TCREUR_Public/101006.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, October 6, 2010, Vol. 11, No. 197

                            Headlines



A R M E N I A

* Fitch Affirms Armenia's LT Issuer Default Ratings at 'BB-'


B E L G I U M

ADAM OPEL: GM to Shut Down Antwerp Factory After No Buyer Found
TELENET GROUP: Lenders Move Maturity of EUR495-Mil. Loans to 2017


C Z E C H   R E P U B L I C

* CZECH REPUBLIC: Corporate Bankruptcies Down 3% in September 2010


I R E L A N D

ANGLO IRISH: Writes Off Sean Quinn-Related Debts
IRISH NATIONWIDE: Abramovich Mulls Legal Action Over Bond Decision
MCINERNERY GROUP: Oct. 29 Deadline Set for Suvival Plan

* IRELAND: Insolvency Rate Rises 12.5% in Nine Months Ended Sept.


K A Z A K H S T A N

BTA BANK: Permanent Injunction Hearing Set for Oct. 26
KAZAKH MORTGAGE: Moody's Confirms Low-B Ratings on 2007-1 Notes
TEMIRBANK JSC: S&P Raises Counterparty Credit Ratings to 'B'


N E T H E R L A N D S

SAECURE 8: Moody's Assigns 'Ba2 (sf)' Rating on Class F Notes


L U X E M B O U R G

SUNRISE COMMUNICATIONS: S&P Assigns 'BB-' Corporate Credit Rating


S E R B I A   &   M O N T E N E G R O

* MONTENEGRO: Corporate Bankruptcies Increase to 244 in 9 Months


S L O V E N I A

MERKUR D.D.: 25% Stake Put Up for Sale; Debt Talks Ongoing


S W I T Z E R L A N D

SUNRISE COMMUNICATIONS: Moody's Assigns 'B1' Corp. Family Rating


U N I T E D   K I N G D O M

BELLATRIX PLC: S&P Junks Rating on Class E Notes From 'B- (sf)'
BRIGHT FUTURES: Subsidiary in Administration
CROWN CURRENCY: Goes Into Administration
EMF-UK 2008-1: S&P Affirms Low-B Ratings on Seven Classes of Notes
GUESTINVEST: Blakes Hotel Rescued From Administration





                         *********



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A R M E N I A
=============


* Fitch Affirms Armenia's LT Issuer Default Ratings at 'BB-'
------------------------------------------------------------
Fitch Ratings has affirmed Armenia's Long-term foreign- and local
currency Issuer Default Ratings at 'BB-' respectively.  The
Outlook on the Long-term IDRs is Stable.  At the same time, Fitch
affirmed the Short-term local currency IDR at 'B' and Country
Ceiling at 'BB'.

"Armenia's economy is recovering after recording one of the
sharpest contractions in the world in 2009.  Real GDP has turned
positive and pressure on foreign currency reserves and the
exchange rate have eased," said David Heslam, Director in Fitch's
Sovereign team.  "An extended IMF program underpins confidence in
continued policy discipline and official international financing
is helping to ease the necessary economic adjustment."

"Nevertheless, Armenia has large twin current account and budget
deficits and policy loosening in the face of the global economic
shock, combined with the scale of the 2009 economic contraction,
have left a costly negative legacy on the sovereign credit profile
in terms of higher government and gross external debt.  These will
take time to correct," added Mr. Heslam.

Real GDP contracted 14.2% in 2009.  Official estimates point to
real GDP growth of 6% in H110 and Fitch is forecasting GDP growth
of 5% for the year as a whole.  Fiscal loosening caused the
general government deficit to widen to 7.7% of GDP in 2009 from
0.7% in 2008.  A stronger economic growth backdrop and good
revenue performance so far in 2010 increases confidence that the
government will reduce the deficit this year to its target of 4.9%
of GDP.  The IMF program targets an annual pace of budget deficit
reduction of 1pp of GDP in 2011 and 2012, with the deficit
forecast at 2.3% in 2013.  Part of this reduction reflects plans
to increase tax revenues by about 0.5pp of GDP per year, via
improvements in tax administration.  Previous attempts to increase
tax revenues have, however, been frustrated.  Should plans to
raise tax revenues fail, the government has pledged to rein in
planned expenditure to meet its deficit target.

Fitch forecasts Armenia's gross government debt/GDP ratio to rise
from its pre-crisis level of 14.9% at end-2008 to a peak of 43% in
2012, falling gradually thereafter.  The peak government debt
level is therefore not expected to be significantly out-of-line
with the 10-year 'BB' median level of 40%, while the largely
concessional nature of the debt means that servicing costs will
remain below levels typically associated with the 'BB' range.

Success with narrowing the budget deficit is needed to support
Armenia's external adjustment.  Unlike many regional peers, the
current account deficit widened in 2009, to 16% of GDP from 11.9%
in 2008, with financing aided by official external borrowing by
the sovereign equivalent to around 10% of GDP.  Fitch is
forecasting a narrowing of the CAD to 12.9% in 2010, with further
narrowing to below 10% in 2012.  Financing will be supported by
the IMF program, which lasts until June 2013, and other official
external borrowing.  CAD narrowing is nevertheless needed to place
the country's external finances on a more sustainable footing over
the medium-term and will be partly subject to success with the
government's ambitious structural reform program.  Gross external
debt rose to 59% of GDP at end-2009 from below 30% in 2008.
Despite the rise in gross external debt, Armenia's external
liquidity remains strong and the external debt servicing burden
moderate relative to 'BB' peer median levels, reflecting the high
share of concessional borrowing by the sovereign in the total
external debt stock.

Armenia's sovereign ratings are supported by a strong economic
policy framework by 'BB' peer standards, light public and external
debt servicing burden and relatively good business environment,
while the large twin fiscal and current account deficits, low and
volatile government revenue base and small, narrowly-based and
highly "dollarized" economy weigh on the ratings.  Signs of
intensified balance-of-payments pressures that led to a sustained
fall in official foreign exchange reserves, or a rise in domestic
or external political risk -- although not Fitch's central
scenario -- could trigger a downgrade.  Conversely, clear evidence
that the economy has entered a balanced and sustainable recovery
path, with a narrowing of the twin deficits and declining external
debt ratios, would improve creditworthiness.


=============
B E L G I U M
=============


ADAM OPEL: GM to Shut Down Antwerp Factory After No Buyer Found
---------------------------------------------------------------
Cornelius Rahn and Ola Kinnander at Bloomberg News report that
General Motors Co.'s Opel division will shut its factory in
Antwerp, Belgium, by the end of this year after failing to find a
buyer.

"None of the potential investors was able to come forward with a
sustainable business concept for the plant," Russelsheim, Germany-
based Opel said in an e-mailed statement on Monday, according to
Bloomberg.  "The process to search for an industrial investor
interested in continuing operations has come to an end."

"During this wind-down period, while the active search of an
investor for continuing activities has ended, we will remain open
to discuss any reasonable proposals that might be presented to
us," Bloomberg quoted Opel as saying.

About 1,300 people still work at the Antwerp plant, which makes
the Opel Astra model, after half the workforce was eliminated
earlier this year, Bloomberg discloses.

Bloomberg notes even as it's closing the Antwerp plant, GM has
promised to invest EUR11 billion (US$15 billion) in its Opel and
Vauxhall divisions to improve the model line-up and win back
customers.

Adam Opel GmbH -- http://www.opel.com/-- is General Motors
Corp.'s German wholly owned subsidiary.  Opel started making cars
in 1899.  Opel makes passenger cars (including the Astra, Corsa,
and Vectra) and light commercial vehicles (Combo and Movano).  Its
high-performance VXR range includes souped-up versions of Opel
models like the Meriva minivan, the Corsa hatchback, and the Astra
sports compact.  Opel is GM's largest subsidiary outside North
America.

                           *     *     *

As reported by the Troubled Company Reporter-Europe, Bloomberg
News said GM decided in June this year to fund Opel's EUR3.3
billion (US$4.3 billion) restructuring, after failing to secure
aid from European countries.  As reported by the Troubled Company
Reporter-Europe on June 11, 2010, Bloomberg News said Germany
turned down GM's request for EUR1.1 billion (US$1.3 billion) in
aid for its money-losing Opel division, forcing the automaker to
seek new ways to reorganize the unit.  Bloomberg disclosed Opel
sought EUR333 million in guarantees from the U.K., EUR437 million
from Austria and Spain combined and EUR50 million in project
financing from Poland.  Bloomberg said the Opel-Vauxhall
reorganization program includes eliminating 8,300 jobs from a
European workforce of 48,000 employees.


TELENET GROUP: Lenders Move Maturity of EUR495-Mil. Loans to 2017
-----------------------------------------------------------------
Karen Eeuwens, writing for Bloomberg News in London, reports that
Telenet Group Holding NV, said lenders agreed to swap almost half
of the loans in a EUR1.06 billion (US$1.45 billion) exchange offer
to a facility expiring in 2017.  Telenet said more than two
thirds, or 68%, of the term loans will now expire in July 2017.

The voluntary loan exchange was launched on July 19.

According to the Bloomberg report, Rob Goyens, manager of investor
relations, said in an interview that banks providing term loans
with maturities ranging from 2012 to 2015 -- which formed part of
a EUR2.3 billion facility signed in 2007 -- transferred EUR495
million of their commitments to the new seven-year portion.

According to Bloomberg, Mr. Goyens said Telenet also transferred
most of the loans exchanged in an offer completed last year to the
new facility, bringing the size of the new portion to EUR1.47
billion.

Bloomberg reports that Telenet said Monday it increased the
interest margin it pays on the funds to 375 basis points more than
the euro interbank offered rate, from as low as 225 basis points
in the original transaction.  A basis point is 0.01 percentage
point.

BNP Paribas SA and JP Morgan Chase & Co. were bookrunners on the
original deal, according to data compiled by Bloomberg.

Based in Mechelen, Belgium, Telenet Group Holding NV is a cable
operator controlled by Liberty Global Inc.

According to Bloomberg, Moody's Investors Service ranks Telenet's
debt Ba3.


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C Z E C H   R E P U B L I C
===========================


* CZECH REPUBLIC: Corporate Bankruptcies Down 3% in September 2010
------------------------------------------------------------------
CTK, citing Creditreform, reports that 432 insolvency proposals
were filed against legal entities in the Czech Republic in
January-September.

"Compared with September 2009, we registered a 3 percent fall in
the number of insolvency petitions against legal entities," CTK
quoted Creditreform analyst Stanislava Mensikova as saying.

According to CTK, roughly a half of insolvency petitions against
legal entities ends in bankruptcy declaration.   There were 121
bankruptcies declared in September 2010, 5% more than a year
earlier, CTK says.

Reorganization is a new solution when debts are being paid
gradually and the debtors' company continues operations, CTK
discloses.  Courts have allowed 37 reorganization since the start
of validity of the insolvency law in January 2008, CTK states.  Of
the number, 15 reorganizations were okayed this year, CTK notes.


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


ANGLO IRISH: Writes Off Sean Quinn-Related Debts
------------------------------------------------
BreakingNews.ie reports that Anglo Irish Bank has written off
almost all of its Sean Quinn-related exposure.  According to
BreakingNews.ie, it has resulted in total losses costing the
taxpayer EUR2.5 billion.

The bank had loaned EUR2.9 billion to Mr. Quinn, his family and
business interests, and it is now unlikely to recoup the vast bulk
of those funds BreakingNews.ie notes.

BreakingNews.ie says the Quinn losses are believed to have made a
significant contribution to Anglo's capital requirements which
last week were estimated to be up to EUR35 billion in a worst case
scenario.

As reported by the Troubled Company Reporter-Europe on Oct. 4,
2010, Belfast Telegraph said that investment bank Goldman Sachs is
snapping up discounted Quinn Group debt on behalf of clients while
simultaneously advising the Irish government on Anglo Irish Bank's
Quinn dealings.  Belfast Telegraph disclosed Goldman Sachs has
been retained by the Republic's National Treasury Management
Agency (NTMA) to run the rule over various plans submitted by
Anglo.  Belfast Telegraph's sources confirmed this role includes
examining Anglo's proposal to buy Quinn Insurance, which went into
administration in April, to improve the bank's chances of
recouping debt owed by the wider Quinn Group and family.

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.


IRISH NATIONWIDE: Abramovich Mulls Legal Action Over Bond Decision
------------------------------------------------------------------
Reuters reports that Russian billionaire Roman Abramovich may take
legal action against the Irish government over its decision to
make subordinated bondholders in Irish Nationwide pay part of the
bill for dealing with the building society's huge property losses.

"We urge Irish authorities to reconsider their position on INBS
subordinated bonds and come out with a detailed plan on what is
going to happen to this institution," a statement from
Abramovich's investment vehicle Millhouse said, according to
Reuters.  "In the meantime, we are fully prepared to vigorously
defend our position using all possible legal means."

Reuters relates Minister for Finance Brian Lenihan said that he
expected bondholders in INBS and nationalized lender Anglo Irish
Bank to make "a significant contribution" towards meeting the cost
of a bill of up to EUR40 billion for cleaning up their years of
reckless lending.

Both bonds are trading at significant discounts in the secondary
market, Reuters notes.

Anglo Irish Bank, which has EUR2.4 billion in subordinated bonds,
accounts for over two-thirds of Ireland's "worst case" bank bill
of EUR50 billion, Reuters says.  INBS will cost taxpayers EUR5.4
billion, Reuters states.

According to Reuters, Mr. Abramovich's investment vehicle said
making INBS subordinated bondholders accept losses on their
investments was unfair and possibly illegal.

"We fail to see how we can 'significantly contribute' to the cost
of survival of the Irish Nationwide Building Society, given that
even, if the entire lower tier 2 debt is wiped out,  it would only
save a meager 2.3 per cent of the total cost of [the] bailout of
INBS," Mr. Abramovich's investment vehicle said, Reuters notes.

Irish Nationwide Building Society, headquartered in Dublin, had
total assets of EUR14.4 billion at year-end 2008.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 6,
2010, Fitch Ratings upgraded the Individual rating of Irish
Nationwide Building Society to 'E' from 'F'.  The upgrade of
INBS's Individual Rating to 'E' recognizes the government's
injection of EUR2.7 billion capital into the society, but also
acknowledges that the society is still likely to require further
external support.  The sale at a loss of loans to NAMA is likely
to lead the society to report losses in 2010 which Fitch expects
to be larger than the society's capital base.  Fitch thus expects
that the society will require additional capital to comply
with the Irish Financial Regulator's minimum capital requirements
of an 8% Tier 1 capital ratio by end-2010.


MCINERNERY GROUP: Oct. 29 Deadline Set for Suvival Plan
-------------------------------------------------------
Irish Examiner reports that the High Court extended protection to
the McInerney building group until Nov. 2.

Irish Examiner relates Mr. Justice Frank Clarke said he would give
interim examiner, William O'Riordan, until Oct. 29 to come up with
a full scheme for survival of the group comprising McInerney
Holdings, McInerney Homes, McInerney Construction Holdings,
McInerney Contracting and McInerney Contracting Dublin, which have
combined debts of EUR200 million.

According to Irish Examiner, the court heard the examiner believed
the group had a reasonable prospect of survival based on
investment proposals from US private equity group Oaktree Capital.

Mr. Justice Clarke, as cited by Irish Examiner, said the
examiner's latest report found there was a realistic possibility
at this stage that Oaktree is willing to put up sufficient sums
which is said to be greater than what would be realized in a
situation of insolvency.

It would take some time for the examiner to engage with creditors
and shareholders over their acceptance of such a survival proposal
and he was prepared to continue court protection until Nov. 2,
Irish Examiner says.

If no survival scheme is in place by then, a full hearing would
take place on Nov. 5 into whether or not the examinership should
be confirmed, Irish Examiner states.

Three banks -- Anglo Irish Bank, Bank of Ireland and KBC -- are
owed EUR114 million by the group and oppose the survival proposal
which they say is being put forward on a significant write-down of
the debt owed to them, Irish Examiner notes.

McInerney Holdings plc -- http://www.mcinerneyholdings.eu/-- is a
home builder and regional home builder in the North and Midlands
of England.  It also undertakes commercial and leisure projects in
Ireland, United Kingdom and Spain.  It operates in Ireland, the
United Kingdom and Spain.  The main trading activities of the
Company's Irish home building business during the year ended
December 31, 2008 consisted of construction of private houses,
trading in developed sites and land, development of residential
land for third-parties and in joint-ventures, and contracting for
third-parties.  The Company's commercial property development
division, Hillview Developments Ltd (Hillview), develops
industrial units in the Greater Dublin area.  Hillview completed
1,223 square meters of industrial units as of December 31, 2008.
Its Spanish division, Alanda Group, is developing freehold
apartment schemes.  As of December 31, 2008, the Company completed
1,359 private and contracting residential units in Ireland, the
United Kingdom and Spain.


* IRELAND: Insolvency Rate Rises 12.5% in Nine Months Ended Sept.
-----------------------------------------------------------------
Charlie Taylor at The Irish Times reports that more than 1,100
companies in Ireland went out of business in the first nine months
of the year.

Citing new figures released from InsolvencyJournal.ie, a website
run by Dublin insolvency firm Kavanagh Fennell, the Irish Times
discloses that 1,132 firms folded between January and September,
up 12.5% on the same period in 2009.

The numbers increased from 95 in August to 120 in September. The
September figure is a marginal increase on last year's total of
114 insolvencies for September 2009.

According to the Irish Times, construction continues to be the
hardest-hit industry, with 351 firms going out of business so far
this year.  During September, there were 42 insolvencies, the
highest number of any sector and an increase on the August figure
of 32.

The Irish Time reports that the services industry has also been
hit hard, with 207 insolvencies this year.  Last month, 20 firms
went bust, a rise of 10 per cent on August.  There were 16
insolvencies in the retail sector in September, bringing the
yearly total to 140, and 15 in the hospitality industry for a
total of 143 in the first nine months of 2010.


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


BTA BANK: Permanent Injunction Hearing Set for Oct. 26
------------------------------------------------------
The Honorable James M. Peck will hold a hearing in Manhattan at
10:00 a.m. on Oct. 26, 2010, to review a motion by Anvar
Galimullaevich Saidenov, the Chairman of the Management Board and
Foreign Representative of BTA Bank, for permanent injunctive
relief in support of a court-approved and creditor-endorsed
restructuring plan pursuant to 11 U.S.C. Secs. 105(a), 350,
1507(a), 1509(b)(2)-(3), 1517(d) and 1521(a).

                         About BTA Bank

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.

The BTA Group is one of the leading banking groups in the
Commonwealth of Independent States and has affiliated banks in
Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey.
In addition, the Bank maintains representative offices in Russia,
Ukraine, China, the United Arab Emirates and the United Kingdom.
The Bank has no branch or agency in the United States, and its
primary assets in the United States consist of balances in
accounts with correspondent banks in New York City.

As of November 30, 2009, the Bank employed 5,043 people inside
and 4 people outside Kazakhstan.  It has no employees in the
United States.  Most of the Bank's assets, and nearly all its
tangible assets, are located in Kazakhstan.

JSC BTA Bank, also known as BTA Bank of Kazakhstan, commenced
insolvency proceedings in the Specialized Financial Court of
Almaty City, Republic of Kazakhstan.  Anvar Galimullaevich
Saidenov, the Chairman of the Management Board of BTA Bank, then
filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 10-10638) on
Feb. 4, 2010, estimating more than US$1 billion in assets and
debts.

On March 9, 2010, the Troubled Company Reporter-Europe reported
that JSC BTA Bank was granted relief in the U.S. under Chapter 15
when the bankruptcy judge in New York recognized the Kazakh
proceeding as the "foreign main proceeding."  Consequently,
creditor actions in the U.S. were permanently halted, forcing
creditors to prosecute their claims and receive distributions
in Kazakhstan.

In the U.S., the Foreign Representative is represented by Evan C.
Hollander, Esq., Douglas P. Baumstein, Esq., and Richard A.
Graham, Esq. -- rgraham@whitecase.com -- at White & Case LLP in
New York City.

Bloomberg News reports that the Specialized Financial Court of
Almaty approved BTA Bank's debt restructuring on Aug. 31, 2010,
trimming its obligations from US$16.7 billion to US$4.2 billion,
and extending its longest maturity dates to 20 year from eight.
Creditors who hold 92 percent of BTA's debt approved the
restructuring plan in May.  BTA reportedly distributed
US$945 million in cash to creditors and new debt securities
including US$5.2 billion of recovery units (representing an 18.5%
equity stake) and US$2.3 billion of senior notes on Sept. 1, 2010.
BTA forecasts profit of slightly more than US$100 million in 2011,
Chief Executive Officer Anvar Saidenov told reporters in Almaty.


KAZAKH MORTGAGE: Moody's Confirms Low-B Ratings on 2007-1 Notes
---------------------------------------------------------------
Moody's Investors Service has confirmed the ratings of the notes
issued by Kazakh Mortgage-Backed Securities 2007-1 B.V., where the
Notes were backed by US$-denominated collateral originated in
Kazakhstan.  Moody's originally downgraded and put these Notes on
review for downgrade on February 9, 2009 due to the increased
uncertainty related to the rapid depreciation of the Tenge against
the US Dollar and the resulting low but increased risk, in Moody's
opinion, of redenomination of US$ mortgages and loan agreements
into Tenge.  The notes were subsequently downgraded and left on
review for further downgrade on March 31, 2009 due to the
deteriorating financial situation of the parent of the originator
and servicer, Bank TuranAlem.  Below is the list of the notes
affected by this confirmation.

Issuer: Kazakh Mortgage-Backed Securities 2007-1 B.V.

  -- US$123,000,000 Class A Mortgage Backed Floating Rate Notes
     due 2029, Confirmed at Ba2 (sf); previously on Mar 31, 2009
     Downgraded to Ba2 (sf) and Remained On Review for Possible
     Downgrade

  -- US$11,300,000 Class B Mortgage Backed Floating Rate Notes due
     2029, Confirmed at Ba3 (sf); previously on Mar 31, 2009
     Downgraded to Ba3 (sf) and Remained On Review for Possible
     Downgrade

  -- US$7,100,000 Class C Mortgage Backed Floating Rate Notes due
     2029, Confirmed at B1 (sf); previously on Mar 31, 2009
     Downgraded to B1 (sf) and Remained On Review for Possible
     Downgrade

In its analysis, Moody's has identified a linkage between the
Foreign Currency Ceiling for Deposits in the country (Ba1 for
Kazakhstan) and the probability of redenomination of the foreign
currency denominated mortgage and auto loans into the local
currency.  The Foreign Currency Ceiling for Deposits is typically
used to reflect the risk that, in case of a currency crisis in the
country, the government would limit withdrawal from the foreign
currency deposits in order to restrict the movement of foreign
currencies out of the country.  The linkage between the FCC for
Deposits and the risk of redenomination results from the fact that
redenomination is also expected to occur during a period of
currency crisis, when the depreciation of the local currency would
put stress on the consumers, who have borrowed in foreign
currencies, but typically earn salaries in the local currency.
Such depreciation would increase the pressure on the government to
alleviate the burden on the consumers by redenominating these
loans at an exchange rate unfavorable for the transaction.

Therefore, in its analysis, Moody's concluded that the ratings of
the foreign-currency backed Notes rated above the FCC for Deposits
in the country would be susceptible to the additional linkage to
the FCC for Deposits, which would reflect the additional
uncertainty incorporated into these ratings as a result of the
redenomination risk.  Therefore, the downgrade of the FCC for
Deposits in the country may lead to the downgrade of these Notes
if they lack sufficient credit enhancement to cover the
redenomination risk.

For the Notes rated at or above the FCC for Deposits, Moody's
ensured that the ratings of the Notes can sustain a redenomination
scenario where the losses on the pool are assumed to be
approximately 50%.  This would occur with a probability equal to
the FCC for Deposits in the country (in addition to the losses
generated by the pool and other risk factors of the transaction,
which would occur assuming redenomination did not take place).
The level of losses in case of redenomination was determined using
severities observed in historical redenomination scenarios, such
as the Argentinean currency crisis in 2001-2002.  Please note
that, in order for their ratings to pierce the FCC for Deposits,
the Notes would need credit enhancement sufficient to fully cover
for the potential losses related to redenomination.

Finally, as part of this analysis Moody's also reviewed the
performance of the transaction and re-evaluated its assumptions in
light of this performance.  Moody's also took into account the
latest assessments of the financial strength of the parent of
originator and servicer in the transaction.  The E bank financial
strength rating and the Caa3 long-term deposit ratings of the BTA
Bank have been put on review for possible upgrade on September 30,
2010 following the announcement that BTA Bank completed the
restructuring of US$16.65 billion debt on 31 August 2010, in a
deal that included cancellation of existing debt, debt-to-equity
conversion as well as the issuance of longer-maturity bonds.


TEMIRBANK JSC: S&P Raises Counterparty Credit Ratings to 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
counterparty credit ratings on Kazakhstan-based Temirbank JSC to
'B' from 'D' and its short-term counterparty credit ratings to 'B'
from 'D'.  The outlook is stable.  At the same time, S&P raised
the Kazakhstan national scale rating to 'kzBB' from 'kzD'.

"The upgrade factors in one notch of uplift above the bank's
stand-alone credit profile due to S&P's opinion of the moderate
probability of potential government extraordinary support if
required," said Standard & Poor's credit analyst Ekaterina
Trofimova.

It also reflects the improvement of the bank's stand-alone credit
profile resulting from the restructuring of its wholesale debt and
the recent capital injection.  Weak asset quality and poor
earnings remain the key weaknesses for the ratings.

Temir is the 13th-largest Kazakh bank, with total assets of $1.57
billion on June 30, 2010, a market share of 3.4% in loans and 1%
in deposits.

S&P considers the bank to be a government-related entity according
to its criteria.  S&P's ratings uplift of one notch reflects:

Temir's strong link with the government through its 79.9%
shareholder, Samruk-Kazyna (not rated), a 100% state-owned holding
company because the bank currently represents one of the
government's largest investments in the financial sector; but
"Limited importance" for Kazakhstan's economy because the bank
represents a reduced and limited market share and does not provide
a public service or function that other banks could not be readily
undertake.  "The stable outlook reflects S&P's expectation that
the Kazakh government will continue to provide ongoing liquidity
support as the bank cleans it loan book and diversify its funding
base," said Ms. Trofimova.

S&P's baseline scenario is that bad loans peaked in the second
quarter of 2010, with some potential for recoveries.

S&P may lower the ratings if S&P perceives that the Kazakh
government's stance toward the bank is no longer consistent with a
"moderate" likelihood of support, or if Temir's weak earnings and
poor asset quality start to weaken the currently adequate levels
of capital.  S&P would also consider a downgrade if the bank
increases or changes its debt profile and refinancing risks
increase again.

Although unlikely in the near term, S&P may raise the ratings if
the bank's asset quality and earnings recover to levels more
comparable with peers with higher ratings and the bank maintains
its current liquidity profile, or if S&P's expectation of the
government support increases.


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


SAECURE 8: 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 8 NHG B.V.:

  -- Aaa (sf) to EUR296,000,000 Senior Class A1 Mortgage-Backed
     Notes 2010 due 2094

  -- Aaa (sf) to EUR1,110,000,000 Senior Class A2 Mortgage-Backed
     Notes 2010 due 2094

  -- Aa1 (sf) to EUR29,600,000 Mezzanine Class B Mortgage-Backed
     Notes 2010 due 2094

  -- Aa2 (sf) to EUR14,800,000 Mezzanine Class C Mortgage-Backed
     Notes 2010 due 2094

  -- Aa3 (sf) to EUR14,800,000 Junior Class D Mortgage-Backed
     Notes 2010 due 2094

  -- Baa1 (sf) to EUR14,800,000 Junior Class E Mortgage-Backed
     Notes 2010 due 2094

  -- Ba2 (sf) to EUR7,400,000 Subordinated Class F 2010 due 2094

                         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. (not
rated).  The portfolio will be serviced by AEGON Leven.  All loans
in the portfolio benefit from an NHG guarantee.

The ratings of the notes takes 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 0.15% of the portfolio and the
MILAN Aaa required Credit Enhancement of 4.8% 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 proportion of loans benefitting from an NHG
guarantee (100%), (ii) Moody's rescission rate assumption for this
transaction of 30%, based on historical pay-out data of claims
made under the NHG guarantee, (iii) the static nature of the pool,
(iv) the weighted average loan-to-foreclosure-value of 107.5%, (v)
the proportion of interest-only loans parts (43.7%) and (vi) the
weighted average seasoning of 1.7 years.

The key drivers for the portfolio expected loss are (i) the
proportion of loans benefiting from an NHG guarantee (100%), (ii)
the performance of the seller's precedent transactions and (iii)
benchmarking with comparable transactions fully backed by loans
benefiting from an NHG guarantee in the Dutch market.

Another key characteristic of this transaction is that
approximately 11.3% 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 transaction benefits from a reserve fund, which is fully
funded at closing at 0.5%.  Furthermore a liquidity funding
account, fully funded at closing through a subordinated loan, is
available to cover any potential liquidity shortfalls in the
transaction during the life of the transaction.  The interest rate
mismatch due to the fixed rate assets and the floating rate notes
is hedged through an interest rate swap typically seen in a Dutch
transaction.  The transaction benefits from an excess spread
margin of 0.25% through this swap mechanism.

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.  Another source of
uncertainty results from an increased transaction complexity due
to the swap arrangement compared to a standard Dutch RMBS
transaction.  The swap counterparty (AEGON Derivatives) is
unrated, however there is a back-up swap counterparty in place.
The swap will be automatically novated to the back-up swap
counterparty if certain credit events occur in relation to the
swap counterparty.  The swap novation mechanism makes this
transaction more complex than the standard Dutch RMBS transaction.

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 0.15% to 0.45 % and if the MILAN Aaa Credit
Enhancement was increased from 4.3% to 6.9%, 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.

                      Regulatory 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.

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.


===================
L U X E M B O U R G
===================


SUNRISE COMMUNICATIONS: S&P Assigns 'BB-' Corporate Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB-'
long-term corporate credit rating to Luxembourg-based holding
company Sunrise Communications Holdings S.A.  The outlook is
stable.

At the same time, S&P assigned 'BB' issue ratings and recovery
ratings of '2' to the proposed Swiss franc CHF500 million senior
secured term loan facility A due 2016, and to the proposed CHF320
million (equivalent) senior secured term loan facility B due 2017,
to issued by Skylight S.?.r.l., the immediate parent company of
Swiss telecoms operator Sunrise Communications AG.

In addition, S&P assigned a 'BB' issue rating and a recovery
rating of '2' to the proposed CHF800 million (equivalent) senior
secured notes due 2017, to be issued by Sunrise Communications
International S.A., the immediate parent company of Skylight.

Finally, S&P assigned a 'B' issue rating and '6' recovery rating
to the proposed CHF675 million (equivalent) subordinated notes due
2018, to be issued by Sunrise Communications Holdings.

The issue ratings on the proposed senior secured and subordinated
notes are based on draft documentation dated Sept. 30, 2010.  As
such, these ratings are subject to S&P's satisfactory review of
the final documentation.

The rating actions follow Sunrise Communications Holdings'
proposed acquisition of Sunrise Communications AG from Danish
telecoms operator TDC A/S (BB/Positive/B).  The acquisition will
take place via Sunrise Communications Holdings' 100%-owned
subsidiaries Sunrise Communications International and Skylight.

"The ratings on Sunrise Communications Holdings are primarily
constrained by the group's high leverage and S&P's view that the
group's sponsor, private-equity company CVC Capital Partners
(CVC), is likely to pursue an aggressive financial policy," said
Standard & Poor's credit analyst Matthias Raab.  "S&P understands
that a large majority of CVC's contribution to finance the
acquisition of Sunrise Communications AG from TDC will be in the
form of about CHF0.9 billion of preferred equity certificates
(PECs) and about CHF0.1 billion of convertible PECs, which will
sit at Sunrise Communications Holdings' parent company Mobile
Challenger Group S.?.r.l.  According to its criteria, S&P view the
PECs and CPECs as long-term, deeply subordinated debt instruments,
but acknowledge that they have certain equity characteristics."

Partly offsetting these constraints is S&P's assessment of Sunrise
Communications Holdings' fair business risk profile, reflecting
its established market position in the consolidated, mature, and
stable Swiss telecoms market.

In S&P's view, Sunrise Communications Holdings is likely to
generate at least CHF120 million of free operating cash flow in
2011 and post low single-digit EBITDA growth in the next 18 months
compared with the 12 months to June 30, 2010.  EBITDA growth is
likely to be primarily a result of slightly higher mobile revenues
and cost-cutting.  As a result, S&P anticipates that Sunrise
Communications Holdings' Standard & Poor's-adjusted ratio of gross
debt to EBITDA, excluding PECs and CPECs, will approach 4.5x, and
including the interest-accruing PECs and CPECs, will remain at
about 6.7x by the end of 2011.  S&P views these two ratios as
compatible with the rating over the medium term, provided that
Sunrise Communications Holdings' operating performance and cash
flow generation do not weaken.

Although it is not S&P's base-line assessment at this stage,
pressure on the rating could arise if Sunrise Communications
Holdings' credit measures were to fail to improve from their
current levels as a result of a more competitive environment in
Switzerland, for example, leading to some negative effects on
mobile revenue growth and operating margins.

S&P believes that a higher rating is unlikely in the next 18
months, given the group's highly leveraged capital structure, and
given that the ratings already factor in a strengthening of credit
metrics.


=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


* MONTENEGRO: Corporate Bankruptcies Increase to 244 in 9 Months
----------------------------------------------------------------
NewEurope reports records from the Podgorica Commercial Court show
that the number of bankruptcies in Montenegro has risen by half in
2010 compared to the year before.

According to NewEurope, Montenegro Times said the record states
that January-September period of this year, 244 companies filed
for bankruptcy, up from 166 in the same period last year.

NewEurope relates analysts said some bigger companies are facing
difficulties repaying loans, which could trigger a domino effect
and undermine the economy.

NewEurope notes Bozo Mihailovic, an economics professor at
Podgorica University, said this is the result of the very easy
conditions under which the loans were approved for businesses.  He
suggested that the state needs to amend the legislation regulating
bankruptcy, which sometimes takes years to complete, NewEurope
discloses.  He also noted that several companies took years to
complete the process of complicated law on bankruptcies, NewEurope
states.


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


MERKUR D.D.: 25% Stake Put Up for Sale; Debt Talks Ongoing
----------------------------------------------------------
Boris Cerni at Bloomberg News reports that Slovenia's unit of Hypo
Alpe-Adria-Bank International AG is inviting bids for a 25% stake
in Merkur d.d., which declared insolvency last month.

Bloomberg relates said in a release published in Delo newspaper on
Monday that the Ljubljana-based lender will auction 328,147 shares
on Oct. 15 for a total price of EUR38 million (US$52 million).

According to Bloomberg, Merkur said on its website that the
company is continuing talks with six banks based in Slovenia on
restructuring debt payments to avoid bankruptcy.

Merkur d.d. is a home-ware and construction retailer based in
Naklo near the capital Ljubljana.


=====================
S W I T Z E R L A N D
=====================


SUNRISE COMMUNICATIONS: Moody's Assigns 'B1' Corp. Family Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a B1 corporate family
rating and probability-of-default rating to Sunrise Communications
Holdings S.A., the ultimate parent of Sunrise Communications AG.
At the same time, Moody's has assigned provisional ratings and
loss-given-default assessments to these debt instruments of
different group entities:

  - CHF675 million (equivalent) of senior unsecured bonds due
    2018, issued by Sunrise Communications Holdings S.A.:
    (P)B3/LGD6

  - CHF800 million (equivalent) of senior secured bonds due 2017,
    issued by Sunrise Communications International S.A.:
    (P)Ba3/LGD3

  - CHF500 million senior secured term loan A at Skylight
    S.ů.r.l.: (P)Ba3/LGD3

  - CHF320 million (equivalent) senior secured term loan B at
    Skylight S.ů.r.l.: (P)Ba3/LGD3

The outlook for all the ratings is stable.  This is the first time
that Moody's has assigned ratings to Sunrise.

                         Ratings Rationale

"The B1 CFR reflects the strength of Sunrise's business-risk
profile, which is mitigated by the weakness of its financial
profile following the leveraged acquisition of the company," says
Iván Palacios, a Moody's Vice President -- Senior Analyst and lead
analyst for Sunrise.

The acquisition of Sunrise by funds advised by CVC Capital
Partners was announced on 17 September 2010 and values the company
at CHF3.3 billion (6.7x 2009 EBITDA).  The transaction will be
financed with CHF1.0 billion of equity (including preferred equity
certificates and convertible preferred equity certificates, which
Moody's has treated as equity) and CHF2.3 billion worth of debt
(including bank facilities and bonds).

The rating reflects: (i) Sunrise's strong position in the Swiss
telecoms market, as the leading integrated alternative operator
with reported market shares of 16% and 23% in the fixed and mobile
telephony segments respectively; (ii) the relative stability of
the competitive, regulatory and macroeconomic environments in
Switzerland; (iii) the company's expected strong and stable cash
flow generation; and (iv) a comfortable liquidity position
following the completion of the leveraged buyout.

These positive considerations are balanced by the company's high
leverage as a result of the acquisition debt, with pro-forma
debt/EBITDA of 4.7x (as adjusted by Moody's) for financial year
2010.

The rating assumes that Sunrise's future operating performance
will be characterized by low revenue and EBITDA growth, as a
result of the maturity of the Swiss market, the already high
levels of penetration (122% mobile penetration as of June 2010),
and the level of competition in the market.  Sunrise competes with
a well-capitalized and dominant incumbent, and Moody's believes
that it will be challenging for the company to increase its
reported market share in fixed and mobile telephony from its
current levels.  Nevertheless, Sunrise has a recent track record
of sustained customer growth, and it plans to leverage its
investment in its mobile network and its ample network capacity to
benefit from the expected growth in smartphone penetration in
Switzerland.

Moody's notes that Sunrise has a seven-year track record of
generating relatively flat revenue and EBITDA.  While expecting
this revenue stability to continue, the rating agency believes
that the company will be able to slowly but progressively improve
its moderate EBITDA margin of around 25% (as reported by the
company) for FY 2009.

Given that Moody's expects Sunrise's EBITDA to grow only
gradually, the company will de-leverage slowly, with debt/EBITDA
(as adjusted by Moody's) improving to around 4.2x by FY 2013.
Failure to de-leverage the balance sheet as planned could lead to
pressure on financial covenants by the end of the rating horizon,
as the maintenance financial covenants included in the acquisition
facilities tighten over time.

The stable outlook reflects that Sunrise is well positioned in the
B1 rating category despite the company's high leverage, with
credit metrics expected to gradually improve overtime, while there
is no major competitive, macro or regulatory threat envisaged over
the near to medium term.  The stable outlook also factors an
operating and financial performance in line with Moody's
expectations detailed above.

Upward pressure on the rating could develop if the management team
delivers on its business plan, such that the company's (i)
debt/EBITDA ratio (as adjusted by Moody's) reaches 4.0x or below;
and (ii) retained cash flow/debt ratio (as adjusted by Moody's)
trends towards 15% or higher.

Conversely, downward pressure on the rating could be exerted if
Sunrise's operating performance weakens such that the company does
not de-leverage from current levels.  Ratios that could be
indicative of downward pressure on the rating are debt/EBITDA (as
adjusted by Moody's) higher than 5.0x and RCF/debt (as adjusted by
Moody's) below 10%.

The (P)Ba3 rating of the senior secured bank facilities and the
senior secured bond, which is one notch above the CFR, reflects
the impact of the presence of junior debt in Sunrise's capital
structure.  The senior secured bond has the same rating and LGD
rate as the senior secured facilities, reflecting an Intercreditor
Equalisation Agreement that ensures that the proceeds resulting
from the enforcement of security for all senior creditors are
equalized.  The (P)B3 rating of the senior unsecured notes is a
result of Sunrise's high leverage and their contractually and
structurally subordinated position relative to the company's
senior secured bank facilities and senior secured bonds.

Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect the rating agency's
preliminary credit opinion regarding the transaction only.  Upon a
conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the revolving credit
facility and the notes.  A definitive rating may differ from a
provisional rating.

Headquartered in Zurich, Sunrise is the second-largest integrated
telecommunications operator in Switzerland, with CHF2.0 billion of
revenues and CHF500 million of EBITDA in FY 2009.  In a market
dominated by the incumbent, Sunrise is the leading challenger with
a reported 23% market share in mobile telephony, a segment that is
the largest contributor to the company's consolidated revenues
(58% of FY 2009 revenues).  The company has an estimated 16%
market share in the fixed voice segment and a 12% market share in
the asymmetric digital subscriber line segment.

                      Regulatory Disclosures

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'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.


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


BELLATRIX PLC: S&P Junks Rating on Class E Notes From 'B- (sf)'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit rating on
BELLATRIX PLC's class E notes.  S&P also affirmed the ratings on
the class A, B, C, and D notes.

The downgrade reflects S&P's view of the increasing likelihood of
principal losses in the near term with regard to the Market Way
loan, which represents approximately 15% of the current
securitized pool.  The loan was initially secured against a large
retail unit in Coventry, leased entirely to Woolworths.  As a
result of the administration of Woolworths, the loan experienced a
payment default and was transferred into special servicing in
January 2009.  An LPA (Law of Property Act) receiver was appointed
in February 2009 and the borrower failed to repay the loan at
maturity in July 2010.  Since the January 2009 investor payment
date, there have been drawings from the liquidity facility to
cover the interest on the loan.

A March 2010 valuation reported the market value of the property
to be ?6.2 million, which reflects that it has since been entirely
leased to Poundland, Sports Direct, and a local property developer
who is in the process of converting the former storage space into
student accommodation.  The current loan balance and updated
valuation reflect a loan-to-value ratio of 124%.

As of the July 2010 investor report for the Market Way loan, a
total of ?8,582,621 was outstanding, which includes: current loan
balance (?7,670,000), outstanding loan interest (?383,213), swap
interest including default interest (?70,676), and swap breakage
cost (?458,732).

The LPA receiver is currently marketing the property and is in
negotiations with a prospective purchaser.  Considering the
valuation of ?6.2 million against the ?8.6 million in total
outstanding cost, which includes swap breakage cost that has
priority ranking over the loan balance, S&P believes there is a
reasonable likelihood of principal losses occurring in the near
term.  S&P has therefore lowered its rating on the class E notes.

Based on S&P's review of the remaining loans in the pool, S&P has
also affirmed all other ratings in this transaction.

BELLATRIX (ECLIPSE 2005-2) closed in 2005 with notes totaling
?393.7 million.  The notes have a legal final maturity of January
2017.  Of the 13 loans that originally backed the transaction,
seven have prepaid.  The note balance has reduced to ?52.5 million
as a result of the prepayment of seven loans.

                            Ratings List

                  BELLATRIX (ECLIPSE 2005-2) PLC
   ?393.69 Million Commercial Mortgage-Backed Floating-Rate Notes

                          Rating Lowered

                                 Rating
                                 ------
                Class       To             From
                -----       --             ----
                E           CCC- (sf)      B- (sf)

                         Ratings Affirmed

                       Class       Rating
                       -----       ------
                       A           AAA (sf)
                       B           AAA (sf)
                       C           AA+ (sf)
                       D           A (sf)


BRIGHT FUTURES: Subsidiary in Administration
--------------------------------------------
Bright Futures Group plc disclosed that the Board of BFG's
subsidiary Restaurants at Work Limited appointed Administrators,
following the failure to reach agreement with HM Revenue and
Customs about the arrears owed by RAW. In the year ended March 31,
2010, RAW was loss-making on revenue of GBP5.2 million.

As a result of RAW being placed into Administration, the Group no
longer has any liability to Lloyds Banking Group and its historic
liability to HMRC is significantly reduced.

Following the appointment of Administrators to RAW, the Directors
of BFG intend to focus on the Group's remaining operations, which
principally comprise the recently acquired Yes Dining Limited. The
administration of RAW may have some impact on Jill Bartlett
Company Limited's activities, as it operates from the same
premises and shares the same back office services as RAW.  A
further announcement will be made in connection with this if
appropriate.

YDL was previously part of the Castle View International Holdings
Limited group based in Scotland, but will now be managed through
our office in Oxford.  In the year ended 31 March 2010 Yes Dining
Limited had an annual turnover of GBP6,352,897 and gross profit of
GBP685,722. The Directors are therefore confident that the Group,
remains a viable concern with a good opportunity to build on this
strong base of profitable business.

The Directors of BFG are responsible for the contents of this
announcement.


CROWN CURRENCY: Goes Into Administration
----------------------------------------
BBC News reports that thousands of people face uncertainty over
travel money after Crown Currency Exchange went into
administration.  The report relates that Crown Currency blamed the
downturn in the travel market.

According to the report, administrators MCR said that an estimated
13,000 consumers would be directly affected.  The report relates
the administrators said that these people should not expect an
early resolution in the case and a quick return of money.

The report notes that the business allowed individuals and
business customers to pre-order foreign exchange at a set price up
to a year in advance, with amounts of between GBP300 and GBP10,000
available.  But its bank accounts were frozen by Barclays at the
weekend, barring it from withdrawing or transmitting any money to
customers, the report says.

Administrators from MCR and SPW were appointed on October 4, 2010.

The administrators, the report notes, said that the business had
processed hundreds of millions of pounds worth of foreign currency
in the last five years, providing travel money in 80 different
currencies, as well as travelers' checks money transfers.

"Like many operators in the travel sector, it has experienced a
difficult trading environment during the course of the past 12
months which has been exacerbated by a further downturn and
general tightening of the travel market," the report quoted
administrator Paul Clark, of MCR, as saying.

The administrators are contacting all those affected to advise
them on their individual situation, but these people could also
contact the company, BBC News says.

"I have no doubt that they will be understandably concerned about
their own position and we recommend that they contact the company
directly," the report quoted Mr. Clark as saying.  "We fully
appreciate the difficult position in which many will now find
themselves in -- many in the build-up to holidays or business
trips, as well as money transfers associated with second home
purchases.  However the administration process is in its early
days and we cannot guarantee an early resolution for those looking
for a quick return of their money," he added.

                       About Crown Currency

Headquartered in Hayle, Cornwall, Crown Currency Exchange is one
of the UK's biggest foreign exchange websites.  The business was
established by husband and wife Peter and Susan Benstead five
years ago.


EMF-UK 2008-1: S&P Affirms Low-B Ratings on Seven Classes of Notes
------------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
EMF-UK 2008-1 PLC's class A1 and A2 notes and affirmed the ratings
on the class A3 notes.  At the same time, S&P affirmed its ratings
on all classes in Eurosail PRIME-UK 2007-A PLC and Mortgage
Funding 2008-1 PLC.

Principal payments in EMF-UK 2008-1 have been averaging ?12.34
million over the last year.  Based on this, S&P expects the class
A1 notes to redeem in the near term, which is why S&P has raised
its rating on this class of notes.  Consequently, the class A2
notes will begin to receive principal payments, which results in
an improvement of their creditworthiness.  S&P has therefore
raised the rating on the class A2 notes.

These three transactions no longer have the benefit of a
sterling/euro swap, which was the reason behind S&P's downgrades
in December 2008.  This leaves the transactions exposed to
exchange rate risk.  S&P has stressed for this in its cash flow
analysis, which resulted in a potential principal loss because all
spot rates for each of the transactions remain below the swap rate
at closing.  S&P does not view the effect of these losses as being
imminent and therefore S&P has affirmed the ratings on all the
remaining classes in EMF-UK 2008-1, Mortgage Funding 2008-1, and
Eurosail PRIME-UK 2007-A.

In addition, repossession stocks remain low in Eurosail PRIME-UK
2007-A with minimal losses as of June 2010.  EMF-UK 2008-1's 90+
day delinquencies (90+ day at 7.71% and 120+ day at 6.51%) are
lower than in many other nonconforming transactions of the same
vintage, as of June 2010.

Mortgage Funding 2008-1, however, has relatively high 90+ day
delinquencies (90+ day at 23.47% and 120+ day at 19.71%).  S&P
views these as loans that are likely to default in the near term.
Despite this, S&P feels there is still sufficient credit
enhancement in place to be consistent with its affirmation on the
notes.

Eurosail PRIME-UK 2007-A contains loans that Alliance & Leicester
PLC originated.  EMF-UK 2008-1 and Mortgage Funding 2008-1 contain
mortgages originated by Alliance & Leicester, Matlock London Ltd.,
Preferred Mortgages Ltd., Southern Pacific Mortgage Ltd., Southern
Pacific Personal Loans Ltd., and Langersal No. 2 Ltd.

                           Ratings List

                          Ratings Raised

                         EMF-UK 2008-1 PLC
       ?434.533 Million and ?41.625 Million Mortgage-Backed
                        Floating-Rate Notes

                                 Rating
                                 ------
                Class       To            From
                -----       --            ----
                A1          AAA (sf)      B+ (sf)
                A2          BBB+ (sf)     B (sf)

                         Ratings Affirmed

                         EMF-UK 2008-1 PLC
       ?434.533 Million and ?41.625 Million Mortgage-Backed
                       Floating-Rate Notes

                        Class       Rating
                        -----       ------
                        A3          B (sf)

                   Eurosail PRIME UK 2007-A PLC
               ?323.743 Million Floating-Rate Notes

                        Class       Rating
                        -----       ------
                        A           B (sf)
                        M           B- (sf)
                        B           B- (sf)
                        C           B- (sf)
                        D           B- (sf)

                    Mortgage Funding 2008-1 PLC
      ?1,112.125 Million and ?146.000 Million Mortgage-Backed
                        Floating-Rate Notes

                        Class       Rating
                        -----       ------
                        A           B- (sf)


GUESTINVEST: Blakes Hotel Rescued From Administration
-----------------------------------------------------
Chris Druce at Caterersearch.com reports that Blakes hotel has
been rescued from administration in a GBP20 million deal.

According to the report, the hotel has been bought by Apostrophe
owner Meir Abutbul and hotelier Navid Mirtorabi.  The report
relates that the pair has expressed interest in expanding the
brand internationally, with Hempel involved in overseeing an
extensive refurbishment of the 51-bedroom property.  Finance for
the deal was provided by Barclays Corporate, the report says.

The report recalls that Blakes hotel was acquired by buy-to-let
firm GuestInvest in 2007 but plans to adapt it to the firm's model
never happened.  GuestInvest was placed into administration in
October 2008.

Mr. Mirtorabi purchased the freehold interest to the Regents Park
hotel in London in 2007, while Mr. Meir has built cafe concept
Apostrophe up into a 16-strong chain and also has other hotel
interests.

Blakes hotel is a hotel located in London that was created by
designer Anouska Hempel, the report adds.


                            *********

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
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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.

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of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
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                 * * * End of Transmission * * *