TCREUR_Public/110216.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, February 16, 2011, Vol. 12, No. 33

                            Headlines



F R A N C E

PEUGEOT SA: Fitch Gives Positive Outlook; Affirms 'BB+' Rating
RENAULT SA: Moody's Affirms Corporate Family Rating at 'Ba1'


G E R M A N Y

KCA DEUTAG: Creditors Approve Restructuring Proposal
S-CORE 2007-1: Moody's Cuts Ratings on Two Classes of Notes to Ca
TITAN EUROPE: Moody's Cuts Rating on Class A2 Notes to 'B1 (sf)'
WESTLB AG: Gets Several Bids, Sales Agent Says


H U N G A R Y

EMFESZ: Keler Withdraws Liquidation Bid Against EMFESZ


I R E L A N D

ANGLO IRISH: Noteholders File Suit in New York Federal Court
ANGLO IRISH: Ex-Chief David Drumm & Wife Had 25 Bank Accounts
* Moody's Downgrades Senior Debt Ratings of Six Irish Banks


L U X E M B O U R G

BEVERAGE PACKAGING: S&P Cuts Ratings on EUR480-Mil. Notes to 'B-'
INTELSAT SA: 2010 Capital Expenditures Total US$932 Million
TELENET FINANCE: Moody's Puts 'Ba3' Rating on Senior Secured Notes


N E T H E R L A N D S

EUROCREDIT CDO: Moody's Lifts Rating on Class II Notes to B1 (sf)


R U S S I A

ALFA-BANK OJSC: Moody's Assigns 'Ba1' Rating to Sr. Unsecured Debt
BANK ROSSIYA: S&P Assigns 'B/B' Counterparty Credit Ratings
IZHAVTO OJSC: Internal Affairs Probes Ex-Managers Over Bankruptcy
KOKS OAO: S&P Affirms 'B' Long-Term Corporate Credit Rating


S P A I N

AYT DEUDA: S&P Puts 'BB' Rating on Class C Notes on Watch Negative


U K R A I N E

NADRA BANK: Temporary Administration Extended
PRIVATBANK AS: Moody's Changes Outlook on 'D-' BFSR to Stable
RODOVID BANK: Transfer of Retail Deposits to Ukreximbank Likely


U N I T E D   K I N G D O M

AEOLUS CDO: S&P Withdraws Ratings on Six Classes of Notes
ASSETCO PLC: Faces Funding Problems; May Ask Shareholders for Cash
AUTO WINDSCREENS: Falls Into Administration, 1,100 Jobs at Risk
DUNDEE FOOTBALL CLUB: Transfer Dealings Remain Out of Bounds
KL EXPRESS: Goes Into Liquidation

LEGAL MARKETING: Management Buys Firm Out of Administration
OCEAN VIEW: Exec Under Police Probe Over GBP43-Mil. Property Scam
TAYLOR WIMPEY: Moody's Assigns 'B2' Rating to GBP250-Mil. Notes
THOMPSON DEVELOPMENTS: Goes Into Receivership, Owes GBP100MM++


                            *********


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F R A N C E
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PEUGEOT SA: Fitch Gives Positive Outlook; Affirms 'BB+' Rating
--------------------------------------------------------------
Fitch Ratings has revised Peugeot SA's rating Outlook to Positive
from Stable.  The agency has also affirmed PSA's and Renault SA's
Long-term Issuer Default Ratings and senior unsecured notes at
'BB+' and PSA's Short-term IDR at 'B'.  The Outlook on Renault's
IDR is Stable.

PSA's Outlook revision reflects Fitch's view that the group could
be upgraded in the next 12 months if the recovery of key credit
metrics, underpinned by solid FY10 results, is confirmed in 2011.
An upgrade of Renault's ratings is also possible, but it is only
likely to meet Fitch's positive rating guidelines beyond the usual
timeframe of a Positive Outlook.  Fitch believes that Renault's
operating margins could take more time to recover as the benefit
of the current plan should be back-loaded towards 2012-2013.

"PSA and Renault have demonstrated that they are on track with
their respective targets to increase revenue, earnings and free
cash flow generation in the foreseeable future," Emmanuel Bulle,
Senior Director in Fitch's European Corporates team said.  "Both
groups were hit hard during the H208-H109 sector and credit
crisis, but took various successful measures to diversify their
revenue bases, improve their cost structures and strengthen their
financial profiles, but PSA is likely to see improved
profitability earlier than Renault."

Revenue rebounded in 2010 thanks to the groups' growing presence
outside of Europe, which offset poor market conditions in Europe.
Both groups have a strong focus on emerging regions, including
Latin America, Russia (PSA and Renault), and China (PSA).  PSA's
sales outside Europe grew to 39% in 2010, from 32% in 2009 and
this share is expected to increase further to 50% by 2015.
Renault plans to derive 43% of its sales from outside Europe in
2011, from 37% in 2010 and 17% in 2000.

PSA's and Renault's operating margin improved to 3.2% and 2.8%,
respectively, in 2010, from -1.4% and -1.2% in 2009, while cash
generation was also strong in 2010, with free cash flow at
EUR1.1 billion and EUR1.7 billion, respectively, according to the
companies' calculations.  Renault's cost base benefited from
increased synergies derived from partner Nissan ('BBB-
'/Stable/'F3'), greater amortization of fixed costs as a result of
increasing production, cost-cutting measures and the increased
relocation of production outside of Western Europe.  PSA's
profitability was boosted by higher-than-expected savings from its
2010-2013 Performance Plan (particularly in production and
procurement and better capacity utilization rates) and incremental
sales from emerging regions.  Fitch expects PSA's and Renault's
profitability to increase gradually over the coming years, as a
result of further sales growth and cost savings efforts.  Fitch
forecasts PSA's group operating margin to reach 3.9% and 4.3%, by
2011 and 2012 respectively, and Renault's to reach 3.5% and 4%,
respectively.

Net financial debt of both groups has fallen substantially since
2009 as a result of positive FCF and, for Renault, asset sales,
while EBITDA and cash flows from operations rebounded in the same
period.  The combination of these factors led to lower net
leverage and higher CFO on adjusted debt at year-end 2010 (FYE10).
Fitch assumes Renault's adjusted net leverage will decline to 0.7x
at FYE11 and 0.5x at FYE12, from 1.1x at FYE10 and 3.3x at FYE09
and PSA's adjusted net leverage will decline to 0.5x at FYE11 and
0.3x at FYE12, from 0.7x at FYE10 and 1.6x at FYE09.

The ratings of both companies could be upgraded if financial
metrics strengthen on a sustainable basis, including net adjusted
leverage declining to less than 0.5x and CFO on total adjusted
debt improving to more than 40%.  Positive rating action could
also occur if there was a sustainable increase in market shares,
combined with improved profitability.

Conversely, a fall in global sales in 2011 and 2012, leading to
negative operating margins, and deterioration of key financial
metrics, including net adjusted leverage remaining above 1.5x
and/or CFO on total adjusted debt remaining below 25%, could be
negative for the ratings.  Failure to improve geographic
diversification in line with current targets could also put
pressure on the ratings or lead to a stabilization of the Outlook.

Medium- to long-term challenges facing the groups remain,
including overcapacity and the fierce competition in the mass
market segments in which they operate.  Despite recent
diversification, both groups still derive the majority of their
sales from Europe and Fitch will re-assess PSA's and Renault's
medium-term sales developments outside of Europe in coming years.
Renault is absent from the two largest markets in the world (China
and the US) and PSA from the US.  In the short term, weak growth
prospects and unabated price pressure in PSA's and Renault's core
European market will prevent a return to pre-crisis levels before
at least 2012.


RENAULT SA: Moody's Affirms Corporate Family Rating at 'Ba1'
------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 Corporate Family
rating of Renault S.A. and changed the outlook to positive from
stable.

The outlook change to positive acknowledges the stronger than
anticipated recovery in Renault's financial metrics that
benefitted from the cash inflow of EUR3 billion resulting from the
sale of its B-shares in AB Volvo as well as an improvement in
operating performance and solid cash flow generation in 2010.
Free cash flow generation continued to benefit from a tight
control of capital expenditures, working capital and the omittance
of the dividend payment.  The resulting material improvement in
credit metrics, albeit from low levels, and more confidence from
the rating agency for a positive trajectory of the credit metrics
are the key factors driving the positive outlook.  Nonetheless
there are risk to this scenario should the light vehicle demand in
Western Europe, and in particular in France, be even weaker than
currently expected or factors driving the weak operating
profitability of the second half of 2010 not be corrected.

In 2010, the group's operating performance and credit metrics
demonstrated material improvements from the very weak levels
achieved in 2009 and 2008 thanks to strengthening industry volumes
and asset disposals.  The reported operating margin of its
automotive activities recovered to 1.1% compared to -2.8% in 2009.

However, the positive momentum in its automobile division weakened
in H2 2010 (operating margin -0.1%) compared to H1 2010 (2.2%)
mainly in light of a deteriorating country and price mix as well
as higher input costs.  The group's lower cost base and its
ambition to realize further costs synergies with Nissan should
support Renault in improving profitability further in the next few
years.  A significant improvement in Renault's operating profits
before the contribution of its associated companies remains a
precondition for an investment grade rating in the future.  The
risk remains that intense price competition in Europe and pressure
from increased raw material costs could offset any benefits from
cost synergies and cost savings.

The Ba1 rating continues to be supported by the group's business
profile with solid market positions in various regions, the
successful introduction of its entry level range and the benefits
from its alliance with Nissan (Baa2/stable).  Going forward,
Moody's expect the company to materially improve the profitability
in its core automobile division with a moderate downside risk
linked with weak outlook for passenger car demand in Europe as
well as intensifying price competition in the industry that could
delay a recovery.  The current rating also considers the group's
conservative financial policy with a healthy liquidity profile and
balance debt maturity profile.

On the other hand, Renault's inability to return to positive
operating income in its automobile division in 2010 (a loss of
EUR68 million calculated as Automotive operating margin of
EUR396 million less other operating income & expenses of EUR-464
million) despite the strengthening industry conditions weighs
negatively on the rating at this time.  More fundamentally the
company remains reliant -- although to a lesser extent than in the
past - on a few successful models and geographical diversification
is still limited with approx. 70% of revenues being generated in
Europe.  .  This makes the group vulnerable to declining passenger
car demand in France and a slow recovery in Western Europe in
2011.  Moody's cautions about the risk that pressure from rising
R&D needs, intense price competition in Europe, and increased raw
material costs might partially offset improvements in
profitability and FCF generation in the near term.

An upgrade to Baa3 could be envisaged over the next 12-18 months
in case Renault would demonstrate improving market share
performance in its key markets as well as a significant recovery
in its operating performance (excluding the contribution from
Nissan, Avtovaz and its remaining stake in AB Volvo) with
operating margins of above 2% on a sustainable basis.  This should
also be reflected in Debt/EBITDA ratios of 2.5x-3.5x.  In
addition, Moody's would expect the company to generate a positive
Free Cash Flow through the cycle of around EUR300-750 million per
annum.

Conversely the ratings could come under downward pressure in case
of (i) an erosion in Renault's competitive position in its key
markets reflected in market share losses, (ii) evidence that the
market environment would turn worse than anticipated with regards
to volumes or prices, (ii) the company's inability to turn around
the operating performance of its automobile division as well as
(iv) a sizeable cash absorption in the current year against the
company's target to generate a positive free cash flow.

At December 31, 2010, Renault's principal liquidity sources
consisted of cash on balance sheet in the amount of EUR8.8
billion, availability under undrawn committed credit lines of
EUR4 billion, as well as potential cash flow generation from
operations over the next 12 months.  These cash sources provide
adequate coverage for the major liquidity requirements that could
arise during the next 12 months.  These consist of short-term debt
maturities of approximately EUR4.7 billion, capital expenditures,
working capital funding, day-to-day needs as well as expected
dividend payments.

Outlook Actions:

* Issuer: Renault S.A.

  -- Outlook, Changed To Positive From Stable

The last rating action on Renault was a downgrade to Ba1/not Prime
with a stable outlook from a Baa2/P-2 under review for possible
downgrade on February 20, 2009.

Headquartered in Boulogne-Billancourt, France, Renault S.A. (rated
Ba1/NP/positive) is one of Europe's leading car manufacturers.
The two other brands offered by Renault are Dacia (Romania) and
Renault Samsung Motors (South Korea).  In addition, Renault
provides financing to dealers and end-customers through its wholly
owned finance company, RCI banque.  In fiscal year 2009, the group
sold 2.6 million vehicles and reported total group revenues of
EUR39.0 billion.


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


KCA DEUTAG: Creditors Approve Restructuring Proposal
----------------------------------------------------
Global Insolvency, citing Dow Jones Daily Bankruptcy Review,
reports that KCA Deutag's restructuring neared the finish line
Friday as creditors approved a proposal that includes what is
believed to be Europe's biggest cash injection into a company
since the financial crisis began.

According to Global Insolvency, KCA Deutag's wider senior lender
group Friday agreed to be locked into a restructuring deal which
includes a US$550 million check underwritten by the company's
private equity owners, Pamplona Capital Management, and the
company's junior creditors.  Full approval from creditors follows
the Jan. 28 recommendation of acceptance from the senior lenders'
coordinating committee, Global Insolvency relates.

Global Insolvency says paperwork completing the deal is expected
to be finished by March.

The cash injection is around a third of the company's valuation,
which was last year put between US$1.2 billion and US$1.5 billion
by its adviser Morgan Stanley, Global Insolvency discloses.
Pamplona will put in 40% of the cash but will hold a large
majority shareholding in the company, while the subordinated
creditors, holding a $600 million slice of mezzanine debt, will
pick up the remaining 60%, Global Insolvency states.  The check
will be split, with $300 million being used to pay down senior
debt and $250 million for liquidity and investment into new rigs,
Global Insolvency notes.

As reported by the Troubled Company Reporter-Europe, the FT said,
burdened with more than US$2 billion (GBP1.25 billion) debt, the
company has struggled to respect its loan covenants, especially
since the BP oil spill in the Gulf of Mexico caused delays to new
oil rigs and hit earnings.

KCA DEUTAG Drilling Limited is a major land driller with more than
60 land rigs operating worldwide and is the largest offshore
drilling contractor in the UK sector of the North Sea.  KCA DEUTAG
has more than 30 offshore platforms and 10 mobile offshore
drilling rigs (including jackups) in the North Sea, the Caspian
Sea, Angola and Sakhalin.  It is also active in the Middle East,
Africa and Asia.  Not just a contractor, it also designs,
engineers, and constructs platform rigs.  KCA DEUTAG delivers rigs
primarily to large international operators in the oil and gas
industry.  The company is a subsidiary of Abbot Group, a major UK-
based oil field services concern.  It is based in Aberdeen,
Scotland.


S-CORE 2007-1: Moody's Cuts Ratings on Two Classes of Notes to Ca
-----------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by S-CORE 2007-1 GmbH.

Issuer: S-CORE 2007-1 GmbH

  -- EUR363.8M A1 Notes, Confirmed at Aaa (sf); previously on Oct
     29, 2010 Aaa (sf) Placed Under Review for Possible Downgrade

  -- EUR91M A2 Notes, Downgraded to Ba1 (sf); previously on Oct
     29, 2010 A2 (sf) Placed Under Review for Possible Downgrade

  -- EUR8.85M B Notes, Downgraded to Caa2 (sf); previously on Oct
     29, 2010 Ba2 (sf) Placed Under Review for Possible Downgrade

  -- EUR9.6M C Notes, Downgraded to Caa3 (sf); previously on Oct
     29, 2010 B1 (sf) Placed Under Review for Possible Downgrade

  -- EUR12.4M D Notes, Downgraded to Ca (sf); previously on Oct
     29, 2010 Caa1 (sf) Placed Under Review for Possible Downgrade

  -- EUR19.7M E Notes, Downgraded to Ca (sf); previously on Oct
     29, 2010 Caa3 (sf) Placed Under Review for Possible Downgrade

                        Ratings Rationale

S-core 2007-1 is a German SME CLO referencing a static portfolio
of 'schuldscheine' loans with bullet maturities between 2012 and
2014.  The Class A notes have been paid down by EUR44.4 million
from amortizations and excess spread proceeds.  The outstanding
portfolio totals EUR432.8 million of portfolio assets,
representing exposure to 134 loans.

According to Moody's the rating actions are driven by a default
rate realised in the underlying pool higher than expected at last
rating action (September 2009).  It is also the result of a lower
expected rate of recoveries on defaulted assets in the underlying
pool, reflecting the absence of recoveries observed on defaults to
date, and sensitivity of the results to the recovery assumption.
Moody's also noted the low OC levels for all tranches below
tranche A-1 as well as some limited deterioration in the pool's
credit quality compared to the last rating action, although the
WARF has improved since S-core was placed on watch in October
2010.

S-core 2007 has experienced EUR23.2 million of defaults since last
rating action (September 2009).  Reflecting the higher default
rate in the pool and a corresponding reduction in available excess
spread in the transaction, the principal deficiency ledger has
increased to EUR28.2 million from EUR7.6 million since the last
action.  At the last payment date EUR364,405 spread proceeds were
available to reduce the PDL.  No recoveries on the EUR41.2 million
cumulative defaults observed in the pool have been received to
date.  Once and if available, these recovery proceeds will be used
to pay down the PDL.

In its base case, Moody's analyzed the underlying collateral pool
with a stressed weighted average default probability to scheduled
maturity (25 April 2014) of 8.2%.  This is consistent with the
default probability level equivalent to a B1 rating over the
weighted average life of the pool.  Moody's also took into account
additional model results based on recovery scenarios below 30% as
opposed to the base case assumption of 30% in the October 2009
action.

Moody's tested the impact of several stress scenarios.  Reducing
recovery rates of both the actual and modelled defaulted assets to
15% of par impacts the model results of the rated tranches by 1 to
2 notches.

The internal ratings assigned to the loan obligors by the
originator Deutsche Bank are used to determine their default
probabilities.  These internal ratings are converted to Moody's
rating scale according to a mapping.  The internal ratings
provided by Deutsche Bank indicate a pool rating slightly worse
than at last monitoring, although they have improved since S-core
was placed on watch in October 2010.

The key assumptions Moody's used were these:

1.  Default rates for the pool will likely remain at elevated
    levels, despite improvements in the German economy.

2.  Recoveries on the senior unsecured 'schuldscheine' loans could
    be below 30% in the majority of cases.

Sources of additional performance uncertainties include:

1.  the extent to which high growth in the German economy in 2010
    will be maintained in 2011

2.  recovery rates likely to be observed on the defaulted assets .

Under this methodology, Moody's relies on a simulation based
framework.  Moody's therefore used CDOROMTM, to generate default
and recovery scenarios for each asset in the portfolio, and then
Moody's EMEA Cash-Flow model in order to compute the associated
loss to each tranche in the structure.

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

Moody's has analyzed the cash flows to the classes and gave credit
to the limited excess spread available for deleveraging purposes.
Continued defaults in the pool will further reduce the ability of
the transaction to deleverage.  Moody's does not expect the PDL
will be paid off before maturity of the transaction.


TITAN EUROPE: Moody's Cuts Rating on Class A2 Notes to 'B1 (sf)'
----------------------------------------------------------------
Moody's Investors Service has downgraded the Class A1 Notes and
Class A2 Notes issued by Titan Europe 2006-5 p.l.c. (amounts
reflect initial outstandings):

  -- EUR330M Class A1 Notes, Downgraded to A1 (sf); previously on
     Aug 20, 2010 Aa1 (sf) Placed Under Review for Possible
     Downgrade

  -- EUR112.3M Class A2 Notes, Downgraded to B1 (sf); previously
     on Aug 20, 2010 Baa3 (sf) Placed Under Review for Possible
     Downgrade

The Class X Notes is currently rated Aaa (sf).  Moody's does not
rate the Class A3, B, C, D, E and Class F.

The rating action concludes the review for possible downgrade that
was initiated for the Class A1 and A2 Notes on August 20, 2010.
The action takes into account Moody's updated central scenarios as
described in Moody's Special Report "EMEA CMBS: 2011 Central
Scenarios."

                        Ratings Rationale

The key parameters in Moody's analysis are the default probability
of the securitized loans (both during the term and at maturity) as
well as Moody's value assessment for the properties securing these
loans.  Moody's derives from those parameters a loss expectation
for the securitized pool.  Based on Moody's revised assessment,
the loss expectation for the pool has increased since the last
review in November 2009.

The rating downgrade on the Class A1 and Class A2 Notes is mainly
due to the significant negative performance issues involving two
of the top three loans in the pool (58% of current pool balance),
namely the DIVA Multifamily Portfolio loan and the Quartier 206
Shopping Centre loan.

Moody's analysis reflects a forward-looking view of the likely
range of collateral performance over the medium term.  From time
to time, Moody's may, if warranted, change these expectations.
Performance that falls outside an acceptable range of the key
parameters may indicate that the collateral's credit quality is
stronger or weaker than Moody's had anticipated during current
review.  Even so, deviation from the expected range will not
necessarily result in a rating action.  There may be mitigating or
offsetting factors to an improvement or decline in collateral
performance, such as increased subordination levels due to
amortization and loan re- prepayments or a decline in
subordination due to realized losses.

Primary sources of assumption uncertainty are the current stressed
macro-economic environment and continued weakness in the
occupational and lending markets.  Moody's anticipates (i) delayed
recovery in the lending market persisting through 2012, while
remaining subject to strict underwriting criteria and heavily
dependent on the underlying property quality, (ii) values will
overall stabilize but with a strong differentiation between prime
and secondary properties, and (iii) occupational markets will
remain under pressure in the short term and will only slowly
recover in the medium term in line with the anticipated economic
recovery.  Overall, Moody's central global scenario remains
'hooked-shaped' for 2011; Moody's expects a sluggish recovery in
most of the world's largest economies, returning to trend growth
rate with elevated fiscal deficits and persistent unemployment
levels.

                    Moody's Portfolio Analysis

This transaction which closed in December 2006, represents the
securitization of initially eight commercial mortgage loans
originated by Credit Suisse International.  Since closing, one
loan (Hotel Balneario Blancafort Loan -- 6.1% of the initial
portfolio balance) has repaid.  The current loan Herfindahl index
is 3.6, compared to 4.2 at closing.  The remaining loans are not
equally contributing to the portfolio: the largest loan (the DIVA
Multifamily Portfolio loan) represents 39.1% of the current
portfolio balance, while the smallest loan (the Hilite Warehouse
loan) represents 1.8%.  The remaining loans are secured by 40
properties which are predominantly hotel (40.3%) and mixed-
use/multi-family (39.7%).  All of the remaining properties are
located in Germany.  The aggregate outstanding balance of the
securitized loans is EUR614.4 million with the weighted average
U/W whole loan-to-value ratio standing at 112.5% as compared to
Moody's weighted average LTV of 135%.

The DIVA Multifamily Portfolio loan is secured by a large
residential portfolio (482,000 square meters) located in Eastern
Germany and Berlin.  The loan has defaulted and is in special
servicing since September 2008 due to insolvency of the borrower.
Since October 2008, the loan is also in payment default.  In
December 2009 the property portfolio was revalued at EUR193.9
million reflecting a decline of 42% compared to closing (December
2006).  As a result, the current LTV is 140% on a whole loan basis
and 128% based on the securitized loan amount.  This compares to
Moody's LTVs of 151% and 133% respectively (similar to Moody's
last review in November 2009).

Compared to last review, there remains very limited visibility
over the (quarterly) cash flows currently generated by the
individual properties of the portfolio and over the amount of
distributions that can be expected from the insolvency
administrator of the borrower over time.  Regarding the
disposal/liquidation plan for the portfolio, there has been some
clarity from the special servicer around the marketing plan and
potential timing of the sales.

Moody's understands that the current work out strategy for the
loan includes a potential (partial) sale of the portfolio with a
targeted completion date of mid-2011.  Taking into account (i) the
below average quality of the property portfolio coupled with the
subdued lending and investment market, especially for such
properties, in the next two to three years; (ii) the increased LTV
compared to closing; and (iii) the out-of-the-money interest rate
swap with a maturity date in 2016, this could result in net sales
proceeds below allocated loan amounts if (partial) disposals are
completed in the foreseeable future.  The actual amounts received
depend ultimately on the final combined decision of the insolvency
administrator and special servicer.

The Quartier 206 Shopping Centre loan (18.7% of the current pool)
is the third largest loan and secured by a shopping mall a prime
retail area of Berlin.  This interest-only loan is in special
servicing following a payment default in April 2010.  The ongoing
payment default is due to a significant deterioration in cash
flows generated by the property resulting from rental waivers and
tenants vacating the property (current vacancy rate is about 13%).
About half of the contracted rental income is contributed by
sponsor-related tenants.  Some of these sponsor related tenants
have contractual options for short term termination.  Lease
agreements with the sponsor-related tenants were amended since
closing and lease payments were partially waived and reduced for
one to two years.  Since the payment default occurred, a large
part of the EUR2.0 million quarterly interest payments were
deferred.  Interest payments to noteholders have been funded by
several liquidity drawings.  A revaluation of the underlying
property as per January 2010 indicated a value decline of 47%
since closing.  This has triggered an appraisal reduction
mechanism and a control valuation event shifting the control
rights for this loan to the junior note from the B-note lenders.
The current U/W LTV is 150% on a whole loan basis compared an LTV
of 80% at closing.  Moody's understands that the special servicer
initiated a restructuring of the loan (including negotiations with
the borrower) and that a restructuring advisor/ auditor was
appointed by the borrower in 2010 with an aim to de-lever the
loan.  However, Moody's has limited visibility on the actual
progress made to date.  As the sponsor (who is also involved in
the DIVA Multifamily Portfolio and Hotel Adlon Kempinski loans)
has not made any contributions since closing, Moody's has given no
sponsor benefit.

Moody's current property value of EUR77 million is about 20% lower
than the most recent underwriter value and considers the prime
quality of the property, however the value is negatively impacted
by (i) the underperformance of the property management reflected
in the drop of rental cash flows and existing vacancy; (ii) the
high future lease roll over (approximately 40% of the current rent
matures in the next two years); (iii) existing vacancy of about
13% and (iv) lease waivers applied to date.  As a result, Moody's
current whole loan LTV is 188%.  The downgrade action also
reflects uncertainties around any potential restructuring of this
loan and the behavior of the sponsor going forward.

The Hotel Adlon Kempinski loan (26.0% of the current pool) is
secured a prime 385-room, 5-star hotel property located in Berlin.
This fixed rate loan underperforms Moody's expectations as the
rental income decreased by approximately 10% since closing.  This
decline is related to a sponsor-related tenant leasing the
restaurant area.  The lease agreement with this tenant has been
amended and lease payments have been waived.  The current (fixed)
rent is based on a seven year remaining lease (with option to
break a year earlier) with the hotel operator (Kempinski).  The
loan is on the Servicer's watchlist as the current reported debt
service coverage ratio of 1.45x is below the cash trap trigger
(1.50x) since Q1 2010.  As a result EUR4 .5 million surplus funds
have been trapped.  The reported DSCR is based on the net
operating income of the hotel property and related facilities.  To
date, all loan interest payments have been made in full.  Moody's
current property value of EUR159 million is about 45% lower than
the underwriter value of EUR288 million (unchanged since closing).
Moody's current value takes into account (i) the specific property
type; (ii) the current subdued 5-star hotel market in Berlin; and
(iii) the reduced rental cash flows (and NOI) since closing.
However, benefit is given for the prime nature of the property.
As a result, Moody's current LTV is 101% which is expected to only
slightly improve towards maturity in July 2016.

The remaining loans are all current; however the Hilite Warehouse
loan is on the servicer's watchlist due to a cash trap event.

Following the default of the largest loan, the sequential payment
trigger has been breached and all amortization payments,
prepayments and repayments are allocated fully sequentially.  The
Class A1 Notes rank senior to the Class A2 Notes.  Since closing,
the subordination available to Moody's rated notes has marginally
increased, from 50.1% to 51.8% for the Class A1 Notes and from
33.1% to 34.1% for the Class A2 Notes.

Drawings under the liquidity facility occurred on most of the IPDs
since October 2008.  This facility is used to cover interest
shortfalls under the DIVA Multifamily Portfolio loan and the
Quartier 206 Shopping Centre loan.  Outstanding liquidity drawings
as per January 2011 IPD are EUR8.2 million (EUR4.1 in July 2010).
The Class C Notes (not rated by Moody's) are subject to a partial
interest deferral as of the January 2011 Note IPD and the Class D,
E and F Notes (not rated by Moody's) are subject to full interest
deferrals.  The total deferred interest amount outstanding as per
January 2011 IPD is EUR1.2 million.

Portfolio Loss Exposure: Moody's notes the bifurcated nature of
the loan pool and expects a considerable amount of losses on the
securitised portfolio, stemming from the DIVA Multifamily
Portfolio loan and the Quartier 206 Shopping Centre loan.  Given
Moody's reduced property recovery value and increased default risk
for these loans, the risk of potential losses arising for the
Class A1 and A2 Notes has increased resulting in the rating
downgrade for these classes of Notes.


WESTLB AG: Gets Several Bids, Sales Agent Says
----------------------------------------------
Arno Schuetze and Matthias Inverardi at Reuters report that WestLB
AG's official sales agent said the bank received several bids as
it enters the final stretch to present a restructuring plan to the
European Commission.

"The bidders are interested in the whole landesbank," Reuters
quotes Friedrich Merz, who has been appointed by WestLB's owners
to oversee the sale of the Duesseldorf-based lender, as saying.

According to Reuters, sources close to the bank said that although
four non-binding bids from strategic players and private equity
investors have been tendered, none of the bidders will end up
buying the whole lender.  Instead, they will only try to pick up
parts of it at later stages of the process, Reuters says.

WestLB, partially owned by the German state of North
Rhine-Westphalia and local savings banks, has been put on the
block as a condition for European Union approval of state aid
granted to the bank in the financial crisis, Reuters notes.

In January, Mr. Merz said he had received several tentative bids
for the lender, which the EU said must be sold this year, Reuters
recounts.  The EU also set a Feb. 15 deadline for WestLB to come
up with a restructuring plan to make up for state aid in the
financial crisis, Reuters states.

Reuters relates that sources close to the negotiations said WestLB
is nearing a deal that will keep key parts under public-sector
control, but leave other units to be plucked off by investors.

                           About WestLB

Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory, lending,
structured finance, project finance, capital markets and private
equity products, asset management, transaction services and real
estate finance to institutions.  In the United States, certain
securities, trading, brokerage and advisory services are provided
by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a
registered broker-dealer and member of the NASD and SIPC.
WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW
(64.7%) and two regional associations (35.3%).


=============
H U N G A R Y
=============


EMFESZ: Keler Withdraws Liquidation Bid Against EMFESZ
------------------------------------------------------
MTI-Econews reports that clearing house Keler on Monday said it
withdrew a liquidation request against Emfesz on Friday, after the
gas trader settled its debts with its peers.

MTI-Econews relates Keler said the gas trader settled its debts
with 12 members of the Gas Industry Collective Guarantee Fund on
February 11.

According to MTI-Econews, the Hungarian Energy Office (MEH)
suspended Emfesz's gas trading license for 90 days on January 13,
after its suppliers stopped deliveries because of unpaid bills.

At the beginning of February, Emfesz managing director Istvan
Goczi told MTI-Econews that problems resulting from the suspension
of the license had "come to an end".

"We paid Keler, the clearing house for the gas trade market, about
HUF1.5 billion we owed and eliminated the legal grounds for a
liquidation procedure earlier initiated by Keler.  At the same
time, we took care of FGSz Foldgazszallito's invoices.  We are
still solving smaller problems with FGSz, but we have closed the
2010 business year," Mr. Goczi said at the time, MTI-Econews
reports.

EMFESZ is a gas trading company.  It controls about one-fifth of
Hungary's gas market.


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


ANGLO IRISH: Noteholders File Suit in New York Federal Court
------------------------------------------------------------
Elizabeth Amon at Bloomberg News reports that Anglo Irish Bank
Corp. was sued in federal court in New York by noteholders seeking
to enforce the Dublin-based lender's agreements on two series of
notes with an aggregate principal of US$200 million.

Bloomberg relates that Fir Tree Capital Opportunity Master Fund
and Fir Tree Value Master Fund LP, both based in the Cayman
Islands, said a planned merger of Anglo Irish with the Irish
Nationwide Building Society puts the principal and interest
payments they're entitled to in jeopardy.  The funds, Bloomberg
says, are seeking a receiver to take charge of assets in the U.S.

"Accordingly the noteholders bring this action to enforce their
contractual and equitable rights under the agreement," Bloomberg
quotes Fir Tree Capital Opportunity Master Fund LP as saying in
the complaint.  "The terms of the agreement and notes obligate
Anglo Irish Bank to pay principal, premium (if any) and interest
on the notes."

According to Bloomberg, the funds say that unless a receiver is
appointed, Anglo Irish Bank will continue to dispose of its assets
in the U.S., preventing noteholders from recovering any judgments
they might win against the bank.

On Feb. 8, the government ordered Anglo Irish Bank and a second
state-controlled lender, Irish Nationwide Building Society, to
sell their deposits and some assets, Bloomberg discloses.  Anglo
Irish Bank said in a statement that under the Feb. 8 order, the
bank and Irish Nationwide are to be merged as part of a
restructuring plan, subject to European Commission approval.

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

                        *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 1,
2010, DBRS downgraded the ratings of the Euro Dated Subordinated
Notes (specifically the EUR325.2 million Floating Rate
Subordinated Notes due 2014, EUR500 million Callable Subordinated
Floating Rate Notes due 2016 and the EUR750 million Dated
Subordinated Floating Rate Notes due 2017) (collectively referred
to as the 2017 Notes) issued by Anglo Irish Bank Corporation
Limited (Anglo Irish or the Bank) to 'D' from 'C'.  DBRS said the
downgrade follows the execution of the Bank's note exchange offer.
The default status for the exchanged and now-extinguished 2017
Notes reflects DBRS' view that bondholders were offered limited
options, which, as discussed in DBRS' press release dated
October 25, 2010, is considered a default per DBRS policy.

On Oct. 29, 2010, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services lowered its rating on
Anglo Irish Bank Corp. Ltd.'s non-deferrable 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.


ANGLO IRISH: Ex-Chief David Drumm & Wife Had 25 Bank Accounts
-------------------------------------------------------------
Belfast Telegraph reports that former Anglo Irish boss David Drumm
and his wife Lorraine had up to 25 bank accounts between them
before he filed for bankruptcy in the US.

Belfast Telegraph relates that Mr. Drumm, who has debts of
EUR10.26 million, revealed the existence of the accounts at a
creditors' meeting in Boston on Monday.

According to Belfast Telegraph, at the meeting it also emerged how
Mr. Drumm, who gardai want to question over irregularities at the
bank, amassed a EUR3.8 million Anglo pension pot.  It also emerged
for the first time that Mr. Drumm transferred US$1.9 million
(EUR1.4 million) into a wealth management fund within months of
relocating to the US, Belfast Telegraph notes.

During a two-hour hearing, Mr. Drumm was unable to answer many
questions posed by bankruptcy trustee Kathleen Dwyer about
transfers in and out of the accounts held by him and his wife,
Belfast Telegraph recounts.

The former Anglo boss was also asked about the new financial
advisory business he set up in Boston, Belfast Telegraph states.

Questioning of the former banker is set to resume next month,
Belfast Telegraph says.

As reported by the Troubled Company Reporter-Europe on Oct. 19,
2010, Bloomberg News said Mr. Drumm filed for bankruptcy months
after Anglo sought repayment of loans from him.  Bloomberg
disclosed that 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 the U.S. Bankruptcy Court in Boston.
Anglo Irish Bank's lawyers told a court in Dublin in December 2009
that the bank was seeking repayment of loans valued at about EUR8
million (US$11.3 million) from Mr. Drumm, according to Bloomberg.
Mr. Drumm's liabilities were primarily business debts, Bloomberg
said, citing the former chief executive's Oct. 14 filing under
Chapter 7 of the U.S. Bankruptcy Code.

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

                        *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 1,
2010, DBRS downgraded the ratings of the Euro Dated Subordinated
Notes (specifically the EUR325.2 million Floating Rate
Subordinated Notes due 2014, EUR500 million Callable Subordinated
Floating Rate Notes due 2016 and the EUR750 million Dated
Subordinated Floating Rate Notes due 2017) (collectively referred
to as the 2017 Notes) issued by Anglo Irish Bank Corporation
Limited (Anglo Irish or the Bank) to 'D' from 'C'.  DBRS said the
downgrade follows the execution of the Bank's note exchange offer.
The default status for the exchanged and now-extinguished 2017
Notes reflects DBRS's view that bondholders were offered limited
options, which, as discussed in DBRS' press release dated
October 25, 2010, is considered a default per DBRS policy.

On Oct. 29, 2010, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services lowered its rating on
Anglo Irish Bank Corp. Ltd.'s non-deferrable 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.


* Moody's Downgrades Senior Debt Ratings of Six Irish Banks
-----------------------------------------------------------
Moody's Investors Service has downgraded the unguaranteed senior
unsecured debt ratings of six Irish banks and kept them under
review for further possible downgrade.  The deposit ratings of
these banks have also been placed under review for downgrade.  The
actions follow recent government statements that call into
question the government's willingness to provide additional
support to the banks beyond that which has already been provided
to date, and reflect the increasing risk of some type of burden-
sharing with senior creditors.  Moody's rating actions are
summarized:

* The unguaranteed senior unsecured debt ratings of these banks
  have been downgraded: Bank of Ireland to Ba1/Not-Prime from
  Baa2/P-2; Allied Irish Banks to Ba2 from Baa3; EBS Building
  Society and Irish Life & Permanent to Ba2/Not-Prime from Baa3/P-
  3; Anglo Irish Bank and Irish Nationwide Building Society to
  Caa1 from Ba3.  In addition, the long-term unguaranteed senior
  unsecured debt ratings of these banks have been placed on review
  for further possible downgrade.

* The bank deposit ratings of these six banks (Baa2/P-2 for BoI
  and Baa3/P-3 for AIB, EBS, IL&P, Anglo Irish and INBS), as well
  as ICS Building Society (Baa3/P-3), have been placed on review
  for possible downgrade.

* The senior unsecured and bank deposit ratings of KBC Bank
  Ireland have been downgraded to Baa3/P-3 from Baa2/P-2.
  The outlook is negative, in line with that on KBC Bank N.V.

* There is no rating impact on the stand-alone bank financial
  strength ratings, subordinated and tier 1 debt ratings,
  and government-guaranteed debt ratings; there is also no impact
  on the ratings of Bank of Ireland (UK) plc, the UK based
  subsidiary of Bank of Ireland.

* Moody's will communicate separately on the impact of these
  rating actions on the Covered Bond ratings for AIB Mortgage
  Bank, Anglo Irish Bank and Anglo Irish Mortgage Bank, Bank of
  Ireland Mortgage Bank, EBS Mortgage Finance, as well as the
  Mortgage Backed Promissory Notes ratings for Bank of Ireland
  Mortgage Bank and KBC Bank Ireland.

      Rating Rationale for Senior Debt Downgrade and Review

Moody's rating actions reflect a reduction in its systemic support
assumptions for the domestic Irish banks.  In line with the Irish
government's very supportive policy to date, Moody's has until now
assumed a high degree of systemic support for the banks' senior
unsecured debt and deposits, as a result of which the
corresponding ratings have enjoyed three to four notches of uplift
from the standalone ratings.  Irish governmental policy has
included debt guarantees, capital support (including the up to
EUR10 billion as announced with the EU/IMF support package), and
the establishment of the National Asset Management Agency (NAMA)
to acquire the land and development loans from five domestic
banking institutions.  In addition, as a further part of the
EU/IMF support package, a EUR25 billion contingency fund was
established to further support the banks.

Nevertheless, this supportive policy has been brought into
question over the past days, in statements from both the leading
opposition party and the incumbent finance minister.  While some
of these statements may reflect the current pre-election debate,
Moody's is increasingly concerned that they represent a growing
underlying threat for senior creditors from two directions.
First, Moody's notes that the Irish government's willingness to
provide support beyond what has been committed to date has become
far less certain and more difficult to predict, resulting in a
significant lowering of Moody's support assumptions for all
domestic Irish banks, and the subsequent downgrades of the
unguaranteed senior unsecured debt ratings.  The announcement late
on Wednesday in which the current government decided to postpone
the previously agreed capital increases to after the general
election adds to these concerns.

Second, given the huge fiscal burden faced by Irish taxpayers as a
direct result of problems in the banking sector and banks'
subsequent bailout by the government, in Moody's views there is an
increasing risk that this burden could be shared not only by
subordinated creditors, but by senior creditors, most likely
through distressed exchanges.  As a result, Moody's has placed the
unguaranteed senior unsecured debt ratings of the domestic banks
on review for possible downgrade, in order to assess the new
government's stance towards senior creditors.  Should the risk for
senior creditors increase significantly, the banks' unguaranteed
senior unsecured debt ratings would likely face further multi-
notch downgrades.

Commenting on the lower support assumptions, Moody's stated that
the four institutions viewed as going concerns by the authorities
-- AIB, BoI, EBS, and IL&P -- now benefit from one notch of
systemic support uplift from their standalone ratings (currently
mapped to Ba2 for BoI and Ba3 for the other three institutions),
resulting in unguaranteed senior unsecured debt ratings of Ba1 for
BoI and Ba2 for AIB, EBS, and IL&P.  Moody's continues to view
these four institutions as more systemically important for the
Irish government, as evidenced by the substantial support they
have received over the past two years.  The ratings also
incorporate the support provided through the EU/IMF package, as
well as the apparent pressure at the European level to continue
supporting senior debt obligations for fear of contagion beyond
Ireland.  However, in the case of Anglo Irish and INBS, Moody's
has now withdrawn all its assumptions of systemic support from the
banks' unguaranteed senior unsecured debt ratings, leading to a
downgrade to Caa1 from Ba3.  This reflects the much lower systemic
importance of these two institutions, reflected in this week's
decision to commence the auction of their deposits and wind down
of their remaining assets over the longer term.

         Review for Possible Downgrade on Deposit Ratings

The review for possible downgrade of the deposit ratings
(currently Baa2/P-2 at BoI and Baa3/P-3 at AIB, Anglo Irish, EBS,
IL&P, ICS and INBS) will focus on potential support for this
creditor class under a new government and whether this is higher
than that for senior unsecured debt.  The Baa3/P-3 deposit ratings
of Anglo Irish and INBS reflect the recent announcement that the
deposits of the two institutions are to be sold to other banks in
the system, the lowest of which are now rated Baa3/P-3 (and are on
review for possible downgrade).

                   Downgrade of KBC Bank Ireland

As a result of the reducing support for the banking system,
Moody's has removed the assumption of systemic support that was
incorporated into the ratings of KBCI.  As a result, the bank's
senior debt and deposit ratings have been downgraded to Baa3/P-3
from Baa2/P-2.  At the Baa3 rating level, this continues to
incorporate a very high level of support from the bank's parent,
Belgium's KBC Bank N.V., resulting in three notches of uplift from
the bank's D- BFSR (mapped to Ba3 on the long-term scale).  The
rating outlook is negative, in line with the negative outlook on
KBC Bank N.V.

            Other Banks Are Unaffected by the Actions

The ratings of the other Irish banks are unaffected by the rating
actions, as any rating uplift in their deposit and senior debt
ratings stems not from an assumption of government support but
from parental support.  These banks include Ulster Bank Ireland
(A2, negative; D-/Ba3 negative); Zurich Bank (A1, review for
possible upgrade; D-/Ba3 negative); and Hewlett Packard
International Bank (A2, stable; C-/Baa1 stable).

The bank rating actions are:

* Allied Irish Banks: Long-term senior unsecured debt rating
  downgraded to Ba2 from Baa3 and placed on review for possible
  downgrade; Baa3/P-3 bank deposit ratings placed on review for
  possible downgrade.

* Anglo Irish Bank: Long-term senior unsecured debt ratings
  downgraded to Caa1 from Ba3 and placed on review for possible
  downgrade; Baa3/P-3 bank deposit ratings placed on review for
  possible downgrade.

* Bank of Ireland: Senior unsecured debt ratings downgraded to
  Ba1/Not-Prime from Baa2/P-2 and placed on review for possible
  downgrade; Baa2/P-2 bank deposit ratings placed on review for
  possible downgrade.

* EBS Building Society: Senior unsecured debt ratings downgraded
  to Ba2/Not-Prime from Baa3/P-3 and placed on review for possible
  downgrade; Baa3/P-3 bank deposit ratings placed on review for
  possible downgrade.

* Irish Life & Permanent: Senior unsecured debt ratings downgraded
  to Ba2/Not-Prime from Baa3/P-3 and placed on review for possible
  downgrade; Baa3/P-3 bank deposit ratings placed on review for
  possible downgrade.

* ICS Building Society: Baa3/P-3 bank deposit ratings placed on
  review for possible downgrade.

* Irish Nationwide Building Society: Long-term senior unsecured
  debt ratings downgraded to Caa1 from Ba3 and placed on review
  for possible downgrade; Baa3/P-3 bank deposit ratings placed on
  review for possible downgrade.

* KBC Bank Ireland: Long-term senior unsecured debt ratings and
  bank deposit ratings downgraded to Baa3/P-3 from Baa2/P-2.  The
  outlook on these ratings remains negative.


===================
L U X E M B O U R G
===================


BEVERAGE PACKAGING: S&P Cuts Ratings on EUR480-Mil. Notes to 'B-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services corrected its ratings on
Reynolds Group Holdings Ltd. (B+/Negative/--) subsidiary Beverage
Packaging Holdings (Luxembourg) II S.A.'s (BP II) EUR480 million
second-priority notes due 2016.  S&P lowered the rating on these
notes to 'B-' (two notches below the corporate credit rating) from
'B' and revised the recovery rating to '6' from '5'.  These notes
are secured by a second-priority interest in all of the issued
capital stock of Beverage Packaging Holdings (Luxembourg) I S.A.
(BP I) and the receivables under loans of the proceeds of the
notes by the issuer to BP I.  S&P does not view this collateral as
being sufficient to distinguish recovery prospects for the second-
priority notes from those of the senior unsecured debt.  The issue
level rating of 'B-' and the recovery rating of '6' reflect S&P's
expectation of negligible (0% to 10%) recovery in the event of a
payment default.

On Jan. 27, 2011, based on S&P's updated recovery analysis, S&P
lowered the ratings on the senior unsecured debt of Reynolds Group
Holdings Ltd. and its subsidiaries to 'B-' (two notches below the
corporate credit rating) from 'B' and revised the recovery rating
to '6' from '5'.  Because of an administrative error, S&P did not
take the same rating action on the BP II second-priority notes.

                           Ratings List

                   Reynolds Group Holdings Ltd.

         Beverage Packaging Holdings (Luxembourg) II S.A.

  Corporate credit rating                          B+/Negative/--

           Issue Rating Lowered; Recovery Rating Revised

        Beverage Packaging Holdings (Luxembourg) II S.A.

                                                    To      From
                                                    --      ----
   EUR480 million second-priority notes due 2016    B-      B
    Recovery rating                                 6       5


INTELSAT SA: 2010 Capital Expenditures Total US$932 Million
-----------------------------------------------------------
On February 7, 2011, Intelsat S.A. announced actual capital
expenditures for the year ended December 31, 2010 and the annual
capital expenditure guidance for the three fiscal years beginning
January 1, 2011 and ending December 31, 2013.  The Company's
capital expenditures information and guidance includes capitalized
interest, but excludes capital expenditures associated with the
Intelsat New Dawn satellite expected to be launched by the
Company's New Dawn joint venture in 2011.

Capital expenditures for 2010 totaled US$932 million.  The Company
expects its 2011 total capital expenditures to range from
US$725 million to US$800 million, reflecting the fact that a
portion of the capital expenditures that was previously expected
to be incurred in 2011 was accelerated into 2010, and another
portion also previously expected to be incurred in 2011 is now
expected to be incurred in 2012.  Capital expenditures for fiscal
2012 are expected to range from US$575 million to US$650 million,
and in 2013 are expected to range from US$175 million to
US$250 million.

The Company has eight satellites in development, including
Intelsat New Dawn, that are expected to be launched during the
Guidance Period.  In addition to these announced programs, the
Company expects to procure one additional replacement satellite
during the Guidance Period.  By the conclusion of the Guidance
Period, the Company expects its total station-kept transponder
count to increase modestly from current levels.

                          About Intelsat

Intelsat S.A., formerly Intelsat, Ltd., provides fixed-satellite
communications services worldwide through a global communications
network of 54 satellites in orbit as of December 31, 2009, and
ground facilities related to the satellite operations and control,
and teleport services.  It had US$2.5 billion in revenue in 2009.

Intelsat S.A. had US$17.56 billion in assets, US$18.15 billion in
debts, noncontrolling interest of US$1.90 million, and a
shareholders' deficit of US$597.06 million as of Sept. 30, 2010.

Luxembourg-based Intelsat S.A. carries 'B' issuer credit ratings
from Standard & Poor's.  It has 'Caa1' corporate family and
probability of default ratings from Moody's Investors Service.

Washington D.C.-based Intelsat Corporation, formerly known as
PanAmSat Corporation, is a fully integrated subsidiary of Intelsat
S.A., its indirect parent.  Intelsat Corp. had US$7.70 billion in
assets against US$4.86 billion in debts as of Dec. 31, 2010.


TELENET FINANCE: Moody's Puts 'Ba3' Rating on Senior Secured Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to the
EUR300 million senior secured notes due 2021 issued by Telenet
Finance III Luxembourg SCA.  The rating outlook is stable.

Telenet intends to use proceeds to refinance portion of its
existing bank debt further improving its debt maturity profile.
The Ba3 rating on the notes reflects the fact that the transaction
is neutral to net debt and does not change Telenet's Ba3 CFR; and
that the notes are effectively pari-passu with Telenet's senior
secured bank facility (also rated at Ba3).

                        Ratings Rationale

Telenet Finance III is incorporated in Luxembourg as a special
purpose vehicle created to issue the proposed senior secured notes
to finance a EUR300 million term loan facility ('Finco Loan') to
Telenet International Finance SA ('Telenet International').  The
terms of the Finco loan will be recorded in an additional facility
accession agreement ('Facility O' Accession Agreement') between
Telenet Finance III and Telenet International and the facility
agent under the Telenet Senior Credit Facility.

Moody's understands that Telenet's note-holders indirectly benefit
from the terms (including maintenance financial covenants) of the
Senior Credit Facility, plus incurrence covenants within the
Facility O Accession Agreement.  They also have security over the
Issuer's shares and over its assets, including its rights to and
benefit in the Finco loan.  However, Moody's notes that the
holders of the notes will have only indirect recourse to Telenet
International so that in an enforcement scenario they would have
to enforce the security interest in the Finco loan, and
subsequently enforce the collateral granted in favor of the Finco
loan.

The Ba3 corporate family rating reflects Telenet's continued solid
operational performance supported by the company's multi-play
strategy.  However, the rating also takes into account (i) the
intensive competition that Telenet faces particularly from
incumbent operator, Belgacom, and also from mobile operators such
as Mobistar; (ii) the company's limited size of operations
compared with global peers; and (iii) the expectation that Telenet
in future will continue to pay out (at least) all of the
internally generated free cash flow (as defined by Telenet) in
shareholder disbursements (in the absence of suitable acquisition
opportunities); implying that the company will be relying largely
on EBITDA growth for operating within its own leverage target
parameters.

Moody's notes that Telenet intends to increase its net senior
leverage ratio (calculated as per its Senior Credit Facility
definition -- excluding the capitalized elements of indebtedness
under the clientele and annuity fees and any other finance leases)
to 3.5x (which implies a reported net total debt leverage of
around 4.0x) by the end of 2011.  This is likely to be executed
entirely via shareholder disbursements should acquisitions not
materialize during the year.  The agency notes that Telenet
remains committed towards maintaining its net reported total
leverage between 3x-4x prior to any debt-financed acquisitions
which could take leverage outside this range.

At June 30, 2010, the company's reported last twelve months net
total debt leverage was 3.6x pro-forma the shareholder
distribution of approximately EUR250 million on 2 August 2010.
This was equivalent to Moody's adjusted Gross Debt-to-EBITDA of
4.0x.  Moody's notes that at 30 September 2010, the company's
reported last twelve months net total debt leverage has further
reduced to 3.3x.  Despite relatively modest leverage for the
rating category, Telenet's CFR at Ba3 currently remains
constrained by the expected increase in leverage from current
levels in 2011 combined with the uncertainty regarding debt-
financed acquisitions.  In this regard, Moody's also incorporates
the fact that Telenet is majority-owned by Liberty Global (rated
Ba3, negative outlook).

                 What could change the rating - UP

Upward rating pressure would develop if, inter alia, the company
demonstrates clear commitment to maintain its gross debt to EBITDA
solidly below 4.5x (as calculated by Moody's) on a sustained
basis.  A move to positive free cash flow generation (as defined
by Moody's -- post capex and dividends) would also be a positive
factor.

               What could change the rating - DOWN

An increase in leverage at or above 5.5x Gross Debt/ EBITDA (as
adjusted by Moody's) resulting from significant debt-financed M&A
activity and/ or aggressive shareholder remuneration together with
sustained negative free cash flow (as calculated by Moody's) would
exert downward pressure on the rating.

Headquartered in Mechelen, Belgium, Telenet Group Holding NV is
the largest provider of cable services in Belgium.  Currently,
US-based Liberty Global Consortium (rated Ba3/Negative) owns
approximately 50.3% of Telenet.  For the financial year ending
December 31, 2009, Telenet reported revenues of EUR1.2 billion
with 50.7% Adjusted EBITDA margin (as calculated by the company).


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


EUROCREDIT CDO: Moody's Lifts Rating on Class II Notes to B1 (sf)
-----------------------------------------------------------------
Moody's Investors Service has taken these rating actions on notes
issued by Eurocredit CDO II B.V.

  -- EUR76M Class I-B Senior Notes, Upgraded to Aa2 (sf);
     previously on Oct 8, 2010 Upgraded to A3 (sf)

  -- EUR34M Class II Mezzanine Notes, Upgraded to B1 (sf);
     previously on Dec 21, 2009 Downgraded to Caa2 (sf)

                        Ratings Rationale

Eurocredit CDO II B.V. is a single currency CLO managed by
Intermediate Capital Managers Limited and issued in October 2000.
Assets backing this transaction include European high yield bonds
and senior secured loans.  Since the reinvestment period of the
transaction ended in October 2005, the underlying portfolio has
amortized by 45%.

The upgrade actions are driven by three main credit factors:

1- The significant amortization of the portfolio constitutes one
   of the main drivers of the rating upgrades.  Such amortization
   particularly benefits the most senior classes of notes which
   redeemed by 68% since closing in October 2000.  The level of
   overcollateralization of the Senior Notes has increased from
   131.13% in August 2010 to 138.96% in December 2010.

2- A slight improvement in the credit quality of the portfolio
   since the last rating action also contributed to the rating
   upgrades.  This includes the proportion of assets rated Caa1
   and below decreased by 3% since August 2010 and the weighted
   average rating factor remained stable.  These measures
   were taken from the trustee reports dated December 31, 2010 and
   August 31, 2010.

3- The current portfolio includes four assets (11% of the
   portfolio) whose weighted average life is longer than the final
   maturity of the transaction in October 2013.  Supported by a
   continued rally in the European leveraged loan market over the
   past months, better recovery prospects upon sale of long dated
   assets led us to increase Moody's average liquidation value
   assumption from 30% to 70%, in line with Moody's standard
   methodology assumptions.

4- The rating actions take into account the correction of certain
   data input in the model at the time of the last rating action
   on 8 October 2010.  Due to an administrative error, two
   performing bonds in the portfolio were treated as having
   defaulted.  This led to an understatement of the performing par
   considered in Moody's model used for last rating action.  Had
   this not occurred, the model output of Class I-B and Class II
   notes would have been marginally higher at that time.

As a base case, Moody's analyzed the underlying collateral pool
with an adjusted WARF of 3531 and a weighted average recovery rate
of 43.48%.  Standard correlation assumptions applicable to
corporate assets in the CDOROM2.7TM model have been used.

Under this methodology, Moody's relies on a simulation based
framework because of the lack of granularity in the transaction
portfolio.  Moody's therefore used the CDOROM2.7TM model to
generate default and recovery scenarios for each asset in the
portfolio which were then used in Moody's EMEA Cash-Flow model in
order to compute the associated loss to each tranche in the
structure.  The description of Moody's EMEA Cash-Flow model can be
found in the methodology listed above.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" and "Annual Sector Review (2009): Global CLOs", key
model inputs used by Moody's in its analysis, such as par, WARF,
diversity score, and weighted average recovery rate, may be
different from the trustee's reported numbers.

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

Furthermore, Moody's tested the sensitivity of model results to
key parameters for the rated notes.  Among these, the agency
considered the impact of a two-notch rating downgrade for the
largest exposures (10% of the pool) on the model outputs.  Moody's
also ran sensitivity analysis cases where the WARF was increased
or decreased by 200 points.  The model results from these
sensitivity tests are not different from the Moody's current
ratings by more than one notch.

Moody's also notes that 20% of the collateral pool consists of
debt obligations whose credit quality have been assessed through
Moody's credit estimates.  Large single exposures to obligors
bearing a credit estimate have been considered for the analysis
and applied a stress applicable to concentrated pools with non
publicly rated issuers as per the report titled "Updated Approach
to the Usage of Credit Estimates in Rated Transactions" published
in October 2009.


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


ALFA-BANK OJSC: Moody's Assigns 'Ba1' Rating to Sr. Unsecured Debt
------------------------------------------------------------------
Moody's Investors Service has assigned a long-term global local
currency debt rating to Alfa-Bank's senior unsecured debt.  The
rating carries a Stable outlook.  Any subsequent issuance of
senior unsecured Russian bonds by Alfa-Bank will be rated at the
same rating level subject to there being no material change in the
bank's overall credit rating.

The rating of Ba1 was assigned to these debt instruments:

  -- Ru.Ruble5,000M Senior Unsecured Regular Bond due 2016

                        Ratings Rationale

The assigned rating is in line with Alfa-Bank's deposit rating,
which is in turn based on (i) the bank's D BFSR (mapping to a
baseline credit assessment (BCA) of Ba2); and (ii) Moody's
assessment of a low probability of support in the event of need
from the Russian government (Baa1/Stable) -- which results in a
one-notch uplift from the bank's Ba2 BCA.

Headquartered in Moscow, Russia, Alfa reported IFRS assets of
US$22.6 billion and total equity of US$2.9 billion at
June 30, 2010.  The bank's net IFRS profit for the six months
ended June 20, 2010 was US$296 million.


BANK ROSSIYA: S&P Assigns 'B/B' Counterparty Credit Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'B/B' long- and short-term counterparty credit ratings to Russia-
based BANK ROSSIYA.  The outlook is stable.  At the same time S&P
assigned its 'ruA-' Russian national scale rating to the bank.

"The ratings reflect the risky operating environment in Russia,
BANK ROSSIYA's high single-name concentrations in the loan book
and funding base, some uncertainties regarding its strategy, as
well as potential risks related to its nonbanking investments,"
said Standard & Poor's credit analyst Ekaterina Trofimova.

S&P believes that the bank benefits from a selective lending
strategy and above-average asset quality, a high share of liquid
assets, a low risk trading appetite, and a strengthening
competitive position.

The ratings reflect BANK ROSSIYA's stand-alone credit profile and
do not include any uplift for extraordinary external support,
either from the shareholders or the government.

The chairman of the bank's board of directors, Russian businessman
Yury Kovalchuk, holds the largest stake of 28.6%.  S&P believes
that he has a strong influence on the bank's strategy.  However,
while business connections of Mr. Kovalchuk and the other owners
contribute to the bank's development and growth, they also
highlight its reliance on their continued business standing.

The bank has managed to maintain a low level of problem loans,
mostly due to its strategy of dealing with large corporate clients
from energy, manufacturing, and oil and gas trade and refining.
However, S&P views BANK ROSSIYA's credit policy as risky in terms
of single-name exposures and related-party lending.  In addition,
restructured loans totaled 11.5% of the loan portfolio.

The bank holds a number of investments in the financial industry
and media and S&P thinks that there are potential risks related to
BANK ROSSIYA's direct investments in nonbanking entities.

BANK ROSSIYA's major sources of funding are accounts of large
corporations.  These accounts proved to be quite stable during the
recent loss of confidence in the market, although they still may
be fairly volatile.

The bank's capitalization is moderate, in S&P's opinion, with an
estimated Standard & Poor's risk adjusted capital ratio of 5.6%
before adjustments and 4.7% after adjustments as of Dec. 31, 2010,
under Russian Accounting Standards.  S&P thinks that the bank's
capitalization level could weaken because of the bank's large
equity investments, low diversification of the loan book, and
rapid business expansion.  The bank's internal capital generation
capacity is sustainable, but limited.  The stable outlook reflects
BANK ROSSIYA'S sustainable business position and growing
franchise.

"S&P expects that the bank's key weaknesses will not lead to
deterioration in its creditworthiness in the medium term,"
said Ms. Trofimova.

S&P could lower the ratings if:

* Asset quality were to decline materially, or risk concentration
  to grow significantly;

* Rapid growth undermines capital adequacy;

* If S&P saw a considerable liquidity shortage;

* Problems arise at its subsidiaries; or

* The bank undertakes risky acquisitions that negatively affect
  its financial profile.

S&P could consider a positive rating action if:

* The bank significantly reduces its single-name concentrations
  and related-party exposures;

* The bank diversifies its business profile; and

* The bank significantly improves its capitalization.


IZHAVTO OJSC: Internal Affairs Probes Ex-Managers Over Bankruptcy
-----------------------------------------------------------------
Interfax news agency reports that investigation agencies at the
Ministry of Internal Affairs are investigating a criminal case in
which a number of managers at the IzhAvto OJSC and the SOK group
of companies stand accused of premeditated bankruptcy.

"The investigations committee at the Russian Ministry of Internal
Affairs is carrying out a preliminary investigation in a criminal
case relating to accusations that managers at the IzhAvto open
joint- stock company and SOK committed a crime covered by Article
196 of the Criminal Code of the Russian Federation (premeditated
bankruptcy)," the press-service of the investigations committee at
the Ministry of Internal Affairs told Interfax.

According to the department, during the period 2008-2009, Yuriy
Kachmazov, owner of the SOK group and the main shareholder at
IzhAvto, as well as a number of the company's managers, removed
IzhAvto liquidation property worth more than RUR6.7 billion
(US$229 million), Interfax discloses.

Interfax relates that the investigations committee at the Ministry
of Internal Affairs said Andrey Frolov and Yuriy Amelin, top
managers at IzhAvto, as well as Mikhail Dobyndo, the company's
former director-general, and Yevgeniy Strakhov, its director for
economics and finance, also took part in the withdrawal of funds,
cars and shares, including shares in the charter capital of other
businesses.

"As a result of this activity, in March 2010, Udmurtia's
arbitration court declared the IzhAvto open joint-stock company
bankrupt," Interfax quotes a statement from the press service as
saying.

According to Inferfax, the statement notes that defendants
Messrs. Kachmazov, Frolov, Amelin and Strakhov are hiding from
investigators and have been placed on the wanted list.

"At the present time, the investigation is establishing whether
the aforementioned individuals were involved in other crimes in
respect of the IzhAvto open joint-stock company," the
investigations committee at the Ministry of Internal Affairs, as
cited by Interfax, said.

IzhAvto OJSC was a Russian carmaker.


KOKS OAO: S&P Affirms 'B' Long-Term Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B' long-term corporate credit rating on Russia-based vertically
integrated coking coal, coke, iron ore, and pig iron producer OAO
Koks.  The rating was removed from CreditWatch where it had been
placed with positive implications on Jan. 17, 2011, following the
announcement of an upcoming IPO.  The outlook is stable.

"S&P affirmed its rating on Koks because the management cancelled
the IPO announced in January," said Standard & Poor's credit
analyst Elena Anankina.

S&P had expected the IPO to positively affect the company's
financial metrics and liquidity profile.  However, although these
benefits did not materialize, S&P expects Koks to be able to
comfortably finance its sizable capital expenditures and upcoming
maturities even without the IPO, thanks to the currently favorable
markets.

The rating on Koks is constrained by S&P's view of the company's
exposure to cyclical commodity markets and large capital-
expenditure needs, which it needs to finalize the modernization of
its pig iron facility and ensure 100% self-sufficiency in coking
coal and iron ore (up from 60% currently).  These constraints are
partly offset by the benefits of vertical integration and steadily
improving operating results in 2010.

According to management, in the first nine months of 2010, Koks
reported unadjusted EBITDA of RUB6.9 billion (US$229 million) and
unadjusted debt of RUB21.1 billion.  Koks' ratio of unadjusted
debt to EBITDA decreased to 2.3x in the first nine months of 2010
from 5.1x in 2009, and free operating cash flow (FOCF) turned
positive over the same period.

The stable outlook reflects S&P's expectation that Koks will
benefit from currently favorable raw materials prices and that S&P
thinks its credit metrics will remain comfortable in 2011.  S&P
expects Koks to maintain a fairly favorable cost position and
refrain from substantial dividends and acquisitions before the
capital-expenditure program is complete.  The stable outlook also
assumes that Koks will be able to roll over existing short-term
debt.

"If the company's key markets continue to be favorable and Koks is
able to achieve at least "adequate" liquidity, with the ratio of
liquid sources to liquidity needs of more than 1.2x, S&P could
take positive rating actions," said Ms. Anankina.  "Progress in
executing its capital-expenditure program could also contribute to
ratings upside."

Ratings downside could result from depressed conditions in the
company's key markets, which would likely lead to deteriorating
credit metrics, or from substantially weakened liquidity if the
company fails to refinance its RUB5 billion bonds well before they
mature in first-quarter 2012.


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


AYT DEUDA: S&P Puts 'BB' Rating on Class C Notes on Watch Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services has placed on CreditWatch
negative its credit ratings on AyT Deuda Subordinada I Fondo de
Titulizacion de Activos' class A, B, and C notes.

The rating actions follow S&P's review of the transaction, which
took into account the increasingly concentrated nature of the
portfolio that in its view is the result of continuing
consolidation in the Spanish banking sector.  In particular, S&P
note that exposure to one banking group now represents almost half
of the portfolio.

S&P is currently assessing the risks to the credit stability of
the ratings S&P has assigned to the transaction.  While S&P has
not yet concluded S&P's analysis, its initial assessment indicates
the possibility of multi-notch downgrades to all classes of notes.
S&P has therefore placed the notes on CreditWatch negative pending
the completion of its analysis.

AyT Deuda Subordinada I issued EUR298 million of notes in November
2006, backed by nine subordinated debt bonds issued by Spanish
savings banks.

     AyT Deuda Subordinada I Fondo de Titulizacion de Activos
         EUR298 Million Asset-Backed Floating-Rate Notes

              Ratings Placed on CreditWatch Negative

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


=============
U K R A I N E
=============


NADRA BANK: Temporary Administration Extended
---------------------------------------------
Dragon Capital reports that National Bank of Ukraine Governor
Serhiy Arbuzov said on Friday that the temporary administration at
Nadra Bank, introduced on Feb. 10, 2010, was extended for an
unspecified term.

According to Dragon Capital, NBU also announced a new UAH8.3
billion bailout proposal for Nadra, with half of the funds to be
provided by a private strategic investor and the other half by the
government in the form of a subordinated loan via state-owned
Ukreximbank.

International financial institutions including the World Bank and
the European Bank for Reconstruction and Development earlier
expressed their doubt as to the expedience of further capital
injections for Ukraine's bailed-out banks, Dragon Capital notes.

As reported by the Troubled Company Reporter-Europe on Nov. 15,
2010, Bloomberg News, citing Ekonomicheskie Izvestia newspaper,
said that the International Monetary Fund urged the Ukrainian
government and the central bank to liquidate Nadra.

Headquartered in Kiev, Ukraine, Bank Nadra reported total assets
of UAH24.8 billion (US$3.1 billion) and total equity of
UAH475 million (US$59.3 million) according to Ukrainian Accounting
Standards at year-end 2009.


PRIVATBANK AS: Moody's Changes Outlook on 'D-' BFSR to Stable
-------------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on the D- bank financial strength rating and the Ba3 local
currency long-term deposit rating of Privatbank.

                        Ratings Rationale

Moody's says the change of the outlook on Privatbank's ratings
demonstrates the stabilization of its credit profile, reflecting
(i) the gradual recovery of the Ukrainian economy; (ii) the bank's
entrenched position as the largest bank in Ukraine by total assets
and individual deposits; (iii) stabilization of the bank's asset
quality indicators in 2010, which, combined with healthy revenue
generation, adequate provisioning and regulatory capitalization,
should ensure that Privatbank remains well capitalized in the
medium term.

According to Moody's, Privatbank's D- BFSR, which translates into
a Baseline Credit Assessment of Ba3, is underpinned its strong
franchise and recognized name in Ukraine, where it is the largest
bank by total assets, loans and deposits, with a nationwide branch
network, and satisfactory financial fundamentals.  However, the
rating also takes into account some corporate governance issues,
including the bank's close affiliation with companies controlled
by its major shareholders.  The rating also reflects the
potentially understated aggregate exposure to related parties and
still-sizeable risk concentrations in the corporate loan
portfolio.

Privatbank's local currency deposit rating incorporates its Ba3
BCA and Moody's assessment of the probability of systemic support
from the Ukrainian government.  Although this support is assessed
as high -- due to the bank's leading market shares as the largest
bank in Ukraine -- it does not result in any uplift from the
bank's BCA because the support-provider rating of Ukraine is B2,
which is lower than the bank's BCA.

Privatbank's D- BFSR has limited upside potential in the near
term.  However, in the longer term, improvements in corporate
governance procedures, recurring profitability, and substantial
reduction in credit risk concentration could exert upward pressure
on the bank's ratings.  Improved economic capitalization and a
significant reduction in the perceived level of related-party
lending would also be positive rating drivers.  The bank's Ba3
local currency deposit rating is likely to move in tandem with its
BCA of Ba3.  The B3 foreign currency deposit and B1 foreign
currency debt ratings are constrained by the country ceilings for
Ukraine, and can be upgraded only if Moody's upgrades these
country ceilings.

Negative pressure could be exerted on Privatbank's BFSR and local
currency deposit rating following a substantial deterioration of
asset quality beyond current levels, a significant rise in
related-party transactions and/or liquidity problems.  Weakening
market positions or significant reputation damage -- to either the
bank or its major shareholders -- could also have negative rating
implications.  The bank's debt and deposit ratings, being
constrained by the respective country ceilings, are likely to
follow movements in those ceilings.

Moody's previous rating action on Privatbank was implemented on
October 12, 2010, when Moody's changed the outlook on the B3 long-
term foreign currency deposit rating and B1 foreign currency debt
rating of Privatbank to stable from negative.

Headquartered in Dnepropetrovsk, Ukraine, Privatbank reported
audited IFRS total assets, equity and net income of US$11.23
billion, US$1.49 billion and US$166 million, respectively at
YE2009.


RODOVID BANK: Transfer of Retail Deposits to Ukreximbank Likely
---------------------------------------------------------------
According to Dragon Capital, local media speculate Rodovid Bank's
retail deposits, which stood at UAH4 billion as of end-2010, and
branch network may be transferred to Ukreximbank, upon which
Rodovid may be either liquidated or converted into a bank for
distressed asset management, with its staff to be cut to 50
employees.

International financial institutions including the World Bank and
the European Bank for Reconstruction and Development earlier
expressed their doubt as to the expedience of further capital
injections for Ukraine's bailed-out banks, Dragon Capital notes.

As reported by the Troubled Company Reporter-Europe on Dec. 15,
2010, Bloomberg News, citing Interfax-Ukraine news agency, said
that Ukraine's central bank extended administration of Rodovid
from Dec. 16 through March 15.

On Nov. 15, 2010, the Troubled Company Reporter-Europe related
that, Bloomberg News, citing Ekonomicheskie Izvestia newspaper,
said the International Monetary Fund urged the Ukrainian
government and the central bank to liquidate Rodovid.

Rodovid Bank is based in Kiev.  The net assets of the bank were
estimated at UAH16,952.2 million as of January 1, 2010, the
credits and debts of clients were valued at UAH5,355.5 million,
and the equity of shareholders was estimated at UAH4,336.4
million, according to Ukrainian News Agency.


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


AEOLUS CDO: S&P Withdraws Ratings on Six Classes of Notes
---------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' and
withdrew, effective in 30 days' time, its credit ratings on the
class A, B, C, D, E, and W notes in Aeolus CDO Ltd.'s series
COLONNADE III.  At the same time, S&P removed the class A notes
from CreditWatch negative.

The rating actions follow publication of COLONNADE III's early
redemption payment date report, dated Feb. 1, 2011.  Noteholder
meetings held in January 2011 approved resolutions for early
redemption of the transaction.

In the case of early redemption and in accordance with COLONNADE
III's priorities of payments, the issuer makes swap termination
payments to the transaction's swap counterparty from available
collateral proceeds before distributing remaining amounts, if any,
to repay noteholders.

As reported in the early redemption report, there were
insufficient proceeds from the sale of collateral to cover swap
termination payments.  As a result, all noteholders experienced
principal losses.  S&P has therefore lowered its ratings on all
classes of rated notes to 'D (sf)' before withdrawing them.  The
ratings will remain at 'D (sf)' for a period of 30 days before the
withdrawal becomes effective.

The COLONNADE III series is a hybrid collateralized debt
obligation where the issuer initially took exposure through a
portfolio credit default swap to primarily European structured
finance securities.  The transaction closed in May 2007.

                           Ratings List

                          Aeolus CDO Ltd.
    EUR165.5 Million Secured Credit-Linked Floating-Rate Notes
                       Series COLONNADE III

Rating Lowered Removed from CreditWatch Negative, and Withdrawn[1]

                     Rating
                     ------
       Class        To                   From
       -----        --                   ----
       A            D (sf)               BB (sf)/Watch Neg
                    NR                   D (sf)

                 Ratings Lowered and Withdrawn[1]

                            Rating
                            ------
       Class        To                   From
       -----        --                   ----
       B            D (sf)               CCC- (sf)
                    NR                   D (sf)
       C            D (sf)               CCC- (sf)
                    NR                   D (sf)
       D            D (sf)               CCC- (sf)
                    NR                   D (sf)
       E            D (sf)               CCC- (sf)
                    NR                   D (sf)
       W            D (sf)               CCC- (sf)
                    NR                   D (sf)

      [1] The withdrawals become effective in 30 days' time.

                         NR -- Not rated.


ASSETCO PLC: Faces Funding Problems; May Ask Shareholders for Cash
------------------------------------------------------------------
Alistair Gray at The Financial Times reports that AssetCo plc has
warned that short-term funding problems might force it to ask
shareholders for cash after bid talks fell apart.

According to the FT, AssetCo said it needed GBP4 million (US$6.4
million) to settle debts as talks with bankers, including Lloyds
Banking Group, had taken longer than expected to conclude.  The FT
notes that the company also said it expected lenders to waive
"technical breaches" of banking covenants.

AssetCo had hoped to raise cash to meet its short-term debt
requirements by refinancing a GBP51 million facility, secured
against GBP62 million worth of assets, the FT discloses.  But
John Shannon, chief executive, who holds a near-30% stake, as
cited by the FT, said he was "disappointed" the company had "not
been able to deliver the refinancing in line with our original
time frame".

The FT relates that AssetCo said on Monday that it was in advanced
talks to set up a short-term debt facility of GBP3.5 million and
was considering a range of other options, including an equity
fundraising.

The company which disclosed two weeks ago that it was in bid talks
with an unnamed suitor, added that it had ended the discussions as
a result of the financing uncertainty, according to the FT.

Assetco PLC -- http://www.assetco.com/-- is a United Kingdom-
based holding company.  The Company is engaged in the provision of
management services to the emergency services market.  It is also
engaged in automotive engineering, the provision of asset
management services and the supply of specialist equipment to the
emergency services market.  The Company operates in one segment,
the Fire and Rescue Services.  The Fire and Rescue Services
segment provides management services to the fire and rescue
market.  Its subsidiaries include AssetCo Emergency Limited,
AssetCo Managed Services (ROI) Limited, AssetCo Bermuda Limited,
AssetCo Resource Limited, Simentra Limited, Supply 999 Limited,
AssetCo Municipal Limited and AssetCo Managed Services Limited.
In January 2010, the vehicle assembly business of UV Modular
Limited (UVM) was discontinued.  In September 2009, the Company
disposed its subsidiary, Auto Electrical Services (Manchester)
Limited.


AUTO WINDSCREENS: Falls Into Administration, 1,100 Jobs at Risk
---------------------------------------------------------------
Alex Hawkes at guardian.co.uk reports that Auto Windscreens has
gone into administration and threatens 1,100 jobs in the process.
The report relates that majority of the company's staff were told
to stop working after administrators from Deloitte were appointed.

The company will be talking to major customers in an effort to
find funds to continue trading and will be looking for a buyer,
according to guardian.co.uk

The report notes that a statement from Deloitte suggested the
company was in the midst of a turnaround plan, but that delays in
implementing a new IT system and a surprise drop in revenue
towards the end of last year had created a cashflow crisis.  "The
company had been in extensive discussions with a large number of
interested parties to provide the funding required to recapitalize
the business.  However, before a recapitalization could be agreed,
the company received a winding up petition from a large creditor
and had notice from one of its major customers that it was
terminating the contract," the statement from Deloitte said.

The large creditor was HM Revenue & Customs.

Chesterfield-based Auto Windscreens works for major motor
insurers, fleet businesses and private companies.  It has 68
fitting centres across the UK, 550 mobile units, a distribution
centre in Aston, Birmingham, and a call centre.


DUNDEE FOOTBALL CLUB: Transfer Dealings Remain Out of Bounds
------------------------------------------------------------
Robert Thomson at The Scotsman reports that Dundee Football Club
has failed in a bid to have its transfer embargo lifted by the
Scottish Football League.

Administrator Bryan Jackson met with SFL officials to plead the
club's case after he pushed through a CVA last week, starting the
process of relinquishing his control over their affairs, according
to The Scotsman.

The report notes that Dundee Football club was hit by a 25-point
deduction and a ban on signing players after going into
administration last year with crippling debts of GBP3.8 million.

Mr. Jackson sacked nine first-team players as well as management
team Gordon Chisholm and Billy Dodds in an attempt to balance the
books, The Scotsman says.  That has left manager Barry Smith with
just 12 players but, even though the wheels are in motion to come
out of administration, the SFL won't allow Dundee to add any new
faces until Jackson signs off his work at the club, which is
likely to be at the end of the season, the report relates.

"We spoke to the SFL about the transfer embargo and asked the
question.  But they have told us it will remain in place until we
come out of administration. It's disappointing but we will just
get on with things," The Scotsman quotes Chief Executive Harry
Maclean as saying.

Dundee Football Club -- http://www.thedees.co.uk/-- is a Scottish
football club.

                               *     *     *

As reported in the Troubled Company Reporter-Europe on October 18,
2010, Agence France-Presse said that Dundee Football Club was
placed into administration on October 14, 2010, after failing to
pay a GBP365,000 (US$583,525) tax bill.  The report related that
Dundee had no option but to accept administration after being
unable to negotiate the payment and the process was finally
confirmed on.


KL EXPRESS: Goes Into Liquidation
---------------------------------
Joanna Bourke at RoadTransport.com reports that United Pallet
Network (UPN) member KL Express Logistics has gone into
liquidation, leaving a deficiency of GBP287,892.

According to the report, the company owed creditors a total of
GBP359,841 when it appointed Isobel Brett of KSA Business Recovery
as company liquidator on January 31, 2011.

RoadTransport.com relates that after preferential creditors were
paid, there was only GBP7,056 available for unsecured claimants.
The firm leaves a total deficiency of GBP287,892.

The haulier, which had an O-licence for 11 vehicles and 11
trailers, became insolvent just three months after joining UPN to
cover Bromley and Dartford deliveries.  It joined from rival
pallet network Fortec.

KL Express Logistics is a Northfleet, Kent-based haulier.


LEGAL MARKETING: Management Buys Firm Out of Administration
-----------------------------------------------------------
IntroducerToday reports that Legal Marketing Services (LMS) has
been bought out of administration by its management team after
going into administration with GBP30 million of debts.

LMS had long been rumored to be in serious trouble, according to
IntroducerToday.  The report relates that the parent company, LMS
Holdings, which never traded, went very quietly into
administration on January 18, with the appointment of
administrators Zolfo Cooper.

The report discloses that what was apparently a 'news blackout'
worked, with no announcement and competitors not noticing.
Indeed, just two days after the administration, on January 20, the
LMS marketing department sent out what it emphasized to
journalists was a 'good news' e-mail saying that LMS was 20 years
old and looking forward to a 'year of celebration,'
IntroducerToday relates.

In reality, the firm marked its birthday by emerging from a
financial restructure in which its holding company shed huge
debts, IntroducerToday discloses.

The report notes that Legal Marketing Services Ltd and LMS Direct
Conveyancing have now been sold to Brabco 1019 Ltd, a company
owned by a seven-strong management team led by Andy Knee.
IntroducerToday relates that the business and assets of sister
company Energy Reports & Surveys (ERS) were sold to Brabco 1020
Ltd.

IntroducerToday recounts that LMS had first been backed by private
equity firm 3i, and then, in 2006, at the top of the housing
market, by RJD Capital, which took a 51% stake.  The report
relates that the deal had to be helped along by a large debt
element put into the business by Barclays.  Managing director Knee
had a third stake, of around 10%.  Critically, each of the three
shareholders put money in via debt, not equity, the report says.

IntroducerToday notes that Mr. Knee explained that the three
original stakeholders of the holding firm have now been bought out
by the new company.  For LMS, the trading company, nothing had
changed other than the ownership, he added.

IntroducerToday says that the LMS business did not carry any of
the private equity debt held by its parent holding company.
Graham Wild, one of the joint administrators, said that the deal
to buy back the firm saved all 100 jobs, the report adds.

Legal Marketing Services (LMS) handles conveyancing, energy
reporting and surveying.


OCEAN VIEW: Exec Under Police Probe Over GBP43-Mil. Property Scam
-----------------------------------------------------------------
Rob Smyth at Burton Mail reports that Colin Thomas is at the
centre of a Government and police investigation into a suspected
GBP43 million overseas property scam.  The Mail says Mr. Thomas is
currently being investigated by Staffordshire Police and is also
facing legal action from the Insolvency Service following the
collapse of his company Ocean View Properties International Ltd.

The Mail quotes a spokesman for Staffordshire Police as saying
that, "Following the collapse and liquidation of Ocean View
Properties International Ltd, Staffordshire Police is in receipt
of a number of complaints alleging fraud against the company.

"Staffordshire Police and the City of London Police are continuing
to liaise with the Official Receiver, who has a duty to report any
matters of criminal conduct uncovered during its investigation.

"Following an Ocean View Properties International Ltd creditors
meeting, Grant Thornton UK LLP were appointed as liquidators, and
they continue to concentrate on identifying and recovering, where
able, the assets of the company on behalf of the creditors.

"A file was submitted by Staffordshire Police to the Serious Fraud
Office for its consideration. The SFO has subsequently decided not
to carry out an investigation and Staffordshire Police is
currently considering the most appropriate way forward."

According to the Mail, the Insolvency Service will launch
disqualification proceedings against Mr. Thomas and other bosses
of Ocean View Properties.

                       Class Action Lawsuit

Meanwhile, the Burton Mail reports that a class action lawsuit to
recover money on behalf of dozens of Ocean View victims was filed
by a Spanish lawyer in Madrid on Friday.  The Mail relates that
the criminal claim for fraud and misappropriation of funds against
the directors of Ocean View was lodged in a Madrid court.

The Mail says the prosecuting lawyer is seeking more than
GBP6.5 million in damages for 70 claimants.

The company, whose founders included a convicted fraudster, used
the likes of England footballer Gareth Barry and television
property expert Martin Roberts to sell luxury apartments in Spain.

The company took deposits worth around GBP80,000 each from British
investors, but much of the cash disappeared as the homes failed to
materialize, according to the Mail.

Ocean View Properties International Ltd. was placed into
compulsory liquidation at the request of accountants Grant
Thornton in 2009.


TAYLOR WIMPEY: Moody's Assigns 'B2' Rating to GBP250-Mil. Notes
---------------------------------------------------------------
Moody's Investors Service has assigned a B2 (LGD4) rating to the
GBP250 million 10.375% senior unsecured notes (due 2015) issued by
Taylor Wimpey plc.  The notes are guaranteed by Taylor Wimpey UK
Limited, whereby Taylor Wimpey UK will cover any shortfall on the
amount due to noteholders (after taking into account all amounts
that noteholders recover or are entitled to recover from the
issuer and any other guarantor).  The final terms of the notes are
in line with the drafts reviewed for the provisional (P)B2 rating
of the notes.  Taylor Wimpey's B2 corporate family rating and
probability of default rating remain unchanged.  The outlook on
the ratings is stable.

                        Ratings Rationale

Moody's definitive rating on this issue of senior unsecured notes
is in line with the provisional instrument rating assigned on
November 24, 2010.  Moody's rating rationale was set out in a
press release issued on that date.

Moody's most recent rating action on Taylor Wimpey was implemented
on November 24, 2010, when the rating agency assigned a first-time
CFR and PDR of B2 and a provisional (P)B2 senior unsecured rating
to the proposed senior unsecured notes with a loss given default
assessment of LGD4.

Taylor Wimpey is one of the top three homebuilders in the UK and
is also one of the top ten homebuilders in North America, with
operations in the US, where it trades as Taylor Morrison, and in
Ontario, Canada, where it trades as Monarch.  The company also
operates in Spain.  Total reported revenues and consolidated net
income for the trailing 12-month period ending July 4, 2010, were
GBP2.68 billion and GBP49 million respectively.


THOMPSON DEVELOPMENTS: Goes Into Receivership, Owes GBP100MM++
--------------------------------------------------------------
BBC News reports that Thompson Developments has just entered
receivership and has total bank borrowings of more than GBP100
million.  The report relates that Ulster Bank has appointed a
receiver to three sites owned by the company.

The sites are in Beragh, Ballagh Road in Fivemiletown and Cooley
Road in Sixmilecross -- all in County Tyrone, according to BBC
News.

Last year, BBC News recounts, Anglo Irish Bank appointed a
receiver to a further 19 sites owned by the company, which is
based at Drumnabreeze House in Magheralin.

The report relates that the company's last set of accounts showed
it had outstanding bank loans of more than GBP78 million.  They
covered the year up to the end of April 2008, BBC News notes.  In
that accounting period, it recorded a loss of over GBP1.7 million,
giving it a net deficit of GBP7.7 million, BBC News says.

Last month, the report discloses, the Ulster Bank also placed a
sister company, Thompson Lennox, into receivership.  BBC News
relates that another related company, TB Homes, has also had three
sites placed in to receivership.

Thompson Developments is a County Down developer.


                            *********

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, Psyche A. Castillon, Julie Anne G. Lopez,
Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman,
Editors.

Copyright 2011.  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.


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