TCREUR_Public/110415.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Friday, April 15, 2011, Vol. 12, No. 75

                            Headlines



C Z E C H   R E P U B L I C

SAZKA AS: Needs Urgent Funding for Regular Activities
SAZKA AS: Penta & E-Investment to Buy Sports Associations' Claims


E S T O N I A

LEVADIA METALL: Assets to be Put Up for Auction to Cover Debts


F I N L A N D

SUOMI-SOFFA: Files for Insolvency at Espoo District Court


F R A N C E

ALCATEL-LUCENT: S&P Affirms Corporate Credit Ratings at 'B'
REXEL SA: Fitch Affirms Senior Unsecured Rating at 'BB-'


G E O R G I A

* GEORGIA: Fitch Rates US$500-Mil. 2021 Eurobond at 'B+'


G E R M A N Y

ALBA GROUP: S&P Assigns Preliminary 'BB-' Corporate Credit Rating
ARCANDOR AG: Judge Wants Administrator to Support $254MM Claim
ECM REAL ESTATE: Net Loss Widens to EUR94.5 Million in 2010
VERSATEL AG: S&P Affirms 'B+' Long-Term Corporate Credit Rating


G R E E C E

DRYSHIPS INC: Ocean Rig Prices Senior Unsecured Bonds Offering


I R E L A N D

EIRCOM GROUP: Taps Alvarez & Marsal for Restructuring Advice
TCS FINANCE: Fitch Assigns Expected 'B' Rating to Upcoming Notes


I T A L Y

PB DOMICILIO: S&P Affirms 'BB (sf)' Rating on Class E Notes
SESTANTE FINANCE: S&P Affirms 'BB (sf)' Rating on Class B Notes


L A T V I A

PRIVATBANK AS: Moody's Puts 'B2' Rating on Review for Downgrade


L U X E M B O U R G

GEO TRAVEL: Moody's Assigns '(P)B2' Corporate Family Rating
ROSETTA I: Moody's Upgrades Rating on Class B Notes to 'B2 (sf)'


N E T H E R L A N D S

CARMEUSE HOLDING: S&P Lifts Long-Term Corp. Credit Rating to 'BB-'


R U S S I A

ALFA BOND: Fitch Assigns Expected 'BB' Rating to Upcoming Notes
EVRAZ GROUP: Moody's Assigns '(P)B2' Rating to Unsecured Notes
EVRAZ GROUP: S&P Assigns 'B+' Rating to US$500MM Unsecured Notes


S P A I N

CAIXA D'ESTALVIS: Fitch Cuts LT Issuer Default Rating to 'BB+'
METROVACESA SA: Majority of Lenders Agree to Delay Debt Repayments


U K R A I N E

* CITY OF IVANO-FRANKIVSK: S&P Affirms 'B-' Issuer Credit Rating


U N I T E D   K I N G D O M

ALITO COLOR: Sale to Previous Management Completed
BEMBRIDGE HARBOUR: Goes Into Administration
CONSOLIDATED MINERALS: Moody's Assigns B2 Corporate Family Rating
CONSOLIDATED MINERALS: S&P Assigns 'BB-' Corporate Credit Rating
CORSAIR: Fitch Affirms Rating on Series 326 Notes at 'CCsf'

INDUS ECLIPSE: Moody's Cuts Rating on Class B Notes to 'B3 (sf)'
SMITHS OF PETERHEAD: Sold to Touch Interactive; 20 Jobs Axed


X X X X X X X X

* BOOK REVIEW: Voluntary Assignments for the Benefit of Creditors


                            *********


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C Z E C H   R E P U B L I C
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SAZKA AS: Needs Urgent Funding for Regular Activities
-----------------------------------------------------
CTK reports that Josef Novotny, chairman of the interim creditor
committee, on Wednesday said Sazka AS urgently needs money for its
regular activities.

According to CTK, Mr. Novotny said the situation at Sazka is
significantly worse than has been presented by its management so
far.

Sazka spokesman Jan Tuna told CTK on Wednesday that the company
asked bondholder The Bank of New York Mellon - London Branch
whether it was considering financing the company's debts as it has
a pre-emptive right to do so in line with the Czech insolvency
law.

The interim creditor committee is made up of the largest creditors
of Sazka, namely KKCG, Moranda, Siderius, GTECH Corporation and
Ceska sporitelna, CTK discloses.  Moranda and Siderius had been
owned by entrepreneur Radovan Vitek whose creditor position was
taken over by PPF, CTK notes.

As reported by the Troubled Company Reporter-Europe, CTK, citing
information made public in the insolvency register, said that the
Prague City Court declared Sazka insolvent on March 29 and named
Josef Cupka as insolvency administrator.  CTK disclosed that the
court also decided on calling a meeting of creditors for May 26.
It has not determined the way how the insolvency will be solved,
CTK noted.  The court has three months from the decision on
insolvency for this, after the meeting of creditors at the
earliest, according to CTK.  Data from the insolvency register
showed that Sazka owed CZK1.37 billion to 26 creditors in overdue
debts as of March 10, CTK noted.

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


SAZKA AS: Penta & E-Investment to Buy Sports Associations' Claims
-----------------------------------------------------------------
CTK reports that investment groups Penta and E-Invest said on
Wednesday they are buying claims of sports associations on
Sazka AS, offering financial support for its shareholders.

CTK relates that Penta said in a press release that it and E-
Invest want to save Sazka from hostile takeover and bankruptcy.

Through the company Gladiolus, the groups have agreed with the
Czech Sports Association (CSTV) and other associations to buy
their claims on Sazka worth CZK140 million, CTK discloses.  The
first amount of money -- CZK63 million -- was remitted to sports
associations on Wednesday, CTK notes.  According to CTK, the
server Aktualne.cz said that through the purchase of claims on
Sazka from sports associations, Penta will get a chance to join
the creditor committee.

Penta and E-Invest pledged they were ready to provide CZK300
million to sports associations a year and guarantee keeping a 30%
stake at Sazka in the case of successful debt reorganization of
Sazka in cooperation with its shareholders, Penta and E-Invest,
CTK relates.

CSTV, CTK says, will hold a general meeting on the weekend to
decide on its stance on Sazka, among others.

As reported by the Troubled Company Reporter-Europe, CTK, citing
information made public in the insolvency register, said that the
Prague City Court declared Sazka insolvent on March 29 and named
Josef Cupka as insolvency administrator.  CTK disclosed that the
court also decided on calling a meeting of creditors for May 26.
It has not determined the way how the insolvency will be solved,
CTK noted.  The court has three months from the decision on
insolvency for this, after the meeting of creditors at the
earliest, according to CTK.  Data from the insolvency register
showed that Sazka owed CZK1.37 billion to 26 creditors in overdue
debts as of March 10, CTK noted.

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


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E S T O N I A
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LEVADIA METALL: Assets to be Put Up for Auction to Cover Debts
--------------------------------------------------------------
Toomas Hobemagi at Baltic Business News reports that Viktor Levada
was in court on Wednesday to give a debtor's oath as the assets of
his company Levadia Metall that will soon be auctioned to cover
its debts.

According to BBN, Mr. Levada said that filing bankruptcy for the
company after creditors refused to restructure it was personally
very difficult for him.

Levadia Metall has about 80 creditors who have two months to
register their claims, BBN discloses.  The company's largest
creditor is SEB that has lent the company EEK60 million, BBN
notes.  Other key creditors include Sampo pank, Nordea pank,
Unicredit, Swedbank, DnB Nord, BBN states.

BBN relates that the company said the economic crisis reduced its
revenue 65%.

Estonia-based Levadia Metall is owned by Viktor and Nadezda
Levada.  In 2008, the company employed 200 people and had revenues
of EEK1.6 billion and a profit of EEK76 million.


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F I N L A N D
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SUOMI-SOFFA: Files for Insolvency at Espoo District Court
---------------------------------------------------------
Finnish News Agency (STT), citing regional paper Kainuun Sanomat,
reports that Suomi-Soffa filed for insolvency at the Espoo
district court on Wednesday.

Marita Toivainen-Keskinen, the managing director, told the STT
that sales had plummeted as a result of negative media coverage.

Meanwhile, Suomi-Soffa's Kajaani sofa factory, registered as a
separate company, has filed for restructuring, STT notes.

Suomi-Soffa is a Finnish furniture showroom group.  Its 24
showrooms employ 153 people between them, with 2009 sales of about
EUR79 million.


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F R A N C E
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ALCATEL-LUCENT: S&P Affirms Corporate Credit Ratings at 'B'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
French telecom equipment supplier Alcatel-Lucent to stable from
negative.  "At the same time, we affirmed our 'B' long-term and
'B' short-term corporate credit ratings on the company," S&P
stated.

"The outlook revision to stable primarily reflects our
expectations that industry demand will be resilient over the near
term," said Standard & Poor's credit analyst Matthias Raab.  "This
should help Alcatel-Lucent to achieve moderate revenue growth and
margin improvements, despite continuously fierce competition, and
subsequently to significantly reduce its high cash burn to about
break-even levels in 2011."

"In our base-case assessment for 2011, we forecast Alcatel-
Lucent's revenues will grow by mid-single-digit figures, adjusted
for disposals and assuming constant currencies, compared with
2010.  This should be helped by currently increasing industry
demand, primarily for internet protocol (IP) technologies
and wireline and wireless network equipment, and by an improvement
in the group's adjusted operating margin of about 5%.  In
addition, we forecast slightly lower capital expenditures compared
with 2010 and mildly positive inflows from working capital.  The
latter, however, assumes that potentially negative effects on the
supply chain from the disaster in Japan are quickly reversed," S&P
elaborated.

"We have raised our assessment of Alcatel-Lucent's business risk
profile to 'weak' from 'vulnerable', primarily reflecting our
expectations of improving revenue and margin prospects.
Nevertheless, the group's still relatively high cost base and our
expectations of further significant restructuring costs continue
to weigh on the business risk profile," S&P noted.

"We continue to assess Alcatel-Lucent's financial risk profile as
aggressive, which balances the company's highly negative track
record of cash generation and very high leverage ratios on a
Standard & Poor's adjusted gross debt basis with its adequate
liquidity profile and a reported net financial cash position of
EUR377 million as of Dec. 31, 2010," S&P said.

"We expect that Alcatel-Lucent is likely to significantly reduce
its free cash flow losses in 2011 in our base-case assessment and
maintain an adequate liquidity profile," said Mr. Raab.  "In
particular, we expect the group to generate FOCF of at least
negative EUR100 million.  Our base case assumes mid-single-digit
comparable revenue growth, helped by currently increasing
industry demand, and an improvement in the group's adjusted
operating margin to about 5%."

Rating upside could build up if Alcatel-Lucent is able to generate
positive and sustainable FOCF and if, at the same time, the
group's Standard & Poor's-adjusted gross debt-to-EBITDA ratio
declines to about 5.0x.  "At the same time, we would expect the
group to maintain an adequate liquidity position," S&P related.


REXEL SA: Fitch Affirms Senior Unsecured Rating at 'BB-'
--------------------------------------------------------
Fitch Ratings has revised France-based electrical distributor
Rexel, SA's (Rexel) rating Outlook to Positive from Stable.  The
agency has affirmed Rexel's Long-term Issuer Default Rating (IDR)
and senior unsecured rating at 'BB-' and its Short-term IDR and
EUR500m Commercial Paper Programme at 'B'.

"Rexel's demonstrated control over its business model and strong
cash flow generation through the last cycle are increasingly
commensurate with a 'BB' rating," says Pablo Mazzini, Senior
Director in Fitch's European Corporates team in London.  "Although
Rexel remains vulnerable, particularly if there were adverse
changes in business or economic conditions at the revenue or
profit level, the strength of the free cash flow generation
throughout the cycle, strong liquidity, and the commitment to
maintaining a conservative financial policy are key supporting
factors to the group's financial flexibility," Mr. Mazzini added.

The Positive Outlook reflects the expectation of improved
financial metrics for 2011 and beyond, and a consistent financial
policy bringing FFO adjusted net leverage within 4.0x-4.5x (FY10:
5.1x; FY09: 6.6x) by FY12.  Although part of the improvement in
FY10 was due to the cyclical upturn after the last recession, and
the effect of copper inflation on cables, management has been
quick to adapt the cost structure and increase the productivity of
its branch network, which Fitch considers will be sustainable.

Fitch believes that Rexel will be able to exploit new revenue
streams in the fields of energy efficiency (which will remain key
drivers for its customer base given high energy costs), as well as
renewable energy and international projects.  Together with the
continued development of e-commerce, the strength of Rexel's
business model is underpinned by a growing presence in fast-
growing emerging markets.  Under the current economic environment,
Fitch expects a better mix and continuing cost-efficiency measures
will continue to drive EBITA margin above 6% by FY13 (FY10: 5%).

Rexel's management team is targeting a net leverage ratio of 3.0x
(public target within reach in 2011).  In December 2010, Rexel
stated that it is "aiming" for investment grade status, which
provides a sense of direction for the future financial policy.
Fitch has factored into the current rating and Outlook an annual
budget for bolt-on acquisitions of EUR200 million to EUR300
million, especially in growing emerging markets, and consolidation
of existing mature markets.

The ratings could be upgraded if Rexel maintains a conservative
financial policy resulting in lease-adjusted net leverage
consistently below 4.0x (or FFO-adjusted net leverage below 5.0x),
FFO interest coverage above 4.0x along with cash flow from
operations minus capex to EBITDAR (on a rolling two-year basis)
above 30% to ensure a degree of discipline in working capital
investments as revenue growth maintains its positive momentum.

Conversely, lease-adjusted net leverage permanently above 5.0x (or
FFO-adjusted net leverage above 6.0x) combined with a weakening
cash flow profile would lead to a stabilization of the rating
Outlook or a negative rating action.  Similarly, there could be
negative rating action if the agency is unable to identify any
mitigating factors in the event of a sharper deterioration in
economic conditions than expected, given the business cyclicality.


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G E O R G I A
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* GEORGIA: Fitch Rates US$500-Mil. 2021 Eurobond at 'B+'
--------------------------------------------------------
Fitch Ratings has assigned Georgia's US$500 million Eurobond, due
April 12, 2021, a rating of 'B+'.  The ratings are in line with
Georgia's 'B+' Long-term foreign currency Issuer Default Rating
(IDR).

Fitch affirmed Georgia's Long-term foreign currency IDR at 'B+'
and revised the Outlook to Positive from Stable on March 3, 2011.
The Positive Outlook reflects Georgia's strong economic recovery,
a reduction in both the budget and current account deficits, an
improvement in the financial sector's health and some easing of
political risk.

In parallel to the bond issue, the Georgian government announced
an "any and all" cash tender offer to buy back its US$500 million
2013 Eurobond, issued in April 2008, in which it redeemed US$417
million.  Fitch views the resulting lengthening of Georgia's
market debt maturity and smoothing of its amortization hump in
2013 as a favorable development.  Prior to the buyback, Georgia's
sovereign external amortization was scheduled to increase sharply
from US$126 million in 2011 and US$294 million in 2012 to US$947
million in 2013, before declining to US$320 million in 2014
(including the National Bank of Georgia's obligations to the IMF).
The amortization hump coincides with the next political cycle,
with parliamentary elections scheduled for 2012 and presidential
elections scheduled for 2013.


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G E R M A N Y
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ALBA GROUP: S&P Assigns Preliminary 'BB-' Corporate Credit Rating
-----------------------------------------------------------------
Standard & Poor's Rating Services said it assigned its preliminary
long-term corporate credit rating of 'BB-' to Germany-based
integrated waste management group, Alba Group PLC &
Co. KG (Alba Group).  The outlook is stable.

"At the same time, we assigned a 'B' preliminary issue rating to
Alba Group's EUR200 unsecured notes.  The recovery rating on the
notes is '6', indicating our expectation of negligible (0%-10%)
recovery prospects in the event of default," S&P stated.

The preliminary rating is based on preliminary information and is
subject to the approval and registration of a Domination and
Profit and Loss Transfer Agreement (DPLTA) and the confirmation of
the final capital structure.

The assignment of preliminary ratings on Alba Group reflects the
integration of its two waste management operation businesses, Alba
AG and Interseroh SE.  Alba Group, as operative holding company,
must enter into a DPLTA with Interseroh as a prerequisite for the
creation of the unified Alba Group. Alba Group currently owns 75%
of Interseroh.  "We assume that the DPLTA will be approved and
signed in the third quarter of 2011," S&P said.

"The ratings reflect our view of Alba Group's fair business risk
profile," said Standard & Poor's credit analyst Menique Smit.
"However, the ratings are constrained by our view of the
consolidated group's aggressive financial risk profile after the
planned notes issue.  The ratings also take into account Alba
Group's cyclical exposure in some segments -- such as steel and
metals recycling and raw materials trading -- and its relatively
high capital intensity for a service business."

These risks are partially mitigated by the overall favorable risk
characteristics of the consolidated group's core business of
collecting, sorting, and transporting waste (which contributes
about 80% of pro forma 2010 EBITDA) and its position as a major
regional waste management operator in Germany.

"In our view, Alba Group provides essential waste services and
holds leading positions in most of its markets.  The group's good
customer diversity should enable it to generate and sustain
adjusted funds from operations to debt of about 15% and debt to
EBITDA of 4.5x-5.0x.  We consider these ratios to be commensurate
with the current rating.  We also anticipate sustained
profitability in the near term, despite potential volatility in
revenues and profits from the steel and metals recycling and raw
materials trading businesses," S&P related.

Downside rating risk could result from ongoing economic recession,
if this were to reduce the overall profitability of Alba's waste
operation contracts, or if these contracts were lost or
unfavorably renegotiated.  "Downside risk could also occur if
weakened operating performance in the steel and metals recycling
and raw materials trading businesses were to result in the
deterioration of Alba Group's financial risk profile to lower
levels than we consider commensurate with the current rating," S&P
noted.

"Upside rating potential is currently limited, in our view, and
would relate to a track record of stable profitability, combined
with a sustained improvement in the group's financial risk profile
beyond our current forecasts," S&P added.


ARCANDOR AG: Judge Wants Administrator to Support $254MM Claim
--------------------------------------------------------------
Karin Matussek at Bloomberg News reports that a German court said
Arcandor AG's insolvency administrator hasn't shown that former
Chief Executive Officer Thomas Middelhoff and other executives
should pay EUR175 million (US$254 million) for management
failures.

Klaus Hubert Goerg, Arcandor's administrator, sued 11 former
executives and directors for failing to stop or unwind sale and
lease-back transactions of five department stores, Bloomberg
recounts.

According to Bloomberg, Presiding Judge Regina Pohlmann said at a
hearing on Wednesday in Essen, Germany, that after a preliminary
review, the court isn't convinced Mr. Goerg showed the actions
caused a loss.

Mr. Goerg "argues that the defendants should have stopped the
transactions when they saw the terms were negative for the
company," Bloomberg quotes Judge Pohlmann as saying.  "But he
doesn't explain what would have happened instead at the five
department stores and what financial effects that would have had."

Arcandor, the former parent of German department-store chain
Karstadt, filed for insolvency in June 2009, Bloomberg recounts.
Mr. Middelhoff's home and office were searched in October as part
of a criminal probe into the company's demise, Bloomberg
discloses.

The agreements under which Karstadt sold the five stores and
agreed to later lease them back, were closed in 2001 and 2002,
Bloomberg relates.  The sale prices were too low and the lease
prices too high, Mr. Goerg, as cited by Bloomberg, said.
Bloomberg notes that Mr. Georg said after Mr. Middelhoff became
CEO in 2005, he should have stopped the projects and claimed
damages from the ex-managers who signed the deals.

Lawyers for Middelhoff and the other defendants rejected the
claims on Wednesday, Bloomberg notes.  Allianz SE, which provided
insurance for the managers, also asked the court on Wednesday to
dismiss the claims, Bloomberg states.

The court, Bloomberg says, gave Mr. Goerg two months to provide
details on how he assesses the alleged damage and said it would
issue a ruling Aug. 31.

According to Bloomberg, Judge Pohlmann said that even if the
administrator succeeds in specifying the losses, the court is
likely to dismiss the case against the six former supervisory
members.

                        About Arcandor AG

Germany-based Arcandor AG (FRA:ARO) -- http://www.arcandor.com/--
formerly KarstadtQuelle AG, is a tourism and retail group.  Its
three core business areas are tourism, mail order services and
department store retail.  The Company's business areas are covered
by its three operating segments: Thomas Cook, Primondo and
Karstadt.  Thomas Cook Group plc is a tour operator with
operations in Europe and North America, set up as a result of a
merger between MyTravel and Thomas Cook AG.  It also operates the
e-commerce platform, Thomas Cook, supporting travel services.
Primondo has a portfolio of European universal and specialty mail
order companies, including the core brand Quelle.  Karstadt
operates a range of department stores, such as cosmopolitan
stores, including KaDeWe (Kaufhaus des Westens), Karstadt
Oberpollinger and Alsterhaus; Karstadt brand department stores;
Karstadt sports department stores, offering sports goods in a
variety of retail outlets, and a portal, karstadt.de that offers
online shopping, among others.


ECM REAL ESTATE: Net Loss Widens to EUR94.5 Million in 2010
-----------------------------------------------------------
Lenka Ponikelska at Bloomberg News reports that ECM Real Estate
Investments AG's loss widened last year after the value of its
assets fell and rental income lowered.

According to Bloomberg, ECM said in a presentation on its Web site
on Wednesday that the net loss for 2010 was EUR94.5 million
(US$137 million) compared with EUR62.3 million a year earlier.
Its total asset value dropped 54% to EUR156 million, Bloomberg
notes.

ECM's board will hold talks about options for restructuring the
company or sending it into bankruptcy, Bloomberg discloses.  The
company, as cited by Bloomberg, said in the presentation that it
will negotiate with creditors about different options over the
"next days".

As reported by the Troubled Company Reporter-Europe on April 14,
2011, CTK newswire, citing the insolvency registry Web site,
disclosed that ECM's insolvency case, proposed by Ceska Sporitelna
AS, was rejected by a Prague court.  On April 13, 2011, the
Troubled Company Reporter-Europe, citing Bloomberg News, related
that Ceska Sporitelna, the Czech unit of Erste Bank AG, filed an
insolvency proposal against ECM and a proposal to reorganize the
company in order to satisfy creditors' claims.  Ceska Sporitelna
said in a filing posted on the Czech insolvency registry Web site
that ECM owes the lender interest payments on bonds worth CZK7.22
million (US$426 million), which are overdue, Bloomberg disclosed.

ECM Real Estate Investments AG is a developer in central Europe.
It built Prague's tallest building.


VERSATEL AG: S&P Affirms 'B+' Long-Term Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
German alternative telecom operator Versatel AG to negative from
stable.  The 'B+' long-term corporate credit rating was affirmed.

"The negative outlook reflects our expectation that Versatel's
credit metrics may deteriorate over the course of 2011 due to
continued fierce competitive pressure and subscriber losses in the
residential segment and lower wholesale revenues, which we think
are unlikely to be offset by moderately higher revenues from
business customers and cost-cutting," said Standard & Poor's
credit analyst Matthias Raab.

"Due to our expectations of lower revenues and weak EBITDA
margins, we anticipate the company's gross debt-to-EBITDA ratio,
as adjusted by Standard & Poor's, will deteriorate to about 4.4x
at year-end 2011 from 4.1x as at Dec. 31, 2010.  Nevertheless, we
expect that Versatel's credit metrics could slightly improve in
2012 following the completion and depending on the success
of its 'transform' project, which aims to significantly reduce
overhead costs and convert fixed costs into variable costs," S&P
related.

In 2010, Versatel's residential revenues declined by 13% year on
year to EUR279 million and its wholesale data traffic also
declined slightly by 5% to EUR78 million.  "In our base-case
assessment, we anticipate that these revenue trends will prevail
in 2011.  We also expect significantly lower wholesale voice
revenues from its large customer Hansenet, a subsidiary of the
Spanish telecom operator Telefonica S.A.," S&P said.

"In 2011, we anticipate that Versatel's revenues could decline by
about 13% and its reported EBITDA margin (after restructuring
provisions) could remain weak at about 20%.  Furthermore, we
expect Versatel will generate only mildly positive free operating
cash flow (FOCF) in 2011 due to meaningful restructuring costs and
lower EBITDA. In 2010, Versatel generated FOCF of EUR38 million,
down from EUR46 million in 2009," S&P noted.

"The negative outlook reflects the possibility of a downgrade if
Versatel is unable to extend its RCF by the end of the third
quarter of 2011, if the company generates negative FOCF, or if we
concluded that Versatel's EBITDA and FOCF generation are unlikely
to recover materially in 2012 from a low point in 2011," said
Mr. Raab.


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DRYSHIPS INC: Ocean Rig Prices Senior Unsecured Bonds Offering
--------------------------------------------------------------
DryShips Inc. announced on April 13, 2011, the pricing of US$500
million aggregate principal amount of 9.5% Senior Unsecured Bonds
Due 2016 offered by its majority-owned subsidiary Ocean Rig UDW
Inc. in a private placement.  The offering has been made to
Norwegian professional investors and eligible counterparties as
defined in the Norwegian Securities Trading Regulation 10-2 to
10-4, to non-United States persons in offshore transactions in
reliance on Regulation S under the Securities Act of 1933, as
amended and in a concurrent private placement in the United States
only to qualified institutional buyers pursuant to Rule 144A under
the Securities Act.

The proceeds of the offering are expected to be used to finance
Ocean Rig's newbuilding drillships program and general corporate
purposes.  The offering is scheduled to close on April 27, 2011,
subject to customary closing conditions.

The Bonds have not been registered under the Securities Act or the
securities laws of any other jurisdiction and may not be offered
or sold in the United States or to or for the benefit of U.S.
persons unless so registered except pursuant to an exemption from,
or in a transaction not subject to, the registration requirements
of the Securities Act and applicable securities laws in other
jurisdictions.

                        About DryShips Inc.

Based in Greece, DryShips Inc. -- http://www.dryships.com/--
-- owns and operates drybulk carriers and offshore oil
deep water drilling units that operate worldwide.  As of September
10, 2010, DryShips owns a fleet of 40 drybulk carriers (including
newbuildings), comprising 7 Capesize, 31 Panamax and 2 Supramax,
with a combined deadweight tonnage of over 3.6 million tons and
6 offshore oil deep water drilling units, comprising of 2 ultra
deep water semisubmersible drilling rigs and 4 ultra deep water
newbuilding drillships.

DryShips's common stock is listed on the NASDAQ Global Select
Market where it trades under the symbol "DRYS".

The Company's balance sheet at Sept. 30, 2010, showed
US$5.80 million in total assets, US$1.90 million in total current
liabilities, US$1.10 million in total noncurrent liabilities, and
stockholders' equity of US$2.80 million.

On Nov. 25, 2010, DryShips Inc. entered into a waiver letter
for its US$230.0 million credit facility dated September 10, 2007,
as amended, extending the waiver of certain covenants through
Dec. 31, 2010.

As reported in the Troubled Company Reporter on Sept. 29, 2010,
the Company said it is currently in negotiations with its lenders
to obtain waivers, waiver extensions or to restructure its debt.
As of June 30, 2010, the Company's theoretical exposure (current
portion of long-term debt less cash and cash equivalents less
restricted cash) amounted to US$761.4 million.


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EIRCOM GROUP: Taps Alvarez & Marsal for Restructuring Advice
------------------------------------------------------------
Donal O'Donovan at Irish Independent reports that Eircom Group has
hired US consultants Alvarez & Marsal as external advisers as the
company gets ready to thrash out a debt restructuring agreement
with lenders in the coming weeks.

The Alvarez & Marsal retention is the latest sign that Eircom is
becoming a magnet for international bankers and lawyers, with
seven separate teams set to be in place when restructuring talks
get under way in earnest, Irish Independent notes.

According to Irish Independent, under debt market rules all
lenders in restructuring talks can demand to have the cost of
hiring advisers paid for by the debtor company.

Irish Independent says the Eircom role is much more limited with
Alvarez & Marsal providing external advice to Mark Wilson, the
interim chief financial officer appointed in January.  The
engagement was confidential but was confirmed by a spokesman for
Eircom on Tuesday in response to a question from the Irish
Independent.  According to Irish Independent, the spokesman said
Alvarez & Marsal has been working with the company for the past
month.  Its role is in addition to the banking advice already
being provided to the Eircom board by US investment banks JPMorgan
and Gleacher Shacklock, Irish Independent states.

Advisers are being drafted in after Eircom CEO Paul Donovan warned
that the company is in danger of breaching the terms of its debt,
Irish Independent relates.

The latest hire brings the tally of outside firms acting on Eircom
close to double figures as a huge assortment of parties prepare to
lock horns in talks on tackling Eircom's EUR3.75 billion debt
pile, Irish Independent says.

Headquartered in Dublin, Ireland, Eircom Group --
http://www.eircom.ie/-- is an Irish telecommunications company,
and former state-owned incumbent.  It is currently the largest
telecommunications operator in the Republic of Ireland and
operates primarily on the island of Ireland, with a point of
presence in Great Britain.


TCS FINANCE: Fitch Assigns Expected 'B' Rating to Upcoming Notes
----------------------------------------------------------------
Fitch Ratings has assigned TCS Finance Limited's issue of loan
participation notes an expected Long-term rating of 'B(exp)' and
Recovery Rating of 'RR4'.

TCS Finance Limited, an Ireland-domiciled special purpose vehicle,
will use the proceeds from the notes to finance a loan to TCS-bank
and will only pay noteholders principal and interest received from
the bank.  The final rating of the notes is contingent upon the
receipt of final documentation conforming materially to
information already received.

TCS-bank is the core operating entity of the broader group
consolidated at the level of Cyprus-domiciled Egidaco plc.  TCS-
bank's ratings are: Long-term foreign and local currency Issuer
Default Ratings (IDRs) of 'B', Short-term IDR of 'B', Individual
Rating of 'D/E', Support Rating '5' and National Rating of
'BBB(rus)'.  The Outlooks on the IDRs and National Long-term
rating are Stable.  gidaco plc will provide a guarantee to TCS
Finance Limited in respect to TCS-bank's obligations under the
loan agreement.

The notes will rank at least equally with TCS-bank's other senior
unsecured obligations, save those preferred by relevant
legislation. Under Russian law, the claims of retail depositors
rank above those of other senior unsecured creditors.  At end-
February 2011, retail deposits accounted for 42.5% of total
liabilities of TCS-bank according to the bank's local accounts.

TCS is the first and currently only credit card monoline company
in Russia, established in 2006 by Russian businessman Oleg Tinkov.
A combined 29% stake in the group was subsequently sold to Goldman
Sachs and Scandinavian private equity fund Vostok-Nafta. Following
rapid growth in 2010, the bank had a market share of approximately
4.5% of credit card receivables at year-end.


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


PB DOMICILIO: S&P Affirms 'BB (sf)' Rating on Class E Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
all classes of notes in PB Domicilio 2007-1 Ltd.  At the same
time, S&P removed from CreditWatch negative its ratings on the
class A1+, A2+, and B notes.

"The rating actions reflect the application of our updated
counterparty criteria for structured finance transactions.  Due to
the possibility of non-compliance with these criteria, we placed
the class A1+, A2+, and B class notes on CreditWatch negative when
our updated counterparty criteria became effective on Jan. 18,
2011.  Following our review of the transaction documentation, we
have removed our ratings on these classes from CreditWatch
negative," S&P related.

The rating affirmations on all classes of notes follow a review of
the transaction performance.  Credit support is provided by a
threshold amount, which is available to absorb losses before any
losses can be claimed on the notes, and by the subordinated
classes.  The threshold amount has built up from a synthetic
excess spread mechanism of 50 basis points (bps) per year on the
performing balance of the portfolio, to a cap of EUR9.2 million
since closing.  This amount remains fully funded, with synthetic
excess spread in place to replenish the threshold amount if losses
arise.

"Since closing, we have observed a strong performance of this
transaction, in our opinion.  The severe delinquencies (defined as
90+ day arrears) have stabilized over the past five quarters, at
around 2.7%.  The growth in cumulative defaults has picked up
slightly from the last investor report in March 2011, to 2.69%
from 2.63%.  Due to a current low average loan-to-value (LTV)
ratio of 30.18%, however, we do not expect any realized losses to
have any significant impact on the transaction performance.
Furthermore, investor reports have documented no realized losses
to date.  However, given the long foreclosure periods in Italy
(120 months in the south and 48 months in the north, as per our
criteria), we believe it is too early to make any solid
conclusions regarding trends in losses," S&P stated.

The transaction has also experienced strong deleveraging due to
increasing constant prepayment rates (CPRs).  As of the current
pool report dated March 15, 2011, the CPR had increased by 6.18%
from the previous year, to the current level of 11.9%.  Following
the deleveraging experienced in the pool since closing, the pool
factor of PB Domicilio 2007-1 has reduced to 62%.

With improving delinquencies and low defaults, combined with a
fully topped-up threshold amount and increased credit enhancement
figures, PB Domicilio 2007-1 has performed in line with our
expectations.  "Subsequently, we have affirmed our ratings on all
classes of notes.  We will continue to monitor the development of
credit events and actual losses in the transaction," S&P noted.

PB Domicilio 2007-1 is a partially-funded synthetic Italian
residential mortgage-backed securities (RMBS) transaction.

Ratings List

Class             Rating
            To               From

PB Domicilio 2007-1 Ltd.
EUR69.6 Million Floating-Rate Credit-Linked Notes

Ratings Affirmed and Removed From CreditWatch Negative

A1+         AAA (sf)         AAA (sf)/Watch Neg
A2+         AAA (sf)         AAA (sf)/Watch Neg
B           AA (sf)          AA (sf)/Watch Neg

Ratings Affirmed

C           A (sf)
D           BBB (sf)
E           BB (sf)


SESTANTE FINANCE: S&P Affirms 'BB (sf)' Rating on Class B Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'A (sf)' from 'AA
(sf)' and removed from CreditWatch negative its rating on Sestante
Finance S.r.l.'s class A notes series 5.  "At the same time, we
affirmed our 'BB (sf)' rating on the class B notes in this
transaction.  We then withdrew our ratings on both classes of
notes at the issuer's request," S&P related.

"The rating actions reflect our review of the transaction
documents and our assessment of the transaction's credit and
structural features," S&P noted.

S&P continued, "We found that the downgrade language in the
transaction documents relating to Banca Popolare dell'Emilia
Romagna S.C., the swap counterparty that is participating in the
transaction, is not consistent with our updated counterparty
criteria.  We have therefore lowered our rating on the class A
notes to 'A (sf)', which is equal to the long-term rating on the
swap counterparty plus one notch, as described in our criteria.
Subsequently, we have removed the rating from CreditWatch
negative," S&P stated.

"This downgrade follows the application of our updated
counterparty criteria on Jan. 18, 2011, when we placed our rating
on the class A notes on CreditWatch negative for counterparty
reasons," S&P said.

"Our assessment of the transaction's credit and structural
features indicates that the performance is still in line with the
results of our last review of the transaction on March 6, 2011.
We have therefore affirmed our rating on the class B notes,"
according to S&P.

S&P then withdrew its ratings on all the notes in the transaction
at the issuer's request.

Sestante Finance series 5 is an Italian RMBS transaction
originated by Meliorbanca SpA.  It closed in June 2008.

RATINGS LIST

Class                       Rating
                  To                        From

Sestante Finance S.r.l.
EUR325.48 Million Asset-Backed Floating-Rate Notes Series 5

Rating Lowered, Removed From CreditWatch Negative, and Withdrawn

A                 A (sf)                    AA (sf)/Watch Neg
                  NR                        A (sf)

Rating Affirmed and Withdrawn

B                 BB (sf)
                  NR                        BB (sf)


===========
L A T V I A
===========


PRIVATBANK AS: Moody's Puts 'B2' Rating on Review for Downgrade
---------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the B2 long-term local and foreign-currency deposit
ratings and the standalone E+ bank financial strength rating
(BFSR) of PrivatBank AS.  Concurrently, Moody's affirmed the
bank's Not Prime short-term rating.

                        Ratings Rationale

The review for possible downgrade of PrivatBank's ratings
primarily reflects Moody's concerns that PrivatBank's banking
license may be revoked by Latvia's Financial and Capital Market
Commission (the Commission).  The Commission has the right, but is
under no obligation, to revoke licenses in cases where
shareholders with a significant share of a bank's equity (over
10%) have had their voting rights suspended.  In the case of
PrivatBank, the potential revoking of the license is connected
with the suspension of Unimain Holdings' voting rights, one of the
bank's two shareholders.  The Commission has given PrivatBank six
months to resolve the issue, starting from Jan. 21, 2011.

Moody's understands that PrivatBank plans to resolve the issue
through a LVL66 million increase in share capital, through the
issuance of additional shares, thereby diluting Unimain's holdings
below the 10% threshold.  Approval for this capital raising was
granted at a Shareholders' meeting on March 22, 2011, where both
PrivatBank AS's Ukrainian parent Privatbank (B3/NP/D-) and Unimain
Holdings provided their consent for the share increase.

The bank's B2 long-term deposit rating continues to reflect
Moody's assessment that there is a moderate probability of
parental support from Privatbank (Ukraine) -- which owns 75% of
the bank's capital -- resulting in a one-notch uplift from the B3
baseline credit assessment (BCA).  Furthermore, Moody's continues
to believe that there is no probability of systemic support for
PrivatBank in the event of a stress situation.

If the bank fails to raise the capital, it could lead to a multi-
notch downgrade of the bank's ratings.  The review for possible
downgrade applies to both the standalone BFSR of PrivatBank and
the long-term deposit ratings, which currently factor in one notch
of parental support, as the revocation of the banking licence
would not be compensated by any level of support.

The review will also factor in Moody's concerns regarding
PrivatBank's: (i) weakening profitability levels, with negative
net interest income reported for 2010; (ii) high industry and
borrower concentration in its loan book; (iii) a high level of
problem loans in the customer loan portfolio; and (iv) a high
(albeit reducing) level of non-resident deposits.

As a group, PrivatBank reported a pre-tax loss of LVL10.9 million
in 2010, compared with a LVL15.8 million loss for 2009. The bank
also reported negative net interest income, reflecting a further
deterioration in core earnings.  PrivatBank's problem-loan ratio
decreased to 40% at year-end 2010 from 46% in 2009, although this
is high compared with the bank's regional peer group of rated
banks.  Moody's notes the bank's increased deposit base but also
believes that the bank's inability to re-invest these deposits at
a higher interest rate resulted in a negative net interest margin
in 2010.

During the review, Moody's says that it will monitor the planned
capital raising and the impact on the regulatory position, as well
as PrivatBank's profitability and asset quality over H1 2011 in
order to assess the need for increased provisioning beyond
expectations already taken into account in its loss-scenario
analysis.  Increases in provisioning would exert additional strain
on PrivatBank's already subdued performance.  Moody's adds that
evidence of an expected significant reduction in problem loan
levels and a sustained improvement in profitability could,
however, lead to a stabilization of the rating.

Moody's previous rating action on PrivatBank was implemented on
Oct. 12, 2010, when the E+ BFSR and the B2 long-term debt and
deposit ratings of PrivatBank were affirmed with a negative
outlook.

The principal methodologies used for this rating were "Bank
Financial Strength Ratings: Global Methodology" published in
February 2007, and "Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology" published in
March 2007.

Headquartered in Riga, Latvia, PrivatBank reported total
consolidated assets of LVL274 million (EUR390 million) at the end
of 2010.


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


GEO TRAVEL: Moody's Assigns '(P)B2' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has assigned a corporate family rating
(CFR) and Probability of Default Rating (PDR) of (P)B2 to GEO
Travel Finance SCA Luxembourg.  Moody's has also assigned a
(P)Caa1 to the proposed 8-year EUR175 million senior unsecured
notes.  The outlook on the ratings is stable.

                       Ratings Rationale

This is the first time that Moody's has assigned ratings to GEO.
Upon completion of the pending acquisition of Opodo, which awaits
EU Commission anti-trust approval, GEO will consist of Opodo, as
well as eDreams (acquired by Permira in August 2010), and Go
Voyages (acquired by AXA Private Equity in May 2010).  As such, it
is expected to become the largest on-line travel agency (OTA) in
Europe in the flight segment, and the third largest in Europe all
products included (after Expedia and Priceline).  The company
expects it will also be the fifth largest OTA worldwide, all
products included. GEO's market penetration is expected to be
particularly strong in its key markets of France, Spain, Italy,
Germany and Scandinavia.  The ratings and outlook reflect this
strong position in the European on-line travel market, and the
expectation that this market will continue to grow at least in
line with the overall travel market.  GEO's revenue structure is
largely fee-based, and hence viewed as less exposed to yields than
the airline industry.  Nevertheless, the ratings are also
constrained by the company's relatively small scale, and barriers
to entry to the industry which are deemed moderate. Prior to the
completion of the acquisition of Opodo, the proceeds of the notes
will be held in a segregated escrow account which will contain an
amount equal to the proceeds from the offering of the notes.  If
the transaction is not completed as anticipated, the issuer is
obliged to redeem the bonds plus accrued and unpaid interest.  The
ratings have been assigned on a provisional basis as they are
conditional on the successful conclusion of the acquisition and
the completion of the refinancing and capital structure under
substantially the same terms as outlined below.

The company's liquidity post refinancing is expected to remain
strong, based on the expected adequate cash balance at the close
of the transaction, as well as its EUR140 million committed
revolving credit facility (RCF), which is expected to be undrawn.
Moody's notes nevertheless that c.EUR50 million of the RCF will be
committed as collateral for the company's operational guarantees
to IATA; and that a degree of the cash balance also reflects the
transitory nature of cash received from clients and passed on to
suppliers.  The company's liquidity is supported by its positive
free cash flow generation potential, albeit subject to seasonal
working capital swings, in line with the travel industry.  The RCF
and term loans contain three financial covenants for leverage,
fixed charge cover and a debt service cover, for which Moody's
expects there will be comfortable headroom at the time of closing.

On a pro forma basis for the transaction, and based on recurring
pro forma EBITDA for 2010, Moody's estimates gross adjusted
leverage to be c.4.8x.  Moody's notes, nevertheless, that the
recurring EBITDA is before significant non-recurring items (eg.
transaction and other fees), which Moody's would not necessarily
adjust for, and Moody's believes these may occur in the current
financial year as well, albeit to a lesser degree.  The stable
outlook factors in the rating agency's expectation that this
metric will remain below 5x over the medium term.  The ratings
also factor in sustained positive free cash flow generation and a
strong liquidity profile.  Upward pressure on the rating or
outlook could occur if the leverage metric were to trend below 4x
on a sustainable basis. Conversely, downward pressure on the
rating or outlook could occur if leverage were to be sustained
above 5x, or if concerns were to develop about liquidity.

The company's debt capital structure will consist principally of
the senior secured credit facilities of EUR340 million, and the
proposed senior unsecured notes of EUR175 million.  After
completion of the transaction, the notes will be released to GEO
Travel Finance SCA, the parent holding company and the ultimate
owner of the operating subsidiaries and also a borrower of the
revolving credit facility.  The RCF and term loans will be secured
on substantially all assets of the operating subsidiaries, and
guaranteed by subsidiaries representing at least 85% of group
sales and EBITDA.  Under the terms of an intercreditor agreement,
this security will rank ahead of the security for the proposed
high yield notes.  On the basis of this structural subordination,
the notes are rated (P)Caa1 (LGD6), two notches below the CFR.

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

The principal methodology used in rating GEO was "Business and
Consumer Service Industry Rating Methodology," published in
October 2010 and available on www.moodys.com.  Other methodologies
and factors that may have been considered in the process of rating
this issuer, including Loss Given Default for Speculative Grade
Issuers in the US, Canada and EMEA, published June 2009, can also
be found on Moody's website.

GEO Travel Finance SCA Luxembourg was registered in Luxembourg on
Feb. 15, 2011. It will become an operating company upon completion
of the pending acquisition of Opodo, to be merged with Go Voyages
and eDreams.  On a pro forma basis for this acquisition for 2010,
GEO would have generated revenue margin and pro forma recurring
EBITDA of EUR303 million and EUR106.3 million, respectively.


ROSETTA I: Moody's Upgrades Rating on Class B Notes to 'B2 (sf)'
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of two classes
of notes issued by Rosetta I S.A.  The notes affected by today's
rating actions are:

Issuer: Rosetta I S.A.

   -- EUR84.5M Class A Floating Rate Notes due 2013, Upgraded to
      A2 (sf); previously on Apr 9, 2009 Downgraded to B1 (sf)

   -- EUR23M Class B Floating Rate Notes due 2013, Upgraded to B2
      (sf); previously on Apr 9, 2009 Downgraded to Caa1 (sf)

                        Ratings Rationale

Rosetta I S.A. is a non-granular cash-flow CDO exposed to hybrid
capital issued by European banks.  The securities are non-
cumulative callable perpetual Tier 1 capital and Upper Tier 2
capital mostly featuring cumulative coupons.

In addition to the default risk of these securities, the CDO is
exposed to liquidation risk.  According to transaction
documentation, a security will be designated as "affected"
following the occurrence of a coupon suspension or an extension
beyond the first call-date.  Such affected securities will be
liquidated in the market after approximately half a year.

The upgrade rating actions taken is mainly driven by (1)
significant amortization of the senior class thanks to a higher
than expected number of calls and higher than expected realized
liquidation values and (2) the revision of Moody's expectations
related to the non-call and coupon suspension probabilities of the
remaining securities in the portfolio.

Twenty two securities remain in the portfolio, each with a par
amount of EUR4 million.  The call dates concentrated in 2011 and
2012.  The original pool has been strongly reduced by way of call
redemptions and liquidations of affected securities.  In
consequence, class A has amortized to EUR38.93 million.  The
transaction still holds EUR8 million of principal proceeds to be
disbursed on the next payment date.

In Moody's view, for a portion of the issuers, the risk of a non-
call is reduced due to the improvement noted in some banks'
financial health and greater clarity about future hybrid criteria
for regulatory capital treatment.  Throughout the past two years,
non-call risk was reinforced in the context of a weakened
financial sector, reflected in a steep increase in hybrid capital
spreads and depressed hybrid security prices.  Moody's has
observed that a larger number of banks have called their hybrids
than previously anticipated and that market prices are stabilizing
close to par levels for a large number of hybrid securities in the
portfolio.

Moody's concluded that for ten of the securities included in the
pool, the liquidation risk is expected to mitigated by the
combination of the relatively strong financial position of the
corresponding issuers and the fact that most of the securities in
the portfolio would likely not qualify as regulatory capital
beyond 2013.

Moody's has assessed the twenty two securities and issuers in the
portfolio and inferred their probabilities to become affected.
For ten of the issuers, in the base case, the default risk is the
key risk factor.  Moody's has used the lower of the public
Baseline Credit Assessment of the issuer minus two notches and the
public Moody's security rating in connection with a 5% recovery
rate upon default.  The Baseline Credit Assessment is an
evaluation of a bank's standalone financial strength in absence of
systemic support.  The resulting average modelled rating of these
assets is Baa3.

For the other twelve assets, in the base case, a liquidation
scenario is considered the most likely outcome.  This view hinges
on the presence of one or more of the following characteristics:
issuer's specific announcement about non-call or coupon suspension
actions in the future, particularly weak financial condition of
the issuers, low security ratings or continued depression of the
corresponding security prices.  These securities were modeled at
Ca with a recovery equal to the lower of 50% and market price
minus a 5% liquidity haircut in the base case.

All callable assets were modelled at a maturity equal to first
call date plus half a year to cover the risk that an extension on
the first call date would expose the transaction to additional
default risk.  The default probability stress of 30% introduced by
Moody's in 2009 for corporate issuers globally has been applied to
the securities not already treated as Ca.  Standard correlation
assumptions for over-concentrated financial pools were applied,
leading to an average correlation close to 50%.

Moody's has tested the sensitivity of the tranche ratings to the
assessment of liquidation risk and liquidation values. Under the
assumptions that liquidation values average 40% (instead of 50% in
the base case) and that three additional securities become
affected which are not expected to become affected in the base
case, the model outputs would still be commensurate with the A2
rating level of Class A and three notches below the B2 rating
level of Class B.

The principal methodologies used in these ratings were "Moody's
Approach to Rating Collateralized Loan Obligations" published in
August 2009 and "Moody's Approach to Rating Corporate
Collateralized Synthetic Obligations" published in September 2009.
In addition to these methodologies, Moody's has used the specific
approach described in the section above to address the liquidation
risks present in this transaction.

Under these methodologies, Moody's relies on a simulation based
framework.  Moody's therefore used CDOROM, 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.


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


CARMEUSE HOLDING: S&P Lifts Long-Term Corp. Credit Rating to 'BB-'
------------------------------------------------------------------
Standard & Poor's Ratings Services said it had raised its long-
term corporate credit rating on lime and limestone producer
Carmeuse Holding S.A. to 'BB-' from 'B+'.  The outlook is stable.

"At the same time we assigned a 'BB-' issue rating to a proposed
US$375 million issue of senior secured notes and a senior secured
revolving facility.  We also assigned a recovery rating of '3' to
both.  The new debt is to be issued by group company Calcipar
S.A.," S&P related.

"The rating revision reflects our re-assessment of Carmeuse's
business risk and our working assumptions that the group will be
successful in placing its proposed US$375 million senior secured
notes," said Standard & Poor's credit analyst Per Karlsson.

"For this reason, we have revised our liquidity assessment to
'adequate' from 'less-than-adequate' previously," S&P stated.

"We now assess the group's business risk profile as 'satisfactory'
compared with 'fair' previously.  The revision of the business
risk profile follows a re-assessment of Carmeuse's solid position
as the second-largest lime producer globally, in combination with
the industry's high barriers to entry, the group's proven
resilient operating margins, and a comparison with our ratings
on building material companies.  We believe that cost cutting
efforts during the recent financial crisis significantly improved
the group's cost structure.  We also note Carmeuse's ability to
quickly pass on increasing energy costs and believe this is due to
its strong position in the market.  In addition, we take comfort
from the fact that about 50% of sales are to relatively stable end
markets, such as the flue gas treatment market.  A key weakness
remains the company's exposure to highly cyclical end markets,
such as steel and construction, which account for the remainder of
sales," S&P related.

"We expect successful execution of the proposed re-financing to
extend much of the group's debt maturity to 2016 and 2018.  Some
debt maturities will remain in 2014 when notes worth EUR219
million fall due.  Management has, however, prudently arranged
that EUR120 million of this maturity will be met by a back-stop
line under the new credit facility.  This significantly reduces
refinancing risk in our view," S&P stated .

"We continue to qualify Carmeuse's financial risk profile as
'aggressive' because of the group's high levels of adjusted debt
and high capital spending over the cycle.  In addition we expect
an increase in the company's capital spending levels over the next
five years, which in our assumptions implies negative free
operating cash flow (FOCF) over the next 2-3 years and only
modestly positive FOCF thereafter.  In addition, over the next few
years we do not expect management to adhere to its stated
financial policy target of net debt to EBITDA of 2.0-2.5x, which
is a further concern.  Furthermore, we believe acquisition risk
may come back at some point.  In 2010, Carmeuse generated funds
from operations (FFO) of about EUR195 million, which easily
covered capital spending of EUR101 million.  Fully adjusted debt
stood at EUR893 million (adjusted for operating leases, pensions,
carbon dioxide financing, and a securitization program) and the
ratio of fully adjusted FFO to debt stood at 22%," S&P noted.

"We expect fully adjusted FFO to debt of 20%-25% and debt to
EBITDA of 3x-4x over the next few years, which we think is in line
with the rating.  Negatively, in our base-case scenario we expect
FOCF to be negative, at least in 2011 and 2012," S&P related.

"The stable outlook reflects our expectations that the group will
continue to achieve solid EBITDA margins above 20% and adjusted
FFO to debt of 20% or more," S&P related.


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


ALFA BOND: Fitch Assigns Expected 'BB' Rating to Upcoming Notes
---------------------------------------------------------------
Fitch Ratings has assigned Alfa Bond Issuance plc's upcoming USD
senior issue of limited recourse loan participation notes an
expected 'BB (exp)' rating.

The proceeds from the issue will be on-lent to OJSC Alfa-Bank
(Alfa-Bank), rated Long-term Issuer Default Rating (IDR)
'BB'/Stable, Short-term IDR 'B', Individual Rating 'C/D', Support
Rating '4', Support Rating Floor 'B' and National Long-term rating
'AA-(rus)'/Stable.

The terms of the issue provide a put option to bondholders on the
occurrence of a put event, which may be triggered by a negative
rating action in respect of a change of control in ABH Financial
Limited, the parent company of Alfa Banking Group (ABG), of which
Alfa-Bank is the main operating entity.  The loan will be
guaranteed by ABH Financial Limited.

ABG is the largest privately-owned banking group in Russia by
assets.  The group is ultimately owned by six individuals, with
the largest stakes held by Mikhail Fridman (36.47%) and German
Khan (23.27%).


EVRAZ GROUP: Moody's Assigns '(P)B2' Rating to Unsecured Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2 (loss-
given default (LGD) 5) rating to the proposed US dollar-
denominated senior unsecured notes to be issued by Evraz Group
S.A.  The maturity, the size and the pricing of the notes are
subject to the prevailing market conditions during placement.  The
outlook on the rating is positive.

Concurrently, Evraz has launched a tender offer targeting US$350
million out of its outstanding US$1.156 billion worth of senior
unsecured notes maturing in 2013.

Upon a conclusive review of the transaction and a full set of
associated documentation, Moody's will assign a definitive rating
to the notes.  A definitive rating may differ from a provisional
rating.

                        Ratings Rationale

"Moody's assignment of the (P)B2 LGD 4 rating reflects that the
notes will be: (i) structurally subordinated to other unsecured
indebtedness of operating companies of the group, currently
representing 27% of the total debt but expected to be reduced
below 18% in the medium term; (ii) used to refinance Evraz's
existing indebtedness; and (iii) senior unsecured and have pari
passu ranking with other unsecured obligations of Evraz," says
Larissa Loznova, a Moody's Vice President-Senior Analyst and lead
analyst for Evraz.

Evraz will use the proceeds from the proposed issuance to tender
the outstanding notes due in 2013 and repay other outstanding
indebtedness.

Moody's notes the improvements in Evraz's operating performance
and credit metrics since the trough in the steel market, and
particularly during 2010.  Evraz's audited financial results for
2010 indicate improved profitability, with an EBITDA margin of
17.8%, which allowed the group to reduce leverage on a gross debt
basis to 3.5x by the end of 2010 from 6.7x in 2009.  Indeed, the
rating agency expects a further reduction in leverage, towards
2.5x-3.0x by the end of 2011, although the group's gross debt
remains largely unchanged.

Evraz's recent performance was supported by improving market
fundamentals in its key markets including Russia and North
America.  Despite significant increases in raw material prices for
iron ore and coking coal, a high level of vertical integration
allowed the group to sustain margin pressure and capitalise on the
market recovery.

Furthermore, Moody's recognises the efforts made by Evraz to
further strengthen its liquidity profile and extend its debt
maturities, with the group facing no significant debt maturities
over the next two years.  Moody's also notes that the group has
achieved sufficient headroom under the existing financial
covenants based on 2010 full-year results.

The positive outlook on the rating reflects Moody's expectation of
continued improvements in Evraz's operating performance and credit
metrics during 2011.

The current CFR of B1 is supported by: (i) the fact that Evraz is
a strong global steel producer with a cost-efficient asset base
and a business profile that has gained geographical diversity in
the past few years, thereby reducing the group's dependence on
Russia; (ii) expectations of a continuing recovery in the global
steel market; (iii) further improvement in the group's credit
metrics; (iv) the strengthening of its liquidity profile and
further extension of its debt maturities; (v) Moody's expectation
that the group will use the free cash flow it generates to reduce
its debt; and (vi) the group's intention to restore its financial
leverage, measured by net reported debt/EBITDA, at the self-
imposed target of 2.0x in the medium term.

In Moody's view, the launched tender offer in relation to Evraz's
outstanding USD1.156 billion worth of senior unsecured notes due
in 2013 does not directly impact the (P)B2 rating assigned to the
group's proposed notes issuance.

              Last Rating Action & Principal Methodology

Moody's last rating action on Evraz was implemented on Dec. 20,
2010, when the rating agency changed the outlook on the group's
rating to positive from stable.

The principal methodology used in this rating was Global Steel
Industry published in January 2009.

Evraz Group is the largest vertically integrated steel company in
Russia (by volume and assets), with assets also in Ukraine,
Europe, North America and South Africa.  In 2010, these assets:
(i) produced 16.3 million tonnes of crude steel (6.3% increase Y-
o-Y), including 14.7 million tonnes of rolled products; (ii)
reported revenue of USD13.4 billion (38% increase Y-o-Y); and
(iii) generated EBITDA of US$2.4 billion (90% increase Y-o-Y).

Evraz's principal assets are steel plants in Russia, Europe, North
America, South Africa and Ukraine, iron ore and processing
facilities, as well as coal mines, logistics and trading assets.

Lanebrook Ltd holds 72.9% of the share capital of the group.  Some
27.1% of share capital is in free float.


EVRAZ GROUP: S&P Assigns 'B+' Rating to US$500MM Unsecured Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services said it has assigned its 'B+'
issue rating to the proposed US$500 million unsecured,
nonguaranteed notes to be issued by Russia-headquartered
international steel producer Evraz Group S.A.  (B+/Stable; Russia
national scale rating 'ruA').  "The issue rating is the same as
our corporate credit rating on Evraz.  At the same time, we have
assigned a recovery rating of '4' to the proposed notes,
indicating our expectation of average (30%-50%) recovery in the
event of a payment default," S&P related.

"We understand that Evraz will use most of the proceeds from the
proposed issuance to refinance existing debt.  If issuance
proceeds were to exceed US$500 million, this would not have a
material impact on our ratings, assuming the proceeds were used
for refinancing purposes," S&P noted.

"The issue and recovery ratings are subject to our satisfactory
review of final documentation," according to S&P.

"We expect the notes to have fairly typical documentation for
issuance of this kind, including an incurrence covenant limiting
the raising of additional debt, among other things.  According to
the draft documentation, the incurrence test is set at a maximum
debt-to-EBITDA ratio of 3.0x.  We expect the final documentation
to include restrictions on mergers, acquisitions, and asset
disposals, although these are subject to a number of carve-outs.
Also, according to the draft documentation, the group would no
longer be obliged to comply with certain covenants if the issuer
achieved investment-grade status," S&P said.

In order to determine recoveries, Standard & Poor's simulated a
default scenario.  "Under our hypothetical scenario, we envisage,
among other things, a deterioration in Evraz's credit quality due
to sustained weak steel prices, volume declines, restructuring,
and higher costs," S&P related.

This scenario leads to a default in 2014, with the company unable
to refinance its maturing debt and EBITDA having declined to $1.35
billion-$1.41 billion.  "The default year is one year later than
in our previous hypothetical scenario, reflecting our assumption
of successful issuance of the proposed notes," S&P stated.

"Recovery prospects for the proposed notes are supported by our
expectation that, in the event of default, Evraz would be
reorganized rather than liquidated, given its leading position in
its domestic market, vertical integration, low-cost operations,
and geographic diversity," S&P noted.

At the hypothetical point of default, S&P values Evraz at US$5.7
billion to $6.1 billion, based mainly on a market multiple
approach.

"After deducting priority claims, we assess recovery prospects to
be in the 30%-50% range, hence our recovery rating of '4'.
Recovery prospects are limited by the relatively high level of
prior-ranking debt facilities," S&P related.

Ratings List

New Rating

Evraz Group S.A.
Proposed $500 mil. Unsecured Notes      B+
  Recovery Rating                       4


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


CAIXA D'ESTALVIS: Fitch Cuts LT Issuer Default Rating to 'BB+'
--------------------------------------------------------------
Fitch Ratings has downgraded Caixa d'Estalvis Unio de Caixes de
Manlleu, Sabadell i Terrassa's (Unnim) Long-term Issuer Default
Rating (IDR) to 'BB+' from 'BBB-' with Stable Outlook, Short-term
IDR to 'B' from 'F3' and Individual Rating to 'D' from 'C/D'.
Unnim's Long-term IDR is now at its Support Rating Floor.

The rating actions reflect the need for the caja to increase its
core capital from a low base in the short term in light of
stricter regulatory core capital standards of 10%.  Unnim's
profitability has traditionally been low and tight margins,
together with lower volumes due to Spain's weak economic
prospects, will continue to affect internal capital generation.
Furthermore, the caja has to continue addressing its large
exposure to the Spanish construction and real estate sector.
Funding will remain a challenge for Unnim as the wholesale markets
remain closed for many Spanish cajas and there is stiff
competition for customer deposits.

Unnim has publicly stated that its preferred route to comply with
more stringent core capital requirements is to merge with another
entity.  Fitch will assess the effects on Unnim's ratings once
details of any integration plan are made available.  If the caja
fails to participate in an integration plan, it will ultimately
raise capital through the government's Fund for Orderly Bank
Restructuring (FROB) for EUR568 million.  The latter would result
in greater presence of the FROB in the caja and the potential for
interference by the European Commission under State Aid rules.
This could limit Unnim's capacity to carry out a more commercial
strategy based on profit maximization, as further restructuring
may be imposed.

Lending exposure to real estate/construction companies was still
high at 27% of total loans at end-2010.  This has materially
affected the caja's credit quality due to the sector downturn.
Unnim's impaired/total loans ratio stood at 7.5% (or a high 16.2%,
including gross foreclosed assets) at end-2010.  Loan impairment
coverage of 53% was adequate.  However, coverage on foreclosed
assets was 19% and Unnim will need to make further provisions on
these assets.

Unnim's end-2010 loans-to-deposit ratio improved to 128% from 145%
at end-2009 thanks mainly to loan de-leveraging, but the caja
remains reliant on wholesale funding.  Liquidity is backed by
EUR3.1 billion of readily available liquid assets (net of
haircuts) which, if needed, could be used to repay the caja's
long-term debt maturities for 2011-2013 of close to EUR3 billion.

Unnim was formed in July 2010 as a result of the merger of three
regional savings banks or cajas: Caixa d'Estalvis Comarcal de
Manlleu, Caixa d'Estalvis de Sabadell and Caixa d'Estalvis de
Terrassa.  Upon the formalisation of the merger, Unnim received
EUR380 million of temporary funds from the FROB in convertible
preference shares.  FROB funds and merger revaluations helped to
offset part of the bringing forward of credit losses and potential
contingent liabilities, fully charged against equity.

The caja's regulatory core capital ratio was tight at 6.4% at end-
2010 (4.2%, excluding FROB funds) and Fitch views the 10% core
capital level to be more adequate for its risk profile.  In
December 2010, the caja was granted EUR200 million of additional
FROB preference shares, which have yet to be disbursed, but will
help reduce the amount of direct FROB capital to be injected, if
needed.

Unnim, Spain's 13th-largest entity within the caja sector, focuses
on retail banking in the north-east region of Catalonia.  At end-
2010, it had 3,566 employees and 668 branches (93% of which in its
home region) and a national market share of c. 1% for loans.

The rating actions are:

   -- Long-term IDR: downgraded to 'BB+' from 'BBB-', Outlook
      Stable

   -- Short-term IDR: downgraded to 'B' from 'F3'

   -- Individual Rating: downgraded to 'D' from 'C/D'

   -- Support Rating: affirmed at '3'

   -- Support Rating Floor: affirmed at 'BB+'

   -- Subordinated debt: downgraded to 'BB' from 'BB+'

   -- Upper Tier 2 subordinated debt: downgraded to 'B' from 'BB'

   -- Preference shares: downgraded to 'B-' from 'B+'

   -- State-guaranteed debt: affirmed at 'AA+'


METROVACESA SA: Majority of Lenders Agree to Delay Debt Repayments
------------------------------------------------------------------
Sharon Smyth at Bloomberg News, citing Expansion, reports that
Metrovacesa SA reached agreement with 90% of its lenders to delay
debt repayments for five years.

According to Bloomberg, the newspaper said Metrovacesa will pay
the interest on its EUR5.76 billion (US$8.1 billion) worth of
loans but not the principle.

Bloomberg relates that the newspaper said Metrovacesa will also
present a scheme of arrangement, a court-approved plan between a
company and its lenders, in the U.K. to allow it to reach an
accord with its lenders to restructure debt.

Bloomberg notes that the newspaper said Metrovacesa is presenting
the scheme of arrangement under U.K. law because it states that
companies have to reach an agreement with at least 75% of
creditors, whereas in Spain creditor agreement must be 100%.

According to Bloomberg, the newspaper added that the company will
also stage a EUR1.2 billion capital increase.

Metrovacesa SA -- http://www.metrovacesa.com/-- is a Spain-based
company active in the real estate sector.  Its activities include
the acquisition, purchase, promotion and management of properties
primarily for rental purposes.  Its portfolio is structured in six
divisions: Offices, comprising more than 500,000 square meters of
leasable surface area; Shopping Centers, including five operating
centers and two in development; Hotels, comprising 14 operating
hotels and three in construction; Homes, providing residential
property construction and development services; Car Parks,
operating 13 parking lots located in Madrid, Valencia, Soria and
Santa Cruz de Tenerife, and Land, which portfolio consists of more
than three million square meters of land.  The Company is a parent
of Grupo Metrovacesa, a group which comprises a number of entities
with operations established in the United Kingdom, Germany and
France.


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


* CITY OF IVANO-FRANKIVSK: S&P Affirms 'B-' Issuer Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on the
Ukrainian City of Ivano-Frankivsk to positive from stable.  The
'B-' long-term issuer credit rating was affirmed.  At the same
time, the Ukraine national scale rating was raised to 'uaBBB' from
'uaBBB-'.

"The ratings on Ivano-Frankivsk reflect our view of its high
dependence on the policies of the sovereign, relatively low wealth
levels, low liquidity, as well as the risks related to government-
related entities' (GREs') typically poor financials.  These
weaknesses are offset by the city's low debt and very conservative
borrowing plans, moderate budgetary performance, and high degree
of economic diversification," S&P stated.

"In our view, Ivano-Frankivsk's financial flexibility is severely
constrained by central government's control of local and regional
governments' financial policies," said Standard & Poor's credit
analyst Karen Vartapetov.  "Despite the central government's
recent efforts to improve its intergovernmental fiscal policies,
we see systemic risk as a key factor undermining Ivano-Frankivsk's
credit profile."

The city's wealth levels are comparatively low, even by Ukrainian
standards.  However, the diversified nature of Ivano-Frankivsk's
economy has so far allowed it to withstand financial turmoil.
"With improved prospects for a nationwide recovery, we expect some
moderate economic growth in the city in 2011-2012," S&P said.

Strong operating subsidies and increasing tax revenues helped the
city slightly improve its budgetary performance in 2010 compared
with 2009.  "Despite the city's only moderate success at cost
containment measures, our base-case scenario assumes that
Ivano-Frankivsk will deliver moderate operating surpluses in 2011
and 2012, given our expectation of an economic revival," S&P
noted.

The sovereign's improved budgetary prospects resulted in somewhat
stronger capital grants, which under recovering real property
markets resulted in the expansion of Ivano-Frankivsk's 2010
investment program.  "We expect this trend to continue, with
capital expenditure as a proportion of total revenues
approaching 15% in the medium term.  This should, we believe,
translate into modest deficits after capital accounts of 2%-3% in
2011-2013," according to S&P.

After the timely repayment of its bond in February 2011,
Ivano-Frankivsk's direct debt was a mere 3% and currently consists
solely of intergovernmental obligations: a Treasury loan and a
central-government medium-term loan granted for the shortfall of
revenues against the Ministry of Finance projections.  "We
understand that, so far, the city has no plans for significant
direct borrowings in 2011.  However, we consider that given the
recent elections, which led to a new composition of the city
council, Ivano-Frankivsk still has to demonstrate the continuity
of prudent debt policies," S&P said.

Ivano-Frankivsk guaranteed a 17-year loan from the International
Bank for Reconstruction and Development (IBRD; AAA/Stable/A-1+) to
the municipal water and sewage utility.  It also cosigned an
EUR11.7 million loan from the European Bank for Reconstruction and
Development (AAA/Stable/A-1+) to some of its heating utilities,
with the first disbursement scheduled for 2011.  These loans, if
fully drawn, and the nonguaranteed debt of the utilities are
likely to increase the city's tax-supported debt, but tax-
supported debt should remain at less than 30% of consolidated
operating revenues until 2013.  The guarantees do not require the
city to step in immediately to provide coverage in the event of a
GRE's default.  However, they expose the city to foreign currency
risk in 2013, when the first principal payment on the IBRD loan is
due.

Although the size of the utilities' payables is moderate by
Ukrainian standards, the GREs' poor financials will likely
continue to put pressure on Ivano-Frankivsk's budget.  Owing to
the sharp rise in energy prices, the size of the GREs' payables --
primarily those of the heating utility -- have continued to
increase and by year-end 2010 accounted for 25% of total revenues
compared with 15% in 2008.  "We believe that the further growth of
payables might increase the pressure on the city, requiring it to
step in to support the GREs," S&P related.

"The outlook is positive because we believe Ivano-Frankivsk has
enhanced prospects for economic recovery, which is likely to
result in improved budgetary performance over the coming years,"
said Mr. Vartapetov.  "It also reflects our expectation that the
strong operating and capital support from the central budget will
continue."

"Our scenario for ratings upside assumes that the city will
continue what we regard as conservative debt polices and improve
its liquidity position.  The reduction of the utilities' payables,
due to their improved financial position, could also support
ratings upside," S&P noted.

The scenario for an outlook revision to stable implies continued
operating deficits in 2011-2012 and/or the rapid growth of the
GREs' payables far exceeding the current levels.  The accumulation
of short-term debt will also put pressure on the ratings.


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


ALITO COLOR: Sale to Previous Management Completed
--------------------------------------------------
Adam Hooker at PrintWeek, citing administrators, reports that a
sale of the business of Alito Color Group back to its previous
management has been completed.

PrintWeek relates that a brief statement from UHY Hacker Young
said the business had been sold "effective March 9", the date at
which previous manager David Collins began trading the company
under license through new business Argall Solutions.

Alito Color Group went into administration last month, around the
same time as partner company Flair Press, which traded as Alito
Web, went into administration with Zolfo Cooper, PrintWeek
recounts.  Zolfo Cooper closed the Northampton-based business upon
its appointment, while UHY continued to trade Alito Color Group
with a view to finding a buyer, PrintWeek discloses.  When a buyer
could not be found, the administrator opted to sell the business
back to management, PrintWeek notes.

Alito Color Group is an East London sheetfed printer.


BEMBRIDGE HARBOUR: Goes Into Administration
-------------------------------------------
Martin Neville at Isle of Wright County Press reports that the
company that runs Bembridge Harbour has gone into administration.

Isle of Wright County Press relates that both Bembridge Harbour
Improvement Company and Maritime and Leisure Investments Ltd.,
which own some of the buildings on the harbor and the water, are
now in the hands of administrators RSM Tenon.

It is understood both companies will continue to exist and be run
by the administrators as a going concern, Isle of Wright County
Press notes.


CONSOLIDATED MINERALS: Moody's Assigns B2 Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service has assigned Corporate Family and
Probability of Default Ratings of B2 to Consolidated Minerals Ltd,
a Jersey based manganese ore producer.  The agency has also
assigned a provisional (P) B2 rating to US$400 million of senior
secured notes to be issued.  The outlook on all ratings is stable.
This is the first time that Moody's has rated Consolidated
Minerals Ltd.

The assignment of a definitive rating to the new US$400 million
Senior Secured Fixed Rate Notes is subject to a review of the
associated documentation.

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

                        Ratings Rationale

The B2 corporate family rating is supported by Consolidated
Minerals' (i) access to high grade manganese reserves in
Australia, (ii) substantial life of mine in Ghana (over 15 years)
and track record of increasing the group's reserves life of its
Australian operations (average reserve life was increased to 5.5
years from 2.5 years a few years ago) albeit reserves life remains
very thin compared to peers across the mining sector, (iii)
relatively strong market positions in a consolidated manganese
industry, and (iv) conservative balance sheet structure following
the restructuring of the group's shareholder loan into a highly
subordinated instrument as part of the considered transaction.

On a more negative note, the rating is constrained by the group's
(i) exposure to a single commodity which has proven volatile over
the recent past, (ii) limited geographical and assets
diversification with all manganese ore being mined in Australia
and Ghana, (iii) relatively low grade manganese reserves in Ghana
partially outweighed by the high prices attracted from its EMM
customer base in China for this ore, (iv) average cash cost
structure due to high logistical and employee costs in Australia
and low grade reserves in Ghana as well as high stripping costs in
both countries, and (v) the group's concentrated ownership
structure with the company being ultimately controlled by an
individual and the high share of related party transactions in
overall group revenues.

The liquidity position of Consolidated Minerals is adequate. At
31st December 2010 the group had around US$98 million of cash on
balance sheet.  Moody's expects the issuer to retain around USD150
million of the proceeds from the issuance of the notes on balance
sheet (remaining US$250 million will be used to repay a portion of
the group's shareholder loans, which will then be accordingly
reduced to around US$950 million) further supporting the liquidity
position of the group.  The liquidity needs of the group mainly
consisting of capex and working capital investments are expected
to be funded from operating cash flows.  The current liquidity
position should also be sufficient to accommodate a maximum
dividend payout ratio of 50% of net income in line with the
restrictions under the US$400 million senior secured notes
indenture.

The stable outlook assigned to the ratings reflects Moody's
expectation that Consolidated Minerals will be able to capitalize
on supportive market conditions to fund investments in its mining
and logistical assets both in Australia and in Ghana to both
improve the group's cost structure and maintain sufficient
reserves life over time.  The stable outlook also reflects Moody's
expectation that the group will apply discretion in the
implementation of its investment strategy and will focus on
maintaining a solid financial structure and liquidity profile
through the cycle.

While positive rating pressure is unlikely in the short term,
Consolidated Minerals' ability to (i) further extend its reserve
life in Australia, (ii) to improve its cost structure, (iii) to
diversify its metals offering, (iv) to demonstrate a prolonged
track record of operating performance with reported Gross
debt/EBITDA below 2.5x and (v) to keep a conservative financial
and dividend policy with (CFO-dividends)/Debt ratio sustainably
above 10% could lead to positive rating pressure over time.

Failure to maintain at least 5 years of reserve life at
Consolidated Minerals' Australian operations during the lifetime
of the senior secured notes could lead to negative pressure on the
ratings.  A sharp deterioration in the operating cash flow
generation of the group leading to sustained negative free cash
flows and a (CFO-dividends)/Debt ratio significantly below 10%
could put negative pressure on the ratings.

The principal methodologies used in this rating were Global Mining
Industry published in May 2009, and Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Consolidated Minerals, headquartered in Jersey, is a leading
producer of manganese ore.  Mining operations are carried out from
Australia (Woodie Woodie mine) and from Ghana (GMC mine).  The
group also mines chromite ore at its Coobina mine in Australia.

Consolidated Minerals was formed through the acquisition of CMPL
in 2007/08 for a total consideration of US$1.1 billion and
subsequently combined with Ghana International Manganese
Corporation.  Consolidated Minerals is wholly owned by Gennady
Bogolyubov, an Ukrainian citizen.

In 2010, Consolidated Minerals reported sales of US$640 million
and an EBITDA excluding special items of US$248 million.


CONSOLIDATED MINERALS: S&P Assigns 'BB-' Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB-'
long-term corporate credit rating to Jersey-incorporated, leading
manganese ore producer Consolidated Minerals Ltd. (Jersey)
(ConsMin).  The outlook is stable.

"At the same time, we assigned a 'BB-' issue rating to the
proposed US$400 million senior secured notes (the proposed notes)
to be issued by ConsMin.  The recovery rating on the proposed
notes is '4', indicating our expectation of average (30%-50%)
recovery prospects in the event of a payment default," S&P stated.

"The ratings on ConsMin reflect our view of the company's weak
business risk profile combined with an aggressive financial risk
profile," said Standard & Poor's credit analyst Paul Watters.
"ConsMin's business risk profile reflects our opinion of the high
volatility in the manganese industry that is closely linked to
steel production; the company's short track record and relatively
high cost position in Australia; and political risk in Ghana,
where some of the ore is mined.  The ratings are also constrained
by the company's ownership structure and significant related-party
transactions."

"These constraints are tempered by our view that ConsMin has
adequate liquidity, which, when combined with a moderate financial
policy and limited leverage, should provide some financial
flexibility after the proposed refinancing to cushion the inherent
volatility in the manganese mining industry," S&P said

"In addition, we consider that ConsMin is well-placed to maintain
its market position in the steel production supply chain, and that
it should generate satisfactory free operating cash flow over the
next couple of years as long as the global economy, and
particularly China, maintains a positive growth trajectory," S&P
related.

S&P continued, "We recognize that ConMin's mining cycle is likely
to create some volatility in performance, particularly in 2012.
The long-term rating therefore assumes that adjusted total debt to
EBITDA does not rise above an average 2.0x-2.5x (without netting
off surplus cash), and that FFO to adjusted total debt does
not fall below a range of 25%-30% over the next couple of years."

"A significant weakness from our perspective is the level of
related-party transactions, amounting to about 35% of total sales
in 2009-2010.  Of these transactions, we consider the one
involving U.S.-registered trading company Chemstar Products LLC
(not rated), which acts as ConsMin's sole conduit for manganese
ore into Ukraine, as the most important (about 25% of sales).  A
further weakness is the lack of visibility that we have regarding
the financial strength of the shareholder's private investment
company Grizal Enterprises Ltd. (not rated), which we think would
likely influence ConsMin's financial policy over time," S&P
related.

Although not envisaged, the rating could come under pressure if
there were evidence that the remaining shareholder loan was not
permanent; or if there were a sustained fall in the benchmark
manganese price below $5 per dry metric tonne unit, most likely
resulting from an extended downturn in steel production, or in the
longer term, an increased supply of manganese from new low-cost
suppliers.  The rating does not factor in any material debt-
financed acquisitions.


CORSAIR: Fitch Affirms Rating on Series 326 Notes at 'CCsf'
-----------------------------------------------------------
Fitch Ratings has affirmed the ratings of Corsair (Jersey)
Limited's JPY4 billion (as of April 11, 2011) Series 326 credit-
linked notes due September 2014 at 'CCsf' with a Recovery Rating
of 'RR6'.

The transaction is a managed synthetic corporate CDO, referencing
a portfolio of primarily investment-grade corporate obligations.

To date, seven credit events have occurred in the reference
portfolio and Fitch has received all of the valuation notices on
these credit events.  While some improvement of the average credit
quality has been observed in the reference portfolio over the last
12 months, Fitch considers that very high levels of credit risk
remain due to a few 'CCC'-category reference entities and limited
remaining credit enhancement.


INDUS ECLIPSE: Moody's Cuts Rating on Class B Notes to 'B3 (sf)'
----------------------------------------------------------------
Moody's Investors Service has downgraded the Class A Notes and
Class B Notes issued by Indus (Eclipse 2007-1) plc (amounts
reflect initial outstandings):

   -- GBP729M Class A Notes, Downgraded to Baa3 (sf); previously
      on Jun 24, 2009 Downgraded to Baa1 (sf)

   -- GBP48M Class B Notes, Downgraded to B3 (sf); previously on
      Jun 24, 2009 Downgraded to B2 (sf)

The rating of the Class X Notes was placed on review for possible
downgrade on March 2, 2011, following Moody's new operational risk
criteria.  Moody's will complete the review of the rating on the
Class X Notes by September 2011, as required by European
regulations.  Moody's does not rate the Class C, Class D and Class
E Notes.

                          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 June 2009.

The rating downgrade of the Class A and Class B Notes is due to
adverse loan performance and a significant increase in the
assessed refinancing risk for the loans in light of high leverage
levels at maturity for most loans based on Moody's market values.
The weighted average Moody's loan to value (LTV) at maturity is
117%. Five out of 17 loans (42% of the current pool balance) are
currently in special servicing, of which two loans (36% of the
current pool balance) have breached their LTV default covenants.
In total, seven loans (59% of the current pool) are on the
servicer's watchlist for various reasons.  Six loans (48% of the
current pool) including the largest loan (Adelphi House Loan, 27%
of the current pool) have a maturity date in 2011, out of which
two loans (6% of the current pool) with maturity date in Q1 2011
have defaulted at maturity.  Moody's considered in its re-
assessment of the refinancing risk the subdued lending market,
especially for non-prime properties and a slower than previously
expected recovery of the lending market, as described in Moody's
Special Report "EMEA CMBS: 2011 Central Scenarios".

The current ratings are sensitive to the total amount of loans
that will not be repaid at the respective maturity dates in 2011.
Moody's assumes high default probabilities at maturity for those
loans due in 2011.  At the same time, the now current ratings for
the Class A and Class B Notes incorporate some benefit for an
expected increase in credit enhancement as all proceeds are
allocated fully sequentially to the Notes because the sequential
payment trigger is hit.  About half of the total loan balance due
in 2011 is contributed by the largest loan in the pool, for which
there is an ongoing dialogue between the borrower and the servicer
regarding a prepayment in advance of the maturity date in October
2011.

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 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

As of the October 2010 interest payment date, the transaction's
total pool balance was GBP804.7 million, down by 10% since closing
due to repayments and prepayments.  Two out of originally 17 loans
have prepaid and repaid.

The Investor Report and cash flow figures based on January 2011
interest payment date have not been provided to Moody's at the
date this rating action was concluded.

The largest loan is the Adelphi House Loan (27% of the pool).  The
loan is secured by a prime office property in London.  About half
of the rental income is contributed by the main tenant Secretary
of State.  The property value has increased by about 4% based on a
December 2010 re-valuation compared to the previous valuation.
The loan remains in special servicing given the breach of the LTV
default covenant.  According to a special notice, discussions
regarding a prepayment of the loan ahead of its maturity in
October 2011 are ongoing.  Moody's is expecting high losses for
this loan given Moody's whole loan LTV of 119%.

The second largest loan (Criterion Loan; 15% of the pool) is
secured by a prime office property directly at Piccadilly Circus,
London.  Cash flows for this loan are topped-up by sponsor
contributions covering rental shortfalls of a vacated unit.  The
loan is on the servicer's watchlist in order to monitor sponsor
contributions are met.  Moody's expects a whole loan LTV of 101%
at maturity in July 2015 and substantial losses.

The G-res 1 Portfolio Loan (16%; residential properties across the
UK) and the NOS2&NOS3 Loan (9%; a mixed portfolio across the UK)
are performing.  Moody's LTVs at maturity are 85% for the G-res 1
Portfolio Loan maturing in January 2014 and 103% for the NOS2&NOS3
Loan maturing in January 2017.

The fifth largest loan (Greater London Offices; 9%) is secured by
an office building at the fringe of London city.  The loan has
breached the LTV default covenant and is currently in special
servicing.  Excess cash is trapped in rent accounts.  The loan is
subject to significant lease rollover risk in 2012.  Moody's
expects very high losses for this loan given its high leverage of
about 128% based on Moody's value assessment at maturity in
October 2011.

The remaining 12 loans contribute between 4.4% and 0.5% to the
current pool balance.  The Agora Max Loan (4.4% of the pool) is in
special servicing and has failed to repay at maturity in March
2011. Interest is currently funded on a daily basis and
discussions with respect to a standstill agreement are ongoing.
The Workspace Portfolio Loan (3.3%) is on the servicer's watchlist
due to the breach of the cash trap covenant of 1.30x.  The Grafton
Estate Portfolio Loan (2.5%) is on the servicer's watchlist due to
the breach of the cash trap based on the projected ICR.  The
Gullwing Fund I Loan (1.6%) has been placed into special servicing
because it has defaulted at maturity in January 2011. An LPA
receiver is appointed.  The St Georg Loan (0.8%) is on the
watchlist as it is in breach of the LTV and ICR covenant.  The
Apex Loan (0.5%) is in special servicing.  Shortfalls are
outstanding for this loan and the LTV covenant is breached.
Moody's considers the quality of most properties securing the
smaller loans to be non-prime and expects very high losses for
most of those loans.

Portfolio Loss Exposure: Moody's expects a high amount of losses
on the securitized total portfolio, stemming mainly from the
performance, the leverage levels and the refinancing profile of
the securitized portfolio.  The current subordination levels of
20.2% for the Class A and 14.3% for the Class B provide protection
against these expected losses.  However, the likelihood of higher
than expected losses on the portfolio has increased substantially,
which results in today's rating action.

                        Rating Methodology

The principal methodology used in this rating was "Update on
Moody's Real Estate Analysis for CMBS Transaction in EMEA"
published in June 2005.

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 does not have access
to the underlying portfolio information relating to the non
recoverable costs.

The updated assessment is a result of Moody's on-going
surveillance of commercial mortgage backed securities (CMBS)
transactions.  Moody's prior review is summarized in a Press
Release dated June 24, 2009.  The last Performance Overview for
this transaction was published on Jan. 13, 2011.


SMITHS OF PETERHEAD: Sold to Touch Interactive; 20 Jobs Axed
------------------------------------------------------------
Jamie Buchan at The Press and Journal reports that Smiths of
Peterhead, which has been in a battle for survival since it went
into administration earlier this year, has been sold after days of
negotiations.

According to The Press and Journal, the firm has been forced to
shed 20 jobs at its Boddam plant, which will be closed.

The new business will continue with the remaining workforce of 17
at Smiths' weaving factory at Milladen, near Mintlaw, The Press
and Journal says.  The firm was left facing an uncertain future
after building up debts of nearly GBP120,000, The Press and
Journal discloses.  A winding-up order was issued by Peterhead
Sheriff Court after a legal challenge by HM Revenue and Customs
over unpaid taxes, according to The Press and Journal.  The
company managed to avoid liquidation by calling in joint
administrators Paul Dounis and Ken Pattullo, of insolvency
specialist Begbies Traynor, who pledged to try to keep the firm
afloat.

The Press and Journal relates that Mr. Dounis confirmed the
company had been sold to new business, Touch Interactive, which is
owned by Christian Rodland, the son of former Smiths owner Marian
Shildrick.

The sale is expected to recover more than GBP400,000 for creditors
of the firm, The Press and Journal states.

Mr. Dounis, as cited by The Press and Journal, said the spinning
side of the business at Mintlaw had been sold, but the deal did
not include the weaving plant at Boddam.

The administrators will retain ownership of the factory at
Milladen and lease it to the owners for two years, The Press and
Journal discloses.  There will be an option to purchase the
freehold, according to the report.

Smiths of Peterhead makes woolen fabric and knitwear yarns with
its client list, including high end fashion houses such as Prada,
Gucci and Ralph Lauren.  The business was founded in by Thomas and
Joshua Smith and traded as Thomas Smith & Co until 2005.


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


* BOOK REVIEW: Voluntary Assignments for the Benefit of Creditors
-----------------------------------------------------------------
Author: James Avery-Webb
Publisher: Beard Books
Softcover: 788 pages for both volumes
Price: US$34.95 each volume; US$49.95 set
Review by Henry Berry

Voluntary Assignments for the Benefit of Creditors is a 1999
update of the classic nineteenth-century work on the important
financial and business instrument known as "voluntary
assignments."  The author of the original edition was Alexander M.
Burrill, a noted legal scholar who also wrote a law dictionary and
several other texts.  Voluntary Assignments for the Benefit of
Creditors is now in its sixth edition, with Avery-Webb authoring
the update.

As defined by the authors, voluntary assignments for the benefit
of creditors are "transfers, without compulsion of law, by
debtors, of some or all of their property to an assignee or
assignees, in trust to apply the same, or the proceeds thereof, to
the payment of some or all of their debts, and to return the
surplus, if any, to the owner."  Voluntary assignments offer
businesspersons from small business owners to corporate executives
great flexibility in raising capital.  Considering the many ways
that businesses can enter into voluntary assignments, the
different ways of valuing properties "assigned," and the changing
value of these properties over time, the law governing voluntary
assignment is complex.

The authors tackle the subject of voluntary assignments in all its
breadth and depth.

During the 1800s, when Burrill's work first came out, there were
innumerable cases dealing with voluntary assignments.  The case
law of the 1800s remains authoritative, informative, and
instructive today.

To render it comprehensible, the authors break down the subject
matter into its many facets, thereby allowing lawyers and others
to quickly reference areas of interest.  These cases are listed
alphabetically, and comprise more than fifty pages in a front
section titled "Table of Cases."  Cases are also referred to in
the text proper and in copious footnotes.

The format of the text, including the footnotes, is the standard
followed by many legal texts and handbooks, notably the multi-
volume American Jurisprudence.  The sections are numbered
consecutively in forty-five chapters.  There are 458 sections in
all.  The sections are relatively short, even though the subject
of voluntary assignments is complex and there is bountiful case
law.

Readers can peruse general topics such as execution of the
assignment, construction of assignments, sale of the assigned
property, and the rights, duties, and powers of the assignee.
More specific, detailed topics can be accessed using the index.
There are two appendices.  The first contains synopses of the
statutes of every state and territory on voluntary assignments.
The second appendix contains nearly thirty standard forms that can
be used for various aspects of assignments.

Although voluminous and rigorous in its commentary and legal
citations, the two-volume Voluntary Assignments for the Benefit of
Creditors is neither dense nor ungainly.

Like a good lawyer breaking down a case so it can be comprehended
by a jury of average persons, so does Burrill and Avery-Webb deal
with the topic of voluntary assignments.

Born in 1868 in Tennessee, James Avery-Webb (d. 1953) had a career
as a prominent attorney in New York City.


                            *********

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.
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Editors.

Copyright 2011.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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                 * * * End of Transmission * * *