TCREUR_Public/100128.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

          Thursday, January 28, 2010, Vol. 11, No. 019

                            Headlines



B E L G I U M

GENERAL MOTORS: Belgian Unions File Suit Over Small SUV Project


F R A N C E

REMY COINTREAU: S&P Gives Stable Outlook; Affirms 'BB-' Rating


G E R M A N Y

BAYERISCHE LANDESBANK: Gerd Hausler Appointed New Chief Executive
KABEL DEUTSCHLAND: Private Equity Groups Eye EUR5-Bln Takeover Bid


G R E E C E

* GREECE: Mulls Bond Sale in Asia to Plug Budget Deficit


I C E L A N D

EXISTA HF: Iceland, SFO Conduct House Raids in Bakkavor Sale Probe


I R E L A N D

BR BAR: Faces Winding-Up Petition From Gerard Harrahill
DERON LIMITED: Creditors Meeting Set for February 5
J&R HOTELS: Faces Winding-Up Petition From Gerard Harrahill
MADOFF SECURITIES: HSBC Must Disclose Details in Investor Case
MCCARTHYS BAR: Faces Winding-Up Petition From Gerard Harrahill

MCK ENGINEERING: Creditors Meeting Set for February 5
SEANACHIE COTTAGES: Gerard Harrahill Files Winding-Up Petition
SKY DEVELOPMENTS: Creditors Meeting Set for February 5
SWILLY CONCRETE: Creditors Meeting Set for February 4
TITAN EUROPE: Fitch Cuts Ratings on Three Classes of Notes to 'CC'


I T A L Y

FIAT SPA: To Close Six Factories For Two Weeks Amid Poor Sales
ITALFINANCE SECURITIZATION: Moody's Withdraws Ratings on Notes

* ITALY: Banks Need to Further Boost Capital
* ITALY: Fitch Sees Moderate Corporate Bond Issuance This Year
* TARANTO: Fitch Affirms Foreign, Local Currency Ratings at 'RD'


K A Z A K H S T A N

* KAZAKHSTAN: Nazarbayev Wants Gov't to Limit Bank Profit Margins


N E T H E R L A N D S

BRUCKNER CDO: S&P Downgrades Rating on Class D-2 Notes to 'BB-'
E-MAC NL: Moody's Withdraws Ratings on All Classes of Notes


R U S S I A

BANCA INTESA: Moody's Affirms 'D-' Bank Financial Strength Rating
BANK OF MOSCOW: Fitch Gives Stable Outlook; Affirms 'D' Rating
MOSCOW INTEGRATED: Fitch Changes Rating Outlook to Stable


S P A I N

GAT FTGENCAT: Fitch Downgrades Rating on Series E Tranche to 'C'
TDA 26: Fitch Affirms Rating on Class 2-C Notes at 'CCC'


U N I T E D   K I N G D O M

ALPHA TO OMEGA: In Administration; Benedict MacKenzie Appointed
CLAVIS SECURITIES: S&P Affirms Low-B Ratings on Class B2a Notes
COVE (SW): Orchestra Group Acquires Business
CRYSTAL PALACE: Enters Administration; Sale of Players Likely
ITRAXX SERIES: Fitch Withdraws Ratings on Credit-Linked Notes

ROYAL BANK: Faysal Bank Mulls Bid for Pakistan Unit
SPIRIT ISSUER: S&P Cuts Ratings on Five Classes of Notes to 'BB+'
TOREX RETAIL: SFO Charges Two Men with Conspiracy to Defraud

* UK: Retail Administrations Down 11% in 2009, Deloitte Says
* UK: R3 Sees Post-Recession Spike of Corporate Insolvencies


X X X X X X X X

* Fitch Takes Rating Actions on 20 EMEA Preferred Securities
* EUROPE: Market Offers Opportunities for Distressed Investors
* LMA Launches Combined Par/Distressed Trading Documents
* David Wilton Joins Begbies Traynor as Partner in London
* MCR Launches New Debt Advisory Group; Smith, Hunt to Joint Team

* Upcoming Meetings, Conferences and Seminars




                         *********



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B E L G I U M
=============


GENERAL MOTORS: Belgian Unions File Suit Over Small SUV Project
---------------------------------------------------------------
John Reed at The Financial Times reports that unions representing
auto workers in Belgium on Tuesday filed a lawsuit against General
Motors Co. for breaching an agreement to build a small sports
utility vehicle at its Antwerp plant.

"The relocation of the agreed small SUV models is the only reason
for the intended closure of Antwerp," the FT quoted unions
representing Opel's employees, as saying on Tuesday.  "There is a
pending lawsuit on this matter filed by the unions of Antwerp."

The FT recalls GM said last week that it intended this year to
wind down the plant, which employs 2,606 people.  The FT notes
that while the plant's future has long been in doubt, GM had been
studying a proposal to bring production of a small SUV, which it
plans to make in South Korea, to Antwerp.

GM declined to comment on the lawsuit, but it rejected the claim
that it had breached the contract, describing the SUV project as a
"plan" rather than a commitment, the FT states.

"From our perspective it's very clear," Opel said, according to
the FT.  "We've always talked about a plan, and that's what's in
this contract."

GM is looking at cutting about 8,300 jobs from its European
workforce of 48,000 as part of a plan to return Opel to
profitability, the FT discloses.  The FT relates Nick Reilly, head
of GM Europe, on Tuesday said that the plan was ready to
implement, and that he expected discussions to be wrapped up in
the next two to three weeks.

                       About General Motors

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

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

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

                    About Motors Liquidation

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

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

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


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


REMY COINTREAU: S&P Gives Stable Outlook; Affirms 'BB-' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised its
outlook on French spirits manufacturer and distributor Remy
Cointreau S.A. to stable from negative.  Remy's 'BB-' long-term
corporate credit rating was affirmed.

"The outlook revision to stable reflects S&P's expectation that
stabilizing sales trends and resilient financial flexibility
should allow the company to maintain its current financial
profile," said Standard & Poor's credit analyst Michael Seewald.

The stable outlook reflects S&P's view that Remy's cash generation
capacity and liquidity should enable the company to maintain its
financial profile despite the still difficult market environment
and tightened covenants in the group's loan documentation.
Downward pressure on the ratings would arise if operating setbacks
lead to a sudden deterioration of group liquidity, or if Remy
fails to sustain a financial profile in line with the ratings due
to operating performance, acquisitions, or shareholder returns.
In particular, S&P could revise the ratings again if headroom
under financial covenants does not increase from the current level
of about 7%, or if continuing high dividend payouts prevent Remy
from further strengthening its financial metrics.  Under the
current ratings, S&P expects Remy to maintain adjusted FFO to net
debt of 15% and to reach adjusted net debt to EBITDA of about
3.5x.

S&P could revise the ratings or outlook upward if Remy manages to
improve its cash flows to levels sufficient to allow further
sustainable deleveraging.

The ratings on Remy Cointreau reflect its still high exposure to
the slowing U.S. spirits market and to U.S. dollar foreign
exchange risk.  The ratings also reflect a track record of high
dividend payments and the group's limited diversification compared
with leading peers, despite Remy's leading position in cognac, its
presence in other high-margin drink categories, and the
rebalancing of its sales toward Asian growth markets.


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


BAYERISCHE LANDESBANK: Gerd Hausler Appointed New Chief Executive
-----------------------------------------------------------------
James Wilson at The Financial Times reports that Bayerische
Landesbank has appointed Gerd Hausler as its new chief executive,
replacing Michael Kemmer.

Mr. Hausler has previously been chairman in London of Dresdner
Kleinwort and a managing director at Lazard, the FT discloses.

The FT says the appointment of an experienced capital markets
banker may suggest that the state of Bavaria, which owns 95% of
the bank, wants to speed up plans to sell it or merge it with
another Landesbank.

According to the FT, Georg Fahrenschon, Bavaria's finance minister
and the chairman of BayernLB's supervisory board, said Mr. Hausler
would "give the bank the necessary strategic impetus".

The FT recalls Mr. Kemmer, the chief executive since 2008,
resigned when Hypo Group Alpe Aldria, the Austrian bank owned by
BayernLB, was nationalized.

                              Probe

As reported by the Troubled Company Reporter-Europe on Jan. 15,
2010, Bloomberg News said Munich prosecutors expanded their probe
of BayernLB's acquisition of a majority stake in Hypo Alpe-Adria
in 2007.  Bloomberg disclosed the prosecutors' office on Jan. 13
said in an e-mailed statement the investigation now includes
"additional people" beyond former BayernLB Chief Executive Officer
Werner Schmidt and possible offenses other than breach of trust.
"No active or former supervisory board members of BayernLB are
currently subject of the probe," the statement said, according to
Bloomberg.

According to Bloomberg, Munich-based BayernLB wrote off its
investment in Hypo Alpe-Adria, resulting in a loss of EUR3.75
billion, on Dec. 14.  The Austrian government nationalized
Klagenfurt, Austria-based Hypo Alpe-Adria under a rescue agreement
announced the same day, Bloomberg noted.

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


KABEL DEUTSCHLAND: Private Equity Groups Eye EUR5-Bln Takeover Bid
------------------------------------------------------------------
Martin Arnold and Ben Fenton at The Financial Times report that
private equity groups, including CVC Capital Partners and Carlyle,
are lining up banks to finance a EUR5 billion bid for Kabel
Deutschland.

According to the FT, bankers are prepared to provide between
EUR3.5 billion and EUR4 billion of debt to finance a takeover bid
for Kabel Deutschland, owned by Providence Equity Partners.

The FT says Advent International and BC Partners are also working
on possible bids for Kabel Deutschland.

Providence has been preparing Kabel Deutschland for a EUR1 billion
initial public offering and appointed Morgan Stanley, UBS,
Deutsche Bank and JPMorgan as advisers, the FT relates.

The FT recalls Kabel Deutschland issued a bond in 2003, so
investors in high-yielding bonds are already familiar with the
company and could be expected to support a new buy-out.  If a deal
is completed, banks are counting on bond markets to refinance part
of the debt, the FT notes.

Kabel Deutschland, or KDG, -- http://www.kabeldeutschland.com/--
provides digital TV and radio, Internet, and telephone connections
via cable to more than a dozen of Germany's 16 states serving
about 15 million homes.  The company also offers mobile phone
service in conjunction with partner 02 (Germany).  It carries
about 33 networks in various cable, Internet, or phone only and
bundled packages, as well as pay-per-view offerings (under the
TV/Radio banner).  Cable access accounts for about three-quarters
of KDG's revenue.  Subsidiary TKS provides cable, Internet, and
phone access to NATO troops stationed in Germany. Investment firm
Providence Equity Partners owns KDG.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Jan. 19,
2010, Fitch Ratings said Kabel Deutschland's proposal to amend its
existing senior credit facilities is broadly credit neutral.  The
extension of a significant portion of its debt maturities would
reduce medium-term refinancing risk, but the positive impact of
such a move would be somewhat offset by other changes which
increase the probability of further acquisitions.

Fitch presently rates Kabel Deutschland Vertrieb und Service GmbH
& Co AG's Long-term Issuer Default Rating at 'BB-' with a Stable
Outlook.  The company's senior secured bank facilities are rated
'BB+', while the holding company Kabel Deutschland GmbH's senior
notes are rated 'BB-'.

KDG is proposing to extend the maturity of up to EUR1.3 billion of
its senior secured credit facility to March 2014.  This facility
accounts for EUR1.685 billion of KDG's bank borrowing in two
tranches of EUR1.15 billion and EUR535 million which mature in
March 2012 and March 2013 respectively.  If accepted by lenders,
the extension of a significant portion of KDG's debt maturity
would reduce the company's medium-term refinancing risk.  Together
with the company's improving operational and financial
performance, this would point to upward rating momentum.

However, according to Fitch, there is acquisition risk to
consider.  According to Fitch, other credit facility amendments
KDG is proposing point to a more tangible appetite for
acquisitions, in line with the company's publicly stated interest
in being an active consolidator of the German cable market.  The
amendments to the existing credit facilities would allow
acquisitions of up to EUR800 million in value.  Amongst other
changes, the ongoing covenant leverage test, following any major
acquisition of over EUR400 million in value, would widen by 0.50x
on the closing of such a transaction.  This is mitigated by the
fact that KDG is only permitted to close such a transaction if on
a 12-month look-forward basis at closing KDG's leverage remains
within 0.25x of the current covenant limit.


===========
G R E E C E
===========


* GREECE: Mulls Bond Sale in Asia to Plug Budget Deficit
--------------------------------------------------------
Alkman Granitsas and Costas Paris at The Wall Street Journal
report that Greece hopes to raise up to US$10 billion from Chinese
and other Asian investors to plug holes in the country's budget
deficit.

According to the Journal, Greek Finance Minister George
Papaconstantinou will lead a delegation next month to the U.S. and
Asia to market Greek debt valued at least US$1.5 billion to US$2
billion denominated in euros, dollars and possibly yen.

The WSJ notes Greek officials hope that the bond tour, which will
include stops in Beijing, Shanghai and Hong Kong, could bring in
five times that amount if Chinese investors are attracted to the
deal.

"There is a lot of liquidity in China. There are big funds in
China.  This is why China is going to be part of the road show,"
the WSJ quoted Mr. Papaconstantinou as saying, adding that if
Chinese investors are to get involved the bond size has to be
"significant . . . possibly US$5 billion to US$10 billion."

The WSJ relates a person familiar with the situation said Greece
is trying to place as much as EUR20 billion to EUR25 billion
overall with Chinese investors.

Greece, the WSJ says, is under pressure from the European Union
and ratings agencies to fix a 2009 budget deficit of 12.7% of
gross domestic product -- four times the EU's 3% ceiling.  The
government this year must raise some EUR54 billion to cover its
financing needs, including more than EUR20 billion of maturing
bonds that fall due in April and May, the WSJ discloses.

The WSJ recalls concerns that Greece might slip into default have
spilled over in recent weeks to other European markets, depressing
other government bond prices and even dragging on the euro in
currency markets.


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


EXISTA HF: Iceland, SFO Conduct House Raids in Bakkavor Sale Probe
------------------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that Iceland's
special prosecutor's office and the U.K. Serious Fraud Office
carried out house raids in eight locations in Iceland and four in
the U.K. as part of a probe into the dealings of Exista hf.

Bloomberg relates the prosecutor's office said in an e-mailed
statement on Tuesday the prosecutor is investigating four cases
related to Exista in Iceland and assisted the SFO in the
collection of information related to a separate investigation.

According to Bloomberg, Special Prosecutor Olafur Thor Hauksson
said in the statement the matters under investigation with
Icelandic authorities relate to Exista's sale of Bakkavor hf in
Autumn 2008.  Mr. Hauksson's office is also investigating the
company's decision to cancel personal guarantees of employees that
were given loans by the company to buy Exista shares, the transfer
of liabilities and shares into a company owned by one of Exista's
executives and the company's decision to increase its share
capital by ISK50 billion (US$391 million), Bloomberg notes.

Citing the Daily Telegraph, the Troubled Company Reporter-Europe
reported on Oct. 14, 2009, that, Deloitte was being investigated
in Iceland over its advisory role in the sale of a major stake in
Bakkavor, one of the U.K.'s biggest supermarket suppliers.  The
Daily Telegraph disclosed investigators were looking at whether
Bakkavor's founders, two London-based millionaire brothers Lydur
and Agust Gudmundsson, paid a fair price when they bought a 39%
stake at the height of the Icelandic bank crisis a year ago.
Creditors of the heavily-indebted Exista, including Icelandic,
British and German banks, were understood to think the price paid
for the profitable asset was too low, the Daily Telegraph said.

Headquartered in Reykjavik, Iceland, Exista hf --
http://www.exista.is/-- is engaged in the areas of insurance and
asset leasing.  It is a parent company within the Exista Group,
which provides financial and investment services through its
subsidiaries and associates.  It operates the Icelandic non-life
insurance company VIS, the life insurance company Lifis, the
financing company Lysing, and others.  Exista is also a
shareholder in Kaupthing Bank, Sampo Group, Bakkavor Group and
Iceland Telecom, and has other short-term and long-term
investments in a diversified portfolio.


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


BR BAR: Faces Winding-Up Petition From Gerard Harrahill
-------------------------------------------------------
Gerard Harrahill has filed a petition to wind up BR Bar & Bistro
Limited.  The petitioner's solicitor is Frances Cooke.

The winding-up petition will be heard on February 8, 2010.

The registered address of BR Bar & Bistro Limited is at:

         South Douglas Road
         Douglas Cork
         Ireland


DERON LIMITED: Creditors Meeting Set for February 5
---------------------------------------------------
A meeting of creditors of Deron Limited will take place at 11:00
a.m. on February 5, 2010 at:

         Abbey Court Hotel
         Nenagh
         Tipperary
         Ireland

The registered address of the company is at:

         Unit 6 Quin Road Business Park
         Ennis
         Co Clare
         Ireland


J&R HOTELS: Faces Winding-Up Petition From Gerard Harrahill
-----------------------------------------------------------
Gerard Harrahill has filed a petition to wind up J&R Hotels
Limited.  The petitioner's solicitor is Frances Cooke.

The winding-up petition will be heard on February 8, 2010.

The registered address of J&R Hotels Limited is at:

         88 West Avenue
         Parkgate
         Frankfield
         Cork
         Ireland


MADOFF SECURITIES: HSBC Must Disclose Details in Investor Case
--------------------------------------------------------------
Stephanie Bodoni and Heather Smith at Bloomberg News report that
Judge Frank Clarke on Tuesday ruled that HSBC Holdings Plc must
disclose how much control Bernard Madoff had over assets the bank
transferred from two Dublin funds to the confessed fraudster.

"It seems to me as much clarity as can be obtained should be
secured at this stage," Bloomberg quoted Judge Frank Clarke as
saying at the court in Dublin Tuesday.

According to Bloomberg, HSBC is facing about 50 investor
complaints in Ireland for allegedly failing in its duties as
custodian for Thema International Fund Plc and AA
(Alternative Advantage) Plc, two funds that suspended redemptions
after Mr. Madoff's fraud was uncovered.

Thema and AA asked HSBC to clarify whether Madoff acted as a
sub-custodian or in another function, such as a broker dealer,
Bloomberg discloses citing court documents.  Bloomberg says this
may help them determine ahead of a full trial whether to assert
that HSBC didn't perform the necessary due diligence they expected
of a custodian bank, or whether they should assert a different
failure of duty.

                About BLMIS and Madoff Securities

London-based Madoff Securities International Limited is a money
management business of Bernard L. Madoff in the United Kingdom.

Bernard L. Madoff Investment Securities LLC and Bernard L.
Madoff orchestrated the largest Ponzi scheme in history, with
losses topping US$50 billion.

On December 15, 2008, the Honorable Louis A. Stanton of the
U.S. District Court for the Southern District of New York granted
the application of the Securities Investor Protection Corporation
for a decree adjudicating that the customers of BLMIS are in need
of the protection afforded by the Securities Investor Protection
Act of 1970.  The District Court's Protective Order (i) appointed
Irving H. Picard, Esq., as trustee for the liquidation of BLMIS,
(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)
removed the SIPA Liquidation proceeding to the Bankruptcy Court
(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.).

On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893).  The case is before Hon. Burton Lifland.  The
petitioning creditors -- Blumenthal & Associates Florida General
Partnership, Martin Rappaport Charitable Remainder Unitrust,
Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert
$64 million in claims against Mr. Madoff based on the balances
contained in the last statements they got from BLMIS.

On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff
Securities International Limited in London under bankruptcy
protection pursuant to Chapter 15 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. 09-16751).  Roughly US$100 million to US$500
million in assets and more than US$1 billion in debts were listed
for Madoff Securities.

The Chapter 15 case was later transferred to Manhattan.  In June
2009, Judge Lifland approved the consolidation of the Madoff SIPA
proceedings and the bankruptcy case.

Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in
United States v. Madoff, No. 09-CR-213 (S.D.N.Y.).


MCCARTHYS BAR: Faces Winding-Up Petition From Gerard Harrahill
--------------------------------------------------------------
Gerard Harrahill has filed a petition to wind up McCarthys Bar &
Bistro Limited.  The petitioner's solicitor is Frances Cooke.

The winding-up petition will be heard on February 8, 2010.

The registered address of McCarthys Bar & Bistro Limited is at:

         The Tennis Village
         Bishopstown
         Cork
         Ireland


MCK ENGINEERING: Creditors Meeting Set for February 5
-----------------------------------------------------
A meeting of creditors of MCK Engineering Limited will take place
at 11:00 a.m. on February 5, 2010 at:

         Hope Castle
         Castleblayney
         Co Monaghan
         Ireland

The registered address of the company is at:

         Carrowhatta
         Scotstown
         Co Monaghan
         Ireland


SEANACHIE COTTAGES: Gerard Harrahill Files Winding-Up Petition
--------------------------------------------------------------
Gerard Harrahill has filed a petition to wind up Seanachie
Cottages Limited.  The petitioner's solicitor is Frances Cooke.

The winding-up petition will be heard on February 8, 2010.

The registered address of is at:

         30 Abbots Close
         Sea Park
         Dungarvan
         Co Waterford
         Ireland


SKY DEVELOPMENTS: Creditors Meeting Set for February 5
------------------------------------------------------
A meeting of creditors of Sky Developments Limited will take place
at 3:00 p.m. on February 5, 2010 at:

         The Harcourt Hotel
         60 Harcourt Street
         Dublin 2
         Ireland

The registered address of the company is at:

         3rd Floor Ravenhall
         Bray
         Co Wicklow
         Ireland


SWILLY CONCRETE: Creditors Meeting Set for February 4
-----------------------------------------------------
A meeting of creditors of Swilly Concrete Limited will take place
at 9:00 a.m. on February 4, 2010 at:

         Clanree Hotel
         Letterkenny
         Ireland

The registered address of the company is at:

         12 Ard Na Greine
         Buncrana
         Lifford
         Co Donegal
         Ireland


TITAN EUROPE: Fitch Cuts Ratings on Three Classes of Notes to 'CC'
------------------------------------------------------------------
Fitch Ratings has affirmed Titan Europe 2007-2 Limited's Class X
variable-rate notes at 'AAA' and downgraded all floating-rate
notes:

  -- EUR807.7m Class A1 (XS0302915060) downgraded to 'AA' from
     'AAA'; Outlook Negative

  -- EUR5,000 Class X (XS0303036445) affirmed at 'AAA'; Stable
     Outlook

  -- EUR227.9m Class A2 (XS0302916381) downgraded to 'A' from
     'AAA'; Outlook Negative

  -- EUR154.4m Class B (XS0302917272) downgraded to 'BB' from 'A';
     Outlook Negative

  -- EUR115.3m Class C (XS0302917512) downgraded to 'CCC' from
     'BBB'; Recovery Rating 'RR4' assigned

  -- EUR86.1m Class D (XS0302917868) downgraded to 'CCC' from
     'BB'; 'RR6' assigned

  -- EUR37.9m Class E (XS0302919138) downgraded to 'CC' from
     'CCC'; 'RR6' assigned

  -- EUR21.3m Class F (XS0302919641) downgraded to 'CC' from
     'CCC'; 'RR6' assigned

  -- EUR11.2m Class G (XS0302920730) downgraded to 'CC' from
     'CCC'; 'RR6' assigned

The downgrades reflect the ongoing declines across European
commercial property markets, especially for assets of secondary
and tertiary quality.  The four largest loans -- the MPC
portfolio, Project Christie, Urbis and Portier loans -- together
account for 80% of the current loan balance and are therefore the
main drivers of the rating actions.

The EUR431.1 million MPC Portfolio is secured by 93 secondary and
tertiary quality office properties located across the Netherlands.
The collateral suffers from a high vacancy rate (currently 21%,
compared to 17% at closing) and a low weighted-average (WA) lease
term of 2.8 years.  The borrower exercised the second of its three
one-year extension options in January 2010, moving the loan
maturity to January 2011.  Fitch expects that the borrower will
also utilize the final extension option next year, given the size
of the loan and its high leverage (the reported and Fitch whole
loan loan-to-value ratios stand at 122% and 174%, respectively).

The EUR260.3 million Urbis loan is currently secured by 63 office
and retail properties (85 at closing) located throughout Germany.
Similarly to the MPC loan, the loan has a low occupancy rate of
57% and a low WA lease term of 2.3 years.  The loan remains on the
servicer's watchlist due to an ongoing breach of the whole loan
debt service coverage ratio trigger, although the loan has not
been transferred to special servicing as debt service payments
continue to be made on a timely basis.  To date, EUR4.6 million of
surplus rent has been trapped.  The reported whole loan LTV is
77%, compared to a whole loan Fitch LTV of 118%.

The EUR162.8 million Portier loan is secured by a multi-family
portfolio located in Berlin.  Despite stable occupancy, income and
coverage trends since closing, the loan remains in special
servicing due to the insolvency of its borrower and parent, both
of which are part of the Level One Group.  The loan has been
accelerated and all proceeds released by the insolvency
administrator are being applied only to the EUR129.8 million
securitized A-note.  The most recent valuation, which was
completed in August 2009, suggests a market value decline of 24%
since closing, resulting in a whole loan LTV of 116%.

The EUR471.5 million Project Christie loan is secured by four
shopping centers located in the former East Germany.  Despite the
secondary locations of the properties, the overall portfolio has
benefited from high occupancy rates since closing (currently at
97%) and a long WA lease term of 9.7 years.  One of the three one-
year extension options has been exercised; Fitch expects the
second option to be exercised in April 2010, subject to additional
hedging being obtained and the absence of a loan default.  The
reported whole loan LTV is 92%, compared to a Fitch whole loan LTV
of 118%.


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


FIAT SPA: To Close Six Factories For Two Weeks Amid Poor Sales
--------------------------------------------------------------
Vincent Boland and Giulia Segreti at the Financial Times report
that Fiat SpA is to close all its production facilities in Italy
for two weeks from next month because of poor sales figures in
January.

According to the FT, the company will close its six production
facilities for the last week of February and the first week of
March, a move that will affect some 30,000 workers.

The FT relates Fiat posted a net loss of EUR848 million and a
trading profit of EUR1.1 billion in 2009 and said 2010 would be "a
year of transition and stabilization".

                         Termini Imerese

The Italian government is to hold talks with Fiat and union
leaders on Friday over plans to close the company's loss-making
Termini Imerese factory in Sicily and shift production to Poland.
The FT says unions are planning a strike on February 3 to protest
the closure.

                          About Fiat SpA

Headquartered in Turin, Italy, Fiat SpA (BIT:F) --
http://www.fiatgroup.com/-- is principally engaged in the design,
manufacture and sale of automobiles, trucks, wheel loaders,
excavators, telehandlers, tractors and combine harvesters.
Through its subsidiaries, Fiat operates mainly in five business
areas: Automobiles, including sectors led by Maserati SpA, Ferrari
SpA and Fiat Group Automobiles SpA, which design, produce and sell
cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional,
Abarth, Ferrari and Maserati brands; Agricultural and Construction
Equipment, which is led by Case New Holland Global NV; Trucks and
Commercial Vehicles, which is led by Iveco SpA; Components and
Production Systems, which includes the sectors led by Magneti
Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain
Technologies SpA, and Other Businesses, which includes the sectors
led by Fiat Services SpA, a publishing house Editrice La Stampa
SpA and an advertising agency Publikompass SpA.  With operations
in over 190 countries, the Group has 203 plants, 118 research
centers, 633 companies and more than 198,000 employees.

                           *     *     *

Fiat S.p.A. continues to carry a Ba1 long-term rating of Fiat
S.p.A. from Moody's Investors Service with negative outlook.


ITALFINANCE SECURITIZATION: Moody's Withdraws Ratings on Notes
--------------------------------------------------------------
Moody's Investors Service has withdrawn these ratings of the notes
issued by Italfinance Securitization Vehicle S.r.l., following the
full redemption of the notes at the payment date falling on the
January 21, 2010 under the optional redemption case.

  -- Baa2 on the EUR165.9 (initial balance) million Class A
     asset-backed floating rate notes due 2022, and

  -- Ba3 on the EUR18.6 (initial balance) million Class B asset-
     backed floating rate notes due 2022

The notes were issued in March 2006.  ITA J was the 14th
transaction originated by Banca Italease.  In this transaction
Banca Italease securitized the deferred price of the leasing
receivables that were securitized in the transactions ITA 4, ITA
5, ITA 6 and ITA 7.  Specifically, a portion of the excess spread
of ITA 4, ITA 5, ITA 6 and ITA 7, which was equivalent to the
deferred price due under the transactions listed above, was
securitized.


* ITALY: Banks Need to Further Boost Capital
-------------------------------------------
Lorenzo Totaro at Bloomberg News reports that a Bank of Italy
official said Italian banks need to further boost their capital
ratios in line with international rules as losses on bad loans
affect their earnings.

According to Bloomberg, the official said the recession worsened
credit quality while the liquidity of banks has improved.

Bloomberg notes the official said Italy's six biggest banks agreed
that while the worst of the global financial crisis is over,
recovery signs in production are still weak.

Bloomberg relates central bank Governor Mario Draghi on Tuesday
met with representatives of the banks in Rome.


* ITALY: Fitch Sees Moderate Corporate Bond Issuance This Year
--------------------------------------------------------------
Fitch Ratings says in a special report that it expects the volume
of Italian corporate bond issuance to moderate this year,
following record issuance in 2009, in anticipation of rising
interest rates and yields.

Last year saw a record volume of Italian bonds being issued at
EUR35.7 billion, up 134% on 2007's level and 34% on 2001, the
previous record year.  The number of issuers also increased to 15
from 10 in 2007, but was still below 2002 which saw 26 issuers.
The market remained concentrated, with 47.2% of volume represented
by the three largest repeat issuers: Telecom Italia Spa
('BBB'/Stable), Eni Spa ('AA-'/Stable), and Enel Spa ('A-
'/Stable).  Fitch has not used 2008 as a comparison as the global
financial turmoil caused volumes to fall to their lowest level
since 1998 with just EUR4.3bn issued by only five companies.

Italy has followed a similar trend to major continental European
markets, which showed a similar buoyant increase.  Issuances last
year almost doubled in France (EUR87.5 billion) and tripled in
Germany (EUR90 billion) on 2007 levels.  Volumes issued in the UK
increased by 18% and 0.9% on 2007 and 2008 respectively to
EUR68.8 billion equivalent in 2009, showing a much more stable
profile.

In Italy, investment-grade issuance reached EUR25 billion and
speculative-grade EUR10.4 billion, while un-rated issuance was
only 1.5% of the total.  Demand for investment-grade paper grew
steadily during the first two quarters of the year, while in H209
signs of economic recovery helped reignite issuance opportunities
for more cyclical sectors and non-investment-grade companies like
Wind Telecomunicazioni Spa (rated 'BB-'/Stable), Piaggio and Fiat
Spa ('BB+'/Negative).  Davide Campari Milano Spa, the global
beverage group, was the sole un-rated issuer of the year.

Credit spreads narrowed more aggressively from the end of the
second quarter when liquidity and refinancing risks receded for
defensive sector borrowers like Telecom Italia, Eni Spa, Atlantia
Spa (Senior Unsecured 'A-'), Finmeccanica Spa ('BBB+'/Stable) and
Terna Spa ('A'/Stable).

"The activity in the Italian bond market was initially interpreted
as a response to the decline of bank lending," said Francesca
Fraulo, Director in Fitch's Corporate team based in Milan.

According to the Bank of Italy as of November 2009, lending to
non-financial corporations fell by 0.1% yoy from an increase of 8%
a year ago.  Tighter credit policies led to a reduction of new
lending, renegotiation of existing lines at higher margins and
short-term loans being called in.

"However, as 2009 unfolded, the progressive fall of government
bonds yields and the expectation of prevailing low interest rates
contributed to exceptional demand, also from international
investors, for Italian corporate bonds.  Oversubscription rates
largely confirm the market appetite for almost every issue in the
second half of the year," added Ms. Fraulo.

Bonds were not only used as a traditional re-financing source, but
in many cases to free up more expensive revolving credit lines or
to secure funding of 2010 maturities at competitive rates.

Noticeable absences from the market are, once again, SMEs (small
and medium-sized enterprises) which are the backbone of the
Italian economy and also hardest hit by the recession.  These
companies, traditionally financed with bank debt, in 2009, in
addition to the economic downturn, have suffered a more restricted
access to bank lending and limited alternative funding sources.
With the domestic and global economic recovery remaining slow and
fragile, restored availability of bank lending will be crucial to
support companies' funding needs in 2010.


* TARANTO: Fitch Affirms Foreign, Local Currency Ratings at 'RD'
----------------------------------------------------------------
Fitch Ratings has affirmed the Italian City of Taranto's Long-term
foreign and local currency ratings as well as its Short-term
foreign currency rating at 'RD' (Restricted Default).  The rating
action affects approximately EUR280m of outstanding loans and
bonds.

The ratings reflect Taranto's ongoing "distressed exchange" with
Banca OPI -- now incorporated as Banca Innovazione, Infrastrutture
e Sviluppo -- over the bond of originally EUR250 million whose
interests have not been paid since 2007.  They also reflect the
fact that, after the resumption of 'normal' operations in spring
2007, Taranto remains current on loans with Cassa Depositi e
Prestiti totalling about EUR60 million at end-2009.

The resumption of debt servicing on the bond, or a consensual
rescheduling of the bond's amortization plan could be positive for
the ratings.  On the other hand, a definitive ruling, likely by
the Supreme Court, confirming the invalidity of the bond contract
would trigger a rating review.

Following an agreement at the beginning of 2007 with the
bondholder, BIIS, part of Intesa San Paolo ('AA-'/Stable), Taranto
had been paying the principal component of the bond instalments
due in the 2007-2009 period, before resuming full debt servicing
for about EUR20 million per annum from 2010.  The interest
component had been frozen to allow Taranto's budget to regain some
room for maneuver in the aftermath of the city's default at end-
2006.  However, the city suspended the principal repayment
scheduled for May and November 2009, after in spring 2009 a court
ruled that the bond contract was void as BIIS was aware of the
municipality's distressed finances when it agreed the funding in
2004, and that the bond had failed to reduce the city's financial
liabilities, which under Italian law is a condition for long-term
debt refinancing.

If the ruling is confirmed by the court of appeal and/or by the
Supreme Court, the bond would be reclassified as commercial
liabilities and likely be repaid with a haircut of about 50% under
the Commission of Liquidation.  Taranto would then need to
replenish the budget of the Commission of liquidation for about
EUR100 million, which would put the city's budget under more
pressure to generate operating surpluses or proceeds from assets
sales as debt resources would not be available.  Under the
regulatory framework, Italian local authorities cannot borrow to
finance commercial liabilities.  The court of appeal's verdict is
expected in May 2010 but it is likely that it will be escalated to
the Supreme Court, prolonging the current standstill.

The city's operations remain fragile with slow improvement in tax
and fee collection rates.  Although personnel costs have shrunk to
EUR45 million in 2009, from EUR55 million in 2006, the headcount
is likely to increase from the current 1,100 as the city seeks to
fill the posts left by senior staff in recent years.  The city has
a small fund balance surplus while transfers from the region and
the national governments are budgeted to fund investments for
about EUR20 million over 2010-2012.

Taranto has 200,000 inhabitants and is located in southern Italy.
It has GDP per capita 30% below the EU average and an unemployment
rate of about 12% in 2010.


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


* KAZAKHSTAN: Nazarbayev Wants Gov't to Limit Bank Profit Margins
-----------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that Kazakh President
Nursultan Nazarbayev told the government to limit the profit
margin of banks to avoid "excessive incomes" that helped trigger a
financial crisis.

Banks should "focus on banking" and divest their industrial,
construction and insurance assets, Bloomberg quoted Mr. Nazarbayev
as saying at a Cabinet meeting, in remarks published Tuesday in
the government's official newspaper, Kazakhstanskaya Pravda.
"They will be used to suck out resources again, including
overseas."

Bloomberg recalls four Kazakh lenders, including BTA Bank, the
second largest, defaulted last year after credit markets froze and
Kazakhstan's property bubble burst.  BTA, Alliance Bank, AO Astana
Finance and BTA's Temirbank are seeking to reorganize US$20
billion of debt amassed when the economy was booming, Bloomberg
notes.

According to Bloomberg, central bank chairman Grigori Marchenko
said on Jan. 13 banks should use more of their excess liquidity to
boost lending in the first quarter or face increased reserve
requirements.


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


BRUCKNER CDO: S&P Downgrades Rating on Class D-2 Notes to 'BB-'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Bruckner CDO I B.V.'s class A2-1, A2-2, B, C-1, C-2, D-1, and D-2
notes.  At the same time, S&P removed classes C-1, C-2, D-1, and
D-2 from CreditWatch negative and affirmed the rating on class A-
1.

The rating actions on the class A2-1, A2-2, B, C-1, C-2, D-1, and
D-2 notes follow S&P's assessment of the deterioration in the
underlying portfolio's credit quality and the proportion of assets
it contains that are on CreditWatch negative.  S&P also believes
there are risks arising from the fact that the portion of
collateralized debt obligation securities in the portfolio on
CreditWatch negative includes several tranches of the same issuer.

According to S&P's analysis, assets on CreditWatch negative
account for about 11% of the total portfolio.  About 10% of those
assets on CreditWatch negative are corporate CDOs.  In S&P's
analysis, in line with S&P's criteria regarding structured finance
assets on CreditWatch negative and held within CDO transactions,
S&P adjusted downward the ratings on these assets by at least
three notches.

In S&P's opinion, assets that fall in the 'CCC' rating category
now account for about 5% of the portfolio.  In addition, one asset
position is rated 'CC' (approximately 1.5% of the portfolio).  The
balance of assets rated 'CC' is included in S&P's analysis at the
lower of the market value of the asset and its recovery rate
assumption for that asset.

In S&P's view, these developments have led to a decline in the
transaction's class A/B, class C, and class D
overcollateralization test results.  According to the trustee's
latest available payment date report of December 2009, these tests
all breach their respective trigger levels.  According to the
transaction documents, these tests are calculated by dividing the
adjusted collateral balance by the principal amount outstanding of
the respective classes of notes for which the test is calculated.
According to the transaction documents, the outstanding balance of
assets rated 'CCC+' and below has to be included at the lower of
the current market value and the recovery rate assumption for that
asset.

As a result of the breach of the class A/B overcollateralization
test, S&P expects that the class C and D notes are likely to
continue to defer their interest payments, as available interest
proceeds are required pursuant to the transaction documents to be
applied to redeem the class A-1 notes, followed by classes A-2 and
B, until the class A/B overcollateralization test is back in
compliance.

In S&P's opinion, these factors indicate a worsening of the
transaction's risk profile.  In S&P's view, the credit enhancement
available to the class A2-1, A2-2, B, C-1, C-2, D-1, and D-2 notes
is no longer sufficient to maintain their ratings.  As such, S&P
has lowered the ratings on these notes to levels which, in S&P's
view, reflect the current likelihood of repayment of principal and
interest to noteholders.

S&P is affirming the rating on the class A-1 notes, as S&P
believes there is sufficient credit enhancement available at the
existing rating level.

Bruckner CDO I closed in September 2004.  It is a CDO of asset-
backed securities backed by a pool of largely European prime
residential mortgage-backed securities (30%), corporate CDOs
(24%), and ABS consumer assets (21%).

                           Ratings List

                        Bruckner CDO I B.V.
            EUR256.5 Million Secured Fixed-, Floating-,
                    and Deferrable-Rate Notes

                          Ratings Lowered

                                      Rating
                                      ------
             Class             To                From
             -----             --                ----
             A2-1              AA                AAA
             A2-2              AA                AAA
             B                 A-                AA

      Ratings Lowered and Removed From CreditWatch Negative

                                  Rating
                                  ------
         Class             To                From
         -----             --                ----
         C-1 (DEF)         BBB+              A/Watch Neg
         C-2 (DEF)         BBB+              A/Watch Neg
         D-1 (DEF)         BB-               BBB/Watch Neg
         D-2 (DEF)         BB-               BBB/Watch Neg

                          Rating Affirmed

                    Class             Rating
                    -----             ------
                    A-1               AAA


E-MAC NL: Moody's Withdraws Ratings on All Classes of Notes
-----------------------------------------------------------
Moody's Investors Service has withdrawn the ratings of all the
notes issued by E-MAC NL 2003-I B.V. following the full redemption
of all outstanding notes.

As described in Moody's press release dated 12th of January 2010,
the notes became due and payable as a result of the failure to
obtain confirmation of the ratings on or about the put option
date.  On January 12, Moody's downgraded the notes in
consideration of the increased likelihood that the transaction
would have moved into enforcement in case GMAC RFC Nederland B.V.
had not provided funds to redeem the notes, which would have
exposed them to the risk of market-based step-up interest margins
becoming unsubordinated in the priority of payments.

Detailed List of Rating Actions

E-MAC NL 2003-I B.V.

  -- Class A, rating withdrawn; previously on 12 January 2010
     downgraded from Aaa to Baa1;

  -- Class B, rating withdrawn; previously on 12 January 2010
     downgraded from A3 to Ca;

  -- Class C, rating withdrawn; previously on 12 January 2010
     downgraded from Ba1 to C;

  -- Class D, rating withdrawn; previously on 12 January 2010
     downgraded from B1 to C.


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


BANCA INTESA: Moody's Affirms 'D-' Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has affirmed the global scale ratings of
Banca Intesa -- a subsidiary of Intesa Sanpaolo Group.  These
ratings were affirmed: bank financial strength rating of D- and
long-term and short-term local and foreign currency deposit
ratings of Baa3/Prime-3.  Concurrently, Moody's Interfax Rating
Agency affirmed post-merger Banca Intesa's Aaa.ru long-term
national scale rating.  Moscow-based Moody's Interfax is majority-
owned by Moody's, a leading global rating agency.  The rating
agency maintains negative outlook on post-merger Banca Intesa's
BFSR and long-term deposit ratings, the national scale rating
carries no specific outlook.

The rating action was triggered by post-merger Banca Intesa's
recent announcement of the completion -- on January 11, 2010 -- of
the merger with its sister bank -- ZAO Banca Intesa (the latter
was not rated by Moody's prior to the merger and was fully
controlled by Intesa Sanpaolo Group).  The merger was followed by
the renaming of the former KMB Bank to Banca Intesa.  The merged
entity is controlled by Intesa Sanpaolo Group (86.75%) the
remainder being owned by the European Bank for Reconstruction and
Development (EBRD, had owned 25% plus one share in KMB Bank prior
to the merger).

Moody's explains that the affirmation of post-merger Banca
Intesa's ratings is underpinned by the rating agency's opinion
that the major credit characteristics of the merged entity were
largely aligned and remained unchanged in the aftermath of the
transaction, while some of them even improved.  As subsidiaries of
the same foreign financial institution (KMB Bank also having a
highly reputable development bank -- EBRD -- as its minority
shareholder), neither bank had any major corporate governance
issues, and both maintained healthy credit underwriting standards.

Total assets of the then ZAO Banca Intesa represented almost 20%
of total assets of KMB Bank; however, the former's loan book --
representing the majority of risk-bearing assets -- did not exceed
10% of KMB Bank's loan portfolio, the remainder mainly comprising
cash and cash equivalents.  ZAO Banca Intesa was primarily
involved in lending to large corporates, while KMB Bank was a
visible player in SME lending.  As a result, the merged bank's
franchise expanded, while the single-name loan concentration
remained at a very favourable level compared to the majority of
Russian-based peers.

In accordance with the management's accounts, at the date of the
merger, the then ZAO Banca Intesa did not have any delinquent
loans.  Loans to the SME sector accumulated on KMB Bank's balance
sheet continue to show a weakening trend; however, the pace of the
deterioration had slowed down in H2 2009 and remains within the
common pattern exhibited by Russian banks.  Furthermore, the good
diversification of the loan book and modest market risk appetite
outside of the bank's core lending activities protect the bank's
capital reasonably well from any sharp decline as a result of
defaults of certain large borrowers or sizeable negative market
developments.

"The thick capital cushion of ZAO Banca Intesa (its shareholders'
equity accounted for almost 40% of total assets prior to the
merger) contributed to the overall improvement of the merged
entity's capitalization level, as previously Moody's witnessed
some weakness in respect of KMB Bank's capital," said Olga
Ulyanova, a Moscow-based Moody's Assistant Vice President -
Analyst, and lead analyst for Banca Intesa.  "We expect the
regulatory capital adequacy of the merged entity to stand at a
comfortable level, well exceeding the minimum 10% requirement,
with the Basel I Tier 1 and CAR ratios improving concurrently",
Ms. Ulyanova added.

That said, the rating agency points out that the bank's capital
cushion is not in surplus, because the deterioration of the bank's
loan book is likely to extend into 2010, and additional provision
charges are very likely to occur, thus eroding the capital levels.
Among other constraining factors Moody's notes that the post-
merger Banca Intesa continues to demonstrate lack of funding base
diversification, as was the case for KMB Bank previously.  The
merged institution heavily relies on wholesale funding provided by
its controlling parent -- Intesa Sanpaolo Group -- although, to
date, this represents a relatively stable and committed source of
funding.

Banca Intesa's Baa3/Prime-3 global local currency deposit ratings
incorporate a high degree of support from its majority shareholder
-- Intesa Sanpaolo (rated Aa2/P-1/B-), which results in a three-
notch rating uplift from Banca Intesa's Ba3 Baseline Credit
Assessment.  The rating agency notes that any evidence of a
reduction in Intesa Sanpaolo's commitment to support the merged
entity will likely negatively impact the subsidiary's deposit
ratings.

Moody's maintains a negative outlook on Banca Intesa's BFSR which
reflects the rating agency's concerns about the sustainability of
the bank's financial fundamentals in the hostile economic
conditions in Russia.  The negative outlook on Banca Intesa's
deposit ratings reflects the negative outlook on its BFSR; hence,
a downgrade of the bank's BFSR will lead to the downgrade of its
deposit ratings.

Moody's most recent rating action on KMB Bank was taken on
December 17, 2008 when the rating agency assigned ratings of D-
/Baa3/Prime-3/Aaa.ru, with negative outlook on all of the global
scale ratings.

Headquartered in Moscow, Russia, KMB Bank (renamed to Banca Intesa
after the merger with its sister bank) reported IFRS total assets
of US$1.929 billion and total shareholders' equity of
US$249 million at June 30, 2009 (FYE2008: US$2.406 billion and
US$246 million, respectively).  The bank's net IFRS loss for the
six months ended June 30, 2009 was US$39 million (six months ended
June 2008: US$10 million).


BANK OF MOSCOW: Fitch Gives Stable Outlook; Affirms 'D' Rating
--------------------------------------------------------------
Fitch Ratings has revised Bank of Moscow's rating Outlook to
Stable from Negative while affirming the bank's ratings, including
its Long-term foreign currency Issuer Default Rating at 'BBB-'.

The Outlook revision on BOM's Long-term foreign currency IDR
follows the January 25, 2010 revision of the City of Moscow's
Outlook to Stable form Negative.  The change in the city's Outlook
in turn follows the revision of Russia's sovereign's rating
Outlook to Stable from Negative on January 22, 2010.

BOM's Long-term IDR depends on the city's propensity to support
the bank, given that Moscow owns 48% of BOM directly and controls
a further 15% through Stolichnaya Insurance Group, as well as the
city's own financial position.  Any major changes in the
relationship between the city and the bank, for example, as a
result of the potential change in the city's mayor at end-2011,
could also impact BOM's ratings.

The rating actions are:

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

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

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

* Support Rating: affirmed at '2'

* Individual Rating: affirmed at 'D'


MOSCOW INTEGRATED: Fitch Changes Rating Outlook to Stable
---------------------------------------------------------
Fitch Ratings has revised the Outlooks on OJSC Moscow Integrated
Power Company's Long-term foreign currency Issuer Default Rating
and National Long-term Rating to Stable from Negative.  Fitch has
simultaneously affirmed the company's ratings.

The rating actions are:

* Long-term foreign currency IDR: affirmed at 'BB+'; Outlook
  revised to Stable from Negative

* Short-term foreign currency IDR: affirmed at 'B'

* National Long-term Rating: affirmed at 'AA(rus)'; Outlook
  revised to Stable from Negative

* National Short-term Rating: affirmed at 'F1+(rus)'

The National Long-term rating Outlook of the City of Moscow is
Stable, and not revised to Stable from Negative as previously
stated.

MIPC is a heat generator and distributor in the Moscow region with
a small power generation segment.  It is 89%-owned by the City of
Moscow.  The company operates independently of the city,
collecting payment directly from customers through regulated
tariffs.  However, MIPC's ratings are notched two levels below the
city's ratings and linked to the city's ratings due to extensive
support in several key areas, such as the company's investment
program.


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


GAT FTGENCAT: Fitch Downgrades Rating on Series E Tranche to 'C'
----------------------------------------------------------------
Fitch Ratings has affirmed all four tranches of GAT FTGENCAT 2005,
Fondo de Titulizacion de Activos and has taken various rating
actions on GAT FTGENCAT 2006, Fondo de Titulizacion de Activos.
The rating actions resolved the Rating Watch Negative placed on
the transactions in August 2009 pending the full analysis
following the release of Fitch's revised criteria for rating
European granular pools of small corporate loans.  The rating
actions taken are:

GAT FTGENCAT 2005 F.T.A.:

  -- EUR139,151,426 Series A2(G) (ISIN ES0341096016) affirmed at
     'AAA'; assigned Stable Outlook and Loss Severity Rating 'LS-
     1'

  -- EUR9,008,745 Series B (ISIN ES0341096024) affirmed at 'AA';
     assigned Stable Outlook and Loss Severity Rating 'LS-3'

  -- EUR15,357,766 Series C (ISIN ES0341096032) affirmed at 'A';
     assigned Stable Outlook and Loss Severity Rating 'LS-3'

  -- EUR24,500,000 Series D (ISIN ES0341096040) affirmed at
     'BBB+'; off RWN; assigned Negative Outlook and Loss Severity
     Rating 'LS-2'

GAT FTGENCAT 2006 F.T.A.:

  -- EUR157,319,168 Series A2(G) (ISIN ES0341097014) affirmed at
     'AAA'; off RWN; assigned Negative Outlook and Loss Severity
     Rating 'LS-1'

  -- EUR5,100,000 Series B (ISIN ES0341097022) affirmed at 'AA+';
     off RWN; assigned Negative Outlook and Loss Severity Rating
     'LS-4'

  -- EUR12,300,000 Series C (ISIN ES0341097030) downgraded to
     'BBB-' from 'A'; off from RWN; assigned Negative Outlook and
     Loss Severity Rating 'LS-3'

  -- EUR13,200,000 Series D (ISIN ES0341097048) downgraded to
     'CCC' from 'B'; off RWN

  -- EUR9,500,000 Series E (ISIN ES0341097055) downgraded to 'C'
     from 'CC'; off RWN

The affirmations of GAT 2005 reflect the significant de-leveraging
which offset some deterioration in the portfolio.  The higher
credit enhancement levels of these classes provide sufficient
credit support to withstand the revised assumptions in the SME CDO
rating criteria at their respective ratings.  The negative outlook
assigned to series D reflects the limited credit enhancement
surplus given the deteriorating performance and concentration in
both Catalunya at 77% and the real estate-related industry at 35%.

GAT 2005's portfolio has amortized to EUR181m as of November 2009,
representing 26% of the initial balance.  Series A1 has been paid
in full and series A2(G) has amortized to 29% of its initial
balance.  However, total defaults more than doubled in a year to
0.8% of the initial pool balance as of November 2009.  In
addition, 90+ days delinquencies increased to 3.47% of the
outstanding pool balance from 1.45% during the same period.
However, relative to other Fitch rated SMEs, there is no major
obligor concentration risk in the portfolio the top obligor
represents 1.3% of the current balance.  Approximately, three-
quarters of the portfolio is backed by first-lien real estate with
a generally low weighted average LTV.

The downgrades of the series C to E of GAT 2006 are the result of
the implementation of Fitch's revised SME CDO rating criteria,
coupled with increasing arrears levels and defaults amid difficult
economic conditions and the reduction of the reserve fund to below
the minimum required level.  However, the senior notes, series
A2(G) and B, have benefited from the de-leveraging of the
transaction.  The negative outlooks assigned to series A2(G) to C
reflect the limited credit enhancement surplus at respective
rating stress, deteriorating performance and concentration in both
Catalunya at 74% and the real estate-related industry at 31%.

GAT 2006 shows weaker performance than GAT 2005.  As of the 30
November 2009 investor report, the reserve fund has been reduced
to half of its initial balance and is well below the minimum
required level.  Defaulted loans (defined as over 12 months
delinquent) represented 2.1% of the initial portfolio balance.  In
addition, 90+ days delinquency increased to 3.86% from 3.18% in
November 2008 of the outstanding pool balance.

The portfolio balance has amortized to 40% of its initial balance
and series A1 having been paid in full.  Similar to GAT 2005, the
portfolio does not have significant obligor concentration risk.
The top obligor represented 1.3% of the outstanding balance.
Approximately two-third of the pool was secured by first lien
real-estate with a moderate weighted average LTV ratio.

Both series A2(G) of GAT 2005 and 2006 benefit from a guarantee by
the Autonomous Community of Catalonia ('A+'/Negative/'F1').
However, the ratings of both series A2(G) are not based on the
guarantee but based on the notes' stand alone credit enhancement.

In both transactions Caixa Catalunya performs the role of servicer
and swap counterparty.  In July 2009 Fitch withdrew its ratings of
the savings bank affirming the Long-term IDR at 'BBB+', Short-term
IDR at 'F2', Individual Rating at 'C', Support Rating at '3' and
Support Rating Floor at 'BB+'.

Caixa Catalunya is transferring the funds received from the
portfolio to the account at Banco de Sabadell (rated A+ Outlook
Negative/F1) on a daily basis.  In its analysis Fitch examined the
commingling risk associated with Caixa Catalunya acting as
servicer for both transactions and viewed it as minimal.

Caixa Catalunya is currently posting collateral to Confederacion
de Cajas de Ahorros (AA- Outlook Negative / F1+) to cover the swap
value due to the breach of the rating trigger at 'F1'.  However,
as the swap counterparty is no longer rated by Fitch each
transaction was analyzed assuming termination of the swap
agreement.  Given the large margin between the assets and the cost
of the transactions' funding, both transactions were able to
withstand extreme interest rate stresses commensurate with the
note ratings.  Given this, in the event of swap termination, Fitch
is unlikely to take negative rating action.

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


TDA 26: Fitch Affirms Rating on Class 2-C Notes at 'CCC'
--------------------------------------------------------
Fitch Ratings has affirmed all of TDA 19 and 26 Mixto Fondo de
Titulizacion de Activos' RMBS notes.

The rating affirmation of TDA 19 Mixto and TDA 26 Mixto reflects
the relatively stable performance of both transactions to date,
with low and stable arrears and defaults, despite Spain's
difficult economic environment.

TDA 19 Mixto was issued in 2004 and is backed by mortgage loans
originated and serviced by Cajamar and Caixa Tarragona.  The
transaction has benefited from significant seasoning and de-
leveraging since issuance.  Over the last year the transaction has
had low and stable arrears and defaults.  Cumulative defaults in
the transaction are equal to 0.62% of the original balance and
arrears greater than 90 days were equal to 0.46% of the current
balance.  The defaults and arrears to date are well within the
rating stresses applied by Fitch.  Prepayment rates have decreased
significantly over the last three years, however, there has not
been any significant performance deterioration, and so this not
resulted in any additional stress that would warrant a change to
the ratings.  Despite the transaction's good performance, the
Outlooks for the class C and D notes have been revised to Stable
from Positive due to the challenging macroeconomic environment in
Spain, which could result in a sudden change in borrower
behaviour.  The change in Outlook reflects the low likelihood of a
positive rating action, but does not imply that Fitch expects any
negative rating migration.

TDA 26 Mixto was issued in 2006 and is backed by mortgages loans
originated and serviced by Banca March and Banco Guipuzcoano.  TDA
26 has issued two groups of notes: Group 1 notes, comprising only
first-ranking mortgages with loan-to-value ratios under 80% and
Group 2 notes, backed by first and second-ranking mortgage loans
with LTVs above 80%.  To date the Group 1 pool has seen a higher
level of loans in arrears by more than three months, accounting
for 0.72% of the pool.  Surprisingly, given the portfolio
characteristics, Group 2 arrears are lower, accounting for 0.26%
of the pool.  Cumulative defaults in Group 1 are equal to 0.60% of
the original balance and there have been no defaults in Group 2 to
date.

The agency has seen the performance of other RMBS portfolios in
Spain similar to Group 2 deteriorate significantly over the last
two years and is therefore monitoring the performance of this pool
closely.

As with TDA 19 Mixto, prepayment rates for TDA 26 Mixto have
fallen, although they have been more stable in Group 1, which
Fitch believes is due to the relative availability of refinancing
opportunites for borrowers with lower LTV levels.  The Outlook for
class 1-C has been revised to Stable from Negative due to
significant de-leveraging and stable performance.

Fitch used its EMEA RMBS surveillance criteria, employing its
credit cover multiple methodologies, to assess the level of credit
support available to each class of notes with respect to the
transactions.

The rating actions are:

TDA 19:

  -- Class A (ISIN ES0377964004): affirmed at 'AAA'; Outlook
     Stable; assigned Loss Severity (LS) Rating of 'LS-1'

  -- Class B (ISIN ES0377964012): affirmed at 'AA+'; Outlook
     Positive; assigned 'LS-1'

  -- Class C (ISIN ES0377964020): affirmed at 'A+'; Outlook
     revised to Stable from Positive; assigned 'LS-3'

  -- Class D (ISIN ES0377964038): affirmed at 'BBB+'; Outlook
     revised to Stable from Positive; assigned 'LS-2'

TDA 26:

  -- Class 1-A2 (ISIN ES0377953015): affirmed at 'AAA'; Outlook
     Stable; assigned 'LS-1'

  -- Class 1-B (ISIN ES0377953023): affirmed at 'A'; Outlook
     Stable; assigned 'LS-2'

  -- Class 1-C (ISIN ES0377953031): affirmed at 'BBB'; Outlook
     revised to Stable from Negative; assigned 'LS-3'

  -- Class 1-D (ISIN ES0377953049): affirmed at 'CCC'; assigned
     Recovery Rating Rating 'RR1'

  -- Class 2-A (ISIN ES0377953056): affirmed at 'AAA'; Outlook
     Stable; assigned 'LS-1'

  -- Class 2-B (ISIN ES0377953064): affirmed at 'A-'; Outlook
     Stable; assigned 'LS-1'

  -- Class 2-C (ISIN ES0377953072): affirmed at 'CCC'; assigned
     Recovery Rating Rating 'RR1'


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


ALPHA TO OMEGA: In Administration; Benedict MacKenzie Appointed
---------------------------------------------------------------
Dominic Welling at FTAdviser reports that Alpha to Omega has been
placed into administration after the Financial Services Authority
restricted the Company's permissions to carry out certain
activities, including pension transfers and advising on a number
of funds.

The report relates Simon Underwood and Rupert Mullins from the
business rescue and insolvency firm Benedict MacKenzie have been
appointed as joint administrators of the company on Jan. 25.

"Obviously the sooner we sell the business into someone else's
capable hands the better, because it preserves the business and
all the other people involved in it -- the clients, advisers,
members and staff, etc.," the report quoted Mr. Mullins as saying.
"There seems to be a lot of interest from other networks so far,
which is good news."


CLAVIS SECURITIES: S&P Affirms Low-B Ratings on Class B2a Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
Clavis Securities PLC's series 2006-1 and 2007-1.

Both transactions are currently paying pro rata as the reserve
funds are at their required amounts and 90+ day delinquencies are
below the trigger level of 17%.  As per the December 2009 investor
report, this arrears metric is 9.1% for series 2006-1 and 10.7%
for series 2007-1.  In S&P's opinion, the performance of these
transactions is robust compared with similar vintage deals, in
terms of lower delinquencies and losses.

Clavis 2006-1 closed in June 2006 with a weighted-average
seasoning of more than 12 months.  Prepayments from Q2 2007 to Q2
2008 were above 50%, leading to significant deleveraging of the
structure and a current pool factor of 19%.  The transaction's
performance has allowed the reserve fund and liquidity facility to
amortize, which has limited rating upgrade potential.  Annualized
excess spread was 2.12% in December 2009.

Clavis 2007-1 closed in May 2007 with a weighted-average seasoning
of approximately 11 months.  Prepayments in 2008 were high but the
structure has deleveraged to a lesser extent, with a current pool
factor of 43%.  House price declines have raised indexed loan-to-
value ratios in the pool but, in S&P's opinion, this transaction
is slightly less exposed to this risk than other 2007 vintage
transactions, due to the higher seasoning at closing.  The reserve
fund cannot amortize, due to a breach of the nonreversible
cumulative foreclosures trigger that will increase credit
enhancement if excess spread continues to cover losses.
Annualized excess spread was 2.56% in December 2009.

Clavis Securities series 2006-1 and 2007-1 are U.K. nonconforming
residential mortgage-backed securities transactions.  The
collateral pools are first-ranking mortgages originated by GMAC
RFC Ltd. and secured over freehold and leasehold properties.

                           Ratings List

                         Ratings Affirmed

                Clavis Securities PLC Series 2006-1
     GBP371.35 Million and EUR333.25 Million Mortgage-Backed
                Floating-Rate Notes Series 2006-01

                        Class       Rating
                        -----       ------
                        A3a         AAA
                        A3b         AAA
                        M1a         AA+
                        M1b         AA+
                        M2a         A+
                        B1a         BBB+
                        B1b         BBB+
                        B2a         BB+

                Clavis Securities PLC Series 2007-1
       GBP338.9 Million and EUR314.6 Million Mortgage-Backed
                 Floating-Rate Notes Series 2007-01

                        Class       Rating
                        -----       ------
                        A3a         AAA
                        A3b         AAA
                        AZa         AAA
                        M1a         AA
                        M1b         AA
                        M2a         A
                        M2b         A
                        B1a         BBB
                        B1b         BBB
                        B2a         BB


COVE (SW): Orchestra Group Acquires Business
--------------------------------------------
Adam Hooker at Print Week reports that Cove (SW) has been bought
out of administration by Somerset printer Orchestra Group.

According to the report, all 12 staff members at the Clevedon-
based digital printer have been transferred as part of the deal,
although Cove will continue to operate as an independent company
from its new parent, Orchestra Group.

The report recalls Cove (SW) was placed into administration on
December 30.  The company's assets were sold on the same day.
Begbies Traynor serves as administrator.

Orchestra Group, which has sites in Wooton-under-Edge and Bristol,
has a turnover of GBP20 million and employs around 250 staff, the
report discloses.  Its services include security printing, laser
printing and specialist enclosing, the report notes.


CRYSTAL PALACE: Enters Administration; Sale of Players Likely
-------------------------------------------------------------
Nick Szczepanik at The Times reports that Crystal Palace has gone
into administration after running into financial problems.

According to the report, Crystal Palace has debts estimated at
GBP30 million.  The club has paid players late this season and was
due to face a hearing into a winding-up petition from Revenue &
Customs yesterday, the report says.

The report recalls Simon Jordan, the club's chairman, has been
attempting to attract new investment this season, but it was not
he who called in the administrators.  The report says the call was
made by Agilo Ltd., a Cayman Islands-registered company from whom
Jordan is believed to have borrowed GBP5 million.  Agilo feared
that the club would be wound up at yesterday's hearing and that it
would lose its investment, the report discloses.

Brendon Guilfoyle, Chris White and John Russell, of the P & A
Partnership, have been appointed administrators.  They will
attempt to find a buyer, the report relates.  There are understood
to be interested parties, but Mr. Guilfoyle made it plain that he
would sell players to raise money if possible, the report notes.

"I have options," the report quoted Mr. Guilfoyle as saying.  "My
priority is to make sure we have sufficient funding to complete
the club's fixtures and one technique will be the sale of assets.
I have not yet had the opportunity to speak to the manager.  They
have an away game [against Newcastle United this evening] and he
was on a plane when I arrived."

The sale of "assets" will have to be rapid, with the transfer
window due to close next Monday, the report states.

The Football League is still "awaiting formal confirmation" of
administration before a ten-point penalty is implemented, the
report notes.

London-based Crystal Palace Football Club --
http://www.cpfc.premiumtv.co.uk/-- plays in the English League.
The team, also known as the "Eagles" represents a borough of
London called Croydon.  It was founded in 1905 by workers at the
Crystal Palace, a wrought iron and glass building originally
erected in the Hyde Park area of London to house the Great
Exhibition of 1851 (the first in a series of World's Fair
exhibitions).  The Crystal Palace Football Club moved to its
current stadium Selhurt Park in 1924.  Chairman Simon Jordan took
over the club in 2000, ending Crystal Palace's stint with
bankruptcy.


ITRAXX SERIES: Fitch Withdraws Ratings on Credit-Linked Notes
-------------------------------------------------------------
Fitch Ratings has withdrawn five weighted-average ratings relating
to the credit-linked notes of the iTraxx series.  These notes'
ratings have been withdrawn:

* iTraxx Crossover Series 3 Note: 'B+'
* iTraxx Crossover Series 4 Note: 'B+'
* iTraxx Crossover Series 5 Note: 'B+'
* iTraxx Europe Series 3: 'BBB'
* iTraxx HiVol Series 3: 'BBB-'

The ratings solely indicated the weighted-average credit rating of
entities comprising the reference portfolios.  As stated in the
original rating action commentary, these ratings did not address
other risks, such as collateral risk and counterparty risk, which
are addressed by Long-term credit ratings.  The agency will no
longer provide rating or analytical coverage of the notes.

Under the weighted average rating methodology, the ratings were
stable since closing.


ROYAL BANK: Faysal Bank Mulls Bid for Pakistan Unit
---------------------------------------------------
Khalid Qayum and Haris Anwar at Bloomberg News report that Faysal
Bank Ltd. plans to participate in the process to acquire a
majority stake in the Pakistan unit of Royal Bank of Scotland Plc.

"The board of directors has given its in-principle approval to
evaluate information that will be provided by RBS in relation to
the sale and participate in the sale process," Bloomberg quoted
Pakistan-based Faysal Bank as saying in a statement to the stock
exchange.

Citing the Financial Times, the Troubled Company Reporter-Europe
on Jan. 6, 2010, that a deal to sell RBS's Pakistani unit to MCB
Bank failed.  The FT recalled RBS announced in August that it was
selling a 99.4% stake in the unit to MCB, a Pakistani rival, for
PKR7.2 billion (GBP53 million).  The FT disclosed in a brief stock
exchange statement on Jan. 4 RBS said that the deal had lapsed
because it had not received the necessary regulatory approval by
the end of 2009.  According to the FT, Pakistan's central bank in
Karachi said it had refused to clear the deal because of a dispute
over MCB depositing its shares as security.

                            About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 22,
2009, Fitch Ratings upgraded The Royal Bank of Scotland Group's
(RBS Group) and The Royal Bank of Scotland's Individual Ratings to
'D/E' from 'E' and removed the Rating Watch Positive.  The upgrade
of the Individual Ratings reflects improvements in the group's
capital combined with some progress in restructuring the balance
sheet.


SPIRIT ISSUER: S&P Cuts Ratings on Five Classes of Notes to 'BB+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered all its rating to 'BB+'
from 'BBB-' on all classes of notes in the Spirit Issuer PLC
transaction following a weakening of the business risk profile and
discussions with management.

As business risk profile is a major factor in S&P's review of
credit risk and in determining its cash flow stresses, the
weakening of Spirit's business risk profile, although it remains
in the "fair" category, has led us to apply harsher stresses when
considering the overall ratings on the transaction.  S&P notes
that Spirit has the weakest business risk profile of all
transactions S&P rates.

In S&P's opinion, Spirit's business risk profile has weakened due
to the significant underperformance of the estate.  Specifically,
S&P notes the overall decline in EBITDA and the weakening EBITDA
margin.

According to investor reports in financial year 2009, Spirit's
managed EBITDA declined to GBP96.3 million from GBP125.1 million
in 2008 (a 23% decline), while tenanted EBITDA declined to
GBP51.3 million from GBP55.4 million (a 7.4% decline).  These
declines were significantly higher than S&P's expectation of a 10%
drop in managed estate and a 6% drop in tenanted estate, which S&P
expressed in its transaction update on May 1, 2009.

In S&P's opinion, the tenanted estate would have recorded a
significantly higher EBITDA decline if Spirit had not acquired
additional pubs from Punch Taverns Finance PLC during Q1 2009.
The overall EBITDA decline in the transaction was 18.2% in 2009.
While a significant proportion of the EBITDA decline came from the
disposal of pubs (according to S&P's calculations, managed
business disposed 59 pubs and tenanted business disposed 104 pubs
and acquired 83 pubs), S&P also note that EBITDA per pub for
Spirit fell significantly in 2009.

In its interim management statement for Q1 2010, Punch Taverns PLC
saw no improvement in tenanted performance, with like-for-like
profits showing a similar rate of decline as in 2009.  Punch
Taverns has also announced an increase in tenant support to
GBP2 million per year from GBP1.6 million per year.  Sales in
managed pubs continued to be negative in Q1, with like-for-like
sales down 1.6% when most rated peers are reporting like-for-like
sales growth.  Therefore S&P is likely to see a third consecutive
year of declining EBITDA, as S&P view the performance of Punch
Taverns to be materially in-line with Spirit's.

Spirit's profitability performance has also been weak.  Its
managed business saw its EBITDA margin decline to about 15.9% in
2009 from 19.3% in 2008.  Spirit's managed business had the
weakest profitability in the rated peer group in 2009.  Tenanted
business EBITDA margin also declined, although by less than the
managed margin, to about 49.8% in 2009 from 51.7% in 2008.  The
overall EBITDA margin fell to 20.8% in 2009 from 23.9% in 2008.

Although the company has been actively buying back its bonds over
the past nine months, the debt reduction has not been enough to
compensate for the loss of cash flows and the increased stresses
due to the weakening business risk profile.  In total, Spirit
repaid GBP253.8 million of debt between September 2008 and
September 2009.

                           Ratings List

                        Spirit Issuer PLC

                    GBP1.25 Billion Fixed- And
            Floating-Rate Asset-Backed Debenture Bonds

                            Rating
                            ------
         Class   To                     From
         -----   --                     ----
         A1      BB+, BB+ (SPUR)        BBB-, BBB- (SPUR)
         A2      BB+                    BBB-
         A3      BB+, BB+ (SPUR)        BBB-, BBB- (SPUR)
         A4      BB+                    BBB-
         A5      BB+, BB+ (SPUR)        BBB-, BBB- (SPUR)

           SPUR -- Standard & Poor's underlying rating.


TOREX RETAIL: SFO Charges Two Men with Conspiracy to Defraud
------------------------------------------------------------
Philip Stafford at The Financial Times reports that the Serious
Fraud Office has charged two men with conspiracy to defraud, false
accounting and misleading an auditor in connection with the
collapse at Torex Retail.

According to the FT, the SFO has charged Ed Dayan, 57, and Chris
Ford, 46, formerly the chief executive and finance director
respectively of XN Checkout, a subsidiary of Torex, on the third
anniversary of a profit warning by Torex that brought to light
financial problems at the retail software provider.

The FT recalls the warning, and suspension of the shares, exposed
bitter divisions on Torex Retail's board, most particularly
between Neil Mitchell, the chief executive who had been at the
company only five months, and Chris Moore, the chairman, who had
overseen Torex's growth.  The SFO's investigation was prompted by
Mr. Mitchell's delivery of a dossier alleging fraud, including the
2005 deal for XN, to the regulator, the FT recounts.

The alleged offenses took place between March and July 2006, the
FT discloses.  The period covered the group's interim results, the
first occasion that Torex's then new auditor, BDO Stoy Hayward,
had overseen the figures, the FT states.

The SFO said investigations into the wider collapse of Torex were
continuing, the FT notes.


* UK: Retail Administrations Down 11% in 2009, Deloitte Says
------------------------------------------------------------
As the economy emerges from the recession, retail administrations
dropped to their lowest figure since 2007, according to a research
by business advisory firm, Deloitte.  There were 290 retail
administrations in 2009, a drop of 11% compared with the 327 seen
in 2008, while up 4% on the 2007 low of 277.

Retail administrations steadily declined throughout 2009, with the
spike of Q408 and Q109 at 111 and 124 administrations
respectively, down by almost half in Q209 to 63, dropping further
in Q309 to 56, and yet again to 47 in Q409.  Quarter on quarter,
administrations were down 58% in Q409 from Q408.

Lee Manning, reorganization services partner at Deloitte
commented: "The steady decline in retail administration figures is
encouraging, particularly now as we begin to emerge from the
recession.  There are a number of factors which have been at play
here. Reported consumer spending has held up far better than
expected.  Equally, retailers have responded well to the
recessionary environment, and have better managed their cash flows
and stock levels.  This has been reflected in less aggressive
discounting strategies, which have in turn helped to maintain
profitability.  We are aware of several successful CVAs in the
sector, as well as a number of informal agreements by retail
landlords that have enabled the trading of more marginal high
street retailers to continue.  We continue to expect an increased
use of retail CVAs as a successful alternative to administration."

Key stats:

   Total retail administrations in:

   2007 = 277;
   2008 = 327;
   2009 = 290
   Q4 2008: 111 administrations
   Q1 2009: 124 administrations
   Q2 2009: 63 administrations
   Q3 2009: 56 administrations
   Q4 2009: 47 administrations


* UK: R3 Sees Post-Recession Spike of Corporate Insolvencies
------------------------------------------------------------
Jonathan Guthrie at The Financial Times reports that insolvency
body R3 has warned that company collapses will hit record levels
this year and stay high in 2011.

Peter Sargent, chairman of R3, as cited by the FT, said "The
country went into recession sharply but will come out of it
through a long, slow drag."

According to the FT, the central prediction of 1,700 insolvency
practitioners polled by R3 was that insolvencies would peak at
28,000 in 2010 compared with 22,800 in 2009.

The FT says researchers believed failures would ease off
moderately in 2011, totaling about 27,000.

The main reason for the post-recession spike is that creditors
will become more aggressive as growth resumes, the FT notes.

"The banks will tell debtors . . . it is time to perform or return
the money," the FT quoted Mr. Sargent as saying.

Petitioning for insolvency becomes more attractive to creditors in
an upturn because assets can fetch higher prices, the FT states.

The FT relates R3 said many businesses would fail because they
were too badly damaged.


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


* Fitch Takes Rating Actions on 20 EMEA Preferred Securities
------------------------------------------------------------
Fitch Ratings has taken rating actions on a total of 20 preferred
securities or hybrid capital instruments of non-financial
corporate issuers in the EMEA (Europe Middle East & Africa)
region.  These actions implement the recently published revised
criteria for rating preferred stock and hybrid securities.

Application of the new criteria typically resulted in downgrades
of one notch for many deferrable hybrid instruments that are
currently performing.  Performing hybrids with more material loss
absorption provisions, or with triggers for loss absorption that
are easily triggered, were subject to a two-notch downgrade.  The
new criteria also provide guidance on how Fitch will rate and
notch hybrids and preferred securities at different stages in the
"life cycle" of an instrument.

All of the affected 20 instruments are performing instruments, ie.
they are not deferring coupons.  The only hybrid instrument for a
European non-financial corporate issuer which is currently
deferring coupons is the EUR275 million hybrid instrument issued
by Pfleiderer AG; however, the rating of this instrument is
determined according to Fitch's bespoke Recovery Rating
methodology for issuers rated 'B+' and below as outlined in its
criteria report "Recovery Ratings and Notching for Non-financial
Corporate Issuers" (dated 24 November 2009) and is not subject to
the standardized notching methodology described in the Rating
Hybrid Securities criteria.

For the avoidance of doubt, the change in the rating and notching
guidelines for hybrids is separate from and does not imply any
change in Fitch's guidelines for equity credit for hybrid
securities (still governed by the criteria "Equity Credit for
Hybrids & other Capital Securities" dated 29 December 2009).

The rating actions taken are:

* Bayer AG's EUR1.3bn hybrid bond due July 2105: downgraded to
  'BBB' (two notches below the IDR) from 'BBB+';

* Casino Guichard-Perrachon SA's EUR600m perpetual deeply
  subordinated hybrid notes: downgraded to 'BB' (two notches below
  the IDR) from 'BB+';

* Compagnie Generale des Etablissements Michelin's EUR500m
  (nominal) subordinated hybrid notes due December 2033:
  downgraded to 'BB' (two notches below the IDR) from 'BB+';

* DONG Energy A/S's EUR1.1bn hybrid capital notes: downgraded to
  'BBB-' (two notches below the IDR) from 'BBB';

* Endesa S.A.'s EUR1.5bn hybrid preference shares: downgraded to
  'BBB' (a net two notches below the IDR) from 'A-';

* France Telecom's EUR5bn perpetual hybrid notes: downgraded to
  'BBB' (two notches below the IDR) from 'BBB+';

* Union Fenosa Financial Services USA, LLC's (ultimate parent Gas
  Natural SDG, S.A.) EUR500m guaranteed perpetual subordinated
  notes: downgraded to 'BBB' (a net two notches below the IDR)
  from 'A-'.

* Union Fenosa Preferentes S.A.'s (ultimate parent Gas Natural
  SDG, S.A.) EUR750m guaranteed perpetual subordinated notes:
  downgraded to 'BBB-' (three notches below the IDR) from 'BBB+'.

* Henkel AG & Co. KGaA's EUR1.3bn subordinated hybrid notes due
  November 2104: downgraded to 'BBB' (two notches below the IDR)
  from 'BBB+';

* Repsol International Capital Ltd's USD725m Series A hybrid
  preference shares: downgraded to 'BB+' (three notches below the
  IDR) from 'BBB'.

* Repsol International Capital Ltd's EUR1bn Series B hybrid
  preference shares: downgraded to 'BB+' (three notches below the
  IDR) from 'BBB'.

* Repsol International Capital Ltd's EUR2bn Series C hybrid
  preference shares: downgraded to 'BB+' (three notches below the
  IDR) from 'BBB'.

* Siemens AG's EUR900m subordinated hybrid notes due September
  2066: downgraded to 'A-' (two notches below the IDR) from 'A';

* Siemens AG's GBP750m subordinated hybrid notes due September
  2066: downgraded to 'A-' (two notches below the IDR) from 'A';

* Solvay Finance's (ultimate parent Solvay SA) EUR500m hybrid
  notes due June 2104: downgraded to 'BBB' (two notches below the
  IDR) from 'BBB+'; the rating remains on Rating Watch Negative;

* Suedzucker International Finance BV's EUR700m perpetual
  subordinated notes: downgraded to 'BB+' (two notches below the
  IDR) from 'BBB-';

* Telefonica Finance USA, LLC's (ultimate parent Telefonica SA)
  EUR2bn floating rate callable subordinated preference hybrid
  shares: downgraded to 'BBB-' (three notches below the IDR) from
  'BBB+';

* Vinci SA's EUR500m subordinated hybrid notes: downgraded to
  'BBB-' (two notches below the IDR) from 'BBB'.

In addition, the ratings of these hybrid instruments have already
been adjusted as part of the ongoing issuer-specific review
process in line with the revised criteria:

* Wolters Kluwer NV's EUR225m perpetual subordinated notes
  downgraded on 5 January 2010 to 'BBB-' (two notches below the
  IDR) from 'BBB';

* Vattenfall Treasury AB's EUR1bn perpetual hybrid notes
  downgraded on 25 January 2010 to 'A-' (a net one notch below the
  IDR) from 'A+'.

Of the 20 ratings in total, seven were deemed to have easily
activated mandatory deferral triggers which required wider
notching.  These were those instruments issued by Repsol
International Capital Ltd, Endesa S.A., Union Fenosa Financial
Services USA, LLC, Union Fenosa Preferentes S.A. and Telefonica
Finance USA LLC.  Three issuers benefited from narrower net
notching based on a generic sector uplift (above-average
anticipated recoveries) for debt instruments of these utilities --
these were Vattenfall Treasury AB, Endesa S.A. and Union Fenosa
Financial Services USA, LLC).


* EUROPE: Market Offers Opportunities for Distressed Investors
--------------------------------------------------------------
Debtwire; Cadwalader, Wickersham & Taft LLP; FTI Consulting Inc.;
and Rothschild on Jan. 26 published the European Distressed Debt
Market Outlook 2010.

According to the report, 2009 was a glum year for most as the full
effect of the global credit crisis kicked in.  Yet for distressed
debt investors, the market offered plenty of opportunities to
cherry pick amongst troubled over-leveraged businesses and
companies in distress.  Opinions gauged from respondents to this
year's European Distressed Debt survey indicate that although
there is light on the horizon, the challenge for distressed
investors will be to find value in a rapidly moving market where
surging debt prices and poor liquidity are both prevalent factors.


* LMA Launches Combined Par/Distressed Trading Documents
--------------------------------------------------------
The European secondary loan market has undergone significant
changes over the past two years particularly with reference to the
post-Lehman Brothers environment and a marked increase in price
volatility.  In light of the changes, the LMA initiated a project
seeking to minimize the documentation-related basis risk faced by
institutions; dealing with a lender/investor becoming insolvent;
and addressing documentation matters that commonly attracted
debate.

The decision was taken to combine the LMA par and distressed
trading documents, and create a standard set of documents with
only a few key variations reflecting the nature of the different
markets.  The new Standard LMA Terms and Conditions were formally
launched on January 25, 2010, along with all the related revised
documents.  Prior to then, the market was given access to the
draft revised documents over a two-month period to enable
participants to become familiar with them.

Clare Dawson, LMA Managing Director, said: "Given the widespread
concern about lenders or investors becoming insolvent post Lehmans
and the other market issues thrown up by the disturbance in the
financial markets, we consider this move to a combined set of
documents, incorporating termination on insolvency of a lender, to
be an important step in enhancing overall market liquidity, which
continues to be one of the LMA's prime goals.  The changes have
been well received by the market and we will, of course, monitor
their usage over the coming months."

The Loan Market Association was founded in December 1996 by seven
leading international banks in London.  Its aim was to encourage
liquidity and efficiency in both the primary and secondary loan
markets by promoting market depth and transparency, as well as by
developing standard forms of documentation and codes of market
practice.  Banks, law firms and other market practitioners/
participants are welcome to apply to join the LMA.

The Association was established in anticipation of changing market
conditions and of a perceived willingness on the part of the
banking community to bring greater clarity, efficiency and
liquidity to the relatively under-developed secondary market.


* David Wilton Joins Begbies Traynor as Partner in London
---------------------------------------------------------
Begbies Traynor, a business rescue, recovery and restructuring
specialist in the United Kingdom, has appointed David Wilton as a
partner to further strengthen its BTG Restructuring Division.  BTG
Restructuring helps restore, preserve and enhance the value of
businesses.

Prior to joining Begbies Traynor, Mr. Wilton was a restructuring
partner at PwC based in London and the Global Coordinator of its
Optimised Exit product.  Among the engagements which Mr. Wilton
led were the advisory work in relation to the restructuring of
Cape Plc and in respect of McNicholas Construction (Holdings) Ltd.
Mr. Wilton also led the team advising the Strategic Rail Authority
in respect of Connex South Eastern and was part of the team
advising the Sea Containers management in the restructuring of
that group.

Mr. Wilton has 34 years experience in restructuring and insolvency
work and before working in London he had worked in Cardiff,
Nairobi and Birmingham.

Mr. Wilton's role will include restructuring work in both the
private sector (focusing on automotive, construction, media and
travel) and the public sector (focusing on health and transport).
He will act as restructuring adviser to companies or their
financial stakeholders.

Mark Fry, regional managing partner in London & South East,
commented: "David joins the team of more than 20 professionals in
London with experience that includes banking, accounting,
corporate finance, strategic consulting and insolvency and
reconstruction.  Having David on board will further enhance our
capabilities and also builds on the recent appointment of Paul
Dounis in Scotland.  David's experience on company and financial
stakeholder work and extensive sector experience will help us
deliver the best results possible for our clients."

Recent work by BTG Restructuring in London includes Folio Hotels,
Titan Travel and Southampton Football Club.


* MCR Launches New Debt Advisory Group; Smith, Hunt to Joint Team
-----------------------------------------------------------------
Restructuring and insolvency group MCR has launched a new Debt
Advisory group designed to work in partnership with corporate
clients and their stakeholders as they identify effective and
appropriate funding solutions.

Paul Smith and John Hunt head the new group.  Prior to joining
MCR, Mr. Smith was responsible for Bank of Scotland Corporate
across Greater Manchester, Lancashire and Cheshire dealing with
corporate clients in the GBP5 million to GBP500 million space.

Mr. Hunt has over 20 years corporate finance experience gained in
the accountancy profession and also in industry.  He has wide
international experience having worked for several years in USA
and Scandinavia.

MCR Debt Advisory offers a bespoke service, initially investing
the time with clients to fully understand their aspirations and
funding requirements.  From individually tailored strategy
proposals through to working on negotiating facilities and
agreeing terms and conditions with both current and prospective
funders, its director-led team remain fully involved through to
completion.

David Whitehouse, Partner, MCR, stated: "The team includes
seasoned corporate bankers and corporate financiers with
considerable experience in preparing and assessing bank credit
applications, giving our clients invaluable advantage when
securing a renegotiation of existing banking terms or the
presentation of a re financing proposal to prospective new
lenders."

MCR frequently become involved in situations where 'mediation' is
required, often where the relationship between funders and the
client has become strained.  In such situations our primary
objective is to get all parties comfortable and reach a mutually
agreeable way forward, avoiding potential unnecessary refinancing
and or due diligence costs.

The new team will not only work with corporate clients and their
stakeholders to deliver the most effective and appropriate funding
structures and solutions, but also with other MCR groups.  This
includes MCR Business Consulting, which will enable it to deliver
a complete corporate advisory offering to clients that are not in
need of restructuring or insolvency advice.

                            About MCR

MCR was formed in April 2001 to offer turnaround, restructuring
and insolvency services of outstanding quality to banks, lenders,
business owners and individuals in the mid-market sector.  It aims
to provide the most practicable ways to resolve issues affecting
business performance.

The firm has 12 partners who practice an ethos of high-level
involvement to ensure that each assignment capitalizes upon the
expertise and knowledge of the whole team.

MCR regularly handles significant projects across a range of
sectors and has been involved in a number of high profile cases.
MCR is increasingly being asked to restructure businesses and find
turnaround solutions to help companies avoid formal insolvency.
Sectors include property, retail, financial services,
manufacturing, printing, recruitment, hotels, leisure, automotive,
telecommunications, music, entertainment and construction.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

January 27-29, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    Distressed Investing Conference, Bellagio, Las Vegas
       Contact: http://www.turnaround.org/

Feb. 21-23, 2010
INSOL
    International Annual Regional Conference
       Madinat Jumeirah, Dubai, UAE
          Contact: 44-0-20-7929-6679 or http://www.insol.org/

April 20-22, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    Sheraton New York Hotel and Towers, New York, NY
       Contact: http://www.turnaround.org/

Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.
          Contact: http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

October 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
    Hilton San Diego Bayfront, San Diego, CA
       Contact: http://www.turnaround.org/

Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/


                            *********

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 2010.  All rights reserved.  ISSN 1529-2754.

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

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

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


                 * * * End of Transmission * * *