TCREUR_Public/100929.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

         Wednesday, September 29, 2010, Vol. 11, No. 192

                            Headlines



F R A N C E

NATIXIS: Fitch Upgrades Individual Rating from 'C/D'


G E R M A N Y

ARCANDOR AG: Two Creditors Object to Karstadt Insolvency Plan
BAYERISCHE LANDESBANK: Fitch Raises Individual Rating to 'D'
HSH NORDBANK: Fitch Affirms Individual Rating at 'D/E'
TUI AG: Moody's Affirms Corporate Family Rating at 'Caa1'
WESTLB AG: Formal Sale Process Due to Begin This Week

WESTLB AG: Fitch Upgrades Individual Rating to 'D'

* GERMANY: May Extend Bonus Caps at Bailed-Out Banks
* GERMANY: Seeks to Reorganize Troubled Landesbanken Sector


H U N G A R Y

VERTESI EROMU: Hungary Seeks Extension of Subsidies Until 2014


I R E L A N D

ANGLO IRISH: Senior Bondholders Won't Share Debt Burden
ANGLO IRISH: Moody's Downgrades Rating on Senior Debts
AWAS AVIATION: Moody's Assigns 'Ba2' Rating on Senior Notes
SUNDRIVE PHARMACY: Interim Examiner Appointed


N E T H E R L A N D S

SAECURE 9: Moody's Assigns 'Ba2 (sf)' Rating on Class F Notes


P O R T U G A L

* PORTUGAL: Construction Sector Bankruptcies Reach 3,900
* PORTUGAL: Failure to Address Fiscal Issues Pushes Up Debt Yields


R U S S I A

ALFA BOND: Fitch Assigns 'BB' Rating on Senior Unsecured Loan
BANK SOYUZ: S&P Affirms 'B-' Long-Term Counterparty Credit Rating
EUROKOMMERZ HOLDING: Moody's Withdraws 'C' Issuer Ratings
NOVOROSSIYSK PJSC: Moody's Reviews 'Ba1' Corporate Family Rating


U N I T E D   K I N G D O M

CATHCO PROPERTY: Goes Into Administration; 450+ Jobs at Risk
CONNAUGHT PLC: Centrica's British Gas Buys Gas & Electricity Biz
DUNDEE FOOTBALL CLUB: May Go Into Administration Again
KSHOCOLAT LTD: Aims for Resurgence With New Brand Manager
MELDEX INTERNATIONAL: Goes Into Administration

MIDLAND STEEL: Placed Into Administration; Cuts 45 Jobs
ROYAL BANK: Cuts 500 Back-Office Jobs at Investment Banking Unit
ROYAL BANK: Sells Chilean Banking Business to Nova Scotia
SCREEN EAST: Blighty's Elstree Fights to Save Regional Funds
SHEFFIELD WEDNESDAY: Receivership Likely If Chairman & CEO Leave

TAYMOUTH CASTLE: Potential Buyer Emerges for Estate

* UK: Inquiry to Look Into Banks' Retail & Investment Operations


X X X X X X X X

* EUROPE: Germany Seeks Tougher Penalties for High-Deficit States




                         *********



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


NATIXIS: Fitch Upgrades Individual Rating from 'C/D'
----------------------------------------------------
Fitch Ratings has upgraded Groupe BPCE's Individual rating to 'C'
from 'C/D' and subsidiary Natixis' Individual rating to 'C/D' from
'E'.  The agency has also upgraded the hybrid instruments issued
by group entities to 'BBB-' from 'BB'.

At the same time Fitch has affirmed GBPCE's, BPCE's (GBPCE's
central body) and Natixis' Long-term Issuer Default Ratings at
'A+' and Short-term IDRs at 'F1+'.  A full rating breakdown is
provided at the end of this comment.

These upgrades reflect the reduced risk profile at Natixis and the
indirect positive impact on the two banks' profitability and
capitalization.

Natixis' new management has been successful in controlling and
reducing the bank's risk profile since mid-2009.  This is
illustrated by the significantly reduced loan impairment charges
(around EUR200 million in both H209 and H110, compared with EUR1.2
billion in H109) and only EUR7 million losses for Gestion Active
des Portefeuilles Cantonnes (GAPC - the entity that hosts
activities and assets in run-off mode) since end-June 2009,
compared with a EUR3 billion loss in H109.  As a consequence, the
bank has returned to real profitability, with a EUR1.1 billion
operating profit and a 70% cost/income ratio in H110 according to
Fitch calculations, internal capital generation has resumed and
Natixis no longer needs additional capital support from its
shareholder.  Natixis' eligible capital/weighted risks ratio of
9.8% at end-June 2010 is sound for its reduced risk profile.

Natixis' Individual rating benefits from the guarantee from BPCE
towards GAPC, which contributes to reducing Natixis' exposure to
GAPC's weighted risks to an estimated EUR6 billion at end-2010.
Liquidity is now managed and supervised on a consolidated basis at
BPCE level and market medium- and long-term funding is centralized
at BPCE level; these are consequently no longer sources of
concern.  On the other hand, Natixis' Individual rating suffers
from high dependence on corporate and investment banking revenue.
Natixis' IDRs are aligned with those of its 72% shareholder,
GBPCE, as its affiliation to BPCE means that BPCE is legally
responsible for maintaining adequate solvency and liquidity at
Natixis at all times.

The strong improvement in Natixis' risk profile is mirrored in
GBPCE's and translated into EUR1.8 billion and EUR3 billion
operating profit for the group in H209 and H110 respectively
according to Fitch calculations.  Internal capital generation and
reduced concerns about Natixis' risk profile lessened pressure on
capital and GBPCE has been able to repay EUR3.55 billion of the
EUR7.05 billion capital received from the state.  Nevertheless,
the Individual rating remains low for a group with such an
extensive franchise in the safe French retail market (GBPCE is the
second largest in French retail banking, controlling a market
share of over 21%) and sound loan quality.  This is mostly due to
the group's weak capitalization in light of the remaining stock of
risky assets in GAPC and the high proportion of hybrid capital
instruments in its capital base.  GBPCE's IDRs are still driven by
support from the French state.

The rating action on the hybrid instruments reflects the reduced
risk of deferral of interest payments as GBPCE's profitability
improves.

The rating actions are:

Groupe BPCE

  -- Long-term IDR: affirmed at 'A+'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1+'
  -- Individual Rating: upgraded to 'C' from 'C/D'
  -- Support Rating: affirmed at '1'
  -- Support Rating Floor: affirmed at 'A+'

BPCE (Groupe BPCE's central body)

  -- Long-term IDR: affirmed at 'A+'; Stable Outlook
  -- Short-term IDR: affirmed at 'F1+'
  -- Support Rating: affirmed at '1'
  -- Support Rating Floor: affirmed at 'A+'
  -- Senior unsecured debt: affirmed at 'A+'
  -- Innovative tier 1: upgraded to 'BBB-' from 'BB'
  -- Non-innovative tier 1: upgraded to 'BBB-' from 'BB'
  -- Lower tier 2: affirmed at 'A'
  -- Commercial paper: affirmed at 'F1+'

These entities' Long-term IDRs of 'A+' with Stable Outlooks and
Short-term IDRs of 'F1+' have been affirmed:

Banque Populaire Atlantique
Banque Populaire Bourgogne, Franche-Comte
Banque Populaire Centre Atlantique
Banque Populaire Cote d'Azur
Banque Populaire d'Alsace
Banque Populaire de l'Ouest
Banque Populaire de Lorraine-Champagne
Banque Populaire des Alpes
Banque Populaire du Massif-Central
Banque Populaire du Nord
Banque Populaire du Sud
Banque Populaire du Sud-Ouest
Banque Populaire Loire et Lyonnais
Banque Populaire Occitane
Banque Populaire Provencale et Corse
Banque Populaire Rives de Paris
Banque Populaire Val-de-France
BRED - Banque Populaire
CASDEN - Banque Populaire
Credit Cooperatif
Groupe Credit Cooperatif
Credit Maritime Mutuel
Societe Centrale de Credit Maritime Mutuel

Natixis:

  -- Long-term IDR: affirmed at 'A+'; Outlook Stable

  -- Short-term IDR: affirmed at 'F1+'

  -- Individual Rating: upgraded to 'C/D' from 'E'

  -- Support Rating: affirmed at '1'

  -- Senior Unsecured debt: affirmed at 'A+'

  -- Lower Tier 2: affirmed at 'A'

  -- Hybrid capital instruments: upgraded to 'BBB-' from 'BB'

  -- Short-term commitments guaranteed by Caisse des Depots et
     Consignations: affirmed at 'F1+'

  -- Long-term commitments guaranteed by Caisse des Depots et
     Consignations: affirmed at 'AAA'

  -- Long-term commitments guaranteed by BPCE: affirmed at 'A+'

NBP Capital Trust I:

  -- Preferred stock: upgraded to 'BBB-' from 'BB'


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


ARCANDOR AG: Two Creditors Object to Karstadt Insolvency Plan
-------------------------------------------------------------
Bloomberg News, citing Financial Times Deutschland, reports that
Karstadt Warenhaus GmbH's insolvency plan, due to be finalized
this week, may be imperiled by objections filed by two creditors.

The newspaper said Gilde Group, which seeks payment of a EUR71,000
(US$95,560) claim, and Dawnay Day, which seeks several million
euros, would need to retract their objections to clear the way for
investor Nicolas Berggruen to take over the operations as planned
on Sept. 30, according to Bloomberg.

Financial Times Deutschland reported that legal proceedings over
the objections, including appeals, would drag on for months so
only a settlement could prevent an impasse, Bloomberg says.

As reported by the Troubled Company Reporter-Europe on Sept. 6,
2010, Bloomberg News said an Essen court approved the sale of
Arcandor AG's Karstadt department-store chain to billionaire
Mr. Berggruen, ending insolvency procedures which started in June
2009.  Bloomberg disclosed the court released its decision by
e-mail after Mr. Berggruen's bid for the insolvent retailer was
accepted by two groups of creditors on Sept. 2.  Holders of so-
called mezzanine financing, a combination of debt and equity,
backed the offer hours after the transaction was approved by
creditors of Karstadt's biggest landlord, the Highstreet
partnership, according to Bloomberg.  Bloomberg recalled
Mr. Berggruen signed a contract to acquire Karstadt on June 8 and
then held talks with the retailers' landlords about lower rents.

                        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.


BAYERISCHE LANDESBANK: Fitch Raises Individual Rating to 'D'
------------------------------------------------------------
Fitch Ratings has maintained the Rating Watch Negatives on the
Long- and Short-term Issuer Default Ratings of Bayerische
Landesbank, HSH Nordbank AG, Landesbank Saar and WestLB AG.  In
addition, Fitch has maintained the RWNs on the Support Rating
Floors of all four banks.  At the same time, Fitch upgraded the
Individual Rating of WestLB to 'D' from 'E', and BayernLB's
Individual Rating to 'D' from 'D/E'.  A full rating breakdown is
provided at the end of this comment.

The four banks' LT IDRs remain at their Support Rating Floors,
which are based on Fitch's view of the extent to which the
respective German regional states (all rated 'AAA') would provide
support to their Landesbank in case of need.  The LT IDRs and
Support Rating Floors of BayernLB, HSH and WestLB were placed on
RWN in September 2009 to reflect their possible ownership changes
as well as related decreases in their importance to their
respective regional states.  The regional states have provided
substantial support in the form of capital injections and/or asset
guarantees after the banks suffered material impacts from the
financial crisis.  These support measures are currently subject to
a review process and pending approval by the European Commission
(EC), which is expected to communicate its decision in the coming
months.

Fitch expects to review the RWN on BayernLB's ratings when the EC
announces its decision on the bank's state aid or if BayernLB's
recently announced exploratory discussions with WestLB result in a
concrete merger plan.  WestLB's and HSH's ratings are likely to
remain on RWN until details of both banks' future ownership
structures become clear.  The RWN on SaarLB's IDRs is pending
Fitch's review of the long-term commitment and strategic
intentions of the regional state of Saarland ('AAA'), which
acquired a 25.2% stake in the bank from BayernLB in June 2010,
increasing the state's stake to 35.2% and reducing BayernLB's
stake to 49.9%.  Fitch expects to conclude this review in Q410.

The upgrade of WestLB's Individual Rating reflects the transfer of
about EUR77 billion of non-strategic assets and securitized
investments to specially created run-off institution Erste
Abwicklungsanstalt and the EUR3 billion capital injection by the
German Finanzmarktstabilisierungsfonds (SoFFin).  These measures
and the bank's return to profitability in H110 have substantially
reduced the risk that WestLB might need external support in the
short term.  However, Fitch considers that the bank's emergence as
a strong going concern remains uncertain.  Similarly, the agency
said that BayernLB's EUR10 billion capital injection and EUR4.8
billion asset guarantee received from the regional state of
Bavaria ('AAA') as well as the bank's return to profitability in
H110 have reduced the probability that it might need renewed
support.

At the same, Fitch affirmed HSH Nordbank's 'D/E' Individual
Rating.  Fitch would only consider an upgrade of the Individual
Rating once the bank demonstrated it was sustainably attracting
sufficient unsecured wholesale funding on competitive terms on its
own merit, in addition to materially reducing credit risk from its
cyclical asset base.

SaarLB's 'D' Individual Rating was not affected by these rating
actions.

The rating actions taken are:

Bayerische Landesbank:

  -- Long-term IDR: 'A+', maintained on RWN
  -- Short-term IDR: 'F1+', maintained on RWN
  -- Individual Rating: upgraded to 'D' from 'D/E'
  -- Support Rating: affirmed at '1'
  -- Support Rating Floor: 'A+', maintained on RWN

HSH Nordbank AG:

  -- Long-term IDR: 'A-', maintained on RWN
  -- Short-term IDR: 'F1', maintained on RWN
  -- Individual Rating: affirmed at 'D/E'
  -- Support Rating: '1', maintained on RWN
  -- Support Rating Floor 'A-', maintained on RWN

Landesbank Saar:

  -- Long-term IDR: 'A+', maintained on RWN
  -- Short-term IDR: 'F1+', maintained on RWN
  -- Support rating: affirmed at '1'
  -- Support Rating Floor: 'A+', maintained on RWN

WestLB AG:

  -- Long-term IDR: 'A-', maintained on RWN
  -- Short-term IDR: 'F1', maintained on RWN
  -- Individual Rating: upgraded to 'D' from 'E'
  -- Support Rating: '1', maintained on RWN
  -- Support Rating Floor: 'A-', maintained on RWN

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual Ratings and the prospect of external support
is reflected in Fitch's Support Ratings.  Collectively, these
ratings drive Fitch's Long- and Short-term IDRs.


HSH NORDBANK: Fitch Affirms Individual Rating at 'D/E'
------------------------------------------------------
Fitch Ratings has maintained the Rating Watch Negatives on the
Long- and Short-term Issuer Default Ratings of Bayerische
Landesbank, HSH Nordbank AG, Landesbank Saar and WestLB AG.  In
addition, Fitch has maintained the RWNs on the Support Rating
Floors of all four banks.  At the same time, Fitch upgraded the
Individual Rating of WestLB to 'D' from 'E', and BayernLB's
Individual Rating to 'D' from 'D/E'.  A full rating breakdown is
provided at the end of this comment.

The four banks' LT IDRs remain at their Support Rating Floors,
which are based on Fitch's view of the extent to which the
respective German regional states (all rated 'AAA') would provide
support to their Landesbank in case of need.  The LT IDRs and
Support Rating Floors of BayernLB, HSH and WestLB were placed on
RWN in September 2009 to reflect their possible ownership changes
as well as related decreases in their importance to their
respective regional states.  The regional states have provided
substantial support in the form of capital injections and/or asset
guarantees after the banks suffered material impacts from the
financial crisis.  These support measures are currently subject to
a review process and pending approval by the European Commission
(EC), which is expected to communicate its decision in the coming
months.

Fitch expects to review the RWN on BayernLB's ratings when the EC
announces its decision on the bank's state aid or if BayernLB's
recently announced exploratory discussions with WestLB result in a
concrete merger plan.  WestLB's and HSH's ratings are likely to
remain on RWN until details of both banks' future ownership
structures become clear.  The RWN on SaarLB's IDRs is pending
Fitch's review of the long-term commitment and strategic
intentions of the regional state of Saarland ('AAA'), which
acquired a 25.2% stake in the bank from BayernLB in June 2010,
increasing the state's stake to 35.2% and reducing BayernLB's
stake to 49.9%.  Fitch expects to conclude this review in Q410.

The upgrade of WestLB's Individual Rating reflects the transfer of
about EUR77 billion of non-strategic assets and securitized
investments to specially created run-off institution Erste
Abwicklungsanstalt and the EUR3 billion capital injection by the
German Finanzmarktstabilisierungsfonds (SoFFin).  These measures
and the bank's return to profitability in H110 have substantially
reduced the risk that WestLB might need external support in the
short term.  However, Fitch considers that the bank's emergence as
a strong going concern remains uncertain.  Similarly, the agency
said that BayernLB's EUR10 billion capital injection and EUR4.8
billion asset guarantee received from the regional state of
Bavaria ('AAA') as well as the bank's return to profitability in
H110 have reduced the probability that it might need renewed
support.

At the same, Fitch affirmed HSH Nordbank's 'D/E' Individual
Rating.  Fitch would only consider an upgrade of the Individual
Rating once the bank demonstrated it was sustainably attracting
sufficient unsecured wholesale funding on competitive terms on its
own merit, in addition to materially reducing credit risk from its
cyclical asset base.

SaarLB's 'D' Individual Rating was not affected by these rating
actions.

The rating actions taken are:

Bayerische Landesbank:

  -- Long-term IDR: 'A+', maintained on RWN
  -- Short-term IDR: 'F1+', maintained on RWN
  -- Individual Rating: upgraded to 'D' from 'D/E'
  -- Support Rating: affirmed at '1'
  -- Support Rating Floor: 'A+', maintained on RWN

HSH Nordbank AG:

  -- Long-term IDR: 'A-', maintained on RWN
  -- Short-term IDR: 'F1', maintained on RWN
  -- Individual Rating: affirmed at 'D/E'
  -- Support Rating: '1', maintained on RWN
  -- Support Rating Floor 'A-', maintained on RWN

Landesbank Saar:

  -- Long-term IDR: 'A+', maintained on RWN
  -- Short-term IDR: 'F1+', maintained on RWN
  -- Support rating: affirmed at '1'
  -- Support Rating Floor: 'A+', maintained on RWN

WestLB AG:

  -- Long-term IDR: 'A-', maintained on RWN
  -- Short-term IDR: 'F1', maintained on RWN
  -- Individual Rating: upgraded to 'D' from 'E'
  -- Support Rating: '1', maintained on RWN
  -- Support Rating Floor: 'A-', maintained on RWN

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual Ratings and the prospect of external support
is reflected in Fitch's Support Ratings.  Collectively, these
ratings drive Fitch's Long- and Short-term IDRs.


TUI AG: Moody's Affirms Corporate Family Rating at 'Caa1'
---------------------------------------------------------
Moody's Investors Service has affirmed the Corporate Family Rating
and Probability of Default Rating of TUI AG at Caa1; the unsecured
rating and the subordinated ratings are also affirmed at Caa2 and
Caa3, respectively.  The outlook is changed to stable from
negative.

The change in outlook reflects Moody's view that the recently
announced measures to refinance the Hapag-Lloyd AG shipping line,
rated (P) B1 stable, will, if successful, be beneficial for the
liquidity profile of TUI AG as well, and that the recovery in the
shipping market should increase the recovery prospects of TUI's
exposure to Hapag-Lloyd.  In particular, Hapag-Lloyd should be in
a position to resume interest payments on its debt instruments and
other liabilities to TUI AG going forward, and TUI expects an
upfront inflow of c.EUR65 million of deferred interest on these
instruments.  In addition, Moody's notes TUI's statement that
following the refinancing of Hapag-Lloyd, TUI is entitled to sell
its hybrid 2 instrument (EUR350 million) with immediate effect and
that it expects repayment of its hybrid 3 instrument in the near-
to-medium term (EUR215 million).  Finally, TUI expects to monetize
its EUR227 million bridge loan to Hapag-Lloyd in the near future.
Moody's believe that all of these measures could have a further
positive impact on TUI's credit and liquidity profile.

Moody's has previously indicated that the ability to monetize TUI
AG's EUR2.5 billion financial exposure to Hapag-Lloyd (as of June
2010) would be beneficial for both its liquidity and credit
metrics.  At this point, Moody's believes that TUI AG's liquidity
profile at the holding company level is expected to be sufficient
at least for a 12-month period, taking into account the current
cash balance of c.EUR1 billion, and the expected cash inflows and
outflows (notably the December 2010 bond redemption) during that
period.

The stable outlook reflects on the one hand the view that further
monetization of the financial exposure to Hapag-Lloyd would likely
be positive for the rating or outlook, but on the other hand
Moody's view that TUI AG's liquidity remains somewhat constrained
at this time and still dependent on the capacity of Hapag-Lloyd
and Albert Ballin to repay their liabilities to TUI AG.  In this
regard, the recent measures are viewed as a positive step in this
direction.  Moody's believes that the improved environment for
shipping, as well as more actions at the Hapag-Lloyd level, could
be positive for the outlook or the rating of TUI AG over time.

The last rating action for TUI AG was implemented on September 17,
2009, when the Corporate Family Rating was lowered to Caa1 with a
negative outlook.  TUI AG's ratings were assigned by evaluating
factors Moody's believe are relevant to the credit profile of the
issuer, such as i) the business risk and competitive position of
the company versus others within its industry, ii) the capital
structure and financial risk of the company, iii) the projected
performance of the company over the near to intermediate term, and
iv) management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of TUI AG's core industry and TUI AG's ratings are
believed to be comparable to those of other issuers of similar
credit risk.

TUI, headquartered in Hanover, Germany, is Europe's largest
integrated tourism group, and currently retains a c.43% stake in
Hapag-Lloyd, which is a leading provider of container shipping
services.  In the first three quarters of FY2010 (to September),
the group reported revenues from continuing operations of EUR9.8
billion.


WESTLB AG: Formal Sale Process Due to Begin This Week
-----------------------------------------------------
Gerrit Wiesmann and James Wilson at the Financial Times report
that WestLB AG is being seen as a key part of any restructuring in
Germany's troubled Landesbanken sector, as the European Commission
has already demanded that the bank -- owned by the state of North
Rhine-Westphalia and local savings banks -- finds new owners by
the end of 2011.  The FT notes the change is required to meet a
condition for EU approval of state aid.

The FT relates a formal sale process for WestLB is due to begin
this week, coordinated by Friedrich Merz, a former senior member
of Chancellor Angela Merkel's Christian Democrats party.

However, WestLB and BayernLB last week announced exploratory talks
aimed at a merger that would create Germany's third-largest bank,
by assets, after Deutsche Bank and Commerzbank, the FT recounts.

According to the FT, Moody's Investors Service warned that such a
merger would offer BayernLB, the bigger bank, a limited strategic
fit and only a slight improvement of its franchise but could help
to keep WestLB in business.  It said there were potential long-
term benefits if a merger created a bigger Landesbank but warned
of liquidity and funding risks, the FT notes.

"The newly created Landesbank would have assets in excess of
EUR500 billion (US$674 billion), keeping its systemic relevance
high and implying a high probability of future government
support," the FT quoted Moody's as saying.

As reported by the Troubled Company Reporter-Europe on Sept. 22,
2010, Bloomberg News said Bayerische Landesbank and WestLB, two
German state-owned lenders that needed government aid during the
financial crisis, are examining a possible merger that would
create the country's third-biggest bank.  "The goal is to have a
joint understanding by the end of the year on whether a merger
makes economic sense," Munich-based BayernLB and Dusseldorf-based
WestLB said in a joint e-mailed statement to Bloomberg on
Sept. 20.

Bloomberg disclosed as part of its restructuring, WestLB has to
sell itself by the end of 2011 under conditions imposed by the EU
Commission.  The lender has received several bailouts, including
EUR3 billion (US$3.9 billion) in capital from Germany's Soffin
bank-rescue fund, Bloomberg noted.  It set up a separate bad bank
to rid itself of about a third of its assets, including toxic
securities, according to Bloomberg.

                           About WestLB

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on May 6,
2010, Moody's Investors said WestLB AG's 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.


WESTLB AG: Fitch Upgrades Individual Rating to 'D'
--------------------------------------------------
Fitch Ratings has maintained the Rating Watch Negatives on the
Long- and Short-term Issuer Default Ratings of Bayerische
Landesbank, HSH Nordbank AG, Landesbank Saar and WestLB AG.  In
addition, Fitch has maintained the RWNs on the Support Rating
Floors of all four banks.  At the same time, Fitch upgraded the
Individual Rating of WestLB to 'D' from 'E', and BayernLB's
Individual Rating to 'D' from 'D/E'.  A full rating breakdown is
provided at the end of this comment.

The four banks' LT IDRs remain at their Support Rating Floors,
which are based on Fitch's view of the extent to which the
respective German regional states (all rated 'AAA') would provide
support to their Landesbank in case of need.  The LT IDRs and
Support Rating Floors of BayernLB, HSH and WestLB were placed on
RWN in September 2009 to reflect their possible ownership changes
as well as related decreases in their importance to their
respective regional states.  The regional states have provided
substantial support in the form of capital injections and/or asset
guarantees after the banks suffered material impacts from the
financial crisis.  These support measures are currently subject to
a review process and pending approval by the European Commission
(EC), which is expected to communicate its decision in the coming
months.

Fitch expects to review the RWN on BayernLB's ratings when the EC
announces its decision on the bank's state aid or if BayernLB's
recently announced exploratory discussions with WestLB result in a
concrete merger plan.  WestLB's and HSH's ratings are likely to
remain on RWN until details of both banks' future ownership
structures become clear.  The RWN on SaarLB's IDRs is pending
Fitch's review of the long-term commitment and strategic
intentions of the regional state of Saarland ('AAA'), which
acquired a 25.2% stake in the bank from BayernLB in June 2010,
increasing the state's stake to 35.2% and reducing BayernLB's
stake to 49.9%.  Fitch expects to conclude this review in Q410.

The upgrade of WestLB's Individual Rating reflects the transfer of
about EUR77 billion of non-strategic assets and securitized
investments to specially created run-off institution Erste
Abwicklungsanstalt and the EUR3 billion capital injection by the
German Finanzmarktstabilisierungsfonds (SoFFin).  These measures
and the bank's return to profitability in H110 have substantially
reduced the risk that WestLB might need external support in the
short term.  However, Fitch considers that the bank's emergence as
a strong going concern remains uncertain.  Similarly, the agency
said that BayernLB's EUR10 billion capital injection and EUR4.8
billion asset guarantee received from the regional state of
Bavaria ('AAA') as well as the bank's return to profitability in
H110 have reduced the probability that it might need renewed
support.

At the same, Fitch affirmed HSH Nordbank's 'D/E' Individual
Rating.  Fitch would only consider an upgrade of the Individual
Rating once the bank demonstrated it was sustainably attracting
sufficient unsecured wholesale funding on competitive terms on its
own merit, in addition to materially reducing credit risk from its
cyclical asset base.

SaarLB's 'D' Individual Rating was not affected by these rating
actions.

The rating actions taken are:

Bayerische Landesbank:

  -- Long-term IDR: 'A+', maintained on RWN
  -- Short-term IDR: 'F1+', maintained on RWN
  -- Individual Rating: upgraded to 'D' from 'D/E'
  -- Support Rating: affirmed at '1'
  -- Support Rating Floor: 'A+', maintained on RWN

HSH Nordbank AG:

  -- Long-term IDR: 'A-', maintained on RWN
  -- Short-term IDR: 'F1', maintained on RWN
  -- Individual Rating: affirmed at 'D/E'
  -- Support Rating: '1', maintained on RWN
  -- Support Rating Floor 'A-', maintained on RWN

Landesbank Saar:

  -- Long-term IDR: 'A+', maintained on RWN
  -- Short-term IDR: 'F1+', maintained on RWN
  -- Support rating: affirmed at '1'
  -- Support Rating Floor: 'A+', maintained on RWN

WestLB AG:

  -- Long-term IDR: 'A-', maintained on RWN
  -- Short-term IDR: 'F1', maintained on RWN
  -- Individual Rating: upgraded to 'D' from 'E'
  -- Support Rating: '1', maintained on RWN
  -- Support Rating Floor: 'A-', maintained on RWN

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual Ratings and the prospect of external support
is reflected in Fitch's Support Ratings.  Collectively, these
ratings drive Fitch's Long- and Short-term IDRs.


* GERMANY: May Extend Bonus Caps at Bailed-Out Banks
----------------------------------------------------
Rainer Buergin at Bloomberg News reports that Germany's Finance
Ministry on Monday said authorities are considering extending
curbs on bonuses at banks that received government aid during the
financial crisis.

Bloomberg relates Germany in 2008 enacted caps on bonuses of
EUR500,000 (US$673,900) for executive-board members at
institutions that received government funds.  According to
Bloomberg, ministry spokesman Michael Offer said a clause in the
law governing the Soffin bank-rescue fund obliges those banks to
pay managers an amount that's "adequate" to their performance.

Bloomberg says Chancellor Angela Merkel faces pressure from
lawmakers to curb pay at banks such as Hypo Real Estate Holding AG
and Commerzbank AG that were rescued or aided by the state during
the financial crisis.

Bloomberg notes the Handelsblatt newspaper on Monday reported that
Leo Dautzenberg, finance spokesman for Merkel's Christian
Democratic Union, wants the government to "intervene in valid
contracts" with employees of such banks.


* GERMANY: Seeks to Reorganize Troubled Landesbanken Sector
-----------------------------------------------------------
Gerrit Wiesmann and James Wilson at The Financial Times report
that the German government believes it could take until spring for
the publicly-owned Landesbanken to agree the first steps of a
reorganization after the global financial meltdown and the
eurozone crisis.

Steffen Kampeter, deputy finance minister, told the FT that
consolidation was vital to "win back the confidence" of the
markets.  "I don't think we'll get anything definitive by year's
end.  But we'll see the contours by spring 2011," the FT quoted
Mr. Kampeter as saying.

The FT relates Mr. Kampeter and Joerg Asmussen, another deputy
finance minister, met with the Landesbanken and their owners --
Germany's state governments and the municipal savings banks -- on
Monday in Berlin.

The FT notes although Germany's previous government failed to push
forward consolidation in 2008, Mr. Kampeter said some of the seven
standalone banks were under new pressure and said "doing nothing
isn't an option" any longer.

The FT says the talks are being billed as a chance for the German
banking system to reduce its exposure to the Landesbanken, risky
wholesale institutions that have sometimes been tools of
industrial policy or patronage for regional and local politicians.


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


VERTESI EROMU: Hungary Seeks Extension of Subsidies Until 2014
--------------------------------------------------------------
MTI-Econews reports that daily Nepszabadsag on Saturday said that
Hungary's government wants to lobby Brussels for an extension of
subsidies for power plant Vertesi Eromu.

According to MTI, Vertesi Eromu has been receiving about HUF7
billion in subsidies a year since 2006 to support its
restructuring.  MTI notes Nepszabadsag said the subsidies expire
at the end of this year, but the government wants to extend them
until 2014.

The subsidies, as well as about HUF1 billion in monthly government
support to keep the plant solvent, have failed to make Vertesi
Eromu profitable, MIT discloses.

The company filed for bankruptcy protection in August, MTI
recounts.

MTI relates the newspaper said shutting down the plant, which
employs more than a thousand people, and recultivating the site
would cost taxpayers at least HUF40 billion,

Vertesi Eromu is a coal-fueled power plant.


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


ANGLO IRISH: Senior Bondholders Won't Share Debt Burden
-------------------------------------------------------
Brendan Keenan and Maeve Dineen at Irish Independent report that
the Irish government will not ask senior bondholders to share the
burden of Anglo Irish Bank's massive debts with taxpayers.

The government has always insisted that senior bondholders have
the same legal rights as depositors, Irish Independent notes.
According to Irish Independent, ministers believe it would be
impossible to negotiate even a voluntary reduction of debt because
bondholders would want depositors to share the loss.

Irish Independent says the government remains determined that
there will be no default or re-negotiation on senior Irish bank
bonds even where they are not guaranteed by the state.

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 17,
2010, Fitch Ratings affirmed Anglo Irish Bank Corporation Ltd.'s
Individual Rating at 'E'.  It also affirmed its ratings on the
bank's Lower Tier 2 Subordinated Notes at 'CCC' and Tier 1 Notes
at 'C'.

As reported by the Troubled Company Reporter-Europe on Sept. 15,
2010, Moody's Investors Service said that it is maintaining its
review for possible downgrade on the A3/P-1 deposit and senior
debt ratings, and on the Ba1 subordinated debt rating of Anglo
Irish Bank Corporation.  The junior subordinated debt is
downgraded to C from Caa2.  The backed-Aa2 rating (stable outlook)
on the government guaranteed debt, the C rating on the bank's tier
1 securities and the E bank financial strength rating -- mapping
to Caa1 on the long-term scale -- are unaffected by this rating
action.


ANGLO IRISH: Moody's Downgrades Rating on Senior Debts
------------------------------------------------------
Moody's Investors Service has downgraded the senior debt rating of
Anglo Irish Bank Corporation Limited by three notches to
Baa3/Prime-3 from A3/Prime-1, and is maintaining it on review for
possible downgrade.  At the same time, Moody's has downgraded the
dated subordinated debt held by Anglo Irish by six notches to Caa1
from Ba1 and has assigned a negative outlook.  The rating action
on this class of debt concludes the review that Moody's originally
initiated on December 8, 2009, and maintained on March 1, 2010,
following the downgrade to Ba1.

These ratings are unaffected by the rating actions:

  -- the A3/Prime-1 ratings on the bank's long- and short-term
     bank deposits, which remain on review for possible downgrade;

  -- the backed-Aa2 rating (stable outlook) and the backed-Prime-1
     rating on instruments and programs guaranteed by the Irish
     government;

  -- the C rating on the bank's junior subordinated debt and Tier
     1 securities; and

  -- the E bank financial strength rating, which maps to a
     Caa1 rating on the long-term scale.

                        Ratings Rationale

  Rationale for the Downgrade of the Senior Debt to Baa3/Prime-3

On September 8, 2010, the Irish government proposed a new plan for
Anglo Irish that stipulates splitting the bank into (1) a "Funding
Bank" to which all deposits will be transferred; and (2) an "Asset
Recovery Bank", which will retain the assets that are not
transferred to NAMA, together with the remaining liabilities,
including all rated debt.

"Moody's expects a continued asset quality deterioration in the
loan book of Anglo Irish that will require further government
support for the bank's liabilities," says Ross Abercromby, Vice
President and lead analyst for Anglo Irish at Moody's.  The rating
agency believes that the novation of the deposits into the FB
could increase the government's options to share the burden of
such support with other creditors that remain in the ARB.  Without
an explicit government guarantee for senior unsecured note
holders, Moody's believes that the ratings for these instruments
need to incorporate this greater marginal risk.  While Moody's
considers the likelihood of the government not supporting this
debt to be very small, this risk has been reflected in the three-
notch downgrade to Baa3 and will continue to be a focus of the
review for possible downgrade.  Moody's expects to receive further
clarity from (a) the Irish government's upcoming announcement of
further details of its plans for Anglo Irish over the coming
weeks, and (b) the European Commission's verdict on the proposed
restructuring.  Until such clarification is forthcoming, Moody's
review for possible downgrade will continue.  "In the absence of
explicit government guarantees, the senior unsecured debt ratings
could be further downgraded into sub-investment grade," says
Mr. Abercromby.

Moody's expects the Irish government's most likely strategy to be
the pursuit of an orderly wind-down of the ARB over a longer-term
horizon; this would follow a likely further capital injection in
coordination with the Central Bank's requirements.  In this
scenario, Moody's would expect senior debt to be supported.
However, the Baa3/P-3 ratings also incorporate a risk scenario
that could see senior note holders of the approximately EUR4.2
billion outstanding that is not covered by the Eligible
Liabilities Guarantee to be asked to share some of that burden --
for example, via a buyback at a value that is substantially below
par.  Moody's notes that such a buyback could be seen as a
distressed exchange.

"However, there is the potential for the senior debt ratings to be
upgraded if, following the reorganization, effective guarantees
are put in place by the Irish government" says Mr. Abercromby.

        Review Maintained on the A3/Prime-1 Deposit Ratings

Moody's is maintaining the review for possible downgrade on the
A3/Prime-1 bank deposit ratings of Anglo Irish.  The proposed
split of the bank will result in the deposits being novated to the
FB.  In Moody's view, it is highly likely that guarantee
arrangements will remain in place for these deposits.  The current
A3 rating reflects the 100% state ownership and Moody's view that
the deposit base of the bank continues to benefit from a very high
probability of systemic support.  The review process will
therefore continue to focus primarily on the potential support
from the Irish government and the final form of the bank.

             Downgrade of the Dated Subordinated Debt

Moody's notes that, in Ireland, as in most countries, the
authorities have so far not imposed losses on dated subordinated
debt outside of a liquidation scenario.  However, Moody's believes
that the possibility of greater burden-sharing at Anglo Irish has
significantly increased the risk of impairments to these
securities.  This is because of these factors: (i) the continuing
need for further capital injections as the non-NAMA loan book
deteriorates; and (ii) as the ARB will be wound down, the
capitalization of the entity is, in Moody's view, likely to be
relatively thin -- thereby increasing the likelihood that the
dated subordinated debt may be required to absorb losses.  In
addition, the maturity structure of the dated subordinated debt is
such that a large proportion does not mature until 2017 when the
vast bulk of the senior debt will already have matured.  In
Moody's opinion, this increases the likelihood that this class of
debt may be required to absorb losses.  The negative outlook
reflects that, if any losses were to be imposed on the debt, then
the rating could be adjusted downwards in line with the projected
loss.

Moody's aims to complete its review of the bank's deposit and
senior debt ratings following the clarification of any support
mechanisms for ARB's liabilities, even if some final uncertainty
remains until the European Commission has approved the bank's
restructuring plan.

                     Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, public information, confidential
and proprietary Moody's Investors Service's information.

Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of maintaining a credit rating.

The rating has been disclosed to the rated entity or its
designated agents and issued with no amendment resulting from that
disclosure.

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


AWAS AVIATION: Moody's Assigns 'Ba2' Rating on Senior Notes
-----------------------------------------------------------
Moody's Investors Service assigned a provisional long-term rating
of (P)Ba2 to the US$ senior secured notes of AWAS Aviation Capital
Limited, due 2016.  The other ratings of AWAS (corporate family
rating: Ba3 and term loan rating: Ba2) are not affected by the new
transaction.  The outlook on all ratings is stable.

                        Ratings Rationale

The Notes will be secured by a perfected security interest on the
aircraft as well as an assignment of the leases and pledge of the
ownership interests of the aircraft owning entities.  The AWAS
subsidiaries that own assets pledged in support of the Notes will
guarantee the Notes jointly and severally on a senior secured
basis.  AWAS will use the proceeds of the debt issuance to repay
the current facilities provided by JP Morgan, for the purchase of
four new aircraft and for general corporate purposes.  As a result
of this a portfolio of 46 aircraft will be unencumbered and in
Moody's view, this will help to improve the financial and
operational flexibility of the company.  This further supports the
Ba3 corporate family rating.

The (P)Ba2 rating assigned to the Notes is one notch above the Ba3
corporate family rating of AWAS, based upon terms that
meaningfully lower secured creditors' risk of loss.  Based on the
draft terms and conditions of the Notes, these include a maximum
loan-to-value covenant of 60% that is to be determined semi-
annually, as well as the granularity in the dynamic collateral
pool that will consist of 60 aircraft and related leases that are
on lease to 36 lessees globally.  AWAS expects that the 4 new
aircraft will be placed with 3 further lessees.  The collateral
securing the Notes will also be subject to concentration limits
relating to aircraft type (wide- or narrow-body) and model.

The (P)Ba2 rating also reflects the use by AWAS of secured
recourse debt in its capital structure as after incorporating the
proceeds of the Notes secured recourse debt will represent
approximately 40% of AWAS' total indebtedness.  If AWAS were to
increase the proportion of secured recourse debt that features
similar asset protection and terms as the proposed transaction and
the existing term loan (rated Ba2), the ratings for all such
secured recourse debt would likely converge with the firm's
corporate family rating because the differentiation among
creditors would be lower.  If secured recourse funding as a
proportion of AWAS' total funding structure remains at similar
levels then an upgrade of the Notes would likely occur only as a
result of an upgrade of the Ba3 corporate family rating.

The rating of the Notes also incorporates the fundamental credit
characteristics of AWAS.  These factors include AWAS' strong
capital levels relative to many peers operating in the aircraft
leasing sector, the overall balance among its portfolio risk
exposures (geographic, aircraft type and model, and customer), and
its experienced management team.  As constraints, the rating also
reflects AWAS' monoline business model and associated low revenue
diversification, the operating and financial risks relating to its
strategy to aggressively grow its commercial aircraft fleet, and
the company's high reliance on secured funding that limits its
operational and financial flexibility.

The rating of the notes is provisional and represents Moody's
preliminary opinion only.  Upon the completion of the issue and a
conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the notes.  A definitive
rating may differ from a provisional rating.

The last rating action on AWAS was on May 17, 2010, when Moody's
assigned a Ba3 corporate family rating to AWAS and a Ba2 rating to
the Term Loan.

Moody's rating of AWAS's secured notes is also based upon an
analytical framework for finance companies that determines the
rating "notches" assigned to a company's various classes of debt
versus its corporate family rating, considering: 1) the relative
proportion of each distinct class of debt within the company's
capital structure; and 2) the relative quality and adequacy of
asset coverage associated with each class of debt.  A class of
debt is defined by terms concerning seniority, pledge of security,
guarantees or other support, and covenants.  This framework does
not apply to securitizations and hybrid debt instruments.  A
single class of debt that represents a preponderance of a
company's total debt will typically be rated the same as the
company's corporate family rating.  A class of debt that
constitutes less than a preponderance of a company's total debt
can be rated as many as two notches higher or two notches lower
than the company's corporate family rating, depending upon the
strength or weakness of its creditor protections, nominally and in
comparison to other debts issued by the company.

AWAS Aviation Capital Limited, headquartered in Dublin, Ireland,
is a major owner and lessor of commercial aircraft.

                     Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, public information, confidential
and proprietary Moody's Investors Service's information.

Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of assigning a credit rating.

The rating has been disclosed to the rated entity or its
designated agents and issued with no amendment resulting from that
disclosure.

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


SUNDRIVE PHARMACY: Interim Examiner Appointed
---------------------------------------------
Galwaynews.ie reports that an interim examiner has been appointed
to Sundrive Pharmacy Limited (McLoughlin's) Westside Shopping
Centre and Michael McLoughlin Pharmacy, Gateway Shopping Centre
Knocknacarra.

The petition by a subsidiary of pharmaceutical firm United Drug
comes two days after Bank of Scotland Ireland had a receiver
appointed to the firms over debts of EUR7.2 million, galwaynews.ie
relates.

According to galwaynews.ie, the supplier has told the High Court
it's prepared to invest in the two pharmacies, which owes it
around EUR5 million.

The two Galway pharmacies employ 55 people, galwaynews.ie
discloses.


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


SAECURE 9: Moody's Assigns 'Ba2 (sf)' Rating on Class F Notes
-------------------------------------------------------------
Moody's Investors Service has assigned definitive credit ratings
to this class of notes issued by SAECURE 9 B.V.:

  -- Aaa (sf) to Euro 180,000,000 Senior Class A1 Mortgage-Backed
     Notes 2010 due 2092

  -- Aaa (sf) to Euro 661,500,000 Senior Class A2 Mortgage-Backed
     Notes 2010 due 2092

  -- Aa1 (sf) to Euro 13,500,000 Mezzanine Class B Mortgage-Backed
     Notes 2010 due 2092

  -- Aa1 (sf) to Euro 13,500,000 Mezzanine Class C Mortgage-Backed
     Notes 2010 due 2092

  -- Aa3 (sf) to Euro 13,500,000 Junior Class D Mortgage-Backed
     Notes 2010 due 2092

  -- A3 (sf) to Euro 18,000,000 Junior Class E Mortgage-Backed
     Notes 2010 due 2092

  -- Ba2 (sf) to Euro 9,000,000 Subordinated Class F Notes 2010
     due 2092

                        Ratings Rationale

The transaction represents a securitization of Dutch prime
mortgage loans backed by residential properties located in the
Netherlands and originated by AEGON Levensverzekering N.V.  The
portfolio will be serviced by AEGON Leven.

The ratings of the notes take into account the credit quality of
the underlying mortgage loan pool, from which Moody's determined
the MILAN Aaa Credit Enhancement and the portfolio expected loss,
as well as the transaction structure and any legal considerations
as assessed in Moody's cash flow analysis.

The expected portfolio loss of 0.65% of the portfolio at closing
and the MILAN Aaa required Credit Enhancement of 5.0% served as
input parameters for Moody's cash flow model, which is based on a
probabilistic lognormal distribution as described in the report
"The Lognormal Method Applied to ABS Analysis", published in
September 2000.

The key drivers for the MILAN Aaa Credit Enhancement number, which
is slightly lower than other prime Dutch RMBS transactions closed
in 2010, are (i) the weighted average loan-to-foreclosure-value of
95.1%, which is in line with other Dutch RMBS transactions, (ii)
the proportion of interest-only loans parts (39.7%), (iii) the
weighted average seasoning of 4.8 years, and (iv) the benefit from
a guarantee from NHG for 16.7% of the current balance of the pool.

The key drivers for the portfolio expected loss are (i) the
performance of the seller's precedent transactions, (ii)
benchmarking with comparable transactions in the Dutch market and
(iii) the proportion of loans parts benefiting from a guarantee
from NHG.  Given the historical performance of the Dutch RMBS
market and the originator's precedent transactions (in which pools
with similar risk characteristics have been securitized), Moody's
believes the assumed expected loss is appropriate for this
transaction.

Another key characteristic of this transaction is that
approximately 44.9% of the portfolio is linked to life insurance
policies (life mortgage loans), which are exposed to set-off risk
in case an insurance company goes bankrupt.  The seller has
provided loan-by-loan insurance company counterparty data, whereby
100% of all life insurance-linked products are linked to insurance
policies provided by the seller, AEGON Leven.  AEGON Leven is not
rated by Moody's, however it is a subsidiary of AEGON N.V. (A3).
Moody's has considered the rating of the ultimate parent company,
AEGON N.V.  (A3), and stress tested rating levels to measure the
impact on the ratings of the notes.

The rating addresses the expected loss posed to investors by the
legal final maturity of the notes.  In Moody's opinion, the
structure allows for timely payment of interest and principal with
respect of the notes by the legal final maturity.  Moody's ratings
only address the credit risk associated with the transaction.
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

The V-Score for this transaction is Low/Medium, which is in line
with the V-Score assigned for the Dutch RMBS sector, mainly due to
the fact that it is a standard Dutch prime RMBS structure for
which Moody's have over 10 years of historical performance data.
The primary source of uncertainty surrounding Moody's assumptions
is regarding operational risks relating to the servicing
arrangement, given that the contractual servicer (AEGON Leven) is
not rated by Moody's, and that there are no back-up arrangements
for the servicing and cash management.  This risk is mitigated to
a certain extent by the fact that AEGON Leven's ultimate parent
company AEGON N.V. is rated A3 by Moody's.

V-Scores are a relative assessment of the quality of available
credit information and of the degree of dependence on various
assumptions used in determining the rating.  High variability in
key assumptions could expose a rating to more likelihood of rating
changes.  The V-Score has been assigned accordingly to the report
"V-Scores and Parameter Sensitivities in the Major EMEA RMBS
Sectors" published in April 2009.

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 0.65% of current balance to 1.95 % of current
balance and if the MILAN Aaa Credit Enhancement was increased from
5.0% to 8.0%, the model output indicates that the class A1 and
class A2 notes would still achieve Aaa.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.  The
analysis assumes that the deal has not aged and is not intended to
measure how the rating of the security might migrate over time,
but rather how the initial rating of the security might have
differed if key rating input parameters were varied.  Parameter
Sensitivities for the typical EMEA RMBS transaction are calculated
by stressing key variable inputs in Moody's primary rating model.

Moody's Investors Service received and took into account one or
more third party due diligence report on the underlying assets or
financial instruments in this transaction and the due diligence
reports had a neutral impact on the rating.

                       Ratings Disclosures

The rating has been disclosed to the rated entity or its
designated agents and issued with no amendment resulting from that
disclosure.

Information sources used to prepare the credit rating are these:
parties involved in the ratings, parties not involved in the
ratings, public information, confidential and proprietary Moody's
Investors Service information.

Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of assigning a credit rating.


===============
P O R T U G A L
===============


* PORTUGAL: Construction Sector Bankruptcies Reach 3,900
--------------------------------------------------------
Joao Lima at Bloomberg News reports that Jornal de Negocios,
citing Reis Campos, president of the Construction and Real Estate
Confederation, said Portugal's construction industry has lost
3,900 companies due to bankruptcies.

According to Bloomberg, the Portuguese newspaper said the industry
has been affected by delays in public works and a decline in the
residential housing market.


* PORTUGAL: Failure to Address Fiscal Issues Pushes Up Debt Yields
------------------------------------------------------------------
Brian Blackstone at Dow Jones Newswires reports that Portugal's
finance minister said the government would press ahead with plans
to cut its budget deficit, despite threats by opposition lawmakers
to block further tax increases.

Dow Jones relates uncertainty about Portugal's ability to take
extra fiscal steps is pushing up yields on the country's debt, a
sign of rising investor concern.

Portugal's government, lacking an overall majority in parliament,
needs some opposition support to push through its policies, Dow
Jones notes.  According to Dow Jones, the opposition Social
Democratic Party said last week said it won't approve the
government's budget if it includes fresh tax increases.
Portuguese Prime Minister Jose Socrates on Friday warned that if
the budget was not to be approved, the government wouldn't be able
to function, Dow Jones recounts.


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


ALFA BOND: Fitch Assigns 'BB' Rating on Senior Unsecured Loan
-------------------------------------------------------------
Fitch Ratings has assigned Alfa Bond Issuance plc.'s US$1bn issue
of 7.875% senior unsecured limited recourse loan participation
notes, due 25 September 2017, a final Long-term foreign currency
'BB' rating.

The proceeds will be used solely for financing a loan to OJSC
Alfa-Bank, which is rated Long-term foreign currency Issuer
Default 'BB' with a Stable Outlook, Short-term IDR 'B', Individual
'C/D', Support '4', Support Rating Floor 'B' and National Long-
term 'AA-(rus)' with a Stable Outlook.  The terms of the issue
provide a put option to bondholders; a put event may be triggered
by a change of control in ABH Financial Limited (the parent
company of Alfa Banking Group, of which OJSC Alfa-Bank is the main
operating entity) if followed by the downgrade of the lowest of
the then current Long-term ratings by a respective rating agency
due to such change of control.  The loan is guaranteed by ABH
Financial Limited.

The lender's claims in relation to the repayment of the loan will
rank at least equally with the claims of other senior unsecured
creditors, save those preferred by relevant laws (bankruptcy,
liquidation, etc).  Under Russian law, the claims of retail
depositors rank above those of other senior unsecured creditors.
Retail deposits accounted for 32.8% of OJSC Alfa-Bank's total
liabilities at end-H110, according to the bank's International
Financial Reporting Standards accounts.

OJSC Alfa-Bank is the largest privately-owned bank in Russia by
assets, although its market shares are modest, reflecting the
fragmented nature of the sector.  The group is ultimately owned by
six individuals, with the largest stakes held by Mikhail Fridman
(36.47%) and German Khan (23.27%).


BANK SOYUZ: S&P Affirms 'B-' Long-Term Counterparty Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
Russia national scale rating on Bank Soyuz to 'ruBBB' from 'ruBBB-
' and affirmed its 'B-' long-term and 'C' short-term counterparty
credit ratings.  The outlook is stable.

"The raising of the Russia national scale rating reflects an
improvement in the bank's financial profile, in particular its
funding and capital, due to substantial ongoing funding and
capital support from the Russian government's State Corporation
Deposit Insurance Agency," said Standard & Poor's credit analyst
Victor Nikolskiy.

Bank Soyuz's creditworthiness is still, however, constrained by
the bank's weak asset quality, uncertainties about future business
development in a risky, volatile, and increasingly competitive
operating environment, and still weak profitability.

Although the bank is no longer under temporary administration, it
remains under financial recovery status and is managed by the DIA,
a government agency that is responsible for depositor protection
in Russia.  The aim of the DIA is to manage the bank back to
financial and operational health by 2014.  Bank Soyuz is currently
owned by the DIA (50.00000001%), and Ingosstrakh Insurance Co.
(BBB-/Negative/--; Russia national scale 'ruAA+') (49.99999997%).

In July 2010, the DIA finalized the purchase of Russian ruble 20
billion of investment assets from Bank Soyuz, covering the
latter's problem loans.  Although this eased the bank's asset
quality problems, the status of the loan portfolio remains weak,
with about 40% of loans in some form of delinquency as of July 7,
2010.  These efforts to improve the bank's asset quality, together
with substantial funding and capital injections, have led to a
two-notch improvement in the bank's stand-alone credit profile.
S&P believes that the DIA will continue to support the bank
financially and thus consider this to be "ongoing" support.
Accordingly, the counterparty ratings no longer incorporate any
uplift above the bank's SACP.

S&P remain concerned about Bank Soyuz's future business
development and business prospects.  S&P considers the bank's
ambition to double in size over the next three years to be a risky
strategy, particularly given tough competition for creditworthy
borrowers in Russia and the bank's need to strengthen its risk
management procedures and controls.  However S&P take certain
comfort from the fact that the DIA will continue to closely
monitor the bank and be involved in its development for at least
three years.

The bank's funding and liquidity have improved due mainly to
ongoing and substantial support from the DIA (about 50% of total
liabilities).  In addition, the bank maintains a liquid asset
cushion of about 30% of total assets and does not have any
significant debt redemptions until 2014.

The stable outlook reflects S&P's expectation that the DIA will
continue to provide funding support to Bank Soyuz.


EUROKOMMERZ HOLDING: Moody's Withdraws 'C' Issuer Ratings
---------------------------------------------------------
Moody's Investors Service and Moody's Interfax Rating Agency have
withdrawn all ratings of Eurokommerz Holding Limited due to the
lack of adequate information to maintain these ratings.  Prior to
the rating withdrawal, Eurokommerz's ratings were: long-term local
and foreign currency issuer ratings of C, and short-term local and
foreign currency ratings of Not Prime -- each with a stable
outlook.  Moody's Interfax Rating Agency had maintained a C.ru
National Scale Rating with no specific outlook.  Moscow-based
Moody's Interfax Rating Agency is majority-owned by Moody's, a
leading global rating agency.

                        Ratings Rationale

The credit ratings have been withdrawn because Moody's Investors
Service believes it has insufficient or otherwise inadequate
information to support the maintenance of the credit ratings.

Moody's notes that, as of the date of the ratings withdrawal,
Eurokommerz had no outstanding debts rated by Moody's.

Moody's previous rating action on Eurokommerz was on June 25,
2009, when Moody's downgraded the long-term ratings to C from Caa2
and assigned a stable outlook.  At that time, Moody's Interfax
also downgraded the NSR to C.ru from B2.ru with no specific
outlook.

Based in Moscow and prior to its default, Eurokommerz was the
largest company in the Russian factoring sector.  Eurokommerz
reported total consolidated assets of US$1.9 billion and total
equity of US$454 million under IFRS (unaudited) as of June 30,
2008.

                     Regulatory Disclosures

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


NOVOROSSIYSK PJSC: Moody's Reviews 'Ba1' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has placed the Ba1 Corporate Family of
PJSC Novorossiysk Commercial Seaport and the Ba1 debt rating of
the Novorossiysk Port Capital S.A. US$300 million 7% Loan
Participation Notes due 2012, together with all associated
ratings, on review for downgrade.

This rating announcement follows the statement by NCSP that it is
preparing a transaction to acquire 100% ownership of Primorsk
Commercial Port LLC, a key port on Russia's Baltic coast and the
export point for Russia's Baltic oil pipeline system.  No details
as to likely acquisition cost or means of finance have been made
public at this time.  A condition to the acquisition is that a
controlling stake in NCSP is sold to OAO Transnet and investment
group Summa Capital, an investment vehicle for private interests,
who are the current owners of PCP.

The rating review will focus on the cost of the acquisition, the
additional debt that NCSP may be required to take on to finance
it, the post acquisition ownership structure, and NCSP's business
plan for PCP together with the integration risks associated
therewith.  Moody's notes that the combined transaction is subject
to approval by the Russian Federal Antimonopoly Service and the
Government Commission for Control of Foreign Investments in the
Russian Federation, as well as NCSP's Board of Directors.

Moody's also notes the publication of a Presidential Decree dated
18 June 2010 which notes that the Russian Government has removed
NCSP from the list of strategic assets, and the Prime Ministerial
Decree dated 4 August 2010 stating that the Russian Government's
shares in NCSP may be disposed of as part of a projected
Government privatization program.  Consequently, as part of this
rating review, Moody's will consider whether it is still
appropriate to provide a one-notch uplift to NCSP's rating to
reflect the possibility of extraordinary Government support if
this were ever required.

In accordance with Moody's standard practices for managing ratings
that may transition due to M&A activity, the rating will likely
remain on review, with the review being concluded and the issuer's
ratings moved to their final level once the transaction is
complete, or where completion is subject to procedural delay only,
i.e. where it is substantially complete.  Nevertheless, Moody's
will endeavor to give guidance as to where the post-transaction
rating may fall as information becomes publicly available.

Moody's also highlights that the Notes contain a change of control
covenant which may be triggered, depending on how the transaction
is structured, if the transaction proceeds.  Consequently, if the
transaction is to proceed, NCSP may need to obtain the necessary
consent of Noteholders or redeem the Notes in accordance with
their terms.

NCSP's Ba1 Corporate Family Rating reflects a fundamental credit
quality of Ba2 (expressed as a Baseline Credit Assessment of 12)
together with one rating notch uplift to reflect the ownership of
the Government of the Russian Federation, assessed in accordance
with Moody's rating methodology for Government Related issuers.
NCSP's Ba2 equivalent Baseline Credit Assessment reflects (i) its
position as Russia's largest port and its successful transition
over the last few years to a more modern provider of bulk cargo
and container handling capacity, (ii) its effective rate charging
framework, (iii) its moderate capital expenditure plans and
possible investment strategy and (iv) its moderate debt leverage
but relatively early debt maturities.

In accordance with Moody's rating methodology for Government
Related Issuers, the Ba1 final rating is a combination of these
inputs (1) a Baseline Credit Assessment of 12 (which equates to a
Ba2 rating on the Moody's rating scale), (2) the Baa1 local
currency rating of the Government of the Russian Federation, (3)
Moderate dependence and (4) Low support.

NCSP's rating is somewhat constrained by its location in Russia
and its consequent exposure to the geopolitical risks associated
with operating in that country.  Consequently, Moody's would
expect to see a longer track record of operations at steady state
with no evidence of negative political or other country-related
external pressures before NCSP was considered for an investment
grade credit rating.

Nevertheless, NCSP is currently considered very well positioned in
its rating category and has headroom to absorb increased
indebtedness.  Therefore if the transaction does not proceed but
Moody's considers that rating uplift for Government ownership is
no longer justified, there may be an equalization of the Baseline
Credit Assessment and the final rating at Ba1.

These ratings have been placed on review for downgrade by this
rating announcement:

PJSC Novorossiysk Commercial Seaport:

* Corporate Family Rating (Domestic Currency) -- Ba1 / Aa1.ru
* Corporate Family Rating (Foreign Currency) -- Ba1
* Probability of Default Rating -- Ba1

Novorossiysk Port Capital S.A.:

* US$300 million 7% Loan Participation Notes due 2012 -- Ba1

* US$300 million 7% Loan Participation Notes due 2012 -- LGD-4
  (52%)

NCSP's ratings were assigned by evaluating factors that Moody's
believes are relevant to the credit profile of the issuer, such as
(i) the business risk and competitive position of the issuer
versus others within its industry or sector; (ii) the capital
structure and financial risk of the issuer; (iii) the projected
performance of the issuer over the near to intermediate term; and
(iv) the issuer's history of achieving consistent operating
performance and meeting budget or financial plan goals.  These
attributes were compared against other issuers both within and
outside of NCSP's core peer group.  Moody's believes that NCSP's
ratings are comparable to ratings assigned to other issuers of
similar credit risk.

PJSC Novorossiysk Commercial Sea Port is a company providing
stevedoring services at the Port of Novorossiysk located on
Russia's Black Sea Coast.  It had consolidated revenues of US$675
million for year ended December 31, 2009, and total assets of
US$1.36 billion as at that date.


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


CATHCO PROPERTY: Goes Into Administration; 450+ Jobs at Risk
------------------------------------------------------------
Cathco Property Group's more than 450 construction and retail jobs
are under threat after the company went into administration, North
Wales News reports.

According to the report, Cathco Property Group's projects -- to
build a Tesco store and shops on Station Yard in Denbigh -- that
was due to begin over the summer are now in the hands of Begbies
Traynor administrators.  The report relates that planning
permission was granted by Denbighshire County Council over two
years ago, but the former Kwik Save site has lain empty ever
since.

The report notes that Cathco's demise came as Denbighshire council
received a planning application for the erection of another Tesco
store and filling station in nearby Prestatyn.

"Begbies Traynor, the corporate rescue and recovery business, can
confirm Mark Fry and Nigel Nutting were appointed Joint
Administrators of Cathco Property Holdings Limited on
September 16.  They are currently assessing the company's affairs
and will be able to comment further in due course," the report
quoted an unnamed Begbies Traynor spokesman as saying.

The report says that community leaders and residents in Denbigh
were devastated at the news and concerned about the possible loss
of so many jobs.  However, the report relates, they were confident
the development would go ahead as planned.

Headquartered in Leicester, Cathco Property Group is the company
behind a multi-million shopping complex in Denbigh.


CONNAUGHT PLC: Centrica's British Gas Buys Gas & Electricity Biz
----------------------------------------------------------------
Centrica's British Gas unit had bought Connaught PLC's gas and
electricity businesses, London South East reports.  The report
relates Centrica said that the assets of Connaught's trading wing
Connaught Compliance, which are costing GBP11.2 million cash,
would add 400 gas boiler and electrical engineers and more than
20,000 customer contracts to British Gas.

According to London South East, Connaught PLC's assets have been
picked off by rivals since it went into administration earlier
this month.  The report notes British social housing maintenance
company, Mears, said that it was on the hunt to pick up more
contracts previously held by Connaught PLC and pursue
acquisitions.  London South East relates that Builder Morgan
Sindall's social housing unit Lovell had bought the bulk of
Connaught's social housing contracts and assets.

                      About Connaught plc

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.


DUNDEE FOOTBALL CLUB: May Go Into Administration Again
------------------------------------------------------
Robert Thomson at Mail Online reports that Dundee Football Club
could be plunged into administration for the second time in just
seven years after it emerged they owe the taxman GBP250,000.

According to the report, the club has fallen behind in payments
over the last 19 months and has been hit by a demand for the
balance to be cleared immediately.  The report relates Director
Calum Melville has revealed the club could call in the
administrators within weeks.

Mr. Melville, Mail Online reports, claims he has offered to pay
GBP100,000 now, but this has been rejected out of hand by HM
Revenue and Customs.  The report relates Mr. Melville attempted to
resign from the club's board after failing to appear at an
employment tribunal involving former Dundee manager Jocky Scott.

Mail Online notes that his fellow board members have refused to
comment on his position following two emergency meetings.

"Dundee FC is in a hole with HMRC. We have been in arrears for 19
months and they are demanding full payment, which is around
GBP250,000.  We have offered GBP100,000, but that has been
rejected.  I have also offered to pay the full amount next May and
that has also been rejected.  My feeling is that HMRC will write
to us in the next week and tell us their intentions.  There is a
very distinct possibility of the club going into administration,"
the report quoted Mr. Melville as saying.


KSHOCOLAT LTD: Aims for Resurgence With New Brand Manager
---------------------------------------------------------
Kshocolat Limited's owners, South Wales-based Bon Bon Buddies,
have hired Kate Methuen as brand manager to breathe new life into
the company following its reprieve from administration earlier
this year, The Drum reports.

As reported in the Troubled Company Reporter-Europe on March 5,
2010, Bon Bon Buddies acquired certain assets and intellectual
property of Kshocolat Ltd. from the administrators, RSM Tenon, for
an undisclosed sum.

According to The Drum, Ms. Methuen's duties will include reviewing
and refreshing the brand, establishing it's positioning,
developing growth strategies and coming up with a new product
range for 2011.

The report notes that Bon Bon Buddies has plans to increase
distribution of Kshocolat Limited -- currently sold in upmarket
retailers including John Lewis and Booths -- by increasing its
presence in the European market.  It is also keen to boost the
brand's online sales, the report adds.

Kshocolat Limited produces luxury chocolates.


MELDEX INTERNATIONAL: Goes Into Administration
----------------------------------------------
Meldex International has gone into administration with losses of
GBP74 million, Cambridge News reports.

The report relates that the administrators are working with the
directors to sell the firm's main trading subsidiary, BioProgress
Technology, as a going concern and its business are unaffected.

"The company's recent past has not been pretty.  Its last reported
accounts showed losses of GBP74 million, caused largely by write-
offs of bad investments made by the previous directors," Cambridge
News quoted Chris McKay, of administrators McTear Williams & Wood,
as saying.

According to the report, the company floated on AIM in 2003 with a
market capitalization of GBP16 million and reached a high of
GBP150 million to become the darling of the AIM market.  In 2005,
the report notes, the shares were the most traded on AIM.
However, Cambridge News relates, after a series of disastrous
investments a new management team (including the return of Barry
Muncaster) was bought in January 2009 to try and turn the
company's fortunes around.

Having spent a few months restructuring the business, new funds
were introduced from existing shareholders and creditors in
September 2009, the report says.

"What we found on our arrival was quite a shock.  The actions of
the previous directors left the company little choice but to
pursue them through the courts," Cambridge News quoted Mr.
Muncaster as saying.

The report notes that this proved to be a highly costly action.
Recently, Cambridge News relates, previously unknown liabilities
have resulted in the company no longer being able to meet its
debts.

For those who put new money into the company last year under a
fresh issue of loan notes, there is some hope, the report
discloses.  The money advanced was secured over the assets of the
company and any sale of the subsidiary should result in funds
being returned to the loan note holders, Cambridge News adds.

Headquarter in Cambridge Science Park, Meldex International, via
BioProgress Technology, is involved in developing non-gelatin
edible films for the pharmaceutical, healthcare and recreational
industries -- in other words, pill-coatings for vegetarians.


MIDLAND STEEL: Placed Into Administration; Cuts 45 Jobs
-------------------------------------------------------
Midland Steel Structures has been placed into administration.

The company has been forced to axe 45 jobs this week after
suffering a "severe" drop in orders, Coventry News reports.  The
report relates that it is believed public sector cuts could have
pushed the struggling firm over the edge.

According to Coventry News, the staff delivered the devastating
blow, with one worker claiming the news came as "a complete
shock".  The report relates that bosses at the company have
retained 15 workers for existing contracts.

Headquartered in Binley Industrial Estate, Midland Steel
Structures is a construction firm that was behind some of the
biggest building projects in Coventry city.


ROYAL BANK: Cuts 500 Back-Office Jobs at Investment Banking Unit
----------------------------------------------------------------
Patrick Jenkins at The Financial Times reports that Royal Bank of
Scotland has begun the process of shedding a further 500 back-
office staff in its investment banking unit, as the group
continues to cut costs.

The FT relates four weeks ago, RBS unveiled a plan to cut 3,500
back-office jobs supporting its high-street operations.

According to the FT, together the cuts take to more than 27,000
the number of staff cut since Stephen Hester took over as chief
executive of the UK bank close to two years ago.

The FT notes that although the latest RBS cuts hit back-office
staff, rather than front-office trading staff, bank insiders say
they are braced for further front-line cuts if the trading
environment does not pick up.

RBS's latest cuts account for about 3% of the investment bank's
staff, the FT discloses.  Most but not all of the job losses will
come in London, the FT states.

                            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, were unaffected.


ROYAL BANK: Sells Chilean Banking Business to Nova Scotia
---------------------------------------------------------
Perry Gourley at The Scotsman reports that Royal Bank of Scotland
has agreed to the sale of a Chilean banking business acquired as
part of its controversial ABN Amro deal.

According to The Scotsman, Canada-based Bank of Nova Scotia is
buying RBS's wholesale banking operations in Chile, plus around
US$900 million (GBP570 million) of assets, for an undisclosed sum.

The deal is the latest in a string of global sales undertaken as
part of the bank's sweeping disposal program, The Scotsman 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, were unaffected.


SCREEN EAST: Blighty's Elstree Fights to Save Regional Funds
------------------------------------------------------------
Blighty's Elstree Studios has launched a campaign to keep an
estimated GBP4 million (US$6.3 million) in funds held by Screen
East in the region, Variety reports.

According to the report, following announcements that a
conservator had been appointed to take Screen East into
administration, Elstree topper Roger Morris suggested that the
fund could be run from Elstree, which is housing "Sherlock Holmes
2."  The report relates Mr. Morris called on other studios and
production companies to join forces to protect the fund money.

"This money has to be kept in the region," Variety quoted Mr.
Morris as saying.  "If you take into account the match-funding it
would draw, you're looking at potentially losing around GBP12
million ($19 million) of production spend for the east of
England," he added.

Mr. Morris, the report notes, also said that in light of the
recent announcement of the closure of the U.K. Film Council,
protecting regional funds was paramount, particularly as funds
from Screen East would provide "an essential bridge between the
film world and the services needed to support it."

A creditors meeting is due to take place on October 5.

As reported in the Troubled Company Reporter-Europe on
September 13, 2010, Hollywood Reporter said that Screen East has
gone into administration amid allegations that one of its
executives has run off with the money.  The agency's finance
manager, Melvin Welton, has been arrested on suspicion of theft by
local police, the report disclosed.

Screen East is a government-backed agency set up to support
filmmaking in the East of England.


SHEFFIELD WEDNESDAY: Receivership Likely If Chairman & CEO Leave
----------------------------------------------------------------
Sheffield Wednesday Football Club Chairman Howard Wilkinson said
that the club would go into receivership if he and Chief Executive
Nick Parker left Hillsborough, BBC News reports.

The report relates that the pair faced protests from fans after
September 25's 1-0 defeat by Southampton -- the Owls' fourth
consecutive defeat.

"If Nick and I walk away, and both of us have got a lot of reasons
to walk away, the club would be in receivership next week," BBC
News quoted Mr. Wilkinson as saying.  "That is the end of the road
if that happens, or the beginning of the end," he added.

According to the report, Mr. Wilkinson, who managed Sheffield
Wednesday between 1983 and 1988, returned to Hillsborough in
January in a non-paid football advisory role.  The report relates
that he was appointed interim chairman in May following the
departure of Lee Strafford, who resigned after the Owls were
relegated from the Championship.

Sheffield Wednesday, BBC News notes, were handed a winding-up
order by HM Revenue and Customs in July over an unpaid tax bill
but reached an agreement over the outstanding GBP1.1 million fee
earlier this month.  The report relates that the club is now
working to find investors to help ease the club's debts of more
than GBP20 million.

                  About Sheffield Wednesday

Sheffield Wednesday Football Club is a football club based in
Sheffield, South Yorkshire, England, who will compete in the
Football League One in the 2010/11 season, in England.  Sheffield
Wednesday is one of the oldest professional clubs in the world and
the third oldest in the English league.


TAYMOUTH CASTLE: Potential Buyer Emerges for Estate
---------------------------------------------------
London-based investment firm, Meteor Asset Management, confirmed
that they are in advanced talks over the purchase of Taymouth
Castle Estate, which slumped into administration last year, STV
News reports.  The report relates that Taymouth Castle Estate was
put on the market last year after plans to turn property into a
leisure resort collapsed.

According to the report, Meteor Asset said that a deal could be
finalized within the next few months.  If successful, the report
relates, they will continue to develop the property as a luxury
hotel, golf and residential complex.

Taymouth Castle Estate is a 400-acre property in Perthshire.


* UK: Inquiry to Look Into Banks' Retail & Investment Operations
----------------------------------------------------------------
BBC News reports that the issue of whether banks' retail and
investment operations should be split is to be looked at by a
government inquiry into the banking sector.

The reform is one of a number of options being considered by the
Independent Commission on Banking, BBC News relates.

According to BBC, critics have said that such a split could damage
the UK's competitive edge and make banks leave the UK.

BBC relates in the paper released by the ICB, it said it would
also look at whether what it calls "market concentration" should
be reduced -- something that could result in visible changes to
the way the banks operate on the High Street.

BBC notes other topics for scrutiny include whether banks should
be restricted as to how much they should be allowed to use their
own money for investment trading, as well as whether an
institution should have a "living will" -- a declaration of how a
bank would wind itself down, should any future financial crisis
fatally undermine it.

The ICB's five members have asked interested parties to give their
views and are expected to question the chief executives of all of
the UK's largest banks, BBC says.

According to BBC, Sir John Vickers, the ex-chairman of the Office
of Fair Trading, said there would be "single party hearings in
private" to get banks to play a "constructive" part in the debate.
He is joined on the commission by Clare Spottiswoode, the former
director-general of Ofgas, Martin Taylor, a former chief executive
of Barclays, Bill Winters, the former co-chief executive of JP
Morgan, and Martin Wolf, the chief economics commentator at the
Financial Times, BBC discloses.

The ICB has until September 2011 to make recommendations to the
government, BBC states.


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


* EUROPE: Germany Seeks Tougher Penalties for High-Deficit States
-----------------------------------------------------------------
Rainer Buergin at Bloomberg News reports that German Finance
Minister Wolfgang Schaeuble renewed his push for tougher penalties
against high-deficit euro-region countries ahead of a meeting of
the group charged with drawing up new European Union rules.

Bloomberg relates in a letter to his counterparts before traveling
to Brussels on Monday, Mr. Schaeuble called for payments from the
EU's so-called structural funds to euro members failing to adhere
to deficit-reduction requirements to be suspended or permanently
revoked.

Countries that twice ignore deficit-cutting recommendations or
manipulate statistics should lose some of their EU voting rights
for a year, Mr. Schaeuble said in the letter, according to
Bloomberg.  Mr. Schaeuble, as cited by Bloomberg, said that
sanction would apply to votes on deficit proceedings against the
country in question and decisions concerning "the proper
functioning of economic and monetary union."

Germany, the biggest contributor to an emergency fund for over-
indebted euro members, is pushing for tougher penalties after
bond-yield premiums for countries such as Ireland and Portugal
over benchmark German bonds rose to records last week, Bloomberg
recounts.


                            *********

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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