TCREUR_Public/091111.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Wednesday, November 11, 2009, Vol. 10, No. 223

                            Headlines

A R M E N I A

MARANI BRANDS: Posts Restated Net Loss of US$3.4 Million in FY2008


A U S T R I A

OEBAU-KOECK GMBH: Claims Filing Deadline is November 20
SILA DUEGUEN: Claims Filing Deadline is November 20
TELECOM EUROPE: Claims Filing Deadline is November 20
WERTBAU GMBH: Claims Filing Deadline is November 20
UNICREDIT BANK: S&P Corrects Rating on EUR40 Mil. Notes to 'BB+'


F R A N C E

ALCATEL LUCENT: S&P Downgrades Corporate Credit Rating to 'B'
CMA CGM: Losing US$148 Mln a Month; Seeks Investors to Reduce Debt


G E R M A N Y

ARCANDOR AG: Karstadt Workers Ready to Forego Pay to Keep Jobs
EUROPROP SA: Moody's Cuts Rating on EUR35MM Class C Notes to 'B2'
EUROPROP SA: Fitch Junks Ratings on Three Classes of Notes
FLEET STREET: Fitch Junks Rating on Class D Notes to 'CCC'
GENERAL MOTORS: Nick Reilly to Lead Opel/Vauxhall Europe

QUELLE BAUSPARKASSE: Faces Closure; 120 Jobs Affected


I R E L A N D

ALLIED IRISH: May Raise Fresh Capital in First Half of 2010
BANK OF IRELAND: May Raise Fresh Capital in First Half of 2010


I T A L Y

PARMALAT SPA: Earns EUR104 Mln in Third Quarter 2009


K A Z A K H S T A N

ASTANA FINANCE: Shares Delisted; Posts US$774 Mln Loss
BPA INTERNATIONAL: Creditors Must File Claims by November 25
CAP STROY: Creditors Must File Claims by November 25
CONSTRUCTION LINE: Creditors Must File Claims by November 25
DELFIN KASPY: Creditors Must File Claims by November 25

JAIK STROY: Creditors Must File Claims by November 25
KASPYISKAYA STROITELNAYA: Creditors Must File Claims by Nov. 25
NATS DERBIS: Creditors Must File Claims by November 25
ORLEU S: Creditors Must File Claims by November 25
OUSHEN LLP: Creditors Must File Claims by November 25

TECHNO TRADE: Creditors Must File Claims by November 25


K Y R G Y Z S T A N

BLOUE STAR: Creditors Must File Claims by December 2
TECHNO BAZA: Creditors Must File Claims by December 2


L U X E M B O U R G

SPRINGBOARD GROUP: S&P Raises Corporate Credit Rating to 'B+'


N E T H E R L A N D S

EURO GALAXY: Moody's Confirms 'Caa3' Rating on Class E Notes
FAXTOR ABS: Moody's Junks Ratings on Two Classes of Notes


P O L A N D

TVN FINANCE: Moody's Assigns 'B1' Rating on EUR400 Mil. Notes
TVN SA: S&P Downgrades Long-Term Corporate Credit Rating to 'B+'


R U S S I A

ALFA BANK: Fitch Affirms Individual Rating at 'D'
AVANGARD-RAM: Creditors Must File Claims by November 18
BIOLAN-STROY: Creditors Must File Claims by November 18
DELANCE LTD: S&P Downgrades Corporate Credit Rating to 'SD'
DONSKOY SEED: Creditors Must File Claims by November 18

EKODOM-STROY: Creditors Must File Claims by November 18
BANK URALSIB: Fitch Affirms Individual Rating at 'D'
BANK ZENIT: Fitch Affirms Individual Rating at 'D'
MDM BANK: Fitch Affirms Individual Rating at 'D'
NOMOS-BANK: Fitch Affirms Individual Rating at 'D'

PROMSVYAZBANK: Fitch Affirms Individual Rating at 'D'
RUSSIAN STANDARD: Fitch Affirms Individual Rating at 'D'


S P A I N

CAMPOFRIO FOOD: S&P Raises Corporate Credit Rating to 'B+'
SOS CORPORACION: Four Executives Quit Amid Debt Negotiations


S W E D E N

FORD MOTOR: Geely Has Turnaround Plan for Volvo Unit
SAS AB: S&P Downgrades Long-Term Corporate Credit Rating to 'B-'
SKANDINAVISKA ENSKILDA: S&P Corrects Ratings on Two Notes


S W I T Z E R L A N D

AZEDA AG: Claims Filing Deadline is November 13
D. RUF VELOS-MOTOS: Claims Filing Deadline is November 13
GUIDION SUISSE: Claims Filing Deadline is November 13
INNUENDO AG: Claims Filing Deadline is November 13
ISG INSTALLATIONS: Claims Filing Deadline is November 13

KC VENTURECOM: Claims Filing Deadline is November 16
LEDERWOL AG: Claims Filing Deadline is November 16
PETROPLUS HOLDING: S&P Downgrades Corporate Credit Rating to 'BB-'
RESTAURANT ALPENCLUB: Claims Filing Deadline is November 16
S'BERGLI GMBH: Claims Filing Deadline is November 18

UNIIVEST HOLDING: Unilens Vision Has Deal to Buy 48% of Shares
WOHNBAU AG: Claims Filing Deadline is November 16


T U R K E Y

ALBARAKA TURK: Fitch Affirms Individual Rating at 'D'
ANADOLUBANK: Moody's Lifts Bank Financial Strength Rating to 'D+'
ASYA KATILIM: Fitch Affirms Individual Rating at 'D'
KUVEYT TURK: Fitch Affirms Individual Rating at 'D'
ANADOLUBANK: Moody's Lifts Bank Financial Strength Rating to 'D+'

TURKIYE IS: Moody's Lifts Bank Financial Strength Rating to 'C-'


U K R A I N E

ALPARY-BM LLC: Creditors Must File Claims by November 13
DONBASS INDUSTRIAL: Creditors Must File Claims by November 13
DWELLING BUILDING-4: Creditors Must File Claims by November 13
KRISTINOVKA AGRICULTURAL: Creditors Must File Claims by Nov. 13
KURS LLC: Creditors Must File Claims by November 13

LASCHEVAYA AGRICULTURAL: Creditors Must File Claims by November 13
NAFTOGAZ OJSC: Fitch Assigns 'B' Rating on Senior Unsec. Bonds
POBUTSERVICE DASHEV: Creditors Must File Claims by November 13
POTASH LLC: Creditors Must File Claims by November 13
RAKURS-DELTA LLC: Creditors Must File Claims by November 13


U N I T E D   K I N G D O M

HEATING FINANCE: Moody's Withdraws 'Caa1' Corporate Family Rating
INMARSAT FINANCE: S&P Assigns 'BB+' Rating on US$650 Mil. Notes
INMARSAT PLC: Moody's Upgrades Corporate Family Rating to 'Ba1'
LEHMAN BROTHERS: UK Appeals Court Shuns PwC Plan for Lehman Assets
LEHMAN BROTHERS: Arc Capital Placed Into Administration

LEHMAN BROTHERS: FSA Helps Investors of Structured Products
RAND GROUP: Receivership Looms; 150 Jobs at Risk
SEMCAN INC: Naston Calls in Pococks to Assist on Restructuring
STANDARD BANK: Moody's Cuts Bank Financial Strength Rating to 'D'
VEDANTA RESOURCES: Low Q2 Results Won't Move Moody's 'Ba1' Rating

VIRGIN MEDIA: Fitch Assigns 'BB' Rating on Two New Senior Notes
YELL GROUP: Set to Unveil Details of Equity Raising

* Fried Frank Expands International Finance Practice


                         *********


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A R M E N I A
=============


MARANI BRANDS: Posts Restated Net Loss of US$3.4 Million in FY2008
------------------------------------------------------------------
Marani Brands, Inc., filed with the Securities and Exchange
Commission on November 3, 2009, Amendment No. 1 to its annual
report for the fiscal year ended June 30, 2008.

This amendment mainly reflects changes to the Company's financial
statements for fiscal 2008 as a result of the application of
reverse merger accounting, rather than purchase method accounting
to the April 2008 merger transaction between the Company and
Margrit Enterprises International, Inc.

The following financial statements line items were affected by the
restatement:
                                     As
                                 Originally
                                   Stated          As Restated
                                 ----------        -----------
Current Assets                 US$2,567,631       US$2,567,631
Property & Equipment                 $5,510            $5,510
Deposits                            $35,255            $35,255
Goodwill aand Intangibles        $3,861,280                 $0
Total Assets                     $6,469,676         $2,608,396

Total Current Liabilities          $435,452           $435,452
Total Non-Current Liabilities      $249,816           $249,816
Total Liabilities                  $685,268           $685,268
Total Stockholders' Equity       $5,784,408         $1,923,128
Total Liabilities &
  Stockholders' Equity           $6,469,676         $2,608,396

Sales                              $168,058           $168,058
Cost of Sales                       $48,809            $48,809
Gross Profit                       $119,249           $119,249
Operating Expenses               $3,513,683         $3,659,959
Operating Income (Loss)         ($3,394,434)       ($3,540,710)
Total Other Income (Expense)       ($46,526)      ($11,826,103)
Net Income (Loss) Before Income
  Taxes                         ($3,440,960)      ($15,366,813)
Provision for Income Taxes                -                  -
Net Income (Loss)             (US$3,440,960)    (US$15,366,813)

A full-text copy of the Company's amended annual report for the
fiscal year ended June 30, 2008, is available for free at:

     http://researcharchives.com/t/s?48c7

                       Going Concern Doubt

Gruber & Company, LLC, in Saint Louis, Missouri, audited Marani
Brands, Inc., and subsidiaries' consolidated financial statements
as of and for the years ended June 30, 2008, and 2007.  The
auditing firm said that the Company's viability is dependent upon
its ability to obtain future financing and the success of its
future operations.  The auditing firm said these factors raise
substantial doubt as to the Company's ability to continue as a
going concern.

                       About Marani Brands

Based in North Hollywood, Calif., Marani Brands, Inc. (OTC BB:
MRIB) primarily engages in the distribution of wine and spirit
products manufactured in Armenia.  The Company's signature product
is Marani Vodka, a premium vodka which is manufactured exclusively
for the Company in Armenia.


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


OEBAU-KOECK GMBH: Claims Filing Deadline is November 20
-------------------------------------------------------
Creditors of Oebau-Koeck GmbH have until November 20, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for December 3, 2009 at 11:00 a.m.

For further information, contact the company's administrator:

         Goldsteiner & Strebinger OEG
         Wiener Strasse 14-16
         2700 Wiener Neustadt
         Austria
         Tel: 02622/24 222
         Fax: 02622/24 222-22
         E-mail: anwalt@rechtsbuero.at


SILA DUEGUEN: Claims Filing Deadline is November 20
---------------------------------------------------
Creditors of Sila Dueguen Serdar KEG have until November 20, 2009,
to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for December 3, 2009 at 9:00 a.m.

For further information, contact the company's administrator:

         Dr. Anton Aigner
         Wiener Strasse 19
         2700 Wiener Neustadt
         Austria
         Tel: 02622/27925
         Fax: 02622/2175218
         E-mail: aigner@ycom.at


TELECOM EUROPE: Claims Filing Deadline is November 20
-----------------------------------------------------
Creditors of Telecom Europe SAT Telecommunication GmbH have until
November 20, 2009, to file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for December 4, 2009 at 11:15 a.m.

For further information, contact the company's administrator:

         Dr. Katharina Widhalm-Budak
         Favoritenstrasse 22/12a
         1040 Vienna
         Austria
         Tel: 504 64 08
         Fax: 504 64 08 22
         E-mail: widhalm-budak@mitrecht.com


WERTBAU GMBH: Claims Filing Deadline is November 20
---------------------------------------------------
Creditors of Wertbau GmbH have until November 20, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for December 3, 2009 at 9:15 a.m.

For further information, contact the company's administrator:

         Dr. Michael Troethandl
         Hauptplatz 9-13
         2500 Baden
         Austria
         Tel: 02252/86 580
         Fax: 02252/86 580-3
         E-mail: Troethandl@lexacta.com


UNICREDIT BANK: S&P Corrects Rating on EUR40 Mil. Notes to 'BB+'
----------------------------------------------------------------
Standard & Poor's Ratings Services said it is correcting the issue
rating on the EUR40 million credit-linked note issued by UniCredit
Bank Austria AG.  S&P has lowered the rating on the note to 'BB+'
from 'BBB-'.

On June 16, 2009, S&P downgraded the note's obligor, Austrian
building materials group Wienerberger AG, to 'BB+' from 'BBB-' and
removed all the ratings on Wienerberger from CreditWatch with
negative implications, where they had been placed on June 4, 2009.
The rating on the credit-linked note remained unchanged at 'BBB-',
whereas S&P should have lowered it to 'BB+' and removed it from
CreditWatch on the same date.

This press release rectifies this administrative error.

                           Ratings List

                            Downgrade

                     UniCredit Bank Austria AG
                          Senior Unsecured

                                        To      From
                                        --      ----
    EUR40 mil fltg rt ser S243          BB+     BBB-/Watch Neg
    due 11/30/2010

                    * Obligor Wienerberger AG


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


ALCATEL LUCENT: S&P Downgrades Corporate Credit Rating to 'B'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered to 'B'
from 'B+' its long-term corporate credit rating on France-based
telecom equipment supplier Alcatel Lucent.  S&P has affirmed the
'B' short-term corporate credit rating.  The outlook is negative.
The recovery rating of '4' on Alcatel Lucent's senior unsecured
debt is unchanged.

"The downgrade primarily reflects S&P's expectation that the
turnaround in Alcatel Lucent's operating performance, and notably
a return to sustainable positive cash generation, could take
several quarters," said Standard & Poor's credit analyst Patrice
Cochelin.

S&P expects demand for telecom equipment to remain soft in the
coming quarters, while competition among vendors, particularly
from Europe and China, remains very intense.  Combined with
Alcatel Lucent's significant debt maturities in the next two
years, these threats lead us to believe that Alcatel Lucent's
large cash balances, which include the benefits of recent
refinancing, could be rapidly depleted.  At Sept. 30, 2009,
Alcatel Lucent reported gross consolidated debt of EUR5.4 billion,
including EUR0.6 billion for the equity component of convertible
bonds.

The main ratings support stems from S&P's assessment of Alcatel
Lucent's near-term liquidity as adequate, following recent asset
disposals and the convertible bond issue.  The company's broad
technology portfolio, client base, and geographic footprint also
underpin the ratings.

The negative outlook primarily reflects S&P's expectation that
Alcatel Lucent's turnaround efforts might take several quarters,
and might result in further meaningful cash burn.

"We could lower the ratings further if the company's liquidity
weakened materially, or if cash burn remained high," said Mr.
Cochelin.

Meaningful improvement in Alcatel Lucent's margins and free
operating cash flow generation in the next few quarters, combined
with the maintenance of adequate liquidity, could support a return
to a stable outlook.


CMA CGM: Losing US$148 Mln a Month; Seeks Investors to Reduce Debt
------------------------------------------------------------------
Helene Fouquet at Bloomberg News, citing Journal du Dimanche,
reports that CMA CGM SA is losing EUR100 million (US$148 million)
each month.

Bloomberg relates JDD said CMA CGM has debt of EUR7 billion that
includes bank loans, orders for 49 new ships that cannot be
canceled and EUR1 billion of losses after speculation on the oil
market.  According to Bloomberg, JDD said the company is currently
seeking investors help to reduce its debt.

AS reported by the Troubled Company Reporter-Europe on Nov. 6,
2009, CMA CGM faces an important repayment deadline Nov. 20.

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.


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


ARCANDOR AG: Karstadt Workers Ready to Forego Pay to Keep Jobs
--------------------------------------------------------------
Jeremy van Loon at Bloomberg News, citing Bild, reports that
Arcandor AG's insolvent Karstadt department-store chain are
prepared to forgo EUR150 million (US$224 million) in pay to save
jobs.

According to Bloomberg, the newspaper said employees would forfeit
about 75% of their vacation pay and annual bonus.

                        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.


EUROPROP SA: Moody's Cuts Rating on EUR35MM Class C Notes to 'B2'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the Classes A, B and C
Notes of EMEA CMBS issued by EuroProp (EMC VI) S.A. (amounts
reflect initial outstanding):

  -- EUR380.25M Class A Mortgage Backed Floating Rate Notes due
     2017, Downgraded to Aa3; previously on April 8, 2009 Aaa
     Placed Under Review for Possible Downgrade

  -- EUR30M Class B Mortgage Backed Floating Rate Notes due 2017,
     Downgraded to Baa3; previously on April 8, 2009 Aa2 Placed
     Under Review for Possible Downgrade

  -- EUR35M Class C Mortgage Backed Floating Rate Notes due 2017,
     Downgraded to B2; previously on April 8, 2009 A2 Placed Under
     Review for Possible Downgrade

Moody's does not rate the Classes D, E, F, and R Notes issued by
EuroProp (EMC VI) S.A.

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

1) Transaction and Portfolio Overview

EuroProp (EMC VI) S.A. closed in June 2007 and represents the
securitisation of 18 commercial mortgage loans.  Seventeen loans
were originated by Citibank International PLC and Citibank N.A.,
London and one loan was jointly originated by Citibank
International PLC and Deutsche Bank AG.  The loans are secured by
first-ranking mortgages over 125 commercial properties located in
Germany and France.  Since closing the portfolio composition has
not changed and based on the underwriter's market value as of July
2009, 88.3% of the properties are located in Germany and 11.7% are
located in France (the Signac Loan is the only loan backed by a
property located in France).  The property types by U/W market
values are retail (43.5%), office (26.4%), logistics (16.5%) and
residential (13.6%).

Since closing none of the loans have fully repaid or prepaid.  The
initial pool balance however reduced by 2.1% due to scheduled
amortization.  The three largest loans in the pool are the Sunrise
II Loan, the Develica Gutperle Loan and the Signac Loan which
contribute 23.4%, 13.5% and 10.2% (together 47.1%) of the total
securitized loan balance.

The smallest loan is the Bardowick Loan which contributes 1.1% of
the current total securitized loan balance.  The current loan
Hefindahl index is 9.1 and remains almost unchanged since closing
as a result of no prepayments and only limited amortization within
the loan pool.

The scheduled amortization has been applied to the Notes on a
fully sequential basis.  Since closing, the subordination for the
Moody's rated Classes has marginally increased, from 22.4% to
22.8% for the Class A Notes, from 16.2% to 16.6% for the Class B
Notes and from 9.1% to 9.3% for the Class C Notes.

According to the investor report as of the last interest payment
date in July 2009, none of the loans were on the servicer's
watchlist or in special servicing.  However, the Signac Loan
(10.2% of the current loan pool balance) is in breach of its whole
loan ICR and LTV covenants, which constitutes an event of default
under the loan agreement.

2) Rating Rationale

The downgrade of the Classes A, B and C Notes follows a detailed
re-assessment of the loan and property portfolio's credit risk.
Hereby, Moody's main focus was on property value declines, term
default risk, refinancing risk and the anticipated work-out timing
for potentially defaulting loans in the future.  In its review,
Moody's especially concentrated on the six largest loans in the
portfolio accounting for on aggregate 69.7% of the current
portfolio i.e.  the Sunrise II Loan, the Develica Gutperle Loan,
the Signac Loan, the Henderson Staples Loan, the Epic Rhino Loan
and the Develica Bonn Loan.

As outlined in more detail below, the rating action is mainly
driven by:

  (i) the refinancing profile of the transaction;

(ii) the performance of the European commercial property markets;
      and

(iii) Moody's opinion about future property value performance.

Driven by, in most cases, a higher default risk assessment at the
loan maturity dates, Moody's now anticipates that a large portion
of the portfolio will default over the course of the transaction
term.  Coupled with the negative impact of reduced property
values, Moody's expects a substantial amount of losses on the
securitized portfolio.  Those expected losses will, given the
anticipated work-out strategy for defaulted loans, crystallize
mostly towards end of the transaction term.

3) Moody's Portfolio Analysis

Property Values.  Property values across the Continental European
markets have declined to date in 2009, in some markets
significantly, and are expected to continue to decline at least
until 2010.  Moody's estimates that compared to the U/W market
values at closing, the values of the properties securing this
transaction have declined on a like for like basis on average by
approximately 15% to date (ranging from a 36% decrease for the
portfolio securing the Henderson 1 (Oberursel) Loan to an
unchanged value for the portfolio securing the Project Ash Loan).
Looking ahead, Moody's anticipates further declines until 2010 and
2011, resulting in, on average, a 21% value decline from the
closing U/W value to Moody's trough value (ranging from a 38%
decline for the portfolio securing the Henderson 1 (Oberursel)
Loan to a 4% decline for the portfolio securing the Henderson -
Bergen Loan).

Overall, Moody's estimated and anticipated property value declines
are lower than those of other Pan-European CMBS transactions
within the same vintage.  Moody's property value assessment
considers that rental cash flows have improved for some properties
and reflects a weighted average cap rate of 8.1% for the Moody's
trough value compared to a WA cap rate at closing of 6.75%.
Moody's trough value cap rates range from 6.50% to 9.10%.

Refinancing Risk.  Six loans (45.2% of the current loan pool
balance) have their maturity date in 2011, two loans (17.5%) in
2012, nine loans in 2013 (31.6%) and one loan in 2014 (5.7%).
Moody's adjustment of the refinancing risk assessment is primarily
due to the decrease in property values and its expectations that
commercial real estate lending will remain scarce over the next 2
to 3 years.  As Moody's expects property values in the Continental
European markets to only slowly recover from 2011 onwards, all
loans will be still highly leveraged at their respective maturity
dates.  Consequently, in Moody's view, for all of the loans, the
default risk at maturity has increased substantially compared to
the closing analysis.

Based on the above property value assessment, Moody's estimates
that the transaction's mid-2009 WA securitized loan-to-value ratio
was 88% compared to the current U/W LTV of 72%.  Due to the
further envisaged declines, the WA LTV will increase in Moody's
opinion to 94% in 2010 and will only gradually recover thereafter.
Based on Moody's anticipated trough values, the LTVs for the
securitized loans range between 71% (Bonn Loan) and 113%
(Henderson 1 (Oberursel) Loan).  Considering that three of the
loans (Gutperle Loan, Signac Loan and Bonn Loan) have additional
debt in form of B-loans, the overall whole loan leverage is on a
weighted average basis 98%, based on estimated trough values.

The Signac Loan (10.2% of the current loan pool balance) is
subject to two extension options which may enable the borrower to
extend the maturity date from July 2011 to July 2012 or July 2013
at the latest.

Term Default Risk.  The occupational markets in Continental Europe
are currently characterized by falling rents, increasing vacancy
rates and higher than average tenant default rates.  In
particular, loans secured by properties which are subject to
significant lease rollover over the next few years will be, in
Moody's view, exposed to weakening occupational markets.  As a
consequence, Moody's has incorporated into its analysis an
allowance for deterioration in coverage ratios and weakening
tenant quality, in turn increasing the term default risk
assumption for some of the loans.

Overall Default Risk.  Based on its revised term and maturity
default risk assessment for the securitized loans, Moody's
anticipates that a large portion of the portfolio will default
over the course of the transaction term.  The default risk of the
loans is predominantly driven by refinancing risk.  In Moody's
view, the Bonn Loan (7.0% of current portfolio balance) has
currently the lowest default risk, while the Henderson 1
(Oberursel) Loan (1.5% of the current portfolio) has the highest
risk of defaulting.

Moody's notes in this respect these key factors impacting the
overall default risk of the Top 3 loans in the pool:

  (i) Increased vacancy levels within the German secondary retail
      portfolio of the largest loan, Sunrise II Loan, which in
      turn led to decreasing rental income.

(ii) Bifurcated lease expiry profile within the two distribution
      centres securing the second largest loan, Gutperle Loan.
      One distribution warehouse is located in Minden (Germany)
      and let to a single tenant whose lease is due to expire
      shortly after the loan maturity.

(iii) The Signac Loan is currently in default due to a breach of
      its whole loan ICR and LTV covenants and excess rental cash
      is trapped.  Besides, there is significant lease roll over
      risk due to lease break options in the maturity year of the
      loan with respect to the largest tenant in the office
      property of the third largest loan, Signac Loan, which could
      adversely affect the refinancing risk of this loan.

Concentration Risk.  The portfolio securitized in this transaction
exhibits an average concentration in terms of property types and
property location.

Work-Out Strategy.  In scenarios where a loan defaults, Moody's
current expectation is that the servicer will most likely not
pursue an immediate sale of the property in the depressed market
conditions.  Therefore, Moody's has assumed that in most cases,
upon default, a sale of the mortgaged properties and ultimate
work-out of the loan will occur at a later point in time.

Increased Portfolio Loss Exposure.  Taking into account the
increased default risk of the loans, the most recent performance
of the commercial property markets in Continental Europe, Moody's
opinion about future property value performance and the most
likely work-out strategies for defaulted loans, Moody's
anticipates a substantial amount of losses on the securitized
portfolio, which will, given the backloaded default risk profile
and the anticipated work-out strategy for defaulted loans,
crystallize only towards the mid to end of the transaction term.


EUROPROP SA: Fitch Junks Ratings on Three Classes of Notes
----------------------------------------------------------
Fitch Ratings has downgraded EuroProp (EMC-VI) S.A.'s A to F note
classes.  The rating actions are:

  -- EUR370 million class A (XS0301901657) downgraded to 'A' from
     'AAA'; Outlook Stable

  -- EUR30 million class B (XS0301902622) downgraded to 'BBB' from
     'AA'; Outlook Negative

  -- EUR35 million class C (XS0301903356) downgraded to 'B' from
     'A'; Outlook Negative

  -- EUR30 million class D (XS0301903513) downgraded to 'CCC' from
     'BBB'; assigned a Recovery Rating (RR) of 'RR4'

  -- EUR4 million class E (XS0301903943) downgraded to 'CC' from
     'BBB'; assigned 'RR6'

  -- EUR6.6 million class F (XS0301904248) downgraded to 'CC' from
     'BB'; assigned 'RR6'

The downgrades reflect deterioration in the European commercial
real estate market since the last rating action in December 2008.
In particular, Fitch believes the Sunrise II, Signac and Henderson
1 (Oberursel) loans to have been particularly impacted by a
combination of deteriorating performance and upward yield shifts.
Fitch's criteria for European CMBS surveillance and European
multifamily loans were used to analyze the quality of the
underlying commercial loans.

The transaction consists of 18 loans secured by 125 properties, of
which all but one are located in Germany, with a single Paris
office backing the Signac loan.  Since closing no loans have
prepaid and no properties have been sold, although the collateral
for three of the loans (Signac, Tshuva and Gutperle) has been re-
valued.  Eight loans benefit from scheduled amortization which
has, to date, reduced the aggregate loan balance by 2% to EUR475.5
million.  The combination of amortization and re-valuations has
resulted in a slight decrease in the reported loan-to-value ratio
to 72% from 73.5%.  This compares to WA Fitch LTV of 96.6%,
implying a WA market value decline of 25.1%.  Despite the
concentration of loan maturity dates in 2011 (45.2% of the pool),
the legal final maturity date in April 2017 provides the servicer
with additional flexibility should the loans fail to repay.

The Sunrise II loan (23.4% of the pool balance) is a 50%
participation in a larger facility secured by 47 retail, retail
warehouse, shopping centre and mixed-use properties.  The reported
LTV stands at 71.7%, which compares to an estimated Fitch LTV of
107.1% (the exit Fitch LTV stands at 104.1%).  The Fitch LTV
reflects an overall MVD of 33%.  The combination of a high Fitch
LTV and loan maturity in July 2011 leaves the loan significantly
exposed to balloon risk.  Further, the portfolio has suffered from
declining collateral income in recent quarters due to last year's
administration of SinnLeffers, a German fashion retailer, which
has shut approximately half of its stores, some of which were
securitized in this portfolio.  This has resulted in the presence
of some medium to large vacant assets (11% by lettable area for
the overall portfolio), as well as decreased gross rental income
and increased re-letting costs, which ultimately led the loan to
breach its 1.25x cash trap trigger in the July 2009 interest
payment date.  The Sunrise II loan has been placed on Fitch's
watchlist.

The Gutperle loan (13.5%) is backed by two logistics warehouses
located in Offenbach-Queich and Minden, in the German states of
Rhineland-Palatinate and North Rhine Westphalia, respectively.
Both properties are fully let to Daimler AG (rated 'BBB+'/Negative
Outlook) with a WA remaining lease term of 6.4 years; however, the
Minden lease is scheduled to expire in 2012.

The Signac loan (10.2%) is secured by a single office property
located in Gennevilliers, Greater Paris.  The main tenants are
Pechiney-Alcan (50% of passing rent), part of the Rio Tinto Group,
and B2S (24%), a large call centre operator.  The latter is
currently in arrears and, consequently, the loan is in breach of
both its interest coverage ratio and LTV covenants; the agent
(Citibank) is currently in talks with the borrower to agree a
remedy.


FLEET STREET: Fitch Junks Rating on Class D Notes to 'CCC'
----------------------------------------------------------
Fitch Ratings has downgraded Fleet Street Finance Two Plc and
removed it from Rating Watch Negative.  The class A, B and C have
been assigned a Negative Outlook, while a Recovery Rating of 'RR6'
has been assigned to the class D to indicate expected recoveries
of less than 10% of the principal balance.  The rating actions
are:

  -- EUR728.2 million class A (XS0268932836) downgraded to 'A'
     from 'AAA'; RWN removed, assigned Negative Outlook

  -- EUR166.6 million class B (XS0268933487) downgraded to 'BBB-'
     from 'AA'; RWN removed, assigned Negative Outlook

  -- EUR140.2 million class C (XS0268934451) downgraded to 'B+'
     from 'A'; RWN removed, assigned Negative Outlook

  -- EUR96.9 million class D (XS0268934618) downgraded to 'CCC'
     from 'BBB'; RWN removed, assigned 'RR6'

The transaction is a single-borrower securitization backed by a
portfolio of department stores located throughout Germany, all of
which are leased to Arcandor AG's subsidiaries Karstadt Warenhaus
GmbH (Karstadt, accounting for 97.7% of contracted rent) and
Quelle GmbH.

The downgrades reflect the commencement of the formal insolvency
proceedings of Arcandor AG and its subsidiaries, Karstadt and
Quelle, in September 2009.  While the outcome of the proceedings
remains unclear, the insolvency administrator confirmed in October
2009 that it will liquidate Quelle, resulting in a number of
properties being vacated.  Further details regarding the affected
assets are yet to be provided by the servicer, Capita Asset
Services Ireland Limited (rated 'CPS2+').  Given the weak economic
climate and the deterioration in the German commercial real estate
market, Fitch believes that any vacated assets will be difficult
to re-let and that, consequently, their value will be materially
impacted.

Despite the tenant insolvency, a loan event of default has not
occurred as, with the exception of one missed rental payment in
June 2009, full rental payments continue to be made by both
tenants.  As the loan accrues interest at a floating rate and is
hedged via a cap, current low interest rates mean that the
borrower was able to meet its debt service obligations on both the
securitized and mezzanine debt at the July and October 2009
interest payment dates, despite the missed rental payment.  The
loan-level hedging structure also means that the interest coverage
on the securitized loan of 5.8x (at the October IPD) sits
comfortably above the cash trap trigger of 1.5x.  Consequently,
cash not only continues to be applied to service the mezzanine
loan but any excess after doing so is being released to the
borrower.  Fitch estimates that, at the last IPD, approximately
EUR25m of excess cash was available after making debt service
payments on both the securitized and mezzanine loans.

Fitch's criteria for European CMBS surveillance were used to
analyze the quality of the underlying commercial loan.  The
ratings are based on the agency's expected recoveries on the
portfolio following the default of the tenant, net of all costs
that might be incurred.  Key assumptions in Fitch's analysis
include the length of time to achieve a re-letting on some or all
of the space, costs associated with a re-letting (including
letting fees and capital expenditure), rents per square metre that
can be achieved on the space in a period of stress, and rent-free
periods that might be required to attract new tenants.

Fitch will continue to monitor the performance of the transaction.


GENERAL MOTORS: Nick Reilly to Lead Opel/Vauxhall Europe
--------------------------------------------------------
David N. (Nick) Reilly, General Motors executive vice president
and president, GM International Operations, will immediately
assume responsibility for the operations of Opel/Vauxhall Europe
while an external search for a new CEO commences.

Mr. Reilly, with extensive prior experience in Europe with the
Opel and Vauxhall brands, will support the European leadership
team in running the business and will oversee the creation of a
strategy to position Opel/Vauxhall for long-term success.
Mr. Reilly maintains overall direction of GM's International
Operations based in Shanghai, China, but day-to-day operations of
the various international subsidiaries in his organization will be
handled by the respective country managing directors while he
serves in Europe.

"As we announced last [week], Opel/Vauxhall will remain a fully
integrated member of the New GM family, a decision that is in the
best interests of Opel/Vauxhall, its customers, employees, other
stakeholders and GM," said Fritz Henderson, GM president and CEO.
"With his deep experience with the Opel and Vauxhall brands, Nick
is well suited to lead this transition and to work toward the
earliest possible normalization of the business."

The Wall Street Journal reports GM CEO Fritz Henderson on Monday
met with leaders of its Opel unit to discuss the European auto
maker's future.  Mr. Henderson wanted to get a firsthand look at
the situation at Adam Opel GmbH's headquarters in Ruesselsheim,
just west of Frankfurt, said Opel spokesman Ulrich Weber,
According to the report.  Mr. Weber gave no details except to say
that Mr. Henderson was to stay through Tuesday and meet with the
company's employee council, the report says.  Mr. Henderson was
accompanied by Mr. Reilly, director of GM's international
operations, the report adds.

Hans Demant, GM Europe vice president Engineering, managing
director Adam Opel GmbH, retains his role leading the Opel
Management Board and will work with Reilly in the transition.

Mr. Reilly was appointed GM executive vice president and president
of GM International Operations, effective July 10, 2009.  Based in
Shanghai, China, he is also chairman of both the GM Daewoo Auto
and Technology Company (GMDAT) and Shanghai GM (SGM).

Mr. Reilly had served as GM group vice president and president of
GM Asia Pacific since July 1, 2006.

Mr. Reilly began his GM career in 1975 with the former Detroit
Diesel Allison Division in the United Kingdom.  From 1978 to 1984,
he held various assignments with General Motors in Belgium, the
United States, and Mexico.

Returning to England, he moved to Vauxhall Motors as general
operations manager, aftersales.  He later held the post of
Vauxhall supply manager and was appointed a director of the
company in 1986.

In 1987, Mr. Reilly was named vice president of operations and a
member of the board of directors of GM's IBC vehicle joint venture
with Isuzu in Luton, England.  In 1990, he was appointed director
of manufacturing at Vauxhall's Ellesmere Port plant.  Four years
later, he became vice president of quality and reliability for
General Motors Europe in Zurich, Switzerland, and a member of the
GM Europe Strategy Board.

He returned to the U.K. in 1996 as chairman and managing director
of Vauxhall and, in 1997, was named a GM vice president. In 2001,
Reilly returned to Zurich, Switzerland, as vice president of
sales, marketing, and aftersales for GM Europe, from where he
transferred to Korea to lead GM's transition team in the formation
of GM Daewoo, beginning in January 2002. He assumed the duties of
president and chief executive officer of GMDAT upon the company's
founding in October 2002.

A native of the United Kingdom, Mr. Reilly is a graduate of
Cambridge University. In 2000, he was appointed as a Commander of
the British Empire (CBE) in recognition of his contribution to the
U.K. automotive industry.  He has advised the U.K. government in
the fields of vocational training and integrated transport.  He
received the Global CEO Grand Prize 2006 from the Korean Academy
of International Business.

Mr. Reilly serves as deputy chairman of the Seoul International
Business Advisory Council (SIBAC), is past chairman of the U.S.
National Center for Asia-Pacific Economic Cooperation (NCAPEC),
and is a member of the U.S. APEC Business Advisory Council (ABAC).

                       About General Motors

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

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

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

General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026).  General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.

The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts.  Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company.  GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel.  Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors.  GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.

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


QUELLE BAUSPARKASSE: Faces Closure; 120 Jobs Affected
-----------------------------------------------------
Holger Elfes at Bloomberg News, citing Handelsblatt, reports that
Quelle Bausparkasse AG will be closed with the loss of 120 jobs.

According to Bloomberg, the newspaper said all customer claims
will be met and the bank, which was rescued by domestic
competitors after suffering from refinancing problems, is no
longer open to new customers.

Quelle Bausparkasse AG is a home-loan bank.


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


ALLIED IRISH: May Raise Fresh Capital in First Half of 2010
----------------------------------------------------------
Dara Doyle at Bloomberg News report that Gerry Keenan, chairman of
the Irish Association of Investment Managers, said Ireland's two
largest banks, Allied Irish Banks Plc and Bank of Ireland Plc, may
try to raise fresh capital in the first half of 2010 and avoid
becoming majority owned by the state.

According to Bloomberg, the lenders may need the money after the
government buys real-estate loans from them in an effort to
cleanse their balance sheets.

Bloomberg relates Mr. Keenan said that while the state already has
a 25% stake in Allied Irish and Bank of Ireland after investing
EUR7 billion (US$10.4 billion), it's "not inevitable" that the
taxpayer will end up with a majority stake.  Mr. Keenan, as cited
by Bloomberg, said Allied Irish and Bank of Ireland will hold off
on any share sales until the government’s plan to buy the loans
progresses and the European Union rules on their restructuring
plans.

Allied Irish Banks, p.l.c., together with its subsidiaries --
http://www.aibgroup.com/-- conducts retail and commercial banking
business in Ireland.  It also provides corporate lending and
capital markets activities from its head office at Bankcentre and
from Dublin’s International Financial Services Centre.  The Group
also has overseas branches in the United States, Germany, France
and Australia, among other locations.  The business of AIB Group
is conducted through four operating divisions: AIB Bank Republic
of Ireland division, Capital Markets division, AIB Bank UK
division, and Central & Eastern Europe division.  In February
2008, the Group acquired the AmCredit mortgage business in the
Baltic states of Latvia, Lithuania and Estonia.  In September
2008, the Group also acquired a 49.99% shareholding in BACB.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 23,
2009, Fitch Ratings downgraded the individual rating of Allied
Irish Banks to 'D/E' from 'D' and removed the Rating Watch
Negative.


BANK OF IRELAND: May Raise Fresh Capital in First Half of 2010
--------------------------------------------------------------
Dara Doyle at Bloomberg News report that Gerry Keenan, chairman of
the Irish Association of Investment Managers, said Ireland's two
largest banks, Allied Irish Banks Plc and Bank of Ireland Plc, may
try to raise fresh capital in the first half of 2010 and avoid
becoming majority owned by the state.

According to Bloomberg, the lenders may need the money after the
government buys real-estate loans from them in an effort to
cleanse their balance sheets.

Bloomberg relates Mr. Keenan said that While the state already has
a 25% stake in Allied Irish and Bank of Ireland after investing
EUR7 billion (US$10.4 billion), it's "not inevitable" that the
taxpayer will end up with a majority stake.  Mr. Keenan, as cited
by Bloomberg, said Allied Irish and Bank of Ireland will hold off
on any share sales until the government’s plan to buy the loans
progresses and the European Union rules on their restructuring
plans.

Headquartered in Dublin, Bank of Ireland --
http://www.bankofireland.com/-- provides a range of banking and
other financial services.  These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor, trustee,
life assurance and pension and investment fund management, fund
administration and custodial services and financial advisory
services, including mergers and acquisitions and underwriting.
The Company organizes its businesses into Retail Republic of
Ireland, Bank of Ireland Life, Capital Markets, UK Financial
Services and Group Centre.  It has operations throughout Ireland,
the United Kingdom, Europe and the United States.


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


PARMALAT SPA: Earns EUR104 Mln in Third Quarter 2009
----------------------------------------------------
Armorel Kenna at Bloomberg News reports Parmalat SpA reported
third-quarter earnings before interest, taxes, depreciation and
amortization of EUR104 million.

Bloomberg relates the company said profitability rose almost 25%
in the first nine months on price increases and savings Parmalat
made on raw milk purchases.

According to Bloomberg, revenue for the first nine months rose
1.7% to EUR2.87 billion, while net income dropped 62% in the first
nine months after a decrease in proceeds from settlements related
to the company's 2003 bankruptcy.

                      About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The Company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200 million
in assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
January 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.


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


ASTANA FINANCE: Shares Delisted; Posts US$774 Mln Loss
------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that the Kazakhstan
Stock Exchange said it has delisted shares of AO Astana Finance
after "continued violations of listing rules".

According to Bloomberg, the Almaty-based bourse said in a
statement on its Web site Monday Astana Finance inappropriately
asked the exchange not to distribute its financial report for the
first quarter and the first half.

The company, Bloomberg says, posted a loss of KZT116.7 billion
(US$774 million) in the first nine months of the year, 27 times
its net loss for all of 2008.  The company didn't include a
comparable year-earlier figure in preliminary data submitted to
the exchange on Nov. 6, Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on Nov. 6,
2009, Astana Finance's domestic creditors rejected the bank's plan
for restructuring US$2.2 billion of debt.  Bloomberg disclosed the
Almaty-based Financial Institutions' Association of Kazakhstan
said in an e-mailed statement 20 of the bank's 35 creditors voted
against the agreement in principle reached between Astana Finance
and its foreign creditors committee.   According to Bloomberg, the
association said domestic creditors are asking Astana Finance,
which defaulted in May on US$175 million of 9% bond maturing in
2011, to provide an alternative plan.

JSC Astana Finance a.k.a Astana Finans AO (KAS:ASFI) --
http://www.af.kz/-- is a Kazakhstan-based non-banking financial
institution.  It provides leasing services of such goods as
agricultural machines and equipment, trucks and road construction
machines, utilities and special machines, aircraft and aeronautic
equipment, and rolling-stock.  It also offers microcredits and
loans, mortgages, business credits, mutual funds, insurance,
hedging, and others.  The Company has branch offices located in
Astana, Almaty and Atyrau, Kazakhstan.  As of January 1, 2009, it
operated through nine wholly owned subsidiaries, one 99.97%-owned
company and one affiliated company.  Astana Finans AO's activities
comprise the territories of Kazakhstan and the Russian Federation.


BPA INTERNATIONAL: Creditors Must File Claims by November 25
------------------------------------------------------------
LLP Bpa International Kazakhstan is currently undergoing
liquidation.  Creditors have until November 25, 2009, to submit
proofs of claim to:

         Novaya/Kok-Tobe Str. 55
         Almaty
         Kazakhstan


CAP STROY: Creditors Must File Claims by November 25
----------------------------------------------------
LLP Cap Stroy is currently undergoing liquidation.  Creditors have
until November 25, 2009, to submit proofs of claim to:

         Respublika Ave. 27/3-15
         Temirtau
         Kazakhstan


CONSTRUCTION LINE: Creditors Must File Claims by November 25
------------------------------------------------------------
LLP Construction Line is currently undergoing liquidation.
Creditors have until November 25, 2009, to submit proofs of claim
to:

         Klochkov Str. 119-33
         Almaty
         Kazakhstan


DELFIN KASPY: Creditors Must File Claims by November 25
-------------------------------------------------------
Creditors of LLP Delfin Kaspy Kazakhstan have until November 25,
2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Atyrau
         Satpaev Str. 3
         Atyrau
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
August 28, 2009.


JAIK STROY: Creditors Must File Claims by November 25
-----------------------------------------------------
LLP Jaik Stroy Bda is currently undergoing liquidation.  Creditors
have until November 25, 2009, to submit proofs of claim to:

         Abulhair Han Str. 4/1
         Chapayevo
         Akjaisky District
         West Kazakhstan
         Kazakhstan


KASPYISKAYA STROITELNAYA: Creditors Must File Claims by Nov. 25
---------------------------------------------------------------
Creditors of LLP Kaspyiskaya Stroitelnaya Companiya have until
November 25, 2009, to submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Atyrau
         Satpaev Str. 3
         Atyrau
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
August 28, 2009.


NATS DERBIS: Creditors Must File Claims by November 25
------------------------------------------------------
Creditors of LLP Nats Derbis have until November 25, 2009, to
submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of South Kazakhstan
         Tynybaev Str. 42
         Shymkent
         South Kazakhstan
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
August 14, 2009.


ORLEU S: Creditors Must File Claims by November 25
--------------------------------------------------
Creditors of LLP Orleu S have until November 25, 2009, to submit
proofs of claim to:

         Tole Bi Str. 295
         Almaty
         Kazakhstan

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


OUSHEN LLP: Creditors Must File Claims by November 25
-----------------------------------------------------
Creditors of LLP Oushen have until November 25, 2009, to submit
proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Bajov Str. 2
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
August 14, 2009.


TECHNO TRADE: Creditors Must File Claims by November 25
-------------------------------------------------------
LLP Techno Trade Plus is currently undergoing liquidation.
Creditors have until November 25, 2009, to submit proofs of claim
to:

         Korchagin Str. 127
         Rudny
         Kazakhstan


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


BLOUE STAR: Creditors Must File Claims by December 2
----------------------------------------------------
LLC Bloue Star Commerce is currently undergoing liquidation.
Creditors have until December 2, 2009, to submit proofs of claim
to:

         SEZ Bishkek
         Mir Ave. 303
         Bishkek
         Kyrgyzstan
         Tel: (+996 312)55-14-17


TECHNO BAZA: Creditors Must File Claims by December 2
-----------------------------------------------------
LLC Techno Baza is currently undergoing liquidation.  Creditors
have until December 2, 2009, to submit proofs of claim to:

         Zavodskaya Street
         Voznesenovka
         Panfilovsky District
         Chui
         Kyrgyzstan


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


SPRINGBOARD GROUP: S&P Raises Corporate Credit Rating to 'B+'
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Luxembourg-based software company Springboard Group
S.a.r.l (d/b/a Skype) to 'B+' from 'B'.  The rating outlook is
stable.

S&P also raised its issue-level rating on Springboard Finance
LLC's (a.k.a.  Skype US LLC 2) upsized proposed US$730 million
credit facility to 'B+' from 'B'.  The '4' recovery rating on this
debt, which indicates S&P's expectations of average (30% to 50%)
recovery for lenders in the event of a payment default, remains
unchanged.

The proposed credit facility would consist of a US$30 million
revolving credit facility due 2013 and a US$700 million term loan
B due 2014 (upsized from $600 million).  The company plans to use
issue proceeds to partially fund the purchase of a 65% equity
stake in Skype by an equity consortium from eBay Inc.
(A-/Positive/--).  S&P's ratings are based on preliminary
documentation and are subject to the proposed transaction closing
and a review of final documents.  Pro forma for the transaction,
Skype would have US$825 million in outstanding debt, which
includes the eBay seller pay-in-kind note.

"The ratings upgrade follows Skype's announcement that it has
reached a settlement agreement with Joltid Limited and Joost N.V.
that gives Skype ownership over all software previously licensed
from Joltid and ends all litigation currently pending against the
investor group and eBay at the closing of the acquisition," noted
Standard & Poor's credit analyst Naveen Sarma.

The 'B+' rating reflects S&P's view of rapid technology and market
evolution, a short track record at current performance levels, and
aggressive near-term leverage.  Somewhat tempering these factors,
in S&P's opinion, are Skype's significant global scale, which
provides strong network effects, and healthy free cash flow
conversion, which provides for potential deleveraging given the
credit facility's cash flow sweep feature.

Adjusted leverage, at 5.2x, pro forma for the proposed debt
financing (including the eBay seller pay-in-kind note), is
aggressive, though S&P believes the company has the ability to
quickly reduce its leverage.  If Skype were to continue on its
present growth trajectory with double-digit revenue growth, S&P
would expect the company to generate healthy amounts of free cash
flow, as capital expenditure requirements are likely modest, at
less than 5% of revenues.  The terms of its bank facility require
the company to make mandatory prepayments using its excess cash
flow.  Thus, S&P expects adjusted leverage to decline to less than
4x by the end of 2010.


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


EURO GALAXY: Moody's Confirms 'Caa3' Rating on Class E Notes
------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Euro Galaxy II CLO B.V.

  -- EUR275M Class A Senior Floating Rate Notes due 2022,
     Downgraded to Aa2; previously on Aug. 23, 2007 Definitive
     Rating Assigned Aaa

  -- EUR36M Class B Senior Floating Rate Notes due 2022,
     Downgraded to Baa2; previously on March 4, 2009 Aa2 Placed
     Under Review for Possible Downgrade

  -- EUR27.5M Class C Deferrable Interest Floating Rate Notes due
     2022, Downgraded to Ba3; previously on March 18, 2009
     Downgraded to Ba1 and Remained On Review for Possible
     Downgrade

  -- EUR20M Class D Deferrable Interest Floating Rate Notes due
     2022, Confirmed at Caa1; previously on March 18, 2009
     Downgraded to Caa1 and Remained On Review for Possible
     Downgrade

  -- EUR13.5M Class E Deferrable Interest Floating Rate Notes due
     2022, Confirmed at Caa3; previously on March 18, 2009
     Downgraded to Caa3 and Remained On Review for Possible
     Downgrade

  -- EUR5M Class P Combination Note, Downgraded to Ba3; previously
     on March 4, 2009 A1 Placed Under Review for Possible
     Downgrade

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as 13.44% exposure to mezzanine loan
obligations, second lien loans and high yield bonds.

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

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

According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed through a decline in the average credit rating as
measured through the portfolio weighted average rating factor
'WARF' (currently 2900), an increase in the amount of defaulted
securities (currently 5.42% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 8.37% of the portfolio), and a failure of some par
value tests.  These measures were taken from the recent trustee
report dated 19 October 2009.  Moody's also performed a number of
sensitivity analyses, including consideration of a further decline
in portfolio WARF quality.  Due to the impact of all the
aforementioned stresses, key model inputs used by Moody's in its
analysis, such as par, weighted average rating factor, and
weighted average recovery rate, may be different from trustee's
reported numbers.

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


FAXTOR ABS: Moody's Junks Ratings on Two Classes of Notes
---------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by FAXTOR ABS 2003-1 B.V.

  -- EUR5.5M Class BE Floating Rate Notes, Downgraded to Caa1;
     previously on Apr 23, 2009 Downgraded to B3

  -- EUR9.5M Class BF Fixed Rate Notes, Downgraded to Caa1;
     previously on Apr 23, 2009 Downgraded to B3

The transaction is a managed cashflow CDO backed mainly by
mezzanine tranches of European ABS, RMBS, CMBS, CLO and other
CDOs.  This deal has passed its reinvestment period and the
portfolio became static.

According to Moody's, the rating actions taken on the notes are a
result of credit deterioration of the underlying portfolio.  This
is observed through a decline in the average credit rating as
measured by the portfolio weighted average rating factor 'WARF'.
In the latest trustee report of 30th September 2009, the WARF is
804 compared to a WARF of 735 reported in April 2009.  Moody's
notes that the proportion of securities rated Ca and below has
increased to 3% from 0% since Moody's last review of the
transaction in April 2009.  This portfolio also has a 10.22%
portion of assets currently under review for further downgrade.
Moody's also performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality.

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


===========
P O L A N D
===========


TVN FINANCE: Moody's Assigns 'B1' Rating on EUR400 Mil. Notes
-------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1 rating
to the approximately EUR400 million new senior notes, due 2017, to
be issued by TVN Finance Corporation II A.B.  The new senior notes
will be guaranteed on a senior unsecured basis by the parent, TVN
S.A. and some of its subsidiaries.  The proceeds of the issue are
intended to be used to prepay the company's existing
EUR215 million senior notes due 2013 and its secured credit
facility (i.e. PLN109 million as of September 2009), and to shore
up liquidity.  The assigned rating assumes that there will be no
material variations to the draft legal documentation reviewed by
Moody's.  At the same time, Moody's downgraded TVN's corporate
family rating to B1 from Ba3.  Moody's also downgraded the rating
of TVN's existing EUR215 million notes to B1 from Ba3; Moody's
intends to withdraw the rating on these bonds following their
redemption with the new EUR400 million bond proceeds.  Moody's
also affirmed the company's Ba3 Probability of Default Rating.
The outlook on the ratings was changed to stable from negative.

Subsequently after the EUR400 million offering, TVN plans to issue
EUR188 million senior notes to its parent, ITI Group.  Moody's
understands that the EUR188 million notes will have the same terms
and conditions as, and rank pari passu with, the EUR400 million
notes.  The proceeds of the issue will be used to: (i) acquire the
remaining 49% stake in the "n" DTH platform; (ii) cancel the
correction payment (capped at EUR60 million) to ITI Group in 2011,
subject to the platform's performance in 2010 compared to pre-
agreed criteria; and (iii) retire ITI's shareholder loans (i.e.
EUR138 million) in "n", which have been consolidated by TVN.
Moody's understands that the completion of the acquisition is
likely to be conditional upon, amongst other things, the consent
of the lenders under the senior facility held by Strateurop
International B.V., TVN's major shareholder.  In the event that
all conditions are met, Moody's aims to assign a provisional (P)B1
rating to the EUR188 million senior notes, subject to its review
of the draft legal documentation.

The B1 CFR takes into account TVN's evolving business risk profile
towards an integrated multi-media group following the acquisition
of the remaining 49% interest in "n", which is at an early stage
of development in the highly competitive Polish DTH market, and
the level of investments required for the platform's development.
The B1 CFR also reflects the impact of the termination of TVN's
credit facility, which had through a maintenance covenant (i.e.
Net Debt/EBITDA < 3.5x) created constraints on the degree to which
leverage could be incurred by the group.  Within the new capital
structure, TVN will not have to maintain its leverage below a
specific threshold; rather, only its ability to incur new debt
will be constrained in the event Debt/EBITDA exceeds 5.5x, which
Moody's believes TVN will be at or near as of year-end 2009.

The B1 CFR also incorporates Moody's assumptions under its LGD
methodology of a below-average family recovery for all bond debt
capital structures as compared to the previous 50% recovery rate
assumption, in conjunction with the company's revised debt capital
structure with the cancellation of the credit facility.

More positively, Moody's notes that, through the EUR400 million
offering, TVN aims to: (i) address the agency's concerns in
relation to the company's liquidity profile and tightening
covenant headroom under its bank facility; and (ii) extend its
debt maturity profile.  Furthermore, the company's Net Debt (as
adjusted by Moody's) will only marginally increase following the
acquisition of the remaining 49% interest in "n".

The stable outlook reflects Moody's expectation that Debt/EBITDA
(as adjusted by Moody's and excluding one-off gain on
consolidation of associate) should improve from 5.5x, first
through stabilization and then due to some growth in the TV ad
market in Poland next year, as anticipated by management.
Furthermore, "n" should deliver EBITDA at a breakeven level in
2010.

Moody's assigns provisional ratings when the assignment of a final
rating is subject to the fulfillment of contingencies.  It is
highly likely that the rating will become definitive after all
documents are received or an obligation is issued into the market.
A provisional rating is denoted by placing a (P) in front of the
rating.

The last rating action on TVN was implemented on June 3, 2009,
when Moody's changed the outlook on the Ba3 ratings to negative
from stable.

Headquartered in Warsaw, TVN is one of the leading television
broadcasters in Poland.  TVN and its subsidiaries own and operate
11 television channels: TVN, TVN 7, TVN 24, TVN Meteo, TVN Turbo,
ITVN, TVN Style, TVN Warszawa, Telezakupy Mango 24, NTL and TVN
CNBC Biznes.  It also owns and operates Poland's leading internet
portal, Onet.pl, and currently has a 51% stake in Pay-TV DTH
operator "n".  As of December 2008, the company reported net
revenues of approximately PLN1.9 billion and EBITDA of
PLN711 million.


TVN SA: S&P Downgrades Long-Term Corporate Credit Rating to 'B+'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Poland-based private TV
broadcaster TVN S.A. to 'B+' from 'BB-'.  The outlook is stable.

At the same time, S&P affirmed its 'B+' debt ratings on the Polish
zloty (PLN) 500 million senior unsecured bonds issued by TVN S.A.
and on the EUR215 million senior unsecured bonds issued by TVN
Finance PLC -- the same level as the long-term corporate credit
rating -- reflecting the group's moderate amount of structural
priority liabilities when considering total assets, notably in
comparison with the previous capital structure.  Simultaneously,
S&P assigned its 'B+' debt rating to the new proposed
EUR588 million senior unsecured bonds to be issued by TVN Finance
Corporation II A.B., a fully-owned entity of TVN S.A.

"The downgrade follows the proposed issuance by TVN of
EUR588 million in bonds, which should improve liquidity, fund the
acquisition of the remaining 49% of direct-to-home platform "n"
that TVN didn't already own from parent company ITI Holdings, and
refinance about two-thirds of TVN's outstanding debt," said
Standard & Poor's credit analyst Melvyn Cooke.  "The rating action
reflects S&P's view that the transaction will result in a
significant increase in gross leverage and a weakening of
operating cash flows, at a time when material risks remain
regarding "n"'s ability to achieve sufficient scale and
profitability to become a viable business in the long term."

The rating action, however, also takes into consideration the
positive effects of these transactions, such as:

* The shoring up of liquidity, which was previously a major rating
  concern and which S&P now views as adequate; and

* The material increase in flexibility in setting the level of
  minimum dividend payments that TVN needs to pay to ensure debt
  service at ITI.

"The stable outlook primarily reflects S&P's expectation that
TVN's liquidity will remain adequate over the next few years
following the proposed bond issues," said Mr. Cooke.

It also reflects S&P's expectation that TVN's credit measures
following the transactions should gradually improve in the medium
term, thanks to its continuing good operating performance --
despite the economic downturn -- and owing to sustained growth at
"n".  The relatively steady economic outlook for Poland over the
next few quarters is also a stabilizing factor.  The outlook
assumes that TVN will exercise financial policy moderation until
"n" begins to meaningfully contribute to the group's profitability
and cash flows.  In particular, S&P would anticipate TVN to have a
prudent acquisition and dividend policy over the next 12 to 18
months.

In order to maintain the ratings, S&P would expect TVN's EBITDA to
grow by at least 15% to 20% in 2010 and adjusted gross leverage to
EBITDA to improve to about 4.5x in 2010.

The ratings could come under pressure if TVN's liquidity
meaningfully weakened over the next few quarters, or if the
group's operating performance and/or improvement in credit ratios
(as stated above) do not match S&P's expectations.  A financial
policy more aggressive than S&P expects, especially in terms of
acquisitions, might also result in rating pressure.

On the other hand, a significantly better than expected operating
performance, resulting in adjusted gross leverage of less than 4x
over the next few quarters could result in upward rating momentum.


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


ALFA BANK: Fitch Affirms Individual Rating at 'D'
-------------------------------------------------
Fitch Ratings has affirmed the Long-term Issuer Default Ratings of
six Russian banks: OJSC Alfa Bank at 'BB-', MDM Bank at 'BB-',
NOMOS-BANK at 'B+', Promsvyazbank at 'B+', Bank Uralsib at 'B+'
and Bank Zenit at 'B+'.  At the same time the agency has changed
the Outlook to Stable from Negative on Alfa, MDM and Nomos, while
retaining Negative Outlooks on PSB, Uralsib and Zenit.

The Stable Outlooks on Alfa, MDM and Nomos reflect these banks'
solid loss absorption capacity, partly due to new capital
injections (Alfa, Nomos) and greater transparency regarding
shareholders' ability to provide more new capital, if required
(particularly at MDM).  The Stable Outlooks also reflect the
overall recent stabilization in the Russian operating environment,
which makes further substantial deterioration in these banks'
asset quality less likely, in Fitch's view.

The Negative Outlooks on PSB, Uralsib and Zenit reflect these
banks' more moderate ability to absorb losses; greater uncertainty
regarding shareholders' ability or willingness to provide new
capital, if required; and certain aspects of the banks' risk
profiles, including a very high pre-crisis growth rate at PSB,
significant related party lending at Uralsib, and relatively high
exposure to the construction and real estate sector at Zenit.  At
the same time Fitch views the downside risk for these banks as
also having reduced in recent months due to the less negative
economic backdrop, and further stabilization of macroeconomic
indicators and individual bank asset quality trends could lead to
further Outlooks being revised back to Stable in 2010.

Although most of the aforementioned banks reported aggregate non-
performing and restructured (prolongated) loans of around 30% at
end-Q309, largely in line with Fitch's earlier sector-wide
projections (25% base case; 40% pessimistic case), the agency
notes that most impairment occurred in H109 with only moderate
additional deterioration seen in Q309.  The fact that most
restructured loans are performing, in part due to the less
negative economic backdrop, and usually enjoy improved collateral
coverage, should also help to limit banks' ultimate losses.  In
addition, some problematic loans to larger, strategically
important companies have benefited from refinancing from state-
owned banks or direct government assistance to borrowers.

Alfa's non-performing loans (more than 90 days overdue) rose to
16.9% at end-Q309 from 1.1% at January 1, 2009 and prolongated
loans were 9.8%, however, most of this increase occurred in H109
and should also be considered in the context of a 20% loan book
contraction in H109.  Fitch also acknowledges Alfa's expertise in
negotiating and managing work-outs of problem assets, which should
help to limit ultimate loan losses.  Capitalization has been
bolstered by US$320 million of equity from shareholders and US$1.3
billion of subordinated debt from Vnesheconombank in 2009, and
Fitch estimates that, based on end-Q309 local accounts adjusted
for the recent VEB sub debt contribution, the bank could have
sustained a reserves/loans ratio of about 30% before breaching
minimal capital requirements.

MDM's NPLs (more than 90 days overdue or more than 50% provided
for) grew rapidly to 14.2% at end-H109 from 4.9% at end-2008, but
this growth moderated in Q309.  Management expects NPLs to be in
the region of 15-17% by end-2009.  Restructured loans were around
14% of the loan book at end-Q309, and some of these may also
become impaired in the future.  Nevertheless, MDM's solid capital
cushion (end-Q309: 16.6% regulatory capital ratio) means it has
the capacity to increase its reserves/loans ratio to 24% from the
current 14% level.  Fitch also notes MDM's relatively high quality
of capital (mostly Tier 1) and thus significant unutilized Tier 2
capacity, and takes additional comfort from shareholder
commitments to provide up to US$500 million of additional capital
if needed.

Nomos' asset quality remains broadly in line with its peer group:
at end-Q309, loans 90 days overdue stood at 6.4% of gross loans,
while 25.7% of loans had been restructured.  The bank's loss
absorption capacity has strengthened (at end-Q309 it could
potentially withstand up to 22% of loan losses) after three
subordinated debt contributions from shareholders and VEB during
Q408-H109 at a total amount of approximately RUB17.7 billion.
Nomos has applied for an additional subordinated loan from VEB,
however the approval of this is uncertain, in Fitch's view, given
the reported depletion of funds at VEB.

PSB's NPLs (which mostly comprise loans more than 90 days overdue)
stood at 8.7% of gross loans at end-H109 (2.8% at end-2008), while
restructured loans were above the average for peer banks.  Fitch
views current capitalization levels as thin: the regulatory
capital adequacy ratio was 10.7% end-Q309, only just above the
minimum 10% level, providing capacity to increase the
reserves/loans ratio to 11.5% from the actual 10.5%.  The Basel
Total capital ratio was higher at 14% at end-H109, albeit also
offering limited headroom due to the 12% level covenanted in some
foreign borrowings.  A new equity injection, expected to be
received in Q409 from the EBRD and Commerzbank, should result in
an approximately 1.1% increase in the total capital ratio, meaning
that further support for the capital position may yet be required
should any further material deterioration in asset quality take
place.

Zenit's reported level of NPLs (defined as loans provisioned for
more than 20%) stood at a relatively moderate 5.7% at end-H109,
while loans 90 days overdue comprised 3.9% (unconsolidated) at the
same date.  At the same time, construction and real estate lending
comprises a substantial 26% of the consolidated book and many of
these exposures are long-term with bullet repayments of principal.
Although interest is currently being paid on most of these loans,
the timely repayment of principal to a significant extent relies
on the future performance of the construction sector.  The bank
has strengthened its regulatory capital position as a result of
subordinated debt received from its shareholder, the oil company
OAO Tatneft, 'BB'/Stable) in Q109 and VEB in July 2009, in each
case in the amount of RUB2.1 billion.  As a result, the regulatory
CAR at end-Q309 improved to 14.8% unconsolidated (16.3% for the
consolidated banking group), creating capacity to increase the
reserves/loans ratio to 15.1% from the actual 5.8%.

Uralsib's NPLs (defined as retail loans 90 days overdue and
corporate loans with over 50% impairment) reached 6.3% at end-H109
(end-2008: 3.6%), while the level of prolongated loans was higher
than average for the peer group.  The bank also has relatively
high exposure to related parties, standing at more than 1.1x core
capital at end-H109.  The regulatory CAR improved to 15.3% at end-
Q309, supported by a RUB6.2 billion equity injection (mostly in
the form of the bank's head office building) from the majority
shareholder in Q209; this created capacity at end-Q309 to increase
the reserves/loans ratio to 17.9% from the actual 13.2%.  Fitch
was informed that a significant part of the related party exposure
could be repaid in the near-term, and that this might also be
accompanied by a capital increase for the bank, which would be
positive for Uralsib's risk profile.

The rating actions are:

MDM Bank (OJSC)

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

OJSC Alfa-Bank

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

NOMOS-BANK

  -- Long-term IDR: affirmed at 'B+'; Outlook changed to Stable
     from Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

  -- National Long-term Rating: affirmed at 'A(rus)'; Outlook
     changed to Stable from Negative

Promsvyazbank

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

Bank Uralsib

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual Rating: affirmed at 'D'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Bank Zenit

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

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


AVANGARD-RAM: Creditors Must File Claims by November 18
-------------------------------------------------------
Creditors of LLC Avangard-Ram-Stroy (TIN 5040058486, PSRN
1035007923422) (Construction) have until November 18, 2009, to
submit proofs of claims to:

         A.Maltabar
         Insolvency Manager
         Post User Box 619
         170006 Tver
         Russia

The Arbitration Court of Moskovskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?41–7955/09.

The Debtor can be reached at:

         LLC Avangard-Ram-Stroy
         Doninskoe shosse 4
         Ramenskoe
         Moskovskaya
         Russia


BIOLAN-STROY: Creditors Must File Claims by November 18
-------------------------------------------------------
Creditors of LLC Biolan-Stroy (TIN 7701797909) (Construction) have
until November 18, 2009, to submit proofs of claims to:

         T. Ustyuzhanina
         Insolvency Manager
         Office 2
         K. Myagotina Str. 117/21
         640000 Kurgan
         Russia

The Arbitration Court of Moscow commenced bankruptcy proceedings
against the company after finding it insolvent.  The case is
docketed under Case No. ?40–342?5/08–74-109B.

The Debtor can be reached at:

         LLC Biolan-Stroy
         Building 6
         N.Basmannaya Str. 29
         Moscow
         Russia


DELANCE LTD: S&P Downgrades Corporate Credit Rating to 'SD'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on Delance Ltd., the holding company of
Russian car retailer Rolf, to 'SD' from 'CC'.

S&P also lowered to 'D' from 'C' the issue rating on the
US$250 million 8.25% notes due June 2010 issued by Colgrade Ltd.,
a finance vehicle of Delance Ltd.  At the same time, S&P withdrew
its '5' recovery rating on the notes.

The rating actions follow Colgrade Ltd.'s completion of a public
exchange offer for its outstanding notes.  S&P understands that
the majority of noteholders accepted the partial cash offer, which
resulted in cash payment of US$210 per US$1,000 of principal and
new notes with a principal amount of US$790.

The remaining noteholders, holding about 20% of the US$250 million
notes outstanding, exchanged their notes through a "Dutch auction"
at a price of between US$600 and US$800 per $1,000 of principal,
as S&P understands.  As a result, US$250 million of notes were
exchanged for about $91 million in cash and about $150 million of
new notes.

"We regard this offer as distressed under S&P's criteria and
therefore tantamount to a default," said Standard & Poor's credit
analyst Anna Stegert.  "In the coming days, S&P will reevaluate
the consolidated group's post-exchange capital structure and,
absent any new developments, S&P expects to raise its long-term
corporate credit rating on Delance Ltd. to the 'CCC' category from
'SD'."

In S&P's opinion, the corporate credit rating on Delance Ltd. will
likely remain constrained by the group's operations in the
difficult Russian car market, which carries high uncertainties
regarding the expected recovery of Russian consumers' demand for
cars.  S&P sees as a supportive rating factor the relief of the
company's liquidity position as a result of the extended maturity
profile.

S&P views Rolf's liquidity position as improved, but it remains
"weak" according to S&P's criteria, following the refinancing of
the group's bank loans and the completion of the exchange offer.
S&P understand that upon completion of the three above-mentioned
transactions, the company had about US$130 million in cash on its
balance sheet.

"We consider that the successful refinancing and execution of the
exchange offer has significantly improved the company's maturity
profile, but it is still relatively short-dated, with the majority
of debt falling due in 2011," said Ms. Stegert.  "We believe that,
currently, the group's ability to generate cash flows should be
supported by the company's plan to reduce working capital and
expansionary capital expenditures."

The issue rating on the US$250 million 8.25% notes due June 2010
issued by Colgrade Ltd. is 'D'.  S&P has withdrawn the '5'
recovery rating because the notes have been repaid.


DONSKOY SEED: Creditors Must File Claims by November 18
-------------------------------------------------------
Creditors of LLC Donskoy Seed Processing Plant (TIN 3447023204,
PSRN 1053478024599) have until November 18, 2009, to submit proofs
of claims to:

         V. Belyakov
         Insolvency Manager
         Mira Str. 151-76
         404101 Volzhskiy
         Russia

The Arbitration Court of Volgogradskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?12–6165/2009.

The Debtor can be reached at:

         LLC Donskoy Seed Processing Plant
         Ostravskaya Str.8
         400112 Volgograd
         Russia


EKODOM-STROY: Creditors Must File Claims by November 18
-------------------------------------------------------
Creditors of LLC Ekodom-Stroy (TIN 0275056897, PSRN 1060275018517)
(Construction) have until November 18, 2009, to submit proofs of
claims to:

         A. Lisitsa
         Insolvency Manager
         Post User Box 26
         450061 Ufa
         Bashkortostan
         Russia

The Arbitration Court of Bashkortostan commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. ?07–18207/2008.

The Debtor can be reached at:

         LLC Ekodom-Stroy
         Silikatnaya Str. 17
         Ufa
         450003 Bashkortostan
         Russia


BANK URALSIB: Fitch Affirms Individual Rating at 'D'
----------------------------------------------------
Fitch Ratings has affirmed the Long-term Issuer Default Ratings of
six Russian banks: OJSC Alfa Bank at 'BB-', MDM Bank at 'BB-',
NOMOS-BANK at 'B+', Promsvyazbank at 'B+', Bank Uralsib at 'B+'
and Bank Zenit at 'B+'.  At the same time the agency has changed
the Outlook to Stable from Negative on Alfa, MDM and Nomos, while
retaining Negative Outlooks on PSB, Uralsib and Zenit.

The Stable Outlooks on Alfa, MDM and Nomos reflect these banks'
solid loss absorption capacity, partly due to new capital
injections (Alfa, Nomos) and greater transparency regarding
shareholders' ability to provide more new capital, if required
(particularly at MDM).  The Stable Outlooks also reflect the
overall recent stabilization in the Russian operating environment,
which makes further substantial deterioration in these banks'
asset quality less likely, in Fitch's view.

The Negative Outlooks on PSB, Uralsib and Zenit reflect these
banks' more moderate ability to absorb losses; greater uncertainty
regarding shareholders' ability or willingness to provide new
capital, if required; and certain aspects of the banks' risk
profiles, including a very high pre-crisis growth rate at PSB,
significant related party lending at Uralsib, and relatively high
exposure to the construction and real estate sector at Zenit.  At
the same time Fitch views the downside risk for these banks as
also having reduced in recent months due to the less negative
economic backdrop, and further stabilization of macroeconomic
indicators and individual bank asset quality trends could lead to
further Outlooks being revised back to Stable in 2010.

Although most of the aforementioned banks reported aggregate non-
performing and restructured (prolongated) loans of around 30% at
end-Q309, largely in line with Fitch's earlier sector-wide
projections (25% base case; 40% pessimistic case), the agency
notes that most impairment occurred in H109 with only moderate
additional deterioration seen in Q309.  The fact that most
restructured loans are performing, in part due to the less
negative economic backdrop, and usually enjoy improved collateral
coverage, should also help to limit banks' ultimate losses.  In
addition, some problematic loans to larger, strategically
important companies have benefited from refinancing from state-
owned banks or direct government assistance to borrowers.

Alfa's non-performing loans (more than 90 days overdue) rose to
16.9% at end-Q309 from 1.1% at January 1, 2009 and prolongated
loans were 9.8%, however, most of this increase occurred in H109
and should also be considered in the context of a 20% loan book
contraction in H109.  Fitch also acknowledges Alfa's expertise in
negotiating and managing work-outs of problem assets, which should
help to limit ultimate loan losses.  Capitalization has been
bolstered by US$320 million of equity from shareholders and US$1.3
billion of subordinated debt from Vnesheconombank in 2009, and
Fitch estimates that, based on end-Q309 local accounts adjusted
for the recent VEB sub debt contribution, the bank could have
sustained a reserves/loans ratio of about 30% before breaching
minimal capital requirements.

MDM's NPLs (more than 90 days overdue or more than 50% provided
for) grew rapidly to 14.2% at end-H109 from 4.9% at end-2008, but
this growth moderated in Q309.  Management expects NPLs to be in
the region of 15-17% by end-2009.  Restructured loans were around
14% of the loan book at end-Q309, and some of these may also
become impaired in the future.  Nevertheless, MDM's solid capital
cushion (end-Q309: 16.6% regulatory capital ratio) means it has
the capacity to increase its reserves/loans ratio to 24% from the
current 14% level.  Fitch also notes MDM's relatively high quality
of capital (mostly Tier 1) and thus significant unutilized Tier 2
capacity, and takes additional comfort from shareholder
commitments to provide up to US$500 million of additional capital
if needed.

Nomos' asset quality remains broadly in line with its peer group:
at end-Q309, loans 90 days overdue stood at 6.4% of gross loans,
while 25.7% of loans had been restructured.  The bank's loss
absorption capacity has strengthened (at end-Q309 it could
potentially withstand up to 22% of loan losses) after three
subordinated debt contributions from shareholders and VEB during
Q408-H109 at a total amount of approximately RUB17.7 billion.
Nomos has applied for an additional subordinated loan from VEB,
however the approval of this is uncertain, in Fitch's view, given
the reported depletion of funds at VEB.

PSB's NPLs (which mostly comprise loans more than 90 days overdue)
stood at 8.7% of gross loans at end-H109 (2.8% at end-2008), while
restructured loans were above the average for peer banks.  Fitch
views current capitalization levels as thin: the regulatory
capital adequacy ratio was 10.7% end-Q309, only just above the
minimum 10% level, providing capacity to increase the
reserves/loans ratio to 11.5% from the actual 10.5%.  The Basel
Total capital ratio was higher at 14% at end-H109, albeit also
offering limited headroom due to the 12% level covenanted in some
foreign borrowings.  A new equity injection, expected to be
received in Q409 from the EBRD and Commerzbank, should result in
an approximately 1.1% increase in the total capital ratio, meaning
that further support for the capital position may yet be required
should any further material deterioration in asset quality take
place.

Zenit's reported level of NPLs (defined as loans provisioned for
more than 20%) stood at a relatively moderate 5.7% at end-H109,
while loans 90 days overdue comprised 3.9% (unconsolidated) at the
same date.  At the same time, construction and real estate lending
comprises a substantial 26% of the consolidated book and many of
these exposures are long-term with bullet repayments of principal.
Although interest is currently being paid on most of these loans,
the timely repayment of principal to a significant extent relies
on the future performance of the construction sector.  The bank
has strengthened its regulatory capital position as a result of
subordinated debt received from its shareholder, the oil company
OAO Tatneft, 'BB'/Stable) in Q109 and VEB in July 2009, in each
case in the amount of RUB2.1 billion.  As a result, the regulatory
CAR at end-Q309 improved to 14.8% unconsolidated (16.3% for the
consolidated banking group), creating capacity to increase the
reserves/loans ratio to 15.1% from the actual 5.8%.

Uralsib's NPLs (defined as retail loans 90 days overdue and
corporate loans with over 50% impairment) reached 6.3% at end-H109
(end-2008: 3.6%), while the level of prolongated loans was higher
than average for the peer group.  The bank also has relatively
high exposure to related parties, standing at more than 1.1x core
capital at end-H109.  The regulatory CAR improved to 15.3% at end-
Q309, supported by a RUB6.2 billion equity injection (mostly in
the form of the bank's head office building) from the majority
shareholder in Q209; this created capacity at end-Q309 to increase
the reserves/loans ratio to 17.9% from the actual 13.2%.  Fitch
was informed that a significant part of the related party exposure
could be repaid in the near-term, and that this might also be
accompanied by a capital increase for the bank, which would be
positive for Uralsib's risk profile.

The rating actions are:

MDM Bank (OJSC)

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

OJSC Alfa-Bank

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

NOMOS-BANK

  -- Long-term IDR: affirmed at 'B+'; Outlook changed to Stable
     from Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

  -- National Long-term Rating: affirmed at 'A(rus)'; Outlook
     changed to Stable from Negative

Promsvyazbank

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

Bank Uralsib

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual Rating: affirmed at 'D'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Bank Zenit

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

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


BANK ZENIT: Fitch Affirms Individual Rating at 'D'
--------------------------------------------------
Fitch Ratings has affirmed the Long-term Issuer Default Ratings of
six Russian banks: OJSC Alfa Bank at 'BB-', MDM Bank at 'BB-',
NOMOS-BANK at 'B+', Promsvyazbank at 'B+', Bank Uralsib at 'B+'
and Bank Zenit at 'B+'.  At the same time the agency has changed
the Outlook to Stable from Negative on Alfa, MDM and Nomos, while
retaining Negative Outlooks on PSB, Uralsib and Zenit.

The Stable Outlooks on Alfa, MDM and Nomos reflect these banks'
solid loss absorption capacity, partly due to new capital
injections (Alfa, Nomos) and greater transparency regarding
shareholders' ability to provide more new capital, if required
(particularly at MDM).  The Stable Outlooks also reflect the
overall recent stabilization in the Russian operating environment,
which makes further substantial deterioration in these banks'
asset quality less likely, in Fitch's view.

The Negative Outlooks on PSB, Uralsib and Zenit reflect these
banks' more moderate ability to absorb losses; greater uncertainty
regarding shareholders' ability or willingness to provide new
capital, if required; and certain aspects of the banks' risk
profiles, including a very high pre-crisis growth rate at PSB,
significant related party lending at Uralsib, and relatively high
exposure to the construction and real estate sector at Zenit.  At
the same time Fitch views the downside risk for these banks as
also having reduced in recent months due to the less negative
economic backdrop, and further stabilization of macroeconomic
indicators and individual bank asset quality trends could lead to
further Outlooks being revised back to Stable in 2010.

Although most of the aforementioned banks reported aggregate non-
performing and restructured (prolongated) loans of around 30% at
end-Q309, largely in line with Fitch's earlier sector-wide
projections (25% base case; 40% pessimistic case), the agency
notes that most impairment occurred in H109 with only moderate
additional deterioration seen in Q309.  The fact that most
restructured loans are performing, in part due to the less
negative economic backdrop, and usually enjoy improved collateral
coverage, should also help to limit banks' ultimate losses.  In
addition, some problematic loans to larger, strategically
important companies have benefited from refinancing from state-
owned banks or direct government assistance to borrowers.

Alfa's non-performing loans (more than 90 days overdue) rose to
16.9% at end-Q309 from 1.1% at January 1, 2009 and prolongated
loans were 9.8%, however, most of this increase occurred in H109
and should also be considered in the context of a 20% loan book
contraction in H109.  Fitch also acknowledges Alfa's expertise in
negotiating and managing work-outs of problem assets, which should
help to limit ultimate loan losses.  Capitalization has been
bolstered by US$320 million of equity from shareholders and US$1.3
billion of subordinated debt from Vnesheconombank in 2009, and
Fitch estimates that, based on end-Q309 local accounts adjusted
for the recent VEB sub debt contribution, the bank could have
sustained a reserves/loans ratio of about 30% before breaching
minimal capital requirements.

MDM's NPLs (more than 90 days overdue or more than 50% provided
for) grew rapidly to 14.2% at end-H109 from 4.9% at end-2008, but
this growth moderated in Q309.  Management expects NPLs to be in
the region of 15-17% by end-2009.  Restructured loans were around
14% of the loan book at end-Q309, and some of these may also
become impaired in the future.  Nevertheless, MDM's solid capital
cushion (end-Q309: 16.6% regulatory capital ratio) means it has
the capacity to increase its reserves/loans ratio to 24% from the
current 14% level.  Fitch also notes MDM's relatively high quality
of capital (mostly Tier 1) and thus significant unutilized Tier 2
capacity, and takes additional comfort from shareholder
commitments to provide up to US$500 million of additional capital
if needed.

Nomos' asset quality remains broadly in line with its peer group:
at end-Q309, loans 90 days overdue stood at 6.4% of gross loans,
while 25.7% of loans had been restructured.  The bank's loss
absorption capacity has strengthened (at end-Q309 it could
potentially withstand up to 22% of loan losses) after three
subordinated debt contributions from shareholders and VEB during
Q408-H109 at a total amount of approximately RUB17.7 billion.
Nomos has applied for an additional subordinated loan from VEB,
however the approval of this is uncertain, in Fitch's view, given
the reported depletion of funds at VEB.

PSB's NPLs (which mostly comprise loans more than 90 days overdue)
stood at 8.7% of gross loans at end-H109 (2.8% at end-2008), while
restructured loans were above the average for peer banks.  Fitch
views current capitalization levels as thin: the regulatory
capital adequacy ratio was 10.7% end-Q309, only just above the
minimum 10% level, providing capacity to increase the
reserves/loans ratio to 11.5% from the actual 10.5%.  The Basel
Total capital ratio was higher at 14% at end-H109, albeit also
offering limited headroom due to the 12% level covenanted in some
foreign borrowings.  A new equity injection, expected to be
received in Q409 from the EBRD and Commerzbank, should result in
an approximately 1.1% increase in the total capital ratio, meaning
that further support for the capital position may yet be required
should any further material deterioration in asset quality take
place.

Zenit's reported level of NPLs (defined as loans provisioned for
more than 20%) stood at a relatively moderate 5.7% at end-H109,
while loans 90 days overdue comprised 3.9% (unconsolidated) at the
same date.  At the same time, construction and real estate lending
comprises a substantial 26% of the consolidated book and many of
these exposures are long-term with bullet repayments of principal.
Although interest is currently being paid on most of these loans,
the timely repayment of principal to a significant extent relies
on the future performance of the construction sector.  The bank
has strengthened its regulatory capital position as a result of
subordinated debt received from its shareholder, the oil company
OAO Tatneft, 'BB'/Stable) in Q109 and VEB in July 2009, in each
case in the amount of RUB2.1 billion.  As a result, the regulatory
CAR at end-Q309 improved to 14.8% unconsolidated (16.3% for the
consolidated banking group), creating capacity to increase the
reserves/loans ratio to 15.1% from the actual 5.8%.

Uralsib's NPLs (defined as retail loans 90 days overdue and
corporate loans with over 50% impairment) reached 6.3% at end-H109
(end-2008: 3.6%), while the level of prolongated loans was higher
than average for the peer group.  The bank also has relatively
high exposure to related parties, standing at more than 1.1x core
capital at end-H109.  The regulatory CAR improved to 15.3% at end-
Q309, supported by a RUB6.2 billion equity injection (mostly in
the form of the bank's head office building) from the majority
shareholder in Q209; this created capacity at end-Q309 to increase
the reserves/loans ratio to 17.9% from the actual 13.2%.  Fitch
was informed that a significant part of the related party exposure
could be repaid in the near-term, and that this might also be
accompanied by a capital increase for the bank, which would be
positive for Uralsib's risk profile.

The rating actions are:

MDM Bank (OJSC)

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

OJSC Alfa-Bank

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

NOMOS-BANK

  -- Long-term IDR: affirmed at 'B+'; Outlook changed to Stable
     from Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

  -- National Long-term Rating: affirmed at 'A(rus)'; Outlook
     changed to Stable from Negative

Promsvyazbank

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

Bank Uralsib

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual Rating: affirmed at 'D'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Bank Zenit

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

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


MDM BANK: Fitch Affirms Individual Rating at 'D'
------------------------------------------------
Fitch Ratings has affirmed the Long-term Issuer Default Ratings of
six Russian banks: OJSC Alfa Bank at 'BB-', MDM Bank at 'BB-',
NOMOS-BANK at 'B+', Promsvyazbank at 'B+', Bank Uralsib at 'B+'
and Bank Zenit at 'B+'.  At the same time the agency has changed
the Outlook to Stable from Negative on Alfa, MDM and Nomos, while
retaining Negative Outlooks on PSB, Uralsib and Zenit.

The Stable Outlooks on Alfa, MDM and Nomos reflect these banks'
solid loss absorption capacity, partly due to new capital
injections (Alfa, Nomos) and greater transparency regarding
shareholders' ability to provide more new capital, if required
(particularly at MDM).  The Stable Outlooks also reflect the
overall recent stabilization in the Russian operating environment,
which makes further substantial deterioration in these banks'
asset quality less likely, in Fitch's view.

The Negative Outlooks on PSB, Uralsib and Zenit reflect these
banks' more moderate ability to absorb losses; greater uncertainty
regarding shareholders' ability or willingness to provide new
capital, if required; and certain aspects of the banks' risk
profiles, including a very high pre-crisis growth rate at PSB,
significant related party lending at Uralsib, and relatively high
exposure to the construction and real estate sector at Zenit.  At
the same time Fitch views the downside risk for these banks as
also having reduced in recent months due to the less negative
economic backdrop, and further stabilization of macroeconomic
indicators and individual bank asset quality trends could lead to
further Outlooks being revised back to Stable in 2010.

Although most of the aforementioned banks reported aggregate non-
performing and restructured (prolongated) loans of around 30% at
end-Q309, largely in line with Fitch's earlier sector-wide
projections (25% base case; 40% pessimistic case), the agency
notes that most impairment occurred in H109 with only moderate
additional deterioration seen in Q309.  The fact that most
restructured loans are performing, in part due to the less
negative economic backdrop, and usually enjoy improved collateral
coverage, should also help to limit banks' ultimate losses.  In
addition, some problematic loans to larger, strategically
important companies have benefited from refinancing from state-
owned banks or direct government assistance to borrowers.

Alfa's non-performing loans (more than 90 days overdue) rose to
16.9% at end-Q309 from 1.1% at January 1, 2009 and prolongated
loans were 9.8%, however, most of this increase occurred in H109
and should also be considered in the context of a 20% loan book
contraction in H109.  Fitch also acknowledges Alfa's expertise in
negotiating and managing work-outs of problem assets, which should
help to limit ultimate loan losses.  Capitalization has been
bolstered by US$320 million of equity from shareholders and US$1.3
billion of subordinated debt from Vnesheconombank in 2009, and
Fitch estimates that, based on end-Q309 local accounts adjusted
for the recent VEB sub debt contribution, the bank could have
sustained a reserves/loans ratio of about 30% before breaching
minimal capital requirements.

MDM's NPLs (more than 90 days overdue or more than 50% provided
for) grew rapidly to 14.2% at end-H109 from 4.9% at end-2008, but
this growth moderated in Q309.  Management expects NPLs to be in
the region of 15-17% by end-2009.  Restructured loans were around
14% of the loan book at end-Q309, and some of these may also
become impaired in the future.  Nevertheless, MDM's solid capital
cushion (end-Q309: 16.6% regulatory capital ratio) means it has
the capacity to increase its reserves/loans ratio to 24% from the
current 14% level.  Fitch also notes MDM's relatively high quality
of capital (mostly Tier 1) and thus significant unutilized Tier 2
capacity, and takes additional comfort from shareholder
commitments to provide up to US$500 million of additional capital
if needed.

Nomos' asset quality remains broadly in line with its peer group:
at end-Q309, loans 90 days overdue stood at 6.4% of gross loans,
while 25.7% of loans had been restructured.  The bank's loss
absorption capacity has strengthened (at end-Q309 it could
potentially withstand up to 22% of loan losses) after three
subordinated debt contributions from shareholders and VEB during
Q408-H109 at a total amount of approximately RUB17.7 billion.
Nomos has applied for an additional subordinated loan from VEB,
however the approval of this is uncertain, in Fitch's view, given
the reported depletion of funds at VEB.

PSB's NPLs (which mostly comprise loans more than 90 days overdue)
stood at 8.7% of gross loans at end-H109 (2.8% at end-2008), while
restructured loans were above the average for peer banks.  Fitch
views current capitalization levels as thin: the regulatory
capital adequacy ratio was 10.7% end-Q309, only just above the
minimum 10% level, providing capacity to increase the
reserves/loans ratio to 11.5% from the actual 10.5%.  The Basel
Total capital ratio was higher at 14% at end-H109, albeit also
offering limited headroom due to the 12% level covenanted in some
foreign borrowings.  A new equity injection, expected to be
received in Q409 from the EBRD and Commerzbank, should result in
an approximately 1.1% increase in the total capital ratio, meaning
that further support for the capital position may yet be required
should any further material deterioration in asset quality take
place.

Zenit's reported level of NPLs (defined as loans provisioned for
more than 20%) stood at a relatively moderate 5.7% at end-H109,
while loans 90 days overdue comprised 3.9% (unconsolidated) at the
same date.  At the same time, construction and real estate lending
comprises a substantial 26% of the consolidated book and many of
these exposures are long-term with bullet repayments of principal.
Although interest is currently being paid on most of these loans,
the timely repayment of principal to a significant extent relies
on the future performance of the construction sector.  The bank
has strengthened its regulatory capital position as a result of
subordinated debt received from its shareholder, the oil company
OAO Tatneft, 'BB'/Stable) in Q109 and VEB in July 2009, in each
case in the amount of RUB2.1 billion.  As a result, the regulatory
CAR at end-Q309 improved to 14.8% unconsolidated (16.3% for the
consolidated banking group), creating capacity to increase the
reserves/loans ratio to 15.1% from the actual 5.8%.

Uralsib's NPLs (defined as retail loans 90 days overdue and
corporate loans with over 50% impairment) reached 6.3% at end-H109
(end-2008: 3.6%), while the level of prolongated loans was higher
than average for the peer group.  The bank also has relatively
high exposure to related parties, standing at more than 1.1x core
capital at end-H109.  The regulatory CAR improved to 15.3% at end-
Q309, supported by a RUB6.2 billion equity injection (mostly in
the form of the bank's head office building) from the majority
shareholder in Q209; this created capacity at end-Q309 to increase
the reserves/loans ratio to 17.9% from the actual 13.2%.  Fitch
was informed that a significant part of the related party exposure
could be repaid in the near-term, and that this might also be
accompanied by a capital increase for the bank, which would be
positive for Uralsib's risk profile.

The rating actions are:

MDM Bank (OJSC)

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

OJSC Alfa-Bank

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

NOMOS-BANK

  -- Long-term IDR: affirmed at 'B+'; Outlook changed to Stable
     from Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

  -- National Long-term Rating: affirmed at 'A(rus)'; Outlook
     changed to Stable from Negative

Promsvyazbank

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

Bank Uralsib

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual Rating: affirmed at 'D'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Bank Zenit

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

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


NOMOS-BANK: Fitch Affirms Individual Rating at 'D'
--------------------------------------------------
Fitch Ratings has affirmed the Long-term Issuer Default Ratings of
six Russian banks: OJSC Alfa Bank at 'BB-', MDM Bank at 'BB-',
NOMOS-BANK at 'B+', Promsvyazbank at 'B+', Bank Uralsib at 'B+'
and Bank Zenit at 'B+'.  At the same time the agency has changed
the Outlook to Stable from Negative on Alfa, MDM and Nomos, while
retaining Negative Outlooks on PSB, Uralsib and Zenit.

The Stable Outlooks on Alfa, MDM and Nomos reflect these banks'
solid loss absorption capacity, partly due to new capital
injections (Alfa, Nomos) and greater transparency regarding
shareholders' ability to provide more new capital, if required
(particularly at MDM).  The Stable Outlooks also reflect the
overall recent stabilization in the Russian operating environment,
which makes further substantial deterioration in these banks'
asset quality less likely, in Fitch's view.

The Negative Outlooks on PSB, Uralsib and Zenit reflect these
banks' more moderate ability to absorb losses; greater uncertainty
regarding shareholders' ability or willingness to provide new
capital, if required; and certain aspects of the banks' risk
profiles, including a very high pre-crisis growth rate at PSB,
significant related party lending at Uralsib, and relatively high
exposure to the construction and real estate sector at Zenit.  At
the same time Fitch views the downside risk for these banks as
also having reduced in recent months due to the less negative
economic backdrop, and further stabilization of macroeconomic
indicators and individual bank asset quality trends could lead to
further Outlooks being revised back to Stable in 2010.

Although most of the aforementioned banks reported aggregate non-
performing and restructured (prolongated) loans of around 30% at
end-Q309, largely in line with Fitch's earlier sector-wide
projections (25% base case; 40% pessimistic case), the agency
notes that most impairment occurred in H109 with only moderate
additional deterioration seen in Q309.  The fact that most
restructured loans are performing, in part due to the less
negative economic backdrop, and usually enjoy improved collateral
coverage, should also help to limit banks' ultimate losses.  In
addition, some problematic loans to larger, strategically
important companies have benefited from refinancing from state-
owned banks or direct government assistance to borrowers.

Alfa's non-performing loans (more than 90 days overdue) rose to
16.9% at end-Q309 from 1.1% at January 1, 2009 and prolongated
loans were 9.8%, however, most of this increase occurred in H109
and should also be considered in the context of a 20% loan book
contraction in H109.  Fitch also acknowledges Alfa's expertise in
negotiating and managing work-outs of problem assets, which should
help to limit ultimate loan losses.  Capitalization has been
bolstered by US$320 million of equity from shareholders and US$1.3
billion of subordinated debt from Vnesheconombank in 2009, and
Fitch estimates that, based on end-Q309 local accounts adjusted
for the recent VEB sub debt contribution, the bank could have
sustained a reserves/loans ratio of about 30% before breaching
minimal capital requirements.

MDM's NPLs (more than 90 days overdue or more than 50% provided
for) grew rapidly to 14.2% at end-H109 from 4.9% at end-2008, but
this growth moderated in Q309.  Management expects NPLs to be in
the region of 15-17% by end-2009.  Restructured loans were around
14% of the loan book at end-Q309, and some of these may also
become impaired in the future.  Nevertheless, MDM's solid capital
cushion (end-Q309: 16.6% regulatory capital ratio) means it has
the capacity to increase its reserves/loans ratio to 24% from the
current 14% level.  Fitch also notes MDM's relatively high quality
of capital (mostly Tier 1) and thus significant unutilized Tier 2
capacity, and takes additional comfort from shareholder
commitments to provide up to US$500 million of additional capital
if needed.

Nomos' asset quality remains broadly in line with its peer group:
at end-Q309, loans 90 days overdue stood at 6.4% of gross loans,
while 25.7% of loans had been restructured.  The bank's loss
absorption capacity has strengthened (at end-Q309 it could
potentially withstand up to 22% of loan losses) after three
subordinated debt contributions from shareholders and VEB during
Q408-H109 at a total amount of approximately RUB17.7 billion.
Nomos has applied for an additional subordinated loan from VEB,
however the approval of this is uncertain, in Fitch's view, given
the reported depletion of funds at VEB.

PSB's NPLs (which mostly comprise loans more than 90 days overdue)
stood at 8.7% of gross loans at end-H109 (2.8% at end-2008), while
restructured loans were above the average for peer banks.  Fitch
views current capitalization levels as thin: the regulatory
capital adequacy ratio was 10.7% end-Q309, only just above the
minimum 10% level, providing capacity to increase the
reserves/loans ratio to 11.5% from the actual 10.5%.  The Basel
Total capital ratio was higher at 14% at end-H109, albeit also
offering limited headroom due to the 12% level covenanted in some
foreign borrowings.  A new equity injection, expected to be
received in Q409 from the EBRD and Commerzbank, should result in
an approximately 1.1% increase in the total capital ratio, meaning
that further support for the capital position may yet be required
should any further material deterioration in asset quality take
place.

Zenit's reported level of NPLs (defined as loans provisioned for
more than 20%) stood at a relatively moderate 5.7% at end-H109,
while loans 90 days overdue comprised 3.9% (unconsolidated) at the
same date.  At the same time, construction and real estate lending
comprises a substantial 26% of the consolidated book and many of
these exposures are long-term with bullet repayments of principal.
Although interest is currently being paid on most of these loans,
the timely repayment of principal to a significant extent relies
on the future performance of the construction sector.  The bank
has strengthened its regulatory capital position as a result of
subordinated debt received from its shareholder, the oil company
OAO Tatneft, 'BB'/Stable) in Q109 and VEB in July 2009, in each
case in the amount of RUB2.1 billion.  As a result, the regulatory
CAR at end-Q309 improved to 14.8% unconsolidated (16.3% for the
consolidated banking group), creating capacity to increase the
reserves/loans ratio to 15.1% from the actual 5.8%.

Uralsib's NPLs (defined as retail loans 90 days overdue and
corporate loans with over 50% impairment) reached 6.3% at end-H109
(end-2008: 3.6%), while the level of prolongated loans was higher
than average for the peer group.  The bank also has relatively
high exposure to related parties, standing at more than 1.1x core
capital at end-H109.  The regulatory CAR improved to 15.3% at end-
Q309, supported by a RUB6.2 billion equity injection (mostly in
the form of the bank's head office building) from the majority
shareholder in Q209; this created capacity at end-Q309 to increase
the reserves/loans ratio to 17.9% from the actual 13.2%.  Fitch
was informed that a significant part of the related party exposure
could be repaid in the near-term, and that this might also be
accompanied by a capital increase for the bank, which would be
positive for Uralsib's risk profile.

The rating actions are:

MDM Bank (OJSC)

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

OJSC Alfa-Bank

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

NOMOS-BANK

  -- Long-term IDR: affirmed at 'B+'; Outlook changed to Stable
     from Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

  -- National Long-term Rating: affirmed at 'A(rus)'; Outlook
     changed to Stable from Negative

Promsvyazbank

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

Bank Uralsib

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual Rating: affirmed at 'D'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Bank Zenit

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

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


PROMSVYAZBANK: Fitch Affirms Individual Rating at 'D'
-----------------------------------------------------
Fitch Ratings has affirmed the Long-term Issuer Default Ratings of
six Russian banks: OJSC Alfa Bank at 'BB-', MDM Bank at 'BB-',
NOMOS-BANK at 'B+', Promsvyazbank at 'B+', Bank Uralsib at 'B+'
and Bank Zenit at 'B+'.  At the same time the agency has changed
the Outlook to Stable from Negative on Alfa, MDM and Nomos, while
retaining Negative Outlooks on PSB, Uralsib and Zenit.

The Stable Outlooks on Alfa, MDM and Nomos reflect these banks'
solid loss absorption capacity, partly due to new capital
injections (Alfa, Nomos) and greater transparency regarding
shareholders' ability to provide more new capital, if required
(particularly at MDM).  The Stable Outlooks also reflect the
overall recent stabilization in the Russian operating environment,
which makes further substantial deterioration in these banks'
asset quality less likely, in Fitch's view.

The Negative Outlooks on PSB, Uralsib and Zenit reflect these
banks' more moderate ability to absorb losses; greater uncertainty
regarding shareholders' ability or willingness to provide new
capital, if required; and certain aspects of the banks' risk
profiles, including a very high pre-crisis growth rate at PSB,
significant related party lending at Uralsib, and relatively high
exposure to the construction and real estate sector at Zenit.  At
the same time Fitch views the downside risk for these banks as
also having reduced in recent months due to the less negative
economic backdrop, and further stabilization of macroeconomic
indicators and individual bank asset quality trends could lead to
further Outlooks being revised back to Stable in 2010.

Although most of the aforementioned banks reported aggregate non-
performing and restructured (prolongated) loans of around 30% at
end-Q309, largely in line with Fitch's earlier sector-wide
projections (25% base case; 40% pessimistic case), the agency
notes that most impairment occurred in H109 with only moderate
additional deterioration seen in Q309.  The fact that most
restructured loans are performing, in part due to the less
negative economic backdrop, and usually enjoy improved collateral
coverage, should also help to limit banks' ultimate losses.  In
addition, some problematic loans to larger, strategically
important companies have benefited from refinancing from state-
owned banks or direct government assistance to borrowers.

Alfa's non-performing loans (more than 90 days overdue) rose to
16.9% at end-Q309 from 1.1% at January 1, 2009 and prolongated
loans were 9.8%, however, most of this increase occurred in H109
and should also be considered in the context of a 20% loan book
contraction in H109.  Fitch also acknowledges Alfa's expertise in
negotiating and managing work-outs of problem assets, which should
help to limit ultimate loan losses.  Capitalization has been
bolstered by US$320 million of equity from shareholders and US$1.3
billion of subordinated debt from Vnesheconombank in 2009, and
Fitch estimates that, based on end-Q309 local accounts adjusted
for the recent VEB sub debt contribution, the bank could have
sustained a reserves/loans ratio of about 30% before breaching
minimal capital requirements.

MDM's NPLs (more than 90 days overdue or more than 50% provided
for) grew rapidly to 14.2% at end-H109 from 4.9% at end-2008, but
this growth moderated in Q309.  Management expects NPLs to be in
the region of 15-17% by end-2009.  Restructured loans were around
14% of the loan book at end-Q309, and some of these may also
become impaired in the future.  Nevertheless, MDM's solid capital
cushion (end-Q309: 16.6% regulatory capital ratio) means it has
the capacity to increase its reserves/loans ratio to 24% from the
current 14% level.  Fitch also notes MDM's relatively high quality
of capital (mostly Tier 1) and thus significant unutilized Tier 2
capacity, and takes additional comfort from shareholder
commitments to provide up to US$500 million of additional capital
if needed.

Nomos' asset quality remains broadly in line with its peer group:
at end-Q309, loans 90 days overdue stood at 6.4% of gross loans,
while 25.7% of loans had been restructured.  The bank's loss
absorption capacity has strengthened (at end-Q309 it could
potentially withstand up to 22% of loan losses) after three
subordinated debt contributions from shareholders and VEB during
Q408-H109 at a total amount of approximately RUB17.7 billion.
Nomos has applied for an additional subordinated loan from VEB,
however the approval of this is uncertain, in Fitch's view, given
the reported depletion of funds at VEB.

PSB's NPLs (which mostly comprise loans more than 90 days overdue)
stood at 8.7% of gross loans at end-H109 (2.8% at end-2008), while
restructured loans were above the average for peer banks.  Fitch
views current capitalization levels as thin: the regulatory
capital adequacy ratio was 10.7% end-Q309, only just above the
minimum 10% level, providing capacity to increase the
reserves/loans ratio to 11.5% from the actual 10.5%.  The Basel
Total capital ratio was higher at 14% at end-H109, albeit also
offering limited headroom due to the 12% level covenanted in some
foreign borrowings.  A new equity injection, expected to be
received in Q409 from the EBRD and Commerzbank, should result in
an approximately 1.1% increase in the total capital ratio, meaning
that further support for the capital position may yet be required
should any further material deterioration in asset quality take
place.

Zenit's reported level of NPLs (defined as loans provisioned for
more than 20%) stood at a relatively moderate 5.7% at end-H109,
while loans 90 days overdue comprised 3.9% (unconsolidated) at the
same date.  At the same time, construction and real estate lending
comprises a substantial 26% of the consolidated book and many of
these exposures are long-term with bullet repayments of principal.
Although interest is currently being paid on most of these loans,
the timely repayment of principal to a significant extent relies
on the future performance of the construction sector.  The bank
has strengthened its regulatory capital position as a result of
subordinated debt received from its shareholder, the oil company
OAO Tatneft, 'BB'/Stable) in Q109 and VEB in July 2009, in each
case in the amount of RUB2.1 billion.  As a result, the regulatory
CAR at end-Q309 improved to 14.8% unconsolidated (16.3% for the
consolidated banking group), creating capacity to increase the
reserves/loans ratio to 15.1% from the actual 5.8%.

Uralsib's NPLs (defined as retail loans 90 days overdue and
corporate loans with over 50% impairment) reached 6.3% at end-H109
(end-2008: 3.6%), while the level of prolongated loans was higher
than average for the peer group.  The bank also has relatively
high exposure to related parties, standing at more than 1.1x core
capital at end-H109.  The regulatory CAR improved to 15.3% at end-
Q309, supported by a RUB6.2 billion equity injection (mostly in
the form of the bank's head office building) from the majority
shareholder in Q209; this created capacity at end-Q309 to increase
the reserves/loans ratio to 17.9% from the actual 13.2%.  Fitch
was informed that a significant part of the related party exposure
could be repaid in the near-term, and that this might also be
accompanied by a capital increase for the bank, which would be
positive for Uralsib's risk profile.

The rating actions are:

MDM Bank (OJSC)

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

OJSC Alfa-Bank

  -- Long-term IDR: affirmed at 'BB-' (BB minus); Outlook changed
     to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BB-' (BB minus)

  -- Subordinated debt: affirmed at 'B+'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'A+(rus)'; Outlook
     changed to Stable from Negative

NOMOS-BANK

  -- Long-term IDR: affirmed at 'B+'; Outlook changed to Stable
     from Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'B-' (B minus)

  -- National Long-term Rating: affirmed at 'A(rus)'; Outlook
     changed to Stable from Negative

Promsvyazbank

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
     'RR4'

  -- Subordinated debt: affirmed at 'B-' (B minus); Recovery
     Rating at 'RR6'

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B'

Bank Uralsib

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative
  -- Short-term IDR: affirmed at 'B'
  -- Individual Rating: affirmed at 'D'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

Bank Zenit

  -- Long-term IDR: affirmed at 'B+'; Outlook Negative

  -- Short-term IDR: affirmed at 'B'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'No Floor'

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


RUSSIAN STANDARD: Fitch Affirms Individual Rating at 'D'
--------------------------------------------------------
Fitch Ratings has downgraded Russian Standard Bank's Long-term
Issuer Default Rating to 'B+' from 'BB-' and affirmed other
ratings at Short-term IDR 'B', Support '5', Individual 'D' and
Support Rating Floor 'No Floor'.  The Outlook for the Long-term
IDR is Negative.

The downgrade and Negative Outlook reflect growing uncertainties
about the bank's future business model and longer-term credit
profile in view of already occurred (32% over the course of 2008
and H109) and potential further unwinding of the loan book, as a
significant portion of cash generated from loan repayments is used
to meet debt maturities.  Should the loan book continue to
decrease this may have further negative implications for
profitability, as well as franchise, in Fitch's view.

At the same time, the agency notes that short-term risks for RSB
are limited, given: effective credit risk controls (for new loans
generated in 2009 the expected NPL ratio is around 3%, but the
average loss rate for 2009 is likely to be higher due to somewhat
worse performance of previous loan generations and a declining
loan book); the solid capital position, which is sufficient to
absorb a sizeable increase in loan impairment; and the liquid
balance sheet (monthly loan amortizations amount to about US$200m)
which, coupled with the availability of unsecured Central Bank
funding, should enable the bank to comfortably fulfil its 2010
wholesale debt repayments.  Should RSB be able to stabilize its
business by improving funding access while demonstrating
sustainable profitability, the Outlook could be revised back to
Stable.

Management aims to preserve the loan portfolio at the current
level in 2010, although this would probably require at least
partial refinancing of about US$750 million of maturing foreign
obligations.  Alternatively, RSB may seek to further draw from the
CBR's credit lines (unpledged securities eligible for CBR
refinancing amounted to RUB14.7 billion at November 1, 2009, while
the unutilized unsecured limit was also significant).  Although
Fitch does not expect the CBR to withdraw its funding from RSB in
a way which could jeopardize the bank's liquidity, the longer-term
reliability of this funding source is rather questionable.

While the increase in hedging and credit costs, and the resulting
net loss of RUB5 billion, in H109 could be temporary, higher
funding costs and lower efficiency (due to a smaller scale) are
likely to exert more permanent pressure on the bank's performance,
in Fitch's view.  The reduction in high-margin point-of-sale loans
may also hamper the cross-selling of credit cards -- now the
bank's major lending product -- as these are issued to customers
with positive POS credit histories, while also resulting in a
lower average lending rate on the residual loan book (due to
slower amortization of lower-margin cash and car loans).  However,
RSB is planning to gradually shift the underwriting of credit
cards from being mostly POS-driven to become more transaction-
based, in line with the bank's revised long-term strategy of
developing deposit-taking and settlement services.

Despite the loss in H109, capitalization remains strong.  End-H109
Basel I total and tier 1 ratios, were at 28.4% and 20.1%,
respectively, supported by loan book contraction.  RSB expects
H209 to be profitable, with the possibility that reserves might be
partially released.  Overall, RSB's loss absorption capacity (in
particular after a RUB5 billion subordinated loan received from
Vnesheconombank in October 2009) is strong, allowing it to
withstand up to around 30% of potential credit losses.

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.


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


CAMPOFRIO FOOD: S&P Raises Corporate Credit Rating to 'B+'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
long-term corporate credit rating to 'B+' from 'B' on Spain-based
CampoFrio Food Group S.A., a leader in the European processed meat
market.  S&P has also removed the rating from CreditWatch, where
it was placed with positive implications on Oct. 20, 2009, when
S&P first assigned ratings to CFG.  The outlook is stable.

At the same time, S&P has assigned a 'B+' long-term debt rating to
CFG's new EUR500 million unsecured bond maturing in October 2016
and its EUR55 million two-year unsecured revolving credit
facility.  The recovery rating on both instruments is '4',
indicating S&P's expectation of average (30%-50%) recovery for
bondholders and RCF lenders in the event of a payment default.
Ratings have been assigned following receipt and satisfactory
review of all final transaction documentation.

The upgrade reflects CFG's successful completion of its
EUR500 million bond issue, which is unsecured and has a bullet
maturity on Oct. 31, 2016.

"CFG has used the bond proceeds to repay its amortizing U.S.
private placements and amortizing leveraged buyout debt, thereby
improving its debt maturity profile," said Standard & Poor's
credit analyst Florence Devevey.  "The upgrade also follows the
company's successful closing out of an offsetting swap contract,
which crystallized the mark-to-market liability of CFG's out-of-
the-money cross-currency swap related to its former U.S. private
placements."

The corporate credit rating remains constrained by CFG's financial
leverage, which S&P views as high (estimated debt to EBITDA of
about 4.7x at year-end 2009, adjusting debt for factoring, swap
liability, operating leases, and the pension deficit).  In
addition, the company's limited operating track record as a merged
entity (it results from the December 2008 merger of Groupe
Smithfield and Campofrio Alimentacion S.A.) creates uncertainty,
in S&P's opinion, with regard to CFG's future performance in the
mature and highly competitive European meat processing industry.
CFG's key business risks stem, in S&P's view, from its constrained
pricing power given the highly concentrated retail distribution
channel in Western Europe, while the company's cost base is
dominated by historically volatile agricultural commodities.  S&P
believes that CFG's revenue base is likely to grow only
incrementally, because its product base offers limited
opportunities to tap some of the faster growing product lines,
such as health and wellness-related food.

The corporate credit rating is supported by CFG's large-scale
operations and its portfolio of strong local brands, which enable
it to defend its market share.  Unlike its main shareholder,
Smithfield Foods Inc. (B-/Negative/--), CFG is not vertically
integrated since it is not engaged in farming, although it owns a
slaughterhouse to mitigate some of its exposure to meat vendors.
On the financial side, credit quality benefits from CFG's ability
to generate positive free cash flow of about EUR25 million
annually from operations.

"We believe that CFG will continue to perform resiliently,
resulting in continuing positive free cash flow generation (except
in 2009, due to extraordinary cash movements linked to the
transaction)," said Ms. Devevey.  "We also believe that the
company is likely to use this free cash flow to reduce financial
leverage gradually over the next two years toward 4.0x on a
Standard & Poor's-adjusted basis."

S&P could lower the rating if CFG's operating performance and free
cash flow generation were insufficient to enable it to reduce
financial leverage as outlined above, or if covenant headroom
declined to a level below 15%.  A downgrade would also be possible
if CFG failed to maintain what S&P considers to be "adequate"
liquidity at all times.

In S&P's opinion, CFG's high leverage currently makes an upgrade
unlikely in the near term.


SOS CORPORACION: Four Executives Quit Amid Debt Negotiations
------------------------------------------------------------
Gianluca Baratti at Bloomberg News, citing El Economista, reports
that four senior executives, including a former chief executive
officer, have stepped down from SOS Corporacion Alimentaria SA as
the food company renegotiates debt.

According to Bloomberg, Endika Sanchez, Antonio Murillo, Javier
Moreno and Jose Luis Ramirez have all left the company in the last
few days.

SOS Corporacion Alimentaria SA -- http://www.gruposos.com/-- is
one of the largest Spanish food groups with a portfolio of brands
including Bertolli and Carbonell olive oil, Koipe oils and olives
and SOS rice.  The company also has an extensive international
presence with recognized brands including Abu Bint, Lassie,
Saludaes, Adolphus, Comet and Blue Ribbon.


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


FORD MOTOR: Geely Has Turnaround Plan for Volvo Unit
----------------------------------------------------
The Wall Street Journal's Norihiko Shirouzu reports that China's
Zhejiang Geely Holding Group Co., has developed a turnaround plan
in which Ford Motor Co.'s money-losing Volvo unit would sell
nearly one million vehicles a year.

The plan centers on China but also sets ambitious goals for
Volvo's traditional markets of Europe and North America, the
report says.  Geely believes Volvo could sell two-thirds of the
cars from its planned new China plant domestically and would seek
to export the rest to other Asia-Pacific countries, the report
continues.

Geely was chosen last month as lead bidder for Volvo.  According
to the report, a person close to Geely confirmed that Geely, one
of China's biggest privately owned auto makers, is financing a
roughly US$2 billon bid for Volvo with a combination of cash, bank
loans and funds from a small number of investors.  The person said
those investors include a government-owned fund based in Tianjin,
China, and a relatively well-known foreign investor.  The person
didn't give details.

The Journal says Geely, under its plans for Volvo, would build a
new Volvo plant in China capable of producing 300,000 vehicles a
year as it looks to draw on China's market potential and
inexpensive labor to raise sales and cut costs.  But for now it is
ceding more sophisticated engineering to Volvo's Swedish
operations, an aspect of the plan that could help allay fears of
lost jobs in Sweden.

Geely believes Volvo has the potential to sell 200,000 cars a year
in China, up from 12,600 vehicles last year, according to the
Journal.  It forecasts selling nearly one million cars a year
globally within four or five years, compared with recent annual
sales of around 400,000 vehicles.  Geely wants to use Volvo's
manufacturing capacity fully in Europe to sell 600,000 vehicles in
Europe and North America, the report says.

                         About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents.  With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo.  The company provides financial
services through Ford Motor Credit Company.

                           *     *     *

As reported by the Troubled Company Reporter on November 4, 2009,
Moody's Investors Service upgraded the senior unsecured rating of
Ford Motor Credit Company LLC to B3 from Caa1.  This follows
Moody's upgrade of Ford Motor Company's corporate family rating to
B3 from Caa1, with a stable outlook.  Ford Credit's long-term
ratings remain on review for further possible upgrade.

As reported by the TCR on April 15, 2009, Standard & Poor's
Ratings Services said it raised its ratings on Ford Motor Co. and
related entities, including the corporate credit rating, to 'CCC+'
from 'SD-'.  The ratings on Ford Motor Credit Co. are unchanged,
at 'CCC+', and the ratings on FCE Bank PLC, Ford Credit's European
bank, are also unchanged, at 'B-', maintaining the one-notch
rating differential between FCE and its parent Ford Credit.  S&P
said that the outlook on all entities is negative.


SAS AB: S&P Downgrades Long-Term Corporate Credit Rating to 'B-'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Scandinavian airline group SAS AB
to 'B-' from 'B'.  The outlook is negative.

"The downgrade primarily reflects a deterioration of about 20% in
SAS's liquidity buffer over the past quarter," said Standard &
Poor's credit analyst Leigh Bailey.  "It also reflects the group's
stretched financial profile and the adverse effect of recessionary
business conditions in many of its markets."

The third-quarter deterioration in liquidity was driven by heavy
cash outflows attributable to weaker earnings and an increase in
working capital.  (S&P considers available liquidity of
SEK8.3 billion to include cash, cash equivalents, and unused
credit facilities that can be used for any purpose.) S&P believes
that trading prospects will remain difficult, and therefore that
liquidity could come under further pressure over the winter
months.

In S&P's view, SAS's liquidity, which has declined appreciably in
recent quarters, could come under further pressure in the near
term from slowing passenger traffic growth, lower rates of
business travel, and a weakening yield trend as fare competition
intensifies.

The rating could come under further pressure if SAS were unable to
satisfactorily adapt its cost base to offset weakening revenues,
and/or achieve a sustained level of cash outflows.  In particular,
the rating could come under pressure if the group's cash, unused
loan commitments, or credit metrics were to weaken further from
current levels.


SKANDINAVISKA ENSKILDA: S&P Corrects Ratings on Two Notes
---------------------------------------------------------
Standard & Poor's Ratings Services said that due to a data entry
error, two debt ratings were incorrectly assigned to two perpetual
subordinated notes issued by Skandinaviska Enskilda
Banken AB:

  -- JPY10 billion 4.4% perpetual subordinated instruments (ISIN
     XS0058537373) were incorrectly assigned a rating as senior
     unsecured notes when in fact the notes are perpetual
     subordinated.  As a consequence, the debt rating on the notes
     should be 'BB+' and not 'A'.

  -- US$2 million perpetual subordinated floating rate instruments
     (ISIN XS0119875168) were incorrectly assigned a rating as
     dated subordinated notes when in fact the notes are perpetual
     subordinated.  As a consequence, the debt rating on the notes
     should be 'BB+' and not 'BBB+'.

The ratings have now been corrected.

                          Ratings List

                 Skandinaviska Enskilda Banken AB

    JPY10 bil. 4.4% perpetual subordinated nts               BB+
    US$2 mil. perpetual subordinated floating rate nts       BB+


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


AZEDA AG: Claims Filing Deadline is November 13
-----------------------------------------------
Creditors of Azeda AG are requested to file their proofs of claim
by November 13, 2009, to:

         Alexandre Zurmuehle
         7492 Alvaneu
         Switzerland

The company is currently undergoing liquidation in Alvaneu.  The
decision about liquidation was accepted at an extraordinary
general meeting held on September 16, 2009.


D. RUF VELOS-MOTOS: Claims Filing Deadline is November 13
---------------------------------------------------------
Creditors of D. Ruf Velos-Motos GmbH are requested to file their
proofs of claim by November 13, 2009, to:

         Daniel Ruf, liquidator
         Rosengasse 14
         5013 Niedergoesgen
         Switzerland

The company is currently undergoing liquidation in Niedergoesgen.
The decision about liquidation was accepted at a shareholders'
meeting held on September 17, 2009.


GUIDION SUISSE: Claims Filing Deadline is November 13
-----------------------------------------------------
Creditors of Guidion Suisse GmbH are requested to file their
proofs of claim by November 13, 2009, to:

         Jost Windlin
         Liquidator
         Gartenstrasse 4
         6304 Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at a shareholders' meeting
held on September 24, 2009.


INNUENDO AG: Claims Filing Deadline is November 13
--------------------------------------------------
Creditors of Innuendo AG are requested to file their proofs of
claim by November 13, 2009, to:

         Virtue Trustees (Switzerland) AG
         Liquidator
         Wengistrasse 1
         8004 Zurich
         Switzerland

The company is currently undergoing liquidation in Chur.  The
decision about liquidation was accepted at a general meeting held
on May 13, 2009.


ISG INSTALLATIONS: Claims Filing Deadline is November 13
--------------------------------------------------------
Creditors of ISG Installations und Service GmbH are requested to
file their proofs of claim by November 13, 2009, to:

         H. Berner Anlageberatung AG
         Konizstrasse 194
         3097 Liebefeld
         Switzerland

The company is currently undergoing liquidation in Biberist.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on September 15, 2009.


KC VENTURECOM: Claims Filing Deadline is November 16
----------------------------------------------------
Creditors of KC Venturecom AG are requested to file their proofs
of claim by November 16, 2009, to:

         Ruepp & Partner AG
         Birkenstr. 47
         6343 Rotkreuz
         Switzerland

The company is currently undergoing liquidation in Lenzburg.  The
decision about liquidation was accepted at a general meeting held
on September 18, 2009.


LEDERWOL AG: Claims Filing Deadline is November 16
--------------------------------------------------
Creditors of Lederwol AG are requested to file their proofs of
claim by November 16, 2009, to:

         Locher & Partner Treuhand AG
         Spielhof 9
         6317 Oberwil bei Zug
         Switzerland

The company is currently undergoing liquidation in Zug.  The
decision about liquidation was accepted at an extraordinary
general meeting held on September 1, 2009.


PETROPLUS HOLDING: S&P Downgrades Corporate Credit Rating to 'BB-'
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Switzerland-based refiner
Petroplus Holding AG to 'BB-' from 'BB'.  The outlook is negative.

At the same time S&P lowered its senior unsecured debt rating on
US$1.6 billion in note issues and a US$150 million convertible
bond issue by Petroplus Finance Ltd. (Bermuda) to 'B+' from 'BB-'.

"The rating action reflects Petroplus' very weak operating
performance in the year to date and a downward revision in S&P's
expected credit metrics as a result of difficult conditions for
European refiners," said Standard & Poor's credit analyst Per
Karlsson.

S&P now expect Petroplus' 2009 EBITDA to be well below S&P's
previous expectations for the rating based on the company's
adjusted EBITDA of US$280 million for the first nine months of the
year and what S&P expects to be a weak fourth quarter due to the
turnaround of the company's large Coryton refinery.

Petroplus' performance and utilization rates were extremely weak
in the third quarter of 2009, as northwest European refining
margins fell to their lowest levels in a decade and also due to
incidents or accidents.  The company reported negative EBITDA in
the quarter.  However, even after adjusting this upward for
extraordinary inventory costs of US$80 million in connection with
a pipeline accident, EBITDA would have been only US$18 million.

For 2009, S&P estimates Petroplus' ratio of funds from operations
(FFO) to debt based on annualized nine-month figures at around a
low 10% (even when adjusted for extraordinary items).  This is
well below the 20%-25% range that S&P viewed to be consistent with
the previous rating.  Adjusted debt to EBITDA for the first nine
months of 2009 stood at above 5x.

At the end of the third quarter, adjusted debt stood at US$1.9
billion (after S&P's adjustments for operating leases, pension
obligations, and trade receivables sold); this figure is net of
US$200 million of cash.  The company reported proforma cash and
bank balances of US$408 million at end-September 2009 but S&P
regards US$200 million of this cash as tied to operations,
including a cushion to fund potential near-term working capital
swings.

The ratings continue to reflect Petroplus' exposure to the highly
competitive northwest European refining environment, the current
prolonged cyclical downturn, the below-average cost structure and
profitability of the company's refining assets and currently very
weak credit metrics.  These weaknesses are partly offset by
adequate asset diversity through seven refineries in the U.K.,
Germany, Belgium, France, and Switzerland.  Other factors
supporting the ratings are the group's experienced management team
and favorable debt maturity profile.  The first major debt
maturities are not until 2014, thanks to debt refinancing in
September/October 2009 and recent credit enhancing actions,
notably a US$250 million equity increase.

The negative outlook reflects S&P's assessment that Petroplus'
profits and free cash flow will likely remain under pressure as a
result of the currently difficult industry environment.


RESTAURANT ALPENCLUB: Claims Filing Deadline is November 16
-----------------------------------------------------------
Creditors of Restaurant Alpenclub AG are requested to file their
proofs of claim by November 16, 2009, to:

         Restaurant Alpenclub Betriebs AG
         6390 Engelberg
         Switzerland

The company is currently undergoing liquidation in Engelberg.  The
decision about liquidation was accepted at an extraordinary
general meeting held on August 14, 2009.


S'BERGLI GMBH: Claims Filing Deadline is November 18
----------------------------------------------------
Creditors of s'Bergli GmbH are requested to file their proofs of
claim by November 18, 2009, to:

         Jules Zuber, liquidator
         Einsiedlerstrasse 176
         8810 Horgen
         Switzerland

The company is currently undergoing liquidation in Horgen.  The
decision about liquidation was accepted at a shareholders' meeting
held on April 6, 2009.


UNIIVEST HOLDING: Unilens Vision Has Deal to Buy 48% of Shares
--------------------------------------------------------------
Unilens Vision Inc. entered into a Stock Purchase Agreement in
which it agreed to repurchase 2,188,861 shares of its common
stock, representing approximately 48% of it's outstanding shares,
from its largest shareholder, Uniinvest Holding AG in Liquidation
for an aggregate purchase price of $6,894,912 or $3.15 per share.
The repurchased shares will be returned to the Company's treasury.

The Sale is expected to close in the first quarter of calendar
year 2010.  It is subject to the Company receiving minority
shareholder approval in accordance with TSX Venture Exchange
policy as well as Uniinvest satisfying certain requirements
applicable to it due to its pending bankruptcy proceedings.

The Company will fund the transaction primarily through a
$6.9 million 5-year term loan facility provided to the Company's
wholly owned subsidiary Unilens Corp., USA, by Regions Bank,
facilitated by the Company's Investment Bankers, Hyde Park Capital
Partners, LLC.  Unilens Corp., USA also obtained a $1.5 million
line of credit from Regions Bank for working capital purposes.
The loan facility and line of credit bear a floating interest rate
at a premium over LIBOR and is secured by certain assets of the
Company.

"We believe that the stock repurchase represents a very attractive
use of our capital and reflects our commitment to building long-
term shareholder value," stated Michael Pecora, Chief Executive
Officer of Unilens Vision Inc.  "The transaction is highly
accretive to earnings per share and eliminates any possible
negative impact on our share value associated with the 48% stock
overhang," concluded Mr. Pecora.

Established in 1989, Unilens Vision Inc. -- http://www.unilens.com
-- through its wholly owned subsidiary Unilens Corp., USA, located
in Largo, Florida, develops, licenses, manufactures, distributes
and markets contact lenses primarily under the C-Vue brand
directly to Independent Eye Care Professionals.


WOHNBAU AG: Claims Filing Deadline is November 16
-------------------------------------------------
Creditors of Wohnbau AG are requested to file their proofs of
claim by November 16, 2009, to:

         zoller & partner AG
         Toggenburgerstrasse 139
         9500 Wil SG
         Switzerland

The company is currently undergoing liquidation in Wattwil.  The
decision about liquidation was accepted at a general meeting held
on June 8, 2009.


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


ALBARAKA TURK: Fitch Affirms Individual Rating at 'D'
-----------------------------------------------------
Fitch Ratings has affirmed Turkey-based Albaraka Turk Katilim
Bankasi A.S.'s ratings at Long-term foreign and local currency
Issuer Default 'BB-', Short-term foreign and local currency IDR
'B', Individual 'D', Support '3' and National Long-term 'A+(tur)'.
The Outlooks for the Long-term ratings are Stable.

The IDRs and Support and National ratings reflect Fitch's view of
a moderate probability of support from Albaraka Turk's majority
shareholder, Bahrain-based Albaraka Banking Group, in case of
need.  Fitch believes ABG has a high propensity to support,
although its ability to do so is limited given its unique
structure as a union of diversified subsidiaries across different
sub-investment countries and Albaraka Turk's relatively large size
within the group.

The Individual rating reflects Albaraka Turk's small size in the
Turkish financial system, limited diversification of funding and
Fitch's concerns over asset quality.  These factors are offset by
the bank's good profitability and minimal market risk.

The bank maintained sound operating profitability in H109, despite
the difficult operating environment.  The contribution of fees and
commissions to operating revenue continued to improve, but
remained lower than peers.  Despite its small size and recent
franchise expansion, Albaraka Turk's cost structure and efficiency
measures compare well with the sector.  However, Fitch expects
costs to rise due to the construction of new headquarters in
Istanbul.  The economic downturn caused non-performing loans to
rise to 4.1% of total loans in H109 from 2.9% in 2008.  Although
asset quality has worsened at Albaraka Turk, it is still better
than at its peers; however, the pace of deterioration is faster
than at its competitors and Fitch considers that upside risks to
NPL's might be higher.  These negative factors are, however,
partly explained by the unique features of participation banking,
as asset quality problems can be identified earlier than at
commercial banks due to regular payment schedules.

Albaraka Turk is the smallest participation bank (financial
institution providing interest-free banking services) in Turkey,
with a market share of 0.7% in the banking system.  The bank is a
member of the Bahrain-registered ABG, a leading Islamic banking
group.  It offers corporate and retail finance, leasing and
international banking.

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.


ANADOLUBANK: Moody's Lifts Bank Financial Strength Rating to 'D+'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the long-term local
currency debt and deposit ratings of 10 Turkish banks, while
upgrading the stand-alone ratings of four institutions.  The
changes to the stand-alone ratings reflect the fact that Turkey's
banks have proved relatively resilient thus far to the strains of
the global recession and the resultant national economic downturn.
The changes to the long-term debt and deposit ratings reflect the
role of systemic support in these ratings.

The rating agency continues to believe that the Turkish government
has a strong willingness and ability to support its banks, if
needed.  However, the changes are part of Moody's global
reassessment of systemic support, which brings the measure of such
support closer in line with Turkey's own debt rating of Ba3.

As part of the rating actions, Moody's also downgraded the short-
term local currency deposit ratings of two banks, and confirmed
the short-term local currency deposit ratings of two others.  Also
confirmed is the long-term local currency rating of the one
remaining bank that constituted the 11 originally placed under
review by Moody's on August 3, 2009.

Moody's also downgraded the national scale long-term ratings of
three banks and confirmed the national scale short-term rating of
one bank.

A detailed list of ratings affected, as well as brief discussions
of the actions on the individual banks, follows below.

                  Upgrade of Stand-Alone Ratings
               Reflects Resilience During Downturn

The upgrades of four of the Turkish banks' stand-alone ratings
reflect the entities' strengthening financial fundamentals and
earnings resilience in the midst of the global recession, which
has plunged the local economy into a steep downturn over the past
year.

Moody's has upgraded the bank financial strength ratings of
Turkiye Is Bankasi to C- from D+ and of Anadolubank to D+ from D.
BFSRs measure a bank's intrinsic financial strength, without
benefit given for the potential of outside support.  They are
expressed on a scale from A to E.

The rating agency also raised the Baseline Credit Assessments of
two other banks, T.C. Ziraat Bankasi (to Baa3 from Ba1) and
Turkiye Vakiflar Bankasi (to Baa3 from Ba1).  BCAs are derived
from BFSRs, but are converted to Moody's traditional Aaa to C
rating scale, which is more detailed.  As such, a BFSR may be
equivalent to more than one BCA.  In these two cases, the gradual
strengthening in the intrinsic financial strength of the two
institutions did not warrant an upgrade in the BFSR, but did allow
a conversion to a higher BCA.

Downgrades of Local Currency Ratings Driven By Revised Systemic
                       Support Assessment

The downgrades of the local currency debt and deposit ratings are
driven by Moody's revision of its approach to systemic support.
They do not reflect any deterioration in the intrinsic strength or
operating performance of the affected entities.  The changes
implied by the revisions are being implemented globally, affecting
50 banking systems, including Turkey.

Moody's explains this new assessment of systemic support in detail
in the Special Comments "Financial Crisis More Closely Aligns Bank
Credit Risk and Government Ratings in Non-Aaa Countries",
published in May 2009, and "Turkish Bank Rating Actions Driven by
Global Review of Systemic Support", published in August 2009.

Moody's continues to believe that most governments are likely to
support their nations' banks to avoid a crisis in the local
payments system.  The probability of such support is an important
part of Moody's credit analysis and it provides an uplift to the
debt and deposit ratings from a bank's standalone level of
strength.  However, the rating agency also believes that the
capacity of a country and its central bank to support its
financial sector during a prolonged systemic crisis is now more
closely aligned with the government's own creditworthiness.

Moody's new systemic support indicator for Turkey is at Ba1, which
is two notches above the government's Ba3 local currency bond
rating.  The two-notch difference between the systemic support
indicator and the government's rating reflects Moody's assessment
of the Turkish government's strong ability and willingness to
support the banking system, its broad array of financial and non-
financial tools and the system's intrinsic strength, demonstrated
during the ongoing crisis and past global downturns.

This view is underpinned by these:

     (i) There is strong political and historical evidence in
         favour of characterizing Turkey as a "highly supportive"
         banking system.  The Turkish government has a track
         record of bailing out depositors and other creditors
         during the 2000-01 banking crisis and the system benefits
         from a high deposit insurance scheme, of up to YTL50,000
         (US$38,700) per account;

    (ii) Swift actions during the recent global crisis have been
         indicative of the continued high priority the government
         places on the health and stability of the financial
         system.  The authorities aggressively cut policy interest
         rates in line with inflation expectations, while
         providing liquidity support to meet the needs of all
         financial institutions;

   (iii) Banking institutions are primarily core-funded in local
         currency, a profile that has helped the system to manage
         the ongoing global financial crisis, despite the riskier
         global environment and some pressure on credit
         fundamentals as a result of the contraction in growth.
         Notwithstanding the marked slowdown in loan origination
         and transaction volumes, the system has been supported by
         low interest rates, high capital levels (18% average
         system BIS ratio in 2008), profitability and strong loan
         loss reserves; and

    (iv) The relatively modest size of the Turkish banking system,
         with an assets-to-GDP ratio of 77% and a loans-to-GDP
         ratio of 39% at the end of 2008, suggests that the risk
         of the crystallization of banking losses on the
         government's balance sheet is only moderate.

Moody's also expects only modest loan growth in Turkey.
Similarly, Moody's anticipates only a moderate deterioration in
banks' asset quality, because of the relatively low level of
indebtedness of Turkish households and corporations.  This should
be well within the banks provisioning ability.  Moreover, the
Turkish banking system is well capitalized, with relatively low
loan-to-deposit and leverage ratios, as well as a small total
foreign exchange-denominated loan book.  The system's short-term
financing requirements are also fairly limited at present.

                     List of Rating Actions

These rating actions were taken:

     (i) Akbank TAS's long-term local currency deposit rating was
         downgraded to Baa1, with a stable outlook, from A3,
         within the context of Moody's global review of the
         systemic support available to banks in non-Aaa systems.
         Its other ratings were unaffected.

Moody's assesses the probability of systemic support as very high,
but this does not result in any rating uplift for the local
currency deposit rating from the Baa1 BCA

     (ii) Anadolubank AS's BFSR was upgraded to D+ from D, which
         maps to a Ba1 BCA.  The bank's Ba1 long-term local
         currency deposit rating was confirmed.  The ratings carry
         a stable outlook.  Its other ratings were unaffected.

The upgrade of the bank's BFSR to D+ is driven by the bank's
satisfactory overall financial fundamentals, underscored by its
good earning power, adequate liquidity profile, good asset quality
and efficiency ratios, as well as its relatively limited exposure,
both on- and off-balance sheet, to its controlling shareholder and
related companies.  It also incorporates Anadolubank's comfortable
equity capital after the capital injection by its owners, against
the sizeable risks and occasional volatility inherent in the
market.  The bank's asset quality remains one of the best in the
system and it has performed well during the ongoing economic
contraction.  The bank's strong capitalization provides adequate
loss absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.

Moody's assesses the probability of systemic support as moderate,
but this does not result in any rating uplift for the local
currency deposit rating from the Ba1 BCA.

   (iii) Asya Katilim Bankasi AS's long-term local currency
         deposit rating was downgraded to Ba2 with a stable
         outlook from Ba1.  The national scale rating was
         downgraded to A3.tr from A1.tr and the short-term rating
         confirmed at TR-1.  The rating actions were taken within
         the context of Moody's global review of the systemic
         support available to banks in non-Aaa systems.  Its other
         ratings were unaffected.

Moody's assess the probability of systemic support as moderate,
which does not result in any uplift for the local currency deposit
rating from the Ba2 BCA.

    (iv) Denizbank AS's long-term local currency deposit rating
         was downgraded to Baa2 with a stable outlook from Baa1,
         within the context of Moody's global review of the
         systemic support available to banks in non-Aaa systems.
         Its other ratings were unaffected.

Moody's assesses the probability of systemic support as moderate
and the probability of support from the parent group Dexia (Dexia
Credit Local, D+/Ba1/A1 negative outlook) as high.  However, this
support assessment does not result in an uplift for the local
currency deposit rating from the Baa2 BCA.

     (v) T.C. Ziraat Bankasi's local currency deposit ratings were
         downgraded to Baa3/Prime-3 with a stable outlook from
         Baa1/Prime-2, within the context of Moody's global review
         of the systemic support available to banks in non-Aaa
         systems.  Its other ratings were unaffected.  Meanwhile,
         its BCA was raised to Baa3 with a stable outlook from
         Ba1.

Ziraat's BCA was raised to Baa3 to reflect the bank's ample
capital and the good earnings that provide an adequate loss
absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.  Furthermore, the bank's asset
quality position continues to be one of the best in the system.
The likely increase in provisioning requirements as its asset
quality deteriorates is well within its provisioning capacity.

According to Moody's, these metrics, together with the bank's
comfortable funding franchise (it possesses the largest retail
deposit base in the country with an 18% market share), continuing
modernization and improvements in its internal process and risk
management practices position it higher up within the D+ BFSR
category, thus mapping to a Baa3 BCA.

The probability of systemic support is assessed as extremely high
however the new systemic support does not result in any additional
rating uplift in the local currency deposit rating from the bank's
Baa3 Baseline Credit Assessment.

    (vi) Turk Ekonomi Bankasi AS's long-term local currency
         deposit rating was downgraded to Baa2 with a stable
         outlook from Baa1, within the context of Moody's global
         review of the systemic support available to banks in non-
         Aaa systems.  Its other ratings were unaffected.

Moody's assesses the probability of support from BNP Paribas
(B/Aa1/on review for downgrade), which is one of the bank's
controlling shareholders, as high, resulting in a one-notch uplift
for the local currency deposit rating from the bank's Baa3 BCA.
Moody's also assesses the probability of systemic support from the
local authorities as high, but this does not result in any
additional rating uplift beyond that provided by the foreign
parent.

   (vii) Turkiye Garanti Bankasi AS's long-term local currency
         deposit rating was downgraded to Baa1 with a stable
         outlook from A3 and its long-term national scale rating
         was downgraded to Aa1.tr from Aaa.tr, within the context
         of Moody's global review of the systemic support
         available to banks in non-Aaa systems.  Its other ratings
         were unaffected.

Moody's assesses the probability of systemic support as very high
and the probability of support from GE Capital Corporation (a
20.85% shareholder in the bank and in joint control with the Dogus
group, which owns 30.52%) as low.  The support assessment does not
result in the local currency deposit ratings receiving any uplift
from the bank's Baa1 BCA.

  (viii) Turkiye Is Bankasi AS's BFSR was upgraded to C- from D+
         (resulting in the BCA being raised to Baa2 from Baa3).
         The bank's long-term local currency deposit rating was
         downgraded to Baa2 with a stable outlook from A3, within
         the context of Moody's global review of the systemic
         support available to banks in non-Aaa systems.  Its
         Prime-2 short-term local currency deposit rating was
         confirmed and its other ratings were unaffected.

    (ix) Turkiye Sinai Kalkinma Bankasi AS's long-term local
         currency deposit rating was downgraded to Baa2 with a
         stable outlook from Baa1, within the context of Moody's
         global review of the systemic support available to banks
         in non-Aaa systems.  Its Prime-2 short-term local
         currency deposit rating was confirmed and its other
         ratings were unaffected.

Moody's assesses the probabilities of systemic and major
shareholder support (from Turkiye Is Bankasi) for Turkiye Sinai
Kalkinma Bankasi as very high, resulting in a one-notch rating
uplift for the long-term local currency deposit rating from the
bank's Baa3 BCA.  According to Moody's Joint Default Analysis, the
probability of systemic support for banks with a controlling
shareholder in the same country is incorporated into the rating
through the parent's local currency deposit rating, which in this
case is Turkiye Is Bankasi's newly upgraded Baa2 local currency
deposit rating.

     (x) Turkiye Vakiflar Bankasi AS's local currency deposit
         ratings were downgraded to Baa3/Prime-3 with a stable
         outlook from Baa1/Prime-2, within the context of Moody's
         global review of the systemic support available to banks
         in non-Aaa systems.  Its other ratings were unaffected.
         Meanwhile, its BCA was raised to Baa3 from Ba1 within the
         D+ BFSR category.

Vakifbank's BCA was raised to Baa3 to reflect the resilience of
its earnings and capital base to the severe economic downturn in
Turkey.  The bank has generated good earnings throughout 2009,
which more than cover its increasing provisioning requirements as
its asset quality deteriorates.  Taken together with the bank's
ample capital, its strong earnings provide it with adequate loss
absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.

Vakifbank's NPL ratio is higher than the banking system's average
level mainly because approximately 1.9% of legacy NPLs on its
balance sheet have not been written off.  The bank reported 5.47%
NPLs at the end of H1 2009, up from 4.57% reported at the end of
2008, versus the sector averages of 4.85% and 3.64% respectively.
As shown by the narrowing gap between Vakifbank's and the sector's
NPLs, the rate of deterioration of the bank's asset quality is
lower than that of the sector.

Furthermore, the bank has a strong franchise with extensive
nationwide reach and a strong presence in key growth segments.  It
has maintained its market share in line with the growth of the
Turkish banking system in recent years, showing the strength of
its franchise and business model.  The strong presence of the bank
in the salary accounts market should continue to support the
performance of the loan portfolio during the projected slow
economic recovery in Turkey.

Moody's assesses the probability of systemic support for Vakifbank
as very high however this does not result in any uplift for the
local currency deposit rating from the bank's Baa3 BCA.

    (xi) Yapi Kredi Bankasi AS's long-term local currency deposit
         rating was downgraded to Baa1 with a stable outlook from
         A3, and its long-term national scale rating was
         downgraded to Aa2.tr from Aaa.tr, within the context of
         Moody's global review of the systemic support available
         to banks in non-Aaa systems.  Its other ratings were
         unaffected.

YKB's Baa1 long-term local currency deposit rating receives a two-
notch uplift from its Baa3 BCA, based on a very high probability
of support from one of its controlling shareholders, UniCredito
Italiano SpA (rated C/A3/Aa3 stable outlook).  Moody's also
assesses the probability of systemic support from the local
authorities as very high, but this does not result in any
additional rating uplift beyond that provided by the foreign
parent.

                     Previous Rating Actions

The last rating action on Akbank TAS was on September 24, 2009,
when the outlook on its B1 long-term foreign currency deposit
rating was changed to positive from stable.

The last rating action on Anadolubank AS was on September 24,
2009, when the outlook on its B1 long-term foreign currency
deposit rating was changed to positive from stable.

The last rating action on Asya Katilim Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Denizbank AS was on September 24, 2009,
when the outlook on its B1 long-term foreign currency deposit
rating was changed to positive from stable.

The last rating action on T.C. Ziraat Bankasi was on September 24,
2009, when the outlook on its B1 long-term foreign currency
deposit rating was changed to positive from stable.

The last rating action on Turk Ekonomi Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Garanti Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Is Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Sinai Kalkinma Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Vakiflar Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Yapi ve Kredi Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

T.C Ziraat Bankasi, and Turkiye Vakiflar Bankasi AS are
headquartered in Ankara, Turkey.  All the other banks are
headquartered in Istanbul, Turkey.

Akbank TAS had total assets of TRY92.7 billion (US$61.0 billion)
under IFRS at the end of December 2008.

Anadolubank AS had total assets of TRY3.8 billion (US$2.5 billion)
under IFRS at the end of December 2008.

Asya Katilim Bankasi AS had total assets of TRY8.1 billion
(US$5.3 billion) under IFRS at the end of December 2008.

Denizbank AS had total assets of TRY24.2 billion (US$15.9 billion)
under BRSA at the end of December 2008.

T.C. Ziraat Bankasi had total assets of TRY104.4 billion
(US$77.6 billion) under BRSA at the end of December 2008.

Turk Ekonomi Bankasi AS had total assets of TRY17.0 billion
(US$11.2 billion) under IFRS at the end of December 2008.

Turkiye Garanti Bankasi AS had total assets of TRY98.2 billion
(US$69.7 billion) under IFRS at the end of December 2008.

Turkiye Is Bankasi AS had total assets of TRY97.5 billion
(US$63.4 billion) under IFRS at the end of December 2008.

Turkiye Sinai Kalkinma Bankasi AS had total assets of
TRY6.3 billion (US$4.2 billion) under IFRS at the end of December
2008.

Turkiye Vakiflar Bankasi AS had total assets of TRY54.6 billion
(US$35.9 billion) under BRSA at the end of December 2008.

Yapi ve Kredi Bankasi AS had total assets of TRY69.9 billion
(US$46.0 billion) under IFRS at the end of December 2008.


ASYA KATILIM: Fitch Affirms Individual Rating at 'D'
----------------------------------------------------
Fitch Ratings has affirmed Turkey-based Asya Katilim Bankasi
A.S.'s ratings at Long-term foreign and local currency Issuer
Default 'B', National Long-term 'BBB+(tur)' and Short-term foreign
and local currency IDR 'B', Individual 'D' , Support '5' and
Support Rating Floor 'No Floor'.  The Outlooks for the Long-term
IDRs and National Long-term rating are Stable.

The ratings reflect the bank's recent rapid loan growth and
concentrations in the loan portfolio which may lead to additional
asset quality problems in a difficult operating environment.
These are balanced by the bank's expanding franchise, the
improving diversification of its product offering and its good
profitability.

Bank Asya's profitability is mainly supported by strong loan
yields, despite ongoing expenses related to the expansion of the
branch network and growing credit impairment charges.  Its loan
portfolio is dominated by short-term commercial loans.  The non-
performing loan ratio deteriorated to 6.5% at end-H109 from 5.9%
at end-2008 and 5.0% at end-2007, mainly reflecting a contracting
economy.  NPLs remained comfortably covered by reserves.  Well-
diversified customer deposits are the main source of funding.  The
loans/deposits ratio is improving, reaching 100% at end-H109
(2008: 114%), as some borrowing facilities matured and were
replaced by growing retail deposits.  The total capital ratio
reached 13.69% at end-H109, entirely made up of tier 1.  In
Fitch's opinion, higher capitalization would provide a larger
buffer against potential asset quality risks.

Bank Asya was incorporated in 1996 as a financial institution
providing interest-free banking services.  The bank carried out an
IPO in 2006; 48.4% of the shares were publicly traded as of end-
H109.  Apart from these, Bank Asya has 246 shareholders from
various industries holding a combined 51.6% stake.  Bank Asya is
the 14th-largest out of total 49 banks operating in Turkey with a
1.3% share in total assets.  At end-H109, Bank Asya was the
largest bank offering interest-free banking services, locally
known as 'participation banks', of the four in Turkey.  Bank Asya
provides banking services through its 149 branches, in corporate,
commercial, SME and retail banking, with a focus on international
trade finance.

According to Fitch's rating definitions, the Individual Rating
reflects the standalone strength of a bank while the Support
Rating reflects the probability of support from a major
shareholder and/or the government.


KUVEYT TURK: Fitch Affirms Individual Rating at 'D'
---------------------------------------------------
Fitch Ratings has placed Turkey-based Kuveyt Turk Katilim Bankasi
A.S.'s Long-term foreign currency Issuer Default Rating of 'BB' on
Rating Watch Positive.  This follows similar action taken on the
Republic of Turkey's foreign currency IDR.

At the same time the agency affirmed Kuveyt Turk's other ratings
at Long-term local currency IDR 'BBB-', Short-term foreign
currency IDR 'B', Short-term local currency IDR 'F3', Individual
'D', Support '3' and National Long-term 'AAA(tur)'.  The Outlooks
on Long-term local currency IDR and National rating are Stable.

The IDRs, National Long-term and Support ratings of Kuveyt Turk
reflect Fitch's view of the probability of support from its 62%
owner Kuwait Finance House ('A+'/Stable, 'C/D'/Rating Watch
Negative /'F1').  However, this support is constrained by Turkey's
Country Ceiling, 'BB', currently on RWP.  Kuveyt Turk'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 Kuveyt Turk would also be upgraded.  The Long-term
local currency IDR of Kuveyt Turk, currently two notches above the
Turkish sovereign's Long-term local currency IDR, is not
constrained.  An upgrade of this rating will depend on an
improvement of KFH's Individual rating.

The Individual rating reflects Kuveyt Turk's exposure to growing
credit risks and relatively limited -albeit improving - franchise.
These are offset by, good profitability, adequate capitalization
and a diversified and thus far, stable retail deposit base.  The
weakening credit environment and concentration levels in loan
portfolio led to asset quality deterioration over the 12 months to
end-H109 while reserve coverage of impaired loans remains weak.
Capitalization has been supported by two capital injections since
2007 and increased retained earnings, which helped maintain the
tier 1 and total capital adequacy ratios at reasonable levels of
around 15%.

Kuveyt Turk was incorporated in 1989.  The remaining 38% shares
are held by Kuwaiti and Turkish public entities.  The bank engages
in interest-free banking, primarily involving corporate and
commercial lending while also targeting retail customers.  At end-
2008 Kuveyt Turk ranked third of Turkey's four participation banks
in terms of funds collected, with a 22% market share.

According to Fitch's rating definitions, the Individual Rating
reflects the standalone strength of a bank while the Support
Rating reflects the probability of support from a major
shareholder and/or the government.


ANADOLUBANK: Moody's Lifts Bank Financial Strength Rating to 'D+'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the long-term local
currency debt and deposit ratings of 10 Turkish banks, while
upgrading the stand-alone ratings of four institutions.  The
changes to the stand-alone ratings reflect the fact that Turkey's
banks have proved relatively resilient thus far to the strains of
the global recession and the resultant national economic downturn.
The changes to the long-term debt and deposit ratings reflect the
role of systemic support in these ratings.

The rating agency continues to believe that the Turkish government
has a strong willingness and ability to support its banks, if
needed.  However, the changes are part of Moody's global
reassessment of systemic support, which brings the measure of such
support closer in line with Turkey's own debt rating of Ba3.

As part of the rating actions, Moody's also downgraded the short-
term local currency deposit ratings of two banks, and confirmed
the short-term local currency deposit ratings of two others.  Also
confirmed is the long-term local currency rating of the one
remaining bank that constituted the 11 originally placed under
review by Moody's on August 3, 2009.

Moody's also downgraded the national scale long-term ratings of
three banks and confirmed the national scale short-term rating of
one bank.

A detailed list of ratings affected, as well as brief discussions
of the actions on the individual banks, follows below.

                  Upgrade of Stand-Alone Ratings
               Reflects Resilience During Downturn

The upgrades of four of the Turkish banks' stand-alone ratings
reflect the entities' strengthening financial fundamentals and
earnings resilience in the midst of the global recession, which
has plunged the local economy into a steep downturn over the past
year.

Moody's has upgraded the bank financial strength ratings of
Turkiye Is Bankasi to C- from D+ and of Anadolubank to D+ from D.
BFSRs measure a bank's intrinsic financial strength, without
benefit given for the potential of outside support.  They are
expressed on a scale from A to E.

The rating agency also raised the Baseline Credit Assessments of
two other banks, T.C. Ziraat Bankasi (to Baa3 from Ba1) and
Turkiye Vakiflar Bankasi (to Baa3 from Ba1).  BCAs are derived
from BFSRs, but are converted to Moody's traditional Aaa to C
rating scale, which is more detailed.  As such, a BFSR may be
equivalent to more than one BCA.  In these two cases, the gradual
strengthening in the intrinsic financial strength of the two
institutions did not warrant an upgrade in the BFSR, but did allow
a conversion to a higher BCA.

Downgrades of Local Currency Ratings Driven By Revised Systemic
                       Support Assessment

The downgrades of the local currency debt and deposit ratings are
driven by Moody's revision of its approach to systemic support.
They do not reflect any deterioration in the intrinsic strength or
operating performance of the affected entities.  The changes
implied by the revisions are being implemented globally, affecting
50 banking systems, including Turkey.

Moody's explains this new assessment of systemic support in detail
in the Special Comments "Financial Crisis More Closely Aligns Bank
Credit Risk and Government Ratings in Non-Aaa Countries",
published in May 2009, and "Turkish Bank Rating Actions Driven by
Global Review of Systemic Support", published in August 2009.

Moody's continues to believe that most governments are likely to
support their nations' banks to avoid a crisis in the local
payments system.  The probability of such support is an important
part of Moody's credit analysis and it provides an uplift to the
debt and deposit ratings from a bank's standalone level of
strength.  However, the rating agency also believes that the
capacity of a country and its central bank to support its
financial sector during a prolonged systemic crisis is now more
closely aligned with the government's own creditworthiness.

Moody's new systemic support indicator for Turkey is at Ba1, which
is two notches above the government's Ba3 local currency bond
rating.  The two-notch difference between the systemic support
indicator and the government's rating reflects Moody's assessment
of the Turkish government's strong ability and willingness to
support the banking system, its broad array of financial and non-
financial tools and the system's intrinsic strength, demonstrated
during the ongoing crisis and past global downturns.

This view is underpinned by these:

     (i) There is strong political and historical evidence in
         favour of characterizing Turkey as a "highly supportive"
         banking system.  The Turkish government has a track
         record of bailing out depositors and other creditors
         during the 2000-01 banking crisis and the system benefits
         from a high deposit insurance scheme, of up to YTL50,000
         (US$38,700) per account;

    (ii) Swift actions during the recent global crisis have been
         indicative of the continued high priority the government
         places on the health and stability of the financial
         system.  The authorities aggressively cut policy interest
         rates in line with inflation expectations, while
         providing liquidity support to meet the needs of all
         financial institutions;

   (iii) Banking institutions are primarily core-funded in local
         currency, a profile that has helped the system to manage
         the ongoing global financial crisis, despite the riskier
         global environment and some pressure on credit
         fundamentals as a result of the contraction in growth.
         Notwithstanding the marked slowdown in loan origination
         and transaction volumes, the system has been supported by
         low interest rates, high capital levels (18% average
         system BIS ratio in 2008), profitability and strong loan
         loss reserves; and

    (iv) The relatively modest size of the Turkish banking system,
         with an assets-to-GDP ratio of 77% and a loans-to-GDP
         ratio of 39% at the end of 2008, suggests that the risk
         of the crystallization of banking losses on the
         government's balance sheet is only moderate.

Moody's also expects only modest loan growth in Turkey.
Similarly, Moody's anticipates only a moderate deterioration in
banks' asset quality, because of the relatively low level of
indebtedness of Turkish households and corporations.  This should
be well within the banks provisioning ability.  Moreover, the
Turkish banking system is well capitalized, with relatively low
loan-to-deposit and leverage ratios, as well as a small total
foreign exchange-denominated loan book.  The system's short-term
financing requirements are also fairly limited at present.

                     List of Rating Actions

These rating actions were taken:

     (i) Akbank TAS's long-term local currency deposit rating was
         downgraded to Baa1, with a stable outlook, from A3,
         within the context of Moody's global review of the
         systemic support available to banks in non-Aaa systems.
         Its other ratings were unaffected.

Moody's assesses the probability of systemic support as very high,
but this does not result in any rating uplift for the local
currency deposit rating from the Baa1 BCA

     (ii) Anadolubank AS's BFSR was upgraded to D+ from D, which
         maps to a Ba1 BCA.  The bank's Ba1 long-term local
         currency deposit rating was confirmed.  The ratings carry
         a stable outlook.  Its other ratings were unaffected.

The upgrade of the bank's BFSR to D+ is driven by the bank's
satisfactory overall financial fundamentals, underscored by its
good earning power, adequate liquidity profile, good asset quality
and efficiency ratios, as well as its relatively limited exposure,
both on- and off-balance sheet, to its controlling shareholder and
related companies.  It also incorporates Anadolubank's comfortable
equity capital after the capital injection by its owners, against
the sizeable risks and occasional volatility inherent in the
market.  The bank's asset quality remains one of the best in the
system and it has performed well during the ongoing economic
contraction.  The bank's strong capitalization provides adequate
loss absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.

Moody's assesses the probability of systemic support as moderate,
but this does not result in any rating uplift for the local
currency deposit rating from the Ba1 BCA.

   (iii) Asya Katilim Bankasi AS's long-term local currency
         deposit rating was downgraded to Ba2 with a stable
         outlook from Ba1.  The national scale rating was
         downgraded to A3.tr from A1.tr and the short-term rating
         confirmed at TR-1.  The rating actions were taken within
         the context of Moody's global review of the systemic
         support available to banks in non-Aaa systems.  Its other
         ratings were unaffected.

Moody's assess the probability of systemic support as moderate,
which does not result in any uplift for the local currency deposit
rating from the Ba2 BCA.

    (iv) Denizbank AS's long-term local currency deposit rating
         was downgraded to Baa2 with a stable outlook from Baa1,
         within the context of Moody's global review of the
         systemic support available to banks in non-Aaa systems.
         Its other ratings were unaffected.

Moody's assesses the probability of systemic support as moderate
and the probability of support from the parent group Dexia (Dexia
Credit Local, D+/Ba1/A1 negative outlook) as high.  However, this
support assessment does not result in an uplift for the local
currency deposit rating from the Baa2 BCA.

     (v) T.C. Ziraat Bankasi's local currency deposit ratings were
         downgraded to Baa3/Prime-3 with a stable outlook from
         Baa1/Prime-2, within the context of Moody's global review
         of the systemic support available to banks in non-Aaa
         systems.  Its other ratings were unaffected.  Meanwhile,
         its BCA was raised to Baa3 with a stable outlook from
         Ba1.

Ziraat's BCA was raised to Baa3 to reflect the bank's ample
capital and the good earnings that provide an adequate loss
absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.  Furthermore, the bank's asset
quality position continues to be one of the best in the system.
The likely increase in provisioning requirements as its asset
quality deteriorates is well within its provisioning capacity.

According to Moody's, these metrics, together with the bank's
comfortable funding franchise (it possesses the largest retail
deposit base in the country with an 18% market share), continuing
modernization and improvements in its internal process and risk
management practices position it higher up within the D+ BFSR
category, thus mapping to a Baa3 BCA.

The probability of systemic support is assessed as extremely high
however the new systemic support does not result in any additional
rating uplift in the local currency deposit rating from the bank's
Baa3 Baseline Credit Assessment.

    (vi) Turk Ekonomi Bankasi AS's long-term local currency
         deposit rating was downgraded to Baa2 with a stable
         outlook from Baa1, within the context of Moody's global
         review of the systemic support available to banks in non-
         Aaa systems.  Its other ratings were unaffected.

Moody's assesses the probability of support from BNP Paribas
(B/Aa1/on review for downgrade), which is one of the bank's
controlling shareholders, as high, resulting in a one-notch uplift
for the local currency deposit rating from the bank's Baa3 BCA.
Moody's also assesses the probability of systemic support from the
local authorities as high, but this does not result in any
additional rating uplift beyond that provided by the foreign
parent.

   (vii) Turkiye Garanti Bankasi AS's long-term local currency
         deposit rating was downgraded to Baa1 with a stable
         outlook from A3 and its long-term national scale rating
         was downgraded to Aa1.tr from Aaa.tr, within the context
         of Moody's global review of the systemic support
         available to banks in non-Aaa systems.  Its other ratings
         were unaffected.

Moody's assesses the probability of systemic support as very high
and the probability of support from GE Capital Corporation (a
20.85% shareholder in the bank and in joint control with the Dogus
group, which owns 30.52%) as low.  The support assessment does not
result in the local currency deposit ratings receiving any uplift
from the bank's Baa1 BCA.

  (viii) Turkiye Is Bankasi AS's BFSR was upgraded to C- from D+
         (resulting in the BCA being raised to Baa2 from Baa3).
         The bank's long-term local currency deposit rating was
         downgraded to Baa2 with a stable outlook from A3, within
         the context of Moody's global review of the systemic
         support available to banks in non-Aaa systems.  Its
         Prime-2 short-term local currency deposit rating was
         confirmed and its other ratings were unaffected.

    (ix) Turkiye Sinai Kalkinma Bankasi AS's long-term local
         currency deposit rating was downgraded to Baa2 with a
         stable outlook from Baa1, within the context of Moody's
         global review of the systemic support available to banks
         in non-Aaa systems.  Its Prime-2 short-term local
         currency deposit rating was confirmed and its other
         ratings were unaffected.

Moody's assesses the probabilities of systemic and major
shareholder support (from Turkiye Is Bankasi) for Turkiye Sinai
Kalkinma Bankasi as very high, resulting in a one-notch rating
uplift for the long-term local currency deposit rating from the
bank's Baa3 BCA.  According to Moody's Joint Default Analysis, the
probability of systemic support for banks with a controlling
shareholder in the same country is incorporated into the rating
through the parent's local currency deposit rating, which in this
case is Turkiye Is Bankasi's newly upgraded Baa2 local currency
deposit rating.

     (x) Turkiye Vakiflar Bankasi AS's local currency deposit
         ratings were downgraded to Baa3/Prime-3 with a stable
         outlook from Baa1/Prime-2, within the context of Moody's
         global review of the systemic support available to banks
         in non-Aaa systems.  Its other ratings were unaffected.
         Meanwhile, its BCA was raised to Baa3 from Ba1 within the
         D+ BFSR category.

Vakifbank's BCA was raised to Baa3 to reflect the resilience of
its earnings and capital base to the severe economic downturn in
Turkey.  The bank has generated good earnings throughout 2009,
which more than cover its increasing provisioning requirements as
its asset quality deteriorates.  Taken together with the bank's
ample capital, its strong earnings provide it with adequate loss
absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.

Vakifbank's NPL ratio is higher than the banking system's average
level mainly because approximately 1.9% of legacy NPLs on its
balance sheet have not been written off.  The bank reported 5.47%
NPLs at the end of H1 2009, up from 4.57% reported at the end of
2008, versus the sector averages of 4.85% and 3.64% respectively.
As shown by the narrowing gap between Vakifbank's and the sector's
NPLs, the rate of deterioration of the bank's asset quality is
lower than that of the sector.

Furthermore, the bank has a strong franchise with extensive
nationwide reach and a strong presence in key growth segments.  It
has maintained its market share in line with the growth of the
Turkish banking system in recent years, showing the strength of
its franchise and business model.  The strong presence of the bank
in the salary accounts market should continue to support the
performance of the loan portfolio during the projected slow
economic recovery in Turkey.

Moody's assesses the probability of systemic support for Vakifbank
as very high however this does not result in any uplift for the
local currency deposit rating from the bank's Baa3 BCA.

    (xi) Yapi Kredi Bankasi AS's long-term local currency deposit
         rating was downgraded to Baa1 with a stable outlook from
         A3, and its long-term national scale rating was
         downgraded to Aa2.tr from Aaa.tr, within the context of
         Moody's global review of the systemic support available
         to banks in non-Aaa systems.  Its other ratings were
         unaffected.

YKB's Baa1 long-term local currency deposit rating receives a two-
notch uplift from its Baa3 BCA, based on a very high probability
of support from one of its controlling shareholders, UniCredito
Italiano SpA (rated C/A3/Aa3 stable outlook).  Moody's also
assesses the probability of systemic support from the local
authorities as very high, but this does not result in any
additional rating uplift beyond that provided by the foreign
parent.

                     Previous Rating Actions

The last rating action on Akbank TAS was on September 24, 2009,
when the outlook on its B1 long-term foreign currency deposit
rating was changed to positive from stable.

The last rating action on Anadolubank AS was on September 24,
2009, when the outlook on its B1 long-term foreign currency
deposit rating was changed to positive from stable.

The last rating action on Asya Katilim Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Denizbank AS was on September 24, 2009,
when the outlook on its B1 long-term foreign currency deposit
rating was changed to positive from stable.

The last rating action on T.C. Ziraat Bankasi was on September 24,
2009, when the outlook on its B1 long-term foreign currency
deposit rating was changed to positive from stable.

The last rating action on Turk Ekonomi Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Garanti Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Is Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Sinai Kalkinma Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Vakiflar Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Yapi ve Kredi Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

T.C Ziraat Bankasi, and Turkiye Vakiflar Bankasi AS are
headquartered in Ankara, Turkey.  All the other banks are
headquartered in Istanbul, Turkey.

Akbank TAS had total assets of TRY92.7 billion (US$61.0 billion)
under IFRS at the end of December 2008.

Anadolubank AS had total assets of TRY3.8 billion (US$2.5 billion)
under IFRS at the end of December 2008.

Asya Katilim Bankasi AS had total assets of TRY8.1 billion
(US$5.3 billion) under IFRS at the end of December 2008.

Denizbank AS had total assets of TRY24.2 billion (US$15.9 billion)
under BRSA at the end of December 2008.

T.C. Ziraat Bankasi had total assets of TRY104.4 billion
(US$77.6 billion) under BRSA at the end of December 2008.

Turk Ekonomi Bankasi AS had total assets of TRY17.0 billion
(US$11.2 billion) under IFRS at the end of December 2008.

Turkiye Garanti Bankasi AS had total assets of TRY98.2 billion
(US$69.7 billion) under IFRS at the end of December 2008.

Turkiye Is Bankasi AS had total assets of TRY97.5 billion
(US$63.4 billion) under IFRS at the end of December 2008.

Turkiye Sinai Kalkinma Bankasi AS had total assets of
TRY6.3 billion (US$4.2 billion) under IFRS at the end of December
2008.

Turkiye Vakiflar Bankasi AS had total assets of TRY54.6 billion
(US$35.9 billion) under BRSA at the end of December 2008.

Yapi ve Kredi Bankasi AS had total assets of TRY69.9 billion
(US$46.0 billion) under IFRS at the end of December 2008.


TURKIYE IS: Moody's Lifts Bank Financial Strength Rating to 'C-'
----------------------------------------------------------------
Moody's Investors Service has downgraded the long-term local
currency debt and deposit ratings of 10 Turkish banks, while
upgrading the stand-alone ratings of four institutions.  The
changes to the stand-alone ratings reflect the fact that Turkey's
banks have proved relatively resilient thus far to the strains of
the global recession and the resultant national economic downturn.
The changes to the long-term debt and deposit ratings reflect the
role of systemic support in these ratings.

The rating agency continues to believe that the Turkish government
has a strong willingness and ability to support its banks, if
needed.  However, the changes are part of Moody's global
reassessment of systemic support, which brings the measure of such
support closer in line with Turkey's own debt rating of Ba3.

As part of the rating actions, Moody's also downgraded the short-
term local currency deposit ratings of two banks, and confirmed
the short-term local currency deposit ratings of two others.  Also
confirmed is the long-term local currency rating of the one
remaining bank that constituted the 11 originally placed under
review by Moody's on August 3, 2009.

Moody's also downgraded the national scale long-term ratings of
three banks and confirmed the national scale short-term rating of
one bank.

A detailed list of ratings affected, as well as brief discussions
of the actions on the individual banks, follows below.

                  Upgrade of Stand-Alone Ratings
               Reflects Resilience During Downturn

The upgrades of four of the Turkish banks' stand-alone ratings
reflect the entities' strengthening financial fundamentals and
earnings resilience in the midst of the global recession, which
has plunged the local economy into a steep downturn over the past
year.

Moody's has upgraded the bank financial strength ratings of
Turkiye Is Bankasi to C- from D+ and of Anadolubank to D+ from D.
BFSRs measure a bank's intrinsic financial strength, without
benefit given for the potential of outside support.  They are
expressed on a scale from A to E.

The rating agency also raised the Baseline Credit Assessments of
two other banks, T.C. Ziraat Bankasi (to Baa3 from Ba1) and
Turkiye Vakiflar Bankasi (to Baa3 from Ba1).  BCAs are derived
from BFSRs, but are converted to Moody's traditional Aaa to C
rating scale, which is more detailed.  As such, a BFSR may be
equivalent to more than one BCA.  In these two cases, the gradual
strengthening in the intrinsic financial strength of the two
institutions did not warrant an upgrade in the BFSR, but did allow
a conversion to a higher BCA.

Downgrades of Local Currency Ratings Driven By Revised Systemic
                       Support Assessment

The downgrades of the local currency debt and deposit ratings are
driven by Moody's revision of its approach to systemic support.
They do not reflect any deterioration in the intrinsic strength or
operating performance of the affected entities.  The changes
implied by the revisions are being implemented globally, affecting
50 banking systems, including Turkey.

Moody's explains this new assessment of systemic support in detail
in the Special Comments "Financial Crisis More Closely Aligns Bank
Credit Risk and Government Ratings in Non-Aaa Countries",
published in May 2009, and "Turkish Bank Rating Actions Driven by
Global Review of Systemic Support", published in August 2009.

Moody's continues to believe that most governments are likely to
support their nations' banks to avoid a crisis in the local
payments system.  The probability of such support is an important
part of Moody's credit analysis and it provides an uplift to the
debt and deposit ratings from a bank's standalone level of
strength.  However, the rating agency also believes that the
capacity of a country and its central bank to support its
financial sector during a prolonged systemic crisis is now more
closely aligned with the government's own creditworthiness.

Moody's new systemic support indicator for Turkey is at Ba1, which
is two notches above the government's Ba3 local currency bond
rating.  The two-notch difference between the systemic support
indicator and the government's rating reflects Moody's assessment
of the Turkish government's strong ability and willingness to
support the banking system, its broad array of financial and non-
financial tools and the system's intrinsic strength, demonstrated
during the ongoing crisis and past global downturns.

This view is underpinned by these:

     (i) There is strong political and historical evidence in
         favour of characterizing Turkey as a "highly supportive"
         banking system.  The Turkish government has a track
         record of bailing out depositors and other creditors
         during the 2000-01 banking crisis and the system benefits
         from a high deposit insurance scheme, of up to YTL50,000
         (US$38,700) per account;

    (ii) Swift actions during the recent global crisis have been
         indicative of the continued high priority the government
         places on the health and stability of the financial
         system.  The authorities aggressively cut policy interest
         rates in line with inflation expectations, while
         providing liquidity support to meet the needs of all
         financial institutions;

   (iii) Banking institutions are primarily core-funded in local
         currency, a profile that has helped the system to manage
         the ongoing global financial crisis, despite the riskier
         global environment and some pressure on credit
         fundamentals as a result of the contraction in growth.
         Notwithstanding the marked slowdown in loan origination
         and transaction volumes, the system has been supported by
         low interest rates, high capital levels (18% average
         system BIS ratio in 2008), profitability and strong loan
         loss reserves; and

    (iv) The relatively modest size of the Turkish banking system,
         with an assets-to-GDP ratio of 77% and a loans-to-GDP
         ratio of 39% at the end of 2008, suggests that the risk
         of the crystallization of banking losses on the
         government's balance sheet is only moderate.

Moody's also expects only modest loan growth in Turkey.
Similarly, Moody's anticipates only a moderate deterioration in
banks' asset quality, because of the relatively low level of
indebtedness of Turkish households and corporations.  This should
be well within the banks provisioning ability.  Moreover, the
Turkish banking system is well capitalized, with relatively low
loan-to-deposit and leverage ratios, as well as a small total
foreign exchange-denominated loan book.  The system's short-term
financing requirements are also fairly limited at present.

                     List of Rating Actions

These rating actions were taken:

     (i) Akbank TAS's long-term local currency deposit rating was
         downgraded to Baa1, with a stable outlook, from A3,
         within the context of Moody's global review of the
         systemic support available to banks in non-Aaa systems.
         Its other ratings were unaffected.

Moody's assesses the probability of systemic support as very high,
but this does not result in any rating uplift for the local
currency deposit rating from the Baa1 BCA

     (ii) Anadolubank AS's BFSR was upgraded to D+ from D, which
         maps to a Ba1 BCA.  The bank's Ba1 long-term local
         currency deposit rating was confirmed.  The ratings carry
         a stable outlook.  Its other ratings were unaffected.

The upgrade of the bank's BFSR to D+ is driven by the bank's
satisfactory overall financial fundamentals, underscored by its
good earning power, adequate liquidity profile, good asset quality
and efficiency ratios, as well as its relatively limited exposure,
both on- and off-balance sheet, to its controlling shareholder and
related companies.  It also incorporates Anadolubank's comfortable
equity capital after the capital injection by its owners, against
the sizeable risks and occasional volatility inherent in the
market.  The bank's asset quality remains one of the best in the
system and it has performed well during the ongoing economic
contraction.  The bank's strong capitalization provides adequate
loss absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.

Moody's assesses the probability of systemic support as moderate,
but this does not result in any rating uplift for the local
currency deposit rating from the Ba1 BCA.

   (iii) Asya Katilim Bankasi AS's long-term local currency
         deposit rating was downgraded to Ba2 with a stable
         outlook from Ba1.  The national scale rating was
         downgraded to A3.tr from A1.tr and the short-term rating
         confirmed at TR-1.  The rating actions were taken within
         the context of Moody's global review of the systemic
         support available to banks in non-Aaa systems.  Its other
         ratings were unaffected.

Moody's assess the probability of systemic support as moderate,
which does not result in any uplift for the local currency deposit
rating from the Ba2 BCA.

    (iv) Denizbank AS's long-term local currency deposit rating
         was downgraded to Baa2 with a stable outlook from Baa1,
         within the context of Moody's global review of the
         systemic support available to banks in non-Aaa systems.
         Its other ratings were unaffected.

Moody's assesses the probability of systemic support as moderate
and the probability of support from the parent group Dexia (Dexia
Credit Local, D+/Ba1/A1 negative outlook) as high.  However, this
support assessment does not result in an uplift for the local
currency deposit rating from the Baa2 BCA.

     (v) T.C. Ziraat Bankasi's local currency deposit ratings were
         downgraded to Baa3/Prime-3 with a stable outlook from
         Baa1/Prime-2, within the context of Moody's global review
         of the systemic support available to banks in non-Aaa
         systems.  Its other ratings were unaffected.  Meanwhile,
         its BCA was raised to Baa3 with a stable outlook from
         Ba1.

Ziraat's BCA was raised to Baa3 to reflect the bank's ample
capital and the good earnings that provide an adequate loss
absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.  Furthermore, the bank's asset
quality position continues to be one of the best in the system.
The likely increase in provisioning requirements as its asset
quality deteriorates is well within its provisioning capacity.

According to Moody's, these metrics, together with the bank's
comfortable funding franchise (it possesses the largest retail
deposit base in the country with an 18% market share), continuing
modernization and improvements in its internal process and risk
management practices position it higher up within the D+ BFSR
category, thus mapping to a Baa3 BCA.

The probability of systemic support is assessed as extremely high
however the new systemic support does not result in any additional
rating uplift in the local currency deposit rating from the bank's
Baa3 Baseline Credit Assessment.

    (vi) Turk Ekonomi Bankasi AS's long-term local currency
         deposit rating was downgraded to Baa2 with a stable
         outlook from Baa1, within the context of Moody's global
         review of the systemic support available to banks in non-
         Aaa systems.  Its other ratings were unaffected.

Moody's assesses the probability of support from BNP Paribas
(B/Aa1/on review for downgrade), which is one of the bank's
controlling shareholders, as high, resulting in a one-notch uplift
for the local currency deposit rating from the bank's Baa3 BCA.
Moody's also assesses the probability of systemic support from the
local authorities as high, but this does not result in any
additional rating uplift beyond that provided by the foreign
parent.

   (vii) Turkiye Garanti Bankasi AS's long-term local currency
         deposit rating was downgraded to Baa1 with a stable
         outlook from A3 and its long-term national scale rating
         was downgraded to Aa1.tr from Aaa.tr, within the context
         of Moody's global review of the systemic support
         available to banks in non-Aaa systems.  Its other ratings
         were unaffected.

Moody's assesses the probability of systemic support as very high
and the probability of support from GE Capital Corporation (a
20.85% shareholder in the bank and in joint control with the Dogus
group, which owns 30.52%) as low.  The support assessment does not
result in the local currency deposit ratings receiving any uplift
from the bank's Baa1 BCA.

  (viii) Turkiye Is Bankasi AS's BFSR was upgraded to C- from D+
         (resulting in the BCA being raised to Baa2 from Baa3).
         The bank's long-term local currency deposit rating was
         downgraded to Baa2 with a stable outlook from A3, within
         the context of Moody's global review of the systemic
         support available to banks in non-Aaa systems.  Its
         Prime-2 short-term local currency deposit rating was
         confirmed and its other ratings were unaffected.

    (ix) Turkiye Sinai Kalkinma Bankasi AS's long-term local
         currency deposit rating was downgraded to Baa2 with a
         stable outlook from Baa1, within the context of Moody's
         global review of the systemic support available to banks
         in non-Aaa systems.  Its Prime-2 short-term local
         currency deposit rating was confirmed and its other
         ratings were unaffected.

Moody's assesses the probabilities of systemic and major
shareholder support (from Turkiye Is Bankasi) for Turkiye Sinai
Kalkinma Bankasi as very high, resulting in a one-notch rating
uplift for the long-term local currency deposit rating from the
bank's Baa3 BCA.  According to Moody's Joint Default Analysis, the
probability of systemic support for banks with a controlling
shareholder in the same country is incorporated into the rating
through the parent's local currency deposit rating, which in this
case is Turkiye Is Bankasi's newly upgraded Baa2 local currency
deposit rating.

     (x) Turkiye Vakiflar Bankasi AS's local currency deposit
         ratings were downgraded to Baa3/Prime-3 with a stable
         outlook from Baa1/Prime-2, within the context of Moody's
         global review of the systemic support available to banks
         in non-Aaa systems.  Its other ratings were unaffected.
         Meanwhile, its BCA was raised to Baa3 from Ba1 within the
         D+ BFSR category.

Vakifbank's BCA was raised to Baa3 to reflect the resilience of
its earnings and capital base to the severe economic downturn in
Turkey.  The bank has generated good earnings throughout 2009,
which more than cover its increasing provisioning requirements as
its asset quality deteriorates.  Taken together with the bank's
ample capital, its strong earnings provide it with adequate loss
absorption capacity in light of Moody's stress tests on its
earnings, risk assets and capital.

Vakifbank's NPL ratio is higher than the banking system's average
level mainly because approximately 1.9% of legacy NPLs on its
balance sheet have not been written off.  The bank reported 5.47%
NPLs at the end of H1 2009, up from 4.57% reported at the end of
2008, versus the sector averages of 4.85% and 3.64% respectively.
As shown by the narrowing gap between Vakifbank's and the sector's
NPLs, the rate of deterioration of the bank's asset quality is
lower than that of the sector.

Furthermore, the bank has a strong franchise with extensive
nationwide reach and a strong presence in key growth segments.  It
has maintained its market share in line with the growth of the
Turkish banking system in recent years, showing the strength of
its franchise and business model.  The strong presence of the bank
in the salary accounts market should continue to support the
performance of the loan portfolio during the projected slow
economic recovery in Turkey.

Moody's assesses the probability of systemic support for Vakifbank
as very high however this does not result in any uplift for the
local currency deposit rating from the bank's Baa3 BCA.

    (xi) Yapi Kredi Bankasi AS's long-term local currency deposit
         rating was downgraded to Baa1 with a stable outlook from
         A3, and its long-term national scale rating was
         downgraded to Aa2.tr from Aaa.tr, within the context of
         Moody's global review of the systemic support available
         to banks in non-Aaa systems.  Its other ratings were
         unaffected.

YKB's Baa1 long-term local currency deposit rating receives a two-
notch uplift from its Baa3 BCA, based on a very high probability
of support from one of its controlling shareholders, UniCredito
Italiano SpA (rated C/A3/Aa3 stable outlook).  Moody's also
assesses the probability of systemic support from the local
authorities as very high, but this does not result in any
additional rating uplift beyond that provided by the foreign
parent.

                     Previous Rating Actions

The last rating action on Akbank TAS was on September 24, 2009,
when the outlook on its B1 long-term foreign currency deposit
rating was changed to positive from stable.

The last rating action on Anadolubank AS was on September 24,
2009, when the outlook on its B1 long-term foreign currency
deposit rating was changed to positive from stable.

The last rating action on Asya Katilim Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Denizbank AS was on September 24, 2009,
when the outlook on its B1 long-term foreign currency deposit
rating was changed to positive from stable.

The last rating action on T.C. Ziraat Bankasi was on September 24,
2009, when the outlook on its B1 long-term foreign currency
deposit rating was changed to positive from stable.

The last rating action on Turk Ekonomi Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Garanti Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Is Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Sinai Kalkinma Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Turkiye Vakiflar Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

The last rating action on Yapi ve Kredi Bankasi AS was on
September 24, 2009, when the outlook on its B1 long-term foreign
currency deposit rating was changed to positive from stable.

T.C Ziraat Bankasi, and Turkiye Vakiflar Bankasi AS are
headquartered in Ankara, Turkey.  All the other banks are
headquartered in Istanbul, Turkey.

Akbank TAS had total assets of TRY92.7 billion (US$61.0 billion)
under IFRS at the end of December 2008.

Anadolubank AS had total assets of TRY3.8 billion (US$2.5 billion)
under IFRS at the end of December 2008.

Asya Katilim Bankasi AS had total assets of TRY8.1 billion
(US$5.3 billion) under IFRS at the end of December 2008.

Denizbank AS had total assets of TRY24.2 billion (US$15.9 billion)
under BRSA at the end of December 2008.

T.C. Ziraat Bankasi had total assets of TRY104.4 billion
(US$77.6 billion) under BRSA at the end of December 2008.

Turk Ekonomi Bankasi AS had total assets of TRY17.0 billion
(US$11.2 billion) under IFRS at the end of December 2008.

Turkiye Garanti Bankasi AS had total assets of TRY98.2 billion
(US$69.7 billion) under IFRS at the end of December 2008.

Turkiye Is Bankasi AS had total assets of TRY97.5 billion
(US$63.4 billion) under IFRS at the end of December 2008.

Turkiye Sinai Kalkinma Bankasi AS had total assets of
TRY6.3 billion (US$4.2 billion) under IFRS at the end of December
2008.

Turkiye Vakiflar Bankasi AS had total assets of TRY54.6 billion
(US$35.9 billion) under BRSA at the end of December 2008.

Yapi ve Kredi Bankasi AS had total assets of TRY69.9 billion
(US$46.0 billion) under IFRS at the end of December 2008.


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


ALPARY-BM LLC: Creditors Must File Claims by November 13
----------------------------------------------------
Creditors of LLC Alpary-BM (code EDRPOU 33211285) have until
November 13, 2009, to submit proofs of claim to:

         A. Dobrodub
         Insolvency Manager
         Office 18
         Bogomolets Str. 4
         01024 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on September 8, 2009.  The case is docketed
under Case No. 44/551-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Alpary-BM
         Bratislavskaya Str. 8
         02156 Kiev
         Ukraine


DONBASS INDUSTRIAL: Creditors Must File Claims by November 13
-------------------------------------------------------------
Creditors of OJSC Donbass Industrial Chemical Installation (code
EDRPOU 01414672) have until November 13, 2009, to submit proofs of
claim to:

         V. Piteliak
         Insolvency Manager
         Office 4
         Sovetskaya Str. 10
         Bakhchisaray
         AR Krym
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company on September 30, 2009.  The case is docketed
under Case No. 5/113b.

The Court is located at:

         The Economic Court of Donetsk
         Artem Str. 157
         Donetsk
         Ukraine

The Debtor can be reached at:

         OJSC Donbass Industrial Chemical Installation
         Chubar Str. 4
         Slaviansk
         84112 Donetsk
         Ukraine


DWELLING BUILDING-4: Creditors Must File Claims by November 13
--------------------------------------------------------------
Creditors of CJSC Dwelling Building-4 (code EDRPOU 01274194) have
until November 13, 2009, to submit proofs of claim to S. Kaplia,
the company's insolvency manager.

The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company on December 5, 2006.  The case is docketed
under Case No. 10/5639.

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Blvd. 307
         18004 Cherkassy
         Ukraine

The Debtor can be reached at:

         CJSC Dwelling Building-4
         Khomenko Str. 19
         Cherkassy
         Ukraine


KRISTINOVKA AGRICULTURAL: Creditors Must File Claims by Nov. 13
---------------------------------------------------------------
Creditors of OJSC Kristinovka Agricultural Chemistry (code EDRPOU
05491630) have until November 13, 2009, to submit proofs of claim
to S. Kaplia, the company's insolvency manager.

The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company on July 3, 2009.  The case is docketed under
Case No. 14/2672.

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Blvd. 307
         18004 Cherkassy
         Ukraine

The Debtor can be reached at:

         OJSC Kristinovka Agricultural Chemistry
         Gogol Str. 19-a
         Kristinovka
         Cherkassy
         Ukraine


KURS LLC: Creditors Must File Claims by November 13
----------------------------------------------------
Creditors of LLC Kurs (code EDRPOU 14345151) have until
November 13, 2009, to submit proofs of claim to S. Krizhov, the
company's insolvency manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on October 5, 2009.  The case is docketed
under Case No. 44/599-b.

The Court is located at:

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

The Debtor can be reached at:

         LLC Kurs
         Laboratorny Lane 1
         01133 Kiev
         Ukraine


LASCHEVAYA AGRICULTURAL: Creditors Must File Claims by November 13
------------------------------------------------------------------
Creditors of Laschevaya Agricultural LLC (code EDRPOU 03083759)
have until November 13, 2009, to submit proofs of claim to
S. Kaplia, the company's insolvency manager.

The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company on September 13, 2009.  The case is docketed
under Case No. 14/574.

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Blvd. 307
         18004 Cherkassy
         Ukraine

The Debtor can be reached at:

         Laschevaya Agricultural LLC
         Tsentralnaya Str. 1
         Laschevaya
         Talnovsky
         Cherkassy
         Ukraine


NAFTOGAZ OJSC: Fitch Assigns 'B' Rating on Senior Unsec. Bonds
--------------------------------------------------------------
Fitch Ratings has assigned OJSC Naftogaz's US$1.595bn eurobond due
30 September 2014 a final senior unsecured rating of 'B' following
a review of the bond's final documentation.  The Recovery Rating
on the eurobond is 'RR4'.

The bond benefits from an unconditional and irrevocable guarantee
from the government of Ukraine ('B'/Negative).  Naftogaz's Long-
term foreign and local currency Issuer Default ratings are 'CCC'
with Negative Outlook.


POBUTSERVICE DASHEV: Creditors Must File Claims by November 13
--------------------------------------------------------------
Creditors of Dashev Common Enterprise Pobutservice (code EDRPOU
23108929) have until November 13, 2009, to submit proofs of claim
to:

         V. Sovetov
         Insolvency Manager
         Office 11
         K. Marks Str. 59
         Illyintsy
         Vinnitsa
         Ukraine

The Economic Court of Vinnitsa commenced bankruptcy proceedings
against the company on September 31, 2009.  The case is docketed
under Case No. 10/133-09.

The Court is located at:

         The Economic Court of Vinnitsa
         Hmelnitsky Highway 7
         21100 Vinnitsa
         Ukraine

The Debtor can be reached at:

         Dashev Common Enterprise Pobutservice
         Lenin Str. 10
         Dashev
         Illyintsy
         22740 Vinnitsa
         Ukraine


POTASH LLC: Creditors Must File Claims by November 13
----------------------------------------------------
Creditors of LLC Potash (code EDRPOU 21370215) have until
November 13, 2009, to submit proofs of claim to:

         S. Smilianin
         Insolvency Manager
         Office 44
         Uritsky Str. 38
         Uman
         20300 Cherkassy
         Ukraine

The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company on September 22, 2009.  The case is docketed
under Case No. 14/227b.

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko Blvd. 307
         18004 Cherkassy
         Ukraine

The Debtor can be reached at:

         LLC Potash
         Cherniakhovsky Str. 1
         Potash
         Mankovsky
         20109 Cherkassy
         Ukraine


RAKURS-DELTA LLC: Creditors Must File Claims by November 13
-----------------------------------------------------------
Creditors of LLC Rakurs-Delta (code EDRPOU 25376700) have until
November 13, 2009, to submit proofs of claim to:

         D. Shulga
         Insolvency Manager
         Raketnaya Str. 35
         54039 Nikolayev
         Ukraine

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on October 6, 2009.  The case is docketed
under Case No. 5/238/09.

The Court is located at:

         The Economic Court of Nikolayev
         Admiralskaya street 22-a
         54009 Nikolayev
         Ukraine

The Debtor can be reached at:

         LLC Rakurs-Delta
         Lenin Ave. 141-A/1
         Nikolayev
         Ukraine


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


HEATING FINANCE: Moody's Withdraws 'Caa1' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 corporate family rating
and probability of default rating to BDR Thermea BV.  It
simultaneously withdrew the Caa1 CFR and PDR at Heating Finance
plc.  Moody's also upgraded the ratings on Heating Finance's bank
facilities to Ba3 from Caa1, and GBP 100 million mezzanine notes
to B2 from Caa3.  The outlook on all ratings is stable.

The rating actions reflect the completion of the merger between
Baxi -- the parent of Heating Finance - and the De Dietrich Remeha
Group.  BDR Thermea is the holding company for the Baxi group and
DDR group companies.  The assignment of a new CFR and PDR at DDR
Holding, and the simultaneous withdrawal of the CFR and PDR from
Heating Finance, reflect the free movement of cashflow and the
alignment of probability of default for the enlarged group.

The original Baxi shareholders own 40.01% of DDR Holding, with DDR
owning 59.99%.  The lower percentage for Baxi's shareholders
reflects the fact that, although Baxi is a larger company than
DDR, it also had much higher leverage.  The merger, together with
an equity contribution from the Baxi shareholders, has resulted in
BDR Thermea having projected 2009 pro-forma Moody's net
debt/Ebitda of about 2.5x.

In 2008 Baxi generated GBP 939 million of revenue, and DDR
generated EUR 615 million of revenue.  The combined group will be
the third largest heating products business in Europe, with good
market positions in the UK, France, Spain, and Netherlands.  DDR
brings a strong presence in France and the Netherlands,
complementing Baxi's strong presence in the UK and Spain --
although the group will remain more weakly positioned in Germany
and Italy.  In line with the overall European heating market, DDR
Holding's product portfolio will be dominated by boilers, with
contributions also from water heaters, radiators, spare parts and
renewables.  As the group's operations become more integrated over
time, opportunities should develop to extract synergies and also
strengthen the offering in the low carbon energy segment.

As part of the transaction, both Baxi's and DDR's existing
financing arrangements have been retained, with some terms
modified to reflect the merger.  In addition to the rated debt at
Heating Finance, BDR Thermea's other group debt is primarily a
EUR75 million DDR bank facility.  All principal subsidiaries of
BDR Thermea can now borrow under either bank facility, and all
cashflow within the group is available to service group debt.

Within BDR Thermea, each Baxi guarantor company and a number of
the DDR companies will guarantee the bank facilities of Heating
Finance and DDR, as well as the mezzanine notes (on the same
senior/subordinated basis as is currently the case for Heating
Finance).  These debt facilities will continue to benefit from the
security already granted by the Baxi group, plus share pledges by
the DDR guarantors.  However, there will be no guarantees or
security from certain DDR companies, and the guarantees from BDR
Thermea will be limited to prevent any recourse to those
companies.  The DDR companies that provide guarantees represent
about two thirds of DDR's 2008 revenue and over 40% of its Ebitda.
In order to minimize the impact of the absence of guarantees,
those DDR companies not providing guarantees or security will be
restricted in terms of their permitted cash balances as well as
their ability to borrow either directly under the bank facilities
or via intercompany loans.

Moody's anticipates that BDR Thermea will generate significant
free cash flow.  Despite ongoing weakness expected in the mature
UK market, which is the largest for the group, revenue growth
should be driven primarily through recovery in the depressed
German and Italian markets, plus the development of the
replacement cycle in less mature markets such as Spain.  In
Moody's view there is also reasonable scope for cost reduction
through synergies.  As the group's existing financing arrangements
do not permit these funds to be distributed to shareholders,
Moody's anticipates that net debt should reduce fairly rapidly.
However, in Moody's view the group's credit profile will remain
impacted by the uncertainty over the likely future exit of the
Baxi shareholders, and the possible impact on group debt that may
arise depending on the mechanism chosen to facilitate this exit.

The liquidity profile of BDR Thermea is solid.  Following the
equity injection by the Baxi shareholders there is greater
availability under Baxi's GBP75 million revolver, and DDR's
EUR75 million facility is also largely undrawn.  Covenant headroom
for the expanded group should remain ample.  Although Baxi's
revolver expires in December 2010 and the DDR facility expires in
December 2011, Moody's anticipates that the free cash flow
generated should minimize the need to access third-party funding
to refinance Baxi's Tranche B facility (about GBP140 million
equivalent) which matures in December 2011 and Tranche C facility
(about GBP140 million equivalent) which matures in December 2012.
Moody's anticipates that any refinancing considerations may in any
case be incorporated into broader considerations around changes in
shareholding.

The Ba3 rating on Heating Finance's bank facilities reflects the
seniority of those facilities, and with a relatively small quantum
of mezzanine notes.  For the same reason, the B2 rating of the
mezzanine notes is 2 notches lower.

The stable outlook reflects Moody's view that integration of the
two companies should proceed relatively smoothly, given the
consensual nature of the transaction and the good industrial
logic.  Although the ratings are influenced by the uncertainty
around the eventual exit of the Baxi shareholders, in Moody's view
that event is unlikely to occur for some time -- and credit
metrics should improve materially over that period.

The last credit rating announcement for Heating Finance plc was on
June 15, 2009, when the corporate family rating was placed on
review with direction uncertain.

Headquartered in Derby, England, Heating Finance plc is part of
the Baxi Group, a leading European designer and manufacturer of
residential heating and hot water systems.  In 2008, Baxi reported
revenue of about GBP939 million.

Headquartered in Appeldoorn in the Netherlands, BDR Thermea BV is
the holding company for a European heating group that combines the
Baxi group and the De Dietrich Remeha Group.  Pro-forma revenue
for 2008 at current exchange rates was about EUR1685 million.


INMARSAT FINANCE: S&P Assigns 'BB+' Rating on US$650 Mil. Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB+'
debt rating to the proposed US$650 million senior unsecured notes
to be issued by Inmarsat Finance PLC, an indirect subsidiary of
U.K.-based global provider of voice and data mobile satellite
communication services Inmarsat Holdings Ltd. (BB+/Stable/--).
The notes are to be guaranteed on a senior basis by Inmarsat Group
Ltd. and on a senior subordinated basis by Inmarsat Investments
Ltd. (BB+/Stable/--) and certain of its subsidiaries.

At the same time, S&P assigned a recovery rating of '4' to this
debt, indicating S&P's expectation of average (30%-50%) recovery
for creditors in the event of a payment default.  S&P anticipates
that the new notes will be unsecured and subordinated to the
existing senior credit facilities at Inmarsat Investments.

In addition, the issue and recovery ratings on Inmarsat
Investments' senior secured credit facilities remain unchanged at
'BBB' and '1' respectively.

The 'BB+' rating on the new proposed notes is in line with S&P's
corporate credit rating on the parent company.  It is based on
preliminary information and is subject to S&P's satisfactory
review of final documentation.  In the event of any changes to the
amount or terms of the bond, the recovery and issue ratings could
be subject to further review.  S&P understand that all of the
proceeds from the bond issue will be used to repay the outstanding
US$163.7 million callable notes (with an original amount of
US$310.4 million; issued by Inmarsat Finance PLC) and the US$450
subordinated notes (issued by Inmarsat Finance II PLC), which are
both maturing in 2012.

                        Recovery Analysis

The recovery rating on the proposed notes is '4'.

S&P has valued Inmarsat on a going-concern basis, given the nature
of the assets and high barriers to entry in the satellite
communications industry.  S&P believes that a default would most
likely result from excessive leverage (following potential
satellite failures and a significant deterioration in market
conditions, adversely affecting the group's reputation and demand
for its services, increasing price pressure and eroding revenues),
and an inability to refinance the capital structure when the
senior debt instruments mature in 2012.  At the hypothetical point
of default, which reflects considerable stresses applied to the
business, S&P valued the company at about US$1 billion.

The issue-level and recovery ratings on the secured debt take into
account the nature of Inmarsat's assets, the probability of a
restructuring or going-concern sale, documentary protection, and
the anticipated level of prior-ranking liabilities.  The issue-
level and recovery ratings on Inmarsat's unsecured debt take into
consideration the same factors that affect the senior secured
debt, as well as the structural and contractual subordination of
the notes.

Although nominal recoveries for the subordinated notes could
potentially be higher, the recovery rating reflects the limited
documentary protection and the potential for additional senior or
pari passu debt that could be raised in a path to default.


INMARSAT PLC: Moody's Upgrades Corporate Family Rating to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service upgraded Inmarsat plc's Corporate Family
Rating to Ba1 (from Ba2) and assigned a (P) Ba2 to the company's
proposed new issue of US$650 million senior notes due 2017 at the
company's Inmarsat Finance plc subsidiary.  The rating outlook is
now stable.  The rating action reflects Moody's expectation that
Inmarsat will remain well positioned to exploit ongoing demand for
mobile satellite communications services (data applications,
broadband, aeronautical) from a strong market position and that
the company can at least broadly maintain current leverage levels
in a period where scheduled capital expenditure should reduce
visibly.

Inmarsat has remained on a continued good growth trajectory during
the first nine months of 2009 and its revenues from MSS (including
other income) increased by 8.3% during the nine-month period
ending September 30, 2009, over the comparable period last year.
The 9 months results reflect continued strong revenue growth in
the aeronautical sector (+19.5%) as well as in the company's
leasing business (+30%).  The maritime sector also grew +8.2% on
an underlying basis (adjusted for the impact of volume discounts)
despite some negative impact on the global shipping capacity due
to the difficult economic environment as well as declining Mini M
and Inmarsat-B voice services business counterbalanced by the
positive development in new services (FleetBroadband) which saw
higher spending and increased penetration levels.  However, the
Land mobile sector revenues grew only by +1.4% (underlying) during
the period negatively impacted by the discontinuation of R-BGAN,
the reduced traffic levels for GAN high-speed data in Middle East
as well as competition from VSAT and continued decline in the
voice services business.  Ratings and outlook reflect Moody's
expectation that Inmarsat should remain on track to deliver solid
revenue growth for full-year 2009 and beyond supported by its
growing 'demand assigned services' (e.g. Fleet, BGAN and Swift64).

Moody's notes that Inmarsat's Debt/ EBITDA ratio (as calculated by
Moody's) for the LTM period ending June 30, 2009 was maintained at
~3x on a consolidated basis (after 3.2x for the year ending
December 31, 2008).  Given the substantial completion of the
Inmarsat-4-related capex cycle, Inmarsat's free cash flow
generation should improve visibly from 2009 onwards.  The company
has guided towards capex of ~US$150-160 million for full year 2009
(excluding Stratos which generally spends 3-4% of its revenues in
any given year on capex depending on the nature of its contract
wins) compared to gross capex of ~US$235 million in 2008.  Moody's
note that this guidance does not consider potential cash outflows
related to Inmarsat's recently awarded S-band license.  Moody's
would in any case expect Inmarsat to manage its financial exposure
to the S-band project so that current conservative leverage ratios
can be maintained.

The rating also considers the concentrated ownership of the
remaining third-party distribution for Inmarsat's services,
exposure to sector-typical technological risks of satellite
malfunctioning/ breakdown and/or launch failure and competition
from other MSS players as well as increasingly from operators of
fixed satellite services and (on land) from terrestrial cellular
networks.  The rating remains cognizant of the stated intention of
Inmarsat's key shareholder Harbinger Capital Partners, in
partnership with SkyTerra, to make an offer for Inmarsat.  Any
such offer remains subject amongst other things to the
satisfactory outcome of regulatory review.  Moody's will closely
monitor further developments and comment as appropriate.

Moody's regards liquidity at 'Inmarsat Core' as sufficient for its
current needs.  The company entered into new bank facilities in
early November 2009, comprising of a US$200 million term loan and
a US$300 million revolver.  The facilities mature in 2012 after a
US$50 million amortization payment on the term loan in 2011, which
represents the next material scheduled debt repayment for
'Inmarsat Core'.  Immediately after entering into the new facility
'Inmarsat Core' had un-drawn revolving credit facilities of
US$210 million in addition to cash and cash equivalents of
~ US$73 million providing the company with sufficient flexibility
to meet its near-term operating and investment commitments.  The
agency also notes that the company intends to refinance the Senior
Discount Notes (maturity in 2012) at Inmarsat Finance II plc and
the Senior Notes (maturity in 2012) at Inmarsat Finance by issuing
a new US$650 million bond out of Inmarsat Finance resulting in a
significant lengthening of the company's maturity profile.

The agency believes that cash on hand at the Stratos level
(approximately US$85 million at September 30, 2009), unused
revolver capacity and expectations for breakeven free cash flow as
well as financial covenant headroom support sound liquidity for
Stratos.  Liquidity for Stratos is being managed on a stand-alone
basis for the time being.

Ratings affected by the action are:

* Inmarsat plc: CFR to Ba1 (from Ba2)

* Inmarsat Finance plc: - Senior Notes due 2012 to Ba1 (from Ba3);
  LGD 4

* Proposed Senior Notes (P) Ba2

* Inmarsat Finance II plc: Senior Discount Notes due 2012 to Ba2
  (from B1); LGD 5

The last rating action was on May 18, 2009, when Moody's changed
the rating outlook for Inmarsat to positive (from stable).
Inmarsat's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry; ii) the capital structure and
financial risk of the company; iii) the projected performance of
the company over the near to intermediate term; and
iv) management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of Inmarsat's core industry and Inmarsat's ratings are
believed to be comparable to those of other issuers of similar
credit risk.

Headquartered in London, U.K., Inmarsat plc is a leading provider
of global mobile satellite communication services.


LEHMAN BROTHERS: UK Appeals Court Shuns PwC Plan for Lehman Assets
------------------------------------------------------------------
A British appellate court has rejected PricewaterhouseCoopers'
plan to speed up the unwinding of Lehman Brothers Holdings Inc.'s
European branch and distribute the assets to creditors, upholding
a decision by a lower court.

As matters currently stand, the Court of Appeal's ruling means
that the proposed scheme of arrangement cannot be implemented in
its current form, PwC said.

Whether or not they appeal, the Joint Administrators will continue
to develop alternative proposals that would also assist with the
return of client assets. In that regard, work on the "Contractual
Solution" detailed in our update of October 5, 2009 continues and
further updates will be posted to this website in due course. It
remains the intention of the Joint Administrators to put a
contractual solution to creditors by the end of November 2009.

Steven Pearson, Joint Administrator, commented, "I am disappointed
by this ruling as it restricts the options available to the
Administrators for the return of client assets and, in particular,
the degree of protection afforded to clients who receive assets
back from the Company.  However, following the original judgment
we recognised that the proposed scheme was at risk and in the
meantime have worked with the creditors’ committee of LBIE to
develop a credible alternative approach in order to return assets
to clients using approximately the same framework of rules and
timeline as was contained in the proposed scheme.  These
alternative proposals were outlined to affected clients during
October and will be formally launched in an offer circular in the
coming weeks."

Mr. Pearson cautioned, "Unlike the proposed scheme, the
alternative arrangements will only bind those clients who
positively elect to sign-up.  In order to benefit from these
arrangements it is vital that affected clients take the time to
understand what is now being are proposed and, by the end of the
year, sign up to their terms."

In order to keep all options open, the Joint Administrators and
LBIE have made an application to the Court of Appeal for
permission to appeal to the Supreme Court of the United Kingdom.

                       About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

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

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

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

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


LEHMAN BROTHERS: Arc Capital Placed Into Administration
-------------------------------------------------------
Arc Capital and Income plc has announced that it is going into
administration.  The firm focused on delivering structured
investment products to retail investors, including Lehman-backed
structured products.

This announcement follows an extensive Financial Services
Authority review of structured products and subsequent
discussions with the firms.  The FSA's review looked at the UK
structured products market, including those backed by Lehman, and
as part of this review examined the firm's systems and controls
and marketing literature.  As a result, the FSA asked the firm to
assess its financial position in relation to potential claims by
investors with Lehman-backed structured products.

As this firm is now in administration, consumers who had invested
in Lehman-backed products with the firm may be entitled to
compensation from the Financial Services Compensation Scheme.

The firm's administrators, Robin Davis, Melvyn Carter and John
Alexander of Carter Backer Winter LLP will shortly contact all
customers who bought products through this firm, setting out what
they need to do next.

The FSA's Moneymadeclear website provides further information on
what this means for consumers who bought Lehman-backed structured
products and other products from ACI.

Further information on the FSA's structured products review can be
found on the Wider Implications website.  The FSA will
publish the full findings of its review later this month.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

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

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

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

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


LEHMAN BROTHERS: FSA Helps Investors of Structured Products
-----------------------------------------------------------
The Financial Services Authority has announced tough and wide-
ranging action to help investors who received unsuitable advice or
misleading promotional material when they bought a Lehman-backed
structured product, as well as measures to address issues in the
wider structured products market.

This follows an FSA review of the marketing and distribution of
structured products, particularly those backed by Lehman Brothers,
to achieve the best outcome for all investors who were affected by
the insolvency of the firm.

The FSA found significant advice failings on Lehman-backed
products in most of the financial advice firms sampled, as well as
serious deficiencies in the marketing literature provided by a
number of the plan managers selling these products.

As a result, the FSA is taking direct action to address the
detriment this has caused for investors with Lehman-backed
products and robust steps to ensure all future structured products
investors are treated fairly, including:

               Lehman-backed structured products

    * following the FSA's review of their promotional material
      and its subsequent discussions with the firms, three plan
      managers that packaged and marketed Lehman-backed
      structured products -- NDF Administration (NDFA), Defined
      Returns Limited (DRL) and Arc Capital and Income plc (ACI)
      -- have gone into administration.  As a result, investors
      who purchased Lehman-backed structured products through
      these firms may be entitled to compensation from the
      Financial Services Compensation Scheme (FSCS).  The firms'
      administrators are contacting investors with information
      on how this affects them;

    * issuing all firms that gave advice to investors on Lehman-
      backed structured products with a template they should use
      to deal with customer complaints -- it outlines the
      criteria the FSA expects them to use to assess the advice
      they gave to ensure investors are treated fairly and
      consistently;

    * writing to all remaining investors that will not be
      contacted as a result of the plan managers'
      administration, and publishing guidance, to help investors
      consider what steps to take, including making a complaint,
      if they believe they were misled by product literature or
      received unsuitable advice;

    * referring three advice firms to enforcement for giving
      unsuitable advice, and instructing other advisers it
      looked at to review past sales of Lehman-backed structured
      products and pay redress where appropriate;

    * providing clear guidance to all firms advising on
      structured products (both those backed by Lehman Brothers
      and other firms) on the standards it expects them to meet,
      including examples of good and poor practice it identified
      during its review;

      Wider structured products market (non Lehman-backed)

    * writing to the largest sellers of other structured
      products, asking them to examine how they have sold these
      products in the past against the standards reiterated by
      the FSA and, if necessary, to review past sales and
      provide investor redress where appropriate, as well as
      change their approach for future advice and sales;

    * in the course of 2010 the FSA will undertake follow-up
      assessments to ensure that firms are meeting its advice
      standards; and

    * following-up with plan managers where the FSA had concerns
      about their marketing of non Lehman-backed structured
      products, to assess whether firms' current literature
      meets its requirements, and setting out the standards it
      expects firms to meet when designing and marketing
      structured products.

Dan Waters, the FSA's director of conduct risk, said:

"We are committed to ensuring that retail financial services
markets deliver fair outcomes for consumers.  The focus of our
review has been to achieve the best possible outcome for as many
people as possible that invested in structured products backed by
Lehman Brothers.  This is a hugely complex area given the number
of different firms involved, and there is no one-size-fits-all
solution for these investors."

"However, given the failings we have come across in the marketing
and selling of these products, today we are setting out
a package of robust measures to help those who have lost money.
We are also taking decisive action to address issues in the wider
structured products market to ensure that all future investors
will be treated fairly -- and we will not hesitate in taking
action if firms do not take sufficient steps to respond to our
concerns."

                      About Lehman Brothers


                       About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

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

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

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

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


RAND GROUP: Receivership Looms; 150 Jobs at Risk
------------------------------------------------
Market Rasen Mail reports that the The Rand Group Ltd. and its
subsidiaries UCS Civils Ltd. and UCS Plant Ltd. are facing
receivership.

The report relates in its statement Friday the company said it was
"in discussion with their bank concerning their facilities and
expect the position to be formalized shortly".

According to the report, Rand Group is facing financial
difficulties and as such up to 150 of the 220 jobs it supports at
Rand are at risk.

The Rand Group Ltd. is a civil engineering company.


SEMCAN INC: Naston Calls in Pococks to Assist on Restructuring
--------------------------------------------------------------
Semcan Inc. disclosed that its United Kingdom subsidiary, Naston
Limited, has engaged Pococks Chartered Accountants to assist with
the restructuring and possible sale or winding-up of Naston.  In
early December 2009, Naston will be presenting a plan to its
creditors under which the company could enter into a Company
Voluntary Arrangement under UK law.  Certain of its projects would
be completed over the next two years, the net proceeds of which
would be for the benefit of Naston's creditors.

At the end of 2008, Semcan made the decision to divest itself of
Naston, and wrote down the investment during the period ended
June 30, 2009.  The company anticipates a final non cash write
down of US$375,000 for the quarter ended 30th September 2009.

Semcan also announces the successful integration of the ZMI Portec
operations into its Milton facility -- the financial effect of
which result in approximately US$600,000 of annual cost savings.
The full effect of these savings will be felt in fiscal year 2010.

In addition, the corporate office located at 365 Adelaide Street
East, Toronto has now closed and the functions transferred to
Stanco Projects Ltd at 8485 Parkhill Drive, Milton, Ontario,
resulting in further annual cost savings in excess of US$100,000.

Semcan confirms that it has retired all term debt due to Toronto
Dominion Commercial Bank and that the company's sole indebtedness
to TD is its revolving operating line with a limit of US$1.5
million.  Because of the low borrowings the company no longer
meets the criteria set by the National Accounts Division of TD and
have therefore transferred the management of the account to the
bank's Financial Restructuring Group, an intermediate step before
a possible transfer of the account to a regional centre of TD.

                     About Semcan Inc.

Semcan is a worldwide supplier of industrial processes and
environmental solutions with specific emphasis on water
remediation and emission control systems.


STANDARD BANK: Moody's Cuts Bank Financial Strength Rating to 'D'
-----------------------------------------------------------------
Moody's Investors Service has taken these rating actions on
Standard Bank Plc and Standard International Holdings.  (i) For
SBP, the bank financial strength rating was downgraded two notches
to D from C- (mapping to a Ba2 Baseline Credit Assessment), which
triggered a downgrade of the bank deposit ratings also by two
notches to Baa2 from A3; the subordinate rating was downgraded to
Baa3 from Baa1, and the junior subordinate rating to Ba1 from
Baa1.  (ii) For SIH, the issuer rating was downgraded to Baa3 from
Baa1.  All ratings were placed on negative outlook.  This rating
action concluded the reviews on these names initiated on the 12th
of May, 2009.

Moody's said that the rating action reflected increased pressure
in the group's asset quality in the context of its exposure to the
BRIC countries.  Although the bank has not suffered major losses
so far and its provisioning policy has so far sheltered it against
major impairments amidst its loan exposures, Moody's note that net
exposures are heavily dependent on collateralization and risk
mitigation.  Although the group uses extensive collateral
management techniques to minimize its exposures Moody's note the
potential operational difficulties in realizing physical
collateral in some emerging countries, especially in the current,
more volatile markets; This raises concerns about exposure
concentration risks, on a net basis and even more on a gross
basis: There is also concern that gross loan exposures remain
highly concentrated and the total of the 10 largest loans exceeded
tier 1 capital as at H1-2009.

The rating also takes into account that the group's operating
revenues are heavily dependent on trading income.  Moody's note
that the trading performance was relatively robust during the most
volatile period in 2008.  The contribution from global markets
during this year is also expected to be also strong due to the
active trading in emerging markets and commodities.  However,
Moody's note that the earnings stability of these types of
revenues is very low and involves taking market risk, counterparty
and settlement risks with concentrated -- and often difficult to
predict -- losses.

SIH and SBP both heavily rely on a mix of funding from their
group.  In addition the bank is reliant on corporate deposits,
which by nature could be less stable than a typical retail driven
deposit base.  In view of the bank's activities and the
geographies it operates in, this funding mix exposes the bank to a
heightened confidence sensitivity, which is mitigated by the
degree of liquid assets on its balance sheet and group funding
support.  The uplift from SBP's BFSR reflects Moody's assessment
of the very high probability of support from its ultimate parent,
Standard Bank Group Limited (unrated) based in South Africa.

SBP's capitalization levels with a core Tier1-ratio of 9.6% as at
end-2008 appear adequate to absorb a moderate deterioration of its
assets in line with Moody's base assumptions for loss estimates in
the bank's main markets.  However, in light of the above described
risk profile and the inherent risk of the bank's market activities
this capitalization is at the lower end compared to other
wholesale funded global corporate and investment banks.

These ratings were affected:

These ratings for SBP were downgraded and all ratings have a
negative outlook:

  -- Bank financial strength rating to D from C-
  -- Long term bank deposit rating to Baa2 from A3
  -- Subordinate debt rating to Baa3 from Baa1
  -- Junior subordinate debt rating to Ba1 from Baa1

This rating was confirmed with a negative outlook:

  -- Short term bank deposit rating at Prime-2

This rating for SIH was downgraded and the rating has a negative
outlook:

  -- Issuer rating to Baa3 from Baa1

Previous rating actions on the above institutions are:

Moody's last rating action on SBP and SIH was on May 12, 2009,
when Moody's placed them on review for downgrade.

SBP, headquartered in London, had total assets of US$35.1 billion
as at December 2008

SIH, headquartered in Luxembourg, had total assets of
US$40.2 billion as at December 2008.


VEDANTA RESOURCES: Low Q2 Results Won't Move Moody's 'Ba1' Rating
-----------------------------------------------------------------
Moody's Investors Service notes that Vedanta Resources' second-
quarter FY 2010 results were below Moody's expectations.

However, the earnings announcement has no immediate impact on
Vedanta's Ba1 corporate family or Ba2 senior unsecured ratings,
both with stable outlook.

"Although Vedanta's Q2 FY 2010 results came in below Moody's
expectations, the deviation is not significant and does not
warrant a revision in the company's rating or outlook," said Ivan
Palacios, a Moody's AVP/Analyst.

Vedanta reported EBITDA for the six months ended September 30,
2009, of US$746 million, 41% lower than the US$1,272 million
achieved in the same period last year.  However, there was a
slight sequential improvement in profits, with quarterly EBITDA of
US$392 million compared to US$355 million in 1Q2010.

"Moody's expects that the company's performance for FY2010 will be
relatively weak and that its key financial metrics could
temporarily exceed the tolerance level set for the rating," said
Mr. Palacios, also Moody's lead analyst for the company, adding
that "Vedanta's EBITDA generation has been impacted by lower
prices, while at the same time, gross debt has increased as a
result of the company's aggressive expansion strategy."

"However, Moody's expect Vedanta's financial profile to strengthen
again beyond FY2010, as Moody's believe that the adverse operating
conditions have bottomed," said Palacios.

"We expect to see a slow but progressive improvement in
performance in the following quarters, driven by the stabilization
in base metals' prices and demand, and by increased cash flows
from new Vedanta projects to be commissioned in the near term."

"In the event that the expected improvement in credit metrics
beyond FY2010 is delayed due to weaker performance or further
debt-financed expansion plans, such that Debt to EBITDA exceeds 4x
on a sustained basis, negative pressure may build on the current
stable outlook", said Mr. Palacios.

Vedanta benefits from a strengthened liquidity position, with
around US$7 billion in cash and liquid investments as of October
2009, including proceeds from convertible bond issues at Sesa Goa
and Sterlite.  Liquidity has improved as a result of the company's
strategy to pre-fund its capex plans.

Vedanta has demonstrated an impressive ability to tap the capital
markets, both on the equity and debt fronts.  The company raised
US$3.35 billion year to date in the capital markets, and has
US$4.1 billion of undrawn committed facilities.

Moody's had previously noted the tight headroom on the EBITDA to
gross interest covenant at Vedanta's syndicated facility, but
Moody's derived comfort from the company's strong banking
relationships and sufficient liquidity, which would have allowed
it to pay down the syndicated facility in the event that it was
unable to obtain the covenant amendment.  In line with Moody's
expectations, the company has managed to get majority approval
from the banks to reset its covenant.

Moody's last rating action with regard to Vedanta was taken on
June 17, 2009, when the company's Ba1 corporate family and Ba2
senior unsecured ratings were affirmed, with stable outlooks.

Headquartered in London, Vedanta Resources plc is a metals and
mining company focusing on integrated zinc, aluminum, copper, and
iron ore mining, and commercial power generation.  Its operations
are predominantly located in India.  It is listed on the London
Stock Exchange and is 59.35% owned by Volcan Investments Ltd.


VIRGIN MEDIA: Fitch Assigns 'BB' Rating on Two New Senior Notes
---------------------------------------------------------------
Fitch Ratings has assigned Virgin Media Finance Plc's new senior
note issuance of US$600 million and GBP350 million a final rating
of 'BB'.  The Long-term Issuer Default Rating for UK cable
operator Virgin Media Inc. is simultaneously affirmed at 'BB-',
and the Short-term IDR at 'B'.  The Outlook is Positive.

The upsized GBP715 million equivalent issue has been placed in two
tranches: US$600 million 8.375% senior notes and GBP350 million
8.875% senior notes each with a final maturity in 2019.  The new
2019 notes rank equally with the existing 2014 and 2016 senior
notes, and thus the 'BB' rating for the new notes is equivalent to
the existing rating for the 2014 and 2016 notes.  However, Fitch
highlights that the new notes contain a covenant package which,
although broadly consistent with the existing indentures at
outset, provides for a release of certain undertakings should the
notes achieve investment-grade status at a future date.  The net
proceeds of approximately GBP689 million (after fees) are to be
used to redeem a portion of the existing 2014 notes.

These debt ratings have also been affirmed:

  -- Virgin Media Investment Holdings Limited senior secured bank
     facilities: 'BB+'

  -- Virgin Media Finance plc's existing senior unsecured notes,
     due 2014 and 2016: 'BB'


YELL GROUP: Set to Unveil Details of Equity Raising
---------------------------------------------------
Salamander Davoudi at The Financial Times reports that Yell Group
plc is expected to announce the details of its equity raising.

According to the FT, the equity raising has surpassed initial
targets of GBP500 million.  The FT says it is understood that the
directories company, whose top shareholders hold 60% of the
company's stock, has received commitments of over GBP600 million.

The fundraising will take the form of a placing and open offer,
the FT notes.

As reported by the Troubled Company Reporter-Europe on Nov. 4,
2009, the FT said Yell has reached agreement with more than 300
creditors to restructure GBP3.8 billion of its debt.  The FT
disclosed Yell plans to reduce this debt to GBP3.3 billion with
the equity raising, before paying off a further GBP300 million or
so within 18 months.

                        About Yell Group

Headquartered in Reading, England, Yell Group plc --
http://www.yellgroup.com/-- is an international directories
business operating in the classified advertising market through
printed, online, and phone media in the U.K. and the US.  Yell
also owns 100% of TPI (renamed "Yell Publicidad"), the largest
publisher of yellow and white pages in Spain, with operations in
certain countries in Latin America.  Yell's revenue for the twelve
months ended March 31, 2008 was GBP2,219 million and its
Adjusted EBITDA was GBP738.9 million.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on Sept. 29,
2009, Standard and Poor's Ratings Services said that it affirmed
its 'B' long-term corporate credit rating on United Kingdom-based
classified directories publisher Yell Group PLC.  S&P said the
outlook is negative.


* Fried Frank Expands International Finance Practice
----------------------------------------------------
Fried Frank disclosed that Mark Wesseldine will join the Firm's
finance practice as a partner and will be based in London.
Mr. Wesseldine specializes in leveraged finance transactions with
broad experience in all financing disciplines.  Mr. Wesseldine was
previously a partner at Allen & Overy.

Mr. Wesseldine has extensive experience in leveraged acquisitions
and other event driven financings.  Mr. Wesseldine practice
includes advising lenders, investors and borrowers, including
major financial institutions, financial sponsors and corporate
entities, on a wide range of multi-jurisdictional leveraged
buyouts and other complex financing and restructuring
transactions.

"We are delighted to have someone of Mark's caliber join the Firm
as we continue to extend the depth of our global finance practice.
He has worked on some of the largest and most high profile
leveraged transactions in the European market," said Valerie Ford
Jacob, Fried Frank's Chairperson.

" Mr. Wesseldine brings his experience and expertise to a strong
team who have been working on some of the most innovative and
prominent transactions in the market, including advising on the
largest European high yield transaction this year and the first
'amend and extend' bank amendments in Europe," added Managing
Partner, Justin Spendlove.

Fried Frank's financing practice stands out because of its
presence at all levels of the capital structure, working on some
of the most sophisticated and complex deals on behalf of lead
managers, arrangers and private equity sponsors.  Clients include
blue-chip corporations, financial institutions and private equity
funds on a wide array of transactions, including merger and
acquisition, mezzanine, and leveraged financing.

"As a result of the recent disruption to the financial markets, it
is increasingly important for law firms to understand the debt
market on both sides of the Atlantic and are able to apply this
knowledge to transactions. Mr. Wesseldine's appointment is a key
part of our commitment to building our international practice,"
said Fried Frank's Head of Finance, Bill Reindel.

     About Fried, Frank, Harris, Shriver & Jacobson LLP

Fried, Frank, Harris, Shriver & Jacobson LLP --
http://www.friedfrank.com-- is a leading international law firm
with more than 500 attorneys in offices in New York, Washington,
D.C., London, Paris, Frankfurt, Hong Kong and Shanghai. Fried
Frank lawyers regularly represent many of the world's leading
corporations and financial institutions.  The Firm offers legal
counsel on antitrust and competition; bankruptcy and
restructuring; benefits and compensation; corporate matters,
including asset management, capital markets, corporate governance,
financings, mergers and acquisitions, and private acquisitions and
private equity; energy, alternative energy and climate change;
financial institutions; government investigations and regulatory
counseling including internal investigations and monitoring,
securities enforcement and regulation and white-collar criminal
defense; insurance; intellectual property and technology;
international trade; litigation including arbitration and
alternative dispute resolution, commercial litigation,
environmental litigation, government contracts, securities and
shareholder litigation; real estate; tax; and trusts and estates.
The Firm has an association with Huen Wong & Co. in Hong Kong.

                            *********

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 * * *