/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090617.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, June 17, 2009, Vol. 10, No. 118 Headlines A U S T R I A ALOIS SCHALK-CONSULTING GMBH: Claims Filing Deadline is July 6 EHGARTNER GMBH: Creditors Must File Claims by July 8 HAGN & KUBALA OEG: Claims Filing Deadline is July 8 HANS STEURER: Creditors Have Until July 10 to File Claims PARADIES IMMOBILIEN GMBH: Claims Filing Deadline is July 6 F R A N C E THOMSON SA: Creditors Extend Waiver to July 24 G E R M A N Y ARCANDOR AG: Investor Group Eyes Merger With Hertie ARCANDOR AG: Mulls Insolvency Loan Application ARCANDOR AG: Survey Says Majority of Germans Oppose State Aid GETRAG GROUP: US Unit has Liquidating Plan in Detroit Court HERTIE GMBH: Investor Group Eyes Merger With Arcandor's Karstadt QIMONDA AG: Voluntary Chapter 15 Case Summary UBS DEUTSCHLAND: Moody's Affirms 'D+' Bank Fin'l Strength Rating * GERMANY: Expects to Receive More State Aid Requests I R E L A N D ARDAGH GLASS: S&P Assigns 'BB' Rating on EUR300 Mil. Senior Notes I T A L Y BERICA 6: S&P Affirms Rating on Class D Notes at 'B+' K A Z A K H S T A N ASTANA LIFT: Creditors Must File Claims by June 26 KARATAL KURYLYS: Creditors Must File Claims by June 26 KAZKOMMERTS DPR: S&P Withdraws 'B+' Ratings on 9 Classes of Notes KAZTEMIRTRANS: Moody's Puts 'Ba1' Ratings on Review for Downgrade NAZARET VK: Creditors Must File Claims by June 26 SERPIN BKT: Creditors Must File Claims by June 26 SMP DIANA: Creditors Must File Claims by June 26 K Y R G Y Z S T A N NURDAN COMPANY: Creditors Must File Claims by July 10 N E T H E R L A N D S CARLSON WAGONLIT: S&P Junks Long-Term Corporate Credit Rating ECONCERN NV: Eneco Takes Over Core Operations After Bankruptcy N O R W A Y NEMI FORSIKRING: S&P Maintains 'BB' Insurer Fin'l Strength Rating P O R T U G A L PELICAN MORTGAGES: Fitch Assesses Impact of Reserve Fund Draw R O M A N I A * ROMANIA: Corporate Insolvencies Up 60.35% in January-May 2009 R U S S I A BEL-ENERGO-MASH CJSC: Creditors Must File Claims by June 29 DAGESTAN REGIONAL: Creditors Must File Claims by June 29 INDUSTRIAL AND CONSTRUCTION: Creditors Must File Claims by June 29 KURSK-ENERGO-MASH LLC: Creditors Must File Claims by June 29 RSHB CAPITAL: Fitch Assigns 'D' Individual Rating SEVERSTAL OAO: Sberbank Grants US$300 Mln Credit Facility ZAPAD-STROY LLC: Creditors Must File Claims by June 29 S P A I N CEMEX ESPANA: Fitch Puts 'B' IDR on Rating Watch Evolving CIRCULO 1: Fitch Affirms 'BB-' Rating on Class D Notes GAT ICO: Moody's Assigns 'P(C)' Ratings on Four Classes of Notes GRANADA 1: Fitch Affirms 'BB-' Rating on Class D Notes NAVARRA 1: Fitch Downgrades Rating on Class D Notes to 'B' SA NOSTRA 1: Fitch Affirms Rating on Class D Notes at 'BB-' VITAL 1: Fitch Affirms Rating on Class D Notes at 'BB-' * Moody's Downgrades BFSRs on Three Spanish Banks to 'E+' S W I T Z E R L A N D ALCON CREDIT: Creditors Must File Claims by June 26 ELBA GMBH: Creditors Have Until June 25 to File Claims H.U. DEUBELBEISS AG: Claims Filing Deadline is June 26 RIMMELE AG: Creditors Must File Claims by June 26 SCHWANSTEIN AG: Claims Filing Deadline is June 25 TIARA FLEURS: Claims Filing Deadline is June 25 U K R A I N E AGRICULTURAL MEGA: Creditors Must File Claims by June 24 AGROPRODINVEST-R LLC: Creditors Must File Claims by June 24 ERA OJSC: Creditors Must File Claims by June 24 FREGAT LLC: Creditors Must File Claims by June 24 METAL-INVEST LLC: Creditors Must File Claims by June 24 TISA-FLOR LLC: Creditors Must File Claims by June 24 PKV TRADE: Creditors Must File Claims by June 24 UKRPOLIMPORT LLC: Creditors Must File Claims by June 24 U N I T E D K I N G D O M ARDANA PLC: Administrator Close to Securing Sale CARLISLE CASTLE: S&P Assigns 'BB' Rating on Class D Notes DAIRY FARMERS: Closes Blaydon Dairy; 290 Jobs Affected LDV: John Caudwell Eyes Takeover Bid LLOYDS BANKING: Set to Write Off GBP450 Mln Admiral Investment PREMIUM BARS: Gets GBP48 Mln Takeover Bid From Reuben Brothers PUNCH TAVERNS: Mulls GBP350 Million Placing to Ease Debt Burden SIGNLEASE LTD: Creditors Approve CVA Proposal WEST BROMWICH: Moody's Changes Outlook on 'E+' BFSR to Stable ********* ============= A U S T R I A ============= ALOIS SCHALK-CONSULTING GMBH: Claims Filing Deadline is July 6 -------------------------------------------------------------- Creditors of Alois Schalk-Consulting GmbH have until July 6, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 16, 2009 at 9:00 a.m. For further information, contact the company's administrator: Dr. Guenther Viehboeck Bahnhofsplatz 1a/Stg.1/Top 5 2340 Moedling Austria Tel: 02236/22 050 Fax: 02236/49239 E-mail: office@viehboeck.at EHGARTNER GMBH: Creditors Must File Claims by July 8 ---------------------------------------------------- Creditors of Ehgartner GmbH have until July 8, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 22, 2009 at 11:15 a.m., at: Land Court of Leoben Hall IV First Floor Leoben Austria For further information, contact the company's administrator: Kreissl & Pichler& Walther Rechtsanwalte GmbH Rathausplatz 4 8940 Liezen Austria Tel: 03612-22997 Fax: 03612-22997-83 E-mail: mag. karl.pichler@hkp1.at HAGN & KUBALA OEG: Claims Filing Deadline is July 8 --------------------------------------------------- Creditors of Hagn & Kubala OEG have until July 8, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 22, 2009 at 10.15 a.m. For further information, contact the company's administrator: Dr. Stefan Langer Oelzeltgasse 4 1030 Vienna Austria Tel: 712 63 02, 713 61 92 Fax: 713 61 92 22 E-mail: kanzlei@kosesnik-langer.at HANS STEURER: Creditors Have Until July 10 to File Claims --------------------------------------------------------- Hans Steurer GMBH will convene a meeting of its creditors at 09.00 a.m. on July 24, 2009, at Land Court of Linz, hall 522/5th floor. Creditors of Hans Steurer GmbH have until July 10, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled July 24, 2009 at 9:00 a.m. For further information, contact the company's administrator: Dr. iur. LL.M. Norbert Mooseder Stelzhamerstrasse 1 4400 Steyr Austria Tel: +43 7252/42 4 24 Fax: +43 7252/42 4 24 -24 E-mail: lawfirm@gltp.at PARADIES IMMOBILIEN GMBH: Claims Filing Deadline is July 6 ---------------------------------------------------------- Creditors of Paradies Immobilien GmbH have until July 6, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for July 16, 2009 at 9:45 a.m. For further information, contact the company's administrator: Dr. Romana Weber-Wilfert Bachgasse 10 2340 Moedling Austria Tel: 02236/869 291 Fax: 02236/869580 E-mail: moedling@snwlaw.at =========== F R A N C E =========== THOMSON SA: Creditors Extend Waiver to July 24 ---------------------------------------------- Thomson SA provides an update on its balance sheet restructuring. During the past six weeks, in-depth and constructive discussions have taken place with Thomson's private placement noteholders and lenders under the syndicated credit facility. Following these discussions, the private placement noteholders and lenders under the syndicated credit facility are now considering the key terms of a restructuring proposal by Thomson. The proposal contemplates a significant reduction of the group's debt through a conversion of debt into equity, as well as the ability for existing shareholders to participate in the recapitalization of the company. The terms of the proposal will not be made public at this stage. Consequently, Thomson and its senior creditors have decided to extend the waivers in place to July 24, 2009. On April 30, 2009, the Troubled Company Reporter-Europe, citing Reuters, reported that the company obtained a waiver from its main creditors until June 16 to restructure its debt. Citing Frederic Rose, Thomson's chief executive, Reuters disclosed the group's senior creditors include some 20 banks and 30 bondholders, who could have demanded the reimbursement of some EUR2.9 billion of gross debt from April 30 following the covenant breach. About Thomson SA France-based Thomson SA -- http://www.thomson.net/-- provides technology, services, and systems to Media & Entertainment (M&E) clients, including content creators, content distributors and broadcasters. It has three principal operating divisions: Services, Systems (previously Systems & Equipment) and Technology. The remaining activities are regrouped in two additional segments: Other and Corporate. The Services Division offers end-to-end management of video-related services for its customers in the M&E industries. Systems division plays a role in supplying hardware and software technology for the M&E industries in the areas of production, delivery, management, transmission, and access. Technology division includes activities, such as corporate research; Silicon Solutions: Integrated Circuit design and tuners, and Software & Technology Solutions: video and audio security solutions, and other technologies. In December 2008, the Company sold its digital film equipment product line. * * * As reported in the Troubled Company Reporter-Europe on May 21, 2009, Moody's Investors Service changed to Ca/LD from Ca the Probability of Default Rating for Thomson S.A. The outlook on the ratings remains negative. This rating action follows Thomson's failure to repay US$92.5 million private placements due on May 18, 2009 which in Moody's view constitutes a payment default. This non-payment is in line with the company's announcement made on April 28, 2009 stating that it had obtained waivers from senior creditors until June 16 to continue discussions on its balance sheet restructuring and that it had agreed with its creditors to defer the required pay down of its debt during the waiver period. ============= G E R M A N Y ============= ARCANDOR AG: Investor Group Eyes Merger With Hertie --------------------------------------------------- Marilyn Gerlach at Reuters reports that according to German daily Frankfurter Allgemeine Zeitung, a group of investors is interested in merging Hertie and parts of Arcandor's department store chain Karstadt. Reuters relates, citing the group's spokesman Rolf Schuchardt, that Frankfurter Allgemeine Zeitung said the group comprises five retail managers and a Chinese financial partner. According to Reuters, a spokesman for Deutsche Bank confirmed it had been asked to organize a meeting to discuss the merger concept with U.K. financial investor Dawnay Day, owner of Hertie, and Hertie's insolvency administrator. Metro On June 12, 2009, the Troubled Company Reporter-Europe, citing BBC News, reported that Metro AG, Germany's biggest retail group, is interested in acquiring the assets of Arcandor. According to BBC News, Metro plans to merge its Kaufhof chain of stores with Arcandor's Karstadt and retain about 160 of the combined 200 department stores. Bloomberg News said Metro wants to list the combined company on the stock market. Bankruptcy On June 11, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. Bloomberg News related the district court in Arcandor's home town of Essen named lawyer Klaus Hubert Goerg as insolvency administrator. German Chancellor Angela Merkel, as cited by Bloomberg News, said Arcandor's collapse was "unavoidable" after investors and banks offered too little to save the retailer. Bloomberg News disclosed Euro am Sonntag said that the retailer won concessions worth about EUR750 million after overnight talks with suppliers, creditors, landlords and shareholders. BBC News reported Arcandor said its bankruptcy filing covered German retailer Karstadt and its mail-order businesses. However, it added Thomas Cook would "remain unaffected", BBC News stated. Bloomberg News recalled the government on June 8 rejected two applications for help by Arcandor, which employs 43,000 people. According to Bloomberg News, the retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state- owned bank, Bloomberg News noted. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. ARCANDOR AG: Mulls Insolvency Loan Application ---------------------------------------------- Eva Kuehnen at Reuters reports that Arcandor AG will decide soon whether it will apply for an insolvency loan. Reuter relates a spokesman for Arcandor said the company was in the process of making a decision on a potential insolvency loan, the size and the banks. The German Economy Ministry had said on Saturday that Arcandor could still be granted aid from the state, Reuters discloses. A spokesman for the ministry, as cited by Reuters, said the retailer could still apply for a so-called "Massekredit", a special kind of loan that can be granted once insolvency proceedings have begun. Bankruptcy On June 11, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. Bloomberg News related the district court in Arcandor's home town of Essen named lawyer Klaus Hubert Goerg as insolvency administrator. German Chancellor Angela Merkel, as cited by Bloomberg News, said Arcandor's collapse was "unavoidable" after investors and banks offered too little to save the retailer. Bloomberg News disclosed Euro am Sonntag said that the retailer won concessions worth about EUR750 million after overnight talks with suppliers, creditors, landlords and shareholders. BBC News reported Arcandor said its bankruptcy filing covered German retailer Karstadt and its mail-order businesses. However, it added Thomas Cook would "remain unaffected", BBC News stated. Bloomberg News recalled the government on June 8 rejected two applications for help by Arcandor, which employs 43,000 people. According to Bloomberg News, the retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state- owned bank, Bloomberg News noted. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. ARCANDOR AG: Survey Says Majority of Germans Oppose State Aid ------------------------------------------------------------- Patrick Donahue at Bloomberg News reports that according to an FG Wahlen survey for ZDF television released Friday, a majority of Germans oppose state aid for Arcandor AG. According Bloomberg News, 77 percent of respondents said they oppose assistance for Arcandor, while just 18 percent of the 1,343 polled said they backed state aid. Bloomberg News relates Chancellor Angela Merkel signaled that her government's rescue of General Motors Corp.'s Opel unit won't be repeated. Opel "was a very special situation that, in my view, won't happen a second time," Bloomberg News quoted Ms. Merkel as saying in an interview on Thursday on ZDF television. "At least, I don't see such a case." Bankruptcy On June 11, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. Bloomberg News related the district court in Arcandor's home town of Essen named lawyer Klaus Hubert Goerg as insolvency administrator. German Chancellor Angela Merkel, as cited by Bloomberg News, said Arcandor's collapse was "unavoidable" after investors and banks offered too little to save the retailer. Bloomberg News disclosed Euro am Sonntag said that the retailer won concessions worth about EUR750 million after overnight talks with suppliers, creditors, landlords and shareholders. BBC News reported Arcandor said its bankruptcy filing covered German retailer Karstadt and its mail-order businesses. However, it added Thomas Cook would "remain unaffected", BBC News stated. Bloomberg News recalled the government on June 8 rejected two applications for help by Arcandor, which employs 43,000 people. According to Bloomberg News, the retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state- owned bank, Bloomberg News noted. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. GETRAG GROUP: US Unit has Liquidating Plan in Detroit Court ---------------------------------------------------------- According to Bloomberg's Bill Rochelle, the U.S. Bankruptcy Court for the Eastern District of Michigan will convene a hearing on August 4 to consider confirmation of the liquidating Chapter 11 plan and approval for the explanatory disclosure statement filed by the U.S. unit of Getrag Group. According to the report, the disclosure statement explaining the Liquidating Plan filed by Getrag Transmission Manufacturing LLC says unsecured creditors don't stand to see anything aside from recovery from lawsuits. Getrag listed unsecured creditors with claims totaling US$483 million. Getrag Transmission asserts claims against Chrysler, but any recovery from the automaker is doubtful, Bill Rochelle says. Getrag sued Chrysler LLC in a dispute over a dual clutch transmission plant the two companies were building in Tipton, Indiana. Prepetition, Getrag Transmission and Chrysler agreed to the construction of a US$530 million dual clutch transmission plant in Tipton County, Indiana. According to Bloomberg, Chrysler agreed to reimburse Getrag US$305 million and agreed that the plant would be sole source for the product until 2020. Chrysler, however, later sued Getrag Transmission in the state court of Michigan, claiming that the Company couldn't secure the needed financing, and the Company abandoned the project before it filed for bankruptcy. Getrag, in response, filed for Chapter 11 and sued Chrysler in bankruptcy court. The bankruptcy court has been automatically stayed by Chrysler's own Chapter 11 filing. The Getrag Transmission has a pending agreement to sell its real property to the secured lenders in exchange for a US$13 million reduction in debt. About GETRAG Group Based in Untergruppenbach, Germany, GETRAG Corporate Group is an independent automotive transmission manufacturer with 12,400 employees at 23 locations worldwide. GETRAG Transmission Manufacturing LLC is a unit of Germany's Getrag Group. Headquartered in Sterling Heights, Michigan, GETRAG Transmission -- http://www.getrag.de/-- designs and makes dual clutch transmission its facility in Tipton, Indiana. The company filed for Chapter 11 relief on November 17, 2008 (Bankr. E.D. Mich. Case No. 08-68112). Jayson Ruff, Esq., Jeffrey S. Grasl, Esq., and Stephen M. Gross, Esq., at McDonald Hopkins, represent the Debtor as counsel. In its schedules, the Debtor listed total assets of US$690,071,505 and total debts of US$582,208,616. HERTIE GMBH: Investor Group Eyes Merger With Arcandor's Karstadt ---------------------------------------------------------------- Marilyn Gerlach at Reuters reports that according to German daily Frankfurter Allgemeine Zeitung, a group of investors is interested in merging Hertie and parts of Arcandor's department store chain Karstadt. Reuters relates, citing the group's spokesman Rolf Schuchardt, that Frankfurter Allgemeine Zeitung said the group comprises five retail managers and a Chinese financial partner. According to Reuters, a spokesman for Deutsche Bank confirmed it had been asked by mayors of the cities where Hertie stores are located to organize a meeting to discuss the merger concept with U.K. financial investor Dawnay Day, owner of Hertie, and Hertie's insolvency administrator. As reported in the Troubled Company Reporter-Europe on Aug. 6, 2008, Hertie filed for commencement of insolvency proceedings at the District Court of Essen on July 31, 2008. The court appointed Biner Baehr of White & Case LLP as preliminary insolvency administrator for Hertie. According to Bloomberg News, Hertie filed for insolvency after its debt-restructuring talks failed. Based in Essen, Germany, Hertie GmbH -- http://www.hertie.de/-- operates 73 department stores and employs 4,100 people. Hertie posted EUR30 million in losses on EUR540 million in sales for financial year 2007. QIMONDA AG: Voluntary Chapter 15 Case Summary --------------------------------------------- Chapter 15 Petitioner: Michael Jaffe as insolvency administrator Chapter 15 Debtor: Qimonda AG Gustav-Heinermann-Ring 212, 81739 Munich, GE 22314 Chapter 15 Case No.: 09-14766 Type of Business: The Debtor sells memory products for the channel and retail markets. Its customers included Hewlett-Packard and Dell, with more than three- quarters of the Debtor's sales in the Asia/Pacific and North American markets. Infineon Technologies owns around 77% of the Debtor. As reported in the Troubled Company Reporter on Feb. 25, 2009, Qimonda Richmond LLC and Qimonda North America Corp. sought Chapter 11 protection from their creditors in the U.S. Bankruptcy Court for the District of Delaware (Lead Case No. 09-10589). Richards Layton & Finger PA represents these units. See http://www.qimonda.com/ Chapter 15 Petition Date: June 15, 2009 Court: Eastern District of Virginia (Alexandria) Chapter 15 Petitioner's Counsel: Jeff A. Showalter, Esq. Morrison & Foerster, LLP 2000 Pennsylvania Ave., N.W. Suite 6000 Washington, DC 20006-1888 Tel: (202) 887-1500 Fax: (202) 887-0763 Estimated Assets: More than US$1 billion Estimated Debts: More than US$1 billion UBS DEUTSCHLAND: Moody's Affirms 'D+' Bank Fin'l Strength Rating ---------------------------------------------------------------- Moody's Investors Service placed the long-term debt and deposit ratings of UBS Deutschland AG (A1) on review for downgrade. The bank financial strength rating for UBS Deutschland AG of D+ translating into a baseline credit assessment of Baa3 and the Prime-1 rating on the short-term obligations were affirmed. The rating action follows Moody's review for downgrade of UBS AG's long term and deposit ratings of Aa2 and its BFSR of B-, UBS Deutschland AG's immediate parent bank with a 100% controlling stake. Moody's assessment of a high probability of support from the parent to its subsidiary in the event of need means that UBS Deutschland AG's deposit ratings incorporate 5 notches uplift from its Baa3 baseline credit assessment (which maps directly from its D+ BFSR). Moody's previous rating action on UBS Deutschland was on July 4, 2008, when the bank's long-term debt and deposit ratings were downgraded to A1 from Aa3. Based in Frankfurt, Germany, UBS Deutschland AG reported total assets of EUR39.7 billion at the end of the year 2008. * GERMANY: Expects to Receive More State Aid Requests ----------------------------------------------------- Dave Graham at Reuters reports that according to German Economy Minister Karl-Theodor zu Guttenberg the country is likely to receive more applications for state aid in coming months following requests from carmaker Opel and retailer Arcandor. Reuters relates that in an interview with German business daily Handelsblatt, Mr. Guttenberg said "In this crisis, more firms will become insolvent or will disappear from the market." According to Reuters, so far there had been more than 1,300 applications for aid Mr. Guttenberg said, noting that of EUR115 billion (US$161.8 billion) in government fund set up to help troubled firms, only EUR5 billion had so far been taken up so far. ============= I R E L A N D ============= ARDAGH GLASS: S&P Assigns 'BB' Rating on EUR300 Mil. Senior Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'BB' issue rating to the proposed EUR300 million senior secured notes due 2016, issued by Ardagh Glass Finance PLC. Ardagh Glass Finance is the finance subsidiary of Ireland-based glass producer Ardagh Glass Group PLC (B+/Stable/--). The bonds are guaranteed by Ardagh Glass Holdings Ltd. The recovery rating on these bonds is '1', indicating S&P's expectation of very high (90%-100%) recovery in the event of a payment default. While S&P believes that some value may flow to these instruments in the event of a payment default, S&P does not expect this to exceed 10%, under S&P's assumptions. The issue rating on the proposed bonds is two notches above the corporate credit rating on Ardagh Glass Group, and the bonds rank equally with the group's existing bank debt. The proposed notes have a reasonably comprehensive security package. Furthermore, S&P expects the proposed notes to benefit from security of more than 75% of the group's assets and to have share pledge security and guarantees from the parent company and various subsidiaries. The revolving credit facilities, other senior secured term debt, and senior secured notes all have first- ranking security and rank equally. The proposed notes are being issued in order to repay the group's EUR150 million of senior bank debt. Ardagh Glass plans to use the remainder to repay the existing drawings under its RCF. Ardagh Glass' senior bonds are unsecured and comprise senior subordinated subsidiary guarantees and unsecured parent guarantees. The group's 10.75% EUR125 million payment-in-kind subordinated notes due 2015 are unsecured, not guaranteed, and are also structurally subordinated to other facilities. Recovery Analysis S&P has revised itss valuation methodology to a full going-concern basis from part going-concern, part liquidation valuation. However, S&P believes that some inefficient plants could be closed down or sold on a stand-alone basis prior to a default. In S&P's view, the business has been able to achieve substantial synergies following the acquisition of Rexam's glass business in June 2007 and is now in a better competitive position than previously. Therefore, S&P believes that in the case of a hypothetical default, any potential buyer would be interested in purchasing the business as a whole and retaining its customers. The rating on the new notes is based on preliminary information and is subject to S&P's satisfactory review of the final documentation. In the event of any changes to the amount or terms of the bond, the recovery and issue ratings will be subject to further review. For full details of S&P's recovery analysis, see article titled "Ardagh Glass Group PLC's Recovery Rating Profile," to be published shortly on RatingsDirect. Ratings List New Rating Ardagh Glass Finance PLC Senior Secured Debt* BB Recovery Rating 1 Ratings Affirmed Ardagh Glass Finance PLC Senior Unsecured Debt* B- Recovery Rating 6 Ardagh Glass Group PLC Subordinated Debt B- Recovery Rating 6 * Guaranteed by Ardagh Glass Holdings Ltd. ========= I T A L Y ========= BERICA 6: S&P Affirms Rating on Class D Notes at 'B+' ----------------------------------------------------- Standard & Poor's Ratings Services affirmed all the ratings on the notes issued by Berica Residential MBS 1 S.r.l., Berica 5 Residential MBS S.r.l., and Berica 6 Residential MBS S.r.l. The affirmations reflect the current portfolio characteristics, the performance recorded so far, and the conservative structural mechanisms in place. On the most recent interest payment date, all three transactions showed a reduction in absolute arrears. Berica 5 Residential MBS drew under its cash reserve for the first time, and it is now EUR8.2 million, 20% lower than its target level of EUR10.3 million. After nine consecutive draws, Berica 6 Residential MBS has partially replenished its cash reserve by EUR1.6 million to EUR5.3 million (71.3% lower than its target amount of EUR18.5 million, and 51.5% lower than the closing level of EUR11.4 million). These drawings were all made to cover defaulted and delinquent loans. All of the Berica transactions feature a structural mechanism that traps excess spread to cover 100% of the balance of defaulted mortgages, and 15% of the balance of delinquent loans. As a result of excess spread trapping and the drawings under the cash reserve, the balance of the notes in all the transactions is now lower than the collateral balance, and as such, all three deals are overcollateralized. Following the deleveraging of each transaction there has been an improvement in several factors, i.e., the weighted-average loan- to-value ratio, and the available credit enhancement. According to the most recent investor reports, the pool factor and WALTV ratios are: -- Berica Residential MBS 1: A pool factor of 48% and WALTV ratio of 49%, down from 67%; -- Berica 5 Residential MBS: A pool factor of 62% and WALTV ratio of 57%, down from 67%; and -- Berica 6 Residential MBS: A pool factor of 70% and WALTV ratio of 61%, down from 64%. S&P considers it likely that the collateral data will benefit further from the current low interest rate environment over the next few quarters, considering that the three portfolios are mainly backed by floating-rate mortgages and modular loans. Ratings List Ratings Affirmed Berica Residential MBS 1 S.r.l. EUR588.48 Million Residential Backed Floating-Rate Notes Class Rating ----- ------ A AAA B A C BBB Berica 5 Residential MBS S.r.l. EUR675.88 million Residential Backed Floating-Rate Notes Class Rating ----- ------ A AAA B A C BBB Berica 6 Residential MBS S.r.l. EUR1,440.81 million Residential Backed Floating-Rate Notes Class Rating ----- ------ A2 AAA B A+ C BBB+ D B+ =================== K A Z A K H S T A N =================== ASTANA LIFT: Creditors Must File Claims by June 26 -------------------------------------------------- Creditors of LLP Astana Lift have until June 26, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on April 9, 2009. KARATAL KURYLYS: Creditors Must File Claims by June 26 ------------------------------------------------------ Creditors of LLP Karatal Kurylys have until June 26, 2009, to submit proofs of claim to: Tereshkov Str. 10 Otenai Taldykorgan Almaty Kazakhstan Tel: 8 (7282) 22-90-39, 8 701 362 50-46 The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on Nov. 25, 2008, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan KAZKOMMERTS DPR: S&P Withdraws 'B+' Ratings on 9 Classes of Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on all of the note series issued through Kazkommerts DPR Co., Kazkommertsbank JSC's future flow diversified payment rights securitization. These rating actions reflect the prepayment of the notes' obligations in full before their maturity date, as indicated in the documentation that Standard & Poor's received from Bank of New York Mellon (the trustee). The program's debt service coverage ratio had weakened as a result of the global economic downturn's negative impact on the price of and demand for Kazakhstan's mineral- or petroleum-based exports. The DPR program's historically high industry and customer concentrations significantly reduced the program's DPR flows and DSCR. Ratings Withdrawn Kazkommerts DPR Co. Rating Amount (mil. US$) ------ ----------------- Series To From To From ------ -- ---- -- ---- 2005-A NR A 0.0 200.0 2005-A* NR B+ 2005-B NR B+ 0.0 50.0 2006-A NR B+ 0.0 100.0 2006-A* NR B+ 2006-B NR A 0.0 100.0 2006-B* NR B+ 2007-A NR B+ 0.0 150.0 2007-A* NR B+ 2007-B NR BBB 0.0 250.0 2007-B* NR B+ 2007-C NR AAA 0.0 100.0 2007-C* NR B+ * S&P assessed the underlying rating without the benefit of an insurance policy. NR � Not rated. KAZTEMIRTRANS: Moody's Puts 'Ba1' Ratings on Review for Downgrade ----------------------------------------------------------------- Moody's Investors Service placed the ratings of eleven corporate government-owned issuers on review for possible downgrade. The review was prompted by concerns, following recent defaults in the banking sector, that over time the government may become more selective in its allocation of support to its government-owned corporate holdings where the need for future substantial capital investments is anticipated. In its review, Moody's will therefore focus on the very high government support assumptions that are incorporated in the ratings, as well as the assumed levels of interdependence for each name with the State (Government sovereign ratings FC/LC Baa2/Negative). Out of the 11 corporate ratings, Moody's remains comfortable with the underlying credit quality of the individual businesses as designated by the respective baseline credit assessments, with the exception of KEGOC and Food Contract Corporation where Moody's has decided to review simultaneously their standalone creditworthiness as well as the support and dependence assumptions. Moody's notes that a similar review is already underway with respect to the issuer and deposit ratings of five government-owned Kazakh financial institutions. The factors being considered as part of the financial institution GRI support review include: (i) the size of the financial system in relation to the government's resources; (ii) the level of stress in the financial system; (iii) the foreign currency obligations of the financial system relative to the government's own foreign exchange resources; and (iv) whether any changes to the government's political patterns and priorities ultimately impact Moody's assessment. Any conclusions reached as part of the assessments of those factors will also help to inform Moody's views on whether support assumptions for the corporate GRIs may need to also be modified. In the case of KEGOC, Moody's review of the company's standalone creditworthiness will also focus on an increasing risk that KEGOC may see its financial metrics deteriorate materially beyond the levels seen as commensurate for the current BCA (namely, Debt/EBITDA at below 5x and FFO/Net Debt in the low to mid-teens) given the reduced electricity consumption and revenue expectations for 2009 and beyond on top of KEGOC's increased debt burden following the February 2009 devaluation of the Kazakh tenge. This would further erode headroom under the financial covenants agreed by KEGOC under its bank agreements. Moody's reassessment of KEGOC's BCA, which may potentially be lowered by more than one notch, will include (i) the degree of the likely deterioration of KEGOC's financial profile in 2009; (ii) the company's ability to remain in compliance with its covenants or negotiate with its bank creditors a relaxation of covenant levels; and (iii) KEGOC's access to cash injections from the government that could mitigate the deterioration in its financial profile caused by the weaker operating performance. In the case of FCC, Moody's review of the company's standalone creditworthiness was primarily prompted by the increase in the level of total debt reported in the first quarter of 2009, mainly as a result of the devaluation of the Kazakh tenge compared to the dollar and by the subsequent reduction in the headroom within the financial covenants existing on its foreign debt. Moody's expects this headroom to decrease further in the second quarter. Therefore, Moody's review will focus on: (i) the expected headroom within the company's financial covenants over the next few quarters; (ii) the degree of government's support in rebuilding sufficient headroom under the covenants which could be factored in the company's rating; and (iii) the company's overall projected financial performance in light of the planned investments and available capital resources. Moody's expects to conclude the review over the next few weeks. Moody's generally anticipates only a moderate adjustment of support assumptions, that the level of support should generally remain relatively high and therefore does not expect multi-notch downgrades -- other than possibly in the case of KEGOC as noted above -- unless there is a material change in Moody's current support assumptions as part of the review. A list of the institutions affected by Moody's rating actions follows: KazMunaiGas NC -- The Baa2 ratings placed on review for possible downgrade Kaztransgas -- The Baa2 ratings placed on review for possible downgrade Intergas Central Asia -- The Baa2 ratings placed on review for possible downgrade Kaztransoil -- The Baa2 ratings placed on review for possible downgrade KazMunayGas E&P -- The Baa2 ratings placed on review for possible downgrade Food Contract Corporation -- The Baa3 ratings placed on review for possible downgrade Kazakhstan Temir Zholy -- The Baa2 ratings placed on review for possible downgrade Kazakhstan Electricity Grid Operating Company -- The Baa2 ratings placed on review for possible downgrade Kazpost -- The Baa3 issuer rating and the Aa3.kz National Scale Rating placed on review for possible downgrade Kaztemirtrans -- The Ba1 ratings placed on review for possible downgrade Kazatomprom -- The Baa3 ratings placed on review for possible downgrade The last rating action on most of these issuers was on May 13, 2009 following the downgrade of Local Currency rating of the Government of Kazakhstan to Baa2 from Baa1 on May 12, 2009 and the change of its outlook to negative from stable: -- The ratings of KazMunaiGas NC, Kaztransgas, Intergas Central Asia and Kaztransoil were downgraded to Baa2 from Baa1 with their outlooks changed to negative from stable; -- The rating of KazMunayGas E&P was left unchanged at Baa2 but the outlook was changed to negative from stable; -- The rating of Food Contract Corporation was downgraded to Baa3 from Baa2 with the outlook changed to negative; -- The ratings of Kazakhstan Temir Zholy at Baa2, Kazakhstan Electricity Grid Operating Company at Baa2 and Kazpost at Baa3 were not affected but the outlooks were changed to negative from stable; -- The ratings of Kaztemirtrans at Ba1 and Kazatomprom at Baa3 were assessed but considered not to have been affected by the action following the sovereign rating decision. The last rating action on Kaztemirtrans was a downgrade to Ba1 on April 27, 2009, while the rating of Kazatomprom was affirmed on December 24, 2007 after an upgrade of the BCA. NAZARET VK: Creditors Must File Claims by June 26 ------------------------------------------------- Creditors of LLP Nazaret VK have until June 26, 2009, to submit proofs of claim to: Kazakhstan Str. 78-27 Ust-Kamenogorsk East Kazakhstan Kazakhstan The Specialized Inter-Regional Economic Court of East Kazakhstan commenced bankruptcy proceedings against the company on March 27, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan SERPIN BKT: Creditors Must File Claims by June 26 ------------------------------------------------- Creditors of LLP Serpin BKT have until June 26, 2009, to submit proofs of claim to: Tereshkov Str. 10 Otenai Taldykorgan Almaty Kazakhstan Tel: 8 (7282) 22-90-39, 8 701 362 50-46 The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on Dec. 19, 2008, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Tauelsyzdyk Str. 53 Taldykorgan Almaty Kazakhstan SMP DIANA: Creditors Must File Claims by June 26 ------------------------------------------------ Creditors of LLP SMP Diana have until June 26, 2009 to submit proofs of claim to: Voroshilov Str. 4-11 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (7232) 55-55-48 The Specialized Inter-Regional Economic Court of East Kazakhstan 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 East Kazakhstan Bajov Str. 2 070000 Ust-Kamenogorsk East Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== NURDAN COMPANY: Creditors Must File Claims by July 10 ----------------------------------------------------- LLC Nurdan Company is currently undergoing liquidation. Creditors have until July 10, 2009, to submit proofs of claim to: Lumumba Str. 106/1 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== CARLSON WAGONLIT: S&P Junks Long-Term Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered to 'CCC+' from 'B-' its long-term corporate credit rating on Netherlands- based business travel operator CWT. The rating was removed from CreditWatch where it was placed with negative implications on March 2, 2009, as a result of a high risk of covenant breach within a year. The outlook is negative. At the same time, the issue rating on CWT's US$850 million senior secured facilities was lowered to 'CCC+' from 'B-' and removed from CreditWatch with negative implications. The recovery rating on these facilities is unchanged at '3', indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. In addition, the issue rating on CWT's EUR285 million floating-rate notes was lowered to 'CCC-' from 'CCC', and removed from CreditWatch with negative implications. The recovery rating on these notes is unchanged at '6', indicating S&P's expectation of negligible (0%-10%) recovery in the event of a payment default. "The lowering to 'CCC+' of our corporate credit rating on CWT reflects our view that revenues and margins in the highly cyclical business travel industry are unlikely to stabilize over the next 12 to 18 months," said Standard & Poor's credit analyst Silvia Ortolan. Although CWT has been using its relatively flexible cost structure to cushion the negative effects of declining revenues, in S&P's view CWT might struggle to identify further cost-cutting opportunities. Additionally, CWT is reportedly incurring upfront costs for planned business reorganization measures in 2009, which are affecting near-term operating cash flows. The negative outlook indicates S&P's view that the economic downturn is likely to lead to an ongoing decline in revenues and earnings in 2009 and 2010. Because of the debt-financed buyout and 2006 acquisition, CWT's credit protection measures are, in S&P's view, weak. CWT's ratio of total adjusted debt to EBITDA, which excludes its cash position of about US$188 million (net of overdrafts), was 6.0x for the full year to Dec. 31, 2008, the same level as the previous year. On Dec. 31, 2008, CWT had total reported financial debt of US$1.1 billion. According to CWT's annual and interim reports, net sales in financial year 2008 were US$1.92 billion, up 4.6% year on year. However, net sales in the first quarter of 2009 were US$375 million, down about 14% compared with the first quarter of 2008. CWT's reported EBITDA margin -- before integration, transaction, and exceptional restructuring costs -- declined to 11.9% in financial year 2008, from 13.2% in 2007. The margin fell further to 8.9% in the first quarter of 2009 from 11.4% in the same period the previous year. "The negative outlook reflects our view that given the tough business environment in CWT's major markets, its operating cash flows might continue to deteriorate further through a combination of declining margins and increasing restructuring costs," continued Ms. Ortolan. The future evolution of the ratings will be driven by CWT's liquidity and covenant headroom. ECONCERN NV: Eneco Takes Over Core Operations After Bankruptcy -------------------------------------------------------------- Aaron Gray-Block at Reuters reports that Dutch utility Eneco has taken over various operations of bankrupt sustainable energy company Econcern NV. Eneco, Reuters discloses, agreed to buy parts of Econcern's consultancy business and wind energy project development unit, and part of its biomass activities in a controlled auction held after a Dutch court declared the Econcern holding company bankrupt. Reuters says competition authorities still need to approve the deal. "This takeover of core operations means more than 400 workers, both domestic and internationally, are expected to be retained," Reuters quoted curators Louis Deterink and Willem Jan van Andel as saying in a statement. Econcern said the curators are continuing talks with other parties to take over the remaining activities. Reuters relates Econcern, which employs 1,100 people, said that the court on Friday had ended its period of receivership, and declared the company and various domestic and international units bankrupt. According to Reuters, two units were granted suspension of payments. Reuters recalls Econcern said in May the company had filed for voluntary receivership after it failed to secure refinancing. On June 15, 2009, Econcern said at the request of the administrators, the court in Utrecht declared Ecostream International B.V. and Evelop International B.V. bankrupt. On June 12, 2009, the Amsterdam court granted suspension of payments to Betronic Hybrid Circuits B.V. and Betronic Nederland B.V. Headquartered in Utrecht, Netherlands, Econcern NV -- http://www.econcern.com/-- is the holding company of Ecofys, Evelop, Ecostream, OneCarbon and Ecoventures. Econcern, through its subsidiaries, engages in developing, constructing, and operating sustainable energy projects. It provides photovoltaic conversion and mounting systems, as well as inverters. The company offers sustainable energy solutions, as well as research, consultancy, and project development services in various fields, including solar energy, wind energy, bio energy, seawater air- conditioning, utility buildings, and hydrogen and fuel cell technology. Econcern was founded in 1984 and is based in Utrecht, the Netherlands. =========== N O R W A Y =========== NEMI FORSIKRING: S&P Maintains 'BB' Insurer Fin'l Strength Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said it had maintained its CreditWatch placement on the 'BB' insurer financial strength and long-term counterparty credit ratings on Norway-based non-life insurer NEMI Forsikring ASA, but revised the implications to positive from developing. The ratings on NEMI were originally placed on CreditWatch developing on Jan. 22, 2009, following a related action on NEMI's then parent, Iceland-based insurer Tryggingamidst�din hf. (TM; BB/Watch Neg/--). The revised CreditWatch placement follows the acquisition of NEMI by Copenhagen-based insurer, Alpha Group (not rated), which was recently completed. "The CreditWatch status reflects the removal of the constraints to the ratings on NEMI derived from its ownership by TM. It also reflects S&P's view that, following its acquisition by the Alpha Group, the ratings are likely to be more reflective of its standalone creditworthiness, which remains largely unchanged," Standard & Poor's credit analyst Peter McClean said. "We expect to resolve the CreditWatch status within the next month following a review of the ratings and further discussions with the management of NEMI and its new parent. S&P expects that any upgrade will likely be limited to one notch." =============== P O R T U G A L =============== PELICAN MORTGAGES: Fitch Assesses Impact of Reserve Fund Draw ------------------------------------------------------------- Fitch Ratings said that it is assessing the impact of the reserve fund draw in Pelican Mortgages No. 4 Plc, which occurred as of the most recent payment date in June 2009. According to its analysis, the agency believes that the reserve fund draw was primarily caused by a decrease in receipts from the swap counterparty, caused by rapidly falling Euribor levels. Pelican 4 is a Portuguese RMBS transaction. The mortgage loans in its securitized portfolio were originated by Caixa Economica Montepio Geral ('A-'/'F2'/Stable). The loans in the pool are all variable rate, which are indexed to three-, six- and twelve-month Euribor, while the notes issued by Pelican 4 carry a three month Euribor reference rate. At close the issuer entered into an interest rate swap agreement with ABN AMRO Bank N. V. ('AA-'/'F1+'/Stable), on a notional amount that is equal to the outstanding portfolio, excluding loans in arrears by more than 90 days. The swap requires the issuer to pay the hedge counterparty a weighted average Euribor rate received from the outstanding balance of the loans, while receiving a three month Euribor reference rate. In a rising interest rate scenario, the hedge provided benefit to the transaction, however, the rapid rate cuts made by the European Central Bank towards the end of 2008, and in the first quarter of 2009, caused a faster decrease in the reference rate applied to the amount due to the issuer, compared to the swap rate due to the swap counterparty. This is because the amount paid by the issuer to the swap counterparty is based on the amount paid by the underlying mortgages, which reset on a three, six and twelve months basis, whereas the swap counterparty payment resets every three months. In March 2009, the mismatch first became noticeable when the amount received from the counterparty dropped to 18.1% from 24.8% in December 2008 of the overall available funds. The mismatch increased as of June 2009, causing the draw on the reserve fund in the amount of EUR0.5 million, bringing the balance to 98% of the target amount. As the underlying loans continue to reset, Fitch expects that this mismatch will decrease, however, it is likely that a further reserve draw is likely to occur at the next interest payment date in September 2009. The agency is assessing the impact of the swap rate mismatch and will take rating actions as deemed necessary. Pelican 4's current ratings are: -- Class A (ISIN XS0365137990) 'AAA'; Outlook Stable -- Class B (ISIN XS0365138295) 'AA'; Outlook Stable -- Class C (ISIN XS0365138964) 'A-'; Outlook Stable -- Class D (ISIN XS0365139004) 'BBB'; Outlook Stable -- Class E (ISIN XS0365139939) 'BB'; Outlook Stable ============= R O M A N I A ============= * ROMANIA: Corporate Insolvencies Up 60.35% in January-May 2009 --------------------------------------------------------------- Actmedia reports that according to data offered by Uniunea Nationala a Practicienilor in Insolventa of Romania, the number of companies undergoing insolvency procedure in Romania increased by 60.35% to 9,687 over January�May 2009, as compared to the similar period of last year. There were 3,646 corporate insolvencies recorded over the first five months of 2008, the report relates. Citing Arin Stanescu, chairman of UNPIT, the report discloses the number of new insolvency applications will surpass 20,000 this year. =========== R U S S I A =========== BEL-ENERGO-MASH CJSC: Creditors Must File Claims by June 29 ----------------------------------------------------------- Creditors of CJSC Bel-Energo-Mash (TIN 3123097260, PSRN 1033107023070) (Boiler Manufacturing Plant) have until June 29, 2009, to submit proofs of claims to: V. Masliyov Temporary Insolvency Manager Post User Box 7-18 308033 Belgorod Russia The Arbitration Court of Belgorodskaya will convene at 11:00 a.m. on Sept. 30, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?08- 2011/09�24B. The Debtor can be reached at: CJSC Bel-Energo-Mash Vatutina Str. 3a 308013 Belgorod Russia DAGESTAN REGIONAL: Creditors Must File Claims by June 29 -------------------------------------------------------- Creditors of CJSC Dagestan Regional Gas Company (TIN 0552002920, PRSN 1040500713571) have until June 29, 2009, to submit proofs of claims to: D. Kochkarov Insolvency Manager U. Alieva Str. 72 Cherkessk 369000 Karachaevo-Cherkessia Russia The Arbitration Court of Karachaevo-Cherkessia will convene at 11:30 a.m. on Aug. 25, 2009, to hear bankruptcy proceedings. The case is docketed under Case No. ?15�659/2009. The Debtor can be reached at: CJSC Dagestan Regional Gas Company Yaragskogo Str. 1 Makhachkala 367002 Dagestan Russia INDUSTRIAL AND CONSTRUCTION: Creditors Must File Claims by June 29 ------------------------------------------------------------------ Creditors of LLC Industrial and Construction Company (TIN 6729033100, PSRN 1066731001810) have until June 29, 2009, to submit proofs of claims to: T. Sergeeva Temporary Insolvency Manager Office 135 Kolesanova Str. 11 153008 Ivanovo Russia Tel: (4932)29-23-19 The Arbitration Court of Smolenskaya will convene at 11:00 a.m. on Aug. 27, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?62�1430/2009. The Debtor can be reached at: LLC Industrial and Construction Company Sverdlova Str. 24 Smolensk Smolenskaya Russia KURSK-ENERGO-MASH LLC: Creditors Must File Claims by June 29 ------------------------------------------------------------ Creditors of LLC Kursk-Energo-Mash (TIN 4631014002, PSRN 1024600939505) (Electrical Equipment Manufacturing) have until June 29, 2009, to submit proofs of claims to: A. Zaborny Temporary Insolvency Manager S. Razina Str. 9B Kursk Russia The Arbitration Court of Kurskaya commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. ?35�2061/09-S24. The Debtor can be reached at: LLC Kursk-Energo-Mash Mirnaya Str. 17/19 305004 Kursk Russia RSHB CAPITAL: Fitch Assigns 'D' Individual Rating ------------------------------------------------- Fitch Ratings has assigned RSHB Capital S.A.'s US$1 billion 9% senior unsecured five-year maturity loan participation notes a final Long-term 'BBB' rating. The notes are to be used solely for financing a loan to OJSC Russian Agricultural Bank, rated Long- term Issuer Default 'BBB' with Negative Outlook, Short-term IDR 'F3', Individual 'D', Support '2', Support Rating Floor 'BBB' and National Long-term 'AAA(rus)' with Stable Outlook. The notes are issued under RAB's loan participation program, rated Long-term 'BBB' and Short-term 'F3'. Earlier this month, the programme's limit was increased to US$7 billion (from US$5 billion), while the other terms and conditions remained unchanged. Original details on the program can be found in Fitch's commentary, dated May 3, 2006, on the agency's subscription website, www.fitchresearch.com RAB is Russia's third-largest 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. SEVERSTAL OAO: Sberbank Grants US$300 Mln Credit Facility --------------------------------------------------------- Sberbank has granted OAO Severstal a three-year US$300 million credit facility. The loan proceeds will be used for working capital purposes and re-financing of already existing indebtedness of the company. "These credit facilities will allow the Company to further strengthen its liquidity and extend maturity profile. Sberbank facility is a reliable long-term source of capital which will be used to finance ongoing needs and replace some of our maturing obligations," said Sergei Kuznetsov, CFO of ??? Severstal. Headquartered in Cherepovets, Russia, Severstal OAO, through its subsidiaries -- http://www.severstal.com/ -- operates in seven segments. The mining segment comprises iron ore and coal mining complexes and gold mining assets. The Russian Steel segment comprises the Company's steel production and automotive galvanizing facilities. The Lucchini segment comprises plants and service centers, including Piombino and Ascometal business units. The North America segment consists of two integrated iron and steel mills. Izhora Pipe Mill operates a large-diameter pipe mill in Northwest Russia. The Metalware segment comprises plants containing wire drawing equipment that takes long products from the Russian Steel and Lucchini segments and external suppliers and turns them into products with a higher value for the Russian and International markets. The Financing segment, until November 2007, operated a retail bank. In December 2008, the Company acquired ZAO Trade House Severstal � Invest. In January 2008, it acquired baracom Limited. * * * Severstal OAO continues to carry a Ba2 rating from Moody's Investors Service with negative outlook. ZAPAD-STROY LLC: Creditors Must File Claims by June 29 ------------------------------------------------------ Creditors of LLC Zapad-Stroy Ltd (TIN 3906038680, PSRN 1023901004577) (Construction) have until June 29, 2009, to submit proofs of claims to: V. Kiselev Temporary Insolvency Manager D. Donskogo Str. 7-216 Kaliningrad Russia The Arbitration Court of Kaliningradskaya will convene at 10:15 a.m. on July 27, 2009, to hear bankruptcy supervision procedure on the company. The case is docketed under Case No. ?21�2633/2009. The Debtor can be reached at: LLC Zapad-Stroy Ltd Pereulok Griga 58 236016 Kaliningrad Russia ========= S P A I N ========= CEMEX ESPANA: Fitch Puts 'B' IDR on Rating Watch Evolving --------------------------------------------------------- Fitch Ratings has placed these ratings of Cemex, S.A.B. de C.V., and its subsidiaries on Rating Watch Evolving: Cemex -- Foreign currency Issuer Default Rating 'B'; -- Local currency IDR 'B'; -- Long-term national scale rating 'BB-(mex)'; -- MXN5 billion Certificados Bursatiles program 'BB- (mex)'; -- MXN30 billion Programa Dual Revolvente de Certificados Bursatiles program 'BB-(mex)'; -- Senior unsecured debt obligations 'B+/RR3''; -- Unsecured debt issued through the Certificados Bursatiles program 'BB-(mex)'; -- Short-term national scale rating 'B (mex)'; -- MXN2.5 billion short-term portion of Programa Dual Revolvente de Certificados Bursatiles program 'B (mex)'. Cemex Espana S.A. -- IDR 'B'; -- Senior unsecured debt obligations 'B+/RR3'. Rinker Materials Corporation -- US$150 million senior unsecured notes due 2025 'B+/RR3'. The revision in the company's Rating Watch to Evolving from Negative is a result of the agreement by Cemex to sell its Australian operations to Holcim for AUD2.02 billion (US$1.6 billion). Fitch views the asset sale as mildly positive for Cemex's credit quality as it may enable the company to complete a comprehensive refinancing plan given the incremental liquidity provided by the asset sale. Ultimately, an improved debt amortization schedule that provides sufficient financial flexibility to operate through the economic downturn could also pave the way for additional asset sales by Cemex. Potential improvements in credit quality following the completion of a bank refinancing would likely be limited. The loss of the operating cash flow of the Australian assets (EBITDA of AUD313 million) and other assets to be sold, plus the poor performance of the company's business in Europe and the U.S., will continue to result in high leverage at Cemex during 2009 and 2010. The transaction is subject to regulatory approval and buyer financing and could take up to six months to close. The Evolving Rating Watch continues to reflect the potential for future negative rating actions. Rating downgrades would likely occur if the company is not able to get consensus among its bank group to refinance the majority of the debt agreements under satisfactory terms. Credit downgrades could also occur in the near future if bank groups do not provide the company with sufficient liquidity for working capital purposes that would allow the company to operate smoothly through the extreme downturn in its key markets. Cemex had US$768 million of cash and cash equivalents as of March 31, 2009, and approximately US$4.3 billion of short-term debt. On March 10, the company announced that it had initiated negotiations with its core banks to renegotiate its bank debt in order to boost near-term liquidity and extend debt maturities coming due primarily with its banks. CIRCULO 1: Fitch Affirms 'BB-' Rating on Class D Notes ------------------------------------------------------ Fitch Ratings has affirmed Ayt Colaterales Global Hipotecario, FTA Serie Ayt Colaterales Global Hipotecario Caja Circulo 1, a Spanish RMBS transaction. Fitch has simultaneously revised the class D Outlook to Negative from Stable. The transaction is comprised of loans originated by Caja de Ahorros y Monte de Piedad del Circulo Catolico de Obreros de Burgos, 72.6% of which were located in Castilla Leon at closing. The rating actions are: -- Class A (ES0312273321) affirmed at 'AAA'; Outlook Stable; assigned 'LS-1' -- Class B (ES0312273339) affirmed at 'A'; Outlook Stable; assigned 'LS-3' -- Class C (ES0312273347) affirmed at 'BBB-'; Outlook Stable; assigned 'LS-3' -- Class D (ES0312273354) affirmed at 'BB-'; Outlook revised to Negative from Stable; assigned 'LS-3' Circulo 1 reports on a semi-annual basis and as of the May 2009 interest payment date showed a deterioration in the proportion of performing loans. Loans that are three months or greater in arrears comprise 0.92% of the current balance; the total value of arrears has increased to EUR5.1m (3.62% of the outstanding portfolio) from EUR2.4m (1.69% of the outstanding portfolio) from the previous IPD. There have been no defaults or losses to date. Net excess spread decreased significantly in the last period suggesting that not only has the level of excess spread generated by the transaction reduced, but that there is also a risk that when defaults materialize there may not be enough excess spread to cover them. Although the reserve fund is at its target amount, Fitch anticipates reserve fund draws in the coming periods given the compression of excess spread and the rising arrears. Net excess spread was 0.14% (EUR199,590) of the outstanding collateral balance in May 2009, compared to 0.29% in the previous period. The Negative Outlook on the junior tranche reflects expected deterioration of the pool and likely reserve fund draws which will reduce the credit enhancement on the junior note. The pool deterioration suggests arrears will continue to grow and further defaults are expected, alongside uncertainty with regards to the level of recoveries due to Fitch's expected house price declines of 25%-30% peak-to-trough in Spain. Moreover, given that the transaction reports on a semi-annual basis, pool performance can change significantly between reports and a Negative Outlook was assigned in advance of further pool deterioration. GAT ICO: Moody's Assigns 'P(C)' Ratings on Four Classes of Notes ---------------------------------------------------------------- Moody's Investors Service assigned provisional credit ratings to these classes of Notes to be issued by GAT ICO FTVPO 1 FTH: -- (P)Aaa to the EUR331.6 million Series A(G) notes -- (P)A2 to the EUR9.8 million Series B(CA) notes -- (P)A2 to the EUR3.3 million Series B(CM) notes -- (P)A2 to the EUR2.7 million Series B(CP) notes -- (P)A2 to the EUR2.0 million Series B(CT) notes -- (P)Ba2 to the EUR3.2 million Series C(CA) notes -- (P)Ba2 to the EUR2.3 million Series C(CM) notes -- (P)Ba2 to the EUR1.5 million Series C(CP) notes -- (P)Ba2 to the EUR1.5 million Series C(CT) notes -- (P)C to the EUR6.1 million Series D(CA) notes -- (P)C to the EUR2.5 million Series D(CM) notes -- (P)C to the EUR1.6 million Series D(CP) notes -- (P)C to the EUR1.4 million Series D(CT) notes The provisional ratings address the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date on Series A(G), B and C, and for ultimate payment of interest and principal at par on or before the rated final legal maturity date on Series D. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed but may have a significant effect on the yield to investors. The transaction represents the securitization of Spanish residential mortgage loans originated by Caixa Catalunya, Caixa Manresa, Caixa Penedes and Caixa Terrassa. GAT ICO FTVPO 1 FTH is a RMBS transaction carried out with the guarantee of the ICO (Aaa/ P-1) for the A(G) notes. The loans included in the securitization fund must comply with certain conditions of the ICO FTVPO programme. The product being securitized is around 100% VPO properties. VPOs are residential properties that are offered at a lower price than the market value as a result of the various forms of government aid. This price reduction is possible thanks to the subsidies provided by the government to the construction companies, which enables them to reduce the final purchase price of the property. The final pool comprises 9,140 loans which were originated between 1993 and 2007 with a weighted-average seasoning of 5 years and a weighted-average remaining term of 15.08 years. The longest loan matures in April 2033. All the loans are secured by a first-lien mortgage guarantee on residential properties with a current LTV lower than 80%. The current weighted-average LTV is 60.12%. Geographically, the pool is concentrated in the Region of Catalonia (69.45%), a natural consequence of the location of the originators involved in the transaction. The V Score for this transaction is Medium/High, which is higher than the Medium V score assigned for the Spanish RMBS sector. The four broad components underlying the V Score have been assessed higher than the average for Spanish RMBS sector. Components. 1. Sector Historical Data Adequacy and Performance Variability, 2. Issuer/Sponsor/Originator Historical Data Adequacy and 3. Complexity and Market Value Sensitivity are Medium/High, which are higher than the V score assigned for the Spanish RMBS sector and this is driven by the limited historical data for the VPO sector. Moreover historical information provided by originators doesn't cover a severe stress scenario, and the collateral characteristics and the complex cash flow allocations increases the complexity of the analysis of the transaction. Class A as a single class is cross-collaterals by all four pools. The pool is cross- collaterized for the Series A through the use of compensatory interest and principal payments, which allow cash flows from one sub-pool to be used to make up interest or principal shortfall in another sub-poolThe V-Score has been assigned accordingly to the report "V-Scores and Parameter Sensitivities in the Major EMEA RMBS Sectors" published in April 2009. The Spanish Government announced on November 4, 2008 a package of aid to assist unemployed, self employed and pensioneer borrowers through a form of mortgage subsidy aid. It is unclear how the transaction will be affected, although both liquidity and credit implications are possible on this portfolio. However, any implications on the ratings will ultimately depend on the actual financial aid conditions which will be approved. The ratings of the Notes are based upon the analysis of the characteristics of the mortgage pool backing the Notes, the protection the Notes receive from credit enhancement against defaults and arrears in the mortgage pool, the legal and structural integrity of the issue and the credit quality of the parties involved in the transaction. GRANADA 1: Fitch Affirms 'BB-' Rating on Class D Notes ------------------------------------------------------ Fitch Ratings has affirmed Ayt Colaterales Global Hipotecario, FTA Serie Ayt Colaterales Global Hipotecario Caja Granada, a Spanish RMBS transaction. The agency has simultaneously revised the Outlooks on the class C and D notes to Negative from Stable. The transaction is comprised of loans originated by Caja General de Ahorros de Granada, 83% of which were located in Andalucia at closing. The rating actions are: -- Class A (ES0312273164) affirmed at 'AAA'; Outlook Stable; assigned 'LS-1' -- Class B (ES0312273172) affirmed at 'A'; Outlook Stable; assigned 'LS-2' -- Class C (ES0312273180) affirmed at 'BBB-'; Outlook revised to Negative from Stable; assigned 'LS-2' -- Class D (ES0312273198) affirmed at 'BB-'; Outlook revised to Negative from Stable; assigned 'LS-2' Granada 1 reports on a semi-annual basis and as of the May 2009 interest payment date showed a deterioration in the proportion of performing loans. Loans that are three months or greater in arrears comprise 1.88% of the current balance, nearly double the previous IPD of 0.92%. The total value of arrears has increased to EUR21.2 million (6.2% of the outstanding portfolio) from EUR15.4 million (4.3% of the outstanding portfolio) as of the previous IPD. There have been no defaults or losses to date. Net excess spread increased in the last period to 0.27% of the outstanding collateral balance from 0.15% in the prior period. However, given the strong pipeline of arrears, there is a risk that when defaults materialize there may not be enough excess spread to cover them entirely, although the reserve fund is at its target amount. Fitch anticipates reserve fund draws in coming periods given the rising arrears. The Negative Outlook on the junior tranches reflect expected deterioration of the pool and likely reserve fund draws which will reduce the credit enhancement on the junior two notes. The pool deterioration suggests arrears will continue to grow and further defaults are expected, alongside uncertainty with regards to the level of recoveries due to Fitch's expected house price declines of 25%-30% peak-to-trough in Spain. Moreover, given that the transaction reports on a semi-annual basis, pool performance can change significantly between reports and a Negative Outlook was assigned in advance of further pool deterioration. NAVARRA 1: Fitch Downgrades Rating on Class D Notes to 'B' ---------------------------------------------------------- Fitch Ratings has downgraded Ayt Colaterales Global Hipotecario, FTA Serie Ayt Colaterales Global Hipotecario Caja Navarra 1's two junior tranches. Fitch has simultaneously revised the two junior tranches' rating Outlooks to Negative from Stable. The Spanish RMBS transaction's remaining two tranches have been affirmed. This transaction is comprised of loans originated by Caja de Ahorros y Monte de Piedad de Navarra, 91% of which were located in Navarra at closing. The rating actions are: -- Class A (ES0312273040) affirmed at 'AAA'; Outlook Stable; assigned 'LS-1' -- Class B (ES0312273057) affirmed at 'A'; Outlook Stable; assigned 'LS-2' -- Class C (ES0312273065) downgraded to 'BB' from 'BBB-'; Outlook revised to Negative from Stable; assigned 'LS-2' -- Class D (ES0312273073) downgraded to 'B' from 'BB-'; Outlook revised to Negative from Stable; assigned 'LS-4' Navarra 1 reports on a semi-annual basis and showed a considerable deterioration in performance as of the latest May 2009 interest payment date. Loans that are three months or greater in arrears have almost doubled to 2.89% of the current balance, whilst the total value of arrears has increased to EUR5.6 million (6.34% of the outstanding portfolio) from EUR5.0 million (5.50% of the outstanding portfolio) compared with the previous IPD. The reserve fund was drawn by EUR0.55 million in the latest period (30% of the target amount), to help cover EUR732,040 worth of defaults, reducing the credit enhancement to the class D notes. Defaults are defined as loans that are in arrears for more than 18 months. The level of gross excess spread generated decreased during the period and was not sufficient to cover the defaults (Fitch calculated that gross excess spread declined to EUR179,000 from EUR342,000 in previous period). The agency anticipates further reserve fund draws in the forthcoming periods. Fitch notes that reserve fund draws seen in other Spanish RMBS deals have been substantial. Given the thin class D (EUR0.5 million) in Navarra 1, compared with a borrower's average original loan size of EUR0.17 million, there is a risk that the default of one or two loans could have a detrimental impact on the note. The downgrade of the two the junior tranches reflects the transaction's high loan-to-value ratio, which was 88% at closing, and the high percentage of resident non-nationals in the collateral portfolio. In addition to anticipated future reserve fund draws which will further reduce the credit enhancement of the two junior notes, the pool's deterioration suggests that the strong pipeline of arrears will continue to generate defaults. Fitch notes that uncertainty remains regarding the level of recoveries, due to the anticipated losses resulting from Fitch's expected house price declines. The Negative Outlook reflects the expectation of a further deterioration in the pool given the collateral composition. Fitch has noted that both high LTV loans and those to non-nationals have seen worse performance across a number of Spanish RMBS transactions than other loan types. SA NOSTRA 1: Fitch Affirms Rating on Class D Notes at 'BB-' ----------------------------------------------------------- Fitch Ratings has affirmed Ayt Colaterales Global Hipotecario, FTA Serie Ayt Colaterales Global Hipotecario Caja Sa Nostra 1 (Sa Nostra 1), a Spanish RMBS transaction, and revised the Outlook to Negative on class C and D notes. The transaction is comprised of loans originated by Caja de Ahorros y Monte de Piedad de Las Baleares, 99.7% of which were located in Baleares at closing. The rating actions are: -- Class A (ES0312273123) affirmed at 'AAA'; Outlook Stable; assigned 'LS-1' -- Class B (ES0312273131) affirmed at 'A'; Outlook Stable; assigned 'LS-1' -- Class C (ES0312273149) affirmed at 'BBB-'; Outlook revised to Negative from Stable; assigned 'LS-2' -- Class D (ES0312273156) affirmed at 'BB-'; Outlook revised to Negative from Stable; assigned 'LS-3' Latest Sa Nostra 1 reports (on a semi-annual basis and the latest interest payment date in May 2009) showed deterioration in the proportion of performing loans. Loans that are three months or greater in arrears comprise 2.16% of the current balance; the total value of arrears has increased to EUR6.7 million (7.32% of current balance) from EUR4.5 million from the previous IPD November 2008 (4.56%). There have been no defaults or losses to date. Net excess spread has been decreasing consistently over the last 18 months, suggesting that not only has the level of excess spread generated by the transaction reduced, it also shows that there is a risk that there may not be enough excess spread to cover any potential defaults. Although the reserve fund is at its target amount, Fitch anticipates reserve fund draws in the coming periods given the compression of excess spread and the rising arrears. Net excess spread was 0.35% (EUR322,193) of the outstanding collateral balance in May 2009 compared to 0.41% in the previous period. The Negative Outlook on the junior tranche reflects expected deterioration of the pool and likely reserve fund draws which will reduce the credit enhancement on the class D note. The pool deterioration suggests arrears will continue to grow and further defaults are expected, alongside uncertainty with regards to the level of recoveries due to Fitch's expected house price declines of 25%-30% peak-to-trough in Spain. Moreover, given that the transaction reports on a semi-annual basis, pool performance can change significantly between reports and a Negative Outlook was assigned in advance of further pool deterioration. VITAL 1: Fitch Affirms Rating on Class D Notes at 'BB-' ------------------------------------------------------- Fitch Ratings has affirmed Ayt Colaterales Global Hipotecario, FTA Serie Ayt Colaterales Global Hipotecario Caja Vital 1, a Spanish RMBS transaction, and revised the Outlook on the junior class D notes to Negative from Stable. The transaction is comprised of loans originated by Caja de Ahorros de Vitoria y Alava, 56% of which were located in the Basque Country at closing. The rating actions are: -- Class A (ES0312273081) affirmed at 'AAA'; Outlook Stable; assigned 'LS-1' -- Class B (ES0312273099) affirmed at 'A'; Outlook Stable; assigned 'LS-1' -- Class C (ES0312273107) affirmed at 'BBB-'; Outlook Stable; assigned 'LS-2' -- Class D (ES0312273115) affirmed at 'BB-'; Outlook revised to Negative from Stable; assigned 'LS-3' Vital 1 reports on a semi-annual basis and as of the latest May 2009 interest payment date showed a deterioration in the proportion of performing loans. Loans that are three months or greater in arrears comprise 0.88% of the current balance. The total value of arrears has increased to EUR3.04 million (1.66% of the outstanding portfolio) from EUR1.68 million (0.90% of the outstanding portfolio) as of the previous IPD. Defaults materialized in May 2009 and totalled EUR213,563, and, although these loans have yet to be repossessed, all defaulted loans are in the legal process. Defaults are classified as loans that are greater than 18 months in arrears, and the transaction uses available revenue to write-off these loans, accelerating the note pay-down. Excess spread decreased significantly in the latest reporting period. This suggests that the level of excess spread generated by the transaction has reduced and that there is a risk that as more defaults materialize there may not be enough excess spread to cover them. As such, Fitch anticipates reserve fund draws in the coming periods. Net excess spread was 0.02% (EUR35,849) of the outstanding collateral balance (gross excess spread was around EUR250,000 -- a reduction from EUR375,000 the period before) in May 2009. The Negative Outlook on the junior tranche reflects expected deterioration of the pool and likely reserve fund draws which will reduce the credit enhancement on the class D note. The pool deterioration suggests arrears will continue to grow and further defaults are expected, alongside uncertainty with regards to the level of recoveries due to Fitch's expected house price declines of 25%-30% peak-to-trough in Spain. Moreover, given that the transaction reports on a semi-annual basis, pool performance can change significantly between reports and a Negative Outlook was assigned in advance of further pool deterioration. * Moody's Downgrades BFSRs on Three Spanish Banks to 'E+' --------------------------------------------------------- Moody's Investors Service downgraded the senior unsecured debt and deposit ratings of 25 Spanish banks -- 18 by one notch and seven institutions by two notches. At the same time, Moody's downgraded the Bank Financial Strength Ratings of 30 banks. Among these banks, the rating agency downgraded the dated subordinated debt of 17 institutions, the junior subordinated debt of eight institutions, and the preference shares of 14 banks. "The rising pressure that many Spanish banks face from a sharp deterioration of their asset quality is reflected in their stand- alone financial strength ratings, a third of which now fall at a "D-" level or lower," said Maria Cabanyes, a Senior Vice President at Moody's. "However, the moderate downgrade of these banks' senior ratings reflects Moody's expectation that government support would be forthcoming for these institutions should such support become necessary." This rating action concludes the review initiated on May 19, 2009. Eight banks however, continue to have some or all of their ratings under review for further possible downgrade, as outlined in the ratings list below. Downgrade of The Bank Financial Strength Rating The Bank Financial Strength Ratings of 30 banks have been downgraded, with six institutions downgraded by one notch, eight by two notches, eight by three notches and eight by four notches. The downgrades are driven by the speed and depth of the deterioration of the Spanish economy and the impact on banks' balance sheets. Spanish GDP has declined by 3% in the first quarter of 2009. The unemployment rate stood at 17.4% at the end of the first quarter up from 8.6% at the end of 2007 and is expected to be close to 19% by the end of this year. In concert with these broader economic pressures, the banks' asset quality indicators continue to point towards a further significant deterioration. The system-wide non-performing loan rate has deteriorated to 4.27% at end of the first quarter of 2009, up from 0.9% in December 2007 and 3.37% in December 2008. "The extra cushion (i.e. the anti-cyclical provisions) that banks had built up over the years against such risks -- which has so far protected their earnings and capital bases -- is becoming increasingly thin," said Maria Jose Mori, Assistant Vice President and lead analyst for some of the affected banks. While some banks have initiated capital boosting measures, such as through issuance of preference shares or divestment of some of their investment portfolios, Moody's remains concerned that the overall pressure on capital has so far not been sufficiently addressed and resolved by the Spanish banks. "Unless some supportive measures are taken by third parties -- by owners, or likely by the government -- some banks' capital cushions will soon be affected by asset impairments and provisioning requirements," Moody's Mori added. Of those 30 affected banks, only 4 have remained rated at C or above, whereas 17 are now rated between C- and D, and nine are rated D- or E+. Banks with a BFSR of C or above are generally expected to be resilient against even a stress scenario. Banks rated between C- and the higher end of D+ are generally expected to withstand reasonably well Moody's anticipated case loss assumptions, but could come under material pressure in a more severe scenario. Banks rated between the lower end of D+ and E+ levels display more modest fundamentals in the anticipated scenario and are highly sensitive to a more stressed scenario, resulting in an increased likelihood that third-party support would be required. Moreover, while Moody's loss estimates often indicate a similar magnitude of potential capital shortfalls for D- and E+ rated banks, those banks rated D- seem to have a more robust business model and overall stronger risk profile, which Moody's would expect to emerge from any restructuring or recapitalization with less structural changes required. The outlook on all BFSRs is negative, reflecting primarily the vulnerability of these banks to a further deterioration of the operating environment. However, Moody's also noted that a significant government capital injection - which apparently has been discussed for some time now by the Spanish government and the banking sector -- could prompt subsequent upgrades of some BFSRs. The conditions under which such a support package is extended would need to be closely examined, Moody's added. Downgrade of Long-Term Debt and Deposit Ratings Due to a heightened likelihood of systemic support in this crisis, the impact of the BFSR downgrades has not translated into a similar downgrade of the banks' senior debt and deposit ratings. Eighteen institutions have been downgraded by one notch, and seven institutions have been downgraded by two notches. Moody's explained that the expectation of support from the highly- rated Spanish government underpins the investment-grade ratings of these banks. "We believe that the Spanish government is both willing and able to support its banking system if and when required," Moody's Cabanyes said. The banking system's potential capital requirements in and of itself should not put undue pressure on the government's financial flexibility, Moody's added. The differentiation of senior debt and deposit ratings for banks with the same BFSR reflects Moody's expectation that banks will continue to receive or are likely to receive support depending on their level of systemic importance -- even beyond the current crisis. Moody's measures this systemic importance in terms of deposit and loan market shares, at both a regional and a nationwide level. Such measures of systemic importance in some instances can result in an uplift of such an institution's rating by several notches. This expectation of institution-specific systemic relevance has not changed and is also indicated in Moody's published Credit Opinions for each bank. Downgrade of Subordinated Debt and Hybrid Ratings The downgrade of the dated subordinated debt instruments of these institutions is driven by the same factors considered in the downgrade of the senior unsecured debt. These dated subordinated debt instruments continue to be rated one notch lower than the senior debt instruments of the same bank based on subordination. Moody's sees the risk on the junior subordinated debt instruments in the unlikely event of liquidation as slightly higher than that of dated subordinated debt. The risk of coupon deferral and of loss absorption under a going concern-assumption is more limited than for preference shares given the junior subordinateds' perpetual, cumulative and optional deferral triggers. Nevertheless, the risk of such losses has increased. These two considerations have led to the downgrade of these instruments, which are now rated one notch lower than dated subordinated debt for banks with a BFSR of at least C-, and two notches lower for banks with a BFSR of D+ and below. The risk profile for the preference shares is different than that of the subordinated instruments. The coupons are non-cumulative and have a mandatory deferral trigger, which is a P&L loss (or regulatory capital shortfall). Given the heightened possibility of a net loss for many of these banks, Moody's has applied an Expected Loss analysis to these instruments to capture the higher risk of coupon deferral, with the probability of a coupon deferral being linked to the strength of the bank as reflected in its BFSR. Rating Actions in Summary Banks with one or more ratings affected by the current review are (in alphabetical order) 1) Banca March S.A. -- BFSR downgraded to C- (mapping to a BCA of Baa1) from C, outlook changed to negative; -- Long-term debt and deposit rating affirmed at A2 with a negative outlook; -- Short-term debt and deposit rating affirmed at P-1. 2) Banco Bilbao Vizcaya Argentaria, S.A. -- BFSR of B remains under review for possible downgrade; -- Long-term debt and deposit rating remains at Aa1 under review for downgrade; -- Senior subordinated debt remains at Aa2 under review for downgrade; -- Junior subordinated debt remains at Aa2 under review for downgrade; -- Hybrid securities remain at Aa3 under review for downgrade; -- Short-term debt and deposit rating affirmed at P-1. The potential impact on the ratings of BBVA's rated foreign subsidiaries will be covered in a separate Press Release. 3) Banco Cooperativo Espanol, S.A. -- BFSR of C+ remains under review for possible downgrade; -- Long-term debt and deposit rating remains at A1 under review for downgrade; -- Senior subordinated debt remains at A2 under review for downgrade; -- Short-term debt and deposit rating affirmed at P-1. 4) Banco de Credito Local de Espana, S.A. -- BFSR of B remains under review for possible downgrade; -- Long-term debt and deposit rating remains at Aa1 under review for downgrade; -- Short-term debt and deposit rating affirmed at P-1. 5) Banco De Valencia S.A -- BFSR downgraded to D- from C- (mapping to a BCA of Baa1), outlook changed to negative; -- Long-term debt and deposit rating downgraded to Baa1 from A3, outlook changed to negative; -- Senior subordinated debt downgraded to Baa2 from Baa1, outlook changed to negative; -- Hybrid securities downgraded to B1 from Baa2, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-2. 6) Banco Espanol de Credito, S.A. (Banesto) -- BFSR downgraded to C- (mapping to a BCA of Baa2) from B-, outlook changed to negative; -- Long-term debt and deposit rating remains at Aa2 under review for downgrade; -- Senior subordinated debt remains at Aa3 under review for downgrade; -- Junior subordinated debt remains at Aa3 under review for downgrade; -- Hybrid securities remain at A1 under review for downgrade; -- Short-term debt and deposit rating affirmed at P-1. 7) Banco Guipuzcoano -- BFSR downgraded to D+ (mapping to a BCA of Baa3) from C- (mapping to a BCA of Baa2), outlook changed to negative; -- Long-term debt and deposit rating affirmed at Baa1 with a negative outlook; -- Short-term debt and deposit rating affirmed at P-2. 8) Banco Pastor, S.A. -- BFSR downgraded to D from C, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A2, outlook changed to negative; -- Senior subordinated debt downgraded to Baa1 from A3, outlook changed to negative; -- Junior subordinated debt under downgraded to Baa3 from A3, outlook changed to negative; -- Hybrid securities downgraded to Ba3 from Baa1, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P- 1. 9) Banco Popular Espanol, S.A. -- BFSR to C- (mapping to a BCA of Baa1) from B, outlook changed to negative; -- Long-term debt and deposit rating downgraded to Aa3 from Aa2, outlook changed to negative; -- Senior subordinated debt downgraded to A1 from Aa3, outlook changed to negative; -- Hybrid securities downgraded to Baa2 from A1, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-1. 10) Banco Sabadell, S.A. -- BFSR downgraded to C- (mapping to a BCA of Baa2) from B- under, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A2 from Aa3, outlook changed to negative; -- Senior subordinated debt downgraded to A3 from A1, outlook changed to negative; -- Junior subordinated debt under downgraded to Baa1 from A1, outlook changed to negative; -- Hybrid securities downgraded to Baa3 from A2, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-1. 11) Banco Santander S.A. (Spain) -- BFSR of B remains under review for possible downgrade; -- Long-term debt and deposit rating remains at Aa1 under review for downgrade; -- Senior subordinated debt remains at Aa2 under review for downgrade; -- Junior subordinated debt remains at Aa2 under review for downgrade; -- Hybrid securities remain at Aa3 under review for downgrade; -- Short-term debt and deposit rating affirmed at P-1. The potential impact on the ratings of Banco Santander's rated foreign subsidiaries will be covered in a separate Press Release. 12) Bankinter, S.A. -- BFSR downgraded to C from B-, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A1 from Aa3, outlook changed to negative; -- Senior subordinated debt downgraded to A2 from A1, outlook changed to negative; -- Hybrid securities downgraded to Baa1 from A2, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-1. 13) Caixa Catalunya -- BFSR downgraded to D- from C, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A2, outlook changed to negative; -- Senior subordinated debt downgraded to Baa1 from A3, outlook changed to negative; -- Hybrid securities downgraded to B1 from Baa1, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P- 1. 14) Caixa d'Estalvis de Manresa (Caixa Manresa) -- BFSR downgraded to D+ (mapping to a BCA of Baa3) from C, outlook changed to negative; -- Long-term debt and deposit rating downgraded to Baa1 from A2, outlook changed to negative; -- Senior subordinated debt downgraded to Baa2 from A3, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P- 1. 15) Caixa d'Estalvis de Terrassa -- BFSR downgraded to D from C- (mapping to a BCA of Baa1), outlook changed to negative; -- Long-term debt and deposit rating downgraded to Baa2 from A3, outlook changed to negative; -- Senior subordinated debt downgraded to Baa3 from Baa1, outlook changed to negative; -- Junior subordinated debt under downgraded to Ba2 from Baa1, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-2. 16) Caixa Galicia -- BFSR downgraded to D from C, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A2, outlook changed to negative; -- Senior subordinated debt downgraded to Baa1 from A3, outlook changed to negative; -- Junior subordinated debt under downgraded to Baa3 from A3, outlook changed to negative; -- Hybrid securities downgraded to Ba3 from Baa1, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P- 1. 17) Caja de Ahorros de La Rioja (Caja Rioja) -- BFSR downgraded to D+ (mapping to a BCA of Baa3) from C- (mapping to a BCA of Baa1), outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A2, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P- 1. 18) Caja de Ahorros de Salamanca y Soria (Caja Duero) -- BFSR downgraded to D+ (mapping to a BCA of Ba1) from C, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A2, outlook changed to negative; -- Senior subordinated debt downgraded to Baa1 from A3, outlook changed to negative; -- Hybrid securities downgraded to Ba2 from Baa1, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P-1 19) Caja de Ahorros de Santander y Cantabria (Caja Cantabria) -- BFSR downgraded to D- from C- (mapping to a BCA of Baa2) , outlook changed to negative; -- Long-term debt and deposit rating confirmed at A3, outlook changed to negative; -- Senior subordinated debt confirmed at Baa1, outlook changed to negative; -- Hybrid securities downgraded to B1 from Baa2, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-2 20) Caja de Ahorros de Valencia, C y A. (Bancaja) -- BFSR downgraded to D- from C, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A2, outlook changed to negative; -- Senior subordinated debt downgraded to Baa1 from A3, outlook changed to negative; -- Junior subordinated debt under downgraded to Baa3 from A3, outlook changed to negative; -- Hybrid securities downgraded to B1 from Baa1, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P-1 21) Caja de Ahorros de Vigo, Ourense y Pontevedra (Caixanova) -- BFSR downgraded to D from C+, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A1, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P-1 22) Caja de Ahorros de Vitoria y Alava (Caja Vital) -- BFSR downgraded to C from C+, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A2 from A1, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-1 23) Caja de Ahorros del Mediterraneo (CAM) -- BFSR downgraded to D- from C , outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A2, outlook changed to negative; -- Senior subordinated debt downgraded to Baa1 from A3, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P-1 24) Caja de Ahorros Municipal de Burgos -- BFSR downgraded to D from C- (mapping to a BCA of Baa1), outlook changed to negative; -- Long-term debt and deposit rating downgraded to Baa1 from A3, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-2 25) Caja de Ahorros y Monte de Piedad de Avila -- BFSR downgraded to E+ (mapping to a BCA of B1) from C- (mapping to a BCA of Baa2), outlook changed to negative; -- Long-term debt and deposit rating downgraded to Baa3 from Baa1, outlook changed to stable; -- Short-term debt and deposit rating downgraded to P-3 from P-2 26) Caja de Ahorros y Monte de Piedad de Madrid (Caja Madrid) -- BFSR downgraded to D+ (mapping to a BCA of Ba1) from C+, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A1 from Aa3, outlook changed to negative; -- Senior subordinated debt downgraded to A2 from A1, outlook changed to negative; -- Junior subordinated debt under downgraded to Baa1 from A1, outlook changed to negative; -- Hybrid securities downgraded to Ba2 from A2, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-1 27) Caja de Ahorros y Monte de Piedad de Segovia -- BFSR downgraded to E+ (mapping to a BCA of B1) from C- (mapping to a BCA of Baa2), outlook changed to negative; -- Long-term debt and deposit rating downgraded to Baa3 from Baa1, outlook changed to stable; -- Short-term debt and deposit rating downgraded to P-3 from P-2 28) Caja de Ahorros y Monte de Piedad de Zaragoza, Aragon y Rioja (Ibercaja) -- BFSR downgraded to C- (mapping to a BCA of Baa2) from C+, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A2 from A1, outlook changed to negative; -- Senior subordinated debt downgraded to A3 from A2, outlook changed to negative; -- Hybrid securities downgraded to Baa3 from A3, outlook changed to negative; -- Short-term debt and deposit rating affirmed P-1 29) Caja de Ahorros y Pensiones de Barcelona ("La Caixa") -- BFSR downgraded to B- from B, outlook changed to negative; -- Long-term debt and deposit rating downgraded to Aa2 from Aa1, outlook changed to negative; -- Senior subordinated debt downgraded to Aa3 from Aa2, outlook changed to negative; -- Hybrid securities downgraded to A2 from Aa3, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-1 30) Caja Espana de Inversiones (Caja Espana) -- BFSR downgraded to E+ (mapping to a BCA of B1) from C- (mapping to a BCA of Baa2) under review for possible downgrade; -- Long-term debt and deposit rating downgraded to Baa1 from A3, outlook changed to negative; -- Senior subordinated debt downgraded to Baa2 from Baa1, outlook changed to negative; -- Junior subordinated debt under downgraded to Ba1 from Baa1, outlook changed to negative; -- Hybrid securities downgraded to B2 from Baa2, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-2 31) Caja Insular de Ahorros de Canarias -- BFSR downgraded to D- from C- (mapping to a BCA of Baa1), outlook changed to negative; -- Long-term debt and deposit rating downgraded to Baa1 from A3, outlook changed to negative; -- Senior subordinated debt downgraded to Baa2 from Baa1, outlook changed to negative; -- Junior subordinated debt under downgraded to Ba1 from Baa1, outlook changed to negative; -- Short-term debt and deposit rating affirmed at P-2 32) Caja Laboral Popular Cooperativa de Credito -- BFSR downgraded to C- (mapping to a BCA of Baa2) from C+, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A1, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P-1 33) Cajamar Caja Rural, Sociedad Cooperativa de Credito -- BFSR downgraded to D+ (mapping to a BCA of Baa3) from C, outlook changed to negative; -- Long-term debt and deposit rating downgraded to A3 from A2, outlook changed to negative; -- Short-term debt and deposit rating downgraded to P-2 from P-1 34) Confederacion Espanola de Cajas de Ahorro (CECA) -- BFSR of B- remains under review for possible downgrade; -- Long-term debt and deposit rating remains at Aa2 under review for downgrade; -- Short-term debt and deposit rating affirmed at P-1 35) Lico Leasing, EFC S.A. -- Long-term debt and deposit rating remains at A2 under review for downgrade; -- Short-term debt and deposit rating remains at P-1under review for downgrade 36) Mtes. de P. y Caja de Ahorros de Ronda, Cadiz, Almeria, Malaga y Antequera (Unicaja) -- BFSR downgraded to C+ from B-, outlook changed to negative; -- Long-term debt and deposit rating affirmed at Aa3 with a negative outlook; -- Senior subordinated debt affirmed at A1 with a negative outlook; -- Short-term debt and deposit rating affirmed at P-1 37) Santander Consumer Finance, S.A. -- BFSR of C+ remains under review for possible downgrade; -- Long-term debt and deposit rating remains at A1 under review for downgrade; -- Senior subordinated debt remains at A2 under review for downgrade; -- Short-term debt and deposit rating remains at P-1 under review for downgrade. Moody's last rating action on Banca March was on May 19, 2009, when the bank's BFSR was put under review for possible downgrade and the bank's debt ratings were affirmed. Moody's last rating action on Banco de Valencia was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action Banco Espanol de Credito was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Banco Guipuzcoano was on May 19, 2009, when the bank's BFSR was put under review for possible downgrade and the bank's debt ratings were affirmed. Moody's last rating action on Banco Pastor was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Banco Popular was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Banco Sabadell was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Bankinter was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caixa Catalunya was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caixa d'Estalvis de Manresa was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caixa d'Estalvis de Terrassa was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caixa Galicia was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caixanova was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros de �vila was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros de La Rioja was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros de Santander y Cantabria was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros de Valencia, C y A. (Bancaja) was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros de Vitoria y Alava was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros del Mediterraneo (CAM) was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros Municipal de Burgos was on November 28, 2008, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros y Monte Piedad de Madrid was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros y Monte Piedad de Segovia was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros y Monte de Piedad de Zaragoza, Aragon y Rioja (Ibercaja) was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja de Ahorros y Pensiones de Barcelona was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja Duero was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja Espana de Inversiones was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja Insular de Ahorros de Canarias was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Caja Laboral Popular Coop. de Credito was onMay 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Cajamar Caja Rural, Soc. Coop. de Credito was on May 19, 2009, when the bank's ratings were put under review for possible downgrade. Moody's last rating action on Unicaja was on May 19, 2009, when the bank's BFSR was put under review for possible downgrade and the bank's debt ratings were affirmed. ===================== S W I T Z E R L A N D ===================== ALCON CREDIT: Creditors Must File Claims by June 26 --------------------------------------------------- Creditors of Alcon Credit Corporation AG are requested to file their proofs of claim by June 26, 2009, to: Xavier Vocat Liquidator Route des Arsenaux, 41 1701 Fribourg Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary general meeting held on May 7, 2009. ELBA GMBH: Creditors Have Until June 25 to File Claims ------------------------------------------------------ Creditors of ELBA GmbH are requested to file their proofs of claim by June 25, 2009, to: ELBA GmbH St. Alban-Vorstadt 102 4052 Basel Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary general meeting held on May 5, 2009. H.U. DEUBELBEISS AG: Claims Filing Deadline is June 26 ------------------------------------------------------ Creditors of H.U. Deubelbeiss AG are requested to file their proofs of claim by June 26, 2009, to: Hans Ulrich Deubelbeiss Liquidator Schweizistrasse 33 5102 Rupperswil Switzerland The company is currently undergoing liquidation in Rupperswil. The decision about liquidation was accepted at an extraordinary general meeting held on Dec. 9, 2008. RIMMELE AG: Creditors Must File Claims by June 26 ------------------------------------------------- Creditors of Rimmele AG are requested to file their proofs of claim by June 26, 2009, to: Rimmele AG Wisliacher 10 8053 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at a general meeting held on Dec. 18, 2008. SCHWANSTEIN AG: Claims Filing Deadline is June 25 ------------------------------------------------- Creditors of Schwanstein AG are requested to file their proofs of claim by June 25, 2009, to: Dr. Herbert Trachsler Liquidator Seefeldstrasse 283 8034 Zurich Switzerland The company is currently undergoing liquidation in Baar. The decision about liquidation was accepted at an extraordinary general meeting held on April 30, 2009. TIARA FLEURS: Claims Filing Deadline is June 25 ----------------------------------------------- Creditors of Tiara Fleurs GmbH are requested to file their proofs of claim by June 25, 2009, to: Gfeller Hans Liquidator Bahnhofstrasse 26 4900 Langenthal Switzerland The company is currently undergoing liquidation in Langenthal. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on March 24, 2009. ============= U K R A I N E ============= AGRICULTURAL MEGA: Creditors Must File Claims by June 24 -------------------------------------------------------- Creditors of LLC Agricultural Mega (code EDRPOU 32882314) have until June 24, 2009, to submit proofs of claim to: N. Martinenko Insolvency Manager Office 5 Mayakovsky Avenue 12 69035 Zaporozhye Ukraine The Economic Court of Zaporozhye commenced bankruptcy proceedings against the company on May 5, 2009. The case is docketed under Case No. 19/306/08. The Court is located at: The Economic Court of Zaporozhye Shaumian Str. 4 69600 Zaporozhye Ukraine The Debtor can be reached at: LLC Agricultural Mega Mikhaylovka 72002 Zaporozhye Ukraine AGROPRODINVEST-R LLC: Creditors Must File Claims by June 24 ----------------------------------------------------------- Creditors of LLC Agroprodinvest-r (code EDRPOU 34158593) have until June 24, 2009, to submit proofs of claim to: R. Senik Insolvency Manager Post Office Box 26 76008 Ivano-Frankovsk Ukraine The Economic Court of Ivano-Frankovsk commenced bankruptcy proceedings against the company on May 5, 2009. The case is docketed under Case No. B-23/4. The Court is located at: The Economic Court of Ivano-Frankovsk Shevchenko str. 16 Ivano-Frankovsk Ukraine The Debtor can be reached at: LLC Agroprodinvest-r Mukha Str. 12 Rogatin 77000 Ivano-Frankovsk Ukraine ERA OJSC: Creditors Must File Claims by June 24 ----------------------------------------------- Creditors of OJSC Era(code EDRPOU 03058626) have until June 24, 2009, to submit proofs of claim to Y. Vanzhula, the company's insolvency manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company on April 29, 2009. The case is docketed under Case No. 50/289. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy Str. 44-b 01030 Kiev Ukraine The Debtor can be reached at: OJSC Era Office 3 G. Gongadze Str. 20 04215 Kiev Ukraine FREGAT LLC: Creditors Must File Claims by June 24 ------------------------------------------------- Creditors of LLC Kerch Marine Plant Fregat (code EDRPOU 32316153) have until June 24, 2009, to submit proofs of claim to: G. Eremenko Insolvency Manager Office 155 Pobeda Avenue 76 Simferopol AR Krym Ukraine The Economic Court of AR Krym commenced bankruptcy proceedings against the company on April 9, 2009. The case is docketed under Case No. 2-31/7556-2007. The Court is located at: The Economic Court of AR Krym R. Luxembourg Str. 29/Rechnaya Str. 11 95000 Simferopol AR Krym Ukraine The Debtor can be reached at: LLC Kerch Marine Plant Fregat Kirov Str. 54-A 98318 Kerch AR Krym Ukraine METAL-INVEST LLC: Creditors Must File Claims by June 24 ------------------------------------------------------- Creditors of LLC Metal-Invest (code EDRPOU 35737860) have until June 24, 2009, to submit proofs of claim to: V. Gliadchenko Insolvency Manager Sverdlov Str. 68/4 49006 Dnepropetrovsk Ukraine The Economic Court of Dnepropetrovsk commenced bankruptcy proceedings against the company on May 12, 2009. The case is docketed under Case No. B29/130-09. The Court is located at: The Economic Court of Dnepropetrovsk Kujbishev Str. 1a 49600 Dnepropetrovsk Ukraine The Debtor can be reached at: LLC Metal-Invest Zaporozhye Highway 56/534 49000 Dnepropetrovsk Ukraine TISA-FLOR LLC: Creditors Must File Claims by June 24 ---------------------------------------------------- Creditors of Joint Ukrainian and Uzbek LLC Firm Tisa Subsidiary Company Tisa-Flor (code EDRPOU 33073945) have until June 24, 2009, to submit proofs of claim to: S. Lipsky Insolvency Manager Kiev Str. 38/2 79000 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company on Dec. 23, 2008. The case is docketed under Case No. 8/131. The Court is located at: The Economic Court of Lvov Lichakovskaya Str. 128 79010 Lvov Ukraine The Debtor can be reached at: Joint Ukrainian and Uzbek LLC Firm Tisa Subsidiary Company Tisa-Flor Vodogonnaya Str. 2 79017 Lvov Ukraine PKV TRADE: Creditors Must File Claims by June 24 ------------------------------------------------ Creditors of LLC PKV Trade (code EDRPOU 34569085) have until June 24, 2009, to submit proofs of claim to Y. Vanzhula, the company's insolvency manager. The Economic Court of Kiev commenced bankruptcy proceedings against the company on April 29, 2009. The case is docketed under Case No. 50/290. 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 PKV Trade Gorky Str. 95 03150 Kiev Ukraine UKRPOLIMPORT LLC: Creditors Must File Claims by June 24 ------------------------------------------------------- Creditors of LLC Ukrpolimport (code EDRPOU 23270305) have until June 24, 2009, to submit proofs of claim to: O. Oprishko Insolvency Manager S. Bandera Str. 5a/7 79000 Lvov Ukraine The Economic Court of Lvov commenced bankruptcy proceedings against the company on Feb. 5, 2009. The case is docketed under Case No. 4/200. The Court is located at: The Economic Court of Lvov Lichakovskaya Str. 128 79010 Lvov Ukraine The Debtor can be reached at: LLC Ukrpolimport Office 5 Dorosh Str. 7a 79017 Lvov Ukraine =========================== U N I T E D K I N G D O M =========================== ARDANA PLC: Administrator Close to Securing Sale ------------------------------------------------ Hamish Rutherford at The Scotsman reports that Ernst & Young, Ardana plc's administrator, is close to securing a sale of the business. The report relates in recent weeks, E&Y has begun "a series of interesting discussions" with a group of investors who administrator David Duggins believes could make a serious bid. Mr. Duggins, however, warned it was still possible the talks could fall apart, the report notes. He declined to discuss the identity of the potential investors or how much E&Y was seeking for the business, the report discloses. "These are a group of people who know the business well enough to be interested, but it has just taken a long time to attract enough other people with money," Mr. Duggins was quoted by the report as saying. "For the first time almost since we were appointed, it feels like we're close to getting a deal through." The report recalls Ernst & Young was appointed as administrator of Ardana at the end of June after the company ran out of cash. According to the report, investors refused to pour money into drugs which were years away from commercial release. Headquartered in Edinburgh, Scotland, Ardana plc -- http://www.ardana.co.uk-- is a pharmaceutical company. The Company is focused on the discovery, development and marketing of products to improve human reproductive health. Its principal products include Emselex, a once a day treatment for the symptoms of overactive bladder syndrome; Striant SR, a testosterone replacement therapy for men with confirmed hypogonadism; Invicorp, an injectable combination drug treatment for erectile dysfunction; Testosterone Cream, a trans-dermal testosterone delivery system in development for the treatment of male hypogonadism, in Phase III trails; GHS, a growth hormone secretagogue in late-stage development for the diagnosis of growth hormone deficiency, and Teverelix LA, in development for three initial indications (prostate cancer, benign prostatic hyperplasia and endometriosis). The Company's operations are located in the United Kingdom, with commercialization and development activities being carried out in the United Kingdom and the rest of Europe. CARLISLE CASTLE: S&P Assigns 'BB' Rating on Class D Notes --------------------------------------------------------- Standard & Poor's Ratings Services assigned its credit ratings to the asset-backed floating-rate notes series 2009-B issued by Carlisle Castle Funding Group Ltd. The servicer is Capital One Bank (Europe) PLC. As in previous transactions, the collateral comprises U.K.-originated Visa, MasterCard, and American Express credit card receivables generated on accounts owned by COBE. The last transaction, Carlisle Castle Funding Group's series 2009-A PLC, closed in March 2009. The capital structure differs from issuances before the series 2009-A issuance, as it comprises five tranches, with a subordinated unrated class E tranche. In line with the series 2009-A issuance, but unlike other previous issuances out of COBE's Castle Trust platform, an additional reallocation yield mechanism is in place from closing. This mechanism allows principal to be borrowed up to a maximum amount of the class E note size to pay a certain amount of the margin on the class A notes. S&P has reviewed the structural effect of this mechanism and have sized for it accordingly. The class D notes had an upfront reserve of 3.5% at closing, in addition to a standard excess spread trapping mechanism. Charge-offs in the credit card industry have risen over the past year. This can partly be attributed to the rise in U.K. bankruptcies and individual voluntary arrangements (IVAs) seen since mid-2008 and a deterioration in the macroeconomic climate, particularly regarding a rise in unemployment. The yield on the trust has seen a recent decline, partly driven by the decreasing Bank of England base rate, with a large portion of the portfolio being adjustable-rate cards linked to the base rate. S&P expects yield to remain stable in the near term, although regulatory pressures may cause downward pressure on yield in the current environment. Payment rates have decreased for the trust, in line with a decline across the credit card industry over the past few months. This decline, as for the charge-offs, reflects a rise in unemployment and decline in general consumer affordability. As the effects of the recession are likely to deepen in the coming months, S&P believes negative pressures will continue to affect the trust performance. The structure for this series 2009-B issuance meets S&P's current stress levels for the ratings assigned. For further details on the trust structure please see S&P's published reports on the issuances under the Castle Trust platform. Ratings List Carlisle Castle Funding Ltd. Up to GBP567.4 Million Asset-Backed Floating-Rate Notes Series 2009-B Initial Maximum amount amount Class Rating (Mil. GBP) (Mil. GBP) ----- ------ ---------- ---------- A AAA 190.35 400.00 B A 28.35 59.60 C BBB 20.25 42.55 D BB 27.00 56.75 E NR 4.05 8.50 NR � Not rated. DAIRY FARMERS: Closes Blaydon Dairy; 290 Jobs Affected ------------------------------------------------------ BBC News reports that the Dairy Farmers of Britain's receivers decided to close the company's Blaydon dairy Friday last week, resulting in the loss of up to 290 jobs. BBC News discloses according to Stephen Oldfield, joint receiver and manager of DFB, a rescue deal fell through at lunchtime on Friday when the buyer withdrew. BBC News relates Mr. Oldfield said they had worked "very hard" to find buyers for the various parts of the DFB business. "The liquids business has suffered continuing losses and recent withdrawal of customers has compounded the problem," BBC News quoted Mr. Oldfield as saying. "In the absence of buyers, we have already had to close the Lincoln and Bridgend dairies." On June 16, 2009, the Troubled Company Reporter-Europe, citing BBC News, reported DFOB, which is responsible for 10% of UK milk production, went into receivership after losing a lucrative supermarket contract and was struggling to pay its 1,800-member farmers a competitive price for milk. Stephen Oldfield, David Kelly and Ian Green were appointed joint receivers and managers of DFOB on June 3, 2009. Dairy Farmers of Britain -- http://www.dairyfarmersofbritain.com/ -- is one of the UK's leading dairy co-operatives. The co-op's services include milk collection and distribution, testing and quota management, and business administration. Its brands include Cadog (milk, butter, and cheese), Capricorn (cheese), Dairy Farmers of Britain (milk, cream, and cheese), Clary's (ice cream), Wonder Cow (organic dairy products) all of which are available at UK food stores. Dairy Farmers delivers milk to more than 120,000 homes across England and Wales. LDV: John Caudwell Eyes Takeover Bid ------------------------------------ Myles Neligan at Reuters reports that according to the Mail on Sunday newspaper, LDV may get a takeover bid from telecoms entrepreneur John Caudwell. Reuters relates the paper said Mr. Caudwell has asked advisers to review LDV's situation, Reuters discloses the paper said Mr. Caudwell's interest in LDV is at an early stage and he has not yet signed a non-disclosure agreement with administrators PricewaterhouseCoopers. Reuter recalls LDV was placed into administration on June 8, 2009. On June 4, 2009, the Troubled Company Reporter-Europe, citing Telegraph.co.uk, reported LDV was forced to reapply for administration after potential buyer Weststar failed to secure financing for a deal. "We have explored all known avenues to access this funding, including assistance from the UK Government, but without this in place, it will not be possible to deliver the plan to secure jobs in the UK," Telegraph.co.uk quoted Weststar as saying in a statement. Telegraph.co.uk recalled last month Malaysia's Westar agreed a preliminary deal to rescue the company, which employs 850 staff directly. The agreement to buy LDV was subject to due diligence, financing and various approvals, BreakingNew.ie disclosed. Telegraph.co.uk said in order to support LDV while negotiations were completed, the British government provided a GBP5 million bridging loan to Weststar. However, Weststar, having already used GBP1.4 million to pay workers and prepare for manufacturing, was not prepared to release more, Telegraph.co.uk stated. Based in Birmingham, LDV -- http://www.ldv.com/-- designs, manufactures and distributes the MAXUS range of light commercial vehicles. Originally formed in 1993 as Leyland DAF Vans Ltd, it later changed its name to LDV Group Ltd and is now under Gaz Group ownership since July 2006. LDV has an annual turnover of GBP160 million and exports vehicles to Europe, the Middle East and to the Asian Pacific Rim. The Group also includes Birmingham Pressings, a stamping business producing body panels and subassemblies for LDV and external customers. LLOYDS BANKING: Set to Write Off GBP450 Mln Admiral Investment -------------------------------------------------------------- Victoria Thomson at The Scotsman reports that Lloyds Banking Group plc is thought to be set to write off GBP450 million on its investment in pubs group Admiral Taverns. The Scotsman relates that reports on Sunday claimed that the bank is sounding out potential buyers of its debt, resulting in the potential write-off. According to the Scotsman, Admiral, which Bank of Scotland arm lent more than GBP850 million, is now thought to be worth less than GBP500 million after being hit by the property slump. About Lloyds Banking Group PLC Lloyds Banking Group PLC (LON:LLOY) -- http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group plc, is United Kingdom-based financial services company, whose businesses provide a range of banking and financial services in the United Kingdom and a limited number of locations overseas. The operations of Lloyds TSB Group in the United Kingdom were conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds TSB Scotland plc and Cheltenham & Gloucester plc during the year ended December 31, 2007. Cheltenham & Gloucester plc (C&G) is the Company's specialist mortgage arranger. Following the transfer of its mortgage lending and deposits to Lloyds TSB Bank, during 2007, C&G arranges mortgages for Lloyds TSB Bank rather than for its own account. International business is conducted mainly in the United States and continental Europe. Lloyds TSB Group's services in these countries are offered through branches of Lloyds TSB Bank. In January 2009, the Company acquired HBOS plc. The Troubled Company Reporter-Europe reported on February 19, 2009, that Fitch Ratings affirmed the Long-term and Short-term Issuer Default Ratings of the Lloyds Banking Group plc and its subsidiaries, Lloyds TSB bank plc, HBOS plc and Bank of Scotland plc at 'AA-' (AA minus) and 'F1+,' respectively. The agency has downgraded LBG's, LTSB's and BOS's Individual ratings to 'C/D' from 'B/C', 'B/C' from 'B' and 'C/D' from 'C' respectively. All three Individual ratings have been placed on Rating Watch Negative. The downgrades on the Individual ratings reflect Fitch's concern about the significant deterioration in certain portfolios within BOS's corporate banking and treasury units and higher risk parts of its residential mortgage portfolio, together with the agency's expectation that problems are likely to continue to increase in a weakening operating environment, severely challenging profitability and weakening capitalization over the coming 12-18 months. The Rating Watch Negative on the Individual ratings reflects ongoing uncertainty around these exposures and group capitalization. PREMIUM BARS: Gets GBP48 Mln Takeover Bid From Reuben Brothers -------------------------------------------------------------- The Scotsman reports that Premium Bars & Restaurants plc is believed to have received a GBP48 million takeover bid from the Reuben brothers. According to the Scotsman, PBR is understood to be set to enter a "pre-pack" administration as part of the deal in an attempt to cast off some of its liabilities. Manchester Evening News says to succeed the Reuben brothers would need approval from the PBR board and accountants BDO Stoy Hayward who are advising the company. The brothers already hold a 32.5 percent stake in PBR, MEN notes. PBR, which is listed on Aim, asked for its shares to be suspended in December, the Scotsman recalls. Premium Bars & Restaurants plc -- http://www.pbr.uk.com/-- is a leisure company incorporated in the UK in 1997. The company has a diverse portfolio of over 50 bars, restaurants and clubs in the UK, as well as two hotels, The Waterside on Newcastle's quayside and The Rex in Whitley Bay. Its bars and restaurants trade under the names of The Living Room, Prohibition Bar & Grill and Bel and The Dragon. PUNCH TAVERNS: Mulls GBP350 Million Placing to Ease Debt Burden --------------------------------------------------------------- Graham Ruddick at Telegraph.co.uk reports that Punch Taverns plc is to use a GBP350 million placing as it attempts to cut its GBP4.5 billion debt burden. According to the report, the capital raising will be 50pc a firm placing and 50pc an open offer of new shares. The report discloses the company will use the bulk of the proceeds to purchase GBP215 million of convertible bonds which mature on December 2010. The remaining capital, expected to be around GBP140 million, will be used to reduce other securitizations and provide significant headroom on the covenants, the report notes. The report says the GBP4.5 billion debt, which Punch racked up following the GBP2.7 billion acquisition of Spirit Group in 2006, is spread across securitizations and convertible bonds and, without the placing, the company is likely to miss covenant limits in the next financial year. The report states this would enforce some rigorous financial restrictions upon Punch that could prevent the repayment of the 2010 bond. "Success removes the refinancing issue but debt remains perilously high. There are some signs of trading stabilization but the underlying problems remain: too many sub-standard tenanted pubs and a managed pub division performing below par," the report quoted Nigel Parson, an analyst at Evolution Securities, as saying. About Punch Taverns Punch Taverns plc -- http://www.punchtaverns.com/-- is a pub company in the UK, with over 8,400 pubs across its leased and managed portfolio. SIGNLEASE LTD: Creditors Approve CVA Proposal --------------------------------------------- Creditors of Signlease Ltd, East Yorkshire caravan retailer Discover Leisure plc's main trading subsidiary, approved the company's Company Voluntary Arrangement (CVA) at a creditors' meeting in Leeds on Monday, June 15. Mark Firmin, Restructuring Partner, KPMG in Leeds and CVA Nominee said: "I am very pleased that the CVA proposal has been approved by 99.7 per cent of the company's creditors. This high level of support indicates that the proposal struck the right balance between meeting the needs of the company and those of its creditors, which are expected to receive a dividend of approximately 22p in the pound; significantly more than would have been available to them through an administration. "This result allows the business to remain a going concern, to keep trading and to continue the restructuring it began some time ago, offering job security to 300 employees and some certainty to its other stakeholders. "This is the second proposal in the North that we have successfully advised on recently, after JJB became the first plc to implement a CVA last month. The growing use of CVAs in this wave of restructuring activity shows that alternatives to entering administration are achievable. Indeed a head of steam is building behind moves to reform the insolvency regime, as announced in the Budget, with the insolvency practitioner community calling for change that would enable the increased use of CVAs. "We expect to see further fall out in the leisure sector in the UK over the summer. In spite of the growing trend for so-called 'stay-cations', consumers are pulling a tight rein on discretionary spending; having far-reaching consequences on the financial stability of the many and varied businesses in the leisure sector, from hotels to caravan retailers." WEST BROMWICH: Moody's Changes Outlook on 'E+' BFSR to Stable ------------------------------------------------------------- Moody's Investors Service changed the outlook on the E+ bank financial strength rating of West Bromwich Building Society to stable from negative. At the same time, Moody's affirmed West Brom's Baa3/Prime-3 long- and short-term debt and deposit ratings and Ca junior subordinated debt rating, and downgraded the entity's subordinated debt rating to Ca from Caa3. Moody's rating action follows West Brom's announcement of a proposed issuance of profit participating deferred shares -- a debt-to-equity swap whereby West Brom's existing subordinated debt of GBP182.5 million would be converted on a par-for-par basis to core Tier 1 capital. Agreement has already been reached by the society with its sub-debt investors and the society expects completion of the transfer in July 2009. PPDS will rank pari passu with existing PIBS in a liquidation scenario and also have principal writedown features on a going- concern basis, which effectively places the holders of PPDS in a more junior position than the holders of PIBS. The payments on PIBS, however, which do not allow principal writedowns, will be capped by the dividend payments on PPDS. Moody's expects the proposed transaction to improve West Brom's overall capital adequacy, with its Tier 1 ratio to increase to 11.6% from 6.8%. Commenting on the rating action Moody's noted that West Brom's proposed recapitalisation is first and unique in the UK mutual sector and offers building societies an alternative source of capital in light of their limitation to raise equity as mutual entities. However, this transaction is considered as a "distressed exchange" by Moody's since under an alternative scenario of the society's break-up the subordinated debt investors would be faced with a low level of recovery on their investment. Although the proposed transaction will improve West Brom's loss absorption capacity Moody's considers that there are significant risks to its financial fundamentals stemming from the society's existing loan portfolio. West Brom's BFSR of E+ reflects the high loss expectations from its commercial and buy-to-let portfolio. The proposed transaction mitigates some of these pressures to the extent of stabilizing its BFSR rating at the current level, as reflected in the changed outlook. In Moody's analysis, however, the society still faces substantial provisioning needs and deteriorating asset quality trends in the context of declining house prices. West Brom's objectives to de-risk the balance sheet and restructure its commercial lending portfolio remain outstanding tasks that are still to produce tangible results. Faced with these challenges Moody's consider that West Brom's BFSR should remain in the E+ category. On the other hand due to the fact that West Brom's debt and deposit ratings already incorporates a high degree of systemic support, which was evidenced by the regulators' consent on the proposed transaction, its long-term ratings remains on a stable outlook. As noted in Moody's previous rating action on the UK Building societies, debt and deposit ratings continue to take into account the probability of systemic support and are in line with Moody's expectation that deposit-taking institutions in highly rated countries would receive or were likely to receive support depending on their level of systemic importance. Therefore, no senior debt or deposit ratings have been downgraded below Baa3. The downgrade of the subordinated debt to Ca from Caa3 reflects its distressed conversion into higher-risk PPDS instruments and pari passu ranking with the PIBS. The downgrade to Ca is based on the future expected loss recovery approach and indicates a recovery level of 30%-50%. Moody's expects the rating to be withdrawn on completion of the transaction. Below are some of the key points of the PPDS terms and conditions: -- PPDS are non-cumulative perpetual voting shares. However, their voting power is diluted by the large number of society members (depositors and mortgage holders) who are also eligible to vote; -- in the event of a net loss by the society, the PPDS absorb 25% of that losses (the principal is written down), while the other 75% is absorbed by reserves; -- PPDS can also continue to absorb losses from previous periods - i.e. no dividend is payable until their principal value is restored to par; and -- in the event of a net profit, the directors, at their discretion, can return to the PPDS holders up to25% of profit through dividends, with the remainder going to retained earnings. Previous Rating Action and Principal Methodologies On April 14, 2009, Moody's Investors Service took ratings action on the U.K. mortgage lenders. The rating actions reflected Moody's concern that the economic crisis in the U.K would lead to significantly higher credit losses than previously anticipated, particularly among the residential and commercial real estate assets, to which the U.K. mortgage lenders have a highly concentrated exposure to. In addition, the subordinated and hybrid securities of the same institutions were downgraded in line with Moody's concern that systemic support may not be extended to these instruments in the case of financial distress. The West Brom BFSR was downgraded to E+ from C- (mapping to a BCA of B3) with a negative outlook; senior debt/deposit ratings were downgraded to Baa3 from A3 with a stable outlook; short-term ratings downgraded to P-3 from P-2; dated subordinated debt and junior subordinated debt were downgraded to Caa3; PIBS were downgraded to Ca. These Ratings Were Affected: -- The outlook on the Bank financial strength of E+ was changed to stable from negative -- Long term bank deposits affirmed at Baa3 -- Senior unsecured affirmed at Baa3 -- Subordinate debt downgraded from Caa3 to Ca -- PIBS affirmed at Ca -- Short-term debt affirmed at Prime-3 West Bromwich Building Society is based in West Bromwich, United Kingdom and had total assets of GBP9.2 billion as of March 31, 2009. ********* 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, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *