TCREUR_Public/101125.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 25, 2010, Vol. 11, No. 233



CYPRUS AIRWAYS: Restructuring Plan Needed for Survival


DEUTSCHE HYPOTHEKENBANK: Fitch Lowers Ratings on Notes to 'Csf'
HECKLER & KOCH: S&P Junks Corporate Credit Rating From 'B-'
SKY DEUTSCHLAND: BaFin Finds Irregularities in Financial Documents
* GERMANY: Wants Private Creditors to Help Ailing EU Nations First


BKV: Sued by Alstom for Failing to Get HUF37BB Bank Guarantee


ALLIED IRISH: Government May Hold 99.9% Stake After External Aid
ANGLO IRISH: Ex-Chief's Wife Has Own Legal Representative
BANK OF IRELAND: Government Set to Take Majority Stake
IRISH NATIONWIDE: Wins Bid to Dismiss Bondholders Lawsuit
TBS INTERNATIONAL: Lenders Extend Forbearance Until Dec. 29

* IRELAND: Rescue Package May Amount to EUR85 Billion
* IRELAND: Bailed-Out Banks Should Be Sold, Central Bank Head Says
* IRELAND: ECB Shouldn't Act Before Banking Sector Reform


SIENA MORTGAGES: Moody's Puts Caa1 (sf) Rating on Class B Notes


* PORTUGAL: May Request European Bailout Following Ireland


HOME CREDIT: Moody's Revises Outlook on 'Ba3' Rating to Stable
LOCKO-BANK: Moody's Assigns 'B2' Rating to Senior Unsecured Debt
MOBILE TELESYSTEMS: Sets Junk Bond Sale Record
PROMSVYAZBANK OJSC: Moody's Assigns 'Ba2' Rating to Senior Debt


SEKERBANK TAS: Moody's Assigns 'D' Bank Financial Strength Rating

U N I T E D   K I N G D O M

ECHELON WEALTH: Investors Make EUR25-Mil. Claim Against IG Group
SCREEN EAST: Goes Into Liquidation
TATA STEEL UK: Fitch Changes Outlook to Stable; Affirms BB+ Rating
TAYLOR WIMPEY: S&P Assigns 'B+' Long-Term Corporate Credit Rating
THORNTON TRUST: Goes Into Insolvency; Projects in Limbo

* UK: Number of Insolvent Insurance Firms Drop to 6 in October


* Upcoming Meetings, Conferences and Seminars



CYPRUS AIRWAYS: Restructuring Plan Needed for Survival
Stelios Orphanides at Bloomberg News reports that Cyprus Finance
Minister Charilaos Stavrakis must cut staffing levels and improve
productivity as part of a reorganization.

According to Bloomberg, Mr. Stavrakis said the airline has a
future provided management and staff "agree on a realistic
restructuring plan to decrease this year's loss of EUR30 million
(US$40.5 million)" or "ideally" make a profit in the next 12

Bloomberg relates in August, Cyprus Airways, which is 70%
state-owned, reported a loss of EUR25.5 million in the first six
months of 2010, compared to a EUR3.5 million loss a year earlier.

Cyprus Airways is the national airline of Cyprus, a public limited
company with its head offices located in the capital of the
island, Nicosia.


DEUTSCHE HYPOTHEKENBANK: Fitch Lowers Ratings on Notes to 'Csf'
Fitch Ratings has downgraded Deutsche Hypothekenbank's
(Actiengesellschaft), Hannover 1999-1 fixed- and floating-rate

  -- EUR8.8m class B-1A (DE0002537883) downgraded to 'Bsf' from
     'BBsf'; Outlook Negative EUR8.2m class B-1B downgraded to
     'Bsf' from 'BBsf'; Outlook Negative

  -- EUR5m class B-2aA (DE0002537891) downgraded to 'Csf' from
     'CCCsf'; Recovery Rating revised to 'RR5' from 'RR4'

  -- EUR2m class B-2aB downgraded to 'Csf' from 'CCCsf'; Recovery
     Rating revised to 'RR5' from 'RR4'

  -- EUR5m class B-2b (DE0002537909) downgraded to 'Csf' from
     'CCCsf'; Recovery Rating is 'RR5'

The downgrades reflect the expected erosion of the first loss
piece (the unrated Class B-3 notes) and, subsequently, the first
loss allocation to the rated B-2 notes.  By August 2010, the first
loss piece had been reduced to EUR1.8 million from EUR9.3 million
at closing in November 1999.  There are currently 11 loans with an
aggregate balance of EUR3.4 million in foreclosure.  Due to the
second-lien nature of the collateral and the historical loss
severity of 100% across foreclosed loans, the workout of these 11
loans is expected to result in a shortfall on the B-2 notes.

At the August 2010 interest payment date, 18 loans with an
aggregate balance of EUR9.3 million were in arrears or in
restructuring agreements.  The arrears, amounting to 30% of the
remaining portfolio's balance, include the loans currently in
foreclosure.  The transaction is no longer considered granular and
a default of one of the remaining larger borrower groups would
increase the expected loss and, ultimately, the risk for the B-1
notes, significantly.

In August 2010, approximately 11.5% of the original issuance
remained outstanding.  The issuer has the right (but no
obligation) to redeem all outstanding notes once the current
issuance comprises less than 10% of the original amount.

HECKLER & KOCH: S&P Junks Corporate Credit Rating From 'B-'
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Germany-based defense contractor
Heckler & Koch GmbH to 'CCC+' from 'B-'.  The outlook is negative.

In addition, S&P lowered the issue rating on HK's EUR120 million
9.25% senior secured notes to 'CCC+' from 'B-', in line with the
corporate credit rating.  The recovery rating on the senior
secured notes is unchanged at '4', indicating S&P's expectation of
average (30%-50%) in the event of a payment default.

"The downgrade reflects HK's inability to meaningfully address the
refinancing of its EUR120 million 9.25% senior secured notes,
which mature in July 2011," said Standard & Poor's credit analyst
Jebby Jacob.  The situation is further exacerbated by the payment-
in-kind notes of a nominal value of EUR100 million, issued by HK's
indirect parent, Heckler and Koch Beteiligungs GmbH (not rated).
This is because any early repayment of the senior secured notes
would require a proportional reduction in the amount of HKB's PIK
notes, which ordinarily would mature in April 2013.

"S&P believes that HK's strategy to address this situation will be
to establish a facility on which the group can draw when its
senior secured notes mature," added Mr. Jacob.  S&P thinks that
HK's decision to pay out a dividend while its refinancing risk is
unresolved reflects its very aggressive financial profile.  For
the financial year ending Dec. 31, 2010, S&P anticipates that
discretionary cash flow will be negative or at best neutral,
because of the dividend payout and also because of working capital
build-up in connection with a Middle East project.  (This project
involves the delivery of a substantial order to certain Middle
Eastern countries.)

S&P views HK's financial risk profile as highly leveraged.  This
is underpinned by S&P's view of HK's very aggressive financial
policy, weak liquidity position, and high level of debt.  S&P
adjust reported debt by adding the value of HKB's PIK notes--which
S&P understand will be worth about EUR168 million by year-end
2010--after including accrued interest.

In S&P's view, there are uncertainties over HK's ability to
refinance its senior secured notes on their maturity date in July
2011.  In the coming months, S&P will closely monitor HK's
progress in its discussions with various parties on the
refinancing of these notes.  S&P could lower the ratings further
if S&P were to see a growing risk of the group's inability to
refinance the notes.

S&P could take a positive rating action if S&P was to become more
certain of HK's ability to refinance the senior secured notes.
However, any positive rating actions would also depend on S&P's
assessment of HK's liquidity position and financial policy at the
time of the refinancing.

SKY DEUTSCHLAND: BaFin Finds Irregularities in Financial Documents
Matthew Campbell and Sarah Rabil at Bloomberg News report that
Sky Deutschland AG said financial regulator BaFin had found
irregularities in the company's statements for 2007 and the first
half of 2008 that could result in fines or claims for damages.

Bloomberg relates Sky Deutschland on Monday said the regulator's
claims are "inapplicable" and will be legally reviewed, and have
no immediate effect on its balance sheet.

The company is in the midst of a turnaround plan under Chief
Executive Officer Brian Sullivan, Bloomberg notes.

According to Bloomberg, on Aug. 2, the company, which posted a
loss in 2009, said it expects a loss before interest, taxes,
depreciation and amortization in 2010 and that although 2011 will
be "significantly better," it "will still remain negative."
Bloomberg relates Mr. Sullivan said at a conference in Barcelona
last week that it has a "long way to go" before becoming

Bloomberg notes BaFin said the pay-TV operator overstated profit
as a result of incorrect accounting for the purchase of World Cup
soccer broadcast rights and didn't sufficiently point out credit

The regulator, as cited by Bloomberg, said at the end of 2007, the
company's value was overstated by EUR248.4 million because of
inaccurate accounting for some acquisitions.

Sky Deutschland AG, formerly known as Premiere AG, -- is a Germany-based company, which operates
a subscription television network in Germany and Austria.  Its
network is available via satellite, cable and Internet protocol
television.  Sky Deutschland's service offers channels to cater
for all audiences, including themed channels dedicated to
broadcasting feature films, live sporting events, foreign language
content, children's programming and interactive betting.  Sky
Deutschland's high definition television (HDTV) package shows
selected content derived from Sky Deutschland's other channels and
the Discovery Channel in HDTV format.  One of the Company's core
competencies is pay-per-view television.  The Company also markets
advertising space and promotional opportunities.  As of Dec. 31,
2009, Sky Deutschland AG operates through its eight domestic and
three foreign subsidiaries.

* GERMANY: Wants Private Creditors to Help Ailing EU Nations First
Matthew Brockett at Bloomberg News, citing the Financial Times
Deutschland, reports that Germany wants private creditors to help
over-indebted euro nations first, so that governments come to the
rescue only after banks and insurance companies have made their

Bloomberg says the plans envisage lengthening the maturities of
outstanding bonds as a first step in an emergency case.

Creditors would then have to negotiate with the borrower over the
conditions of repayment, the FTD reported, according to Bloomberg.
Bloomberg relates the newspaper said at the same time, euro states
could provide liquidity support, though only after a unanimous
decision to do so.


BKV: Sued by Alstom for Failing to Get HUF37BB Bank Guarantee
MTI, citing news portal, reports that Alstom, the French
conglomerate whose contract to supply underground trains to
Budapest was recently terminated, is suing BKV at a French court
for failing to obtain a bank guarantee worth HUF37 billion
(EUR134 million) which was stipulated in the contract.

According to MTI, the managing director of BKV, Istvan Kocsics,
terminated the contract for Alstom to supply the trains on October
20 after the French company failed to secure a permit from
Hungary's transport authority for his Metropolis trains, which
were to have run on the new fourth metro line as well as the
existing second line.

Both sides have held out the prospect of going back to the
negotiating table in spite of the contract's termination, MTI

Mr. Kocsis is to travel to Nantes on December 12 for the first
round of negotiations, MTI states.

As reported by the Troubled Company Reporter-Europe on Aug. 30,
2010, that the National Economy Ministry, as cited by MTI Econews,
said that the Hungarian government decided to set up a "bankruptcy
committee" in order to settle the finances of BKV.  MTI disclosed
the Ministry said the setting up the bankruptcy committee would be
the first step in consolidating BKV's financial position, and the
government intended to negotiate on the company's future and a
financial bailout package with the new city municipality.

BKV is Budapest's public transport company.


ALLIED IRISH: Government May Hold 99.9% Stake After External Aid
John Fraher at Bloomberg News, citing RTE, reports that Allied
Irish Banks Plc may be 99.9% state controlled after the Irish
government uses external aid to boost its capital levels.

According to Bloomberg, RTE said Irish lenders core tier 1 capital
level may be raised to 12% from 8%.

Bloomberg notes RTE also said the government may seek to share
losses with Allied Irish's subordinated bondholders, though senior
debt would be honored.

Allied Irish Banks, p.l.c., together with its subsidiaries -- conducts retail and commercial banking
business in Ireland.  It also provides corporate lending and
capital markets activities from its head office at Bankcentre and
from Dublin's International Financial Services Centre.  The Group
also has overseas branches in the United States, Germany, France
and Australia, among other locations.  The business of AIB Group
is conducted through four operating divisions: AIB Bank Republic
of Ireland division, Capital Markets division, AIB Bank UK
division, and Central & Eastern Europe division.  In February
2008, the Group acquired the AmCredit mortgage business in the
Baltic states of Latvia, Lithuania and Estonia.  In September
2008, the Group also acquired a 49.99% shareholding in BACB.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on July 23,
2010, Moody's Investors Service affirmed AIB's long-term bank
deposit and debt ratings.  These are A1 for long-term bank
deposits and senior debt, A2 for dated subordinated debt, Ba3 for
undated subordinated debt, B1 for cumulative tier 1 securities and
Caa1 for non-cumulative tier 1 securities.  Moody's said the
outlook on these ratings is stable.  AIB's bank financial strength
rating of D, which maps to Ba2 on the long term rating scale, with
a positive outlook was unaffected by the rating action.

ANGLO IRISH: Ex-Chief's Wife Has Own Legal Representative
Colm Keena at The Irish Times reports that the David Drumm
bankruptcy case has been told that the former banker's wife,
Lorraine, now has her own legal representative.

The Irish Times relates in a filing Monday, attorney Christopher
Panos of Boston said he is now representing Ms. Drumm.  According
to The Irish Times, Mr. Panos has requested that copies of all
orders, pleadings, etc in the case now be forwarded to him.  This
means both Mr. Drumm and his wife will be receiving copies of the
filings in the case, The Irish Times notes.

In a filing some weeks ago, Mr. Drumm, who stepped down as Anglo
Irish Bank chief executive in December 2008, included his wife
among the creditors to whom he said he owed money, The Irish Times

The Irish Times notes Mr. Drumm said he owed his wife US$210,347
(EUR154,509) arising from "various loans".  The Irish Times says
Anglo wants to question him about what income his wife has that
would permit such loans, her contribution to family expenses and
details about her employment.

As reported by the Troubled Company Reporter-Europe on Oct. 19,
2010, Bloomberg News said Mr. Drumm filed for bankruptcy, months
after the bank sought repayment of loans from him.  Bloomberg
disclosed Mr. Drumm, who resigned from the Dublin-based bank in
December 2008, listed assets and liabilities at US$1 million to
US$10 million on Oct. 14 in U.S. Bankruptcy Court in Boston.
Anglo Irish Bank's lawyers told a court in Dublin in December that
the bank is seeking repayment of loans valued at about EUR8
million (US$11.3 million) from Mr. Drumm, according to Bloomberg.
His liabilities are primarily business debts, Bloomberg said,
citing the Oct. 14 filing under Chapter 7 of the U.S. Bankruptcy

                       About Anglo Irish Bank

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

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Oct. 29,
2010, 2010, Standard & Poor's Ratings Services lowered its rating
on Anglo Irish Bank Corp. Ltd.'s nondeferrable dated subordinated
debt (lower Tier 2) securities to 'D' from 'CCC'.  The downgrade
of the lower Tier 2 debt rating reflects S&P's opinion that the
bank's exchange offer is a "distressed exchange" and tantamount to
default in accordance with its criteria.

BANK OF IRELAND: Government Set to Take Majority Stake
David Oakley at The Financial Times reports that the Irish
government is poised to take a majority stake in Bank of Ireland,
which will leave the Republic without a single significant lender
independent of state control.

According to the FT, the increased government stake is under
discussion as part of an EUR85 billion rescue package from the
European Union and International Monetary Fund, which aims to
restore confidence in Ireland's troubled economy and its ailing
banking industry.

The FT notes the details of the Irish rescue package are still
being finalized but will include a large capital injection into
Ireland's banks to lift their core tier one capital ratios -- a
measure financial strength -- up to 12%.

While the Irish government is keen to avoid a full nationalization
of Bank of Ireland, the amount of capital that will be pumped into
the bank will leave Dublin with a large stake, the FT says, citing
Irish government officials.  The government currently holds 36% of
the bank, the FT discloses.

The move will be a blow to Bank of Ireland, which, until recently,
looked to be the only lender likely to emerge from the financial
crisis without succumbing to majority state control, the FT

Headquartered in Dublin, Bank of Ireland -- provides a range of banking and
other financial services.  These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor, trustee,
life assurance and pension and investment fund management, fund
administration and custodial services and financial advisory
services, including mergers and acquisitions and underwriting.
The Company organizes its businesses into Retail Republic of
Ireland, Bank of Ireland Life, Capital Markets, UK Financial
Services and Group Centre.  It has operations throughout Ireland,
the United Kingdom, Europe and the United States.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Nov. 4,
2010, Moody's Investors Service assigned A3/P-2 bank deposit
ratings and a D+ bank financial strength rating to Bank of Ireland
(UK) plc.  Moody's said the outlook is stable.

IRISH NATIONWIDE: Wins Bid to Dismiss Bondholders Lawsuit
Lindsay Fortado at Bloomberg News reports that Irish Nationwide
Building Society won a bid to have a lawsuit filed by two
subordinated bondholders seeking the liquidation of the
nationalized property lender thrown out.

Bloomberg relates Judge George Mann said in his ruling Tuesday at
a London court that the bondholders, Satinland Finance Sarl and
Trimast Holding Sarl, didn't have a valid claim.  Bloomberg says
the investors are seeking to force a BNP Paribas SA unit, the debt
program trustee, to file a winding-up petition against Irish

According to Bloomberg, the investors sued after Irish Finance
Minister Brian Lenihan said Sept. 30 that holders of subordinated
bonds would be expected to share in the cost of bailing out Irish
Nationwide and Anglo Irish Bank Corp., the country's two
nationalized lenders.

The case was "bound to fail," Bloomberg quoted Judge George Mann
as saying.  "This was not, in my view, a promising action at all."

According to Bloomberg, Satinland Finance and Trimast Holding,
which hold 25.6% of Irish Nationwide's 13% lower Tier 2 bonds due
2016, filed the lawsuit against the lender and BNP Paribas Trust
Corp., the trustee for its subordinated bonds.  Irish Nationwide
asked for the case to be dismissed at a hearing last week.

In a statement after the lawsuit was filed, Bloomberg relates
Irish Nationwide said no event of default has occurred and the
terms of the bonds are being honored. The lender said it would
"vigorously defend the proceedings."

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.

TBS INTERNATIONAL: Lenders Extend Forbearance Until Dec. 29
TBS International plc said in a filing with the U.S. Securities
and Exchange Commission that various lender groups have agreed to
continue to forbear from November 15, 2010, to December 29, 2010,
from exercising their rights and remedies which arise from the
Company's failure to make principal payments when due.

The Company said it will not make principal payments due on its
financing facilities during the extended forbearance period, but
it will continue to pay interest on those facilities at the
default interest rate.  The Company and its lenders continue to
negotiate amendments to its various financing facilities that will
change the current payment schedules and cure any existing
defaults, and TBS believes that appropriate amendments to its
various financing facilities will be executed prior to the
expiration of the deferral.

The new forbearance agreements replace the Company's minimum cash
liquidity covenant during the forbearance period, providing that
the Company's cash balance as of the last business day of any week
or averaged weekly cash balance must not fall below US$15.0
million.  Each lender who consented to the forbearance agreements
will receive a consent fee equal to 0.05% of its total outstanding
loan amount.

                   About TBS International plc

Dublin, Ireland-based TBS International plc (NASDAQ: TBSI)
-- is a fully-integrated transportation
service company that provides worldwide shipping solutions to a
diverse client base of industrial shippers.

As reported in the Troubled Company Reporter on March 19, 2010,
PricewaterhouseCoopers LLP, in New York, expressed substantial
doubt about the Company's ability to continue as a going concern,
following its 2009 results.  The independent auditors noted that
the Company believes it will not be in compliance with the
financial covenants under its credit facilities during 2010, which
under the agreements would make the debt callable.  "This has
created uncertainty regarding the Company's ability to fulfill its
financial commitments as they become due."

* IRELAND: Rescue Package May Amount to EUR85 Billion
European Union officials estimate that a rescue package for
Ireland may amount to about EUR85 billion (US$114 billion), John
Fraher at Bloomberg News reports, citing officials familiar with
the talks.

According to Bloomberg, the people, who spoke on condition of
anonymity because the talks were private, said the European
Commission cited the figure as a preliminary estimate on a
conference call of euro-region finance ministers on Nov. 21.
Bloomberg says of the total, EUR35 billion would be earmarked for
banks and EUR50 billion to help finance the Irish government.

Bloomberg relates contagion is spreading through the euro region
as Ireland hammers out an aid package with the EU and the
International Monetary Fund to rescue its banking system.


Emma Ross-Thomas at Bloomberg News reports amid increasing
concerns over implementation of the rescue, Prime Minister Brian
Cowen said Monday night he would seek national elections early
next year after his government passes its 2011 budget.  The
announcement came hours after the Green Party said it would pull
out of the ruling coalition following the budget vote, Bloomberg
relates.  According to Bloomberg, the group said Mr. Cowen has
misled voters in negotiating the bailout.

* IRELAND: Bailed-Out Banks Should Be Sold, Central Bank Head Says
BBC News reports that Patrick Honohan, the head of the Republic of
Ireland's central bank, has said that country's top banks --
bailed out by the government at huge cost during the downturn --
should be sold.

BBC says Ireland is getting a European Union-led bail-out that may
total EUR90 billion.  The International Monetary Fund will also
contribute to the rescue package, BBC discloses.

BBC relates Mr. Honohan described the EU and IMF funding as "a
kind of a backstop for the banking system".

According to BBC, analysts said that the government would have to
accept a cut-price deal in the event of any sale.

BBC notes Mr. Honohan also said that plans for a so-called "bad
bank", known as the National Assets Management Agency (NAMA),
designed to buy up the bad debts of the big Irish banks, had not
worked as planned.  He did, however, say that it was "not
surprising" the plan had not yet worked given the scale of the bad
debts held by Irish banks, according to BBC.


Sharlene Goff and Patrick Jenkins at The Financial Times report
that full-blown nationalization of Ireland's banking system sounds
extreme, but that option is edging closer as Irish government and
regulatory officials thrash out the details of a bail-out with
officials from the EU and IMF.

Mr. Honohan, the FT says, has prepared the ground for tough action
-- including forced asset sales and mergers -- as payback for the
support the banks are set to receive.

According to the FT, people close to the bail-out talks now
believe the amount of capital that will be pumped into the banks
as part of the rescue package is likely to result in the
government taking majority control of those that it does not
already own, most notably Bank of Ireland.

The FT says taking control of the banks would give the government
more control over what is set to be a radical restructuring.

"Full nationalization would give the government far more room for
maneuver," said one banking analyst, according to the FT.  "I
would be staggered if it didn't nationalize at least Allied Irish

Full ownership of the banks would give the government the option
of cleaning up their balance sheets in one fell swoop by siphoning
off tens of billions of euros of toxic loans into a state-owned
"bad" bank -- much like the action taken to resolve the problems
at Northern Rock, the nationalized UK lender, the FT states.

The FT says the government is exploring a number of other
potentially less drastic options.  People involved in the
restructuring talks say that a combination of legislative
restrictions and rash government attempts to stabilize flare-ups
in the wake of the global crisis have made such extreme solutions
difficult to apply, according to the FT.

One likely solution is for the government to adopt a similar
strategy to that used to restructure Royal Bank of Scotland, the
British state-backed bank, the FT states.  The FT says this would
mean forcing Bank of Ireland and Allied Irish to split their
balance sheets into core and non-core divisions and sell-off or
run down large swaths of assets.

The FT relates another option would be to widen the scope of "bad
bank" Nama to take in a broader range of loans than the commercial
property that makes up most of its assets.  Alternatively, Ireland
could set up an insurance system modeled on the UK's asset
protection scheme to deal with residential mortgages and corporate
loans, the FT discloses.

* IRELAND: ECB Shouldn't Act Before Banking Sector Reform
Kati Pohjanpalo at Bloomberg News reports that Finnish Finance
Minister Jyrki Katainen said that the European Central Bank
shouldn't withdraw support measures including record-low interest
rates and emergency liquidity until Ireland has restructured its

"Once we have restructured the banking sector, then the
ECB can act again," Mr. Katainen said in an interview in Helsinki
on Monday, according to Bloomberg.  "The banking sector must be
restructured, otherwise help by anybody is impossible."

Bloomberg relates Ireland on Nov. 21 became the second euro nation
to seek a financial rescue package as the cost of saving its banks
threatened to trigger a repeat of the Greek debt crisis that
destabilized the single currency.  Renewed fiscal turmoil in the
region so far hasn't prompted the ECB to abandon plans to exit its
crisis measures, Bloomberg notes.

Mr. Katainen, as cited by Bloomberg, said failure to provide
Ireland with the financial support it needs would risk undermining
the euro.

ECB Executive Board member Gertrude Tumpel-Gugerell on Tuesday
said the bank has continued phasing out liquidity measures since
the third quarter, the report adds.


SIENA MORTGAGES: Moody's Puts Caa1 (sf) Rating on Class B Notes
Moody's Investors Service has assigned definitive long term
ratings to Italian RMBS notes issued by Siena Mortgages 10-7

  -- Aaa (sf) to the EUR595,000,000 Class A1 Residential Mortgage
     Backed Floating Rate Notes due 2070

  -- Aaa (sf) to the EUR400,000,000 Class A2 Residential Mortgage
     Backed Floating Rate Notes due 2070

  -- Aaa (sf) to the EUR1,666,900,000 Class A3 Residential
     Mortgage Backed Floating Rate Notes due 2070

  -- Caa1 (sf) to the EUR817,600,000 Class B Residential Mortgage
     Floating Rate Notes due 2070

Moody's has not assigned any rating to the subordinated EURO
106,626,000 Class C Residential Mortgage Backed Variable Return

                        Ratings Rationale

The ratings of the Notes take into account the credit quality of
the underlying mortgage loan pool, from which Moody's determined
the MILAN Aaa Credit Enhancement and the portfolio expected loss,
as well as the transaction structure and any legal considerations
as assessed in Moody's cash flow analysis.

The expected portfolio loss of 3.35% of the original balance of
the portfolio and the MILAN Aaa required Credit Enhancement of
12.5% served as input parameters for Moody's cash flow model,
which is based on a probabilistic lognormal distribution as
described in the report "The Lognormal Method Applied to ABS
Analysis", published in September 2000.

The transaction represents the ninth securitization of the Siena's
RMBS series, the seventh rated by Moody's.  The assets supporting
the notes, which amount to around EUR3,479.5 million, are prime
mortgage loans secured on residential properties located in Italy
originated by Banca Monte dei Paschi di Siena SpA ("BMPS"; A2/P-
1), Banca Antonveneta, Banca Toscana, Banca Agricola Mantovana and
Banca 121, all part of the Banca Monte dei Paschi di Siena Group
(Banca 121, BAM and BT merged in BMPS since 2002, 2008 and 2009
respectively; BAV merged in BMPS in 2008 and partly spun off in
2009).  The portfolio will be serviced by BMPS.

The key drivers for the MILAN Aaa Credit Enhancement number, which
is higher than other comparable prime Italian RMBS transactions,
are (i) the weighted average loan-to-value of 58.84%, which is in
line with other Italian RMBS transactions but with an higher than
average portion of loans with current LTV higher than 70% (39.6%),
(ii) missing data on the current/arrear status and, for a portion
of the portfolio (26%), on employment type and (iii) comparison
with the historical default static cohorts volatility.

The key drivers for the portfolio expected loss are (i) defaults
on global BMPS residential mortgage book, which have experienced a
substantial increase in the last periods and show high volatility
among vintages (ii) rolls rate derived from previous transactions
and (iii) benchmarking with comparable transactions in the Italian
market.  Moody's believes the assumed expected loss is appropriate
for this transaction.

The structure will benefit from a swap, provided by Royal Bank of
Scotland plc (Aa3/P-1), which guarantees a margin above notes'
index (135 bps) and from an amortizing cash reserve fully funded
at closing for an amount equal to 3% of the rated notes.
Liquidity in the transaction comes from principal to pay interest
and from the cash reserve, but given the replenishment of the cash
reserve will rank junior to payment of interest and principal on
Class B, if the cash reserve has been fully drawn under extreme
cases (such as servicer disruption) there may not be liquidity
available to cover interests on the rated notes; however, the
transaction documents contain certain mechanisms that mitigate
this weakness.

The rating addresses the expected loss posed to investors by the
legal final maturity of the notes.  In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal on or before the legal final maturity with
respect of the Class A1, Class A2 and Class A3 notes, and ultimate
payment of interest and principal on or before the legal final
maturity with respect of the Class B notes.  Moody's ratings only
address the credit risk associated with the transaction.  Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

The V-Score for this transaction is Low/Medium, which is in line
with the V-Score assigned for the Italian RMBS sector.  Only two
sub components underlying the V Score deviate from the average for
the Italian RMBS sector: i) the "Quality of historical data for
the Issuer/Sponsor/Originator" which is assessed at Medium, higher
than the Low /Medium sector's average, because the securitized
portfolio has mainly (around 83%) been originated in 2009 and
2010: BMPS's originated volumes during these years have almost
doubled the average origination volumes of the preceding five
years and eventually historical data could not represent the
portfolio future performance and ii) "Issuer/Sponsor/Originator's
Historical Performance Variability" because of the high volatility
among static cohorts performance and steep increase in defaults
during the last market downturn.  V-Scores are a relative
assessment of the quality of available credit information and of
the degree of dependence on various assumptions used in
determining the rating.  High variability in key assumptions could
expose a rating to more likelihood of rating changes.  The V-Score
has been assigned accordingly to the report "V-Scores and
Parameter Sensitivities in the Major EMEA RMBS Sectors" published
in April 2009.

Moody's Investors Service received and took into account a third
party due diligence report on the underlying assets in this
transaction and the due diligence report had a neutral impact on
the rating.

Moody's Parameter Sensitivities:

The model output indicated that Class A1, Class A2 and Class A3
would have achieved Aaa even if expected loss was as high as
10.05% (3.0x base case) assuming Milan Aaa CE at 12.5% (base case)
and all other factors remained the same.  Classes B would have
achieved Caa1 for this same scenario.

The model output further indicated that the Class A1 and Class A2
would have achieved Aaa with Milan Aaa CE of 20.0% (1.6x base
case), and expected loss of 3.35% (base case); Class A3 would have
achieved Aa1 and Class B B3 for this same scenario.

Moody's Parameter Sensitivity provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's-rated structured finance security may vary if certain
input parameters used in the initial rating process differed.  The
analysis assumes that the deal has not aged and is not intended to
measure how the rating of the security might migrate over time,
but rather how the initial rating of the security might have
differed if key rating input parameters were varied.  Qualitative
factors are also taken into consideration in the ratings process,
so the actual ratings that would be assigned in each case could
vary from the information presented in the Parameter Sensitivity


* PORTUGAL: May Request European Bailout Following Ireland
Emma Ross-Thomas at Bloomberg News reports that even as European
Union leaders said Ireland's bailout will stem contagion in the
euro region, investors are turning their attention to Portugal,
which hasn't cut government spending and has barely grown for a

"I think that we're likely to see that liquidity assault shift
from Ireland to Portugal," DeAnne Julius, a former Bank of England
policy maker who is now chairman of Chatham House, a U.K.-based
research group, said in an interview with Bloomberg Television on
Tuesday.  "The real issue will be if it then moves on to Spain,
which is of course is a more economically weighty country within
the euro zone."

There's a "substantial risk" that Portugal will have to follow
Ireland into a European rescue, said Ralph Solveen, an economist
at Commerzbank AG in Frankfurt, according to Bloomberg.  "They
have problems to reach their deficit goal this year, they have big
structural problems and therefore they will still be in the focus
of the market."

Bloomberg says Portugal's debt amounts to 76% of gross domestic
product, compared with 53% in Spain, 66% in Ireland and 116% in
Italy last year.  According to Bloomberg, Finance Minister
Fernando Teixeira dos Santos said on Nov. 17 spending by the
Portuguese government, which lacks a parliamentary majority,
continued to grow in the first 10 months of 2010.

The country has pledged to cut its deficit to 7.3% of GDP this
year and 4.6% in 2011, compared with last year's 9.3%, the fourth-
largest shortfall in the euro region, Bloomberg discloses.

It is "inevitable" that Portugal will seek help, said Stuart
Thomson, who helps manage US$110 billion at Ignis Asset Management
in Glasgow, according to Bloomberg.  Bloomberg notes Royal Bank of
Canada Europe Ltd. said it expects Portugal to request aid in the
first quarter of 2011 at "the latest."

Bloomberg notes that inevitability in the minds of investors was
reflected in the rising cost of insuring against a Portuguese
default.  Credit-default swaps tied to Portuguese debt jumped 28.5
basis points on Tuesday to 486, Bloomberg relates.


HOME CREDIT: Moody's Revises Outlook on 'Ba3' Rating to Stable
Moody's Investors Service has revised the outlook to stable from
negative on Home Credit and Finance Bank's Ba3 long-term local and
foreign currency deposit and debt ratings, and the D- Bank
Financial Strength Rating.  The banks' NP short-term local and
foreign currency deposit ratings, and its national scale
rating remain unchanged.

Moody's has also assigned a long-term rating of Ba3 to HCFB's
senior unsecured local currency debt instruments (four domestic
bonds: RUB3 billion due 2011, RUB4 billion due 2013, RUB5 billion
due 2014, RUB5 billion due 2015); the rating carries a stable
outlook.  Any subsequent senior local currency debt issuance by
HCFB will be rated at the same rating level subject to there being
no material change in the bank's overall credit rating.

The Ba3 rating was assigned to these debt instruments:

  -- Ru.Ruble3000 M Senior Unsecured Regular Bond Due 2011
  -- Ru.Ruble4000 M Senior Unsecured Regular Bond Due 2013
  -- Ru.Ruble5000 M Senior Unsecured Regular Bond Due 2014
  -- Ru.Ruble5000 M Senior Unsecured Regular Bond Due 2015

Moody's assessment is primarily based on HCFB's audited financial
statements for 2009 prepared under IFRS.  At the same time,
Moody's caution that Moody's assessment, in part, incorporates
information from HCFB's non-audited interim consolidated
statements under IFRS for H1 2010.

                        Ratings Rationale

The outlook change is driven by the stabilization and/or
improvements in the bank's financial fundamentals.  HCFB's
franchise value is stable, despite the fact that its main
competitors have materially scaled down their operations in 2008-
2009.  This allowed HCFB to rank as the number one player in
Russian point-of-sale business, with a market share of around 29%
(according to HCFB).  In terms of asset quality, loans overdue by
more than 90 days decreased to below 10% of gross loans at H1
2010, compared to 12-13% in 2007-2008.  Adding loans written off
to loans overdue by more than 90 days also signals an improvement
in asset quality: 16% at H1 2010, compared to 20% pre-crisis

The bank's Tier 1 capital ratio improved to a strong 36% at H1
2010 (YE2009: 36.4%, YE2008: 19.6%), supported by retained
earnings.  This very high capitalization level (fully composed of
Tier 1 capital) is likely to lead to dividend payments to PPF in
future.  Still, Moody's expect that the bank will remain highly
capitalized in the medium term, even taking into account an
acceleration in lending growth in 2011.

HCFB's profitability is very high, with an RoAA of 11.3% for H1
2010 (annualized), and 5.1% for full-year 2009.  The bank
channeled 17% of its pre-provision income into loan loss reserves
in H1 2010, compared to around 60% for full years 2009 and 2008.
HCFB's earnings structure is very granular, dominated by net
interest income (around 80%) and fees (around 20%).

HCFB's liquidity profile was adequate at H1 2010, with a cash
cushion of 23% of assets and access to funding from parent PPF
group (through a RUB21.5 billion committed line, fully
unutilized).  The current cash and money market assets cover
HCFB's debt repayments till mid-2011.  The bank has been
successful is raising new debt on the market since early 2009,
particularly through domestic bonds (two deals for a total of
RUB10 billion).  The funding structure has also become more
granular due to the increase in retail deposits to 26% of
liabilities at H1 2010 from around 10% in 2008.  To some extent,
the liquidity risk is mitigated by the relatively short-term
nature of HCFB's loan book, which amortizes by RUB5-6 billion
every month.  In case of need, HCFB can scale down new lending and
strengthen its liquidity profile relatively quickly.

Negative rating drivers for HCFB include the bank's high exposure
to credit risk in consumer lending, and exposure to refinancing
risk as it is wholesale funded.

The assigned Ba3 long-term global local currency debt rating is in
line with the bank's global local currency deposit rating, which
is in turn based on the bank's D- bank financial strength rating
(mapping to a baseline credit assessment of Ba3) and does not
incorporate any probability of systemic or parental support.

Headquartered in Moscow, Russia, Home Credit & Finance Bank
reported total assets of RUB88 billion (US$ 2.8 billion) at H1
2010.  The bank's net income stood at RUB5.1 billion for H1 2010,
up from RUB0.9 billion posted for H1 2009.

LOCKO-BANK: Moody's Assigns 'B2' Rating to Senior Unsecured Debt
Moody's assigns a B2 long-term global local currency debt rating
to Locko-bank's senior unsecured debt.  The rating carries a
stable outlook.  Any subsequent local currency senior unsecured
debt issuance by Locko-bank will be rated at the same rating level
subject to there being no material change in the bank's overall
credit rating.

The B2 rating was assigned to this debt instrument:

  -- RUB2,500M Senior Unsecured Regular Bonds due 2015

                        Ratings Rationale

The assigned rating is in line with Locko-bank's global local
currency deposit rating, which is in turn based on the bank's E+
BFSR mapping to a baseline credit assessment of B2.

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

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

MOBILE TELESYSTEMS: Sets Junk Bond Sale Record
Maria Levitov at Bloomberg News reports that OAO Mobile
TeleSystems is setting a record for Russia's junk bonds by selling
debt maturing in seven years, taking advantage of demand for
higher yields.

According to Bloomberg, MTS, as the company is known, received
investor orders for 1.6 times the RUR10 billion (US$320 million)
of bonds, which are ranked one level below investment-grade at BB+
by Fitch Ratings.  The securities are poised to rally when
they begin trading next week, Bloomberg says, citing Dmitry
Turmyshev, fixed income analyst at Moscow-based Trust Investment

The notes sold by MTS have no put option, Bloomberg states.  The
MTS notes were priced to yield 8.7%, 260 basis points more than
the 6.1% on the Moscow-based company's securities due in four
years and puttable in 2011, data compiled by Bloomberg show.

Bloomberg relates Mr. Turmyshev said the bonds may climb 30 to 40
basis points, or 0.3 to 0.4 percentage point, above their issue
price of 100 when they start trading next week.

Headquartered in Moscow, Mobile TeleSystems OJSC -- is a provider of mobile cellular
communications services in Russia, Uzbekistan, Turkmenistan and
Armenia and Ukraine.  During the year ended December 31, 2008, the
Company had a subscriber base of 91.33 million (64.63 million in
Russia, 18.12 million in Ukraine, 5.65 million in Uzbekistan, 0.93
million in Turkmenistan and 2.02 million in Armenia).  In addition
to standard voice services, the Company offers its subscribers
value added services, including voice mail, short message service
(SMS), general packet radio service (GPRS), augmented by enhanced
data rates for GSM evolution (EDGE), high-speed downlink packet
access (HSDPA), and various SMS- and GPRS/EDGE/HSDPA-based
information and entertainment services (including multi media
message service (MMS)).  It also offers its subscribers the
ability to roam automatically throughout Europe and in much of the
rest of the world.

                           *      *      *

MTS is rated Ba2 by Moody's Investors Service and BB by Standard &
Poor's, both two levels below investment grade.

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

These debt instruments were assigned ratings:

  -- RUB4,500M Senior Unsecured Regular Bonds due 2012 - Ba2
  -- RUB5,000M Senior Unsecured Regular Bonds due 2013 - Ba2

                        Ratings Rationale

The assigned rating is in line with Promsvyazbank's global local
currency deposit rating, which is in turn based on the bank's D
BFSR mapping to a baseline credit assessment of Ba2.

Promsvyazbank's BFSR is underpinned by (i) the bank's entrenched
market franchise in the corporate segment, along with some
diversification of its business to SME and retail segments, (ii)
its significant geographical coverage, with a sizeable portion of
business volume attributable to the regional network, (iii)
favourable liquidity profile and sound liquidity management, and
(iv) the bank's well-diversified operating income streams and
sound cost management.  The factors constraining Promsvyazbank's
ratings are: (i) the bank's historically modest capital levels,
(ii) the deterioration of its asset quality during the crisis
times, which continues to exert negative pressure on the bank's
bottom-line profitability and capital levels, and (iii) the
significant single-name concentration of the bank's loan book.

Headquartered in Moscow, Russia, Promsvyazbank reported IFRS total
assets of US$14.0 billion and total equity of US$1.4 billion at
June 30, 2010.  The bank's net IFRS profit for the six months
ended June 30, 2010 was US$18.0 million.


SEKERBANK TAS: Moody's Assigns 'D' Bank Financial Strength Rating
Moody's Investors Service has assigned first-time ratings to
Sekerbank T.A.S.  The bank was assigned a bank financial strength
rating of D, local currency deposit ratings of Ba1/Not Prime and
foreign currency deposit ratings of Ba3/Not Prime.  In addition,
Moody's assigned long-term and TR-1 short-term Turkish
national scale ratings to the bank.  The outlook on foreign
currency deposit ratings is positive, while all the other ratings
carry a stable outlook.

                        Ratings Rationale

The D BFSR, which maps to a Baseline Credit Assessment of Ba2,
represents the bank's stand-alone financial strength and is driven
by Sekerbank's good regional franchise, especially in the
small-and medium-sized enterprises segment.  At the same time,
Moody's notes that the BFSR is also supported by the bank's
satisfactory profitability despite comparatively weak efficiency
partially due to focus on labor intensive small and micro
business, high capitalization levels and relatively low market
risk appetite.  The rating also takes into account the bank's
comfortable liquidity profile, as well as its high exposure to
government securities, a common feature in the Turkish banking
system, certain asset quality challenges and weak earnings
stability as the more recent business development of retail
activities are currently unprofitable.

Sekerbank is an expanding, regional Turkish bank, with a market
share of around 1.3% of total banking sector assets and was
established in 1953 as the Sugar Beet Co-operative Bank.  The
bank's current business activities are mainly focused on the micro
and SME segments in Anatolia with an increasing emphasis on
expanding into the retail and corporate sectors in a fast-
developing and growing market.  Sekerbank's liquidity and funding
profile is sound, with a strong customer deposit base as well as
longer-tenured funds -- either from the respective European Union
or from international development banks.  Overall, Moody's
observes that the bank displays an acceptable asset quality,
although high NPLs in the recently developed business segments or
retail and corporate lending illustrate the challenges to adapt
the business model and risk management requirements in a fast-
evolving, highly competitive and dynamic Turkish banking market.

Moody's adds that the bank's Ba1/Not Prime global local currency
deposit ratings reflect a one-notch systemic support uplift.
Moody's regards Turkey as a high support country, and assesses a
moderate likelihood of systemic support for Sekerbank, reflecting
the rating agency's view of the bank's limited importance to the
national financial system, as well as its relevance for the local
financial system.

Sekerbank's Ba3/Not Prime foreign currency deposit ratings are
derived from the local currency deposit ratings and are capped by
Moody's Ba3/Not Prime ceiling for such deposits in Turkey.

Moody's believes that Sekerbank pursues a sound business strategy,
given the prospects for further growth in commercial and retail
lending in Turkey.  Positive pressure could be exerted on the
bank's BFSR over the medium term by improvements in asset quality,
efficiency, and deepening of the retail franchise in an improving
operating environment, coupled with successful diversification in
the bank's business segments.

Conversely, negative pressure could be exerted on Sekerbank's
ratings if competitive pressures constrain further franchise
development or lead to a material decline in profitability or
asset quality metrics.  In addition, Moody's notes that the
ratings could also be negatively affected if the bank's capital
position fails to keep pace with its robust asset growth, although
current capitalization levels are sound.

Headquartered in Istanbul, Turkey Sekerbank's assets (audited)
totaled TRY10.8 billion (US$6.8 billion) at the end of June 2010.

U N I T E D   K I N G D O M

ECHELON WEALTH: Investors Make EUR25-Mil. Claim Against IG Group
RTTNews reports that IG Group Holdings plc said its wholly owned
subsidiary, IG Markets Limited, has been served with a claim
issued in the High Court in relation to the insolvency of Echelon
Wealth Management Ltd., a former client of IG Markets.

RTTNews relates that three former clients of Echelon are seeking
to recover damages from IG Markets in a sum in excess of EUR25

According to RTTNews, IG considers the claim to be speculative and
without foundation and will defend itself vigorously.  It is not
expected that this matter will have any material impact on the

Echelon Wealth Management Ltd. is a Glasgow-based derivative

Echelon Wealth Management Ltd. was placed into provisional
liquidation on October 17, 2008.  Blair Nimmo of KPMG was
appointed Provisional Liquidator.  This appointment was
subsequently recalled and Stephen Cork and Anthony Spicer of Smith
& Williamson were appointed joint liquidators on November 11,

Annette Menzies and Eileen Blackburn were then appointed Joint
Liquidators of Echelon Wealth Management Limited at a meeting of
creditors held on July 22, 2009, at which Stephen Cork and Anthony
Spicer of Smith & Williamson were removed as Joint Liquidators.

SCREEN EAST: Goes Into Liquidation
BBC News reports that Screen East, a government-backed film
agency, has gone into liquidation.  Paul Gregson, of Bulley Davey,
Peterborough, has been appointed liquidator.

BBC News relates that Screen East went insolvent in September.
The company had assets of about GBP4 million and debts of about
GBP4.5 million.

According to BBC News, Mr. Gregson said Screen East's employees
had been made redundant in September.

"The liquidation was in October. It is very difficult to give any
time scale. Clearly a lot needs to be looked into," he said, BBC

The UK Film Council said it is concerned about these developments
and the possible impact they may have on film in the East of
England, the report notes.

"While we are unable to comment further at this time, the UK Film
Council is working to assess and, as far as possible, minimize the
effect of Screen East's closure on film activity in the region,"
the council said, according to BBC News.

Based in Norwich, Screen East was the Regional Screen Agency for
the East of England.  It was responsible for promoting the east of
England as a location for film and TV productions.

TATA STEEL UK: Fitch Changes Outlook to Stable; Affirms BB+ Rating
Fitch Ratings has revised the Outlook on Tata Steel Limited's and
Tata Steel UK Holdings Limited's (formerly Tata Steel UK Limited)
Long-term foreign currency Issuer Default Ratings to Stable from
Negative, while affirming the ratings at 'BB+' and 'B+',
respectively.  The agency has also revised the Outlook on TSL's
National Long-term Rating to Stable from Negative while affirming
the rating at 'AA(ind)'.  Fitch has also assigned a 'BB-' rating
to TSUKH's secured bank facilities aggregating approximately
GBP3.53bn with a recovery rating of 'RR3'.  A full list of rating
actions on the two companies and their respective instruments can
be found at the end of this release.

The revisions in Outlook reflect the improvement in performance of
TSUKH's operations during 1HFY11 (April -September) in line with
Fitch's expectations, resulting in greater certainty of the
consolidated entity deleveraging below 4x during FY11.  The
revisions in Outlook also reflect the additional financial
flexibility provided by TSUKH's recent refinancing of its secured
facilities with longer maturity debt with back ended repayments.
The European operations have reported EBITDA profits for the past
three quarters (Q4FY10 to Q2FY11) after recording EBITDA losses
from Q4FY09 to Q3FY10, reflecting the sensitivity of the
operations to raw material price volatility and the relatively
slower improvement in demand in the European markets.  Fitch
expects TSUKH's profitability to remain volatile; however, the
value added nature of the product profile and greater discipline
in use of production capacities is likely to mitigate the risks

The Indian operations of TSL on the other hand, continue to remain
robust as reflected in its performance in Q1FY11 and Q2FY11 with
EBITDA margins of 44.5% and 36.9% respectively.  The positive
outlook for Indian steel demand and TSL's value added product
profile are expected to provide the consolidated entity sustained
and high levels of EBITDA.  The brownfield expansion will aid this
further from FY12.

The agency continues to take a consolidated view of TSL in line
with its Parent and Subsidiary Rating Linkage methodology with
TSUKH's rating benefiting from potential parental support.  Fitch
notes that TSL, as part of the new secured facilities, has
provided a support undertaking to TSUKH thus making the support
explicit though this remains a credit neutral event from Fitch's

In addition, the FC IDR and the National Ratings of TSL continue
to benefit from a one notch uplift on account of the potential
support from the Tata group.  Fitch has also reviewed the ability
of the Tata group to provide support to TSL and in the context of
potential group support, continues to draw comfort from the
strategic importance of TSL to the group.  Any weakening of
linkages between the group and TSL, and/or the group's inability
to provide support would likely affect the ratings negatively.

The ratings continue to reflect the benefits of strong liquidity
maintained by TSL and TSUK at all times with consolidated cash and
bank balances of US$1,437 million as at September 30, 2010 and
access to undrawn lines of US$1,231 million.  Fitch notes that the
increase in raw material prices and its consequent volatility has
had an impact on the profitability and working capital needs of
TSUKH during 2QFY11.  However, with limited repayments in the next
4.5 years and value added nature of its product profile, the risks
of cash flow mismatches remain low.  While the new debt facilities
at TSUKH provide leeway for additional capex as part of the
revised covenants, the majority of the capex remains focused on
its India operations which are expected to be hugely value
accretive.  The brownfield expansion at Jamshedpur for an
additional 2.9 metric tonnes per annum capacity is on track for
completion from the last quarter of FY12.  The expenditure on its
greenfield project in Orissa presently remains limited and is
expected to pick up only in the next two to three years.

The positive rating guideline for the standalone FC IDR of TSL is
net financial leverage below 2.5x on a sustained basis coupled
with sustained profitable operations at TSUKH, whereas for
National ratings, the guideline for an upgrade is net financial
leverage of below 3x on a sustained basis.  Net financial leverage
of more than 4x on a sustained basis may warrant a notch downgrade
on both the national and the international ratings.

TSL is the flagship of the Tata group and one of the 10 largest
steel producers in the world with the Indian operations being the
dominant contributor to consolidated EBITDA

Full list of rating actions for Tata Steel:

  -- Long-term IDR affirmed at 'BB+'; Outlook Revised to Stable
     from Negative;

  -- National Long-term rating affirmed at 'AA(ind)'; Outlook
     Revised to Stable from Negative;

  -- Commercial paper/short-term debt of INR9.75bn affirmed at

  -- Non-convertible debenture INR30bn affirmed at 'AA (ind)';

  -- Non-convertible debenture of INR20bn affirmed at 'AA(ind)';

  -- National Long-term debt of INR65bn affirmed at 'AA(ind)';

  -- Non-convertible debenture of INR12.5bn affirmed at 'AA(ind)';

  -- Fund-based cash credit limits of INR10.6bn affirmed at

  -- Non-fund based limits of INR23.4bn affirmed at 'AA(ind)';

  -- Fund-based limits of INR7.25bn affirmed at 'F1+(ind)'; and

  -- Non-fund based limits of INR7.6bn affirmed at 'F1+(ind)'.

Full list of rating actions for Tata Steel UK Holdings Limited:

  -- Long-term IDR affirmed at 'B+'; Outlook Revised to Stable
     from Negative; and

  -- Secured bank facilities aggregating approximately GBP3.53bn
     assigned at 'BB-' with a recovery rating of 'RR3'.

TAYLOR WIMPEY: S&P Assigns 'B+' Long-Term Corporate Credit Rating
Standard & Poor's Ratings Services said that it assigned its 'B+'
long-term corporate credit rating to U.K.-based housebuilder
Taylor Wimpey PLC.  The outlook is negative.

At the same time, S&P assigned an issue rating of 'B+' to Taylor
Wimpey's proposed GBP250 million senior unsecured notes, along
with a recovery rating of '4', indicating S&P's expectation of
average (30%-50%) recovery prospects in the event of a payment

"The ratings on Taylor Wimpey reflect S&P's assessment of the
company's business risk profile as fair and its financial risk
profile as aggressive," said Standard & Poor's credit analyst
Maxime Puget.

The company's business risk profile is constrained by the high
level of cyclicality in the housebuilding industry, which
translates into highly volatile operating margins.  The sector is
currently facing unfavorable market conditions in the U.K. and the
U.S., mainly due to the low availability of mortgages and fragile
consumer confidence.  However, these risks are mitigated, in S&P's
view, by the company's leading market position in the U.K.; an
improved operating performance resulting from stronger pricing and
contained land and building costs; and a solid order book that
should help to stabilize revenues in the near term.

Taylor Wimpey's financial risk profile is negatively affected by
the large refinancing risk related to the company's debt
maturities.  S&P believes that the company's liquidity position
could be weakened if the refinancing is not concluded within the
next six to eight months.  The company also has a highly leveraged
capital structure and a widening pensions deficit, as well as
volatile cash flow generation.  However, S&P takes a positive view
of the currently adequate liquidity position; the large amount of
headroom under the debt covenants; and the deleveraging actions
that the company has taken since 2009.

"In S&P's view, there is a significant risk for the stability of
the rating should Taylor Wimpey be unable to refinance its debt
maturities before July 2011," said Mr. Puget.  "In addition, the
company's credit metrics are likely to remain weak over the next
12 months because S&P does not expect any substantial recovery in
the U.K. and U.S. housing markets in 2011."

S&P is likely to lower the rating if the company does not
refinance its debt before July 2011 at the latest, or if the
company does not manage its debt leverage very carefully while
acquiring new land.

S&P could consider raising the rating if the company were to
successfully conclude the debt refinancing within the next six to
eight months and show strong and sustainable improvements in its
financial profile.  S&P would also view positively clear evidence
of a solid recovery in the U.K. housing market, and the successful
execution of the company's plan to divest its U.S. operations.

THORNTON TRUST: Goes Into Insolvency; Projects in Limbo
The Portadown Times reports that the Thornton Trust is going into
insolvency, leaving a number of projects in Portadown in limbo.
These include projects at High Street -- among them the retail
premises next to the High Street Mall and the former Wellworth's
building -- as well as a block of flats in Thomas Street, and
other reported future developments.

The Portadown Times says creditors of the trust, set up by the
late Mr. Robin Thornton for the benefit and improvement of the
town, gathered for an insolvency meeting in Newry on Friday.

The Portadown Times relates the assets of the trust are being
taken over by a financial institution, which will decide on the
future of the unfinished projects.

According to The Portadown Times, a source close to the trust said
that the insolvency was "sad, but a symptom of today's property
collapse" and that the business scene was very different from the
days of Mr. Thornton, a quiet, almost reclusive, man who owned a
lot of property in Portadown.  "His driving force was for the good
of the town," the source added, The Portadown Times notes.

Portadown-based Thornton Trust is charitable organization.

* UK: Number of Insolvent Insurance Firms Drop to 6 in October
Experian said in a report that there has been a general decrease
in the number of insurance companies that have to become insolvent
in the past year, says. reports that the Experian study found that
there was a fall in the percentage of insurance businesses that
were failing from the level reported in October 2009.

The Experian study, according to, also
revealed that the amount of insurance firms becoming insolvent in
October this year had fallen to 6 from the 18 insolvencies in the
same period in 2009, although the level of the business population
failing has remained the same, at 0.13 per cent.


* Upcoming Meetings, Conferences and Seminars
Nov. 29, 2010
     17th Annual Distressed Investing Conference
        The Helmsley Park Lane Hotel, New York City
           Contact: 1-903-595-3800;

Dec. 9-11, 2010
     Winter Leadership Conference
        Camelback Inn, a JW Marriott Resort & Spa,
        Scottsdale, Ariz.
           Contact: 1-703-739-0800;

Dec. 2-4, 2010
     22nd Annual Winter Leadership Conference
        Camelback Inn, Scottsdale, Arizona
           Contact: 1-703-739-0800;

January 26-28, 2011
     TMA Distressed Investing Conference
        Aria Las Vegas

Jan. 27-28, 2011
     Rocky Mountain Bankruptcy Conference
        Westin Tabor Center, Denver, Colo.
           Contact: 1-703-739-0800;

Feb. 3-5, 2011
     Caribbean Insolvency Symposium
        Westin Casuarina Resort & Spa, Grand Cayman Island
           Contact: 1-703-739-0800;

Feb. 24-25, 2011
        Four Seasons Las Vegas, Las Vegas, Nev.
           Contact: 1-703-739-0800;

Mar. 4, 2011
     Bankruptcy Battleground West
        Hyatt Regency Century Plaza, Los Angeles, Calif.
           Contact: 1-703-739-0800;

Mar. 7-9, 2011
     Conrad Duberstein Moot Court Competition
        Duberstein U.S. Courthouse, New York, N.Y.
           Contact: 1-703-739-0800;

Mar. 10, 2011
     Nuts and Bolts - Florida
        Tampa, Fla.
           Contact: 1-703-739-0800;

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

Mar. 17-19, 2011
     Byrne Judicial Clerkship Institute
        Pepperdine University School of Law, Malibu, Calif.
           Contact: 1-703-739-0800;

Mar. 31-Apr. 3, 2011
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800;

April 27-29, 2011
     TMA Spring Conference
        JW Marriott, Chicago, IL

May 5, 2011
     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;

May 6, 2011
     New York City Bankruptcy Conference
        Hilton New York, New York, N.Y.
           Contact: 1-703-739-0800;

June 6, 2011
     Canadian-American Cross-Border Insolvency Symposium
        Fairmont Royal York, Toronto, Ont.
           Contact: 1-703-739-0800;

June 9-12, 2011
     Central States Bankruptcy Workshop
        Grand Traverse Resort and Spa, Traverse City, Mich.

July 21-24, 2011
     Northeast Bankruptcy Conference
        Hyatt Regency Newport, Newport, R.I.
           Contact: 1-703-739-0800;

July 27-30, 2011
     Southeast Bankruptcy Workshop
        The Sanctuary at Kiawah Island, Kiawah Island, S.C.
           Contact: 1-703-739-0800;

Aug. 4-6, 2011
     Mid-Atlantic Bankruptcy Workshop
        Hotel Hershey, Hershey, Pa.
           Contact: 1-703-739-0800;

Oct. 14, 2011
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800;

Oct. __, 2011
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800;

Oct. 25-27, 2011
     Hilton San Diego Bayfront, San Diego, CA

Dec. 1-3, 2011
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800;

Apr. 19-22, 2012
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800;

July 14-17, 2012
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800;

Aug. 2-4, 2012
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800;

Nov. 29 - Dec. 2, 2012
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800;


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

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  Go to 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,

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 * * *