TCREUR_Public/101027.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, October 27, 2010, Vol. 11, No. 212

                            Headlines



B U L G A R I A

BULGARIAN AMERICAN: S&P Cuts Counterparty Credit Ratings to 'B'


D E N M A R K

FIONIA BANK: Wins EU Commission Nod for Danish State Aid


G E R M A N Y

HONSEL AG: Files For Insolvency in Germany
QIMONDA AG: Administrators Reach Settlement With U.S. Subsidiaries


G R E E C E

* GREECE: May Default Within Three Years, El-Erian Says


I R E L A N D

ANGLO IRISH: Debt Exchange May Trigger Default Swaps
SHANDON CLINICAL: Creditors to Appoint Liquidator on November 3
* IRELAND: Company Liquidations Left Unpaid Debt of EUR1.1 Billion


I T A L Y

BANCO POPOLARE: Board Approves Up to EUR2 Billion Share Sale


K A Z A K H S T A N

KAZKOMMERTSBANK: May Breach Financial Covenants on EBRD Loan
ZHAIKMUNAI LP: S&P Raises Corporate Credit Rating to 'B'


N E T H E R L A N D S

HARBOURMASTER PRO-RATA: Interest Rate Changes Won't Affect Ratings
RIJN FINANCE: Fitch Cuts Ratings on Two Classes of Notes to 'Dsf'
* NETHERLANDS: Draft Bill to Allow Central Bank to Sell Assets


R U S S I A

BANK URALSKY: Moody's Affirms 'E+' Bank Financial Strength Rating
LOCKO-BANK: Moody's Affirms 'E+' Bank Financial Strength Rating
NOMOS CAPITAL: Moody's Assigns 'Ba3' Rating to 2013 Loan Notes
RVK-FINANCE LLC: Fitch Assigns 'BB-' Senior Unsecured Rating
SYNERGY OA: Fitch Affirms Long-Term Issuer Default Rating at 'B'


S W I T Z E R L A N D

UBS AG: Moody's Downgrades Ratings on Medium Notes to 'Ba3'


T U R K E Y

PETROL OFISI: S&P Puts 'B+' Rating on CreditWatch Positive


U N I T E D   K I N G D O M

CORSAIR NO. 3: Fitch Lowers Rating on Series 1 Notes to 'CCsf'
EUROPEAN PROPERTY: S&P Withdraws 'BB-' Rating on Class E Notes
GLENTORAN FOOTBALL CLUB: Maybe Be Forced Into Administration
LLOYDS BANKING: Shareholders Hold Protest Meeting on HBOS Takeover
MANSARD MORTGAGES: Fitch Affirms 'CCsf' Rating on Class B2a Notes

MAYPOLE GROUP: In Talks Regarding Appointment of Administrators
PORTSMOUTH FOOTBALL CLUB: Owner Maybe In charge for Shorter Period
VAMOSA LIMITED: T-Mobile Acquires IP and Trademarks From Firm


X X X X X X X X

* Banks Must Reduce Dependence on Short-Term Debt, Gov. King Says




                            *********


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


BULGARIAN AMERICAN: S&P Cuts Counterparty Credit Ratings to 'B'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term counterparty credit ratings on Bulgaria-based Bulgarian
American Credit Bank to 'B' from 'B+'.  The short-term rating is
unchanged at 'B' and the outlook is negative.

The rating action reflects S&P's view that the likelihood of BACB
receiving extraordinary support in case of need from its parent
bank, Allied Irish Bank PLC (BBB+/Negative/A-2), has reduced.

AIB has recently stated that its 49.99% investment in BACB is
included among the investments to be disposed of as part of AIB's
capital-raising plan.  In addition, in S&P's view, it seems
probable that AIB will likely become majority-owned by the Irish
state.  As a result, S&P no longer factors a one-notch uplift
above BACB's stand-alone credit profile for parental support from
AIB, in accordance with its group rating methodology.  S&P views
BACB as not strategically important to AIB.

S&P continue to factor in AIB's managerial, risk management,
operational, and existing financial support in BACB's SACP.
During 2010, AIB has provided a ?75 million revolving credit line
to BACB, of which BACB has used ?25 million to date.

The ratings on BACB reflect S&P's view of its concentrated
exposure to the real estate and construction sector in the
Republic of Bulgaria (BBB/Stable/A-3), sharply deteriorating asset
quality, higher-than-average liquidity risk, and its small niche
franchise in the still-challenging domestic operating environment.
The ratings are supported by BACB's strong capitalization and
strong management team, which has a good knowledge of its niche
business of secured lending to small and midsize enterprises.

"The negative outlook reflects S&P's view of the impact of the
difficult operating environment and weakening economy in Bulgaria
on BACB's creditworthiness," said Standard & Poor's credit analyst
Annette Ess.  "In particular, S&P is monitoring its asset quality
and profitability, given its concentrated exposure to the domestic
real estate and construction sectors."

Downward pressure on the ratings would result from higher-than-
expected deterioration in asset quality and would occur if
increased provisions result in a financial loss, which in turn
would erode capitalization.

S&P's ratings expectations incorporate the likelihood that
nonperforming loans will remain elevated at current levels in
2010-2011 and that BACB will record a small loss in 2010.
Evidence of weakened liquidity would also depress the ratings on
BACB.

S&P could revise its outlook on BACB to stable if the market
environment in Bulgaria were to improve and pressure on BACB's
financial profile--in particular, its asset quality--were to ease.
In S&P's opinion, an upgrade is unlikely in the short-term, unless
BACB is acquired by a strong strategic investor that is committed
to BACB's development and willing to provide extraordinary
financial support.


=============
D E N M A R K
=============


FIONIA BANK: Wins EU Commission Nod for Danish State Aid
--------------------------------------------------------
IEWY News reports that the European Commission has approved under
EU state aid rules a package of Danish measures to liquidate
Fionia Bank, a small bank that became insolvent in the wake of the
financial crisis. The bank was initially rescued by the Danish
government, a rescue that was temporarily approved by the
Commission in May 2009, the report relates.  But as the rescue
failed, Denmark sold a significant portion of Fionia to Nordea
after an open tender, IEWY News notes.  The bank's high-risk
assets have been put in a winding-up facility. The Commission
found the liquidation to be in line with its Communication on the
restructuring of the financial sector during the crisis as the
measures are both appropriate and proportionate and address a
serious disturbance of the market while keeping the potential
distortions of competition to the minimum, IEWY News reports.

According to IEWY News, Commission Vice-President in charge of
competition policy Joaquin Almunia said: "The Danish authorities
have worked out a comprehensive concept for an orderly winding-up
that ensures shareholders bear their share of the burden, limits
the cost for taxpayers and enabled competitors to bid for the
viable parts of the businesses thus limiting the distortions of
competition."

IEWY News notes Fionia Bank was a regional, full-service bank
based on the island of Funen and neighbouring islands in central
Denmark. At the end of 2008 it had 34 branches and around 550
employees. It had approximately EUR4.4 billion of assets and was
the ninth largest bank in Denmark. At the beginning of 2009,
Fionia Bank was ordered by the Danish Financial Supervisory
Authority to increase its capital ratios. As the bank also had
liquidity problems, it was put under State control and received a
credit facility of EUR684 million and a capital injection of
EUR134 million. The state intervention received temporary
clearance by the Commission in May 2009 pending the submission of
a restructuring or liquidation plan. As the problems of the bank
worsened in line with negative market conditions primarily in the
real estate sector, Denmark took the view that a controlled
liquidation was the best option.

IEWY News relates in August 2009 Denmark sold the main part of
Fionia's business operations to Nordea, after an open tender for
which the credit exposures were divided up into three categories
depending on the risk profile. Three bids were presented, but
Nordea's was the highest. The agreement involves the network of
branches, including their staff. Fionia's high risk assets have
been carved out and transferred to a newly established subsidiary
of the Financial Stability Corporation (FSC), the State's bail-out
fund, which is serving as a winding-up vehicle. This includes
approximately 2,200 customers with a loan portfolio of EUR1.4
billion that may be at least partly impaired. This subsidiary,
called Nova Bank Fyn, whilst having a banking license will not
take on any new business but rather seek to transfer customers and
terminate business as quickly as possible in order to limit the
costs for the State to a strict minimum.

IEWY News relates in order to meet regulatory requirements and for
the purpose of liquidation, the FSC has capitalised Nova Bank Fyn,
which has also received the credit facility, since increased, in
order to fill the funding deficit left by the transfer of certain
parts of the bank to Nordea.

The report notes the Commission's approval of the State aid
involved in the liquidation process also covers the requirement
that the pricing policy of Nova Bank Fyn will be designed to
encourage customers to find more attractive alternatives.
Furthermore, Nova Bank Fyn will not pursue any new activities but
merely phase out the ongoing operations. In this way the
Commission considers that the distortions of competition are kept
to a minimum.

IEWY News relates the Commission also examined and concluded that
Nordea had not received any State aid to buy Fiona, as the sale
was carried out in an open, transparent and unconditional tender
procedure and thus the price was in line with the market value.

Denmark has a framework scheme for handling distressed banks,
including their orderly winding down. An updated version of the
scheme was recently approved by the Commission. It provides for an
orderly winding up of a failing bank, transferring its assets and
part of its liabilities to a bridge bank.

The non-confidential version of the decision will be made
available under the case number N560/2009 in the State Aid
Register on the DG Competition Web site once any confidentiality
issues have been resolved. New publications of state aid decisions
on the internet and in the Official Journal are listed in the
State Aid Weekly e-News.


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


HONSEL AG: Files For Insolvency in Germany
------------------------------------------
RHJ International disclosed Monday that its 51% subsidiary, Honsel
AG, filed for insolvency in Germany, having failed to reach
agreement with all stakeholders on a sustainable restructuring
plan to allow for the continuation of the company.

As part of a restructuring in July 2009, RHJI invested
EUR50 million into the Honsel Group in exchange for a 51% stake in
the group, with the remaining 49% being held by Honsel's senior
term lenders.  Over the last year Honsel has incurred significant
operating losses.  Despite the equity support provided by RHJI in
the midst of the economic downturn and considerable efforts by
Honsel's management to address operating issues in manufacturing
in conjunction with new product launches, Honsel's financial
performance remained under pressure and resulted in a liquidity
shortfall.

Leonhard Fischer, RHJI's Chief Executive Officer, said, "We regret
that in spite of all efforts the company has not been able to turn
around its business."

The carrying value of the investment in Honsel as reflected in
RHJI's non- consolidated accounts stands at EUR50 million.  In
addition EUR20 million super senior credit facilities and
EUR15 million of leasing and factoring facilities are outstanding.

                      About RHJ International

RHJ International is a limited liability company incorporated
under the laws of Belgium, having its registered office at Avenue
Louise 326, 1050 Brussels, Belgium.

                          About Honsel AG

Honsel AG -- http://www.honsel.com/-- is a supplier of light
metal products to the automotive and heavy truck industries.
Honsel AG principally designs, manufactures and sells aluminum and
magnesium components and assemblies.  Honsel AG has four main
product categories: engine, transmission, suspension and body
components.


QIMONDA AG: Administrators Reach Settlement With U.S. Subsidiaries
------------------------------------------------------------------
Dow Jones Newswires reports that Qimonda AG said Monday its
insolvency administrator has reached a settlement with the
company's U.S. subsidiaries, Qimonda North America Corp. and
Qimonda Richmond LLC.

According to Dow Jones, the two U.S. companies have acknowledged
the parent's ownership of over 800 patents and patent applications
and abandoned claims of over $2.1 billion against Qimonda AG.

Dow Jones relates that an agreement was also reached on Qimonda
AG's claims of more than $1.7 billion against the U.S.
subsidiaries, and the U.S. subsidiaries' subsequent action against
the parent company in the U.S. Bankruptcy Court in Delaware.

Qimonda AG, Dow Jones notes, said it can now use its semiconductor
intellectual property portfolio without restriction, which has
9,000 patents and a number of patent applications.

"We will now put all our efforts into continuing to exploit the
patent portfolio by licensing and selling individual packages,"
Dow Jones quotes Qimonda AG insolvency administrator Michael Jaffe
as saying.

                         About Qimonda AG

Qimonda AG (NYSE: QI) -- http://www.qimonda.com/-- is a leading
global memory supplier with a diversified DRAM product portfolio.
The Company generated net sales of EUR1.79 billion in financial
year 2008 and had -- prior to its announcement of a repositioning
of its business -- approximately 12,200 employees worldwide, of
which 1,400 were in Munich, 3,200 in Dresden and 2,800 in
Richmond, Va.

Qimonda AG commenced insolvency proceedings in a local court in
Munich, Germany, on January 23, 2009.  On June 15, 2009, QAG filed
a petition (Bankr. E.D. Va. Case No. 09-14766) for relief under
Chapter 15 of the U.S. Bankruptcy Code.

Qimonda North America Corp., an indirect and wholly owned
subsidiary of QAG, is the North American sales and marketing
subsidiary of QAG.  QNA is also the parent company of Qimonda
Richmond LLC.  QNA and QR sought Chapter 11 protection (Bankr.
D. Del. Case No. 09-10589) on Feb. 20, 2009.  Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Maris J. Finnegan, Esq.,
at Richards Layton & Finger PA, represent the Debtors.
Roberta A. DeAngelis, the United States Trustee for Region 3,
appointed seven creditors to serve on an official committee of
unsecured creditors.  Jones Day and Ashby & Geddes represent the
Committee.  In its bankruptcy petition, Qimonda Richmond, LLC,
estimated more than US$1 billion in assets and debts.  The
information, the Debtors said, was based on Qimonda Richmond's
financial records which are maintained on a consolidated basis
with Qimonda North America Corp.


===========
G R E E C E
===========


* GREECE: May Default Within Three Years, El-Erian Says
-------------------------------------------------------
Susanne Walker at Bloomberg News reports that Pacific Investment
Management Co. Chief Executive Officer Mohamed A. El-Erian said
Greece is likely to default within three years because budget-
cutting measures won't be enough to reduce the nation's sovereign
debt burden.

A default is likely "as long as you can contain the contagion to
other countries and it is done through orderly restructuring and
repricing to retain competitiveness," Mr. El- Erian said at a
conference sponsored by the Economist magazine in New York on
Monday, according to Bloomberg.  "The alternative doesn't promise
growth and employment generation."

"I have never seen 11 percent of GDP being delivered" under the
current program assumptions, Mr. El Erian, as cited by Bloomberg,
said.  He said the debt burden at the end of the process is likely
to be higher than it was at the beginning, Bloomberg notes.

Bloomberg relates Europe's sovereign debt crisis erupted at the
end of 2009 after Greece's newly elected socialist government said
the budget deficit was twice as big as the previous administration
had disclosed.  The European Union and International Monetary Fund
approved the aid package on May 2 in exchange for the Greek
government agreeing to cut public-sector wages and pensions and
raise taxes on fuel, alcohol and cigarettes, Bloomberg recounts.


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


ANGLO IRISH: Debt Exchange May Trigger Default Swaps
----------------------------------------------------
John Glover at Bloomberg News reports that ratings firm DBRS said
Anglo Irish Bank Corp.'s offer to swap its subordinated debt for
new bonds is "tantamount to a default" because of the penalties
inflicted on investors who refuse to take part.

DBRS said in a statement that the lender's non-senior ratings will
be cut one step to D for "Default" after the lender completes the
exchange announced on Oct. 21.

"DBRS views the proposed exchange as offering bondholders limited
options," the ratings company said, according to Bloomberg.
"Should the bondholders reject the proposed exchange, at an 80
percent discount on tendered notes, they face the risk of
significant burden sharing."

                      Credit Default Swaps

Separately, Abigail Moses at Bloomberg News reports BNP Paribas SA
said the bank's offer to swap subordinated bonds for new notes may
trigger payouts on as much as US$420 million of credit-default
swap contracts.

According to Bloomberg, BNP Paribas credit analyst Olivia Frieser
said investors will have to approve changes to the terms of the
bonds to exchange them, causing a so-called restructuring credit
event on swaps linked to all of the bank's debt,

Bloomberg notes BNP Paribas prices show credit-default swaps
insuring EUR10 million of Anglo Irish's junior debt for five years
cost EUR7 million in advance and EUR500,000 annually.  Contracts
on the bank's senior debt cost EUR1.35 million in advance and
EUR500,000 annually, Bloomberg discloses.

Bloomberg relates the first opportunity to trigger the swaps is
Nov. 23, when holders of floating-rate lower Tier 2 notes due 2017
will vote on the debt exchange.

The decision on whether buyers of default protection can demand
payment on Anglo Irish debt will be made by a committee of dealers
and investors as members of the International Swaps & Derivatives
Association, Bloomberg states.  Auctions may then be held to
determine the value of the debt and how much should be paid out,
Bloomberg notes.

A total 674 contracts protecting a net US$420 million of Anglo
Irish's senior and subordinated debt were outstanding on Oct. 15,
Bloomberg reports, citing the Depository Trust & Clearing Corp.,
which runs a central registry for the market.  Under the terms of
the contracts, holders of swaps linked to both senior and
subordinated debt can demand payment, according to Bloomberg.

As reported by the Troubled Company Reporter-Europe on Oct. 25,
2010, Bloomberg News said Anglo Irish offered to exchange EUR1.6
billion (US$2.2 billion) of subordinated debt for new bonds at a
rate of 20 cents on the euro as the nationalized lender seeks to
generate capital.  Bloomberg disclosed Anglo Irish said in a
statement on Thursday that the lender will offer bondholders that
don't take up the exchange 1 cent per 1,000-euro face amount to
redeem their floating-rate lower Tier 2 notes due 2014, 2016 and
2017.  Bloomberg noted the new securities will be due 2011 and
guaranteed by the government.

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

                          *     *     *

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

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


SHANDON CLINICAL: Creditors to Appoint Liquidator on November 3
---------------------------------------------------------------
Edel O'Connell at Irish Independent reports that a creditors'
meeting to appoint a liquidator to Shandon Clinical Trials will
take place on November 3.

Irish Independent relates the clinical trial center made news
earlier this year when a number of its participants were rushed to
hospital.  The now-terminated trial involved healthy males using a
drug normally taken by cancer patients, Irish Independent notes.
Irish Independent says the Irish Medicines Board is investigating
the phase one trial, which was set up to determine the bio-
availability of a drug for its potential use in the treatment of
cancer.

Cork-based Shandon Clinical Trials conducts clinical studies on
healthy volunteers on behalf of many major pharmaceutical
companies.  It employs in the region of 13 support staff.


* IRELAND: Company Liquidations Left Unpaid Debt of EUR1.1 Billion
------------------------------------------------------------------
Irish companies that have gone bust this year have left unpaid
debts of well over EUR 1.1 billion in their wake, Belfast
Telegraph reports, citing figures from business information
specialist Vision-Net.

According to Belfast Telegraph, the figures show that 1,461
companies in the Republic have been liquidated since the beginning
of the year.

Another 33 insolvent companies have secured protection from their
creditors by getting an examiner appointed, while 302 firms were
taken over by their banks, Belfast Telegraph discloses.

The EUR 1.1 billion figure relates only to the insolvent
liquidations, which make up the vast majority of the 1,461
companies that have been liquidated in the year to date, Belfast
Telegraph notes.

The debt pile was calculated based on the last available accounts
for those liquidated companies, Belfast Telegraph states.  Many of
these filings were more than a year out of date, according to
Belfast Telegraph.


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


BANCO POPOLARE: Board Approves Up to EUR2 Billion Share Sale
------------------------------------------------------------
Francesca Cinelli at Bloomberg News reports that Banco Popolare SC
said its board approved a plan for a share sale of as much as EUR2
billion (US$2.8 billion).

Bloomberg relates Banco Popolare was cut to "underweight" at
Gruppo Banca Leonardo, to "hold" at Equita Sim SpA and Banca
Akros, and to "sell" at Hammer Partners.

Banco Popolare Societa Cooperativa is an Italy-based banking
company.  It offers a range of banking products and services,
including current and savings accounts, online banking, telephone
banking, investments, mutual funds, financial advice, credit and
debit cards and insurance.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 30,
2010, Moody's Investor Services changed the outlook to negative
from stable on the A2 long-term deposit rating and on the Prime-1
short-term deposit rating of Banco Popolare Societa Cooperativa
and downgraded the bank financial strength rating to D+ from
C- (which now translates to a Baa3 on the long-term rating scale).

Moody's commented that the downgrade and the negative outlook on
the deposit ratings of Banco Popolare reflect the significant
challenges that it faces.  Against an operating environment that
has become less accommodating for most Italian banks, Banco
Popolare needs to finalize the restructuring and integration of
its acquisitions, while at the same time it needs to establish a
profitable, well capitalized business model.  The obstacles it
faces towards this are significant: it has low capital levels, and
its internal capital generation is constrained by its low
profitability, whereas external capital raising in the market is
difficult with the company's corporate structure.  Disposal of
non-core assets could strengthen capital levels, but further
impact the bank's ability to generate sustainable profit and
weaken its franchise, according to Moody's.

While the bank is continuing to take measures aimed at de-risking
its operations and improving profitability, efficiency and
capital, Moody's believes that the achievement of these goals
however remains a significant challenge, and that further downward
rating pressure cannot be excluded if no visible progress is made.

Moody's said any lack of improvement in the bank's financial
profile, and a failure to reach a Core Tier 1 ratio above 7% in a
short timeframe in particular, could prompt Banco Popolare's BFSR
to become more weakly positioned in the D+ category, or even
result in a further lowering of the BFSR itself.


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


KAZKOMMERTSBANK: May Breach Financial Covenants on EBRD Loan
------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that Kazkommertsbank
said there's a "risk" it may breach financial covenants on a
US$300 million loan from the European Bank for Reconstruction and
Development.

Bloomberg relates Kazkommertsbank said in a statement on the
London Stock Exchange Group Plc Web site on Monday that under its
agreement with the EBRD, the lender's operating expenses may not
exceed 70% of operating income, and the bank is presently at
69.1%.

"Should the financial performance of the bank deteriorate, it
could breach this covenant, triggering cross-default and cross-
acceleration provisions in most of its other financing
arrangements," Kazkommertsbank said in a prospectus on its US$2
billion debt-issuance program, according to Bloomberg.  This
"would have a material adverse affect on the bank's business,
financial condition, results of operations and prospects."

Kazkommertsbank, as cited by Bloomberg, said it's in talks with
the EBRD to amend the terms of its loan, under which US$178.2
million of principal was outstanding as of June 30, "but there can
be no assurance that these negotiations will be successful."

                      About Kazkommertsbank

Kazakhstan-based Kazkommertsbank AO a.k.a Kazkommertsbank JSC
(KAS:KKGB) --  http://www.kkb.kz/-- is a commercial bank engaged
in the provision of financial and banking services for corporate
and individual clients.  The Bank offers such services as the
opening and maintaining of bank accounts, operations with
securities, debit and credit cards and safety deposit boxes,
currency exchange, lending, leasing and investment services,
Internet banking, financial intermediation, insurance services,
derivative instruments, guarantees and other financial services.
As of December 31, 2008, the Bank had 23 branches located in
Kazakhstan, one representative office located in London, the
United Kingdom, as well as 13 subsidiaries and one affiliated
company located in Kazakhstan, Russia, Tadzhikistan, and the
Netherlands.

                          *     *     *


As reported by the Troubled Company Reporter-Europe on Oct. 26,
2010, Moody's Investors Service downgraded the long-term senior
unsecured and subordinated debt ratings of Kazkommertsbank.
Moody's downgraded the bank's foreign currency senior unsecured
debt rating to B2 from Ba3.  It downgraded the bank's foreign
currency subordinated debt rating to B3 from B1.  The outlook on
the deposit and debt ratings is negative, while the outlook on the
E+ BFSR is stable.


ZHAIKMUNAI LP: S&P Raises Corporate Credit Rating to 'B'
--------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised to 'B'
from 'B-' its long-term corporate credit rating on Kazakhstan-
based oil and gas producer Zhaikmunai LP.  At the same time, S&P
removed the rating from CreditWatch positive where it had been
placed on Oct. 13, 2010.  The outlook is stable.

S&P also assigned a final 'B' long-term issue rating to financing
vehicle Zhaikmunai Finance B.V.'s long-term senior fixed-income
notes, guaranteed by Zhaikmunai.  S&P assigned the notes a
recovery rating of '3', reflecting its expectation of material
(50%-70%) recovery for noteholders in the event of a payment
default.

"The upgrade reflects S&P's opinion that Zhaikmunai's liquidity
profile has improved following the successful US$450 million five-
year bond issue and subsequent refinancing of all its existing
bank debt," said Standard & Poor's credit analyst Lucas S?venin.
This debt totaled US$383 million, including fees.  The 10.5%
coupon is in line with S&P's credit scenario.

Zhaikmunai reported first-half 2010 sales of US$75 million and
EBITDA of about US$43 million.  Its market capitalization stood at
about US$2 billion on Oct. 21, 2010.

S&P classify Zhaikmunai's business risk profile as "vulnerable,"
given the company's current low production of 7,260 barrels of oil
per day, some uncertainty on its major production step-up plan,
reserve concentration in a single field in northern Kazakhstan,
and exposure to country risk.

"The stable outlook factors in S&P's assumption that the company
will succeed in completing its gas treatment unit on time and
materially increase production toward the end of 2010," said
Mr. S?venin.

Therefore, S&P would expect EBITDA of at least US$140 million in
2010 and FFO to debt in the 15%-20% range.  S&P assumes a
significant EBITDA rise in 2011, thanks to the gas treatment unit.

S&P may consider lowering the rating if production does not
materially increase in line with the expected timetable, due to
delays in GTU completion or in signing the gas pricing agreement.
An upgrade in the medium term would depend on S&P's view of the
expected rise in EBITDA, future FOCF levels, and use of cash.


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


HARBOURMASTER PRO-RATA: Interest Rate Changes Won't Affect Ratings
------------------------------------------------------------------
Fitch Ratings says that Harbourmaster Pro-Rata CLO 1 B.V.'s
ratings will not be affected by the change of interest rate hedge
counterparty.

The notes are rated:

  -- EUR114m Class A1 (XS0253960735): 'AAsf'; Outlook Negative;
     'LS-3'

  -- EUR35m Class A2 (XS0253961386): 'A+sf'; Outlook Negative;
     'LS-4'

  -- EUR32m Class A3 (XS0253963168): 'BBB+sf'; Outlook Negative;
     'LS-5'

  -- EUR28m Class B1 (XS0253963754): 'BBsf'; Outlook Negative;
     'LS-5'

  -- EUR26m Class B2 (XS0253964307):'Bsf'; Outlook Negative; 'LS-
     5'

J.P. Morgan Bank Dublin plc (formerly Bear Stearns Bank plc) has
transferred by novation to J.P.  Morgan Securities Ltd the role of
interest rate hedge counterparty for the transaction.  JP Morgan
Chase Bank, N.A. (rated 'AA-'/Outlook Stable/'F1+') will guarantee
the liabilities of J.P.  Morgan Securities Ltd.  In Fitch's view,
Harbourmaster Pro-Rata CLO 1 B.V.'s ratings will not be affected
by the change of interest rate hedge counterparty.


RIJN FINANCE: Fitch Cuts Ratings on Two Classes of Notes to 'Dsf'
-----------------------------------------------------------------
Fitch Ratings has downgraded RIJN Finance Company BV and Corsair
(Jersey) No. 3 Limited, as listed below.  Both are CDO-squared
transactions referencing the same underlying portfolios - which
currently consist of underlying single tranche corporate synthetic
CDOs as well as direct exposure to corporate reference entities.

RIJN Finance Company BV:

  -- EUR15,000,000 Class A1: downgraded to 'CCsf' from 'CCCsf';
     Recovery Rating is 'RR-6'

  -- EUR35,000,000 Class A2: downgraded to 'CCsf' from 'CCCsf';
     Recovery Rating is 'RR-6'

  -- EUR11,661,000 Class B1: downgraded to 'Dsf' from 'CCsf'

  -- EUR18,765,500 Class B2: downgraded to 'Dsf' from 'CCsf'

Corsair (Jersey) No. 3 Limited:

  -- EUR50,500,000 Series 1: downgraded to 'CCsf' from 'CCCsf';
     'Recovery Rating is RR-6'

Fitch believes the senior classes in both transactions are likely
to default due to future portfolio losses.  As a result of the
settlement on Ambac Assurance Corporation, the class B1 and B2
notes of RIJN Finance Company BV have exhausted their available
credit enhancement resulting in the default of the notes.  Fitch
expects that a low number of further defaults will likely result
in the complete loss for the class B1 and B2 notes.  In Fitch's
view the limited remaining credit enhancement available to the
Class A1, A2, and Series 1 notes is not sufficient to maintain
'CCCsf' ratings.

Fitch has maintained the Issuer Report Grade at 'One Star'
reflecting poor investor reporting for both transactions.  Fitch
does not receive any regular reporting for these transactions and
only receives ad-hoc notifications such as credit event notices.


* NETHERLANDS: Draft Bill to Allow Central Bank to Sell Assets
--------------------------------------------------------------
Jurjen van de Pol at Bloomberg News reports that Dutch Finance
Minister Jan Kees de Jager is preparing a draft bill allowing the
country's central bank to sell assets of troubled lenders and
insurers without shareholders' approval.

Bloomberg relates the Dutch central bank, led by Nout Wellink, is
in favor of the proposed changes, which would allow it to take
control of a troubled financial company and transfer shares,
assets or liabilities to another firm or the government without
approval from a general meeting of shareholders.

Bloomberg notes the central bank used an emergency procedure last
year to take control of DSB Bank NV, based in Wognum, northern
Netherlands, following a run on its deposits.

The proposed change "creates an alternative to the financial
reorganization option in the emergency procedure, which has proven
ineffective," Mr. Wellink wrote in a letter to De Jager dated
Oct. 5, according to Bloomberg.

Bloomberg notes the central bank said the new legislation should
prevent companies from canceling contracts with financial
institutions that are taken over by the government, as this may
frustrate a restructuring.


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


BANK URALSKY: Moody's Affirms 'E+' Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has affirmed the E+ bank financial
strength rating and the B3/Not Prime long-term and short-term
local and foreign currency deposit ratings of Bank Uralsky
Financial House.  The outlook on all of the global scale ratings
is stable.  Concurrently, Moody's Interfax Rating Agency (which is
majority owned by Moody's) affirmed Ural FD's long-term national
scale rating of Baa2.ru.  The national scale rating carries no
specific outlook.

Moody's assessment is primarily based on Ural FD's audited
financial statements for 2009 prepared under IFRS, signed on 15
April 2010.

                         Rating Rationale

According to Moody's, Ural FD's ratings remain constrained by the
high single-party and industry concentrations in its loan
portfolio, which contributed to a material deterioration of the
bank's asset quality in the past two years, the low
diversification and relatively short duration of the bank's
funding base, as well as Ural FD's weak efficiency and modest
profitability.  Moody's noted nevertheless that the bank's capital
and reserve position remains adequate to absorb future potential
losses related to its credit and market exposures.  Factors
underpinning Ural FD's ratings are the bank's entrenched positions
in its home region of Perm, its relatively high capital adequacy,
and its affiliation with the Perm Financial and Industrial Group
(PFIG) -- a large investment holding company operating in a
variety of businesses and providing the bank with capital and
funding support.

The rating agency explained that Ural FD's E+/B3 BFSR and deposit
ratings have limited upward potential in the near future.  In the
longer term, however, a diversification of the bank's loan book
and funding sources could potentially provide positive momentum
for Ural FD's deposit ratings, if combined with sustainable
improvement of the bank's asset quality and profitability metrics.
By contrast, negative pressure could be exerted on Ural FD's
deposit ratings as a result of (i) any significant and prolonged
deterioration of asset quality that would suppress the bank's
regulatory capital to a level close to the minimum required level,
and/or (ii) a weakening of the bank's economic capital or
liquidity positions.

Moody's last rating action on Ural FD was on 28 November 2007 when
the rating agency assigned E+/B3/Not Prime/Baa2.ru first-time
ratings to the bank.

Domiciled in Perm, Russia, Ural FD reported -- as at 31 December
2009 -- total IFRS assets of US$468 million and total equity of
US$71.6 million.  The bank's net income for 2009 amounted to
US$800,000.


LOCKO-BANK: Moody's Affirms 'E+' Bank Financial Strength Rating
---------------------------------------------------------------
Moody's Investors Service has affirmed the E+ bank financial
strength rating and the B2/Not Prime long-term and short-term
local and foreign currency deposit ratings of Locko-bank (Russia).
The outlook on all of the global scale ratings is stable.
Concurrently, Moody's Interfax Rating Agency (which is majority
owned by Moody's) has affirmed Locko-bank's long-term national
scale rating of A3.ru.  The national scale rating carries no
specific outlook.

Moody's assessment is primarily based on Locko-bank's audited
financial statements for 2009 prepared under IFRS, signed on 20
April 2010, as well as the bank's unaudited financial statements
for 1H 2010 prepared under IFRS, signed on 16 September 2010.

                         Rating Rationale

According to Moody's, Locko-bank's ratings remain constrained by
the bank's modest franchise value, the still material single-name
concentrations in the bank's loan portfolio and its reliance on
short-term funding sources.  At the same time, the rating agency
notes Locko-bank's adequate corporate governance and risk
management practices, which have contributed to the bank's
relatively resilient financial fundamentals during the recent
financial crisis.

Locko-bank has been able to limit asset quality deterioration
during the crisis, while the total amount of overdue loans
declined to 4.06% at 30 June 2010 from 4.71% at 31 December 2009,
and were adequately covered by loan loss reserves (6.24% and
7.49%, respectively).  These levels are supported by the bank's
sufficient risk-weighted capitalization, with a Tier 1 ratio of
15.7% at 30 June 2010.  Locko-bank's liquidity position also
remains stable, and the bank has been consistently increasing its
core customer funding base in 2010 while also succeeding in the
placement of a RUB2.5 billion domestic bond issue in July 2010.

"Locko-bank's limited franchise and business diversification are
the major factors constraining the bank's deposit ratings at the
B2 level", comments Olga Ulyanova, Moody's AVP-Analyst and lead
analyst for this issuer.  "We have, however, observed some
positive trends in these areas that could eventually lead to
positive pressure on the bank's ratings in the future should they
prove more substantial and sustainable", Ms. Ulyanova adds.

Moody's last rating action on Locko-bank was on 24 January 2007
when the rating agency assigned E+/B2/Not Prime/A3.ru first-time
ratings to the bank.

Domiciled in Moscow, the Russian Federation, Locko-bank reported
-- as at 30 June 2010 -- total IFRS assets of US$1,275 million and
total equity of US$180 million.  The bank's net IFRS profits for
the first-half 2010 amounted to US$13 million.


NOMOS CAPITAL: Moody's Assigns 'Ba3' Rating to 2013 Loan Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a long-term foreign
currency senior debt rating of Ba3 to the US$400 million Loan
Participation Notes due 2013 issued by Nomos Capital Plc,
incorporated under the laws of Ireland, for the sole purpose of
providing a loan to Nomos Bank (Russia).  The outlook for the
rating is stable.

                        Ratings Rationale

Moody's says that the Ba3 rating assigned to the notes is based on
the fundamental credit quality of the underlying obligor, Nomos
Bank, rated Ba3/Not Prime/D- (stable outlook).  The rating
assigned to the notes does not benefit from any support from the
bank's shareholders or the Russian financial authorities.  The
rating reflects the status of the bank's obligations under the
loan received from Nomos Capital Plc that will rank at least pari
passu in right of payment with all other unsecured and
unsubordinated obligations of Nomos Bank, except as otherwise
provided by mandatory provisions of applicable law.

Therefore the rating assigned by Moody's is in line with Nomos
Bank's global foreign currency debt rating of Ba3, which is, in
turn, based on the bank's D- BFSR (mapping to a Baseline Credit
Assessment of Ba3).  The rating does not incorporate any
expectation of systemic or shareholder support for Nomos Bank in
case of need.  The rating is primarily constrained by (i)
relatively high risk appetite mainly reflected in long-term
lending for project finance including to the construction sector,
and to finance acquisitions, which, together with significant
concentration levels in the loan book, exert pressure on equity;
(ii) a concentrated funding base which renders the bank's
franchise and liquidity potentially vulnerable; (iii) relatively
undiversified business dominated by corporate and treasury
activities which, in turn, encompass significant concentrations
both by customers and by region, and (iv) potential corporate
governance concerns.

At the same time, Moody's observes that the rating is supported by
(i) Nomos Bank's reasonable position in the market stemming from
its demonstrated ability to develop and diversify both its
corporate franchise within its historically established niches,
(ii) reasonable capitalization levels supported by the
shareholders' willingness and ability to capitalize the bank as
was demonstrated in crisis times and (iii) the bank's ability to
demonstrate countercyclical revenues from stable sources, thanks
to good ability to retain its franchise in crisis times and
reasonable pricing power applied to its core clientele.

Headquartered in Moscow, Russia, Nomos Bank reported total
(audited) assets of RUB277 billion (US$9.2 billion) 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.


RVK-FINANCE LLC: Fitch Assigns 'BB-' Senior Unsecured Rating
------------------------------------------------------------
Fitch Ratings has assigned RVK-Finance LLC's prospective RUB3
billion bonds due to mature in November 2015 expected local
currency senior unsecured rating of 'BB-'.

The bonds issued by RVK-Finance LLC, a wholly-owned indirect
subsidiary of Ventrelt Holdings Ltd ('BB-'/Stable), benefit from
sureties provided on a joint and several basis from RVK-Invest
LLC, Krasnodar Vodokanal LLC, Tyumen Vodokanal LLC and Kaluzhsky
oblastnoy vodokanal LLC, which are all wholly-owned indirect
subsidiaries of the group.  Ventrelt Holdings is a privately owned
water and wastewater company that operates in Russia and Ukraine
under the name of Rosvodokanal.

The final ratings are contingent on the receipt of final documents
conforming materially to information already received.

The ratings reflect the existing regulatory framework in the
Russian Federation, the group's strong market position, its
moderate leverage and existing short-term funding structure.  To
date, water and sewage tariffs in Russian cities are negotiated
annually between the water utility company and the city
administration.  Tariffs take into consideration operating
expenditure budgets and envisaged capital programs, essentially
representing a cost-plus mechanism.  The ageing infrastructure in
the Russian Federation needs upgrading, for which some
municipalities are increasingly relying on private companies and
their operating expertise, as well as investment commitments.  The
changes in concession legislation introduced in 2010 provide for,
among other things, long-term utility tariffs that, when fully
implemented, would increase earnings visibility in the sector and
improve the legal status and protection of concessionaires.  Until
then, Fitch's assessment of the sector's business risk will be
based on the existing regulatory framework.

The group's net debt/EBITDA for FY09 was around 1.4x.  In order to
better capture operational performance, Fitch calculates net
debt/connection fee-adjusted EBITDA of 2.4x (deducting the capital
element included within EBITDA).  This measure is expected to
remain below 4x.  In addition, interest cover has fallen to around
3x due to additional debt over time and higher interest costs
during 2009.  The latter has reversed in the year to date and,
therefore, interest cover should strengthen in the short- to
medium-term.  Fitch's forecasts assume that economic conditions in
Russia do not allow for large tariff increases in the near future
and, therefore, capital expenditures will be contained at levels
commensurate with available cash flow, and, to a limited extent,
long-term bank borrowings.

The group's debt is capped by covenants within a RUB1.5 billion
secured facility signed in 2008 with EBRD.  The facility was
provided to certain group entities on a joint and several recourse
basis and has restrictions on dividends and related-party
transactions, as well as a requirement for independent directors.

All other funding is short-term, including the outstanding bonds
issued by RVK-Finance LLC, which mature in July 2011, and
borrowings from Russian banks.  In line with other Fitch-rated
entities, the refinancing risk was judged to be acceptable due to
the moderate financial gearing of the group, the long-term
contractual arrangements with municipalities to provide essential
infrastructure services and the implicit support from a number of
banks, including OJSC Alfa-Bank ('BB'/Stable), an entity under the
common control with the group, and Russian state-controlled banks
that can be expected to participate in municipality-related
financings.

Ventrelt Holdings' other rating is National Long-term 'A+(rus)'
with Stable Outlook (see Rating Action Commentary dated 8 October
2010 on www.fitchratings.com).  Part of the Russian Alfa Group,
Ventrelt Holdings consists of eight regional water and wastewater
utility companies in Barnaul, Kaluga, Krasnodar, Lugansk, Omsk,
Orenburg, Tver and Tyumen.


SYNERGY OA: Fitch Affirms Long-Term Issuer Default Rating at 'B'
----------------------------------------------------------------
Fitch Ratings has affirmed Russian vodka producer OAO Synergy
ratings at Long-term foreign currency Issuer Default 'B' and
National Long-term 'BBB+(rus)'.  This follows the completion of a
US$104 million (RUB3.2 billion) secondary public offering of
equity and of a three-year RUB3 billion bond issue.  The agency
has assigned a Long-term local currency IDR and a local currency
Senior Unsecured of 'B' to Synergy, as well as a rating of 'B'
with Recovery Rating of 'RR4' to the bond.  All Long Term IDRs and
the National Long-term rating have a Stable Outlook.

"The two transactions together significantly strengthen the
company's balance sheet and its headroom within the current 'B'
rating," said Giulio Lombardi, Senior Director in Fitch's
Corporates team.  "Synergy has now obtained the necessary funding
to make portfolio-filling acquisitions, reduce leverage, as well
as pay down all of its short-term debt.  Fitch expects only part
of the SPO proceeds to be deployed for M&A."

The SPO will result in the injection of RUB3.2bn into the company.
Fitch calculates that, on a pro-forma basis, the full application
of those proceeds to debt repayment would substantially reduce
Synergy's net debt position.  This could take FY10 net lease-
adjusted leverage to approximately 1x-1.2x, significantly lower
than FY09's 2.4x.  Also, Synergy's liquidity position is now
comfortable, with approximately RUB4bn available under its bank
lines, including the new lines obtained over the summer and
expected cash proceeds from the SPO.

Despite the positive impact on Synergy's balance sheet, its
ratings remain constrained by the company's small size and lack of
track record compared with 'B'/'B+' peers in the CIS region and in
Turkey.

Nevertheless, Fitch reiterates that positive momentum on the
ratings could result if the company delivers its revenues and
profit growth strategy over the next two years, maintains its
profit margins and maintains positive free cash flow and gross
lease-adjusted leverage at no higher than 1.5x and 2x
respectively.

The RUB3bn bond, which is a senior unsecured obligation of
Synergy, benefits from approved guarantees by its core operating
subsidiaries, Ussuriysky Balzam, Mariinsky liquoro vodochny zavod
and Traditsii Kachestva.  These accounted for approximately 42% of
FY09 group operating profit.  The bond matures in October 2013 but
is subject to a put option by bondholders from October 2012.  The
bond ranks junior, in structural terms, to approximately RUB3.0bn
of, mostly secured, bank debt currently outstanding at the
company's operating subsidiaries.

Using conservative assumptions under Fitch's going-concern
Recovery Ratings approach, with a 25% discount to the company's
FY09 EBITDA of RUB2.9 billion, and a distressed enterprise
value/EBITDA multiple of 5x, this analysis results in superior
recovery prospects for unsecured creditors.  This is despite the
analysis yielding a valuation for the company that represents a
45% discount to its current market capitalization.  Recoveries are
nonetheless capped at 'RR4' due to the Russian jurisdiction of
company assets.

With a 10% market share, Synergy is Russia's second largest vodka
maker.  It also operates a regional food business.


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


UBS AG: Moody's Downgrades Ratings on Medium Notes to 'Ba3'
-----------------------------------------------------------
Moody's Investors Service has downgraded the rating of these
credit linked notes issued by UBS AG.

Issuer: UBS AG

  -- Ser 1755, EUR14m FIX Zero Cpn Euro Medium Term Notes,
     Downgraded to Ba3: previously on July 30, 2010 Downgraded to
     Baa1

The transaction is a credit linked note issued by UBS AG and
referencing the Subordinated debt of Irish Life & Permanent plc,
currently rated Ba3.

The rating action is a response to the downgrade to Ba3 from Baa1
of the Subordinate rating of Irish Life & Permanent plc on 6
October 2010.

Moody's Investors Service did not receive or take into account a
third party due diligence report on the underlying assets or
financial instruments related to the monitoring of this
transaction in the past 6 months.

                      Regulatory Disclosures

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

Information source used to prepare the credit rating is these:
public information.

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

Moody's Investors Service may have provided Ancillary or Other
Permissible Service(s) to the rated entity or its related third
parties within the three years preceding the Credit Rating Action.

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.


===========
T U R K E Y
===========


PETROL OFISI: S&P Puts 'B+' Rating on CreditWatch Positive
----------------------------------------------------------
Standard & Poor's Ratings Services said that it had placed its
'B+' long-term corporate credit rating on Turkey-based petrol
distributor Petrol Ofisi A.S. on CreditWatch with positive
implications.

The CreditWatch placement follows an announcement by the company's
current owners, Dogan Holding (not rated) and OMV
Aktiengesellschaft (not rated), that they are in discussions on an
acquisition of Dogan Holding's 54.17% stake by OMV.

"The positive implications of the CreditWatch placement reflect
S&P's view that should such a transaction materialize S&P is
likely to raise the ratings on Petrol Ofisi by one notch or more,"
said Standard & Poor's credit analyst Per Karlsson.

This is because Petrol Ofisi would become an almost fully owned
subsidiary of OMV, whose direct or extraordinary financial support
would likely result in upward rating movement.  S&P further think
that Petrol Ofisi would benefit operationally from integration
with OMV.

The current ratings on Petrol Ofisi A.S. reflect the company's
significant exposure to currency and oil price volatility and
challenging domestic economic conditions.  They also reflect a
lack of meaningful geographic diversity.  S&P views the company's
current investment strategy as somewhat uncertain, given potential
further expansion into exploration and production.  These risks
are partly offset by the company's position as one of the leading
fuel distributors in Turkey, its strong market share, its storage
network, its relatively low re-contracting risk with dealers, and,
to a lesser extent, its fair profitability following recent
regulatory changes.

S&P expects to resolve the CreditWatch placement within the next
three months, during which time S&P expects the current
shareholders to reach a final decision on the proposed
transaction.  S&P also expects to obtain more data on the
company's future debt structure, operations, and strategy.  If the
proposed transaction does not proceed, S&P would likely re-affirm
the 'B+' ratings on Petrol Ofisi.


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


CORSAIR NO. 3: Fitch Lowers Rating on Series 1 Notes to 'CCsf'
--------------------------------------------------------------
Fitch Ratings has downgraded RIJN Finance Company BV and Corsair
(Jersey) No. 3 Limited, as listed below.  Both are CDO-squared
transactions referencing the same underlying portfolios - which
currently consist of underlying single tranche corporate synthetic
CDOs as well as direct exposure to corporate reference entities.

RIJN Finance Company BV:

  -- EUR15,000,000 Class A1: downgraded to 'CCsf' from 'CCCsf';
     Recovery Rating is 'RR-6'

  -- EUR35,000,000 Class A2: downgraded to 'CCsf' from 'CCCsf';
     Recovery Rating is 'RR-6'

  -- EUR11,661,000 Class B1: downgraded to 'Dsf' from 'CCsf'

  -- EUR18,765,500 Class B2: downgraded to 'Dsf' from 'CCsf'

Corsair (Jersey) No. 3 Limited:

  -- EUR50,500,000 Series 1: downgraded to 'CCsf' from 'CCCsf';
     'Recovery Rating is RR-6'

Fitch believes the senior classes in both transactions are likely
to default due to future portfolio losses.  As a result of the
settlement on Ambac Assurance Corporation, the class B1 and B2
notes of RIJN Finance Company BV have exhausted their available
credit enhancement resulting in the default of the notes.  Fitch
expects that a low number of further defaults will likely result
in the complete loss for the class B1 and B2 notes.  In Fitch's
view the limited remaining credit enhancement available to the
Class A1, A2, and Series 1 notes is not sufficient to maintain
'CCCsf' ratings.

Fitch has maintained the Issuer Report Grade at 'One Star'
reflecting poor investor reporting for both transactions.  Fitch
does not receive any regular reporting for these transactions and
only receives ad-hoc notifications such as credit event notices.


EUROPEAN PROPERTY: S&P Withdraws 'BB-' Rating on Class E Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'BB- (sf)' credit
rating on the class E notes in European Property Capital 4 PLC's
GBP481.885 million commercial mortgage-backed floating-rate notes,
following their prepayment.

The sole remaining loan securitized in this transaction was
advanced in July 2006 and is due to mature in July 2011, following
the one-year loan extension option that the borrower exercised.
The borrower made a GBP20 million voluntary prepayment in July
2010 to satisfy the whole-loan-to-value condition (75% maximum) to
extend the loan.

The cash manager applied the funds pro rata against the
securitized loan (GBP19.2 million) and the B notes (GBP0.8
million).  The cash manager subsequently applied the GBP19.2
million reverse sequentially against the notes.  As a result, the
issuer fully redeemed the class E notes.

At closing in October 2006, European Property Capital 4 acquired
two senior loans secured on 19 properties in the U.K.  Since
closing, the NPT loan has fully prepaid, leaving one loan and an
outstanding note balance of GBP236.4 million (from GBP481.9
million at closing).  The final maturity date of the notes is in
July 2014.


GLENTORAN FOOTBALL CLUB: Maybe Be Forced Into Administration
------------------------------------------------------------
Belfast Newsletter reports Glentoran Football Club Chairman Aubry
Ralph believes that the club is facing its biggest crisis in 70
years.  The report relates that spiralling debt problems have
thrown the very existence of the Irish League giants in doubt.

According to the report, last week it emerged that the Inland
Revenue has stepped up demands for the club to repay in the region
of GBP250,000 within the next 12 months.

"The club's financial position has been well documented. It is a
matter of public record and always has been. The debts at
Glentoran are nobody's fault except the people of Glentoran.  We
admit that and acknowledge we have the debt.  We had a system in
place to repay that money; otherwise we wouldn't have got a
licence to play in Europe or the Irish League. It appears that the
Inland Revenue, under pressure from the Government, are now moving
the goal posts and asking us to pay in a much quicker manner which
we can't do at the moment.  But we are hoping to get something
resolved and pave a way forward," Belfast Newsletter quoted Mr.
Ralph as saying.

The report notes that Glentoran could be forced into
administration if they fail to agree a repayment plan.

Mr. Ralph admits he doesn't know what the future holds, Belfast
Newsletter adds.

Glentoran Football Club is a Northern Irish football club.  The
club was founded in 1882 and plays its home games at the Oval in
east Belfast.  Club colours are green, red, and black.


LLOYDS BANKING: Shareholders Hold Protest Meeting on HBOS Takeover
------------------------------------------------------------------
BBC News reports that Lloyds Banking Group shareholders who lost
money after the former Lloyds TSB bought Halifax Bank of Scotland
have held a protest meeting in London.

According to BBC, the shareholders allege that former chancellor
Alistair Darling and Lloyds directors withheld vital information
in the run-up to the takeover in 2009.

The meeting was held by protest group Lloyds Action Now (LAN),
which is suing Lloyds directors and the government, BBC discloses.

BBC relates Lloyds TSB bought Halifax Bank of Scotland (HBOS) in
January 2009, subsequently renaming the business Lloyds Banking
Group.  However, when the extent of the combined bank's financial
woes were then revealed -- at the height of the financial crisis
-- its share price collapsed, BBC recounts.  The government then
had to step in and take a large minority stake in Lloyds, which
currently stands at 41%, BBC notes.

According to BBC, LAN claims an undisclosed GBP25.4 billion Bank
of England loan, given to HBOS a month before the takeover was
completed, should have been made public.  LAN says that private
investors lost as much as GBP2 billion as a result of the collapse
in Lloyds' share price and the end of dividend payments, BBC
discloses.  They are suing Lloyds directors and the government for
compensation, BBC relates.

Adrian Lithgow, campaign spokesman for LAN, as cited by BBC, said
the meeting, held in the Ambassadors Hotel in Bloomsbury, London,
was attended by about 250 people and was "highly successful" in
that it saw questions raised by Lloyds shareholders.

                     Stock-Market Flotation

As reported by the Troubled Company Reporter-Europe on June 21,
2010, The Irish Times said the Lloyds Banking Group was working on
plans for a stock-market flotation of the chain of 600 branches it
is being forced to sell by the European Commission.  The Irish
Times disclosed the float would create a new British bank with 5%
of the retail banking sector and an estimated market value of
between GBP3 billion and GBP4 billion.  Lloyds, 42% owned by
taxpayers, has been given four years to sell the business, which
it was ordered to divest as the price for receiving state aid at
the peak of the financial crisis, The Irish Times said.  The Irish
Times noted fears were mounting that it would struggle to find a
buyer.  Lloyds was examining the float as a back-up plan, The
Irish Times stated states.  Under the plan, Lloyds would fund the
new company until it was strong enough to support itself,
according to The Irish Times.

                  About Lloyds Banking Group PLC

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


MANSARD MORTGAGES: Fitch Affirms 'CCsf' Rating on Class B2a Notes
-----------------------------------------------------------------
Fitch Ratings has changed the Outlooks on five tranches of three
Mansard Mortgages transactions, a series of UK non-conforming
deals, to Stable from Negative.  Rating actions are listed at the
end of this announcement.

The investor reports for all three Mansard transactions in the
last two quarters have shown arrears stabilizing.  The majority of
the loans in the underlying pools have now reverted to variable
rates, and are benefiting from current low interest rates.  In
July 2010, the volume of loans in arrears by more than three
months (excluding repossessions) ranged between 10.2% (Mansard
2007-2) and 20.4% (Mansard 2006-1) compared with their peak, 11.9%
and 30%, in Q409 and Q109, respectively.

The revisions of Outlooks reflect Fitch's expectations of
increased credit support for the respective junior classes as the
reserve funds are replenished from their depleted levels.
However, with the current stable arrears trend, and subsequent
reduction in new foreclosures and losses incurred on sale of
underlying properties, the class B2a principal deficiency ledger
of Mansard 2006-1 is likely to be cleared in six payment dates.
Similarly, the reserve fund replenishment of Mansard 2007-1 is
expected to commence in 2011.  In the July 2010 payment date, the
outstanding balances on the class B2a PDL of Mansard 2006-1 and
Mansard 2007-1 stood at GBP5.2 million and GBP1.2 million,
respectively.

As of June 2010 the reserve fund of Mansard 2007-2 stood at 75.3%
of its target amount.  The level of future loss recognition will
determine the speed at which the reserve fund will fully recover
in this transaction.  In Fitch's view the reserve fund is expected
to reach its target amount in Q411, which is why the Outlooks on
classes M1a and M2a were revised to Stable.

At the same time, Fitch-calculated period weighted average loss
severities have declined across all three transactions compared
with levels seen in Q409.  With less properties sold, the period
WALS now range between 36.9% and 22.8% in Mansard 2006-1 and
Mansard 2007-1 respectively.  Given the adverse characteristics of
the underlying loans in these transactions (loans with high loan-
to-value ratios, high portion of buy-to-let and/or self-certified
borrowers, as well as a high number of interest-only loans), Fitch
believes that the ability of the borrowers to meet their payments
will be put under pressure, once interest rates begin to rise
(expected in 2012).  For this reason the agency has affirmed the
'CCC' and 'CC' ratings at the bottom of the structure.

The rating actions are:

Mansard Mortgages 2006-1 Plc

  -- Class A2a (ISIN XS0272297358) affirmed at 'AAAsf'; Outlook
     Stable; Loss Severity rating of 'LS-2'

  -- Class M1a (ISIN XS0272298752) affirmed at 'AA-sf'; Outlook
     Stable; Loss Severity rating of 'LS-3'

  -- Class M2a (ISIN XS0272299057) affirmed at 'BBB-sf'; Outlook
     revised to Stable from Negative; Loss Severity rating revised
     to 'LS-3' from 'LS-4'

  -- Class B1a (ISIN XS0272304311) affirmed at 'Bsf'; Outlook
     revised to Stable from Negative; Loss Severity rating revised
     to 'LS-4' from 'LS-5'

  -- Class B2a (ISIN XS0272303693) affirmed at 'CCsf'; Recovery
     Rating 'RR4'

Mansard Mortgages 2007-1 Plc

  -- Class A2a (ISIN XS0293438965) affirmed at 'AAAsf'; Outlook
     Stable; Loss Severity rating of 'LS-2'

  -- Class M1a (ISIN XS0293458054) affirmed at 'A+sf'; Outlook
     Stable; Loss Severity rating of 'LS-3'

  -- Class M2a (ISIN XS0293460381) affirmed at 'BBB-sf'; Outlook
     revised to Stable from Negative; Loss Severity rating of 'LS-
     3'

  -- Class B1a (ISIN XS0293442215) affirmed at 'CCCsf'; Recovery
     Rating 'RR2'

  -- Class B2a (ISIN XS0293446711) affirmed at 'CCsf'; Recovery
     Rating 'RR5'

Mansard Mortgages 2007-2 Plc

  -- Class A1a (ISIN XS0333305299) affirmed at 'AAsf'; Outlook
     Stable; Loss Severity rating of 'LS-2'

  -- Class A2a (ISIN XS0333306933) affirmed at 'AAsf'; Outlook
     Stable; Loss Severity rating of 'LS-2'

  -- Class M1a (ISIN XS0333308475) affirmed at 'Asf'; Outlook
     revised to Stable from Negative; Loss Severity rating of 'LS-
     4'

  -- Class M2a (ISIN XS0333311693) affirmed at 'BBsf'; Outlook
     revised to Stable from Negative; Loss Severity rating of 'LS-
     4'

  -- Class B1a (ISIN XS0333313988) affirmed at 'CCCsf'; Recovery
     Rating revised to 'RR1' from 'RR2'

  -- Class B2a (ISIN XS0333340361) affirmed at 'CCsf'; Recovery
     Rating revised to 'RR3' from 'RR5'


MAYPOLE GROUP: In Talks Regarding Appointment of Administrators
---------------------------------------------------------------
Further to the suspension of trading in the Company's shares
earlier Monday, Maypole Group plc disclosed that discussions
regarding a possible re-branding initiative referred to in the
Company's interim results announcement have failed to reach a
conclusion and that Clydesdale Bank plc, bankers to the Company
and its subsidiaries, has demanded repayment of its loans to the
Group.

Accordingly, the Company is now in discussions with Clydesdale
Bank plc regarding the appointment of Administrators and expects
to be able to announce further details later this week.

Maypole Group plc was founded in November 2003, with the intention
of being an acquisition vehicle for UK countryside hotels with
restaurants or pubs attached.


PORTSMOUTH FOOTBALL CLUB: Owner Maybe In charge for Shorter Period
------------------------------------------------------------------
Peter White at Express.co.uk reports that Portsmouth Football Club
Ltd. owner Balram Chainrai may be in charge of the Championship
club for a shorter period than even he anticipated.

According to the report, Mr. Chainrai, at the helm when Pompey
entered into administration last February, has taken over again
alongside brother Deepak and business partner Levi Kushnir.  The
report relates former Hull chairman Paul Duffen had already
intimated he may make an offer to become the new owner, and has
had talks with Mr. Chainrai's legal advisers as well as those of
Alexandre Gaydamak, who signed the necessary paperwork at the
weekend to allow Pompey to move out of administration.

Express.co.uk notes that Mr. Chainrai has made it clear all along
he is only back at Fratton Park short-term, and will be eager to
hear what Mr. Duffen has to offer.

In the meantime, the report notes Mr. Chainrai has pledged to do
all he can to stabilize the club.  The report relates Mr. Chainrai
said: "We look forward to working with the senior executive team
and the football manager, and to be part of the rebuilding process
of this historic club.  But we're not going to make any rash
promises.  We need to stabilize and will be taking time to get a
closer understanding of the business so we can ensure the club is
taken forward in the right way.  We are going to need to borrow
money from elsewhere, but that is all going to be discussed in
confirmation with all the assurances we've given to the Football
League."

Express.co.uk adds Chief executive David Lampitt said: "I see this
as a new period at the club, which is equally as important.  We've
got to take stock and get to know the new owners."

                     About Portsmouth Football

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


VAMOSA LIMITED: T-Mobile Acquires IP and Trademarks From Firm
-------------------------------------------------------------
Ian McConnell at Herald Scotland reports that the intellectual
property and trademarks of Vamosa Limited have been acquired by
mobile phone giant T-Mobile.  The report relates that a core of
about eight Vamosa staff will be taken on by T-Mobile following
the sale.

According to the report, joint administrator Fraser Gray, partner
of accountancy firm Zolfo Cooper, said there would be a return of
some of the Capital for Enterprise funding from the sale proceeds
but that this dividend would not cover the full GBP1 million
committed from this source.

As reported in the Troubled Company Reporter Europe on
September 22, 2010, The Herald Scotland said that Vamosa Limited,
which was among the first recipients of funding under the previous
Government's flagship Capital for Enterprise scheme has collapsed
into administration.  The report related that joint administrator
Fraser Gray, partner of accountancy firm Zolfo Cooper, cited
"quite a lot of creditor pressure" in the run-up to his
appointment to Vamosa Limited, with a number of winding-up
petitions being considered.

"We are delighted that the business has been sold and can be
developed in the hands of someone who has got the resources to
take it forward," Herald Scott quoted Mr. Gray as saying.

Vamosa Limited is a software company in Glasgow.


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


* Banks Must Reduce Dependence on Short-Term Debt, Gov. King Says
-----------------------------------------------------------------
Scott Hamilton at Bloomberg News reports that Bank of England
Governor Mervyn King said banks should seek more money from stock
investors to reduce dependence on short-term debt and protect
taxpayers from further bailouts of "too important to fail"
institutions.

"The broad answer to the problem is likely to be remarkably
simple," Mr. King said in a speech in New York late Monday,
according to Bloomberg.  "Banks should be financed much more
heavily by equity rather than short-term debt.  Much, much more
equity; much, much less short-term debt. Risky investments cannot
be financed in any other way."

"Ultimately, we need a system whereby the suppliers of funds to
risky activities, whether intermediated via banks or any other
entity, must understand that they will not be protected from loss
by taxpayer bailouts," Bloomberg quoted Mr. King as saying.
"Creditors should know that they will bear losses in the event of
failure."

Bloomberg relates banks worldwide are grappling with the new rules
approved in September by international regulators, meeting as the
Basel Committee on Banking Supervision.  Bloomberg notes while
Mr. King said the new rules on capital levels should be welcomed,
they were "insufficient to prevent another crisis."

Mr. King, as cited by Bloomberg, said even though the Bank of
England would have preferred higher capital ratios, it has no
intention of asking U.K. banks to adopt a faster timetable for
implementation of the Basel III regulations than the current
deadline of 2019.



                            *********

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 * * *