TCREUR_Public/100805.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, August 5, 2010, Vol. 11, No. 153

                            Headlines



A U S T R I A

HYPO ALPE-ADRIA-BANK: Moody's Cuts Sub. Liabilities Rating to Ba1
HYPO TIROL: Moody's Downgrades Bank Strength Rating to 'D'
INTERMARKET BANK: Moody's Cuts Bank Strength Rating to 'D+'
VORARLBERGER LANDES: Moody's Cuts Bank Strength Rating to 'D+'


B U L G A R I A

PROCREDIT BANK: Fitch Affirms Issuer Default Ratings at 'BB+'


D E N M A R K

CAPINORDIC BANK: Danish Authority May Seek Charges v. Ex-Chiefs


F R A N C E

LAFARGE CEMENT: Moody's Reviews Ratings for Possible Downgrade
NATIXIS SA: In Talks With BPCE to Merge Insurance Units


G E R M A N Y

ARCANDOR AG: Berggruen May Request Extension of Karstadt Talks
BOWE SYSTEC: Axentum Capital in Sale Talks With Administrator
FRESENIUS SE: Fitch Gives Positive Outlook; Affirms 'BB' Rating


H U N G A R Y

* HUNGARY: Company Liquidations Up 29% in July, Opten Says


I R E L A N D

ALLIED IRISH: Santander Favorite Bidder to Buy Zachodni Stake
EBS BUILDING: JC Flowers to Take 49% Stake

* IRELAND: Corporate Failures Up; Construction Sector Worst Hit
* IRELAND: EU Commission Okays Transfer of Loans to NAMA


K A Z A K H S T A N

TRISTAN OIL: Fitch Downgrades Issuer Default Rating to 'RD'


R U S S I A

BANK ROSSIYA: Moody's Affirms 'E+' Bank Financial Strength Rating

* NOGINSK MUNICIPAL: Fitch Lifts Foreign & Local Currency Ratings


S L O V E N I A

PREVENT GLOBAL: Management Files Request for Receivership

* SLOVENIA: Finance Seeks More Efficient Bankruptcy Proceedings


U K R A I N E

INTERPIPE LTD: Seeks Restructuring of US$200 Million Eurobonds


U N I T E D   K I N G D O M

CONNAUGHT PLC: Lenders Sell Loans Following Debt Breach Warning
LLOYDS BANKING: Denies Rumors of Replacing CEO Eric Daniels
LLOYDS BANKING: To Retain 60% Stake in St. James's Place
NORTHERN ROCK: "Good Bank" Posts Losses While "Bad Bank" Profits
NOVOTEL EDINBURGH: Bought Out of Administration

PORTSMOUTH FOOTBALL: To Face Liquidation if HMRC Wins CVA Appeal
ROYAL BANK: Gets GBP5.6 Million Fine
ROYAL BANK: May Keep 20% Stake in WorldPay Following Sale
SOUTHERN PACIFIC: S&P Raises Ratings on Various Classes of Notes
ST URSULA'S: In Administration; Faces Closure

TAYLOR WIMPEY: Earns GBP19.6 Million in Six Months Ended July 4


X X X X X X X X

* EUROPE: Banks Take Control of Private-Equity-Backed Companies

* Upcoming Meetings, Conferences and Seminars




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A U S T R I A
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HYPO ALPE-ADRIA-BANK: Moody's Cuts Sub. Liabilities Rating to Ba1
-----------------------------------------------------------------
Moody's Investors Service has downgraded to Baa3 from Baa2 the
long-term debt and deposit ratings of Hypo Alpe-Adria-Bank
International AG and its ratings for subordinated liabilities to
Ba1 from Baa3.  Concurrently, the bank's short-term rating was
downgraded to P-3.  Hypo Alpe Adria's E Bank financial strength
rating, mapping to a stand-alone Baseline Credit Assessment of
Caa2, was affirmed with a stable outlook.  The multi-notch uplift
for the bank's deposit and debt ratings reflects Moody's
assessment of a very high probability of ongoing systemic support.
The outlook on the debt and deposit ratings is negative.

At the same time, Moody's confirmed the Ca ratings for the non-
cumulative preferred securities (Tier 1 instruments) issued by
Hypo Alpe Adria (Jersey) Ltd and Hypo Alpe Adria (Jersey) II Ltd
with a stable outlook.  The ratings of Hypo Alpe-Adria's
supplementary capital bonds (Erg„nzungskapital) were affirmed at C
with their stable outlook.

The rating actions conclude the review for possible further
downgrade of the short- and long-term debt ratings that Moody's
initiated on 4 December 2009.

The Aa3/A1/Prime-1 ratings for debt backed by the Austrian federal
state of Carinthia and the Aaa rating for debt backed by the
Republic of Austria are not affected by the rating action.

              Baa3/P-3 Ratings Benefit Strongly From
               Expected Medium-Term Systemic Support

Moody's decision to downgrade Hypo Alpe Adria's long-term debt
ratings by only one notch follows the recent completion of another
EUR450 million capital injection by the Republic of Austria and
EUR150 million by the State of Carinthia, as announced in December
2009.  In Moody's view, the ongoing dialogue with the European
Commission about the bank's restructuring plan has reduced the
risk of a transformative event such as the break-up of the group.
The rating agency recognizes that more than half of Hypo Alpe-
Adria's outstanding debt is guaranteed by the State of Carinthia
(ca. EUR19.4 billion) or by its sole owner, the Republic of
Austria (EUR1.35 billion).

According to Moody's, Hypo Alpe Adria's ability to retain its Baa3
long-term deposit rating for the foreseeable future depends on
these factors:

  i) Moody's expectation of a continued commitment by the Republic
     of Austria to support the bank given its important role in
     the Austrian federal state of Carinthia and the systemic
     relevance of its subsidiaries in some neighboring countries
     in south-eastern Europe.

ii) The approval of the bank's suggested restructuring plan by
     the European Commission.

Moody's decision to apply a negative outlook to the senior
unsecured debt and deposit ratings reflects its view of a lower
probability of future systemic support over time because (i) Hypo
Alpe Adria's systemic importance will inevitably decrease as major
parts of the bank are divested or wound down over time, and
(ii) the "grandfathering" or sovereign guarantee for the bank's
debt will reduce over time in light of the largely staggered
nature of the maturity profile of this debt until 2017.

      BFSR Constrained by Weak Asset Quality, Capitalization,
                      and Impaired Franchise

The E BFSR reflects Moody's view that, the recent capital
injections notwithstanding, Hypo Alpe Adria is likely to continue
to face substantial challenges in its efforts to rebuild some of
its previous financial strength.  Moreover, the rating agency
believes that the bank has yet to prove that its franchise in
Austria and abroad can be restored.  Accordingly, Moody's stated
that the BFSR currently continues to remain constrained by several
factors, especially

  i) the severe asset quality problems, with non-performing loans
     accounting for more than 20% of total loans and a relatively
     weak coverage ratio despite some offsetting impact from
     collateralization;

ii) the poor outlook on Hypo Alpe-Adria's short- and medium-term
     profitability and thus internal capital-generation capacity;

iii) the bank's limited capital buffer to absorb future credit
     losses which may require further capital measures; and

iv) continued concerns about the long-term viability of Hypo Alpe
     Adria's diversified commercial franchise, which suffers from
     limited opportunities for new business against the background
     of its far-reaching restructuring and downsizing programme.

Moody's expects that the bank will focus on de-risking its current
business profile, which may have positive rating implications in
the long run.  However, targeted restructuring measures remain
dependent on the approval of the European Commission, which are
not expected to be granted before year-end 2010.

The possible impact on the ratings of Hypo Alpe Adria's covered
bonds will be discussed in a separate press release.

    Ratings of Hybrid Instruments Now All With Stable Outlook

The confirmation of the Ca ratings and stable outlook of the non-
cumulative preferred securities (Tier 1 instruments) issued by
HGAA's subsidiaries, Hypo Alpe Adria (Jersey) Ltd and Hypo Alpe
Adria (Jersey) II Ltd, is based on Moody's view that the
likelihood of a break-up of the group has decreased following the
recent completion of the capital injection by the Republic of
Austria and the State of Carinthia and the ongoing dialogue with
the European Commission about the bank's restructuring plans.  The
ratings do factor in further coupon losses over the next years.
The Ca ratings take into account that the perpetual instruments
could have some prospect of recovery in the long term.

At the same time, the ratings of Hypo Alpe-Adria's supplementary
capital bonds (Erg„nzungskapital, ISINs: AT0000345202,
XS0178449467) were affirmed at C with their stable outlook.  The C
ratings reflect Moody's expectation of coupon losses over the next
years and the potential for principal losses at maturity in 2014
and 2015, respectively.  Moody's believes that the recovery
potential of those instruments is very limited.

Moody's previous rating action on Hypo Alpe-Adria was implemented
on April 15, 2010, when Moody's downgraded the ratings of Hypo
Alpe-Adria for senior debt backed by the Austrian federal state of
Carinthia to Aa3 from Aa2 and the guaranteed subordinated debt to
A1 from Aa3.  At the time, Moody's gave the bank's guaranteed
ratings a "developing" outlook and maintained the review for
possible further downgrade on the short- and long-term debt
ratings of Hypo Alpe-Adria.

Based in Klagenfurt, Austria, Hypo Alpe-Adria reported
consolidated assets of EUR41.1 billion at the end of 2009 and an
after-tax loss of EUR 1.6 billion.


HYPO TIROL: Moody's Downgrades Bank Strength Rating to 'D'
----------------------------------------------------------
Moody's Investors Service has downgraded Hypo Tirol Bank AG's
senior unsecured debt and deposit ratings to A2 from Aa1 as well
as its subordinate debt rating to A3 from Aa2.  At the same time,
Moody's downgraded the Bank Financial Strength Rating to D from C.
Short-term ratings were affirmed at Prime-1.  The outlook on all
ratings is stable.  This rating action concludes the review
initiated on November 19, 2009.

The ratings for obligations that qualify for the grandfathering of
"Ausfallburgschaft" (a guarantee obligation from the Austrian
Federal State of Tirol) remained unaffected by the rating action.

          BFSR Downgraded Due to Asset Quality Pressure
                      and Low Profitability

Moody's downgraded the BFSR to D, mapping to a Baseline Credit
Assessment (BCA) of Ba2, in light of stress tests on Hypo Tirol's
earnings, assets and capital.  The outcome of the tests reflect
the rating agency's view that the bank is only weakly capitalised
in the context of its risk profile.

At year-end 2009, the level of problem loans was above 7% of gross
loans (FYE2008: 5.1%).  Aggravated by losses associated with the
M-Solar client fraud case in 2009 (write-off EUR22 million),
bottom-line profitability was severely eroded, leaving the bank
with net profit of EUR4 million at year-end 2009 (from
EUR11 million in 2008 and EUR25 million in 2007).  The limited
loss absorption capacity from recurring earnings in case of stress
is partly mitigated by the bank's capital, with a Tier 1 ratio of
7.04% following a capital increase in late 2009.

As a result, profitability and asset quality metrics position Hypo
Tirol's BFSR in the D range, and Moody's expects the bank to only
gradually restore these metrics to levels more commensurate with a
higher BFSR.

The rating agency recognizes Hypo Tirol's focused efforts to
address weaknesses in its risk management and control structures
following a change in management.  Downward rating pressure could
be triggered by larger-than-anticipated levels of problem loans
and a failure to improve risk-weighted profitability over the
medium term.

          Long-Term Debt and Deposit Ratings Reflect A
                 Very High Probability of Support

Hypo Tirol's A2 long-term debt and deposit ratings continue to
benefit from Moody's assessment of a very high probability of
regional local government and systemic support.  Moody's notes
that the dependence of Hypo Tirol's strong investment-grade
ratings on outside support has increased, which is reflected by
the increased (six-notch) uplift from the Ba2 BCA.  Should the
BFSR weaken to D-, the A2 debt and deposit rating could come under
pressure, which Moody's do not envisage as likely at present, as
indicated by the stable outlook.

Moody's last rating action on Hypo Tirol was on 19 November 2009,
when the bank's BFSR and debt and deposit rating were put under
review for possible downgrade.

Headquartered in Innsbruck, Austria, Hypo Tirol Bank AG had total
assets of EUR12.2 billion at year-end 2009.  The bank reported a
net income of EUR4 million for 2009 and had Tier-1 ratio of 7.04%.


INTERMARKET BANK: Moody's Cuts Bank Strength Rating to 'D+'
-----------------------------------------------------------
Moody's Investors Service has downgraded the long-term deposit
ratings of Intermarket Bank AG by three notches to Baa2 from A2,
and its bank financial strength rating to D+ from C.  The BFSR now
maps to a baseline credit assessment of Baa3.  Concurrently,
Intermarket's short-term ratings have been downgraded to Prime-2
from Prime-1.  The outlook on all ratings is now stable.

The rating action concludes Moody's review for possible downgrade
of the bank's long-term deposit ratings, the BFSR and the short-
term ratings initiated on 19 November 2009.

        Lower BFSR Reflects Event Risk and Funding Profile

The rating action was taken in the context of Moody's
recalibration exercise on Austrian banks, which included a stress-
testing of banks' profits and assets.  Intermarket's risk profile
shows concentrations against Austrian and German corporates and
certain industries, exposing the bank to event risk.

Intermarket's refinancing needs are asset-driven and highly
dependent on available interbank funding, which makes the bank
susceptible to funding and funding concentration risk.  These
risks are mitigated by the short average maturities of
Intermarket's factoring portfolio (an average of 30 days).
Moody's positively notes, that Intermarket was able to access
interbank funding during the recent turbulent market conditions.

The results of Moody's stress scenarios and the funding profile of
Intermarket's business model reflect the rating agency's view that
Intermarket's risk profile is commensurate with a BFSR in the D+
range.

However, the rating action also takes into consideration
Intermarket's leading position in the price-sensitive factoring
market in Austria and its sound capitalization.  It also
acknowledges this market's small size and the risks in
Intermarket's Central and Eastern Europe operations.

Intermarket is majority-owned by Poland's BRE Bank S.A.
(Baa1/Prime-2/D), while Erste Group Bank AG (Aa3/Prime-1/C-),
together with some of the associated savings banks in Austria,
represent Intermarket's second-largest shareholder group.  The
Baa2 deposit rating reflects Moody's view that Intermarket will
continue to benefit from the support of its owners, especially
with respect to funding.  Moody's assumptions lead to a one-notch
uplift for Intermarket's Baa3 BCA.

             Rating History and Moody's Methodologies

The previous rating action on Intermarket was implemented on
November 19, 2009, when Moody's placed on review for possible
downgrade Intermarket's long-term deposit ratings, BFSR and short-
term ratings.

Intermarket is based in Vienna, Austria.  Burdened by
extraordinary risk provisions at year-end 2009, Intermarket
reported a net income of EUR0.2 million (FY2008: EUR2.8 million)
and total assets of EUR231 million (FY2008: EUR255 million).


VORARLBERGER LANDES: Moody's Cuts Bank Strength Rating to 'D+'
--------------------------------------------------------------
Moody's Investors Service has downgraded the senior unsecured debt
and deposit ratings of Vorarlberger Landes- und Hypothekenbank AG
to A1 from Aa1 as well as its subordinate debt rating to A2 from
Aa2.  At the same time, Moody's downgraded VLH's Bank Financial
Strength Rating to D+ from C.  Short-term ratings were affirmed at
Prime-1.  VLH's hybrid security was downgraded to Ba3 from Baa3.
The outlook on all ratings is stable.  This rating action
concludes the review initiated on 19 November 2009.

The ratings for obligations that qualify for the grandfathering of
"Ausfallburgschaft" (deficiency guarantee from the Austrian
Federal State of Vorarlberg) remained unaffected by the rating
action.

       BFSR Downgrade Reflects Weaker Financial Performance

Moody's downgraded the BFSR to D+, mapping to a Baseline Credit
Assessment of Baa3, in light of stress tests on VLH's earnings,
assets and capital.  The outcome of the tests reflect the rating
agency's view that the bank's performance is more commensurate
with a BFSR in the D+ range, which is also the outcome of VLH's
bank financial strength scorecard.

Moody's recognizes that VLH has adequate capital levels, with a
Tier 1 ratio of 8.15% at year-end 2009 which, however, leaves only
limited room to buffer credit losses.  The bank's problem loan
ratio stood at 3.64% of gross loans at year-end 2009.  The level
of problem loans -- albeit slightly improved compared to 2008 --
reflects the seasoning of the bank's loan portfolios, particularly
in its commercial real estate segment, following years of strong
loan growth.  The rating agency recognizes that VLH's leading
regional franchise provides a stable and diversified earnings
profile.  At the same time, Moody's analysis suggests that
elevated risk charges reflected by prudent provisioning may
continue to constrain the bank's performance, and its capital
generation capacity will therefore be limited.

           Long-Term Debt and Deposit Ratings Reflect a
                  Very High Probability of Support

VLH's A1 long-term debt and deposit ratings continue to benefit
from Moody's assessment of a very high probability of regional
local government and systemic support which is reflected by the
five-notch uplift from the Baa3 BCA.  Should the BFSR weaken to D,
the A1 debt and deposit rating could come under pressure, which
Moody's does not envisage as likely at present, as indicated by
the stable outlook.

Moody's last rating action on VLH was on 19 November 2009, when
the bank's BFSR and debt and deposit rating were put under review
for possible downgrade.

Headquartered in Bregenz, Austria, Vorarlberger Landes- und
Hypothekenbank Aktiengesellschaft had total assets of
EUR13.4 billion at year-end 2009.  The bank reported a net income
of EUR66 million for 2009 and had a Tier-1 ratio of 8.15%.


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B U L G A R I A
===============


PROCREDIT BANK: Fitch Affirms Issuer Default Ratings at 'BB+'
-------------------------------------------------------------
Fitch Ratings has affirmed ProCredit Bank (Bulgaria)'s Long-term
foreign currency and local currency Issuer Default Ratings at
'BB+'.  The agency also affirmed PCB's Short-term foreign and
local currency IDRs at 'B', Individual Rating at 'D' and Support
Rating at '3'.  The Outlooks on the Long-term IDRs are Stable.

The IDRs and Support Rating reflect Fitch's view of the potential
support that would be forthcoming from the bank's 80%-owner,
ProCredit Holding AG (PCH, rated 'BBB-'/Stable), in case of need.
PCH's IDRs and Support Rating in turn reflect Fitch's view of the
high potential support available from its owners, and in
particular from a group of international financial institutions
which are key voting shareholders.  A change in PCH's ability
and/or willingness to support PCB would affect the latter's IDRs,
Outlook and Support Rating.

PCB's Individual Rating reflects pressure on financial performance
from high loan impairment charges, which accounted for 76% of pre-
impairment operating profit in Q110.  However, despite pressures
on revenues, operating profit grew 40% on a pre-impairment basis
in 2009, due to a fall in the bank's costs of funds and its cost
optimization measures.  The bank's net interest margin tightened
in H110 and 2009, under pressure from lower lending volumes and
lower asset spreads although Fitch expects it will be supported in
2010 by a decline in the costs of funding and a stabilization in
the bank's loan book, which consists primarily of loans to small
and medium-sized businesses.

PCB's Individual Rating also reflects heightened credit risk in a
challenging operating environment.  However, asset quality ratios
remain better than the banking sector average: loans past due 90
days rose to 1.8% of gross loans at end-Q110 (compared with 7.8%
for the banking sector) -- a trend which is confirmed as at end-
H110.  Nevertheless, this may partly reflect the bank's increasing
use of restructured loans (3.3% of gross loans at end-2009), the
performance of which remains to be tested.  Coverage levels,
however, remain comfortably above 100%.

Despite a limited franchise, the bank has a stable base of
primarily retail customer deposits.  However, PCB reports a high
loans/customer deposits ratio (133% at end-2009), as the bank
continues to use IFI senior debt funding.  PCB benefits from
liquidity support from its parent, PCH, if needed.  The bank
targets a minimum tier 1 capital ratio of 12%, and remains
dependent on regular capital injections from its parent, which
have been forthcoming to date.

At end-2009, PCB has a small market share of 1.5% of total bank
sector assets in Bulgaria.  PCB is a member of the PCH Group of 21
banks , which were set up as development-oriented banks,
specializing in small business lending and retail banking in
emerging countries (end-2009: total assets of EUR4.9bn).


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D E N M A R K
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CAPINORDIC BANK: Danish Authority May Seek Charges v. Ex-Chiefs
---------------------------------------------------------------
Gelu Sulugiuc at Bloomberg News reports that the Financial
Stability Company said Danish authorities may seek charges against
the former leadership of Capinordic Bank A/S, which is currently
investigated by lawyers hired by the state agency.

Bloomberg recalls Financial Stability took over the assets of
Capinordic Bank on Feb. 12 after financial authorities filed for
bankruptcy.

As reported by the Troubled Company Reporter-Europe on March 29,
2010, Bloomberg News, citing Copenhagen-based Borsen newspaper,
said that the bankruptcy of Capinordic Bank would cost the deposit
guarantee fund DKK800 million (US$144 million).  The deposit
guarantee fund is funded by Danish banks, Bloomberg noted.

Capinordic Bank -- http://www.capinordicbank.dk/-- provides
investment brokerage  services.  As of February 23, 2006,
Capinordic Bank is a subsidiary of Capinordic A/S.


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F R A N C E
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LAFARGE CEMENT: Moody's Reviews Ratings for Possible Downgrade
--------------------------------------------------------------
Moody's Investors Service has put Lafarge's Baa3 rating on review
for possible downgrade.

The rating action is prompted by Moody's expectation that Lafarge
will find it challenging to achieve leverage ratios in the next
few quarters that would be in line with triggers set by Moody's
for the company to keep an investment grade rating.  Despite
meaningful deleveraging measures since 2008, such as a rights
issue, reduction of Capex and efficient working capital
management, which have been offset to some extent by the decision
to increase the dividend payment in 2010, Moody's notes that there
has been limited progress in the company's financial metrics.

The review will focus on:

* The potential glide path towards stronger credit metrics and the
  extent of time required to reach Moody's existing trigger levels

* Further assessment of the possible developments of Lafarge's
  building materials markets

In the first six months of 2010 Lafarge's reported results
weakened relative the same period in 2009, primarily driven by low
volumes in Europe, which was affected by adverse weather
conditions, but also by weak overall construction markets in this
region.  Per last twelve months in June 2010 Lafarge's RCF/net
debt ratio was 10.1%, slightly below the 2009 year end figure of
11.4%.  Moody's notes that the debt number has been strongly
influenced by the weak Euro, which, according to the company,
translated into an additional EUR 1 billion of debt.  At the same
time cash flow and profit and loss metrics have been positively
affected by the changes in the FX rate, hence offsetting to some
extent in Moody's opinion the higher debt position when
calculating leverage ratios.

Even though a pickup in the company's business is expected in the
second half of 2010 as the business has historically displayed
some seasonality during the winter months, Moody's is concerned
that Lafarge's overall capital structure may not improve as
quickly as expected.  Moody's acknowledges that the company has
indicated that it will limit its capex in 2011 to EUR1 billion,
and has identified potential for some assets sales.  But the
persistent uncertainties for public construction markets in 2011
and the chance of limited -- if at all -- pickup in commercial and
residential construction in 2011, may not be conducive to Lafarge
being able to generate a sufficient amount of free cash flow to
materially reduce its debt level, and reach the current guidance
set for 2010 and 2011 to maintain a Baa3 rating (ie a RCF/net debt
ratio close to 20% for the latter year with 15 % for 2010 and a
debt to EBITDA below 3.5X; per last twelve months per 06/2010:
10.1% and 4.8x respectively).

Lafarge's short term liquidity profile is considered good for the
next 12 months, from the beginning of July 2010, based primarily
on the group's high and stable balances of cash and marketable
securities (of EUR2.7 billion), as well as expected funds from
operations.  The major external source of liquidity likely to be
available -- even in a stress scenario -- is the EUR1.75 billion
syndicated long-term credit line, which is unused.  Given the
absence of a repeating material adverse change (MAC) clause and
specific financial covenants, this facility is regarded as
providing a high quality of liquidity.  Additionally, Lafarge has
approximately EUR1.7 billion in unused bilateral and committed
credit lines, which, in Moody's opinion, have a lower quality
given the bilateral character.  However, Moody's takes comfort
from the long average maturity of these lines (around 3.1 years).
These cash sources are more than sufficient to cover committed
cash outflows, such as capex, working capital changes or
dividends.

On Review for Possible Downgrade:


Issuer: Lafarge Cement UK plc

  -- Senior Unsecured Regular Bond/Debenture, Placed on Review for
     Possible Downgrade, currently Baa3

Issuer: Lafarge North America, Inc.

  -- Senior Unsecured Medium-Term Note Program, Placed on Review
     for Possible Downgrade, currently Baa3

  -- Senior Unsecured Regular Bond/Debenture, Placed on Review for
     Possible Downgrade, currently Baa3

Issuer: Lafarge SA

  -- Multiple Seniority Medium-Term Note Program, Placed on Review
     for Possible Downgrade, currently Ba1, Baa3

  -- Senior Unsecured Bank Credit Facility, Placed on Review for
     Possible Downgrade, currently Baa3

  -- Senior Unsecured Regular Bond/Debenture, Placed on Review for
     Possible Downgrade, currently Baa3

Issuer: Sugar Creek (City of) MO

  -- Senior Unsecured Revenue Bonds, Placed on Review for Possible
     Downgrade, currently Baa3

Outlook Actions:

Issuer: Lafarge Cement UK plc

  -- Outlook, Changed To Rating Under Review From Negative

Issuer: Lafarge North America, Inc.

  -- Outlook, Changed To Rating Under Review From Negative

Issuer: Lafarge SA

  -- Outlook, Changed To Rating Under Review From Negative

Moody's last rating action on Lafarge on January 16, 2009, was to
downgrade the company's rating to Baa3 with a negative outlook.

Headquartered in Paris, France, Lafarge S.A. is one of the leading
building materials suppliers globally, and one of the three
largest cement producers worldwide.  Lafarge operates in over 78
countries on five continents and generated sales of
EUR15.9 billion in 2009.


NATIXIS SA: In Talks With BPCE to Merge Insurance Units
-------------------------------------------------------
David Whitehouse at Bloomberg News, citing French daily La
Tribune, reports that BPCE SA and Natixis SA are in discussions
about merging their property and casualty insurance units to cut
costs.

According to Bloomberg, the newspaper said the companies will make
a final decision by the end of the year.

                         About Natixis SA

Natixis SA -- http://www.natixis.com/-- is a France-based bank
offering various services and engaged in different activities.
Its main activities comprise corporate and investment banking,
asset management, receivables management, private equity and
private banking, retail banking and other services.  The Bank is
active in a number of countries in Europe, the Americas, Africa,
Asia and Oceania.  As of December 31, 2008, Natixis SA had a
number of subsidiaries, including Ixis Corporate & Investment
Bank, Ixis Asset Management Group, Coface and Natixis Asset
Management, among others.

                           *     *     *

Natixis SA continues to carry a 'D' bank financial strength rating
from Moody's Investors Service.  Its non-cumulative Tier I
instruments carries a 'B2' rating.  All deposit and debt ratings
have a stable outlook.  The ratings were affirmed in August 2009.

As reported by the Troubled Company Reporter-Europe Feb. 9, 2010,
Fitch Ratings affirmed the rating on Natixis's hybrid capital
instruments affirmed at 'BB'.  The rating was removed by Fitch
from Rating Watch Negative.


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


ARCANDOR AG: Berggruen May Request Extension of Karstadt Talks
--------------------------------------------------------------
Nicholas Berggruen will likely request that Karstadt's
administrator extend a process to approve the retailer's
insolvency plan ahead of an Aug. 10 deadline, William Launder at
Dow Jones Newswires reports, citing two people familiar with the
matter.

According to Dow Jones, Mr. Berggruen, who signed a deal to
acquire German retailer Karstadt in June, wants more time to work
out formal details in negotiations with Karstadt's creditors,
including Valovis Bank and the Highstreet real-estate consortium
led by Goldman Sachs Group Inc.  Mr. Berggruen's deal to acquire
Karstadt was conditional on reaching an agreement with the
department store chain's creditors on issues including lower rents
and lease agreements, Dow Jones notes.

Dow Jones relates a spokesman for insolvency administrator Klaus
Hubert Goerg said an extension to the deal negotiations was
possible before the end of August 10.

                         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.


BOWE SYSTEC: Axentum Capital in Sale Talks With Administrator
-------------------------------------------------------------
The Swiss investment company Axentum Capital is in exclusive talks
with the preliminary insolvency administrator of BOWE SYSTEC AG,
Werner Schneider, over an acquisition of the insolvent company's
German, European and Japanese activities.  The buyer was selected
from a group of around a dozen interested parties.  This was due
in particular to the fact that its business concept ensures a
sustainable future for the company.

"Over the last few days we have been able to reach agreement with
Axentum on the essential points.  We will now finalize the
necessary detailed contracts," explained auditor and insolvency
administrator Werner Schneider.  "We will take every care in doing
so, without excessive time pressure, and we expect to conclude the
talks by the end of August."  This means that the originally
planned deadline for handing over the company is being postponed
by four weeks.

Mr. Schneider brought together the German, European and Japanese
activities as well as the company Lasermax Roll Systems in order
to form BOWE SYSTEC GmbH.  The sale is intended to ensure that
these activities will continue.  This applies in particular to
maintaining production at the company headquarters in Augsburg.
Independently of this sale, the preliminary insolvency
administrator Mr. Schneider is looking for a solution for the
American subsidiaries.  These still currently have a separate
financing concept with American banks and are not affected by the
insolvency.

It is likely to take another four weeks to iron out the remaining
details of the sale and prepare the necessary administrative
measures.  The process is expected to be concluded by the end of
August.  "Based on the current state of the negotiations, I am
convinced that it will be possible to secure a successful sale and
the long-term survival of the company within this timeframe," said
Mr. Schneider.  The sale is subject to the agreement of the
committee of creditors, the release of the essential parts of the
business by the banks as secured creditors and the approval of the
cartel authorities.

Before the opening of insolvency proceedings, BOWE SYSTEC has
already begun laying off 150 employees in Augsburg as part of the
implementation of Axentum's acquisition concept.  From August 1,
2010, these employees will be reassigned to a training and
transfer company, as was agreed with employee representatives.  A
total of 474 employees will be transferred to the "new BOWE" at
the Augsburg premises.

                         About BOWE SYSTEC

BOWE SYSTEC claims to be the European market leader in mailroom
systems.  While the public corporation (AG) affected by the
insolvency employs around 600 people, the group has around 3,300
employees worldwide.  In 2009 the Group generated consolidated
revenues of EUR367.1 million, which was 13.5% down on the previous
year as a result of the recession. Although the new top management
of BOWE SYSTEC AG has introduced dramatic restructuring measures
since early 2009, the company had to file for insolvency by mid-
May because it lacked a sound financing concept.


FRESENIUS SE: Fitch Gives Positive Outlook; Affirms 'BB' Rating
---------------------------------------------------------------
Fitch Ratings has changed Germany-based healthcare group Fresenius
SE's and Fresenius Medical Care AG & Co. KGaA's Outlook to
Positive from Stable while affirming their Long-term Issuer
Default Ratings at 'BB', respectively.

The change in Outlook reflects Fitch's expectation that Fresenius
will maintain a leverage of 2.5x-3x over the medium term.  This
will be supported by the group's enhanced flexibility to increase
equity funding of future acquisitions, following the proposed
change in legal form to KGaA (partnership limited by shares).

"Once the legal form change takes effect and provided the group
deleverages further in 2010, there is a strong likelihood that
Fitch will upgrade the ratings to 'BB+'," said Britta Holt, a
Director in Fitch's Corporates team.

During 2009, the group reduced net debt by EUR0.5 billion to
EUR7.9 billion, and net debt/EBITDA to 3x from its peak of 3.7x in
2008 when it mostly debt-funded the USD4.6bn acquisition of US
generic I.V. drugs maker APP (which closed in September 2008).

Fresenius' net leverage target of 2.5x-3x corresponds to an
estimated lease-adjusted net debt/EBITDAR of 3.3x-3.7x.  Any
further reduction in leverage in 2010 will be driven by growth at
FMC, whose lease-adjusted net debt/EBITDAR stood at 3.4x in 2009
(2008: 3.8x), and by the high-margin APP business.

The ratings are supported by Fresenius' number one global position
in the non-cyclical and steadily growing dialysis products and
services industry, where cash flows are relatively predictable.
Due to its vertical integration, Fresenius benefits from cost
advantages over its peers, and can build on its reputation for
providing technologically advanced products and high-quality
services.

Negative rating factors include the group's over-reliance on
dialysis (which accounted for 59% of 2009 group EBITDA, albeit
down from 71% in 2005), as well as its significant reliance on the
reimbursement policies of governments and private insurers.  Such
factors are somewhat offset by a more conservative financial
policy in the medium term.

Organic group sales growth was strong in H1 2010 at 9%, driven by
FMC (+7%), Kabi (+11%) and Fresenius Vamed (+36%).  Group cash
flow after capex (but before acquisitions and dividends) increased
to EUR485m from EUR308m in H109.  This was due to solid sales
growth, improved profitability as the group's EBITDA margin
increased to 18.5% in H110 (H109: 18.3%) and a reduction in
working capital outflows.  For 2010, the group expects constant
currency sales growth of 7%-9%.

The senior unsecured debt rating of 'BB' for the debt-issuing
entities of Fresenius and FMC reflects Fitch's view of average
recovery prospects on default.

Fresenius SE:

  -- Long-term IDR affirmed at 'BB'; Outlook changed to Positive
     from Stable

  -- Short-term IDR affirmed at 'B'

  -- Senior unsecured debt affirmed at 'BB'

  -- Senior secured debt affirmed at 'BBB-'

Fresenius Finance B.V.:

  -- Guaranteed senior notes affirmed at 'BB'

FMC:

  -- Long-term IDR affirmed at 'BB'; Outlook changed to Positive
     from Stable

  -- Short-term IDR affirmed at 'B'

  -- Senior unsecured debt affirmed at 'BB'

  -- Senior secured debt affirmed at 'BBB-'

Fresenius Medical Care Capital Trusts IV and V:

  -- Guaranteed subordinated trust preferred securities affirmed
     at 'B+'

Fresenius US Finance II.  Inc.:

  -- Senior unsecured notes affirmed at 'BB'

Fitch has made major improvements to its credit research on EMEA
and AsiaPac corporates.


=============
H U N G A R Y
=============


* HUNGARY: Company Liquidations Up 29% in July, Opten Says
----------------------------------------------------------
MTI-Econews, citing data published by Opten, reports that the
number of companies that went under liquidation was 1,712 in July,
up 29% from the same period last year, well above the 15%
registered in the first half of this year.

According to the report, Opten said the number of voluntary
liquidations amounted to 1,435 in July, rising 11% from July last
year.


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


ALLIED IRISH: Santander Favorite Bidder to Buy Zachodni Stake
-------------------------------------------------------------
Geoff Percival at The Irish Examiner reports that Santander has
emerged as the latest "favorite" to acquire Allied Irish Bank's
70% stake in Poland's Bank Zachodni and could end up taking over
most of the Irish banks' international assets.

The report says Santander winning the race for Zachodni could
increase AIB's chances of getting a better than average price for
its controlling stake.

The report relates a price tag of around EUR2 billion had been
loosely placed on AIB's Polish operations by some market
commentators and the sale of Zachodni is clearly viewed as being
the key cog in the bank's overall asset disposal strategy, which
is aimed at raising the EUR7.4 billion it needs to meet its
end-of-year refunding targets, as set out by the Financial
Regulator.

According to the report, the latest speculation has it that the
Spanish banking group is, in fact, negotiating with AIB to acquire
all of its foreign operations -- including its 23% stake in M&T
Bank in the US and its various British-based interests, including
the First Trust network in Northern Ireland.

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on July 23,
2010, Moody's Investors Service affirmed AIB's long-term bank
deposit and debt ratings.  These are A1 for long-term bank
deposits and senior debt, A2 for dated subordinated debt, Ba3 for
undated subordinated debt, B1 for cumulative tier 1 securities and
Caa1 for non-cumulative tier 1 securities.  Moody's said the
outlook on these ratings is stable.  AIB's bank financial strength
rating of D, which maps to Ba2 on the long term rating scale, with
a positive outlook was unaffected by the rating action.


EBS BUILDING: JC Flowers to Take 49% Stake
------------------------------------------
Suzanne Lynch at The Irish Times reports that JC Flowers, one of
four bidders for the EBS Building Society, confirmed Tuesday it is
to take a 49% stake in one of Britain's oldest building societies,
increasing speculation that the US private equity firm is emerging
as a serious contender as a suitor for the EBS.

The Irish Times relates David Morgan, JC Flowers' managing
director for Europe and Asia Pacific, told analysts Tuesday the
company is interested in financial services investments in
Ireland, amid reports that the company retained JP Morgan Chase as
part of its bid for the building society.

It is believed that British private equity firm, Doughty Hanson,
which owns TV3, and Cardinal Asset Management, a firm led by
Dublin executives Nick Corcoran and Nigel McDermott and which is
backed by Carlyle Group, are all due to submit bids by next
Monday, August 9, The Irish Times states.  Irish Life Permanent is
the fourth interested party, The Irish Times discloses.  The Irish
Times says JC Flowers had been working on an investment bid with
Cardinal Asset Management, but is now submitting its own bid.

Any deal between EBS and a private equity firm would involve a
co-investment by the Irish government, The Irish Times says.

According to The Irish Times, the EBS needs EUR785 million to meet
the core equity ratio of 7% set by the Financial Regulator.  The
State has already injected EUR350 million into the EBS and has
pledged to fund its fall if private investment is not forthcoming,
The Irish Times notes.

EBS Building Society is Ireland's largest building society.
Servicing more than 400,000 members, it distributes its products
through a branch and franchised agency network as well as handling
direct business both over the telephone and via the Internet.
EBS Building Society provides mortgage lending, savings,
investments, and insurance products in Ireland.

                           *     *     *

EBS Building Society continues to carry a standalone Bank
Financial Strength Rating of 'D' from Moody's Investors Service.
EBS's tier 1 debt is rated at 'Ca' by Moody's.


* IRELAND: Corporate Failures Up; Construction Sector Worst Hit
---------------------------------------------------------------
Business World, citing figures released Tuesday by
InsolvencyJournal.ie, reports that the number of Irish firms going
to the wall increased by over a fifth for the first seven months
of the year and are up 150% on the 2008 figures.

According to the report, InsolvencyJournal.ie found that the total
number of corporate failures so far this year has already exceeded
the yearly total for the whole of 2008 when 773 failures were
recorded.

The report says a total of 917 companies collapsed between January
and July of this year, up 22% on the 2009 figure of 754.  The
number of insolvencies dipped slightly in July, falling from 132
in June to 125 this month, the report notes.

Dublin recorded the highest number of insolvencies so far this
year, with 373 failures for the year-to-date, the report
discloses.

Construction was once again the worst affected as subdued private
sector activity and a reduction in capital spending continued to
cause problems for the sector, the report states.  A total of 277
construction firms collapsed between January and July 2010, 30% of
the total, and up 11% compared to last year when 249 insolvencies
were recorded, the report discloses.

According to the report, the number of receivers appointed to
indebted companies continues to rise in July with 25 companies
entering receivership, the highest monthly total since the
beginning of the current economic downturn.  A total of 143
companies entered receivership between January and July 2010, up
142% on the same period last year and surpassing the yearly total
for 2009 when 124 receivers were appointed, the report relates.

Low levels of examinerships continue to be recorded in 2010 and
not a single company entered court protection last month, the
report notes. So far this year, examiners have been appointed to
just nine companies, compared to 21 in 2009 and 15 in 2008, the
report says.

According to the report, although fewer companies are entering
court protection this year, the success rate is improving.  Of the
nine companies which have entered examinership so far this year,
only one has failed, while a number of high profile firms have
avoided liquidation through court protection, the report states.


* IRELAND: EU Commission Okays Transfer of Loans to NAMA
--------------------------------------------------------
Ciara O'Brien at The Irish Times, citing the Financial Times,
reports that the European Commission has approved the transfer of
the first tranche of loans to the National Asset Management Agency
(Nama).

According to the report, the transfer of the impaired bank loans
was authorized under EU state aid rules, with the commission
describing it as an "appropriate means of remedying a serious
disturbance".

The report notes the EU said, "In particular, the transfer
satisfies predefined transparency and disclosure requirements, the
assets fulfill the criteria for participation in the scheme, and
their valuation complies with the requirements of the commission's
guidance and results in adequate burden-sharing."

The average discount applied to the first EUR16 billion tranche of
loans was 47%, the report states.


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


TRISTAN OIL: Fitch Downgrades Issuer Default Rating to 'RD'
-----------------------------------------------------------
Fitch Ratings has downgraded Tristan Oil Ltd.'s Long-term foreign
currency Issuer Default Rating to 'RD' (Restricted Default) from
'C' and removed it from Rating Watch Negative.  Tristan's senior
unsecured rating is 'C' with a Recovery Rating of 'RR6'.

The downgrade reflects the fact that, according to Tristan, it is
still unable to make interest payment on the outstanding eurobonds
following the expiry of a 30-day grace period at end-July 2010.

Fitch further notes that the recent cancellation of the subsoil
use contracts of two operating companies -- Kazpolmunay and
Tolkynneftegaz -- by the Kazakh Ministry of Oil and Gas may
trigger a bondholders' put option under a change of control
provision in the bond documentation.  If a put option is
triggered, Fitch believes that Tristan is unlikely to be able to
meet its obligations to repurchase the bonds due to its weak
financial position as reflected in its FY09 financials.


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


BANK ROSSIYA: Moody's Affirms 'E+' Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has affirmed the E+ bank financial
strength rating and B2 local and foreign currency deposit ratings
of Bank Rossiya, which was created on August 2, 2010, following
the merger of two Russian financial institutions: Bank Rossiya and
Gazenergoprombank.  Concurrently, Moody's Interfax Rating Agency
affirmed the Baa1.ru long-term National Scale Rating of the merged
Bank Rossiya.  Moscow-based Moody's Interfax is majority owned by
Moody's.  The outlook is stable on all Bank Rossiya's global-scale
ratings, while its NSR carries no specific outlook.

Simultaneously, Moody's has downgraded to B2 from Ba3 the local
and foreign currency deposit ratings of GEPB, while its BFSR of E+
was affirmed.  The downgrade of GEPB's deposit ratings concludes
the review initiated on April 6, 2010.  Concurrently, Moody's
Interfax Rating Agency has downgraded the long-term NSR of GEPB to
Baa1.ru from Aa3.ru.Moody's notes that Bank Rossiya's E+ BFSR --
which maps into a B2 Baseline Credit Assessment -- is at the same
level as that of each of the merged banks before the merger, and
is constrained by the relatively high level of single-name
concentrations on both sides of its balance sheet, as well as by a
high level of related-party exposures.  Such weakness in risk-
positioning is reflected in the sizable aggregated exposure to two
groups of borrowers as of year-end 2009 which exceeded the bank's
IFRS standalone shareholders' equity, while its eight largest
corporate customers contributed 65% of total customer accounts.
Loans to companies controlled by shareholders and management
accounted for 62% and 50% of the bank's standalone IFRS
shareholder's equity at year-end 2009 and 2008, respectively.

"Although some constraining factors are likely to improve
following the merger, such as credit concentration levels, Moody's
has yet to obtain sufficient evidence that lower concentration
levels will be maintained in the long term," said Semyon Isakov,
the lead analyst on the merged bank.  "Therefore, post-merger,
Bank Rossiya's BFSR remains at E+, mapping to a B2 BCA, the same
as the pre-merger ratings of the bank," adds Mr. Isakov.

Moody's adds that despite Gazprom being the ultimate shareholder
of the merged Bank Rossiya (with a minority 15.7% stake), the
rating agency considers the probability of the parental support
currently incorporated into the merged bank's ratings as unlikely
given (i) Gazprom's minority stake; (ii) the absence of close
oversight; (iii) no alignment of Bank Rossiya's brand with
Gazprom's brand; and, particularly (iv) an unclear strategic fit
of the merged bank into Gazprom's core business.  Therefore, Bank
Rossiya's deposit ratings do not incorporate any probability of
parental support, and are at the same level as the bank's
standalone financial strength rating of B2.

In downgrading GEPB's deposit ratings to B2 from Ba3, Moody's also
notes that the ratings no longer benefit from the assumption of
parental support by Gazprom, which had been incorporated into the
ratings of GEPB before the merger.  The affirmation of GEPB's E+
BFSR reflects the fact that the standalone financial strength of
the merged Bank Rossiya is at the same level as it was for GEPB
before the merger.

The E+/B3/Not Prime ratings of Sobinbank, which was previously a
100% subsidiary of GEPB and has now become a fully-owned
subsidiary of the merged bank, were unaffected by the merger.
Sobinbank's ratings were based on its standalone financial
strength, and did not incorporate any parental support before the
merger.  Similarly, Moody's does not incorporate any parental
support from the merged Bank Rossiya into Sobinbank's ratings, as
the latter's strategic fit to its new parent's business is not
clear.  Moreover, Bank Rossiya has not announced any long-term
plans with regard to its stake in Sobinbank or the strategy and
branding policies thereon.

Moody's previous rating actions on Bank Rossiya, Gazenergoprombank
and Sobinbank were on 6 April 2010, when the rating agency placed
the Ba3 long-term local and foreign currency deposit ratings and
the Aa3.ru NSR of GEPB on review for possible downgrade.  GEPB's
E+ BFSR was affirmed with a stable outlook.  At the same time,
Moody's affirmed the Not Prime short-term deposit ratings of GEPB
and changed to stable from positive the outlook on the B3 long-
term local and foreign currency deposit ratings of Sobinbank.
Sobinbank's E+ BFSR, the Not Prime short-term local and foreign
currency deposit ratings, and the Baa2.ru NSR were unaffected by
this rating action.  The outlook on Sobinbank's BFSR remained
stable, and Bank Rossiya's ratings were not affected by that
rating action.

Headquartered in St. Petersburg, Bank Rossiya reported stand-alone
total assets of RUB111.9 billion (US$3.7 billion) and
shareholders' equity of RUB7.7 billion (US$256 million), in
accordance with IFRS as at 31 December 2009.

Headquartered in Moscow, Gazenergoprombank reported IFRS total
assets of RUB168 billion (US$5.5 billion) and shareholders' equity
of RUB13.5 billion (US$447 million) as at 31 December 2009.  GEPB
reported IFRS net loss of RUB345 million (US$11.4 million) in
2009.

Headquartered in Moscow, Sobinbank reported IFRS total assets of
US$1.8 billion and total shareholders' equity of US$129 million as
at 31 December 2009, its IFRS loss for the period then ended
totaled IFRS US$102.5 million.


* NOGINSK MUNICIPAL: Fitch Lifts Foreign & Local Currency Ratings
-----------------------------------------------------------------
Fitch Ratings has upgraded the Noginsk Municipal District of
Moscow region's (Russia) Long-term foreign and local currency
ratings to 'B-' from 'CCC', its Short-term foreign currency rating
to 'B' from 'C' and National Long-term rating to 'BB-(rus)' from
'B+(rus)'.  The Outlooks for the Long-term ratings are Stable.

The upgrade reflects the district's reduced refinancing risk,
following successful repayment of debt peaks in H209 and H110, and
its diverse economy, which has benefited from the improved
national economic environment and its close proximity to The City
of Moscow.  The ratings also consider the district's fiscal
dependence on the Moscow region and its weaker operating
performance in 2009.

The district reported moderate direct debt at 13.4% of current
revenue in 2009 (2008: 14%), and extended direct debt maturity in
2010, leaving behind only short-term refinancing risks.  Noginsk
redeemed its RUB500 million domestic bond in H209 with short-term
bank loans which were then replaced by two-year loans in H110.
The district's exposure to contingent liabilities is limited to
few public companies, which service their own debt.

Fiscal independence of Noginsk is limited by tax-sharing rates on
personal income tax and other inter-budgetary arrangements of the
Moscow region.  The Moscow region's transfers to the municipality
were negatively affected by weakened budgetary performance in
2008-2009.  As a result, Noginsk operating margin deteriorated in
2009 to -4.2% in 2009 from 7.3% in 2008.  However, an improved
economic outlook for Russia should support revenue sources and
benefit Noginsk's budgetary performance.  This in turn should help
restore the operating margin to 1% in 2010 and up to 3%-5% in
2011-2012.

The local economy is well-diversified and industrialized.  The
municipality's close proximity to The City of Moscow stimulates
economic development and demand for its construction materials,
agriculture and other products are stable.  Wealth indicators of
the Moscow region are well above the nation's median, with the
region contributing 4.9% of Russia's GDP in 2008.  The district's
208,900 inhabitants accounted for 3.1% of the region's total
population in 2009.


===============
S L O V E N I A
===============


PREVENT GLOBAL: Management Files Request for Receivership
---------------------------------------------------------
Slovenska tiskovna agencija reports that the management of Prevent
Global filed a request for receivership with the Slovenj Gradec
District Court on Tuesday, ending days of speculation about the
fate of the company.

As reported by the Troubled Company Reporter-Europe on July 26,
2010, Slovenska tiskovna agencija said Prevent Global declared
insolvency on July 22.

Prevent Global is a Slovenj Gradec-based maker of car seat covers.


* SLOVENIA: Finance Seeks More Efficient Bankruptcy Proceedings
---------------------------------------------------------------
Slovenska tiskovna agencija reports that Business Daily Finance
suggested to the government on Wednesday that it should make
bankruptcy proceedings more efficient rather than trying to help
companies, which should go into receivership.


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


INTERPIPE LTD: Seeks Restructuring of US$200 Million Eurobonds
--------------------------------------------------------------
Ukrainian News Agency reports that Interpipe Limited proposed to
holders of its eurobonds for US$200 million to restructure the
eurobonds for seven years and increase the yield from 8.75% to
10.25% of annual interest.

According to the report, the meeting of eurobonds holders is set
for September 17, 2010.

Interpipe, the report says, also proposes bondholders a payment of
US$17.5 million on October 31, 2010, to satisfy any interests that
is both accrued and unpaid on the eurobonds if bondholders agree
to restructure the debt (the payments were due on February 2 and
August 2, 2010).  August 2, 2010, was the date for redemption of
the eurobonds, the report discloses.

The report recalls Interpipe in February proposed holders of its
eurobonds for US$200 million to reconsider the terms of the
default.  Prior to this, the Luxembourg Stock Exchange suspended
trading in eurobonds of Interpipe following a default, having not
paid semi-yearly yield on its securities, the report recounts.
Interpipe did not pay US$8.75 million in six-month coupon yield on
the eurobonds, the report discloses.

Interpipe is the largest producer of pipes and wheels in Ukraine.


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


CONNAUGHT PLC: Lenders Sell Loans Following Debt Breach Warning
---------------------------------------------------------------
Anousha Sakoui at The Financial Times reports that lenders to
Connaught have started selling their loans to the company, in a
sign of their concern about the state of the social housing
maintenance group.

Barclays, one of Connaught's syndicate of banks, which is led by
Royal Bank of Scotland, on Monday night sold its entire exposure
of GBP19 million (US$30 million) for about 37% of face value, the
FT says, citing people with knowledge of the transaction

According to the FT, the loan was sold to several hedge funds,
thought to be specialists in distressed debt investing, via the
trading desk of Barclays' investment banking arm.

The FT relates one person close to the situation said Allied Irish
Bank, a member of the original lender group, had previously sold
its loans to another member of the syndicate.  Other syndicate
members include Lloyds Banking Group and Bank of Ireland, the FT
discloses.

Shareholders have already seen about 90% of the value of their
shares wiped out since late June when the company issued a profit
warning, the FT notes.

In recent weeks, lenders drafted in KPMG to advise them on a
possible restructuring of Connaught's debts, the FT states.

As reported by the Troubled Company Reporter-Europe on Aug. 2,
2010, The FT said bankers granted Connaught a vital short-term
GBP15 million (US$23 million) overdraft facility.  The FT
disclosed the cash injection, which Connaught confirmed it had
received on July 29, gives the FTSE 250 company time to negotiate
a deal with lenders to safeguard its longer-term future.  The FT
related Connaught warned that it was in urgent need of additional
funds, in part because suppliers and subcontractors -- which
include Travis Perkins and BSS, the builders' merchants -- had
exerted "additional pressure" on the group since it issued a
profit warning last month.  The FT noted that while the cash
injection gives Connaught some breathing space, the group is still
set to breach the terms of its loans as it warned that net debt
would be higher at its financial year-end next month than the
GBP120 million it had previously advised.  According to the FT,
people familiar with the matter said some form of debt-for-equity
swap, disposals, an outright sale, rights issue or involvement of
distressed debt funds were all potential options.  Connaught, as
cited by the FT, said that the overdraft facility would be in
addition to current facilities of GBP200.6 million.  Connaught
said that it had secured deferral of interest and principal
payments due on its existing facilities in July and August,
according to the FT.

Connaught plc -- http://www.connaught.plc.uk/-- is a United
Kingdom-based company engaged in the provision of integrated asset
services to the public and private sectors.  The Company operates
in two business segments: social housing and compliance.  Social
Housing segment provide social housing landlords throughout the
United Kingdom with a range of planned and response maintenance
services, as well as compliance and estate management.  The
Compliance segment provides safety, health and risk management
solutions.  It has information, advisory, training and servicing
capabilities to provide integrated compliance solution throughout
the United Kingdom.  On July 22, 2009, the Company completed the
acquisition of UK Fire (International) Limited and Igrox Limited.
On September 15, 2008, the Company completed the acquisition of
Lowe Group Holdings Ltd.  On November 26, 2008, the Company
completed the acquisition of certain assets of Predator Pest
Control Plc.


LLOYDS BANKING: Denies Rumors of Replacing CEO Eric Daniels
-----------------------------------------------------------
The Scotsman reports that Lloyds Banking Group on Tuesday night
dismissed claims that it has begun the search for a replacement
for chief executive Eric Daniels.

The report relates a spokesman for the bank, which is 41% owned by
the government, flatly denied rumors that it has started a formal
process of succession planning.

The report notes that although the markets have long been awash
with speculation as to when Mr. Daniels would depart Lloyds, the
bank insisted no date has yet been set.  Mr. Daniels came under
heavy fire following the group's takeover of HBOS in September
2008, the report discloses.

                  About Lloyds Banking Group PLC

Lloyds Banking Group PLC, formerly Lloyds TSB Group plc,
(LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United
Kingdom-based financial services group providing a range of
banking and financial services, primarily in the United Kingdom,
to personal and corporate customers.  The Company operates in
three divisions: UK Retail Banking, Insurance and Investments, and
Wholesale and International Banking.  Its main business activities
are retail, commercial and corporate banking, general insurance,
and life, pensions and investment provision.  The Company also
operates an international banking business with a global footprint
in 40 countries.  Services are offered through a number of brands,
including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows,
Clerical Medical and Cheltenham & Gloucester.  On January 16,
2009, Lloyds Banking Group plc acquired HBOS plc.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on March 17,
2010, Standard & Poor's Ratings Services said that it lowered its
rating on a GBP56.472 million 6.475% preference share issue by
Lloyds Banking Group (A/Stable/A-1) to 'C' from 'CC' following the
first missed coupon payment.  The rating action was the
first of S&P's forthcoming rating actions on over 40 hybrid
instruments issued by Lloyds and related entities with
discretionary coupon payments.  According to S&P, each security
would be lowered to 'C' from 'CC' on the date of the first coupon
payment to be missed.


LLOYDS BANKING: To Retain 60% Stake in St. James's Place
--------------------------------------------------------
Daniel Thomas and Alistair Gray at The Financial Times report that
St. James's Place said Lloyds Banking Group had committed itself
to keeping a majority shareholding in the wealth management group
in an attempt to end months of speculation that has depressed its
share price.

St James's Place, which on July 28 reported strong growth in
first-half figures to June 30, said Lloyds had made clear it was a
strong supporter of the company and that it had no intention to
reduce or dispose of its stake.

Lloyds owns 60% of the company and has been expected to sell
stakes in non-core parts of its business portfolio.

                  About Lloyds Banking Group PLC

Lloyds Banking Group PLC, formerly Lloyds TSB Group plc,
(LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United
Kingdom-based financial services group providing a range of
banking and financial services, primarily in the United Kingdom,
to personal and corporate customers.  The Company operates in
three divisions: UK Retail Banking, Insurance and Investments, and
Wholesale and International Banking.  Its main business activities
are retail, commercial and corporate banking, general insurance,
and life, pensions and investment provision.  The Company also
operates an international banking business with a global footprint
in 40 countries.  Services are offered through a number of brands,
including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows,
Clerical Medical and Cheltenham & Gloucester.  On January 16,
2009, Lloyds Banking Group plc acquired HBOS plc.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on March 17,
2010, Standard & Poor's Ratings Services said that it lowered its
rating on a GBP56.472 million 6.475% preference share issue by
Lloyds Banking Group (A/Stable/A-1) to 'C' from 'CC' following the
first missed coupon payment.  The rating action was the
first of S&P's forthcoming rating actions on over 40 hybrid
instruments issued by Lloyds and related entities with
discretionary coupon payments.  According to S&P, each security
would be lowered to 'C' from 'CC' on the date of the first coupon
payment to be missed.


NORTHERN ROCK: "Good Bank" Posts Losses While "Bad Bank" Profits
----------------------------------------------------------------
Sharlene Goff and Adam Jones at The Financial Times report that
the risky loan portfolio that has been branded Northern Rock's
"bad" bank jumped back into profit in the first half of the year,
outstripping the performance of the still lossmaking "good" part
of the nationalized bank.

According to the FT, the new Northern Rock bank, which houses its
savings accounts and writes new mortgage lending, recorded a
GBP142.6 million pre-tax loss for the first six months, as the
high cost of providing saving accounts eroded margins.

Meanwhile, Northern Rock Asset Management, which houses the bulk
of the old residential mortgage portfolio and the GBP22.5 billion
government loan, made a pre-tax profit of GBP349.7 million
compared with a GBP724 million loss a year ago, the FT relates.
The FT says this business returned GBP1.4 billion to the taxpayer
in the first half -- the profit, together with a GBP300 million
repayment of its government loan and a GBP780 million gain from
the purchase of its own debt.

The FT notes Gary Hoffman, chief executive of both parts of the
bank, predicted Northern Rock bank would remain lossmaking in the
second half, while the physical split of the two businesses should
be completed by December.  The "good" business has attracted
interest from private buyers, the FT discloses.

                       About Northern Rock

Headquartered in Newcastle upon Tyne, England, Northern Rock plc
-- http://www.northernrock.co.uk/-- deals with mortgages, savings
accounts, loans and insurance.  The company also promotes secured
loans to its existing mortgage customers.  The company had more
than US$200 billion in assets at the end of June 2007.

                           *     *     *

Northern Rock's dated subordinated lower Tier 2 debt continues to
carry a 'BB' rating from Standard & Poor's Ratings Services with a
stable outlook.  The rating was raised to its current level from
'CCC' in December 2009.


NOVOTEL EDINBURGH: Bought Out of Administration
-----------------------------------------------
Europe Real Estate reports that Benson Elliot Capital Management
and Algonquin SA have completed the joint acquisition of the
Novotel Edinburgh Park in Edinburgh.  The hotel will be acquired
from administrators KPMG, the report says.

The acquisition, the second for Benson Elliot in the UK following
the purchase of CBXII in Milton Keynes in late March, was made on
behalf of Benson Elliot Real Estate Partners II, L.P., the report
notes.

Following six acquisitions in the past 18 months, the Novotel
Edinburgh Park will become the 23rd hotel in Algonquin's portfolio
and is its first investment in the United Kingdom, the report
states.

Accor will continue to manage the hotel under the Novotel brand,
the report discloses.  The acquisition was financed by Barclays
Corporate, according to the report.

Novotel Edinburgh Park opened in mid-2008.  The hotel comprises
170 rooms, a restaurant, meeting rooms and a leisure facility
(including a swimming pool).  It is the only hotel situated within
Edinburgh Park, one of the UK's premier office business parks,
which is located near Edinburgh Airport and the city bypass and
provides office accommodation to over 9,000 employees and many of
the UK's leading companies, according to Europe Real Estate.


PORTSMOUTH FOOTBALL: To Face Liquidation if HMRC Wins CVA Appeal
----------------------------------------------------------------
BBC Sport reports that Portsmouth Football Club will find out
today whether an appeal by tax authorities, which disputes the
amount of money they are owed, has been successful.

BBC says HM Revenue & Customs says it is owed GBP13 million more
than the GBP24 million claimed by Portsmouth's administrators.

If the appeal succeeds, Pompey could face a further points penalty
and the threat of liquidation, BBC notes.

According to BBC, HMRC claims it is owed a total of GBP37 million
and is challenging a Company Voluntary Agreement which would allow
Portsmouth to exit administration.

For a CVA to be agreed, it must win the support of those owed at
least 75% of the unsecured debt, BBC discloses.  BBC recalls on
June 17 the proposed agreement garnered 81.3% of the vote.  But
HMRC has argued that the disputed GBP13 million of debt was left
out of the original calculations and, if included, it would then
have more than the 25% of the debt it needs to block the CVA, BBC
relates.

According to BBC, if it wins the case, HMRC could lose the
GBP6 million offered under the CVA, with Richard Sheldon QC
representing Portsmouth saying: "We see no reason why HMRC want to
pursue this appeal.  They'd be shooting themselves, other
creditors and the fans in the foot.  I ask them to go away and
consider whether they want to pursue this."

If High Court judge Mr. Justice Mann finds in favor of HMRC and
Portsmouth exit administration without agreeing a CVA, they could
be docked 15-20 points by the Football League, BBC states.  The
administrators may then believe they have no option but to
liquidate the club, BBC notes.

Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/--
operates Portsmouth FC, a professional soccer team that plays in
the English Premier League.  Established in 1898, the club boasts
two FA Cups, its last in 2008, and two first division
championships.  Portsmouth FC's home ground is at Fratton Park;
the football team is known to supporters as Pompey.  Dubai
businessman Sulaiman Al-Fahim purchased the club from Alexandre
Gaydamak in 2009.  A French businessman of Russian decent,
Gaydamak had controlled Portsmouth Football Club since 2006.


ROYAL BANK: Gets GBP5.6 Million Fine
------------------------------------
Sharlene Goff at The Financial Times reports that Royal Bank of
Scotland has been fined GBP5.6 million for failing to ensure that
funds were not transferred to terrorist groups or other people
facing Treasury sanctions.

According to the FT, RBS was punished for having insufficient
checks in place to identify payment transactions that could
potentially have involved those on the Treasury's sanctions list.
This resulted in an "unacceptable risk" that RBS could have
facilitated payments to terrorist organizations, the FT states.

The Treasury sanctions list includes groups such as al-Qaeda and
the Taliban, as well as a number of Middle Eastern and African
companies and a series of people in countries such as Iran, Iraq,
North Korea and the Democratic Republic of Congo, the FT
discloses.

The FT says RBS and its subsidiary businesses, including NatWest,
Ulster Bank and Coutts, did not have sufficiently sophisticated IT
systems in place to flag up those that might be on the sanctions
list.  Names that did not match exactly with those on the
Treasury's list or that used an initial rather than a full name,
for instance, might have slipped through the checks, meaning that
a relatively small number of transactions were thrown up for
further investigation, the FT states.

The FT notes that while there was no evidence that transactions
between sanctioned organizations took place, the FSA's verdict
highlights the kind of unchecked behavior that critics say
permeated RBS under the leadership of Sir Fred Goodwin, its former
chief executive.

The fine relates to payments made between December 2007 and
December 2008, the FT discloses.

The FT relates the issue was spotted by the bank's new management
team, which took over at the end of 2008 following the government
bail-out, and was flagged to the regulator at that time.

RBS qualified for a 30% reduction in the fine for agreeing to
settle, according to the FT.  Without this discount the fine would
have been GBP8 million, the FT notes.

                            About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed of its entire
interest in Global Voice Group Ltd.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on March 29,
2010, Standard & Poor's Ratings Services said that it lowered its
ratings on "may pay" Tier 1 securities issued or guaranteed by The
Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'.
At the same time, the rating on the RBSG-related security issued
by Argon Capital PLC was similarly lowered to 'C' from 'CC'.  The
counterparty credit ratings and stand-alone credit profiles of
RBSG and subsidiaries, and the ratings on other debt securities
issued by these entities, are unaffected.


ROYAL BANK: May Keep 20% Stake in WorldPay Following Sale
---------------------------------------------------------
Royal Bank of Scotland Group Plc may keep a 20% stake in its
credit-card payment processing unit as part of a planned sale of
the division to Advent International Corp. and Bain Capital LLC,
Brett Foley and Andrew MacAskill at Bloomberg News report, citing
two people with knowledge of the matter.

According to Bloomberg, the people said Advent and Bain may
complete the purchase of the unit, known as WorldPay and valued at
as much as GBP2.5 billion (US$4 billion), before Edinburgh-based
RBS announces earnings on Aug. 6.

RBS, Britain's biggest government-owned bank, is selling assets
including WorldPay, 318 U.K. bank branches and its insurance
division after receiving GBP45.5 billion of funding from the U.K.
government during the credit crisis, more than any other bank in
the world, Bloomberg notes.

                            About RBS

The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed of its entire
interest in Global Voice Group Ltd.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on March 29,
2010, Standard & Poor's Ratings Services said that it lowered its
ratings on "may pay" Tier 1 securities issued or guaranteed by The
Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'.
At the same time, the rating on the RBSG-related security issued
by Argon Capital PLC was similarly lowered to 'C' from 'CC'.  The
counterparty credit ratings and stand-alone credit profiles of
RBSG and subsidiaries, and the ratings on other debt securities
issued by these entities, are unaffected.


SOUTHERN PACIFIC: S&P Raises Ratings on Various Classes of Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Southern Pacific Securities 04-1 PLC's class M and B notes and
Southern Pacific Securities 04-2 PLC's class C, D, and E notes.
At the same time, S&P affirmed all other ratings in these
transactions.

Both transactions have low pool factors: 6.40% in SPS 04-1 and
8.73% in SPS 04-2.  As well as the nonamortizing reserve funds
(GBP8.9 million or 23.11% in SPS 04-1, and GBP7.0 million or
11.30% in SPS 04-2), S&P's analysis shows that a sufficient amount
of enhancement has built up in support of an upgrade of the
subordinate notes.

Performance in both transactions has improved, with falls in
recent quarters in delinquencies and repossessions.  SPS 04-1 has
experienced a drop in 90+ day delinquencies (including
repossessions), to 24.006% in June 2010 from 26.043% in March.  In
SPS 04-2, they have fallen to 30.671% in June from 34.587% in
March.

The loan-to-value ratio has also fallen in both transactions,
somewhat alleviating the risk of adverse selection, where higher
LTV loans remain in the pool when lower LTV ones pay down.

Both transactions' positive performance in recent quarters has led
to improvements in the credit characteristics, in S&P's view,
which S&P considered during S&P's assessment of the risks present
in these transactions.

In the most recent interest payment period, S&P has seen only a
small draw from the reserve fund for SPS 04-1.  The reserve in
this transaction is now funded at 98.40% of the required
GBP9 million.

Additionally, the issuers pay liquidity facility fees on the full
nonamortizing amount in both transactions (GBP20 million for SPS
04-1, GBP42.35 million for SPS 04-2).  Step-up of these fees will
not occur until February 2012 and August 2012, respectively, at
which point these fees will increase the cost to the transactions.

The draw on the reserve, together with the nonamortizing and drawn
cash liquidity facility, limits S&P's current rating assessment of
the lowest class of notes to 'BBB(sf)'.

                           Ratings List*

                         Ratings Raised

               Southern Pacific Securities 04-1 PLC
         EUR325.7 Million, GBP215.2 Million, US$310 Million
                Mortgage-Backed Floating-Rate Notes

                          Ratings Raised

                                 Rating
                                 ------
                Class        To                From
                -----        --                ----
                M            AAA(sf)           AA(sf)
                B            BBB(sf)           BB+(sf)

                         Rating Affirmed

                       Class        Rating
                       -----        ------
                       A2           AAA(sf)

               Southern Pacific Securities 04-2 PLC
      EUR210 Million, GBP493.5 Million, US$122.5 Million
             Mortgage-Backed Floating-Rate Notes

                          Ratings Raised

                                 Rating
                                 ------
                Class        To                From
                -----        --                ----
                C1a          AAA(sf)           AA(sf)
                C1c          AAA(sf)           AA(sf)
                D1a          A+(sf)            BBB+(sf)
                D1c          A+(sf)            BBB+(sf)
                E            BBB(sf)           BB+(sf)

                         Ratings Affirmed

                       Class        Rating
                       -----        ------
                       B1b          AAA(sf)
                       B1c          AAA(sf)

* Standard & Poor's Ratings Services recently announced the
  categories of debt instruments whose ratings will be given a
  structured finance symbol (sf) as required under the European
  Regulation on Credit Rating Agencies (Regulation (EC) No
  1060/2009) in force from December 2009.

Standard & Poor's also announced its intention to apply the symbol
to all relevant structured finance ratings globally from early
September 2010 (in line with S&P's intention to apply for
registration under the Regulation).  The additional symbol of (sf)
appears on the rating of this instrument as part of a limited test
and will not necessarily appear on other relevant structured
finance ratings that are released before September 2010.


ST URSULA'S: In Administration; Faces Closure
---------------------------------------------
Evening Post reports that St. Ursula's has gone into
administration.

The report relates Nigel Morrison and Trevor O'Sullivan, both
partners of Grant Thornton, have been appointed joint
administrators.

According to the report, Mr. O'Sullivan said: "The school has
suffered from a progressive decline in pupil numbers -- from a
peak of about 400 to the current level of about 160 -- such that
it is no longer financially viable in its current format. While
the trustees have made every effort to find a potential purchaser
capable of delivering a sustainable school operation,
unfortunately this has not been achievable in the context of the
many constraints and short timescale available.  As a result,
there is no available funding and the trust has been unable to
meet July salary payments.  Consequently, the school will close.
In these circumstances, our priority will be to deal with the
difficult positions in which both the staff and parents find
themselves.  For example, we will provide every assistance we can
in helping parents to find alternative places for their children,
including liaising with the local education authority here in
Bristol and also seek to arrange meetings with parents and
teachers, at the school, as soon as practical."

St. Ursula's is a Bristol-based independent mixed catholic private
school.


TAYLOR WIMPEY: Earns GBP19.6 Million in Six Months Ended July 4
---------------------------------------------------------------
Ed Hammond at The Financial Times reports that Taylor Wimpey
posted pre-tax profits of GBP19.6 million (US$31.2 million) for
the six months to July 4, compared with a GBP673 million loss
during the same period a year earlier.

The FT says sales of GBP1.2 billion for the six months were
slightly ahead of GBP1.1 billion a year earlier.

The group, which is planning to refinance, also managed to shed
GBP117 million of debt to end the period with borrowings of GBP633
million, the FT notes.

                        Refinancing Talks

As reported by the Troubled Company Reporter-Europe on July 13,
2010, the FT said Taylor Wimpey was negotiating with lenders over
a refinancing package that would increase the ability of the
company to buy land.  The FT disclosed the company was seeking to
refinance its bonds and bank loans after last year completing a
GBP1.55 billion debt restructuring that extended the repayments
due on its debts to July 2012.  The FT noted a person close to
Taylor Wimpey said there was no danger of the group breaching its
borrowing covenants, but the restrictions on spending would "limit
its ability to meet returning buyer demand."

                       About Taylor Wimpey

Taylor Wimpey plc -- http://www.taylorwimpey.com/-- is a
homebuilding company with operations in the United Kingdom, North
America, Spain and Gibraltar.  The Company has 34 regional
businesses and five smaller satellite operations.  It operates two
core brands: Bryant Homes and George Wimpey.  The George Wimpey
brand incorporates modern design and contemporary living into each
home and offers customers a range of options to personalize their
home.  Its Gibraltar business operates in the luxury apartment
market.  The Company operates in five divisions: Housing United
Kingdom, Housing North America, Housing Spain and Gibraltar,
Construction and Corporate. On July 3, 2007, George Wimpey PLC
merged with Taylor Woodrow plc to create Taylor Wimpey plc.  In
September 2008, the Company announced the sale of the United
Kingdom business of Taylor Woodrow Construction to VINCI PLC.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on July 12,
2010, Fitch Ratings affirmed UK house-builder Taylor Wimpey Plc's
Long-term Issuer Default Rating at 'B' with a Stable Outlook.
Fitch also affirmed TW's Short-term IDR at 'B' and senior
unsecured rating at 'B-'.


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


* EUROPE: Banks Take Control of Private-Equity-Backed Companies
---------------------------------------------------------------
Global Insolvency, citing Dow Jones Daily Bankruptcy Review,
reports that banks have taken control of almost EUR50 billion
(US$65 billion) of private-equity-backed companies in Europe since
the beginning of 2009 as a result of those companies defaulting on
their debt.

According to Global Insolvency, the banks are telling private
equity firms to inject more money into troubled companies, or risk
losing control.

Private-equity-backed companies, with debt totaling EUR32 billion,
have been in part or wholly acquired by lenders following a
restructuring since the beginning of 2009, Global Insolvency says,
citing analysis by Financial News of data from Debtwire.  As
typical private equity deals are generally two-thirds funded by
debt, the value of these companies when they were acquired is
estimated to be about EUR48 billion, Global Insolvency notes.  In
response, banks have added staff to deal with their growing
portfolios, Global Insolvency states.


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

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.


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