TCREUR_Public/091223.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, December 23, 2009, Vol. 10, No. 253

                            Headlines



A U S T R I A

OSTREGION INVESTMENTGESELLSCHAFT: Moody's Raises Ratings to 'Ba1'


B U L G A R I A

SOCIETE GENERALE: Fitch Affirms Individual Rating at 'D'


C Z E C H   R E P U B L I C

NORICAN GROUP: Concludes Financial Restructuring Talks


F R A N C E

CMA CGM: Needs US$100MM of U$500 Mln Credit Line Within 10 Days
THOMSON SA: Suppliers, Banks, Creditors Back Restructuring Plan


G E R M A N Y

BAYERISCHE LANDESBANK: Sells 25.2% Landesbank Saar Stake
COMMERZBANK AG: Ordered to Pay JPY3 Mil. Over Rand Mispricing
CONTINENTAL AG: Lender Agreement Won't Affect Fitch's 'B+' Rating
GELDILUX-TS-2007 SA: Moody's Junks Rating on Class E Notes From B2
GENERAL MOTORS: GM to Present Opel Restructuring Plan in January

HSH NORDBANK: Moody's Affirms 'E+' Bank Financial Strength Rating
HYPO REAL: Germany's Soffin Extends Rescue Package By a Year
KLOECKNER & CO: Moody's Affirms 'Ba2' Corporate Family Rating


I T A L Y

ITALFINANCE SECURITISATION: Fitch Junks Rating on Class 1-D Notes
SESTANTE FINANCE: Fitch Junks Ratings on Three Tranches


K A Z A K H S T A N

ALAN INVEST: Creditors Must File Claims by December 30
ASTANA KULAGER: Creditors Must File Claims by December 30
ATF BANK: Fitch Changes Outlook to Stable; Affirms 'D/E' Rating
BTA BANK: Net Loss Widens to US$13.9 Mln This Year, FSA Says
FOOD CONTRACT: Moody's Downgrades Corporate Family Rating to 'Ba3'

KAZAKH AGRARIAN: S&P Downgrades Long-Term Issuer Rating to 'BB'
KEDEN TRANS: Creditors Must File Claims by December 30
LANYSH ENERGY: Creditors Must File Claims by December 30
NEFTE PRODUCT: Creditors Must File Claims by December 30
SEMEY TSEMENT: Creditors Must File Claims by December 30

SIRIUS STAR: Creditors Must File Claims by December 30
SMART CONSUMER: Creditors Must File Claims by December 30
STATE ANNUITY: Fitch Assigns 'BB' Insurer Fin'l Strength Rating
TECH DESIGN: Creditors Must File Claims by December 30
TEMIRBANK AO: CDS Triggered by Failure-to-Pay Credit Event

VOSTOK PROM: Creditors Must File Claims by December 30


K Y R G Y Z S T A N

AL SHANS: Creditors Must File Claims by January 20
HAJY RAVSHAN: Creditors Must File Claims by January 20


L A T V I A

PAREX BANKA: Fitch Affirms Issuer Default Ratings at 'RD'


N E T H E R L A N D S

ARES EUROPEAN: Moody's Keep Ratings on Various Notes
DUCHESS IV: Moody's Cuts Rating on EUR32.8MM Class D Notes to 'B3'
EUROCREDIT CDO: Moody's Cuts Rating on Class R Notes to 'Caa3'


R U S S I A

ARCHANGEL DIAMOND: Wins Confirmation of Chapter 11 Plan
EVRAZ GROUP: Moody's Changes Outlook on 'B1' Rating to Stable
MOBILE TELESYSTEMS: S&P Retains 'BB' Rating on Unsecured Debts
SISTEMA JSFC: S&P Retains 'BB' Rating on Unsec. Debt Instruments
URALSIB-YUG BANK: S&P Affirms 'B/B' Counterparty Credit Ratings

VIMPELCOM-INVEST LLC: S&P Retains 'BB+' Rating on Unsecured Debts


S P A I N

PROMOTORA DE INFORMACIONES: In Advanced Debt Refinancing Talks


S W E D E N

FORD MOTOR: Clears Major Hurdles in Sale of Volvo Unit
SAAB AUTOMOBILE: Sale Cannot Be Concluded


S W I T Z E R L A N D

SES SOLAR: Reports US$120,800 Net Loss in Q3 2009


U N I T E D   K I N G D O M

CHESTER ASSET: S&P Keeps Watch Developing on 'BB'-Rated Notes
GALA CORAL: Board Backs Mezzanine Creditors' Debt Plan
GLOBAL CROSSING UK: Records GBP1.569 Million Net Loss for Q3
GRACECHURCH CARD: S&P Cuts Ratings on Two Classes of Notes to 'B'
GRADUS GROUP: Completes GBP25 Mln Debt-for-Equity Swap

NEWGATE FUNDING: S&P Puts 'BB'-Rated Notes on CreditWatch Positive
SCOTTISH WIDOWS: Moody's Upgrades Junior Debt Rating From 'Ba1'




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A U S T R I A
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OSTREGION INVESTMENTGESELLSCHAFT: Moody's Raises Ratings to 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service has upgraded to Ba1 from Ba2 the ratings
of Ostregion Investmentgesellschaft Nr. 1 S.A. and assigned a
positive outlook.  The upgrade was driven by the the materially
reduced impact that a default by Ambac Assurance UK Limited as
guarantor of the senior secured debt raised by the Issuer would
have.

Bonaventura Strassenerrichtungs-GmbH, entered into a concession
agreement with the Autobahnen- und Schnellstrassen-Finanzierungs
AG to plan, develop, construct and operate a concession route
comprising four motorway sections with a total length of 51.5km in
northern Vienna, Austria as the "Project".  This is part of the
PPP Ostregion Package, comprising four road expansion projects for
a total of 113km of new road construction, representing a network
of urban and inter-urban motorways to the north, south and east of
Vienna.

The Issuer is a financing conduit which raised approximately
EUR775 million of senior secured debt (EUR425 million of bonds and
EUR350 million EIB Loan) to finance the construction phase of the
project.  Total construction costs, including interest & fees
during construction, are close to EUR1 billion.

Scheduled principal and interest payments of the bonds and the EIB
Loan are unconditionally and irrevocably guaranteed by Ambac,
pursuant to financial guarantee insurance policies.  The insured
or "wrapped" rating of the senior debt is the higher of (i)
Ambac's insurance financial strength rating; and (ii) the
underlying rating.  Prior to April 13, 2009, Ambac's rating was
higher than the underlying rating.  However, following Ambac's
downgrade to Ba3 from Baa1 on April 13, 2009, the underlying
rating was higher than Ambac's rating, hence the insured ratings
became equal to the underlying rating.

Following Ambac's downgrade to Caa2 from Ba3 on July 29, 2009,
Moody's was particularly concerned about the senior forward
purchase agreement.  Under the SFPA, the senior forward bond
purchasers agreed to buy and the issuer agreed to sell the bonds
on fixed senior forward purchase dates over time.  The obligation
of a senior forward bond purchaser to purchase the senior forward
purchase bonds on a scheduled forward purchase date is subject to
no Ambac event of default being outstanding.  Given Ambac's low
rating, such a default event is not unlikely.  This could have
potentially affected the remaining funding requirements of the
issuer, thus affecting ProjectCo's ability to complete
construction.  Moody's therefore downgraded the Issuer to Ba2, on
review, direction uncertain on September 8, 2009.

At the time of the downgrade, ProjectCo had to draw down
EUR11.8 million in November 2009 and EUR18 million in May 2010
under the SFPA.  The November and May drawdown were to finish
construction and fill the debt service reserve account,
respectively.

ProjectCo had a meeting with the bondholders to explain and
clarify the situation with Ambac.  Moody's understands that
bondholders accept the situation with the Ambac given that the
Project is performing.  The Issuer successfully completed its
November drawdown under the SFPA and therefore has no longer any
funding needs under the SFPA to complete construction which
considerably reduces the impact of a possible Ambac default.  This
leaves only one more drawdown, in May 2010, the proceeds of which
will be used to fund the DSRA.  Drawdowns from the EIB facility
are scheduled for December (EUR7 million) this year and January
(EUR8 million), June (EUR5 million) next year.  Although
theoretically the EIB can accelerate if Ambac defaults, it is not
expected that the bank will do so.

Moody's understands that construction will be completed on time.
Section S1 East and S2 are completed and the last two sections A5
and S1W are on track to be completed by 1 February next year.

The Issuer's Ba1 rating and positive outlook reflects the fact
that the impact of a possible Ambac default is now less material,
construction seems to be going as planned and completion is
imminent.

The previous rating action was on September 8, 2009 when the
issuer was downgraded to Ba2 from Baa3.


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B U L G A R I A
===============


SOCIETE GENERALE: Fitch Affirms Individual Rating at 'D'
--------------------------------------------------------
Fitch Ratings has affirmed Bulgaria's Societe Generale
Expressbank's ratings at Long-term Issuer Default 'BBB+', Short-
term 'F2', Individual 'D' and Support '2'.  The Outlook remains
Negative.

SGE's IDRs and Support rating reflect Fitch's view of the high
probability of support from its 99.6%-owner, Societe Generale (SG;
rated 'A+'/Outlook Stable), in case of need.  The Negative Outlook
on SGE's Long-term IDR reflects the negative outlook on the
Bulgarian sovereign.  Should Bulgaria's ratings be downgraded,
SGE's Long-term IDRs may also change.

The Individual Rating reflects the bank's integration with SG, its
reasonable franchise, fairly limited market risk and adequate
capitalization.  However, this is offset by SGE's worsening asset
quality, reliance on group funding and declining performance
ratios, as well as some borrower concentration and the
deteriorating operating environment in Bulgaria.

SGE's operating profits decreased by a third in the first nine
months in 2009 compared with a year earlier, as loan growth
reduced and loan impairment charges surged.  The biggest threat
for 2010 profitability is credit costs, which, coupled with lower
growth from business volumes when compared to prior years, will
put significant pressure on profitability.

Fitch notes that risk management benefits from SG's input and
oversight, however, non-performing loans, (loans overdue by 90
days) increased significantly to 3% of gross loans at end-9M09,
though this ratio remains better than peers'.  These were 77%
covered at end-9M09.  Fitch Ratings expects NPLs to continue to
increase as unemployment rises and the operating environment in
Bulgaria deteriorates.  Additionally, loans in foreign currency
could be a cause for concern if there were to be any change in the
peg between the euro and the Bulgarian lev.  Appetite for market
risk at SGE is limited.

Funding is largely sourced from contractually short-term (less
than one year) customer deposits.  However, group funding is
significant and is to some extent used to fund growth in
operations.  Liquidity is tight but potential support from SG
provides comfort.  Tier 1 and eligible capital ratios improved to
adequate levels of 9.7% and 12.2%, respectively, at end-9M09
following a capital increase in June 2009 from SG.  SGE aims for a
Tier 1 ratio of at least 8%, which Fitch views as only an adequate
level, given the bank's risk profile.

Founded in 1993, SGE is the eighth-largest bank in Bulgaria by
assets (market share of 3.8% at end-9M09).  It had a network of
147 outlets across the main Bulgarian cities and is headquartered
in Varna.  SGE is well integrated into SG, which has owned its
stake since 1999 and provides much of the key management.


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C Z E C H   R E P U B L I C
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NORICAN GROUP: Concludes Financial Restructuring Talks
------------------------------------------------------
Norican Group said Tuesday it has concluded its financial
restructuring negotiations with the support of its equity
investors and existing lenders.

"This is a tremendous vote of confidence in the business by both
our equity investors and our debt providers", commented Robert E.
Joyce Jr., chief executive officer, Norican Group.  "Successfully
completing this transaction ensures an uninterrupted delivery of
value to our customers throughout the world during this
unprecedented economic slowdown."

"We are pleased with the outcome of this process.  This
refinancing reinforces our 100 year history and allows us to
continue our approach of investing in the future of our business
and that of our customers and suppliers" added Andrew J.
Matsuyama, chief financial officer.

"The new transaction, concluded with the banks will significantly
increase the Company's financial flexibility by better matching
its debt obligations with the operational cash flow generation
profile," added Zbigniew Rekusz, Partner at Mid Europa Partners.
"Significant equity contributions from the existing sponsors of
Mid Europa Partners and Mezzanine Management and new money
injection into the business will improve the capital structure and
enhance the financial capabilities of the Norican Group."

Mr. Joyce concluded: "The message to all our existing stakeholders
is business as usual.  Our customers will continue to receive the
high quality technical solutions and on-site support they have
come to expect from us, our staff will continue to deliver the
most innovative products and services in the industry and our
partners will continue to benefit from their ongoing relationship
with us.  Credit goes to our investors (Mid Europa Partners and
Mezzanine Management) and our banking syndicate (Nordea, HSH and
DnB Nor) for recognizing the inherent value creation potential of
this great company.  We all look forward to delivering on this
potential as the global economy recovers."

                     About Mid Europa Partners

Mid Europa Partners -- http://www.mideuropa.com/-- is an
independent private equity investment firm focused on Central and
Eastern Europe, with approximately EUR3.2 billion of assets under
management.  Funds managed or advised by MEP typically invest
EUR50 million to EUR200 million in mature, cash-flow generative
companies with enterprise values ranging from EUR100 million to
EUR1,500 million, which have strong market positions in sectors
with high barriers to entry.

             About Mezzanine Management Central Europe

Mezzanine Management Central Europe --
http://www.mezzmanagement.com/-- is an independent investment
firm and the pioneer of the mezzanine product in the region. It
focuses on providing capital to businesses for expansions and
acquisitions, management-led equity deals, recapitalizations and
buy-outs.  Mezzanine is a Central European subordinated debt
investor with offices in Austria, Hungary, Poland, Romania and the
Ukraine.  It has committed and invested over EUR400 million in 27
companies across eight countries.

                       About Norican Group

Based in Herlev, Denmark Norican Group --
http://www.noricangroup.com/-- provides technology and services
for improving metallic parts.  Currently the offer includes all
forms of parts formation (horizontal, matchplate & vertical
moulding) and surface preparation technologies (airblast,
wheelblast and mass finishing).  Its core branded technology
platforms are DISA and Wheelabrator.  The Company employs more
than 2,000 people over five continents, with major operations in
Canada, China, Czech Republic, Denmark, France, Germany, India,
Poland, Switzerland, UK and USA.


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F R A N C E
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CMA CGM: Needs US$100MM of U$500 Mln Credit Line Within 10 Days
---------------------------------------------------------------
David Whitehouse at Bloomberg News, citing Wansquare, reports that
CMA CGM SA is seeking an advance of US$100 million from banks
within 10 days.

According to Bloomberg, Wansquare said the US$100 million
requested would be part of the US$500 million credit line agreed
last week.

As reported by the Troubled Company Reporter-Europe, Bloomberg
News said the company's lenders agreed to grant US$500 million in
additional credit after founding Chief Executive Officer Jacques
Saade bowed to their demands that he step aside.  Bloomberg
disclosed family-owned CMA said in an e-mailed statement that it
completed an "outline agreement" with banks that will make the
cash available in January.  Bloomberg said CMA would default on
payments if any of its 63 creditor banks invoked the breach of
conditions on about 70% of its US$5.6 billion debt.

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.


THOMSON SA: Suppliers, Banks, Creditors Back Restructuring Plan
---------------------------------------------------------
Ragnhild Kjetland at Bloomberg News reports that Thomson SA won
approval for its restructuring plan from 98.8% of its creditors
committee, paving the way for shareholders to vote on the plan on
Jan. 27.

According to Bloomberg, under the plan, which includes a share
sale, existing owners can retain up to 51% of the company, and not
less than 15%, depending on their participation in that sale.

Bloomberg relates the company said in a statement on Hugin
yesterday's vote came after suppliers and banks approved the plan
Monday.

Under the plan, announced on Dec. 9, Thomson proposes to cut its
gross senior debt by 45% to EUR1.55 billion by selling new shares
for about EUR348 million, Bloomberg discloses.  It also plans to
raise about EUR641 million from notes to senior creditors that
will carry mandatory redemption into shares, and EUR300 million by
selling disposal-proceeds notes, Bloomberg says.

As reported by the Troubled Company Reporter-Europe on Dec. 18,
2009, Thomson filed for Chapter 15 bankruptcy protection before
the U.S. Bankruptcy Court for the Southern District of New York in
Manhattan to shield assets from U.S. lawsuits while it
restructures debt in French court.  Thomas disclosed assets and
debt both exceed US$1 billion.

                       About Thomson SA

France-based Thomson SA -- http://www.thomson.net/- provides
technology, services, and systems to Media & Entertainment (M&E)
clients, including content creators, content distributors and
broadcasters.  It has three principal operating divisions:
Services, Systems (previously Systems & Equipment) and Technology.
The remaining activities are regrouped in two additional segments:
Other and Corporate.  The Services Division offers end-to-end
management of video-related services for its customers in the M&E
industries.  Systems division plays a role in supplying hardware
and software technology for the M&E industries in the areas of
production, delivery, management, transmission, and access.
Technology division includes activities, such as corporate
research; Silicon Solutions: Integrated Circuit design and tuners,
and Software & Technology Solutions: video and audio security
solutions, and other technologies.  In December 2008, the Company
sold its digital film equipment product line.


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G E R M A N Y
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BAYERISCHE LANDESBANK: Sells 25.2% Landesbank Saar Stake
--------------------------------------------------------
Mike Gavin at Bloomberg News reports that Bayerische Landesbank
said in an e-mailed statement Monday it has sold a 25.2% stake in
Landesbank Saar to the German state of Saarland for EUR65 million
(US$93 million).

As reported by the Troubled Company Reporter-Europe on Nov. 12,
2009, Bloomberg News said BayernLB expects to post a full-year net
loss of more than EUR1 billion (US$1.5 billion) on higher
provisions for risky loans and goodwill charges related to its
Hypo Alpe-Adria Bank International unit.  Bloomberg recalled
BayernLB, which owns 67% of Hypo Alpe-Adria, received state aid
from the German government in the credit crunch, and the bailout
is being investigated by the European Union regulator.

On Dec. 16, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Austria said Dec. 14 it would nationalize
Hypo Alpe- Adria and inject as much as EUR450 million (US$659
million) into the company.  Bloomberg disclosed BayernLB,
Germany's second-biggest state-owned lender, agreed to sell its
67% stake for EUR1 and to inject EUR825 million into the business,
following negotiations.  According to Bloomberg, under the
agreement with the Austrian government, BayernLB is injecting the
money by waiving receivables.  It will also maintain a credit line
of about EUR3 billion to the Austrian bank, Bloomberg noted.
Bavarian Premier Horst Seehofer, as cited by Bloomberg, said
Dec. 14 BayernLB had a total loss of EUR3.75 billion on Hypo
Alpe-Adria.

Bayerische Landesbank a.k.a BayernLB -- http://www.bayernlb.de/--
acts as the principal bank to the state of Bavaria and as the
central clearing house for the 75 Bavarian sparkassen (savings
banks).  Also serving corporations, national and local
governments, financial institutions, and real estate firms, the
bank offers a variety of services, including financing, security
underwriting and trading, and risk management.  It provides retail
and private banking services for individuals through its Internet
bank, Deutsche Kreditbank, and through banking subsidiaries in
central and southeastern Europe.  BayernLB's Landesbank Saar
subsidiary (75% owned) provides financing to small and midsized
businesses in the German state of Saarland and in France


COMMERZBANK AG: Ordered to Pay JPY3 Mil. Over Rand Mispricing
-------------------------------------------------------------
The Tokyo Financial Exchange said Monday it will impose a fine of
JPY3 million (US$33,198) on Commerzbank AG for inappropriate
pricing of South Africa's rand versus the Japanese currency.

The exchange, which provides prices for at least 12 currencies,
listed the yen's Oct. 30 closing price at 8.435 per rand, compared
with a level of 11.4562 per rand quoted on Bloomberg.

Bloomberg relates the exchange said the Frankfurt-based bank was
the source of the lower bids for the rand, a mispricing that left
"hundreds" of currency investors with losses, the Nikkei newspaper
reported on Nov. 21.

According to the report, the exchange said the lower bids "stemmed
from a lack of an appropriate system risk management" and breached
rules banning member financial institutions from offering prices
that "deviate sharply"from market prices.

The bourse, as cited by Bloomberg, said it will ban Commerzbank
from market-making services between Dec. 21 and Jan. 3, while
asking the German bank to present a report by Dec. 30 on how to
improve its operations.

On June 22, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported Commerzbank management board member
Markus Beumer said the bank plans to repay state aid of
EUR16.4 billion or US$22.9 billion as early as 2011 if market
conditions are "favorable".  Bloomberg disclosed Mr. Beumer also
said that the bank plans to return to profitability in 2011 "at
the latest."

Bloomberg recalled Commerzbank Chief Executive Officer Martin
Blessing had to seek EUR18.2 billion in capital from the German
government to carry the bank through the financial crisis and the
country's worst recession since World War II.  The January
takeover of Dresdner Bank saddled the company with billions of
euros in toxic assets.

Headquartered in Frankfurt am Main, Germany, Commerzbank AG --
https://www.commerzbank.com/ -- is the parent company of a
financial services group active around the world.  The group's
operating business is organized into six segments providing each
other with mutually beneficial synergies: Private and Business
Customers, Mittelstandsbank, Central and Eastern Europe,
Corporates & Markets, Commercial Real Estate and Public Finance
and Treasury.


CONTINENTAL AG: Lender Agreement Won't Affect Fitch's 'B+' Rating
-----------------------------------------------------------------
Fitch Ratings says Continental AG's agreement with its lenders for
a new loan facility has no impact on its Long-term Issuer Default
Rating and senior unsecured rating of 'B+', respectively, which
the agency is maintaining on Rating Watch Negative.  The Short-
term IDR is 'B' and the Recovery Rating on senior unsecured debt
is 'RR4'.

The ratings were placed on RWN on April 30, 2009 to reflect
Fitch's growing concerns about Continental's financial profile
against the slump in global vehicle production and the agency's
expectation of a protracted weak auto environment.  The RWN also
reflects considerable refinancing risk for Continental's EUR3.5
billion tranche, related to its Siemens VDO acquisition facility,
maturing in August 2010, and ongoing covenant compliance issues.

Fitch says the announcement on 19 December 2009 by Continental
that it has reached an agreement with its lending banks on a new
EUR2.5 billion credit facility as part of a refinancing package
does not presently provide sufficient clarity to resolve the
watches, particularly that Continental's ability to draw under the
new facility is conditional upon the successful implementation of
a capital increase to be completed in Q110.  Fitch, however,
expects that a near-term resolution of the watch status is likely
once the final capital increase details become available.  Fitch
also notes the more favorable terms to Continental following the
amendment by the lending banks of the financial covenants in the
existing facility agreement.

Continental's ratings continue to be supported by its strong
market positions in a broad product portfolio, particularly in
fuel-efficient technology as well as safety.  Fitch also takes
into account Continental's extensive restructuring measures to
support its free cash flow generation, including a sizeable cost-
cutting program and the reduction or postponement of capital
expenditure, R&D spending and dividends.

Continental is one of the five largest global automotive suppliers
with sales of EUR24 billion in FY08 and an adjusted EBIT margin of
7.6%.  It focuses on brake systems, vehicle electronics, power
train and chassis systems, engineering elastomers, and tyres.


GELDILUX-TS-2007 SA: Moody's Junks Rating on Class E Notes From B2
------------------------------------------------------------------
Moody's Investors Service has taken actions on the long-term
credit ratings of these notes issued by Geldilux-TS-2007 S.A.:

  -- EUR4,500,000 Secured Floating Rate Liquidity Notes due 2012,
     downgraded to Aa1 from Aaa; previously on 23 March 2009
     placed under review for possible downgrade;

  -- EUR2,024,400,000 Class A Secured Floating Rate Notes due
     2012, downgraded to Aa1 from Aaa; previously on 23 March 2009
     placed under review for possible downgrade;

  -- EUR21,000,000 Class B Secured Floating Rate Notes due 2012,
     downgraded to Baa2 from A2; previously on 23 March 2009
     placed under review for possible downgrade;

  -- EUR21,000,000 Class C Secured Floating Rate Notes due 2012,
     downgraded to Ba2 from Baa2; previously on 23 March 2009
     placed under review for possible downgrade;

  -- EUR8,400,000 Class D Secured Floating Rate Notes due 2012,
     downgraded to B3 from Ba2; previously on 23 March 2009 placed
     under review for possible downgrade;

  -- EUR4,200,000 Class E Secured Floating Rate Notes due 2012,
     downgraded to Caa3 from B2; previously on 23 March 2009
     placed under review for possible downgrade;

Moody's initially assigned definitive ratings in May 2007.  The
last rating action date was March 23, 2009.

The rating action concludes the review for downgrade which was
initiated on March 23, 2009 as a result of Moody's revision of its
methodology for SME granular portfolios in EMEA (published on
March 17, 2009).

As a result of its revised methodology, Moody's has reviewed its
assumptions for Geldilux-TS-2007 S.A. collateral portfolio, taking
into account anticipation of performance deterioration of the pool
in the current down cycle and sector concentrations including the
real estate sector.  The deterioration of the German economy has
been reflected in Moody's negative sector outlook for the German
SME securitization transactions.

Moody's has reviewed the default probability of the pool of
corporate and SME debtors for Geldilux-TS-2007 S.A. to be
equivalent to a Ba1/Ba2 rating with a remaining weighted average
life of three months.  Moody's also took into account the
portfolio replenishment criteria on industry and obligor
concentrations.  As a consequence, these revised assumptions have
translated into a cumulative mean default assumption of 0.3% over
90 days and a coefficient of variation (defined as the ratio
between the standard deviation and the mean) of 180%.  Moody's
original mean default assumption was 0.05% over 90 days which
corresponded to a Baa2 rating, and the coefficient of variation
was 75%.  The average recovery rate assumption remains unchanged
at 25% on average.  In its analysis, Moody's used a default
distribution derived from CDOROMTM (v2.5), whereas initially, a
lognormal default distribution was applied.

Geldilux-TS-2007 S.A. is a true sale German SME transaction closed
May 3, 2007.  The Class A to Class E Notes were issued to finance
the purchase of receivables arising from the portfolio of short-
term loans denominated in Euros granted by UniCredit Luxembourg
S.A. (A3/P-2/C-/Stable Outlook) to medium-sized companies, small
businesses and individuals mainly in Germany pursuant to their
Euro-Loan program.  Replenishments take place on a daily basis
until the end of the replenishment period in March 2012.  As of
December 2009, the main sector concentration was in the "Real
estate" sector with approximately 33.7% of the pool.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  Moody's ratings address
only the credit risks associated with the transaction.  Other non-
credit risks have not been addressed, but may have a significant
effect on yield to investors.

Moody's is closely monitoring the transaction.


GENERAL MOTORS: GM to Present Opel Restructuring Plan in January
----------------------------------------------------------------
General Motors Corporation's restructuring plan for its Opel and
Vauxhall operations in Europe will be delayed until January 2010,
GM Europe President Nick Reilly said in a blog post dated
December 10, 2009.

"Although we had hoped to have the new business model finalized in
December, it appears that more work needs to be done and further
consultations will not be rushed," Mr. Reilly noted.

GM Europe has said that it will provide a detailed plan for its
European operations by mid-December, AP reported.  GM had angered
officials for backing out of the lengthy negotiations with Magna
International Inc. and Savings Bank of the Russian Federation for
the finalization of the sale of Opel.

Mr. Reilly disclosed that early in December 2009, he met with
Germany Works Council Chairman Klaus Franz a union meeting in
Germany, as well as governmental and European Union officials in
Brussels to discuss viability plans for Opel.  He also noted that
he had visited Opel and Vauxhall sites throughout Europe to
discuss specifics with local plant managers and employee
representatives, and held a day-long meeting with senior Opel
leadership "to strategize on what needs be done now and in the New
Year."

Agreeing to Mr. Franz's opinion, Mr. Reilly thinks that the future
in Europe, as it relates to the Opel operations "looks great."

"To ensure that prosperous future, our company needs great
products and a winning product portfolio, which includes future
technologies and investments."

Opel's restructuring "is going to be one of the largest, most
complex industrial reorganizations in European manufacturing in
years, [affecting] thousands of people and their families; impact
plants and other stakeholders," Mr. Reilly wrote.

Given this, "it looks like an announcement may slip into January,
according to Mr. Reilly.

"This is not a broken promise. It is a pledge to do something
right," he concluded.

In a separate report, GM said that it will not move its European
headquarters to Germany as previously announced, according to the
Associated Press, citing a statement from Opel spokesman Andreas
Kroemer.

"The old headquarters will simply cease to exist in its current
ways.  "All relevant operations of Opel and Vauxhall will be
bundled in Ruesselsheim," Mr. Kroemer added.

Opel and its sister Vauxhall employ around 48,000 people in
Europe, more than 24,000 of them in Germany, the AP noted.

Opel also announced on December 15, 2009, that Walter G. Borst has
been appointed as supervisory board chairman succeeding Carl-Peter
Forster, who left the post in November 2009, following GM's failed
sale of Opel to Magna/Sberbank, the Wall Street Journal reported.

                     About General Motors

General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908.  With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries.  GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling.  GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany.  GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.

GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code.  Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.

At September 30, 2009, GM had US$107.45 billion in total assets
against US$135.60 billion in total liabilities.

                    About Motors Liquidation

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)


HSH NORDBANK: Moody's Affirms 'E+' Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has placed these ratings of HSH Nordbank
AG on review for possible downgrade: the A2 senior debt and
deposit ratings, the A3 rating for subordinated debt and the
Prime-1 short-term rating.  However, "grandfathered" debt is not
affected.

At the same time, Moody's has affirmed HSH's E+ bank financial
strength rating, which carries a developing outlook and currently
maps directly to a B1 stand-alone baseline credit assessment.  In
addition, the rating agency has affirmed the bank's Caa1/negative
rating for hybrid securities.

     Review to Focus on Gradually Declining Support Assumptions

Moody's ratings review will focus on the likelihood and impact of
a gradual decline in the external support assumptions that are
currently incorporated in the debt and deposit ratings.
Currently, the bank's debt and deposit ratings benefit from an
uplift of eight notches from its BCA.

"Specifically, Moody's review will assess the probability of
future external support from the current owners, most prominently
the State of Schleswig-Holstein and Hamburg, and of co-operative
support," explained Uwe Barth, a Moody's Assistant Vice President
and lead analyst for German banks.

The rating agency is concerned that, going forward, both potential
sources of external assistance may not be as readily available in
future.  Moody's notes that the State of Schleswig-Holstein and
Hamburg recently provided HSH with a EUR3 billion capital
injection and a risk shield amounting to EUR10 billion.  Given the
support providers' own stretched balance sheets and available
financial flexibility, this support was substantial and therefore
reduces the likelihood of future support.

"Moreover, there is an increasing likelihood that the public
sector owners, which currently hold an 85% share in the bank, will
have to significantly reduce or even dispose of their stakes.
This could be a result of the European Commission's compensation
package in return for state aid approval," explained Mr. Barth.

In addition, the review of HSH's support assumptions is also
triggered by Moody's view that the bank's very high integration
within public-sector support mechanisms will be reduced over time
and that the importance of such supports for the local savings
banks will decrease, given the expected change in ownership.

        Multi-Notch Downgrade for Debt Rating Is Possible

Moody's review could result in a significant change of the
currently "very high" probability of support.  In this case, the
debt and deposit ratings could be affected by more than a
single-notch downgrade.  As a result, the short-term rating could
also be affected, although Moody's does not expect it to drop by
more than one notch.

              Outlook on E+ BFSR Remains Developing,
             and Is a Constraint For The Debt Rating

Moody's acknowledges that HSH has strengthened its financial and
risk profiles and also that senior management will strive to
achieve further improvements.  A major step has already been taken
by bolstering capital adequacy through support measures.  A
further step was management's creation of a sizeable restructuring
unit within the bank to enable HSH to better manage the run-off
process of its non-core assets and activities.  Moody's also notes
that the bank is constantly improving its risk management, with
the aim of reducing its market exposure, and unwinding non-core
positions -- all of which may eventually improve the BFSR.

At this stage, however, several factors are still constraining any
upward rating pressure on Moody's stand-alone assessment:

1.) Ongoing pressurized macroeconomic conditions in all of HSH's
    main operating markets.  This adverse situation may continue
    to seriously hurt the bank's shipping and commercial real
    estate portfolios.

2.) Continued earnings volatility, given the bank's high reliance
    on cyclical, less profitable business segments as well as the
    considerable cost associated with the recent capitalization
    measures and the establishment of the risk shield.

3.) Some concerns over the bank's capability to rebuild an
    adequate funding franchise following the phase-out of the
    government's Financial Market Stabilization Funds liquidity
    support measures.

4.) Swiftly restoring high-quality corporate governance standards
    as well as leadership stability after the notable management
    upheaval over recent months.

Given these constraints, however, there is still a likelihood that
Moody's could over time reposition the B1 stand-alone BCA within
the E+ BFSR category, which ranges from a B1 to B3 stand-alone
assessment.

The uncertainties about the direction of HSH's BFSR are reflected
in the developing outlook.  If the BFSR were to move upwards, this
shift would likely be limited to only a few notches (D level).
Moreover, the positive rating migration of the BFSR may not fully
offset the expected gradual decline in external support.  The
rating action reflects this view.

                          Rating History

Moody's previous rating action on HSH was implemented on
April 23, 2009, when the ratings on bank's long-term debt and
deposit ratings were downgraded to A2 from A1, and its BFSR to E+
from D.

Unaffected by the rating action are HSH's Aa1 ratings for those
obligations that can qualify for the grandfathering of
"Anstaltslast" (a maintenance obligation) and of
"Gewaehrtraegerhaftung" (a guarantee obligation) -- both of which
were abolished in July 2005.  Also unaffected were the bank's Aaa
ratings for obligations guaranteed by the Federal Republic of
Germany.

Headquartered in Hamburg and Kiel, Germany, HSH reported total
assets of around EUR186 billion at September 30, 2009.


HYPO REAL: Germany's Soffin Extends Rescue Package By a Year
------------------------------------------------------------
Oliver Suess at Bloomberg News reports that Hypo Real Estate
Holding AG said Germany's Soffin bank rescue fund and financial
institutions agreed to extend an existing financial rescue package
by a year.

According to Bloomberg, Hypo Real Estate said in an e-mailed
statement Monday that, of an extended liquidity facility of EUR43
billion (US$62 billion), a group of German financial institutions
has subscribed to about EUR23 billion, while the lender's Deutsche
Pfandbriefbank unit will issue EUR20 billion in Soffin-guaranteed
securities.

Hypo Real Estate, as cited by Bloomberg, said the financial rescue
package, which the bank since reduced to EUR95 billion, also
includes EUR52 billion in Soffin guarantees, which will expire by
the end of June 2010.

Bloomberg recalls Germany's bank-rescue fund took full-ownership
of the bank in October following a so-called squeeze-out.  The
company needed a total of EUR102 billion in credit lines and debt
guarantees from the German government and financial institutions
to save it from collapse last year when its Depfa Bank Plc unit
failed to get short-term funding, Bloomberg recounts.

                      About Hypo Real Estate

Germany-based Hypo Real Estate Holding AG (FRA:HRXG) --
http://www.hyporealestate.com/-- is a German holding company for
the Hypo Real Estate Group.  It is an international real estate
financing company, combining commercial real estate financing
products with investment banking.  The Company divides its
operations into three business units: Commercial Real Estate,
which provides real estate financing on the international and
German market; Public Sector & Infrastructure Finance, and Capital
Markets & Asset Management.  Hypo Real Estate Group operates
through a number of subsidiaries, including, among others, Hypo
Real Estate Bank International AG that focuses on Pfandbrief-based
commercial real estate financing in all international markets, and
offers large-volume investment banking and structured finance
transactions; Hypo Real Estate Bank AG that focuses on the
commercial real estate financing and refinancing business in
Germany, and DEPFA Bank plc in Dublin, Ireland, which is a
provider of public finance.


KLOECKNER & CO: Moody's Affirms 'Ba2' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has affirmed the Ba2 corporate family
rating of Kloeckner & Co. S.E.  The outlook has been changed to
stable.

The decision has been prompted by the expectation that the decline
in Kloeckner's performance has bottomed and that its profitability
will become positive again in 2010.  Through a rights issue in mid
2009 (EUR200 million), a convertible bond issue (EUR98 million)
and rigorous working capital management KloeCo's overall capital
structure and liquidity profile have improved significantly.

Liquidity, which was one of the major concerns at the time the
outlook was changed to negative in March 2009, has been improved
considerably with the change of KloeCo's covenants under its bank
and ABS facilities and the very high positive free cash flow
generated, helped by a substantial reduction in net working
capital.  Previous performance based covenants have been replaced
with a gearing covenant.  The company's net adjusted debt has been
reduced significantly from EUR 1.2 billion in 2008 to
EUR464 million per September 30, 2009.

In the third quarter 2009 the company has been able to achieve a
positive EBITDA of EUR17 million as adjusted by Moody's.  Although
markets should improve somewhat in the next year, Moody's remains
cautious about the future development given the fact that
currently a large part of the steel demand is driven by re-
stocking rather than a fundamental turnaround in the industries of
the end customers such as the automotive industry, the engineering
segment and the construction industry.

Moody's notes that the envisaged acquisition of Becker Stahl-
Service Group complements Kloeckner's distribution business and
increases the company's profitability through an upstream
integration leading to less dependency on external steel service
centers.  The transaction is likely to be financed with cash and
will increase net debt levels accordingly.  Going forward
Kloeckner is likely to seek further external growth on an
opportunistic basis.

The current rating incorporates the assumption that in 2010
Kloeckner will not undergo further material acquisitions and in
2011 acquisition spend would not be higher than in 2010.
Moreover, Moody's expects a continued conservative dividend policy
with a low dividend payout ratio.  The stable outlook is based on
the expectation that the company will achieve an adjusted debt/
EBITDA level below 3.5x and RCF/ net adjusted debt above the high
teens in the next financial year.

The rating could be revised down if the company is not successful
in improving its leverage metrics again to levels more
commensurate with the current rating category by improving the
operating performance in the short to medium term.  In addition
pressure on the rating could result from a more aggressive debt-
financed acquisition strategy which would also result in leverage
ratios to be worse than the above mentioned thresholds.

An upgrade could be considered if the company sustainably achieves
an improvement in its debt/EBITDA ratio to below 2.5x.

Kloeckner'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 Kloeckner's core industry and Kloeckner's ratings are
believed to be comparable to those of other issuers of similar
credit risk

Moody's last rating action on Kloeckner was to change the outlook
of the company's Ba2 corporate family rating from stable to
negative on March 11, 2009.

Headquartered in Duisburg, Germany, Kloeckner & Co. SE is one of
the leading independent steel and metal distributors in the
European and North American markets.  In the last twelve months
ending on September 30, 2009, the company reported sales of
EUR4.4 billion and EBITDA of EUR -286 million.


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


ITALFINANCE SECURITISATION: Fitch Junks Rating on Class 1-D Notes
-----------------------------------------------------------------
Fitch Ratings has taken these rating actions with respect to
Italfinance Securitisation Vehicle 2 S.r.l. Series 2007-1's notes:

  -- EUR882.56 million class 1-A floating-rate notes: downgraded
     to 'AA' from 'AAA'; Outlook Stable; assigned Loss Severity
     Rating (LS) of 'LS1'.

  -- EUR125 million class 1-B floating-rate notes: downgraded to
     'BBB' from 'A'; Outlook Stable; assigned 'LS2'.

  -- EUR84.3 million class 1-C floating-rate notes: downgraded to
     'B' from 'BBB'; Outlook Negative; assigned 'LS3'.

  -- EUR27.9 million class 1-D floating-rate notes: downgraded to
     'CCC' from 'BBB-'; assigned Recovery Rating (RR) of 'RR5'.

Italfinance is a securitization of financial lease contracts
originated by Banca Italease S.p.A. and Mercantile Leasing S.p.A
in Italy.

The downgrade reflects the worse-than-expected performance of the
transaction.  Since April 2008, the transaction has being
performing worse than Fitch's base case assumptions for gross and
net defaults.  As of October 2009, the cumulative gross default
ratio stood at 4.52% against a base case of 1.93%, and the
cumulative net default ratio was 2.58% compared to a base case of
1.76%.  During the last interest payment date on October 14, 2009,
the transaction "net cumulative default ratio" was 2.58%, above
the trigger level of 2.5% set for the cash trapping trigger.  As
such, an amount of EUR1.83 million has been trapped in the
"collection account" and will be used at the next IPD as quarterly
available funds to redeem the notes.

Since the closing date, all gross defaults ("defaulted lease
contracts") have been provisioned into the transaction structure.
During the IPDs in October 2008, April, July and October 2009 the
originator bought back a total amount of EUR36.58 million of
defaulted receivables and the resulting proceeds to the issuer
were made part of the quarterly available funds under recoveries.
This allowed the structure to cover all its PDL (Principal
Deficiency Ledger) shortfalls so far.  If this had not been done,
the Fitch ESR (Excess Spread Ratio) would have been negative
during the same quarterly periods (October 2008 -1.32%, April 2009
-0.3%, July 2009 -4.5% and October 2009 -2.29%) and the PDL would
have shown a negative balance in the same periods (October 2008
EUR-5.59 million, April 2009 EUR-1.11 million, July 2009
EUR-15.31 million and October 2009 EUR-7.11 million).

The credit enhancement levels of the rated notes in percentage
terms since July 2008, the start of the amortization period, have
been increasing due to the sequential amortization of the notes.
However, the CE amount available for each rated class has not
changed, compared to the amounts at closing.

Fitch will continue to closely monitor the transaction.


SESTANTE FINANCE: Fitch Junks Ratings on Three Tranches
-------------------------------------------------------
Fitch Ratings has downgraded six and affirmed two tranches from
the Sestante Finance PLC series of Italian RMBS transactions.  The
transactions are backed by residential mortgage loans originated
by Meliorbanca SpA (BBB+/F2).  The ratings are listed below.

The downgrades in Sestante Finance 2 S.r.l. and Sestante Finance 3
S.r.l. are a result of the continued deterioration in the
performance of the underlying collateral portfolios.  Loans in
arrears for more than three months have remained high in
comparison to other Italian RMBS transactions at 5.42% and 5.00%,
respectively for Sestante 2 and 3 in October 2009.  Defaults in
the Sestante series transactions are defined as loans in arrears
by more than 12 months.  Reported cumulative net defaults have
risen to 3.48% and 3.31% in October 2009 from 2.94% and 2.85% in
July 2009, respectively.

The Sestante series transactions feature a provisioning mechanism
to write off defaulted loans using available revenue funds.
Although this is a positive feature as it utilizes available
excess revenue, it has also led to the depletion of the cash
reserve fund in both transactions to cover defaulted loans.
Sestante 3 was not able to clear its principal deficiency ledger
(PDL) in October 2009 leaving EUR1.9 million allocated to the
transaction PDL.  Fitch expects continued defaults to be written
to the PDL due to the provisioning mechanism, preventing the
reserve funds from being replenished in the near future.

The significant rating actions taken on the junior C2 notes
reflect Fitch's expectation of increasing defaults and their
impact on the already limited interest available funds.  Although
the Class C2 notes will be receiving interest senior to the PDL
and pari passu with the C1 notes, the targeted amount of principal
allocated to these notes are junior to the PDL in the transactions
priority of payments.  Therefore the expected increase in defaults
and a continuation of low recoveries will hinder payments due on
these notes.  Currently, Sestante 2 has cleared its PDL; however
available revenues were not enough to pay the full C2 principal
target amortization amount in October 2009 and Sestante 3 made no
principal payments to the C2 note in October.  Fitch also notes
the importance of the timing of recoveries expected on the
defaulted loans.  An increase in recoveries in the forthcoming
quarters could significantly improve the cashflow of the
transactions, however given the Agency's recovery timing
expectations for Italy a large increase in recoveries is not
currently expected to occur.  The recovery performance to date has
been poor for both transactions.  So far the reported cumulative
recoveries are 0.33% for Sestante 2 and 0.16% for Sestante 3 as of
October 2009.

Rating actions are:

Sestante Finance 2 S.r.l:

  -- Class A (ISIN IT0003760136): affirmed at 'AAA'; Outlook
     revised to Negative from Stable; assigned a Loss Severity
     Rating of 'LS-1'

  -- Class B (ISIN IT0003760193): downgraded to 'BBB+' from 'A+';
     Outlook Negative; assigned a Loss Severity Rating of 'LS-3'

  -- Class C1 (ISIN IT0003760227): downgraded to 'B' from 'BB+';
     Outlook Negative; assigned a Loss Severity Rating of 'LS-4'

  -- Class C2 (ISIN IT0003760243): downgraded to 'CCC' from 'BB+';
     assigned a Recovery Rating of 'RR5'

Sestante Finance S.r.l - 3:

  -- Class A (ISIN IT0003937452): affirmed at 'AAA'; Outlook
     revised to Negative from Stable; assigned a Loss Severity
     Rating of 'LS-1'

  -- Class B (ISIN IT0003937486): downgraded to 'BBB' from 'A+';
     Outlook Negative; assigned a Loss Severity Rating of 'LS-3'

  -- Class C1 (ISIN IT0003937510): downgraded to 'CCC' from 'BB';
     assigned a Recovery Rating of 'RR4'

  -- Class C2 (ISIN IT0003937569): downgraded to 'CC' from 'BB';
     assigned a Recovery Rating of 'RR5'

Fitch has employed its credit cover multiple methodology in
reviewing the deals to assess the level of credit support
available to each class of notes.


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


ALAN INVEST: Creditors Must File Claims by December 30
------------------------------------------------------
JSC Joint Stock Investment Fund of Risk Investing Alan Invest is
currently undergoing liquidation.  Creditors have until
December 30, 2009, to submit proofs of claim to:

         Timiryazev Str. 15b
         Almaty
         Kazakhstan


ASTANA KULAGER: Creditors Must File Claims by December 30
---------------------------------------------------------
Creditors of LLP Astana Kulager Oil have until December 30, 2009,
to submit proofs of claim to:

         Kravtsov Str. 18
         Astana
         Kazakhstan

The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on September 25, 2009,
after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Astana
         Abai Ave. 36
         Astana
         Kazakhstan


ATF BANK: Fitch Changes Outlook to Stable; Affirms 'D/E' Rating
---------------------------------------------------------------
Fitch Ratings has revised ATF Bank's Outlook to Stable from
Negative.  Fitch has simultaneously affirmed ATF's Long-term
foreign and local currency Issuer Default Ratings at 'BBB'
respectively.  The change in Outlook follows the agency's similar
rating action with respect to Kazahkstan's Outlook.

ATF Bank's IDRs and Support Rating of '2' are driven by potential
support from the bank's ultimate owner, UniCredit S.p.A. (rated
'A'/'F1'/Negative).  Given UC's ability and propensity to provide
support, Fitch believes there is a high probability that support
would be forthcoming, if required.  However, the ability of ATF to
utilise this support to meet obligations to creditors may be
limited by Kazakhstan transfer and convertibility risks, as
reflected in the Country Ceiling of 'BBB'.

ATF's Individual Rating, which Fitch affirmed at 'D/E', reflects
the bank's weak asset quality and its potential further
deterioration due to high borrower concentrations and its exposure
to the construction/real estate sectors, as well as the still
challenging credit environment.  In addition, Fitch notes ATF's
moderate loss absorption capacity and capitalization relative to
the bank's risk profile.  However, the agency also takes into
account some improvements in risk management and better access to
funding following ATF's acquisition by UC in 2007.

The rating actions are:

  -- Long-term foreign currency IDR; affirmed at 'BBB'; Outlook
     revised to Stable from Negative

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

  -- Long-term local currency IDR: affirmed at 'BBB'; Outlook
     revised to Stable from Negative

  -- Senior unsecured debt: affirmed at 'BBB'

  -- Support Rating: affirmed at '2'

  -- Individual Rating: affirmed at 'D/E'

  -- National Long-term rating: affirmed at 'AAA(kaz)'; Outlook
     Stable

  -- National senior unsecured debt rating: affirmed at 'AAA(kaz)'

ATF was the fifth-largest bank in Kazakhstan, holding around 9.7%
of system assets, at end-October 2009.  It is primarily a
corporate bank with 144 outlets, located throughout Kazakhstan.
UC has introduced experienced international senior management into
ATF to take control of its operations and is bringing ATF's
internal procedures in line with the broader UCI group.


BTA BANK: Net Loss Widens to US$13.9 Mln This Year, FSA Says
------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that Kazakhstan's
Financial Supervision Agency said BTA Bank's net loss widened to
KZT2.06 trillion (US$13.9 billion) this year.

BTA, the biggest of four Kazakh lenders to default this year, had
a net loss of 35 billion tenge last month, Bloomberg discloses.

Bloomberg relates the nation's financial regulator said on its Web
site Monday BTA's assets under Kazakh financial standards declined
to KZT2.08 trillion on Dec. 1 from KZT2.95 trillion on the same
date last year.

Bloomberg recalls the state-run National Wellbeing Fund took
control of BTA in February and the bank defaulted in April after
credit markets froze and Kazakhstan's property bubble burst.

                        Debt Restructuring

As reported by the Troubled Company Reporter-Europe on Dec. 10,
2009, Bloomberg News said BTA signed a non-binding agreement with
creditors on options for restructuring its debt.  Bloomberg
disclosed the bank reached a compromise with bondholders that will
give them cash and new securities equal to about half of the
US$11.6 billion they are owed.  Bloomberg said under the
agreement, BTA plans to pay about US$1 billion in cash to the
creditors and issue US$2.3 billion of new senior debt and about
US$797 million of subordinated debt.

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.  The Bank has in its
offer personal banking services, comprised of current accounts,
savings accounts, term deposits, safety deposit boxes, money
transfer services, credit facilities, and corporate banking
services, including business accounts, credit facilities, treasury
services, letters of guarantee, letters of credit, foreign
exchange services, remittances and other solutions, as well as
debt and credit cards, card services and electronic banking
services.  The Bank has 14 subsidiaries and six affiliated
companies.  It offers its services through a network of numerous
regional branches, cash settlement centers throughout Kazakhstan
and international representative offices located in Ukraine,
Russia, China and the United Arab Emirates.


FOOD CONTRACT: Moody's Downgrades Corporate Family Rating to 'Ba3'
------------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating and probability of default rating of JSC National Company
Food Contract Corporation to Ba3 from Ba1.  The outlook on the
company's CFR is stable.  The rating action concludes the review
on the company's rating initiated on July 15, 2009.

The downgrade of FCC's CFR mainly reflects Moody's concerns on the
timeliness of ongoing government support despite taking into
consideration the decision of the Kazakh government to increase
FCC's capital by US$122 million (around KZT18 billion).  While
Moody's believes this increase should allow FCC to maintain
sufficient headroom from March 2010 onwards, the capital increase
has yet to materialize.  Current ratings also assume Moody's
expectation of continuing support from all foreign lending banks,
which granted a waiver to FCC's financial covenants until February
2010 to prevent a breach of its covenants in 2009.

FCC's Debt/Equity ratio increased as a result of the decision of
the Kazakh government to grant a loan to its agency to pre-finance
the 2009 grain harvest.  The loan increased FCC's reported
financial liabilities reducing the headroom under this covenant.

The outlook on the company's rating is stable reflecting Moody's
expectation that the lending banks and the Kazakh Republic will
continue to remain supportive of the company to meet its financial
commitments going forward in a timely manner.

However, Moody's believes negative pressure on the rating could
occur if headroom under the covenants remains limited and/or
support from the Kazakh government does not materialize in a
timely fashion if needed.

The last rating action was implemented on July 15, 2009, when
Moody's downgraded to Ba1 from Baa3 the senior unsecured issuer
rating of FCC.  Concurrently, Moody's withdrew the company's
issuer rating and assigned a Ba1 CFR and PDR to the company.  All
the company's ratings were placed under review for possible
downgrade.

Headquartered in Astana, Kazakhstan, JSC National Company Food
Contract Corporation is fully owned by the Kazakh Republic through
the National Holding KazAgro.  FCC's principal mandate is to
maintain state grain reserves at the levels required to supply
Kazakhstan and to ensure timely grain replenishment.  At the end
of December 2008, FCC employed 1,718 people and reported revenues
at KZT35 billion, up from KZT24 billion the previous year.


KAZAKH AGRARIAN: S&P Downgrades Long-Term Issuer Rating to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term issuer credit and Kazakhstan national scale ratings on
Kazakh Agrarian Credit Corp., a state-owned provider of subsidized
credit to agricultural and nonagricultural businesses in rural
areas throughout the Republic of Kazakhstan (foreign currency
BBB-/Stable/A-3; local currency BBB/Stable/A-3; Kazakhstan
national scale 'kzAAA'), to 'BB' from 'BB+', and to 'kzA+' from
'kzAA-'.  The ratings, including the 'B' short-term issuer credit
rating, remain on CreditWatch with negative implications, where
they were placed on June 16, 2009.

"The downgrade reflects that, contrary to S&P's expectations, KACC
has not finalized its negotiations on its US$136 million loan with
a covenant breached in July," said Standard & Poor's credit
analyst Boris Kopeykin.

The standstill on these negotiations weighs negatively on S&P's
assessment of the likelihood of extraordinary government support.
S&P believes that the government is not paying as much attention
as S&P would have expected to the rapid resolution of the issue.
S&P also believes that pressure on KACC to finalize the deal has
loosened.

S&P has therefore reviewed its assessment of the importance of
KACC's role for the Kazakh government, which S&P now consider as
"important" instead of "very important".  This in turn affects
S&P's assessment of the likelihood of timely and sufficient
extraordinary support from the Kazakh government to KACC, which
S&P now assesses as "high" rather than "very high".

The ratings continue to be constrained by the largely untested
quality of KACC's rapidly expanding loan portfolio in Kazakhstan's
difficult operating environment, and by KACC's high lending
concentration and foreign currency risks.  KACC's very low
balance-sheet liquidity also constrains the ratings.

The ratings are supported by significant ongoing state support to
KACC, and high capitalization.

"The ratings remain on CreditWatch because Commerzbank might
demand immediate repayment of the large US$136 million loan
because of a breached covenant," said Mr. Kopeykin.

Standard & Poor's aims to resolve the CreditWatch placement on
completion of KACC's discussions with Commerzbank, which KACC
reportedly intends to finalize soon, and on S&P's analysis of all
the new terms and conditions of the loan.

If KACC and Commerzbank agree on a new and gradual repayment
schedule for the loan, or if the government provides timely and
sufficient support for an early repayment, then S&P is likely to
affirm the ratings on KACC at the current level with a stable
outlook, after S&P update its analysis of KACC's liquidity risk
and stand-alone credit profile.

"However, if Commerzbank accelerates the loan, and in such case
the government fails to provide sufficient support on a timely
basis, it could default on this obligation," added Mr. Kopeykin.

This would in turn result in S&P's downgrading KACC to 'SD'
(selective default).  S&P continues to consider this scenario to
be unlikely, given the government's repeated statements indicating
support for KACC, as well as tangible signs of support.  However,
the probability of such a scenario is increasing because the
negotiations have already taken much longer than S&P initially
expected.


KEDEN TRANS: Creditors Must File Claims by December 30
------------------------------------------------------
Representation of JSC Keden Trans Service is currently undergoing
liquidation.  Creditors have until December 30, 2009, to submit
proofs of claim to:

         Auezov Str. 46
         Astana
         Kazakhstan


LANYSH ENERGY: Creditors Must File Claims by December 30
--------------------------------------------------------
Creditors of LLP Lanysh Energy have until December 30, 2009, to
submit proofs of claim to:

         The Specialized Inter-Regional
         Economic Court of Aktobe
         Satpaev Str. 16
         Aktobe
         Kazakhstan

The court commenced bankruptcy proceedings against the company on
October 16, 2009.


NEFTE PRODUCT: Creditors Must File Claims by December 30
--------------------------------------------------------
Creditors of LLP Nefte Product Service have until December 30,
2009, to submit proofs of claim.

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 29, 2009,
after finding it insolvent.
The Court is located at:

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

Inquiries can be addressed to 8 (7272) 75-23-99.


SEMEY TSEMENT: Creditors Must File Claims by December 30
--------------------------------------------------------
Creditors of JSC Semey Tsement have until December 30, 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
September 23, 2009.


SIRIUS STAR: Creditors Must File Claims by December 30
------------------------------------------------------
LLP Sirius Star Oil Ltd. is currently undergoing liquidation.
Creditors have until December 30, 2009, to submit proofs of claim
to:

         Drujba Str. 14-5
         Atyrau
         Kazakhstan


SMART CONSUMER: Creditors Must File Claims by December 30
---------------------------------------------------------
Representation of Company Smart Consumer Products FZE is currently
undergoing liquidation.  Creditors have until December 30, 2009,
to submit proofs of claim to:

         Jybek Joly Str. 50
         Almaty
         Kazakhstan


STATE ANNUITY: Fitch Assigns 'BB' Insurer Fin'l Strength Rating
---------------------------------------------------------------
Fitch Ratings has assigned Kazakhstan-based Life Insurance Company
State Annuity Company JSC an International Insurer Financial
Strength rating of 'BB' and a National IFS rating of 'A (kaz)'.
The Outlooks on both ratings are Stable.

The ratings take into account the company's weak standalone
financial profile and the benefit derived from its 100% ownership
by the Kazakhstani Ministry of Labour and Social Protection
(Kazakhstan's long-term Issuer Default Rating is BBB-, Stable
Outlook).  The ratings factor in significant uplift from the
sovereign rating.

In Fitch's view, although State Annuity Company fulfils an
important social role in promoting the development of the
country's life insurance sector, the state would be less likely to
provide support to the company in case of need than to other
state-owned enterprises, even though Fitch expects it would have
the ability to do so.  This reflects State Annuity Company's lower
strategic importance compared with other state-owned enterprises
and lower contribution to GDP on account of its small size.  The
agency recognizes the operational linkage between State Annuity
Company and the Kazakhstani government, including the presence of
government ministers on the board of directors and the capital
support that has been provided to date.

Fitch views State Annuity Company's standalone financial strength
as weak due to the relatively low credit quality of its investment
portfolio, the low diversification of its product offering, its
small absolute size, short operating history and the risks of
participating in a line of business with a long-tail liability
profile for which limited statistical data is available in
Kazakhstan.  However, Fitch notes the company's good market
position and profitable operating performance in 2008 and 2009.

State Annuity Company offers ten insurance products although its
portfolio is constituted almost exclusively of annuity insurance.
Fitch believes that the company has high exposure to investment
risk and longevity risk, particularly in light of its short track
record and limited statistical information on which to base
pricing and reserving.  The agency also notes the weak credit
quality of the corporate bond portfolio (27% of total investments)
and some of the banks with which cash and deposits are placed (35%
of total investments).  In addition, the company's assets and
liabilities are not matched due to the limited range of investment
assets in Kazakhstan.  In 2008, State Annuity Company generated a
profit of KZT23.5 million and Fitch expects the company to record
a profit in FY09.

In Fitch's view, the main triggers for an upgrade or downgrade of
the rating are changes in the standalone financial strength of the
company and changes in Fitch's view of the sovereign.  The rating
is not solely linked to the sovereign rating of Kazakhstan and, as
such, Fitch does not expect that a change in the sovereign rating
would directly lead to a corresponding change in the rating of
State Annuity Company.

State Annuity Company was established in 2005 and is a leading
provider of annuity insurance in Kazakhstan under the framework of
a law on compulsory civil liability insurance for employers for
injury to the life and health of employees in the performance of
work-related duties.  At November 1, 2009 the company had a market
share of 34% for the provision of annuity insurance and had net
assets of KZT1.1 billion.


TECH DESIGN: Creditors Must File Claims by December 30
------------------------------------------------------
Creditors of LLP Tech Design NT have until December 30, 2009, to
submit proofs of claim to:

         Kravtsov Str. 18
         Astana
         Kazakhstan

The Specialized Inter-Regional Economic Court of Astana commenced
bankruptcy proceedings against the company on September 25, 2009,
after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Astana
         Abai Ave. 36
         Astana
         Kazakhstan


TEMIRBANK AO: CDS Triggered by Failure-to-Pay Credit Event
----------------------------------------------------------
Abigail Moses at Bloomberg News, citing the International Swaps &
Derivatives Association, reports that credit-default swaps on
Temirbank have been triggered by a "failure-to-pay credit event."

According to Bloomberg, ISDA said on its Web site Monday the
contracts won't be settled at auction.

As reported by the Troubled Company Reporter-Europe, Bloomberg
News said Temirbank missed debt payments on Nov. 6 and Nov. 9.
Bloomberg disclosed the default followed the "substantial
deterioration" of Temirbank's loan holdings, which pushed
regulatory capital below the required minimum and could have cost
the bank its license.

                         About Temirbank

Temirbank AO (Temirbank JSC) -- http://en.temirbank.kz/-- is a
Kazakhstan-based financial institution rendering a range of
services both to corporate and individual clients.  Corporate
customer services include a cash-settlement services, loans,
documentary operations, safe deposit boxes and cash-in-transit
service.  Retail customer services include deposits, loans, wire
transfers, payment processing services, travelers' checks, safe
deposit boxes and other services in national and foreign
currencies.  It also provides the Internet banking services.  The
Bank operates through 21 branches and 121 centers on banking
services on the territory of Kazakhstan.  Temirbank AO has one
wholly owned subsidiary Temir Capital BV located in the
Netherlands.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Nov. 25,
2009, Fitch Ratings downgraded Kazakhstan-based Temirbank's
Long-term Issuer Default Rating to 'RD' (Restricted Default) from
'CC', thereby resolving the Rating Watch Negative on the rating.


VOSTOK PROM: Creditors Must File Claims by December 30
------------------------------------------------------
Creditors of LLP Vostok Prom Complect have until December 30,
2009, to submit proofs of claim to:

         Utepov Str. 34-29
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of East Kazakhstan
commenced bankruptcy proceedings against the company on
September 25, 2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan


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


AL SHANS: Creditors Must File Claims by January 20
--------------------------------------------------
LLC Al Shans Trans is currently undergoing liquidation.  Creditors
have until January 20, 2010, to submit proofs of claim to:

         Kensai
         Savai
         Kara-Suisky District
         Osh
         Kyrgyzstan


HAJY RAVSHAN: Creditors Must File Claims by January 20
------------------------------------------------------
LLC Hajy Ravshan Meenet is currently undergoing liquidation.
Creditors have until January 20, 2010, to submit proofs of claim
to:

         Manas Street
         Djalal-Abad
         Kyrgyzstan


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


PAREX BANKA: Fitch Affirms Issuer Default Ratings at 'RD'
---------------------------------------------------------
Fitch Ratings has affirmed Parex Banka's Long- and Short-term
Issuer Default Ratings at 'RD' and Norvik Banka's Long- and Short-
term IDRs at 'B'.  Fitch has simultaneously removed Norvik's Long-
term IDR from Rating Watch Negative and removed AS SEB Banka's
Support Rating from RWN.  The agency has assigned Norvik's Long-
term IDR a Negative Outlook.  A full rating breakdown is provided
at the end of this comment.

The removal of RWN from Norvik and AS SEB Banka reflects the fact
that that risks to depositor confidence in Latvia from deposit
restrictions imposed on Parex have been contained and did not lead
to system-wide stress.  Fitch notes that there was nonetheless
some outflow in the system -- in Q309 customer deposits were
reduced by 2.6%, of which non-resident deposits shank by 3.4% and
resident accounts by 1.2% -- although this should be viewed in the
context of the severe recession affecting Latvia's economy.  Fitch
projects a cumulative 27% fall in real GDP during 2008-2010.

The affirmation of Parex's IDRs at 'RD' reflects the extension of
deposit restrictions imposed on the bank by the Latvian banking
regulator till June 30, 2010.  Fitch notes that the restrictions
have been softened gradually since they were first introduced in
December 2008, and that amount of restricted funds dropped about
twofold to LVL330 million (over 600 customers), and apply to pre-
dominantly large non-resident deposits in foreign currency.
However, restricted deposits constitute a material part of the
bank's obligations and Fitch views this as a restricted default.

Parex has been experiencing ongoing deleveraging, losses, pressure
on asset quality, outflow of non-resident deposits (resident
deposits appear more stable), improving but still weak liquidity
and the need to continuously inject fresh capital.  However, the
Latvian authorities have contributed an unprecedented amount of
capital and liquidity in the bank and the sovereign guaranteed
syndicated loans issued by Parex.  The participation of the
European Bank for Reconstruction and Development as a minority
shareholder should also be positive for the bank's risk profile.

Upward pressure on Parex's IDRs could arise from a removal of the
deposit restriction and/or from a successful restructuring of
Parex.

Norvik's ratings and Negative Outlook reflect its significantly
deteriorated asset quality in the notably worsened operating
environment and moderate loss absorption capacity as a result of
low level of reserves.  The ratings also consider its rather
stable deposit base and low refinancing risk.

Norvik's asset quality has continued to deteriorate, and NPLs,
defined as loans more than 90 days overdue, made up 20.3% of gross
lending at end-Q309.  In addition, restructured loans amounted to
11.4% of the total loan book at end-Q309.  Reserve coverage of
NPLs is low at 22% (end-2008: 23%), and uncovered impaired loans
amounted to 70% of the bank's core capital at end-Q309.  However,
most NPLs are secured by collateral in the form of real estate,
vessels and other tangible assets.

Norvik's ratings could be affected by downward pressure due to a
further deterioration in asset quality substantial enough to
negatively impact capitalization of the bank.

In Fitch's opinion there is high probability that support for AS
SEB Banka would be provided by its ultimate parent, Skandinaviska
Enskilda Banken (SEB, 'A+'/Stable) due to its 100% ownership,
strategic importance, close integration and public statements of
support made by the parent.

The rating actions are:

Parex Banka:

  -- Long-term IDR: affirmed at 'RD'
  -- Senior unsecured debt: affirmed at 'CC'/'RR4'
  -- Short-term IDR: affirmed at 'RD'
  -- Individual Rating: affirmed at 'F'
  -- Support Rating: affirmed at '5'
  -- Support Rating Floor: affirmed at 'NF'

Norvik Banka:

  -- Long-term IDR: affirmed at 'B'; removed from RWN; assigned a
     Negative Outlook

  -- Short-term IDR: affirmed at 'B'; removed from RWN

  -- Individual Rating: affirmed at 'D/E'; removed from RWN

  -- Support Rating: affirmed at '5'

  -- Support Rating Floor: affirmed at 'NF'

AS SEB Banka:

  -- Support Rating: affirmed at '2'; removed from RWN

Parex was the third-largest and largest domestically-controlled
bank in Latvia by assets with a 12.5% market share at end-H109.
Since December 2008, it has been majority-owned by the state.  The
EBRD became a minority shareholder in 2009 with a 25% + 1 share.
The bank is in the process of restructuring.

Norvik Banka was the tenth-largest bank by assets in the country,
with a market share of 2.1%, at end-Q309.  Its distribution
network at end-H109 included seven branches and about 68 small
settlement offices, located mainly in commercial outlets.
Straumborg, an Icelandic investment company, is the majority
shareholder.

AS SEB Banka was the second-largest bank by assets in Latvia at
end-H109 with 13.7% market share.  Apart from banking, AS SEB
Banka provides leasing, pension fund and asset management services
as well as life insurance through its subsidiaries.  Its customer
deposit base continued to shrink through 2009, resulting in a
reduction of 20.6% (non-annualized) in the first three quarters of
2009.


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


ARES EUROPEAN: Moody's Keep Ratings on Various Notes
----------------------------------------------------
Moody's Investors Service has determined that the ratings
currently assigned to Ares European CLO II B.V. will not, at this
time, be reduced or withdrawn solely as a result of the execution
of a Supplemental Trust Deed dated as of December 9, 2009.  The
Supplemental Deed allows the Issuer to establish tax blocker
subsidiaries solely to acquire, hold and dispose of certain
securities (such as equity interests in an operating company) it
may receive in a bankruptcy proceeding or restructuring as "Equity
Securities", and is designed to ensure that the Issuer will not be
deemed to be engaged in a U.S. trade or business as a result of an
exchange of collateral obligations for such Equity Securities.

The Issuer is a high yield cash flow collateralized loan
obligation managed by Ares Management Limited

The last Rating Actions for this transaction were taken on
August 4, 2009, when the Class A Senior Secured Floating Rate
Notes were downgraded to Aa2; the Class B Senior Secured Floating
Rate Notes were downgraded to Baa2; the Class C Senior Secured
Deferrable Floating Rate Notes were downgraded to Ba3; the Class D
Senior Secured Deferrable Floating Rate Notes were downgraded to
B3; and the Class Q Combination Notes were downgraded to B2.


DUCHESS IV: Moody's Cuts Rating on EUR32.8MM Class D Notes to 'B3'
------------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Duchess IV CLO B.V.

  -- EUR295.9M Class A-1 First Priority Senior Secured Floating
     Rate Notes due 2020, Downgraded to Aa1; previously on May 19,
     2005 Assigned Aaa

  -- EUR48.2M Revolving Loan Facility due 2020, Downgraded to Aa1;
     previously on May 19, 2005 Assigned Aaa

  -- EUR38M Class B Second Priority Deferrable Secured Floating
     Rate Notes due 2020, Downgraded to Baa1; previously on Mar 4,
     2009 Aa2 Placed Under Review for Possible Downgrade

  -- EUR30.1M Class C Third Priority Deferrable Secured Floating
     Rate Notes due 2020, Downgraded to Ba1; previously on Mar 19,
     2009 Downgraded to Baa3 and Remained On Review for Possible
     Downgrade

  -- EUR32.8M Class D Fourth Priority Deferrable Secured Floating
     Rate Notes due 2020, Downgraded to B3; previously on Mar 19,
     2009 Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- EUR12.5M Class L Combination Notes due 2020, Downgraded to
     A3; previously on Mar 4, 2009 Aa1 Placed Under Review for
     Possible Downgrade

  -- EUR4.977M Class N Combination Notes due 2020, Downgraded to
     A3; previously on Mar 4, 2009 Aa1 Placed Under Review for
     Possible Downgrade

  -- EUR9.634M Class V Combination Notes due 2020, Downgraded to
     A3; previously on Mar 4, 2009 Aa1 Placed Under Review for
     Possible Downgrade

  -- EUR4M Class W Combination Notes due 2020, Downgraded to Ba3;
     previously on Mar 4, 2009 A3 Placed Under Review for Possible
     Downgrade

The rating actions on Class L, Class N and Class V notes align
their ratings to that of Citigroup Global Markets Holdings Inc.
Each of these combination notes consists of Citigroup Global
Markets Holdings Inc EMTN and Class F notes.

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as about 16% mezzanine loan exposure.

The rating actions on the Revolving Loan Facility, Class A-1,
Class B, Class C, Class D and Class W notes 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 these 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 2607), an increase in the amount of defaulted
securities (currently 9% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 6.82% of the portfolio), and a failure of Class E par
value test.  These measures were taken from the recent trustee
report dated November 12, 2009.  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
modeled, qualitative factors are part of the rating committee
considerations.  These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio.  All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.


EUROCREDIT CDO: Moody's Cuts Rating on Class R Notes to 'Caa3'
--------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Eurocredit CDO II B.V.

  -- EUR76M Class I-B Senior Notes, Downgraded to Baa2; previously
     on Mar 4, 2009 Aa2 Placed Under Review for Possible Downgrade

  -- EUR34M Class II Mezzanine Notes, Downgraded to Caa2;
     previously on Mar 20, 2009 Downgraded to B1 and Remained On
     Review for Possible Downgrade

  -- EUR13M Class III Mezzanine Notes, Confirmed at Caa3;
     previously on Mar 20, 2009 Downgraded to Caa3 and Remained On
     Review for Possible Downgrade

  -- EUR25M Class Q Combination Notes (current outstanding rated
     balance EUR 0.8M), Downgraded to Baa3; previously on Dec 14,
     2000 Confirmed at Baa1

  -- EUR14M Class R Combination Notes (current outstanding rated
     balance EUR 7.9M), Downgraded to Caa3; previously on Mar 4,
     2009 Ba3 Placed Under Review for Possible Downgrade

  -- EUR3M Class S Combination Notes (current outstanding rated
     balance EUR 0M), Withdrawn; previously on Dec 14, 2000
     Confirmed at Ba2

The Class Q; R and S Combination Notes have been monitored using
Moody's standard Structured Note methodology.  Therefore, the
ratings on the Combination Notes address the expected loss posed
to investors by the legal final maturity as a proportion of the
Rated Balance, where the Rated Balance is equal on any payment
date to the Rated Balance on the preceding payment date
(increased, for the Class R Combination Notes only by the Rated
Coupon of 7.572% per annum) reduced by the aggregate of all
payments made on such payment date, either through interest or
principal.  These ratings definitions differ from the closing
ratings definitions, as the Class Q and Class S were described as
principal only ratings, and Class R as an expected loss rating
relative to a 7.572% IRR measured as of closing date.  However the
underlying corresponding analytical approaches are fundamentally
equivalent, and the use of the Structured Note Methodology, as
further described in the Moody's Rating Methodology paper listed
below, should be viewed as analytical enhancements to Moody's
analysis.

As the Rated Balance of the Class S Combination Notes has been
reduced to zero following a sufficient amount of cash flow
payments since inception of the transaction, Moody's has withdrawn
its rating on this class of Notes.

This transaction is a managed collateralized loan obligation with
exposure to European senior secured loans, High Yield Securities
(42.5%) as well as some mezzanine loan exposure (2%).

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 3421) and an increase in the proportion of
securities from issuers rated Caa1 and below (currently
approximately 20.13% of the portfolio).  These measures were taken
from the recent trustee report dated November 30, 2009.  Moody's
also performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality
combined with a decrease in the expected recovery rates.  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


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


ARCHANGEL DIAMOND: Wins Confirmation of Chapter 11 Plan
-------------------------------------------------------
Archangel Diamond Corporation (TSX VENTURE:AAD.H) announces that
on December 17, 2009, the United States Bankruptcy Court for the
District of Colorado entered an order confirming Archangel's
Amended Plan of Liquidation.

An involuntary Chapter 7 liquidation bankruptcy proceeding was
initiated against Archangel on June 26, 2009.  Archangel converted
the Chapter 7 proceeding to a Chapter 11 reorganization proceeding
on September 3, 2009, and it filed its Plan of Liquidation on the
same day. Archangel obtained debtor-in-possession financing from
Firebird Global Master Fund, Ltd.  Archangel filed the Plan on
November 4, 2009, and distributed the disclosure statement for the
Plan and balloting materials on November 5, 2009.  Votes to accept
or reject the Plan received prior to the December 3, 2009
balloting deadline were counted. One hundred percent of those
creditors voting and 100% of those equity holders voting voted to
accept the Plan.  The confirmation hearing on the Plan was held on
December 11, 2009.

The Plan transfers the assets of Archangel -- being substantially
Archangel's legal proceedings against AGD, LUKoil and certain
related parties -- to a trust of which the Corporation's creditors
as of June 26, 2009 and the Corporation's equity holders as of
September 3, 2009 are beneficiaries, and otherwise sets forth the
treatment of such creditors and equity holders.  The Order
approves the treatment of creditors and equity holders of the
Corporation and establishes the binding legal effect of the Plan.
The claims of creditors as against Archangel were extinguished and
are now reflected as interests in the Liquidating Trust.
Archangel intends to apply for a recognition order from the
Ontario Superior Court of Justice which will domesticate the Order
and its effect in Canada.  As a result, Archangel will have no
assets, nor liabilities, nor any business or undertaking.
Subsequently, Archangel intends to apply to the NEX Board of the
TSX Venture Exchange for the voluntary delisting of its common
shares and will call a special meeting of Archangel's
shareholders, anticipated to be held in the first quarter of 2010,
to approve the delisting and the voluntary filing of Articles of
Dissolution of Archangel.  Full particulars concerning the special
business to be considered at the special meeting will be contained
in Archangel's management information circular which will be
mailed in late January, 2010.

                      About Archangel Diamond

Archangel Diamond (NEX BOARD:AAD.H) is a Canadian diamond company
focused on exploration and mining in Russia.  The company is
listed on the Toronto Venture Exchange (trading symbol AAD).

Three creditors filed a petition to send Archangel Diamond
Corporation to liquidation under Chapter 7 of the U.S. Bankruptcy
Code on June 26, 2009 (Bankr. D. Colo. Case No. 09-22621).
Archangel subsequently converted its case to a Chapter 11
bankruptcy.


EVRAZ GROUP: Moody's Changes Outlook on 'B1' Rating to Stable
-------------------------------------------------------------
Moody's changed the outlook of B1 corporate family rating of Evraz
to stable.  At the same time the outlook of the B2 ratings for
Senior Unsecured Notes totaling US$2,242 million due in 2013,
2015, and 2018 were changed to stable from negative.

This rating action was prompted by the fact that the company
received a positive resolution with adequate headroom for the
financial covenants to face contingencies in a timely manner both
from the syndicate banks and the bondholders.  Moody's also notes
that the debt maturity profile was extended.  Recent placement of
the rouble bond totaling RUR20 billion and one-year extension of
US$1,006 million loan from VEB helped Evraz's to maintain
satisfactory liquidity position at least for the next 12 months.
Furthermore, the company has made a material progress in the first
nine months of 2009 with a reduction in total by US$ 2.6 billion
to US$7.7 billion from US$10.3 billion as of December 31, 2008.
The rating continues to reflect the view that Evraz will display
at the end of 2009 relatively weak credit metrics, in spite of
some improvements observed in the 3Q 2009 and that the recovery of
the financial performance will likely be slow despite the positive
measures taken by management to adjust the cost base.  The rating
is supported by Moody's expectation that the company should be
able to continue to generate free cash flow in 2009 and 2010,
which would be instrumental in reducing the absolute level of debt
going forward.  At the same time, the rating reflects that Evraz
is a strong global competitor with a cost efficient assets base
and a business profile that has gained geographical diversity,
thereby reducing the dependence on Russia, in the past few years.

The last rating action was on September 28, 2009 when Moody's
downgraded CFR of Evraz from Ba3 to B1 with a negative outlook.

Evraz Group is one of the largest vertically integrated steel
companies in Russia (by volume and assets) with assets also in
Europe, North America and South Africa that produced 17.6 million
tones of steel products, reported revenue of US$20.39 billion
(58.6% increase Y-o-Y) and EBITDA of US$ 6.35 billion (45.9%
increase Y-o-Y) in 2008.  In the 1H 2009 the company reported
US$4.6 billion in revenue (57% decrease H-o-H) and EBITDA of
US$468 million (87% decrease H-o-H).

Evraz's principal assets are steel plants in Russia, Europe, North
America, South Africa and Ukraine, iron ore and processing
facilities, as well as coal mines, logistics and trading assets.


MOBILE TELESYSTEMS: S&P Retains 'BB' Rating on Unsecured Debts
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned a
recovery rating of '3' on the Russian ruble (RUR) unsecured bonds
(RUR10 billion due 2013, RUR10 billion due 2015, RUR10 billion due
2018, RUR15 billion due 2014, and RUR15 billion due 2016) issued
by Russian mobile operator Mobile TeleSystems (OJSC) (BB/Stable/
--).  The recovery rating indicates S&P's expectation of
meaningful (50%-70%) recovery in the event of a payment default.
The issue-level ratings on these unsecured debt instruments
remains 'BB', in line with the 'BB' corporate credit rating on
MTS.

The issue rating on the US$400 million bonds due 2010 and
US$400 million bonds due 2012 issued by Mobile Telesystems Finance
S.A., guaranteed by MTS is 'BB', in line with the corporate credit
rating on MTS.  The recovery rating on these notes is '3',
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.

                        Recovery Analysis

S&P has valued the company on a going-concern basis.  Given MTS'
leading market positions in Russia and the Commonwealth of
Independent States, established network assets, and valuable
customer base, S&P believes that a default would most likely
result from excessive leverage as a result of operating
underperformance.  At the hypothetical point of default S&P value
the company at about US$6.2 billion.

The issue-level and recovery ratings on the unsecured debt take
into account the nature of MTS' assets, the probability of a
restructuring or going-concern sale, and the likelihood of
insolvency proceedings being adversely influenced by MTS' being
domiciled in Russia.

Lack of security and weak documentary protection highlight the
risk that the capital structure might evolve along the path to
default, with potential for additional debt to be raised with
parity or priority to the rated unsecured debt instruments.  Any
change in the group's financial policy and capital structure could
significantly affect S&P's hypothetical default scenario and
waterfall analysis, and thereby impair recovery prospects for the
bonds.


SISTEMA JSFC: S&P Retains 'BB' Rating on Unsec. Debt Instruments
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned a
recovery rating of '4' to the Russian ruble (RUR) unsecured bonds
(RUR20 billion due 2014, RUR6 billion due 2013 and RUR19 billion
due 2016) issued by Russian holding company Sistema (JSFC)
(BB/Negative/--).  The '4' recovery rating indicates S&P's
expectation of average (30%-50%) recovery in the event of a
payment default.  The issue-level ratings on these unsecured debt
instruments remains 'BB', in line with the 'BB' corporate credit
rating on Sistema.

The issue rating on the US$350 million bonds due 2011 issued by
Sistema Capital S.A., and guaranteed by Sistema is 'BB', in line
with the corporate credit rating on the parent company, Sistema.
The recovery rating on these notes is '4', indicating S&P's
expectation of average (30%-50%) recovery in the event of a
payment default.

                        Recovery Analysis

S&P has valued the company based on the stressed value of its
asset portfolio.  Given Sistema's valuable and diversified assets,
with exposure to various companies with leading market positions;
established network assets; and valuable customer base in Russia's
telecoms and oil businesses, S&P believes that a default would
most likely be triggered by a significant reduction of dividends
upstream, as a result of operating underperformance -- mainly in
the telecoms business.  S&P also sees a risk that possible debt-
funded acquisitions at the Sistema level could exacerbate these
risks.  As part of its analysis, S&P has assumed that the secured
debt at the holding company level will be refinanced with
unsecured debt instruments at operating companies.

The issue-level and recovery ratings on the unsecured debt take
into account the nature of Sistema' assets and the likelihood of
insolvency proceedings being adversely influenced by Sistema's
being domiciled in Russia.

The recovery ratings on the notes are based on the current capital
structure (unsecured debt instruments raised at the holding
company level), which, given the weak documentary protections (in
particular against raising new debt), could change materially on
the path to default.  Any change in the group's financial policy
and capital structure -- such as additional debt raised with
parity or priority to these unsecured debt instruments -- could
significantly affect S&P's hypothetical default scenario and
waterfall analysis, and thereby impair recovery prospects for the
bonds.


URALSIB-YUG BANK: S&P Affirms 'B/B' Counterparty Credit Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B/B' long and short-term counterparty credit ratings and its
'ruA-' Russia national scale rating on Russia-based URALSIB-YUG
Bank OJSC.  The outlook was revised to positive from developing.

"This follows the bank's Extraordinary General Meeting held on
Dec. 11, 2009, where shareholders approved the final decision to
merge with Bank URALSIB (OJSC) (B+/Negative/B)," said Standard &
Poor's credit analyst Maria Malyukova.  "S&P understand that the
transaction should be completed during the third quarter of 2010."

S&P subsequently withdrew its ratings on URALSIB-YUG Bank at the
bank's request.  At the time of withdrawal the bank had no rated
debt outstanding.


VIMPELCOM-INVEST LLC: S&P Retains 'BB+' Rating on Unsecured Debts
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned a
recovery rating of '3' to the Russian ruble (RUR) unsecured bonds
(RUR10 billion and RUR5 billion bonds due 2013 and RUR10 billion
bonds due 2014) issued by VimpelCom-Invest (LLC) and fully
guaranteed by Russia-based mobile operator Vimpel-Communications
(JSC) (BB+/Negative/--).  The recovery rating indicates S&P's
expectation of meaningful (50%-70%) recovery in the event of a
payment default.  The issue-level ratings on these unsecured debt
instruments remains 'BB+', in line with the 'BB+' corporate credit
rating on VimpelCom.

The issue ratings on the foreign currency unsecured debt issues of
VimpelCom are 'BB+', the same as the corporate credit rating.  The
recovery rating on these notes is '3', indicating S&P's
expectation of meaningful (50%-70%) recovery in the event of a
payment default.

                        Recovery Analysis

S&P has valued the company on a going-concern basis.  Given
VimpelCom's leading market positions in Russia and the
Commonwealth of Independent States, established network assets,
and valuable customer base, S&P believes that a default would most
likely result from excessive leverage as a result of operating
underperformance.  At the hypothetical point of default S&P value
the company at about US$4.7 billion.

The issue-level and recovery ratings on the unsecured debt take
into account the nature of VimpelCom's assets, the probability of
a restructuring or going-concern sale, and the likelihood of
insolvency proceedings being adversely influenced by VimpelCom's
being domiciled in Russia.


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


PROMOTORA DE INFORMACIONES: In Advanced Debt Refinancing Talks
--------------------------------------------------------------
Paul Tobin at Bloomberg News reports that Promotora de
Informaciones SA said talks to refinance about EUR5 billion
(US$7.2 billion) of debt are "very advanced" after it completed a
plan to sell assets.

According to Bloomberg, Prisa Chief Executive Officer Juan Luis
Cebrian said Monday in an interview at Prisa's headquarters the
company will finish talks with lenders before its EUR1.95-billion
bridge loan matures in March 2010.

Bloomberg recalls in the past year, Mr. Cebrian has closed two
unprofitable businesses and sold stakes in the group's Portuguese
unit, the book publishing division, pay-TV business and free-to-
air channel Cuatro to raise cash and reduce borrowings.

Mr. Cebrian, as cited by Bloomberg, said to further strengthen its
financial position, Prisa is in talks with potential investors and
aims to reach an agreement in a "reasonably short period of time."

"We are considering doing a private placement or maybe selling a
bond," Bloomberg quoted Mr. Cebrian as saying.  "We are in
advanced talks with potential investors.  We are talking with more
than one and depending on what agreement we reach, the structure
of the transaction can change."

Promotora de Informaciones S.A. (PRISA) -- http://www.prisa.com/
-- is a Spain-based holding company, engaged in various media
activities.  The Company has six business areas: publishing,
education and training (Grupo Santillana publishes textbooks and
books of general interest); press (El Pais Internacional is
engaged in the distribution of news material and services to other
newspapers and publications worldwide); radio (Union Radio is a
group broadcasting worldwide); audiovisual (PRISA offers services
and products, including Pay TV, thorough the satellite platform
DIGITAL+, and free-to-view through the channel Cuatro); online
(Prisacom is committed to the development of multimedia content
with broadcasting for Internet-based TV) as well as commercial &
marketing (Sogecable Media SA manages all the advertising on the
Company and its group's media).  The Company is present in 22
countries, such as Portugal, Brazil or the United States.


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


FORD MOTOR: Clears Major Hurdles in Sale of Volvo Unit
------------------------------------------------------
People familiar with the matter told The Wall Street Journal's
Matthew Dolan that Ford Motor Co. is expected to announce this
week that the major hurdles have been cleared in its effort to
sell its Volvo unit, enabling the auto maker to complete the sale
to a Chinese company by early 2010,.

The announcement could come as soon as Wednesday in the form of a
letter sent by Volvo chief executive Stephen Odell to employees of
the Swedish brand wholly owned by Ford, one person familiar with
the matter told the Journal.

The source, according to Mr. Dolan, said Ford is expected to
confirm some of the progress earlier announced by Zhejiang Geely
Holding Group, one of China's biggest auto makers, which had been
earlier identified as the preferred bidder for Volvo.  The Journal
relates Geely said in late November that it had reached an
agreement with Ford on intellectual-property rights involving
Volvo, addressing what had been a key stumbling block for a
possible acquisition.  Still, the timing of any final deal at that
time was unclear, according to Mr. Dolan.

Mr. Dolan relates Volvo officials declined to comment on the
matter Tuesday.  Other sources, according to Mr. Dolan, said that
several issues remained unresolved, including how to protect
Ford's intellectual property.

One source told the Journal the purpose of the upcoming
announcement would be two-fold:

     -- To give Volvo's an update on the talks 20,000 employees;
        and

     -- To reassure the Chinese government that the deal remained
        on track.

Geely has reached agreements for loans for the Volvo bid from Bank
of China Ltd., China Construction Bank Corp. and Export-Import
Bank of China, the Journal reports.

The Journal also says a Ford announcement would signal that the
chances for a rival bid from a consortium led by two former Ford
executives had dimmed.  The Journal notes the Crown consortium had
been led by former Ford director Michael Dingman and former Ford
and Chrysler LLC executive Shamel Rushwin and included
participation by Swedish investors.

One source told the Journal, Geely 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.  That source said
those investors include a government-owned fund based in Tianjin,
China.


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.

At September 30, 2009, the Company had US$203.106 billion in total
assets against US$210.376 billion in total liabilities.

On March 4, 2009, Ford deferred future interest payments on its
6.50% Junior Subordinated Convertible Debentures due January 15,
2032, beginning with the April 15, 2009 quarterly interest
payment.

                           *     *     *

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.

On Nov. 3, 2009, S&P raised the corporate credit ratings on Ford
Motor Co. and Ford Motor Credit Co. LLC to 'B-' from 'CCC+'.

Ford Motor Co. carries a long-term issuer default rating of 'CCC',
with a positive outlook, from Fitch Ratings.


SAAB AUTOMOBILE: Sale Cannot Be Concluded
-----------------------------------------
General Motors disclosed that the intended sale of Saab Automobile
AB would not be concluded.  After the withdrawal of Koenigsegg
Group AB last month, GM had been in discussions with Spyker Cars
about its interest in acquiring Saab.  During the due diligence,
certain issues arose that both parties believe could not be
resolved.  As a result, GM will start an orderly wind-down of Saab
operations.

"Despite the best efforts of all involved, it has become very
clear that the due diligence required to complete this complex
transaction could not be executed in a reasonable time.  In order
to maintain operations, Saab needed a quick resolution," said GM
Europe President Nick Reilly.  "We regret that we were not able to
complete this transaction with Spyker Cars. We will work closely
with the Saab organization to wind down the business in an orderly
and responsible manner.  This is not a bankruptcy or forced
liquidation process.  Consequently, we expect Saab to satisfy
debts including supplier payments, and to wind down production and
the distribution channel in an orderly manner while looking after
our customers."

Saab will continue to honor warranties, while providing service
and spare parts to current Saab owners around the world.

As part of its efforts to become a leaner organization, GM began
seeking a buyer for Saab's operations in January.  Saab Automobile
AB announced that it had closed on the sale of certain Saab 9-3,
current 9-5 and powertrain technology and tooling to Beijing
Automotive Industry Holdings Co. Ltd. (BAIC).  GM expects today's
announcement to have no impact on the earlier sale.

As the company continues to reinvent itself, GM has been faced
with some very difficult but necessary business decisions.  The
focus will remain on the four core brands -- Buick, Cadillac,
Chevrolet and GMC -- and several regional brands, including Opel /
Vauxhall in Europe.  This will enable the company to devote more
engineering and marketing resources to each brand and model.

General Motors Company, one of the world's largest automakers,
traces its roots back to 1908.   With its global headquarters in
Detroit, GM employs 209,000 people in every major region of the
world and does business in some 140 countries.  GM and its
strategic partners produce cars and trucks in 34 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall, Wuling and Jiefang.

                            About SAAB

The Troubled Company Reporter Europe, citing Bloomberg News,
reported on Feb. 23, 2009, Saab filed for protection from
creditors after parent GM said it will cut ties with the Swedish
carmaker following two decades of losses.  The Trollhaettan,
Sweden-based company filed for reorganization with a Swedish
district court to separate itself from GM and bring resources back
to Sweden.

On June 25, 2009, Troubled Company Reporter, citing The Wall
Street Journal, reported creditors of Saab approved the
automakers' proposal for settling its debts by paying a quarter of
what it originally owed.  Saab proposed to settle its debts by
paying 25% of about US$1.34 billion it owed to more than 600
creditors, including auto suppliers and the Swedish government.
The vast majority of the debt, almost SEK10 billion, was owed to
GM.

Saab Automobile AB -- http://www.saab.com/-- is a wholly owned
subsidiary of General Motors.  With an annual production of up to
126,000 cars, Saab's current models include the 9-3 (available as
a convertible or sport sedan), the luxury 9-5 sedan (also
available in a sport wagon), and the seven-passenger 9-7X SUV.


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


SES SOLAR: Reports US$120,800 Net Loss in Q3 2009
-------------------------------------------------
SES Solar Inc. reported a net loss of US$120,799 for the three
months ended September 30, 2009, compared with a net loss of
US$856,403 for the same period of 2008.

The Company recognizes revenue on the completed-contract method,
and therefore when projects are completed.  During the three
months ended September 30, 2009, the Company generated total
revenue of US$38,046 compared to US$1,569 for the three months
ended September 30, 2008.

The decrease in net loss during the three months ended
September 30, 2009, was due to US$518,032 of favorable foreign
exchange rate conditions between the Swiss franc and the U.S.
dollar and a reduction in interest expense and general and
administrative expenses during the three month period ended
September 30, 2009.

                       Nine Months Results

The Company reported a net loss of US$763,563 for the nine months
ended September 30, 2009, compared with a net loss of US$355,790
for the same period last year.

During the nine months ended September 30, 2009, the Company
completed several projects and generated total revenue of
US$1.3 million compared to US$34,161 for the nine months ended
September 30, 2008.

The increase in net loss during the nine months ended
September 30, 2009, compared to 2008 is due largely to the fact
that the Company generated income from discontinued operations for
the nine months ended September 30, 2008, of US$1.3 million, which
included a gain of US$1.2 million from the sale of the Solar
Plant, as compared to income of US$0 for the nine months ended
September 30, 2009, from this discontinued activity.

                          Balance Sheet

As of September 30, 2009, the Company's consolidated balance
sheets showed US$19.0 million in total assets, US$16.6 million in
total liabilities, and US$2.4 million in total stockholders'
equity.

The Company's consolidated balance sheets at September 30, 2009,
also showed strained liquidity with US$1.2 million in total
current assets available to pay US$15.5 million in total current
liabilities.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?4c03

                       Going Concern Doubt

The Company has experienced losses from operations and anticipates
incurring losses in the near future.  The Company incurred a net
loss of US$763,563 and a negative cash flow from operations of
US$169,269, and had a working capital deficiency of US$14.3
million as of September 30, 2009.  "These matters raise
substantial doubt about its ability to continue as a going
concern."

The Company has financed the construction of its manufacturing
facility with construction loans.  The Company intends to convert
these construction loans into a long term mortgage immediately
after completion of the facility.  Since the manufacturing
facility has not been completed as of September 30, 2009, no
construction loans have been converted into mortgages.

The Company's ability to continue its operations and market and
sell its products and services will depend on its ability to
convert the construction loans into mortgages and to obtain
additional financing.  If the Company is unable to obtain such
financing, the Company may not be able to continue its business.
Any additional equity financing may be dilutive to shareholders,
and debt financing, if available, will increase expenses and may
involve restrictive covenants.  The Company will be required to
raise additional capital on terms that are uncertain, especially
in light of current capital market conditions.  Under these
circumstances, if the Company is unable to obtain additional
capital or is required to raise it on undesirable terms, its
financial condition could be adversely impacted.

The Company's current business plan includes the development of a
new assembly line based on its proprietary technology and the
construction of a manufacturing facility in the suburbs of Geneva,
Switzerland to produce solar modules and solar tiles at a lower
cost.  These activities require that the Company design and
manufacture prototype panels, have them approved in accordance
with European and other standards, manufacture them in series and
sell them in the primary markets for solar photovoltaic cells.
Costs incurred in manufacturing prototype panels have been
expensed as research and development costs.

The Company does not believe that it can achieve profitability
until development, implementation, and commercialization of new
products manufactured through the new assembling process are
operational.

                         About SES Solar

Based in Geneva, Switzerland, SES SOLAR INC. (OTC BB: SESI)
through its subsidiaries, engages in designing, engineering,
producing, and installing solar panels or modules, and solar tiles
for generating electricity.  It produces and installs photovoltaic
solar products for commercial, industrial, and residential use.
The company's products are used by electric companies, local
governmental agencies, and private house owners.  SES Solar also
offers engineering services for photovoltaic projects.


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


CHESTER ASSET: S&P Keeps Watch Developing on 'BB'-Rated Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services kept on CreditWatch negative
its credit ratings on the class A notes issued by various Chester
Asset Receivables Dealings PLC transactions.  At the same time,
S&P kept on CreditWatch developing its ratings on the class B and
C notes issued in these transactions.

The ongoing CreditWatch placements reflect the worsening
performance of the underlying collateral in the affected Cards
Trust I and II transactions originated by MBNA Bank Europe Ltd.

The ratings will remain on CreditWatch while Bank of America, MBNA
Bank Europe's parent, considers its options.

Note that S&P listed the ratings on the class B and C notes of
Chester Asset Receivables Dealings 2004-1 PLC in a July 16 media
release placing these ratings on CreditWatch developing.

However, due to a database entry error, the CreditWatch developing
placements on the class B and C notes did not appear.
Additionally, in the July 16 media release S&P listed its ratings
on all notes in Chester Asset Receivables Dealings 2002-A PLC as
being on CreditWatch.  However, S&P had previously withdrawn these
ratings on May 15, 2009, as the issuer had redeemed the notes.

                            Ratings List

             Ratings Remaining on Creditwatch Negative

          Chester Asset Receivables Dealings No. 11 PLC
EUR60 Million and EUR730 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    A             AAA/Watch Neg

          Chester Asset Receivables Dealings No. 12 PLC
         EUR300 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    A             AAA/Watch Neg

          Chester Asset Receivables Dealings 2001-B PLC
         EUR250 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    A             AAA/Watch Neg

          Chester Asset Receivables Dealings 2003-B PLC
         EUR250 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    A             AAA/Watch Neg

          Chester Asset Receivables Dealings 2003-C PLC
         EUR706 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    A             AAA/Watch Neg

          Chester Asset Receivables Dealings 2004-1 PLC
         EUR500 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    A             AAA/Watch Neg

          Chester Asset Receivables Dealings Issuer Ltd.
  EUR300 Million Asset-Backed Floating-Rate Notes Series 2004-A1

                    Class         Rating
                    -----         ------
                    A1            AAA/Watch Neg

          Chester Asset Receivables Dealings Issuer Ltd.
   EUR250 Million Asset-Backed Floating-Rate Notes Series 2006-A1

                    Class         Rating
                    -----         ------
                    A1            AAA/Watch Neg

          Chester Asset Receivables Dealings Issuer Ltd.
EUR350 Million Asset-Backed Floating-Rate Notes Series 2008-A1

                    Class         Rating
                    -----         ------
                    A1            AAA/Watch Neg

          Chester Asset Receivables Dealings Issuer Ltd.
   EUR300 Million Asset-Backed Floating-Rate Notes Series 2008-A2

                    Class         Rating
                    -----         ------
                    A2            AAA/Watch Neg

           Ratings Remaining on Creditwatch Developing

          Chester Asset Receivables Dealings No. 11 PLC
EUR60 Million and EUR730 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    B             BBB+/Watch Dev
                    C             BB+/Watch Dev

          Chester Asset Receivables Dealings No. 12 PLC
         EUR300 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    B             BBB+/Watch Dev
                    C             BB+/Watch Dev

          Chester Asset Receivables Dealings 2001-B PLC
         EUR250 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    B             BBB/Watch Dev
                    C             BB/Watch Dev

          Chester Asset Receivables Dealings 2002-A PLC
        $775.50 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    B             BBB/Watch Dev
                    C             BB/Watch Dev

          Chester Asset Receivables Dealings 2003-B PLC
         EUR250 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    B             BBB/Watch Dev
                    C             BB/Watch Dev

          Chester Asset Receivables Dealings 2003-C PLC
         EUR706 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    B             BBB/Watch Dev
                    C             BB/Watch Dev

          Chester Asset Receivables Dealings 2004-1 PLC
         EUR500 Million Asset-Backed Floating-Rate Notes

                    Class         Rating
                    -----         ------
                    B             BBB/Watch Dev
                    C             BB/Watch Dev

          Chester Asset Receivables Dealings Issuer Ltd.
  EUR175 Million Asset-Backed Floating-Rate Notes Series 2004-C1

                    Class         Rating
                    -----         ------
                    C1             BB/Watch Dev

          Chester Asset Receivables Dealings Issuer Ltd.
   EUR70 Million Asset-Backed Floating-Rate Notes Series 2006-C1

                    Class         Rating
                    -----         ------
                    C             BB/Watch Dev

          Chester Asset Receivables Dealings Issuer Ltd.
  EUR125 Million Asset-Backed Floating-Rate Notes Series 2004-B1

                    Class         Rating
                    -----         ------
                    B1             BBB/Watch Dev

          Chester Asset Receivables Dealings Issuer Ltd.
  EUR50 Million Asset-Backed Floating-Rate Notes Series 2006-B1

                    Class         Rating
                    -----         ------
                    B1             BBB/Watch Dev


GALA CORAL: Board Backs Mezzanine Creditors' Debt Plan
------------------------------------------------------
Anousha Sakoui at The Financial Times reports that Gala Coral's
board has given its backing a plan from its mezzanine creditors to
restructure the Company's GBP2.5 billion of debts.

According to the FT, a majority of the group's shareholders and
more than 75% of its mezzanine creditors have already agreed to
back the plan.  Under the plan, mezzanine creditors will write off
their debt claims in exchange for splitting control of the company
with existing shareholders, including private equity firms Cinven
and Candover, the FT discloses.

Citing people close to the situation, the FT says the company
sees other third party proposals as unlikely to be able to be
implemented.

The company's senior creditors are reviewing the proposal and are
expected to give their feedback to the company this week, the FT
relates.

                              Waiver

The company, the FT says, will ask lenders on January 5 for a
waiver to allow formal negotiations to commence with lenders about
debt restructurings, because this could constitute a breach of an
intercreditor agreement.  The company is expected to ask for the
waiver to run to March 31, the FT notes.

Gala Coral Group Ltd. -- http://www.galacoral.co.uk/-- is one of
the leading gaming companies in the U.K., with operations
encompassing bingo, casinos, and sports betting.  It runs more
than 150 bingo halls throughout the country, as well as some 30
casinos.  The company is also a leading bookmarker with nearly
1,600 betting shops and online betting sites.  Gala Coral Group
was formed in 2005 when Gala Group acquired Coral Eurobet.  The
company is jointly owned by private equity firms Cinven Group,
Candover Investments, and Permira.


GLOBAL CROSSING UK: Records GBP1.569 Million Net Loss for Q3
------------------------------------------------------------
Global Crossing Limited's subsidiary, Global Crossing (UK)
Telecommunications Limited, generated GBP75 million of revenue in
the third quarter and Operating Income Before Depreciation and
Amortization of GBP20 million.  The company also reported cash
generated from operations of GBP13 million before interest.

"Despite a challenging economic environment, GCUK continues to see
healthy levels of demand for advanced IP-based networking
solutions, including managed services," said John Legere, Global
Crossing's chief executive officer.  "We are carefully aligning
our sales resources and capital investments to seize these
opportunities and further diversify our customer base."

                       Third Quarter Results

GCUK generated revenue of GBP75 million, a decrease of
GBP2 million or 3% sequentially and a decrease of GBP7 million or
9% on a year-over-year basis.  The sequential decrease in revenue
was primarily due to a decrease in non-recurring fees, including
fees for professional services, equipment sales and certain other
charges.  The year-over-year decrease in revenue was primarily due
to the conclusion of the Camelot contract in December 2008.

Gross margin was GBP30 million for the quarter, a GBP7 million
increase sequentially and flat compared with the same quarter last
year.  The sequential increase in gross margin was primarily due
to a reduction in access charges resulting from a GBP4 million
favorable regulatory ruling related to access costs paid in
periods prior to 2009 and a GBP2 million benefit from recharging
to the Rest of World segment a portion of retroactive property tax
assessments previously charged to GCUK, partially offset by a
decrease in revenue.

Sales, general and administrative expenses were GBP10 million for
the quarter, essentially flat on a sequential and year-over-year
basis.

GCUK's OIBDA for the third quarter was GBP20 million, compared
with GBP12 million in the second quarter of 2009 and GBP20 million
in the third quarter of 2008.  The sequential increase in OIBDA
was primarily due to the favorable regulatory ruling and the
retroactive property tax assessment recharge, partially offset by
lower revenue in the quarter.

GCUK recorded net loss of GBP1.569 million for the third quarter
of 2009, compared with net income of GBP9.990 million in the
second quarter of 2009 and a net loss of GBP6.642 million in the
third quarter of 2008.  Beyond the variances, the sequential
variation in net income/loss was primarily due to unrealized
foreign exchange losses on GCUK's U.S. dollar denominated Senior
Secured Notes in the third quarter of 2009, compared with gains in
the second quarter of 2009.  The year-over-year reduction in net
loss was primarily due to lower unrealized foreign exchange losses
on the U.S. dollar denominated Senior Secured Notes.

                        Cash and Liquidity

As of September 30, 2009, GCUK had GBP304.230 million in total
assets against US$516.762 million in total liabilities, resulting
in total deficit of US$212.532 million.  As of September 30, 2009,
GCUK had cash and cash equivalents of GBP26 million compared with
GBP17 million at June 30, 2009, and GBP34 million at September 30,
2008.

Net cash generated from operating activities during the third
quarter totaled GBP13 million after operating working capital use
of GBP4 million.  GCUK's cash and cash equivalents increased by
GBP9 million in the third quarter, after purchases of property,
plant and equipment of GBP2 million and principal payments on
finance leases and other debt obligations of GBP3 million.

A full-text copy of GCUK's earnings release is available at no
charge at http://ResearchArchives.com/t/s?4c17

                    About Global Crossing (UK)

Based in London, U.K., Global Crossing UK Telecommunications Ltd.
provides a full range of managed telecommunications services in a
secure environment ideally suited for IP-based business
applications. The company provides managed voice, data, Internet
and e-commerce solutions to a strong and established commercial
customer base, including more than 100 UK government departments,
as well as systems integrators, rail sector customers and major
corporate clients.  In addition, Global Crossing UK provides
carrier services to national and international communications
service providers.

                       About Global Crossing

Based in Hamilton, Bermuda, Global Crossing Limited (NASDAQ: GLBC)
and its subsidiaries are a global communications service provider,
serving many of the world's largest corporations, government
entities and many other telecommunications carriers, providing a
full range of Internet Protocol and managed data and voice
products and services.  The Company's network delivers services to
nearly 700 cities in more than 60 countries and six continents
around the world.  The Company operates as an integrated global
services provider with operations in North America, Europe, Latin
America and a portion of the Asia/Pacific region, providing
services that support a migration path to a fully converged IP
environment.

Global Crossing reported a net loss of US$73 million for the three
months ended September 30, 2009, from a net loss of US$72 million
for the year ago period.  Global Crossing reported a net loss of
US$104 million for the nine months ended September 30, 2009, from
a net loss of US$232 million for the year ago period.

At September 30, 2009, Global Crossing had US$2,463,000,000 in
total assets against US$2,796,000,000 in total liabilities,
resulting in US$333,000,000 in stockholders' deficit.


GRACECHURCH CARD: S&P Cuts Ratings on Two Classes of Notes to 'B'
-----------------------------------------------------------------
Standard & Poor's Ratings Services removed from CreditWatch
negative and lowered its credit ratings on Gracechurch Card Notes
2006-A PLC's class A1 and A2 notes.  S&P affirmed all the other
notes issued from the Gracechurch Receivables Trust.

The rating actions follow S&P's credit and cash flow review of the
transactions and the underlying collateral for the Gracechurch
Trust.

S&P has not seen a significant enough improvement in the pool
performance since S&P placed the notes on CreditWatch, for us to
be able to affirm the class A1 and A2 notes at their current
rating of 'BB'.

S&P has seen a further reduction in yield since S&P placed the
notes on CreditWatch, and consequently S&P has reduced its base
case assumption for yield by 50bps to 14.0%.  Yield was 16.05% in
October 2009.  For S&P's analysis, when calculating yield S&P does
not give benefit to interchange and recoveries.

The payment rate has started to stabilize and was at 16.27% in
October 2009 according to the investor report.  S&P has kept its
base case for payment rate at 16%.

Charge-offs have improved, however S&P expects charge-offs to
remain high as unemployment increases.  S&P has therefore kept its
base case at 7.5%.

The deterioration in performance has led to classes A1 and A2 not
being able to withstand S&P's stresses at the 'BB' rating level
and this has led to the downgrades.  At the same time, S&P
believes that the ratings on the other classes of notes issued
from the Gracechurch Receivables Trust are still commensurate with
the risks embedded in the pool.

S&P will continue to monitor the transactions as any further
deterioration in performance could lead to the higher rated notes
coming under pressure.

The 'BB' rated notes issued by Gracechurch Card Notes 2006-A were
issued to provide extra support to the existing series of notes
issued by the Gracechurch Receivables Trust.  They provide support
to Gracechurch Card Funding No. 10 PLC, but do not provide support
to the more recent Gracechurch Card Program Funding series 2008-1
and 2008-2.

Gracechurch Card Funding is a master trust backed by credit card
receivables originated by Barclaycard.

                           Ratings List

                Gracechurch Card Notes 2006-A PLC
                         EUR60.0 Million
       and GBP71.5 Million Asset-Backed Floating-Rate Notes
                         (Series 2006-1)

       Ratings Lowered and Removed From Creditwatch Negative

                               Rating
                               ------
              Class       To             From
              -----       --             ----
              A1          B              BB/Watch Neg
              A2          B              BB/Watch Neg

                         Ratings Affirmed

              Gracechurch Card Funding (No. 10) PLC
        EUR790.5 Million And GBP733 Million Floating-Rate
                  Asset-Backed Notes Series 05-3

                                  Rating
                                  ------
                  Class      To             From
                  -----      --             ----
                  A1         AAA            AAA
                  A2         AAA            AAA
                  B1         A              A
                  B2         A              A
                  C1         BBB            BBB
                  C2         BBB            BBB

       Gracechurch Card Programme Funding PLC Series 2008-1
          GBP2 Billion Asset-Backed Floating-Rate Notes

                                  Rating
                                  ------
                  Class      To             From
                  -----      --             ----
                  A          AAA            AAA

       Gracechurch Card Programme Funding PLC Series 2008-2
           GBP2 Billion Asset-Backed Floating-Rate Notes

                                  Rating
                                  ------
                  Class      To             From
                  -----      --             ----
                  A          AAA            AAA


GRADUS GROUP: Completes GBP25 Mln Debt-for-Equity Swap
------------------------------------------------------
Simon Binns at Crain's Manchester Business reports that Gradus
Group Holdings has just completed a GBP25 million debt-for-equity
swap which gives Lloyds Banking Group a majority stake in the
business.

According to the report, the refinancing, signed off on December
10, saw GBP16 million of loan debt and GBP2 million of loan notes
and accrued interest converted into preference and deferred
ordinary shares; while GBP1.9 million of the senior facility was
transferred to a mezzanine loan.  Also converted into shares was
GBP5.5 million of accrued redemption premiums on loans, the report
says.

Neither party would reveal details but it is understood that the
bank now holds a 75% stake, while the remainder is shared among
management, the report notes.

Based in Macclesfield, Gradus Group Holdings makes and distributes
floor coverings and trim, barrier matting, wall protection, soft
furnishings and lighting design.


NEWGATE FUNDING: S&P Puts 'BB'-Rated Notes on CreditWatch Positive
------------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch positive
its credit ratings on Newgate Funding PLC's class Ba and Bb notes
series 2006-1.  At the same time, S&P placed the class D, E, and Q
notes on CreditWatch negative.

According to the December 2009 investor report the pool factor is
30.9% and as a result the credit enhancement for the class Ba and
Bb notes has increased to 19.4% from 7.4% at closing.  This
increase, together with improvements in certain performance
metrics, has led to the CreditWatch positive placements.

Two key performance metrics in particular have contributed to the
CreditWatch positive placements.  The stock of unsold
repossessions has dropped significantly to 1.85% from 6.66% in
March 2009.  Prepayments have also remained relatively robust with
a quarterly rate of 17.8%.

The main reason for the CreditWatch negative placements on the
junior notes is the high level of arrears that may lead to further
defaults.  The percentage of loans in arrears for more than 120
days remains high at 26.4%; of these loans, 42.5% made no payment
in the quarter.  In its analysis S&P assume that a high percentage
of these loans will default.

Additionally, the reserve fund is 52.0% of the required amount
after large reserve fund draws on the March and June interest
payment dates.  These draws were due to increasing losses from
sold repossessions as well as unhedged basis risk.  The basis risk
arises because the assets are linked to the Bank of England's base
rate and the liabilities linked to three-month LIBOR.  There has
been a prolonged dislocation between these two rates in the past
two years but this has diminished somewhat in recent quarters.  In
S&P's cash flow analysis S&P stress this mismatch by analyzing the
historical difference between the two indices.

For these reasons S&P has placed the junior notes on CreditWatch
negative.

S&P expects to resolve both the CreditWatch negative and positive
placements after the March 2010 interest payment date.  S&P will
pay particular attention to levels of prepayments, severe
delinquencies, and repossessions.

Newgate Funding series 2006-1 is a U.K. nonconforming residential
mortgage-backed securities transaction that closed in March 2006.

Mortgages 1 Ltd. originated the loans, which are secured over
freehold and leasehold properties in the U.K.

                           Ratings List

                        Newgate Funding PLC
                          EUR117.5 Million
     and GBP503.95 Million Mortgage-Backed Floating-Rate Notes

              Ratings Placed on CreditWatch Positive

                                   Rating
                                   ------
                Class       To                 From
                -----       --                 ----
                Ba          AA/Watch Pos       AA
                Bb          AA/Watch Pos       AA

              Ratings Placed on CreditWatch Negative

                                   Rating
                                   ------
                Class       To                 From
                -----       --                 ----
                D           BBB/Watch Neg      BBB
                E           BB/Watch Neg       BB
                Q           BB/Watch Neg       BB


SCOTTISH WIDOWS: Moody's Upgrades Junior Debt Rating From 'Ba1'
---------------------------------------------------------------
Moody's upgraded to Baa1 from Ba1 the junior subordinated debt
ratings of Scottish Widows plc (GBP560 million, 5.125% with
optional coupon deferral) and Clerical Medical Finance plc (CMF;
EUR750 million 4.25% with optional coupon deferral).  Moody's also
upgraded to Baa1 from Baa2 the junior subordinated debt of CMF
(GBP200 million 7 3/8% with coupon deferral restricted to
mandatory triggers) and confirmed the Baa1 senior subordinated
debt rating of CMF (EUR400 million 6.45% with coupon deferral
restricted to mandatory triggers).

These actions conclude the review initiated on November 3, 2009,
and all these subordinated debt ratings now carry a negative
outlook.  The negative outlook reflects the negative outlook on
the BFSR of Lloyds TSB Bank plc (Lloyds TSB) and Bank of Scotland
plc.  A downgrade of the BFSR may have a potential negative impact
on the ratings of these securities.

The rating action reflects the European Commission's intention not
to force coupon deferral on these securities as a part of its
approval of Lloyds' State-aid package and Moody's expectations
that the solvency positions of both SW and Clerical Medical
Investment Group will continue to be robust going forward; Moody's
believe that given the separate regulatory oversight, the capital
of the insurance operations remain partially protected and
separated by the banking operations.  Nevertheless, given the
current restructuring situation of the bank, the ratings on the
subordinated debt of the insurance operations are partially
constrained by the ratings on the subordinated debt of the
correspondent banking companies within Lloyds Banking Group.  As a
result the current ratings on the subordinated debts of both SW
and CMF are notched wider than Moody's standard notching for
insurers.

Moody's said that although the insurance subordinated debt
securities remain obligations of and guaranteed by the respective
insurance operating companies and Moody's expect robust level of
capital to be held within the insurance business, it believes that
Lloyd's Banking Group's capital base is increasingly managed
centrally.

Under IFRS SW had total assets amounting to GBP58.9 billion at
year-end 2008 and reported a net profit of GBP157 million in 2008.
Under IFRS CMIG had total assets amounting to GBP29.5 billion at
year-end 2008 and reported a net profit of GBP262 million in 2008.

Ratings Affected

These ratings were upgraded and their outlook revised to negative:

Scottish Widows:

* Junior Subordinated Debt to Baa1 from Ba1 (review direction
  uncertain) - GBP560 million 5.125%.

Clerical Medical Finance:

* Junior Subordinated Debt (guaranteed by Clerical Investment
  Group Ltd) to Baa1 from Ba1 (review direction uncertain) -
  EUR750 million 4.25%.


* Junior Subordinated Debt (guaranteed by Clerical Investment
  Group Ltd) to Baa1 from Baa2 (review for downgrade) -
  GBP200 million 7 3/8%.

These ratings were confirmed and their outlook revised to
negative:

Clerical Medical Finance:

* Senior Subordinated Debt (guaranteed by Clerical Investment
  Group Ltd) Baa1 confirmed - EUR400 million 6.45% Due 2023

On November 3, 2009 Moody's changed the review direction on the
junior subordinated debts with full optional deferral features
issued by Scottish Widows plc (GBP560 million 5.125%) and Clerical
Medical Finance (EUR750 million 4.25%) -- both Ba1 -- to uncertain
from possible downgrade.  The action reflected the EC's intention
not to force coupon deferral on these securities as a part of its
approval of Lloyds' State-aid package; nevertheless, Moody's
expected that, given the restructuring situation of the bank,
there was still a moderate risk of coupon deferral on these
securities.

On the same date Moody's also placed on review for possible
downgrade the Baa2 junior subordinated debt (GBP200 million
7 3/8%) rating of Clerical Medical Finance plc and the Baa1 senior
subordinated debt (EUR400 million 6.45%) rating of Clerical
Medical Finance plc to reflect the deterioration in banking
stand-alone credit profile, as reflected in the downgrade of the
BFSR of Lloyds TSB and Bank of Scotland; the ratings also
reflected the limited ability for CMF to defer payments on these
two issues as coupon deferral is restricted to mandatory triggers
upon specified remote solvency level.


                            *********

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-
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