/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/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 ********* =========== F R A N C E =========== 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. ============= G E R M A N Y ============= 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. ============= I C E L A N D ============= 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. ============= I R E L A N D ============= 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. ========= I T A L Y ========= 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 * * *