------------------
The Specialized Inter-Regional Economic Court of Almaty has
declared LLP VK Food Sauda insolvent.

Creditors have until April 17, 2009, to submit written proofs of
claim to:

         Makataev St. 196-36
         Almaty
         Kazakhstan

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Baizakov St. 273b
         Almaty
         Kazakhstan


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


IMMIGRATION & EMPLOYMENT: Creditors Must File Claims by March 20
----------------------------------------------------------------
LLC Immigration & Employment Agency has declared insolvency.
Creditors have until March 20, 2009, to submit written proofs of
claim to:

         LLC Immigration & Employment Agency
         Dushanbinskaya St. 72-55
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 55-94-45


=================
L I T H U A N I A
=================


* LITHUANIA: Enters Technical Recession
---------------------------------------
Lithuania's gross domestic product shrank a revised 2 percent
on an annual basis in the fourth quarter, the first in nine years,
Milda Seputyte at Bloomberg News reports citing data from the
the country's statistics office.

The economy also contracted a seasonally adjusted 1.3 percent from
the previous three-month period, entering a technical recession,
the report relates.

"The feeling is really gloomy," the news agency quoted Jekaterina
Rojaka, a Vilnius-based economist with DnB Nord Bankas, as saying.
"We have now official entered the recession area.  The recession
is going to be much deeper than expected and it's not surprising.
Manufacturing output is tumbling every month."

Eastern Europe economies face the challenges of a dearth of
international liquidity, exposure to vulnerable banks,
and collapsing export markets, according to the World Bank.

"The impact will now be felt strongly in the real economy as
defaults spread and foreclosures creep up, and as unemployment
rises sharply," Indermit Gill, World Bank Europe and Central Asia
Chief Economist, said.

The report recalls Moody's Investors Service said Feb. 24 that the
probability the government will seek international aid from the
International Monetary Fund and the European Union later this year
"is increasing" because of the deepening recession.  The economy
is likely to contract 6 percent this year, the rating agency said
as cited by the report.

Moody's, along with Standard & Poor's, placed Lithuania's credit
ratings this month for a possible downgrade, the report notes.


===================
L U X E M B O U R G
===================


COLT TELECOM: Mulls GBP178 Mln Rights Issue
-------------------------------------------
COLT Telecom Group S.A. is to launch a rights issue to strengthen
its balance sheet, The Daily Telegraph reports.

In a Feb. 20 statement COLT said it plans to raise GBP178.3
million before expenses (equivalent to EUR201.0 million) from the
issue of new equity by means of an open offer.  The offer will be
fully underwritten by FMR LLC and FIL Limited, existing
shareholders of COLT.

According to the report, COLT's rights issue is not at a discount,
unlike most recent cash calls, with shareholders offered 31 new
shares for every 100 existing ordinary ones at 84-1/2p each.  The
shares edged up 1/2 to 85p, the report discloses.

                       Financial Results

The report relates COLT's full year- figures show an 83% jump in
profits to EUR71.9 million pre-tax, while pre-exceptional
profits at the operating level rose 38% to 76.3 million.

The company, as cited by the report said that while it had not
experienced any material change in the business's performance
since the end of 2008, it noted the ongoing uncertainty in the
global economy meant that full-year 2009 revenues are difficult to
predict and challenging trading conditions are forecast for the
business environment as a whole.

                  About COLT Telecom Group S.A

Headquartered in Luxembourg, COLT Telecom Group S.A. –
http://www.colt.net/–- is the holding company.  The Company is a
provider of data, voice and managed services to business and
government in Europe.  COLT operates a 25,000 kilometer network
that include metropolitan area networks (MANs) in 34 European
cities with direct fiber connections into 16,000 buildings and 18
Colt data centers, as well as connecting a further 85 cities,
including New York, Boston, Newark and in the United States of
America.  The Company's products include data services and voice
solutions.  The Company's Data services include Ethernet, Internet
Protocol Private Networks (IPVPN), Internet Protocol (IP) Voice,
Internet Access and Bandwidth services.  The Company's portfolio
of voice solutions includes Voice over IP (VoIP) and non-VoIP
services.

                          *     *     *

Colt Telecom Group S.A. continues to carry a B2 long-term
corporate family rating from Moody's Investors Service with stable
outlook.


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


CARLSON WAGONLIT: S&P Cuts Long-Term Corp. Credit Rating to 'B'
---------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on Netherlands-incorporated business
travel operator Carlson Wagonlit B.V. to 'B' from 'B+'.

At the same time, the issue rating on the company's EUR285 million
floating-rate notes maturing in 2015 was lowered to 'CCC+' from
'B-', with the recovery rating remaining unchanged at '6',
indicating that S&P expects a negligible (0%-10%) recovery for the
notes.  In addition, the issue rating on its US$850 million senior
facilities was lowered to 'B+' from 'BB-', with the recovery
rating remaining unchanged at '2', indicating that S&P expects a
substantial (70%-90%) recovery for the facilities 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
protracted and severe economic downturn is affecting CWT's
operating performance in its key markets beyond S&P's initial
expectations," said Standard & Poor's credit analyst Silvia
Ortolan.  "In particular, the CreditWatch placement relays S&P's
concern over the potentially ongoing decline in revenues and
earnings, which could narrow the covenant headroom under CWT's
existing facilities."  In S&P's view, if lower business confidence
results in further reductions in business travel during 2009, the
company might find it difficult to cushion the negative impact of
declining business volumes and margins through its flexible
cost structure.  Nevertheless, S&P recognizes the group's leading
position in the fragmented corporate travel services market and
its track record in cash generation, as well as in acquiring and
integrating businesses.  At Sept. 30, 2008, CWT had total reported
financial debt of US$1.1 billion, or 5.6x total adjusted debt to
EBITDA, which excludes the group's cash and cash equivalent (net
of overdrafts) position of about US$186 million.

Since the leveraging of the business with the 2006 acquisition of
U.S. business travel operator Navigant, the company has managed to
improve its full-year unadjusted EBITDA margin, which in 2007 rose
to 12.4% including integration costs from 10% before the
acquisition, reflecting the group's ability to generate synergies
from external growth.  The company's good earnings track record
could come to an end if a persistently weak economic environment
reinforces the trend observed during the third quarter of 2008.
CWT's reported EBITDA margin, on a pro forma and constant currency
basis and before integration costs, decreased to 9.5% in third-
quarter 2008 from 11.3% in the same period the previous year.  In
S&P's view, the company's degree of flexibility through its cost
structure, which enables CWT to adapt costs quickly to adverse
business conditions, might not be sufficient to compensate for
further declining business volumes.

Due to the debt-financed buyout and 2006 acquisition, CWT's credit
protection measures are weak.  Having incurred high leverage
during the recapitalization and the acquisition, CWT's ratio of
total adjusted debt to EBITDA, which excludes the group's cash
position of about US$186 million (net of overdrafts), moved to
5.6x for the 12 months to Sept. 30, 2008, a slight improvement on
5.8x at fiscal-year ending Dec. 31, 2007.  However, given the
deteriorating conditions in the company's key markets,
deleveraging through EBITDA growth would be difficult to be
achieved for the time being, in Standard & Poor's view.

"We expect to reassess the CreditWatch placement within the next
three months, taking into account CWT's ability to counter
potentially declining sales volume through appropriate adjustments
to its cost base," said Ms. Ortolan.  In S&P's view, CWT will need
to effectively increase operating margins to offset the risk of
covenant breach under its senior facilities agreement.  The
outcome of the CreditWatch status will depend on the effectiveness
of the measures adopted to adjust to the current sluggish trading
conditions.


HARBOURMASTER CLO 5: Fitch Cuts Ratings on Two Tranches to Low-B
----------------------------------------------------------------
Fitch Ratings has downgraded four tranches and one combination
note from three European collateralized loan obligations.  In
addition, Fitch has revised the Outlook for 5 mezzanine tranches
and 2 combination notes to Negative from Stable.  The rating
actions and their respective rationals are:

Harbourmaster CLO 5 B.V.

  -- EUR9 million class A4E floating-rate notes
     (ISIN: XS0223503151): 'A'; Outlook revised to Negative from
     Stable

  -- EUR16 million class A4F notes (ISIN: XS0223503581): 'A';
     Outlook revised to Negative from Stable

  -- EUR8.3 million class B2E floating-rate notes
     (ISIN: XS0223503821): downgraded to 'B' from 'BB'; Negative
     Outlook

  -- EUR6.7 million class B2F notes (ISIN: XS0223504043):
     downgraded to 'B' from 'BB'; Negative Outlook

  -- EUR5.3 million class S1 combination notes
     (ISIN: XS0223504472): downgraded to 'B' from 'BB-' (BB
     minus); Negative Outlook

  -- EUR11.5 million class S2 combination notes
     (ISIN: XS0223504555): 'A'; Outlook revised to Negative from
     Stable

Since Fitch's August 8, 2008 rating action, Harbourmaster CLO 5
has suffered exposure to four defaulted issuers comprising 4.8% of
the portfolio.  As such the credit enhancement has shown
significant deterioration.  In addition, Harbourmaster CLO 5 also
has a 3.3% exposure to 'CCC'-rated assets relative to 0% in August
2008.

Given the current defaults, the additional coverage test, the most
junior over-collateralization test, could soon be breached.  This
would result in a partial redemption of the class B2 notes, which
would reduce the credit risk on these notes.  However, in Fitch's
view this benefit is likely to be temporary, as additional
defaults in the portfolio would lead to the failure of the class
B1 coverage tests.  This failure would then prevent any cash flow
distribution to the class B2E and class B2F notes.  The credit
concern is that if the class B2E and B2F notes capitalize interest
for a significant period of time it may be difficult to repay the
capitalized interest.  As such, the credit enhancement of the
class B2E and class B2F is no longer deemed consistent with a 'BB'
rating definition, and Fitch has downgraded this class to 'B'.  In
addition, the Outlooks for class A4E and A4F have been revised to
Negative from Stable.

The S1 combination notes are reliant on cash distributions made to
the class B2F and the equity holders. In Fitch's view, the class
B1 coverage test is likely to come under pressure, and
consequently cash flow may be cut-off from both the junior and the
equity holders.  As such the agency has downgraded the S1
combination notes to 'B'.  In addition the Outlook for the S2
combination notes (composed of A4F and equity notes) has been
revised to Negative from Stable, reflecting the Outlook of the
underlying A4F note.

Harbourmaster CLO 8 B.V.

  -- EUR23.2 million class C deferrable floating-rate notes
     (ISIN: XS0277555933): 'A'; Outlook revised to Negative from
     Stable

  -- EUR11.8 million class E deferrable floating-rate notes
     (ISIN: XS0277559844): downgraded to 'B' from 'BB'; Negative
     Outlook

Since Fitch's August 8, 2008 rating action, Harbourmaster CLO 8
has suffered exposure to three defaulted issuers comprising 4.6%
of the portfolio.  As such, the credit enhancement has shown
significant deterioration.  In addition, Harbourmaster 8 also has
2.1% exposure to 'CCC'-rated assets relative to 0% in August 2008.

Given the current defaults, the class E stabilization test, the
most junior over-collateralization test, could be breached.  This
would result in a partial redemption of the class E notes, which
reduces the credit risk on these notes.  However, in Fitch's view
this benefit is likely to be temporary, as additional defaults in
the portfolio would lead to the failure of the class D coverage
tests.  This failure would then prevent any cash flow distribution
to the class E notes.  The credit concern is that if the class E
notes capitalize interest for a significant period of time it may
be difficult to repay the capitalized interest.  As such, the
credit enhancement of the class E is no longer deemed consistent
with a 'BB' rating definition, and Fitch has downgraded this class
to 'B'.  In addition, the Outlook for class C has been revised to
Negative from Stable.

Harbourmaster Pro-Rata CLO 2 B.V.

  -- EUR6 million class A4E notes (ISIN: XS0262177172): 'A';
     Outlook revised to Negative from Stable

  -- EUR6.75 million class A4F notes (ISIN: XS0262177255): 'A';
     Outlook revised to Negative from Stable

  -- EUR17.5 million class B2 notes (ISIN: XS0262177412):
     downgraded to 'B' from 'BB'; Negative Outlook

  -- EUR5.2 million class S4 notes (ISIN: XS0262179467): 'A-' (A
     minus); Outlook revised to Negative from Stable

Since Fitch's August 8, 2008 latest rating action, Harbourmaster
Pro-Rata CLO 2 has suffered exposure to three defaulted issuers
comprising 3.2% of the portfolio.  As such, the credit enhancement
has shown significant deterioration.  In addition, Harbourmaster
Pro-Rata 2 also has 3.7% exposure to 'CCC'-rated assets relative
to 0% in August 2008.

Given the current defaults, the additional coverage test, the most
junior over-collateralization test, could be breached.  This would
result in a partial redemption of the class B2 notes, which
reduces the credit risk on these notes.  However, in Fitch's view
this benefit is likely to be temporary, as additional defaults in
the portfolio would lead to the failure of the class B1 coverage
tests.  This failure would then prevent any cash flow distribution
to the class B2 notes.  The credit concern is that if the class B2
notes capitalize interest for a significant period of time it may
be difficult to repay the capitalized interest.  As such, the
credit enhancement of the class B2 is no longer deemed consistent
with a 'BB' rating definition, and Fitch has downgraded this class
to 'B'.  In addition, the Outlooks for class A4E and A4F have been
revised to Negative from Stable.

The S4 combination notes (composed of A4E and equity notes), have
been revised to Negative Outlook from Stable reflecting the
outlook of the underlying A4E note.


HARBOURMASTER CLO 8: Fitch Cuts Rating on Class E Notes to 'B'
--------------------------------------------------------------
Fitch Ratings has downgraded four tranches and one combination
note from three European collateralized loan obligations.  In
addition, Fitch has revised the Outlook for 5 mezzanine tranches
and 2 combination notes to Negative from Stable.  The rating
actions and their respective rationals are:

Harbourmaster CLO 5 B.V.

  -- EUR9 million class A4E floating-rate notes
     (ISIN: XS0223503151): 'A'; Outlook revised to Negative from
     Stable

  -- EUR16 million class A4F notes (ISIN: XS0223503581): 'A';
     Outlook revised to Negative from Stable

  -- EUR8.3 million class B2E floating-rate notes
     (ISIN: XS0223503821): downgraded to 'B' from 'BB'; Negative
     Outlook

  -- EUR6.7 million class B2F notes (ISIN: XS0223504043):
     downgraded to 'B' from 'BB'; Negative Outlook

  -- EUR5.3 million class S1 combination notes
     (ISIN: XS0223504472): downgraded to 'B' from 'BB-' (BB
     minus); Negative Outlook

  -- EUR11.5 million class S2 combination notes
     (ISIN: XS0223504555): 'A'; Outlook revised to Negative from
     Stable

Since Fitch's August 8, 2008 rating action, Harbourmaster CLO 5
has suffered exposure to four defaulted issuers comprising 4.8% of
the portfolio.  As such the credit enhancement has shown
significant deterioration.  In addition, Harbourmaster CLO 5 also
has a 3.3% exposure to 'CCC'-rated assets relative to 0% in August
2008.

Given the current defaults, the additional coverage test, the most
junior over-collateralization test, could soon be breached.  This
would result in a partial redemption of the class B2 notes, which
would reduce the credit risk on these notes.  However, in Fitch's
view this benefit is likely to be temporary, as additional
defaults in the portfolio would lead to the failure of the class
B1 coverage tests.  This failure would then prevent any cash flow
distribution to the class B2E and class B2F notes.  The credit
concern is that if the class B2E and B2F notes capitalize interest
for a significant period of time it may be difficult to repay the
capitalized interest.  As such, the credit enhancement of the
class B2E and class B2F is no longer deemed consistent with a 'BB'
rating definition, and Fitch has downgraded this class to 'B'.  In
addition, the Outlooks for class A4E and A4F have been revised to
Negative from Stable.

The S1 combination notes are reliant on cash distributions made to
the class B2F and the equity holders. In Fitch's view, the class
B1 coverage test is likely to come under pressure, and
consequently cash flow may be cut-off from both the junior and the
equity holders.  As such the agency has downgraded the S1
combination notes to 'B'.  In addition the Outlook for the S2
combination notes (composed of A4F and equity notes) has been
revised to Negative from Stable, reflecting the Outlook of the
underlying A4F note.

Harbourmaster CLO 8 B.V.

  -- EUR23.2 million class C deferrable floating-rate notes
     (ISIN: XS0277555933): 'A'; Outlook revised to Negative from
     Stable

  -- EUR11.8 million class E deferrable floating-rate notes
     (ISIN: XS0277559844): downgraded to 'B' from 'BB'; Negative
     Outlook

Since Fitch's August 8, 2008 rating action, Harbourmaster CLO 8
has suffered exposure to three defaulted issuers comprising 4.6%
of the portfolio.  As such, the credit enhancement has shown
significant deterioration.  In addition, Harbourmaster 8 also has
2.1% exposure to 'CCC'-rated assets relative to 0% in August 2008.

Given the current defaults, the class E stabilization test, the
most junior over-collateralization test, could be breached.  This
would result in a partial redemption of the class E notes, which
reduces the credit risk on these notes.  However, in Fitch's view
this benefit is likely to be temporary, as additional defaults in
the portfolio would lead to the failure of the class D coverage
tests.  This failure would then prevent any cash flow distribution
to the class E notes.  The credit concern is that if the class E
notes capitalize interest for a significant period of time it may
be difficult to repay the capitalized interest.  As such, the
credit enhancement of the class E is no longer deemed consistent
with a 'BB' rating definition, and Fitch has downgraded this class
to 'B'.  In addition, the Outlook for class C has been revised to
Negative from Stable.

Harbourmaster Pro-Rata CLO 2 B.V.

  -- EUR6 million class A4E notes (ISIN: XS0262177172): 'A';
     Outlook revised to Negative from Stable

  -- EUR6.75 million class A4F notes (ISIN: XS0262177255): 'A';
     Outlook revised to Negative from Stable

  -- EUR17.5 million class B2 notes (ISIN: XS0262177412):
     downgraded to 'B' from 'BB'; Negative Outlook

  -- EUR5.2 million class S4 notes (ISIN: XS0262179467): 'A-' (A
     minus); Outlook revised to Negative from Stable

Since Fitch's August 8, 2008 latest rating action, Harbourmaster
Pro-Rata CLO 2 has suffered exposure to three defaulted issuers
comprising 3.2% of the portfolio.  As such, the credit enhancement
has shown significant deterioration.  In addition, Harbourmaster
Pro-Rata 2 also has 3.7% exposure to 'CCC'-rated assets relative
to 0% in August 2008.

Given the current defaults, the additional coverage test, the most
junior over-collateralization test, could be breached.  This would
result in a partial redemption of the class B2 notes, which
reduces the credit risk on these notes.  However, in Fitch's view
this benefit is likely to be temporary, as additional defaults in
the portfolio would lead to the failure of the class B1 coverage
tests.  This failure would then prevent any cash flow distribution
to the class B2 notes.  The credit concern is that if the class B2
notes capitalize interest for a significant period of time it may
be difficult to repay the capitalized interest.  As such, the
credit enhancement of the class B2 is no longer deemed consistent
with a 'BB' rating definition, and Fitch has downgraded this class
to 'B'.  In addition, the Outlooks for class A4E and A4F have been
revised to Negative from Stable.

The S4 combination notes (composed of A4E and equity notes), have
been revised to Negative Outlook from Stable reflecting the
outlook of the underlying A4E note.


HARBOURMASTER PRO-RATA: Fitch Cuts Rating on Cl. B2 Notes to 'B'
----------------------------------------------------------------
Fitch Ratings has downgraded four tranches and one combination
note from three European collateralized loan obligations.  In
addition, Fitch has revised the Outlook for 5 mezzanine tranches
and 2 combination notes to Negative from Stable.  The rating
actions and their respective rationals are:

Harbourmaster CLO 5 B.V.

  -- EUR9 million class A4E floating-rate notes
     (ISIN: XS0223503151): 'A'; Outlook revised to Negative from
     Stable

  -- EUR16 million class A4F notes (ISIN: XS0223503581): 'A';
     Outlook revised to Negative from Stable

  -- EUR8.3 million class B2E floating-rate notes
     (ISIN: XS0223503821): downgraded to 'B' from 'BB'; Negative
     Outlook

  -- EUR6.7 million class B2F notes (ISIN: XS0223504043):
     downgraded to 'B' from 'BB'; Negative Outlook

  -- EUR5.3 million class S1 combination notes
     (ISIN: XS0223504472): downgraded to 'B' from 'BB-' (BB
     minus); Negative Outlook

  -- EUR11.5 million class S2 combination notes
     (ISIN: XS0223504555): 'A'; Outlook revised to Negative from
     Stable

Since Fitch's August 8, 2008 rating action, Harbourmaster CLO 5
has suffered exposure to four defaulted issuers comprising 4.8% of
the portfolio.  As such the credit enhancement has shown
significant deterioration.  In addition, Harbourmaster CLO 5 also
has a 3.3% exposure to 'CCC'-rated assets relative to 0% in August
2008.

Given the current defaults, the additional coverage test, the most
junior over-collateralization test, could soon be breached.  This
would result in a partial redemption of the class B2 notes, which
would reduce the credit risk on these notes.  However, in Fitch's
view this benefit is likely to be temporary, as additional
defaults in the portfolio would lead to the failure of the class
B1 coverage tests.  This failure would then prevent any cash flow
distribution to the class B2E and class B2F notes.  The credit
concern is that if the class B2E and B2F notes capitalize interest
for a significant period of time it may be difficult to repay the
capitalized interest.  As such, the credit enhancement of the
class B2E and class B2F is no longer deemed consistent with a 'BB'
rating definition, and Fitch has downgraded this class to 'B'.  In
addition, the Outlooks for class A4E and A4F have been revised to
Negative from Stable.

The S1 combination notes are reliant on cash distributions made to
the class B2F and the equity holders. In Fitch's view, the class
B1 coverage test is likely to come under pressure, and
consequently cash flow may be cut-off from both the junior and the
equity holders.  As such the agency has downgraded the S1
combination notes to 'B'.  In addition the Outlook for the S2
combination notes (composed of A4F and equity notes) has been
revised to Negative from Stable, reflecting the Outlook of the
underlying A4F note.

Harbourmaster CLO 8 B.V.

  -- EUR23.2 million class C deferrable floating-rate notes
     (ISIN: XS0277555933): 'A'; Outlook revised to Negative from
     Stable

  -- EUR11.8 million class E deferrable floating-rate notes
     (ISIN: XS0277559844): downgraded to 'B' from 'BB'; Negative
     Outlook

Since Fitch's August 8, 2008 rating action, Harbourmaster CLO 8
has suffered exposure to three defaulted issuers comprising 4.6%
of the portfolio.  As such, the credit enhancement has shown
significant deterioration.  In addition, Harbourmaster 8 also has
2.1% exposure to 'CCC'-rated assets relative to 0% in August 2008.

Given the current defaults, the class E stabilization test, the
most junior over-collateralization test, could be breached.  This
would result in a partial redemption of the class E notes, which
reduces the credit risk on these notes.  However, in Fitch's view
this benefit is likely to be temporary, as additional defaults in
the portfolio would lead to the failure of the class D coverage
tests.  This failure would then prevent any cash flow distribution
to the class E notes.  The credit concern is that if the class E
notes capitalize interest for a significant period of time it may
be difficult to repay the capitalized interest.  As such, the
credit enhancement of the class E is no longer deemed consistent
with a 'BB' rating definition, and Fitch has downgraded this class
to 'B'.  In addition, the Outlook for class C has been revised to
Negative from Stable.

Harbourmaster Pro-Rata CLO 2 B.V.

  -- EUR6 million class A4E notes (ISIN: XS0262177172): 'A';
     Outlook revised to Negative from Stable

  -- EUR6.75 million class A4F notes (ISIN: XS0262177255): 'A';
     Outlook revised to Negative from Stable

  -- EUR17.5 million class B2 notes (ISIN: XS0262177412):
     downgraded to 'B' from 'BB'; Negative Outlook

  -- EUR5.2 million class S4 notes (ISIN: XS0262179467): 'A-' (A
     minus); Outlook revised to Negative from Stable

Since Fitch's August 8, 2008 latest rating action, Harbourmaster
Pro-Rata CLO 2 has suffered exposure to three defaulted issuers
comprising 3.2% of the portfolio.  As such, the credit enhancement
has shown significant deterioration.  In addition, Harbourmaster
Pro-Rata 2 also has 3.7% exposure to 'CCC'-rated assets relative
to 0% in August 2008.

Given the current defaults, the additional coverage test, the most
junior over-collateralization test, could be breached.  This would
result in a partial redemption of the class B2 notes, which
reduces the credit risk on these notes.  However, in Fitch's view
this benefit is likely to be temporary, as additional defaults in
the portfolio would lead to the failure of the class B1 coverage
tests.  This failure would then prevent any cash flow distribution
to the class B2 notes.  The credit concern is that if the class B2
notes capitalize interest for a significant period of time it may
be difficult to repay the capitalized interest.  As such, the
credit enhancement of the class B2 is no longer deemed consistent
with a 'BB' rating definition, and Fitch has downgraded this class
to 'B'.  In addition, the Outlooks for class A4E and A4F have been
revised to Negative from Stable.

The S4 combination notes (composed of A4E and equity notes), have
been revised to Negative Outlook from Stable reflecting the
outlook of the underlying A4E note.


SCEPTRE CAPITAL: S&P Cuts Rating on EUR40 Mln Notes to 'BB-'
------------------------------------------------------------
Standard & Poor's Ratings Services took credit rating actions on
seven European synthetic collateralized debt obligation tranches
following rating changes on the underlying collateral in those
deals.

Specifically, for these CDO transactions, the ratings on:

   –- One tranche was lowered and placed on CreditWatch negative;

   —- Three tranches were lowered; and

   —- Three tranches were lowered and removed from CreditWatch
      negative.

                        Ratings List

        Rating Lowered and Placed on Creditwatch Negative

                      Prelude Europe CDO Ltd.
   AU$40 Million Credit-Linked Notes Series 2005-4 (Credit Sail)

                            Rating
                            ------
                  To                    From
                  --                    ----
                  BB+p/Watch Neg        BBB-p

                         Ratings Lowered

                    Momentum CDO (Europe) Ltd.
   EUR10.3 Million Repackaged MBIA Global Funding LLC Variable
                    Coupon Notes Series 2005-8

                              Rating
                              ------
                    To                    From
                    --                    ----
                    BBB+                   AA

                       Sceptre Capital B.V.
     EUR40 Million CMS-Linked Repackaged "PowerTranche" Notes
                          Series 2006-5

                             Rating
                             ------
                    To                    From
                    --                    ----
                    BB-                    BB

                   Corsair (Jersey) No. 4 Ltd.
      US$150 Million Floating-Rate Step-Down Secured Portfolio
                  Credit-Linked Notes Series 2

                             Rating
                             ------
                    To                    From
                    --                    ----
                    BBB+                    A-

      Ratings Lowered and Removed from Creditwatch Negative

                             ELM B.V.
          EUR1 Billion Perpetual Step-Up Notes Series 44

                         Rating
                         ------
                To                    From
                --                    ----
                A-                     A/Watch Neg

                             ELM B.V.
      AU$300 Million Perp Fixed-Rate Step-Up Notes Series 105

                         Rating
                         ------
                To                    From
                ----
                A-                     A/Watch Neg

                             ELM B.V.
    AU$450 Million Perp Floating-Rate Step-Up Notes Series 106

                         Rating
                         ------
                To                    From
                --                    ----
                A-                     A/Watch Neg


SNS REAAL: Fitch Downgrades Long-Term Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has downgraded SNS REAAL's Long-term Issuer Default
Rating to 'BBB+' from 'A-' (A minus).  The agency has affirmed the
company's Short-term IDR at 'F2'.  Fitch has also downgraded the
Insurer Financial Strength Rating of REAAL Verzekeringen's
operating insurance subsidiaries to 'A-' (A minus) from 'A', and
downgraded SNS Bank's Long-term IDR to 'A' from 'A+'.  The
Outlooks for all these ratings are Negative. SNS Bank's Individual
rating has also been downgraded to 'C' from 'B/C'.  SNS Bank's
Short-term IDR has been affirmed at 'F1', Support Rating at '3'
and Support Rating Floor at 'BB+'.  The rating actions have no
impact on the 'AAA' ratings of the covered bonds and the Dutch
government guaranteed debt of SNS Bank.  A full rating breakdown
is provided at the end of this comment.

The rating actions are taken in the light of the protracted
turmoil in the financial markets and the continuing decline of the
global economy.  This difficult operating environment severely
affected SNS REAAL's performance in 2008, leading to a
consolidated net loss of EUR504 million for the full year, and is
expected to continue throughout 2009.  However, the group received
a total capital injection of EUR1.25 billion in November 2008,
consisting of EUR750 million from the Dutch government and EUR500
million from Stichting Beheer SNS REAAL, a self-owned foundation
that holds a majority (54%) stake in SNS REAAL.  At end-2008,
REAAL Verzekeringen's consolidated solvency ratio amounted to
176%, which was lower-than-expected, and its double leverage ratio
was acceptable at 113.7%.  SNS Bank's Tier 1 ratio was sound at
9.4%.  Fitch expects the operating environment to remain
challenging through 2009, which is likely to put pressure on SNS
REAAL's earnings and on its financial flexibility.

The rating actions also reflect the notable deterioration in
profitability at the group's insurance operations as well as its
lower-than-expected, yet adequate, solvency.  The IFS ratings of
SNS REAAL's major insurance subsidiaries continue to reflect
extended business position in the Dutch insurance market.  In
addition, the integration of recently acquired insurance
operations is progressing well.  These strengths are offset by a
diminished financial flexibility as a consequence of the current
challenging financial environment and the business concentration
in the competitive Dutch insurance market.  Fitch expects the
profitability of insurance to remain under pressure for the
foreseeable future.

SNS Bank's ratings reflect the protracted deterioration of the
operating environment which negatively affected the bank's 2008
performance, and should continue to put pressure on the bank's
future earnings.  In particular, the agency notes the weakening
quality of the property finance loan book which led to EUR116
million of impairment charges in 2008.  The bank has already
stated that it expects impairment charges on the property finance
loan book of a similar magnitude in 2009.  SNS Bank's Individual
Rating and IDRs continue to reflect its sound capital ratios and
the good asset quality of its non-property finance loan book,
essentially Dutch residential mortgages.

SNS REAAL is a large financial services group focused on retail
banking, individual insurance and pension activities in the
Netherlands.  REAAL Verzekeringen, the group's insurance arm, is
the second-largest life insurer in the Netherlands (following
recent acquisitions) with over 15% market share and around EUR40bn
of assets under management.  SNS Bank is the fourth-largest bank
in the Netherlands with a 9%-market share of savings deposits.

The rating actions are:

SNS REAAL:

  -- Long-term IDR: downgraded to 'BBB+' from 'A-' (A minus);
     Outlook Negative

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

  -- Short-term IDR: affirmed at 'F2'

  -- REAAL Levensverzekeringen: IFS rating downgraded to 'A-' (A
     minus) from 'A'; Outlook Negative

  -- REAAL Schadeverzekeringen: IFS rating downgraded to 'A-' (A
     minus) from 'A'; Outlook Negative

SNS Bank:

  -- Long-term IDR: downgraded to 'A' from 'A+'; Outlook Negative
  -- Senior debt: downgraded to 'A' from 'A+'
  -- Subordinated debt: downgraded to 'A-' ('A minus') from 'A'
  -- Hybrid securities: downgraded to 'BBB+' from 'A'
  -- Short-term IDR: affirmed at 'F1'
  -- Commercial Paper: affirmed at 'F1'
  -- Individual Rating: downgraded to 'C' from 'B/C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'


===========
P O L A N D
===========


POLSKI KONCERN: Fitch Cuts Issuer Default Rating to 'BB+'
---------------------------------------------------------
Fitch Ratings has downgraded Polish oil refining and marketing
company Polski Koncern Naftowy ORLEN S.A.'s Long-term foreign
currency Issuer Default Rating to 'BB+' from 'BBB-' (BBB minus)
and the company's Short-term foreign currency IDR to 'B' from
'F3'.  The agency has also downgraded PKN's Long-term local
currency Issuer Default Rating to 'BB+' from 'BBB-' (BBB minus)
and the company's Short-term local currency IDR to 'B' from 'F3'.
PKN's foreign and local currency senior unsecured ratings were
downgraded to 'BB+' from 'BBB-' (BBB minus).  All the ratings
remain on Rating Watch Negative, where they were placed on
January 23, 2009 pending a financial covenant issue.  The expected
senior unsecured bond rating has been withdrawn.

The rating action reflects the company's high financial leverage
given its business profile as an independent refining and
marketing company, and sizeable capex program for 2009-2013 of
PLN12.6 billion, ahead of an expected weakening of market
conditions in the refining sector and already deteriorated
conditions for the petrochemicals operations.  The debt-funded
acquisition of Lithuania's AB Mazeikiu Nafta in December 2006 has
contributed less EBITDA to the consolidated group than originally
expected by management.  PKN expects to buy the remaining stake in
MN from the Lithuanian government in H209 for US$284 million (PLN1
billion).  In addition, PKN has yet to realize any disposal
proceeds from Polkomtel to deleverage the balance sheet.  As a
result, PKN's financial profile is no longer commensurate with an
investment grade rating, taking into account the high business
risk, cyclicality and capital intensity of its refining and
petrochemicals businesses.

The rating watch negative continues to reflect PKN's increased
refinancing risk in 2009 due to the company's failure to keep its
net debt/EBITDA at end-2008 below the financial covenant of 3.5x
included in PKN's major bank loan agreements.  The actual
covenanted ratio increased to 3.66x based on unaudited financial
statements for 2008 primarily due to two one-off accounting events
in Q408.  As a result, PKN asked lending banks for a waiver as at
end-December 2008 and end-June 2009, which, Fitch anticipates,
could lead to changes in existing loan terms given current market
conditions.  Based on International Accounting Standards, PKN
reclassified some PLN9 billion of long-term debt, where the
covenant was exceeded (out of total debt of PLN13.9 billion) into
short-term debt in its unaudited 2008 financial statements to
reflect the possibility that it might not have unconditional
access to these lines pending resolution of the waiver discussions
with its banks.  A breach of financial covenants, the formal
breach of which may be announced in April 2009 when audited
statements are available, is defined as an event of default under
their bank loan documentation.  The company expects its banks to
make a decision on the proposed waiver in April 2009 before the
audited accounts become available.

The company's liquidity position is dependent on the outcome of
the ongoing discussions with banks regarding the covenant issue.
PKN would not be further exposed to substantial refinancing risk
in 2009 if it is able to achieve a favorable resolution of the
covenant issue with its banks.  In the event of a favorable
resolution, Fitch would anticipate being able to resolve the RWN,
and assign a Stable Outlook to the Long-term IDR.  Under such a
scenario, the company would have substantial financial headroom in
the 'BB+' category.

The covenant issue is largely driven by a large non-recurring
inventory holding loss of PLN2.7 billion in Q408 on the back of a
drop in crude oil prices and an increase in the Polish zloty-
equivalent value of PKN's EUR- and US$-denominated loans due to a
marked depreciation of the Polish zloty against the euro and the
US dollar.  Fitch's approach to rating refining companies is to
focus on cash flow-based credit ratios excluding one-off
accounting events.  PKN's operating cash flow and EBITDA,
excluding one-off inventory holding losses, were solid in 2008 as
refining margins remained healthy.  However, financial leverage,
measured as net debt/EBITDA excluding inventory holding
gains/losses plus Polkomtel dividends, deteriorated to 2.4x at
end-2008 from 2.2x at end-2007 (though it remained stable in Q408)
and from 1.5x at end-2006, due to higher net debt.


===============
P O R T U G A L
===============


BANCO PRIVADO: Moody's Cuts Bank Financial Strength Rating to 'E'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of Banco
Privado Português, S.A.: the bank financial strength rating to E
from D and the long-term local and foreign currency bank deposit
ratings to B3 (from Ba2).  The short-term deposit rating remains
at Not-Prime, while the long-term deposit ratings remain under
review with direction uncertain.

The downgrade of BPP's BFSR to E (translating into a Baseline
Credit Assessment or BCA of Caa1) has been driven by these
considerations:

1) The need to seek liquidity support.  The deteriorated liquidity
   position led to the Bank of Portugal arranging an emergency
   credit line facility provided by a consortium of six Portuguese
   banks for a total amount of EUR450 million.  This credit line,
   which benefits from a guarantee from the Portuguese State, was
   provided for a period of six months, expiring in 2 May 2009, by
   these institutions: Caixa Geral de Depósitos (rated Aa1/Prime-
   1/C) EUR120 million, Banco Comercial Português (rated
   Aa3/Prime-1/C+) EUR120 million, Banco Espírito Santo
   (Aa3/Prime-1/C+) EUR80 million, Banco Santander Totta
   (Aa3/Prime-1/C+) EUR60 million, Banco BPI (rated A1/Prime-1/C)
   EUR50 million and Caixa Central de Crédito Agrícola Mútuo (not
   rated) EUR20 million. According to the Bank of Portugal
   statement on 1 December 2008, this credit line facility is
   provided to ensure that BPP can honour its obligations while
   options to ensure the viability of the bank are analysed.  On
   25 November 2008, Bank of Portugal had urged BPP to present a
   plan of viability and improvement for the bank.

2) Governance issues beyond related-party lending and "key man"
   risk.  BPP is under investigation for alleged malpractices by
   the Portuguese Securities and Exchange Commission (Comissão de
   Mercado de Valores Mobiliários - CMVM) and the Public
   Prosecution Service.  João Rendeiro, which is one of the
   largest shareholders and chairman of the holding company
   (Privado Holding, not rated) resigned after the bank came
   under increasing scrutiny.  With liquidity support organised by
   Bank of Portugal, the regulator has appointed three new
   directors and the President, who represent the consortium of
   banks that provided liquidity support. Bank of Portugal has
   recently suspended the former Board members from their
   functions.

3) The serious damage to the bank's business franchise and the
   uncertainly around the bank's long-term viability.  BPP's
   franchise value is damaged, with a loss of confidence by many
   customers which is of particular importance in a private
   banking business where reputation and credibility play a key
   role.  In Moody's last rating action on November 13, 2008, when
   the BFSR was downgraded to D from D+, the rating agency
   highlighted that the bank would likely suffer profitability,
   liquidity and capital pressures as a result of its risky
   business model.  Despite the fact that the bank has not
   disclosed publicly (or to Moody's) any updated financial
   information, the rating agency considers that the current
   stress situation will exacerbate the previously identified
   vulnerabilities and therefore Moody's expects the bank to
   continue to operate in a very distressed situation.  The only
   updated financial information which is publicly available since
   Moody's last rating action is the unaudited balance sheet as of
   September 2008, where a net loss of EUR39 million is recorded
   for the period January-September 2008, and which compares with
   a net profit of EUR6 million in 2007.

The downgrade of the long-term deposit ratings to B3 from Ba2 has
been prompted by the downgrade of the BFSR to E.  Despite the fact
that BPP is not a systemically important institution, the B3
deposit rating incorporates one notch of uplift from the BCA of
Caa1 reflecting the current specific and conditional liquidity
support arranged by the Bank of Portugal to this institution.
There is, however, uncertainty as regards the likelihood of
support being maintained or expanded. It is not clear if the
government guarantee granted to the consortium of six credit
institutions will be rolled over, and therefore Moody's maintains
the ratings under review.  Moody's considers that government
support for this institution is temporary and has only been
rendered to ensure that there is no contagious effect to other
Portuguese financial institutions.  If the current support is
withdrawn this would likely lead to a further downgrade.
Conversely, if government support is extended to deposits
(ensuring that 100% deposits are guaranteed by the government,
beyond the EUR100,000 that are covered by the Portuguese deposit
guarantee scheme) the deposit ratings would likely be upgraded by
several notches.

Downgrades:

Issuer: Banco Privado Português

  -- Bank Financial Strength Rating, Downgraded to E from D
  -- LT Bank Deposit, Downgraded to B3 from Ba2

Outlook actions:

Issuer: Banco Privado Português

  -- Outlook, Changed to Review with Direction Uncertain from
     Review for Possible Downgrade

Moody's previous rating action on BPP was taken on November 13,
2008, when the BFSR was downgraded to D from D+ and the deposit
rating was downgraded to Ba2 from Baa3 as result of the increased
challenges the bank was facing to maintain a business model that
is highly dependent on developments in the capital markets.  The
ratings were placed under review for possible further downgrade as
Moody's remained concerned that the outlined challenges could put
further pressure on the bank's ratings in the short term.

Based in Lisbon, Portugal, Banco Privado Português, S.A. had non-
audited unconsolidated total assets of EUR2.9 billion as at
September 30, 2008.


=============
R O M A N I A
=============


* ROMANIA: Officials in Talks with IMF on Financing
---------------------------------------------------
Reuters reports the International Monetary Fund on Monday
confirmed Romanian officials are in Washington for talks with IMF
staff as sources in Bucharest said the country is in preliminary
discussions on IMF financing.

"A delegation of Romanian officials is visiting Washington D.C. on
March 2-4 for meetings with IMF staff," an IMF spokesman said in a
statement obtained by Reuters.

"The meetings are part of ongoing discussions on recent economic
developments and the challenges facing the Romanian economy," the
IMF spokesman added.

Eastern Europe economies face the challenges of a dearth of
international liquidity, exposure to vulnerable banks,
and collapsing export markets, according to the World Bank.

"The impact will now be felt strongly in the real economy as
defaults spread and foreclosures creep up, and as unemployment
rises sharply," Indermit Gill, World Bank Europe and Central Asia
Chief Economist, said.

Bloomberg News relates the International Monetary Fund said in
January the region will have a recession this year, forecasting
0.4 percent contraction.

Friday last week, Bloomberg News reported Romania central bank
adviser Eugen Radulescu said the country needs EUR10 billion
(US$13 billion) in external financing this year to cover its
current account and budget gaps,

Mr. Radulescu also said in an interview with the Money Channel in
Bucharest that a EUR24.5 billion aid package for eastern Europe
announced by various lenders would only cover part of the region's
needs, Bloomberg News disclosed.


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


ALTAY-STROY-KOM CJSC: Court Names Insolvency Manager
----------------------------------------------------
The Arbitration Court of Altayskiy appointed V. Dmitriyev as
Insolvency Manager for CJSC Altay-Stroy-Kom (TIN 5406322304)
(Construction).  The case is docketed under Case No. A03–
12138/07B.  He can be reached at:

         Post User Box 2004
         Central Postal Office
         650000 Kemerovo
         Russia

The Debtor can be reached at:

         CJSC Altay-Stroy-Kom
         Trakornaya St. 17
         Rubtsovsk
         658212 Altayskiy
         Russia


BACHATSKIY REINFORCED: Creditors Must File Claims by March 22
-------------------------------------------------------------
Creditors of OJSC Bachatskiy Reinforced Concrete Structures Plant
have until March 22, 2009, to submit proofs of claims to:

         A. Kachula
         Insolvency Manager
         Apt. 29
         Stroiteley Blvd.
         650060 Kemerovo
         Russia

The Arbitration Court of Kemerovskaya will convene on June 8,
2009, to hear bankruptcy proceedings.  The case is docketed under
Case No. A27–9202/2008–4.

The Debtor can be reached at:

         OJSC Bachatskiy Reinforced
         Concrete Structures Plant
         L .Shevtsovoy St. 56
         Bachatskiy
         Belovo
         652642 Kemerovskaya
         Russia


CENTRAL TELECOM: S&P Affirms Long-Term Corp. Credit Rating at 'B+'
------------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B+' long-
term corporate credit rating and 'ruA+' Russia national scale
rating on Russian telecommunications operator Central
Telecommunications Co. (OJSC).  The outlook is stable.

"The ratings remain constrained by the company's weak liquidity
position, limited revenue diversification, and increasing
competition, particularly in the rapidly expanding Moscow Oblast,"
said Standard & Poor's credit analyst Alexander Griaznov.

The ratings are supported by CTC's incumbent position, its vast
network in European Russia's central region, and its ownership of
last-mile Internet access to 6.7 million customers.

CTC's weak liquidity position remains the key rating constraint.
Its existing cash balances and committed credit facilities do not
fully cover its short-term debt.  Nevertheless, S&P considers the
company's proactive liquidity management to be positive because it
is negotiating with multiple banks to refinance its largest
maturity, scheduled for August 2009.  S&P also expect to see
positive free operating cash flow in 2009 and 2010.

CTC's effectiveness in optimizing its operations and improving
profitability is highlighted by an increase in its EBITDA margin
to 38% in 2008.  This rise in profitability stems from substantial
progress in headcount reduction, tighter spending controls, and
gradual expansion of value-added services.  S&P notes, however,
that revenue and EBITDA growth potential is limited, owing to
limited tariff increases for basic telephony services and rising
operational costs.

CTC has fairly limited revenue diversification, with about 67% of
revenues coming from traditional telephony.  The company's ability
to materially expand in broadband and other high-growth segments,
while withstanding the prospective expansion of leading
competitors, is subject to execution risk.  CTC's ability to
further streamline its operations, improve its network, and
prudently manage its financial flexibility remains crucial to
preserving its credit profile.

"The outlook is stable because S&P is of the opinion that CTC will
sustain its positive operating performance, continue to diversify
its revenue base, and enhance its profitability," said Mr.
Griaznov.  "This includes the assumption that the company will
continue to manage its liquidity proactively, avoiding risks to
its near-term liquidity position."


EVRO-LES LLC: Creditors Must File Claims by April 22
----------------------------------------------------
Creditors of LLC Evro-Les (TIN 1101024634) (Lumbering) have until
April 22, 2009, to submit proofs of claims to:

         M. Shishkin
         Insolvency Manager
         Gertsena St. 15
         610002 Kirov
         Russia

The Arbitration Court of Komi commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. A29–4981/2008.

The Debtor can be reached at:

         LLC Evro-Les
         Mikhaylovskaya St. 14
         Krasnozatonskiy
         Syktyvkar
         Russia


IRKUTSKAYA FUEL: Creditors Must File Claims by April 22
-------------------------------------------------------
Creditors of LLC Irkutskaya Fuel Company (TIN 3811090280, PSRN
1053811082555) have until April  22, 2009, to submit proofs of
claims to:

         V. Vederov
         Insolvency Manager
         Rozy Luksenburg St. 311/29
         664053 Irkutsk
         Russia

The Arbitration Court of Irkutskaya will convene at 10:00 a.m. on
Aug. 5, 2009, to hear bankruptcy proceedings.  The case is
docketed under Case No. A19–11709/08–8–37.

The Debtor can be reached at:

         LLC Irkutskaya Fuel Company
         Office 434
         Rozy Luksenburg St. 184
         664040 Irkutsk
         Russia


MERRILL LYNCH: Russian M&A Head Quits Post
------------------------------------------
The head of Merrill Lynch & Co.'s Russian mergers and acquisitions
business has left as part of the firm's round of layoffs in
Russia, Liam Vaughan at efinancialnews.com reports citing a person
familiar with the matter.

Dmitri Rozanov, who was based in London, joined the bank from J.P.
Morgan in 2006, the report says.

According to the report, Mr. Rozanov was part of the team that
advised steelmaker OAO Severstal on the US$775 million acquisition
of U.S. steel products manufacturer Esmark, and aluminum producer
Rusal on its acquisition of a 25% stake in rival OAO Norilsk
Nickel last year.

New York-based Merrill Lynch & Co. Inc. ---
http://www.merrilllynch.com/--- provides investment banking and
brokerage services to retail institutional, and government
clients.  The company operates in two segments: Global Investment
Management (institutional investors and governments) and Global
Wealth Management (private clients and small businesses).  The
company also owns 49% of asset manager BlackRock, which absorbed
Merrill Lynch's Investment Managers division, uniting Merrill's
equity and mutual fund offerings and BlackRock's fixed-income
prowess.

Bank of America acquired Merrill Lynch -- which reported more than
US$19 billion in losses in 2007 and 2008 -- for some US$50 billion
in stock in 2009.


NORTH-WEST TELECOM: S&P Affirms Corporate Credit Rating at 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB-' long-term corporate credit rating on Russian regional
telecommunications operator North-West Telecom (JSC).  The outlook
is stable.  The 'ruAA-' national scale rating was also affirmed.

"The ratings are constrained by the company's increasing financial
risk, which mainly stems from a peak in capital expenditures in
2008, weakening liquidity position, and exposure to foreign
exchange risk," said Standard & Poor's credit analyst Alexander
Griaznov.  "Limited revenue diversification and intense
competition in the broadband market also limit the ratings."

At the same time, the ratings continue to benefit from NWT's
leading position in traditional telephony, the improving
efficiency of its operations, and strengthening profitability.
They also take into account NWT's moderate debt levels and
historically prudent financial policy.

On Sept. 30, 2008, NWT's cash and short-term investments of
RUR1.8 billion and committed lines of about RUR1.5 billion covered
its total short-term debt of RUR2.8 billion.

S&P expects NWT's gradually improving operations, its commitment
to a moderate financial policy, and prudent debt and liquidity
management to continue to support the company's credit profile.

"Negative rating pressure could arise if the company's liquidity
position were to weaken further.  In particular, S&P expects the
company to issue long-term debt by the end of the first half of
2009 to secure refinancing of 2010 maturities," said Mr. Griaznov.

Any increase in regulatory or market risk or a substantial
weakening of NWT's financial profile could put pressure on the
ratings.

Ratings upside would require further strengthening of the
company's business position -- including improvements to revenue
diversification -- and a major shift to a long-term capital
structure.


PROKOP'EVSKIY METAL: Kemerovskaya Bankruptcy Hearing Set June 17
----------------------------------------------------------------
The Arbitration Court of Kemerovskaya will convene at 10:30 a.m.
on June 17, 2009, to hear bankruptcy supervision procedure on LLC
Prokop'evsk Metal Structures Plant.  The case is docketed under
Case No. A27–1037/2009,–4.

The Temporary Insolvency Manager is:

         A. Samokhin
         Office 406
         Prospect Oktyabrskiy 4
         Kemerovo
         Russia

The Debtor can be reached at:

         LLC Prokop'evsk Metal Structures Plant
         Kirova St. 1a
         Prokop'evsk
         653003 Kemerovskaya
         Russia


PROM-EXPRESS LLC: Creditors Must File Claims by April 22
--------------------------------------------------------
Creditors of LLC Prom-Express (TIN 4345033773, PSRN
1034316525176) (Paint, Lacquer Varnish Production) have until
April 22, 2009, to submit proofs of claims to:

         Yu. Rozhkov
         Insolvency Manager
         Volodarskogo St. 145a
         610002 Kirov
         Russia

The Arbitration Court of Kirovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A28–5312/2008–198/19.

The Debtor can be reached at:

         LLC Prom-Express
         Shchorsa St. 95/309
         Kirov
         Russia


SHAKHTO-STROITEL' LLC: Creditors Must File Claims by April 22
-------------------------------------------------------------
Creditors of LLC Shakhto-Stroitel' (Construction) have until April
22, 2009, to submit proofs of claims to:

         Ye. Bgatov
         Insolvency Manager
         Pereulok Gorodskoy 1
         653000 Prokop'evsk
         Russia

The Arbitration Court of Kemerovskaya will convene on July 1,
2009, to hear bankruptcy proceedings.  The case is docketed under
Case No. A27–5855/2008–4.


SOUTHERN TELECOM: S&P Puts 'B' Credit Rating on Negative Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'B' long-
term corporate credit rating and its 'ruA-' Russia national scale
and senior unsecured debt ratings on Russian telecommunications
operator Southern Telecommunications Co. (OJSC) on CreditWatch
with negative implications.

"The CreditWatch placement indicates that S&P could lower the
rating by one or more notches if the company is unable to
refinance some or all of its significant upcoming debt
maturities," said Standard & Poor's credit analyst Alexander
Griaznov.

In the second half of 2009, Southern Telecom will have to repay
more than Russian ruble (RUR) 11 billion (close to US$300 million)
in debt.  According to information received from the company,
Southern Telecom currently does not have sufficient cash and has
no undrawn committed lines to fully address these maturities.  It
is S&P's understanding that the company will turn to state-owned
banks for refinancing support.  However, S&P has not received
confirmation that refinancing has been arranged.

The key mitigator to Southern Telecom's weak liquidity is the
implied support of state-owned banks, which S&P assumes will
continue as long as the company remains majority owned by state-
owned holding company JSC Svyazinvest (not rated).  This is of
primary importance in S&P's credit assessment because S&P believes
that the probability of indirect state support for Southern
Telecom's liquidity is relatively high.  Should the company
experience difficulty in refinancing its debt, owing to the
turmoil in local capital markets, S&P think it will likely benefit
from the support of state-owned banks such as Sberbank (not rated)
or JSC VTB Bank (BBB/Negative/A-3; Russia national scale rating
'ruAAA'), which have historically been among Southern Telecom's
key creditors.

"We are likely to resolve the CreditWatch within the next three
months," said Mr. Griaznov.  "We will focus on Southern Telecom's
progress in refinancing, including negotiations and confirmation
of any refinancing arrangements with state-owned banks."


STROY-MONOLIT LLC: Court Names Temporary Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Voronezhskaya appointed N. Krasilnikov as
Temporary Insolvency Manager for LLC Stroy-Monolit (Construction).
The case is docketed under Case No. A14–16788–2008 51/20B.  He can
be reached at:

         Dorozhnaya St. 22B
         394038 Voronezh
         Russia

The Debtor can be reached at:

         LLC Stroy-Monolit
         Kholmistaya St. 32
         Voronezh
         Russia


TMK OAO: S&P Changes Outlook to Negative; Affirms 'B+' Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Russia-based steel pipe producer OAO TMK to negative from stable
on weakening pipe demand amid the global economic slowdown.  At
the same time, S&P affirmed the 'B+' long-term corporate credit
rating and lowered the Russia national scale rating to 'ruA' from
'ruA+'.

"The outlook revision reflects our view that demand for oil
country tubular goods and industrial pipes is deteriorating in
Russia and globally, which will limit deleveraging opportunities
for the company in 2009, and that TMK will continue to face
liquidity pressures," said Standard & Poor's credit analyst Andrey
Nikolaev.

Following the precipitous decline in hydrocarbon prices in the
second half of 2008 and material deterioration in the financial
market environment, oil & gas companies have made significant
downward revisions to their capital expenditure plans for 2009.
At the same time, the slowdown in the Russian economy should
impair the demand for pipes for industrial applications.  This
leads S&P to believe that TMK's volumes will remain flat or even
decrease in 2009 despite the full-year consolidation of U.S.
assets and its commissioning of new large diameter pipe and OCTG
capacity.

S&P believes lower prices and capacity utilization will put
pressure on TMK's margins in 2009.  This is likely to be partly
mitigated, however, by a substantial decrease in steel scrap
prices, which is the main cost component for the company, as well
as by increased vertical integration in steel production,
following the commissioning of the new electric arc furnace at the
end of 2008.

"We might lower the long-term corporate credit rating on TMK
within the next 12 months if the decline in pipe demand is even
more protracted than currently anticipated and leads to further
weakening of the company's credit metrics," said Mr. Nikolaev.

"We may also take negative rating actions if TMK cannot attract
planned long-term financing in the coming months and manage its
liquidity position."


URALSVYAZINFORM OJSC: S&P Puts 'BB-' Rating on Negative Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had placed its
'BB-' long-term corporate credit rating on Russian telecoms
operator Uralsvyazinform (OJSC) on CreditWatch with negative
implications.

"The rating action reflects our concerns over Uralsvyazinform's
liquidity management, which S&P consider overly aggressive," said
Standard & Poor's credit analyst Alexander Griaznov.

S&P believes the company will repay a RUR3 billion bond when it
falls due at the end of March from cash balances and short-term
committed credit lines.  However, S&P expected the company to
refinance with debt of a longer duration.

The ratings are constrained by the company's weak liquidity
profile, with significant short-term refinancing requirements; the
need to control rising costs and preserve operating profitability;
intense competition in the regional mobile telecoms market; and
regulatory risks.

They are supported by Uralsvyazinform's fair business profile,
which reflects its dominant position in the regional fixed-line
segment, resilient market share in mobile telephony, and rapidly
growing broadband segment.

Uralsvyazinform's weak liquidity position remains the key
constraint at the current rating level, which could be higher
given the group's resilient business.  The company is constantly
exposed to refinancing risk, as its cash levels are low and its
committed lines usually do not exceed repayments due in the
following six months.  Although S&P recognizes that the company's
situation is similar to that of many Russian companies that rely
solely on the immature domestic capital markets, S&P takes the
view that its liquidity management is very aggressive and
represents an important risk factor when credit conditions tighten
significantly.  Given the current sharp deterioration in the
global and Russian credit markets, S&P does not expect
Uralsvyazinform to be able to substantially strengthen its
liquidity profile in the next 12 months.

S&P expects to resolve the CreditWatch placement within the next
two months.  S&P will focus on the company's progress in
refinancing its debt.  S&P would probably lower the long-term
corporate credit rating to 'B+' if the company repays the bond due
in March with cash and available short-term committed bank lines.
S&P would probably affirm it at 'BB-' if the company raises
sufficient long-term funds to meaningfully improve its liquidity
position.


VIRAZH-STROY LLC: Creditors Must File Claims by April 22
--------------------------------------------------------
Creditors of LLC Virazh-Stroy (TIN 6318121671) (Construction)
have until April 22, 2009, to submit proofs of claims to:

         K. Markov
         Insolvency Manager
         Moskovskaya St. 85
         410012 Saratov
         Russia

The Arbitration Court of Samarskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A55–7917/2008.

The Debtor can be reached at:

         LLC Virazh-Stroy
         Zavodskoe Shosse 5
         443022 Samara
         Russia


* RUSSIA: Invested RUR400 Bln to Aid Domestic Banks
---------------------------------------------------
Russia has invested almost RUR400 billion (US$11.2 billion) in the
financial recovery of domestic banks, RIA Novosti reports citing a
Central Bank senior official.

The report relates that according to Mikhail Sukhov, director of
the credit institutions' licensing and financial recovery
department,"The state has invested, rather than spent, just under
400 billion rubles, including federal budget funds allocated to
the Deposit Insurance Agency and Central Bank loans, ensuring the
solvency of liabilities worth over 400 billion rubles".

Mr. Sukhov, as cited by the report, said the figure included
support provided by the Central Bank to the new owners of troubled
banks KIT-Finance, Svyaz-Bank and Globex.

On Feb. 10, 2009, citing RIA Novosti, the Troubled Company
Reporter-Europe reported that the Russian government will set
aside another US$40 billion to recapitalize the domestic banking
system.

"Currently, we are preparing another package worth US$40 billion
to support Tier 1 and Tier 2 capital - core capital, and
subordinated loans to banks, including for private banking
institutions," RIA Novosti quoted Russia's Finance Minister Alexei
Kudrin as saying.

The report disclosed Mr. Kudrin said the support of the
banking system was the key component of the government's anti-
crisis policy.

The government had granted Russian banks subordinated loans worth
RUR900 billion (US$25 billion) last year, the report recalled.


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


RENTA CORPORACION: Inks Syndicated Loan Refinancing Deal
--------------------------------------------------------
Reuters reports that Spanish property firm Renta Corporacion said
Friday last week that it has agreed to the terms refinancing its
syndicated loan.

Citing a spokeswoman, Reuters discloses that the company has
extended the loan to 2015 and does not have to make any payment
until 2011.

Reuters relates according to the spokeswoman, the company was able
to cut its debt to EUR316 million in 2008 (US$400.5 million) from
EUR695 million a year ago.

As reported in the Troubled Company Reporter-Europe on Jan. 5,
2009, Renta had reached an initial refinancing deal with its
creditors on a EUR500 million (US$709 million) syndicated loan.

According to Reuters, without the waiver, Renta is due to pay the
banks, lead by Santander (SAN.MC) and backed by BBVA (BBVA.MC),
Eurohypo and Fortis (FOR.BR), a first payment of around EUR40
million in early 2010 with increasing payments due over the next
three years.

In a TCR-Europe report on Oct. 8, 2008, Reuters recalled Renta
asked creditors on Oct. 3, 2008, to change the terms of a waiver
it won in August on the syndicated loan.

In a statement to the Spanish stock exchange, the company,
as cited by Reuters, said it wanted "to adjust the covenants and
other terms envisaged in the syndicated loan to the exceptional,
transitory state of the markets, mainly the financial markets,
which have significantly deteriorated since then (August)."

Headquartered in Barcelona, Renta Corporacion Real Estate SA
-- http://www.rentacorporacion.com-- is principally engaged in
the real estate sector, with interests in the purchase and sale of
lands and buildings.  The Company is structured in three main
areas: Residential, acquisition of residential buildings for
refurbishment and sale; Office, acquisition of large urban
buildings, usually offices or industrial buildings, for
transformation and sale; Land, acquisition of the large-scale
property complexes for development and sale.  Its major
acquisitions are located in Spain (Barcelona, Madrid, Seville,
Malaga and Palma de Mallorca), France (Paris), the United Kingdom
(London), Germany (Berlin), and the USA (New York).  As of the end
of fiscal year 2007, the Renta Corporacion Real Estate SA is a
part of the group comprised of 22 enterprises.


===========
S W E D E N
===========


* SWEDEN: Economy Fell 4.9% Annually in 4th Qtr on Slowing Export
-----------------------------------------------------------------
Sweden's gross domestic product fell an annual 4.9 percent in the
fourth quarter, adjusted for the number of working days, from a
revised 0.1 decline in the previous quarter, as demand for its
exports slumped, Bloomberg News reported citing data from
Statistics Sweden.

The country's GDP fell a seasonally adjusted 2.4 percent from the
previous quarter, marking the fourth consecutive three- month
period of falling production, the report said.

According to the report, the Swedish government will increase
spending by 1.3 percent of gross domestic product this year to
ease the recession.

The report said measures include:

   --- slashing income taxes;

   --- cutting payroll and corporate taxes; and

   --- increasing spending on infrastructure,
       education and welfare.

The government has also offered to inject as much as SEK50 billion
(US$5.6 billion) in the country's banks, the report said.


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


AGEMA JSC: Creditors Must File Proofs of Claim by March 18
----------------------------------------------------------
Creditors owed money by JSC Agema are requested to file their
proofs of claim by March 18, 2009, to:

         Via Remorino 4
         6648 Minusio
         Switzerland

The company is currently undergoing liquidation in Minusio.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 27, 2009.


EDP ASSISTANCE: Deadline to File Proofs of Claim Set March 18
-------------------------------------------------------------
Creditors owed money by EDP Assistance Ltd are requested to file
their proofs of claim by March 18, 2009, to:

         Birsigstrasse 2
         4054 Basel
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 30, 2009.


EDUTREND LLC: Creditors Have Until March 18 to File Claims
----------------------------------------------------------
Creditors owed money by LLC Edutrend are requested to file their
proofs of claim by March 18, 2009, to:

         Plutschow Remi
         Rosengartenweg 2
         5604 Hendschiken
         Switzerland

The company is currently undergoing liquidation in Zofingen.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Nov. 19, 2007.


ESTA LLC: Proof of Claim Filing Deadline is March 18
-----------------------------------------------------
Creditors owed money by LLC Esta are requested to file their
proofs of claim by March 18, 2009, to:

         LLC Auconia
         Bahnhofstrasse 11
         6340 Baar
         Switzerland

The company is currently undergoing liquidation in Baar.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 7, 2009.


JOST + PARTNER: Creditors' Proofs of Claim Due by March 18
----------------------------------------------------------
Creditors owed money by LLC Jost + Partner are requested to file
their proofs of claim by March 18, 2009, to:

         Rudolf Jost
         Jupiterstrasse 29/627
         3015 Bern
         Switzerland

The company is currently undergoing liquidation in Bern.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 28, 2009.


KINDER-ARCHE LLC: March 18 Set as Deadline to File Claims
---------------------------------------------------------
Creditors owed money by LLC Kinder-Arche are requested to file
their proofs of claim by March 18, 2009, to:

         Erno Kiss
         Liquidator
         Opfikonerstrasse 19
         8304 Wallisellen
         Switzerland


The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Oct. 1, 2004.


LIGOSSA JSC: Creditors Must File Proofs of Claim by March 18
------------------------------------------------------------
Creditors owed money by JSC Ligossa are requested to file their
proofs of claim by March 18, 2009, to:

         Bruno Dallo
         JSC Scobag Privatbank
         Gartenstrasse 56
         4052 Basel
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 28, 2009.


ROBRU HEBEBUHNEN: Deadline to File Proofs of Claim Set March 18
---------------------------------------------------------------
Creditors owed money by LLC Robru Hebebuhnen are requested to file
their proofs of claim by March 18, 2009, to:

         Robert Defeminis
         Comercialstrasse 19
         7000 Chur
         Switzerland

The company is currently undergoing liquidation in Trimmis.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 23, 2009.


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


INTERFOTO LLC: Creditors Must File Claims by March 15
-----------------------------------------------------
Creditors of Joint Ukrainian-Polish LLC Interfoto (EDRPOU
23250780) have until March 15, 2009, to submit proofs of claim to:

         O. Ischuk
         Insolvency Manager
         Dubnovskaya St. 71/3
         Lutsk
         Ukraine

The Economic Court of Volin commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 1/43-b.

The Court is located at:

         The Economic Court of Volin
         Volia Avenue 54
         Lutsk
         Volin
         Ukraine

The Debtor can be reached at:

         JOINT Ukrainian-Polish Llc Interfoto
         Druzhba Avenue 8
         Novovolinsk
         45400 Volin
         Ukraine


LAREN LLC: Creditors Must File Claims by March 15
-------------------------------------------------
Creditors of LLC Laren (EDRPOU 35489823) have until March 15,
2009, to submit proofs of claim to:

         V. Lifar
         Insolvency Manager
         Office 177
         L. Gavro St. 11-d
         Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 23/11-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Laren
         Tchokolovsky Boulevard 19
         03186 Kiev
         Ukraine


NADRA BANK: S&P Downgrades Long-Term Issuer Credit Rating to 'SD'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term issuer credit rating on Ukraine-based Nadra Bank to 'SD' from
'CC', indicating a selective default, and removed all ratings from
CreditWatch with negative implications, where they were placed on
Feb. 13, 2009.

According to Standard & Poor's definition, a selective default is
representative of an issuer defaulting selectively -- that is,
defaulting on one issue or class of issues, but honoring others in
a timely fashion.  S&P's default definitions include payment
defaults on both rated and unrated financial obligations.

"Nadra reports that on Feb. 10, 2009, temporary administration was
introduced at Nadra for one year, as was a moratorium on credit
obligations for six months to stabilize Nadra's financial
condition," said Standard & Poor's credit analyst Annette Ess.

S&P understands that Nadra has missed payments on some deposits
and letters of credit.  In S&P's view, Nadra's liquidity has been
placed under severe pressure by the currently tough market
conditions prevailing in Ukraine, as well as by prolonged
political criticism of Nadra.

"We consider Nadra's current liquidity to be contracting quickly,"
said Ms. Ess.

Nadra's unrestricted cash reportedly now stands below Ukrainian
hryvnia 150 million -- which is far below the US$261 million of
foreign debt outstanding that S&P understands to be maturing in
2009 -- while corporate and retail deposit withdrawals continue.
S&P understands that Nadra has not yet received any funds from a
UAH3 billion credit line that was set up by the National Bank of
Ukraine; S&P understands that the agreement for the credit line
was signed on Jan. 20, 2009, but that it has been delayed due to a
dispute which has yet to be resolved in court.

With reported 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.  S&P understands that the pending acquisition of
Nadra by GroupDF, owned by a Ukrainian businessman Dmytro Firtash,
is uncertain in current market conditions.

Nadra's asset quality appears to be deteriorating rapidly, with
current problem loans estimated by Nadra at 15%-20%, largely
driven by its deteriorating mortgage portfolio.  S&P expects
further asset quality deterioration in 2009, given poor
macroeconomic prospects.  This could be triggered by a further
weakening of the hryvnia.  S&P understands Nadra's foreign
currency portfolio to currently represent 60% of total loans.  As
many consumers and small and midsize enterprises have no natural
hedge, the recent sharp weakening of the Ukrainian hryvnia and
rising unemployment impair the repayment ability of many
borrowers.

"We may revise the ratings on Nadra if it restores and sustains
its repayment capacity and services all its debt obligations on a
timely basis," said Ms. Ess.

S&P will continue to closely monitor the situation at the bank,
with a particular focus on liquidity.


PROMAKS LLC: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------
The Economic Court of Kiev commenced bankruptcy supervision
procedure on LLC Promaks (EDRPOU 32070016).

The Temporary Insolvency Manager is:

         D. Salatiuk
         Office 127
         Verbitsky St. 28
         02121 Kiev
         Ukraine

The Court is located at:

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


The Debtor can be reached at:
         LLC Promaks
         Klemanskaya St. 3
         02081 Kiev
         Ukraine


QUEST-LTD LLC: Creditors Must File Claims by March 15
-----------------------------------------------------
Creditors of LLC Quest-Ltd (EDRPOU 35723129) have until March 15,
2009, to submit proofs of claim to:

         O. Tomashevsky
         Insolvency Manager
         Office 72
         Rabochaya St. 7
         Nikolayev
         Ukraine

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 5/49/09.

The Court is located at:

         The Economic Court of Nikolayev
         Admiralskaya St. 22-a
         54009 Nikolayev
         Ukraine

The Debtor can be reached at:

         LLC Quest-Ltd
         Slavianskaya St. 70
         Nikolayev
         Ukraine


ROST LLC: Creditors Must File Claims by March 14
------------------------------------------------
Creditors of LLC Agricultural Firm Rost (EDRPOU 31767026) have
until March 14, 2009, to submit proofs of claim to:

         V. Pogorelo
         Insolvency Manager
         Umova St. 34/1
         83008 Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 42/79b.

The Court is located at:

         The Economic Court of Donetsk
         Artem St. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Agricultural Firm Rost
         Lenin St. 56
         Truzhenka
         Volodarsky
         87011 Donetsk
         Ukraine


UKRAINIAN CHEMICAL: Creditors Must File Claims by March 14
----------------------------------------------------------
Creditors of OJSC Ukrainian Chemical Service (EDRPOU 31721196)
have until March 14, 2009, to submit proofs of claim to:

         LLC On-Line Capital
         Insolvency Manager
         Shota Rustaveli St. 16
         01001 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. 50/351.

The Court is located at:

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

The Debtor can be reached at:

         OJSC Ukrainian Chemical Service
         Building 1
         40 Years of October St. 120
         Kiev
         Ukraine


UKRAINIAN GAZ: Court Starts Bankruptcy Supervision Procedure
-------------------------------------------------------------
The Economic Court of Kiev commenced bankruptcy supervision
procedure on Joint Stock Company Ukrainian Gaz Building Firm
(EDRPOU 14277604).

The Temporary Insolvency Manager is:

         D. Salatiuk
         Office 69
         Yuzhnaya St. 28
         04214 Kiev
         Ukraine

The Court is located at:

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

The Debtor can be reached at:

         JOINT Stock Company Ukrainian Gaz Building Firm
         Building 2
         O. Pirogovsky St. 19
         03110 Kiev
         Ukraine


* UKRAINE: World Bank to Provide US$750 Mln Loan with Conditions
----------------------------------------------------------------
The World Bank is willing to provide Ukraine with a US$750 million
loan on the condition the country agrees to change the way it
regulates companies and banks, including more effective bankruptcy
procedures, Daryna Krasnolutska at Bloomberg News reported.

According to the report, World Bank Country Director for Ukraine,
Belarus and Moldova Martin Raiser said the Washington-based lender
is seeking to help stabilize Ukraine's banking system and will
assist the government in narrowing the 2009 budget deficit.

"We will provide money to the government to recapitalize the banks
and also our funds can be used in the process of liquidation of
failed banks," Mr. Raiser told the news agency in an interview in
Kiev.  "The parliament needs to change some laws and once the
legislation is in place then we will feel comfortable about
providing our money."

Citing Mr. Raiser, the report said the World Bank's 17-year loan
for Ukrainian lenders will probably be disbursed in two
installments of roughly equal size, the first part of which may
come as early as May.

The report recounted Ukraine's central bank, Natsionalnyi Bank
Ukrainy, has taken over eight banks since October because of
liquidity problems, while one bank asked the government for a
bailout.


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


CANDOVER INVESTMENTS: Cancels EUR1 Bil. Investment in Equity Fund
-----------------------------------------------------------------
Candover Investments Plc has canceled a commitment to invest
EUR1 billion (US$1.26 billion) in its latest private equity fund,
Bloomberg News reports.

The private equity firm stopped investing in the fund as a lack of
cash had severely curtailed its ability to invest, Reuters cited
the firm's main backer as saying.

"The value of our portfolio has been severely impacted by the
decline in multiples of public market comparables.  In addition,
our position has been affected by a lack of realisations caused by
the dramatic effect of the global economic crisis.  While we are
not in breach of any financial covenants, we will be engaging in
discussions with all our lenders in order to re-establish our
financial flexibility for the longer term," Candover Chairman
Gerry Grimstone said in a statement posted on the company's Web
site.

The move came as the firm incurred a net loss of GBP212.56 million
in 2008 compared with a profit of GBP134.94 million in 2007.

The company has appointed Merrill Lynch and Lexicon to advise on
its options, Reuters said.

Candover Investments PLC -- http://www.candoverinvestments.com/
-- is an investment trust listed on the London Stock Exchange
since 1984.  It invests in buyouts across Europe via funds managed
by its wholly owned subsidiary, Candover Partners, a European
private equity house.

As well as investing money on behalf of Candover Investments plc,
Candover raises substantial funds for buyout investment from third
parties such as pension funds, insurance companies, endowments,
charities and other professional investors.


CARLSBRO ELECTRONICS: Appoints Joint Administrators from PKF
------------------------------------------------------------
Charles William Anthony Escott and Ian Christopher Schofield of
PKF (UK) LLP were appointed joint administrators of Carlsbro
Electronics Ltd. on Feb. 13, 2009.

The company can be reached at:

         Carlsbro Electronics Ltd.
         Mazars House
         Gelderd Road
         Gildersome
         Leeds
         LS27 7JN
         England


DECO 11-UK: S&P Retains 'D' Rating on Class F Notes
---------------------------------------------------
Standard & Poor's Ratings Services said that although the interest
shortfall on the class F notes issued by DECO 11-UK Conduit 3 PLC
has been repaid and the notes are now current, due to other
concerns the 'D' rating remains unchanged.

S&P lowered the rating to 'D' on Nov. 3, 2008 due to the interest
shortfall experienced on the class F notes on the October 2008
interest payment date and because S&P considered that an ultimate
loss on the Paladru loan would likely affect the class F notes.

The Paladru loan has been in breach of the loan-to-value covenant
since April 2008 when a revaluation of the property resulted in an
LTV ratio of 168% (and a breach of the LTV covenant of 89%).  The
loan went into special servicing as a result.  The October 2008
interest shortfall occurred because special servicing fees
relating to the Paladru loan were deemed irrecoverable and
consequently not drawn from the liquidity facility.

S&P notes that on the January 2009 IPD the shortfall was repaid
and the class F notes are now current.  Moreover, S&P understands
that the issuer has surplus funds of approximately GBP140,000.
S&P was informed that this surplus has accumulated as a result of
a day count mismatch for the October 2008 and the January 2009
IPDs, combined with a change in interest rates.

Nonetheless, S&P understands that excess amounts will be made
available to the class X noteholders.  S&P therefore expects that
there may be a further interest shortfall on the class F notes at
the next IPD.  In view of this and, more significantly, in view of
S&P's expectation that a principal loss will likely be experienced
on a workout of this loan given the LTV ratio, the rating on the
class F notes remains unchanged.


COURTS PLC: Creditors Gets Payout After Four Years
--------------------------------------------------
Richart Fletcher at The Daily Telegraph reported that creditors of
furniture retailer Courts Plc, which went into administration four
years ago, will get as little as 0.04p for GBP1 they are owed.

The report relates that according to a KPMG report, unsecured
creditors will only collect GBP600,000 of the GBP94 million that
are owed, while secured creditors will receive more than GBP70
million.

The report discloses that before Courts Plc was placed into
liquidation, KPMG earned GBP23.7 million in fees and expenses as
administrator.  The accountants have netted a further GBP483,000
from the liquidation, the report notes.

Mick McLoughlin and Chris Laverty, partners at KPMG, were
appointed joint administrators of the company by the High Court on
November 30, 2004.  They were appointed joint liquidators of the
company by the court on August 23, 2007.


DIAMONDS AND PEARLS: In Administration; KPMG Appointed
------------------------------------------------------
Myles Halley and Richard Philpott were appointed Administrator to
Diamonds and Pearls Limited, a high street fashion jewellery
retailer.

The company has 91 high street stores with the Head Office based
in Bedford and employs over 300 people.

The administrator is currently trading the majority of the stores
while it considers the options open.

"We intend to trade the business while we seek a buyer as a going
concern, however we envisage that certain of the loss making
stores will be closed in the coming days and this is likely to
result in a number of redundancies," Mr. Halley said.


EBTM: Asks Court to Appoint Administrators
------------------------------------------
Lisa Berwin at Retail Week reports that EBTM on Monday suspended
its shares and applied to the High Court to appoint administrators
for the business.

In a March 2 statement EBTM, as cited by the report, said: "The
board continued to evaluate options to maintain value in EBTM plc
but it has now concluded that this is not possible."

According to Drapers' Jessica Price Brown, EBTM's AIM listing will
be cancelled from April 1.

On March 2, 2009, citing Reuters' Mark Potter, the Troubled-
Company Reporter-Europe reported that EBTM applied to the High
Court Friday last week to put its main operating businesses,
Mockingbird Distribution Ltd and Everything But The Music Ltd,
into administration after failing to raise funds or sell the group
amid the economic downturn.


GODWIN DEVELOPMENTS: Taps Joint Administrators from PKF
-------------------------------------------------------
Edward Terence Kerr and Ian James Gould of PKF (UK) LLP were
appointed joint administrators of Godwin Developments Ltd. on
Feb. 16, 2009.

The company can be reached at:

         Regent House
         Clinton Avenue
         Nottingham
         NG5 1AZ
         England


HOWARD STANLEY: Appoints Joint Administrators from PKF
------------------------------------------------------
Edward Terence Kerr and Ian James Gould of PKF (UK) LLP were
appointed joint administrators of Howard Stanley Pratt Ltd.
on Feb. 16, 2009.

The company can be reached at:

         Regent House
         Clinton Avenue
         Nottingham
         NG5 1AZ
         England


JOHN BLACKBURN: KPMG Named Joint Administrators
-----------------------------------------------
Paul Andrew Flint and Brian Green of KPMG LLP were appointed joint
administrators of John Blackburn Group Ltd. on Feb. 16, 2009.

The company can be reached at:

         John Blackburn Group Ltd.
         Stennard Island Chantry Bridge,
         Wakefield
         WF1 5DL
         England


LEEK FINANCE: S&P Puts 'BB'-Rated Notes on Negative Watch
---------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its ratings on the junior classes of notes issued by Leek Finance
Number Seventeen PLC, Leek Finance Number Eighteen PLC, and Leek
Finance Number Nineteen PLC (Leek 17, 18, and 19).

Unlike the earlier Leek deals, Leek 17, 18, and 19 have
experienced losses above S&P's nonconforming index.  Arrears in
these transactions are also higher than in other Leek deals with a
similar seasoning.

As of the December investor report, losses were 0.40% for Leek 17,
0.50% for Leek 18, and 0.73% for Leek 19.  Total delinquencies
including repossessions were 23.76% for Leek 17, 21.44% for Leek
18, and 21.29% for Leek 19.  Because most of the mortgages in
these deals were originated in 2005 or 2006, recent house price
declines have resulted in high loan-to-value ratios in the pools.
This could lead to higher-than-average losses for loans on
properties that have been repossessed and could lead to an
increase in the number of loans that ultimately default.

While in each transaction the nonamortizing reserve fund has
contributed to some credit enhancement increases, it has not, in
S&P's view, been sufficient to mitigate pool deterioration.

S&P will continue to monitor the performance of these transactions
using the most recent loan-level data for a full credit and cash
flow analysis.  S&P expects to publish the results of its
analysis, together with any effects on the ratings on any of the
notes, in due course.

When S&P reviewed Leek 17, 18, and 19, S&P also reviewed the
classes issued by Leek Finance Number Sixteen PLC, Leek Finance
Number Twenty PLC, and Leek Finance Number Twenty One PLC.  The
ratings in these deals are currently unaffected.

                           Ratings List

              Ratings Placed on Creditwatch Negative

                 Leek Finance Number Seventeen PLC

      GBP379.0 Million, EUR558.1 Million, and US$697.0 Million
                Mortgage-Backed Floating-Rate Notes

                                   Rating
                                   ------
          Class      To                            From
          -----      --                            ----
          Ba         A/Watch Neg                  A
          Bc         A/Watch Neg                  A
          Cc         BBB+/Watch Neg               BBB+

                Leek Finance Number Eighteen PLC
     EUR286.7 Million, GBP307.6 Million, and GBP1,025 Million
                  Mortgage-Backed Floating Notes

                                   Rating
                                   ------
          Class       To                            From
          -----       --                            ----
          Ma          AA/Watch Neg                 AA
          Mc          AA/Watch Neg                 AA
          Ba          A/Watch Neg                  A
          Bc          A/Watch Neg                  A
          Ca          BBB/Watch Neg                BBB
          Cc          BBB/Watch Neg                BBB

Leek Finance Number Nineteen PLC EUR283.1 Million, GBP192 Million,
        US$879.1 Million Mortgage-Backed Floating-Rate Notes

                                   Rating
                                   ------
          Class       To                            From
          -----       --                            ----
          Ma          AA/Watch Neg                 AA
          Mc          AA/Watch Neg                 AA
          Ba          A/Watch Neg                  A
          Bc          A/Watch Neg                  A
          Ca          BBB/Watch Neg                BBB
          Cc          BBB/Watch Neg                BBB
          Da          BB/Watch Neg                 BB
          Dc          BB/Watch Neg                 BB


MOSAIC FASHIONS: In Administration; Deloitte Appointed
------------------------------------------------------
Neville Kahn, Lee Manning and Phil Bowers of Deloitte, the
business advisory firm, have been appointed Joint Administrators
over Mosaic Fashions Limited, Mosaic Fashions Finance Limited and
a number of other Group companies, including:

    * Warehouse Fashion Limited
    * Oasis Stores Limited
    * Coast Stores Limited
    * Karen Millen Limited
    * Anoushka G Fashions Limited
    * Principles Retail Limited
    * The Shoe Studio Group

Phil Bowers, Joint Administrator, commented: "As part of the
restructuring of the group we have concluded an immediate sale of
the UK business and assets of Warehouse, Oasis, Coast, Karen
Millen, Anoushka G and the overseas shares of Karen Millen to
Aurora Fashions, a new company jointly owned by Kaupthing bank and
former management of Mosaic.  This sale secures the future of
these brands and provides funding going forward.  The
restructuring means 8,700 jobs in these businesses have been
rescued by Aurora Fashions, who will continue to trade in 647
concessions and 268 stores across the UK."

It is the Administrators' intention to trade the remaining two
entities, Principles and The Shoe Studio.  The Group had
previously engaged advisors to sell these entities and the
Administrators are already in discussions with various parties
interested in purchasing the assets.  The Principles brand employs
over 2,300 staff and trades from over 400 outlets of which 94 are
single stores and the remainder concession outlets.  The Shoe
Studio brand employs 1,870 staff and trades from 13 single stores
and 270 concessions and has the largest geographical footprint of
any UK Shoe retailer.  The Company also trades from its own
branded website.


PETER NEWMAN: Taps Joint Administrators from BDO Stoy Hayward
-------------------------------------------------------------
William Matthew Humphries Tait and David Harry Gilbert of BDO Stoy
Hayward were appointed joint administrators of Peter Newman Shoes
Ltd. on Feb. 16, 2009.

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

         55 Baker Street
         London
         W1U 7EU
         England


PRELUDE EUROPE: S&P Cuts Rating on AU$40 Mln Notes to 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services took credit rating actions on
seven European synthetic collateralized debt obligation tranches
following rating changes on the underlying collateral in those
deals.

Specifically, for these CDO transactions, the ratings on:

   –- One tranche was lowered and placed on CreditWatch negative;

   –- Three tranches were lowered; and

   –- Three tranches were lowered and removed from CreditWatch
      negative.

                        Ratings List

        Rating Lowered and Placed on Creditwatch Negative

                      Prelude Europe CDO Ltd.
   AU$40 Million Credit-Linked Notes Series 2005-4 (Credit Sail)

                            Rating
                            ------
                  To                    From
                  --                    ----
                  BB+p/Watch Neg        BBB-p

                         Ratings Lowered

                    Momentum CDO (Europe) Ltd.
   EUR10.3 Million Repackaged MBIA Global Funding LLC Variable
                    Coupon Notes Series 2005-8

                              Rating
                              ------
                    To                    From
                    --                    ----
                    BBB+                   AA

                       Sceptre Capital B.V.
     EUR40 Million CMS-Linked Repackaged "PowerTranche" Notes
                          Series 2006-5

                             Rating
                             ------
                    To                    From
                    --                    ----
                    BB-                    BB

                   Corsair (Jersey) No. 4 Ltd.
      US$150 Million Floating-Rate Step-Down Secured Portfolio
                  Credit-Linked Notes Series 2

                             Rating
                             ------
                    To                    From
                    --                    ----
                    BBB+                    A-

      Ratings Lowered and Removed from Creditwatch Negative

                             ELM B.V.
          EUR1 Billion Perpetual Step-Up Notes Series 44

                         Rating
                         ------
                To                    From
                --                    ----
                A-                     A/Watch Neg

                             ELM B.V.
      AU$300 Million Perp Fixed-Rate Step-Up Notes Series 105

                         Rating
                         ------
                To                    From
                ----
                A-                     A/Watch Neg

                             ELM B.V.
    AU$450 Million Perp Floating-Rate Step-Up Notes Series 106

                         Rating
                         ------
                To                    From
                --                    ----
                A-                     A/Watch Neg


ROYAL BANK: Chairman Hampton Gets 5.17 Mln Shares on Top of Pay
---------------------------------------------------------------
Jon Menon at Bloomberg News reports The Royal Bank of Scotland
Group Plc has awarded Chairman Philip Hampton 5.17 million shares
in addition to his GBP750,000- (US$1.1 million) annual salary.

The shares were valued at 29 pence at the time of the transaction,
or about 1.5 million pounds, and will vest in three years, the
report says citing RBS in a Regulatory News Service statement.

The report states the payout comes as the government places
pressure on former RBS Chief Executive Officer Fred Goodwin to
return part of his GBP650,000 annual pension.

As reported in the Troubled Company Reporter-Europe on Feb. 27,
2009, Bloomberg News said RBS is taking legal advice on Mr.
Goodwin's GBP650,000 (US$924,000) annual pension.

Reuters related RBS confirmed reports that Mr. Goodwin was already
drawing the pension from his GBP16 million retirement pot.

"RBS is taking further legal advice in respect of certain aspects
of Sir Fred Goodwin's contractual arrangements," and continues to
discuss the position with the U.K. Financial Investments Ltd., RBS
spokesman Neil Moorhouse said as cited by Bloomberg News.

According to the report, the Treasury, through its bank holding
company U.K. Financial Investments, said in a Feb. 25 statement it
has been "vigorously pursuing" with the new chairman of RBS how it
can claw back "some or all of this pension."  The bank has agreed
to review Mr. Goodwin's entitlement and whether there is a legal
basis to challenge it, the Treasury said in the statement obtained
by the news agency.

                    Additional Gov't Funding

The Wall Street Journal earlier reported the U.K. government
agreed to provide RBS with as much as GBP25.5 billion (US$36.64
billion) in capital and insure GBP300 billion of the bank's
assets.

The move, according to the Journal, could increase the
government's economic stake in the bank to as much as 95% from the
current 70%.

The recent help given to RBS is part of U.K.'s GBP500 billion
bank-insurance plan announced in January.

Under the funding agreement, the Journal disclosed RBS will pay a
fee of GBP6.5 billion to participate in the insurance plan.

The Journal said the bank will also absorb the first GBP20 billion
in losses on the GBP300 billion asset pool before the insurance
kicks in, and will be responsible for 10% of subsequent losses.

RBS will also pay the insurance fee, and raise an additional GBP13
billion in fresh capital, by issuing special "B" shares to the
government, the Journal said.

                           Tax Losses

Friday last week, Bloomberg News reported Chancellor of the
Exchequer Alistair Darling forced RBS to give up the right to
claim its current losses against future taxes in the U.K.

According to Bloomberg News, in exchange for guaranteeing GBP325
billion of RBS assets, the Treasury required the bank to forgo
unspecified allowances that normally could be used to reduce its
payments and also the right to count losses against taxes owed.

RBS "agreed for a number of years not to claim certain U.K. tax
losses and allowances, meaning that when they do return to
profitability, they will not be able to benefit from the losses
accrued in the intervening period," Bloomberg News quoted
Chancellor Darling as saying.

RBS, according to Bloomberg News, paid GBP16 billion of corporate
tax from 1998 to 2007, about 80 percent of the cost of its
government-funded recapitalization.

                           About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.


SAPHIR FINANCE: S&P Cuts Rating on EUR40 Mln Notes to 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB+' from 'A-' and
removed from CreditWatch negative its credit rating on the
EUR40 million Spring Sand 10 years non-call five years step-up
credit-linked notes series 2006-10 issued by Saphir Finance PLC.

These notes have a feature in which the loss threshold increases
at a predetermined point in the future.  In this transaction, the
subordination increases after five years.  S&P assesses the
likelihood of breaching the threshold at different points in time
when S&P assigns the rating.

Following negative rating migration in the underlying reference
portfolio, the probability of default is now consistent with a
'BB+' rating.


WHITBREAD PLC: Continues to Report Negative Sales
-------------------------------------------------
Whitbread Plc disclosed that since the start of 2009, it was
difficult to establish any clear trend, as group like-for-like
sales have been predominantly negative, particularly due to lower
occupancy in Premier Inn.

Revenue at outlets open at least a year declined 1.5 percent in
the quarter, Bloomberg News cited Finance Director Chris Rogers as
saying during a conference call.

The company recorded a 4.9 percent sales growth in the 50 weeks
ended February 12, 2009.  In the 39 weeks ended November 27, 2008,
the company reported a 6.7% growth of sales.

"Our concern for Whitbread is not what has gone, but what might
be.  We believe that the budget model might prove to be more
vulnerable in a recession than many expect," Nick Batram, an
analyst at KBC Peel Hunt was quoted by Bloomberg News as saying.

UK based Whitbread PLC -- http://www.whitbread.co.uk/investors/--
is a hotel and restaurant company operating businesses in the
budget hotels and restaurant sectors.  Its brands include Premier
Inn, Beefeater, Table Table, Brewers Fayre, Taybarns and Costa
Coffee.


* KPMG Survey Says UK Businesses Sees Gloomy Economic Outlook
-------------------------------------------------------------
British businesses are well and truly in the doldrums, with scant
optimism for an early recovery, according to KPMG's latest
quarterly National Business Confidence Survey.

A massive 81 percent of senior executives questioned by Opinion
Leader Research on behalf of KPMG now view the prospects for the
UK economy as either 'bad' or 'very bad' – a significant fall in
confidence from the final quarter of 2008, when 60 percent claimed
that prospects were poor.

Fears that the recession may prove to be longer and deeper than
first anticipated were also voiced by respondents, with 87 percent
believing that the outlook for the British economy will only get
worse before it gets better.  However, there was a faint glimmer
of optimism to be found as two thirds of businesses believe that
the worst of the crisis will be over in one to two years time.
Conversely, a total of 16 percent predict that the crisis will
last for another two years or more.

Businesses are also increasingly feeling the pinch, with a third
(31 percent) admitting that they have experienced financing
difficulties over the last 12 months - this compares with only 16
percent who claimed to have encountered such problems in the final
quarter of 2008.  There is also indication that recent measures
announced by the Government to help stimulate bank lending do not
yet appear to have cascaded down to UK plc, with more than half
(51 percent) of businesses experiencing tighter borrowing
requirements and 41 percent seeing an increase in the cost of
credit.

Malcolm Edge, head of markets for KPMG in the UK, commented:
"There are very few, if any, chinks of light to be found in the
latest Business Confidence survey.  The fact that only one in ten
businesses think we've hit rock bottom is indicative that many
fear worse is yet to come."

Mr. Edge continued: "It's certainly no surprise that the brakes
remain firmly on corporate expenditure while companies seek to cut
costs in the wake of the economic crisis; and once again, it is
employment costs that remain under the spotlight.  Over the last
twelve months, we have seen a steady increase in the number of
firms implementing recruitment freezes or embarking on redundancy
programs in the wake of the downturn.  However, for the first
time, we are also seeing a large proportion of companies looking
at the flexibility of their workforce as something that could
potentially result in cost savings.  Almost two thirds (60
percent) are now actively looking at this as an issue, which may
indicate that businesses are realizing that redundancies are not
the only option available to them."

As businesses continue to seek means of tackling the recession
head on, it appears that the way in which companies are making
strategic decisions is changing.  Indeed, a total of 89 percent of
firms have already changed their approach to strategic planning in
response to the economic crisis, with more than half (54 percent)
now considering new options for the future of their business.

Mr. Edge explained: "In addition to cost reduction and cash
generation strategies, quantifying the impact of the risks
associated with this economic downturn is absolutely mission-
critical for businesses right now.  Certainly in our day-to-day
conversations with clients, we are asking them to consider more
extreme situations than ever before – for instance, what would
happen to your business if your sales fell by 50 percent? What if
your biggest supplier became insolvent? Some of our clients may
think we are being overly dramatic, but in fact we are only asking
them to model scenarios that are actually happening across the
marketplace."

"To this end, almost two thirds (61 percent) are interrogating
their management information much more frequently and a further 50
percent are using different information or additional flexible
modelling to help guide them in their decision-making."

Mr. Edge concluded: "Despite the gloomy outlook, there are some
crumbs of comfort to be found, particularly in terms of the
outlook for British exporters.  The weakness of the pound against
the dollar and the euro means that three quarters of our
respondents feel that UK businesses are now competitive in Europe,
while 67 percent believe that we are competitive in the US.
Taking advantage of such opportunities for growth could be an
important catalyst in reviving confidence across the economy as a
whole."

                      About KPMG LLP (UK)

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


* EASTERN EUROPE: Hungary PM Calls on EU for Funding Arrangement
----------------------------------------------------------------
Bloomberg News reports Hungarian Prime Minister Ferenc Gyurcsany
has called on the European Union to arrange a package of as much
as EUR180 billion (US$230 billion) to help east European
economies.

Eastern Europe economies face the challenges of a dearth of
international liquidity, exposure to vulnerable banks,
and collapsing export markets, according to the World Bank.

"The impact will now be felt strongly in the real economy as
defaults spread and foreclosures creep up, and as unemployment
rises sharply," Indermit Gill, World Bank Europe and Central Asia
Chief Economist, said.

Bloomberg News relates the International Monetary Fund said in
January the region will have a recession this year, forecasting
0.4 percent contraction.

"We must reduce the region's risk and that won't happen with words
alone," Prime Minister Gyurcsany told Bloomberg News in a Feb. 26
interview.  "The EU must take a lead role.  This package can
surely stop the quick depreciation of national currencies, which
is the biggest risk in the region right now.  We must raise
awareness of the region's challenges and build a framework for
coordinated action."

The proposal, called "European Stabilization and Integration
Program," would include short-term financing for governments,
coordinated restructuring for private debt, the recapitalization
of banks and liquidity for companies in as many as 12 countries,
Prime Minister Gyurcsany said as cited by the news agency.

According to Bloomberg News, the proposed program is intended to
help EU members Bulgaria, the Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Poland and Romania; two non-EU states, Croatia
and Ukraine; and two euro- region economies, Slovakia and
Slovenia.

The total combined international debt exposure to the 12 countries
is about EUR700 billion, Bloomberg News notes citing data from
the Hungarian government.


* EASTERN EUROPE: EBRD Head Says Banks May Need US$150 Bln Funding
------------------------------------------------------------------
Reuters reports that Thomas Mirow, the head of the European Bank
for Reconstruction and Development, said Friday Eastern European
banks could need some US$150 billion in recapitalization and
US$200 billion in refinancing to avert the risk of a banking
failure in the region.

Reuters relates that according to French newspaper LeFigaro, Mr.
Mirow said a rescue package will be implemented in a matter of
weeks.

Mr. Mirow, as cited by Reuters, said the refinancing of certain
institutions was particularly difficult, noting "the failure of
branches or banks in the East would without doubt have an impact
on the euro zone."

Reuter discloses the EBRD, the European Invesment Bank and the
World Bank launched Friday a joint program to lend up to
EUR24.5 billion (US$31.15 billion) to help banks and businesses in
eastern and central Europe.

Mr. Mirow, Reuters states, warned the two-year plan "needs to be
implemented as quickly as possible, otherwise we run a serious
risk of a credit crunch in eastern Europe."

                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

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

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

                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  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 * * *