TCREUR_Public/100624.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, June 24, 2010, Vol. 11, No. 123

                            Headlines



D E N M A R K

AMALIE I: Moody's Junks Rating on Series 1 Tranche C Notes


F I N L A N D

STORA ENSO: Fitch Affirms 'BB' Long-Term Issuer Default Rating
UPM KYMMENE: Fitch Upgrades Long-Term Issuer Default Rating to BB


F R A N C E

EC FINANCE: Moody's Assigns (P)'B2' Rating on EUR250 Mil. Notes
EC FINANCE: S&P Assigns 'B+' Rating on EUR250 Mil. Senior Notes
LE MONDE: Won't Consider New Bids as Bid Deadline Expires


G E R M A N Y

ARCANDOR AG: Berggruen Junks Highstreet's Rent Offer for Karstadt
GENERAL MOTORS: Aims to Complete Opel Restructuring by Year-End
GENERAL MOTORS: Overtakes Fiat in Germany as Top Discounter
SEB AG: Moody's Retains Negative Outlook on D+ BFSR
WESTLB AG: EU Extends "Temporary Approval" for State Aid


G R E E C E

ARIADNE SA: Moody's Downgrades Note Ratings to Ba1
EMPORIKI BANK: Credit Agricole to Take EUR400 Million Writedown
TITLOS PLC: Moody's Downgrades Note Ratings to Ba2
WIND HELLAS: S&P Reinstates 'CCC+' Rating on EUR1.22 Bil. Notes
WIND HELLAS: S&P Downgrades Corporate Credit Ratings to 'CC'


I R E L A N D

ALLIED IRISH: Polish Government Backs PKO Bid for Bank Zachodni
AVOCA CLO: S&P Downgrades Credit Rating on Class D Notes to 'B-'
DANUBE DELTA: S&P Cuts Ratings on Two Classes of Notes to 'CCC-'
SMURFIT KAPPA: Fitch Affirms 'BB' Long-Term Issuer Default Rating


I T A L Y

BANCA MONTE: Moody's Downgrades Bank Strength Rating to 'D'
FIAT SPA: Workers at Pomigliano Plant Accept New Work Practices
SNAI SPA: S&P Junks Corporate Credit Rating From 'B-'


K A Z A K H S T A N

HALYK BANK: Returns KZT60 Billion Deposit to State Welfare Fund


L A T V I A

* LATVIA: President Valdis Zatlers Vetoes Insolvency Reform Bill


N E T H E R L A N D S

CASE NEW: Moody's Assigns 'Ba3' Rating on US$1 Billion Notes
CASE NEW: S&P Assigns 'BB+' Rating on US$1 Bil. Senior Notes


R U S S I A

CB MOSKOMMERTSBANK: Fitch Gives Stable Outlook; Keeps 'CCC' Rating


S W E D E N

SWEDBANK AB: Moody's Changes Outlook on 'D+' Rating to Stable


T U R K E Y

ANADOLU EFES: S&P Gives Positive Outlook; Affirms 'BB' Rating


U N I T E D   K I N G D O M

BEMROSEBOOTH: Marks & Spencer Denies Role in Company's Woes
BL SUPERSTORES: S&P Affirms CCC- Ratings on Two Classes of Notes
BRITISH AIRWAYS: Has Deal to Plug GBP3.7 Billion Pension Deficit
CRAIN'S MANCHESTER: Lack of Advertising Prompts Closure
PEDERSEN UK: In Administration; Crowne Plaza Business as Usual

* UNITED KINGDOM: To Impose Levy on Bank Balance Sheets


X X X X X X X X

* EUROPE: Eurozone Banks Face Increasing Funding Problems
* EUROPE: Countries That Violate Debt Rules May Face Bond Levy

* Upcoming Meetings, Conferences and Seminars




                         *********


=============
D E N M A R K
=============


AMALIE I: Moody's Junks Rating on Series 1 Tranche C Notes
----------------------------------------------------------
Moody's Investors Service has downgraded these notes issued by
Amalie I Limited:

  -- EUR94M Series 1 Tranche A Floating Rate Secured Senior Notes
     due 2015 Notes, Downgraded to Ba2; previously on Jan 13, 2010
     Downgraded to Ba1 and Remained On Review for Possible
     Downgrade

  -- EUR38M Series 1 Tranche B Floating Rate Secured Mezzanine
     Notes due 2015 Notes, Downgraded to B3; previously on Jan 13,
     2010 Downgraded to B1 and Remained On Review for Possible
     Downgrade

  -- EUR33M Series 1 Tranche C Floating Rate Secured Junior Notes
     due 2015 Notes, Downgraded to Caa2; previously on Jan 13,
     2010 Downgraded to B3 and Remained On Review for Possible
     Downgrade

This transaction is a static cash CDO of junior subordinated loans
to Danish commercial and savings banks.  The portfolio is non-
granular, referencing 16 performing issuers, with the three
largest exposures representing 49.0% of the portfolio.

The downgrades reflect widespread deterioration in the outstanding
portfolio, as indicated by the updated credit estimates Moody's
uses to assess the credit quality of the majority of the
portfolio.  This deterioration is reflected in the change in the
average rating of the pool from Ba3 to B2 once stresses for non-
granular pools have been incorporated.

The deterioration of the portfolio has been driven by the negative
performance of the Danish Banking Sector in the context of the
global financial crisis.  In response to the financial crisis, the
Danish government created two bank packages that have been
providing support to the banks.  Bank Package I is due to expire
on 30 September 2010, which Moody's expects will have a negative
impact for Danish banks, in particular for weaker institutions
which may see some depositors withdraw their funds in favor of
stronger banks.  While this may be mitigated by Bank Package II,
which offers government guarantees on senior debt for up to three
years, the subordinated debt of Danish banks remains likely to
suffer large losses in the event of insolvency.

The credit deterioration of the portfolio also reflects the
difference in performance between senior and more junior debt
since the beginning of the crisis.  In addition, it incorporates
Moody's revised analytical framework on subordinated debts (see
press release titled "Moody's Reviews Bank Hybrids, Subordinated
Debt for Downgrade", 18 November 2009), whereby the Baseline
Credit Assessments of the issuing banks have been notched down by
two notches to account for the subordinated nature of the loans in
the pool.

As credit estimates do not carry credit indicators such as ratings
reviews and outlooks, a stress of a quarter notch-equivalent
downgrade was applied to each of these estimates.  Also applied
was Moody's policy on credit estimates in concentrated pools,
which is described in the report titled "Updated Approach to the
Usage of Credit Estimates in Rated Transactions" (October 2009).

Because the portfolio references a low number of generally small
Danish banks and the concerns listed above surrounding the Danish
banking industry, Moody's believes the likely correlation in
defaults between issuers in the pool is likely to be high.
Correlation was assumed to be 50%, though a stress case of 75% was
also looked at.  Although the issuers have an economic incentive
to repay the loans at the five-year call option (28 March 2012),
Moody's also considered the likelihood that the loans would not be
redeemed at the end of their fifth year due to financing
difficulties of the underlying banks, and found the impact to be
consistent with the revised rating levels.


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


STORA ENSO: Fitch Affirms 'BB' Long-Term Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has taken various rating actions on three European
paper & forest products companies, following an analysis of their
operational and financial profiles over the next two to three
years.

Stora Enso Oyj:

  -- Long-term Issuer Default Rating affirmed at 'BB'; Outlook
     revised to Stable from Negative

  -- Senior unsecured rating affirmed at 'BB'

  -- Short-term IDR affirmed at 'B'

UPM Kymmene Oyj:

  -- Long-term IDR upgraded to 'BB' from 'BB-'; Outlook Stable
  -- Senior unsecured rating upgraded to 'BB' from 'BB-'
  -- Short-term IDR affirmed at 'B'

Smurfit Kappa Group plc and related entities:

  -- Smurfit Kappa Group's Long-term IDR affirmed at 'BB'; Outlook
     Stable

  -- Smurfit Kappa Acquisitions' senior secured facilities
     affirmed at 'BB+'

  -- Smurfit Kappa Acquisitions' guaranteed senior secured notes
     affirmed at 'BB+'

  -- Smurfit Kappa Funding's senior subordinated notes due 2015
     affirmed at 'BB-'

  -- Smurfit Kappa Treasury Funding's debenture notes due 2025
     affirmed at 'BB+'

The rating actions reflect Fitch's view that the restructuring,
cost saving and cash preservation measures implemented by the
companies in FY09 have yielded positive results and should
position the companies on firmer ground to face the new challenges
arising in FY10.

Recovery in demand and pricing for certain paper grades, packaging
and wood has supported the year-on-year improvements in Q110
results and Fitch expects those trends to continue across FY10.
In contrast, market fundamentals remain challenging for newsprint,
magazine paper and, to a lesser extent, coated fine paper, as
demand is not expected to pick up sufficiently to absorb the
continuing overcapacity.

Fitch views input cost pressure as a key risk in 2010.  Input
costs (fibre, energy, chemicals) have risen over the past few
months and are not expected to abate in the near term.  Producers'
ability to pass those costs through to their customers remains
highly correlated to the supply-demand balance in each sub-sector.
While weaker profitability is expected in some publication paper
grades, Fitch believes that Stora Enso and UPM's portfolio
diversification will support higher levels of operating earnings
and cash flow generation overall.  Margin pressure should also be
partly offset by the cost savings realized in 2009 and planned for
2010.  Fitch anticipates further restructuring measures in the
publication paper sector.

Stora Enso and UPM have net long positions in chemical pulp
(around 900kt and 100-200kt respectively) and should benefit from
the current record high pulp prices.  Strong demand from China,
supply disruptions in Chile and low inventory levels on the back
of widespread capacity closures in 2009 are supporting pulp
prices.  While Fitch remains cautious about the sustainability of
the current price levels, tight market conditions are likely to
persist until end-2010.

Demand for paper-based packaging has been trending up and new
containerboard capacity has not resulted in oversupply as
previously expected.  Higher recovered paper prices, supply
discipline and demand recovery have so far supported pricing
momentum in containerboard, kraftliner and corrugated packaging.
Those trends should benefit both SKG and Stora Enso.  SKG's
ratings are further supported by its leading market positions,
integrated operations, exposure to recession-resilient markets and
strong presence in Latin America.

EP&FP players have been slow to react to the structural weaknesses
affecting their core publication paper operations (substitution by
electronic media and competition from low-cost production) and are
now constrained in their ability to address those issues by low
levels of profitability and cash flow generation.  When looking at
companies operating in the sector in Europe, Fitch is increasingly
focusing on their capacity/ability to transform their business and
operational model without materially impacting their already weak
balance sheet.

The upgrade of UPM reflects the margin recovery observed since the
sharp deterioration in performance in Q110, and the slight de-
leveraging achieved in FY09, despite the acquisition of assets in
Uruguay.  Performance should be supported by stronger results in
the restructured labels division, recovery in some of the
specialty paper grades, forest & timber division and, to a lesser
extent, in the pulp division.  Fitch expects leverage to reduce
slightly over the near term and to remain on par with peers'
levels at or below 4x.

Capex guidance remains conservative compared with historical
levels.  Fitch's concerns regarding the potential impact of the
prolonged low investment levels on mid- to long-term
competitiveness are partly offset by the companies' progress
towards securing low-cost fiber in Latin-America in FY09.  UPM's
capex is expected to reach EUR300 million in FY10, up from
EUR236 million in FY09 (or 34% of depreciation).  In mitigation,
Fitch notes that the company exchanged 30% of its 47% stake in
Metsa-Botnia for a 44% additional participation in Fray Bentos, a
pulp mill with a capacity of 1.1mtpa in Uruguay in which it had
previously held a 47% share.  In effect, UPM traded 700,000T/year
of pulp in Finland for 400,000T/year of pulp in Uruguay.  This
increased the portion of pulp produced in Latin America to 31%
from 12% previously and should improve UPM's overall cost
position.  Fray Bentos was consolidated in December 2009.

Stora Enso plans to spend EUR400 million in capex in FY10 compared
with EUR388 million in 2009 (or 70% of depreciation).  The company
partnered with Chilean producer Celulosa Arauco y Constitution
S.A.  ('BBB+'/Stable) to buy additional forest assets in Uruguay,
consisting of approximately 130,000ha of owned land and
plantations, and a pulp mill site currently being considered for
development.  In its forecasts for Stora Enso, Fitch has run
scenarios assuming investments in a new 1mtpa-1.5mtpa pulp mill
over 2011-2013 in Uruguay.

SKG plans to restore capex to historical levels (around 90% of
depreciation) in FY10 which Fitch deems adequate.  The company
continues to seek bolt-on acquisitions in the packaging sector and
Fitch takes comfort in its strong track record in integrating
previous acquisitions and realising announced synergies.

Liquidity is adequate for all companies.  Stora Enso is facing the
largest maturities in 2010 (EUR788 million -- bonds primarily) but
strong working capital relief and cash preservation measures have
allowed it to generate positive free cash flow (FCF) of
EUR787 million for the first time since 2006 and to build up cash
positions of EUR890 million at FYE09.  Fitch expects part of those
maturities to be refinanced.  In FY09, the company raised
EUR742 million of new debt, including EUR562m on the bond markets.
Stora also has an undrawn EUR1.4bn RCF (no covenants) maturing in
2012.

SKG continues to face minimal debt repayments until 2012.  It
raised EUR1 billion worth of senior secured notes on capital
markets, the proceeds of which were used to repay part of its
existing senior secured facilities.  Liquidity is strong and was
supported by cash positions of EUR601 million at FYE09 and
available RCFs of EUR152 million and EUR373 million maturing in
2012 and 2013 respectively.  Covenant headroom is expected to
remain adequate under Fitch's forecasts.

UPM did not tap into the bond market in 2009 but refinanced its
EUR1.5 billion RCF with a new EUR825 million three-year RCF.  The
company also has access to a five-year EUR1 billion RCF (no
covenants).  Both mature in March 2012.  At FYE09, UPM counted on
cash balances of EUR438 million compared with maturities of
EUR167 million in FY10.

Fitch expects to publish a special report outlining some key
financial and operational outcomes from the sector review over the
next month.


UPM KYMMENE: Fitch Upgrades Long-Term Issuer Default Rating to BB
-----------------------------------------------------------------
Fitch Ratings has taken various rating actions on three European
paper & forest products companies, following an analysis of their
operational and financial profiles over the next two to three
years.

Stora Enso Oyj:

  -- Long-term Issuer Default Rating affirmed at 'BB'; Outlook
     revised to Stable from Negative

  -- Senior unsecured rating affirmed at 'BB'

  -- Short-term IDR affirmed at 'B'

UPM Kymmene Oyj:

  -- Long-term IDR upgraded to 'BB' from 'BB-'; Outlook Stable
  -- Senior unsecured rating upgraded to 'BB' from 'BB-'
  -- Short-term IDR affirmed at 'B'

Smurfit Kappa Group plc and related entities:

  -- Smurfit Kappa Group's Long-term IDR affirmed at 'BB'; Outlook
     Stable

  -- Smurfit Kappa Acquisitions' senior secured facilities
     affirmed at 'BB+'

  -- Smurfit Kappa Acquisitions' guaranteed senior secured notes
     affirmed at 'BB+'

  -- Smurfit Kappa Funding's senior subordinated notes due 2015
     affirmed at 'BB-'

  -- Smurfit Kappa Treasury Funding's debenture notes due 2025
     affirmed at 'BB+'

The rating actions reflect Fitch's view that the restructuring,
cost saving and cash preservation measures implemented by the
companies in FY09 have yielded positive results and should
position the companies on firmer ground to face the new challenges
arising in FY10.

Recovery in demand and pricing for certain paper grades, packaging
and wood has supported the year-on-year improvements in Q110
results and Fitch expects those trends to continue across FY10.
In contrast, market fundamentals remain challenging for newsprint,
magazine paper and, to a lesser extent, coated fine paper, as
demand is not expected to pick up sufficiently to absorb the
continuing overcapacity.

Fitch views input cost pressure as a key risk in 2010.  Input
costs (fibre, energy, chemicals) have risen over the past few
months and are not expected to abate in the near term.  Producers'
ability to pass those costs through to their customers remains
highly correlated to the supply-demand balance in each sub-sector.
While weaker profitability is expected in some publication paper
grades, Fitch believes that Stora Enso and UPM's portfolio
diversification will support higher levels of operating earnings
and cash flow generation overall.  Margin pressure should also be
partly offset by the cost savings realized in 2009 and planned for
2010.  Fitch anticipates further restructuring measures in the
publication paper sector.

Stora Enso and UPM have net long positions in chemical pulp
(around 900kt and 100-200kt respectively) and should benefit from
the current record high pulp prices.  Strong demand from China,
supply disruptions in Chile and low inventory levels on the back
of widespread capacity closures in 2009 are supporting pulp
prices.  While Fitch remains cautious about the sustainability of
the current price levels, tight market conditions are likely to
persist until end-2010.

Demand for paper-based packaging has been trending up and new
containerboard capacity has not resulted in oversupply as
previously expected.  Higher recovered paper prices, supply
discipline and demand recovery have so far supported pricing
momentum in containerboard, kraftliner and corrugated packaging.
Those trends should benefit both SKG and Stora Enso.  SKG's
ratings are further supported by its leading market positions,
integrated operations, exposure to recession-resilient markets and
strong presence in Latin America.

EP&FP players have been slow to react to the structural weaknesses
affecting their core publication paper operations (substitution by
electronic media and competition from low-cost production) and are
now constrained in their ability to address those issues by low
levels of profitability and cash flow generation.  When looking at
companies operating in the sector in Europe, Fitch is increasingly
focusing on their capacity/ability to transform their business and
operational model without materially impacting their already weak
balance sheet.

The upgrade of UPM reflects the margin recovery observed since the
sharp deterioration in performance in Q110, and the slight de-
leveraging achieved in FY09, despite the acquisition of assets in
Uruguay.  Performance should be supported by stronger results in
the restructured labels division, recovery in some of the
specialty paper grades, forest & timber division and, to a lesser
extent, in the pulp division.  Fitch expects leverage to reduce
slightly over the near term and to remain on par with peers'
levels at or below 4x.

Capex guidance remains conservative compared with historical
levels.  Fitch's concerns regarding the potential impact of the
prolonged low investment levels on mid- to long-term
competitiveness are partly offset by the companies' progress
towards securing low-cost fiber in Latin-America in FY09.  UPM's
capex is expected to reach EUR300 million in FY10, up from
EUR236 million in FY09 (or 34% of depreciation).  In mitigation,
Fitch notes that the company exchanged 30% of its 47% stake in
Metsa-Botnia for a 44% additional participation in Fray Bentos, a
pulp mill with a capacity of 1.1mtpa in Uruguay in which it had
previously held a 47% share.  In effect, UPM traded 700,000T/year
of pulp in Finland for 400,000T/year of pulp in Uruguay.  This
increased the portion of pulp produced in Latin America to 31%
from 12% previously and should improve UPM's overall cost
position.  Fray Bentos was consolidated in December 2009.

Stora Enso plans to spend EUR400 million in capex in FY10 compared
with EUR388 million in 2009 (or 70% of depreciation).  The company
partnered with Chilean producer Celulosa Arauco y Constitution
S.A.  ('BBB+'/Stable) to buy additional forest assets in Uruguay,
consisting of approximately 130,000ha of owned land and
plantations, and a pulp mill site currently being considered for
development.  In its forecasts for Stora Enso, Fitch has run
scenarios assuming investments in a new 1mtpa-1.5mtpa pulp mill
over 2011-2013 in Uruguay.

SKG plans to restore capex to historical levels (around 90% of
depreciation) in FY10 which Fitch deems adequate.  The company
continues to seek bolt-on acquisitions in the packaging sector and
Fitch takes comfort in its strong track record in integrating
previous acquisitions and realizing announced synergies.

Liquidity is adequate for all companies.  Stora Enso is facing the
largest maturities in 2010 (EUR788 million -- bonds primarily) but
strong working capital relief and cash preservation measures have
allowed it to generate positive free cash flow (FCF) of
EUR787 million for the first time since 2006 and to build up cash
positions of EUR890 million at FYE09.  Fitch expects part of those
maturities to be refinanced.  In FY09, the company raised
EUR742 million of new debt, including EUR562m on the bond markets.
Stora also has an undrawn EUR1.4bn RCF (no covenants) maturing in
2012.

SKG continues to face minimal debt repayments until 2012.  It
raised EUR1 billion worth of senior secured notes on capital
markets, the proceeds of which were used to repay part of its
existing senior secured facilities.  Liquidity is strong and was
supported by cash positions of EUR601 million at FYE09 and
available RCFs of EUR152 million and EUR373 million maturing in
2012 and 2013 respectively.  Covenant headroom is expected to
remain adequate under Fitch's forecasts.

UPM did not tap into the bond market in 2009 but refinanced its
EUR1.5 billion RCF with a new EUR825 million three-year RCF.  The
company also has access to a five-year EUR1 billion RCF (no
covenants).  Both mature in March 2012.  At FYE09, UPM counted on
cash balances of EUR438 million compared with maturities of
EUR167 million in FY10.

Fitch expects to publish a special report outlining some key
financial and operational outcomes from the sector review over the
next month.


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


EC FINANCE: Moody's Assigns (P)'B2' Rating on EUR250 Mil. Notes
---------------------------------------------------------------
Moody's assigned a provisional (P)B2 rating (LGD 4, 58%) to the
issuance of up to EUR250 million senior secured notes due in 2017
to be issued by EC Finance plc, a newly formed special purpose
vehicle owned by a charitable trust and guaranteed by Europcar
International S.A.S.U., a subsidiary of Europcar Groupe S.A.  At
the same time, Moody's affirmed Europcar Groupe S.A.'s B2
corporate family rating and probability of default rating, the B3
rating of the company's senior subordinated secured notes and the
Caa1 rating of its senior subordinated unsecured notes.  The
outlook was changed from negative to stable.

"The outlook change to stable reflects the recent stabilization of
Europcar's performance and the expectation of more favorable
market conditions in the European rental market which together
with benefits of cost reduction activities should support the
generation of credit metrics more in line with the B2 rating
category going forward", said Christian Hendker, Moody's lead
analyst for Europcar.  "The outlook change to stable furthermore
considers the progress in addressing refinancing challenges of
Europcar's fleet debt, as the proceeds of the new senior secured
notes together with a new senior asset revolving facility will be
applied to reduce outstanding fleet debt under a bridge to asset
lending facility which matures in 2011", Mr. Hendker continued.

The outlook assumes that two pronged refinancing plan constituting
of the new rated bond and a bank facility will be executed as
planned.  Failure in timely completion could threaten the outlook.
The proceeds of the new EUR250 million senior secured notes will
be released from an escrow account subject to certain conditions,
particularly the concurrent refinancing of a EUR1.8 billion bridge
to asset facility which matures in 2011 with a new senior asset
revolving credit facility of around EUR1.3 billion due in 2014,
which is contingent upon the successful issuance of the new notes,
in addition to other conditions.  The new senior asset revolving
credit facility may be increased up to a maximum amount of
EUR1.7 billion upon the accession of new lenders.

The proceeds of the notes will be invested into a loan issued by
the special purpose entity Securitifleet Holding Sarl, a holding
company of various Securitifleet subsidiary companies, whose
primary function is the purchase and ownership of most of
Europcar's rental fleet, which are leased to a number of
Europcar's operating companies.  The lease rent each Securitifleet
company receives from operating companies and from the proceeds of
the sale-back of vehicles to manufacturers are applied to repay
principal and interests.

The proceeds of the EUR250 million senior secured notes, together
with drawings under a new senior asset revolving facility with a
commitment of EUR1.3 billion due in 2014 and issued at the level
of Securitifleet Holding Sarl, will be advanced to various
Securitifleet subsidiaries to repay the outstandings under the
existing bridge to asset facility.

The new senior secured notes will benefit from a senior unsecured
guarantee by the holding Europcar International S.A.S.U., and will
benefit from (i) a first ranking pledge over the loans granted to
Securitifleet Sarl, and (ii) a second ranking pledge over loan
receivables arising from the advances to various Securitifleet
companies, junior to the claims of the new senior asset revolving
credit facility.  Therefore the notes indirectly benefit from
second ranking pledge on fleet assets and receivables held by
Securitifleet subsidiaries, which value is protected by a loan to
value covenant.

The B2 rating outcome for the senior secured notes reflects its
structural superior positioning as well as its relatively strong
security package compared to the outstanding subordinated secured
notes (rated B3) and the outstanding subordinated unsecured notes
(rated Caa1) both issued at the level of the holding company
Europcar Groupe S.A. The instrument ranks junior relative to
sizeable senior asset revolving credit facility, as the new notes
are only secured on a second-lien basis on some fleet assets.  In
addition, the new senior secured notes rank junior relative to the
EUR350 million revolving credit facility, which benefits from a
relatively stronger collateral package, considering its first-lien
collateral on bank accounts, other fleet receivables, trademarks
and share pledges, as well as guarantees by the majority of
Europcar's operating entities.

The affirmation of the B2 CFR and PDR with an outlook change to
stable reflects a gradually improved performance, supported by
significant fleet adjustments in line with lower demand, cost
structure improvements but also a more favorable pricing power
which Moody's expected to be sufficient to recover further
inflating fleet holding costs which should enable Europcar to
generate metrics in line with the B2 rating category going
forward.  While Moody's however notes that following the
refinancing interest rates will rise, adding pressure on the
recovery of interest coverage ratios going forward and requiring
constant operating performance improvements.

The stable rating outlook is based on the expectation that the
operating performance will further recover, reflected in an EBIT-
to-Interest Coverage ratio above 1.0x, and an improved Debt to
EBITDA below 5.0x.  At the same time, the outlook change to stable
reflects the expected refinancing of fleet debt at competitive
conditions, as outlined in the proposed transaction.

Moody's could downgrade the ratings over the next quarters if
Europcar cannot mitigate the impact of lower volumes on credit
metrics, as evidenced by the EBIT to interest ratio remaining
below 1.0x, if debt to EBITDA does not remain below 6.0x (as
adjusted by Moody's and impacted by seasonality), a weakening of
the solid liquidity cushion or fundamental changes in fleet
purchase conditions.

Moody's could upgrade the ratings if Europcar returns to a track
record of growth of operating performance and credit metrics
improvements, as evidenced by EBIT to interest above 1.3x for a
sustained period or if debt to EBITDA improves towards 5.0x.

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

Assignments:

Issuer: EC Finance plc

  -- Senior Secured Regular Bond/Debenture, Assigned (P)B2, LGD 4,
     58%

Outlook Actions:

Issuer: Europcar Groupe S.A.

  -- Outlook, Changed To Stable From Negative

LGD Assessment:

Issuer: Europcar Groupe S.A.

  -- Subordinate Regular Bond/Debenture, rated Caa1, LGD
     Assessment changed to LGD6, 95% from LGD6, 92%

  -- Senior Subordinated Regular Bond/Debenture, rated B3, LGD
     Assessment changed to LGD5, 77% from LGD4, 69%

The last rating action was on December 2, 2008, when Moody's
downgraded Europcar's CFR and PDR to B2 from B1 with a negative
outlook.

Headquartered in Paris, France, Europcar is one of the leading
European rental car companies with reported sales of
EUR1.9 billion in 2009.


EC FINANCE: S&P Assigns 'B+' Rating on EUR250 Mil. Senior Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
preliminary 'B+' debt rating to the proposed EUR250 million senior
secured notes due 2017 to be issued by special purpose vehicle EC
Finance PLC, and guaranteed by Europcar International S.A.S.U., a
subsidiary of the France-based car rental firm Europcar Groupe
S.A. (B+/Negative/--).  At the same time, S&P assigned a
preliminary recovery rating of '4' to this debt, indicating S&P's
expectation of average (30%-50%) recovery for creditors in the
event of a payment default.

In addition, S&P placed the 'B+' issue rating on Europcar's
EUR425 million subordinated secured floating-rate notes due 2013
and the 'B' issue rating on Europcar's EUR375 million subordinated
unsecured notes due 2014 on CreditWatch with negative
implications.  Pending resolution of the CreditWatch, the recovery
ratings of '4' on the FRNs and '5' on the unsecured notes remain
unchanged.

The CreditWatch placement reflects S&P's view that if Europcar
completes the refinancing as proposed, the recovery prospects on
the FRNs and the unsecured notes will deteriorate due to the
increased amount of debt ranking ahead of them.  If the
refinancing is completed as proposed, S&P expects to lower the
issue ratings on both the FRNs and unsecured notes by one notch to
'B' and 'B-', respectively.  S&P also expect to revise the
recovery ratings on these instruments downward by one category, to
'5' and '6', respectively, indicating S&P's expectation of modest
(10%-30%) recovery for the FRNs and negligible (0%-10%) recovery
for the unsecured notes.

S&P also affirmed the 'BB-' issue rating on Europcar's
EUR350 million senior secured five-year revolving credit facility
due 2013.  The recovery rating on this instrument is '2',
indicating S&P's expectation of substantial (70%-90%) recovery in
the event of a payment default.  Although S&P's estimated nominal
recovery percentage is higher than the rating threshold, the
recovery rating is capped according to its criteria in order to
reflect its opinion of France's insolvency regime as relatively
unfriendly for creditors.

Initially, proceeds from the issuance of the proposed notes will
be held in escrow, subject, among other things, to the successful
raising of a new senior asset revolving facility (SARF).  The
documentation indicates that once the combined proceeds of both
the proposed notes and the SARF are sufficient to refinance
existing senior secured fleet debt, and once the other escrow
conditions are met, the escrow proceeds will be released.
According to the documentation, failure to complete the
refinancing will result in the proposed notes being repaid at par
plus accrued interest.

The ratings on the proposed notes are preliminary because the
terms of the new SARF are not yet finalized.  S&P's analysis is
based on preliminary information and documentation and
incorporates certain assumptions that S&P made based on the draft
documentation and on the proposed structure at closing.

The preliminary issue and recovery ratings reflect S&P's simulated
default scenario, under which a payment default occurs in 2013.
They also reflect the assumed reorganization of Europcar on a
going-concern basis, and a stressed valuation of about
EUR700 million.  This amount is very sensitive to S&P's
assumptions regarding the stresses on the value of the Europcar
vehicle fleet assets at default, and demonstrates a high degree of
volatility.  S&P assume that in addition to the proposed notes'
covenant of 95% loan to value, the lenders of the SARF would
maintain a 65% loan-to-value restriction on the path to default.
S&P also assume that apart from the SARF, there will be no
material liabilities ranking senior to the proposed notes in their
claim on the fleet-asset collateral at default.

For the purposes of meeting ongoing payments of interest and
principal, the issuer of the proposed notes benefits from a
corporate guarantee from Europcar.  However, in the event of a
default, the recovery prospects on the proposed notes will be
partly determined by the value of claims over the pledged fleet
assets.

Therefore, for the purposes of the preliminary recovery rating on
the proposed notes, S&P assume that noteholders achieve a direct
pass-through of the economic benefit of the loan facility to
Securitifleet Holding S.A. (not rated).  The final rating will
depend on S&P's review of the final documentation to confirm,
among other things, its view that a pass-through can be achieved.
S&P believes that in case of material changes to the volume of
debt issued, changes to the legal or capital structure affecting
the pass-through mechanisms, or the amount of debt ranking senior
to the proposed notes, the ratings on the proposed notes and on
the existing Europcar notes would be adversely affected and could
face a downgrade of one or two notches.  S&P also believe that a
more formal securitization of the fleet could have a materially
detrimental effect on the recovery prospects for the proposed
notes compared with the initial proposed structure.

S&P believes that the FRNs and the unsecured notes would be
adversely affected by the issuance of the proposed notes because,
in S&P's view, holders of the proposed notes would have to rely on
corporate assets for the material part of their recoveries, and
would rank senior to both the nonguaranteed part of the FRNs'
claim and to the claim of the unsecured notes on nonfleet-related
assets.  The increased level of subordination would, in S&P's
view, leave recovery prospects for the FRNs even more dependent on
the value of Europcar's intangible assets and goodwill in the
event of a default.

With regard to the corporate credit rating on Europcar, S&P could
revise the outlook to stable on the successful completion of the
planned refinancing of the existing senior secured fleet loan, so
long as S&P was to have more visibility on a potential recovery of
demand in the car rental industry.  Evidence of such a recovery
could be the sustained positive operating trend in the second and
third quarters of 2010.

                        Recovery Analysis

S&P understands that the issuer of the proposed notes, EC Finance,
will use the proceeds to fully fund a new subordinated secured
proceeds loan to Securitifleet Holding S.A. S&P anticipate that
Securitifleet Holding will use the funds from the proceeds loan to
repay part of the existing senior secured fleet financing debt.

Although the holders of the proposed notes do not have direct
recourse to the Europcar vehicle fleet assets, S&P believes that
they should benefit indirectly from the security package granted
by Securitifleet entities -- owners of the fleet assets -- to
Securitifleet Holding.  S&P understands that Securitifleet Holding
will pledge its rights in the security package to EC Finance to
secure Securitifleet Holding's obligations under the proceeds
loan.  S&P understands that EC Finance will then pledge its rights
to the security granted by Securitifleet Holding to the
noteholders.  However, in light of the complexity of these
intercompany loans and security arrangements and the fact that EC
Finance, as issuer of the proposed notes, must rely on the
Securitifleet entities to sell the fleet assets and pass the
enforcement proceeds to Securitifleet Holding and then onto EC
Finance, S&P see a potential risk that the noteholders will not
necessarily receive any cash from the sale of the fleet assets or
may face significant delays in receiving any payout.  If this were
to happen, the recoveries for the proposed notes could be lower
than those suggested by the '4' preliminary recovery rating.

To calculate recovery prospects for holders of the proposed notes,
S&P assumes that the unsecured guarantee from ECI provides
noteholders with an unsecured claim on the nonfleet assets.  S&P
believes that such a claim would rank behind both the secured
claim of the RCF lenders and the part of the FRN lenders' claim
that is guaranteed by operating subsidiaries.  (These operating
subsidiaries generated about 50% of consolidated revenues in
2009.) Furthermore, S&P believes that the proposed notes would
rank senior both to the remainder of the FRN lenders' claim that
is not guaranteed by the operating subsidiaries, and to the
holders of the unsecured notes.

S&P believes that the subordinated status of the proposed notes --
ranking behind both the SARF in the fleet-financing structure and
the RCF in the corporate waterfall -- as well as material
variability of the residual value in the fleet-related assets
after repayment of the SARF, could together lead to high
volatility of recovery prospects for holders of the proposed
notes, compared with S&P's indicated recovery range.

In S&P's view, recovery prospects for the holders of the proposed
notes would be limited by: high sensitivity to assumptions
regarding stresses on the fleet assets at the hypothetical point
of default; a lack of control in enforcement on the fleet
collateral due to subordination to the SARF; and a possible delay
in the repossession of the fleet at default because of S&P's view
of France, Spain, and Italy as relatively creditor-unfriendly
jurisdictions in which enforcement would likely take place.

                           Ratings List

                           New Ratings

                          EC Finance PLC

       EUR250 mil. senior secured (proposed)*    B+ (prelim)
         Recovery Rating                         4

           Ratings Affirmed; CreditWatch/Outlook Action

                       Europcar Groupe S.A.

   Senior Secured                         BB-                BB-
   Recovery Rating                        2                  2

   Senior Secured                         B+/Watch Neg       B+
   Recovery Rating                        4                  4

   Subordinated                           B/Watch Neg        B
   Recovery Rating                        5                  5

          * Guaranteed by Europcar International S.A.S.U.


LE MONDE: Won't Consider New Bids as Bid Deadline Expires
---------------------------------------------------------
Matthew Campbell and Maria Kolesnikova at Bloomberg News report
that Le Monde said it hasn't received a formal offer from Russian
billionaire Gleb Fetisov but it wouldn't consider it if one
arrived.

According to Bloomberg, Le Monde spokeswoman Anne Hartenstein said
the deadline for offers to recapitalize the newspaper has passed,
and new bids aren't being taken.

Bloomberg relates Mr. Fetisov, ranked by Forbes magazine as
Russia's 42nd richest man, stated on his Web site on June 21 that
he was bidding for control of the afternoon daily and pledged to
make it profitable and not interfere in editorial policies.

"I have a clear vision how to restructure the debt and make money
without interfering with the journalism," Bloomberg quoted
Mr. Fetisov as saying.

Bloomberg notes the newspaper said Monday it received two bids,
one from a trio of investors that includes Iliad SA founder Xavier
Niel and Berge.  The other bidder is a group that includes France
Telecom SA, Promotora de Informaciones SA, and Groupe SFA PAR, the
parent of the Nouvel Observateur weekly, Bloomberg discloses.

As reported by the Troubled Company Reporter-Europe on June 23,
2010, The Financial Times said Le Monde will choose next week a
new owner from two rival consortia after France Telecom agreed to
inject EUR50 million to EUR60 million (US$62 million to US$74
million) into the daily if its bid wins.  The FT disclosed Le
Monde's shareholders will examine the bids on Friday, and the
newspaper's supervisory board will choose a new owner on June 28.

On June 7, 2010, the Troubled Company Reporter-Europe, citing the
FT, reported 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.

Le Monde is a French newspaper.


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


ARCANDOR AG: Berggruen Junks Highstreet's Rent Offer for Karstadt
-----------------------------------------------------------------
German billionaire Nicolas Berggruen has rejected the latest rent
proposal for Karstadt properties made by property owner
Highstreet, Dow Jones Daily Bankruptcy Review reports, citing
spokesmen for Mr. Berggruen and Highstreet.

As reported by the Troubled Company Reporter-Europe on June 22,
2010, Dow Jones Newswires said Mr. Berggruen's takeover plan for
Arcandor AG's insolvent German retailer Karstadt includes a 10%
share of Karstadt's return on equity in the form of warrants for
its Highstreet real estate property owners in exchange for
agreeing to lower rents.  Dow Jones disclosed Mr. Berggruen
additionally wants to amend Karstadt's master lease agreement,
which would give him the freedom to separate some segments, such
as sporting goods, into individual units.  Dow Jones noted the
people said Mr. Berggruen's plan has received some support from
Karstadt's creditors but the investor remains in tense
negotiations with Goldman Sachs Group, Inc.  Goldman Sachs leads
the Highstreet real estate consortium which is a major investor in
Karstadt properties, according to Dow Jones.

                       Highstreet Proposal

As reported by the Troubled Company Reporter-Europe on June 10,
2010, Reuters said Highstreet warned Mr. Berggruen that the
Karstadt could still be liquidated if the German billionaire did
not accept its deal on rents.  Reuters disclosed Highstreet said
it had an offer to cut rents.  "Highstreet is ready to reduce
rents by another EUR230 million (US$309 million) in the next five
years in addition to the contribution of EUR160 million over three
years pledged in the restructuring plan," Reuters quoted a
spokesman for the Highstreet consortium as saying.  Should this
offer -- available to all potential Karstadt buyers -- not be
taken up, "the probability of a Karstadt liquidation rises
significantly," the spokesman said, according to Reuters.  "An
agreement with Highstreet is a core component of rescuing
Karstadt."  In an e-mail to Mr. Berggruen dated June 7 and seen by
Reuters, Alexander Dibelius, who heads Goldman's German
operations, suggested lowering the minimum fixed rent to EUR210
million from EUR250 million for the rest of this year after the
closing of the deal.  Reuters noted the e-mail said the rent would
go up to EUR211 million for 2011 and 2012, and would then return
to EUR250 million by 2018.

                         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.



GENERAL MOTORS: Aims to Complete Opel Restructuring by Year-End
---------------------------------------------------------------
Christoph Rauwald at Dow Jones Newswires reports that Nick Reilly,
the chief executive of General Motors Co.'s Adam Opel GmbH
division, said he wants to complete almost all of the planned
restructuring measures by the end of this year in a bid to turn
around the business as soon as possible.

"We aim to complete most of the restructuring by the end of the
year. . . . Only some smaller issues could be left [for 2011],"
Mr. Reilly told Dow Jones at the sidelines of the Automotive News
Europe industry conference in Bilbao.  Mr. Reilly, as cited by Dow
Jones, said returning to "profitability is a top priority
obviously".

                       State Loan Guarantees

As reported by the Troubled Company Reporter-Europe on June 18,
2010, Bloomberg News said GM and its Opel and Vauxhall brands
withdrew all applications across Europe for state loan guarantees
after failing to reach government agreements.  Bloomberg disclosed
GM on June 16 said in a statement that it will "fund the
requirements internally" for a reorganization of Opel and Vauxhall
announced seven months ago.  The company said the amounts and
reasons for the funding haven't changed, according to Bloomberg.

On June 11, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg New, reported that Germany turned down GM's request for
EUR1.1 billion (US$1.3 billion) in aid for its money-losing Opel
division, forcing the automaker to seek new ways to reorganize the
unit.  "I'm convinced GM has sufficient financial resources,"
Bloomberg quoted Economy Minister Rainer Bruederle, a Free
Democrat, as saying in Berlin on June 9, in explaining why he
rejected GM.  "The state is not the better entrepreneur."
According to Bloomberg, Mr. Bruederle said GM has about EUR10
billion in free liquidity after paying back credits from the U.S.
and Canadian governments.  Opel is seeking EUR333 million in
guarantees from the U.K., EUR437 million from Austria and Spain
combined and EUR50 million in project financing from Poland,
Bloomberg disclosed, citing a PricewaterhouseCoopers report last
month commissioned by the German government.

                       About General Motors

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

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

At March 31, 2010, GM had US$136.021 billion in total assets,
total liabilities of US$105.970 billion and preferred stock of
US$6.998 billion, and non-controlling interests of US$814 million,
resulting in total equity of US$23.053 billion.

                   About Motors Liquidation

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

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

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


GENERAL MOTORS: Overtakes Fiat in Germany as Top Discounter
-----------------------------------------------------------
Chris Reiter and Sara Gay Forden at Bloomberg News report that
General Motors Co.'s money-losing Opel brand overtook Fiat SpA
with the steepest discounts in Germany last month as the unit
seeks to halt a drop in sales.

Opel dealers' discounts in May averaged 12.8% off the list price,
topping the 12.4% savings from Fiat, the traditional incentive
leader in Germany, Bloomberg says, citing trade publication
Autohaus PulsSchlag.

According to Bloomberg, Opel's quest for government aid
contributed to a 41% slide in German sales through May even after
the unit introduced a new version of its best-selling Astra
compact.

Bloomberg relates GM Europe President Nick Reilly on Monday said
in an interview at an industry conference in Bilbao, Spain, that
discounts are running about "average".

                      State Loan Guarantees

As reported by the Troubled Company Reporter-Europe on June 18,
2010, Bloomberg News said GM and its Opel and Vauxhall brands
withdrew all applications across Europe for state loan guarantees
after failing to reach government agreements.  Bloomberg disclosed
GM on June 16 said in a statement that it will "fund the
requirements internally" for a reorganization of Opel and Vauxhall
announced seven months ago.  The company said the amounts and
reasons for the funding haven't changed, according to Bloomberg.

On June 11, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg New, reported that Germany turned down GM's request for
EUR1.1 billion (US$1.3 billion) in aid for its money-losing Opel
division, forcing the automaker to seek new ways to reorganize the
unit.  "I'm convinced GM has sufficient financial resources,"
Bloomberg quoted Economy Minister Rainer Bruederle, a Free
Democrat, as saying in Berlin on June 9, in explaining why he
rejected GM.  "The state is not the better entrepreneur."
According to Bloomberg, Mr. Bruederle said GM has about EUR10
billion in free liquidity after paying back credits from the U.S.
and Canadian governments.  Opel is seeking EUR333 million in
guarantees from the U.K., EUR437 million from Austria and Spain
combined and EUR50 million in project financing from Poland,
Bloomberg disclosed, citing a PricewaterhouseCoopers report last
month commissioned by the German government.

                       About General Motors

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

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

At March 31, 2010, GM had US$136.021 billion in total assets,
total liabilities of US$105.970 billion and preferred stock of
US$6.998 billion, and non-controlling interests of US$814 million,
resulting in total equity of US$23.053 billion.

                   About Motors Liquidation

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

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

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


SEB AG: Moody's Retains Negative Outlook on D+ BFSR
---------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on SEB AB's A1 bank debt and deposit rating and the C-
bank financial strength rating, which maps to a Baa2 baseline
credit assessment.  The outlook for the bank's subordinated debt
and preferred stock ratings was also changed to stable.  The
Prime-1 short-term rating was affirmed.  At the same time, Moody's
has also changed the outlook to stable from negative on the long-
term debt and deposit rating for SEB AG, SEB AB's German
subsidiary, reflecting the stable outlook on its parent's ratings.
The outlook for the D+ BFSR of SEB AG remains negative.

Moody's decision to change SEB's outlook to stable reflects the
bank's improved capitalization, the stabilization of its Baltic
exposures as well as its good Nordic market position in merchant
banking.  The change of outlook also takes into consideration the
slowdown in the pace of deterioration of the bank's Baltic asset
quality.

In accordance with Basel II transitional rules, the bank's core
capital levels improved to 12.40% as at the end of March 2010 from
8.40% at year-end 2008, largely as a result of a SEK15 billion
rights issue in 2009.  Baltic asset quality remains a concern, but
Moody's takes comfort from the more stable outlook on the Baltic
operations as well as from the inclusion of a severe stress
scenario for the bank's Baltic assets in SEB's current rating
levels.  The rating agency also notes that the bank's loan book
outside Sweden accounts for more than 90% of current overall
impairments.

"Over the past four years, SEB has been pursuing its strategy to
improve integration, consolidation and cost management by the end
of 2010 with the aim of enabling the bank to create a solid
balance sheet and position it for growth in its core markets in
Northern Europe," said Janne Thomsen, a Moody's Senior Vice
President and lead analyst for SEB.  "Moody's will monitor the
bank's progress closely for signs of sustainable improvements
beyond what has been observed so far.  Stable core earnings in the
bank's main geographic areas and improved asset quality,
especially in the Baltic portfolio, may over time lead to upward
pressure on the ratings," adds Ms. Thomsen.

Moody's notes that SEB's Nordic business continues to display good
profitability as well as strong asset quality and efficiency
levels.  The bank also maintains a strong position in the Nordic
corporate banking market.

According to Moody's, the possible divestment of the retail
division of SEB's German subsidiary, SEB AG, would not affect the
ratings of SEB AB due to the limited size of the division.  The
rating agency says that the German subsidiary's long-term debt and
deposit rating would only change in the event of a multi-notch
downgrade of its BFSR -- which Moody's says is not likely over the
medium term.  Moody's added however that the maintained negative
outlook on the D+ BFSR of SEB AG reflected the uncertainty
surrounding the impact that any sale of part of the German
subsidiary may have.

Moody's previous rating action on SEB was in February 2010, when
the junior subordinated debt and Hybrid Tier 1 security ratings
were downgraded to Baa3 and Ba2 respectively, with a negative
outlook.

SEB AB is headquartered in Stockholm, Sweden and reported total
consolidated assets of SEK2,285 billion (EUR234 billion) at the
end of March 2010.


WESTLB AG: EU Extends "Temporary Approval" for State Aid
--------------------------------------------------------
Nikki Tait and James Wilson at The Financial Times report that
competition officials in Brussels have extended the "temporary
approval" for state aid given to WestLB for an indefinite period,
while they try to assess whether the bank's restructuring plans
will restore its long-term viability.

The FT relates on Tuesday EU officials said that they were still
trying to assess whether the transfer of impaired assets, which
WestLB has moved to a "bad bank" or wind-down vehicle, was done in
accordance with EU guidelines and whether "on this basis the
restructuring of WestLB is apt to restore the long-term viability
of the bank".  According to the FT, the officials said they would
prolong temporary approval of the "bad bank" vehicle until the
probe into the bank, which was opened late last year, is
completed.  There is no fixed timescale for that investigation,
the FT notes.

                           About WestLB

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

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

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on May 6,
2010, Moody's Investors said the E+ bank financial strength rating
(BFSR, which maps directly to a B2 baseline credit assessment,
BCA), was affirmed and the outlook on this rating changed to
stable from developing.  Moody's affirmation of the E+ BFSR and
the change of its outlook to stable reflects that, despite
positive developments, the BFSR remains constrained by the bank's
weak franchise, which includes several core segments that do not
(or only insufficiently) contribute to group profits, thus
resulting in the bank's continued dependence on volatile,
wholesale-focused sources of income.  Moody's does not rule out
that the bank could be split up and unwound if efforts to divest
the bank were to prove unsuccessful.


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


ARIADNE SA: Moody's Downgrades Note Ratings to Ba1
--------------------------------------------------
Moody's Investors Service has downgraded the ratings of the notes
issued by Ariadne S.A. to Ba1 and the ratings on the notes issued
by Titlos plc to Ba2.  Ariadne and Titlos are two asset-backed
transactions sponsored by the government of Greece.

The rating actions followed Moody's downgrade of the foreign and
local currency ratings of the government of Greece to Ba1 from A3
on 14 June 2010.  The downgrades concluded the review for possible
downgrade of the ratings of the notes in both transactions that
Moody's initiated on 27 April 2010.

                             Ariadne

The ratings of the notes issued by Ariadne are primarily based on
the effective guarantee of the Greek government rather than on the
value of the lottery receivables backing the notes.  Moody's
rating analysis also considered the benefit of a EUR10 million
liquidity reserve, which now accounts for 4.8% of the outstanding
notes due to amortization.  This reserve, however, is not
sufficient to support a higher rating than that of the Greek
government.

                              Titlos

The ratings of the notes issued by Titlos are fully linked to the
credit quality of the Greek government and, in addition, are now
also exposed to that of the National Bank of Greece in its
capacity as swap counterparty, cash manager, and account bank.

The transaction is the securitization of a swap agreement (the
Hellenic Swap) that relies on payments by the Greek government.
As such, Moody's rating of the notes is fully linked to the rating
of the Greek government.

Titlos has also entered into two swaps with NBG (the NBG swaps) to
match payments coming from the Hellenic Swap with payments
required under the notes.  Previously, the rating of the
transaction had not been linked to that of NBG because the
transaction documents provided for remedial steps to be taken
should NBG's rating be downgraded below specific triggers and, in
particular, for NBG to be replaced in its various roles in the
transaction once its rating fell below certain thresholds.
However, on June 16, 2010, the transaction documents were amended
to effectively remove all such obligations, including the required
replacement of NBG as account bank, cash manager and hedge
counterparty, after Moody's downgraded NBG's senior unsecured debt
ratings to Ba1/Not-Prime, on June 15, 2010.  As a result, the
notes became fully exposed to the creditworthiness of NBG.
Although NBG's credit rating of Ba1 is identical to that of the
Greek government, the notes are now exposed to incremental credit
risk, which is reflected in their rating of Ba2.


EMPORIKI BANK: Credit Agricole to Take EUR400 Million Writedown
---------------------------------------------------------------
Fabio Benedetti-Valentini at Bloomberg News reports that Credit
Agricole SA said it will take a EUR400-million (US$490 million)
writedown on its stake in Emporiki Bank of Greece SA as it expects
higher losses at the unit this year.

According to Bloomberg, Credit Agricole said in a statement
Tuesday that the bank will book the writedown in the earnings
period ending June 30.

Emporiki's estimated 2010 after-tax losses may reach about EUR750
million, more than twice as much as estimated in October,
Bloomberg says, citing a presentation on the bank's Web site.

Bloomberg notes Credit Agricole said Emporiki, which had a net
loss of EUR583 million in 2009, expects to return to profit in
2012.

Headquartered in Athens, Greece, Emporiki Bank S.A. --
http://www.emporiki.gr/-- is a member of the Credit Agricole
Group, is a banking and financial services group located in
Greece.  The Bank is active in the domestic and foreign capital
and money markets, offering a range of banking services and
products that cover the savings, financing and investment
requirements of its customers.  It operates 372 branches in
Greece, and is active in Germany, Cyprus, Romania, Bulgaria and
Albania through subsidiary banks (54 branches), and in London,
United Kingdom, through a branch.  Emporiki Bank offers a range of
products and services, such as investment banking and leasing,
factoring, insurance, bancassurance, asset management for
institutional investors, mutual fund management, securities
portfolio management, real estate development and management, and
consumer credit.

                           *     *     *

Emporiki Bank S.A. continues to carry a D Bank Financial Strength
Rating from Moody's Investors Service with negative outlook.


TITLOS PLC: Moody's Downgrades Note Ratings to Ba2
--------------------------------------------------
Moody's Investors Service has downgraded the ratings of the notes
issued by Ariadne S.A. to Ba1 and the ratings on the notes issued
by Titlos plc to Ba2.  Ariadne and Titlos are two asset-backed
transactions sponsored by the government of Greece.

The rating actions followed Moody's downgrade of the foreign and
local currency ratings of the government of Greece to Ba1 from A3
on 14 June 2010.  The downgrades concluded the review for possible
downgrade of the ratings of the notes in both transactions that
Moody's initiated on 27 April 2010.

                             Ariadne

The ratings of the notes issued by Ariadne are primarily based on
the effective guarantee of the Greek government rather than on the
value of the lottery receivables backing the notes.  Moody's
rating analysis also considered the benefit of a EUR10 million
liquidity reserve, which now accounts for 4.8% of the outstanding
notes due to amortization.  This reserve, however, is not
sufficient to support a higher rating than that of the Greek
government.

                              Titlos

The ratings of the notes issued by Titlos are fully linked to the
credit quality of the Greek government and, in addition, are now
also exposed to that of the National Bank of Greece in its
capacity as swap counterparty, cash manager, and account bank.

The transaction is the securitization of a swap agreement (the
Hellenic Swap) that relies on payments by the Greek government.
As such, Moody's rating of the notes is fully linked to the rating
of the Greek government.

Titlos has also entered into two swaps with NBG (the NBG swaps) to
match payments coming from the Hellenic Swap with payments
required under the notes.  Previously, the rating of the
transaction had not been linked to that of NBG because the
transaction documents provided for remedial steps to be taken
should NBG's rating be downgraded below specific triggers and, in
particular, for NBG to be replaced in its various roles in the
transaction once its rating fell below certain thresholds.
However, on June 16, 2010, the transaction documents were amended
to effectively remove all such obligations, including the required
replacement of NBG as account bank, cash manager and hedge
counterparty, after Moody's downgraded NBG's senior unsecured debt
ratings to Ba1/Not-Prime, on June 15, 2010.  As a result, the
notes became fully exposed to the creditworthiness of NBG.
Although NBG's credit rating of Ba1 is identical to that of the
Greek government, the notes are now exposed to incremental credit
risk, which is reflected in their rating of Ba2.


WIND HELLAS: S&P Reinstates 'CCC+' Rating on EUR1.22 Bil. Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services corrected and reinstated the
issue and recovery ratings of subsidiaries of Greek mobile
telecommunications operator WIND Hellas Telecommunications S.A.
(CCC+/Stable/--).  On Feb. 16, 2010, the issue and recovery
ratings on these two sets of notes were withdrawn due to an
administrative error.

S&P reinstated the 'CCC+' issue rating on the EUR1.22 billion
floating-rate callable senior secured notes due Oct. 15, 2012,
issued by wholly owned subsidiary Hellas Telecommunications
(Luxembourg) V, and the '3' recovery rating on these notes.

S&P reinstated the 'CCC-' issue rating on the EUR355 million
callable senior unsecured notes due Oct. 15, 2013, issued by
subsidiary Hellas Telecommunication (Luxembourg) III, and the '6'
recovery rating on these notes.


WIND HELLAS: S&P Downgrades Corporate Credit Ratings to 'CC'
------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit ratings on Greek mobile telecommunications
operator WIND Hellas Telecommunications S.A. and related entities
to 'CC' from 'CCC+'.  The outlook is negative.

At the same time, S&P lowered its issue ratings on the
EUR1.22 billion floating-rate callable senior secured notes issued
by WIND Hellas' wholly owned financial subsidiary Hellas
Telecommunications (Luxembourg) V S.C.A. to 'CC' from 'CCC+', in
line with the corporate credit rating.  S&P simultaneously lowered
its recovery rating on these notes to '4' from '3', indicating its
expectation of average (30%-50%) recovery in the event of a
payment default.

S&P also lowered the issue ratings on the EUR355 million senior
unsecured callable notes issued by Hellas Telecommunications
(Luxembourg) III S.C.A.  to 'C' from 'CCC-', one notch below the
corporate credit rating on the group.  The recovery rating on
these notes is unchanged at '6', indicating S&P's expectation of
negligible (0%-10%) recovery for unsecured creditors in the event
of a payment default.

"The downgrade mainly reflects S&P's view that, during the next
few weeks or months, WIND Hellas could default on its upcoming
debt obligations or have to undergo another capital restructuring
-- the second in six months," said Standard & Poor's credit
analyst Melvyn Cooke.  "This in turn could lead to a distressed
exchange offer, which would be tantamount to a default under S&P's
criteria."

WIND Hellas has reported that its cash balances--S&P believes its
only funding source currently--fell dramatically in the second
quarter of 2010.  S&P think this creates uncertainty regarding
upcoming debt payments of EUR17.5 million of principal due at the
end of June 2010 under the group's revolving credit facility; and
about EUR23 million of interest due on July 15, 2010, on its
secured notes.

In addition, WIND Hellas has announced that it entered talks with
some of its creditors and owner Weather Investments SpA regarding
the group's deteriorated liquidity position and capital structure,
and that it had appointed Morgan Stanley, White & Case, and
Karatzas & Partners as financial advisors.

"The negative outlook reflects S&P's opinion that WIND Hellas'
'very weak' liquidity is likely to deteriorate further, given the
adverse economic conditions the group confronts in its Greek
domestic market," said Mr. Cooke.

The outlook also incorporates S&P's view that the group is likely
to undergo another capital restructuring in the immediate term.
In S&P's opinion, this would in turn likely lead to a distressed
exchange offer, which, under its criteria, is tantamount to
default.

Given the expected pressure on WIND Hellas' operating performance
in 2010 and the unfavorable macroeconomic conditions in Greece,
S&P believes a positive rating action is unlikely over the next
few months.


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


ALLIED IRISH: Polish Government Backs PKO Bid for Bank Zachodni
---------------------------------------------------------------
Jan Cienski at The Financial Times reports that the Polish
government on Tuesday supported a potential bid from state-owned
PKO for Bank Zachodni WBK, which is being put up for sale by
Ireland's troubled Allied Irish Bank.

According to the FT, Poland's treasury ministry said it may defer
a dividend payment to enable PKO, which is 51% state owned to buy
BZ WBK.

The FT says the 70% stake in BZ WBK owned by AIB is thought to be
worth about PLN11 billion (US$3.4 billion).  The FT states that
kind of money will be difficult for PKO BP to raise, even if it
withholds its dividend of about PLN1 billion, with the likeliest
option for funding the acquisition being a new share issue.

AIB is being forced to sell off its Polish affiliate in order to
meet capital targets after receiving aid from the Irish
government, the FT notes.

As reported by the Troubled Company Reporter-Europe on May 17,
2010, The Irish Times said the Irish government's shareholding in
AIB increased to 18.6% as the bank was forced to give shares to
the state instead of a EUR280 million dividend due under last
year's EUR3.5 billion bailout of the bank.  The Irish Times
disclosed AIB had to give 198 million ordinary shares, or
a stake of 18.3%, to the government after the European Commission
placed a "dividend stopper" pending a review of the state aid
support.  The bank must raise EUR7.4 billion in capital this year
to absorb mounting losses, which could lead to the state
increasing its interest to a majority stake if AIB cannot raise
enough cash on its own, The Irish Times said.

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

                           *     *     *

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


AVOCA CLO: S&P Downgrades Credit Rating on Class D Notes to 'B-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit rating on
Avoca CLO V PLC's class D notes.  At the same time, S&P withdrew
its rating on the class S combination notes, as they have been
decoupled into their constituent parts.  S&P also affirmed its
ratings on all other classes of notes.

The rating action on the class D notes is the result of the
application of the supplemental stress tests set out in S&P's
corporate CDO criteria.  The results of these tests highlighted
that the class D note has been further constrained by the largest
obligor default test since S&P's last review of the transaction in
February, largely due to the downgrade of certain corporate
obligors.  As a result, S&P has lowered the ratings on the class D
notes to 'B-'.

The affirmation of the class A1a, A1b, A2, B, C1, C2 E, F, and R
notes reflects S&P's view that these tranches have adequate credit
support to maintain their current ratings.

S&P has withdrawn its ratings on the class S combination note
following confirmation from the trustee that this note has been
decoupled into its constituent parts.


DANUBE DELTA: S&P Cuts Ratings on Two Classes of Notes to 'CCC-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class A-1VFN, A-2VFN, A-3VFN, C-1, and C-2 notes co-issued by
Danube Delta Corp. and Danube Delta PLC, and affirmed its ratings
on the class D-1 and D-2 notes.

These rating actions follow S&P's assessment of a further credit
deterioration of the assets whose cash flows ultimately provide
for the interest and principal payments on the notes.  While the
transaction has not been exposed to a further increase in the
number of assets that S&P considers defaulted in its analysis
(currently five assets, amounting to US$31.5 million) since its
last review in February 2010, S&P's analysis shows that there has
been an increase in the proportion of pool assets that S&P rate
'CCC+' and lower.

S&P's analysis indicates that assets in the 'CCC' rating category
(i.e., 'CCC+' to 'CCC-') now account for about 17% of the
portfolio (up from 14% in February 2010).  Assets rated below
investment-grade (below 'BBB-') now account for about 68% of the
portfolio.  These figures include adjustments S&P has made to the
ratings on those assets that are currently on CreditWatch
negative.  This is in line with S&P's criteria regarding its
revised assumptions governing structured finance assets with
ratings on CreditWatch negative held within collateralized debt
obligation transactions.  Under these revised assumptions, ratings
on CreditWatch negative are adjusted downward by at least three
notches.  According to S&P's analysis, about 18% of the portfolio
is currently on CreditWatch negative.

The assets to which the co-issuers are ultimately exposed comprise
U.S. and European structured finance assets, where the exposure to
CDO assets accounts for approximately 40% of the portfolio, and
exposure to prime RMBS assets, approximately 20% of the portfolio.
The assets are divided into three pools according to their
currency denomination: A euro pool (about 38%), a British pound
sterling pool (about 10%), and a U.S. dollar pool (about 52%).
The cash flows from each pool primarily provide funds for the
payments due to the corresponding notes denominated in the same
currency.

The transaction was structured to include interest coverage and
overcollateralization tests at both the individual pool and the
overall transaction level.  From the latest available trustee
report, S&P note that the individual OC tests in most cases have
continued to decline.  Currently, only the class A-1 euro OC test,
the class C-1 euro OC test, and the class A-3 sterling OC test are
in compliance.  The OC ratio for the U.S. dollar-denominated notes
continues to be substantially below 100%.

In addition, S&P observed a decline in all IC ratios since its
last review, indicating a reduction in interest proceeds generated
by each individual currency portfolio.  From the latest available
trustee report, S&P note that currently the euro portfolio does
not generate sufficient interest proceeds to pay full interest due
on the class A-1 euro notes.  In S&P's view, this is due to an
increase in the amount of assets in the euro portfolio that are
deferring their interest payments.  The interest shortfall arising
from the euro portfolio has resulted in a conversion of available
dollar proceeds into euros to compensate for it.  In S&P's
opinion, this results in an increased exposure of the structure to
foreign exchange rate fluctuations.  S&P also note that, according
to the transaction documents, the spread payable on the class A-1,
A-2, and A-3 notes is set to step up by 0.6% at the end of the
revolving period (the interest payment date in August 2011).

In addition, S&P's analysis indicates that, at a transaction
level, the OC ratios for classes A, C, and D remain below 100%.
The breach of the OC ratio tests has led to a diversion of
proceeds to redeem the class A-1, A-2, and A-3 VFN notes, first by
using available proceeds in the same currency to redeem the class
A VFN note denominated in that currency, followed by currency
conversions of available proceeds from the other currency pools.

As a result of these developments, the ratings on the class A-1,
A-2, A-3 VFN, C-1, and C-2 notes are in S&P's opinion no longer
commensurate with the available credit enhancement and S&P has
therefore lowered its ratings on these notes.

                           Ratings List

               Danube Delta Corp./Danube Delta PLC
           Up to EUR265 Million Variable-Funding Notes,
      EUR6 Million and US$6 Million Senior Secured Deferrable
                       Floating-Rate Notes,
          EUR6 Million and US$6 Million Secured Deferrable
                       Floating-Rate Notes,
                   US$10 Million Composite Notes,
       and EUR9 Million and US$21 Million Subordinated Notes

                         Ratings Lowered

                                    Rating
                                    ------
                 Class        To             From
                 -----        --             ----
                 A-1 VFN      CCC            BB-
                 A-2 VFN      CCC            BB-
                 A-3 VFN      CCC            BB-
                 C-1          CCC-           CCC+
                 C-2          CCC-           CCC+

                        Ratings Affirmed

                      Class        Rating
                      -----        ------
                      D-1          CCC-
                      D-2          CCC-


SMURFIT KAPPA: Fitch Affirms 'BB' Long-Term Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has taken various rating actions on three European
paper & forest products companies, following an analysis of their
operational and financial profiles over the next two to three
years.

Stora Enso Oyj:

  -- Long-term Issuer Default Rating affirmed at 'BB'; Outlook
     revised to Stable from Negative

  -- Senior unsecured rating affirmed at 'BB'

  -- Short-term IDR affirmed at 'B'

UPM Kymmene Oyj:

  -- Long-term IDR upgraded to 'BB' from 'BB-'; Outlook Stable
  -- Senior unsecured rating upgraded to 'BB' from 'BB-'
  -- Short-term IDR affirmed at 'B'

Smurfit Kappa Group plc and related entities:

  -- Smurfit Kappa Group's Long-term IDR affirmed at 'BB'; Outlook
     Stable

  -- Smurfit Kappa Acquisitions' senior secured facilities
     affirmed at 'BB+'

  -- Smurfit Kappa Acquisitions' guaranteed senior secured notes
     affirmed at 'BB+'

  -- Smurfit Kappa Funding's senior subordinated notes due 2015
     affirmed at 'BB-'

  -- Smurfit Kappa Treasury Funding's debenture notes due 2025
     affirmed at 'BB+'

The rating actions reflect Fitch's view that the restructuring,
cost saving and cash preservation measures implemented by the
companies in FY09 have yielded positive results and should
position the companies on firmer ground to face the new challenges
arising in FY10.

Recovery in demand and pricing for certain paper grades, packaging
and wood has supported the year-on-year improvements in Q110
results and Fitch expects those trends to continue across FY10.
In contrast, market fundamentals remain challenging for newsprint,
magazine paper and, to a lesser extent, coated fine paper, as
demand is not expected to pick up sufficiently to absorb the
continuing overcapacity.

Fitch views input cost pressure as a key risk in 2010.  Input
costs (fibre, energy, chemicals) have risen over the past few
months and are not expected to abate in the near term.  Producers'
ability to pass those costs through to their customers remains
highly correlated to the supply-demand balance in each sub-sector.
While weaker profitability is expected in some publication paper
grades, Fitch believes that Stora Enso and UPM's portfolio
diversification will support higher levels of operating earnings
and cash flow generation overall.  Margin pressure should also be
partly offset by the cost savings realized in 2009 and planned for
2010.  Fitch anticipates further restructuring measures in the
publication paper sector.

Stora Enso and UPM have net long positions in chemical pulp
(around 900kt and 100-200kt respectively) and should benefit from
the current record high pulp prices.  Strong demand from China,
supply disruptions in Chile and low inventory levels on the back
of widespread capacity closures in 2009 are supporting pulp
prices.  While Fitch remains cautious about the sustainability of
the current price levels, tight market conditions are likely to
persist until end-2010.

Demand for paper-based packaging has been trending up and new
containerboard capacity has not resulted in oversupply as
previously expected.  Higher recovered paper prices, supply
discipline and demand recovery have so far supported pricing
momentum in containerboard, kraftliner and corrugated packaging.
Those trends should benefit both SKG and Stora Enso.  SKG's
ratings are further supported by its leading market positions,
integrated operations, exposure to recession-resilient markets and
strong presence in Latin America.

EP&FP players have been slow to react to the structural weaknesses
affecting their core publication paper operations (substitution by
electronic media and competition from low-cost production) and are
now constrained in their ability to address those issues by low
levels of profitability and cash flow generation.  When looking at
companies operating in the sector in Europe, Fitch is increasingly
focusing on their capacity/ability to transform their business and
operational model without materially impacting their already weak
balance sheet.

The upgrade of UPM reflects the margin recovery observed since the
sharp deterioration in performance in Q110, and the slight de-
leveraging achieved in FY09, despite the acquisition of assets in
Uruguay.  Performance should be supported by stronger results in
the restructured labels division, recovery in some of the
specialty paper grades, forest & timber division and, to a lesser
extent, in the pulp division.  Fitch expects leverage to reduce
slightly over the near term and to remain on par with peers'
levels at or below 4x.

Capex guidance remains conservative compared with historical
levels.  Fitch's concerns regarding the potential impact of the
prolonged low investment levels on mid- to long-term
competitiveness are partly offset by the companies' progress
towards securing low-cost fiber in Latin-America in FY09.  UPM's
capex is expected to reach EUR300 million in FY10, up from
EUR236 million in FY09 (or 34% of depreciation).  In mitigation,
Fitch notes that the company exchanged 30% of its 47% stake in
Metsa-Botnia for a 44% additional participation in Fray Bentos, a
pulp mill with a capacity of 1.1mtpa in Uruguay in which it had
previously held a 47% share.  In effect, UPM traded 700,000T/year
of pulp in Finland for 400,000T/year of pulp in Uruguay.  This
increased the portion of pulp produced in Latin America to 31%
from 12% previously and should improve UPM's overall cost
position.  Fray Bentos was consolidated in December 2009.

Stora Enso plans to spend EUR400 million in capex in FY10 compared
with EUR388 million in 2009 (or 70% of depreciation).  The company
partnered with Chilean producer Celulosa Arauco y Constitution
S.A.  ('BBB+'/Stable) to buy additional forest assets in Uruguay,
consisting of approximately 130,000ha of owned land and
plantations, and a pulp mill site currently being considered for
development.  In its forecasts for Stora Enso, Fitch has run
scenarios assuming investments in a new 1mtpa-1.5mtpa pulp mill
over 2011-2013 in Uruguay.

SKG plans to restore capex to historical levels (around 90% of
depreciation) in FY10 which Fitch deems adequate.  The company
continues to seek bolt-on acquisitions in the packaging sector and
Fitch takes comfort in its strong track record in integrating
previous acquisitions and realising announced synergies.

Liquidity is adequate for all companies.  Stora Enso is facing the
largest maturities in 2010 (EUR788 million -- bonds primarily) but
strong working capital relief and cash preservation measures have
allowed it to generate positive free cash flow (FCF) of
EUR787 million for the first time since 2006 and to build up cash
positions of EUR890 million at FYE09.  Fitch expects part of those
maturities to be refinanced.  In FY09, the company raised
EUR742 million of new debt, including EUR562m on the bond markets.
Stora also has an undrawn EUR1.4bn RCF (no covenants) maturing in
2012.

SKG continues to face minimal debt repayments until 2012.  It
raised EUR1 billion worth of senior secured notes on capital
markets, the proceeds of which were used to repay part of its
existing senior secured facilities.  Liquidity is strong and was
supported by cash positions of EUR601 million at FYE09 and
available RCFs of EUR152 million and EUR373 million maturing in
2012 and 2013 respectively.  Covenant headroom is expected to
remain adequate under Fitch's forecasts.

UPM did not tap into the bond market in 2009 but refinanced its
EUR1.5 billion RCF with a new EUR825 million three-year RCF.  The
company also has access to a five-year EUR1 billion RCF (no
covenants).  Both mature in March 2012.  At FYE09, UPM counted on
cash balances of EUR438 million compared with maturities of
EUR167 million in FY10.

Fitch expects to publish a special report outlining some key
financial and operational outcomes from the sector review over the
next month.


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


BANCA MONTE: Moody's Downgrades Bank Strength Rating to 'D'
-----------------------------------------------------------
Moody's Investors Service has downgraded the long-term deposit
rating of Banca Monte Parma to Baa3 from Baa2, its short-term
deposit rating to Prime-3 from Prime-2, and its bank financial
strength rating to D from D+.  The BFSR now maps to a baseline
credit assessment of Ba2 (previously Baa3).  The outlook on the
BFSR is negative, while the outlook on the long-term deposit
rating is stable.

Moody's said that the downgrade of Banca Monte Parma reflects the
recent emergence of a substantial amount of loan loss provisions
which have contributed to a loss of EUR15.1 million for 2009 and
have negatively affected its level of capitalization.  The rating
agency said that this more rapid-than-expected deterioration in
asset quality positions the risk profile of the bank beyond the
parameters associated with its anticipated scenario for the bank,
which was incorporated in the ratings first assigned in August
2009.  Moody's observed that Banca Monte Parma's aggressive
expansion of recent years, in part outside of its home province of
Parma, and its weak underwriting standards have resulted in
weakening financials and weak asset quality, which now position
the bank more towards its stressed scenario.

Following more recent changes in the bank's senior management,
Banca Monte Parma is now focusing on creating a new business plan,
with the aim of defining a return to a sustainable level of
profitability and strengthening the currently modest level of
capitalization -- targets which, Moody's said, are particularly
challenging in the currently difficult economic environment.
While the bank's main shareholder -- Fondazione Monte Parma --
intends to maintain a majority stake and control of the bank, it
has also indicated the need to seek for a new banking partner
which could provide support against the challenges faced.

The EUR15.1 million loss recorded by Banca Monte Parma in 2009 was
primarily the result of a sharp increase in loan loss provisions,
combined with lower revenues and pre-provision earnings.  The bank
reported a Tier 1 ratio of 6.09% at December 2009, compared to
6.95% in January 2009.  Moody's anticipates that 2010 will again
be a difficult year for the bank given the continued weak economic
environment, its challenged revenue generation, as well as its
weak cost efficiency.

Moody's said that it is concerned that Banca Monte Parma's current
modest capital adequacy -- particularly in the ongoing economic
downturn, and with higher-than-anticipated loan loss charges
emerging -- reveals a degree of vulnerability that is better
reflected in a BCA of Ba2.  The rating agency added that it does,
however, recognize Banca Monte Parma's satisfactory franchise in
its home province, which is also reflected in its 15% market share
for deposits and 12% for lending, which may prove valuable in
restoring the bank's financial fundamentals.

The negative outlook on the BFSR reflects Moody's view that Banca
Monte Parma will face further pressure if losses continue to be
significant, eroding further the bank's risk absorption capacity.
The rating agency also notes the degree of uncertainty over the
measures that the bank will undertake to address the currently
difficult situation and strengthen capital.

In light of the current economic crisis, and given Banca Monte
Parma's now lower BCA, Moody's expects a high likelihood of
systemic support for the bank, which results in a two-notch uplift
from its BCA of Ba2 to its Baa3 long-term deposit rating, and
leads to the stable outlook on the long-term deposit rating.

These ratings were downgraded:

Banca Monte Parma:

  -- BFSR to D (mapping to a BCA of Ba2) from D+
  -- Long-term deposit rating to Baa3 from Baa2
  -- Short-term deposits to Prime-3 from Prime-2

Moody's previous rating action on Banca Monte Parma was on 11
August 2009, when the bank's ratings were assigned for the first
time.

Headquartered in Parma, Italy, Banca Monte Parma had total assets
of EUR3.1 billion as at December 31, 2009.


FIAT SPA: Workers at Pomigliano Plant Accept New Work Practices
---------------------------------------------------------------
Guy Dinmore at The Financial Times reports that several thousand
car workers at Fiat's Pomigliano D'Arco plant on Tuesday voted to
accept tough management conditions on new work practices in return
for transferring production of the Panda model from Poland.

According to the FT, Reuters said close to two-thirds of the 4,642
workers who voted backed the proposal.

The FT notes Sergio Marchionne, chief executive, had indicated he
would close the plant with its 5,300 workers if a sufficient
consensus -- which he has not defined -- did not vote in favor.
Mr. Marchionne says he is committed to investing EUR700 million
(US$861 million) in Pomigliano, which has mostly stood idle for
two years, and moving the Panda production line from its super-
efficient but overstretched Tychy plant in Poland, the FT
discloses.  In return, workers had to agree to accept shorter
breaks, longer periods of compulsory overtime, sanctions against
what Fiat defines as unacceptable levels of sick leave, and
restrictions on their right to strike, the FT states.  Fiom union
says the conditions breach labor agreements and the Italian
constitution, the FT relates.

                          About Fiat SpA

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on April 27,
2010, Standard & Poor's Ratings Services said that it placed its
'BB+' long-term corporate credit rating on Italian industrial
group Fiat SpA on CreditWatch with negative implications.  At the
same time, the 'B' short-term credit rating on Fiat was affirmed.
In addition, S&P placed the 'BB+' long-term rating on Fiat's
subsidiary CNH Global N.V. on CreditWatch with developing
implications.  "The CreditWatch placement reflects S&P's view that
Fiat's credit quality could weaken due to increased business risk
as a consequence of the proposed demerger of CNH, Iveco SpA (not
rated), and the industrial and marine divisions of Fiat Powertrain
Technologies into the newly created entity Fiat Industrial SpA,"
said Standard & Poor's credit analyst Barbara Castellano.


SNAI SPA: S&P Junks Corporate Credit Rating From 'B-'
-----------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Italy-based gaming group SNAI SpA
to 'CCC+' from 'B-'.  At the same time, the ratings were removed
from CreditWatch where they were placed with negative implications
on April 27, 2010.  The outlook is negative.

"The one-notch downgrade primarily reflects the lack of reported
progress in the refinancing the bank loans of SNAI Servizi S.r.l.,
the parent company of SNAI," said Standard & Poor's credit analyst
Diego Festa.  "In S&P's view, the slow progress signals
uncertainties in respect of SNAI's liquidity position, which S&P
considers as weak.  This risk is exacerbated by SNAI's operating
performance over the first quarter of financial 2010, which was
weaker than S&P anticipated."

SNAI's disappointing operating performance was the result of a
significant increase of the payout rate on fixed-odds betting.
Fixed-odds betting is the only business segment where SNAI faces a
gambling risk, and S&P estimate that this segment was the largest
contributor to the group's operating profits in 2009.

On April 14, 2010, S&P understands that Unicredit Corporate
Banking S.p.A., SNAI's largest creditor, gave consent to SNAI
Servizi to postpone repayment of a EUR55 million bank loan that
had been due Dec. 18, 2009.  What's more, S&P understands that
Unicredit has conditionally waived its rights, based on a cross-
default clause, to foreclose a guarantee facility agreement
provided to SNAI Servizi S.r.l., and its senior and junior loans
provided to SNAI.  S&P further understand that Unicredit has
waived its right up to March 15, 2011, conditional on a swap being
completed by June 15, 2010, of the existing EUR55 million bank
loan of SNAI Servizi into a convertible bond due Oct. 31, 2010.
On that date, Unicredit would have the right to convert the
proposed new bond into shares of SNAI Servizi.  The June 15, 2010,
deadline has passed, and S&P understands that SNAI Servizi did not
issue the bond.

S&P understands that SNAI and SNAI Servizi are continuing to
review a more permanent approach to their debt funding with
Unicredit.

In S&P's view, there are ongoing risks and uncertainties connected
with SNAI's funding structure.  In the very short term, S&P see
successful debt maturity management as a prerequisite for
maintaining the rating at its current level.

Any further deterioration in SNAI's operating performance would in
S&P's view increase pressure on the rating momentum that is
already signaled by the negative outlook on its rating on SNAI,
and could lead to a further downgrade.


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


HALYK BANK: Returns KZT60 Billion Deposit to State Welfare Fund
---------------------------------------------------------------
Robin Paxton at Reuters reports that Halyk Bank said on Tuesday it
returned a three-year deposit of KZT60 billion (US$408 million) to
state welfare fund Samruk-Kazyna ahead of schedule.

Reuters relates Halyk said the deposit was placed in January 2009
as part of a government program to finance and refinance projects
in the real economy, and was thus returned 18 months ahead of
schedule.

According to Reuters, the bank said the early return of the
deposit would not have any negative effect on outstanding loans
granted earlier within the government's stabilization program.

Kazakhstan-based Halyk Bank AO (Halyk National Savings Bank of
Kazakhstan JSC or Halyk Bank JSC) (KAS:HSBK) --
http://eng.halykbank.kz/-- offers banking services to private and
corporate clients.  Its services include cash-settlements, loans,
deposits, pensions, insurance, leasing, brokerage and asset
management, safe deposit boxes, American Express checks, debit and
credit cards, Internet banking and other services in national and
foreign currencies.  As of December 31, 2008, the Bank operated
through 15 branches (13 wholly owned) located on the territory of
Kazakhstan, Russia, Kyrgyzstan, Mongolia, Kyrgyzstan, Georgia and
the Netherlands.

                          *     *     *

As reported in the Troubled Company Reporter-Europe on Jan. 26,
2010, Fitch Ratings revised Halyk Bank's Outlook to Stable from
Negative.  Fitch affirmed the bank's long-term foreign currency
IDR and Long-term local currency IDR at 'B+'.  It affirmed the
bank's Short-term foreign currency IDR and Short-term local
currency IDR at 'B'.  The bank's individual rating was affirmed at
'D/E'.

Fitch said Halyk's asset quality remains weak, with NPLs (loans
more than 90 days overdue) reaching 16.7% at end-November 2009
according to regulatory data, and restructured loans comprising
23% of the loan book at end-9M09 (all end-9M09 data is according
to IFRS).  According to Fitch, Asset quality performance is
undermined by the significant exposure to the troubled
construction and real estate sectors (end-9M09: 20% of the loan
book), while exposure to the 20 largest borrowers (26% of the loan
book) and the share of FX lending (53%) are also high.  However,
reported loan impairment numbers have shown some signs of
stabilization in H209, with NPLs rising only 2pp during the five
months to end-November.  Furthermore, Halyk has built up
considerable loss absorption capacity, and at end-November 2009
could have increased its impairment reserves to 31% of loans (from
the actual level of 18.8%) before its total regulatory capital
adequacy ratio would have fallen to the minimum 10% level, Fitch
said.

Accrued (but not received) interest was a sizable 43% of equity
(based on local accounts) at end-2009, which significantly
undermines the quality of capital; however, this ratio was still
notably lower than at peers, according to Fitch.  Halyk has a
moderate share of foreign funding (end-2009: 15% of total
liabilities) with distant large ticket repayments (from 2013).
Liquidity is currently comfortable, with cash and bank placements
up to one month comprising 21% of assets at end-2009; however,
funding is heavily reliant on deposits from state-owned companies,
Fitch said.


===========
L A T V I A
===========


* LATVIA: President Valdis Zatlers Vetoes Insolvency Reform Bill
----------------------------------------------------------------
Nathan Greenhalgh at Baltic Reports relates that Latvian President
Valdis Zatlers has vetoed three controversial bills from the
parliament covering insolvency reform, Latvian language
requirements for media companies and anti-corruption legislation.

According to the report, while President Zatlers supported the
purpose and parts of each bill, he found sufficient objections
with other parts that he is requesting the Saeima to take another
look at them.


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


CASE NEW: Moody's Assigns 'Ba3' Rating on US$1 Billion Notes
------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to the US$1
billion of notes issued by Case New Holland Inc. which are
guaranteed by its parent company CNH Global NV and by its direct
and indirect subsidiaries.  Moody's also affirmed CNH's existing
ratings -- Ba3 Corporate Family Rating and Probability of Default
Rating, and SGL-3 Speculative Grade Liquidity Rating.  The rating
outlook remains stable.

Proceeds of the issuance will be used to redeem approximately
US$500 million in outstanding notes and repay a portion of the
approximately US$2.4 billion of debt due to Fiat SpA, which is the
90%-owner of CNH.

The Ba3 rating recognizes CNH's weak operating performance and
stressed credit metrics in the aftermath of the severe downturn in
global construction equipment markets and the slowdown in
agricultural equipment demand.  However, the rating also
anticipates that the company's performance will continue to
strengthen through 2011 as a result of a gradual recovery in both
sectors and the significant restructuring initiatives undertaken
by CNH in its construction equipment operations.  Moreover, CNH
continues to enjoy a globally competitive position in the farm
equipment sector which benefits from favorable long-term growth
fundaments.  In addition, the farm equipment sector, which
accounts for over 70% of CNH's industrial revenues and 80% of its
assets, has oligopolistic characteristics with only three global
competitors -- CNH, Deere & Company, and AGCO.  This should
contribute to a relatively favorable pricing environment.

The Ba3 rating also reflects Moody's assessment of the stand-alone
credit quality of CNH.  Although CNH is 90%-owned by Fiat
(Ba1/negative), Fiat has not provided any formal support for CNH
in the form of a legally enforceable support agreement or
guarantee.  Consequently, the CNH rating does not reflect any
material lift or benefit from the Fiat ownership.  For this
reason, the proposed separation of Fiat into an automotive group
and an industrial group should not, by itself, significantly alter
CNH's operating fundamentals, competitive position, or debt
servicing capacity.

The ultimate financial structure of the automotive and industrial
groups has not yet been determined, and may not be finalized for
several months.  The final structure, to the extent that its
materially alters CNH's asset and liability profile, or its
liquidity position, could have an impact on CNH's credit quality
and rating.  As the details of this structure become more clearly
defined, Moody's will assess their potential impact on CNH.  Some
of the factors that will be considered include: 1) any increase or
decrease in the total amount of debt that must be serviced by CNH
and CNH Capital (currently US$14.9 billion); 2) the strategy for
refunding any CNH debt owed to Fiat (currently US$2.4 billion); 3)
the disposition of CNH cash deposits that are held at Fiat
(currently US$2.2 billion); 4) the availability of committed
credit facilities to CNH which are now shared with Fiat; and, 5)
the potential amount of debt at Fiat Industrial that might require
ongoing dividends from CNH in order to be serviced.  Case New
Holland's note issuance and the related repayment of debt owed to
Fiat are preliminary elements of the separation process.

Aside from the resolution of the Fiat/CNH separation, the key
driver of CNH's rating will be the pace and degree to which it can
strengthen its credit metrics through 2011.  For 2009 the
company's financial performance was very weak with EBITA/interest
of about .7x and debt/EBITDA over 10x.  During 2010 Moody's expect
that a moderate recovery in the agricultural equipment and
construction equipment markets, combined with the benefits of
restructuring initiatives, will result in metrics improving to
levels approximating these: EBITA/interest of 2.5x; debt/EBITDA of
4.0x; and free cash flow of $500 million.  Should CNH's
performance not remain on track for generating metrics
approximating these levels, the rating could come under pressure.
It will also be important for the company's finance operations to
maintain continued access to the securitization market, to
preserve its leverage near the current level of 6.5:1, and to
continue improving the past-due and charge-off performance of its
construction equipment receivable portfolio.

CNH's SGL-3 Speculative Grade Liquidity rating indicates adequate
liquidity over the coming twelve months, and is supported by the
company's US$3 billion cash position.  One factor which may limit
potential improvement in this rating is the finance operation's
need to maintain sizable and regular access to the ABS market in
order to fund its portfolio and provide adequate retail and
wholesale funding for the industrial operations.

The last rating action for CNH was an assignment of Ba3 to Case
New Holland on August 11, 2009.

Case New Holland Inc. is a wholly-owned subsidiary of CNH Global
N.V. which is headquartered in the Netherlands.  CNH is a leading
global producer of agricultural and construction equipment.


CASE NEW: S&P Assigns 'BB+' Rating on US$1 Bil. Senior Notes
------------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'BB+' issue-level
rating to Case New Holland Inc.'s proposed new US$1 billion senior
unsecured notes.  In addition, S&P placed the notes on CreditWatch
with developing implications, and assigned a recovery rating of
'4' to this debt, indicating S&P's expectation of average (30% to
50%) recovery in a payment default scenario.

The ratings on parent CNH Global N.V. remain on CreditWatch with
developing implications, where S&P had placed them on April 23,
2010.  The CreditWatch placement followed majority owner Fiat
SpA's demerger announcement that it would split the company's
automotive and industrial businesses by the end of this year.  The
CreditWatch developing reflects the potential for Standard &
Poor's to either raise or lower its ratings on CNH, depending on
S&P's assessment of the financial risk profile under the proposed
new structure.  S&P's review will consider the pro forma capital
structure, liquidity profile (including proposed funding sources
for the company's financing arm under the new structure), and
expected financial policy of the company.

Standard & Poor's expects to resolve the CreditWatch listing after
the company completes the demerger along with a review of the
capital structure and operating prospects.  S&P could revise the
CreditWatch implications to positive or negative as more
information related to the proposed financial profile emerges.

"If S&P expects CNH to pursue a moderate financial policy and
consider liquidity adequate, S&P could raise the corporate credit
rating," said Standard & Poor's credit analyst Dan Picciotto.  For
this to occur, S&P would expect adjusted equipment operations
funds from operations to total adjusted debt to exceed 30% over
the cycle and for CNH to retain comfortable access to funding
sources.

"Conversely, if operating performance is weak, the financial
policy appears likely to be more aggressive, or S&P does not
consider liquidity adequate, S&P could lower the ratings," he
continued.  S&P could also affirm the existing ratings if S&P
still consider the company's financial risk profile significant
after the demerger.


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


CB MOSKOMMERTSBANK: Fitch Gives Stable Outlook; Keeps 'CCC' Rating
------------------------------------------------------------------
Fitch Ratings has revised Moscow-based CB Moskommertsbank's
Outlook to Stable from Negative.  The Outlook change follows the
recent revision on the Outlook of MKB's parent, Kazakhstan's
Kazkommertsbank to Stable from Negative.

The ratings of CB Moskommertsbank reflect weaknesses in its
business model arising from its considerable reliance on wholesale
markets on the liabilities side and Fitch's heightened concerns
over the bank's asset quality.  The agency believes that KKB would
have a high propensity to support MKB, if needed.  Its ability to
provide support, however, may be limited by KKB's own weak credit
profile, as indicated by its Long-term Issuer Default Ratings of
'B-'.  Further rating actions on MKB are likely to depend on the
development of a more sustainable business model and on KKB's
ability to provide support to the bank in case of need.

The rating actions are:

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

  -- Short-term foreign currency IDR: affirmed at 'C'

  -- National Rating: affirmed at 'B-(rus)'; Outlook revised to
     Stable from Negative

  -- Individual Rating: affirmed at 'E'

  -- Support Rating: affirmed at '5'

MKB is a primarily mortgage bank.  MKB is 100%-owned by KKB.


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


SWEDBANK AB: Moody's Changes Outlook on 'D+' Rating to Stable
-------------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on the A2 bank debt and deposit rating and the D+ bank
financial strength rating (mapping to a Baa3 baseline credit
assessment) of Swedbank AB.  The outlook for the bank's
subordinated debt and preferred stock ratings were also changed to
stable.  The Prime-1 short-term rating was affirmed.  The outlook
for debt issued by Swedbank Mortgage AB guaranteed by Swedbank AB
was also changed to stable.  The debt ratings of the bank's other
subsidiaries were not affected by the change of outlook nor was
the bank's government guaranteed debt.

The stabilization of the outlook reflects Swedbank's improved
capital and funding position and a stabilization of the bank's
Baltic exposures combined with its robust Swedish market position.

In accordance with Basel II transitional rules, the bank's core
capital levels improved to 10.30% as at end-March 2010 from 8.10%
at year-end 2008.  Moody's notes that the improved capitalization
was mainly due to a SEK15 billion rights issue in 2009.  Liquidity
has improved and the bank has issued without government guarantee
since July 2009.  In addition, its funding maturity profile has
improved and it has been possible for its mortgage arm Swedbank
Mortgage to issue covered bonds uninterrupted in the market.
Asset quality remains a concern, but Moody's takes comfort from
the more stable outlook on the Baltic operations and also notes
that the current rating levels include a severe stress scenario
for the Baltic assets.  The rating agency also notes that the
bank's loan book outside Sweden accounts for almost 66% of overall
impairments, while the relatively well performing Swedish loan
portfolio continues to account for more than 80% of the total loan
book.

"Going forward, it will be important for Swedbank to execute its
strategy of strengthening its earnings by focusing on its core
business lines and to continue to improve its funding profile.  If
successfully implemented and -- in addition -- impairments in the
Baltic countries diminish, upward pressure could be exerted on
Swedbank's ratings," said Janne Thomsen, a Moody's Senior Vice
President and lead analyst for Swedbank.  Moody's notes that
Swedbank's Swedish business continues to display good
profitability as well as strong asset quality and efficiency
levels.  The bank also continues to maintain a leading position in
the Swedish retail banking market.

Moody's previous rating action on Swedbank was in February 2010,
when the Junior Subordinated debt and Tier 1 hybrid ratings were
downgraded to Ba1 and Ba3, respectively, with a negative outlook.

Headquartered in Stockholm, Sweden, Swedbank AB reported total
consolidated assets of SEK1,890 billion (EUR194 billion) at the
end of March 2010.


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


ANADOLU EFES: S&P Gives Positive Outlook; Affirms 'BB' Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised the
outlook on Turkey-based beverage group Anadolu Efes Biracilik ve
Malt Sanayii AS to positive from stable and affirmed the 'BB'
long-term corporate credit rating.

"The outlook revision reflects S&P's view that Anadolu Efes
demonstrated increased cash flow conversion capability in the
context of the group's sound capital structure and the improving
operating environment in Turkey," said Standard & Poor's credit
analyst Anton Geyze.

The group's international beer operations became a significant
contributor to its consolidated cash flows in 2009.  The improved
operating environment in Turkey is somewhat reflected in Standard
& Poor's positive rating action on Feb. 19, 2010, on the Republic
of Turkey (foreign currency BB/Positive/B; local currency
BB+/Positive/B; Turkish national scale trAA+/--/trA-1).

Anadolu Efes generated substantial discretionary cash flow after
capital expenditures and dividends in 2009: Turkish lira
(TRY)472 million (US$315 million) compared with TRY4million in
2008 and negative discretionary cash flow in 2007.  This was on
the back of tighter management of working capital and capital
expenditures.

S&P expects the group to continue generating increased levels of
discretionary cash flows.  It is likely that the group will use
part of these cash flows on acquisitions or shareholder
remuneration.  However, S&P expects Anadolu Efes to keep its debt
in line with levels it demonstrated in recent years--less than 2x
EBITDA.  Anadolu Efes' adjusted debt leverage equaled 1.0x in
2009, 1.6x in 2008, and 1.3x in 2007.

The rating on Anadolu Efes reflects the group's business exposure
to volatile emerging market economies, which is partly mitigated
by its dominant position in the Turkish market and a track record
of profitable growth across the group's entire franchise, together
with its sound capital structure.  The rating is constrained by
tough competition in the important Russian market and the group's
large share of unhedged foreign currency debt.

The positive outlook reflects S&P's expectation of an upgrade
within the next year if Anadolu Efes' increased discretionary cash
flow generation proves sustainable amid continuingly modest debt
leverage.

"S&P expects the group to continue preserving its sound capital
structure, with adjusted debt to EBITDA not exceeding 2x," said
Mr. Geyze.

The rating might come under pressure if leverage increases and
remains materially more than 2x fully adjusted debt to EBITDA
because of performance or acquisitions, regardless of currency
fluctuations.


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


BEMROSEBOOTH: Marks & Spencer Denies Role in Company's Woes
-----------------------------------------------------------
Helen Morris at PrintWeek reports that Marks & Spencer has denied
it is responsible for the closure of BemroseBooth's Derby sites,
following allegations it was partly to blame for the company's
problems.

According to PrintWeek, Unite regional officer Kathy Brooks
claimed BemroseBooth chief executive Jean-Paul Ansel had blamed
the closures on a number of factors, including M&S's decision to
stop dealing with the company.

PrintWeek notes M&S said BemroseBooth came to the decision to
withdraw the contract by itself and that it was in no way
dependent on the M&S contract, which it said had been due to run
until September 2011.  PrintWeek relates a spokeswoman for M&S
said BemroseBooth was "misleading its workforce by implying that
M&S was part of its decision".

Citing Companies House, PrintWeek says a new company, Bemrosebooth
Systems, was created on June 8 with Mr. Ansel and American
Industrial Acquisition Corp.'s Leonard Levie listed as directors.

PrintWeek recalls BemroseBooth filed a notice of intent to appoint
an administrator at the High Court of Justice on June 16,
suggesting it could be on the verge of administration.  Some 120
employees were made redundant from its Derby plant on June 21, 40
from its Derby-based head office and 26 from its Hull site on
June 22, PrintWeek relates.

PrintWeek notes David Rubin & Partners senior manager David
Stephenson told PrintWeek on June 22 that the company was not yet
in administration and an insolvency firm had not been appointed as
administrator.

BemroseBooth is a print firm based in Derby.


BL SUPERSTORES: S&P Affirms CCC- Ratings on Two Classes of Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its credit ratings on
BL Superstores Finance PLC's commercial mortgage-backed notes are
unchanged following property substitutions.

S&P understands that the borrower has removed four properties
(Birkenhead, Newport, Portsmouth, and Walthamstow) from the asset
portfolio and replaced them with two other properties (Durham and
Hoddesdon).  In this transaction, property substitutions are
permitted subject to certain criteria, all but two of which have
reportedly been met.

The transaction documentation permits substitutions that do not
meet its substitution criteria, if the rating agencies confirm
that the rating condition contained in the transaction documents
is satisfied.

The transaction's substitution criteria that are not met in this
instance are, S&P understands:

* The requirement that the value of the minimum contracted rental
  income for the incoming properties is not less than that for the
  outgoing properties.

* The requirement that rental income receivable from the incoming
  properties is not less than the rental income received from the
  outgoing properties.

In S&P's opinion, the income deterioration under the asset
portfolio following the substitutions is partly offset by longer
leases for the incoming properties and a marginal increase in the
overall portfolio value.  Accordingly, S&P does not believe that
the income deterioration (of around 1.15% of portfolio income) is
sufficient to prompt a revision of the existing ratings, at this
time.  Consequently, S&P has confirmed to BL Superstores that the
substitutions will not cause a revision of the ratings.

S&P notes however, that the substitutions will marginally weaken
the overall creditworthiness of the notes, partly eroding the
cushion within the existing ratings and hence leaving them more
susceptible to future downgrades.

BL Superstores closed in February 2006 and issued GBP753 million
commercial mortgage-backed notes backed by a secured loan.  This
loan was originally secured against a portfolio of 35 supermarkets
leased to J Sainsbury.  The bonds are subject to an amortization
schedule.  In accordance with the repayment schedule, the class D1
notes fully redeemed in April 2009.

                           Ratings List

                    BL Superstores Finance PLC
          GBP753 Million Fixed- And Floating-Rate Bonds

                        Class       Rating
                        -----       ------
                        A2          AAA
                        B2          A
                        B3          A
                        C1          BB
                        M1          AA

                           Ratings List

                         Avoca CLO V PLC
          EUR506 Million Floating- And Fixed-Rate Notes

                         Rating Lowered

                                  Rating
                                  ------
                Class        To              From
                -----        --              ----
                D            B-              BB-

                        Rating Withdrawn

                                  Rating
                                  ------
                Class        To              From
                -----        --              ----
                S combo      NR              CCC-

                         Ratings Affirmed

                        Class       Rating
                        -----       ------
                        A1a          AAA
                        A1b          AA+
                        A2           AA+
                        B            A
                        C1           BBB-
                        C2           BBB-
                        E            CCC-
                        F            CCC-
                        R            B

                        NR -- Not rated.


BRITISH AIRWAYS: Has Deal to Plug GBP3.7 Billion Pension Deficit
----------------------------------------------------------------
Norma Cohen and Pilita Clark at The Financial Times report that
British Airways on Tuesday struck a deal to plug the GBP3.7
billion hole in its two pension schemes.

According to the FT, the deal helps clear a potential obstacle to
the BA-Iberia tie-up, due to be completed by the end of this year
that has loomed since the merger was announced in November.

The FT notes as part of the recovery plan, BA has agreed with fund
trustees to keep its annual contributions at GBP330 million for
this year.  From next year, the airline will increase
contributions by 3% for at least the next 16 years, and some
employees will make higher payments, the FT says.

The FT relates Keith Williams, BA's chief financial officer, said
the airline had agreed not to make dividend payments to the
holding company to be set up after the BA-Iberia merger -- to be
known as International Airlines Group -- until the next valuation
of the pension schemes' assets, due by the end of 2012.  BA has
agreed to make extra pension deficit contributions if its year-end
cash balance is higher than GBP1.8 billion, the FT discloses.

The recovery plan must be approved by the Pensions Regulator, the
FT states.

                      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


CRAIN'S MANCHESTER: Lack of Advertising Prompts Closure
-------------------------------------------------------
Andrew Bounds at The Financial Times reports that US publisher
Crain Communications has shut Crain's Manchester Business because
of a lack of advertising.

According to the FT, Chris Crain, senior vice-president of the
Detroit-based group, which is believed to have spent heavily
propping up the loss-making publication, said: "Ultimately the
limited support from key advertising sectors has made the project
unsustainable."

The FT relates Mr. Crain said that in its almost three-year life
it had just 130 different advertisers.

Launched in August 2007, Crain's Manchester Business was a city-
based weekly business journal.  It was circulated among 11,500
business people in the Greater Manchester area, according to the
FT.


PEDERSEN UK: In Administration; Crowne Plaza Business as Usual
--------------------------------------------------------------
Pedersen UK, which operated the franchise of the Crowne Plaza
Reading, at Caversham Bridge, went into administration on June 16,
getbracknell reports.

According to the report, general manager Neil Muir said the
Intercontinental Hotel Group, which owns the Crowne Plaza brand,
is allowing the hotel to continue to run under the same name.

"It's business as usual and there will no impact on customers,"
the report quoted Mr. Muir saying.


* UNITED KINGDOM: To Impose Levy on Bank Balance Sheets
-------------------------------------------------------
Thomas Penny and Jon Menon at Bloomberg News, citing Chancellor of
the Exchequer George Osborne, report that Britain will raise more
than GBP2 billion (US$2.94 billion) a year through a levy on bank
balance sheets designed to discourage risky practices.

Bloomberg relates Mr. Osborne told the House of Commons on Tuesday
that the levy will fall on British banks and building societies
with assets of GBP20 billion or more, as well as branches and
subsidiaries of overseas lenders in the U.K. starting in January.

"In putting in order the nation's finances, we must remember that
this was a crisis that started in the banking sector," Bloomberg
quoted Mr. Osborne as saying.  "The failures of the banks imposed
a huge cost on the rest of society" and they must "make a more
appropriate contribution, which reflects the many risks they
generate."

According to Bloomberg, the Treasury said the levy, to be used for
general purposes, will be set at 0.04% when introduced in 2011,
rising to 0.07%.


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


* EUROPE: Eurozone Banks Face Increasing Funding Problems
---------------------------------------------------------
Ben Hall, Ralph Atkins and Jennifer Hughes at The Financial Times
report that investor worries over eurozone banks resurfaced on
Tuesday after a warning by a European Central Bank governing
council member that some faced funding difficulties.

According to the FT, the worries increased the cost of buying
protection against bond default in the sector.

The FT relates Christian Noyer, governor of the Banque de France,
appeared to go further than other ECB council members in admitting
that "some banks have started facing increasing funding problems".
The FT notes Mr. Noyer gave no further details but in an interview
with La Tribune suggested one reason for heightened nervousness
was the expiry at the end of this month of EUR442 billion in 12-
month loans provided by the ECB a year ago.

ECB policymakers have long worried that some banks have become
dependent on the unlimited liquidity it has pumped into the
market, which is at near-record levels, the FT states.


* EUROPE: Countries That Violate Debt Rules May Face Bond Levy
--------------------------------------------------------------
Meera Louis and James G. Neuger at Bloomberg News report that a
draft document showed that the European governments will consider
a imposing a charge on bond sales by countries that violate debt
rules in the wake of the Greece-driven fiscal crisis.

Countries that flout debt-reduction pledges could face "a levy in
the form of a predefined percentage (number of basis points) on
any issuance of government debt," Bloomberg says, citing a
European Commission proposal.

According to Bloomberg, the extra interest would be paid into a
blocked account and confiscated if the debt doesn't come back into
line.

Bloomberg relates finance ministers are under pressure to tighten
the coordination of budgets to prevent a repeat of the debt shock
that prompted European governments to pledge as much as EUR860
billion (US$1.1 trillion) to defend the euro.


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

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

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

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

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

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

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

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

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

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

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


                            *********

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

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

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

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

                            *********


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

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  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.

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

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

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


                 * * * End of Transmission * * *