/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/101101.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, November 1, 2010, Vol. 11, No. 215 Headlines G E R M A N Y LANDESBANK BERLIN: Moody's Affirms 'D+' Bank Strength Rating G R E E C E PIRAEUS BANK: Mulls EUR800 Million Rights Offering * GREECE: Cost of Insuring Debt Against Default Risk Rises I R E L A N D ANGLO IRISH: Refuses to Meet Rebel Bondholders Over Debt Exchange CHARTBUSTERS: Set to Appoint Liquidator NOMOS CAPITAL: Fitch Assigns 'BB-' Rating to Senior Unsec. Loan L U X E M B O U R G EUROMAX IV: S&P Cuts Ratings on Five Classes of Notes to 'CC (sf)' M A C E D O N I A * Fitch Gives Stable Outlook on Macedonia; Affirms 'BB+' Rating R U S S I A ABSOLUT BANK: Fitch Affirms Individual Rating at 'D/E' NORDEA BANK: Fitch Upgrades Individual Rating to 'D' RUSHYDRO FINANCE: Moody's Assigns 'Ba1' Rating to Senior Bonds RUSHYDRO FINANCE: Fitch Assigns 'BB+' Rating to Loan Notes S W I T Z E R L A N D OMEGA CAPITAL: S&P Withdraws CCC+ (sf) Ratings on 2 Note Classes T U R K E Y YUKSEL INSAAT: Moody's Assigns (P)'B1' Rating to Senior Notes YUKSEL INSAAT: Fitch Assigns 'B' Senior Unsecured Rating U N I T E D K I N G D O M ARDEONAIG HOTEL: Placed Into Administration; Abandoned by Owner BAA PLC: Moody's Assigns (P)'Ba3' Rating to Senior Secured Notes BAA PLC: Fitch Assigns 'BB+' Rating to Q1 2017 Notes COAST TO COAST: Goes Into Administration CONWAY STEWART: Goes Into Administration DUNDEE FOOTBALL CLUB: Rhys Weston Appeals for Leniency LOTHIAN MORTGAGE: S&P Affirms 'BB (sf)' Ratings on Class E Notes ROYAL BANK: Appoints Advisers for Insurance Unit Disposal SOUTHERN CARE: Conwy County Staff Fear for Futures TARGETFOLLOW ESTATE: Owner Lashes Out at Lloyds X X X X X X X X * BOND PRICING: For the Week October 25 to October 29, 2010 ********* ============= G E R M A N Y ============= LANDESBANK BERLIN: Moody's Affirms 'D+' Bank Strength Rating ------------------------------------------------------------ Moody's Investors Service has affirmed Landesbank Berlin AG's D+ bank financial strength rating and A1 long-term debt and deposit ratings. The BFSR now maps to a Baseline Credit Assessment of Baa3 compared with Ba1 previously. Simultaneously, the rating agency affirmed the A2 subordinated and Prime 1 short-term ratings. The outlook on all ratings is stable. "The rating affirmation reflects LBB's steady progress in improving its financial profile while maintaining a diverse franchise focused on retail banking, corporate banking, real- estate financing and financial market trading. The change in the BCA to Baa3 from Ba1 reflects LBB's improved capacity to absorb potential losses given its Tier 1 ratio of 8.9% (as of H1 2010 for LBB Holding) and that its problem loan ratio has improved over recent years," explains Claude Raab, a Moody's Analyst. Grandfathered liabilities that continue to benefit from the statutory guarantees of Anstaltslast and Gewaehrtraegerhaftung are rated Aa1, based on the creditworthiness of LBB's principal guarantor, the City of Berlin and are not affected by the rating announcement. Ratings Rationale LBB's D+ BFSR incorporates (i) its robust retail and SME franchise in the Greater Berlin Area; (ii) the good progress it has made in financial restructuring and repositioning the group's strategy; and (iii) the improving financial profile, reflected in the steady improvement in LBB's profitability and asset quality. At the same time, the rating remains constrained by LBB's still- high (but significantly improved) problem loan ratio, which stabilized at 5.8% at year-end 2009 from levels as high as 7.7% in 2007 (according to the latest audited annual report). Furthermore, the current BFSR also incorporates the weak quality of LBB's capital, which remains reliant on a significant silent participation from its majority shareholder. Moody's anticipates that LBB will take the necessary steps to bolster its capitalization in order to meet future regulatory requirements, which is also expressed in the higher BCA of Baa3. LBB's A1 long-term global local-currency deposit rating reflects: (i) the very high support from cross-sector mechanisms in place for German public sector banks, particularly given the majority ownership through Sparkassen-Finanzgruppe (S-Finanzgruppe; Aa2/C+, with a stable outlook), which Moody's believe provides strategic clarity for LBB and may contribute to a further strengthening of LBB's franchise; and (ii) the high probability of systemic support, if needed. This rating thus receives a five-notch uplift from the BCA. The outlook on all ratings is stable and incorporates Moody's expectation that LBB's profile will continue to balance its stable retail activities with the riskier real-estate financing and capital markets business, while also preserving current levels of risk-adjusted profitability and capitalization. The most recent rating action on LBB was implemented on 19 November 2009, when Moody's affirmed the BFSR at D+ and the long- term term ratings at A1 with a stable outlook. Headquartered in Berlin, Germany, Landesbank Berlin Holding had total (audited) assets of EUR144.8 billion as of the end of June 2010. =========== G R E E C E =========== PIRAEUS BANK: Mulls EUR800 Million Rights Offering -------------------------------------------------- Piraeus Bank SA is planning to raise EUR800 million (US$1.1 billion) from a rights offering, Elisa Martinuzzi, Zijing Wu and Maria Petrakis at Bloomberg News report, citing two people familiar with the situation. According to Bloomberg, one of the people, who declined to be named because the information isn't yet public, said the sale may take place in January. Piraeus Bank S.A. -- http://www.piraeusbank.gr-- is an Athens, Greece-based financial and banking services group. The Bank offers its services through three divisions: Individuals, which includes deposit and investment solutions, loans, cards, insurance products, wealth management and electronic banking services; Companies and Professionals, which includes business deposit solutions, business financing solutions and funds transfer, and Large Enterprises, which includes financing products, asset management, risk management and investment banking. During the year ended December 31, 2008, the Bank had 358 branches in Greece and 537 branches internationally, of which 38 were in Greece and 113 were in South-Eastern European countries, Egypt and Cyprus. Its group companies are active in retail, corporate, international and investment banking, as well as in asset management and real estate. * * * As reported by the Troubled Company Reporter-Europe on Oct. 5, 2010, Fitch Ratings affirmed Athens-based Piraeus Bank's Individual rating at 'D' and removed it from Rating Watch Negative following its announcement that it withdrew its bids for stakes in Agricultural Bank of Greece and TT Hellenic Postbank currently owned by the Greek government. Fitch said the Individual rating factors in deteriorating asset quality and profitability amid a recessionary environment in Greece, the bank's heavy reliance on funding from the European Central Bank (28% of non-equity funding at end-H110) and exposure to the Greek government (rated 'BBB-'/Negative) via its considerable portfolio of Greek government debt (EUR8.6 billion at end-H110) and below peer average capital ratios, although these remain adequate. * GREECE: Cost of Insuring Debt Against Default Risk Rises ---------------------------------------------------------- Art Patnaude at The Wall Street Journal reports that the cost of insuring Greek government debt against the risk of default jumped Wednesday, October 27, underscoring investor concerns about the heavily indebted country less than two weeks ahead of a key national election. According to The Journal, the annual cost of insuring US$10 million of Greek debt for five years jumped US$73,000 to US$754,000. The cost of insurance, as measured by credit default swaps, had risen US$14,000 on Tuesday, The Journal notes. The Journal relates Mohamed El-Erian, chief executive and co-chief investment officer of bond giant Pimco, warned at a conference in New York Monday last week that he expects Greece will default on its debt within three years. The Journal notes Mr. El-Erian added that it is in Europe's interest for Greece to default "because the alternative doesn't promise growth and employment generation." George Papaconstantinou, the country's finance minister, told the Associated Press Wednesday that the country isn't looking now to extend the repayment period of an emergency bailout loan, but he isn't ruling it out, according to The Journal. In May, Greece narrowly avoided bankruptcy by agreeing to a series of painful measures in exchange for a EUR110 billion (US$152.37 billion) bailout from the International Monetary Fund and the European Union, The Journal recounts. Under the terms of that deal, the country aims to cut its budget deficit by more than a third by the end of 2011, The Journal discloses. Greek elections are scheduled for Nov. 7, and are seen as a first critical test of the socialist government's standing after a year in power and several rounds of spending cuts and tax increases, The Journal states. ============= I R E L A N D ============= ANGLO IRISH: Refuses to Meet Rebel Bondholders Over Debt Exchange ----------------------------------------------------------------- John Murray Brown, Jennifer Hughes and Anousha Sakoui at The Financial Times report that Anglo Irish Bank has refused to meet its rebel bondholders in spite of a threat from one group with a stake big enough to stall parts of a EUR2 billion (GBP1.75 billion) debt exchange offered by the bailed-out bank. The FT relates Alan Dukes, chairman of Anglo Irish, reiterated the bank's take-it-or-leave-it stance after the rebels threatened to derail the process by voting against the exchange. According to the FT, some of the bank's junior bondholders have complained about "unequal" treatment in the deal, which offers junior noteholders new government-guaranteed bonds worth 20% of the face value of their current holdings. The rebels have called for meetings with the bank, which has taken almost EUR30 billion in government funds following losses from a property lending spree, the FT notes. "We have published an offer and people will decide whether or not they take it up. I hope they do," the FT quoted Mr. Dukes as saying. "We're satisfied that the operation we're doing is a legitimate one [and] that it will succeed." The FT relates junior bondholders had expected an offer well below the bonds' face value, but the tough 20-per-cent-or-nothing approach stunned them and the City. Mr. Dukes has also ruled out any similarly tough action against the bank's senior bondholders, the FT states. As reported by the Troubled Company Reporter-Europe on Oct. 29, 2010, The FT said the ad hoc group of investors, represented by law firm Brown Rudnick and investment bank Houlihan Lokey, said they held enough bonds in one of the bank's so-called lower tier two notes to block moves by the bank to force bondholders to accept a tender offer of that issue. The FT disclosed the investors say they do not plan to participate in the tender and will vote against the extraordinary resolutions contained in it. If more than 75% of bondholders approve the offer by participating, the company may force dissenting bondholders to sell their bonds back to the bank for just one cent for every EUR1,000 of the bonds' face value, the FT noted. The group, as cited by the FT, said Anglo Irish's proposal is inconsistent with principles of fair and equal treatment of creditors. The bank has scheduled meetings in December for bondholders to vote on the offer, the FT disclosed. The FT said acceptance will require a two-thirds turnout, and 75% of those present, to vote in favor. 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 Oct. 29, 2010, 2010, Standard & Poor's Ratings Services said that it lowered its rating on Anglo Irish Bank Corp. Ltd.'s nondeferrable dated subordinated debt (lower Tier 2) securities to 'D' from 'CCC'. The downgrade of the lower Tier 2 debt rating reflects S&P's opinion that this exchange offer is a "distressed exchange" and tantamount to default in accordance with its criteria. CHARTBUSTERS: Set to Appoint Liquidator --------------------------------------- Barry O'Halloran at The Irish Times reports that Chartbusters is understood to be preparing to appoint a liquidator to wind up the business just 18 months after the High Court approved a rescue plan for the company. The Irish Times relates sources said Thursday that the company's DVD operation has continued to decline this year, while controversy over health risks has hit demand for tanning booths. According to The Irish Times, sources also said that the directors are likely to propose the appointment of Tom Keane, a partner with Dublin accountants, BKRM, as liquidator to Chartbusters. The Irish Times reports a number of local authorities and businesses have registered judgments against the company in recent months. These include Ardkeen Shopping Centre in Waterford, which has two judgments totalling almost EUR75,000; and South Dublin County Council, to which it owes EUR62,000, The Irish Times discloses. Chartbusters is a DVD rental chain. The company operates about 20 stores and employs an estimated 170 full- and part-time staff in Ireland. NOMOS CAPITAL: Fitch Assigns 'BB-' Rating to Senior Unsec. Loan --------------------------------------------------------------- Fitch Ratings has assigned Nomos Capital Plc.'s US$400 million senior unsecured loan participation notes due 2013 paying 6.5% coupon a final Long-term rating of 'BB-'. Nomos Capital Plc., an Ireland-domiciled special-purpose vehicle, uses the proceeds from the note issuance to finance a senior unsecured loan to Nomos Bank (rated 'BB-'/Stable) and will only pay noteholders principal and interest received from the bank. =================== L U X E M B O U R G =================== EUROMAX IV: S&P Cuts Ratings on Five Classes of Notes to 'CC (sf)' ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its credit ratings on four classes of EUROMAX IV MBS S.A.'s notes. At the same time, S&P lowered its rating on Barbican No. 1 Ltd.'s series 2006-1 notes. The rating action follows the receiver's recent notification to us that there has been a change to the transaction's priority of payments, so that the post-enforcement waterfall is now being applied. This means that cash proceeds will first be used to repay class A1 interest and principal, and that classes A2 and B will receive payments only once class A1 has been fully repaid. S&P's ratings on classes A2 and B address timely payment of interest, and while S&P believes that it is likely that they missed timely payment of interest on the latest payment date, S&P has not received confirmation of this. Therefore, at this time S&P is affirming its 'CC (sf)' rating on these classes of notes. S&P has also been informed that the receiver has appointed a financial advisor to undertake a valuation of the underlying assets and that an auction of the transaction's assets is likely to occur by mid-December. Following a portfolio liquidation, the class A1 notes will be repaid first, so S&P has chosen to affirm its 'CCC- (sf)' rating on those notes. At the same time, S&P believes that the class C, D, F1 combination, and F2 combination notes are highly vulnerable to nonpayment. S&P has therefore lowered the ratings on these classes to 'CC (sf)' from 'CCC- (sf)'. Barbican No. 1 is a combination note comprising components of EUROMAX IV MBS' class B and subordinated notes. Since, in S&P's view, the repayment of the Barbican notes relies on the ability to repay class B in EUROMAX IV MBS, S&P has lowered these ratings to 'CC (sf)' from 'CCC- (sf)'. S&P reviewed both transactions in line with its surveillance methodology for cash flow transactions subject to an event of default. EUROMAX IV MBS is a cash flow collateralized debt obligation of European asset-backed securities transaction that closed in October 2005. Barbican No. 1 is a combination note comprising components of EUROMAX IV MBS's class B and subordinated notes. Ratings List EUROMAX IV MBS S.A. ?206.45 Million Secured Floating-Rate Notes Ratings Lowered Rating ------ Class To From ----- -- ---- C CC (sf) CCC- (sf) D CC (sf) CCC- (sf) F1 Combo CC (sf) CCC- (sf) F2 Combo CC (sf) CCC- (sf) Ratings Affirmed Class Rating ----- ------ A1 single CCC- (sf) A1 delayed CCC- (sf) A1 fltg CCC- (sf) A2 CC (sf) B CC (sf) Barbican No. 1 Ltd. ?4.9 Million EUROMAX IV Combination Notes Series 2006-1 Ratings Lowered Rating ------ Class To From ----- -- ---- 2006-1 CC (sf) CCC- (sf) ================= M A C E D O N I A ================= * Fitch Gives Stable Outlook on Macedonia; Affirms 'BB+' Rating --------------------------------------------------------------- Fitch Ratings has revised Macedonia's Outlook to Stable from Negative. Fitch has simultaneously affirmed the sovereign's Long-term foreign currency Issuer Default Rating at 'BB+', Long- term local currency IDR at 'BB+', and Short-term foreign currency IDR at 'B'. The agency has also affirmed the Country Ceiling at 'BBB-'. "The revision to Macedonia's outlook reflects reduced pressure on its external finances, as the current account deficit has narrowed significantly and foreign-exchange reserves have fully recovered after falling sharply during the initial phase of the global financial crisis," said Douglas Renwick, Associate Director in Fitch's Emerging Europe Sovereign team. "Disciplined fiscal policy, which has kept the budget deficit at less than 3% of GDP, and the start of a recovery in output further support the rating action." Macedonia's official reserves are back at their pre-crisis levels, after falling by roughly a third in H109. The current account deficit has tightened significantly to a forecast 3.2% in 2010, which has reduced the country's dependence of foreign capital. Fitch notes that monetary policy through the crisis has been robust, with the central bank tightening interest rates to defend the currency peg in late 2008/early 2009, and loosening as these pressures eased. The recession in Macedonia has been mild by regional comparison, with a GDP contraction of only 0.8% in 2009. Public finances are a rating strength. The fiscal deficit has remained below 3% of GDP throughout the crisis, and Fitch expects this to remain the case over the medium term. The debt stock (low at 23.7% of GDP in 2009) is thus already on a sustainable path. On the financing side, Fitch expects the government to return to international capital markets in the next 12 months, but financing from the domestic debt market is mainly FX-indexed and short-term. Political risk weighs on the ratings. However, the 2001 Ohrid Agreement, which ended inter-ethnic conflict, has proved successful in maintaining peace and political stability. In Fitch's view, the EU and NATO accession processes are important anchors for entrenching political stability and pro-reform sentiment. However, Fitch expects little official progress towards these goals while the dispute with Greece about Macedonia's constitutional name remains unresolved. The banking system is well capitalized and liquid, and reliance on foreign funding is low (deposits exceed loans). Although Greek subsidiaries form 25% of the system by assets, these banks have little need of their parents' liquidity or capital. Governance in Macedonia is in line with 'BB'-range peers, as is income per capita. The government has passed legislation on a raft of structural and pro-business reforms in recent years. Although the actual ease of doing business in Macedonia has not quite kept pace with the official Ease of Doing Business score, it is improving. =========== R U S S I A =========== ABSOLUT BANK: Fitch Affirms Individual Rating at 'D/E' ------------------------------------------------------ Fitch Ratings has upgraded the Individual ratings of four foreign- owned Russian banks: ZAO UniCredit Bank, ZAO Raiffeisenbank and ZAO Citibank to 'C/D' from 'D' and OJSC Nordea Bank to 'D' from 'D/E'. The Individual rating upgrades reflect stabilization of the banks' asset quality in an improved macroeconomic environment, and currently comfortable capital and liquidity positions at each of the institutions. The Individual rating of Absolut Bank has been affirmed at 'D/E'. At the same time, Fitch has placed ZAO Citibank's 'BBB+' Long-term Issuer Default Rating on Rating Watch Evolving and maintained Absolut's 'BB+' Long-term IDR on RWE. The Long-term IDRs of ZAO UniCredit Bank, ZAO Raiffeisenbank and OJSC Nordea Bank have been affirmed at 'BBB+' with Positive Outlooks. All five banks' IDRs are driven by potential support from foreign shareholders. Fitch has also assigned ZAO Raiffeisenbank's upcoming issues of fixed-rate RUB-denominated bonds (Series 01-10) expected ratings of Long-term 'BBB+' and National Long-term 'AAA(rus)'. The three- year bonds have been registered in 10 series, with issue sizes of RUB10 billion, RUB7 billion or RUB5 billion. The final rating is contingent on the receipt of final documents conforming to information already received. A full list of rating actions is provided at the end of this commentary. ZAO UniCredit Bank and ZAO Raiffeisenbank have achieved reasonable performance during 2009-H110, and capital positions have been supported by internal capital generation and loan book contraction. Although deterioration in asset quality has been significant, along with the sector, loan impairment for the two banks is somewhat below peers and the banks have remained profitable, notwithstanding increased provisioning requirements. At end-H110, ZAO Unicredit reported NPLs (loans overdue by more than 90 days) of 7% and a Basel II tier 1 ratio of 11.8%. At end- 2009, ZAO Raiffeisenbank reported NPLs of 8.2% and a Basel II tier 1 ratio of 17% and there were no significant changes in these parameters at end H110. Liquidity positions are comfortable, customer deposits have been stable and the dependence on parent institutions for funding is quite moderate, and at ZAO Raiffeisenbank reducing. ZAO UniCredit Bank is 100%-owned by UniCredit S.p.A. ('A'/Negative) through its Vienna-based subsidiary UniCredit Bank Austria AG ('A'/Stable). ZAO Raiffeisenbank is almost 100% directly and indirectly owned by Raiffeisen Bank International AG ('A'/Stable). ZAO Citibank's regulatory capital ratio improved to a strong 24.5% at end-Q310 from 19% at end-2008, reflecting continued strong profitability. NPLs were a moderate 4.8% of gross loans at end- Q310. The bank continues to be locally funded by customer deposits, which accounted for 94% of liabilities at end-Q310 statutory accounts. At the same time, balance sheet liquidity remains high with liquid assets (up to 30 days) covering about 72% of customer deposits at end-Q310. The RWE on ZAO Citibank's Long-term IDR reflects the potential for the rating to be both downgraded and upgraded in the near-term. The rating could be upgraded if Russia's 'BBB+' Country Ceiling is upgraded, together with the sovereign 'BBB' Long-term IDRs, which are currently on Positive Outlook. The rating could be downgraded if Citigroup Inc's 'A+' Long-term IDR is downgraded to 'BBB+', which corresponds to Fitch's current assessment of Citigroup's stand-alone financial strength. Citigroup's Long-term IDR was placed on Rating Watch Negative on 22 October 2010. ZAO Citibank is 100%-owned by Citigroup. OJSC Nordea Bank's asset quality remained sound at end-H110, with NPLs a low 1.4%, while the Basel I tier 1 capital ratio was reported at a comfortable 21.2%. The bank's concentrated credit risk exposure is reduced by guarantees from its 100% owner, Nordea Bank AB, on 70% of the top 20 borrowers, and a majority of the loan book has been approved at the parent level. Dependence on parent funding is high. Absolut's Long-term IDR reflects potential support from its 95% shareholder, Belgian KBC Bank (rated 'A'/Stable), while the RWE reflects KBCB's intention to divest the bank. According to the restructuring plan approved by European Commission, KBCB is to sell Absolut by 2012, although that deadline may be postponed by up to three years if reasonable purchase offers are not received. Although KBCB has informed Fitch that it is not currently in negotiations with any specific potential buyer, the possibility remains that an investor may emerge in the short-term, which would trigger a reassessment of Absolut's ratings. The Individual Rating reflects substantial pressure on Absolut's asset quality, with NPLs at about 16% at end-H110 and a substantial 20% of the loan book restructured/rolled-over. Absolut expects a net loss for 2010 as a result of high credit costs, while the bank remains profitable on a pre-impairment level. The Basel I tier 1 ratio was 13.1% at end-H110, but will decrease if the bank reports losses in H210 as forecasted. At the same time, Fitch notes Absolut's solid liquidity position, supported by a contracting loan book, retail deposit growth and substantial parent funding (the latter equal to 54% of Absolut's liabilities at end-H110). The rating actions are: ZAO Raiffeisenbank -- Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook Positive -- Long-term local currency IDR: assigned at 'BBB+'; Outlook Positive -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support Rating: affirmed at '2' -- Senior unsecured debt: affirmed at 'BBB+'/F2 and at 'AAA(rus)' -- Senior unsecured upcoming RUB-denominated bonds: assigned Long-term 'BBB+ (exp)' and National Long-term 'AAA(rus)(exp)' -- Individual Rating: upgraded to 'C/D' from 'D' ZAO Unicredit Bank -- Long-term foreign and local currency IDRs: affirmed at 'BBB+'; Outlook Positive -- Short-term foreign and local currency IDRs: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support Rating: affirmed at '2' -- Individual Rating: upgraded to 'C/D' from 'D' ZAO Citibank -- Long-term foreign currency IDR 'BBB+' placed on RWE -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support Rating: affirmed at '2' -- Individual Rating: upgraded to 'C/D' from 'D' OJSC Nordea Bank -- Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook Positive -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support Rating: affirmed at '2' -- Individual Rating: upgraded to 'D' from 'D/E' Absolut Bank -- Long-term foreign currency IDR 'BB+'; RWE maintained -- Short-term foreign currency IDR: affirmed at 'B' -- National Long-term rating 'AA(rus)'; RWE maintained -- Support Rating '3'; RWE maintained -- Individual Rating: affirmed at 'D/E' NORDEA BANK: Fitch Upgrades Individual Rating to 'D' ---------------------------------------------------- Fitch Ratings has upgraded the Individual ratings of four foreign- owned Russian banks: ZAO UniCredit Bank, ZAO Raiffeisenbank and ZAO Citibank to 'C/D' from 'D' and OJSC Nordea Bank to 'D' from 'D/E'. The Individual rating upgrades reflect stabilization of the banks' asset quality in an improved macroeconomic environment, and currently comfortable capital and liquidity positions at each of the institutions. The Individual rating of Absolut Bank has been affirmed at 'D/E'. At the same time, Fitch has placed ZAO Citibank's 'BBB+' Long-term Issuer Default Rating on Rating Watch Evolving and maintained Absolut's 'BB+' Long-term IDR on RWE. The Long-term IDRs of ZAO UniCredit Bank, ZAO Raiffeisenbank and OJSC Nordea Bank have been affirmed at 'BBB+' with Positive Outlooks. All five banks' IDRs are driven by potential support from foreign shareholders. Fitch has also assigned ZAO Raiffeisenbank's upcoming issues of fixed-rate RUB-denominated bonds (Series 01-10) expected ratings of Long-term 'BBB+' and National Long-term 'AAA(rus)'. The three- year bonds have been registered in 10 series, with issue sizes of RUB10 billion, RUB7 billion or RUB5 billion. The final rating is contingent on the receipt of final documents conforming to information already received. A full list of rating actions is provided at the end of this commentary. ZAO UniCredit Bank and ZAO Raiffeisenbank have achieved reasonable performance during 2009-H110, and capital positions have been supported by internal capital generation and loan book contraction. Although deterioration in asset quality has been significant, along with the sector, loan impairment for the two banks is somewhat below peers and the banks have remained profitable, notwithstanding increased provisioning requirements. At end-H110, ZAO Unicredit reported NPLs (loans overdue by more than 90 days) of 7% and a Basel II tier 1 ratio of 11.8%. At end- 2009, ZAO Raiffeisenbank reported NPLs of 8.2% and a Basel II tier 1 ratio of 17% and there were no significant changes in these parameters at end H110. Liquidity positions are comfortable, customer deposits have been stable and the dependence on parent institutions for funding is quite moderate, and at ZAO Raiffeisenbank reducing. ZAO UniCredit Bank is 100%-owned by UniCredit S.p.A. ('A'/Negative) through its Vienna-based subsidiary UniCredit Bank Austria AG ('A'/Stable). ZAO Raiffeisenbank is almost 100% directly and indirectly owned by Raiffeisen Bank International AG ('A'/Stable). ZAO Citibank's regulatory capital ratio improved to a strong 24.5% at end-Q310 from 19% at end-2008, reflecting continued strong profitability. NPLs were a moderate 4.8% of gross loans at end- Q310. The bank continues to be locally funded by customer deposits, which accounted for 94% of liabilities at end-Q310 statutory accounts. At the same time, balance sheet liquidity remains high with liquid assets (up to 30 days) covering about 72% of customer deposits at end-Q310. The RWE on ZAO Citibank's Long-term IDR reflects the potential for the rating to be both downgraded and upgraded in the near-term. The rating could be upgraded if Russia's 'BBB+' Country Ceiling is upgraded, together with the sovereign 'BBB' Long-term IDRs, which are currently on Positive Outlook. The rating could be downgraded if Citigroup Inc's 'A+' Long-term IDR is downgraded to 'BBB+', which corresponds to Fitch's current assessment of Citigroup's stand-alone financial strength. Citigroup's Long-term IDR was placed on Rating Watch Negative on 22 October 2010. ZAO Citibank is 100%-owned by Citigroup. OJSC Nordea Bank's asset quality remained sound at end-H110, with NPLs a low 1.4%, while the Basel I tier 1 capital ratio was reported at a comfortable 21.2%. The bank's concentrated credit risk exposure is reduced by guarantees from its 100% owner, Nordea Bank AB, on 70% of the top 20 borrowers, and a majority of the loan book has been approved at the parent level. Dependence on parent funding is high. Absolut's Long-term IDR reflects potential support from its 95% shareholder, Belgian KBC Bank (rated 'A'/Stable), while the RWE reflects KBCB's intention to divest the bank. According to the restructuring plan approved by European Commission, KBCB is to sell Absolut by 2012, although that deadline may be postponed by up to three years if reasonable purchase offers are not received. Although KBCB has informed Fitch that it is not currently in negotiations with any specific potential buyer, the possibility remains that an investor may emerge in the short-term, which would trigger a reassessment of Absolut's ratings. The Individual Rating reflects substantial pressure on Absolut's asset quality, with NPLs at about 16% at end-H110 and a substantial 20% of the loan book restructured/rolled-over. Absolut expects a net loss for 2010 as a result of high credit costs, while the bank remains profitable on a pre-impairment level. The Basel I tier 1 ratio was 13.1% at end-H110, but will decrease if the bank reports losses in H210 as forecasted. At the same time, Fitch notes Absolut's solid liquidity position, supported by a contracting loan book, retail deposit growth and substantial parent funding (the latter equal to 54% of Absolut's liabilities at end-H110). The rating actions are: ZAO Raiffeisenbank -- Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook Positive -- Long-term local currency IDR: assigned at 'BBB+'; Outlook Positive -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support Rating: affirmed at '2' -- Senior unsecured debt: affirmed at 'BBB+'/F2 and at 'AAA(rus)' -- Senior unsecured upcoming RUB-denominated bonds: assigned Long-term 'BBB+ (exp)' and National Long-term 'AAA(rus)(exp)' -- Individual Rating: upgraded to 'C/D' from 'D' ZAO Unicredit Bank -- Long-term foreign and local currency IDRs: affirmed at 'BBB+'; Outlook Positive -- Short-term foreign and local currency IDRs: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support Rating: affirmed at '2' -- Individual Rating: upgraded to 'C/D' from 'D' ZAO Citibank -- Long-term foreign currency IDR 'BBB+' placed on RWE -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support Rating: affirmed at '2' -- Individual Rating: upgraded to 'C/D' from 'D' OJSC Nordea Bank -- Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook Positive -- Short-term foreign currency IDR: affirmed at 'F2' -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook Stable -- Support Rating: affirmed at '2' -- Individual Rating: upgraded to 'D' from 'D/E' Absolut Bank -- Long-term foreign currency IDR 'BB+'; RWE maintained -- Short-term foreign currency IDR: affirmed at 'B' -- National Long-term rating 'AA(rus)'; RWE maintained -- Support Rating '3'; RWE maintained -- Individual Rating: affirmed at 'D/E' RUSHYDRO FINANCE: Moody's Assigns 'Ba1' Rating to Senior Bonds -------------------------------------------------------------- Moody's Investors Service has assigned a definitive Ba1 senior unsecured bond rating to the RUB20 billion 7.875% Notes due 2015 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. The outlook is stable. Ratings Rationale The Ba1 rating assigned to the Notes is equivalent to RusHydro's corporate family rating, given that RusHydro Finance issued the Notes for the sole purpose of financing a loan to RusHydro and therefore Noteholders rely 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 rating and LGD assessment of LGD4 are based on the assumption that the Notes rank pari passu with other senior unsecured and unsubordinated financial indebtedness of RusHydro (apart from obligations mandatorily preferred by law). Moody's definitive rating on this debt obligation confirms the provisional rating assigned on October 11, 2010. Moody's rating rationale was set out in a press release issued on that date. 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). RUSHYDRO FINANCE: Fitch Assigns 'BB+' Rating to Loan Notes ---------------------------------------------------------- Fitch Ratings has assigned RusHydro Finance Limited's RUB20 billion, 7.875% coupon and five-year loan participation notes a final local currency senior unsecured 'BB+' rating. The LPNs have been issued on a limited recourse basis for the sole purpose of funding a loan by RusHydro Finance to JSC RusHydro. RusHydro Finance is a finance vehicle for RusHydro, the Russian hydro electricity generation company. Proceeds from the bonds are expected to be used by RusHydro for capital expenditure and general corporate purposes. RusHydro has Long-term local and foreign currency Issuer Default Ratings of 'BB+' with a Positive Outlook, and a National Long-term rating of 'AA(rus)' with a Positive Outlook. ===================== S W I T Z E R L A N D ===================== OMEGA CAPITAL: S&P Withdraws CCC+ (sf) Ratings on 2 Note Classes ---------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its credit ratings on Omega Capital Investments PLC's class B, C, and E notes series 17 and Thunderbird Investments PLC's class B, C, D, and E notes series 15. At the same time, S&P removed from CreditWatch positive the 'CCC+ (sf)' rating on Omega Capital Investments' class C notes series 17. The withdrawal follows BNP Paribas'--the arranger's--recent notification to us that the issuers had fully repurchased the notes. Ratings List Ratings Withdrawn Omega Capital Investments PLC CHF75 Million and EUR15 Million Secured Floating-Rate Notes Series 17 Rating ------ Class To From ----- -- ---- B NR CCC+ (sf) E NR B+ (sf) Thunderbird Investments PLC EUR10 Million and CHF85 million ABS/Crossway Secured Floating-Rate Notes Series 15 Rating ------ Class To From ----- -- ---- B NR B+ (sf) C NR B+ (sf) D NR B (sf) E NR B- (sf) Rating Removed From CreditWatch Positive and Withdrawn Omega Capital Investments PLC CHF75 Million and EUR15 Million Secured Floating-Rate Notes Series 17 Rating ------ Class To From ----- -- ---- C CCC+ (sf) CCC+ (sf)/Watch Pos NR CCC+ (sf) =========== T U R K E Y =========== YUKSEL INSAAT: Moody's Assigns (P)'B1' Rating to Senior Notes ------------------------------------------------------------- Moody's Investors Service assigned a (P)B1 rating/LGD4/50% to the proposed senior unsecured 5-year notes to be issued by Yuksel Insaat S.A. This rating assignment follows the rating action on October 25, when Moody's assigned B1 Corporate Family and Probability of Default Ratings to Yuksel. Ratings Rationale The senior unsecured notes are to refinance Yuksel's mainly secured, short term bank debt and for general corporate purposes. The notes will be unconditionally and irrevocably guaranteed on a pari-passu, senior unsecured basis by Yuksel's subsidiaries in the construction business, except Fiba Yuksel. Together with the issuer, these subsidiaries represent the majority (at least 80%) of the revenues, tangible assets and cash flows of the group. Pro forma the bond issuance the amount of secured debt will be below 10%. Moody's notes that although Yuksel has the option to use its permitted lien basket that allows the issue of up to US$ 40m of secured debt, the company has made representations in writing to Moody's not to use the secured debt headroom for funding of core assets. Any use of secured debt under this basket is expected to be for specific energy projects, in which Yuksel may participate. Notching between the CFR and bonds could be introduced in the future if Yuksel were to deviate from this intention. The last rating action on Yuksel was on October 25, 2010, when Moody's assigned B1 Corporate Family and Probability of Default Ratings to Yuksel. Yuksel Insaat A.S., with corporate headquarters in Ankara/Turkey, is among the ten largest construction companies in Turkey. Established in 1963 by the Sazak and Sert families, Yuksel has grown its revenue base from US$ 104 million in 2001 to US$ 720 million in 2009 based on non-consolidated figures. The company still has a strong foothold in Turkey, but has expanded into the MENA region as well as Central Asia over the past years to diversify its revenue streams. Yuksel is primarily focused on the infrastructure sector. YUKSEL INSAAT: Fitch Assigns 'B' Senior Unsecured Rating -------------------------------------------------------- Fitch Ratings has assigned Ankara-based construction company YUKSEL Insaat A.S. a Foreign Currency senior unsecured rating of 'B' and a Recovery Rating of 'RR4'. At the same time, Fitch has assigned YUKSEL's planned 2015 US$ senior notes an expected senior unsecured 'B' rating and a Recovery Rating of 'RR4' based on summary terms and conditions only. YUKSEL plans to use the proceeds to repay existing debt and for general corporate purposes. Fitch will assign the notes a final rating upon closure and the receipt of final documentation conforming to information already received. Fitch's senior unsecured debt rating assumes that the majority of the bond proceeds will be used to pay down senior secured debt to approximately US$20 million. On 25 October 2010 Fitch Ratings has assigned YUKSEL a Long-term foreign currency Issuer Default Rating of 'B' with Stable Outlook. The planned 2015 notes will be senior unsecured obligations of YUKSEL and will rank equally with all other senior unsecured obligations of YUKSEL. On a senior unsecured basis the notes will be unconditionally and irrevocably guaranteed on a joint and several basis by YUKSEL's subsidiaries engaged in the construction business (other than Fiba Yuksel Uluslararasi Proje Gelistirme A.S, which is in charge of the development of a major residential project in Istanbul). The notes include an optional redemption; change of control; limitations on indebtedness, liens, asset sales and dividends; and a merger and consolidation provision. YUKSEL's current debt is mainly composed of secured project financing and a revolving credit of short-term maturity. However, following the planned US$ bond issue and the repayment of the secured bank debt, most of the debt of the group will be on an unsecured basis (more than 90% of the total). =========================== U N I T E D K I N G D O M =========================== ARDEONAIG HOTEL: Placed Into Administration; Abandoned by Owner --------------------------------------------------------------- Ardeonaig Hotel has been placed into administration. Eilis Jordan at Business Sale Report relates that Ardeonaig Hotel has been placed on the market by the administrators at Zolfo Coopers with a price tag of GBP1.1 million. The report notes that its ten employees have all been made redundant. According to the report, the South African owner Pete Gottgens has reportedly left the hotel, having dropped all associations with it. The report notes Alan Creevy of Jones Lang LaSalle has been mandated with the task of selling the hotel, which is "really quite an exceptional property in a stunning location in the heart of Perthshire." The report relates that refurbishment undertaken in 2008 left the business with cashflow problems. It is believed an amount close to GBP2 million was spent, the report notes. The administrators, the report relates, are examining all the options for the hotel and are positive about finding a buyer. Anne O'Keefe of Zolfo Cooper, the report notes, said that the decision has been made to stop trading at the business for the winter months with the intention of resuming in the spring. The move will "ensure the viability of the business for prospective buyers," she added. Ardeonaig Hotel is located in Perthshire and owned by former personal chef to Nelson Mandela, Pete Gottgens. BAA PLC: Moody's Assigns (P)'Ba3' Rating to Senior Secured Notes ---------------------------------------------------------------- Moody's Investors Service has assigned a (P)Ba3 rating to the proposed issue of GBP Senior Secured Notes due 2017 to be issued by BAA (SH) plc. In addition Moody's has assigned a (P)Ba1 Corporate Family Rating, a (P)Ba2 Probability of Default Rating, and a 35% Family-wide loss given default assumption to BAA SH. Moody's has also assigned a LGD-5 (85%) Loss given default assessment to the BAA SH Notes. The rating outlook is stable. 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 definitive ratings to BAA SH. A definitive rating may differ from a provisional rating. These provisional ratings are assigned on the basis that the BAA SH Notes are issued, and together with the proceeds from a new BAA SH GBP250m bank loan facility, are used to repay all other outstanding debt of BAA SH. Ratings Rationale The (P)Ba1 Corporate Family Rating of BAA SH reflects a Probability of Default Rating of (P)Ba2 and a 35% Family-wide loss given default assumption. The Corporate Family Rating is an opinion of the BAA SH group's ability to honor its financial obligations and is assigned to BAA SH as if it had a single class of debt and a single consolidated legal structure. The (P)Ba3 / LGD-5(85%) rating of the BAA SH Notes reflects the structural subordination of the BAA SH Notes in the BAA SH group structure. The only asset of BAA SH is its shares in BAA (SP) Limited, which in turn owns London Heathrow Airport, and London Stansted Airport. The BAA SP group is financed via debt provided through a ring- fenced secured debt financing structure. BAA SP can only service debt at BAA SH if it complies with the financial terms of the BAA ring-fenced secured debt financing structure. BAA SH debt in turn benefits from a security interest in its ownership of BAA SP. BAA SH's (P)Ba1 Corporate Family Rating reflects (i) BAA SP's ownership of LHR, which is one of the world's most important hub airports and the largest European airport, (ii) the relatively resilient traffic characteristics of LHR which together with the STN traffic profile affords some portfolio benefits, (iii) the long established framework of economic regulation that pertains to LHR which will evidence some changes but which is not expected to be fundamentally altered, (iv) the significant capital expenditure program at LHR, (v) the debt levels carried by the BAA SH group together with the features of the BAA ring-fenced secured debt financing structure which puts certain constraints around management activity, and (vi) the protective features of the BAA SH Notes which effectively limits BAA SH's activities to its investment in BAA SP. The rating outlook is stable. This reflects Moody's expectation that BAA's London airports will see a modest recovery in business volumes, and that the capital expenditure program will continue to be managed effectively to accommodate the ramp up in work at LHR over the coming few years, both of which should ensure a financial profile in line with the current rating category. The outlook further assumes that BAA SP will continue to manage its debt raising program in a way that minimizes refinancing risk and allows it to comfortably meet new funding requirements. Although there is headroom under the BAA SH debt documentation to increase indebtedness at the BAA SH level, this is not expected to materialize over the time horizon of the rating. The Corporate Family Rating and rating of the BAA SH Notes could move up if the BAA SH group were to exhibit a financial profile that evidenced materially lower leverage than currently expected. This could be suggested by a Net Debt to RAB ratio likely to be permanently below 80% and an Adjusted Interest Cover Ratio of permanently more than 1.2 times. The Corporate Family Rating and rating of the BAA SH Notes could move down if the BAA SH group were to exhibit a financial profile that evidenced materially higher leverage than currently expected. This could be suggested by a Net Debt to RAB ratio consistently in the high 80s and an Adjusted Interest Cover Ratio of less than 1.0 times. A sale of Stansted Airport, if required, would not likely cause a downwards move in the rating. BAA PLC: Fitch Assigns 'BB+' Rating to Q1 2017 Notes ---------------------------------------------------- Fitch Ratings has assigned BAA (SH) plc's GBP250 million-GBP325 million notes, expected to be due Q1 2017, an expected rating of 'BB+' with Stable Outlook. The final rating is contingent on the receipt of final documents conforming to information already received. The expected rating addresses the ability of BAA (SH) to service and repay its senior secured debt, including the prospective bond via regular cash payments from BAA (SP) Limited (BAA (SP) or the OpCo). The rating reflects the subordinated position of BAA (SH) creditors below those of BAA (SP) and the reliance of BAA (SH) on cash distributions from its subsidiary, which could be halted in extreme circumstances. It also reflects the modest refinancing risk facing BAA (SH) at the bond's maturity date in 2017, and when the two tranches of its bank facility -- which rank equally with the notes -- reach maturity in one and five years respectively. Although BAA (SH) is confident it will be able to refinance the bank loan from surplus cash or by raising additional debt at the OpCo level, Fitch has also considered the scenario where the debt is refinanced at the HoldCo level. Fitch also considered in the analysis the robustness of passenger traffic (volume risk), as evidenced during the recent economic crisis by the strong resilience of Heathrow (90% of the company's revenue) as well as the Q310 traffic update for the airports. The agency further took into account the predictability of the tariff (price risk) provided by the regulatory framework in a context of strong market power for Heathrow. Other factors considered are the strong ability of the operator to manage operational and financial risks and the residual exposure to low inflation. Fitch has determined the rating using a consolidated analysis of BAA (SH) and BAA (SP). Most rating factors and analysis items are thus common with those implemented for BAA Funding, and the same metrics, with relevant levels of debt, were considered. In addition, Fitch paid specific attention to the structural features that could hamper the ability of BAA (SP) to upstream sufficient cash to BAA (SH) in order to service the rated debt given its effective subordination. Fitch has built a rating case, the outcome of which indicates that BAA (SP) has strong capacity, both in terms of cash flow and its ability to raise additional debt at OpCo level, to make cash distributions to BAA (SH) sufficiently large to comfortably service and to repay debt. It also suggests that the likelihood of a BAA (SP) level lock-up covenant being triggered, and therefore its cash payment to BAA (SH) being prevented, is low. BAA (SP)'s regulated airports -- Heathrow and Stansted -- have both seen falling passenger traffic over the last three years, although as expected, Heathrow has proven more resilient in this regard. Recent data suggests that passenger traffic at Heathrow has recovered and that, excluding the one-off effects of the volcanic ash cloud as well as prolonged airline industrial action earlier in the year, traffic at the regulated airports will be higher in 2010 compared with 2009. COAST TO COAST: Goes Into Administration ---------------------------------------- Coast to Coast (UK) Ltd, which traded as ED Truckin Road Haulage, has gone into administration. Roadtransport.com reports that Christopher White, of insolvency firm the P&A Partnership, was appointed administrator to the firm. Mr. White confirmed to Roadtransport.com that the business has ceased trading and its 40 employees had been made redundant. Mr. White, the report notes, added: "The business had been trading under a Company Voluntary Arrangement but we are now in the process of asset realization on behalf of creditors. I can confirm that any outstanding claims on behalf of employees are being handled by the Redundancy Payments Office." Headquartered in Kettering, Northants, Coast to Coast (UK) has been trading under a CVA since 1 December 2009 with the P&A Partnership handling the arrangement. The company was incorporated in 1998. CONWAY STEWART: Goes Into Administration ---------------------------------------- Conway Stewart and Company Ltd has gone into administration. The Herald reports that Conway Stewart applied to the High Court, in London, for an administration order earlier this month. According to the report, Wilmslow-based business rescue and recovery experts Cooper Williamson Ltd were appointed as administrators. Conway Stewart Thursday told The Herald it was now known under the name of Conway Stewart Manufacturing UK Ltd. Headquartered in Plymouth, Conway Stewart and Company Ltd is a luxury pen manufacturer. DUNDEE FOOTBALL CLUB: Rhys Weston Appeals for Leniency ------------------------------------------------------ Graeme Dey at The Courier reports that football player Rhys Weston has appealed to the SFL not to hammer Dundee football club for going into administration for the second time in seven years. According to the report, administrator Bryan Jackson will be grilled by the SFL board, with a decision on what punishment the Dark Blues are to face expected to be made public early next week. The report relates it is widely anticipated that a substantial points deduction -- up to 30 points -- is in the pipeline, effectively guaranteeing relegation to the second division. The report notes Mr. Weston reckons that would be harsh. "Hopefully the league will be lenient with us," the report quoted Mr. Weston as saying. "It is out of our control but it would be a shame if our season is effectively ended on Thursday because we've had so many points deducted. The fight is on to keep the club alive and the football is the main product so everyone will suffer. The fans, players and everyone involved with Dundee will be hurt. So, too, will be Scottish football. Apart from the Old Firm game, ours was the third biggest attendance at the weekend. The fans here have been through it before and they are rallying again. They don't deserve to be punished for something that was outside their control. The supporters have been through the mill on more than one occasion but I've seen them really pull together and show a lot of resolve in the face of adversity. All we can hope for is a decent outcome on Thursday and the fans sticking by us. If we were forced into a situation where it's going to be an uphill battle to stay in the league that would be very, very hard to take," he added. Dundee Football Club -- http://www.thedees.co.uk/-- is a Scottish football club. LOTHIAN MORTGAGE: S&P Affirms 'BB (sf)' Ratings on Class E Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its credit ratings on all classes of notes in Lothian Mortgage Master Trust PLC (Lothian Mortgages (No. 3) PLC, Lothian Mortgages (No. 4) PLC, and Lothian Mortgages Master Issuer PLC series 2006-1). The affirmations follow S&P's review of the collateral performance and current capital structure. In S&P's opinion, collateral performance is stable with low delinquencies and cumulative losses of EUR494,000. The collateral comprises 100% prime owner-occupied residential mortgages, with all borrowers on flexible products. Prepayments are high relative to other prime deals, reflecting the conservative underwriting standards. These factors have led us to affirm S&P's ratings on these notes. The credit enhancement for the class A notes increased to 11.04% in September 2010, from 8.85% in November 2007. During the same period, the credit enhancement for the class B notes increased to 7.94% from 6.54%; the class C notes increased to 4.93% from 4.19%; and the class D notes increased to 2.07% from 1.69%. The credit enhancement for the class E notes decreased to 1.04% from 1.29%, as a result of a reduction in the reserve fund to EUR17.50 million in September 2010 from EUR57.15 million in November 2007. However, this level of credit enhancement is still consummate with the current 'BB (sf)' rating on the class E notes. Lothian Mortgages Master Trust is a prime U.K. residential mortgage-backed securities program, securitizing loans originated by Standard Life Bank PLC (now part of Barclays Bank PLC). Ratings List Ratings Affirmed Lothian Mortgages (No. 3) PLC US$855.0 Million and EUR779.6 Million Residential Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A2 AAA (sf) B AA (sf) C A (sf) D BBB (sf) E BB (sf) Lothian Mortgages (No. 4) PLC US$390 Million, EUR691.8 Million, and EUR565 Million Residential Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A3 AAA (sf) B AA (sf) C A (sf) D BBB (sf) Lothian Mortgages Master Issuer PLC US$562.4 Million, EUR471.3 Million, and EUR377 Million Residential Mortgage-Backed Floating-Rate Notes Series 2006-1 Class Rating ----- ------ A2 AAA (sf) A3 AAA (sf) A4 AAA (sf) B AA (sf) C A (sf) D BBB (sf) E BB (sf) ROYAL BANK: Appoints Advisers for Insurance Unit Disposal --------------------------------------------------------- Kristy Dorsey at The Scotsman reports that Royal Bank of Scotland has appointed advisers to move ahead with the disposal of its insurance arm, which includes the Churchill, Direct Line, Privilege and Green Flag operations. According to The Scotsman, investment banks Goldman Sachs and Morgan Stanley have been awarded the mandate to review available options for the division, whose net asset value stands at about GBP4 billion. Bailout As reported by the Troubled Company Reporter-Europe on Aug. 26, 2010, Stephen Hester, Royal Bank of Scotland's chief executive, as cited by The Scotsman, said that the bank should not be given a second chance of a taxpayer bailout if it is involved in another financial crisis. In a bold admission that the public would not tolerate further handouts, Mr. Hester said all financial institutions -- including RBS -- should be allowed to fail and suffer the consequences without the state rushing to their aid, according to The Scotsman. The Scotsman disclosed Mr. Hester was drafted in when RBS sank under a mountain of debt after the meltdown that followed its disastrous takeover of the Dutch bank ABN Amro before the credit crunch. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed of its entire interest in Global Voice Group Ltd. SOUTHERN CARE: Conwy County Staff Fear for Futures -------------------------------------------------- Owen R. Hughes at North Wales Weekly News reports that Southern Care Group's workers are devastated with the news that the company is under administration and concerned at potential disruption to the elderly residents at the homes. As reported in the Troubled Company Europe on October 28, 2010, BBC News said that Southern Care Group has gone into administration, with administrator PKF running the group. BBC related joint administrator Jon Newell said the business, founded by Dylan Southern, had been "struggling to pay its liabilities" and overheads had been "inconsistent with the income stream". BBC noted Mr. Newell said that a number of inquiries had been made from potential buyers. According to North Wales Weekly News, administrators Kerry Bailey and Jonathan Newell, of PKF Accountants, said their intention was to keep all the homes open and ensure there was minimal disruption for residents. The report relates that they intend to sell the homes at a later date. The report notes an unnamed staff said: "People are also worried about what will happen to the elderly people in the homes, it isn't nice for them or their families." The nine care homes are: * Woodfold, Brompton Avenue, Rhos-on-Sea * Tandderwen, Holyrood Avenue, Old Colwyn * Priory Grange, Kenelm Road, Rhos-on-Sea * Rhoslan, Everard Road, Rhos-on-Sea * Southern House, Water Street, Abergele * Coed Duon, Halkyn Road, Holywell * Maes Elwy, Upper Denbigh Road, St Asaph * The White House, Grove Road, Wrexham * Beach Court, Beach Road West. The administrators have appointed Healthcare Management Solutions to assist them to operate the care homes, the report adds. North Wales-based Southern Care Group employs 270 people and cares for up to 300 elderly people. TARGETFOLLOW ESTATE: Owner Lashes Out at Lloyds ----------------------------------------------- Hugo Duncan at thisismoney.co.uk reports that the owner of the Centre Point tower in London accused Lloyds Banking Group of "wanton destruction of value" as it tumbled into administration. As reported in the Troubled Company Reporter Europe on October 28, 2010, Business Sale Report said that a GBP150 million cash injection does not seem to be enough to save Targetfollow from falling into administration. According to the report, the firm reportedly owes more than GBP700 million to Lloyds Banking Group. The report related that the bank is said to be unwilling to accept the investment cash -- GBP150 million from a "high-quality institutional consortium" -- and wants to press forward with a High Court hearing about possible administration procedures. According to thisismoney.co.uk, Ardeshir Naghshineh, founder and chairman of Targetfollow, lashed out after the part-nationalized bank pulled the plug over the debt and appointed Deloitte as administrator. The report relates Mr. Naghshineh claimed that Lloyds -- itself saved from collapse by a multi-billion pound bailout by the taxpayer -- damaged the value of the company and its properties by pursuing it so vigorously. The report notes Lloyds values Targetfollow's estate at just GBP450 million, while the company claims it is worth nearer GBP680 million. Mr. Naghshineh, the report notes, said: "Obviously we are disappointed at this turn of events because, as is widely understood in the property industry, myself and my expert team are the best people to extract full value from the portfolio. However, if the appointment of administrators stops the wanton destruction of value that has characterised the bank's interference over the past 12 months, then that will be a move in the right direction." The administration process, the report relates, was delayed for two weeks when Targetfollow asked for extra time to secure new investment in the company. But a court heard that Lloyds pulled the plug on the firm and Deloitte has been lined up to begin the administration process, the report adds. Targetfollow is a property developer based in the United Kingdom. =============== X X X X X X X X =============== * BOND PRICING: For the Week October 25 to October 29, 2010 ----------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- A-TEC INDUSTRIES 2.750 5/10/2014 EUR 74.50 RAIFF ZENTRALBK 4.500 9/28/2035 EUR 69.03 BELGIUM ------- FORTIS BANK 8.750 12/7/2010 EUR 20.54 FINLAND ------- MUNI FINANCE PLC 0.250 6/28/2040 CAD 23.99 MUNI FINANCE PLC 0.500 3/17/2025 CAD 55.48 MUNI FINANCE PLC 0.500 9/24/2020 CAD 70.72 MUNI FINANCE PLC 1.000 2/27/2018 AUD 66.53 MUNI FINANCE PLC 1.000 6/30/2017 ZAR 66.59 FRANCE ------ AIR FRANCE-KLM 4.970 4/1/2015 EUR 16.42 ALCATEL SA 4.750 1/1/2011 EUR 16.70 ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.55 ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 4.86 ATOS ORIGIN SA 2.500 1/1/2016 EUR 52.56 BNP PARIBAS 10.050 7/24/2012 USD 64.27 CALYON 6.000 6/18/2047 EUR 50.25 CAP GEMINI SOGET 1.000 1/1/2012 EUR 44.04 CAP GEMINI SOGET 3.500 1/1/2014 EUR 43.83 CLUB MEDITERRANE 6.110 11/1/2015 EUR 17.67 CLUB MEDITERRANE 4.375 11/1/2010 EUR 49.97 EURAZEO 6.250 6/10/2014 EUR 58.94 FAURECIA 4.500 1/1/2015 EUR 23.17 GROUPE VIAL 2.500 1/1/2014 EUR 20.78 MAUREL ET PROM 7.125 7/31/2015 EUR 13.60 MAUREL ET PROM 7.125 7/31/2014 EUR 16.28 NEXANS SA 4.000 1/1/2016 EUR 62.97 PEUGEOT SA 4.450 1/1/2016 EUR 34.08 PUBLICIS GROUPE 3.125 7/30/2014 EUR 38.88 PUBLICIS GROUPE 1.000 1/18/2018 EUR 48.68 RHODIA SA 0.500 1/1/2014 EUR 48.41 SOC AIR FRANCE 2.750 4/1/2020 EUR 21.51 SOITEC 6.250 9/9/2014 EUR 9.55 TEM 4.250 1/1/2015 EUR 55.72 THEOLIA 2.700 1/1/2041 EUR 11.87 VALEO 2.375 1/1/2011 EUR 47.11 ZLOMREX INT FIN 8.500 2/1/2014 EUR 63.88 ZLOMREX INT FIN 8.500 2/1/2014 EUR 63.88 GERMANY ------- DEUTSCHE BK LOND 0.500 8/25/2017 BRL 54.19 DEUTSCHE BK LOND 3.000 5/18/2012 CHF 65.00 ESCADA AG 7.500 4/1/2012 EUR 18.75 L-BANK FOERDERBK 0.500 5/10/2027 CAD 50.53 QIMONDA FINANCE 6.750 3/22/2013 USD 3.38 SOLON AG SOLAR 1.375 12/6/2012 EUR 37.52 GREECE ------ HELLENIC REP I/L 2.900 7/25/2025 EUR 53.65 HELLENIC REP I/L 2.300 7/25/2030 EUR 50.20 HELLENIC REPUB 6.140 4/14/2028 EUR 73.40 HELLENIC REPUB 5.000 3/11/2019 EUR 66.77 HELLENIC REPUB 5.000 8/22/2016 JPY 67.52 HELLENIC REPUB 5.250 2/1/2016 JPY 71.37 HELLENIC REPUB 5.200 7/17/2034 EUR 64.85 HELLENIC REPUBLI 4.300 7/20/2017 EUR 69.40 HELLENIC REPUBLI 3.600 7/20/2016 EUR 70.50 HELLENIC REPUBLI 3.700 7/20/2015 EUR 75.28 HELLENIC REPUBLI 5.300 3/20/2026 EUR 64.89 HELLENIC REPUBLI 4.600 9/20/2040 EUR 56.72 HELLENIC REPUBLI 4.500 9/20/2037 EUR 56.75 HELLENIC REPUBLI 4.700 3/20/2024 EUR 63.23 HELLENIC REPUBLI 6.250 6/19/2020 EUR 75.29 HELLENIC REPUBLI 6.000 7/19/2019 EUR 74.01 HELLENIC REPUBLI 4.600 7/20/2018 EUR 68.55 NATIONAL BK GREE 3.875 10/7/2016 EUR 75.73 IRELAND ------- AIB MORTGAGE BNK 5.000 3/1/2030 EUR 73.94 AIB MORTGAGE BNK 5.000 2/12/2030 EUR 73.98 ALLIED IRISH BKS 7.875 7/5/2023 GBP 73.04 ALLIED IRISH BKS 5.250 3/10/2025 GBP 60.73 ANGLO IRISH BANK 4.000 4/23/2018 EUR 72.83 BANK OF IRELAND 4.875 1/22/2018 GBP 82.24 BANK OF IRELAND 4.625 2/27/2019 EUR 76.06 DEPFA ACS BANK 5.125 3/16/2037 USD 75.03 DEPFA ACS BANK 4.900 8/24/2035 CAD 65.78 DEPFA ACS BANK 3.250 7/31/2031 CHF 74.98 DEPFA ACS BANK 0.500 3/3/2025 CAD 34.13 DEPFA ACS BANK 1.920 5/9/2020 JPY 74.54 DEPFA ACS BANK 5.125 3/16/2037 USD 75.66 IRISH LIFE & PER 4.625 5/9/2017 EUR 67.57 IRISH NATIONWIDE 13.000 8/12/2016 GBP 42.38 IRISH NATIONWIDE 5.500 1/10/2018 GBP 42.42 CITY OF TURIN 5.270 6/26/2038 EUR 71.83 ITALY ----- COMUNE DI MILANO 4.019 6/29/2035 EUR 73.82 LUXEMBOURG ---------- ARCELORMITTAL 7.250 4/1/2014 EUR 28.06 CRC BREEZE 5.290 5/8/2026 EUR 63.50 IIB LUXEMBOURG 11.000 2/19/2013 USD 60.00 INTL INDUST BANK 9.000 7/6/2011 EUR 15.75 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 53.23 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 52.75 NETHERLANDS ----------- APP INTL FINANCE 11.750 10/1/2005 USD 0.01 ARPENI PR INVEST 8.750 5/3/2013 USD 46.13 ARPENI PR INVEST 8.750 5/3/2013 USD 46.13 ASTANA FINANCE 7.875 6/8/2010 EUR 12.97 BK NED GEMEENTEN 0.500 2/24/2025 CAD 54.49 BRIT INSURANCE 6.625 12/9/2030 GBP 68.54 DGS INTL FIN BV 10.000 6/1/2007 USD 0.01 ELEC DE CAR FIN 8.500 4/10/2018 USD 55.66 INDAH KIAT INTL 12.500 6/15/2006 USD 0.01 IVG FINANCE BV 1.750 3/29/2017 EUR 74.41 NATL INVESTER BK 25.983 5/7/2029 EUR 31.81 NED WATERSCHAPBK 0.500 3/11/2025 CAD 55.13 RABOBANK 6.900 6/6/2017 RUB 92.24 SIDETUR FINANCE 10.000 4/20/2016 USD 69.00 TJIWI KIMIA FIN 13.250 8/1/2001 USD 0.01 NORWAY ------ EKSPORTFINANS 0.500 5/9/2030 CAD 43.81 KOMMUNALBANKEN 0.500 9/24/2014 BRL 70.57 POLAND ------ REP OF POLAND 2.648 3/29/2034 JPY 65.28 REP OF POLAND 3.300 6/16/2038 JPY 70.81 REP OF POLAND 3.220 8/4/2034 JPY 73.24 METRO DE LISBOA 4.061 12/4/2026 EUR 72.85 PORTUGAL -------- PARPUBLICA 3.567 9/22/2020 EUR 75.02 PORTUGUESE OT'S 4.100 4/15/2037 EUR 73.30 RUSSIA ------ ACBK-INVEST 8.000 4/14/2011 RUB 70.00 AGROKOM GROUP 10.000 6/21/2011 RUB 75.00 APK ARKADA 17.500 5/23/2012 RUB 0.38 ARKTEL-INVEST 12.000 4/9/2012 RUB 1.00 BANK SOYUZ 7.750 5/2/2011 RUB 75.00 BARENTSEV FINANS 20.000 7/4/2011 RUB 1.10 CHTPZ 8.000 4/21/2015 RUB 75.00 DVTG-FINANS 17.000 8/29/2013 RUB 9.03 EUROKOMMERZ 16.000 3/15/2011 RUB 0.01 FINANCEBUSINESSG 12.500 6/22/2011 RUB 75.00 FORTUM OJSC 7.600 2/6/2013 RUB 75.00 GLAVSTROY-FINANS 1.000 3/17/2011 RUB 75.00 GLOBEX BANK 9.250 2/16/2013 RUB 90.10 GRACE DIAMOND 15.000 6/7/2012 RUB 75.00 IART 12.000 8/4/2013 RUB 6.00 IAZS 11.000 12/8/2010 RUB 2.00 INPROM 9.500 5/18/2011 RUB 46.39 IZHAVTO 18.000 6/9/2011 RUB 11.31 LLC VICTORIA FIN 8.000 2/12/2013 RUB 75.00 LR-INVEST 13.750 7/17/2012 RUB 75.00 M-INDUSTRIYA 14.250 7/10/2013 RUB 2.11 M-INDUSTRIYA 12.250 8/16/2011 RUB 29.29 MACROMIR-FINANS 7.750 7/3/2012 RUB 0.50 MAIN ROAD OJSC 10.200 6/3/2011 RUB 75.00 MIG-FINANS 0.100 9/6/2011 RUB 1.61 MIRATORG-FINANS 11.000 8/2/2012 RUB 99.80 MIRAX 17.000 9/17/2012 RUB 26.00 MIRAX 14.990 5/17/2011 RUB 25.58 MOSKOMMERTSBANK 1.000 6/12/2013 RUB 75.00 MOSMART FINANS 0.010 4/12/2012 RUB 2.00 MOSOBLGAZ 12.000 5/17/2011 RUB 72.50 MOSOBLTRUSTINVES 20.000 3/26/2011 RUB 6.99 MY BANK 10.000 8/7/2012 RUB 75.00 NATIONAL CAPITAL 13.000 9/25/2012 RUB 75.00 NAUKA-SVYAZ 15.000 6/27/2013 RUB 75.00 NEW INVESTMENTS 12.000 7/7/2011 RUB 75.00 NOK 10.000 9/22/2011 RUB 1.01 NOK 12.500 8/26/2014 RUB 1.00 NUTRINVESTHOLDIN 11.000 6/30/2014 RUB 0.03 OBYEDINEONNYE KO 3.000 5/16/2012 RUB 100.00 OJSC FCB 11.000 8/7/2012 RUB 75.00 PROM TECH 16.000 4/25/2011 RUB 75.00 PROMNESTESERVICE 9.500 12/5/2014 RUB 75.00 RAF-LEASING 12.500 2/21/2012 RUB 75.00 RIATO 13.750 6/3/2013 RUB 75.00 ROSSELKHOZBANK 11.500 9/27/2017 RUB 75.00 RYBINSKKABEL 0.010 2/28/2012 RUB 0.50 SAHO 15.000 5/21/2012 RUB 14.00 SATURN 10.000 6/6/2014 RUB 1.00 SEVENTH CONTINE 9.250 6/14/2012 RUB 1.42 SEVKABEL-FINANS 10.500 3/27/2012 RUB 3.40 SIBUR 13.500 3/13/2015 RUB 75.00 SINERGIA 10.000 8/18/2014 RUB 75.00 SVOBODNY SOKOL 18.000 5/24/2011 RUB 40.01 TALIO-PRINCEPS 16.000 5/17/2012 RUB 75.00 TECHNONICOL-FINA 13.000 9/19/2013 RUB 75.00 TECHNONICOL-FINA 13.500 9/11/2013 RUB 75.00 TECHNONICOL-FINA 13.000 9/25/2013 RUB 75.00 TECHNOSILA-INVES 7.000 5/26/2011 RUB 0.01 TERNA-FINANS 1.000 11/4/2011 RUB 17.00 TGK-4 8.000 5/31/2012 RUB 75.01 TK FINANS 12.600 9/5/2011 RUB 75.00 TRANSNEFT 9.500 10/1/2019 RUB 75.00 UNITED HEAVY MAC 13.000 5/31/2013 RUB 75.00 URALELEKTROMED 8.250 2/28/2012 RUB 75.00 VESTER-FINANS 15.250 8/11/2011 RUB 3.11 VKM-LEASING FINA 1.000 5/18/2011 RUB 1.10 VLADPROMBANK 12.000 3/8/2011 RUB 75.00 VMK-FINANCE 16.000 5/21/2014 RUB 75.00 VTB-LEASING FINA 7.050 8/1/2017 RUB 100.05 YUGFINSERVICE 15.250 5/20/2014 RUB 75.00 ZAPSIBCOMBANK 11.000 9/15/2011 RUB 75.00 ZHILSOTSIPOTEKA- 9.000 7/26/2011 RUB 75.00 SPAIN ----- AYT CEDULAS CAJA 3.750 6/30/2025 EUR 71.35 BANCAJA 1.500 5/22/2018 EUR 64.19 BANCAJA EMI SA 2.755 5/11/2037 JPY 45.79 BANCO GUIPUZCOAN 1.500 4/18/2022 EUR 63.84 CAJA CASTIL-MAN 1.500 6/23/2021 EUR 56.43 CEDULAS TDA 6 3.875 5/23/2025 EUR 73.16 CEDULAS TDA A-5 4.250 3/28/2027 EUR 75.11 CEDULAS TDA A-6 4.250 4/10/2031 EUR 70.40 GENERAL DE ALQUI 2.750 8/20/2012 EUR 73.75 JUNTA LA MANCHA 3.875 1/31/2036 EUR 72.52 SWEDEN ------ SWEDISH EXP CRED 9.000 8/12/2011 USD 10.11 SWEDISH EXP CRED 9.000 8/28/2011 USD 9.56 SWEDISH EXP CRED 0.500 9/29/2015 BRL 64.31 SWITZERLAND ----------- UBS AG 13.300 5/23/2012 USD 4.07 UBS AG 10.580 6/29/2011 USD 38.41 UBS AG 14.000 5/23/2012 USD 8.83 UBS AG JERSEY 3.220 7/31/2012 EUR 53.39 UBS AG JERSEY 9.450 9/21/2011 USD 50.04 UBS AG JERSEY 9.350 9/21/2011 USD 64.71 UBS AG JERSEY 11.150 8/31/2011 USD 38.18 UBS AG JERSEY 10.360 8/19/2011 USD 52.57 UBS AG JERSEY 10.280 8/19/2011 USD 35.67 UBS AG JERSEY 11.030 4/21/2011 USD 20.51 UBS AG JERSEY 10.820 4/21/2011 USD 21.35 UBS AG JERSEY 12.800 2/28/2011 USD 34.09 UBS AG JERSEY 11.000 2/28/2011 USD 70.04 UBS AG JERSEY 15.250 2/11/2011 USD 11.63 UBS AG JERSEY 10.000 2/11/2011 USD 59.90 UBS AG JERSEY 16.170 1/31/2011 USD 12.80 UBS AG JERSEY 14.640 1/31/2011 USD 36.44 UBS AG JERSEY 13.900 1/31/2011 USD 34.29 UBS AG JERSEY 10.650 4/29/2011 USD 15.65 UNITED KINGDOM -------------- BANK OF SCOTLAND 6.984 2/7/2035 EUR 73.13 BARCLAYS BK PLC 8.550 1/23/2012 USD 11.54 BARCLAYS BK PLC 10.650 1/31/2012 USD 41.50 BARCLAYS BK PLC 12.950 4/20/2012 USD 24.40 BARCLAYS BK PLC 10.350 1/23/2012 USD 20.10 BARCLAYS BK PLC 7.610 6/30/2011 USD 52.99 BARCLAYS BK PLC 9.400 7/31/2012 USD 11.07 BARCLAYS BK PLC 10.800 7/31/2012 USD 27.21 BARCLAYS BK PLC 9.500 8/31/2012 USD 29.41 BARCLAYS BK PLC 13.800 5/27/2011 USD 52.08 BRADFORD&BIN BLD 5.500 1/15/2018 GBP 45.22 BRADFORD&BIN PLC 6.625 6/16/2023 GBP 45.88 BRADFORD&BIN PLC 7.625 2/16/2049 GBP 48.28 CO-OPERATIVE BNK 5.875 3/28/2033 GBP 75.12 EFG HELLAS PLC 5.400 11/2/2047 EUR 67.50 EFG HELLAS PLC 6.010 1/9/2036 EUR 34.25 ENTERPRISE INNS 6.375 9/26/2031 GBP 72.74 MAX PETROLEUM 6.750 9/8/2012 USD 63.76 NORTHERN ROCK 5.750 2/28/2017 GBP 75.93 PRINCIPALITY BLD 5.375 7/8/2016 GBP 69.95 PUNCH TAVERNS 6.468 4/15/2033 GBP 65.50 ROYAL BK SCOTLND 6.316 6/29/2030 EUR 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