TCREUR_Public/090608.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

             Monday, June 8, 2009, Vol. 10, No. 111

                            Headlines

A U S T R I A

ANNINGER & TABERHOFER: Claims Registration Period Ends June 17
DARINA HRIECHOVA: Claims Filing Period Ends June 17
ELITEPARTNER FINANCIAL: Claims Registration Period Ends June 17
ENERGY BIODIESEL: Claims Filing Deadline is June 17
HOFFMANN HANDEL: Claims Filing Period Ends June 17

SEGAFREDO ESPRESSO: Claims Registration Period Ends June 17
S-EVENTS GMBH: Claims Registration Period Ends June 17
STAGAREVIC KEG: Claims Registration Period Ends June 18


G E R M A N Y

E-MAC DE: Fitch Junks Ratings on Class E Notes From 'BB-'
GENERAL MOTORS: Sberbank to Finance 35% of Opel Acquisition Deal
HYPO REAL: Fitch Affirms Individual Rating at 'F'
TREVIRA: Files for Insolvency in Augburg Court


I R E L A N D

ALLIED IRISH: Moody's Cuts Non-Cumulative Hybrids Rating to 'B3'
ANGLO IRISH: Moody's Cuts Bank Financial Strength Rating to 'E'
BANK OF IRELAND: Moody's Affirms Cumulative Hybrids Rating at 'B1'
EBS BUILDING: Moody's Cuts Non-Cumulative Pref Shares Rating to B3
ELVA FUNDING: S&P Junks Rating on EUR100 Mil. 2007-3 Notes

OCELOT CDO I: S&P Affirms 'BB-' Rating on EUR3 Mln Class D Notes


K A Z A K H S T A N

BTA BANK: Fitch Says Nonpayment Won't Affect RMBS Transaction
GRATIS LLP: Creditors Must File Claims by June 26
M-SNUB LLP: Creditors Must File Claims by June 26
PETRO GROUP: Creditors Must File Claims by June 26
STROY TRADE 2005: Creditors Must File Claims by June 26

TEMIR TRANS: Creditors Must File Claims by June 26


L A T V I A

* LATVIA: CDS Spread Widens, May Be Forced to Devalue Lat


N E T H E R L A N D S

KHAMSIN CREDIT: S&P Junks Rating on EUR15 Mil. Floating Notes


R U S S I A

AVTOVAZ OAO: Russian Gov't to Provide RUR25 Billion Loan
AVTO-MASH LLC: Creditors Must File Claims by June 15
LES-PROM LLC: Creditors Must File Claims by June 15
MEGA-STROY LLC: Creditors Must File Claims by June 15
RSHB CAPITAL: Fitch Assigns Rating on Upcoming Senior Notes Issue

SOUTH WINERY: Creditors Must File Claims by June 15
SOVCOMBANK: Moody's Cuts Bank Financial Strength Rating to 'E'
STROY-DON LLC: Creditors Must File Claims by June 15
VIMPELCOM: Court Denies Telenor's Stay of Enforcement
VURNARSKIY STARCH: Creditors Must File Claims by June 15

* Fitch Says Russian Construction & Property Sector Liquidity Weak


S W E D E N

CONCORDIA BUS: S&P Maintains 'B-' Long-Term Corp. Credit Rating

* SWEDEN: May Part-Nationalize Banks Exposed to Baltic Crisis


S W I T Z E R L A N D

ANSHER GROUP: Claims Filing Deadline is June 15
BALACO FINANZ: Creditors Must File Claims by June 15
EFP IMMOCREDIT: Claims Filing Deadline is June 12
GENIUS GAMES: Claims Filing Deadline is June 12
KALTE-SERVICE JOHANN: Creditors Must File Claims by June 15

LUWATEC AG: Claims Filing Period Ends June 15
ZIMEX AVIATION: Creditors Must File Claims by June 15


T U R K E Y

* TURKEY: JCR Affirms 'BB-' Foreign and Local Currency Ratings


U K R A I N E

ATLANT PLUS: Creditors Must File Claims by June 13
DEMETRIS LLC: Creditors Must File Claims by June 14
ELECTROLAND LLC: Creditors Must File Claims by June 13
PIRAMIDA DTM: Court Starts Bankruptcy Supervision Procedure
RYZHEVSKY GRANIT: Court Starts Bankruptcy Supervision Procedure

UKRAINIAN METALLURGICAL: Court Starts Bankruptcy Procedure
VELIKAYA NOVOSELOVKA: Creditors Must File Claims by June 14

* FITCH: Ukrainian Construction & Property Sector Liquidity Weak


U N I T E D   K I N G D O M

BRITISH AIRWAYS: To Explore All Options to Tackle Pension Deficit
BRITISH AIRWAYS: Traffic Down 6.5% in May 2009
BRITISH AIRWAYS: S&P Gives Negative Outlook; Affirms 'BB' Rating
CARPEO LTD: Sold Out of Business Administration
CHILTERN MILLS: Bought Out of Administration by Founder

CARPET TILE: Sold to Reolandt Lewis; 34 Jobs Saved
DRACO PLC: Moody's Downgrades Rating on Class E Notes to 'Ba1'
KOP FOOTBALL: Auditors Raise Going Concern Doubt
MARLAND LTD: Administrators Secure Sale; 25 Jobs Saved
METRIX FUNDING: S&P Puts Ratings Low-B Rated Notes on Neg. Watch

MITER PRESS: To Enter Into Liquidation
SAVEKERS LTD: Sold to WTTR Holdings
STAINCLIFFE HOTEL: Christie & Co Appointed to Sell Business
STENNER LTD: Resumes Business Under New Ownership
WYATT OF WINCHESTER: Administrator Sells Business; 30 Jobs Saved

* KPMG Survey Says UK Businesses Predict Recovery in 2011
* S&P Keeps Negative CreditWatch on 49 European CMBS Tranches

* BOND PRICING: For the Week June 1 to June 5, 2009


                         *********


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


ANNINGER & TABERHOFER: Claims Registration Period Ends June 17
--------------------------------------------------------------
Creditors owed money by Anninger & Taberhofer GmbH have until
June 17, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         Dr. Axel Reckenzaun
         Annenstr. 10/I
         8020 Graz
         Austria
         Tel: 0316/713353
   Fax: 0316/713353-30
   E-mail: office@boehm-reckenzaun.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on July 1, 2009, for the
examination of claims.


DARINA HRIECHOVA: Claims Filing Period Ends June 17
---------------------------------------------------
Creditors owed money by Darina Hriechova KG have until June 17,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Maximilian Schludermann
         Reisnerstrasse 32/12
         1030 Vienna
         Austria
         Tel: 715 50 45
   Fax: 715 50 47-4
   E-mail: office@anwalt-vienna.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on July 1, 2009, for the
examination of claims.


ELITEPARTNER FINANCIAL: Claims Registration Period Ends June 17
---------------------------------------------------------------
Creditors owed money by Elitepartner Financial Advisors GmbH have
until June 17, 2009, to file written proofs of claim to the court-
appointed estate administrator:

         KAPPs GmbH
         Karntnerstr. 525-527
         8054 Graz-Strassgang
         Austria
         Tel: 03162/25955
   Fax: 0316/282013
   E-mail: kapp@kapp.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on July 1, 2009, for the
examination of claims at:

         Land Court of Leoben
         Hall IV
         First Floor
         Leoben
         Austria


ENERGY BIODIESEL: Claims Filing Deadline is June 17
---------------------------------------------------
Creditors owed money byenergy biodiesel produktion GmbH have until
June 17, 2009, to file written proofs of claim to the court-
appointed estate administrator:

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

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:10 a.m. on July 1, 2009, for the
examination of claims.


HOFFMANN HANDEL: Claims Filing Period Ends June 17
--------------------------------------------------
Creditors owed money by Hoffmann Handel GmbH have until June 17,
2009, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Susi Pariasek
         Gonzagagasse 15
         1010 Vienna
         Austria
   Tel: 533 28 55
   Fax: 533 28 55-28
   E-mail: office@anwaltwien.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on July 1, 2009, for the
examination of claims.


SEGAFREDO ESPRESSO: Claims Registration Period Ends June 17
-----------------------------------------------------------
Creditors owed money by Segafredo Espresso der S-Events GmbH & Co
KEG have until June 17, 2009, to file written proofs of claim to
the court-appointed estate administrator:

         Dr. Michael Kropiunig
         Max-Tendler-Strasse 28
         8700 Leoben
         Austria
         Tel: 03842-45019
   Fax: 03842-45019-30
   E-mail: office@ra-kropiunig.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on July 1, 2009, for the
examination of claims.


S-EVENTS GMBH: Claims Registration Period Ends June 17
------------------------------------------------------
Creditors owed money by S-Events GmbH have until June 17, 2009, to
file written proofs of claim to the court-appointed estate
administrator:

         Dr. Michael Kropiunig
         Max-Tendler-Strasse 28
         8700 Leoben
         Austria
         Tel: 03842-45019
   Fax: 03842-45019-30
   E-mail: office@ra-kropiunig.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:15 a.m. on July 1, 2009, for the
examination of claims.


STAGAREVIC KEG: Claims Registration Period Ends June 18
-------------------------------------------------------
Creditors owed money by Stagarevic KEG have until June 18, 2009,
to file written proofs of claim to the court-appointed estate
administrator:

         Dr. Eva Riess
         Zeltgasse 3/13
         1080 Vienna
         Austria
         Tel: 402 57 01-0 Serie
         Fax: 402 57 01 21
         E-mail: law@riess.co.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on July 2, 2009, for the
examination of claims.


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


E-MAC DE: Fitch Junks Ratings on Class E Notes From 'BB-'
---------------------------------------------------------
Fitch Ratings has downgraded 12 tranches of E-MAC DE 2005-I B.V.,
E-MAC DE 2006-I B.V. and E-MAC DE 2006-II B.V. originated by GMAC-
RFC Bank GmbH, and maintained the class A to D notes of each
transaction on Rating Watch Negative:

E-MAC DE 2005-I B.V. (E-MAC DE 2005-I):

  -- Class A (ISIN XS0221900243): 'AAA'; RWN; assigned a Loss
     Severity (LS) Rating of 'LS-1'

  -- Class B (ISIN XS0221901050): downgraded to 'A+' from 'AA';
     RWN; assigned 'LS-4'

  -- Class C ((ISIN XS0221902538): downgraded to 'BBB-' from 'A';
     RWN; assigned 'LS-5'

  -- Class D (ISIN XS0221903429): downgraded to 'B+' from 'BBB-';
     RWN; assigned 'LS-5'

  -- Class E (ISIN XS0221904237): downgraded to 'CCC' from 'BB-';
     assigned a Recovery Rating of 'RR5'

  -- Class F (ISIN XS0221922056): Paid in Full

E-MAC DE 2006-I B.V. (E-MAC DE 2006-I):

  -- Class A (ISIN XS0257589860): 'AAA'; RWN; assigned 'LS-2'

  -- Class B (ISIN XS0257590876): downgraded to 'A' from 'AA-';
     RWN; assigned 'LS-4'

  -- Class C (ISIN XS0257591338): downgraded to 'BB' from 'BBB+';
     RWN; assigned 'LS-4'

  -- Class D (ISIN XS0257592062): downgraded to 'B' from 'BBB-';
     RWN; assigned 'LS-5'

  -- Class E (ISIN XS0257592575): downgraded to 'CCC' from 'BB-';
     assigned 'RR5'

  -- Class F (ISIN XS0257704717): Paid in Full

E-MAC DE 2006-II B.V. (E-MAC DE 2006-II):

  -- Class A1 (ISIN XS0276932539): 'AAA'; RWN; assigned 'LS-2'

  -- Class A2 (ISIN XS0276933347): 'AAA'; RWN; assigned 'LS-2'

  -- Class B (ISIN XS0276933859): downgraded to 'A' from 'AA-';
     RWN; assigned 'LS-4'

  -- Class C (ISIN XS0276934667): downgraded to 'BB' from 'BBB+';
     RWN; assigned 'LS-5'

  -- Class D (ISIN XS0276935045): downgraded to 'B' from 'BB+';
     RWN; assigned 'LS-5'

  -- Class E (ISIN XS0276936019): downgraded to 'CCC' from 'BB-';
     assigned 'RR5'

  -- Class F (ISIN XS0276936951): affirmed at 'B+'; Outlook Stable

Fitch has maintained its ratings on the class A to D notes on RWN,
reflecting its existing concerns about the quality and accuracy of
information provided by GMAC-RFC, as stated in a Fitch comment on
January 28, 2009.  The agency has outstanding questions, regarding
the calculation of priority of payments and note balances, which
have received an inadequate response.  Moreover, additional data
which Fitch has requested regarding the performance of the deals,
specifically on the level of losses and the timing of loss
declaration in the pools as well as their treatment in the
transaction waterfall, has not been provided to the agency to
date.  If such data is not provided within the next six months,
further rating actions will follow.  Such actions would most
likely result either in a multi-category downgrade for the class A
notes or, if the agency determines that the information
outstanding is too material to maintain a rating opinion, a
withdrawal of the ratings.  The class A to D notes will remain on
RWN during this time frame.

The downgrades of the class B to E notes reflects Fitch's concerns
about the deteriorating credit quality of the underlying pools of
German residential mortgages and operational concerns regarding
the transparency of investor reports, the process of loss
allocation and the ability of GMAC-RFC to service the loans in the
future.

Fitch has reviewed its modelling assumptions, as it did in June
last year, especially with respect to the market value decline and
frequency of foreclosure assumptions, taking into account the most
recent performance data available.  The MVD assumptions, which
were based on data delivered by GMAC-RFC in early 2008, remained
unchanged compared to the previous analysis.  These figures were
in line with data collected by Fitch on the German market as a
whole during the recent German MVD update.  Foreclosure frequency
figures have been adjusted to reflect the most recent arrears
development.  Loans in arrears, by more than 3 monthly payments,
stand at 7.3% (EMAC DE 2005-I), 8.6% (EMAC DE 2006-I) and 6.5%
(EMAC DE 2006-II), as of the latest investor report (May 2009).
The updated assumptions are based solely on publicly available
data.

To date there have only been a very limited number of loss
declarations, totalling 26 cases for the three transactions.
Given the high early arrears levels and the seasoning of 26-to-45
months, the figures are comparably low.  Fitch has not received
full clarity regarding the conditions when losses are declared for
foreclosed properties.  Due to the low loss declarations,
available excess spread is not trapped in the transactions and the
reserve funds are fully funded.  As such the excess spread has
been used to redeem the class F notes (completed for EMAC DE 2005-
I and EMAC DE 2006-I) and is subsequently released to GMAC-RFC
Investments B.V.

GMAC-RFC Bank GmbH returned its German banking license in 2008.
Nevertheless, certain servicing functions are still conducted by
GMAC-RFC.  In case GMAC RFC Bank in Germany could not continue to
fulfil these functions, it is expected that Kreditwerk Hypotheken
Management GmbH (HM, rated 'RPS2') would take over as indicated in
the Sub Servicing Agreement.  Fitch expects HM to be able to cover
the majority of the tasks with the exception of certain credit
decisions that would possibly need to be taken by the security
trustee.

The performance of the class F notes of E-MAC DE 2006-II, which
have been affirmed at 'B+' with a Stable Outlook, is highly
dependent on the timing of a loss declaration.  If significant
losses are allocated on the next one or two payment dates, no
further payments on class F are expected.  Otherwise the still
outstanding EUR738,338 might be paid back from excess spread.


GENERAL MOTORS: Sberbank to Finance 35% of Opel Acquisition Deal
----------------------------------------------------------------
RIA Novosti reports that Russia's Sberbank will contribute 35% to
the EUR500 million (US$705 million) deal to purchase Opel,
part of General Motors Corp.

RIA Novosti recalls on May 31, the German government and Canada's
Magna International, backed by Russia's Sberbank and GAZ, reached
a deal that will see the consortium take over Opel.  According to
RIA Novosti, Magna will acquire a 20% stake in Opel while Russia's
state-owned Sberbank will get 35%, with carmaker GAZ, owned by
billionaire Oleg Deripaska, as an industrial partner.  The
consortium, RIA Novosti says, will be the majority shareholder,
with GM owning 35% and Opel itself retaining 10%.  RIA Novosti
discloses Sberbank CEO German Gref said the deal was aimed at
creating a transnational corporation with the inclusion of Russian
automakers into it.

"Investment in equity is one part, a small one, that has not yet
been finally defined.  The second part is debt provision:
proportionate to our 35% stake, we are financing the larger part
of the 500 million euro deal," RIA Novosti quoted Mr. Gref as
saying on the sidelines of the St. Petersburg economic forum.

RIA Novosti relates Mr. Gref said Sberbank will undoubtedly sell
the stake in the future, adding that the shareholding would be
sold to a Russian investor.

                     Investor Process

GM's planned disposal of a 65 percent stake in Opel to a
consortium led by Magna could take another half year, Christiaan
Hetzner at Reuters reports citing Alfred Hagebusch, the Frankfurt-
based insolvency lawyer involved in the investor process.

Reuters relates Mr. Hagebusch told a conference call with
reporters "The investor process certainly cannot be completed in
three weeks, and i think one should get used to a time horizon of
between three to six months".

Reuters says according to Mr. Hagebusch, were negotiations to
collapse he would likely be charged with the search to find a new
investor.  Reuters notes along with GM Europe Vice-President Eric
Stevens, Mr. Hagebusch is one of two managing directors overseeing
a trust that temporarily owns 65 percent of Opel until an investor
can be found.

                      About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars and
trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.

As reported by the Troubled Company Reporter, GM reported a net
loss of US$6.0 billion, including special items, in the first
quarter of 2009.  This compares with a reported net loss of US$3.3
billion in the year-ago quarter.  As of March 31, 2009, GM had
US$82.2 billion in total assets and US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.

On April 27, General Motors presented the U.S. Department of
Treasury with an updated plan as required by the loan agreement
signed by GM and the U.S. Treasury on December 31, 2008.  The plan
addresses the key restructuring targets required by the loan
agreement, including a number of the critical elements of the plan
that was submitted to the U.S. government on December 2, 2008.
Among these are: U.S. market competitiveness; fuel economy and
emissions; competitive labor cost; and restructuring of the
company's unsecured debt.  It also includes a timeline for
repayment of the Federal loans, and an analysis of the Company's
positive net present value.  The plan details the future reduction
of GM's vehicle brands and nameplates in the U.S., further
consolidation in its workforce and dealer network, accelerated
capacity actions and enhanced manufacturing competitiveness, while
maintaining GM's strong commitment to high-quality, fuel-efficient
vehicles and advanced propulsion technologies.  A full-text copy
of GM's viability plan presented in February 2009 is available at
http://researcharchives.com/t/s?39a4

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D. N.Y. Lead Case
No. 09-50026).  The Honorable Robert E. Gerber presides over the
Chapter 11 cases.  Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts.  Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors'
restructuring officer.  GM is also represented by Jenner & Block
LLP and Honigman Miller Schwartz and Cohn LLP as counsels.
Cravath, Swaine, & Moore LLP is providing legal advice to the GM
Board of Directors.  GM's financial advisors are Morgan Stanley,
Evercore Partners and the Blackstone Group LLP.


HYPO REAL: Fitch Affirms Individual Rating at 'F'
-------------------------------------------------
Fitch Ratings has upgraded Hypo Real Estate Holding AG's Short-
term Issuer Default Rating to 'F1+' from 'F1'.  This follows the
forthcoming change in HRE Holding's ownership structure whereby
the German Financial Market Stabilization Fund (SoFFin), acting on
behalf of the Federal Republic of Germany (FRG, rated 'AAA'/'F1+'/
Stable), will become the group's majority shareholder.

At the same time, Fitch has affirmed HRE Holding's Long-term IDR
at 'A-', its Support Rating at '1', Support Rating Floor at 'A-'
and Individual Rating at 'F'.  The agency has also upgraded the
Short-term IDRs of HRE Holding's subsidiaries to 'F1+' while
affirming their other ratings.

Fitch has simultaneously affirmed HRE Group's rated hybrid Tier 1
securities, which were issued by Hypo Real Estate Bank
International AG (which has been merged into HRE Bank AG) and
Depfa Bank plc, at 'CC'.  The Recovery Rating of these notes is
'RR5'.  Fitch does not rate any upper tier 2 issuances of the
group.

A full rating breakdown, including the actions highlighted above,
is provided at the end of this comment.

The upgrade of the Short-term IDR to 'F1+' reflects Fitch's view
that the bank's state ownership will remain in place for at least
the short- to medium-term, which -- combined with continued
liquidity support and FRG's creditworthiness -- will ensure an
exceptionally strong capacity for timely payment of short-term
financial commitments.

As anticipated, HRE Holding's shareholder meeting approved a
capital increase amounting to EUR2.96 billion on June 2, 2009,
excluding the subscription rights of other shareholders in favour
of the SoFFin.  Following the capital increase, SoFFin will hold
90% of HRE Holding's capital and voting rights.  Fitch understands
that SoFFin intends to squeeze out the minority shareholders of
HRE Holding to gain full control of the group, and that it will
proceed with its restructuring which was initiated in late-2008.
To stabilize the group, further capital injections, in addition to
the initial EUR2.96 billion capital increase, and continued
liquidity support will be needed.  As of end-March 2009, external
funding guarantees for HRE Group totalled EUR100 billion.

These developments are in line with Fitch's view that there is an
extremely high probability of continued support from the German
State for the HRE Group to ensure its status as a going concern,
which is reflected in the Support Rating of '1'.  HRE Holding's
Long-term IDR is at its Support Rating Floor of 'A-'.  Without the
forthcoming capital injection, HRE Group would be in breach of
regulatory capital ratios with a pro-forma Tier 1 ratio of 3.5% at
end-March 2009, following losses in FY08 and Q109.

HRE Holding's and DEPFA Bank plc's Individual ratings will be
reviewed once there is greater certainty regarding the group's
organizational and funding structure, capitalization and medium-
term business plan.  The plan is subject to a review by the
European Commission due to the support measures received.

As previously stated, Fitch expects that the group's
organizational structure will be further streamlined and that its
operating subsidiaries are likely to be further integrated to
achieve synergies.  While DEPFA Deutsche Pfandbriefbank AG will be
merged into HRE Bank, which is envisaged to conduct the group's
future core business and hence new business activities, Fitch
understands that DEPFA Bank plc and its subsidiary, DEPFA ACS
Bank, are likely to hold the group's non-core activities including
the infrastructure finance, capital markets and trading
businesses, which will be reduced and run-off over time.  Fitch
believes that an orderly winding down of the group's non core
business is only possible under state ownership.

The rating actions have no impact on DEPFA ACS Bank's and DEPFA
Pfandbriefbank's public sector covered bonds which are rated 'AAA'
and 'AAA'/Rating Watch Negative respectively, nor on the mortgage
and public sector covered bonds of HRE Bank, rated 'AA+'/ RWN and
'AAA'/RWN, respectively.

The rating actions with respect to HRE Holding and its rated
subsidiaries are:

Hypo Real Estate Holding AG

  -- Long-term IDR affirmed at 'A-'; Outlook Stable
  -- Short-term IDR upgraded to 'F1+' from 'F1'
  -- Individual Rating affirmed at 'F'
  -- Support Rating affirmed at '1'
  -- Support Rating Floor affirmed at 'A-'

Hypo Real Estate Bank AG

  -- Long-term IDR affirmed at 'A-'; Outlook Stable

  -- Short-term IDR upgraded to 'F1+' from 'F1'

  -- Support Rating affirmed at '1'

  -- Support Rating Floor affirmed at 'A-'

  -- Senior unsecured debt affirmed at 'A-'

  -- Subordinated debt affirmed at 'BBB+'

  -- Hybrid capital instruments affirmed at 'CC'; Recovery Rating
     'RR5'

DEPFA Deutsche Pfandbriefbank AG

  -- Long-term IDR affirmed at 'A-'; Outlook Stable
  -- Short-term IDR upgraded to 'F1+' from 'F1'
  -- Support Rating affirmed at '1'
  -- Support Rating Floor affirmed at 'A-'
  -- Senior unsecured debt affirmed at 'A-'
  -- Subordinated debt affirmed at 'BBB+'

DEPFA Bank plc

  -- Long-term IDR affirmed at 'A-'; Outlook Stable

  -- Short-term IDR upgraded to 'F1+' from 'F1'

  -- Individual Rating affirmed at 'F'

  -- Support Rating affirmed at '1'

  -- Support Rating Floor affirmed at 'A-'

  -- Senior unsecured debt affirmed at 'A-'

  -- Subordinated debt affirmed at 'BBB+'

  -- Hybrid capital instruments affirmed at 'CC'; Recovery Rating
     'RR5'.

DEPFA ACS Bank

  -- Long-term IDR affirmed at 'A-'; Outlook Stable
  -- Short-term IDR upgraded to 'F1+' from 'F1'
  -- Support Rating affirmed at '1'
  -- Senior unsecured debt affirmed at 'A-'
  -- Subordinated debt affirmed at 'BBB+'

Hypo Public Finance Bank puc

  -- Long-term IDR affirmed at 'A-'; Outlook Stable
  -- Short-term IDR upgraded to 'F1+' from 'F1'
  -- Support Rating affirmed at '1'


TREVIRA: Files for Insolvency in Augburg Court
----------------------------------------------
Trevira, a unit of India's Reliance Industries Limited, filed an
application with the court in Augsburg Court in State of Bavaria,
Germany for the commencement of insolvency proceedings with a
restructuring plan.

The move follows major efforts by the company to overcome the
impact of industrial slowdown in Europe particularly of the
automotive and textile sectors to whom it is an important
supplier.

European textile manufacturers are currently facing a considerable
drop in demand for their products, while the cost of production
and employment is increasing and competition from Asian
and Eastern European industries is stronger than ever.
Trevira had recently appointed a Chief Restructuring Officer as
its Managing Director who has many years of experience with a
legal firm specializing in restructuring.

Trevira is a leading European manufacturer of high-value branded
polyster fibres and filament yarns for the automotive industries,
home textiles as well as for technical applications.  The company
has production units in Germany, Denmark, Poland and Belgium.
After the acquisition by Reliance Netherlands B.V , Trevira
improved its' operations and gained in reputation before being
severely impacted by the recent global financial crisis resulting
in considerable demand contraction in its' principal market
segments.


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


ALLIED IRISH: Moody's Cuts Non-Cumulative Hybrids Rating to 'B3'
----------------------------------------------------------------
Moody's Investors Service has taken this rating action on Irish
Banks:

(1) It has downgraded the ratings of Anglo Irish Bank to A3/Prime-
    1/E from A2/Prime-1/E+

(2) It has placed the long-term bank deposit and senior debt
    ratings of Allied Irish Banks plc (AIB, rated Aa3), Bank of
    Ireland (BoI, Aa3), Irish Life & Permanent (IL&P, A1) and ICS
    Building Society (ICS, A1) on review for possible downgrade.

(3) It has downgraded or placed on review for downgrade various
    junior debt securities of Allied Irish Bank, Anglo Irish Bank,
    Bank of Ireland, EBS Building Society and IL&P.

The downgrade of Anglo Irish Bank's ratings reflect Moody's
concerns on the serious challenges faced by the bank as indicated
by a significant capital erosion and a liquidity position highly
reliant on central bank support.  Furthermore, Moody's believes
that significant restructuring will be necessary for the bank to
develop a viable business model again.

"The review of the debt and deposit ratings of AIB, BoI, ICS and
IL&P will look at the extent to which Ireland's ability to provide
support to its banking system may be impacted by the weakening of
the government's own debt capacity (which is under review for
possible downgrade) as a result of the ongoing global economic and
credit crisis," said Ross Abercromby, a Moody's Vice President /
Senior Analyst and lead analyst at Moody's for the Irish banks.
Moody's notes that the review is not expected to lead to more than
a one, possibly two, notch change in the debt and deposit ratings
of the institutions under review.  The rating agency expects to
conclude this review on the bank's ratings following the
conclusion of the review of the Irish government bond rating.

The downgrade of both the non-cumulative preferred shares and the
cumulative junior subordinated debt at these banks incorporates
Moody's view that the risk for potential losses has heightened,
stemming from coupon deferrals due to the potential for protracted
losses at these banks, but also due to an increased risk of EU
approval for the state aid being contingent on burden sharing
among these junior securities.

                  Downgrade of Anglo Irish Bank

The long-term bank deposit and senior debt rating of Anglo Irish
Bank (Anglo) has been downgraded to A3 (with a negative outlook)
from A2 (negative), the dated subordinated debt is downgraded to
Baa1 (negative) and the BFSR is downgraded to E (mapping to a
Baseline Credit Assessment of Caa1) from E+ (BCA: B2).  These
rating actions follow the release of the bank's results for the
half-year to end-March 2009.  In this period the bank recorded a
loss of EUR4.1 billion as a result of a greatly increased
provisioning charge, year on year.  The loss has the effect of all
but wiping out the bank's equity, and at end-March the reported
tier 1 ratio was 3.9% and the total capital ratio 8.2%.  Moody's
notes that these ratios include substantial regulatory
forbearance.

Moody's has also taken into consideration that the Irish
Government has announced that it will, subject to EU approval,
provide up to EUR4 billion of capital to the bank.  However the
rating agency would expect that the capitalization of the bank is
likely to remain very weak, without further ongoing support from
the Irish government, as losses are likely to continue to rise
given the challenging economic conditions in Ireland and the
bank's very high and concentrated exposure to the commercial
property market.  Also reflected in the action is that the bank
will participate in the National Asset Management Agency, or NAMA
(the government's vehicle to acquire development and investment-
related real estate assets from banks) and is expected to transfer
a substantial amount of assets.  Depending on the value of the
assets which will be transferred, this could also lead to a
further capital requirement.

The BFSR of E reflects Moody's view that the bank will require
ongoing support from the Irish government to absorb any remaining
risks in the balance sheet; also continuing government support is
likely to be required to give the bank sufficient flexibility to
restructure and establish a viable business model again.

Incorporating this weak intrinsic credit profile as indicated by
the BFSR of E, the downgrade of the debt and deposit ratings to A3
continues to reflect the 100% state ownership and very high
probability of systemic support.  The difference to the
government's own debt rating stems from Moody's expectation that
the bank will not be in permanent public ownership and the
resulting greater uncertainty for senior unsecured bondholders as
compared to investors in government debt.

The Prime-1 short-term rating of Anglo has been affirmed.
Commenting on this Moody's said that, in most cases, an A3 long-
term rating results in a Prime-2 short-term rating.  "However
Moody's believe the Prime-1 rating is appropriate because under
conditions of strong systemic ownership and support, including a
liquidity facility with the Central Bank of Ireland, short-term
ratings are the most predictable and assurance of payment of
short-term obligations is the highest," explained Mr. Abercromby.

The negative outlook on the A3 long-term bank deposit and senior
debt ratings reflects the uncertainties in Moody's view around the
yet to be implemented new business plan and its viability, which
will still need to be demonstrated.

Moody's has also downgraded Anglo's Tier 1 securities reflecting
the lower BFSR and Moody's expectation that the bank will be
challenged to return to profitability in the medium term which
increases the possibility of coupons being deferred.  Importantly
as discussed previously Moody's notes that as well as EU approval
for NAMA, Anglo also requires EU approval for the business plan it
is currently developing.  As a result of these factors as well as
Moody's view that the bank may be placed into a run-off situation
the Tier 1 securities have been downgraded as below:

Anglo Irish Bank:

  -- Cumulative Tier 1 hybrids downgraded to Caa1 (neg) from B3
     (neg)

  -- Non-cumulative preferred shares and hybrids downgraded to
     Caa3 (neg) from Caa1 (neg)

Long Term Bank Deposit and Senior Debt Ratings Placed on Review
for Downgrade in Line with the Review on the Irish Government Bond
Rating

At present the deposit and debt ratings of Allied Irish Bank, Bank
of Ireland, its subsidiary ICS, and IL&P incorporate substantial
systemic support leading to the senior ratings benefiting from
between seven and eight notches of systemic support.

"As such, Moody's will be reassessing the level of systemic
support for the banks listed above to determine whether the
systemic support they receive will be affected by the review for
possible downgrade on the Irish government's Aaa bond rating" said
Mr. Abercromby.

During the global crisis the Irish government has introduced a
number of measures to support the country's banking system.  These
measures include the raising of the size of deposits guaranteed by
the deposit guarantee fund to EUR100,000 from EUR20,000, the
establishment of a two year blanket guarantee for deposits, senior
debt, covered bonds and dated subordinated debt of seven
institutions (Allied Irish Banks, Bank of Ireland, Anglo-Irish
Bank, Irish Life & Permanent, EBS Building Society and Irish
Nationwide Building Society, as well as the unrated Postbank, a
joint venture between An Post and Fortis) and the injection of
EUR3.5 billion in non-cumulative preference shares into the two
largest banks, Bank of Ireland and Allied Irish Banks.  The
government has also announced that it will restructure the
guarantee to enable the banks to issue debt with a term of up to 5
years.

These measures have been implemented as a result of the severe
stress that the Irish banking system is now exposed to, as the
value of commercial and residential property continues to decline,
and the economic conditions in the country remain very challenging
with GDP forecasted to fall substantially in 2009 and unemployment
expected to continue to rise.

Moody's notes that the review is not expected to lead to more than
a one, possibly two, notch change in the debt and deposit ratings
of the institutions under review.  The rating agency expects to
conclude this review on the bank's ratings following the
conclusion of the review of the Irish government bond rating.

                  Irish Bank's Junior Securities

The junior securities of these banks have been downgraded or
placed on review for possible downgrade:

Allied Irish Banks and Bank of Ireland:

  -- Dated subordinated debt placed on review for possible
     downgrade

  -- Cumulative junior subordinated debt downgraded to Baa2 (on
     review for possible downgrade) from A2 (neg)

  -- Non-cumulative preference shares and hybrids downgraded to B3
     (neg) from B1 (developing)

  -- The cumulative Tier 1 hybrids have been affirmed at B1, the
     outlook is changed to negative from developing

EBS Building Society:

  -- Non-cumulative preference shares and hybrids downgraded to B3
     (neg) from B1 (developing)

Irish Life & Permanent:

  -- Dated subordinated debt placed on review for possible
     downgrade

  -- Cumulative junior subordinated debt downgraded to Baa3 (on
     review for possible downgrade) from A3 (neg)

The dated subordinated debt of AIB, BoI and IL&P has been placed
on review for possible downgrade, in line with the review on the
senior debt ratings.  Moody's continues to notch dated
subordinated debt of the Irish banks one notch below the senior
debt rating reflecting the current Irish government guarantee on
dated subordinated debt (for the six rated institutions covered
under the guarantee) and Moody's view that the Irish authorities
do not have the tools available to impose losses on dated
subordinated debt outside of a liquidation scenario.

Moody's has downgraded the junior subordinated debt instruments at
AIB and BoI to Baa2 (on review for possible downgrade) and at IL&P
to Baa3 (on review for possible downgrade).  This reflects their
junior priority of claim to dated subordinated debt and the
optional deferral feature.  The review for possible downgrade is
in line with the review on the senior debt ratings.

The downgrades of the tier 1 instruments reflects Moody's concern
that (i) the EU authorities' approval of NAMA could be contingent
upon the suspension of coupons on these instruments; and (ii)
Moody's expectation of the banks remaining loss-making in the
near-to-medium term increases the possibility of coupons being
missed.

The B3 rating of the non-cumulative preference shares of AIB, BoI
and EBS is based on an expected-loss approach and reflects the
rating agency's assumption of a high probability of the omission
of coupons and high loss severity over a two-year period.  The
rating agency's assumption is that EU requirements could lead to
the banks exercising their right for optional deferral on these
instruments.  The outlook for the securities is negative
reflecting that given the difficult economic conditions in Ireland
and also the potential that the establishment of NAMA may lead to
a further capital requirement and therefore a possible omission of
coupons for a period of longer than two years cannot be ruled out.

The cumulative preference shares / hybrids (with cumulative
deferral and non-cash settlement through ACSM) of AIB and BoI
remain rated B1.  These securities have largely the same features
as junior subordinated debt on a going concern basis, but have a
preferred claim in liquidation.  Under a going concern assumption,
the expected loss for investors in these cumulative instruments
should therefore be clearly lower than for the non-cumulative
preference shares.  However, given their categorization as Tier 1
instruments by the regulators Moody's are concerned that the risk
of coupon deferral is higher than for junior subordinated debt.

        Previous Rating Action and Principal Methodologies

The last rating action on AIB was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on Anglo was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on BoI was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on EBS was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on ICS was on April 21, 2009, when the BFSR
was downgraded to D with a developing outlook.  The long-term bank
deposit rating was affirmed at A1 with a negative outlook at the
same time.

The last rating action on IL&P was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The detailed ratings and actions are listed below:

Allied Irish Banks plc:

  -- Long-term bank deposit and senior debt ratings of Aa3 and the
     A1 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa2
     (on review for possible downgrade) from A2 (negative
     outlook).

  -- Cumulative Tier 1 hybrids unchanged at B1 (outlook changed to
     negative from developing)

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

Anglo Irish Bank Corporation Ltd:

  -- Long-term bank deposit and senior debt ratings downgrade to
     A3 (negative outlook) from A2 (negative outlook) and the
     dated subordinated debt is downgraded to Baa1 (negative
     outlook) from A3 (negative outlook).

  -- Short-term bank deposit and debt rating of Prime-1 is
     affirmed.

  -- Undated junior subordinated debt rating unchanged at B3
     (negative outlook).

  -- Cumulative Tier 1 hybrids downgraded to Caa1 (negative
     outlook) from B3 (negative outlook).

  -- Non-cumulative preferred shares and hybrids downgraded to
     Caa3 (negative outlook) from Caa1 (negative outlook)

  -- Bank financial strength rating downgraded to E (stable
     outlook) from E+ (developing outlook).

Bank of Ireland:

  -- Long-term bank deposit and senior debt ratings of Aa3 and the
     A1 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa2
     (on review for possible downgrade) from A2 (negative
     outlook).

  -- Cumulative Tier 1 hybrids unchanged at B1 (outlook changed to
     negative from developing)

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

EBS Building Society:

  -- Long-term bank deposit and senior debt ratings of A2 are
     unaffected

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

ICS Building Society:

  -- Long-term bank deposit rating of A1 placed on review for
     possible downgrade.

  -- Short-term bank deposit rating of Prime-1 is unaffected.

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

Irish Life & Permanent:

  -- Long-term bank deposit and senior debt ratings of A1 and the
     A2 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa3
     (on review for possible downgrade) from A3 (negative
     outlook).

  -- Bank financial strength rating of D is unaffected and carries
     a negative outlook.

All of the banks are headquartered in Dublin, Ireland.


ANGLO IRISH: Moody's Cuts Bank Financial Strength Rating to 'E'
---------------------------------------------------------------
Moody's Investors Service has taken this rating action on Irish
Banks:

(1) It has downgraded the ratings of Anglo Irish Bank to A3/Prime-
    1/E from A2/Prime-1/E+

(2) It has placed the long-term bank deposit and senior debt
    ratings of Allied Irish Banks plc (AIB, rated Aa3), Bank of
    Ireland (BoI, Aa3), Irish Life & Permanent (IL&P, A1) and ICS
    Building Society (ICS, A1) on review for possible downgrade.

(3) It has downgraded or placed on review for downgrade various
    junior debt securities of Allied Irish Bank, Anglo Irish Bank,
    Bank of Ireland, EBS Building Society and IL&P.

The downgrade of Anglo Irish Bank's ratings reflect Moody's
concerns on the serious challenges faced by the bank as indicated
by a significant capital erosion and a liquidity position highly
reliant on central bank support.  Furthermore, Moody's believes
that significant restructuring will be necessary for the bank to
develop a viable business model again.

"The review of the debt and deposit ratings of AIB, BoI, ICS and
IL&P will look at the extent to which Ireland's ability to provide
support to its banking system may be impacted by the weakening of
the government's own debt capacity (which is under review for
possible downgrade) as a result of the ongoing global economic and
credit crisis," said Ross Abercromby, a Moody's Vice President /
Senior Analyst and lead analyst at Moody's for the Irish banks.
Moody's notes that the review is not expected to lead to more than
a one, possibly two, notch change in the debt and deposit ratings
of the institutions under review.  The rating agency expects to
conclude this review on the bank's ratings following the
conclusion of the review of the Irish government bond rating.

The downgrade of both the non-cumulative preferred shares and the
cumulative junior subordinated debt at these banks incorporates
Moody's view that the risk for potential losses has heightened,
stemming from coupon deferrals due to the potential for protracted
losses at these banks, but also due to an increased risk of EU
approval for the state aid being contingent on burden sharing
among these junior securities.

                  Downgrade of Anglo Irish Bank

The long-term bank deposit and senior debt rating of Anglo Irish
Bank (Anglo) has been downgraded to A3 (with a negative outlook)
from A2 (negative), the dated subordinated debt is downgraded to
Baa1 (negative) and the BFSR is downgraded to E (mapping to a
Baseline Credit Assessment of Caa1) from E+ (BCA: B2).  These
rating actions follow the release of the bank's results for the
half-year to end-March 2009.  In this period the bank recorded a
loss of EUR4.1 billion as a result of a greatly increased
provisioning charge, year on year.  The loss has the effect of all
but wiping out the bank's equity, and at end-March the reported
tier 1 ratio was 3.9% and the total capital ratio 8.2%.  Moody's
notes that these ratios include substantial regulatory
forbearance.

Moody's has also taken into consideration that the Irish
Government has announced that it will, subject to EU approval,
provide up to EUR4 billion of capital to the bank.  However the
rating agency would expect that the capitalization of the bank is
likely to remain very weak, without further ongoing support from
the Irish government, as losses are likely to continue to rise
given the challenging economic conditions in Ireland and the
bank's very high and concentrated exposure to the commercial
property market.  Also reflected in the action is that the bank
will participate in the National Asset Management Agency, or NAMA
(the government's vehicle to acquire development and investment-
related real estate assets from banks) and is expected to transfer
a substantial amount of assets.  Depending on the value of the
assets which will be transferred, this could also lead to a
further capital requirement.

The BFSR of E reflects Moody's view that the bank will require
ongoing support from the Irish government to absorb any remaining
risks in the balance sheet; also continuing government support is
likely to be required to give the bank sufficient flexibility to
restructure and establish a viable business model again.

Incorporating this weak intrinsic credit profile as indicated by
the BFSR of E, the downgrade of the debt and deposit ratings to A3
continues to reflect the 100% state ownership and very high
probability of systemic support.  The difference to the
government's own debt rating stems from Moody's expectation that
the bank will not be in permanent public ownership and the
resulting greater uncertainty for senior unsecured bondholders as
compared to investors in government debt.

The Prime-1 short-term rating of Anglo has been affirmed.
Commenting on this Moody's said that, in most cases, an A3 long-
term rating results in a Prime-2 short-term rating.  "However
Moody's believe the Prime-1 rating is appropriate because under
conditions of strong systemic ownership and support, including a
liquidity facility with the Central Bank of Ireland, short-term
ratings are the most predictable and assurance of payment of
short-term obligations is the highest," explained Mr. Abercromby.

The negative outlook on the A3 long-term bank deposit and senior
debt ratings reflects the uncertainties in Moody's view around the
yet to be implemented new business plan and its viability, which
will still need to be demonstrated.

Moody's has also downgraded Anglo's Tier 1 securities reflecting
the lower BFSR and Moody's expectation that the bank will be
challenged to return to profitability in the medium term which
increases the possibility of coupons being deferred.  Importantly
as discussed previously Moody's notes that as well as EU approval
for NAMA, Anglo also requires EU approval for the business plan it
is currently developing.  As a result of these factors as well as
Moody's view that the bank may be placed into a run-off situation
the Tier 1 securities have been downgraded as below:

Anglo Irish Bank:

  -- Cumulative Tier 1 hybrids downgraded to Caa1 (neg) from B3
     (neg)

  -- Non-cumulative preferred shares and hybrids downgraded to
     Caa3 (neg) from Caa1 (neg)

Long Term Bank Deposit and Senior Debt Ratings Placed on Review
for Downgrade in Line with the Review on the Irish Government Bond
Rating

At present the deposit and debt ratings of Allied Irish Bank, Bank
of Ireland, its subsidiary ICS, and IL&P incorporate substantial
systemic support leading to the senior ratings benefiting from
between seven and eight notches of systemic support.

"As such, Moody's will be reassessing the level of systemic
support for the banks listed above to determine whether the
systemic support they receive will be affected by the review for
possible downgrade on the Irish government's Aaa bond rating" said
Mr. Abercromby.

During the global crisis the Irish government has introduced a
number of measures to support the country's banking system.  These
measures include the raising of the size of deposits guaranteed by
the deposit guarantee fund to EUR100,000 from EUR20,000, the
establishment of a two year blanket guarantee for deposits, senior
debt, covered bonds and dated subordinated debt of seven
institutions (Allied Irish Banks, Bank of Ireland, Anglo-Irish
Bank, Irish Life & Permanent, EBS Building Society and Irish
Nationwide Building Society, as well as the unrated Postbank, a
joint venture between An Post and Fortis) and the injection of
EUR3.5 billion in non-cumulative preference shares into the two
largest banks, Bank of Ireland and Allied Irish Banks.  The
government has also announced that it will restructure the
guarantee to enable the banks to issue debt with a term of up to 5
years.

These measures have been implemented as a result of the severe
stress that the Irish banking system is now exposed to, as the
value of commercial and residential property continues to decline,
and the economic conditions in the country remain very challenging
with GDP forecasted to fall substantially in 2009 and unemployment
expected to continue to rise.

Moody's notes that the review is not expected to lead to more than
a one, possibly two, notch change in the debt and deposit ratings
of the institutions under review.  The rating agency expects to
conclude this review on the bank's ratings following the
conclusion of the review of the Irish government bond rating.

                  Irish Bank's Junior Securities

The junior securities of these banks have been downgraded or
placed on review for possible downgrade:

Allied Irish Banks and Bank of Ireland:

  -- Dated subordinated debt placed on review for possible
     downgrade

  -- Cumulative junior subordinated debt downgraded to Baa2 (on
     review for possible downgrade) from A2 (neg)

  -- Non-cumulative preference shares and hybrids downgraded to B3
     (neg) from B1 (developing)

  -- The cumulative Tier 1 hybrids have been affirmed at B1, the
     outlook is changed to negative from developing

EBS Building Society:

  -- Non-cumulative preference shares and hybrids downgraded to B3
     (neg) from B1 (developing)

Irish Life & Permanent:

  -- Dated subordinated debt placed on review for possible
     downgrade

  -- Cumulative junior subordinated debt downgraded to Baa3 (on
     review for possible downgrade) from A3 (neg)

The dated subordinated debt of AIB, BoI and IL&P has been placed
on review for possible downgrade, in line with the review on the
senior debt ratings.  Moody's continues to notch dated
subordinated debt of the Irish banks one notch below the senior
debt rating reflecting the current Irish government guarantee on
dated subordinated debt (for the six rated institutions covered
under the guarantee) and Moody's view that the Irish authorities
do not have the tools available to impose losses on dated
subordinated debt outside of a liquidation scenario.

Moody's has downgraded the junior subordinated debt instruments at
AIB and BoI to Baa2 (on review for possible downgrade) and at IL&P
to Baa3 (on review for possible downgrade).  This reflects their
junior priority of claim to dated subordinated debt and the
optional deferral feature.  The review for possible downgrade is
in line with the review on the senior debt ratings.

The downgrades of the tier 1 instruments reflects Moody's concern
that (i) the EU authorities' approval of NAMA could be contingent
upon the suspension of coupons on these instruments; and (ii)
Moody's expectation of the banks remaining loss-making in the
near-to-medium term increases the possibility of coupons being
missed.

The B3 rating of the non-cumulative preference shares of AIB, BoI
and EBS is based on an expected-loss approach and reflects the
rating agency's assumption of a high probability of the omission
of coupons and high loss severity over a two-year period.  The
rating agency's assumption is that EU requirements could lead to
the banks exercising their right for optional deferral on these
instruments.  The outlook for the securities is negative
reflecting that given the difficult economic conditions in Ireland
and also the potential that the establishment of NAMA may lead to
a further capital requirement and therefore a possible omission of
coupons for a period of longer than two years cannot be ruled out.

The cumulative preference shares / hybrids (with cumulative
deferral and non-cash settlement through ACSM) of AIB and BoI
remain rated B1.  These securities have largely the same features
as junior subordinated debt on a going concern basis, but have a
preferred claim in liquidation.  Under a going concern assumption,
the expected loss for investors in these cumulative instruments
should therefore be clearly lower than for the non-cumulative
preference shares.  However, given their categorization as Tier 1
instruments by the regulators Moody's are concerned that the risk
of coupon deferral is higher than for junior subordinated debt.

        Previous Rating Action and Principal Methodologies

The last rating action on AIB was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on Anglo was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on BoI was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on EBS was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on ICS was on April 21, 2009, when the BFSR
was downgraded to D with a developing outlook.  The long-term bank
deposit rating was affirmed at A1 with a negative outlook at the
same time.

The last rating action on IL&P was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The detailed ratings and actions are listed below:

Allied Irish Banks plc:

  -- Long-term bank deposit and senior debt ratings of Aa3 and the
     A1 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa2
     (on review for possible downgrade) from A2 (negative
     outlook).

  -- Cumulative Tier 1 hybrids unchanged at B1 (outlook changed to
     negative from developing)

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

Anglo Irish Bank Corporation Ltd:

  -- Long-term bank deposit and senior debt ratings downgrade to
     A3 (negative outlook) from A2 (negative outlook) and the
     dated subordinated debt is downgraded to Baa1 (negative
     outlook) from A3 (negative outlook).

  -- Short-term bank deposit and debt rating of Prime-1 is
     affirmed.

  -- Undated junior subordinated debt rating unchanged at B3
     (negative outlook).

  -- Cumulative Tier 1 hybrids downgraded to Caa1 (negative
     outlook) from B3 (negative outlook).

  -- Non-cumulative preferred shares and hybrids downgraded to
     Caa3 (negative outlook) from Caa1 (negative outlook)

  -- Bank financial strength rating downgraded to E (stable
     outlook) from E+ (developing outlook).

Bank of Ireland:

  -- Long-term bank deposit and senior debt ratings of Aa3 and the
     A1 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa2
     (on review for possible downgrade) from A2 (negative
     outlook).

  -- Cumulative Tier 1 hybrids unchanged at B1 (outlook changed to
     negative from developing)

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

EBS Building Society:

  -- Long-term bank deposit and senior debt ratings of A2 are
     unaffected

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

ICS Building Society:

  -- Long-term bank deposit rating of A1 placed on review for
     possible downgrade.

  -- Short-term bank deposit rating of Prime-1 is unaffected.

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

Irish Life & Permanent:

  -- Long-term bank deposit and senior debt ratings of A1 and the
     A2 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa3
     (on review for possible downgrade) from A3 (negative
     outlook).

  -- Bank financial strength rating of D is unaffected and carries
     a negative outlook.

All of the banks are headquartered in Dublin, Ireland.


BANK OF IRELAND: Moody's Affirms Cumulative Hybrids Rating at 'B1'
------------------------------------------------------------------
Moody's Investors Service has taken this rating action on Irish
Banks:

(1) It has downgraded the ratings of Anglo Irish Bank to A3/Prime-
    1/E from A2/Prime-1/E+

(2) It has placed the long-term bank deposit and senior debt
    ratings of Allied Irish Banks plc (AIB, rated Aa3), Bank of
    Ireland (BoI, Aa3), Irish Life & Permanent (IL&P, A1) and ICS
    Building Society (ICS, A1) on review for possible downgrade.

(3) It has downgraded or placed on review for downgrade various
    junior debt securities of Allied Irish Bank, Anglo Irish Bank,
    Bank of Ireland, EBS Building Society and IL&P.

The downgrade of Anglo Irish Bank's ratings reflect Moody's
concerns on the serious challenges faced by the bank as indicated
by a significant capital erosion and a liquidity position highly
reliant on central bank support.  Furthermore, Moody's believes
that significant restructuring will be necessary for the bank to
develop a viable business model again.

"The review of the debt and deposit ratings of AIB, BoI, ICS and
IL&P will look at the extent to which Ireland's ability to provide
support to its banking system may be impacted by the weakening of
the government's own debt capacity (which is under review for
possible downgrade) as a result of the ongoing global economic and
credit crisis," said Ross Abercromby, a Moody's Vice President /
Senior Analyst and lead analyst at Moody's for the Irish banks.
Moody's notes that the review is not expected to lead to more than
a one, possibly two, notch change in the debt and deposit ratings
of the institutions under review.  The rating agency expects to
conclude this review on the bank's ratings following the
conclusion of the review of the Irish government bond rating.

The downgrade of both the non-cumulative preferred shares and the
cumulative junior subordinated debt at these banks incorporates
Moody's view that the risk for potential losses has heightened,
stemming from coupon deferrals due to the potential for protracted
losses at these banks, but also due to an increased risk of EU
approval for the state aid being contingent on burden sharing
among these junior securities.

                  Downgrade of Anglo Irish Bank

The long-term bank deposit and senior debt rating of Anglo Irish
Bank (Anglo) has been downgraded to A3 (with a negative outlook)
from A2 (negative), the dated subordinated debt is downgraded to
Baa1 (negative) and the BFSR is downgraded to E (mapping to a
Baseline Credit Assessment of Caa1) from E+ (BCA: B2).  These
rating actions follow the release of the bank's results for the
half-year to end-March 2009.  In this period the bank recorded a
loss of EUR4.1 billion as a result of a greatly increased
provisioning charge, year on year.  The loss has the effect of all
but wiping out the bank's equity, and at end-March the reported
tier 1 ratio was 3.9% and the total capital ratio 8.2%.  Moody's
notes that these ratios include substantial regulatory
forbearance.

Moody's has also taken into consideration that the Irish
Government has announced that it will, subject to EU approval,
provide up to EUR4 billion of capital to the bank.  However the
rating agency would expect that the capitalization of the bank is
likely to remain very weak, without further ongoing support from
the Irish government, as losses are likely to continue to rise
given the challenging economic conditions in Ireland and the
bank's very high and concentrated exposure to the commercial
property market.  Also reflected in the action is that the bank
will participate in the National Asset Management Agency, or NAMA
(the government's vehicle to acquire development and investment-
related real estate assets from banks) and is expected to transfer
a substantial amount of assets.  Depending on the value of the
assets which will be transferred, this could also lead to a
further capital requirement.

The BFSR of E reflects Moody's view that the bank will require
ongoing support from the Irish government to absorb any remaining
risks in the balance sheet; also continuing government support is
likely to be required to give the bank sufficient flexibility to
restructure and establish a viable business model again.

Incorporating this weak intrinsic credit profile as indicated by
the BFSR of E, the downgrade of the debt and deposit ratings to A3
continues to reflect the 100% state ownership and very high
probability of systemic support.  The difference to the
government's own debt rating stems from Moody's expectation that
the bank will not be in permanent public ownership and the
resulting greater uncertainty for senior unsecured bondholders as
compared to investors in government debt.

The Prime-1 short-term rating of Anglo has been affirmed.
Commenting on this Moody's said that, in most cases, an A3 long-
term rating results in a Prime-2 short-term rating.  "However
Moody's believe the Prime-1 rating is appropriate because under
conditions of strong systemic ownership and support, including a
liquidity facility with the Central Bank of Ireland, short-term
ratings are the most predictable and assurance of payment of
short-term obligations is the highest," explained Mr. Abercromby.

The negative outlook on the A3 long-term bank deposit and senior
debt ratings reflects the uncertainties in Moody's view around the
yet to be implemented new business plan and its viability, which
will still need to be demonstrated.

Moody's has also downgraded Anglo's Tier 1 securities reflecting
the lower BFSR and Moody's expectation that the bank will be
challenged to return to profitability in the medium term which
increases the possibility of coupons being deferred.  Importantly
as discussed previously Moody's notes that as well as EU approval
for NAMA, Anglo also requires EU approval for the business plan it
is currently developing.  As a result of these factors as well as
Moody's view that the bank may be placed into a run-off situation
the Tier 1 securities have been downgraded as below:

Anglo Irish Bank:

  -- Cumulative Tier 1 hybrids downgraded to Caa1 (neg) from B3
     (neg)

  -- Non-cumulative preferred shares and hybrids downgraded to
     Caa3 (neg) from Caa1 (neg)

Long Term Bank Deposit and Senior Debt Ratings Placed on Review
for Downgrade in Line with the Review on the Irish Government Bond
Rating

At present the deposit and debt ratings of Allied Irish Bank, Bank
of Ireland, its subsidiary ICS, and IL&P incorporate substantial
systemic support leading to the senior ratings benefiting from
between seven and eight notches of systemic support.

"As such, Moody's will be reassessing the level of systemic
support for the banks listed above to determine whether the
systemic support they receive will be affected by the review for
possible downgrade on the Irish government's Aaa bond rating" said
Mr. Abercromby.

During the global crisis the Irish government has introduced a
number of measures to support the country's banking system.  These
measures include the raising of the size of deposits guaranteed by
the deposit guarantee fund to EUR100,000 from EUR20,000, the
establishment of a two year blanket guarantee for deposits, senior
debt, covered bonds and dated subordinated debt of seven
institutions (Allied Irish Banks, Bank of Ireland, Anglo-Irish
Bank, Irish Life & Permanent, EBS Building Society and Irish
Nationwide Building Society, as well as the unrated Postbank, a
joint venture between An Post and Fortis) and the injection of
EUR3.5 billion in non-cumulative preference shares into the two
largest banks, Bank of Ireland and Allied Irish Banks.  The
government has also announced that it will restructure the
guarantee to enable the banks to issue debt with a term of up to 5
years.

These measures have been implemented as a result of the severe
stress that the Irish banking system is now exposed to, as the
value of commercial and residential property continues to decline,
and the economic conditions in the country remain very challenging
with GDP forecasted to fall substantially in 2009 and unemployment
expected to continue to rise.

Moody's notes that the review is not expected to lead to more than
a one, possibly two, notch change in the debt and deposit ratings
of the institutions under review.  The rating agency expects to
conclude this review on the bank's ratings following the
conclusion of the review of the Irish government bond rating.

                  Irish Bank's Junior Securities

The junior securities of these banks have been downgraded or
placed on review for possible downgrade:

Allied Irish Banks and Bank of Ireland:

  -- Dated subordinated debt placed on review for possible
     downgrade

  -- Cumulative junior subordinated debt downgraded to Baa2 (on
     review for possible downgrade) from A2 (neg)

  -- Non-cumulative preference shares and hybrids downgraded to B3
     (neg) from B1 (developing)

  -- The cumulative Tier 1 hybrids have been affirmed at B1, the
     outlook is changed to negative from developing

EBS Building Society:

  -- Non-cumulative preference shares and hybrids downgraded to B3
     (neg) from B1 (developing)

Irish Life & Permanent:

  -- Dated subordinated debt placed on review for possible
     downgrade

  -- Cumulative junior subordinated debt downgraded to Baa3 (on
     review for possible downgrade) from A3 (neg)

The dated subordinated debt of AIB, BoI and IL&P has been placed
on review for possible downgrade, in line with the review on the
senior debt ratings.  Moody's continues to notch dated
subordinated debt of the Irish banks one notch below the senior
debt rating reflecting the current Irish government guarantee on
dated subordinated debt (for the six rated institutions covered
under the guarantee) and Moody's view that the Irish authorities
do not have the tools available to impose losses on dated
subordinated debt outside of a liquidation scenario.

Moody's has downgraded the junior subordinated debt instruments at
AIB and BoI to Baa2 (on review for possible downgrade) and at IL&P
to Baa3 (on review for possible downgrade).  This reflects their
junior priority of claim to dated subordinated debt and the
optional deferral feature.  The review for possible downgrade is
in line with the review on the senior debt ratings.

The downgrades of the tier 1 instruments reflects Moody's concern
that (i) the EU authorities' approval of NAMA could be contingent
upon the suspension of coupons on these instruments; and (ii)
Moody's expectation of the banks remaining loss-making in the
near-to-medium term increases the possibility of coupons being
missed.

The B3 rating of the non-cumulative preference shares of AIB, BoI
and EBS is based on an expected-loss approach and reflects the
rating agency's assumption of a high probability of the omission
of coupons and high loss severity over a two-year period.  The
rating agency's assumption is that EU requirements could lead to
the banks exercising their right for optional deferral on these
instruments.  The outlook for the securities is negative
reflecting that given the difficult economic conditions in Ireland
and also the potential that the establishment of NAMA may lead to
a further capital requirement and therefore a possible omission of
coupons for a period of longer than two years cannot be ruled out.

The cumulative preference shares / hybrids (with cumulative
deferral and non-cash settlement through ACSM) of AIB and BoI
remain rated B1.  These securities have largely the same features
as junior subordinated debt on a going concern basis, but have a
preferred claim in liquidation.  Under a going concern assumption,
the expected loss for investors in these cumulative instruments
should therefore be clearly lower than for the non-cumulative
preference shares.  However, given their categorization as Tier 1
instruments by the regulators Moody's are concerned that the risk
of coupon deferral is higher than for junior subordinated debt.

        Previous Rating Action and Principal Methodologies

The last rating action on AIB was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on Anglo was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on BoI was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on EBS was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on ICS was on April 21, 2009, when the BFSR
was downgraded to D with a developing outlook.  The long-term bank
deposit rating was affirmed at A1 with a negative outlook at the
same time.

The last rating action on IL&P was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The detailed ratings and actions are listed below:

Allied Irish Banks plc:

  -- Long-term bank deposit and senior debt ratings of Aa3 and the
     A1 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa2
     (on review for possible downgrade) from A2 (negative
     outlook).

  -- Cumulative Tier 1 hybrids unchanged at B1 (outlook changed to
     negative from developing)

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

Anglo Irish Bank Corporation Ltd:

  -- Long-term bank deposit and senior debt ratings downgrade to
     A3 (negative outlook) from A2 (negative outlook) and the
     dated subordinated debt is downgraded to Baa1 (negative
     outlook) from A3 (negative outlook).

  -- Short-term bank deposit and debt rating of Prime-1 is
     affirmed.

  -- Undated junior subordinated debt rating unchanged at B3
     (negative outlook).

  -- Cumulative Tier 1 hybrids downgraded to Caa1 (negative
     outlook) from B3 (negative outlook).

  -- Non-cumulative preferred shares and hybrids downgraded to
     Caa3 (negative outlook) from Caa1 (negative outlook)

  -- Bank financial strength rating downgraded to E (stable
     outlook) from E+ (developing outlook).

Bank of Ireland:

  -- Long-term bank deposit and senior debt ratings of Aa3 and the
     A1 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa2
     (on review for possible downgrade) from A2 (negative
     outlook).

  -- Cumulative Tier 1 hybrids unchanged at B1 (outlook changed to
     negative from developing)

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

EBS Building Society:

  -- Long-term bank deposit and senior debt ratings of A2 are
     unaffected

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

ICS Building Society:

  -- Long-term bank deposit rating of A1 placed on review for
     possible downgrade.

  -- Short-term bank deposit rating of Prime-1 is unaffected.

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

Irish Life & Permanent:

  -- Long-term bank deposit and senior debt ratings of A1 and the
     A2 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa3
     (on review for possible downgrade) from A3 (negative
     outlook).

  -- Bank financial strength rating of D is unaffected and carries
     a negative outlook.

All of the banks are headquartered in Dublin, Ireland.


EBS BUILDING: Moody's Cuts Non-Cumulative Pref Shares Rating to B3
------------------------------------------------------------------
Moody's Investors Service has taken this rating action on Irish
Banks:

(1) It has downgraded the ratings of Anglo Irish Bank to A3/Prime-
    1/E from A2/Prime-1/E+

(2) It has placed the long-term bank deposit and senior debt
    ratings of Allied Irish Banks plc (AIB, rated Aa3), Bank of
    Ireland (BoI, Aa3), Irish Life & Permanent (IL&P, A1) and ICS
    Building Society (ICS, A1) on review for possible downgrade.

(3) It has downgraded or placed on review for downgrade various
    junior debt securities of Allied Irish Bank, Anglo Irish Bank,
    Bank of Ireland, EBS Building Society and IL&P.

The downgrade of Anglo Irish Bank's ratings reflect Moody's
concerns on the serious challenges faced by the bank as indicated
by a significant capital erosion and a liquidity position highly
reliant on central bank support.  Furthermore, Moody's believes
that significant restructuring will be necessary for the bank to
develop a viable business model again.

"The review of the debt and deposit ratings of AIB, BoI, ICS and
IL&P will look at the extent to which Ireland's ability to provide
support to its banking system may be impacted by the weakening of
the government's own debt capacity (which is under review for
possible downgrade) as a result of the ongoing global economic and
credit crisis," said Ross Abercromby, a Moody's Vice President /
Senior Analyst and lead analyst at Moody's for the Irish banks.
Moody's notes that the review is not expected to lead to more than
a one, possibly two, notch change in the debt and deposit ratings
of the institutions under review.  The rating agency expects to
conclude this review on the bank's ratings following the
conclusion of the review of the Irish government bond rating.

The downgrade of both the non-cumulative preferred shares and the
cumulative junior subordinated debt at these banks incorporates
Moody's view that the risk for potential losses has heightened,
stemming from coupon deferrals due to the potential for protracted
losses at these banks, but also due to an increased risk of EU
approval for the state aid being contingent on burden sharing
among these junior securities.

                  Downgrade of Anglo Irish Bank

The long-term bank deposit and senior debt rating of Anglo Irish
Bank (Anglo) has been downgraded to A3 (with a negative outlook)
from A2 (negative), the dated subordinated debt is downgraded to
Baa1 (negative) and the BFSR is downgraded to E (mapping to a
Baseline Credit Assessment of Caa1) from E+ (BCA: B2).  These
rating actions follow the release of the bank's results for the
half-year to end-March 2009.  In this period the bank recorded a
loss of EUR4.1 billion as a result of a greatly increased
provisioning charge, year on year.  The loss has the effect of all
but wiping out the bank's equity, and at end-March the reported
tier 1 ratio was 3.9% and the total capital ratio 8.2%.  Moody's
notes that these ratios include substantial regulatory
forbearance.

Moody's has also taken into consideration that the Irish
Government has announced that it will, subject to EU approval,
provide up to EUR4 billion of capital to the bank.  However the
rating agency would expect that the capitalization of the bank is
likely to remain very weak, without further ongoing support from
the Irish government, as losses are likely to continue to rise
given the challenging economic conditions in Ireland and the
bank's very high and concentrated exposure to the commercial
property market.  Also reflected in the action is that the bank
will participate in the National Asset Management Agency, or NAMA
(the government's vehicle to acquire development and investment-
related real estate assets from banks) and is expected to transfer
a substantial amount of assets.  Depending on the value of the
assets which will be transferred, this could also lead to a
further capital requirement.

The BFSR of E reflects Moody's view that the bank will require
ongoing support from the Irish government to absorb any remaining
risks in the balance sheet; also continuing government support is
likely to be required to give the bank sufficient flexibility to
restructure and establish a viable business model again.

Incorporating this weak intrinsic credit profile as indicated by
the BFSR of E, the downgrade of the debt and deposit ratings to A3
continues to reflect the 100% state ownership and very high
probability of systemic support.  The difference to the
government's own debt rating stems from Moody's expectation that
the bank will not be in permanent public ownership and the
resulting greater uncertainty for senior unsecured bondholders as
compared to investors in government debt.

The Prime-1 short-term rating of Anglo has been affirmed.
Commenting on this Moody's said that, in most cases, an A3 long-
term rating results in a Prime-2 short-term rating.  "However
Moody's believe the Prime-1 rating is appropriate because under
conditions of strong systemic ownership and support, including a
liquidity facility with the Central Bank of Ireland, short-term
ratings are the most predictable and assurance of payment of
short-term obligations is the highest," explained Mr. Abercromby.

The negative outlook on the A3 long-term bank deposit and senior
debt ratings reflects the uncertainties in Moody's view around the
yet to be implemented new business plan and its viability, which
will still need to be demonstrated.

Moody's has also downgraded Anglo's Tier 1 securities reflecting
the lower BFSR and Moody's expectation that the bank will be
challenged to return to profitability in the medium term which
increases the possibility of coupons being deferred.  Importantly
as discussed previously Moody's notes that as well as EU approval
for NAMA, Anglo also requires EU approval for the business plan it
is currently developing.  As a result of these factors as well as
Moody's view that the bank may be placed into a run-off situation
the Tier 1 securities have been downgraded as below:

Anglo Irish Bank:

  -- Cumulative Tier 1 hybrids downgraded to Caa1 (neg) from B3
     (neg)

  -- Non-cumulative preferred shares and hybrids downgraded to
     Caa3 (neg) from Caa1 (neg)

Long Term Bank Deposit and Senior Debt Ratings Placed on Review
for Downgrade in Line with the Review on the Irish Government Bond
Rating

At present the deposit and debt ratings of Allied Irish Bank, Bank
of Ireland, its subsidiary ICS, and IL&P incorporate substantial
systemic support leading to the senior ratings benefiting from
between seven and eight notches of systemic support.

"As such, Moody's will be reassessing the level of systemic
support for the banks listed above to determine whether the
systemic support they receive will be affected by the review for
possible downgrade on the Irish government's Aaa bond rating" said
Mr. Abercromby.

During the global crisis the Irish government has introduced a
number of measures to support the country's banking system.  These
measures include the raising of the size of deposits guaranteed by
the deposit guarantee fund to EUR100,000 from EUR20,000, the
establishment of a two year blanket guarantee for deposits, senior
debt, covered bonds and dated subordinated debt of seven
institutions (Allied Irish Banks, Bank of Ireland, Anglo-Irish
Bank, Irish Life & Permanent, EBS Building Society and Irish
Nationwide Building Society, as well as the unrated Postbank, a
joint venture between An Post and Fortis) and the injection of
EUR3.5 billion in non-cumulative preference shares into the two
largest banks, Bank of Ireland and Allied Irish Banks.  The
government has also announced that it will restructure the
guarantee to enable the banks to issue debt with a term of up to 5
years.

These measures have been implemented as a result of the severe
stress that the Irish banking system is now exposed to, as the
value of commercial and residential property continues to decline,
and the economic conditions in the country remain very challenging
with GDP forecasted to fall substantially in 2009 and unemployment
expected to continue to rise.

Moody's notes that the review is not expected to lead to more than
a one, possibly two, notch change in the debt and deposit ratings
of the institutions under review.  The rating agency expects to
conclude this review on the bank's ratings following the
conclusion of the review of the Irish government bond rating.

                  Irish Bank's Junior Securities

The junior securities of these banks have been downgraded or
placed on review for possible downgrade:

Allied Irish Banks and Bank of Ireland:

  -- Dated subordinated debt placed on review for possible
     downgrade

  -- Cumulative junior subordinated debt downgraded to Baa2 (on
     review for possible downgrade) from A2 (neg)

  -- Non-cumulative preference shares and hybrids downgraded to B3
     (neg) from B1 (developing)

  -- The cumulative Tier 1 hybrids have been affirmed at B1, the
     outlook is changed to negative from developing

EBS Building Society:

  -- Non-cumulative preference shares and hybrids downgraded to B3
     (neg) from B1 (developing)

Irish Life & Permanent:

  -- Dated subordinated debt placed on review for possible
     downgrade

  -- Cumulative junior subordinated debt downgraded to Baa3 (on
     review for possible downgrade) from A3 (neg)

The dated subordinated debt of AIB, BoI and IL&P has been placed
on review for possible downgrade, in line with the review on the
senior debt ratings.  Moody's continues to notch dated
subordinated debt of the Irish banks one notch below the senior
debt rating reflecting the current Irish government guarantee on
dated subordinated debt (for the six rated institutions covered
under the guarantee) and Moody's view that the Irish authorities
do not have the tools available to impose losses on dated
subordinated debt outside of a liquidation scenario.

Moody's has downgraded the junior subordinated debt instruments at
AIB and BoI to Baa2 (on review for possible downgrade) and at IL&P
to Baa3 (on review for possible downgrade).  This reflects their
junior priority of claim to dated subordinated debt and the
optional deferral feature.  The review for possible downgrade is
in line with the review on the senior debt ratings.

The downgrades of the tier 1 instruments reflects Moody's concern
that (i) the EU authorities' approval of NAMA could be contingent
upon the suspension of coupons on these instruments; and (ii)
Moody's expectation of the banks remaining loss-making in the
near-to-medium term increases the possibility of coupons being
missed.

The B3 rating of the non-cumulative preference shares of AIB, BoI
and EBS is based on an expected-loss approach and reflects the
rating agency's assumption of a high probability of the omission
of coupons and high loss severity over a two-year period.  The
rating agency's assumption is that EU requirements could lead to
the banks exercising their right for optional deferral on these
instruments.  The outlook for the securities is negative
reflecting that given the difficult economic conditions in Ireland
and also the potential that the establishment of NAMA may lead to
a further capital requirement and therefore a possible omission of
coupons for a period of longer than two years cannot be ruled out.

The cumulative preference shares / hybrids (with cumulative
deferral and non-cash settlement through ACSM) of AIB and BoI
remain rated B1.  These securities have largely the same features
as junior subordinated debt on a going concern basis, but have a
preferred claim in liquidation.  Under a going concern assumption,
the expected loss for investors in these cumulative instruments
should therefore be clearly lower than for the non-cumulative
preference shares.  However, given their categorization as Tier 1
instruments by the regulators Moody's are concerned that the risk
of coupon deferral is higher than for junior subordinated debt.

        Previous Rating Action and Principal Methodologies

The last rating action on AIB was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on Anglo was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on BoI was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on EBS was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The last rating action on ICS was on April 21, 2009, when the BFSR
was downgraded to D with a developing outlook.  The long-term bank
deposit rating was affirmed at A1 with a negative outlook at the
same time.

The last rating action on IL&P was on April 21, 2009, when the
senior debt guaranteed by the Irish government was placed on
review for possible downgrade.

The detailed ratings and actions are listed below:

Allied Irish Banks plc:

  -- Long-term bank deposit and senior debt ratings of Aa3 and the
     A1 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa2
     (on review for possible downgrade) from A2 (negative
     outlook).

  -- Cumulative Tier 1 hybrids unchanged at B1 (outlook changed to
     negative from developing)

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

Anglo Irish Bank Corporation Ltd:

  -- Long-term bank deposit and senior debt ratings downgrade to
     A3 (negative outlook) from A2 (negative outlook) and the
     dated subordinated debt is downgraded to Baa1 (negative
     outlook) from A3 (negative outlook).

  -- Short-term bank deposit and debt rating of Prime-1 is
     affirmed.

  -- Undated junior subordinated debt rating unchanged at B3
     (negative outlook).

  -- Cumulative Tier 1 hybrids downgraded to Caa1 (negative
     outlook) from B3 (negative outlook).

  -- Non-cumulative preferred shares and hybrids downgraded to
     Caa3 (negative outlook) from Caa1 (negative outlook)

  -- Bank financial strength rating downgraded to E (stable
     outlook) from E+ (developing outlook).

Bank of Ireland:

  -- Long-term bank deposit and senior debt ratings of Aa3 and the
     A1 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa2
     (on review for possible downgrade) from A2 (negative
     outlook).

  -- Cumulative Tier 1 hybrids unchanged at B1 (outlook changed to
     negative from developing)

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

EBS Building Society:

  -- Long-term bank deposit and senior debt ratings of A2 are
     unaffected

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Non-cumulative preferred shares and hybrids downgraded to B3
     (negative outlook) from B1 (developing outlook)

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

ICS Building Society:

  -- Long-term bank deposit rating of A1 placed on review for
     possible downgrade.

  -- Short-term bank deposit rating of Prime-1 is unaffected.

  -- Bank financial strength rating of D is unaffected and carries
     a developing outlook.

Irish Life & Permanent:

  -- Long-term bank deposit and senior debt ratings of A1 and the
     A2 dated subordinated debt rating placed on review for
     possible downgrade

  -- Short-term bank deposit and debt rating of Prime-1 is
     unaffected.

  -- Undated junior subordinated debt rating downgraded to Baa3
     (on review for possible downgrade) from A3 (negative
     outlook).

  -- Bank financial strength rating of D is unaffected and carries
     a negative outlook.

All of the banks are headquartered in Dublin, Ireland.


ELVA FUNDING: S&P Junks Rating on EUR100 Mil. 2007-3 Notes
----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CCC-' from 'B-' its
credit rating on the EUR100.0 million and JPY1.1 billion secured
credit-linked floating-rate notes series 2007-3 (Euclid CDO)
issued by Elva Funding PLC.

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

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


OCELOT CDO I: S&P Affirms 'BB-' Rating on EUR3 Mln Class D Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services removed from CreditWatch
negative and affirmed its credit ratings on four synthetic
collateralized debt obligation tranches issued by Ocelot CDO I PLC
under the Ocelot CDO II program.  At the same time, S&P affirmed
its credit ratings on another seven tranches.

S&P took rating actions on 11 tranches, backed by the Ocelot II
portfolio on March 25, 2009.  It is S&P's opinion that the
probability of default for each tranche at the current ratings has
decreased from the levels in March.  The affirmations reflect
S&P's view that the probability of default is consistent with the
current ratings.

The current ratings are based on S&P's criteria for rating
synthetic CDOs.  As S&P recently announced, however, S&P is
reviewing these criteria.  As highlighted in this notice, S&P is
soliciting feedback from market participants regarding proposed
changes to S&P's collateralized loan obligation and synthetic CDO
criteria.  S&P will evaluate the market feedback, which may result
in changes to the criteria.  Any such criteria changes, as well as
other credit factors, may affect S&P's ratings on the notes
referenced in this media release.

                           Ratings List

     Ratings Removed From Creditwatch Negative and Affirmed

                         Ocelot CDO I PLC
EUR20 Million Class A Floating-Rate Mezzanine Notes Series 2005-01
                           (Ocelot II)

                           Rating
                           ------
              To                        From
              --                        ----
              AA                        AA/Watch Neg

                         Ocelot CDO I PLC
EUR50 Million Class A Floating-Rate Mezzanine Notes Series 2006-02
                         (Ocelot CDO II)

                            Rating
                            ------
              To                        From
              --                        ----
              AA                        AA/Watch Neg

                          Ocelot CDO I PLC
EUR2 Million Class A Floating-Rate Mezzanine Notes Series 2006-03
                           (Ocelot CDO II)

                           Rating
                           ------
               To                        From
               --                        ----
               AA                        AA/Watch Neg

                         Ocelot CDO I PLC
       $10 Million Class A Combination Notes Series 2006-06
                         (Ocelot CDO II)

                           Rating
                           ------
              To                        From
              --                        ----
              AA                        AA/Watch Neg

                         Ratings Affirmed

                         Ocelot CDO I PLC
EUR50 Million Class B Floating-Rate Mezzanine Notes Series 2005-02
                           (Ocelot II)

                               BBB+

                         Ocelot CDO I PLC
EUR2 Million Class C Floating-Rate Mezzanine Notes Series 2005-03
                           (Ocelot II)

                               BBB-

                         Ocelot CDO I PLC
EUR3 Million Class D Floating-Rate Mezzanine Notes Series 2005-04
                          (Ocelot CDO II)

                                BB-

                         Ocelot CDO I PLC
     EUR1.225 Million Class B Floating-Rate Mezzanine Notes
                   Series 2005-06 (Ocelot CDO II)

                              BBB+p

                         Ocelot CDO I PLC
      EUR0.78 Million Class C Floating-Rate Mezzanine Notes
                          Series 2005-07
                         (Ocelot CDO II)

                              BBB-p

                         Ocelot CDO I PLC
       EUR0.61 Million Class D Floating-Rate Mezzanine Notes
                          Series 2005-08
                          (Ocelot CDO II)

                              BB-p

                         Ocelot CDO I PLC
EUR1 Million Class C Floating-Rate Mezzanine Notes Series 2006-04
                         (Ocelot CDO II)

                              BBB+


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


BTA BANK: Fitch Says Nonpayment Won't Affect RMBS Transaction
-------------------------------------------------------------
Fitch Ratings says that BTA Bank's decision to cease principal
payments on its wholesale financial obligations has, so far, had
no detrimental impact on the RMBS transaction of its subsidiary
BTA Ipoteka, Kazakh Mortgage Backed Securities 2007-1 B.V.
However, the servicer may need to be replaced amid the ongoing
stress in the Kazakh banking sector, and Fitch remains concerned
about the negative impact this could have on the transaction.
Such a move would also mark the first time that a Commonwealth of
Independent States' structured finance transaction experiences an
exchange of the servicer.

Fitch downgraded Kazakh MBS's notes on May 8, 2009, on concerns
over the portfolio's future performance and the potential
operational disruptions that could be caused by replacement of
BTAI as the servicer with Halyk Bank (Halyk, rated 'B+'/Negative).
As such, the transaction's ratings remain on Rating Watch
Negative.

As of the present date, the trustee has not terminated BTAI's
servicing of the transaction.  The trustee is contractually
entitled to do so by giving notice to BTAI and specifying a
termination date.  The trustee has informed Fitch that it is
monitoring developments, and particularly whether BTAI has
continued a daily sweep of collections to the issuer's offshore
account.

Notwithstanding this contractual pre-arrangement and based on
regular conversations with BTAI, Halyk and the trustee, Fitch
believes it would be challenging to immediately replace the
servicer in a short time frame.  The agency believes that the
current exchange of information and data would be insufficient for
Halyk to perform this function effectively without the cooperation
of BTAI.  BTAI has agreed to notify borrowers about the assignment
of loan claims and to initiate a redirection of payments if
requested by the trustee.  If instead of BTAI, Halyk were required
to do this, it would foremost need debtors' contact details which
it does not possess.  In addition, notification letters have not
yet been prepared nor has an alternative collection account been
set up in the name of the issuer.  The redirection of borrower
payments may therefore not be effected overnight, which exposes
the transaction to commingling risk.  According to Fitch's
calculations, up to three months of payments may be lost before
the available credit enhancement is depleted to levels
inconsistent with the current ratings.  If BTAI stopped its
cooperation overnight, this assumption would likely be tested.

In addition, Halyk would either need to use BTAI's software or,
alternatively, amend its own IT systems to administer the US$-
indexed loans.  While existing agreements give Halyk the right to
access BTAI's premises and make use of its systems for a limited
period of time, this could be difficult to achieve.  It would also
not resolve the need to change Halyk's systems.

Halyk would also need to receive the physical credit files and
review them for completeness and for compliance with Kazakh
regulations.  As of the present date, only the mortgage
certificates are held with Bank Centercredit ('B'/Evolving) and as
such are outside of BTAI's premises.  However, Halyk would need
the physical credit files to enforce claims against borrowers.
It's also likely that Halyk would need to increase staff levels,
which will cause expense and take time, to handle the takeover of
the documents.

Fitch understands that the transaction parties are negotiating the
next steps to be taken and the agency continues to monitor the
situation closely.  Ultimately, the trustee will have to decide
whether the servicing will be left with BTAI, be handed over to
Halyk in the near future, or whether Halyk will be given more time
to prepare the takeover, thus deferring the replacement as long as
BTAI continues to fulfil its contractual obligations.

If BTAI ceased passing collections to the issuer, the transaction
would need to use the available liquidity support to ensure the
timely payment of interest on the notes.  As of the last payment
date, the amount drawable under the liquidity facility reached its
floor of US$4.2 million.  Based on Fitch's calculations this would
be sufficient to cover up to 14 months of interest payments on the
notes.

BTAI used to repurchase distressed and restructured loans on its
balance sheet.  It has limited this practice to repurchases
sponsored by Samruk-Kazyna, the national welfare fund.  Loans
eligible for the program are to borrowers that own only one
property of up to 120sqm of living space and who are not in
payment arrears.  As such, Fitch expects that more losses will be
allocated to the transaction as delinquent loans will no longer be
taken back by the seller.

Kazakh MBS's ratings are:

  -- Class A (ISIN XS0293196266): 'BB+'; RWN; Loss Severity Rating
     'LS-1'

  -- Class B (ISIN XS0293196696): 'B'; RWN; Loss Severity Rating
     'LS-1'

  -- Class C (ISIN XS0293196779): 'CCC'; RWN; Recovery Rating
     'RR4'


GRATIS LLP: Creditors Must File Claims by June 26
-------------------------------------------------
Creditors of LLP Gratis have until June 26, 2009, to submit proofs
of claim to:

         Butin Str. 44
         Micro district Taugul 3
         Almaty
         Kazakhstan
         Tel: 8 705 203 30-32

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 20, 2009,
after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Tauelsyzdyk Str. 53
         Taldykorgan
         Almaty
         Kazakhstan


M-SNUB LLP: Creditors Must File Claims by June 26
-------------------------------------------------
Creditors of LLP M-Snub have until June 26, 2009, to submit proofs
of claim to:

         Butin Str. 44
         Micro district Taugul 3
         Almaty
         Kazakhstan
         Tel: 8 705 203 30-32

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on March 20, 2009 after
finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Almaty
         Tauelsyzdyk Str. 53
         Taldykorgan
         Almaty
         Kazakhstan


PETRO GROUP: Creditors Must File Claims by June 26
--------------------------------------------------
Creditors of LLP Investment Construction Association Petro Group
have until June 26, 2009, to submit proofs of claim to:

         Jumabaev Str. 109-301
         Petropavlovsk
         North Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of North Kazakhstan
commenced bankruptcy proceedings against the company on March 31,
2009 after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Brusilovsky Str. 60
         Petropavlovsk
         North Kazakhstan
         Kazakhstan


STROY TRADE 2005: Creditors Must File Claims by June 26
-------------------------------------------------------
LLP Stroy Trade 2005 is undergoing liquidation.  Creditors of
have until June 26, 2009, to submit proofs of claim to:

         Tynybaev Str. 28-2
         Shymkent
         South Kazakhstan
         Kazakhstan


TEMIR TRANS: Creditors Must File Claims by June 26
--------------------------------------------------
LLP Temir Trans Trade is undergoing liquidation.  Creditors have
until June 26, 2009, to submit proofs of claim to:

         Severnaya Promzona
         Pavlodar
         Kazakhstan


===========
L A T V I A
===========


* LATVIA: CDS Spread Widens, May Be Forced to Devalue Lat
---------------------------------------------------------
Dow Jones reports that according to CMA DataVision, the cost of
insuring Latvian sovereign debt against default soared to 672
basis points Wednesday, over 40 basis points wider on the day.

According to Dow Jones, the spread widening means it now costs
around US$672,000 a year to insure a notional US$10 million of
Latvian bonds against default for five years, up from around
US$629,000 it cost Tuesday.

Dow Jones says the financial crisis in Latvia escalated further
Wednesday, with the treasury failing to sell any of its debt
securities on offer at an auction and money-market rates soaring
to a new high as banks declined to lend to each other.

                           Devaluation

The Associated Press reports that a failed sale of state treasury
bonds on Wednesday fueled concerns about a devaluation and sent
Swedish banking shares lower.

AP relates Prime Minister Valdis Dombrovski Dombrovskis' center-
right government and central bank have so far refused to consider
a devaluation, arguing that such a step would spark high
inflation, massive loan defaults, and the banking industry's
collapse.  It would also be a big blow to the Swedish banks that
control 50 percent of Latvia's lending market, AP adds.

"The Latvian lat is not very liquid and the financial system is
not completely developed so investors have been using the Swedish
krona as the currency to bet on a devaluation of the Lat," AP
quoted Swedbank currency analyst Karl-Johan Bergstrom as saying.

Associated Press discloses experts -- both domestic and foreign --
say Latvia eventually will be forced to devalue because a weaker
currency would give it much-needed advantage by boosting the
attractiveness of exports.

AP states according to analysts, a decision to devalue could have
a ripple effect on neighbors Estonia and Lithuania, forcing them
to let go of their currency pegs, too.

                           Bailout

AP recalls the Latvian government said Monday last week that it
had approved a new budget with a 9.2 percent deficit -- far more
than the 5 percent agreed upon with the International Monetary
Fund.  Parliament is currently reviewing the amendments and has
until the end of the month to approve them, AP discloses.
According to AP, the larger-than-expected deficit increases the
risk that Latvia might fail to reach a new agreement with the IMF,
which would jeopardize the next installment of a EUR7.5 billion
(US$10.6 billion) bailout loan.  Latvia, AP notes, is expecting to
receive EUR1.2 billion in July from the IMF and the EU as part of
the bailout package.  AP states Minister Dombrovskis has suggested
that Latvia would become insolvent if it did not receive the July
tranche.


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


KHAMSIN CREDIT: S&P Junks Rating on EUR15 Mil. Floating Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CCC+' from 'BBB'
and removed from CreditWatch negative its credit rating on the
EUR15 million floating-rate managed credit-linked notes (Orient
IC-Xpress) series 19 issued by Khamsin Credit Products
(Netherlands) II B.V.

Due to an administrative error, S&P did not include this
transaction in S&P's regular surveillance, which would have
resulted in a lowering of the rating on April 30 when S&P took its
monthly European synthetic collateralized debt obligation rating
actions after running the SROC (synthetic rated over
collateralization) figures.  The rating action reflects S&P's
discovery of the error.

S&P's SROC scenario results for this tranche both currently and
projected over 90 days are:

          Rating            Projected 90+ days
          scenario          SROC (%)             SROC (%)
          --------          -------------------  --------
          BBB               96.9113              97.0321
          BBB-              97.5912              97.7051
          BB+               97.8137              97.9292
          BB                98.2252              98.3366
          BB-               98.6117              98.7164
          B+                98.9434              99.0372
          B                 99.2964              99.3850
          B-                99.7025              99.7869
          CCC+             100.4124              100.4920

Where SROC is less than 100%, S&P runs scenarios that project the
current portfolio 90 days into the future, assuming no asset
rating migration.  Where this projection indicates that the SROC
would return to a level above 100% at that time, the rating is
maintained, but S&P place it on CreditWatch negative.  If, on the
other hand, the projection indicates that the SROC would remain
below 100%, S&P immediately lower the rating.


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


AVTOVAZ OAO: Russian Gov't to Provide RUR25 Billion Loan
--------------------------------------------------------
RIA Novosti reports that Russian Prime Minister Vladimir Putin has
instructed the government to provide a RUR25 billion (US$806
million) loan to support AvtoVAZ OAO.

The report relates the government's website said on Thursday the
funds will be granted to the Russian Technology Corporation, a key
shareholder in AvtoVAZ, which in turn will grant an interest free
loan to the automaker.

The report discloses AvtoVAZ CEO Boris Alyoshin earlier said the
government's aid would be channeled primarily to bridging the
company's debts for earlier periods.  According to the report, the
company's debt stood at RUR44 billion (US$1.3 billion) as of mid-
April, a figure that includes bond issues.

The report recalls the company has several times suspended
production over payment disputes with car part suppliers.

On April 1, 2009, the Troubled Company Reporter-Europe, citing
The Moscow Times, reported that Mr. Alyoshin previously asked the
government for RUR26 billion to restructure debt to suppliers and
creditors.

Based in Tolyatti, Russia, AVTOVAZ OAO (AVTOVAZ JSC) --
http://www.lada-auto.ru/-- is engaged in the manufacture of
passenger cars.  The Company's main brands are LADA PRIORA, LADA
Kalina, LADA Samara, LADA 110 and others.  The Company is also
involved in the manufacture of automobile components, distribution
of automobiles and spare parts and operation of automobile service
centers. The Company is also active in a variety of other sectors,
such as power supply, transportation, utilities, construction,
insurance, banking and finance.  AVTOVAZ OAO sells its products on
the domestic market, as well as exports them to Kazakhstan,
Ukraine, Azerbaijan, Armenia, Egypt, Syria, Greece, Belarus,
Uruguay, Cyprus, Germany and others.  It operates through one
representative office located in Moscow, several subsidiaries and
affiliated companies.


AVTO-MASH LLC: Creditors Must File Claims by June 15
----------------------------------------------------
Creditors of LLC Avto-Mash (TIN 2801132394, PSRN 1082801004813)
(Trucks, Vans Manufacturing) have until June 15, 2009, to submit
proofs of claims to:

         T. Bryantseva
         Temporary Insolvency Manager
         Apt. 24
         Zaburkhanovskaya Str. 85
         Blagoveshchensk
         Russia

The Arbitration Court of Amurskaya will convene on Aug. 11, 2009,
to hear bankruptcy supervision procedure on the company.  The case
is docketed under Case No. ?042008/2009.

The Debtor can be reached at:

         LLC Avto-Mash
         Mukhina Str. 150
         Blagoveshchensk
         Russia


LES-PROM LLC: Creditors Must File Claims by June 15
---------------------------------------------------
The Arbitration Court of Bryanskaya commenced bankruptcy
proceedings against LLC Les-Prom (TIN 3202011265) (Forestry) after
finding the company insolvent.  The case is docketed under
Case No. ?092565/2009.

Creditors have until June 15, 2009, to submit proofs of claims to:

         S. Chernobrovenko
         Insolvency Manager
         Office 14
         Zelenaya Str. 2V
         Dubovoe
         Belgorodskiy
         308501 Belgorodskaya
         Russia

The Debtor can be reached at:

         LLC Les-Prom
         Pervomayskaya Str. 1a
         Bytosh
         Dyat'kovo
         Bryanskaya
         Russia


MEGA-STROY LLC: Creditors Must File Claims by June 15
-----------------------------------------------------
The Arbitration Court of Khabarovskiy commenced bankruptcy
supervision procedure on LLC Mega-Stroy (TIN 2722050660)
(Construction).  The case is docketed under Case No.?733392/2009.

Creditors have until June 15, 2009, to submit proofs of claims to:

         T. Nenasheva
         Temporary Insolvency Manager
         Office 7
         Komsomolskaya Str. 101
         680028 Khabarovsk
         Russia

The Debtor can be reached at:

         LLC Mega-Stroy
         Office 2
         Komsomolskaya Str. 101
         680028 Khabarovsk
         Russia


RSHB CAPITAL: Fitch Assigns Rating on Upcoming Senior Notes Issue
-----------------------------------------------------------------
Fitch Ratings has assigned RSHB Capital S.A.'s upcoming issue of
senior unsecured US$-denominated loan participation notes an
expected Long-term rating of 'BBB'.

The notes will be used solely for financing a loan to OJSC Russian
Agricultural Bank.  RAB's ratings are: Long-term Issuer Default
Rating 'BBB' with a Negative Outlook, Short-term IDR 'F3',
Individual Rating 'D', Support Rating '2', Support Rating Floor
'BBB' and National Long-term rating 'AAA(rus)' with a Stable
Outlook.  The final rating of the notes is contingent upon the
receipt of final documentation conforming materially to
information already received.

The notes will be issued under RAB's loan participation notes
program, dated May 5, 2006, which currently has a Long-term rating
of 'BBB' and a Short-term rating of 'F3'.  The program's limit
will be increased to US$7 billion from US$5 billion, while its
other main terms and conditions -- outlined in Fitch's May 3, 2006
announcement -- will remain unchanged.  Issues under the program
are rated separately.

RAB is the third-largest Russian bank by capital, fourth-largest
by assets and second-largest by regional branch network.  It is
100% owned by the state and specializes in servicing the
agribusiness sector and related sub-sectors in Russia.


SOUTH WINERY: Creditors Must File Claims by June 15
---------------------------------------------------
Creditors of LLC South Winery Company (TIN 3445079988, PSRN
1063460032680) have until June 15, 2009, to submit proofs of
claims to:

         O. Menkova
         Temporary Insolvency Manager
         Barrikadnaya Str.8
         400074 Volgograd
         Russia

The Arbitration Court of Volgogradskaya will convene on Sept. 30,
2009 to hear bankruptcy supervision procedure on the company.  The
case is docketed under Case No. ?126912/2009.

The Debtor can be reached at:

         LLC South Winery Company
         Barrikadnaya Str.8
         400074 Volgograd
         Russia


SOVCOMBANK: Moody's Cuts Bank Financial Strength Rating to 'E'
--------------------------------------------------------------
Moody's Investors Service has downgraded the long-term foreign and
local currency deposit ratings of Sovcombank to Caa1 from B3, and
the bank financial strength rating to E from E+.  At the same
time, Moody's Interfax Rating Agency has downgraded the long-term
national scale credit ratings of Sovcombank to Ba3.ru from
Baa2.ru.  Moscow-based Moody's Interfax is majority owned by
Moody's, a leading global rating agency.  The outlook for the
deposit ratings is negative while the BFSR has a stable outlook.

The downgrade of Sovcombank's ratings reflects the rapid
impairment of the bank's assets resulting in a significant erosion
of the bank's capital level.  Moody's does not observe any
immediate liquidity threats, as the bank demonstrates a relatively
stable customer deposit base and currently enjoys a reasonable
cushion of liquid assets; however, the rating agency is of the
opinion that economic capitalization currently is the key
determinant in assessing a financial strength of the bank.  Thus,
the above-mentioned concerns together with the poor financial
fundamentals and recently increased appetite for market risk has
transformed into a downgrade of Sovcombank's BFSR to E from E+.

"The rapid growth of NPLs (defined as overdue 90+ days), which at
end-March 2009 reached 18% compared to 11.0% and 4.8%,
respectively, at YE2008 and YE2007, has transformed into material
losses over the recent period and created significant downward
pressure on Sovcombank's Tier 1 capital which in the first quarter
of 2009 deteriorated to 10.5% level from 11.9% at YE2009 in
accordance with Basel I", said Semyon Isakov, a Moscow-based
Moody's Assistant Vice President-Analyst, and lead analyst for
this issuer.

Due to the capital injection of RUB500 million (US$16.2 million)
made by the bank's shareholders in Q1 2009, the bank partly
maintained its economic capitalization.  However, Moody's is of
the opinion that the current level of loan loss provisioning
(15.6% at end-March 2009 in accordance with unaudited IFRS) is
understated given the predominantly unsecured nature of the bank's
credit exposure, while the ongoing hostile operating environment
in the country is expected to continue severely damage the quality
of the bank's loan book, leading to a further erosion of the
bank's capital base.  In addition, Sovcombank's poor operating
efficiency and profitability challenges the viability of its
business model in the current environment and forced the bank to
considerably increase its appetite for market risk through
substantial investments in fixed-income instruments.

The negative outlook on Sovcombank's deposit ratings reflects
Moody's opinion that there is potential for further pressure on
the bank's financial metrics and, particularly, for its capital
through asset quality issues as a result of a prolonged and severe
economic downturn in Russia.

Moody's previous rating action on Sovcombank was on July 3, 2008,
when B3/Not Prime/E+ global scale ratings were assigned.

Headquartered in Kostroma in the Russian Federation, Sovcombank
operates in 25 regions of Russia with a key focus on retail
products.  The bank reported total assets of RUB25.4 billion
(US$864 million) and RUB2.5 billion (US$84.8 million) of
shareholders' equity under IFRS as at year-end 2008.  Net loss for
2008 totalled RUB691 million (US$23.5 million) in accordance with
IFRS.  The reported capital adequacy ratio was 15.4% at YE 2008.


STROY-DON LLC: Creditors Must File Claims by June 15
----------------------------------------------------
Creditors of LLC Stroy-Don (Construction) have until June 15,
2009, to submit proofs of claims to:

         E. Grichenko
         Temporary Insolvency Manager
         Post User Box 52
         Voronezh
         Russia

The Arbitration Court of Voronezhskaya will convene at 10:30 a.m.
on Sept. 9, 2009, to hear bankruptcy supervision procedure.  The
case is docketed under Case No. ?143060/2009 10/27B.

The Debtor can be reached at:

         LLC Stroy-Don
         Bazovaya Str. 13B
         Voronezh
         Russia


VIMPELCOM: Court Denies Telenor's Stay of Enforcement
-----------------------------------------------------
The Moscow City Arbitrazh Court on Wednesday, June 3, 2009, denied
the request by Telenor East Invest AS to stay enforcement
proceedings commenced by Moscow's bailiff service under the writ
of execution issued by the Omsk court to recover US$1.73 billion
from Telenor East Invest AS following the action brought by
Farimex Products, Inc., holder of ADRs equal to 0.002% of
VimpelCom shares.  The hearings started April 14, and continued
April 30, and 8 May 6 and 8 until Wednesday's decision.

Telenor will soon appeal the Moscow court's ruling to the Ninth
Arbitrazh Appellate Court in Moscow.

On June 10, 2009, the Federal Arbitrazh Court of the West Siberian
District in Tyumen will hear the complaint of Telenor on the Omsk
ruling.

Earlier, on May 26, 2009 the proceeding of the Telenor case in
Tyumen was adjourned because of the inappropriate notification of
the third party (the representative of A. Reznikovich and M.
Fridman) by the court.

                        About VimpelCom

Headquartered in Moscow, Russia, VimpelCom (NYSE: VIP) --
http://www.vimpelcom.com/-- provides mobile telecommunications
services in Russia and Kazakhstan with newly acquired operations
in Ukraine, Tajikistan and Uzbekistan.  The Company operates
under the 'Beeline' brand in Russia and Kazakhstan.  In
addition, VimpelCom is continuing to use 'K-mobile' and 'EXCESS'
brands in Kazakhstan.

                        *     *     *

OJSC Vimpel Communications continues to carry a 'Ba2' long-term
corporate family rating from Moody's Investors Service with
negative outlook.


VURNARSKIY STARCH: Creditors Must File Claims by June 15
--------------------------------------------------------
The Arbitration Court of Chuvashia commenced bankruptcy
proceedings against  LLC Vurnarskiy Starch Factory (TIN
2104004211, PSRN 1022102030345) after finding the company
insolvent.  The case is docketed under Case No. ?792655/2009.

Creditors have until June 15, 2009, to submit proofs of claims to:

          Ye.Ulyankin
          Insolvency Manager
          Post User Box 441
          Postal Office 10
          Novocheboksarsk
          429960 Chuvashia
          Russia

The Court is located at:

         The Arbitration Court of Chuvashia
         Prospect Lenina 4
         Cheboksary
         428000 Chuvashia
         Russia

The Debtor can be reached at:

         LLC Vurnarskiy Starch Factory
         Kumashi
         429201 Vurnarskiy
         Chuvashia
         Russia


* Fitch Says Russian Construction & Property Sector Liquidity Weak
------------------------------------------------------------------
Fitch Ratings says the Russian and Ukrainian construction &
property sector has the weakest liquidity position of all
corporate sectors covered by the agency in EMEA.  The liquidity
position of many RUCP companies worsened over 2008 and Q109 as end
markets rapidly weakened and bank financing withdrew from the
system.  This is a key conclusion of a report published entitled
'Liquidity Focus: Russia/Ukraine Construction and Property'.

"Liquidity is not likely to improve until regional real estate
markets reach a new price equilibrium, sustainable operational
cash flow generation returns, and debt capital markets re-open for
issuers in the Russian/Ukrainian real estate sector," said Julian
Crush, Senior Director in Fitch's EMEA Construction & Property
team.  "In the interim, Fitch expects to see is a series of high
profile debt restructurings in this sector, the outcomes of which
remain uncertain."

There are no long-term public bonds in the capital structures of
Fitch-rated RUCP issuers.  As a result of this, the sector's
refinancing risk is likely to remain high for several years with
the dominance of short-term domestic bank debt in corporate
funding structures, weak operating cash flows, the withdrawal of
foreign bank capital, and the low probability of success for any
attempts to raise enough new equity to make any real positive
impact on liquidity.  The aggregate total short-term debt of
Fitch's rated universe of RUCP issuers is approximately US$1.5
billion equivalent, accounting for 45% of total gross debt of
US$3.3 billion -- in a weak market context, this level represents
significant credit risk.

Across Fitch's universe of RUCP issuers, balance sheet cash is
low, committed undrawn facilities are largely absent (committed
undrawn facilities/short-term debt at only 15%, compared with 234%
for UK property investment companies) and, in all cases, these
issuers are free cash flow negative.  In summary, the total
sources of liquidity available to meet upcoming debt maturities
are highly constrained and hence default risk is significantly
heightened, as reflected in Fitch's ratings.

Fitch's entire rated universe in this sector falls into the 'weak'
categorization of relative liquidity analysis.  Liquidity scores
(sources of liquidity to uses of liquidity over a 12 month period)
are less than 1x (ranging from 0.03x to 0.7x), indicating an
unhealthy reliance on the decisions of domestic and international
banks to extend loan maturities and/or provide new financing to
deal with upcoming debt maturities.

Since September 2008, Fitch has undertaken nine separate rating
actions in this sector where worsening liquidity has been a
contributory factor.  Current rated coverage includes JSC Sistema-
Hals ('B', Rating Watch Evolving), OJSC LSR Group ('B-', Rating
Watch Negative), TMM Real Estate Development plc ('CC' Rating
Watch Negative) and Mirax Group Holding BV ('C', Rating Watch
Negative).


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


CONCORDIA BUS: S&P Maintains 'B-' Long-Term Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it maintains its 'B-'
long-term corporate credit ratings on Sweden-based bus service
provider Concordia Bus AB and subordinate holding company
Concordia Bus Nordic Holding AB (collectively Concordia) on
CreditWatch, but has revised the implications to positive from
developing.  This follows the recent announcement by Concordia of
refinancing plans for its EUR130 million senior secured note issue
maturing Aug. 1, 2009.  The ratings were originally placed on
CreditWatch with developing implications on Feb. 23, 2009,
prompted by the material and imminent refinancing risk arising
from these notes, and S&P's uncertainty regarding the future
capital structure of the business.

"The revised CreditWatch placement reflects our view that a
successful issuance of the proposed Swedish krona 600 million-
SEK800 million pre-emptive rights issue, and new EUR130 million
three-year senior secured notes, are likely to significantly
improve Concordia's liquidity position, which is currently a
constraint on the ratings," said Standard & Poor's credit analyst
Stuart Clements.  "The revised CreditWatch also reflects our view
that with SEK671 million of the rights issue and EUR95 million of
the senior secured notes effectively underwritten by existing
shareholders and noteholders, S&P anticipates that the imminent
refinancing risk will now be addressed."

Concordia's key credit ratios weakened slightly in the year to
Feb. 28, 2009.  This was due to the adverse effect on cash flows
of the preference share dividend payments, as well as higher debt
levels.  The increased debt was driven by additional finance lease
commitments (to fund buses for new contracts) and an adverse
foreign-exchange translation effect on the senior notes.  Funds
from operations to adjusted debt reduced to 11.2% from 14.8%, and
EBITDA to interest declined to 1.5x from 1.8x.

Standard & Poor's aims to update the CreditWatch within three
months, after further discussions with the company.  At that
point, S&P will evaluate the success of the group's refinancing
plans and their impact on Concordia's financial risk profile, in
particular its capital structure and cash flows.  S&P considers
the group's underlying business risk profile to be strong for the
'B-' rating, which remains constrained by the uncertainty
surrounding the refinancing risk.


* SWEDEN: May Part-Nationalize Banks Exposed to Baltic Crisis
-------------------------------------------------------------
Ambrose Evans-Pritchard at Telegraph.co.uk reports that Sweden is
preparing to part-nationalize banks exposed to the economic
collapse in Baltic states.

The report relates Finance Minister Anders Borg said the Swedish
state will buy stakes in distressed banks if they fall deeper into
trouble but will impose draconian terms.

"We want to be very clear so that people know what could happen,"
the report quoted the Swedish finance minister as saying.  "If the
banks come to us with big credit losses, where they have
previously earned big money on lending, then shareholders will
take the consequences.  We're going to be clear that insolvent
banks that don't meet legal requirements will see an injection of
funds, primarily through government ownership."

According to the report, Swedish banks have lent more than US$75
billion (GBP46 billion) to Latvia, Lithuania and Estonia, led by
Swedbank and SEB.


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


ANSHER GROUP: Claims Filing Deadline is June 15
-----------------------------------------------
Creditors of Ansher Group AG are requested to file their proofs of
claim by June 15, 2009, to:

         Anvar Rasulev
         Anaher Group AG
         Bahnhofplatz 2
         8001 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at a general meeting held
on April 24, 2009.


BALACO FINANZ: Creditors Must File Claims by June 15
----------------------------------------------------
Creditors of Balaco Finanz Holding AG are requested to file their
proofs of claim by June 15, 2009, to:

         Charlotte Urfer
         Liquidator
         Chamerstrasse 52
         6300 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
general meeting held on April 29, 2009.


EFP IMMOCREDIT: Claims Filing Deadline is June 12
-------------------------------------------------
Creditors of EFP ImmoCredit AG are requested to file their proofs
of claim by June 12, 2009, to:

         Frey Pfister AG
         Forchstrasse 2
         8008 Zurich
         Switzerland

The company is currently undergoing liquidation in Zurich.  The
decision about liquidation was accepted at an extraordinary
general meeting held on April 8, 2009.


GENIUS GAMES: Claims Filing Deadline is June 12
-----------------------------------------------
Creditors of GENIUS GAMES AG are requested to file their proofs of
claim by June 12, 2009, to:

         Progames AG
         Pierre Reinau
         St. Johanns-Ring 133
         4056 Basel
         Switzerland

The company is currently undergoing liquidation in Basel.  The
decision about liquidation was accepted at a general meeting held
on April 21, 2009.


KALTE-SERVICE JOHANN: Creditors Must File Claims by June 15
-----------------------------------------------------------
Creditors of Kalte-Service Johann Moder GmbH are requested to file
their proofs of claim by June 15, 2009, to:

         Fluri Treuhand GmbH
         Fronalpstrasse 7
         8867 Niederurnen
         Switzerland

The company is currently undergoing liquidation in Bilten.  The
decision about liquidation was accepted at an extraordinary
general meeting held on April 21, 2009.


LUWATEC AG: Claims Filing Period Ends June 15
---------------------------------------------
Creditors of Luwatec AG are requested to file their proofs of
claim by June 15, 2009, to:

         Yvonne Graf-Wenger
         Liquidator
         Friedhofstrasse 15
         8192 Glattfelden
         Switzerland

The company is currently undergoing liquidation in Unterseen.  The
decision about liquidation was accepted at a general meeting held
on April 9, 2009.


ZIMEX AVIATION: Creditors Must File Claims by June 15
-----------------------------------------------------
Creditors of Zimex Aviation Maintenance AG are requested to file
their proofs of claim by June 15, 2009, to:

         Dr. Daniel Bugmann
         Bugmann Stocker Seiler Capital Partners AG
         General-Guisan-Quai 30
         8002 Zurich
         Switzerland

The company is currently undergoing liquidation in Kloten.  The
decision about liquidation was accepted at an extraordinary
general meeting held on Feb. 26, 2009.


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


* TURKEY: JCR Affirms 'BB-' Foreign and Local Currency Ratings
--------------------------------------------------------------
JCR has affirmed its BB- ratings on the Republic of Turkey's
foreign and local currency long-term senior debts. The outlook of
the ratings is stable.

The Turkish economy posted an average real GDP growth rate 6.9%
per year for five years through 2007.  However, it deteriorated
sharply later, registering a minus 6.2% growth in the fourth
quarter of 2008 as the global financial and economic crisis spread
into the real economy.  As a result, the annual growth rate slowed
down to 1.1% in 2008 from 4.7% in 2007.  For 2009, with domestic
demand centering on private consumption and private investment
expected to become sluggish due mainly to slower exports and a
worse employment environment, the economy is likely to fall into a
substantial negative growth for the first time since 2001. For
2010, although it may return to recovery on the assumption of a
moderate pickup of the world economy, the growth rate is likely to
stay at lower levels.

The Turkish government has been negotiating with the IMF for a new
standby arrangement.  However, they have apparently yet to reach
an agreement due to differences over conditions pertaining to
Turkey's fiscal policy.  In order to realize a sustainable
economic development, the Turkish economy will have to overcome
weakness of its external balance as exemplified by its current
account deficit, which is apt to expand rather easily.  In this
sense, a new standby arrangement with the IMF is expected to play
an important role in improving the country's international
confidence especially when the economy deteriorates sharply.  JCR
will keep watching future developments of the matter as well as
progress on reforms aimed at Turkey's EU membership.

On the political front, the ruling Justice and Development Party
(AKP) managed to retain its position as the largest party in the
unified local elections in March 2009.  However, its share of the
votes fell as compared with that in the previous elections.  In
recent years, the country has been faced with various political
and social problems such as the terrorist attacks reportedly by
the Kurdish Workers' Party (PKK), the presidential election and
the prosecutor's legal action over the dissolution of AKP.  It is
crucial for the country to improve its political and social
stability, a prerequisite for corporate investment, as it seeks to
realize sustainable economic development in the medium and long
term and overcome the weakness of its external balance.  The
Erdogan government needs to maintain the people's support and
improve political and social stability amid the faltering economy.
It also needs to maintain the country's international confidence
by taking advantage of its new relationship with the IMF and
through implementation of reforms geared for its EU membership.

1. Economic situation

The Turkish economy grew an average 6.9% per year in real GDP
terms for five years until 2007.  However, it turned slowing down
after peaking out at 7.3% in the first quarter of 2008.
Especially, it plunged to a minus 6.2% real GDP growth rate in the
fourth quarter of the year as the impact of the global financial
and economic crisis spread across the real economy.  As a result,
the annual growth rate of the economy slowed down to 1.1% in 2008
from 4.7% in 2007. With domestic demand becoming sluggish due
mainly to slower exports and increased unemployment, the economy
is likely to fall into a minus 4.9% growth in 2009 for the first
major contraction since 2001.

As for external balance, the widening current account deficit
mainly caused by a bigger trade deficit has been one of concerns
for the Turkish economy in recent years.  However, the current
account deficit to GDP ratio is expected to drop substantially to
the level of 1% in 2009 from 5.6% in 2008, thanks to sharp
reduction of the trade deficit due to the slower imports caused
mainly by the sharp drops of oil and commodity prices and decline
in exports of technology intensive sectors with higher import
dependency in the second half of 2008 as well as a steep economic
downturn.  The Turkish economy needs to overcome the weakness in
its external balance as represented by its current account deficit
which tends to expand. This requires it to secure a stable inflow
of capital centering on foreign direct investment (FDI).

Meanwhile, the government's fiscal position has significantly
improved as compared with the one during the economic crisis in
2001, thanks to the efforts it made under its standby arrangement
with the IMF.  In 2009, however, the public debt/GDP ratio which
had been on the decrease until 2008 is likely to turn rising again
due to the fiscal measures to be implemented to stimulate the
economy.

2. IMF-supported economic reforms and EU membership talks
The IMF standby arrangement was completed in May 2008 when the
Fund approved its seventh review and released the relevant
tranche.  The Turkish government has been negotiating with the
Fund for a new arrangement amid the real economy hit hard by the
global financial and economic crisis, like many other developed
and emerging economies.  However, they have reportedly yet to
reach an agreement due to differences over conditions pertaining
to Turkey's fiscal policy.

Meanwhile, talks on Turkey's EU membership have been making
progress except for some areas (eight of 35 policy areas) which
the EU decided to freeze in December 2006.  In its Progress Report
released in November 2008, the EU made a generally positive
assessment of the improved stability of the Turkish economy while
pointing out the necessity of further political reforms.  In order
for the Turkish economy to overcome the impact of the global
financial and economic crisis as smoothly as possible and to
realize sustainable economic development, the country needs to
maintain its international confidence by taking advantage of a new
standby arrangement with the IMF and through the implementation of
reforms aimed at its EU membership.  JCR will keep a close watch
on future developments in the both areas.


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


ATLANT PLUS: Creditors Must File Claims by June 13
--------------------------------------------------
Creditors of LLC Atlant Plus Ltd (code EDRPOU 20608494) have until
June 13, 2009, to submit proofs of claim to:

         S. Donkov
         Insolvency Manager
         Office 6
         Gorky str. 10
         01004 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on March 26, 2009.  The case is docketed under
Case No. B11/103-08/3.

The Court is located at:

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

The Debtor can be reached at:

         LLC Atlant Plus Ltd
         50 years of Victory Str. 80
         Belaya Tserkov
         09100 Kiev
         Ukraine


DEMETRIS LLC: Creditors Must File Claims by June 14
---------------------------------------------------
Creditors of LLC Demtris (code EDRPOU 32071580) have until
June 14, 2009, to submit proofs of claim to:

         E. Zoriana
         Insolvency Manager
         Office 253
         V. Stus Str. 28
         03142 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on April 13, 2009.  The case is docketed under
Case No. 49/261-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Demtris
         Vladimirsky Slope 2-b
         01001 Kiev
         Ukraine


ELECTROLAND LLC: Creditors Must File Claims by June 13
------------------------------------------------------
Creditors of LLC Trading Network Electroland (code EDRPOU
32674980) have until June 13, 2009, to submit proofs of claim to:

         O. Tischenko
         Insolvency Manager
         Office 33
         Mironositskaya Str. 65
         61002 Kharkov
         Ukraine

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company on April 16, 2009.  The case is docketed under
Case No. B-48/45-08.

The Court is located at:

         The Economic Court of Kharkov
         Svoboda Square 5
         61022 Kharkov
         Ukraine

The Debtor can be reached at:

         LLC Trading Network Electroland
         Molodezhnaya Str. 90
         61075 Kharkov
         Ukraine


PIRAMIDA DTM: Court Starts Bankruptcy Supervision Procedure
-----------------------------------------------------------
The Economic Court of Dnepropetrovsk region commenced bankruptcy
supervision procedure on LLC Piramida DTM (code EDRPOU 21922761).

The Insolvency Manager is:

         N. Chesnova
         Post Office Box 2047
         49033 Dnepropetrovsk
         Ukraine

The Court is located at:

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

The Debtor can be reached at:

         LLC Piramida DTM
         Teplixhnaya Str. 15A
         Yubileynoye
         52005 Dnepropetrovsk
         Ukraine


RYZHEVSKY GRANIT: Court Starts Bankruptcy Supervision Procedure
---------------------------------------------------------------
The Economic Court of Poltava commenced bankruptcy supervision
procedure on OJSC Ryzhevsky Granite Quarry (code EDRPOU 03327339).

The Insolvency Manager is:

         V. Tishkevich
         Post Office Box 216
         49000 Dnepropetrovsk
         Ukraine

The Court is located at:

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

The Debtor can be reached at:

         OJSC Ryzhevsky Granite Quarry
         Gorky Str. 151
         Komsomolsk
         39803 Poltava
         Ukraine


UKRAINIAN METALLURGICAL: Court Starts Bankruptcy Procedure
----------------------------------------------------------
The Economic Court of Kiev commenced bankruptcy supervision
procedure on LLC Ukrainian Metallurgical and Industrial Company
(code EDRPOU 32731535).

The Insolvency Manager is:

         N. Parkhatsky
         Post Office Box 19
         04060 Kiev
         Ukraine

The Court is located at:

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

The Debtor can be reached at:

         LLC Ukrainian Metallurgical and Industrial Company
         Garmatnaya Str. 4
         03067 Kiev
         Ukraine


VELIKAYA NOVOSELOVKA: Creditors Must File Claims by June 14
-----------------------------------------------------------
Creditors of LLC Velikaya Novoselovka Regional Communal Farm (code
EDRPOU 33768613) have until June 14, 2009, to submit proofs of
claim to:

         O. Dubovich
         Insolvency Manager
         Office 6
         B. Orlov str. 3
         Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company on March 30, 2009.  The case is docketed under
Case No. 27/25B.

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         LLC Velikaya Novoselovka Regional Communal Farm
         Pervomayskaya Str. 34
         Donetsk
         Ukraine


* FITCH: Ukrainian Construction & Property Sector Liquidity Weak
----------------------------------------------------------------
Fitch Ratings says the Russian and Ukrainian construction &
property sector has the weakest liquidity position of all
corporate sectors covered by the agency in EMEA.  The liquidity
position of many RUCP companies worsened over 2008 and Q109 as end
markets rapidly weakened and bank financing withdrew from the
system.  This is a key conclusion of a report published entitled
'Liquidity Focus: Russia/Ukraine Construction and Property'.

"Liquidity is not likely to improve until regional real estate
markets reach a new price equilibrium, sustainable operational
cash flow generation returns, and debt capital markets re-open for
issuers in the Russian/Ukrainian real estate sector," said Julian
Crush, Senior Director in Fitch's EMEA Construction & Property
team.  "In the interim, Fitch expects to see is a series of high
profile debt restructurings in this sector, the outcomes of which
remain uncertain."

There are no long-term public bonds in the capital structures of
Fitch-rated RUCP issuers.  As a result of this, the sector's
refinancing risk is likely to remain high for several years with
the dominance of short-term domestic bank debt in corporate
funding structures, weak operating cash flows, the withdrawal of
foreign bank capital, and the low probability of success for any
attempts to raise enough new equity to make any real positive
impact on liquidity.  The aggregate total short-term debt of
Fitch's rated universe of RUCP issuers is approximately US$1.5
billion equivalent, accounting for 45% of total gross debt of
US$3.3 billion -- in a weak market context, this level represents
significant credit risk.

Across Fitch's universe of RUCP issuers, balance sheet cash is
low, committed undrawn facilities are largely absent (committed
undrawn facilities/short-term debt at only 15%, compared with 234%
for UK property investment companies) and, in all cases, these
issuers are free cash flow negative.  In summary, the total
sources of liquidity available to meet upcoming debt maturities
are highly constrained and hence default risk is significantly
heightened, as reflected in Fitch's ratings.

Fitch's entire rated universe in this sector falls into the 'weak'
categorization of relative liquidity analysis.  Liquidity scores
(sources of liquidity to uses of liquidity over a 12 month period)
are less than 1x (ranging from 0.03x to 0.7x), indicating an
unhealthy reliance on the decisions of domestic and international
banks to extend loan maturities and/or provide new financing to
deal with upcoming debt maturities.

Since September 2008, Fitch has undertaken nine separate rating
actions in this sector where worsening liquidity has been a
contributory factor.  Current rated coverage includes JSC Sistema-
Hals ('B', Rating Watch Evolving), OJSC LSR Group ('B-', Rating
Watch Negative), TMM Real Estate Development plc ('CC' Rating
Watch Negative) and Mirax Group Holding BV ('C', Rating Watch
Negative).


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


BRITISH AIRWAYS: To Explore All Options to Tackle Pension Deficit
-----------------------------------------------------------------
Alistair Osborne and Jamie Dunkley at Telegraph.co.uk report that
British Airways plc has not ruled out closing its final salary
pension scheme to 100,000 existing members, saying all options
would be reviewed at the completion of the current triennial
actuarial review.

According to the report, early conclusions from the review, which
began in April, are expected in the autumn.

"When the actuarial review is completed, we will have discussions
with the trustees.  We expect then to discuss with the trustees
how the schemes should be funded in the light of the valuation
findings.  We will explore all options as part of a funding
review," the report quoted a spokesman for BA as saying.

The spokesman, however, stressed that closing the scheme was not
under active consideration, the report notes.

The report discloses BA estimated at the time of its full-year
results last month that, on an accounting basis, its two final
salary schemes - the Airways Pension Scheme and the New Airways
Pension Scheme -- had a GBP2.9 billion deficit, up GBP1.2 billion
from previous estimates.  The airline, the report discloses, is
currently contributing around GBP320 million a year to the two
schemes.

                      About British Airways

British Airways plc -- http://www.britishairways.com-- is engaged
in the operation of international and domestic scheduled air
services for the carriage of passengers, freight and mail, and the
provision of ancillary services.  The Company's principal place of
business is Heathrow.  The Company also operates a worldwide air
cargo business with its scheduled passenger services.  The Company
operates international scheduled airline route networks,
comprising some 300 destinations at March 31, 2008.  During the
fiscal year ended March 31, 2008 (fiscal 2008), British Airways
carried more than 33 million passengers.  It carried 805,000 tons
of cargo to destinations in Europe, the Americas and worldwide.
At March 31, 2008, it had 245 aircraft in service.  In July 2008,
British Airways plc completed the purchase of French airline
L'Avion.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on June 1,
2009, Moody's lowered the Corporate Family and Probability of
Default Ratings of British Airways plc to Ba2; the senior
unsecured and subordinate ratings have been lowered to Ba3 and B1,
respectively.  Moody's said the outlook is negative.


BRITISH AIRWAYS: Traffic Down 6.5% in May 2009
----------------------------------------------
British Airways plc reported traffic and capacity statistics for
May 2009.

                 Summary of the Headline Figures

In May 2009, passenger capacity, measured in Available Seat
Kilometres, was 5.3 per cent below May 2008.  Traffic, measured in
Revenue Passenger Kilometres, fell by 6.5 per cent.  This resulted
in a passenger load factor decrease of 1.0 points versus last
year, to 75.1 per cent.  Traffic comprised a 17.2 per cent
decrease in premium traffic and a 4.2 per cent fall in non-premium
traffic.

The fall in capacity for the month is consistent with the 2.5 per
cent average reduction for the summer announced on May 22, with
the reductions weighted towards the months before and after the
summer peak.

Cargo, measured in Cargo Tonne Kilometres, fell by 9.5 per cent.

                         Market Conditions

Market conditions remain unchanged.


                 Strategic Developments

Nearly 3,400 letters from business and consumer groups, airport
officials and politicians from across the United States have been
sent to the US Department of Transportation supporting British
Airways' plans for a transatlantic joint business with American
Airlines and Iberia.

The airline is providing complimentary black cabs and executive
cars for premium customers traveling to and from Heathrow Terminal
5 from within a 100-mile radius of the airport.

British Airways' luxurious new lounge for premium passengers
opened at Heathrow Terminal 3.  The 300-seat Galleries Club Lounge
is for eligible customers traveling to Barcelona, Helsinki,
Lisbon, Madrid and Vienna.

The company continued to deliver outstanding operational
performance, with departure punctuality within 15 minutes at 87%
this month, a new record for May.

British Airways is launching flights this winter from Heathrow to
Las Vegas and Gatwick to the Maldives, Montego Bay, Punta Cana in
the Dominican Republic and Sharm El Sheikh.  Flights from Gatwick
to New York JFK will be suspended.

The airline flew the British and Irish Lions rugby team to South
Africa for their upcoming tour on a dedicated Boeing 747 renamed
"Air Force Scrum".

                  About British Airways

British Airways plc -- http://www.britishairways.com-- is engaged
in the operation of international and domestic scheduled air
services for the carriage of passengers, freight and mail, and the
provision of ancillary services.  The Company's principal place of
business is Heathrow.  The Company also operates a worldwide air
cargo business with its scheduled passenger services.  The Company
operates international scheduled airline route networks,
comprising some 300 destinations at March 31, 2008.  During the
fiscal year ended March 31, 2008 (fiscal 2008), British Airways
carried more than 33 million passengers.  It carried 805,000 tons
of cargo to destinations in Europe, the Americas and worldwide.
At March 31, 2008, it had 245 aircraft in service.  In July 2008,
British Airways plc completed the purchase of French airline
L'Avion.

                       *     *     *

As reported in the Troubled Company Reporter-Europe on June 1,
2009, Moody's lowered the Corporate Family and Probability of
Default Ratings of British Airways plc to Ba2; the senior
unsecured and subordinate ratings have been lowered to Ba3 and B1,
respectively.  Moody's said the outlook is negative.


BRITISH AIRWAYS: S&P Gives Negative Outlook; Affirms 'BB' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on U.K.-based British Airways PLC to negative from stable.
At the same time, Standard & Poor's affirmed its 'BB' long-term
corporate credit rating on BA and its 'BB' long-term rating on
BA's senior unsecured debt.  The recovery rating on the senior
unsecured debt is '4', indicating S&P's expectation of average
(30%-50%) recovery in the event of a payment default.

"The outlook revision reflects our view that the trading outlook
for BA's fiscal 2010 has deteriorated following BA's recent
withdrawal of previous guidance of an operating loss of
GBP150 million in the financial year ended March 31, 2010," said
Standard & Poor's credit analyst Eve Greb.  "We had anticipated BA
to target a level of operating performance in fiscal 2010
comparable with the previous year."

In fiscal 2009, BA reported an operating loss of GBP220 million,
including accrued cash severance costs of GBP78 million.  However,
on May 22, 2009, BA withdrew its profit guidance for fiscal 2010,
reflecting a lack of market visibility for demand.  In addition,
weak economic conditions, particularly a sharp fall in premium
traffic, have continued to weigh on financial performance in
recent months as the full effects of the liquidity squeeze on
world markets have taken hold.  Given the extremely uncertain
outlook, S&P believes that further deterioration for the year
ended March 31, 2010, could be possible, relative to previous
guidance.

The ratings on BA are constrained by S&P's view of the cyclicality
of the airline industry, volatile fuel costs, and profit
concentration at BA's transatlantic network.  On March 31, 2009,
BA had GBP3.8 billion of total on-balance-sheet debt.

The ratings are supported by S&P's view of BA's strong competitive
position as the main airline at London Heathrow Airport, extensive
route network, good profit track record, and adequate liquidity
base.  On March 31, 2009, BA had cash and cash equivalents of
about GBP1.4 billion.

The negative outlook reflects S&P's concerns that BA's financial
profile will come under pressure from a slowdown in passenger
traffic growth and continued falls in demand from high yielding
business travelers due to increasingly difficult trading
conditions.  The ratings are underpinned by the group's good
liquidity position, illustrated by cash reserves of more than
GBP1 billion, and sufficient committed facilities to fund mainline
aircraft deliveries until 2012.

"Failure to satisfactorily adapt the cost base to offset weakening
revenues, and/or a sustained level of cash outflows could lead to
pressure on the ratings if liquidity reserves weaken to less than
GBP1 billion or credit metrics deteriorate beyond our
expectations," said Ms. Greb.

S&P anticipates that BA will maintain FFO to adjusted debt of
about 10%-15%.  The outlook is unlikely to be revised to stable in
the short term, given S&P's expectation that trading conditions
will remain pressured by the uncertain global economic outlook.

S&P understands that BA is in negotiations over a potential merger
with Spanish airline Iberia.  Based on current information, S&P
will not factor this into S&P's rating or outlook.


CARPEO LTD: Sold Out of Business Administration
-----------------------------------------------
The Salisbury office of rescue, recovery and turnaround specialist
Begbies Traynor secured a sale of Swindon-based call center Carpeo
Ltd., saving nine jobs.

Carpeo was established in 2004 and has state-of-the art
communication systems at its Prospect Place offices in the Old
Town with the capacity for up to 60 staff.  The loss of a major
financial sector client and operational deficits on another
significant contract led to the appointment of Begbies Traynor
earlier this year when the decision to sell the business was made.

"Carpeo has good potential for growth moving out of the recession
and several expressions of interest in purchasing the business
were established at the outset.  However, a combination of time
and financial constraints meant that prospective purchasers were
not in a position to proceed," said Julie Palmer, partner at the
Salisbury office of Begbies Traynor.

"In the event, a group including the company's former directors
was able to finance the purchase and the business was sold out of
administration on May 11.  I'm pleased to report that the
continuing employment of all remaining Carpeo staff was secured as
part of the deal."


CHILTERN MILLS: Bought Out of Administration by Founder
-------------------------------------------------------
Chiltern Mills Ltd's joint administrators, David Wilson and Julian
Pitts, from the Leeds office of business rescue, recovery and
restructuring specialists Begbies Traynor, sold the Yorkshire
textiles retailer for an undisclosed sum.  The company was sold 10
days after filing its notice of intention to appoint
administrators, blaming the recession for its trading plight.

The pre-pack sale attracted three offers from seven interested
parties.  The one accepted by the joint administrators was from
Chiltern Mills founder Merlin Treymaine.

The Leeds-based business had been advertised for sale during the
10-day notice period and the administrators were formally
appointed to complete the sale to Mr. Treymaine who, with his wife
Jennifer and another family member, founded the company in 1993.

In the latest development in the colorful history of the business
Mr. Treymaine acquired four active outlets which are (staff
numbers in brackets): Crossgates (31); Redcar (17); Worksop (9);
Sutton, Lincs (8).  The future of the Meanwood outlet, which has
been closed for some weeks for refurbishment, is still under
consideration.

Outlets in Alfreton (Derbys) and Bridlington were closed earlier
this month with 11 and 15 staff respectively losing their jobs.

"It has been a satisfactory conclusion as far as the
administrators are concerned, achieving the best possible price
for the creditors," said Mr. Wilson.

Last year the business then secured investment from Mr. Treymaine
to secure its future following the administration of its parent
company Chiltern Mills Holdings Ltd.


CARPET TILE: Sold to Reolandt Lewis; 34 Jobs Saved
--------------------------------------------------
Administrators David Hill and Peter Dewey, from the Cardiff office
of business rescue, recovery and restructuring specialists Begbies
Traynor, achieved a sale of the Carpet Tile Factory after trading
it as a going concern for 11 weeks.

Roelandt Lewis Ltd bought the business, based at Blaina in Blaenau
Gwent, bought for an undisclosed sum, saving all 34 jobs.

The directors are Eric Roelandt, previously managing director of
the Carpet Tile Factory, and new investor Keith Lewis.

They are re-launching the operation with the help of grant
assistance from the Welsh Assembly.

The GBP5 million turnover Carpet Tile Factory primarily services
the business-to-business market, selling to wholesalers and
distributors.  Its products go into the likes of hotels, casinos
and offices.

It was formerly part of US conglomerate Tandus, trading as Tandus
Europe, before being acquired by management in 2007 and changing
its name.

But it ran out of cash in February after significant investment,
coupled with a switch of sales approach to target end users,
failed to produce the hoped-for growth.

Mr Hill said: "By maintaining customer support we have been able
to maximise the value of the company's assets for the creditors.

"I am very pleased a sale has been secured -- had the factory
closed it would have had a serious impact on the local community."

A spokesman for Roelandt Lewis Ltd said: "We are confident about
the fundamentals of the business and, with the workforce behind
us, believe we can take it forward.

"These are challenging times but we will be working with our
customers to ensure the company prospers."


DRACO PLC: Moody's Downgrades Rating on Class E Notes to 'Ba1'
--------------------------------------------------------------
Moody's Investors Service has downgraded these classes of Notes
issued by DRACO (ECLIPSE 2005-4) plc (amounts reflect initial
outstandings):

  -- GBP17,100,000 Class B Commercial Mortgage Backed Floating
     Rate Notes due 2017 downgraded to A1, previously on 20
     December 2005 assigned Aa2;

  -- GBP15,700,000 Class C Commercial Mortgage Backed Floating
     Rate Notes due 2017 downgraded to A3, previously on 20
     December 2005 assigned Aa3;

  -- GBP22,800,000 Class D Commercial Mortgage Backed Floating
     Rate Notes due 2017 downgraded to Baa2, previously on 20
     December 2005 assigned A2;

  -- GBP12,100,000 Class E Commercial Mortgage Backed Floating
     Rate Notes due 2017 downgraded to Ba1, previously on 20
     December 2005 assigned Baa1.

At the same time, Moody's has affirmed the Aaa rating of the Class
A Notes issued by DRACO (ECLIPSE 2005-4) plc.  Moody's does not
rate the Class F Notes.

The rating action concludes the review for possible downgrade that
was initiated for the Class B, Class C, Class D and the Class E
Notes on 8 April 2009 and takes Moody's updated central scenarios
into account, as described in Moody's Special Report "Moody's
Updates on Its Surveillance Approach for EMEA CMBS".

1) Transaction and Portfolio Overview

DRACO (ECLIPSE 2005-4) plc closed in December 2005 and represents
the securitization of initially five mortgage loans originated by
Barclays Bank PLC and secured by first-ranking legal mortgages
over initially 36 commercial properties located across the UK.
The properties were predominantly offices (92.3%) and located in
Greater London (81%).  The remaining collateral pool largely
consisted of residential/retail buildings located in Bristol.

Since closing, there have been almost no changes in the portfolio
composition.  One loan (the Clifton Portfolio Loan -- 6.3% of the
initial portfolio balance) has prepaid in full.  The remaining
loans are not equally contributing to the portfolio: the largest
loan (the Flintstone Portfolio Loan) represents 55.0% of the
current portfolio balance, while the smallest loan (the Herbert
House Loan) represents 3.6%.  The current loan Herfindahl index is
2.2, compared to 2.5 at closing.  Following the prepayment, the
remaining loans are secured by 13 properties which are still
predominantly office use (96.4%).  85.3% of the properties are
located in Greater London.

To date, the sequential payment trigger has not been breached.
The proceeds from prepayments and balloon repayments are allocated
to the Notes in a combination of fully sequential, modified pro-
rata and pro-rata basis, based on certain loan buckets.  The two
largest loans in the pool (92.4% of the pool balance) will be
allocated on a 50% sequential and 50% pro-rata basis.  Scheduled
amortization payments are allocated sequential.

As of the last interest payment date, all four loans in the
portfolio were current and none of the loans were on the
servicer's watchlist.

2) Rating Rationale

The downgrades of the Class B, Class C, Class D and Class E Notes
follow a detailed re-assessment of the loan and property
portfolio's credit risk.  Hereby, Moody's main focus was on
property value declines, term default risk, refinancing risk and
the anticipated work-out timing for potentially defaulting loans.
In its review, Moody's reassessed each loan in the transaction.

As outlined in more detail below, the rating action is mainly
driven by the most recent performance of the UK commercial
property markets and Moody's opinion about future property value
performance.  Driven by, in most cases, a higher default risk
assessment at the loan maturity dates, Moody's now anticipates
that a considerable portion of the portfolio will default over the
course of the transaction term.  Coupled with the negative impact
of significantly reduced property values, Moody's expects a low
amount of losses on the securitized portfolio.  Compared to its
initial assessment, Moody's loss expectation for the securitized
portfolio has increased considerably.  Those expected losses will
most likely, given the back-loaded default risk profile and the
anticipated work-out strategy for defaulted loans, only
crystallize towards the end of the transaction term.

The current subordination levels for Moody's rated classes (26.6%
for the Class A, 20.4% for the Class B, 14.8% for the Class C,
6.6% for the Class D and 2.3% for the Class E Notes), provide
protection against those expected losses.  However, the likelihood
of higher than expected losses on the portfolio has increased
substantially, which results in the rating action.

Since closing, only 6.3% of the initial loan portfolio prepaid and
the prepayment proceeds were allocated 100% pro-rata to the
transaction.  At the same time, the loan portfolio only provides
for limited scheduled principal repayment over time.  As a result,
unlike other large multi-borrower transactions ("EMEA CMBS conduit
deals"), the Class A, Class B, Class C, Class D and the Class E
Notes do not benefit from a meaningful increase in subordination
levels since closing.

In addition, the Class B, Class C, Class D and Class E Notes are
subordinated to the Class A Notes in the capital structure.  Due
to this additional leverage, the higher portfolio risk assessment
has a relatively bigger impact on the expected loss of these
Classes of Notes than on the expected loss of the Class A Notes.

3) Moody's Portfolio Analysis

Property Values.  Property values across the UK have declined
significantly until Q1 2009 and are expected to continue to
decline at least until 2010.  Moody's estimates that compared to
the underwriter's values at closing, the values of the properties
securing this transaction have declined by on aggregate 21% until
the beginning of 2009 (ranging from a 11% value decrease for the
Trafalgar Loan to a 29% decline for the Flintstone Portfolio
Loan).  Looking ahead, Moody's anticipates further declines until
2010, resulting in a 29% value decline compared to the U/W value
at closing (ranging from 19% decline for the Trafalgar Loan to a
37% decline for the Flintstone Portfolio Loan).

Based on this property value assessment, Moody's estimates that
the transaction's early-2009 weighted average securitized loan-to-
value ratio was 84% compared to the reported U/W LTV of 65%.  Due
to the further envisaged declines, the WA securitized LTV will
increase in Moody's opinion to 94% in 2010 and will only gradually
recover thereafter.  Based on Moody's anticipated trough values,
the LTVs for the securitized loans range between 69% (Pitch Loan)
and 118% (Herbert House Loan).  As one of the loans (Trafalgar
Loan) has additional debt in the form of a B-loan (amounting to
GBP25.0 million), based on estimated trough values, the overall WA
whole loan LTV is 101%.

Moody's has taken the anticipated property value development,
including a gradual recovery from 2011 onwards, into account when
analyzing the default risk at loan maturity and the loss given
default for each securitized loan.

Refinancing Risk.  The transaction has no exposure to loans
maturing in the short-term (2009 and 2010).  None of the loans has
an extension option, so that 4% of the current portfolio matures
in 2011, 41% in 2013 and 2014 and 55% in 2015.  However, as
Moody's expects property values in the UK to only slowly recover
from 2011 onwards, all loans will be still highly leveraged at
their respective maturity dates (also taking into account the B-
loan portion of the Trafalgar Loan).  Consequently, in Moody's
view, for all of the loans, the default risk at maturity has
increased substantially compared to the closing analysis.

Term Default Risk.  The occupational markets in the UK are
currently characterized by falling rents, increasing vacancy rates
and higher than average tenant default rates.  Taking into account
the lease profile and current vacancy rate of the respective
loans, the Flintstone Portfolio Loan could be in Moody's view
especially exposed to weakening occupational markets.  The balance
of the portfolio benefits from long-dated leases.  Based on the
current lease profile, Moody's has incorporated into its analysis
an allowance for higher than average tenant default rates for the
majority of the loans, in turn increasing the term default risk
assumption for the respective loans in the short- to mid-term.

Overall Default Risk. Based on its revised term and maturity
default risk assessment, for the securitized loans, Moody's
anticipates that a considerable portion of the portfolio will
default over the course of the transaction term.  With the
exception of the Herbert House Loan, where the single property is
let to a single sub-investment grade tenant, the default risk of
the loans is predominantly driven by refinancing risk.  In Moody's
view, the smallest loan in the portfolio, the Herbert House Loan,
has currently the highest default risk, while the second smallest
loan in the portfolio (Pitch Loan) has the lowest risk of
defaulting.

Concentration Risk.  The portfolio securitized in DRACO (ECLIPSE
2005-4) plc exhibits an above average concentration in terms of
property types (96.4% office) and property location (100% UK and
85.3% London).  In Moody's view, this limits the potential
benefits from different markets performing differently over time.

Work-Out Strategy.  In scenarios where a loan defaults, Moody's
current expectation is that the servicer will most likely not
pursue an immediate sale of the property in the depressed market
conditions.

Increased Portfolio Loss Exposure.  Taking into account the
increased default risk of the loans, the most recent performance
of the UK commercial property markets, Moody's opinion about
future property value performance and the most likely work-out
strategies for defaulted loans, Moody's anticipates a low amount
of losses on the securitized portfolio, which will, given the
back-loaded default risk profile and the anticipated work-out
strategy for defaulted loans, crystallize only towards the end of
the transaction term.  Compared to its initial assessment, Moody's
loss expectation for the securitized portfolio has increased
considerably.


KOP FOOTBALL: Auditors Raise Going Concern Doubt
------------------------------------------------
BBC News reports that auditors of Kop Football Holdings, the
parent company of Liverpool FC, warned that the need to refinance
loans by July 24 casts "significant doubt" on the future of the
group as a going concern.

BBC News discloses the parent company made a loss of GBP42.6
million in the year to August 2008, despite the GBP10.2 million
pre-tax profit reported by the football club in the same period.
According to BBC News, the loss was mainly due to the GBP36
million of interest payments the parent company had to make to
service the debt taken on to buy the club.  BBC News notes the
results for the parent company showed net debt on July 31, 2008 of
GBP300 million.

BBC News recalls US owners Tom Hicks and George Gillett bought
Liverpool FC in February 2007, promising to build a new stadium.


MARLAND LTD: Administrators Secure Sale; 25 Jobs Saved
------------------------------------------------------
Begbies Traynor sold out Marland Ltd, a Lincolnshire paper and
packaging businesses, for an undisclosed sum.

Based at Billingborough, near Grantham, Marland, a wholesaler
supplying to the retail sector across the UK and Europe, has
traded for more than 30 years.

But in March, despite counting a number of high street names among
its customers, the GBP4 million turnover business was forced to
call in partners Peter Blair and Richard Saville, from the
Nottingham office of corporate recovery specialists Begbies
Traynor, after suffering cash flow problems.

Mr. Blair said: "We have successfully saved 25 jobs and managed to
find a buyer before the value and saleability of the business
collapsed as customers may have been forced to source elsewhere.

"It was a struggle and at times increasingly complicated, but,
with the support of the staff and our advisers, a sale has been
agreed with a subsidiary of a plc in the industry, maximizing
proceeds and enabling the re-employment of some of the workforce
that had to be made redundant."

The company's directors had already started a cost cutting program
which involved releasing staff, and, on being called in, the
administrators were forced to lose a further 40.

That left a staff of just ten to carry on while a buyer was
sought.  Fifteen were re-engaged once the sale was completed.

Marland had been hit by decreasing margins, caught between rising
costs and an inability to pass on increases to customers.


METRIX FUNDING: S&P Puts Ratings Low-B Rated Notes on Neg. Watch
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its credit ratings on all rated notes issued by Metrix Funding No.
1 PLC.

These CreditWatch negative placements follow an increase in
portfolio scenario default rates for different rating scenarios.
In S&P's view, the SDRs now exceed the maximum levels that S&P's
original analysis considered to be consistent with the ratings
currently assigned to each class of notes.

In S&P's opinion, the increase in SDRs may be due to the recent
deterioration in the credit quality of the underlying portfolio,
as demonstrated by the lowering of some of the internal credit
ratings assigned to the assets.

S&P either publicly rates the reference entities securing the
portfolio or they have an internal rating assigned by HSBC Bank
PLC.  S&P has developed a mapping of HSBC's ratings against S&P's
own rating scale, which S&P uses for the purpose of this
transaction.  S&P understands that the mapping will be updated in
the next few months.

S&P will closely monitor the transaction's performance over the
coming months and perform further cash flow analysis, including a
review of the effect of the updated mapped ratings on the SDRs,
before resolving these CreditWatch placements in due course.

Metrix Funding No. 1 closed on Nov. 23, 2005, and is a
collateralized debt obligation of corporate leveraged loans
transaction.

                           Ratings List

                     Metrix Funding No. 1 PLC
        GBP682 Million, EUR863.47 Million, and US$1.24 Billion
                       Floating-Rate Notes

              Ratings Placed on CreditWatch Negative

                              Rating
                              ------
              Class    To                     From
              -----    --                     ----
              A1       AAA/Watch Neg          AAA
              A2       AAA/Watch Neg          AAA
              A3       AAA/Watch Neg          AAA
              B1       AA/Watch Neg           AA
              B2       AA/Watch Neg           AA
              B3       AA/Watch Neg           AA
              C1       A/Watch Neg            A
              C2       A/Watch Neg            A
              D1       BBB/Watch Neg          BBB
              D2       BBB/Watch Neg          BBB
              E1       BB/Watch Neg           BB
              E2       BB/Watch Neg           BB
              E3       BB/Watch Neg           BB


MITER PRESS: To Enter Into Liquidation
--------------------------------------
Mike Irving, the managing director of North London-based printer
Miter Press, has decided to liquidate the business, blaming the
current economic climate.

According to the report, a meeting of creditors has been called
for June 15, at which it is expected that Miter Press will be
placed into liquidation.  The company, the report discloses,
ceased production on May 29 with the remaining 14 staff made
redundant.

The report recalls in September Miter Press entered into a
Corporate Voluntary Arrangement with insolvency practitioner
Philip Roberts.  However, an anticipated upturn in the company's
fortunes has failed to emerge, the report notes.


SAVEKERS LTD: Sold to WTTR Holdings
-----------------------------------
Engineering group WTTR Holdings acquired the business and assets
of Savekers Limited, established by Thomas Saveker in 1903, from
administrators John Kelly and James Martin, of the Birmingham
office of business rescue, recovery and restructuring specialists
Begbies Traynor, for an undisclosed sum.

The GBP4 million firm's failure came as orders plummeted in the
wake of troubles in the construction, retail and leisure sectors,
all hit hard in the downturn.  A total of 20 jobs have been saved
out of a workforce of 60 at the time of the collapse but sadly the
Saveker ties have finally been severed as none of the family has
been retained in the ongoing business.

The business, which will remain at its current Perry Barr site,
primarily makes architectural metalwork and shopfittings.  Its
products can be seen all across Britain in offices, hotels, bars
and restaurants, shops, banks, building societies and post
offices.

Mr. Kelly and Mr. Martin said in a joint statement:  "We are
extremely pleased to have achieved a sale against the backdrop of
this fierce recession.

"The business has traded successfully for three months under
administration with support from customers and suppliers.

"Negotiations took place with a number of interested parties.
There is an improved order book and we believe there is now a
positive outlook for the company. "

David Blucher of WTTR Holdings said:"Savekers is a significant
addition to our group of businesses.  It has had a long and
distinguished history and I am confident that with hard work and
commitment from all the Savekers team we will have an exciting and
rewarding future. "

                     About Savekers

Savekers, one of Birmingham's oldest manufacturing companies had a
major input into Britain's war effort.  The company produced 75
different parts for Spitfire fighter planes, over 280 parts for
Lancaster bombers, parts for Sten guns and over a quarter of a
million stirrup pumps.

The factory survived the war, though not unscathed.  Two
incendiary bombs fell on the plating shop.  One went straight into
a vat and the other bounced off a roof beam and then into the vat,
both being extinguished by the vat's contents.

Another incident saw a high explosive bomb strike close to a
sunken air raid shelter in the factory yard but fail to go off.
The next night two more were heard to fall nearby and both
exploded; fortunately the area had been evacuated and no one was
hurt.

However, bowed metal window frames facing the crater remained as a
reminder until the building was demolished in 1998.


STAINCLIFFE HOTEL: Christie & Co Appointed to Sell Business
-----------------------------------------------------------
Chris Stevens and Ian Vickers, client partners at Vantis Business
Recovery Services (BRS), a division of Vantis, the UK accounting,
tax and business advisory group and appointed Joint Administrators
to Staincliffe Hotel, have appointed estate agency Christie & Co
to market the business for sale.

The Staincliffe Hotel, based in Seaton Carew, Hartlepool, entered
into administration on April 28, 2009.

Commenting on the case, Chris Stevens said: "The hotel entered
into administration following financial difficulties, however,
trading continues.  We are working closely with the management
team to try to achieve a sale to safeguard the business and its
staff."

Customers with confirmed hotel reservations should contact the
hotel.  The joint administrators will endeavor to honour any
deposits paid.

                    About Staincliffe Hotel

Staincliffe Hotel is a picturesque, pre-Victorian property in the
coastal village of Seaton Carew, approximately one mile from
Hartlepool town center.

The business features the award-winning 64-cover Ocean Restaurant,
a 40-cover lounge bar, two function rooms with total capacity for
up to 200, a 35-space car park, and garden areas to the front and
rear.

Originally built as a large private residence, the property was
converted into a hotel approximately 50 years ago.

Offers in the region of 875,000 are being sought for freehold
interest in the hotel.

David Lee, Director at Christie & Co, said: "We expect a
substantial amount of interest in this landmark hotel which has
superb views over the North-East coastline, with a number of
viewings having already taken place."

Any interested parties who wish to discuss this opportunity
further should call David Lee on 0191 222 1740.


STENNER LTD: Resumes Business Under New Ownership
-------------------------------------------------
Tiverton-based Stenner Ltd, the market-leading supplier of sawmill
equipment, has been bought out of administration by a consortium
led by previous Director Syd Mather.  The consortium also includes
previous Directors Fred Harding and Doug Richardson.  The
company's administrator Ian Walker, Partner of business recovery
and insolvency specialists Begbies Traynor, announced the
completion of the sale on May 15.

The new business will trade under the name of Stenner Ltd, and
will initially be based on the spares and service division of
Stenner, which continues to generate a consistent turnover and
which the new owners intend to develop further.  Production of
machines is effectively being mothballed until orders can be
generated; it was the lack of forward orders for equipment which
caused the company to be placed into administration in March.

This sale coincides with Ligna Hanover, the world fair for the
wood and forestry industries, which takes place in Germany next
week.  The new owners will be looking to generate business for the
new company at this fair.

In the short term, two members of staff will be taken on, but this
will increase given new orders.

Mr. Walker commented, "I am delighted that we have been able to
bring this Administration to a successful conclusion. It has saved
a historic engineering company, and forms the basis for the growth
of another successful business, especially when the economic
effects of the Recession begin to ease and the housing market
begins to show more signs of life."

Managing Director Syd Mather said, "All our customers can feel
confident that Stenner will now be able to continue looking after
both them and the equipment which they have been buying from us
over so many years.  We have the basis for building successfully
on the good relationship we have maintained with valued customers
over the last few difficult months, and were all looking forward
to Stenner Ltd once again occupying the place its place at the
leading edge of our industry."

                    About Stenner Ltd

Stenner Ltd has always operated from the same site at Lowman
Works, Blundells Road in Tiverton, Devon, and developed from a
general engineering company supplying the local market into a
market leader in the supply of sawmill equipment throughout the
world.  Renowned for its bandsaw equipment in particular, the
company has machinery operating in over 125 countries.


WYATT OF WINCHESTER: Administrator Sells Business; 30 Jobs Saved
----------------------------------------------------------------
Wyatt of Winchester and Wyatt Concorde, Wokingham's administrator
Antony Fanshawe of Begbies Traynor, negotiated the sale of the two
divisions and secured the jobs of 30 staff.

Mr. Fanshawe is a partner with Southampton-based Begbies Traynor,
the company handling the high profile administration of
Southampton Football Club.  He was called in on May 13 to the
family-owned Wyatt Motor Group, a network of Citroen garages with
dealerships in Winchester, Poole and Wokingham.

Founded by Colin Wyatt in 1991, the Group -- which had a turnover
of GBP22 million in 2008 -- suffered a major setback last summer
when the disposal of its Poole operation stalled within days of
completion.

National sales of new Citroen vehicles have dropped 30% since
May 2008.  The rapid decline in the economy and resultant impact
on consumer confidence towards the end of last year made Wyatt's
recovery virtually impossible.

Reductions in borrowing were achieved through the sale of premises
in Lymington earlier this year.  At the same time staff agreed to
a 10% pay cut in support of the business but the positive impact
of this saving was negated by a recent increase in interest rates
on the Group's borrowing.

On appointment Antony Fanshawe immediately set about finding a
buyer for all or part of the business.  Within days a disposal to
Freeborn Garages Ltd was secured for Wyatt of Winchester and Wyatt
Concorde in Wokingham, saving 30 jobs in total.

Freeborn, which already has Citroen dealerships in Southampton and
Godalming has acquired the two divisions to complement its
Hampshire and Surrey portfolio.

Says managing director Andrew Jones: "We had already decided at
Freeborn to concentrate on Citroen, a brand we have represented
for nearly 30 years.  When these two dealerships got into
difficulties it made sense to rescue them as they are a perfect
fit for our business and bring experienced staff and loyal
customers with them, both prime assets for any company.

"Wyatt Group customers in Winchester and Wokingham can be assured
that the staff they have dealt with in the past will be there in
the future to help them and that they now have the backing of a
major group to ensure this continues."

Antony Fanshawe commented: "Wyatt Motor Group was a victim of
these turbulent and unique economic times and the directors found
themselves in an incredibly difficult position.  They took a
number of very sensible steps over the past few months in a bid to
safeguard the Group's longevity and after 18 years in the motor
trade, the decision to call it a day was not taken lightly.

"I am extremely pleased to have achieved the sale of the bulk of
the business and, importantly, to have been able to save so many
jobs."

The Poole dealership has now closed.


* KPMG Survey Says UK Businesses Predict Recovery in 2011
---------------------------------------------------------
Half of global businesses expect a recovery next year, according
to research by KPMG International.  And taken collectively, over
eight out of ten respondents predicted recovery by 2011 as 11
percent said recovery would come in 2009, 51 percent said 2010 and
22 percent predicted 2011.

UK businesses were more pessimistic than the global sample as a
whole, predicting recovery in 2011, later than European peers such
as Germany, Italy and Spain, who all forecast 2010.

For half of the businesses surveyed, the economic downturn is
prompting a change in strategy, with changing customer buying
habits and cashflow pressures cited as the main reasons for this.
Businesses in the Asia Pacific region said they were more likely
to adopt radical new strategies in response to the downturn than
those in Europe and the UK.

In what KPMG believes to be one of the most comprehensive surveys
to date of global businesses' views on the recession, 852 senior
decision makers were interviewed, representing companies from 29
countries with revenues ranging from US$250 million, to over US$5
billion.

Sue Bonney, Head of Tax at KPMG Europe, commented: "Our research
reveals the truly seismic scale of the impact of the current
global recession on businesses around the world.  Although
commentators, encouraged by a stockmarket rally, are detecting
'green shoots', UK business does not expect a recovery until 2011.
This is in line with the pessimistic assessment published by the
Bank of England recently and the earlier findings of the IMF that
financial crises lead to long drawn out recessions.  What's clear
from our survey though is that many companies are facing a radical
overhaul of their corporate strategy to reflect the rapidly
changing world."

Key findings

* Half expect recovery in 2010 but UK more pessimistic, expecting
it in 2011

Globally, 11 percent of respondents expected recovery to come in
2009, 51 percent expected to see it in 2010 and 22 percent in
2011.  In the UK, the consensus was that it would be 2011 before
we would see any recovery.

* Recession prompts strategy changes but Asia Pacific business
more likely to adapt than European enterprises

Half the overall global sample said they planned a radical change
in strategy as a result of the recession.  However there were
marked contrasts between the various geographic regions.  Nearly
90 percent of businesses in Japan and 84 percent of businesses in
Singapore were planning radical changes to their business models
in the next decade. In India, the figure was 72 percent and in
China it was 66 percent.

In Europe the picture was different with far fewer companies
planning such radical changes.  The lowest percentage was among
companies in the Czech Republic and the Netherlands where only 20
percent were planning major changes to their businesses, rising to
25 percent in Hungary and 42 percent in the UK.  The highest
proportion in Europe was Ireland where 63 percent expected radical
change.

Sue Bonney commented: "The question clearly arising from these
results is why are European businesses so less likely to plan
radical changes than their peers in the Asia-Pacific region.  It
may be that European enterprises are more mature, more entrenched
and may perceive change to be too difficult.

"Indeed for some businesses such as manufacturers with complex,
bespoke plant, radical change may well be a major challenge.  The
results do, however, suggest that it could be the Asia-Pacific
businesses that make a virtue out of necessity and adapt to
survive in the post-recession world.  European enterprises run a
risk of being left behind."

* Cost control measures planned in all global businesses, but
especially among UK companies

Understandably in the current climate, cost control was a priority
in the short term.  More UK respondents had plans for specific
cost control measures than the global sample as a whole, with
almost twice as many UK companies planning to reduce headcounts
than their global peers.

88 percent of UK respondents said they planned to reduce
procurement and supply chain costs against 67 percent globally; 84
percent of UK respondents planned to optimize business processes
(by automation for example) against 64 percent globally; and 74
percent of UK respondents had headcount reductions planned against
just 41 percent globally.

Sue Bonney concluded: "While the UK shares the global view that
recovery is in sight in the medium term, our results suggest that
British businesses are more pessimistic than their global peers
and that more are braced for more pain to come in the form of cost
control measures to get through the downturn.  While short to
medium term survival is clearly of critical importance, adapting
to the changing commercial world is also crucial and UK businesses
will need to consider their longer-term strategies for the post-
recession environment."

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


* S&P Keeps Negative CreditWatch on 49 European CMBS Tranches
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it is keeping on
CreditWatch negative the 49 European commercial mortgage-backed
securitization tranches across these transactions:

  -- Diversity Funding No. 1 Ltd.;
  -- Portfolio Green German CMBS GmbH;
  -- Windermere VII CMBS PLC;
  -- Windermere VIII CMBS PLC;
  -- Windermere IX CMBS (Multifamily) S.A.;
  -- Windermere X CMBS Ltd.;
  -- Windermere XI CMBS PLC; and
  -- Windermere XIV CMBS Ltd.

The CreditWatch negative placements of the ratings on the notes
issued in these deals remain in place since there has been no
replacement of the Lehman entities as swap counterparty, facility
agent, or security agent.  These tranches have been on CreditWatch
negative since September 2008.  Given the period of time that has
elapsed since the insolvency related events occurred with respect
to Lehman, S&P currently anticipate that rating actions are likely
to be taken if the issues presented by these factors are not
resolved within the next quarter

Following the insolvency of Lehman Brothers and related entities
in September 2008, S&P placed or kept 84 classes of notes in 16
European CMBS deals on CreditWatch negative.

Lehman acted in various capacities in these transactions including
as derivatives counterparty, tenant, and security agent.  S&P
conducted a review of all affected transactions and published the
results of S&P's analysis in press releases in October and
December 2008.

Since then, S&P has removed from CreditWatch negative the ratings
on the notes issued by Canary Wharf Finance II PLC and Paris Prime
Commercial Real Estate FCC.

                     The Rating Actions

In European CMBS there is significant reliance on swap
arrangements at the issuer level, as most borrower loans are
fixed-rate obligations, whereas issuer obligations are floating
rate.  S&P's analysis following the insolvency of Lehman entities
assumed that payments under the swaps would not be made on the
next interest payment date and examined the liquidity drawing
implications.  S&P took a similar approach for those transactions
that have borrower-level swaps.  The rating actions taken in 2008
reflect the outcome of that analysis.  S&P understands that
transaction parties are currently actively pursuing the
replacement of Lehman entities with another swap counterparty
within the coming quarter in the following transactions:

  Transaction                      Date of most recent release
  -----------                      ---------------------------
  Portfolio GREEN German CMBS GmbH             Oct. 13, 2008
  Windermere VII CMBS PLC                     Sept. 17, 2008
  Windermere X CMBS Ltd.                        May 29, 2009
  Windermere XIV CMBS Ltd.                      May 13, 2009

On this basis, S&P currently expects the swaps to be replaced in
the next quarter.  If the swaps are not replaced S&P will likely
consider the implications of Lehman not being replaced over a
longer term and factor that into S&P's credit opinion.  If there
is no resolution, the ratings on these notes are likely to be
adversely affected.

S&P notes that Lehman entities have been replaced as swap
counterparty (variously) with HSBC Bank PLC and Credit Suisse in
the following transactions:

Transaction                            Date of most recent release
-----------                            ---------------------------
Windermere VIII CMBS PLC                     June 2, 2009
Windermere IX CMBS (Multifamily) S.A.        June 2, 2009
Windermere XI CMBS PLC                       May 13, 2009

Notwithstanding these replacements, S&P is not removing the
CreditWatch placements because Lehman acts as facility or security
agent in these transactions.  S&P understands from transaction
parties that arrangements to replace Lehman in these roles are
being discussed and may be progressing.  In the interim, the
servicer has reported experiencing delays in the day-to-day
operation of the loans, which it believes are connected with the
Lehman administration.  Moreover, S&P is uncertain as to the long-
term implications of the security agent being an insolvent entity
in administration.  S&P awaits more information about the
replacement of Lehman as agent, and the implications (both timing
and cost) of a change in the security agent for security
enforcement and eventual recoveries, if any.

Finally, the ratings on the notes issued by Diversity Funding No.
1 Ltd. will remain on CreditWatch negative given that Lehman is
holder of legal title in the mortgage security.

            Ratings Remaining on Creditwatch Negative

                   Diversity Funding No. 1 Ltd.
         GBP1,144.6 Million Variable Reference Rate Notes

                  Class            Rating
                  -----            ------
                  A                AAA/Watch Neg
                  B                AA/Watch Neg
                  C                A/Watch Neg
                  D                BBB/Watch Neg
                  E                BB/Watch Neg
                  F                B/Watch Neg

                Portfolio GREEN German CMBS GmbH
          EUR585.411 Million Secured Floating-Rate Notes

                  Class            Rating
                  -----            ------
                  A                AAA/Watch Neg
                  B                AA/Watch Neg
                  C                A/Watch Neg
                  D                BBB/Watch Neg
                  E                BB-/Watch Neg
                  F                B-/Watch Neg
                  G                B-/Watch Neg

                     Windermere VII CMBS PLC
  EUR782.25 Million Commercial Mortgage-Backed Floating-Rate Notes

                  Class            Rating
                  -----            ------
                  A2               AAA/Watch Neg
                  B                AA/Watch Neg
                  C                A/Watch Neg
                  D                BBB+/Watch Neg
                  E                BBB/Watch Neg
                  F                BB/Watch Neg
                  X                AAA/Watch Neg

                    Windermere VIII CMBS PLC
GBP1,037.79 Million Commercial Mortgage-Backed Floating-Rate Notes

                  Class            Rating
                  -----            ------
                  A2               AAA/Watch Neg
                  A3               AAA/Watch Neg
                  B                AA/Watch Neg
                  C                BBB-/Watch Neg
                  D                B/Watch Neg
                  E                CCC/Watch Neg

               Windermere IX CMBS (Multifamily) S.A.
EUR1,300.15 Million Commercial Mortgage-Backed Floating-Rate notes

                  Class            Rating
                  -----            ------
                  A1               AAA/Watch Neg
                  A2               AAA/Watch Neg
                  B                AA/Watch Neg
                  C                A/Watch Neg
                  X                AAA/Watch Neg

                     Windermere X CMBS Ltd.
  EUR1.497 Billion Commercial Mortgage-Backed Floating-Rate Notes

                  Class            Rating
                  -----            ------
                  A                AAA/Watch Neg
                  B                AAA/Watch Neg
                  C                AA/Watch Neg
                  D                A/Watch Neg
                  E                BBB/Watch Neg
                  F                BB/Watch Neg
                  X                AAA/Watch Neg

                     Windermere XI CMBS PLC
GBP707.767 Million Commercial Mortgage-Backed Floating-Rate Notes

                  Class            Rating
                  -----            ------
                  A                AAA/Watch Neg
                  B                AA/Watch Neg
                  C                A/Watch Neg
                  D                BBB/Watch Neg
                  E                B/Watch Neg

                     Windermere XIV CMBS Ltd.
   EUR1.12 Billion Commercial Mortgage-Backed Floating-Rate Notes

                  Class            Rating
                  -----            ------
                  A                AAA/Watch Neg
                  B                AA/Watch Neg
                  C                A/Watch Neg
                  D                BBB/Watch Neg
                  E                BB/Watch Neg
                  F                B/Watch Neg


* BOND PRICING: For the Week June 1 to June 5, 2009
---------------------------------------------------
Issuer                    Coupon   Maturity   Currency   Price
------                    ------   --------   --------   -----

FRANCE
------
Alcatel SA                4.750    01/01/11      EUR     14.93
Calyon                    6.000    06/18/47      EUR     37.24
Cap Gemini SA             2.500    01/01/10      EUR     51.39
Cap Gemini Soget          1.000    01/01/12      EUR     40.55
Cap Gemini Soget          3.500    01/01/14      EUR     37.36
Cie Fin Foncier           3.880    04/25/55      EUR     71.48
Ciments Francais          4.750    04/04/17      EUR     79.27
Club Mediterrane          4.380    11/01/10      EUR     46.55
CMA CGM                   5.500    05/16/12      EUR     57.75
CMA CGM                   5.500    05/16/12      EUR     57.75
CMA CGM SA                7.250    02/01/13      USD     48.75
CMA CGM SA                7.250    02/01/13      USD     48.75
Soc Air France            2.750    04/01/20      EUR     19.67

GERMANY
-------
Bayerische Lndbk         4.500     02/07/19      EUR     70.20
City of Kiev             8.630     07/15/11      USD     57.40
City of Kiev             8.630     07/15/11      USD     57.47

IRELAND
-------
Alfa Bank                 8.630    12/09/15      USD     64.08
Alfa Bank                 8.640    02/22/17      USD     62.38
Allied Irish Bks          7.880    07/05/23      GBP     73.35
Allied Irish Bks          5.250    03/10/25      GBP     53.91
Allied Irish Bks          5.630    11/29/30      GBP     48.99
Ardagh Glass              7.130    06/15/17      EUR     72.13
Ardagh Glass              7.130    06/15/17      EUR     73.58
Banesto Finance           6.120    11/07/37      EUR      6.12
Bank of Ireland           4.630    02/27/19      EUR     63.77
Bank of Ireland           9.250    09/07/20      GBP     83.62

ITALY
-----
Cartesio  S.r.l           6.020    03/07/33      USD     74.91
Cir SpA                   5.750    12/16/24      EUR     66.26

LUXEMBOURG
----------
Bank of Moscow            7.500    11/25/15      USD     75.03
Bank of Moscow            6.810    05/10/17      USD     63.46
Cirsa Capital             7.880    07/15/12      EUR     66.13
Cirsa Capital             7.880    07/15/12      EUR     70.13
Cirsa Fin Lux             8.750    05/15/14      EUR     61.00
Cirsa Fin Lux             8.750    05/15/14      EUR     60.88
Globus Capital            8.500    03/05/12      USD     49.43

NETHERLANDS
-----------
ABN Amro Bank NV          6.000    03/16/35      EUR     56.84
Aegon NV                  6.130    12/15/31      GBP     65.66
Air Berlin Finan          1.500    04/11/27      EUR     35.61
ALB Finance BV            9.000    11/22/10      USD     19.49
ALB Finance BV            9.750    02/14/11      GBP     17.48
ALB Finance BV            7.880    02/01/12      EUR     14.50
Alfa Bk Ukraine           9.750    12/22/09      USD     72.48
Astana Finance            9.000    11/16/11      USD     14.98
ATF Capital BV            9.250    02/21/14      USD     64.26
Bk Ned Gemeenten          0.500    06/27/18      CAD     69.59
Bk Ned Gemeenten          0.500    02/24/25      CAD     46.38
Cemex Fin Europe          4.750    03/05/14      EUR     62.45
Centercrdt Intl           8.630    01/30/14      USD     67.09
Clondalkin BV             8.000    03/15/14      EUR     44.08
Clondalkin BV             8.000    03/15/14      EUR     44.88
Hit Finance BV            4.880    10/27/21      EUR     71.88
JSC Bank Georgia          9.000    02/08/12      USD     64.84
Turanalem Fin BV          7.880    06/02/10      USD     24.50
Turanalem Fin BV          6.250    09/27/11      EUR     22.48
Turanalem Fin BV          7.750    04/25/13      USD     25.52
Turanalem Fin BV          8.000    03/24/14      USD     24.43
Turanalem Fin BV          8.500    02/10/15      USD     24.43
Turanalem Fin BV          8.250    01/22/37      USD     23.43

SPAIN
-----
Bancaja                   4.250    05/26/13      EUR     72.20
Bancaja                   4.380    02/14/17      EUR     72.13
Caja Madrid               4.130    03/24/36      EUR     75.92
Cedulas TDA A-6           4.250    04/10/31      EUR     71.61
Comun Auto Canar          3.900    11/30/35      EUR     69.67
Comun Auto Canar          4.200    10/25/36      EUR     73.24
Junta Andalucia           5.150    05/24/34      EUR     73.62

UNITED KINGDOM
--------------
Alfa-Bank CJSC            9.250    07/26/10      USD     65.44
Alfa-Bank CJSC           12.000    08/11/11      USD     77.49
Alliance&Leic Bld         5.250    03/06/23      GBP     72.58
Alliance&Leic Bld         5.880    08/14/31      GBP     72.61
Alpha Credit Grp          2.940    03/04/35      JPY     63.33
Amlin Plc                 6.500    12/19/26      GBP     69.74
Anglian Wat Fin           2.400    04/20/35      GBP     47.15
Annes Gate Ppty           5.660    06/30/31      GBP     72.89
Arsenal Sec               5.140    09/01/29      GBP     69.00
Ashtead Holdings          8.630    08/01/15      USD     71.13
Ashtead Holdings          8.630    08/01/15      USD     70.50
Aspire Defence            4.670    03/31/40      GBP     64.92
Aspire Defence            4.670    03/31/40      GBP     65.65
Aviva Plc                 5.750    11/14/21      EUR     66.21
Aviva Plc                 5.250    10/02/23      EUR     62.25
Aviva Plc                 6.880    05/22/38      EUR     64.45
Aviva Plc                 6.880    05/20/58      GBP     63.84
Barclays Bk Plc          11.650    05/20/10      USD     48.65
Barclays Bk Plc           5.750    09/14/26      GBP     72.86
Beazley Group             7.250    10/17/26      GBP     69.02
BL Super Finance          5.270    07/04/25      GBP     71.83
BL Super Finance          5.580    10/04/25      GBP     64.69
Bradford&Bin Bld          7.630    02/16/10      GBP     15.00
Bradford&Bin Bld          4.250    05/04/16      EUR     79.28
Bradford&Bin Bld          4.880    06/28/17      EUR     80.19
Bradford&Bin Bld          2.750    10/16/18      CHF     62.41
Bradford&Bin Bld          5.750    12/12/22      GBP     13.30
Bradford&Bin Bld          6.630    06/16/23      GBP     14.97
Bradford&Bin Bld          4.910    02/01/47      EUR     55.82
Brit Insurance            6.630    12/09/30      GBP     58.17
British Land Co           5.360    03/31/28      GBP     71.56
British Land Co           5.360    03/31/28      GBP     71.21
British Land Co           5.010    09/24/35      GBP     74.00
British Land Co           5.260    09/24/35      GBP     67.10
British Tel Plc           5.750    12/07/28      GBP     67.90
British Tel Plc           6.380    06/23/37      GBP     68.14
Britannia Bldg            5.750    12/02/24      GBP     62.41
Britannia Bldg            5.880    03/28/33      GBP     59.42
Brixton Plc               6.000    12/30/10      GBP     72.98
Brixton Plc               5.250    10/21/15      GBP     59.32
Brixton Plc               6.000    09/30/19      GBP     60.50
Broadgate Finance         4.850    04/05/31      GBP     72.66
Broadgate Finance         5.000    10/05/31      GBP     67.41
Broadgate Finance         5.100    04/05/33      GBP     57.44
Broadgate Finance         4.820    07/05/33      GBP     70.80
Capital Hospital          1.700    09/30/46      GBP     72.16
Cattles Plc               7.880    01/17/14      GBP      9.48
Cattles Plc               8.130    07/05/17      GBP      5.88
CGNU Plc                  6.130    11/16/26      GBP     64.04
Chelsea Building          5.880    03/07/19      GBP     49.98
City of Kyiv              8.250    11/26/12      USD     54.78
City of Kiev              8.000    11/06/15      USD     49.86
Clerical Med Fin          6.450    07/05/23      EUR     50.35
Prudential Bank           6.880    12/29/21      GBP     64.87

                            *********

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

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

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

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

                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


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