TCREUR_Public/110310.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, March 10, 2011, Vol. 12, No. 49



INTERNATIONAL BANK: Fitch Puts D/E Individual Rating on Neg. Watch


MOSTSTROY AD: Sofia Court Starts Bankruptcy Proceedings
PETROL AD: Fitch Affirms Long-Term Issuer Default Rating at 'CC'

C Z E C H   R E P U B L I C

SAZKA AS: Administrator Wants to Ban Managers From Handling Assets


COEUR DEFENSE: Cour de Cassation Overturns 2010 Bankruptcy Ruling


GROHE HOLDING: Moody's Upgrades Corporate Family Rating to 'B2'
GROHE HOLDING: S&P Assigns 'B-' Rating to EUR400-Mil. Senior Notes
HECKLER & KOCH: Moody's Junks Corporate Family Rating From 'B3'


* GREECE: One in Two Businesses Need to Refinance Debt, Poll Shows
* Moody's Downgrades Greece's Government Bond Rating to 'B1'


KAUPTHING BANK: Owes Money to 70 Indian Companies


CAIRN HIGH: S&P Affirms 'CC' Ratings on Four Classes of Notes
COALPORT BUILDING: High Court Lifts Winding-Up Order
HOUSE OF EUROPE: S&P Cuts Ratings on Various Notes to 'CCC- (sf)'
KILDARE SECURITIES: S&P Cuts Rating on Class D Notes to 'BB (sf)'
MURPHY'S WORLD: Goes Into Liquidation; 30 Jobs Lost

SUNDAY TRIBUNE: Receiver Sues IMOS Over Fake Newspaper


HYVA GLOBAL: Moody's Assigns 'B1' Corporate Family Rating
HYVA GLOBAL: S&P Assigns 'B+' Long-Term Corporate Credit Rating


EVROFINANCE MOSNARBANK: Fitch Gives Pos. Outlook; Keeps B+ Rating
* SWEDEN: Corporate Failures Up 5% to 500 in February 2011


VTB BANK: Fitch Assigns 'B+' Rating to Senior Unsecured  Bonds

U N I T E D   K I N G D O M

ACE: Goes Into Administration, Ceases Trading & Axes 22 Jobs
CONNAUGHT PLC: Landscape Unit Sale Saves 2,700 Jobs
FENCHURCH INT'L: Goes Into Administration on High Labor Costs
MODEC: Liberty Electric Seeks to Acquire Firm
TASC GROUP: Goes Into Administration


* Upcoming Meetings, Conferences and Seminars



INTERNATIONAL BANK: Fitch Puts D/E Individual Rating on Neg. Watch
Fitch Ratings has placed International Bank of Azerbaijan's
ratings, including its 'BBB-' Long-term Issuer Default Rating, on
Rating Watch Negative.

The RWN on the Long-term IDR reflects greater uncertainty about
the readiness of the Azerbaijan authorities to provide timely
assistance to IBAR, given the prolonged failure to recapitalize
the bank and bring it into compliance with prudential regulations
and loan covenants.  The RWN also takes into account ongoing
discussions within the government about future strategy towards
IBAR, in particular the possibility of its further privatization,
which could result in the state's stake falling below 50%.

Fitch is also increasingly concerned about the implications for
government support of the current ownership structure, in which
the Ministry of Finance barely owns a majority stake (50.2%).
Fitch does not exclude the possibility that delays with IBAR's
recapitalization are partly due to financial constraints of
minority shareholders.  Fitch also notes IBAR's significant
lending to private related-party entities, and cannot rule out the
possibility that this would lead the Azerbaijan authorities to
want beneficiaries of these related party borrowers to participate
in any support package together with the government.  However, the
lack of transparency on the ultimate holders of the minority
stakes complicates any analysis of the relationship between
government and private shareholders.

At the same time, Fitch's view of the Azerbaijan authorities'
propensity to provide assistance continues to be supported by
IBAR's dominant market shares, its part policy role and its
moderate size relative to the authorities' financial resources.
At end-2010, IBAR accounted for over 40% of banking sector assets
and 24% of retail deposits.  However, its total liabilities at
end-2010 were equal to a moderate 13% of 2010 GDP, and the bank's
external liabilities equated to 4% of GDP or 7% of the combined
sovereign wealth fund and FX reserves.  In light of these factors,
any downgrade of IBAR's Long-term IDR would likely be limited to
one notch, to 'BB+'.

The RWN on the 'D/E' Individual rating reflects the deterioration
in IBAR's standalone credit profile in light of prolonged breaches
of regulatory capital adequacy ratios and concerns about the
bank's asset quality.  Since January 2010, IBAR's total capital
adequacy ratio has been below the 12% regulatory requirement (at
end-February 2011 the ratio was 10.45%), while at end-2010
reported NPLs (loans overdue by 90 days) stood at 14.4% and
reserve coverage of these was a moderate 55%.  IBAR has AZN580m
(equal to 12% of liabilities) of bank borrowings maturing in
April-December 2011, and will need to refinance these, generate
additional liquidity internally or receive funding support to
repay these facilities, given the limited liquid assets currently
on the balance sheet.

Fitch expects to resolve the RWN based on: the authorities'
actions, if any, to recapitalize IBAR; the development of
privatization plans for the bank; Fitch's review of disclosures in
the bank's audited 2010 IFRS accounts, including in respect to
asset quality; and the availability of sufficient liquidity to
meet scheduled wholesale debt repayments in 2011.

The rating actions are:

  -- Long-Term Foreign Currency IDR: 'BBB-'; placed on RWN
  -- Short-Term Foreign Currency IDR: 'F3'; placed on RWN
  -- Individual Rating: 'D/E'; placed on RWN
  -- Support Rating: '2'; placed on RWN
  -- Support Rating Floor: 'BBB-'; placed on RWN


MOSTSTROY AD: Sofia Court Starts Bankruptcy Proceedings
Elizabeth Konstantinova at Bloomberg News reports that the Sofia
Court of Appeal started bankruptcy proceedings for Moststroy AD.

Bloomberg relates that the company said in a filing to the
Bulgarian Stock Exchange on March 8 that the court decided to
declare the company insolvent since Sept. 30 and scheduled a
meeting of creditors for April 4.  The company said the court has
also appointed a receiver, Bloomberg reports.

According to Bloomberg, the court's decision overturns a Dec. 21
ruling of the Sofia City Court rejecting Moststroy's insolvency
claim on the grounds the company had sufficient assets for debt

As reported by the Troubled Company Reporter-Europe on Oct. 11,
2010, Bloomberg News said Moststroy filed for insolvency after all
its bank accounts were frozen because of unpaid debts.  Bloomberg
disclosed Moststroy said it had no funds to repay a loan borrowed
from the United Bulgarian Bank, a unit of the National Bank of
Greece SA, which was due on May 31.  Its construction machines and
other equipment leased from Interlease EAD were seized by
Interlease, which canceled the contracts, Moststroy, as cited by
Bloomberg, said.

Moststroy AD is a construction company based in Bulgaria.  The
company participates in the construction of the country's high-
profile Trakiya motorway.  The company is controlled by Bulgarian
billionaire Vassil Bozhkov.

PETROL AD: Fitch Affirms Long-Term Issuer Default Rating at 'CC'
Fitch Ratings has affirmed Bulgaria-based fuel distributor Petrol
AD's Long-term Issuer Default Rating at 'CC' and senior unsecured
rating of 'CC' for its EUR100 million notes, due in October 2011.
Fitch has simultaneously removed both ratings from Rating Watch
Negative, where they were placed on July 28, 2010.  The Recovery
Rating on the notes is 'RR4'.

The resolution of the RWN reflects Petrol AD's improved cash flow
generation in 2010, mainly thanks to the fuel margin improvement
in the Bulgarian market and the cost-cutting implemented by the

The ratings incorporate the company's weak credit ratios and
corporate governance standards compared with other oil refining
and/or fuel-marketing companies rated by Fitch.  The ratings
reflect the company's high refinancing risk, predominantly related
to the EUR100 million notes due in October 2011, which accounts
for the vast majority of the company's debt.  The company's
currently available liquidity is insufficient to repay the notes.
However, Fitch understands that Petrol AD plans to redeem the
EUR100 million notes by either raising new bank funding or,
alternatively, through a sale and lease-back transaction in the
next few months.

Petrol AD is a leading fuel distributor in Bulgaria.  It operates
a wholesale and retail distribution business.

C Z E C H   R E P U B L I C

SAZKA AS: Administrator Wants to Ban Managers From Handling Assets
CTK, citing the insolvency register, reports that Josef Cupka, the
preliminary insolvency administrator of Sazka, has asked the
Municipal Court in Prague to ban Sazka managers from handling the
company's assets unless they do so with his approval.

Mr. Cupka criticized the fact that Sazka's management had last
Friday approved two contracts with the firm Gladiolus, set up by
companies Penta and E-Invest, which want to enter Sazka, CTK
relates.  The other contract sets up a new body, a controlling
committee that will comprise mostly of Gladiolus representatives,
CTK discloses.  The committee is to give instructions to the Sazka
board, under a sanction of CZK300 million in case the board fails
to fulfil them, CTK says.  According to CTK, Mr. Cupka said that
Sazka's steps are in "sharp contradiction" with the insolvency

CTK notes that Prague Municipal Court spokeswoman Martina
Lhotakova said the content of Mr. Cupka's proposal is almost
identical with a previous proposal for injunction filed by the
group KKCG, which the court has met only partially.  According to
CTK, Sazka spokesman Jan Tuna said the information in Cupka's
proposal were untrue, incomplete and distorted.

CTK relates that KKCG on Tuesday repeatedly asked the court to
issue an order that Sazka managers can take certain steps only
with a written approval of the preliminary insolvency
administrator.   Like Mr. Cupka's proposal, KKCG's step is a
reaction to Sazka board's approval of contracts with Gladiolus at
a secret meeting, CTK notes.

Ms. Lhotakova, as cited by CTK, said the court would decide on
both Mr. Cupka's and KKCG's proposals by Wednesday.

Sazka on Tuesday appealed against the appointment of Cupka as a
preliminary administrator, questioning Cupka's impartiality, CTK

According to CTK, Sazka pointed to the fact that Mr. Cupka had in
the past been involved in bankruptcy proceedings against
entrepreneur Vaclav Fischer.  CTK notes that Sazka said Fischer's
creditors at that time included Karel Komarek's group KKCG that is
eyeing Sazka at present.  Sazka, as cited by CTK, said that in
addition, the administrator failed to be appointed in line with
objective conditions set by the insolvency law.

Sazka is facing two insolvency petitions at present, cTK
discloses.  One of them has been filed by KKCG, the other by
entrepreneur Radovan Vitek, who claims to be Sazka's biggest
creditor, CTK notes.

Sazka AS is a provider of lotteries and sport betting games in the
Czech Republic.


COEUR DEFENSE: Cour de Cassation Overturns 2010 Bankruptcy Ruling
Heather Smith at Bloomberg News reports that Coeur Defense,
Europe's largest office complex, won a bid to overturn a lower
court's decision to throw out its 2008 bankruptcy filing.

According to Bloomberg, the Cour de Cassation, France's highest
appeals court, said the lower tribunal erred in its 2010 ruling
that the building owner's difficulties in renegotiating loan terms
weren't enough to qualify it for creditor protection.

Lehman bought the complex for EUR2.11 billion (US$2.9 billion), a
record for the Paris market, in March 2007, Bloomberg recounts.
Heart of La Defense SAS, the vehicle Lehman had formed to buy it,
obtained creditor protection in November 2008, Bloomberg
discloses.  That was two months after Lehman's collapse, when HOLD
and parent Dame Luxembourg Sarl couldn't reach a new hedging
agreement on EUR1.6 billion of loans taken to fund the purchase,
Bloomberg discloses.

Lehman had issued commercial mortgage-backed securities against
the purchase loans, called Windermere XII FCT bonds, managed by
Paris-based EuroTitrisation, which made the earlier appeal
fighting the bankruptcy filing and opposed HOLD's appeal to the
Cour de Cassation, Bloomberg relates.

"EuroTitrisation will proceed with a thorough analysis of these
decisions and of their consequences and will assert the interests
of the creditor which it represents before the court of appeal of
referral," Bloomberg quotes the group as saying in an e-mailed on

Coeur Defense, designed by Jean-Paul Viguier and completed in
2001, is in the Paris financial district of La Defense.  It was
valued at EUR1.8 billion following Lehman's collapse, according to


GROHE HOLDING: Moody's Upgrades Corporate Family Rating to 'B2'
Moody's Investors Service upgraded Grohe Holding GmbH's Corporate
Family Rating to B2 from B3 and Probability of Default Rating to
B1 from B3.  Concurrently, Moody's upgraded to B2 from B3 the
rating on Grohe's outstanding senior secured Notes, and to B3 from
Caa1 the EUR335 million senior Notes (due in October 2014).
Moody's also assigned a (P)B2 rating to Grohe's new EUR400 million
senior secured Notes (due in 2017/ 2018) announced.  The outlook
on all ratings is stable.

                        Ratings Rationale

The upgrade reflects strong operating performance of Grohe
supported by the company's successful strategy in its key products
and markets as well as an improved debt maturity profile.  As part
of the partial refinancing of the capital structure announced,
Grohe will issue a new five year EUR150 million revolving credit
facility to replace the existing EUR150million RCF maturing in
2012.  Grohe will also issue EUR400 million of new senior secured
notes due in 2017/2018 to refinance EUR400 million of the existing
EUR800 million senior secured floating rate notes maturing in
2014.  The floating-rate tranche of the new notes matures in
September 2017, six months before the fixed-rate tranche due in
March 2018.

"Against the backdrop of stabilizing but still challenging trading
conditions, Grohe has achieved strong growth in sales and EBITDA
and substantial de-leveraging from 2009 level, which has exceeded
Moody's expectations," said Tanya Savkin, Moody's lead analyst for
Grohe.  "The company's leverage still remains high, at 6.9x as of
the end of 2010 (Moody's adjusted).  However it is offset by solid
EBITDA margins which have remained stable at around 20-21% in the
past three years.  The refinancing plan undertaken will remove the
uncertainty about the RCF maturing in January 2012 and improve the
maturity profile of the company, which together support the B2

In 2010 Grohe reported a 19% growth in sales and 29% growth in
normalized EBITDA, reversing the negative trend seen in 2009, when
the company's CFR was downgraded from B2 to B3.The strong
performance demonstrates the success of the company's efforts to
develop strong portfolio of new products, expand its geographical
and distribution reach as well as improve productivity and reduce
costs.  However, Moody's notes the group's exposure to raw
material prices which will remain a key constraint for the
company's ratings.

The voluntary tender offer for shares in Joyou AG in China
announced on Feb. 14 2011 will strengthen the company's position
in the fast-growing Asian markets and provide further geographical
diversification away from its key region of Europe.  As a result
Grohe's ownership of Joyou AG will increase to at least 30%.  The
acquisition, subject to regulatory approvals, will be made through
Grohe Asia AG, a joint-venture which is outside of the restricted

Moody's acknowledges the group's positive cash flow generation
throughout 2010, before payment of the EUR54.8 million European
Commission fine in September 2010.  This is due to improved
performance and reduced restructuring costs compared to previous
years and has also helped to build additional liquidity.  The new
capital structure includes a single covenant of minimum EBITDA in
the RCF, and no debt repayment before 2014.  The five-year RCF has
a springing maturity feature leading to potentially accelerated
re-financing date, if the 2014 notes have not been refinanced
three months prior to their maturity date.  The PDR of B1, one
notch above CFR of B2, reflects the covenant-lite nature of the
structure leading to the assumption of 35% recovery rate.

The stable outlook reflects Moody's expectations that Grohe is
well positioned for cyclical recovery in the water technology
products market and will continue to maintain stable growth in
sales and profitability.

While Moody's believes that a rating upgrade is unlikely in the
short- to-medium term due to Grohe's high leverage, positive
rating pressure could develop if there is a continued improvement
in the company's profitability leading to EBITA/interest
increasing towards 2.5x; gross debt/EBITDA approaching 5.0x; or
free cash flow / debt at around 6%.  Negative rating pressure
could develop if the company fails to maintain its gross
debt/EBITDA ratio below 7.0x; EBITA/Interest ratio falls towards
1.5x; or if free cash flow / debt falls towards 2%.

Headquartered in Dsseldorf, Germany, Grohe Holding GmbH is a
leading single-brand manufacturer and supplier of sanitary
fittings for bathrooms and kitchens.  Grohe operates six
production facilities, which are located in Germany, Portugal,
Canada and Thailand.  In 2010, the company reported revenue of
EUR980 million and Normalized EBITDA of EUR200 million.

GROHE HOLDING: S&P Assigns 'B-' Rating to EUR400-Mil. Senior Notes
Standard & Poor's Ratings Services said that it assigned its 'B-'
issue rating to the proposed EUR400 million senior secured notes
to be issued by German-based sanitary fittings manufacturer Grohe
Holding GmbH (B-/Stable/--).  The recovery rating on the proposed
senior secured notes is '3', indicating its expectation of
meaningful (50%-70%) recovery in the event of a payment default.

In addition, S&P assigned its 'B+' issue rating to the proposed
super senior secured revolving credit facility to be issued by
Grohe's subsidiaries Grohe Beteiligungs GmbH and Grohe AG.  The
recovery rating on the proposed super senior RCF is '1',
indicating its expectation of very high (90%-100%) recovery
prospects in the event of a payment default.

At the same time, S&P affirmed the issue rating on Grohe's
existing EUR800 million senior secured notes due 2014 at 'B-', on
the understanding that the proceeds of the proposed notes will be
used to pay down EUR400 million of the existing notes.  The
recovery rating on the existing notes is unchanged at '3'.

S&P also affirmed the issue rating on Grohe's senior subordinated
notes due 2014 at 'CCC'.  The recovery rating on these notes is
unchanged at '6', indicating its expectation of negligible (0%-
10%) recovery in the event of a payment default.

The recovery ratings on the existing notes remain unchanged as a
result of what S&P considers to be only minor changes in Grohe's
debt structure.  This is because the proceeds from the proposed
notes will be used to redeem EUR400 million of the existing senior
secured notes maturing in 2014.  Its assessment is also based on
its assumption that Grohe will be successful in executing the
proposed super senior RCF in conjunction with the issuance of the
proposed notes.

                        Recovery Analysis

The proposed senior secured notes will rank pari passu with the
existing EUR400 million senior secured notes due 2014 and will
benefit from the same security and guarantees.  These guarantees
primarily comprise a first-lien claim over extensive asset
security (such as bank accounts, inventory, real estate, trade
receivables, and intellectual property) and share pledges.  In
addition, a guarantee package provided to both classes of senior
secured debtholders will cover the majority of the Grohe group's
EBITDA and assets (currently about 80%).  The super senior RCF
will rank ahead of the proposed and existing senior secured notes
and will benefit from the same security package, in respect of the
entitlement to security proceeds, plus some additional guarantees
from Grohe Holding and some Spanish and Italian subsidiaries.

The security package for the existing senior subordinated notes
due in 2014 is rather weak, in its view, consisting of some
second-ranking share pledges and security over intercompany loans.

The documentation for the proposed super senior RCF will also
include one maintenance covenant (an EBITDA floor of EUR100
million).  It will also contain a change-of-control clause and a
springing maturity provision (whereby the RCF could be repaid
three months before the existing bonds mature, should the latter
not have been refinanced).  The RCF documentation will be governed
by English law.

The indenture governing the existing EUR800 million senior secured
notes restricts, among other things, the ability of the Grohe
group to raise additional debt, pay dividends, sell certain
assets, or merge with other entities.  The documentation contains
a change-of-control clause, and is governed by New York law.

The indenture governing the proposed EUR400 million senior secured
notes limits Grohe in the same way as it does the existing notes.
However, an important part of the covenants could be suspended if
the notes are rated at investment grade.  The documentation
contains a change-of-control clause, and is governed by New York

The documentation for the EUR335 million senior subordinated notes
contains similar restrictions in terms of additional debt,
dividend distribution, sales of assets, and mergers and
acquisitions.  However, it does not contain a senior leverage
covenant restricting additional debt incurrence (contrary to the
documentation for the existing and proposed notes).  Similar to
the existing and the proposed senior secured notes, the
documentation for the senior subordinated notes contains a change-
of-control clause, and is governed by New York law.

In order to determine recoveries, S&P simulates a default.  Under
its hypothetical scenario, S&P envisage, among other things, a
prolonged and severe deterioration in the construction market and
a weak macroeconomic environment from 2011 onward.  In its
simulation, Grohe experiences a prolonged negative trading
environment leading to pressure on its revenues.  In its view,
increasing pressure on margins would result from a higher
proportion of fixed costs on the back of a stronger-than-
anticipated decline in revenues, together with some increased raw
material prices.  Furthermore, S&P assume that Grohe will be
unable to repay its existing EUR400 million senior secured notes
and EUR355 million senior subordinated notes after having redeemed
its RCF early, triggered by the springing maturity provision.
This would lead to a default in 2013, with EBITDA declining to
about EUR143 million.

At the hypothetical point of default, S&P values Grohe at about
EUR860 million using a combination of discounted cash flow and
market multiple methodologies.  S&P believes that, in a default,
Grohe would be reorganized rather than liquidated, given its view
of the strength of the group's brand.

From this enterprise value, S&P deducts priority liabilities of
EUR152 million, comprising EUR60 million of enforcement costs and
EUR92 million of pensions deficit.  This results in a residual
value of EUR707 million to reimburse: first, the proposed RCF;
second, the senior secured notes; and third, the senior
subordinated notes.

S&P estimates that the outstanding amount of the super senior RCF,
including six months of prepetition interest at the hedged rate,
would be about EUR155 million at default.  This results in
recovery prospects of between 90%-100%, underpinning its recovery
rating of '1' on this debt.

There is sufficient value remaining for 50%-70% recovery for the
pari passu-ranking proposed and existing senior secured notes,
which S&P estimates at EUR833 million (including six months of
prepetition interest).  This supports its recovery rating of '3'
on these instruments.

There would be no value left for the senior subordinated notes.

                          Ratings List

                           New Rating

                       Grohe Holding GmbH

            Senior Secured Debt[1]                 B-
              Recovery Rating                      3

                            Grohe AG
                     Grohe Beteiligungs GmbH

            Revolving Credit Facility*              B+
               Recovery Rating                      1

                        Ratings Affirmed

                       Grohe Holding GmbH

            Senior Secured Debt                    B+
            Senior Secured Debt                    B-
             Recovery Rating                       3
            Senior Subordinated Notes              CCC
             Recovery Rating                       6

                     Grohe Beteiligungs GmbH

            Senior Secured Debt[2]                 B+
             Recovery Rating                       1

      [2] Guaranteed by Grohe Holding GmbH.
      [1] Grohe Beteiligungs GmbH.

HECKLER & KOCH: Moody's Junks Corporate Family Rating From 'B3'
Moody's Investors Service has downgraded these ratings of Heckler
& Koch GmbH: the corporate family rating to Caa1 from B3; the
probability-of-default rating to Caa1 from B3; and the rating on
the company's EUR120 million senior unsecured notes to Caa1 from
B3.  The ratings have been placed on review with direction

                        Ratings Rationale

The downgrade to Caa1 reflects an increasing risk associated with
the refinancing of the company's EUR120 million notes that mature
in July 2011.  On Feb. 28, 2011, HK announced its plan to issue
new notes with a face value of around EUR100 million by the end of
the second quarter of 2011.  The agency cautions that the
envisaged timeline leaves very limited headroom for any delays in
the execution of this process and that a possible failure to
refinance the notes could also have negative repercussions on
overall recovery prospects.  While Moody's notes that HK has a
relatively healthy capital structure, Moody's caution that a
successful refinancing will also depend upon market conditions and
external factors and could be impacted by concerns around an
additional layer of debt in form of EUR165 million PIK notes at
Heckler & Koch Beteiligungs GmbH, which is however outside the
restricted group of the outstanding notes.

In Moody's view, this very tight timeframe as well as the lack of
readily-available contingency funding plans are indications of an
aggressive financial policy which was also indicated by dividend
payouts of around EUR16 million in 2010.

Nevertheless, the agency continues to acknowledge the solid
operating performance of the company as observed over the last
years.  According to preliminary figures published by HK, revenues
and profitability could again be improved in 2010 and should lead
to a pension and lease adjusted debt/EBITDA ratio of around 3x per
year-end 2010.

The rating review will focus on the progress in refinancing the
EUR120 million senior unsecured notes due July 2011.

Moody's notes that the ratings could be upgraded again, if (i) HK
manages to successfully refinance the EUR120 million notes, (ii)
the agency gains comfort in a refinancing strategy regarding debt
at the holding level of Heckler & Koch Beteiligungs GmbH and (iii)
the operating performance continues to be positive.

Should HK not be able to refinance its EUR120 million senior
unsecured notes, the ratings could be downgraded by several
notches as this would trigger a default event.  In addition, any
material shifts within the restricted group, caused for example by
a simultaneously refinancing of the EUR 165 million PIK notes
outstanding at the level of HKB, could place downward pressure on
the ratings if this were to result in higher financial leverage
for the company.

Moody's most recent rating action on HK was implemented on
Dec. 1, 2010, when the CFR was downgraded to B3 from B2, the PDR
to B3 from B1, the rating on the EUR120 million worth of senior
unsecured notes to B3 from B2, and all ratings were placed under
review for possible downgrade.


Issuer: Heckler & Koch GmbH

  -- Probability of Default Rating, Downgraded to Caa1 from B3

  -- Corporate Family Rating, Downgraded to Caa1 from B3

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1
     from B3

On Review Direction Uncertain:

Issuer: Heckler & Koch GmbH

  -- Senior Unsecured Regular Bond/Debenture, Placed on Review
     Direction Uncertain, currently


* GREECE: One in Two Businesses Need to Refinance Debt, Poll Shows
Agence France-Presse, citing research by auditors Ernst & Young,
reports that one in two leading businesses in recession-hit Greece
will need to refinance their loans or debt obligations over the
coming year.

According to AFP, the study found that 48% of Greek firms will
have to raise new loans amid deteriorating financial conditions in
the country, which is itself laboring under a public debt of over
EUR300 billion (US$420 billion).

Some 34% respondents said that access to funding will not be a
problem for their organizations in the next 12 months, AFP

AFP says nearly fifty executives from Greek companies in 11
industry sectors with at least EUR10 million (US$14 million) in
revenue were polled for the study.  Seventy-percent of the
businessmen polled by Ernst and Young said the country's finances
will take between two and five years to recover, AFP notes.

* Moody's Downgrades Greece's Government Bond Rating to 'B1'
Moody's Investors Service has downgraded Greece's government bond
ratings to B1 from Ba1, and assigned a negative outlook to the
rating.  The rating action completes a review that commenced on
Dec. 16, 2010.

Moody's decision to downgrade Greece's rating is driven by three

1.) The fiscal consolidation measures and structural reforms that
    are needed to stabilize the country's debt metrics remain very
    ambitious and are subject to significant implementation risks,
    despite the progress that has been made to date.

2.) The country continues to face considerable difficulties with
    revenue collection.

3.) There is a risk that conditions attached to continuing
    support from official sources after 2013 will reflect solvency
    criteria that the country may not satisfy, and result in a
    restructuring of existing debt.  Moreover, the risk of a post-
    2013 restructuring might lead the Greek authorities and
    investors to participate in a voluntary distressed exchange
    before that time.

The negative outlook on the B1 rating reflects Moody's view that
the country's very large debt burden and the significant
implementation risks in its structural reform package both skew
risks to the downside.

Greece's country ceilings for bonds and bank deposits are
unaffected by the rating action and remain at Aaa (in line with
the Eurozone's rating).  Greece's Non Prime (NP) short-term rating
is also unaffected by this action.

                        Ratings Rationale

Moody's recognizes the very significant progress that Greece has
made in implementing a large fiscal consolidation and introducing
the legislation required to support a wide-ranging structural
reform program.  However, Moody's believes that the Greek
government still faces a very significant challenge in its
continued execution of the measures required to both increase
revenue and achieve efficiency savings as part of the austerity
program.  Whether relating to improvements in the operating
efficiency of state-operated enterprises, to the savings required
in the health service or in military expenditure, or to the
implementation of deregulation measures passed by parliament, the
task facing officials and managers remains enormous.  Moody's
therefore continues to see large implementation risks to the
government's reform plans and, while much of the enabling
legislation has been passed, implementation progress has not been
sufficiently rapid to mitigate the rating agency's concerns.

Secondly, government revenues have been slow to rebound, which is
in part the result of a continued weakness in tax collection
mechanisms that Moody's anticipates will improve only slowly.
Moody's has long attached great importance to the implementation
of measures to increase government revenues alongside the planned
cost-cutting measures.  As previously stated, the rating agency
continues to place particular emphasis on measures to combat the
endemic tax evasion that has contributed to the deterioration in
Greece's creditworthiness.  While the Greek government has made
some progress with the collection of value-added taxes (VAT),
Moody's notes that progress on income tax collection has been
slower to improve -- indeed, revenue shortfalls recorded in 2010
contributed to the upward revision in the country's deficit
projections for that year.  Moreover, Moody's expects income tax
collections to be adversely affected by significant administrative
hurdles and by the inevitable resistance to tax compliance among
parts of Greek society.  Legislation to address these issues is
currently before parliament, but will be challenging to implement,
both because of human resource limitations (such as skills
shortages) and because of vested interests that will be resistant
to change.

The third driver of the rating action is the lack of certainty
surrounding (i) the precise nature and conditions of support that
will be available to Greece after 2013, and (ii) its implications
for bondholders.  Moody's acknowledges that the IMF and European
authorities have expressed very strong support for Greece provided
that the country follows through with this economic program.  The
rating agency's baseline assumption is that this support will
continue to be forthcoming and that the Greek authorities will
continue to do their best to comply with the conditions contained
in the Memorandum of Understanding.  However, public statements by
European officials have suggested that additional liquidity
support after 2013 would be conditional on a solvency evaluation,
the result of which is uncertain at this point in time.  If Greece
were viewed as insolvent at this time, there is some possibility
that private creditors would be expected to bear some losses.

Moody's also notes that discussions are reportedly underway among
Eurozone policymakers on the design of a longer-term support
mechanism, and those discussions may result in changes to the
terms of credit provided to Greece by the Troika.  Although such
changes may reduce the pace and magnitude of the deterioration in
Greece's debt affordability metrics, they are unlikely to have a
very large impact on the overall debt burden, and would not
therefore directly address the issues that are of greatest

     Moody's Central Scenario -- and What Could Undermine It

Moody's central scenario remains that bondholders will not bear
losses.  However, the rating agency believes that the likelihood
of a default or distressed exchange has risen since its last
downgrade of the Greek government debt rating in June 2010.

Moody's does not believe that continued liquidity support by the
Troika and an event of default (including, but not limited to, a
distressed exchange via a debt buyback) are mutually exclusive.
The precise nature and conditions of future external support for
Greece-- and their implications for bondholders -- are unclear,
and may remain so, even after the greater clarity on permanent
crisis resolution mechanisms is achieved.  Moody's believes that,
over time, the risks surrounding the implementation of the
economic program may grow and a solution that requires private-
sector creditors to bear losses may become more appealing.  This
view is reflected in the B1 rating announced.

Over five-year investment horizons, around 80% of B1-rated
sovereigns, non-financial corporates and financial institutions
have consistently met their debt service requirements on a timely
basis, while around 20% have defaulted.

              What Could Change the Rating Up/Down

A further downgrade could follow if the Greek government's
commitment to the austerity program were to appear to weaken, or
if the Troika's willingness to provide support were to start

Conversely, an upgrade could follow if the probability of a
default event were judged to be diminishing in likelihood and the
pace of fiscal consolidation were to proceed more rapidly than
Moody's currently expects -- for example, through the receipt of
large amounts of privatization revenues, or if positive surprises
to tax receipts were to reveal strong progress in the government's
fight against tax evasion.  If the Troika were to extend long-term
fiscal support to Greece, without imposing losses on bondholders,
this could also lead to an upgrade.

Moody's previous rating action on Greece was implemented on 16
December 2010, when the rating agency placed Greece's government
bond ratings on review for possible downgrade.  Prior to that,
Moody's last rating action on Greece was taken on June 14, 2010,
when the rating agency downgraded Greece's government bond ratings
Ba1 from A3 and assigned a stable outlook.


KAUPTHING BANK: Owes Money to 70 Indian Companies
Dinesh Unnikrishnan and Appu Esthose Suresh at report
that about 70 Indian companies and individuals are set to lose
money kept with or owed to them by Kaupthing Bank HF.

Mint says the list includes institutions such as state-run Bank of
Baroda (BoB) and India's largest software firm Tata Consultancy
Services Ltd (TCS), and many individuals, mostly diamond merchants
and non-resident Indian (NRI) businessmen.

Federal agencies are examining the transactions involved for
possible misappropriations, Mint discloses.  According to Mint, a
senior official with one of the federal investigative agencies
said the transactions are currently being examined to check
whether they have anything to do with the flow of black money.

The value of these deposits, receivables or investments in local
bonds, is estimated to be around US$30 million, Mint notes.

Among the Indian creditors, the value of BoB's exposure to
Kaupthing Bank is now around US$13.2 million (US$6.6 million each
in two accounts), Mint says, citing documents reviewed by Mint,
and that of TCS is US$18,641.22.  Mint relates that R.K. Bakshi,
executive director of BoB, said the bank will have to assess what
portion of its investments can be recovered following the
settlement process.

Kaupthing Bank, which is currently in the midst of a winding up
process, has called a creditors' meeting on April 13 at Reykjavik,
where the claims of the creditors will be considered for any
possible settlement, Mint discloses.

As of Dec. 31, 2010, Kaupthing Bank had total assets of ISK1.19
trillion, out of which loans to and claims against credit
institutions stood at ISK213.29 billion while loans to customers
were at ISK279.25 billion.

                       About Kaupthing Bank

Headquartered in Reykjavik, Kaupthing Bank -- is Iceland's largest bank and among
the Nordic region's 10 largest banking groups.  With operations in
more than a dozen countries, the bank offers a range of services
including retail banking, corporate finance, asset management,
brokerage, private banking, treasury, and private wealth
management.  Kaupthing was created by the 2003 merger of
Bunadarbanki and Kaupthing Bank.  In October 2008, the Icelandic
government assumed control of Kaupthing Bank after taking similar
measures with rivals Landsbanki and Glitnir.

As reported by the Troubled Company Reporter-Europe, on Nov. 30,
2008, Olafur Gardasson, assistant for Kaupthing Bank hf., filed a
petition under Chapter 15 of title 11 of the United States Code in
the United States Bankruptcy Court for the Southern District of
New York commencing the Debtor's Chapter 15 case ancillary to the
Icelandic Proceeding and seeking recognition for the Icelandic
Proceeding as a "foreign main proceeding" under the Bankruptcy
Code and relief in aid of the Icelandic Proceeding.


CAIRN HIGH: S&P Affirms 'CC' Ratings on Four Classes of Notes
Standard & Poor's Ratings Services affirmed its credit ratings on
Cairn High Grade ABS CDO I PLC's class A1, A2, B, C, and E notes.

S&P's rating actions follow publication of the transaction's
February 2011 payment date report.  In its opinion, it is clear
from the report that all noteholders will ultimately experience
principal losses.

According to the payment date report, in February 2011 the issuer
sold portfolio assets with a par value of $703.47 million and
received total sale proceeds of US$372.97 million.  After
distributing the sales proceeds and amounts in the transaction's
principal and interest accounts, the issuer held remaining assets
with a total par value of US$13.20 million.  Given the issuance
still outstanding, it is now clear, in its opinion, that all
noteholders will ultimately experience principal losses.

As no class of notes is yet in payment default, S&P does not
consider it appropriate to lower its ratings to the 'D' level.
S&P has therefore affirmed all ratings at the 'CC' level,
indicating that the notes are currently highly vulnerable to

Cairn High Grade ABS CDO I is a cash flow CDO of dollar-
denominated structured finance securities.  The transaction closed
in August 2005 and is managed by Cairn Financial Products Ltd.

                          Ratings List

                  Cairn High Grade ABS CDO I PLC
                  US$1 Billion Floating-Rate Notes

                       Ratings Affirmed[1]

                      Class         Rating
                      -----         ------
                      A1            CC (sf)
                      A2            CC (sf)
                      B             CC (sf)
                      C             CC (sf)
                      E             CCp (sf)

[1] Note that S&P does not rate the class D notes in this

COALPORT BUILDING: High Court Lifts Winding-Up Order
Mary Carolan at The Irish Times reports that the High Court has
lifted an order to wind up Coalport Building Company Ltd. after
being told the company had paid a debt of EUR140,000 to the
Revenue Commissioners.

The Irish Times relates that the order was vacated by Ms. Justice
Mary Laffoy on Monday after the Revenue said it was withdrawing
its petition for the winding up of the company.  According to The
Irish Times, the judge vacated the wind-up order and adjourned the
matter for a week to allow MCR Personnel Ltd. and Theresa
McGuinness, who claim they are owed money by Coalport, time to
consider if they wish to take over the Revenue's petition.

Coalport Building Company Ltd. is a Dublin-based company owned by
developer Thomas McFeely.

HOUSE OF EUROPE: S&P Cuts Ratings on Various Notes to 'CCC- (sf)'
Standard & Poor's Ratings Services lowered its credit ratings on
the class A2, A3a, A3b, and B notes issued by House of Europe
Funding V PLC, a cash flow collateralized debt obligation of
asset-backed securities transaction that closed in October 2006.
At the same time, S&P affirmed its ratings on the class A1, C, D,
E1, and E2 notes.

S&P's rating actions follow its assessment of the deterioration in
the credit quality of the underlying portfolio, coupled with an
increase in losses since its last review on Feb. 2, 2010.  The
ratings are unaffected by its revised counterparty criteria.

While the transaction has not witnessed an increase in assets
rated 'CCC+' and lower since its last review, the ratings
distribution of assets in the underlying portfolio has generally
experienced downward rating pressures.  In addition, losses
resulting from the default of one obligor have led to a fall in
credit enhancement levels for all classes of notes apart from the
class A1 notes.

Given the proportion of corporate CDOs in the portfolio
(approximately 25% of the performing balance), S&P considered it
appropriate to analyze the transaction using two versions of CDO
Evaluator, 4.1 and 5.1.  This approach is described in the section
"Treatment of other asset types in corporate CDOs" in its
corporate CDO criteria "Update To Global Methodologies And
Assumptions for Corporate Cash Flow And Synthetic CDOs," published
Sept. 17, 2009.

According to the latest available trustee report of February 2011,
the transaction continues to fail its overcollateralization tests
and the issuer has continued to pay down the class A1 notes in an
attempt to bring the tests back into compliance.  While it applied
both interest and principal proceeds to reduce the notional of the
class A1 notes on the February payment date, reported
overcollateralization ratios have nevertheless deteriorated since
its last review.

In its view, amortization has resulted in an increase in credit
enhancement available to the class A1 notes.  The increase in
credit enhancement is sufficient, in its opinion, to
counterbalance the rise in scenario default rates determined in
its analysis, and S&P has therefore affirmed its 'AA+ (sf)' rating
on the class A1 notes.

In contrast, the deterioration in credit quality of the underlying
portfolio has increased the SDRs to an extent where, in its view,
current credit enhancement levels on classes A2, A3a, A3b, and B
are no longer sufficient to maintain their previous ratings.

Therefore, S&P has lowered its rating on the class A2 notes to 'A-
(sf)' from 'A+ (sf)', which, in its view, is commensurate with the
lower current credit enhancement level.

Similarly, the fall in credit enhancement for the class A3a, A3b,
and B notes, coupled with an increase in SDRs, has led us to lower
its ratings on these classes to 'CCC- (sf)'.  In its view, the
ratings reflect the current likelihood of repayment to their
respective noteholders.

S&P has affirmed its 'CC (sf)' ratings on the class C, D, E1, and
E2 notes, as S&P still believe that ultimate repayment of these
notes is unlikely.

                          Ratings List

                  House of Europe Funding V PLC
    EUR996 Million Fixed-and-Floating Rate Notes and EUR4 Million
                          Annuity Notes

                         Ratings Lowered

           Class          To                 From
           -----          --                 ----
           A2             A- (sf)            A+ (sf)
           A3a            CCC- (sf)          B+ (sf)
           A3b            CCC- (sf)          B+ (sf)
           B              CCC- (sf)          CCC+ (sf)

                        Ratings Affirmed

                     Class          Rating
                     -----          ------
                     A1[1]          AA+ (sf)
                     C              CC (sf)
                     D              CC (sf)
                     E1             CC (sf)
                     E2             CC (sf)

[1] According to the terms and conditions of the notes, the class
    A1 delayed draw notes were consolidated with the class A1
    notes and the issuer treats them as identical to the class A1
    notes in all aspects.

KILDARE SECURITIES: S&P Cuts Rating on Class D Notes to 'BB (sf)'
Standard & Poor's Ratings Services lowered its credit ratings on
Kildare Securities Ltd.'s class A3, B, C, and D notes.  The class
A2 notes remain on CreditWatch negative for sovereign and
counterparty reasons.  The class A3 and B notes remain on
CreditWatch negative for counterparty reasons.  S&P removed the
class C and D notes from CreditWatch negative.

On Nov. 11, 2010, S&P placed all outstanding classes of notes in
this transaction on CreditWatch negative due to:

* Irish house price declines and resulting high loan-to-value (LTV

* Concerns about increases to arrears; and

* The downgrade of the short-term rating on Bank of Ireland, which
  is the guaranteed investment contract and transaction account

Then, following the negative rating action on the Republic of
Ireland, S&P updated the CreditWatch status of the class A2, A3,
and B notes on Dec. 7, due to heightened sovereign risk.

Lastly, on Jan. 18, S&P again updated the CreditWatch status of
the ratings on the class A2, A3, B, and C notes when S&P's updated
counterparty criteria became effective.

S&P's downgrades are a result of its credit and cash flow

S&P has kept on CreditWatch negative the rating on the class A2
notes for sovereign and counterparty reasons.

S&P has lowered the ratings on the class A3 and B notes.  They
remain on CreditWatch for counterparty reasons only.  Only classes
rated 'AAA' or 'AA+' were affected by the Dec. 7 sovereign
CreditWatch action.  Because of the downgrade of the class A3 and
B notes to below 'AA+', they are no longer on CreditWatch negative
for sovereign reasons.

S&P has lowered and removed from CreditWatch negative the rating
on the class C notes for performance reasons.  S&P has removed it
from CreditWatch negative for counterparty reasons because the
rating is now at a level which can be supported by the current
rating on the supporting counterparties.

The class D notes were on CreditWatch negative for performance
reasons only.  S&P has now lowered the rating and removed it from
CreditWatch negative.

According to the Permanent TSB/ESRI House Price Index, house
prices in Ireland have fallen 38% since the price peak at the end
of 2006.  This transaction closed in March 2007 and house price
declines have increased the indexed weighted-average LTV ratio of
the loans in the pool to 88.3% from 62.3%, according to the
November investor report.  This report also shows that 32.9% of
the pool has an indexed LTV ratio greater than 90%.  This compares
with just 3.1% of the pool at close.  The increase in LTV ratios
has increased S&P's expectation of the loss on this portfolio.
Increased WAFF and WALS figures (i.e., weighted-average
foreclosure frequency and weighted-average loss severity) mean
that the class A3, B, C, and D notes no longer pass S&P's cash
flow stresses at the current rating level.

S&P has also noted that ICS Building Society, in its role as
investment manager, has stated that it is discontinuing a previous
practice of buying back loans that become interest-only.  S&P
believes this will have a negative effect on the deal, as, in its
opinion, loans that convert to interest-only will carry a greater
risk than other loans in the portfolio.

Arrears in this transaction remain lower than those S&P has
observed in other Irish transactions, and there have been no
reserve fund draws.  However, in S&P's opinion the declining house
prices and the presence of interest-only loans, together with high
unemployment and continuing austerity measures in Ireland, are
likely to cause higher delinquencies and to increase pressure on
the cash flows of this deal.

This transaction was originated by ICS Building Society.  The
collateral consists of a portfolio of first-ranking prime
residential mortgages secured over properties in Ireland.

                           Ratings List

                     Kildare Securities Ltd.
        EUR1.276 Billion and US$2.176 Billion Mortgage-Backed
                      Floating-Rate Notes

      Ratings Lowered and Remaining on CreditWatch Negative

    Class       To                         From
    -----       --                         ----
    A3          AA- (sf)/Watch Neg         AAA (sf)/Watch Neg
    B           A- (sf)/Watch Neg          AA+ (sf)/Watch Neg

      Ratings Lowered and Removed From CreditWatch Negative

    Class       To                         From
    -----       --                         ----
    C           BB+ (sf)                   A (sf)/Watch Neg
    D           BB (sf)                    BBB+ (sf)/Watch Neg

             Rating Remaining on CreditWatch Negative

                  Class       Rating
                  -----       ------
                  A2          AAA (sf)/Watch Neg

MURPHY'S WORLD: Goes Into Liquidation; 30 Jobs Lost
RTE News Ireland reports that Murphy's World of Wonder, a family-
run chain of toy stores, went into liquidation on March 7 with the
loss of 30 jobs.

Murphy's World of Wonder, with shops in Mallow, Blackpool,
Midleton and Fermoy, confirmed Monday that the family have put the
company into voluntary liquidation.

Gerald Murphy, the company's managing director, cited the state of
the economy, lack of access to credit from banks and suppliers,
and the high costs of running a business, for its decision.

Murphy's World of Wonder started as a family-run grocery business
in Mallow in 1929, but became a full toy store in 1999, expanding
two years later with shops opening in Blackpool, Fermoy and

SUNDAY TRIBUNE: Receiver Sues IMOS Over Fake Newspaper
Vivion Kilfeather at Irish Examiner reports that The Irish Mail on
Sunday newspaper is being sued at the Commercial Court over its
alleged "brazen and outrageous" publication last month of a fake
copy of the Sunday Tribune newspaper just days after a receiver
was appointed to it.

According to Irish Examiner, John Gordon, counsel for Jim Luby,
the receiver appointed to Tribune Newspapers plc on Feb. 1, said
his side would be seeking damages, including "exemplary damages"
over this "direct attack" on the goodwill of the Sunday Tribune.

Neil Steen, for Associated Newspapers (Ireland) Ltd, trading as
the IMOS, said the IMOS would be seeking to bring a preliminary
motion for security of the legal costs of these proceedings
against Tribune newspapers.

Irish Examiner notes the counsel said that this was probably the
"most outrageous" example of a "passing off" matter to have come
before the courts in recent years and the IMOS had outlined no
defense to it.  Mr. Gordon, as cited by Irish Examiner, said this
incident was self-evidently extremely damaging to the Sunday
Tribune and he would like to see what defense was being offered.
According to Irish Examiner, in an affidavit, Mr. Luby said the
most valuable asset owned by Tribune Newspapers plc is the
goodwill in the title "Sunday Tribune".

After being appointed receiver on Feb. 1, he offered the newspaper
for sale and also decided it would not be published on Feb. 6 as
he was unable to obtain libel insurance cover, Irish Examiner
recounts.  However, he learned on Feb.  6 editions of the IMOS
were published and offered for sale that day with a wraparound
with the same title, coloring and layout as the Sunday Tribune so
any member of the public would assume they were buying the Tribune
when it was actually the IMOS, Irish Examiner relates.  According
to Irish Examiner, Mr. Luby said that "alternative" newspaper was
an attempt to misappropriate the goodwill and value of the
Tribune's business and an extremely cynical and outrageous
attempt" to target its readers.

Mr. Justice Peter Kelly said he would transfer the proceedings to
the Commercial Court as it was admissible within the rules
relating to passing off cases, Irish Examiner discloses.
According to Irish Examiner, he noted that there is no longer a
monetary threshold for a case of "passing off."

The Sunday Tribune is an Irish Sunday broadsheet newspaper
published by Tribune Newspapers plc.  Independent News & Media has
been an investor in the Sunday Tribune since 1992.


HYVA GLOBAL: Moody's Assigns 'B1' Corporate Family Rating
Moody's Investors Service has assigned a B1 Corporate Family
Rating and B1 Probability of Default Rating to Hyva Global B.V.,
which was acquired in December 2010 by private equity investors
and management with closing expected for March 2011.  The proposed
US$375 million bonds to be issued by Hyva Global B.V. will be
guaranteed on a senior secured basis by certain regional holding
companies of the group but not by Hyva China and Hyva India, which
together accounted in 2010 for more than half of group sales and
about three quarters of normalized EBITDA.  Moody's has assigned a
(P)B1 rating with a loss-given-default rating LGD4, 51% to these
proposed bonds.  The outlook for the ratings is stable reflecting
Hyva's capacity for fast deleveraging as a result of substantial
growth and profit opportunities in the company's developing market
businesses.  This is the first time that Moody's has assigned
ratings to Hyva.

Moody's issues provisional ratings for debt instruments in advance
of the final sale of securities or conclusion of credit
agreements.  Upon a conclusive review of the final documentation,
Moody's will endeavour to assign a definitive rating to the
different capital instruments.  A definitive rating may differ
from a provisional rating.

                        Ratings Rationale

"The B1 CFR for Hyva reflect its (i) modest scale for a global
company with revenues close to EUR500 million expected for 2010,
(ii) its risk concentrations with a narrow product focus in
hydraulic systems for trucks and high exposure to the developing
markets China and India, and (iii) high leverage initially after
the transaction " said Wolfgang Draack, a Senior Vice President in
Moody's Corporate Finance Group.  The rating is supported by (i)
the company's international presence with good growth
opportunities in emerging markets, (ii) leadership in core markets
based on brand, product efficiency and reliability and an
established global service network; and (iii) a flexible cost base
with low operating leverage.

Moody's views the business risk that Hyva is exposed to as
moderate, because of clear leadership positions in the national
niche markets with strong growth trend, of established
distributions network to truck bodybuilders rather than the
automotive OEMs, and a flexible business model with lean
operations and localization of supplies.  As a result, Hyva has a
good cash generation capacity which could be used for fast debt
reduction, but the accelerating growth of the business may also
require more than expected investments into capacity or side
businesses (e.g. tippers), diverting cash from (unscheduled) debt
amortization.  The high leverage and the respective debt service
requirements are the primary factors constraining the B1 rating.

The stable outlook for Hyva's ratings incorporates the expectation
of relatively fast de-leveraging towards about 4.0x debt/EBITDA by
FYE 2011 from about 4.8x pro-forma.  This would require continued
strong growth in developing markets and stability at least in
Europe with resilient operating margins.

A near-term rating upgrade is currently not envisaged.  It would
require growth in EBITDA above expectations leading to a
debt/EBITDA ratio below 3.5x and generation of free cash flows
rising above 10% of debt on a sustained basis.  Stalled growth,
margin erosion or maintenance of leverage above 4.5x through 2011
would place pressure on the ratings.

Upon the closing of the transaction, expected to be in March 2011,
senior manager Alex Tan through his company Ocean Fortune Trading
will own a 20% stake in Hyva China, the group's largest operation
and primary contributor to earnings.  Tan, however, agreed to sell
his 20% stake in Hyva China to Hyva Global, subject to regulatory
approvals.  He will invest, together with other senior managers in
the group's top holding company.  This company will be owned by
Unitas and NWS (35% each) and management (30%).

In line with Moody's LGD approach, the rating agency groups Hyva's
debt into three classes of creditor protection: (i) the US$30
million (about EUR 23 million) secured revolving credit (a
standard 75% expected to be outstanding at a potential financial
restructuring) with super-priority ranking in liquidation; (ii)
approximately US$375 million (about EUR272 million senior secured
bonds at LGD4 (51%) and about EUR89 million trade payables, and
(iii) about EUR7 million pension obligations and next year's
installment of capital leases as an estimate of the lease
rejection claim in liquidation ranked at the bottom of the

Issuer: Hyva Global B.V.


  -- Probability of Default Rating, Assigned B1

  -- Corporate Family Rating, Assigned B1

  -- Senior Secured Regular Bond/Debenture, Assigned (P)B1 LGD4,

  -- Senior Secured Regular Bond/Debenture, Assigned (P)B1 LGD4,

Hyva Global, headquartered in the Netherlands, is a leading global
provider of hydraulic (tipping) solutions for the commercial
vehicle industry.  It is also an important player in the
manufacturing and supply of compactors and waste collecting units
for the environmental services industry.  Hyva generated EUR486
million revenues in its 2010 fiscal year.

HYVA GLOBAL: S&P Assigns 'B+' Long-Term Corporate Credit Rating
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Hyva Global B.V.  The outlook is
stable.  At the same time, Standard & Poor's assigned its 'B+'
issue rating to the company's proposed issue of up to US$375
million in senior secured notes due 2016.  The rating on the notes
is subject to Standard & Poor's review of the final documentation
for the notes issuance.

"The rating on Hyva reflects the company's narrow product focus,
potential margin compression, and its aggressive financial risk
profile," said Standard & Poor's credit analyst Joe Poon.  "Hyva's
good brand recognition, and established sales and distribution
networks partly offset these factors.  Its low-cost production
base and good growth potential in emerging markets offer
additional support."

Hyva's business risk profile is weak.  S&P believes its margins
could decline over the next few years, at least, due to intense
competition from domestic and global players in emerging markets.
Product concentration is also likely to remain high; cylinder and
wet kits contributed 63% of its total sales in 2010.
Nevertheless, Hyva's high-quality after-sales services allow it to
charge premium prices.

In its view, Hyva can maintain its leading position in terms of
sales in its niche market of hydraulic systems.  Over the past few
years, the company has expanded into high-growth emerging markets.
It has an established brand name and good penetration in China,
India, and Brazil, where it benefited from a first-mover
advantage.  High government expenditure on infrastructure projects
(such as roads and railways) in emerging markets and a low-cost
production base should help drive Hyva's growth for the next five
years, in its opinion.

The company's high leverage is a rating constraint.  Its co-
sponsors, NWS Holdings Ltd. and private-equity company Unitas
Capital Pte.  Ltd., will inject equity in the form of common
equity and subordinated preferred shares into a holding company a
few levels above the parent guarantor.  In accordance with its
criteria on leveraged buyouts, S&P has treated the preferred
shares as debt when calculating credit ratios.  S&P ascribes
certain equity characteristics to the shares when interpreting the
company's metrics and assessing its financial risk profile.  S&P
does not expect the sponsors to pursue an aggressive financial
policy, given its expectation that NWS will view Hyva as a
strategic investment.

Hyva's financial risk profile is likely to remain aggressive over
the next 12 months, at least, given the likelihood of weak
financial metrics (including the preferred shares).  The company's
financial performances have been historically volatile due to the
cyclicality of end markets.  S&P expects Hyva to increase sales in
emerging markets and gradually recover those in Europe.  As a
result, excluding the preferred shares, the adjusted ratio of
total debt to EBITDA is likely to be less than 4.5x and the ratio
of funds from operations to total debt more than 10% over the next
12 months, according to its base-case scenario.

S&P believes Hyva's liquidity will be adequate following the LBO
and proposed bond issuance, with support from its positive free
operating cash flow generation.  As at Dec. 31, 2010, the company
had cash and cash equivalents of about EUR125.5 million and
EUR167.0 million short-term debt due.  Upon the completion of the
LBO transaction and the proposed bond, S&P expects Hyva to have
about US$50 million in cash and no debt due until 2016.  The
company also has US$30 million in committed undrawn banking

Hyva aims to raise US$375 million from the proposed bond issue.
It intends to hold the proceeds in an escrow account to complete
the acquisition of Hyva Holding B.V. from 3i Group PLC
(BBB+/Stable/A-2) for about EUR525 million.  The proceeds will be
released when the acquisition from 3i is completed.

Hyva has sufficient liquidity for operating and financing needs,
in its opinion, given its light capital expenditure and modest
working capital needs.  The company's financial performances
deteriorated materially during the global financial crisis; but it
has still been able to generate positive free cash flow since

Accumulating cash for debt servicing and maintaining sufficient
operating cash are likely to be the company's key financial
objectives.  S&P has not factored any major acquisitions into the

"The stable outlook reflects its expectation that Hyva should
benefit from the growth potential in emerging markets.  In
addition, S&P believes the company will be able to maintain
sufficient liquidity and cash flow generation to cope with market
competition and for debt servicing.  S&P assume Hyva will continue
to preserve cash with no dividend payouts before its debt leverage
improves," said Mr. Poon.

S&P could lower the rating if: (1) the adjusted ratio of FFO to
total debt consistently stays below 10% or the adjusted ratio of
total debt to EBITDA is more than 5x (excluding preferred shares);
(2) Hyva substantially increases its capital expenditure beyond
its current plan or engages in major debt-funded acquisitions; or
(3) its sponsors aggressively extract value from the group.

Rating upside is limited for the next 12 months.  Nevertheless,
S&P could raise the rating if: (1) Hyva can improve its financial
strength on a sustained basis, with say an adjusted ratio of total
debt to EBITDA below 3x and FFO to total debt of more than 20%
(excluding preferred shares).  This could occur if the company
uses its cash resources to reduce debt, supported by improvement


EVROFINANCE MOSNARBANK: Fitch Gives Pos. Outlook; Keeps B+ Rating
Fitch Ratings has revised Evrofinance Mosnarbank's Outlook to
Positive from Stable and affirmed its Long-term Issuer Default
Rating at 'B+'.

The Outlook revision reflects EMB's strengthened balance sheet,
which is a result of the recent change in ownership, and the
potential for the bank's franchise and performance to be enhanced
due to its improved access to business with some of Russia's
leading corporates.

Following the ownership changes in February 2011, EMB is now
jointly owned by entities closely linked to the Russian and
Venezuelan governments.  Russia's JSC VTB Bank ('BBB'/Stable) and
Gazprombank (together with their subsidiaries) each hold 25% plus
one share, and the National Development Fund of Venezuela has 50%
minus two shares.  The Presidents of both countries have supported
the change in EMB's ownership structure, and there are plans for
the bank to support joint Russian-Venezuelan projects.

The change in ownership did not entail any capital injections.
However, in Fitch's view, asset quality improved following the
transaction, due to former shareholders of the bank purchasing a
sizable portfolio of mainly construction loans from EMB.  Partly
as a result of this, at 1 March 2011 the bank had a very strong
balance sheet, with equity exceeding gross loans, the regulatory
capital ratio standing at 41.6% and highly liquid assets covering
almost all deposits.  However, customer business on both sides of
the balance sheet remains highly concentrated.

Fitch believes there is significant uncertainty over EMB's future
strategy and business profile.  The bank's new supervisory board
is still to be elected and a strategy review is only just
beginning.  It seems unlikely that EMB will become a major lender
to joint Russian-Venezuelan oil sector projects due to its
relatively small size, but the bank may become more involved in
servicing cash flows relating to these projects.  More generally,
management aims to broaden its business with large Russian
corporates and expects rapid growth of its loan portfolio in the
near term, supported by the bank's currently low leverage.

If EMB succeeds in strengthening and diversifying its franchise
and enhancing its performance while maintaining a robust balance
sheet, the bank's Long-term IDR may be upgraded.  A demonstration
of more tangible financial support for the bank from the Russian
authorities and a strengthening of its government ties and policy
role could also contribute to an upgrade.  However, if the bank
increases its leverage without deriving any significant franchise
or support benefits from its new role, the rating may be affirmed
at its current level.

Based on unaudited IFRS financials, EMB had total assets of US$1.2
billion and equity of US$432 million at the end of 2010.  At the
same date, EMB was the 92nd-largest Russian bank by assets and
40th-largest by equity.

The rating actions are as follows:

  -- Long-term foreign currency IDR: affirmed at 'B+'; Outlook
     revised to Positive from Stable

  -- Short-term foreign currency IDR: affirmed at 'B'

  -- Local currency long-term IDR: affirmed at 'B+'; Outlook
     revised to Positive from Stable

  -- National Long-term rating: affirmed at 'A-(rus)'; Outlook
     revised to Positive from Stable

  -- Support Rating: affirmed at '5',

  -- Individual Rating: affirmed at 'D'

  -- Support Rating Floor: affirmed at 'No Floor'

* SWEDEN: Corporate Failures Up 5% to 500 in February 2011
M2 Communications, citing credit information agency
Upplysningscentralen (UC) AB, reports that the number of corporate
failures in Sweden went up 5% year-on-year to 500 in February

According to M2, in the first two months of 2011, the number of
bankruptcies rose by 3% on the year to 988.  Construction and
retail trade were the only sectors that registered an increase
(18% and 23%, respectively), while transport saw the biggest
decline (-32%), M2 discloses.


VTB BANK: Fitch Assigns 'B+' Rating to Senior Unsecured  Bonds
Fitch Ratings has assigned PJSC VTB Bank (Ukraine)'s four series
of UAH-denominated senior unsecured bonds (totaling UAH1 billion)
expected Long-term local currency ratings of 'B+(exp)', Recovery
Ratings of 'RR4' and National Long-term ratings of

The bonds' final ratings are contingent on the receipt of final
documents materially conforming to information already received.

The expected terms of the issues are:

Series C:

  -- Size: UAH300 million
  -- Placement: from March 2011
  -- Maturity: January 2015
  -- Put option: February 2012, February 2013, February 2014

Series D:

  -- Size: UAH200 million
  -- Placement: from June 2011
  -- Maturity: January 2015
  -- Put option: June 2012, June 2013

Series E:

  -- Size: UAH300 million
  -- Placement: from June 2011
  -- Maturity: January 2015
  -- Put option: June 2012, June 2013

Series F:

  -- Size: UAH200 million
  -- Placement: from January 2012
  -- Maturity: January 2015
  -- Put option: January 2013, January 2014

The bank's obligations under the issues will rank at least equal
to the claims of other senior unsecured creditors of VTBU, except
those preferred by relevant legislation.  Under Ukrainian law, the
claims of retail depositors rank above those of other senior
unsecured creditors.  At end-2010, retail deposits accounted for
17% of VTBU's total liabilities, according to the bank's local
GAAP accounts.

VTBU's ratings are: Long-term foreign currency Issuer Default
Rating 'B', Long-term local currency IDR 'B+', Short-term foreign
currency IDR 'B', Individual 'E', Support '4' and National
'AAA'(ukr)'.  The Long-term IDRs and the National Rating have
Stable Outlooks.

VTBU is a medium-sized Ukrainian bank, ranked eighth by assets in
the country at end-2010.  The bank's IDRs and National Rating
reflect the support it may receive if needed from its majority
shareholder, JSC VTB Bank (VTB;'BBB'/Stable), which holds more
than 99% of VTBU.

U N I T E D   K I N G D O M

ACE: Goes Into Administration, Ceases Trading & Axes 22 Jobs
Aaron Morby at ConstructionInquirer reports that Ace has ceased
trading with the loss of 22 jobs.

Ace carried out plumbing, joinery and electrical work and was
working on contracts with Highland Council and a bathroom
showroom, according to ConstructionInquirer.  The report relates
that the firm is understood to have run into financial problems
after the collapse of an important contract.

Ace is a Scottish family-owned plumbing and heating firm.
Owners Chris and Gail Surtees built the business up from premises
above a garage more than 30 years ago.

CONNAUGHT PLC: Landscape Unit Sale Saves 2,700 Jobs
Alan Purkiss at Bloomberg News, citing London-based Times, the
sale of the environmental unit of Connaught Plc was completed on
March 8, 2011, saving 2,700 jobs in the process.

A group led by Royal Bank of Scotland Group Plc and Alchemy
Partners LLP, a private-equity company, bought the business, which
provides landscaping and forestry services, including trimming
trees along railway lines, the newspaper said, according to

The unit, which has resumed its old name, Fountains, was listed on
London's Alternative Investment Market until Connaught acquired it
in 2009; it's been run as a going concern by KPMG, Connaught's
administrator, the Times said, Bloomberg adds.

                     About Connaught plc

Connaught plc -- is a United
Kingdom-based company engaged in the provision of integrated asset
services to the public and private sectors.  The Company operates
in two business segments: social housing and compliance.  Social
Housing segment provide social housing landlords throughout the
United Kingdom with a range of planned and response maintenance
services, as well as compliance and estate management.  The
Compliance segment provides safety, health and risk management
solutions.  It has information, advisory, training and servicing
capabilities to provide integrated compliance solution throughout
the United Kingdom.  On July 22, 2009, the Company completed the
acquisition of UK Fire (International) Limited and Igrox Limited.
On September 15, 2008, the Company completed the acquisition of
Lowe Group Holdings Ltd.  On November 26, 2008, the Company
completed the acquisition of certain assets of Predator Pest
Control Plc.

                            *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 9,
2010, Bloomberg News said Connaught Plc appointed partners from
KPMG as administrators after the business as a whole failed to
secure "sufficient support" to trade as a going concern.
Bloomberg disclosed the company said in a statement on Sept. 8
that KPMG's Richard Heis, Richard Hill and Richard Fleming were
appointed administrators to Exeter, England-based Connaught Plc,
and Heis, Mark Firmin, Brian Green and David Costley-Wood were
appointed joint administrators to Connaught Partnerships Ltd.
Connaught Environmental Ltd. and their subsidiaries were not put
into administration, Bloomberg noted.

The TCR-Europe, citing Business Sale, reported on Feb. 4, 2011,
that private equity group Better Capital acquired 50% of the
compliance division of Connaught plc.  According to Business Sale,
GBP15 million has been put forward by Better Capital to finance
the acquisition and pay for restructuring efforts.

FENCHURCH INT'L: Goes Into Administration on High Labor Costs
FashionUnited reports that Fenchurch International went into
administration last week, blaming the rising cost of cotton and
higher labour costs.  RSM Tenon has been appointed as the

The administration puts 40 head office jobs at threat, according
to FashionUnited.

FashionUnited notes that Fenchurch International turned over GBP11
million in the 12 months to April 31, 2010 and achieved a gross
profit of 35%, according to an advert RSM Tenon placed offering
the company up for sale.  It predicts 30% sales growth in 2011 and
2012, the report adds.

Fenchurch International is a fashionable streetwear brand.

MODEC: Liberty Electric Seeks to Acquire Firm
The Journal reports that Liberty Electric Cars is looking to buy
Modec after it went into administration.

As reported in the Troubled Company Reporter-Europe on March 8,
2011, Birmingham Post said that Modec has fallen into
administration with the loss of 26 jobs.  The report related that
the firm has called in Zolfo Cooper after experiencing "severe
cashflow difficulties."

Modec had expected to be taken over by current stakeholder US-
based Navistar, but the deal fell through, according to The
Journal.  The report relates that Liberty is now interested in
rescuing the company's business.

The Journal notes that Libery gave few details about the proposed
rescue package but said that its Cramlington base was likely to
benefit from the deal if it went through.

Headquartered in Coventry, Modec is a West Midlands electric
vehicle firm.  It employs 53 staff.

TASC GROUP: Goes Into Administration
Insider Media Limited reports that TASC Group Construction has
gone into administration only two years after receiving a
GBP300,000 investment from the South Yorkshire Investment Fund

At the time of the investment, managing director Steve Copley
said: "This latest investment of GBP300,000 is a wonderful boost
for the business -- it's helping us to move into bigger premises
on the industrial estate and in turn, expand our target market.

SYIF have always been there to help us, they've been brilliant.
They are always positive with us and I think that during these
difficult economic times that's a huge asset -- SYIF give
longevity to companies across the region," according to Insider
Media Limited.

The report notes that the investment from SYIF was TASC's second
loan, after the company received GBP385,000 from SYIF in 2006 to
assist a management buyout.

Headquartered in Dore Industrial Estate, Sheffield, TASC
specialized in diamond drilling and fire protection solutions.


* Upcoming Meetings, Conferences and Seminars

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

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

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

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

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

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

May 5, 2011
     Nuts and Bolts - New York City
        Association of the Bar of the City of New York,
        New York, N.Y.
           Contact: 1-703-739-0800;

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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


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

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

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.

                 * * * End of Transmission * * *