TCREUR_Public/100816.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Monday, August 16, 2010, Vol. 11, No. 160



COMPAGNIE GENERALE: Moody's Gives Negative Outlook on Ba2 Rating


STABILITY CMBS: Moody's Affirms Rating on Class E Notes at 'Ba3'
WESTLB AG: Wind-Down Scheme Contributed to EUR334MM Trading Loss


BAEV ZRT: Creditors File HUF1.65 Billion in Claims


ARNOTTS HOLDINGS: Three New Directors Appointed to Board
ARNOTTS HOLDINGS: Mulls Stock Market Flotation, New Chair Says
AVOCA CLO: S&P Downgrades Credit Rating on Class D Notes to CCC+
BANK OF IRELAND: Says Can Operate Without Further Gov't Guarantee
CASHEL MOTORS: In Liquidation; 19 Jobs Affected

CELTIC RESIDENTIAL: Moody's Lowers Rating on Class C Notes to B3
ELAN FINANCE: Moody's Assigns 'B2' Rating on New Senior Notes
NEW BOND: Moody's Junks Rating on Class X Floating Rate Notes


CREDICO FUNDING: S&P Downgrades Rating on Class E Notes to 'CCC'
TIRRENIA DI NAVIGAZIONE: Declared Insolvent; Union Opposes Breakup


* LATVIA: IMF Calls for Restructuring of Two State-Owned Banks


* Moody's Assigns 'B3' Issuer Rating on Republic of Moldova


MESDAG BV: Fitch Affirms 'CCC' Ratings on Two Classes of Notes


NORSKE SKOGINDUSTRIER: S&P Cuts Corporate Credit Rating to 'B-'


MERKUR D.D.: Creditors Back Restructuring Plan
VEGRAD D.D.: Is Insolvent; Prepares Financial Overhaul

U N I T E D   K I N G D O M

FRESH ITALY: In Administration; Three Sites Put Up for Sale
ISLE OF SHUNA: In Administration Following Cash Flow Problems
ITV PLC: Moody's Upgrades Corporate Family Rating to 'Ba3'
MRS DISTRIBUTION: In Receivership; Scottish Business Sold to JBT
SUN 4 U: Ceases Trading; Around 1,200 Holidaymakers Stranded

* UK: Creditors Accelerate Commercial-Property Sales


* EUROPE: Bondholders Must Bear Cost of Bank Collapse

* BOND PRICING: For the Week August 9 to August 13, 2010



COMPAGNIE GENERALE: Moody's Gives Negative Outlook on Ba2 Rating
Moody's Investors Service has changed the outlook on all ratings
of Compagnie Generale de Geophysique-Veritas to negative from

The rating action was prompted by Moody's concerns that there is
increased uncertainty around the timing of a potential recovery in
CGGVeritas' operating environment.  In particular, whilst the
company's seismic equipment business has performed well in the
first half of 2010, Moody's notes that there currently appears to
be little sign of pricing recovery in the offshore seismic market
due to the combination of reduced or delayed investments in the
aftermath of the Gulf of Mexico oil spill and ongoing over-
capacity.  This is evidenced by the company's flat backlog of
US$1.5 billion as at July 1, 2010.  In addition, the potential
growth (up to 20%) in the number of vessels entering the market
over the next two years, despite expected cancellations, could put
further downward pressure on the industry's margins.

Moody's had previously indicated that it would expect CGGVeritas
to generate neutral free-cash flows and demonstrate leverage
(expressed as net debt to EBITDA less investments in multi-client
studies) not materially and sustainably above 3x to support the
current Ba2 corporate family rating.  The negative outlook
reflects that in the six months ended 30 June 2010, the company
generated negative free-cash flows (in the vicinity of minus
US$120 million); as well as Moody's expectation that leverage for
the full-year 2010 is likely to be close to 4x driven by the
severe deterioration in cash generation stemming from the industry
downturn, albeit mitigated by a containment of the group's capital
expenditure program.

Therefore, ongoing over-capacity in offshore seismic exerting
additional downward pressure on CGGVeritas's margins and delaying
sustainably any market recovery, and translating into a through-
the-cycle leverage materially above 3x, would likely result in a
ratings downgrade.  Conversely, the rating outlook could be
stabilized if the company generates at least neutral free-cash
flows and credit metrics recover in line with the guidance above.

The outlook on these ratings was changed:

  -- Ba2 corporate family rating of CGGVeritas

  -- Ba1 ratings on the senior secured credit facilities of
     CGGVeritas Services Inc.

  -- Ba1 rating on the US$140 million senior secured credit
     facility of CGGVeritas

  -- Ba3 rating on the US$530 million senior notes due 2015 of

  -- Ba3 rating on the US$350 million senior notes due 2016 of

  -- Ba3 rating on the US$400 million senior notes due 2017 of

Moody's last rating action on CGGVeritas was on June 1, 2009, when
the rating agency affirmed all the ratings of the group and
assigned a (P)Ba3 rating to the company's new senior unsecured
notes due 2016.

Compagnie Generale de Geophysique-Veritas, headquartered in Paris,
France, is a leading global seismic services provider and
manufacturer of seismic equipment.  In 2009, it reported revenues
of EUR2.2 billion.


STABILITY CMBS: Moody's Affirms Rating on Class E Notes at 'Ba3'
Moody's Investors Service has affirmed the rating of the Senior
CDS and Classes A+, A, B, C, D and E of CMBS Notes issued by
Stability CMBS 2007-1 GmbH (amounts reflect initial outstandings):

  -- EUR726,800,000 senior credit default swap, Affirmed at Aaa
     (sf); previously on May 22, 2007 assigned Aaa (sf)

  -- EUR500,000 Class A+ Floating Rate Credit Linked Notes due May
     2022, Affirmed at Aaa (sf); previously on May 22, 2007
     assigned Aaa (sf)

  -- EUR31,800,000 Class A Floating Rate Credit Linked Notes due
     May 2022, Affirmed at Aaa (sf); previously on May 22, 2007
     assigned Aaa (sf)

  -- EUR46,400,000 Class B Floating Rate Credit Linked Notes due
     May 2022, Affirmed at Aa2 (sf); previously on May 22, 2007
     assigned Aa2 (sf)

  -- EUR30,500,000 Class C Floating Rate Credit Linked Notes due
     May 2022, Affirmed at A2 (sf); previously on May 22, 2007
     assigned A2 (sf)

  -- EUR30,400,000 Class D Floating Rate Credit Linked Notes due
     May 2022, Affirmed at Baa2 (sf); previously on May 22, 2007
     assigned Baa2 (sf)

  -- EUR28,200,000 Class E Floating Rate Credit Linked Notes due
     May 2022, Affirmed at Ba3 (sf); previously on May 22, 2007
     assigned Ba3 (sf)

Moody's does not rate the Class F of Notes issued by Stability
CMBS 2007-1 GmbH.

1) Transaction Overview

Stability CMBS 2007-1 GmbH closed in 2007 and represents the
synthetic securitization of initially 218 commercial mortgage
loans granted to 91 distinct borrower groups and secured on
aggregate by 119 properties located in Europe.  The loans were
originated by IKB Deutsche Industriebank Aktiengesellschaft in the
course of its ordinary commercial mortgage loan activity, and are
serviced by IKB.  At closing of the transaction, the portfolio was
replenishable up to a maximum amount of EUR300 million in
accordance with certain criteria.  However, following a
replenishment termination event in November 2009, the protection
buyer lost its right to replenish the portfolio.  Since closing of
the transaction, the reference portfolio has reduced from
EUR909 million to EUR770 million as per April 2010, for 189 claims
to 96 distinct borrower groups .  The portfolio's concentration
has slightly increased as shown in a current Herfindahl Index of
25 compared to 32 at closing.  The main property type remains
office building, at 59% of the portfolio compared to 53% at
closing, followed by mixed use and retail properties.  The asset
location remains predominantly Germany with 90% of the pool (the
same level as at closing) with the remaining being almost equally
distributed across Austria, the UK, Luxembourg, the Netherlands
and Switzerland.

The structure is sponsored by KfW, which provides credit
protection to IKB for the reference portfolio.  KfW in turn hedges
its exposure through a senior credit default swap and the issuance
of certificates of indebtedness to the issuer, Stability CMBS
2007-1 GmbH.  The issuer financed the acquisition of the
certificates through the issuance of credit-linked notes to
investors.  The legal final maturity of the transaction is 2022.

No credit event nor loss claim were reported since closing, and as
per the most recent investor report, there is no current

2) Rating Rationale

In the course of its annual review of the transaction, Moody's
obtained updated information about each of the loans and re-
assessed the performance of the securitized portfolio and its
future performance expectations.  Moody's estimated the magnitude
of the increase in the term and refinancing default probability
for each loan as well as the realized and further expected value
decline of the underlying property collateral.  Moody's focused
its analysis more particularly on the four largest loans in the
portfolio.  Furthermore, potential operational risks of the
transaction were analyzed in light of the current credit situation
of the loan originator and servicer, IKB.

The affirmations were prompted by several counter-balancing
factors, and in particular these negative credit aspects:

  (i) The negative performance of the German, British and Dutch
      commercial property markets since closing of the transaction
      in 2007 and Moody's opinion about the future performance of
      these markets; and

(ii) The increased refinancing risk of the securitized loans, in
      particular for the largest loans in the pool.  More than 50%
      of the portfolio in value is due for refinancing between now
      and end 2013, and Moody's expects the real estate lending
      market to remain under pressure for the next years.

In Moody's view, the above negative credit factors are mitigated

  (i) The very low levels of arrears and delinquency historically,
      and the absence of credit events to date;

(ii) The relatively moderate LTV levels of most of the borrower
      groups, as currently estimated by Moody's.  Moody's
      estimates in this case that refinancing is more realistic
      than in comparably more leveraged transactions.  The current
      Moody's estimated weighted average LTV of the loans is 82%,
      by comparison to 62% for the underwriter's LTV.  The
      underwriter's weighted average LTV is based on property
      values at closing or replenishment.  Moody's LTV accounts
      for the Moody's estimated fall in commercial real estate
      values in the German and other continental European markets
      since closing and replenishment.  Moody's also took into
      account the vacant possession value of single-tenanted
      properties when modeling recovery values; and

(iii) The fact that despite some replenishment, the capital
      structure has deleveraged through scheduled repayment and
      prepayment since closing.  The purely sequential nature of
      the transaction has lead to increased credit enhancement for
      the senior CDS and all the classes of Notes rated by

3) Rating outlook

Given that replenishment is no longer possible, continuing loan
repayments and prepayments will further increase the credit
enhancement available to all rated classes of Notes.  In case of a
continued solid performance of the loans, this may generate
upgrade pressure on the ratings.

WESTLB AG: Wind-Down Scheme Contributed to EUR334MM Trading Loss
James Wilson at The Financial Times reports that WestLB on
Thursday counted the short-term cost of its restructuring efforts
in the wake of the financial crisis as it revealed a fall in
first-half profits.

The lender, once the most globally ambitious of Germany's
Landesbanken but now propped up by Berlin, is the only one of the
country's banks to have parceled off unwanted assets into a "bad
bank" to be wound down, the FT notes.  The FT says the process,
which has still to be fully approved by European competition
authorities, contributed to a EUR334 million (US$429 million)
trading loss at WestLB in the first six months.

WestLB, as cited by the FT, said it had benefited from
transferring about EUR77 billion of assets and liabilities from
its balance sheet into a new vehicle, Erste Abwicklungsanstalt or
EAA, in April.

According to the FT, WestLB's transfers to the bad bank hit its
income, partly because it had to acknowledge losses on some of the
assets spun off such as government bonds.  Group pre-tax profit to
the end of June fell from EUR302 million to EUR114 million, the FT
discloses.  A pro forma EUR190 million loss from the unbundled
assets, as well as from subsidiaries earmarked for sale, was
offset by a EUR304 million pre-tax profits at the units that will
be WestLB's remaining "core" bank, the FT notes.  However, pro
forma profits at the core bank were down 19% year on year, while
group net income for the six months fell from EUR224 million to
EUR67 million, the FT discloses.

                           About WestLB

Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- provides financial advisory, lending,
structured finance, project finance, capital markets and private
equity products, asset management, transaction services and real
estate finance to institutions.  In the United States, certain
securities, trading, brokerage and advisory services are provided
by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a
registered broker-dealer and member of the NASD and SIPC.
WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW
(64.7%) and two regional associations (35.3%).

                           *     *     *

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


BAEV ZRT: Creditors File HUF1.65 Billion in Claims
Budapest Business Journal, citing daily Napi Gazdasag, reports
that nearly 80 creditors have filed claims worth a combined
HUF1.65 billion against bankrupt construction company BAEV Zrt.

According to BBJ, BAEV has a book value of HUF1.2 billion and owns
thirty -- mostly mortgaged -- properties, the value of which is
currently being assessed.

The company's revenue dropped to HUF 1.2 billion last year from
HUF2 billion in 2007, while losses hit HUF 100 billion in 2009,
BBJ discloses.

BAEV Zrt is based Bekescsaba, southeast Hungary.


ARNOTTS HOLDINGS: Three New Directors Appointed to Board
Ciaran Hancock at The Irish Times reports that Anglo Irish Bank
and Ulster Bank have appointed three new directors to the board of
Arnotts, where they jointly took control last week in a debt-
restructuring deal.

According to The Irish Times, Richard Nesbitt, who has had a long
association with the 167-year old retailer, has been replaced as
chairman by Mark Schwartz, the chief executive of US asset
management company Palladin Capital Group.  Mr. Schwartz has been
advising the banks about Arnotts in recent months, The Irish Times
notes.  The Irish Times says Mr. Nesbitt will remain as a non-
executive director.

The Irish Times relates Tobias Nanda, also of Palladin, and
Stephen Haughey, a former chairman of AL Goodbody Solicitors, were
also appointed as non-executive directors.  Keith Edelman, a
former director with football club Arsenal, and Michael Nesbitt,
brother of Richard, have resigned from the board, the Irish Times

Mr. Schwartz, as cited by The Irish Times, said there would now be
a full review of senior executive management at Arnotts.

It is understood that group chief executive Brian Kearney will
leave the business, The Irish Times states.

As reported by the Troubled Company Reporter-Europe on August 11,
2010, the European Commission approved a proposal from Anglo Irish
Bank and Ulster Bank to take control jointly of Arnotts in a debt
restructuring deal.  The Irish Times disclosed Arnotts owes the
two banks more than EUR300 million.

Established in 1843, Arnotts Holdings Ltd. is the largest
department store in the country, with a selling area of more than
27,000sq m.  It employs some 950 people and has been an anchor for
other stores on Dublin's Henry Street for over 150 years,
according to The Irish Times.

ARNOTTS HOLDINGS: Mulls Stock Market Flotation, New Chair Says
John Mulligan at Irish Independent reports that Mark Schwartz, the
new chairman of Arnotts, said that a future return to the stock
market for the department store is one of the options that could
be pursued as an exit strategy for Anglo Irish Bank and Ulster

Arnotts made its original debut as a listed stock back in 1875,
just over a decade after it was founded, Irish Independent
discloses.  It was delisted in July 2003 after a takeover battle
which was prompted by a move made by financier Peter O'Grady
Walshe but was eventually won by a vehicle headed by Richard
Nesbitt, Irish Independent relates.

Irish Independent says a flotation of the retail business would
mark its second time on the stock market.

Irish Independent notes Mr. Schwartz has said that a stock market
flotation, bringing on board new investors or a refinancing are
all options that could be considered at a later stage.

Mr. Schwartz, as cited by Irish Independent, said that the two
banks wanted him to focus on running the core retail business in
the short to medium-term and that Arnotts does not require any
additional investment at present.

He added that a new working capital facility negotiated with Anglo
and Royal Bank of Scotland-owned Ulster Bank would enable him to
bring new brands to Arnotts and also boost capital expenditure at
the retailer, Irish Independent discloses.

As reported by the Troubled Company Reporter-Europe on August 11,
2010, the European Commission approved a proposal from Anglo Irish
Bank and Ulster Bank to take control jointly of Arnotts in a debt
restructuring deal.  The Irish Times disclosed Arnotts owes the
two banks more than EUR300 million.

Established in 1843, Arnotts Holdings Ltd. is the largest
department store in the country, with a selling area of more than
27,000sq m.  It employs some 950 people and has been an anchor for
other stores on Dublin's Henry Street for over 150 years,
according to The Irish Times.

AVOCA CLO: S&P Downgrades Credit Rating on Class D Notes to CCC+
Standard & Poor's Ratings Services lowered its credit rating on
Avoca CLO IV PLC's class D notes.  At the same time, S&P raised
its credit rating on the class R combination notes and affirmed
its ratings on all other classes of notes.

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

The upgrade of the class R combination notes is due to the rated
par amount being adequately covered by its class C1 component.

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

                           Ratings List

                         Avoca CLO IV PLC
          EUR494 Million Floating- and Fixed-Rate Notes

                          Rating Lowered

                Class        To              From
                -----        --              ----
                D            CCC+            B-

                           Rating Raised

                Class        To              From
                -----        --              ----
                R Combo      BB+             BB

                         Ratings Affirmed

                       Class        Rating
                       -----        ------
                       A1a          AA+
                       A1b          AA
                       A2           AA
                       B            A-
                       C1           BB+
                       C2           BB+
                       E            CCC-
                       N            CCC-
                       O            CCC-
                       P            CCC-
                       Q            B

BANK OF IRELAND: Says Can Operate Without Further Gov't Guarantee
Laura Noonan at Irish Independent reports that Bank of Ireland
believes it can operate without a further government guarantee and
has refused to join growing calls for the support to be extended
beyond the end of year.

According to Irish Independent, chief executive Richie Boucher on
Wednesday told analysts the bank was actively planning to
"disengage from the guarantee in a prudent fashion".

Irish Independent says market sources are now expecting Bank of
Ireland to carry out limited fundraisings outside the guarantee as
early as autumn.

The original guarantee -- dubbed the Credit Institutions
(Financial Support) Scheme -- is due to expire in September, Irish
Independent notes.  A second scheme, the Eligible Liabilities
Guarantee Scheme (ELG), is set to be phased out between September
and December, Irish Independent states.

Irish Independent relates Mr. Boucher on Wednesday hinted that
Bank of Ireland, which raised EUR2.9 billion from investors
earlier in the year, will test the market for so-called
"unguaranteed" investment before the supports expire.

"We will be looking at a range of programs, guaranteed issuances,
covered bonds, secured and unsecured [bonds] across a range of
geographies," Mr. Boucher told analysts, according to Irish

Mr. Boucher refused be drawn on whether the bank would continue to
make some use of the guarantee should it be extended, Irish
Independent notes.


As reported by the Troubled Company Reporter-Europe on August 13,
2010, The Financial Times said pre-tax profits at Bank of Ireland
fell 60% in the first half of the year after it racked up almost
EUR1 billion (GBP832 million) of losses relating to the tattered
portfolio of commercial property loans that it is selling to the
Irish government.  The FT disclosed the bank is undergoing a
restructuring after an overzealous lending spree left it nursing
bad debts when the Irish property market collapsed, the FT
relates.  It is now repairing its balance sheet, largely by
transferring about EUR12 billion of property loans to the National
Asset Management Agency, the Irish government-run bank, at a
discount, the FT noted.  Bank of Ireland, which is 36% state-
owned, incurred a EUR466 million loss on the sale of the first
tranche of EUR2.2 billion of loans, which were shifted to Nama
this year, according to the FT.  It took another charge of the
same amount on the remaining batch of loans it has earmarked for
sale, the FT stated.  The FT said these high loan impairments
triggered an underlying loss of EUR1.25 billion in the first six
months -- almost double the EUR668 million loss the bank incurred
a year earlier.  All its core businesses except its life assurance
division suffered a fall in underlying profit, the FT noted.
Including a number of one-off items such as gains on pension and
debt restructuring, the bank reported a EUR116 million pre-tax
profit, down from EUR273 million in the first half of 2009, the FT

Headquartered in Dublin, Bank of Ireland -- provides a range of banking and
other financial services.  These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor, trustee,
life assurance and pension and investment fund management, fund
administration and custodial services and financial advisory
services, including mergers and acquisitions and underwriting.
The Company organizes its businesses into Retail Republic of
Ireland, Bank of Ireland Life, Capital Markets, UK Financial
Services and Group Centre.  It has operations throughout Ireland,
the United Kingdom, Europe and the United States.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on July 23,
2010, Moody's Investors Service affirmed Bank of Ireland's long-
term bank deposit and senior debt ratings.  These were 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.  BoI's bank financial
strength rating is D, on review for possible upgrade and this was
also unaffected by the rating action.

CASHEL MOTORS: In Liquidation; 19 Jobs Affected
Ailish O'Hora at Irish Independent reports that Cashel Motors has
gone into liquidation after the economic downturn hit sales.
According to the report, the closure of the company will result in
the loss of 19 jobs.  It is understood the liquidation was
prompted by the Revenue Commissioners, which is owed VAT by Cashel
Motors, the report notes.

The report relates Aiden Murphy, from accountants Horwath Bastow
Charleton, has been appointed liquidator to the firm and he will
manage the winding up of the company by selling off its assets.

The latest available accounts for 2008 showed that Cashel Motors
warned two years ago that the company may no longer be able to
survive, the report states.

According to the report, notes to the accounts stated: "The
economic environment is challenging, the company has marked down
the value of used car stocks on hand at year end and has reported
a loss for the year."

In addition, Cashel Motors' debts exceeded its assets by just
under EUR1 million that year, the report notes.  The report says
the accounts reveal that a number of banks had also taken charges
on the assets of the firm.

Cashel Motors owed creditors EUR6 million at the end of 2008, but
the company is understood to have paid off some of its debts since
then, the report states.

Cashel Motors is a Tipperary-based Citroen and Volvo dealership.

CELTIC RESIDENTIAL: Moody's Lowers Rating on Class C Notes to B3
Moody's Investors Service announced that it has downgraded the
ratings of the class A3, B and C notes issued by Celtic
Residential Irish Mortgage Securitisation No. 12 Limited.

Last rating action date for Celtic 12 was July 23, 2010, when the
Class A3 and Class B were placed under review for possible
downgrade given deterioration in credit trends, most specifically
90d+ arrears.  The Class C notes in Celtic 12 were put on review
for possible downgrade in July 2009.

The rating action concludes the review and takes into
consideration the worse-than-expected performance of the
collateral and the weakened macro-economic environment in Ireland,
including the expected increase in unemployment rates projected
for 2010 as well as further deterioration of the Irish housing

            Pool Composition and Portfolio Performance

Celtic 12 closed in June 2007.  The transaction is backed by a
portfolio of first-ranking mortgage loans originated by First
Active, now Ulster Bank (A2/P1), and secured on residential
properties located in Ireland, for an overall balance of
EUR1.95 billion at closing.  The portfolio has a weighted average
seasoning exceeding 60 months and a weighted average non-indexed
loan-to-value of currently 66%.  Irish house prices have fallen by
more than 35% below the peak reached in late 2006.  As result,
indexed LTV on the pool has significantly increased, with 45% of
the portfolio currently in negative equity.  The portfolio has an
indexed weighted average LTV of currently 88.2%.

Celtic 12 is performing outside of Moody's expectations as of
closing.  The collateral performance has deteriorated rapidly over
the past 12 months.  The share of loans more than 90 days in
arrears more than doubled since June 2009, from 3.61% of current
pool balance in June 2009 to 8.28% as at June 2010.  The 360d+
delinquent loans have risen from 1.04% of the outstanding balance
as of July 2009 to 2.4% as of June 2010.  Despite the rapid
deterioration in total delinquencies, Celtic 12 has experienced
only 2 cases of repossession to-date.  The negligible level of
repossessions to-date in the Irish mortgage market is associated
to the lengthy foreclosure process in Ireland as well as to the
moratorium on legal proceedings introduced by the Irish government
in February 2009.

The rating action takes into consideration the weakening of the
Irish economic conditions and in particular the effects that the
anticipated tightening of fiscal policy, on the back of government
austerity, is likely to have on the recovery in the Irish labour
market and on the household finances.  Moody's does not expect the
arrears level in this transaction to stabilize before 2011.

             Revised Lifetime Losses and Milan Aaa CE

Moody's has reassessed its lifetime loss expectation for Celtic 12
to account for the collateral performance to date as well as the
current macroeconomic environment in Ireland.  On the basis of the
rapid deterioration in 360d+ arrears in the transaction, Moody's
have updated the portfolio expected loss assumption to 2.4% of
original balance, up from 0.8% at closing.

As part of its analysis, Moody's has also assessed loan-by-loan
information for the outstanding portfolio to determine the credit
support consistent with target rating levels and the volatility of
the distribution of future losses.  For this review, "Moody's
MILAN Methodology for Rating Irish RMBS" was used.  As a result,
Moody's has increased its MILAN Aaa credit enhancement (MILAN Aaa
CE) assumptions from 8.5% to 16% for Celtic 12.  The loss
expectation and the Milan Aaa CE are the two key parameters used
by Moody's to calibrate its loss distribution curve, which is one
of the core inputs in the cash-flow model it uses to rate RMBS
transactions.  Current credit enhancement under Class A notes
(including subordination and reserve fund) is 10.8%.  Moody's
expects the notes amortization to remain sequential for the
remaining life of the deal, with class A2 to be repaid in priority
to class A3.  Therefore Moody's maintains Aaa (sf) rating for the
Class A2.

                          Deal Structure

Amortization of the notes: The senior notes and subordinated notes
have been amortizing sequentially since closing.  The notes
amortization is to switch to sequential pay from June 2010 if
class A credit enhancement provided by the B and C notes doubles
the level at closing and certain conditions are met, such as:
1) the outstanding balance of the loans more than 90d+ in arrears
remains below 2.7% of current pool balance, 2) there is no unpaid
principal deficiency remaining after the revenue fund allocation,
3) and the reserve fund is at target level and 4) cumulative
losses are less than 1% of outstanding pool balance.  Moody's
notes that the arrears trigger is currently in breach, with 90d+
arrears representing currently 8.28% of current pool balance, well
over the 2.7% 90d+ arrears trigger level.  Moody's expects that
the notes will continue to amortize sequentially until final
maturity of the transaction.

Reserve Fund: The reserve fund was funded at closing to
EUR19.5 million.  It is non-amortizing and subject to an arrears
trigger.  The reserve fund is required to build up through the
application of excess spread until it reaches an amount equal to 1
% of the original balance of the notes plus 15% of the current
outstanding balance of loans that are more than 12 months in
arrears and 30% of the current outstanding balance of loans that
are more than 24 months in arrears.  The reserve fund has build up
to currently EUR26 million, or 1.8% of current pool balance.

Hedging agreements: The transaction benefits from interest rate
swaps provided by Royal Bank of Scotland (Aa3/P-1).

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  Moody's ratings address
only the credit risks associated with the transactions.  Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

                 List of Detailed Rating Actions

Issuer: Celtic Residential Irish Mortgage Securitisation No.12

  -- EUR1010.685 million A3 Notes, Downgraded to Aa2 (sf);
     previously on July 23, 2010 Aaa (sf) Placed Under Review for
     Possible Downgrade

  -- EUR39 million B Notes, Downgraded to Baa1 (sf); previously on
     July 23, 2010 Aa3 (sf) Placed Under Review for Possible

  -- EUR87.75 million C Notes, Downgraded to B3 (sf); previously
     on July 22, 2009 Baa2 (sf) Placed Under Review for Possible

ELAN FINANCE: Moody's Assigns 'B2' Rating on New Senior Notes
Moody's Investors Service assigned a rating of B2 to the new
senior unsecured note issuance of Elan Finance plc, a subsidiary
of Elan Corporation plc.  The rating outlook remains positive.

The US$200 million note offering represents a change in the deal
structure from the initial offering in which the bond would be an
add-on to Elan's existing US$625 million senior unsecured notes
due 2016.  While the new notes are expected to have substantially
the same terms as the existing 2016 notes, the new notes will be
issued under a separate indenture.  Proceeds of the note offering
are expected to partially fund the redemption of Elan's US$300
million floating rate notes due in 2011.  In addition, Elan has
also announced plans to repurchase up to US$190 million of its
senior unsecured notes due in 2013.

Elan's B2 rating reflects the company's limited scale, high
product concentration risk, modest EBITDA and minimal free cash
flow, offset by strong and rising sales of Tysabri.  The positive
outlook reflects the potential for an upgrade over time if Elan
continues its recent track record of improving operating
performance, driven by Tysabri sales and expense reductions.  An
upgrade could occur with further improvements in free cash flow
and EBITDA, or if Elan continues to deleverage its balance sheet.

Rating assigned:

Elan Finance plc

* B2 [LGD4, 66%] fixed rate senior notes of US$200 million due
  (guaranteed by Elan Corporation, plc and subsidiaries)

Moody's last rating action was the assignment of a B2 rating to
Elan's senior note offering on September 29, 2009.

Elan Corporation, plc is a specialty biopharmaceutical company
headquartered in Dublin Ireland, with areas of expertise in
neurological and autoimmune disease, and drug delivery technology.
For the first six months of 2010 the company reported
approximately US$579 million of total revenue.

NEW BOND: Moody's Junks Rating on Class X Floating Rate Notes
Moody's Investors Service took this rating action on notes issued
by New Bond Street CDO 2 Limited, a hybrid CDO backed by a
portfolio of structured finance securities.

  -- US$1,750,000 Class X Floating Rate Notes due 2013 Notes
     (currently US$ 1,333,325.00 outstanding), Downgraded to C
     (sf); previously on Aug 21, 2009 Downgraded to B3 (sf)

The transaction experienced an event of default on August 17, 2009
and the liquidation of the collateral was chosen as a post-event-
of-default remedy.  Moody's was notified by the trustee that as a
result of the liquidation, all classes of notes suffered a 100%
loss.  The rating action taken reflects the final liquidation
distribution and a change in the severity of loss associated with
the downgraded notes.

Moody's will subsequently withdraw the ratings of all classes of
notes due to the liquidation of collateral held by the Issuer.


CREDICO FUNDING: S&P Downgrades Rating on Class E Notes to 'CCC'
Standard & Poor's Ratings Services lowered its credit ratings on
Credico Funding 3 S.r.l.'s class A1, A2, B, C, D, and E notes.  At
the same time, S&P removed the ratings from CreditWatch negative
where S&P placed them on Sept. 17, 2009 as a consequence of S&P's
updated criteria for corporate collateralized debt obligations.

The rating actions follow the application of S&P's updated
criteria for corporate CDOs, as well as its assessment of the
credit deterioration that S&P has observed in the transaction's

Credico Funding 3 is a cash flow CDO backed by a static portfolio
of bonds issued by Banche di Credito Cooperativo, which are part
of Italy-based bank ICCREA Banca SpA's network.  The transaction
closed in June 2007.

S&P has adjusted its credit assessment of the BCCs within the
collateral portfolio according to its overall review of the
cooperative banking sector in Italy.

The figures below compare the current credit profile of the
portfolio -- using ratings on the underlying bonds that S&P
considers appropriate in S&P's analysis -- with the credit profile
of the portfolio when the transaction closed in June 2007.

                            Portfolio %
         Rating/credit      June 2007         Portfolio %
         estimate           (closing)         current
         -------------      -----------       -----------
         BBB                36.08             0.00
         BBB-                5.79             0.00
         BB+                 0.00             0.00
         BB                 47.79            47.93
         BB-                 0.00             0.00
         B+                  0.00             0.00
         B                  10.34            48.79
         B-                  0.00             0.00
         CCC+                0.00             0.00
         CCC                 0.00             3.27
         CCC-                0.00             0.00

S&P notes in particular that whereas 41.87% of the portfolio was
investment-grade (rated 'BBB-' or higher) at closing, the ratings
on all assets are now speculative-grade.

Taking into account the negative rating migration S&P has observed
in the portfolio and using revised assumptions in S&P's updated
corporate CDO criteria, S&P's analysis indicates that the credit
enhancement on all classes of notes is in its opinion no longer
consistent with the original ratings.  S&P has therefore lowered
its rating on each class of notes.

                           Ratings List

                     Credico Funding 3 S.r.l.
        EUR1,223 Million Asset-Backed Floating Rate Notes

      Ratings Lowered and Removed From CreditWatch Negative

             Class        To            From
             -----        --            ----
             A1           A             AAA/Watch Neg
             A2           BBB+          AAA/Watch Neg
             B            BBB-          AA/Watch Neg
             C            BB-           A/Watch Neg
             D            B-            BBB-/Watch Neg
             E            CCC           BB+/Watch Neg

TIRRENIA DI NAVIGAZIONE: Declared Insolvent; Union Opposes Breakup
Lorenzo Totaro at Bloomberg News reports that a Rome judge on
Thursday declared Tirrenia di Navigazione SpA insolvent, the first
step toward placing the company under state administration.

According to Bloomberg, Italy failed this month to sell Tirrenia
and on Aug. 5 approved "emergency financial provisions" to help
guarantee ferry services.  The sale was pulled after the
government did not reach a final agreement with bidder
Mediterranea Holding, Bloomberg notes.

Bloomberg relates Rome newspaper la Repubblica, citing Nicola
Coccia, a Mediterranea shareholder, reported Thursday Mediterranea
may team up with other operators such as Moby SpA and Grandi Navi
Veloci SpA to make a new offer for Tirrenia.

Bloomerg notes Italian labor union Uil Trasporti said it may
appeal the ruling and will fight against the state-owned company's

"We fear that after the insolvency, Tirrenia will be broken up
into many companies, hurting its service and workforce," Bloomberg
quoted Giuseppe Caronia, general secretary of the Uil Trasporti
union, as saying.  "We have nothing against the company's sale in
one piece to investors willing to keep the jobs and a state

Mr. Caronia, as cited by Bloomberg, said the union has called a
strike on Aug. 30-31 to protest the company's possible breakup.
Mediterranea was ready to buy Tirrenia for EUR25 million (US$32
million) and assume debt of as much as EUR550 million, Bloomberg
says, citing Mr. Caronia.  Bloomberg notes, newswire Radiocor,
quoting a Rome judge, reported Tirrenia's debts total more than
EUR600 million.

Separately, Bloomberg News' Elisa Martinuzzi and Tommaso Ebhardt
report that Italy won't break up Tirrenia as it seeks a buyer for
the insolvent state-owned ferry operator.

According to Bloomberg, Italian Transport Minister Altero
Matteoli, said in an e-mailed statement late Thursday that neither
the government nor the company's administrator plan to separate
the company's businesses.

Tirrenia, founded in 1936, runs passenger and cargo ships linking
the mainland with islands Sardinia, Sicily and Corsica as well as


* LATVIA: IMF Calls for Restructuring of Two State-Owned Banks
Aaron Eglitis at Bloomberg News reports that the International
Monetary Fund called on Latvia's government to restructure its two
state-owned banks.

"Given high levels of private sector debt, further steps would
also be needed to facilitate market-based debt restructuring,
streamline insolvency and foreclosure procedures, reduce costs and
address tax disincentives," the report quoted Washington-based
fund as saying in an Article IV report on the Baltic country
released by e-mail Thursday.


* Moody's Assigns 'B3' Issuer Rating on Republic of Moldova
Moody's Investors Service has assigned a B3 long-term issuer
rating and a Not-Prime short-term issuer rating to the local and
foreign-currency debt of the Republic of Moldova.  The rating
outlook is stable.

Moody's decision to assign the B3 rating to the Moldovan
government is based on:

(1) the narrowness of the country's economic base, with
    substantial vulnerabilities due to the role of remittances and
    the lack of economic and export diversification;

(2) weaknesses in fiscal transparency and accountability which the
    government -- together with the IMF -- has started to address,
    although some political uncertainties about the continuity of
    the process remain; and

(3) relatively high economic vulnerability to external capital
    flows and exchange rate fluctuations, due in part to the high
    level of dollarization within the country's banking system.

                         Rating Rationale

"The B3 rating reflects Moody's assessment that Moldova's economic
resiliency remains very low, despite having posted robust GDP
growth before the global crisis," said Alexander Kockerbeck, a
Vice President-Senior Credit Officer in Moody's Sovereign Risk
Group.  "Going forward, growth is expected to be more subdued as
workers' remittances and foreign direct investment have
downshifted.  On the other hand, lower capital inflows should
reduce future macroeconomic volatility, which often follows
periods of rapid credit growth."

Remittances from Moldovans working abroad can account for upwards
of 30% of GDP in any year and are subject to sharp fluctuations.
"The lack of diversification of the economic base and of sources
of foreign exchange earnings leaves the economy vulnerable to
domestic and external shocks," said Mr. Kockerbeck.

Institutional capacity is developing, although from a very low
level.  "The government has committed to significantly improve
fiscal transparency, accountability and economic policy
implementation," noted Mr. Kockerbeck.  Moody's says that serious
efforts are also being made by the new four-party coalition
government to improve the country's investment climate and to push
the economy's European integration.  However, political
uncertainty surrounding upcoming general elections may jeopardize
continuity in the economic, institutional and fiscal reform

Moldova has made good progress in recent years in improving key
general government debt indicators, which were on a clear downward
trend until the outbreak of the global crisis.  However the
country's external debt has continued to increase since 2005,
reaching 107% of current account receipts at the end of 2009.
Moreover, the relatively high (43%) dollarization of deposits in
the domestic banking system and low external liquidity would
exacerbate the economy's vulnerabilities in response to external
shocks such as currency depreciation.

In conjunction with the sovereign debt ratings, Moody's has also
assigned a foreign currency bond ceiling of B2 and a foreign
currency bank deposit ceiling of Caa1 to Moldova.  The foreign
currency bond ceiling reflects the risk the government would
impose a moratorium on foreign currency transfer payments by non-
governmental entities; the foreign currency bank deposit ceiling
reflects the risk the government would impose a freeze on foreign
currency bank deposits to conserve scarce foreign currency
resources during a crisis.

Additionally, Moldova was assigned long-term local currency bond
and bank deposit ceilings at Ba2.  These ceilings reflect the
broader financial, political and legal country risks faced by
locally-funded or -domiciled credit transactions.  According to
Moody's sovereign rating methodology, a government's own local
currency rating is not a constraint on the local currency ratings
of other entities domiciled in that country.  The long-term local
currency bond ceilings cap the ratings of non-governmental
entities domiciled in Moldova; the long-term local currency
deposit ceiling reflects the ability of the central bank to
provide liquidity to the banking system and therefore is close to
the long-term local currency bond ceiling.

                     Outlook for the Ratings

The outlook for Moldova's government ratings and country ceilings
is stable.  Moody's expects that the economy will recover in 2010
and 2011 from a sharp setback during the global crisis.  Moldovan
authorities -- with the help of the IMF -- have ambitious plans to
put the economic, institutional and fiscal framework in a solid
shape.  However, substantial improvements in economic resiliency,
government financial strength, and the economy's susceptibility to
event risk are not likely in the near term, since the measures and
reforms necessary for doing so will take time to be implemented
and to yield the desired results.  On top of this, for the next 6
to 12 months, uncertainties remain concerning the rhythm and
sustainability of the reform process, given political risks.

                   What Could Change the Rating

Diversification of the economy and particularly sources of foreign
exchange earnings to reduce the dominance of remittances would
help boost economic strength and lower the economy's
susceptibility to domestic and external shocks, and would be
ratings positive.  In addition, upward rating pressures would
derive from further progress on implementation of structural
reforms to streamline the public sector and improve the business
environment, such as through measures to speed business licensing
and registration, stronger bankruptcy procedures and legislation
to increase competition.

Moldova's rating could come under downward pressure should any
shock, whether related to adverse weather effects on the important
agricultural sector, a structural decline in workers' remittance
inflows, and/or a lack of privatization receipts or multilateral
funding, create fresh difficulties for its debt servicing

The last rating action on the government of Moldova was
implemented in October 2009, when Moody's withdrew all the


MESDAG BV: Fitch Affirms 'CCC' Ratings on Two Classes of Notes
Fitch Ratings has affirmed Mesdag (Delta) B.V's five note classes:

  -- EUR381.5m class A (XS0307565928): affirmed at 'A'; Outlook

  -- EUR45.1m class B (XS0307574599): affirmed at 'BBB-'; Outlook

  -- EUR51.3m class C (XS0307576701): affirmed at 'B'; Outlook

  -- EUR61.6m class D (XS0307578749): affirmed at 'CCC'; assigned
     a Recovery Rating of 'RR3'

  -- EUR47.1m class E (XS0307580307 affirmed at 'CCC'; assigned a
     Recovery Rating of 'RR4'

The affirmation of all note classes reflects the broadly stable
performance of the transaction over the past year.  However, the
Negative Outlooks reflect continued uncertainty in the Dutch non-
prime commercial property sector.

The whole loan has an interest coverage ratio of 1.4x and an exit
debt yield (EDY based on current passing rent) of 6.6%.  Both
measures have remained broadly stable over the past year and are
slightly below their closing levels.

Excluding property disposals, a December 2009 portfolio re-
valuation showed a 7.3% market value decline since closing in July
2007.  Fitch has a more conservative assessment of value trends
across Dutch commercial real estate, particularly at the
secondary/tertiary end of the spectrum, which results in a Fitch
A-note loan to value of 124.4% (roughly unchanged from last year)
compared to a reported LTV of 79.5%.  The B-note Fitch LTV stands
at 132.3%.

The loan is secured on a diversified portfolio of 67 properties
(77 at closing) located throughout the Netherlands which are
multi-let to 299 tenants.  Whilst there are some assets located in
good locations within metropolitan cities, the age and poor state
of repair of some of the assets means that considerable capex
would need to be invested in order to be competitive on the open
market.  The vacancy rate has remained broadly static over the
past year at 12%; however, there is significant rollover risk over
the next few years which, assuming weak economic conditions
persist, could lead to an increase in vacancy.

Fitch will continue to monitor the performance of the transaction.


NORSKE SKOGINDUSTRIER: S&P Cuts Corporate Credit Rating to 'B-'
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Norway-based forest product group
Norske Skogindustrier ASA to 'B-' from 'B'.  At the same time, S&P
affirmed the 'B' short-term corporate credit rating.  The outlook
is negative.

"The rating action primarily reflects S&P's view that Norske
Skog's debt maturity profile until 2012 appears increasingly
difficult to manage given its currently available and potential
liquidity resources," said Standard & Poor's credit analyst Jacob

It also reflects the tighter headroom under the group's financial
covenants since the start of 2010.  Furthermore, tough market
conditions in the European newsprint markets in 2010 are limiting
the group's operating cash flow generation.  These factors are
deteriorating the group's liquidity position, in S&P's view.
Consequently, S&P is reassessing its view on Norske Skog's
liquidity profile to "less than adequate" from "adequate".

The ratings continue to reflect S&P's view of Norske Skog's highly
leveraged financial risk profile, including a high probability of
weakening credit measures and a concentration of debt maturities
in 2012.  They also reflect its exposure to the oversupplied,
cyclical, and structurally impaired publication paper industry.
This is partly counterbalanced by good positions in the global
newsprint markets, material debt reduction efforts, and an ability
to meet debt maturities in 2011 with existing resources.  As of
June 30, 2010, Norske Skog's adjusted debt amounted to an
estimated Norwegian krone (NOK) 11.9 billion (about ?1.5 billion).

"The negative outlook reflects S&P's view that there is a risk
that Norske Skog will not be able to meet its debt maturities in
2012 and that headroom under financial covenants could tighten,"
said Mr. Zachrison.


MERKUR D.D.: Creditors Back Restructuring Plan
Slovenska tiskovna agencija reports that Bojan Knuplez, the
chairman of debt-ridden hardware retailer Merkur, presented plans
for the company's restructuring to the six biggest banks creditors
in Ljubljana on Friday.

According to STA, the company said the banks backed the plans.

Merkur d.d. is a Slovenian hardware goods retailer.

VEGRAD D.D.: Is Insolvent; Prepares Financial Overhaul
Boris Cerni at Bloomberg News, citing Finance newspaper, reports
that Vegrad d.d. Chief Executive Officer Hilda Tovsak said that
the company is insolvent.

According to Bloomberg, the Ljubljana-based newspaper said the
company is preparing a financial overhaul that would include the
start of the receivership process.

Slovenska tiskovna agencija reports that Economy Minister Darja
Radic on Friday said that the state would take care of workers
that would lose their jobs at Vegrad.  She believes receivership
is now the most realistic option for the company, and the best for
the workers, STA notes.

Vegrad d.d. is Slovenia's second-largest construction company.

U N I T E D   K I N G D O M

FRESH ITALY: In Administration; Three Sites Put Up for Sale
Martyn Leek at BigHospitality reports that Fresh Italy has been
placed into administration and its three remaining sites placed on
the market.

According to the report, Wilder Coe, the accountancy group, has
been appointed as the administrators and Currell Commercial, the
chartered surveyors, is marketing Fresh Italy's three London
restaurants, all of which are now closed.  These include Goring
Street, with a rent of GBP75,000, King William Street, rent
GBP80,000 and Ludgate Hill, with a rent of GBP105,000, the report

Premium offers are invited for the businesses, the report says.

Fresh Italy is a pasta chain formerly owned by Tom Allchurch.

ISLE OF SHUNA: In Administration Following Cash Flow Problems
BBC News reports that Isle of Shuna has gone into administration.
The report relates PricewaterhouseCoopers has been appointed
administrators, and said it offered an opportunity for an industry
player to step in.

According to the report, joint administrator Graham Frost said:
"The business had encountered cash flow problems in recent months.

"The board have since reluctantly concluded that without
additional working capital and investment this path is no longer
feasible on a standalone basis."

Isle of Shuna is a Shetland-based seafood business.  The company
has been involved in the harvesting, processing and marketing of
fresh mussels.

The company and its subsidiary Demlane Ltd. employ six people in
Shetland and three on the mainland.

ITV PLC: Moody's Upgrades Corporate Family Rating to 'Ba3'
Moody's Investors Service has upgraded to Ba3 from B1 ITV Plc's
corporate family rating, probability-of-default rating and senior
unsecured ratings.  The ratings outlook on all ratings is stable.

"Moody's decision to upgrade ITV's ratings was prompted by:
(i) the cyclical recovery observed in the UK television
advertising market since the beginning of 2010, which led to
ITV's considerably strong operating performance in H1 2010; and
(ii) the likely resulting meaningful improvement in ITV's net
debt/EBITDAR ratio (as calculated by Moody's) for fiscal year
2010, together with continued good free cash flow generation,"
said Gunjan Dixit, Moody's lead analyst for ITV.

Moody's notes that ITV performed particularly strongly in H1 2010,
aided not only by the recovery in the UK television advertising
market but also by the 2010 FIFA World Cup.  While ITV expects
around 15% growth in its net advertising revenues in Q3 2010, the
company will face tougher comparables in Q4 2010, and the
visibility for 2011 and beyond is currently limited.  Therefore,
the stable outlook reflects Moody's expectation that, going
forward, ITV will continue to cautiously manage its discretionary
cash outflows (for add-on acquisitions and dividends, for
example), while making progress towards executing its recently
announced five-year business transformation plan.  In this regard,
the rating agency notes ITV's cautious approach towards dividends
in 2010, given the uncertain economic outlook, and the company's
continued focus on cost control and cash conservation.

ITV's ratings and outlook also factor in: (i) the high operating
leverage of the company; (ii) the significant execution challenges
associated with the successful implementation of ITV's
transformation plan over the medium term; and (iii) the
considerable exposure of ITV's revenues to cyclical TV advertising
spending, which is itself exposed to the potential growth of
advertising on alternative media, such as the internet.

After registering a decline of more than 11% in 2009, NAR for the
whole of the UK (as estimated by ITV) improved by 15% in H1 2010,
with the ITV family having outperformed the market with an 18%
increase in revenues.  The company's reported EBITA also improved
significantly in H1 2010, to GBP165 million from GBP46 million in
H1 2009.  ITV's net debt/EBITDAR (as calculated by Moody's), which
deteriorated to 4.7x at the end of 2009, is likely to register a
significant improvement, helped by company's strong operating
results in H1 2010.  In this regard, Moody's notes that ITV's IAS
19 pension deficit (EUR449 million as of June 30, 2010) remains
significant, and continues to be a material adjustment to the
company's debt metrics.  While ITV's operating results in H1 2010
significantly improved, Moody's notes that ITV reported that: (i)
ITV1's viewing share declined by a further 5% in H1 2010; (ii) video views fell by 14%; and (iii) the revenues from the
ITV Studios segment dropped by 14%, signaling the structural
issues facing ITV.

ITV's recently announced five-year transformation plan aims to re-
shape the company into a "lean" organization whose objective is to
create content that can be executed globally and across multiple
platforms, with the company remaining focused on maximizing its
audience and revenue from its existing free-to-air broadcast
business.  Moody's notes that, over time, ITV aspires to generate
approximately 50% of its revenues from non-television advertising
sources.  As part of its transformation plan, ITV will allocate an
investment fund of GBP75 million over the next three years for
online, content and digital channels.  The company has also
committed to restricting its ITV1 program budget to below
GBP800 million in 2011 and 2012.

While Moody's positively notes the progress that ITV has made over
the past three months towards the development and delivery of its
strategic plan (including making changes to senior management,
creating new operational boards, delivering expected cost
efficiencies, announcing the launch of ITV1+1 in Q1 2011, as well
as recently announcing its agreement to launch ITV2 HD, ITV3 HD
and ITV4 HD as pay channels on Sky), the rating agency believes
that significant execution risks remain.  Furthermore, the timing
and pace of the delivery of the objectives outlined in the
transformation plan remain relatively unclear, as ITV's new senior
management team has, in Moody's view, adopted a relatively
cautious approach and has not currently publicly committed itself
to any quantifiable key performance indicators for the five-year

Positive ratings pressure is likely: (i) with a more stable trend
in NAR development in 2011 and beyond (ii) the company exhibiting
that it can maintain a ratio of net debt/EBITDAR (as calculated by
Moody's) below 4x on a sustained basis, together with meaningful
free cash flow generation (as defined by Moody's -- post capex and
dividends); as well as (iii) ongoing evidence of the successful
implementation of the newly introduced medium-term strategic plan.

On the contrary, renewed negative ratings pressure could develop
with a material deterioration in the UK net advertising spending
and/ or any material acquisition(s), which alone or in combination
with such deterioration lead to a significant worsening in
company's net debt/ EBITDAR (as calculated by Moody's) materially
above 4.5x on a sustained basis.

Moody's considers ITV's liquidity profile to be adequate for its
current needs.  As of June 30, 2010, the company had cash and cash
equivalents of GBP538 million (excluding certain restricted and
unavailable cash amounts totaling GBP148 million).  In addition,
as of the same date, the company had access to a GBP75 million
receivables facility (available to May 2013), which currently
remains fully undrawn and is covenant-free.  Since the beginning
of 2010, ITV has bought back GBP33 million worth of the nominal
amount of the 2011 bonds and GBP42 million worth of the 2015
bonds.  This leaves the company with no material debt maturities
until 2013.  In Moody's view, ITV's cash on hand and internally
generated cash flows should be sufficient to cover the company's
operational needs over the next 12 months, including bolt-on

The last rating action on ITV was implemented on August 7, 2009,
when Moody's downgraded the company's senior unsecured ratings and
its CFR to B1 (from Ba3).

Headquartered in London, United Kingdom, ITV plc is the leading
commercial free-to-air broadcaster and producer of television
programming, and generated turnover of GBP1.88 billion in the year
ended December 31, 2009.

MRS DISTRIBUTION: In Receivership; Scottish Business Sold to JBT
Simon Bain at The Herald reports that MRS Distribution has gone
into receivership.  The report relates KPMG on Aug. 8 said that
group holding companies Inchmuir and York Place had called them in
as administrators, but JBT and another group company Clanna
"continue to trade as normal, free from insolvency proceedings".

According to the report, sister company JBT Distribution had taken
over the entire Scottish operations of MRS, with 96 employees
transferring with immediate effect.

"The solvent sale of the JBT business has safeguarded 240 jobs in
total," the report quoted KPMG as saying.  "A significant part of
MRS's English business has been sold to Bibby Distribution as part
of a separate transaction."

The report notes KPMG said the deal had safeguarded a further 103
jobs, but 43 MRS employees had been made redundant.

MRS Distribution is an independent hauler based at Bathgate in
West Lothian.

SUN 4 U: Ceases Trading; Around 1,200 Holidaymakers Stranded
David Batty at The Guardian reports that Sun4U has collapsed,
leaving around 1,200 holidaymakers abroad facing uncertainty as to
how to return home.

The report relates the travel company, believed to have been hit
hard by the flight bans imposed during the Icelandic ash cloud
crisis, announced on its Web site that it had ceased trading as of
9:00 p.m. on Thursday.

According to the report, travel organization Abta said those who
had booked Atol (Air Travel Operators' Licensing) package tours
should be able to continue with their holidays as planned.

"There are approximately 1,200 people away at the moment and most
of them are in Spain.  Anyone who has booked a package holiday
must contact the Civil Aviation Authority (CAA) or contact the
supplier named on their invoice," the report quoted an Abta
spokesman as saying.  The CAA said measures would be put in place
to ensure those abroad with Atol packages can come home, the
report notes.

Birmingham-based Sun4U specialized in holidays on the Spanish
coast and Mallorca.

* UK: Creditors Accelerate Commercial-Property Sales
Anita Likus at Dow Jones Newswires reports that U.K. banks and
other creditors are speeding up commercial-property sales of
distressed assets partly because they are concerned the recent
increase in prices may be leveling off.

Dow Jones says buyers, however, shouldn't expect cheap property to
flood the market and reduce prices.  Dow Jones notes observers
said that while banks will accelerate property sales, they will
continue to sell assets in an orderly manner to protect prices in
a recovering market.

This year, there have been 64 deals, which included a bank or
receiver, totaling GBP1.71 billion (US$2.72 billion) compared with
GBP1.91 billion for the whole of 2009, Dow Jones discloses, citing
data provider Property Data.

The assets coming on the market include distressed real estate
taken over as well as troubled loans whose borrowers have
defaulted, Dow Jones discloses.  Most are being sold below book
value, Dow Jones states.


* EUROPE: Bondholders Must Bear Cost of Bank Collapse
Bondholders must bear the cost of a future Lehman Brothers style
collapse, Harry Wilson writes for The Daily Telegraph, citing a
report by the Association for Financial Markets in Europe into how
a similar crisis could be avoided.

According to The Daily Telegraph, AFME said owners of bonds in
failed financial institutions should be forced to take a haircut
on the value of their investment.

The Daily Telegraph says in what the AFME describes as a "bail-in"
process, owners a troubled bank's debt should face the prospect of
their bonds converting into common shares to prop up the
institutions finances.

The trigger for a bail-in, which is designed to avoid the need for
future government bail-outs of the banking industry, would be the
capital ratios of a bank falling to a pre-defined level at which
point bonds would begin turning into equity in order of their
ranking in the debt structure, The Daily Telegraph discloses.

"There will always be the risk of firms failing but we need to
ensure that they do not destabilize the wider economy or need
taxpayers' funds to refinance them," the report quoted Mark
Austen, acting chief executive of AFME, as saying.

"Taxpayers should never again be the first to be called upon for
help when there is a banking crisis."

As part of this effort, the AFME also proposes that banks should
raise more of their future funding through selling contingent
capital, which is specifically designed to convert into shares
when a bank's balance sheet is under pressure, The Daily Telegraph

The potential benefits of the AFME's ideas could be significant,
and the organization's case study on Lehman Brothers' collapse
suggests that total losses could have been capped at about US$25
billion (GBP16 billion) instead of the US$150 billion its record
bankruptcy is estimated to have cost, The Daily Telegraph notes.

* BOND PRICING: For the Week August 9 to August 13, 2010

Issuer                Coupon   Maturity Currency  Price
------                ------   -------- --------  -----

RAIFF ZENTRALBK         5.470  2/28/2028    EUR    69.93
RAIFF ZENTRALBK         4.500  9/28/2035    EUR    59.34

FORTIS BANK             8.750  12/7/2010    EUR    13.63
NTRP                    8.750   8/2/2010    USD    77.44

MUNI FINANCE PLC        0.250  6/28/2040    CAD    23.98
MUNI FINANCE PLC        0.500  3/17/2025    CAD    54.25
MUNI FINANCE PLC        0.500  9/24/2020    CAD    68.95
MUNI FINANCE PLC        1.000  6/30/2017    ZAR    66.64
MUNI FINANCE PLC        1.000  2/27/2018    AUD    67.08

AIR FRANCE-KLM          4.970   4/1/2015    EUR    14.42
ALCATEL SA              4.750   1/1/2011    EUR    16.53
ALCATEL-LUCENT          5.000   1/1/2015    EUR     3.15
ALTRAN TECHNOLOG        6.720   1/1/2015    EUR     4.56
ATOS ORIGIN SA          2.500   1/1/2016    EUR    50.02
CALYON                  6.000  6/18/2047    EUR    46.35
CAP GEMINI SOGET        3.500   1/1/2014    EUR    42.54
CAP GEMINI SOGET        1.000   1/1/2012    EUR    43.82
CLUB MEDITERRANE        4.375  11/1/2010    EUR    49.80
EURAZEO                 6.250  6/10/2014    EUR    55.31
FAURECIA                4.500   1/1/2015    EUR    20.41
GROUPE VIAL             2.500   1/1/2014    EUR    18.93
MAUREL ET PROM          7.125  7/31/2015    EUR    12.35
MAUREL ET PROM          7.125  7/31/2014    EUR    15.66
NEXANS SA               4.000   1/1/2016    EUR    60.48
PEUGEOT SA              4.450   1/1/2016    EUR    29.06
PUBLICIS GROUPE         3.125  7/30/2014    EUR    37.46
PUBLICIS GROUPE         1.000  1/18/2018    EUR    48.11
RHODIA SA               0.500   1/1/2014    EUR    46.45
SOC AIR FRANCE          2.750   4/1/2020    EUR    20.41
SOITEC                  6.250   9/9/2014    EUR     9.82
TEM                     4.250   1/1/2015    EUR    54.64
THEOLIA                 2.700   1/1/2041    EUR    13.08
VALEO                   2.375   1/1/2011    EUR    46.87
ZLOMREX INT FIN         8.500   2/1/2014    EUR    50.50
ZLOMREX INT FIN         8.500   2/1/2014    EUR    50.50

DEUTSCHE BK LOND        3.000  5/18/2012    CHF    61.19
DEUTSCHE BK LOND        0.500  8/25/2017    BRL    52.13
HSH NORDBANK AG         4.375  2/14/2017    EUR    73.90
L-BANK FOERDERBK        0.500  5/10/2027    CAD    48.85
QIMONDA FINANCE         6.750  3/22/2013    USD     3.69
RENTENBANK              1.000  3/29/2017    NZD    73.77
SOLON AG SOLAR          1.375  12/6/2012    EUR    40.80

ATHENS URBAN TRN        4.851  9/19/2016    EUR    74.91
ATHENS URBAN TRN        5.008  7/18/2017    EUR    73.16
HELLENIC REP I/L        2.900  7/25/2025    EUR    53.22
HELLENIC REP I/L        2.300  7/25/2030    EUR    48.78
HELLENIC REPUB          5.000  3/11/2019    EUR    74.21
HELLENIC REPUB          6.140  4/14/2028    EUR    74.66
HELLENIC REPUB          5.200  7/17/2034    EUR    65.01
HELLENIC REPUB          5.000  8/22/2016    JPY    73.93
HELLENIC REPUBLI        4.300  7/20/2017    EUR    68.48
HELLENIC REPUBLI        3.700  7/20/2015    EUR    72.22
HELLENIC REPUBLI        3.600  7/20/2016    EUR    70.35
HELLENIC REPUBLI        4.600  7/20/2018    EUR    68.79
HELLENIC REPUBLI        6.000  7/19/2019    EUR    73.37
HELLENIC REPUBLI        6.250  6/19/2020    EUR    74.59
HELLENIC REPUBLI        4.700  3/20/2024    EUR    61.99
HELLENIC REPUBLI        5.300  3/20/2026    EUR    62.47
HELLENIC REPUBLI        4.500  9/20/2037    EUR    54.93
HELLENIC REPUBLI        4.600  9/20/2040    EUR    54.83
NATIONAL BK GREE        3.875  10/7/2016    EUR    74.22
YIOULA GLASSWORK        9.000  12/1/2015    EUR    67.21
YIOULA GLASSWORK        9.000  12/1/2015    EUR    65.75

ALLIED IRISH BKS        5.250  3/10/2025    GBP    61.75
DEPFA ACS BANK          4.900  8/24/2035    CAD    72.77
DEPFA ACS BANK          1.920   5/9/2020    JPY    69.68
DEPFA ACS BANK          0.500   3/3/2025    CAD    39.43
DEPFA ACS BANK          5.125  3/16/2037    USD    76.40
DEPFA ACS BANK          5.125  3/16/2037    USD    75.71
IRISH PERM PLC          7.284  2/15/2035    EUR    65.04

COMUNE DI MILANO        4.019  6/29/2035    EUR    71.99

ARCELORMITTAL           7.250   4/1/2014    EUR    28.81
BREEZE FINANCE          4.524  4/19/2027    EUR    89.18
GLOBAL YATIRIM H        9.250  7/31/2012    USD    70.38
IIB LUXEMBOURG         11.000  2/19/2013    USD    60.00
INTL INDUST BANK        9.000   7/6/2011    EUR    66.88
LIGHTHOUSE INTL         8.000  4/30/2014    EUR    62.03
LIGHTHOUSE INTL         8.000  4/30/2014    EUR    61.50

APP INTL FINANCE       11.750  10/1/2005    USD     1.00
ARPENI PR INVEST        8.750   5/3/2013    USD    42.88
ARPENI PR INVEST        8.750   5/3/2013    USD    42.88
BK NED GEMEENTEN        0.500  2/24/2025    CAD    54.89
BLT FINANCE BV          7.500  5/15/2014    USD    70.00
BLT FINANCE BV          7.500  5/15/2014    USD    70.50
BRIT INSURANCE          6.625  12/9/2030    GBP    66.70
ELEC DE CAR FIN         8.500  4/10/2018    USD    56.04
FRIESLAND BANK          5.320  2/26/2024    EUR    44.68
FRIESLAND BANK          4.125   1/8/2016    EUR    55.07
IVG FINANCE BV          1.750  3/29/2017    EUR    72.80
NATL INVESTER BK       25.983   5/7/2029    EUR    22.79
NED WATERSCHAPBK        2.927  6/30/2045    EUR    73.90
NED WATERSCHAPBK        0.500  3/11/2025    CAD    53.28
Q-CELLS INTERNAT        5.750  5/26/2014    EUR    69.61
RBS NV EX-ABN NV        6.316  6/29/2035    EUR    70.92
TJIWI KIMIA FIN        13.250   8/1/2001    USD     0.01
TURANALEM FIN BV        8.250  1/22/2037    USD    50.06
TURANALEM FIN BV        8.500  2/10/2015    USD    49.69
TURANALEM FIN BV        8.000  3/24/2014    USD    46.90

EKSPORTFINANS           0.500   5/9/2030    CAD    41.81
NORSKE SKOGIND          7.000  6/26/2017    EUR    66.44

REP OF POLAND           2.648  3/29/2034    JPY    70.59

ACBK-INVEST             9.500  4/14/2011    RUB     2.01
AGROKOM GROUP          10.000  6/21/2011    RUB     6.00
AGROSOYUZ              17.000  3/28/2012    RUB     2.00
APK ARKADA             17.500  5/23/2012    RUB     0.38
ARKTEL-INVEST          12.000   4/9/2012    RUB     2.00
ATOMSTROYEXPORT-        7.750  5/24/2011    RUB     2.00
BANK OF MOSCOW          7.500   2/1/2013    RUB     2.03
BANK OF MOSCOW          6.450  7/29/2011    RUB     5.01
BANK SOYUZ             16.000   5/2/2011    RUB     2.00
BARENTSEV FINANS       20.000   7/4/2011    RUB    30.00
BASHKIRENERGO           8.300   3/9/2011    RUB     2.00
CB STROYCREDIT          9.500   8/1/2011    RUB    15.50
CREDIT EUROPE BA       11.500  6/28/2011    RUB     2.00
DALSVYAZ                7.600  5/30/2012    RUB     3.01
DALUR-FINANS           14.000   2/5/2013    RUB     4.01
DIPOS                   8.000  6/19/2012    RUB    21.01
DVTG-FINANS            14.500   8/3/2010    RUB    16.50
DVTG-FINANS            17.000  8/29/2013    RUB    12.30
EESK                    8.740   4/5/2012    RUB    16.01
ELIS                   18.500  9/20/2012    RUB    20.85
ENERGOSPETSSNAB         8.500  5/30/2016    RUB     0.10
ENERGOSTROY-FINA       12.000  5/20/2011    RUB     2.00
EUROKOMMERZ            16.000  3/15/2011    RUB     0.01
FAR EASTERN GENE       10.500   3/8/2013    RUB    25.01
FINANCEBUSINESSG       12.500  6/22/2011    RUB     4.00
FINANCEBUSINESSG       10.000   7/1/2013    RUB     2.01
FORTUM OJSC             7.600   2/6/2013    RUB     3.01
GAZPROMNEFT             7.150   4/9/2013    RUB     1.67
GLOBEX-FINANS           0.100  4/26/2011    RUB    17.01
GRACE DIAMOND          15.000   6/7/2012    RUB     2.00
GRADOSTROY-INVES       11.000   3/3/2011    RUB     2.00
HCF BANK               12.200  6/10/2014    RUB    11.00
IART                   12.000   8/4/2013    RUB     5.00
IAZS                   11.000  12/8/2010    RUB     1.00
INPROM                  9.500  5/18/2011    RUB     8.00
INTERGRAD              15.000   7/9/2014    RUB     2.01
INTERSOFT              10.070  3/31/2025    RUB     1.00
INTL INDUST BANK       13.250   1/3/2018    RUB     3.00
INVESTTORGBANK         14.500  10/8/2012    RUB    15.72
IZHAVTO                18.000   6/9/2011    RUB    11.31
KAMAZ-FINANS           11.250  9/17/2010    RUB     6.01
KARUSEL FINANS         12.000  9/12/2013    RUB     2.00
KOMOS GROUP            13.500  7/21/2011    RUB    16.01
KOSMOS-FINANS          10.200  6/16/2011    RUB    16.01
KRAYINVESTBANK          8.500   8/5/2011    RUB     3.01
KUBANSKAYA NIVA        15.500  2/20/2014    RUB     2.00
LADYA FINANS           13.750  9/13/2012    RUB     2.00
LEKSTROY                0.100  7/22/2011    RUB     3.00
LR-INVEST              13.750  7/17/2012    RUB     3.01
LSR-INVEST              9.250  7/14/2011    RUB    29.01
M-INDUSTRIYA           12.250  8/16/2011    RUB    29.01
M-INDUSTRIYA           14.250  7/10/2013    RUB     4.03
MACROMIR-FINANS         7.750   7/3/2012    RUB     2.01
MAIN ROAD OJSC         10.200   6/3/2011    RUB     3.00
METROSTROY INVES       10.500  9/23/2011    RUB     4.01
MIG-FINANS              0.100   9/6/2011    RUB     2.01
MIRATORG-FINANS        11.000   8/2/2012    RUB     0.21
MIRAX                  17.000  9/17/2012    RUB    30.02
MIRAX                  14.990  5/17/2011    RUB    34.00
MORTON-RSO             12.000  2/28/2011    RUB     1.73
MOSKOMMERTSBANK         1.000  6/12/2013    RUB    15.50
MOSMART FINANS          0.010  4/12/2012    RUB     1.71
MOSOBLGAZ              12.000  5/17/2011    RUB    72.50
MOSOBLTRUSTINVES       20.000  3/26/2011    RUB     6.99
MOSSELPROM FINAN       14.000  4/10/2014    RUB     3.00
NATIONAL CAPITAL       13.000  9/25/2012    RUB     1.56
NATIONAL CAPITAL       12.500  5/20/2011    RUB     3.00
NAUKA-SVYAZ            15.000  6/27/2013    RUB     3.00
NEW INVESTMENTS        12.000   7/7/2011    RUB     2.01
NOK                    17.000  8/26/2014    RUB     3.00
NOK                    15.500  9/22/2011    RUB     2.00
NOMOS-LEASING          12.000   7/8/2011    RUB     2.01
NOVOROSSIYSK           13.000  12/9/2011    RUB     2.00
NUTRINVESTHOLDIN       11.000  6/30/2014    RUB    34.68
OBYEDINEONNYE KO        3.000  5/16/2012    RUB     5.01
OJSC FCB               11.000   8/7/2012    RUB     4.01
OSMO KAPITAL           10.200   3/7/2011    RUB     1.54
PEB LEASING            14.000  9/12/2014    RUB     1.66
PENSION FUND REA        5.000   5/7/2019    RUB     1.67
POLYPLAST              19.000  6/21/2011    RUB    11.01
PROM TECH              16.000  4/25/2011    RUB     7.01
PROMNESTESERVICE        9.500  12/5/2014    RUB     4.00
RAF-LEASING            12.500  2/21/2012    RUB     2.00
RAILTRANSAUTO          17.500  12/4/2013    RUB     2.00
REGIONENERGO            8.500  5/30/2016    RUB     2.00
RFA-INVEST             10.000  11/4/2011    RUB     3.01
RIATO                  13.750   6/3/2013    RUB     1.78
ROSSELKHOZBANK         13.350   2/9/2018    RUB     1.57
ROTOR                   7.750   3/4/2014    RUB     1.51
RUSSIAN STANDARD        7.800  9/20/2011    RUB     1.58
RVK-FINANS              9.500  7/21/2011    RUB    19.01
RYBINSKKABEL            0.010  2/28/2012    RUB     1.00
SATURN                 10.000   6/6/2014    RUB     5.00
SENATOR                14.000  5/18/2012    RUB    22.01
SEVKABEL-FINANS        10.500  3/27/2012    RUB    11.66
SIBUR                   9.000  3/13/2015    RUB     2.00
SIBUR                  10.470  11/1/2012    RUB     3.00
SIBUR                   9.250  3/13/2015    RUB     2.00
SIBUR                  13.500  3/13/2015    RUB     2.00
SIBUR                   9.000  3/13/2015    RUB     2.00
SISTEMA-HALS            8.500   4/8/2014    RUB     2.00
SOUTHERN STOCK C       15.750  4/29/2014    RUB     2.00
SPETSSTROYFINANC        8.500  5/30/2016    RUB     1.00
STROYTRANSGAZ           8.500  4/11/2013    RUB    15.61
SVOBODNY SOKOL         18.000  5/24/2011    RUB     2.01
SVYAZ BANK             16.000  4/21/2011    RUB     1.52
SYNTERRA                0.010   8/1/2013    RUB    70.00
TAIF-FINANS             8.420   9/9/2010    RUB     1.68
TALIO-PRINCEPS         16.000  5/17/2012    RUB     4.00
TECHNONICOL-FINA       17.000   3/7/2012    RUB    17.43
TECHNOSILA-INVES        7.000  5/26/2011    RUB     4.00
TERNA-FINANS            1.000  11/4/2011    RUB     9.00
TGK-1                   8.500  3/11/2014    RUB     2.00
TGK-4                   8.000  5/31/2012    RUB    24.01
TK FINANS              12.600   9/5/2011    RUB     1.00
TOP-KNIGA              20.000  12/9/2010    RUB    15.01
TRANSCREDITFACTO       12.000  11/1/2012    RUB     5.00
TRANSCREDITFACTO       12.000  6/11/2012    RUB     4.00
TRANSFIN-M             10.750  8/10/2012    RUB    11.01
TRANSFIN-M             11.000  12/3/2015    RUB     3.00
TRANSFIN-M             14.000  7/10/2014    RUB     3.01
TRANSFIN-M             11.000  12/3/2015    RUB     6.00
TRANSFIN-M             11.000  12/3/2014    RUB     6.00
TRANSFIN-M             11.000  12/3/2014    RUB     6.00
TRANSFIN-M             11.000  12/3/2014    RUB     3.00
TRANSFIN-M             11.000  12/3/2014    RUB     3.00
TRANSFIN-M             11.000  12/3/2015    RUB     3.00
TRANSFIN-M             11.000  12/3/2015    RUB     5.00
TRANSNEFT              11.750  10/1/2019    RUB     1.01
TRANSNEFT               9.750  5/13/2019    RUB     0.04
TVER VAGONOSTRO         7.000  6/12/2013    RUB     1.01
UNITED HEAVY MAC       13.000  8/30/2011    RUB    33.01
UNITED HEAVY MAC       13.000  5/31/2013    RUB     3.00
URALCHIMPLAST           8.000  1/21/2011    RUB     2.01
URALELEKTROMED          8.250  2/28/2012    RUB     1.73
URALSVYAZINFORM         7.500   4/2/2013    RUB    11.00
URALSVYAZINFORM         8.500  3/13/2012    RUB    11.00
VLADPROMBANK           12.000   3/8/2011    RUB     1.00
VMK-FINANCE            16.000  5/21/2014    RUB     5.00
VTB-LEASING FINA        9.800  11/6/2014    RUB     2.00
XM STROYRESURS         10.000  7/12/2011    RUB    29.01
YUGFINSERVICE          15.250  5/20/2014    RUB     1.52
ZHILSOTSIPOTEKA-        9.000  7/26/2011    RUB     6.01

AYT CEDULAS CAJA        3.750  6/30/2025    EUR    74.28
BANCAJA                 1.500  5/22/2018    EUR    61.43
BANCAJA EMI SA          2.755  5/11/2037    JPY    43.50
BANCO GUIPUZCOAN        1.500  4/18/2022    EUR    53.76
CAIXA TERRASSA          1.500  3/12/2022    EUR    51.95
CEDULAS TDA A-6         4.250  4/10/2031    EUR    73.68

SWEDISH EXP CRED        9.000  8/28/2011    USD     9.99

UBS AG                 14.000  5/23/2012    USD     8.83
UBS AG                 10.580  6/29/2011    USD    38.50
UBS AG                 13.300  5/23/2012    USD     4.02
UBS AG JERSEY          10.500  6/16/2011    USD    72.54
UBS AG JERSEY          10.650  4/29/2011    USD    15.79
UBS AG JERSEY          11.030  4/21/2011    USD    20.57
UBS AG JERSEY          10.820  4/21/2011    USD    21.61
UBS AG JERSEY          16.160  3/31/2011    USD    43.29
UBS AG JERSEY          10.990  3/31/2011    USD    31.46
UBS AG JERSEY          12.800  2/28/2011    USD    34.30
UBS AG JERSEY          11.000  2/28/2011    USD    63.92
UBS AG JERSEY          15.250  2/11/2011    USD    11.74
UBS AG JERSEY          10.000  2/11/2011    USD    59.88
UBS AG JERSEY          16.170  1/31/2011    USD    13.00
UBS AG JERSEY          14.640  1/31/2011    USD    36.95
UBS AG JERSEY          13.900  1/31/2011    USD    35.33
UBS AG JERSEY           9.500  8/31/2010    USD    55.40
UBS AG JERSEY           3.220  7/31/2012    EUR    55.06
UBS AG JERSEY           9.450  9/21/2011    USD    49.55
UBS AG JERSEY           9.350  9/21/2011    USD    66.32
UBS AG JERSEY          11.150  8/31/2011    USD    38.35
UBS AG JERSEY          10.360  8/19/2011    USD    52.14
UBS AG JERSEY          10.280  8/19/2011    USD    35.15
UBS AG JERSEY          13.000  6/16/2011    USD    48.78

BANK OF SCOTLAND        6.984   2/7/2035    EUR    70.62
BARCLAYS BK PLC        10.950  5/23/2011    USD    59.50
BARCLAYS BK PLC         7.610  6/30/2011    USD    53.33
BARCLAYS BK PLC         9.000  6/30/2011    USD    43.24
BARCLAYS BK PLC        10.600  7/21/2011    USD    41.21
BARCLAYS BK PLC         8.550  1/23/2012    USD    11.42
BARCLAYS BK PLC        10.350  1/23/2012    USD    20.64
BARCLAYS BK PLC        12.950  4/20/2012    USD    19.76
BARCLAYS BK PLC        10.800  7/31/2012    USD    26.68
BRADFORD&BIN BLD        4.910   2/1/2047    EUR    64.97
BRADFORD&BIN PLC        6.625  6/16/2023    GBP    44.93
BRADFORD&BIN PLC        7.625  2/16/2049    GBP    47.40
CO-OPERATIVE BNK        5.875  3/28/2033    GBP    75.95
EFG HELLAS PLC          6.010   1/9/2036    EUR    48.75
EFG HELLAS PLC          5.400  11/2/2047    EUR    61.25
ENTERPRISE INNS         6.375  9/26/2031    GBP    70.83
HBOS PLC                4.500  3/18/2030    EUR    72.37
HBOS PLC                6.000  11/1/2033    USD    63.01
HBOS PLC                6.000  11/1/2033    USD    63.01
NORTHERN ROCK           5.750  2/28/2017    GBP    60.25
PRINCIPALITY BLD        5.375   7/8/2016    GBP    65.44
PUNCH TAVERNS           6.468  4/15/2033    GBP    71.88
ROYAL BK SCOTLND       10.000  2/15/2045    USD    60.18
TXU EASTERN FNDG        6.450  5/15/2005    USD     0.01
UNIQUE PUB FIN          6.464  3/30/2032    GBP    64.31
UNIQUE PUB FIN          7.395  3/28/2024    GBP    75.03
WESSEX WATER FIN        1.369  7/31/2057    GBP    24.40


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

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  Go to 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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