/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/091109.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, November 9, 2009, Vol. 10, No. 221 Headlines A U S T R I A ELEKTRONA ELEKTROINSTALLATION: Claims Filing Deadline is Nov. 30 PHARMACON-FORSCHUNG: Claims Filing Deadline is November 26 SOFTINVENT GMBH: Claims Filing Deadline is December 1 SRD TRANSPORT: Claims Filing Deadline is December 1 C Z E C H R E P U B L I C * CZECH REPUBLIC: Bankruptcy Filings Up 71% Year on Year E S T O N I A ALTA FOODS: Court Decides Not to Start Bankruptcy Process F R A N C E CMA CGM: Seeks US$400 Mln Additional Credit Line Amid Debt Talks G E R M A N Y ARCANDOR AG: Otto Buys Quelle's Russian Biz, Trademark Rights ESCADA AG: Megha Mittal Agrees to Buy Main Assets GENERAL MOTORS: Sends Execs to Germany to Fine-Tune Opel Plan STABILITY CMBS: Fitch Junks Rating on Class E Notes From 'BB' WINDERMERE X: Fitch Junks Ratings on Two Classes of Notes G R E E C E WIND HELLAS: Board Backs Owner's Debt Restructuring Plan H U N G A R Y INVITEL HOLDINGS: S&P Raises Corporate Credit Rating to 'CCC+' I R E L A N D ALLIED IRISH: Fitch Affirms Individual Rating at 'D/E' ANGLO IRISH: Fitch Affirms Individual Rating at 'E' EBS BUILDING: Fitch Affirms Individual Rating at 'E' IRISH NATIONWIDE: Fitch Affirms Individual Rating at 'E' O'BRIENS SANDWICH: Irish Unit Bought Out Liquidation by Impless SMART TELECOM: Digiweb to Acquire Business Out of Examinership I T A L Y CAPITAL MORTGAGE: Fitch Junks Rating on Class C Notes From 'BBB-' K A Z A K H S T A N A TRADE: Creditors Must File Claims by November 18 ASIAN EXPRESS: Creditors Must File Claims by November 18 ELENA LLP: Creditors Must File Claims by November 18 FATEX LTD: Creditors Must File Claims by November 18 MIKAI EXPORT: Creditors Must File Claims by November 18 NUR TECH: Creditors Must File Claims by November 18 OTANDASTAR PHARMATSIYA: Creditors Must File Claims by November 18 STROY PROM: Creditors Must File Claims by November 18 TARNAS LLP: Creditors Must File Claims by November 18 TECHNO JER: Creditors Must File Claims by November 18 K Y R G Y Z S T A N AUTO IMPORT: Creditors Must File Claims by December 2 PROM TORG: Creditors Must File Claims by December 2 N E T H E R L A N D S EUROLOAN CLO: Moody's Downgrades Rating on Class D Notes to 'Ca' N O R W A Y TRICO SUPPLY: S&P Raises Corporate Credit Rating to 'CCC+' R U S S I A COMSTAR UNITED: S&P Affirms Corporate Credit Rating at 'BB' EKSPO-STROY: Creditors Must File Claims by November 16 LES-SERVIS: Creditors Must File Claims by November 16 MOBILE TELESYSTEMS: S&P Affirms Corporate Credit Rating at 'BB' MOZDOKSKIY CHEESE: Creditors Must File Claims by November 16 NKNK FINANCE: Fitch Assigns 'B' Rating on Loan Participation Notes PROM-ZHIL: Creditors Must File Claims by November 16 RUSSIAN CONSTRUCTION: Creditors Must File Claims by November 16 SIBIRSKAYA IRON: Creditors Must File Claims by November 16 SISTEMA JSFC: S&P Affirms Corporate Credit Rating at 'BB' STROY-MASH: Creditors Must File Claims by November 17 SVIRSKAYA TRANSPORT: Creditors Must File Claims by November 16 TEKH-STROY: Creditors Must File Claims by November 16 ZAP-SIB: Creditors Must File Claims by November 16 VES-STROY: Astrakhanskaya Bankruptcy Hearing Set November 17 S P A I N GC FTGENCAT: Fitch Downgrades Rating on Class D Notes to 'C' GC FTPYME: Fitch Downgrades Ratings on Class C Notes to 'CCC' SABADELL 1: Fitch Downgrades Rating on Class B Notes to 'BB' SABADELL 2: Fitch Downgrades Rating on Class 3 SA Notes to 'BB' S W I T Z E R L A N D ATF GMBH: Claims Filing Deadline is November 20 CU ELECTRONICS: Claims Filing Deadline is November 23 FLEXSYS AG: Claims Filing Deadline is November 20 GASTEST AG: Claims Filing Deadline is November 20 MOTIVATIONSSYSTEME: Claims Filing Deadline is November 23 MPI MEIER: Claims Filing Deadline is November 20 PLS BETEILIGUNG: Claims Filing Deadline is November 20 RESTAURANT ROESSLI: Claims Filing Deadline is November 20 TICOR INTERNATIONAL: Claims Filing Deadline is November 23 VILAS CREATIONS: Claims Filing Deadline is November 20 T U R K E Y BANKPOZITIF KREDI: Fitch Affirms Individual Rating at 'D' TURKIYE KALKINMA: Fitch Affirms Individual Rating at 'D' TURKLAND BANK: Fitch Affirms Individual Rating at 'D' U N I T E D K I N G D O M BRANTON BRIDGE: Sold to Calibre; More Than 30 Jobs Saved DEVON CIDER: Sold to Aston Manor; 50 Jobs Saved DONCASTERS GROUP: DIC Injects GBP53 Mln Cash to Avert Debt Breach NIPSON DIGITAL: May Seek Administration if Repayment Talks Fail RBS CAPITAL: S&P Corrects Error on Subordinated Guarantor of Notes ROYAL BANK: Fitch Puts 'E' Individual Rating on Positive Watch U Z B E K I S T A N ALOKABANK: Moody's Maintains Review for Possible Downgrade IPOTEKA BANK: Moody's Maintains Review for Possible Downgrade NATIONAL BANK: Moody's Maintains Review for Possible Downgrade X X X X X X X X * BOND PRICING: For the Week November 2 to November 6, 2009 ********* ============= A U S T R I A ============= ELEKTRONA ELEKTROINSTALLATION: Claims Filing Deadline is Nov. 30 ---------------------------------------------------------------- Creditors of Elektrona Elektroinstallation GmbH have until November 30, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 9, 2009 at 10:10 a.m. For further information, contact the company's administrator: Mag. Mario Kapp Kaerntnerstr. 525-527 8054 Graz-Seiersberg Austria Tel: 0316/22 59 55 Fax: 0316/28 20 13 E-mail: kapp@kapp.at PHARMACON-FORSCHUNG: Claims Filing Deadline is November 26 ---------------------------------------------------------- Creditors of Pharmacon-Forschung und Beratung GmbH have until November 26, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 10, 2009 at 11:30 a.m. For further information, contact the company's administrator: Dr. Johannes Jaksch Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 7134433 Fax: 7131033 E-mail: kanzlei@jsr.at SOFTINVENT GMBH: Claims Filing Deadline is December 1 ----------------------------------------------------- Creditors of Softinvent GmbH have until December 1, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 15, 2009 at 12:30 p.m. For further information, contact the company's administrator: Mag. Michael Ludwig Lang Schuettelstrasse 55 1020 Vienna Austria Tel: 72 577 Fax: 72 577 577 E-mail: michael.lang@blw-legal.com SRD TRANSPORT: Claims Filing Deadline is December 1 --------------------------------------------------- Creditors of Srd Transport GmbH have until December 1, 2009, to file their proofs of claim. A court hearing for examination of the claims has been scheduled for December 15, 2009 at 12:45 p.m. For further information, contact the company's administrator: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna Austria Tel: 877 33 30 Fax: 877 33 30 33 E-mail: ra-stampfer@utanet.at =========================== C Z E C H R E P U B L I C =========================== * CZECH REPUBLIC: Bankruptcy Filings Up 71% Year on Year -------------------------------------------------------- The Prague Post, citing data released by research firm Creditreform Nov. 2, reports that Czech bankruptcy filings rose 71% year on year in the January to October period, with figures expected to rise to 9,000 by the end of 2009. According to the report, a total of 7,458 insolvencies were filed between January and Oct. 31, of which 4,290 were firms and the rest were private individuals. ============= E S T O N I A ============= ALTA FOODS: Court Decides Not to Start Bankruptcy Process --------------------------------------------------------- Marge Tubalkain-Trellmarge at Aripaev reports that Harju County on Nov. 4 decided not to start a bankruptcy process initiated by Oliver Kruuda's AS Rubla against Alta Foods. According to the report, the court said that creditor's claim against the debtor isn't clear enough and the dispute must be solved in another manner. The report recalls in August Rubla bought Alta Foods' bonds for EEK3.1 million. Since the interest on bonds was unpaid then Rubla claimed redemption of bonds, but Alta Foods didn't do that, the report recounts. Rubla has 15 days to challenge the ruling in Tallinn Administrative Court, according to the report. =========== F R A N C E =========== CMA CGM: Seeks US$400 Mln Additional Credit Line Amid Debt Talks ---------------------------------------------------------------- Laurence Frost at Bloomberg News reports that CMA CGM SA is seeking to borrow an additional US$400 million to fund operations as the company restructures its existing US$5.6 billion debt. According to Bloomberg, two people with knowledge of the talks said the company is negotiating the additional credit line alongside debt restructuring and governance changes demanded by lenders including BNP Paribas SA. As reported by the Troubled Company Reporter-Europe on Nov. 6, 2009, Bloomberg News said CMA Chief Executive Officer Jacques Saade agreed in principle to change the company's governance and shareholder structure. Bloomberg, citing French weekly business magazine Challenges, disclosed the company faces an important repayment deadline Nov. 20. On Nov. 2, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported creditors told the company to replace Mr. Saade before they restructure its debt. The company would default on payments if the banks invoked its breach of covenants on US$4 billion of the debt, according to Bloomberg. Headquartered in Marseilles, France, CMA CGM S.A. -- http://www.cma-cgm.com/-- ships freight PDQ. The marine transportation company is one of the world's leading container carriers. Through subsidiaries it operates a fleet of about 370 vessels that serve more than 400 ports around the globe, and it maintains a network of about 650 facilities in about 150 countries. In addition to hauling containers by sea, CMA CGM provides logistics services, arranging the transportation of containerized freight by river, road, and rail. The company's tourism division arranges cruises and other travel services. Chairman Jacques Saade founded the company in 1978. ============= G E R M A N Y ============= ARCANDOR AG: Otto Buys Quelle's Russian Biz, Trademark Rights ------------------------------------------------------------- Eva Kuehnen at Reuters reports that Otto on Thursday said it has acquired the Russian business and trademark rights of Arcandor AG's Quelle unit. Reuters relates a source close to the negotiations said Otto paid a double-digit million euro sum for the deal. The German mail- order company also bought the trademark rights for the Quelle brand and Quelle labels such as Privileg in Russia, Germany and other central and eastern European countries. According to Reuters, Otto said it was not interested in any other parts of Quelle, for which talks with potential investors are continuing. Quelle is shutting down after more than 80 years in business, having failed to find a new investor, Reuters notes. About Arcandor AG Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/-- formerly KarstadtQuelle AG, is a tourism and retail group. Its three core business areas are tourism, mail order services and department store retail. The Company's business areas are covered by its three operating segments: Thomas Cook, Primondo and Karstadt. Thomas Cook Group plc is a tour operator with operations in Europe and North America, set up as a result of a merger between MyTravel and Thomas Cook AG. It also operates the e-commerce platform, Thomas Cook, supporting travel services. Primondo has a portfolio of European universal and specialty mail order companies, including the core brand Quelle. Karstadt operates a range of department stores, such as cosmopolitan stores, including KaDeWe (Kaufhaus des Westens), Karstadt Oberpollinger and Alsterhaus; Karstadt brand department stores; Karstadt sports department stores, offering sports goods in a variety of retail outlets, and a portal, karstadt.de that offers online shopping, among others. On Sept. 2, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported that a local court in Essen formally opened insolvency proceedings for the Arcandor on Sept. 1. Bloomberg disclosed the proceedings started for the Arcandor holding company and for 14 units, including the Karstadt department-store chain and Primondo mail-order division. As reported in the Troubled Company Reporter-Europe, on June 9, 2009, Arcandor filed for bankruptcy protection after the German government turned down its request for loan guarantees. On June 8, 2009, the government rejected two applications for help by the company, which employs 43,000 people. The retailer sought loan guarantees of EUR650 million (US$904 million) from Germany's Economy Fund program. It also sought a further EUR437 million from a state-owned bank. ESCADA AG: Megha Mittal Agrees to Buy Main Assets ------------------------------------------------- Patrick Donahue at Bloomberg News reports that Megha Mittal, daughter-in-law of billionaire Lakshmi Mittal, agreed to buy the main assets of Escada AG for an undisclosed sum. According to Bloomberg, the company said in an e-mailed statement the Mittal family trust will acquire Munich-based Escada's main business, brand rights, production facilities and distribution network. Assets guaranteed to bondholders are excluded, Bloomberg notes. As reported by the Troubled Company Reporter-Europe, Escada said that insolvency proceedings opened in Munich on Nov. 2. The company filed an insolvency petition in Munich, Germany, on August 13, 2009. The competent Municipal Court of Munich appointed Dr. jur. Christian Gerloff as preliminary insolvency administrator. About ESCADA AG The ESCADA Group -- http://www.escada.com/-- is an international fashion group for women's apparel and accessories, which is active on the international luxury goods market. It has pursued a course of steady expansion since its founding in 1976 by Margaretha and Wolfgang Ley and today has 182 own shops and 225 franchise shops/corners in more than 60 countries. As of August 10, 2009, the Escada Group operated 176 owned stores and so-called shop in shops, of which 26 owned stores are located in the United States and operated by Escada (USA) Inc. and 2 stores are planned to be opened in the United States before year end. Escada Group products are also sold in 163 stores worldwide which are operated by franchisees. Escada Group had total assets of EUR322.2 million against total liabilities of 338.9 million as of April 30, 2009. Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008). Judge Stuart M. Bernstein handles the case. O'Melveny & Myers LLP has been tapped as bankruptcy counsel. Kurtzman Carson Consultants serves as claims and notice agent. Escada US listed US$50 million to US$100 million in assets and US$100 million to US$500 million in debts in its petition. Bankruptcy Creditors' Service, Inc., publishes Escada USA Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Escada USA, and the insolvency proceedings of ESCADA AG and its units. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Sends Execs to Germany to Fine-Tune Opel Plan ------------------------------------------------------------- The Wall Street Journal's John D. Stoll and Vanessa Fuhrmans report that company officials said a team of General Motors Co. executives will arrive in Germany on Monday to fine-tune a restructuring plan for Adam Opel GmbH and search out a new leader for the European unit. On Friday, GM said Carl-Peter Forster, GM group vice president and president, Opel Europe, will be leaving his role as head of European operations and will advise the company during the transition to find a new CEO. With the departure of Mr. Forster, GM said it will initiate an immediate external search for a new CEO for Opel Europe and will work with Opel leadership, in consultation with representatives of the European Employees Forum, in moving forward with a plan that will build a strong and enduring future for the Opel/Vauxhall brands. "The Opel brand has made tremendous progress under Carl-Peter's tenure and leadership over the past several years," said GM President and CEO Fritz Henderson. "We thank him for his significant accomplishments and wish him only the best in the future. In the meantime, we're confident that the key personnel leading Opel will stay focused on running the business during this time of transition. We expect to finalize our proposals for establishing Opel/Vauxhall's future next week and will be engaging all stakeholders to see how we can best work together in achieving our mutual goals. We will update on our progress as soon as is possible." Mr. Henderson added that no other management changes to the Opel Europe organization are being considered at this time, and that all key management roles remain while the search for a CEO to lead Opel Europe commences. "The past few years building the Opel brand has been a tremendous personal opportunity," said Mr. Forster. "We've seen great strides in design, quality and technology and the launch of truly world-class products. It's been an honor to be part of the history of Opel, and I wish all the people with the organization only the best in what I'm certain will be a great future." The Journal says Mr. Forster was an opponent of the board's decision to keep Opel. He will be replaced for now by GM marketing chief Robert A. Lutz, who will be head of the Opel supervisory board but not GM Europe CEO, the Journal adds. According to the Journal, Mr. Henderson and key executives -- including GM international chief Nick Reilly and current Opel chief Hans Demant -- will take a fresh look at Opel's operations and decide how many of the division's 55,000 workers and 10 plants in Europe need to be eliminated to make the business viable. Separately, GM plans to move Chief Financial Officer Ray Young to international headquarters in Shanghai, pending the hiring of a new CFO, according to people familiar with the move, the Journal reports. GM officials have met seven candidates for the CFO job, and narrowed the field to three prospects, according to these people. Last week, GM cancelled a deal to sell its Opel//Vauxhall operations to the partnership of Canadian autoparts maker Magna, Russian car maker OAO GAZ and Russian state-controlled OAO Sberbank, instead deciding to restructure the unit. "GM will soon present its restructuring plan to Germany and other governments and hopes for its favorable consideration," said Mr. Henderson. "We understand the complexity and length of this issue has been draining for all involved. However, from the outset, our goal has been to secure the best long term solution for our customers, employee, suppliers, and dealers which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall's long-term future." On a preliminary basis, the GM plan entails total restructuring expenses of about EUR3 billion, significantly lower than all bids submitted as part of the investor solicitation. GM will work with all European labor unions to develop a plan for meaningful contributions to Opel's restructuring. While Opel continues to outperform against its viability plan assumptions and immediate liquidity is stable, time is of the essence. GM is facing a November 30 expiration on EUR1.5 billion in bridge loans from Germany. According to the Journal, GM hadn't received word from the German government Tuesday evening on whether it will continue extending the loans or request they be repaid, said a person familiar with the matter. "While strained, the business environment in Europe has improved." Mr. Henderson said in a news statement. "At the same time, GM's overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured. We are grateful for the hard work of the German and other EU governments in navigating this difficult economic period. We're also appreciative of the effort put forward by Magna and its partners in Russia in trying to reach an equitable agreement." Mr. Henderson added that GM also hopes to build on its already significant business in Russia and to resume work directly with GAZ to contribute to both the modernization of its operations and the joint development of the Russian vehicle market on a mutually attractive basis. More details on the next steps in the restructuring will be provided as the plans and developments warrant. The Journal notes that Mr. Henderson's management team had worked out a deal last Summer to sell 55% of Opel to the partnership of Canadian autoparts maker Magna, Russian car maker OAO GAZ and Russian state-controlled OAO Sberbank. The German government committed to finance the plan and help fund Opel with EUR4.5 billion in aid. Under the deal, the German government would kick in billions of dollars in financing to close the sale and initiate a restructuring. Magna had committed to spend $500 million. General Motors -- -- http://www.gm.com/-- one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors acquired operations from General Motors Corporation on July 10, 2009. STABILITY CMBS: Fitch Junks Rating on Class E Notes From 'BB' ------------------------------------------------------------- Fitch Ratings has revised the Outlooks on STABILITY CMBS 2007-1 GmbH's senior swap and Class A+ notes to Negative from Stable. At the same time, Fitch has downgraded the Class A to E notes and assigned Negative Outlooks: -- EUR710,287,472 senior swap affirmed at 'AAA'; Outlook revised to Negative from Stable -- EUR488,654 Class A+ (DE000A0N30Z7) affirmed at 'AAA'; Outlook revised to Negative from Stable -- EUR31,800,000 Class A (DE000A0N3005) downgraded to 'A' from 'AAA'; Outlook Negative -- EUR46,400,000 Class B (DE000A0N3013) downgraded to 'BBB' from 'AA'; Outlook Negative -- EUR30,500,000 Class C (DE000A0N3021) downgraded to 'BB' from 'A'; Outlook Negative -- EUR30,400,000 Class D (DE000A0N3039) downgrade to 'B' from 'BBB'; Outlook Negative -- EUR28,200,000 Class E (DE000A0N3047) downgraded to 'CC' from 'BB'; assigned Recovery Rating 'RR6' -- EUR14,600,000 Class F (DE000A0N3054): not rated STABILITY is a synthetic securitization of commercial mortgage loans originated by IKB Deutsche Industriebank AG (IKB, rated 'BBB-'/'F3'/ Watch Negative). Although at present, only two loans, representing 1.4% of the current pool balance, are in arrears, Fitch is of the view that rising arrears levels and further loan defaults may occur in the near- to medium-term. This is because of the weak economic environment, deteriorating conditions in the commercial real estate markets and the difficulties borrowers currently face in obtaining financing for commercial real estate assets. Of the largest four exposures -- which account for 29% of the reference pool balance -- three are syndicated portions of very large loans totalling EUR2.3 billion. Despite the loans' strong tenant covenants and long unexpired lease terms, the imminence of loan maturity (2010-2013) exposes investors to risks associated with refinancing in prevailing difficult conditions, particularly given the sheer size of these loans. A large share of the securitized loans is granted to SME-like borrowers and private individuals, and these loans do not benefit from structural features such as DSCR and LTV covenants commonly found in CMBS transactions. Furthermore, only limited data and information is available with regards to the underlying real estate collateral of these smaller loans. IKB has publicly stated that it intends to terminate its commercial real estate lending activities. In the agency's view, there is a risk that IKB's withdrawal from this business segment may negatively impact its loan servicing capabilities in the future due to potential reductions in resources available for IT systems, staff training and headcount within its servicing unit. As per the October 2009 investor report, STABILITY provided credit protection for a portfolio of 216 commercial mortgage loans to 113 debtor groups. While 52 large claims granted to SPV borrowers represent approximately 51% of the current pool balance, the remainder consists of non-SPV loans with borrower recourse. Fitch analysed the largest exposures with its European CMBS Surveillance methodology, while the remaining loans were analyzed using a combined approach of the agency's CMBS and CDO methodologies. Fitch will continue to monitor the performance of the transaction closely. WINDERMERE X: Fitch Junks Ratings on Two Classes of Notes -------------------------------------------------------- Fitch Ratings has downgraded all classes of Windermere X CMBS Limited, except for class X: -- EUR1,039.85 million class A due October 2016 (XS0293895271) downgraded to 'A' from 'AAA'; Outlook Negative -- EUR5,000 class X due October 2016 (XS0293896675) affirmed at 'AAA'; Outlook Stable -- EUR53.23 million class B due October 2016 (XS0293896915) downgraded to 'A-' from 'AA+'; Outlook Negative -- EUR60.84 million class C due October 2016 (XS0293895271) downgraded to 'BBB' from 'AA'; Outlook Negative -- EUR107.32 million class D due October 2016 (XS0293898457) downgraded to 'BB' from 'A'; Outlook Negative -- EUR66.54 million class E due October 2016 (XS0293898887) downgraded to 'CCC' from 'BBB'; assigned Recovery Rating 'RR3' -- EUR13.79 million class F due October 2016 (XS0293899265) downgraded to 'CCC' from 'BB'; assigned 'RR6' Windermere X CMBS Limited is a securitization of 15 commercial mortgage loans secured on properties located in Germany, France, Italy and Switzerland. Fitch's criteria for European CMBS surveillance and criteria for European multifamily loans were used to analyze the quality of these loans. The downgrade reflects an increased risk of falling property income as a result of tenant departures or defaults. At the same time, there has been a general weakening in European property investment markets, particularly for the secondary properties against which most of the debt is secured. Fitch estimates the portfolio's current weighted average loan-to-value ratio to be 97%, as compared to the reported WA LTV of 70.8%, implying a WA market value decline of 26% since last valuation. Two of the loans, Woolworth Boenen and Built, have experienced a payment default during the last year, while a further two, Falcon Crest and Grazer Damm, have had default notices served. Although in all these cases the borrowers have taken remedial action, there are concerns about the quality of some of the loans in this transaction. Fitch notes that the sole customer of the only tenant for the Woolworth Boenen loan is insolvent. In addition, there is uncertainty over the cash flow stability of the multifamily properties underlying the Falcon Crest loan. The borrowers of two loans, Thunderbird and Firebird, having exercised documented options to extend maturity from October 2008 until October 2010, have now requested further ad hoc extensions until April 2013: the servicer has agreed to such extensions in principle, although certain conditions have yet to be met. While Fitch considers such requests reflective of borrower stress, by modifying and extending these loans the servicer may have an opportunity to ensure that the increased surplus cash flow resulting from (currently) low interest rates is directed towards loan and note amortization, and not to the class X note holder. At closing the issuer entered into interest rate basis- and fixed/ floating swaps as well as a currency swap with subsidiaries of Lehman Brothers Inc. (Lehman). Certain borrowers with floating- rate loans also entered into interest rate hedging agreements with such entities. Since the collapse of Lehman, replacement issuer level swaps have now been entered into with Royal Bank of Scotland plc ('AA-'/ 'F1+'/Stable) on similar terms and at no extra cost to the noteholders. Fitch understands that borrowers with affected hedging agreements are also in the process of finding suitable replacement counterparties. Although currency hedging in respect of the three loans denominated in Swiss francs has also been replaced, any loss to noteholders arising from these loans would be compounded by a strengthening of the franc against the euro versus the contracted exchange rate. Recent developments on the Windermere XII FCC transaction have created uncertainty regarding the risks associated with the use of non-FCT borrower special-purpose vehicles in France. Fitch will continue to monitor this situation to determine the extent to which these risks may be relevant to its analysis of any French CMBS involving such SPVs. Fitch will continue to monitor the performance of the transaction. =========== G R E E C E =========== WIND HELLAS: Board Backs Owner's Debt Restructuring Plan -------------------------------------------------------- Anousha Sakoui at The Financial Times reports the board of Wind Hellas Telecommunications S.A. backed a debt restructuring plan put forward by the company's owner, Weather Investments, a vehicle controlled by Egyptian entrepreneur Naguib Sawiris. The deal, the FT says, has secured support from more than half its more senior ranking creditors. According to the FT, it is expected to leave its shareholders in control of the business but wipe out around EUR1.5 billion (US$2.2 billion) of more subordinated debt claims. The FT relates Hellas II, the funding vehicle of Wind Hellas, said that after receiving six offers for the company its board decided to proceed with a proposal from its current owner that would inject EUR124.6 million in exchange for keeping control. Under that plan the claims of Wind Hellas' revolving credit facility, senior secured and unsecured notes will be unaffected, the FT discloses. The deal is set to be implemented under English law in what is thought to be the UK�s biggest ever prepackaged administration, the FT states. The FT notes Wind Hellas said Thursday the administration process will have no impact on the operation of the company or trade creditors. The FT recalls Wind Hellas put itself up for sale after losing market share and hitting trouble servicing its EUR3.2 billion of net debt. Headquartered in Athens, WIND Hellas Telecommunications S.A. -- http://www.wind.com.gr/-- offers TIM-branded (formerly Telestet) wireless telecom services to about 2.3 million consumer and small- business customers throughout Greece. From its digital GSM network, the firm offers conference calling, mobile e-mail, fax, and data transmission. * * * As reported in the Troubled Company Reporter-Europe on Sept. 8, 2009, Standard & Poor's Ratings Services said that it lowered its long-term corporate credit ratings on Greek mobile telecommunications operator WIND Hellas Telecommunications S.A. and related entities to 'CC' from 'CCC' on the group's weak second-quarter results and announcement that it was in talks with its shareholders about a potential restructuring of the group's capital structure. S&P said the outlook is negative. ============= H U N G A R Y ============= INVITEL HOLDINGS: S&P Raises Corporate Credit Rating to 'CCC+' -------------------------------------------------------------- Standard & Poor's Ratings Services said it raised its long-term corporate credit rating on Hungary-based fixed-line telecommunications operator Invitel Holdings A/S and related entities Magyar Telecom B.V. and HTCC Holdco I B.V. to 'CCC+' from 'SD', reflecting S&P's review of the group's capital structure and liquidity profile after completing three debt exchange offers. The outlook is stable. At the same time, S&P raised the issue ratings on Magyar Telecom B.V.'s EUR142 million 10.75% notes due 2012 and EUR200 million floating-rate notes due 2013, and the issue rating on HTCC Holdco 1 B.V.'s EUR125 million junior subordinated payment-in-kind notes due 2013, to 'CCC-' from 'D'. The issue ratings on the senior secured EUR165 million credit facilities at the group's subsidiary Invitel Zrt. were raised to 'CCC+' from 'CC'. S&P previously had lowered the long-term corporate credit rating on Invitel Holdings to 'SD' on Nov. 4, 2009, after the effective completion of three cash tender offers on Nov. 2, 2009, at substantial discounts to the par amount of the respective outstanding issues. Under its criteria, S&P considered these to be distressed exchange offers, and as such, tantamount to default. "The rating actions reflect S&P's assessment of Invitel Holdings' financial risk profile as still highly leveraged coupled with weak liquidity," said Standard & Poor's credit analyst Matthias Raab. In S&P's opinion, it is likely that the group's liquidity will indeed remain constrained by its demanding debt maturity profile in 2010 and 2011, and that leverage will remain very high. This is because S&P continue to expect that the group's EBITDA and free cash flow generation could suffer because of the current macroeconomic downturn in Hungary and southeastern Europe, structural fixed-to-mobile substitution, stagnant wholesale data revenues, a further slowdown in broadband subscriber growth, and high competitive price pressure. Nevertheless, the group's free cash flow generation is likely to benefit from a reduced cash-interest burden -- about EUR7 million per year according to S&P's calculations -- due to a principal reduction of cash-interest-paying debt of about EUR96 million. In addition, according to S&P's calculations, the risk of a covenant breach under the group's senior secured credit facilities until the end of 2010 has declined materially. This is because the group has received consent for various amendments to its financial maintenance covenants. S&P expects that the group's gross debt is unlikely to decline significantly in the medium term because debt amortizations are likely to be offset largely by the group's quickly accruing PIK debt instruments. "The stable outlook reflects S&P's expectation that Invitel Holdings is likely to cover its upcoming debt maturities by free cash flow generation and to maintain sufficient liquidity and headroom under its covenants over the relatively near term, and probably until the end of 2010," said Mr. Raab. ============= I R E L A N D ============= ALLIED IRISH: Fitch Affirms Individual Rating at 'D/E' ------------------------------------------------------ Fitch Ratings has affirmed the Long-term Issuer Default Ratings and Support Rating Floors of Ireland-based Allied Irish Banks plc, Anglo Irish Bank Corporation Ltd, and Bank of Ireland at 'A-', and EBS Building Society's and Irish Nationwide Building Society's Long-term IDRs and Support Rating Floors at 'BBB-'. The ratings of the five banks' government-guaranteed senior unsecured notes have been downgraded to 'AA-' from 'AA+'. The rating actions follow Fitch's 4 November 2009 downgrade of the Republic of Ireland's Long-term IDR to 'AA-' from 'AA+'. Ireland's Outlook is Stable. The agency has simultaneously affirmed all five banks' Individual Ratings, and Support Ratings, as well as Anglo's Short-term IDR. Fitch has maintained the Short-term IDRs of AIB, BoI, EBS and INBS of 'F1+', on Rating Watch Negative. A full rating breakdown for the banks and their subsidiaries is provided at the end of this comment. The banks' Support Rating Floors continue to reflect the high probability of support from the Irish financial authorities, should it be required. Fitch believes there has been no change to the propensity of the Irish government to support the banking system, although its ability to do so has weakened as implied by the agency's downgrade of Ireland's sovereign Long-term IDR (for further information, see the 4 November comment, entitled "Fitch Downgrades Ireland's Sovereign Rating to 'AA-'; Outlook Stable" which is available at www.fitchratings.com). However, the worsening in the probability of default of Ireland is small, which is reflected in the affirmation of the Support Rating Floors at 'A-' and 'BBB-' respectively. In the past 12 months the Irish government has taken significant measures to provide support to the country's banks, including a liability guarantee scheme and the injection of equity in the form of preference shares and ordinary shares. The government plans to remove risky real estate assets from the banks' balance sheets by introducing a scheme to be administered by the National Asset Management Agency. These measures are costly and Fitch incorporated their impact on government finances when it downgraded the country's Long-term IDR. The rating actions are: Allied Irish Banks plc -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on Rating Watch Negative -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior debt: affirmed at 'A-' -- Commercial paper: 'F1+'; maintained on Rating Watch Negative -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Lower Tier 2 debt: affirmed at 'BBB+' -- Upper Tier 2: 'B+'; maintained on RWN -- Tier 1: 'B'; maintained on RWN AIB Bank (CI) Limited -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' AIB Group (UK) plc -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' Anglo Irish Bank Corporation Ltd: -- Long-term IDR: affirmed at 'A-'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior unsecured; affirmed at 'A-' -- Commercial paper: affirmed at 'F1+' -- Guaranteed senior unsecured; Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Lower Tier 2: affirmed at 'BBB+' -- Upper Tier 2: affirmed at 'CC' -- Tier 1: affirmed at 'C' Anglo Irish Mortgage Bank: -- Long-term IDR: affirmed at 'A-'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Support Rating: affirmed at '1' Bank of Ireland -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'C/D' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior unsecured: affirmed at 'A-' -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Lower Tier 2 debt: affirmed at 'BBB+' -- Tier 1: 'B'; maintained on RWN EBS Building Society: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed 'E' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' -- Senior unsecured: 'BBB'; maintained on RWN -- Commercial paper: 'F1+'; maintained on Rating Watch Negative -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Preference shares: 'B'; maintained on RWN EBS Mortgage Finance: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Support Rating: affirmed at '2' Irish Nationwide Building Society: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' -- Senior unsecured: affirmed at 'BBB-' -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Lower Tier 2: 'BB+'; maintained on RWN ANGLO IRISH: Fitch Affirms Individual Rating at 'E' --------------------------------------------------- Fitch Ratings has affirmed the Long-term Issuer Default Ratings and Support Rating Floors of Ireland-based Allied Irish Banks plc, Anglo Irish Bank Corporation Ltd, and Bank of Ireland at 'A-', and EBS Building Society's and Irish Nationwide Building Society's Long-term IDRs and Support Rating Floors at 'BBB-'. The ratings of the five banks' government-guaranteed senior unsecured notes have been downgraded to 'AA-' from 'AA+'. The rating actions follow Fitch's 4 November 2009 downgrade of the Republic of Ireland's Long-term IDR to 'AA-' from 'AA+'. Ireland's Outlook is Stable. The agency has simultaneously affirmed all five banks' Individual Ratings, and Support Ratings, as well as Anglo's Short-term IDR. Fitch has maintained the Short-term IDRs of AIB, BoI, EBS and INBS of 'F1+', on Rating Watch Negative. A full rating breakdown for the banks and their subsidiaries is provided at the end of this comment. The banks' Support Rating Floors continue to reflect the high probability of support from the Irish financial authorities, should it be required. Fitch believes there has been no change to the propensity of the Irish government to support the banking system, although its ability to do so has weakened as implied by the agency's downgrade of Ireland's sovereign Long-term IDR (for further information, see the 4 November comment, entitled "Fitch Downgrades Ireland's Sovereign Rating to 'AA-'; Outlook Stable" which is available at www.fitchratings.com). However, the worsening in the probability of default of Ireland is small, which is reflected in the affirmation of the Support Rating Floors at 'A-' and 'BBB-' respectively. In the past 12 months the Irish government has taken significant measures to provide support to the country's banks, including a liability guarantee scheme and the injection of equity in the form of preference shares and ordinary shares. The government plans to remove risky real estate assets from the banks' balance sheets by introducing a scheme to be administered by the National Asset Management Agency. These measures are costly and Fitch incorporated their impact on government finances when it downgraded the country's Long-term IDR. The rating actions are: Allied Irish Banks plc -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on Rating Watch Negative -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior debt: affirmed at 'A-' -- Commercial paper: 'F1+'; maintained on Rating Watch Negative -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Lower Tier 2 debt: affirmed at 'BBB+' -- Upper Tier 2: 'B+'; maintained on RWN -- Tier 1: 'B'; maintained on RWN AIB Bank (CI) Limited -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' AIB Group (UK) plc -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' Anglo Irish Bank Corporation Ltd: -- Long-term IDR: affirmed at 'A-'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior unsecured; affirmed at 'A-' -- Commercial paper: affirmed at 'F1+' -- Guaranteed senior unsecured; Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Lower Tier 2: affirmed at 'BBB+' -- Upper Tier 2: affirmed at 'CC' -- Tier 1: affirmed at 'C' Anglo Irish Mortgage Bank: -- Long-term IDR: affirmed at 'A-'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Support Rating: affirmed at '1' Bank of Ireland -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'C/D' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior unsecured: affirmed at 'A-' -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Lower Tier 2 debt: affirmed at 'BBB+' -- Tier 1: 'B'; maintained on RWN EBS Building Society: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed 'E' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' -- Senior unsecured: 'BBB'; maintained on RWN -- Commercial paper: 'F1+'; maintained on Rating Watch Negative -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Preference shares: 'B'; maintained on RWN EBS Mortgage Finance: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Support Rating: affirmed at '2' Irish Nationwide Building Society: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' -- Senior unsecured: affirmed at 'BBB-' -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Lower Tier 2: 'BB+'; maintained on RWN EBS BUILDING: Fitch Affirms Individual Rating at 'E' --------------------------------------------------- Fitch Ratings has affirmed the Long-term Issuer Default Ratings and Support Rating Floors of Ireland-based Allied Irish Banks plc, Anglo Irish Bank Corporation Ltd, and Bank of Ireland at 'A-', and EBS Building Society's and Irish Nationwide Building Society's Long-term IDRs and Support Rating Floors at 'BBB-'. The ratings of the five banks' government-guaranteed senior unsecured notes have been downgraded to 'AA-' from 'AA+'. The rating actions follow Fitch's 4 November 2009 downgrade of the Republic of Ireland's Long-term IDR to 'AA-' from 'AA+'. Ireland's Outlook is Stable. The agency has simultaneously affirmed all five banks' Individual Ratings, and Support Ratings, as well as Anglo's Short-term IDR. Fitch has maintained the Short-term IDRs of AIB, BoI, EBS and INBS of 'F1+', on Rating Watch Negative. A full rating breakdown for the banks and their subsidiaries is provided at the end of this comment. The banks' Support Rating Floors continue to reflect the high probability of support from the Irish financial authorities, should it be required. Fitch believes there has been no change to the propensity of the Irish government to support the banking system, although its ability to do so has weakened as implied by the agency's downgrade of Ireland's sovereign Long-term IDR (for further information, see the 4 November comment, entitled "Fitch Downgrades Ireland's Sovereign Rating to 'AA-'; Outlook Stable" which is available at www.fitchratings.com). However, the worsening in the probability of default of Ireland is small, which is reflected in the affirmation of the Support Rating Floors at 'A-' and 'BBB-' respectively. In the past 12 months the Irish government has taken significant measures to provide support to the country's banks, including a liability guarantee scheme and the injection of equity in the form of preference shares and ordinary shares. The government plans to remove risky real estate assets from the banks' balance sheets by introducing a scheme to be administered by the National Asset Management Agency. These measures are costly and Fitch incorporated their impact on government finances when it downgraded the country's Long-term IDR. The rating actions are: Allied Irish Banks plc -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on Rating Watch Negative -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior debt: affirmed at 'A-' -- Commercial paper: 'F1+'; maintained on Rating Watch Negative -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Lower Tier 2 debt: affirmed at 'BBB+' -- Upper Tier 2: 'B+'; maintained on RWN -- Tier 1: 'B'; maintained on RWN AIB Bank (CI) Limited -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' AIB Group (UK) plc -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' Anglo Irish Bank Corporation Ltd: -- Long-term IDR: affirmed at 'A-'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior unsecured; affirmed at 'A-' -- Commercial paper: affirmed at 'F1+' -- Guaranteed senior unsecured; Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Lower Tier 2: affirmed at 'BBB+' -- Upper Tier 2: affirmed at 'CC' -- Tier 1: affirmed at 'C' Anglo Irish Mortgage Bank: -- Long-term IDR: affirmed at 'A-'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Support Rating: affirmed at '1' Bank of Ireland -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'C/D' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior unsecured: affirmed at 'A-' -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Lower Tier 2 debt: affirmed at 'BBB+' -- Tier 1: 'B'; maintained on RWN EBS Building Society: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed 'E' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' -- Senior unsecured: 'BBB'; maintained on RWN -- Commercial paper: 'F1+'; maintained on Rating Watch Negative -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Preference shares: 'B'; maintained on RWN EBS Mortgage Finance: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Support Rating: affirmed at '2' Irish Nationwide Building Society: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' -- Senior unsecured: affirmed at 'BBB-' -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Lower Tier 2: 'BB+'; maintained on RWN IRISH NATIONWIDE: Fitch Affirms Individual Rating at 'E' -------------------------------------------------------- Fitch Ratings has affirmed the Long-term Issuer Default Ratings and Support Rating Floors of Ireland-based Allied Irish Banks plc, Anglo Irish Bank Corporation Ltd, and Bank of Ireland at 'A-', and EBS Building Society's and Irish Nationwide Building Society's Long-term IDRs and Support Rating Floors at 'BBB-'. The ratings of the five banks' government-guaranteed senior unsecured notes have been downgraded to 'AA-' from 'AA+'. The rating actions follow Fitch's 4 November 2009 downgrade of the Republic of Ireland's Long-term IDR to 'AA-' from 'AA+'. Ireland's Outlook is Stable. The agency has simultaneously affirmed all five banks' Individual Ratings, and Support Ratings, as well as Anglo's Short-term IDR. Fitch has maintained the Short-term IDRs of AIB, BoI, EBS and INBS of 'F1+', on Rating Watch Negative. A full rating breakdown for the banks and their subsidiaries is provided at the end of this comment. The banks' Support Rating Floors continue to reflect the high probability of support from the Irish financial authorities, should it be required. Fitch believes there has been no change to the propensity of the Irish government to support the banking system, although its ability to do so has weakened as implied by the agency's downgrade of Ireland's sovereign Long-term IDR (for further information, see the 4 November comment, entitled "Fitch Downgrades Ireland's Sovereign Rating to 'AA-'; Outlook Stable" which is available at www.fitchratings.com). However, the worsening in the probability of default of Ireland is small, which is reflected in the affirmation of the Support Rating Floors at 'A-' and 'BBB-' respectively. In the past 12 months the Irish government has taken significant measures to provide support to the country's banks, including a liability guarantee scheme and the injection of equity in the form of preference shares and ordinary shares. The government plans to remove risky real estate assets from the banks' balance sheets by introducing a scheme to be administered by the National Asset Management Agency. These measures are costly and Fitch incorporated their impact on government finances when it downgraded the country's Long-term IDR. The rating actions are: Allied Irish Banks plc -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on Rating Watch Negative -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior debt: affirmed at 'A-' -- Commercial paper: 'F1+'; maintained on Rating Watch Negative -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Lower Tier 2 debt: affirmed at 'BBB+' -- Upper Tier 2: 'B+'; maintained on RWN -- Tier 1: 'B'; maintained on RWN AIB Bank (CI) Limited -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' AIB Group (UK) plc -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'D/E' -- Support Rating: affirmed at '1' Anglo Irish Bank Corporation Ltd: -- Long-term IDR: affirmed at 'A-'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior unsecured; affirmed at 'A-' -- Commercial paper: affirmed at 'F1+' -- Guaranteed senior unsecured; Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Lower Tier 2: affirmed at 'BBB+' -- Upper Tier 2: affirmed at 'CC' -- Tier 1: affirmed at 'C' Anglo Irish Mortgage Bank: -- Long-term IDR: affirmed at 'A-'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Support Rating: affirmed at '1' Bank of Ireland -- Long-term IDR: affirmed at 'A-'; Stable Outlook -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'C/D' -- Support Rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Senior unsecured: affirmed at 'A-' -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Lower Tier 2 debt: affirmed at 'BBB+' -- Tier 1: 'B'; maintained on RWN EBS Building Society: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed 'E' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' -- Senior unsecured: 'BBB'; maintained on RWN -- Commercial paper: 'F1+'; maintained on Rating Watch Negative -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Guaranteed senior unsecured: Short-term rating affirmed at 'F1+' -- Preference shares: 'B'; maintained on RWN EBS Mortgage Finance: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Support Rating: affirmed at '2' Irish Nationwide Building Society: -- Long-term IDR: affirmed at 'BBB-'; Outlook Stable -- Short-term IDR: 'F1+'; maintained on RWN -- Individual Rating: affirmed at 'E' -- Support Rating: affirmed at '2' -- Support Rating Floor: affirmed at 'BBB-' -- Senior unsecured: affirmed at 'BBB-' -- Guaranteed senior unsecured: Long-term rating downgraded to 'AA-' from 'AA+' -- Lower Tier 2: 'BB+'; maintained on RWN O'BRIENS SANDWICH: Irish Unit Bought Out Liquidation by Impless --------------------------------------------------------------- British Baker reports that the Irish arm of the O'Briens Sandwich Bar has been bought out of liquidation by Impless, a newly formed subsidiary of Irish fast food group Abrakebabra Investments. British Baker relates Paul McCann of Grant Thornton, the official liquidator, confirmed the trade and assets, including the brand of O'Brien's Irish Sandwich Bars, had now been sold to Impless. On Oct. 9, 2009, the Troubled Company Reporter-Europe, citing Irish Examiner, reported O'Brien's went into liquidation after a proposed takeover by AIL collapsed. O'Brien's Sandwich Bars -- http://www.obriensonline.com/-- has more than 300 stores providing healthy food option in 13 countries across Europe, Asia, Australia and Africa. The company sells made-to-order hot or cold sandwiches -- ShambosTM, Tripledecker, Wrappos and Toosties. The extensive selection includes gourmet coffees, fresh soups, patisseries, deli dishes, salads, snacks and a wide range of soft drinks, including freshly made smoothies and juices from the instore juice bar offerings. SMART TELECOM: Digiweb to Acquire Business Out of Examinership -------------------------------------------------------------- The Irish Examiner reports that Digiweb is to acquire the entire customer service base and assets of Smart Telecom. According to the report, the investment by Digiweb, which is subject to approval by creditors and the High Court, will allow Smart to emerge from a period of examinership and to form part of the Digiweb Group. Terms of the deal were not revealed. As reported by the Troubled Company Reporter-Europe on Sept. 2, 2009, Smart entered into an examinership process following the conclusion of an extensive strategic review by the company's financial advisors, Collins Stewart, that revealed significant expressions of interest in the company. The Irish Commercial court appointed John McStay, of McStay Luby Chartered Accounts as the interim examiner for the company. As part of the review process, however, it became clear that Smart remained burdened by a range of legacy liabilities which inhibited the ability of the company to conclude a transaction or raise additional financing, particularly in the context of the current global financial crisis. About Smart Telecom Smart Telecom is a provider of voice, data and media communications services to residential, government and corporate customers. ========= I T A L Y ========= CAPITAL MORTGAGE: Fitch Junks Rating on Class C Notes From 'BBB-' ----------------------------------------------------------------- Fitch Ratings has downgraded two tranches of Capital Mortgage Series 2007-1 and revised the Outlook on the senior tranche to Negative from Stable. These rating actions follow Fitch's on- going concern over the performance of the deal. The ratings are: -- Class A1 (ISIN IT0004222532) affirmed at 'AAA'; Outlook revised to Negative from Stable; Loss Severity Rating 'LS-1' -- Class A2 (ISIN IT0004222540) affirmed at 'AAA'; Outlook revised to Negative from Stable; Loss Severity Rating 'LS-1' -- Class B (ISIN IT0004222557) downgraded to 'BBB-' from 'AA'; Outlook Negative; Loss Severity Rating 'LS-3' -- Class C (ISIN IT0004222565) downgraded to 'CCC' from 'BBB-'; Recovery Rating 'RR5' assigned The investor report for October 2009 shows a further reserve fund draw of EUR8 million, which has left the class C tranche with credit enhancement of 0.26% (excluding over-collateralization), and a significant drop in the credit enhancement of the class B notes to 1.8% (excluding over-collateralization), below the level seen at transaction close (2.5%). The reserve fund draws continue to be caused by loans classified as defaulted, which in September 2009 reached a cumulative balance of EUR97 million. Despite the decreasing amount of loans in arrears, the level of loans recognized as defaulted in the past two payment dates remains at levels seen in the past when arrears performance was also a concern. Fitch used its EMEA RMBS surveillance criteria, employing its credit cover multiple methodology in reviewing the deals to assess the level of credit support available to each class of notes. In its analysis, Fitch has assumed that the volume of loans recognized as defaulted remains at current levels in the near term, which means that the reserve fund is likely to be depleted and that amounts will remain outstanding on the class C principal deficiency ledger in the forthcoming payment date in January 2010. The size of the reserve fund draws seen in the past two quarters are also impacted by the swap in place. The structure of the payments made by the issuer to the swap counterparty incorporates payments received from the performing portion of the fixed-, mixed- and floating-rate loans. The data shows that the main portion of the payments made to the swap counterparty are coming from the fixed portion of the pool, thereby causing the reserve fund to draw by an additional EUR2.2 million. The Negative Outlook on the 'AAA' rated notes reflects the uncertainty over the amount of defaults that will occur in the forthcoming payment dates. Fitch will continue to closely monitor the performance of this transaction. If defaults remain at current levels, Fitch may decide to take further rating actions on the class A notes. =================== K A Z A K H S T A N =================== A TRADE: Creditors Must File Claims by November 18 -------------------------------------------------- Creditors of LLP A Trade have until November 18, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on August 5, 2009. ASIAN EXPRESS: Creditors Must File Claims by November 18 -------------------------------------------------------- LLP Asian Express is currently undergoing liquidation. Creditors have until November 18, 2009, to submit proofs of claim to: 24 Iyunya Str. 27 Almaty Kazakhstan ELENA LLP: Creditors Must File Claims by November 18 ---------------------------------------------------- Creditors of LLP Manufacturing Commercial Firm Elena have until November 18, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on August 10, 2009. FATEX LTD: Creditors Must File Claims by November 18 ---------------------------------------------------- Creditors of LLP Fatex Ltd. have until November 18, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Satpaev Str. 16 Aktube Kazakhstan The court commenced bankruptcy proceedings against the company on August 14, 2009. MIKAI EXPORT: Creditors Must File Claims by November 18 ------------------------------------------------------- Creditors of LLP Mikai Export have until November 18, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Aktube Satpaev Str. 16 Aktube Kazakhstan The court commenced bankruptcy proceedings against the company on August 14, 2009. NUR TECH: Creditors Must File Claims by November 18 --------------------------------------------------- LLP Nur Tech Snub is currently undergoing liquidation. Creditors have until November 18, 2009, to submit proofs of claim to: Micro District 8, 57-5 Shymkent South Kazakhstan Kazakhstan OTANDASTAR PHARMATSIYA: Creditors Must File Claims by November 18 ----------------------------------------------------------------- Creditors of LLP Otandastar Pharmatsiya have until November 18, 2009, to submit proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan The court commenced bankruptcy proceedings against the company on July 27, 2009. STROY PROM: Creditors Must File Claims by November 18 ----------------------------------------------------- Creditors of LLP Stroy Prom M have until November 18, 2009, to submit proofs of claim to: Abylai Han Ave. 2 Almaty Kazakhstan The Specialized Inter-Regional Economic Court of Almaty commenced bankruptcy proceedings against the company on July 23, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Almaty Baizakov Str. 273b Almaty Kazakhstan TARNAS LLP: Creditors Must File Claims by November 18 ----------------------------------------------------- Creditors of LLP Tarnas have until November 18, 2009, to submit proofs of claim to: Park Otdyha Str. 2 Atyrau Kazakhstan The Specialized Inter-Regional Economic Court of Atyrau commenced bankruptcy proceedings against the company on August 14, 2009, after finding it insolvent. The Court is located at: The Specialized Inter-Regional Economic Court of Atyrau Satpaev Str. 3 Atyrau Kazakhstan TECHNO JER: Creditors Must File Claims by November 18 ----------------------------------------------------- LLP Techno Jer is currently undergoing liquidation. Creditors have until November 18, 2009, to submit proofs of claim to: Gogol Str. 10-15 Ust-Kamenogorsk East Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== AUTO IMPORT: Creditors Must File Claims by December 2 ----------------------------------------------------- LLC Auto Import is currently undergoing liquidation. Creditors have until December 2, 2009, to submit proofs of claim to: Repin Str. 180 Bishkek Kyrgyzstan Tel: (+996 312) 31-61-77 PROM TORG: Creditors Must File Claims by December 2 --------------------------------------------------- LLC Prom Torg is currently undergoing liquidation. Creditors have until December 2, 2009, to submit proofs of claim to: Ahunbayev Str. 170a Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== EUROLOAN CLO: Moody's Downgrades Rating on Class D Notes to 'Ca' ---------------------------------------------------------------- Moody's Investors Service took these rating actions on notes issued by Euroloan CLO I. -- EUR195M Class A1 Notes, Downgraded to Aa1; previously on June 2, 2009 Aaa Placed Under Review for Possible Downgrade -- EUR65M Class A2 Notes, Downgraded to A2; previously on June 2, 2009 Downgraded to A1 and Remained On Review for Possible Downgrade -- EUR30M Class B Notes, Downgraded to Ba2; previously on June 2, 2009 Downgraded to Ba1 and Remained On Review for Possible Downgrade -- EUR18M Class C Notes, Downgraded to B3; previously on June 2, 2009 Downgraded to B2 and Remained On Review for Possible Downgrade -- EUR21M Class D Notes, Downgraded to Ca; previously on June 2, 2009 Downgraded to Caa3 and Remained On Review for Possible Downgrade This transaction is a static collateralized loan obligation with exposure to predominantly European senior secured loans, as well as a large exposure to mezzanine CLO tranches (above 16%). In the analysis of this transaction, Moody's used information from the July 2009 trustee report, which is the latest available trustee information. In June 2009, approximately EUR75 million of non-invested cash remained in the transaction as of February 2009 (most recent trustee information at the time of the rating actions). From this amount, EUR35 million had been invested in collateral obligations whose characteristics were not disclosed to Moody's at the time and EUR40 million could not be invested following a failure of the ramp-up ending April 2009. Therefore, Moody's had to make assumptions regarding the credit quality of the recently purchased assets and assumed that the cash would be used to pay down the Class A1 notes at the next payment date in July 2009, as per the transaction documents. Moody's left all classes of notes on review for possible downgrade pending further information. Since the last rating action, the EUR40 million of un-invested cash has been used to redeem pro rata 12.57% of Class A1, A2, and B, and to redeem pro rata 5.32% of Class C, D, and E. Therefore, the rating actions are the result of both new information on the use of available cash and credit deterioration of the underlying portfolio since Moody's rating actions on 2 June 2009. The credit deterioration is observed through a sharp decrease of the Class A/B par value test from 127.69% in February 2009 to 106.46% in July 2009, an increase in the amount of defaulted securities (4.46% of the portfolio) and an increase in the proportion of securities from issuers rated Caa1 and below (11.2% of the portfolio). These measures were taken from the trustee report dated 20 July 2009. Moody's also performed a number of sensitivity analyses, including consideration of a further decline in portfolio WARF quality combined with a decrease in the expected recovery rates. In addition, Moody's is concerned that the rapid credit deterioration could eventually lead to an Event of Default on the notes and a liquidation that could be detrimental to tranches below the controlling Class of the transaction (Class A1). =========== N O R W A Y =========== TRICO SUPPLY: S&P Raises Corporate Credit Rating to 'CCC+' ---------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit ratings on oilfield services provider Trico Marine Services Inc. and its indirect foreign subsidiary, Trico Supply AS, to 'CCC+' from 'CCC'. S&P removed the ratings from CreditWatch, where they had been placed with developing implications on Oct. 15, 2009. The outlook is developing, indicating that S&P could raise, lower, or affirm the ratings. Standard & Poor's also raised the issue-level rating on Trico Marine's US$202.8 million 8.125% senior convertible notes to 'CCC' from 'CCC-'; the recovery rating remains '5'. In addition, S&P raised the issue-level rating on Trico Marine's US$150 million 3% senior convertible debentures to 'CCC-' from 'CC'. The recovery on this debt remains '6'. The 'B-' issue-level rating and '2' recovery rating for Trico Shipping AS's $400 million senior secured notes remain unchanged. The rating actions follow the closing of a US$400 million senior secured notes offering by Trico Marine's indirect foreign subsidiary Trico Shipping. Because of impending debt maturities in January 2010, Trico Marine and its subsidiaries entered into a number of refinancing related transactions. Trico Marine issued, through Trico Supply's subsidiary Trico Shipping, US$400 million in senior secured notes, which together with the proceeds of certain asset sales, Trico Marine used to repay debts that were outstanding at Trico Supply and its subsidiaries. Trico Marine also paid down a portion of its US$35 million revolver, the commitment of which decreased to US$25 million. In addition, Trico Shipping obtained an unrated US$33 million credit facility. "The ratings on Trico Marine and Trico Supply reflect the companies' position as oilfield services providers in a cyclical and highly competitive industry, S&P's expectations of generally weak industry conditions, the companies' very high debt leverage measures, and tight liquidity concerns," said Standard & Poor's credit analyst Patrick Lee. Given the interrelated nature of the relationship between Trico Marine and Trico Supply, S&P link the corporate credit ratings of the two entities together and assign Trico Supply the same corporate credit rating as Trico Marine. Trico Supply's business profiles as vulnerable. S&P could lower the ratings if Trico Marine's very thin liquidity tightens in 2010. Trico Marine's liquidity and ability to make payments may be affected by negative expected EBITDA, limited upstreaming of funds from Trico Supply, the potential sale of the vessel Corona in the first quarter of 2010, and the ability to pay convertible debt interest in stock. S&P could raise the ratings if the company timely sells the Corona and pays convertible debt interest in stock to enhance liquidity, and if Trico Marine's business segments' operating performance improves, providing much- needed positive cash flow. =========== R U S S I A =========== COMSTAR UNITED: S&P Affirms Corporate Credit Rating at 'BB' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'BB' corporate credit and 'ruAA' Russia national scale ratings on Russian telecoms operator Comstar United TeleSystems (JSC) and its majority-owned subsidiary, Moscow City Telephone Network (JSC). The ratings were removed from CreditWatch, where they had been placed with negative implications on April 1, 2009. The outlook on both Comstar and MGTS is stable. "The affirmation reflects Standard & Poor's view that Comstar's weakened stand-alone credit profile -� given an onerous debt maturity profile -- is enhanced, both from a business and financial standpoint, by being owned by a stronger parent," said Standard & Poor's credit analyst Alexander GriazNov. At this stage, S&P does not equalize the ratings on Comstar with those on its new parent, Mobile TeleSystems (OJSC) (BB/Stable/--). However, if MTS increases its equity share in Comstar to more than 75%, and/or demonstrates Comstar's strategic importance and provides timely financial support, S&P would likely equalize the ratings. Comstar's stand-alone credit profile is constrained by its ambitious growth strategy, strong competition in the residential broadband market, and a weakening liquidity position. Supporting the ratings are the company's strong position in the lucrative Moscow market; a resilient cash flow base, stemming from its ownership of existing infrastructure; and a favorable operating performance. At the end of second-quarter 2009, Comstar's fully adjusted debt totaled $955 million, representing 1.5x its EBITDA for the 12 months ended June 30, 2009. Comstar's cash flow protection metrics also support the ratings. The ratio of funds from operations to total debt stood at 52.3% on June 30, 2009, demonstrating the company's resilient revenue base and adequate cash conversion. The stable outlook reflects S&P's expectation that Comstar will continue generating robust cash flow, supported by the strong performance of its incumbent subsidiary MGTS. S&P also factor in expected financial support from MTS, which Comstar might need to service its debt facility. S&P would also likely equalize the ratings upon completion of the transaction with the state, which would minimize Comstar's debt. Any further rating action on MTS would likely trigger a revision of and possible rating action on Comstar. "We might lower the ratings if S&P see no financial support from MTS related to servicing Comstar's approaching debt maturities," said Mr. Griaznov. EKSPO-STROY: Creditors Must File Claims by November 16 ------------------------------------------------------ Creditors of LLC Ekspo-Stroy (TIN 5029055273) (Construction) have until November 16, 2009, to submit proofs of claims to: V. Goncharov Temporary Insolvency Manager Post User Box 61 115230 Moscow-230 Russia The Arbitration Court of Moskovskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. ?41� 24640/09. The Debtor can be reached at: LLC Ekspo-Stroy Silikatnaya Str. 16V Mytishchi Russia LES-SERVIS: Creditors Must File Claims by November 16 ----------------------------------------------------- Creditors of LLC Les-Servis (TIN 2407012483, PSRN 1022400595546) (Timber Production) have until November 16, 2009, to submit proofs of claims to: I. Nozdrin Temporary Insolvency Manager 78 Dobrovolcheskoy Brigady Str. 14A-22 660077 Krasnoyarsk Russia The Arbitration Court of Krasnoyarskiy will convene on December 21, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?33�10706/200. The Debtor can be reached at: LLC Les-Servis Lenina Str. 1 Angarskiy Boguchanskiy 663440 Krasnoyarskiy Russia MOBILE TELESYSTEMS: S&P Affirms Corporate Credit Rating at 'BB' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'BB' corporate credit ratings on Russian telecoms operator Mobile TeleSystems (OJSC)). The rating was removed from CreditWatch, where it had been placed with negative implications on April 1, 2009. The outlook, which was positive before the CreditWatch placement, is now stable. The affirmation reflects the successful acquisition of Comstar United TeleSystems (JSC) (BB/Stable/--) and the resolution of the CreditWatch on MTS' parent company Sistema (JSFC), which was affirmed at BB/Negative/--. "The outlook revision on MTS reflects the weakening of the company's financial profile due to a higher debt burden and constrained cash flow flexibility," said Standard & Poor's credit analyst Alexander GriazNov. "However, in S&P's view, it still remains compatible with the 'BB' rating." For a 50.91% stake in Comstar, MTS paid Sistema nearly US$1.32 billion. MTS financed the acquisition with bilateral loans from Sberbank in the total amount of Russian ruble (RUR) 47 billion ($1.6 billion). MTS' debt metrics before the CreditWatch placement were strong for the rating and even implied some headroom for growth. However, as a result of the acquisition, MTS' gross debt increased to about US$8 billion and leverage increased to about 2x from 1x before the transaction. S&P is aware that MTS has meaningful cash balances to reduce its debt, but S&P also recognizes that there are a number of additional growth opportunities for MTS that could lead to reduced available liquidity. S&P continue to see the credit quality of MTS and its parent company Sistema as being closely linked. MTS' potential equity participation in Sistema's construction of a mobile network in India could likely reinforce S&P's views that MTS' and Sistema's credit quality should be strictly aligned. From a stand-alone business perspective, MTS' main credit risks are associated with the company's own organic and external growth plans, intensifying competition, and the weakening macroeconomic environment in the countries where MTS operates. These risks are mitigated by the company's strong business characteristics, based on solid positions in the Russian and Ukrainian mobile markets. These characteristics include robust growth with steadily improving economies of scale, sound operating profitability, and strong cash generation. The stable outlook reflects S&P's expectation of continuing strong operating performance, despite the currently challenging macroeconomic environment. S&P also expect increasing focus on profitability and strong cash conversion that should allow strong cash flow protection ratios. "We might lower the rating if debt leverage surged or liquidity deteriorated, driven by MTS' increasing investments, opportunistic acquisitions, or aggressive shareholder distributions," said Mr. GriazNov. At this rating level S&P does not expect leverage to increase above 2.5x. An upgrade might follow a clear deleveraging strategy, moderation f MTS' investment appetite, and conservatism in shareholder distributions. MOZDOKSKIY CHEESE: Creditors Must File Claims by November 16 ------------------------------------------------------------ Creditors of MUE Mozdokskiy Cheese Factory (TIN 1510013070, ???? 1051500106844) have until November 16, 2009, to submit proofs of claims to: V. Bulda Temporary Insolvency Manager Building 17 Microregion 1 Budennovsk 356805 Stavropolskiy Russia The Arbitration Court of North Osetia-Alaniya will conven e on March 4, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?61�1502/09 . The Debtor can be reached at: MUE Mozdokskiy Cheese Factory Usanova Str. 57 Likovskaya Mozdokskiy 363720 North Osetia-Alaniya Russia NKNK FINANCE: Fitch Assigns 'B' Rating on Loan Participation Notes ------------------------------------------------------------------ Fitch Ratings has assigned NKNK Finance plc's US$101,394,000 12% loan participation notes due in 2012 a final senior unsecured 'B' rating. The rating is in line with the 'B' Long-term Issuer Default rating of NKNK-F's parent, OAO Nizhnekamskneftekhim's. The rating is placed on Rating Watch Negative, in line with the RWN on NKNK's Long-term IDR. The final rating on the notes follows Fitch's review of final documentation conforming to the information received by the agency in assigning the expected 'B' rating on October 30, 2009. The loan agreement, the trust deed and other related documents are governed by English law. To secure payments to noteholders, NKNK- F will charge in favor of the trustee, Deutsche Trustee Company Limited, by way of a first fixed charge, all rights to principal, interest and other amounts paid by NKNK and the right to receive all sums, which may be paid by NKNK under any claim, award or judgment relating to the loan agreement. The notes rank equally with all present or future unsecured debt of NKNK and contain a negative pledge and cross default clauses. Covenants in the loan agreement include, among others, a total consolidated debt-to- consolidated EBITDA (excluding the impact of foreign exchange fluctuations) ceiling of 3.5x. NKNK-F is a public limited liability company fully owned by NKNK and incorporated under the laws of Ireland. The company's purpose is to issue the notes and lend, under a loan agreement, the proceeds to NKNK. The notes will be repaid in three equal installments from April 2011. NKNK is based in the Republic of Tatarstan and is the largest petrochemicals producer in Russia. PROM-ZHIL: Creditors Must File Claims by November 16 ---------------------------------------------------- Creditors of CJSC Prom-Zhil-Stroy (TIN 3725004456, PSRN 1023701392802) (Construction) have until November 16, 2009, to submit proofs of claims to: V. Gorbachev Temporary Insolvency Manager ZagorodnayaStr. 12a Kolyanovo Ivanovskiy 153009 Ivanovskaya Russia The Arbitration Court of Ivanovskaya will convene on March 17, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ? 17�6851/2009�14B. The Debtor can be reached at: CJSC Prom-Zhil-Stroy Zelenaya Str. 86V Ostapovo Shuyskiy 155908 Ivanovskaya Russia RUSSIAN CONSTRUCTION: Creditors Must File Claims by November 16 --------------------------------------------------------------- Creditors of LLC Russian Construction Company (TIN ?12132690, PSRN 1063123076752) have until November 16, 2009, to submit proofs of claims to: V. Krotov Temporary Insolvency Manager Office 23 Promyshlenny proezd 308023 Belgorod Russia The Arbitration Court of Belgorodskaya will convene at 11:00 a.m. on February 9, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?08�7194/2009�24B. The Debtor can be reached at: LLC Russian Construction Company B. Khmelnitskogo Str. 132A Belgorod Russia SIBIRSKAYA IRON: Creditors Must File Claims by November 16 ---------------------------------------------------------- Creditors of OJSC Sibirskaya Iron and Steel Company (TIN 3810051560, PSRN 1083810001263) have until January 13, 2009, to submit proofs of claims to: A. Melnik Temporary Insolvency Manager Post User Box 41 664011 Irkutsk 11 Russia The Arbitration Court of Irkutskaya will convene on January 13, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?19�12064/09�60. The Debtor can be reached at: OJSC Sibirskaya Iron and Steel Company R. Lyuksemburg Str. 184-216 664048 Irkutsk Russia SISTEMA JSFC: S&P Affirms Corporate Credit Rating at 'BB' --------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'BB' corporate credit rating on Russian operating holding company Sistema (JSFC). The rating was removed from CreditWatch, where it had been placed with negative implications on April 1, 2009. The outlook, which was stable before the CreditWatch placement, is now negative. "The affirmation reflects Standard & Poor's Ratings Services' view that the acquisition of Bashkir Oil and Energy Group will not likely deteriorate Sistema's financial profile beyond what S&P would view as compatible with the 'BB' rating," said Standard & Poor's credit analyst Alexander GriazNov. While S&P previously indicated that, from a business standpoint, the acquisition is beneficial for Sistema as it improves its diversification, S&P were concerned about the potential deterioration of the company's financial profile. To finance the transaction, Sistema raised a loan of US$2 billion from JSC VTB Bank (BBB/Negative/A-3; Russia national scale 'ruAAA'), which negatively affected its credit ratios. However, Sistema is now in the process of reducing leverage at the holding company level, which will lead to meaningful improvement of the parent company's leverage. S&P understands that Bashneft, one of the subsidiaries in BOEG, will soon acquire stakes in five BOEG companies from Sistema, allowing Sistema to repay its debt to VTB. S&P also understand that Sistema's management has committed to repay the VTB loan at the latest by the end of the first quarter of 2010. Sistema has also recently repaid its RUR20 billion loan to Sberbank out of the proceeds it received from the sale of its fixed-line unit Comstar United TeleSystems (JSC) (BB/Stable/--); Russia national scale 'ruAA') to its mobile arm Mobile TeleSystems (OJSC) (BB/Stable/--). Sistema's management has also stated that it will aim to keep its parent-company-level debt at a level that does not meaningfully exceed the projected incoming dividend flow for the year, which S&P views as quite conservative. The ratings on Sistema are constrained by the company's relatively aggressive financial policy, with its strong focus on business growth; its predisposition for acquisitions; and the cash consumption of many of its growth-oriented business segments. In addition, Sistema is pursuing the ambitious capital-intensive construction of a nationwide mobile telecommunications network in India, which could further limit the company's cash-generation potential. The continuing strong performance of Sistema's core telecoms assets, the robust cash-generative nature of its largest subsidiaries, and the company's tangible progress in streamlining operations support the ratings. "The negative outlook reflects the possibility that S&P could lower the rating on Sistema by one or two notches if the company is unable to complete its targeted debt structuring by the end of the first quarter of 2010, aimed at significantly reducing leverage at the parent company level," said Mr. GriazNov. On the other hand, S&P would likely revise the outlook to stable if Sistema repays its debt to VTB out of the funds it receives from Bashneft. STROY-MASH: Creditors Must File Claims by November 17 ----------------------------------------------------- Creditors of CJSC Stroy-Mash (TIN 4823029034, PSRN 1064823066318) (Construction Site Equipment) have until November 17, 2009, to submit proofs of claims to: I. Sizova Insolvency Manager Stakhanova Str. 26 398036 Lipetsk Russia The Arbitration Court of Lipetskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?36�1602/2009. The Debtor can be reached at: CJSC Stroy-Mash Almaznaya Str. 6 398600 Lipetsk Russia SVIRSKAYA TRANSPORT: Creditors Must File Claims by November 16 -------------------------------------------------------------- Creditors of LLC Svirskaya Transport Company (TIN 3820007295, PSRN 1023802215788) have until November 16, 2009, to submit proofs of claims to: V. Alalykin Temporary Insolvency Manager Office 506 Baykalskaya Str. 291 664050 Irkutsk Russia The Arbitration Court of Irkutskaya will convene at 10:00 a.m. on January 20, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?19�14205/09�37. The Debtor can be reached at: LLC Svirskaya Transport Company Industrial zone 7 Svirsk Cheremkhovskiy 665420 Irkutskaya Russia TEKH-STROY: Creditors Must File Claims by November 16 ----------------------------------------------------- Creditors of LLC Tekh-Stroy-Invest 21 Vek (TIN 7701239400; PSRN 1037700089030) (Construction) have until November 16, 2009, to submit proofs of claims to: M. Belozertsev Temporary Insolvency Manager Gaya Str. 23A 460000 Orenburg Russia The Arbitration Court of Orenburgskaya will convene at 09:00 a.m. on February 16, 2010, to hear bankruptcy supervision procedure. The case is docketed under Case No. ?47�7333/2009. The Debtor can be reached at: LLC Tekh-Stroy-Invest 21 V Krasnoznamennaya Str. 14/9 Orenburg Russia ZAP-SIB: Creditors Must File Claims by November 16 -------------------------------------------------- Creditors of LLC Zap-Sib-Region-Gaz Gas Pipeline Construction and Exploitation) have until November 16, 2009, to submit proofs of claims to: D. Yutaev Insolvency Manager Post User Box 402 Postal Office 100 170100 Tver Russia The Arbitration Court of Tverskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. ?66�9942/2008. The Debtor can be reached at: LLC Zap-Sib-Region-Gaz Mokhova Str. 12 Novozavidovskiy Konakovskiy 171270 Tverskaya Russia VES-STROY: Astrakhanskaya Bankruptcy Hearing Set November 17 ------------------------------------------------------------ The Arbitration Court of Astrakhanskaya will convene at 2:00 p.m. on November 17, 2009, to hear bankruptcy supervision procedure on LLC Ves-Stroy (TIN 3016051662, PSRN 1073016000034, RVC 301601001). The case is docketed under Case No. ?06�3627/2009. The Temporary Insolvency Manager is: D. Savenkov Office 67 Krasnaya Naberezhnaya Str. 37 414040 Astrakhan Russia Tel: (8512)-226674 The Debtor can be reached at: LLC Ves-Stroy A. Koroleva Str. 8 Astrakhan Russia ========= S P A I N ========= GC FTGENCAT: Fitch Downgrades Rating on Class D Notes to 'C' ------------------------------------------------------------ Fitch Ratings has taken various rating actions on GC FTGENCAT Caixa Sabadell 1, FTA's notes. The rating actions resolve the Rating Watch Negative status assigned in August 2009 after Fitch revised its rating criteria for European granular corporate balance-sheet securitizations on July 23, 2009. The transaction is a small- and medium-sized enterprise collateralized debt obligation. The rating actions are: -- EUR51,236,726, class A(S) notes (ISIN ES0341098004): downgraded to 'BBB' from 'A'; removed from RWN; assigned a Stable Outlook; assigned Loss Severity Rating of 'LS-2' -- EUR163,000,000, class A(G) notes (ISIN ES0341098012): affirmed at 'A+'; Outlook revised to Negative from Stable -- EUR11,700,000, class B notes (ISIN ES0341098020): affirmed at 'B'; removed from RWN; assigned a Stable Outlook; assigned LS-4 -- EUR11,800,000, class C notes (ISIN ES0341098038): downgraded to 'CC' from 'CCC'; removed from RWN -- EUR4,500,000, class D notes (ISIN ES0341098046): downgraded to 'C' from 'CC'; removed from RWN The senior note downgrade principally reflects the implementation of Fitch's revised SME CDO rating criteria. The downgrade actions for class C and D also reflect the transaction's above-average delinquency levels, difficult macro-economic conditions, and relatively low credit enhancement. The low CE is explained by the fact that the transaction's revolving period ended in April 2009, so CE through deleveraging only started to build up from July 2009. As of September 2009, 6.47% of the outstanding collateral balance was more than 90 days in arrears. As of the same date, the cumulated level of defaults -- arrears exceeding 12 months, as defined in the transaction's documents -- amounted to 1.73% of the initial portfolio balance. Using its Rating Criteria for European SME CLOs, Fitch has assumed the probability of default of the unrated SME loans to be commensurate with the 'B' rating category. Based on observed delinquencies and the origination process of the respective banks in Spain, the benchmark probability of default is adjusted upward or downward. Delinquent loans are notched down depending on the time the loans have been in arrears. Recoveries for loans secured by first lien real estate is adjusted for property indexation and market value stress based on the criteria but second lien mortgages are treated as senior unsecured loans. The class A(G) notes benefit from an unconditional guarantee of the Generalitat de Catalunya (Autonomous Community of Catalonia or the guarantor, rated 'A+'/'F1+'/Outlook Negative) which covers the ultimate payment of interest and principal on these notes. As such, the rating of the class A(G) notes remains credit-linked to that of the guarantor, with current available CE being insufficient to support a higher rating for these notes. GC FTGENCAT Caixa Sabadell 1, FTA is a securitization of a pool which at closing amounted to EUR300m and consisted of 1,344 secured and unsecured loans granted to SMEs originated by Caixa Sabadell (rated 'BBB+'/'F2'/Outlook Negative). The collateral is 100% concentrated in the region of Catalonia. The transaction closed in October 2006. GC FTPYME: Fitch Downgrades Ratings on Class C Notes to 'CCC' ------------------------------------------------------------- Fitch Ratings has taken various rating actions on two small- and medium-sized enterprise collateralized debt obligations: GC FTPYME Sabadell 4, Fondo de Titulizacion de Activos and GC FTPYME Sabadell 5, Fondo de Titulizacion de Activos. The rating actions resolve the Rating Watch Negative status assigned in August 2009 pending the implementation of Fitch's revised rating criteria for European granular corporate balance-sheet securitizations. The rating actions are: GC FTPYME Sabadell 4, Fondo de Titulizacion de Activos: -- EUR84,049,409 class A(S) notes (ISIN ES0341169003): affirmed at AAA; removed from Rating Watch Negative (RWN); assigned Negative Outlook; assigned Loss Severity Rating 'LS-2' -- EUR162,300,000 class A(G) notes (ISIN ES0341169011): affirmed at 'AAA'; Outlook Stable -- EUR24,000,000 class B notes (ISIN ES0341169029): downgraded to 'BBB' from 'A'; removed from RWN; assigned Stable Outlook and 'LS-3' -- EUR14,300,000 class C notes (ISIN ES0341169037): downgraded to 'CCC' from 'BB'; removed from RWN GC FTPYME Sabadell 5, Fondo de Titulizacion de Activos: -- EUR439,567,153 class A2 notes (ISIN ES0332234014): downgraded to 'AA' from 'AAA'; removed from RWN; assigned Negative Outlook and 'LS-1' -- EUR82,800,000 class A3(G) notes (ISIN ES0332234022): affirmed at 'AAA'; Outlook Stable -- EUR40,000,000 class B notes (ISIN ES0332234030): downgraded to 'BB' from 'BBB'; removed from RWN; assigned Stable Outlook and 'LS-3' -- EUR26,900,000 class C notes (ISIN ES0332234048): downgraded to 'CCC' from 'B'; removed from RWN The downgrade of senior tranche class A2 of Sabadell 5 reflects the implementation of Fitch's revised SME CDO rating criteria. The class B and C downgrade actions for Sabadell 4 and 5 also considers the increasing delinquency levels, difficult macro- economic conditions and insufficient credit enhancement as the reserve funds are released in accordance with the transaction documents and the obligor concentration levels rise. Both transactions have benefited from portfolio seasoning and structural de-leveraging, but these were not enough to mitigate the deterioration in performance. Using its Rating Criteria for European SME CLOs, Fitch has assumed the probability of default of the unrated SME loans to be commensurate with the 'B' rating category. Based on observed delinquencies and the origination process of the respective banks in Spain, the benchmark probability of default is adjusted upward or downward. Delinquent loans are notched down depending on the time the loans have been in arrears. Recoveries for loans secured by first lien real estate is adjusted for property indexation and market value stress based on the criteria, but second lien mortgages are treated as senior unsecured loans. Sabadell 4 is a cash flow securitization of a static portfolio which as of closing amounted to EUR750m consisting of 3,270 loans to Spanish SMEs originated by Banco Sabadell ('A+'/'F1', Outlook Negative). This transaction closed in October 2005. The collateral outstanding balance has amortised to 36.7% of its initial balance. The pool shows an upwards trend in delinquencies, with 2.9% of the outstanding balance being in arrears of more than 90 days as of September 2009. As of the same date the cumulated level of defaults (arrears exceeding 12 months, as defined in the transaction's documents) amounted to 0.64% of the initial portfolio balance. Sabadell 4's Class A(G) notes benefit from a guarantee by the Kingdom of Spain ('AAA'/'F1+', Outlook Stable). This guarantee covers the ultimate payment of interest and principal on the mentioned notes until their respective final legal maturities. As such, the rating of this class remains credit-linked to the guarantor and therefore LS Ratings are not assigned. Sabadell 5 is a cash flow securitization of a static portfolio which at closing amounted to EUR1,250m and consisted of 5,786 loans granted by Banco de Sabadell to Spanish SMEs. This transaction closed in November 2006. The collateral outstanding balance has amortized to 42.6% of its initial balance. This transaction also shows an upwards trend in delinquencies, with loans in arrears exceeding 90 days representing 1.65% of the outstanding balance as of September 2009. The cumulated level of defaults (arrears exceeding 12 months, as defined in the transaction's documents) amounted to 0.67% of the initial portfolio balance. Sabadell 5's Class A3(G) notes also benefit from a guarantee by the Kingdom of Spain in the same terms as described above. As such, the rating of this class also remains credit-linked to the guarantor. SABADELL 1: Fitch Downgrades Rating on Class B Notes to 'BB' ------------------------------------------------------------ Fitch Ratings has downgraded three tranches of FTPYME TDA Sabadell 1, Fondo de Titulizacion de Activos and FTPYME TDA Sabadell 2 Fondo de Titulizacion de Activos and affirmed the remaining tranches. Both transactions are small- and medium-sized enterprise collateralized debt obligations. The rating actions resolve the Rating Watch Negative assigned in August 2009 ahead of the implementation of Fitch's revised criteria for rating European granular pools of small corporate loans. The rating actions taken are: Sabadell 1: -- EUR22,740,352 Class 1 CA (ISIN ES0339843007) affirmed at 'AAA'; Outlook Stable -- EUR18,072,932 Class 1 SA (ISIN ES0339843015) affirmed at 'AAA'; Outlook Stable; Loss Severity Rating 'LS-1' -- EUR11,100,000 Class 2 SA (ISIN ES033984023) affirmed at 'AA+'; off RWN; assigned Stable Outlook; Loss Severity Rating 'LS-1' -- EUR14,400,000 Class B (ISIN ES0339843031) downgraded to 'BB' from 'BBB'; off RWN; assigned Negative Outlook; Loss Severity Rating 'LS-1' Sabadell 2: -- EUR49,647,287 Class 1 CA (ISIN ES0339844005): affirmed at 'AAA'; Outlook Stable; -- EUR67,281,155 Class 1 SA (ISIN ES0339844013): affirmed at 'AAA'; off RWN; assigned Stable Outlook; Loss Severity Rating 'LS-1' -- EUR12,809,487 Class 2 SA (ISIN ES0339844021): downgraded to 'BBB' from 'AA+'; off RWN; assigned Negative Outlook; Loss Severity Rating 'LS-2' -- EUR8,936,851 Class 3 SA (ISIN ES0339844039): downgraded to 'BB' from 'BBB'; off RWN; assigned Negative Outlook; Loss Severity Rating 'LS-3' The senior tranches of Sabadell 1 and 2 were affirmed due to stable performance of their loan portfolios, the significant de- leveraging of the transactions' capital structures and high levels of first lien real estate collateral. On Sabadell 1 Class B the credit enhancement of 3.7% is not commensurate with an investment grade rating. In particular single obligor default risk has increased markedly as the loan portfolio amortized. The largest obligor has increased to 4.2% as of September 2009 from 0.8% at closing in June 2002. The portfolio now contains 473 performing loans totalling EUR56.6 million or 9.4% of the initial portfolio balance. Although the portfolio is concentrated in the real estate sector with 21% it benefits from 98% first-lien real-estate collateralization with a generally low weighted average LTV ratio of 25%. As of September 2009, Sabadell 1 had recognized six defaults accounting for 0.9% of the outstanding portfolio balance and loans in arrears of 90 days increased to 0.9% from 0.1% a year ago while loans in arrears of 180 days remain low at 0.04% compared to 0.1%. On Sabadell 2 the downgrade of Class 2 SA and 3 SA reflects the reduction of the available credit enhancement of these tranches due to a period of pro-rata amortization, combined with an increasing delinquency rates and obligor exposure. As of 30 September 2009, Sabadell 2 had a total of 24 loans in default, accounting for 2.6% of the outstanding portfolio balance. Loans in arrears of 90 days have reached 3%, up from 0.3% a year ago, while loans in arrears of 180 days have increased to 1% in August 2009 before decreasing to 0.3% in September 2009. The performing portfolio currently contains 962 loans totalling EUR124.5m and the transaction has benefited from a high level of de-leveraging to 24.9% of its initial balance. In addition 91.9% of loans are secured by real-estate collateral with a low weighted average LTV ratio of 30.6%. However the top obligor concentration has increased to 2% from a maximum concentration of 1.3% during the replenishment period. The ultimate interest and principal repayment of both tranches 1 CA of Sabadell 1 and Sabadell 2 are guaranteed by the Kingdom of Spain (rated 'AAA'/'F1+'/Outlook Stable'). Thus the notes are credit-linked to the rating of the Kingdom of Spain and therefore Loss Severity Ratings are not assigned. Using its Rating Criteria for European SME CLOs, Fitch has assumed the probability of default of the unrated SME loans to be commensurate with the 'B' rating category. Based on observed delinquencies and the origination process of the respective banks in Spain, the benchmark probability of default is adjusted upward or downward. SABADELL 2: Fitch Downgrades Rating on Class 3 SA Notes to 'BB' --------------------------------------------------------------- Fitch Ratings has downgraded three tranches of FTPYME TDA Sabadell 1, Fondo de Titulizacion de Activos and FTPYME TDA Sabadell 2 Fondo de Titulizacion de Activos and affirmed the remaining tranches. Both transactions are small- and medium-sized enterprise collateralized debt obligations. The rating actions resolve the Rating Watch Negative assigned in August 2009 ahead of the implementation of Fitch's revised criteria for rating European granular pools of small corporate loans. The rating actions taken are: Sabadell 1: -- EUR22,740,352 Class 1 CA (ISIN ES0339843007) affirmed at 'AAA'; Outlook Stable -- EUR18,072,932 Class 1 SA (ISIN ES0339843015) affirmed at 'AAA'; Outlook Stable; Loss Severity Rating 'LS-1' -- EUR11,100,000 Class 2 SA (ISIN ES033984023) affirmed at 'AA+'; off RWN; assigned Stable Outlook; Loss Severity Rating 'LS-1' -- EUR14,400,000 Class B (ISIN ES0339843031) downgraded to 'BB' from 'BBB'; off RWN; assigned Negative Outlook; Loss Severity Rating 'LS-1' Sabadell 2: -- EUR49,647,287 Class 1 CA (ISIN ES0339844005): affirmed at 'AAA'; Outlook Stable; -- EUR67,281,155 Class 1 SA (ISIN ES0339844013): affirmed at 'AAA'; off RWN; assigned Stable Outlook; Loss Severity Rating 'LS-1' -- EUR12,809,487 Class 2 SA (ISIN ES0339844021): downgraded to 'BBB' from 'AA+'; off RWN; assigned Negative Outlook; Loss Severity Rating 'LS-2' -- EUR8,936,851 Class 3 SA (ISIN ES0339844039): downgraded to 'BB' from 'BBB'; off RWN; assigned Negative Outlook; Loss Severity Rating 'LS-3' The senior tranches of Sabadell 1 and 2 were affirmed due to stable performance of their loan portfolios, the significant de- leveraging of the transactions' capital structures and high levels of first lien real estate collateral. On Sabadell 1 Class B the credit enhancement of 3.7% is not commensurate with an investment grade rating. In particular single obligor default risk has increased markedly as the loan portfolio amortized. The largest obligor has increased to 4.2% as of September 2009 from 0.8% at closing in June 2002. The portfolio now contains 473 performing loans totalling EUR56.6 million or 9.4% of the initial portfolio balance. Although the portfolio is concentrated in the real estate sector with 21% it benefits from 98% first-lien real-estate collateralization with a generally low weighted average LTV ratio of 25%. As of September 2009, Sabadell 1 had recognized six defaults accounting for 0.9% of the outstanding portfolio balance and loans in arrears of 90 days increased to 0.9% from 0.1% a year ago while loans in arrears of 180 days remain low at 0.04% compared to 0.1%. On Sabadell 2 the downgrade of Class 2 SA and 3 SA reflects the reduction of the available credit enhancement of these tranches due to a period of pro-rata amortization, combined with an increasing delinquency rates and obligor exposure. As of 30 September 2009, Sabadell 2 had a total of 24 loans in default, accounting for 2.6% of the outstanding portfolio balance. Loans in arrears of 90 days have reached 3%, up from 0.3% a year ago, while loans in arrears of 180 days have increased to 1% in August 2009 before decreasing to 0.3% in September 2009. The performing portfolio currently contains 962 loans totalling EUR124.5m and the transaction has benefited from a high level of de-leveraging to 24.9% of its initial balance. In addition 91.9% of loans are secured by real-estate collateral with a low weighted average LTV ratio of 30.6%. However the top obligor concentration has increased to 2% from a maximum concentration of 1.3% during the replenishment period. The ultimate interest and principal repayment of both tranches 1 CA of Sabadell 1 and Sabadell 2 are guaranteed by the Kingdom of Spain (rated 'AAA'/'F1+'/Outlook Stable'). Thus the notes are credit-linked to the rating of the Kingdom of Spain and therefore Loss Severity Ratings are not assigned. Using its Rating Criteria for European SME CLOs, Fitch has assumed the probability of default of the unrated SME loans to be commensurate with the 'B' rating category. Based on observed delinquencies and the origination process of the respective banks in Spain, the benchmark probability of default is adjusted upward or downward. ===================== S W I T Z E R L A N D ===================== ATF GMBH: Claims Filing Deadline is November 20 ----------------------------------------------- Creditors of ATF GmbH are requested to file their proofs of claim by November 20, 2009, to: BDO Visura, liquidator Kernserstrasse 31 6060 Sarnen Switzerland The company is currently undergoing liquidation in Lungern. The decision about liquidation was accepted at an extraordinary shareholders' meeting on August 19, 2009. CU ELECTRONICS: Claims Filing Deadline is November 23 ----------------------------------------------------- Creditors of CU Electronics AG are requested to file their proofs of claim by November 23, 2009, to: Mattias Johnson Grafenaustrasse 5 6304 Zug Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary general meeting held on July 23, 2009. FLEXSYS AG: Claims Filing Deadline is November 20 ------------------------------------------------- Creditors of Flexsys AG are requested to file their proofs of claim by November 20, 2009, to: Walter H. Boss, liquidator Mail box: 865 8034 Zurich Switzerland The company is currently undergoing liquidation in Zug. The decision about liquidation was accepted at an extraordinary general meeting held on September 29, 2009. GASTEST AG: Claims Filing Deadline is November 20 ------------------------------------------------- Creditors of Gastest AG are requested to file their proofs of claim by November 20, 2009, to: Mandataria Treuhand AG Bahnhofstrasse 23 6300 Zug Switzerland The company is currently undergoing liquidation in Basel. The decision about liquidation was accepted at an extraordinary general meeting held on October 5, 2009. MOTIVATIONSSYSTEME: Claims Filing Deadline is November 23 --------------------------------------------------------- Creditors of Motivationssysteme GmbH are requested to file their proofs of claim by November 23, 2009, to: Stefan Heim Strick 9032 Engelburg Switzerland The company is currently undergoing liquidation in Rorschach. The decision about liquidation was accepted at a shareholders' meeting on September 16, 2009. MPI MEIER: Claims Filing Deadline is November 20 ------------------------------------------------ Creditors of Mpi Meier und Partner Informatik AG are requested to file their proofs of claim by November 20, 2009, to: Christian Meier Liquidator Asylstasse 90 8032 Zurich Switzerland The company is currently undergoing liquidation in Waltenschwil. The decision about liquidation was accepted at a general meeting held on September 22, 2009. PLS BETEILIGUNG: Claims Filing Deadline is November 20 ------------------------------------------------------ Creditors of PLS Beteiligung AG are requested to file their proofs of claim by November 20, 2009, to: Linda Oettli Liquidator Schaettihuegelstrasse 11 8863 Buttikon Switzerland The company is currently undergoing liquidation in Freienbach SZ. The decision about liquidation was accepted at an extraordinary general meeting held on August 6, 2009. RESTAURANT ROESSLI: Claims Filing Deadline is November 20 --------------------------------------------------------- Creditors of Restaurant Roessli AG are requested to file their proofs of claim by November 20, 2009, to: Schmutz-Moeri Albert and Gertrud Liquidators Rumiweg 170 4900 Langenthal Switzerland The company is currently undergoing liquidation in Langenthal. The decision about liquidation was accepted at a general meeting held on July 21, 2009. TICOR INTERNATIONAL: Claims Filing Deadline is November 23 ---------------------------------------------------------- Creditors of Ticor International AG are requested to file their proofs of claim by November 23, 2009, to: Ticor International AG Hallwilerweg 2 6003 Luzern Switzerland The company is currently undergoing liquidation in Luzern. The decision about liquidation was accepted at a general meeting held on October 1, 2009. VILAS CREATIONS: Claims Filing Deadline is November 20 ------------------------------------------------------ Creditors of Vilas Creations GmbH are requested to file their proofs of claim by November 20, 2009, to: Vivian Streib-Ogueri Liquidator Neuhofstrasse 18 8708 Maennedorf Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting on September 9, 2009. =========== T U R K E Y =========== BANKPOZITIF KREDI: Fitch Affirms Individual Rating at 'D' --------------------------------------------------------- Fitch Ratings has placed 15 Turkish banks' and financial institutions' Long-term foreign currency Issuer Default Ratings on Rating Watch Positive and 14 Turkish banks' and financial institutions' Long-term local currency IDRs on RWP. This follows similar action taken on the Republic of Turkey's LT FC and LC IDRs. At the same time, the agency affirmed the Short-term LC and FC IDRs of the banks in question, with the exception of the ST LC IDR of Turkiye Sinai Kalkinma Bankasi A.S. which has been placed on RWP to reflect an expected improvement in its parent's (Turkiye Is Bankasi A.S.) ability to support it if and when this bank's IDRs are upgraded. The agency has also affirmed the National LT ratings and the Individual ratings of the entities concerned. Fitch has also reviewed the Support ratings and Support Rating Floors of the entities concerned and either affirmed these or placed them on RWP, on a case-by-case basis. A complete list of ratings is reflected below. The IDRs of the banks in the group below are placed on RWP due to the Turkish government's expected improved ability to support state-owned or state-guaranteed institutions, as indicated by the RWP on the sovereign's IDRs. T. C. ZIRAAT BANKASI A.S.: -- LTFC IDR: 'BB-' placed on RWP -- LTLC IDR: 'BB' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR : affirmed at 'B' -- National LT Rating: affirmed at 'AA+(tur)' Stable Outlook -- Individual rating: affirmed at 'C/D' -- Support rating: affirmed at '3' -- Support Rating Floor: 'BB-' placed on RWP TURKIYE HALK BANKASI A.S: -- LTFC IDR: 'BB-' placed on RWP -- LTLC IDR: 'BB' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'B' -- National LT Rating: affirmed at 'AA+(tur)' Stable Outlook -- Individual rating: affirmed at 'C/D' -- Support rating: affirmed at '3' -- Support Rating Floor: 'BB-' placed on RWP TURKIYE KALKINMA BANKASI A.S: -- LTFC IDR: 'BB-' placed on RWP -- LTLC IDR: 'BB' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'B' -- National LT rating: affirmed at 'AA+(tur)' Stable Outlook -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '3' -- Support Rating Floor: 'BB-' placed on RWP The LT IDRs of these group of banks are driven by potential support from highly-rated foreign shareholders. The LT FC IDRs of these banks are constrained by Turkey's current Country Ceiling, currently on RWP. If Turkey's Country Ceiling is upgraded, the LT FC IDRs of these banks should be upgraded. The LT LC IDRs of these banks are currently rated two notches above the sovereign's LT LC IDR, currently on RWP. If and when Turkey's LT LC IDR is upgraded, an upgrade of the LT LC IDRs of these banks may follow. YAPI VE KREDI BANKASI A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C/D' -- Support Rating: affirmed at '3' FINANSBANK A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: affirmed at '3' DENIZBANK A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: affirmed at '3' TURK EKONOMI BANKASI A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C/D' -- Support Rating: affirmed at '3' BANKPOZITIF KREDI VE KALKINMA BANKASI A.S: -- LTFC IDR: 'BB', placed on RWP -- LTLC IDR: affirmed at 'BBB-', Stable Outlook -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '3' -- Senior unsecured debt: 'BB' placed on RWP -- Subordinated debt: 'BB-' placed on RWP The LT IDRs of the banks below are driven by their intrinsic financial strength. The LT FC IDRs are constrained by Turkey's current Country Ceiling, currently on RWP. If Turkey's Country Ceiling is upgraded, an upgrade of the LT FC IDRs of these banks should follow. The LT LC IDRs of these banks are currently rated two notches above the sovereign's LT LC IDR, currently on RWP. If and when Turkey's LT LC IDR is upgraded, an upgrade of these banks' LT LC IDR may follow. They are systemically important banks in Turkey and Fitch considers that, in case of need, they would receive support from the Turkish state. The Turkish sovereign's improving capacity to provide such support, as illustrated by the RWP on its IDRs, should result in an upgrading of their Support ratings and Support Rating Floors if and when action is taken on the sovereign's LT FC IDRs. TURKIYE IS BANKASI A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: '4' placed on RWP -- Support Rating Floor: 'B+' placed on RWP TURKIYE GARANTI BANKASI A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: '4' placed on RWP -- Support Rating Floor: 'B+' placed on RWP AKBANK T.A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: '4' placed on RWP -- Support Rating Floor: 'B+' placed on RWP The RWP on these bank's IDRs reflects similar action taken on its parent's (Turkiye Is Bankasi A.S.) ratings. As the parent's ability to support its subsidiary improves, the IDRs of Turkiye Sinai Kalkinma Bankasi should also improve. TURKIYE SINAI KALKINMA BANKASI A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR 'BB+' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: 'B' placed on RWP -- National LT rating: affirmed at 'AA+(tur)' Stable Outlook -- Individual rating: affirmed at 'C/D' -- Support rating: affirmed at '3' The IDRs of the entities below are equalized with those of their parents, reflecting integration and committed support, and therefore move in tandem with rating action taken on the parents' ratings. GARANTI FINANSAL KIRALAMA A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT Rating: affirmed at 'AAA(tur)' Stable Outlook -- Support rating: affirmed at '3' IS FINANSAL KIRALAMA A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT Rating: affirmed at 'AAA(tur)' Stable Outlook -- Support rating: affirmed at '3' GARANTI FAKTORING HIZMETLERI A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT Rating: affirmed at 'AAA(tur)' Stable Outlook -- Support rating: affirmed at '3' 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. TURKIYE KALKINMA: Fitch Affirms Individual Rating at 'D' -------------------------------------------------------- Fitch Ratings has placed 15 Turkish banks' and financial institutions' Long-term foreign currency Issuer Default Ratings on Rating Watch Positive and 14 Turkish banks' and financial institutions' Long-term local currency IDRs on RWP. This follows similar action taken on the Republic of Turkey's LT FC and LC IDRs. At the same time, the agency affirmed the Short-term LC and FC IDRs of the banks in question, with the exception of the ST LC IDR of Turkiye Sinai Kalkinma Bankasi A.S. which has been placed on RWP to reflect an expected improvement in its parent's (Turkiye Is Bankasi A.S.) ability to support it if and when this bank's IDRs are upgraded. The agency has also affirmed the National LT ratings and the Individual ratings of the entities concerned. Fitch has also reviewed the Support ratings and Support Rating Floors of the entities concerned and either affirmed these or placed them on RWP, on a case-by-case basis. A complete list of ratings is reflected below. The IDRs of the banks in the group below are placed on RWP due to the Turkish government's expected improved ability to support state-owned or state-guaranteed institutions, as indicated by the RWP on the sovereign's IDRs. T. C. ZIRAAT BANKASI A.S.: -- LTFC IDR: 'BB-' placed on RWP -- LTLC IDR: 'BB' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR : affirmed at 'B' -- National LT Rating: affirmed at 'AA+(tur)' Stable Outlook -- Individual rating: affirmed at 'C/D' -- Support rating: affirmed at '3' -- Support Rating Floor: 'BB-' placed on RWP TURKIYE HALK BANKASI A.S: -- LTFC IDR: 'BB-' placed on RWP -- LTLC IDR: 'BB' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'B' -- National LT Rating: affirmed at 'AA+(tur)' Stable Outlook -- Individual rating: affirmed at 'C/D' -- Support rating: affirmed at '3' -- Support Rating Floor: 'BB-' placed on RWP TURKIYE KALKINMA BANKASI A.S: -- LTFC IDR: 'BB-' placed on RWP -- LTLC IDR: 'BB' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'B' -- National LT rating: affirmed at 'AA+(tur)' Stable Outlook -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '3' -- Support Rating Floor: 'BB-' placed on RWP The LT IDRs of these group of banks are driven by potential support from highly-rated foreign shareholders. The LT FC IDRs of these banks are constrained by Turkey's current Country Ceiling, currently on RWP. If Turkey's Country Ceiling is upgraded, the LT FC IDRs of these banks should be upgraded. The LT LC IDRs of these banks are currently rated two notches above the sovereign's LT LC IDR, currently on RWP. If and when Turkey's LT LC IDR is upgraded, an upgrade of the LT LC IDRs of these banks may follow. YAPI VE KREDI BANKASI A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C/D' -- Support Rating: affirmed at '3' FINANSBANK A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: affirmed at '3' DENIZBANK A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: affirmed at '3' TURK EKONOMI BANKASI A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- ST FC IDR: affirmed at 'B' -- ST LC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C/D' -- Support Rating: affirmed at '3' BANKPOZITIF KREDI VE KALKINMA BANKASI A.S: -- LTFC IDR: 'BB', placed on RWP -- LTLC IDR: affirmed at 'BBB-', Stable Outlook -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'D' -- Support Rating: affirmed at '3' -- Senior unsecured debt: 'BB' placed on RWP -- Subordinated debt: 'BB-' placed on RWP The LT IDRs of the banks below are driven by their intrinsic financial strength. The LT FC IDRs are constrained by Turkey's current Country Ceiling, currently on RWP. If Turkey's Country Ceiling is upgraded, an upgrade of the LT FC IDRs of these banks should follow. The LT LC IDRs of these banks are currently rated two notches above the sovereign's LT LC IDR, currently on RWP. If and when Turkey's LT LC IDR is upgraded, an upgrade of these banks' LT LC IDR may follow. They are systemically important banks in Turkey and Fitch considers that, in case of need, they would receive support from the Turkish state. The Turkish sovereign's improving capacity to provide such support, as illustrated by the RWP on its IDRs, should result in an upgrading of their Support ratings and Support Rating Floors if and when action is taken on the sovereign's LT FC IDRs. TURKIYE IS BANKASI A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: '4' placed on RWP -- Support Rating Floor: 'B+' placed on RWP TURKIYE GARANTI BANKASI A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: '4' placed on RWP -- Support Rating Floor: 'B+' placed on RWP AKBANK T.A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT rating: affirmed at 'AAA(tur)' Stable Outlook -- Individual Rating: affirmed at 'C' -- Support Rating: '4' placed on RWP -- Support Rating Floor: 'B+' placed on RWP The RWP on these bank's IDRs reflects similar action taken on its parent's (Turkiye Is Bankasi A.S.) ratings. As the parent's ability to support its subsidiary improves, the IDRs of Turkiye Sinai Kalkinma Bankasi should also improve. TURKIYE SINAI KALKINMA BANKASI A.S: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR 'BB+' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: 'B' placed on RWP -- National LT rating: affirmed at 'AA+(tur)' Stable Outlook -- Individual rating: affirmed at 'C/D' -- Support rating: affirmed at '3' The IDRs of the entities below are equalized with those of their parents, reflecting integration and committed support, and therefore move in tandem with rating action taken on the parents' ratings. GARANTI FINANSAL KIRALAMA A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT Rating: affirmed at 'AAA(tur)' Stable Outlook -- Support rating: affirmed at '3' IS FINANSAL KIRALAMA A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT Rating: affirmed at 'AAA(tur)' Stable Outlook -- Support rating: affirmed at '3' GARANTI FAKTORING HIZMETLERI A.S.: -- LTFC IDR: 'BB' placed on RWP -- LTLC IDR: 'BBB-' placed on RWP -- STFC IDR: affirmed at 'B' -- STLC IDR: affirmed at 'F3' -- National LT Rating: affirmed at 'AAA(tur)' Stable Outlook -- Support rating: affirmed at '3' 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. TURKLAND BANK: Fitch Affirms Individual Rating at 'D' ----------------------------------------------------- Fitch Ratings has placed Turkland Bank A.S.'s Long-term foreign currency Issuer Default Rating of 'BB' and Long-term local currency IDR of 'BBB-' on Rating Watch Positive. This follows similar action taken on the Republic of Turkey's Long-term local and foreign currency IDRs. At the same time Fitch has affirmed T-Bank's other ratings at Short-term foreign currency IDR 'B', Short-term local currency IDR 'F3', Individual 'D', Support '3' and National Long-term 'AAA(tur)' with Stable Outlook. The Long-term IDRs, Short-term local currency IDR, National Long- term and Support ratings of T-Bank are driven by a high propensity of support from its 50% ultimate owner Arab Bank Group ('A-'/ Stable/'F1'). However, this support is constrained by Turkey's Country Ceiling, 'BB', currently on RWP. T-Bank's Long-term foreign currency IDR is thus constrained by Turkey's Country Ceiling; if the Country Ceiling is upgraded, the Long-term foreign currency IDR of T-Bank would also be upgraded. The Long-term local currency IDR of T-Bank is currently two notches above the sovereign's Long-term local currency IDR, currently on RWP. If and when Turkey's Long-term local currency IDR is upgraded, an upgrade of the Long-term local currency IDR of T-Bank may follow. T-Bank is a small commercial bank providing corporate, commercial and, SME banking services and offers retail banking as a complementary business. The bank is 50% owned by Arab Bank plc (ultimately owned by Arab Bank Group), 41% by BankMed Sal and 9% by Mehmet Nazif Gunal. 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. =========================== U N I T E D K I N G D O M =========================== BRANTON BRIDGE: Sold to Calibre; More Than 30 Jobs Saved -------------------------------------------------------- Branton Bridge Solicitors, the specialist personal injury solicitors, entered into administration on October 30, 2009. Greg Mullarkey, Chief Executive at Blue Gate Capital Limited, and David Thornhill, Client Partner at Vantis Business Recovery Services (BRS), a division of Vantis, the UK accounting, tax and business advisory group, have been appointed as Joint Administrators. Shortly after their appointment the Joint Administrators disposed of the business and assets of Branton Bridge Solicitors to Calibre Solicitors Limited. Under the agreement, the staff of Branton Bridge Solicitors was transferred to Calibre, a move which has saved more than 30 jobs. Calibre will trade under the name Legal Gateway Solicitors. At the date of appointment, Branton Bridge Solicitors had a portfolio of some 2,200 cases under its control which will now be handled by Calibre, trading as Legal Gateway Solicitors, subject to the agreement of the clients concerned. Mr. Thornhill, Client Partner at Vantis BRS, said: "We are delighted that we have been able to dispose of the business and assets of Branton Bridge and, by doing so, secure the jobs of the members of staff employed by the firm. We are also confident that the clients of the firm will receive proper continuity of care as a result of the transfer, although it will be up to individual clients to determine whether their case is dealt with by Calibre, trading as Legal Gateway Solicitors. We hope that by completing this deal so quickly the realizations from assets will be increased -- allowing us to maximize the return to the creditors." DEVON CIDER: Sold to Aston Manor; 50 Jobs Saved ---------------------------------------------- Devon Cider Company Limited, the Tiverton-based drinks manufacturer of own label and branded label ciders, has successfully come out of administration, saving 50 jobs and the future of the business. Geoff Rowley and Nick O'Reilly, Client Partners from Vantis Business Recovery Services, a division of Vantis, the UK accounting, tax and business advisory group, were appointed as Joint Administrators on September 30, 2009. An offer was accepted for the business, property and assets of the company from Aston Manor Brewery Company Limited of Birmingham, the UK's largest independent cider company with 26 years experience in the industry. Commenting on the case, Mr. Rowley said: "We were able to develop a strategy for sale to keep Devon Cider open for trading and without having to make any redundancies." Peter Ellis, Managing Director of Aston Manor, also added: "We were delighted to acquire Devon Cider to continue the art of cider making in Tiverton, Devon." DONCASTERS GROUP: DIC Injects GBP53 Mln Cash to Avert Debt Breach ----------------------------------------------------------------- Helen Power at The Times reports that Dubai Investment Capital has injected GBP53 million into Doncasters Group Ltd. to prevent a breach of its banking covenants. According to the Times, the Gulf sovereign-wealth fund has come to an agreement with its banks to put the cash into Sheffield-based Doncasters, which employs nearly 5,000, in return for an agreement with lenders to relax its covenants. Lenders had asked for up to GBP200 million to be put into Doncasters, which makes components for Rolls-Royce, the Times notes. Doncasters -- http://www.doncasters.com/-- is a manufacturing services provider for the gas and steam turbine industries. The company makes airfoils, casings, rings, and exhaust and combustion components, and other engineered products for use in aircraft engines. Other products include automotive turbochargers, and dies and tooling for the forging and casting industry. Doncasters also offers electromagnetic shielding services. It also manufactures precision components for equipment and vehicles used by the US armed forces. The company serves such customers as Boeing, GE Aircraft Engines, and Rolls-Royce. NIPSON DIGITAL: May Seek Administration if Repayment Talks Fail --------------------------------------------------------------- ShareCast reports that Nipson Digital Printing Systems plc said it may go into administration if it can't agree on the repayment of a EUR2 million loan. "If agreement cannot be reached then as referred to in the announcement of 15 October 2009, the company will need to consider a Company Voluntary Arrangement; but will also consider other options including administration," ShareCast quoted the group a saying a short statement. Nipson Digital Printing Systems PLC -- http://www.nipson.com/-- is a United Kingdom-based company. The Company, along with its subsidiaries, is engaged in the manufacture and distribution of digital printing equipment, related consumables and spare parts, maintenance and service. It has operations in France, United States, Germany and the United Kingdom. Its subsidiaries include Nipson SAS, which is engaged in the manufacture of printers, and distribution and service of printers, consumables and spares; Nipson America Inc, which is engaged in the distribution and service of printers, consumables and spares, and Nipson Italia Srl, which is engaged in the distribution of printers, consumables and spares. RBS CAPITAL: S&P Corrects Error on Subordinated Guarantor of Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services corrected an error relating to the subordinated guarantor of perpetual capital instruments issued by RBS Capital Funding Trust V, RBS Capital Funding Trust VI, and RBS Capital Funding Trust VII. Following S&P's rating actions on The Royal Bank of Scotland Group PLC (A/Stable/A-1) and its hybrid capital issues on Nov. 3, 2009, the subordinated guarantor of the issues from the above entities was inadvertently misidentified due to an administrative error. S&P has now rectified this error and the subordinated guarantor is listed as ABN AMRO Holding N.V. (not rated). The ratings on the perpetual capital instruments issued by the trusts are unaffected. Ratings List RBS Capital Funding Trust V* US$1.25 bil 5.9% callable perp non-cum gtd trust pfd secs ISIN: US74928K2087 B/Watch Dev RBS Capital Funding Trust VI* US$200 mil 6.25% non-cum trust pfd secs callable ISIN: US74928M2044 B/Watch Dev RBS Capital Funding Trust VII* US$1.8 bil 6.08% non-cum gtd trust pfd secs callable ISIN: US74928P2074 B/Watch Dev * Guaranteed on a subordinated basis by ABN AMRO Holding N.V. ROYAL BANK: Fitch Puts 'E' Individual Rating on Positive Watch -------------------------------------------------------------- Fitch Ratings has placed The Royal Bank of Scotland Group's (RBS Group) and The Royal Bank of Scotland's Individual Ratings of 'E' on Rating Watch Positive. Their ratings have been affirmed at Long-term Issuer Default 'AA-', Short-term IDR 'F1+', Support '1' and Support Rating Floor AA-'. The Outlooks on the Long-term IDRs are Stable. The agency has also affirmed all the ratings of RBS Group's other subsidiaries. Certain group hybrid securities have been downgraded. For a full list of ratings, please refer to the end of this rating action comment. The rating actions follow the recent announcement of an additional GBP25.5 billion capital injection by end-2009 from the UK government, confirmation of the group's participation in the UK government's asset protection scheme and the divestitures required by the European Commission for approving state aid. The affirmation of the Long- and Short-term IDRs, Support Rating Floors and Support Ratings reflect the extremely high level of support for the group by the UK government, whose economic interest in RBS Group rises to 84.4% after it makes a further capital injection under the APS. RBS Group's reliance on external support is reflected in its current 'E' Individual Rating. The RWP reflects Fitch's views that the group will be better-positioned to pursue its restructuring and de-leveraging strategy in the still tough operating environment given a material boost to its core capital position. However, the group faces a complicated task of implementing a refocused, lower-risk, strategy as well as restructuring the business in accordance with the EC's requirements. Although the business disposals required by the EC will not materially erode RBS Group's strong domestic UK franchises, in Fitch's view, the divestments and competitive constraints on its global banking and markets division increase the already high execution risk for the group to achieve its strategic goals. Nevertheless, de-risking the balance sheet and stabilizing or improving asset quality could benefit its Individual Rating. Fitch views positively the GBP8bn contingent capital facility provided by the UK government as it provides an additional capital cushion for unexpected impairment charges should economic conditions turn more severe. The RWP should be resolved in the near-term, once more details on the APS have been revealed and the agency has completed its assessment of the group's changing financial and risk profile and its ability to achieve its strategic and financial goals. The rating actions in respect of the group's upper tier 2 and tier 1 securities follow confirmation that the EC is to require that RBS Group does not make discretionary payments of coupons or dividends on hybrid capital securities. Fitch has downgraded and removed from Rating Watch Negative debt securities where payments appear discretionary. All other upper tier 2 and tier 1 securities appear to have "must pay" features and remain on RWE. Fitch has maintained the RWN on certain lower tier 2 securities where coupon deferral is possible, but the agency believes the risk to be limited. Resolution of the Watches will take place once the RWP on the Individual Rating is resolved and once there is greater certainty over the extent and timing of the deferral requirements and the securities affected. The ratings actions are: The Royal Bank of Scotland Group plc (RBS Group) -- Long-term IDR: affirmed at 'AA-'; Outlook Stable -- Senior unsecured debt: affirmed at 'AA-' -- Short-term IDR: affirmed at 'F1+' -- Commercial paper: affirmed at 'F1+' -- Individual rating: 'E'; placed on RWP -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'AA-' The Royal Bank of Scotland plc (RBS) -- Long-term IDR: affirmed at 'AA-'; Outlook Stable -- Senior unsecured debt: affirmed at 'AA-' -- Short-term IDR: affirmed at 'F1+' -- Commercial paper: affirmed at 'F1+'; -- Individual rating: 'E'; placed on RWP -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'AA-' -- Guaranteed senior long-term debt affirmed at 'AAA' -- Guaranteed senior short-term debt affirmed at 'F1+' National Westminster Bank plc (NatWest) -- Long-term IDR: affirmed at 'AA-'; Outlook Stable -- Senior unsecured debt: affirmed at 'AA-' -- Short-term IDR: affirmed at 'F1+' -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'AA-' Ulster Bank Ltd -- Long-term IDR: affirmed at 'A+'; Outlook Stable -- Short-term IDR: affirmed at 'F1+' -- Individual rating: affirmed at 'E' -- Support rating: affirmed at '1' Ulster Bank Finance plc: -- Commercial paper: affirmed at 'F1+' Ulster Bank Ireland Limited: -- Long-term IDR: affirmed at 'A+'; Outlook Stable -- Senior unsecured debt: affirmed at 'A+' -- Short-term IDR: affirmed at 'F1+' -- Individual rating: affirmed at 'E' -- Support rating: affirmed at '1' First Active Plc: -- Long-term IDR: affirmed at 'A+'; Outlook Stable -- Senior unsecured debt: affirmed at 'A+' -- Short-term IDR: affirmed at 'F1+' -- Commercial paper: affirmed at 'F1+' -- Individual rating: affirmed at 'E' -- Support rating: affirmed at '1' RBS Holdings USA Inc. (formerly Greenwich Capital Holdings Inc.): -- US commercial paper: affirmed at 'F1+' Citizens Financial Group, Inc.: -- Long-term IDR: affirmed at 'A+'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Individual rating: 'B/C'; remains on RWN -- Support rating: affirmed at '1' RBS Citizens, NA (formerly Citizens Bank, NA): -- Long-term IDR: affirmed at 'A+'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Long-term deposits: affirmed at 'AA-' -- Short-term deposits: affirmed at 'F1+' -- Senior unsecured debt: affirmed at 'A+' -- Subordinated debt: affirmed at 'A' -- Individual rating: 'B/C'; remains on RWN -- Support rating: affirmed at '1' Citizens Bank of Pennsylvania: -- Long-term IDR: affirmed at 'A+'; Outlook Stable -- Short-term IDR: affirmed at 'F1' -- Long-term deposits: affirmed at 'AA-' -- Short-term deposits: affirmed at 'F1+' -- Individual rating: 'B/C'; remains on RWN -- Support rating: affirmed at '1' ABN AMRO Bank NV: -- Long-term IDR: affirmed at 'AA-'; Outlook Stable -- Senior unsecured debt: affirmed at 'AA-' -- Subordinated debt: affirmed at 'A+' -- Upper tier 2 instruments: 'B+'; remain on RWN -- Tier 1 instruments: 'B'; remain on RWN -- Short-term IDR: affirmed at 'F1+' -- Commercial paper and short-term debt: affirmed at 'F1+' -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A-' -- Guaranteed senior long-term (AUD) debt affirmed at 'AAA' -- Guaranteed senior short-term (EUR) debt affirmed at 'F1+' -- Mortgage covered bonds: remain unaffected by the action Actions on the tier 1, upper tier 2 and lower tier 2 debt securities are: The Royal Bank of Scotland Group plc (RBS Group) -- Preference shares: 'B'; remain on RWE -- US$300m non-cumulative preference shares, Series H (US7800978790) -- US$1bn non-cumulative preference shares, Series 1 (US780097AE13) -- GBP 200m non-cumulative preference shares, Series 1 (XS0121856859) -- Innovative tier 1: 'B'; remain on RWE -- US$1.2bn regulatory tier 1 securities (US780097AH44) All other rated preference shares and tier 1 securities downgraded to 'CC' from 'B'; RWN removed. Dated subordinated bonds: 'A+'; remain on RWN -- US$350m subordinated bonds due 2018 (US780097AM39) -- US$750m subordinated bonds due 2014 (US780097AN12) -- US$1bn subordinated bonds due 2014 (US780097AL55) -- US$300m subordinated bonds due 2011 (US780097AB73) -- US$675m subordinated bonds due 2015 (US780097AP69) All other subordinated bonds rated 'A+' are affirmed The Royal Bank of Scotland plc (RBS) -- Upper tier 2 securities: 'B+'; remain on RWE -- GBP175m undated subordinated notes (XS0116447599) -- GBP400m undated subordinated callable step-up notes (XS0247645160) -- GBP350m fixed rate undated subordinated notes (XS0137784426) -- EUR500m undated subordinated notes (XS0195230635) -- EUR1bn undated subordinated notes (XS0195231526) -- GBP500m undated subordinated notes (XS0193721544) -- GBP500m undated subordinated notes (XS0164828385) -- CAD700m undated subordinated callable step-up notes (CA780097AR28) -- GBP200m undated subordinated bonds (XS0045071932) -- GBP600m undated subordinated notes (XS0206633082) -- GBP500m undated subordinated notes (XS0144810529) -- GBP900m undated subordinated notes (XS0154144132) -- GBP500m undated subordinated notes (XS0138939854) -- JPY25bn unsubordinated notes (XS0203781660) -- Dated subordinated bonds: 'A+'; remain on RWN -- EUR1bn dated subordinated bond due 2021 (XS0201065496) All other subordinated bonds rated 'A+' are affirmed National Westminster Bank plc (NatWest) -- Upper tier 2 securities: 'B+'; remain on RWE -- EUR100m undated subordinated notes (XS0102480786) -- EUR400m undated subordinated notes (XS0102480869) -- GBP200m undated subordinated step-up notes (XS0102493680) -- GBP325m undated subordinated step-up notes (XS0102493508) -- US$500m primary capital floating rate notes (Series 'A') (GB0006267073) -- US$500m primary capital floating rate notes (Series 'B') (GB0006267180) -- US$500m primary capital FRNs (Series 'C') (LU0001547172) -- Subordinated debt affirmed at 'A+' * Fitch does not rate all capital issued by RBS Group, RBS, NatWest and ABN AMRO Bank. =================== U Z B E K I S T A N =================== ALOKABANK: Moody's Maintains Review for Possible Downgrade ---------------------------------------------------------- Moody's Investors Service said that it is maintaining its review of the long-term local currency deposit ratings of three Uzbek banks, National Bank of Uzbekistan, Ipoteka Bank and Alokabank. On May 21, 2009, Moody's placed these ratings on review for possible downgrade in order to assess the country's capacity to support its banking system in the midst of the global economic and financial crisis. The rating agency believes that, in case of need, the Uzbek government is likely to support a number of large local banks deemed to be systemically important, as evidenced by a number of legislative and regulatory actions recently taken by the government. However, as the financial crisis wears on, the capacity of the country and its central bank to support the nation's banks may become somewhat constrained. As such, Moody's is in the process of reassessing the probability of systemic support. This element has a direct impact on the deposit ratings of the three Uzbek banks noted above. Factors that the rating agency is considering in its reassessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to government political patterns and priorities. These ratings remain on review for possible downgrade: * National Bank of Uzbekistan -- Long-term global local currency deposit rating of Ba3 * Ipoteka Bank -- Long-term GLC deposit rating of B1 * Alokabank -- Long-term GLC deposit rating of B1 The rating agency expects to conclude the review early next year. All other ratings of these three banks and other bank ratings in Uzbekistan are unaffected by Moody's reassessment of the probability of systemic support. Moody's previous rating action on the National Bank of Uzbekistan, Ipoteka Bank and Alokabank, was on May 21, 2009 when Moody's placed their local currency deposit ratings on review for possible downgrade. IPOTEKA BANK: Moody's Maintains Review for Possible Downgrade ------------------------------------------------------------- Moody's Investors Service said that it is maintaining its review of the long-term local currency deposit ratings of three Uzbek banks, National Bank of Uzbekistan, Ipoteka Bank and Alokabank. On May 21, 2009, Moody's placed these ratings on review for possible downgrade in order to assess the country's capacity to support its banking system in the midst of the global economic and financial crisis. The rating agency believes that, in case of need, the Uzbek government is likely to support a number of large local banks deemed to be systemically important, as evidenced by a number of legislative and regulatory actions recently taken by the government. However, as the financial crisis wears on, the capacity of the country and its central bank to support the nation's banks may become somewhat constrained. As such, Moody's is in the process of reassessing the probability of systemic support. This element has a direct impact on the deposit ratings of the three Uzbek banks noted above. Factors that the rating agency is considering in its reassessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to government political patterns and priorities. These ratings remain on review for possible downgrade: * National Bank of Uzbekistan -- Long-term global local currency deposit rating of Ba3 * Ipoteka Bank -- Long-term GLC deposit rating of B1 * Alokabank -- Long-term GLC deposit rating of B1 The rating agency expects to conclude the review early next year. All other ratings of these three banks and other bank ratings in Uzbekistan are unaffected by Moody's reassessment of the probability of systemic support. Moody's previous rating action on the National Bank of Uzbekistan, Ipoteka Bank and Alokabank, was on May 21, 2009 when Moody's placed their local currency deposit ratings on review for possible downgrade. NATIONAL BANK: Moody's Maintains Review for Possible Downgrade -------------------------------------------------------------- Moody's Investors Service said that it is maintaining its review of the long-term local currency deposit ratings of three Uzbek banks, National Bank of Uzbekistan, Ipoteka Bank and Alokabank. On May 21, 2009, Moody's placed these ratings on review for possible downgrade in order to assess the country's capacity to support its banking system in the midst of the global economic and financial crisis. The rating agency believes that, in case of need, the Uzbek government is likely to support a number of large local banks deemed to be systemically important, as evidenced by a number of legislative and regulatory actions recently taken by the government. However, as the financial crisis wears on, the capacity of the country and its central bank to support the nation's banks may become somewhat constrained. As such, Moody's is in the process of reassessing the probability of systemic support. This element has a direct impact on the deposit ratings of the three Uzbek banks noted above. Factors that the rating agency is considering in its reassessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to government political patterns and priorities. These ratings remain on review for possible downgrade: * National Bank of Uzbekistan -- Long-term global local currency deposit rating of Ba3 * Ipoteka Bank -- Long-term GLC deposit rating of B1 * Alokabank -- Long-term GLC deposit rating of B1 The rating agency expects to conclude the review early next year. All other ratings of these three banks and other bank ratings in Uzbekistan are unaffected by Moody's reassessment of the probability of systemic support. Moody's previous rating action on the National Bank of Uzbekistan, Ipoteka Bank and Alokabank, was on May 21, 2009 when Moody's placed their local currency deposit ratings on review for possible downgrade. =============== X X X X X X X X =============== * BOND PRICING: For the Week November 2 to November 6, 2009 ----------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- INVESTKREDIT AG 7.000 3/6/2021 EUR 72.89 KOMMUNALKREDIT 0.500 3/15/2019 CAD 63.46 OESTER VOLKSBK 4.170 7/29/2015 EUR 66.13 OESTER VOLKSBK 5.450 8/2/2019 EUR 67.38 OESTER VOLKSBK 4.810 7/29/2025 EUR 56.75 OESTER VOLKSBK 5.270 2/8/2027 EUR 93.78 SAPPI PAPIER HOL 6.750 6/15/2012 USD 97.50 SAPPI PAPIER HOL 7.500 6/15/2032 USD 48.13 SAPPI PAPIER HOL 7.500 6/15/2032 USD 48.13 BELGIUM ------- FORTIS BANK 8.750 12/7/2010 EUR 21.44 BULGARIA -------- PETROL AD-SOFIA 8.375 10/26/2011 EUR 60.07 CZECH REPUBLIC -------------- CZECH REPUBLIC 2.750 1/16/2036 JPY 70.96 FINLAND ------- MUNI FINANCE PLC 1.000 11/21/2016 NZD 67.93 MUNI FINANCE PLC 1.000 10/30/2017 AUD 61.03 MUNI FINANCE PLC 1.000 2/27/2018 AUD 59.88 MUNI FINANCE PLC 0.500 9/24/2020 CAD 58.24 MUNI FINANCE PLC 0.500 3/17/2025 CAD 44.37 MUNI FINANCE PLC 0.250 6/28/2040 CAD 20.25 FRANCE ------ AIR FRANCE-KLM 4.970 4/1/2015 EUR 14.76 ALCATEL SA 4.750 1/1/2011 EUR 16.43 ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.59 ATARI SA 4.000 4/1/2020 EUR 0.68 ATOS ORIGIN SA 2.500 1/1/2016 EUR 47.74 CALYON 6.000 6/18/2047 EUR 44.56 CAP GEMINI SA 2.500 1/1/2010 EUR 51.85 CAP GEMINI SOGET 1.000 1/1/2012 EUR 42.86 CAP GEMINI SOGET 3.500 1/1/2014 EUR 42.41 CLUB MEDITERRANE 4.375 11/1/2010 EUR 48.39 EURAZEO 6.250 6/10/2014 EUR 55.83 GROUPE VIAL 2.500 1/1/2014 EUR 25.11 MAUREL & PROM 3.500 1/1/2010 EUR 22.72 MAUREL ET PROM 7.125 7/31/2014 EUR 18.66 NEXANS SA 4.000 1/1/2016 EUR 61.28 PEUGEOT SA 4.450 1/1/2016 EUR 30.51 PUBLICIS GROUPE 3.125 7/30/2014 EUR 33.82 PUBLICIS GROUPE 1.000 1/18/2018 EUR 44.89 RENTENBANK 1.000 3/29/2017 NZD 67.12 RHODIA SA 0.500 1/1/2014 EUR 40.62 SCOR SA 4.125 1/1/2010 EUR 2.13 SOC AIR FRANCE 2.750 4/1/2020 EUR 20.59 SOITEC 6.250 9/9/2014 EUR 10.36 SOLON AG SOLAR 1.375 12/6/2012 EUR 41.46 TEM 4.250 1/1/2015 EUR 54.82 THEOLIA 2.000 1/1/2014 EUR 11.36 VALEO 2.375 1/1/2011 EUR 46.07 GERMANY ------- DEUTSCHE BK LOND 3.000 5/18/2012 CHF 72.81 DEUTSCHE BK LOND 1.000 3/31/2027 USD 47.98 ESCADA AG 7.500 4/1/2012 EUR 23.48 GOTHAER ALLG VER 5.527 9/29/2026 EUR 76.47 HSH NORDBANK AG 4.375 2/14/2017 EUR 70.20 HVB REAL ESTATE 6.480 3/21/2022 EUR 103.65 HYPO REAL ESTATE 4.690 12/14/2026 EUR 69.90 HYPO REAL ESTATE 5.440 4/13/2034 EUR 72.77 HYPOREAL INTL AG 4.560 3/28/2021 EUR 74.95 HYPOREAL INTL AG 4.675 9/13/2021 EUR 74.99 IKB DEUT INDUSTR 4.500 7/9/2013 EUR 78.08 L-BANK FOERDERBK 0.500 5/10/2027 CAD 42.90 LB BADEN-WUERTT 5.250 10/20/2015 EUR 35.04 LB BADEN-WUERTT 2.500 1/30/2034 EUR 57.10 TUI AG 2.750 9/1/2012 EUR 74.29 TUI AG 5.500 11/17/2014 EUR 59.09 VAC FINANZ 9.250 4/15/2016 EUR 38.00 VAC FINANZ 9.250 4/15/2016 EUR 38.00 WUERTTEMBRG LEBN 5.375 6/1/2026 EUR 74.63 GREECE ------ YIOULA GLASSWORK 9.000 12/1/2015 EUR 57.25 YIOULA GLASSWORK 9.000 12/1/2015 EUR 57.25 HUNGARY ------- ZAGREBACKI HOLD 5.500 7/10/2017 EUR 81.87 REP OF HUNGARY 2.110 10/26/2017 JPY 68.88 ICELAND ------- GLITNIR BANKI HF 6.693 6/15/2016 USD 6.98 IRELAND ------- ALLIED IRISH BKS 5.250 3/10/2025 GBP 65.91 ALLIED IRISH BKS 5.625 11/29/2030 GBP 64.52 BANK OF IRELAND 4.875 1/22/2018 GBP 71.33 DEPFA ACS BANK 0.500 3/3/2025 CAD 30.25 DEPFA ACS BANK 5.250 3/31/2025 CAD 72.11 DEPFA ACS BANK 3.250 7/31/2031 CHF 98.20 DEPFA ACS BANK 4.900 8/24/2035 CAD 60.95 DEPFA ACS BANK 5.125 3/16/2037 USD 75.82 DEPFA ACS BANK 5.125 3/16/2037 USD 77.62 IRISH LIFE & PER 4.625 5/9/2017 EUR 69.83 IRISH NATIONWIDE 5.500 1/10/2018 GBP 42.37 ONO FINANCE II 8.000 5/16/2014 EUR 64.63 ONO FINANCE II 8.000 5/16/2014 EUR 65.13 ONO FINANCE PLC 10.500 5/15/2014 EUR 69.32 ONO FINANCE PLC 10.500 5/15/2014 EUR 69.33 UT2 FUNDING PLC 5.321 6/30/2016 EUR 61.93 ITALY ----- ALITALIA SPA 7.500 7/22/2010 EUR 24.13 COMUNE DI MILANO 4.019 6/29/2035 EUR 69.38 RISANAMENTO 1.000 5/10/2014 EUR 71.96 ROMULUS FINANCE 5.441 2/20/2023 GBP 70.19 LUXEMBOURG ---------- ARCELORMITTAL 7.250 4/1/2014 EUR 29.56 BREEZE 4.524 4/19/2027 EUR 62.68 CRC BREEZE 5.290 5/8/2026 EUR 72.97 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 62.02 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 61.44 SAFILO CAP INTL 9.625 5/15/2013 EUR 66.48 SAFILO CAP INTL 9.625 5/15/2013 EUR 66.38 TECNOST INTL NV 3.550 5/14/2032 JPY 71.52 NETHERLANDS ----------- ABN AMRO BANK NV 3.375 8/15/2031 CHF 101.82 ABN AMRO BANK NV 6.000 3/16/2035 EUR 67.73 ABN AMRO BANK NV 7.540 6/29/2035 EUR 60.04 AI FINANCE B.V. 10.875 7/15/2012 USD 51.75 AIR BERLIN FINAN 1.500 4/11/2027 EUR 58.56 ALB FINANCE BV 9.000 11/22/2010 USD 26.99 ALB FINANCE BV 8.750 4/20/2011 USD 26.98 ALB FINANCE BV 7.875 2/1/2012 EUR 27.97 ALB FINANCE BV 9.250 9/25/2013 USD 26.94 ARPENI PR INVEST 8.750 5/3/2013 USD 71.13 ARPENI PR INVEST 8.750 5/3/2013 USD 71.13 ASTANA FINANCE 9.000 11/16/2011 USD 23.48 BLT FINANCE BV 7.500 5/15/2014 USD 58.00 BLT FINANCE BV 7.500 5/15/2014 USD 59.50 BSP FINANCE BV 10.750 11/1/2011 USD 71.13 CRR BV 10.000 6/19/2011 USD 9.99 ELEC DE CAR FIN 8.500 4/10/2018 USD 61.46 EM.TV FINANCE BV 5.250 5/8/2013 EUR 3.68 FINANCE & CREDIT 10.375 1/25/2010 USD 70.99 IVG FINANCE BV 1.750 3/29/2017 EUR 66.56 KAZKOMMERTS INTL 8.000 11/3/2015 USD 81.69 KAZKOMMERTS FIN 8.625 7/27/2016 USD 74.17 KAZKOMMERTS INTL 7.500 11/29/2016 USD 76.45 KAZKOMMERTS INTL 6.875 2/13/2017 EUR 74.23 KAZKOMMERTS FIN 8.500 6/13/2017 USD 72.42 KBC IFIMA NV 6.004 2/7/2025 USD 68.64 LEHMAN BROS TSY 7.250 10/5/2035 EUR 8.97 NATL INVESTER BK 25.983 5/7/2029 EUR 36.09 NED WATERSCHAPBK 0.500 3/11/2025 CAD 45.83 NIB CAPITAL BANK 4.790 12/17/2043 EUR 69.71 NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 68.38 NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 68.38 NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 69.27 NXP BV/NXP FUNDI 9.500 10/15/2015 USD 74.63 NXP BV/NXP FUNDI 9.500 10/15/2015 USD 74.63 NXP BV/NXP FUNDI 9.500 10/15/2015 USD 73.50 Q-CELLS INTERNAT 1.375 2/28/2012 EUR 70.30 RABOBANK 4.168 2/25/2020 EUR 87.28 TEMIR CAPITAL 9.000 11/24/2011 USD 29.00 TEMIR CAPITAL 9.500 5/21/2014 USD 24.25 TEMIR CAPITAL 9.500 5/21/2014 USD 20.75 TJIWI KIMIA FIN 13.250 8/1/2001 USD 0.01 TURANALEM FIN BV 7.875 6/2/2010 USD 24.25 TURANALEM FIN BV 6.250 9/27/2011 EUR 22.98 TURANALEM FIN BV 8.000 3/24/2014 USD 24.00 TURANALEM FIN BV 8.500 2/10/2015 USD 24.21 NORWAY ------ EKSPORTFINANS 0.500 5/9/2030 CAD 36.75 NORSKE SKOGIND 7.000 6/26/2017 EUR 67.48 POLAND ------ POLAND GOVT BOND 3.300 6/16/2038 JPY 70.55 POLAND-REGD-RSTA 2.810 11/16/2037 JPY 62.42 REP OF POLAND 2.620 11/13/2026 JPY 70.73 REP OF POLAND 2.648 3/29/2034 JPY 62.95 REP OF POLAND 3.220 8/4/2034 JPY 72.04 REP OF POLAND 4.250 7/20/2055 EUR 64.06 RUSSIA ------ RAIFF ZENTRALBK 4.500 9/28/2035 EUR 87.97 RUSSIAN STANDARD 15.000 2/9/2011 RUB 60.32 ZLOMREX INT FIN 8.500 2/1/2014 EUR 34.00 ZLOMREX INT FIN 8.500 2/1/2014 EUR 34.00 SPAIN ----- GENERAL DE ALQUI 2.750 8/20/2012 EUR 56.89 MINICENTRALES 4.810 11/29/2034 EUR 61.03 SWEDEN ------ SWEDISH EXP CRED 0.500 12/17/2027 USD 48.86 SWITZERLAND ----------- CYTOS BIOTECH 2.875 2/20/2012 CHF 51.40 UBS AG JERSEY 9.000 3/9/2010 USD 57.86 UBS AG JERSEY 9.000 5/18/2010 USD 57.58 UBS AG JERSEY 9.000 6/11/2010 USD 56.25 UBS AG JERSEY 9.000 7/2/2010 USD 56.40 UBS AG JERSEY 9.000 7/19/2010 USD 56.65 UBS AG JERSEY 9.350 7/27/2010 USD 57.50 UBS AG JERSEY 9.000 8/13/2010 USD 61.35 UBS AG JERSEY 9.500 8/31/2010 USD 63.70 UBS AG JERSEY 13.900 1/31/2011 USD 36.80 UBS AG JERSEY 14.640 1/31/2011 USD 38.65 UBS AG JERSEY 16.170 1/31/2011 USD 13.54 UBS AG JERSEY 10.000 2/11/2011 USD 58.57 UBS AG JERSEY 15.250 2/11/2011 USD 12.37 UBS AG JERSEY 11.330 3/18/2011 USD 18.44 UBS AG JERSEY 16.160 3/31/2011 USD 43.07 UBS AG JERSEY 11.030 4/21/2011 USD 21.56 UBS AG JERSEY 10.650 4/29/2011 USD 16.18 UBS AG JERSEY 13.000 6/16/2011 USD 46.77 UBS AG JERSEY 10.280 8/19/2011 USD 33.02 UBS AG JERSEY 10.360 8/19/2011 USD 52.08 UBS AG JERSEY 11.150 8/31/2011 USD 36.70 UBS AG JERSEY 9.350 9/21/2011 USD 66.10 UBS AG JERSEY 9.450 9/21/2011 USD 49.73 UBS AG JERSEY 3.220 7/31/2012 EUR 63.67 UNITED KINGDOM -------------- ALPHA CREDIT GRP 2.940 3/4/2035 JPY 73.85 AMDOCS LIMITED 0.500 3/15/2024 USD 65.00 BARCLAYS BK PLC 11.650 5/20/2010 USD 47.78 BARCLAYS BK PLC 7.610 6/30/2011 USD 53.30 BARCLAYS BK PLC 10.600 7/21/2011 USD 40.34 BK NED GEMEENTEN 0.500 6/27/2018 CAD 69.18 BK NED GEMEENTEN 0.500 2/24/2025 CAD 46.94 BRADFORD&BIN BLD 7.625 2/16/2010 GBP 6.00 BRADFORD&BIN BLD 5.750 12/12/2022 GBP 8.27 BRADFORD&BIN PLC 6.625 6/16/2023 GBP 5.99 BRADFORD&BIN BLD 4.910 2/1/2047 EUR 71.79 BRIT INSURANCE 6.625 12/9/2030 GBP 68.06 BROADGATE FINANC 5.098 4/5/2033 GBP 68.75 CATTLES PLC 7.875 1/17/2014 GBP 7.99 CATTLES PLC 7.125 7/5/2017 GBP 7.97 CHELSEA BUILDING 5.875 3/7/2019 GBP 32.73 CITY OF KIEV 8.000 11/6/2015 USD 68.16 CITY OF KYIV 8.250 11/26/2012 USD 75.44 CJSC FIRST UKRAI 9.750 2/16/2010 USD 72.98 CO-OPERATIVE BNK 5.750 12/2/2024 GBP 76.26 CO-OPERATIVE BNK 5.875 3/28/2033 GBP 71.92 CONSORT HEALTH 2.068 6/19/2042 GBP 63.87 DISCOVERY EDUCAT 1.948 3/31/2037 GBP 62.37 EFG HELLAS PLC 2.760 5/11/2035 JPY 66.76 ENTERPRISE INNS 6.500 12/6/2018 GBP 82.67 ENTERPRISE INNS 6.875 2/15/2021 GBP 80.24 ENTERPRISE INNS 6.875 5/9/2025 GBP 76.94 ENTERPRISE INNS 6.375 9/26/2031 GBP 70.71 EXIM OF UKRAINE 8.400 2/9/2016 USD 75.96 F&C ASSET MNGMT 6.750 12/20/2026 GBP 66.95 GREENE KING FIN 5.702 12/15/2034 GBP 70.08 HBOS PLC 4.500 3/18/2030 EUR 69.83 HBOS PLC 6.000 11/1/2033 USD 62.48 HBOS PLC 6.000 11/1/2033 USD 62.48 HEALTHCARE SUPP 2.067 2/19/2043 GBP 65.67 INEOS GRP HLDG 7.875 2/15/2016 EUR 53.75 INEOS GRP HLDG 7.875 2/15/2016 EUR 53.39 INEOS GRP HLDG 8.500 2/15/2016 USD 54.25 INEOS VINYLS FIN 9.125 12/1/2011 EUR 71.75 INEOS VINYLS FIN 9.125 12/1/2011 EUR 71.75 KENSINGTON GROUP 9.000 12/21/2015 GBP 62.25 LONGSTONE FINANC 4.896 4/19/2031 GBP 74.19 LOUIS NO1 PLC 8.500 12/1/2014 EUR 73.21 MITCHELLS & BUTL 6.469 9/15/2030 GBP 73.02 MARSTONS ISSUER 5.641 7/15/2035 GBP 69.65 NATL GRID GAS 1.754 10/17/2036 GBP 46.75 NATL GRID GAS 1.771 3/30/2037 GBP 45.16 NATL GRID GAS 1.893 5/1/2037 GBP 102.94 NATL GRID GAS 1.776 8/28/2037 GBP 101.07 NATL GRID GAS 1.774 4/4/2039 GBP 100.09 NATL GRID GAS 1.730 6/28/2046 GBP 101.27 NETWRK RAIL INFR 1.565 12/6/2044 GBP 94.60 NORTHERN ROCK 5.625 1/13/2015 GBP 34.50 NORTHERN ROCK 5.750 2/28/2017 GBP 33.65 NORTHERN ROCK 10.375 3/25/2018 GBP 48.50 NORTHERN ROCK 6.375 12/2/2019 GBP 75.15 NORTHERN ROCK 9.375 10/17/2021 GBP 35.05 OJSC BANK NADRA 9.250 6/28/2010 USD 20.00 PRINCIPALITY BLD 5.375 7/8/2016 GBP 52.41 PUNCH TAVERNS 7.567 4/15/2026 GBP 72.00 PUNCH TAVERNS 6.468 4/15/2033 GBP 66.56 ROYAL BK SCOTLND 4.700 7/3/2018 USD 74.62 ROYAL BK SCOTLND 9.500 4/4/2025 USD 61.67 SPIRIT ISSUER 5.472 12/28/2028 GBP 69.87 TAYLOR WIMPEY 8.675 7/3/2012 GBP 92.19 TELEREAL SECUR 5.425 12/10/2031 GBP 74.36 THAMES WATER UTL 1.681 7/11/2055 GBP 148.45 TXU EASTERN FNDG 6.450 5/15/2005 USD 0.01 UKRAINE GOVT 4.950 10/13/2015 EUR 67.61 UKRAINE GOVT 4.950 10/13/2015 EUR 66.93 UKRAINE GOVT 6.580 11/21/2016 USD 72.78 UKRAINE GOVT 6.580 11/21/2016 USD 73.28 UKRAINE GOVT 6.750 11/14/2017 USD 72.82 UKRAINE GOVT 6.750 11/14/2017 USD 72.26 UNIQUE PUB FIN 7.395 3/28/2024 GBP 70.91 UNIQUE PUB FIN 6.464 3/30/2032 GBP 58.45 VAB BANK 10.125 6/14/2010 USD 63.47 WESSEX WATER FIN 1.369 7/31/2057 GBP 19.80 WESSEX WATER FIN 1.499 11/29/2058 GBP 49.47 ********* 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 * * *