TCREUR_Public/100201.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Monday, February 1, 2010, Vol. 11, No. 021

                            Headlines



F I N L A N D

DYNEA INTERNATIONAL: Moody's Withdraws 'Caa1' Corp. Family Rating


F R A N C E

CMA CGM: Profitable at Operating Level, Wansquare Says
EUTELSAT COMMUNICATIONS: Moody's Ups Sub. Bank Debt Rating to Ba1
PEUGEOT CITROEN: Aims to Sell 100,000 Sedans in China Annually


I R E L A N D

BLACKSHORE HOLDINGS: Enters Into Interim Examinership


I T A L Y

GIANNI VERSACE: Inks Preliminary Agreement with Unions on Job Cuts

* ITALY: Can't Afford to Cut Taxes, Debt Nears 120% of GDP


K A Z A K H S T A N

ATF BANK: Moody's Cuts Junior Subordinated Debt Rating to 'B1'
BANK CENTERCREDIT: Moody's Cuts Jr. Subordinated Debt Rating to B3
KAZKOMMERTSBANK: Moody's Junks Junior Subordinated Debt Rating

* KAZAKHSTAN: Banks Can't Afford to Write Off Bad Loans, S&P Says


N E T H E R L A N D S

BEST SME: Moody's Assigns 'Ba1' Rating on EUR105 Mln Class E Notes
COPERNICUS EURO: Fitch Puts 'BB'-Rated Class D Notes on Watch Neg.
DUTCH MBS: Fitch Affirms Ratings on Class E Notes at 'BB'


R O M A N I A

* ROMANIA: IMF Team Recommends Unlocking Bailout Loan


R U S S I A

INDEPENDENT NEWS: Aeroflot Lebedev Stake Sale No Link to Purchase
ROSAVIA: Lebedev Stake May Be Used as Currency to Swap for Control
SAROVBUSINESSBANK: Fitch Affirms Individual Rating at 'D/E'
SEVERSTAL OAO: To Restart Production at Ohio Steel Mill
UC RUSAL: VEB May Extend Half of US$4.5 Bln Loan by One Year

* RUSSIA: DB Analyst Says Investors Lowball Banks' Difficulties


S E R B I A   &   M O N T E N E G R O

* MONTENEGRO: Moody's May Raise Credit Outlook to Stable


S W E D E N

FORD MOTOR: Geely to Run Volvo Separately to Protect Brand Image
ROYAL OPERA: May Be Declared Bankrupt, Managing Director Says


S W I T Z E R L A N D

OERLIKON CORP: Vekselberg Faces Fine Over Stake Acquisition


T U R K E Y

ARCELIK AS: Fitch Gives Positive Outlook; Affirms 'BB-' Ratings


U K R A I N E

* UKRAINE: Mulls Sale of Up to US$1 Bln Eurobonds Next Year
* UKRAINIAN CITY OF LVIY: S&P Downgrades Issuer Ratings to 'SD'


U N I T E D   K I N G D O M

CRYSTAL PALACE: Deducted 10 Points Following Administration
DIGITAL PAGE: High Court Orders Liquidation
FLAMELILY FLOWERS: High Court Orders Liquidation
FRANK GALLIERS: Goes Into Administration
GATHERING 2009: Goes Into Administration

J&G ENGINEERING: Appoints D.W.J. McClean as Liquidator
NORTHWEST ENVIRONMENTAL: High Court Orders Liquidation
RM CABLES: Appoints D.W.J. McClean as Liquidator
SHIV DISTRIBUTION: High Court Orders Liquidation
WINDYRIDGE INVESTMENTS: High Court Orders Liquidation

* UK: Acquisitions of Insolvent Businesses Remain High, R3 Says
* UK: At Mid-Point of W-shaped Recession, Phillips & Co Says
* UK: Outdated Fin'l Records Could Prolong Financial Instability


X X X X X X X X

* 20% of European Chemical Capacity at Risk by 2015, KPMG Says

* BOND PRICING: For the Week January 25 to January 29, 2010




                         *********



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F I N L A N D
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DYNEA INTERNATIONAL: Moody's Withdraws 'Caa1' Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn all outstanding ratings
for Dynea International Oy for business reasons and at the
company's request.

These ratings were withdrawn:

  -- Caa1 Corporate Family Rating
  -- Caa1 Probability of Default Rating

The last rating action was on December 15, 2009, when Dynea
International Oy's ratings were confirmed at Caa1 and the outlook
on the ratings was changed to negative.

Dynea International Oy is a diversified specialty chemicals group
headquartered in Helsinki, Finland.  The group produces industrial
and panelboard resins as well as interior and engineered wood
solutions for the construction, furniture, automotive and
machinery & equipment industry.  Dynea reported 2008 revenues of
EUR864 million and an EBITDA of EUR41 million.


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


CMA CGM: Profitable at Operating Level, Wansquare Says
------------------------------------------------------
Steve Rhinds at Bloomberg News, citing Wansquare, reports that CMA
CGM SA has been profitable at the operating level since October.

According to Bloomberg, Wansquare, citing an internal company
document, reported CMA had operating profit of US$4.8 million in
October, US$11 million in November, US$16 million in December and
probably US$21 million in January.

As reported by the Troubled Company Reporter-Europe on Dec. 28,
2009, Bloomberg News said CMA CGM bondholders approved changes to
the terms of their notes that would allow the company to raise
more debt and help it avoid bankruptcy.  Bloomberg disclosed
company spokeswoman Anne-France Malrieu said in a Dec. 22
telephone interview holders of US$570 million of senior bonds
agreed to change the terms of the debt, giving new lenders
priority for payment in a default.  According to Bloomberg, CMA
CGM had warned investors in its euro- and dollar-denominated bonds
due 2012 and 2013 that without their agreement, the company might
have to seek bankruptcy protection.  The company still needs court
approval to raise new financing that would be senior to existing
debt, Bloomberg said.  Citing a Dec. 16 notice to bondholders,
Bloomberg said CMA CGM was seeking to restructure US$5.6 billion
of borrowing and raise new money.

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


EUTELSAT COMMUNICATIONS: Moody's Ups Sub. Bank Debt Rating to Ba1
------------------------------------------------------------------
Moody's Investors Service assigned a long-term senior unsecured
issuer rating of Baa3 to Eutelsat SA (96% owned operating company
of Eutelsat Communications SA) and upgraded the rating for the
structurally subordinated bank debt at Eutelsat Communications SA
to Ba1 (from Ba2).  The outlook for all ratings is stable.  At the
same time the agency withdrew Eutelsat Communications SA's Ba1
Corporate Family Rating and the Ba1 Probability of Default Rating.

The ratings upgrade reflects Moody's expectation that Eutelsat
Communications group will (i) maintain momentum in its operating
performance, having shown resilience and continued strength
despite the weak macro-economic environment in 2009 (ii) continue
to invest in the replacement and growth of its satellite
infrastructure and importantly (iii) improve on current leverage
levels (the  June 30, 2009 DEBT/EBITDA ratio as measured by
Moody's was 3.4x) and manage future discretionary outflows so that
the Baa3 rating level can be maintained.

For the year ending June 2009, Eutelsat again achieved its revenue
and EBITDA margin growth objectives (recorded revenues of
Euro 940.5 million with EBITDA margin of 78.9% against its
objective of over EUR925 million for revenues with EBITDA margin
in excess of 78%) and revised its mid-term growth objectives
upwards covering the three year period from FY2009/10 to FY2011/12
of achieving a CAGR of 7% (from ~6% for the three year period from
FY2008/9 to FY2010/11) with an EBITDA margin in excess of 77%.
With good Q12009-10 results, Eutelsat appears to be on track to
achieve its guidance on revenues of over EUR1 billion and of
EBITDA in excess of EUR780 million for FY2009-10.  The current
ratings factor in Moody's expectation that Eutelsat will continue
to pursue a strategy focused on maximizing per transponder revenue
(new video neighborhoods, HDTV) while exploring new alleyways for
incremental growth (KA band, S band, 3D).

Within the framework of its ongoing ambitious infrastructure
investment program (with an average annual expected capital
expenditure of ~Euro 450 million over the three year period from
FY2009/10 to FY2011/12), Eutelsat successfully launched three new
satellites since the beginning of January 2009 (ATLANTIC BIRD(TM)
4A, W2A, W7) and redeployed some of its existing satellites (for
instance -- EUROBIRD(TM) 9A, EUROBIRD(TM) 16, W1) during the year
to increase capacity.  This has taken some pressure off the
company, as fill rates decreased from a tight 97.6% (as of
December 31, 2008) to an efficient 88.8% (as of June 30, 2009).
Eutelsat remains on track to launch 4 new satellites over the
course of calendar year 2010-2011, including KA-SAT, a Ka-band
satellite dedicated for consumer broadband service across Europe.
While ongoing industry growth should create demand for the
substantial incremental transponder capacity being added, some
risk of creating overcapacity remains.  In particular, the level
of (consumer) demand for the broadband services to be delivered by
the KA-SAT satellite currently remains difficult to gauge, Moody's
said.

Eutelsat's business is characterized by high EBITDA margins which
translate into strong operational cash flows.  However, high
levels of capex associated with the current launch program
together with a progressive distribution policy (pay-out ratio
between 50% and 75% of net income group share during the period
FY2009-2012) are expected to continue to fully absorb Eutelsat's
free cash flow generation in the near-term.  High capex levels
reflect both, replacement and considerable growth investment.
However, the Baa3 rating factors in Moody's expectation that the
company should produce good levels of free cash flow post
completion of the current investment program by the end of
calendar year 2011 with the launch of ATLANTIC BIRD(TM) 7.

For FY2008-09, Eutelsat reported a gross debt (including
performance incentives, operating leases and pension adjustments)
to EBITDA ratio as calculated by Moody's of 3.4x.  Given Moody's
expectation of visible EBITDA growth in the near-to-intermediate
term, this ratio should improve further despite the limitations on
free cash flow generation (see above).  While Moody's expects the
company to consider add-on acquisitions from time to time, the
Baa3 rating is calibrated on the assumption that the improving
trend in EBITDA-leverage continues in the near-term.  In any case,
the agency would expect that the company manages discretionary
outflows so that a ratio of Gross Debt/ EBITDA (as adjusted by
Moody's) of below 3.5x is maintained.

Moody's believes Eutelsat's liquidity position is sufficient for
its current needs.  The company had cash and cash equivalents of
141.37 million as of June 30, 2009.  The agency notes that
Eutelsat currently has substantial headroom under its committed
revolving credit facilities at Eutelsat SA (Euro 650 million due
2011, of which 200 million was drawn at the end of June 2009) and
Eutelsat Communications SA (fully un-drawn EUR 300 million due
2013).  The company has no long-term maturities until November
2011 when the Euro 650 million of term loan and Euro 650 million
revolving credit facility at Eutelsat SA become due.  However,
Moody's would expect Eutelsat to arrange for the timely re-
financing and/or term-out of the maturing bank debt, given the
lumpiness of the company's maturity profile with the remainder of
its debt (Euro 1.9 billion of bank facilities at Eutelsat
Communications SA) falling due in its entirety in June 2013.  The
rating assignment reflects Moody's expectation that as the company
strives to simplify its existing corporate structure, any future
re-financing of Eutelsat group's existing senior unsecured bank
debt (due 2011 and 2013) would likely be undertaken by the company
at the Eutelsat SA level.

The last rating action was on March 19, 2009, when Moody's
upgraded the CFR of Eutelsat Communications S.A. to Ba1 (from
Ba2).  Eutelsat's ratings were assigned by evaluating factors
Moody's believe are relevant to the credit profile of the issuer,
such as i) the business risk and competitive position of the
company versus others within its industry; ii) the capital
structure and financial risk of the company; iii) the projected
performance of the company over the near to intermediate term; and
iv) management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of Eutelsat's core industry and Eutelsat's ratings are
believed to be comparable to those of other issuers of similar
credit risk.

Headquartered in Paris, Eutelsat SA is a 96% owned operating
company of Eutelsat communications SA which is a leading,
internationally operating supplier of fixed satellite services.


PEUGEOT CITROEN: Aims to Sell 100,000 Sedans in China Annually
--------------------------------------------------------------
Laurence Frost at Bloomberg News reports that PSA Peugeot Citroen
said it's targeting 100,000 annual sales of the planned Peugeot
408 sedan in China as it seeks to more than double its share of
the market within six years.

Bloomberg relates Executive Vice President Jean-Marc Gales said
the mid-sized model will help the Peugeot brand achieve 30% growth
in China this year, twice the expected overall market expansion.
It will be introduced in April, Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on Jan. 19,
2010, Bloomberg News said Peugeot and Mitsubishi Motors Corp.'s
managers met in Tokyo to negotiate a deal that may give the French
carmaker a controlling stake in the Japanese company.  According
to Bloomberg, two people familiar with the matter said a
transaction would involve a share swap.  Bloomberg said acquiring
a Mitsubishi stake may stretch finances at Peugeot, which had EUR2
billion (US$2.9 billion) in net industrial debt as of June 30 and
bonds rated below investment grade by Standard & Poor's.  PSA
Peugeot is rated BB+ by Standard & Poor's.

PSA Peugeot Citroen S.A. -- http://www.psa-peugeot-citroen.com/
-- is a France-based manufacturer of passenger cars and light
commercial vehicles.  It produces vehicles under the Peugeot and
Citroen brands.  In addition to its automobile division, the
Company includes Banque PSA Finance, which supports the sale of
Peugeot and Citroen vehicles by financing new vehicle and
replacement parts inventory for dealers and offering financing and
related services to car buyers; Faurecia, an automotive equipment
manufacturer focused on four component families: seats, vehicle
interior, front end and exhaust systems; Gefco, which offers
logistics services covering the entire supply chain, including
overland, sea and air transport, industrial logistics, container
management, vehicle preparation and distribution, and customs and
value added tax (VAT) representation, and Peugeot Motocycles,
which manufactures scooters and motorcycles.  In 2008, PSA Peugeot
Citroen S.A. sold over 3.2 million vehicles in 150 countries
worldwide.


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BLACKSHORE HOLDINGS: Enters Into Interim Examinership
-----------------------------------------------------
Caroline Madden at The Irish Times reports that Blackshore
Holdings has gone into interim examinership.

Blackshore is the parent company of Galway-based oil distribution
business Fate Park, which itself went into examinership last April
after developing cash-flow difficulties, the report relates.  It
is understood that during that course of that examinership, it
emerged that one of Fate Park's creditors, Esso, had obtained a
parent guarantee from Blackshore, the report states.  Esso was
Fate Park's biggest creditor, being owed EUR12.5 million.

Esso Ireland recently made a petition to the High Court to wind up
Blackshore, the report recounts.

According to the report, to protect itself from this winding-up
petition, which was due to be heard on Monday, February 1,
Blackshore obtained court protection on Wednesday and appointed
insolvency expert Michael McAteer of Grant Thornton as interim
examiner on Thursday.

A full examinership hearing will take place on February 8, the
report notes.

Blackshore Holdings recorded a loss of EUR7.9 million in the year
to the end of February 2008, the report discloses.

Blackshore Holdings is owned by Galway businessman John Sweeney.
It comprises Mr. Sweeney's oil, property and hotel interests.


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GIANNI VERSACE: Inks Preliminary Agreement with Unions on Job Cuts
------------------------------------------------------------------
Andrew Roberts at Bloomberg News reports that Gianni Versace SpA
has signed a preliminary agreement with unions on job cuts in
Italy.

According to Bloomberg, Versace Chief Executive Officer Gian
Giacomo Ferraris said the accord, which includes the closure of
the company's three-year-old accessories factory in Burago, near
Milan, will be concluded Feb. 4.  The cuts will commence in March
and end in June, Bloomberg notes.

Bloomberg recalls Versace, which was founded by the late Italian
designer Gianni Versace in 1978, said Oct. 28 it would eliminate
about 350 out of 1,360 positions worldwide, or 26% of its
workforce, and scale down investments.  Mr. Ferraris, as cited by
Bloomberg, said the luxury clothing maker expects to report a
EUR30-million (US$42 million) operating loss for 2009, while sales
probably fell 19% to EUR273 million, hurt by falling wholesale
revenue.

Bloomberg relates Mr. Ferraris said about 40 jobs will go at
Burago, mainly administrative and warehousing functions, while 37
employees, who have the product "know-how," will move to Versace's
ready-to-wear plant in Novara, also near Milan.

"We will not touch design, product development or brand
management," Bloomberg quoted Mr. Ferraris as saying.

Bloomberg says Versace introduced a lower-priced women's wear
collection as part of a plan to return to profitability in 2011.
The new collection, which is under Donatella Versace's creative
direction, is the women's ready-to-wear counterpart to Versace's
lower-priced men's line and is also labeled Versace Collection,
Bloomberg states.

Gianni Versace S.p.A. -- http://www.versace.com/-- is an
Italian-based international fashion house.  The company produces
accessories, fragrances, makeup and home furnishings as well as
clothes.


* ITALY: Can't Afford to Cut Taxes, Debt Nears 120% of GDP
----------------------------------------------------------
Lorenzo Totaro at Bloomberg News report that Unicredit SpA said
Italy can't afford to cut taxes as its debt nears 120% of gross
domestic product this year, the second-highest in the European
Union after Greece.

"Public finances are in a process of evident deterioration, even
though the worsening trend is significantly less marked than in
the rest of the euro zone," Bloomberg quoted Marco Valli, a
Milan-based economist at Unicredit, as saying in an e-mailed
report Tuesday.  "Italy can't afford any such move any time soon."

Italy's debt will rise this year to 117% of GDP, Bloomberg says,
citing the European Commission.  Servicing it costs about EUR81
billion (US$113.9 billion) a year, Bloomberg notes.

According to Bloomberg, Mr. Valli said "The main message we want
to provide is that Italy will exit the crisis with a debt-to-GDP
ratio around 120%."  Mr. Valli, as cited by Bloomberg, said any
tax cut "has to come only after structural reforms on the spending
side deliver tangible results."


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


ATF BANK: Moody's Cuts Junior Subordinated Debt Rating to 'B1'
--------------------------------------------------------------
Moody's Investors Service has downgraded the ratings on certain
hybrid securities of three Kazakh banks, namely Kazkommertsbank,
ATF Bank and Bank CenterCredit.  This rating action is in line
with the rating agency's revised Guidelines for Rating Bank
Hybrids and Subordinated Debt, published in November 2009.

This concludes Moody's review for possible downgrade that began on
November 18, 2009, which was the last rating action date for each
issuer.  The rating outlook for Kazkommertsbank, ATF Bank and Bank
CenterCredit remains negative, and all other ratings on these
banks remain unchanged.

Prior to the global financial crisis, Moody's had incorporated
into its ratings an assumption that support provided by national
governments and central banks to support a troubled bank would, to
some extent, benefit the subordinated debt holders as well as the
senior creditors.  The systemic support for these instruments has
not been forthcoming in many cases.  Moody's revised methodology
largely removes previous assumptions of systemic support,
resulting in the rating action.  In addition, the revised
methodology generally widens the notching on a hybrid's rating
that is based on the instrument's features.

                     Rating Action in Detail

The starting point in Moody's revised approach to rating hybrid
securities is the Adjusted Baseline Credit Assessment.  The
Adjusted BCA reflects the bank's stand-alone credit strength,
including parental and/or cooperative support, if applicable.  The
Adjusted BCA excludes systemic support.

The Adjusted BCA is B2 for Kazkommertsbank and is the same as the
BCA given that parental and/or cooperative support does not apply.

The Adjusted BCA is Ba2 for ATF Bank and includes 3-notches of
uplift from its BCA of B2 for parental support from UniCredit SpA.

The Adjusted BCA is B1 for Bank CenterCredit and is the same as
the BCA given that parental and/or cooperative support does not
apply.

The hybrid instruments issued by the above mentioned Kazakh banks
are perpetual and rank deeply subordinated in liquidation.  Coupon
payments must be suspended upon breach of minimum capital adequacy
ratios or liquidity ratios, or if such payments would result in a
breach of those ratios.  Any unpaid coupons are non-cumulative.
Moody's generally rates such instruments two notches below an
issuer's Adjusted BCA.

The affected securities of the banks are:

* Kazkommertsbank's junior subordinated debt (ISIN US486668AA44)
  rating was downgraded from B3 to Caa1, which is two notches
  below the bank's Adjusted BCA of B2.

* ATF Bank's junior subordinated debt (ISIN XS0274618247) rating
  was downgraded from Ba3 to B1, which is two notches below the
  Adjusted BCA of Ba2.

* Bank CenterCredit's junior subordinated debt (ISIN XS0267377454)
  rating was downgraded from B2 to B3, which is two notches below
  the Adjusted BCA of B1.


BANK CENTERCREDIT: Moody's Cuts Jr. Subordinated Debt Rating to B3
------------------------------------------------------------------
Moody's Investors Service has downgraded the ratings on certain
hybrid securities of three Kazakh banks, namely Kazkommertsbank,
ATF Bank and Bank CenterCredit.  This rating action is in line
with the rating agency's revised Guidelines for Rating Bank
Hybrids and Subordinated Debt, published in November 2009.

This concludes Moody's review for possible downgrade that began on
November 18, 2009, which was the last rating action date for each
issuer.  The rating outlook for Kazkommertsbank, ATF Bank and Bank
CenterCredit remains negative, and all other ratings on these
banks remain unchanged.

Prior to the global financial crisis, Moody's had incorporated
into its ratings an assumption that support provided by national
governments and central banks to support a troubled bank would, to
some extent, benefit the subordinated debt holders as well as the
senior creditors.  The systemic support for these instruments has
not been forthcoming in many cases.  Moody's revised methodology
largely removes previous assumptions of systemic support,
resulting in the rating action.  In addition, the revised
methodology generally widens the notching on a hybrid's rating
that is based on the instrument's features.

                     Rating Action in Detail

The starting point in Moody's revised approach to rating hybrid
securities is the Adjusted Baseline Credit Assessment.  The
Adjusted BCA reflects the bank's stand-alone credit strength,
including parental and/or cooperative support, if applicable.  The
Adjusted BCA excludes systemic support.

The Adjusted BCA is B2 for Kazkommertsbank and is the same as the
BCA given that parental and/or cooperative support does not apply.

The Adjusted BCA is Ba2 for ATF Bank and includes 3-notches of
uplift from its BCA of B2 for parental support from UniCredit SpA.

The Adjusted BCA is B1 for Bank CenterCredit and is the same as
the BCA given that parental and/or cooperative support does not
apply.

The hybrid instruments issued by the above mentioned Kazakh banks
are perpetual and rank deeply subordinated in liquidation.  Coupon
payments must be suspended upon breach of minimum capital adequacy
ratios or liquidity ratios, or if such payments would result in a
breach of those ratios.  Any unpaid coupons are non-cumulative.
Moody's generally rates such instruments two notches below an
issuer's Adjusted BCA.

The affected securities of the banks are:

* Kazkommertsbank's junior subordinated debt (ISIN US486668AA44)
  rating was downgraded from B3 to Caa1, which is two notches
  below the bank's Adjusted BCA of B2.

* ATF Bank's junior subordinated debt (ISIN XS0274618247) rating
  was downgraded from Ba3 to B1, which is two notches below the
  Adjusted BCA of Ba2.

* Bank CenterCredit's junior subordinated debt (ISIN XS0267377454)
  rating was downgraded from B2 to B3, which is two notches below
  the Adjusted BCA of B1.


KAZKOMMERTSBANK: Moody's Junks Junior Subordinated Debt Rating
--------------------------------------------------------------
Moody's Investors Service has downgraded the ratings on certain
hybrid securities of three Kazakh banks, namely Kazkommertsbank,
ATF Bank and Bank CenterCredit.  This rating action is in line
with the rating agency's revised Guidelines for Rating Bank
Hybrids and Subordinated Debt, published in November 2009.

This concludes Moody's review for possible downgrade that began on
November 18, 2009, which was the last rating action date for each
issuer.  The rating outlook for Kazkommertsbank, ATF Bank and Bank
CenterCredit remains negative, and all other ratings on these
banks remain unchanged.

Prior to the global financial crisis, Moody's had incorporated
into its ratings an assumption that support provided by national
governments and central banks to support a troubled bank would, to
some extent, benefit the subordinated debt holders as well as the
senior creditors.  The systemic support for these instruments has
not been forthcoming in many cases.  Moody's revised methodology
largely removes previous assumptions of systemic support,
resulting in the rating action.  In addition, the revised
methodology generally widens the notching on a hybrid's rating
that is based on the instrument's features.

                     Rating Action in Detail

The starting point in Moody's revised approach to rating hybrid
securities is the Adjusted Baseline Credit Assessment.  The
Adjusted BCA reflects the bank's stand-alone credit strength,
including parental and/or cooperative support, if applicable.  The
Adjusted BCA excludes systemic support.

The Adjusted BCA is B2 for Kazkommertsbank and is the same as the
BCA given that parental and/or cooperative support does not apply.

The Adjusted BCA is Ba2 for ATF Bank and includes 3-notches of
uplift from its BCA of B2 for parental support from UniCredit SpA.

The Adjusted BCA is B1 for Bank CenterCredit and is the same as
the BCA given that parental and/or cooperative support does not
apply.

The hybrid instruments issued by the above mentioned Kazakh banks
are perpetual and rank deeply subordinated in liquidation.  Coupon
payments must be suspended upon breach of minimum capital adequacy
ratios or liquidity ratios, or if such payments would result in a
breach of those ratios.  Any unpaid coupons are non-cumulative.
Moody's generally rates such instruments two notches below an
issuer's Adjusted BCA.

The affected securities of the banks are:

* Kazkommertsbank's junior subordinated debt (ISIN US486668AA44)
  rating was downgraded from B3 to Caa1, which is two notches
  below the bank's Adjusted BCA of B2.

* ATF Bank's junior subordinated debt (ISIN XS0274618247) rating
  was downgraded from Ba3 to B1, which is two notches below the
  Adjusted BCA of Ba2.

* Bank CenterCredit's junior subordinated debt (ISIN XS0267377454)
  rating was downgraded from B2 to B3, which is two notches below
  the Adjusted BCA of B1.


* KAZAKHSTAN: Banks Can't Afford to Write Off Bad Loans, S&P Says
-----------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that Standard &
Poor's said Kazakhstan's banks can't afford to write off
nonperforming loans and recognize them as losses because they have
"very limited sources of new capital" to compensate.

"It's easier to keep the problem loans on balance sheets,"
Bloomberg quoted Ekaterina Trofimova, a Paris-based S&P bank
rating director, as saying in a Jan. 26 interview in Almaty.
"Write-offs by Kazakh banks that haven't defaulted won't exceed an
average of 5% as lenders focus on restructuring customers' debt."

Bloomberg relates the Agency for Financial Supervision, citing
preliminary data, on Jan. 26 said on its Web site, Kazakhstan's 38
banks reported a total loss of KZT2.84 trillion (US$19.2 billion)
in 2009.  According to Bloomberg, the Almaty-based regulator said
banks' total assets declined 2.8% in the year to KZT11.56
trillion, while total loans rose 4.3% to KZT9.64 trillion.

Bloomberg notes the agency said the share of "hopeless" loans in
banks' portfolios was 30.6% in 2009, adding that "questionable"
loans accounted for 44% of the total and "standard" loans for
25.4%.

According to Bloomberg, the financial regulator said Kazakh banks
had KZT3.64 trillion, or 37.7% of total loans, in reserve as of
Jan. 1.

"We expect provisions to continue increasing and catching up with
the real level of problem loans," Ms. Trofimova said, according to
Bloomberg.  "We would expect Kazakh non-defaulted banks to
increase provisions to an average of 24 percent of total loans,
but there might be wide deviations."

Ms. Trofimova, as cited by Bloomberg, said such banks may begin
releasing provisions starting in 2011 as the Kazakh economy
improves.


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


BEST SME: Moody's Assigns 'Ba1' Rating on EUR105 Mln Class E Notes
------------------------------------------------------------------
Moody's Investors Service has withdrawn these ratings of the notes
issued by BEST SME 2008 B.V.:

  -- EUR9,912,000,000 (initial balance) Class A Floating Rate
     Notes due 2026, previously on 15 December 2008, assigned Aaa

  -- EUR53,000,000 (initial balance) Class B Floating Rate Notes
     due 2026, previously on 10 September 2009, confirmed to Aa1

  -- EUR262,000,000 (initial balance) Class C Floating Rate Notes
     due 2026, previously on 10 September 2009, confirmed to Aa3

  -- EUR168,000,000 (initial balance) Class D Floating Rate Notes
     due 2026, previously on 15 December 2008, assigned Baa1

  -- EUR105,000,000 (initial balance) Class E Floating Rate Notes
     due 2026, previously on 15 December 2008, assigned Ba1

The withdrawal of the ratings follows the full redemption of the
notes at par on the first Optional Redemption Date on January 11,
2010.

Best SME 2008 B.V. is second in a series of transactions backed by
loans to Dutch small and medium sized enterprises originated by
Rabobank, for an amount of EUR10.5 billion at closing.


COPERNICUS EURO: Fitch Puts 'BB'-Rated Class D Notes on Watch Neg.
------------------------------------------------------------------
Fitch Ratings has placed all classes of Copernicus Euro CDO I B.V.
on Rating Watch Negative, as listed below:

  -- Class B-1 notes (ISIN XS0131035007): 'AAA' on RWN

  -- Class B-2 notes (ISIN XS0131115536): 'AAA' on RWN

  -- Class C-1 notes (ISIN XS0131036310): 'BBB' on RWN

  -- Class C-2 notes (ISIN XS0131113838): 'BBB' on RWN

  -- Class D notes (ISIN XS0131037045): 'B' on RWN; Recovery
     Rating 'RR1'

The RWN reflects the reduction of portfolio interest proceeds to
service the interest payment on the notes.  As per the December
2009 trustee report, all interest coverage tests have been
breached.  The class C and class D interest coverage tests have
fallen to 58% and 37.2% respectively indicating that expected
interest proceeds from the portfolio are not sufficient to ensure
the interest payment of class C and class D.  At the last payment
date in November 2009, principal proceeds have been used to
maintain the class C interest payment.  This is detrimental to the
transaction as the level of credit enhancement is being reduced.

The RWN resolution would likely lead to a downgrade of the class
C-1, C-2 notes to non-investment grade.  Class D notes are at risk
of default.  Class B-1 and B-2 notes ratings are expected to
remain in the high investment-grade categories.

Fitch employed its global rating criteria for corporate CDOs to
analyse the quality of the underlying assets.  In accordance with
the agency's cash flow analysis criteria, Fitch also took into
account the transactions' priority of payments including relevant
structural features such as the excess spread-trapping mechanism
and coverage tests.


DUTCH MBS: Fitch Affirms Ratings on Class E Notes at 'BB'
---------------------------------------------------------
Fitch Ratings has upgraded four tranches and affirmed eight
tranches of the Dutch MBS XII & XIV transactions.

The rating upgrades reflect the deleveraging of the RMBS
transactions that has resulted in increased levels of credit
enhancement.  The affirmations reflect the stable performance of
both transactions to date, with low arrears and losses, despite
Netherland's difficult economic environment.

Dutch MBS XII & XIV were issued in 2005 and are backed by mortgage
loans originated by subsidiaries of NIBC Bank N.V. and serviced by
STATER Nederland B.V. and Quion Groep B.V.  The transactions have
benefited from significant seasoning and deleveraging since
issuance.

The transactions have had low arrears and losses.  Cumulative
losses in Dutch MBS XII & XIV were equal to 0.05% and 0.04% of the
original balance respectively.  Arrears greater than 90 days were
equal to 0.15% and 0.37% of the current balance respectively.  The
losses and arrears to date are well within the rating stresses
applied by Fitch.  The transactions do not allow for excess spread
to cover losses and the first loss piece is the unrated class F
notes.

Due to the transaction's good performance, the class B and C notes
of both transactions have been upgraded.  Despite the
transaction's good performance, the Outlooks for the class D and E
notes of Dutch MBS XII have been revised to Stable from Positive
due to the challenging macroeconomic environment in the
Netherlands, which could result in a change in borrower behavior.
The change in Outlook reflects the low likelihood of a positive
rating action, but does not imply that Fitch expects any negative
rating migration.

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:

Dutch MBS XII B.V.:

  -- Class A (ISIN XS0216830199): affirmed at 'AAA'; Outlook
     Stable; Loss Severity rating of 'LS-1'

  -- IO Strip (ISIN XS0216831916): affirmed at 'AAA'

  -- Class B (ISIN XS0216832302): upgraded to 'AA+' from 'AA';
     Outlook Stable; 'LS-1'

  -- Class C (ISIN XS0216832724): upgraded to 'A+' from 'A';
     Outlook Stable; 'LS-1'

  -- Class D (ISIN XS0216833375): affirmed at 'BBB+'; Outlook
     revised to Stable from Positive; 'LS-3'

  -- Class E (ISIN XS0216835073): affirmed at 'BB'; Outlook
     revised to Stable from Positive; 'LS-3'

Dutch MBS XIV B.V.:

  -- Class A (ISIN XS0235088779): affirmed at 'AAA'; Outlook
     Stable; 'LS-1'

  -- IO Strip (ISIN XS0235093696): affirmed at 'AAA'

  -- Class B (ISIN XS0235089231): upgraded to 'AA+' from 'AA';
     Outlook Stable; 'LS-2'

  -- Class C (ISIN XS0235090320): upgraded to 'A+' from 'A';
     Outlook Stable; 'LS-2'

  -- Class D (ISIN XS0235091054): affirmed at 'BBB'; Outlook
     Stable; 'LS-3'

  -- Class E (ISIN XS0235091724): affirmed at 'BB'; Outlook
     Stable; 'LS-3'


=============
R O M A N I A
=============


* ROMANIA: IMF Team Recommends Unlocking Bailout Loan
-----------------------------------------------------
Adam Brown and Irina Savu at Bloomberg News report that an
International Monetary Fund mission will recommend releasing the
next payment of Romania's US$30 billion bailout in February after
the nation's one-month-old government won parliamentary approval
for the 2010 budget.

"By the end of February the money will be here in Romania,"
Bloomberg quoted Jeffrey Franks, head of an IMF mission to
Bucharest, as saying Tuesday after a seven-day visit to Romania.
"We are going to the IMF board in mid-February to go on with the
next disbursement" of EUR2.3 billion (US$3.2 billion).

Bloomberg recalls the bailout package was frozen on Nov. 6 after
political infighting toppled the government.  The IMF demanded the
formation of a new government and the passage of the budget before
resuming payments, Bloomberg relates.  Prime Minister Emil Boc put
together a Cabinet on Dec. 23 and lawmakers approved the spending
and revenue plan on Jan. 14, Bloomberg recounts.

Mr. Franks, as cited by Bloomberg, said the IMF board will decide
on the recommendation in the middle of February.  The delayed
tranche of EUR1.5 billion, plus EUR800 million that was scheduled
for March may be disbursed within days, Bloomberg says.


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


INDEPENDENT NEWS: Aeroflot Lebedev Stake Sale No Link to Purchase
-----------------------------------------------------------------
Catherine Belton at The Financial Times reports that Russian
tycoon Alexander Lebedev said there is no link between his
purchase of Independent News & Media's The Independent and the
sale of his Aeroflot shares.

Mr. Lebedev, the FT says, is to sell his 25.8% stake in Aeroflot
back to the state at a discounted price.

The FT relates a spokesman for Mr. Lebedev, who also own London's
Evening Standard newspaper, said Aeroflot's board of directors
approved the deal, worth approximately US$400 million, at a board
meeting last week.

Mr. Lebedev, the FT discloses, is in exclusive talks with
Independent News & Media, UK media group, to buy The Independent,
the UK daily national newspaper and its sister publication The
Independent on Sunday.

According to the FT, it is understood that the two parties are
still negotiating the paper's printing contract with Trinity
Mirror and its shared services agreement with Daily Mail & General
Trust and pension deficits.

As reported by the Troubled Company Reporter-Europe on Dec. 21,
2009, The Financial Times said a successful deal on the
Independent titles would result in cost savings because INM
announced it was moving its UK newspapers into offices at DMGT's
London headquarters last year in an effort to save GBP2 million to
GBP3 million in costs.  The Independent group had already
undergone several waves of job cuts, the FT noted.  Independent
was widely reported earlier in 2009 to be suffering losses of more
than GBP10 million a year, the FT disclosed.

Citing the FT, the Troubled Company Reporter-Europe on Nov. 12,
2009, INM secured approval of a proposed debt-for-equity swap
refinancing from bondholders.  The FT disclosed the plan involves
the exchange of EUR123 million (US$184 million, GBP110 million) of
bonds for a 46% stake in the new company.  According to the FT,
under the plan approved by bondholders, existing IN&M shareholders
would be diluted to around 52%.

                  About Independent News & Media

Headquartered in Dublin, Ireland, Independent News & Media PLC
(ISE:IPD) -- http://www.inmplc.com/-- is engaged in printing and
publishing of metropolitan, national, provincial and regional
newspapers in Australia, India, Ireland, New Zealand, South Africa
and the United Kingdom.  It also has radio operations in Australia
and New Zealand, and outdoor advertising operations in Australia,
New Zealand, South-East Asia and across Africa.  The Company also
has online operations across each of its principal markets.  The
Company has three business segments: printing, publishing, online
and distribution of newspapers and magazines and commercial
printing; radio, and outdoor advertising.  INM publishes over 200
newspaper and magazine titles, delivering a combined weekly
circulation of over 32 million copies with a weekly audience of
over 100 million consumers.  In March 2008, it acquired The Sligo
Champion.  During the year ended December 31, 2007, the Company
acquired the remaining 50% interest in Toowoomba Newspapers Pty
Ltd.


ROSAVIA: Lebedev Stake May Be Used as Currency to Swap for Control
------------------------------------------------------------------
Catherine Belton at The Financial Times reports that Russian
tycoon Alexander Lebedev is to sell his 25.8% stake in Aeroflot
back to the state at a discounted price.

The FT relates a spokesman for Mr. Lebedev, who also own London's
Evening Standard newspaper, said Aeroflot's board of directors
approved the deal, worth approximately US$400 million, at a board
meeting last week.

According to the FT, the deal could see the state consolidate its
control over the country's biggest airline, boosting its stake
from 51% to nearly 77%.  It could also pave the way for Aeroflot
to use part of Mr. Lebedev's stake as currency to swap for control
of Rosavia, a rival holding company being set up by Sergei
Chemezov, the powerful tycoon, who runs the state conglomerate
Russian Technologies, the FT states.

Rosavia is being created out of 11 insolvent state and private
airlines, including KrasAir, Domededovo Airlines and Samara
Airlines, the FT notes.  Aeroflot shareholders have feared that
the creation of a rival major state airline could undercut
Aeroflot, the FT says.

According to the FT, insiders say a plan to merge Rosavia and
potentially other airline assets into Aeroflot is under
discussion, but is still facing opposition.

As reported by the Troubled Company Reporter-Europe on Jan. 13,
2010, Bloomberg News said Russia may combine state aviation assets
under Aeroflot, the country's largest airline, as the government
seeks to help the industry recover from the worst economic slump
on record.  Acquiring Rosavia would allow Aeroflot "to strengthen
its leadership on the market significantly," VTB Capital analysts
led by Elena Sakhnova wrote in a research note on Jan. 11,
according to Bloomberg.  Still, "taking over Rosavia with its
large debt burden and near-bankrupt small airlines does not sound
in the company's and shareholders' best interests," the note said.


SAROVBUSINESSBANK: Fitch Affirms Individual Rating at 'D/E'
-----------------------------------------------------------
Fitch Ratings has affirmed and simultaneously withdrawn Russia-
based Sarovbusinessbank's ratings, including its Long-term foreign
currency Issuer Default Rating of 'B-' with a Stable Outlook.
Fitch will no longer provide ratings or analytical coverage of
SBB.

These ratings have been affirmed and withdrawn:

* Long-term foreign currency IDR: affirmed at 'B-'; Outlook
  Stable; withdrawn

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

* Individual Rating: affirmed at 'D/E'; withdrawn

* Support Rating: affirmed at '5'; withdrawn

* Support Rating Floor: affirmed at 'NF'; withdrawn

* National Long-term Rating: affirmed at 'BB-(rus)'; Outlook
  Stable; withdrawn

The rating affirmations reflect SBB's significant loss absorption
capacity, currently low reported non-performing loans (loans
overdue more than 90 days stood at 1.6% of total loans at end-
2009), and comfortable liquidity.  However, SBB has high exposure
to the real estate and construction sectors (19% of total loans at
end-2009), a significant portion of rolled-over loans (10% of
total loans at end-2009), and a short-term funding base.


SEVERSTAL OAO: To Restart Production at Ohio Steel Mill
-------------------------------------------------------
Maria Kolesnikova and Ilya Khrennikov at Bloomberg News report
that OAO Severstal said it will restart production at a mill in
northeastern Ohio by the end of the current quarter as demand
recovers.

According to Bloomberg, Cherepovets, Russia-based Severstal said
in a Regulatory News Service statement on Jan. 25 that talks are
under way with the United Steel Workers union concerning the
number of employees to be recalled to the Warren plant.  Bloomberg
relates the company also said its Mountain State Carbon coke-
making unit will return to full production by the end of this
month.

"Severstal Warren, a fully integrated steel plant, is scheduled to
return to service its blast furnace, steelmaking and hot strip
mill facilities late in the first quarter of 2010," Bloomberg
quoted the steelmaker as saying.

Headquartered in Cherepovets, Russia, Severstal OAO, through its
subsidiaries -- http://www.severstal.com/-- operates in seven
segments.  The mining segment comprises iron ore and coal mining
complexes and gold mining assets.  The Russian Steel segment
comprises the Company's steel production and automotive
galvanizing facilities.  The Lucchini segment comprises plants and
service centers, including Piombino and Ascometal business units.
The North America segment consists of two integrated iron and
steel mills.  Izhora Pipe Mill operates a large-diameter pipe mill
in Northwest Russia.  The Metalware segment comprises plants
containing wire drawing equipment that takes long products from
the Russian Steel and Lucchini segments and external suppliers and
turns them into products with a higher value for the Russian and
International markets.  The Financing segment, until November
2007, operated a retail bank.  In December 2008, the Company
acquired ZAO Trade House Severstal-Invest.  In January 2008, it
acquired baracom Limited.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Jan. 22,
2010, Fitch Ratings has affirmed Russia-based metals and mining
company OAO Severstal's Long-term foreign currency Issuer Default
Rating at 'B+', removed it from Rating Watch Negative and assigned
a Negative Outlook.  Fitch has simultaneously affirmed Severstal's
Long-term local currency IDR at 'B+' and its National Long-term
rating at 'A(rus)'.  Both these ratings have also been removed
from RWN and assigned Negative Outlooks.  The Short-term foreign
currency IDR is affirmed at 'B'.  Severstal's senior unsecured
rating is affirmed at 'B+' and removed from RWN.  The Recovery
Rating for the senior unsecured debt is 'RR4'.

Fitch said the Negative Outlook reflects Severstal's high
dependence on the speed of recovery in demand and prices for steel
products in various markets, high expected leverage in FY09 above
'B+'-rated peers, uncertainties on finalizing restructuring plans
for North American and European operations, and the risks in
executing these restructuring plans.


UC RUSAL: VEB May Extend Half of US$4.5 Bln Loan by One Year
------------------------------------------------------------
Yuriy Humber at Bloomberg News reports that United Co. Rusal's
largest creditor, Russian state-controlled lender Vnesheconombank,
said it may extend half of a US$4.5 billion loan by one year to
help ease the company's debt burden.

The bank, which is also called VEB, plans to support Rusal's core
activities," Bloomberg quoted VEB Chief Executive Officer Vladimir
Dmitriev as saying in an interview in Davos Wednesday.  "We're
very much concerned for the sustainability of this company."

According to Bloomberg, Mr. Dmitriev said VEB can extend half its
loan for a year subject to approval from the bank's supervisory
board, chaired by Prime Minister Vladimir Putin.  Bloomberg
recalls Sberbank Chief Executive Officer German Gref said Jan. 21
state-owned OAO Sberbank, Russia's biggest lender, will refinance
the other half of the loan.

VEB's loan is the last part of Rusal's debt to be restructured,
Bloomberg notes.  More than 70 lenders renegotiated loans in
December in a US$16.8 billion deal, the biggest agreement of its
kind in Russia, paving the way for Rusal, controlled by
billionaire Oleg Deripaska, to hold a HK$17.4 billion (US$2.2
billion) initial public offering in Hong Kong, Bloomberg recounts.

As reported by the Troubled Company Reporter-Europe on Jan. 29,
2010, Bloomberg News said Rusal tumbled 11% in its Hong Kong
trading debut as demand for new equity waned after the city's
benchmark index dropped from a November high.  Bloomberg disclosed
the Moscow-based company fell to HK$9.66, the worst Hong Kong
debut since Dec. 18, on Wednesday from its listing price of
HK$10.80.  Rusal, the first 2010 IPO in the city, will use net
proceeds of HK$16.7 billion (US$2.1 billion) to pay down US$14.9
billion of debt, Bloomberg said.

RUSAL -- http://www.rusal.com/-- is among the world's top
aluminum producers, along with Rio Tinto Alcan and Alcoa.  Formed
in 2000 from various parts of the old Soviet state apparatus,
RUSAL produces about 4 million tons of aluminum, 11 million tons
of alumina, and 6 million tons of bauxite.  Its aluminum business
include packaging and foil operations in addition to a network of
smelters.  Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit.  RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.


* RUSSIA: DB Analyst Says Investors Lowball Banks' Difficulties
---------------------------------------------------------------
Laura Cochrane at Bloomberg News reports that Bob Kommers, an
analyst at Deutsche Bank in Moscow, said investors are
"underestimating" Russian banks' difficulties as non-performing
loans are likely to rise and lending rates decrease, hurting
profits.

"People are underestimating the risks and overstating the recovery
potential," Bloomberg quoted Mr. Kommers as saying Thursday in an
interview in London.

Mr. Kommers, as cited by Bloomberg, said bad loans in Russia will
climb to as high as 20% of all lending this year, based on
international definitions of non-performing assets, as companies
and individuals miss payments on loans that were restructured
during the global recession in 2009.

Bloomberg notes Mr. Kommers said banks will also face falling net-
interest margins as revenue from lending decreases.


=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


* MONTENEGRO: Moody's May Raise Credit Outlook to Stable
--------------------------------------------------------
Agnes Lovasz at Bloomberg News reports that Moody's Investors
Service may raise the credit outlooks on five emerging European
countries by July as their economies recover from recession and
their banking systems stabilize.

According to Bloomberg,  Kenneth Orchard, a London-based senior
analyst at Moody's, said in a Jan. 22 telephone interview the
rating agency may upgrade to stable from negative the outlooks for
Hungary, Latvia, Lithuania, Estonia and Montenegro.

The "economies are stabilizing and the financial stresses are
diminishing, so there is a possibility that these outlooks may
change to stable," Bloomberg quoted Mr. Orchard as saying.  "We
have seen some improvements in the last three months.  This
applies equally to all of them."

Moody's rates Estonia's foreign-currency debt A1, its highest
grade for a non-euro member east European state along with the
Czech Republic, Bloomberg discloses.  It has a Baa3 rating for
Latvia, the lowest investment grade and rates Hungary and
Lithuania two steps higher, at Baa1, Bloomberg states.  Montenegro
has a Ba3 rating from Moody's, three steps below investment grade,
Bloomberg notes.


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


FORD MOTOR: Geely to Run Volvo Separately to Protect Brand Image
----------------------------------------------------------------
Patti Waldmeir at The Financial Times reports that Zhejiang Geely
Holding Group Co. Ltd. is closing on a deal to buy Volvo Car Corp.
from Ford Motor Co.

According to the FT, Geely says it plans to run the Swedish group
as a separate entity to protect its brand image both in China and
overseas.

Freeman Shen, Geely's vice-president for international operations,
told the FT the company had no plans to move Volvo's main
production base or research and development operations to China in
the near future.

"We want to be careful not to damage the Volvo brand," the FT
quoted Mr. Shen as saying.  "We don't want the image of a luxury
car made in a third world country [where labor is cheap].  We want
the image of a European luxury car, albeit owned by a Chinese
owner."

The deal is expected to be signed before China's lunar new year
holiday begins on February 14, the FT notes.

Citing the FT, the Troubled Company Reporter-Europe reported on
Oct. 30, 2009, that, Ford on Oct. 28 named a consortium headed by
Geely as the preferred bidder for Volvo.  According to the FT, two
people familiar with the matter said the privately held group
offered just under US$2 billion for Volvo, although Ford gave no
price for Geely's bid.  The FT disclosed one of the people said US
and Chinese companies were also discussing a deal to see Geely
take control from Ford of Volvo's captive finance operations,
worth another US$5 billion to US$6 billion.

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

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

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

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

On Nov. 3, 2009, S&P raised the corporate credit ratings on Ford
Motor Co. and Ford Motor Credit Co. LLC to 'B-' from 'CCC+'.  Ford
Motor Co. carries a long-term issuer default rating of 'CCC', with
a positive outlook, from Fitch Ratings.


ROYAL OPERA: May Be Declared Bankrupt, Managing Director Says
-------------------------------------------------------------
Sweden's Royal Opera is facing a financial crisis which may force
it to close, SR International reports citing the opera's managing
director.

According to the report, the opera has debts of almost US$1.4
million.

The report relates the managing director said if the budget cannot
be brought under control this year, the opera may be declared
bankrupt.

As part of a series of cost cutting measures the opera has
announced the cancellation of this season's only modern production
which it is commissioned to stage each year by the Swedish state,
the report notes.


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


OERLIKON CORP: Vekselberg Faces Fine Over Stake Acquisition
-----------------------------------------------------------
Haig Simonian at The Financial Times reports that Swiss
authorities are seeking to impose a record CHF120 million (US$114
million) fine on Russian oligarch Viktor Vekselberg and two
Austrian investors for allegedly breaching reporting rules in
building stakes in the troubled Oerlikon industrial group.

According to the FT, Renova, Mr. Vekselberg's holding company,
immediately rejected the fine.  The FT relates the company denied
it had broken any rules in buying two stakes in Oerlikon in 2006,
and said it would challenge the decision in court.

Mr. Vekselberg faces a CHF40 million fine with Ronny Pecik and
Georg Stumpf, the two Austrian investors in Oerlikon, facing
similar penalties, the FT notes.

The fine, the FT says, represents about 20% of the value of
Renova's full stake in Oerlikon, whose shares have plunged in
recent months on falling orders, stretched finances and
restructuring needs.

Oerlikon, the FT discloses, is locked in restructuring talks with
its banks, with an initial CHF600 million debt repayment due
before the end of the first quarter.  The company late last year
said it hoped to conclude talks by the end of March, leading to a
recapitalization underwritten by Renova, but conditional on the
banks forgiving some debts or exchanging debt for equity, the FT
recounts.

OC Oerlikon Corporation AG Pfaeffikon -- http://www.oerlikon.com/
-- is a Swiss company engaged in the industrial sector.  The
Company divides its activities into six segments: Oerlikon
Textile, providing equipment for the textile production; Oerlikon
Coating, offering protective coatings for precision tools and
components; Oerlikon Solar, which provides solutions for the
manufacturing of thin film silicon solar modules; Oerlikon Vacuum,
providing systems for producing vacuums and conveying process
gases; Oerlikon Drive Systems, which offers propulsion technology,
and Oerlikon Advanced Technologies, providing aerospace and
production systems for nanotechnology applications.  The Company's
solutions are used in a range of industries, including the solar
energy, clean technologies, automotive, information technology
(IT), textile, machinery and tool manufacturing industry, as well
as in the process, space and advanced nanotechnology applications.
The Company operates worldwide through 180 sites in 37 countries.


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


ARCELIK AS: Fitch Gives Positive Outlook; Affirms 'BB-' Ratings
---------------------------------------------------------------
Fitch Ratings has revised the Outlooks on Arcelik A.S.'s Long-term
Issuer Default Ratings to Positive from Negative, while affirming
the company's Long-term foreign and local currency IDRs at 'BB-'
respectively.  Fitch has also affirmed Arcelik's National Long-
term rating at 'AA-(tur)'.  The Outlook on the National rating is
revised to Stable from Negative.

The outlook revision reflects the significant improvement in the
company's operating and financial profile in 2009 despite Fitch's
forecast that Turkey's 2009 GDP will contract 6%, and the economic
downturns in most of Arcelik's export markets.  Arcelik's YTD
September 2009 results marked a turnaround, with the company
generating positive free cash flow during the period due to a
major reversal in working capital, no dividend distribution and
large reductions in capex in some of its business lines.  Arcelik
has deleveraged significantly from peak leverage (5.1x at FY08) to
a moderate 2x at 9M09 on an annualized basis in a challenging
market environment and amid weak consumer confidence.

Based on Fitch forecasts, sustainable net leverage (net
debt/EBITDA) will remain above 3.0x during 2010 and 2011 versus
Arcelik management's expectation of substantially lower leverage
metrics as the agency expects a return to normalized levels of
working capital in 2010.  Therefore, further deleveraging is
likely to be challenging in 2010 and beyond, but more evidence on
the long-term sustainability of lower working capital needs and
improved credit metrics would be positive for Arcelik's ratings.
In particular, actual or expected leverage below 3x and funds from
operations (FFO) interest coverage above 2.5x on average through
the cycle could trigger a positive rating action.

Arcelik has been efficient in reducing net debt due to the
improvement in working capital, which in turn reflects its better
inventory management.  The company registered a working capital-
to-sales ratio of 38% at 9M09 compared with 47% at YE08.

The company raised TRY500 million in cash during H109 through a
financial asset disposal and a rights issue, both of which were
backed by its majority shareholder, Koc Holding (TRY250 million
rights issue plus TRY250 million from the sale of its stake in
KFS).  Fitch notes the various positive initiatives undertaken by
the company to conserve cash, notably the board's recommendation
not to pay dividends in 2009, and the reduction in annual capex to
maintenance levels only.

Arcelik's EBITDA margin increased to 13.4% at 9M09, which is well
above management's stated target of 10-11%.  Efficient inventory
management, lower raw material prices (mainly steel) and higher
capacity utilization supported operating margins in 2009.
However, Fitch remains concerned that Arcelik will continue to
finance a major part of its growing trade receivables with debt
due to its existing business model.

Arcelik's gross debt decreased to TRY2,444 million at 9M09 from
TRY3,492 million at end-2008.  Of the TRY2,444 million of gross
debt, TRY2,175 million (90% of the total) was due within one year,
indicating a shortening in Arcelik's debt maturity profile at face
value.  Fitch notes that half of Arcelik's revenues and around 30%
of gross debt are foreign exchange-denominated.  Fitch also notes
that Arcelik's trade receivables have a major impact on the gross
debt stock, as part of the short-term debt is intended to finance
the trade receivables.  This significant liability increases the
company's refinancing risk, although Fitch notes that a large part
of this debt is secured.  On a positive note, the company's cash
position has improved markedly to TRY955 million at 9M09 from
TRY338 million at 9M08.

Arcelik is Turkey's largest household appliances manufacturer.  It
produced 10 million units of white goods and 2.8 million TV sets
and reported TRY6.8 billion in consolidated sales in FY08.  The
company is 57%-owned by Koc Group of Turkey, while 23% of its
shares are quoted on the Istanbul Stock Exchange.


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


* UKRAINE: Mulls Sale of Up to US$1 Bln Eurobonds Next Year
-----------------------------------------------------------
Halia Pavliva at Bloomberg News reports that Ukraine's Economy
Minister Bohdan Danylyshyn said that the country will seek to
borrow US$500 million to US$1 billion by selling Eurobonds as
early as next quarter as it looks for ways to restructure its
debt.

"We have been analyzing the whole debt system," Bloomberg quoted
Mr. Danylyshyn as saying in an interview in Kiev Wednesday.  "We
are in talks with potential participants of the restructuring from
the European Union, the U.S. and Japan."

Bloomberg notes Mr. Danylyshyn said while the government is
considering different currencies for the sale, he thinks the bonds
should be denominated in euros.

The cost to insure against nonpayment by Ukraine using credit-
default swaps is the world's third highest, behind Venezuela and
Argentina, Bloomberg discloses.  Ukraine's five-year default swaps
have dropped to 910 basis points from a record 5,384 basis points
in March, Bloomberg recalls.  This compares to 483 basis points
for Latvia and 179 basis points for Russia, Bloomberg data show.


* UKRAINIAN CITY OF LVIY: S&P Downgrades Issuer Ratings to 'SD'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered
its long-term issuer credit and Ukraine national scale ratings
on the Ukrainian City of Lviv to 'SD' (selective default)
following the city's default on a small coupon payment.  S&P
also lowered the senior unsecured debt ratings on the Ukrainian
hryvnia (UAH) 92 million bond tranche A due July 20, 2012, and
tranche B due Dec. 19, 2012, to 'D'.  The city defaulted on the
tranche A coupon.

Standard & Poor's then raised the issuer credit and national scale
ratings to 'CCC+/uaBB', and the bond ratings back to 'CCC+/uaBB',
because the necessary funds due were transferred.  The outlook is
negative.

"The ratings reflect the very unsupportive and centralized nature
of the Ukrainian system of interbudgetary relations," said
Standard & Poor's credit analyst Boris Kopeykin.

The central government effectively controls local and regional
governments' budget execution as revenues come into and
expenditures are made from the LRGs' accounts in the central-
government treasury.

On Jan. 19, 2010, Lviv requested that the treasury transfer money
to make a coupon payment due on Friday Jan. 22.  However, the
treasury didn't make the payment on time.  Given the two-business-
day grace period, the city defaulted on Jan. 26.  After the
mayor's request to the central government, the treasury
transferred the funds to the paying agent, who received them on
Jan. 27.  According to the city all the bondholders received the
coupon payment on Jan. 27.

Based on S&P's understanding, this delay was caused by technical
difficulties, and S&P don't expect such a situation involving
interest payments to be repeated in the future with respect to
Lviv or any of its rated Ukrainian peers.  However, Ukrainian LRGs
dependence on the treasury system will likely prevent us from
rating any Ukrainian LRG above the sovereign under any
circumstances in the future.

The ratings on Lviv continue to reflect those on Ukraine (foreign
currency CCC+/Stable/C; local currency B-/Stable/C; Ukraine
national scale 'uaBBB').  The ratings also factor in Lviv's low
financial flexibility and financial uncertainty arising from its
commitment to upgrade its infrastructure to host several of the
Union of European Football Associations' championship matches to
be held in Ukraine and Poland in 2012 (EURO 2012), which is
causing persistent high expenditure needs and has already resulted
in some debt accumulation to finance related projects.  The
country's economic slowdown, with weaker revenue collection, and
the city's weak liquidity position also constrain the ratings.

These negatives are offset by Lviv's importance as one of western
Ukraine's commercial centers, with a relatively strong and
diversified economy in the national context, and ongoing central-
government support to the city in expectation of its hosting the
EURO 2012.

"The negative outlook reflects the probability that the city's
debt policy might be aggressive in 2010-2011, leading to faster
debt accumulation to finance the EURO 2012 preparations, and
result in higher debt service," said Mr. Kopeykin.

It also reflects the city's dependence on central-government
decisions on its revenue and expenditure responsibilities,
particularly on transfers, as well as decisions on salaries in the
public sector.  It also incorporates S&P's assumption of continued
expenditure and liquidity pressures in 2010-2011.

S&P might lower the ratings if the city's liquidity position
deteriorates further, either due to weaker revenue collection, or
if the city's new borrowings result in large foreign currency
risks or excessive debt service over the next 12-36 months.  In
addition, negative rating actions on Ukraine or continued
difficulties with the treasury system could result in negative
actions on Lviv.


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


CRYSTAL PALACE: Deducted 10 Points Following Administration
-----------------------------------------------------------
Bob Bensch at Bloomberg News reports that Crystal Palace was
docked 10 points by England's Football League after being placed
in administration on Jan. 27.

"Following receipt of formal confirmation that Crystal Palace
Football Club has gone into administration, the Football League
can confirm that a sporting sanction of 10 points will apply with
immediate effect," Bloomberg quoted the Football League as saying
in a statement on its Web site.

According to Bloomberg, the deduction drops Palace to 21st place
from ninth place in the Championship with 27 points, three above
the bottom three relegation zone.

As reported by the Troubled Company Reporter-Europe on Jan. 28,
2010, Crystal Palace went into administration after running into
financial problems.  The Times disclosed the club 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 on Jan. 27, the Times said.  The Times
recalled 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 call was made by Agilo Ltd., a Cayman
Islands-registered company from whom Jordan is believed to have
borrowed GBP5 million, according to the Times.  The Times related
Brendon Guilfoyle, Chris White and John Russell, of the P & A
Partnership, have been appointed administrators.  They will
attempt to find a buyer, the Times states.  There are understood
to be interested parties, but Mr. Guilfoyle made it plain that he
would sell players to raise money if possible, the Times noted.

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.


DIGITAL PAGE: High Court Orders Liquidation
-------------------------------------------
In a notice published on January 28, 2010, in the Belfast
Telegraph, the official receiver of Digital Page Limited said that
on January 21, 2010, the High Court of Justice in Northern Ireland
ordered the winding up of the company.

The registered office of the company is at:

         23-25 Queen Street
         Coleraine
         BT52 1BG
         Northern Ireland


FLAMELILY FLOWERS: High Court Orders Liquidation
------------------------------------------------
In a notice published on January 28, 2010, in the Belfast
Telegraph, the official receiver of Flamelily Flowers Limited said
that on January 21, 2010, the High Court of Justice in Northern
Ireland ordered the winding up of the company.

The registered office of the company is at:

         99 Meadow Bank
         Lurgan Road
         Seapatrick
         Banbridge
         BT32 4PZ
         Northern Ireland


FRANK GALLIERS: Goes Into Administration
----------------------------------------
Advertizer reports that the Shropshire Council said Frank
Galliers, the firm constructing Oswestry's GBP7.9 million Oswald
Park project, has gone into administration.

"Work is currently halted and the site has been made secure while
the council reviews the situation and its options," the report
quoted Laura Rowley, Director of Resources at Shropshire Council,
as saying.  "The council is committed to completing the two
projects being undertaken by the company -- the new leisure centre
in Oswestry and the refurbishment of Market Drayton market hall --
and are taking the necessary steps to ensure this happens."

Based Shrewsbury, Frank Galliers is one of the West Midlands'
largest construction companies, employing 138 people.


GATHERING 2009: Goes Into Administration
----------------------------------------
BBC News reports that Gathering 2009 Ltd., the company behind the
centerpiece of last year's Homecoming celebrations, has gone into
administration.

According to the report, the firm owes about GBP300,000 to 50
companies in Edinburgh.

The event is said to have generated more than GBP10 million for
the Scots economy, the report notes.  The Gathering attracted
47,000 people from at least 40 countries, the report discloses.

According to the report, the Scottish government agreed to
GBP300,000 bail-out to cover costs such as policing and it had
been hoped Edinburgh City Council would pay the other GBP300,000.


J&G ENGINEERING: Appoints D.W.J. McClean as Liquidator
------------------------------------------------------
D.W.J. McClean of Moore Stephens was appointed liquidator of J&G
Engineering (NI) Ltd. by the creditors on January 26, 2010.

The creditors of the company are required on or before April 30,
2010, to send their names and addresses and particulars of their
debt and claims to the liquidator and if so required by him, to
come in and prove their debt and claims at such time and place as
shall be specified in such notice.

The liquidator can be reached at:

         Moore Stephens
         Chartered Accountants
         Donegall House
         7 Donegall Square North
         Belfast
         BT1 5GB
         Northern Ireland


NORTHWEST ENVIRONMENTAL: High Court Orders Liquidation
------------------------------------------------------
In a notice published on January 28, 2010, in the Belfast
Telegraph, the official receiver of Northwest Environmental (NI)
Limited said that on January 21, 2010, the High Court of Justice
in Northern Ireland ordered the winding up of the company.

The registered office of the company is at:

         59 Bonds Glen Road
         Killaloo
         Londonderry
         BT47 7ST
         Nothern Ireland


RM CABLES: Appoints D.W.J. McClean as Liquidator
------------------------------------------------
D.W.J. McClean of Moore Stephens was appointed liquidator of RM
Cables Ltd. by the creditors on January 25, 2010.

The creditors of the company are required on or before April 30,
2010, to send their names and addresses and particulars of their
debt and claims to the liquidator and if so required by him, to
come in and prove their debt and claims at such time and place as
shall be specified in such notice.

The liquidator can be reached at:

         Moore Stephens
         Chartered Accountants
         Donegall House
         7 Donegall Square North
         Belfast
         BT1 5GB
         Northern Ireland


SHIV DISTRIBUTION: High Court Orders Liquidation
------------------------------------------------
In a notice published on January 28, 2010, in the Belfast
Telegraph, the official receiver of Shiv Distribution Limited said
that on January 21, 2010, the High Court of Justice in Northern
Ireland ordered the winding up of the company.

The registered office of the company is at:

         Unit 8c
         Campsie Industrial Estate
         Londonderry
         BT47 6XX
         Northern Ireland


WINDYRIDGE INVESTMENTS: High Court Orders Liquidation
-----------------------------------------------------
In a notice published on January 28, 2010, in the Belfast
Telegraph, the official receiver of Windyridge Investments Limited
said that on January 21, 2010, the High Court of Justice in
Northern Ireland ordered the winding up of the company.

The registered office of the company is at:

         Savoy House
         1st Floor
         16 West Street
         Portadown
         BT62 3PD
         Northern Ireland


* UK: Acquisitions of Insolvent Businesses Remain High, R3 Says
---------------------------------------------------------------
Acquisitions of insolvent businesses in the UK have more than
doubled over the past year and remain at high levels, according to
research into mergers and acquisitions by Experian Corpfin on
behalf of insolvency trade body R3.

During the fourth quarter of 2009, 67 out of the 630 deals
completed in the UK -- one in nine of all deals -- involved
companies acquired out of administration or other formal
insolvency procedures.

During the year as a whole, there were 345 acquisitions of
distressed businesses, amounting to one in every eight mergers and
acquisitions.  This compares to 2008 when there were 159
distressed acquisitions, accounting for one in 27 mergers and
acquisitions.

Peter Sargent, R3 President said: Acquisitions of insolvent
businesses have risen significantly and remain high.  While
pre-pack administrations may account for some of these deals,
others will be acquisitions by canny buyers taking the opportunity
to pick up bargains while values are low.  Either way, these
statistics represent businesses being given a second chance of
survival.

R3 is the trade body for Insolvency Professionals, and is made up
of 97% of the UK's Insolvency Practitioners from all over the UK.


* UK: At Mid-Point of W-shaped Recession, Phillips & Co Says
------------------------------------------------------------
Evidence is mounting that the UK may be at the mid-point of a
W-shaped recession, insolvency specialists Phillips & Co. are
warning.

Helen Phillips, partner at the Buckinghamshire-based firm, says
"although the number of companies that failed 2009 fell by 2%
compared to 2008, we can expect a substantial rise in corporate
insolvencies due during 2010 and 2011."

"A similar scenario has been seen previous recessions, and
statistics confirm that insolvencies peak one to two years after
GDP stops shrinking," Ms. Phillips said.

Around 134,000 companies showing material signs of financial
distress in the third quarter and 215,000 firms deferring payment
of 3.79 billion in tax liabilities through the Business Payment
Support Service, which is likely to stop relatively soon.  Now is
not the time for companies to rest on their laurels, Phillips &
Co. said.

Phillips & Co., who are licensed insolvency practitioners, say the
best way to avoid financial disaster is to spot the warning signs
early and ask for expert advice straight away, as this can mean
the difference between staying in business and an uncertain
future.


* UK: Outdated Fin'l Records Could Prolong Financial Instability
----------------------------------------------------------------
npower warns that despite evidence showing the UK economy is now
out of recession, out of date financial records could prolong
financial instability for many UK businesses.  This is likely to
impact credit ratings, reducing businesses access to finance and
essential supplies, like energy.

Companies House records can be anything from 12 to 18 months out
of date, which means that a company's financial viability will be
judged on its performance mid-recession, irrespective of how well
it is doing now.  Major credit rating agencies typically use these
statutory accounts to assess financial health and, despite the
scale of the problem, a large number of businesses have a lack of
understanding on how their credit rating can impact their
business.

Wayne Mitchell, head of corporate sales at npower, explained:
"Poor credit ratings mean insurance companies are withdrawing
credit insurance for businesses, a necessary guarantee that allows
them to negotiate contracts with suppliers.  This is impacting
businesses access to essential supplies like energy and in the
worst cases, could lead to tighter payment terms, restricted
forward purchasing and even security deposits.  In 2009 more than
GBP100 million worth of insurance was withdrawn for our business
customers and we predict it will continue to be an issue for many
businesses in 2010.

"That is why we are calling on businesses, energy suppliers and
credit insurers to work together to avoid a credit crisis and
prevent businesses facing challenges in securing energy supplies.
There needs to be open dialogue and information sharing so that
financial decisions are based on real-time data and are not solely
reliant on the information held by Companies House."

npower is also working closely with the Major Energy Users Council
(MEUC) to reach businesses and bring to their attention the
importance of carefully managing credit insurance.

Andrew Buckley, chief executive at the MEUC said: "This is a major
issue for our members and we want to help them avoid any
difficulty in negotiating energy contracts due to statutory
accounts that bear no resemblance to their current situation.

"We believe that increased openness is the only way forward to
ensure that suppliers and credit insurers have the full picture
before making decisions about a business's financial health.
Everyone needs to work together to ensure that out-dated credit
ratings do not impede the UK's economic recovery."


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


* 20% of European Chemical Capacity at Risk by 2015, KPMG Says
--------------------------------------------------------------
The European chemical industry is set to face serious challenges
over the next five years, with KPMG forecasting that 20% of the
sector's base chemical capacity may become unsustainable by 2015.

With global demand collapsing in the wake of the recession and
increased competition from low-cost suppliers in the Middle East
and China, the European chemical industry is walking uncertainly
into the dawn of a new era for global chemical production.

However, KPMG believes that companies across the sector will now
be forced to take even more severe action by closing unprofitable
facilities which will be impacted by new, more efficient plants
planned to come on stream outside Europe.

Chris Stirling, head of KPMG's chemicals and pharmaceuticals
practice in the UK and Europe, said: "Current forecasts suggest
that globally, there will be a 15% overcapacity in the ethylene
production market by 2015.  As a result, as many as 40 of the 200
ethylene crackers around the world may no longer be economically
sustainable, with 14 of these at risk in Europe.  Closure of these
plants could prove to be straw that breaks the camel's back for
the European industry, particularly when you consider that at
present, the 14 worst ranked plants in Europe account for more
than a quarter of total capacity."

It is believed small naphtha-fed, land-bound units could be most
at risk from closure, while well-integrated LPG-fed coastal units
will be less vulnerable.

Mr. Stirling said: "While this is cause for concern, it's
important to stress however that I don't believe that death knells
are ringing across the European industry just yet.  Remember that
this remains an industry which employs over 1.2 million people and
contributed in 2007 to a European Union trade surplus in chemicals
of EUR35.4 billion.  So, while there's no doubt the shape of the
global industry is changing, there are steps that can be taken to
ensure that European businesses continue to punch their weight on
the worldwide stage."

He explained: "For instance, companies need to make hard honest
choices now to rationalize those unprofitable facilities that
cannot compete with newer, more efficient plants being built
outside Europe and instead, ruthlessly focus resources and
investment on those chemical clusters which do remain competitive.
Additionally, they should also try to capitalize on their historic
advantage in innovation to stay ahead of the competition from the
East, especially in terms of developing sustainable solutions that
will undoubtedly become increasingly in demand over the next few
years."

Mr. Stirling concluded: "Finally, European firms should actively
seek beneficial joint ventures and strategic alliances that
provide access to both cheap Middle Eastern feedstocks and the
burgeoning Asian markets.  While such joint relationships do
involve an element of trade-off, they should very much be seen as
an opportunity to develop a presence in new overseas territories."

                           About KPMG

KPMG is a global network of professional firms providing Audit,
Tax and Advisory services.  The company operates in 144 countries
and has 137,000 people working in member firms around the world.
The independent member firms of the KPMG network are affiliated
with KPMG International, a Swiss cooperative.  Each KPMG firm is a
legally distinct and separate entity and describes itself as such.


* BOND PRICING: For the Week January 25 to January 29, 2010
-----------------------------------------------------------

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

AUSTRIA
-------
KOMMUNALKREDIT        4.440  12/20/2030     EUR   64.50
KOMMUNALKREDIT        4.900   6/23/2031     EUR   67.75
OESTER VOLKSBK        5.270    2/8/2027     EUR   93.48
OESTER VOLKSBK        4.170   7/29/2015     EUR   74.88
OESTER VOLKSBK        4.810   7/29/2025     EUR   74.13
RAIFF ZENTRALBK       4.500   9/28/2035     EUR   89.25

BELGIUM
-------
FORTIS BANK           8.750   12/7/2010     EUR   19.81

BULGARIA
--------
PETROL AD-SOFIA       8.375  10/26/2011     EUR   49.10

CZECH REPUBLIC
--------------
CZECH REPUBLIC        2.750   1/16/2036     JPY   66.41

DENMARK
-------
DANMARK SKIBSKRD      2.000  11/15/2024     DKK   73.12

FINLAND
-------
MUNI FINANCE PLC      1.000  11/21/2016     NZD   70.73
MUNI FINANCE PLC      1.000  10/30/2017     AUD   65.14
MUNI FINANCE PLC      1.000   2/27/2018     AUD   63.99
MUNI FINANCE PLC      0.500   9/24/2020     CAD   60.08
MUNI FINANCE PLC      0.250   6/28/2040     CAD   20.57
MUNI FINANCE PLC      0.500   3/17/2025     CAD   45.35
STORA ENSO OYJ        7.250   4/15/2036     USD   73.92

FRANCE
------
AIR FRANCE-KLM        4.970    4/1/2015     EUR   15.47
ALCATEL SA            4.750    1/1/2011     EUR   16.00
ALCATEL-LUCENT        5.000    1/1/2015     EUR    3.44
ALTRAN TECHNOLOG      6.720    1/1/2015     EUR    5.23
ATARI SA              4.000    4/1/2020     EUR    0.70
ATOS ORIGIN SA        2.500    1/1/2016     EUR   49.84
CALYON                6.000   6/18/2047     EUR   46.51
CAP GEMINI SOGET      3.500    1/1/2014     EUR   41.46
CAP GEMINI SOGET      1.000    1/1/2012     EUR   43.10
CLUB MEDITERRANE      4.375   11/1/2010     EUR   48.40
CMA CGM               5.500   5/16/2012     EUR   66.89
CMA CGM SA            7.250    2/1/2013     USD   65.29
CMA CGM SA            7.250    2/1/2013     USD   65.26
DEXIA MUNI AGNCY      1.000  12/23/2024     EUR   61.67
EURAZEO               6.250   6/10/2014     EUR   56.02
FAURECIA              4.500    1/1/2015     EUR   19.35
GROUPE VIAL           2.500    1/1/2014     EUR   18.49
MAUREL ET PROM        7.125   7/31/2014     EUR   18.36
NEXANS SA             4.000    1/1/2016     EUR   63.69
PEUGEOT SA            4.450    1/1/2016     EUR   31.15
PUBLICIS GROUPE       1.000   1/18/2018     EUR   46.13
PUBLICIS GROUPE       3.125   7/30/2014     EUR   35.60
RHODIA SA             0.500    1/1/2014     EUR   43.24
SOC AIR FRANCE        2.750    4/1/2020     EUR   20.87
SOITEC                6.250    9/9/2014     EUR   11.18
TEM                   4.250    1/1/2015     EUR   55.31
THEOLIA               2.000    1/1/2014     EUR   13.93
VALEO                 2.375    1/1/2011     EUR   46.00
ZLOMREX INT FIN       8.500    2/1/2014     EUR   34.25
ZLOMREX INT FIN       8.500    2/1/2014     EUR   34.25

GERMANY
-------
DEUTSCHE BK LOND      1.000   3/31/2027     USD   45.50
ESCADA AG             7.500    4/1/2012     EUR   16.74
EUROHYPO AG           5.000   5/15/2027     EUR   93.20
HSH NORDBANK AG       4.375   2/14/2017     EUR   68.05
KFW                   5.000  10/17/2035     EUR   73.81
L-BANK FOERDERBK      0.500   5/10/2027     CAD   44.49
LB BADEN-WUERTT       2.500   1/30/2034     EUR   63.12
LB BADEN-WUERTT       5.250  10/20/2015     EUR   34.59
RENTENBANK            1.000   3/29/2017     NZD   69.90
SOLON AG SOLAR        1.375   12/6/2012     EUR   39.61
TUI AG                5.500  11/17/2014     EUR   74.43

GREECE
------
HELLENIC REP I/L      2.300   7/25/2030     EUR   68.14
HELLENIC REPUBLI      4.600   9/20/2040     EUR   74.19
HELLENIC REPUBLI      4.500   9/20/2037     EUR   73.94
YIOULA GLASSWORK      9.000   12/1/2015     EUR   59.02
YIOULA GLASSWORK      9.000   12/1/2015     EUR   58.00

HUNGARY
-------
REP OF HUNGARY        2.110  10/26/2017     JPY   73.15

IRELAND
-------
ALLIED IRISH BKS      5.250   3/10/2025     GBP   64.49
ALLIED IRISH BKS      5.625  11/29/2030     GBP   61.21
BANK OF IRELAND       4.875   1/22/2018     GBP   77.61
DEPFA ACS BANK        4.900   8/24/2035     CAD   61.89
DEPFA ACS BANK        5.125   3/16/2037     USD   75.93
DEPFA ACS BANK        5.125   3/16/2037     USD   75.67
DEPFA ACS BANK        0.500    3/3/2025     CAD   30.10
DEPFA ACS BANK        5.250   3/31/2025     CAD   72.89
IRISH NATIONWIDE     13.000   8/12/2016     GBP   75.40
UT2 FUNDING PLC       5.321   6/30/2016     EUR   66.58

ITALY
-----
COMUNE DI MILANO      4.019   6/29/2035     EUR   74.56
ROMULUS FINANCE       5.441   2/20/2023     GBP   74.25

LUXEMBOURG
----------
ARCELORMITTAL         7.250    4/1/2014     EUR   32.95
BREEZE                4.524   4/19/2027     EUR   84.50
GLOBAL YATIRIM H      9.250   7/31/2012     USD   65.50
HELLAS III            8.500  10/15/2013     EUR   63.50
LIGHTHOUSE INTL       8.000   4/30/2014     EUR   65.13
LIGHTHOUSE INTL       8.000   4/30/2014     EUR   64.69

NETHERLANDS
-----------
ABN AMRO BANK NV      7.540   6/29/2035     EUR   66.10
AI FINANCE B.V.      10.875   7/15/2012     USD   61.13
AIR BERLIN FINAN      1.500   4/11/2027     EUR   74.26
ALB FINANCE BV        7.875    2/1/2012     EUR   35.77
ALB FINANCE BV        8.750   4/20/2011     USD   35.48
ALB FINANCE BV        9.000  11/22/2010     USD   35.49
ALB FINANCE BV        9.250   9/25/2013     USD   35.53
ARPENI PR INVEST      8.750    5/3/2013     USD   55.25
ARPENI PR INVEST      8.750    5/3/2013     USD   55.25
ASTANA FINANCE        9.000  11/16/2011     USD   25.97
BK NED GEMEENTEN      0.500   6/27/2018     CAD   71.98
BK NED GEMEENTEN      0.500   2/24/2025     CAD   48.94
BLT FINANCE BV        7.500   5/15/2014     USD   67.75
BLT FINANCE BV        7.500   5/15/2014     USD   67.75
BRIT INSURANCE        6.625   12/9/2030     GBP   73.03
CRR BV               10.000   6/19/2011     USD    9.99
ELEC DE CAR FIN       8.500   4/10/2018     USD   68.50
EM.TV FINANCE BV      5.250    5/8/2013     EUR    4.50
IVG FINANCE BV        1.750   3/29/2017     EUR   66.79
NATL INVESTER BK     25.983    5/7/2029     EUR   36.35
NED WATERSCHAPBK      0.500   3/11/2025     CAD   47.72
Q-CELLS INTERNAT      1.375   2/28/2012     EUR   63.98
Q-CELLS INTERNAT      5.750   5/26/2014     EUR   65.94
TEMIR CAPITAL         9.000  11/24/2011     USD   17.75
TEMIR CAPITAL         9.500   5/21/2014     USD   28.00
TEMIR CAPITAL         9.500   5/21/2014     USD   27.88
TJIWI KIMIA FIN      13.250    8/1/2001     USD    0.01
TURANALEM FIN BV      8.500   2/10/2015     USD   40.84
TURANALEM FIN BV      7.125  12/21/2009     GBP   39.17
TURANALEM FIN BV      7.875    6/2/2010     USD   40.74
TURANALEM FIN BV      6.250   9/27/2011     EUR   40.72
TURANALEM FIN BV      7.750   4/25/2013     USD   40.74
TURANALEM FIN BV      8.000   3/24/2014     USD   41.00
TURANALEM FIN BV      8.250   1/22/2037     USD   40.90
TURANALEM FIN BV      8.250   1/22/2037     USD   41.08

NORWAY
------
EKSPORTFINANS         0.500    5/9/2030     CAD   38.13
NORSKE SKOGIND        7.000   6/26/2017     EUR   66.43

POLAND
------
POLAND GOVT BOND      3.300   6/16/2038     JPY   71.56
POLAND-REGD-RSTA      2.810  11/16/2037     JPY   67.01
REP OF POLAND         2.648   3/29/2034     JPY   64.68
REP OF POLAND         3.220    8/4/2034     JPY   73.69
REP OF POLAND         2.620  11/13/2026     JPY   72.38

RUSSIA
------
VOLGATELECOM         12.000    9/3/2013     RUB    1.00

SPAIN
-----
BANCAJA EMI SA        2.755   5/11/2037     JPY   66.84
GENERAL DE ALQUI      2.750   8/20/2012     EUR   57.15
MINICENTRALES         4.810  11/29/2034     EUR   64.41

SWEDEN
------
SWEDISH EXP CRED      0.500  12/17/2027     USD   49.15

SWITZERLAND
-----------
CYTOS BIOTECH         2.875   2/20/2012     CHF   49.37
UBS AG JERSEY         9.000   8/13/2010     USD   61.65
UBS AG JERSEY         9.500   8/31/2010     USD   63.45
UBS AG JERSEY        10.000  10/25/2010     USD   63.75
UBS AG JERSEY        13.900   1/31/2011     USD   36.71
UBS AG JERSEY        14.640   1/31/2011     USD   38.95
UBS AG JERSEY        16.170   1/31/2011     USD   13.90
UBS AG JERSEY        10.000   2/11/2011     USD   61.28
UBS AG JERSEY        15.250   2/11/2011     USD   12.48
UBS AG JERSEY         8.250   2/28/2011     USD   69.79
UBS AG JERSEY        12.800   2/28/2011     USD   35.28
UBS AG JERSEY        11.330   3/18/2011     USD   18.29
UBS AG JERSEY        11.400   3/18/2011     USD   25.81
UBS AG JERSEY        10.990   3/31/2011     USD   30.98
UBS AG JERSEY        16.160   3/31/2011     USD   45.72
UBS AG JERSEY        10.820   4/21/2011     USD   22.33
UBS AG JERSEY         3.220   7/31/2012     EUR   60.12
UBS AG JERSEY         9.350   9/21/2011     USD   68.90
UBS AG JERSEY        11.150   8/31/2011     USD   38.76
UBS AG JERSEY        10.360   8/19/2011     USD   52.79
UBS AG JERSEY        10.280   8/19/2011     USD   33.99
UBS AG JERSEY        13.000   6/16/2011     USD   50.53
UBS AG JERSEY        10.650   4/29/2011     USD   16.35
UBS AG JERSEY        11.030   4/21/2011     USD   21.54
UBS AG JERSEY         9.000    3/9/2010     USD   58.38
UBS AG JERSEY         9.000   5/18/2010     USD   58.09
UBS AG JERSEY         9.000   6/11/2010     USD   56.74
UBS AG JERSEY         9.000    7/2/2010     USD   57.20
UBS AG JERSEY         9.000   7/19/2010     USD   56.95
UBS AG JERSEY         9.350   7/27/2010     USD   57.60

UNITED KINGDOM
--------------
ALPHA CREDIT GRP      2.940    3/4/2035     JPY   72.10
BARCLAYS BK PLC      10.350   1/23/2012     USD   25.77
BARCLAYS BK PLC      10.600   7/21/2011     USD   42.40
BARCLAYS BK PLC       8.550   1/23/2012     USD   10.80
BARCLAYS BK PLC       7.610   6/30/2011     USD   54.33
BARCLAYS BK PLC      11.650   5/20/2010     USD   41.13
BRADFORD&BIN BLD      5.750  12/12/2022     GBP   20.56
BRADFORD&BIN BLD      2.875  10/16/2031     CHF   74.04
BRADFORD&BIN PLC      6.625   6/16/2023     GBP   14.95
CO-OPERATIVE BNK      5.875   3/28/2033     GBP   76.96
EFG HELLAS PLC        2.760   5/11/2035     JPY   68.00
ENTERPRISE INNS       6.375   9/26/2031     GBP   76.67
ENTERPRISE INNS       6.500   12/6/2018     GBP   86.85
F&C ASSET MNGMT       6.750  12/20/2026     GBP   67.69
GREENE KING FIN       5.702  12/15/2034     GBP   72.73
HBOS PLC              4.500   3/18/2030     EUR   71.19
INEOS GRP HLDG        8.500   2/15/2016     USD   67.02
INEOS GRP HLDG        8.500   2/15/2016     USD   68.35
INEOS GRP HLDG        7.875   2/15/2016     EUR   68.03
INEOS GRP HLDG        7.875   2/15/2016     EUR   67.13
MARSTONS ISSUER       5.641   7/15/2035     GBP   73.88
NATL GRID GAS         1.754  10/17/2036     GBP   48.04
NATL GRID GAS         1.771   3/30/2037     GBP   46.61
NBG FINANCE PLC       2.755   6/28/2035     JPY   68.08
NOMURA BANK INTL      0.800  12/21/2020     EUR   61.41
NORTHERN ROCK         9.375  10/17/2021     GBP   61.28
NORTHERN ROCK         5.750   2/28/2017     GBP   52.92
OJSC BANK NADRA       9.250   6/28/2010     USD   15.00
PARAGON GROUP         7.000   4/20/2017     GBP   74.50
PRINCIPALITY BLD      5.375    7/8/2016     GBP   64.40
PRIVATBANK            8.750    2/9/2016     USD   75.42
SPIRIT ISSUER         5.472  12/28/2028     GBP   72.24
TXU EASTERN FNDG      6.450   5/15/2005     USD    2.00
UNIQUE PUB FIN        6.464   3/30/2032     GBP   60.73
UNIQUE PUB FIN        7.395   3/28/2024     GBP   75.23
WESSEX WATER FIN      1.369   7/31/2057     GBP   21.76


                            *********

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 * * *