TCREUR_Public/090715.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, July 15, 2009, Vol. 10, No. 138

                            Headlines

A U S T R I A

ANAHEIM-MAYBRITT HANDEL: Claims Filing Deadline is July 29
B.S. GMBH: Creditors Must File Claims by July 29
KRISCHKE GMBH: Claims Filing Deadline is July 27
WEISSENSTEINER FAHRZEUGEINRICHTUNGEN: Claims Filing Ends July 29
WEISSENSTEINER MARIO: Creditors Must File Claims by July 29


C Z E C H   R E P U B L I C

* CZECH REPUBLIC: First Half 2009 Insolvency Petitions Rose 58%


F R A N C E

NEW FABRIS: Workers Threaten to Blow Up Factory Over Pay Dispute


G E R M A N Y

GENERAL MOTORS: European Unit Sales Down 20% in Second Qtr. 2009
INFINEON TECHNOLOGIES: To Launch EUR725 Million Rights Issue
TUI AG: S&P Downgrades Long-Term Corporate Credit Rating to 'B'
WADAN SHIPYARDS: Fails to Reach Agreement w/ Stena on Two Ships


H U N G A R Y

ATHLON PENZUGYI: Files for Bankruptcy Amid PSZAF Probe
DAM 2004: Facing Liquidation; Investors Sought
HOSPINVEST: Revokes Bankruptcy Petition; Requests Liquidation


I R E L A N D

ANGLO IRISH: Moody's Reviews Junk-Rated Tier 1 Securities
ANGLO IRISH: Fitch Junks Rating on Tier 1 Debt Securities
DEKANIA EUROPE II: Fitch Junks Ratings on Three Classes of Notes
DEKANIA EUROPE III: Fitch Junks Ratings on Five Classes of Notes
DUNCANNON CRE: S&P Cuts Ratings on Two Classes of Notes to 'B'

EGRET FUNDING: Moody's Upgrades Rating on Class E Notes to 'Caa1'
ELAN CORP: To Delist From LSE Over Low Trading Volume


I T A L Y

ARES FINANCE: S&P Retains Watch Negative on Two 'BB'-Rated Notes
BANCA MB: Put Under Bankruptcy Protection, Bank of Italy Says
BANCA POPOLARE: Fitch Affirms Individual Rating at 'D/E'


K A Z A K H S T A N

AGRARIAN CREDIT: Moody's Downgrades Issuer Ratings to 'Ba1'
BIRLIK OJSC: Creditors Must File Claims by July 24
DAULET JSC: Creditors Must File Claims by July 24
HOUSE CONSTRUCTION: Moody's Keeps E+ Bank Financial Strength Rtng.
KAZ PROM: Creditors Must File Claims by July 24

KAZAGROFINANCE: Moody's Downgrades Issuer Ratings to 'Ba1'
KAZAKHSTAN MORTGAGE: Moody's Cuts Local Cur. Issuer Rating to Ba2
KEY STROY: Creditors Must File Claims by July 24
ZERNOVOY ALLIANCE: Creditors Must File Claims by July 24


K Y R G Y Z S T A N

AGRO SNUB: Creditors Must File Claims by August 7


L U X E M B O U R G

STANTON CDO: S&P Junks Ratings on Seven Classes of Notes


M O L D O V A

INVESTPRIVATBANK: Deposits Transferred to Banca de Economii


N E T H E R L A N D S

FORTIS NV: S&P Keeps 'BB/B' Counterparty Credit Ratings
JUBILEE CDO: Moody's Cuts Rating on EUR9MM Class B Notes to 'Ba1'
NXP BV: S&P Downgrades Long-Term Corporate Credit Rating to 'SD'


R U S S I A

GAZPROM OAO: S&P Assigns Short-Term Corporate Credit Rating
NGS-STROY LLC: Creditors Must File Claims by July 26
ROS-DON-STROY LLC: Creditors Must File Claims by July 26
SAMIR WOOD: Creditors Must File Claims by July 26
STROY-GRAD CJSC: Creditors Must File Claims by July 26


S P A I N

AFIRMA GRUPO: Wants to Conclude Debt Refinancing by July 31
BBVA RMBS 8: Moody's Assigns (P)'Ba2' Rating on Series C Notes
SYNCORA GUARANTEE: S&P Gives Stable Outlook on Autovia Debt Rating


S W I T Z E R L A N D

4-LEAF CLOVER: Creditors Must File Claims by July 30
LOKALRADOI AG: Claims Filing Deadline is July 31
NUFATECH GMBH: Creditors Must File Claims by July 20
UBS AG: Miami Judge Delays Hearing on US Tax Authority's Case


T U R K E Y

IS FINANSAL: Fitch Affirms 'BB' Long-Term Issuer Default Rating
TURKIYE IS: Fitch Affirms Long-Term Issuer Default Rating at 'BB'


U N I T E D   K I N G D O M

ALBURN REAL: S&P Cuts Ratings on Four Classes of Notes to Low-B
BRITISH AIRWAYS: Pilots Accept 2.6% Pay Cut, Balpa Says
CANARGO ENERGY: Oslo Bors to Delist Shares from Trading
CANTERBURY EUROPE: In Administration; 72 Jobs Affected
CARLISLE CASTLE: S&P Assigns 'BB' Rating on Class D Notes

DIADORA UK: In Liquidation; Football Contract Terminated
FOUR SEASONS: Halts Sale After Credit Suisse Defer Debt Payment
GMAC RFC: Fitch Junks Ratings on Two Tranches
KEYDATA INVESTMENT: Chief Executive Lent US$3.25MM to David Elias
LEHMAN BROTHERS: PwC Recovers US$8.7-Bil. for U.K. Units

LLOYDS BANKING: UKFI Says Early Sale of 43% Stake Not an Option
LONDON WELSH: Has Until Friday to Secure Sale
MG ROVER: Former Owners Probed for Allegedly Undervaluing Assets
MONEX LIMITED: In Administration; Vantis Appointed
QUORN BUSINESS: Sold to Meon Valley; 25 Jobs Secured

ROYAL BANK: UKFI Says Early Sale of 70% Stake Not an Option


U Z B E K I S T A N

AGROBANK OJSC: Fitch Affirms Individual Rating at 'D/E'
ASAKA BANK: Fitch Affirms 'B' Long-Term Issuer Default Rating
UZPROMSTROYBANK: Fitch Upgrades Issuer Default Rating to 'B'

* Fitch Says European Building Sector Outlook Still Negative
* S&P Takes CreditWatch Actions on 141 European CDO Tranches


                         *********


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


ANAHEIM-MAYBRITT HANDEL: Claims Filing Deadline is July 29
----------------------------------------------------------
Creditors of Anaheim-Maybritt Handel GmbH have until July 29,
2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 12, 2009 at 10:30 a.m. on.

For further information, contact the company's administrator:

         Kurt Bernegger
         Jaquingasse 21
         1030 Wien
         Austria
         Tel: 01/799 15 80
         Fax: 01/796 59 14
         E-mail: kanzlei@bernegger-wt.com


B.S. GMBH: Creditors Must File Claims by July 29
------------------------------------------------
Creditors of B.S. GmbH have until July 29, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 12, 2009 at 10:50 a.m.

For further information, contact the company's administrator:

         Dr. Alexander Schoeller
         Landstrasser Hauptstrasse 1/2
         1030 Wien
         Austria
         Tel: 713 44 33, 713 34 05
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at


KRISCHKE GMBH: Claims Filing Deadline is July 27
------------------------------------------------
Creditors of Krischke GmbH have until July 27, 2009 to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 10, 2009 at 10:00 a.m.

For further information, contact the company's administrator:

         Dr. Johannes Jaksch
         Landstrasser Hauptstrasse 1/2
         1030 Wien
         Austria
         Tel: 713 44 33
         Fax: 713 10 33
         E-mail: kanzlei@jsr.at


WEISSENSTEINER FAHRZEUGEINRICHTUNGEN: Claims Filing Ends July 29
----------------------------------------------------------------
Weissensteiner Fahrzeugeinrichtungen GmbH will convene a meeting
of its creditors at 13.45 p.m. on July 22, 2009, at Land Court of
Leoben, hall 4/1st floor.

Creditors of Weissensteiner Fahrzeugeinrichtungen GmbH have until
July 29, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 12, 2009 at 12:30 p.m.

For further information, contact the company's administrator:

         Dr. Michael Kropiunig
         Max-Tendler-Strasse 28
         8700 Leoben
         Austria
         Tel: 03842-45657
         Fax: 03842-45019-30
         E-mail: office@ra-kropiunig.at


WEISSENSTEINER MARIO: Creditors Must File Claims by July 29
-----------------------------------------------------------
Creditors of Weissensteiner Mario have until July 29, 2009 to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 12, 2009 at 12:30 p.m. at:

         Land Court of Leoben
         Hall 4
         First Floor
         Leoben
         Austria

For further information, contact the company's administrator:

         Dr. Michael Kropiunig
         Max-Tendler-Strasse 28
         8700 Leoben
         Austria
         Tel: 03842-45657
         Fax: 03842-45019-30
         E-mail: office@ra-kropiunig.at


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


* CZECH REPUBLIC: First Half 2009 Insolvency Petitions Rose 58%
---------------------------------------------------------------
CTK reports that according to Creditreform, the number of
insolvency petitions filed in the Czech Republic increased by
nearly 58% to 4,021 in the first half of the year, compared to a
year earlier.

CTK relates Creditreform said as many as 891 insolvency petitions
were filed in June alone, the highest number in a single calendar
month in the history of the insolvency register.

According to CTK, the number of insolvency petitions for legal
entities jumped by 87 percent.  CTK discloses 442 insolvency
petitions for legal entities were rejected due to formal
shortcomings, 746 companies were declared bankrupt and 845
petitions were turned down due to too low assets of the debtors.

"The increase in the number of companies incapable of paying their
debts is an obvious consequence of the economic recession in the
Czech Republic as well as a result of the long-lasting secondary
insolvency of a number of domestic companies," CTK quoted Economic
Chamber president Petr Kuzel as saying.


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


NEW FABRIS: Workers Threaten to Blow Up Factory Over Pay Dispute
----------------------------------------------------------------
Laurence Frost at Bloomberg News reports that fired workers at
bankrupt French auto-industry supplier New Fabris threatened to
blow up their factory along with parts for Renault SA and PSA
Peugeot Citroen worth millions of euros if the carmakers don’t
meet demands for severance pay.

Bloomberg relates Guy Eyermann, the plant's works-council
secretary and an official of the Confederation Generale du Travail
union, said the employees are occupying the factory and plan to
ignite gas canisters at the plant in Chatellerault, western
France, if its two main clients don’t pay EUR30,000 (US$42,000) by
July 31 to each of the 366 workers.  The CGT, Bloomberg says, is
pressing each carmaker to pay EUR5.5 million to cover the
severance demands.

Australian Associated Press says the New Fabris workers claim
Renault and PSA paid about EUR30,000 to 200 workers laid off from
another supplier, the aluminium specialist Rencast.

Bloomberg discloses AFP, citing an official at a government office
in the Vienne region, said a workers' delegation from the
Chatellerault plant will on July 20 meet with Industry Minister
Christian Estrosi or his chief of staff.

Fabris supplies a wide range of parts to Peugeot and Citroen.  It
was declared bankrupt on June 16.  Fabris, founded in 1947 by
brothers Eugene and Quentin Fabris, used to make sewing machine
parts.  It branched out into the auto sector, employing up to 800
workers in the 1990s.


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


GENERAL MOTORS: European Unit Sales Down 20% in Second Qtr. 2009
----------------------------------------------------------------
John Reed at The Financial Times reports that General Motors
Corp.'s European unit said its second-quarter sales fell 20 per
cent.

According to the FT, GM Europe sold 471,823 vehicles in the second
quarter, and claimed a market share of 9.2 per cent.

"Due to the deepest economic crisis since the Great Depression,
which strongly impacted the automotive business, GM sales were
down 20 per cent in the region, compared to a decline of 18 per
cent for the industry," GM Europe said in a statement, according
to the FT.

The FT says Opel's sales in Germany were up 45 per cent, making
the second quarter the brand's best since 2000.  Germany's
EUR5 billion (US$6.9 billion) scrappage scheme has helped keep
Opel -– the core of GM's European business –- afloat through the
industry's severe sales downturn and its U.S. parent's trip
through bankruptcy, the FT notes.

                       About General Motors

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

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

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

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  The Honorable Robert E. Gerber presides over the
Chapter 11 cases.  Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts.  Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors'
restructuring officer.  GM is also represented by Jenner & Block
LLP and Honigman Miller Schwartz and Cohn LLP as counsel.

Cravath, Swaine, & Moore LLP is providing legal advice to the GM
Board of Directors.  GM's financial advisors are Morgan Stanley,
Evercore Partners and the Blackstone Group LLP.

General Motors changed its name to Motors Liquidation Co.
following the sale of its key assets to a company 60.8% owned by
the U.S. Government.

Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


INFINEON TECHNOLOGIES: To Launch EUR725 Million Rights Issue
------------------------------------------------------------
Sonja Cheung and Philipp Grontzki at Dow Jones Newswires report
that Infineon Technologies AG Friday said it would raise up to
EUR725 million in a rights issue.

Infineon, Dow Jones discloses, will issue up to 337 million new
shares with a subscription price of EUR2.15 a share, while
New-York-based financial investor Apollo Global Management LLC,
the majority shareholder in the company, has agreed to acquire up
to 326 million new, unsubscribed shares, subject to certain
conditions, effectively underwriting the placement.

According to Dow Jones, with the rights issue, Infineon can repay
convertibles and bonds with a total value of around EUR570 million
that mature next summer.

                            Wireline

As reported in the Troubled Company Reporter-Europe on July 9,
2009, Bloomberg News said Infineon agreed to sell its Wireline
Communications business to an affiliate of San Francisco-based
Golden Gate Capital Corp. for EUR250 million or US$348 million.
According to Bloomberg, Infineon, which has posted losses in nine
straight quarters after being hit by a slumping demand for chips,
said the deal will "significantly improve" its financial
situation.

                     About Infineon Technologies AG

Headquartered in Neubiberg, Germany, Infineon Technologies AG
(FRA:IFX) -- http://www.infineon.com/-- is a semiconductor
company.  It designs, develops, manufactures and markets a range
of semiconductors and complete systems solutions used in a variety
of microelectronic applications, including computer systems,
telecommunications systems, consumer goods, automotive products,
industrial automation and control systems, and chip card
applications.  Its products include standard commodity components,
full-custom devices, semi-custom devices and application-specific
components for memory, analog, digital and mixed-signal
applications.  The Company has operations, investments and
customers located in Europe, Asia and North America.  Its core
business is conducted through its Automotive, Industrial &
Multimarket segment, and its Communication Solutions segment.  Its
memory products business is conducted through its majority owned
subsidiary, Qimonda AG.  In April 2008, LSI Corporation purchased
the assets of the hard disk drive semiconductor business of
Infineon.


TUI AG: S&P Downgrades Long-Term Corporate Credit Rating to 'B'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered to 'B'
from 'B+' its long-term corporate credit rating on German tourism
and shipping group TUI AG.  At the same time, the senior unsecured
debt ratings on TUI were lowered to 'B-' from 'B' and the junior
subordinated debt rating was lowered to 'CCC' from 'CCC+'.  All
ratings were placed on CreditWatch with negative implications.
The recovery rating on the senior unsecured debt is unchanged at
'5', indicating S&P's expectation of modest (10%-30%) recovery in
the event of a payment default.  The recovery rating on the
subordinated debt is unchanged at '6', indicating S&P's
expectation of negligible (0%-10%) recovery in a payment default.

The one-notch downgrade reflects S&P's expectation that weak
shipping markets are continuing to adversely affect operating
performance at TUI's 43%-owned associate Hapag-Lloyd AG.  In its
first quarter earnings, released on May 11, 2009, TUI reported
that container shipping revenues fell 22.9% in the first quarter
of 2009 (compared with the first quarter of 2008) on transport
volumes down 15% and freight rates down 14.4%.  Given continuing
declines in freight rates since the first quarter, S&P anticipates
that HL's second-quarter operating cash flows will likely be
weaker when results for the TUI group are announced on August 13,
2009.

TUI sold 56.67% of HL to the Albert Ballin consortium on March 23,
2009, leaving it with 43.33%.  At the same time, TUI agreed a
total of about EUR1.45 billion in shareholder loans to HL to fund
the transfer of various shipping and container assets.  A large
majority of these loans, which are currently due between March
2010 and December 2012, are on an unsecured basis.  If the current
weakness in shipping market conditions proves to be prolonged, S&P
believes that HL could have difficulties servicing and repaying
this debt.

The CreditWatch placement with negative implications reflects the
announcement on July 8, 2009, by TUI AG and HL's other
shareholders, the Hamburg-based consortium Hamburgische
Seefahrtsbeteiligung "Albert Ballin" GmbH & Co. KG, that they have
agreed to submit proposals for capital and financing measures to
secure HL's long-term future.  TUI's supervisory board confirmed
on July 10, 2009, that it is willing to provide pro rata support
to HL, with specific proposals to be discussed further among its
shareholders.  It remains unclear what level of additional debt or
equity financing HL may eventually receive.

Standard & Poor's aims to resolve the CreditWatch placement
following further discussions with TUI group management and once
further details are available about HL's trading performance and
any proposed capital restructuring.  Any material margin weakening
in the tourism business over the key summer season would be
ratings-negative.  Although TUI currently benefits from
significant cash balances at the group level, its ability to meet
its own medium-term obligations would be severely constrained by
any payment default by HL, given TUI's substantial unsecured
credit exposure to HL.  Standard & Poor's notes that weaknesses in
disclosure and transparency, difficult minority shareholder
relationships, and a complex financial and covenant structure at
the holding company level could all add to the operational
difficulties posed by the continuing weakness in global shipping
markets.


WADAN SHIPYARDS: Fails to Reach Agreement w/ Stena on Two Ships
---------------------------------------------------------------
Robert Wright at the Financial Times reports that Marc Odebrecht,
the insolvency manager for Wadan Yards' German facilities, failed
to reach agreement with Sweden's Stena Line on completing two
vessels currently under construction.

The FT relates Mr. Odebrecht, who has been in charge of the Wismar
and Warnemuende yards since they sought bankruptcy protection in
June, said Friday that he had secured EUR190 million (US$266
million) of bankruptcy financing to allow work on the remaining
uncompleted ships to continue, with 90 per cent of the money
guaranteed by Germany's federal government and the remainder by
banks.  According to the FT, Stena Line however insisted there
remained no agreement over what to do about completing the ships.

Wadan Yards Group AS -- http://www.wadanyards.com/-- a
multinational maritime engineering and construction group
comprising leading German and Ukrainian ship yards.  The group
specializes in advanced marine solutions for hydrocarbon
exploration, production and transportation, particularly for
Arctic conditions.


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H U N G A R Y
=============


ATHLON PENZUGYI: Files for Bankruptcy Amid PSZAF Probe
------------------------------------------------------
Hungarian quick-loan company Athlon Penzugyi filed for bankruptcy
on July 8 amid a probe by financial-market regulator PSZAF into
its operations, MTI-ECONEWS reports, citing business daily Napi
Gazdasag.

Athlon lost HUF473 million (EUR1.72 million) in 2007, the report
discloses.

Provident and Kape, which also offer short-term loans at very high
cost, are subject of a similar investigation by PSZAF.

Napi Gazdasag said the companies, has been increasingly criticized
in the past months, and Hungary's Competition Office (GVH) and the
National Labor Protection and Labor Affairs Authority (OMMF) had
reportedly launched procedures against Provident.


DAM 2004: Facing Liquidation; Investors Sought
----------------------------------------------
Zoltan Simon at Bloomberg News reports that MTI state-run
newswire, citing labor union chief Jozsef Agotai, said DAM 2004
Kft is facing liquidation.

Bloomberg relates MTI said the company, which suspended production
in December 2008, will shed 704 jobs at its plant in the
northeastern city of Diosgyor, retaining as few as 15 employees.

According to Bloomberg, the newswire reported liquidator Ildiko
Perpek said she is seeking investors for the plant, where
production can be restarted within two months.

Based in Diosgyor, Hungary, DAM 2004 Kft is a steelmaker currently
owned by Swiss-Ukrainian consortium Donbass.


HOSPINVEST: Revokes Bankruptcy Petition; Requests Liquidation
-------------------------------------------------------------
MTI-ECONEWS reports that shareholders of Hospinvest decided on
Friday to revoke its claim for bankruptcy protection and request
liquidation a day after the third of the five hospitals it used to
operate announced the cancellation of its contract.

The liquidator, the report says, will finance the hospitals for
the duration of the process.

Hospinvest, the report relates, filed for bankruptcy protection in
April after its bank paid off late loans from money transferred by
the National Health Fund.  The report discloses Hospinvest
chairman Gabor Kollanyi said the company went bankrupt as a result
of the crisis in healthcare finance and the global economic
downturn.

Founded in 2000, Hospinvest is a privately owned company set up to
operate state-owned hospitals in Hungary.


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


ANGLO IRISH: Moody's Reviews Junk-Rated Tier 1 Securities
---------------------------------------------------------
Moody's Investors Service placed on review for possible downgrade
the Tier 1 securities of Anglo Irish Bank (with the exception of
the non-cumulative preference shares with voting rights that are
rated C).  The bank's cumulative tier 1 securities are rated Caa1
and the bank's non-cumulative Tier 1 securities are rated Caa3,
all with a negative outlook.

On July 9 Anglo Irish Bank Ltd (Anglo, rated A3/P-1/E) announced
that as a condition of approving the Irish Government's
recapitalization of the bank the European Commission requires that
no further coupon payments be made on any of the Bank's Tier 1
Securities.  Moody's understands that there has not been any
guidance from the EC on when payments will be able to resume,
however Moody's expects that this is unlikely to happen until the
bank has returned to profitability.  However, given the current
situation of the bank and the difficult economic environment
Moody's would not expect this to happen in the short -- to medium
term, although Moody's note that a substantial portion of its loan
portfolio will be transferred to the National Asset Management
Agency and this may speed up this process.  Moody's also note
that, depending on the value of the assets which will be
transferred, this could also lead to a further capital
requirement.  Moody's is also of the opinion that continuing
government support is likely to be required to give the bank
sufficient flexibility to restructure and establish a viable
business model again.

In addition the bank has announced that it is considering a
buyback offer for the Tier 1 securities, as well as for one junior
subordinated security and one dated subordinated security.  This
is still subject to regulatory and shareholder approvals.  Given
that the bank has, as detailed above, already announced that
coupons will be omitted on both cumulative and non-cumulative Tier
1 securities, any offer to buyback these Tier 1 instruments is
likely to be classed as a "distressed exchange" by Moody's.  The
securities are currently trading at a large discount to their par
value and therefore Moody's expects that potential losses to
investors who choose to accept the offer will be substantial.  The
review for possible downgrade will therefore focus on the likely
losses for investors assuming the offer goes ahead.

The current Caa1 and Caa3 ratings on the cumulative and non-
cumulative Tier 1 securities are based on an expected loss
approach that already assumed a high probability of the omission
of coupons and high loss severity over a three-year period.
However they do not incorporate the potential larger loss as a
result of the potential buyback offer and the likelihood of being
classed as a distressed exchange by Moody's.

The dated subordinated and junior subordinated issues that are
likely to be part of the buyback are unlikely to be classed as a
"distressed exchange" by Moody's and therefore the ratings are
affirmed at Baa1 and B3.

The last rating action on Anglo was on July 7, 2009 when the
senior debt guaranteed by the Irish government was downgraded to
Aa1 (negative outlook) from Aaa (review for possible downgrade).

The detailed ratings and actions are listed below:

Anglo Irish Bank Corporation Ltd:

* Cumulative Tier 1 securities placed on review for possible
  downgrade.

* Non-cumulative Tier 1 securities placed on review for possible
  downgrade.

Anglo Irish Bank had total assets of EUR88.5 billion at end-March
2009.  The bank is headquartered in Dublin, Ireland.


ANGLO IRISH: Fitch Junks Rating on Tier 1 Debt Securities
---------------------------------------------------------
Fitch Ratings has downgraded Anglo Irish Bank Corporation's
(Anglo) tier 1 debt securities to 'C' from 'B-' and removed them
from Rating Watch Negative.  All other ratings of Anglo are
affirmed by the agency.

The rating action follows the recent announcement by the bank that
it will defer coupon payments on all its tier 1 securities
following a requirement by the European Commission.  The
requirement is linked to the Irish Government's recapitalization
of Anglo.

Holders of senior and dated subordinated debt remain protected by
a guarantee provided by the Irish government until end-September
2010.

The securities affected are:

Tier 1

  -- GBP200 million (ISIN XS0131475666)

  -- GBP250 million (ISIN XS0151811253)

  -- GBP350 million (ISIN XS0292425344)

  -- EUR600 million (ISIN XS0268814125)

  -- Upper tier 2 debt rating: 'B' remains on Rating Watch
     Negative

Anglo's other ratings are affirmed:

  -- Long-term Issuer Default (IDR): 'A-'; Outlook Stable
  -- Short-term IDR: 'F1+'
  -- Individual rating: 'F'
  -- Support rating: '1'
  -- Support Rating Floor: 'A-'
  -- Subordinated debt rating: 'BBB+'


DEKANIA EUROPE II: Fitch Junks Ratings on Three Classes of Notes
----------------------------------------------------------------
Fitch Ratings has downgraded two European collateralized debt
obligations backed primarily by subordinate debt and perpetual
preferred securities issued by insurance companies and to a lesser
extent banks and finance companies.

In addition to the downgrades, Fitch has assigned Rating Outlooks
and Loss Severity ratings to the notes rated 'B' and higher:

Dekania Europe CDO II p.l.c.

  -- EUR163,538,808 class A1 to 'AA' from 'AAA'; placed on Rating
     Watch Evolving;

  -- EUR25,000,000 class A2-A to 'BBB/LS4' from 'AAA'; Outlook
     Negative;

  -- EUR5,000,000 class A2-B to 'BBB/LS4' from 'AAA'; Outlook
     Negative;

  -- EUR26,000,000 class B to 'BB/LS4' from 'AA'; Outlook
     Negative;

  -- EUR27,752,046 class C to 'B/LS5' from 'A'; Outlook Negative;

  -- EUR12,389,306 class D1 to 'CCC' from 'BBB';

  -- EUR1,982,289 class D2 to 'CCC' from 'BBB';

  -- EUR11,893,734 class E to 'CC' from 'BB'.

Dekania Europe CDO III p.l.c. (Dekania III)

  -- EUR179,820,883 class A1 to 'BB/LS3' from 'AAA'; Outlook
     Negative;

  -- EUR16,000,000 class A2-A to 'B/LS4' from 'AAA'; Outlook
     Negative;

  -- EUR12,000,000 class A2-B to 'B/LS4' from 'AAA'; Outlook
     Negative;

  -- EUR24,000,000 class B to 'CCC' from 'AA-';

  -- EUR18,544,409 class C to 'CCC' from 'A';

  -- EUR12,200,269 class D to 'CC' from 'BBB';

  -- EUR7,808,172 class E to 'CC' from 'BBB-';

  -- EUR3,801,441 class F to 'CC' from 'BB-'.

The rating actions primarily reflect the rating review methodology
described in the press release 'Fitch Revises Criteria For
Reviewing U.S. CDOs Backed by Bank & Insurance TruPS' dated
March 25, 2009.  More specifically, the rating actions incorporate
the impact of the first-time application of Fitch's Portfolio
Credit Model to evaluate the pool of bank and insurance corporate
assets supporting the CDO notes.  The PCM is Fitch's main
analytical tool used to determine default, recovery and loss rates
for portfolios of corporate debt.  The PCM correlation framework
captures the risk of industry and sector concentrations, a
prevalent characteristic of bank and insurance TruPS CDOs, as well
as regional and country concentrations.  The application of PCM
resulted in increased rating loss rates for the highly
concentrated bank and insurance portfolios.  The elevated rating
loss rates translated into insufficient credit enhancement to
support existing ratings, which resulted in the downgrades.

Fitch's rating actions are also based on observed deterioration of
the underlying collateral, particularly those credits that are
backed by banks and finance companies.  Approximately 26% and 55%
of the portfolios of Dekania Europe II and III, respectively,
consist of bank and finance companies which contributed to the
decline in credit quality.  The weighted average rating of both
portfolios declined from 'BBB-/BB+' at close to 'BB+/BB' for
Dekania II and from 'BB+/BB' to 'BB/BB-' for Dekania III.
Additionally, the percentage of the portfolio currently treated as
'CCC' or below by Fitch is 7.28% and 10.59% for Dekania II and
III, respectively.

Both transactions are also invested in deeply subordinated
perpetual preferred securities up to their maximum allowable
buckets of 20% for Dekania II and 40% for Dekania III.  Recovery
given default for perpetual preferred securities is expected to be
negligible.  To date, Dekania Europe II and III have experienced
one observed default by an Icelandic bank, each totaling
EUR12 million or 3.97%, respectively.

Assured Guaranty provides a primary wrap for the class A1 notes of
Dekania Europe II.  On May 4, 2009 Fitch downgraded the Insurer
Financial Strength rating of Assured Guaranty Corp. to 'AA' from
'AAA' and placed it on Rating Watch Evolving.  The rating on the
Dekania Europe II class A1 notes has an unenhanced rating in the
'A' category.  The unenhanced rating category is based on the
quality of the underlying collateral as well as available credit
enhancement to the tranches.  Pending final resolution of the
Evolving Rating Watch on Assured Guaranty's IFS rating, Fitch may
shift its rating of the class A1 tranche to the higher of the
unenhanced rating or the financial guarantor IFS rating.

CIFG Europe provides a primary wrap for the class A1 notes of
Dekania Europe III.  On Oct. 21, 2008 Fitch withdrew the IFS
rating of CIFG Europe.  The rating on Dekania Europe III class A1
notes reflects the unenhanced rating based on the analysis of the
underlying collateral and the credit enhancement available to the
tranche.

In conjunction with the downgrades, Fitch has assigned Rating
Outlooks to the bonds rated 'B' and better to reflect the likely
direction of any rating changes over a one- to two-year period.
The Negative Rating Outlook reflects the limited ability of the
notes to absorb additional defaults, as well as Fitch's overall
negative outlook for the European insurance and banking sectors.
Future rating actions will be largely driven by performance in
terms of deferrals and defaults of the bank and insurance
companies underlying these transactions.


DEKANIA EUROPE III: Fitch Junks Ratings on Five Classes of Notes
----------------------------------------------------------------
Fitch Ratings has downgraded two European collateralized debt
obligations backed primarily by subordinate debt and perpetual
preferred securities issued by insurance companies and to a lesser
extent banks and finance companies.

In addition to the downgrades, Fitch has assigned Rating Outlooks
and Loss Severity ratings to the notes rated 'B' and higher:

Dekania Europe CDO II p.l.c.

  -- EUR163,538,808 class A1 to 'AA' from 'AAA'; placed on Rating
     Watch Evolving;

  -- EUR25,000,000 class A2-A to 'BBB/LS4' from 'AAA'; Outlook
     Negative;

  -- EUR5,000,000 class A2-B to 'BBB/LS4' from 'AAA'; Outlook
     Negative;

  -- EUR26,000,000 class B to 'BB/LS4' from 'AA'; Outlook
     Negative;

  -- EUR27,752,046 class C to 'B/LS5' from 'A'; Outlook Negative;

  -- EUR12,389,306 class D1 to 'CCC' from 'BBB';

  -- EUR1,982,289 class D2 to 'CCC' from 'BBB';

  -- EUR11,893,734 class E to 'CC' from 'BB'.

Dekania Europe CDO III p.l.c. (Dekania III)

  -- EUR179,820,883 class A1 to 'BB/LS3' from 'AAA'; Outlook
     Negative;

  -- EUR16,000,000 class A2-A to 'B/LS4' from 'AAA'; Outlook
     Negative;

  -- EUR12,000,000 class A2-B to 'B/LS4' from 'AAA'; Outlook
     Negative;

  -- EUR24,000,000 class B to 'CCC' from 'AA-';

  -- EUR18,544,409 class C to 'CCC' from 'A';

  -- EUR12,200,269 class D to 'CC' from 'BBB';

  -- EUR7,808,172 class E to 'CC' from 'BBB-';

  -- EUR3,801,441 class F to 'CC' from 'BB-'.

The rating actions primarily reflect the rating review methodology
described in the press release 'Fitch Revises Criteria For
Reviewing U.S. CDOs Backed by Bank & Insurance TruPS' dated
March 25, 2009.  More specifically, the rating actions incorporate
the impact of the first-time application of Fitch's Portfolio
Credit Model to evaluate the pool of bank and insurance corporate
assets supporting the CDO notes.  The PCM is Fitch's main
analytical tool used to determine default, recovery and loss rates
for portfolios of corporate debt.  The PCM correlation framework
captures the risk of industry and sector concentrations, a
prevalent characteristic of bank and insurance TruPS CDOs, as well
as regional and country concentrations.  The application of PCM
resulted in increased rating loss rates for the highly
concentrated bank and insurance portfolios.  The elevated rating
loss rates translated into insufficient credit enhancement to
support existing ratings, which resulted in the downgrades.

Fitch's rating actions are also based on observed deterioration of
the underlying collateral, particularly those credits that are
backed by banks and finance companies.  Approximately 26% and 55%
of the portfolios of Dekania Europe II and III, respectively,
consist of bank and finance companies which contributed to the
decline in credit quality.  The weighted average rating of both
portfolios declined from 'BBB-/BB+' at close to 'BB+/BB' for
Dekania II and from 'BB+/BB' to 'BB/BB-' for Dekania III.
Additionally, the percentage of the portfolio currently treated as
'CCC' or below by Fitch is 7.28% and 10.59% for Dekania II and
III, respectively.

Both transactions are also invested in deeply subordinated
perpetual preferred securities up to their maximum allowable
buckets of 20% for Dekania II and 40% for Dekania III.  Recovery
given default for perpetual preferred securities is expected to be
negligible.  To date, Dekania Europe II and III have experienced
one observed default by an Icelandic bank, each totaling
EUR12 million or 3.97%, respectively.

Assured Guaranty provides a primary wrap for the class A1 notes of
Dekania Europe II.  On May 4, 2009 Fitch downgraded the Insurer
Financial Strength rating of Assured Guaranty Corp. to 'AA' from
'AAA' and placed it on Rating Watch Evolving.  The rating on the
Dekania Europe II class A1 notes has an unenhanced rating in the
'A' category.  The unenhanced rating category is based on the
quality of the underlying collateral as well as available credit
enhancement to the tranches.  Pending final resolution of the
Evolving Rating Watch on Assured Guaranty's IFS rating, Fitch may
shift its rating of the class A1 tranche to the higher of the
unenhanced rating or the financial guarantor IFS rating.

CIFG Europe provides a primary wrap for the class A1 notes of
Dekania Europe III.  On Oct. 21, 2008 Fitch withdrew the IFS
rating of CIFG Europe.  The rating on Dekania Europe III class A1
notes reflects the unenhanced rating based on the analysis of the
underlying collateral and the credit enhancement available to the
tranche.

In conjunction with the downgrades, Fitch has assigned Rating
Outlooks to the bonds rated 'B' and better to reflect the likely
direction of any rating changes over a one- to two-year period.
The Negative Rating Outlook reflects the limited ability of the
notes to absorb additional defaults, as well as Fitch's overall
negative outlook for the European insurance and banking sectors.
Future rating actions will be largely driven by performance in
terms of deferrals and defaults of the bank and insurance
companies underlying these transactions.


DUNCANNON CRE: S&P Cuts Ratings on Two Classes of Notes to 'B'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative the ratings on 10 classes issued by Duncannon
CRE CDO I PLC.  At the same time, S&P removed the class E-2 notes
from CreditWatch negative.

These rating actions follow the recent placement of a number of
European CMBS tranches on CreditWatch.  Duncannon CRE CDO holds a
number of CMBS tranches at various ratings, a significant
proportion of which are now subject to ratings on CreditWatch.  In
accordance with S&P's criteria, in assessing the credit quality of
the transaction, the ratings on each of the collateral assets on
CreditWatch are assumed to be lowered by three notches.

Applying this three-notch adjustment in S&P's analysis resulted in
the downgrade of 10 classes.  S&P removed the rating on the class
E-2 notes from CreditWatch negative.

                            Ratings List

                       Duncannon CRE CDO PLC
    EUR685.68 Million Senior and Mezzanine Deferrable-Interest
                        Floating-Rate Notes

      Ratings Lowered and Removed From CreditWatch Negative

                             Rating
                              ------
          Class       To                  From
          -----       --                  ----
          X          BBB                  AA/Watch Neg
          RCF        BBB                  AA/Watch Neg
          A          BBB                  AA/Watch Neg
          B          BB                   A/Watch Neg
          C-1        B                    BBB/Watch Neg
          C-2        B                    BBB-/Watch Neg
          D-1        B-                   BB+/Watch Neg
          D-2        B-                   BB/Watch Neg
          D-3        B-                   BB-/Watch Neg
          E-1        B-                   B/Watch Neg

             Rating Removed From CreditWatch Negative

                              Rating
                              ------
          Class       To                  From
          -----       --                  ----
          E-2        B-                   B-/Watch Neg


EGRET FUNDING: Moody's Upgrades Rating on Class E Notes to 'Caa1'
-----------------------------------------------------------------
Moody's Investors Service has upgraded the rating of one class of
notes issued by Egret Funding CLO I plc:

-- EUR10,850,000 Class E Deferrable Floating Rate Notes due 2022,
    upgraded to Caa1 under Review for Possible Downgrade,
    previously on July 9, 2009, downgraded to C.

On July 13, 2009, Egret CLO I completed the repurchase and
cancellation of EUR1,400,000 of Class E Notes.  On July 9, 2009,
Moody's had downgraded the Class E Notes to C because it viewed
this repurchase of Class E Notes at a price of 25% as a distressed
exchange.

Now that the repurchase and cancellation have taken place, Moody's
is upgrading the rating of the remaining Class E Notes to the
appropriate level post-repurchase.  The impact of the repurchase
on the remaining Class E Notes rating is negligible, so the Class
E Notes are upgraded back to Caa1 under review for possible
downgrade, which was their rating before the "distressed exchange"
related downgrade.

Ultimately, the repurchase of EUR1.4 million of Class E Notes will
not, in and of itself, cause the ratings on all Classes of Egret
CLO I Notes to be worse than prior the repurchase.

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as some mezzanine loan exposures.


ELAN CORP: To Delist From LSE Over Low Trading Volume
-----------------------------------------------------
Andras Gergely at Reuters reports that Elan Corporation plc said
on Friday it would delist from the London Stock Exchange due to
low volumes.

"Having regard to the low volume of trading in the company's
ordinary shares on the London Stock Exchange, the benefits of the
London listing are minimal and the cost of its maintenance is no
longer in the interests of Elan shareholders as a whole," Reuters
quoted Elan as saying.

Reuters relates Elan said it would retain its primary Dublin
listing and a presence on the New York Stock Exchange.

Elan, as cited by Reuters, said the change in listing is due to be
effective on August 10, 2009.

                      Johnson & Johnson Deal

As reported in the Troubled Company Reporter-Europe on July 6,
2009, Johnson & Johnson and Elan reached a definitive agreement
whereby Johnson & Johnson will acquire substantially all of the
assets and rights of Elan related to its Alzheimer's Immunotherapy
Program (AIP Program), through a newly formed company.  In
addition, Johnson & Johnson, through its affiliate, will invest
US$1 billion in Elan in exchange for newly issued American
Depositary Receipts (ADRs) of Elan which will represent 18.4% of
Elan's outstanding ordinary shares.

                         About Elan Corp.

Headquartered in Dublin, Ireland, Elan Corporation, plc --
http://www.elan.com/-- is a neuroscience-based biotechnology
company.  Its principal research and development, manufacturing
and marketing facilities are located in Ireland and the United
States.  Elan's operations are organized into two business units:
Biopharmaceuticals and Elan Drug Technologies.  Biopharmaceuticals
engages in research, development and commercial activities
primarily in neuroscience, autoimmune and severe chronic pain.
EDT focuses on the specialty pharmaceutical industry, including
specialized drug delivery and manufacturing.

Elan shares trade on the New York, London and Dublin Stock
Exchanges. The gross assets attributable to the AIP Program in the
audited consolidated accounts of Elan as at December 31, 2008 were
US$63.1 million.  Costs (losses) associated with the AIP Program
in respect of the year ended December 31, 2008 were approximately
US$113 million.

                           *    *    *

As reported in the Troubled Company Reporter on July 6, 2009
Moody's Investors Service placed the ratings of Elan Corporation
plc under review for possible upgrade.  Ratings placed under
review for possible upgrade include Elan's B3 Corporate Family
Rating, the B2 Probability of Default Rating, and the B3 rating on
Elan's senior unsecured bonds.

The Troubled Company Reporter-Europe reported on July 8, 2009,
that Standard & Poor's Ratings Services said that its ratings and
outlook on Elan Corp. PLC (B/Stable/--) remain unchanged,
following the recent announcement that Johnson & Johnson, through
a newly formed company, will acquire Elan's Alzheimer's
Immunotherapy Program.


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


ARES FINANCE: S&P Retains Watch Negative on Two 'BB'-Rated Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services provided further information on
the CreditWatch negative placement on the ARES FINANCE S.r.l. and
ARES FINANCE 2 S.A. commercial mortgage-backed securities
transactions after investor requests.

The ratings remain on CreditWatch negative, where S&P initially
placed them on June 26.

The rationale for the CreditWatch placements is the approaching
legal maturity of these transactions and the effect that S&P
anticipate the current economic environment may have on recovery
timings.

Both transactions are backed by a pool of secured and unsecured
nonperforming loans originated in Italy by Banca Nazionale del
Lavoro SpA (AA-/Positive/A-1+).  In S&P's experience, collections
under NPL portfolios tend to be volatile, as they largely depend
on the recovery activity carried out by the transaction's special
servicer as well as the broader economic environment.

Archon Group Italia S.r.l./Società Gestione Crediti is the special
servicer for both transactions and has S&P's commercial and
residential special servicer ranking of "STRONG".

The CreditWatch placements reflect the uncertainty, in S&P's view,
regarding the amount of collections achievable until the legal
maturity of the rated notes.  The final legal maturity dates for
ARES FINANCE and ARES FINANCE 2 are March 2011 and July 2011,
respectively.

In resolving the CreditWatch placements for these transactions,
the factors S&P will consider include the expected timing of
distributions of proceeds, following the forced sale of the assets
or agreed out-of-court arrangements, and the short-term recovery
prospects on the outstanding assets in the NPL portfolios.

S&P currently expects to resolve the CreditWatch placements for
these transactions by September 30.

                           Ratings List

             Ratings Remaining on CreditWatch Negative

                        ARES FINANCE S.r.l.
        EUR633.20 Million Asset-Backed Floating-Rate Notes

                     Class       Rating
                     -----       ------
                     E           BBB-/Watch Neg
                     F           BB/Watch Neg

                      ARES FINANCE 2 S.A.
        EUR684.9 Million Asset-Backed Floating-Rate Notes

                     Class       Rating
                     -----       ------
                     D           A/Watch Neg
                     E           BB/Watch Neg


BANCA MB: Put Under Bankruptcy Protection, Bank of Italy Says
-------------------------------------------------------------
Steve Scherer at Bloomberg News reports that Bank of Italy said
Banca MB SpA has been put under bankruptcy protection.

Bloomberg relates administrators have been named by the central
bank.

Based in Milan, Italy, Banca MB SpA provides commercial banking
services.


BANCA POPOLARE: Fitch Affirms Individual Rating at 'D/E'
--------------------------------------------------------
Fitch Ratings is maintaining Veneto Banca Holding's Long-term
Issuer Default of 'A-' on Rating Watch Negative.  Fitch is also
maintaining the Long-term IDR 'A-' and Support rating '1' of VBH's
banking subsidiary, Banca Popolare di Intra, on RWN.  A breakdown
of rating actions is detailed below.

The Long-term IDRs of both banks were placed on RWN in January
2009 after it announced an agreement to incorporate BancApulia, a
bank based in southern Italy, into its fully owned subsidiary
bank, Banca Meridiana.

The RWN on VBH's Long-term IDR reflects existing pressure on
profitability and asset quality resulting from the weak domestic
economy, particularly as the bank is expanding operations in
central and southern Italy, by acquiring stakes in Cassa di
Risparmio di Fabriano e Cupramontana and BancApulia.  These two
acquisitions, which are still subject to regulatory approval, will
likely be completed in Q409 and Q110, respectively and will, in
Fitch's opinion, expose the bank to integration risk and to higher
credit risk in economically weaker areas of Italy.  Fitch,
however, acknowledges VBH's good record in integrating past
acquisitions.  The agency expects to resolve the RWN once details
on the impact of the planned acquisitions on the bank's risk
exposure have been made available.

At end-2008, the VBH group was able to generate an acceptable
operating return on average equity of 5.44%, after net interest
and net commission income more than offset an increase in loan and
other credit impairment charges.  However, Fitch expects that the
weak domestic economy will put pressure on the bank's ability to
generate operating revenues and result in an increase in loan
impairment charges.

At end-2008 gross impaired loans represented a relatively high 5%
of total gross loans.  A large part of this impaired exposure was
inherited in 2007 with the acquisition of BPI, which undermined
VBH's previously good asset quality ratios.  However, the bank's
net impaired loans represented a still relatively contained 18.7%
of its equity at end-2008.  As a consequence of the recession,
Fitch expects the bank's asset quality to deteriorate further.

According to VBH's estimates, the bank's end-2008 consolidated
capital ratios, including 100% of BancApulia and the proportional
consolidation of the 27% stake in CRFC, remain acceptable, with
Tier 1 and total capital ratios at 7.6% and 11.2%, respectively.
Fitch expects the bank to maintain sound capital ratios.

VBH is a cooperative bank based in the Veneto region, with a
presence in other northern and southern Italian regions and
footholds in some central and eastern European countries through
small local banks.  BancApulia is a small bank based in Apulia and
focused on retail customers.  It owns 70% of listed consumer
credit company, Apulia ProntoPrestito.  CRFC is a small savings
bank with poor asset quality based in central Italy on the
Adriatic coast.

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's individual ratings and the prospect of external support
is reflected in Fitch's support ratings.  Collectively, these
ratings drive Fitch's Long- and Short-term IDRs.

VBH

  -- Long-term IDR of 'A-' remains on RWN
  -- Short-term IDR affirmed at 'F2'
  -- Individual rating affirmed at 'C'
  -- Support rating affirmed at '3'
  -- Support Rating Floor affirmed at 'BB'.

BPI

  -- Long-term IDR of 'A-' remains on RWN
  -- Short-term IDR affirmed at 'F2'
  -- Support Rating '1' remains on RWN
  -- Individual rating affirmed at 'D/E'.


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


AGRARIAN CREDIT: Moody's Downgrades Issuer Ratings to 'Ba1'
-----------------------------------------------------------
Moody's Investors Service has downgraded the ratings of three
Kazakh government-related issuers (Kazagrofinance -- issuer rating
to Ba1 from Baa3; Agrarian Credit Corporation -- issuer rating to
Ba1 from Baa3, and Kazakhstan Mortgage Company -- issuer rating to
Ba2 from Baa3) and confirmed the ratings of one Kazakh GRI
(Development Bank of Kazakhstan -- issuer rating Baa2) and one
bank that is fully controlled by the Kazakh government (House
Construction Savings Bank of Kazakhstan -- Local currency deposit
rating Baa3).  The outlook on the five financial institutions'
issuer and deposit ratings is negative, in line with the negative
outlook on Kazakhstan's sovereign rating.

These rating actions conclude Moody's review process which was
initiated on May 22, 2009 and prompted by concerns that ongoing
stress in the nation's economy, particularly within its financial
sector, might result in the government having to become more
selective in allocation of support to its state-owned financial
institutions.

The rating agency continues to believe that the Kazakh government
will provide support to the government-owned financial
institutions given that they pursue special policy mandates and
are strategically important to the national economy.  However, the
ongoing transformations in the state economic programs and the way
in which they are accomplished have led Moody's to further
distinguish the support profiles of some of those state-owned
financial institutions as is discussed below on a name-by-name
basis.  Moody's notes that the multiple layers of control
structures and the necessity to go through budget processes for
obtaining additional financial support from the government may
cause some delays in providing systemic support.

The detailed list of rating actions concluded, and the five
affected financial institutions are:

Development Bank of Kazakhstan:

  -- Baseline Credit Assessment: unchanged in the range of 11-13;
  -- Local and foreign currency issuer ratings: confirmed at Baa2;
  -- The outlook on all of the bank's ratings is negative.

House Construction Savings Bank of Kazakhstan (HCSBK):

  -- BFSR: unchanged at E+ (mapping to a Baseline Credit
     Assessment of B2), stable outlook;

  -- Local currency deposit rating: confirmed at Baa3;

  -- The outlook on the local currency deposit rating is negative.

Kazagrofinance (KAF):

  -- Baseline Credit Assessment: confirmed at 15;

  -- Local and foreign currency issuer ratings: downgraded to Ba1
     from Baa3;

  -- Local and foreign currency short-term issuer rating:
     downgraded to Not Prime from Prime-3;

  -- The outlook on the ratings is negative.

Agrarian Credit Corporation (ACC):

  -- Baseline Credit Assessment: confirmed at 15;

  -- Local and foreign currency issuer ratings: downgraded to Ba1
     from Baa3;

  -- Local and foreign currency short-term issuer rating:
     downgraded to Not Prime from Prime-2;

  -- The outlook on the ratings is negative.

Kazakhstan Mortgage Company (KMC):

  -- Baseline Credit Assessment: lowered to 15 from 14;
  -- Local currency issuer rating: downgraded to Ba2 from Baa3;
  -- The outlook on the rating is negative.

DBK's issuer rating (Baa2) was confirmed reflecting its increasing
role in the country's strategic development, tight oversight by
national authorities and dominant position in providing long-term
investments for non-extractive industries in Kazakhstan.  DBK's
issuer rating significantly benefits from a very high probability
of systemic support, resulting in the bank's ratings being placed
at the same level as those of the Kazakhstan government bond
ratings.  At the same time, Moody's notes the risks of DBK's high
loan book concentration on largest projects and significant share
of still unseasoned greenfield investments, which could
potentially weigh on the issuer's financial performance over time.

The deposit rating of HCSBK (Baa3) was confirmed reflecting the
bank's 100% state control and its special policy mandate in the
housing sector, recently inherited from KMC.  In accordance with
HCSBK's mandate, the bank is to receive substantial cash
injections from the government in 2009-2010 in addition to
US$200 million already received in 2008.

The downgrade of the issuer ratings of KAF (to Ba1 from Baa3) and
ACC (to Ba1 from Baa3) reflects (i) the companies' increasing
dependence on the systemic support caused by the necessity to
refinance their maturing wholesale debt in the medium term, while
the access to capital markets is likely to remain tight, and (ii)
the limited range of external support mechanisms which are subject
to possible delays due to more complex bureaucratic procedures
compared to banking financial institutions.  At the same time,
Moody's believes that the agrarian sector is of significant
importance for the Kazakh government, especially in the current
economic environment.  Furthermore, the identical downgrades of
the companies' ratings indicate Moody's assessment of their
similar risk profiles as well as their equal importance for the
national economy.

The downgrade of KMC's issuer rating (to Ba2 from Baa3) reflects
the lowering of its BCA as well as the low probability of
government support incorporated into the company's issuer rating.
The lowering of the BCA stemmed from the KMC's material
refinancing risk, prompted by the imbalance between long-term
mortgage assets and high reliance on market funding, which may
potentially affect its financial fundamentals and -- most
importantly -- its liquidity profile.  At the same time, the
change in government support assumptions was triggered by the
recently reduced role of the company in supporting the housing
sector, as government spending to finance housing programs through
KMC have been discontinued.

Moody's previous rating action on the five government-owned
financial institutions was on May 22, 2009, when the rating agency
placed their issuer and deposit ratings on review for possible
downgrade.  The rating action followed the default of Astana
Finance -- another Kazakh GRI -- which had previously benefited
from 25.5% government control and letters of comfort from the
state-owned holding Samruk-Kazyna.


BIRLIK OJSC: Creditors Must File Claims by July 24
--------------------------------------------------
Creditors of OJSC Birlik have until July 24, 2009, to submit
proofs of claim to:

         Auelbekov Str. 126-75
         Kokshetau
         Akmola
         Kazakhstan

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

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Gorky Str. 37
         Kokshetau
         Akmola
         Kazakhstan


DAULET JSC: Creditors Must File Claims by July 24
-------------------------------------------------
Creditors of JSC Daulet have until July 24, 2009, to submit proofs
of claim to:

         Abylai han Str. 60-41
         Shuchinsk
         Akmola
         Kazakhstan

The Specialized Inter-Regional Economic Court of Akmola commenced
bankruptcy proceedings against the company on April 16, 2009,
after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Gorky Str. 37
         Kokshetau
         Akmola
         Kazakhstan


HOUSE CONSTRUCTION: Moody's Keeps E+ Bank Financial Strength Rtng.
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of three
Kazakh government-related issuers (Kazagrofinance -- issuer rating
to Ba1 from Baa3; Agrarian Credit Corporation -- issuer rating to
Ba1 from Baa3, and Kazakhstan Mortgage Company -- issuer rating to
Ba2 from Baa3) and confirmed the ratings of one Kazakh GRI
(Development Bank of Kazakhstan -- issuer rating Baa2) and one
bank that is fully controlled by the Kazakh government (House
Construction Savings Bank of Kazakhstan -- Local currency deposit
rating Baa3).  The outlook on the five financial institutions'
issuer and deposit ratings is negative, in line with the negative
outlook on Kazakhstan's sovereign rating.

These rating actions conclude Moody's review process which was
initiated on May 22, 2009 and prompted by concerns that ongoing
stress in the nation's economy, particularly within its financial
sector, might result in the government having to become more
selective in allocation of support to its state-owned financial
institutions.

The rating agency continues to believe that the Kazakh government
will provide support to the government-owned financial
institutions given that they pursue special policy mandates and
are strategically important to the national economy.  However, the
ongoing transformations in the state economic programs and the way
in which they are accomplished have led Moody's to further
distinguish the support profiles of some of those state-owned
financial institutions as is discussed below on a name-by-name
basis.  Moody's notes that the multiple layers of control
structures and the necessity to go through budget processes for
obtaining additional financial support from the government may
cause some delays in providing systemic support.

The detailed list of rating actions concluded, and the five
affected financial institutions are:

Development Bank of Kazakhstan:

  -- Baseline Credit Assessment: unchanged in the range of 11-13;
  -- Local and foreign currency issuer ratings: confirmed at Baa2;
  -- The outlook on all of the bank's ratings is negative.

House Construction Savings Bank of Kazakhstan (HCSBK):

  -- BFSR: unchanged at E+ (mapping to a Baseline Credit
     Assessment of B2), stable outlook;

  -- Local currency deposit rating: confirmed at Baa3;

  -- The outlook on the local currency deposit rating is negative.

Kazagrofinance (KAF):

  -- Baseline Credit Assessment: confirmed at 15;

  -- Local and foreign currency issuer ratings: downgraded to Ba1
     from Baa3;

  -- Local and foreign currency short-term issuer rating:
     downgraded to Not Prime from Prime-3;

  -- The outlook on the ratings is negative.

Agrarian Credit Corporation (ACC):

  -- Baseline Credit Assessment: confirmed at 15;

  -- Local and foreign currency issuer ratings: downgraded to Ba1
     from Baa3;

  -- Local and foreign currency short-term issuer rating:
     downgraded to Not Prime from Prime-2;

  -- The outlook on the ratings is negative.

Kazakhstan Mortgage Company (KMC):

  -- Baseline Credit Assessment: lowered to 15 from 14;
  -- Local currency issuer rating: downgraded to Ba2 from Baa3;
  -- The outlook on the rating is negative.

DBK's issuer rating (Baa2) was confirmed reflecting its increasing
role in the country's strategic development, tight oversight by
national authorities and dominant position in providing long-term
investments for non-extractive industries in Kazakhstan.  DBK's
issuer rating significantly benefits from a very high probability
of systemic support, resulting in the bank's ratings being placed
at the same level as those of the Kazakhstan government bond
ratings.  At the same time, Moody's notes the risks of DBK's high
loan book concentration on largest projects and significant share
of still unseasoned greenfield investments, which could
potentially weigh on the issuer's financial performance over time.

The deposit rating of HCSBK (Baa3) was confirmed reflecting the
bank's 100% state control and its special policy mandate in the
housing sector, recently inherited from KMC.  In accordance with
HCSBK's mandate, the bank is to receive substantial cash
injections from the government in 2009-2010 in addition to
US$200 million already received in 2008.

The downgrade of the issuer ratings of KAF (to Ba1 from Baa3) and
ACC (to Ba1 from Baa3) reflects (i) the companies' increasing
dependence on the systemic support caused by the necessity to
refinance their maturing wholesale debt in the medium term, while
the access to capital markets is likely to remain tight, and (ii)
the limited range of external support mechanisms which are subject
to possible delays due to more complex bureaucratic procedures
compared to banking financial institutions.  At the same time,
Moody's believes that the agrarian sector is of significant
importance for the Kazakh government, especially in the current
economic environment.  Furthermore, the identical downgrades of
the companies' ratings indicate Moody's assessment of their
similar risk profiles as well as their equal importance for the
national economy.

The downgrade of KMC's issuer rating (to Ba2 from Baa3) reflects
the lowering of its BCA as well as the low probability of
government support incorporated into the company's issuer rating.
The lowering of the BCA stemmed from the KMC's material
refinancing risk, prompted by the imbalance between long-term
mortgage assets and high reliance on market funding, which may
potentially affect its financial fundamentals and -- most
importantly -- its liquidity profile.  At the same time, the
change in government support assumptions was triggered by the
recently reduced role of the company in supporting the housing
sector, as government spending to finance housing programs through
KMC have been discontinued.

Moody's previous rating action on the five government-owned
financial institutions was on May 22, 2009, when the rating agency
placed their issuer and deposit ratings on review for possible
downgrade.  The rating action followed the default of Astana
Finance -- another Kazakh GRI -- which had previously benefited
from 25.5% government control and letters of comfort from the
state-owned holding Samruk-Kazyna.


KAZ PROM: Creditors Must File Claims by July 24
-----------------------------------------------
Creditors of LLP Kaz Prom Energo Service have until July 24, 2009,
to submit proofs of claim to:
         The Specialized Inter-Regional
         Economic Court of Aktube
         Satpaev Str. 16
         Aktobe
         Aktube
         Kazakhstan

The court of Aktube commenced bankruptcy proceedings against the
company on May 8, 2009.


KAZAGROFINANCE: Moody's Downgrades Issuer Ratings to 'Ba1'
----------------------------------------------------------
Moody's Investors Service has downgraded the ratings of three
Kazakh government-related issuers (Kazagrofinance -- issuer rating
to Ba1 from Baa3; Agrarian Credit Corporation -- issuer rating to
Ba1 from Baa3, and Kazakhstan Mortgage Company -- issuer rating to
Ba2 from Baa3) and confirmed the ratings of one Kazakh GRI
(Development Bank of Kazakhstan -- issuer rating Baa2) and one
bank that is fully controlled by the Kazakh government (House
Construction Savings Bank of Kazakhstan -- Local currency deposit
rating Baa3).  The outlook on the five financial institutions'
issuer and deposit ratings is negative, in line with the negative
outlook on Kazakhstan's sovereign rating.

These rating actions conclude Moody's review process which was
initiated on May 22, 2009 and prompted by concerns that ongoing
stress in the nation's economy, particularly within its financial
sector, might result in the government having to become more
selective in allocation of support to its state-owned financial
institutions.

The rating agency continues to believe that the Kazakh government
will provide support to the government-owned financial
institutions given that they pursue special policy mandates and
are strategically important to the national economy.  However, the
ongoing transformations in the state economic programs and the way
in which they are accomplished have led Moody's to further
distinguish the support profiles of some of those state-owned
financial institutions as is discussed below on a name-by-name
basis.  Moody's notes that the multiple layers of control
structures and the necessity to go through budget processes for
obtaining additional financial support from the government may
cause some delays in providing systemic support.

The detailed list of rating actions concluded, and the five
affected financial institutions are:

Development Bank of Kazakhstan:

  -- Baseline Credit Assessment: unchanged in the range of 11-13;
  -- Local and foreign currency issuer ratings: confirmed at Baa2;
  -- The outlook on all of the bank's ratings is negative.

House Construction Savings Bank of Kazakhstan (HCSBK):

  -- BFSR: unchanged at E+ (mapping to a Baseline Credit
     Assessment of B2), stable outlook;

  -- Local currency deposit rating: confirmed at Baa3;

  -- The outlook on the local currency deposit rating is negative.

Kazagrofinance (KAF):

  -- Baseline Credit Assessment: confirmed at 15;

  -- Local and foreign currency issuer ratings: downgraded to Ba1
     from Baa3;

  -- Local and foreign currency short-term issuer rating:
     downgraded to Not Prime from Prime-3;

  -- The outlook on the ratings is negative.

Agrarian Credit Corporation (ACC):

  -- Baseline Credit Assessment: confirmed at 15;

  -- Local and foreign currency issuer ratings: downgraded to Ba1
     from Baa3;

  -- Local and foreign currency short-term issuer rating:
     downgraded to Not Prime from Prime-2;

  -- The outlook on the ratings is negative.

Kazakhstan Mortgage Company (KMC):

  -- Baseline Credit Assessment: lowered to 15 from 14;
  -- Local currency issuer rating: downgraded to Ba2 from Baa3;
  -- The outlook on the rating is negative.

DBK's issuer rating (Baa2) was confirmed reflecting its increasing
role in the country's strategic development, tight oversight by
national authorities and dominant position in providing long-term
investments for non-extractive industries in Kazakhstan.  DBK's
issuer rating significantly benefits from a very high probability
of systemic support, resulting in the bank's ratings being placed
at the same level as those of the Kazakhstan government bond
ratings.  At the same time, Moody's notes the risks of DBK's high
loan book concentration on largest projects and significant share
of still unseasoned greenfield investments, which could
potentially weigh on the issuer's financial performance over time.

The deposit rating of HCSBK (Baa3) was confirmed reflecting the
bank's 100% state control and its special policy mandate in the
housing sector, recently inherited from KMC.  In accordance with
HCSBK's mandate, the bank is to receive substantial cash
injections from the government in 2009-2010 in addition to
US$200 million already received in 2008.

The downgrade of the issuer ratings of KAF (to Ba1 from Baa3) and
ACC (to Ba1 from Baa3) reflects (i) the companies' increasing
dependence on the systemic support caused by the necessity to
refinance their maturing wholesale debt in the medium term, while
the access to capital markets is likely to remain tight, and (ii)
the limited range of external support mechanisms which are subject
to possible delays due to more complex bureaucratic procedures
compared to banking financial institutions.  At the same time,
Moody's believes that the agrarian sector is of significant
importance for the Kazakh government, especially in the current
economic environment.  Furthermore, the identical downgrades of
the companies' ratings indicate Moody's assessment of their
similar risk profiles as well as their equal importance for the
national economy.

The downgrade of KMC's issuer rating (to Ba2 from Baa3) reflects
the lowering of its BCA as well as the low probability of
government support incorporated into the company's issuer rating.
The lowering of the BCA stemmed from the KMC's material
refinancing risk, prompted by the imbalance between long-term
mortgage assets and high reliance on market funding, which may
potentially affect its financial fundamentals and -- most
importantly -- its liquidity profile.  At the same time, the
change in government support assumptions was triggered by the
recently reduced role of the company in supporting the housing
sector, as government spending to finance housing programs through
KMC have been discontinued.

Moody's previous rating action on the five government-owned
financial institutions was on May 22, 2009, when the rating agency
placed their issuer and deposit ratings on review for possible
downgrade.  The rating action followed the default of Astana
Finance -- another Kazakh GRI -- which had previously benefited
from 25.5% government control and letters of comfort from the
state-owned holding Samruk-Kazyna.


KAZAKHSTAN MORTGAGE: Moody's Cuts Local Cur. Issuer Rating to Ba2
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of three
Kazakh government-related issuers (Kazagrofinance -- issuer rating
to Ba1 from Baa3; Agrarian Credit Corporation -- issuer rating to
Ba1 from Baa3, and Kazakhstan Mortgage Company -- issuer rating to
Ba2 from Baa3) and confirmed the ratings of one Kazakh GRI
(Development Bank of Kazakhstan -- issuer rating Baa2) and one
bank that is fully controlled by the Kazakh government (House
Construction Savings Bank of Kazakhstan -- Local currency deposit
rating Baa3).  The outlook on the five financial institutions'
issuer and deposit ratings is negative, in line with the negative
outlook on Kazakhstan's sovereign rating.

These rating actions conclude Moody's review process which was
initiated on May 22, 2009 and prompted by concerns that ongoing
stress in the nation's economy, particularly within its financial
sector, might result in the government having to become more
selective in allocation of support to its state-owned financial
institutions.

The rating agency continues to believe that the Kazakh government
will provide support to the government-owned financial
institutions given that they pursue special policy mandates and
are strategically important to the national economy.  However, the
ongoing transformations in the state economic programs and the way
in which they are accomplished have led Moody's to further
distinguish the support profiles of some of those state-owned
financial institutions as is discussed below on a name-by-name
basis.  Moody's notes that the multiple layers of control
structures and the necessity to go through budget processes for
obtaining additional financial support from the government may
cause some delays in providing systemic support.

The detailed list of rating actions concluded, and the five
affected financial institutions are:

Development Bank of Kazakhstan:

  -- Baseline Credit Assessment: unchanged in the range of 11-13;
  -- Local and foreign currency issuer ratings: confirmed at Baa2;
  -- The outlook on all of the bank's ratings is negative.

House Construction Savings Bank of Kazakhstan (HCSBK):

  -- BFSR: unchanged at E+ (mapping to a Baseline Credit
     Assessment of B2), stable outlook;

  -- Local currency deposit rating: confirmed at Baa3;

  -- The outlook on the local currency deposit rating is negative.

Kazagrofinance (KAF):

  -- Baseline Credit Assessment: confirmed at 15;

  -- Local and foreign currency issuer ratings: downgraded to Ba1
     from Baa3;

  -- Local and foreign currency short-term issuer rating:
     downgraded to Not Prime from Prime-3;

  -- The outlook on the ratings is negative.

Agrarian Credit Corporation (ACC):

  -- Baseline Credit Assessment: confirmed at 15;

  -- Local and foreign currency issuer ratings: downgraded to Ba1
     from Baa3;

  -- Local and foreign currency short-term issuer rating:
     downgraded to Not Prime from Prime-2;

  -- The outlook on the ratings is negative.

Kazakhstan Mortgage Company (KMC):

  -- Baseline Credit Assessment: lowered to 15 from 14;
  -- Local currency issuer rating: downgraded to Ba2 from Baa3;
  -- The outlook on the rating is negative.

DBK's issuer rating (Baa2) was confirmed reflecting its increasing
role in the country's strategic development, tight oversight by
national authorities and dominant position in providing long-term
investments for non-extractive industries in Kazakhstan.  DBK's
issuer rating significantly benefits from a very high probability
of systemic support, resulting in the bank's ratings being placed
at the same level as those of the Kazakhstan government bond
ratings.  At the same time, Moody's notes the risks of DBK's high
loan book concentration on largest projects and significant share
of still unseasoned greenfield investments, which could
potentially weigh on the issuer's financial performance over time.

The deposit rating of HCSBK (Baa3) was confirmed reflecting the
bank's 100% state control and its special policy mandate in the
housing sector, recently inherited from KMC.  In accordance with
HCSBK's mandate, the bank is to receive substantial cash
injections from the government in 2009-2010 in addition to
US$200 million already received in 2008.

The downgrade of the issuer ratings of KAF (to Ba1 from Baa3) and
ACC (to Ba1 from Baa3) reflects (i) the companies' increasing
dependence on the systemic support caused by the necessity to
refinance their maturing wholesale debt in the medium term, while
the access to capital markets is likely to remain tight, and (ii)
the limited range of external support mechanisms which are subject
to possible delays due to more complex bureaucratic procedures
compared to banking financial institutions.  At the same time,
Moody's believes that the agrarian sector is of significant
importance for the Kazakh government, especially in the current
economic environment.  Furthermore, the identical downgrades of
the companies' ratings indicate Moody's assessment of their
similar risk profiles as well as their equal importance for the
national economy.

The downgrade of KMC's issuer rating (to Ba2 from Baa3) reflects
the lowering of its BCA as well as the low probability of
government support incorporated into the company's issuer rating.
The lowering of the BCA stemmed from the KMC's material
refinancing risk, prompted by the imbalance between long-term
mortgage assets and high reliance on market funding, which may
potentially affect its financial fundamentals and -- most
importantly -- its liquidity profile.  At the same time, the
change in government support assumptions was triggered by the
recently reduced role of the company in supporting the housing
sector, as government spending to finance housing programs through
KMC have been discontinued.

Moody's previous rating action on the five government-owned
financial institutions was on May 22, 2009, when the rating agency
placed their issuer and deposit ratings on review for possible
downgrade.  The rating action followed the default of Astana
Finance -- another Kazakh GRI -- which had previously benefited
from 25.5% government control and letters of comfort from the
state-owned holding Samruk-Kazyna.


KEY STROY: Creditors Must File Claims by July 24
------------------------------------------------
Creditors of LLP Key Stroy have until July 24, 2009, to submit
proofs of claim to:

         Micro district Ainabulak-2, 32-3
         Almaty
         Kazakhstan

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on April 9, 2009, after
finding it insolvent.

The Court is located at:

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


ZERNOVOY ALLIANCE: Creditors Must File Claims by July 24
--------------------------------------------------------
Creditors of LLP Zernovoy Alliance have until July 24, 2009, to
submit proofs of claim to:

         Auelbekov Str. 126-75
         Kokshetau
         Akmola
         Kazakhstan

The Specialized Inter-Regional Economic Court of Akmola commenced
bankruptcy proceedings against the company on March 10, 2009,
after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Akmola
         Gorky Str. 37
         Kokshetau
         Akmola
         Kazakhstan


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


AGRO SNUB: Creditors Must File Claims by August 7
-------------------------------------------------
LLC Agro Snub Trade is currently undergoing liquidation.
Creditors have until August 7, 2009, to submit proofs of claim.

Inquiries can be addressed to (0-550) 91-02-27.


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


STANTON CDO: S&P Junks Ratings on Seven Classes of Notes
--------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered and
removed from CreditWatch negative its credit ratings on the A-1A,
A-1B, A-1U, A-2U, A-2E1, A-2E2, B, and C notes issued by Stanton
CDO I S.A.

These rating actions follow an event of default under the note
conditions after the class A overcollateralization test ratio fell
below its trigger level of 100%.

According to the transaction documents, the occurrence of an event
of default gives the trustee and the most senior class of notes
the right to accelerate the repayment of the notes, which may
result in the liquidation of the collateral in the underlying
pool.  In these circumstances, S&P considers that liquidation
proceeds may not be sufficient to fully repay all the noteholders.
S&P has therefore lowered its ratings on all classes of notes to
levels that, in S&P's view, reflect the increased risk of non-
payment following the event of default.

Furthermore, according to the trustee report, the transaction
fails all its interest coverage (i/c) tests ratios, with the class
B and C ratios currently well below 100%.  This indicates that the
projected interest income from the assets remaining after payment
of items that are senior to the rated notes in the priority of
payments is not sufficient to pay interest on the respective
classes of notes.  From the information provided to us, S&P
believes that the interest coverage ratios have fallen mainly due
to an increase in the amount of assets in the portfolio that
started to defer interest payments, and due to asset defaults.
Currently about 70% of the assets in the portfolio have the
ability to defer interest.  Of these assets, 19% are currently
deferring.

Due to breaches of all the O/C tests, any principal proceeds
remaining after payment of senior items and class A-1 interest are
first used to repay the class A-1 principal and any swap
termination payments related to the class A-1 euro-denominated
notes.  Therefore, in S&P's view the non-deferrable class A-2 and
B notes are vulnerable to non-payment of interest on the next
payment date.  The class C note has already started to defer its
interest payments.

Stanton CDO I's portfolio comprises primarily mezzanine tranches
of U.S. CDO of corporate loans, and to a lesser extend emerging
market CDOs, and CDOs of asset-backed securities.

                           Ratings List

                         Stanton CDO I S.A.
          US$378.31 Million Senior, EUR48 Million Senior,
                US$25 Million Deferrable Interest,
       US$40 Million Subordinated Secured Floating-Rate Notes

      Ratings Lowered and Removed From CreditWatch Negative

                              Rating
                              ------
           Class        To               From
           -----        --               ----
           A-1A         CCC              BBB/Watch Neg
           A-1B         CCC              BBB/Watch Neg
           A-1U         CCC              BBB/Watch Neg
           A-2U         CCC-             BB/Watch Neg
           A-2E1        CCC-             BB/Watch Neg
           A-2E2        CCC-             BB/Watch Neg
           B            CC               B/Watch Neg
           C            CC               CCC/Watch Neg


=============
M O L D O V A
=============


INVESTPRIVATBANK: Deposits Transferred to Banca de Economii
-----------------------------------------------------------
Moldpress News Agency reports that, according to data by the
National Bank of Moldova, about 51 per cent of all the deposits of
private people in the insolvent Investprivatbank have been
transferred to the Banca de Economii (Savings Bank).

According to the report, MDL319 million (EUR20.4 million) has been
transferred, of which MDL102 million in foreign currency.  The
report says the total value of deposits held at Investprivatbank,
which has 8,000 depositors, is MDL900 million, of which MDL600
million belong to private people.

The report recalls the National Bank revoked the license of
Investprivatbank on June 19, saying that the Moldovan bank was
in the red, had an inadequate management and presented false
reports.


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


FORTIS NV: S&P Keeps 'BB/B' Counterparty Credit Ratings
-------------------------------------------------------
Standard & Poor's Ratings Services said that it has kept its
'BB/B' long- and short-term counterparty credit ratings on
Belgium-based insurance group Fortis (Fortis SA/NV and Fortis
N.V.) on CreditWatch with positive implications.

At the same time, S&P kept on CreditWatch with negative
implications S&P's 'A' long-term counterparty credit and insurer
financial strength ratings on Fortis' main insurance subsidiary AG
Insurance (formerly Fortis Insurance Belgium).

S&P's issue ratings on Fortis' outstanding hybrid instruments
issued by Fortis Hybrid Financing also remain on CreditWatch
developing.

The positive CreditWatch status of Fortis reflects S&P's view of
the upside potential for Fortis arising from the deal with the
Belgian government and BNP Paribas, which was approved at Fortis
shareholder meetings in Belgium (on April 28, 2009) and the
Netherlands (on April 29, 2009).

This agreement is likely in S&P's view to alleviate some of the
uncertainties relating to Fortis' structure and legal risks, its
liquidity and capital positions, and the risks relating to its
noninsurance assets and liabilities.

The negative CreditWatch status of AGI indicates that S&P might
decide to lower S&P's assessment of its stand-alone credit
profile, particularly given the difficult operating environment.

In S&P's opinion, the new agreement with Fortis Bank SA/NV
(AA-/Negative/A-1+) and the bank's 25% ownership of AGI are likely
to add strength to AGI.  However, S&P believes it is unlikely to
result in an upgrade.

Finally, pending S&P's review of the changes in the terms and
conditions of hybrid instruments issued by Fortis, S&P is also
keeping their ratings on CreditWatch.  S&P's 'BB' long-term issue
ratings on the three hybrid instruments issued by Fortis Hybrid
Financing remain on CreditWatch with developing implications
pending S&P's review of the changes in their terms and conditions.
S&P's 'CCC' long-term issue rating on the "FRESH" instrument
issued by FortFinLux S.A. also remains on CreditWatch negative
pending the review of Fortis' strategic positioning with regards
to this instrument.

S&P expects to resolve or update the various CreditWatch
placements within the next two months.  S&P expects the upside
potential for the ratings on the holding companies to be up to
four notches.  S&P expects the downside potential on AGI to be one
or two notches.

To resolve the CreditWatch status on Fortis Hybrid Financing's
instruments, S&P needs to review the changes in their terms and
conditions.  S&P needs also to review Fortis' strategic
positioning regarding the FRESH instrument and the possible impact
of hybrid instruments on the rating of the holding.


JUBILEE CDO: Moody's Cuts Rating on EUR9MM Class B Notes to 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of three
classes of notes issued by Jubilee CDO IX B.V.

This transaction is a managed high yield cash collateralized loan
obligation with exposure to predominantly European senior secured
loans, as well as some 2nd lien mezzanine loan exposure.

The rating actions reflects Moody's revised assumptions with
respect to default probability and the calculation of the
Diversity Score as described in the press release dated February
4, 2009, titled "Moody's updates key assumptions for rating CLOs."
These revised assumptions have been applied to all corporate
credits in the underlying portfolio, the revised assumptions for
the treatment of ratings on "Review for Possible Downgrade",
"Review for Possible Upgrade", or with a "Negative Outlook" being
applied to those corporate credits that are publicly rated.

Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's Credit Estimates.  As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these estimates.

According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed in, among other measures as per Trustee Report
dated June 5, 2009, a decline in the average credit rating as
measured through the weighted average rating factor (currently
2548), and an increase in the proportion of securities from
issuers rated Caa1 and below (currently 7.4% of the portfolio).
Moody's also performs some sensitivity analysis, including amongst
others, a further decline in portfolio quality (i.e. stressed WARF
analysis).  Due to the impact of all the aforementioned stresses,
key model inputs used by Moody's in its analysis, such as par,
weighted average rating factor, and weighted average recovery
rate, may be different from trustee's reported numbers.

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of the rating committee
considerations.  These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio.  All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for cash flow CLOs as described in Moody's Special Reports and
press releases below:

  -- Moody's Approach to Rating Collateralized Loan Obligations
    (December 2008)

The rating actions are:

Jubilee CDO IX B.V.:

EUR276,000,000 Class A Senior Secured Floating Rate Notes due
October 10, 2024

  -- Current Rating: Aa1
  -- Prior Rating: Assigned Aaa
  -- Prior Rating Date: 04 Jul 2008

EUR32,000,000 Class B Senior Secured Floating Rate Notes due
October 10, 2024

  -- Current Rating: Baa2
  -- Prior Rating: Aa2 placed under review for possible downgrade
  -- Prior Rating Date: 04 Mar 2009

EUR9,000,000 Class C Senior Secured Floating Rate Notes due
October 10, 2024

  -- Current Rating: Ba1
  -- Prior Rating: A2 placed under review for possible downgrade
  -- Prior Rating Date: 4 Mar 2009


NXP BV: S&P Downgrades Long-Term Corporate Credit Rating to 'SD'
----------------------------------------------------------------
Standard & Poor's Ratings Services said it has lowered to 'SD'
from 'CC' its long-term corporate credit rating on Dutch
semiconductor manufacturer NXP B.V.  S&P also lowered the issue
ratings on NXP's senior unsecured and senior secured notes to 'D'
(default) from 'C' and 'CC', respectively.  S&P affirmed the issue
ratings on NXP's super-priority EUR500 million revolving credit
facility due 2012 and super-priority notes due 2013 at 'CCC'.  The
super-priority debt issues are not subject to NXP's cash offer
announced June 9, 2009.

The '1' recovery ratings on NXP's revolver and super-priority
notes, the '4' ratings on its senior secured notes, and the '5'
ratings on its senior unsecured notes are unchanged, respectively
indicating S&P's expectations for full (90%-100%) recovery,
average (30%-50%) recovery, and modest (10%-30%) recovery in the
event of a payment default.

At the same time, S&P removed all the ratings on NXP from
CreditWatch, where they were placed with negative implications on
June 9, 2009, after NXP's cash offer for its debt.

On July 2, 2009, NXP announced the results of a deeply-discounted
cash offer for its senior unsecured and senior secured notes, for
which S&P understand that noteholders were paid between 37.5% and
47.5% of face value, on US$504 million of notes tendered and
accepted.  S&P considers this offer as distressed under S&P's
criteria, and when completed as an exchange, as tantamount to
default.  At March 31, 2009, NXP reported consolidated gross debt
of US$6.4 billion, including US$0.6 billion drawn under its
revolving credit facility.  S&P estimates that the recent cash
offer and a debt exchange completed in April 2009 reduced gross
debt to about US$5.6 billion at current exchange rates, excluding
any changes in the revolver draw.

According to NXP, the cash offer will reduce the company's debt by
US$504 million, resulting in a cut in annual interest charges
equivalent to US$32 million.  Although NXP has not disclosed how
much it will pay in total for its cash offer, S&P calculates the
amount at slightly above US$200 million.

"In the coming days, S&P will reevaluate NXP's post-exchange
capital structure and, absent any new developments, S&P expects to
raise S&P's long-term corporate credit rating on NXP to the 'CCC'
category, likely with a negative outlook, from 'SD'," said
Standard & Poor's credit analyst Patrice Cochelin.  "This
primarily reflects S&P's recognition of NXP's somewhat reduced
liquidity following the cash offer, continued high cash burn, and
still heavy debt burden after completing the recent exchanges."
In total, excluding currency impacts and including a US$600
million revolver draw, S&P estimates that NXP has reduced its
gross debt burden by 15% thanks to its two offers.

"The company has not ruled out further debt exchanges or buybacks
in the future," said Mr. Cochelin, "And S&P therefore continue to
assess NXP's financial risk profile as highly leveraged."

Because of S&P's expectation of continued negative free operating
cash flow generation for NXP in 2009 -- despite a somewhat lower
interest burden -- refinancing risks for the company's 2012 and
2013 debt maturities will remain a rating constraint, keeping the
rating on NXP in the 'CCC' category.

Over the near term, these risks are partially offset by S&P's
expectation of a moderate demand pick-up in second-quarter 2009
and S&P's assessment of NXP's liquidity as adequate, although
weakening.  NXP's most recent guidance calls for sequential
revenue growth in the higher end of the company's previous 10%-25%
range, excluding wafer sales and at constant currencies.


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


GAZPROM OAO: S&P Assigns Short-Term Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'A-3'
short-term corporate credit rating to the Russian gas giant OAO
Gazprom.  The 'BBB' long-term rating was affirmed.  The outlook is
negative.

At the same time, S&P assigned its 'BBB' senior unsecured debt
ratings to the Russian ruble (RUR) 5 billion Series A11 bond and
RUR10 billion Series A13 bond issued by Gazprom.

"The 'A-3' short-term rating on Gazprom is based on S&P's
assessment of its liquidity position as adequate, given its proven
access to financing from Russian state-owned financial
institutions and bond markets," said Standard & Poor's credit
analyst Andrey Nikolaev.

The ratings on Gazprom reflect its stand-alone credit profile,
which Standard & Poor's assesses at 'BB+', but it also
incorporates two notches uplift for extraordinary state support.

In accordance with S&P's criteria for government-related entities,
S&P qualify Gazprom as having:

  -- A "very important" role in the economy, given its mandate to
     maintain the country's gas transportation network and supply
     about 40% of the country's energy balance at low regulated
     prices.  Gazprom is responsible for about 15% of the
     country's exports and 14% of federal tax revenues, and serves
     as the government's key tool in strengthening state control
     over the strategic hydrocarbon sector.

  -- A "strong" link with the government, which is actively
     involved in defining the group's strategy and intends to
     maintain a controlling majority in its capital.  S&P also
     takes into account that the size of the group's financial
     liabilities is considerable compared with the size of
     Russia's economy.

The SACP of 'BB+' is based on Standard & Poor's classification of
the group's business profile as "satisfactory", given its vast
proven reserves, massive production, vertical integration, and a
solid European market share.  It is also based on S&P's
classification of its financial profile as "significant" owing to
its high debt, and aggressive financial policy involving multiple
acquisitions and late and complex financial disclosures.

S&P's stand-alone assessment also factors in S&P's perception of
the benefits and disadvantages of Gazprom's ongoing relationship
with the Russian Federation (foreign currency BBB/Negative/A-3,
local currency BBB+/Negative/A-2).  This includes Gazprom's
privileged access to new business opportunities, strong bargaining
power, S&P's perception of a strong access to financing by state-
controlled banks, a very conservative dividend policy, but at the
same time still low (albeit increasing) domestic gas prices, and
acquisition ambitions.

The negative outlook reflects S&P's view of significant pressures
on Gazprom's stand-alone credit quality, notably in the event of
higher-than-expected debt increases in 2009 and 2010.  It also
reflects the negative outlook on the Russian Federation.
Deterioration of either the stand-alone or the sovereign credit
quality could prompt a one-notch downgrade

"In a difficult gas market environment characterized by a steep
drop in Gazprom's sales volumes in the first quarter and lower
oil-indexed prices in the second half, S&P will monitor as closely
as public disclosures allow the company's ability and willingness
to adjust its considerable capital expenditure program, reduce its
pace of acquisitions significantly, and manage its liquidity
despite ongoing refinancing needs," said Mr. Nikolaev.

The government's incentive to load Gazprom with additional
mandates to support other entities affected by the ongoing turmoil
in the financial sector is also an increased risk factor, in S&P's
view.


NGS-STROY LLC: Creditors Must File Claims by July 26
----------------------------------------------------
The Arbitration Court of Khanty-Mansiysk commenced bankruptcy
proceedings against LLC NGS-Stroy (TIN 8602248099, PSRN
1058602078237) (Construction) after finding the company insolvent.
The case is docketed under Case No. ?75–2203/2009.

Creditors have until July 26, 2009, to submit proofs of claims to:

         I. Matlygin
         Insolvency Manager
         Post User Box 227
         620072 Yekaterinburg
         Russia
         Tel: 8 (343) 344-98-73

The Debtor can be reached at:

         LLC NGS-Stroy
         Severnaya Str. 68/24
         Surgut
         628403 Khanty-Mansiysk
         Russia


ROS-DON-STROY LLC: Creditors Must File Claims by July 26
--------------------------------------------------------
Creditors of LLC Ros-Don-Stroy (TIN 6151011291, PSRN
1026102481767) (Construction) have until July 26, 2009, to submit
proofs of claims to:

         A. Semenyakov
         Temporary Insolvency Manager
         Post User Box 3199
         344092 Rostov-on-Don
         Russia

The Arbitration Court of Rostovskaya will convene at 5:00 p.m. on
November 10, 2009, to hear bankruptcy supervision procedure on the
company.  The case is docketed under Case No. ?53–9547/2009.

The Debtor can be reached at:

         LLC Ros-Don-Stroy
         Magistralnaya Str. 1
         Novoshakhtinsk
         346908 Rostovskaya
         Russia


SAMIR WOOD: Creditors Must File Claims by July 26
-------------------------------------------------
Creditors of LLC Samir Wood Company have until July 26, 2009, to
submit proofs of claims to:

         V. Bobrov
         Temporary Insolvency Manager
         Svyazistov Str. 24-64
         614094 Perm
         Russia

The Arbitration Court of Permskaya will convene on September 10,
2009, to hear bankruptcy supervision procedure on the company.
The case is docketed under Case No. ?50 - 10247/2009.

The Debtor can be reached at:

         LLC Samir Wood Company
         Lenina Str. 31
         Gremyachinsk
         Permskiy
         Russia



STROY-GRAD CJSC: Creditors Must File Claims by July 26
------------------------------------------------------
Creditors of CJSC Stroy-Grad (TIN 5405289975, PSRN 1055405018085)
(Construction) have until July 26, 2009, to submit proofs of
claims to:

         I. Sidorov
         Insolvency Manager
         Post User Box 5
         630005 Novosibirsk
         Russia
         Tel: (383) 224-87-74

The Arbitration Court of Novosibirskaya will convene at 9:30 a.m.
on December 1, 2009, to hear bankruptcy proceedings on the
company. The case is docketed under Case No. ?45–6742/2009.

The Debtor can be reached at:

         CJSC Stroy-Grad
         Nikitina Str. 2/1
         630009 Novosibirsk
         Russia


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


AFIRMA GRUPO: Wants to Conclude Debt Refinancing by July 31
-----------------------------------------------------------
Sarah Morris at Reuters reports that Afirma Grupo Inmobiliario,
S.A. said on Monday it aimed to conclude the refinancing of its
total debt no later than July 31.

Reuters relates in a filing with the Spanish stock exchange,
Afirma said it had already signed a refinancing agreement with
creditors on its syndicated loan.

On July 1, 2009, the Troubled Company Reporter-Europe, citing
Reuters, reported Afirma said it was in the process of signing
agreements with creditor banks to refinance around EUR1.4 billion
(US$1.96 billion) of debt.

In a June 11 report Reuters disclosed the company reached a
pre-accord with creditor banks to delay the repayment of its debt
for two years and finance interest payments during the period.
Reuters said the preliminary agreement includes the possibility of
providing Afirma with an additional cash injection to guarantee
the company's stability for three years against a backdrop of a
severe slump in its business agreement.

Afirma Grupo Inmobiliario, S.A., is a real estate company based in
Spain.


BBVA RMBS 8: Moody's Assigns (P)'Ba2' Rating on Series C Notes
--------------------------------------------------------------
Moody's Investors Service assigned provisional credit ratings to
these classes of Notes issued by BBVA RMBS 8:

  -- (P)Aaa to the EUR1,146.8 million Series A notes
  -- (P)A1 to the EUR48.8 million Series B notes
  -- (P)Ba2 to the EUR24.4 million Series C notes

The transaction represents the securitization of Spanish
residential mortgage loans originated by Banco Bilbao Vizcaya
Argentaria (Aa1 under review for downgrade, P-1).  The assets
being securitized are all backed by VPO properties.  VPO
properties are residential properties that are offered at a lower
price than the market value as a result of various forms of
government aid.

Moody's based the provisional ratings primarily on: (i) an
evaluation of the underlying portfolio of loans; (ii) an analysis
of the collateral historical performance; (iii) the swap
agreements hedging the interest rate risk; (iv) the credit
enhancement provided by the reserve fund, the subordination of the
notes, and the excess spread; and (v) the legal and structural
integrity of the transaction.

The key parameters used to calibrate the loss distribution curve
for this portfolio include a Milan Aaa CE of 6.4% and an expected
loss of 1.6%.  Specific characteristic of this pool including a
high proportion of low income borrowers, combined with uncertainty
on the VPO sector and the deteriorating economic environment drove
a Milan Aaa CE for this transaction to be higher than that which
would be driven by the MILAN model outcome.

The V-Score for this transaction is Medium/High, which is higher
than the Medium V-Score assigned for the Spanish RMBS sector.
This is due to the limited historical data for VPO, the limited
historical information provided by the originator which doesn't
cover a severe stress scenario, and the complexity of the analysis
resulting from the specific characteristics of this collateral.
V-Scores are a relative assessment of the quality of available
credit information and of the degree of dependence on various
assumptions used in determining the rating.  High variability in
key assumptions could expose a rating to more likelihood of rating
changes.  The 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 4th 2008 a package of
aid to assist unemployed, self employed and pensioner 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 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, B and C. 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.  Moody's issues provisional
ratings in advance of the final sale of securities and these
ratings represent Moody's preliminary opinion.  Upon a conclusive
review of the transaction and associated documentation, Moody's
will endeavour to assign definitive rating to the Notes.  A
definitive rating may differ from a provisional rating.


SYNCORA GUARANTEE: S&P Gives Stable Outlook on Autovia Debt Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on the underlying debt rating on Spanish toll road
special-purpose company Autovia del Camino S.A.'s EUR175 million
senior secured European Investment Bank loan due 2029, and
EUR145 million senior secured commercial bank loan due 2030, to
stable from positive.  At the same time, the underlying 'BBB'
rating on the loans was affirmed.

The loans have an unconditional and irrevocable guarantee of
payment of scheduled interest and principal from Syncora Guarantee
U.K. Ltd. (CC/Negative/--; formerly XL Capital Assurance (U.K.)
Ltd.)  Under Standard & Poor's criteria, a rating on monoline-
insured debt reflects the higher of the rating on the monoline and
Standard & Poor's underlying rating.  Therefore, the long-term
debt rating on the loans reflects the SPUR.

S&P does not expect a possible insolvency at Syncora or withdrawal
of the rating on Syncora to have any negative impact on the rating
on the Camino at this stage.

"The revision of the outlook to stable from positive mainly
reflects S&P's downward revision of Camino's medium-term traffic
growth and inflation forecast in line with S&P's most recently
updated assumptions for Spanish GDP growth and inflation," said
Standard & Poor's credit analyst Jose Ramon Abos.

It also reflects slightly higher financial costs due to a recent
revision of loan spreads.  The resulting debt service coverage
ratios in S&P's revised base case scenario are more in line with
S&P's expectations for the 'BBB' rather than 'BBB+' rating level
for a project with the characteristics of Camino.


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


4-LEAF CLOVER: Creditors Must File Claims by July 30
----------------------------------------------------
Creditors of 4-Leaf Clover - Pharmaceutical Placement Agency GmbH
are requested to file their proofs of claim by July 30, 2009, to:

         C. Aegerter
         Muehlemattstr. 22B
         4104 Oberwil
         Switzerland

The company is currently undergoing liquidation in Oberwil.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on April 16, 2009.


LOKALRADOI AG: Claims Filing Deadline is July 31
------------------------------------------------
Creditors of Lokalradio AG are requested to file their proofs of
claim by July 31, 2009, to:

         Dr. Guenter Heuberger
         Gertrudstrasse 1
         Mail Box 2299
         8401 Winterthur
         Switzerland

The company is currently undergoing liquidation in Wil.  The
decision about liquidation was accepted according to paragraph 153
HRegV on September 10, 2008.


NUFATECH GMBH: Creditors Must File Claims by July 20
----------------------------------------------------
Creditors of NUFATECH GmbH are requested to file their proofs of
claim by July 20, 2009, to:

         NUFATECH GmbH
         Mail Box 1463
         8801 Thalwil
         Switzerland

The company is currently undergoing liquidation in Thalwil.  The
decision about liquidation was accepted at a shareholders' meeting
held on January 29, 2009.


UBS AG: Miami Judge Delays Hearing on US Tax Authority's Case
-------------------------------------------------------------
Christine Seib at Times Online reports that Judge Alan Gold
approved the delay in the US tax authority's case against UBS AG.

According to the report, the U.S. Department of Justice and UBS
asked to postpone a July 13 hearing so they could discuss a
settlement.

The report relates Judge Gold, presiding over the District Court
for the Southern District of Florida, said he would further delay
the hearing if the countries got close to a settlement in the next
two weeks.  He said that he expected the two parties to give an
update on July 29 on whether they were close to coming to an
agreement, the report notes.

The Justice Department, as cited in the report, said that any
settlement would have to include the information on a "significant
number of individuals with UBS accounts".  The report notes a
settlement is also likely to feature a fine for UBS, which in
February paid US$700 million to settle an earlier action by the
DOJ that it helped some US clients to evade tax.

The report recalls the DoJ, at the instigation of the Internal
Revenue Service, sued UBS in February to force the bank to hand
over the names of its 52,000 US clients with Swiss bank accounts.
UBS refused to give up the identities of its account holders
because to do so would violate Switzerland's strict banking
secrecy laws, the report recounts.

                         About UBS AG

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

As reported in the Troubled Company Reporter-Europe, UBS has
amassed more than US$53 billion in writedowns and losses since the
credit crisis began.  The bank expects to post a loss in the
second quarter of 2009.  The bank's net loss for full-year 2008
widened to CHF19.697 billion from of CHF5.247 million in the prior
year.  Net losses from continuing operations totaled CHF19.327
billion, compared with losses of CHF5.111 billion in the prior
year.  UBS attributed the losses to negative revenues in its fixed
income, currencies and commodities (FICC) area.  For the 2008
fourth quarter, UBS incurred a net loss of CHF8.100 billion, down
from a net profit of CHF296 million.  Net loss from continuing
operations was CHF7.997 billion compared with a profit of CHF433
million.  The Investment Bank recorded a pre-tax loss of CHF7.483
billion, compared with a pre-tax loss of CHF2.748 billion in the
prior quarter.  This result was primarily due to trading losses,
losses on exposures to monolines and impairment charges taken
against leveraged finance commitments.  An own credit charge of
CHF1.616 billion was recorded by the Investment Bank in fourth
quarter 2008, mainly due to redemptions and repurchases of UBS
debt during this period.

UBS said it will further reduce its headcount to 15,000 by the end
of the year.  UBS's personnel numbers reduced to 77,783 on
December 31, 2008, down by 1,782 from September 30, 2008, with
most staff reductions at its investment banking unit.


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


IS FINANSAL: Fitch Affirms 'BB' Long-Term Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has affirmed Turkey-based Is Finansal Kiralama
A.S.'s (Is Leasing) ratings at Long-term foreign currency Issuer
Default 'BB' with a Stable Outlook.

The ratings are driven by the support of its parent, Turkiye Is
Bankasi A.S. (Isbank, rated 'BB'/Outlook Stable), given Is
Leasing's strong integration into the parent bank.  Is Leasing is
57.7% owned by Isbank.  Therefore, Fitch believes that Isbank
would have a high propensity to provide timely support to Is
Leasing, should it be needed.  Is Leasing is a subsidiary
operating under the brand name 'Is' and generates around 50% of
its busine ss using Isbank branches and the wider Is Group
companies.  Is leasing is highly integrated into its parent bank
in terms of risk management, operations, IT and human resources.
While Isbank is restricted by prudential regulations in the amount
of capital and liquidity it can provide to Is Leasing, the size
difference between the banks (Isbank had TRY114 billion of assets
and TRY12 billion of equity at end-Q109 compared with Is Leasing
which had TRY1.3 billion assets and TRY299 million of equity) is
such that this constraint is not presently a concern.

The rating actions with respect to Is Leasing are:

  -- Long-term foreign currency IDR: affirmed at 'BB' with a
     Stable Outlook

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

  -- Long-term local currency IDR: affirmed at 'BBB-' with a
     Stable Outlook

  -- Short-term local currency IDR: affirmed at 'F3'

  -- National Long-term Rating: affirmed at 'AAA(tur)' with a
     Stable Outlook

  -- Support Rating: affirmed at '3'.

The Individual Rating reflects the standalone strength of a bank
while the Support Rating reflects the probability of support from
a majority shareholder and/or the State.


TURKIYE IS: Fitch Affirms Long-Term Issuer Default Rating at 'BB'
-----------------------------------------------------------------
Fitch Ratings has affirmed Turkiye Is Bankasi A.S.'s ratings at
Long-term foreign currency Issuer Default 'BB' and LT local
currency IDR 'BBB-'.

Isbank's LT foreign currency IDR is constrained by Turkey's 'BB'
Country Ceiling and its LT local currency IDR is rated two notches
above the sovereign's based on the bank's stand-alone financial
strength.  The Individual rating reflects Isbank's strong
franchise within Turkey, as the largest private bank in terms of
assets, customer deposits, TRY-denominated loans and its branch
network at end-Q109.  In addition, the rating considers its
comfortable liquidity supported by stable core funding, good
performance, a sound risk management system and adequate
capitalization, but also its exposure to a difficult global and
domestic economic environment.

Profitability remained strong in 2008 and Q109, supported by a
low-cost strong deposit base and still high interest rates on
loans reflecting the cost of risk.  While loan impairment charges
were significantly higher due to the slowing economy, non-interest
operating expenses were under control, providing a large buffer
for absorbing the rise in loan impairment changes.  Due to the
bank's good efficiency and favorable cost of funding benefiting
from the strong retail customer deposit franchise, Fitch believes
that Isbank is well placed to weather difficult times.

The loan portfolio is dominated by Turkish lira retail and SME
loans, while the share of FX loans was 35.6% in Q109, which were
mostly corporate and project finance loans.  Its asset quality has
been deteriorating with the slowing economy, with NPLs at end-Q109
equating to 4.7% of total gross loans.  While this proportion was
worse than the sector average of 4.3%, unlike some peers Isbank
did not sell any NPLs and recoveries are substantially higher than
write-offs, suggesting that the underlying quality may not be
worse.

Isbank's structural maturity mismatch and potential liquidity
risks are partly mitigated by its stable core deposit base and by
closely monitoring its cash management projections.  At end-Q109,
Isbank's consolidated regulatory tier 1 ratio remained sound at
16.09%.

Isbank was established in 1924 as Turkey's first private
commercial bank to support the country's economic development.
Isbank Group's core business is retail, corporate, commercial and
private banking services.  The group is also active through its
subsidiaries in a wide range of financial services and it has a
portfolio of non-core strategic participations in large Turkish
companies - mainly in the glass and telecommunications sectors.

The Individual Rating reflects the standalone strength of a bank
while the Support Rating reflects the probability of support from
a majority shareholder and/or the State.

The rating actions with respect to Isbank are:

  -- LT foreign currency IDR affirmed at 'BB'; Outlook Stable
  -- Short-term (ST) foreign currency IDR affirmed at 'B'
  -- LT local currency IDR affirmed at 'BBB-'; Outlook Stable
  -- ST local currency IDR affirmed at 'F3'
  -- Individual rating affirmed at 'C'
  -- Support rating affirmed at '4'
  -- National LT rating affirmed at 'AAA(tur)'; Outlook Stable
  -- Support Rating Floor affirmed at 'B+'


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


ALBURN REAL: S&P Cuts Ratings on Four Classes of Notes to Low-B
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on all the notes issued by
Alburn Real Estate Capital Ltd.

At closing, Alburn used the proceeds from the note issuance to
make a senior ranking secured loan to the borrower.  The loan is
secured by a portfolio of 45 secondary properties located across
the U.K.  The outstanding senior loan (and note) balance is
GBP185.9 million.

There is additional unrated debt in the form of a GBP11.8 million
B-note that does not form part of the securitization.  The
relationship between Alburn (as senior lender) and the B-lender is
governed by an intercreditor agreement.

The loan is due to mature in October 2013 and legal final maturity
of the notes is October 2016.

In April, the reported market value of the properties backing the
transaction was GBP139.55 million.  This results in senior and
whole-loan loan-to-value ratios of 133.0% and 142.0%,
respectively, which exceed the senior and whole LTV ratio
covenants of 75.3% and 80.0%.  In S&P's opinion, increases in cap
rates have driven the deterioration in value.  The reported annual
net income from the properties is GBP16.1 million and is virtually
unchanged since closing.

Given the circumstances and based on current information, S&P
expects the servicer will likely confirm a loan event of default.
A loan event of default would also result in all principal
repayments made to the issuer being applied sequentially to the
notes, starting with the most senior class.

The mechanics of allocating whole-loan proceeds between Alburn and
the B-lender are detailed in the intercreditor agreement.  A loan
event of default, such as a breach of the senior or whole-loan LTV
ratio covenant, would not, S&P understands, automatically change
the allocation of whole-loan proceeds.  S&P understands that the
servicer is required to accelerate the loan before all payments
due to the B-lender are effectively stopped and paid to Alburn.

According to the transaction documents, before the acceleration of
the loan and while an event of default remains outstanding, all
amounts that would otherwise be due to the B-lender are to be held
in an escrow account.  If the default is cured, or the servicer
has not accelerated the loan within 60 days of the event of
default, the amounts retained in the escrow account are to be
released to the B-lender.

In situations where the B-lender's economic interest has been
eroded completely, S&P believes the servicer may consider ceasing
to make further payments to the B-lender under its powers to do so
in the transaction documents.

In light of the current whole-loan LTV ratio metrics and what S&P
sees as limited prospects for a material recovery in property
values, in S&P's view, it is likely that the servicer will take
the necessary steps so that payments received under the whole loan
are applied sequentially to the benefit of the noteholders.

S&P's analysis has assumed the sequential allocation of whole-loan
proceeds, which S&P estimates could initially result in senior
loan amortization of more than GBP4 million a year after payments
of senior loan interest and senior costs.

Due to current LTV ratios, S&P believes that proceeds from any
property sales are unlikely to be sufficient to delever the loan.
S&P does not expect the portfolio market value to recover in the
near term and, in S&P's opinion, further deterioration in market
value is possible.  For these reasons, S&P considers it possible
that the loan will not repay in full by its maturity in 2013.

In S&P's opinion, S&P believes that the servicer may consider that
there may be a benefit in deferring property sales to benefit from
the additional amortization from sequential allocation of whole-
loan proceeds.

The transaction has more than seven years to legal final maturity.
Due to the sequential application of principal repayments to
noteholders following a loan event of default, S&P believes that
full recovery of principal for the class A noteholders is possible
assuming an effective management of any workout of the loan.  S&P
believes that the likelihood of losses being realized by the more
junior classes of notes has increased.

                           Ratings List

                  Alburn Real Estate Capital Ltd.
       GBP188.05 Million Commercial Mortgage-Backed Secured
                       Floating-Rate Notes

      Ratings Lowered and Removed From CreditWatch Negative

                                Ratings
                                -------
          Class           To              From
          -----           --              ----
          A               BBB-            AAA/Watch Neg
          B               BB              AA/Watch Neg
          C               BB-             A/Watch Neg
          D               B               BBB/Watch Neg
          E               B-              BBB/Watch Neg


BRITISH AIRWAYS: Pilots Accept 2.6% Pay Cut, Balpa Says
-------------------------------------------------------
BBC News reports the British Airline Pilots' Association said
British Airways pilots have voted overwhelmingly to accept
a 2.6% pay cut designed to save the airline up to GBP26 million a
year in running costs.

BBC relates more than 90% of pilots accepted the deal, which also
involves a reduction of 20% in certain allowances.

According to BBC, in return for the cut the pilots will receive
shares in BA.  BBC says collectively, they will receive shares in
the airline in three years' time, worth GBP13 million, as part of
the deal.

"We have pressure-tested the company's trading position and cost
base and are satisfied that this step is necessary to help BA
recover its position as one of the world's most successful
airlines," BBC quoted Jim McAuslan, general secretary of Balpa, as
saying.  "Our members have backed that judgment and are leading
the way in contributing to the turnaround plan."

                    About British Airways

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

                     *     *     *

As reported in the Troubled Company Reporter-Europe on July 13,
2009, Moody's lowered the Corporate Family and Probability of
Default Ratings of British Airways plc to Ba3; the senior
unsecured and subordinate ratings have been lowered to B1 and B2,
respectively.  Moody's said the outlook is stable.


CANARGO ENERGY: Oslo Bors to Delist Shares from Trading
-------------------------------------------------------
CanArgo Energy Corporation received a further communication from
the Oslo Bors ASA informing it that a decision on possible
delisting of the Company's shares from the Oslo Bors, for failure
to comply with the Oslo Bors' rules, will be made by the board of
the Oslo Bors at a board meeting on August 26, 2009.  The shares
may be delisted soon after the board has made a decision.

Guernsey, British Isles, CanArgo Energy Corporation (PINK SHEETS:
CANR) (OSLO: CNR) is an independent oil and gas exploration and
production company with its oil and gas operations currently
located in Georgia.


CANTERBURY EUROPE: In Administration; 72 Jobs Affected
------------------------------------------------------
David Costley-Wood and Brian Green from KPMG Restructuring have
been appointed Joint Administrators to Canterbury Europe Limited,
the European trading arm of the Canterbury Group which distributes
branded sports and leisure wear, predominantly for the rugby union
sector.

Canterbury Europe Limited's UK operation is based in Stockport,
Cheshire and employs 86 people.  As a result of the
administration, 72 members of staff have been made redundant.  The
rest of the Canterbury Group, including the global Canterbury
brand, which was founded in New Zealand, is unaffected by the
administration and continues to trade as usual.

Canterbury currently sponsors a number of rugby union and rugby
league teams in the UK and Europe including the Scottish national
team, as well as Leinster, London Wasps and Cardiff.  In addition,
the company also expanded into others sports including football,
cricket and golf, and most notably has sponsorship agreements in
place with Portsmouth Football Club, Lille and Yorkshire and
Hampshire Cricket Clubs.

All sponsorship contracts in Canterbury Europe Limited have been
terminated as a result of the administration, and the affected
clubs will rank as unsecured creditors in relation to any amounts
they were owed for the remainder of the contract.

David Costley-Wood, partner at KPMG Restructuring, commented:
"This administration has been the culmination of difficult
trading, following a period in which Canterbury Europe Limited had
unsuccessfully tried to expand into new areas.  The company has
also been hit by the weakening of the pound, as it imports its
goods from the Far East."

Mr. Costley-Wood continued: "The European business will continue
to trade under the administration while we try to find a buyer for
the business and assets.  The global brand and trade marks are not
affected by the administration of the European business and we
understand that the owners of the Canterbury Group are looking for
a potential acquirer or new investor to lead the next stage of
Canterbury's development."


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-C issued by
Carlisle Castle Funding Group Ltd.

This issuance is a private placement and 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-B PLC, closed on June 15, 2009.

The capital structure differs from the issuances before series
2009-A and series 2009-B, as it comprises five tranches, with a
subordinated unrated class E tranche.

In line with the series 2009-A and series 2009-B issuances, 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 4.25% 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 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-C 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.
GBP425.6 Million Asset-Backed Floating-Rate Notes Series 2009-C

       Class          Rating       Maximum amount (Mil. GBP)
       -----          ------       -------------------------
       A              AAA           300.0
       B              A              44.7
       C              BBB            31.9
       D              BB             42.6
       E              NR              6.4

                         NR — Not rated.


DIADORA UK: In Liquidation; Football Contract Terminated
--------------------------------------------------------
Mark Donaldson at The Scotsman reports that Scotland kit
manufacturer Diadora UK Ltd. has gone into liquidation after
running into financial difficulties early this year.

According to the report, the seven-year relationship with the
Scottish Football Association has been terminated following the
appointment of a receiver, with every British-based employee of
the Italian-owned company made redundant and their contracts
ripped up.  Diadora's current deal with the national team had a
year remaining and the SFA is still due money for the final 12
months of the agreement, the report says.

The report relates SFA officials are in negotiations with the
Italian owners of the company in a bid to recoup some of that
cash, although as one of several creditors it is highly unlikely
they will receive the full outstanding balance.

Based in Macclesfield, Cheshire, Diadora UK Ltd. is a sportswear
manufacturer.


FOUR SEASONS: Halts Sale After Credit Suisse Defer Debt Payment
---------------------------------------------------------------
Anousha Sakoui at The Financial Times reports that the board of
Four Seasons Health Care Group has put off a sale of the business
after Credit Suisse agreed to the restructuring proposal put to
lenders last month in exchange for improved terms.

According to the FT, Credit Suisse, which is also a senior
creditor, agreed to defer a GBP17 million payment due from Four
Seasons until next year and will in exchange for its support of
the restructuring, receive an enhancement to the coupon paid on
that loan.  The FT says the move means the business is now likely
to end up in the hands of its creditors through the process of a
debt-for-equity swap, which will roughly halve Four Seasons'
GBP1.5 billion (US$2.4 billion) of loans.

The FT relates the "special servicer" of the loans Hatfield
Philips said the deferral of the sale for a "short time" is set to
give creditors time to find a solution.  The focus is now on
negotiations between senior creditors and junior creditors on debt
restructuring terms, the FT notes.

                       PIK Holders

The Scotsman reports Four Seasons said the lenders -- holding
so-called payment in kind (PIK) notes -- are now the biggest
obstacle to a successful debt restructuring.  According to the
Scotsman, it is thought the lenders, owed more than GBP200
million, have been holding out for better terms in the
restructuring.  The Scotsman says PIK lenders could defend their
position by threatening a sale of the company, but such a step is
seen as unlikely because a sale now would not generate enough cash
to repay the lowest-rank lenders.  The company, the Scotsman
discloses, owes about GBP1.4 billion but a recent valuation
estimated the company's assets at little more than GBP900 million.

Four Seasons Health Care Group -- http://www.fshc.co.uk/-- is one
of the largest care home (nursing home) operators in the UK.  The
company runs some 300 nursing homes, and its Huntercombe division
operates about eight specialized health care centers (which
provide mental health and rehabilitation services) in England,
Scotland, North Ireland, and the Isle of Man.  Allianz Capital
Partners, the private equity arm of Allianz Group, acquired the
company from Alchemy Partners for GBP775 million in 2004.


GMAC RFC: Fitch Junks Ratings on Two Tranches
---------------------------------------------
Fitch Ratings has downgraded 24 tranches and affirmed 51 others
from the RMAC securities series of non-conforming RMBS
transactions backed by loans originated by GMAC RFC. Rating
Outlooks on eight tranches have been revised to Negative from
Stable.  The downgrades were caused by the deteriorating
performance of the deals in the current negative economic
environment and which deviates considerably from the agency's
initial expectations.  Fitch notes the weakened performance may
partly be attributed to the arrears calculation method used by
lenders which is negatively affected by the falling interest rate
environment.

Vintages from the 2006 and 2007 transactions have all seen reserve
fund draws while RMAC 2005-NS4 had the first reserve fund draw in
the latest interest payment date in June 2009.  RMAC 2006-NS3
fully depleted its reserve fund in June 2009 and has written
losses to the unrated class B1c principal deficiency ledger.  This
unrated collateralized note provides credit enhancement to the
senior notes.

The RMAC transactions (with the exception of RMAC 2007-NS1) differ
from the average UK non-conforming RMBS transaction through not
hedging the potential mismatch between fixed-rate loans and the
appropriate reference rate.  Unlike the 2006 vintage RMAC
transactions, this difference has not had a significant impact on
the 2004 and 2005 vintages; the amount of excess spread generated
throughout the deals has been considerable, and this has been used
in part to cover the difference between the income from the loans
and the amounts payable on the notes.  The vast majority of the
fixed-rate loans in the 2004 and 2005 RMAC vintages have now
converted to variable rates.

The 2006 vintage experienced negative excess spread early in the
life of the deals, due to the lack of fixed/floating rate swaps;
the transaction was paying out considerably more interest payments
due to the increase in Libor in December 2007 and March 2008.
This caused significant stress to the transactions just as the
housing market market was turning and the transactions were seeing
increased weighted-average loss severities.  RMAC 2007-NS1 which
is however hedged, is suffering in the current recession with
fixed rate loans generally paying higher rates than floating rate
loans and therefore the transaction is paying out more to the swap
counterparty than they are receiving in return.  Fitch expects
RMAC 2007-NS1 to fully deplete its reserve fund on the next IPD
and start allocating losses to the rated class B1c PDL.

Deteriorating performance of the transactions is evident in the
rising arrears and losses, the falling prepayment rates,
increasing loss severities (RMAC 2006-NS3 had the highest period
WALS in June 2009 at 42.4%; it also has steep constant default
rate trend suggesting that an increase in repossessions is
expected from the increasing arrears.  Highest arrears are
currently seen in RMAC 2006-NS1 at 27.5% although comparatively
RMAC 2007-NS1 has more than double the level of arrears than the
other RMAC transactions at similar seasoning.

The extent of the rating actions has been limited on the 2004 and
2005 vintages due to better performance history.  Loans that have
been performing for the best part of four or five years are less
likely to default than the newer loans.  Similarly, although the
2004 and 2005 vintages show comparable credit enhancement to the
more recent vintages, the transactions have considerably greater
seasoning.  Finally, these two vintages tended to have initially
lower loan-to-value ratios and have therefore not been as affected
by the current house price declines.

RMAC 2004-NS3 plc:

  -- Class A2a (ISIN XS0200800943): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2c (ISIN XS0200802568): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1 (ISIN XS0200802725): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M2 (ISIN XS0200803962): downgraded to 'A' from 'AA-';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-2'

  -- Class B (ISIN XS0200804770): downgraded to 'BBB' from 'BBB+';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-3'

RMAC 2004-NSP4 plc:

  -- Class A2 (ISIN XS0206944240): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1 (ISIN XS0206944596): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M2 (ISIN XS0206944836): affirmed at 'AA'; Outlook
     revised to Negative from Positive; assigned Loss Severity
     Rating 'LS-2'

  -- Class B1 (ISIN XS0206945056): affirmed at 'A'; Outlook
     revised to Negative from Stable; assigned Loss Severity
     Rating 'LS-3'

RMAC 2005-NS1 plc:

  -- Class A2a (ISIN XS0212187826): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2c (ISIN XS0212189103): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1 (ISIN XS0212190028): affirmed at 'AA+'; Outlook
     revised to Stable from Positive; assigned Loss Severity
     Rating 'LS-1'

  -- Class M2 (ISIN XS0212191851): downgraded to 'BBB' from 'AA-';
     Outlook Stable; assigned Loss Severity Rating 'LS-2'

  -- Class B1 (ISIN XS0212192669): downgraded to 'B' from 'BBB+';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-3'

RMAC 2005-NSP2 plc:

  -- Class A2a (ISIN XS0220953235): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2b (ISIN XS0220954712): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2c (ISIN XS0220957061): affirmed at 'AAA'. Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1a (ISIN XS0220957657): affirmed at 'AAA'. Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M1c (ISIN XS0220959356): affirmed at 'AAA'. Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M2a (ISIN XS0220958036): affirmed at 'A+'; Outlook
     revised to Stable from Positive; assigned Loss Severity
     Rating 'LS-3'

  -- Class M2c (ISIN XS0220959604): affirmed at 'A+'; Outlook
     revised to Stable from Positive; assigned Loss Severity
     Rating 'LS-3'

  -- Class B1a (ISIN XS0220958465): affirmed at 'BBB'; Outlook
     revised to Negative from Positive; assigned Loss Severity
     Rating 'LS-3'

  -- Class B1c (ISIN XS0220961097): affirmed at 'BBB'; Outlook
     revised to Negative from Positive; assigned Loss Severity
     Rating 'LS-3'

RMAC 2005-NS3 plc:

  -- Class A2a (ISIN XS0230220443): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2c (ISIN XS0230220872): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1a (ISIN XS0230221250): affirmed at 'AA+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M1c (ISIN XS0230221334): affirmed at 'AA+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M2a (ISIN XS0230221763): affirmed at 'A+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M2c (ISIN XS0230222068): affirmed at 'A+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class B1a (ISIN XS0230222225): downgraded to 'BBB-' from
     'BBB'; Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-3'

  -- Class B1c (ISIN XS0230222498): downgraded to 'BBB-' from
     'BBB'; Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-3'

RMAC 2005-NS4 plc:

  -- Class A3 (ISIN XS0235775854): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-2'

  -- Class M1 (ISIN XS0235781159): affirmed at 'AA+'; Outlook
     Positive; assigned Loss Severity Rating 'LS-4'

  -- Class M2 (ISIN XS0235778106): affirmed at 'A+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-4'

  -- Class B1 (ISIN XS0235782801): downgraded to 'BB' from 'BBB';
     Outlook revised Negative from Stable; assigned Loss Severity
     Rating 'LS-4'

RMAC Securities No.1 Plc (Series 2006-NS1):

  -- Class A2a (ISIN XS0248588047): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2c (ISIN XS0248595091): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1a (ISIN XS0248589524): affirmed at 'AA+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M1c (ISIN XS0248596735): affirmed at 'AA+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M2a (ISIN XS0248590613): affirmed at 'A'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class M2c (ISIN XS0248595687): affirmed at 'A'; Outlook
     Stable; assigned Loss Severity Rating 'LS-3'

  -- Class B1c (ISIN XS0248597543): affirmed at 'BB'; Outlook
     Negative; assigned Loss Severity Rating 'LS-3'

RMAC Securities No.1 Plc (Series 2006-NS2):

  -- Class A2a (ISIN XS0257367960): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2c (ISIN XS0257369073): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1a (ISIN XS0257369156): affirmed at 'AA+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-2'

  -- Class M1c (ISIN XS0257370329): affirmed at 'AA+'; Outlook
     Stable; assigned Loss Severity Rating 'LS-2'

  -- Class M2c (ISIN XS0257371137): downgraded to 'A' from 'A+';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-3'

  -- Class B1a (ISIN XS0257371301): downgraded to 'BB-' from 'BB';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class B1c (ISIN XS0257372374): downgraded to 'BB-' from 'BB';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

RMAC Securities No.1 Plc (Series 2006-NS3):

  -- Class A2a (ISIN XS0268014353): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-2'

  -- Class M1a (ISIN XS0268021721): downgraded to 'A' from 'AA';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-3'

  -- Class M1c (ISIN XS0268024071): downgraded to 'A' from 'AA';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-3'

  -- Class M2c (ISIN XS0268027769): downgraded to 'BB' from 'BBB';
     Outlook Negative; assigned Loss Severity Rating 'LS-4'

RMAC Securities No.1 Plc (Series 2006-NS4):

  -- Class A1a (ISIN XS0277394747): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A1b (ISIN XS0277801725): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A1c (ISIN XS0277401625): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2a (ISIN XS0277404728): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A3a (ISIN XS0277409446): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity Rating 'LS-1'

  -- Class M1a (ISIN XS0277411004): affirmed at 'AA-'; Outlook
     Negative; assigned Loss Severity Rating 'LS-1'

  -- Class M1c (ISIN XS0277437223): affirmed at 'AA-'; Outlook
     Negative; assigned Loss Severity Rating 'LS-1'

  -- Class M2a (ISIN XS0277457841): affirmed at 'A-'; Outlook
     Negative; assigned Loss Severity Rating 'LS-3'

  -- Class M2c (ISIN XS0277445671): affirmed at 'A-'; Outlook
     Negative; assigned Loss Severity Rating 'LS-3'

  -- Class B1a (ISIN XS0277450838): affirmed at 'B'; Outlook
     Negative; assigned Loss Severity Rating 'LS-2'

  -- Class B1c (ISIN XS0277453691): affirmed at 'B'; Outlook
     Negative; assigned Loss Severity Rating 'LS-2'

RMAC Securities No.1 Plc (Series 2007-NS1):

  -- Class A1a (ISIN XS0307485903): downgraded to 'AA' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A1b (ISIN XS0307488675): downgraded to 'AA' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A1c (ISIN XS0307486976): downgraded to 'AA' from 'AAA';
     Outlook Stable; assigned Loss Severity Rating 'LS-1'

  -- Class A2a (ISIN XS0307493162): downgraded to 'AA' from 'AAA';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-1'

  -- Class A2b (ISIN XS0307489566): downgraded to 'AA' from 'AAA';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-1'

  -- Class A2c (ISIN XS0307505601): downgraded to 'AA' from 'AAA';
     Outlook revised to Negative from Stable; assigned Loss
     Severity Rating 'LS-1'

  -- Class M1a (ISIN XS0307496264): downgraded to 'BBB' from 'AA-
     '; Outlook Negative; assigned Loss Severity Rating 'LS-2'

  -- Class M1c (ISIN XS0307506674): downgraded to 'BBB' from 'AA-
     '; Outlook Negative; assigned Loss Severity Rating 'LS-2'

  -- Class M2c (ISIN XS0307511591): downgraded to 'B' from 'BBB';
     Outlook Negative; assigned Loss Severity Rating 'LS-3'

  -- Class B1a (ISIN XS0307500479): downgraded to 'CC' from 'B';
     Recovery Rating 'RR6' assigned; assigned Loss Severity Rating
     'LS-2'

  -- Class B1c (ISIN XS0307512219): downgraded to 'CC' from 'B';
     Recover Rating 'RR6' assigned; assigned Loss Severity Rating
     'LS-2'


KEYDATA INVESTMENT: Chief Executive Lent US$3.25MM to David Elias
-----------------------------------------------------------------
Stanley Pignal at The Financial Times reports that Stewart Ford,
the chief executive of Keydata, lent US$3.25 million to David
Elias, who managed funds that the specialist investment firm sold
on to its clients.

The FT relates according to the May summary judgment of a High
Court case brought by Mr. Ford against Mr. Elias, the loan, made
in October last year, was supplemented by a further US$1 million
in December, as well as a bond expressed to be worth US$2.1
million.

The FT says both loans and the court fight occurred during the
period when SLS Capital, a Luxembourg company controlled by
Mr. Elias failed to make regular interest payments to Keydata
investors.  Citing, PricewaterhouseCoopers, which was appointed
Keydata's administrator in June, the FT discloses SLS Capital has
not made payments to investors since October and the underlying
assets are missing.

The FT notes several people familiar with the situation say that
Mr. Ford lost a lot of money at the hands of Mr. Elias,
who reportedly died of complications linked to pneumonia in May.

                              Probe

As reported in the Troubled Company Reporter-Europe on July 2,
2009, the FT said that the Serious Fraud had been called in
to examine a suspected GBP103 million fraud at Keydata.
According to the FT, PwC said that as a result of the
irregularities it had uncovered, a planned sale of the
firm, which had more than GBP3 billion in assets under management,
could not go ahead.  The FT related PwC said it had found that
life insurance policies backing several Keydata bonds had been
sold and the proceeds "misappropriated", while payments to
investors had been made "in an irregular fashion" out of the
company's own funds.  According to the Times, Keydata mis-sold
GBP250 million of income bonds and savings plans to 30,000
individual customers.  The Times disclosed that, when the firm
went into administration, it had GBP2.8 billion of assets, about
GBP700 million of which were investments taken out by individual
savers.  There were also irregularities in 23,000 investments in
Lifemark, another Keydata investment, the Times said.

As reported in the Troubled Company Reporter-Europe on June 10,
2009, Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers
LLP were appointed joint administrators of KIS on June 8, 2009.
The appointment was made based on an application to Court by the
Financial Services Authority (FSA) on insolvency grounds.

KIS designs, distributes and administers structured investment
products.  KIS operates from three locations, being London,
Glasgow and Reading and administers its own products as well as
portfolios for third parties.


LEHMAN BROTHERS: PwC Recovers US$8.7-Bil. for U.K. Units
------------------------------------------------------
The joint administrators of Lehman Brothers International (Europe)
updated the creditor community July 15 with the issue of their
progress report for the last six months.

The administrators are pursuing the objective of achieving a
better result for LBIE's creditors as a whole than would be likely
if LBIE were immediately wound up.  To that end the report
provides details of the work undertaken and progress made towards
achieving that aim.

Steve Pearson, joint administrator and partner at
PricewaterhouseCoopers LLP said:  “The collapse of Lehman Brothers
last September was one of the defining moments of the current
economic and financial crisis and we stated at the time that the
administration of Lehman Brothers International (Europe) would be
an exceptionally complex task.  Six months into the
administration, we are pleased to be able to update the creditor
community with the progress we have made.  Key achievements to
date include the recovery of US$8.7 billion and gaining control of
over US$35 billion in securities.

"In the last six months, we have been working to implement a
structure which will maximise recoveries and enable claims to be
agreed.  This has now been achieved and results are coming
through.  Returning assets to clients remains a key priority.

"The task continues to be challenging and we are working closely
with regulators, institutions and counterparties amongst other
stakeholders to ensure the best outcome."

Key achievements to date:

   * LBIE's equities business was sold to Nomura Holdings Inc.
     Over 2,400 jobs were preserved and related employee claims
     against the estate were mitigated

   * Control has been asserted over the assets of the Company and
     its clients, including over US$35.5 billion in securities

   * US$8.7 billion has been recovered to date and is held as cash
     on deposit or investments

   * An interim mechanism for the return of assets has been
     implemented.  US$12.2 billion (46%) of Client Assets have
     been returned or released to March 14, 2009

   * Policies have been formed for handling the estimated 839,000
     pending and failed trades, including deleting many from
     exchanges

   * The liquidators have identified and valued the majority of
     LBIE's estimated 130,000 over-the-counter derivative
     contracts

   * Revised employee reward and retention processes have been
     implemented for the retained 360 employees.  These focus
     activities and reward on the objectives of the
     Administration

   * A mechanism for the systematic return of Client Assets has
     been identified, shared with the High Court, the Committee,
     key industry groups and the market.

   * The IT environment, critical to the protection and recovery
     of value from the estate, has been stabilized and annual IT
     costs have been reduced by over US$200 million per annum

   * The exit from overseas branches has been largely concluded,
     realizing over US$150 million to date.

Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis,
partners at PricewaterhouseCoopers LLP, were appointed as joint
administrators to Lehman Brothers International Europe and other
related entities on September 15, 2008.  The joint administrators
have been appointed to wind down the business in as orderly a
manner as possible.

Tom Cahill at Bloomberg News reported that Lehman Brothers
Holdings Inc. may return hedge-fund assets as soon as next year
that were frozen when LBHI filed for Chapter 11.  PwC, according
to the report, plans to ask a U.K. court to block any creditor
claims for assets after this year, the accounting firm said in a
statement.  That would allow PwC to return money Lehman had held
in trust for fund managers as soon as the first quarter of 2010,
Mr. Cahill said.

                   About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for Chapter 11 bankruptcy September 15, 2008 (Bankr.
S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on
September 16 (Case No. 08-13600).  Several other affiliates
followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
United States District Court for the Southern District of New
York, entered an order commencing liquidation of Lehman Brothers,
Inc., pursuant to the provisions of the Securities Investor
Protection Act in the case captioned Securities Investor
Protection Corporation v. Lehman Brothers Inc., Case No. 08-CIV-
8119 (GEL).  James W. Giddens has been appointed as trustee for
the SIPA liquidation of the business of LBI

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.  Nomura Holdings Inc., the
largest brokerage house in Japan, on September 22 reached an
agreement to purchased Lehman Brothers Holdings, Inc.'s operations
in Europe and the Middle East less than 24 hours after it reached
a deal to buy Lehman's operations in the Asia Pacific for
US$225 million.  Nomura paid only US$2 dollars for Lehman's
investment banking and equities businesses in Europe, but agreed
to retain most of Lehman's employees.

            International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of
JPY4 trillion -- US$38 billion).  Lehman Brothers Japan Inc.
reported about JPY3.4 trillion (US$33 billion) in liabilities in
its petition.  Akio Katsuragi, a former Morgan Stanley executive,
runs Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.

(Lehman Brothers Bankruptcy News; Bankruptcy Creditors' Service,
Inc., <http://bankrupt.com/newsstand/>or 215/945-7000).


LLOYDS BANKING: UKFI Says Early Sale of 43% Stake Not an Option
----------------------------------------------------------------
Katherine Griffiths at The Times reports that the UK Financial
Investments, the body set up to manage the government's stakes in
Royal Bank of Scotland Group plc and Lloyds Banking Group plc,
said it could start to sell part of its stakes in the banks within
months, but it will retain the majority of its investment for
several years.

UKFI, the Times discloses, is in charge of the 70 per cent stake
that the government currently owns in RBS and is responsible for
its 43 per cent holding in Lloyds Banking Group, formed by the
merger of Lloyds and HBOS.  The report recalls the government
saved RBS from collapse and shored up Lloyds and HBOS with a GBP37
billion bailout last October.

According to the Times, UKFI is likely to sell down its stakes one
at a time.  The methods under consideration include public share
offerings, exchangeable bonds and private placements, the Times
says.

"This cannot be a short-term game," the Times quoted John Kingman,
UKFI's chief executive  as saying, adding that there had been
"absolutely no pressure from the Government" to begin a sales
process early.  Mr. Kingman, as cited by guardian.co.uk, said that
while the public "rightly expected" to get their money back,
selling too early was not an option.  Jill Treanor at
guardian.co.uk reports the UKFI calculates the average buy-in
price for Lloyds is 122.6p and the 50.5p for RBS.  Both are
trading below these levels, guardian.co.uk states.

The Times says UKFI's loss on its stakes in RBS and Lloyds was
GBP10.9 billion at June 30.  Credit Suisse put the loss at GBP25
billion if the price of buying insurance for the banks' toxic
assets through the asset protection scheme is included,
guardian.co.uk discloses.

The body, guardian.co.uk notes, will also eventually take control
of Northern Rock plc and Bradford & Bingley plc.

                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.


LONDON WELSH: Has Until Friday to Secure Sale
---------------------------------------------
Bob Bensch at Bloomberg News reports that London Welsh Rugby Club
must be sold within the next week or lose its place in the second
tier of the English game.

Bloomberg relates the RFU said in a statement that the club's
administrator must complete a sale by 5:00 p.m. London time on
Friday, July 17.

Bloomberg says the RFU is requiring that any investor prove it has
the funds to support the club for at least two years and that all
of the club's creditors, excluding shareholders and directors,
must be paid.

As reported in the Troubled Company Reporter-Europe on June 26,
2009, Carl Jackson and Gareth Roberts of leading turnaround,
restructuring and insolvency specialist, Tenon Recovery, were
appointed joint administrators to London Welsh Rugby Club on
June 23, 2009.

London Welsh Rugby Club, founded in 1885 and now in the top six of
National Division One, has played a vital role both in the local
community and in British Rugby.  Around 177 Welsh international
players have played for the club and a further 43 of these went on
to join the British Lions squad.

The club recently made the decision to turn professional and has
developed a three-year plan to reach the Guinness Premiership.
However, investment in top quality players and experienced
training and coaching staff has come at great personal cost to the
principal investor and Chairman of the club, Kelvin Bryon.

For London Welsh to progress towards promotion to the Premiership,
the club will need to secure additional investment from either
another individual or a consortium of investors.  It is hoping to
generate interest of an additional GBP1 to GBP1.5 million a
season.

There are sufficient funds available for the club to continue to
operate for one more month but without additional income, the club
will be unable to continue to trade in its present form.  This is
likely to result in exclusion from the Championship and the
British and Irish Cup by the RFU and the club will revert to
playing local level rugby.


MG ROVER: Former Owners Probed for Allegedly Undervaluing Assets
----------------------------------------------------------------
Tim Webb at guardian.co.uk reports that the liquidators of MG
Rover are investigating whether its former owners, the Phoenix
Four, profited by selling off the carmaker's assets too cheaply.

The report relates Rob Hunt, partner at PricewaterhouseCoopers,
said that if any evidence of such transactions during the Phoenix
Four's five-year ownership of MG Rover were found, it could lead
to the former owners being disqualified as directors.

According to the report, PwC is still sorting through creditors'
claims on MG Rover's remaining assets.  The report notes
Mr. Hunt said that the process could take another 18 months.  The
report says only when it is concluded would any evidence of the
former directors being involved in transactions undervaluing MG
Rover's assets be passed to the government and potentially the
Serious Fraud Office.

PwC, the report states, has so far raised GBP43 million by selling
MG Rover's assets, such as property.  The liquidator, the report
discloses, is handling claims of GBP700 million, most of which
relate to former employees' pensions.

As reported in the Troubled Company Reporter-Europe on July 8,
2009, the FT said Lord Mandelson, the Business Secretary, asked
the SFO to investigate the collapse of MG Rover four years ago.

                     About MG Rover

Headquartered in Birmingham, United Kingdom, MG Rover Group
Limited -- http://www1.mg-rover.com/-- produced automobiles under
the Rover and MG brands, together with engine maker Powertrain
Ltd.  Previously owned by Phoenix Venture Holdings, the company
faced huge losses in recent years, reaching GBP64.1 million in
2004, which were blamed on reduced sales.

MG Rover collapsed on April 8, 2005, after a tie-up with China's
largest carmaker, Shanghai Automotive Industry Corp., failed to
materialize.  It appointed Ian Powell, Tony Lomas and Rob Hunt,
partners in PricewaterhouseCoopers, as joint administrators.  The
crisis left 6,000 people jobless, and caused a domino effect on
related businesses, particularly in the West Midlands.  Days
later, eight European subsidiaries -- MG Rover Deutschland GmbH;
MG Rover Nederland B.V.; MG. Rover Belux S.A./N.V.; MG Rover
Espana S.A.; MG Rover Italia S.p.A.; MG Rover Portugal-
Veiculos e Pecas LDA; Rover France S.A.S., and Rover Ireland
Limited -- were placed into administration.


MONEX LIMITED: In Administration; Vantis Appointed
--------------------------------------------------
Monex Limited entered into administration on July 7, 2009.
Jason Baker and Geoffrey Rowley, Client Partners at Vantis
Business Recovery Services (BRS), a division of Vantis, the UK
accounting, tax and business advisory group, were appointed as
Joint Administrators of the company.

Monex Limited, a haulage and storage business, based in Gwent,
South Wales, entered into administration following the loss of
some customers and as a result of the current economic downturn.
The haulage operation of the business has ceased to trade and a
number of redundancies have been made.

Administrators are seeking to find a purchaser for the storage
operation of the business, which is currently being traded with a
view to a sale as a going concern.  The majority of staff working
within this operation have been retained in order to continue the
efficient running of the business.

Commenting on the case, Jason Baker said: "We are endeavouring to
locate a purchaser for the business and assets of Monex Ltd in
order to safeguard the storage operation and, thereby, preserve
the jobs of the remaining staff."


QUORN BUSINESS: Sold to Meon Valley; 25 Jobs Secured
----------------------------------------------------
Richard Philpott KPMG Restructuring, joint administrator of Quorn
Business Travel Ltd based in Thurmaston, Leicester, said the
company's business and assets have been sold as a going concern to
Hampshire-based Meon Valley Business Travel, a 24 hour corporate
assistance and repatriation travel group.  The transaction means
that the jobs of 25 employees have been saved.

James Beagrie, managing director at Meon Valley Business Travel
said: "This moved quickly, it is a tragedy the parent group
couldn't survive the current climate but we have admired Quorn as
the 'jewel in the crown' for some time, so the opportunity to take
on the team was a gift.  It's a privilege to work with such
exceptionally talented people and a perfect fit for the Meon
Valley Travel family."

Commenting on the sale, Richard Philpott said: "We are pleased to
have sold Quorn Business Travel Ltd, preserving 25 local jobs and
allowing the business to continue trading without any
interruption."

Administrators were appointed to Quorn Business Travel on July 8,
2009.  It is the sister company of corporate event companies THA
Group Ltd and Thomas Hannah & Associates Ltd, which Richard
Philpott and Mark Orton of KPMG Restructuring were appointed joint
administrators of on July 3, 2009.


ROYAL BANK: UKFI Says Early Sale of 70% Stake Not an Option
-----------------------------------------------------------
Katherine Griffiths at The Times reports that the UK Financial
Investments, the body set up to manage the government's stakes in
Royal Bank of Scotland Group plc and Lloyds Banking Group plc,
said it could start to sell part of its stakes in the banks within
months, but it will retain the majority of its investment for
several years.

UKFI, the Times discloses, is in charge of the 70 per cent stake
that the government currently owns in RBS and is responsible for
its 43 per cent holding in Lloyds Banking Group, formed by the
merger of Lloyds and HBOS.  The report recalls the government
saved RBS from collapse and shored up Lloyds and HBOS with a GBP37
billion bailout last October.

According to the Times, UKFI is likely to sell down its stakes one
at a time.  The methods under consideration include public share
offerings, exchangeable bonds and private placements, the Times
says.

"This cannot be a short-term game," the Times quoted John Kingman,
UKFI's chief executive  as saying, adding that there had been
"absolutely no pressure from the Government" to begin a sales
process early.  Mr. Kingman, as cited by guardian.co.uk, said that
while the public "rightly expected" to get their money back,
selling too early was not an option.  Jill Treanor at
guardian.co.uk reports the UKFI calculates the average buy-in
price for Lloyds is 122.6p and the 50.5p for RBS.  Both are
trading below these levels, guardian.co.uk states.

The Times says UKFI's loss on its stakes in RBS and Lloyds was
GBP10.9 billion at June 30.  Credit Suisse put the loss at GBP25
billion if the price of buying insurance for the banks' toxic
assets through the asset protection scheme is included,
guardian.co.uk discloses.

The body, guardian.co.uk notes, will also eventually take control
of Northern Rock plc and Bradford & Bingley plc.

                             About RBS

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

As previously reported in the Troubled Company Reporter-Europe,
risky investing and lending by the previous management brought RBS
close to collapse and required a public bail-out.  RBS is now 70%
owned by the government.


===================
U Z B E K I S T A N
===================


AGROBANK OJSC: Fitch Affirms Individual Rating at 'D/E'
-------------------------------------------------------
Fitch Ratings has upgraded Uzbekistan-based OJSC Agrobank's and
Uzpromstroybank's Long-term Issuer Default Ratings to 'B' from
'B-'.  The Long-term IDR of Asaka Bank is affirmed at 'B'.

The upgrades of AB and UPSB follow recent equity issues by the two
banks which have resulted in state bodies -- the Ministry of
Finance and the Uzbekistan Fund for Reconstruction and Development
-- together holding majority stakes in both banks and their
Supervisory Boards now being chaired by the Prime Minister and
Deputy Prime Minister.  Taking into account the more direct and
visible government control of the banks, Fitch considers there to
be now less uncertainty about the authorities' propensity to
support the banks in case of need.  Asaka remains majority owned
by the MOF and UFRD, and all three banks have significant domestic
franchises and operate to a large degree as agents of government
policy in serving particular sectors of the economy.  Taking into
account these factors, Fitch now factors similar support
expectations into its ratings of the three banks.

Fitch's view of the probability of support from Uzbek authorities
to the banks is constrained by Fitch's assessment of the
sovereign's own credit profile.  At the same time, sovereign
resources are considerable relative to the size of the national
banking sector, whose liabilities were equal to a moderate
estimated 28% of GDP at end-2008 and consisted mainly of deposits
of domestic customers and placements by government bodies.  In
particular, Fitch understands that sovereign foreign currency
reserves of around US$9.5bn at end-2008 exceeded external banking
liabilities by 8x-10x, with a large majority of banks' foreign
borrowings already guaranteed by the government and/or obtained
from international financial institutions.  Further movements in
the IDRs of AB, Asaka and UPSB will likely be driven by changes in
Fitch's assessment of Uzbekistan's sovereign credit profile, and
Fitch's view of the ability and propensity of the authorities to
support the banks in case of need.

The 'D/E' Individual rating of AB reflects the bank's size, which
is small by international standards, its high-risk profile given
its single-sector concentration (loans to agricultural companies
represented 73% of end-5M09 loans), weak profitability and the
challenging operating environment.  At the same time, the rating
considers the bank's currently manageable loan impairment levels,
and limited refinancing and market risk.  Upside for the bank's
Individual rating is currently limited, but AB's stand-alone
credit profile could benefit from growth of franchise, a notable
improvement in profitability and improvements in the Uzbek
operating environment.  The planned further equity increase in
H209, following that in Q109, will also provide at least short-
term support to AB's currently modest capitalization.  The major
risk to which AB is exposed is a failure in any year of the cotton
or grain crop, which could result in large credit losses and,
possibly, the need for external support, thus causing a downgrade
of the Individual rating.

Agrobank was established in 1995 as Pakhta Bank and was
reorganized and renamed in Q109.  The reorganization involved the
subsequent takeover of the business of the smaller Uzbek bank,
Gallabank, which specialized in servicing grain producers.  At
end-Q109, AB was the fourth-largest bank in the country, holding
around 9% of sector assets.  AB plays a central role in delivering
agricultural credit, mainly to cotton and grain producers, in
Uzbekistan.

The 'D/E' Individual rating of Asaka considers the bank's rapid
loan growth (up 27% in 2008, with a similar trend in 5M09),
concentrated balance sheet (both by segment and counterparty), the
weak quality of directed lending assets (rescheduled loans and
those under litigation accounted for a significant, albeit
reduced, 13% of end-2008 loans, with a further 5.7% of loans
rescheduled in 5M09), modest profitability and the challenging
operating environment.  The rating also considers the bank's
adequate capitalization (Basel I tier 1 and total capital ratios
were 28.8% and 31.7%, respectively, at end-2008), which has been
further supported by the new large capital injection in Q109,
planned to be followed by another in H209.  Upside potential for
the bank's Individual rating is currently limited, but Asaka's
stand-alone credit profile could benefit from franchise
diversification, a better track record on asset quality, a notable
improvement in profitability and a stronger operating environment.
Downward pressure could result from further deterioration in loan
quality, combined with significant reductions of capital ratios.

Asaka was set up in 1995 (by a decree of the Cabinet of Ministers
of Uzbekistan), initially to service the needs of the automobile
industry.  Since then, the bank's client base has diversified to
include companies from the textile, trade, manufacturing,
pharmaceuticals and construction sectors.  As at end-Q109, Asaka
was the third-largest bank in Uzbekistan, holding nearly 12% of
sector assets.  The bank serves clients through a broad branch
network which covers all 13 regional centres of Uzbekistan.

The 'D/E' Individual rating of UPSB reflects its small size, high
concentrations in the loan portfolio and customer funding, and
certain weaknesses in the operating environment.  At the same
time, the rating considers UPSB's currently reasonable capital
adequacy (Basel I total capital ratio was 16.9% at end-2008).
UPSB's asset quality has been manageable to date, with the largest
problem exposure serviced by the state under its guarantee
obligation.  Upside potential for the bank's Individual rating is
limited, but UPSB's stand-alone credit profile could benefit from
diversification of the bank's franchise and customer base and
improvement in asset quality.  Significant credit losses or a
marked deterioration in UPSB's liquidity would exert downward
pressure on the Individual rating.

UPSB was established on the basis of a branch of the Soviet
Industry and Construction Bank.  The bank's main function is to
contribute to the development of local industries by granting
long-term loans for capital investment purposes.  UPSB's main
clientele includes strategic national corporations from the
energy, telecommunication, chemical and transportation industries.
At end-Q109, UPSB was the second-largest bank in Uzbekistan, with
a market share of 12%.

The Individual rating reflects the standalone strength of a bank
while the Support rating reflects the probability of support from
a majority shareholder and/or the government.

Rating actions are:

OJSC Agrobank:

  -- Long-term IDR: upgraded to 'B' from 'B-'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: upgraded to '4' from '5'
  -- Support Rating Floor: revised to 'B' from 'B-'

Asaka Bank:

  -- Long-term IDR: affirmed at 'B'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Uzpromstoybank:

  -- Long-term IDR: upgraded to 'B' from 'B-'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: upgraded to '4' from '5'
  -- Support Rating Floor: revised to 'B' from 'B-'


ASAKA BANK: Fitch Affirms 'B' Long-Term Issuer Default Rating
------------------------------------------------------------
Fitch Ratings has upgraded Uzbekistan-based OJSC Agrobank's and
Uzpromstroybank's Long-term Issuer Default Ratings to 'B' from
'B-'.  The Long-term IDR of Asaka Bank is affirmed at 'B'.

The upgrades of AB and UPSB follow recent equity issues by the two
banks which have resulted in state bodies -- the Ministry of
Finance and the Uzbekistan Fund for Reconstruction and Development
-- together holding majority stakes in both banks and their
Supervisory Boards now being chaired by the Prime Minister and
Deputy Prime Minister.  Taking into account the more direct and
visible government control of the banks, Fitch considers there to
be now less uncertainty about the authorities' propensity to
support the banks in case of need.  Asaka remains majority owned
by the MOF and UFRD, and all three banks have significant domestic
franchises and operate to a large degree as agents of government
policy in serving particular sectors of the economy.  Taking into
account these factors, Fitch now factors similar support
expectations into its ratings of the three banks.

Fitch's view of the probability of support from Uzbek authorities
to the banks is constrained by Fitch's assessment of the
sovereign's own credit profile.  At the same time, sovereign
resources are considerable relative to the size of the national
banking sector, whose liabilities were equal to a moderate
estimated 28% of GDP at end-2008 and consisted mainly of deposits
of domestic customers and placements by government bodies.  In
particular, Fitch understands that sovereign foreign currency
reserves of around US$9.5bn at end-2008 exceeded external banking
liabilities by 8x-10x, with a large majority of banks' foreign
borrowings already guaranteed by the government and/or obtained
from international financial institutions.  Further movements in
the IDRs of AB, Asaka and UPSB will likely be driven by changes in
Fitch's assessment of Uzbekistan's sovereign credit profile, and
Fitch's view of the ability and propensity of the authorities to
support the banks in case of need.

The 'D/E' Individual rating of AB reflects the bank's size, which
is small by international standards, its high-risk profile given
its single-sector concentration (loans to agricultural companies
represented 73% of end-5M09 loans), weak profitability and the
challenging operating environment.  At the same time, the rating
considers the bank's currently manageable loan impairment levels,
and limited refinancing and market risk.  Upside for the bank's
Individual rating is currently limited, but AB's stand-alone
credit profile could benefit from growth of franchise, a notable
improvement in profitability and improvements in the Uzbek
operating environment.  The planned further equity increase in
H209, following that in Q109, will also provide at least short-
term support to AB's currently modest capitalization.  The major
risk to which AB is exposed is a failure in any year of the cotton
or grain crop, which could result in large credit losses and,
possibly, the need for external support, thus causing a downgrade
of the Individual rating.

Agrobank was established in 1995 as Pakhta Bank and was
reorganized and renamed in Q109.  The reorganization involved the
subsequent takeover of the business of the smaller Uzbek bank,
Gallabank, which specialized in servicing grain producers.  At
end-Q109, AB was the fourth-largest bank in the country, holding
around 9% of sector assets.  AB plays a central role in delivering
agricultural credit, mainly to cotton and grain producers, in
Uzbekistan.

The 'D/E' Individual rating of Asaka considers the bank's rapid
loan growth (up 27% in 2008, with a similar trend in 5M09),
concentrated balance sheet (both by segment and counterparty), the
weak quality of directed lending assets (rescheduled loans and
those under litigation accounted for a significant, albeit
reduced, 13% of end-2008 loans, with a further 5.7% of loans
rescheduled in 5M09), modest profitability and the challenging
operating environment.  The rating also considers the bank's
adequate capitalization (Basel I tier 1 and total capital ratios
were 28.8% and 31.7%, respectively, at end-2008), which has been
further supported by the new large capital injection in Q109,
planned to be followed by another in H209.  Upside potential for
the bank's Individual rating is currently limited, but Asaka's
stand-alone credit profile could benefit from franchise
diversification, a better track record on asset quality, a notable
improvement in profitability and a stronger operating environment.
Downward pressure could result from further deterioration in loan
quality, combined with significant reductions of capital ratios.

Asaka was set up in 1995 (by a decree of the Cabinet of Ministers
of Uzbekistan), initially to service the needs of the automobile
industry.  Since then, the bank's client base has diversified to
include companies from the textile, trade, manufacturing,
pharmaceuticals and construction sectors.  As at end-Q109, Asaka
was the third-largest bank in Uzbekistan, holding nearly 12% of
sector assets.  The bank serves clients through a broad branch
network which covers all 13 regional centres of Uzbekistan.

The 'D/E' Individual rating of UPSB reflects its small size, high
concentrations in the loan portfolio and customer funding, and
certain weaknesses in the operating environment.  At the same
time, the rating considers UPSB's currently reasonable capital
adequacy (Basel I total capital ratio was 16.9% at end-2008).
UPSB's asset quality has been manageable to date, with the largest
problem exposure serviced by the state under its guarantee
obligation.  Upside potential for the bank's Individual rating is
limited, but UPSB's stand-alone credit profile could benefit from
diversification of the bank's franchise and customer base and
improvement in asset quality.  Significant credit losses or a
marked deterioration in UPSB's liquidity would exert downward
pressure on the Individual rating.

UPSB was established on the basis of a branch of the Soviet
Industry and Construction Bank.  The bank's main function is to
contribute to the development of local industries by granting
long-term loans for capital investment purposes.  UPSB's main
clientele includes strategic national corporations from the
energy, telecommunication, chemical and transportation industries.
At end-Q109, UPSB was the second-largest bank in Uzbekistan, with
a market share of 12%.

The Individual rating reflects the standalone strength of a bank
while the Support rating reflects the probability of support from
a majority shareholder and/or the government.

Rating actions are:

OJSC Agrobank:

  -- Long-term IDR: upgraded to 'B' from 'B-'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: upgraded to '4' from '5'
  -- Support Rating Floor: revised to 'B' from 'B-'

Asaka Bank:

  -- Long-term IDR: affirmed at 'B'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Uzpromstoybank:

  -- Long-term IDR: upgraded to 'B' from 'B-'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: upgraded to '4' from '5'
  -- Support Rating Floor: revised to 'B' from 'B-'


UZPROMSTROYBANK: Fitch Upgrades Issuer Default Rating to 'B'
------------------------------------------------------------
Fitch Ratings has upgraded Uzbekistan-based OJSC Agrobank's and
Uzpromstroybank's Long-term Issuer Default Ratings to 'B' from
'B-'.  The Long-term IDR of Asaka Bank is affirmed at 'B'.

The upgrades of AB and UPSB follow recent equity issues by the two
banks which have resulted in state bodies -- the Ministry of
Finance and the Uzbekistan Fund for Reconstruction and Development
-- together holding majority stakes in both banks and their
Supervisory Boards now being chaired by the Prime Minister and
Deputy Prime Minister.  Taking into account the more direct and
visible government control of the banks, Fitch considers there to
be now less uncertainty about the authorities' propensity to
support the banks in case of need.  Asaka remains majority owned
by the MOF and UFRD, and all three banks have significant domestic
franchises and operate to a large degree as agents of government
policy in serving particular sectors of the economy.  Taking into
account these factors, Fitch now factors similar support
expectations into its ratings of the three banks.

Fitch's view of the probability of support from Uzbek authorities
to the banks is constrained by Fitch's assessment of the
sovereign's own credit profile.  At the same time, sovereign
resources are considerable relative to the size of the national
banking sector, whose liabilities were equal to a moderate
estimated 28% of GDP at end-2008 and consisted mainly of deposits
of domestic customers and placements by government bodies.  In
particular, Fitch understands that sovereign foreign currency
reserves of around US$9.5bn at end-2008 exceeded external banking
liabilities by 8x-10x, with a large majority of banks' foreign
borrowings already guaranteed by the government and/or obtained
from international financial institutions.  Further movements in
the IDRs of AB, Asaka and UPSB will likely be driven by changes in
Fitch's assessment of Uzbekistan's sovereign credit profile, and
Fitch's view of the ability and propensity of the authorities to
support the banks in case of need.

The 'D/E' Individual rating of AB reflects the bank's size, which
is small by international standards, its high-risk profile given
its single-sector concentration (loans to agricultural companies
represented 73% of end-5M09 loans), weak profitability and the
challenging operating environment.  At the same time, the rating
considers the bank's currently manageable loan impairment levels,
and limited refinancing and market risk.  Upside for the bank's
Individual rating is currently limited, but AB's stand-alone
credit profile could benefit from growth of franchise, a notable
improvement in profitability and improvements in the Uzbek
operating environment.  The planned further equity increase in
H209, following that in Q109, will also provide at least short-
term support to AB's currently modest capitalization.  The major
risk to which AB is exposed is a failure in any year of the cotton
or grain crop, which could result in large credit losses and,
possibly, the need for external support, thus causing a downgrade
of the Individual rating.

Agrobank was established in 1995 as Pakhta Bank and was
reorganized and renamed in Q109.  The reorganization involved the
subsequent takeover of the business of the smaller Uzbek bank,
Gallabank, which specialized in servicing grain producers.  At
end-Q109, AB was the fourth-largest bank in the country, holding
around 9% of sector assets.  AB plays a central role in delivering
agricultural credit, mainly to cotton and grain producers, in
Uzbekistan.

The 'D/E' Individual rating of Asaka considers the bank's rapid
loan growth (up 27% in 2008, with a similar trend in 5M09),
concentrated balance sheet (both by segment and counterparty), the
weak quality of directed lending assets (rescheduled loans and
those under litigation accounted for a significant, albeit
reduced, 13% of end-2008 loans, with a further 5.7% of loans
rescheduled in 5M09), modest profitability and the challenging
operating environment.  The rating also considers the bank's
adequate capitalization (Basel I tier 1 and total capital ratios
were 28.8% and 31.7%, respectively, at end-2008), which has been
further supported by the new large capital injection in Q109,
planned to be followed by another in H209.  Upside potential for
the bank's Individual rating is currently limited, but Asaka's
stand-alone credit profile could benefit from franchise
diversification, a better track record on asset quality, a notable
improvement in profitability and a stronger operating environment.
Downward pressure could result from further deterioration in loan
quality, combined with significant reductions of capital ratios.

Asaka was set up in 1995 (by a decree of the Cabinet of Ministers
of Uzbekistan), initially to service the needs of the automobile
industry.  Since then, the bank's client base has diversified to
include companies from the textile, trade, manufacturing,
pharmaceuticals and construction sectors.  As at end-Q109, Asaka
was the third-largest bank in Uzbekistan, holding nearly 12% of
sector assets.  The bank serves clients through a broad branch
network which covers all 13 regional centres of Uzbekistan.

The 'D/E' Individual rating of UPSB reflects its small size, high
concentrations in the loan portfolio and customer funding, and
certain weaknesses in the operating environment.  At the same
time, the rating considers UPSB's currently reasonable capital
adequacy (Basel I total capital ratio was 16.9% at end-2008).
UPSB's asset quality has been manageable to date, with the largest
problem exposure serviced by the state under its guarantee
obligation.  Upside potential for the bank's Individual rating is
limited, but UPSB's stand-alone credit profile could benefit from
diversification of the bank's franchise and customer base and
improvement in asset quality.  Significant credit losses or a
marked deterioration in UPSB's liquidity would exert downward
pressure on the Individual rating.

UPSB was established on the basis of a branch of the Soviet
Industry and Construction Bank.  The bank's main function is to
contribute to the development of local industries by granting
long-term loans for capital investment purposes.  UPSB's main
clientele includes strategic national corporations from the
energy, telecommunication, chemical and transportation industries.
At end-Q109, UPSB was the second-largest bank in Uzbekistan, with
a market share of 12%.

The Individual rating reflects the standalone strength of a bank
while the Support rating reflects the probability of support from
a majority shareholder and/or the government.

Rating actions are:

OJSC Agrobank:

  -- Long-term IDR: upgraded to 'B' from 'B-'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: upgraded to '4' from '5'
  -- Support Rating Floor: revised to 'B' from 'B-'

Asaka Bank:

  -- Long-term IDR: affirmed at 'B'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Uzpromstoybank:

  -- Long-term IDR: upgraded to 'B' from 'B-'; Outlook Stable
  -- Short-term IDR: affirmed at 'B'
  -- Individual rating: affirmed at 'D/E'
  -- Support rating: upgraded to '4' from '5'
  -- Support Rating Floor: revised to 'B' from 'B-'


* Fitch Says European Building Sector Outlook Still Negative
------------------------------------------------------------
In advance of its forthcoming mid-year EMEA Industrials sector
outlook update, Fitch Ratings said the credit outlook for the
European building materials, construction and property sectors
remains negative, as companies continue to be challenged by the
ongoing impact of the global economic downturn and constrained
credit markets.

While the majority of European building materials companies
announced in Q109 measures to preserve cash flow and strengthen
their balance sheets, as reflected in rating actions during H109,
these have been insufficient to defend credit profiles.  Rating
actions have included the downgrade in March of HeidelbergCement
AG ('B'/'B'/Negative) and Lafarge SA ('BBB-'/'F3'/Negative); and
the downgrade in April of Holcim Ltd ('BBB'/'F2'/Negative).

"Fitch believes the deeper-than-anticipated global recession will
translate into persistent challenging trading conditions in the
building materials industry in mature markets while,
simultaneously, the industry faces diminished prospects in
emerging markets as economic growth also declines," said
Elisabetta Zorzi, Senior Director in Fitch's Industrials group.
"Furthermore, issuers' cash flows from operations will likely be
lower in the next 24 months than previously forecast by Fitch,
resulting in a slower pace of deleveraging that will mean more
limited headroom under current credit profiles, particularly for
leveraged credits," she added.

Prospects for a meaningful and sustained recovery for western
European construction and homebuilding companies remain uncertain,
and Fitch continues to forecast a peak-to-trough fall in house
prices of approximately 30%.  The agency's greatest concern
remains cash generation, given that debt levels in the sector
remain high and many companies are highly leveraged.

"While homebuilders have generally solved their most pressing
short-term problems by amending covenants and extending debt
maturities, such as Taylor Wimpey plc (rated 'B-'/RWP), there is a
risk that the sector's problems have merely been postponed, if
companies are not sufficiently cash generative in the next two to
four years to repay or refinance extended debt maturities", says
Ewan Macaulay, Associate Director in Fitch Industrials group.

Compared to homebuilders, Europe's large diversified construction
majors -- including Bouygues SA ('BBB+'/Negative), Obrascon Huarte
Lain SA (OHL, 'BB+'/RWN) and Vinci S.A. ('BBB+'/Stable) -- have
exhibited greater resilience to date, albeit with increasing
negative pressures.  Fitch is forecasting an average 5%-10% annual
fall in construction revenues until 2011 and notes that a slowdown
in new orders could also adversely affect working capital
(instalment payments on new contracts can often be used to fund
the completion of older projects).  These concerns formed part of
the rationale for downgrading OHL ratings to 'BB+' from 'BBB-' and
placing them on RWN in March and placing Bouygues' ratings on
Negative Outlook in April.

Due to falling valuations and rents, and despite the fact that
Fitch rated issuers generally have good liquidity profiles (albeit
achieved by extending credit facilities at higher pricing), the
rating outlook for European real estate companies is negative.
The majority of UK and Continental European REITs are on Negative
Outlook or on Rating Watch Negative.

"While UK property valuation decline is slowing and should
stabilize by July 2009, rents are generally predicted to fall by
up to 15% in 2009.  As a result, the UK rental market is becoming
more difficult, with growing evidence of tenant defaults and rent
arrears which could impact interest serviceability and hence
ratings," said Julian Crush, Senior Director in Fitch's Industrial
group.


* S&P Takes CreditWatch Actions on 141 European CDO Tranches
------------------------------------------------------------
After running its month-end SROC (synthetic rated
overcollateralization) figures, Standard & Poor's Ratings Services
took CreditWatch actions on 141 European synthetic collateralized
debt obligation tranches.

Specifically, S&P:

1. Placed ratings on 136 tranches on CreditWatch negative;

2. Affirmed and removed from CreditWatch negative ratings on four
   tranches; and

3. Removed from CreditWatch negative and placed on CreditWatch
   positive one tranche.

Of the 136 tranches placed on CreditWatch negative:

1. 28 reference U.S. residential mortgage-backed securities (RMBS)
   and U.S. CDOs that are exposed to U.S. RMBS, which have
   experienced recent negative rating actions.

2. 108 have experienced corporate downgrades in their portfolios.

This table provides a summary of the CreditWatch actions S&P has
taken on European synthetic CDO tranches as well as key corporate
downgrades since January 21, 2009.

                       CreditWatch Summary

          Watch Neg  Watch Pos
          (no. of    (no. of    Key corporate
          tranches)  tranches)  downgrades*
          ---------  ---------  -------------
Feb—09   315          6        International Lease Finance Corp.
                                (A-/Watch Dev to BBB+/Watch Dev)
                                Jan. 21, 2009
                                Thomson S.A.
                                (B/Watch Neg to CC/Negative)
                                Jan. 29, 2009
Mar-09    98          34       MBIA Inc.
                                (A-/Negative to BB+/Negative)
                                Feb. 18, 2009
                                MBIA Insurance Corp.
                                (AA/Negative to BBB+/Negative)
                                Feb. 18, 2009
Apr-09   454           0       MGIC Investment Corp.
                                (BB+/Watch Neg to CCC/Negative)
                                March 13, 2009
                                MGM Mirage
                                (B/Watch Neg to CCC/Negative)
                                March 19, 2009
May-09   258          10       PMI Group Inc.
                                (BBB-/Watch Neg to CCC/Watch Dev)
                                April 8, 2009
                                Radian Group Inc.
                                (BB/Watch Neg to CCC/Stable)
                                April 8, 2009
Jun-09    72           2       Visteon Corp.
                                (CCC/Negative to D)
                                May 28, 2009
                                General Motors Corp.
                                (CC/Negative to D)
                                June 1, 2009
Jul-09   136           1       Lear Corp.
                                (CCC+/Negative to D)
                                June 2, 2009
                                CIT Group, Inc.
                                (BBB-/Negative/A-3 to
                                BB-/Watch Neg/B)
                                June 12, 2009

* Those corporate names that have experienced a significant notch
  downgrade or upgrade as well as being widely referenced within
  European Synthetic CDOs.

The SROC levels for the ratings placed on CreditWatch negative
fell below 100% during the June month-end run.  S&P will publish
these SROC figures in the SROC report covering June 2009, which is
imminent.  The Global SROC Report provides SROC and other
performance metrics on over 3,500 individual CDO tranches.

The current ratings are based on S&P's criteria for rating
synthetic CDOs.  As recently announced, however, these criteria
are under review.  As highlighted in this notice, S&P has
solicited feedback from market participants regarding proposed
changes to S&P's collateralized loan obligation and CDO criteria.
S&P is evaluating the market feedback, which may result in changes
to the criteria.  Any such criteria changes, as well as other
credit factors, may have an impact on S&P's ratings on the notes
affected by the rating actions.

                            *********

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 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 * * *