TCREUR_Public/091230.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, December 30, 2009, Vol. 10, No. 256

                            Headlines



F R A N C E

RODRIGUEZ GROUP: Postpones Extraordinary Shareholders Meeting


G E R M A N Y

FNDS3000 CORP: Recurring Losses Prompt Going Concern Doubt


H U N G A R Y

* HUNGARY: Building Industry Bankruptcies Hit Record Level


I C E L A N D

* ICELAND: May Reject Icesave Bill; Fitch May Cut Rating


I R E L A N D

ADAGIO III: Moody's Junks Rating on EUR17.5M Class E Notes
NASH POINT: Moody's Confirms 'Caa2' Rating on Class E Notes
* IRELAND: Companies in Examinership Can Repudiate Leases


L U X E M B O U R G

MILLICOM INTERNATIONAL: Moody's Affirms 'Ba2' Corp. Family Rating


N E T H E R L A N D S

COUGAR CLO: Moody's Downgrades Rating on EUR45 Mln Class B Notes
EURO GALAXY: Moody's Corrects Ratings on 11 Classes of Notes
GRESHAM CAPITAL: Moody's Cuts Rating on Class F Notes to 'Ca'
HIGHLANDER EURO: Moody's Junks Ratings on Two Classes of Notes
ORYX EUROPEAN: Moody's Confirms Rating on Class D Notes at 'B1'

PROSPERO CLO: Moody's Junks Rating on US$7.7 Mln Class D Notes


R U S S I A

YUKOS OIL: High Court Finds Shareholder's Arrest Illegal


S P A I N

AYT CAIXA: Fitch Junks Rating on EUR24.5 Mln Class D Notes
AYT FTPYME: Fitch Downgrades Rating on Class F3 Notes to 'BB'
BANESTO: Santander CEO Sanz Found Guilty of False Accusation
CAJA CIRCULO: Fitch Affirms Ratings on Class D Notes at 'B'
CAJA MURCIA: Fitch Downgrades Ratings on Class D Notes to 'B'

IM PASTOR: S&P Downgrades Ratings on Class B Notes to 'BB'
LTR FINANCE: Moody's Downgrades Ratings on Class D Notes to 'B3'
LTR WAREHOUSE: Moody's Lowers Rating on Class B Notes to 'Ba1'


T U R K E Y

ALTERNATIFBANK A.S.: Fitch Affirms Individual Rating at 'D'
BANKPOZITIF KREDI: Fitch Affirms Individual Rating at 'D'
CALIK HOLDING: Fitch Revises National Ratings After Recalibration
KUVEYT TURK: Fitch Affirms Individual Rating at 'D'
SEKERBANK TAS: Fitch Affirms Individual Rating at 'D'

TURKIYE KALKINMA: Fitch Affirms Individual Rating at 'D'
TURKLAND BANK: Fitch Affirms Individual Rating at 'D'


U K R A I N E

KHARKIVMETROBUD OJSC: SPF to Sell Stake at March 2010 Auction
UKRAINIAN FOOD: Kyiv Court Opens Bankruptcy Proceedings


U N I T E D   K I N G D O M

CORNERSTONE TITAN: Fitch Cuts Rating on Class D Notes to 'BB'
JONGLEURS: To Reopen After Owners Ditched GBP100 Mln Debt
NAC EUROLOAN: Moody's Cuts Rating on Class C Notes to 'Ba2'
NORTHERN ROCK: Shareholders' Compensation Appeal Rejected
SAPHIR FINANCE: Moody's Withdraws 'B3' Rating on 2006-9 Notes

* UK: Corporate Bankruptcies Reach 27,000, Research Shows
* UK: John Moulton Expects Increase in Number of Distressed Firms




                         *********


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


RODRIGUEZ GROUP: Postpones Extraordinary Shareholders Meeting
-------------------------------------------------------------
David Whitehouse at Bloomberg News, citing Wansquare, reports that
Rodriguez Group SA, which is under creditor protection, has
postponed its extraordinary shareholders meeting scheduled for
Jan. 5 after auditors refused to certify its accounts.

Rodriguez Group SA -- http://www.rodriguezgroup.com/-- is a
France-based company focused on holding stakes in companies
engaged in the manufacture of luxury yachts.  It operates through
its subsidiaries and dependant companies, including SAS G.
Rodriguez, SA Le Yacht and SA SNP Boat Service, SA Camper &
Nicholsons Intl, SNP Boat Service Italia and SNP Boat Service
Espana, among others.  The group offers various types of boats,
such as Leopard and Mangusta, as well as pre-owned yachts sales.
The Company also provides a range of services, such as maintenance
and repair, charter and organization of cruises, yacht management
and crew placement, as well as docking service and technical
assistance.  Rodriguez Group SA is present in France, the United
States, Spain and Tunisia, among others


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


FNDS3000 CORP: Recurring Losses Prompt Going Concern Doubt
----------------------------------------------------------
L.L. Bradford & Company, LLC, in Las Vegas, expressed substantial
doubt about FNDS Corp.'s ability to continue as a going concern
after auditing the Company's consolidated financial statements as
of and for the year ended August 31, 2009.

"The Company has suffered losses from operations and current
liabilities exceed current assets, all of which raise substantial
doubt about its ability to continue as a going concern."

The Company reported a net loss of US$5,677,725 on net revenues of
US$88,981 for the year ended August 31, 2009, compared with a net
loss of US$3,476,035 on net revenues of US$25,931 for the previous
fiscal period.

The Company's loss from continuing operations for the fiscal years
ended August 31, 2009, and 2008, was US$4,203,903 and
US$3,144,994, respectively.  Since inception, the Company has
financed its operations primarily through private sales of
securities.  As of August 31, 2009, the Company had US$403,990 in
cash, and a working capital deficit of US$1,002,116.

Total operating expense for the fiscal years ended August 31,
2009, and 2008, was US$4,018,053 and US$3,131,693, respectively.

                          Balance Sheet

At August 31, 2009, the Company's consolidated balance sheets
showed US$2,118,558 in total assets, total liabilities of
US$1,504,989, and total stockholders' equity of US$613,569.

The Company's consolidated balance sheets at August 31, 2009, also
showed strained liquidity with US$502,873 in total current assets
available to pay US$1,504,989 in total current liabilities.

A full-text copy of the Company's Form 10-K is available at no
charge at http://researcharchives.com/t/s?4c89

                       About FNDS3000 Corp.

Based in Jacksonville, Fla., FNDS3000 Corp. (OTC Bulletin Board:
FDTC) (Frankfurt: "FT4" A0MWLG) -- http://www.fnds3000.com/-- was
incorporated under the laws of the state of Delaware on
January 24, 2006.  The Company is a financial transaction-
processing company that provides prepaid reloadable cards through
strategically aligned distributors to corporate customers in
cooperation with financial institutions in South Africa.  Since
its inception, its focus has been on the development and
implementation of a variety of prepaid card programs outside the
United States, including services to individuals who lack access
to conventional banking services.

The Company's initial concentration is on the South African
market, where the Company has located its operations which will
then service other EMEA (Europe, Middle East and Africa) markets.


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


* HUNGARY: Building Industry Bankruptcies Hit Record Level
----------------------------------------------------------
People's Daily reports that KPMG said the number of Hungarian
building industry companies filing for bankruptcy exceeded 300 in
November for the third month this year, while overall failures
exceeded 3,000 in 2009, an all-time record.

Despite a slight rise in performance in October, the construction
industry in the country was producing less than two years ago, the
report says, citing KPMG, which issued an analysis on Dec. 18.

The report relates KPMG noted and warned that many more
construction businesses may have to close despite an overall rise
in orders.


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


* ICELAND: May Reject Icesave Bill; Fitch May Cut Rating
--------------------------------------------------------
Bloomberg News says Iceland's parliament may reject the Icesave
agreement for a second time in a move that would sour relations
with the U.K. and Netherlands.

According to Bloomberg, party leaders said all 28 opposition
lawmakers in the 63-seat parliament will try to block the bill,
which obliges Iceland to cover the depositor claims using borrowed
funds from the U.K. and Netherlands,

Bloomberg disclosed the depositor accord, which polls show almost
70% of Icelanders oppose, is the last milestone the government
must reach to repair international relations.

Bloomberg noted Deputy Chairman of the budget committee Bjorn
Valur Gislason said in a Dec. 17 interview the third and final
debate will take place before the New Year.

According to Bloomberg, Fitch Ratings has signaled failure to pass
the foreign depositor bill will weaken the sovereign's credit
grade.  Fitch ranks Iceland BBB-, one notch above junk.

Bloomberg related Fitch senior analyst Paul Rawkins said in an
Oct. 21 interview settling claims stemming from Icesave, as the
deposit accounts were known, is "key to everything else" and needs
to be "resolved pretty shortly."

Bloomberg said the Icesave bill has received more media attention
than the island's other creditor disputes after the failure of
Iceland's banking system last year meant thousands of U.K. and
Dutch depositors risked losing their life savings.  The U.K.
deployed anti-terror legislation to freeze Icelandic assets as
uncertainty about cross border banking rules left doubts about
which country should bear the cost of covering the claims,
Bloomberg recalled.


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


ADAGIO III: Moody's Junks Rating on EUR17.5M Class E Notes
----------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Adagio III CLO PLC.  Given that this is a relatively
well-performing CLO, the Class A1A notes remain Aaa.

  -- EUR38.3M Class A1B Senior Floating Rate Notes due 2022,
     Downgraded to Aa2; previously on Mar 4, 2009 Aa1 Placed Under
     Review for Possible Downgrade

  -- EUR150M Class A3 Senior Floating Rate Notes due 2022,
     Downgraded to Aa1; previously on Feb 2, 2007 Assigned Aaa

  -- EUR25.8M Class B Senior Floating Rate Notes due 2022,
     Downgraded to A3; previously on Mar 4, 2009 Aa2 Placed Under
     Review for Possible Downgrade

  -- EUR31.5M Class C Senior Subordinated Deferrable Floating Rate
     Notes due 2022, Downgraded to Baa3; previously on Mar 4, 2009
     A2 Placed Under Review for Possible Downgrade

  -- EUR28.5M Class D Senior Subordinated Deferrable Floating Rate
     Notes due 2022, Downgraded to B1; previously on Mar 4, 2009
     Baa3 Placed Under Review for Possible Downgrade

  -- EUR17.5M Class E Senior Subordinated Deferrable Floating Rate
     Notes due 2022, Downgraded to Caa3; previously on Mar 4, 2009
     Ba3 Placed Under Review for Possible Downgrade

  -- EUR6M Class W Combination Notes due 2022, Downgraded to Baa3;
     previously on Mar 4, 2009 Baa1 Placed Under Review for
     Possible Downgrade

  -- EUR10M Class Y Combination Notes due 2022, Downgraded to Ba1;
     previously on Mar 4, 2009 Baa2 Placed Under Review for
     Possible Downgrade

  -- EUR10M Class Z Combination Notes due 2022, Downgraded to Ba1;
     previously on Mar 4, 2009 Baa1 Placed Under Review for
     Possible Downgrade

Moody's has withdrawn the rating assigned to the EUR9.25M Class X
Combination Notes.  These notes were split back into their
original components and thus are no longer outstanding under
Combination notes format.

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans.  The Portfolio Manager uses CDOROM as a managing
tool together with other management criteria which include a
weighted average life test and a weighted average spread test.

According to Moody's, the rating actions taken on the notes take
into account moderate credit deterioration of the underlying
portfolio.  This is observed through the average credit rating as
measured through the portfolio weighted average rating factor
'WARF' (currently 2571), the amount of defaulted securities
(currently 2.8% of the portfolio), the proportion of securities
from issuers rated Caa1 and below (currently 11.8% of the
portfolio), and a slight deterioration of the par value tests.
Currently all par value tests are in compliance.  However Moody's
notes that, unlike the majority of European CLOs, the calculation
of the par value tests would include haircuts on Caa assets only
if certain conditions are met, which is not the case currently.
These measures were taken from the recent trustee report dated 30
November 2009.  Moody's also performed a number of sensitivity
analyses, including consideration of a further decline in
portfolio WARF.  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.

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.

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


NASH POINT: Moody's Confirms 'Caa2' Rating on Class E Notes
-----------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Nash Point CLO.

  -- EUR428.5M Class A Senior Secured Floating Rate Notes due
     2022, Downgraded to Aa1; previously on Jul 28, 2006 Assigned
     Aaa

  -- EUR35M Class B Senior Secured Floating Rate Notes due 2022,
     Downgraded to Baa1; previously on Mar 4, 2009 Aa2 Placed
     Under Review for Possible Downgrade

  -- EUR35M Class C Senior Secured Deferrable Floating Rate Notes
     due 2022, Downgraded to Ba2; previously on Mar 19, 2009
     Downgraded to Ba1 and Remained On Review for Possible
     Downgrade

  -- EUR17.5M Class D Senior Secured Deferrable Floating Rate
     Notes due 2022, Downgraded to B2; previously on Mar 19, 2009
     Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- EUR22.5M Class E Senior Secured Deferrable Floating Rate
     Notes due 2022, Confirmed at Caa2; previously on Mar 19, 2009
     Downgraded to Caa2 and Remained On 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 a 5.6% exposure to high yield bonds and
a 11.2% exposure to mezzanine loans.

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 3008 versus a trigger of 2800), an increase in
the amount of defaulted securities (currently 7.8% of the
portfolio), and the proportion of securities from issuers rated
Caa1 and below (currently 8.77% of the portfolio).  These measures
were taken from the recent trustee report dated 12 November 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.


* IRELAND: Companies in Examinership Can Repudiate Leases
---------------------------------------------------------
Barry O'Halloran at The Irish Times reports that a Supreme Court
ruling in the Linen Supply of Ireland case means that companies in
examinership can repudiate leases.

The report relates in that case, examiner Kieran Wallace of KPMG
wanted to cut overheads and secure better rental terms by
repudiating leases on five properties operated by branches of the
company.

The High Court originally ruled that it could not do so, but the
Supreme Court subsequently stated that leases are contracts within
the meaning of the examinership legislation, and could thus be
repudiated, the report notes.

According to the report, lawyers say the issue is particularly
important to retail businesses where repudiating leases on
branches that are not making money is central to rescuing the
overall business from insolvency.


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


MILLICOM INTERNATIONAL: Moody's Affirms 'Ba2' Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Millicom
International Cellular, and changed the outlook to positive from
stable.  Relevant ratings are the Ba2 corporate family rating and
probability of default rating, and the B1 rating of the company's
US$460 million senior notes.

The change in outlook incorporates Millicom's transition to
generating positive free cash flow, achieved during a difficult
economic environment, and which Moody's expects will be sustained
even after the initiation of dividend payments.  It also reflects
Moody's view that, notwithstanding ongoing uncertainty over the
use of proceeds following various Asian disposals, the company
will manage its reported net debt/Ebitda at around 1x.
Furthermore, Moody's anticipates that the group will maintain a
solid liquidity profile, including high levels of cash balances
available at the parent.

Millicom has successfully implemented its strategy in recent years
in various Central American and South American countries.  It has
benefited from the ongoing mobile and broadband penetration trends
in those countries, and achieved strong market shares that have
helped improve scale, profitability and capital efficiency.  The
increase in the subscriber base has helped offset the decrease in
ARPU driven by the global recession.  The company has nearly
completed divesting its Asian assets, and is expanding in various
African countries.

Millicom turned free cash flow positive for the first time in
2009, generating US$232 million in the nine months through
September.  This was mainly due to capex/revenue falling to 24%
(from 41% in 2008).  This improvement reflects the reduced
investments related to coverage, which peaked in 2008, as well as
the company's focus on capital efficiency.  Cash flow generation
was also helped by some improvement in reported Ebitda margin (now
at 45%) and lower interest rates.  Millicom recently announced
initiation of dividend payments, at not less than 25% of net
income.  However, ARPU erosion has slowed down in the last two
quarters, and the company has indicated that capex/revenue in 2010
should be 20-25%.  Hence Moody's expects that the group will
remain free cash flow positive going forward.

Although Millicom's public guidance on leverage is net debt/Ebitda
of 2x, Moody's believes that the company will look to manage this
ratio at around 1x.  The ratio is currently about 0.9x, without
factoring in the proceeds from Asian disposals.  There remains
material uncertainty over the use of proceeds from those disposals
-- with potential options including M&A activity, distributions to
shareholders and debt purchases.  However, the change in outlook
reflects Moody's view that the company intends to operate within
the tighter financial parameters irrespective of the decision.

Millicom has a strong liquidity profile.  In addition to its free
cash flow generation, it reported US$873 million cash at 30
September 2009 -- and the disposal of its Asian assets should
result in a cash inflow in excess of US$500 million.  The
company's US$460 million bonds -- maturing in January 2013 -- are
the only debt at the parent level.  Millicom currently does not
have a corporate bank revolver, and most group debt is raised (in
local currency, where feasible) by the local operating companies.
Moody's understands that over 60% of local debt is denominated in
local currencies; and that headroom is comfortable on material
subsidiaries that have financial covenants.

Despite the recent improvements during a difficult economic
period, Moody's recognizes that Millicom's risk profile remains
impacted by its countries of operation -- which are mostly low-
income, either unrated or with non-investment grade sovereign
ratings.  Emerging market risk will remain a material rating
factor as Moody's considers the impact of other possible positive
changes to the company's credit profile.

The last credit rating announcement for Millicom was on
November 14, 2007, when the corporate family rating was upgraded
to Ba2 with stable outlook.

Millicom is a mobile operator present in 12 countries in Latin
America and Africa.  The company generated US$2.3 billion in
revenue and US$1.1 billion in reported Ebitda for the first nine
months of 2009.


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


COUGAR CLO: Moody's Downgrades Rating on EUR45 Mln Class B Notes
----------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Cougar CLO II B.V.:

  -- EUR124,300,000 Class A Senior Secured Floating Rate Notes
     due 2025, Downgraded to Aa3; previously on May 21, 2007
     Definitive Rating Assigned Aaa

  -- EUR45,000,000 Class B Subordinated Floating Rate Notes due
     2025(current balance of EUR43,264,367), Downgraded to B3;
     previously on March 4, 2009 Baa3 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 (currently
17%).

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 2707), an increase in the proportion of
securities from issuers rated Caa1 and below (currently 9.5% of
the portfolio), and a deterioration of the Class A par coverage
test from 128.7% in March 2009 to 126.6% in November 2009.  These
measures were taken from the recent trustee report dated 20
November 2009.  Moody's also performed a number of sensitivity
analyses, including consideration of a further decline in
portfolio WARF quality.

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


EURO GALAXY: Moody's Corrects Ratings on 11 Classes of Notes
------------------------------------------------------------
On October 25, 2006, Moody's assigned a rating of Aa2 to
Euro 14,000,000 Class P Combination Notes due 2021 of Euro Galaxy
CLO B.V.  Moody's subsequently placed the Class P on Review for
Possible Downgrade on 4 March 2009 and then downgraded to Baa2 on
10 December 2009.

The original press release mistakenly characterized the coupon
interest applicable to the Class P Combination Notes, stating that
the rating of these Notes addresses the expected loss posed to
investors by the legal final maturity in October 2021 as a
proportion of the Rated Balance and of the Rated Coupon, where the
Rated Balance is equal, at any time, to the principal amount of
the Class P Combination Notes on the closing date plus a Rated
Coupon of 3-Months Euribor plus 1.50% per annum applied on the
outstanding Rated Balance minus the aggregate of all payments made
from the closing date to such date, either through interest or
principal payments.  In fact, the coupon interest applicable to
the Class P Combination Notes is a fixed rate of 1.50% per annum,
and the text of the press release has been corrected accordingly.

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, non-Euro senior secured loans, second-lien loans,
high-yield bonds, and mezzanine loans.

The complete text of the corrected press release is:

Moody's has assigned definitive credit ratings to eleven classes
of notes issued by Euro Galaxy CLO B.V., a Dutch special purpose
company.  The ratings are:

  -- Aaa to the Euro 88,000,000 Class A-1 Senior Floating Rate
     Notes due 2021

  -- Aaa to the Euro 178,500,000 Class A-2 Senior Floating Rate
     Delayed Draw Notes due 2021

  -- Aa2 to the Euro 16,000,000 Class B-1 Senior Floating Rate
     Notes due 2021

  -- Aa2 to the Euro 12,000,000 Class B-2 Senior Fixed Rate Notes
     due 2021

  -- A2 to the Euro 24,500,000 Class C Deferrable Interest
     Floating Rate Notes due 2021

  -- Baa2 to the Euro 14,000,000 Class D Deferrable Interest
     Floating Rate Notes due 2021

  -- Ba2 to the Euro 13,500,000 Class E Deferrable Interest
     Floating Rate Notes due 2021

  -- Aa2 to the Euro 14,000,000 Class P Combination Notes due 2021

  -- Ba1 to the Euro 4,000,000 Class Q Combination Notes due 2021

  -- Baa2 to the Euro 3,500,000 Class R Combination Notes due 2021

  -- Aaa to the Euro 8,275,000 Class S Combination Notes due 2021

  -- Euro 36,500,000 Class F Subordinated Notes due 2021 have also
     been issued but are not be rated by Moody's.

The ratings address the expected loss posed to investors by the
legal final maturity in October 2021.

The ratings of the Class Q Combination Notes, Class R Combination
Notes and Class S Combination Notes address the expected loss
posed to investors by the legal final maturity in October 2021 as
a proportion of the Rated Balance, where the "Rated Balance" is
equal, at any time, to the principal amount of such Combination
Notes on the Issue Date (being respectively Euro 4,000,000 for
Class Q, Euro 3,500,000 for Class R, Euro 8,275,000 for Class S)
minus the aggregate of all payments made from the issue date to
such date, either through interest or principal payments.  It is
not an opinion about the ability of the issuer to pay interest.

The rating of the Class P Combination Notes addresses the expected
loss posed to investors by the legal final maturity in October
2021 as a proportion of the Rated Balance and of the Rated Coupon,
where the Rated Balance is equal, at any time, to the principal
amount of the Class P Combination Notes on the closing date plus a
Rated Coupon of a fixed rate of 1.50% per annum applied on the
outstanding Rated Balance minus the aggregate of all payments made
from the closing date to such date, either through interest or
principal payments.

Moody's ratings address only the credit risks associated with the
transaction.  Other non-credit risks, such as those associated
with the timing of principal prepayments and other market risks,
have not been addressed and may have a significant effect on yield
to investors.

These definitive ratings are based upon:

1. An assessment of the eligibility criteria and portfolio
   guidelines applicable to the future additions to the portfolio;

2. The protection against losses through the subordination of the
   more junior classes of notes to the more senior classes of
   notes;

3. The overcollateralisation of the Notes;

4. The proposed currency swap transactions, which insulate the
   Issuer from the volatility of the foreign currency exchange
   rates in respect of non-Euro denominated obligations; and the
   proposed interest rate swap transactions, which substantially
   mitigate the risk to the Issuer from the potential
   fixed/floating interest mismatch between the collateral
   portfolio and the Notes;

5. The expertise of AIG Global Investment Corp. (Europe) Ltd as a
   collateral manager; and

6. The legal and structural integrity of the issue.

This transaction is a high yield collateralized loan obligation
related to a collateral portfolio of approximately EUR375 million,
comprised primarily of European senior and mezzanine loans (with a
predominance of senior secured loans) and high yield bonds.  This
portfolio is dynamically managed by AIG Global Investment Corp.
(Europe) Ltd. This portfolio will be partially acquired at closing
date and partially during the 9 months ramp-up period in
compliance with portfolio guidelines (which include, among other
tests, a diversity score test, a weighted average rating factor
test and a weighted average spread test).  Thereafter, the
portfolio of loans will be actively managed and the portfolio
manager will have the option to buy or sell assets in the
portfolio.  Any addition or removal of assets will be subject to a
number of portfolio criteria.

The transaction is arranged by Morgan Stanley.


GRESHAM CAPITAL: Moody's Cuts Rating on Class F Notes to 'Ca'
-------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Gresham Capital CLO III B.V.  The Class A-1E, Class A-1S
and Class A-1R Notes remain Aaa mainly due to the current over
collateralization.

  -- EUREUR60M Class A-2 Senior Secured Floating Rate Notes due
     2027 Notes, Downgraded to Aa3; previously on Mar 4, 2009 Aaa
     Placed Under Review for Possible Downgrade

  -- EUREUR51M Class B Senior Secured Floating Rate Notes due 2027
     Notes, Downgraded to Baa1; previously on Mar 4, 2009 Aa2
     Placed Under Review for Possible Downgrade

  -- EUREUR34M Class C Senior Secured Deferrable Floating Rate
     Notes due 2027 Notes, Downgraded to Ba2; previously on
     Mar 19, 2009 Downgraded to Ba1 and Remained On Review for
     Possible Downgrade

  -- EUREUR31M Class D Senior Secured Deferrable Floating Rate
     Notes due 2027 Notes, Downgraded to B2; previously on Mar 19,
     2009 Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- EUREUR33M Class E Senior Secured Deferrable Floating Rate
     Notes due 2027 Notes, Downgraded to Caa3; previously on
     Mar 19, 2009 Downgraded to Caa2 and Remained On Review for
     Possible Downgrade

  -- EUREUR12M Class F Senior Secured Deferrable Floating Rate
     Notes due 2027 Notes, Downgraded to Ca; previously on Mar 19,
     2009 Downgraded to Caa3 and Remained On 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 2850), an increase in the amount of defaulted
securities (currently 3.9% of the portfolio), an increase in the
proportion of securities from issuers rated Caa1 and below
(currently 17.42% of the portfolio), and a failure of Class D,
Class E and Class F par value tests.  These measures were taken
from the recent trustee report dated November 30, 2009 for the
period October 15 to November 13.  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
aforementioned stresses, key model inputs used by Moody's in its
analysis, such as par, weighted average rating factor, diversity
score, and weighted average recovery rate, may be different from
the 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.


HIGHLANDER EURO: Moody's Junks Ratings on Two Classes of Notes
--------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Highlander Euro CDO II:

Issuer: Highlander Euro CDO II B.V.

  -- EUR479.5M Class A Primary Senior Secured Floating Rate Notes
     due 2022, Downgraded to Aa1; previously on December 14, 2006
     Definitive Rating Assigned Aaa;

  -- EUR56M Class B Primary Senior Secured Floating Rate Notes due
     2022, Downgraded to Baa2; previously on March 4, 2009 Aa2
     Placed Under Review for Possible Downgrade;

  -- EUR42M Class C Primary Senior Secured Deferrable Floating
     Rate Notes due 2022, Downgraded to Ba3; previously on
     March 19, 2009 Downgraded to Ba2 and Placed Under Review for
     Possible Downgrade;

  -- EUR28M Class D Primary Senior Secured Deferrable Floating
     Rate Notes due 2022, Downgraded to Caa1; previously on
     March 19, 2009 Downgraded to B2 and Placed Under Review for
     Possible Downgrade.

Issuer: Highlander EURo CDO II (Cayman) Ltd.

  -- EUR3M Class C Secondary Senior Secured Deferrable Floating
     Rate Notes due 2022, Downgraded to Ba3; previously on
     March 19, 2009 Downgraded to Ba2 and Placed Under Review for
     Possible Downgrade;

  -- EUR2.5M Class D Secondary Senior Secured Deferrable Floating
     Rate Notes due 2022, Downgraded to Caa1; previously on
     March 19, 2009 Downgraded to B2 and Placed Under Review for
     Possible Downgrade;

  -- EUR24.5M Class E Secondary Senior Secured Deferrable Floating
     Rate Notes due 2022, Confirmed at Caa3; previously on
     March 19, 2009 Downgraded to Caa3 and Placed Under Review for
     Possible Downgrade;

  -- EUR7M Class X Secondary Combination Securities due 2022,
     Downgraded to B1; previously on March 4, 2009 Baa1 Placed
     Under Review for Possible Downgrade.

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', an increase in the amount of defaulted securities and the
proportion of securities from issuers rated CCC and below .
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.


ORYX EUROPEAN: Moody's Confirms Rating on Class D Notes at 'B1'
---------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Oryx European CLO B.V.

  -- EUR267,000,000 Class A Senior Floating Rate Notes due 2020,
     Downgraded to Aa1; previously on Oct. 12, 2005 Definitive
     Rating Assigned Aaa

  -- EUR34,250,000 Class B Senior Floating Rate Notes due 2020,
     Downgraded to A3; previously on March 4, 2009 Aa2 Placed
     Under Review for Possible Downgrade

  -- EUR18,000,000 Class C Senior Subordinated Deferrable Floating
     Rate Notes due 2020, Confirmed at Ba1; previously on
     March 19, 2009 Downgraded to Ba1 and Remained On Review for
     Possible Downgrade

  -- EUR30,750,000 Class D Senior Subordinated Deferrable Floating
     Rate Notes due 2020, Confirmed at B1; previously on March 19,
     2009 Downgraded to B1 and Remained On 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 which
represent 1.8% of the portfolio.

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 2491), the amount of
defaulted securities (currently 3.0% of the portfolio), the
proportion of securities from issuers rated Caa1 and below
(currently 7.2% of the portfolio), and a failure of the Class D
par value test and the reinvestment test.  These measures were
taken from the recent trustee report dated December 7, 2009.
Moody's also performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality
combined with a decrease in the expected recovery rates.

In addition 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.


PROSPERO CLO: Moody's Junks Rating on US$7.7 Mln Class D Notes
--------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Prospero CLO I B.V.  Given that this is a relatively
well-performing CLO, the Class A-1-A, A-1-B, and A-1-C notes
remain Aaa.

  -- US$15,300,000 Class A-2 Senior Secured Floating Rate Notes
     Due 2017, Downgraded to A1; previously on Mar 4, 2009 Aa2
     Placed Under Review for Possible Downgrade

  -- US$15,300,000 Class B Senior Secured Deferrable Interest
     Floating Rate Notes Due 2017, Downgraded to Baa3; previously
     on Mar 4, 2009 A3 Placed Under Review for Possible Downgrade

  -- US$15,300,000 Class C Senior Secured Deferrable Interest
     Floating Rate Notes Due 2017, Downgraded to Ba3; previously
     on Mar 4, 2009 Baa2 Placed Under Review for Possible
     Downgrade

  -- US$7,700,000 Class D Senior Secured Deferrable Interest
     Floating Rate Notes Due 2017, Downgraded to Caa1; previously
     on Mar 4, 2009 Ba2 Placed Under Review for Possible Downgrade

This transaction is a managed cash collateralized loan obligation
with exposure to European and US senior secured loans, as well as
5% 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 moderate 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 2749), and an increase in the
amount of defaulted securities (currently 3% of the portfolio).
These measures were taken from the recent trustee report dated
November 5, 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 aforementioned
stresses, key model inputs used by Moody's in its analysis, such
as par, weighted average rating factor, diversity score, and
weighted average recovery rate, may be different from the
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.


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


YUKOS OIL: High Court Finds Shareholder's Arrest Illegal
--------------------------------------------------------
The Wall Street Journal's Gregory L. White reports that Russia's
highest court last week struck down the 2003 arrest of Platon
Lebedev, the business partner of former OAO Yukos head Mikhail
Khodorkovsky.  Lawyers, however, said the ruling is a largely
symbolic victory that isn't likely to lead to Mr. Lebedev's
release.

The Journal notes Messrs. Khodorkovsky and Lebedev were convicted
of fraud and tax evasion in 2005 and sentenced to eight years in
prison.  They are now on trial in Moscow for new Yukos-related
charges that could lead to sentences of 15 years or more apiece if
they're convicted.  The case is being watched as a test of
President Dmitry Medvedev's pledges to strengthen the rule of law
and judicial independence.

According to the Journal, the Presidium of Russia's Supreme Court
last week said the initial decision to keep Mr. Lebedev, one of
Yukos's main shareholders, in jail before his trial was illegal.
Lawyers said the top court's decision was essentially dictated by
a 2007 ruling of the European Court of Human Rights in Strasbourg,
which said Russia violated Mr. Lebedev's rights in its handling of
his pre-trial detention.  The Journal notes Russia is bound by
treaty to honor the Strasbourg court's rulings, which in recent
years have frequently come against Russia's government.

The Journal says the ruling was a rare win in Russian court for
former Yukos shareholders.  Yukos was driven into bankruptcy by
back-tax claims and sold off earlier this decade in what was
widely viewed as a politically motivated attack by the Kremlin on
a politically ambitious oligarch, the Journal says.

According to the Journal, the prosecutor at Wednesday's hearing
had asked the top Russian court not to strike down lower Russian
court rulings that upheld the arrest, requesting instead a
nonbinding finding against the officials who had been involved in
the cases.  The Journal relates prosecutors declined to comment on
the ruling, beyond saying that it won't lead to Mr. Lebedev's
release.

The Journal says Mr. Lebedev's defense lawyers said they will
consider using the ruling to challenge other elements of the case.
They said they don't see signs of a major shift in the way Russian
courts approach the Yukos case.

According to the Journal, several other Yukos-related cases are
still pending there, including a parallel complaint against the
October 2003 jailing of Mr. Khodorkovsky, as well as challenges of
the 2005 convictions.  Rulings in some are expected in the next
few months.

                         About Yukos Oil

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- was an
open joint stock company existing under the laws of the Russian
Federation.  Yukos was involved in energy industry substantially
through its ownership of its various subsidiaries, which owned or
were otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company sought U.S. Chapter 11 bankruptcy protection Dec. 14,
2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was
dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few
days later, the Russian Government sold its main production unit
Yugansk to a little-known firm Baikalfinansgroup for $9.35
billion, as payment for US$27.5 billion in tax arrears for 2000-
2003.  Yugansk eventually was bought by state-owned Rosneft, which
has claimed more than US$12 billion from Yukos.

On March 10, 2006, a 14-bank consortium led by Societe Generale
filed a bankruptcy suit in the Moscow Arbitration Court in an
attempt to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
owned oil company as plaintiff.

On April 13, 2006, court-appointed external manager Eduard Rebgun
filed a U.S. Chapter 15 bankruptcy petition (Bankr. S.D.N.Y. Case
No. 06-0775), in an attempt to halt the sale of Yukos' 53.7%
ownership interest in Lithuanian AB Mazeikiu Nafta.

On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration
Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and
declared what was once Russia's biggest oil firm bankrupt.

On Nov. 23, 2007, the Russian Trading System and Moscow Interbank
Currency Exchange stopped trading Yukos shares after the company
formally ceased to exist.  Mr. Rebgun completed the company's
liquidation process after Russia's Federal Tax Service has entered
Yukos' liquidation on the Uniform State Register of Legal
Entities.

As reported in the TCR-Europe on Nov. 14, 2007, the Moscow
Arbitration Court entered an order closing the liquidation
proceedings of OAO Yukos Oil Co., 15 months after it was declared
bankrupt on Aug. 1, 2006.


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


AYT CAIXA: Fitch Junks Rating on EUR24.5 Mln Class D Notes
----------------------------------------------------------
Fitch Ratings has downgraded four classes of AYT Caixa Galicia
Empresas I, FTA and affirmed the remaining two classes.  The
Rating Watch Negative on the senior and mezzanine notes has been
removed.  The RWN was assigned in August 2009 pending full
analysis after the release of Fitch's revised criteria for rating
CLOs of granular pools of small corporate loans.  The rating
actions taken are:

  -- EUR423,592,912 Class A (ISIN ES0384955003) downgraded to
     'AA+' from 'AAA'; off RWN; assigned Stable Outlook and Loss
     Severity Rating of 'LS-1'

  -- EUR41,600,000 Class B (ISIN ES0384955011) downgraded to
     'BBB+' from 'AA-'; off RWN; assigned Stable Outlook and Loss
     Severity Rating of 'LS-3'

  -- EUR27,100,000 Class C (ISIN ES0384955029) downgraded to 'BB+'
     from 'BBB'; off RWN; assigned Negative Outlook and Loss
     Severity Rating of 'LS-4'

  -- EUR24,500,000 Class D (ISIN ES0384955037) downgraded to 'CCC'
     from 'BB-', off RWN

  -- EUR5,000,000 Class E1 (ISIN ES0384955045) affirmed at 'C'

  -- EUR24,300,000 Class E2 (ISIN ES0384955052) affirmed at 'C'

The one-notch downgrade of Class A is driven by the implementation
of Fitch's revised SME CDO rating criteria and the updated credit
view of the SME assets.  For the Classes B, C and D notes the
increased level of loans in arrears or in default as well as the
shortfall of the reserve fund below its required minimum have
further contributed to the downgrade.  While Classes A, B, C and D
can still withstand a number of obligors defaulting before
realizing a loss, in particular for Class D there is a material
probability that eventual losses on the pool may prevent full
repayment by legal maturity.

As of the October 2009 investor report, the portfolio had
amortized to EUR521 million, representing 60% of the initial
portfolio balance.  Obligor concentration has increased to
moderate levels owing to a reduction in the number of obligors in
the pool following loan redemptions.  The top obligor and the top
10 obligors make up 1.3% and 8.2% respectively of the outstanding
portfolio balance.

The amount of defaults, defined as arrears of more than 12 months,
increased to 0.8% of the outstanding balance in October 2009, from
0.05% in October 2008.  Over the same period, the three-month
delinquency rate more than doubled to 2.3%.  Consequently, part of
the reserve fund has been utilized to provision for defaults, and
currently stands at EUR2.3 million short of its target level of
EUR29.3 million.

Using its Rating Criteria for European SME CLOs, Fitch has
determined the benchmark probability of default of the unrated SME
loans.  Based on observed delinquencies and the origination
process of the respective banks in Spain, the benchmark
probability of default is adjusted upward or downward.  Delinquent
loans are notched down depending on the time the loans have been
in arrears.  Recoveries for loans secured by first lien real
estate are adjusted for property indexation and market value
stress based on the criteria but second lien mortgages are treated
as senior unsecured loans.


AYT FTPYME: Fitch Downgrades Rating on Class F3 Notes to 'BB'
-------------------------------------------------------------
Fitch Ratings has downgraded one class of AYT FTPYME II F.T.A.
(AYT FTPYME II) and affirmed the remaining three classes.  The
Rating Watch Negative (RWN) on the most junior class has been
removed.  The RWN was assigned in August 2009 pending full
analysis following the release of Fitch's revised criteria for
rating CLOs of granular pools of small corporate loans on 23 July
2009.  The rating actions taken are:

AYT FTPYME II:

  -- EUR954,723 Class F1 (ISIN ES0312363007) affirmed at 'AAA';
     assigned Stable Outlook and Loss Severity Rating of 'LS-5'

  -- EUR22.6 million Class F2 (ISIN ES0312363015) affirmed at
     'AAA'; assigned Stable Outlook and Loss Severity Rating of
     'LS-3'

  -- EUR90.1 million Class T2 (ISIN ES0312363023) affirmed at
     'AAA'; assigned Stable Outlook

  -- EUR34 million Class F3 (ISIN ES031263031) downgraded to 'BB'
     from 'BBB', removed from RWN; assigned Stable Outlook and
     Loss Severity Rating of 'LS-3'

The downgrade of the Class F3 is the result of the implementation
of Fitch's revised SME CDO rating criteria and the update of the
credit view of SME assets.

The affirmation of the Class F1, F2 and T2 notes reflects the high
degree of de-leveraging of the transaction; meanwhile the
historical performance of the collateral portfolio is considered
to be above average.  The 'AAA' rating of the Class T2 notes is
warranted even without considering the benefit of the guarantee of
ultimate payment of interest and principal provided by The Kingdom
of Spain (rated 'AAA/Stable/F1+').

All classes' credit enhancements can withstand a sufficient number
of obligor defaults at their respective rating stresses under the
revised assumptions in the SME CDO rating criteria.

As of the October 2009 investor report, the portfolio had
amortized to EUR149 million, representing 30% of the initial
portfolio balance.  Obligor concentration has increased to
moderate levels owing to a reduction in the number of obligors in
the pool following loan redemptions.  The top obligor and the top
10 obligors make up 1.5% and 7.7% respectively of the outstanding
portfolio balance.  The portfolio is well diversified from a
sector and geographic point of view.

Collateral performance is stable and delinquencies of more than 90
days up to default represent only 0.83% of the outstanding
collateral.  Cumulative defaults, defined as arrears of more than
12 months, represent 0.27% of the initial collateral balance.

The reserve fund currently stands at EUR12.3 million (8.4% of the
outstanding portfolio balance) compared to an initial balance of
EUR 17.5 million.  Further amortizations of the reserve fund are
currently not permitted as the default trigger (percentage of
loans in arrears for more than 90 days including defaulted loans)
of 1% has been breached.

Using its Rating Criteria for European SME CLOs, Fitch has
determined the probability of default of the unrated SME loans.
Based on observed delinquencies and the origination process of the
respective banks in Spain, the benchmark probability of default is
adjusted upward or downward.  Delinquent loans are notched down
depending on the time the loans have been in arrears.  Recoveries
for loans secured by first lien real estate are adjusted for
property indexation and market value stress based on the criteria
but second lien mortgages are treated as senior unsecured loans.


BANESTO: Santander CEO Sanz Found Guilty of False Accusation
------------------------------------------------------------
Mark Mulligan at The Financial Times reports that a Spanish court
has found that Alfredo Sanz, chief executive of Santander, and two
former colleagues guilty of charges stemming from the collapse of
Banesto.

The FT recalls Banesto was rescued by the Bank of Spain in late
1993 and taken over a year later by Santander.

Citing Efe, the Spanish state news agency, the FT says Mr. Saenz
was sentenced to six months in jail -- which under Spanish law he
is unlikely to serve -- and fined EUR9,000.  He and his co-accused
were also ordered to pay one of the plaintiffs EUR100,000 in
damages, and the other three a symbolic EUR1 apiece, the FT
discloses.

According to the FT, Banesto said it would appeal against the
decision.

"The only procedure that was still alive is that for which the
provincial court of Barcelona has just handed down this sentence,"
the FT quoted Banesto as saying on Monday in a prepared release.
However, it claimed that "the same court had issued a stay of
proceedings on the lawsuit for false accusation on October 28
2004".

The ruling stems from a series of lawsuits filed against the
bank's debtors as part of efforts to recover bad loans as it sank
into insolvency in 1993, the FT discloses citing Banesto.  As the
result of one such action, a group of businessmen were held
provisionally in jail for allegedly concealing assets, the FT
states.

The businessmen and a Banesto board member sued Mr. Saenz as head
of Banesto, along with another executive and the bank's lawyer at
the time, for false accusation, giving false evidence and bribery,
the FT recounts.


CAJA CIRCULO: Fitch Affirms Ratings on Class D Notes at 'B'
-----------------------------------------------------------
Fitch Ratings has affirmed four classes of AyT Colaterales Global
Empresas Caja Circulo I, FTA.  The Rating Watch Negative on the
most junior class has been removed.  The RWN was assigned in
August 2009 pending full analysis following the release of Fitch's
revised criteria for rating CLOs of granular pools of small
corporate loans (SME CLOs) on July 23, 2009.  The rating actions
taken are:

  -- EUR63.7 million Class A (ISIN ES0312214085) affirmed at
     'AAA'; assigned Stable Outlook and Loss Severity Rating of
     'LS-2'

  -- EUR13 million Class B (ISIN ES0312214093) affirmed at 'A';
     assigned Stable Outlook and Loss Severity Rating of 'LS-3'

  -- EUR10.4 million Class C (ISIN ES0312214101) affirmed at
     'BBB-'; assigned Stable Outlook and Loss Severity Rating of
     'LS-3'

  -- EUR10.4 million Class D (ISIN ES0312214119) affirmed at 'B',
     off RWN; assigned Negative Outlook and Loss Severity Rating
     of 'LS-3'

The affirmation of all Classes reflects the degree of de-
leveraging of the transaction, meanwhile the historical
performance of the collateral portfolio shows average performance.
All classes' credit enhancements can withstand a sufficient number
of obligor defaults at their respective rating stresses under the
revised assumptions in the SME CDO rating criteria.  However the
most junior note was placed on Negative Outlook owing to Fitch's
concern over the rising level of obligor concentration.

As of the November 2009 investor report, the portfolio had
amortized to EUR102 million, representing 78% of the initial
portfolio balance.  The portfolio has relatively high obligor
concentration.  The top obligor and the top 10 obligors make up
3.94% and 24.6% respectively of the outstanding portfolio balance.
The portfolio is well diversified by industry; however, it is
concentrated in the Aragon region, and some 62% of the pool is
concentrated in the province of Burgos.

Collateral performance has been volatile; delinquencies of more
than 90 days up to default represented 1.84% of the outstanding
collateral in November 2009 and 4.46% back in May.  Cumulative
defaults, defined as arrears of more than 12 months, currently
represent 0.82% of the initial collateral balance.

The reserve fund currently stands at EUR8.6 million (8.8% of the
outstanding portfolio balance) compared to an initial balance of
EUR12.5 million.  The reduction reflects its utilization to
provision for defaults, causing a slight acceleration of principal
payment under the Class A notes.  Amortization of the reserve fund
is currently not permitted now that it is below its required
level.

Using its Rating Criteria for European SME CLOs (for further
information, please refer to "Rating Criteria for European
Granular Corporate Balance-Sheet Securitizations (SME CLO)" dated
July 23, 2009), Fitch has determined the above benchmark
probability of default of the unrated SME loans.  Based on
observed delinquencies and the origination process of the
respective banks in Spain, the benchmark probability of default is
adjusted upward or downward.  Delinquent loans are notched down
depending on the time the loans have been in arrears.  Recoveries
for loans secured by first lien real estate are adjusted for
property indexation and market value stress based on the criteria
but second lien mortgages are treated as senior unsecured loans.


CAJA MURCIA: Fitch Downgrades Ratings on Class D Notes to 'B'
-------------------------------------------------------------
Fitch Ratings has downgraded one class of AYT Colaterales Empresas
Caja Murcia, F.T.A. and affirmed the remaining three classes.  The
Rating Watch Negative on all classes has been removed.  The RWN
was assigned in August 2009 pending full analysis following the
release of Fitch's revised criteria for rating CLOs of granular
pools of small corporate loans.  The rating actions taken are:

  -- EUR216,144,261 Class A (ISIN ES0312214002) affirmed at 'AAA';
     off RWN; assigned Stable Outlook and Loss Severity Rating of
     'LS-1'

  -- EUR19.2 million Class B (ISIN ES0312214010) affirmed at 'A';
     off RWN; assigned Stable Outlook and Loss Severity Rating of
     'LS-3'

  -- EUR8.1 million Class C (ISIN ES0312214028) affirmed at
     'BBB-'; off RWN; assigned Negative Outlook and Loss Severity
     Rating of 'LS-4'

  -- EUR6.1 million Class D (ISIN ES0312214036) downgraded to 'B'
     from 'BB-', off RWN; assigned Negative Outlook and Loss
     Severity Rating of 'LS-4'

The downgrade of the Class D reflects the implementation of
Fitch's revised SME CDO rating criteria, the agency's updated
credit view of the underlying SME assets, and the vulnerability of
Class D to the increasing obligor concentration risk in the
portfolio.

The affirmations of the Class A, B and C notes reflect the high
degree of de-leveraging of the transaction.  Further, these
classes can withstand a number of obligor defaults at their
respective rating stresses under the revised assumptions in the
SME CDO rating criteria.

As of the October 2009 investor report, the portfolio had
amortized to EUR250 million, representing 62% of the initial
portfolio balance.  As a result of loan redemptions, obligor
concentration is increasing.  Currently, the top obligor and the
top 10 obligors make up 2.7% and 12.4% respectively of the
outstanding portfolio balance, up from 2% and 11.2% a year
earlier.  Additionally, the portfolio exhibits high geographical
concentration in the region of Murcia (72.6% of outstanding
principal balance).

Portfolio performance has been stable.  Arrears of more than 90
days amount to only 0.9% of the total outstanding balance.  There
are no defaulted loans (defined as 12 months in arrears) to date.

The reserve fund is fully funded at EUR14.58 million (3.6% of the
outstanding portfolio balance) and is not permitted to step down
until Dec 2010 at the earliest.

Using its Rating Criteria for European SME CLOs, Fitch has
determined the probability of default of the unrated SME loans.
Based on observed delinquencies and the origination process of the
respective banks in Spain, the benchmark probability of default is
adjusted upward or downward.  Delinquent loans are notched down
depending on the time the loans have been in arrears.  Recoveries
for loans secured by first lien real estate are adjusted for
property indexation and market value stress based on the criteria
but second lien mortgages are treated as senior unsecured loans.


IM PASTOR: S&P Downgrades Ratings on Class B Notes to 'BB'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered and placed on
CreditWatch negative its credit ratings on IM PASTOR 3, Fondo de
Titulizacion Hipotecaria's class C and D notes and IM PASTOR 4,
Fondo de Titulizacion de Activos's class B and C notes.  At the
same time, S&P placed all other ratings in these transactions on
CreditWatch negative.

S&P's credit analysis of the most recent transaction information
for both transactions showed that the current and potential
performance of the underlying collateral pool might not be
sufficient to maintain the current ratings, in S&P's opinion.  S&P
has thus placed its ratings on CreditWatch negative.

These transactions feature a structural mechanism that traps
excess spread to provide for defaults.  As a significant portion
of loans are classified as defaulted, both transactions have fully
depleted their cash reserves.  This reduces the likelihood of the
reserves being available to supplement any future interest
shortfalls in the transactions.

The mortgage portfolios underlying these transactions are also
experiencing high delinquency levels.  As of the end of November,
S&P calculate severe delinquencies--defined as arrears greater
than 90 days (including outstanding defaulted loans)--at around
7.61% and 6.31% of the current collateral balance in IM PASTOR 3
and 4, respectively.

IM PASTOR 3 and 4 issued their notes in June 2005 and June 2006,
respectively.  A portfolio of first-ranking residential mortgage
loans secured over properties in Spain backs the notes.  Banco
Pastor S.A. originated and services the loans.

                           Ratings List

          IM PASTOR 3, Fondo de Titulizacion Hipotecaria
         EUR1 Billion Mortgage-Backed Floating-Rate Notes

        Ratings Lowered and Placed On CreditWatch Negative

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

              Ratings Placed On CreditWatch Negative

                                  Rating
                                  ------
               Class      To                   From
               -----      --                   ----
               A          AAA/Watch Neg        AAA
               B          A+/Watch Neg         A+

          IM PASTOR 4, Fondo de Titulizacion de Activos
        EUR920 Million Mortgage-Backed Floating-Rate Notes

       Ratings Lowered and Placed On CreditWatch Negative

                                  Rating
                                  ------
               Class      To                   From
               -----      --                   ----
               B          A/Watch Neg          AA-
               C          BBB-/Watch Neg       BBB+

              Ratings Placed On CreditWatch Negative

                                  Rating
                                  ------
               Class      To                   From
               -----      --                   ----
               A          AAA/Watch Neg        AAA
               D          BB/Watch Neg         BB


LTR FINANCE: Moody's Downgrades Ratings on Class D Notes to 'B3'
----------------------------------------------------------------
Moody's Investors Services has downgraded the ratings of the notes
issued by LTR Finance No 6 plc and LTR Warehouse Limited.  In
addition, Moody's has placed some of the notes in these two
transactions on review for further possible downgrade.  At the
same time, it has also placed on review for possible downgrade the
ratings of the notes issued by LTR Finance No 5 plc

The downgrades were prompted by the weaker-than-expected pool
performance of the transactions, the ratings of which Moody's
originally placed on review on July 22, 2009.  Moody's rating
review of the three LTR transactions relates to operational risks.

All three transactions represent the securitization of portfolios
of Portuguese and Spanish auto-loans and lease contracts
originated by Sofinloc Instituicao Financeira de Creditos, S.A.
(not rated) in Portugal and Sofinloc Instituicao Financeira de
Creditos, S.A. Spanish Branch (not rated) in Spain, which have
retained the roles of Portuguese and Spanish servicers in these
transactions (in addition to other operational roles).  Sofinloc
is a subsidiary of Banco Finantia S.A. (unrated).  LTR 5, LTR 6
and LTR Warehouse closed in July 2004, September 2006 and April
2007, respectively and their revolving periods terminated in
October 2007, November 2009 and March 2009.

                         Weak Performance

The rating downgrades for LTR 6 and LTR Warehouse resulted from an
increase in the rating agency's default assumptions, and a
decrease in its recovery expectation, in light of the
deterioration in the performance of the two affected transactions.

Since July 2009, cumulative write-offs have increased to
EUR42.7 million from EUR36.7 million in LTR 6 and to
EUR17.6 million from EUR12.3 million in LTR Warehouse.  In
terms of total assets securitized, the cumulative write-off ratio
in LTR 6 has increased to 4.5%, compared to 4.0% and in LTR
Warehouse to 2.8%, compared to 2.0% in July 2009.  As of the last
reporting date in both transactions, the reserve fund was fully
funded at its target levels.

For LTR 6, Moody's has adjusted its cumulative mean default rate
assumption to 9.9% from its previously revised assumption of 7.3%.
For LTR Warehouse, Moody's has adjusted its cumulative mean
default rate to 10.4% from 6% of the original balance of the pool
plus replenishments.  For both transactions, Moody's has reduced
its initial coefficient of variation assumption to 35% from 42%.
Moody's uses the coefficient of variation as a measure of the
volatility of its expected default distribution and defines it as
the ratio between the standard deviation and the mean.  During its
analysis Moody's considered various types of information such as
macro-economic indicators, portfolio characteristics and
performance data made available by the originator Sofinloc.  The
rating agency also took into account cumulative write-offs and a
roll rate analysis was conducted for the non-delinquent pool
portion.

Moody's increased cumulative default rates are mostly driven by:
i) the worse-than expected performance of the receivables
originated in Spain; and ii) the potential for further
deterioration within the pool of receivables originated in
Portugal.  Since LTR 6 and LTR Warehouse are backed by pools of
similar asset types, the main difference in performance is
expected to stem from seasoning effects and the different
origination vintage distributions in the portfolios.

Moody's has also reduced its base case recovery rate assumption to
20% from 35% initially, for both LTR 6 and LTR Warehouse.  Moody's
believes that the reduced recovery rate is more in line with
actual observed recovery levels.

                        Operational Risks

Moody's has also placed all notes in the three outstanding LTR
transactions that were rated at or above the Ba1 level on review
for possible downgrade, as it assesses the impact of operational
risks.  The three transactions are exposed to the ability of
Sofinloc and Sofinloc Spanish Branch to perform their various
obligations related to servicing and cash management (a role
associated with payment calculation and instructions) in a timely
fashion.  Moody's notes that there are no appointed back-up
servicers, or back-up arrangements for the cash management
responsibilities of Sofinloc or Sofinloc Spanish Branch.
Transaction documents include replacement events that are
triggered when the capital adequacy ratio of Banco Finantia ceases
to be above 8% (according to Banco Finantia, as of September 2009
this ratio was 13%).  However, Moody's believes these triggers
imperfectly protect the transactions from possible disruptions if
Banco Finantia, Sofinloc or Sofinloc Spanish Branch become
insolvent.  Moody's has also considered the impact of a weakening
outlook for the Spanish and Portuguese economies and banking
sectors.  Moody's sector outlook for Spanish consumer ABS and the
Portuguese banking system is negative.

Moody's most recently discussed its rating considerations related
to operational risks in a Special Comment called "Operational
Risks in Securitizations to be Revisited", published in November
2009.

Moody's review for possible downgrade in relations with
operational risks will focus on: i) the losses that could arise
from a disruption of due to the failure of the servicers or cash
managers to perform their obligations in a timely manner; and ii)
the obligations and ability of various parties in the transaction
to minimize such payment disruptions in a distressed scenario.
For instance, noteholders may be exposed to the potential losses
that could result, among other, from swap termination costs, or
from the trapping of collateral collections in the bankruptcy
estate of an insolvent entity.  At the same time, some parties in
the transactions, which include the Fund and transaction managers,
have obligations towards noteholders and may act as facilitators
in a distressed scenario, but Moody's will seek to clarify their
ability to obtain the required information to do so under such a
scenario.

Moody's ratings address the expected loss posed to investors by
the legal final maturity date (July 2015 for LTR 5, November 2018
for LTR 6 and March 2018 for LTR Warehouse).

List of detailed rating actions

LTR Finance No. 5 plc:

  -- Class A Notes EUR27.5 million outstanding, Placed on review
     for possible downgrade; previously on 1 July 2004 rated Aaa.

  -- Class B Notes EUR15.6 million outstanding, Placed on review
     for possible downgrade; previously on 1 July 2004 rated Aa1.

  -- Class C Notes EUR16.6 million outstanding, Placed on review
     for possible downgrade; previously on 1 July 2004 rated A2.

  -- Class D Notes EUR7.5 million outstanding, Placed on review
     for possible downgrade; previously on 1 July 2004 rated Baa3.

LTR Finance No. 6 plc:

  -- Class A Notes EUR343.2 million outstanding, Downgraded to Aa2
     from Aaa and placed on review for further possible downgrade;
     previously on 22 July 2009 placed under review for possible
     downgrade

  -- Class B Notes EUR35.0 million outstanding, Downgraded to Baa2
     from Aa1 and placed on review for further possible downgrade;
     previously on 22 July 2009 placed on review for possible
     downgrade

  -- Class C Notes EUR30.6 million outstanding, Downgraded to Ba3
     from A2; previously on July 22 2009 A2 placed on review for
     possible downgrade

  -- Class D Notes EUR13.2 million outstanding, Downgraded to B3
     from Baa2; previously on 22 July 2009, placed on review for
     possible downgrade

LTR Warehouse Limited:

  -- Senior Facility EUR295.6 million outstanding, Downgraded to
     Aa1 from Aaa and placed on review for further possible
     downgrade; previously on July 22 2009 placed on review for
     possible downgrade

  -- Mezzanine Facility EUR10.4 million outstanding, Downgraded to
     A1 from Aa2 and placed on review for further possible
     downgrade; previously on July 22 2009 placed on review for
     possible downgrade

  -- Class B Notes EUR54.4 million outstanding, Downgraded to Ba1
     from Baa3 and placed on review for further possible
     downgrade; previously on July 22 2009 placed on review for
     possible downgrade


LTR WAREHOUSE: Moody's Lowers Rating on Class B Notes to 'Ba1'
--------------------------------------------------------------
Moody's Investors Services has downgraded the ratings of the notes
issued by LTR Finance No 6 plc and LTR Warehouse Limited.  In
addition, Moody's has placed some of the notes in these two
transactions on review for further possible downgrade.  At the
same time, it has also placed on review for possible downgrade the
ratings of the notes issued by LTR Finance No 5 plc

The downgrades were prompted by the weaker-than-expected pool
performance of the transactions, the ratings of which Moody's
originally placed on review on 22 July 2009.  Moody's rating
review of the three LTR transactions relates to operational risks.

All three transactions represent the securitization of portfolios
of Portuguese and Spanish auto-loans and lease contracts
originated by Sofinloc Institui‡ao Financeira de Creditos, S.A.
(not rated) in Portugal and Sofinloc Institui‡ao Financeira de
Creditos, S.A. Spanish Branch (not rated) in Spain, which have
retained the roles of Portuguese and Spanish servicers in these
transactions (in addition to other operational roles).  Sofinloc
is a subsidiary of Banco Finantia S.A. (unrated).  LTR 5, LTR 6
and LTR Warehouse closed in July 2004, September 2006 and April
2007, respectively and their revolving periods terminated in
October 2007, November 2009 and March 2009.

                         Weak Performance

The rating downgrades for LTR 6 and LTR Warehouse resulted from an
increase in the rating agency's default assumptions, and a
decrease in its recovery expectation, in light of the
deterioration in the performance of the two affected transactions.

Since July 2009, cumulative write-offs have increased to
EUR42.7 million from EUR36.7 million in LTR 6 and to
EUR17.6 million from EUR12.3 million in LTR Warehouse.  In
terms of total assets securitized, the cumulative write-off ratio
in LTR 6 has increased to 4.5%, compared to 4.0% and in LTR
Warehouse to 2.8%, compared to 2.0% in July 2009.  As of the last
reporting date in both transactions, the reserve fund was fully
funded at its target levels.

For LTR 6, Moody's has adjusted its cumulative mean default rate
assumption to 9.9% from its previously revised assumption of 7.3%.
For LTR Warehouse, Moody's has adjusted its cumulative mean
default rate to 10.4% from 6% of the original balance of the pool
plus replenishments.  For both transactions, Moody's has reduced
its initial coefficient of variation assumption to 35% from 42%.
Moody's uses the coefficient of variation as a measure of the
volatility of its expected default distribution and defines it as
the ratio between the standard deviation and the mean.  During its
analysis Moody's considered various types of information such as
macro-economic indicators, portfolio characteristics and
performance data made available by the originator Sofinloc.  The
rating agency also took into account cumulative write-offs and a
roll rate analysis was conducted for the non-delinquent pool
portion.

Moody's increased cumulative default rates are mostly driven by:
i) the worse-than expected performance of the receivables
originated in Spain; and ii) the potential for further
deterioration within the pool of receivables originated in
Portugal.  Since LTR 6 and LTR Warehouse are backed by pools of
similar asset types, the main difference in performance is
expected to stem from seasoning effects and the different
origination vintage distributions in the portfolios.

Moody's has also reduced its base case recovery rate assumption to
20% from 35% initially, for both LTR 6 and LTR Warehouse.  Moody's
believes that the reduced recovery rate is more in line with
actual observed recovery levels.

                        Operational Risks

Moody's has also placed all notes in the three outstanding LTR
transactions that were rated at or above the Ba1 level on review
for possible downgrade, as it assesses the impact of operational
risks.  The three transactions are exposed to the ability of
Sofinloc and Sofinloc Spanish Branch to perform their various
obligations related to servicing and cash management (a role
associated with payment calculation and instructions) in a timely
fashion.  Moody's notes that there are no appointed back-up
servicers, or back-up arrangements for the cash management
responsibilities of Sofinloc or Sofinloc Spanish Branch.
Transaction documents include replacement events that are
triggered when the capital adequacy ratio of Banco Finantia ceases
to be above 8% (according to Banco Finantia, as of September 2009
this ratio was 13%).  However, Moody's believes these triggers
imperfectly protect the transactions from possible disruptions if
Banco Finantia, Sofinloc or Sofinloc Spanish Branch become
insolvent.  Moody's has also considered the impact of a weakening
outlook for the Spanish and Portuguese economies and banking
sectors.  Moody's sector outlook for Spanish consumer ABS and the
Portuguese banking system is negative.

Moody's most recently discussed its rating considerations related
to operational risks in a Special Comment called "Operational
Risks in Securitizations to be Revisited", published in November
2009.

Moody's review for possible downgrade in relations with
operational risks will focus on: i) the losses that could arise
from a disruption of due to the failure of the servicers or cash
managers to perform their obligations in a timely manner; and ii)
the obligations and ability of various parties in the transaction
to minimize such payment disruptions in a distressed scenario.
For instance, noteholders may be exposed to the potential losses
that could result, among other, from swap termination costs, or
from the trapping of collateral collections in the bankruptcy
estate of an insolvent entity.  At the same time, some parties in
the transactions, which include the Fund and transaction managers,
have obligations towards noteholders and may act as facilitators
in a distressed scenario, but Moody's will seek to clarify their
ability to obtain the required information to do so under such a
scenario.

Moody's ratings address the expected loss posed to investors by
the legal final maturity date (July 2015 for LTR 5, November 2018
for LTR 6 and March 2018 for LTR Warehouse).

List of detailed rating actions

LTR Finance No. 5 plc:

  -- Class A Notes EUR27.5 million outstanding, Placed on review
     for possible downgrade; previously on 1 July 2004 rated Aaa.

  -- Class B Notes EUR15.6 million outstanding, Placed on review
     for possible downgrade; previously on 1 July 2004 rated Aa1.

  -- Class C Notes EUR16.6 million outstanding, Placed on review
     for possible downgrade; previously on 1 July 2004 rated A2.

  -- Class D Notes EUR7.5 million outstanding, Placed on review
     for possible downgrade; previously on 1 July 2004 rated Baa3.

LTR Finance No. 6 plc:

  -- Class A Notes EUR343.2 million outstanding, Downgraded to Aa2
     from Aaa and placed on review for further possible downgrade;
     previously on 22 July 2009 placed under review for possible
     downgrade

  -- Class B Notes EUR35.0 million outstanding, Downgraded to Baa2
     from Aa1 and placed on review for further possible downgrade;
     previously on 22 July 2009 placed on review for possible
     downgrade

  -- Class C Notes EUR30.6 million outstanding, Downgraded to Ba3
     from A2; previously on July 22 2009 A2 placed on review for
     possible downgrade

  -- Class D Notes EUR13.2 million outstanding, Downgraded to B3
     from Baa2; previously on 22 July 2009, placed on review for
     possible downgrade

LTR Warehouse Limited:

  -- Senior Facility EUR295.6 million outstanding, Downgraded to
     Aa1 from Aaa and placed on review for further possible
     downgrade; previously on July 22 2009 placed on review for
     possible downgrade

  -- Mezzanine Facility EUR10.4 million outstanding, Downgraded to
     A1 from Aa2 and placed on review for further possible
     downgrade; previously on July 22 2009 placed on review for
     possible downgrade

  -- Class B Notes EUR54.4 million outstanding, Downgraded to Ba1
     from Baa3 and placed on review for further possible
     downgrade; previously on July 22 2009 placed on review for
     possible downgrade


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


ALTERNATIFBANK A.S.: Fitch Affirms Individual Rating at 'D'
-----------------------------------------------------------
Fitch Ratings has corrected the version issued on
December 11, 2009.  The Support ratings of Garanti Finansal
Kiralama A.S., Garanti Faktoring Hizmetleri A.S. and Is Finansal
Kiralama A.S. are all upgraded to '2' from '3', and not affirmed
at '3' as previously stated.

Fitch Ratings has upgraded 19 Turkish banks' and financial
institutions' Long- and Short-term foreign and local currency
Issuer Default Ratings and Support Ratings and revised their
Support Rating Floors.  A full rating breakdown is provided below.

The rating actions reflect Fitch's upgrade of the Republic of
Turkey's Long-term foreign currency IDR to 'BB+' from 'BB-' and
the Long-term local currency IDR to 'BB+' from 'BB' on 3 December
2009.  The sovereign's Long-term IDRs were removed from Rating
Watch Positive and assigned a Stable Outlook.  Turkey's Short-term
IDR was affirmed at 'B' and its Country Ceiling was upgraded to
'BBB-' from 'BB'.  (For further information, please see the 3
December 2009 comment, entitled 'Fitch Upgrades Turkey's Sovereign
Rating Two Notches to 'BB+', which is available at
www.fitchratings.com.)

The IDRs of the Turkish banks referenced in the group below move
in tandem with the sovereign's IDRs.  These banks are state-owned
or state-controlled and their IDRs are thus equalized with those
of the Turkish sovereign.  The upgrade of the Support Ratings and
the revision of Support Rating Floors of these banks reflect the
improved capacity of the sovereign to provide such support.

T. C. ZIRAAT BANKASI A.S.:

  -- Long-term foreign currency (LTFC) IDR: upgraded to 'BB+' from
     'BB-'; removed from Rating Watch Positive (RWP); assigned
     Stable Outlook

  -- Long-term local currency (LTLC) IDR: upgraded to 'BB+' from
     'BB'; removed from RWP; assigned Stable Outlook

  -- Short-term foreign currency (STFC) IDR: affirmed at 'B'

  -- Short-term local currency (STLC) IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE HALK BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE VAKIFLAR BANKASI T.A.O.

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     RWP

The Long- and Short-term IDRs, National Long-term and Support
ratings of this group of banks are driven by potential support
from highly-rated foreign shareholders.  The banks' LTLC IDRs are
capped two notches above the sovereign's LTLC IDR.  The LTFC IDRs
of these banks are constrained by Turkey's Country Ceiling of
'BBB-'.  The upgrade of the banks' Support ratings, as referenced
in the group below, to '2' reflects the upgrade of their LTFC IDRs
to the Country Ceiling of 'BBB-'.

YAPI VE KREDI BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

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

  -- Support Rating: upgraded to '2' from '3'

DENIZBANK A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '2' from '3'

TURK EKONOMI BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

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

  -- Support Rating: upgraded to '2' from '3'

  -- Subordinated debt: upgraded to 'BBB-' from 'BB'; removed from
     RWP

The Long- and Short-term IDRs, National Long-term and Support
ratings of Finansbank A.S. are driven by potential support from
its foreign shareholder, National Bank of Greece (NBG, rated
'BBB+'/Stable).  While potential support from NBG is considered
strong, NBG's ability to provide such support, in case of need, is
considered by the agency to be not as strong as for the banks
referenced in the group above whose foreign shareholders are more
highly rated than NBG.  As such, Finansbank's LTLC IDR is rated
one notch above the sovereign's LTLC IDR.  The banks' LTFC IDR is
not constrained by Turkey's Country Ceiling.  The upgrade of the
bank's Support rating to '2' reflects the upgrade of the LTFC IDR
to the Country Ceiling of 'BBB-'.

FINANSBANK A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '2' from '3'

The Long- and Short-term IDRs, National Long-term and Support
ratings of this bank, Kuveyt Turk Katilim Bankasi A.S, reflects
Fitch's view of the probability of support from its 62.2% owner,
Kuwait Finance House (KFH, rated 'A+'/Stable/Individual Rating
'C/D'/Rating Watch Negative/'F1').  KFH's Long-term IDR is in turn
driven by support from the Kuwaiti sovereign (rated 'AA'/Stable),
and Fitch believes this support would, to an extent, also flow to
the strategically important Turkish subsidiary, if required.
Kuveyt Turk Katilim Bankasi A.S's LTLC IDR has been affirmed at
one notch above Turkey's sovereign LTLC IDR.  The bank's LTFC IDR
has been upgraded to the Country Ceiling level and is not
constrained.  The upgrade of the bank's Support rating reflects
the upgrade of its LTFC IDR to the Country Ceiling of 'BBB-'.

KUVEYT TURK KATILIM BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

The Long-term IDRs, Support rating and National Long-term rating
of this bank, Alternatifbank A.S., are driven by potential support
from ABank's majority shareholder, Anadolu Group, in case of need.
Fitch does not rate Anadolu Group.  However, the agency rates the
group's main operating subsidiary, Anadolu Efes Biracilik ve Malt
Sanayi A.S. (Anadolu Efes, rated 'BB+'/Negative) and bases its
opinion on potential support for ABank on this rating.  As Anadolu
Efes's LTFC IDR has been upgraded to 'BB+' following the sovereign
upgrade, ABank's LTFC IDR has been upgraded to 'BB'.  The Negative
Outlook for the LTFC IDR of ABank reflects a similar Outlook for
Anadolu Efes' LT IDRs.

ALTERNATIFBANK A.S.

  -- LTFC IDR: upgraded to 'BB' from 'BB-'; Outlook Negative

  -- LTLC IDR: affirmed at 'BB'; Outlook changed to Negative from
     Stable

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term rating: affirmed at 'AA(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

The Long-term IDRs of this bank, Bankpozitif Kredi Ve Kalkinma
Bankasi A.S., are driven by potential support from its highly-
rated foreign shareholder, Bank Hapoalim B.M. (rated 'A-'/Stable)
which controls 69.83% of the bank.  Bank Hapoalim's LTFC IDR is
driven by support from the Israeli sovereign (rated 'A'/Stable).
Bankpozitif's LTLC IDR has been affirmed one notch above the
Turkish sovereign's LTLC IDR.  Bankpozitif's LTFC IDR has been
upgraded to the Country Ceiling and is not constrained.  The
upgrade of the bank's Support rating reflects the upgrade of
bank's LTFC IDR to the Country Ceiling of 'BBB-'.

BANKPOZITIF KREDI VE KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

  -- Senior unsecured debt: upgraded to 'BBB-' from 'BB'; removed
     from RWP

  -- Subordinated debt: upgraded to 'BB+' from 'BB-'; removed from
     RWP

The LT IDRs of this bank, Turkland Bank A.S., are also driven by
potential support from its highly-rated foreign shareholder, Arab
Bank plc which is ultimately owned by Arab Bank group (rated 'A-
'/Stable) which controls 50% of the bank.  Lebanon-based Bank Med
Sal holds a 41% stake in Turkland.  While Arab Bank group and Bank
Med Sal are partners in several joint ventures, Bank Med Sal is
not rated by Fitch and thus the agency is not able to form a clear
opinion of its ability to support Turkland, alongside Arab Bank
group, in case of need.  Turkland's LTLC IDR has been affirmed one
notch above the sovereign's LTLC IDR.  The bank's LTFC IDR is not
constrained by Turkey's Country Ceiling.  The upgrade of the
Support rating reflects the upgrade of the bank's LTFC IDR to the
Country Ceiling of 'BBB-'.

TURKLAND BANK A.S.

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

The Long-term IDRs of these systemically important banks are
driven by their intrinsic financial strength which is reflected in
their Individual ratings of 'C'.  Their LTLC IDRs are rated one
notch above the sovereign's LTLC IDR, and the LTFC IDRs are rated
at the Country Ceiling level and are not constrained.  Fitch
considers that, in case of need, they would receive support from
the Turkish state and the Turkish sovereign's improving capacity
to provide such support has resulted in an upgrade of their
Support ratings and a revision of their Support Rating Floors.

TURKIYE IS BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

TURKIYE GARANTI BANKASI A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

AKBANK T.A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

The upgrade of this bank's LTFC IDR reflects the similar rating
action taken on its parent's (Turkiye Is Bankasi A.S.) rating.
The parent's improved ability to support its subsidiary has
resulted in the upgrade of the bank's LTFC IDR.

TURKIYE SINAI KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BB+'; removed from RWP; assigned Stable
     Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'; removed from RWP

  -- National Long-term rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

The IDRs of the entities below are equalized with those of their
parents, reflecting integration and committed support, and
therefore move in tandem with the rating action taken on their
parents' ratings.

GARANTI FINANSAL KIRALAMA A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating: upgraded to '2' from '3'

IS FINANSAL KIRALAMA A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating upgraded to '2' from '3'

GARANTI FAKTORING HIZMETLERI A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating: upgraded to '2' from '3'

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


BANKPOZITIF KREDI: Fitch Affirms Individual Rating at 'D'
---------------------------------------------------------
Fitch Ratings has corrected the version issued on
December 11, 2009.  The Support ratings of Garanti Finansal
Kiralama A.S., Garanti Faktoring Hizmetleri A.S. and Is Finansal
Kiralama A.S. are all upgraded to '2' from '3', and not affirmed
at '3' as previously stated.

Fitch Ratings has upgraded 19 Turkish banks' and financial
institutions' Long- and Short-term foreign and local currency
Issuer Default Ratings and Support Ratings and revised their
Support Rating Floors.  A full rating breakdown is provided below.

The rating actions reflect Fitch's upgrade of the Republic of
Turkey's Long-term foreign currency IDR to 'BB+' from 'BB-' and
the Long-term local currency IDR to 'BB+' from 'BB' on 3 December
2009.  The sovereign's Long-term IDRs were removed from Rating
Watch Positive and assigned a Stable Outlook.  Turkey's Short-term
IDR was affirmed at 'B' and its Country Ceiling was upgraded to
'BBB-' from 'BB'.  (For further information, please see the 3
December 2009 comment, entitled 'Fitch Upgrades Turkey's Sovereign
Rating Two Notches to 'BB+', which is available at
www.fitchratings.com.)

The IDRs of the Turkish banks referenced in the group below move
in tandem with the sovereign's IDRs.  These banks are state-owned
or state-controlled and their IDRs are thus equalized with those
of the Turkish sovereign.  The upgrade of the Support Ratings and
the revision of Support Rating Floors of these banks reflect the
improved capacity of the sovereign to provide such support.

T. C. ZIRAAT BANKASI A.S.:

  -- Long-term foreign currency (LTFC) IDR: upgraded to 'BB+' from
     'BB-'; removed from Rating Watch Positive (RWP); assigned
     Stable Outlook

  -- Long-term local currency (LTLC) IDR: upgraded to 'BB+' from
     'BB'; removed from RWP; assigned Stable Outlook

  -- Short-term foreign currency (STFC) IDR: affirmed at 'B'

  -- Short-term local currency (STLC) IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE HALK BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE VAKIFLAR BANKASI T.A.O.

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     RWP

The Long- and Short-term IDRs, National Long-term and Support
ratings of this group of banks are driven by potential support
from highly-rated foreign shareholders.  The banks' LTLC IDRs are
capped two notches above the sovereign's LTLC IDR.  The LTFC IDRs
of these banks are constrained by Turkey's Country Ceiling of
'BBB-'.  The upgrade of the banks' Support ratings, as referenced
in the group below, to '2' reflects the upgrade of their LTFC IDRs
to the Country Ceiling of 'BBB-'.

YAPI VE KREDI BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

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

  -- Support Rating: upgraded to '2' from '3'

DENIZBANK A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '2' from '3'

TURK EKONOMI BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

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

  -- Support Rating: upgraded to '2' from '3'

  -- Subordinated debt: upgraded to 'BBB-' from 'BB'; removed from
     RWP

The Long- and Short-term IDRs, National Long-term and Support
ratings of Finansbank A.S. are driven by potential support from
its foreign shareholder, National Bank of Greece (NBG, rated
'BBB+'/Stable).  While potential support from NBG is considered
strong, NBG's ability to provide such support, in case of need, is
considered by the agency to be not as strong as for the banks
referenced in the group above whose foreign shareholders are more
highly rated than NBG.  As such, Finansbank's LTLC IDR is rated
one notch above the sovereign's LTLC IDR.  The banks' LTFC IDR is
not constrained by Turkey's Country Ceiling.  The upgrade of the
bank's Support rating to '2' reflects the upgrade of the LTFC IDR
to the Country Ceiling of 'BBB-'.

FINANSBANK A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '2' from '3'

The Long- and Short-term IDRs, National Long-term and Support
ratings of this bank, Kuveyt Turk Katilim Bankasi A.S, reflects
Fitch's view of the probability of support from its 62.2% owner,
Kuwait Finance House (KFH, rated 'A+'/Stable/Individual Rating
'C/D'/Rating Watch Negative/'F1').  KFH's Long-term IDR is in turn
driven by support from the Kuwaiti sovereign (rated 'AA'/Stable),
and Fitch believes this support would, to an extent, also flow to
the strategically important Turkish subsidiary, if required.
Kuveyt Turk Katilim Bankasi A.S's LTLC IDR has been affirmed at
one notch above Turkey's sovereign LTLC IDR.  The bank's LTFC IDR
has been upgraded to the Country Ceiling level and is not
constrained.  The upgrade of the bank's Support rating reflects
the upgrade of its LTFC IDR to the Country Ceiling of 'BBB-'.

KUVEYT TURK KATILIM BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

The Long-term IDRs, Support rating and National Long-term rating
of this bank, Alternatifbank A.S., are driven by potential support
from ABank's majority shareholder, Anadolu Group, in case of need.
Fitch does not rate Anadolu Group.  However, the agency rates the
group's main operating subsidiary, Anadolu Efes Biracilik ve Malt
Sanayi A.S. (Anadolu Efes, rated 'BB+'/Negative) and bases its
opinion on potential support for ABank on this rating.  As Anadolu
Efes's LTFC IDR has been upgraded to 'BB+' following the sovereign
upgrade, ABank's LTFC IDR has been upgraded to 'BB'.  The Negative
Outlook for the LTFC IDR of ABank reflects a similar Outlook for
Anadolu Efes' LT IDRs.

ALTERNATIFBANK A.S.

  -- LTFC IDR: upgraded to 'BB' from 'BB-'; Outlook Negative

  -- LTLC IDR: affirmed at 'BB'; Outlook changed to Negative from
     Stable

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term rating: affirmed at 'AA(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

The Long-term IDRs of this bank, Bankpozitif Kredi Ve Kalkinma
Bankasi A.S., are driven by potential support from its highly-
rated foreign shareholder, Bank Hapoalim B.M. (rated 'A-'/Stable)
which controls 69.83% of the bank.  Bank Hapoalim's LTFC IDR is
driven by support from the Israeli sovereign (rated 'A'/Stable).
Bankpozitif's LTLC IDR has been affirmed one notch above the
Turkish sovereign's LTLC IDR.  Bankpozitif's LTFC IDR has been
upgraded to the Country Ceiling and is not constrained.  The
upgrade of the bank's Support rating reflects the upgrade of
bank's LTFC IDR to the Country Ceiling of 'BBB-'.

BANKPOZITIF KREDI VE KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

  -- Senior unsecured debt: upgraded to 'BBB-' from 'BB'; removed
     from RWP

  -- Subordinated debt: upgraded to 'BB+' from 'BB-'; removed from
     RWP

The LT IDRs of this bank, Turkland Bank A.S., are also driven by
potential support from its highly-rated foreign shareholder, Arab
Bank plc which is ultimately owned by Arab Bank group (rated 'A-
'/Stable) which controls 50% of the bank.  Lebanon-based Bank Med
Sal holds a 41% stake in Turkland.  While Arab Bank group and Bank
Med Sal are partners in several joint ventures, Bank Med Sal is
not rated by Fitch and thus the agency is not able to form a clear
opinion of its ability to support Turkland, alongside Arab Bank
group, in case of need.  Turkland's LTLC IDR has been affirmed one
notch above the sovereign's LTLC IDR.  The bank's LTFC IDR is not
constrained by Turkey's Country Ceiling.  The upgrade of the
Support rating reflects the upgrade of the bank's LTFC IDR to the
Country Ceiling of 'BBB-'.

TURKLAND BANK A.S.

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

The Long-term IDRs of these systemically important banks are
driven by their intrinsic financial strength which is reflected in
their Individual ratings of 'C'.  Their LTLC IDRs are rated one
notch above the sovereign's LTLC IDR, and the LTFC IDRs are rated
at the Country Ceiling level and are not constrained.  Fitch
considers that, in case of need, they would receive support from
the Turkish state and the Turkish sovereign's improving capacity
to provide such support has resulted in an upgrade of their
Support ratings and a revision of their Support Rating Floors.

TURKIYE IS BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

TURKIYE GARANTI BANKASI A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

AKBANK T.A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

The upgrade of this bank's LTFC IDR reflects the similar rating
action taken on its parent's (Turkiye Is Bankasi A.S.) rating.
The parent's improved ability to support its subsidiary has
resulted in the upgrade of the bank's LTFC IDR.

TURKIYE SINAI KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BB+'; removed from RWP; assigned Stable
     Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'; removed from RWP

  -- National Long-term rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

The IDRs of the entities below are equalized with those of their
parents, reflecting integration and committed support, and
therefore move in tandem with the rating action taken on their
parents' ratings.

GARANTI FINANSAL KIRALAMA A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating: upgraded to '2' from '3'

IS FINANSAL KIRALAMA A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating upgraded to '2' from '3'

GARANTI FAKTORING HIZMETLERI A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating: upgraded to '2' from '3'

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


CALIK HOLDING: Fitch Revises National Ratings After Recalibration
-----------------------------------------------------------------
Fitch Ratings has revised the National ratings of four Turkish
issuers following a recalibration of the Turkish National scale.
The affected issuers are Metropolitan Municipality of Istanbul,
Metropolitan Municipality of Bursa, Habas Sinai ve Tibbi Gazlar
Istihsal Endustrisi A.S. and Calik Holding.

The recalibration allows for greater ratings diversification
across the whole scale, although there has been some rating
compression at the upper end as a result of an improved relative
perception of the sovereign risk.

Affected issuers:

  -- Metropolitan Municipality of Istanbul 'AA(tur)', Stable
     Outlook

  -- Metropolitan Municipality of Bursa: 'A(tur)', Stable Outlook

  -- Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S.:
     'A(tur)', Stable Outlook

  -- Calik Holding: 'BB-(tur)', Negative Outlook

Others Turkish National ratings are unaffected by the
recalibration and have therefore been affirmed:

  -- Akbank T.A.S.: 'AAA(tur)', Stable Outlook

  -- Bankpozitif Kredi ve Kalkinma Bankasi A.S.: 'AAA(tur)',
     Stable Outlook

  -- Denizbank A.S.: 'AAA(tur)', Stable Outlook

  -- Finansbank A.S.: 'AAA(tur)', Stable Outlook

  -- Garanti Faktoring Hizmetleri A.S.: 'AAA(tur)', Stable
     Outlook

  -- Garanti Finansal Kiralama A.S.: 'AAA(tur)', Stable Outlook

  -- Is Finansal Kiralama A.S.: 'AAA(tur)', Stable Outlook

  -- Is Yatirim Menkul Degerler A.S.: 'AAA(tur)', Stable Outlook

  -- Kuveyt Turk Katilim Bankasi A.S,: 'AAA(tur)', Stable Outlook

  -- Turk Ekonomi Bankasi A.S.: 'AAA(tur)', Stable Outlook

  -- Turkiye Garanti Bankasi A.S.: 'AAA(tur)', Stable Outlook

  -- Turkiye Is Bankasi A.  S.: 'AAA(tur)', Stable Outlook

  -- Turkiye Petrol Rafinerileri A.S. (TUPRAS): 'AAA(tur)',
     Stable Outlook

  -- Turklandbank A.S.: 'AAA(tur)', Stable Outlook

  -- Yapi ve Kredi Bankasi A.S.: 'AAA(tur)', Stable Outlook

  -- T.C.  Ziraat Bankasi A.S.: 'AA+(tur)', Stable Outlook

  -- Toplu Konut Idaresi Baskanligi 'AA+(tur)', Stable
     Outlook

  -- Turkiye Halk Bankasi A.S.: 'AA+(tur)', Stable Outlook

  -- Turkiye Kalkinma Bankasi A.S.: 'AA+(tur)', Stable Outlook

  -- Turkiye Sinai Kalkinma Bankasi A.S.: 'AA+(tur)', Stable
     Outlook

  -- Turkiye Vakiflar Bankasi T.A.O.  'AA+(tur)', Stable Outlook

  -- Is Real Estate Investment Company (IS REIC): 'AA+(tur)',
     Stable Outlook

  -- Anadolu Efes Biracilik ve Malt Sanayii A.S.: 'AA+(tur)',
     Negative Outlook

  -- Alternatifbank A.S. 'AA(tur)', Stable Outlook

  -- Mapfre Genel Sigorta A.S. (Insurer Financial Strength):
     'AA(tur)', Stable Outlook

  -- Metropolitan Municipality of Izmir 'AA-(tur)', Stable Outlook

  -- Petrol Ofisi A.S.: 'AA-(tur)', Stable Outlook

  -- Arcelik: 'AA-(tur)', Negative Outlook

  -- Petkim Petrokimya Holdings A.S.: 'AA-(tur)', Negative Outlook

  -- Albaraka Turk A.S.: 'A+(tur)', Stable Outlook

  -- Anadolubank A.S.: 'A+(tur)', Stable Outlook

  -- Hurriyet Gazetecilik ve Matbaacilik A.S.: 'A(tur)', Rating
     Watch Negative

  -- Sekerbank T.A.S.: BBB+(tur)', Stable Outlook

  -- Asya Katilim Bankasi A.S.: 'BBB+(tur)', Stable Outlook

  -- Tekstil Bankasi A.S.: 'BBB+(tur)', Stable Outlook

  -- Ekspo Faktoring A.S. 'BBB+(tur), Stable Outlook

  -- Lider Faktoring Hizmetleri A.S.: 'BBB+(tur)', Stable Outlook

  -- GAP Guneydogu Tekstil San.Ve Tic.  A.S: 'BBB+(tur)', Stable
     Outlook

  -- Merinos Hali Sanayi ve Ticaret A.S.: 'BBB+(tur)', Rating
     Watch Negative

  -- Optima Faktoring Hizmetleri A.S.: 'BBB-(tur)', Stable Outlook

  -- Yasar Holding A.S.: 'BBB-(tur)': Negative Outlook

  -- Yapi Kredi Portfoy Yonetimi A.S.: 'M2+(tur)'

  -- Ata Portfolio Management: 'M3+(tur)'


KUVEYT TURK: Fitch Affirms Individual Rating at 'D'
---------------------------------------------------
Fitch Ratings has corrected the version issued on
December 11, 2009.  The Support ratings of Garanti Finansal
Kiralama A.S., Garanti Faktoring Hizmetleri A.S. and Is Finansal
Kiralama A.S. are all upgraded to '2' from '3', and not affirmed
at '3' as previously stated.

Fitch Ratings has upgraded 19 Turkish banks' and financial
institutions' Long- and Short-term foreign and local currency
Issuer Default Ratings and Support Ratings and revised their
Support Rating Floors.  A full rating breakdown is provided below.

The rating actions reflect Fitch's upgrade of the Republic of
Turkey's Long-term foreign currency IDR to 'BB+' from 'BB-' and
the Long-term local currency IDR to 'BB+' from 'BB' on 3 December
2009.  The sovereign's Long-term IDRs were removed from Rating
Watch Positive and assigned a Stable Outlook.  Turkey's Short-term
IDR was affirmed at 'B' and its Country Ceiling was upgraded to
'BBB-' from 'BB'.  (For further information, please see the 3
December 2009 comment, entitled 'Fitch Upgrades Turkey's Sovereign
Rating Two Notches to 'BB+', which is available at
www.fitchratings.com.)

The IDRs of the Turkish banks referenced in the group below move
in tandem with the sovereign's IDRs.  These banks are state-owned
or state-controlled and their IDRs are thus equalized with those
of the Turkish sovereign.  The upgrade of the Support Ratings and
the revision of Support Rating Floors of these banks reflect the
improved capacity of the sovereign to provide such support.

T. C. ZIRAAT BANKASI A.S.:

  -- Long-term foreign currency (LTFC) IDR: upgraded to 'BB+' from
     'BB-'; removed from Rating Watch Positive (RWP); assigned
     Stable Outlook

  -- Long-term local currency (LTLC) IDR: upgraded to 'BB+' from
     'BB'; removed from RWP; assigned Stable Outlook

  -- Short-term foreign currency (STFC) IDR: affirmed at 'B'

  -- Short-term local currency (STLC) IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE HALK BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE VAKIFLAR BANKASI T.A.O.

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     RWP

The Long- and Short-term IDRs, National Long-term and Support
ratings of this group of banks are driven by potential support
from highly-rated foreign shareholders.  The banks' LTLC IDRs are
capped two notches above the sovereign's LTLC IDR.  The LTFC IDRs
of these banks are constrained by Turkey's Country Ceiling of
'BBB-'.  The upgrade of the banks' Support ratings, as referenced
in the group below, to '2' reflects the upgrade of their LTFC IDRs
to the Country Ceiling of 'BBB-'.

YAPI VE KREDI BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

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

  -- Support Rating: upgraded to '2' from '3'

DENIZBANK A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '2' from '3'

TURK EKONOMI BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

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

  -- Support Rating: upgraded to '2' from '3'

  -- Subordinated debt: upgraded to 'BBB-' from 'BB'; removed from
     RWP

The Long- and Short-term IDRs, National Long-term and Support
ratings of Finansbank A.S. are driven by potential support from
its foreign shareholder, National Bank of Greece (NBG, rated
'BBB+'/Stable).  While potential support from NBG is considered
strong, NBG's ability to provide such support, in case of need, is
considered by the agency to be not as strong as for the banks
referenced in the group above whose foreign shareholders are more
highly rated than NBG.  As such, Finansbank's LTLC IDR is rated
one notch above the sovereign's LTLC IDR.  The banks' LTFC IDR is
not constrained by Turkey's Country Ceiling.  The upgrade of the
bank's Support rating to '2' reflects the upgrade of the LTFC IDR
to the Country Ceiling of 'BBB-'.

FINANSBANK A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '2' from '3'

The Long- and Short-term IDRs, National Long-term and Support
ratings of this bank, Kuveyt Turk Katilim Bankasi A.S, reflects
Fitch's view of the probability of support from its 62.2% owner,
Kuwait Finance House (KFH, rated 'A+'/Stable/Individual Rating
'C/D'/Rating Watch Negative/'F1').  KFH's Long-term IDR is in turn
driven by support from the Kuwaiti sovereign (rated 'AA'/Stable),
and Fitch believes this support would, to an extent, also flow to
the strategically important Turkish subsidiary, if required.
Kuveyt Turk Katilim Bankasi A.S's LTLC IDR has been affirmed at
one notch above Turkey's sovereign LTLC IDR.  The bank's LTFC IDR
has been upgraded to the Country Ceiling level and is not
constrained.  The upgrade of the bank's Support rating reflects
the upgrade of its LTFC IDR to the Country Ceiling of 'BBB-'.

KUVEYT TURK KATILIM BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

The Long-term IDRs, Support rating and National Long-term rating
of this bank, Alternatifbank A.S., are driven by potential support
from ABank's majority shareholder, Anadolu Group, in case of need.
Fitch does not rate Anadolu Group.  However, the agency rates the
group's main operating subsidiary, Anadolu Efes Biracilik ve Malt
Sanayi A.S. (Anadolu Efes, rated 'BB+'/Negative) and bases its
opinion on potential support for ABank on this rating.  As Anadolu
Efes's LTFC IDR has been upgraded to 'BB+' following the sovereign
upgrade, ABank's LTFC IDR has been upgraded to 'BB'.  The Negative
Outlook for the LTFC IDR of ABank reflects a similar Outlook for
Anadolu Efes' LT IDRs.

ALTERNATIFBANK A.S.

  -- LTFC IDR: upgraded to 'BB' from 'BB-'; Outlook Negative

  -- LTLC IDR: affirmed at 'BB'; Outlook changed to Negative from
     Stable

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term rating: affirmed at 'AA(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

The Long-term IDRs of this bank, Bankpozitif Kredi Ve Kalkinma
Bankasi A.S., are driven by potential support from its highly-
rated foreign shareholder, Bank Hapoalim B.M. (rated 'A-'/Stable)
which controls 69.83% of the bank.  Bank Hapoalim's LTFC IDR is
driven by support from the Israeli sovereign (rated 'A'/Stable).
Bankpozitif's LTLC IDR has been affirmed one notch above the
Turkish sovereign's LTLC IDR.  Bankpozitif's LTFC IDR has been
upgraded to the Country Ceiling and is not constrained.  The
upgrade of the bank's Support rating reflects the upgrade of
bank's LTFC IDR to the Country Ceiling of 'BBB-'.

BANKPOZITIF KREDI VE KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

  -- Senior unsecured debt: upgraded to 'BBB-' from 'BB'; removed
     from RWP

  -- Subordinated debt: upgraded to 'BB+' from 'BB-'; removed from
     RWP

The LT IDRs of this bank, Turkland Bank A.S., are also driven by
potential support from its highly-rated foreign shareholder, Arab
Bank plc which is ultimately owned by Arab Bank group (rated 'A-
'/Stable) which controls 50% of the bank.  Lebanon-based Bank Med
Sal holds a 41% stake in Turkland.  While Arab Bank group and Bank
Med Sal are partners in several joint ventures, Bank Med Sal is
not rated by Fitch and thus the agency is not able to form a clear
opinion of its ability to support Turkland, alongside Arab Bank
group, in case of need.  Turkland's LTLC IDR has been affirmed one
notch above the sovereign's LTLC IDR.  The bank's LTFC IDR is not
constrained by Turkey's Country Ceiling.  The upgrade of the
Support rating reflects the upgrade of the bank's LTFC IDR to the
Country Ceiling of 'BBB-'.

TURKLAND BANK A.S.

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

The Long-term IDRs of these systemically important banks are
driven by their intrinsic financial strength which is reflected in
their Individual ratings of 'C'.  Their LTLC IDRs are rated one
notch above the sovereign's LTLC IDR, and the LTFC IDRs are rated
at the Country Ceiling level and are not constrained.  Fitch
considers that, in case of need, they would receive support from
the Turkish state and the Turkish sovereign's improving capacity
to provide such support has resulted in an upgrade of their
Support ratings and a revision of their Support Rating Floors.

TURKIYE IS BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

TURKIYE GARANTI BANKASI A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

AKBANK T.A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

The upgrade of this bank's LTFC IDR reflects the similar rating
action taken on its parent's (Turkiye Is Bankasi A.S.) rating.
The parent's improved ability to support its subsidiary has
resulted in the upgrade of the bank's LTFC IDR.

TURKIYE SINAI KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BB+'; removed from RWP; assigned Stable
     Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'; removed from RWP

  -- National Long-term rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

The IDRs of the entities below are equalized with those of their
parents, reflecting integration and committed support, and
therefore move in tandem with the rating action taken on their
parents' ratings.

GARANTI FINANSAL KIRALAMA A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating: upgraded to '2' from '3'

IS FINANSAL KIRALAMA A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating upgraded to '2' from '3'

GARANTI FAKTORING HIZMETLERI A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating: upgraded to '2' from '3'

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


SEKERBANK TAS: Fitch Affirms Individual Rating at 'D'
-----------------------------------------------------
Fitch Ratings has affirmed Turkey-based Sekerbank T.A.S.'s Long-
and Short-term foreign and local currency Issuer Default Ratings
at 'B' respectively.  The agency has simultaneously affirmed
Sekerbank's National Long-term rating at 'BBB+(tur)', Individual
'D', Support '5' and Support Rating Floor at 'No Floor'.  The
Outlooks for the Long-term IDRs and National Long-term rating are
Stable.

The IDRs and the Individual Rating reflect weakening asset quality
and pressures on profitability from the risk of further
deterioration in a difficult operating environment.  These factors
are counterbalanced by improved capitalization, better efficiency
and a well-diversified core deposit base.

Despite continued increase in credit impairment charges, operating
profitability improved significantly in 9M09, mainly due to cost
restraint.  However, profitability is under pressure from
increasing credit impairment charges and the risk of narrowing
margins.  Greater contribution from non-interest income would
provide some earnings stability, while higher penetration from its
existing branches and cost restraint would help to sustain
improvements in efficiency and provide a buffer against increasing
impairment charges.

The loan portfolio is dominated by short-term Turkish lira SME
loans.  Asset quality has deteriorated significantly, driven by
large corporate loans, while loan growth slowed in a contracting
economy following rapid expansion since 2006.  Impaired loan ratio
is 8.3% and nominal reserve coverage of loans fell to 69% at end-
Q309 from 93% at end-2008, which just meets the regulatory
requirement.  Asset quality of its SME loans remains better
compared with the sector's average.  Nevertheless, the risk of
asset quality deterioration remains, due to some concentration in
the loan portfolio in large corporates, previously rapid loan
growth, and the difficult operating environment.

The bank's stable, well-diversified core deposits base remains its
main strength and major funding source.  Long-term funding from
international financial institutions supports Sekerbank's core SME
business in an environment where access to international funding
is difficult.  The Fitch-eligible capital ratio improved to 17.14%
of risk-weighted assets at end-Q309 from 13.46% at end-2008 as a
result of an increase in cash capital and retained earnings.  In
Fitch's opinion, capitalization is only adequate, given the bank's
growth plans, pressures on profitability from continued asset
quality deterioration and less than 100% nominal coverage of
impaired loans.

Sekerbank s pension fund and TuranAlem Securities JSC of
Kazakhstan each holds 33.98% of the bank's shares.  The remaining
shares are publicly held.  Sekerbank provides a wide range of
banking services through its 256 branches, with a focus on SMEs
(including micro businesses and agricultural customers) and retail
lending.

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


TURKIYE KALKINMA: Fitch Affirms Individual Rating at 'D'
--------------------------------------------------------
Fitch Ratings has corrected the version issued on
December 11, 2009.  The Support ratings of Garanti Finansal
Kiralama A.S., Garanti Faktoring Hizmetleri A.S. and Is Finansal
Kiralama A.S. are all upgraded to '2' from '3', and not affirmed
at '3' as previously stated.

Fitch Ratings has upgraded 19 Turkish banks' and financial
institutions' Long- and Short-term foreign and local currency
Issuer Default Ratings and Support Ratings and revised their
Support Rating Floors.  A full rating breakdown is provided below.

The rating actions reflect Fitch's upgrade of the Republic of
Turkey's Long-term foreign currency IDR to 'BB+' from 'BB-' and
the Long-term local currency IDR to 'BB+' from 'BB' on 3 December
2009.  The sovereign's Long-term IDRs were removed from Rating
Watch Positive and assigned a Stable Outlook.  Turkey's Short-term
IDR was affirmed at 'B' and its Country Ceiling was upgraded to
'BBB-' from 'BB'.  (For further information, please see the 3
December 2009 comment, entitled 'Fitch Upgrades Turkey's Sovereign
Rating Two Notches to 'BB+', which is available at
www.fitchratings.com.)

The IDRs of the Turkish banks referenced in the group below move
in tandem with the sovereign's IDRs.  These banks are state-owned
or state-controlled and their IDRs are thus equalized with those
of the Turkish sovereign.  The upgrade of the Support Ratings and
the revision of Support Rating Floors of these banks reflect the
improved capacity of the sovereign to provide such support.

T. C. ZIRAAT BANKASI A.S.:

  -- Long-term foreign currency (LTFC) IDR: upgraded to 'BB+' from
     'BB-'; removed from Rating Watch Positive (RWP); assigned
     Stable Outlook

  -- Long-term local currency (LTLC) IDR: upgraded to 'BB+' from
     'BB'; removed from RWP; assigned Stable Outlook

  -- Short-term foreign currency (STFC) IDR: affirmed at 'B'

  -- Short-term local currency (STLC) IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE HALK BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE VAKIFLAR BANKASI T.A.O.

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     from RWP

TURKIYE KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB-'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term Rating: affirmed at 'AA+(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: revised to 'BB+' from 'BB-'; removed
     RWP

The Long- and Short-term IDRs, National Long-term and Support
ratings of this group of banks are driven by potential support
from highly-rated foreign shareholders.  The banks' LTLC IDRs are
capped two notches above the sovereign's LTLC IDR.  The LTFC IDRs
of these banks are constrained by Turkey's Country Ceiling of
'BBB-'.  The upgrade of the banks' Support ratings, as referenced
in the group below, to '2' reflects the upgrade of their LTFC IDRs
to the Country Ceiling of 'BBB-'.

YAPI VE KREDI BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

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

  -- Support Rating: upgraded to '2' from '3'

DENIZBANK A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '2' from '3'

TURK EKONOMI BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: upgraded to 'BBB' from 'BBB-'; removed from RWP;
     assigned Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

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

  -- Support Rating: upgraded to '2' from '3'

  -- Subordinated debt: upgraded to 'BBB-' from 'BB'; removed from
     RWP

The Long- and Short-term IDRs, National Long-term and Support
ratings of Finansbank A.S. are driven by potential support from
its foreign shareholder, National Bank of Greece (NBG, rated
'BBB+'/Stable).  While potential support from NBG is considered
strong, NBG's ability to provide such support, in case of need, is
considered by the agency to be not as strong as for the banks
referenced in the group above whose foreign shareholders are more
highly rated than NBG.  As such, Finansbank's LTLC IDR is rated
one notch above the sovereign's LTLC IDR.  The banks' LTFC IDR is
not constrained by Turkey's Country Ceiling.  The upgrade of the
bank's Support rating to '2' reflects the upgrade of the LTFC IDR
to the Country Ceiling of 'BBB-'.

FINANSBANK A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '2' from '3'

The Long- and Short-term IDRs, National Long-term and Support
ratings of this bank, Kuveyt Turk Katilim Bankasi A.S, reflects
Fitch's view of the probability of support from its 62.2% owner,
Kuwait Finance House (KFH, rated 'A+'/Stable/Individual Rating
'C/D'/Rating Watch Negative/'F1').  KFH's Long-term IDR is in turn
driven by support from the Kuwaiti sovereign (rated 'AA'/Stable),
and Fitch believes this support would, to an extent, also flow to
the strategically important Turkish subsidiary, if required.
Kuveyt Turk Katilim Bankasi A.S's LTLC IDR has been affirmed at
one notch above Turkey's sovereign LTLC IDR.  The bank's LTFC IDR
has been upgraded to the Country Ceiling level and is not
constrained.  The upgrade of the bank's Support rating reflects
the upgrade of its LTFC IDR to the Country Ceiling of 'BBB-'.

KUVEYT TURK KATILIM BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

The Long-term IDRs, Support rating and National Long-term rating
of this bank, Alternatifbank A.S., are driven by potential support
from ABank's majority shareholder, Anadolu Group, in case of need.
Fitch does not rate Anadolu Group.  However, the agency rates the
group's main operating subsidiary, Anadolu Efes Biracilik ve Malt
Sanayi A.S. (Anadolu Efes, rated 'BB+'/Negative) and bases its
opinion on potential support for ABank on this rating.  As Anadolu
Efes's LTFC IDR has been upgraded to 'BB+' following the sovereign
upgrade, ABank's LTFC IDR has been upgraded to 'BB'.  The Negative
Outlook for the LTFC IDR of ABank reflects a similar Outlook for
Anadolu Efes' LT IDRs.

ALTERNATIFBANK A.S.

  -- LTFC IDR: upgraded to 'BB' from 'BB-'; Outlook Negative

  -- LTLC IDR: affirmed at 'BB'; Outlook changed to Negative from
     Stable

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'

  -- National Long-term rating: affirmed at 'AA(tur)'; Stable
     Outlook

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '3'

The Long-term IDRs of this bank, Bankpozitif Kredi Ve Kalkinma
Bankasi A.S., are driven by potential support from its highly-
rated foreign shareholder, Bank Hapoalim B.M. (rated 'A-'/Stable)
which controls 69.83% of the bank.  Bank Hapoalim's LTFC IDR is
driven by support from the Israeli sovereign (rated 'A'/Stable).
Bankpozitif's LTLC IDR has been affirmed one notch above the
Turkish sovereign's LTLC IDR.  Bankpozitif's LTFC IDR has been
upgraded to the Country Ceiling and is not constrained.  The
upgrade of the bank's Support rating reflects the upgrade of
bank's LTFC IDR to the Country Ceiling of 'BBB-'.

BANKPOZITIF KREDI VE KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

  -- Senior unsecured debt: upgraded to 'BBB-' from 'BB'; removed
     from RWP

  -- Subordinated debt: upgraded to 'BB+' from 'BB-'; removed from
     RWP

The LT IDRs of this bank, Turkland Bank A.S., are also driven by
potential support from its highly-rated foreign shareholder, Arab
Bank plc which is ultimately owned by Arab Bank group (rated 'A-
'/Stable) which controls 50% of the bank.  Lebanon-based Bank Med
Sal holds a 41% stake in Turkland.  While Arab Bank group and Bank
Med Sal are partners in several joint ventures, Bank Med Sal is
not rated by Fitch and thus the agency is not able to form a clear
opinion of its ability to support Turkland, alongside Arab Bank
group, in case of need.  Turkland's LTLC IDR has been affirmed one
notch above the sovereign's LTLC IDR.  The bank's LTFC IDR is not
constrained by Turkey's Country Ceiling.  The upgrade of the
Support rating reflects the upgrade of the bank's LTFC IDR to the
Country Ceiling of 'BBB-'.

TURKLAND BANK A.S.

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: upgraded to '2' from '3'

The Long-term IDRs of these systemically important banks are
driven by their intrinsic financial strength which is reflected in
their Individual ratings of 'C'.  Their LTLC IDRs are rated one
notch above the sovereign's LTLC IDR, and the LTFC IDRs are rated
at the Country Ceiling level and are not constrained.  Fitch
considers that, in case of need, they would receive support from
the Turkish state and the Turkish sovereign's improving capacity
to provide such support has resulted in an upgrade of their
Support ratings and a revision of their Support Rating Floors.

TURKIYE IS BANKASI A.S:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

TURKIYE GARANTI BANKASI A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

AKBANK T.A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR: affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Individual Rating: affirmed at 'C'

  -- Support Rating: upgraded to '3' from '4'; removed from RWP

  -- Support Rating Floor: revised to 'BB' from 'B+'; removed from
     RWP

The upgrade of this bank's LTFC IDR reflects the similar rating
action taken on its parent's (Turkiye Is Bankasi A.S.) rating.
The parent's improved ability to support its subsidiary has
resulted in the upgrade of the bank's LTFC IDR.

TURKIYE SINAI KALKINMA BANKASI A.S:

  -- LTFC IDR: upgraded to 'BB+' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BB+'; removed from RWP; assigned Stable
     Outlook

  -- STFC IDR: affirmed at 'B'

  -- STLC IDR: affirmed at 'B'; removed from RWP

  -- National Long-term rating: affirmed at 'AA+(tur)'; Stable
     Outlook

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

  -- Support Rating: affirmed at '3'

The IDRs of the entities below are equalized with those of their
parents, reflecting integration and committed support, and
therefore move in tandem with the rating action taken on their
parents' ratings.

GARANTI FINANSAL KIRALAMA A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating: upgraded to '2' from '3'

IS FINANSAL KIRALAMA A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating upgraded to '2' from '3'

GARANTI FAKTORING HIZMETLERI A.S.:

  -- LTFC IDR: upgraded to 'BBB-' from 'BB'; removed from RWP;
     assigned Stable Outlook

  -- LTLC IDR affirmed at 'BBB-'; removed from RWP; assigned
     Stable Outlook

  -- STFC IDR: upgraded to 'F3' from 'B'

  -- STLC IDR: affirmed at 'F3'

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

  -- Support rating: upgraded to '2' from '3'

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


TURKLAND BANK: Fitch Affirms Individual Rating at 'D'
-----------------------------------------------------
Fitch Ratings has affirmed Turkland Bank A.S.'s Long-term foreign
and local currency Issuer Default Ratings at 'BBB-' and its Short-
term foreign and local currency IDRs at 'F3'.  The Outlooks on
both Long-term IDRs are Stable.  Fitch has simultaneously affirmed
T-Bank's Individual Rating at 'D' and Support Rating at '2'.  The
National Long-term rating is affirmed at 'AAA(tur)' with a Stable
Outlook.

The IDRs of T-Bank are driven by potential support from its
immediate parent, Arab Bank plc, which is ultimately owned by Arab
Bank group (rated 'A-'/Stable).  The Individual Rating reflects
the bank's limited franchise and risks associated with executing
its growth plans in a challenging economic environment.  These are
counterbalanced by strengthened internal risk systems and
management, and strong capitalization set to support its planned
growth.

Operating profitability in H109 benefited from a strengthened
lending franchise and favorable market conditions that underpinned
a marked improvement in margins.  Loan growth remained subdued in
2009, in line with the banking sector in general following two
consecutive years of strong growth.  Sharp economic contraction
has caused the impaired loan ratio to increase to 4.5% at end-H109
-compared to the banking sector average of 4.9% as of same date-
from an average of above 2% in previous years.  While impaired
loans are fully reserved, planned growth with an increasing SME
lending component poses potential asset quality risks.

Customer deposits remain the main source of funding and have
become more diversified, while T-Bank maintains continued access
to markets via syndicated and bilateral loans.  The bank's capital
ratios are among the sector's highest and can comfortably support
additional growth.  Shareholders remain committed to providing
cash injections during initial expansion phases, when internal
capital generation is expected to be limited.

T-Bank is a small commercial bank and had 25 branches at end-Q309,
covering the commercial centers of major Turkish cities.  The bank
provides corporate, commercial and SME banking services and offers
retail banking as a complementary business.  The bank is 50% owned
by Arab Bank plc (ultimately owned by Arab Bank Group), 41% by
BankMed Sal and 9% by Mehmet Nazif Gunal.

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


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


KHARKIVMETROBUD OJSC: SPF to Sell Stake at March 2010 Auction
-------------------------------------------------------------
Interfax-Ukraine reports that the State Property Fund is planning
to sell a 50% plus one share "state stake" in OJSC Kharkivmetrobud
at an auction scheduled for March 9, 2010.

According to the report, the starting price of the state stake,
which consists of shares with a face value of UAH0.05, is UAH3
million.

The report says the winning buyer should pay off the company's
debts, which were UAH19.387 million in September 2009, and wage
arrears, which were UAH 4.738 million by November 1.

The report recalls the economic court in Kharkiv opened a case on
the bankruptcy of Kharkivmetrobud in April 2009 and introduced a
moratorium on the satisfaction of the creditors' demands.  On
November 16, the court made a decision on the company's
reorganization, the report recounts.

The report says the Cabinet of Ministers of Ukraine in August
approved a plan for selling part of the company, according to
which the 50% plus one share state stake in the company is to be
sold at an auction.  Arca Capital owns a 38% stake in
Kharkivmetrobud, the report notes.


UKRAINIAN FOOD: Kyiv Court Opens Bankruptcy Proceedings
-------------------------------------------------------
Sokrat reports that the Economic Court of Kyiv has instituted
legal proceedings on the bankruptcy of the Ukrainian Food Company.

According to the report, the company was once a major player on
the Ukrainian sugar market that united 14 sugar mills and several
agro firms.

The report recalls in 2008, UFC faced a shortage in its sugar beet
supply and decided to exit the market.


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


CORNERSTONE TITAN: Fitch Cuts Rating on Class D Notes to 'BB'
-------------------------------------------------------------
Fitch Ratings has downgraded Cornerstone Titan 2005-1 plc's class
B, C and D CMBS notes and affirmed the transaction's class A1, A2
and class X notes as detailed below.  The Outlooks for the class
B, C and D are Negative.

  -- GBP63.3 million class A1 (XS0227570834) affirmed at 'AAA';
     Outlook Stable

  -- GBP58.5 million class A2 (XS0229452890) affirmed at 'AAA';
     Outlook Stable

  -- GBP5,000 class X (XS0227573853) affirmed at 'AAA'; Outlook
     Stable

  -- GBP27.2 million class B (XS0227571139) downgraded to 'AA'
     from 'AAA'; Outlook Negative

  -- GBP33.4 million class C (XS0227571642) downgraded to 'A' from
     'AA-'; Outlook Negative

  -- GBP54.4 million class D (XS0227571725) downgraded to 'BB'
     from 'BBB'; Outlook Negative

The downgrades of the junior notes reflect the continuing stress
in the UK commercial property market, which has impacted the
likelihood of the securitized loans being successfully refinanced
upon their respective maturity dates.  Although it is widely
acknowledged in the market that property yields have fallen
slightly over the last three months, Fitch considers the property
securing these loans to have experienced a weighted average market
value decline of 25% since the most recent valuations, implying a
Fitch loan-to-value ratio of 101%, compared to the reported WA LTV
of 75.1%.  The Trevelyan House and Jubilee Way loan collateral was
re-valued in H109, while the Bentima House and Eagle Office loan
collateral has not been re-valued since closing.  Fitch's criteria
for European CMBS were used to analyze the quality of the
underlying commercial loans.

The portfolio is dominated by the GBP223.9 million Eagle Office
loan (87.7% of the outstanding loan balance).  The loan is secured
by three office properties located in the London's financial
district and Midtown sub-markets, entirely or predominantly
single-let to large international law or financial services firms
that would generally be considered as supportive of strong
covenants.  The interest coverage ratio and debt service coverage
ratio have remained relatively static, at 1.43x and 1.19x
respectively as of the October 2009 interest payment date,
compared to 1.43x and 1.23x at closing.  Of the three major leases
in the properties, one is scheduled to expire in 2019 and the
remaining two in 2015, three years after loan maturity -
uncertainty regarding the future income potential of the
properties let on shorter leases at loan maturity is likely, in
Fitch's view, to impact the ability of the loan to be refinanced
at maturity, despite scheduled amortization prior to this date.
Fitch estimates the properties to have experienced an MVD of 25%
since closing, resulting in a Fitch LTV of 96%.

The GBP6.67 million Jubilee Way loan (2.6% of outstanding balance)
is in special servicing due to an ICR covenant breach at the April
2009 IPD.  The loan was partially prepaid following previous ICR
covenant breaches in 2006 and 2007, but the breach that occurred
in 2009 was not cured, leading to the loan's transfer into special
servicing on April 24, 2009.  Current ICR is 0.81x, although this
is calculated on a forward looking basis and no shortfalls have
been experienced to date.  In addition, the special servicer
ordered a revaluation of the property in June 2009 which showed a
66% MVD since closing.  Fitch believes a successful refinancing of
the loan at maturity in July 2010 seems unlikely.

The Trevelyan House loan (7.2%) was extended by two years when it
reached maturity in July 2009 to July 2011.  It is secured by a
single office building located in Victoria, London, which is fully
let to the Secretary of the State for the Environment (rated
'AAA'/'F1+'/Stable') on a lease which also expires in July 2011.
If the tenant decides not to renew its lease, the property value
would likely fall significantly, thereby impacting the likelihood
that the loan would be refinanced.  Due to the six-month notice
period on the lease, it should be clear by January 2011 whether
the tenant will seek to renew the lease or not.  Fitch will
monitor the situation in this regard closely.

The Bentima House loan (2.5%) is secured by a single, multi-
tenanted office building located in the City of London.  Since
closing, two properties securing the loan have been sold, with a
consequent increase in the performance of the loan.  The reported
ICR and DSCR as of the October IPD are 2.83x and 1.58x
respectively, up from 1.66x and 1.44x respectively at closing.
Fitch currently estimates LTV to be 56%.


JONGLEURS: To Reopen After Owners Ditched GBP100 Mln Debt
---------------------------------------------------------
Jongleurs, the chain of comedy clubs that went bust, is to re-open
under a different name after its owners ditched GBP100 million of
debts, The Sunday Times' Robert Watts and Chris Hastings said in a
report dated Dec. 20

The report recalled two months ago directors of Regent Inns, which
owned the Jongleurs chain, arranged a pre-pack administration that
allowed them to walk away from its debts and set up a new venture,
Intertain.  Jongleurs in Nottingham, Oxford, Southampton, Bristol
and Bow, in east London, closed when Regent Inns went into
administration, the report recounted.

Citing documents filed at Companies House, the report disclosed
Jongleurs owed GBP4 million to comedians, musicians, magicians and
other small creditors.

According to the report, Maria Kempinska, the founder of
Jongleurs, has now re-acquired the comedy chain's brand name and
is planning new clubs.


NAC EUROLOAN: Moody's Cuts Rating on Class C Notes to 'Ba2'
-----------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by NAC Euroloan Advantage I Limited.

  -- GBP 177,000,000 Class A-1 Senior Secured Floating Rate Notes
     due 2019 (currently GBP 154,806,133 outstanding), Downgraded
     to Aa3; previously on April 7, 2008 Aaa assigned

  -- US$130,000,000 Class A-2 Senior Secured Floating Rate Notes
     due 2019 (currently US$121,139,328 outstanding), Downgraded
     to Aa3; previously on April 7, 2008 Aaa assigned

  -- EUR54,000,000 Class A-3 Senior Secured Floating Rate Notes
     due 2019 (currently EUR30,318,921 outstanding), Downgraded
     to Aa3; previously on April 7, 2008 Aaa assigned

  -- EUR65,000,000 Class B Deferrable Senior Secured Floating
     Rate Notes (currently EUR65,000,000 outstanding), Downgraded
     to Baa2; previously on March 4, 2009 Aa1 Placed under Review
     for Possible Downgrade

  -- EUR8,000,000 Class C Deferrable Senior Secured Floating Rate
     Notes (currently EUR6,449,201 outstanding), Downgraded to
     Ba2; previously on March 4, 2009 A2 Placed under Review for
     Possible Downgrade

This transaction is a static cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans as well as about 19% 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 3719), an increase in the amount of defaulted
securities (currently ~EUR 50 million), an increase in the
proportion of securities from issuers rated Caa2 and below
(currently 15.34% of the portfolio), and a failure of Class A/B
par value tests (currently 108.08% compared to the 128.9% required
level) and the Additional Coverage Test I (currently 123.95%
compared to the 129.9% required level).  These measures were taken
from the recent trustee report dated 30 November 2009.  Moody's
also performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality
combined with a decrease in the expected recovery rates.  Due to
the impact of all aforementioned stresses, key model inputs used
by Moody's in its analysis, such as par, weighted average rating
factor, diversity score, and weighted average recovery rate, may
be different from the 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.


NORTHERN ROCK: Shareholders' Compensation Appeal Rejected
---------------------------------------------------------
Louise Armitstead and Philip Aldrick at The Telegraph report that
the Supreme Court has rejected an application by Northern Rock
plc's former shareholders to press ahead with a case against the
Government.

The report recalls earlier this month, the independent valuer,
Andrew Caldwell, ruled that shareholders in Northern Rock should
receive no compensation.

According to the report, SRM Global and RAB Capital, the hedge
funds leading the shareholders' fight, are now expected to take
the case straight to the European Court of Human Rights in
Strasbourg.  . They claim that the valuation process, as defined
by the Government, rigged the outcome, the report discloses.

The report relates SRM, run by Jon Wood, has taken issue with the
terms of Mr. Caldwell's engagement, which instruct him to assume
that "all financial assistance provided by the Bank of England or
the Treasury to Northern Rock has been withdrawn" and that the
lender is "in administration".

The shareholders' case has failed at the initial High Court
hearing and at appeal, the report says.  The Supreme Court is
expected formally to announce within the next few weeks its
decision to reject the shareholders application for a further
appeal, the report notes.

                       About Northern Rock

Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/-- deals with mortgages, savings
accounts, loans and insurance.  The company also promotes secured
loans to its existing mortgage customers.  The company had more
than US$200 billion in assets at the end of June 2007.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 11,
2009, Standard & Poor's Ratings Services raised Northern Rock's
dated subordinated lower Tier 2 debt rating
to 'BB' from 'CCC'.


SAPHIR FINANCE: Moody's Withdraws 'B3' Rating on 2006-9 Notes
-------------------------------------------------------------
Moody's Investors Service has withdrawn its rating of one class of
notes issued by Saphir Finance Plc

Issuer: Saphir Finance Plc

  -- Series 2006-9 GBP600,000,000 Perpetual Non-Cumulative
     Securities Notes, Withdrawn; previously on Jun 5, 2009
     Downgraded to B3

The rating action follows the redemption and cancellation of the
notes on the December 22, 2009.


* UK: Corporate Bankruptcies Reach 27,000, Research Shows
---------------------------------------------------------
Nigel Morris at The Independent, citing a Conservative party
research, reports that some 27,000 British companies have gone out
of business since the economic crisis began, more than any prior
recession, with 51 companies folding every day.

The report says a total of 26,978 businesses have gone into
liquidation or been declared insolvent since the recession began
in the second quarter of 2008.  That compares with 9,502 business
collapses in the 1980-81 recession during the early years of the
Thatcher government and 24,123 in the 1990-91 downturn under the
Thatcher and Major administrations, the report notes.

The Conservative research, based on figures from the Insolvency
Service, suggests the recession could be deepening, the report
states.


* UK: John Moulton Expects Increase in Number of Distressed Firms
-----------------------------------------------------------------
Caroline Binham at Bloomberg News, citing the Sunday Telegraph,
reports that John Moulton's Better Capital Ltd., a feeder fund,
has targeted 50 companies for investment.

According to Bloomberg, Mr. Moulton, as cited by the Telegraph,
said Better Capital won't invest in financial firms, and expects
the number of companies in distress to increase.


                            *********

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,
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                 * * * End of Transmission * * *