TCREUR_Public/101111.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, November 11, 2010, Vol. 11, No. 223

                            Headlines



B U L G A R I A

* BULGARIA: NRA Seeks to Liquidate 64 Firms Over Tax Debt


G E R M A N Y

* GERMANY: Insolvencies Up 11.6% in August 2010


I C E L A N D

LANDSBANKI ISLANDS: Assets Will Cover 93% of Priority Claims


I R E L A N D

BACCHUS 2006-1: S&P Affirms 'CCC- (sf)' Rating on Class E Notes
BACCHUS 2006-2: S&P Affirms 'CCC- (sf) Rating on Class E Notes
IRISH NATIONWIDE: Subordinated Bonds Fall Amid Loss Concerns
PRECINCT INVESTMENTS: Pre-Tax Losses Widen to EUR39.8MM in 2008
* IRELAND: Nama's Strategy "Flawed", Construction Sector Says

* IRELAND: Hasn't Asked for Aid, EU Commissioner Olli Rehn Says
* IRELAND: Heads For Further Financial Woes, Economist Says
* IRELAND: Agencies Compete for Insolvencies


I T A L Y

TIRRENIA DI NAVIGAZIONE: Mediterranean Shipping Mulls Bid


N E T H E R L A N D S

EUROCREDIT CDO: S&P Raises Ratings on Various Classes of Notes
KPNQWEST NV: Ruling on Bankruptcy Probe Must Be Reconsidered


P O L A N D

TVN FINANCE: Moody's Assigns 'B1' Rating to EUR175 Mil. Notes
TVN SA: S&P Affirms 'B+' Long-Term Corporate Credit Rating


P O R T U G A L

BANCO ESPIRITO: Fitch Cuts Rating on Preference Shares to 'BB'
BANIF: Fitch Downgrades Rating on Preference Shares to 'BB'


S W E D E N

* SWEDEN: Corporate Bankruptcies Up 1% in October 2010


T U R K E Y

* Moody's Assigns 'Ba2' Ratings to Municipality of Izmir


U N I T E D   K I N G D O M

CORSAIR NO 4: Moody's Junks Ratings on Credit-Linked Notes
NATIONAL BANK: Fitch Affirms LT Issuer Default Rating at 'BB+'
ROK PLC: Projects on Hold as Talks Start With Suitors
ROK PLC: PricewaterhouseCoopers Receives 100++ Interests


X X X X X X X X

* EUROPE: Bruegel Proposes Court-Supervised Debt Restructuring
* EUROPE: Private Creditors Must Take Part in EU Debt Mechanism

* Upcoming Meetings, Conferences and Seminars




                            *********


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


* BULGARIA: NRA Seeks to Liquidate 64 Firms Over Tax Debt
---------------------------------------------------------
The Sofia Echo reports that Bulgaria's National Revenue Agency has
called for the liquidation of 64 companies that have repeatedly
failed or chosen to ignore calls to pay overdue taxes.

The Sofia Echo relates NRA said that about 93 million leva were
owed by a number of firms who have systematically ignored all
attempts to pay their taxes and mandatory benefits contributions
to the state or debts to other creditors.  According to The Sofia
Echo, the law empowers NRA to seek legal action against companies
that dodge their obligations, and have them closed from doing
business.

The Sofia Echo says companies that are heavily indebted and file
for bankruptcy will be then handled by the court.  The latter will
subsequently impose a lien on all of their property and assets
which will then be sold and distributed to creditors.

According to The Sofia Echo, the NRA also said that managers and
owners of companies that were currently in debt would be banned
from setting up new business ventures in the future.  Moreover,
The Sofia Echo notes, a trader who becomes insolvent and fails to
declare his condition in court within 30 days could be facing
imprisonment of up to three years and a fine of up to 5000 leva,
as recommended by the NRA.


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


* GERMANY: Insolvencies Up 11.6% in August 2010
-----------------------------------------------
The Federal Statistical Office said German insolvency courts
reported 14,372 insolvencies in August 2010; 2,660 of them
referred to enterprises and 9,543 to consumers.  The total number
of insolvencies increased 11.6% compared with August 2009,
enterprise insolvencies increased 1.6% and insolvencies of
consumers increased 21.4%.

From January to August 2010, 113,305 insolvencies (+6.0%) were
registered, 21,888 of which were enterprise insolvencies (+0.4%).
Altogether the courts registered 72,751 consumer insolvencies,
which were 10.7% more than in the same months one year earlier.


=============
I C E L A N D
=============


LANDSBANKI ISLANDS: Assets Will Cover 93% of Priority Claims
------------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that Landsbanki
Islands hf on Tuesday said in an e-mailed statement that its
assets will probably cover 93% of priority claims against it.

According to Bloomberg, Landsbanki said the estimate follows an
increase in the bank's recovery rate last quarter.

                    About Landsbanki Islands

Landsbanki Islands hf, also commonly known as Landsbankinn in
Iceland, is an Icelandic bank.  The bank offered online savings
accounts under the "Icesave" brand.  On October 7, 2008, the
Icelandic Financial Supervisory Authority took control of
Landsbanki and two other major banks.

Landsbanki filed for Chapter 15 protection on Dec. 9, 2008 (Bankr.
S.D. N.Y. Case No.: 08-14921).  Gary S. Lee, Esq., at Morrison &
Foerster LLP, represents the Debtor.  When it filed for protection
from its creditors, it listed assets and debts of more than
US$1 billion each.


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


BACCHUS 2006-1: S&P Affirms 'CCC- (sf)' Rating on Class E Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
BACCHUS 2006-1 PLC's class A-1A, A-2A, A-2B, B, and C notes.  At
the same time, S&P affirmed its ratings on the class D and E
notes.

The rating actions follow S&P's observations of an increased
balance of performing assets in the transaction, due to
restructurings of previously defaulted assets.

S&P has also observed an increase in the recovery prospects of the
portfolio (expressed as a weighted-average recovery rate).  There
has been a reduction in the gross level of defaults expected on
the portfolio over the life of the transaction, due to a reduction
in the weighted-average life of the transaction.  The weighted-
average spread of the transaction has also increased.

Finally, S&P has also noted an increase in the credit enhancement
in BACCHUS 2006-1 since S&P last took rating action on the
transaction in December 2009.  This is due to an increase in
performing assets, as mentioned above, and a deleveraging of the
transaction.

Despite some concerns about the level of assets in the portfolio
rated in the 'CCC' category ('CCC+', 'CCC', and 'CCC-'), S&P
considers the increased credit enhancement available to the class
A, B, and C notes to be commensurate with higher ratings than
previously assigned.  S&P has therefore raised its ratings on
these classes.

BACCHUS 2006-1 is a cash flow CLO transaction that securitizes
loans to primarily speculative-grade corporate firms.

                          Ratings List

                       BACCHUS 2006-1 PLC
EUR400 Million Senior Secured and Deferrable Floating-Rate Notes

                         Ratings Raised

                                 Rating
                                 ------
            Class           To              From
            -----           --              ----
            A-1A            AA- (sf)        A+ (sf)
            A-2A            AA+ (sf)        A+ (sf)
            A-2B            AA- (sf)        A- (sf)
            B               BBB+ (sf)       BB+ (sf)
            C               B+ (sf)         CCC+ (sf)

                        Ratings Affirmed

                    Class           Rating
                    -----           ------
                    D               CCC- (sf)
                    E               CCC- (sf)


BACCHUS 2006-2: S&P Affirms 'CCC- (sf) Rating on Class E Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
BACCHUS 2006-2 PLC's class A-1, A-2A, A-2B, B, C, and D notes.  At
the same time, S&P affirmed its rating on the class E notes.

The rating actions follow S&P's observations of an increased
balance of performing assets in the transaction, due to
restructurings of previously defaulted assets.

There has been a reduction in the gross level of defaults expected
on the portfolio over the life of the transaction due to a
reduction in the weighted-average life of the transaction.  The
weighted-average spread of the transaction has also increased.

Finally, S&P has also noted an increase in the credit enhancement
in BACCHUS 2006-2 since S&P last took rating action on the
transaction in December 2009.  This is due to an increase in
performing assets, as mentioned above, and a deleveraging of the
transaction.

Despite some concerns about the level of assets in the portfolio
rated in the 'CCC' category ('CCC+', 'CCC', and 'CCC-') in the
portfolio, S&P considers the increased credit enhancement
available to the class A, B, C, and D notes to be commensurate
with higher ratings than previously assigned.  S&P has therefore
raised its ratings on these classes.

BACCHUS 2006-2 is a cash flow CLO transaction that securitizes
loans to primarily speculative-grade corporate firms.

                           Ratings List

                       BACCHUS 2006-2 PLC
               EUR491.21 Million Senior Secured And
                  Deferrable Floating-Rate Notes

                         Ratings Raised

                                  Rating
                                  ------
            Class           To              From
            -----           --              ----
            A-1             AA- (sf)        A+ (sf)
            A-2A            AA+ (sf)        A+ (sf)
            A-2B            AA- (sf)        BBB+ (sf)
            B               BBB+ (sf)       BB+ (sf)
            C               BB+ (sf)        CCC- (sf)
            D               B (sf)          CCC- (sf)

                         Rating Affirmed

                    Class           Rating
                    -----           ------
                    E               CCC- (sf)


IRISH NATIONWIDE: Subordinated Bonds Fall Amid Loss Concerns
------------------------------------------------------------
John Glover at Bloomberg News reports that Irish Nationwide
Building Society's subordinated bonds fell as the prospect of a
court battle with investors spurred loss concerns.

Bloomberg relates the lender's EUR126 million (US$175 million) of
13% lower Tier 2 bonds were quoted at 25 cents on the euro by
Jefferies International Ltd. on Tuesday, Nov. 9, down from 32
cents on Thursday, Nov. 4.

Satin Finance Sarl and Trimast Holding Sarl started proceedings
against the lender and BNP Paribas Trust Corp., the trustee for
its subordinated bonds, in the English courts last week, Bloomberg
relates.

The lender's EUR598 million of senior floating-rate notes due June
2012 declined for a second day, falling 0.75 cent to 78.5 euros,
close to the record low level of 77.75 reached in September,
pricing data compiled by Bloomberg show.

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

                           *     *     *

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


PRECINCT INVESTMENTS: Pre-Tax Losses Widen to EUR39.8MM in 2008
---------------------------------------------------------------
Precinct Investments's pre-tax losses widened to EUR39.8 million
in 2008 from EUR4 million in 2007 as the firm incurred a massive
property devaluation in the period, John Mulligan at Irish
Independent reports, citing new accounts filed for the business.

According to Irish Independent, gross profit at the group fell 33%
in 2008 to just under EUR11 million, while turnover was down
nearly 23% to slightly below EUR23 million.  The accounts also
note that the hotel group has notched up a further EUR7 million
loss in 2009, Irish Independent states.

The value of the three hotels in the group at the end of 2008 was
slashed by more than a third -- from EUR177.7 million in December
2007 to EUR107.4 million at the end of 2008, although property
firm CB Richard Ellis Gunne revalued them again at the end of 2009
at EUR116.4 million, the report relates.

Irish Independent says the financial statements also acknowledge
that the group has incurred "significant losses and cash outflows
due to a high level of debt and asset revaluations".  They warn
that its bank facilities -- which are held with Anglo Irish Bank
and Bank of Ireland -- all have to be renegotiated by the end of
this year, Irish Independent notes.

"The directors would highlight that the asset disposals form a
central part of the strategic plan of the group to restructure its
financing and there is no guarantee that future funding will be
available on commercially acceptable basis or at all," according
to the accounts, Irish Independent discloses.

Precinct Investments is solely owned by builder Bryan Cullen and
the company was used to take the Gresham Hotel group private in
2004 in a EUR117 million deal.


* IRELAND: Nama's Strategy "Flawed", Construction Sector Says
-------------------------------------------------------------
Ciaran Hancock and Simon Carswell at The Irish Times report that
the Construction Industry Federation told the board of the
National Asset Management Agency (Nama) last month that its EUR5
billion working capital facility was "inadequate" to "manage [out]
or improve" the EUR74 billion in distressed property assets that
have been transferred from Irish-owned banks.

In a hard-hitting presentation, made to the board of Nama on
October 7 and seen by The Irish Times, the federation added that
"most borrowers now believe Nama to be a massive liquidation
vehicle".

"Nama sees itself as liquidator more than as an asset manager,"
the federation stated in the presentation to Nama's board, which
is chaired by Frank Daly, according to The Irish Times.

The Irish Times relates the federation argued that the Nama
process had "decimated banks' balance sheets through excessive
writedowns and will do likewise for borrower/developers".  The
Irish Times notes it said Nama's short-term business strategy was
"inherently flawed" because of a lack of market.  It argued that a
25 per cent reduction in three years would fuel a "vicious cycle"
and said planned firesales would further depress the market and
result in more defaults, according to The Irish Times.  It called
for Nama to "optimize returns" in the medium term rather than the
short term, The Irish Times discloses.

The Irish Times relates the federation also pressed for "viable
projects" to be "developed to completion as quickly as possible".

"If Nama thinks there should be no new building for the next
decade, it will be too late for Ireland when Nama realizes that
this was a mistake," it stated, according to The Irish Times.

The Irish Times notes the board of Nama was also told the agency
was "ill equipped" to manage the assets, or even "bank supervise"
them and this must be "urgently addressed".

The presentation was made by federation chief Tom Parlon and
Hubert Fitzpatrick, its director of development, housing and
planning, The Irish Times discloses.  The federation has
commissioned Lombard Street Research to prepare a report on Nama
and its operations, The Irish Times says.

This will include a view on targets set out in Nama's business
plan, the adequacy of the EUR5 billion working capital facility,
and impediments to the future work-out of viable assets, The Irish
Times discloses.  The report is expected to be submitted to the
federation within weeks, The Irish Times states.


* IRELAND: Hasn't Asked for Aid, EU Commissioner Olli Rehn Says
---------------------------------------------------------------
Joe Brennan and Finbarr Flynn at Bloomberg News report that
European Union Economic and Monetary Affairs Commissioner Olli
Rehn said Ireland hasn't asked for aid as investors dump the
government's bonds on concern that the cost of bailing out its
banks may bankrupt the nation.

"I can only say that Ireland has not requested the activation of
any European financial backstops," said Mr. Rehn at a press
conference in Dublin late Monday, according to Bloomberg.  He
indicated that Ireland may have to abandon the tax policies that
helped foster its decade-long economic boom, reiterating that the
country couldn't continue as a "low-tax" economy, Bloomberg notes.

Bloomberg says Ireland is struggling to convince investors it can
avoid a rescue as the nation's finances buckle under the weight of
saving Anglo Irish Bank Corp.

While Ireland is fully funded until the middle of next year, the
yield on Irish 10-year government bonds nevertheless rose above 8
percent on Monday for the first time since the country joined the
euro in 1999, Bloomberg relates.  That pushed the premium that
investors demand to hold Irish debt over German bunds to a record
547 basis points, Bloomberg discloses.

Mr. Rehn, as cited by Bloomberg, said he backed the government's
plan to narrow the deficit by EUR6 billion (US$8.4 billion) next
year, and the state should be given space to formulate its four-
year plan to fix the shortfall.


* IRELAND: Heads For Further Financial Woes, Economist Says
-----------------------------------------------------------
InsideIreland.ie reports that UCD economist Morgan Kelly said
Ireland is insolvent and headed for further financial woes due to
burgeoning difficulties in the mortgage sector.

Writing in the Irish Times Mr. Kelly said that national insolvency
caused by banks' bad debts will worsen as the mortgage market is
likely to collapse, according to InsideIreland.ie.

According to InsideIreland.ie, Mr. Kelly wrote that the government
commitments to bail out banks have meant billions of euros are
being poured into Anglo Irish Bank, AIB and Bank of Ireland, a
policy which the country can simply not afford.

InsideIreland.ie says Mr. Kelly predicted that the final cost of
bailing out AIB could be EUR26 billion, almost as much as Anglo
Irish, with the price tag for Bank of Ireland at EUR16 billion.

Mr. Kelly, according to InsideIreland.ie, stated that the amount
being spent on bank debts, EUR70 billion, far outweighs the EUR15
billion in savings planned by the government between now and 2014.

Mr. Kelly suggested that without this huge deficit from the banks,
the government could stablilise the economy within four years.  If
the government keeps paying for failing banks then there is no end
in sight to Ireland's bankruptcy, InsideIreland.ie adds.

InsideIreland.ie notes Mr. Kelly said that the next thing to hit
the banks' funds will be mortgages, with one in eight not meeting
original payment conditions, statistics that are set to worsen.


* IRELAND: Agencies Compete for Insolvencies
--------------------------------------------
The Irish Times reports that two Dublin-based estate agencies are
to go into direct competition with insolvency accountants to
handle the ever-increasing number of properties going into
receivership. The report relates that the agencies are in the
process of setting up individual insolvency divisions to manage
non-performing property assets while a strategy is agreed to
realize their maximum value.

According to The Irish Times, commercial agent HWBC has formed a
50:50 joint venture company with UK agent Allsop to offer fixed-
charge receivership in the Republic; while Dublin-based Colliers
International is launching a similar service to that already
provided by its parent company and its Belfast office.  The report
notes that a third agency is also understood to be gearing up to
offer a fixed-charge receivership in the Irish market.

The Irish Times notes that all three contend that the new service
will greatly reduce costs for banks and other lending institutions
putting properties into receivership.  A large number of
residential and commercial properties as well as development sites
are already in receivership and a great many more are in serious
trouble after falling heavily in value because of the collapse of
the property market and the turmoil in the banking sector, the
report discloses.

Meanwhile, the Irish Times relates, the newly formed HWBC Allsop
company said it has already secured its first instructions from a
number of different financial institutions.  They were currently
devising a strategy for the various properties and were preparing
reports and their initial advices, the report notes.

The Irish Times reports that they had yet to meet with all the
financial institutions and to date had generally confined meeting
with those companies who knew and used Allsops in the UK.

Simon Davidson, director of HWBC Allsop, said that over the past
year its UK team had seen a considerable increase in demand for
receivers with property expertise as lenders needed to release the
maximum potential of the assets in a cost-effective manner, The
Irish Times says.

The Irish Times relates that the new partnership in Ireland was
providing both property receivership and management service under
one roof.  Up to now fixed-charge receivers in Ireland had
historically come from accountancy backgrounds, the report adds.


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


TIRRENIA DI NAVIGAZIONE: Mediterranean Shipping Mulls Bid
---------------------------------------------------------
Andrew Davis at Bloomberg News, citing Il Sole 24 Ore, reports
that Italian-Swiss shipping company Mediterranean Shipping Co.
plans to bid for Tirrenia di Navigazione SpA.

According to Bloomberg, MSC founder Gianluigi Aponte told Il Sole
that MSC will make the bid through Grandi Navi Veloci SpA, a
company in which it bought a 50% stake this year.

As reported by the Troubled Company Reporter-Europe on Aug. 16,
2010, Bloomberg News said that a Rome judge on Aug. 12 declared
Tirrenia insolvent, the first step toward placing the company
under state administration.  Bloomberg disclosed Italy failed this
month to sell Tirrenia and on Aug. 5 approved "emergency financial
provisions" to help guarantee ferry services.  The sale was pulled
after the government did not reach a final agreement with bidder
Mediterranea Holding, according to Bloomberg.  Bloomberg noted
Rome newspaper la Repubblica, citing Nicola Coccia, a Mediterranea
shareholder, reported Mediterranea might team up with other
operators such as Moby SpA and Grandi Navi Veloci SpA to make a
new offer for Tirrenia.  Uil Trasporti, as cited by Bloomberg,
said it might appeal the ruling and would fight against the state-
owned company's breakup.

Tirrenia di Navigazione SpA, founded in 1936, runs passenger and
cargo ships linking the mainland with islands Sardinia, Sicily and
Corsica as well as Albania.


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


EUROCREDIT CDO: S&P Raises Ratings on Various Classes of Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Eurocredit CDO III B.V.'s class A, B, C, D, E, and R (Combo)
notes.  At the same time, S&P withdrew its rating on the class S
combination notes.

Since S&P last took rating action on Eurocredit CDO III in
December 2009, S&P has observed improvements in the performance of
the transaction, notably an increase in the credit enhancement for
all notes.  The transaction is past its reinvestment period and
principal proceeds are used to redeem the notes in sequential
order on payment dates.  In S&P's opinion, the improvement in
credit enhancement is due to two main factors: The amortization of
the class A notes using principal proceeds, and the diversion of
interest proceeds to cure the breach of the class E par-value
test.

In S&P's view, the increase in credit enhancement for the class A,
B, C, D, and E notes is commensurate with higher ratings than
those currently assigned, and S&P has therefore raised its ratings
on these classes.

As reported in recent transaction reports, the class E par-value
test is currently in breach.  As a result, there have been no
distributions to the subordinated class M notes, which form part
of the class R combination notes.  However, S&P's cash flow
analysis shows it is likely that the rated balances of class R
will be repaid if the class C-2 rated component ultimately repays
in full.  S&P has therefore raised its rating on the class R notes
to 'BB+' from 'BB-', in line with the rating on the class C-2
notes.

The trustee has recently informed us that the class S combination
notes were split into their component parts earlier this year.  In
S&P's opinion, combination note ratings are therefore no longer
applicable to these classes.  Therefore, S&P has withdrawn its
ratings on the class S combination notes.

Eurocredit CDO III is a cash flow collateralized loan obligation
securitizing a pool of loans to primarily speculative-grade
corporate firms.  The transaction closed in September 2003 and is
managed by Intermediate Capital Managers Ltd.

                           Ratings List

                     Eurocredit CDO III B.V.
EUR231.3 Million Fixed- & Floating-Rate Notes And Accreting Notes

                          Ratings Raised

                                Rating
                                ------
              Class       To               From
              -----       --               ----
              A-1         AA+ (sf)         AA- (sf)
              A-2         AA+ (sf)         AA- (sf)
              B           A+ (sf)          BBB+ (sf)
              C-1         BB+ (sf)         BB- (sf)
              C-2         BB+ (sf)         BB- (sf)
              D-1         B+ (sf)          CCC- (sf)
              D-2         B+ (sf)          CCC- (sf)
              E-1         B- (sf)          CCC- (sf)
              E-2         B- (sf)          CCC- (sf)
              R (Combo)   BB+ (sf)         BB- (sf)

                        Rating Withdrawn

                                Rating
                                ------
              Class       To               From
              -----       --               ----
              S (Combo)   NR               CCC- (sf)

                         NR -- Not rated.


KPNQWEST NV: Ruling on Bankruptcy Probe Must Be Reconsidered
------------------------------------------------------------
Martijn van der Starre at Bloomberg News reports that an adviser
to the Dutch Supreme Court said in an advisory opinion published
by Dutch investor group VEB on Tuesday that the Supreme Court
should order the Amsterdam Court of Appeal's Enterprise Chamber to
reconsider its refusal to end an inquiry into KPNQwest NV's 2002
bankruptcy.

Bloomberg relates the Enterprise Chamber turned down a request by
VEB to halt the probe earlier this year.

As reported by the Troubled Company Reporter-Europe on Oct. 1,
2010, Bloomberg News said that Qwest Communications International
Inc., Royal KPN NV and 12 executives were sued by KPNQwest's
administrators over the company's 2002 bankruptcy and EUR4.2
billion (US$5.7 billion) of unpaid debt.  Bloomberg disclosed
KPNQwest's court appointed administrators at law firm Houthoff
Buruma said in an e-mailed statement that the defendants have to
appear Jan. 19 in a district court in the Dutch city of Haarlem.
They said the administrators hold the companies and executives
responsible for the bankruptcy, according to Bloomberg.  KPNQwest
was declared bankrupt in 2002 after building a 60-city phone and
Internet network just before prices for telecommunications
services collapsed, Bloomberg said.  The administrators, as cited
by Bloomberg, said the company didn't change strategy and tripled
its investments in the network, even though market prices had
fallen by as much as 80% by 1999, the year KPNQwest was founded.

KPNQwest NV is a joint venture of Royal KPN NV and Qwest
Communications International Inc.


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


TVN FINANCE: Moody's Assigns 'B1' Rating to EUR175 Mil. Notes
-------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1 rating
to the proposed EUR175 million senior unsecured notes due 2018 to
be issued by TVN Finance Corporation III AB, a wholly owned
finance subsidiary of TVN S.A.  TVN's corporate family rating is
B1, with a stable outlook.

Moody's understands that TVN intends to use the proceeds from the
notes to (i) repay outstanding amounts under the PLN500 million
unsecured bonds due in June 2013 and (ii) collateralize
outstanding amounts under its PLN200 million loan facility,
currently used for guarantee purposes, with the proceeds from the
new notes.  The company has stated in its prospectus that (i) it
intends to keep the portion of funds to be used to repay the PLN
notes in separate accounts until the earliest call date, expected
to be 14 June 2011; and (ii) the loan facility will be cancelled.

                        Ratings Rationale

The (P)B1 rating on the new notes -- in line with the CFR --
reflects their unsecured position within TVN's capital structure,
as well as their pari passu ranking with TVN's existing senior
unsecured notes due in 2017.  Both the new and existing notes will
share the same guarantee and covenant package.  As of 30 September
2010, the guarantor group represented at least 90% of TVN's
EBITDA, net income and assets.

Subsequent to the transaction TVN's capital structure will consist
of an all-bond structure and the group will be subject to, among
other restrictions, an incurrence-based covenant restriction at
5.5x consolidated debt/EBITDA and associated carve-outs, including
a general basket not to exceed EUR75 million.  The B1 CFR of TVN
incorporates Moody's expectation that TVN will not take advantage
of its flexibility with regard to debt incurrence, as the group
currently benefits from a relatively good level of liquidity and
cash on the balance sheet.  Moody's expects TVN's dividend policy
to remain between 30% and 50% of annual net profits and any
acquisitions to be of an add-on nature going forward.  The B1 CFR
is also cognizant of the fact that TVN is a publicly listed
company, majority owned and controlled by the ITI Group, itself
holding a meaningful amount of external debt.

TVN has demonstrated success in further diversifying its revenue
base, from TV advertising and carriage fees from the production of
TV content into subscription-based revenues from pay TV, thanks to
its acquisition of the DTH satellite platform "n".  In addition,
the group has slightly improved its already strong market position
in the Polish TV market.  However, the B1 CFR continues to
incorporate the evolution of TVN's business risk as a result of
the acquisition of "n", which remains in the early stages of
development.  Moody's notes that "n" has made good progress and
exceeded TVN's expectations in terms of subscriber acquisitions as
well as revenue and EBITDA performance.  However, the rating
agency also understands that "n" is expected to remain a negative
contributor to the group in terms of cash flow generation for
2010.

Moody's notes that TVN's financial profile has improved in 2010 as
the TV advertising market has shown signs of stabilization and
recovery.  The stable outlook reflects Moody's expectation that
TVN will gradually return to sustainable positive free cash flow
generation -- having taken into account the company's current
dividend policy of distributing 30% of net profits -- as the
market continues to recover, "n" gradually becomes EBITDA
breakeven and improves its cash flow profile.

A return to sustainable free cash flow generation, combined with
leverage falling sustainably below 4.5x, could exert positive
pressure on the rating of TVN.  However, Moody's notes that with
all of TVN's debt now denominated in euros, the group remains
exposed to adverse currency movements, potentially constraining
positive pressure on its rating.

Negative pressure could be exerted on the rating as a result of a
deterioration in TVN's operating performance, leading to an
increase in leverage, such that the group's debt/EBITDA ratio
moves above 5.5x.

Moody's previous rating action on TVN was implemented on 26 April
2010, when a B1 rating was assigned to TVN Finance Corporation II
A.B.'s senior notes worth approximately EUR148 million and due in
2017, issued to the parent company of TVN S.A., ITI Group, in
March 2010.

Headquartered in Warsaw, TVN is one of the leading television
broadcasters in Poland.  The company also owns and operates
Poland's leading internet portal, Onet.pl, and Pay-TV DTH operator
"n".  In the nine months to 30 September 2010, the company
reported net revenues of approximately PLN1.7 billion and EBITDA
of PLN425 million.  TVN is publicly listed in the Warsaw Stock
Exchange, majority owned -- with 56.45% interest -- and controlled
by the ITI Group.


TVN SA: S&P Affirms 'B+' Long-Term Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on Poland-based private TV broadcaster TVN
S.A.  The outlook is stable.

At the same time, S&P affirmed its 'B+' issue rating on the
existing cumulative EUR593 million senior unsecured notes due
2017, issued by TVN Finance Corporation II AB.  Simultaneously,
S&P assigned its 'B+' issue rating to the proposed EUR175 million
senior unsecured notes issued by TVN Finance Corporation III AB, a
wholly owned subsidiary of TVN.

The affirmation follows TVN's launch of the proposed EUR175
million (approximately Polish zloty [PLN] 698 million) senior
unsecured notes at TVN Finance Corporation III.  TVN plans to use
about EUR127.9 million of the proceeds to repay the PLN500 million
existing senior unsecured notes due 2013 and to free up EUR8
million of bank guarantees and EUR28.3 million of the PLN200
million revolving credit facility (RCF).  The RCF will be
cancelled once the current refinancing is completed.  After
payments of EUR4.5 million in transaction costs, the remaining
EUR6.3 million from the proposed notes will shore up TVN's
liquidity.  "In S&P's view, the refinancing boosts the group's
maturity profile, leaving TVN with no debt due until 2017," said
Standard & Poor's credit analyst Patrizia D'Amico.

The rating on TVN remains constrained by the group's high leverage
following last year's agreement to raise its ownership of the
direct-to-home platform "n" to 100% from 51%, and by TVN's
exposure to cyclical advertising revenues within a single country,
Poland.  Assuming that the refinancing takes place in 2010, S&P
anticipate that the group's adjusted debt-to-EBITDA ratio could
decline to about 5.0x by the end of 2010, from 5.6x in 2009,
supported by a recovery in the TV advertising markets in Poland
and improved performance at "n", which started reporting positive
EBITDA in the past two quarters.

The rating on the proposed notes reflects the moderate proportion
of priority liabilities compared with total assets, and S&P's
understanding that the proposed and existing notes would rank pari
passu in a hypothetical default scenario.

In S&P's view, TVN's credit measures should improve in the near
and medium terms, thanks to the group's continuing good operating
performance--supported by a steady economic outlook for Poland
over the coming years--and to sustained growth at "n."

Rating stability depends on TVN continuing to improve its
operating performance and maintaining adjusted gross leverage to
EBITDA of close to 5x.

The ratings could come under pressure if TVN's liquidity were to
weaken meaningfully over the next few quarters, or if the group's
operating performance and/or improvement in credit ratios were not
to match S&P's guidance.  A more aggressive financial policy than
S&P anticipate, especially in terms of acquisitions, might also
result in rating pressure.

On the other hand, positive cash flow generation on a sustainable
basis resulting in adjusted funds from operations to debt of above
15% and adjusted gross debt to EBITDA of less than 4.5x could
result in upward rating momentum.


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


BANCO ESPIRITO: Fitch Cuts Rating on Preference Shares to 'BB'
--------------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
of four Portuguese banks -- Banco Comercial Portugues (Millennium
bcp), Banco Espirito Santo, Banco BPI, and Banco Internacional do
Funchal.  The downgrades reflect increased funding and liquidity
risks due to their high reliance on short- and medium-term
wholesale funding sources, with increased recourse to ECB funding,
in the context of continued difficulties to access the capital
markets, and deterioration in domestic performance and asset
quality.

At the same time, Fitch has downgraded the Individual rating of
Millenium bcp, BES and Caixa Geral de Depositos, while affirming
those of Banco BPI and Banif.  Fitch has also affirmed CGD's Long-
term IDR.

Banks have increased ECB funding since April 2010, which peaked in
August 2010 amid increased difficulties to access the interbank
and wholesale markets as a result of concerns surrounding the
Portuguese sovereign.  While there has been a decline in banks'
ECB and other central banks funding to end-September 2010, levels
remain well above pre-financial crisis levels, highlighting
continued funding and liquidity constraints.  This, together with
considerable refinancing needs from debt maturities in 2011 and
2012, have added pressure to the banks' liquidity and funding
position.

Fitch takes comfort from the banks' stable deposit bases, efforts
to improve liquidity buffers and significant loan growth
deceleration since H110.  However, increased investor concerns on
Portugal's public finances and economic prospects may limit access
to capital markets and prevent the banks from reducing ECB funding
in the short-term, and generally on wholesale funding in the
medium-term.  Also, funding constraint could intensify competition
for deposits and accentuate the need for balance sheet
deleveraging to ease liquidity pressures.  Combined with
anticipated asset quality deterioration given Fitch's view that
there is a risk of recession in 2011 and anaemic medium-term
growth, the banks' profitability is likely to come under further
strain.  These challenges are reflected in the Negative Outlook on
the banks' IDRs.

On a positive note, the banks benefit from well-established
domestic franchises, which support stable deposit bases, cost
containment and adequate capital adequacy, particularly
considering that state capital support has not been required.
Also, increased pressure on domestic profitability is partly being
offset by better-performing foreign operations in emerging
countries with high-margin, albeit high-risk, business.

CGD has been affirmed at 'A+', reflecting its Portuguese state
ownership.  CGD's IDRs are driven by the extremely high
probability of support from the Portuguese state, as expressed in
the '1' Support rating, and are at the bank's Support Rating
Floor.  CGD's investment bank subsidiary's (Caixa - BI) IDRs are
aligned with its parent's, as it is wholly owned by, and an
integral part of, the CGD group.  Any rating action affecting the
sovereign would have an impact on the IDRs of CGD and Caixa - BI.

Banco BPI's Individual rating of 'B/C' indicates fewer concerns on
its funding and liquidity position, which is comparatively better.
This is supported by a greater proportion of its funding coming
from deposits, more moderate refinancing needs in the next two
years and still robust asset quality indicators.

The ratings of the Portuguese banks affected by the rating action
are:

CGD:

  -- Long-term IDR affirmed at 'A+'; Outlook Negative

  -- Short-term IDR affirmed at 'F1'

  -- Individual Rating downgraded to 'C' from 'B/C'

  -- Support Rating affirmed at '1'

  -- Support Rating Floor affirmed at 'A+'

  -- Senior unsecured debt issues affirmed at 'A+'

  -- Market-linked securities affirmed at 'A+emr'

  -- Lower tier 2 subordinated debt issues affirmed at 'A'

  -- Commercial paper program affirmed at 'F1'

  -- Preference shares affirmed at 'A-'

  -- Senior debt guaranteed by the Portuguese state affirmed at
     'AA-'

Caixa - BI:

  -- Long-term IDR affirmed at 'A+'; Outlook Negative
  -- Short-term IDR affirmed at 'F1'
  -- Support Rating affirmed at '1'

Millennium bcp:

  -- Long-term IDR downgraded to 'BBB+' from 'A'; Outlook Negative

  -- Short-term IDR downgraded to 'F2' from 'F1'

  -- Individual Rating downgraded to 'C' from 'B/C'

  -- Support Rating affirmed at '2'

  -- Support Rating Floor affirmed at 'BBB'

  -- Senior unsecured debt downgraded to 'BBB+' from 'A'

  -- Lower tier 2 subordinated debt downgraded to 'BBB' from 'A-'

  -- Commercial paper program downgraded to 'F2' from 'F1'

  -- Preference shares downgraded to 'BBB-' from 'BBB+'

  -- Senior debt guaranteed by the Portuguese state affirmed at
     'AA-'

BES:

  -- Long-term IDR downgraded to 'BBB+' from 'A'; Outlook Negative

  -- Short-term IDR downgraded to 'F2' from 'F1'

  -- Individual Rating downgraded to 'C' from 'B/C'

  -- Support Rating affirmed at '2'

  -- Support Rating Floor affirmed at 'BBB-'

  -- Senior unsecured debt issues downgraded to 'BBB+' from 'A'

  -- Lower tier 2 subordinated debt downgraded to 'BBB' from 'A-'

  -- Commercial paper program downgraded to 'F2' from 'F1'

  -- Preference shares downgraded to 'BBB-' from 'BBB+'

  -- Senior debt guaranteed by the Portuguese state affirmed at
     'AA-'

Espirito Santo Financial Group, Luxembourg:

  -- Long-term IDR downgraded to 'BBB-' from 'BBB+'; Outlook
     Negative

  -- Short-term IDR downgraded to 'F3' from 'F2'

  -- Support Rating affirmed at '5'

  -- Support Rating Floor affirmed at No Floor

  -- Lower tier 2 subordinated debt downgraded to 'BB+' from 'BBB'

  -- Commercial paper program downgraded to 'F3' from 'F2'

  -- Preference shares downgraded to 'BB' from 'BBB-'

ESFIL - Espirito Santo Financiere:

  -- Senior unsecured debt issues downgraded to 'BBB-' from 'BBB+'
  -- Commercial paper program downgraded to 'F3' from 'F2'


Banco BPI:

  -- Long-term IDR downgraded to 'A-' from 'A'; Outlook Negative
  -- Short-term IDR downgraded to 'F2' from 'F1'
  -- Individual Rating affirmed at 'B/C'
  -- Support Rating affirmed at '2'
  -- Support Rating Floor affirmed at 'BBB-'
  -- Senior unsecured debt downgraded to 'A-' from 'A'
  -- Market-linked securities downgraded to 'A-emr' from 'Aemr'
  -- Lower tier 2 subordinated debt downgraded to 'BBB+' from 'A-'
  -- Commercial paper program downgraded to 'F2' from 'F1'
  -- Preference shares downgraded to 'BBB' from 'BBB+'

BPI:

  -- Long-term IDR downgraded to 'A-' from 'A'; Outlook Negative
  -- Short-term IDR downgraded to 'F2' from 'F1'
  -- Support Rating affirmed at '1'

Banif:

  -- Long-term IDR downgraded to 'BBB-' from 'BBB'; Outlook
     Negative

  -- Short-term IDR affirmed at 'F3'

  -- Individual Rating affirmed at 'C'

  -- Support Rating affirmed at '3'

  -- Support Rating Floor affirmed at 'BB'

  -- Senior unsecured debt downgraded to 'BBB-' from 'BBB'

  -- Lower tier 2 subordinated debt downgraded to 'BB+' from 'BBB-
     '

  -- Preference shares downgraded to 'BB' from 'BB+'

  -- Senior debt guaranteed by the Portuguese state affirmed at
     'AA-'

The rating impact, if any, from the above rating actions on BES's
and BCP's foreign subsidiaries as well as on the Portuguese banks'
securitisation transactions and covered bonds will be detailed in
separate comments.


BANIF: Fitch Downgrades Rating on Preference Shares to 'BB'
-----------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
of four Portuguese banks -- Banco Comercial Portugues (Millennium
bcp), Banco Espirito Santo, Banco BPI, and Banco Internacional do
Funchal.  The downgrades reflect increased funding and liquidity
risks due to their high reliance on short- and medium-term
wholesale funding sources, with increased recourse to ECB funding,
in the context of continued difficulties to access the capital
markets, and deterioration in domestic performance and asset
quality.

At the same time, Fitch has downgraded the Individual rating of
Millenium bcp, BES and Caixa Geral de Depositos, while affirming
those of Banco BPI and Banif.  Fitch has also affirmed CGD's Long-
term IDR.

Banks have increased ECB funding since April 2010, which peaked in
August 2010 amid increased difficulties to access the interbank
and wholesale markets as a result of concerns surrounding the
Portuguese sovereign.  While there has been a decline in banks'
ECB and other central banks funding to end-September 2010, levels
remain well above pre-financial crisis levels, highlighting
continued funding and liquidity constraints.  This, together with
considerable refinancing needs from debt maturities in 2011 and
2012, have added pressure to the banks' liquidity and funding
position.

Fitch takes comfort from the banks' stable deposit bases, efforts
to improve liquidity buffers and significant loan growth
deceleration since H110.  However, increased investor concerns on
Portugal's public finances and economic prospects may limit access
to capital markets and prevent the banks from reducing ECB funding
in the short-term, and generally on wholesale funding in the
medium-term.  Also, funding constraint could intensify competition
for deposits and accentuate the need for balance sheet
deleveraging to ease liquidity pressures.  Combined with
anticipated asset quality deterioration given Fitch's view that
there is a risk of recession in 2011 and anaemic medium-term
growth, the banks' profitability is likely to come under further
strain.  These challenges are reflected in the Negative Outlook on
the banks' IDRs.

On a positive note, the banks benefit from well-established
domestic franchises, which support stable deposit bases, cost
containment and adequate capital adequacy, particularly
considering that state capital support has not been required.
Also, increased pressure on domestic profitability is partly being
offset by better-performing foreign operations in emerging
countries with high-margin, albeit high-risk, business.

CGD has been affirmed at 'A+', reflecting its Portuguese state
ownership.  CGD's IDRs are driven by the extremely high
probability of support from the Portuguese state, as expressed in
the '1' Support rating, and are at the bank's Support Rating
Floor.  CGD's investment bank subsidiary's (Caixa - BI) IDRs are
aligned with its parent's, as it is wholly owned by, and an
integral part of, the CGD group.  Any rating action affecting the
sovereign would have an impact on the IDRs of CGD and Caixa - BI.

Banco BPI's Individual rating of 'B/C' indicates fewer concerns on
its funding and liquidity position, which is comparatively better.
This is supported by a greater proportion of its funding coming
from deposits, more moderate refinancing needs in the next two
years and still robust asset quality indicators.

The ratings of the Portuguese banks affected by the rating action
are:

CGD:

  -- Long-term IDR affirmed at 'A+'; Outlook Negative

  -- Short-term IDR affirmed at 'F1'

  -- Individual Rating downgraded to 'C' from 'B/C'

  -- Support Rating affirmed at '1'

  -- Support Rating Floor affirmed at 'A+'

  -- Senior unsecured debt issues affirmed at 'A+'

  -- Market-linked securities affirmed at 'A+emr'

  -- Lower tier 2 subordinated debt issues affirmed at 'A'

  -- Commercial paper program affirmed at 'F1'

  -- Preference shares affirmed at 'A-'

  -- Senior debt guaranteed by the Portuguese state affirmed at
     'AA-'

Caixa - BI:

  -- Long-term IDR affirmed at 'A+'; Outlook Negative
  -- Short-term IDR affirmed at 'F1'
  -- Support Rating affirmed at '1'

Millennium bcp:

  -- Long-term IDR downgraded to 'BBB+' from 'A'; Outlook Negative

  -- Short-term IDR downgraded to 'F2' from 'F1'

  -- Individual Rating downgraded to 'C' from 'B/C'

  -- Support Rating affirmed at '2'

  -- Support Rating Floor affirmed at 'BBB'

  -- Senior unsecured debt downgraded to 'BBB+' from 'A'

  -- Lower tier 2 subordinated debt downgraded to 'BBB' from 'A-'

  -- Commercial paper program downgraded to 'F2' from 'F1'

  -- Preference shares downgraded to 'BBB-' from 'BBB+'

  -- Senior debt guaranteed by the Portuguese state affirmed at
     'AA-'

BES:

  -- Long-term IDR downgraded to 'BBB+' from 'A'; Outlook Negative

  -- Short-term IDR downgraded to 'F2' from 'F1'

  -- Individual Rating downgraded to 'C' from 'B/C'

  -- Support Rating affirmed at '2'

  -- Support Rating Floor affirmed at 'BBB-'

  -- Senior unsecured debt issues downgraded to 'BBB+' from 'A'

  -- Lower tier 2 subordinated debt downgraded to 'BBB' from 'A-'

  -- Commercial paper program downgraded to 'F2' from 'F1'

  -- Preference shares downgraded to 'BBB-' from 'BBB+'

  -- Senior debt guaranteed by the Portuguese state affirmed at
     'AA-'

Espirito Santo Financial Group, Luxembourg:

  -- Long-term IDR downgraded to 'BBB-' from 'BBB+'; Outlook
     Negative

  -- Short-term IDR downgraded to 'F3' from 'F2'

  -- Support Rating affirmed at '5'

  -- Support Rating Floor affirmed at No Floor

  -- Lower tier 2 subordinated debt downgraded to 'BB+' from 'BBB'

  -- Commercial paper program downgraded to 'F3' from 'F2'

  -- Preference shares downgraded to 'BB' from 'BBB-'

ESFIL - Espirito Santo Financiere:

  -- Senior unsecured debt issues downgraded to 'BBB-' from 'BBB+'
  -- Commercial paper program downgraded to 'F3' from 'F2'


Banco BPI:

  -- Long-term IDR downgraded to 'A-' from 'A'; Outlook Negative
  -- Short-term IDR downgraded to 'F2' from 'F1'
  -- Individual Rating affirmed at 'B/C'
  -- Support Rating affirmed at '2'
  -- Support Rating Floor affirmed at 'BBB-'
  -- Senior unsecured debt downgraded to 'A-' from 'A'
  -- Market-linked securities downgraded to 'A-emr' from 'Aemr'
  -- Lower tier 2 subordinated debt downgraded to 'BBB+' from 'A-'
  -- Commercial paper program downgraded to 'F2' from 'F1'
  -- Preference shares downgraded to 'BBB' from 'BBB+'

BPI:

  -- Long-term IDR downgraded to 'A-' from 'A'; Outlook Negative
  -- Short-term IDR downgraded to 'F2' from 'F1'
  -- Support Rating affirmed at '1'

Banif:

  -- Long-term IDR downgraded to 'BBB-' from 'BBB'; Outlook
     Negative

  -- Short-term IDR affirmed at 'F3'

  -- Individual Rating affirmed at 'C'

  -- Support Rating affirmed at '3'

  -- Support Rating Floor affirmed at 'BB'

  -- Senior unsecured debt downgraded to 'BBB-' from 'BBB'

  -- Lower tier 2 subordinated debt downgraded to 'BB+' from 'BBB-
     '

  -- Preference shares downgraded to 'BB' from 'BB+'

  -- Senior debt guaranteed by the Portuguese state affirmed at
     'AA-'

The rating impact, if any, from the above rating actions on BES's
and BCP's foreign subsidiaries as well as on the Portuguese banks'
securitisation transactions and covered bonds will be detailed in
separate comments.


===========
S W E D E N
===========


* SWEDEN: Corporate Bankruptcies Up 1% in October 2010
------------------------------------------------------
Nordic Business Report, citing data by business and credit
information agency Upplysningscentralen AB, reports that the
number of corporate bankruptcies in Sweden increased by 1% year-
on-year to 553 in October 2010.

After a growth of 15% in September 2010, the bankruptcy count
increased for the second month in a row, breaking the declining
trend from the beginning of the year, the report relates.

According to Nordic Business Report, in the first ten months of
2010, the bankruptcy count shrank by 10% on the year to 5,102,
driven by positive development in most sectors.  The report says
wholesale trade and motor vehicle sales and service registered the
biggest decrease (-26% and -25%, respectively), while the
increasing trend for hotels and restaurants and for facility
services continued.


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


* Moody's Assigns 'Ba2' Ratings to Municipality of Izmir
--------------------------------------------------------
Moody's Investors Service has assigned issuer ratings of Ba2
(Global Scale, local and foreign currency) and A3.tr (Turkey
National Scale) to the metropolitan municipality of Izmir, in
western Turkey.  The rating outlook is stable.

                        Ratings Rationale

"Izmir's Ba2/A3.tr ratings reflect its strong operating finances
and good controls on debt," says Francesco Soldi, a Moody's Vice
President and lead analyst for Izmir.  Growing shared taxes, which
make of the bulk of revenues, and good expenditure controls have
produced an average surplus of 49% of operating income in 2005-
2009.  Budgets for 2010-2012 forecast a reduction to just over
35%, but this level will preserve good margins for debt payments
as well as support capital funding.

Direct municipal debt has fallen over the past five years and at
YE 2009 amounted to approximately TRY830 million, equivalent to a
moderate 66% of the city's operating income, 82% with the debt of
municipal companies, with both figures stable in 2010.  With the
exception of the water affiliate IZSU, which is profitable and
debt-free, municipal-related companies require subsidies from the
city and are a contingent liability for Izmir.

"We expect Izmir's to continue its conservative financial
management during the projected uptake in its investment activity"
continues Mr. Soldi.  Although equity and cash reserves will
continue to represent the major sources of capex financing, direct
municipal borrowing is expected to finance a greater proportion of
new capital expenditures compared with past years.  Nevertheless,
Moody's considers this projected debt strategy as manageable in
view of growing revenues.

With the third-largest economic base in the country, Izmir is
well-positioned to benefit from the country's healthy economic
prospects.  Located on Turkey's western coast, Izmir is the hub of
Aegean region with 7% of Turkey's GDP and 3.9 million inhabitants
with per capita income 35% above the national average.


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


CORSAIR NO 4: Moody's Junks Ratings on Credit-Linked Notes
----------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Corsair (Jersey) No. 4 under Series 6, a CDO square
referencing seven static portfolios of corporate and sovereign
entities.

Issuer: Corsair (Jersey) No.  4 Limited - Series 6

  -- US$85M Cross-Contingent Step-Down Portfolio Credit-Linked
     Notes due 2024, Downgraded to Caa2 (sf); previously on Mar 6,
     2009 Downgraded to Ba3 (sf)

                        Ratings Rationale

Moody's explained that the rating action taken is the result of
the deterioration of the credit quality of the reference
portfolio.  The 10 year weighted average rating factor, excluding
Ca/C rated names, of the inner CDO portfolios currently ranges
between 574 and 806, equivalent to an average rating of Baa3.  The
transaction is exposed to several reference entities that suffered
credit events since last rating action date, in particular
Takefuji Corporation, Thomson S.A., Syncora Guarantee Inc, Aiful
Corporation and CIT Group Inc. These entities are referenced in
several inner CDOs and therefore have a significant impact on the
expected loss of the outer CDO tranche.  The Telecommunications,
FIRE: Insurance and Banking sectors are the most represented in
the inner portfolios, weighting on average 10.74%, 10.40%, and
9.71%, respectively, of the inner portfolios notional.

The transaction has 14.14 years to legal final maturity and 4.14
years until the credit observation end date.  While the legal
final maturity of the notes is in December 2024, note holders have
a put option to redeem their notes in Jan 2015 at the then current
notional amount.  In the event note holders choose not to exercise
the put option, the note coupon will drop to US$-Libor minus 20
bps from US$-Libor plus 55 bps.

In the process of determining the final rating, Moody's assigned a
low likelihood to the option not being exercised, using the short
exposure period as the basis of the rating analysis.  Moody's also
looked at results of sensitivity analysis -- which included
removal of forward-looking measures, the notching adjustment on
each entity's rating due to watch for downgrade or negative
outlook was removed, resulting in a positive impact of one notch;
and the impact of the transaction continuing past the put option
redemption date at the lower coupon rate which resulted in a
positive impact of two notches.

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of rating committee
considerations.  These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, and
specific documentation features.  All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, may influence the final rating decision.

Moody's analysis for this transaction is based on the CDOROMTM.
This model is available on moodys.com under Products and Solutions
-- Analytical models, upon return of a signed free license
agreement.

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.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Corporate Synthetic
Obligations", key model inputs used by Moody's in its analysis may
be different from the manager/arranger's reported numbers.  In
particular, rating assumptions for all publicly rated corporate
credits in the underlying portfolio have been adjusted for "Review
for Possible Downgrade", "Review for Possible Upgrade", or
"Negative Outlook".

Moody's analysis of corporate CSOs is subject to uncertainties,
the primary sources of which includes complexity, governance and
leverage.  Although the CDOROM model capture many of the dynamics
of the Corporate CSO structure, it remains a simplification of the
complex reality.  Of greatest concern are (a) variations over time
in default rates for instruments with a given rating, (b)
variations in recovery rates for instruments with particular
seniority/security characteristics and (c) uncertainty about the
default and recovery correlations characteristics of the reference
pool.  Similarly on the legal/structural side, the legal analysis
although typically based in part on opinions (and sometimes
interpretations) of legal experts at the time of issuance, is
still subject to potential changes in law, case law and the
interpretations of courts and (in some cases) regulatory
authorities.  Although the impact of these decisions is mitigated
by structural constraints, anticipating the quality of these
decisions necessarily introduces some level of uncertainty in
Moody's assumptions.  Given the tranched nature of Corporate CSO
liabilities, rating transitions in the reference pool may have
leveraged rating implications for the ratings of the Corporate CSO
liabilities, thus leading to a high degree of volatility.  All
else being equal, the volatility is likely to be higher for more
junior or thinner liabilities.  The base case scenario modeled
fits into the central macroeconomic scenario predicted by Moody's
of a sluggish recovery scenario of the corporate universe.  Should
macroeconomics conditions evolves towards a more severe scenario
such as a double dip recession, the CSO rating will likely be
downgraded to an extent depending on the expected severity of the
worsening conditions.


NATIONAL BANK: Fitch Affirms LT Issuer Default Rating at 'BB+'
--------------------------------------------------------------
Fitch Ratings has affirmed London-based National Bank of Egypt
UK's Long-term Issuer Default Rating at 'BB+' with a Stable
Outlook, its Short-term IDR at 'B', Individual rating at 'D' and
Support rating of '3'.

NBE UK's IDRs and Support Rating reflect the moderate probability
of support that it would likely receive, ultimately from the
Egyptian authorities, via its 100% owner, National Bank of Egypt
(NBE, rated 'BB+'/Stable Outlook).  The IDRs and Support Rating
are aligned with those of NBE and Egypt's sovereign rating
('BB+'/Stable).

NBE UK's Individual Rating reflects its balance sheet liquidity,
adequate capitalization and declining exposure to impaired assets.
However, it also recognizes the bank's constrained profitability
and concentrations on both sides of the balance sheet.  Downside
risk to the Individual Rating would arise if pressure to maintain
or increase profitability resulted in a higher risk strategy.
However, Fitch considers this unlikely to occur in the short term.
Upside potential to the Individual Rating is currently limited.

Following the global financial crisis, NBE UK revised its
strategy.  Management's primary focus is on improving the credit
quality of its assets and maintaining liquidity.  In line with its
revised strategy, management has continued to invest cash flows
from maturing assets into 'AAA'-rated government securities and
government-guaranteed instruments.  At end-FY10, 81% of the
balance sheet was invested in investment grade assets, compared
with 76% at end-FY09.  Apart from improving credit quality, the
new strategy also helps NBE UK comply with new liquidity
regulations from the Financial Services Authority.

In order to mitigate the impact on profitability, NBE UK plans to
shift profit generation off balance sheet by growing its trade
finance business, which should improve fee income.

Fitch believes that NBE UK is adequately capitalized.  Driven by a
19% decrease in risk-weighted asset and a full retention of FY10's
net income, the bank reported a significantly improved capital
adequacy ratio of 27.1% at end-FY10 (end-FY09: 21.9%).  The bank
does not plan to pay dividends till end-FY12.

NBE UK's main areas of activity are the wholesale money-market
business, debt securities, syndicated loan facilities and the
provision of trade finance facilities, primarily to Egyptian
banks.

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


ROK PLC: Projects on Hold as Talks Start With Suitors
-----------------------------------------------------
Perry Gourley at The Scotsman reports that work on tens of
millions of pounds of contracts being carried out by Rok Plc has
been suspended as talks with potential buyers continue.

As reported in the Troubled Company Reporter-Europe on November 9,
2010, Rok boss Garvis Snook has placed the company into
administration.  Construction Inquirer related that a stock
exchange announcement said: "The board of Rok announces that it
has resolved to put the Company into administration and to make an
application to the Financial Services Authority to suspend the
listing and trading of the Company's Ordinary Shares on the Stock
Exchange.  It is anticipated that the administration and
suspension will become effective shortly."  The report noted that
the move follows weeks of rumors that the company was struggling
in the maintenance sector which has already been hit by the
collapse of Connaught.

According to The Scotsman, administrators at
PricewaterhouseCoopers, who were called in by directors rather
than the banks, disclosed that work on existing contracts had been
temporarily suspended although employees continued to be paid.

The report relates that Alan Brown, director of business recovery
services at PwC in Scotland, said there had already been
significant interest in the company and in its Scottish interests.

Among the major Scottish projects where Rok's work has stopped
include brewing and distilling giant Diageo's GBP86 million
bottling plant in Leven and a GBP65 million bio-energy plant for
the company's Cameronbridge distillery, The Scotsman relates.

Highlands & Islands Enterprise, which only last month awarded Rok
a GBP32 million contract over four years to carry out most of its
building work across the region, has also seen work suspended on
projects including a renewable energy manufacturing plant in
Machrihanish in Argyll, the report adds.

ROK PLC -- http://www.rokgroup.com/-- is a holding company of a
group of companies providing response maintenance, planned repairs
and refurbishment and new build services in the United Kingdom.
The Company operates in three segments: response maintenance;
planned repairs and refurbishment, and new build.  Rok Plc
provides a range of plumbing, heating and electrical (PHE)
services.  The Company's wholly owned subsidiaries include Rok
Building Limited, Rok Development Limited, Richardson Projects
Limited, LAS Plant Limited, Rok Civil Engineering Limited and
Tulloch Transport Limited.


ROK PLC: PricewaterhouseCoopers Receives 100++ Interests
--------------------------------------------------------
PricewaterhouseCoopers said it has received more than 100
expressions of interest in failed building contractor Rok after
both Rok PLC and Rok Building Limited sunk into administration,
24dash.com reports.

According to the report, PwC was confirmed administrator and
disclosed its priority to "urgently review the financial position
of the company and seek a buyer of the businesses".

According to the report, a PwC spokesperson said the interest had
been wide-ranging.  The report relates that the spokesperson said:
"It's been a mixture of everything from those interested in parts
of the business to those interested in the whole lot. I think
they're [the administrators] hoping to wrap it up quite quickly.
Some of the jobs take days or weeks, some take months, but I think
they're hoping for more days than weeks on this one."

24dash.com notes that rival Mears, who along with Morgan Sindall,
took on most of the Connnaught contracts following its
administration in September, confirmed its interest in Rok's
"social housing facing" work, but its chairman Bob Holt appeared
to rule out any non-core business work.

ROK PLC -- http://www.rokgroup.com/-- is a holding company of a
group of companies providing response maintenance, planned repairs
and refurbishment and new build services in the United Kingdom.
The Company operates in three segments: response maintenance;
planned repairs and refurbishment, and new build.  Rok Plc
provides a range of plumbing, heating and electrical (PHE)
services.  The Company's wholly owned subsidiaries include Rok
Building Limited, Rok Development Limited, Richardson Projects
Limited, LAS Plant Limited, Rok Civil Engineering Limited and
Tulloch Transport Limited.


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


* EUROPE: Bruegel Proposes Court-Supervised Debt Restructuring
--------------------------------------------------------------
James G. Neuger at Bloomberg News reports that the Bruegel
research institute said that Europe needs to create a court-
supervised debt-restructuring system that works in tandem with the
financial-aid facility set up this year to shield the euro from
future debt shocks.

According to Bloomberg, Bruegel proposed putting the European
Union's supreme court in charge of working out creditors' claims,
with emergency loans coming from the European Financial Stability
Facility launched this year with a EUR440 billion (US$614 billion)
warchest.

Set up by European governments in 2005, Bruegel specializes in
macroeconomic research and global economic management, Bloomberg
discloses.

The system must "not be too lenient to private creditors," wrote
five authors including Bruegel director Jean Pisani-Ferry, former
EU adviser Andre Sapir and  Anne Krueger, a former first deputy
managing director of the International Monetary Fund, according to
Bloomberg.

The system would only apply to future debt issues, Bloomberg
states.

Bloomberg relates the authors said the losses should be
adjudicated by the Luxembourg-based European Court of Justice
under legal guidelines that treat all creditors equally.


* EUROPE: Private Creditors Must Take Part in EU Debt Mechanism
---------------------------------------------------------------
Patrick Donahue at Bloomberg News reports that German Chancellor
Angela Merkel on Tuesday said in Berlin that private creditors
must participate in a permanent crisis mechanism for the euro.

As reported by the Troubled Company Reporter-Europe on Nov. 4,
2010, Bloomberg News said European Union leaders endorsed German
calls for a rewrite of EU treaties to create a permanent debt-
crisis mechanism, while sparring over whether to force bondholders
to help pay the bill for rescuing financially distressed states.
Bloomberg disclosed as the biggest contributor to this year's
hastily arranged EUR860 billion (US$1.2 trillion) in loans and
pledges to stem the debt crisis, Germany won backing to set up a
permanent system by 2013.  Germany rules out extending this year's
emergency taxpayer-funded financial assistance mechanisms when
they expire in 2013, Bloomberg noted.  Ms. Merkel's follow-up
system would extend debt maturities, suspend interest payments and
waive creditor claims, Bloomberg said, citing an Oct. 28
Handelsblatt newspaper report.


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *