TCREUR_Public/101119.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

           Friday, November 19, 2010, Vol. 11, No. 229

                            Headlines



A U S T R I A

A-TEC INDUSTRIES: Still in Talks With AE&E's Potential Buyers


D E N M A R K

DONG ENERGY: S&P Assigns 'BB+' Rating to Junior Securities


G E R M A N Y

DUERR AG: Moody's Withdraws 'B2' Corporate Family Rating


I R E L A N D

CALYX GROUP: Anglo Seeks EUR17MM Summary Judgment Against Director
IRISH LIFE: Expects Narrower Full-Year Operating Losses for 2010


I T A L Y

LOTTOMATICA GROUP: Moody's Assigns 'Ba2' Rating to EUR300MM Notes
WIND TELECOMUNICAZIONI: S&P Affirms 'B+' Corporate Credit Rating


K A Z A K H S T A N

BTA BANK: No Recovery Payments to Creditors in Third Quarter


N E T H E R L A N D S

IFCO SYSTEMS: S&P Puts 'BB-' Rating on CreditWatch Positive


N O R W A Y

ELEKTRIM SA: In Talks to Settle Polska Telefonia Ownership Dispute
SHIP FINANCE: Moody's Assigns (P)'B1' Rating to Sr. Unsec. Notes


R U S S I A

BANCA INTESA: Moody's Changes Outlook on 'D-' Rating to Stable
KAPITAL TOUR: Averts Bankruptcy After Bank Extends Loan
KUZBASSRAZREZUGOL OAO: Moody's Raises Corp. Family Rating to B3
* Fitch Affirms 'BB-' Long-Term Ratings on Republic of Karelia


S P A I N

CAJA DE AHORRO: S&P Takes Various Rating Actions on Notes
FONCAIXA ICO-FTVPO: Fitch Affirms 'CCsf' Rating on Class D Notes
FONDO DE TITULIZACION: S&P Cuts Rating on Class D Notes to CCC-


S W E D E N

SWEDBANK AB: Moody's Reviews 'D+' Bank Financial Strength Rating


U N I T E D   K I N G D O M

AMG PORTFOLIO: Goes Into Administration
BRADFORD & BINGLEY: Moody's Upgrades Ratings on Tier 1 to 'Ca'
CRUSADERS: Winding Up Order Dismissed
EDWARDS GROUP: S&P Raises LT Corporate Credit Rating to 'B+'
LLOYDS BANKING: Private Equity Arm Mulls Spin-Off

MCNAMARA CONSTRUCTION: Westminster Lodge Affected by Receivership
NORTHERN ROCK: Moody's Upgrades Ratings on Lower Tier 2 to 'Ca'
OVERFINCH: Goes Into Administration
* UK: Companies Tap Into Savings to Pay High-Interest Debts


X X X X X X X X

* BOOK REVIEW: Vertical Integration, Outsourcing, and Corporate




                            *********


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A U S T R I A
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A-TEC INDUSTRIES: Still in Talks With AE&E's Potential Buyers
-------------------------------------------------------------
A-Tec Industries AG and its creditors are still in talks with
several parties interested to buy its AE&E unit, Boris Groendahl
at Bloomberg News reports, citing the spokesman of A-Tec's
creditor committee.

"I presume that the situation is unchanged and several interested
parties are in play," Hans-Georg Kantner of credit protection
association Kreditschutzverband 1870 said in an e-mailed response
to questions, according to Bloomberg.

Mr. Kantner declined to identify the bidders, Bloomberg notes.

Separately, Bloomberg News' Mr. Groendahl, citing Austrian
newspaper WirtschaftsBlatt, reports Austrian investor Ronny Pecik
has teamed up with engineering group Christof-Group to bid for
A-Tec's AE&E unit.

According to Bloomberg, the newspaper said they join Korea's
Doosan Heavy Industries and Construction Co. in performing due
diligence on AE&E's books.

Zoe Schneeweiss at Bloomberg News reports Mr. Pecik told
Wirtschaftsblatt newspaper that he sees his role in a potential
takeover of the AE&E unit as that of a finance investor, while
Christof Group would run the unit.

Bloomberg's Ms. Schneeweiss, citing Oesterreich newspaper, also
reports that Oleg Deripaska is also interested in the AE&E unit.

As reported by the Troubled Company Reporter-Europe on Nov. 17,
2010, the Kreditschutzverband von 1870 creditor-protection group,
as cited by Bloomberg News, said A-Tec may sell its AE&E
construction unit after loan-reorganization talks failed.

As reported by the Troubled Company Reporter-Europe on Nov. 5,
2010, Bloomberg News said the AE&E unit, which builds power plants
for clients such as utilities or steel makers, is A-Tec's biggest
unit with 60% of the group's revenue and 83% of pretax profit in
2009.  Bloomberg disclosed failure to keep it afloat would
diminish the funds for creditors.

On Oct. 22, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that A-Tec sought court clearance to
reorganize debt after losing access to its line of credit because
of an Australian power-station project's financial difficulties.
Bloomberg disclosed A-Tec said in a statement on Oct. 20 that the
company filed for self-administered reorganization proceedings at
the Vienna Commercial Court and appointed trustees for
bondholders.  Bloomberg said A-Tec has 90 days under Austrian law
to seek an agreement with lenders, after which it can seek full
protection from creditors.  The company has a EUR798 million
(US$1.11 billion) revolving credit facility and EUR302 million of
outstanding bonds, according to Bloomberg data.

A-Tec Industries AG is an engineering company based in Vienna,
Austria.


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D E N M A R K
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DONG ENERGY: S&P Assigns 'BB+' Rating to Junior Securities
----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB+'
long-term issue rating to the proposed, long dated, optionally and
mandatorily deferrable, and subordinated capital securities to be
issued by DONG Energy A/S (A-/Stable/A-2).  The completion and
size of the transaction remain subject to market conditions and to
the final amount of notes repurchased as part of the tender offer
for its outstanding 'BBB' rated EUR1.1 billion perpetual
subordinated capital securities.  DONG Energy plans to use the
proceeds of the proposed securities to bolster its capital
structure.

S&P considers the proposed securities to have intermediate equity
content because they adequately meet S&P's relevant criteria in
terms of: subordination; permanence; and deferability at the
company's discretion or mandatory if certain conditions are met
for a period of at least five years.

S&P notch down the instrument from DONG Energy's stand-alone
credit profile, which S&P currently assess as 'bbb+'.  The three-
notch differential between the 'BB+' rating on the proposed
securities and the 'bbb+' SACP reflects the application of S&P's
notching criteria, which calls for:

* A one-notch differential for subordination, as the corporate
  credit rating on DONG Energy is investment grade; and

* An additional two-notch differential for payment flexibility,
  reflecting that the deferability of interest is optional and
  mandatory and that the issuer's SACP is investment grade.

The notching of the proposed securities is linked to S&P's
perception of the currently relatively low likelihood of the
deferral being implemented.  Should S&P's perception change, the
notching may increase significantly and, in relative terms, more
quickly than any revision of the corporate credit rating or the
SACP assigned to DONG Energy.

Given S&P's view of the intermediate equity content of the
proposed securities, S&P will allocate 50% of the related payments
as a fixed charge and 50% as an equivalent of a common dividend,
in line with S&P's hybrid criteria.  The 50% treatment (of
principal and accrued interest) also applies to the adjustment of
debt.

                 Key Factors of S&P's Assessment
                 of the Instrument's Permanence

Although the proposed securities have a stipulated maturity date
in 3010, they can be called at any time for tax, rating, and
accounting events.  In addition, S&P understand that the issuer
can redeem them for cash on the first call date (June 2021) and on
each annual interest payment date thereafter.

The combination of a 100 basis-point margin step-up on the
proposed securities and an issuer cash call on the first call date
in June 2021 would strongly reduce the permanence of the proposed
securities, in S&P's view, by providing an embedded incentive to
call the securities at that time.  This would consequently reduce
the proposed securities' equity content, unless it were mitigated
by the replacement capital covenant that S&P understands DONG
Energy intends to enter into separately, and which becomes
effective immediately on issuance.

Under the RCC, drawn up for the benefit of specified covered
debtholders, DONG Energy commits to replace the proposed
securities with an equivalent amount of equity content arising
either from new common shares, or from a similar instrument, in
the 360 days prior to redeeming the proposed securities.  S&P
understand that the replacement securities will rank pari passu
with, or junior to, the proposed securities.

S&P considers that the RCC being in place from the date of
issuance strengthens the permanency of the instrument and supports
DONG Energy's intention to have the proposed securities, or any
similar replacement securities, as a permanent feature of its
capital structure.

                 Key Factors of S&P's Assessment
                of the Instrument's Deferability

S&P considers that DONG Energy's option to defer payment on the
proposed securities is somewhat restricted.  Its exercise is
conditional on the absence, in the preceding three months, of the
approval by the shareholders, at the annual general meeting, of a
recommendation by the Board for payment of any common dividend or
actual buyback of its equity shares.  S&P see this as a negative
factor, based on S&P's assessment of hybrids whereby instruments
are deferrable at any time and without precondition.  However,
this condition remains acceptable under S&P's methodology, as only
the dividend cycle would constrain deferral.

The option to defer interest on the proposed securities is
unlimited in time, which supports the equity content of the
proposed instrument.  Deferred interest is, however, cash
cumulative, and will ultimately be settled in cash.

The instrument's payment flexibility is strengthened by a full and
mandatory cessation of coupon payments if DONG Energy's issuer
credit rating were to fall to 'BB+' or lower.  According to the
terms of the instrument, DONG Energy can only resume paying
coupons once the ICR returns to investment grade ('BBB-' or
higher) or five years after the first coupon deferral.  Any missed
coupons will accumulate on a compound basis.  S&P believes that,
in the event of credit deterioration, the mandatory coupon
deferability clause ensures payments will stop earlier than for an
instrument where only optional deferability is contemplated.  This
clause is a supportive feature of the current credit quality of
the issuer, and S&P believes it could contribute to high equity
content if it was retaining cash in the business after only a
moderate level of deterioration in creditworthiness.

                Key Factors of S&P's Assessment
               of the Instrument's Subordination

The securities and the coupons are proposed to constitute direct,
unsecured, and subordinated obligations of DONG Energy.  The
proposed securities rank senior to common and preferred shares.
The securities rank pari passu with the existing hybrid.

                           Ratings List

                            New Rating

                         DONG Energy A/S

            Junior Subordinated Securities          BB+


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G E R M A N Y
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DUERR AG: Moody's Withdraws 'B2' Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service has withdrawn the B2 corporate family
rating and the B2 PD rating of Duerr AG at the company's request.

                        Ratings Rationale

Moody's Investors Service has withdrawn the credit rating for its
own business reasons.

Moody's last rating action on Duerr was a downgrade of the CFR to
B2 with a negative Outlook from B1/Negative on August 20, 2009.

Headquartered in Stuttgart, Germany, Duerr is a leading plant and
mechanical engineering group present in 21 countries.  Duerr's
product offering includes paint shops, assembly systems, balancing
and diagnostic systems, industrial cleaning systems and related
services.  In fiscal year 2009 the company generated revenues of
approx. EUR1.1 billion.


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I R E L A N D
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CALYX GROUP: Anglo Seeks EUR17MM Summary Judgment Against Director
------------------------------------------------------------------
Mary Carolan at The Irish Times reports that Anglo Irish Bank is
seeking summary judgment for more than EUR17 million against
Dublin businessman Maurice Healy over unpaid loans.

The Irish Times relates proceedings against Mr. Healy were
transferred to the Commercial Court on Monday by Mr. Justice Peter
Kelly.

According to The Irish Times, the case arises from two loan
facilities -- the first, for a maximum GBP5.75 million, was made
available by Anglo in October 2008 to Mr. Healy, while the second,
for EUR10.8 million, was made available in May 2009.

The 2008 facility was to enable Mr. Healy to fund an equity
investment in Calyx Holdings Ltd (CHL), a company set up to
acquire Clayfox Gilttop Ltd., The Irish Times discloses.  The loan
was secured by a mortgage of shares held by Mr. Healy in CHL and
an assignment of a life policy, The Irish Times notes.

The 2009 facility was to fund personal investments by Mr. Healy,
and was secured by charges over property and various shareholdings
of his, according to The Irish Times.  However, Anglo claims the
liability of Mr. Healy under the facility letters exceeds the
value of any anticipated realizations from the secured assets, The
Irish Times states.

The bank, as cited by The Irish Times, said Mr. Healy was a
founder and director of CHL and other companies in the Calyx
group.  Anglo had advanced considerable facilities to the Calyx
group, which were in default, The Irish Times notes.

The Irish Times relates Anglo sold the Calyx debt to a third party
and all connected security, including a performance guarantee from
Mr. Healy, were also transferred as part of the sale.  Anglo said
it had deferred action against Mr. Healy until that transaction
had completed, according to The Irish Times.

The Irish Times says the bank considered there was a risk the
purchaser of the debt would take action against Mr. Healy under
the performance guarantee and was anxious to get judgment against
him in these proceedings as soon as possible.

Anglo claims both facilities were repayable on demand, The Irish
Times states.  On October 28, it claims it informed
Mr. Healy GBP6.45 million was due and owing under the first
facility and the whole EUR10.25 million was due under the second.
It demanded repayment of both amounts by November 4, and said if
the sums were not repaid it would issue proceedings, according to
The Irish Times.

Calyx is an independent provider of Managed ICT Services in the UK
& Ireland.


IRISH LIFE: Expects Narrower Full-Year Operating Losses for 2010
----------------------------------------------------------------
Geoff Percival at The Irish Examiner reports that Irish Life &
Permanent has said that it expects to see a significant narrowing
in full-year operating losses for 2010.

The Irish Examiner relates in its latest trading update, the
financial services group on Wednesday said that it expects
"operating earnings for the year to be significantly better than
2009", when it posted an operating loss of EUR196 million.

The Irish Examiner notes that while IL&P's retail banking arm --
Permanent TSB -- continues to be loss-making, its life assurance
division is profitable and has been growing during the year.  That
business was the main driver in IL&P managing to cut its first
half losses by over EUR40 million, to EUR10 million, earlier this
year, The Irish Examiner states.

According to The Irish Examiner, management stated -- in
Wednesday's update -- that continued weakness in domestic demand,
coupled with the disruption in the debt markets has "made for
challenging operating conditions for the group's businesses".

Headquartered in Dublin, Irish Life & Permanent plc --
http://www.irishlifepermanent.ie/-- is a provider of personal
financial services to the Irish market.  Its business segments
include banking, which provides retail banking services; insurance
and investment, which includes individual and group life assurance
and investment contracts, pensions and annuity business written in
Irish Life Assurance plc and Irish Life International, and the
investment management business written in Irish Life Investment
Managers Limited; general insurance, which includes property and
casualty insurance carried out through its associate, Allianz-
Irish Life Holdings plc, and other, which includes a number of
small business units.  On June 30, 2008, it acquired the rest of
the 50% interest in Joint Mortgage Holdings No. 1 Limited (the
parent of Springboard Mortgages Limited), resulting in Springboard
Mortgages becoming a wholly owned subsidiary.  On December 23,
2008, it acquired an additional 23% of Cornmarket Group Financial
Services Ltd, bringing its interest to 98%.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on April 8,
2010, Fitch Ratings downgraded Irish Life & Permanent's Individual
rating to 'D' from 'C'.  Fitch said the downgrade reflects Fitch's
concerns about ILP's profitability in the next two years, its
ability to absorb increased provisioning charges in the banking
business through operating profits, the standalone capital
position of the bank and its large share of wholesale funding.
According to Fitch, while the insurance business, Irish Life,
continues to be profitable at an operating level, its
profitability was not sufficient to compensate for losses in the
banking business, permanent tsb, in 2009.

IL&P continues to carry Moody's Investors Servie's standalone Bank
Financial Strength Rating of D, which maps to Ba2 on the long term
rating scale.  IL&P's also carries an undated subordinated debt
rating of Ba3 from the rating agency.


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I T A L Y
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LOTTOMATICA GROUP: Moody's Assigns 'Ba2' Rating to EUR300MM Notes
-----------------------------------------------------------------
Moody's Investors Service assigned a Baa3 rating to Lottomatica's
proposed five or seven year EUR500 million notes and a Ba2 rating
to a proposed EUR300 million subordinated interest-deferrable
capital securities due 2070.  Moody's also upgraded the rating of
Lottomatica's EUR750 million subordinated interest-deferrable
capital securities due 2066 to Ba2 from Ba3.  The upgrade reflects
a reconsideration of notching in light of recent changes to
Moody's Hybrid Tool Kit which is a framework for classifying
hybrid securities based on their relative debt and equity
characteristics.

                        Ratings Rationale

The Ba2 rating on the two subordinated interest-deferrable capital
securities is two notches below Lottomatica's Baa3 senior
unsecured rating reflecting (i) the existing and proposed
securities' subordinated ranking in liquidation, and (ii) the
issuer's option to defer interest payments on a cumulative basis
if no dividends on ordinary and preferred shares have been paid in
the preceding three months.

Lottomatica's Baa3 senior unsecured rating reflects the company's
solid market position in the global lottery gaming market, its
position as the market leader in the Italian gaming industry, its
solid profitability, its strong track record of winning and
retaining new contracts, and its good growth prospects
internationally.  Key credit risks include higher leverage in 2010
due to debt incurred to finance growth and contract renewals.
Ratings are also tempered by the slow growth of US lottery sales
and slower than anticipated growth in instant tickets in Italy.

The stable outlook reflects Moody's expectation for modest sales
and earnings growth from existing lottery contracts, contract
extensions and rebids, and net new contracts.  It also reflects
the company's stated commitment to its current rating and Moody's
expectation that Lottomatica will continue to address its upcoming
refinancing needs well in advance of maturities.

Lottomatica's ratings could be upgraded if debt to EBITDA and
EBITDA-capex/interest expense were to sustainably improve to below
2.5 times and above 5.0 times, respectively.  Ratings could be
downgraded if Lottomatica's operating performance weakens or its
financial policies become more aggressive.  Specifically, ratings
could be downgraded if the company's debt/EBITDA appears likely to
remain above 3.25 times for a sustained period, EBITDA-capex to
interest dropped below 2.5 times or retained cash flow to net debt
declined below 10%.

Ratings assigned:

Lottomatica Group S.p.A.

  -- EUR500 million five or seven year senior unsecured guaranteed
     notes at Baa3

  -- EUR300 million subordinated interest-deferrable capital
     securities due 2070 at Ba2

Rating upgraded:

  -- EUR750 million subordinated interest-deferrable capital
     securities due 2066 to Ba2 from Ba3

Ratings affirmed:

  -- EUR750 senior unsecured guaranteed notes due 2016 at Baa3

GTECH Corporation

  -- Senior unsecured guaranteed term loans due 8/29/2012 at Baa3

  -- Senior unsecured guaranteed revolving credit facilities due
     8/29/2012 at Baa3

Lottomatica Group S.p.A. is a global operator and supplier of
online lottery systems, is the sole concessionaire of the world's
largest lottery in Italy, and has a growing presence in instant
ticket printing and sports betting.  Lottomatica Group S.p.A. is
majority owned by the De Agostini Group, a publishing, media, and
financial services company.


WIND TELECOMUNICAZIONI: S&P Affirms 'B+' Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Wind Telecomunicazioni SpA, Italy's second-largest
integrated alternative telecommunications operator, to positive
from stable.  At the same time, the 'B+' long-term corporate
credit rating on Wind was affirmed.

In addition, S&P assigned a 'BB-' issue rating to Wind's proposed
EUR3.43 billion senior secured credit facilities (to be borrowed
at Wind Telecomunicazioni SpA) and EUR3.2 billion-equivalent
senior secured notes (to be issued by Wind Acquisition Finance
S.A.).  The recovery rating on the proposed facilities and notes
is '2', indicating S&P's expectation of substantial (70%-90%)
recovery in the event of a payment default.

Furthermore, S&P affirmed the 'B+' issue rating on Wind's third-
lien (high yield) notes and 'B-' issue rating on the company's
subordinated payment-in-kind notes.  The related recovery ratings
on these instruments remain unchanged at '4' and '6',
respectively, indicating S&P's expectation of average (30%-50%)
and negligible (0%-10%) recovery for noteholders in the event of a
payment default.

The ratings on the proposed debt instruments are based on draft
documentation.  As such, these ratings are subject to S&P's
satisfactory review of the final documentation.  In the event of
any changes to the amount or terms of the debt, the recovery and
issue ratings might be subject to further review.  Importantly, it
is S&P's understanding that the proposed senior secured bonds will
rank pari passu with the proposed senior secured credit facilities
in case of enforcement.

The rating actions follow the launch, on Nov. 12, 2010, of
EUR3.2 billion of senior secured notes at WAF.  S&P understand
that the proceeds of the issue will be used, together with EUR3.43
billion of new senior secured debt recently announced, to
refinance EUR3.86 billion of senior bank debt maturing between
2011 and 2014.  In addition, the proceeds will refinance
EUR684 million of second-lien debt due in 2014 and EUR1.5 billion
of high-yield notes due in 2015.  Part of the proceeds, together
with EUR316 million of cash, will be used to pay approximately
EUR300 million of transaction costs and EUR135 million of
derivative costs related to Wind's existing capital structure.
S&P understand that the proposed refinancing will be implemented
independently from the proposed acquisition by Vimpel-
Communications (Vimpelcom; BB+/Watch Neg/--) of the Weather group
of companies and its subsidiary Wind, and that Wind's capital
structure will be ring-fenced from the rest of the group.

"S&P believes Wind's credit prospects would benefit from its
improved liquidity once the transaction is completed, coupled with
its ongoing strong operating and cash flow performance," said
Standard & Poor's credit analyst Patrizia D'Amico.  "Pro forma for
the proposed transaction, Wind would in S&P's view have modest
debt amortization over the next five years, with a first sizable
maturity of EUR1.52 billion in 2017 only, removing any concerns
about medium-term liquidity."

In S&P's view, Wind's proposed refinancing, with a strong
favorable impact on its debt maturity profile, coupled with its
anticipation of ongoing solid operating performance, could result
in an upgrade over the next 18 months.  In particular, S&P
believes that the net debt-to-EBITDA ratio could improve to 4.6x
at the end of 2012 if Wind were to maintain EBITDA growth in line
with S&P's expectations of more than 2.0% per year.  When and if
S&P feel confident that such a sustainable improvement in leverage
is likely to be achieved by the company, the ratings could be
raised.

S&P will also monitor changes in Wind's shareholder structure.
Although it is too early to assess, S&P believes that the
integration of the company into a stronger financial entity should
support its credit profile.

The ratings could come under pressure in the event of lower-than-
we-anticipate growth in operating performance, and as a result, in
lower-than-S&P anticipate deleveraging.


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K A Z A K H S T A N
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BTA BANK: No Recovery Payments to Creditors in Third Quarter
------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that BTA Bank made no
recovery payments to creditors in the quarter ended Sept. 30
because cash raised didn't meet the threshold set out in the
bank's terms and conditions of the recovery units.

According to Bloomberg, the bank said in May that it wouldn't pay
on recoveries this year or next unless it received cash exceeding
KZT134 billion (US$908 million) and KZT103 billion, respectively.

Bloomberg notes BTA said on its Web site that in the quarter, the
bank received total cash recoveries of KZT17 billion.

                          About BTA Bank

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

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

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

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

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

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

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


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IFCO SYSTEMS: S&P Puts 'BB-' Rating on CreditWatch Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it placed its 'BB-'
long-term corporate credit rating on Netherlands-based IFCO
Systems N.V. on CreditWatch with positive implications.  At the
same time, S&P placed the 'BB-' issue rating on the group's
EUR200 million notes due 2016 on CreditWatch with positive
implications.  The placement follows an announcement by Australia-
based Brambles Ltd. (BBB+/Stable/--), a leading global player in
pallet and container pooling services, of its intention to acquire
IFCO.

"The CreditWatch placement reflects the high likelihood of us
raising the ratings on IFCO if the acquisition materializes, given
the higher rating on, and credit quality of, the acquiring
entity," said Standard & Poor's credit analyst Izabela Listowska.

Specifically, a successfully completed acquisition includes the
potential for an equalization of S&P's ratings on IFCO with those
on Brambles.  If the acquisition goes ahead, S&P understand that
IFCO would become a 95.9%-owned subsidiary of Brambles.  S&P
further understand that the remaining shares could be acquired via
a voluntary public tender offer to IFCO's shareholders, which was
announced on Nov. 15, 2010.  The acquisition is subject to
regulatory approvals.

"S&P expects to resolve the CreditWatch placement once the
proposed transaction is completed," said Ms. Listowska.


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N O R W A Y
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ELEKTRIM SA: In Talks to Settle Polska Telefonia Ownership Dispute
------------------------------------------------------------------
Nathaniel Espino at Bloomberg News reports that Deutsche Telekom
AG, Vivendi SA and Poland's Elektrim SA are holding talks to
settle an 11-year dispute about the ownership of mobile-phone
company Polska Telefonia Cyfrowa Sp. z o.o.

According to Bloomberg, Wociech Kozlowski, a lawyer with the
Warsaw office of Salans, which represents Vivendi, on Wednesday
said the companies told Poland's Supreme Court a settlement could
come by the end of the year and asked the judges to delay a
hearing on recognition of an arbitration award.

                      Bondholder Litigation

As reported by the Troubled Company Reporter-Europe on Oct. 25,
2010, the English Court of Appeal on Oct. 22 overturned Elektrim's
appeal against EUR185 million in damages and interest awarded to
the bondholders of Elektrim by the English High Court in July
2009.  The award compensates bondholders for Elektrim's failure to
pay a "Contingent Payment," negotiated as part of Elektrim's
financial restructuring in 2002.  Elektrim unsuccessfully
challenged the validity of the Contingent Payment, as well as the
amount.  Bingham McCutchen's London office represented the ad hoc
committee of bondholders of Elektrim and appeared for the
representative bondholder in the litigation.  The Oct. 22 judgment
comes after several years of extensive multi-jurisdictional
litigation and enforcement action in England, Poland, the
Netherlands, the United States and Germany.  The bonds were
restructured in 2002 and then accelerated in January 2005,
following a number of events of default.  Summary judgment was
obtained against Elektrim in September 2005 in the English High
Court.  The ad hoc committee initiated a series of proceedings in
Poland and England and undertook other measures to protect the
interests of bondholders and recover the amount due under the
bonds.  Elektrim made a payment of EUR525 million in October 2006,
but the payment was insufficient to redeem the bonds in full.
Elektrim entered composition bankruptcy proceedings in August 2007
and negotiations restarted with Elektrim's bankruptcy receiver to
secure payment of the shortfall required to redeem the bonds.
Associate Daniel Cohen assisted Harrison on the Bingham legal team
representing the bondholders.

Headquartered in Warsaw, Poland, Elektrim S.A. --
http://www.elektrim.pl/-- is a holding company with subsidiaries
engaged in energy and telecommunication services.


SHIP FINANCE: Moody's Assigns (P)'B1' Rating to Sr. Unsec. Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1 rating
to the proposed US$400 million worth of senior unsecured notes,
due in 2020, to be issued by Ship Finance International.  SFI's
corporate family rating is Ba3 and the outlook on the ratings is
stable.

Moody's understands that SFI intends to use the proceeds from the
notes to repay (i) outstanding amounts under its US$296.1 million
worth of unsecured bonds due in 2013; and (ii) bank loans of
approximately US$82 million.  The company will use the remainder
of the proceeds from the bond issuance to pay fees related to the
transaction and to increase its cash reserve.

                        Ratings Rationale

"The (P)B1 rating on the new notes, one notch lower than the CFR,
reflects their unsecured position within SFI's capital structure,"
says Marco Vetulli, a Moody's Vice President and lead analyst for
SFI.

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

To provide an overall indication of the credit quality of SFI,
Moody's has applied its Global Shipping Industry Rating
Methodology updated in December 2009.  SFI's Ba3 is strengthening
in its category, and is broadly in line with the indication
provided by Moody's Global Shipping Industry Rating Methodology
which is slightly higher at Ba1.

At this juncture, the Ba3 CFR compounds the benefit derived from
the company's main source of revenues represented by long-term,
time-charter and bareboat charter contracts -- which provide
stable and predictable cash flow generation -- and its significant
exposure to two counterparties (Frontline and Seadrill), which
generate about 80% of its cash flows.

The current outlook on SFI's ratings is stable.

According to Moody's, upward pressure on the ratings could result
if SFI achieves, on a sustainable basis, a retained cash flow/net
debt ratio at or approaching 20% and a debt/EBITDA ratio (all
ratios on adjusted basis) under 4.0x.

The ratings could come under downward pressure if SFI's RCF/net
debt ratio falls to single digits and the company's debt/EBITDA
ratio (all ratios on adjusted basis) increases towards 5.0x.
Weakened liquidity and/or any material increase in counterparty
risk would immediately exert downward pressure on the rating.

Moody's previous rating action on SFI was implemented on
April 7, 2007, when the company was assigned a Ba3 probability-of-
default rating and loss-given default rating of 50%.

Headquartered in Oslo, Norway, Ship Finance International Ltd is a
shipping company with a fleet of 71 vessels (including 11 new
vessels that will be delivered between 2010 and 2012).  The
company is primarily engaged in the ownership and operation of
vessels and offshore-related assets.  All of its vessels currently
in operation are chartered out under long-term contracts; as of
end September 2010, the average term of these charters was
11.7 years, for expected total charter payments of around
US$6.8 billion.


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


BANCA INTESA: Moody's Changes Outlook on 'D-' Rating to Stable
--------------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on D- bank financial strength rating and Baa3 long-term
local and foreign currency deposit ratings of Banca Intesa, a
subsidiary of Intesa Sanpaolo Group.  Banca Intesa's Prime-3
short-term local and foreign currency deposit ratings remain
unchanged.  Concurrently, Moody's Interfax Rating Agency affirmed
Banca Intesa's Aaa.ru long-term national scale rating.  National
scale ratings carry no specific outlook.

The change in Moody's outlook on the rating is primarily based on
pre-merger KMB Bank's audited financial statements for 2009
prepared under IFRS and signed on March 18, 2010 (KMB Bank was
renamed to Banca Intesa in January 2010 after its merger with its
sister ZAO Banca Intesa), as well as the merged Banca Intesa's
unaudited interim condensed financial statements for H1 2010
prepared under IFRS, reviewed by the auditors and signed on
September 14, 2010.

                         Rating Rationale

According to Moody's, the rating action reflects Banca Intesa's
(i) stabilizing asset quality, with 90+ days delinquent loans
comprising 11.2% of the gross loan book at H1 2010 (according to
management accounts), while the loan loss reserves are adequate at
9.51% as at the same date; (ii) improving profitability, with the
bank reporting after-tax profits of US$10.2 million under IFRS for
H1 2010 after being loss-making in 2009; and (iii) a total equity
to assets ratio of 17.4% at June 30, 2010, which provides a
sufficient buffer to absorb potential further losses, should they
occur.

The rating agency also notes that although Banca Intesa's
liquidity profile has always been characterized by a heavy
reliance on parental funding from the Intesa Sanpaolo Group, the
share of customer accounts increased to approximately a quarter of
total non-equity funding over the past two years, an improvement
over the bank's pre-crisis funding structure.

"The merger of Banca Intesa (previously KMB Bank) with its sister
bank ZAO Banca Intesa in January 2010 helped to maintain the
financial fundamentals of the combined entity at relatively good
levels, since ZAO Banca Intesa had benefited from a robust asset
quality and thick capital cushion," says Ms. Olga Ulyanova, a
Moody's Assistant Vice-President and the lead analyst for
Banca Intesa.  "Furthermore, the combination of the pre-merger KMB
Bank's high-yielding, but more risky, SME portfolio with its
sister bank's well-performing, albeit low-margin, corporate loan
book introduced better diversification to the merged bank's income
streams, bolstering its financial fundamentals during the crisis,
while also boding well for the bank's market franchise looking
forward," adds Ms. Ulyanova.

Moody's further explains that Banca Intesa's Baa3 long-term
deposit ratings incorporate two main elements: (i) Banca Intesa's
baseline credit assessment (BCA) of Ba3, which is derived from the
bank's D- BFSR; and (ii) the very high probability of support from
its parent bank, if needed.  These assumptions result in a three-
notch uplift of Banca Intesa's supported deposit ratings from its
BCA of Ba3.

Moody's last rating action on Banca Intesa was initiated on
January 26, 2010, when the rating agency affirmed the bank's
Baa3/P-3/ D-/Aaa.ru ratings with negative outlook.

Headquartered in Moscow, Russia, Banca Intesa reported IFRS total
assets of US$2.34 billion and total equity of US$406.6 million at
June 30, 2010.  The bank's net IFRS income for the six months
ended June 30, 2010 was US$10.2 million.  (The half-year data have
been recalculated based on the Central Bank of Russia's official
exchange rate of 31.1954 RUB/US$ established as at June 30, 2010.)


KAPITAL TOUR: Averts Bankruptcy After Bank Extends Loan
-------------------------------------------------------
Evgeniya Chaykovskaya at The Moscow News reports that the Kapital
Tour travel agency had to cease operations amid fears of
bankruptcy, leaving 15,000 travelers under threat of being
stranded abroad.

The Moscow News relates the company saw its bank accounts blocked
on Wednesday, and it announced that it could operate no flights on
Nov. 17 or 18.  But the freeze was soon lifted and the company's
loans were extended on Wednesday afternoon, saving thousands of
holidays from disaster, The Moscow News discloses.

The Moscow News notes Kapital Tour's CEO Inna Bilyutkova explained
that the company had failed to pay RUR45 million to Moscow Credit
Bank on an overdue loan.  The total debt by the operator is RUR1.3
billion, The Moscow News states.

According to The Moscow News, Vedomosti said on Wednesday
afternoon Moscow Credit Bank announced that it had decided to
"support Kapital Tour and unblocked the accounts in MCB and
Masterbank".

Kapital Tour is Russia's third-largest tour operator.


KUZBASSRAZREZUGOL OAO: Moody's Raises Corp. Family Rating to B3
---------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
for Kuzbassrazrezugol from B3 to B2.  At the same time, Moody's
Interfax Rating Agency, which is majority owned by Moody's, has
upgraded the national scale rating from Baa3.ru to Baa1.ru.  The
outlook on all ratings is stable.

                        Ratings Rationale

The rating upgrade reflects material improvement in operating
performance based on 2009 audited financial results which is
evidenced by increase in EBIT margin from 12.5% in 2008 to 21.7%
in 2009 driven by growing demand and rising prices for thermal
coal domestically and stable performance on the export market
supported by established sales channels.

In addition the FY 2010 operating results are expected to evidence
on-going positive developments on the base of stable volumes (all
volumes are contracted until the year end) and improving price
environment both domestically and globally.  Overall, the company
expects to reach the pre-crises level of production of 50 million
t.  by the end of 2010.

Furthermore, cost saving measures implemented in 2009 allowed KRU
to generate positive free cash flow of US$166 million and to
reduce the level of debt by RUR3.4 billion (app. US$110 million)
at the end of FYE 2009.  Moody's understands that the company
intends to keep the level of debt constant at 2010 level and to
further minimize interest expense and improve debt maturity
profile.

Moody's notes that KRU's credit profile has improved and the
company meets all the thresholds for a rating upgrade set
previously (ie the last credit opinion dated 28 August 2009) with
leverage decreased from 2.6x in 2008 to 1.8x in 2009, while
interest cover improved from 2.1x to 3.5x Y-o-Y.  Moody's
nonetheless notes that the relationship between KRU and
unconsolidated trading entity Krutrade may raise questions about
the arms-length character and transparency of the relationship
among these two entities, although Moody's understands that there
exists a contractual framework that guides this relationship.
Furthermore the information provided by KRU and the publication of
audited accounts at Krutrade AG give enhanced disclosure.  Moody's
also note that the financial debt at KRU Trade remains limited.

In July 2010 KRU repaid as scheduled a maturing US$150 million
Eurobond.  However Moody's comments that the company's liquidity
position remains to a large extent dependent upon uncommitted
credit facilities, though from relationship banks

For a rating upgrade, Moody's would expect a material
strengthening of the liquidity arrangements as well as a further
reduction in the financial leverage as evidenced by Debt/EBITDA
not exceeding 1.5-2.0x.

On the other hand the rating might be downgraded if the leverage
exceeds 3.0x on a sustainable basis.

The last rating action was on June 22, 2007, when Moody's assigned
B3 CFR and Baa3.ru NSR, all ratings with a stable outlook.

KRU is Russia's one of the largest coal producers and exporters
and the largest open pit mining company with coal production
volume of 46.1 mln t in 2009.

The company operates at 15 coal fields located at 11 open pit
mines.  The mining operations are supported by an industrial
infrastructure of three washing plants, 12 processing complexes
and transportation infrastructure.  All the assets are located in
the Kuzbass Basin (Kemerovo region, Russia).  In 2009 the company
reported revenue of US$1.6 billion and US$495 million in EBITDA.

The company is controlled by a small investor base of private
individuals.


* Fitch Affirms 'BB-' Long-Term Ratings on Republic of Karelia
--------------------------------------------------------------
Fitch Ratings has affirmed the Russian Republic of Karelia's Long-
term foreign and local currency ratings at 'BB-', respectively,
and National Long-term rating at 'A+(rus)'.  The Outlooks on all
three ratings are Stable.  The agency has also affirmed the
region's Short-term foreign currency rating at 'B'.

The rating affirmations reflect the gradual recovery of Karelia's
budgetary performance after temporary deterioration during the
2009 economic downturn, manageable albeit increasing direct risk,
and low contingent liabilities.  The ratings also factor in
Karelia's high refinancing risk and its tax concentration in the
primary sector, which was badly affected by the economic downturn.

The Stable Outlooks reflect Fitch's expectation of a gradual
improvement in operating performance in 2010 and 2011, underpinned
by recovery of the local economy and improvement in the
international markets for Karelia's major industries.

The regional economy has made a relatively fast recovery in 2010,
underpinned by its industrial components.  It suffered a
significant drop in value-added production during the crisis in
late 2008 and 2009.  Industrial output grew by 16.3% yoy in H110,
which exceeds the national average increase during the same period
(10.2%).  The administration forecasts gross regional product
growth will average 3%-4% in 2010-2012.

Based on actual budget results for the first nine months, Fitch
expects Karelia's budgetary performance to improve in 2010.  The
operating margin is likely to account for 5%-6% of operating
revenue in 2010 after a negative operating margin of -0.6% one
year earlier (2008: 9.2%).  The recovery of the budgetary
performance will be due to the growth of operating revenue and
control over operating expenditure.  The new administration
intends to attract additional resources from asset sales, which
should curb the deficit before debt variation in 2011 and 2012.
Fitch expects a deficit before debt variation of about
RUB2 billion in 2010, down from RUB2.9 billion one year earlier.

The local economy was severely affected by the recent economic
downturn and trade deterioration for its major industries.  A
sharp downturn in the metallurgy and mining sectors resulted in
the local economy declining by 14% during 2008-2009.  This led to
the tax base shrinking and tax proceeds dropping by 23% in 2009
compared to a year earlier.  The most significant fall was in
corporate income tax, which decreased by 71% in 2009 to
RUB1.3 billion from RUB4.3 billion in 2008.  The increase in
current transfers from the federal budget partially mitigated the
negative trend and total operating revenue decline was -4% yoy in
2009.

The republic's direct risk increased to RUB6 billion in 2009 from
RUB4.1 billion in 2008.  During the first ten months of 2010, this
grew to RUB7.4 billion, which is still manageable, accounting for
40% of Fitch's expected current revenue in 2010.  Despite the
moderate debt burden, Karelia's short-term maturities create
additional refinancing risk as about 47% of the republic's debt is
due to mature in 2011.  Fitch expects direct debt to increase to
RUB9.1bn by end-2011 (about 43% of expected current revenue).

The Republic of Karelia is located in the northwest of the Russian
Federation and accounted for 0.3% of Russia's GDP in 2008.
Karelia has 684,200 inhabitants, representing about 0.5% of the
national population.  The region has a strong industrial sector
with metallurgy, timber and paper production.


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


CAJA DE AHORRO: S&P Takes Various Rating Actions on Notes
---------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
all classes of notes in three Caja de Ahorro del Mediterraneo
transactions.  The three transactions are securitizations of loans
granted to Spanish small and midsize enterprises.

Specifically, S&P has:

* Lowered and removed from CreditWatch negative S&P's ratings on
  Empresas Hipotecario TDA CAM 3's class A2, B, and C notes,
  Ftpyme TDA CAM 4's class C notes, Empresas Hipotecario TDA CAM
  5's class A2, A3, B, and C notes; and

* Affirmed S&P's ratings on FT CAM 4's class A2, A3, B and D
  notes, and on EH CAM 5's class D notes.

The rating actions are based on S&P's review of each transaction,
including a credit and cash flow analysis.  S&P assessed the risk
related to a variety of critical features embedded in the current
portfolios, for example, industry and large obligor concentration.
The results of S&P's cash flow projections and concentration
analysis led us to lower its ratings on some classes of notes.

This table reports the summary information for each transaction as
per the last investor reports available.

                        90 to   Trigger   Credit     Top 10
                Pool    360     level     support    borrowers
                factor  days(1) (2)       (3)        (4)
                ------  ------- -------   -------    ---------
    EH CAM 3    46.86   0.49    0.99        2.53     25.92
    FT CAM 4    36.93   1.87    1.99        3.22     4.24
    EH CAM 5    57.93   2.17    4.03        2.2      9.04

(1) Delinquent loans between 90 and 360 days as a percentage of
    the current pool balance.

(2) Trigger level as a percentage of the original pool balance.

(3) Cash reserve as a percentage of the outstanding note balance.

(4) Top 10 borrowers as a percentage of the current pool balance.

EH CAM 3's delinquent loans are relatively low compared with the
market average.  However, in S&P's opinion, this is
counterbalanced by a relatively high level of concentration risk.
The backing pool consists of 347 borrowers with the top 10
borrowers representing one quarter of the total pool.

S&P has therefore observed that EH CAM 3 is particularly exposed
to the default risk of the largest positions.  The cash reserve
also currently stands at EUR8.9 million compared with the required
level of EUR14.625 million.

FT CAM 4 and EH CAM 5 are less concentrated pools, which comprise
6,542 and 5,373 loans respectively.  Reported default levels for
both transactions are high and the current levels of interest
deferral triggers are 1.99% for FT CAM 4 and 4.03% for EH CAM 5,
compared with the most junior tranche threshold levels of 4.85%
and 7.30%, respectively.

S&P's analysis indicates that compared with EH CAM 5, FT CAM 4 is
more seasoned with a lower pool factor and lower level of
delinquent loans.  Consequently, S&P has observed that FT CAM 4 is
able to maintain higher ratings levels on all classes of notes
than those ratings on EH CAM's notes.

                           Ratings List

      Ratings Lowered and Removed From Creditwatch Negative

Empresas Hipotecario TDA CAM 3, Fondo de Titulizacion de Activos
        EUR750 Million Mortgage-Backed Floating-Rate Notes

                            Rating
                            ------
         Class       To               From
         -----       --               ----
         A2          A+ (sf)          AAA (sf)/Watch Neg
         B           BB+ (sf)         BBB (sf)/Watch Neg
         A           B- (sf)          BB (sf)/Watch Neg

        FTPYME TDA CAM 4, Fondo de Titulizacion de Activos
              EUR1.529 Billion Floating-Rate Notes

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

EMPRESAS HIPOTECARIO TDA CAM 5, Fondo de Titulizacion de Activos
              EUR1.431 Billion Floating-Rate Notes

                            Rating
                            ------
         Class       To               From
         -----       --               ----
         A2          AA- (sf)         AAA (sf)/Watch Neg
         A3          AA- (sf)         AAA (sf)/Watch Neg
         B           BB+ (sf)         BBB (sf)/Watch Neg
         C           B- (sf)          BB- (sf)/Watch Neg

                         Ratings Affirmed

           TDA CAM 4, Fondo de Titulizacion de Activos
                EUR1.529 Billion Floating-Rate Notes

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


FONCAIXA ICO-FTVPO: Fitch Affirms 'CCsf' Rating on Class D Notes
----------------------------------------------------------------
Fitch Ratings has downgraded Foncaixa ICO-FTVPO 1, Fondo de
Titulizacion de Activos' class C notes and affirmed the other
classes of notes.  The rating actions are:

  -- Class A(G) (ISIN ES0337680013): affirmed at 'AAAsf'; Outlook
     Stable; assigned a Loss Severity (LS) Rating of 'LS-1'

  -- Class B (ISIN ES0337680021): affirmed at 'Asf'; Outlook
     Stable; 'LS-3'

  -- Class C (ISIN ES0337680039): downgraded to 'BBsf' from
     BBBsf'; Outlook Stable; 'LS-3'

  -- Class D (ISIN ES0337680047): affirmed at 'CCsf'; Recovery
     Rating of 'RR4'

Despite the relatively stable performance since closing, under
Fitch's revised RMBS criteria, the current credit enhancement
available to the class C notes (currently 1.1%) is insufficient to
maintain an investment grade rating.  Fitch expects the
transaction will continue to deleverage, but payment rates are
expected to remain low.  In Fitch's view, over the next several
years the CE growth will remain modest for the class C notes.

As a Spanish RMBS transaction that is fully collateralized by
Viviendas de Proteccion Oficial (VPO, Spanish Official Sponsored
Housing) loans, borrowers comprise first time and/or low-income
Spanish residents.  Subsidies are provided by national and/or
local authorities to borrowers in the form of down-payments and/or
partial monthly debt service payments.  For this reason and other
factors, including lower purchase prices, VPO loans have
historically outperformed the rest of the Spanish housing market.
This has been evidenced by lower arrears compared to the rest of
the Fitch-rated Spanish RMBS transactions.

As of the last interest payment date in September 2010, the
balance of loans more than 90 days in arrears was 0.16% of the
current portfolio.  Similarly, the pipeline of potential defaults
(loans between 6 and 12 months in arrears) remained at 0.05%.
Defaults are defined by the issuer as loans in arrears by more
than 12 months, and are provisioned for via excess spread
generated over the payment period.  As of the October 2010
collection period, the level of defaults was reported to be 0.04%.
While Fitch does not believe the performance trend will
deteriorate significantly, the agency has concerns that the
current level of excess spread (0.13% of current pool) may not be
sufficient to cover for any potential increases in default levels.
As a result, reserve fund draws may occur in the future.

The CE for classes A and B has risen to 8.84% and 4.42% from 8%
and 4%, respectively, at transaction close.  Further sequential
note amortization is expected to result in a further increase in
credit support for these notes, which is reflected in their
affirmation.  In addition, pro-rata amortization triggers and
interest deferral mechanisms available in the structure are not
expected to be breached over subsequent payment periods.


FONDO DE TITULIZACION: S&P Cuts Rating on Class D Notes to CCC-
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CCC- (sf)' its
credit rating on Fondo de Titulizacion de Activos UCI 16's class D
notes.  Additionally, S&P has lowered and placed on CreditWatch
negative its ratings on UCI 16's class B and C notes.  S&P has
also placed its rating on the class A2 notes on CreditWatch
negative.

The latest available portfolio information, released in
September 2010, shows continuing deterioration in the portfolio
performance.  S&P's analysis of this data leads us to expect a
significant portion of the current long-term arrears to roll into
default.  In turn, this may restrict payment of interest on the
class C and D notes because this transaction includes interest-
deferral trigger mechanisms.  UCI 16 has also fully depleted its
reserve fund in September 2010.  S&P understand that the payments
were used for amortizing the class A-2 notes.

In S&P's opinion, this has increased the probability of nonpayment
of interest on the class D notes at any point in the future as the
trigger for this class of notes has already been breached.  That
said, the trustee continues to allocate interest payments to this
class of notes.  At the same time, S&P considers that the ratings
on the class B and C notes are under pressure from the performance
of the collateral and the current levels of credit enhancement
available to them are no longer to maintain the current ratings.
As a consequence, S&P has taken the rating actions on the class B,
C, and D notes.

On the other hand, S&P understand from the allocation of interest
over the last interest payment cycles that if the fund has
sufficient proceeds, the interest deferral triggers embedded in
this transaction may not automatically defer payment of interest
due for more junior tranches upon a trigger breach.  Our
observation of the performance of the fund so far suggests to us
that this mechanism could lower the level of protection of the
class A2 and S&P has therefore put the class A-2 notes on
CreditWatch negative.

S&P will now perform a further credit and cash flow analysis in
order to resolve these CreditWatch placements.

S&P last took rating actions on UCI 16 in February 2010, when S&P
downgraded some of the junior classes because of a rapid increase
in long-term arrears.  Since then, S&P has observed a continued
deterioration in the credit quality of the underlying portfolio,
including a significant rise in delinquencies.  In the
September 2010 investor report, defaulted loans represented 6.21%
of the currently outstanding balance of the pool, compared with
3.13% when S&P carried out its last review in February 2010.

UCI 16 is a Spanish residential mortgage-backed securities
transaction.  It is backed by a pool of first-ranking mortgages
secured over owner-occupied residential properties in Spain and
pools of unsecured personal or second-lien mortgage loans, all
associated with first-ranking mortgages originated by Union de
Creditos Inmobiliarios, Establecimiento Financiero de Credito S.A.


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


SWEDBANK AB: Moody's Reviews 'D+' Bank Financial Strength Rating
----------------------------------------------------------------
Moody's Investors Service has placed under review for possible
upgrade Swedbank AB's A2 long-term debt and deposit rating, as
well as the D+ bank financial strength rating (mapping to a Baa3
baseline credit assessment) and the subordinated debt, junior
subordinated debt and tier 1 hybrid securities.  The A2 long-term
debt rating of Swedbank Mortgage AB for debt guaranteed by
Swedbank AB, was also placed on review for possible upgrade.  The
Prime-1 short-term ratings for Swedbank AB and Swedbank Mortgage
AB were affirmed.

                        Ratings Rationale

The review for possible upgrade reflects Moody's assessment of the
stabilization of asset quality in Swedbank AB's Baltic operations
as well as the bank's good capital and liquidity positions.
During the financial crisis, the asset quality of Swedbank AB's
Baltic operations deteriorated rapidly, with non-performing loans
(defined as gross impaired loans subject to individual impairment
+ >60 days overdue loans) as a percentage of gross loans
increasing to 14% YE 2009 from 3% (YE 2008).  In line with other
Nordic banks that have Baltic operations, Swedbank AB responded by
significantly reducing its exposure to the Baltic countries,
achieving around a 35% decrease in its Baltic loan portfolio since
Q4 2008.  In 2010, asset quality has started to stabilise (at
around 17%) and for the first time since Q4 2008, its Baltic
operations returned to profit in Q3 2010.  In stark contrast to
its Baltic operations, asset quality in the Swedish domestic
market, which represents over 80% of Swedbank's loan portfolio,
has been very strong throughout the crisis, with non-performing
loans being stable at around 0.2% - 0.3% of gross loans over the
past two years.

Moreover, Moody's notes that in accordance with Basel II
transitional rules, the bank's core capital levels have improved
to 10.8% as of end-September 2010, from 8.10% at YE 2008.  Moody's
notes that improved capitalization was mainly due to a SEK15
billion rights issue in 2009, as well as a 17% decrease in risk-
weighted assets, as a result of Swedbank's reduced exposure to the
Baltic countries.

The rating agency says that Swedbank AB's liquidity has also been
strengthened.  In fact, the bank has issued debt without a
government guarantee since July 2009 and has subsequently left the
support program in April 2010.  In addition, Swedbank AB has
progressively reduced its short-term funding sources and maturing
debt has been refinanced with longer maturities, lengthening the
average maturity of its market financing to 28 months from 14
months at YE 2008.

The review for the stand alone BFSR rating will focus on
evaluating the sustainability of recent positive asset-quality
developments in the Baltic countries as well as sustaining its
strong domestic asset quality.  Moody's notes that, an upgrade of
the BFSR will not necessarily lead to an upgrade of the long-term
debt and deposit ratings as these ratings currently include some
extraordinary support, which may be reassessed, especially in
light of the evolving EU regulatory framework concerning systemic
support for banking systems.

"Going forward, it will be important for Swedbank to continue to
execute its strategy of strengthening its earnings by focusing on
its core business lines and to continue to improve its funding
profile.  If successfully implemented and if impairments in the
Baltic countries diminish, upward pressure could be exerted on
Swedbank AB's ratings," says Janne Thomsen, a Moody's Senior Vice
President and lead analyst for Swedbank.  Moody's notes that
Swedbank's Swedish business continues to display good
profitability as well as strong asset quality and efficiency
levels.  The bank also continues to maintain a leading position in
the Swedish retail banking market.

Moody's previous rating action on Swedbank was in June 2010, when
the outlook for the A2 long-term debt and deposit rating as well
as for the BFSR was changed to stable from negative.

Moody's previous rating action on Swedbank Mortgage was in
June 2010, when the outlook for the A2 long-term debt rating was
changed to stable from negative.

Headquartered in Stockholm, Sweden, Swedbank AB reported total
consolidated assets of SEK1,846 billion (EUR201 billion) at the
end of September 2010.

Headquartered in Stockholm, Sweden, Swedbank Mortgage AB reported
total consolidated assets of SEK769 billion (EUR79 billion) at the
end of June 2010.


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


AMG PORTFOLIO: Goes Into Administration
---------------------------------------
AMG Portfolio Loan has been taken into administration with
PricewaterhouseCoopers as appointed administrators.

Bridging and Commercial reports that with GBP171.8 million of the
loan currently outstanding, a GBP330.8 million loan was originally
issued by the primary and special servicer Hatfield Philips in
April 2006.

According to the report, one of Europe's largest loan servicers,
Hatfield Philips said it had failed to find a "consensual way
forward with the borrowers" since the loan reached maturity on
April 15 of this year and announced it had filed for
administration with Mark Betten and Stephen le Page of PwC.

The report notes that Philip Byun, vice president of Hatfield
Philips, said: "The decision to file for administration was not
taken lightly.  After several months of negotiation, a consensual
way forward could not be achieved.  Our goal is to maximise the
recoveries for all lenders and in cooperation with our advisor
Cooke & Powell LLP and joint administrator Mark Batten and Stephen
le Page of PricewaterhouseCoopers CI LLP.  We will now be
implementing our strategy which will include driving substantial
business plans for the five buildings and exploring the prevailing
strong interest in these assets with third parties."

According to trade publication Property Week, some of the leases
on the City buildings have been altered and vacant possession may
not be available until as late as 2015, the report adds.

AMG Portfolio Loan is part of the Windermere VIII CMBS plc
securitisation, which matured earlier this year.  The AMG
portfolio includes five City of London properties, including 52-56
Leadenhall St, 49 Leadenhall, 109-114 Fenchurch St, 100 Fenchurch
St and 9-13 Fenchurch St.  Four of the buildings make up the
Leadenhall Triangle site, rumoured to become the new global
headquarters for Deutsche Bank.


BRADFORD & BINGLEY: Moody's Upgrades Ratings on Tier 1 to 'Ca'
--------------------------------------------------------------
Moody's Investors Service has upgraded one tranche of Bradford &
Bingley's Tier 1 securities to Ca from C.  All other outstanding
ratings of B&B were affirmed.  The rating action follows the
tender offer announced on November 9, 2010 by B&B for certain of
its hybrid securities.  The outlook is stable on all ratings.

                        Ratings Rationale

Marjan Riggi, VP/Senior Credit Officer and lead analyst for B&B
said, "the proposed cash offer is for most of its remaining Tier 1
and Upper Tier 2 securities with a book value of GBP255 million".
Moody's said that because of the discounted price, a full take up
of the offer by the investors would create additional post-tax
Core Tier 1 capital of approximately GBP143 million.  While coupon
and principal payments have been suspended on all B&B's
subordinated instruments, B&B will continue to make payments under
its subordinated guarantee for the GBP150 million 6.462%
Guaranteed Non-voting Non-cumulative Perpetual Preferred issued by
Bradford & Bingley Capital Funding LP which is one of the
securities being offered for tender.  As a result, Moody's has
upgraded the rating of this security to reflect their better rate
of recovery relative to other subordinated securities outstanding.
B&B's other subordinated debt and hybrids have suspended coupon
payments and are rated C with a stable outlook reflecting Moody's
expectation of very low recovery.  These securities do not benefit
from the government guarantee and have suspended all coupon
payments and are fully loss absorbing.  Moody's notes that the
Aa3/P-1/stable ratings of B&B senior debt are based on the UK
government guarantee and are not affected by this transaction.

Moody's last rating action on Bradford & Bingley was on
September 28, 2010, when the senior long term debt/deposit ratings
were upgraded to Aa3 from A2.  Subsequently on June 2, 2010, all
ratings of B&B were affirmed following the cash tender offer for
certain of its subordinated securities.

Bradford & Bingley is headquartered in Bingley, Yorkshire, and had
assets of GBP49 billion as of year-end 2009.


CRUSADERS: Winding Up Order Dismissed
-------------------------------------
A winding-up petition against Crusaders has been dismissed at
London's High Court, after the club went into administration, BBC
News reports.  The report relates that the case was adjourned a
week ago amid confusion over whether the club had paid its tax
debts.

According to BBC, the court was told the debts which led to the
petition order had since been paid.

As reported in the Troubled Company Reporter-Europe on
November 15, 2010, guardian.co.uk said that the uncertainty over
Crusaders' future was prolonged when a winding-up order was
adjourned for a week rather than dropped as the Welsh club had
predicted.  According to the report, the hearing provided the
first confirmation that the club have applied to go into
administration, with a lawyer for the administrators telling the
court that the debts owed to Her Majesty's Revenue & Customs and
other creditors had been paid.  However, the report related,
Matthew Smith, counsel for HMRC, refuted that, and the court
therefore refused to drop the winding-up petition as requested.

Joint administrators Peter O'Hara and Simon Weir were appointed to
handle the club's affairs.

The report notes Mr. O'Hara said: "We are currently pursuing a
number of options and are talking to interested parties and the
RFL [Rugby Football League] in the hope that a solution can be
found to the club's current difficulties which would enable it to
go forward and maintain rugby league in Wales."

Crusaders are a Welsh professional rugby league club based in
Wrexham, North Wales.


EDWARDS GROUP: S&P Raises LT Corporate Credit Rating to 'B+'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term corporate credit rating on U.K.-based supplier of vacuum
technology Edwards Group Ltd. to 'B+' from 'B'.  The outlook is
stable.

At the same time, S&P raised the issue rating on the
US$100 million super-senior revolving credit facility issued by
related entity Edwards (Cayman Islands II) Ltd. to 'BB' from
'BB-'.  The recovery rating on this RCF remains unchanged at '1',
indicating S&P's expectation of very high (90%-100%) recovery in
the event of a payment default.

S&P also raised the issue rating on the US$430 million first-lien
term loan issued by Edwards (Cayman Islands II) to 'B+' from 'B'.
The recovery rating on this loan remains unchanged at '3',
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.

Finally, S&P raised the issue rating on the US$185 million second-
lien payment-in-kind toggle loan to 'B-' from 'CCC+'.  The
recovery rating on this loan remains unchanged at '6', indicating
S&P's expectation of negligible (0%-10%) recovery in the event of
a payment default.

"The upgrade reflects Edwards' operating results in the second and
third quarters of 2010, which were significantly better than S&P
anticipated," said Standard & Poor's credit analyst Matthias Raab.

The upgrade also reflects S&P's view that the improving trends in
profitability and free cash flow are likely to be sustainable over
the next 18 months, supported by currently favorable industry
conditions and the company's ongoing restructuring activities and
growth initiatives--including expansion into new industries and
extensions of its existing products and services footprint.  "As a
result, S&P forecast further meaningful improvements in Edwards'
financial and liquidity profiles in S&P's updated base-case
assessment," added Mr. Raab.

In S&P's view, Edwards will continue to generate solid free cash
flows over the next 18 months, supported by further revenue growth
in its Semiconductor Equipment segment and higher revenues from
its growth initiatives and new product launches.

Although S&P anticipate that Edwards' financial and liquidity
profiles will improve further in the near term, rating upside is
limited at this stage.  This is primarily due to S&P's
understanding that Edwards' private-equity sponsors are likely to
pursue an aggressive financial policy, and that the company's
revenues and operating margins are likely to remain cyclical and
potentially volatile.  However, an upgrade could be supported by
more clarity on the company's long-term shareholder remuneration
policy and capital structure.

Rating downside appears limited in the near term, in S&P's view.
However, pressure on the rating could arise if Edwards's credit
measures were to deteriorate materially from current levels as a
result of large shareholder distributions, credit-negative changes
in the company's capital structure, or significant acquisitions
outside its existing products and services footprint.


LLOYDS BANKING: Private Equity Arm Mulls Spin-Off
-------------------------------------------------
Martin Arnold at The Financial Times reports that the private
equity arm of Lloyds Banking Group has for the first time outlined
plans for the UK buy-out investor to spin off from its banking
parent.

According to the FT, Darryl Eales, chief executive of Lloyds TSB
Development Capital, said it was expected to start raising money
from third-party investors by 2013.  LDC invests about GBP250
million each year from Lloyds's balance sheet into 15-20
companies, the FT discloses.

The FT says LDC has attracted political scrutiny because Lloyds is
more than 40% owned by the government, so a big chunk of the money
it is investing in its GBP2.3 billion private equity portfolio has
come from the taxpayer.

"Assuming the regulatory regime stays the same, it is likely in
five years we will be independent," the FT quoted Mr. Eales as
saying.  "If the regulatory environment is the same as it is now,
then it is inconceivable that we won't have third-party funds of
some kind by 2013."

Lloyds denied it had any plans to sell LDC, the FT notes.  But
there is growing pressure from regulators for banks to separate
risky activities such as private equity and hedge funds from their
state-guaranteed retail and commercial banking operations, the FT
states.

                     Stock-Market Flotation

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

                  About Lloyds Banking Group PLC

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


MCNAMARA CONSTRUCTION: Westminster Lodge Affected by Receivership
-----------------------------------------------------------------
Alex Lewis at St. Albans & Harpenden Review reports the
reconstruction of Westminster Lodge has gone bust, throwing doubt
on the future of the ambitious project, after Michael McNamara
Construction went into receivership.  The report relates that
Michael McNamara and Company is the district council's preferred
bidder for the contract.

According to St. Albans & Harpenden Review, Tory leader Julian
Daly said: "This will inevitably call into question the quality of
advice being provided in support of this contentious project.  We
will want to take a look at who was responsible for assessing the
financial strength of the tenders on behalf of the council and why
they appear to have failed to spot the weakness of McNamara & Co."

Council leader Robert Donald said a formal statement will be
issued, the report adds.

Michael McNamara Construction, established in 1948, has over 60
years' experience in the construction industry as a national and
international contractor.  The company has worked in various
sectors of the industry for Public Agencies, Government
Departments and Private Clients.

The company went into receivership on November 11, 2010.


NORTHERN ROCK: Moody's Upgrades Ratings on Lower Tier 2 to 'Ca'
---------------------------------------------------------------
Moody's Investors Service has upgraded the Lower Tier 2 securities
of Northern Rock Asset Management from Ca to Caa3.  In addition,
one group of NRAM's Tier 1 securities called the TONS have been
upgraded from C to Ca.  All other outstanding ratings of NRAM were
affirmed.  The rating actions follow the tender offer announced by
NRAM on November 9, 2010 for certain of its hybrid securities.
The outlook is stable on all ratings.

                        Ratings Rationale

Marjan Riggi, VP/Senior Credit Officer and lead analyst for NRAM
said "the proposed cash tender offer for NRAM's remaining Upper
Tier 2 and Tier 1 instruments with a total book value of
approximately GBP520 million is at a discount to par.  As a
result, a full take up of the offer would create an immediate net
accounting gain for NRAM of approximately GBP324 million which
would in effect increase Core Tier 1 capital while decreasing the
total amount of capital".  Moody's added that as of end-June 2010
reporting period, NRAM reported a positive net income of
GBP349.7 million in contrast to two consecutive losses of
-GBP257.5 million and -GBP724.2 million respectively as of of FYE
2009 and end-June 2009.  Moody's has upgraded the ratings of
NRAM's LT2 securities to Caa3 from Ca to reflect the slight
improvement in the underlying financial fundamentals of NRAM.

Moody's added that the tender offer also extends to the TONS which
have resumed coupon payments because of NRAM having met certain
capital thresholds as of the end-June 2010 reporting period.  As a
result, Moody's has upgraded the rating of TONS to Ca from C.  The
ratings of all other hybrid securities were affirmed at C and
incorporate Moody's expectation of lower recovery for these
instruments relative to the TONS and LT2 securities.  Coupons on
all hybrids other than TONS have been suspended indefinitely and
are fully loss absorbing while NRAM is in receipt of State Aid.
Moody's notes that the Aa3/P-1/stable ratings of NRAM's senior
debt are based on the guarantee from the UK government and are not
affected by this transaction.

Moody's last rating action on Northern Rock Asset Management was
on January 11, 2010, when the senior ratings for NRAM were
upgraded to Aa3 from A2.  Subsequently on June 2, 2010, all
ratings of NRAM were affirmed following the cash tender offer for
some its subordinated securities.

Headquartered in Newcastle-upon-Tyne, United Kingdom, Northern
Rock Asset Management had total assets of GBP69.8 billion as of
June 30, 2010.


OVERFINCH: Goes Into Administration
-----------------------------------
Overfinch has gone into administration.

Tom Webster at Auto Blog reports that the company has been hit by
"significant one-off non-trading costs which have severely
affected cash flow" over the last 18 months.

"We are continuing to trade the business while a purchaser is
sought and we are already in talks with a number of interested
parties," the report quoted joint administrator Lisa Hogg, from
Wilson Field in Sheffield, as saying.

According to Mr. Webster, Roger Hunt, senior partner at Clarion,
the legal firm advising the administrators, said: "Given
Overfinch's position as a world leader in its field and with its
valuable intellectual property rights, we are confident that the
business will be sold within the next few weeks, securing the
future of its 20 staff."

Overfinch was formed in 1975, is based in Surrey and has 15
distributors throughout the world including Asia and North
America.  Overfinch is the creator of Range Rovers for the stars.


* UK: Companies Tap Into Savings to Pay High-Interest Debts
-----------------------------------------------------------
Martin Flanagan at The Scotsman reports that new research shows
well over a third of companies with annual sales of GBP1 million
or more withdrew a "staggering" GBP2.43 billion from their deposit
accounts to help pay off higher interest rates on their debts.

According to The Scotsman, City bank Investec on Sunday revealed
that the average withdrawals made by 36% of companies surveyed who
had done this was GBP35,270.

"Many companies are receiving paltry returns on their savings, and
some have clearly decided to use the money to pay the more
expensive interest on their debts," The Scotsman quoted Jack
Jones, who produced the research, as saying.


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


* BOOK REVIEW: Vertical Integration, Outsourcing, and Corporate
               Strategy
---------------------------------------------------------------
Author: Kathryn Rudie Harrigan
Publisher: Beard Books
Softcover: 390 pages
List Price: US$34.95
Review by Henry Berry

The original title of Vertical Integration, Outsourcing, and
Corporate Strategy, first published in 1983, was Strategies for
Vertical Integration.  The updated title reflects the topic of
outsourcing that was discussed in the original material.  By the
early 1980s, when the book first appeared, the "old image of
vertical integration [was] outmoded," says the author.  The old
image saw vertical integration as "operations that are 100 percent
owned and physically interconnected and that supply 100 percent of
the firm's needs."  But this image of vertical integration rarely
fulfilled the expectations of a generation of business leaders.
Vertical integration was not only undesirable, it also could be
deceptive and shortsighted.  Vertical integration made many
companies too narrowly focused, complex, and inflexible and
burdensome to operate.  These are especially undesirable traits
in today's economy, which is characterized by market-share
fluctuations, lower start-up costs, fickle consumers, competition
from foreign corporations, the enhanced role of advertising and
marketing, and rapid technological developments affecting
corporate communication and distribution.

While vertical integration has become a much more risky aim in
today's diversified, decentralized economy, it nonetheless
continues to embody classic favorable business principles and
undisputed competitive advantages.  "The principle benefits of
vertical integration are economies of integration and cost
reduction made possible by improved coordination of activities,"
says the author.  But as Ms. Harrigan soon discovered from her
research, "firms sometimes undertake a more costly degree of
integration than may be required to cut costs."

Ms. Harrigan's text provides case studies of how companies
have implemented strategies for vertical integration.  These
strategies, which have ranged from the successful to the
unfortunate, cover sixteen business sectors, including petroleum
refining, pharmaceuticals, genetic engineering, personal
microcomputers, and the tailored-suits field of the clothing
industry.  The author looks at nearly two hundred companies
within these industries for guidance and lessons they offer.

In today's global economy, monopolies are discouraged by
government policies.  Thus, there are many more players, single
sources of raw materials can be unreliable, and corporations are
finding that it is more important to be responsive to changing
markets than to have a permanent identity or unvarying products.
As a corporate strategy, vertical integration can be successful if
implemented properly.  There is no monolithic model for vertical
integration; there is a large universe of possibilities with
respect to breadth, depth, and form.  With its expert analyses,
Ms. Harrigan's book is invaluable for high-stakes corporate
decision-makers who will sooner or later be faced with the
question of whether vertical integration is an appropriate
corporate strategy.

Kathryn Rudie Harrigan has received fellowships and other honors
and recognition for her business leadership, membership on boards
of directors, and scholarly work in the field of business.  She
has written several other books and numerous articles.


                            *********

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 * * *