TCREUR_Public/100708.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, July 8, 2010, Vol. 11, No. 133

                            Headlines



F R A N C E

CMA CGM: Close to Receiving Capital Injection


G E R M A N Y

ARCANDOR AG: Valovis Won't Back Berggruen's Rental Conditions
ARCANDOR AG: Berggruen Paid One Euro for Karstadt Unit
ARCANDOR AG: Karstadt Bondholders to Meet Over Berggruen Offer
DEUTSCHE LUFTHANSA: Has Profit-Sharing Deal With Ver.di Union
DEUTSCHE PFANDBRIEFBANK: S&P Keeps BB-Rated Notes on Watch Neg.

GECO 2002: S&P Downgrades Ratings on Class A-3 and A-4 Notes
SOCIETE GENERALE: S&P Withdraws 'CCC+' Rating on EUR40 Mil. Notes


I C E L A N D

KAUPTHING BANK: Impact of Foreign Loan Ruling on Arion Uncertain

* ICELAND: Banks to Lose US$4.3BB Following Foreign Loan Ruling


I R E L A N D

ANGLO IRISH: European Commission Doubtful of Business Plan
HSS: Bank of Scotland Appoints Martin Ferris as Receiver
STARLING FINANCE: S&P Withdraws 'CCC-' Rating on Class A-3 Notes


I T A L Y

CONSUM.IT: Moody's Assigns Caa2 Rating on Class C Notes


S P A I N

BANCAJA 10: S&P Puts 'BB'-Rated Class D Notes on Watch Negative
BARCELONA: Seeks EUR150 Million Loan to Help Pay Players & Staff
LA SEDA: May Go Bankrupt If EUR3000 Million Share Offering Fails


S W E D E N

FORD MOTOR: European Commission Clears Geely's Volvo Takeover
GENERAL MOTORS: Spyker Completes US$74 Million Saab Purchase

* SWEDEN: Bankruptcies Down 14% to 3,305 in First Half 2010


U K R A I N E

BANK FORUM: Fitch Upgrades Long-Term Foreign Currency IDR to 'B'
OSCHADBANK: Fitch Upgrades Long-Term Foreign Currency IDR to 'B'
PRAVEX BANK: Fitch Upgrades Long-Term Foreign Currency IDR to B
PROCREDIT BANK: Fitch Upgrades Local Currency IDR to 'B'
UKREXIMBANK: Fitch Upgrades Subordinated Debt Rating to 'CCC'

UKRSOTSBANK: Fitch Affirms Individual Rating at 'E'
UKRSIBBANK: Fitch Upgrades Senior Unsecured Debt Rating to 'B'
VTB BANK: Fitch Affirms Individual Rating at 'E'

* Fitch Upgrades Republic of Ukraine's 'B' Issuer Default Rating


U N I T E D   K I N G D O M

ARRAN CORPORATE: S&P Affirms CCC+ Ratings on F1, F2, F3 Notes
BRITISH AIRWAYS: Mounts War of Attrition Against Cabin Crew
SOUTHEND UNITED: Faces Legal Challenge From HMRC Over Tax Debt


X X X X X X X X

* S&P Takes Various Rating Actions on Nine European CDO Deals
* CMS Camerons' Robert Hickmott to Join Quinn Emanuel

* Upcoming Meetings, Conferences and Seminars




                         *********



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F R A N C E
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CMA CGM: Close to Receiving Capital Injection
---------------------------------------------
Robert Wright at The Financial Times reports that CMA CGM looks
close to receiving a capital injection from Qatar's sovereign
wealth fund after it said it expected a deal by the end of July.

According to the FT, CMA CGM said it needed only a few weeks to
complete a deal in spite of missing the latest of several
deadlines to find new cash.

The FT notes that while CMA CGM declined to say which investors
were still participating in the talks, which have been under way
since September, several people involved said the frontrunner
remained Qatari Holdings, the investment arm of the Qatar
Investment Authority.  Qatari Holdings looks likely to take a
stake of up to 49%, the FT says.

According to the FT, a key sticking point was whether the family
of Jacques Saade, the founder of CMA CGM, would retain control.

The talks have been prolonged in part by a turnaround in the
trading position of CMA CGM and other large container lines, the
FT states.  The FT says the recovery has also encouraged creditors
to reject CMA CGM's initial demands that they write off some
loans.  Creditors remain anxious that CMA CGM restructures to
finance its substantial order book of ships, the FT discloses.

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


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G E R M A N Y
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ARCANDOR AG: Valovis Won't Back Berggruen's Rental Conditions
-------------------------------------------------------------
Aaron Kirchfeld at Bloomberg News reports that Valovis Bank AG, a
creditor to Arcandor AG's insolvent retailer Karstadt AG, said it
can't agree to rental conditions demanded by the department-store
company's selected buyer Berggruen Holdings Ltd., endangering the
takeover's completion.

Bloomberg relates Hanns-Eberhard Schleyer, a lawyer advising
Essen, Germany-based Valovis Bank, said in a conference call with
reporters Tuesday that the lender won't approve conditions that
would retain rental reduction agreements even in the case of
insolvency or further sale.  Valovis says it's Karstadt's biggest
creditor and holds 36 department stores as collateral, Bloomberg
discloses.

According to Bloomberg, Mr. Schleyer said Valovis Bank would face
"significant liability and legal risks" under Berggruen's demands.
Mr. Schleyer, as cited by Bloomberg, said that while Valovis has
agreed to reduce rents to EUR112 million from EUR141 million for
Berggruen, it can't accept applying the agreement in the case of a
further insolvency or sale of Karstadt department stores because
it would reduce the value of the stores it controls.

Bloomberg notes Mr. Schleyer said Valovis is seeking a meeting
with Berggruen and other interested parties to reach a "reasonable
solution".

                        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.


ARCANDOR AG: Berggruen Paid One Euro for Karstadt Unit
------------------------------------------------------
Karin Matussek at Bloomberg News, citing Bild am Sonntag, reports
that Nicolas Berggruen, who bought Arcandor AG's insolvent German
retailer Karstadt, paid one euro (US$1.25) for the company.

According to Bloomberg, the newspaper said the purchase offer
dated June 4 also included an extra payment of EUR5 million for
trademark rights on the brand name Karstadt.

Bloomberg notes an unidentified Berggruen spokesman, as cited by
the newspaper, said the purchase agreement also obliges Berggruen
to inject EUR65 million of capital and to reinvest future profits.

                        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.


ARCANDOR AG: Karstadt Bondholders to Meet Over Berggruen Offer
--------------------------------------------------------------
William Launder at Dow Jones Newswires reports that a group of
bondholders representing the debt of Arcandor AG's insolvent
German retailer Karstadt's properties has called a special meeting
in London on July 28 to discuss some of the terms of the takeover
offer for Karstadt proposed by billionaire investor Nicholas
Berggruen.

Dow Jones relates the bondholders group, which represents senior
class A noteholders in the so-called Fleet Street Finance Two PLC
securitization, has called the meeting ahead of after Berggruen
proposed a July 6 deadline for real estate consortium Highstreet
or other noteholders to call such a meeting.  Fleet Street Finance
is a securitization that consists of debt of Karstadt properties,
which Highstreet owns the bulk of through a sale and lease-back
agreement, Dow Jones discloses.

Highstreet, as of Tuesday evening, had not presented a plan for
such a meeting, Dow Jones states.

The noteholders meeting is due to take place on July 28 at 10 a.m.
local U.K. time, or 9:00 GMT, Dow Jones says, citing a notice sent
to noteholders.

It wasn't clear if the plan for a noteholders' meeting would
trigger an extension of the deal negotiations until July 30 as
Berggruen proposed last week, Dow Jones notes.

As reported by the Troubled Company Reporter-Europe on July 5,
2010, Dow Jones said that Mr. Berggruen asked the insolvency
administrator of Karstadt to extend the deadline for
completing negotiations with Karstadt property owner Highstreet
until July 30, as talks to seal a deal are behind schedule and
unlikely to finish before the current deadline.  Dow Jones
disclosed Mr. Berggruen signed a tentative agreement to
acquire the iconic department store brand last month, but closing
the deal hinges on reaching an agreement with its property owners,
including the Highstreet real estate consortium led by Goldman
Sachs Group Inc.  Dow Jones noted Mr. Berggruen already secured
approval from the majority of shareholders and lenders in the
Highstreet consortium, but doubts he can meet the deadline with
all of its lenders by the current July 15 deadline.  Dow Jones
said failure to reach an agreement would result in cancelling the
deal and start a break-up process for Karstadt, a giant department
store chain that employs more than 25,000 people around Germany.
Dow Jones disclosed Mr. Berggruen further demanded that Highstreet
obtains internal approval by July 14 to the terms of the Karstadt
acquisition he has proposed.  Citing a copy of the term sheet, Dow
Jones said Mr. Berggruen requested that Karstadt pay an annual
rent of EUR210 million until September 2011.  Rents will then
gradually rise to EUR240 million by September 2018, Dow Jones
noted.  Mr. Berggruen further wants to revise Karstadt's master
lease agreement so that the department store will consist of
standard, sports and premium units, and have an umbrella holding
company, according to Dow Jones.  He also wants Highstreet to
invest EUR30 million in Karstadt, with his company contributing
EUR70 million, Dow Jones stated.

                        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.


DEUTSCHE LUFTHANSA: Has Profit-Sharing Deal With Ver.di Union
-------------------------------------------------------------
Tom Lavell at Bloomberg News reports that the Ver.di union said
Wednesday that Deutsche Lufthansa AG and the labor group have
reached agreements on profit-sharing for employees as well as
shortened hours for older workers.

According to Bloomberg, Erhard Ott, Ver.di's chief negotiator,
said other points are likely to be agreed on after further talks.

                            Mediation

As reported by the Troubled Company Reporter-Europe on June 28,
2010, Bloomberg News said that Lufthansa avoided a new round of
pilot walkouts after the Vereinigung Cockpit union accepted a
mediation proposal.  Bloomberg disclosed the German union said the
proposal by mediator Klaus von Dohnanyi accommodates both the
desire of the pilots to keep jobs from being moved abroad as well
employee contributions to the company's economic future.
Bloomberg noted the union said in an e-mailed statement that the
proposal foresees a freeze on pay increases through March of next
year and all of the pilots' contributions are linked to guarantees
on existing jobs and growth.

                               Loss

On May 6, 2010, the Troubled Company Reporter-Europe, citing the
Financial Times, reported that Lufthansa posted a net loss of
EUR298 million in the first quarter of 2010, compared with a net
loss of EUR267 million in 2009.  The FT disclosed the German
airline blamed losses that were wider than expected partly on
higher fuel charges and costs from the consolidation of Austrian
Airlines and bmi, which Lufthansa does not expect to be profitable
in 2010.  Lufthansa has estimated costs from the volcanic
disruption at about EUR200 million, according to the FT.  The FT
said a strike by Lufthansa pilots in February was another factor
and was estimated by the airline to have cost about EUR48 million.

Deutsche Lufthansa AG -- http://www.lufthansa.com/-- is an
aviation company with operations worldwide.  It operates in five
business segments: Passenger Transportation, Logistics,
Maintenance, Repair and Overhaul (MRO), Information Technology
(IT) services and Catering.  On January 22, 2008, it acquired 19%
of the shares in JetBlue Airways.  In October 2008, Lufthansa
established an Italian company called Lufthansa Italia as it mulls
to make Milan based Malpensa airport its third hub after Frankfurt
and Munich.  In September 2009, Austrian Airlines AG was taken
over by Deutsche Lufthansa AG.  Austrian Airlines will therefore
become part of the Lufthansa Group as of September 2009.

                           *     *     *

Deutsche Lufthansa AG continues to carry a Ba1 Corporate Family
Rating and Probability of Default Rating from Moody's Investors
Service with stable outlook.  The ratings were assigned by Moody's
in September 2009.


DEUTSCHE PFANDBRIEFBANK: S&P Keeps BB-Rated Notes on Watch Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services kept on CreditWatch negative
its ratings on the class E and F notes in Deutsche Pfandbriefbank
AG's ESTATE Pan-Europe 5 transaction.  This follows a downgrade of
the public credit covered securities that secure the class E and F
notes.

On April 16, 2010, S&P lowered to 'AA/Watch Dev' from 'AAA/Watch
Neg' S&P's rating on the public credit covered securities issued
by DEPFA ACS Bank.

S&P had previously placed on CreditWatch negative its ratings on
ESTATE Pan-Europe 5's class E and F notes on Oct. 1, 2008,
following a CreditWatch negative placement of the note collateral.

As described in S&P's new issue report dated Feb. 4, 2008, the
rating on the notes will not exceed the rating on the credit
covered securities.  The ratings on the class E and F notes
therefore remain unchanged because their ratings remain below the
rating on the note collateral.

The ratings on the class A1+ to D notes are also unaffected
because they are not secured on these securities.

                           Ratings List

                    Deutsche Pfandbriefbank AG
  EUR286.25 Million Floating-Rate Amortizing Credit-Linked Notes
                       (ESTATE Pan-Europe 5)

               Ratings Kept on Creditwatch Negative

                     Class       Rating
                     -----       ------
                     E           BBB/Watch Neg
                     F           BB/Watch Neg

                        Ratings Unaffected

                        Class       Rating
                        -----       ------
                        A1+         BBB
                        A2          BBB
                        B           BBB
                        C           BBB
                        D           BBB


GECO 2002: S&P Downgrades Ratings on Class A-3 and A-4 Notes
------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'AA+' from 'AAA' its
credit ratings on GECO 2002 Ltd.'s class A-3 and A-4 credit-linked
notes, following a downgrade of the collateral securing the notes.
At the same time, S&P revised the CreditWatch placement to
developing from negative.  All other classes are unaffected.

On April 16, 2010, S&P lowered to 'AA+/Watch Dev' from 'AAA/Watch
Neg' S&P's rating on the public-sector Pfandbriefe issued by
Deutsche Pfandbriefbank that secure the class A-3, A-4, B, and C
credit-linked notes in this transaction.

According to the transaction documentation, the transaction
parties were required to take a remedial action within 30 calendar
days of the downgrade of the public-sector Pfandbriefe, which
could include a substitution of the Pfandbrief collateral.  To
S&P's knowledge, there has been no such remedial action to date.

As S&P pointed out in its new issue report dated Jan. 30, 2003,
the ratings on each class of credit-linked notes will not exceed
the rating on the note collateral for that class.  The rating
action is a consequence of this structure.

Although the downgrade of the note collateral affects the class A-
3 and A-4 notes, the class B and C notes are currently unaffected.
The ratings are also unaffected on the class D and E notes, which
are secured on medium-term notes, also issued by Deutsche
Pfandbriefbank.

                            Ratings List

                           GECO 2002 Ltd.
  EUR594.25 Million Floating-Rate Amortizing Credit-Linked Notes
            and Floating-Rate Amortizing Funding Notes

              Ratings Lowered and CreditWatch Revised
                    to Developing From Negative

                                Rating
                                ------
            Class        To               From
            -----        --               ----
            A3           AA+/Watch Dev    AAA/Watch Neg
            A4           AA+/Watch Dev    AAA/Watch Neg

                        Ratings Unaffected

                        Class        Rating
                        -----        ------
                        B            AA
                        C            A
                        D            BBB
                        E            BB


SOCIETE GENERALE: S&P Withdraws 'CCC+' Rating on EUR40 Mil. Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'CCC+' credit
rating on the EUR40 million floating-rate credit-linked
schuldschein "spatburgunder" between Societe Generale and
Landesbank Baden-Wrttemberg.

This transaction is a European collateralized debt obligation
structured as a loan between Societe Generale, acting through its
Frankfurt branch, as borrower and LBBW (initially LRI Landesbank
Rheinland-Pfalz International S.A.), as lender.

The parties to the transaction have requested that the rating be
withdrawn.


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KAUPTHING BANK: Impact of Foreign Loan Ruling on Arion Uncertain
----------------------------------------------------------------
The resolution committee of Kaupthing Bank hf said it remains
unclear what impact a June 16 Supreme Court ruling banning some
foreign loans will have on asset values at Arion Bank, the state-
created successor to Kaupthing, Omar R. Valdimarsson at Bloomberg
News reports, citing an e-mailed statement received late Tuesday.

"Arion Bank has estimated the possible effects on its
capital base and the loan book but until the Supreme Court has
made judgments on other similar cases, the magnitude of effects
cannot be estimated with any certainty," Bloomberg quoted the
resolution committee as saying.

Bloomberg recalls the June ruling found that two private loans and
one corporate loan given in kronur but linked to foreign currency
rates were illegal.

                      About Kaupthing Bank

Headquartered in Reykjavik, Kaupthing Bank --
http://www.kaupthing.com/-- is Iceland's largest bank and among
the Nordic region's 10 largest banking groups.  With operations in
more than a dozen countries, the bank offers a range of services
including retail banking, corporate finance, asset management,
brokerage, private banking, treasury, and private wealth
management.  Kaupthing was created by the 2003 merger of
Bunadarbanki and Kaupthing Bank.  In October 2008 the Icelandic
government assumed control of Kaupthing Bank after taking similar
measures with rivals Landsbanki and Glitnir.

As reported by the Troubled Company Reporter on Nov. 30, 2008,
Olafur Gardasson, assistant for Kaupthing Bank hf., in a
proceeding under Act No. 21/1991, pending before the Reykjavik
District Court, and foreign representative of the Debtor, filed a
petition under chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.


* ICELAND: Banks to Lose US$4.3BB Following Foreign Loan Ruling
---------------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that Finance
Minister Steingrimur J. Sigfusson said Iceland's lenders stand to
lose as much as US$4.3 billion, after a court ruling last month
found that some foreign loans were illegal.

"This is the largest single loan category of the banks, with a
value of between 800 billion kronur and 900 billion kronur (US$7.2
billion)," Mr. Sigfusson told radio station Bylgjan Monday,
Bloomberg relates.  "If the capital on all these loans is written
down by 40 percent to 60 percent, we're talking about enormous
amounts."

Bloomberg recalls the Supreme Court ruled June 16 that loans
indexed to foreign-currency rates were illegal in three cases
involving private car loans and a corporate property loan.
According to Bloomberg, the decisions may mean that borrowers with
such loans are only obliged to repay the principal in kronur,
making the lenders liable for currency losses on about US$28
billion in debt after a third of the krona's value against the
Japanese yen and Swiss franc was erased since September 2008.

The June 16 decision didn't make clear whether lenders are obliged
to accept the lower contractual interest rates that the loans were
entered at, or whether they can charge higher Icelandic rates on
the krona debt, Bloomberg notes.  The central bank and the
Financial Supervisory Authority have recommended lenders be
allowed to charge Iceland rates to cap their losses, sparking
protests by borrowers, Bloomberg states.


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=============


ANGLO IRISH: European Commission Doubtful of Business Plan
----------------------------------------------------------
BreakingNews.ie reports that Finance Minister Brian Lenihan is
under pressure to explain what the Irish government intends to do
with Anglo Irish Bank after the European Commission expressed
concern about the bank's business plan.

According to the report, management at Anglo want to split the
institution into a "good bank", which would be kept open for new
lending, and a "bad bank" which would be wound down.

The report says the EC has expressed concern about Anglo's claim
that by 2014 the bank can return to the levels of profit it was
making during the boom.

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at September
30, 2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on April 7,
2010, Fitch Ratings affirmed Anglo Irish Bank Corporation's lower
Tier 2 subordinated debt downgraded to 'CCC' from 'BBB+'.  Fitch
affirmed the rating on the bank's Upper Tier 2 subordinated notes
at 'CC'.  It also affirmed the rating on the bank's Tier 1 notes
at 'C'.


HSS: Bank of Scotland Appoints Martin Ferris as Receiver
--------------------------------------------------------
Niamh Hennessy at Irish Examiner.com reports that Martin Ferris of
Ferris & Associates has been appointed as receiver to the company
HSS, trading as Citywest hotel, golf and leisure, by Bank of
Scotland (Ireland) Limited.

According to the report, Mr. Ferris said he intends appointing an
operator to continue trading the business as a going concern.  The
appointment also includes the assets of Jeffel, a land holding
company, the report notes.

The report says the hotel's chief executive Sean Whelan described
the decision to appoint a receiver as premature.  He said they are
considering their legal options, the report discloses.  The report
relates Mr. Whelan said the hotel has been and still is in
negotiations with what he called a substantial investor to buy the
entire property.

HSS consists of a Citywest hotel, a conference center and a
leisure and golf resort.  About 400 people are employed by HSS,
according to Irish Examiner.com.


STARLING FINANCE: S&P Withdraws 'CCC-' Rating on Class A-3 Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'CCC-' credit
rating on Starling Finance PLC's JPY1 billion class A-3 floating-
rate Deveron portfolio credit-linked notes series 2005-08.

Starling Finance recently notified us that it fully repurchased
the notes on June 28, 2010.  S&P has thus withdrawn the rating on
the notes.

Starling Finance series 2005-08 is a collateralized debt
obligation of corporate investment-grade assets transaction.


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I T A L Y
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CONSUM.IT: Moody's Assigns Caa2 Rating on Class C Notes
-------------------------------------------------------
Moody's Investors Service has assigned definitive credit ratings
to this class of Notes issued by Consum.it Securitization S.r.l.:

  -- Aaa to the EUR1,710,050,000 Class A Asset Backed Fixed Rate
     Notes due 2025.

  -- Aa3 to the EUR540,000,000 Class B Asset Backed Fixed Rate
     Notes due October 2025.

  -- Caa2 to the EUR750,000,000 Class C Asset Backed Fixed Rate
     Notes due October 2025.

The EUR 132,300,000 Class D Fixed Rate Notes due 2025 are not
rated.

The transaction is the first securitization by Consum.it S.p.A.
the wholly-owned subsidiary of Banca Monte dei Paschi di Siena
S.p.A.  The Notes are backed by a portfolio of unsecured consumer
(70% of the pool at close) and auto loan receivables (30% at
close) resulting from amortizing loans granted to mainly Italian
private clients.  In order to fund the purchase price of the
portfolio, Consum.it Securitization S.r.l. will issue three
classes of rated notes and an unrated class which will fund the
reserve fund.  The three classes of rated notes are scheduled to
be repaid in sequential order.  The transaction structure
envisions a revolving period, subject to specific eligibility
criteria and triggers, until the payment date falling in March
2012, followed by an amortization phase.

According to Moody's, the ratings take account of, among other
factors, the reserve fund in an amount of 4% of the initial rated
notes balance, which covers initially 6 months of senior expenses
and interest on the notes.  The reserve, which does not amortize,
serves both as credit enhancement throughout the duration of the
deal and liquidity to the transaction in the event of servicer
disruptions.  There is furthermore a commingling guarantee from
MPS directly covering the equivalent of 4 months' of collections
should the servicer fail to transfer collections.

Risks related to the fact that Consum.it S.p.A. as servicer as an
unrated entity have been taken into consideration in these
structural mechanisms: (i) the commingling reserve at closing as
previously mentioned, (ii) back-up servicer arrangement (MPS
(A1/P-1) at closing (iii) sweep of collections within one business
day to the SPV's account, (iv) a separate cash administrator, (v)
the reserve fund as mentioned above and exisitng relationship as
part of the MPS group.

The rating of the Notes are based upon the analysis of the
characteristics of the pool of assets backing the Notes, the
protection the Notes receive from credit enhancement against
defaults and arrears in the pool, the legal and structural
integrity of the issue and the credit quality of the parties
involved in the transaction.

Moody's utilized, as part of its analysis of the portfolio, the
historical performance data provided by the originator.  The
historical analysis has been complemented with the evaluation of
the general market trend and other qualitative considerations and
comparison to market data and other portfolios.  In the modeling
of the transaction, Moody's assumed a default distribution with a
lognormal shape for the pool.  The main inputs to the modeling
were the assumed mean default of the entire pool of 8.4%, a
standard deviation of 3.36% and recoveries at 5%.  The model
stressed for the fact that during the revolving period the
consumer loans (which are the worse performing of the two asset
pools) could increase to 85%.  In addition, Moody's has also
considered this in its quantitative assessment by assuming, for
example, an additional stress on the yield to take into account
prepayment and defaults of higher yielding assets.

The transaction V Score is overall "Medium".  This is driven by
the lack of experience of the originator and servicer, this being
its first securitization transaction, although its parent's does
have extensive experience.  Furthermore, on the positive side, the
appointment of a back-up servicer at close was taken into account.
Additional aspects of uncertainty were associated to the higher
levels of default in the pool compared to other transactions and
some concerns on the accuracy of the data.

The ratings address the expected loss posed to investors by the
legal final maturity.  In Moody's opinion, the structure allows
for timely payment of interest and ultimate payment of principal
at par on or before the rated final legal maturity date for Class
A and B and ultimate payment of interest and principal at par on
or before the rated final legal maturity date for Class C.
Moody's ratings address only the credit risks associated with the
transaction.  Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.

There has been no previous rating action on this transaction.

Moody's will monitor this transaction on an ongoing basis.


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


BANCAJA 10: S&P Puts 'BB'-Rated Class D Notes on Watch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its credit ratings on all classes of notes in Bancaja 10 Fondo de
Titulizacion de Activos and Bancaja 11 Fondo de Titulizacion de
Activos.

S&P has observed a continued deterioration in the credit quality
of the underlying portfolios.  S&P reviewed Bancaja 10 and Bancaja
11 in November 2008 and downgraded some of the junior classes due
to a rapid increase in long-term arrears.

Since then, delinquencies have continued to grow significantly.
As per the latest investor report, defaulted loans represented
3.23% of the pool in Bancaja 10, and 3.46% in Bancaja 11 --
compared with 0.37% and 0.37%, respectively, at the same time last
year.

Based on these delinquency figures, S&P believes the likelihood of
a rapid increase in defaults, and the fact that both reserve funds
have become fully drawn since the last review, may lead to
negative rating actions.

Given the transactions' current performance, S&P anticipates that
a significant portion of the current long-term arrears will roll
into default -- increasing, in S&P's opinion, the likelihood of a
breach of the interest-deferral trigger.

The reserve funds in both transactions are fully drawn.  S&P
believes this may soon adversely affect the whole structure in
both transactions.  Also, as credit enhancement for the junior
classes decreases, it negatively affects the 'AAA' rated notes
even if the interest-deferral trigger has not been breached.

S&P will now analyze the current characteristics of the underlying
portfolios and cash flow mechanics in Bancaja 10 and 11, to
investigate whether this warrants any change to the current
ratings on the notes.  S&P will report the results of its review
and any rating changes in due course.

The Bancaja deals are Spanish residential mortgage-backed
securities transactions backed by pools of first-ranking mortgages
secured over owner-occupied residential properties in Spain.
Bancaja originated the mortgage loans.

                           Ratings List

              Ratings Placed on Creditwatch Negative

           Bancaja 10, Fondo de Titulizacion de Activos
       EUR2.631 Billion Mortgage-Backed Floating-Rate Notes

                                  Rating
                                  ------
            Class        To                      From
            -----        --                      ----
            A2           AAA/Watch Neg           AAA
            A3           AAA/Watch Neg           AAA
            B            A/Watch Neg             A
            C            BBB-/Watch Neg          BBB-
            D            BB-/Watch Neg           BB-

           Bancaja 11, Fondo de Titulizacion de Activos
       EUR2.022 Billion Mortgage-Backed Floating-Rate Notes

                                  Rating
                                  ------
            Class        To                      From
            -----        --                      ----
            A2           AAA/Watch Neg           AAA
            A3           AAA/Watch Neg           AAA
            B            A/Watch Neg             A
            C            BBB-/Watch Neg          BBB-
            D            BB-/Watch Neg           BB-


BARCELONA: Seeks EUR150 Million Loan to Help Pay Players & Staff
----------------------------------------------------------------
Roger Blitz at The Financial Times reports that Barcelona
president Sandro Rosell said the Spanish football club is seeking
a EUR150 million loan to help pay player and staff wages.

The FT relates Mr. Rosell, who took up his post last week, said
the credit request was sought by the previous Barcelona board,
"knowing that there weren't sufficient resources".

According to the FT, Mr. Rosell also expressed concerns about
money the club is owed by its TV rights partner Mediapro, which
last month announced it was seeking bankruptcy protection over a
dispute with a pay-TV company.  The seven-year contract, worth
EUR1 billion, runs until 2013, the FT says.

The FT notes that while the president said he had been given
assurances by Mediapro that the money would be paid, unlike its
rivals Real Madrid, Barcelona had only "a verbal guarantee of
payment".

The FT recounts Mr. Rosell also said the sale of one of the club's
players, Dmitro Chygrynskiy, for EUR15 million, had been motivated
by financial needs as well as football considerations.

"We found the club in debt and with cashflow tensions but we're
sorting that out," the FT quoted Mr. Rosell as saying, adding that
the situation would be resolved in the next few days.
"The club isn't bankrupt.  This week we'll have everything in
place to impose a policy of austerity to be able to make savings
in unnecessary areas and meet very important commitments such as
paying the wages of our players, coaches and employees."

Futbol Club Barcelona, also known simply as Barcelona and
familiarly as Barca, is a football club based in Barcelona,
Catalonia, Spain.


LA SEDA: May Go Bankrupt If EUR3000 Million Share Offering Fails
----------------------------------------------------------------
Ivan Castano Freeman at just-style reports that Spain's stock
market watchdog CNMV said on Friday that La Seda de Barcelona
could go bankrupt if it fails to raise EUR300 million (US$376
million) in a share offering.

The report relates that in a statement, La Seda said it will
launch the offer on July 19 for which existing investors have
committed EUR100 million.  As part of the transaction, the company
hopes excising creditors will exchange up to EUR150 million of
debt into equity, the report says.

According to the report, the statement noted that if La Seda fails
to raise the funds in their entirety, the company would fail its
restructuring plan and likely be forced into bankruptcy.

La Seda de Barcelona is a Spanish textile fibers firm.


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


FORD MOTOR: European Commission Clears Geely's Volvo Takeover
-------------------------------------------------------------
Alessandro Torello at Dow Jones Newswires reports that the
European Commission cleared on Tuesday Chinese Zhejiang Geely
Holding Group Co. and the country's investment firm Daqing to take
over Swedish carmaker Volvo from Ford Motor Co.

"The Commission concluded that the transaction wouldn't
significantly impede effective competition [in the European
market]," Dow Jones quoted the European Union's antitrust body as
saying in a statement.

On April 1, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that Geely plans to invest US$900 million
in Volvo as it works to turn the unprofitable Swedish carmaker
around.  Bloomberg disclosed Geely founder Li Shufu said the
company raised about US$2.7 billion to fund the Volvo purchase and
operations, half of it from overseas.

                         About Ford Motor

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

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

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

As reported by the Troubled Company Reporter on March 18, 2010,
Moody's Investors Service raised Ford's Corporate Family Rating
(CFR) and Probability of Default Rating (PDR) to B2 from B3,
secured credit facility to Ba2 from Ba3, senior unsecured debt to
B3 from Caa1, trust preferred to Caa1 from Caa2, and Speculative
Grade Liquidity rating to SGL-2 from SGL-3. Also raised is Ford
Credit's senior debt rating to B1 from B2.

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


GENERAL MOTORS: Spyker Completes US$74 Million Saab Purchase
------------------------------------------------------------
American Bankruptcy Institute reports that the Netherlands' Spyker
Cars NV said Monday that it got its US$74 million acquisition of
iconic Swedish rival Saab Automobile AB to the finish line two
weeks early.

                         About General Motors

With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers.  GM employs 207,000 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 the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, Germany, the United Kingdom,
Canada, and Italy.  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)


* SWEDEN: Bankruptcies Down 14% to 3,305 in First Half 2010
-----------------------------------------------------------
The Local, citing credit reporting company UC, reports that
bankruptcies in Sweden declined by 14% to 3,305 in the first half
of 2010 compared to the corresponding period of last year.

According to The Local, by far the biggest fall was in the trade,
private services and construction sectors.  Most industries in
many counties reported a declining number of bankruptcies, The
Local notes.

In June, 613 companies declared bankruptcy, a decrease of 10%, The
Local discloses.  The Local says the largest companies that have
gone bankrupt in 2010 had between 150 and 250 employees with net
sales of between SEK250 billion (US$32.65 billion) to SEK700
billion.  UC maintains its projection of a 10% decline in
bankruptcies in 2010, representing over 6,200 companies going
bankrupt this year, The Local states.


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


BANK FORUM: Fitch Upgrades Long-Term Foreign Currency IDR to 'B'
----------------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default ratings of
eight Ukrainian banks to 'B' from 'B-'.  The Outlooks on the Long-
term IDRs are Stable.  This follows the upgrade of Ukraine's Long-
term foreign and local currency IDRs to 'B' from 'B-' with a
Stable Outlook.

The upgrades of UkrSibbank, Ukrsotsbank, Forum, ProCredit Ukraine,
Pravex and VTB Ukraine follow the upgrade of Ukraine's Country
Ceiling to 'B' from 'B-'.  The Country Ceiling of Ukraine, which
reflects transfer and convertibility risks, constrains the banks'
Long-term foreign currency IDRs as it limits the extent to which
support from the majority foreign shareholders of these banks can
be factored into the ratings.  Their 'B+' Long-term local currency
IDRs also take into account Ukrainian country risks.

UkrSibbank is 81%-owned by France's BNP Paribas ('AA-'/Stable);
Ukrsotsbank is 95%-owned by Italy-based UniCredit S.p.A.
('A'/Negative) through its Vienna subsidiary UniCredit Bank
Austria AG ('A'/Stable); Forum is majority-owned (89%) by
Germany's Commerzbank AG ('A+'/Stable); ProCredit Ukraine is 60%-
owned by Germany's ProCredit Holding AG ('BBB-'/Stable); Pravex is
100%-owned by Italy's Intesa Sanpaolo S.p.A. ('AA-'/Stable) and
VTB Ukraine is more than 99%-owned by Russia's JSC Bank VTB
('BBB'/Stable).

The upgrades of state-owned Oschadbank and Ukreximbank reflect the
improved ability of the government to provide support in case of
need, as reflected in the upgrade of Ukraine's Long-term IDRs,
while the propensity to support would likely be significant, based
on the banks' state ownership and their policy roles.
Ukreximbank's better (relative to Oschadbank) standalone credit
profile is reflected in its higher Individual rating.

Fitch will in the near future review further the Individual
ratings of the aforementioned banks, as well as the ratings of
domestically-owned banks not covered in this announcement (PJSC CB
Privatbank ('B-'/Stable, Bank Khreschatyk ('B-'/Negative), Bank
Pivdennyi ('B-'/Negative) and Industrialbank ('CCC'/Negative)).

JSC UkrSibbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Ukrsotsbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Bank Forum:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

ProCredit Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'D/E'

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

Pravex Bank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC VTB Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC State Savings Bank of Ukraine (Oschadbank):

  -- Long-term foreign and local currency IDRs: upgraded to 'B'
     from 'B-'; Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'E'

  -- National Long-term rating: upgraded to 'AA-(ukr)' from
     'A+(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Subordinated debt: upgraded to 'CCC' from 'CC'; Recovery
     Rating 'RR6'

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'D'

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


OSCHADBANK: Fitch Upgrades Long-Term Foreign Currency IDR to 'B'
----------------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default ratings of
eight Ukrainian banks to 'B' from 'B-'.  The Outlooks on the Long-
term IDRs are Stable.  This follows the upgrade of Ukraine's Long-
term foreign and local currency IDRs to 'B' from 'B-' with a
Stable Outlook.

The upgrades of UkrSibbank, Ukrsotsbank, Forum, ProCredit Ukraine,
Pravex and VTB Ukraine follow the upgrade of Ukraine's Country
Ceiling to 'B' from 'B-'.  The Country Ceiling of Ukraine, which
reflects transfer and convertibility risks, constrains the banks'
Long-term foreign currency IDRs as it limits the extent to which
support from the majority foreign shareholders of these banks can
be factored into the ratings.  Their 'B+' Long-term local currency
IDRs also take into account Ukrainian country risks.

UkrSibbank is 81%-owned by France's BNP Paribas ('AA-'/Stable);
Ukrsotsbank is 95%-owned by Italy-based UniCredit S.p.A.
('A'/Negative) through its Vienna subsidiary UniCredit Bank
Austria AG ('A'/Stable); Forum is majority-owned (89%) by
Germany's Commerzbank AG ('A+'/Stable); ProCredit Ukraine is 60%-
owned by Germany's ProCredit Holding AG ('BBB-'/Stable); Pravex is
100%-owned by Italy's Intesa Sanpaolo S.p.A. ('AA-'/Stable) and
VTB Ukraine is more than 99%-owned by Russia's JSC Bank VTB
('BBB'/Stable).

The upgrades of state-owned Oschadbank and Ukreximbank reflect the
improved ability of the government to provide support in case of
need, as reflected in the upgrade of Ukraine's Long-term IDRs,
while the propensity to support would likely be significant, based
on the banks' state ownership and their policy roles.
Ukreximbank's better (relative to Oschadbank) standalone credit
profile is reflected in its higher Individual rating.

Fitch will in the near future review further the Individual
ratings of the aforementioned banks, as well as the ratings of
domestically-owned banks not covered in this announcement (PJSC CB
Privatbank ('B-'/Stable, Bank Khreschatyk ('B-'/Negative), Bank
Pivdennyi ('B-'/Negative) and Industrialbank ('CCC'/Negative)).

JSC UkrSibbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Ukrsotsbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Bank Forum:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

ProCredit Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'D/E'

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

Pravex Bank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC VTB Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC State Savings Bank of Ukraine (Oschadbank):

  -- Long-term foreign and local currency IDRs: upgraded to 'B'
     from 'B-'; Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'E'

  -- National Long-term rating: upgraded to 'AA-(ukr)' from
     'A+(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Subordinated debt: upgraded to 'CCC' from 'CC'; Recovery
     Rating 'RR6'

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'D'

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


PRAVEX BANK: Fitch Upgrades Long-Term Foreign Currency IDR to B
---------------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default ratings of
eight Ukrainian banks to 'B' from 'B-'.  The Outlooks on the Long-
term IDRs are Stable.  This follows the upgrade of Ukraine's Long-
term foreign and local currency IDRs to 'B' from 'B-' with a
Stable Outlook.

The upgrades of UkrSibbank, Ukrsotsbank, Forum, ProCredit Ukraine,
Pravex and VTB Ukraine follow the upgrade of Ukraine's Country
Ceiling to 'B' from 'B-'.  The Country Ceiling of Ukraine, which
reflects transfer and convertibility risks, constrains the banks'
Long-term foreign currency IDRs as it limits the extent to which
support from the majority foreign shareholders of these banks can
be factored into the ratings.  Their 'B+' Long-term local currency
IDRs also take into account Ukrainian country risks.

UkrSibbank is 81%-owned by France's BNP Paribas ('AA-'/Stable);
Ukrsotsbank is 95%-owned by Italy-based UniCredit S.p.A.
('A'/Negative) through its Vienna subsidiary UniCredit Bank
Austria AG ('A'/Stable); Forum is majority-owned (89%) by
Germany's Commerzbank AG ('A+'/Stable); ProCredit Ukraine is 60%-
owned by Germany's ProCredit Holding AG ('BBB-'/Stable); Pravex is
100%-owned by Italy's Intesa Sanpaolo S.p.A. ('AA-'/Stable) and
VTB Ukraine is more than 99%-owned by Russia's JSC Bank VTB
('BBB'/Stable).

The upgrades of state-owned Oschadbank and Ukreximbank reflect the
improved ability of the government to provide support in case of
need, as reflected in the upgrade of Ukraine's Long-term IDRs,
while the propensity to support would likely be significant, based
on the banks' state ownership and their policy roles.
Ukreximbank's better (relative to Oschadbank) standalone credit
profile is reflected in its higher Individual rating.

Fitch will in the near future review further the Individual
ratings of the aforementioned banks, as well as the ratings of
domestically-owned banks not covered in this announcement (PJSC CB
Privatbank ('B-'/Stable, Bank Khreschatyk ('B-'/Negative), Bank
Pivdennyi ('B-'/Negative) and Industrialbank ('CCC'/Negative)).

JSC UkrSibbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Ukrsotsbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Bank Forum:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

ProCredit Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'D/E'

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

Pravex Bank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC VTB Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC State Savings Bank of Ukraine (Oschadbank):

  -- Long-term foreign and local currency IDRs: upgraded to 'B'
     from 'B-'; Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'E'

  -- National Long-term rating: upgraded to 'AA-(ukr)' from
     'A+(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Subordinated debt: upgraded to 'CCC' from 'CC'; Recovery
     Rating 'RR6'

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'D'

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


PROCREDIT BANK: Fitch Upgrades Local Currency IDR to 'B'
--------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default ratings of
eight Ukrainian banks to 'B' from 'B-'.  The Outlooks on the Long-
term IDRs are Stable.  This follows the upgrade of Ukraine's Long-
term foreign and local currency IDRs to 'B' from 'B-' with a
Stable Outlook.

The upgrades of UkrSibbank, Ukrsotsbank, Forum, ProCredit Ukraine,
Pravex and VTB Ukraine follow the upgrade of Ukraine's Country
Ceiling to 'B' from 'B-'.  The Country Ceiling of Ukraine, which
reflects transfer and convertibility risks, constrains the banks'
Long-term foreign currency IDRs as it limits the extent to which
support from the majority foreign shareholders of these banks can
be factored into the ratings.  Their 'B+' Long-term local currency
IDRs also take into account Ukrainian country risks.

UkrSibbank is 81%-owned by France's BNP Paribas ('AA-'/Stable);
Ukrsotsbank is 95%-owned by Italy-based UniCredit S.p.A.
('A'/Negative) through its Vienna subsidiary UniCredit Bank
Austria AG ('A'/Stable); Forum is majority-owned (89%) by
Germany's Commerzbank AG ('A+'/Stable); ProCredit Ukraine is 60%-
owned by Germany's ProCredit Holding AG ('BBB-'/Stable); Pravex is
100%-owned by Italy's Intesa Sanpaolo S.p.A. ('AA-'/Stable) and
VTB Ukraine is more than 99%-owned by Russia's JSC Bank VTB
('BBB'/Stable).

The upgrades of state-owned Oschadbank and Ukreximbank reflect the
improved ability of the government to provide support in case of
need, as reflected in the upgrade of Ukraine's Long-term IDRs,
while the propensity to support would likely be significant, based
on the banks' state ownership and their policy roles.
Ukreximbank's better (relative to Oschadbank) standalone credit
profile is reflected in its higher Individual rating.

Fitch will in the near future review further the Individual
ratings of the aforementioned banks, as well as the ratings of
domestically-owned banks not covered in this announcement (PJSC CB
Privatbank ('B-'/Stable, Bank Khreschatyk ('B-'/Negative), Bank
Pivdennyi ('B-'/Negative) and Industrialbank ('CCC'/Negative)).

JSC UkrSibbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Ukrsotsbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Bank Forum:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

ProCredit Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'D/E'

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

Pravex Bank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC VTB Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC State Savings Bank of Ukraine (Oschadbank):

  -- Long-term foreign and local currency IDRs: upgraded to 'B'
     from 'B-'; Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'E'

  -- National Long-term rating: upgraded to 'AA-(ukr)' from
     'A+(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Subordinated debt: upgraded to 'CCC' from 'CC'; Recovery
     Rating 'RR6'

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'D'

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


UKREXIMBANK: Fitch Upgrades Subordinated Debt Rating to 'CCC'
-------------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default ratings of
eight Ukrainian banks to 'B' from 'B-'.  The Outlooks on the Long-
term IDRs are Stable.  This follows the upgrade of Ukraine's Long-
term foreign and local currency IDRs to 'B' from 'B-' with a
Stable Outlook.

The upgrades of UkrSibbank, Ukrsotsbank, Forum, ProCredit Ukraine,
Pravex and VTB Ukraine follow the upgrade of Ukraine's Country
Ceiling to 'B' from 'B-'.  The Country Ceiling of Ukraine, which
reflects transfer and convertibility risks, constrains the banks'
Long-term foreign currency IDRs as it limits the extent to which
support from the majority foreign shareholders of these banks can
be factored into the ratings.  Their 'B+' Long-term local currency
IDRs also take into account Ukrainian country risks.

UkrSibbank is 81%-owned by France's BNP Paribas ('AA-'/Stable);
Ukrsotsbank is 95%-owned by Italy-based UniCredit S.p.A.
('A'/Negative) through its Vienna subsidiary UniCredit Bank
Austria AG ('A'/Stable); Forum is majority-owned (89%) by
Germany's Commerzbank AG ('A+'/Stable); ProCredit Ukraine is 60%-
owned by Germany's ProCredit Holding AG ('BBB-'/Stable); Pravex is
100%-owned by Italy's Intesa Sanpaolo S.p.A. ('AA-'/Stable) and
VTB Ukraine is more than 99%-owned by Russia's JSC Bank VTB
('BBB'/Stable).

The upgrades of state-owned Oschadbank and Ukreximbank reflect the
improved ability of the government to provide support in case of
need, as reflected in the upgrade of Ukraine's Long-term IDRs,
while the propensity to support would likely be significant, based
on the banks' state ownership and their policy roles.
Ukreximbank's better (relative to Oschadbank) standalone credit
profile is reflected in its higher Individual rating.

Fitch will in the near future review further the Individual
ratings of the aforementioned banks, as well as the ratings of
domestically-owned banks not covered in this announcement (PJSC CB
Privatbank ('B-'/Stable, Bank Khreschatyk ('B-'/Negative), Bank
Pivdennyi ('B-'/Negative) and Industrialbank ('CCC'/Negative)).

JSC UkrSibbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Ukrsotsbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Bank Forum:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

ProCredit Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'D/E'

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

Pravex Bank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC VTB Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC State Savings Bank of Ukraine (Oschadbank):

  -- Long-term foreign and local currency IDRs: upgraded to 'B'
     from 'B-'; Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'E'

  -- National Long-term rating: upgraded to 'AA-(ukr)' from
     'A+(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Subordinated debt: upgraded to 'CCC' from 'CC'; Recovery
     Rating 'RR6'

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'D'

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


UKRSOTSBANK: Fitch Affirms Individual Rating at 'E'
---------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default ratings of
eight Ukrainian banks to 'B' from 'B-'.  The Outlooks on the Long-
term IDRs are Stable.  This follows the upgrade of Ukraine's Long-
term foreign and local currency IDRs to 'B' from 'B-' with a
Stable Outlook.

The upgrades of UkrSibbank, Ukrsotsbank, Forum, ProCredit Ukraine,
Pravex and VTB Ukraine follow the upgrade of Ukraine's Country
Ceiling to 'B' from 'B-'.  The Country Ceiling of Ukraine, which
reflects transfer and convertibility risks, constrains the banks'
Long-term foreign currency IDRs as it limits the extent to which
support from the majority foreign shareholders of these banks can
be factored into the ratings.  Their 'B+' Long-term local currency
IDRs also take into account Ukrainian country risks.

UkrSibbank is 81%-owned by France's BNP Paribas ('AA-'/Stable);
Ukrsotsbank is 95%-owned by Italy-based UniCredit S.p.A.
('A'/Negative) through its Vienna subsidiary UniCredit Bank
Austria AG ('A'/Stable); Forum is majority-owned (89%) by
Germany's Commerzbank AG ('A+'/Stable); ProCredit Ukraine is 60%-
owned by Germany's ProCredit Holding AG ('BBB-'/Stable); Pravex is
100%-owned by Italy's Intesa Sanpaolo S.p.A. ('AA-'/Stable) and
VTB Ukraine is more than 99%-owned by Russia's JSC Bank VTB
('BBB'/Stable).

The upgrades of state-owned Oschadbank and Ukreximbank reflect the
improved ability of the government to provide support in case of
need, as reflected in the upgrade of Ukraine's Long-term IDRs,
while the propensity to support would likely be significant, based
on the banks' state ownership and their policy roles.
Ukreximbank's better (relative to Oschadbank) standalone credit
profile is reflected in its higher Individual rating.

Fitch will in the near future review further the Individual
ratings of the aforementioned banks, as well as the ratings of
domestically-owned banks not covered in this announcement (PJSC CB
Privatbank ('B-'/Stable, Bank Khreschatyk ('B-'/Negative), Bank
Pivdennyi ('B-'/Negative) and Industrialbank ('CCC'/Negative)).

JSC UkrSibbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Ukrsotsbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Bank Forum:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

ProCredit Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'D/E'

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

Pravex Bank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC VTB Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC State Savings Bank of Ukraine (Oschadbank):

  -- Long-term foreign and local currency IDRs: upgraded to 'B'
     from 'B-'; Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'E'

  -- National Long-term rating: upgraded to 'AA-(ukr)' from
     'A+(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Subordinated debt: upgraded to 'CCC' from 'CC'; Recovery
     Rating 'RR6'

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'D'

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


UKRSIBBANK: Fitch Upgrades Senior Unsecured Debt Rating to 'B'
--------------------------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default ratings of
eight Ukrainian banks to 'B' from 'B-'.  The Outlooks on the Long-
term IDRs are Stable.  This follows the upgrade of Ukraine's Long-
term foreign and local currency IDRs to 'B' from 'B-' with a
Stable Outlook.

The upgrades of UkrSibbank, Ukrsotsbank, Forum, ProCredit Ukraine,
Pravex and VTB Ukraine follow the upgrade of Ukraine's Country
Ceiling to 'B' from 'B-'.  The Country Ceiling of Ukraine, which
reflects transfer and convertibility risks, constrains the banks'
Long-term foreign currency IDRs as it limits the extent to which
support from the majority foreign shareholders of these banks can
be factored into the ratings.  Their 'B+' Long-term local currency
IDRs also take into account Ukrainian country risks.

UkrSibbank is 81%-owned by France's BNP Paribas ('AA-'/Stable);
Ukrsotsbank is 95%-owned by Italy-based UniCredit S.p.A.
('A'/Negative) through its Vienna subsidiary UniCredit Bank
Austria AG ('A'/Stable); Forum is majority-owned (89%) by
Germany's Commerzbank AG ('A+'/Stable); ProCredit Ukraine is 60%-
owned by Germany's ProCredit Holding AG ('BBB-'/Stable); Pravex is
100%-owned by Italy's Intesa Sanpaolo S.p.A. ('AA-'/Stable) and
VTB Ukraine is more than 99%-owned by Russia's JSC Bank VTB
('BBB'/Stable).

The upgrades of state-owned Oschadbank and Ukreximbank reflect the
improved ability of the government to provide support in case of
need, as reflected in the upgrade of Ukraine's Long-term IDRs,
while the propensity to support would likely be significant, based
on the banks' state ownership and their policy roles.
Ukreximbank's better (relative to Oschadbank) standalone credit
profile is reflected in its higher Individual rating.

Fitch will in the near future review further the Individual
ratings of the aforementioned banks, as well as the ratings of
domestically-owned banks not covered in this announcement (PJSC CB
Privatbank ('B-'/Stable, Bank Khreschatyk ('B-'/Negative), Bank
Pivdennyi ('B-'/Negative) and Industrialbank ('CCC'/Negative)).

JSC UkrSibbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Ukrsotsbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Bank Forum:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

ProCredit Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'D/E'

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

Pravex Bank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC VTB Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC State Savings Bank of Ukraine (Oschadbank):

  -- Long-term foreign and local currency IDRs: upgraded to 'B'
     from 'B-'; Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'E'

  -- National Long-term rating: upgraded to 'AA-(ukr)' from
     'A+(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Subordinated debt: upgraded to 'CCC' from 'CC'; Recovery
     Rating 'RR6'

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'D'

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


VTB BANK: Fitch Affirms Individual Rating at 'E'
-----------------------------------------------
Fitch Ratings has upgraded the Long-term Issuer Default ratings of
eight Ukrainian banks to 'B' from 'B-'.  The Outlooks on the Long-
term IDRs are Stable.  This follows the upgrade of Ukraine's Long-
term foreign and local currency IDRs to 'B' from 'B-' with a
Stable Outlook.

The upgrades of UkrSibbank, Ukrsotsbank, Forum, ProCredit Ukraine,
Pravex and VTB Ukraine follow the upgrade of Ukraine's Country
Ceiling to 'B' from 'B-'.  The Country Ceiling of Ukraine, which
reflects transfer and convertibility risks, constrains the banks'
Long-term foreign currency IDRs as it limits the extent to which
support from the majority foreign shareholders of these banks can
be factored into the ratings.  Their 'B+' Long-term local currency
IDRs also take into account Ukrainian country risks.

UkrSibbank is 81%-owned by France's BNP Paribas ('AA-'/Stable);
Ukrsotsbank is 95%-owned by Italy-based UniCredit S.p.A.
('A'/Negative) through its Vienna subsidiary UniCredit Bank
Austria AG ('A'/Stable); Forum is majority-owned (89%) by
Germany's Commerzbank AG ('A+'/Stable); ProCredit Ukraine is 60%-
owned by Germany's ProCredit Holding AG ('BBB-'/Stable); Pravex is
100%-owned by Italy's Intesa Sanpaolo S.p.A. ('AA-'/Stable) and
VTB Ukraine is more than 99%-owned by Russia's JSC Bank VTB
('BBB'/Stable).

The upgrades of state-owned Oschadbank and Ukreximbank reflect the
improved ability of the government to provide support in case of
need, as reflected in the upgrade of Ukraine's Long-term IDRs,
while the propensity to support would likely be significant, based
on the banks' state ownership and their policy roles.
Ukreximbank's better (relative to Oschadbank) standalone credit
profile is reflected in its higher Individual rating.

Fitch will in the near future review further the Individual
ratings of the aforementioned banks, as well as the ratings of
domestically-owned banks not covered in this announcement (PJSC CB
Privatbank ('B-'/Stable, Bank Khreschatyk ('B-'/Negative), Bank
Pivdennyi ('B-'/Negative) and Industrialbank ('CCC'/Negative)).

JSC UkrSibbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Ukrsotsbank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

Bank Forum:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

ProCredit Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Short-term local currency IDR: affirmed at 'B'

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'D/E'

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

Pravex Bank:

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC VTB Bank (Ukraine):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Long-term local currency IDR: upgraded to 'B+' from 'B';
     Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Individual rating: affirmed at 'E'

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

JSC State Savings Bank of Ukraine (Oschadbank):

  -- Long-term foreign and local currency IDRs: upgraded to 'B'
     from 'B-'; Outlook Stable

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'E'

  -- National Long-term rating: upgraded to 'AA-(ukr)' from
     'A+(ukr)'; Outlook Stable

JSC The State Export-Import Bank of Ukraine (Ukreximbank):

  -- Long-term foreign currency IDR: upgraded to 'B' from 'B-';
     Outlook Stable

  -- Senior unsecured debt: upgraded to 'B' from 'B-'; Recovery
     Rating 'RR4'

  -- Subordinated debt: upgraded to 'CCC' from 'CC'; Recovery
     Rating 'RR6'

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

  -- Support rating: upgraded to '4' from '5'

  -- Support Rating Floor: upgraded to 'B' from 'B-'

  -- Individual rating: affirmed at 'D'

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


* Fitch Upgrades Republic of Ukraine's 'B' Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has upgraded the Republic of Ukraine's sovereign
Long-term foreign and local currency Issuer Default Ratings to 'B'
from 'B-'.  The Outlooks on the Long-term IDRs are Stable.  At the
same time, the agency has affirmed Ukraine's short-term foreign
currency IDR at 'B' and upgraded the Country Ceiling to 'B' from
'B-'.

"The upgrade of Ukraine's sovereign ratings follows the agreement
on a new US$14.9bn IMF loan program which supports confidence in
the policy and financing outlook, reduces the risk of
macroeconomic and financial instability and is positive for the
country's creditworthiness," said David Heslam, Director in
Fitch's Sovereign team.

The IMF announced a loan agreement on 3 July on a 2.5 year Stand-
By Arrangement worth SDR10 billion (about US$14.9 billion, or
10.6% of Fitch's forecast 2010 GDP for Ukraine).  The SBA is
subject to approval by the IMF Board, which is to review the
agreement in late-July.  The new SBA follows a November 2008 SBA
equivalent to US$16.4 billion, of which about US$10.4 billion was
disbursed before Ukraine went off track with the IMF in November
2009 due to policy slippage ahead of the presidential elections.

The IMF agreement improves the sovereign's financing flexibility
and will unlock additional funds from other international
financial institutions, subject to Ukraine meeting certain IMF
structural and operational conditions that have yet to be fully
defined.  The government faces a tough challenge to adjust
policies and tackle the ongoing impact of an economic and
financial crisis that has hit Ukraine particularly hard.  Real GDP
fell 15.1% in 2009, marking the second-worst economic performance
after Latvia of the over 100 sovereigns rated by Fitch.  The
general government deficit widened by over 5pp of GDP last year,
to 8.5%, and could be higher once official IMF-based accounts are
reported.  In addition, the quasi-fiscal deficit of Naftogaz
('CCC'/Negative Outlook) and bank recapitalization costs added
about 5% of GDP to the government's financing needs last year.
General government debt rose to 24.8% of GDP in 2009, from 13.8%
in 2008.  Including guarantees, government liabilities are
estimated at 34.6% of GDP.

The IMF agreement establishes a general government deficit target
of 5.5% of GDP in 2010 and 3.5% in 2011, with the stated aim of
placing government debt on a downward path.  In addition,
Naftogaz's quasi-fiscal deficit is targeted to fall to 1% this
year and zero in 2011.  Policies to meet these targets have yet to
be detailed, but are likely to include measures to improve tax
collection and raise domestic gas tariffs toward cost recovery
levels.  Public finances will benefit from an improvement in the
macroeconomic environment, with Fitch forecasting real GDP growth
of 4.5% in 2010 and 4.7% in 2011, driven by stronger external
demand and an improvement in Ukraine's terms of trade,
particularly for its metals exports.

"A credible and consistent program to reduce the budget deficit
and place the government debt ratio on a downward trend, combined
with reforms to reduce Ukraine's vulnerability to shocks, has the
potential to further improve creditworthiness over time.  However,
a track record of policy consistency has yet to be established in
Ukraine," added Mr. Heslam.

The IMF agreement is also likely to accelerate progress on the
recapitalization of the banking system, which will be needed
before banks again start to support economic growth by expanding
private credit.  A stabilization of the macroeconomic environment
and lower UAH volatility, supported by a build-up of foreign
exchange reserves, which stand at US$26.7 billion, has improved
the backdrop for banks.  However, progress with recapitalization
has been slow.  The Ukrainian Ministry of Finance estimates bank
recapitalization needs at UAH30 billion, or about 3% of 2010 GDP.
Fitch estimates capitalization needs total about US$11 billion
(about 8% of GDP), although this includes foreign and privately-
owned Ukrainian banks, so not all of the additional costs will
fall on the sovereign.


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


ARRAN CORPORATE: S&P Affirms CCC+ Ratings on F1, F2, F3 Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
Arran Corporate Loans No. 1 B.V.'s European synthetic
collateralized debt obligation notes.  Specifically, S&P raised
its ratings on classes B1, B2, B3, C1, C2, D1, D2, E1, E2, and E3.
At the same time, S&P affirmed its ratings on classes A1, A2, A3,
F1, F2, and F3.

Arran's reference portfolio of U.K. corporate loans has reduced
following the amortization of several assets.  The portfolio
reported to us at the end of May 2010 was GBP883 million, compared
with GBP1,390 million in June 2009 and GBP3,500 million at
closing.  At the same time, there has been a reduction in the
outstanding amount of the class A1, A2, and A3 notes.

In S&P's opinion, the transaction now has fewer assets at risk in
the reference portfolio, while the credit enhancement for classes
B to E is unchanged (in monetary terms).  Therefore, S&P believes
that the credit support for these tranches is commensurate with
higher ratings.  As a result, S&P upgraded the notes.

The ratings on classes C1, C2, D1, D2, E1, E2, and E3 could be
upgraded further based on scenario loss rates and the credit
enhancement; however, they are constrained by the "largest
obligor" supplemental stress test as set out in the S&P's
corporate CDO criteria.

Arran is a fully funded synthetic balance sheet collateralized
loan obligation, originally referencing a GBP3.5 billion portfolio
of British pound sterling bank loans and undrawn facilities
granted to U.K. borrowers by The Royal Bank of Scotland PLC or
National Westminster Bank PLC.

                           Ratings List

                          Ratings Raised

                 Arran Corporate Loans No. 1 B.V.
              EUR1.271 Billion, GBP993.641 Million,
          US$2.966 Billion Secured Floating-Rate Notes

                                   Rating
                                   ------
             Class           To                 From
             -----           --                 ----
             B1              AA+                A+
             B2              AA+                A+
             B3              AA+                A+
             C1              A+                 A
             C2              A+                 A
             D1              BBB+              BBB
             D2              BBB+              BBB
             E1              B+                CCC+
             E2              B+                CCC+
             E3              B+                CCC+

                         Ratings Affirmed

                      Class           Rating
                      -----           ------
                      A1              AAA
                      A2              AAA
                      A3              AAA
                      F1              CCC+
                      F2              CCC+
                      F3              CCC+


BRITISH AIRWAYS: Mounts War of Attrition Against Cabin Crew
-----------------------------------------------------------
Louisa Fahy at Bloomberg News reports that British Airways Plc
Chief Executive Officer Willie Walsh may be counting on strike
fatigue among 12,000 cabin crew to enable him to force through
cost cuts and weaken union influence.

Bloomberg relates flight attendants began voting Tuesday on a pay
offer that ignores union grievances over the removal of travel
perks, the firing of strikers and the use of volunteer staff.

According to Bloomberg, Andy Cook, CEO of Marshall-James, which
advises companies on employee relations, said the appetite for
stoppages is probably diminishing.  Mr. Cook, as cited by
Bloomberg, said: "I don't think British Airways will concede on
the points that the union wants them to concede on."

"I don't see the signs that Unite is willing to match the
firepower of BA at the moment," Bloomberg quoted Gregor Gall,
professor of industrial relations at the University of
Hertfordshire in Hatfield, England, as saying.  "British Airways
is mounting a war of attrition and so far it's certainly coming
out as the better-off party."

Under Mr. Walsh's latest proposals, British Airways has agreed to
increase allowances for existing crew once new recruits join their
ranks this fall, drop plans to reduce benefits in order to fund
higher staffing levels on some flights, and lift salaries for two
years starting in 2011, Bloomberg discloses.

"We have changed our offer in line with feedback we have received
from crew," British Airways spokesman Euan Fordyce said in an
e-mail, according to Bloomberg.  "It is fair and reasonable and
provides a genuine opportunity to end this dispute."

Unite has already departed from its previous stance by putting the
deal to members in a two-week postal ballot without recommending
that they reject it, Bloomberg notes.  Bloomberg recalls plans for
a strike vote starting June 29 were halted after British Airways
issued the latest package, with Tony Woodley, Unite's joint
general secretary, saying it would be "suicidal" not to put the
deal to members.

As reported by the Troubled Company Reporter-Europe on June 30,
2010, the Financial Times said that British Airways warned its
cabin crew that they face the risk of fresh legal action or even
dismissal if they go ahead with a strike vote that could see
another round of walkouts at the airline this summer.  The FT
disclosed that in a further sign of pressure, British Airways
revealed on June 28 that 4,500 people have formally registered
interest in being hired as Heathrow cabin crew since it started a
recruitment drive last week for 1,250 new staff on sharply reduced
salaries at its main airport base.

                       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.


SOUTHEND UNITED: Faces Legal Challenge From HMRC Over Tax Debt
--------------------------------------------------------------
Matt Scott at guardian.co.uk reports that Southend United Football
Club is due on court today, July 8, after a petition was filed by
the HM Revenue & Customs to put the club in administration over a
six-figure debt.

It is the second time in three months that the taxman has
challenged Southend through the high court, and on the last
occasion Sainsbury's bailed the club out, the report notes.

According to the report the HMRC is understood to be pressing for
the club to be put into administration due to its repeated failure
to honor tax debts.  It will be for the court registrar to decide
whether to support the application and appoint a receiver to take
over the club from Ron Martin, the report says.

Southend United Football Club is an English football club based at
Roots Hall Stadium, Prittlewell, Southend-on-Sea, Essex, who
currently play in League One of the English Football League.


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


* S&P Takes Various Rating Actions on Nine European CDO Deals
-------------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
nine European synthetic collateralized debt obligation
transactions.

Specifically, S&P took these actions:

* S&P placed on CreditWatch negative its credit ratings on Helium
  Capital Ltd.'s series 75 and 76 notes.

* S&P lowered its credit rating on Jupiter Finance Ltd.'s series
  2001-01 and raised its rating on series 2001-02.

* S&P lowered its rating on Pallas VI Ltd.'s EUR75 million
  floating-rate credit-linked secured notes.

* S&P lowered its ratings on Premier I, Premier II, and Premier
  III S.A.'s CDO bonds.

S&P lowered its rating on Repackaged Offshore Collateralized
Kredit Two Ltd.'s EUR55 million partly-paid zero-coupon secured
installment notes series 3.

Under S&P's rating methodology, S&P has weak-linked the ratings on
the specified tranches of notes  issued by Helium Capital, Jupiter
Finance, and ROCK Two, to the rating on the underlying collateral.
Under S&P's criteria, changes to the rating on the collateral
should be reflected in its rating on the tranche.

Under S&P's rating methodology, S&P has weak-linked the rating on
the specified tranche of notes issued by Pallas VI to the rating
on the swap counterparty, Deutsche Bank AG.  Under S&P's criteria,
changes to the rating on the swap counterparty should be reflected
in its rating on the tranche.

Under S&P's rating methodology, S&P has weak-linked the ratings on
the notes issued by Premier I, II, and III to the rating on the
guarantor, Societe Generale.  Under S&P's criteria, changes to the
rating on the guarantor should be reflected in its ratings on the
bonds.

Due to an error, there has been a delay in the rating actions on
all of these tranches.  The rating actions should have occurred
when S&P took rating action on either the underlying collateral,
the swap counterparty, or the guarantor.  The rating actions
follow the discovery of the error.

                           Ratings List

                         Ratings Lowered

                       Jupiter Finance Ltd.
  JPY6 Billion Reverse Dual Currency Secured Notes Series 2001-01

                             Rating
                             ------
                     To                  From
                     --                  ----
                     A                   AA-

                          Pallas VI Ltd.
      EUR75 Million Floating-Rate Credit-Linked Secured Notes

                             Rating
                             ------
                     To                  From
                     --                  ----
                     A+                  AA-

                          Premier I S.A.
     EUR49.5 Million 1% Participating Fund-Linked Guaranteed
                         Convertible Bonds

                             Rating
                             ------
                     To                  From
                     --                  ----
                     A+                  AA-

                          Premier II S.A.
     EUR131.5 Million 1% Participating Fund Linked Guaranteed
                         Convertible Bonds

                             Rating
                             ------
                     To                  From
                     --                  ----
                     A+                  AA-

                         Premier III S.A.
  $95 Million 1% Participating Fund-Linked Guaranteed Convertible
                              Bonds

                             Rating
                             ------
                     To                  From
                     --                  ----
                     A+                  AA-

     Repackaged Offshore Collateralised Kredit (Rock) Two Ltd.
  EUR55 Million Partly-Paid Zero-Coupon Secured Installment Notes
                         Series 3 Due 2018

                             Rating
                             ------
                     To                  From
                     --                  ----
                     BBB+                A+

                           Rating Raised

                       Jupiter Finance Ltd.
  JPY6 Billion Reverse Dual Currency Secured Notes Series 2001-02

                             Rating
                             ------
                     To                  From
                     --                  ----
                     AA                  AA-

              Ratings Placed On Creditwatch Negative

                        Helium Capital Ltd.
    EUR25 Million Limited-Recourse Secured Floating-Rate Notes
                             Series 75

                             Rating
                             ------
                     To                  From
                     --                  ----
                     BB+/Watch Neg       BB+

                        Helium Capital Ltd.
    EUR25 Million Limited-Recourse Secured Floating-Rate Notes
                             Series 76

                             Rating
                             ------
                     To                  From
                     --                  ----
                     BB+/Watch Neg       BB+


* CMS Camerons' Robert Hickmott to Join Quinn Emanuel
-----------------------------------------------------
Quinn Emanuel Urquhart & Sullivan LLP has lured a CMS Cameron
McKenna LLP banking and insolvency equity partner for the
litigation-only firm's London office, Bankruptcy Law360 reports.

Robert Hickmott, who has been with U.K.-based Camerons for 21
years, said he would be leaving in November to take over an equity
partner position at Quinn Emanuel.


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

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 * * *