/raid1/www/Hosts/bankrupt/TCREUR_Public/100607.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, June 7, 2010, Vol. 11, No. 110
Headlines
A R M E N I A
UNIBANK CJSC: Moody's Puts Ba3 Global Local Cur. Deposit Ratings
D E N M A R K
TDC AS: Abandons France Telecom Swiss Operations Merger Plan
F R A N C E
LE MONDE: In Search of New Investors; Needs to Recapitalize
G E R M A N Y
ARCANDOR AG: Artur Pakhomov's Chances to Buy for Karstadt Fade
H U N G A R Y
NEPSZAVA LAPKIADO: Magyar Initiates Liquidation Procedure
I R E L A N D
ANGLO IRISH: Full Access to Documents in Scandal Probe Sought
EBS BUILDING: Moody's Cuts Ratings on Tier 1 Instruments to 'Ca'
ELAN CORP: CEO Kelly Martin to Step Down in Two Years
I T A L Y
IT HOLDING: Gets Four Offers for Malo Cashmere Brand
N E T H E R L A N D S
NIELSEN COMPANY: Mulls US$1.75BB NYSE Float to Cut Debt Pile
R O M A N I A
DAEWOO SHIPBUILDING: Romanian Unit May Receive Loan Guarantee
RCS & RDS: S&P Affirms Long-Term Corporate Credit Rating at 'B'
R U S S I A
LOCKO-BANK: Fitch Upgrades LT Issuer Default Ratings to B+ From B
CREDIT BANK: Fitch Lifts LT Issuer Default Ratings to B+ From 'B'
ROSEVROBANK: Fitch Lifts LT Issuer Default Ratings to B+ From 'B'
S L O V E N I A
ABANKA VIPA: Moody's Affirms 'D+' BFSR; Outlook Negative
NOVA KREDITNA: Moody's Puts 'D+' BFSR on Review for Downgrade
S P A I N
* SPAIN: Banks Scale Back Lending Amid Rising Defaults
U N I T E D K I N G D O M
BEST PROFILE: Bought Out of Administration by Directors
BRITISH AIRWAYS: May Passenger Numbers Down 14.2% Due to Strikes
BROOKLANDS EURO: S&P Lifts Ratings on 3 Classes of Notes to CCC-
CORBETT'S BOOKSHOPS: Goes Into Administration
LADBROKES PLC: Barred From Offering Online Gaming in Netherlands
ROYAL BANK: NAB Drops Out of Bidding Race for 318 Branches
VANTIS PLC: Seeks to Reduce Debts; In Sale, Restructuring Talks
VERGO RETAIL: MCR Completes Sale of Robbs Department Store
VICTORIA FUNDING: Moody's Junks Rating on Class E Notes From B1
WINE TRADERS: Wound Up Following Insolvency Service Probe
WOODS OF PERTH: Axes 57 Jobs Following Administration
* UK: Print Industry Fourth Hardest-Hit Sector, Report Shows
* UK: Small Businesses Fear Insolvency Over Interest Rate Hike
X X X X X X X X
* EUROPE: EU-Sponsored Credit Rating Firm to Face Challenges
* S&P Downgrades Ratings on Seven Tranches of European CDOs
* BOND PRICING: For the Week May 24 to May 28, 2010
*********
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A R M E N I A
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UNIBANK CJSC: Moody's Puts Ba3 Global Local Cur. Deposit Ratings
----------------------------------------------------------------
Moody's Investors Service has assigned a bank financial strength
rating of E+ to Armenia's Unibank CJSC, as well as Ba3 long-term
and Not-Prime short-term global local currency deposit ratings and
Ba3 long-term and Not-Prime short-term foreign currency deposit
ratings. The outlook on all ratings is stable.
"The ratings take into account the bank's good franchise strength,
which is enhanced by the exclusive right to operate the Unistream
money transfer system, representing a 50% stake of the lucrative
money transfer business in Armenia," said Stathis Kyriakides, AVP-
Analyst and lead analyst for Armenian banks at Moody's office in
Limassol. The system is the proprietorship of the Russian
Unistream bank, majority owned by Unibank's ultimate beneficial
owners. Given that remittances constitute 20% of Armenia's GDP,
Moody's believes that the success of the Unistream system in
penetrating the Armenian market enhances Unibank's franchise value
and brand awareness. The bank's dominant presence in the money
transfer business affords it good access to primary deposits and
offers cross-selling opportunities.
The bank exhibits good capitalization ratios following successive
capital injections (the most recent in March 2010) which enables
it to withstand some deterioration in asset quality.
Concurrently, the bank's E+ BFSR -- which maps to a Baseline
Credit Assessment of B1 -- also reflects the numerous challenges
the bank faces, including: (i) the material credit risk arising
from excessive single-party exposures; (ii) the potential for
upward pressure on problems loans (currently reported to be at
good levels) as restructured loans become seasoned; (iii) the
narrowing net interest margins reflecting both price competition
on customer deposits that are core to the bank's funding structure
as well as intensifying competition on customer lending; (iv) the
need to improve operating efficiency; (v) the need to further
enhance its technological infrastructure as well as its risk
management practices; and (vi) its exposure to Armenia's
undiversified domestic economy as well as to the landlocked
country's domestic and regional political risk.
Unibank's long-term global local currency deposit rating of Ba3 is
based on Moody's assessment of moderate probability of systemic
support, based on Armenia's Ba1 systemic support indicator, in the
event of need. The GLC deposit rating therefore benefits from a
one-notch uplift from the B1 BCA. The bank's long-term foreign
currency deposit rating is also positioned at Ba3, unconstrained
by Armenia's foreign currency deposit ceiling. Both local- and
foreign-currency short-term deposit ratings are rated Not-Prime.
Headquartered in Yerevan, Armenia, Unibank reported total assets
of AMD108 billion (US$288 million) as at December 2009.
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D E N M A R K
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TDC AS: Abandons France Telecom Swiss Operations Merger Plan
------------------------------------------------------------
Ben Hall at The Financial Times reports that France Telecom and
TDC of Denmark on Thursday abandoned plans to merge their Swiss
mobile operations, a setback that could hamper a large share sale
by the Danish group.
The FT recalls the two companies had lodged an appeal against a
decision by the Swiss regulator last month to block the deal and
were prepared to consider changes to get the merger approved
should the appeal fail. According to the FT, in a statement the
two companies said that they had "concluded a detailed analysis of
their available options and, as a consequence hereof, terminated
their agreement concerning the proposed business combination."
The FT notes TDC delayed a large share sale until later this year
after the Swiss regulator's decision disrupted its strategy of
disposing of its non-Nordic assets, of which Sunrise, its Swiss
unit, is the last.
TDC A/S -- http://www.tdc.com/-- is a Denmark-based provider of
telecommunications solutions. The Company's activities comprise
seven business segments. The Nordic segment provides
telecommunications solutions, such as data communications and
Internet services, to business customers in Scandinavian
countries. The Private segment offers mobile and landline
services to residential and small office/home office (SoHo)
customers in Denmark. The Business segment offers
telecommunications solutions for small, medium and large business
customers in the public sector in Denmark. The YouSee segment is
a Danish provider of cable television, broadband and telephony.
The Sunrise segment is a telecommunications provider in
Switzerland offering mobile and landline telephony, as well as
Internet services. The Operations & Wholesale segment provides
network-based services to Private and Business Segments, as well
as wholesale customers in Denmark. The Headquarters segment is
responsible for corporate functions of the Company.
* * *
As reported by the Troubled Company Reporter-Europe on April 26,
2010, Fitch Ratings said that the announcement of the Swiss
competition commission's decision to block the proposed merger of
Sunrise and Orange Switzerland does not have any impact on the
ratings of Denmark-based TDC A/S ('BB'/Positive). TDC had agreed
with France Telecom ('A-'/Stable) to a partial sale and merger of
its Swiss asset Sunrise with France Telecom's Orange Switzerland.
Fitch said TDC's Long-term Issuer Default Rating of 'BB' is
supported by its defensible incumbent position in Denmark, albeit
with limited geographical diversification following the piecemeal
divestments of the majority of its international portfolio. The
Positive Outlook reflects an overall positive trend in free cash
flows (FCF) generation and debt reduction, which could result in
an upgrade to 'BB+' as the company continues to de-leverage.
According to Fitch, TDC exhibits high financial leverage compared
with other European incumbent telecoms companies, with end-2009
funds from operations -adjusted leverage of 4.3x and net
debt/EBITDA of 3.2x (at consolidating entity NTC Administration
ApS level).
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F R A N C E
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LE MONDE: In Search of New Investors; Needs to Recapitalize
-----------------------------------------------------------
Ben Hall at The Financial Times reports that Le Monde is in a race
against time to find new investors and faces insolvency by the end
of July if it fails to recapitalize.
According to the FT, there are five potential buyers: Prisa, A
Spanish media group that already owns a 15% stake but has its own
financial difficulties; France's Le Nouvel Observateur magazine;
L'Espresso, the Italian publisher; Ringier, the Swiss media group;
and a colorful consortium formed by Matthieu Pigasse, a Lazard
banker who recently bought cultural magazine Les Inrockuptibles,
Pierre Berge, business partner of the late Yves Saint Laurent, and
Xavier Niel, the telecoms billionaire.
None has so far made a formal offer, although the Pigasse-Berge-
Niel consortium appears to be the frontrunner, the FT notes.
The FT relates Gilles Van Kote, head of Le Monde's journalists'
association, the main shareholder, said bidders would be expected
to invest between EUR60 million and EUR100 million in the cash-
strapped newspaper group and offer guarantees of editorial
independence in return for the takeover. Le Monde also has debts
of EUR100 million (US$121.9 million), the FT says.
The staff members of Le Monde are due to vote on ending their
autonomy as the price of an urgent recapitalization at a meeting
on Thursday, June 10, the FT discloses. Le Monde shareholders are
supposed to choose a new owner a few days later, the FT states.
The lack of formal offers means both meetings could be delayed,
the FT notes. Failure to recapitalize could leave the newspaper
without enough cash to pay its staff this summer, the FT says.
As reported by the Troubled Company Reporter-Europe on June 4,
2010, Mr. Van Kote, as cited by The Times, said a takeover is
inevitable, with the daily losing EUR25 million (GBP21 million)
last year, the 10th year in a row it has been in the red amid a
deepening crisis for the whole of France's national press. The
Times disclosed with sales of EUR397 million, the group has debts
of EUR125 million, including EUR25 million that has to be repaid
to BNP Paribas, the bank, next year.
Le Monde is a French newspaper.
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G E R M A N Y
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ARCANDOR AG: Artur Pakhomov's Chances to Buy for Karstadt Fade
--------------------------------------------------------------
Nicholas Comfort at Bloomberg News reports that Die Welt, citing
an unidentified spokesman for Klaus Hubert Goerg, the insolvency
administrator of Arcandor AG's Karstadt department-store chain,
said that Russian investor Artur Pakhomov's chances of buying the
unit have faded as he hasn't answered questions from creditors.
As reported by the Troubled Company Reporter-Europe on June 1,
2010, Reuters, citing Germany's Der Spiegel magazine, said that on
May 28 that St. Petersburg, Russia-based businessman Artur
Pakhomov had made an offer in the mid-double-digit million euro
range to buy the entirety of Karstadt. According to Reuters, the
magazine, which did not cite its sources, said Mr. Pakhomov was
willing to finance Karstadt's Christmas 2010 sales season and also
planned to invest around EUR80 million per year to secure
Karstadt's long-term viability and develop the chain
internationally.
About Arcandor AG
Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/--
formerly KarstadtQuelle AG, is a tourism and retail group. Its
three core business areas are tourism, mail order services and
department store retail. The Company's business areas are covered
by its three operating segments: Thomas Cook, Primondo and
Karstadt. Thomas Cook Group plc is a tour operator with
operations in Europe and North America, set up as a result of a
merger between MyTravel and Thomas Cook AG. It also operates the
e-commerce platform, Thomas Cook, supporting travel services.
Primondo has a portfolio of European universal and specialty mail
order companies, including the core brand Quelle. Karstadt
operates a range of department stores, such as cosmopolitan
stores, including KaDeWe (Kaufhaus des Westens), Karstadt
Oberpollinger and Alsterhaus; Karstadt brand department stores;
Karstadt sports department stores, offering sports goods in a
variety of retail outlets, and a portal, karstadt.de that offers
online shopping, among others.
As reported by the Troubled Company Reporter-Europe, a local court
in Essen formally opened insolvency proceedings for Arcandor on
September 1, 2009. The proceedings started for the Arcandor
holding company and for 14 units, including the Karstadt
department-store chain and Primondo mail-order division.
Arcandor filed for bankruptcy protection after the German
government turned down its request for loan guarantees. On
June 8, 2009, the government rejected two applications for help by
the company, which employs 43,000 people. The retailer sought
loan guarantees of EUR650 million (US$904 million) from Germany's
Economy Fund program. It also sought a further EUR437 million
from a state-owned bank.
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H U N G A R Y
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NEPSZAVA LAPKIADO: Magyar Initiates Liquidation Procedure
---------------------------------------------------------
MTI-Econews reports that Magyar Kozlonykiado has initiated a
liquidation procedure against Nepszava Lapkiado after the national
daily failed to pay its debts.
The report relates Magyar Kozlonykiado said in a statement that
the two companies terminated by mutual agreement on March 31,
2010, their agreement concluded on March 1, 2009 for printing
work, with Nepszava Lapkiado agreeing to pay its debt of HUF65
million (EUR226,365) within 15 days. According to the report, the
statement said that Nepszava Lapkiado still did not pay its 31
unpaid bills worth HUF22.6 million.
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I R E L A N D
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ANGLO IRISH: Full Access to Documents in Scandal Probe Sought
-------------------------------------------------------------
John Murray Brown at The Financial Times reports that Mr. Justice
Peter Kelly, head of Dublin's commercial court, has challenged the
Irish government to allow the state's director of corporate
enforcement full access to confidential documents in its
investigation into Anglo Irish Bank.
The FT relates Justice Kelly said it was "incongruous" for a
state-owned body to claim legal privilege over documents in
relation to an investigation being carried out by an officer of
the state.
Anglo Irish, the FT says, is claiming privilege over documents
relating to legal advice it received. The FT notes lawyers for
Paul Appleby, the director for corporate enforcement, said it was
like "walking in a minefield".
According to the FT, the judge asked the bank to reconsider
whether it was "wise, prudent or sensible" to do so and warned
that it could further delay the investigation that was set up in
early 2009 after a series of governance scandals at the bank.
The judge adjourned Thursday's hearing for two weeks but made
clear to the bank's lawyers he wanted the matter addressed "at the
highest level" as a matter of urgency, the FT discloses.
As reported by the Troubled Company Reporter-Europe on May 31,
2010, The Irish Times, citing Mr. Appleby, said that the inquiries
he is conducting into matters relating to Anglo Irish Bank will be
finished in "months rather than years". The Irish Times disclosed
the Anglo inquiry is the most complex conducted to date by the
office, and involves a number of matters including:
* the provision by Anglo in 2008 of financial assistance for
the purchase of its shares;
* matters associated with the loans made by Anglo to its
directors over a number of years, and
* matters relating to the declared level of customer deposits
at Anglo in 2008.
Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking. The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions. The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions. In addition, at September
30, 2008, its non-retail deposits included deposits from Irish
Life Assurance plc. The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.
* * *
As reported by the Troubled Company Reporter-Europe on April 7,
2010, Fitch Ratings affirmed Anglo Irish Bank Corporation's lower
Tier 2 subordinated debt downgraded to 'CCC' from 'BBB+'. Fitch
affirmed the rating on the bank's Upper Tier 2 subordinated notes
at 'CC'. It also affirmed the rating on the bank's Tier 1 notes
at 'C'.
EBS BUILDING: Moody's Cuts Ratings on Tier 1 Instruments to 'Ca'
----------------------------------------------------------------
Moody's Investors Service has downgraded the non-cumulative Tier 1
instruments of EBS Building Society to Ca from Caa1 (issued
through EBS Capital No1 S.A.), and the dated subordinated debt one
notch to Baa1 from A3. These rating actions follow the issuance
of a "Special Investment Share" to the Irish government that is
similar in scope to a nationalization, and the forthcoming
issuance of a Promissory Note to the government that will provide
capital to the society. The other ratings of the society
including the D BFSR, the A2 long-term bank deposit and senior
debt rating and the Aa1-rated government guaranteed debt were all
unaffected.
The downgrade of the non-cumulative Tier 1 instruments to Ca
follows the society's announcement that, as a result of the terms
of the SIS and the Promissory Note, EBS is prohibited from making
any discretionary payments on its existing regulatory capital
instruments. Moody's understands that this clause may remain in
place for the lifetime of the Promissory Note and therefore it is
possible that there will be a multi-year period in which coupon
payments are omitted. Moody's also notes that the society has
announced a tender offer to buyback these securities at a
substantial discount to the par value and this discount, if taken
up, is also in line with a Ca rating.
EBS is required to submit a restructuring plan due to the
substantial State Aid that it has received over the past year, in
the form of the EUR100 million SIS and the forthcoming Promissory
Note up to a value of EUR875 million. In addition EBS is also
participating in the National Asset Management Agency (NAMA), an
asset management company that will acquire land and development
loans, as well as related lending, from five Irish institutions.
The downgrade of the Tier 1 instruments earlier this year to Caa1,
was based on an expected-loss approach and reflected Moody's
assumption that the bank would likely omit coupons for at least a
two-year period, in line with other European bank's that have
benefited from substantial State Aid. This further downgrade
incorporates the increased likelihood that the coupon deferral
period could be much longer. The outlook for the securities is
stable reflecting Moody's conservative expected loss assumptions
in terms of the likelihood and time horizon of missed coupons, as
well as the low sensitivity of these instruments to the bank's
intrinsic financial strength.
In Ireland, as in most countries, the authorities have so far not
imposed losses on dated subordinated debt. As a result, and due
to the original Irish government guarantee (which explicitly
covered dated subordinated debt but which expires in September
2010), Moody's have so far incorporated a very high level of
systemic support into this class of debt such that at most
institutions the rating for dated subordinated debt has received
similar uplift as the rating for senior debt and deposits,
maintaining the one-notch differential to account for the
difference in claim in a gone-concern scenario. However the
issuance of the SIS now means that the Irish government has
control of the society and therefore this does provide the
authorities with more flexibility to impose losses on subordinated
debt in a going concern scenario, for example through a good bank
/ bad bank structure. Although Moody's believe that this option
is unlikely in the case of EBS the changed risk profile is
reflected in the one notch downgrade to Baa1. The outlook on the
dated subordinated debt is negative, in line with the outlook on
the society's long-term bank deposit and senior debt rating.
The last rating action on EBS was on March 31, 2010 when the
outlook on the society's BFSR was changed to positive from
developing and the Tier 1 instruments were downgraded to Caa1 from
B3.
Based in Dublin, Ireland, EBS Building Society reported total
assets of EUR21.5 billion as of 31 December 2009.
ELAN CORP: CEO Kelly Martin to Step Down in Two Years
-----------------------------------------------------
Andrew Jack at The Financial Times reports that Kelly Martin, the
chief executive of Corporation plc, is to step down in two years,
bringing an end to an intensive and turbulent period of
restructuring at the Irish-US biotechnology group.
According to the FT, under a succession agreement with the board,
Mr. Martin, appointed in 2003, will retire in May 2012 and remain
an adviser until the end of the following January.
About Elan Corporation
Headquartered in Dublin, Ireland, Elan Corporation, plc --
http://www.elan.com/-- is a neuroscience-based biotechnology
company. Its principal research and development, manufacturing
and marketing facilities are located in Ireland and the United
States. Elan's operations are organized into two business units:
Biopharmaceuticals and Elan Drug Technologies. Biopharmaceuticals
engages in research, development and commercial activities
primarily in neuroscience, autoimmune and severe chronic pain.
EDT focuses on the specialty pharmaceutical industry, including
specialized drug delivery and manufacturing.
Elan shares trade on the New York, London and Dublin Stock
Exchanges.
* * *
Elan Corporation plc is currently rated B2 (Corporate Family
Rating) with a positive rating outlook by Moody's Investors
Service.
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I T A L Y
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IT HOLDING: Gets Four Offers for Malo Cashmere Brand
----------------------------------------------------
Chris Staiti at Bloomberg News reports that IT Holding SpA
received four offers for its Malo cashmere brand.
According to Bloomberg, administrators for the company said in a
statement to the Italian Exchange on Thursday that the bidders are
all Italian companies. Bloomberg notes the administrators said
they will evaluate the bids in the next few days.
On Jan. 21, 2010, the Troubled Company Reporter-Europe, citing Dow
Jones Newswires, reported that Stanislao Chimenti, one of three
commissioners hired by the government to oversee the Italian
fashion group's turnaround plan, said the company received about
10 expressions of interest to buy Malo. According to Dow Jones,
people familiar with the situation said most of the interested
bidders for Malo are Italian clothing manufacturers or private
equity firms. Dow Jones disclosed Malo, a luxury cashmere
knitwear brand set up in Florence in 1972, has about 150 staff and
13 shops, including one on Madison Avenue in New York.
As reported by the Troubled Company Reporter-Europe, IT Holding
was granted bankruptcy protection in February 2009 along with all
of its units after failing to make payments to lenders and
suppliers.
About IT Holding SpA
Based in Milan, Italy, IT Holding SpA (BIT:ITH) --
http://www.itholding.com/-- operates in the luxury goods market.
The company and its subsidiaries design, produce and distribute
apparel, accessories, eyewear and perfumes. Its brand portfolio
embraces: owned brands, Gianfranco Ferre, Malo, Exte, as well as
licensed brands, Versace Jeans Couture, Versace Sport, Just
Cavalli, C'N'C Costume National and Galliano. The company's
production facilities are located in Italy. IT Holding SpA has a
worldwide distribution network, including 39 directly operated
stores, 274 monobrand stores and over 6,000 department and
specialty stores. In order to be present in the most significant
markets, IT Holding SpA has dedicated market companies: ITTIERRE
SpA, ITTIERRE France SA, ITTIERRE Moden GmbH, IT USA HOLDING Inc
and IT Asia Pacific Limited, among others.
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N E T H E R L A N D S
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NIELSEN COMPANY: Mulls US$1.75BB NYSE Float to Cut Debt Pile
------------------------------------------------------------
James Quinn at The Daily Telegraph reports that The Nielsen
Company B.V. is to raise US$1.75 billion when it floats on the New
York Stock Exchange.
The Daily Telegraph notes the Dutch company, in a regulatory
filing with the Securities and Exchange Commission, did not
disclose what percentage of the company's shares it plans to sell,
making a new valuation impossible. According to The Daily
Telegraph, earlier reports had suggested Nielsen could be worth as
much as US$21 billion including debt.
The Daily Telegraph says the company's six owners -- including
Blackstone, KKR and Carlyle -- have chosen to float the Dutch
company in what continues to be a turbulent market to reduce
Nielsen's sizable US$8.6 billion debt load.
According to The Daily Telegraph, Nielsen's financial performance
remains in doubt, having made a loss every year since being taking
private. The Daily Telegraph relates its most recent results, for
the year to March, showed a loss from continuing operations of
US$389 million.
Active in approximately 100 countries, with headquarters in
Haarlem, The Netherlands and New York, USA, The Nielsen Company
B.V. is a global information and media company.
Nielsen Company carries a 'B2' long term corporate family rating
from Moody's, 'B' issuer credit rating from standard & Poor's, and
'B' issuer default rating from Fitch.
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R O M A N I A
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DAEWOO SHIPBUILDING: Romanian Unit May Receive Loan Guarantee
-------------------------------------------------------------
Kyunghee Park at Bloomberg News reports that Daewoo-Mangalia Heavy
Industries SA, a unit of South Korea's Daewoo Shipbuilding &
Marine Engineering Co., may receive backing for a loan to fund
operations from the Romanian government.
Bloomberg relates Ahn Wook Hyeon, a spokesman at the South Korean
shipyard, said the government may guarantee a loan of about KRW100
billion (US$83 million) from a Romanian bank for the unit.
According to Bloomberg, the venture, 51% owned by Daewoo, had more
debt than capital at the end of last year, hampering its ability
to increase capacity. Daewoo-Mangalia, Bloomberg says, has an
order backlog for 14 vessels worth about US$1.1 billion,
representing more than two years of work.
Mr. Ahn, as cited by Bloomberg, said the South Korean company,
which is based in Seoul, backed loans worth KRW70 billion to the
Romanian unit two months ago. Bloomberg, citing The Korea
Economic Daily, says that Daewoo will inject KRW170 billion into
the venture.
About Daewoo Shipbuilding
Headquartered in Seoul, South Korea, Daewoo Shipbuilding &
Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in
building ships and offshore structures. Its product portfolio
includes commercial ships, such as liquefied natural gas (LNG)
carriers, oil tankers, containerships, liquefied petroleum gas
(LPG) carriers, pure car carriers; offshore structures, such as
FPSO vessels, drilling rigs, drillships and fixed platforms, and
naval vessels, including submarines, destroyers, rescue ships and
patrol boats.
* * *
Daewoo Shipbuilding & Marine Engineering Co. has been under a
creditors-led corporate restructuring program since 1999 along
with some other affiliates after its parent, Daewoo Group,
collapsed under heavy debt exposure. Daewoo Shipbuilding is up
for sale and the Korea Development Bank and Korea Asset Management
Corporation started the sale process of their remaining stakes in
the second half of 2006.
RCS & RDS: S&P Affirms Long-Term Corporate Credit Rating at 'B'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'B'
long-term corporate credit rating on Romania-headquartered
quadruple-play telecommunications and pay-TV services provider RCS
& RDS S.A. S&P removed the rating from CreditWatch, where it was
placed with positive implications on Feb. 5, 2010. The outlook is
stable.
At the same time, S&P withdrew its 'B+' debt rating on the
company's proposed US$200 million senior unsecured bond as
issuance has not taken place.
The rating affirmation and removal from CreditWatch positive
follows a review of RCS & RDS' creditworthiness in light of the
nonissuance of a proposed US$200 million unsecured bond. In S&P's
view, RCS & RDS's liquidity is still weak despite the successful
arrangement of a US$100 million bank facility due 2013. "This is
because the maturity profile of the company's debt becomes quite
steep when balanced against its free cash flow generation profile;
in particular, about US$375 million is to be repaid in 2012," said
Standard & Poor's credit analyst Michael O'Brien. S&P's current
view of the company's positive free cash flow generation profile
and existing liquidity sources indicates that a portion of
additional refinancing will be necessary to make the 2012
repayments, absent any exceptional emergency reduction of network
investments to preserve liquidity.
RCS & RDS generated US$24.7 million positive free operating cash
flow (FOCF) in 2009. "S&P anticipate that this will improve
significantly over the next two years, on the back of EBITDA
growth and lower capital expenditures following earlier network
investments," said Mr. O'Brien. S&P considers that leverage is
relatively low for a market-leading cable company, at 2.4x
adjusted debt to EBITDA for full-year 2009.
In S&P's view, RCS & RDS will grow free cash flow significantly,
maintain its market position in Romania, and maintain adequate
financial covenant headroom at all times.
S&P could raise the rating if RCS & RDS successfully mitigates
refinancing risk over 2011 and 2012. RCS & RDS could achieve this
by a combination of growth in free cash flow generation leading to
a build-up of headroom in the company's business plan, and the
arrangement of additional debt to refinance maturing debt not
covered by the company's new revolving facility.
Any substantial weakening in operating performance that puts
pressure on liquidity, or any delays or lack of visibility
regarding 2012 maturities, in particular, could in S&P's view
pressure the ratings.
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R U S S I A
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LOCKO-BANK: Fitch Upgrades LT Issuer Default Ratings to B+ From B
-----------------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default Ratings of
three mid-sized Russian banks -- Rosevrobank, Credit Bank of
Moscow and Locko-bank -- to 'B+' from 'B'. Fitch has
simultaneously removed Rosevro from Rating Watch Positive and CBOM
and Locko from Rating Watch Evolving, and a Stable Outlook has
been assigned to each bank's Long-term IDR. The rating actions
resolve the rating watches Fitch had placed on the banks' ratings
on 5 March 2010. A full rating breakdown is provided at the end
of this comment.
The upgrades of the three banks' Long-term IDRs reflect the
strengthening of certain aspects of Russia's banking system
infrastructure during the global financial crisis, most notably in
respect of banks ability to access liquidity, but also in regard
to the establishment of more orderly procedures for management of
bank failures. Fitch expects these changes to materially reduce
default risk for all significantly-sized Russian banks going
forward. The upgrades further reflect each bank's reasonable
asset quality through the crisis, currently satisfactory capital
positions (in CBOM's case being supported by capital contributions
from the bank's owner) and limited refinancing risks (at Locko, as
a result of significant wholesale repayments in 2009-Q110).
At the same time, the banks' ratings are constrained by their
limited scale and franchise, their lending focus on the
challenging and not very transparent SME segment (albeit these
risks seem to have been managed reasonably to date), quite
ambitious near-term growth plans, greater market risk as a result
of increased securities holdings on balance sheets and uncertainty
as to whether the banks' private shareholders would always have
the resources to provide support to the banks, should that be
required.
CBOM reported a moderate share of non-performing loans (NPLs,
defined as 90-days overdue) and rolled-over loans during the
crisis, which compares favorably to larger banks in the sector.
According to management IFRS accounts, NPLs stood at 2.7% of gross
loans at-end-Q110 (3% under audited IFRS at end-2009) and
restructured loans represented another 1.3% of the loan portfolio
at the same date. Fitch believes that asset quality metrics have
been supported by close monitoring of borrowers' cash flows, the
low level of construction exposure and expertise in retail trade
lending, which is the major focus of the bank's business.
However, the moderate level of NPLs should be considered in the
light of write-offs, which accounted for 2.4% of average loans in
2009, and the relatively unseasoned loan book, given its rapid
credit expansion in 2009, driven by a few large loans to leading
Russian corporates. At end-Q110, the bank's regulatory capital
ratio was a modest 11.7%, but is being supported in Q210 by an
expected total of RUB3 billion of subordinated debt (equal to 28%
of end-Q110 regulatory capital; RUB1.5 billion already received),
being contributed by the bank's sole owner, Roman Avdeev. Mr.
Avdeev also injected RUB3 billion of equity in 2009 and plans to
provide another RUB3 billion of subordinated loans in H210.
Locko has successfully repaid a significant portion of its
wholesale obligations, as they fell due in mid-2009 and Q110 (in
aggregate these repayments were equal to roughly a quarter of the
bank's remaining liabilities at end-Q110), as a result of which
foreign refinancing risk has substantially decreased. Locko's
reported asset quality metrics have also been reasonable to date:
at end-Q110, according to management IFRS accounts, NPLs were 3%
of gross loans (2.4% under audited IFRS at end-2009), while
rolled-over loans represented another 5.8% of the loan book at the
same date. Write-offs stood at 2.5% of gross average loans in
2009. NPLs were 2.5x covered by loan impairment reserves (LIR) at
end-Q110, and capitalization is adequate (Basel I tier 1 and total
capital ratios were 17% and 19%, respectively at end-Q110).
In 2009, loans overdue by more than 30 days at Rosevro increased
to 7% of loans, with restructured loans standing at about 9% of
the portfolio at year-end. Reserves (LIR/gross loans accounted
for 16.6% at end-Q110 under local standards) covered 186% of NPLs,
but coverage of NPLs and restructured loans was a lower 79%.
However, the bank's capital cushion (regulatory capital ratio of
18.7% at end-Q110) was sufficient to support an increase in
provisions to a high 27% of loans without breaching minimum
regulatory capital requirements. Rosevro's liquidity position is
comfortable at present, supported by the high level of liquid
assets and limited refinancing risk, but needs to be managed
carefully given the bank's high reliance on customer current
accounts, which comprised 48% of total liabilities at end-2009.
The rating actions represent the second part of a broader Fitch
review of privately-owned Russian banks' ratings which were placed
on rating watch in March 2010. Fitch expects to complete the
broader review in the next few weeks.
The rating actions are:
Rosevrobank
-- Long-term foreign currency IDR: upgraded to 'B+' from 'B';
removed from Rating Watch Positive; assigned Stable Outlook
-- Long-term local currency IDR: assigned at 'B+' with a Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Positive; assigned Stable
Outlook
Credit Bank of Moscow
-- Long-term foreign and local currency IDRs: upgraded to 'B+'
from 'B'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Senior unsecured debt: upgraded to 'B+' from 'B'; Recovery
Rating at 'RR4'
Locko-bank
-- Long-term foreign and local currency IDRs: upgraded to 'B+'
from 'B'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Evolving; assigned Stable
Outlook
CREDIT BANK: Fitch Lifts LT Issuer Default Ratings to B+ From 'B'
-----------------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default Ratings of
three mid-sized Russian banks -- Rosevrobank, Credit Bank of
Moscow and Locko-bank -- to 'B+' from 'B'. Fitch has
simultaneously removed Rosevro from Rating Watch Positive and CBOM
and Locko from Rating Watch Evolving, and a Stable Outlook has
been assigned to each bank's Long-term IDR. The rating actions
resolve the rating watches Fitch had placed on the banks' ratings
on 5 March 2010. A full rating breakdown is provided at the end
of this comment.
The upgrades of the three banks' Long-term IDRs reflect the
strengthening of certain aspects of Russia's banking system
infrastructure during the global financial crisis, most notably in
respect of banks ability to access liquidity, but also in regard
to the establishment of more orderly procedures for management of
bank failures. Fitch expects these changes to materially reduce
default risk for all significantly-sized Russian banks going
forward. The upgrades further reflect each bank's reasonable
asset quality through the crisis, currently satisfactory capital
positions (in CBOM's case being supported by capital contributions
from the bank's owner) and limited refinancing risks (at Locko, as
a result of significant wholesale repayments in 2009-Q110).
At the same time, the banks' ratings are constrained by their
limited scale and franchise, their lending focus on the
challenging and not very transparent SME segment (albeit these
risks seem to have been managed reasonably to date), quite
ambitious near-term growth plans, greater market risk as a result
of increased securities holdings on balance sheets and uncertainty
as to whether the banks' private shareholders would always have
the resources to provide support to the banks, should that be
required.
CBOM reported a moderate share of non-performing loans (NPLs,
defined as 90-days overdue) and rolled-over loans during the
crisis, which compares favorably to larger banks in the sector.
According to management IFRS accounts, NPLs stood at 2.7% of gross
loans at-end-Q110 (3% under audited IFRS at end-2009) and
restructured loans represented another 1.3% of the loan portfolio
at the same date. Fitch believes that asset quality metrics have
been supported by close monitoring of borrowers' cash flows, the
low level of construction exposure and expertise in retail trade
lending, which is the major focus of the bank's business.
However, the moderate level of NPLs should be considered in the
light of write-offs, which accounted for 2.4% of average loans in
2009, and the relatively unseasoned loan book, given its rapid
credit expansion in 2009, driven by a few large loans to leading
Russian corporates. At end-Q110, the bank's regulatory capital
ratio was a modest 11.7%, but is being supported in Q210 by an
expected total of RUB3 billion of subordinated debt (equal to 28%
of end-Q110 regulatory capital; RUB1.5 billion already received),
being contributed by the bank's sole owner, Roman Avdeev. Mr.
Avdeev also injected RUB3 billion of equity in 2009 and plans to
provide another RUB3 billion of subordinated loans in H210.
Locko has successfully repaid a significant portion of its
wholesale obligations, as they fell due in mid-2009 and Q110 (in
aggregate these repayments were equal to roughly a quarter of the
bank's remaining liabilities at end-Q110), as a result of which
foreign refinancing risk has substantially decreased. Locko's
reported asset quality metrics have also been reasonable to date:
at end-Q110, according to management IFRS accounts, NPLs were 3%
of gross loans (2.4% under audited IFRS at end-2009), while
rolled-over loans represented another 5.8% of the loan book at the
same date. Write-offs stood at 2.5% of gross average loans in
2009. NPLs were 2.5x covered by loan impairment reserves (LIR) at
end-Q110, and capitalization is adequate (Basel I tier 1 and total
capital ratios were 17% and 19%, respectively at end-Q110).
In 2009, loans overdue by more than 30 days at Rosevro increased
to 7% of loans, with restructured loans standing at about 9% of
the portfolio at year-end. Reserves (LIR/gross loans accounted
for 16.6% at end-Q110 under local standards) covered 186% of NPLs,
but coverage of NPLs and restructured loans was a lower 79%.
However, the bank's capital cushion (regulatory capital ratio of
18.7% at end-Q110) was sufficient to support an increase in
provisions to a high 27% of loans without breaching minimum
regulatory capital requirements. Rosevro's liquidity position is
comfortable at present, supported by the high level of liquid
assets and limited refinancing risk, but needs to be managed
carefully given the bank's high reliance on customer current
accounts, which comprised 48% of total liabilities at end-2009.
The rating actions represent the second part of a broader Fitch
review of privately-owned Russian banks' ratings which were placed
on rating watch in March 2010. Fitch expects to complete the
broader review in the next few weeks.
The rating actions are:
Rosevrobank
-- Long-term foreign currency IDR: upgraded to 'B+' from 'B';
removed from Rating Watch Positive; assigned Stable Outlook
-- Long-term local currency IDR: assigned at 'B+' with a Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Positive; assigned Stable
Outlook
Credit Bank of Moscow
-- Long-term foreign and local currency IDRs: upgraded to 'B+'
from 'B'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Senior unsecured debt: upgraded to 'B+' from 'B'; Recovery
Rating at 'RR4'
Locko-bank
-- Long-term foreign and local currency IDRs: upgraded to 'B+'
from 'B'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Evolving; assigned Stable
Outlook
ROSEVROBANK: Fitch Lifts LT Issuer Default Ratings to B+ From 'B'
-----------------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default Ratings of
three mid-sized Russian banks -- Rosevrobank, Credit Bank of
Moscow and Locko-bank -- to 'B+' from 'B'. Fitch has
simultaneously removed Rosevro from Rating Watch Positive and CBOM
and Locko from Rating Watch Evolving, and a Stable Outlook has
been assigned to each bank's Long-term IDR. The rating actions
resolve the rating watches Fitch had placed on the banks' ratings
on 5 March 2010. A full rating breakdown is provided at the end
of this comment.
The upgrades of the three banks' Long-term IDRs reflect the
strengthening of certain aspects of Russia's banking system
infrastructure during the global financial crisis, most notably in
respect of banks ability to access liquidity, but also in regard
to the establishment of more orderly procedures for management of
bank failures. Fitch expects these changes to materially reduce
default risk for all significantly-sized Russian banks going
forward. The upgrades further reflect each bank's reasonable
asset quality through the crisis, currently satisfactory capital
positions (in CBOM's case being supported by capital contributions
from the bank's owner) and limited refinancing risks (at Locko, as
a result of significant wholesale repayments in 2009-Q110).
At the same time, the banks' ratings are constrained by their
limited scale and franchise, their lending focus on the
challenging and not very transparent SME segment (albeit these
risks seem to have been managed reasonably to date), quite
ambitious near-term growth plans, greater market risk as a result
of increased securities holdings on balance sheets and uncertainty
as to whether the banks' private shareholders would always have
the resources to provide support to the banks, should that be
required.
CBOM reported a moderate share of non-performing loans (NPLs,
defined as 90-days overdue) and rolled-over loans during the
crisis, which compares favorably to larger banks in the sector.
According to management IFRS accounts, NPLs stood at 2.7% of gross
loans at-end-Q110 (3% under audited IFRS at end-2009) and
restructured loans represented another 1.3% of the loan portfolio
at the same date. Fitch believes that asset quality metrics have
been supported by close monitoring of borrowers' cash flows, the
low level of construction exposure and expertise in retail trade
lending, which is the major focus of the bank's business.
However, the moderate level of NPLs should be considered in the
light of write-offs, which accounted for 2.4% of average loans in
2009, and the relatively unseasoned loan book, given its rapid
credit expansion in 2009, driven by a few large loans to leading
Russian corporates. At end-Q110, the bank's regulatory capital
ratio was a modest 11.7%, but is being supported in Q210 by an
expected total of RUB3 billion of subordinated debt (equal to 28%
of end-Q110 regulatory capital; RUB1.5 billion already received),
being contributed by the bank's sole owner, Roman Avdeev. Mr.
Avdeev also injected RUB3 billion of equity in 2009 and plans to
provide another RUB3 billion of subordinated loans in H210.
Locko has successfully repaid a significant portion of its
wholesale obligations, as they fell due in mid-2009 and Q110 (in
aggregate these repayments were equal to roughly a quarter of the
bank's remaining liabilities at end-Q110), as a result of which
foreign refinancing risk has substantially decreased. Locko's
reported asset quality metrics have also been reasonable to date:
at end-Q110, according to management IFRS accounts, NPLs were 3%
of gross loans (2.4% under audited IFRS at end-2009), while
rolled-over loans represented another 5.8% of the loan book at the
same date. Write-offs stood at 2.5% of gross average loans in
2009. NPLs were 2.5x covered by loan impairment reserves (LIR) at
end-Q110, and capitalization is adequate (Basel I tier 1 and total
capital ratios were 17% and 19%, respectively at end-Q110).
In 2009, loans overdue by more than 30 days at Rosevro increased
to 7% of loans, with restructured loans standing at about 9% of
the portfolio at year-end. Reserves (LIR/gross loans accounted
for 16.6% at end-Q110 under local standards) covered 186% of NPLs,
but coverage of NPLs and restructured loans was a lower 79%.
However, the bank's capital cushion (regulatory capital ratio of
18.7% at end-Q110) was sufficient to support an increase in
provisions to a high 27% of loans without breaching minimum
regulatory capital requirements. Rosevro's liquidity position is
comfortable at present, supported by the high level of liquid
assets and limited refinancing risk, but needs to be managed
carefully given the bank's high reliance on customer current
accounts, which comprised 48% of total liabilities at end-2009.
The rating actions represent the second part of a broader Fitch
review of privately-owned Russian banks' ratings which were placed
on rating watch in March 2010. Fitch expects to complete the
broader review in the next few weeks.
The rating actions are:
Rosevrobank
-- Long-term foreign currency IDR: upgraded to 'B+' from 'B';
removed from Rating Watch Positive; assigned Stable Outlook
-- Long-term local currency IDR: assigned at 'B+' with a Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Positive; assigned Stable
Outlook
Credit Bank of Moscow
-- Long-term foreign and local currency IDRs: upgraded to 'B+'
from 'B'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Senior unsecured debt: upgraded to 'B+' from 'B'; Recovery
Rating at 'RR4'
Locko-bank
-- Long-term foreign and local currency IDRs: upgraded to 'B+'
from 'B'; removed from Rating Watch Evolving; assigned Stable
Outlook
-- Short-term IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'No Floor'
-- National Long-term rating: upgraded to 'A-(rus)' from 'BBB-
(rus)'; removed from Rating Watch Evolving; assigned Stable
Outlook
===============
S L O V E N I A
===============
ABANKA VIPA: Moody's Affirms 'D+' BFSR; Outlook Negative
--------------------------------------------------------
Moody's Investors Service has placed these fundamental ratings of
Nova Ljubljanska Banka, NLB InterFinanz (NLB's Zurich-based
subsidiary) and Nova Kreditna Banka Maribor on review for possible
downgrade:
-- NLB's A1/Prime-1 deposit ratings and C- bank financial
strength rating
-- NLB InterFinanz's Baa2 issuer rating
-- NKBM's A2/Prime-1 deposit ratings and D+ BFSR
At the same time, the rating agency affirmed the A3/Prime-2
deposit ratings and D+ BFSR of Abanka Vipa with a negative
outlook.
Moody's review is driven by the worse than expected asset quality
deterioration of NLB and NKBM in H2 2009 and continuing
uncertainty about the strength of the economic recovery in
Slovenia and the neighboring markets in which the banks operate.
Moody's notes that non-performing loans increased in H2 2009 at
more than double the rate of H1 2009, exceeding base case
expectations, as elaborated in the Special Comment entitled
"Moody's Approach to Estimating Slovenian Banks' Credit Losses",
published in October 2009. Although asset quality deterioration
appears to have slowed down in Q1 2010, the possibility of further
NPL accretions remains.
Moody's says that although NLB and NKBM currently maintain
adequate capitalization and provisioning coverage, possible
further asset quality deterioration over the next few months could
drive these metrics down to levels consistent with lower rating
categories. Moody's believes that further pressure on capital
could overwhelm recent positive developments in underlying
profitability at the banks, reflected in stronger interest
margins, and notes that franchise and funding challenges were
captured by the October 2009 downgrades of these banks. During
the review period, Moody's will make a more precise assessment of
the resilience of the banks' capital position within the context
of continuing asset quality pressures.
Moody's notes that these concerns apply equally to Abanka, but
that the affirmation of its ratings reflects better asset quality
resilience in 2009 and stronger capital and provisioning levels.
Moody's further notes the supportive attitude of the Slovenian
government to the banking sector, reflected by direct and indirect
liquidity support. This includes government guarantees for the
issue of medium-term debt in international markets that was
successfully accessed by both NLB (EUR1.5 billion in July 2009)
and Abanka (EUR500 million in September 2009). Moody's believes
that such support will continue to be made available for as long
as necessary, and could extend to capital support, if required.
Moody's assesses the likelihood of systemic support as high --
reflected in Slovenian banks' deposit ratings that incorporate
four notches of uplift for NLB and NKBM, and three notches of
uplift for Abanka.
Rating Actions In Detail
Nova Ljubljanska Banka
NLB's C- BFSR -- mapping to a Baseline Credit Assessment of Baa2
-- has been placed on review for possible downgrade. The review
was driven by the accelerated asset quality deterioration in H2
2009 (NPL accretion of 472 basis points compared to 155 basis
points in H1 2009 -- according to Moody's calculations) and the
risk of further material NPL accretion over the next few months.
The decision to put the rating on review was taken despite the
more favorable pre-provision earnings outlook for the bank in
2010.
Although current capitalization and provisioning coverage are
adequate, further significant asset quality deterioration over the
next few months, within the context of continuing weakness in the
Slovenian economy, could drive these metrics down to levels
consistent with lower rating categories.
Moody's says that the bank's A1/Prime-1 deposit ratings are partly
driven by its standalone financial strength (represented by the C-
BFSR). A possible downgrade of the BFSR could therefore lead to a
downgrade in the A1/Prime-1 deposit ratings, which have also been
placed on review for possible downgrade.
These debts of NLB has also been place on review for possible
downgrade:
-- The A2 rating on the EUR190.0 million subordinated loan
-- The Baa2 rating on the EUR100.0 million perpetual
subordinated floating rate notes
NLB InterFinanz
NLB InterFinanz's Baa2 issuer rating has been placed on review for
possible downgrade. The company's issuer rating is based on an
assessment of the company's stand-alone financial strength, but
also incorporates some uplift due to parental support, from NLB.
During the review, Moody's will assess both the resilience of the
company's intrinsic financial strength to deteriorating asset
quality, and the changes to the level of parental support
(represented by NLB's BFSR, now on review for possible downgrade).
Moody's notes that like other parts of NLB's business, NLB
InterFinanz's asset quality deteriorated sharply during 2009,
putting capital and provision reserves under pressure.
Nova Kreditna Banka Maribor
NKBM's D+ BFSR (mapping onto a BCA of Baa3) has been placed on
review for possible downgrade. The rating action was driven by
the accelerated asset quality deterioration in H2 2009 (NPL
accretion of 325 basis points compared to 152 basis points in H1
2009 -- according to Moody's calculations) and the risk of further
material NPL accretion over the next few months. The decision to
put the rating on review was taken despite the more favorable pre-
provision earnings outlook for the bank in 2010.
Although current capitalization and provisioning coverage are
adequate, further significant asset quality deterioration over the
next few months, within the context of continuing weakness in the
Slovenian economy, could drive these metrics down to levels
consistent with lower rating categories.
These debt of NKBM has also been placed on review for possible
downgrade:
-- The A3 rating on the EUR50.0 million subordinated floating
rate notes
-- The Baa3 rating on the EUR100.0 million 7.02% junior
subordinated loan participation notes
-- The Baa3 rating on the EUR50.0 million junior subordinated
floating rate Eurobonds
Abanka Vipa
Abanka's A3/Prime-2 deposit ratings and D+ BFSR have been affirmed
with a negative outlook. At their current levels, the ratings
adequately capture the impact of further asset quality
deterioration on capital and of reduced financial flexibility.
The maintenance of a negative outlook on Abanka's ratings, signals
that the bank's position within the D+ BFSR category is vulnerable
to worse-than-anticipated economic developments in Slovenia.
This debt of Abanka was also affirmed at Ba2 with a negative
outlook:
-- EUR120.0 million preferred stock loan participation notes
Moody's previous rating action on Nova Ljubljanska Banka was on
April 15, 2010, when the bank's hybrid debt ratings were
downgraded.
Moody's previous rating action on NLB InterFinanz was on
October 20, 2009, when its issuer rating was downgraded to Baa2.
Moody's previous rating action on Nova Kreditna Banka Maribor was
on April 15, 2010, when the bank's hybrid debt ratings were
downgraded.
Moody's previous rating action on Abanka Vipa was on April 15,
2010, when the bank's hybrid debt ratings were downgraded.
Headquartered in Ljubljana, Slovenia, Nova Ljubljanska Banka
reported total consolidated assets of EUR19.61 billion as of
June 30, 2009.
Headquartered in Zurich, Switzerland, NLB InterFinanz reported
total consolidated assets of CHF781.76 million (EUR525.6 million)
as of June 30, 2009.
Headquartered in Maribor, Slovenia, Nova Kreditna Banka Maribor
reported total consolidated assets of EUR5.79 billion as of
December 31, 2009.
Headquartered in Ljubljana, Slovenia, Abanka Vipa reported total
consolidated assets of EUR4.56 billion as of December 31, 2009.
NOVA KREDITNA: Moody's Puts 'D+' BFSR on Review for Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed these fundamental ratings of
Nova Ljubljanska Banka, NLB InterFinanz (NLB's Zurich-based
subsidiary) and Nova Kreditna Banka Maribor on review for possible
downgrade:
-- NLB's A1/Prime-1 deposit ratings and C- bank financial
strength rating
-- NLB InterFinanz's Baa2 issuer rating
-- NKBM's A2/Prime-1 deposit ratings and D+ BFSR
At the same time, the rating agency affirmed the A3/Prime-2
deposit ratings and D+ BFSR of Abanka Vipa with a negative
outlook.
Moody's review is driven by the worse than expected asset quality
deterioration of NLB and NKBM in H2 2009 and continuing
uncertainty about the strength of the economic recovery in
Slovenia and the neighboring markets in which the banks operate.
Moody's notes that non-performing loans increased in H2 2009 at
more than double the rate of H1 2009, exceeding base case
expectations, as elaborated in the Special Comment entitled
"Moody's Approach to Estimating Slovenian Banks' Credit Losses",
published in October 2009. Although asset quality deterioration
appears to have slowed down in Q1 2010, the possibility of further
NPL accretions remains.
Moody's says that although NLB and NKBM currently maintain
adequate capitalization and provisioning coverage, possible
further asset quality deterioration over the next few months could
drive these metrics down to levels consistent with lower rating
categories. Moody's believes that further pressure on capital
could overwhelm recent positive developments in underlying
profitability at the banks, reflected in stronger interest
margins, and notes that franchise and funding challenges were
captured by the October 2009 downgrades of these banks. During
the review period, Moody's will make a more precise assessment of
the resilience of the banks' capital position within the context
of continuing asset quality pressures.
Moody's notes that these concerns apply equally to Abanka, but
that the affirmation of its ratings reflects better asset quality
resilience in 2009 and stronger capital and provisioning levels.
Moody's further notes the supportive attitude of the Slovenian
government to the banking sector, reflected by direct and indirect
liquidity support. This includes government guarantees for the
issue of medium-term debt in international markets that was
successfully accessed by both NLB (EUR1.5 billion in July 2009)
and Abanka (EUR500 million in September 2009). Moody's believes
that such support will continue to be made available for as long
as necessary, and could extend to capital support, if required.
Moody's assesses the likelihood of systemic support as high --
reflected in Slovenian banks' deposit ratings that incorporate
four notches of uplift for NLB and NKBM, and three notches of
uplift for Abanka.
Rating Actions In Detail
Nova Ljubljanska Banka
NLB's C- BFSR -- mapping to a Baseline Credit Assessment of Baa2
-- has been placed on review for possible downgrade. The review
was driven by the accelerated asset quality deterioration in H2
2009 (NPL accretion of 472 basis points compared to 155 basis
points in H1 2009 -- according to Moody's calculations) and the
risk of further material NPL accretion over the next few months.
The decision to put the rating on review was taken despite the
more favorable pre-provision earnings outlook for the bank in
2010.
Although current capitalization and provisioning coverage are
adequate, further significant asset quality deterioration over the
next few months, within the context of continuing weakness in the
Slovenian economy, could drive these metrics down to levels
consistent with lower rating categories.
Moody's says that the bank's A1/Prime-1 deposit ratings are partly
driven by its standalone financial strength (represented by the C-
BFSR). A possible downgrade of the BFSR could therefore lead to a
downgrade in the A1/Prime-1 deposit ratings, which have also been
placed on review for possible downgrade.
These debts of NLB has also been place on review for possible
downgrade:
-- The A2 rating on the EUR190.0 million subordinated loan
-- The Baa2 rating on the EUR100.0 million perpetual
subordinated floating rate notes
NLB InterFinanz
NLB InterFinanz's Baa2 issuer rating has been placed on review for
possible downgrade. The company's issuer rating is based on an
assessment of the company's stand-alone financial strength, but
also incorporates some uplift due to parental support, from NLB.
During the review, Moody's will assess both the resilience of the
company's intrinsic financial strength to deteriorating asset
quality, and the changes to the level of parental support
(represented by NLB's BFSR, now on review for possible downgrade).
Moody's notes that like other parts of NLB's business, NLB
InterFinanz's asset quality deteriorated sharply during 2009,
putting capital and provision reserves under pressure.
Nova Kreditna Banka Maribor
NKBM's D+ BFSR (mapping onto a BCA of Baa3) has been placed on
review for possible downgrade. The rating action was driven by
the accelerated asset quality deterioration in H2 2009 (NPL
accretion of 325 basis points compared to 152 basis points in H1
2009 -- according to Moody's calculations) and the risk of further
material NPL accretion over the next few months. The decision to
put the rating on review was taken despite the more favorable pre-
provision earnings outlook for the bank in 2010.
Although current capitalization and provisioning coverage are
adequate, further significant asset quality deterioration over the
next few months, within the context of continuing weakness in the
Slovenian economy, could drive these metrics down to levels
consistent with lower rating categories.
These debt of NKBM has also been placed on review for possible
downgrade:
-- The A3 rating on the EUR50.0 million subordinated floating
rate notes
-- The Baa3 rating on the EUR100.0 million 7.02% junior
subordinated loan participation notes
-- The Baa3 rating on the EUR50.0 million junior subordinated
floating rate Eurobonds
Abanka Vipa
Abanka's A3/Prime-2 deposit ratings and D+ BFSR have been affirmed
with a negative outlook. At their current levels, the ratings
adequately capture the impact of further asset quality
deterioration on capital and of reduced financial flexibility.
The maintenance of a negative outlook on Abanka's ratings, signals
that the bank's position within the D+ BFSR category is vulnerable
to worse-than-anticipated economic developments in Slovenia.
This debt of Abanka was also affirmed at Ba2 with a negative
outlook:
-- EUR120.0 million preferred stock loan participation notes
Moody's previous rating action on Nova Ljubljanska Banka was on
April 15, 2010, when the bank's hybrid debt ratings were
downgraded.
Moody's previous rating action on NLB InterFinanz was on
October 20, 2009, when its issuer rating was downgraded to Baa2.
Moody's previous rating action on Nova Kreditna Banka Maribor was
on April 15, 2010, when the bank's hybrid debt ratings were
downgraded.
Moody's previous rating action on Abanka Vipa was on April 15,
2010, when the bank's hybrid debt ratings were downgraded.
Headquartered in Ljubljana, Slovenia, Nova Ljubljanska Banka
reported total consolidated assets of EUR19.61 billion as of
June 30, 2009.
Headquartered in Zurich, Switzerland, NLB InterFinanz reported
total consolidated assets of CHF781.76 million (EUR525.6 million)
as of June 30, 2009.
Headquartered in Maribor, Slovenia, Nova Kreditna Banka Maribor
reported total consolidated assets of EUR5.79 billion as of
December 31, 2009.
Headquartered in Ljubljana, Slovenia, Abanka Vipa reported total
consolidated assets of EUR4.56 billion as of December 31, 2009.
=========
S P A I N
=========
* SPAIN: Banks Scale Back Lending Amid Rising Defaults
------------------------------------------------------
Charles Penty at Bloomberg News reports that the worsening state
of Spain's savings banks, which account for more than half of the
country's outstanding loans, has squeezed companies in the euro
region's fourth-largest economy.
Bloomberg says the banks, known as "cajas," are scaling back
lending as rising defaults on real-estate loans and shrinking
revenue erode profits and eat into capital. They lack
shareholders to tap for funds and have seen their own borrowing
costs climb, Bloomberg notes.
"The cajas are weak and if they can't fund themselves, it's
obvious they can't lend to us," Bloomberg quoted Francesc Elias,
the owner of Bomba Elias, a company with about 20 employees based
in Rubi, near Barcelona.
The cajas' drag on the economy adds urgency to the Bank of Spain's
attempts to buttress the cajas by pushing ailing lenders to merge
with stronger partners and by seizing those that are insolvent,
Bloomberg states.
According to Bloomberg, Peter Braendle, who helps manage about
US$51 billion at Swisscanto Asset Management in Zurich, said
righting the savings banks has become a priority as the government
seeks to restore economic growth and tackle its budget deficit,
"The Spanish government was too slow to address the caja problem,"
Bloomberg quoted Mr. Braendle as saying. "It's a job that now has
to be done."
Spain forecasts a budget shortfall of 9.3% of gross domestic
product this year, equal to the deficit projected for Greece by
the European Commission, Bloomberg discloses. Spain is struggling
to persuade investors it can reduce the deficit, even as
government cost-cutting threatens to stifle an economic recovery,
Bloomberg recounts.
===========================
U N I T E D K I N G D O M
===========================
BEST PROFILE: Bought Out of Administration by Directors
-------------------------------------------------------
Alun Thorne at Birmingham Post reports that directors of Best
Profile, which owned The O Bar, bought the company out of
administration using the pre-pack process.
According to the report, Best Profile has been placed into
administration and its assets have been sold to Live Leisure, Best
Profile's sister company, which is run by the same directors.
Robin Evans and Keith and Paul Livesey, who were directors of Best
Profile, also run Live Leisure, the O Bar's new owner, the report
states. The report says the bar, which is located opposite
Brindleyplace, continues to trade and has been unaffected by the
deal.
The report notes Mr. Evans, of Live Leisure, said there were no
problems with trading at The O Bar, but that Best Profile had gone
into administration owing to "lease issues" at another of its
venues. The administration was handled by Leonard Curtis in Bury,
the report relates.
Best Profile is based in Lancashire, United Kingdom. It also
owned Opus Bar in Milton Keynes and a venue in Preston, according
to Birmingham Post.
BRITISH AIRWAYS: May Passenger Numbers Down 14.2% Due to Strikes
----------------------------------------------------------------
David Robertson at The Times reports that British Airways plc said
passenger numbers fell by 14.2% to 2.3 million during May after
industrial action disrupted services in the last two weeks of the
month.
According to The Times, the strikes have cost BA GBP119 million so
far.
BA's load factor, a measure of how full each flight is, in May
fell 5.4 percentage points to 69.7%, The Times says.
"The total cost of the strike period can only be assessed at the
end of the disruption and will reflect lost bookings and reduced
travel volumes offset by some volume driven cost savings," The
Times quoted BA as saying.
The Times notes that, according to the industry measure of revenue
passenger kilometers, BA's passenger numbers last month fell by
11.5% as a result of the strike.
Investors
Pilita Clark and Gill Plimmer at The Financial Times report that a
number of BA's investors remained broadly sanguine about the long-
term effect of the stoppages.
According to the FT, regulatory disclosures show some leading BA
investors, such as Aegon Asset Management, have increased their
holdings in the airline over the past week, when thousands of
cabin crew were in the middle of their latest three five-day
walkouts.
The FT relates Stephen Adams, Aegon's head of UK equities, said
this was because BA's underlying performance remained strong. "We
wouldn't be adding to our shareholding if we didn't believe in the
management and the long-term future of the company," the FT quoted
Mr. Adams as saying.
The FT notes other investors without a stake in the company said
even the prospect of strikes lasting through the busiest summer
months would be bearable as long as it brought about a permanent
reduction in staff costs.
"BA really doesn't have a choice," Paul Owens, a member of the
fixed-income team at the Liontrust investment management group,
said, according to the FT. "They have extremely high labor costs
and they have to address those costs." Mr. Owens, as cited by the
FT, said the risks for Willie Walsh, BA chief executive, were
high, "But I think he will win and I think he will serve as a
model for other managers."
Baggage Problems
BBC News, citing study by insurance company LV, reports that
UK passengers travelling with major airlines experience the most
baggage problems when flying with BA. According to BBC, the
survey shows one in 3.8 BA passengers have had their luggage lost,
damaged, or delayed in the past five years.
BBC notes BA said the figure was "complete rubbish".
"There is absolutely no evidence to suggest that a quarter of BA
passengers have experienced lost or delayed baggage over the last
five years," BBC quoted a BA spokeswoman as saying.
About British Airways
Headquartered in Harmondsworth, England, British Airways Plc,
along with its subsidiaries, (LON:BAY) -- http://www.ba.com/-- is
engaged in the operation of international and domestic scheduled
air services for the carriage of passengers, freight and mail and
the provision of ancillary services. The Company's principal
place of business is Heathrow. It also operates a worldwide air
cargo business, in conjunction with its scheduled passenger
services. The Company operates international scheduled airline
route networks together with its codeshare and franchise partners,
and flies to more than 300 destinations worldwide. During the
fiscal year ended March 31, 2009 (fiscal 2009), the Company
carried more than 33 million passengers. It carried 777,000 tons
of cargo to destinations in Europe, the Americas and throughout
the world. In July 2008, the Company's subsidiary, BA European
Limited (trading as OpenSkies), acquired the French airline,
L'Avion.
* * *
As reported in the Troubled Company Reporter-Europe on March 19,
2010, Moody's Investors Service lowered to B1 from Ba3 the
Corporate Family and Probability of Default Ratings of British
Airways plc; and the senior unsecured and subordinate ratings to
B2 and B3, respectively. Moody's said the outlook is stable.
This concludes the review that was initiated on November 10, 2009.
The rating action reflects Moody's view that credit metrics will
not be commensurate with the previous rating category in the
medium term. Moody's expect furthermore that metrics will be
burdened in the foreseeable future by the company's significant
pension deficit, which was at GBP2.6 billion for the APS and NAPS
schemes combined as of September 2009 (under IAS). Moody's
nevertheless understand that under the current agreement with the
trade unions, the cash contributions to these deficits will be
frozen at GBP330 million per year for three years, subject to
approval by the Pensions Regulator and the trustees
BROOKLANDS EURO: S&P Lifts Ratings on 3 Classes of Notes to CCC-
----------------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
Brooklands Euro Referenced Linked Notes 2002-1 Ltd.'s European
synthetic CDO transaction.
Specifically, S&P:
* Raised its ratings on classes D, E1, and E2;
* Placed on CreditWatch developing its ratings on classes A and C;
and
* Removed from CreditWatch negative and placed on CreditWatch
developing its ratings on classes A+ (Tap), B1, and B2.
In March 2010, in light of the discovery of a number of ineligible
assets in the portfolio, UBS AG as swap counterparty of this
transaction replaced all these ineligible assets. However, as a
result of the remediation process some of the matured reference
assets have still to be substituted. The matured assets account
for 22% of the total portfolio. S&P understands that UBS will
substitute these matured assets as soon as reasonably practicable.
On July 1, 2009, S&P downgraded the class D, E1, and E2 notes to
'CC' from 'CCC-'. In taking this rating action, S&P considered
that the total losses due to defaulted assets in the pool had
exceeded the attachment points of classes D, E1, and E2. The
principal balance of Brooklands' class D, E1, and E2 notes was
written off. However, as a result of the resolution process on
four defaulted ineligible assets, the principal balance of
Brooklands' class D, E1, and E2 notes has been fully written back
up and available thresholds have increased.
The CreditWatch developing placements reflect the unknown impact
that the substitution of the matured underlying assets may have on
this transaction. S&P will resolve the CreditWatch placements
based on the credit quality of the pool after UBS has substituted
the matured assets.
CreditWatch developing placements indicate three potential rating
outcomes -- i.e., that S&P will raise, lower, or affirm the
rating.
Ratings List
Brooklands Euro Referenced Linked Notes 2002-1 Ltd.
?276 Million Fixed- and Floating-Rate Notes
Ratings Raised
Rating
------
Class To From
----- -- ----
D CCC- CC
E1 CCC- CC
E2 CCC- CC
Ratings Placed on CreditWatch Developing
Rating
------
Class To From
----- -- ----
A B-/Watch Dev B-
C CCC-/Watch Dev CCC-
Ratings Removed From CreditWatch Negative and Placed on
CreditWatch Developing
Rating
------
Class To From
----- -- ----
A+ (Tap) BBB+/Watch Dev BBB+/Watch Neg
B1 CCC/Watch Dev CCC/Watch Neg
B2 CCC/Watch Dev CCC/Watch Neg
CORBETT'S BOOKSHOPS: Goes Into Administration
---------------------------------------------
David Matthews and Martin Ellis of accountants Grant Thornton UK
LLP were appointed Joint Administrators of Corbett's Bookshops
Limited in Tring, Princes Risborough, Harpenden and West Byfleet.
The administration follows months of difficult trading against the
backdrop of the recession and competition from the Internet,
supermarkets and larger competitors.
"It is a shame that Corbett's have gone into administration as the
bookshops provide valuable services to local communities. It is
not surprising that they struggled given the issues facing small
independent retailers," said Matthews, a Director at Grant
Thornton's Recovery & Reorganisation practice.
"Corbett's will continue to trade and we are considering all
options for the shops, which we are looking to sell as a going
concern. Failing that we will sell the leases. We hope the local
people who have supported the shops will come and take advantage
of the reduced prices. If anyone is interested in purchasing the
businesses or leases they should contact Jigisha Patel on 01189
839617."
"The staff of Corbett's Bookshops have provided a tremendous
service for a very long time. Corbett's will continue to employ
18 staff, while one employee has left and two are being made
redundant."
LADBROKES PLC: Barred From Offering Online Gaming in Netherlands
----------------------------------------------------------------
Claire Smith at The Scotsman reports that The European Court of
Justice on June upheld an injunction imposed against Ladbrokes and
Betfair barring them from offering online gaming to Dutch
customers.
Gambling on sporting events in Holland is controlled by the non-
profit making government-backed DeLotto, which uses money raised
to pay for sport, physical education, public health and culture,
the report notes.
The report relates European Court of Justice acknowledged Thursday
that Dutch gaming legislation is technically a restriction on EU
rules guaranteeing freedom to provide services. The report notes
it said such a restriction "may be justified by the objectives of
consumer protection and the prevention of both fraud and
incitement to squander money on gambling, as well as the need to
preserve public order".
Ladbrokes plc -- http://www.ladbrokesplc.com/-- is a betting and
gaming company. The Company operates in five segments. The
United Kingdom Retail segment comprises betting activities in the
shop estate in Great Britain. The Other European Retail segment
comprises all activities connected with the Ireland, Belgium and
Italy shop estates. The eGaming segment comprises betting and
gaming activities from online operations. The Telephone Betting
segment comprises activities relating to bets taken on the
telephone. The Other segment comprises international development
operations and the start up of its Spanish joint venture. As of
December 31, 2008, Ladbrokes plc had approximately 8,800 betting
shops in Great Britain. On February 4, 2008, the Company acquired
100% of Agenzie Scommesse SRL, a betting company in Italy.
Ladbrokes.com is a primary betting and gaming Websites with over
725,000 active customers betting in 13 languages and 18
currencies.
* * *
As reported by the Troubled Company Reporter-Europe on April 26,
2010 Fitch Ratings said that Ladbrokes PLC's ratings will not be
impacted by the company's announcement that it will be receiving
combined proceeds of approximately GBP95 million in FY10 from the
disposal of its Italian unit and a tax refund from the UK
authorities. Fitch said that while these factors will improve
Ladbrokes' financial profile, they are not sufficient as
standalone measures to change the company's current Long-term
Issuer Default Rating of 'BB+' with a Negative Outlook.
According to Fitch, notwithstanding recent improvements, Ladbrokes
continues to face operational challenges. Specifically, the
prospects for a recovery in UK consumer spending remains
constrained by high unemployment and an uncertain post-election
policy environment in addition to continuing competition and
increased consolidation risks in the internet gaming space, Fitch
said. Furthermore, Ladbrokes' post-dividend free cash flow may
remain limited in the longer term, Fitch noted.
ROYAL BANK: NAB Drops Out of Bidding Race for 318 Branches
----------------------------------------------------------
Sharlene Goff at The Financial Times reports that National
Australia Bank has pulled out of the race to buy a network of
branches owned by Royal Bank of Scotland soon after it received
detailed information on the assets.
According to the FT, a person close to the process said that NAB's
decision to step aside had been driven by concerns about the
broader economic environment, rather than the quality of the
assets involved.
RBS is selling 318 branches, most of which are in England, along
with a share of its retail and small business customers, the FT
notes.
The FT says NAB's withdrawal will boost the chances of success for
Santander, the Spanish bank that has long been regarded the
frontrunner in the auction. Santander is thought to have
submitted an initial offer of about GBP2 billion, the FT states.
The FT notes the lack of competition for the branches could be an
incentive for the bank to drop the price of its final bid ahead of
the June 14 deadline.
About RBS
The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks. The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing. On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO). In July 2008, the company disposed of its entire
interest in Global Voice Group Ltd.
* * *
As reported by the Troubled Company Reporter-Europe on March 29,
2010, Standard & Poor's Ratings Services said that it lowered its
ratings on "may pay" Tier 1 securities issued or guaranteed by The
Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'.
At the same time, the rating on the RBSG-related security issued
by Argon Capital PLC was similarly lowered to 'C' from 'CC'. The
counterparty credit ratings and stand-alone credit profiles of
RBSG and subsidiaries, and the ratings on other debt securities
issued by these entities, are unaffected.
VANTIS PLC: Seeks to Reduce Debts; In Sale, Restructuring Talks
---------------------------------------------------------------
Alex Spence at Times Online reports that Vantis plc on Thursday
said it is holding discussions with potential investors about
selling part of the firm to reduce its debts.
According to Times Online, the company is also talking to its
lenders about restructuring its balance sheet. Vantis, Times
Online says, owes more than GBP50 million to a consortium of
banks, including Lloyds TSB, Barclays and Royal Bank of Scotland.
"Negotiations with both investors and the company's banks are at
an early stage and there can be no certainty as to the impact on
current shareholders or the terms of any agreement which may be
reached," Times Online quoted Vantis as saying.
Times Online notes Paul Jackson, Vantis' chief executive, declined
to comment on the identity of the investors Vantis is talking to,
but said that the firm hopes to find a solution to its debt burden
within weeks.
Going Concern Doubt
As reported by the Troubled Company Reporter-Europe on Feb. 4,
2010, Daily Telegraph reports that Vantis had a going concern
warning issued against its interim results by its auditors Ernst &
Young. The Daily Telegraph disclosed Ernst & Young said
uncertainties as to when Vantis would receive its fees for
handling the Stanford International Bank liquidation "cast
significant doubt on the company's ability to continue as a going
concern". The Daily Telegraph noted that while Vantis said it had
ploughed "significant resources" into handling SIB's liquidation
since Nigel Hamilton-Smith and Peter Wastell were appointed as
joint receivers to the bank last February and joint liquidators in
April, a freezing order issued by a US court, legal appeals by a
US-appointed receiver and a delay in the sale and collection of
proceeds from "significant property assets" meant it had received
no fees in the six months to the end of October last year. The
Daily Telegraph said the lack of payment pushed Vantis into a
first-half pre-tax loss of GBP10.7 million, against a profit of
GBP4.5 million a year earlier.
Vantis plc -- http://www.vantisplc.com/-- is a UK-based
accounting, tax, business recovery and advisory group focused on
servicing SMEs and owner-managed businesses, as well as private
individuals.
VERGO RETAIL: MCR Completes Sale of Robbs Department Store
----------------------------------------------------------
MCR, the administrators for department store business Vergo Retail
Limited, has announced the successful sale of Robbs department
store in Hexham, Northumberland to J E Beale PLC. The deal was
completed on June 3, 2010, following the appointment of joint
administrators Sarah Bell and Steven Muncaster, Partners at MCR
earlier in May.
Robbs department store is one of 17 Vergo outlets currently
operating across the UK that includes other significant department
stores such as Joplings of Sunderland and Derrys of Plymouth.
Sarah Bell, Partner of MCR, stated, "Following an effective
administration process, we are delighted to confirm the sale of
such an iconic store in the region. It's positive news for both
the 76 Company employees whose jobs will be directly transferred
to the new owners as well as the local community."
J E Beale PLC is a retail group based in Bournemouth operating 12
department stores across the UK that includes the recently
purchased Robbs. It purchased Robbs as a going concern including
all assets, brand, intellectual property and employees.
MCR encourages potential purchasers to contact them to discuss the
sale as a going concern, of the 16 remaining stores. If
purchasers are not found, an announcement confirming the final
days of trading for these stores will be made later this month.
Interested parties should contact MCR on 0161 827 9000.
VICTORIA FUNDING: Moody's Junks Rating on Class E Notes From B1
---------------------------------------------------------------
Moody's Investors Service has downgraded the Class E Notes issued
by Victoria Funding PLC (amount reflects initial outstandings):
-- GBP3,300,000 Class E Mortgage Backed Floating Rate Notes due
2014, Downgraded to Caa2; previously on Jan 15, 2009
Downgraded to B1
At the same time, Moody's affirmed the Aaa rating of the Class B
Notes and the Class C Notes and affirmed the A2 rating of the
Class D Notes. The rating on the Class A Notes was withdrawn on
24 November 2008 due to redemption in full following the repayment
of the Calamander loan on its maturity date. Moody's does not
rate the Class R (the expense account).
Victoria Funding PLC closed in October 2005 and represents the
securitization of initially seven commercial mortgage loans
originated by Citibank, N.A., London Branch, that were secured by
18 properties located predominantly in Greater London. Currently
two loans remain in the pool: (i) the Zeloof Loan (90% of the
current pool balance) secured by a mixed use (predominantly
office) building in London and (ii) the Brisk Loan (10% of the
current pool balance) secured by a retail property in Coventry.
The sequential payment trigger has been hit as the principal
amount of the currently outstanding Notes is less than 20% of the
initial principal amount of the Notes at closing.
The rating affirmation of the Class B, C, and D Notes is driven by
(i) the good credit enhancement levels and (ii) the continued good
performance of the Zeloof Loan. The rating downgrade on the Class
E Notes is due to (i) Moody's increased refinancing default risk
and loss assessment for the Brisk Loan and (ii) continued
quarterly interest shortfalls occurring on the Class E Notes that
are the result of an available funds cap, but also of an base rate
mismatch in relation to the Brisk Loan.
Moody's Portfolio Analysis
Zeloof Loan (90% of the current pool). The loan is secured by an
office / mixed-use property in the east of the City of London,
which is let to 103 tenants with Interxion as the largest tenant,
accounting for over half of the income. The current interest
coverage ratio of 4.45x is very strong and enable to property
rental income to cover the debt service even in case the largest
tenant defaulted. Moody's property value of GBP42 million
considers the secondary quality of the building and some rental
income deterioration. The resulting Moody's Loan-to-value of 48%
benefits Moody's refinancing risk assessment; the loan maturity is
in March 2012. The borrower may request an extension of the loan
term, which is subject to the lender's consent. The servicing
agreement in turn describes prohibited actions, which include
consenting to a loan term extension. Consequently, Moody's does
not expect an extension of the loan term for the Zeloof Loan.
Brisk Loan (10% of the current pool). The loan is secured by a
small retail property in Coventry (West Midlands). The loan
underperforms Moody's expectations as the vacant space (reflecting
about 20% of rental income) has not been re-let since end-2008
when the former tenant had gone into administration.
Consequently, compared to its beginning of 2009 assessment,
Moody's has adjusted its rental income and property value
assessment: The current Moody's property value of GBP1.75 million
is about 42% lower than the underwriter value of GBP3.00 million
from July 2004. The resulting Moody's LTV is 125%. Moody's
assesses a considerable default risk for the loan over its
remaining term. Currently, the loan benefits from low interest
rates (reported ICR 3.6x, but the debt yield is only 6% on current
rental income). Considering limited benefit from amortization
until loan maturity (September 2011), Moody's assesses a very high
likelihood that the loan will not repay as scheduled/ defaults on
its maturity date. Moody's notes that special servicers in many
cases, upon loan default, do not pursue an immediate fire sale of
the property but follow in most cases a work-out strategy of
repositioning the property (with or without cooperation of the
borrower), targeting an orderly sale at a later stage. Therefore,
Moody's expects for this loan that very high losses will
crystallize towards the end of the transaction term (legal final
maturity of the Notes in April 2014).
Portfolio Loss Exposure. Moody's notes the bifurcated nature of
the loan pool and expects a considerable amount of losses on the
securitized portfolio, stemming from the Brisk Loan. The Classes
B and C Notes can be fully repaid from the repayment proceeds of
the Zeloof Loan, for which Moody's assesses a low default risk.
The Class D Notes rely for their repayment to a small extent
(currently GBP 0.4 million) on sufficient principal proceeds from
the Brisk Loan; Moody's expects very high losses for the Class E
Notes given the sequential allocation of proceeds and Moody's
expected loss assessment for the Brisk Loan.
The rating downgrade on the Class E Notes considers in addition
that quarterly interest shortfalls with respect to this class have
occurred, which are in excess of Moody's initial expectation. The
Class E Notes are subject to an interest deferral mechanism when
such shortfall in revenue funds available to pay interest on the
Class E Notes is due to a prepayment of a Loan (generally
considered to be an available funds cap, but compared to other AFC
mechanisms the unpaid Class E interest is not extinguished but
deferred). The significant sequential paydown of the Notes since
closing due to repayments and prepayments has resulted in a
negative interest differential between the loans and the notes
which will result in interest shortfalls on the Class E Notes in
most quarters going forward. Furthermore, the Brisk Loan, which
pays interest based on the Bank of England base rate, exposes the
Issuer to an unhedged exposure in relation to the spread between
3-month GBP-Libor and the Bank of England base rate, which
currently contributes to the negative interest differential
between interest due on the loans and interest due on the Notes.
Consequently, Moody's understands that two reasons result in the
currently negative interest differential: (i) the margin
differential between the remaining Loans and the outstanding
Notes; and (ii) the unhedged nature of the Brisk Loan in relation
to Bank of England base rate versus 3-month GBP-Libor. Moody's
has analyzed different interest rate scenarios and Bank of England
base rate versus 3-month GBP-Libor spread scenarios and has come
to the conclusion that the loss posed to Class E Noteholders due
to lost interest on the Notes is, together with the portfolio
expected principal loss, commensurate with a Caa2 rating.
WINE TRADERS: Wound Up Following Insolvency Service Probe
---------------------------------------------------------
Wine Traders International Ltd., a wine investment company, whose
registered address was in Fetcham, Surrey, was wound up in the
High Court in May 2010 following an investigation by Company
Investigations of The Insolvency Service.
The company's operations were characterized by exaggerated claims
of the benefits for potential investors, a lack of clarity about
their operations and a refusal to cooperate with The Insolvency
Service's investigation.
Wine Traders claimed to be a wine trader; acting as an agent for
wine collectors and buying wine on their behalf. However, due to
a lack of cooperation from the company and its officers, it was
not possible, during the investigation, to establish what trading
activities were undertaken by the company or if they were
legitimate. The lack of cooperation also meant it was not
possible to confirm that accounts had been accurately filed or if
any wine was ever supplied to customers. The annual accounts
which were filed, were nine months overdue and the annual return
seven months late.
Commenting on the case Peter Jones, investigator for The
Insolvency Service, said, "The public should be reassured that The
Insolvency Service works hard to remove dishonest, reckless and
irresponsible people from the business environment. The action
taken on this matter sends a clear and simple message to company
directors; if you run a business that aims to cheat customers, you
will be closed down."
At the winding up hearing the Court heard Wine Traders had
abandoned its last known trading premises in June 2009. The
company's address is currently unknown.
The Insolvency Service investigation highlighted the unrealistic
potential investment claims made by the company. In some cases
investment opportunities of up to 90% above those offered by other
sellers were available demonstrating that the company's statements
about their fine wines being a good investment were potentially
misleading. The Court agreed that members of the public who
purchased wine from the company were highly likely to suffer loss
or at the very least not achieve the return on their investment as
Wine Traders company literature led them to expect. At the
hearing investigators also confirmed they were unable to establish
if funds paid out of the company's bank account were used for
legitimate business purposes.
Wine Traders International Limited was incorporated on September
15, 2004. Its registered office is at Fetcham Park House, Lower
Road, Fetcham, Surrey KT22 9HD. This is a serviced office and the
company has no presence at this address. All mail is collected
irregularly by a courier. Prior to August 19, 2009 the registered
office of the company was at 217 Northdown Road, Margate, the
offices of the company's former accountants.
All public inquiries concerning the affairs of the company should
be made to:
The Official Receiver
Public Interest Unit
Telephone: 0207 637 1110
E-mail: piu.or@insolvency.gsi.gov.uk
WOODS OF PERTH: Axes 57 Jobs Following Administration
-----------------------------------------------------
Helen Morris at PrintWeek reports that Woods of Perth has made 57
of its 71 staff redundant following its fall into administration.
According to PrintWeek, Stuart Mason, managing director of
Cumbernauld-based The Ink Shop, said the company was considering
recruiting former Woods employees.
PrintWeek notes Paul Anderson, managing director at Fairprint,
said the quality of the staff at Woods of Perth was "first class",
and the company has been looking to take five or six on.
As reported by the Troubled Company Reporter-Europe on June 1,
2010, PrintWeek said Laurie Manson and Bruce Cartwright of
PricewaterhouseCoopers were appointed as joint administrators to
the company on May 28. PrintWeek disclosed Mr. Manson said the
company had suffered from the general economic downturn and a lack
of demand for high quality products. It is hoped that the
business will trade for a short time while a buyer is sought,
according to PrintWeek.
Woods of Perth is a printing company based in Perth.
* UK: Print Industry Fourth Hardest-Hit Sector, Report Shows
------------------------------------------------------------
Helen Morris at PrintWeek, citing the latest insolvency figures
from Euler Hermes UK, reports that the health of the print
industry has shown little improvement but has not significantly
worsened during the start of 2010.
According to PrintWeek, in its "Risk Bulletin" table of hardest-
hit trade sectors, print appeared fourth with an insolvency rate
of 0.72% for the first quarter of the year, up from 0.71% in the
fourth quarter of 2009. The paper sector followed closely behind
in fifth place, with an insolvency rate of 0.69%, up from 0.46%,
PrintWeek notes.
"I agree with the summary that print continues to be in bad shape
statistically, but the true position remains very hard to judge.
I'm sure the continued decline in overall print spend will have
its effect on print insolvencies, even when we have evidence of an
improvement in the economy," PrintWeek quoted Nigel Cliffe,
managing director of print and print management firm Cliffe
Associates, as saying.
According to PrintWeek, the Euler Hermes report also revealed the
impact of increasing paper prices, which, while "sorely needed" by
the paper industry, had an "evident impact on the supply chain".
* UK: Small Businesses Fear Insolvency Over Interest Rate Hike
--------------------------------------------------------------
Following calls from the Organisation for Economic Co-operation
and Development to raise interest rates to 3.5%, insolvency trade
body R3 has traced the impact that rises would have on small
businesses. According to a survey of 300 small businesses
conducted this month:
* 7% of small businesses believe they are likely to become
insolvent if the base rate rises to between 2 to 3.5%
* 12% of small businesses believe they are likely to become
insolvent if the base rate rises to between 3.5 to 4%
* 18% of small businesses believe they are likely to become
insolvent if the base rate rises to between 4 to 5% (it was
over 5% in 2007).
R3 President Steven Law commented on the findings, "For businesses
that are repaying bank loans and rely on consumer spend, an
increase in interest rates would be a double blow. Pressure will
be keenly felt among highly geared businesses, and an increase in
the cost of finance either for working capital or to fund
expansion are factors than can lead to corporate insolvency."
The research shows that the hotel, catering and retail sectors are
most likely to face insolvency in view of a rise in interest rates
-- about a third fear insolvency in any rise scenario. Small
businesses in the construction and manufacturing industries are
less likely to believe that they will become insolvent if interest
rates increase.
By UK region, small businesses in the North West are the most
likely to go into insolvency with increased interest rates, while
the Midlands is the least likely.
Steven Law concluded, "Traditionally known as the manufacturing
hub it is unsurprising that the Midlands region is less worried
about a rates rise as their income comes from business-to-business
spend rather than consumer spend. They often purchase plant on
fixed term finance and will be in a better position than the
highly geared businesses.
"Although increases in interest rates are likely to be gradual, we
always advise any business owner who believes their company may be
in financial difficulty to seek advice sooner rather than later."
===============
X X X X X X X X
===============
* EUROPE: EU-Sponsored Credit Rating Firm to Face Challenges
------------------------------------------------------------
Gabi Thesing and Matthew Brown at Bloomberg News report that money
managers and analysts said that a European Union-sponsored credit
rating company may struggle to convince investors that it's
independent enough to assess government finances and signal any
future sovereign debt crisis.
Bloomberg recalls German Finance Minister Wolfgang Schaeuble said
June 2 the "oligopoly" of Standard & Poor's, Moody's Investors
Service and Fitch Ratings should be broken. According to
Bloomberg, officials including European Central Bank Governing
Council member Christian Noyer say the ratings companies
aggravated the crisis, make risk assessments that aren't timely
and are too influenced by markets.
Bloomberg notes investors, including Toby Nangle at Baring
Investment Services Ltd., said a government-established credit
assessor may find it hard to persuade bond-buyers it isn't
shielding euro-region nations such as Spain and Portugal from
scrutiny as countries struggle to cut their budget deficits.
"A government-owned ratings agency that was rating sovereigns
would have an uphill struggle in building credibility in the
market," Bloomberg quoted Mr. Nangle, who helps oversee US$46
billion in assets in London, as saying.
Bloomberg relates the calls for an alternative to the existing
trio of ratings companies comes as Spain and Portugal try to avoid
the fate of Greece, which was downgraded to junk by S&P on
April 27, four days after the country asked for an EU-led bailout.
Spanish stocks and bonds fell on May 31 after Fitch cut its rating
on the country's debt, Bloomberg recounts.
As reported by the Troubled Company Reporter-Europe on June 4,
2010, Bloomberg News said the European Union on June 2 called for
a single supervisor of credit-rating companies. Bloomberg
disclosed the European Commission proposed giving the power to
investigate, issue fines and revoke licenses to a new EU
authority. The Brussels-based commission also proposed reining in
risk-taking behavior and compensation at financial companies to
prevent a repeat of the credit crunch, according to Bloomberg.
Bloomberg noted the commission said banks, investment firms and
other companies that issue structured-finance instruments should
give all interested credit-ratings firms access to the same data
they give their chosen credit-rating company. The commission, as
cited by Bloomberg, said powers over credit-ratings companies
would be given to the proposed European Securities and Markets
Authority, called ESMA.
* S&P Downgrades Ratings on Seven Tranches of European CDOs
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
seven tranches and withdrew its ratings on six tranches of
European synthetic collateralized debt obligations.
The rating actions follow S&P's recent rating action on the
underlying collateral to which these transactions are weak-linked.
Under S&P's criteria, changes to the rating on the collateral are
reflected in S&P's ratings on these notes.
The withdrawal of the ratings on seven tranches follows the
arranger's notification to S&P that the transactions have fully
unwound. The transactions unwound following the redemption of the
underlying collateral.
Ratings List
Ratings Lowered
Cairn Co. (Jersey No. 6) Ltd.
EUR40 Million Zero Coupon Notes Series 1
Rating
------
To From
-- ----
AA+ AAA
Coriolanus Ltd.
EUR10 Million Floating-Rate Secured Loan Series 104
Rating
------
To From
-- ----
A- AA+
Poplar Finance Ltd.
EUR11 Million Secured Repackaging Schuldschein Loan Agreement
With Limited Recourse Series 2008-1
Rating
------
To From
-- ----
AA+ AAA
Protected Credit Notes Ltd.
EUR5 Million Non-Coupon Paying Delacroix Managed Credit Fund
Limited Fund-Linked SPI Notes Series 2
Rating
------
To From
-- ----
AA+p AAAp
TransAlp 3 Securities PLC
EUR15 Million Schuldschein Series 2008-1
Rating
------
To From
-- ----
A+ AAA
TransAlp 3 Securities PLC
EUR15 Million Schuldschein Series 2008-2
Rating
------
To From
-- ----
AA+ AAA
TransAlp 3 Securities PLC
EUR10 Million Schuldschein Series 2008-3
Rating
------
To From
-- ----
A+ AAA
Ratings Withdrawn
Argon Capital PLC
EUR17.961 Million Limited-Recourse Secured Variable-Rate Notes
Series 40
Rating
------
To From
-- ----
NR D
dbInvestor Solutions PLC
EUR40 Million Variable Long-Term Secured Notes Series 6
Rating
------
To From
-- ----
NR AAA
Eirles Two Ltd.
EUR78 Million Variable-Coupon Secured Notes Series 40
Rating
------
To From
-- ----
NR A-
Eirles Two Ltd.
US$51.77 Million Fixed-Rate Secured Notes Series 51
Rating
------
To From
-- ----
NR AA
Rheinwest Credit Management
GBP38 Million Wuert CMBS Floating-Rate Credit-Linked Notes
Series C-006
Rating
------
To From
-- ----
NR BBB
Rheinwest Credit Management
GBP17.5 Million Wuert CMBS Floating-Rate Credit-Linked Notes
Series C-008
Rating
------
To From
-- ----
NR A
NR -- Not rated.
* BOND PRICING: For the Week May 24 to May 28, 2010
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRIA
-------
BA CREDITANSTALT 5.470 8/28/2013 EUR 71.50
KOMMUNALKREDIT 4.900 6/23/2031 EUR 45.13
KOMMUNALKREDIT 6.460 3/27/2022 EUR 63.75
KOMMUNALKREDIT 5.430 2/13/2024 EUR 56.38
BELGIUM
-------
FORTIS BANK 8.750 12/7/2010 EUR 14.88
CYPRUS
------
INTERPIPE LTD 8.750 8/2/2010 USD 77.49
FINLAND
-------
MUNI FINANCE PLC 0.500 9/24/2020 CAD 59.01
MUNI FINANCE PLC 1.000 2/27/2018 AUD 65.01
MUNI FINANCE PLC 0.500 3/17/2025 CAD 44.85
MUNI FINANCE PLC 0.250 6/28/2040 CAD 20.96
FRANCE
------
AIR FRANCE-KLM 4.970 4/1/2015 EUR 13.59
ALCATEL SA 4.750 1/1/2011 EUR 16.20
ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.10
ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 4.85
ATOS ORIGIN SA 2.500 1/1/2016 EUR 51.66
CALYON 6.000 6/18/2047 EUR 51.18
CAP GEMINI SOGET 1.000 1/1/2012 EUR 44.72
CAP GEMINI SOGET 3.500 1/1/2014 EUR 44.73
CLUB MEDITERRANE 4.375 11/1/2010 EUR 49.21
EURAZEO 6.250 6/10/2014 EUR 57.24
FAURECIA 4.500 1/1/2015 EUR 19.20
GROUPE VIAL 2.500 1/1/2014 EUR 17.92
MAUREL ET PROM 7.125 7/31/2014 EUR 16.50
NEXANS SA 4.000 1/1/2016 EUR 62.11
PEUGEOT SA 4.450 1/1/2016 EUR 28.85
PUBLICIS GROUPE 1.000 1/18/2018 EUR 46.46
PUBLICIS GROUPE 3.125 7/30/2014 EUR 36.94
RHODIA SA 0.500 1/1/2014 EUR 44.49
SOC AIR FRANCE 2.750 4/1/2020 EUR 19.91
SOITEC 6.250 9/9/2014 EUR 9.57
TEM 4.250 1/1/2015 EUR 53.42
THEOLIA 2.000 1/1/2014 EUR 12.94
VALEO 2.375 1/1/2011 EUR 46.51
ZLOMREX INT FIN 8.500 2/1/2014 EUR 47.38
ZLOMREX INT FIN 8.500 2/1/2014 EUR 47.38
GERMANY
-------
DEUTSCHE BK LOND 3.000 5/18/2012 CHF 64.19
DZ BANK AG 6.350 4/9/2018 EUR 116.06
ESCADA AG 7.500 4/1/2012 EUR 17.99
EUROHYPO AG 5.000 5/15/2027 EUR 93.49
HSH NORDBANK AG 4.375 2/14/2017 EUR 67.44
L-BANK FOERDERBK 0.500 5/10/2027 CAD 46.36
LANDESBK BERLIN 3.000 6/2/2020 EUR 2.99
LB BADEN-WUERTT 2.500 1/30/2034 EUR 70.74
QIMONDA FINANCE 6.750 3/22/2013 USD 3.50
RENTENBANK 1.000 3/29/2017 NZD 71.42
SOLON AG SOLAR 1.375 12/6/2012 EUR 38.78
GREECE
------
HELLENIC REP I/L 2.300 7/25/2030 EUR 54.36
HELLENIC REP I/L 2.900 7/25/2025 EUR 56.39
HELLENIC REPUB 5.000 8/22/2016 JPY 72.26
HELLENIC REPUB 5.200 7/17/2034 EUR 66.63
HELLENIC REPUB 5.000 3/11/2019 EUR 68.68
HELLENIC REPUBLI 4.700 3/20/2024 EUR 71.07
HELLENIC REPUBLI 4.500 9/20/2037 EUR 59.45
HELLENIC REPUBLI 5.300 3/20/2026 EUR 72.19
HELLENIC REPUBLI 4.600 9/20/2040 EUR 59.39
YIOULA GLASSWORK 9.000 12/1/2015 EUR 56.00
YIOULA GLASSWORK 9.000 12/1/2015 EUR 56.00
IRELAND
-------
ALLIED IRISH BKS 5.250 3/10/2025 GBP 62.29
DEPFA ACS BANK 4.900 8/24/2035 CAD 71.02
DEPFA ACS BANK 1.920 5/9/2020 JPY 72.54
DEPFA ACS BANK 5.125 3/16/2037 USD 68.62
DEPFA ACS BANK 5.250 3/31/2025 CAD 74.78
DEPFA ACS BANK 5.125 3/16/2037 USD 68.77
DEPFA ACS BANK 0.500 3/3/2025 CAD 30.28
IRISH NATIONWIDE 6.250 6/26/2012 GBP 104.97
IRISH PERM PLC 7.284 2/15/2035 EUR 63.77
ONO FINANCE II 8.000 5/16/2014 EUR 71.63
ONO FINANCE II 8.000 5/16/2014 EUR 72.19
UT2 FUNDING PLC 5.321 6/30/2016 EUR 70.96
ITALY
-----
BANCA INTESA SPA 6.984 2/7/2035 EUR 73.13
LUXEMBOURG
----------
ARCELORMITTAL 7.250 4/1/2014 EUR 28.84
BREEZE FINANCE 4.524 4/19/2027 EUR 68.75
GLOBAL YATIRIM H 9.250 7/31/2012 USD 68.63
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 59.25
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 60.04
NETHERLANDS
-----------
AI FINANCE B.V. 10.875 7/15/2012 USD 73.00
APP INTL FINANCE 11.750 10/1/2005 USD 0.01
ASTANA FINANCE 7.875 6/8/2010 EUR 25.50
BK NED GEMEENTEN 0.500 6/27/2018 CAD 73.16
BK NED GEMEENTEN 0.500 2/24/2025 CAD 50.72
BLT FINANCE BV 7.500 5/15/2014 USD 68.00
BLT FINANCE BV 7.500 5/15/2014 USD 68.75
BRIT INSURANCE 6.625 12/9/2030 GBP 71.37
DGS INTL FIN BV 10.000 6/1/2007 USD 0.01
ELEC DE CAR FIN 8.500 4/10/2018 USD 51.85
EM.TV FINANCE BV 5.250 5/8/2013 EUR 5.42
IVG FINANCE BV 1.750 3/29/2017 EUR 69.77
NATL INVESTER BK 25.983 5/7/2029 EUR 46.76
NED WATERSCHAPBK 0.500 3/11/2025 CAD 49.61
NED WATERSCHAPBK 6.000 6/30/2045 EUR 73.76
Q-CELLS INTERNAT 1.375 2/28/2012 EUR 54.83
Q-CELLS INTERNAT 5.750 5/26/2014 EUR 53.91
RABOBANK 6.900 6/6/2017 RUB 92.18
RBS NV EX-ABN NV 2.910 6/21/2036 JPY 74.58
TEMIR CAPITAL 9.500 5/21/2014 USD 33.00
TURANALEM FIN BV 8.250 1/22/2037 USD 46.48
TURANALEM FIN BV 8.500 2/10/2015 USD 47.36
TURANALEM FIN BV 8.000 3/24/2014 USD 50.21
TURANALEM FIN BV 8.000 3/24/2014 USD 43.00
TURANALEM FIN BV 7.750 4/25/2013 USD 45.90
TURANALEM FIN BV 7.875 6/2/2010 USD 44.00
NORWAY
------
EKSPORTFINANS 0.500 5/9/2030 CAD 39.96
NORSKE SKOGIND 7.000 6/26/2017 EUR 61.84
RENEWABLE CORP 6.500 6/4/2014 EUR 71.63
POLAND
------
REP OF POLAND 3.220 8/4/2034 JPY 71.21
REP OF POLAND 2.648 3/29/2034 JPY 62.48
REP OF POLAND 3.300 6/16/2038 JPY 65.52
RUSSIA
------
BANK ST PETERS 8.100 4/9/2013 RUB 100.35
EUROKOMMERZ 16.000 6/18/2010 RUB 1.14
ROSSELKHOZBANK 11.500 9/27/2017 RUB 106.25
SPAIN
-----
BANCAJA EMI SA 2.755 5/11/2037 JPY 34.75
CEDULAS TDA A-6 4.250 4/10/2031 EUR 77.52
SWITZERLAND
-----------
UBS AG 13.300 5/23/2012 USD 3.46
UBS AG JERSEY 13.900 1/31/2011 USD 35.92
UBS AG JERSEY 14.640 1/31/2011 USD 38.31
UBS AG JERSEY 16.170 1/31/2011 USD 12.83
UBS AG JERSEY 10.000 2/11/2011 USD 61.78
UBS AG JERSEY 15.250 2/11/2011 USD 11.42
UBS AG JERSEY 11.000 2/28/2011 USD 67.55
UBS AG JERSEY 12.800 2/28/2011 USD 34.46
UBS AG JERSEY 11.330 3/18/2011 USD 18.08
UBS AG JERSEY 11.400 3/18/2011 USD 25.67
UBS AG JERSEY 10.990 3/31/2011 USD 30.99
UBS AG JERSEY 10.820 4/21/2011 USD 21.95
UBS AG JERSEY 11.030 4/21/2011 USD 21.12
UBS AG JERSEY 10.650 4/29/2011 USD 15.88
UBS AG JERSEY 16.160 3/31/2011 USD 44.96
UBS AG JERSEY 10.360 8/19/2011 USD 54.38
UBS AG JERSEY 9.000 6/11/2010 USD 53.80
UBS AG JERSEY 11.150 8/31/2011 USD 39.45
UBS AG JERSEY 9.500 8/31/2010 USD 59.80
UBS AG JERSEY 13.000 6/16/2011 USD 50.87
UBS AG JERSEY 9.350 9/21/2011 USD 61.02
UBS AG JERSEY 9.450 9/21/2011 USD 48.71
UBS AG JERSEY 9.000 8/13/2010 USD 58.25
UBS AG JERSEY 9.350 7/27/2010 USD 54.10
UBS AG JERSEY 9.000 7/19/2010 USD 53.60
UBS AG JERSEY 9.000 7/2/2010 USD 53.90
UBS AG JERSEY 3.220 7/31/2012 EUR 47.62
UBS AG LONDON 17.350 6/28/2010 EUR 73.20
UBS AG LONDON 12.210 6/28/2010 EUR 73.15
UBS AG LONDON 16.430 6/28/2010 EUR 73.15
UBS AG LONDON 17.550 6/28/2010 EUR 73.23
UBS AG LONDON 17.000 6/28/2010 EUR 73.15
UNITED KINGDOM
--------------
BANK OF SCOTLAND 2.359 3/27/2029 JPY 72.58
BARCLAYS BK PLC 7.610 6/30/2011 USD 53.15
BARCLAYS BK PLC 10.650 1/31/2012 USD 44.80
BARCLAYS BK PLC 8.550 1/23/2012 USD 11.55
BARCLAYS BK PLC 10.600 7/21/2011 USD 41.27
BARCLAYS BK PLC 9.000 6/30/2011 USD 44.71
BRADFORD&BIN BLD 4.910 2/1/2047 EUR 61.43
BRADFORD&BIN BLD 5.500 1/15/2018 GBP 44.94
BRADFORD&BIN PLC 7.625 2/16/2049 GBP 46.54
BRADFORD&BIN PLC 6.625 6/16/2023 GBP 44.90
BROADGATE FINANC 5.098 4/5/2033 GBP 71.97
EFG HELLAS PLC 6.010 1/9/2036 EUR 37.50
EFG HELLAS PLC 4.375 2/11/2013 EUR 72.67
ENTERPRISE INNS 6.375 9/26/2031 GBP 74.74
HBOS PLC 4.500 3/18/2030 EUR 72.72
INEOS GRP HLDG 8.500 2/15/2016 USD 73.03
INEOS GRP HLDG 7.875 2/15/2016 EUR 73.10
INEOS GRP HLDG 7.875 2/15/2016 EUR 72.97
LBG CAPITAL NO.1 6.439 5/23/2020 EUR 74.29
LBG CAPITAL NO.2 6.385 5/12/2020 EUR 74.18
NATL GRID GAS 1.771 3/30/2037 GBP 46.31
NBG FINANCE PLC 2.755 6/28/2035 JPY 35.86
NORTHERN ROCK 5.750 2/28/2017 GBP 60.72
NORTHERN ROCK 4.574 1/13/2015 GBP 72.43
OJSC BANK NADRA 9.250 6/28/2010 USD 32.50
PIRAEUS GRP FIN 4.000 9/17/2012 EUR 74.07
PUNCH TAVERNS 6.468 4/15/2033 GBP 70.77
ROYAL BK SCOTLND 4.243 1/12/2046 EUR 71.88
TXU EASTERN FNDG 6.750 5/15/2009 USD 2.38
TXU EASTERN FNDG 6.450 5/15/2005 USD 1.00
UNIQUE PUB FIN 6.464 3/30/2032 GBP 65.89
WESSEX WATER FIN 1.369 7/31/2057 GBP 23.18
*********
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. Joy A. Agravante, Valerie U. Pascual, Marites O.
Claro, Rousel Elaine T. Fernandez, Frauline S. Abangan and Peter
A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN 1529-2754.
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