TCREUR_Public/090318.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 18, 2009, Vol. 10, No. 54

                            Headlines

G E R M A N Y

BEHR GMBH: Moody's Withdraws 'Ba2' Corporate Family Rating
ESCADA AG: Net Loss Increases to EUR6.3 Mln in Qtr Ended January
FERNSEHPRODUKTIONS GMBH: Claims Registration Ends April 15
GERMAN RESIDENTIAL: Fitch Cuts Rating on Class E Notes to 'BB'
H2 LIVING: Claims Registration Period Ends April 30

HYPO REAL ESTATE HOLDING: Nationalization Talks to Continue
METROPOLITAN GUARDIANS: Claims Registration Period Ends April 24
MN CLEARING: Claims Registration Period Ends May 6
QIMONDA AG: Inspur Ends Talks Over Stake Acquisition
QUATRO SCAN: Claims Registration Period Ends April 23


I T A L Y

BANCA ITALEASE: Banco Popolare Mulls Takeover Bid for Unit


K A Z A K H S T A N

MANGISTAU ELECTRICITY: Fitch Corrects March 13 Rating Release


K Y R G Y Z S T A N

ZAVOD MODULNYH: Creditors Must File Claims by March 27


L U X E M B O U R G

KAUPTHING BANK: Interbank Creditors Reject Restructuring Plan
LOGWIN AG: S&P Changes Outlook to Negative; Affirms 'B' Rating


N E T H E R L A N D S

EOLO INVESTMENTS: Fitch Cuts Rating on Series 2006-2 Note to 'BB'
EOLO INVESTMENTS: Fitch Cuts Rating on Series 2006-3 Note to 'BB'
PANTHER CDO I: Fitch Junks Rating on Class III Notes from 'A'
PANTHER CDO IV: Fitch Junks Rating on Class C Notes from 'A-'
PANTHER CDO V: Fitch Downgrades Ratings on Six Classes of Notes

SCUTE II B.V.: Fitch Rates 10% of Portfolio at 'CCC+' or Below


R U S S I A

DALCOMBANK: Fitch Affirms Individual Rating at 'E'
LEADER ZAO: Fitch Assigns 'BB-' Long-Term Issuer Default Rating
MOSCOW BANK: Fitch Affirms Individual Rating at 'D/E'
PROMSVYAZBANK: Moody's Changes Outlook on 'D' BFSR to Negative
TATFONDBANK: Moody's Confirms 'E+' Financial Strength Rating


S E R B I A   &   M O N T E N E G R O

* SERBIA: Fitch Says IMF Loan Agreement Supportive of Ratings


S P A I N

OBRASCON HUARTE: Fitch Cuts LT Issuer Default Rating to 'BB+'


S W I T Z E R L A N D

UBS AG: Elects Three Members to Its Board


U K R A I N E

DONBASS GEOLOGY: Creditors Must File Claims by March 27
FORTEKS INVEST: Creditors Must File Claims by March 27
RODOVID BANK: NBU Introduces Provisionary Administration
V. P. C. INDUSTRIES: Creditors Must File Claims by March 27
YUNIK-COM LLC: Creditors Must File Claims by March 27


U N I T E D   K I N G D O M

CARRINGWORTH LTD: Goes Into Administration; 250 Jobs at Risk
CENTREUNIQUE LTD: Appoints Administrators from Grant Thornton
COMPTECH DEVELOPMENTS: Brings in Joint Administrators from PwC
CONSORTIA LTD: Taps Joint Administrators from Grant Thornton
EIRLES FOUR: Fitch Cuts Ratings on Five Series of Notes to 'C'

EIRLES TWO: Fitch Cuts Ratings on Two Series of Notes to 'C'
ENTERPRISE INNS: Moody's Cuts Corporate Family Rating to 'Ba3'
EUROPEAN PRIME: S&P Lowers Rating on Class D Notes to 'BB'
GRAPHEX LTD: Appoints Joint Administrators from Deloitte
MCCARTHY & STONE: LandesBank Opposes Payout to Senior Managers

MORTGAGES NO 7: S&P Puts 'BB' Rating on Class E Notes on Watch Neg
POWERTRONIC DRIVE: Taps Joint Administrators from Grant Thornton
SENSORTRONIC LTD: Appoints Administrators from Grant Thornton
TATA MOTORS: S&P Keeps 'BB-' Senior Unsecured Notes Ratings
TSAR 05: Fitch Junks Ratings on Credit Default Swaps

TURBO BETA: Moody's Downgrades Corporate Family Rating to 'B2'


                         *********


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


BEHR GMBH: Moody's Withdraws 'Ba2' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has withdrawn the Ba2 corporate family
rating of privately owned Behr GmbH & Co. KG as well as the B1
instrument rating for Behr's Junior Subordinated Bonds.

The ratings are withdrawn upon the company's request, though the
ratings are withdrawn under Moody's Guidelines for the Withdrawal
of Ratings in situations associated with "Inadequate Information",
since in Moody's opinion there is insufficient public information
to assess effectively the creditworthiness of the issuer and its
obligations.

Outlook Actions:

Issuer: Behr GmbH & Co.KG

  -- Outlook, Changed To Rating Withdrawn From Negative

Withdrawals:

Issuer: Behr GmbH & Co.KG

  -- Corporate Family Rating, Withdrawn, previously rated Ba2

  -- Junior Subordinated Regular Bond/Debenture, Withdrawn,
     previously rated 94 - LGD6

Moody's last rating action on Behr was a downgrade to Ba2 with a
negative outlook on October 8, 2008.

Headquartered in Stuttgart, Germany, Behr GmbH & Co KG is a
leading supplier of thermal management products for the automotive
industry as well as for other industrial applications.


ESCADA AG: Net Loss Increases to EUR6.3 Mln in Qtr Ended January
----------------------------------------------------------------
Escada AG's net loss in the three months through January swelled
to EUR6.3 million (US$8.2 million) from EUR4 million a year
earlier, Bloomberg News reports citing a company statement.  Sales
for the current quarter fell 7.5 percent to EUR131.5 million.

Net loss in the fiscal year that ended Oct. 31 widened to EUR70.3
million from EUR27 million and sales fell 15 percent to EUR582.5
million, the report says.

"These sales and earnings are unsatisfactory," the report quoted
Chief Executive Officer Bruno Saelzer as saying in a conference
call.  "They highlight the urgent need to act and justify a
refocus."

Escada has been talking to its banks about a short- and mid- term
strategy, Chief Financial Officer Markus Schuerholz said as cited
by the report.

The report relates management will propose reducing Escada's
capital to EUR58 million from EUR107 million to remove a shortage
of subscribed capital resulting from a balance sheet loss of
EUR48.9 million last fiscal year.

The measure will be put to its annual general meeting on April 28,
the report notes.

Headquartered in Aschheim, Germany, ESCADA AG (FRA:ESC) ---
http://www.escada.com/--- is a fashion group engaged in women's
designer fashion.  Under its core brand ESCADA, the Company sells
women's designer fashions for daytime, evening, business, leisure,
sports, wellness and special occasions, as well as couture.  The
fashion range is supplemented with accessories like handbags,
shoes and small leather goods.  Fragrances, eyewear, kids wear and
jewelry from licensed partners are also sold under the ESCADA
brand.  Through its wholly owned subsidiary, PRIMERA AG, the
Company additionally sells the mid-priced brands apriori, BiBA,
cavita and Laurel. ESCADA AG has 194 own shops and 226 franchise
shops in approximately 60 countries.  Its manufacture capacities
are mainly outsourced to partner operations, located in Germany,
Italy, Eastern Europe and Asia.


FERNSEHPRODUKTIONS GMBH: Claims Registration Ends April 15
----------------------------------------------------------
Creditors of 4Returns GmbH have until April 15, 2009, to register
their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 2:00 p.m. on May 15, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Cologne
         Room 142
         Luxemburger Strasse 101
         50939 Cologne
         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. Christoph Niering
         Brabanter Str. 2
         50674 Cologne
         Germany
         Tel: 99 22 30-0
         Fax: +4922199223035

The court opened bankruptcy proceedings against the company on
March 6, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The debtor can be reached at:

         Fernsehproduktions GmbH
         Attn: Erich Wagner, Manager
         Leyboldstr. 12
         50354 Huerth
         Germany


GERMAN RESIDENTIAL: Fitch Cuts Rating on Class E Notes to 'BB'
--------------------------------------------------------------
Fitch Ratings has affirmed the class A1 and class X notes of
German Residential Funding plc's commercial mortgage-backed notes
and downgraded the transaction's other classes.

Rating actions:

  -- EUR1,695.4 million class A1 (XS0263580945) affirmed at 'AAA';
     Outlook revised to Negative from Stable

  -- EUR328.1 million class A2 (XS0263190216) downgraded to 'AA'
     from 'AAA'; Outlook revised to Negative from Stable

  -- EUR0.1 million class X (XS0263193400) affirmed at 'AAA';
     Outlook Stable

  -- EUR229.4 million class B (XS0263194713) downgraded to 'A+'
     from 'AA'; Outlook revised to Negative from Stable

  -- EUR229.4 million class C (XS0263195447) downgraded to 'BBB'
     from 'A'; Outlook Negative

  -- EUR113.6 million class D (XS0263195959) downgraded to 'BB+'
     from 'BBB+'; Outlook Negative

  -- EUR56.9 million class E (XS0263196338) downgraded to 'BB'
     from 'BBB'; Outlook Negative

The downgrades reflect the increased balloon risk of the
transaction and ongoing capital market declines.  The collateral
has not been revalued since closing for the purposes of the
securitization, as the transaction documentation does not include
any provisions for a revaluation of the portfolio.  Fitch
estimates the LTV at 91.5%, based on the current characteristics
of the portfolio, which implies a total decline in collateral
value of 23.5% since closing in August 2006.

Although the sponsor's business plan did not specify disposal
targets, over 3,000 assets have been sold since closing.  Except
for the last interest payment date, when EUR7.0 million was
applied as amortization, the disposal proceeds have generally not
been applied to pay down debt, but have instead been fully re-
invested subject to criteria set out in the credit agreement.
Fitch has been advised that the sponsor's strategy is to invest in
sub-performing or under-managed portfolios that can be easily
integrated into the main portfolio, where active management may
realize value increases.

Rents per sqm and vacancy rates have both displayed stable to
positive trends since closing.  Rental levels have increased
steadily to EUR5.11/sqm/month in February 2009, compared to
EUR5.02/sqm/month at closing.  While the current vacancy rate of
3.2% is at its highest level since closing, it still reflects very
strong performance.  Irrecoverable costs have been broadly in line
with the business plan.  Although maintenance capital expenditure
increased to its maximum level of EUR13.3/sqm in August 2008 from
EUR9.5/sqm at the first reporting period (November 2006), it has
since declined steadily to the current level of EUR10.1/sqm.
Despite the higher levels of capital expenditure, net operating
income has remained relatively stable since closing and this is
therefore not of particular concern.

The loan has maintained an ICR above 2x since closing (2.36x at
the February IPD).  This ratio only considers debt service
payments due on the securitized debt, thus if senior-ranking debt
payments are included, the debt service coverage ratio is slightly
lower at 1.99x.  However, the loan does not fully exploit the
strong collateral cash flow as it is not scheduled to amortize
until the last year of its term, which will only minimally reduce
the debt balance outstanding.  Given the high quality of NOI, the
rating action is being driven by the heightened balloon risk, as
evidenced in the high Fitch exit LTV of 90.2%.

Fitch will continue to monitor the performance of the transaction.


H2 LIVING: Claims Registration Period Ends April 30
---------------------------------------------------
Creditors of H2 Living & Lifestyle GmbH have until April 30, 2009,
to register their claims with court-appointed insolvency manager.

Creditors and other interested parties are encouraged to attend
the meeting at 9.15 a.m. on May 12, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Wuerzburg
         Room 14
         Second Stock
         Tiepolostr. 6
         Wuerzburg
         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 Hanselmann
         Heinestr. 7 b
         97070 Wuerzburg
         Germany
         Tel: 0931/359800

The court opened bankruptcy proceedings against the company on
March 12, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The debtor can be reached at:

         H2 Living & Lifestyle GmbH
         Wuerzburger Str. 41
         97246 Eibelstadt
         Germany

         Attn: Sven-Christian Hoveling
         Rechtsanwalte Bildl & Pongratz
         Steinbachtal 2 b
         97082 Wuerzburg
         Germany


HYPO REAL ESTATE HOLDING: Nationalization Talks to Continue
-----------------------------------------------------------
The Wall Street Journal reports further discussions over the fate
of Hypo Real Estate Holding AG will be conducted between the
German government and HypoRE investor J. Christopher Flowers.

The Journal says spokesmen for both parties confirmed the planned
talks after an exchange of information ended without disclosure of
any details.  No date for the next meeting has been set, the
report says.

Mr. Flowers, whose private equity firm J.C. Flowers & Co. LLC
holds about 23.7% in HypoRE and is the lender's largest
shareholder, is in talks with the German government about a
possible partial nationalization of the company, the Journal
relates.

The Journal states the German government is seeking control of
Hypo RE after injecting taxpayers' money into the bank, however,
Mr. Flowers wants to keep its stake in Hypo RE and reach a
solution with the government.

J.C. Flowers & Co. LLC last year bought the Hypo RE stake for
around EUR22.50 a share, or a total of around EUR1.1 billion, the
Journal notes.

                         75% Gov't Stake

On Mar. 10, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported German Finance Minister Peer Steinbrueck
said the state needs to gain more than 75 percent control of Hypo
RE to save the lender.

Given the worsening financial crisis, the government may "sooner
rather than later be faced with the difficulty that the survival
of the bank is seriously endangered," the report quoted Minister
Steinbrueck as saying.  "We must make sure, by gaining a
controlling majority, that the restructuring measures succeed."

Rescue of Hypo RE is being pulled by two forces.  According to
Bloomberg News, Chancellor Angela Merkel's Christian Democrats
favor taking 75 percent plus one share, while many of their Social
Democrat coalition partners want to take 90 percent or more of the
lender's stock.

The report recalled Chancellor Merkel's Cabinet agreed on a draft
bill Feb. 18 allowing the state to seize Hypo RE as a last resort
after the government granted it EUR102 billion (US$129 billion) of
public funds and guarantees.  However, Christian Democrats are
leery of the measures as they lose voter support to the pro-
business Free Democrats ahead of Sept. 27 national elections, the
report said.

                         Government Aid

According to Bloomberg News, Hypo Real, which already received
EUR92 billion from the government, was forced to seek a bailout
after Depfa Bank Plc, its Dublin-based unit, failed to get short-
term funding in September when credit markets seized up.
Hypo Real now needs another EUR10 billion, a Handelsblatt report
obtained by Bloomberg News said.

As reported in the Troubled Company Reporter-Europe on Jan. 23,
2009, the German Financial Markets Stabilisation Fund ("SoFFin")
extended its framework guarantee granted to Hypo Real Estate Group
by an additional EUR12 billion, bringing the aggregate guarantee
amount to EUR42 billion.

Hypo Real Estate Bank AG, part of Hypo Real Estate Group, can use
the additional guarantees to be issued by SoFFin to collateralize
debt securities to be issued, which must be due for repayment by
June 12, 2009 at the latest.

Hypo Real Estate Bank AG will pay to SoFFin a pro-rata commitment
commission of 0.1% on the undrawn portion of the framework
guarantee, and a 0.5% p.a. fee on guarantees drawn upon.

Negotiations between Hypo Real Estate and SoFFin regarding more
extensive and longer-term liquidity and capital support measures
for the Group have not yet been finalized.

About five weeks ago, SoFFin extended its EUR30 billion framework
guarantee for the Group from January 15, 2009 until April 15,
2009.  Under the extended guarantee, Hypo Real Estate Bank AG can
use the SoFFin guarantees to collateralize debt securities to be
issued, which must be due for repayment by April 15, 2009 at the
latest.  Hypo Real Estate Bank AG will then pay to SoFFin a pro-
rata commitment commission of 0.1% of the undrawn portion of the
framework guarantee.  The fee for guarantees drawn will be 0.5%
p.a. (previously 1.5% p.a.).

                     About Hypo Real Estate

Germany-based Hypo Real Estate Holding AG (FRA:HRXG) --
http://www.hyporealestate.com/-- is a German holding company for
the Hypo Real Estate Group.  It is an international real estate
financing company, combining commercial real estate financing
products with investment banking.  The Company divides its
operations into three business units: Commercial Real Estate,
which provides real estate financing on the international and
German market; Public Sector & Infrastructure Finance, and Capital
Markets & Asset Management.  Hypo Real Estate Group operates
through a number of subsidiaries, including, among others, Hypo
Real Estate Bank International AG that focuses on Pfandbrief-based
commercial real estate financing in all international markets, and
offers large-volume investment banking and structured finance
transactions; Hypo Real Estate Bank AG that focuses on the
commercial real estate financing and refinancing business in
Germany, and DEPFA Bank plc in Dublin, Ireland, which is a
provider of public finance.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Dec. 2,
2008, Dominion Bond Rating Service downgraded its long-term
ratings for Hypo Real Estate Holding AG (Holding) and related
entities (together Hypo Real Estate or the Group), including the
Senior Unsecured Long-Term Debt rating for Holding, which was
downgraded to A (low) from "A".  Concurrently, all ratings have
been placed Under Review with Negative Implications.

DBRS's rating action followed the announcement of Hypo Real
Estate's Q3 2008 results, the announcement of an additional EUR20
billion short-term debt guarantee and of additional information
about the Group's liquidity challenges, earnings outlook and
pending application for more comprehensive external support.

The downgrade and the Under Review Negative status reflect DBRS's
concern that Hypo Real Estate's franchise has been weakened by its
ongoing liquidity challenges.  The Group's lack of access to
market funding currently restricts its ability to write new
business and requires it to seek more comprehensive support,
demonstrating the weakening of its intrinsic fundamentals, the
rating agency said.

A TCR-Europe report on Nov. 24, 2008, said Hypo Real Estate Group
incurred a consolidated pre-tax loss of EUR3.105 billion for the
third quarter of 2008 compared with a pre-tax profit of EUR237
million in the corresponding previous year period.  The quarterly
loss is mainly attributable to the writeoff of goodwill
and other intangible assets attributable to the initial
consolidation of DEPFA Bank Plc (EUR2.482 billion).

On Oct. 28, 2008, the TCR-Europe reported Standard & Poor's
Ratings Services lowered its long-term counterparty credit ratings
on the seven rated entities of Hypo Real Estate (HRE) group to
'BBB' from 'BBB+', namely, Germany-based commercial real estate
lenders Hypo Real Estate Bank International AG and Hypo Real
Estate Bank AG, public-finance lenders Depfa Deutsche
Pfandbriefbank AG, Ireland-based DEPFA BANK PLC, Depfa ACS, and
Hypo Public Finance Bank, and Luxembourg-based Hypo Pfandbriefbank
Bank International S.A.

"These rating actions reflect the group's strained financial
profile, weak funding position, and concerns about the viability
of its business model," said Standard & Poor's credit analyst
Volker von Kruechten.  "We expect HRE to restructure and downsize,
which may cause further pressure on earnings and capital, owing to
the difficult market environment and a deteriorating credit
cycle."


METROPOLITAN GUARDIANS: Claims Registration Period Ends April 24
----------------------------------------------------------------
Creditors of Metropolitan Guardians GmbH have until April 24,
2009, to register their claims with court-appointed insolvency
manager.

Creditors and other interested parties are encouraged to attend
the meeting at 10:20 a.m. on May 25, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

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

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

The insolvency manager can be reached at:

         Stephan Neubauer
         Spitalerstrasse 4
         20095 Hamburg
         Germany

The court opened bankruptcy proceedings against the company on
March 11, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The debtor can be reached at:

         Metropolitan Guardians GmbH
         Attn: Metin OErer, Manager
         Theodorstr. 42 – 90
         22761 Hamburg
         Germany


MN CLEARING: Claims Registration Period Ends May 6
--------------------------------------------------
Creditors of MN Clearing Services GmbH have until May 6, 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 May 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 Flensburg
         Hall A 220
         Suedergraben 22
         Flensburg
         Germany

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

The insolvency manager can be reached at:

         Peter A. Borchardt
         C/o Schomerus & Partner
         Deichstrasse 1
         20459 Hamburg
         Germany

The court opened bankruptcy proceedings against the company on
March 10, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The debtor can be reached at:

         MN Clearing Services GmbH
         Attn: Norman Worgall, Manager
         Ballastkai 9
         24937 Flensburg
         Germany


QIMONDA AG: Inspur Ends Talks Over Stake Acquisition
----------------------------------------------------
Bloomberg News' Mark Lee Wai Yee and Frances Robinson report that
Inspur Group Co., the parent of Hong Kong-listed computer and
information technology company Inspur International Ltd., has
ended talks to acquire a stake in Qimonda AG.

Liu Xueheng, a spokesman for Inspur's Hong Kong unit, told
Bloomberg News by phone on Monday that negotiations ended after
Qimonda's insolvency filing.

Bloomberg News relates that in a March 16 report The Financial
Times Deutschland said under a plan drafed by preliminary
insolvency administrator Michael Jaffe, the Shandong-based company
would acquire about 50 percent of Qimonda to help the company exit
bankruptcy, with creditors taking 15 percent and Portugal and the
German state of Saxony the remainder.

                       "No Binding Offers"

As reported in the Troubled Company Reporter-Europe on March 17,
2009, Dr. Jaffe said in a March 13 statement "Various investors
have signaled their interest, but as yet there are no binding
offers on the table.  As anticipated, it will not be possible to
reach a conclusive solution by the end of March."

                     Production Ramped Down

The employees of the insolvent Qimonda AG and Qimonda Dresden OHG
will be able to claim compensation by means of statutory
insolvency payments until the end of March 2009.  By the end of
March, the bankruptcy court in Munich will also have received the
preliminary insolvency administrator's report on the basis of
which the court will make a decision on whether to open insolvency
proceedings.

From April 1, 2009 -- the expected opening date for insolvency
proceedings -- the company would have to cover all wage and salary
payments itself.  Continuing production at full cost on the same
scale as before can be ruled out, however, due to the sustained
price decline in the chip industry and the enormous losses that
would result.  For this reason, production in Dresden will
gradually be ramped down and put into "standby mode" by March 31,
2009.  This will allow production to be resumed at any time,
should it be possible to successfully conclude negotiations with
potential investors.

A transfer company is to be formed to keep open the option of
continuing production and business operations while preserving the
interests of both employees and creditors.  From April 1, 2009,
employees at German sites are to be offered reassignment to the
transfer company, as soon as financing has been secured.  Talks
with the works council regarding details of future employment in
the transfer company and other possible personnel measures, are to
be concluded in the near future.

It is also planned that a core team led by the insolvency
administrator will continue to work within the company in order to
maintain the leading Buried Wordline Technology and oversee the
investor process.

"Ramping down production, maintaining the Buried Wordline
Technology and reassigning employees to the transfer company are
vital prerequisites which enable us to pursue a potential solution
with the aim of preserving as many jobs as possible," said Dr.
Jaffe.

Qimonda, however, reiterated no final decisions have been reached
as yet with regard to the future structure of the company.  This
also applies to a decision over whether parts of the business
which are able to continue operations will be retained by Qimonda
or transferred to a new company belonging to new investors.  In
the latter case, or if no investors can be found to finance
Qimonda's continued operation, Qimonda AG, which would legally be
dissolved with the opening of insolvency proceedings, would most
likely be liquidated.

As reported in the Troubled Company Reporter, Qimonda AG filed an
application with the local court in Munich, Germany, on January
23, 2009, to open insolvency proceedings.  Their goal is to
reorganize the companies as part of the ongoing restructuring
program.

According to Bloomberg News, Qimonda filed for insolvency after a
plan announced in December for a loan of EUR325 million (US$418
million) from the German state of Saxony, Infineon Technologies
AG, Europe's second-largest maker of semiconductors,
and an unidentified Portuguese bank wasn't completed in time.

Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business --  approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in Richmond
(Virginia, USA).  The company provides DRAM products with a focus
on infrastructure and graphics applications, using its power
saving technologies and designs.  Qimonda is an active innovator
and brings high performance, low power consumption and small chip
sizes to the market based on its breakthrough Buried Wordline
technology.


QUATRO SCAN: Claims Registration Period Ends April 23
-----------------------------------------------------
Creditors of Quatro Scan GmbH have until April 23, 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 June 4, 2009, at which time the
insolvency manager will present his first report.

The meeting of creditors will be held at:

         The District Court of Syke
         Hall 112
         Hauptstr. 5A
         28857 Syke
         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:

         Dirk Oelbermann
         Richtweg 1
         28195 Bremen
         Germany
         Tel: 0421 / 51 57 560
         Fax: 0421 / 51 57 56 10

The court opened bankruptcy proceedings against the company on
March 9, 2009.  Consequently, all pending proceedings against the
company have been automatically stayed.

The debtor can be reached at:

         Quatro Scan GmbH
         Attn: Gerhard Friedrich,Manager
         Von Braun Strasse 6
         49356 Diepholz
         Germany


=========
I T A L Y
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BANCA ITALEASE: Banco Popolare Mulls Takeover Bid for Unit
----------------------------------------------------------
A report posted on tradingmarkets.com, citing ADP News, said Banco
Popolare Societa Cooperativa will launch a voluntary takeover bid
for Banca Italease offering EUR1.50 per share (US$1.936).  Banco
Popolare holds 31 percent of Banca Italease.

According to the report, the takeover bid is conditional on
reaching 90% of the share capital.  The report relates under the
deal, Banco Popolare will buy out shares held by Banca Popolare
dell'Emilia Romagna, Banca Popolare di Sondrio and Banca Popolare
di Milano.  The report says the operation is aimed at the
delisting of the financially troubled Banca Italease and is part
of Banco Popolare reorganization plan.

Reuters reported on March 14 that Banca Italease said in a
statement write-downs on doubtful and non-performing loans at the
end of 2008 amount to around EUR850 million (US$1.1 billion).

According to Reuters, Banca Italease's gross doubtful loans rose
from EUR202 million (US$260 million) at the end of 2007 to about
EUR3.7 billion end-2008, 90 percent of which regarded real estate
leasing contracts.

Due and unpaid instalments on these doubtful loans amounted to
about EUR180 million, Banca Italease said in the statement
obtained by Reuters.  Gross non-performing loans in the period
rose from EUR336 million to about EUR626 million, Reuters relates.

Italease rescheduled a board meeting on 2008 results to March 28
from March 19, according to Reuters.

Reuters recalls Italease posted a nine-month net loss of EUR222
million as it restructured after huge losses from derivatives
investments in 2007.

Banca Italease SpA (BIT:BIL) --  http://www.italease.it/-- is an
Italy-based banking company.  Banca Italease provides retail
leasing services through: Italease Secondacasa, offering real
estate leasing; Tiarredo, providing furniture leasing; Tiarredo
Arte, specializing in art leasing; Tiguido, offering car and
motorcycle leasing, and Tivaro, providing boat leasing.  Banca
Italease also offers corporate leasing through its subsidiaries:
LeasinGomme, Real Estate Leasing, Industrial Leasing, Public
Sector Leasing and Corporate Car Leasing.  Other areas of
Company’s operations are: subsidized leasing, medium and long-term
lending, insurance products, factoring, long-term car leasing, and
Interest Rate Swap (IRS) contracts.

                         *     *     *

As reported in the Troubled Company Reporter-Europe on Dec. 5,
2008, Fitch Ratings affirmed Banca Italease's Individual rating at
'D/E' and kept the Long-term 'BB' rating of the bank's EUR150
million trust preferred securities on Rating Watch Negative.

As of March 9, 2009, Banca Italease continues to carry Moody's
Ba1/Not-Prime/D- ratings on its long- and short-term deposit
ratings as well as bank financial strength (BFSR), respectively.
All ratings have a stable outlook.


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


MANGISTAU ELECTRICITY: Fitch Corrects March 13 Rating Release
-------------------------------------------------------------
This announcement corrects the version issued on 13 March 2009.
The maturity of the bond is 2014.

Fitch Ratings has assigned Mangistau Electricity Distribution
Network Company's KZT800 million 16% domestic bond due 2014 a
senior unsecured local currency rating of 'BB+'.  The rating is on
Rating Watch Negative.

MEDNC's Long-term foreign currency Issuer Default 'BB', Long-term
local currency IDR 'BB+' and National Long-term 'AA-(AA minus)
(kaz)' were also placed on RWN on 19 February 2009 after
Kazakhstan's sovereign ratings were placed on RWN.   MEDNC's
Short-term foreign currency IDR is 'B'.

This bond is the fifth issue under MEDNC's domestic bond program
of KZT9,864.5 million.  MEDNC plans to use the bond proceeds for
financing capital expenditures.  The bond prospectus does not
contain any financial or other covenants.

MEDNC is a state-owned near-monopoly regional electricity
distribution company which services the region of Mangistau (with
the exception of the city of Aktau) located in the south-west of
Kazakhstan near the Caspian Sea.  It accounts for 2.5% of
Kazakhstan's transmission and distribution network.


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


ZAVOD MODULNYH: Creditors Must File Claims by March 27
------------------------------------------------------
Creditors of LLC Zavod Modulnyh Metallo Konstruktsyi have until
March 27, 2009, to submit proofs of claim to:

         LLC Zavod Modulnyh Metallo Konstruktsyi
         Lenin St. 1
         Kirgshelk
         Issyk-Atinsky district
         Chui
         Kyrgyzstan


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


KAUPTHING BANK: Interbank Creditors Reject Restructuring Plan
-------------------------------------------------------------
Reuters reports that Kaupthing Bank Luxembourg S.A.'s interbank
creditors on Monday rejected the bank's restructuring plan.

Reuters relates Kaupthing Luxembourg said it was now in
discussions with the parties involved and relevant public
authorities to explore alternative options, ahead of an April 8
deadline to restructure the bank.

"For now, all options are being studied by the administrators, who
will communicate the results of their discussions at an
appropriate time," the bank said in a statement obtained by
Reuters.

                       Restructuring Plan

As reported in the Troubled Company Reporter-Europe on March 12,
2009, Reuters, citing a restructuring plan drawn up by
administrators, said Kaupthing Luxembourg will shed certain assets
and loans before being taken over.

Luxembourg's official journal said the Luxembourg unit will split
into two entities, Reuters stated.

According to Reuters, under the restructuring plan, the first, New
Bank, will carry on the banking activities, retain the staff and
hold at least EUR350 million in cash, while the other, the
Securitisation Company, will pool private banking and corporate
loans, claims related to litigation and certain receivables.

The plan, Reuters noted, is subject to the vote of certain
creditors and court approval.

                     Takeover Deal

Citing Reuters' Michele Sinner and Dale Hudson, the Troubled
Company Reporter-Europe reported on Dec. 26, 2008, that
Luxembourg's budget minister Luc Frieden signed a declaration of
intent for the sale of Kaupthing's Luxembourg arm to a group of
investors from Arab countries.

Reuters recalled the Luxembourg government said the agreement
needs acceptance from the Belgian state and creditor banks.  It
added that together with Belgium and the creditor banks, it would
provide credit to Kaupthing Luxembourg, enabling the unit to keep
functioning and reimburse depositors.

Belgian accounts are held by the Luxembourg unit of Kaupthing and
their money was frozen in November by Luxembourg's financial
regulator after the Icelandic parent company was taken over by the
Icelandic state, Reuters noted.

Reuters recounted that according to Belgian Prime Minister Yves
Leterme there was a serious candidate to buy Kaupthing Luxembourg,
and that three or four other parties were also eyeing a takeover
of Kaupthing's Belgian customers.  Potential buyers for the Belgin
customers included online lender Keytrade Bank, German bank
Landesbank Nord and the Libyan Investment Autority fund, Reuters
disclosed citing Luxembourg daily Tageblatt.

                       About Kaupthing Bank

Headquartered in Reykjavik, Iceland, 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.


LOGWIN AG: S&P Changes Outlook to Negative; Affirms 'B' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised to
negative from stable its outlook on Luxembourg-based logistics
services provider, Logwin AG.  This reflects weakening operational
performance and vulnerability to depressed trading volumes in the
logistics industry in 2009.  At the same time, the 'B' long-term
corporate credit rating on the group was affirmed.

"The negative outlook primarily reflects the group's weakening
operating performance, sharp deterioration in trading volumes in
the logistics industry, and S&P's view that adverse market
conditions will continue to dampen demand for Logwin's products
and services during 2009," said Standard & Poor's credit analyst
Leigh Bailey.

Free operating cash flow was marginally positive in 2008, but
deteriorated sharply in the fourth quarter of the year, which is a
credit concern.  The cash absorption was primarily due to late
payments from customers, which should reverse over the coming
months.  On an annualized basis, FOCF was EUR15 million to
EUR25 million over the past 12 months.  In S&P's view, the group's
current level of liquidity is adequate for the 'B' rating.

Logwin faces a tough economic environment, characterized by
declining global growth rates and a market slowdown in the German
economy.  A marked reduction in economic activity worldwide,
particularly during the fourth quarter of 2008, has resulted in a
significant reduction in transport volumes.  This has led to
considerable overcapacity in the freight market, resulting in
intensified competition for reduced transport and logistics
volumes.  The weakening economic situation has had a direct effect
on sales and earnings at Logwin, which fell well short of its
economic targets in 2008.  S&P expects the outlook for transport
volumes in the group's core markets to remain depressed in 2009,
reflecting forecast GDP contraction in Germany and Central and
Eastern Europe.

Fourth-quarter revenue and cash flow performance in 2008 was weak,
reflecting the negative trend in overall economic activity toward
the end of the year.  The 40% increase in operating profit to
EUR6.8 million at the global transportation and freight forwarding
business, Air & Ocean, was more than offset by operating losses at
the contract logistics (Solutions) business and Road & Rail.  Over
the same period, the group recorded an operating loss of
EUR1.7 million, compared with an operating profit of
EUR3.7 million in the same period in 2007.  This reflected
operating losses of about EUR2.5 million at the group's Solutions
business and EUR4.0 million at Road & Rail.  At the same time,
sales at the Solutions business, which accounted for 34% of 2008
revenues, were down 16% because of weakness in key industries such
as automotive, industrial, and fashion.  Sales at Road & Rail,
which accounted for 41% of 2008 group revenues, fell 26% in the
final quarter of 2008 as transport volumes and freight rates
declined.

In the year ended Dec. 31, 2008, Logwin's earnings decreased by
27% to EUR23.2 million (before restructuring costs and
impairments).  EBITDA margins, meanwhile, fell to 2.4% from 3.0%
in 2007.  Although margins were hampered in the fourth quarter of
2008 as the economic downturn took hold, they had declined during
the first nine months of the year.  This resulted from a
combination of much weaker-than-anticipated performance at the
group's Solutions business, where earnings declined 61% in 2008,
and increased cost pressures from energy price rises.  Although
increased energy prices should not be an issue in 2009, the
group's margins are thin relative to those of industry peers.  In
such a harsh trading environment, the group's earnings and cash
generation are potentially vulnerable this year to volume declines
and increased competition in the market.

Credit protection measures are in line with the rating category,
with funds from operations to pension and operating lease-adjusted
debt at 15% for the 12 months ended Dec. 31, 2008.

The ratings on Logwin reflect the group's midsize position in the
highly fragmented, cyclical, and competitive logistics market; the
regional and relatively limited scope of its operations; modest
margins; and high financial leverage.  These constraints are
partially mitigated by the group's solid niche market positions.
On Dec. 31, 2008, Logwin's total reported debt was EUR205 million
(unadjusted for the effect of operating leases and pension
liabilities).

The negative outlook reflects S&P's view that market conditions
will be very tough in 2009, which may further pressure the group's
credit metrics and cash flow generation.  Logwin's ability to
generate free cash flow is a key support to the 'B' rating.  S&P
believes that the group will continue to perform in line with the
ratings, with adjusted FFO to debt of about 15%; however, the
group's ability to maintain cash reserves and adequate liquidity
is of primary importance to the rating at the current level.
Should deteriorating market conditions lead to a material
weakening in the group's cash flows and liquidity position, S&P
could lower the ratings.

S&P could consider a revision of the outlook to stable over the
intermediate term if the group were able to adapt its cost base to
cope with a global slowdown and return to positive FOCF at an
annualized rate of about EUR15 million.


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


EOLO INVESTMENTS: Fitch Cuts Rating on Series 2006-2 Note to 'BB'
-----------------------------------------------------------------
Fitch Ratings has downgraded Eolo Investments B.V. Series 2006-2's
(ISIN XS0275137270) note to 'BB' from 'AAA' and assigned a Stable
Outlook.

The rating action is based on the credit quality of the reference
asset.

The Series 2006-2 note references a single 'BB' rated Home Equity
RMBS note on which the swap counterparty, Credit Suisse
International, has swapped the proceeds of the RMBS note for the
proceeds of the Series 2006-2 note.  The Series 2006-2 note's
rating addresses the likelihood that investors will receive timely
interest and the final principal amount by the termination date in
October 2046.


EOLO INVESTMENTS: Fitch Cuts Rating on Series 2006-3 Note to 'BB'
-----------------------------------------------------------------
Fitch Ratings has downgraded Eolo Investments B.V. Series 2006-3's
(ISIN XS0275296316) note to 'BB' from 'AAA', removed the note from
Rating Watch Negative and assigned a Stable Outlook.

The rating action is based on the credit quality of the reference
asset.

The 2006-3 note references a single 'BB' rated Home Equity RMBS
note on which the swap counterparty, Credit Suisse International,
has swapped the proceeds of the RMBS note for the proceeds of the
2006-3 note.  The 2006-3 note's rating addresses the likelihood
that investors will receive timely interest and the final
principal amount by the termination date in December 2036.


PANTHER CDO I: Fitch Junks Rating on Class III Notes from 'A'
-------------------------------------------------------------
Fitch Ratings has downgraded two classes of Panther CDO I B.V.'s
notes and affirmed the senior class.  The agency has also removed
the class II and III from Rating Watch Negative.  Fitch has
assigned a Negative Outlook to the class II notes and assigned a
Recovery Rating to the class III notes.

Rating actions:

  -- GBP156,229,429 class I (ISIN XS0124334763) affirmed at 'AAA';
     Stable Outlook

  -- GBP32,000,000 class II (ISIN XS0124334847) downgraded to 'BB'
     from 'AA+'; removed from RWN; assigned a Negative Outlook

  -- GBP17,500,000 class III (ISIN XS0124335497) downgraded to
     'CCC' from 'A'; removed from RWN; assigned 'RR3'

The downgrades of class II and III 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 expected credit deterioration in the
portfolio.  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.

The agency expects credit deterioration in the Panther I CDO B.V.
portfolio.  Of the collateral balance 6.3% is on RWN and 18.1% is
on Negative Outlook.  Given the current macro economic climate,
the credit enhancement of class II and class III is no longer
consistent with a 'AA+' and 'A' rating respectively.

Class I has been affirmed following the continuous de-leveraging
of the transaction.  Panther CDO I B.V. has passed its re-
investment period and any principal proceeds are currently used to
redeem class I.  As a result 35% of class I original balance has
been redeemed.

In conducting its analysis, Fitch makes a three-notch downward
adjustment for any structured finance names on RWN, and a one-
notch downward adjustment for corporate names on RWN or Negative
Outlook for default analysis under its Portfolio Credit Model.
The weighted average portfolio quality is 'BB'.  Currently 1.4% of
the portfolio is rated 'CCC+' and below on an unadjusted basis.
One obligor has defaulted, representing 2.3% of the portfolio. The
non-defaulted portfolio comprises 56.7% corporate assets, 15.3%
structured finance assets and 28% private placements.

Panther CDO I B.V. is an arbitrage cash flow CDO that issued
EUR313 million of various classes of fixed- and floating-rate
notes to invest the proceeds in a portfolio of bonds, leveraged
loans, and structured finance assets.


PANTHER CDO IV: Fitch Junks Rating on Class C Notes from 'A-'
-------------------------------------------------------------
Fitch Ratings has downgraded four classes of Panther CDO IV B.V.'s
notes.  The agency has also removed the four classes from Rating
Watch Negative.  Fitch has assigned a Negative Outlook to the
class B and A-2 notes and assigned a Recovery Rating to the class
C notes.

Rating actions:

  -- EUR268 million Class A-1 (ISIN XS0276065124) downgraded to
     'BBB' from 'AAA'; removed from RWN; assigned a Stable Outlook

  -- EUR34 million Class A-2 (ISIN XS0276066361) downgraded to
     'BB' from 'AAA'; removed from RWN; assigned a Negative
     Outlook

  -- EUR28 million Class B (ISIN XS0276068730) downgraded to 'B'
     from 'AA-' (AA minus); removed from RWN; assigned a Negative
     Outlook

  -- EUR18 million Class C (ISIN XS0276070553) downgraded to 'CCC'
     from 'A-' (A minus); removed from RWN; assigned 'RR5'

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 in the collateral pool.  The new
criteria incorporate Fitch's view on industry and vintage
concentration risks and the propensity for low recoveries upon
default, particularly for thin tranches.

The concentration of real estate related B-notes and credit
deterioration in the portfolio have particularly affected the
junior tranches.  Of the portfolio 18.6% consists of property B-
notes which are subject to heightened refinancing risks and poor
recovery prospects in a difficult economic climate.  In addition,
the collateral pool has experienced the default of two obligors in
the last five months.  The agency also expects further negative
credit migration in the portfolio. Of the portfolio, 3.5% is on
RWN, and 9.9% is on Negative Outlook.

Further negative portfolio migration would result in a higher
percentage of assets being subject to adjustments in the over-
collateralization ratio calculation.  For example, negative credit
migration among property B-notes would put all coverage tests
under severe pressure.  In this case interest would be diverted
away from the junior notes to amortize the senior notes.  The
Class C notes have been downgraded to 'CCC' as this class is
vulnerable to future portfolio rating migration.  In Fitch's view
the breach of the OC tests in a stressed environment make the
likelihood of a full recovery of the class C notes remote.

In conducting its analysis, Fitch makes a three-notch downward
adjustment for any structured finance names on RWN, and a one-
notch downward adjustment for corporate names on RWN or Negative
Outlook for default analysis under its Portfolio Credit Model.
The weighted average portfolio quality is 'B+'/'B'.  Currently
5.9% of the portfolio is rated 'CCC+' and below on an unadjusted
basis.  Two obligors have defaulted, representing 1.4% of the
collateral pool.  The non-defaulted portfolio comprises 18.6% real
estate related B-notes, 49.1% corporate assets, 28.5% structured
finance assets, and 3.8% of private placements.

Panther CDO IV B.V. is an arbitrage cash flow CDO that issued
EUR400 million of various classes of fixed- and floating-rate
notes to invest the proceeds in a portfolio of bonds, leveraged
loans, structured finance assets and real estate related B-notes.


PANTHER CDO V: Fitch Downgrades Ratings on Six Classes of Notes
---------------------------------------------------------------
Fitch Ratings has downgraded six classes of Panther CDO V B.V.'s
notes.  The agency has also removed the six classes from Rating
Watch Negative. Fitch has assigned a Negative Outlook to the class
B and C notes and assigned Recovery Ratings to the class D and E
notes.

Rating actions:

  -- EUR234.5 million Class A1 (ISIN XS0308593671) downgraded to
     'A' from 'AAA'; removed from RWN; assigned a Stable Outlook

  -- EUR29.75 million Class A2 (ISIN XS0308594059) downgraded to
     'BBB' from 'AAA'; removed from RWN'; assigned a Stable
     Outlook

  -- EUR24.5 million Class B (ISIN XS0308594489) downgraded to
     'BB' from 'AA'; removed from RWN; assigned a Negative Outlook

  -- EUR17.5 million Class C (ISIN XS0308594729) downgraded to 'B'
     from 'A-' (A minus); removed from RWN; assigned a Negative
     Outlook

  -- EUR18 million Class D (ISIN XS0308595296) downgraded to 'CCC'
     from 'BBB-' (BBB minus); removed from RWN; assigned 'RR5'

  -- EUR4 million Class E (ISIN XS0308595536) downgraded to 'CCC'
     from 'BB'; removed from RWN; assigned 'RR6'

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 expected credit deterioration in the collateral pool.  The
new criteria incorporate Fitch's view on industry and vintage
concentration risks and the propensity for low recoveries upon
default, particularly for thin tranches.

The concentration of real estate related B-notes as well as credit
deterioration in the portfolio has particularly affected the
junior tranches.  Of the portfolio, 13.5% consists of property B-
notes which are subject to heightened refinancing risks and poor
recovery prospects in a difficult economic climate.  In addition,
the collateral pool has experienced the default of 3 obligors in
the last five months.  The agency also expects further negative
credit migration in the portfolio. Of the portfolio, 11.7% is on
RWN, and 10.5% is on Negative Outlook.

Further negative portfolio migration would result in a higher
percentage of assets being subject to adjustments in the over-
collateralization ratio calculation.  For example, negative credit
migration among property B-notes would put all coverage tests
under severe pressure.  In this case interest would be diverted
away from the junior notes to amortize the senior notes. The Class
D and E notes have been downgraded to 'CCC' as these classes are
most vulnerable to future portfolio rating migration.  In Fitch's
view the breach of the OC tests in a stressed environment make the
likelihood of a full recovery of the class D and E notes remote.

In conducting its analysis, Fitch makes a three-notch downward
adjustment for any structured finance names on RWN, and a one-
notch downward adjustment for corporate names on RWN or Negative
Outlook for default analysis under its Portfolio Credit Model.
The weighted average portfolio quality is 'B+'. Currently 7.6% of
the portfolio is rated 'CCC+' and below on an unadjusted basis.
Three obligors have defaulted, representing 1.3% of the collateral
pool.  The non-defaulted portfolio comprises 13.5% real estate
related B-notes, 45.4% corporate assets, 34.3% structured finance
assets and 6.8% private placements.

Panther CDO V B.V. is an arbitrage cash flow CDO that issued
EUR350 million of various classes of fixed- and floating-rate
notes to invest the proceeds in a portfolio of bonds, leveraged
loans, structured finance assets and real estate related B-notes.


SCUTE II B.V.: Fitch Rates 10% of Portfolio at 'CCC+' or Below
--------------------------------------------------------------
Fitch Ratings has affirmed Scute II B.V.'s US$592.5 million Class
A-1 and US$125,000 Class A-2 senior deferrable interest notes due
2054 'A-' (A minus) with Negative Outlook.

The affirmations reflect Fitch's view on the credit risk of the
rated tranches following the release of its revised Structured
Finance CDO rating criteria on 16 December 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 monthly report dated February 27, 2009, the
portfolio contained 138 assets from 58 obligors.  The largest
single obligor exposure is approximately 7% of the outstanding
portfolio amount, and the three largest obligors account for
approximately 16% of the outstanding portfolio amount.  Ten
percent of the portfolio, comprised entirely of US SF CDOs, is
rated 'CCC+' or below.  Fitch makes a three-notch downward
adjustment for any names on Rating Watch Negative for default
analysis in its Portfolio Credit Model.

In January 2009, the manager, NIBC Credit Management, Inc.,
restructured the transaction by cancelling the FX swap and re-
denominating all notes in US$.  NIBC CMI further amended the
transaction by creating and drawing on a subordinated loan to
partially repay US$238 million of the Class A notes.  The
subordinated loan ranks equally with the Class B notes.  NIBC CMI
has proposed to draw an additional US$170 million of the
subordinated loan to further reduce the Class A notes on the next
payment date, March 18, 2009.

The proposed draw on the subordinated loan and additional partial
repayment of Class A notes will increase credit enhancement
through subordination to approximately 57%.  The transaction,
after proposed reduction of Class A notes, can withstand the
default of approximately 55% of the current portfolio at marginal
recovery values.  Despite the proposed restructuring, the
underlying portfolio is still highly susceptible to further credit
deterioration and negative portfolio performance as it is
overwhelmingly exposed to US SF CDOs (93% of the portfolio).  On
an adjusted basis, approximately 31% of the assets are treated as
sub-investment grade.  The weighted average portfolio quality is
'BB+' and 38% of the portfolio is on RWN.

The transaction is static, but may still become managed at the
option of 66 2/3% of the Class B noteholders.  Furthermore, the
transaction documents provide for application of the class A OC
test during the reinvestment period only.  Currently the class A
OC test is not applicable which allows excess spread to be paid to
the junior notes while the class A notes are still outstanding.


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


DALCOMBANK: Fitch Affirms Individual Rating at 'E'
--------------------------------------------------
Fitch Ratings has affirmed the ratings of Russia's Moscow Bank for
Reconstruction and Development and its subsidiary Dalcombank,
including their respective Long-term Issuer Default Ratings at
'B+' with Negative Outlooks.

Fitch has also assigned MBRD's RUB5 billion issue of fixed-rate
bonds a National Long-term Rating of 'A-(rus)' (A minus).  The
bond will mature in February 2014, although there is an option
available to bondholders to submit the bond for early repayment in
March 2010.

MBRD's and DCB's IDRs are driven by potential support, in case of
need, from Sistema JSFC (Sistema, rated 'BB-' (BB
minus)/Negative), which is MBRD's main shareholder.  The future
direction of the banks' ratings is likely to depend on Sistema's
Long-term IDR and Fitch's view of Sistema's propensity to support
MBRD and DCB.  The Negative Outlooks assigned to MBRD's and DCB's
Long-term IDRs reflect the possibility that Sistema's ability to
provide support could weaken in the future.

MBRD's Individual Rating of 'D/E' reflects risks arising from
rapid recent loan growth and a significant deterioration in asset
quality, especially in the retail segment, which could place
renewed pressure on capital.  MBRD's regulatory capital ratio fell
to a low 10.3% in December 2008, but was strengthened by a RUB6.8
billion equity injection, which more than doubled equity, causing
the capital ratio to rise to 13.2% at end-February 2009.  However,
RUB3.3 billion of the injection was earmarked for the acquisition
of DCB by MBRD, which will give rise to sizeable goodwill within
MBRD's equity.  The liquidity of the bank is currently
comfortable, supported by funding from related parties and Central
Bank of Russia.

DCB's Individual Rating of 'E' reflects its small size, asset
quality deterioration, weak liquidity position and weak
capitalization.  As at MBRD, the retail book, which has recently
grown rapidly and contains a high portion of unsecured lending, is
the main driver of current and likely future loan impairment.  A
small cushion of liquid assets, equal to just 11% of customer and
interbank funding as of end-February 2009, and the on demand
nature of most customer funding makes the bank's stand alone
liquidity position weak.  In October 2008, DCB required liquidity
support from MBRD in order to withstand a deposit run.

Further asset quality deterioration could undermine the banks'
stand-alone financial profiles and put downward pressure on their
Individual Ratings.  Upside potential for the ratings is currently
very limited given the operating environment and loan impairment
trends.

MBRD is a medium-sized Russian bank, 95%-owned by Sistema.
Servicing the needs of Sistema remains an important part of MBRD's
business, but the bank has also developed a sizeable third-party
customer franchise.  In 2008, MBRD acquired a 66% stake in
Luxembourg-based East-West United Bank from Sistema.  At present,
EWUB's lending operations are mainly cash-backed and undertaken
for MBRD and other, non-related, Russian banks.  In February 2009,
MBRD became the sole owner of DCB, which was acquired by Sistema
in 2007.  DCB is a small-sized Russian bank based in Khabarovsk
with a broad presence in other regions of the far east of Russia.

The rating actions are:

MBRD

  -- Long-term Issuer Default Rating: affirmed at 'B+'; Outlook
     Negative

  -- Short-term IDR: affirmed at 'B'

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

  -- Support Rating: affirmed at '4'

  -- National Long-term Rating: affirmed at 'A-(rus)' (A minus):
     Outlook Negative

DCB

  -- Long-term Issuer Default Rating: affirmed at 'B+'; Outlook
     Negative

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'E'

  -- Support Rating: affirmed at '4'

  -- National Long-term Rating: affirmed at 'A-(rus)' (A minus);
     Outlook Negative


LEADER ZAO: Fitch Assigns 'BB-' Long-Term Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has assigned the Russia-based asset management
company ZAO Leader a Long-term Issuer Default Rating of 'BB-' (BB
minus) with a Stable Outlook and a Short-term IDR of 'B'.

The ratings reflect Leader's mostly monoline business of pension
fund management; significant reliance on one large customer, NPF
Gazfund (Gazfund), a Gazprom-('BBB'/Negative) related pension
fund; volatile elements of its revenues; moderate proprietary risk
appetite; and various risks inherent in its contemplated strategy
of large-scale infrastructure project management and limited
retail expansion.  The ratings also consider Leader's limited
investment risks; guaranteed fee income from Gazfund; zero
leverage; currently solid capital position and strong ownership by
Sogaz (rated 'BB'/Stable), one of the country's largest insurance
groups, implying the potential for support should the need arise.

A significant part of Leader's business is generated by Gazfund,
whose funds under management make up almost 95% of Leader's FUM.
It is also a major earnings contributor, accounting for 87% of
Leader's total fee income in 9M08.  The strong relationship
between Leader and Gazfund has roots in Leader's previous majority
ownership by Gazfund (currently it owns 19.9% of Leader).  The fee
structure has a guaranteed component, significantly protecting
Leader's profitability.

Leader's overall risk profile is moderate, with most risks
stemming mainly from proprietary trading, as most investment-
driven risks are borne by investors.  As mitigating factors, Fitch
notes Leader currently has zero debt and a comfortable liquidity
position (although there is some seasonality in fee payments by
Gazfund).  The company's risk profile may increase with its plans
to expand into the management of infrastructure projects,
especially if debt is employed to finance the warehousing of
assets before their transfer to client portfolios.  However, the
company has informed Fitch that the debt of the infrastructure
companies will be borne directly by investors.

The upside potential for Leader's ratings is presently limited.
Negative pressure could arise from a significant increase in
leverage, a sustained weakening of performance and/or reduced
capitalization.

Leader is the largest asset management company in Russia with
total FUM of RUB241 billion at end- 2008.  Insurance company,
Sogaz, has a 75% + 1 share in Leader.  Sogaz is part of the St.
Petersburg-based bank Rossiya group.


MOSCOW BANK: Fitch Affirms Individual Rating at 'D/E'
-----------------------------------------------------
Fitch Ratings has affirmed the ratings of Russia's Moscow Bank for
Reconstruction and Development and its subsidiary Dalcombank,
including their respective Long-term Issuer Default Ratings at
'B+' with Negative Outlooks.

Fitch has also assigned MBRD's RUB5 billion issue of fixed-rate
bonds a National Long-term Rating of 'A-(rus)' (A minus).  The
bond will mature in February 2014, although there is an option
available to bondholders to submit the bond for early repayment in
March 2010.

MBRD's and DCB's IDRs are driven by potential support, in case of
need, from Sistema JSFC (Sistema, rated 'BB-' (BB
minus)/Negative), which is MBRD's main shareholder.  The future
direction of the banks' ratings is likely to depend on Sistema's
Long-term IDR and Fitch's view of Sistema's propensity to support
MBRD and DCB.  The Negative Outlooks assigned to MBRD's and DCB's
Long-term IDRs reflect the possibility that Sistema's ability to
provide support could weaken in the future.

MBRD's Individual Rating of 'D/E' reflects risks arising from
rapid recent loan growth and a significant deterioration in asset
quality, especially in the retail segment, which could place
renewed pressure on capital.  MBRD's regulatory capital ratio fell
to a low 10.3% in December 2008, but was strengthened by a RUB6.8
billion equity injection, which more than doubled equity, causing
the capital ratio to rise to 13.2% at end-February 2009.  However,
RUB3.3 billion of the injection was earmarked for the acquisition
of DCB by MBRD, which will give rise to sizeable goodwill within
MBRD's equity.  The liquidity of the bank is currently
comfortable, supported by funding from related parties and Central
Bank of Russia.

DCB's Individual Rating of 'E' reflects its small size, asset
quality deterioration, weak liquidity position and weak
capitalization.  As at MBRD, the retail book, which has recently
grown rapidly and contains a high portion of unsecured lending, is
the main driver of current and likely future loan impairment.  A
small cushion of liquid assets, equal to just 11% of customer and
interbank funding as of end-February 2009, and the on demand
nature of most customer funding makes the bank's stand alone
liquidity position weak.  In October 2008, DCB required liquidity
support from MBRD in order to withstand a deposit run.

Further asset quality deterioration could undermine the banks'
stand-alone financial profiles and put downward pressure on their
Individual Ratings.  Upside potential for the ratings is currently
very limited given the operating environment and loan impairment
trends.

MBRD is a medium-sized Russian bank, 95%-owned by Sistema.
Servicing the needs of Sistema remains an important part of MBRD's
business, but the bank has also developed a sizeable third-party
customer franchise.  In 2008, MBRD acquired a 66% stake in
Luxembourg-based East-West United Bank from Sistema.  At present,
EWUB's lending operations are mainly cash-backed and undertaken
for MBRD and other, non-related, Russian banks.  In February 2009,
MBRD became the sole owner of DCB, which was acquired by Sistema
in 2007.  DCB is a small-sized Russian bank based in Khabarovsk
with a broad presence in other regions of the far east of Russia.

The rating actions are:

MBRD

  -- Long-term Issuer Default Rating: affirmed at 'B+'; Outlook
     Negative

  -- Short-term IDR: affirmed at 'B'

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

  -- Support Rating: affirmed at '4'

  -- National Long-term Rating: affirmed at 'A-(rus)' (A minus):
     Outlook Negative

DCB

  -- Long-term Issuer Default Rating: affirmed at 'B+'; Outlook
     Negative

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'E'

  -- Support Rating: affirmed at '4'

  -- National Long-term Rating: affirmed at 'A-(rus)' (A minus);
     Outlook Negative


PROMSVYAZBANK: Moody's Changes Outlook on 'D' BFSR to Negative
--------------------------------------------------------------
Moody's Investors Service has changed the outlook on the D bank
financial strength rating and Ba2 long-term global local and
foreign currency deposit ratings of Promsvyazbank (Russia) to
negative from stable.  The outlook on Promsvyazbank's senior
unsecured debt rating of Ba2 and the bank's subordinate debt
rating of Ba3 was also changed to negative from stable.

This rating action is driven by the rating agency's concerns about
the potential impact of the enduring economic downturn in Russia
on Promsvyazbank's asset quality and financial performance which
is likely to exert further negative pressure on the bank's capital
levels.

Moody's notes that, although Promsvyazbank's credit underwriting
standards have been satisfactory to date, the credit losses and
loan loss provision charges are likely to increase going forward.
This reflects the overall deterioration of the operational and
economic environment in Russia and the high levels of
concentration in the bank's loan book.  The bank's credit exposure
to the real estate and construction sector -- which has been
particularly affected by the crisis -- exceeds 100% of its Tier 1
capital, the level of single-name concentration (and hence
vulnerability of Promsvyazbank to financial standing of certain
large borrowers) has also been high.

"Promsvyazbank's capitalization has historically been kept at a
fairly modest level compared to the bank's peers, although in the
past Moody's witnessed the commitment of Promsvyazbank's
shareholders to make regular capital injections, when necessary,"
said Olga Ulyanova, a Moscow-based Moody's Associate Vice
President -- Analyst and lead analyst for this issuer.  "Given the
increasingly tough operating conditions, the possible decline in
financial performance and the rapidly weakening asset quality
evidently necessitate strengthened capital cushion to absorb
potential unexpected losses, while there remains a degree of
uncertainty as to the readiness and/or financial flexibility of
the shareholders to meet these increased requirements."

Moody's explained that it has applied a number of scenarios (base
and stressed) to Promsvyazbank's loan book and revealed that the
bank's capital adequacy, although currently reasonable -- with its
capital adequacy ratio amounting to 13.3% at YE2008, according to
preliminary IFRS figures, after the RUB4 billion (approximately
US$135 million) capital injection in December 2008 -- may rapidly
decline as soon as the overall asset quality deteriorates.  As
neither of the two scenarios can be ruled out in the low economic
cycle, the rating agency noted that in its further analysis of
Promsvyazbank's credit standing it will primarily focus on the
bank's ability (i) to maintain satisfactory financial fundamentals
-- in particular asset quality and liquidity -- against a
background of worsening economic scenarios and (ii) to raise new
capital, when needed.  Moody's cautioned that in the event of a
material weakening of any of the above-mentioned rating factors,
it may consider downgrading Promsvyazbank's BFSR and deposit and
debt ratings.

More positively, Moody's said that Promsvyazbank's liquidity
profile is currently being maintained at an acceptable level, with
the bank's funding sources being sufficiently diversified, while
its assets and liabilities are well-matched in terms of
maturities, and the portion of liquid assets comprises
approximately a quarter of the bank's total balance sheet.

Moody's previous rating action on Promsvyazbank was on May 13,
2008 when the rating agency upgraded the bank's ratings to Ba2/Not
Prime/D from Ba3/Not Prime/D-, with stable outlook on all of the
ratings.

Headquartered in Moscow, Russia, Promsvyazbank reported -- at
September 30, 2008 -- total consolidated assets of US$16.1 billion
(2007: US$11.9 billion) and total shareholders' equity of
US$1.4 billion (2007: US$1.1 billion), with net IFRS income for
the first nine months of 2008 of US$123.5 million (nine months of
2007: US$112.4 million).


TATFONDBANK: Moody's Confirms 'E+' Financial Strength Rating
------------------------------------------------------------
Moody's Investors Service has confirmed the B2 long-term local and
foreign currency deposit and debt ratings and the E+ bank
financial strength rating of Tatfondbank.  The outlook on all
ratings has been changed to negative.

This rating action concludes the review of the bank's rating
initiated by Moody's on November 11, 2008 as a result of
substantial weakening of Tatfondbank's liquidity position
following mass deposit withdrawals from the bank in mid-October
2008.  The ratings review focused on the bank's liquidity
position, its capital position and franchise strength
perspectives.

Since October 2008, Tatfondbank largely stabilized the deposits
outflow and obtained a liquidity injection from the Central Bank
of Russia, exceeding RUB8 billion (about US$300 million).  At the
same time, Tatfondbank increased its capital by a third (to
RUB8.33 billion at year-end 2008) through issuing new shares to
its existing corporate shareholders that are owned by the
government of the Republic of Tatarstan.  Therefore the share of
the Tatarstan government through indirect ownership currently
amounts to 31% in the bank's capital.

Moody's notes that although Tatfondbank's liquidity position has
stabilized significantly over the past few months, it still
remains vulnerable to potential liquidity shocks due to its
reliance on short-term funding from the Central Bank of Russia and
deposits of retail customers, which can be withdrawn without prior
notice.  Furthermore, worsening economic conditions in Russia are
likely to continue to weaken the bank's assets quality,
profitability and capitalization.  The negative outlook assigned
to Tatfondbank's ratings is aimed at capturing these risks and
their possible impact on the ratings in the medium term.

Tatfondbank's B2 long-term deposit rating is based on Moody's
assessment that there is a moderate probability of support being
extended to the bank in the event of need by the government of the
Republic of Tatarstan.  Thus, in accordance with Moody's Joint-
Default Analysis methodology, the bank's deposit and debt ratings
incorporate its B3 Baseline Credit Assessment, and Moody's
assessment of the probability of support from the regional
government.

Moody's previous rating action on Tatfondbank was on November 11,
2008, when the rating agency placed on review for possible
downgrade the bank's B2 long-term local and foreign currency
deposit and debt ratings and the E+ BFSR.

Headquartered in Republic of Tatarstan (an autonomous area within
the Russian Federation), Tatfondbank reported total assets and
capital of RUB45.6 billion (US$1.55 billion) and RUB8.33 billion
(US$283.55 million), respectively, at year-end 2008 according to
the regulatory reports.


=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


* SERBIA: Fitch Says IMF Loan Agreement Supportive of Ratings
-------------------------------------------------------------
Fitch Ratings said the successful conclusion of negotiations,
which began, between the Republic of Serbia and the IMF for an
additional loan facility has the potential to support Serbia's
sovereign ratings by underpinning its economic adjustment in the
face of large macroeconomic imbalances and the sharp deterioration
in external economic and financial conditions.

Fitch placed Serbia's Long-term foreign and local currency Issuer
Default ratings of 'BB-' (BB minus) on Negative Outlook in
December 2008, reflecting its view that the deterioration in
global economic and financial conditions have heightened Serbia's
vulnerability given its relatively high external debt stock, wide
current account deficit, large external financing requirement and
high level of euroization on domestic balance sheets.

"Against the background of the challenging global environment and
Serbia's large external financing requirements, Fitch would view
the agreement of a substantial IMF loan agreement and the
implementation of a credible economic adjustment program as
supportive of Serbia's sovereign ratings and macroeconomic and
financial stability," said David Heslam, Director in Fitch's
sovereign team.  "Nonetheless, significant challenges remain,
consistent with the Negative Outlook on the Sovereign ratings".

Strong credit and investment growth and looser fiscal policy
contributed to a widening of Serbia's current account deficit,
which Fitch estimates reached 18% of GDP in 2008 compared with
13.3% in 2007.  The CAD needs to adjust sharply lower in order to
return external finances to a more sustainable path.  With
Serbia's main euro-area export markets in recession and lower
prices for Serbia's key metal exports, CAD adjustment will have to
come predominately from lower domestic demand.  Fitch expects that
a new IMF loan -- which would follow a EUR402.5 million
Precautionary Stand-By Arrangement approved by the IMF Board in
January 2009 -- will include a renewed requirement to narrow the
government deficit in 2009, helping to reduce domestic demand.
Under the current SBA, the government has committed to narrowing
the budget deficit to 1.5% of GDP this year, from an estimated
2.5% in 2008.  Fitch expects real GDP growth to slow to around 1%
in 2009, from 5.6% in 2008, with risks to its 2009 forecast skewed
to the downside.

Borrowing by the private sector has placed upward pressure on
Serbia's gross external debt burden.  Fitch estimates that
Serbia's gross external debt stood at 144% of external receipts at
end-2008, compared with a median of 85% for sovereigns rated in
the 'BB' range.  Fitch estimates total external debt falling due
this year at EUR6.8 billion, of which US$2.6 billion is short term
debt.  In contrast with the private sector, the sovereign's
external debt service burden is moderate.  However, it is
impossible to isolate the sovereign from broader economic
pressures.  High external debt servicing requirements of the
private sector, at a time when the availability of external credit
is constrained, could place further downward pressure on the
currency and international reserves and lead to a deterioration in
the sovereign balance sheet.  Official foreign exchange reserves
stood at EUR8 billion at end-January 2009, down from EUR9.6
billion at end-2007, partly reflecting central bank intervention
aimed at smoothing the volatility of the dinar.  The RSD has
weakened by 5% against the EUR since the beginning of 2009 and is
15% weaker than its peak in July 2008, albeit a more moderate
decline than many regional currencies.

Against this background it will be vital for Serbia not only to
reach agreement with the IMF on a new loan but to sustain
implementation of the associated economic adjustment program.  The
lack of any scheduled elections for the next four years and desire
for closer integration with the EU provides some reassurance.
However, the unwieldy seven-party governing coalition, which
contains many parties elected on a populist platform and
resistance from vested interests involve risks to sustained policy
discipline.


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


OBRASCON HUARTE: Fitch Cuts LT Issuer Default Rating to 'BB+'
-------------------------------------------------------------
Fitch Ratings has downgraded Spanish construction group Obrascon
Huarte Lain SA's Long-term Issuer Default Rating and senior
unsecured rating to 'BB+' from 'BBB-' (BBB minus) and downgraded
the Short-term IDR to 'B' from 'F3'.  The agency has
simultaneously placed the Long-term IDR and senior unsecured
rating on Rating Watch Negative.  The downgrades primarily reflect
concerns about medium-term cash flows from OHL's concession
investments, which will likely be materially less than previously
expected.

OHL has increased debt levels at the parent company in recent
years to finance equity investments into ring-fenced concession
projects.  This has led to an increase in OHL's leverage (net
debt/ EBITDAR, adjusted for seasonality, non-recourse debt and
ring-fenced concession cash flows) to 2.8x as of FYE08 (based on
unaudited accounts), from 2.3x at FYE07.  Fitch had previously
assumed that this increase in debt would be offset, over the
medium-term, by a more stable cash flow profile deriving from
substantial recurring concessions dividends.  However, this now
seems less likely due to two factors.  Firstly, and contrary to
previous guidance, OHL has indicated it will seek to churn an
element of its concessions portfolio by selling mature, cash-
generative concessions and using the proceeds to invest in
immature concessions (concessions in the initial construction
stage), which are typically higher risk and initially less cash
generative.  Secondly, the weak state of the global financial
markets will make it harder for OHL to release cash from the
concessions business via disposals or refinancing of existing
projects.

Although Fitch expects OHL's construction cash flows to hold up
well over the next 12 months due to its large contracted order
book (worth approximately EUR6.0 billion, up 13.6% yoy), this
business is cyclical and exposed to working capital swings.
Indeed, the currently weak conditions in many of OHL's end
markets, such as Spain and Eastern Europe, could result in the
order book shrinking significantly during 2009, which would reduce
cash flows in a lagged fashion during 2010 and 2011.

OHL's credit profile could also be adversely affected by the fact
that the concessions business represents a growing contingent
liability for the parent company.  Although the parent is not
legally required to support its concessions as they are typically
financed on a non-recourse basis, it may decide to make equity
injections to support a failing concession.  Although Fitch does
not view this as a new concern, the risk continues to increase as
the size of OHL's concession portfolio grows.  Moreover, there is
now tangible evidence of such support, with OHL having made an
equity injection during 2008 to support an underperforming Spanish
concession.

The rating action also reflects OHL's reliance on short-term
credit lines as a source of liquidity.  Although its liquidity
profile remains satisfactory, with a liquidity score (sources of
liquidity/uses of liquidity over the next 12 months) of 1.4x as of
FYE08, much of the back-up liquidity consists of short-term credit
facilities (EUR904 million at FYE08).  Given the weak state of the
banking system and increasing aversion to the Spanish construction
sector, there is a now a heightened risk that OHL's liquidity
position will suffer from an inability to renew these lines.

Fitch will resolve the RWNs applied to OHL's ratings over the next
three months following a further review of OHL's concession
portfolio, order book and liquidity profile.  A future rating
downgrade could consist of more than one notch.


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


UBS AG: Elects Three Members to Its Board
-----------------------------------------
UBS AG said Michel Demare, Ann F. Godbehere and Axel P. Lehmann
have been nominated as members of its board of directors.

Election of the candidates will take place at the bank's annual
general meeting on April 15, 2009.

Current board members Ernesto Bertarelli, Gabrielle Kaufmann-
Kohler and Joerg Wolle have decided not to stand for re-election
for a further one-year term, UBS said.

UBS earlier said it nominated Kaspar Villiger as chairman of the
board after Peter Kurer decided not to stand for re-election at
the April 15 AGM.

Gabrielle Kaufmann-Kohler and Joerg Wolle were members of the
Board of Directors for three years, and Ernesto Bertarelli was a
member for seven years; he is currently the longest-serving member
of the Board.

Michel Demare (1956) joined ABB as a member of the Executive
Committee and Chief Financial Officer (CFO) in 2005 and added the
role of President of Global Markets in November 2008.  Between
February and September 2008, he acted as interim Chief Executive
Officer of ABB.  Mr. Demare joined ABB from Baxter International,
a global healthcare company, where he was CFO of Baxter Europe
from 2002 to 2005. Prior to this role, he spent 18 years at the
Dow Chemical Company.  Mr. Demare began his career as an officer
in the Multinational Banking division of Continental Illinois Bank
of Chicago, based in Antwerp and Brussels.  He has graduated with
an MBA from the Katholieke Universiteit Leuven (Belgium) and a
degree in applied economics from the Universite Catholique de
Louvain (Belgium).  Mr. Demare is a Belgian citizen.

Ann F. Godbehere (1955) was asked by the UK government to act as
CFO of Northern Rock during the initial phase of the business'
public ownership from February 2008 until January 2009.  Prior to
this role, she served as CFO of Swiss Re from 2003 to 2007.  Ms.
Godbehere is a non-executive director of Prudential Plc and a
fellow of the Certified General Accountants Association of Canada.
She is on the Board of the Lloyd’s syndicate Atrium Underwriters,
which was acquired in 2007 by Ariel Holdings, the insurance
company, of whose Board she is also a member.  Ms. Godbehere is a
Canadian and British citizen, and is a resident of Zurich.

Axel P. Lehmann (1959) is a member of the Group Executive
Committee and has been Group Chief Risk Officer of Zurich
Financial Services (Zurich) since January 2008. In addition he is
responsible for Zurich’s Group IT.  He joined Zurich in 1996 as a
member of the executive management team of Zurich Switzerland and
subsequently held various executive management positions for
Zurich in Switzerland, Europe and North America.  Mr. Lehmann is
an honorary professor for business administration and service
management and Chairman of the Board of the Institute of Insurance
Economics (I.VW-HSG) at University of St. Gallen in Switzerland.
He holds a PhD and a master's degree in business administration
and economics from the University of St. Gallen and is a graduate
of the Wharton Advanced Management Program. He is a Swiss citizen.

                          About UBS AG

Based in Zurich, Switzerland, UBS AG (VTX:UBSN) --
http://www.ubs.com/-- is a global provider of financial services
for wealthy clients.  UBS's financial businesses are organized on
a worldwide basis into three Business Groups and the Corporate
Center.  Global Wealth Management & Business Banking consists of
three segments: Wealth Management International & Switzerland,
Wealth Management US and Business Banking Switzerland.  The
Business Groups Investment Bank and Global Asset Management
constitute one segment each.  The Industrial Holdings segment
holds all industrial operations controlled by the Group.  Global
Asset Management provides investment products and services to
institutional investors and wholesale intermediaries around the
globe.  The Investment Bank operates globally as a client-driven
investment banking and securities firm.  The Industrial Holdings
segment comprises the non-financial businesses of UBS, including
the private equity business, which primarily invests UBS and
third-party funds in unlisted companies.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Mar. 9,
2009, Fitch Ratings downgraded UBS's Individual rating to 'D' from
'C' reflecting Fitch's concerns over the medium-term earnings
outlook for the bank amid the impact of ongoing reputational and
litigation issues on the stability of its key private banking and
wealth management franchise and persistently challenging market
conditions facing its investment banking franchise.  The Rating
Watch Negative on the Individual rating has been removed.


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


DONBASS GEOLOGY: Creditors Must File Claims by March 27
-------------------------------------------------------
Creditors of OJSC Donbass Geology Subsidiary Company Torez
Geological and Investigation Expedition (EDRPOU 34273866) have
until March 27, 2009, to submit proofs of claim to:

         O. Manzhur
         Insolvency Manager
         Office 7
         Burdenko St. 36
         83052 Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 42/81b.

The Court is located at:

         The Economic Court of Donetsk
         Artem street 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         State Enterprise Granit
         Gagarin avenue 159
         Torez
         86600 Donetsk
         Ukraine


FORTEKS INVEST: Creditors Must File Claims by March 27
------------------------------------------------------
Creditors of LLC Forteks Invest (EDRPOU 33294597) have until
March 27, 2009, to submit proofs of claim to E. Golub,
Insolvency Manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 44/168-b-49/308-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Forteks Invest
         Pankovskaya St. 6B
         01033 Kiev
         Ukraine


RODOVID BANK: NBU Introduces Provisionary Administration
--------------------------------------------------------
Kyiv Post reports that the National Bank of Ukraine on Monday,
March 16, introduced a provisionary administration at OJSC Rodovid
Bank.

The report relates NBU in a March 16 press release said "the
introduction of provisionary administration is a precondition for
the state's participation, jointly with Istil Group, in the
additional capitalization of Rodovid Bank".  The report recalls
Istil in March planned to go through the purchase of a 51% stake
in Kyiv-based OOO RB Capital-Group, which owns a 76.8% stake in
Rodovid.

Citing NBU's letter to banks, the report discloses independent
expert Viktor Myronenko has been appointed provisionary
administrator at Rodovid.

The report states a moratorium on the satisfaction of the claims
of creditors for a six-month period has been introduced at
Rodovid.  The moratorium, which will last until September 15,
2009, is aimed at creating favorable conditions to improve the
financial state of the bank, the report notes.

Headquartered in Kyiv, Ukraine, OJSC Rodovid Bank --
http://www.rodovidbank.com/-- is a universal banking institution
that provides banking services to businesses and retail customers
throughout Ukraine.  As of December 31, 2008 the bank ranked 20th
in Ukraine (out of 184 licensed and operating Ukrainian banks) in
terms of total assets (US$1.714 billion), 22th in terms of total
corporate loan portfolio (US$848 million), 19th in terms of total
retail loan portfolio (US$434 million), 21th in terms of total
corporate deposits (US$361 million), 15th in terms of total retail
deposits (US$459 million).  With 2,868 employees the bank
currently operates in all 27 regions of Ukraine.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Feb. 16,
2009, Fitch Ratings downgraded the Long-term Issuer Default Rating
of Ukraine's Rodovid Bank to 'D' from 'CC'.

The downgrade of the LT IDR reflects Fitch's understanding that RB
is currently not servicing all of its liabilities in full in a
timely manner.  At the same time, the agency has withdrawn all the
bank's ratings and Fitch will no longer provide rating or
analytical coverage of RB.

As reported in the Troubled Company Reporter-Europe on Oct. 8,
2008, Moody's Investors Service placed on review for possible
downgrade Rodovid Bank's E+ bank financial strength rating (BFSR)
and B3 long-term local and foreign currency deposit and debt
ratings.


V. P. C. INDUSTRIES: Creditors Must File Claims by March 27
-----------------------------------------------------------
Creditors of LLC V. P. C. Industries (EDRPOU 35265463) have until
March 27, 2009, to submit proofs of claim to:

         A. Ocheretiany
         Insolvency Manager
         Office 7/4
         Stalsky St. 26
         Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 44/56-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC V. P. C. Industries
         Kikvidze St. 18
         01103 Kiev
         Ukraine


YUNIK-COM LLC: Creditors Must File Claims by March 27
-----------------------------------------------------
Creditors of LLC YUNIK-COM (EDRPOU 34287250) have until March 27,
2009, to submit proofs of claim to:

         A. Ocheretiany
         Insolvency Manager
         Office 7/4
         Stalsky St. 26
         Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No 44/57-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Yunik-Com
         Office 7
         Gorky St. 138
         03150 Kiev
         Ukraine


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


CARRINGWORTH LTD: Goes Into Administration; 250 Jobs at Risk
------------------------------------------------------------
Worthing Herald reports that manufacturing company Carringworth
Ltd has gone into administration after being hit by the credit
crisis.

The company, which is thought to employ at least 250 workers at
Mackleys Industrial Estate, called in administrators
PricewaterhouseCoopers on Monday, March 16.


CENTREUNIQUE LTD: Appoints Administrators from Grant Thornton
-------------------------------------------------------------
Keith Hinds and Leslie Ross of Grant Thornton UK LLP were
appointed joint administrators of Centreunique Ltd. on Feb. 27,
2009.

The company can be reached at:

         Centreunique Ltd.
         P.O. Box 403
         2 Denby Dale Road
         Wakefield
         West Yorkshire
         WF1 2WT
         England


COMPTECH DEVELOPMENTS: Brings in Joint Administrators from PwC
--------------------------------------------------------------
David Christian Chubb and Gillian Eleanor Bruce of
PricewaterhouseCoopers LLP were appointed joint administrators of
Comptech Developments (U.K.) Ltd. on March 4, 2009.

The company can be reached at:

         Comptech Developments (U.K.) Ltd.
         Gloucester House
         Church Walk
         Burgess Hill
         West Sussex
         RH15 9AS
         England


CONSORTIA LTD: Taps Joint Administrators from Grant Thornton
------------------------------------------------------------
Keith Hinds and Leslie Ross of Grant Thornton UK LLP were
appointed joint administrators of Consortia Ltd. on Feb. 27, 2009.

The company can be reached at:

         Consortia Ltd.
         P.O. Box 403
         2 Denby Dale Road
         Wakefield
         West Yorkshire
         WF1 2WT
         England


EIRLES FOUR: Fitch Cuts Ratings on Five Series of Notes to 'C'
--------------------------------------------------------------
Fitch Ratings has downgraded Tsar 05 Portfolio Credit Default
Swaps and Eirles Four's and Eirles Two's floating- and variable-
rate notes, removed class A from Rating Watch Negative and
assigned Recovery Ratings.

Rating actions:

  -- US$4,846,653,144 class A CDS providing protection on 94.35%
     of the reference portfolio: downgraded to 'C' from 'B';
     removed from RWN; assigned a Recovery Rating of 'RR3'

  -- US$102,737,745 class B CDS (2%): downgraded to 'C' from
     'CCC'; assigned a Recovery Rating of 'RR6'

  -- US$46,231,985 class C CDS (0.9%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$46,231,985 class D CDS (0.9%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$30,821,324 class E CDS (0.6%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$126 million Eirles Four Series 9 notes due 2012 (ISIN
     XS0152866280): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR15 million Eirles Four Series 10 notes due 2012 (ISIN
     XS0154931512): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 15 notes due 2013 (ISIN
     XS0161648364): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 16 notes due 2013 (ISIN
     XS0161648018): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 54 notes due 2015 (ISIN
     XS0173544007): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR10 million Eirles Two Series 110 notes due 2016 (ISIN
     XS0197731325): downgraded to 'C' from 'CCC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR10 million Eirles Two Series 117 notes due 2016 (ISIN
     XS0197731598): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

The downgrades reflect credit deterioration to the collateral pool
that has occurred since the last review.  Approximately 26% of the
assets are now sub investment grade and 21% are rated 'CCC+' and
below compared to 4% and 2% respectively at the last review in May
2008.  The class A credit enhancement level of 5.65% compares
unfavorably to the 9% exposure to 'C'-rated portfolio reference
entitles -- primarily US Alt-A RMBS and CDOs of US RMBS.
Furthermore, given the current macroeconomic climate, Fitch
expects further negative portfolio migration which could result in
a higher percentage of non-investment grade assets.  Fitch makes a
three notch downward adjustment for any names on Rating Watch
Negative for default analysis.  A total 9% of the portfolio is on
RWN.

As per the trustee report dated February 12, 2009, the portfolio
contains 206 assets from 188 obligors, with the largest obligor
accounting for approximately 4% of the outstanding portfolio
amount, and the three largest obligors accounting for 8% of the
outstanding portfolio amount.  The portfolio is composed of
approximately 87% of US reference entities including a 6% exposure
to US sub-prime RMBS reference entities.  In addition, there is
indirect exposure to US sub-prime RMBS through 14% of the
portfolio that references US structured finance CDOs.  The largest
country concentrations are the United States and the United
Kingdom, making up 87% and 12% of the portfolio respectively.

Given the performance and Fitch's outlook, the credit enhancement
levels of 5.65% for class A, 3.65% for class B and Eirles Two
Series 110, 2.75% for class C, 1.85% for class D and Eirles Two
Series 117, 1.76% for Eirles Four Series 9, 1.25% for class E and
Eirles Four Series 10 and 15, and 0.95% for Eirles Four Series 16
and 54 are not sufficient to justify the previous ratings.

The initial transaction consists of five unfunded CDS between
Deutsche Bank AG ('AA-' ((AA minus))/Rating Watch Negative/'F1+')
and Royal Bank of Scotland plc ('AA-' ((AA minus))/Stable/'F1+'),
subsequent to which Deutsche Bank issued several series of credit-
linked notes referencing the same portfolio.  All seven Eirles
notes above have been issued out of the EUR10 billion secured
notes programs of Eirles Four and Eirles Two respectively.  The
initial portfolio target balance of US$7 billion was not reached
by the end of the ramp-up period in April 2004, setting the
maximum balance at US$5.73 billion.  Asset additions and removals
are subject to stringent portfolio guidelines.


EIRLES TWO: Fitch Cuts Ratings on Two Series of Notes to 'C'
------------------------------------------------------------
Fitch Ratings has downgraded Tsar 05 Portfolio Credit Default
Swaps and Eirles Four's and Eirles Two's floating- and variable-
rate notes, removed class A from Rating Watch Negative and
assigned Recovery Ratings.

Rating actions:

  -- US$4,846,653,144 class A CDS providing protection on 94.35%
     of the reference portfolio: downgraded to 'C' from 'B';
     removed from RWN; assigned a Recovery Rating of 'RR3'

  -- US$102,737,745 class B CDS (2%): downgraded to 'C' from
     'CCC'; assigned a Recovery Rating of 'RR6'

  -- US$46,231,985 class C CDS (0.9%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$46,231,985 class D CDS (0.9%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$30,821,324 class E CDS (0.6%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$126 million Eirles Four Series 9 notes due 2012 (ISIN
     XS0152866280): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR15 million Eirles Four Series 10 notes due 2012 (ISIN
     XS0154931512): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 15 notes due 2013 (ISIN
     XS0161648364): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 16 notes due 2013 (ISIN
     XS0161648018): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 54 notes due 2015 (ISIN
     XS0173544007): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR10 million Eirles Two Series 110 notes due 2016 (ISIN
     XS0197731325): downgraded to 'C' from 'CCC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR10 million Eirles Two Series 117 notes due 2016 (ISIN
     XS0197731598): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

The downgrades reflect credit deterioration to the collateral pool
that has occurred since the last review.  Approximately 26% of the
assets are now sub investment grade and 21% are rated 'CCC+' and
below compared to 4% and 2% respectively at the last review in May
2008.  The class A credit enhancement level of 5.65% compares
unfavorably to the 9% exposure to 'C'-rated portfolio reference
entitles -- primarily US Alt-A RMBS and CDOs of US RMBS.
Furthermore, given the current macroeconomic climate, Fitch
expects further negative portfolio migration which could result in
a higher percentage of non-investment grade assets.  Fitch makes a
three notch downward adjustment for any names on Rating Watch
Negative for default analysis.  A total 9% of the portfolio is on
RWN.

As per the trustee report dated February 12, 2009, the portfolio
contains 206 assets from 188 obligors, with the largest obligor
accounting for approximately 4% of the outstanding portfolio
amount, and the three largest obligors accounting for 8% of the
outstanding portfolio amount.  The portfolio is composed of
approximately 87% of US reference entities including a 6% exposure
to US sub-prime RMBS reference entities.  In addition, there is
indirect exposure to US sub-prime RMBS through 14% of the
portfolio that references US structured finance CDOs.  The largest
country concentrations are the United States and the United
Kingdom, making up 87% and 12% of the portfolio respectively.

Given the performance and Fitch's outlook, the credit enhancement
levels of 5.65% for class A, 3.65% for class B and Eirles Two
Series 110, 2.75% for class C, 1.85% for class D and Eirles Two
Series 117, 1.76% for Eirles Four Series 9, 1.25% for class E and
Eirles Four Series 10 and 15, and 0.95% for Eirles Four Series 16
and 54 are not sufficient to justify the previous ratings.

The initial transaction consists of five unfunded CDS between
Deutsche Bank AG ('AA-' ((AA minus))/Rating Watch Negative/'F1+')
and Royal Bank of Scotland plc ('AA-' ((AA minus))/Stable/'F1+'),
subsequent to which Deutsche Bank issued several series of credit-
linked notes referencing the same portfolio.  All seven Eirles
notes above have been issued out of the EUR10 billion secured
notes programs of Eirles Four and Eirles Two respectively.  The
initial portfolio target balance of US$7 billion was not reached
by the end of the ramp-up period in April 2004, setting the
maximum balance at US$5.73 billion.  Asset additions and removals
are subject to stringent portfolio guidelines.


ENTERPRISE INNS: Moody's Cuts Corporate Family Rating to 'Ba3'
--------------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating of Enterprise Inns plc to Ba3 from Ba2 and the probability
of default rating to B1 from Ba3.  At the same time, Moody's
downgraded the rating of GBP275 million senior secured floating-
rate notes due 2031 to Ba1 from Baa3.  The outlook is stable.

The rating downgrades reflect Moody's belief that the prolonged
malaise in the pub industry is not likely to end soon given the
poor economic outlook in the UK and diminished consumer confidence
in the UK and that as a result, ETI's credit metrics are likely to
weaken further over the intermediate term beyond the ratio targets
Moody's had previously indicated for a Ba2 CFR, in particular the
consolidated leverage trending above 7.5x, and on an
unconsolidated basis leverage of 6.0x and 2.5x interest cover.

"Moody's believes that market conditions are likely to place
further downward pressure on Enterprise Inn's beer sales and
rental income, through increased discounts and rental concessions
to prevent tenant failures," said Lynn Valkenaar, a Vice
President-Senior Analyst in Moody's Corporate Finance Group.  A
report produced by the alcoholic drinks industry indicates that
beer sales in pubs are at their lowest levels since the 1930s;
2009 will be a difficult year with no outlook of recovery before
well into 2010

"Moody's downgrade is limited to one notch with a stable outlook
because the majority of ETI's large portfolio is comprised of good
quality, freehold properties which provides management with levers
at its disposal for managing the business in the face of the
current downward trend," explained Ms. Valkenaar.  "Indeed, the
majority of the properties are performing well in the
circumstances: 82% of the estate was let on substantive agreements
at September 30, 2008 and the collective EBITDA of these pubs
actually rose by 2% in the financial year.2007/08."  However, the
18% of properties not on substantive agreements is facing
considerable difficulties.  Moody's is concerned that the
proportion of struggling pubs could rise, given the ongoing
pressures within the industry sector, but the company, recognizing
this, is applying a more intensive management policy to assist
them.  At fiscal year-end 2008, overdue balances from rent
constituted less than 1% of turnover and bad debts were minimal.
Although Moody's expects this figure to rise, it will be from a
low base.

Moody's positively notes that Management has taken prudent short
and long term corrective measures to preserve the company's
overall credit profile: it is reducing the amount of capital
expenditure back to more normal levels and has engaged in a
program of asset sales from which it plans to apply the proceeds
toward the reduction of debt.  In the four months to the end of
January 2009, the sale consideration of around GBP40 million had
been identified and expected to complete by the half-year 2009.
Group-wide assets exceeded the various covenant requirements by
around 15% at fiscal year-end 2008; this should improve further as
debt is paid down.  Moreover, while the company's liquidity
profile is adequate.  Management have introduced a debt reduction
program in order to reduce the current level of GBP1 billion
syndicated bank facilities so as to provide more flexibility in
refinancing the debt which matures in May 2011.

Given the negative industry outlook, there is little upside
pressure on the ratings at present.  Downward pressure on the
ratings could result if (i) the headroom under any of the group's
various financial covenants becomes tight; e.g. the parent
company's unconsolidated net debt to EBITDA (EBITDA includes
dividends from Unique) trends towards 6.5x or interest coverage
trends towards 2.0x, (ii) the group's consolidated net debt to
EBITDA trends towards 8.5x, or (iii) a decision is made to convert
to REIT status, should it materially affect ETI's cash retention
ability.

The last rating action was implemented on January 23, 2009, when
Moody's placed ETI's ratings on review for possible downgrade.
The rating action concludes the review.

Enterprise Inns plc, headquartered in Solihull, is the second-
largest pub operator in the UK.  It has an estate of around 7,800
tenanted pubs country-wide, valued at GBP5.86 billion at
September 30, 2008.


EUROPEAN PRIME: S&P Lowers Rating on Class D Notes to 'BB'
----------------------------------------------------------
Standard & Poor's Rating Services lowered its credit ratings on
the class C and D notes issued by European Prime Real Estate No. 1
PLC, due to increased concerns about the overall credit strength
of three of the loans that represent 50% of the securitized
balance.

The notes are backed by five loans secured by U.K. commercial
properties.

The Halton Lea Shopping Centre loan, representing 11.7% of the
pool, is secured by a shopping center in Runcorn, northwest
England.  The current balance stands at GBP35.1 million and the
loan matures in October 2010.  The performance of the collateral
has declined since closing in 2005, and in 2008 the whole-loan
interest coverage ratio covenant of 1.05x was breached for the
third consecutive quarter.  This has resulted in surplus cash
being trapped.  The loan is now in special servicing.  In January
2009, the special servicer requested a re-valuation of the
property.  Pending delivery of the final valuation, it has been
reported to the servicer that the value may fall to
GBP31.5 million from GBP50.0 million (the October 2008 valuation),
primarily due to significant yield shift.  In light of these
factors, S&P consider that the risk of a principal loss has
increased.

The Grays Shopping Centre loan, representing 20.9% of the pool, is
secured against a shopping center in Grays, Essex.  The loan
matures in April 2010.  Given the secondary quality of the center
and the current stressed retail environment, S&P believes that a
loan refinancing in April 2010 may prove challenging and may
result in principal loss.  Furthermore, S&P believes that the
future performance of the property may be adversely affected by
the proximity of the Lakeside shopping center, which offers a
better tenancy mix and retail environment.

The St Enoch Shopping Centre loan, representing 31.7% of the pool,
is secured against a shopping center in Glasgow city center.  The
loan represents 50% of the whole loan (paid pari passu) that
matures in April 2012.  The property has been under refurbishment
since mid-2007 and is expected to fully re-open by the end of the
year.  As a consequence of the ongoing refurbishment, vacancy
has significantly increased since closing.  A refinancing of the
loan will depend on re-lettings; if the current macroeconomic
environment persists, this may prove challenging.  S&P consider
that principal losses may occur as a result.

S&P also notes that special servicing fees will be due from now on
for the Halton Lea Shopping Centre loan.  S&P would expect the
servicer to gain control of the asset cash flow to cover interest
payments and other transaction-related costs, including special
servicing fees.  S&P understand that the servicer may instead
charge the special servicing fees directly to the issuer, although
S&P is advised that discussions are ongoing.  Such an approach
would, in S&P's opinion, not be in line with S&P's "Prudent
Servicing Practices" criteria (see "Related Research"), which
state that the servicer must take all reasonable steps possible to
help prevent the interruption of the cash flow to bondholders.
Special servicing fees are likely to result in interest shortfalls
for noteholders but S&P believes they fall under S&P's minor
shortfall policy, given that the quantum of potential shortfalls
is expected to be minor.

                           Ratings List

              European Prime Real Estate No. 1 PLC
GBP347.758 Million Commercial Mortgage-Backed Floating-Rate Notes

                         Ratings Lowered

               Class       To                  From
               -----       --                  ----
               C           BBB                 A
               D           BB                  BBB


GRAPHEX LTD: Appoints Joint Administrators from Deloitte
--------------------------------------------------------
Ian Brown and Neil Matthews of Deloitte LLP were appointed joint
administrators of Graphex Ltd. on March 4, 2009.

The company can be reached through Deloitte LLP at:

         Gainsborough House
         34-40 Grey Street
         Newcastle upon Tyne
         NE1 6AE
         England


MCCARTHY & STONE: LandesBank Opposes Payout to Senior Managers
--------------------------------------------------------------
Mark Kleinman at The Daily Telegraph reports that LandesBank
Berlin has warned it will do everything in its power to block a
pay package to senior managers of McCarthy & Stone plc under a
proposed restructuring plan for the company.

Landesbank Berlin, the report discloses, is part of a 60-strong
group of lenders negotiating a restructuring of McCarthy & Stone.

The report relates in a March 6 letter to Howard Phillips,
McCarthy & Stone's chief executive, and Howard Ball, its chief
financial officer, Landesbank Berlin said "Although we learned
that you were agreed a bonus on the successful completion of the
restructuring by the board back in July 2008, we are aware that
the circumstances that have transpired are very different [now]."

Landesbank Berlin, the report notes, regarded the payout "as being
unjustified and/or unusual in such circumstances".

According to the report, under the restructuring plan, 16
directors and senior managers at McCarthy & Stone could earn an
annual bonus pool of up to GBP3.8 million depending on whether it
meets a series of conditions relating to cash generation, cost
reductions and revenue targets.  In the first full year following
the restructuring, the bonuses will be capped at GBP2.8 million,
the report states.

The report adds there will also be a payout if a sale or other
'valuing transaction' places an enterprise value on McCarthy &
Stone of GBP500 million or more.  Up to GBP43.5 million will be
paid out if the enterprise value reaches GBP790 million, the
report says.

                      Debt-for-Equity Swap

As reported in The Troubled Company Reporter-Europe on Feb. 25,
2009, The Daily Telegraph said McCarthy & Stone agreed on a debt-
for-equity swap with its senior lenders made up of a banking
syndicate that includes 60 creditors and is led by HSBC and Lloyds
Banking Group.

In a Feb. 18 report, Reuters, citing sources close to the deal,
disclosed that McCarthy & Stone's lending banks will cut debt to
GBP500 from GBP700 million, but want to take all of the equity in
the new company to help recover their investment.

Following the agreement between the company and its senior
lenders, lawyers have sent out lock-up agreements to the 60
creditors which binds them to the deal, The Daily Telegraph
stated.  According to the Daily Telegraph, some 75pc of senior
leaders have to vote for the scheme, which needs court approval.
The process
is expected to be completed by the end of April, the Daily
Telegraph noted.

Reuters recalled in 2006 a consortium led by David and Simon
Reuben and Sir Tom Hunter acquired McCarthy & Stone for GBP1.1
billion.  The GBP1.04 billion loan backing the acquisition
included GBP890 million of senior debt and GBP150 million pounds
of junior debt, split into GBP40 million of second lien and GBP110
million pounds of mezzanine, Reuters added.

According to the Daily Telegraph, the debt-for-equity swap will
see the so-called mezzanine loans -- made by the Reubens and Sir
Tom -- wiped out.  The Guardian stated junior lenders would lose
about GBP200 million of second line (charge) and mezzanine debt
holdings.  The junior lenders are threatening to take senior
lenders to court if they are offered nothing, Reuters said citing
sources close to the deal.

McCarthy & Stone, the Daily Telegraph recounted, struggled to pay
interest on more than GBP900 million of borrowings that were used
to finance its acquisition.  Reuters disclosed the company, which
has been in talks since last August about renegotiating its buyout
debt, reached a standstill agreement with lenders after
missing a payment in December.  Reuters noted it was unable to
service its debt after the housing market slump.

Based in Bournemouth, McCarthy & Stone plc --
http://www.mccarthyandstone.co.uk-- McCarthy & Stone seeks land
to develop into private retirement residences.  The company buys
sites formerly used as garages, pubs, cinemas, and offices, and
then designs and constructs retirement flats throughout England
and in Scotland.


MORTGAGES NO 7: S&P Puts 'BB' Rating on Class E Notes on Watch Neg
------------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its credit ratings on the class D and E notes issued by Mortgages
No. 7 PLC.  S&P also placed on CreditWatch positive its ratings on
the class B notes issued by Mortgages No. 6 PLC.  All other notes
in these transactions remain unaffected.

The CreditWatch placements follow S&P's initial review of the most
recent loan-level information.

Both deals drew on their reserve funds on the January payment
date.  Mortgages No. 6 drew 7.85% of its reserve fund and
Mortgages No. 7 drew 26.41%.

Total arrears were 47.52% for Mortgages No. 6 and 46.26% for
Mortgages No. 7.  These levels are above S&P's nonconforming index
and there have been substantial increases in 90+ day
delinquencies.  S&P is concerned that, given recent house price
declines, repossessions and losses will continue to increase,
which may lead to further reserve fund draws and potentially
affect the interest payments on the junior notes.  S&P believes
this to be more likely for Mortgages No. 7, as it had a larger
reserve fund draw and has a pool of mortgages with a higher loan-
to-value ratio than Mortgages No. 6.

S&P notes that credit support has increased significantly for the
senior classes in these deals.  As of the January investor report,
the pool factor was 16.58% for Mortgages No. 6 and 30.75% for
Mortgages No. 7. S&P will now carry out a more detailed analysis
to investigate whether the class B notes in Mortgages No. 6 can
attain a higher rating level.

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 will pay particular attention to current
repossessions, losses, and collection rates.  The results of S&P's
analysis, together with any effects on the ratings on any of the
notes, will be published in due course.

                           Ratings List

             Ratings Placed on CreditWatch Negative

                       Mortgages No. 7 PLC
       GBP757.5 Million Mortgage-Backed Floating-Rate Notes

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

              Ratings Placed on CreditWatch Positive

                       Mortgages No. 6 PLC
       GBP595.9 Million Mortgage-Backed Floating-Rate Notes

                                 Rating
                                 ------
                Class       To                From
                -----       --                ----
                B           AA/Watch Pos      AA


POWERTRONIC DRIVE: Taps Joint Administrators from Grant Thornton
----------------------------------------------------------------
John Neville Whitfield and David John Dunckley of Grant Thornton
UK LLP were appointed joint administrators of Powertronic Drive
Systems Ltd. on March 4, 2009.

The company can be reached at:

         Powertronic Drive Systems Ltd.
         Treetops House
         Gillotts Lane
         Henley-on-Thames
         Oxfordshire
         RG9 1PT
         England


SENSORTRONIC LTD: Appoints Administrators from Grant Thornton
-------------------------------------------------------------
John Neville Whitfield and David John Dunckley of Grant Thornton
UK LLP were appointed joint administrators of Sensortronic Ltd. on
March 4, 2009.

The company can be reached at:

         Sensortronic Ltd.
         45 Leaver Road
         Henley-on-Thames
         Oxfordshire
         RG9 1UW
         England


TATA MOTORS: S&P Keeps 'BB-' Senior Unsecured Notes Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had kept its 'BB-'
long-term corporate credit rating on India-based automaker Tata
Motors Ltd. on CreditWatch with negative implications.  At the
same time, Standard & Poor's kept its 'BB-' issue ratings on the
company's senior unsecured notes on CreditWatch with negative
implications.

"We have kept the ratings on CreditWatch pending clarification of
the company's strategy to minimize the deterioration of its cash
flow, its funding plans for significant capital expenditure; and
its future debt composition.  S&P believes Tata Motors' cash flows
-- particularly from Jaguar and Land Rover -- and related metrics
may materially deteriorate on a consolidated basis.  That's
because, in S&P's view, the operating environment continues to be
extremely adverse for JLR and, to a decreasing extent, Tata
Motors' India operations," said Standard & Poor's credit analyst
Manuel Guerena.  "In addition, the company has high debt,
including a big proportion of short-term debt.  S&P expects the
ratings to remain on Credit Watch until Tata Motors has refinanced
the remaining US$2 billion of a bridge facility, which is due on
June 2, 2009."

Standard & Poor's originally placed the ratings on CreditWatch on
Dec. 12, 2008, when it also lowered the ratings to 'BB-' from
'BB', following a faster-than-expected deterioration in automobile
market conditions.  Tata Motors' financial profile has been
aggressive since the company acquired JLR in April 2008.

S&P will review Tata Motors' debt and funding plans in the next
few days, and believe there is a high likelihood that S&P will
lower the rating further, possibly by more than one notch.  S&P
will keep the ratings on CreditWatch until at least the
refinancing of its bridge facility is completed.


TSAR 05: Fitch Junks Ratings on Credit Default Swaps
----------------------------------------------------
Fitch Ratings has downgraded Tsar 05 Portfolio Credit Default
Swaps and Eirles Four's and Eirles Two's floating- and variable-
rate notes, removed class A from Rating Watch Negative and
assigned Recovery Ratings.

Rating actions:

  -- US$4,846,653,144 class A CDS providing protection on 94.35%
     of the reference portfolio: downgraded to 'C' from 'B';
     removed from RWN; assigned a Recovery Rating of 'RR3'

  -- US$102,737,745 class B CDS (2%): downgraded to 'C' from
     'CCC'; assigned a Recovery Rating of 'RR6'

  -- US$46,231,985 class C CDS (0.9%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$46,231,985 class D CDS (0.9%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$30,821,324 class E CDS (0.6%): downgraded to 'C' from
     'CC'; assigned a Recovery Rating of 'RR6'

  -- US$126 million Eirles Four Series 9 notes due 2012 (ISIN
     XS0152866280): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR15 million Eirles Four Series 10 notes due 2012 (ISIN
     XS0154931512): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 15 notes due 2013 (ISIN
     XS0161648364): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 16 notes due 2013 (ISIN
     XS0161648018): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- US$5 million Eirles Four Series 54 notes due 2015 (ISIN
     XS0173544007): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR10 million Eirles Two Series 110 notes due 2016 (ISIN
     XS0197731325): downgraded to 'C' from 'CCC'; assigned a
     Recovery Rating of 'RR6'

  -- EUR10 million Eirles Two Series 117 notes due 2016 (ISIN
     XS0197731598): downgraded to 'C' from 'CC'; assigned a
     Recovery Rating of 'RR6'

The downgrades reflect credit deterioration to the collateral pool
that has occurred since the last review.  Approximately 26% of the
assets are now sub investment grade and 21% are rated 'CCC+' and
below compared to 4% and 2% respectively at the last review in May
2008.  The class A credit enhancement level of 5.65% compares
unfavorably to the 9% exposure to 'C'-rated portfolio reference
entitles -- primarily US Alt-A RMBS and CDOs of US RMBS.
Furthermore, given the current macroeconomic climate, Fitch
expects further negative portfolio migration which could result in
a higher percentage of non-investment grade assets.  Fitch makes a
three notch downward adjustment for any names on Rating Watch
Negative for default analysis.  A total 9% of the portfolio is on
RWN.

As per the trustee report dated February 12, 2009, the portfolio
contains 206 assets from 188 obligors, with the largest obligor
accounting for approximately 4% of the outstanding portfolio
amount, and the three largest obligors accounting for 8% of the
outstanding portfolio amount.  The portfolio is composed of
approximately 87% of US reference entities including a 6% exposure
to US sub-prime RMBS reference entities.  In addition, there is
indirect exposure to US sub-prime RMBS through 14% of the
portfolio that references US structured finance CDOs.  The largest
country concentrations are the United States and the United
Kingdom, making up 87% and 12% of the portfolio respectively.

Given the performance and Fitch's outlook, the credit enhancement
levels of 5.65% for class A, 3.65% for class B and Eirles Two
Series 110, 2.75% for class C, 1.85% for class D and Eirles Two
Series 117, 1.76% for Eirles Four Series 9, 1.25% for class E and
Eirles Four Series 10 and 15, and 0.95% for Eirles Four Series 16
and 54 are not sufficient to justify the previous ratings.

The initial transaction consists of five unfunded CDS between
Deutsche Bank AG ('AA-' ((AA minus))/Rating Watch Negative/'F1+')
and Royal Bank of Scotland plc ('AA-' ((AA minus))/Stable/'F1+'),
subsequent to which Deutsche Bank issued several series of credit-
linked notes referencing the same portfolio.  All seven Eirles
notes above have been issued out of the EUR10 billion secured
notes programs of Eirles Four and Eirles Two respectively.  The
initial portfolio target balance of US$7 billion was not reached
by the end of the ramp-up period in April 2004, setting the
maximum balance at US$5.73 billion.  Asset additions and removals
are subject to stringent portfolio guidelines.


TURBO BETA: Moody's Downgrades Corporate Family Rating to 'B2'
--------------------------------------------------------------
Moody's Investors Service has downgraded to B2 from B1 the
corporate family rating and probability of default rating of Turbo
Beta Ltd, the ultimate holding company for drilling contractor
Abbot Group Ltd.  At the same time, Moody's downgraded to B1 from
Ba3 the rating on the US$1.625 billion Senior Facilities raised by
Turbo Alpha Ltd, the immediate holding company of Abbot Group Ltd.
LGD assessment remains unchanged at LGD3 (34%).  The ratings have
been placed on review for further possible downgrade.

The rating downgrades are prompted by Moody's view that, given the
growing likelihood of a substantial and potentially prolonged
downturn in demand for drilling and oilfield services, Abbot will
be unable to reduce its leverage (expressed as net debt to EBITDA,
as adjusted by Moody's) over the short- to medium-term at or below
4.5x in order to maintain the B1 corporate family and Ba3 senior
secured ratings.  This target ratio compares with an estimated
leverage of around 6x at year-end 2008, which is slightly above
Moody's expectations at the time ratings were assigned.

The review will focus on these issues: (i) the degree to which
declining utilization and weakening pricing across the industry is
likely to affect Abbot's medium-term drilling contracts hence the
visibility over its cash flows, (ii) the group's ability to cut
operating and capital expenditures so as to generate positive
free-cash flows in the current environment, (iii) its headroom
against covenants, and (iv) the potential support that could be
offered by its shareholder.  Moody's expects to conclude the
review within one month.

Moody's last rating action on Abbot was on April 15, 2008, when
the rating agency assigned for the first time a B1 corporate
family rating with stable outlook to Turbo Beta Ltd and a Ba3
rating with stable outlook to the Senior Facilities raised by
Turbo Alpha Ltd.

Headquartered in Aberdeen, UK, Abbot Group Ltd is a provider of
onshore and offshore drilling services to both IOCs and NOCs in
the Eastern Hemisphere.  Its ultimate owner is First Reserve
Corporation, a US private equity firm specialized in the energy
industry.  In 2008, Abbot reported revenues of around US$1.9
billion.

                            *********

Monday's edition of the TCR delivers a list of indicative prices
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                            *********


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-
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Copyright 2009.  All rights reserved.  ISSN 1529-2754.

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