TCREUR_Public/110622.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, June 22, 2011, Vol. 12, No. 122

                            Headlines



A R M E N I A

WIENEBERGER AG: Moody's Assigns '(P)Ba1' rating to EUR100MM Notes


B E L A R U S

BTA BELARUS: Fitch Affirms Issuer Default Rating at 'B-'


C Z E C H  R E P U B L I C

SAZKA AS: Pays Government Fees; Has License Cancellation Withdrawn


D E N M A R K

AMAGERBANKEN A/S: BankNordik Raises Capital After Bank Acquisition
* DENMARK: Banks May Use Contingent Bonds to Prevent Insolvency


G E R M A N Y

CITY BKK: Files for Bankruptcy Amid Indebtedness, Insolvency


G R E E C E

* GREECE: Decision on Bailout Delayed Until July


I R E L A N D

BANK OF IRELAND: DBRS Cuts Subordinated Debt Ratings to 'C'
IRISH LIFE: DBRS Downgrades Dated Subordinated Debt Rating to 'C'
KOKS FINANCE: S&P Rates US$350MM Loan Participation Notes at 'B-'
* IRELAND: Business Scams Add to Struggling Firms' Woes


I T A L Y

BANCA ITALEASE: Fitch Affirms 'CCC' Rating on Trust Securities


K A Z A K H S T A N

BTA BANK: Seeks Prison Terms for Men Linked in Ex-Chair Fraud


L U X E M B O U R G

BNP PARIBAS: Fitch Upgrades Individual Rating to 'C'


N E T H E R L A N D S

JUBILEE CDO: Fitch Says Ratings Unaffected by Contract Changes


R U S S I A

ALLIANCE OIL: Fitch Assigns 'B' Rating to RUB5-BB Domestic Bonds
ROSEVROBANK: Fitch Affirms Foreign Currency IDR at 'B+'
* BASHKORTOSAN REPUBLIC: Moody's Changes 'Ba1' Outlook to Positive
* OBLAST OF OMSK: Moody's Upgrades Issuer Ratings to 'Ba2'


S P A I N

TDA FTPYME PASTOR: DBRS Confirms EUR127-Mil. Series B Notes at 'B'
TDA SA: S&P Assigns 'B (sf)' Rating on Two Classes of Notes


S W E D E N

SAAB AUTOMOBILE: Production to Remain Stalled for Two Weeks


U N I T E D   K I N G D O M

EMI GROUP: Launches Strategic Review: Mulls Sale, Restructuring
HEALTHCARE LOCUMS: In Dispute with Shareholders Over Rescue Plans
ROYAL MAIL: Is 'Balance Sheet' Insolvent, Greene Says
SOUTHERN CROSS: Gets Four Months of Breathing Space
VBA LTD: Former Senior Employee Still Waits for Salary Owed

* Insolvency Service Proposes New Legislation on Pre-Pack Sales


                            *********


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A R M E N I A
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WIENEBERGER AG: Moody's Assigns '(P)Ba1' rating to EUR100MM Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba1 rating
to the EUR100 million senior unsecured notes to be issued by
Wienerberger AG in line with the Ba1 Corporate Family Rating,
which remains unchanged. The outlook on the ratings is negative.

Ratings Rationale

The (P)Ba1 instrument rating is in line with Moody's Loss Given
Default Methodology and reflects the pari passu ranking of the new
senior unsecured notes with the group's existing senior unsecured
bonds and its bank debt. As the group is financed primarily
through senior unsecured borrowings raised by Wienerberger AG
there are no material amounts of secured borrowings in the capital
structure. In addition, the group's capital structure contains a
EUR500 million hybrid bond, rated Ba3, which is subordinated to
the group's unsecured debt.

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.

Wienerberger's Ba1 Corporate Family Rating (CFR) continues to
benefit from the group's strong market position in the global
brick and roof tile markets with high market shares in North
America (co-leader in facing bricks), and in Europe (number 1 in
facing bricks and clay roof tiles), as well as the well-managed
capital structure through the downturn between 2008 and 2010 which
involved two rights issues, the cancellation of dividend payments
and the maintenance of a sound liquidity profile.

At the same time, the highly cyclical business of primarily
supplying the residential construction markets and the company's
relatively small size compared to other companies in the building
materials industry has led to volatile operating results and a
capital structure, that positions the company weakly in the
current rating category, with RCF/net debt of 13.8% and
debt/EBITDA of 4.7x per LTM March 2011.

Despite the ongoing fragility in most of the company's markets,
Wienerberger appears to be slowly improving its profitability
again, driven by implemented cost cuts and capacity adjustments.
However, the company is still far away from its historical
profitability levels of operating margin in the low teens prior to
2008.

The current rating positioning anticipates that Wienerberger can
progressively strengthen its operating margin in the subsequent
quarters. In addition we expect RCF/net debt improving towards 20%
in 2011, which is Moody's threshold outlined for Wienerberger to
retain the Ba1 rating.

Any deviation from the expected recovery in performance in 2011
could lead to downward rating pressure. Wienerberger's rating
might be downgraded if the company is not able to generate
positive free cash flows in 2011 and to consequently reduce its
indebtedness, which would lead to an improvement of RCF/net debt
towards the 20s over the next twelve months.

Given the current rating positioning of Wienerberger and the still
fragile market environment, an upgrade in the short to
intermediate term is unlikely. A rating upgrade would require an
extended period of applying a major share of cash flow to debt
reduction with ongoing improvements in operating profits and
operating cash flows, so that the RCF/net debt ratio would rise
comfortably above 20% and FCF/debt towards the mid single digit
range on a sustained basis.

At March 31, 2011, the group had EUR289 million cash on balance
sheet and undrawn committed long-term credit lines of EUR340
million. These liquidity sources combined with expected operating
cash flow generation should be fully sufficient to cover the
company's major uses over the next 12 months. These consist of
day-to-day needs estimated as 3% of revenues, working capital,
capital expenditures, short-term debt maturities of EUR134 million
and the dividend payment.

The principal methodology used in rating Wienerberger AG was the
Global Building Materials Industry Methodology, published July
2009. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA, published June 2009.

Headquartered in Vienna, Austria, Wienerberger AG is the world's
largest brick manufacturer and Europe's largest producer of clay
roof tiles. The group produces bricks, clay roof tiles and pavers
in 245 plants and operates in 27 countries worldwide and five
export markets. The company's main markets are North America (8%
of 2010 sales), Germany (15%), Benelux (23%) France (8%) and
Eastern Europe (25%). The group generated revenues of EUR 1.7
billion in fiscal year 2010.


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B E L A R U S
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BTA BELARUS: Fitch Affirms Issuer Default Rating at 'B-'
--------------------------------------------------------
Fitch Ratings has affirmed BTA Belarus's Long-term foreign
currency Issuer Default Rating at 'B-' with a Stable Outlook.

BTAB's Long-term IDR continues to reflect potential support from
its majority shareholder, BTA Kazakhstan (BTA, 'B-'/Stable). In
Fitch's view, BTA would likely seek to support BTAB, in case of
need, given the full ownership of the subsidiary, the track record
of capital support even when BTA itself was in default, the cross-
default clause in BTA's own debt issuance and BTAB's small size.

However, Fitch notes that BTA's ability to provide support could
be limited, as reflected by its own rating. Furthermore, although
BTA regards BTAB as a core subsidiary, there is little strategic
fit between the two businesses and BTAB's narrow franchise makes a
negligible contribution to BTA's results.

As a result of the recent devaluation of the Belarussian ruble,
BTAB has breached the minimum regulatory capital requirement for a
bank which is attracting retail deposits of EUR25 million; retail
deposits constitute a sizeable portion of BTAB's liabilities.
Fitch's base case expectation is that BTAB will benefit from some
form of regulatory forebearance from the National Bank of Belarus
and/or receive new capital from BTA, so that it is able to
continue to hold retail deposits.

However, if BTAB does not benefit from regulatory forebearance or
a capital injection, the ratings could come under downward
pressure. Fitch also notes that in the absence of external
support, the bank could face considerable challenges in repaying
its highly dollarized liabilities, as access to foreign currency
(FC) liquidity remains constrained, and BTAB's customers who
borrowed sizably in FC and have virtually no access to FC revenues
have questionable ability to service their debts under the initial
schedules.

The rating actions are:

BTA Belarus

   -- Long-term foreign currency IDR: affirmed at 'B-'; Stable
      Outlook

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

   -- Support Rating: affirmed at '5'

   -- Individual Rating: affirmed at 'E'


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C Z E C H  R E P U B L I C
==========================


SAZKA AS: Pays Government Fees; Has License Cancellation Withdrawn
------------------------------------------------------------------
Reuters reports that the Czech Finance Ministry said it will not
revoke Sazka's licenses and has stopped all administrative
proceedings against the indebted lottery firm after it paid
delayed fees to the state.

In March this year, the Finance Ministry started proceedings
against Sazka and suspended one of the firm's licenses after it
failed to make a jackpot payout.

As reported by the Troubled Company Reporter-Europe, CTK said
Sazka's bankruptcy took effect on May 30, 2011.  The decision on
Sazka's bankruptcy was made at a meeting of its creditors on
May 27.  Under bankruptcy, the Sazka board of directors loses its
right to handle the company's assets, which will now be
administered by an insolvency administrator, CTK noted.  Sazka's
management wants to turn to court to defend itself against the
decision on bankruptcy, CTK said.

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


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D E N M A R K
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AMAGERBANKEN A/S: BankNordik Raises Capital After Bank Acquisition
------------------------------------------------------------------
Frances Schwartzkopff at Bloomberg News reports that BankNordik
P/F said it raised DKK600 million (US$114 million) in an effort to
strengthen its capital base following its acquisition of the
healthy parts of Amagerbanken A/S.

According to Bloomberg, BankNordik, based in the Faroese capital
of Torshavn, said in a statement to the stock exchange on Sunday
that it sold DKK180 million of hybrid core capital and DKK420
million in subordinated loan capital.

BankNordik agreed to purchase the healthy parts of Amagerbanken
from the Danish state last month for DKK350 million, Bloomberg
recounts.

                       About Amagerbanken

Amagerbanken, the 8th largest bank in Denmark, was hit in 2008 by
the financial crisis and needed to refinance it on the market, in
order to balance necessary asset write-downs.  After continuous
unsuccessful efforts to obtain new financing or to find other
solutions, Amagerbanken was declared bankrupt on February 7, 2011.
Previously, February 6, 2011, Amagerbanken had entered into a
conditional transfer agreement with the Danish publicly owned
Financial Stability Company (FSC), as part of the Danish bank
wind-up scheme.


* DENMARK: Banks May Use Contingent Bonds to Prevent Insolvency
---------------------------------------------------------------
Tasneem Brogger and Adam Ewing at Bloomberg News report that
Denmark's central bank is open to letting the Nordic country's
biggest lenders resort to contingent convertible bonds to help
them meet extra capital requirements designed to prevent
insolvency.

"It's reasonable to consider these securities as a way to fulfill
higher capital requirements for systemically significant banks,"
Bloomberg quotes central bank Governor Nils Bernstein, as saying
in an interview in Copenhagen on Tuesday.

Lars Frisell at Sweden's bank regulator and a member of the Basel
committee said last month that the Basel Committee on Banking
Supervision may let lenders use so-called CoCos, which convert
into equity at a given trigger, to fulfill tougher capital rules,
Bloomberg recounts.

"The risk that using CoCos might result in unintended
consequences, that's something regulators will have to address
when the time comes," Mr. Bernstein, as cited by Bloomberg, said.
"But we're open to the possibility of having Danish banks use
CoCos."

Bloomberg notes that two people familiar with the talks said this
month, the Basel committee may require the biggest banks to hold
as much as 3.5 percentage points in extra capital if they grow.
According to Bloomberg, one of the people, said members of the
Basel group are unlikely to agree at this week's meeting whether
the surcharge should be made up only of common equity or whether
part of it could contain CoCos.

"CoCos are a good tool for banks to have," Andreas Hakansson, an
analyst at Exane BNP Paribas in Stockholm, as cited by Bloomberg,
said by phone on Tuesday.  "The most important thing is to have a
proper, strong capital base and using these bonds could be a nice
way for lenders to top off their capital.  Even if a share price
falls when they are converted, at least the bank will have proper
solvency."


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


CITY BKK: Files for Bankruptcy Amid Indebtedness, Insolvency
------------------------------------------------------------
Press TV reports that Germany's CITY BKK, a large health insurance
fund, became the first of its kind to declare bankruptcy and will
completely close down by the end of June.

Global Money Management says the decision was made by the Federal
Insurance Office (BVA) last Wednesday on the grounds of
indebtedness and insolvency, after attempts at rehabilitation.
The fund's Press Officer Torsten Nowak refused to disclose the
deficit size.

Press TV says the bankruptcy is now feared to leave especially the
elderly and sick without health insurance.

City BKK insures 170,000 people.  In recent years, it accumulated
EUR50 million of debt and was forced to claim additional fees,
Press TV says.


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G R E E C E
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* GREECE: Decision on Bailout Delayed Until July
------------------------------------------------
Stephen Castle and Niki Kitsantonis at New York Times report that
Europe's finance ministers unexpectedly put off approval early
Monday of the next installment of aid to debt-laden Greece,
delaying the decision until July and demanding that the Greek
Parliament first approve spending cuts and financial reforms that
include a large-scale privatization program.

After nearly seven hours of talks in Luxembourg, ministers
announced a holding action that reflected their struggle over how
to avert a potentially disastrous default by Greece, NYT relates.
Athens needs the next payout of EUR12 billion from its existing
EUR110 billion bailout package by mid-July in order to remain
solvent, NY notes.


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I R E L A N D
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BANK OF IRELAND: DBRS Cuts Subordinated Debt Ratings to 'C'
-----------------------------------------------------------
DBRS Inc. has downgraded the ratings of all dated subordinated
debt issued by The Governor and Company of the Bank of Ireland to
"C" from CCC. Furthermore, DBRS has downgraded Bank of Ireland's
Primary Capital Notes to "C" from CCC (low), as well as the
Perpetual Preferred Securities of various related entities to "C"
from CC. The downgrade follows the announcement by the Bank of
Ireland that it has commenced an offer to exchange the
aforementioned securities for cash or equity and a solicitation of
consents in relation to the securities. Moreover, DBRS expects to
downgrade the securities discussed above to "D" at completion of
the buyback; as such, the securities remain Under Review with
Negative Implications, where they were placed on December 3, 2010.

In DBRS's view, the exchange offer, when completed, is tantamount
to a default as defined by DBRS policy. DBRS views the proposed
exchange offer as coercive as the offer affords investors in these
instruments limited options. Should investors in these instruments
reject the proposed offer, at a 80-90% discount if accepting the
cash option, or a 60-80% discount if accepting the equity option,
on the tendered securities, they risk receiving substantially less
if the proposed consent amendments are ratified. Remaining
investors in these instruments would then receive 0.001% of par
value, should the consent to allow the "clean-up" of residual
notes be accepted by tendering
investors.


IRISH LIFE: DBRS Downgrades Dated Subordinated Debt Rating to 'C'
-----------------------------------------------------------------
DBRS Inc. has downgraded the Dated Subordinated Debt rating of
Irish Life & Permanent plc to "C" from CCC. The downgrade follows
the announcement by IL&P that it has commenced an offer to
purchase the aforementioned securities for cash and a solicitation
of consents in relation to the securities. Moreover, DBRS expects
to downgrade the Dated Subordinated Debt to "D" at completion of
the buyback; as such, the securities remain Under Review with
Negative Implications, where they were placed on December 3, 2010.

In DBRS's view, the purchase offer, when completed, is tantamount
to a default as defined by DBRS policy.  DBRS views the proposed
purchase offer as coercive as the offer affords bondholders
limited options. Should the bondholder reject the proposed offer,
at an 80% discount on the majority of the tendered securities,
they risk receiving substantially less if the proposed consent
amendments are ratified. Remaining bondholders would then receive
0.001% of par value, should the consent to allow the "clean-up" of
residual notes be accepted by tendering bondholders.


KOKS FINANCE: S&P Rates US$350MM Loan Participation Notes at 'B-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' debt rating
to the proposed approximately US$350 million loan participation
notes due 2016 to be issued by orphan Irish special-purpose
vehicle KOKS Finance Ltd. "The recovery rating on the notes is
'5', indicating our view of modest (10%-30%) recovery for
creditors in the event of a payment default," S&P said.

"We understand that the notes are for the sole purpose of
financing a loan to OAO Koks (B/Stable/--), a Russian producer of
coking coal, coke, iron ore, and pig iron. The exact amount of the
bond issue is subject to negotiation. The debt rating is one notch
below the long-term corporate credit rating on OAO Koks," S&P
related.

The issue and recovery ratings are subject to review of final
documentation.

The 'B' corporate credit rating on OAO Koks is unaffected.

The recovery rating on the notes is supported by OAO Koks'
significant asset valuation. The recovery rating is constrained by
the unsecured nature of the notes, the existence of significant
secured debt ranking ahead of the notes, the loan's relatively
weak security package that includes very significant permitted
debt and permitted lien baskets, and Russia's relatively
creditor-unfriendly insolvency regime.

"We understand that the bond issue will help the group to repay
about EUR380 million of secured debt. The notes will benefit from
all its rights to principal, interest, and other amounts payable
to the issuer by the borrower under the loan agreement or by the
guarantors under the guarantees," S&P said.

The loan to OAO Koks will be initially unconditionally and
irrevocably guaranteed by OAO Kombinat KMAruda, which operates an
iron ore mine and an iron ore processing plant. On, or prior to,
the 90th day after the issue date of the notes, the loan will be
additionally guaranteed by OAO Tulachermet, which operates a pig
iron production facility in Tula and is one of the leading Russian
metallurgical companies. If the additional guarantee is not
approved by either the minority shareholders or the general
shareholders' meeting of OAO Tulachermet, we understand the
noteholders can put the notes. "We also understand that the two
guarantors together account for 44% of the group's assets and 40%
of its EBITDA. The borrower of the loan (OAO Koks) accounts for a
further 34% of assets and 33% of the EBITDA of the group," S&P
said.

                         Recovery Analysis

The documentation of the loan contains very significant debt
baskets. Specifically, it contains a limitation on indebtedness
covenant that is subject to an incurrence-based consolidated
leverage ratio of 3.5x, except for permitted indebtedness, which
includes, among other things, credit facilities of up to US$50
million and additional indebtedness not exceeding US$100 million.
The documentation also allows liens to be raised in respect of,
among other things, debt permitted under the incurrence of
indebtedness provided that total secured debt shall not exceed 15%
of the group's total assets. It also allows for liens to be raised
in respect of working capital facilities not exceeding US$50
million.

"To establish recoveries for OAO Koks, we simulate a payment
default. Our simulated default scenario contemplates a default in
2013, mainly owing to volatility in the coal and coke industry,
combined with OAO Koks' inability to refinance its due debt. At
the point of default, we calculate EBITDA to be about EUR188
million," S&P said.

"We value the company on a going-concern basis. This is because we
believe that its good position in the coal and coke markets means
it would most likely be reorganized in the event of a default. We
value the business using discrete asset valuation and EBITDA
multiple approaches, taking into account the volatility of the
industry and the location of the assets. Recovery prospects
are underpinned by OAO Koks' material tangible asset value.
Assuming a 4x multiple of EBITDA at default, we calculate a gross
enterprise value of about US$750 million," S&P said.

"After deducting enforcement costs, secured loan facilities, and
prepetition interest, we would contemplate coverage of the
approximately US$350 million proposed notes and of the existing
Russian ruble RUB5.2 billion senior unsecured bonds in the 10%-30%
range, equivalent to a recovery rating of '5'," S&P added.

Ratings List

New Rating

KOKS Finance Ltd.
US$350 mil. loan participation notes
due 2016                              B-
  Recovery Rating                      5


* IRELAND: Business Scams Add to Struggling Firms' Woes
-------------------------------------------------------
According to Irish Examiner, a survey has found that up to two
thirds of companies have been victims of business scams in the
last 12 months, adding further to their struggle for survival.

Irish Examiner relates that in response to its findings, the Irish
Small & Medium Enterprises Association has warned all businesses
to be extra vigilant over the summer holiday period as "fraudsters
target the business community who are particularly vulnerable."

Irish Examiner notes that the association said fraudsters were
"costing companies thousands."

It highlighted bogus overseas offers and international business
directories as areas being exploited by the scammers, Irish
Examiner discloses.  ISME, as cited by Irish Examiner, said
companies are being ripped off for thousands of euro, putting
further pressure on businesses already suffering from the economic
downturn.


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I T A L Y
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BANCA ITALEASE: Fitch Affirms 'CCC' Rating on Trust Securities
---------------------------------------------------------------
Fitch Ratings has downgraded Italy-based Banco Popolare's Long-
term Issuer Default Rating to 'BBB+' from 'A-'. The Outlook on the
Long-term IDR is Stable. At the same time, the agency has affirmed
the bank's Short-term IDR at 'F2' and Individual Rating at 'C'.

The downgrade of the bank's Long-term IDR reflects Fitch's view
that it will be difficult for the bank to improve profitability in
a still unfavorable market and the bank's high level of impaired
loans, although the agency acknowledges management's progress in
working out some of the largest impaired exposures. The ratings
also reflect BP's adequate funding, its recently strengthened
capital along with existing plans to further support
capitalization and its reinforced management and organizational
structure.

In 2010, BP posted an operating loss, excluding non-recurring
items. Decreasing interest revenue, still high loan impairment
charges and negative trading results resulted in an operating
loss. The amortization of purchase-related intangibles in 2010,
equal to EUR270 million, had a significant negative impact on
operating profit. Improvements in net interest revenue will depend
on interest rates increasing. Fitch expects profitability in 2011
to remain moderate, which was confirmed by the bank's results in
Q111.

At end-Q111, BP's gross impaired loans totaled nearly EUR11
billion, a decline of 8% from a year earlier but still equal to a
high 11% of gross loans. Fitch considers the bank's high level of
net impaired loans, equal to over 50% of equity, to be a key
weakness. However, management has made progress in working out its
largest impaired exposures thanks to their strong collateral.

BP's healthy retail franchise provides access to customer funding.
At the same time, BP benefits from robust and adequately
diversified access to capital markets. The bank issued debt in the
wholesale market in 2011 in the form of senior unsecured and
covered bonds and in May 2011 launched an offer to exchange
outstanding lower Tier 2 debt with newly issued lower Tier 2 debt.
Liquidity, which Fitch considers adequate, was underpinned at end-
May 2011 by EUR11.5 billion ECB eligible assets, predominantly
unencumbered.

In early 2011, BP completed a EUR2 billion capital increase, which
was partly utilized to reimburse EUR1.45 billion of hybrid capital
instruments acquired by the Italian state in 2009. The net effect
of this transaction was positive, and the Fitch core capital ratio
improved to 7% at end-March 2011 from 4.98% at end-2010, which the
agency considers only acceptable given the bank's weak asset
quality. The current ratings and Stable Outlook factor in
management's plans to sustain capital ratios over the short to
medium term, including through the disposals of non-core assets,
the move towards advanced risk-measurement methods and the
conversion of a EUR1 billion convertible bond, this latter measure
being considered as a buffer by the bank. Fitch considers that
downside risk would arise from the bank failing to keep its
capital to a level comparable to national and international peers.

BP is the fourth largest bank in Italy and the largest
cooperative, with a distribution network of more than 2,100
branches, predominantly based in northern Italy.

The rating actions are:

   -- Banco Popolare:

   -- Long-term IDR downgraded to 'BBB+' from 'A-'; Outlook Stable

   -- Short-term IDR: affirmed at 'F2'

   -- Individual Rating: affirmed at 'C'

   -- Support Rating: affirmed at'2'

   -- Support Rating Floor: affirmed at 'BBB'

   -- Senior debt: downgraded to 'BBB+' from 'A-''

   -- Lower tier 2 subordinated debt: downgraded to 'BBB' from
      'BBB+'

   -- Upper tier 2 subordinated debt: downgraded to 'BBB-' from
      'BBB';

   -- Hybrid tier 1 instruments: downgraded to 'BBB-' from 'BBB';

This rating action has no impact on the rating of the outstanding
covered bonds issued by BP. The new IDR, combined with an
unchanged Discontinuity Factor of 17% now caps the covered bonds
rating on a probability of default basis to 'AA' compared to 'AA+'
previously. However, it still enables an uplift to 'AAA' based on
stressed recoveries given an assumed default of the covered bonds.
The previous level of asset percentage supporting a 'AAA',
standing at 80.7%, still enables the cover pool to withstand a
'AA' stress and also provides stressed recoveries in excess of 91%
in a 'AAA' scenario, justifying a two notches uplift under Fitch
covered bonds rating criteria.

Banca Italease:

   -- Long-term IDR: affirmed at 'BBB+'; Outlook Stable

   -- Short-term IDR: affirmed at 'F2';

   -- Support Rating: affirmed at '2'

   -- Senior debt: affirmed at 'BBB+';

   -- Market linked securities: affirmed at 'BBB+emr'

   -- Lower tier 2 subordinated debt: affirmed at 'BBB';

   -- Trust preferred securities: 'CCC', affirmed, removed from
      Rating Watch Positive

Banca Aletti:

   -- Long-term IDR downgraded to 'BBB+' from 'A-'; Outlook Stable

   -- Short-term IDR: affirmed at 'F2'

   -- Support Rating: downgraded to '2' from '1';

Banca Popolare di Novara:

   -- Long-term IDR downgraded to 'BBB+' from 'A-'; Outlook Stable

   -- Short-term IDR: affirmed at 'F2'

   -- Support Rating: downgraded to '2' from '1';

Credito Bergamasco:

   -- Long-term IDR downgraded to 'BBB+' from 'A-'; Outlook Stable

   -- Short-term IDR: affirmed at 'F2'

   -- Support Rating: downgraded to '2' from '1';


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K A Z A K H S T A N
===================


BTA BANK: Seeks Prison Terms for Men Linked in Ex-Chair Fraud
-------------------------------------------------------------
Erik Larson at Bloomberg News reports that BTA Bank is seeking
U.K. prison terms for two men in connection with a US$4 billion
fraud allegedly spearheaded by former Chairman Mukhtar Ablyazov.

According to Bloomberg, Justice Michael Briggs on Sunday ruled at
the High Court in London that Syrym Shalabayev, Mr. Ablyazov's
brother-in-law who is the subject of an arrest warrant for failing
to reveal his assets, deserves an extra week to comply before
being sentenced.

Justice Briggs, as cited by Bloomberg, said at the hearing that
Mr. Shalabayev, accused of secretly administering Mr. Ablyazov's
assets and whose whereabouts are unknown, must take "a more
serious approach" to the claims.  He "is likely to face a very
serious custodial sentence" if he fails to do so, according to the
report.

BTA, which was taken over by a state-run fund, defaulted on
US$12 billion of debt before restructuring in May 2010, Bloomberg
recounts.  The bank's lawyers appeared on Sunday at a separate
Court of Appeal hearing in a related case in which it seeks a
prison term for Paul Kythreotis, a U.K. citizen who directed a
Cyprus-based company that allegedly helped siphon at least $290
million from BTA, Bloomberg relates.

Bloomberg notes that an adviser to the bank has said it's still
finding new evidence of fraudulent loans linked to Ablyazov and
former Chief Executive Officer Roman Solodchenko, who have both
been sued in the U.K. cases.

                         About BTA Bank

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

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

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

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

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

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

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


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


BNP PARIBAS: Fitch Upgrades Individual Rating to 'C'
----------------------------------------------------
Fitch Ratings has affirmed BGL BNP Paribas' Long-term Issuer
Default Rating at 'A+', Short-term IDR at 'F1+' and Support Rating
at '1'. The Outlook on the Long-term IDR is Stable. At the same
time, the bank's Individual Rating has been upgraded to 'C' from
'D'.

BGL BNPP's Long- and Short-term IDRs and Support Rating continue
to reflect potential support from its ultimate majority
shareholder, the French bank BNP Paribas (rated 'AA-'/Stable),
given BGL BNPP's integration with and strategic importance to its
parent. Fitch considers that there is an extremely high
probability that BNP Paribas would provide support to BGL BNPP in
case of need. BGL BNPP's Stable Outlook is in line with that of
BNP Paribas. Any change in BNP Paribas' IDR would trigger a change
in BGL BNPP's IDR.

The upgrade of the Individual Rating reflects BGL BNPP's solid
financial position following the restructuring and integration
process with BNP Paribas. BGL BNPP's performance is now
satisfactory and, given its business mix largely based on retail
and commercial banking and wealth management, which both generate
relatively predictable earnings, Fitch expects the bank to report
similar profitability over the medium term.

BGL BNPP's sound domestic franchise, which has been increased by
the acquisition of BNP Paribas' former local subsidiary, provides
the bank with a large deposit base, representing its largest
funding source and has resulted in a healthy loans/deposits ratio
(73% at end-2010). BGL BNPP's capitalization is strong with a
Fitch core capital ratio of 29.5% at end-2010.

BGL BNPP is one of the three major retail and commercial banks in
Luxembourg and the leading private bank in the country in term of
asset under management. Directly and through its 75%-owned Belgian
subsidiary Fortis Bank (rated 'A+'/Stable), BNP Paribas controls
66% of BGL BNPP's capital with the remaining 34% owned by the
Luxembourg state.

The ratings actions are:

BGL BNP Paribas

   -- Long-term IDR affirmed at 'A+'; Stable Outlook

   -- Short-term IDR affirmed at 'F1+'

   -- Senior unsecured rating affirmed at 'A+'

   -- Market linked notes affirmed at 'A+emr'

   -- Subordinated debt affirmed at 'A'

   -- Support Rating affirmed at '1',

   -- Individual Rating upgraded to 'C' from 'D'


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


JUBILEE CDO: Fitch Says Ratings Unaffected by Contract Changes
--------------------------------------------------------------
Fitch Ratings says that Jubilee CDO VIII B.V.'s ratings are
unaffected by the change in derivative contracts.

The FX swap, FX options and the GBP Libor cap agreements with
Banque AIG and guaranteed by American International Group Inc.
(rated 'BBB'/Stable) are being terminated. Subsequently, Jubilee
CDO VIII B.V. will purchase an FX swap, FX options and a GBP Libor
Cap with Barclays Bank plc (rated 'AA-'/Stable/'F1+'). The terms
of these new derivative contracts are almost identical to the
terms of the derivative agreement that have been terminated. In
Fitch's view, the minor differences between the agreements are not
material enough to impact the ratings of the transaction.

The notes are rated:

   -- EUR234m Class A-1 (XS0331559640): 'AAAsf'; Outlook Stable;
      Loss Severity (LS) Rating 'LS-2'

   -- EUR24m Class A-2 (XS0331560572): 'AAAsf'; Outlook Stable;
      'LS-4'

   -- EUR42m Class B (XS0331560655): 'Asf'; Outlook Stable; 'LS-4'

   -- EUR20m Class C (XS0331560903) 'BBBsf'; Outlook Negative;
      'LS-5'

   -- EUR18m Class D (XS0331561208): 'BBsf'; Outlook Negative;
      'LS-5'

   -- EUR16m Class E (XS0331561463): 'Bsf'; Outlook Negative;
      'LS-5'


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


ALLIANCE OIL: Fitch Assigns 'B' Rating to RUB5-BB Domestic Bonds
----------------------------------------------------------------
Fitch Ratings has assigned Russia-based OJSC Alliance Oil
Company's two 8.85% RUB5 billion domestic bonds maturing in 2021
(5-year put option), each a final local currency senior unsecured
rating of 'B', a Recovery Rating of 'RR4', and a National senior
unsecured rating of 'BBB(rus)'.

The two RUB5 billion bonds each represent a senior unsecured
obligation of OJSC Alliance Oil Company and are guaranteed by
Alliance Oil Company Ltd. Fitch notes that a cross-default
provision in the draft bond documents relates to other capital
market instruments, including Alliance Oil's outstanding senior
unsecured bonds and existing loans.

Alliance Oil's existing ratings are:

   -- Long-term foreign and local currency Issuer Default Ratings
      (IDR): 'B'/Stable

   -- Short-term foreign and local currency IDRs: 'B'

   -- National Long-term rating: 'BBB(rus)'/Stable


ROSEVROBANK: Fitch Affirms Foreign Currency IDR at 'B+'
-------------------------------------------------------
Fitch Ratings has affirmed Rosevrobank's, Credit Bank of Moscow's
and Locko-bank's Long-term Issuer Default Ratings at 'B+' with
Stable Outlooks. At the same time, Fitch has upgraded REB's
National Long-term rating to 'A(rus)' from 'A-(rus)'.

The affirmation of the banks' Long-term IDRs and Individual
Ratings reflect the post-crisis improvement in the operating
environment; sound profitability, supported by low impairment
charges; and limited refinancing risk in view of accumulated
liquidity reserves and currently abundant market liquidity. At the
same time, the banks' ratings reflect their limited scale and
franchise, quite aggressive past and planned growth (especially
CBOM), which will require new equity injections. For CBOM and
Locko, the ratings also factor in some concerns over asset quality
and already tight capital levels.

The upgrade of REB's National Rating reflects its robust
profitability, which has benefited from the low cost of funding
(3% in 2010) and strong capitalization (Basel I Tier 1 capital
ratio of 18.3% at end-2010). Asset quality is reasonable (non-
performing loans (NPL, more than 90 days overdue) 8% at end-2010).

REB's low funding cost is due to its significant share of
interest-free current accounts (56% of end-2010 liabilities).
However, despite the granularity, these accounts are substantially
concentrated in state-controlled and budget-financed entities.
Fitch has some concerns over the sustainability of these funds,
although there is a long-term track record of them being
relatively resilient to stresses, and also notes certain potential
regulatory risks.

REB is a medium-sized bank based in Moscow. It was Russia's 54th-
largest bank by assets at end-Q111, and is owned by individuals
(84%), a private equity fund (10%) and DEG (6%).

CBOM's ratings are constrained by rapid loan portfolio growth (78%
in 2010), which could conceal asset quality problems (reported NPL
ratio was a low 1.5% at end-2010), and modest capitalization
(Basel I Tier 1 capital ratio of 8.8% at end-2010). The sole
shareholder has made regular capital injections in the past and a
further RUB4.5 billion of contributions are planned in 2011.
However, due to the limited transparency of his other business,
Fitch lacks information about the sources of these funds. The
ratings are supported by CBOM's healthy franchise, with its track
record of lending to brand-name companies from retail and
wholesale trade, and a strong cash collection business in Moscow,
potentially allowing the bank identify problems with borrowers
early on.

CBOM is a medium-sized Moscow-based bank, the 26th-largest in
Russia by assets at end-Q111, ultimately owned by Roman Avdeev.

Locko's ratings are constrained by its rapid growth, some concerns
about asset quality, moderate capitalization and material market
risk.

The bank's loan book rebounded by 68% in 2010 substantially
exceeding pre-crisis levels with the reported NPL ratio being a
modest 0.9% at end-2010. However, Fitch believes this to be an
understatement of underlying asset quality problems due to
significant restructured and rolled-over loans (15%), and material
exposure to collection companies buying impaired loans from the
bank. There is also a significant level of long-term construction
lending (15% of end-2010 loan book). Credit risk is mitigated to
some extent by the favorable environment supporting borrowers'
repayment ability.

Market risk is material due to the significant securities exposure
(17% of assets; mainly bonds at end-2010), although this was a
source of gains for the bank following the crisis. Fitch notes
that due to the limited liquidity of the loan book, the bank will
probably be required to keep a significant liquidity cushion,
which will weigh on profitability. Capitalization is modest
(regulatory capital was only 11.3% at end-Q111), although the bank
has preliminary plans for a subordinated loan in end-June and
equity increase in H211.

Locko is a medium-sized Moscow-based bank. It was Russia's 72nd-
largest bank by assets at end-Q111, and is owned by individuals
(74%), IFC (15%) and East Capital Financial Fund (11%).

The rating actions are:

Rosevrobank

   -- Long-term foreign currency IDR: affirmed at 'B+', Outlook
      Stable

   -- Long-term local currency IDR: affirmed at 'B+', Outlook
      Stable

   -- Short-term IDR: affirmed at 'B'

   -- Individual Rating: affirmed at 'D'

   -- Support Rating: affirmed at '5'

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

   -- National Long-term rating: upgraded to 'A(rus)' from 'A-
     (rus)', Outlook Stable

Credit Bank of Moscow

   -- Long-term foreign and local currency IDRs: affirmed at 'B+',
      Outlook Stable

   -- Short-term IDR: affirmed at 'B'

   -- Individual Rating: affirmed at 'D'

   -- Support Rating: affirmed at '5'

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

   -- National Long-term rating: affirmed at 'A-(rus)', Outlook
      Stable

   -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
      'RR4'

Locko-bank

   -- Long-term foreign and local currency IDRs: affirmed at 'B+',
      Outlook Stable

   -- Short-term IDR: affirmed at 'B'

   -- Individual Rating: affirmed at 'D'

   -- Support Rating: affirmed at '5'

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

   -- National Long-term rating: affirmed at 'A-(rus)', Outlook
      Stable

   -- Senior unsecured debt: affirmed at 'B+'; Recovery Rating at
      'RR4'


* BASHKORTOSAN REPUBLIC: Moody's Changes 'Ba1' Outlook to Positive
------------------------------------------------------------------
Moody's Investors Service has changed the outlook of the Republic
of Bashkortostan's (Russia) global-scale foreign and local-
currency Ba1 issuer ratings to positive from stable.

Ratings Rationale

The outlook change reflects Moody's assessment of Bashkortostan's
(i) strong liquidity profile; (ii) solid (albeit volatile) self-
financing capacity; and (iii) modest debt burden, with very low
debt-service requirements. These positive rating factors all stem
from the republic's conservative approach to budget management,
historically maintained by the regional government.

"Bashkortostan has demonstrated its ability to maintain a very
high liquidity position of around 40% to operating revenue,
despite fluctuations in the tax revenue stream in 2009-10.
Bashkortostan's liquidity profile is the strongest amongst Russian
sub-sovereign peers in relative terms and we expect that it will
remain so in the medium term. Although the liquidity cushion is
likely to partly decrease, we don't anticipate any detrimental
effect on the region's credit quality," says Alexander Proklov, a
Moody's Vice President, senior analyst and lead analyst for
Bashkortostan Republic. "We expect the region's debt position
relative to operating revenue to remain at low double-digit levels
over the next three years. Its amortization profile is smooth and
at present there are no material refinancing risks, whilst
interest costs are low at 0.3-0.4% of operating revenue," adds
Mr. Proklov.

Moody's notes that the improving relationships between the
republic and the federal government -- following the recent
changes in the republic's top officials -- may facilitate
additional federal ongoing support. In addition, the new republic
government's recent efforts to attract private investment in the
regional economy may promote further enhancements in the tax base.
Moody's understands that the positive outcome of these
developments may become visible in the medium term.

The ratings remain constrained by a persisting (albeit decreasing)
dependence on key taxpayers concentrated in the oil-related
industries. "This factor adds volatility to the republic's tax
revenue stream, which was almost flat in 2009-10, after four years
of strong double-digit growth. Following the flat operating
revenue dynamics and inflationary growth in key spending items,
the republic's operating balances weakened during past two years.
Going forward we expect operating margins to strengthen thanks to
recovery in tax revenue, which will provide a basis for further,
possible positive adjustments in the rating," says Mr. Proklov.

Additional pressure was exerted on the region's budget due to
rigidity in key spending items -- particularly in salaries, social
benefits and utility payments -- coupled with a necessity to
develop the regional infrastructure and to support some local
enterprises, particularly in the agricultural sector.
"Nonetheless, Moody's positive outlook on Bashkortostan's ratings
reflect Moody's expectation that a conservative and thorough
budgetary policy will be pursued by the regional government,
leading to stronger operating and financing results going
forward," says Mr. Proklov.

In Moody's view, a rating upgrade may follow the anticipated
improvement in the gross operating balance to 15-17% of operating
revenue, if this improvement is coupled with stable liquidity and
debt positions. However, the outlook may stabilize in case of a
rapid depletion of the liquidity cushion combined with a decrease
in the region's self-financing capacity.

The principal methodologies used in this rating were Regional and
Local Governments Outside the US published in May 2008, and The
Application of Joint-Default Analysis to Regional and Local
Governments published in December 2008.

The Republic of Bashkortostan is one of the highly industrialized
regions in Russia. The republic's population of 4 million accounts
for 2.9% of the Russian total. The republic's Gross Regional
Product accounts for approximately 2.1% of the national GDP, while
its GRP per capita on PPP basis is around 75% of the national
indicator. Key components of the regional GRP are industrial
output, broad trade and services sector, construction and
agriculture.


* OBLAST OF OMSK: Moody's Upgrades Issuer Ratings to 'Ba2'
----------------------------------------------------------
Moody's Investors Service has upgraded to Ba2 from Ba3 the Omsk
Oblast's (Russia) global-scale foreign and local-currency issuer
ratings. The outlook on the ratings remains stable.

Ratings Rationale

The upgrade reflects the region's moderate and decreasing debt
burden and rapid post-recessionary recovery in operating margins,
due to a relatively diversified local tax base and a local economy
that is more resilient to economic cycles than those of its
Russian peers. The stable outlook reflects Moody's expectations of
continuing steadiness in the region's key financial parameters,
which will be supported by positive economic trends going forward.

"In 2010, Omsk Oblast's gross operating balance-to-operating
revenue ratio recovered to single-digit positive levels compared
with the negative level of -4.7% posted in 2009, due to the
recession. Going forward, we expect the operating performance to
remain relatively stable, as the region's government policy is for
fiscal consolidation," says Alexander Proklov, a Moody's Vice
President, senior analyst and lead analyst for Omsk Oblast. "In
the medium term, this policy will help facilitate a consistently
stable debt position of around 30% to operating revenue, which is
well within the levels appropriate for the rating category," adds
Mr. Proklov.

These positive trends have been underpinned by the region's
economy and its tax base, which are more resilient to economic
shocks than those of many of the region's Ba-rated peers. "During
the recession in 2009, the region's tax revenue fell by around 6%
compared with a respective 15% drop at the sub-sovereign level
overall. In 2010, the region posted a 33% year-on-year jump in tax
revenue, following a strong rebound in the local economy. Going
forward, we expect that the region's self-financing capacity will
remain sufficient to avoid any substantial external funding that
might deteriorate the region's credit profile," adds Mr. Proklov.

At the same time, the ratings are constrained by some rigidity of
the regional budget, which diminishes the government's capacity to
manage liquidity pressures. In turn, this determines the region's
consistently weak liquidity profile. "The Oblast of Omsk's
budgetary performance remains exposed to limited budget
flexibility over both revenue and expenditure. In common with
other Russian sub-sovereign entities, the region can neither
introduce new taxes and levies nor significantly increase existing
tax rates. Additionally, the largest operating items are also
intrinsically inflexible and susceptible to inflationary
pressure," explains Mr. Proklov.

Given these constraining factors, the regional government cannot
maintain a meaningful financial reserve and has to rely on bank
loans to cover the possible cash shortfalls. "The lack of
flexibility with regards the cash position means that the region's
debt is typically of a short-to-medium term maturity. Despite the
currently decreasing cost of borrowing and some extensions in the
maturity profile, Omsk Oblast's credit quality will remain exposed
to medium-term refinancing risks," concludes Mr. Proklov.

Moody's notes that further upward adjustments in the Omsk Oblast's
ratings may be underpinned by sustainably improving operating
margins towards the levels of 12-15% of operating revenue,
combined with (i) a visible strengthening of liquidity; and (ii) a
stable debt burden. The ratings could come under pressure if the
region's operating balances deteriorate to very low levels --
particularly if this is coupled with an increasing debt burden to
around 45-50% of operating revenue -- in addition to increasing
short-term refinancing risks.

The principal methodologies used in this rating were "Regional and
Local Governments Outside the US" published in May 2008, and "The
Application of Joint Default Analysis to Regional and Local
Governments" published in December 2008.

Omsk Oblast is situated in south-west Siberia and borders
Kazakhstan. Its population is 2 million or 1.4% of the national
total. Per capita gross regional product is approximately 75% of
per capita gross domestic product. The secondary sector makes up
nearly 50% of GRP. The key enterprises and taxpayers are food, oil
refining, petrochemicals and machine building sectors.


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


TDA FTPYME PASTOR: DBRS Confirms EUR127-Mil. Series B Notes at 'B'
------------------------------------------------------------------
DBRS Ratings Limited has confirmed ratings of AAA (sf)
of the EUR39,320,793.75 Series A1 Notes, AAA (sf) of the
EUR250,000,000.00 Series A2(G) Notes and B (low) (sf) of the
EUR127,500,000.00 Series B Notes issued by TDA FTPYME PASTOR 9,
F.T.A.  The transaction is a cashflow securitization
collateralized primarily by a portfolio of bank loans originated
by Banco Pastor, S.A. to Spanish small and medium-sized
enterprises.  As of April 30, 2011, the transaction had a current
performing portfolio notional amount of EUR406,942.71 million and
included 3,241 loans.  The portfolio continues to be serviced by
Banco Pastor.

The confirmation of the ratings is based on the notification of
the replacement of Banca March, S.A. as Accounts Bank
(Reinvestment Account) by Banco Popular Espanol, S.A.

The rating confirmation by DBRS does not signify the approval of
the amendment by DBRS or an opinion by DBRS as to whether the
amendment is beneficial or detrimental to the holders of the
securities.

The principal methodology is Master European Granular Corporate
Securitisations (SME CLOs), which can be found on our website
under Methodologies.

The sources of information used for these ratings include parties
involved in the rating, including but not limited to TDA FTPYME
PASTOR 9, F.T.A., and Banco Pastor, S.A. DBRS considers the
information available to it for the purposes of providing this
rating was of satisfactory quality.

For additional information on DBRS European SME CLO(s), please see
European Disclosure Requirements, located at
http://www.dbrs.com/research/235269


TDA SA: S&P Assigns 'B (sf)' Rating on Two Classes of Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary credit
ratings to TDA Sa Nostra Empresas 2, Fondo de Titulizacion de
Activos' asset-backed floating-rate notes.

"This transaction closed in March 2009, but we were not engaged to
rate the notes at that time. Since closing, the class A notes have
amortized to EUR117.19 million from an initial amount of EUR257.70
million," S&P said.

"This transaction is the first small and midsize enterprise (SME)
securitization originated by Caixa de Balears (Sa Nostra) that we
rate. Sa Nostra has its home market in the Spanish region of the
Balearic Islands. The portfolio securitized comprises Spanish SME
loan receivables that Sa Nostra originated and sold to the
issuer," S&P related.

"Our ratings reflect our analysis of the servicer's (Sa Nostra)
ability to fulfill its role in the transaction, and the cash flow
mechanics of the transaction--assuming various stress scenarios,"
S&P said.

A combination of subordination from the lower-rated notes and a
cash reserve provide protection to the notes. A subordinated loan
fully funded the cash reserve at closing. As of the last interest
payment date in March 2011, the cash reserve represents about 18%
of the outstanding balance of the notes.

The different classes of notes will amortize pro rata once further
enhancement has been built up and provided that certain
performance triggers are fulfilled. "We based our preliminary
ratings on the notes on our assessment of the credit and cash flow
characteristics of the underlying asset pool, as well as an
analysis of the counterparty and operational risks of the
transaction. Our analysis indicates that the credit enhancement
available to the class A, B, C, and D notes is sufficient to
mitigate the credit and cash flow risks to a 'A-', 'B+', 'B', and
'B' rating level," S&P said.

"Additionally, we consider that the transaction documents
adequately mitigate the counterparty risk from the swap, treasury
account provider, paying agent, reinvestment account provider, and
reinvestment account guarantor provider to a 'A-' rating level, in
line with our updated counterparty criteria," S&P related.

Banco Santander S.A. (AA/Negative/A-1+) acts as treasury account
provider and paying agent. Sa Nostra (not rated) is the
reinvestment account provider. The reinvestment account holds the
reserve fund. Banco Popular Espanol S.A. (A-/Negative/A-2) is the
guarantor of the reinvestment account. The interest swap
counterparty is BNP Paribas (AA/Negative/A-1+).

"We will assign final ratings upon receiving final executed
documentation. The new issue report for this transaction will
include a scenario analysis designed to show what we believe to be
the likely effect of changes to a number of collateral performance
drivers on our cash flow analysis and ratings," S&P added.

Ratings List

TDA Sa Nostra Empresas 2, Fondo de Titulizacion de Activos
EUR355 Million Asset-Backed Floating-Rate Notes

Class        Prelim.      Current        Amount at
             Rating       amount         closing[1]
                          (mil. EUR)    (mil. EUR)

A            A- (sf)      117.19          257.70
B            B+ (sf)       50.40           50.40
C            B (sf)        36.50           36.50
D            B (sf)        10.40           10.4O

[1]March 31, 2009


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


SAAB AUTOMOBILE: Production to Remain Stalled for Two Weeks
-----------------------------------------------------------
The Scotsman reports that Saab Automobile warned that production
will remain halted for a further two weeks as it struggles to find
money to pay its suppliers.

Output at Saab's Trollhattan site had restarted briefly last month
but work quickly stalled again after the factory ran out of spare
parts, The Scotsman relates.

As reported by the Troubled Company Reporter-Europe on June 13,
2011, Dow Jones Newswires said that production at Saab Automobile
was halted for a third consecutive day on June 9 and owner Spyker
Cars NV warned of continued delays as it works out new contracts
with suppliers, raising fresh fears about the future of the
Swedish car maker.  In a statement, Spyker admitted that Saab's
supply chain still wasn't fully functional as some suppliers
continued to withhold deliveries due to unpaid bills, Dow Jones
disclosed.

With an annual production of up to 126,000 cars, Saab's current
models include the 9-3 (available as a convertible or sport
sedan), the luxury 9-5 sedan (also available in a sport wagon),
and the seven-passenger 9-7X SUV.  As it prepared to separate from
General Motors, Saab filed for bankruptcy protection in February
2009.  A year later, in February 2010, GM sold Saab to Dutch
sports car maker Spyker Cars for about US$400 million in cash and
stock.


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


EMI GROUP: Launches Strategic Review: Mulls Sale, Restructuring
---------------------------------------------------------------
BBC News reports that EMI Group has launched a strategic review
into the future of the business, which it said could result in a
sale, share flotation, or a restructuring of its finances.

Nevertheless, EMI Group said there is no assurance that any of
these three possible actions would be carried out, BBC relates.

US bank Citigroup took ownership of EMI in February after previous
owner Terra Firma, which bought UK-based music company for
GBP4.2 billion in 2007, failed to meet loan payments, BBC
recounts.

                        Potential Bidders

In a separate report, Andrew Edgecliffe-Johnson at The Financial
relates that Len Blavatnik, who could find hundreds of millions of
dollars worth of one-off savings from combining Warner Music and
EMI's recorded music arms, is expected to be among a host of
strategic, financial and individual bidders for EMI.

According to the FT, other participants in the Warner auction that
are expected to look at EMI include BMG Music Publishing, backed
by Kohlberg Kravis Roberts and Bertelsmann, Sony's recorded music
and publishing ventures, and Vivendi's Universal Music.

EMI Group Ltd. -- http://www.emigroup.com/-- is the fourth
largest record company in terms of market share (behind Universal
Music Group, Sony Music Entertainment, and Warner Music Group).
It houses recorded music segment EMI Music and EMI Music
Publishing.  EMI Music distributes CDs, videos, and other formats
primarily through imprints and divisions such as Capitol Records
and Virgin, and sports a roster of artists such as The Beastie
Boys, Norah Jones, and Lenny Kravitz.  EMI Music Publishing, the
world's largest music publisher, handles the rights to more than a
million songs.  EMI Music operates through regional divisions (EMI
Music North America, International, and UK & Ireland).  Financial
services giant Citigroup owns EMI.


HEALTHCARE LOCUMS: In Dispute with Shareholders Over Rescue Plans
-----------------------------------------------------------------
Gill Plimmer at The Financial Times reports that Healthcare Locums
is in dispute with two of its biggest shareholders over
alternative rescue plans.

The FT says investors have become impatient with slow progress at
the company, which has been in turmoil since January when the Aim-
quoted shares were suspended, pending an investigation into
alleged accounting irregularities that is still to be completed.

According to the FT, sources close to the situation said that with
the hiring agency paying as much as GBP1 million a month in fees
to two Australian banks, which hold more than 90% of the group's
debt, shareholders are keen to secure a more stable financial
footing for the company ahead of a widely expected upturn in NHS
contracts.

Toscafund Asset Management, the second-largest shareholder with a
15.5% stake, has proposed buying the group's GBP100 million debts,
the FT discloses.  In return for that bail-out, Toscafund could
swap the debt for equity, becoming the largest shareholder and
owner, the FT states.  This has led to bitter opposition from
other investors including Permian, the US hedge fund that speaks
for 6.35% of the shares, who claim they would see the value of
their stakes massively diluted, the FT notes.  Instead, Permian
has arranged a tentative refinancing deal with a private equity
firm, the FT relates.

Healthcare Locums is a UK-based medical recruitment agency.


ROYAL MAIL: Is 'Balance Sheet' Insolvent, Greene Says
-----------------------------------------------------
Becky Barrow at thisismoney.co.uk reports that Royal Mail has
admitted it is insolvent even as it awarded its new boss a bonus
equal to the Prime Minister's salary.

According to thisismoney.co.uk, Moya Greene scooped a GBP142,000
reward, just GBP500 short of David Cameron's annual pay.

Ms. Moya's total pay for her first nine months, including her
salary, bonus, benefits and pension, was GBP777,611, making her
one of Britain's best-paid civil servants, the report discloses.

thisismoney.co.uk notes that Royal Mail has axed 65,000 workers
since 2002, and tens of thousands more of its 163,000 employees
face redundancy as the state-owned firm rushes to modernize.

thisismoney.co.uk relates that Miss Greene added to job security
fears when she repeatedly warned: "This is going to have to be a
smaller company in the future."

According to the report, Ms. Greene said the company is 'balance
sheet insolvent', which means it could not survive without a
GBP1.7 billion lifeline from the public purse.

Dave Ward, of the Communication Workers' Union, pointed out that
the pay announcement comes only weeks after postal workers were
told they not be getting bonuses they were expecting.

"There are serious problems with executive pay in this country and
Royal Mail is a prime example," thisismoney.co.uk quotes Mr. Ward
as saying.

The Government has put Royal Mail up for sale, but is having to
take on its debts and its GBP4.5 billion pension deficit to
attract a bidder.  The firm's letters and parcels business is
losing GBP120 million a year and a first-class stamp has risen to
46p, a 40% increase in ten years.

Royal Mail Holdings is the state-owned company that delivers more
than 75 million letters and other items daily to some 28 million
addresses in the UK through its main unit, Royal Mail.  Royal Mail
Holdings maintains a retail presence through its Post Office unit,
which oversees about 12,000 branches and provides financial,
travel, and postal services.  Royal Mail delivers more than 400
million packages in the UK, through Parcelforce Worldwide, and in
continental Europe, through Netherlands-based subsidiary General
Logistics Systems.


SOUTHERN CROSS: Gets Four Months of Breathing Space
---------------------------------------------------
Simon Mundy at The Financial Times reports that after weeks of
concern about possible insolvency, Southern Cross Healthcare won
itself four months of breathing space in a crucial meeting with
its landlords on June 15.

The FT relates that on June 13, the 80 landlords decided on an
alternative proposal that would see the company retain 400 homes
out of a total 752.

The proposal, the FT discloses, laid out a four-month "transition"
period, and demanded that creditors should have "control" --
understood to mean that they would be able to decide on the
company's management, the FT discloses.

According to the FT, a "restructuring committee", with
representatives of both the company and its landlords, will have
until October to set out a long-term plan for the company.

Many of the homes will be taken over by other landlords, the FT
states.  However, dozens of homes are likely to close down,
forcing their residents to find new accommodation, the FT notes.

Southern Cross Healthcare provides residential and nursing care to
more than 31,000 residents cared for by 45,000 staff in 750
locations.  Its also operates homes that specialize in treating
people with dementia, mental health problems and learning
disabilities.


VBA LTD: Former Senior Employee Still Waits for Salary Owed
-----------------------------------------------------------
The Bolt News reports that Phil Gowing, a former operations
manager in VBA Ltd, is still waiting for his salary owed -- almost
12 months after the business folded.

As reported in the Troubled Company Reporter on Sept. 2, 2010,
catalogue e-business said that VBA Ltd.'s administrators have
agreed to a pre-pack sale of the business and assets to Elitemark,
a company run by VBA's founders.

The Bolt News relates that under what is known as a pre-pack deal
the Farnworth-based company remained in business under the same
owners at the same address in Higher Market Street but under a new
company name, even though administrators had been called in.  The
report notes that the pre-pack deal means the old company's debts
are wiped clean and customers who have paid for goods but not
received them before the pre-pack deal could be left out of
pocket, having to join the queue of unsecured creditors.

The process is legal.

The Bolt News notes that Phil Gowing, who was operations manager,
is now calling for a change in the law.  He was made redundant in
early June last year, days before the company went under.

The Bolt News relates that Mr. Gowing said that he was owed
GBP1,700; but when he tried to get his money, a tribunal threw out
his claim as the old company, which owed him the salary, no longer
existed.

VBA went into administration on June 21, 2010.  The Bolt News
relates that on the same day the assets of VBA Ltd were bought
from administrators Begies Traynor by Elitemark Ltd.

The administrators said the company failed due to a combination of
factors and was marketed for sale as a going concern, The Bolt
News discloses.

VBA went into administration and Elitemark Ltd, is continuing
trading as Sound and Vision at the same address, a spokesman
confirmed, The Bolt News relates.  Former directors of the old
company, Neil Ball and Simon Clark, are directors of the new
company.

Bolton-based VBA Ltd. traded under the brands Sound and Vision,
HiFi Bitz and Digital Direct.


* Insolvency Service Proposes New Legislation on Pre-Pack Sales
---------------------------------------------------------------
PrintWeek reports that the Insolvency Service (IS) has proposed
new legislation to tighten up U.K. regulations around pre-pack
sales including extending them to liquidations to close any
loopholes.

The changes, says PrintWeek, would be made to the current
legislation, which dates from 1986, and could be brought in as
early as this October.

Following an IS consultation into the current rules, PrintWeek
relates, it is now proposing that administrators would have to
give creditors three days' notice if they intend to sell a
significant portion of the business back to a connected party
without openly marketing the sale.

If adopted, the new rules would also require the administrator to
include a SIP16 style report to justify any case where a
significant part of the business is sold off prior to the
administrator's proposals or the liquidator's first progress
report being issued, according to PrintWeek.

Finally, PrintWeek adds, administrators would be required to
clearly state in their report that the price paid in a pre-pack
sale represents the best value for creditors.


                            *********

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

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


                 * * * End of Transmission * * *