TCREUR_Public/091228.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Monday, December 28, 2009, Vol. 10, No. 254

                            Headlines



F I N L A N D

TIMBERHEART OY: Honkarakenne Liquidates Holdings


F R A N C E

BELVEDERE SA: Bruce Willis to Get 3.3% Stake in Marketing Deal
CMA CGM: Bondholders Approve Changes to Terms of Notes


G E R M A N Y

ESCADA AG: Mittal Family Also Buying U.S. Assets
WESTLB AG: European Commission to Probe Into Bad Bank Plan


G R E E C E

EMPORIKI BANK: Moody's Cuts Bank Financial Strength Rating to D


H U N G A R Y

INVITEL HOLDINGS: S&P Raises Corporate Credit Rating to 'B'

* HUNGARY: Retail Sector Liquidation Procedures Down 14% in 2H09


I C E L A N D

KAUPTHING SINGER: Depositors May Not Recover Money Until 2017


I R E L A N D

ALLIED IRISH: Explores Ways to Raise Capital, May Need State Aid
ANGLO IRISH: Liquidation Will Lead to Massive Losses for State
BUDGET TRAVEL: Gets Expressions of Interest From Potential Buyers
ELVA FUNDING: S&P Raises Rating on 2007-14 Notes to 'BB+'
ULSTER BANK: Moody's Cuts Bank Financial Strength Rating to 'D-'


I T A L Y

DA VINCI: Defaulted Alitalia Bonds Won't Affect Moody's Ratings
MARIELLA BURANI: Holding Companies Won't Be Liquidated


K A Z A K H S T A N

ALJAN MUNAI: Creditors Must File Claims by December 30
ALLIANCE BANK: Restructuring Recognized in Great Britain
ARCH STROY: Creditors Must File Claims by December 30
ASEM AI: Creditors Must File Claims by December 30
BTA BANK: Expects to Return to Profitability in 2011

BTA BANK: Restructuring Recognized in Great Britain
COMPLECT LLP: Creditors Must File Claims by December 30
CONSTANTA ELECTRONICS: Creditors Must File Claims by December 30
D OIL: Creditors Must File Claims by December 30
FOOD CONTRACT: Moody's Assigns (P)Ba3 Rating on Senior Bonds

KAZ ROSS: Creditors Must File Claims by December 30
LAD COMPANY: Creditors Must File Claims by December 30
MEGA STROY: Creditors Must File Claims by December 30
NS TECHNO: Creditors Must File Claims by December 30
NSK LLP: Creditors Must File Claims by December 30

OIL TANKERS: Creditors Must File Claims by December 30
PRIISHYMYE LLP: Creditors Must File Claims by December 30
R-AUTO LLP: Creditors Must File Claims by December 30
SATPAY SU: Creditors Must File Claims by December 30
SHYGYS STROY: Creditors Must File Claims by December 30

STAL KANAT: Creditors Must File Claims by December 30
TANDEM-4 LLP: Creditors Must File Claims by December 30
TECHNOCOM II: Creditors Must File Claims by December 30


K Y R G Y Z S T A N

CCS LLC: Creditors Must File Claims by January 20


L U X E M B O U R G

GELDILUX-TS-2007 SA: S&P Cuts Rating on Class E Notes to 'B-'
ORCO PROPERTY: KB Cuts Price Estimate Over Debt Restructuring Woes


N E T H E R L A N D S

ADAGIO CLO: Moody's Cuts Ratings on Three Classes of Notes to 'B3'
ARES EURO: Moody's Does Not Take Rating Actions on Notes
HALCYON STRUCTURED: Moody's Cuts Rating on Class E Notes to 'Caa2'
LEOPARD CLO: Moody's Cuts Ratings on Two Classes of Notes to Caa2


N O R W A Y

PETROMENA ASA: Says Oslo Court to Open Bankruptcy Proceedings


R U S S I A

A&T INVEST: Creditors Must File Claims by December 30
AK TRANSNEFTEPRODUCT: S&P Changes Outlook to Stable From Negative
FEDERAL GRID: S&P Changes Outlook to Stable; Affirms Corp. Rating
RENAISSANCE CAPITAL: S&P Cuts Counterparty Credit Rating to 'B'
RUSSIAN CORPORATION: S&P Keeps B Short-Term Issuer Credit Ratings

RUSSIAN RAILWAYS: S&P Gives Stable Outlook; Affirms Issuer Ratings
VNESHECONOMBANK: S&P Changes Outlook to Stable From Negative


S P A I N

AIR COMET: Shuts Down Operations Over Unpaid Bills
BANKINTER 2: S&P Downgrades Rating on Class E Notes to 'D'
BANKINTER 3: S&P Downgrades Rating on Class E Notes to 'D'
BBVA CONSUMO: Moody's Reviews 'Ba2' Rating on Class C Notes
EDT FTPYME: Moody's Junks Rating on Class C Notes From 'Ba2'

FONCAIXA FTGENCAT: Moody's Cuts Rating on Class C Notes to 'Ba1'
GC FTPYME: Moody's Downgrades Rating on Class E Notes to 'Caa3'
SANTANDER EMPRESAS: S&P Downgrades Ratings on Class F Notes to 'D'
TDA IBERCAJA: S&P Downgrades Ratings on Class E Notes to 'D'


S W E D E N

FORD MOTOR: Settles Commercial Terms to Volvo's Sale to Geely
GENERAL MOTORS: BAIC Acquires Saab Unit's Technology for US$200MM


T U R K E Y

PETROL OFISI: Fitch Affirms Issuer Default Ratings at 'BB-'


U K R A I N E

AGRO-N.I.V.A. LLC: Creditors Must File Claims by December 30
BIRS LLC: Creditors Must File Claims by December 30
MIRGOROD INDUSTRIAL: Creditors Must File Claims by December 30
REAL-ROUL LLC: Creditors Must File Claims by December 30
SERVICEPACK LLC: Creditors Must File Claims by December 31

UKRAGROTEX LLC: Creditors Must File Claims by December 31
VALMI AVTOMOTIV: Creditors Must File Claims by December 30


U N I T E D   K I N G D O M

CALA GROUP: Has Debt-For-Equity Deal with Bank of Scotland
CHESTER ASSET: S&P Keeps Watch Developing on 'BB'-Rated Notes
FORMPRO MAIL: In Administration; KPMG Appointed
IBS-STL UK: 8 Stores Sold to Koorong, 6 to Crusade Int'l
LITHO SUPPLIES: In Administration; MCR Appointed

MORTGAGE TIMES: Enters Into Administration
NORTEL NETWORKS: To Sell VOIP Business to Genband for US$282MM
ROYAL BANK: Moody's Affirms Ratings on Preference Shares at 'B3'
TATA STEEL: Lord Mandelson Calls for Review on Corus Plant Closure
TURQUOISE: London Stock Exchange Takes Control

* UK: Corporate Insolvencies Fall In November, Experian Says


X X X X X X X X

* Chemicals Sector Needs New Strategies to Regain Profitability

* BOND PRICING: For the Week December 21 to December 25, 2009





                         *********



=============
F I N L A N D
=============


TIMBERHEART OY: Honkarakenne Liquidates Holdings
------------------------------------------------
Honkarakenne Oyj on December 21 completed an agreement to sell its
38% holding in the Lahti-based provider of wooden buildings, Oy
TimberHeart Ltd, to the company's private shareholder, Risto
Kontinen.  He will continue as TimberHeart's principal shareholder
and Managing Director.  The parties in the transaction have agreed
that the sale price will remain undisclosed.

TimberHeart Oy will continue its operations as an independent
company specializing in timber frame buildings, and the
Honkarakenne factories in Alajarvi and Karstula will keep
providing the frame sections and wooden parts of the TimberHeart
buildings, as before.

Honkarakenne relinquishes its holding in TimberHeart Oy as part of
its on-going measures to streamline the entire group's structure.
Honkarakenne's own marketing and sales activities are focused on
the promotion of the Honka brand in the premium customer segments
of selected target markets.

Oy TimberHeart Ltd is a Lahti-based company which was established
in 2002.  The company provides timber frame buildings for both
domestic and international markets.  TimberHeart buildings have
been on display, for example, at the Heinola Housing Fair in 2004
and the Espoo Housing Fair in 2006.


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


BELVEDERE SA: Bruce Willis to Get 3.3% Stake in Marketing Deal
--------------------------------------------------------------
Ladka Bauerova at Bloomberg News reports that Belvedere SA said
actor Bruce Willis will get a 3.3% stake in the company as part of
an accord for marketing the Sobieski brand.

Bloomberg relates the company said in a Dec. 22 statement
distributed by Hugin Mr. Willis is allowing Belvedere to use his
image to market Sobieski worldwide for four years in exchange for
the stake.

According to Bloomberg, the company said the actor's support will
help Sobieski expand in the U.S. where sales doubled this year.

Bloomberg recalls Belvedere was granted protection from creditors
in July 2008 after violating the terms of its notes by
repurchasing more of its stock than allowed.  The company must
sell its Marie Brizard unit by next June, a French court ruled on
Nov. 11 as a condition to ending the company's bankruptcy case,
Bloomberg notes.

Belvedere SA -- http://www.belvedere.fr/-- is a France-based
company engaged in the production and distribution of beverages.
The Company's range of products includes vodka and spirits, wines,
and other beverages, under such brands as Sobieski, William Peel,
Marie Brizard, Danzka and others.  Belvedere SA operates through
its subsidiaries, including Belvedere Czeska, Belvedere
Scandinavia, Belvedere Baltic, Belvedere Capital Management,
Sobieski SARL and Sobieski USA, among others.  It is present in a
number of countries, such as Poland, Lithuania, Bulgaria, Denmark,
France, Spain, Russia, Ukraine, the United States and others.  In
addition, the Company holds a minority stake in Abbaye de
Talloires, involved in the hotel and wellness centre activities.


CMA CGM: Bondholders Approve Changes to Terms of Notes
------------------------------------------------------
Andrea Rothman at Bloomberg News reports that CMA CGM SA
bondholders approved changes to the terms of their notes that will
allow the company to raise more debt and help it avoid bankruptcy.

According to Bloomberg, Anne-France Malrieu, a company
spokeswoman, said in a Dec. 22 telephone interview holders of
US$570 million of senior bonds agreed to change the terms of the
debt, giving new lenders priority for payment in a default.

Bloomberg relates CMA CGM had warned investors in its euro- and
dollar-denominated bonds due 2012 and 2013 that without their
agreement, the company might have to seek bankruptcy protection.
The company still needs court approval to raise new financing that
would be senior to existing debt, Bloomberg notes.

Citing a Dec. 16 notice to bondholders, Bloomberg says CMA CGM is
seeking to restructure US$5.6 billion of borrowing and raise new
money.

Headquartered in Marseilles, France, CMA CGM S.A. --
http://www.cma-cgm.com/-- ships freight PDQ.  The marine
transportation company is one of the world's leading container
carriers.  Through subsidiaries it operates a fleet of about 370
vessels that serve more than 400 ports around the globe, and it
maintains a network of about 650 facilities in about 150
countries.  In addition to hauling containers by sea, CMA CGM
provides logistics services, arranging the transportation of
containerized freight by river, road, and rail.  The company's
tourism division arranges cruises and other travel services.
Chairman Jacques Saade founded the company in 1978.


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


ESCADA AG: Mittal Family Also Buying U.S. Assets
------------------------------------------------
Following an extensive global marketing effort, Escada AG, the
parent company of the Escada (USA) Inc., sold its assets in its
German insolvency proceeding to HSBC Trustee (C.I.) Limited, as
trustees of the Royal II Trust, of 1 Grenville Street, St.
Heller, Jersey, JE4 9PF, a subsidiary of the Mittal Family
Trusts.

Since the closing of the Escada AG transaction on December 1,
2009, Escada AG has ceased providing financial or marketing
support to Debtor Escada USA, Gerald C. Bender, Esq., at
O'Melveny & Myers LLP, in New York, tells Bankruptcy Judge Stuart
M. Bernstein for the Southern District of New York.

According to Mr. Bender, the preliminary insolvency administrator
appointed in the German proceeding, Dr. Christian Gerloff,
retained KPMG to undertake a global search for an equity investor
or purchaser of the assets of the ESCADA Group, including the
assets of Escada USA.

KPMG's efforts involved contacting more than 180 potential
purchasers, negotiating confidentiality agreements with roughly
50 interested parties, and providing access for approximately 30
potential purchasers to an electronic data room containing
sufficient information about the Debtor.  In Germany, offers were
received from several potential purchasers, Mr. Bender relates.

Subsequent to the closing of the Escada AG Sale, Dr. Gerloff
determined that "it was not realistic or practical, given the
time and financial limitations on the Administrator and the
pendency of [the] Chapter 11 case, to include Escada USA's assets
in the sale process in Germany."

As a result, Escada USA, among other subsidiaries of Escada AG
that were not part of the sale carried out by Dr. Gerloff for
Escada AG, was left to negotiate for individual asset sales.

Escada USA hopes to effectuate a sale of its assets and business
as a going concern; preserve its business operations in the
United States; continue to employ a significant number of its
approximately 235 employees; and maximize the value of its estate
for its creditors, according to Mr. Bender.

Absent a prompt sale, he says, the value of the Escada USA assets
will continue to decline and the Debtor will not have sufficient
funding to continue operations, Escada USA Executive Vice
President, Chief Financial Officer and Treasurer Christian D.
Marques, told Judge Bernstein in a declaration filed with the
Court.

            Terms of Proposed Sale to Escada US Subco

After extensive due diligence and negotiations, Escada US Subco
LLC made an offer for Escada USA dated December 21, 2009,
according to Mr. Bender.

Escada US Subco is a Delaware limited liability company formed by
HSBC Trustee Limited to acquire Escada USA's assets.

Because Escada AG was Escada USA's sole supplier of luxury retail
fashions and Escada USA is not the registered owner or licensor
of the "Escada" brand name, a sale to the proposed Purchaser
represents the best opportunity for the Debtor to maximize the
value of its assets for the benefit of its estate, Mr. Bender
asserts.

For the sale of its assets to the Purchaser, Escada USA is
contemplated to:

  (i) receive US$6 million;

(ii) have certain of its liabilities assumed by the Purchaser;
      and

(iii) receive reimbursement for new inventory it purchased from
      and after the execution of the parties' Asset Sale and
      Purchase Agreement.

Within two days following the execution of the Agreement, the
Purchaser will deposit with The Bank of New York Mellon by
certified check or wire transfer of immediately available funds,
an amount equal to US$1,000,000.  BNY Mellon is the designated
escrow agent under an Escrow Agreement among the parties dated as
of December 21, 2009.

The closing of the sale transaction and the assumption of the
liabilities under the Asset Sale Agreement is contemplated to
take place on the second day after customary conditions to
Closing have been satisfied.  In general, the Agreement may be
terminated by either Escada USA or the Purchaser if, among other
things, the Closing has not occurred on or before January 15,
2010.

Pursuant to the Agreement, the Purchaser will acquire
substantially all of Escada USA's assets that are owned, held or
used by the Debtor in connection with its business.  The primary
assets the Purchaser will not be acquiring are:

  (1) all cash and cash equivalents, including the Debtor's bank
      accounts, certificates of deposit, refunds and other
      prepaid assets;

  (2) income tax refunds, if any;

  (3) security and other recoverable deposits other than those
      arising from or in connection with the Debtor's real
      property leases that are assumed and assigned to
      Purchaser; and

  (4) all claims and rights under insurance policies.

The Agreement also provides for Escada USA's assumption and
assignment to the Purchaser of the majority of its executory
contracts and unexpired leases.  The Purchaser will have until
three days prior to the closing of the Sale to designate a
contract as an assumed or rejected contract.

Furthermore, the Purchaser has agreed to make written offers of
employment, effective as of the Closing, to at least 80% of
Escada USA's current employees.  All employment offers will be at
initial wages and benefits that are substantially comparable in
the aggregate to the benefits in effect for each employee
immediately prior to closing of the Sale.

Against this backdrop, Escada USA, with the support of the
Official Committee of Unsecured Creditors, seek Court approval of
the sale of its assets to Escada US Subco pursuant to Sections
363 and 365 of the Bankruptcy Code.

A full-text copy of Escada USA-Escada Subco Asset Sale and
Purchase Agreement is available for free at:

      http://bankrupt.com/misc/Escada_AssetSalePact.pdf

A complete schedule of prepetition contracts and unexpired leases
for assumption under the parties' Sale Agreement is available at
no charge at http://bankrupt.com/misc/Escada_AssumedPacts.pdf

                         *     *     *

At the behest of Escada USA, the Court will convene an expedited
hearing on December 31, 2009, at 10:00 a.m., Eastern Time, to
consider approval of the Sale Motion.

Objections to the request, if any, must be served no later than
one day prior to the Sale Hearing.  Similarly, objections to the
proposed assumption and assignment of the Contracts and Leases,
or to their designated Cure Amounts, must be served no later than
the Objection Deadline.

Pursuant to the Sale Agreement, Escada USA needs to obtain Court
approval of the Sale by December 31 and to consummate the Sale by
early January 2010 "to provide for the timely receipt and
delivery of merchandise and the continued operation in the
ordinary course of business, and thus to maximize the value
received in connection with the Sale," Mr. Bender notes.

Subsequently, Escada USA filed with the Court a Notice of the
Hearing which it served to parties-in-interest.

                        About Escada AG

The ESCADA Group -- http://www.escada.com/-- is an international
fashion group for women's apparel and accessories, which is active
on the international luxury goods market.  It has pursued a course
of steady expansion since its founding in 1976 by Margaretha and
Wolfgang Ley and today has 182 own shops and 225 franchise
shops/corners in more than 60 countries.

As of August 10, 2009, the Escada Group operated 176 owned stores
and so-called shop in shops, of which 26 owned stores are located
in the United States and operated by Escada (USA) Inc. and 2
stores are planned to be opened in the United States before year
end.  Escada Group products are also sold in 163 stores worldwide
which are operated by franchisees.  Escada Group had total assets
of EUR322.2 million against total liabilities of 338.9 million as
of April 30, 2009.

Wholly owned subsidiary Escada (USA) Inc. filed for Chapter 11 on
August 14, 2009 (Bankr. S.D.N.Y. Case No. 09-15008).  Judge Stuart
M. Bernstein handles the case.  O'Melveny & Myers LLP has been
tapped as bankruptcy counsel.  Kurtzman Carson Consultants serves
as claims and notice agent.  Escada US listed US$50 million to
US$100 million in assets and US$100 million to US$500 million in
debts in its petition.

Bankruptcy Creditors' Service, Inc., publishes Escada USA
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Escada USA, and the insolvency proceedings of ESCADA AG and its
units.  (http://bankrupt.com/newsstand/or 215/945-7000)


WESTLB AG: European Commission to Probe Into Bad Bank Plan
----------------------------------------------------------
Ben Moshinsky at Bloomberg News reports that WestLB AG's plan to
set up a bad bank faces an in-depth investigation from European
Union regulators who said they have "doubts" the plan meets the
region's state aid rules.

Bloomberg relates the European Commission said in an e-mailed
statement that it gave temporary approval to German plans for a
EUR3-billion (US$4.3 billion) capital injection to ensure
financial stability.

"Basically, we want to make sure that there's no over-
compensation with the plan," Bloomberg quoted Jonathan Todd,
spokesman for the commission, as saying by telephone Dec. 22.  "We
wouldn't have opened this enquiry if we didn't have concerns."

Bloomberg recalls the commission forced WestLB to reduce its
assets by half and shed risky businesses when it approved
EUR5 billion of state aid in May.  Bloomberg says assets with a
nominal value of EUR85 billion, including government bonds and
student loans, will be shifted to the bad bank as part of the
restructuring plan agreed with German regulators in November.

                           About WestLB

Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets
and private equity products, asset management, transaction
services and real estate finance to institutions.

In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB AG's wholly owned
subsidiary WestLB Securities Inc., a registered broker-dealer
and member of the NASD and SIPC.

WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 10,
2009, Moody's Investors Service affirmed WestLB's Prime-1
short-term ratings and changed the outlook on its E+ unsupported
bank financial strength rating (BFSR, which maps directly to a B2
baseline credit assessment, BCA) to "developing" from "negative".
Additionally, the Caa1 rating on WestLB's Tier 1 hybrid capital
securities (silent participations/"Stille Einlagen") and the B3
rating on its Tier 2 junior subordinated debt ("Genussscheine")
were also affirmed.


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G R E E C E
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EMPORIKI BANK: Moody's Cuts Bank Financial Strength Rating to D
---------------------------------------------------------------
Moody's Investors Service downgraded the deposit and debt ratings
of the National Bank of Greece (to A1 from Aa3), EFG Eurobank
Ergasias (to A2 from A1) and Emporiki Bank of Greece (to A2 from
A1).  The action was prompted by a weakening of the banks' stand-
alone financial strength, combined with Moody's reassessment of
the country's ability to support its banking system, following the
lowering of the national government debt rating earlier to A2 from
A1.  The downgrade of the government rating also triggered a
lowering of the government-guaranteed debt rating of Alpha Bank to
A2 from A1.  The outlook for the deposit and debt ratings affected
by the announcement is negative.  A complete list of rating
actions on the four banks mentioned can be found below.

Moody's notes that its ratings on the other five Greek banks are
not affected by the announcement.

   Adverse Operating Environment Pressuring Banks' Stand-Alone
                        Financial Strength

Although the direct impact of the global crisis was not
immediately felt by Greek banks, the repercussions came gradually
in the form of fundamental economic slowdown both in Greece and
the South East European markets where they operate.  Business
growth has slowed and problem loan levels have increased during
the course of the year.  The sharp increase in loan loss
provisioning requirements, coupled with rising funding costs, is
depressing bank profits.  Moody's expect the earning power of
Greek banks to be further weakened over the next few quarters as
economic and business conditions remain unfavorable.

These challenges have prompted Moody's to lower the financial
strength ratings of the National Bank of Greece, EFG Eurobank and
Emporiki Bank which, in turn, contributed to the downgrade of the
banks' deposit and debt ratings.  As suggested by the negative
outlook on the banks' ratings, further actions due to weaker-than-
anticipated financials cannot be excluded next year.

            National Bank of Greece BFSR lowered to C


Moody's downgrade of NBG's BFSR to C with a negative outlook from
C+ reflects the deterioration in the bank's financial fundamentals
resulting from the weakening economic and operating conditions in
Greece.  Specifically, the bank's asset quality, earnings and
liquidity have weakened.  Non-performing loans had risen to 5.8%
by September 2009 from 4.1% in December 2008.  Earnings are down
on the back of decelerating loan growth in both Greece and the
Balkans, lower non-interest income, and significantly higher
credit costs.  Over the past two years, the bank has also
increased its reliance on short-term market funding, with "due to
banks" (including ECB funding) increasing from approximately 11%
to 19% of total liabilities.

Despite the downgrade however, NBG remains the highest rated Greek
bank, benefiting from a solid deposit franchise (with the loans-
to-deposits ratio at under 100%), a successful EUR1.25 billion
rights issue that has strengthened its capital base (September
2009 core Tier 1 ratio of 10.9%), and a strong positive earnings
contribution from its Turkish subsidiary, Finansbank.

                EFG Eurobank's BFSR lowered to C-

Moody's downgrade of EFG Eurobank's BFSR to C- stable outlook
(mapping into a baseline credit assessment (BCA) of Baa1) from C
reflects the deterioration in the bank's financial performance
both in Greece and abroad.  For the nine months to September 2009,
the bank's foreign operations suffered EUR36 million of post-tax
losses compared to profits of EUR135 million the previous year.
Similar to NBG above, EFG Eurobank's credit quality indicators
have weakened (with impaired loans at 6.4% in September 2009;
December 2008: 3.9%) leading to significantly higher credit costs.
EFG Eurobank focuses on consumer credit, mortgages and small
business loans, which are the sectors that have suffered the most
since the beginning of the economic downturn.

                Emporiki Bank's BFSR lowered to D

Moody's downgrade of Emporiki's BFSR to D with a negative outlook
from D+ (on review) reflects its weak financial fundamentals, with
the bank reporting significant losses in 2008 and 2009, and
expected to remain loss-making throughout 2010.  Financial
fundamentals are affected primarily from a substantial increase in
provisioning charges, but also from reduced interest and non-
interest income.  The bank has also become more dependent on
Credit Agricole S.A. (CASA, Emporiki's 86% major shareholder) to
fund its business and growth; as at September 2009, funding from
CASA accounted for 33% of total liabilities with the loans-to-
deposits ratio at 143%.  This rating action also incorporates
Emporiki's adequate capitalization -- following a EUR850 million
capital injection earlier this year and the decision for an
additional EUR989 million capital injection taken in December 2009
-- and management's commitment to implement a comprehensive
restructuring and development plan (announced in October 2009)
that will address the areas of risk monitoring, cost optimization,
human resource management and restoring commercial performance.

The negative outlook on Emporiki's ratings reflects both the
adverse operating environment and the negative outlook on CASA's
ratings.

   Lower Capacity of Country to Provide Support Also A Factor

Moody's approach to assessing a country's capacity to support its
banking system was refined earlier this year and is now more
closely aligned to the national government's own financial
strength.  This is based on Moody's belief that, in periods of
prolonged systemic crisis, the ability of the country's key public
institutions to support the banking system tends to converge with
the strength of the balance sheet of the national government.

For Greece, the systemic support anchor used by Moody's to assign
the supported deposit and debt ratings to Greek banks is
positioned one notch above the national government's local
currency debt rating.  Following the downgrade of the Greek
Government's debt rating to A2 from A1, Moody's lowered Greece's
systemic support indicator to A1 from Aa3, which in turn
contributed to the rating actions announced in this press release.

The government's debt rating carries a negative outlook.  A
further lowering of the government debt rating could prompt an
additional reassessment of the country's capacity to support its
banking system.  This, in turn, could potentially lead to further
rating actions on the country's banks.  Moody's notes however
that, as seen by various government actions over the last year,
the country continues to enjoy large and varied resources that can
be deployed in support of its banks.

The specific rating changes are:

National Bank of Greece

  -- BFSR downgraded to C (negative outlook) from C+

  -- Deposit ratings downgraded to A1 (negative outlook) from Aa3

  -- Backed (government-guaranteed) senior unsecured debt
     downgraded to A1 (negative outlook) from Aa3

NBG Finance plc:

  -- Backed senior unsecured debt ratings downgraded to A1
     (negative outlook) from Aa3

  -- Backed subordinated debt ratings downgraded to A2 (negative
     outlook) from A1

  -- Hybrid ratings remain on review pending implementation of
     Moody's amended methodology for rating hybrid debt
     instruments.

EFG Eurobank Ergasias SA

  -- BFSR downgraded to C- (stable outlook) from C.  BFSR maps
     into a Baa1 BCA which carries a negative outlook

  -- Deposit ratings downgraded to A2 (negative outlook) from A1

  -- Backed (government-guaranteed) senior unsecured MTN
     downgraded to A2 (negative outlook) from A1

EFG Hellas Plc:

  -- Backed senior unsecured debt ratings downgraded to A2
     (negative outlook) from A1

  -- Backed subordinated debt ratings downgraded to A3 (negative
     outlook) from A2

EFG Hellas (Cayman Islands) Ltd:

  -- Backed senior unsecured debt ratings downgraded to A2
     (negative outlook) from A1

  -- Backed subordinated MTN downgraded to A3 (negative outlook)
     from A2

  -- Hybrid ratings remain on review pending implementation of
     Moody's amended methodology for rating hybrid debt
     instruments.

Emporiki Bank of Greece S.A.

  -- BFSR downgraded to D (negative outlook) from D+

  -- Deposit ratings downgraded to A2 (negative outlook) from A1

  -- Senior unsecured MTN downgraded to A2 (negative outlook from
     A1

  -- Subordinated MTN downgraded to A3 (negative outlook) from A2

Emporiki Group Finance Plc:

  -- Backed senior unsecured debt ratings downgraded to A2
     (negative outlook) from A1

  -- Backed subordinated debt ratings downgraded to A3 (negative
     outlook) from A2

Alpha Bank AE

  -- Backed (government-guaranteed) senior unsecured debt ratings
     downgraded to A2 (negative outlook) from A1

  -- All other ratings of the bank are unaffected by this rating
     action.

The last rating actions on National Bank of Greece and EFG
Eurobank Ergasias were implemented on November 3, 2009, when
Moody's placed their respective Aa3 and A1 deposit and debt
ratings on review for possible downgrade.  The last rating action
on Alpha Bank AE was also implemented on November 3, 2009, when
Moody's placed its A1 government-guaranteed debt rating on review
for possible downgrade.

The last action on Emporiki Bank of Greece was implemented on
May 29, 2009, when Moody's placed the A1 long-term senior debt and
deposit ratings and D+ BFSR of Emporiki Bank of Greece on review
for possible downgrade.

Headquartered in Athens, Greece, National Bank of Greece SA
reported total assets of EUR112.2 billion at the end of September
2009.  Headquartered in Athens, Greece, EFG Eurobank Ergasias
reported total assets of EUR84.3 billion at the end of September
2009.  Headquartered in Athens, Greece, Alpha Bank SA reported
total assets of EUR68.8 billion at the end of September 2009.
Headquartered in Athens, Greece, Emporiki Bank of Greece reported
total assets of EUR29.1 billion at the end of September 2009.


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


INVITEL HOLDINGS: S&P Raises Corporate Credit Rating to 'B'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it raised to 'B' from
'CCC+' its long-term corporate credit ratings on Hungary-based
fixed-line telecommunications operator Invitel Holdings A/S and
related entities Magyar Telecom B.V. and HTCC Holdco I B.V.,
following the completion of a EUR345 million senior secured notes
offering to refinance existing debt.

The issue rating on the new EUR345 million 9.5% senior secured
notes, due 2016 and issued by Magyar Telecom B.V., was also raised
to 'B' from 'CCC+'.

In addition, S&P raised the issue rating on Magyar Telecom B.V.'s
EUR126 million floating-rate notes due 2013 and the issue rating
on HTCC Holdco I B.V.'s EUR17 million junior subordinated payment-
in-kind notes due 2013, to 'CCC+' from 'CCC-'.

All corporate credit and issue ratings were removed from
CreditWatch where they had been placed with positive implications
on Dec. 7, 2009.  The outlook on the corporate credit ratings is
stable.

Meanwhile, the issue ratings on the EUR131 million 10.75% notes
due 2012 at Magyar Telecom B.V. and on the EUR165 million senior
secured credit facilities at the group's subsidiary Invitel Zrt.
were withdrawn following their refinancing with the new senior
secured notes.

"The rating actions reflect S&P's assessment of the positive
implications on Invitel Holdings' liquidity profile of the
completed refinancing, which alleviates the group's demanding debt
maturity profile and increases cash on hand by about EUR24.5
million, according to the final offering memorandum," said
Standard & Poor's credit analyst Matthias Raab.  In addition, the
group no longer has to comply with financial maintenance
covenants.  Further, S&P expects that Invitel Holdings will be
able to improve its free operating cash flow in the near to medium
term, which will provide continued support to liquidity.

Nevertheless, the ratings on Invitel Holdings remain constrained
by the group's high leverage, exposure to currency mismatches, and
its aggressive financial policy, as demonstrated by its recent
distressed exchange offer.  In addition, S&P believes that the
group's EBITDA generation could suffer somewhat in the near term
from the late-cyclical effects of the current economic downturn,
continued structural fixed-to-mobile substitution, stagnant
wholesale data revenues, and high competitive price pressure.

The proceeds of the EUR345 million senior secured notes have been
applied to repayment of the outstanding senior facilities and
second-lien debt, and to purchase for cash at a price of EUR1,040
per EUR1,000 principal amount the EUR131 million 2012 notes.
Following this refinancing, the company has only minor debt
repayment requirements under its existing finance lease
obligations and Memorex Turkey loan until 2012.

"The stable outlook reflects S&P's expectation that Invitel
Holdings is likely to generate improved free cash flow over 2010
and thereby improve its liquidity position and net senior leverage
credit measures," said Mr. Raab.


* HUNGARY: Retail Sector Liquidation Procedures Down 14% in 2H09
----------------------------------------------------------------
The number of liquidation procedures initiated against retail
companies in Hungary declined 14% yr/yr to 827 in the second half
of 2009, MTI-Econews reports, citing to data compiled by Opten,
which collects information on companies.

According to the report, Opten noted that the number of
liquidation procedures initiated against retail companies in
Hungary rose 41% yr/yr to 1,219 in the first half of 2009.


=============
I C E L A N D
=============


KAUPTHING SINGER: Depositors May Not Recover Money Until 2017
-------------------------------------------------------------
Emma Keens at The Times reports that Kaupthing Singer &
Friedlander Isle of Man's more than 4,000 depositors may have to
wait until 2017 to recover millions of pounds lost when the bank
collapsed last year and that they may have only 80% of those funds
returned.

The report relates the savers received a maximum of GBP50,000
under the Isle of Man Depositors Compensation Scheme, but many
fear that they will never see the rest of their money.

The report recalls the collapse of the Kaupthing Singer &
Friedlander UK's Manx subsidiary dates back to mid-2008, when the
island's regulator, the Financial Services Commission, expressed
concern about the bank's exposure to the struggling economy of
Iceland, which prompted KFSIOM managers to transfer about
GBP550 million, or 50% of its assets, to Kaupthing UK, assuming
that it would be safer there.  Soon afterwards, Kaupthing UK was
put into administration, and the Isle of Man funds were frozen,
the report recounts.  KSFIOM was placed in liquidation in May this
year, the report notes.

The bank's creditors have called for a public inquiry over the
transfer, which could have covered a large percentage of their
losses when the Isle of Man bank went down, the report discloses.

PricewaterhouseCoopers, which is handling KSFIOM's liquidation,
was not available to comment, according to the report.


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


ALLIED IRISH: Explores Ways to Raise Capital, May Need State Aid
----------------------------------------------------------------
Dara Doyle and Colm Heatley at Bloomberg News report that Allied
Irish Banks Plc is looking at ways to raise capital within the
next year.

"We are currently exploring a number of ways to bolster our equity
capital base through asset sales, the introduction of a strategic
investor, and a public share issue which may require government
support," Bloomberg quoted Chairman Dan O'Connor as saying at a
shareholder meeting in Dublin on Dec. 23.

Bloomberg relates the bank's shareholders on Dec. 23 approved its
participation in a so-called bad bank that will buy loans from
lenders at an average 30% discount, reflecting a fall in land
values over the past two years.

Bloomberg says the bank expects to transfer loans with a book
value of EUR24.2 billion (US$34.6 billion) to the bad bank, known
as the National Asset Management Agency.

"There are no viable alternatives for raising that capital," other
than participating in NAMA, Mr. O'Connor said, according to
Bloomberg.  It will "improve Allied Irish's liquidity and funding
position" and "restore confidence."

The government already has a 25% indirect stake in Allied Irish
and rival Bank of Ireland Plc, Bloomberg notes.

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 10,
2009, Fitch Ratings affirmed Allied Irish Banks plc's individual
Rating at 'D/E'.


ANGLO IRISH: Liquidation Will Lead to Massive Losses for State
--------------------------------------------------------------
Simon Carswell at The Irish Times reports that Anglo Irish Bank
was advised that a liquidation of the bank would lead to
substantial losses for the State and increase borrowing costs for
the Government and the other Irish banks.

The report relates state-owned bank was advised by its investment
banking consultants who worked with accountants KPMG and Deloitte
in assessing the bank's future options for an EU Commission
report, that the State would have to inject capital to dissolve
the bank and fund it in a liquidation.

Liquidating the bank immediately or over a one-year period were
among a number of options considered by the bank's senior
management and advisers in advance of submitting a five-year
restructuring plan to the commission last month under the terms of
the EUR4 billion Government bailout, the report notes.  According
to the report, among the other options considered by Anglo for its
future were an orderly wind-down over five years, "a far-reaching
restructuring" and running the bank as a going concern with major
restructuring, which is the preferred option outlined to the EU.

The report says in addition to increasing the borrowing costs of
the Government and other Irish banks, Anglo was also advised that
in a liquidation, the bank would forgo about EUR20 billion in
bonds from the sale of loans to Nama and the State would have to
make up this funding.

A liquidation would also technically result in the triggering of
the Government's bank guarantee, increasing the cost to the State,
the report notes.

The bank's advisers said liquidation would also sharply depress
asset values across the Irish market and ignite capital concerns
for other banks, leading to severe disruption across the domestic
banking sector, the report states.  The bank was told the cost to
the Government in a liquidation would be massive compared to
restructuring and running it as a slimmed-down going concern, the
report discloses.

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at September
30, 2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Nov. 9,
2009, Fitch affirmed Anglo Irish Bank Corporation Ltd.'s
individual rating at 'E'.


BUDGET TRAVEL: Gets Expressions of Interest From Potential Buyers
-----------------------------------------------------------------
Niamh Hennessy at Irish Examiner.com reports that a number of
companies have shown interest in acquiring Budget Travel which
went into liquidation earlier this month.

According to the report, a letter was sent to 97,000 of Budget's
customers on Dec. 21 from the liquidator, Simon Coyle of Mazars
saying Mr. Coyle had been approached by a number of parties who
wish to purchase the business.

"There is every likelihood Budget Travel will be bought," the
report quoted Mr. Coyle as saying.

The report relates Mr. Coyle said to customers that a potential
purchaser would need access to and use of customers' personal
information in the same way as Budget has done in the past.
Mr. Coyle confirmed that the letter was genuine and was sent to
customers so that there would be no issues with data protection,
the report notes.

As reported by the Troubled Company Reporter-Europe, Budget Travel
ceased trading Nov. 25 with the loss of 172 jobs and the closure
of 17 retail shops.

Budget Travel is Ireland's largest tour operator.  The company was
established in May 1975 and had a 30% share of the market.


ELVA FUNDING: S&P Raises Rating on 2007-14 Notes to 'BB+'
---------------------------------------------------------
Standard & Poor's Ratings Services raised to 'BB+' from 'B-' its
credit rating on Elva Funding PLC's EUR34.8 secured credit-linked
variable-rate notes series 2007-14.

This rating action follows an upward revision to the credit
enhancement for these notes, which is now sufficient, in S&P's
opinion, to support a 'BB+' rating.


ULSTER BANK: Moody's Cuts Bank Financial Strength Rating to 'D-'
----------------------------------------------------------------
Moody's Investors Service has confirmed the A2/Prime-1 long-term
bank deposit ratings of Ulster Bank, Ulster Bank Ireland Ltd and
First Active plc and the A2/Prime-1 senior debt ratings of Ulster
Bank Ireland Ltd and First Active.  The Bank Financial Strength
Ratings of each of the banks were downgraded to D- (resulting in a
three notch lower baseline credit assessment of Ba3, down from
Baa3).  In addition the subordinated debt rating of First Active
plc has been confirmed at A3.  The outlook on the BFSRs and the
long-term ratings is changed to negative.  These rating actions
conclude the outstanding review for possible downgrade of the
banks' ratings initiated on November 3, 2009.

Ross Abercromby, Vice President/Senior Analyst and the lead
analyst for the bank at Moody's said "The confirmation of the
A2/P-1 bank deposit and senior debt ratings reflects Moody's view
that the high level of support demonstrated to date by the bank's
parent, Royal Bank of Scotland, will continue, even after the
currently difficult period.  This high level of support has
already been evidenced by the substantial additional capital that
has been injected into Ulster Bank in 2009.  Moody's expect that
this high commitment by RBS will remain in place."

Ross Abercromby commented on the downgrade of the BFSR: "In
Moody's last rating action in August 2009 Moody's had expected
Ulster Bank to benefit more directly from the UK's Asset
Protection Scheme, whereby RBS was to insure at 100% the losses on
those assets from Ulster Bank that are placed into the UK
government's Asset Protection Scheme.  The renewed downgrade of
Ulster Bank's BFSR to D- reflects a change insofar as the bank
will now not benefit from the previously intended scheme, but will
rely on capital injections as they may be required from time to
time throughout the next couple of years.  Although Moody's note
that a substantial proportion of the assets of Ulster Bank are to
be placed into the APS, on a standalone basis Ulster Bank remains
significantly weaker.  Its profitability is expected only to
recover in the medium term, and throughout this time Ulster Bank
will continue to depend on capital injections from its parent over
the coming periods as losses are taken on the bank's riskier
assets."

The D- BFSR reflects Moody's view that the bank will require
further capital over the next couple of years in managing its
problem loans in the very challenging Irish economy.  The outlook
on the BFSR is negative, indicating the significant uncertainty
about the speed and magnitude of further asset quality
deterioration on Ulster Bank's asset quality.  According to
Moody's base loss estimates and further capital injections in the
near future, Ulster Bank should remain adequately capitalized,
however analyzing the bank's exposure to Moody's stressed loss
estimates reveals the potential for significant further capital
shortfalls.  Notwithstanding, at D-, the BFSR also reflects
Moody's view that the bank's franchise across the island of
Ireland will remain strong.  It is one of the major banks in
Northern Ireland and is the third clearing bank in the Republic of
Ireland.  As a result of this Moody's expects that the bank will
be able to return to more normal levels of profitability in the
medium to longer term future as and when the Irish economy
recovers.

The confirmation of the A2 bank deposit and senior debt rating
reflects the ongoing support from RBS (rated Aa3, stable outlook)
and Moody's view that this support will be ongoing.  However the
outlook is negative reflecting the negative outlook on the BFSR,
indicating the link of the debt rating to the BFSR ratings.

The last rating action on the rated Ulster Bank entities was on
November 3, 2009 when the ratings were placed on review for
possible downgrade.

These ratings were confirmed:

Ulster Bank Ltd:

  -- Long-term bank deposits at A2
  -- Short-term bank deposits at Prime-1
  -- Issuer Rating at A2

Ulster Bank Ireland Ltd:

  -- Long-term bank deposits at A2
  -- Short-term bank deposits at Prime-1
  -- Senior unsecured debt at A2
  -- Commercial paper at Prime-1

Ulster Bank Finance plc:

  -- Backed senior unsecured debt at A2
  -- Backed commercial paper at Prime-1

First Active plc:

  -- Long-term bank deposits at A2
  -- Short-term bank deposits at Prime-1
  -- Senior unsecured debt at A2
  -- Subordinated debt at A3
  -- Commercial paper at Prime-1
  -- Other short-term at Prime-1

First Active Treasury plc:

  -- Backed senior unsecured debt at A2
  -- Backed subordinated debt at A3
  -- Commercial paper at Prime-1
  -- Backed other short-term at Prime-1

These ratings were downgraded:

Ulster Bank Ltd:

  -- Bank financial strength to D- from D+

Ulster Bank Ireland Ltd:

  -- Bank financial strength to D- from D+

First Active plc:

  -- Bank financial strength to D- from D+

Headquartered in Belfast, UK, Ulster Bank Ltd reported
consolidated assets of GBP69.7 billion at year-end 2008.

Headquartered in Dublin, Ireland, Ulster Bank Ireland Ltd reported
consolidated assets of EUR58 billion at year-end 2008.

Headquartered in Dublin, Ireland, First Active plc reported
consolidated assets of EUR16.9 billion at year-end 2008.


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


DA VINCI: Defaulted Alitalia Bonds Won't Affect Moody's Ratings
---------------------------------------------------------------
Moody's Investors Service notes that the loss allocation related
to the eight defaulted Alitalia reference obligations has no
rating implication for the outstanding rated notes issued by Da
Vinci Synthetic plc.

Following the bankruptcy of Alitalia (representing 15% of the
reference entity exposure), Intesa Sanpaolo Spa (Aa2/Prime-1)
served a credit event notice in January 2009 for an aggregate
amount of US$68.0 million.  As of December 2009, the credit
protection amount (losses allocated) related to the eight
defaulted Alitalia reference obligations was confirmed at
US$35.9 million.  Of this amount, US$26 million was deducted from
the unrated first loss piece and EUR7.9 million from the Class C
notes outstanding amount of EUR15.6 million.  The Class C notes
current rating is Ca.

In total, US$322.3 million of the initial credit default swap
notional amount of US$545.8 million has been canceled so far.  As
of December 2009, the aggregate portfolio notional amount accounts
for US$291.8 million and comprises 18 different obligors.  During
Moody's recent analysis, Moody's have assessed the impact of the
updated collateral base values on the reference portfolio.
Furthermore, Moody's tested sensitivities and rating stability on
the outstanding classes of notes to account for the increased
credit risk associate with the airline companies (obligors) as
well as the weak demand for certain types of aircrafts in light of
the global economic downturn.  Concluding this analysis, Moody's
determined that the current ratings are not affected.

Da Vinci Synthetic plc is the second synthetic securitization of
aircraft financing and aviation industry loans originated by
Intesa.  It also represents the re-securitization of the majority
of the Leonardo Synthetic plc portfolio.  The originator's
objective in this transaction is to benefit from credit risk
protection on a revolving pool of aircraft leases.  The risk
transfer is achieved through a credit default swap between Merrill
Lynch International and Intesa and part of the risk is transferred
by Merrill Lynch International via the issuance of several classes
of credit-linked notes and credit default swaps between Merrill
Lynch and the swap counterparty.

The last rating action date for the outstanding rated notes was 9
April 2009.

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.


MARIELLA BURANI: Holding Companies Won't Be Liquidated
------------------------------------------------------
Elisa Martinuzzi and Armorel Kenna at Bloomberg News report that
Walter Burani denied that the holding companies that control 71%
of Mariella Burani Fashion Group SpA will be liquidated.

                           Rescue Plan

As reported by the Troubled Company Reporter-Europe on Dec. 8,
2009, Bloomberg News, citing Messaggero, said that Burani's
creditors weren't positive about a rescue plan, which includes
writing off EUR120 million (US$181 million) of debt.  According to
Bloomberg, Messagero said the proposal also includes conversion of
EUR60 million of debt into equity, rescheduling EUR308 million of
debt and a new loan of EUR35 million.

Mariella Burani Fashion Group SpA -- http://www.mariellaburani.it/
-- is an Italy-based company, operating in the fashion market.  It
designs, produces and distributes a range of apparel, knitwear,
leather accessories, jewelry and footwear.  The Company divides
its operation into four divisions: Clothing Division, Leather
Division, Digital Fashion and Fashion Jewellery.  The Company's
brand portfolio comprises the Company's own brands, such as
Mariella Burani, Rene Lezard, Amuleti J, Blossom Burani, Ter et
Bantine, Braccialini, FrancescoBiasia, Baldinini, Coccinelle,
Sebastian, Facco Gioielli, Valente, Rosato and Calgaro, among
others, and the licensed brands: Vivienne Westwood (Anglomania),
Emmanuel Ungaro (Fuchsia), Alviero Martini, Thierry Mugler
(Mugler), Patrizia Pepe (bimbo), Missoni, Warner Bros, Miss Sixty,
Sweet Years, Gherardini e John Galliano, among others.  Among the
subsidiaries there are: Mariella Burani Retail Srl, Antichi
Pelletteri SpA, Coccinelle Store France SA and Mandarina Duck
Gmbh.


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


ALJAN MUNAI: Creditors Must File Claims by December 30
------------------------------------------------------
Creditors of LLP Aljan Munai 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
October 12, 2009.


ALLIANCE BANK: Restructuring Recognized in Great Britain
--------------------------------------------------------
The restructuring proceedings that have been commenced in respect
of JSC Alliance Bank before the Specialized Financial Court in
Almaty have been recognized in Great Britain as a foreign main
proceeding.  This recognition was granted by order of the High
Court of Justice of England and Wales on 18 December 2009 pursuant
to the UNCITRAL Model Law on cross-border insolvency as set out in
the Cross Border Insolvency Regulations 2006.

The consequences of obtaining this recognition are that, in Great
Britain:

   -- commencement or continuation of individual actions or
      individual proceedings concerning the Bank's assets, rights,
      obligations or liabilities is stayed;

   -- execution against the Bank's assets is stayed; and

   -- the right to transfer, encumber or otherwise dispose of any
      assets of the Bank is suspended.

The British recognition will facilitate the execution of the
Bank's restructuring plan, which relates to approximately
US$4.5 billion (KZT677 billion) of the Bank's financial
indebtedness.

Based in Almaty, Kazakhstan, Alliance Bank OA (LI:ALLB) --
http://www.alb.kz/-- a.k.a. Alliance Bank JSC, is a commercial
bank.  As at December 31, 2007, Alliance had 24 branches and 199
mini-branches in the Republic of Kazakhstan.  The Bank is
organized on the basis of three main segments: Retail banking,
which represents private banking services, private customer
current accounts, savings, deposits, investment savings products,
custody, credit and debit cards, consumer loans and mortgages;
Corporate banking, which represents direct debit facilities,
current accounts, deposits, overdrafts, loan and other credit
facilities, foreign currency and derivative products, and
Investment banking, which represents financial instruments
trading, structured financing, corporate leasing, and merger and
acquisitions advice.


ARCH STROY: Creditors Must File Claims by December 30
-----------------------------------------------------
Creditors of LLP Arch Stroy Project 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 6, 2009.


ASEM AI: Creditors Must File Claims by December 30
--------------------------------------------------
LLP Asem Ai Group Distribution is currently undergoing
liquidation.  Creditors have until December 30, 2009, to submit
proofs of claim to:

         Kirpichnaya Str. 7
         Boraldai
         Ilyisky District
         Almaty
         Kazakhstan


BTA BANK: Expects to Return to Profitability in 2011
----------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that BTA Bank expects
to return to profit in 2011.

According to Bloomberg, BTA Chief Executive Officer Anvar Saidenov
said the bank expects an "insignificant loss" next year, while
reducing loan provisions by 10%.

As reported by the Troubled Company Reporter-Europe on Dec. 23,
2009, Bloomberg News, citing Kazakhstan's Financial Supervision
Agency, said that BTA's net loss widened to KZT2.06 trillion
(US$13.9 billion) this year.

Bloomberg relates the bank said it plans to cut its US$11.6
billion of principle debt to US$4.56 billion after paying US$1
billion in cash and giving recovery notes and a 15% equity stake
to creditors.  Bloomberg recalls the financial regulator said this
month Kazakhstan ordered BTA to get creditors' approval to
restructure the debt before March 23.

Mr. Saidenov, as cited by Bloomberg, said the bank's loss would
narrow to KZT1.1 trillion after the restructuring.

The 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.

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.


BTA BANK: Restructuring Recognized in Great Britain
---------------------------------------------------
The restructuring proceedings that have been commenced in respect
of JSC BTA Bank before the Specialised Financial Court in Almaty
have been recognized in Great Britain as a foreign main
proceeding.  This recognition was granted by order of the High
Court of Justice of England and Wales on December 18, 2009
pursuant to the UNCITRAL Model Law on cross-border insolvency as
set out in the Cross Border Insolvency Regulations 2006.

The consequences of obtaining this recognition are that, in Great
Britain:

    * commencement or continuation of individual actions or
      individual proceedings concerning the Bank's assets, rights,
      obligations or liabilities is stayed;

    * execution against the Bank's assets is stayed; and

    * the right to transfer, encumber or otherwise dispose of any
      assets of the Bank is suspended.

The British recognition will facilitate the execution of the
Bank's restructuring plan, which relates to approximately
US$12 billion (KZT 1,8 trillion) of the Bank's financial
indebtedness.

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.


COMPLECT LLP: Creditors Must File Claims by December 30
-------------------------------------------------------
LLP Almaty Electro Service Complect is currently undergoing
liquidation.  Creditors have until December 30, 2009, to submit
proofs of claim to:

         Micro District 1, 58-37
         Almaty
         Kazakhstan


CONSTANTA ELECTRONICS: Creditors Must File Claims by December 30
----------------------------------------------------------------
LLP Constanta Electronics is currently undergoing liquidation.
Creditors have until December 30, 2009, to submit proofs of claim
to:

         Micro District Koktem-3, 6-4
         Bostandyksky District
         Almaty
         Kazakhstan


D OIL: Creditors Must File Claims by December 30
------------------------------------------------
LLP D oil is currently undergoing liquidation.  Creditors have
until December 30, 2009, to submit proofs of claim to:

         Abai Str. 10-2
         Jezkazgan
         Kazakhstan


FOOD CONTRACT: Moody's Assigns (P)Ba3 Rating on Senior Bonds
------------------------------------------------------------
Moody's Investors Service has assigned a (P)Ba3 rating to the
KZT15 billion senior unsecured bonds JSC National Company Food
Contract Corporation is planning to issue.

Moody's (P)Ba3 rating on the proposed bond issue, at the same
level of the CFR, is based on Moody's understanding that while the
bonds will not benefit from a guarantee from the issuer's
subsidiaries, no debt class currently benefits from guarantees or
liens on the assets of FCC and its subsidiaries.  Should FCC's
subsidiaries issue debt or should the company grant liens on its
assets to certain categories of creditors, ratings on the bonds
could be lowered.  Moody's is also not aware of a negative pledge
clause protecting bondholders from subordination.

Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the transaction only.  Upon a conclusive review
of the final documentation, Moody's will endeavor to assign a
definitive rating to the notes.  A definitive rating may differ
from a provisional rating.

The last rating action was implemented on December 21, 2009, when
Moody's downgraded to Ba3 from Ba1 the corporate family rating of
FCC.  The outlook on FCC's ratings was changed to stable.

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.


KAZ ROSS: Creditors Must File Claims by December 30
---------------------------------------------------
LLP Kaz Ross Soft is currently undergoing liquidation. Creditors
have until December 30, 2009, to submit proofs of claim to:

         Respublika Ave. 166
         Astana
         Kazakhstan


LAD COMPANY: Creditors Must File Claims by December 30
------------------------------------------------------
Creditors of LLP Lad Company have until December 30, 2009, to
submit proofs of claim to:

         Ilyaev Str. 24
         Shymkent
         South Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of South Kazakhstan
commenced bankruptcy proceedings against the company on
September 28, 2009, after finding it insolvent.

The Court is located at:

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


MEGA STROY: Creditors Must File Claims by December 30
-----------------------------------------------------
LLP Mega Stroy + is currently undergoing liquidation.  Creditors
have until December 30, 2009, to submit proofs of claim to:

         Rozybakiev Str. 247a
         Almaty
         Kazakhstan


NS TECHNO: Creditors Must File Claims by December 30
----------------------------------------------------
LLP NS Techno Service is currently undergoing liquidation.
Creditors have until December 30, 2009, to submit proofs of claim
to:

         Navoyi Str. 310a-15
         Almaty
         Kazakhstan


NSK LLP: Creditors Must File Claims by December 30
--------------------------------------------------
Creditors of LLP Stroy Group NSK have until December 30, 2009, to
submit proofs of claim to:

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

The court commenced bankruptcy proceedings against the company on
October 12, 2009.


OIL TANKERS: Creditors Must File Claims by December 30
------------------------------------------------------
Creditors of LLP Oil Tankers have until December 30, 2009, to
submit proofs of claim to:

         Tole Bi Str. 295
         Almaty
         Kazakhstan

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

The Court is located at:

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


PRIISHYMYE LLP: Creditors Must File Claims by December 30
---------------------------------------------------------
Creditors of LLP Joint Enterprise Agro Service Priishymye have
until December 30, 2009, to submit proofs of claim to:

         308 Krasnoznamenny Polk Str. 37
         Petropavlovsk
         North Kazakhstan
         Kazakhstan

The Specialized Inter-Regional Economic Court of North Kazakhstan
commenced bankruptcy proceedings against the company on October 1,
2009, after finding it insolvent.
The Court is located at:

         The Specialized Inter-Regional
         Economic Court of North Kazakhstan
         Brusilovsky Str. 60
         Petropavlovsk
         North Kazakhstan
         Kazakhstan


R-AUTO LLP: Creditors Must File Claims by December 30
-----------------------------------------------------
Creditors of LLP R-Auto have until December 30, 2009, to submit
proofs of claim to:

         Tereshkov Str. 10
         Otenai
         Taldykorgan
         Kazakhstan

The Specialized Inter-Regional Economic Court of Taldykorgan
commenced bankruptcy proceedings against the company on
September 28, 2009, after finding it insolvent.

The Court is located at:

         The Specialized Inter-Regional
         Economic Court of Taldykorgan
         Tauelsyzdyk Str. 53
         Taldykorgan
         Kazakhstan


SATPAY SU: Creditors Must File Claims by December 30
----------------------------------------------------
Creditors of LLP Satpay Su have until December 30, 2009, to submit
proofs of claim to:

         Jambyl Str. 9
         Karaganda
         Kazakhstan

The Specialized Inter-Regional Economic Court of Karaganda
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 Karaganda
         Alalykin Str. 9
         Karaganda
         Kazakhstan


SHYGYS STROY: Creditors Must File Claims by December 30
-------------------------------------------------------
LLP Shygys Stroy Market is currently undergoing liquidation.
Creditors have until December 30, 2009, to submit proofs of claim
to:

         Ryskulov Str. 194/1-30
         Aktobe
         Kazakhstan


STAL KANAT: Creditors Must File Claims by December 30
-----------------------------------------------------
Creditors of LLP Stal Kanat have until December 30, 2009, to
submit proofs of claim to:

         Rayimbek Ave. 241g-12
         Almaty
         Kazakhstan

The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 23, 2009,
after finding it insolvent.

The Court is located at:

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


TANDEM-4 LLP: Creditors Must File Claims by December 30
-------------------------------------------------------
Creditors of LLP Tandem-4 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


TECHNOCOM II: Creditors Must File Claims by December 30
-------------------------------------------------------
Creditors of LLP Technocom II have until December 30, 2009, to
submit proofs of claim to:

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

The court commenced bankruptcy proceedings against the company on
September 23, 2009.


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


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

         Ujny Side Street 25
         Leninskoye
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 44-60-60


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


GELDILUX-TS-2007 SA: S&P Cuts Rating on Class E Notes to 'B-'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on Geldilux-TS-2007 S.A.'s
class A to E notes.

The downgrades follow the announcement that the planned
restructuring of Geldilux-TS-2007 S.A. by the originator,
Bayerische Hypo- und Vereinsbank AG (A/Stable/A-1), will not
occur.  S&P has therefore reviewed the transaction on the basis of
the most recent portfolio information (including loan-level data)
made available to us.

The updated analysis reflects S&P's revised view of the refinance
risk prevalent in the portfolio.  This refinance risk is of
relevance in a delinked rating approach, as originally applied to
the class A notes.  According to S&P's analysis, the enhancement
available to the class A notes is insufficient, in S&P's opinion,
to withstand the projected losses under the 'AAA' rating stress,
i.e., including losses due to refinancing problems.  Therefore,
S&P has weak-linked the rating on the class A notes to HVB's
senior unsecured rating.  Consequently, S&P has lowered the rating
on the class A notes to 'A'.  S&P believes that the enhancement
available to the class A notes is sufficient to absorb the
expected losses in a 'A' rating stress.

S&P has lowered the ratings on the class B to E notes as a result
of portfolio migration in the underlying asset portfolio and S&P's
updated assessments of expected defaults at all rating levels.

Over the past year S&P has observed a slight increase of the
weighted-average internal probability of default.  This has led to
an increased assumption for expected losses at all rating levels.
Furthermore, S&P applied additional stresses to address the
absence of any structural mechanism that would prevent further
migration of the average portfolio credit quality] during the
replenishment period of deal.  S&P has only applied the additional
stress to investment-grade rating levels.

In comparison with its peer transaction, Geldilux-TS 2008-1 S.A.,
the Geldilux-TS 2007-1 deal does not benefit from further note
issuance and increased enhancement levels.  Therefore, on a
relative basis, Geldilux-TS 2007-1 is now rated lower than
Geldilux-TX 2008-1, even though their asset pools are identical.

HVB originated the transaction.  The securitized assets are short-
term loans granted to preferred clients from various business
segments.  The majority of the borrowers are small and midsize
enterprises.  The loans have a maximum maturity of 368 days and
feature a bullet repayment.  These loans are products under the
framework of a client's working capital facility or term facility
that HVB offers.  The securitization features a covenant that caps
the weighted-average life of the pool during replenishment at 90
days.

                          Ratings List

      Ratings Lowered and Removed From CreditWatch Negative

                      Geldilux-TS-2007 S.A.
       EUR2.104 Billion Credit-Linked Floating-Rate Notes

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


ORCO PROPERTY: KB Cuts Price Estimate Over Debt Restructuring Woes
------------------------------------------------------------------
Krystof Chamonikolas at Bloomberg News reports that Orco Property
Group SA extended losses and fell to the lowest level in almost
five months as Komercni Banka AS cut its target price for the
developer in central Europe, citing a lack of debt restructuring.

Bloomberg relates KB, the Czech unit of Societe Generale SA, said
in a research note released Dec. 22 the company's 12-month price
estimate was cut to EUR5 (CZK131.6 at the current rate) from
EUR5.3.

The company, which has been under protection from creditors since
March, displays a "minimum effort to strike a deal with
bondholders," KB analyst Miroslav Adamkovic said, according to
Bloomberg.  "The company's cash flow remains limited by low
liquidity in the market."

Bloomberg notes KB left its recommendation for Orco at "sell."

Orco Property Group SA -- http://www.orcogroup.com/-- is a
Luxembourg-based real estate company, specializing in the
development, rental and management of properties in Central and
Eastern Europe.  Through its fully consolidated subsidiaries, Orco
Property Group SA operates in several countries, including the
Czech Republic, Slovakia, Germany, Hungary, Poland, Croatia and
Russia.  The Company rents and manages real estate and hotels
properties composed of office buildings, apartments with services,
luxury hotels and hotel residences; it also develops real estate
projects as promoter.


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


ADAGIO CLO: Moody's Cuts Ratings on Three Classes of Notes to 'B3'
------------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Adagio CLO I B.V.

  -- EUR200M Class A-1 Senior Floating Rate Notes due 2019 Bond,
     Downgraded to Aa1; previously on Nov 9, 2004 Definitive
     Rating Assigned Aaa

  -- EUR4.8M Class B-1 Senior Floating Rate Notes due 2019 Bond,
     Downgraded to Baa2; previously on Mar 4, 2009 Aa2 Placed
     Under Review for Possible Downgrade

  -- EUR21.2M Class B-2 Senior Fixed Rate Notes due 2019 Bond,
     Downgraded to Baa2; previously on Mar 4, 2009 Aa2 Placed
     Under Review for Possible Downgrade

  -- EUR13.5M Class C Senior Subordinated Deferrable Floating Rate
     Notes due 2019 Bond, Downgraded to Ba3; previously on Mar 13,
     2009 Downgraded to Baa3 and Remained On Review for Possible
     Downgrade

  -- EUR14.55M Class D-1 Senior Subordinated Deferrable Floating
     Rate Notes due 2019 Bond, Downgraded to B3; previously on Mar
     13, 2009 Downgraded to Ba3 and Remained On Review for
     Possible Downgrade

  -- EUR7M Class A-2 Senior Fixed Rate Notes due 2019 Bond,
     Downgraded to Aa1; previously on Nov 9, 2004 Assigned Aaa

  -- EUR1.7M Class D-2 Senior Subordinated Deferrable Fixed Rate
     Notes due 2019 Bond, Downgraded to B3; previously on Mar 13,
     2009 Downgraded to Ba3 and Remained On Review for Possible
     Downgrade

  -- EUR4.5M Class S Combination Notes due 2019 Bond, Downgraded
     to B3; previously on Nov 9, 2004 Assigned Ba1

This transaction is a managed cash collateralized loan obligation
with exposure to predominantly European senior secured loans, as
well as some mezzanine loan exposure which represent 4.18% of the
collateral assets.

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 slight credit deterioration of the underlying
portfolio.  This is observed through the portfolio weighted
average rating factor 'WARF' (currently 2484), the amount of
defaulted securities (currently 2.2% of the portfolio), the
proportion of securities from issuers rated Caa1 and below
(currently 6.7% of the portfolio), and a slight deterioration of
the par value tests.  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.  Due to the impact of
all the aforementioned stresses, key model inputs used by Moody's
in its analysis, such as par, weighted average rating factor, and
weighted average recovery rate, may be different from trustee's
reported numbers.

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


ARES EURO: Moody's Does Not Take Rating Actions on Notes
--------------------------------------------------------
Moody's Investors Service has determined that the ratings
currently assigned to Ares Euro CLO I 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 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, 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
December 22, 2009 when the Aaa ratings of the Class A-2 Senior
Secured Floating Rate Notes was downgraded to Aa3 and that of the
Class A-3 Senior Secured Floating Rate Notes to Aa1; the Aa2
ratings of the Class B-1 and the Class B-2 Senior Secured
Deferrable Floating Rate Notes were downgraded to Baa1; the Aa2 of
the Class B-2 Senior Secured Deferrable Fixed Rate Notes; the
Class C Senior Secured Deferrable Floating Rate Notes were
downgraded to Ba1; the Class D Senior Secured Deferrable Floating
Rate Notes were downgraded to B3; and the Class Q Combination
Notes were downgraded to Ba1 from Baa1.  On the same date the
Class E Senior Secured Deferrable Floating Rate Notes and the
Class F Senior Secured Deferrable Floating Rate Notes each had
their ratings confirmed at Caa1 and Caa3 respectively.  No action
was taken on any other class of notes.

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

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 2697), an increase in the amount of defaulted
securities (currently 4% of the portfolio), and an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 9% of the portfolio).  These measures were taken from
the recent trustee report dated November 3, 2009.  Moody's also
performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality.  Due
to the impact of all the below mentioned stresses, key model
inputs used by Moody's in its analysis, such as par, weighted
average rating factor, and weighted average recovery rate, may be
different from trustee's reported numbers.

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


HALCYON STRUCTURED: Moody's Cuts Rating on Class E Notes to 'Caa2'
------------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Halcyon Structured Asset Management European CLO 2007-I
B.V.  The Class A-1 and the Variable Funding Notes remain Aaa
mainly due to the current over collateralization.

  -- EUR90,000,000 Class A2 Senior Secured Floating Rate Notes due
     2023, Downgraded to Aa1; previously on March 4, 2009 Aaa
     Placed under Review for Possible Downgrade;

  -- EUR51,000,000 Class B Deferrable Secured Floating Rate Notes
     due 2023, Downgraded to A3; previously on March 4, 2009 Aa2
     Placed under Review for Possible Downgrade;

  -- EUR36,000,000 Class C Deferrable Secured Floating Rate Notes
     due 2023, Downgraded to Ba1; previously on March 18, 2009
     Downgraded to Baa3 and Placed under Review for Possible
     Downgrade;

  -- EUR37,500,000 Class D Deferrable Secured Floating Rate Notes
     due 2023, Downgraded to B2; previously on March 18, 2009
     Downgraded to B1 and Placed under Review for Possible
     Downgrade;

  -- EUR22,500,000 Class E Deferrable Secured Floating Rate Notes
     due 2023, Downgraded to Caa2; previously on March 18, 2009
     Downgraded to Caa1 and Placed under Review for Possible
     Downgrade;

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

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 2728), an increase in the amount of defaulted
securities (currently 4.5% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 7.3% of the portfolio), and a failure of Class E
Overcollateralization Test.  These measures were taken from the
recent trustee report dated 30 October 2009.  Moody's also
performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality.  Due
to the impact of all the aforementioned stresses, key model inputs
used by Moody's in its analysis, such as par, weighted average
rating factor, and weighted average recovery rate, may be
different from trustee's reported numbers.

In addition to the quantitative factors that are explicitly
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.


LEOPARD CLO: Moody's Cuts Ratings on Two Classes of Notes to Caa2
-----------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Leopard CLO III B.V.

  -- EUR235,000,000 Class A1 Senior Secured Floating Rate Notes
     due 2020, Downgraded to Aa3; previously on April 7, 2005
     Assigned Aaa;

  -- EUR14,500,000 Class B Senior Secured Floating Rate Notes due
     2020, Downgraded to Baa2; previously on March 4, 2009 Aa2
     Placed under Review for Possible Downgrade;

  -- EUR18,000,000 Class C1 Senior Secured Deferrable Floating
     Rate Notes due 2020, Downgraded to Ba3; previously on
     March 19, 2009 Downgraded to Baa3 and Remained On Review for
     Possible Downgrade;

  -- EUR11,000,000 Class C2 Senior Secured Deferrable Fixed Rate
     Notes due 2020, Downgraded to Ba3; previously on March 19,
     2009 Downgraded to Baa3 and Remained On Review for Possible
     Downgrade;

  -- EUR16,250,000 Class D Senior Secured Deferrable Floating Rate
     Notes due 2020, Downgraded to Caa1; previously on March 19,
     2009 Downgraded to B1 and Remained On Review for Possible
     Downgrade;

  -- EUR6,250,000 Class E1 Senior Secured Deferrable Floating Rate
     Notes due 2020, Downgraded to Caa2; previously on March 19,
     2009 Downgraded to Caa1 and Remained On Review for Possible
     Downgrade;

  -- EUR4,000,000 Class E2 Senior Secured Deferrable Fixed Rate
     Notes due 2020, Downgraded to Caa2; previously on March 19,
     2009 Downgraded to Caa1 and Remained On Review for Possible
     Downgrade;

  -- EUR10,000,000 Class W Combination Notes due 2020, Downgraded
     to Ba2; previously on March 4, 2009 Baa1 Placed under Review
     for Possible Downgrade;

  -- EUR7,500,000 Class X Combination Notes due 2020, Downgraded
     to Ba2; previously on March 4, 2009 Baa1 Placed under Review
     for Possible Downgrade;

  -- EUR3,000,000 Class Y Combination Notes due 2020, Downgraded
     to B3; previously on March 4, 2009 Baa3 Placed under Review
     for Possible Downgrade;

  -- EUR4,000,000 Class Z Combination Notes due 2020, Downgraded
     to Ba2; previously on March 4, 2009 Baa1 Placed under Review
     for Possible Downgrade;

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

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 2528), an increase in the amount of defaulted
securities (currently 3.92% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 5.16% of the portfolio).  These measures were taken
from the recent trustee report dated 11 Nov 2009.  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.


===========
N O R W A Y
===========


PETROMENA ASA: Says Oslo Court to Open Bankruptcy Proceedings
-------------------------------------------------------------
Vibeke Laroi at Bloomberg News reports that Petromena ASA said the
Oslo County Court on Dec. 22 decided to open bankruptcy
proceedings against the company.

PetroMENA ASA -- http://www.petromena.no/-- is a Norway-based
company engaged in the ownership and operation of drilling rigs
and vessels, as well as in the construction of off-shore drilling
platforms and facilities for the oil industry.  The Company is
operational through its three wholly owned Singapore-based
subsidiaries: PetroRig I Pte Ltd, PetroRig II Pte Ltd and PetroRig
III Pte Ltd.  The Company's rigs are designed for drilling in
ultra deep waters, in such areas as the Mexican Gulf, Brazil, West
and South Africa, among others. Additionally, the Company's
subsidiaries are engaged in the construction of semi submersible
drilling rigs at the Jurong shipyard in Singapore.  As of
December 31, 2008, the Company held management and operational
agreements with Larsen Oil & Gas Ltd and Larsen Oil Gas AS.  The
Company's majority shareholder is Petrolia Drilling ASA, with
51.47% of its interests.


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


A&T INVEST: Creditors Must File Claims by December 30
-----------------------------------------------------
LLP Company A&T Invest is currently undergoing liquidation.
Creditors have until December 30, 2009, to submit proofs of claim
to:

         Bolysuly Str. 29
         Kulan
         Ryskulov District
         Jambyl
         Kazakhstan


AK TRANSNEFTEPRODUCT: S&P Changes Outlook to Stable From Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Russian oil product pipeline operator OJSC AK
Transnefteproduct to stable from negative.  The 'BB+' long-term
corporate credit and 'ruAA+' Russia national scale ratings were
affirmed.

"The outlook revision primarily reflects the outlook revision on
Transnefteproduct's parent, OAO AK Transneft (BBB/Stable/--),"
said Standard & Poor's credit analyst Andrey Nikolaev.

S&P also factor into the rating ongoing integration of the two
companies, notably the fact that Transnefteproduct substituted its
external debt with funds from Transneft and doesn't expect to
borrow externally in the future.  Finally, S&P takes into
consideration Transnefteproduct's healthy financial performance in
2009.

The ratings mainly reflect S&P's view of a relatively high
likelihood of support from Transneft.  The differential between
the ratings on Transnefteproduct and its parent Transneft is
explained by the incomplete, but increasing, integration of the
two companies and Transnefteproduct's weaker stand-alone credit
profile, which S&P assess as 'B+'.  Transneft's ability to support
Transnefteproduct is reflected in S&P's investment-grade rating on
Transneft.

S&P currently assess Transnefteproduct's stand-alone credit
profile at 'B+', reflecting S&P's opinion of the company's
business risk profile as "weak" and its financial risk profile as
"aggressive".  The business risk profile is constrained by
Transnefteproduct's position as a small (relative to its parent),
mainly commercial operator competing with other transportation
providers (notably rail operators).  Transnefteproduct's financial
risk profile reflects S&P's opinion of the company's improving
debt metrics and, at the same time, the likelihood of negative
free cash flows if, for example, the company were to embark on new
development projects, such as the "South" pipeline.

"The stable outlook mirrors that on Transneft, which in turn
reflects that on its principal shareholder, the Russian Federation
(foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2;
Russia national scale 'ruAAA')," said Mr. Nikolaev.

In the medium term, S&P cannot rule out a decrease in the
differential from two notches to one notch between the ratings on
Transnefteproduct and those on its parent, Transneft. A decreased
differential would depend on:

* Transnefteproduct's continued reliance on intragroup financing
  rather than external debt to finance its activities;

* A track record of further integration between the two companies;
  and

* A stronger stand-alone credit profile for Transnefteproduct.

A stronger stand-alone credit profile would depend on
Transnefteproduct's long-term investment ambitions and the
potential for sizable debt increases from the "South" pipeline
project.


FEDERAL GRID: S&P Changes Outlook to Stable; Affirms Corp. Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it revised to stable from
negative its outlook on the Federal Grid Co. of the Unified Energy
System, the 77.66% Russian state-owned electricity transmission
company.  The 'BBB' long-term corporate credit rating and 'ruAAA'
Russian national scale rating were affirmed.

The outlook revision reflects the outlook revision on FGC's major
owner, the Russian Federation (foreign currency BBB/Stable/A-3,
local currency BBB+/Stable/A-2)," said Standard & Poor's credit
analyst Sergei Gorin.  "The rating reflects Standard & Poor's
opinion that there is a "high" likelihood that the government
would provide timely and sufficient extraordinary support to the
company in the event of financial distress.  S&P assesses FGC's
stand-alone credit profile at 'BB+'.

S&P's view of a "high" likelihood of extraordinary government
support is based on S&P's assessment of FGC's:

* "Very important" role given the company's strategic importance
  to the government as a monopoly provider of essential
  infrastructure services; and

* "Strong" link with the Russian Federation, which owns 77.66% of
  its shares and controls the company's strategy and operations.

FGC's stand-alone credit profile reflects the company's monopoly
position as the electricity transmission grid owner and operator
in Russia.  It also factors in a strong ongoing support from the
Russian Federation in the form of capital injections.  In
addition, FGC has a supportive, but evolving, tariff regime and a
strong financial profile.

These strengths are counterbalanced by FGC's large medium-term
investment program, which relies heavily on external financing,
including the sale of equity stakes, and uncertainty regarding new
regulatory parameters for tariffs.  FGC is also exposed to further
deterioration in Russia's transitional economy.

The stable outlook reflects the outlook on the Russian Federation
and S&P's expectations that FGC will maintain its focus on its
monopoly transmission grid operations while continuing to benefit
from government support.  "We assume that the need for ongoing
support will gradually decrease if the transition to a regulatory
asset-base tariff regime proves beneficial to FGC's
creditworthiness on a stand-alone basis," said Mr. Gorin.


RENAISSANCE CAPITAL: S&P Cuts Counterparty Credit Rating to 'B'
---------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
counterparty credit rating on Russia-based Renaissance Capital
Holdings Ltd. to 'B' from 'B+'.  At the same time, S&P affirmed
its 'B' short-term rating.  The outlook is negative.

"The rating action reflects S&P's view that RCHL's financial
flexibility has reduced as a consequence of the squeezed cash flow
generation in the current difficult market conditions, as well as
its reduced access to cash flows from its subsidiaries because of
the group's recent ownership change," said Standard & Poor's
credit analyst Elena Romanova.

RCHL is a Bermuda-registered holding company that owns a 50% stake
in a complex group of companies with leading positions in Russia
in brokerage, investment banking, and advisory.  These various
entities are based in the U.K., the U.S., Cyprus, Russia, Ukraine,
Kazakhstan, and Africa.  S&P's ratings have been historically
based on the creditworthiness of RCHL and its subsidiaries (the
group).  However, in July 2009, RCHL completed the sale of a 50%
stake (minus 1/2 share) of its former 100% subsidiary Renaissance
Financial Holdings Ltd. (RFHL; not rated), which controls almost
all its investment banking business, to ONEXIM Group (not rated).
ONEXIM is one of Russia's largest private investment funds, with a
focus on mining, energy, real estate, and financial services.
This new ownership structure implies that RCHL's access to cash
flows from the various operating entities has reduced and is less
predictable than in the past.

RCHL's business contracted two-fold from June 30, 2008, to
Sept. 30, 2009, while profits dropped by more than 70%, due to
deteriorated financial markets.  Equity sales and trading and
brokerage services provide more than 80% of the group's operating
revenues, highlighting revenue concentration.  The liquidity
position of the group has normalized and capitalization has
strengthened following a US$500 million capital injection by
Onexim into RFHL in October 2008.  This ownership change reduced
RCHL's access to cash generated by the group's operating entities
and consequently its ability to service its debt.  In 2010, RCHL
has to repay over US$50 million of non-related-party debt.  On a
positive note, a recent US$150 million exceptional dividend was
paid to Onexim and RCHL (on pro-rata basis).  The latter will use
these funds to repay debt to related companies beyond the
consolidated scope of RCHL.

"The negative outlook reflects S&P's expectations that RCHL's
business and financial profile will continue to be pressurized by
the deteriorated operating environment," said Ms. Romanova.  "S&P
expects financial markets to remain subdued in the foreseeable
future, which should continue to constrain the company's business
development and revenue flows."

S&P could take a negative rating action if the group's financial
performance weakened materially or if RCHL's liquidity position
deteriorated significantly.  An outlook revision to stable would
require a marked improvement of the operating environment and
demonstration that the group's performance allows a satisfactory
upstream of dividends and cash to RCHL.


RUSSIAN CORPORATION: S&P Keeps B Short-Term Issuer Credit Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB+' long-term and 'B' short-term issuer credit ratings, and its
'ruAA+' Russia national scale rating on the Russian Corporation of
Nanotechnologies, a state investment institution established by
the government of the Russian Federation (foreign currency
BBB/Stable/A-3; local currency BBB+/Stable/A-2; Russia national
scale 'ruAAA').  The outlook remains negative.

"In spite of the recent government decision to soon change
RusNano's legal status from a state corporation to a joint-stock
company, S&P still believes there is a "strong likelihood" that it
would receive timely, extraordinary support from the state in case
of financial distress," said Standard & Poor's credit analyst
Boris Kopeykin.

The ratings on RusNano are therefore higher than its stand-alone
credit profile, which -- not taking into account such expected
support -- S&P assesses in the 'B' category.  This view is
supported by the government's decision in October 2009 to increase
RusNano's capital gradually in 2010-2012, returning the full
amount withdrawn in 2009, and to provide government guarantees on
RusNano's direct debt in 2010-2015.

The difference between the actual rating and rating on Russia
reflects the remaining uncertainty about the form that the
financial relationship with the state will take in the medium to
long term, given both the unclear consequences for the financial
relationship and the government's involvement in the company
following the change in its legal status.

The government created RusNano to support state policy in the area
of nanotechnologies.  The corporation is supposed to invest in
projects that apply nanotechnologies and promote such investments
in the market.

RusNano has sound liquidity at present, in S&P's opinion.

"The negative outlook reflects remaining uncertainty regarding the
future relationship with the state, and the sustainability of the
applied business model," said Mr. Kopeykin.  "S&P will review the
probability of the extraordinary government support to RusNano in
the next several months."

Reaffirmation of the government's strong ongoing support to the
company, and of the availability of extraordinary support to the
company in an emergency, when combined with an improving stand-
alone credit profile, might result in S&P's revising the outlook
to stable.

In contrast, a downgrade might result if S&P observes signs of
weakening ongoing and/or extraordinary support, especially when
combined with riskier financial and investment policies, including
the issuance of guarantees to risky start-up projects, large
borrowings, and a deteriorating liquidity position.


RUSSIAN RAILWAYS: S&P Gives Stable Outlook; Affirms Issuer Ratings
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised the
outlook on the Russian state railroad company Russian Railways
(JSC) to stable from negative.  At the same time, the 'BBB' long-
term corporate credit and 'ruAAA' Russia national scale ratings
were affirmed.  All the issue ratings were also affirmed.

"The outlook revision follows the similar rating action on RZD's
sole owner, the Russian Federation (foreign currency BBB/Stable/A-
3; local currency BBB+/Stable/A-2; Russia national scale
'ruAAA')," said Standard & Poor's credit analyst Alexandre de
Lestrange.

S&P analyze RZD using its criteria for government-related
entities.  The rating on RZD reflects S&P's opinion that the
likelihood of timely and sufficient extraordinary government
support is "extremely high".  S&P consider RZD's role to be
"critical" for the government and the link between RZD and the
government to be "very strong".  S&P assess RZD's stand-alone
credit profile at 'BB+'.

The ratings on RZD also reflect the company's monopoly status as a
national railroad infrastructure owner and operator, the strong
competitiveness of freight railroad transport in Russia, and the
company's domination of the national freight railroad market.  In
S&P's view, RZD benefits from strong ongoing state support--in the
form of subsidies to offset lower-than-expected tariff increases,
subsidies to passenger transportation, equity injections for the
cofinancing of major investment projects, and the government's
inclusion of infrastructure development in measures to stimulate
the national economy.

These strengths are offset, in S&P's view, by RZD's exposure to
the Russian commodity-based and export-oriented economy; lower
profitability and cash flow generation as a result of decreasing
freight traffic; high funding requirements due to negative free
operating cash flow (before proceeds from equity injections and
any asset sales) in the foreseeable future and refinancing needs;
a "significant" financial profile and dependency on government
financial support; and restructuring and competition risk stemming
from the ongoing railway reform, although S&P expects little to no
competition in the network infrastructure.

The stable outlook reflects that on the sovereign.

"We expect that RZD will continue to benefit from strong
government support as well as retaining the benefits of the
vertical integration of its infrastructure and freight carrier
operations," said Mr. de Lestrange.

RZD's stand-alone credit profile might weaken if freight traffic
declines further or tariff growth is lower than S&P currently
expects, prospects that are unclear to us at this point and depend
on the length and depth of weak economic conditions in Russia.
However, because RZD is a GRE, S&P would not lower the ratings as
long as: the stand-alone credit profile remains in the 'BB'
category; the likelihood of timely and sufficient extraordinary
government support remains "extremely high"; and the rating on the
Russian Federation remains in the 'BBB' category.

S&P would likely revise the outlook on RZD to negative if S&P
revise S&P's outlook on the Russian Federation to negative.  Given
S&P's approach to rating the company and the current ratings and
rating on the Russian Federation, S&P view that rating upside for
RZD is limited in the medium term.


VNESHECONOMBANK: S&P Changes Outlook to Stable From Negative
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Russian Vnesheconombank (VEB) to stable from negative,
following a similar rating action on the Russian Federation
(foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2;
Russia national scale 'ruAAA').  At the same time, the 'BBB/A-3'
long- and short-term foreign currency ratings and the 'BBB+/A-2'
long- and short-term local currency ratings were affirmed.

At the same time, S&P revised its outlook on VEB's 100% subsidiary
Russian Bank for Development to stable from negative and affirmed
the 'BBB/A-3' long- and short-term foreign currency ratings and
the 'BBB+/A-2' long- and short-term local currency ratings.

"The ratings on VEB are the same as those on the Russian
Federation, reflecting an "almost certain" likelihood that the
Russian government would provide timely and sufficient
extraordinary support to VEB if necessary," said Standard & Poor's
credit analyst Felix Ejgel.

In accordance with S&P's criteria for government-related entities,
its view of an "almost certain" likelihood of extraordinary
government support is based on S&P's assessment of VEB's:

"Critical" role as the official financing arm for large public
infrastructure projects, underscored by the institution's new
mandate to stabilize the Russian banking system during the global
economic crisis; and

"Integral" link with the Russian Federation, because the
prominence of its board members, its 100% state ownership, and
Russia's institutional settings make it the most important
instrument for directed lending.

Due to this support, S&P rate VEB higher than its stand-alone
credit profile would suggest.  S&P assess VEB's stand-alone credit
profile at 'BB-', reflecting the corporation's concentration in
troubled metallurgy, machinery, defense, and construction sectors.
Strong ongoing support in the form of regular capital and
liquidity injections from both the government and the central
bank, coupled with tight supervision from the federal government,
support VEB's role as the state's preeminent development
institution.

De facto, VEB provides most loans following a decision by the
Russian government, whose lending to commercial entities is
severely restricted by the Budget Code.  VEB remains almost the
only source of long-term bank funding to complex projects in
machinery and other strategic sectors.

VEB has a proven track record of ongoing support from the
government in the form of regular capital injections from the
federal budget and guarantees on some of its loans.

Risks emanating from directed lending remain a factor affecting
VEB's asset quality.

The stable outlook on VEB mirrors that on the Russian Federation.

"Future rating actions on VEB will likely follow those on the
Russian Federation, assuming that the institution's fundamentals
and public policy functions are maintained," said Mr. Ejgel.

Diminishing government support or a radical change to VEB's
mandate could create a differential between the ratings on VEB and
those on the Russian Federation.  VEB's stand-alone credit profile
could also vary, depending on the health of its key lending
sectors.


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


AIR COMET: Shuts Down Operations Over Unpaid Bills
--------------------------------------------------
NewKerala reports that Spanish airline Air Comet on Dec. 21 said
it was shutting down after a British judge ordered its fleet of
leased aircraft impounded amid a pile of unpaid bills.

According to the report, Air Comet will soon ask permission from
the Spanish government to dismiss all of its roughly 700
employees, but the airline, which owes creditors an estimated
EUR100 million  (US$143 million), will wait until Jan 24 to seek
bankruptcy protection from the courts.

Air Comet is a low-cost carrier that flies between Spain and
several Latin American countries.


BANKINTER 2: S&P Downgrades Rating on Class E Notes to 'D'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class B, C, and D notes issued by Bankinter 3 FTPYME, Fondo de
Titulizacion de Activos.  S&P also lowered to 'D' the class E
notes in Bankinter 2 PYME and Bankinter 3 FTPYME for missed
interest payment on the latest payment date.  S&P also removed
classes C and D from CreditWatch negative in both transactions.
At the same time, S&P affirmed all the other notes in both
transactions.

The rating actions follow S&P's review of the most recent
information on the transactions' performance.  S&P's analysis has
highlighted that the current level of credit support provided to
classes B, C, and D issued by Bankinter 3 is not sufficient to
maintain the current ratings.

Bankinter 2 and Bankinter 3 were issued in June 2006 and November
2007, respectively.  As of December 22, the current pools
represent 48% of the original balance in Bankinter 2, and 71% in
Bankinter 3.

In November 2009, the outstanding balance of delinquencies between
90 days and 18 months over the current balance of the pool
increased to 2.89% and 2.61%, in Bankinter 2 and Bankinter 3
respectively, from 1.13% and 0.95% in December 2008.  In the two
transactions, cumulative gross defaults (loans more than 18 months
in arrears) as a percentage of the initial collateral balance are
0.26%.  Although from very low levels, gross losses substantially
increased in the two transactions and both issuers drew on their
cash reserves during the latest payment date to cover for new
defaults in that period.  In both transactions, this led to missed
interest payments on the class E notes, issued at closing to fund
the cash reserve.  These notes are not backed by credit rights and
are repaid with excess spread after the replenishment of the cash
reserve.

Bankinter 2 and Bankinter 3's pools show high concentrations in
industry and region.  The real estate and construction sectors
represent 50.20% and 43.89%, respectively.  At the same time,
loans granted in the Madrid region account for 30.24% in Bankinter
2 and 29.03% in Bankinter 3.

S&P review its assumptions on default rate and expected losses on
the basis of the composition of the asset pools backing the
transactions and asset performance patterns.  S&P's analysis
showed that the enhancement available to Bankinter 3's class B, C,
and D notes was not sufficient to maintain the current ratings.
S&P affirmed its ratings on classes A2, B, C, and D in Bankinter
2, as the notes benefit from a considerable increase in credit
enhancement due to leveraging.

                          Ratings List

       Ratings Lowered and Removed From Creditwatch Negative

       Bankinter 3 FTPYME, Fondo de Titulizacion de Activos
         EUR617.4 Million Asset-Backed Floating-Rate Notes

                                 Rating
                                 ------
       Class             To                   From
       -----             --                   ----
       C                 BB+                  BBB/Watch Neg
       D                 B                    BB-/Watch Neg

                         Ratings Lowered

        Bankinter 2 PYME, Fondo de Titulizacion de Activos
          EUR800 Million Asset-Backed Floating-Rate Notes

                                     Rating
                                     ------
           Class             To                   From
           -----             --                   ----
           E                 D                    CCC-

       Bankinter 3 FTPYME, Fondo de Titulizacion de Activos
         EUR617.4 Million Asset-Backed Floating-Rate Notes

                                     Rating
                                     ------
           Class             To                   From
           -----             --                   ----
           B                 A+                   AA-
           E                 D                    CCC-

      Ratings Removed From Creditwatch Negative And Affirmed

       Bankinter 2 PYME, Fondo de Titulizacion de Activos
         EUR800 Million Asset-Backed Floating-Rate Notes

                                 Rating
                                 ------
       Class             To                   From
       -----             --                   ----
       C                 BBB                  BBB/Watch Neg
       D                 BB                   BB/Watch Neg

                         Ratings Affirmed

       Bankinter 2 PYME, Fondo de Titulizacion de Activos
         EUR800 Million Asset-Backed Floating-Rate Notes

                    Class             Rating
                    -----             ------
                    A2                AAA
                    B                 A+

       Bankinter 3 FTPYME, Fondo de Titulizacion de Activos
         EUR617.4 Million Asset-Backed Floating-Rate Notes

                    Class             Rating
                    -----             ------
                    A1                AAA
                    A2                AAA
                    A3(G)             AAA


BANKINTER 3: S&P Downgrades Rating on Class E Notes to 'D'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class B, C, and D notes issued by Bankinter 3 FTPYME, Fondo de
Titulizacion de Activos.  S&P also lowered to 'D' the class E
notes in Bankinter 2 PYME and Bankinter 3 FTPYME for missed
interest payment on the latest payment date.  S&P also removed
classes C and D from CreditWatch negative in both transactions.
At the same time, S&P affirmed all the other notes in both
transactions.

The rating actions follow S&P's review of the most recent
information on the transactions' performance.  S&P's analysis has
highlighted that the current level of credit support provided to
classes B, C, and D issued by Bankinter 3 is not sufficient to
maintain the current ratings.

Bankinter 2 and Bankinter 3 were issued in June 2006 and November
2007, respectively.  As of December 22, the current pools
represent 48% of the original balance in Bankinter 2, and 71% in
Bankinter 3.

In November 2009, the outstanding balance of delinquencies between
90 days and 18 months over the current balance of the pool
increased to 2.89% and 2.61%, in Bankinter 2 and Bankinter 3
respectively, from 1.13% and 0.95% in December 2008.  In the two
transactions, cumulative gross defaults (loans more than 18 months
in arrears) as a percentage of the initial collateral balance are
0.26%.  Although from very low levels, gross losses substantially
increased in the two transactions and both issuers drew on their
cash reserves during the latest payment date to cover for new
defaults in that period.  In both transactions, this led to missed
interest payments on the class E notes, issued at closing to fund
the cash reserve.  These notes are not backed by credit rights and
are repaid with excess spread after the replenishment of the cash
reserve.

Bankinter 2 and Bankinter 3's pools show high concentrations in
industry and region.  The real estate and construction sectors
represent 50.20% and 43.89%, respectively.  At the same time,
loans granted in the Madrid region account for 30.24% in Bankinter
2 and 29.03% in Bankinter 3.

S&P review its assumptions on default rate and expected losses on
the basis of the composition of the asset pools backing the
transactions and asset performance patterns.  S&P's analysis
showed that the enhancement available to Bankinter 3's class B, C,
and D notes was not sufficient to maintain the current ratings.
S&P affirmed its ratings on classes A2, B, C, and D in Bankinter
2, as the notes benefit from a considerable increase in credit
enhancement due to leveraging.

                          Ratings List

       Ratings Lowered and Removed From Creditwatch Negative

       Bankinter 3 FTPYME, Fondo de Titulizacion de Activos
         EUR617.4 Million Asset-Backed Floating-Rate Notes

                                 Rating
                                 ------
       Class             To                   From
       -----             --                   ----
       C                 BB+                  BBB/Watch Neg
       D                 B                    BB-/Watch Neg

                         Ratings Lowered

        Bankinter 2 PYME, Fondo de Titulizacion de Activos
          EUR800 Million Asset-Backed Floating-Rate Notes

                                     Rating
                                     ------
           Class             To                   From
           -----             --                   ----
           E                 D                    CCC-

       Bankinter 3 FTPYME, Fondo de Titulizacion de Activos
         EUR617.4 Million Asset-Backed Floating-Rate Notes

                                     Rating
                                     ------
           Class             To                   From
           -----             --                   ----
           B                 A+                   AA-
           E                 D                    CCC-

      Ratings Removed From Creditwatch Negative And Affirmed

       Bankinter 2 PYME, Fondo de Titulizacion de Activos
         EUR800 Million Asset-Backed Floating-Rate Notes

                                 Rating
                                 ------
       Class             To                   From
       -----             --                   ----
       C                 BBB                  BBB/Watch Neg
       D                 BB                   BB/Watch Neg

                         Ratings Affirmed

       Bankinter 2 PYME, Fondo de Titulizacion de Activos
         EUR800 Million Asset-Backed Floating-Rate Notes

                    Class             Rating
                    -----             ------
                    A2                AAA
                    B                 A+

       Bankinter 3 FTPYME, Fondo de Titulizacion de Activos
         EUR617.4 Million Asset-Backed Floating-Rate Notes

                    Class             Rating
                    -----             ------
                    A1                AAA
                    A2                AAA
                    A3(G)             AAA


BBVA CONSUMO: Moody's Reviews 'Ba2' Rating on Class C Notes
-----------------------------------------------------------
Moody's Investors Service has placed these notes issued by BBVA
Autos 2, FTA and BBVA Consumo 1, FTA on review for possible
downgrade:

BBVA Autos 2, FTA:

  -- Class A Notes, Aaa placed under review for possible
     downgrade; previously on 13 December 2005 assigned Aaa

  -- Class B Notes, Aa3 placed under review for possible
     downgrade; previously on 13 December 2005 assigned Aa3

  -- Class C Notes, A3 placed under review for possible downgrade;
     previously on 13 December 2005 assigned A3

BBVA Consumo 1, FTA:

  -- Class A Notes, Aaa, placed under review for possible
     downgrade; previously on 11 May 2006 assigned Aaa

  -- Class B Notes, A2, placed under review for possible
     downgrade; previously on 23 April 2009 downgraded to A2 from
     Aa3

  -- Class C Notes, Ba2, placed under review for possible
     downgrade; previously on 23 April 2009 downgraded to Ba2 from
     A2

The review was initiated following Moody's consideration of the
performance of the collateral to date and its deviation from
Moody's expectations.  Other factors that the rating agency
considered were the level of credit enhancement to absorb losses
and collateral composition, such as the geographic diversification
of borrowers.

The transactions have deviated from Moody's performance
expectations.  BBVA Autos 2 has reported artificial write-offs of
2.5% of the total securitized portfolio, corresponding to
approximately 83% of Moody's initial assumptions of 3.0% over the
life of the transaction.  While the current pool factor is 48.1%,
reported cumulative delinquencies of more than three months
overdue accounted for 5.3% of the total securitized portfolio in
November 2009.

BBVA Consumo 1, FTA reported a decrease in its reserve fund since
Moody's last review in April 2009.  It is now at 56.5% of its
target.  In the meantime, artificial write-offs have increased to
2.3% of the original balance plus replenishments.  The cumulative
delinquencies of more than three months overdue were at 4.6% of
the original balance plus replenishments as of November 2009.

The rating actions also reflect Moody's concern about the
continued weakening of the Spanish auto and consumer loan
portfolios, as well as Moody's negative sector outlook for Spanish
consumer ABS.  The negative outlook results from the weak macro-
economic environment in Spain, in particular the increasing
unemployment rate, which is expected to rise to approximately 20%
in 2010.

Moody's will reassess the cumulative default rate for the
remaining life of the transaction, the volatility and the recovery
rate, reflecting the collateral performance to date as well as the
future macro-economic environment.  Moody's will also request, if
not already available, updated data on cumulative defaults and
other pool characteristics such as geographic concentration,
origination vintage of the loans and product type.

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 transactions.  Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.  Moody's will continue
to monitor closely the above transactions.


EDT FTPYME: Moody's Junks Rating on Class C Notes From 'Ba2'
------------------------------------------------------------
Moody's Investors Service has downgraded these tranches in two
Banco Pastor SME securitization transactions:

Issuer EdT FTPYME Pastor 3:

  -- EUR15.4 million Class C: Downgraded to Caa1 from Ba2,
     previously on 26 June 2009 placed on review for downgrade

Issuer GC FTPYME Pastor 4:

  -- EUR256.6 million Class A2: Confirmed at Aaa, previously on 26
     June 2009 placed on review for downgrade

  -- EUR15.8 million Class B: Downgraded to A2 from Aa3,
     previously on 26 June 2009 placed on review for downgrade

  -- EUR15.7 million Class C: Downgraded to Ba2 from Baa1,
     previously on 26 June 2009 2009 placed on review for
     downgrade

  -- EUR18.9 million Class D: Downgraded to Caa2 from Ba3,
     previously on 26 June 2009 2009 placed on review for
     downgrade

  -- EUR12.6 million Class E: Downgraded to Caa3 from Caa1,
     previously on 26 June 2009 2009 placed on review for
     downgrade

The above rating actions were prompted by a greater-than-expected
increase in the level of delinquencies over the last year.  In EdT
FTPYME Pastor 3, the outstanding 90+ delinquencies (i.e.
delinquencies equal or greater than 90 days) as of October 2009
were equal to 10.44% of the portfolio current balance, a 217%
increase since July 2008, when the outstanding 90+ delinquencies
were equal to 4.79% of the portfolio current balance.  The reserve
fund started to be drawn in April 2009 and represents 82.4% of its
target amount as of last reporting date.  In GC FTPYME Pastor 4,
the outstanding 90+ delinquencies (i.e. delinquencies equal or
greater than 90 days) as of November 2009 were equal to 8.21% of
the current portfolio balance, an increase of 489% since June
2008, when the outstanding 90+ delinquencies equaled 1.68%.  The
reserve fund was first drawn in December 2008 and it never
recovered to its target level since then, reaching 71.8% of target
as of last reporting date.

As part of its review, Moody's has considered the exposure of the
transaction to the real estate sector (either through security in
the form of a mortgage or debtors operating in the real estate
sector).  The deterioration of the Spanish economy has been
reflected in the Moody's negative sector outlook on the Spanish
SME securitization transactions ("EMEA ABS, CMBS & RMBS Asset
Performance Outlooks", published in July 2009).

As a result of the above, Moody's has revised its assumption of
the default probability of the SME debtors to an equivalent rating
in the single B-range for the debtors operating in the real estate
sector, and in the low Ba-range for the non-real-estate debtors.
At the same time, Moody's estimated the remaining weighted-average
life of each specific pool.  As a consequence, these revised
assumptions have translated into an increase of the cumulative
mean default assumption for all these transactions.  Given the
relatively low effective number of borrowers in the portfolio
backing each transaction, the rating agency used a Monte-Carlo
simulation to determine the probability function of the defaults.

A brief description of the main points in each transaction
follows, along with Moody's original and revised inputs as part of
its review.

                       EDT FTPYME Pastor 3

As of October 2009, this transaction included 898 obligors, with
the largest debtor representing 3.85% of the outstanding
portfolio.  The concentration in the "building and real estate"
sector is approximately 48.37% according to Spanish CNAE code.
Moody's estimated the remaining weighted average life of the
portfolio to equal 3.8 years.  Revised assumptions have translated
into an increase of the cumulative mean default assumption for
this transaction to 29% of the current portfolio balance (which is
equivalent to a mean default of 17% of original portfolio balance)
mainly driven by the high concentration by debtor (Top 5 debtors
represent 14.96% of the pool).  Moody's had already revised its
assumption in September 2008 to a mean default of 9.0% of the then
pool balance (equivalent to 8.2% of original balance) and a
coefficient of variation of 45% whereas Moody's original mean
default assumption at closing was 4.35% of original balance, with
a coefficient of variation of 66%.  The effective number of
borrowers in the portfolio is around 115, and the coefficient of
variation is 28%.  The recovery rate assumption is now 50%, while
values in the 50% to 35% range were tested at closing.  The
proportion of the loans with a mortgage guarantee is 70% vs. 61%
at closing.  The revised constant prepayment rate assumption is
now 5%, while the CPR assumption was 15% at closing.

In summary, Moody's concluded that the negative effects of the
revised default assumptions were not fully offset by the increased
credit support available for the outstanding series C notes
(11.78% of reserve fund + xs spread guarantee by the swap).  The
rating of Class A1 notes was not affected as it benefits from the
increase in the credit enhancement outstanding (subordination of
the Class B and C, reserve fund and xs spread guarantee by the
swap) and the ratings of class A2(G) and B are fully linked to the
rating of Kingdom of Spain (Aaa) and European Investment Fund
(Aaa) respectively which guarantees principal and interest payment
on these notes.

                        GC FTPYME Pastor 4

As of October 2009, this transaction included 2,729 obligors with
the largest debtor representing 2.21% of the outstanding
portfolio.  The concentration in the "building and real estate"
sector is approximately 24.58% according to Spanish CNAE code.
Moody's estimated the remaining weighted average life of the
portfolio to be equal to 5.6 years.  Revised assumptions have
translated into an increase of the cumulative mean default
assumption for this transaction to 20% of the current portfolio
balance (which is equivalent to a mean default of 10% on original
portfolio balance).  Moody's had already revised its assumption in
September 2008 to a mean default of 10.5% of the then pool balance
(equivalent to 7.2% of original balance) and a coefficient of
variation of 45% whereas Moody's original mean default assumption
at closing was 4.04% of original portfolio balance, with a
coefficient of variation of 55%.  The effective number of
borrowers in the portfolio is around 317, and the coefficient of
variation is 34.7%.  The recovery rate assumption is now 45%,
while values in the 50% to 35% range were tested at closing.  The
proportion of the loans with a mortgage guarantee is 64% vs.  56%
at closing and the WALTV is 46.74%.  The revised CPR assumption is
now 5%, while the CPR assumption was 15% at closing.

In summary, Moody's concluded that the negative effects of the
revised default assumptions were offset by the increased credit
support available for the outstanding Class A2 notes but not fully
for series B, C, D and E notes.  The class Class A3(G) notes was
not placed on review for possible downgrade as it benefits from
the guarantee of the Kingdom of Spain (Aaa) for interest and
principal payments.

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
risks have not been addressed, but may have a significant effect
on yield to investors.

Moody's is closely monitoring the transaction.


FONCAIXA FTGENCAT: Moody's Cuts Rating on Class C Notes to 'Ba1'
----------------------------------------------------------------
Moody's Investors Service has taken these actions on the long-term
credit rating of these notes issued by Foncaixa Ftgencat 5, FTA:

  -- class A(S) notes, Confirmed at Aaa, previously placed under
     review for downgrade on 23 March 2009

  -- class A(G) notes, Confirmed at Aaa, previously placed under
     review for downgrade in 23 March 2009

  -- class B notes, Downgraded to A3, previously Aa3 placed under
     review for downgrade on 23 March 2009

  -- class C notes, Downgraded to Ba1, previously Baa3 placed
     under review for downgrade on 23 March 2009

Moody's initially assigned definitive ratings on November 27,
2007.

The rating action concludes the rating review resulting from
Moody's revision of its methodology for granular SME portfolios in
Europe, Middle East and Africa.  This revised methodology was
introduced on March 17, 2009 and the affected transactions had
been subsequently placed on review for downgrade on March 23,
2009.

As a result of its revised methodology, Moody's has reviewed its
assumptions for Foncaixa Ftgencat 5 collateral portfolio, taking
into account anticipation of performance deterioration in the
current down cycle, and the exposure of the transaction to the
real estate sector (either through security in the form of a
mortgage or debtors operating in these markets).  The
deterioration of the Spanish economy has been reflected in Moody's
negative sector outlook on Spanish SME securitization transactions
("EMEA ABS, CMBS & RMBS Asset Performance Outlooks", published in
July 2009).  To date, this transaction has been performing better
than the Spanish SME index.  As of November 2009, the outstanding
delinquency rate is at 2.15% of current balance and the cumulative
artificial write-offs (more than 12 months in delinquencies) stand
at 0.19% of original balance plus replenishments.  At end of
November 2009 the reserve fund had been fully funded at its target
level.

As a result of the above, Moody's has revised its assumption of
the default probability of the SME debtors to an equivalent rating
in the single B-range for debtors operating in the real estate or
hotel sector and in the low Ba-range for the non-real-estate and
non hotels debtors.  Additionally loans in arrear are notched down
depending on the length of time being in arrears.  On the opposite
performing loans not related to the real estate or hotel sector
with relatively long seasoning are notched up depending on their
actual seasoning.

At the same time Moody's estimated the remaining weighted average
life of the portfolio equal to 5.3 years.  As a consequence these
revised assumptions have translated into an increase of the
cumulative mean default assumption of 9.3% of the current
outstanding portfolio.  When converting these numbers into a
cumulative mean default rate of original balance plus
replenishments the revised expected cumulative default rate is
6.71% compared to the initial assumption of 4.75%.  Given the high
granularity of the outstanding portfolio (effective number of 2078
as of October 2009) and the lack of any major sector
concentrations Moody's applied the normal inverse distribution to
derive the probabilities of its default scenarios and reduced the
original volatility of 57.5% to 45%.  Stochastics recoveries were
modeled assuming a 65% mean recovery rate and a 20% standard
deviation.  This compares to an initial assumption at closing of
55% fixed recovery rate.  This relative increase in the recovery
rate is mainly owed to the high percentage of residential and
commercial mortgages backing the outstanding loans.  The constant
prepayment rate Moody's used in its cash flow model was decreased
to 5% and aligned to the average CPR observed so far.  This
compares to 15% assumed at close.

In summary Moody's concluded that the negative effects of the
revised default and remaining weighted average life assumptions
could partly be offset by the slight increase in credit
enhancement, the lowering in Moody's volatility assumption and the
increased recovery rate expectations for the outstanding series
A(S) and A(G) notes but not for the B and C notes.

The class A(G) notes benefit from a guarantee from the Generalitat
de Catalunya (A1) for interest and principal payments.  Moody's
has determined that the expected loss associated with class A(G)
without the Generalitat de Catalunya guarantee, which was
consistent with a Aaa rating at closing, would be consistent with
an Aa1 rating.  Moody's used a joint default approach in order to
derive the Aaa rating on the guaranteed class A(G) notes.

Foncaixa Ftgencat 5, FTA is a securitization fund, which purchased
a pool of loans granted to Spanish SMEs and individuals originated
by Caja de Ahorros y Pensiones de Barcelona ("La Caixa").  In
October 2007 the portfolio consisted of 27,757 loans and 23,945
debtors.  The loans were originated between 1989 and 2007, with a
weighted average seasoning of 1.8 years and a weighted average
remaining term of 15.5 years.  Geographically the pool is fully
concentrated in Catalonia.  At close the concentrations in the
building and real estate sector equaled to 22% of current
portfolio amount, which is lower than the sector-average
concentration in the SME ABS portfolios.  The pool factor is 71%
as of November 2009.

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.


GC FTPYME: Moody's Downgrades Rating on Class E Notes to 'Caa3'
---------------------------------------------------------------
Moody's Investors Service has downgraded these tranches in two
Banco Pastor SME securitization transactions:

Issuer EdT FTPYME Pastor 3:

  -- EUR15.4 million Class C: Downgraded to Caa1 from Ba2,
     previously on 26 June 2009 placed on review for downgrade

Issuer GC FTPYME Pastor 4:

  -- EUR256.6 million Class A2: Confirmed at Aaa, previously on 26
     June 2009 placed on review for downgrade

  -- EUR15.8 million Class B: Downgraded to A2 from Aa3,
     previously on 26 June 2009 placed on review for downgrade

  -- EUR15.7 million Class C: Downgraded to Ba2 from Baa1,
     previously on 26 June 2009 2009 placed on review for
     downgrade

  -- EUR18.9 million Class D: Downgraded to Caa2 from Ba3,
     previously on 26 June 2009 2009 placed on review for
     downgrade

  -- EUR12.6 million Class E: Downgraded to Caa3 from Caa1,
     previously on 26 June 2009 2009 placed on review for
     downgrade

The above rating actions were prompted by a greater-than-expected
increase in the level of delinquencies over the last year.  In EdT
FTPYME Pastor 3, the outstanding 90+ delinquencies (i.e.
delinquencies equal or greater than 90 days) as of October 2009
were equal to 10.44% of the portfolio current balance, a 217%
increase since July 2008, when the outstanding 90+ delinquencies
were equal to 4.79% of the portfolio current balance.  The reserve
fund started to be drawn in April 2009 and represents 82.4% of its
target amount as of last reporting date.  In GC FTPYME Pastor 4,
the outstanding 90+ delinquencies (i.e. delinquencies equal or
greater than 90 days) as of November 2009 were equal to 8.21% of
the current portfolio balance, an increase of 489% since June
2008, when the outstanding 90+ delinquencies equaled 1.68%.  The
reserve fund was first drawn in December 2008 and it never
recovered to its target level since then, reaching 71.8% of target
as of last reporting date.

As part of its review, Moody's has considered the exposure of the
transaction to the real estate sector (either through security in
the form of a mortgage or debtors operating in the real estate
sector).  The deterioration of the Spanish economy has been
reflected in the Moody's negative sector outlook on the Spanish
SME securitization transactions ("EMEA ABS, CMBS & RMBS Asset
Performance Outlooks", published in July 2009).

As a result of the above, Moody's has revised its assumption of
the default probability of the SME debtors to an equivalent rating
in the single B-range for the debtors operating in the real estate
sector, and in the low Ba-range for the non-real-estate debtors.
At the same time, Moody's estimated the remaining weighted-average
life of each specific pool.  As a consequence, these revised
assumptions have translated into an increase of the cumulative
mean default assumption for all these transactions.  Given the
relatively low effective number of borrowers in the portfolio
backing each transaction, the rating agency used a Monte-Carlo
simulation to determine the probability function of the defaults.

A brief description of the main points in each transaction
follows, along with Moody's original and revised inputs as part of
its review.

                       EDT FTPYME Pastor 3

As of October 2009, this transaction included 898 obligors, with
the largest debtor representing 3.85% of the outstanding
portfolio.  The concentration in the "building and real estate"
sector is approximately 48.37% according to Spanish CNAE code.
Moody's estimated the remaining weighted average life of the
portfolio to equal 3.8 years.  Revised assumptions have translated
into an increase of the cumulative mean default assumption for
this transaction to 29% of the current portfolio balance (which is
equivalent to a mean default of 17% of original portfolio balance)
mainly driven by the high concentration by debtor (Top 5 debtors
represent 14.96% of the pool).  Moody's had already revised its
assumption in September 2008 to a mean default of 9.0% of the then
pool balance (equivalent to 8.2% of original balance) and a
coefficient of variation of 45% whereas Moody's original mean
default assumption at closing was 4.35% of original balance, with
a coefficient of variation of 66%.  The effective number of
borrowers in the portfolio is around 115, and the coefficient of
variation is 28%.  The recovery rate assumption is now 50%, while
values in the 50% to 35% range were tested at closing.  The
proportion of the loans with a mortgage guarantee is 70% vs. 61%
at closing.  The revised constant prepayment rate assumption is
now 5%, while the CPR assumption was 15% at closing.

In summary, Moody's concluded that the negative effects of the
revised default assumptions were not fully offset by the increased
credit support available for the outstanding series C notes
(11.78% of reserve fund + xs spread guarantee by the swap).  The
rating of Class A1 notes was not affected as it benefits from the
increase in the credit enhancement outstanding (subordination of
the Class B and C, reserve fund and xs spread guarantee by the
swap) and the ratings of class A2(G) and B are fully linked to the
rating of Kingdom of Spain (Aaa) and European Investment Fund
(Aaa) respectively which guarantees principal and interest payment
on these notes.

                        GC FTPYME Pastor 4

As of October 2009, this transaction included 2,729 obligors with
the largest debtor representing 2.21% of the outstanding
portfolio.  The concentration in the "building and real estate"
sector is approximately 24.58% according to Spanish CNAE code.
Moody's estimated the remaining weighted average life of the
portfolio to be equal to 5.6 years.  Revised assumptions have
translated into an increase of the cumulative mean default
assumption for this transaction to 20% of the current portfolio
balance (which is equivalent to a mean default of 10% on original
portfolio balance).  Moody's had already revised its assumption in
September 2008 to a mean default of 10.5% of the then pool balance
(equivalent to 7.2% of original balance) and a coefficient of
variation of 45% whereas Moody's original mean default assumption
at closing was 4.04% of original portfolio balance, with a
coefficient of variation of 55%.  The effective number of
borrowers in the portfolio is around 317, and the coefficient of
variation is 34.7%.  The recovery rate assumption is now 45%,
while values in the 50% to 35% range were tested at closing.  The
proportion of the loans with a mortgage guarantee is 64% vs.  56%
at closing and the WALTV is 46.74%.  The revised CPR assumption is
now 5%, while the CPR assumption was 15% at closing.

In summary, Moody's concluded that the negative effects of the
revised default assumptions were offset by the increased credit
support available for the outstanding Class A2 notes but not fully
for series B, C, D and E notes.  The class Class A3(G) notes was
not placed on review for possible downgrade as it benefits from
the guarantee of the Kingdom of Spain (Aaa) for interest and
principal payments.

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
risks have not been addressed, but may have a significant effect
on yield to investors.

Moody's is closely monitoring the transaction.


SANTANDER EMPRESAS: S&P Downgrades Ratings on Class F Notes to 'D'
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
two non-asset-backed classes of notes: One tranche in TDA Ibercaja
5, Fondo de Titulizacion de Activos, and one tranche in Fondo de
Titulizacion de Activos Santander Empresas 2.  All the other
ratings in these transactions are unaffected by these downgrades.

S&P lowered to 'D' the rating on the most junior classes of notes
in these transaction following the issuers' failure to meet due
interest payments on these notes on their most recent interest
payment dates.

These tranches fund the cash reserves in each transaction, and (as
evidenced by their low sub-investment grade ratings) were
generally not expected to meet due interest payments over their
term.

These classes of notes are not asset-backed.  Instead, they are
serviced by excess spread generated in each transaction.

                           Ratings List

                          Ratings Lowered

         TDA Ibercaja 5, Fondo de Titulizacion de Activos
           EUR1.207 Billion Secured Floating-Rate Notes

                                    Rating
                                    ------
                  Class       To            From
                  -----       --            ----
                  E           D             CCC-

       Fondo de Titulizacion de Activos Santander Empresas 2
               EUR2.954 Billion Floating-Rate Notes

                                    Rating
                                    ------
                  Class       To            From
                  -----       --            ----
                  F           D             CCC-


TDA IBERCAJA: S&P Downgrades Ratings on Class E Notes to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
two non-asset-backed classes of notes: One tranche in TDA Ibercaja
5, Fondo de Titulizacion de Activos, and one tranche in Fondo de
Titulizacion de Activos Santander Empresas 2.  All the other
ratings in these transactions are unaffected by these downgrades.

S&P lowered to 'D' the rating on the most junior classes of notes
in these transaction following the issuers' failure to meet due
interest payments on these notes on their most recent interest
payment dates.

These tranches fund the cash reserves in each transaction, and (as
evidenced by their low sub-investment grade ratings) were
generally not expected to meet due interest payments over their
term.

These classes of notes are not asset-backed.  Instead, they are
serviced by excess spread generated in each transaction.

                           Ratings List

                          Ratings Lowered

         TDA Ibercaja 5, Fondo de Titulizacion de Activos
           EUR1.207 Billion Secured Floating-Rate Notes

                                    Rating
                                    ------
                  Class       To            From
                  -----       --            ----
                  E           D             CCC-

       Fondo de Titulizacion de Activos Santander Empresas 2
               EUR2.954 Billion Floating-Rate Notes

                                    Rating
                                    ------
                  Class       To            From
                  -----       --            ----
                  F           D             CCC-


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


FORD MOTOR: Settles Commercial Terms to Volvo's Sale to Geely
-------------------------------------------------------------
Ford Motor Company on Dec. 23 confirmed that all substantive
commercial terms relating to the potential sale of Volvo Car
Corporation have been settled between Ford and Zhejiang Geely
Holding Group Company Limited.

While some work still remains to be completed before signing --
including final documentation, financing and government approvals
-- Ford and Geely anticipate that a definitive sale agreement will
be signed in the first quarter of 2010, with closing of the sale
likely to occur in the second quarter 2010, subject to appropriate
regulatory approvals.

The prospective sale would ensure Volvo has the resources,
including the capital investment, necessary to further strengthen
the business and build its global franchise, while enabling Ford
to continue to focus on and implement its core ONE Ford strategy.

While Ford would continue to cooperate with Volvo Cars in several
areas after a possible sale, the company does not intend to retain
a shareholding in the business post-sale.

More details will be made available once the expected definitive
sale agreement is signed in the first quarter of 2010.

Keith Naughton, Ola Kinnander and Cathy Chan at Bloomberg News
report that person familiar with the talks has said Ford has made
progress to resolve issues such as protecting intellectual
property.

Bloomberg recalls Ford named Geely its preferred bidder for Volvo
on Oct. 28 after putting the Swedish automaker on the block a year
ago to finish unloading overseas luxury brands and focus on its
namesake division.  Bloomberg notes people familiar with the bid
have said Geely is offering about US$2 billion, less than one-
third what Ford paid for Volvo a decade ago.

Bloomberg relates two people familiar with the proposal have said
Geely is planning to build a Volvo factory in China after the
purchase.

                         About Ford Motor

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

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.


GENERAL MOTORS: BAIC Acquires Saab Unit's Technology for US$200MM
-----------------------------------------------------------------
The Financial Times reports that Beijing Automotive Industry
Holding Corp. said it paid US$200 million for technology from
General Motors Co.'s Saab unit.

The FT relates BAIC said in a statement ahead of a news conference
on Dec. 23 that intellectual property bought by China's fifth-
largest automaker includes the rights to three overall vehicle
platforms, two engine technologies and two transmission systems.

The acquisition includes the intellectual property for Saab's 9-5
and 9-3 sedans and some equipment to make them.

BAIC, the FT says, plans to immediately start integrating the Saab
technology into its vehicles.  According to the FT, BAIC, which
had been a part of the Koenigsegg group bidding for Saab, expects
commercial production for Saab-based cars to begin as soon as
2011.

As reported by the Troubled Company Reporter-Europe on Dec. 21,
2009, GM on Dec. 20 said following its announcement that it will
begin the orderly wind down of Saab Automobile AB, the Company has
received inquiries from several parties.

"We will evaluate each inquiry.  We will not comment further until
these evaluations have been completed," GM said.

On Dec. 18 GM said the intended sale of Saab 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.  GM said that 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.

                        Spyker's Fresh Bid

According to Dow Jones Newswires' Steve McGrath and Sharon Terlep,
Spyker Cars NV has extended another bid for Saab.  Dow Jones said
Spyker tried to resurrect a deal with a new offer it hopes will
overcome the obstacles that caused its talks with GM to collapse.

"We have made every effort to resolve the issues that were
preventing the conclusion of this matter and we have asked GM and
all other involved parties to seriously consider this offer,"
Spyker Chief Executive Victor Muller said, according to Dow Jones.

According to Dow Jones, GM Vice President John Smith, who is
leading Saab talks, on Dec. 20 said by email, "Should something
concrete develop we'll consider it, but in the meantime we're
making the wind-down preparations."

Dow Jones reports Spyker said its new offer is an 11-point
proposal addressing each of the issues that arose during the due-
diligence process and would "remove each of the obstacles that
were standing in the way of a swift transaction."  Spyker said the
new offer has the full backing of Saab management and eliminated
the need for a loan from the European Investment Bank.  It said
the new offer was valid until 5 P.M. Detroit time Dec. 21,
according to the report.

                       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)


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


PETROL OFISI: Fitch Affirms Issuer Default Ratings at 'BB-'
-----------------------------------------------------------
Fitch Ratings has affirmed Turkey-based Petrol Ofisi A.S.'s Long-
term foreign and local currency Issuer Default ratings at 'BB-'
respectively.  The Outlooks on both Long-term ratings are Stable.
Fitch is currently reviewing the mapping for its Turkish National
Scale ratings, following the upgrade of Turkey's sovereign ratings
on December 3, 2009 and expects to announce the results of a
possible recalibration shortly.

The rating action reflects POAS's leading market position in the
Turkish fuel distribution market (28% market share in diesel sales
and 24% in gasoline sales), leading position in fuel storage (25%
of domestic capacities), and healthy funds from operations and
profit margins, which have proved relatively resilient to the
economic recession.  The ratings also capture POAS's moderate
financial policy.  The ratings are constrained by the company's
high exposure to foreign currency risk, given its short position
in US$ and lack of vertical integration.

The company remains jointly controlled by Dogan Sirketler Grubu
Holding A.S.  (Dogan Holding) and OMV AG ('A-'/Stable), after OMV
decided not to take full control of POAS in November 2009
following several months of negotiations with Dogan Holding.
Fitch rates POAS on a standalone basis.

In addition to lower fuel demand, driven by the economic
recession, the company faced several regulatory/government
challenges in 2009.  These included a ban on POAS applying for
state tenders for one year imposed by the government in April 2009
(due to alleged fuel oil quality problems in a supply contract
with state-owned Electricity Production Company EUAS) and then
lifted by a court decision in August 2009, and a temporary two-
month cap on the distribution margins of all retailers in Turkey
imposed by the Energy Market Regulatory Agency in late June 2009.
If any additional regulatory/government decisions have a
significant negative impact on the company's cash flow or
leverage, the ratings could come under pressure.

Within its strategy of becoming a vertically integrated regional
energy player, POAS plans to build a large 10 million tonnes per
annum (mtpa) refinery in Ceyhan, Turkey's energy hub, although the
current deep refining trough and the negative outlook for oil
refining globally may result in a revision of this plan.  This
project is likely to be conducted together with POAS's two owners,
Dogan Holding and OMV, who are expected to provide most of the
project-related funding.  The agency notes that POAS, on a
standalone basis, does not have the financial headroom within its
current ratings to fund a substantial part of the refinery
project.  Fitch will analyze the impact of the refinery project on
POAS's ratings once the financial structure of the transaction is
unveiled.

The company has sufficient liquidity.  At end-September 2009 it
had cash of TRY1.4 billion against short-term debt of TRY575
million.  Liquidity related to the large amount of outstanding
letters of credit, almost TRY2 billion, is covered by a cash
surplus, inventories and trade receivables.  POAS does not have
committed bank lines, which is common for Turkish corporates.


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


AGRO-N.I.V.A. LLC: Creditors Must File Claims by December 30
------------------------------------------------------------
Creditors of LLC AGRO-N.I.V.A. (code EDRPOU 34437685) have until
December 30, 2009, to submit proofs of claim to:

         M. Fomenko
         Insolvency Manager
         Office 431
         Chkalov Str. 20
         54017 Nikolayev
         Ukraine

The Economic Court of Nikolayev commenced bankruptcy proceedings
against the company on October 29, 2009.  The case is docketed
under Case No 18/46/09.

The Court is located at:

         The Economic Court of Nikolayev
         Admiralskaya Str. 22-a
         54009 Nikolayev
         Ukraine

The Debtor can be reached at:

         LLC AGRO-N.I.V.A.
         Office 2
         Gmirev Str. 6
         54028 Nikolayev
         Ukraine


BIRS LLC: Creditors Must File Claims by December 30
----------------------------------------------------
Creditors of LLC BIRS (code EDRPOU 31342376) have until December
30, 2009 to submit proofs of claim to:

         A. Yakovenko
         Insolvency Manager
         Moscow Ave. 199/1
         61037 Moscow
         Ukraine

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company on November 17, 2009.  The case is docketed
under Case No B-19/174-09.

The Court is located at:

          The Economic Court of Kharkov
          Svoboda Square 5
          61022 Kharkov
          Ukraine


MIRGOROD INDUSTRIAL: Creditors Must File Claims by December 30
--------------------------------------------------------------
Creditors of LLC Mirgorod Industrial Set (code EDRPOU 33172084)
have until December 30, 2009, to submit proofs of claim to:

           A. Tereschenko
           Insolvency Manager
           Office 1
           Frunze Str. 113-b
           36002 Poltava
           Ukraine

The Economic Court of Poltava commenced bankruptcy proceedings
against the company on September 17, 2009.  The case is docketed
under Case No 7/14.

The Court is located at:

           The Economic Court of Poltava
           Zigin Str. 1
           36000 Poltava
           Ukraine

The Debtor can be reached at:

           LLC Mirgorod Industrial Set
           Shyshatsky Lane 10
           Mirgorod
           Poltava
           Ukraine


REAL-ROUL LLC: Creditors Must File Claims by December 30
--------------------------------------------------------
Creditors of LLC Firm Real-Roul (code EDRPOU 31153562) have until
December 30, 2009, to submit proofs of claim to G. Serdiuk, the
company's insolvency manager.

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company on November 18, 2009.  The case is docketed
under Case No B-39/232-09.

The Court is located at:

          The Economic Court of Kharkov
          Svoboda Square 5
          61022 Kharkov
          Ukraine

The Debtor can be reached at:

          LLC Firm Real-Roul
          Kitayenko Str. 1
          61020 Kharkov
          Ukraine


SERVICEPACK LLC: Creditors Must File Claims by December 31
----------------------------------------------------
Creditors of LLC Servicepack (code EDRPOU 32030586) have until
December 31, 2009, to submit proofs of claim to:

          State Tax Inspection in Kiev District of Kharkov
          Insolvency Manager
          Chernishevsky str. 41
          Kiev
          Ukraine

The Economic Court of Kharkov commenced bankruptcy proceedings
against the company on September 23, 2008.  The case is docketed
under Case No B-19/138-08.

The Court is located at:

          The Economic Court of Kharkov
          Svoboda Square 5
          61022 Kharkov
          Ukraine

The Debtor can be reached at:

          LLC Servicepack
          Office 197
          Staroshyshkovskaya Str. 6
          Kharkov
          Ukraine


UKRAGROTEX LLC: Creditors Must File Claims by December 31
---------------------------------------------------------
Creditors of LLC Company Ukragrotex (code EDRPOU 33634268) have
until December 31, 2009, to submit proofs of claim to E. Zorina,
the company's insolvency manager.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on November 11, 2009.  The case is docketed
under Case No. 15/450-b.

The Court is located at:

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

The Debtor can be reached at:

          LLC Company Ukragrotex
          Kaunasskaya Str. 27
          02160 Kiev
          Ukraine


VALMI AVTOMOTIV: Creditors Must File Claims by December 30
----------------------------------------------------------
Creditors of LLC Valmi Avtomotiv (code EDRPOU 31065183) have until
December 30, 2009, to submit proofs of claim to:

          S. Avilov
          Insolvency Manager
          Office 175
           Gagarin Str. 29
           Brovary
           07400 Kiev
           Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on November 18, 2009.  The case is docketed
under Case No 15/456-b.

The Court is located at:

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

The Debtor can be reached at:

           LLC Valmi Avtomotiv
           Mayakovsky Ave. 6
           02217 Kiev
           Ukraine


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


CALA GROUP: Has Debt-For-Equity Deal with Bank of Scotland
----------------------------------------------------------
Terry Murden at The Scotsman reports that CALA Group Ltd. has
secured a debt-for-equity deal with Bank of Scotland that will
secure its future and provide the capital required to fund its
turnaround prospects.

According to the report, debt will be converted into new
preference shares to reduce the group's borrowings and strengthen
its balance sheet.

The report relates the group has agreed a business plan with the
bank under a new management team, led by Alan Brown, who took over
as chief executive in September.

The report recalls the company delayed publishing its 2007-8
accounts while the refinancing deal was thrashed out.  In
September, it reported a GBP26.5 million full-year loss before
exceptional costs of GBP239.6 million, giving a loss before tax of
GBP266.1 million, the report recounts.

Headquartered in Edinburgh, CALA Group Ltd. is a privately owned
residential and commercial property developer.


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
GBP60 Million And EUR730 Million Asset-Backed Floating-Rate Notes

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

          Chester Asset Receivables Dealings No. 12 PLC
         GBP300 Million Asset-Backed Floating-Rate Notes

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

           Chester Asset Receivables Dealings 2001-B PLC
          GBP250 Million Asset-Backed Floating-Rate Notes

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

           Chester Asset Receivables Dealings 2003-B PLC
          GBP250 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
          GBP500 Million Asset-Backed Floating-Rate Notes

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

           Chester Asset Receivables Dealings Issuer Ltd.
  GBP300 Million Asset-Backed Floating-Rate Notes Series 2004-A1

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

           Chester Asset Receivables Dealings Issuer Ltd.
  GBP250 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.
  GBP300 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
GBP60 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
         GBP300 Million Asset-Backed Floating-Rate Notes

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

          Chester Asset Receivables Dealings 2001-B PLC
         GBP250 Million Asset-Backed Floating-Rate Notes

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

          Chester Asset Receivables Dealings 2003-B PLC
         GBP250 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
         GBP500 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.
   GBP70 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.
   GBP50 Million Asset-Backed Floating-Rate Notes Series 2006-B1

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


FORMPRO MAIL: In Administration; KPMG Appointed
-----------------------------------------------
Richard Hill and Joff Pope of KPMG LLP were appointed as
administrators of Bristol-based printing and mail marketing
company, Formpro Mail Marketing Limited, on December 21, 2009.

The operation was established during the 1950s and has 177
employees, all of whom are based in Bristol.

Joint Administrator, Richard Hill, said: "It is always upsetting
when an established business with a loyal and long serving
workforce enters insolvency.  The company operates in an extremely
competitive market and has incurred substantial losses in recent
years.  Attempts to restructure the company have been
unsuccessful, with cost cutting measures failing to keep pace with
declining turnover."

Mr. Hill continued: "We have successfully concluded a sale of part
of the business, which includes fulfillment client services, data
processing, hand packing, digital printing, laser printing and
print procurement departments, to Latcham Consulting Limited.
This sale will preserve 61 jobs."

Unfortunately, it has been necessary to make 61 staff redundant.

The administrators are reviewing the remaining elements of the
business and are in discussions with key customers to determine
the commerciality of continuing to trade.


IBS-STL UK: 8 Stores Sold to Koorong, 6 to Crusade Int'l
--------------------------------------------------------
Victoria Gallagher at The Bookseller reports that of 14 of
IB-STL UK's 40 Wesley Owen stores have been bought after the
company went into administration.

The Bookseller disclosed IB-STL was placed in administration on
Dec. 18, 2009.  Russell Cash and Don Bailey of Baker Tilly
Restructuring and Recovery were appointed joint administrators,
the Bookseller said.

The Bookseller relates Mr. Cash on Dec. 21 said that eight stores
had been bought by Christian bookseller Koorong, as well as the
Wesley Owen trading name and Web site domain.

Koorong has bought Wesley Owen stores in Bath, Birmingham,
Bristol, Bromley, Colraine, Derby, Glasgow and York, the
Bookseller discloses.  Bookselling chain, Christian Literature
Crusade International (CLC) has bought a further six stores
including Bolton, Cambridge, Coventry, Guildford, Kingston and
Stockport, the Bookseller notes.

According to the Bookseller, Mr. Cash said that the remaining
stores would "continue to trade for the foreseeable future."

"I am hoping that there will be a solution for the majority of the
26 stores . . . there is a healthy degree of interest," the
Bookseller quoted Mr. Cash as saying.

Koorong has also bought Authentic Book Publishing and STL
Distribution has been purchased by John Ritchie, a Kilmarnock-
based book publisher and distributor based, the Bookseller says.
IBS-STL-owned Authentic Music has been bought by Kingsway
Communications, the Bookseller states.

IBS-STL UK employs 490 people.


LITHO SUPPLIES: In Administration; MCR Appointed
------------------------------------------------
Andrew Stoneman and Philip Duffy of MCR were appointed Joint
Administrators of printing supply companies Litho Supplies plc,
Litho Supplies (UK) Limited and Graphica Plus Limited on
December 22, 2009.

Litho Supplies (UK) Limited is a fully owned subsidiary of Litho
Supplies plc, supplying and distributing printing consumables,
equipment and services to the UK printing industry.  It has an
annual turnover of about GBP22 million and employs approximately
120 staff.

Muro Digital, a division of Litho Supplies (UK) Limited,
specializes in high quality office supplies and equipment, with
Graphica Plus Limited trading as Andersons a distributor of large
format media and equipment.

Philip Duffy commented: "The administration of the Companies
follows the continuing pressure on the printing sector including
the flexographic, digital printing and corporate print markets,
during the recession.  This has created an unfortunate situation
for the Companies and contributed to them entering into
administration.  The priority is to now identify a suitable
purchaser. W e will continue to trade all three businesses with a
view to achieve a sale as a going concern.

The Joint Administrators are currently seeking purchasers for the
businesses as going concerns.  A sales memorandum has been
produced and any interested parties should contact Ben Wiles at
bwiles@mcr.uk.com as a matter of urgency.


MORTGAGE TIMES: Enters Into Administration
------------------------------------------
Introducer Today reports that The Mortgage Times Group entered
administration on December 21.

The report relates Mortgage Times sent an e-mail to brokers on
December 21 telling them they were no longer authorized to trade.

According to the report, the company explained it had "left no
stone unturned in an attempt to find a solution to our recent
difficulties" but had been left with no other options.

Mortgage Times told its staff that they would not be paid after a
round of talks with a buyer collapsed, the report discloses.

The Group Companies House accounts showed the firm suffered an
operating loss of GBP 1,335,705 filed for the year to December 31,
2008, the report says.

The report notes the Financial Services Authority updated its
website last week to say Mortgage Times is "closed to regulated
business."


NORTEL NETWORKS: To Sell VOIP Business to Genband for US$282MM
--------------------------------------------------------------
Nortel Networks Corporation and its principal operating subsidiary
Nortel Networks Limited, and certain of its other subsidiaries,
including Nortel Networks Inc. and Nortel Networks UK Limited (in
administration), have entered into a "stalking horse" asset sale
agreement with GENBAND, Inc. for the sale of substantially all of
the assets of its North America, Caribbean and Latin America and
Asia Carrier VoIP and Application Solutions business, and an asset
sale agreement with GENBAND for the sale of substantially all of
the assets of the Europe, Middle East and Africa portion of its
CVAS business for a purchase price of US$282 million, subject to
balance sheet and other adjustments currently estimated at
approximately US$100 million.

These agreements include the planned sale of substantially all
assets of the CVAS business globally including softswitching,
gateways and SIP applications.  These agreements also include all
patents and intellectual property that are predominantly used in
the CVAS business.

GENBAND has teamed with one of its existing shareholders, One
Equity Partners III, L.P., to assist in financing the proposed
purchase of Nortel's CVAS assets. OEP manages investments and
commitments for JP Morgan Chase & Co. in private equity
transactions.

Currently, subject to the terms of these agreements as well as any
changes that may occur through the stalking horse and sale
process, a significant majority of CVAS employees would have the
opportunity to continue employment with GENBAND.  This includes
the employees assigned to the CVAS business in certain EMEA
jurisdictions who would transfer to GENBAND by operation of law.

In early January, Nortel expects to seek U.S. and Canadian court
approvals for bidding procedures, including a bid deadline and
tentative auction date.

Commenting on the announcement, Samih Elhage, President of
Nortel's CVAS business said:

"The proposed transaction represents a clear and positive step
forward for Nortel's CVAS customers, employees, and business.
Today's announcement is a strong endorsement of our continued
leadership in the Carrier VoIP market where we have held the #1
position since 2002."

Elhage continued: "Nortel's industry-leadership in Carrier VoIP
would not be possible without the continued commitment and support
of our strong and loyal customer base of leading carriers across
the globe.  Throughout this process, Nortel will remain focused on
providing our customers the highest level of service, support and
responsiveness that they have come to expect from our team.
Today's news is also a testament to our employees, whose
commitment to innovation and customer support has ensured our
growth in market share in 2009 despite a challenging economy."

Nortel is the recognized leader in the Carrier VoIP space, having
shipped more than 118 million Carrier VoIP and Multimedia ports,
including over 10 million SIP lines to leading wireline and
wireless carriers globally. In addition, Nortel has secured
business with 10 leading service providers since late 2008 and has
gained more than 40 new Carrier VoIP customers since the beginning
of 2009.

Details of Sale Process

Nortel will file the stalking horse asset sale agreement with the
United States Bankruptcy Court for the District of Delaware along
with a motion seeking the establishment of bidding procedures for
an auction that allows other qualified bidders to submit higher or
otherwise better offers, as required under Section 363 of the U.S.
Bankruptcy Code.  A similar motion for the approval of the bidding
procedures will be filed with the Ontario Superior Court of
Justice.  Following completion of the bidding process, final
approval of the U.S. and Canadian courts will be required.

In relation to the EMEA entities to which they are appointed, the
UK Joint Administrators have the authority, without further court
approval, to enter into the EMEA asset sale agreement on behalf of
those relevant Nortel entities.  In some EMEA jurisdictions, this
transaction is subject to information and consultation with
employee representatives and/or employees.

In addition to the processes and approvals outlined above,
consummation of the transaction is subject to the satisfaction of
regulatory and other conditions and the receipt of various
approvals, including governmental approvals in Canada and the
United States and the approval of the court in Israel.  The
agreements are also subject to purchase price adjustments under
certain circumstances.

As previously announced, Nortel does not expect that the Company's
common shareholders or the NNL preferred shareholders will receive
any value from the creditor protection proceedings and expects
that the proceedings will result in the cancellation of these
equity interests.

                       About Nortel Networks

Nortel Networks (OTCBB:NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers.  The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications.  Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young has been appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.  The Monitor also sought recognition of the CCAA
Proceedings in the Bankruptcy Court under Chapter 15 of the
Bankruptcy Code.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

The Chapter 15 case is Bankr. D. Del. Case No. 09-10164.  Mary
Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll
& Rooney PC, in Wilmington, Delaware, serves as Chapter 15
petitioner's counsel.

Certain of Nortel's European subsidiaries have also made
consequential filings for creditor protection.  The Nortel
Companies related in a press release that Nortel Networks UK
Limited and certain subsidiaries of the Nortel group incorporated
in the EMEA region have each obtained an administration order
from the English High Court of Justice under the Insolvency Act
1986.  The applications were made by the EMEA Subsidiaries under
the provisions of the European Union's Council Regulation (EC)
No. 1346/2000 on Insolvency Proceedings and on the basis that
each EMEA Subsidiary's center of main interests is in England.
Under the terms of the orders, representatives of Ernst & Young
LLP have been appointed as administrators of each of the EMEA
Companies and will continue to manage the EMEA Companies and
operate their businesses under the jurisdiction of the English
Court and in accordance with the applicable provisions of the
Insolvency Act.

Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.

As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion.  The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies.  As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about US$4.2
billion of unsecured public debt.

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


ROYAL BANK: Moody's Affirms Ratings on Preference Shares at 'B3'
----------------------------------------------------------------
Moody's has taken rating actions on certain hybrid and junior
subordinated capital instruments of Royal Bank of Scotland Group.
The rating actions incorporate the impact of the European
Commission requirement for the Royal Bank of Scotland Group to
skip coupons for two years from a date starting not later than
April 30, 2010, on those hybrid instruments where the terms allow
for such a coupon skip.  The deferral requirement was part of
RBSG's State Aid Commitment Deed entered into by RBSG with HM
Treasury on November 26, 2009, containing undertakings given by
RBSG to HM Treasury for the purposes of obtaining EC State aid
approval.  RBSG received formal EC State aid approval on
December 14, 2009.

However, one factor which Moody's considers to remain uncertain
and which could affect the eventual outcome as to which securities
will pay and which will not pay in 2010-2012 is the availability
of distributable profits.  Certain non-cumulative preference
shares (which also act as a dividend pusher for certain UT2 and
LT2 securities) are only able to pay subject to the availability
of distributable profits.  At June 2009 the holding company of
RBSG had distributable profits of GBP5.5 billion, but losses in
H209 could erode these reserves.  In the 2008 financial statements
RBSG had sufficient distributable profits to pay coupons only
because it entered into a transaction which resulted in the
proceeds of the October 2008 GBP14.3 billion capital raising
moving from the Merger Reserve to Retained Earnings.  Moody's
understand RBSG is entering into a similar transaction in 2009 on
the back of the December 2009 capital raising.  But as the
accounting for the proceeds of its rights offering in such a way
may not fit in with the notion of "burden sharing" which the EC
seems to promote (as coupon payments on RBSG's hybrid instruments
could indirectly stem from funds raised from shareholders rather
than from profits generated by the bank's own activities), Moody's
believe that there is a risk as to whether the current Must-Pay
securities will be accepted as such by the European Commission.
Therefore, Moody's will not finalize the rating of certain
instruments until the availability of distributable profits is
more certain.

The attached document sets out all RBSG securities with deferral
features rated by Moody's.  The securities that are expected to
skip coupon payments ("May Pay" securities) based on language
providing fully optional deferral will continue to be rated on an
expected loss basis, which factors in the anticipated period of
coupon non-payments and the loss severity.  The securities that
could potentially not skip coupons if RBSG has sufficient
distributable profits ("potential Must Pay" securities) would be
notched down from the Baseline Credit Assessment, in line with
Moody's revised methodology for hybrids.  If distributable profits
turned out to be not sufficient, then Must Pay securities would be
rated at the same level as May Pay securities.

Non-cumulative preference shares "May Pay" -- affirmed at B3,
outlook changed to negative -- List A:

The B3-rated non-cumulative preference shares which will skip two
years of coupons over the two- year period (May Pay) in line with
Moody's previous expectations, are rated on an expected loss basis
and are affirmed at B3, but the outlook has changed from stable to
negative.  The negative outlook highlights the fact that downward
pressure on the BFSR (which already has a negative outlook) would
lead to a lower rating.

Non-cumulative preference shares "potential Must Pay" -- B3 on
review for possible upgrade-- List B:

The B3-rated non-cumulative preference shares/ preferred
securities which do not have optional coupon skip but have
mandatory coupon skip tied to the breach of distributable profit
triggers, have been placed on review for possible upgrade.  The
review will be concluded once it is clear whether RBSG has
sufficient distributable profits in 2010.  Those ratings would
likely be upgraded to Ba2 (negative outlook) for securities issued
by Nat West plc, and Ba3 (negative outlook) for securities issued
by RBSG plc, if there are sufficient distributable profits, and
rated B3 (negative outlook) if there were insufficient
distributable profits.  This would place the instruments at three
notches below the Baa2 BCA of Nat West plc, with an additional
notch for structural subordination at the holding company level.
See List B in the attached document for further details.

Cumulative preferred securities "May Pay" -- affirmed at Ba3
(negative outlook) -- List C:

The cumulative preferred securities of RBSG plc which are may pay
securities have been affirmed at Ba3 (negative outlook) on an
expected loss basis.  See List C in the attached document for
further details.

Cumulative preferred security "potential Must Pay" -- Ba3 on
review for possible upgrade -- List D:

The cumulative preferred security of RBSG plc which due to
dividend pusher language could be a Must Pay security if dividends
are paid on List B non-cumulative preference shares, was rated Ba3
(negative outlook) and has been placed on review for possible
upgrade.  It would likely be upgraded to Ba2 (negative outlook) if
there are sufficient distributable profits to pay the List B
securities, and Ba3 (negative outlook) if there were insufficient
distributable profits.  The instrument would be placed at two
notches below the Baa2 BCA of RBS plc, with an additional notch
for structural subordination at the holding company level.

Junior subordinated debt "potential Must Pay" -- remain at Ba1
(RUR) / affirmed at Ba2 (negative outlook) -- List E:

The Must Pay junior subordinated debt of RBS plc and Nat West plc
which remains rated Ba1 (under review for possible downgrade), but
which due to dividend pusher language could be Must Pay securities
if dividends are paid on List B non-cumulative preference shares,
would likely be confirmed at Ba1 (negative outlook) if there are
sufficient distributable profits to pay the List B securities, but
downgraded to Ba2 (negative outlook) if there were insufficient
distributable profits.  The instruments would be rated two notches
below the adjusted BCA of RBS and Nat West instruments.

The Must Pay junior subordinated debt of RBSG which is rated Ba2
(negative outlook) remains at Ba2 (negative outlook), as the
rating would remain at Ba2 (negative outlook) on both an expected
loss approach (if it is a may pay security) or notching approach
(if it is a must pay security).

Correction of RBS plc UT2 junior subordinated security (ISIN
XS0195231526) from Baa3 to Ba1:

Moody's has also corrected the rating of the RBS plc UT2 junior
subordinated security (ISIN XS0195231526) from Baa3 to Ba1 (under
review for possible downgrade).  The security was identified as a
junior subordinated instrument, however on 10 June 2009 instead of
being downgraded with other junior subordinated securities from
Baa3 to Ba1, the rating of this instrument was mistakenly affirmed
at Baa3.  The rating has now been corrected to Ba1.

Downgrade of LT2 dated subordinated instruments with deferral
features -- Lists F and G:

RBSG has a number of LT2 dated subordinated instruments with
deferral features.  Moody's views these instruments which have a
cumulative coupon skip mechanism as in line with an Upper Tier 2
securities that have similar features and has rated them at the
same level.

The two RBS plc LT2 dated subordinated instruments that are May
Pay securities, which have language that allows them to defer
payment of interest if the FSA requires or requests them to do so
(XS0123062886 and XS0201065496) have been downgraded from Baa3 to
Ba2 (negative outlook), reflecting the expected loss for these
instruments, and in line with where Moody's would rate May Pay
Upper Tier 2 securities issued by RBS plc.  See List F in the
attached document for further details.

The six RBSG LT2 dated subordinated instruments that are potential
Must Pay securities due to dividend pusher language, have been
downgraded from Ba1 to Ba2 (negative outlook), and the rating
would remain at Ba2 (negative outlook) on both an expected loss
approach (if they are may pay securities) or notching approach (if
they are must pay securities).

The last rating action on RBSG was on November 3, 2009 when the
Aa3 senior debt rating of RBS plc and A1 senior debt rating of
RBSG were affirmed.  The last rating action taken on the hybrid
securities of RBSG was on September 9, 2009, when various
instruments were placed on review for possible downgrade to
reflect the increased probability of the EC requiring RBSG to skip
coupons on those instruments.


TATA STEEL: Lord Mandelson Calls for Review on Corus Plant Closure
------------------------------------------------------------------
James Lamont and Joe Leahy at The Financial Times report that Lord
Mandelson called on Tata Group on Tuesday to review its decision
to close Corus' Teesside Cast Products site with the loss of 1,700
jobs.

The FT relates Lord Mandelson urged Tata to consider alternative
uses for the plant in Redcar.

Tata Steel needed to stay "very firmly in touch with" the
government to honor a shared responsibility to look after the
workforce and local community, Lord Mandelson said, according to
the FT.  "We are not walking away from Teesside."

According to the FT, the global economic crisis has led to a sharp
fall in production at Corus, the Anglo-Dutch steelmaker, which
Tata Steel bought in 2007 for GBP6.7 billion.  The Tata Group says
it cannot run a 3m tonne capacity steel plant without any
customers or a long-term strategic partner, the FT discloses.  It
said it had held protracted negotiations to try to keep the plant
open, the FT notes.

Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- is a diversified steel producer.  It
has operations in 24 countries and commercial presence in over 50
countries.  Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings.  On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc.  Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008.  In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.

                           *     *     *

As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2.  Moody's said the rating
outlook is stable.


TURQUOISE: London Stock Exchange Takes Control
----------------------------------------------
Robert Lindsay at Times Online reports that the London Stock
Exchange on Dec. 21 sealed a deal to acquire Turquoise, the one
year-old pan-European trading platform set up by nine investment
banks to force London's main stock exchange to cut its fees.

The report says the deal will allow the exchange to trade
securities across Europe for the first time, competing head on
with Euronext and Deutsche Borse.  According to the report, the
LSE will also rescue Turquoise, which has not yet managed to make
a profit because trading was drastically reduced across all
exchanges by the global financial crisis.

The LSE, which revealed it was in talks with Turquoise three
months ago, will take a 60% stake in Turquoise and will sell a
further 9% of Turquoise's existing share capital to other
interested parties, as some of the trading platform's founding
investment banks look to reduce their exposure to the loss-making
enterprise, the report discloses.

The report recalls last year, Turquoise made a pre-tax loss of
GBP15.7 million. The deal will dilute earnings per share for the
combined group in 2011 but will be positive from the end of 2012,
the report notes.

Turquoise's other shareholders are Citigroup, Credit Suisse,
Goldman Sachs, BofA Merrill Lynch, Morgan Stanley, UBS, BNP
Paribas and Societe Generale, the report states.


* UK: Corporate Insolvencies Fall In November, Experian Says
------------------------------------------------------------
The latest Insolvency Index from Experian(R), the global
information services company, has revealed a positive picture in
November, as the number of failing businesses continued to fall
and the financial strength of businesses improved.

Businesses across Great Britain saw an improvement in their
financial strength score[1] from 79.66 in November 2008 to 81.26
November 2009.  Furthermore, the rate of insolvencies[2] fell to
0.09% in November 2009, compared to 0.11% in November 2008.

Rolf Hickmann, Managing Director of pH, an Experian company, said:
"The last four months have seen a fairly low and stable rate of
insolvencies, compared to 2008, and certainly compared to the
heights reached in the last recession in 1992.  In fact the
overall picture shows a very gentle decline in insolvencies
throughout the year.  Furthermore, the latest improvement in the
financial health score is the fifth month in a row that the health
of businesses has improved.

"Despite the prolonged recession, the UKs entrepreneurial spirit
continues to thrive.  The number of micro businesses, those with
one to two employees, is growing rapidly.  They are enjoying
amongst the lowest rates of insolvency and are relatively secure."

Other key highlights include:

     * As in November 2008, businesses in the South West continued
to be the most robust, holding the best financial strength score
during November 2009.

     * Although insolvency rates in the South East region fell
from 0.16% (November 2008) to 0.13% (November 2009), it continues
to have the highest rate of failures compared to other regions

     * Scotland continues to enjoy the lowest rate of business
failures (0.04%).

     * The financial strength of businesses in Yorkshire improved
the most during November (from a financial strength score of 79.39
to 81.40).  Yorkshire was also amongst the regions to have the
lowest rates of failure

     * Businesses in Greater London saw the second highest
improvement in their financial health (from 78.13 to 80.13).
However, London businesses had the lowest overall financial
strength score compared to other regions.

     * As in November 2008, the highest insolvency rates during
November 2009 continued to be among businesses with 11 to 25
employees (0.24%).

     * The smallest rates of insolvencies remained among the
smallest businesses 1 to 2 employees (0.05%).

     * The largest businesses, with over 501 employees, continue
to have the best financial strength score, but were the only types
to see a drop, albeit marginal, in the score (down from 84.83 to
84.61).

     * The worst score in comparison to the other businesses was
held by businesses with 51 to 100 employees (80.40), although they
did see a small year-on-year improvement (from 80.10).

     * The best improvement in the financial strength score from
November 2008 to November 2009 was among businesses with 1 to 2
employees.  These businesses also held the second highest score,
after businesses with 501 employees.

     * The chemical and breweries sectors had the highest
insolvencies rates during November (0.21% each), followed closely
by the postal/telecommunications sector (0.20%).

      * Although the postal/telecommunications sector continues to
hold the worst financial strength score compared to other sectors
(76.59), it was among the top three sectors to see the highest
improvement in its scores since November 2008 (from 74.46).

Key

     [1] The financial strength score predicts the likelihood of a
business failing in the next 12 months, with 100 being the least
likely to default and 1 being the most likely.

     [2] The insolvency rate is calculated by comparing the number
of businesses that failed with the total business population in
Great Britain.


===============
X X X X X X X X
===============


* Chemicals Sector Needs New Strategies to Regain Profitability
---------------------------------------------------------------
A new report by Deloitte, the business advisory firm, shows that
the global chemicals sector has suffered a severe decline in
profitability over the past decade and must evolve to re-gain
profitability.

Analysis of the financial and operational performance of 231
global chemical companies over a ten-year period (1998 to 2008)
shows that profitability has not improved in either the commodity
or speciality chemicals sectors during that period.

Mark Adams, chemicals partner at Deloitte commented: "While the
global chemicals industry has doubled in size since 1999, the
growth rate has slowed over the past five years.  Unless chemical
companies take decisive action to respond to the current
challenges facing the sector, there is a risk that profits will
either stagnate or may even continue to spiral downward.

"The future of the industry is unclear as it emerges from the
downturn with a vast set of challenges.  Planning for a range of
alternative possibilities is critical to ensuring that
profitability returns to the sector.  By analyzing three macro
trends -- economy, regulation and technology -- companies can
strategically plan for the uncertainty ahead and incorporate
adaptive and innovative approaches to achieve sustainable growth."
The report predicts that as the industry prepares for the future,
the commodity sector will focus on preserving cash, managing
excess capacity, and securing access to capital.  The specialities
sector will continue to seek competitive strategies that rely on
understanding customer behavior and offering only the most
profitable products and services, but at increasing levels of
sophistication.  For integrated players new acquisitions will be a
prime growth objective, particularly as a means of moving further
downstream into differentiated businesses.

As chemical companies are broadening their geographic scope,
Western commodity chemical companies will focus on growing
opportunities in the Asia-Pacific region and other areas within
the developing world.  With a small but growing share, the Middle
East has significant potential advantages in low-cost hydrocarbon
feed stocks and therefore continues to attract significant new
capacity.  It is forecast that China and the Middle East will
contribute 78% of new capacity by 2013.  Meanwhile, the chemicals
industry continues to play a key role in the economies of the US
and Europe.

Mr. Adams continued: "The US$3 trillion global chemicals sector is
a significant contributor to the global economy.  While the US and
Europe are the more developed and mature markets, the fast growing
markets in Asia and the Middle East will continue to present major
challenges, as well as some opportunities, for both US and
European participants as we enter the next decade."

A key differentiator for global chemical companies will be
developing and implementing customized growth strategies that have
the flexibility to be altered if unplanned obstacles or openings
arise.  The report identifies three scenarios of how the global
business environment could unfold over the next decade and
explores the implications of each scenario for chemicals
companies.

The scenarios identified include:

     1. Transition.  Western economies suffer inflationary spells
followed by hard landings, while the developing world focuses on
domestic consumption and enjoys steadier growth.  Economic and
energy supply issues are higher priorities than emissions control.

     2. Resilience.  In both developed and developing nations,
growth rebounds as governments play an active role in managing
their economies, directing investment, and promoting national
competitiveness.  Renewable energy and nanotechnology are among
the top areas targeted for support.

     3. Dislocation.  Difficult challenges and heavy-handed
government policies keep growth subdued in the West.  In Asia and
the Middle East, the fall-off in foreign export demand causes an
economic slowdown that leads to social and political unrest.

Mr. Adams concluded: "The chemicals industry must take steps to
ensure that it is prepared for the future, and that company's
business models have the flexibility to deal with challenges as
they arise.  Keeping sight of a range of alternative possibilities
is imperative for effective planning."

Deloitte LLP is the United Kingdom member firm of Deloitte Touche
Tohmatsu, a Swiss Verein, whose member firms are legally separate
and independent entities.


* BOND PRICING: For the Week December 21 to December 25, 2009
-------------------------------------------------------------

Issuer             Coupon   Maturity Currency Price
------             ------   -------- -------- -----

AUSTRIA
-------
HAA-BANK INTL AG    5.250 10/27/2015     EUR  70.25
KOMMUNALKREDIT      0.500  3/15/2019     CAD  63.26
KOMMUNALKREDIT      4.440 12/20/2030     EUR  64.00
KOMMUNALKREDIT      4.900  6/23/2031     EUR  68.38
OESTER VOLKSBK      4.170  7/29/2015     EUR  69.00
OESTER VOLKSBK      5.270   2/8/2027     EUR  92.03
OESTER VOLKSBK      4.810  7/29/2025     EUR  72.63
RAIFF ZENTRALBK     4.500  9/28/2035     EUR  88.07
SAPPI PAPIER HOL    7.500  6/15/2032     USD  54.00
SAPPI PAPIER HOL    7.500  6/15/2032     USD  54.00

BELGIUM
-------
FORTIS BANK         8.750  12/7/2010     EUR  20.87

BULGARIA
--------
PETROL AD-SOFIA     8.375 10/26/2011     EUR  56.61

CZECH REPUBLIC
--------------
CZECH REPUBLIC      2.750  1/16/2036     JPY  64.01

DENMARK
-------
DANMARK SKIBSKRD    2.000 11/15/2024     DKK  72.04

FINLAND
-------
MUNI FINANCE PLC    1.000 11/21/2016     NZD  69.60
MUNI FINANCE PLC    0.250  6/28/2040     CAD  20.04
MUNI FINANCE PLC    1.000 10/30/2017     AUD  64.18
MUNI FINANCE PLC    1.000  2/27/2018     AUD  62.99
MUNI FINANCE PLC    0.500  9/24/2020     CAD  58.39
MUNI FINANCE PLC    0.500  3/17/2025     CAD  44.33

FRANCE
------
AIR FRANCE-KLM      4.970   4/1/2015     EUR  15.23
ALCATEL SA          4.750   1/1/2011     EUR  16.51
ALCATEL-LUCENT      5.000   1/1/2015     EUR   3.45
ALTRAN TECHNOLOG    6.720   1/1/2015     EUR   4.60
ATOS ORIGIN SA      2.500   1/1/2016     EUR  49.38
CALYON              6.000  6/18/2047     EUR  41.72
CAP GEMINI SA       2.500   1/1/2010     EUR  51.99
CAP GEMINI SOGET    1.000   1/1/2012     EUR  43.61
CAP GEMINI SOGET    3.500   1/1/2014     EUR  43.66
CLUB MEDITERRANE    4.375  11/1/2010     EUR  48.54
DEXIA MUNI AGNCY    4.680   3/9/2029     CAD  74.22
EURAZEO             6.250  6/10/2014     EUR  56.40
FAURECIA            4.500   1/1/2015     EUR  18.54
GIE PSA TRESORER    6.000  9/19/2033     EUR  81.30
GROUPE VIAL         2.500   1/1/2014     EUR  23.87
MAUREL & PROM       3.500   1/1/2010     EUR  22.81
MAUREL ET PROM      7.125  7/31/2014     EUR  18.08
NEXANS SA           4.000   1/1/2016     EUR  62.45
PEUGEOT SA          4.450   1/1/2016     EUR  31.40
PUBLICIS GROUPE     1.000  1/18/2018     EUR  45.26
PUBLICIS GROUPE     3.125  7/30/2014     EUR  36.61
RHODIA SA           0.500   1/1/2014     EUR  42.44
SCOR SA             4.125   1/1/2010     EUR   2.09
SOC AIR FRANCE      2.750   4/1/2020     EUR  20.75
SOITEC              6.250   9/9/2014     EUR  10.82
TEM                 4.250   1/1/2015     EUR  59.52
THEOLIA             2.000   1/1/2014     EUR  11.85
VALEO               2.375   1/1/2011     EUR  46.48
ZLOMREX INT FIN     8.500   2/1/2014     EUR  33.50
ZLOMREX INT FIN     8.500   2/1/2014     EUR  33.50

GERMANY
-------
DEUTSCHE BK LOND    1.000  3/31/2027     USD  44.39
ESCADA AG           7.500   4/1/2012     EUR  14.24
EUROHYPO AG         5.000  5/15/2027     EUR  92.26
GOTHAER ALLG VER    5.527  9/29/2026     EUR  75.06
HSH NORDBANK AG     4.375  2/14/2017     EUR  62.42
IKB DEUT INDUSTR    4.500   7/9/2013     EUR  74.84
L-BANK FOERDERBK    0.500  5/10/2027     CAD  42.57
LB BADEN-WUERTT     2.500  1/30/2034     EUR  58.24
LB BADEN-WUERTT     5.250 10/20/2015     EUR  34.65
RENTENBANK          1.000  3/29/2017     NZD  68.92
SOLON AG SOLAR      1.375  12/6/2012     EUR  37.14
TUI AG              5.500 11/17/2014     EUR  67.46
TUI AG              2.750   9/1/2012     EUR  73.47
VAC FINANZ          9.250  4/15/2016     EUR  51.38
VAC FINANZ          9.250  4/15/2016     EUR  51.38

GREECE
------
HELLENIC REP I/L    2.300  7/25/2030     EUR  70.80
YIOULA GLASSWORK    9.000  12/1/2015     EUR  54.50
YIOULA GLASSWORK    9.000  12/1/2015     EUR  54.50

HUNGARY
-------
REP OF HUNGARY      2.110 10/26/2017     JPY  72.50

IRELAND
-------
ALLIED IRISH BKS    5.250  3/10/2025     GBP  62.00
ALLIED IRISH BKS    5.625 11/29/2030     GBP  60.00
DEPFA ACS BANK      0.500   3/3/2025     CAD  29.21
DEPFA ACS BANK      5.125  3/16/2037     USD  76.16
DEPFA ACS BANK      5.125  3/16/2037     USD  69.93
DEPFA ACS BANK      5.250  3/31/2025     CAD  71.80
DEPFA ACS BANK      4.900  8/24/2035     CAD  60.67
IRISH NATIONWIDE    5.500  1/10/2018     GBP  37.40
IRISH NATIONWIDE   13.000  8/12/2016     GBP  61.92
UT2 FUNDING PLC     5.321  6/30/2016     EUR  63.48

ITALY
-----
CIR SPA             5.750 12/16/2024     EUR  76.94
COMUNE DI MILANO    4.019  6/29/2035     EUR  73.96
ROMULUS FINANCE     5.441  2/20/2023     GBP  70.93
UNICREDITO ITALI    5.668  2/15/2035     EUR  73.85

LUXEMBOURG
----------
ARCELORMITTAL       7.250   4/1/2014     EUR  35.85
BREEZE              4.524  4/19/2027     EUR  82.96
CRC BREEZE          5.290   5/8/2026     EUR  74.43
LIGHTHOUSE INTL     8.000  4/30/2014     EUR  63.58
LIGHTHOUSE INTL     8.000  4/30/2014     EUR  63.56
ORCO PROPERTY GR    1.000  5/31/2013     EUR  32.95
TALANX FINANZ       4.500  6/30/2025     EUR  80.79

NETHERLANDS
-----------
ABN AMRO BANK NV    7.540  6/29/2035     EUR  65.75
ABN AMRO BANK NV    6.000  3/16/2035     EUR  65.50
AI FINANCE B.V.    10.875  7/15/2012     USD  53.63
AIR BERLIN FINAN    1.500  4/11/2027     EUR  68.62
ALB FINANCE BV      9.000 11/22/2010     USD  28.99
ALB FINANCE BV      9.250  9/25/2013     USD  28.95
ALB FINANCE BV      9.750  2/14/2011     GBP  28.49
ALB FINANCE BV      7.875   2/1/2012     EUR  28.47
ALB FINANCE BV      8.750  4/20/2011     USD  28.98
ARPENI PR INVEST    8.750   5/3/2013     USD  54.50
ARPENI PR INVEST    8.750   5/3/2013     USD  54.50
BK NED GEMEENTEN    0.500  6/27/2018     CAD  68.28
BK NED GEMEENTEN    0.500  2/24/2025     CAD  46.84
BLT FINANCE BV      7.500  5/15/2014     USD  60.38
BLT FINANCE BV      7.500  5/15/2014     USD  60.50
BRIT INSURANCE      6.625  12/9/2030     GBP  70.00
BSP FINANCE BV     10.750  11/1/2011     USD  73.25
ELEC DE CAR FIN     8.500  4/10/2018     USD  63.75
EM.TV FINANCE BV    5.250   5/8/2013     EUR   4.24
IVG FINANCE BV      1.750  3/29/2017     EUR  65.83
KAZKOMMERTS FIN     8.500  6/13/2017     USD  74.63
KAZKOMMERTS FIN     8.625  7/27/2016     USD  75.92
KAZKOMMERTS INTL    6.875  2/13/2017     EUR  77.00
NATL INVESTER BK   25.983   5/7/2029     EUR  34.87
NED WATERSCHAPBK    0.500  3/11/2025     CAD  45.52
NXP BV/NXP FUNDI    8.625 10/15/2015     EUR  67.50
NXP BV/NXP FUNDI    8.625 10/15/2015     EUR  72.88
NXP BV/NXP FUNDI    8.625 10/15/2015     EUR  73.67
Q-CELLS INTERNAT    5.750  5/26/2014     EUR  66.02
Q-CELLS INTERNAT    1.375  2/28/2012     EUR  58.53
TEMIR CAPITAL       9.500  5/21/2014     USD  25.00
TEMIR CAPITAL       9.000 11/24/2011     USD  17.75
TJIWI KIMIA FIN    13.250   8/1/2001     USD   0.01
TURANALEM FIN BV    7.750  4/25/2013     USD  35.41
TURANALEM FIN BV    7.875   6/2/2010     USD  35.99
TURANALEM FIN BV    8.000  3/24/2014     USD  34.75
TURANALEM FIN BV    8.500  2/10/2015     USD  35.94

NORWAY
------
EKSPORTFINANS       0.500   5/9/2030     CAD  36.56
NORSKE SKOGIND      7.000  6/26/2017     EUR  67.31

POLAND
------
POLAND GOVT BOND    3.300  6/16/2038     JPY  70.68
POLAND-REGD-RSTA    2.810 11/16/2037     JPY  63.19
REP OF POLAND       4.250  7/20/2055     EUR  70.54
REP OF POLAND       2.648  3/29/2034     JPY  63.93
REP OF POLAND       3.220   8/4/2034     JPY  72.87
REP OF POLAND       2.620 11/13/2026     JPY  76.65

SPAIN
-----
BANCAJA EMI SA      2.755  5/11/2037     JPY  65.31
GENERAL DE ALQUI    2.750  8/20/2012     EUR  57.20
MINICENTRALES       4.810 11/29/2034     EUR  62.60

SWEDEN
------
SWEDISH EXP CRED    0.500 12/17/2027     USD  47.56

SWITZERLAND
-----------
CYTOS BIOTECH       2.875  2/20/2012     CHF  51.07
UBS AG JERSEY       3.220  7/31/2012     EUR  66.91
UBS AG JERSEY       9.350  9/21/2011     USD  66.84
UBS AG JERSEY      11.150  8/31/2011     USD  36.14
UBS AG JERSEY      10.360  8/19/2011     USD  52.79
UBS AG JERSEY      10.280  8/19/2011     USD  33.99
UBS AG JERSEY      13.000  6/16/2011     USD  47.94
UBS AG JERSEY      10.650  4/29/2011     USD  16.22
UBS AG JERSEY      11.030  4/21/2011     USD  21.66
UBS AG JERSEY      10.820  4/21/2011     USD  22.37
UBS AG JERSEY      16.160  3/31/2011     USD  45.46
UBS AG JERSEY      11.330  3/18/2011     USD  18.35
UBS AG JERSEY      15.250  2/11/2011     USD  12.35
UBS AG JERSEY      10.000  2/11/2011     USD  60.69
UBS AG JERSEY      16.170  1/31/2011     USD  13.81
UBS AG JERSEY      14.640  1/31/2011     USD  38.78
UBS AG JERSEY      13.900  1/31/2011     USD  36.77
UBS AG LONDON       1.500  6/19/2018     JPY  66.00

UKRAINE
-------
UKRAINE GOVT        4.950 10/13/2015     EUR  71.46
UKRAINE GOVT        6.580 11/21/2016     USD  76.22
UKRAINE GOVT        4.950 10/13/2015     EUR  70.87

UNITED KINGDOM
--------------
ALPHA CREDIT GRP    2.940   3/4/2035     JPY  69.94
BANK OF SCOTLAND    2.359  3/27/2029     JPY  73.22
BARCLAYS BK PLC     7.610  6/30/2011     USD  53.71
BARCLAYS BK PLC    10.600  7/21/2011     USD  40.34
BARCLAYS BK PLC    11.650  5/20/2010     USD  41.13
BRADFORD&BIN BLD    2.875 10/16/2031     CHF  74.21
BRADFORD&BIN BLD    5.750 12/12/2022     GBP   8.50
BRADFORD&BIN BLD    4.910   2/1/2047     EUR  71.85
BROADGATE FINANC    5.098   4/5/2033     GBP  71.92
CATTLES PLC         7.875  1/17/2014     GBP   8.38
CO-OPERATIVE BNK    5.875  3/28/2033     GBP  74.32
EFG HELLAS PLC      2.760  5/11/2035     JPY  66.76
ENTERPRISE INNS     6.875   5/9/2025     GBP  75.35
ENTERPRISE INNS     6.375  9/26/2031     GBP  72.12
ENTERPRISE INNS     6.875  2/15/2021     GBP  78.63
ENTERPRISE INNS     6.500  12/6/2018     GBP  81.16
EXIM OF UKRAINE     8.400   2/9/2016     USD  72.49
F&C ASSET MNGMT     6.750 12/20/2026     GBP  67.64
GREENE KING FIN     5.702 12/15/2034     GBP  70.89
HBOS PLC            4.500  3/18/2030     EUR  68.97
INEOS GRP HLDG      7.875  2/15/2016     EUR  63.50
INEOS GRP HLDG      7.875  2/15/2016     EUR  64.03
KENSINGTON GROUP    9.000 12/21/2015     GBP  62.25
LBG CAPITAL NO.1    6.439  5/23/2020     EUR  74.65
LBG CAPITAL NO.1    7.975  9/15/2024     GBP  76.50
LBG CAPITAL NO.2    6.385  5/12/2020     EUR  74.55
MARSTONS ISSUER     5.641  7/15/2035     GBP  71.33
NATL GRID GAS       1.754 10/17/2036     GBP  47.51
NATL GRID GAS       1.771  3/30/2037     GBP  46.04
NBG FINANCE PLC     2.755  6/28/2035     JPY  66.51
NOMURA INTL PLC     0.800 12/21/2020     EUR  58.18
NORTHERN ROCK       9.375 10/17/2021     GBP  60.50
NORTHERN ROCK       5.750  2/28/2017     GBP  55.50
PRINCIPALITY BLD    5.375   7/8/2016     GBP  50.25
PRIVATBANK          8.000   2/6/2012     USD  75.25
PRIVATBANK          8.750   2/9/2016     USD  67.25
PUNCH TAVERNS       7.567  4/15/2026     GBP  73.44
PUNCH TAVERNS       6.468  4/15/2033     GBP  69.43
ROYAL BK SCOTLND    4.625  9/22/2021     EUR  76.79
ROYAL BK SCOTLND    4.700   7/3/2018     USD  66.00
SPIRIT ISSUER       5.472 12/28/2028     GBP  71.00
TELEREAL SECUR      5.425 12/10/2031     GBP  74.71
UNIQUE PUB FIN      7.395  3/28/2024     GBP  71.85
UNIQUE PUB FIN      6.464  3/30/2032     GBP  58.72
WESSEX WATER FIN    1.369  7/31/2057     GBP  20.69


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.

                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine
C. Tumanda, Joy A. Agravante and Peter A. Chapman, Editors.

Copyright 2009.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *