TCREUR_Public/101014.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, October 14, 2010, Vol. 11, No. 203

                            Headlines



B E L A R U S

POLONIKA: May Be Closed Down; Faces Suit From Tax Inspection Chief


B U L G A R I A

* BULGARIA: Commercial Registry Act Amendments Still Pending


C Z E C H   R E P U B L I C

CET21 SPOL: Moody's Assigns 'Ba3' Rating to EUR170 Mil. Notes
CET 21: S&P Assigns 'B' Issue Rating to Senior Secured Notes


I R E L A N D

EBS BUILDING: Irish Life Mulls Right Issue in Merger Bid
IRISH NATIONWIDE: Bondholders Seek to Band Together
NARA CABLE: Moody's Assigns 'B2' Rating to EUR500 Mil. Notes
PIERSE CONTRACTING: High Court Appoints Interim Examiner
PUNCH TAVERNS: Mulls Disposal of 1,300 Outlets to Reduce Debt

RUSHYDRO FINANCE: Moody's Assigns 'Ba1' Rating to Notes


I T A L Y

ARES FINANCE: Fitch Junks Ratings on Two Classes of Notes


L U X E M B O U R G

BOZEL SA: Gets Nod to Hire BDO as U.S. Financial Advisor


P O L A N D

* Marek Krol Joins Chadbourne's Warsaw Office


R O M A N I A

BLUE AIR: Request for Suspension of Insolvency Procedures Rejected


R U S S I A

B&N BANK: Moody's Assigns 'B2' Rating to Senior Unsec. Bonds
CREDIT BANK: Moody's Assigns 'B1' Rating to Senior Unsec. Debt
GAZPROMBANK OAO: Moody's Assigns Long-Term Rating to Senior Debt
MOSCOW BANK: Moody's Assigns 'B1' Rating to Senior Unsec. Debt
MOSCOW MORTGAGE: Moody's Assigns 'Ba2' Rating to Senior Debt

PETROCOMMERCE BANK: Moody's Assigns 'Ba3' Long-Term Debt Rating
RUSHYDRO FINANCE: Fitch Assigns 'BB+' Senior Unsecured Rating
TRANSCREDITBANK JSC: Moody's Assigns 'Ba1' Rating to Senior Debt
* Fitch Affirms 'BB-' Long-Term Ratings on Ulyanovsk Region


S P A I N

ABENGOA FINANCE: Fitch Assigns 'BB' Rating to Senior Notes
FONDO DE TITULIZACION: S&P Affirms Low-B Ratings on Various Notes
TDA 24: Default Risk Cues S&P to Lower Rating on Class D Notes


S W I T Z E R L A N D

UBS AG: Fitch Upgrades Individual Rating to 'C' From 'D'


U K R A I N E

UKRTELECOM OAO: May Be Put Up for Auction on December 28
* Moody's Changes Outlook on Ukraine's 'B2' Bond Rating to Stable


U N I T E D   K I N G D O M

EXOVA HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
HIGHFIELD JUNIORS: Near Collapse After Treasurer Stole Funds
INVISTA REAL ESTATE: To Delist & Sell Off Assets
JOSEPH DANENZA: U.S. Court Recognizes Chapter 15 Proceeding
LEISURE AND GAMING: Hopes to Avoid Administration

LIVERPOOL FOOTBALL: Holding Company In Default; May Face Collapse
LIVERPOOL FOOTBALL CLUB: Could Still Face Administration
LIVERPOOL FOOTBALL CLUB: Peter Lim Won't Rule Out Buying Firm
NEWINGTON NURSERIES: Goes Into Compulsory Liquidation
PRONUPTIA CORNWALL: To Be Put in Liquidation by End of October

STERLINGMAX I: S&P Cuts Ratings on Two Classes of Notes to 'BB-'
TARGETFOLLOW ESTATE: High Court Gives 2 Weeks to Secure Investment
TOTAL FITNESS: Boss Blames High Rents for Unit's Administration
VOICESERVE INC: Earns US$125,500 in June 30 Quarter
* UK: Retail Insolvency Rates Fall to Pre-2007 Levels, PwC Says


X X X X X X X X

* EUROPE: US$316BB of Junk-Rated Corporate Debt Needs Refinancing
* EUROPE: Junk Yields Tumble to Lowest Since Before Crisis

* Upcoming Meetings, Conferences and Seminars




                         *********


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B E L A R U S
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POLONIKA: May Be Closed Down; Faces Suit From Tax Inspection Chief
------------------------------------------------------------------
The chief of the tax inspection of Leninski district of Hrodna
filed a lawsuit to the Economic Court of Hrodna Region, World
Countries reports, citing Charter97.

World Countries says the tax inspection chief offered to open
bankruptcy proceedings against Polonika firm that works at the
unrecognized Union of Poles.  The case was heard on October 11,
Radio Svaboda said.

According to the report, Polonika was fined about 40,000 dollars
after auditing by tax inspection.  According to head of the Union
of Poles Anzhalika Arehva (Andzelika Orechwa), officers of the tax
inspection said the firm was engaged in humanitarian activity but
paid taxes.

The report notes the Union of Poles doesn't agree with this.
Anzhalika Arehva thinks the tax inspection is not right.  The
Union has all necessary proofs, World Countries relates.

Polonika's activity included lessons of Polish language for
dwellers of Hrodna.


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


* BULGARIA: Commercial Registry Act Amendments Still Pending
------------------------------------------------------------
Dnevnik.bg reports that progress on pressing amendments to the
Commercial Registry Act without which the liquidation of 900,000
companies will cost taxpayers BGN450 million remains uncertain.

According to Dnevnik.bg, unofficial reports claim that yet another
working group has been tasked with drafting the bill but has not
come up with specific texts.

Dnevnik.bg relates in July and August, the Justice Ministry
announced two projects but none has made its way to the Cabinet
and Parliament.

Dnevnik.bg notes under the proposals, sole proprietors and
branches of foreign companies that fail to reregister by
January 1, 2011, will automatically cease to exist and will be
struck off the registry.

Commercial entities and co-operatives will be removed from
turnover and they will be banned from making use of their
property, striking deals and making payments to business partners,
Dnevnik.bg relates.

Three months ahead of the expiry of the three-year period that
Bulgarian businesses were given to re-register, just 285,301 firms
have registered with the agency and almost 900,000 have not done
so, Dnevnik.bg discloses.  With the December 31 deadline looming
large, it is impossible to register more than 50,000 to 60,000
companies within the 80 working days left, Dnevnik.bg states.


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


CET21 SPOL: Moody's Assigns 'Ba3' Rating to EUR170 Mil. Notes
-------------------------------------------------------------
Moody's Investors Service has assigned a (P)Ba3 rating to the
EUR170 million senior secured notes due 2017 to be issued by CET21
spol. s r.o.  CET21 is a wholly owned subsidiary of Central
European Media Enterprises Ltd, with operations in the Czech
Republic and Slovakia.  Moody's has also affirmed CME's B2
corporate family rating, with a negative outlook.

Together with the new notes, CET21 intends to enter into a CZK1.5
billion (EUR60 million) revolving credit facility.  CET 21 intends
to use proceeds from the new notes to repay its CZK2.8 billion
secured facility, as well as about EUR49 million of a shareholder
loan from CME (which in turn will use the proceeds to reduce
parent indebtedness).

                        Ratings Rationale

The (P)Ba3 rating for the new 2017 notes reflects their relatively
strong position within CME's capital structure.  The amount of the
new notes is relatively limited compared with CME's group debt of
over US$1.2 billion.  The new notes and revolver will benefit from
the same security and guarantees as CME's existing notes; and from
security over CET21's shares and substantially all of its assets.

Moody's notes that although the 2017 notes will be secured on the
assets of CET21, the refinancing does not ring fence CET21 credit
risk from the rest of the CME group.  The terms of the new notes
and the revolver are not expected to restrict cashflow from CET21
being applied to service existing debt at the parent company.
Hence the ratings uplift for the notes from the B2 CFR arises from
the additional security provided to those noteholders (essentially
over the assets of CET21).

At the same time, Moody's notes that the CME group will continue
to have limited flexibility to incur new debt.  Under the existing
parent indentures, the incurrence coverage ratio for CME remains
below 2x; and the bond issuance and drawings under CET21's new
revolving credit facilities will substantially exhaust capacity
under the basket carve-out.  The incurrence test of 2.25x CET21's
OIBDA under the new 2017 notes further limits the ability to incur
additional secured debt at CET21.

CME's negative outlook reflects ongoing pressures in the group's
TV advertising markets and delayed recovery prospects, with
limited visibility.  The (P)Ba3 rating on the new 2017 notes
incorporates this weak positioning of CME's position within the B2
rating category.  Conversely, a stabilization of CME's credit
profile could result in a degree of positive pressure on the
rating of new bond.

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

The CET Group is an entertainment and media company that operates
broadcasting, content and new media businesses in the Czech
Republic and in Slovakia.  The CET Group's main television
channels include TV NOVA (Czech Republic) and TV MARKIZA (Slovak
Republic), which are market leaders based on their all-day and
prime-time audience shares since 1994 and 1996, respectively.
During the year ending 31 December 2009, TV NOVA and TV MARKIZA
had prime-time audience shares of 47% and 33%, respectively.  Over
the same period, the CET Group generated net revenues of US$378
million and OIBDA of US$142 million; and in the six months ending
30 June 2010, the company generated net revenues of US$170 million
and OIBDA of US$53 million.

CME, a Bermuda-incorporated company, is the indirect parent
company of CET Group, of which it owns 100%.  CME is a vertically
integrated media company with networks and content production
units in six Central and Eastern European countries.  Launched in
1994, CME now operates 21 channels.  For the year ending 31
December 2009, after adjusting for the sale of Ukraine, CME
generated net revenues of US$682 million and OIBDA of US$115
million.

                     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.


CET 21: S&P Assigns 'B' Issue Rating to Senior Secured Notes
------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its long-
term corporate credit rating on Bermuda-registered emerging
markets TV broadcaster Central European Media Enterprises Ltd. at
'B'.  The outlook is stable.

At the same time, S&P assigned a 'B' issue rating to the EUR170
million senior secured notes due 2017 issued by CME's subsidiary
CET 21 spol.s.r.o.  The issue rating is in line with, and is
capped by, the CCR on CME.

In addition, S&P lowered to 'B-' from 'B' the issue rating on
CME's US$475 million senior secured convertible notes due 2013,
EUR440 million notes due 2016, and EUR150 million notes due 2014.

"The affirmation follows CME's launch of a EUR170 million senior
secured notes issue at CET 21, CME's main subsidiary that owns the
most profitable Czech and Slovak Republic operations," said
Standard & Poor's credit analyst Patrizia D'Amico.

CME will use EUR115 million of the EUR170 million to refinance its
Czech koruna 2.8 billion (approximately US$160.7 million) facility
in the Czech Republic.  CME is also close to finalizing a CZK1.5
billion revolving credit facility at CET 21.  S&P understands that
CME is planning to use the remaining proceeds of the senior
secured notes (EUR49 million), together with approximately CZK750
million (approximately US$43 million) from the RCF, and some cash
on the balance sheet, to repurchase up to US$200 million of
existing debt.  In S&P's view, the proposed refinancing boosts the
group's maturity profile, leaving CME with no debt due until 2013
and improving the debt maturity profile thereafter.

"Given that the new senior secured notes and the RCF will be
located at CET 21, the amount of structural priority liabilities
relative to total assets has increased above S&P's 30% threshold,
triggering the one-notch downgrade of the existing notes at CME,"
said Ms. D'Amico.

In S&P's opinion, CME's liquidity will remain adequate over the
next few quarters, supported mainly by large cash balances and an
improved debt maturity profile following the refinancing.  This is
despite S&P's view that free cash flow in 2010 will be
significantly negative.  However, in S&P's view, CME's negative
free cash flow is likely to decrease progressively over the next
few quarters, owing to slow improvements in advertising markets,
CME's exit from the heavily loss-making Ukrainian operations, and
the integration of the free cash flow-generating Bulgarian TV
group bTV, which started showing a positive operating trend in the
second quarter of 2010.  S&P therefore anticipates, under its
scenario of a gradual recovery in CME's advertising markets in
2011, that the company may generate or approach positive free cash
flow in 2011.  S&P also anticipates that CME will continue to
sustain or improve both its audience and its advertising market
shares in the foreseeable future.  The outlook does not factor in
any material debt-funded acquisition.

Downward rating pressure could stem from significant operating
underperformance and/or a materially larger deterioration in CME's
liquidity than S&P anticipates over the next few quarters,
including higher-than-anticipated negative free cash flows in 2010
and 2011.  A return to a more aggressive financial policy, such as
a significant debt-funded acquisition resulting in reduced
liquidity and significantly higher leverage than S&P anticipates,
would also weigh negatively on the ratings.

A positive rating action could result from a material improvement
in advertising spending in the company's key markets that
translates into strong EBITDA margin growth, significantly
improved prospects for free cash flow generation, and faster
deleveraging than S&P anticipates.


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I R E L A N D
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EBS BUILDING: Irish Life Mulls Right Issue in Merger Bid
--------------------------------------------------------
Irish Life & Permanent, the country's biggest life assurer and
mortgage lender, is in talks to hire four banks, including
Citigroup and Deutsche Bank, to underwrite a rights offering, Joe
Brennan at Irish Examiner reports, citing two people with
knowledge of the discussions.

According to Irish Examiner, the people, who declined to be
identified because the talks are private, said the lender is also
in talks with Royal Bank of Scotland Group and Davy to manage the
share sale, which would depend on the bank succeeding in its bid
to merge a unit with EBS Building Society, the mortgage lender
being sold by the Irish government.

Irish Life is seeking to separate Permanent TSB, its banking unit,
and combine the division with EBS, Irish Examiner discloses.
Irish Examiner notes to separate the unit Irish Life needs to
provide Permanent with about EUR925 million of additional capital.
Irish Life is pressing the government to provide EBS with a EUR785
million capital injection before the merger, Irish Examiner says,
citing three people with direct knowledge of the matter.

"We've indicated that we will undertake a rights issue in the
event of engaging in a transaction involving EBS," Irish Life
spokesman Ray Gordon said in an e-mail, according to Irish
Examiner.

EBS is seeking to raise the EUR785 million to meet capital
requirements set by the Financial Regulator after racking up
losses on commercial real estate, Irish Examiner discloses.  The
government has already injected EUR350 million of capital into EBS
and has committed to providing the remainder of what's needed if
it does not secure outside investment, Irish Examiner states.

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

                          *     *     *

As reported by the Troubled Company Reporter-Europe on June 7,
2010, Moody's Investors Service downgraded the non-cumulative Tier
1 instruments of EBS Building Society to Ca from Caa1 (issued
through EBS Capital No1 S.A.), and the dated subordinated debt one
notch to Baa1 from A3.  These rating actions follow the issuance
of a "Special Investment Share" to the Irish government that is
similar in scope to a nationalization, and the forthcoming
issuance of a Promissory Note to the government that will provide
capital to the society.  The other ratings of the society
including the D BFSR, the A2 long-term bank deposit and senior
debt rating and the Aa1-rated government guaranteed debt were all
unaffected.


IRISH NATIONWIDE: Bondholders Seek to Band Together
---------------------------------------------------
Jennifer Hughes and Anousha Sakoui at The Financial Times report
that bondholders in Irish Nationwide are seeking to band together
to face the government in potential negotiations over any losses
they could suffer as part of a restructuring.

The effort comes after Brian Lenihan, Ireland's finance minister,
refused to rule out the possibility of a renegotiation with senior
bondholders, as well as holders of subordinated bonds, which take
losses earlier than senior debt, the FT discloses.

According to the FT, holders of some of Irish Nationwide's
subordinated bonds have mandated Bingham McCutchen, the law firm,
to organize a conference call today, Oct. 14, to discuss the
situation and to include senior bondholders.

The FT says the Irish Nationwide bond group is however not
necessarily seeking enough bondholders to help them legally block
any action against them -- a common practice in restructurings --
because it is not clear yet what action the Irish government, with
its far-ranging powers, will take.  The FT relates a person
familiar with the discussions said the group wants to develop a
common approach on how best to interact with the government.

Irish Nationwide has about GBP700 million of debt outstanding from
four bond issues, the FT 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'.  Fitch said 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.


NARA CABLE: Moody's Assigns 'B2' Rating to EUR500 Mil. Notes
------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2 rating
to the EUR500 million of senior secured notes due in 2018 to be
issued by Nara Cable Funding Limited, a financial vehicle
incorporated in Ireland that will on lend the funds to Cableuropa
S.A.U.  Concurrently, Moody's (i) affirmed ONO's B3 corporate
family rating and all other ratings; and (ii) changed the outlook
on all ratings to positive from stable.

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

                         Rating Rationale

"Moody's decision to change the outlook on the ratings to positive
from stable reflects the progress that the company is making in
reducing its refinancing risk in 2013 by extending its debt
maturity profile," says Iv n Palacios, a Moody's Vice President --
Senior Analyst and lead analyst for ONO.  "However, Moody's also
notes that ONO still faces material refinancing challenges in
2013," adds Mr Palacios.

The proposed bond issuance is the second step of a broader
refinancing plan, which was initiated in May 2010, when ONO
reached an agreement with its lenders under the senior facilities
agreement to incorporate part of the facilities due in 2010-2012
into new forward-start facilities due in 2013.

Nara will now issue EUR500 million of senior secured notes, the
proceeds of which will be on lent to Cableuropa, S.A.U. under a
new tranche of the EUR3.6 billion senior facilities agreement and
used to prepay and cancel an equivalent amount of senior bank
debt.  The new notes will therefore rank pari passu with the
existing senior secured facilities.

The (P)B2 rating of the new notes is one notch higher than the B3
CFR, reflecting the impact of the presence of junior debt in the
company's capital structure.  This primarily comprises ONO Finance
II's EUR270 million senior unsecured bond (due 2014) and ONO
Finance's EUR180 million senior unsecured bond (due 2014).

The new bond issuance will have a neutral impact on ONO's
leverage, as the proceeds from the proposed bond will be used to
refinance existing senior bank facilities.  Moody's expects ONO to
report leverage of around 5.3x (as adjusted by Moody's) for
financial year (FY) 2010.  This is a moderate level for the rating
category, and a sign that upward pressure could develop on the
rating over the short to medium term.

ONO's rating has been constrained by liquidity and refinancing
risk considerations, and the issuance of the senior secured bond
due in 2018 is positive because it extends the company's debt
maturity profile and reduces its refinancing wall in 2013.
Nevertheless, the 2013 refinancing wall remains large (around
EUR2.7 billion, post transaction) and will require ONO to continue
improving its debt maturity profile.

Upward rating pressure could develop if ONO (i) progresses in
extending its debt maturity profile; and (ii) management continues
to execute the company's revised business plan against the
backdrop of the tough economic environment in Spain.  More
specifically, Moody's will continue to monitor the extent to which
ONO delivers sustainable operating performance and free cash flow
generation in accordance with its plan and guidance shared with
the market in terms of revenue, EBITDA and free cash flow.

Downward pressure could be exerted on the rating as a result of
(i) a failure by ONO to deliver operational performance in line
with its plan and guidance, in terms of the company making
continued progress in strengthening its credit and cash flow
metrics on a quarterly basis; or (ii) the re-emergence of
liquidity concerns, if ONO fails to proactively address the
refinancing of the 2013 debt maturities.

Moody's most recent rating action on ONO was implemented on 16
April 2010, when the company's outlook was changed to stable from
negative.

Headquartered in Madrid, Cableuropa, S.A.U. (ONO) is Spain's
largest cable operator and leading alternative provider of
telecommunications, broadband and internet and pay-TV services.
It is the only cable operator with national coverage.  In FY 2009,
ONO reported revenues of around EUR1.5 billion and EBITDA of
EUR730 million.

                     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.


PIERSE CONTRACTING: High Court Appoints Interim Examiner
--------------------------------------------------------
BreakingNews.ie reports that the High Court has appointed an
interim examiner to Pierse Contracting and Pierse Building
Services.

According to BreakingNews.ie, Mr. Justice Brian McGovern on
Tuesday evening said he was satisfied to appoint chartered
accountant John McStay as interim examiner to both companies.
BreakingNews.ie notes the firms cited the economic downturn and
cash flow difficulties caused by bad debts of approximately EUR30
million on completed works as the reasons why it has sought the
protection of the courts.

The judge made the matter returnable to later this month,
BreakingNews.ie states.

BreakingNews.ie relates moving the petition on behalf of the
companies, Rossa Fanning BL said that an independent accountant's
report said it believes that the companies have a reasonable
prospect of survival as going concerns if certain steps are taken.
These include getting acceptance from the High Court of an
appropriate scheme of arrangement by the creditors and member of
the company, BreakingNews.ie says.

The firms also require an investment of funds that would support
its future working capital requirements, the continued cooperation
of its key suppliers and contractors, and an agreement with NAMA
of any proposals put forward in respect on ensuring the two firms'
survival, BreakingNews.ie discloses.

Pierse Contracting and Pierse Building Services are involved in
the fitting out and refurbishing of premises for blue chip clients
in Ireland.  The firms, which employed 700 at their peak, now have
211 employees.


PUNCH TAVERNS: Mulls Disposal of 1,300 Outlets to Reduce Debt
-------------------------------------------------------------
Perry Gourley at The Scotsman reports that Punch Taverns on
Wednesday disclosed plans to dispose of 1,300 outlets to reduce
its debt and focus on a core portfolio.

According to The Scotsman, the group, which owns or manages nearly
400 pubs in Scotland, said it wanted to reduce its current holding
of 4,700 pubs and would sell ones where it believed "long-term
viability is compromised" by the year end.

"While we remain committed to the future of the British pub, we
believe that fundamental change in consumer habits will result in
some pubs not surviving," The Scotsman quoted the company as
saying.

The Scotsman relates Punch Taverns reported bottom-line losses of
GBP160 million during the year due to a GBP218 million write-down
on the value of its non-core pubs.  Net debt fell by GBP322
million to GBP3.14 billion, The Scotsman discloses.

As reported by the Troubled Company Reporter-Europe on April 1,
2010, the FT said Punch Taverns, in common with many others in the
UK's pub sector, suffered a torrid few years as the smoking
ban and then recession hurt sales and profits.  The FT disclosed
Punch's debt mountain, accumulated during several years of rapid
expansion, means it has had less flexibility than its rivals to
respond to the downturn.  The company sought to tackle its
narrowing headroom on loan covenants by scrapping its dividend,
raising GBP375 million through an emergency share issue, disposing
of assets and using the money to buy back some of its debt at a
discount, according to the FT.  The FT noted that while net debt,
which peaked at GBP4.9 billion in 2007, had fallen to GBP3.3
billion, this still represents about seven times group earnings
before interest, tax, depreciation and amortization and six times
the group's equity value.  The FT said the company remained highly
leveraged.  Punch's balance sheet stress had been further
compounded by continued weak trading at its core leased and
tenanted business, according to the FT.  Such had been the state
of trading that Moody's, the ratings agency, warned in the autumn
that Punch's credit position was likely to worsen as it would be
difficult to pay back debt at the pace that earnings fell, the FT
said.

Punch Taverns plc -- http://www.punchtaverns.com/-- is a pub
company in the United Kingdom, with over 8,400 pubs across its
leased and managed portfolio.  The Company is engaged in the
trading activities in the operation of public houses either under
the leased model or as directly managed by the Company.  The
leased model involves the granting of leases to tenants who
operate the pub as their own business, paying rent to the Company,
purchasing beer and other drinks from it and entering into profit
sharing arrangements for income from leisure machines.  Pubs that
are directly managed involve the employment of a manager to
operate each managed pub and the Group receives all revenues
generated by the pub and is responsible for costs.  During the
fiscal year ended August 23, 2008, Punch Taverns plc acquired 20
pubs and 39 pubs were sold.


RUSHYDRO FINANCE: Moody's Assigns 'Ba1' Rating to Notes
-------------------------------------------------------
Moody's Investors Service has assigned a (P)Ba1 rating with stable
outlook to the proposed rouble-denominated Loan Participation
Notes to be issued by RusHydro Finance Limited, a special purpose
vehicle, incorporated under the laws of Ireland, of JSC RusHydro,
for the sole purpose of financing a loan to RusHydro.

                        Ratings Rationale

The (P) Ba1 rating assigned to the Notes is equivalent to
RusHydro's corporate family rating, given that RusHydro Finance is
issuing the Notes for the sole purpose of financing a loan to
RusHydro and therefore Noteholders are relying solely on the
latter's creditworthiness to service and repay the Notes.
RusHydro will use proceeds of the respective loan for general
corporate purposes, including investments.  The provisional rating
and provisional LGD assessment of LGD4 are based on the assumption
that the Notes will rank pari passu with other senior unsecured
and unsubordinated financial indebtedness of RusHydro (apart from
obligations mandatorily preferred by law).  The proposed Notes are
subject to some restrictions and covenants, including a limitation
on incurrence of indebtedness.  Moody's issues provisional ratings
in advance of the final sale of securities and these ratings
reflect Moody'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 Notes.  A definitive rating may differ from a provisional
rating.

Moody's regards RusHydro as a government-related issuer.  In
accordance with Moody's GRI rating methodology, the ratings of
RusHydro and of the proposed Notes incorporate uplift from
RusHydro's standalone credit quality measured by a Baseline Credit
Assessment of 13 (on a scale of 1 to 21 and equivalent to Ba3).
The uplift to the BCA is driven by the credit quality of the
Russian government, which owns around 60% of the company's shares,
and Moody's assessment of strong probability of state support in
the event of financial distress, as well as high default
dependence between the company and the government.

RusHydro's ratings remain constrained by the low visibility of the
evolution of its credit profile in the medium term, with headroom
under the company's financial metrics regarded as transitional.
At the same time, the ratings are underpinned by the company's
strong business fundamentals as Russia's largest low-cost hydro
generator, which is well positioned to benefit from the
liberalization of Russia's wholesale power market and should be
able to absorb the risks of market fluctuations.

The outlook on the ratings is stable, factoring in the headroom in
the company's financial profile at the end of 2009 and its
expected medium-term development within the current rating
category and acceptable liquidity.  Moody's currently considers an
upward revision in RusHydro's ratings to be unlikely in the near
term as the company's credit profile is expected to evolve,
pressured by the challenges both specific to the company and the
Russian electric utility sector.

RusHydro's BCA could be negatively impacted, if there were a
negative shift in the evolving regulatory and market framework and
the company failed to limit deterioration of its financial
profile, with the Debt-to-EBITDA ratio above 3x, while FFO
interest coverage and the RCF-to-Debt ratios fall below 5.0x and
30%, respectively.  The company's inability to maintain adequate
liquidity could also pressure the rating.  Negative pressure on
the rating could also result from Moody's assessment of a material
reduction in the probability of state support.

Headquartered in Moscow, RusHydro is Russia's largest generator of
hydro electricity.  RusHydro is controlled by the Russian
government, whose stake in the company is approximately 60%.  In
2009, the company's contribution to Russia's total installed
capacity and electricity output was around 12%, if the SS HPP
capacity was counted, and 9%, respectively.  In 2009, RusHydro's
IFRS revenues were RUB115.6 billion (approximately US$3.7
billion).

                     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, confidential and proprietary
Moody's Analytics' 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.


=========
I T A L Y
=========


ARES FINANCE: Fitch Junks Ratings on Two Classes of Notes
---------------------------------------------------------
Fitch Ratings has downgraded Ares Finance S.r.l.'s class E and F
floating-rate notes, due March 2011, and assigned Recovery
Ratings:

  -- EUR11.9m class E (XS0134905388): downgraded to 'CCsf' from
     'BBsf'; 'RR3' assigned

  -- EUR15m class F (XS0134905545): downgraded to 'Csf' from
     'Bsf'; 'RR6' assigned

The downgrade reflects the further weakening in collections
performance, as of September 2010, which is expected to result in
a failure to repay the outstanding notes by the legal final
maturity in March 2011.  Between March and September 2010, gross
recoveries were only EUR10.1 million, the lowest level since
transaction closing in September 2001 and, compared to EUR18.7
million for the six-month period to March 2010, below Fitch's
expectations for the period.  Total cumulative gross collections
as of September 2010 were EUR770.1 million.

The ongoing delays between the final resolution of claims in the
distribution phase and the actual receipt of collections by the
servicer expose the remaining classes to a notable risk of a
missed principal payment.  Although Fitch believes that the
portfolio will be able to continue to generate recoveries after
March 2011, according to the transaction documentation the notes
will be cancelled by legal final maturity.  As a result, the
noteholders will have no further claims against the collateral
after March 2011.

Approximately EUR24 million of expected recoveries from positions
with full court resolution are currently either deposited in
tribunal accounts or pending payment of the auction price.  The
distribution process has been remarkably inefficient throughout
the life of the transaction.  This has slowed down the repayment
of the notes, while increasing expenses including servicer, legal
and asset manager fees.  In the last collection period, net
recoveries available for distribution after senior fees (EUR3.4
million) were only EUR6.7 million.

Although 16% of the outstanding portfolio by gross book value is
in the distribution phase, 72% by GBV consists of bankrupted
claims, for which the recovery timing is generally longer than for
claims where a borrower is solvent.  Moreover, the longer
timeframe of tribunals in central and southern Italy also explains
the delayed resolution of many claims at an advanced legal stage.

Ares Finance S.r.l. is a securitization of a portfolio of Italian
NPLs serviced and managed by Societa Gestione Crediti
S.r.l./Archon Group Italia S.r.l. (rated 'RSS2+'/'CSS2+').  As of
September 2010, the outstanding portfolio consisted of 3,923
unresolved claims with a total GBV of EUR834.7 million.  At
closing, the GBV of the pool was EUR1,540.4 million.  The pool is
mainly located in central and southern Italy (36% and 34% by GBV,
respectively) and primarily consists of residential claims (33% by
GBV).


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


BOZEL SA: Gets Nod to Hire BDO as U.S. Financial Advisor
--------------------------------------------------------
Bozel S.A. sought and obtained authorization from the U.S.
Bankruptcy Court for the Southern District of New York to employ
BDO Consulting Corporate Advisors, LLC, as financial advisor to
the Debtor effective as of August 6, 2010.

BDO Consulting will, among other things:

     -- at the request of the Debtor's sole director, marshall and
        analyze the books and records of the Debtor and Bozel LLC
        and perform analysis as required;

     -- at the request of the Debtor's sole director, assist in
        managing the day-to-day affairs of the Debtor and Bozel
        LLC;

     -- prepare and file with the Court all required financial and
        operational reports of the Debtor; and

     -- at the request of the Debtor's sole director, develop
        financial and management presentations of the Debtor or
        Bozel LLC as may be required.

BDO Consulting will be paid based on the hourly rates of its
personnel:

        Partners/Managing Directors               US$550 to US$800
        Directors/Senior Managers/Principals      US$350 to US$600
        Managers/Vice Presidents                     US$225-US$500
        Seniors/Associates                           US$200-US$350
        Staff                                        US$125-US$225

To the best of the Debtor's knowledge, BDO Consulting is a
"disinterested person," as that term is defined in section 101(14)
of the Bankruptcy Code, as modified by section 1107(b) of the
Bankruptcy Code.

Bozel S.A. is a mineral mining company based in Luxembourg.

Bozel S.A. sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
10-11802) on April 6, 2010.  In its petition, the Debtor estimated
assets ranging from US$50 million to US$100 million, and debts
ranging from US$10 million to US$50 million.  William F. Savino,
Esq., Daniel F. Brown, Esq., and Beth Ann Bivona, Esq., at Damon
Morey LLP in Buffalo, N.Y., represent the Debtor.


===========
P O L A N D
===========


* Marek Krol Joins Chadbourne's Warsaw Office
---------------------------------------------
The international law firm Chadbourne & Parke LLP disclosed that
top Polish banking and finance attorney Marek Krol has joined the
firm as an international partner and in the Warsaw office.

Mr. Krol was most recently a partner at CMS Cameron McKenna, where
he served as head of the banking and finance department.
Previously, he led the structured finance department at White &
Case.

Mr. Krol advises clients on banking and finance transactions,
including project financing, real estate investments, syndicated
loans, air transportation and maritime equipment purchase
financing, loan repayments, bond issues, debt instruments and
securitization.  He has extensive experience advising on real
estate finance projects involving hotels, office buildings and
commercial and recreational centers.  Mr. Krol has represented
clients in negotiations for the acquisition of large commercial
properties, obtaining administrative approvals, fund formation and
negotiating lease agreements with commercial building owners.

Mr. Krol previously worked for the Polish government in the legal
department of the Ministry of Foreign Economic Cooperation, the
Ministry of Foreign Trade and the Ministry of Foreign Affairs.  He
also served at KPMG Poland and as legal director in a major Polish
bank, where he advised on the formation of bank syndicates
financing some of the largest investment projects in Poland.

"Marek's inside knowledge of the Polish banking system, as well as
his project finance experience, make him an excellent fit for
Chadbourne," said Chadbourne Managing Partner Charles K. O'Neill.
"As our Warsaw office prepares to celebrate its 20th anniversary,
the addition of Marek to our finance team demonstrates our
commitment to the Polish banking and finance industry and enhances
our ability to provide clients with sound legal advice on even the
most complex transactions."

"Chadbourne is very pleased to welcome Marek as we strengthen our
finance practice in Warsaw," said Wlodzimierz Radzikowski,
Managing Partner of Chadbourne's Warsaw office. "His robust
experience and skill in the banking and finance sectors make him a
tremendous asset to our team and our clients."

Mr. Krol is a graduate of the Faculty of Law and Administration
and the Faculty of Political Sciences at the University of Warsaw.

                  About Chadbourne & Parke LLP

Chadbourne & Parke LLP -- http://www.chadbourne.com/--
an international law firm headquartered in New York City,
provides a full range of legal services, including mergers and
acquisitions, securities, project finance, private funds,
corporate finance, venture capital and emerging companies,
energy/renewable energy, communications and technology, commercial
and products liability litigation, arbitration/IDR, securities
litigation and regulatory enforcement, special investigations and
litigation, intellectual property, antitrust, domestic and
international tax, insurance and reinsurance, environmental, real
estate, bankruptcy and financial restructuring, employment law and
ERISA, trusts and estates and government contract matters.  Major
geographical areas of concentration include Russia, Central and
Eastern Europe, the Middle East and Latin America.  The Firm has
offices in New York, Washington, DC, Los Angeles, Mexico City, Sao
Paulo, London, Moscow, St. Petersburg, Warsaw, Kyiv, Almaty, Dubai
and Beijing.


=============
R O M A N I A
=============


BLUE AIR: Request for Suspension of Insolvency Procedures Rejected
------------------------------------------------------------------
The Bucharest Court of Law rejected Blue Air's request for
suspension of insolvency procedures brought by four of its
creditors, Financiarul.ro reports, citing judiciary administrator
Remus Borza of Assistance Insolv.

"Bucharest Tribunal rejected on October 6 the Blue Air request for
the suspension of the insolvency procedure and as such this
procedure has been launched.  We are to continue the process of
company restructuring, so that these debts are paid," Financial.ro
quoted Mr. Borza as saying.

According to Financial.ro, Mr. Borza said Blue Air owes EUR200,000
to creditors.

The company insists that the insolvency was eschewed through the
debt payment to the companies who filed the lawsuit, Financial.ro,
notes.

As reported in the Troubled Company Reporter-Europe on Oct. 12,
2010, MEDIAFAX said the Bucharest Court allowed insolvency claims
against Blue Air filed by airline Carpatair and Service Excellence
Solutions.  MEDIAFAX disclosed Blue Air representative Florentina
Ivan said the airline will challenge the court's ruling as it
registers no debts to the two companies.  Gheorghe Racaru, the
parent group's strategy and development manager said Blue Air will
continue to operate, either on its own or under a court-appointed
Administrator, according to MEDIAFAX.

Blue Air is the largest Romanian private air operator.  The
airline operates flights to more than 50 destinations in Europe,
being the official transporter for the Romanian Posts.  It offers
tickets to destinations outside Europe, in partnership with Blue
Panorama.


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


B&N BANK: Moody's Assigns 'B2' Rating to Senior Unsec. Bonds
------------------------------------------------------------
Moody's assigns a B2 long-term global local currency debt rating
to B&N Bank's senior unsecured RUB1 billion bond issuance maturing
in 2013.  The rating carries a stable outlook.  Any subsequent
senior debt issuance by B&N Bank will be rated at the same rating
level subject to there being no material change in the bank's
overall credit rating.

                        Ratings Rationale

The assigned rating is in line with B&N Bank's global local
currency deposit rating, which is in turn based on the bank's E+
Bank Financial Strength rating, which maps to a baseline credit
assessment of B2.  The deposit and debt rating of B2 does not
incorporate any uplift either from shareholder or from systemic
support.

B&N's BFSR is primarily constrained by, the challenging operating
environment in Russia, relatively high concentrations in the loan
portfolio, current pressure on profitability in consequence of
asset quality deterioration and a squeeze in interest margins, and
some corporate governance and risk management issues - which is,
however, common for Russian banks.  The rating also takes into
account the bank's good visibility in the retail-deposit-taking
market, adequate geographical diversification of its business
within Russia and satisfactory financial indicators - notably,
capitalization and a sound liquidity profile.

Headquartered in Moscow, Russia, B&N Bank reported total assets of
RUB85.3 billion and net loss of RUB1,661 million according to IFRS
at YE 2009.

                     Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, public 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.


CREDIT BANK: Moody's Assigns 'B1' Rating to Senior Unsec. Debt
--------------------------------------------------------------
Moody's assigns a B1 long-term global local currency debt rating
to Credit Bank of Moscow's senior unsecured debt.  The rating
carries a Stable outlook.  Any subsequent senior debt issuance by
CBM will be rated at the same rating level subject to there being
no material change in the bank's overall credit rating.

The rating of B1 was assigned to these debt instruments;

  -- RUB3,000M Senior Unsecured Regular Bond due 4/08/2015
  -- RUB2,000M Senior Unsecured Regular Bond due 7/14/2015
  -- RUB2,000M Senior Unsecured Regular Bond due 8/07/2012
  -- RUB2,000M Senior Unsecured Regular Bond due 4/25/2012
  -- RUB2,000M Senior Unsecured Regular Bond due 3/15/2011

                        Ratings Rationale

The assigned rating is in line with CBM's global local currency
deposit rating of B1, which is in turn based on the bank's E+ BFSR
(mapping to a baseline credit assessment of B1).  It does not
incorporate any expectation of systemic or shareholder support for
CBM in case of need.

The rating is constrained by CBM's modest market positions,
significant exposure to market risk which renders profitability
volatile, moderately high risk appetite and potentially vulnerable
liquidity which is dependent on volatile sources.  More
positively, the BFSR reflects the bank's established market
positions in certain niches, resulting in solid stable income
generation power, reasonable efficiency, and historically adequate
capitalization supported by the shareholder.

Headquartered in Moscow, Russia, Credit Bank of Moscow reported
total assets of RUB87 billion and net income of RUB780 million
according to IFRS at YE 2009.

                      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.

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.


GAZPROMBANK OAO: Moody's Assigns Long-Term Rating to Senior Debt
----------------------------------------------------------------
Moody's assigns a Baa3 long-term global local currency debt rating
to Gazprombank's senior unsecured debt.  The rating carries a
stable outlook.  Any subsequent senior debt issuance by
Gazprombank will be rated at the same rating level subject to
there being no material change in the bank's overall credit
rating.

The rating of Baa3 was assigned to these debt instruments

  -- RUB5,000M Senior Unsecured Regualar Bond due 1/27/2011
  -- RUB10,000M Senior Unsecured Regualar Bond due 10/10/2011
  -- RUB20,000M Senior Unsecured Regular Bond due 11/15/2012
  -- RUB20,000M Senior Unsecured Regular Bond due 11/22/2012
  -- RUB5,000M Senior Unsecured Regular Bond due 11/20/2013

                        Ratings Rationale

The assigned rating is in line with Gazprombank global local
currency deposit rating of Baa3, which is in turn based on (i) the
bank's E+ BFSR (mapping to a baseline credit assessment of B2);
and (ii) Moody's assessment of a high probability of support in
the event of need from either Gazprom (stand-alone credit risk
profile equivalent to a Ba1 and an issuer rating of Baa1/stable)
or the Russian authorities (debt rating of Baa1/stable) --which
results in a five notch uplift from its B2 BCA.

The E+ BFSR is constrained by potential corporate governance
issues that reflect Gazprombank's role in fulfilling economic
objectives for Gazprom and the state: it is extensively involved
in financing projects and undertaking acquisitions for Gazprom
(potentially undermining its capital and liquidity position) and
acts as a tool to support the banking sector and the real economy
in times of crisis.  The BFSR is also constrained by the bank's
modest capital position, which suffered one-off losses from its
derivative and securities positions, high level of earnings
volatility, and high single-name and sectoral concentrations on
both sides of the balance sheet.  The BFSR also reflects the
difficult operating environment.

The rating is, however, underpinned by Gazprombank's well-
established franchise in servicing Russia's gas industry and
related industries, stemming from: (i) its role as the house bank
for Gazprom; (ii) its better-than-average access to liquidity
thanks to its link with Gazprom and its role as a government agent
in promoting its economic objectives; (iii) its position as the
third-largest bank in the country; and (iv) its exposure to the
country's largest companies, which are important for the economy
and are eligible for state assistance in times of crisis.

The bank's Baa3 global local currency deposit rating is based on
Moody's assessment of a very high probability of support from
either Gazprom or the Russian authorities in the event of need,
based on Gazprombank's state ownership and importance to Gazprom's
operations and the banking system as a whole, as the third-largest
bank in Russia.

Headquartered in Moscow, Russia, Gazprombank reported total assets
of US$57.6 billion and net income of US$1.9 billion according to
IFRS at YE 2009.

                     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.

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.


MOSCOW BANK: Moody's Assigns 'B1' Rating to Senior Unsec. Debt
--------------------------------------------------------------
Moody's assigns a B1 long-term global local currency debt rating
to senior unsecured debt of Moscow Bank for Reconstruction and
Development.  The rating carries a stable outlook.  Any subsequent
local currency senior unsecured debt issuance by MBRD will be
rated at the same rating level subject to there being no material
change in the bank's overall credit rating.

The rating of B1 was assigned to these debt instruments:

  -- RUB5,000M Senior Unsecured Regular Bonds due 12.06.2014
  -- RUB5,000M Senior Unsecured Regular Bonds due 27.02.2014
  -- RUB3,000M Senior Unsecured Regular Bonds due 23.04.2013
  -- RUB3,000M Senior Unsecured Regular Bonds due 28.03.2013

                        Ratings Rationale

The assigned rating is in line with MBRD's global local currency
deposit rating, which is in turn based on (i) the bank's E+ BFSR
(mapping to a baseline credit assessment of B2); and (ii) Moody's
assessment of a moderate probability of support in the event of
need from the bank's controlling shareholder -- JSFC Sistema
(Sistema, rated Ba3 with stable outlook) -- which results in a
one-notch uplift from the bank's B2 BCA.

MBRD's E+ BFSR is constrained by the bank's still considerable
(albeit somewhat reduced) credit exposure to related parties, the
significant concentration of the loan portfolio and funding base,
its weak financial performance and the deterioration of its asset
quality.  At the same time, MBRD's rating reflects the ongoing
strategic and operational assistance provided to the bank by its
parent, which is proven, inter alia, by regular capital injections
to the bank and the provision of subordinated loans, as well as by
the funding support stemming from Sistema group of companies.

Moody's maintains its assumptions of a moderate probability of
parental support to MBRD from Sistema (which controlled directly
or indirectly 96.15% in MBRD as at YE2009), in case of need.  The
rating agency also recognizes the high degree of interdependence
between the parent and the subsidiary, as evidenced by deep
involvement of MBRD in providing financial services to Sistema
companies and the bank's high reliance on funding inflowing from
the related parties.  These assumptions currently result in a one-
notch uplift of MBRD's deposit ratings to B1 from the bank's BCA
of B2.

Headquartered in Moscow, Russia, MBRD reported total consolidated
assets of US$7.3 billion, total equity of US$354 million and net
loss of US$89 million according to IFRS at 31 December 2009.

                     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.

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.


MOSCOW MORTGAGE: Moody's Assigns 'Ba2' Rating to Senior Debt
------------------------------------------------------------
Moody's assigns a Ba2 long-term global local currency debt rating
to Moscow Mortgage Agency's senior unsecured debt.  The rating
carries a Stable outlook.  Any subsequent senior debt issuance by
MMA will be rated at the same rating level subject to there being
no material change in the bank's overall credit rating.

The rating of Ba2 was assigned to these debt instruments:

  -- RUB1,500M Senior Unsecured Regular Bond due 23.02.2012
  -- RUB2,000M Senior Unsecured Regular Bond due 17.07.2014

                        Ratings Rationale

The assigned rating is in line with MMA's Ba2 global local
currency deposit rating, which is in turn based on (i) the bank's
E+ BFSR (mapping to a baseline credit assessment of B3); and (ii)
Moody's assessment of a high probability of support in the event
of need from the bank's controlling shareholder -- City of Moscow
(Baa1/Stable) -- which results in a multi- notch uplift from its
B3 BCA.

The BFSR is constrained by the limitations of MMA's niche market
-- predominantly under the City of Moscow's funding programs --
which makes its business potentially exposed to changes in the
strategic priorities of the City's government.  It also results in
low efficiency of capital usage and suppressed stable revenue
generation, compared with independent market players.  In
addition, the nature of MMA's business results in significant
long-term exposures to the construction sector.  Retail lending
risks are significantly mitigated by the natural credit
enhancements and nature of regional concentration (Moscow region),
although its corporate loan book is more vulnerable, and is
exposed to the longer term macroeconomic shocks.  Funding has
historically been significantly dependant on the shareholders'
desire to provide financing (including through MMA's sister bank
-- Bank of Moscow) and wholesale funding.  As a result, any
significant rise in third-party leverage could trigger a
significant liquidity squeeze, if refinancing is not an option.

At the same time, the rating is supported by the willingness and
ability of the shareholders to provide on-going capital,
compensation of expenses and funding support, and the high
barriers to MMA's niche market which shields it from competition.
MMA could find it difficult to withstand competition, due to its
low historical expertise in operating in a competitive
environment.  In addition, retail portfolio exposure benefits from
better-than-average asset quality due to natural credit
enhancements (e.g., low LTV ratios) and operations in the Moscow
region that demonstrate less volatility compared with other
regions.

MMA's Ba2 long-term deposit rating is based on Moody's assessment
that there is a high probability of its 100% owner - the City of
Moscow (Baa1/Stable) - extending support to the bank in the event
of need.  The likelihood of support is confirmed by its policy
role, successive capital injections from the city government since
MMA's inception in 2000, and by the presence of high-ranking
Moscow officials on its supervisory board.

Headquartered in Moscow, Russia, Moscow Mortgage Agency reported
total assets of RUB10.6 billion and net income of RUB70 million
according to IFRS at YE 2009.

                     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.

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.


PETROCOMMERCE BANK: Moody's Assigns 'Ba3' Long-Term Debt Rating
---------------------------------------------------------------
Moody's assigns a Ba3 long-term global local currency debt rating
to Petrocommerce Bank's senior unsecured debt.  The rating carries
a negative outlook.  Any subsequent senior debt issuance by
Petrocommerce will be rated at the same rating level subject to
there being no material change in the bank's overall credit
rating.

The rating of Ba3 was assigned to these debt instruments:

  -- RUB5,000M Senior Unsecured Regular Bond due 21.12.2014
  -- RUB3,000M Senior Unsecured Regular Bond due 06.07.2011
  -- RUB3,000M Senior Unsecured Regular Bond due 22.08.2012
  -- RUB3,000M Senior Unsecured Regular Bond due 22.08.2012

                        Ratings Rationale

The assigned rating is in line with Petrocommerce's global local
currency deposit rating, which is in turn based on the bank's D-
Bank Financial Strength Rating (mapping to a baseline credit
assessment of Ba3.

The bank's rating is constrained by the bank's currently high
level of problem loans, notable reduction (by 23%) in the bank's
loan book in 2009, which negatively affects the bank's
profitability and efficiency, and recently increased market risk
appetite as a large portion of assets is invested in Russian
fixed-income and equity securities.  However, the rating is
supported by the high capital adequacy maintained by the bank
despite the severe stress, a sizeable cushion of very liquid
assets and its strong links with Lukoil and IFD Kapital Group,
which renders Petrocommerce's deposit base sticky and underpins
its revenue.

Headquartered in Moscow, Russia, Petrocommerce Bank reported total
assets of RUB172 billion and net income of RUB12 million according
to IFRS at YE 2009.

                      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.

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.


RUSHYDRO FINANCE: Fitch Assigns 'BB+' Senior Unsecured Rating
-------------------------------------------------------------
Fitch Ratings has assigned RusHydro Finance Limited's prospective
rouble-denominated Eurobond issue an expected local currency
senior unsecured rating of 'BB+'.  RusHydro Finance Limited is a
finance vehicle for JSC RusHydro, the Russian hydro electricity
generation company.  The agency has also assigned RusHydro a Long-
term local currency Issuer Default Rating of 'BB+' with a Positive
Outlook.  RusHydro's Long-term foreign currency IDR is 'BB+' with
a Positive Outlook and its National Long-term rating is 'AA(rus)'
with a Positive Outlook.

The final rating of the Eurobond issue is contingent upon the
receipt of final documentation conforming materially to
information already received by Fitch.

Proceeds from the bonds are expected to be used by RusHydro for
capital expenditure and general corporate purposes.

On 10 September 2010, Fitch revised the Outlook for RusHydro to
Positive from Stable following Fitch's revision of the Russian
Federation's ratings Outlook to Positive from Stable.  RusHydro
had negative net leverage (net adjusted debt/EBITDAR) at year-end
2009.  Fitch's five-year forecast is for the company to maintain
very low net leverage (less than 1x) and funds from operations
interest coverage above 8x.  RusHydro's ratings are notched down
by two levels from the sovereign's due to its state ownership, the
strategic importance of the company to the state, and its reliance
on investment funding from the state.


TRANSCREDITBANK JSC: Moody's Assigns 'Ba1' Rating to Senior Debt
----------------------------------------------------------------
Moody's assigns a Ba1 long-term global local currency debt rating
to TransCreditBank's senior unsecured debt.  The rating carries a
Stable outlook.  Any subsequent senior debt issuance by TCB will
be rated at the same rating level subject to there being no
material change in the bank's overall credit rating.

The rating of Ba1 was assigned to these debt instruments:

  -- RUB5,000M Senior Unsecured Regular Bond due 2011
  -- RUB3,000M Senior Unsecured Regular Bond due 2012
  -- RUB3,000M Senior Unsecured Regular Bond due 2013
  -- RUB4,0000M Senior Unsecured Regular Bond due 2014

                        Ratings Rationale

The assigned rating is in line with TCB's global local currency
deposit rating of Ba1, which is in turn based on (i) the bank's D-
BFSR (mapping to a baseline credit assessment of Ba3); and (ii)
Moody's assessment of a high probability of support in the event
of need from the bank's controlling shareholder -- Russian
Railways (Baa1/Stable) -- which results in a two -- notch uplift
from its Ba3 BCA.

The D- BFSR is underpinned by (i) TCB's solid franchise which is
supported by its relationship with Russian Railways, a state
railroad monopoly, (ii) its good brand recognition, (iii)
reasonable liquidity management supported by good access to
funding sources and (iv) reasonable financial indicators
demonstrating some resilience to crisis events.

At the same time, the BFSR is constrained by (i) still
insufficient diversification of the client base and the resulting
high dependence on a single client/related party/industry
resulting in significant concentration levels on the asset and
liabilities side, (ii) significant dependence on strategic
priorities of RR in its longer-term development, and (iii)
potential corporate governance issues stemming from potential
ability of RR to influence business decisions.

The Ba1 Global Local Currency deposit rating is based on Moody's
assessment of high probability of support from RR in the event of
need, given TCB's controlling ownership by RR and importance for
its operations.

Headquartered in Moscow, Russia, TransCreditBank reported total
assets of RUB258 billion and net income of RUB4 billion according
to IFRS at YE 2009.

                     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.

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.


* Fitch Affirms 'BB-' Long-Term Ratings on Ulyanovsk Region
-----------------------------------------------------------
Fitch Ratings has affirmed the Ulyanovsk Region's Long-term
foreign and local currency ratings at 'BB-' and the region's
Short-term foreign currency rating at 'B'.  The agency also
affirmed the region's National Long-term rating at 'A+(rus)'.
All the Long-term rating Outlooks are Stable.

The affirmation of the region's ratings reflects satisfactory
budgetary performance, low direct risk and low contingent
liabilities.  However, the ratings also factor in a weak socio-
economic profile and modest self-financing capacity of capital
outlays.  Sustainable improvement of the region's operating
balance at above 10% of operating revenue, coupled with
maintenance of moderate indebtedness, would be positive for the
ratings.  Downward rating pressure would arise from significant
growth of debt leading to deterioration of the debt coverage
ratio.

The region's budgetary performance improved in 2009, with its
operating balance increasing by 2.3x, reaching 9% of operating
revenue compared with 4.6% in 2008.  This increase was supported
by a 45% increase in current transfers from the federal budget in
2009, which compensated for the stagnation of tax revenue.  Fitch
expects the region's full-year operating balance to be about 11-
12% of operating revenue in 2010.

The region's direct risk increased in 2009 to RUB2.1 billion from
RUB1.1 billion in 2008, but remained low at 9.2% of current
revenue.  During the first eight calendar months of 2010 (8M10),
direct risk further increased to RUB2.4 billion and is likely to
remain at this level until end-2010.  Relatively cheap federal
budget loans compose 75% of direct risk stock while the remaining
25% consists of bank loans.  Both budget and bank loans have
maturities in 2012-15, which eliminates short-term refinancing
risk.

Fitch does not expect the direct risk to rise significantly above
10% of current revenue in 2010-12.  Direct risk to the current
balance ratio should not exceed 1.5 years, as the region has no
intention of increasing its debt stock in the medium-term.  The
region's contingent risk is low and solely composed of the debt of
region's public-sector entities; it totalled a negligible RUB48
million in 2009 and is fully self-serviced by the companies.

Capital expenditure accounted for 26.8% of total expenditure in
2009.  Despite significant capital spending, the region recorded a
minor surplus before debt variation (0.3% of total revenue), as
76% of total capex was financed by capital transfers from the
federal budget.  Fitch expects capital expenditure to be lower in
2010-12, averaging 15% of the total due to the completion of major
infrastructure projects.

The region's socio-economic profile is weaker than that of the
average Russian region.  The per capita gross regional product was
26% below the national median in 2008, while per capita income was
81% of the national median in 2008.  In 2009, GRP declined by a
significant 15%, driven by a 17% decrease in the industrial
sector, which dominates the regional economy.  However, the
economy demonstrates fast recovery, as industrial output in the
region increased by 34% in H110.  Therefore, the administration
forecasts GRP to rise by around 10% yoy in 2010.

Ulyanovsk, in the centre of European Russia, is part of the
Privolzhskiy Federal District.  It contributed 0.4% of national
GDP in 2008 and accounted for 0.9% of the country's population.


=========
S P A I N
=========


ABENGOA FINANCE: Fitch Assigns 'BB' Rating to Senior Notes
----------------------------------------------------------
Fitch Ratings has assigned Abengoa Finance, S.A.U. proposed US$600
million senior unsecured notes due 2017 an expected rating of
'BB'.  The final rating is contingent upon the receipt of final
documents conforming to information already received.

Abengoa Finance is fully owned by Abengoa, S.A. (rated
'BB'/Outlook Stable), a Spanish engineering and construction
company with operations in renewable energy, bio-fuels, power
infrastructure, environmental and IT services.

The notes will be jointly, severally and irrevocably guaranteed by
Abengoa, and its key subsidiaries in engineering, bioenergy and
environmental services divisions.  The notes and note guarantees
will rank equally with Abengoa's existing credit facilities and
notes.


FONDO DE TITULIZACION: S&P Affirms Low-B Ratings on Various Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on Fondo
de TitulizaciOn de Activos Santander Hipotecario 2's class A, B,
C, D, and E notes.

The rating actions follow S&P's credit analysis of this
transaction based on the most recent information S&P has received
as of July 2010.

Based on this information, the credit enhancement for Santander
Hipotecario 2 remains commensurate with the current ratings on the
notes, in S&P's opinion.

Due to a significant portion of loans defaulting and being
provisioned for with available resources in the transaction, the
transaction has already used its entire cash reserve.  This is
reflected in the 'B (sf)' and 'B- (sf)' ratings on the class D and
E notes, respectively.

S&P had already lowered its rating on the class F notes in this
transaction to 'D (sf)' in July 2009 after missed interest
payments.

When the percentage of cumulative defaulted loans over the
original balance of the class A to E notes in this transaction
reaches a certain level, the priority of payments changes so as to
postpone interest payments to the related class of notes and
divert these funds to amortize the most senior class of notes.
This mechanism aims to protect the most senior classes of notes,
while increasing the default probability of the more junior
classes of notes as cumulative defaults increase.  Specifically
the trigger levels for the class B, C, D, and E notes are 17.0%,
12.5%, 10.0%, and 7.0%, respectively.  However, the relatively
high trigger levels limit the protection available for the senior
notes, in S&P's view.  This is reflected in the 'AA (sf)' rating
on the class A notes.

As of the last payment date for this transaction, the ratio of
cumulative defaults over the original balance was 1.36%, up from
0.52% about a year before.  S&P therefore believe that the
triggers in Santander Hipotecario 2, for all classes of notes,
will not be reached in the near future.

The portfolio in this transaction securitized mortgages granted to
individuals for the acquisition of residential properties and with
loan-to-value ratios higher than 80%.  Banco Santander S.A.
originated the loans.

                          Ratings List

     Fondo de Titulizacion de Activos Santander Hipotecario 2
    EUR1.973 Billion Mortgage-Backed Floating-Rate Notes and an
               Overissuance of Floating-Rate Notes

                        Ratings Affirmed

                       Class      Rating
                       -----      ------
                       A          AA (sf)
                       B          BBB (sf)
                       C          BB (sf)
                       D          B (sf)
                       E          B- (sf)

                        Rating Unaffected

                       Class      Rating
                       -----      ------
                       F          D (sf)


TDA 24: Default Risk Cues S&P to Lower Rating on Class D Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit rating on
TDA 24, Fondo de Titulizacion de Activos' class D notes due to
increased default risk.  At the same time, S&P put on CreditWatch
negative its ratings on the class C and D notes and affirmed its
ratings on the class A1 and A2 notes.

The rating actions follow a review of this transaction based on
the September 2010 investor report.  Cumulative defaults, as a
percentage of the original pool balance, have increased to 2.96%
in August 2010, from 2.48% in March 2010 and 1.78% in October
2009.  In September 2009, TDA 24 completely depleted its cash
reserve because of rapidly increasing defaults, coupled with a
structural mechanism that requires a full provisioning for
defaulted loans (defined as loans in arrears for more than 12
months).

The increasing cumulative default level raises the risk that
interest deferral triggers could be breached.  These triggers
state that if the cumulative level of defaulted loans reaches
certain levels over the original balance of the mortgage-backed
notes, the priority of payments changes to divert the interest
payments from the related class of notes toward amortizing the
most senior notes.

The class B, C, and D notes' trigger levels are 6.10%, 4.70%, and
3.50%, respectively.  As of August 2010, the ratio of cumulative
defaults over original balance was 2.96%.  As a result, S&P
considers that interest on the class D notes could be deferred and
therefore default in the near future if the increase of cumulative
defaults continues at its current pace (it has risen to 2.96% in
August 2010 from 1.39% in August 2009).

In S&P's opinion, the current high level of arrears and defaults,
and the pace at which they are rising, could have a negative
effect on the class B and C notes' creditworthiness.  For this
reason, S&P has placed these on CreditWatch negative.  S&P will
now perform a further credit and cash flow analysis to resolve
these CreditWatch placements.

TDA 24 is a residential mortgage-backed securities transaction
that closed in January 2005.  It securitizes a portfolio of
residential mortgage loans secured over properties in Spain.  Caja
de Ahorros de Castilla La Mancha, Credifimo, and Bankpyme
originated and service the loans.

                          Ratings List

            TDA 24, Fondo de Titulizacion de Activos
         EUR485 Million Mortgage-Backed Floating-Rate Notes

                         Rating Lowered

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

             Ratings Placed on CreditWatch Negative

                              Rating
                              ------
       Class        To                           From
       -----        --                           ----
       B            BBB+ (sf)/Watch Neg          BBB+ (sf)
       C            BB- (sf)/Watch Neg           BB- (sf)

                        Ratings Affirmed

                      Class        Rating
                      -----        ------
                      A1           AAA (sf)
                      A2           AAA (sf)


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


UBS AG: Fitch Upgrades Individual Rating to 'C' From 'D'
--------------------------------------------------------
Fitch Ratings has upgraded UBS AG's Individual Rating to 'C' from
'D'.  At the same time, Fitch has affirmed UBS's Long-term Issuer
Default Rating at 'A+' with a Stable Outlook, Short-term IDR at
'F1+', Support Rating at '1' and Support Rating Floor at 'A+'.

Fitch has also upgraded UBS's trust preferred securities to 'BBB-'
from 'BB' and removed them from Rating Watch Negative.  In
addition, the agency affirmed UBS Limited's 'A+' and 'F1+' IDRs
and Support Rating at '1'; the Outlook on its Long-term IDR is
Stable.

The upgrade of the Individual Rating reflects the extent to which
UBS has been able to recover from the considerable financial hits
it took when financial markets turned from benign to illiquid
during 2008.  Last year was one of consolidation and
restructuring, while 2010 is seeing a return to more normal
business.  Robust but not outstanding results in the first two
quarters of 2010 for the bank as a whole have come primarily from
its investment bank segment.  Wealth management is also showing
signs of a turnaround, although it continued to register net
client asset outflows from Western Europe in Q210.  Given the
reputational damage these two core businesses suffered during the
financial crisis, it will take more time for UBS to return fully
to the position of strength it enjoyed pre-crisis, and management
is targeting reaching these levels while keeping risks lower.

UBS has reduced risks across the board.  Reduced trading revenue
in the second half of Q2 resulted from lower client flows, while
UBS avoided taking large positions on its own book and so did not
record net trading losses.  Asset quality is strong now that many
legacy positions have been transferred, mainly to a fund owned by
the Swiss National Bank and a fund managed by Blackrock, and
others are winding down.  Lending is not a major business,
although UBS remains a committed traditional banker in
Switzerland.  Impairments are small.  Caught out by misjudging
liquidity before, this is now a priority.  Loans are amply covered
by deposits and wholesale funding is diversified.

Capitalization is good by most international comparisons, and
Fitch expects further core capital to be built up from retained
earnings.  The Swiss regulator's recently announced capital
requirements for the two large Swiss banks are more stringent than
Basel III's, but Fitch expects UBS to be able to stay on track
with the timetable put forward.

UBS' Long-term IDR is at its Support Rating Floor.  Along with its
Short-term and Support ratings, these are based on the substantial
support the bank received from the Swiss government in 2008, and
Fitch's view that such support would be forthcoming again if
necessary.  Ties between UBS and the Swiss state will remain
strong at least until global banking has stabilized and resolution
schemes are in place globally.  UBS's IDRs would be downgraded if
ties with the Swiss state loosen before the bank is able to regain
its financial profile compatible with its IDRs on a standalone
basis.  They would also be downgraded if Fitch changes its general
view of state support for banks, which may result from any further
and more practical developments that could mean that authorities
no longer support all senior creditors when banks fail.

In this context, a report by an expert commission appointed by the
Swiss Federal Council was presented to the Council on 30 September
2010.  The primary focus of the report is to ensure that the two
large, systemically important Swiss banks are made to maintain
strong enough balance sheets to withstand a global financial
crisis without needing state support.

The Individual Rating would benefit from successful implementation
of business plans, with no further franchise erosion and no signs
of increasing the much reduced risk profile without commensurate
compensation in earnings.

UBS is a leading global provider of wealth management, one of the
world's largest trading/investment banks and the largest domestic
bank in Switzerland.

The upgrade of UBS's trust preferred securities relates to the
upgrade of the Individual Rating in line with Fitch's criteria for
rating hybrid instruments'.  Under the criteria, hybrid
instruments are notched from the standalone IDR.  UBS Limited's
ratings reflect the irrevocable and unconditional guarantee by UBS
for all of UBS Limited's contractual counterparties.

Rating actions are:

UBS AG:

  -- Long-term IDR: affirmed at 'A+'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1+'
  -- Individual rating: upgraded to 'C' from 'D'
  -- Support rating: affirmed at '1'
  -- Support Rating Floor: affirmed at 'A+'
  -- Senior unsecured debt: affirmed at 'A+'
  -- Subordinated debt: affirmed at 'A'
  -- Commercial paper and Short-term debt: affirmed at 'F1+'

UBS Limited:

  -- Long-term IDR: affirmed at 'A+'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1+'
  -- Support rating: affirmed at '1'

* UBS Preferred Funding Trust 2 and V Preferred Securities:
  upgraded to 'BBB-' from 'BB'; removed from Rating Watch Negative

* UBS Preferred Funding Trust (Jersey) Limited Preferred
  Securities: upgraded to 'BBB-' from 'BB'; removed from Rating
  Watch Negative

* UBS Capital Securities (Jersey) Limited Preferred Securities:
  upgraded to 'BBB-' from 'BB'; removed from Rating Watch Negative


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


UKRTELECOM OAO: May Be Put Up for Auction on December 28
--------------------------------------------------------
Ukraine's government may auction OAO Ukrtelecom on Dec. 28, Daryna
Krasnolutska at Bloomberg News reports, citing Oleksandr
Ryabchenko, the head of the state property fund.

As reported by the Troubled Company Reporter-Europe on Feb. 25,
2010, Bloomberg News, citing Interfax, said that Ukrtelecom sought
to delay its payment on a US$500 million loan from Deutsche Bank
AG and Credit Suisse Group AG.  Bloomberg disclosed Interfax,
citing a letter from Ukrtelecom Chief Executive Officer Heorhiy
Dzekon to the head of Ukraine's communications agency, said the
company wanted to extend the deadline for 75% of the payment by at
least three months.  The news agency, as cited by Bloomberg, said
Ukrtelecom didn't have enough funds and wanted to avoid taking
more expensive short-term loans to pay the debt on time.

Ukrtelecom VAT (Ukrtelecom JSC) -- http://www.ukrtelecom.ua/-- is
a Ukraine-based national telecommunication operator.  It provides
telephone communication services throughout Ukraine, rendering all
kinds of telecommunication services: international, long-distance
and local telephony; data transmission including based on
Asynchronous Transfer Mode (ATM)/Frame Relay technology; Internet
network access including dial-up and broadband access based on
digital subscriber line (xDSL) technologies; granting dedicated
switched circuits for use; Integrated Services Digital Network
(ISDN); video-conference communication; satellite and wire
communication; technical maintenance of radio and television
broadcasting networks, telegraph and telex communication.  The
Company operates through 33 branches locates countrywide.


* Moody's Changes Outlook on Ukraine's 'B2' Bond Rating to Stable
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on Ukraine's B2
government bond ratings to stable from negative.

The main drivers for Moody's decision are:

1.  The Ukrainian government's improved external liquidity
    following the new 2-1/2-year US$15.1 billion IMF stand-by
    agreement and the successful US$2 billion Eurobond issue in
    September; and

2.  The narrowing of Ukraine's macroeconomic imbalances as
    reflected in a significant balance-of-payments adjustment and
    more recently, a resumption of economic growth.

Separately, Moody's has also changed to stable from negative the
outlooks on Ukraine's B1 foreign currency bond ceiling and its B3
foreign currency deposit ceiling.

                  Rationale for Outlook Change

"A stronger external position along with the economic recovery has
reduced Ukraine's susceptibility to financial stress," says
Dietmar Hornung, Vice President -- Senior Credit Officer in
Moody's Sovereign Risk Group and lead analyst for Ukraine.  "The
shift to a stable outlook on the government bond ratings reflects
Moody's view that the upside and downside risks at the current
rating level are evenly balanced."

Moody's notes that along with the fresh infusion of funds, the IMF
program's conditionality is one of the factors that has improved
the investment climate, thereby facilitating the successful
Eurobond issuance.

The IMF program targets budget deficits of 5.5% and 3.5% of GDP in
2010 and 2011, respectively.  The consolidation is to be achieved
through a reform of the tax system and the social security system,
combined with expenditure cuts and efficiency gains in the tax
administration.

The envisaged structural reforms in the SBA will encompass the
financial sector and the energy sector, and limit the deficit of
the state gas company to 1% and 0% of GDP in 2010 and 2011,
respectively.  "The government has agreed to raise retail gas
prices by 50% -- a move that reflects the Ukrainian authorities'
commitment to the IMF program," says Mr. Hornung.  This commitment
is essential given Ukraine's history of mixed success in staying
within an IMF program.

Apart from the stronger liquidity situation, Moody's decision to
change the country's outlook to stable also reflects the
rebalancing of the economy.  In 2009, the contraction of aggregate
demand led to a significant balance-of-payments adjustment.
Moreover, since Q1of 2010, Ukraine's real GDP has posted positive
figures, and recent labor market data reflect a stabilization in
overall employment levels.

"Nevertheless, the rebound in the country's economic activity is
starting from a very low base after a contraction of around 15% in
2009," cautions Mr. Hornung.  "Ukraine's recovery therefore
remains fragile." According to Moody's, the main recovery risks
lie in a weakening of exports -- from the country's vulnerable
steel industry particularly -- and a non-supportive banking system
given the significant non-performing loan levels and considerable
capital needs.

Moody's last rating action affecting Ukraine was implemented on 12
May 2009, when the rating agency downgraded Ukraine's government
bond ratings to B2 (from B1) and assigned a negative outlook.
Prior to that, Moody's last rating action on Ukraine was taken on
24 February 2009 when the rating agency placed the B1 government
bond ratings on review for possible downgrade.


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


EXOVA HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family
rating and B2 probability of default rating to Exova Holdings Ltd.
The rating outlook is stable.  At the same time, Moody's assigned
a provisional (P)B3 rating to the proposed GBP155 million senior
unsecured notes due in 2018, which will be issued by the
subsidiary Exova Limited.  The issuance proceeds will be applied
towards debt reductions and to support an extension of the
company's debt maturity profile.

                        Ratings Rationale

"The B2 rating reflects Exova's well established and diversified
business position as one of the market leaders of laboratory-based
testing services with a relatively high degree of performance
resilience through the cycle evidenced in a track record of solid
and stable profitability and cash generation levels," says
Christian Hendker, Moody's Lead Analyst for Exova.  "The rating is
constrained by Exova's low absolute scale with revenues of around
GBP221 million as well as its leverage, reflected in a pro-forma
debt to EBITDA of above 6x per end of 2009.  The stable rating
outlook is based on the expectation of continued positive free
cash flow generation supporting net debt reductions and credit
metrics improvements going forward."

Moody's notes that the (P)B3 rating (LGD 5, 75%) assigned to the
senior unsecured notes is one notch below the B2 CFR and reflects
the instrument's contractual subordination to approximately GBP85
million secured bank debt.  The instrument has been issued at the
level of the holding company Exova Limited, but benefits from
subordinated guarantees provided by major operating companies.

The B2 CFR reflects (i) Exova's strong position as a market-
leading provider of laboratory-based testing services covering a
number of geographic markets, industries and testing services;
(ii) its strong customer diversification with a high degree of
customer retention; (iii) its track record of relatively stable
revenue and solid profitability levels with EBITDA margins in the
20% range, supported by the recurring and non-discretionary
character of most testing services, as well as a high degree of
cost structure flexibility; (iv) Moody's expectation of further
performance improvements driven by favorable industry conditions
with additional outsourcing potential, increasing regulation,
shortening of product life cycles supporting the high demand for
testing services; and (vi) the extended debt maturity profile if
bond issuance is implemented as planned.

The B2 CFR also considers (i) the relatively limited scale as
evidenced by revenues of around GBP211 million in 2009; (ii) the
limited performance track record as a stand-alone company; (iii)
the short contract lengths in some segments, which add constant
renewal pressure at comparable margin levels and could trigger
revenue and margin volatility; (iv) the challenge to de-leverage
its capital structure considering a pro-forma interest coverage of
around 1.2x expected for 2010 and debt to EBITDA of around 6.0x;
and (v) the challenge to remain in compliance with financial
covenants under bank debt.

Exova has a sufficient liquidity cushion with a cash balance of
GBP17 million as of end June 2010 with availability of GBP33.1
under various credit facilities.

The stable rating outlook is based on Moody's expectation of
further gradual performance and credit metrics improvements, with
an expectation of positive free cash flow generation applied
towards net debt reductions.  The rating does not incorporate
headroom for shareholder payouts or larger scale acquisitions.

Positive rating pressure requires a longer term track record of
operating performance and credit metrics improvements underpinned
by a strengthening business profile with reference to scale.
Positive rating pressure would be prompted by a reduction of debt
to EBITDA towards 5.0x, EBITDA-Capex to Interest towards 2.0x and
continued positive free cash flow generation.

Negative rating pressure would result from Exova's inability to
further improve profitability and credit metrics over the next
years.  Triggers for negative rating pressure would be negative
free cash flows, an eroding liquidity profile including a
tightening headroom under financial covenants, inability to
improve debt to EBITDA towards 5.5x or EBITDA-Capex to Interest
above 1.5x.

Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody'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 notes.  A definitive rating may differ
from a provisional rating.

Assignments:

Issuer: Exova Holdings Limited

  -- Probability of Default Rating, Assigned B2
  -- Corporate Family Rating, Assigned B2
  -- Outlook: Stable

Issuer: Exova Limited

  -- Senior Unsecured Regular Bond/Debenture, Assigned (P)B3,
     LGD5, 75%

  -- Outlook: Stable

Exova, headquartered in Newbridge (UK) is a leading provider of
value-added laboratory based testing services, to ensure
compliance of products and processes in line with safety and
quality standards required by customers, accreditation and
regulatory authorities.  In 2009, the company generated revenues
of around GBP221 million.

                     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, confidential and proprietary
Moody's Analytics' 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.


HIGHFIELD JUNIORS: Near Collapse After Treasurer Stole Funds
------------------------------------------------------------
Sam McGregor, writing for Oxford Mail, reports that Highfield
Juniors FC is back on even footing after it was left almost
bankrupt when its treasurer plundered its bank account.

The report relates that for months club managers put their hands
in their own pockets to pay for equipment and kit to keep the
teams going.  Then chairman Tony Cowles decided to send a letter
to local businesses appealing for sponsorship.

The report says Natalie Ross, 40, was convicted by a jury at
Oxford Crown Court in February 2010 of 17 charges of theft,
obtained by deception and false accounting.  The charges related
to her time as treasurer of Highfield Juniors FC and as a
bookkeeper at Bicester Garrison between 2004 and 2007.  She stole
a total of GBP63,451.17, but was only ordered to pay a nominal fee
of GBP10 within 28 days under the Proceeds of Crime Act as the
court agreed she had no assets.  She was jailed for 18 months.

Highfield Juniors FC is a youth football club.


INVISTA REAL ESTATE: To Delist & Sell Off Assets
-------------------------------------------------
Daniel Thomas at The Financial Times reports that Invista Real
Estate Investment Management will have to delist and sell off
assets after Lloyds Banking Group, its majority shareholder,
withdrew almost half of the company's GBP5.4 billion (US$8.5
billion) of funds under management.

Invista, which was spun out of the former fund management arm of
HBOS as a listed company in 2006, has been in negotiations with
Lloyds to extend the GBP2.4 billion of former HBOS property
management contracts that expired last month, the FT notes.

The FT relates Invista, headed by Duncan Owen, chief executive,
was told on Tuesday that the HBOS contracts would be terminated
and the management would be assumed by Scottish Widows Investment
Partnership, the investment management group also owned by Lloyds,
although it will have a year to effect a handover of the funds.

According to the FT, Invista said that its board had concluded
that the liquidation of Invista's remaining assets, including the
sale of its asset management business, would be in the best
interests of clients and shareholders.

The proceeds of the sale of about GBP140 million of net assets on
its balance sheet will be returned to Invista shareholders, the FT
says.

Lloyds is Invista's majority shareholder with about 55%, the FT
discloses.

Invista Real Estate Investment Management is the largest UK listed
real estate fund management group.  The Group manages both
commercial and residential property across the UK, Continental
Europe and Asia-Pacific.


JOSEPH DANENZA: U.S. Court Recognizes Chapter 15 Proceeding
-----------------------------------------------------------
The Hon. Robert A. Mark of the U.S. Bankruptcy Court for the
Southern District of Florida recognized Joseph Jerome Danenza's
Chapter 15 case as a foreign main proceeding.

The U.K. Proceeding, including but not limited to the U.K.
Bankruptcy order will be given full force and effect and be
binding on and enforceable in the United States against all
persons and entities.

Stephen John Hunt, as foreign representative signed a petition of
Chapter 15 protection for Joseph Jerome Danenza on August 12, 2010
(Bankr. S.D. Fla. Case No. 10-33736).  Gregory S. Grossman, Esq.,
serves as counsel to the foreign representative.  The Debtor is
estimated to have assets and debts at US$10 million to US$50
million in the Chapter 15 petition.


LEISURE AND GAMING: Hopes to Avoid Administration
-------------------------------------------------
Leisure and Gaming said that following a demand from its bankers
for a repayment, it was working to try and find a solution that
would avoid the company going into administration, Stock Market
Wire reports.

According to the report, the company had been hoping to conclude a
share purchase agreement with Grupo Pefaco but this has not
happened and the terms of exclusivity with Pefaco have expired.

The report relates that talks are continuing with Pefaco but the
directors are also in contact with other parties who have
expressed an interest in acquiring the Betshop business.

Leisure and Gaming plc is a holding company with major assents in
the global interactive betting and gaming industry.  Its interests
span from software development to marketing.

Leisure and Gaming plc was incorporated in England and Wales in
August 2004.  Its registered holders are BNY Norwich Union
Nominees Ltd, Chase GA Group Nominees Ltd, Chase Nominees Ltd,
CUIM Nominee Ltd, and Vidacos Nominees Ltd.


LIVERPOOL FOOTBALL: Holding Company In Default; May Face Collapse
-----------------------------------------------------------------
Liverpool Football Club's holding company is in default over
GBP280 million (US$446 million) owed to Royal Bank of Scotland
Group Plc and Wells Fargo & Co., which may put the soccer club
into bankruptcy protection, Tariq Panja at Bloomberg News reports,
citing three people familiar with the situation.

According to Bloomberg, the people, who declined to be identified
because of pending lawsuits, said that while U.K. newspapers
including the Daily Telegraph have reported that co-owners Tom
Hicks and George Gillett's debt matures on Oct. 15, the loan is
already in default.  The U.S. pair is trying to block a sale to
New England Sports Ventures LLC because they say the price is too
low, Bloomberg notes.

Bloomberg relates the people on Sunday said although the banks
prefer not to put the team into administration, a form of
bankruptcy, they may if the NESV deal is challenged in court or
indefinitely delayed.

RBS, as cited by Bloomberg, on Sunday said that it got an interim
injunction on Oct. 8 to prevent the owners from removing board
members as a way to block the sale.

                        About Liverpool Football

Liverpool Football Club and Athletic Grounds owns and operates one
of the more popular and most successful franchises in the UK
Premier League.  Known as The Reds, Liverpool has won 18 first
division titles and seven FA Cups since it was founded by John
Houlding in 1892.  In addition to the football club, the company
owns and operates Anfield Stadium, Liverpool's home ground.  The
company generates revenue primarily through sponsorships,
broadcasting fees, and ticket sales.  The company was acquired by
US businessmen George Gillett and Tom Hicks in 2007.


LIVERPOOL FOOTBALL CLUB: Could Still Face Administration
--------------------------------------------------------
Peter Lennox at goal.com reports that Liverpool Football Club and
Athletic Grounds Chairman Martin Broughton said there is a genuine
chance that the club could still go into administration.

According to the report, the ownership and immediate future of the
Anfield side will be decided in the High Court, when Broughton
takes on Tom Hicks and George Gillett over the proposed sale of
the club to New England Sports Ventures.  The report relates that
Messrs. Hicks and Gillett have fiercely opposed the sale of the
club to NESV and Broughton says if they win their case, there is
every chance Liverpool could go into administration.

The report notes that the Royal Bank of Scotland, the club's main
creditors, is due to call in their debt of GBP280 million on
October 15.  Should this happen, the report says, the club will go
into administration and incur a nine-point penalty from the
Premier League.

Mr. Broughton told the Daily Telegraph: "It [administration] could
happen, yes.  This is all part of why it is important that we made
the decision on Tuesday to accept one or the other of the two very
acceptable bids.  Heading for administration was a very likely
outcome if we didn't.  Even now with the court case looming,
administration cannot be ruled out.  It is not inevitable, and I
am not going to start giving percentages of how much it is
possible.  That is why we are going to court to clarify our
position on the sale of the club, and we have to win in court, and
we will win in court."

The report notes Mr. Broughton said that the effects of going into
administration would be devastating to the club.  The report
relates Mr. Broughton has also confirmed there is a clause in Roy
Hodgson's contract allowing any new owner of the club to replace
him and not have to pay up all of the remaining years on his deal.

Mr. Broughton admitted he didn't know the specifics of Hodgson's
contract, but he had a fair idea of the details of the exit
clause, the report adds.

                     About Liverpool Football

Liverpool Football Club and Athletic Grounds owns and operates one
of the more popular and most successful franchises in the UK
Premier League.  Known as The Reds, Liverpool has won 18 first
division titles and seven FA Cups since it was founded by John
Houlding in 1892.  In addition to the football club, the company
owns and operates Anfield Stadium, Liverpool's home ground.  The
company generates revenue primarily through sponsorships,
broadcasting fees, and ticket sales.  The company was acquired by
US businessmen George Gillett and Tom Hicks in 2007.


LIVERPOOL FOOTBALL CLUB: Peter Lim Won't Rule Out Buying Firm
-------------------------------------------------------------
James Cone at Bloomberg News reports that Singapore billionaire
Peter Lim said he would not rule out buying Liverpool Football
Club and Athletic Grounds even if it is placed into
administration.

According to the report, Mr. Lim has offered GBP320 million
(US$507 million) to buy the club, trumping an accepted offer from
the Boston Red Sox ownership group.  "He feels strongly the board
did not give him a fair opportunity to put his best offer
forward," David Shriver, a spokesman for Mr. Lim, said in an
e-mail obtained by the news agency.

Liverpool Football Club and Athletic Grounds owns and operates one
of the more popular and most successful franchises in the UK
Premier League.  Known as The Reds, Liverpool has won 18 first
division titles and seven FA Cups since it was founded by John
Houlding in 1892.  In addition to the football club, the company
owns and operates Anfield Stadium, Liverpool's home ground.  The
company generates revenue primarily through sponsorships,
broadcasting fees, and ticket sales.  The company was acquired by
US businessmen George Gillett and Tom Hicks in 2007.


NEWINGTON NURSERIES: Goes Into Compulsory Liquidation
-----------------------------------------------------
Oxford Mail reports that Newington Nurseries of Stadhampton has
gone into compulsory liquidation.

Oxford Mail relates Ade Daramy of the Insolvency Service said,
"The company became insolvent as the result of a petition by a
creditor claiming GBP10,000 on the grounds that the company's work
had been defective."

"This point was disputed by the company's director."

"On the current information, it is not likely that there will be
any distribution to creditors," Ms. Daramy told Oxford Mail.


PRONUPTIA CORNWALL: To Be Put in Liquidation by End of October
--------------------------------------------------------------
BBC News reports that wedding outfitters Pronuptia Cornwall has
called in insolvency experts and is warning customers they could
lose cash deposits.

The shop is not taking future orders but is selling off stock, the
reports.

According to BBC News, the company said it was expected to go into
liquidation at the end of October and five staff were losing their
jobs.

Pronuptia Cornwall, in Truro, has hired and sold formal outfits
for 25 years.


STERLINGMAX I: S&P Cuts Ratings on Two Classes of Notes to 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered and placed on
CreditWatch negative its credit ratings on STERLINGMAX I MBS
Ltd.'s class B, C, and D notes and affirmed its rating on the
class A-1 notes.  At the same time, S&P placed the class A-2 notes
on CreditWatch negative.

These rating actions reflect S&P's view of the risk that interest
shortfalls may occur on the class B notes as the transaction
approaches the end of its reinvestment period.  According to S&P's
understanding of the transaction documents, the transaction's
reinvestment period ends one day before the payment date of Nov.
20, 2010.  From the latest available note valuation report of May
2010, S&P notes that the transaction's available interest proceeds
were sufficient to pay interest on the class A-1, A-2, and B notes
on the May 2010 payment date, albeit with a very small cushion of
about ?4,600 of interest proceeds remaining after payment of the
class B interest.  The interest due on the class C and D notes on
the May 2010 payment date was paid using principal proceeds.

It is S&P's interpretation of the transaction documents that the
ability to use principal proceeds to pay interest on the class A-
2, B, C, and D notes, before repaying the respective higher-
ranking class of notes, expires once the transaction ends its
reinvestment period.  Following the end of the reinvestment
period, principal proceeds can only be used to cover potential
interest shortfalls on any of the class A-2, B, C, and D notes
after the respective higher-ranking class of notes has been fully
repaid.

In addition, S&P notes that the transaction is failing its
weighted-average spread test.

S&P also note that since its last rating action in March 2010,
according to its analysis the balance of assets that S&P considers
as defaulted has increased to ?2.35 million from zero, while the
balance of assets rated 'CCC' and 'CCC-' has increased to about
?5.87 million from ?2.7 million.

As a result of these developments, S&P has lowered and placed on
CreditWatch negative the ratings on the class B, C, and D notes
and placed the class A-2 notes on CreditWatch negative.  S&P is
awaiting information from the collateral manager regarding the
projected interest income and will continue to monitor the
development of available interest proceeds.

From the latest available note valuation report of May 2010, S&P
note that class A-1 has repaid about 25% of its original principal
amount as a result of the failing overcollateralization ratio test
(calculated on all classes of rated notes).  The repayment of the
class A-1 notes using available principal proceeds occurred only
after payment of interest to all classes of notes.  The
amortization of class A-1 has led to an increase in credit
enhancement for all classes of notes.

According to the September 2010 trustee report, principal cash
currently stands at ?14.97 million.  It is S&P's understanding of
the transaction documents that after the reinvestment period, all
available principal proceeds after payment of certain senior fees
will be used to repay class A-1 first.  S&P has affirmed its
rating on the class A-1 notes as S&P believes there is sufficient
credit enhancement available to these notes.

STERLINGMAX I MBS is a cash flow collateralized debt obligation
comprising mostly U.K.  residential and commercial mortgage-backed
securities, and commercial asset-backed securities.

                           Ratings List

                      STERLINGMAX I MBS Ltd.
     ?150 Million Secured Floating-Rate And Residual Notes[1]

        Ratings Lowered and Placed on CreditWatch Negative

                                    Rating
                                    ------
         Class           To                      From
         -----           --                      ----
         B               BB (sf)/Watch Neg       BBB (sf)
         C               BB- (sf)/Watch Neg      BBB- (sf)
         D               BB- (sf)/Watch Neg      BBB- (sf)

              Rating Placed on CreditWatch Negative

                                    Rating
                                    ------
         Class           To                      From
         -----           --                      ----
         A-2             AAA (sf)/Watch Neg      AAA (sf)

                         Rating Affirmed

                      Class           Rating
                      -----           ------
                      A-1             AAA (sf)

[1] S&P's ratings on the class A-1, A-2, and B notes address the
    timely payment of interest and principal, while the rating on
    the class C and D notes addresses the ultimate repayment of
    interest and principal.


TARGETFOLLOW ESTATE: High Court Gives 2 Weeks to Secure Investment
------------------------------------------------------------------
Mail Online reports that London's High Court granted Targetfollow
two weeks to secure investment, despite efforts by Lloyds Banking
Group Plc to force it into administration over GBP700million of
debt.  The report relates that the company cannot meet repayments
on the loan or repay it in full because the value of its estate
tumbled in the financial crisis.  But the group claims it has come
up with a number of viable ways to restructure the debt -- only to
see them rejected by Lloyds, the report notes.

According to Mail Online, Lloyds Banking Group wants to seize and
sell the properties to recoup some of its money.  The report
relates the bank has raised fears within the commercial property
industry of a fire-sale of assets and double-dip in prices as
banks seeking to unwind toxic loans handed out during the boom
years from undermining the recovery.

Mail Online notes that Lloyds' representatives told the High Court
in London that the bank wanted to offload properties held by
Targetfollow by the New Year.  The report relates that the bank's
counsel Barry Isaacs said the assets needed to be sold before the
end of the year to ensure "an optimal value while there is optimal
interest."

"Every week that passes is detrimental to the value of the
assets," Mail Online quoted Mr. Isaacs as saying.  Lloyds values
Targetfollow's estate at just GBP450million, while the company
claims it is worth nearer GBP680million, the report notes.

Mail Online notes Jeffery Gruder QC, acting for Targetfollow owner
and founder Ardeshir Naghshineh, said the company needed more time
to bring talks with a potential new investor "to fruition".  In
two weeks the court would be "able to see more clearly how that
deal is forming -- whether it is a runner making good progress or
whether it isn't," he added.

The judge adjourned the case until October 25 at the earliest.

Targetfollow is a property developer based in the United Kingdom.


TOTAL FITNESS: Boss Blames High Rents for Unit's Administration
---------------------------------------------------------------
Total Fitness' boss has revealed how the UK arm of the gym chain
was forced into administration by crippling rents, but says he is
confident it will return to growth after a GBP5 million investment
program, Manchester Evening News reports.  The report relates that
Total Fitness in the UK was acquired in a multi-million pound deal
by management and Barclays Ventures via a pre-pack administration
from Ernst & Young.

According to Manchester Evening News, its Irish arm, which was
trading solvently and was not impacted by the administration, was
bought the same day from private equity owners Legal & General
Ventures.  The report relates that the group had been marketed as
a whole attracting a number of bids.

Manchester Evening News notes that the UK business went into
administration after being saddled with sky-high rents, which were
signed by the group at the height of the property boom and were
continuing to rise, wiping out profitability.

The group, Manchester Evening News relates, is planning investment
in its 24 clubs, which employ 746 staff.  The report relates
Executive Chairman Graham Hallworth said that the group would look
to expand only after its current investment program was in hand.

The report notes that last month Robin Johnson and John Peers, the
chief executive and managing director of the company, left the
group.

Turnover for the year up to March, 2009 was GBP59.4 million, up
from GBP58.7 million, while pre-tax operating profits were GBP7.3
million, down from GBP9.9 million, Manchester Evening News adds.

Headquartered in Wilmslow, Total Fitness has 182,000 members.


VOICESERVE INC: Earns US$125,500 in June 30 Quarter
---------------------------------------------------
VoiceServe, Inc., filed its quarterly report on Form 10-Q,
reporting net income of US$125,509 on US$1.07 million of revenue
for the three months ended June 30, 2010, compared with a
net loss of US$444,440 on US$661,904 of revenue for the same
period ended June 30, 2009.  Net earnings for the fiscal 2011
first quarter includes income from revaluation of liability for
common stock purchase warrants of US$121,854.

The Company's balance sheet at June 30, 2010, 2010, showed
US$3.06 million in total assets, US$1.01 million in total
liabilities, and stockholders' equity of US$2.05 million.

As reported in the Troubled Company Reporter on July 5, 2010,
Michael T. Studer CPA P.C., in Freeport, New York, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's results for the fiscal year
ended March 31, 2010.  The independent auditor noted that as of
March 31, 2010, the Company had negative working capital of
US$475,863.  Further, since inception, the Company has incurred
losses of roughly US$2.99 million.

A full-text copy of the Form 10-Q is available for free at:

                  http://researcharchives.com/t/s?6c56

                      About VoiceServe Inc.

Headquartered in Edgware, Middlesex, in the United Kingdom,
VoiceServe, Inc., was incorporated in the State of Delaware on
December 9, 2005, under the name 4306, Inc.  The Company develops,
manufactures, licenses, and supports a wide range of VoIP software
products and services for many different types of devices,
including a wide range of cellular telephones.


* UK: Retail Insolvency Rates Fall to Pre-2007 Levels, PwC Says
---------------------------------------------------------------
Steve Dinneen at City A.M. reports that retail insolvencies fell
to pre-recession levels this quarter, according to research from
PricewaterhouseCoopers (PwC).

City A.M. reports that just 360 firms went bust in the third
quarter, a drop of 11 per cent from the second and a massive 26
per cent reduction on last year.

According to City A.M., PwC believes the improvement will be
continued as most of the weaker firms on the high street have
already gone bankrupt.

City A.M. notes that the retail figures echo a wider trend, with a
total of 3,313 companies becoming insolvent in the third quarter
of 2010 -- a fall of 18 per cent on the previous quarter and 29
per cent fewer than the year before.


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


* EUROPE: US$316BB of Junk-Rated Corporate Debt Needs Refinancing
-----------------------------------------------------------------
John Glover and Karen Eeuwens at Bloomberg News report that
Moody's Investors Service said the US$316 billion of junk-rated
corporate debt that needs refinancing in Europe through 2014 is a
"wall of maturities" that dwarfs the historic capacity of the
market.

Speculative-grade issuers in Europe, the Middle East and Africa
have US$502 billion of bonds and loans outstanding, Moody's said
in a report on Monday, citing 224 companies it rates, according to
Bloomberg.  Bloomberg says about 63% of the debt matures between
2011 and 2014, with a peak of US$89 billion in 2013, according to
the report.  About two thirds is in the form of bank loans with
the rest being bonds, Bloomberg notes.

High-yield, or junk, bonds are rated below Baa3 by Moody's and
BBB- by Standard & Poor's.

Issuers in the Ba ratings category -- the strongest of the three
high-yield groupings -- account for 66% of the debt coming due
next year, Moody's, as cited by Bloomberg, said.  Bloomberg
relates Moody's said so-called fallen angels, companies that have
lost investment-grade ratings, account for 69% of the junk-rated
debt maturing in 2011 and 2012, while the 25 largest issuers
account for half of all the debt outstanding.

LBOs account for about a third of rated speculative-grade issuers
and a quarter of the junk debt coming due, Bloomberg says, citing
the report.  The borrowers tend to be rated lower than other junk-
graded issuers, and Moody's forecasts that "a number of stressed
LBOs will default" if rates rise, Bloomberg states.


* EUROPE: Junk Yields Tumble to Lowest Since Before Crisis
----------------------------------------------------------
Caroline Hyde at Bloomberg News reports that lenders to
speculative-grade companies in Europe are charging the lowest
interest rates since before credit markets seized up in a sign
they don't expect the region's fiscal crisis to infect corporate
debt.

Investors demand an average yield of 7.62% to hold junk-rated
European debt, the lowest since July 2007, Bloomberg says, citing
Bank of America Merrill Lynch index data.

Bloomberg notes that while nations from Greece to Ireland struggle
with budget deficits above the European Union limit, companies are
taking advantage of a global rally in corporate debt to refinance
and extend maturities.

Bloomberg relates Moody's Investors Service said in an Oct. 7
report that the default rate in the region fell to 3.5% at the end
of September from 5.6% three months earlier, and is forecast to
drop to 2.2% by year-end.

According to Bloomberg, Bank of America Merrill Lynch data show
European corporate junk bonds have returned 16% this year,
including reinvested interest, helping sales almost double and
borrowers avoid default.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Oct. 15, 2010
  AMERICAN BANKRUPTCY INSTITUTE
     NCBJ/ABI Educational Program
        Hilton New Orleans Riverside, New Orleans, La.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 28, 2010
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Level Professional Development Program
        Weil, Gotshal & Manges LLP, New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 29, 2010 (tentative)
  AMERICAN BANKRUPTCY INSTITUTE
     International Insolvency Symposium
        The Savoy, London, England
           Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. __, 2010
  AMERICAN BANKRUPTCY INSTITUTE
     Delaware Views from the Bench and Bankruptcy Bar
        Hotel du Pont, Wilmington, Del.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. 11, 2010
  AMERICAN BANKRUPTCY INSTITUTE
     Detroit Consumer Bankruptcy Conference
        Hyatt Regency Dearborn, Dearborn, Mich.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. 29, 2010
  RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP, INC.
     17th Annual Distressed Investing Conference
        The Helmsley Park Lane Hotel, New York City
           Contact: 1-903-595-3800;
                    http://www.renaissanceamerican.com/

Dec. 9-11, 2010
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        Camelback Inn, a JW Marriott Resort & Spa,
        Scottsdale, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Dec. 2-4, 2010
  AMERICAN BANKRUPTCY INSTITUTE
     22nd Annual Winter Leadership Conference
        Camelback Inn, Scottsdale, Arizona
           Contact: 1-703-739-0800; http://www.abiworld.org/

January 26-28, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Distressed Investing Conference
        Aria Las Vegas
           Contact: http://www.turnaround.org/

Jan. 27-28, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Rocky Mountain Bankruptcy Conference
        Westin Tabor Center, Denver, Colo.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 3-5, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Caribbean Insolvency Symposium
        Westin Casuarina Resort & Spa, Grand Cayman Island
           Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 24-25, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Valcon
        Four Seasons Las Vegas, Las Vegas, Nev.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 4, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Bankruptcy Battleground West
        Hyatt Regency Century Plaza, Los Angeles, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 7-9, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Conrad Duberstein Moot Court Competition
        Duberstein U.S. Courthouse, New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 10, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Nuts and Bolts - Florida
        Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 10-12, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     SUCL/ Alexander L. Paskay Seminar on
     Bankruptcy Law and Practice
        Marriott Tampa Waterside, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 17-19, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Byrne Judicial Clerkship Institute
        Pepperdine University School of Law, Malibu, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 27-29, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott, Chicago, IL
           Contact: http://www.turnaround.org/

May 5, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Nuts and Bolts - New York City
        Association of the Bar of the City of New York,
        New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

May 6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     New York City Bankruptcy Conference
        Hilton New York, New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

June 6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Canadian-American Cross-Border Insolvency Symposium
        Fairmont Royal York, Toronto, Ont.
           Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Central States Bankruptcy Workshop
        Grand Traverse Resort and Spa, Traverse City, Mich.
              Contact: http://www.abiworld.org/

July 21-24, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Northeast Bankruptcy Conference
        Hyatt Regency Newport, Newport, R.I.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 27-30, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Sanctuary at Kiawah Island, Kiawah Island, S.C.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 4-6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hotel Hershey, Hershey, Pa.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 14, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. __, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     Hilton San Diego Bayfront, San Diego, CA
        Contact: http://www.turnaround.org/

Dec. 1-3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 19-22, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.

                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Valerie U. Pascual, Marites O. Claro, Rousel Elaine
T. Fernandez, Joy A. Agravante, Frauline S. Abangan and Peter A.
Chapman, Editors.

Copyright 2010.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


                  * * * End of Transmission * * *