TCREUR_Public/110803.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, August 3, 2011, Vol. 12, No. 152

                            Headlines



B U L G A R I A

MARKOVO TEPE: Falls Into Bankruptcy
PETROL AD: Moody's Assigns 'Caa3/LD' PDR After Distressed Exchange


C Y P R U S

* CYPRUS: Bank of Cyprus Calls for Urgent Action to Avert Bailout


D E N M A R K

* DENMARK: EU Approves Amended Bank Support Program


F R A N C E

ODYSSEUS FCC: S&P Affirms Rating on Class C Notes at 'B-'
TITAN EUROPE: Fitch Affirms 'CC' Ratings on Three Note Classes
WENDEL: S&P Affirms Corporate Credit Ratings at 'BB-/B'
WINDERMERE XII: S&P Affirms Ratings on Two Note Classes at 'B-'


G E R M A N Y

ARIADNE S.A.: Moody's Reviews 'Caa1' Rating on Class A Notes
EMC VI-EUROPROP: Fitch Affirms 'CC' Ratings on Two Note Classes
EUROPEAN LOAN: S&P Affirms 'D' Ratings on Three Note Classes
PROMISE-I MOBILITY: Fitch Affirms 'CCC' Ratings on 8 Note Classes
WALTER BAU: Thai Gov't. to Pay EUR20MM Bond to Recover Royal Jet


G R E E C E

DRYSHIPS INC: Inks Definitive Pact to Acquire OceanFreight
* S&P Affirms 'CC/C' Counterparty Credit Ratings on 4 Greek Banks


I R E L A N D

ALLIED IRISH: At Least EUR250-Mil. in Notes Accepted for Purchase
SUPERQUINN: Economy Minister Welcomes Musgrave's EUR10 Mil. Fund
* IRELAND: Allocated EUR1.5-Bil. in 2010 to Cover Loan Write-downs
* IRELAND: 971 Firms Go Bust in First Seven Months in 2011


I T A L Y

ARES FINANCE: Fitch Downgrades Ratings on Two Note Classes to 'D'
COMPAGNIE INDUSTRIALI: S&P Affirms Corp. Credit Ratings at 'BB/B'


K A Z A K H S T A N

KAZKOMMERTSBANK: Completes Unit's Voluntary Liquidation


N E T H E R L A N D S

GREEN PARK: Moody's Upgrades Rating on Class R Notes to 'Ba3'
INVESCO CONISTON: Moody's Lowers Rating on Class F Notes to 'Caa1'
QUEEN STREET: Moody's Lowers Rating on Class E Notes to 'Ba3'


R O M A N I A

* ORADEA: Fitch Affirms Long-Term Currency Ratings at 'B+'


R U S S I A

CONTINENT AIRLINES: Collapse Blamed on Unauthorized Plane Purchase
SB BANK: Moody's Affirms 'B3' Long-Term Deposit & Debt Ratings
SKB-BANK: Fitch Affirms Issuer Default Ratings at 'B'


S P A I N

AYT GENOVA: Moody's Downgrades Rating on D Certificate to 'B3'
GC FTPYME: Moody's Reviews B1-Rated Class B Notes for Downgrade
OBRASCON HUARTE: Moody's Says Ratings Unchanged After 2Q Results
SANTANDER CONSUMER: S&P Cuts Ratings on Three Note Classes to 'D'


S W E D E N

FROSTBITE 1: Moody's Assigns Caa1 Rating to EUR202MM Sr. PIK Notes


U K R A I N E

* UKRAINE: President Vetoes Creditor Rights Protection Law


U N I T E D   K I N G D O M

ALPHATRAN CAPITAL: Members Opt to Liquidate Funds, Close Firm
BEAR INN: Calls in Administrators, Seeks Buyer to Save 20 Jobs
CABLE & WIRELESS: Moody's Changes Outlook on Ratings to Negative
COMET: Buyers May Have to Take on GBP49-Mil. Pension Deficit
DECO 12: S&P Affirms Ratings on Two Classes of Notes at 'D'

EUROSALI-UK: Moody's Confirms 'B2' Rating on Class C1a Notes
GLOBAL SHIP: To Hold Annual Meeting of Shareholders on Aug. 31
NORTHERN ROCK: Bad Bank Repays GBP1-Bil. to Gov't. in First Half
PRESBYTERIAN MUTUAL: Firm's Savers to Receive Cheque Payment
PUNCH TAVERNS: Demerged Companies Begins Trading

SEA FRANCE: DFDS & LD Lines in Joint Bid to Acquire Firm's Assets
UNIQUE PUB: S&P Lowers Rating on Class N Notes to 'B+'
URSUS EPC: Fitch Downgrades Ratings on Three Note Classes to 'D'
VISIT LONDON: Assembly Members Criticize Mayor Over Collapse
WREXHAM FC: Wrexham Supporters' Trust Seeks to Acquire Club

* UK: Lack of Credit May Lead to More Insolvent Small Businesses


                            *********


===============
B U L G A R I A
===============


MARKOVO TEPE: Falls Into Bankruptcy
-----------------------------------
FOCUS News Agency, citing the Trud daily, reports that the Markovo
Tepe Mall in the city of Plovdiv has officially declared
bankruptcy.

Since the beginning of 2010, the mall's inauguration had been
postponed several times, according to FOCUS News.  Last year,
investors in the project stopped repaying a EUR45 million loan
from Austrian Investkredit Bank, the bank financing the project,
FOCUS News recounts.  Thus the bank gained control over the mall,
FOCUS News notes.


PETROL AD: Moody's Assigns 'Caa3/LD' PDR After Distressed Exchange
------------------------------------------------------------------
Moody's Investors Service assigned a Caa3/LD probability of
default rating ("PDR") to Petrol AD following the company's recent
disclosure that it repurchased EUR26.6 million face value of its
EUR100 million senior unsecured guaranteed bonds maturing on
October 26, 2011 at a substantial discount to par during the first
quarter of 2011. The open market transaction constitutes a
distressed exchange and a limited default by Moody's definition.
The LD designation signifies a limited default and also
incorporates the possibility of additional open market
transactions at substantial discounts to par over the next three
months. Moody's expects to remove the LD designation after
approximately three business days.

At the same time, Moody's has left the Caa3 corporate family
rating unchanged with a negative outlook. The rating of the bonds
remains at Ca.

RATINGS RATIONALE

Moody's notes that the open market transaction has helped reduce
Petrol's overall debt load and the repayment risk associated with
its bond issue maturing on October 26, 2011. However, it does not
solve the immediate liquidity pressure, which the company is
facing as a result of its reliance on securing a new bank credit
facility in order to refinance the balance of EUR75 million still
outstanding under the above-mentioned bond issue. Therefore,
despite the material reduction of overall indebtedness, Moody's
continues to view Petrol's credit risk relatively high reflected
in the Caa3 corporate family rating.

Adjustment:

   Issuer: Petrol AD

   -- Probability of Default Rating, Adjusted to Caa3/LD from Caa3

The principal methodology used in rating Petrol AD was the Global
Refining and Marketing Rating Methodology published in December
2009. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Headquartered in Sofia, Petrol is Bulgaria's largest fuel retailer
and wholesale distributor, operating 371 retail stations and 12
storage facilities operated at the end of 2010. Petrol sold 759
million litres of oil products and generated total sales revenues
of BGN1,218 million in 2010.


===========
C Y P R U S
===========


* CYPRUS: Bank of Cyprus Calls for Urgent Action to Avert Bailout
-----------------------------------------------------------------
Joe Parkinson at Dow Jones Newswires reports that the Bank of
Cyprus on Monday urged the government to take immediate action to
prevent the country from becoming the fourth euro-zone member to
seek a bailout from the European Union.

The call from the commercial bank, the island's largest financial
institution, comes as discussions among Cypriot lawmakers on
spending cuts appear increasingly strained, Dow Jones relates.

Cyprus's banks are sitting on an estimated EUR5 billion
(US$7 billion) in Greek sovereign debt, and its economy is heavily
exposed to Greece through trade, Dow Jones discloses.

According to Dow Jones, so far, the island's conservative banking
sector has avoided government handouts, remaining profitable
despite the economic crisis.  But Cypriot bond yields have risen
sharply in recent months, underlining market concerns about
fallout from a possible Greek default, Dow Jones notes.  Moody's
downgraded Cyprus two notches in February, Dow Jones recounts.

Nicosia also has EUR2 billion in debt coming due in the first
quarter of 2012, which will require significant savings, Dow Jones
discloses.


=============
D E N M A R K
=============


* DENMARK: EU Approves Amended Bank Support Program
---------------------------------------------------
Jones Hayden at Bloomberg News reports that the European
Commission approved Denmark's amended bank support program.

"The European Commission has authorized under EU state-aid rules
the amendment of the Danish winding-up scheme for credit
institutions until December 31, 2011," Bloomberg quotes an the
European Union executive in Brussels as saying on Monday in a
statement.

The EU noted: "Denmark has amended the act commanding the Deposit
Guarantee Fund, so as to allow the fund to contribute to the bail-
out of a failing bank by providing compensation to an acquiring
bank.  This possibility will only be used, if it is less costly
for the fund to provide the needed compensation than to deal with
the distressed bank through the winding-up scheme, where the Fund
has to compensate the depositors."

According to Bloomberg, the statement noted that "The commission
found the amended scheme to be compatible with EU rules that allow
aid to remedy a serious disturbance in the economy of a Member
State."


===========
F R A N C E
===========


ODYSSEUS FCC: S&P Affirms Rating on Class C Notes at 'B-'
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
Odysseus (European Loan Conduit No. 21) FCC's class A, B, and C
notes.

"The rating action results from our review of the three remaining
underlying loans backing the notes. Of the three loans, one is
already in a distressed situation (the Belgian Bonds loan) and the
two other French loans mature within the next 13 months. We
believe that the loans may be exposed to refinancing difficulties
if the current market conditions persist. The loans are also
exposed, in our view, to principal losses in certain of our stress
scenarios. However, in our base case scenario, we believe these
losses should be limited to the class C notes. This is reflected
in our current credit ratings," S&P related.

The France Telecom loan, which accounts for 69% of the pool, is
secured against an office property located in Paris, France, and
fully let to France Telecom (A-/Stable) until December 2016, but
with a lease break option in December 2013. "The loan matures in
August 2012. Although we have reasons to believe that the tenant
may not exercise its break option in 2013, the break option
negatively affected the loan recoveries in some of our stress
scenarios," S&P said.

The Ford loan, which accounts for 20% of the pool, is secured
against an office block of five properties located near Paris.
"The portfolio was initially fully let to French subsidiaries of
the car manufacturer Ford, but we understand that they vacated 42%
of the space last year. On a more positive note, the borrower
agreed new lease terms for the remaining space with Ford Credit
Europe PLC, Fmc Automobile France, Bremany, and Mazda. The partial
departure of the initial tenants allowed the servicer to escrow
the surplus rental income in accordance with the loan
documentation. About EUR2.0 million has been escrowed so far. We
understand that this cash may be used to hyper-amortize the loan,
if necessary. The loan matures in August 2011. We factored into
our analysis the consequences of a payment default at loan
maturity," S&P stated.

The Belgian Bonds loan, which accounts for 11% of the pool, is
secured against five mixed-use properties spread across Belgium.
The loan has been in special servicing since 2009, following the
failure by the borrower to repay the loan at maturity. Although
the income from the properties has significantly declined because
of the high level of vacancy (42%), it has remained sufficiently
high to meet required loan interest payments. "We understand that
the parties are currently in discussion to potentially restructure
the loan," S&P stated.

"In April 2011, we lowered our ratings on the class A notes for
counterparty reasons (see 'Ratings List Resolving European
Structured Finance Counterparty CreditWatch Placements-April 28,
2011 Review,' published on April 28). The counterparty risk in
this transaction remains unchanged, in our view," S&P related.

At closing in December 2005, Odysseus (European Loan Conduit No.
21) FCC acquired six loans secured by 13 properties in France and
Belgium. Since closing, three loans have repaid in full. Three
loans remain outstanding and the current note balance is GBP108.2
million (from EUR326.8 million at closing). The final maturity
date of the notes is in August 2015.

Ratings List

Odysseus (European Loan Conduit No. 21) FCC
EUR326.8 Million Commercial Mortgage-Backed Floating- And
Variable-Rate Notes

Class              Rating

Ratings Affirmed

A                  A+ (sf)
B                  BBB (sf)
C                  B- (sf)


TITAN EUROPE: Fitch Affirms 'CC' Ratings on Three Note Classes
--------------------------------------------------------------
Fitch Ratings has affirmed Titan Europe 2007-2 Limited's floating
rate notes:

   -- EUR733.7m Class A1 (XS0302915060) affirmed at 'AAsf';
      Outlook Negative

   -- EUR227.9m Class A2 (XS0302916381) affirmed at 'Asf'; Outlook
      Negative

   -- EUR154.3m Class B (XS0302917272) affirmed at 'BBsf'; Outlook
      Negative

   -- EUR115.2m Class C (XS0302917512) affirmed at 'CCCsf'; RR4

   -- EUR86.1m Class D (XS0302917868) affirmed at 'CCCsf'; RR6

   -- EUR37.9m Class E (XS0302919138) affirmed at 'CCsf'; RR6

   -- EUR21.3m Class F (XS0302919641) affirmed at 'CCsf'; RR6

   -- EUR11.2m Class G (XS0302920730) affirmed at 'CCsf'; RR6

Despite the uncertainty regarding the outcome of the ongoing sale
of the Portier portfolio and the upcoming maturity of the largest
loan, MPC Portfolio, the current ratings already incorporate the
possibility of loss allocations from loan workouts.

Following the successful refinancing of the EUR11.3 million Ohmer
Portfolio and corresponding sequential note redemption, 16 of the
original 18 loans remain. Of these, 10 loans accounting for 60% of
the current balance are scheduled to mature between July 2011 and
April 2012.

The EUR330.4 million Project Christie loan, formerly in special
servicing following a maturity default, has been restructured. The
restructuring agreement's key terms include a loan extension until
April 2013, the redemption of 71% of the B-note and a full cash
sweep to redeem the A-note. This results in lower current and exit
leverage, improving the borrower's prospects of refinancing the
loan at the new maturity date.

The EUR431.1 million MPC Portfolio's borrower utilized all three
contractual extension options and therefore the loan will become
due in January 2012. A revaluation of the portfolio of secondary
Dutch office properties resulted in a reported A-note leverage of
119% in April 2011 (155% for the entire facility). Fitch believes
that the likelihood for a timely redemption is remote, with a
restructuring or the enforcement as the most likely outcome. The
notes' final legal maturity is in April 2017.

The EUR128.4 million Portier loan remains in special servicing.
The portfolio is in the process of being sold with a current
estimated finalization date in September 2011. The reported A-note
leverage is 94% (118% on the whole loan). The sales price has not
been disclosed yet, however the agency believes that the
securitized loan may suffer a loss due to the high leverage and
workout-related costs which rank senior in the waterfall.


WENDEL: S&P Affirms Corporate Credit Ratings at 'BB-/B'
-------------------------------------------------------
Standard & Poor's Ratings Services revised to positive from stable
its outlook on France-based operating holding company Wendel. "At
the same time, we affirmed our 'BB-/B' long- and short-term
corporate credit ratings on the company. The recovery rating is
unchanged at '3', indicating our expectation of meaningful
(50%-70%) recovery in an event of payment default," S&P related.

The outlook revision to positive reflects that Standard & Poor's
loan-to-value ratio (LTV) for Wendel has been decreasing toward
levels commensurate with a 'BB' rating, namely around 45% on a
sustainable basis. At end-July 2011, Wendel's LTV ratio stood at
about 45%, pro forma for the Parcours and Mecatherm acquisitions.
"Because part of the debt that Wendel used to finance the
acquisition of a stake in Compagnie de Saint-Gobain is subject to
margin calls, we consolidate this debt in our LTV calculation,
although it is technically nonrecourse to Wendel," S&P said.

Three listed assets represented over 80% of Wendel's portfolio
value at end-June 2011, namely: Saint-Gobain (BBB/Stable/A-2), in
which Wendel holds a 17% interest; Bureau Veritas (not rated), 52%
owned; and Legrand (BBB+/Positive/A-2), 11%-owned. Large majority
stakes in much smaller but highly leveraged unlisted corporate
entities round out Wendel's portfolio. "The relatively strong
creditworthiness of Saint-Gobain, Legrand, and Bureau Veritas and
their listed, potentially liquid nature, support our ratings. We
also note Wendel's willingness to deleverage, as shown by the sale
of Legrand shares and of Stallergenes in the past 12 months. While
being beneficial to the financial profile, the disposals somewhat
undermine the portfolio's credit quality, as they increase its
concentration on Saint-Gobain," S&P related.

"We expect the company to continue improving its financial risk
profile. For an upgrade, we would look for a track record of an
LTV ratio below 45% and signs that Wendel would be able to
maintain this. A further prerequisite would be a reduction of cash
burn at the holding level. In addition, we would expect
acquisitions to be pre-financed by disposals to a large extent.
Failure to manage the LTV ratio within Standard & Poor's rating
threshold could lead in a first step to a revision of the outlook
to stable, or, though less likely at this stage, to a negative
rating action if higher financial risk is not commensurate with
the current ratings. In addition, changes in portfolio
characteristics or composition may trigger a revision of the LTV
threshold we deem acceptable for the ratings," S&P added.


WINDERMERE XII: S&P Affirms Ratings on Two Note Classes at 'B-'
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
all classes of notes in Windermere XII FCC, following its review
of the transaction performance.

The notes are ultimately secured by "Coeur Defense", a trophy
asset located in Paris, La Defense (France).

The loan was transferred to special servicing in December 2008
following the decision of the Paris Commercial Court to place the
borrower under the protection of French "procedure de sauvegarde"
(safeguard proceedings)--a form of pre-insolvency, Chapter 11-
style proceeding available in France for distressed companies.

A number of events of default are continuing under the loan: the
opening of safeguard proceedings, payment defaults, and a breach
of the financial covenants (the loan-to-value [LTV] and interest
coverage ratio [ICR] covenants).

After more than two years of legal proceedings, the case was heard
by the French Supreme Court in March 2011. The French Supreme
Court decided to refer the case to the Court of Appeal of
Versailles, which will re-examine the facts to determine whether
or not the borrower's difficulties met the "sauvegarde" test as
restated by the Supreme Court. "We understand that the hearing
date is yet to be determined by the French courts. In parallel to
the safeguard proceedings, the first instance Commercial Court
recognized the validity of the rental income assignment ('cession
Dailly') to the issuer. We considered this a positive credit
factor in our analysis, as it enables the issuer to control the
property cash flow, even in safeguard proceedings, although we
understand that this point may be re-examined by the Versailles
Court of Appeal," S&P said.

"We believe the property continues to experience material
difficulties. In addition to the material yield shifts that have
taken place in the French property market, the property net income
has significantly dropped since issuance because of a lower
occupancy rate (62% as of April 2011). In our view, the legal
proceedings are contributing to this drop in property cash flow
because they may discourage potential tenants from signing new
leases. We also believe that if no new leases are signed, the
vacancy rate could rise to 50% by loan maturity date, and to
almost 100% by legal maturity date. Although some credit may be
given to re-lettings over time, we are of the opinion that the
issuer remains significantly exposed to principal losses. This is
reflected in our current ratings, and we have therefore affirmed
our ratings on all classes," S&P said.

Windermere XII is a commercial mortgage-backed securities (CMBS)
transaction secured by a single loan of EUR1.519 billion, itself
backed by an office property in the La Defense business district
of Paris. At closing, Windermere XII also issued EUR119.95 million
junior unlisted notes.

Ratings List

Windermere XII FCC
EUR1.519 Billion Commercial Mortgage-Backed Floating-Rate Notes

Class              Rating

Ratings Affirmed

A                  A (sf)
B                  BBB (sf)
C                  BB (sf)
D                  B+ (sf)
E                  B (sf)
F                  B- (sf)
G                  B- (sf)


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


ARIADNE S.A.: Moody's Reviews 'Caa1' Rating on Class A Notes
------------------------------------------------------------
Moody's Investor Service has taken these actions on a limited
number of Greek structured finance transactions:

1. Titlos plc, a government-related transaction, has been
    downgraded to Ca(sf) from Caa1(sf);

2. Ariadne S.A. Secured Notes, also a government-related
    transaction, has been placed on review for downgrade;

3. Four transactions with high linkage to Greek banks, namely
    Axia III Finance Plc, Katanalotika Plc, Praxis II Finance Plc,
    and Epihiro Plc, have also been placed on review for
    downgrade.

Moody's did not take any action on any other Greek structured
finance transaction.

The highest achievable rating for Greek structured finance
transactions remains Ba1(sf).

RATINGS RATIONALE

The rating actions follow the downgrade to Ca from Caa1 of the
Greek government debt rating and the placement on review for
downgrade of the ratings of Greek banks on 25 July 2011. Moody's
anticipates that Greek banks will suffer substantial economic
losses on their holdings of Greek government debt under the debt
exchange proposal made by major financial institutions.

-- GOVERNMENT-RELATED TRANSACTIONS

Moody's took rating actions on two transactions that are directly
linked to the creditworthiness of the Greek government:

- Moody's downgraded to Ca(sf) from Caa1(sf) the rating of Titlos
  plc, a transaction backed by a swap relying on payments by the
  Greek government. The downgrade of this transaction mirrors the
  Greek sovereign rating downgrade.

- Moody's placed on review for downgrade the rating of Ariadne
  S.A. Secured Notes, a transaction backed by Greek lottery
  receivables and a guarantee from the Greek government. The
  government guarantee would only be called to the extent that
  both the payments from the receivables and the liquidity reserve
  were insufficient to repay the notes. Moody's review will
  consider the re-assessment of the credit risk profile of Greek
  debt after the debt exchanges have been completed as well as the
  amount of receivable collections and the liquidity reserve.

-- TRANSACTIONS HIGHLY LINKED TO GREEK BANKS

Moody's placed four asset-backed transactions on review for
downgrade that are highly linked to either Piraeus Bank or Alpha
Bank AE (both rated B3, on review for downgrade), because their
issuer accounts, including reserve funds, are held at these banks.
Should the banks become insolvent, all sources of liquidity in
these transactions could become trapped in their insolvency
estate, creating immediate payment defaults and, potentially, more
severe losses.

Increased default expectations for the Greek banks will result in
increased default expectations for transactions highly linked to
these banks. Moody's review will consider the outcome of the Greek
bank rating review.

-- ALL OTHER GREEK STRUCTURED FINANCE TRANSACTIONS

The downgrade of Greek government debt will not affect other Greek
structured finance transaction ratings because the combination of
the announced EU support program and debt exchange proposals by
major financial institutions points to an orderly restructuring of
Greek government debt. Moody's stated on 10 June 2011 that the
orderly restructuring of Greek government debt would likely have
no further impact on Greek structured finance ratings, with the
exception of highly linked transactions.

Upon an orderly default of the Greek government, some temporary
disruption may occur and severe losses could arise. However,
Moody's has already reflected these extreme loss scenarios in the
current ratings of the notes.

PREVIOUS RATING ACTIONS AND PRINCIPAL METHODOLOGIES

The applicable principal methodologies for each asset class are
listed in the index of methodologies under the research and
ratings tab on Moodys.com.

Moody's methodology for rating Ariadne is primarily based on the
effective guarantee of the Greek government rather than on the
value of the lottery receivables backing the notes, but also
considers the benefit of the non-amortizing liquidity reserve.
Moody's methodology for rating Titlos considers a full linkage to
the rating of Greece.

LIST OF AFFECTED TRANSACTIONS BY RELEASING OFFICE

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom

Issuer: Axia III Finance Plc

A Certificate, B1 (sf) Placed Under Review for Possible
Downgrade; previously on Jun 10, 2011 Downgraded to B1 (sf)

Issuer: Praxis II Finance Plc

A Certificate, Ba3 (sf) Placed Under Review for Possible
Downgrade; previously on Jun 10, 2011 Downgraded to Ba3 (sf)

Issuer: EPIHIRO PLC

Class A Asset Backed Floating Rate Notes due January 2035 Notes,
Ba3 (sf) Placed Under Review for Possible Downgrade; previously
on July 1, 2011 Downgraded to Ba3 (sf)

Releasing Office:
Moody's France SAS
96 Boulevard Haussmann
75008 Paris
France

Issuer: Ariadne S.A. Secured Notes

A Notes, Caa1 (sf) Placed Under Review for Possible Downgrade;
previously on Jun 3, 2011 Downgraded to Caa1 (sf)

Issuer: Titlos plc

A Certificate, Downgraded to Ca (sf); previously on Jun 3, 2011
Downgraded to Caa1 (sf)

Issuer: KATANALOTIKA PLC

A Certificate, Ba3 (sf) Placed Under Review for Possible
Downgrade; previously on Jul 1, 2011 Downgraded to Ba3 (sf)


EMC VI-EUROPROP: Fitch Affirms 'CC' Ratings on Two Note Classes
---------------------------------------------------------------
Fitch Ratings has affirmed all EMC VI-Europrop's tranches:

   -- EUR353.7m class A (XS0301901657) affirmed at 'Asf'; Outlook
      revised to Negative

   -- EUR30m class B (XS0301902622) affirmed at 'BBBsf'; Outlook
      Negative

   -- EUR35m class C (XS0301903356) affirmed at 'Bsf'; Outlook
      Negative

   -- EUR30m class D (XS0301903513) affirmed at 'CCCsf'; Recovery
      Rating (RR) RR4

   -- EUR4m class E (XS0301903943) affirmed at 'CCsf'; RR6

   -- EUR6.6m class F (XS0301904248) affirmed at 'CCsf'; RR6

Fitch has affirmed all note classes as the securitized loans'
performance has been broadly in line with expectations. Given the
number of highly leveraged loans, losses are expected on the Class
D and E notes, and may reach the class F notes. Fitch-estimated
loan-to-value loan-to-value ratios (LTV) have remained relatively
stable at approximately 100% since the last rating action, in
November 2009.

About 57% of the portfolio (five loans with a EUR260 million
balance) has already matured or is due to mature in the next
twelve months. Apart from the Project Ash loan, Fitch believes
that all these loans will struggle to repay at maturity. The
Tshuva loan is due to mature in April 2012 but the borrower has
prepaid and funds will be distributed sequentially at the next
interest payment date.

With a total loan balance of EUR108.73 million, the Sunrise II
loan, secured over a portfolio of 47 German retail warehouses and
office, is the largest in the pool. Income has fallen across the
portfolio, and this fall is mirrored in occupancy trends, down to
84% from 99% at closing. A December 2010 valuation (EUR246.1
million) revealed a 21% market value decline since closing. The
borrower was unable to repay at maturity in July 2011 and the loan
was extended for twelve months subject to certain terms. EUR3.5
million of equity will be used to repay the loan, a full cash
sweep will be put in place and EUR40 million of asset sales have
been targeted. However, if carried out, the plan should increase
the likelihood of re-financing in twelve months' time, although it
is questionable whether the targeted sales are actually
achievable.

The Signac loan (EUR48.3 million) is secured by a five-storey
office building located in Gennevilliers, France. The borrower
failed to repay at maturity in July 2011 and the loan was
transferred into special servicing. With a further EUR13.5 million
of debt in the form of a B-note, refinancing the loan will be a
challenge for the borrower. Fitch estimates a securitized LTV in
excess of 100%.

The two Epic loans (Epic Rhino and Epic Horse) are secured by
German multi-family assets. Each portfolio was re-valued in 2011
and both now report LTVs of close to 100%. The updated valuations
are now closer to Fitch's estimated values for the collateral.
Both loans are in special servicing due to ongoing payment
shortfalls and the borrowers have been failing to supply the
special servicer with quarterly reporting.

EMC VI-Europrop is the securitization of eighteen commercial
mortgage loans originated by Citibank, N.A., London Branch and
Citibank International PLC. The collateral pool consists of 18
commercial mortgage loans with a current aggregate balance of
EUR459 million, secured by 125 properties located throughout
Germany and France (only one French loan).

Fitch will continue to monitor the performance of the transaction.


EUROPEAN LOAN: S&P Affirms 'D' Ratings on Three Note Classes
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Vulcan (European Loan Conduit No. 28) Ltd.'s Class C and D notes,
and affirmed its ratings on all other classes.

                            Ratings Lowered

"We have lowered our ratings on the class C and D notes to reflect
our view of the risks associated with the remaining loans in the
transaction," S&P related. These include:

    The Tishman Hamburg loan, for which the major tenant has given
    notice that it will vacate;

    The Doublon and PDF loans, which are approaching maturity;

    The Babcock loan, for which a significant level of leases are
    scheduled to expire around the time of loan maturity; and

    The Tishman German Office Portfolio (TGOP) loan, on which S&P
    continues to expect principal losses.

The Tishman Hamburg loan (7.5% of the pool) is secured by a single
office property in Hamburg.  The property served as the
headquarters for the real estate division of Union Asset
Management Holding AG. The tenant, however, has given notice that
it will vacate the premises in December 2011.

"Our analysis of the asset assumes that when the tenant vacates,
following a period of downtime, the borrower will re-let the space
at a rent slightly below the current rent. In addition, we assume
that there will be a level of vacancy that is consistent with
market vacancy at the property. While we do not expect the loan to
suffer losses, we note that it matures in 2014, and we will
continue to monitor both the borrower's ability to lease up the
space, and the rents it achieves on the space," S&P said.

"The Doublon loan (10.8% of the pool) matures in August 2011 and
we understand that the borrower has requested an extension. The
loan is secured by an office property completed in 1975 and
located two kilometers northeast of La Defense, Paris. The
property is currently 20% vacant," S&P related.

"Our view of the quality and location of the building, and our
view of achievable rents, lead us to believe that there could be
principal losses associated with this loan. We are of the view
that any losses would be limited to the class G notes, currently
rated 'D (sf)'," S&P stated.

The PDF loan (14.5% of the pool) is secured by eight office/light-
industrial assets throughout France. As of the May 2011 interest
payment date, vacancy in the portfolio has increased to 13% from
0% in May 2010. The loan matures in November 2011 and a
significant number of leases are scheduled to expire
within one year following loan maturity.

"Our analysis assumes the expiration of a portion of these leases,
and accounts for the potential rent that the properties could
achieve following such expiries. Although we believe that the
level of lease expirations could negatively affect the
marketability of the properties, based on our estimated
recovery value of the portfolio, we do not expect principal losses
on the loan," S&P said.

Similarly, the Babcock loan (4% of the pool), secured by 14 office
properties in France, faces risks associated with 56% of leases
scheduled to expire by loan maturity in 2013.

"Our valuation of the portfolio accounts for some of the leases
expiring and we have made assumptions regarding the rents that
these properties can achieve. Nonetheless, our analysis continues
to indicate that we do not expect principal losses on this loan,"
S&P related.

The TGOP (36% of the pool) is the largest loan in the transaction
and is secured by six properties in Germany. "In our July 2010
rating action (see 'Rating Lowered On Class E Notes In Vulcan
(European Loan Conduit No. 28)'s CMBS Due To Deteriorating
Performance,' published July 14, 2010), we indicated that we
expected principal losses associated with the loan that would not
be fully absorbed by classes F and G. We continue to expect losses
on this loan," S&P said.

The special servicing fees associated with specially serviced
loans, which rank senior to interest payments due on the notes,
are neither absorbed by class X, nor funded by servicer advances.
The fees therefore continue to cause interest shortfalls on the
classes E, F, and G notes.

"Because of our expectation of principal losses, together with the
continued interest shortfalls on classes E, F, and G, we have
affirmed our 'D (sf)' ratings on these classes. In light of our
2010 counterparty and supporting obligations, and consistent with
our rating action taken in May 2011 (see 'Ratings List Resolving
European Structured Finance Counterparty CreditWatch Placements-
May 13, 2011 Review,' published May 13, 2011), we have also
affirmed our 'A (sf)' ratings on classes A and B," S&P said.

Vulcan closed is a commercial mortgage-backed securities (CMBS)
transaction that closed in August 2007 and is backed by a pool of
13 loans secured against 61 commercial and residential properties
across Europe. The current reported loan (and note) balance is
EUR679.5 million. The largest loan in the pool is the TGOP loan,
which has a current balance of EUR244.9 million and accounts for
36% of the loan pool. Vulcan owns the senior-ranking portion of
the TGOP loan.

Ratings List

Vulcan (European Loan Conduit No. 28) Ltd.
EUR1,076.415 Million Commercial Mortgage-Backed Variable- and
Floating-Rate Notes

Class            Rating
            To            From

Ratings Lowered

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

Ratings Affirmed

A           A (sf)
B           A (sf)
E           D (sf)
F           D (sf)
G           D (sf)


PROMISE-I MOBILITY: Fitch Affirms 'CCC' Ratings on 8 Note Classes
-----------------------------------------------------------------
Fitch Ratings has upgraded Promise-I Mobility 2005-1 (2005-1) and
affirmed Promise-I Mobility 2005-2 (2005-2) and Promise-I Mobility
2006-1 (2006-1) notes:

Promise Mobility-I 2005-1

   -- EUR0.03m Class A+ (DE000A0D0HT6): upgraded to 'AAsf' from
      'Asf'; Outlook revised to Stable from Negative; Loss
      Severity Rating (LS) revised to 'LS-2' from 'LS-1'

   -- EUR27.8m Class A (DE000A0D0HU4): upgraded to 'BBBsf' from
      'BBsf'; Outlook revised to Stable from Negative and 'LS-3'

   -- EUR8.3m Class B (DE000A0D0HV2): upgraded to 'BBsf' from
      'Bsf'; Outlook revised to Stable from Negative and 'LS-5'

   -- EUR7.5m Class C (DE000A0D0HW0): upgraded to 'Bsf' from
      'CCCsf'; assigned Stable Outlook and 'LS-5'

   -- EUR5.3m Class D (DE000A0D0HX8): affirmed at 'CCCsf';
      assigned Recovery Rating (RR) of RR1

   -- EUR5.3m Class E (DE000A0D0HY6): affirmed at 'CCCsf';
      assigned RR1

Promise Mobility-I 2005-2

   -- EUR0.16m Class A+ (DE000A0GJ9A9): affirmed at 'Asf'; Outlook
      revised to Positive from Negative and LS revised to 'LS-2'
      from 'LS-1'

   -- EUR54.9m Class A (DE000A0GJ9B7): affirmed at 'BBsf'; Outlook
      revised to Positive from Negative; LS revised to 'LS-4' from
      'LS-3'

   -- EUR21.6m Class B (DE000A0GJ9C5): affirmed at 'Bsf' from
      'AA'; Outlook revised to Positive from Negative and 'LS-5'

   -- EUR22.5m Class C (DE000A0GJ9D3): affirmed at 'CCCsf';
      assigned RR2

   -- EUR21.6m Class D (DE000A0GJ9E1): affirmed at 'CCCsf';
      assigned RR2

   -- EUR14.4m Class E (DE000A0GJ9F8): affirmed at 'CCCsf';
      assigned RR3

Promise-I Mobility 2006-1

   -- EUR0.42m class A+ (DE000A0LDYH4): affirmed at 'Asf'; Outlook
      revised to Stable from Negative and 'LS-1'

   -- EUR67.2m class A (DE000A0LDYJ0): affirmed at 'BBsf'; Outlook
      revised to Stable from Negative and 'LS-4'

   -- EUR21.6m class B (DE000A0LDYK8): affirmed at 'Bsf'; Outlook
      revised to Stable from Negative and 'LS-5'

   -- EUR36m class C (DE000A0LDYL6): affirmed at 'CCCsf'; assigned
      RR1

   -- EUR46.8m class D (DE000A0LDYM4): affirmed at 'CCCsf';
      assigned RR3

   -- EUR10.8m class E (DE000A0LDYN2): affirmed at 'CCCsf';
      assigned RR3

The rating actions reflect the increased credit protection in all
three transactions as a result of amortization. The 2005-1
transaction has amortized to 20.9% and the 2005-2 transaction to
39.4% of the initial pool balance, thus increasing the credit
protection to the rated notes. The increase in credit protection
in the 2006-1 transaction is less substantial as the transaction
started amortizing by end of December 2010 with a current pool
factor of 85.2% of initial pool balance. Due to the short
weighted-average life of all three transactions and thus the fast
pool amortization, the agency expects the credit enhancement
levels to further increase. This is reflected in the revised
Outlooks.

The fast pool amortization in the 2005-1 and 2005-2 transactions
led to an increase in obligor concentrations. However, the notes'
current credit protection is sufficient to provide for a default
of a certain number of the largest obligors. The defaults in the
current portfolios increased to 12.9% in the 2005-1 and to 8.4% in
the 2005-2 transaction, both as a percentage of the current
outstanding pool balances. Due to the recently started
amortization, the pool composition of the 2006-1 transaction has
not changed significantly compared to the last rating action in
January 2010. The current defaults in the 2006-1 transaction are
2.2% of the outstanding pool balance from 1.2% at the last review.
In Fitch's view, the increased credit enhancement in all three
transactions is sufficient to provide for the increased defaults.

Fitch assigned RRs to all the notes rated 'CCCsf'. RRs are issued
on a scale of 'RR1' (highest) to 'RR6' (lowest) to denote the
range of recovery prospects of notes rated at or below 'CCCsf'.

Fitch has assigned an Issuer Report Grade (IRG) of two stars
("basic") to the transaction's publicly available reports. The
reporting is accurate and timely. While it contains various
stratifications regarding industries and obligors, the reporting
frequency is quarterly rather than monthly, thus preventing a
higher grade.

The Promise transactions are synthetic securitizations with
exposures to small- and medium-sized enterprises in Germany. The
reference pools were originated by IKB Deutsche Industriebank
Aktiengesellschaft (not rated) that bought protection under a bank
swap in respect of the reference portfolios from KfW.


WALTER BAU: Thai Gov't. to Pay EUR20MM Bond to Recover Royal Jet
----------------------------------------------------------------
Deutsche Presse Agentur reports that the Thai government will pay
a EUR20 million (US$28 million) bond to secure the release of a
royal jet that was impounded at a German airport last month.

As reported by the Troubled Company Reporter-Europe on Aug. 2,
2011, Bloomberg News related that Thailand's Crown Prince Maha
Vajiralongkorn will use his personal funds to recover an airplane
that was seized by German liquidators in Munich last month as part
of a bankruptcy dispute.  Walter Bau AG said last month that
Werner Schneider, the company's insolvency administrator, seized a
Boeing 737 belonging to the crown prince on July 11 to force
payment on a EUR30 million (US$43.2 million) claim against the
Thai state, Bloomberg recounted.  The crown prince "has no
connection with the dispute between the Thai government and Walter
Bau, and didn't cause the dispute," Bloomberg quoted the crown
prince's secretariat as saying in a statement released on Sunday.
"To avoid any impact to the good relationship between Thailand and
Germany and to end the dispute on good terms and in an expeditious
manner, the crown prince will provide his personal funds to end
the dispute."

                         About Walter Bau

Headquartered in Augsburg, Germany, Walter Bau AG --
http://www.walter-bau.de/-- is a construction management and
construction technology group in Europe.  It principal
activities include turnkey construction, building planning and
construction, civil engineering, utility constructions, traffic
infrastructure construction, and real estate.  Walter Bau once
ranked number fourth in the local construction market behind
Hochtief, Bilfinger Berger and Strabag.

Walter Bau declared insolvency in February 2005 after creditor
banks refused to approve its restructuring plan.  This denied
the company access to a EUR1.5 billion credit line.  In his
report to the creditors, Mr. Schneider blamed the group's demise
to management errors and the downturn in the construction
industry.


===========
G R E E C E
===========


DRYSHIPS INC: Inks Definitive Pact to Acquire OceanFreight
----------------------------------------------------------
DryShips Inc. and OceanFreight Inc. entered into a definitive
agreement for DryShips to acquire the outstanding shares of
OceanFreight for consideration per share of US$19.85, consisting
of US$11.25 in cash and 0.52326 of a share of common stock of
Ocean Rig UDW Inc., a global provider of offshore ultra deepwater
drilling services that is 78% owned by DryShips.  The Ocean Rig
shares that will be received by the OceanFreight shareholders will
be from currently outstanding shares held by DryShips.  Under the
terms of the transaction, the Ocean Rig shares will be listed on
the Nasdaq Global Select Market upon the closing of the merger.

Based on the July 25, 2011, closing price of 89.00 NOK ($16.44)
for the shares of Ocean Rig on the Norwegian OTC, the transaction
consideration reflects a total equity value for OceanFreight of
approximately US$118 million and a total enterprise value of
approximately US$239 million, including the assumption of debt.

The transaction has been approved by the Boards of Directors of
DryShips and OceanFreight, by the Audit Committee of the Board of
Directors of DryShips, which negotiated the proposed transaction
on behalf of DryShips, and by a Special Committee of independent
directors of OceanFreight established to negotiate the proposed
transaction on behalf of OceanFreight.

The transaction will allow DryShips to acquire high-quality,
modern drybulk vessels with attractive long-term charters.
OceanFreight owns a fleet of six vessels, including four Capesize
and two Panamax vessels with a weighted average age of six years
and combined deadweight tonnage of 859,622 tons and has contracted
to purchase five newbuilding Very Large Ore Carriers with a
combined deadweight tonnage of approximately one million tons
scheduled to be delivered in 2012 and 2013.  DryShips will also
benefit by assuming OceanFreight's attractively-priced credit
facilities.  Those facilities have an aggregate principal amount
of US$142.8 million, bear interest at Libor plus 250 basis points
and have a final maturity of October 2015.

George Economou, Chairman and CEO of DryShips, commented:

"We are pleased to announce the merger agreement with
OceanFreight.  This transaction provides DryShips with a unique
opportunity to consolidate the fragmented drybulk sector by
acquiring a high quality, modern fleet with long-term charters to
solid charterers.  As previously announced, we have a fleet
renewal plan that is being implemented by selling our older
vessels.  Given current freight market conditions, our preference
is to acquire younger vessels with medium to long-term charters
with moderate financing in place.  The merger with OceanFreight
offers us a unique opportunity to renew DryShips fleet, increase
our presence in the Capesize/VLOC sector and augment our fixed
revenues, and to do so at a low point in the cycle at what we
consider to be an attractive valuation.  We will achieve this
through minimal use of cash and no issuance of additional DryShips
equity while utilizing a mere 2.3% of our ownership stake in Ocean
Rig in a manner that will also increase its public float.  We will
continue to monitor developments in the shipping industry
selectively as the weak freight market may offer us further
strategic acquisition opportunities.

This merger is a testament to the strong position of DryShips and
our belief in the long-term prospects of the drybulk freight
market.  Pro forma for the merger, Dryships will own a fleet of
eighteen Capesize vessels, the largest among publicly traded
shipping companies."

Professor John Liveris, Chairman of the Board of Directors and
Special Committee of OceanFreight, commented:

"OceanFreight's merger with DryShips enables our shareholders to
realize the inherent value created from the significant
repositioning of the company's fleet and employment profile that
our management team implemented over the past two years.  This
value unfortunately was not reflected in our stock trading price.
Additionally, we are pleased to provide our shareholders with the
opportunity to participate in Ocean Rig, a growing company in the
ultra deep water drilling sector.  We believe that OceanFreight's
four-year journey in the public markets has reached a worthy
homeport."

The public shareholders of OceanFreight will receive the
consideration for their shares pursuant to a merger of
OceanFreight with a subsidiary of DryShips.  The completion of the
merger is subject to customary conditions, including clearance by
the U.S. Securities and Exchange Commission of a registration
statement to be filed by Ocean Rig to register the shares being
paid by DryShips in the merger and the listing of those shares on
the Nasdaq Global Select Market.  The cash portion of the
consideration is to be financed from DryShips' existing cash
resources and is not subject to any financing contingency.  The
merger is expected to close in the fourth quarter of 2011.

Simultaneously with the execution of the definitive merger
agreement, DryShips, entities controlled by Mr. Anthony Kandylidis
and OceanFreight, entered into a separate purchase agreement.
Under this agreement, DryShips will acquire from the entities
controlled by Mr. Kandylidis all their OceanFreight shares,
representing a majority of the outstanding shares of OceanFreight,
for the same consideration per share that the OceanFreight
stockholders will receive in the merger.  This acquisition is
scheduled to close four weeks from the execution of the merger
agreement, subject to satisfaction of certain conditions.
DryShips intends to vote the OceanFreight shares so acquired in
favor of the merger, which requires approval by a majority vote.
The Ocean Rig shares to be paid by DryShips to the entities
controlled by Mr. Kandylidis will be subject to a 6-month lock-up.

Evercore Partners is serving as financial advisors to DryShips in
connection with the transaction and Fried, Frank, Harris, Shriver
& Jacobson LLP is serving as DryShips' legal counsel.  Fearnley
Fonds ASA is serving as financial advisors to the Special
Committee of the OceanFreight Board of Directors and Seward &
Kissel LLP is serving as the Committee's legal counsel.

A full-text copy of the Form 8-K as filed with the SEC is
available for free at http://is.gd/2T9ZLl

                         About OceanFreight

OceanFreight is an owner and operator of drybulk vessels that
operate worldwide.  OceanFreight owns a fleet of six vessels,
comprised of six drybulk vessels (four Capesize and two Panamaxes)
and has contracted to purchase five newbuilding Very Large Ore
Carriers (VLOC) with a combined deadweight tonnage of about 1.9
million tons.  OceanFreight Inc.'s common stock is listed on the
NASDAQ Global Market where it trades under the symbol "OCNF".

                          About Ocean Rig

Ocean Rig is an international offshore drilling contractor
providing oilfield services for offshore oil and gas exploration,
development and production drilling, and specializing in the
ultra-deepwater and harsh-environment segment of the offshore
drilling industry.  Ocean Rig owns and operates 9 offshore ultra
deepwater drilling units, comprising of 2 ultra deepwater
semisubmersible drilling rigs and 7 ultra deepwater drillships, 5
of which remain to be delivered to the company during 2011 and
2013.  Ocean Rig's common stock currently trades on the OTC market
maintained by the Norwegian Association of Stockbroking Companies
under the symbol "OCRG."

                        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 Sept. 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".

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

In its audit report on the Company's financial statements for the
year ended Dec. 31, 2010, Deloitte, Hadjipavlou Sofianos &
Cambanis S.A., noted that the Company's inability to comply with
financial covenants under its original loan agreements as of
Dec. 31, 2009, its negative working capital position and other
matters raise substantial doubt about its ability to continue as a
going concern.

The Company's balance sheet at March 31, 2011, showed
US$6.99 billion in total assets and US$3.04 billion in total
liabilities.


* S&P Affirms 'CC/C' Counterparty Credit Ratings on 4 Greek Banks
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed at 'CCC/C' its long
and short-term counterparty credit ratings on four Greek banks --
National Bank of Greece S.A. (NBG), EFG Eurobank Ergasias S.A.
(EFG), Alpha Bank A.E. (Alpha), and Piraeus Bank S.A. (Piraeus).
"We have also affirmed our 'CCC-' issue ratings on their hybrid
securities," S&P said.

The outlooks on the four banks are negative.

"The ratings affirmations factor in our belief, based on the
European Council's public statement, that the four rated Greek
banks should be able to maintain unencumbered collateral eligible
for discounting at the European Central Bank (ECB) even if the
potential restructuring of Greece public debt would result
in one or more defaults by Greece under our criteria. It also
reflects our belief that, if the Institute for International
Finance (IIF) proposal goes through, according to the preliminary
terms it has disclosed (encompassing the 21% net present value
losses reduction) and assuming it would affect the whole stock of
Greek government debt, the potential impact from the restructuring
would in our view impair the banks' capital bases but would be
unlikely to result in any of them breaching minimum regulatory
capital ratios," S&P related.

"Our ratings continue to reflect our view that these four banks
are directly and significantly exposed to Greece's deteriorating
creditworthiness through their large portfolios of Greek
government bonds. They also incorporate our expectation that Greek
banks' asset quality and profitability will keep deteriorating
amid the increasingly difficult operating environment," S&P said.

The European Council announced a preliminary agreement on private
sector involvement in the proposed restructuring of Greek
government debt on July 21, 2011. "Based on our review, we have
concluded that the proposed restructuring of Greek government debt
would amount to a selective default of Greece under our rating
criteria (see 'Long-Term Sovereign Rating On Greece Cut To 'CC' On
Likely Default; Outlook Negative,' published July 27, 2011).
However, we do not believe the restructuring is likely to increase
the immediate risk of default by the Greek banks we rate on any of
their obligations -- as defined by our criteria -- beyond the
levels we have already factored into our ratings. At the current
rating level we are already taking into account our views of the
projected impact that the proposed restructuring of Greek
government debt may have on the rated Greek banks' financial
profiles, and particularly on their capital bases," S&P related.

"Domestic customers of Greek banks, in our view, have demonstrated
their sensitivity to signs of deterioration in the sovereign's
creditworthiness. This is suggested by the sizable deposits
outflows in the Greek financial system over the past 18 months. We
have also observed a recent acceleration in this trend. In May,
the outflow of private sector deposits was the highest since April
2010," S&P said.

It remains unclear what the potential implications of the proposed
debt exchange program will be on depositor behavior. "However, our
ratings on the four Greek banks incorporate our view that, within
the EU framework, the Greek authorities are 'supportive' of
Greece's financial system. Consequently, our assessments of the
stand-alone credit profiles (SACPs) of the Greek banks take
into account what we consider to be the benefits of a regulated
and supervised environment, with access to extraordinary
liquidity, such as that provided under the Greek government's
support package and by the ECB," S&P related.

"Based on the European Council's statement, we have incorporated
into our assessment of these four Greek banks' creditworthiness
the assumption that the EC will offer credit enhancement to
underpin the quality of collateral, so as to allow continued use
of that collateral for access to Eurosystem liquidity operations
by Greek banks even if Greek sovereign debt ratings are lowered to
'D'. Our ratings therefore factor in our belief that Greek banks
should be able to maintain unencumbered collateral eligible for
discounting at the ECB even if the potential restructuring of
Greece public debt would result in one or more defaults under our
criteria. We believe that existing unencumbered eligible assets at
March 30, 2011, and our estimate of amounts to be allocated
from the EUR30 billion liquidity buffer provided by the Greek
government under the third pillar of its support package available
to all Greek banks, would represent about 30% of domestic deposits
for EFG, Alpha, Piraeus, and NBG on March 30, 2011," S&P said.

"We are of the view that these four banks are directly and
significantly exposed to Greece's deteriorating creditworthiness
through their large portfolios of Greek government bonds,
accounting for more than 200% of Tier 1 capital for NBG and
Piraeus, about 170% for EFG, and about 80% for Alpha at year-end
2010. In our view, the impact of a potential government debt
restructuring on these banks' capital bases would depend largely
on the final conditions of the restructuring, as well as any
eventual regulatory forbearance. While the IIF proposal includes a
21% reduction in the net present value of the bonds involved in
the restructuring, we note that no agreement has been reached yet
on the proportion or on the type of debt instruments to be
included. We believe, however, that, if the IIF proposal goes
through, according to the preliminary terms it has disclosed
(encompassing the 21% net present value losses reduction) and
assuming it would affect the whole stock of Greek government debt,
the potential impact from the restructuring would in our view
impair the banks' capital bases but would be unlikely to result in
any of them breaching minimum regulatory capital ratios," S&P
stated.

"Our ratings also incorporate our expectation that Greek banks'
asset quality and profitability will keep deteriorating amid the
increasingly difficult operating environment. This is the result
of the prolonged and sharp economic recession in Greece which, in
our view, is likely to persist up to end-2012. In our opinion, it
is likely that the public perception of a potential government
debt restructuring could have a further negative effect on
private-sector borrowers' willingness to pay their debt,
particularly in the context of the Greek private sector's
comparatively weaker payment culture than in other developed
economies," S&P related.

"The negative outlooks reflect the possibility that we could
downgrade EFG, Alpha, Piraeus, or NBG if we believe any of them
will default on their obligations, as defined by our criteria. We
note that some of the risks that these four banks face and that
could precipitate default remain. Taking into consideration what
we see as a meaningful possibility of default, there is an
inherent negative CreditWatch associated with our 'CCC' long-term
ratings (see General Criteria 'How Standard & Poor's Uses Its
'CCC' Rating,' published Dec. 12, 2008)," S&P related.

"Consequently, we may lower the ratings on the four banks if we
perceive that rising pressure on their retail funding bases is
likely to lead to deposit outflows that could exceed the banks'
available collateral eligible for the ECB discount facility, while
at the same time liquidity from other extraordinary mechanisms
does not materialize. This could lead us to conclude that the four
banks are likely to default as defined under our criteria," S&P
said.

"We may also downgrade the four banks if we believe they are
likely to default, as defined by our criteria, due to any
developments associated with substantial impairment of their
solvency. This could stem from the materialization of any losses
that are higher than we currently anticipate on their large
holdings of Greek government bonds in the context of the potential
government debt restructuring, a sharp increase of credit losses
arising from lending portfolios, and/or significant earnings
deterioration. At this stage, the possible impact that the
potential haircut to Greek government bonds may have on banks'
solvency remains uncertain as it depends on the terms of the
final restructuring agreement," S&P stated.

"The outlooks could be revised to stable if the risks we see to
these four banks' financial profiles abate, and/or if these banks
benefit from the materialization of extraordinary support
mechanisms that we believe are likely to enable them to survive
without defaulting on any of their obligations. We note that the
European Council stated that adequate resources to recapitalize
Greek banks will be provided if needed; however, we will assess
the impact that such support may have on Greek banks'
creditworthiness when we have clarity on how and under what
circumstances it would materialize," S&P stated.


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


ALLIED IRISH: At Least EUR250-Mil. in Notes Accepted for Purchase
-----------------------------------------------------------------
Allied Irish Banks, p.l.c., on May 13, 2011, related that it was
inviting all holders of its notes to (i) tender any and all of the
Notes for purchase by the Bank for cash, and (ii) consent to
certain modifications of the terms of the Notes.

The AIB Offer was made upon the terms and subject to the
conditions contained in the tender and consent memorandum dated
May 13,  2011.

In conjunction with the invitation to tender any and all of the
Notes, the Bank invited holders of each Series of Notes to
consider, and, if thought fit, pass, the relevant Extraordinary
Resolution in relation to certain modifications of the terms of
each Series of the Notes as further described in the Tender and
Consent Memorandum.

The Bank announced the aggregate nominal amount of each Series of
Notes accepted for purchase pursuant to the relevant Offer.

                                            Aggregate Nominal
                                         Amount of Notes Accepted
Description of Notes                         for Purchase
--------------------                    ------------------------
EUR400,000,000 Subordinated Callable
Step-Up Floating Rate Notes due 2015           EUR47,936,000

GBP700,000,000 Callable Dated Subordinated
Fixed to Floating Rate Notes due July 2023     GBP35,350,000

EUR419,070,000 10.75 per cent. Subordinated
Notes due 2017                                EUR208,705,000

Payment of the Purchase Price in respect of Notes validly tendered
in the relevant Offer and accepted for purchase is expected to be
made on July 25, 2011.

A full-text copy of the filing is available for free at:

                       http://is.gd/TrruDA

                  About Allied Irish Banks, p.l.c.

Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland.  It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin.  AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).

Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.

As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares.  On
April 8, 2011, the NPRFC converted the total outstanding amount of
CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.

In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.

As reported by the Troubled Company Reporter on May 31, 2011,
KPMG, in Dublin, Ireland, noted that there are a number of
material economic, political and market risks and uncertainties
that impact the Irish banking system, including the Company's
continued ability to access funding from the Eurosystem and the
Irish Central Bank to meet its liquidity requirements, that raise
substantial doubt about the Company's ability to continue as a
going concern.

The Company reported a net loss of EUR10.16 billion on
EUR1.84 billion of interest income for 2010, compared with a net
loss of EUR2.33 billion on EUR2.87 billion of interest income for
2009.

The Company's balance sheet at Dec. 31, 2010, showed
EUR145.2 billion in total assets, EUR140.9 billion in total
liabilities, and stockholders' equity of EUR4.3 billion.


SUPERQUINN: Economy Minister Welcomes Musgrave's EUR10 Mil. Fund
----------------------------------------------------------------
BBC News reports that United Kingdom Economy Minister Arlene
Foster has welcomed the creation of a EUR10 million
(GBP8.8 million) fund to pay suppliers to Superquinn, which is
under receivership.

BBC News relates that about 15 companies in Northern Ireland, owed
an estimated GBP5 million by Superquinn, expressed fears they may
never get paid.

"For a lot of small suppliers they have the difficulty that,
either they can't obtain credit insurance, or they couldn't afford
credit insurance," BBC News quoted Ms. Foster as saying.  "So when
Superquinn went under they had real difficulties because their
cash flow was cut off," she added.

As reported in the Troubled Company Reporter-Europe on August 1,
2011, The Irish Times said Musgrave disclosed that a EUR10 million
fund will be established to reimburse certain creditors of
Superquinn.  "With the support fund in place, we now believe that
the receivership process is in the best interests of our
suppliers, colleagues and the many other partners of Superquinn
and are happy to support the process," Superquinn said in a
statement obtained by the news agency.  The syndicate of banks
that placed Superquinn into receivership also welcomed the
decision, according to Irish Times.  "The decision will protect
the Superquinn brand, its 2,800 staff and will ensure that the
business can continue trading as normal in all Superquinn
outlets," the syndicate banks said in a statement, Irish Times
related.  However, Irish Examiner noted that Agriculture Minister
Simon Coveney said that not every small business connected to
Superquinn will be covered and that the dispute surrounding the
supermarket chain had damaged the Irish food business.  "The fund
isn't going to cover all debts, all money owed, but it is going to
cover the majority of money owed through the process," he added.

Meanwhile, Kilkenny Advertiser relates that Fianna Fail
spokesperson on Small Business John McGuinness has said the
hundreds of small firms that supply goods to Superquinn
supermarkets must be protected.  "We cannot allow a situation
where more than 600 firms who supplied food and drink to
Superquinn are being left high and dry or are being offered paltry
deals as the receivers tackle the company's substantial debt,"
Kilkenny Advertiser quoted Deputy McGuinness as saying.  Kilkenny
Advertiser discloses that several Kilkenny small businesses were
affected by the announcement, which stated that the take-over
would not include payments due to suppliers to date.

                   EUR10MM Fund Availability
                 Contingent to Successful Buyout

The Online Meat Trades Journal relates that the availability of
the EUR10 million fund to Superquinn suppliers is contingent on
the successful purchase of the retailer by Musgrave.

The Online Meat Trades Journal notes that a statement from
Musgrave said:  "Musgrave believes that its agreement on terms to
purchase Superquinn, which is subject to regulatory approval, is
the best available option for the business.  The transaction will
secure the long term viability of the business, protect jobs and
ensure that Irish consumers can continue to enjoy the Superquinn
product offer.  It is anticipated that the creation of the fund
will result in all trade creditors whose losses are not covered by
credit insurance recovering between 65%-70% of their losses as a
result of the Superquinn receivership.  Payments out of the fund
will commence as soon as the purchase process which is subject to
Competition Authority approval is complete.  In the intervening
period, Musgrave continues to work closely with suppliers and is
providing them with the opportunity to access its SuperValu,
Centra and Daybreak stores."

                   Labor Court Orders Musgrave
                     to Pay 5% Wage Increase

Gavin Daly at The Sunday Business Post Online reports that the
Labor Court has ordered Musgrave, the Cork retailer that is paying
more than EUR200 million for Superquinn, to give a 5% pay rise to
warehouse workers after claiming inability to pay.

The Labor Court made the ruling earlier this month in a long-
running dispute between Musgrave and members of Siptu who work at
its chilled foods distribution centre in Clondalkin in west
Dublin, according to The Sunday Business Post Online.  The report
relates that several attempts to resolve the dispute, which
related to pay and changes to terms and conditions of employment,
had previously failed.

The Sunday Business Post Online discloses that Siptu had argued
that Musgrave was debt-free and highly profitable but was claiming
inability to pay increases which were owed to workers since 2009.
The report relates that the union claimed that other groups of
workers had been paid increases but the company was making it
difficult to reach agreement and refusing to negotiate on other
unresolved issues.

The Sunday Business Post Online discloses that Musgrave argued
that it was suffering from a fall-off in sales because of the
economic downturn and had to cut costs.  The report relates
Musgrave said that conceding to the Siptu pay claim could lead to
pay claims from other groups of workers.

The Labor Court recommended that Musgrave give a 5% pay rise in
three installments -- 2% from July 1 2011, a further 1.5% on
July 1 2012, and another 1.5% a year later, The Sunday Business
Post Online says.  The report notes that the court also
recommended that workers co-operate with work changes, including a
new voice technology system and quarterly reviews of rosters.

The Sunday Business Post Online adds that the court also said that
sick pay for workers should be brought in line with arrangements
elsewhere in the company, but that the minimum number of Sundays
worked by warehouse staff should increase from 13 to 19 a year.

Musgrave has agreed to be bound by the Labor Court recommendation.

                         About Superquinn

Superquinn is one of Ireland's largest domestic retailers.  It
employs around 2,800 people in 23 stores around the country.
Superquinn is owned by Select Retail Holdings, which bought the
retailer for EUR350 million in 2005.

                           *     *     *

As reported in the Troubled Company Reporter on July 20, 2011,
Reuters said RTE News reported Superquinn was put into
receivership by a syndicate of banks, including Allied Irish
Banks, Bank of Ireland, and National Irish Bank after building up
debts of more than EUR400 million (US$561 million).  Kieran
Wallace and Eamonn Richardson, representatives of professional
services firm KPMG, have been appointed as receivers to the firm.


* IRELAND: Allocated EUR1.5-Bil. in 2010 to Cover Loan Write-downs
------------------------------------------------------------------
Simon Carswell at The Irish Times reports that The National Asset
Management Agency's annual report published on Thursday showed
the agency set aside almost EUR1.5 billion last year to cover
further write-downs on EUR71 billion of loans it had acquired from
five banks.

NAMA made an operating profit of EUR305 million for the year, but
impairment losses were EUR1.485 billion for the 12-month period,
The Irish Times discloses.

In the first quarter of 2011, NAMA made an operating profit of
EUR91 million, The Irish Times notes.

Last year, NAMA acquired 11,500 loans of 850 debtors from the five
participating institutions, The Irish Times recounts.  It paid
EUR30.2 billion for nominal loan balances of EUR71.2 billion, a
58% discount, The Irish Times states.

It acquired further loans with a face value of EUR1.1 billion for
a purchase price of EUR300 million from Allied Irish Bank in
February, bringing the loan portfolio to EUR72.3 billion and the
total paid for the loans to EUR30.5 billion, according to The
Irish Times.


* IRELAND: 971 Firms Go Bust in First Seven Months in 2011
----------------------------------------------------------
Geoff Percival at Irish Examiner.com reports that new insolvency
figures show that July saw a 9% increase in the number of Irish
company failures when compared with June; with 152 companies going
bust.

InsolvencyJournal.ie also recorded a total of 971 failures for the
first seven months of the year, according to Irish Examiner.com.
The report relates that the latter figure represented a 6% year-
on-year increase.

"We're not surprised by the continuing high levels of
insolvencies, as weak consumer sentiment and the ongoing financial
uncertainty in the eurozone continue to have an adverse effect on
business," Irish Examiner.com quoted Ken Fennell of Kavanagh-
Fennell, the largest specialist insolvency practice in Ireland and
the compilers of the data, as saying.  "Banks and NAMA are
continuing to take enforcement action in an attempt to maximise
recoveries and we believe this trend will continue over the next
12 to 18 months. Overall, insolvencies remain stubbornly high and
our predictions for the year remain that there will be
approximately 1,600 insolvencies during 2011," Mr. Fennell added.

Irish Examiner.com notes that there were 39 receivership
appointments last month, a significant increase on the 19 recorded
in June.  The report relates that July also saw a 59% monthly rise
in insolvencies in the construction sector, which has suffered 254
company failures so far this year, accounting for 26% of all
insolvencies for the year, while the retail industry fared well
with a 48% decrease, from June 25 to July 13.

Meanwhile, Irish Examiner.com discloses that new data from
statistical providerVision-net.ie showed that 15% of all companies
that went out of business last year owing money are now back
trading as so-called 'phoenix companies' -- those which emerge
from the collapse of another firm, through insolvency.

Vision-net claims that 578 "phoenix" companies are now trading in
Ireland, Irish Examiner.com adds.


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


ARES FINANCE: Fitch Downgrades Ratings on Two Note Classes to 'D'
-----------------------------------------------------------------
Fitch Ratings has downgraded Ares Finance S.r.l.'s class D and E
floating-rate notes, due July 2011:

   -- EUR24.8m class D (XS01539650054): downgraded to 'Dsf' from
      'Csf'

   -- EUR15.0m class E: downgraded to 'Dsf' from 'Csf'

The downgrade reflects the coercive debt exchange dated July 18,
2011 with reference to the extension of the notes' legal final
maturity (from July 22, 2011 to July 22, 2015).

The default can be mainly attributed to the ongoing delays between
the final resolution of claims in the distribution phase and the
actual receipt of collections by the servicer. As previously
reported, this process has been remarkably inefficient throughout
the life of the transaction, and has slowed down the repayment of
the notes while increasing expenses, including servicer, legal and
asset manager fees.

Ares Finance 2 S.A. is a securitization of a portfolio of Italian
NPLs serviced and managed by Societa Gestione Crediti
S.r.l./Archon Group Italia S.r.l. (rated 'RSS2+'/'CSS2+'). As of
July 2011, the outstanding portfolio consisted of 2,158 unresolved
claims with a total GBV of EUR601.3 million. At closing, the GBV
of the pool was EUR1,287.8 million.


COMPAGNIE INDUSTRIALI: S&P Affirms Corp. Credit Ratings at 'BB/B'
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised to stable from negative
its outlook on Italy-based operating holding CIR-Compagnie
Industriali Riunite SpA (CIR). "In addition, we affirmed our 'BB'
long-term and 'B' short-term corporate credit ratings on CIR," S&P
related.

"The outlook revision to stable reflects our view that credit
measures, including the loan-to-value (LTV) ratio and coverage of
fixed charges by dividends, have upside potential as asset
valuation should benefit from subsidiaries' operating
improvements, and as total dividends upstreamed from subsidiaries
should increase," S&P said.

"We expect the company to maintain an intermediate financial risk
profile with an LTV ratio below 20%. However, changes in portfolio
characteristics or composition may trigger a revision of our
assessment of CIR's business risk profile. Rating pressure could
escalate if subsidiaries' operating performance and prospects for
dividend inflows to CIR were to deteriorate. In particular,
we will monitor the sustainability of L'Espresso's cost
reductions, Sorgenia's actual performance compared with its
business plan, Sogefi's order book, and the integration of Mark IV
Syst-mes Moteurs. An upgrade seems highly remote to us at this
stage, but could materialize if the portfolio's diversity or asset
quality were to strengthen markedly," S&P related.

"The ratings on CIR reflect our view of the weak credit quality of
CIR's portfolio of listed and financial investments, and of its
limited leverage. On March 31, 2011, the estimated market value of
CIR's portfolio was about EUR1.8 billion. Outstanding parent
company net debt was about EUR0.2 billion, resulting in an LTV
ratio of 11.7%," S&P said.


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


KAZKOMMERTSBANK: Completes Unit's Voluntary Liquidation
-------------------------------------------------------
Kazkommertsbank announced on Tuesday the completion of voluntary
liquidation of its subsidiary, Kazkommerts RFDA LLP.

On Feb. 6, 2009, the Board of Directors of Kazkommertsbank
approved voluntary liquidation of its subsidiary Kazkommerts RFCA
LLP.  Following necessary legal formalities, on July 26, 2011, the
Committee on Development of the Regional Financial District Almaty
under the National Bank of Kazakhstan with its Decree #6 has
registered termination of activities of Kazkommerts RFDA LLP due
to voluntary liquidation.  According to the Decree, Kazkommerts
RFDA LLP was excluded from the state register of legal entities
and state register of participants of the Regional Financial
District Almaty.

                       About Kazkommertsbank

Kazakhstan-based Kazkommertsbank AO a.k.a Kazkommertsbank JSC
(KAS:KKGB) -- http://www.kkb.kz/-- is a commercial bank engaged
in the provision of financial and banking services for corporate
and individual clients.  The Bank offers such services as the
opening and maintaining of bank accounts, operations with
securities, debit and credit cards and safety deposit boxes,
currency exchange, lending, leasing and investment services,
Internet banking, financial intermediation, insurance services,
derivative instruments, guarantees and other financial services.
As of December 31, 2008, the Bank had 23 branches located in
Kazakhstan, one representative office located in London, the
United Kingdom, as well as 13 subsidiaries and one affiliated
company located in Kazakhstan, Russia, Tadzhikistan, and the
Netherlands.

                     *     *     *

As reported in the Troubled Company Reporter-Europe on May 20,
2011, Moody's Investors Service has assigned (P)B2 senior
unsecured debt rating to Kazkommertsbank's US$2 billion medium-
term notes program.

At the same time, Moody's assigned a B2 long-term foreign-currency
senior unsecured debt rating to the first drawdown of US$300
million. The notes have a seven-year maturity. The outlook on the
program and the issued senior unsecured notes is negative, in line
with the negative outlook on the bank's debt ratings.

Moody's said the B2 rating assigned to the notes is based on the
fundamental credit quality of Kazkommertsbank, reflected by its E+
bank financial strength rating (BFSR), mapping to B2 on the long-
term rating scale. Moody's assumed no systemic support probability
for the bank's debt ratings and consequently there is no notching
uplift for the ratings on the senior unsecured notes.


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


GREEN PARK: Moody's Upgrades Rating on Class R Notes to 'Ba3'
-------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Green Park CDO B.V.:

Issuer: Green Park CDO B.V

EUR24.5M Class B Senior Secured Floating Rate Notes due 2023
Notes, Upgraded to Aa3 (sf); previously on Jun 22, 2011 A2 (sf)
Placed Under Review for Possible Upgrade

EUR27.8M Class C Senior Secured Floating Rate Notes due 2023
Notes, Upgraded to A3 (sf); previously on Jun 22, 2011 Baa3 (sf)
Placed Under Review for Possible Upgrade

EUR28.7M Class D Senior Secured Floating Rate Notes due 2023
Notes, Upgraded to Ba1 (sf); previously on Jun 22, 2011 B1 (sf)
Placed Under Review for Possible Upgrade

EUR14.6M Class E Senior Secured Floating Rate Notes due 2023
Notes, Upgraded to B1 (sf); previously on Jun 22, 2011 Caa2 (sf)
Placed Under Review for Possible Upgrade

EUR4M Class R Combination Notes due 2023 Notes, Upgraded to Ba3
(sf); previously on Jun 22, 2011 B3 (sf) Placed Under Review for
Possible Upgrade

EUR4M Class S Combination Notes due 2023 Notes, Upgraded to A3
(sf); previously on Jun 22, 2011 Baa2 (sf) Placed Under Review
for Possible Upgrade

EUR7M Class T Combination Notes due 2023 Notes, Upgraded to Baa3
(sf); previously on Jun 22, 2011 Ba2 (sf) Placed Under Review for
Possible Upgrade

EUR10M Class U Combination Notes due 2023 Notes, Upgraded to A3
(sf); previously on Jun 22, 2011 Baa2 (sf) Placed Under Review
for Possible Upgrade

EUR14M Class V Combination Notes due 2023 Notes, Upgraded to Baa1
(sf); previously on Jun 22, 2011 Baa3 (sf) Placed Under Review
for Possible Upgrade

The ratings of the Combination Notes address the repayment of the
Rated Balance on or before the legal final maturity. For Classes T
and V, the 'Rated Balance' is equal at any time to the principal
amount of the Combination Note on the Issue Date increased by the
Rated Coupon of 0.25% and 1.5% per annum respectively, accrued on
the Rated Balance on the preceding payment date minus the
aggregate of all payments made from the Issue Date to such date,
either through interest or principal payments. For Classes R, S,
and U, which do not accrue interest, the 'Rated Balance' is equal
at any time to the principal amount of the Combination Note on the
Issue Date minus the aggregate of all payments made from the Issue
Date to such date, either through interest or principal payments.
The ratings are not an opinion about the ability of the issuer to
pay interest. The Rated Balance may not necessarily correspond to
the outstanding notional amount reported by the trustee.

RATINGS RATIONALE

Green Park CDO B.V., issued in December 2006, is a single currency
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly European leveraged loans. The portfolio is managed by
Blackstone Debt Advisors L.P. This transaction will be in
reinvestment period until March 18, 2013. The portfolio is
predominantly composed of senior secured loans.

According to Moody's, the rating actions taken on the notes are
primarily a result of applying Moody's revised CLO assumptions
described in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011.

The actions reflect key changes to the modeling assumptions, which
incorporate (1) a removal of the temporary 30% default probability
macro stress implemented in February 2009, (2) increased BET
liability stress factors as well as (3) change to a fixed recovery
rate modeling framework. Additional changes to the modeling
assumptions include (1) standardizing the modeling of collateral
amortization profile, and (2) adjustments to the equity cash-flows
haircuts applicable to combination notes.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as the portfolio par amount, WARF,
diversity score, and weighted average recovery rate, may be
different from the trustee's reported numbers. In its base case,
Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of EUR438.4 million,
defaulted par of EUR4.5 million, a weighted average default
probability of 22.74% (consistent with a WARF of 2845), a weighted
average recovery rate upon default of 46.29%, and a diversity
score of 40. The default probability is derived from the credit
quality of the collateral pool and Moody's expectation of the
remaining life of the collateral pool. The average recovery rate
to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool. For an Aaa
liability target rating, Moody's assumed that 90.7% of the
portfolio exposed to senior secured corporate assets would recover
50% upon default, while the remainder non first-lien loan
corporate assets would recover 10%. In each case, historical and
market performance trends and collateral manager latitude for
trading the collateral are also relevant factors. These default
and recovery properties of the collateral pool are incorporated in
cash flow model analysis where they are subject to stresses as a
function of the target rating of each CLO liability being
reviewed.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by uncertainties of credit
conditions in the general economy. CDO notes' performance may also
be impacted by 1) the manager's investment strategy and behavior
and 2) divergence in legal interpretation of CDO documentation by
different transactional parties due to embedded ambiguities.

Sources of additional performance uncertainties are:

1) Moody's also notes that around 43.7% of the collateral pool
   consists of debt obligations whose credit quality has been
   assessed through Moody's credit estimates.

2) Weighted average life: The notes' ratings are sensitive to the
   weighted average life assumption of the portfolio, which may be
   extended due to the manager's decision to reinvest into new
   issue loans or other loans with longer maturities and/or
   participate in amend-to-extend offerings. Moody's tested for a
   possible extension of the actual weighted average life in its
   analysis.

3) Other collateral quality metrics: The deal is allowed to
   reinvest and the manager has the ability to deteriorate the
   collateral quality metrics' existing cushions against the
   covenant levels. Moody's assumed the lower of reported and
   covenanted values for weighted average rating factor and
   diversity score. However, as part of the base case, Moody's
   considered spread and coupon levels higher than the covenant
   levels due to the large difference between the reported and
   covenant levels.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modeled the transaction using the Binomial Expansion
Technique, as described in Section 2.3.2.1 of the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology published in June 2011.  The cash flow model used for
this transaction, whose description can be found in the
methodology listed above, is Moody's CDOEdge model.

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio. All information
available to rating committees, including macroeconomic forecasts,
input from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, may influence the final rating decision.


INVESCO CONISTON: Moody's Lowers Rating on Class F Notes to 'Caa1'
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Invesco Coniston B.V.:

Issuer: MORGAN STANLEY INVESTMENT MANAGEMENT CONISTON B.V.

   -- EUR56.7M Class A2 Senior Floating Rate Notes due 2024 Notes,
      Upgraded to Aa1 (sf); previously on Jun 22, 2011 Aa3 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR24.6M Class B Deferrable Interest Floating Rate Notes due
      2024 Notes, Upgraded to A1 (sf); previously on Jun 22, 2011
      Baa2 (sf) Placed Under Review for Possible Upgrade

   -- EUR24M Class C Deferrable Interest Floating Rate Notes due
      2024 Notes, Upgraded to Baa2 (sf); previously on Jun 22,
      2011 Ba3 (sf) Placed Under Review for Possible Upgrade

   -- EUR17.6M Class D Deferrable Interest Floating Rate Notes due
      2024 Notes, Upgraded to Ba1 (sf); previously on Jun 22, 2011
      B3 (sf) Placed Under Review for Possible Upgrade

   -- EUR19.6M Class E Deferrable Interest Floating Rate Notes due
      2024 Notes, Upgraded to B2 (sf); previously on Jun 22, 2011
      Ca (sf) Placed Under Review for Possible Upgrade

   -- EUR6.4M Class F Deferrable Interest Floating Rate Notes due
      2024 Notes, Upgraded to Caa1 (sf); previously on Jun 22,
      2011 Ca (sf) Placed Under Review for Possible Upgrade

   -- EUR25M Class S Combination Notes due 2024 Notes, Withdrawn
      (sf); previously on Aug 30, 2007 Assigned Aaa (sf)

RATINGS RATIONALE

Invesco Coniston B.V. issued in August 2007, is a single currency
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly high yield European loans. The portfolio is managed by
Invesco Asset Management. This transaction will be in reinvestment
period until July 30, 2013. Current portfolio is predominantly
composed of senior secured loans.

According to Moody's, the rating actions taken on the notes are
primarily a result of applying Moody's revised CLO assumptions
described in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011. The actions also reflect
consideration of an increase in the transaction's
overcollateralization ratios since the rating action in October
2009.

Moody's has also withdrawn the rating of the Class S Combination
notes as they have been split back into their underlying
components and are therefore no longer outstanding.

The actions reflect key changes to the modelling assumptions,
which incorporate (1) a removal of the temporary 30% default
probability macro stress implemented in February 2009, (2)
increased BET liability stress factors as well as (3) change to a
fixed recovery rate modelling framework. Additional changes to the
modelling assumptions include (1) standardizing the modelling of
collateral amortization profile and (2) changing certain credit
estimate stresses aimed at addressing time lags in receiving
information required for credit estimate updates.

The overcollateralization ratios of the rated notes have also
improved since the rating action in August 2009. According to the
trustee latest report dated 30 June 2011, the reported Class A,
Class B, Class D, Class D, Class E and Class F
overcollateralization ratios are 141.39%, 129.55%, 119.93%,
113.69%, 107.45% and 105.92%, respectively, versus June 2009
reported levels (where the August 2009 rating actions were based
on) of 135.36%, 124.56%, 115.56%, 109.74%, 103.92% and 102.15%,
respectively, and all related overcollateralization tests are
currently in compliance. Moody's also notes that the WARF movement
has been stable compared to the last rating action. However, the
reported WARF understates the actual improvement in credit quality
because of the technical transition related to rating factors of
European corporate credit estimates, as announced in the press
release published by Moody's on 1 September 2010. Currently, there
is no defaulted assets in the portfolio.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as the portfolio par amount, WARF,
diversity score, and weighted average recovery rate, may be
different from the trustee's reported numbers. In its base case,
Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of EUR 391.6million,
defaulted par of EUR 0million, a weighted average default
probability of 21.2% (consistent with a WARF of 2951) a weighted
average recovery rate upon default of 44.05% and a diversity score
of 39.The default probability is derived from the credit quality
of the collateral pool and Moody's expectation of the remaining
life of the collateral pool. The average recovery rate to be
realized on future defaults is based primarily on the seniority of
the assets in the collateral pool. For a Aaa liability target
rating, Moody's assumed that 84.42% of the portfolio exposed to
senior secured corporate assets would recover 50% upon default,
while the remainder non first-lien loan corporate assets would
recover 10%. In each case, historical and market performance
trends and collateral manager latitude for trading the collateral
are also relevant factors. These default and recovery properties
of the collateral pool are incorporated in cash flow model
analysis where they are subject to stresses as a function of the
target rating of each CLO liability being reviewed.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy (17.36% of the portfolio
assets are exposed to Portugal, Italy Greece, Spain or Ireland)
and 2) the large concentration of speculative-grade debt maturing
between 2012 and 2014 which may create challenges for issuers to
refinance. CDO notes' performance may also be impacted by 1) the
manager's investment strategy and behavior and 2) divergence in
legal interpretation of CDO documentation by different
transactional parties due to embedded ambiguities.

Sources of additional performance uncertainties are:

1) Weighted average life: The notes' ratings are sensitive to the
   weighted average life assumption of the portfolio, which may be
   extended due to the manager's decision to reinvest into new
   issue loans or other loans with longer maturities and/or
   participate in amend-to-extend offerings.

2) Other collateral quality metrics: The deal is allowed to
   reinvest and the manager has the ability to deteriorate the
   collateral quality metrics' existing cushions against the
   covenant levels. Moody's analyzed the impact of assuming lower
   of reported and covenanted values for weighted average spread,
   and diversity score.

3) Credit estimate concentration: Around 61.3% of the current
   collateral pool consists of debt obligations whose credit
   quality has been assessed through Moody's credit estimates.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modelled the transaction using the Binomial Expansion
Technique, as described in Section 2.3.2.1 of the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology published in June 2011.

The cash flow model used for this transaction, whose description
can be found in the methodology listed above, is Moody's EMEA
Cash-Flow model.

In addition to the quantitative factors that are explicitly
modelled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio. All information
available to rating committees, including macroeconomic forecasts,
input from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, may influence the final rating decision.


QUEEN STREET: Moody's Lowers Rating on Class E Notes to 'Ba3'
-------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Queen Street CLO II B.V.:

Issuer: Queen Street CLO II B.V.

   -- EUR34.875M Class B Senior Secured Floating Rate Notes due
      2024, Upgraded to A1 (sf); previously on Jun 22, 2011 Baa1
      (sf) Placed Under Review for Possible Upgrade

   -- EUR38.25M Class C Senior Secured Deferrable Floating Rate
      Notes due 2024, Upgraded to Baa2 (sf); previously on Jun 22,
      2011 Ba3 (sf) Placed Under Review for Possible Upgrade

   -- EUR16.875M Class D Senior Secured Deferrable Floating Rate
      Notes due 2024, Upgraded to Ba1 (sf); previously on Jun 22,
      2011 B3 (sf) Placed Under Review for Possible Upgrade

   -- EUR18M Class E Senior Secured Deferrable Floating Rate Notes
      due 2024, Upgraded to Ba3 (sf); previously on Jun 22, 2011
      Caa3 (sf) Placed Under Review for Possible Upgrade

   -- EUR59.85M Class A2 Senior Secured Floating Rate Notes due
      2024, Upgraded to Aa1 (sf); previously on Jun 22, 2011 A1
      (sf) Placed Under Review for Possible Upgrade

   -- EUR14M Class X Combination Notes due 2024, Withdrawn (sf);
      previously on Jun 22, 2011 Ba3 (sf) Placed Under Review for
      Possible Upgrade

RATINGS RATIONALE

Queen Street CLO II B.V., issued in June 2007, is a single
currency Collateralised Loan Obligation ("CLO") backed by a
portfolio of mostly high yield European loans. The portfolio is
managed by Indicus Investment Management Ltd. This transaction
will be in reinvestment period until August 2013. It is
predominantly composed of senior secured loans.

According to Moody's, the rating actions taken on the notes are
primarily a result of applying Moody's revised CLO assumptions
described in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011.

The actions reflect key changes to the modeling assumptions, which
incorporate (1) a removal of the temporary 30% default probability
macro stress implemented in February 2009, (2) increased BET
liability stress factors as well as (3) change to a fixed recovery
rate modeling framework. Additional changes to the modeling
assumptions include standardizing the modeling of collateral
amortization profile.

Moody's has also withdrawn the rating of the Class X Combination
notes as they have been split back into their underlying
components and are therefore no longer outstanding.

Moody's also notes that the performance of this transaction has
been stable since the last rating action in November 2009.
Defaulted securities total about EUR7 million of the underlying
portfolio compared to EUR12 million in October 2009. The
overcollateralization ratios of the rated notes have also been
stable. In particular, the Class A/B, Class C, Class D and Class E
overcollateralization ratios are reported at 129.62%, 116.31%,
111.26% and 106.35%, respectively, versus October 2009 levels of
130.41%, 117.02%, 111.94% and 107.00%, respectively, and all
related overcollateralization tests have been always in compliance
since closing.

As of the latest trustee report dated June 2011, the WARF is
currently 2724 compared to 2663 in the October 2009 report. The
change in reported WARF understates the actual credit quality
improvement because of the technical transition related to rating
factors of European corporate credit estimates, as announced in
the press release published by Moody's on 1 September 2010.

Moody's also notes that the transaction is exposed to a
significant concentration in mezzanine and junior CLO tranches in
the underlying portfolio, which have been placed under review for
possible upgrade. Based on the latest trustee report, CLO
Securities currently held in the portfolio total about EUR22
million, accounting for approximately 5.03% of the collateral
balance.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as the portfolio par amount, WARF,
diversity score, and weighted average recovery rate, may be
different from the trustee's reported numbers. In its base case,
Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of EUR436 million,
defaulted par of EUR5.8 million, a weighted average default
probability of 22.55% (consistent with a WARF of 2766), a weighted
average recovery rate upon default of 44.17%, and a diversity
score of 33. The default probability is derived from the credit
quality of the collateral pool and Moody's expectation of the
remaining life of the collateral pool. The average recovery rate
to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool. For a Aaa
liability target rating, Moody's assumed that 84% of the portfolio
exposed to senior secured corporate assets would recover 50% upon
default, while the remainder non first-lien loan corporate assets
would recover 10%. In each case, historical and market performance
trends and collateral manager latitude for trading the collateral
are also relevant factors. These default and recovery properties
of the collateral pool are incorporated in cash flow model
analysis where they are subject to stresses as a function of the
target rating of each CLO liability being reviewed.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by (1) uncertainties of
credit conditions in the general economy and (2) the large
concentration of speculative-grade debt maturing between 2012 and
2014 which may create challenges for issuers to refinance. CDO
notes' performance may also be impacted by (1) the manager's
investment strategy and behavior and (2) divergence in legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Sources of additional performance uncertainties are:

(1) Moody's also notes that around 56% of the collateral pool
    consists of debt obligations whose credit quality has been
    assessed through Moody's credit estimates. Large single
    exposures to obligors bearing a credit estimate have been
    subject to a stress applicable to concentrated pools as per
    the report titled "Updated Approach to the Usage of Credit
    Estimates in Rated Transactions" published in October 2009.

(2) Recovery of defaulted assets: Market value fluctuations in
    defaulted assets reported by the trustee and those assumed to
    be defaulted by Moody's may create volatility in the deal's
    overcollateralization levels. Further, the timing of
    recoveries and the manager's decision to work out versus sell
    defaulted assets create additional uncertainties. Moody's
    analyzed defaulted recoveries assuming the lower of the market
    price and the recovery rate in order to account for potential
    volatility in market prices.

(3) Weighted average life: The notes' ratings are sensitive to the
    weighted average life assumption of the portfolio, which may
    be extended due to the manager's decision to reinvest into new
    issue loans or other loans with longer maturities and/or
    participate in amend-to-extend offerings. Moody's tested for a
    possible extension of the actual weighted average life in its
    analysis.

(4) Other collateral quality metrics: The deal is allowed to
    reinvest and the manager has the ability to deteriorate the
    collateral quality metrics' existing cushions against the
    covenant levels. Moody's analyzed the impact of assuming lower
    of reported and covenanted values for weighted average rating
    factor, weighted average spread, and diversity score

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modeled the transaction using the Binomial Expansion
Technique, as described in Section 2.3.2.1 of the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology published in June 2011.

The cash flow model used for this transaction, whose description
can be found in the methodology listed above, is Moody's CDOEdge
model.

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record, and
the potential for selection bias in the portfolio. All information
available to rating committees, including macroeconomic forecasts,
input from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, may influence the final rating decision.


=============
R O M A N I A
=============


* ORADEA: Fitch Affirms Long-Term Currency Ratings at 'B+'
----------------------------------------------------------
Fitch Ratings has revised the Romanian Metropolitan Area of
Oradea's (OMA) Outlooks to Positive from Stable. At the same time,
the agency has affirmed the Long-term foreign and local currency
ratings at 'B+' and the Short-term foreign currency rating at 'B'.

The Outlook revision follows Romania's overall improvement
following the financial crisis and the recovery of the economy,
which led to an upgrade of its ratings. In Fitch's view, this
should contribute positively to the creditworthiness of the
Romanian subnationals and the members of the OMA in particular.
This was reflected in the upgrade of the City of Oradea's Long-
term foreign currency rating to 'BBB-' from 'BB+', and Short-Term
foreign currency rating to 'F3' from 'B' on July 7, 2011.

This will positively affect the ability of OMA's members to ensure
sustainability of contribution payments, notably that of Oradea,
which contributed about 90% of these payments in 2010. The ratings
also take into account OMA's weak budgetary development in 2010,
which could recover during 2011, limited revenue flexibility and
small budget size.

A recovery of the budgetary performance back to the levels
achieved in 2005-2009, when the OMA built up a sound cash position
and improved collection rates from the members could trigger a
positive rating action. A clear commitment from Bihor County to
support the obligations of OMA's members, for example in the form
of a guarantee, would also be rating positive.

After a good budgetary performance in 2005-2009 and an improved
cash position, operating performance deteriorated in 2010 and the
OMA reported an operating and overall deficit and a weakened cash
position for the first time. This was due to lower contribution
payments, increased personnel costs from higher social
contribution payments following a nationwide directive, and
expertise and consultancy costs paid in 2010 for the
implementation of EU projects which will be repaid by the EU in
2011.

OMA's limited budget size, with total revenue of just RON1.69
million in 2010, is a rating constraint, but this is mitigated by
OMA's still adequate liquidity position, and a large share of
receivables, which should together cover the association's
operating expenditure.

Romania's highly centralized budgetary system ensures adequate
support and control from the central government, as the latter
supervises the local governments' accounts and financial position,
including debt approval. Oradea's ongoing support and strict
willingness to pay its annual contributions is ensured by Oradea's
mayor's statement on OMA's importance to the economic and
infrastructure development and improvement of the city and
associated communes.

OMA was debt free at end-2010 and has no intention to contract any
debt. Its ability to take on debt is limited by its low revenue
flexibility: 95% of operating revenue is based on contributions
from its members and about 88% of revenue comes from solely from
Oradea. OMA's credit profile is therefore linked to that of the
city and the upgrade of Oradea's ratings is positive for OMA's
ratings.

OMA was founded in 2005 as an association of nine (now 12) local
authorities to implement common projects for the economic and
infrastructural development of the metropolitan area. OMA's
population is about 250,840, of which almost 205,000 are located
in Oradea.


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


CONTINENT AIRLINES: Collapse Blamed on Unauthorized Plane Purchase
------------------------------------------------------------------
Itar-Tass reports that a source in the Federal Agency for Air
Transportation (Rosaviatsia) on Monday said the Continent Airlines
went bankrupt because of the purchase by its director-general
Vladimir Krasilnikov of several planes with the airlines' proceeds
while having no consent of the main shareholder.

"Krasilnikov, the director-general of the Continental airlines,
who owns 25% of the airlines' shares, bought in June several
Tu-154M planes with funds from the airlines' proceeds for the Avia
Mir Leasing he co-owns with his wife.  According to preliminary
information, he made the purchase without the consent of the other
shareholder who has 75% of the airlines' shares," Itar-Tass quotes
the source as saying.

According to Rosaviatsia, this resulted in a considerable part of
the gain from the sale of air tickets being spent on the purchase
of the aircraft to become Krasilnikov's property, Itar-Tass notes.
This caused a gap between the airlines' revenues and expenditures
and actually brought on the company's bankruptcy, Itar-Tass
states.

After looking into numerous cancellations of the flights by the
Continent airlines, the Investigation Committee of the Russian
Federation instituted criminal proceedings for swindling by the
chief of the airlines and Rosaviatsia officials, Itar-Tass
relates.

Itar-Tass notes sources in Rosaviatsia said, however, that the
planes had been purchased after Rosaviatsia territorial department
investigated the airlines' financial and economic state in April
2011.  The agency, as cited by Itar-Tass, said the interpellation
from the Moscow interregional investigation agency on the
transport came on Monday.

After Rosaviatsia annulled the certificate for the operation of
the Continent airlines, it was on the brink of bankruptcy and ran
the debt of many millions, Itar-Tass discloses.  The company
cancelled flights from July 30.  Sixty-nine flights that could
have carried over 3,000 passengers were cancelled all over the
country between July 29 and 31, Itar-Tass recounts.


SB BANK: Moody's Affirms 'B3' Long-Term Deposit & Debt Ratings
--------------------------------------------------------------
Moody's Investors Service has affirmed SB Bank's B3 long-term
local and foreign-currency deposit and long-term local-currency
senior unsecured debt ratings, its standalone E+ bank financial
strength rating (BFSR) and Not Prime short-term bank deposit
ratings.

Concurrently, Moody's Interfax Rating Agency has affirmed SB
Bank's Baa2.ru long-term national-scale credit rating (NSR).
Moscow-based Moody's Interfax is majority owned by Moody's, a
leading global rating agency. The outlook on the long-term global
scale ratings is stable, whilst the NSR carries no specific
outlook.

Moody's affirmation of the bank's ratings is largely based on SB
Bank's audited financial statements for 2010 prepared under IFRS,
as well as SB Bank's unaudited regulatory reports for Q1 2011.

Ratings Rationale

The affirmation of SB Bank's ratings reflects stabilization in the
bank's financial performance, including (i) its acceptable
profitability, with RoAA rising to 1.54% at year-end 2010 from
0.1% at year-end 2009; (ii) adequate and stable capitalization,
with the equity-to-assets ratio averaging 14% over the past four
years; and (iii) a relatively low level of problem loans with non-
performing loans (NPLs) and restructured loans together accounting
for 6.3% of the gross loans at year-end 2010.

However, the ratings affirmation also takes into account the
bank's continued high dependence on relatively short-term market
funding, which accounts for around half of its total funding and
creates substantial refinancing risks. Another rating constraint
is the high level of market risk stemming from significant
securities investments that made up 30% of the bank's total assets
at year-end 2010.

Previous Rating Actions And Principal Methodologies

The principal methodologies used in 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 Moscow, Russia, SB Bank reported total assets of
USD1.28 billion, shareholders equity of USD189 million and net
income of USD19 million at year-end 2010, according to the bank's
audited IFRS financial statements.

Moody's Interfax Rating Agency's National Scale Ratings (NSRs) are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".ru" for Russia. For further information
on Moody's approach to national scale ratings, please refer to
Moody's Rating Implementation Guidance published in August 2010
entitled "Mapping Moody's National Scale Ratings to Global Scale
Ratings."

                 About Moody's And Moody's Interfax

Moody's Interfax Rating Agency (MIRA) specializes in credit risk
analysis in Russia. MIRA is a joint-venture between Moody's
Investors Service, a leading provider of credit ratings, research
and analysis covering debt instruments and securities in the
global capital markets, and the Interfax Information Services
Group. Moody's Investors Service is a subsidiary of Moody's
Corporation (NYSE: MCO).


SKB-BANK: Fitch Affirms Issuer Default Ratings at 'B'
-----------------------------------------------------
Fitch Ratings has affirmed SKB-Bank's (SKB) and Uraltransbank's
(UTB) Issuer Default Ratings at 'B' and at 'B-', respectively,
with Stable Outlooks.

The affirmation of the banks' ratings reflects the post-crisis
improvement in the operating environment supporting profitability
and loan book performance, thus mitigating to a degree previous
significant weakening of asset quality (UTB) and rapid growth
(SKB). Both banks have tight capitalization, although this is more
of an issue in the case of UTB. UTB also has a narrower franchise.

SKB's loan book is highly concentrated (top-20 exposures was equal
to 2.7x of equity at end-2010). Asset quality is currently
reasonable with non-performing loans (NPL; more than 90 days
overdue) at 6% at end-2010, with a reported 6.7% share of
construction/development loans in the loan book (potentially
higher due to the existence of a number of working-capital
financing loans to companies that have separate development
businesses). However, Fitch believes credit costs may increase in
the medium term due to further planned aggressive expansion.

Fitch views SKB's involvement in financing shareholder businesses
as low. Reported related-party lending was also low at 3% at end-
2010. Apart from being SKB's main shareholder, Mr. Dmitry
Pumpyansky (beneficiary of Sinara Group) is also a majority owner
of OJSC TMK (TMK), the largest tube producing company in Russia.
Although there is little interconnection between the SKB and TMK,
Fitch views the shareholder's holding of a large industrial asset
as somewhat positive for the bank as it may give him some
financial flexibility. That said, contagion risk for SKB is also
possible, but less likely due to TMK being much larger then the
bank.

Customer accounts are a core funding source for SKB and made up
80% of total liabilities at end-2010. These are moderate and
concentrated and pose some refinancing risk. Mitigating this, the
bank had a reasonable liquidity cushion (cash and cash
equivalents, CBR eligible securities and net interbank placements)
sufficient to cover 27% of customer accounts at end-2010.

SKB's capitalization is modest with Basel I Tier 1 capital ratio
of 8.1% at end-2010. All existing shareholders plan to provide SKB
with RUB1 billion equity in late 2011, in addition to RUB1.4
billion subordinated debt received in July. However,
capitalization will most likely remain tight due to planned
growth.

SKB is a medium-sized Russian bank (51st by assets at end-H111),
although it is one of the largest banks in its home region of
Ekaterinburg. SKB significantly expanded its branch network to 154
at end-2010 from 104 at end-2009. SKB is owned by Sinara Group
(75%) and EBRD (25%).

UTB's loan book decreased by 7% in 2010 with the reported NPL
ratio a high 21% of gross loans, while rolled-over and
restructured loans made up a further 13.2% of the portfolio.
Quality remained almost unchanged in 2011 with 18% NPL share and
11.6% rolled-over and restructured at end-H111.

UTB's liquidity is supported by a liquidity cushion (cash and cash
equivalents and net interbank placements) which accounted for 39%
of customer accounts at end-2010.

Fitch's concerns over UTB's capital position are associated with
2009-2010 accrued but not received interest (28% of IFRS equity at
end-2010), investment into a real estate fund (5%), investment
property (6%) and foreclosed assets (4%).

However, the pre-impairment operating profit net of uncollected
interest is moderately positive suggesting that UTB has an ability
to recover gradually. The currently favorable economic environment
should also aid this process. However, if the operating
environment worsens and/or if UTB reports additional material
losses/problems in its loan book, the ratings may be downgraded.

UTB is small bank, located in Ekaterinburg, controlled by Mr.
Valery Zavodov and his family. EBRD owns 25% of the bank.

The rating actions are:

SKB

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

   -- Short-term IDR: affirmed at 'B'

   -- Viability Rating: affirmed at 'b'

   -- Individual Rating: affirmed at 'D'

   -- Support Rating: affirmed at '5'

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

UTB

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

   -- Short-term IDR: affirmed at 'B'

   -- Viability Rating: affirmed at 'b-'

   -- Individual Rating: affirmed at 'D/E'

   -- Support Rating: affirmed at '5'

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

   -- National Long-term rating: affirmed at 'BB-(rus)'


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


AYT GENOVA: Moody's Downgrades Rating on D Certificate to 'B3'
--------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of the notes
issued by AyT GENOVA HIPOTECARIO X FTH.

Ratings Rationale

Moody's downgraded the A2 notes due to insufficient liquidity to
support payments on the tranche in the event of servicer
disruption. The rating action concludes the rating review of the
transaction, following the implementation on March 2, 2011 of
Moody's rating guidance entitled "Global Structured Finance
Operational Risk Guidelines: Moody's Approach to Analyzing
Performance Disruption Risk."

The rating action on tranche D is due to worse-than-expected
performance of the collateral. It also reflects Moody's negative
sector outlook for Spanish RMBS and the weakening of the macro-
economic environment in Spain, including high unemployment rates.

The ratings of the notes take into account the credit quality of
the underlying mortgage loan pool, from which Moody's determined
the MILAN Aaa Credit Enhancement (MILAN Aaa CE) and the lifetime
losses (expected loss), as well as the structural features and any
legal considerations as assessed in Moody's cash flow analysis.
The expected loss and the Milan Aaa CE are the two key parameters
used by Moody's to calibrate its loss distribution curve, which is
used in the cash flow model to rate European RMBS transactions.

Portfolio Expected Loss:

Moody's has reassessed its lifetime loss expectation taking into
account the collateral performance to date, as well as the current
macroeconomic environment in Spain. In June 2011, cumulative
write-offs rose to 0.48% of the original pool balance. The share
of 90+ day arrears stood at 0.59% of current pool balance.
Collateral is showing worse-than-expected performance and
deterioration has been greater for this deal compared to more
seasoned deals in the AyT Genova series. Moody's expects the
portfolio credit performance to deteriorate, as Spanish
unemployment remains elevated. The rating agency believes that the
anticipated tightening of Spanish fiscal policies is likely to
weigh on the recovery in the Spanish labor market and constrain
future Spanish households finances. Moody's also has concerns over
the timing and degree of future recoveries in a weaker Spanish
housing market. On the basis of Moody's negative sector outlook
for Spanish RMBS, the rating agency has updated the portfolio
expected loss assumption to 1.05% of original pool balance up from
0.36%.

MILAN Aaa CE:

Moody's has increased its MILAN Aaa CE assumptions to 6%, up from
2.85%. The revised Milan Aaa CE takes into account Moody's
negative sector outlook for Spanish RMBS and the weakening of the
macro-economic environment in Spain but also the seasoning of the
pool, the low Loan to Values (LTV) of the loans (all below 80%
with weighted average LTV of 50.66% as of June 2011) and their
geographical diversification.

Insufficient liquidity:

Barclays Bank S.A. (not rated by Moody's) is the servicer in this
transaction. Moody's downgrade of Series A2 mainly reflects the
low level of liquidity in the transaction. AyT Genova X has no
liquidity facility, so the only source of external liquidity to
ensure continuity of payments on the notes in case of servicer
disruption is the reserve fund. The reserve fund has been drawn to
83.41% of target level and currently represents 1.17% of pool
balance.

As part of the rating review, Moody's analyzed the evolution of
senior costs and notes interest payment in a higher interest rate
environment. The downgrade of the ratings of the A2 notes reflects
Moody's view that current level of liquidity provided by the
reserve fund is insufficient to support interest payments on the
notes in the event of a servicer disruption, especially if the
performance of the transaction deteriorates as anticipated. Under
the revised operational risk guidance, 6-9 months of senior
interest and costs is sufficient to allow continuity of payments
on highly rated securities.

Transaction Features

AYT GENOVA X closed in June 2007. The transaction is backed by a
portfolio of first-ranking mortgage loans not exceeding 80% LTV,
originated by Barclays Bank S.A. and secured on residential
properties located in Spain, for an overall balance at closing of
EUR1,050 million.

Reserve fund and Principal Deficiency (PDL): the increasing levels
of defaulted loans and tight excess spread in the transaction has
resulted in draws of the reserve fund (currently at 83.41% of its
target level) There is currently no PDL in the deal.

Interest deferral triggers: The interest deferral triggers for
Classes B, C and D have not been breached.

Commingling: All of the payments under the loans in this pool are
collected by the servicer under a direct debit scheme and then
transferred, on the same day, into the treasury account held at
Barclays Bank S.A. The deal includes rating triggers linked to
Barclays Bank PLC rating and it's share in Barclays Bank S.A. to
replace the account holder or look for a guarantor and to notify
borrowers of the need to make payments into an account in a
eligible counterparty in order for these to be liberatory.

Swap: the deal includes an Interest Rate swap agreement between
the Fondo and Barclays Bank PLC (Aa3/ P-1) which covers interest
rate risk and guarantees 43 bppa of spread.

For further details on the deal structure, please refer to the AYT
GENOVA X FTH, new issue reports. The report is available on
www.moodys.com.

Rating Methodologies

The principal methodology used in this rating was Moody's Approach
to Rating RMBS in Europe, Middle East, and Africa published in
October 2009. Please see the Credit Policy page on www.moodys.com
for a copy of this methodology.

Secondary methodologies used include Moody's Updated Methodology
for Rating Spanish RMBS published in October 2009, Cash Flow
Analysis in EMEA RMBS: Testing Structural Features with the MARCO
Model (Moody's Analyser of Residential Cash Flows) published in
January 2006 and Revising Default/Loss Assumptions Over the Life
of an ABS/RMBS Transaction published in December 2008.

Other Factors used in this rating are described in "Global
Structured Finance Operational Risk Guidelines: Moody's Approach
to Analyzing Performance Disruption Risk" published in June 2011.

List Of Rating Actions

Issuer: AyT Genova Hipotecario X Fondo de Titulizacion Hipotecaria

   -- EUR787.5M A2 Certificate, Downgraded to Aa1 (sf); previously
      on Mar 2, 2011 Aaa (sf) Placed Under Review for Possible
      Downgrade

   -- EUR14.7M D Certificate, Downgraded to B3 (sf); previously on
      Jun 25, 2007 Definitive Rating Assigned Ba1 (sf)

Issuer: GC FTPYME Sabadell 6, Fondo de Titulizacion de Activos

   -- EUR134.1M A3(G) Notes, Aa2 (sf) Placed on Review for
      Downgrade; previously on March 15, 2011 Downgraded to Aa2


GC FTPYME: Moody's Reviews B1-Rated Class B Notes for Downgrade
---------------------------------------------------------------
Moody's has placed on review for downgrade: (i) the Aa2(sf)
ratings of the senior notes of six Spanish asset-backed securities
(ABS) transactions, backed by loans to small and medium
enterprises (SMEs); and (ii) the ratings of four notes in an ABS
transaction backed by payment rights related to Spanish
electricity tariff deficits. This rating review follows Moody's
placement of Spain's Aa2 rating on review for downgrade on July
29, 2011. Spain guarantees the payments on the affected ABS notes.
At the same time, Moody's placed on review for downgrade the
junior notes of one of these six affected SME transactions, GC
FTPYME SABADELL 6, due to worse-than-expected performance. Moody's
will conclude the review of the affected ratings upon conclusion
of Spain's rating review.

Ratings Rationale

The rating announcement reflects the fact that Moody's rates the
guaranteed notes in the SME ABS transactions at the higher of: (i)
the intrinsic credit risk of the senior notes (i.e., their credit
risk without the guarantee); and (ii) the rating of Spain.

Five of the affected notes have an intrinsic credit risk of Aa3
and Moody's has therefore placed their rating on review for
downgrade. Moody's expects that a rating downgrade of these notes
will be by no more than one notch. Moody's has not placed on
downgrade review the ratings of the Spanish-sovereign-guaranteed
SME ABS, the intrinsic credit risk of which it assesses at Aaa,
Aa1 or Aa2. The exception is GC FTPYME SABADELL 6, whose intrinsic
credit risk of Aa2 on the A3(G) notes could be affected by worse-
than-affected performance.

Although Moody's methodology is a joint default analysis (JDA),
the rating agency will not rate the senior notes higher than
Spain's rating if the intrinsic credit risk of the notes does not
exceed the sovereign's rating. Moody's draws this conclusion
because its JDA considers not only the intrinsic credit risk of
the senior notes and the credit risk of Spain, but also the high
correlation between the credit risk of Spain and that of the SMEs.

Spain guarantees interest and principal due under the notes issued
by Fondo de Titulizacion del deficit del sistema electrico, FTA.
Given the specific nature of this transaction, which presents
various differences compared with other electricity tariff
securitisations, the ratings of the notes are fully linked to the
rating of Spain.

--GC FTPYME SABADELL 6

As previously mentioned, Moody's also placed on downgrade review
the Aa2(sf) and B1(sf) rating of the class A3(G) and B junior
notes of GC FTPYME SABADELL 6, Fondo de Titulizacion de Activos
due to worse-than-expected performance. At present, cumulative 90
days delinquencies have reached 8.45% of the original pool
balance, which is higher than Moody's mean default assumption of
7.2%, based on a 90 days delinquencies default proxy. The review
of the guaranteed A3(G) notes results from both the review of the
intrinsic credit risk of the notes and the review of the rating of
Spain.

Moody's placed on downgrade review the Aaa(sf) of class A2 notes,
following the implementation of Moody's rating guidance entitled
"Global structured Operational Risk Guidelines: Moody's Approach
to Analyzing Performance Disruption Risk" on March 2, 2011. The
transaction review will consist in both the performance and
operational risk review.

The lead analyst and rating office for each of the transactions
affected are generally different from the contact and office
listed at the end of this press release.

METHODOLOGIES

The principal methodology used in this rating for SME ABS deals
was Moody's Approach to Rating CDOs of SMEs in Europe, published
in February 2007.

AFFECTED TRANSACTIONS

Issuer: Bankinter 4 FTPYME, FTA

   -- EUR174.4M Series A2(G) Note, Aa2 (sf) Placed Under Review
      for Possible Downgrade; previously on Mar 15, 2011
      Downgraded to Aa2 (sf)

Issuer: BBVA-6 FTPYME, Fondo de Titulización de Activos

   -- EUR215.5M A2(G) Note, Aa2 (sf) Placed Under Review for
      Possible Downgrade; previously on Mar 15, 2011 Downgraded to
      Aa2 (sf)

Issuer: Fondo de Titulizacion del deficit del sistema electrico,
FTA

   -- EUR2000M Series 1 Notes, Aa2 (sf) Placed Under Review for
      Possible Downgrade; previously on Mar 15, 2011 Downgraded to
      Aa2 (sf)

   -- EUR2000M Series 2 Notes, Aa2 (sf) Placed Under Review for
      Possible Downgrade; previously on Mar 15, 2011 Downgraded to
      Aa2 (sf)

   -- EUR2000M Series 3 Notes, Aa2 (sf) Placed Under Review for
      Possible Downgrade; previously on Mar 29, 2011 Definitive
      Rating Assigned Aa2 (sf)

   -- EUR1000M Series 4 Notes, Aa2 (sf) Placed Under Review for
      Possible Downgrade; previously on May 17, 2011 Definitive
      Rating Assigned Aa2 (sf)

Issuer: FTPYME BANCAJA 3

   -- EUR153.9M A3(G) Notes, Aa2 (sf) Placed Under Review for
      Possible Downgrade; previously on May 16, 2011 Downgraded to
      Aa2 (sf)

Issuer: FTPYME TDA CAM 4, Fondo de Titulizacion de Activos

   -- EUR127M A3(CA) Notes, Aa2 (sf) Placed Under Review for
      Possible Downgrade; previously on Mar 15, 2011 Downgraded to
      Aa2 (sf)

Issuer: IM Grupo Banco Popular FTPYME I, Fondo de Titulizacion de
Activos

   -- EUR155.4M A5(G) Notes, Aa2 (sf) Placed Under Review for
      Possible Downgrade; previously on Mar 15, 2011 Downgraded to
      Aa2 (sf)

Issuer: GC FTPYME Sabadell 6, Fondo de Titulizacion de Activos

   -- EUR134.1M A3(G) Notes, Aa2 (sf) Placed on Review for
      Downgrade; previously on March 15, 2011 Downgraded to Aa2
      (sf)

   -- EUR35.5M B Notes, B1 (sf) Placed on Review for Downgrade;
      previously on Nov. 3, 2009 Downgraded to B1 (sf)


OBRASCON HUARTE: Moody's Says Ratings Unchanged After 2Q Results
----------------------------------------------------------------
Moody's Investors Service has said that the Ba2 ratings and
negative outlook of Obrascon Huarte Lain S.A. (OHL) are unchanged
after the publication of the group's quarterly results ended
June 2011.

OHL's operating performance was in line with Moody's expectations,
with the group reporting relatively flat revenue growth in the
second quarter of 2011, but managing to increase consolidated
EBITDA to EUR493 million (+21.1% compared with the second quarter
of Q2 2010). This increase was due both to the activity of OHL's
Concessions division as well as that of its Construction business,
with growth figures of 20.7% and 28.6%, respectively. Concessions
accounted for 76.5% of OHL's total EBITDA, while 95.4% of the
group's total EBITDA originated from its international operations.

However, OHL's financial profile weakened, particularly as a
result of its recourse activities. The group's net recourse debt
stood at EUR1.66 billion in the second quarter of 2011,
representing an increase of EUR491 million compared with year-end
(YE) 2010. This was partly due to seasonal working outflows in the
first half of the year, as well as an occasional delay in
collecting from international clients (Algeria).

In Moody's view, this increase in recourse debt is exerting
downward pressure on the rating. OHL's ratio of net recourse
debt/recourse EBITDA stood at 6.0x in the second quarter of 2011
(compared with guidance of between 2.5x and 3.0x for the Ba2
rating). This reflects that the group's leverage is typically
highest in the second quarter due to working capital seasonality.
However, Moody's notes that OHL's consolidated leverage -- as
measured by net adjusted debt/consolidated EBITDA -- of 5.0x was
in line with guidance for the rating category (between 5.0x and
5.5x).

OHL's management plans to bring net recourse leverage down to
below 3.0x by YE 2011 and below 2.0x by YE 2012. OHL has detailed
plans to achieve this debt reduction, including (i) the repayment
of an intercompany loan worth EUR600 million from OHL Concesiones
to OHL Group in less than two years; (ii) the sale of INIMA and
use of those proceeds to reduce debt; (iii) the collection of
pending receivables from completed contracts in Algeria; and (iv)
the expected growth in revenues and EBITDA supported by OHL's
strong international construction order book. In addition, the
company has announced that it is considering the initial public
offering (IPO) of OHL Concesiones, the proceeds of which could
also be used to reduce recourse debt.

However, Moody's is concerned by the level of OHL's recourse debt
and expects the management team to deliver on this debt reduction
commitment over the next six months. Moody's derives comfort from
the fact that OHL's management has a strong track record of
delivering on its capital structure plans, including the EUR200
million equity injection in 2009, the issuance of a EUR700 million
bond in April 2010 and a EUR425 million bond in March 2011, and
the IPO of OHL Mexico in November 2010. However, if OHL fails to
deliver on the target to reach a ratio of net recourse
debt/recourse EBITDA of below 3.0x by YE 2011, further pressure
will be exerted on the group's rating.

OHL's liquidity profile remains weak due to the group's reliance
on short-term bilateral facilities. In line with industry
practice, a portion of OHL's credit lines tends to be of a
relatively short tenor and requires renewal (often on an annual
basis), reflecting their principal use for financing the build-up
in working capital during the first six to nine months of the
year. Despite its good track record of renewals, OHL's reliance on
short-term bilateral lines of credit for liquidity remains an area
of concern for Moody's. The rating assumes continued support by
OHL's banking group in this respect and no material disruption in
the funding arrangements. Should this continued access be
compromised at any time, that would also exert negative pressure
on OHL's rating.

The rating could be stabilized if credit metrics are sustained
within the guidance ranges for the rating category, such as net
consolidated debt/EBITDA (as adjusted by Moody's) of between 5.5x
and 5.0x, gross recourse debt/recourse EBITDA (as reported by OHL)
of between 4.0x and 3.5x and net recourse debt/recourse EBITDA (as
reported by OHL) of between 2.5x and 3.0x. Upward pressure on the
rating would require an improvement in the group's liquidity
profile and Moody's expectation of positive free cash flow
generation at a consolidated level on a sustainable basis.

The principal methodology used in rating Obrascon Huarte Lain S.A.
was the Global Construction Industry Methodology published in
November 2010. Other methodologies used include Loss Given Default
for Speculative-Grade Non-Financial Companies in the U.S., Canada
and EMEA published in June 2009.

Headquartered in Madrid, OHL is one of Spain's leading
construction and concession operators, involved in environmental,
development and industrial activities. For 2010, OHL reported
sales of EUR4.9 billion and EBITDA of EUR1 billion.


SANTANDER CONSUMER: S&P Cuts Ratings on Three Note Classes to 'D'
-----------------------------------------------------------------
Standard & Poor's Ratings Services took various rating actions on
Fondo de Titulizacion de Activos Santander Consumer Spain 07-2's
class A, B, C, D, and E notes.

The rating actions reflect the notification (the "early redemption
notice") by Santander Consumer Spain 07-2 that it cancelled its
notes in May 2011 after having called an early redemption. "At the
time we received the notification, we didn't withdraw our ratings.
Subsequently -- in July -- we lowered our ratings on the class A
to D notes on the basis of the payment report dated February
2011," S&P related.

On discovery of this error, S&P has:

    Withdrawn its our ratings on the class A and E notes; and
    Lowered to 'D (sf)' and withdrawn, effective in 30 days time,
    its ratings on the class B, C, and D notes.

According to the early redemption notice, Santander Consumer Spain
07-2 had sufficient proceeds to service the entire amount of
principal and interest due under the class A notes at the time of
the redemption.

The early redemption notice also indicated that there were
insufficient proceeds from the sale of collateral to cover the
principal payment on all the notes, as a result of which, we
understand, the class B, C, D, and E noteholders experienced
principal losses. "We have therefore lowered our ratings on the
class B, C, and D notes to 'D (sf)' before withdrawing them.
The ratings will remain at 'D (sf)' for a period of 30 days before
the withdrawal of such ratings becomes effective," S&P related.

The class E notes were already rated 'D (sf)' as a result of a
missed interest payment in May 2009. "For this reason, the rating
on these notes is unaffected by the failure to repay the full
principal in May 2011, and we have simply withdrawn the rating on
the class E notes at its existing level," S&P said.

Santander Consumer Spain 07-2's notes securitize a portfolio of
Spanish auto consumer loans originated by Santander Consumer
Finance, S.A.

Ratings List

Class                Rating
             To                   From

Fondo de Titulizacion de Activos Santander Consumer Spain 07-2
EUR1.02 Billion Floating-Rate Notes

Ratings Withdrawn
A            NR                   BBB- (sf)
E            NR                   D (sf)

Ratings Lowered and Withdrawn[1]
B            D (sf)               B (sf)
             NR                   D (sf)

C            D (sf)               CCC (sf)
             NR                   D (sf)

D            D (sf)               CCC- (sf)
             NR                   D (sf)

[1]The withdrawals become effective in 30 days' time.
NR--Not rated.


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


FROSTBITE 1: Moody's Assigns Caa1 Rating to EUR202MM Sr. PIK Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a definitive 'Caa1' rating
to the EUR202 million senior PIK notes due 2019 issued by
Frostbite 1 AB, following receipt of final documentation. The
final terms of the notes are in line with the drafts reviewed for
the provisional (P)Caa1 instrument rating assignment.

Ratings Rationale

Moody's definitive rating on this debt obligation is in line with
the provisional rating assigned on April 11, 2011. Moody's rating
rationale was set out in a press release issued on that date.

The principal methodology used in rating Frostbite 1 AB was the
Global Manufacturing Industry Methodology published in December
2010. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Headquartered in Sweden, Dometic is a leading manufacturer of
leisure products for the caravan, motor home, automotive, truck,
hotel and marine markets in almost 100 countries. The company
reported SEK7,958 million of sales and SEK1,345 million of
Adjusted EBITDA in 2010 and employed 6,441 people.


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


* UKRAINE: President Vetoes Creditor Rights Protection Law
----------------------------------------------------------
Dragon Capital News reports that President Viktor Yanukovych
vetoed law #3672-VI, which would change the legal framework
concerning relationships between consumers and suppliers of
financial services in Ukraine.

According to Dragon Capital, the bill aimed to regulate various
aspects of creditor rights protection such as bankruptcy
procedures, execution of collateral foreclosure, and bad debt
sales.

Also, the bill aimed to forbid F/X consumer lending and reinforce
protection of borrowers' interests (i.e. a ban on unilateral
changes to fixed loan rates by banks and prohibition of charging
commission payments not envisaged in the initial agreement),
Dragon Capital discloses.

The president vetoed the law citing a number of minor issues (such
as requesting clarification of the wording on criminal
responsibility for fraudulent data provision and details of the
introduction of a moratorium on creditors' claims), Dragon Capital
notes.


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


ALPHATRAN CAPITAL: Members Opt to Liquidate Funds, Close Firm
-------------------------------------------------------------
FINalternatives reports that AlphaTran Capital LLP executives have
decided to close the company's doors three years after its launch.

Citing regulatory filings, FINalternatives notes that the London-
based firm's members voted last month to liquidate its funds and
close the firm.  FINalternatives relates that the liquidator,
Kinetic Partners' Bill Cleghorn, told Reuters the firm was solvent
at the time of the decision.

According to FINalternatives, it is unclear how much AlphaTran
managed at the time of its decision to wind down; it was seeded
with US$50 million by Thames River.  It is also unclear how it
performed during its three years, or whether either played a role
in the decision to close, FINalternatives adds.

AlphaTran was founded in 2008 by three industry veterans, led by
The Children's Invest Fund's Damien Tran.  The long/short equity
fund was seeded by Thames River Capital and was designed to take
advantage of market volatility, which spiked months later, when
Lehman Brothers collapsed.


BEAR INN: Calls in Administrators, Seeks Buyer to Save 20 Jobs
--------------------------------------------------------------
Insider Media Limited reports that the Birmingham office of
accountancy firm PKF is seeking a buyer for Derbyshire's Bear Inn
pub after the business entered administration in June this year.

PKF said the business will continue to trade as normal while a
buyer is sought, according to Insider Media Limited.

Insider Media Limited notes that Brian Hamblin, partner at the
accountancy firm, said a sale would save about 20 jobs.  "A
successful sale could save up to 20 jobs, as well as preserving a
real piece of English history," Insider Media Limited quoted Mr.
Hamblin as saying.

Situated in the Derbyshire Dales, The Bear Inn consists of a bar,
restaurant, hotel with 12 rooms, and two small holiday cottages.


CABLE & WIRELESS: Moody's Changes Outlook on Ratings to Negative
----------------------------------------------------------------
Moody's Investors Service changed the ratings outlook for Cable &
Wireless Communications Plc, Ba2 Corporate Family Rating) as well
as its rated subsidiaries to negative from stable.

Moody's decision to change the ratings outlook to negative is
based on (i) the persistent weak operating performance of CWC in
the Caribbean region; (ii) the expected increase in its
proportionate Net Debt/ EBITDA (as calculated by the company) in
FY2011/12 towards 2.5x, which is the high end of CWC's own
leverage range; and (iii) the materially negative FCF generation
expected in FY2011/12 resulting from the fairly aggressive
dividend policy of the company.

Ratings Rationale

In FY2010/11, CWC's reported revenues increased by 4% (1% like-
for-like) to US$2.4 billion and its reported EBITDA increased by
1% (-3% like-for-like) to US$872 million. While three of the
company's business units - Panama, Macau and Monaco & Islands,
progressed satisfactorily and their aggregate EBITDA increased on
a like-for-like basis during FY 2010/11, Caribbean division (which
accounts for 35% of CWC's consolidated revenues and 26% of its
EBITDA) registered weak operating results. CWC's performance in
the Caribbean remains challenging due to the continued weak
economic conditions. Revenues from the Caribbean division declined
by 3% and its reported EBITDA margins fell to 27% in FY2010/11
compared to 31% a year ago. As the Caribbean has been trading
below company's expectations, Moody's notes that CWC has
cautiously guided for an EBITDA range of US$180 million- US$210
million (excluding BTC) for FY 2011/12. In Moody's opinion,
Jamaica remains a drag and the regulatory environment continues to
remain challenging further aggravating economic pressures in the
region.

CWC ended FY2010/11 with a increased net debt of US$994 million
compared to US$664 million in FY2009/10, primarily due to the
US$149 million cash outflow towards CWC's pension scheme and
US$117 million of dividend payment to Cable & Wireless Worldwide.
At March 31, 2011, Company's reported net debt/ EBITDA was 1.1x on
a consolidated basis and 1.8x on a proportionate basis versus
Moody's adjusted Gross Debt/ EBITDA of 2.1x on a consolidated
basis and 3.0x on a proportionate basis.

Pro-forma the BTC acquisition (completed in April 2011), the
company's reported consolidated Net debt/ EBITDA is approximately
1.2x and around 2.0x on a proportionate basis. Moody's notes that
CWC's financial policy remains focused at maintaining the group's
reported Net Debt/ EBITDA between 1.0x to 2.0x on a consolidated
basis and between 1.5x to 2.5x on a proportionate basis. However,
due to the challenging operating environment, the agency believes
that company's reported Net Debt/ EBITDA on a proportionate basis
could trend towards 2.5x in FY2011/12 which implies that on a
Moody's adjusted Gross Debt/ EBITDA basis, the company could be
trending towards the high end of the leverage parameters defined
for CWC's Ba2 rating.

CWC's free cash flow (as calculated by Moody's, excluding
exceptional cash outflows) for FY2010/11 was negative after cash
capex of US$332 million and dividends of US$320 million. The
company has guided towards capex of around US$400 million for
FY2011/12 (including Bahamas) which is likely to reduce to a range
of US$325 million to US$375 million going forward. The Board of
CWC has recommended final dividend of US5.33 cents per share, and
will be paying a full year dividend of US8 cents/share for
FY2010/11. Cash outflows towards dividends in FY 2011/12 will lead
to materially negative free cash flow for the year, in Moody's
opinion. Subject to satisfactory financial and trading
performance, the agency notes that the company expects to keep its
dividends flat for 2011/12.

Moody's considers CWC's dividend policy as aggressive given the
challenges to its business and for ratings maintenance at Ba2
level, the agency would require CWC to return to neutral to
positive free cash flow generation (post dividends) from FY2012/13
onwards. The rating could be upgraded (i) once the company returns
to positive free cash flow at a group level including dividend
payments on a sustained basis and (ii) company's consolidated
Gross Debt to EBITDA ratio (as adjusted by Moody's) trends below
2.0x or its proportionate Gross Debt/ EBITDA ratio is around or
below 3.0x. The company's size and level of regulatory/political
risk constrain the rating.

Downward pressure on the rating could develop if (i) performance
in Panama, Macau and / or Monaco & Islands deteriorates and
operating results in the Caribbean division remain weak; (ii) the
company remains meaningfully free cash flow (as calculated by
Moody's post capex and dividends) negative in FY2012/13 and
beyond; and/ or (iii) if the company's consolidated Gross Debt to
EBITDA ratio (as adjusted by Moody's) approaches 3.0x or its
proportionate Gross Debt to EBITDA ratio (as adjusted by Moody's)
trends towards 4.0x on a sustained basis.

The principal methodology used in rating Cable and Wireless
Communications Plc was the Global Telecommunications Industry
Methodology published in December 2010. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

Headquartered in London, CWC is an operator of full-service
telecommunications businesses providing mobile, broadband and
domestic and international fixed line services, as well as
offering enterprise solutions and managed services in Caribbean,
Panama, Macau and Monaco & Islands.


COMET: Buyers May Have to Take on GBP49-Mil. Pension Deficit
------------------------------------------------------------
Helia Ebrahimi at The Telegraph reports that Comet has told
potential buyers they will have to take on a GBP49 million pension
deficit in order to buy the company.

The retailer was put up for sale by its Anglo French parent, Kesa
Electricals, after Comet made a GBP9 million loss, The Telegraph
relates.  Kesa bowed to pressure from its largest shareholder, the
activist investor Knight Vinke, to look at "a range of strategic
options", including the disposal of Comet, The Telegraph recounts.

According to The Telegraph, the pension deficit increases the
likelihood that Kesa would have to pay any buyer a substantial
"dowry" to take Comet off its hands.  Otherwise, Kesa could be
forced to keep the liability on its own books, as Aviva did
recently when it sold roadside rescue company RAC, The Telegraph
notes.

Last week, a handful of bidders went through to the second round,
including private equity group OpCapita, which specializes in
operational turnaround situations, The Telegraph discloses.

The Telegraph says Comet's sales process is under pressure because
of both the shrinking retail market the stores operate in and the
sizeable liability, which insiders say could cost a potential
buyer more than GBP100 million.  "To remove the risk of further
deterioration in the deficit, you would have to sell the scheme to
an insurer," The Telegraph quotes a source as saying.  "The cost
of doing that could be twice the amount of the current GBP50
million deficit.  Plus the pensions regulator would also have
jurisdiction to review any deal involving the scheme."

Comet has agreed a recovery plan with the pension trustees that
means it has to make GBP6.1 million of additional annual
contributions to the scheme in order to remove the deficit by
2018, The Telegraph discloses.

If Kesa decides to keep the deficit on its own books, it could
still have to pay a dowry to make up for future losses, including
next year's projected GBP10 million loss, The Telegraph notes.

However, if Comet is sold to a buyer only interested in its assets
-- rather than running the company as a going concern -- Kesa
could escape the need for a dowry, The Telegraph states.

As reported by the Troubled Company Reporter-Europe on Aug. 2,
2011, Dow Jones Newswires related that Kesa Electricals PLC won't
consider selling its struggling unit Comet to anyone who would
place it into administration, shrinking the pool of potential
acquirers that likely includes several specialist liquidators.
Dow Jones noted that this means that several restructuring
specialists that have reportedly expressed interest, such as GA
Europe, Hilco and Gordon Brothers, are likely to be out of the
running given their precedent in liquidations.  Private equity
group OpCapita remains as a strong contender for the chain, Dow
Jones disclosed.

Comet is Kesa Electricals PLC's electrical chain in United
Kingdom.


DECO 12: S&P Affirms Ratings on Two Classes of Notes at 'D'
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
DECO 12 - UK 4 PLC's class A-1, A-2, B, C, D, E, and F notes.

"The rating actions follow our review of the transaction's overall
performance. We have concluded that the existing ratings
appropriately reflect the risks associated with this transaction,"
S&P related.

"In February 2011, we reviewed the transaction's performance and
lowered our ratings on the class C, D, E, and F notes to reflect
our view on interest and principal losses (see 'Ratings Lowered On
Class C, D, E, And F Notes In U.K. CMBS Transaction DECO 12 - UK
4,' published on Feb. 17, 2011). None of the loans have
experienced what we view as material declines in performance since
then. We continue to believe that that the class D notes remain
exposed to principal losses," S&P said.

"Furthermore, in on April 28, 2011, we lowered our ratings on the
class A-1 and A-2 notes for counterparty reasons (see 'Ratings
List Resolving European Structured Finance Counterparty
CreditWatch Placements-April 28, 2011 Review'). The counterparty
risk in this transaction remains unchanged, in our view," S&P
related.

The DECO 12 - UK 4 is a commercial mortgage-backed securities
transaction that encompasses nine loans -- predominantly retail,
properties throughout the U.K. The largest loan (Tesco) accounts
for about 85% of the pool balance. The current portfolio balance
is GBP409.0 million, down from GBP672.9 million at closing. Seven
loans in the transaction are scheduled to mature in the next
three years.

Ratings List

DECO 12 - UK 4 PLC
GBP672.884 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Affirmed

Class       Rating

A-1         A (sf)
A-2         A (sf)
B           A- (sf)
C           BB+ (sf)
D           B- (sf)
E           D (sf)
F           D (sf)


EUROSALI-UK: Moody's Confirms 'B2' Rating on Class C1a Notes
------------------------------------------------------------
Moody's Investors Service has confirmed the ratings of three
classes of notes issued by Eurosail-UK 2007-1NC PLC. The ratings
of the notes were placed on review for possible downgrade in
August 2010 due to the worse-than-expected performance of the
collateral.

Ratings Rationale

The action concludes the review and takes into account the
performance of the transaction and the negative outlook for the UK
non-conforming RMBS sector. Moody's assessed the credit quality of
the underlying mortgage portfolio as well as the transaction
structure and any legal considerations as assessed in Moody's cash
flow analysis. The lifetime losses (expected loss) and the MILAN
Aaa Credit Enhancement (Milan AaaCE) are the two key parameters
used by Moody's to calibrate its loss distribution curve, which is
used in the cash flow model to rate European RMBS transactions.

Portfolio Expected Loss:

The collateral performance has been worse than anticipated as of
the last rating action in September 2009, although arrears levels
have stabilized in last few quarters. As of June 2011, cumulative
losses as a percentage of the original portfolio balance amounted
to 4.0%, up from 1.6% as of June 2009 (latest data point available
as of the last rating action). Loans delinquent by more than 90
days (including outstanding repossessions) as a percentage of the
current portfolio balance amounted to 33.0% compared to 34% as of
June 2009. Approximately 7.6% of the current portfolio balance is
represented by loans in arrears by more than 360 days. Since June
2009, quarterly prepayment rates have decreased from 13.3% to 5.6%
while weighted average cumulative loss severity has increased from
31.7% to 35.4%. Considering the current amount of realized losses,
and completing a roll-rate and severity analysis for the non-
defaulted portion of the portfolio, Moody's has increased its
lifetime expected loss assumption for the portfolio from 7.5% to
9.0% of the closing portfolio balance.

MILAN Aaa CE:

Moody's has also re-assessed updated loan-by-loan information on
the portfolios and increased its MILAN AaaCE assumption to 30.5%
from 30.0%, mainly due to increasing borrower concentration in the
portfolio. As of the latest payment date the credit enhancement
under the Class A notes (including subordination and reserve fund)
was equal to 28.9%.

The confirmation is due to the increase in credit enhancement
available under all classes of notes since the last rating action
in September 2009. In particular, available revenues in the
transaction were sufficient to repay the outstanding principal
loss deficiency ledger balances and to replenish the reserve fund
to approximately GBP1.0 million, or 20.5% of the target level.

Moody's has also tested the sensitivity of the ratings to various
stress scenarios increasing the lifetime losses and Milan Aaa CE.
By increasing losses Moody's tested the resilience of the ratings
to future interest rate increases. The sensitivity analysis showed
that the current credit enhancement is sufficient to support
current ratings in more stressed scenarios.

Liquidity Facility

The transaction benefits from a liquidity facility of 11% of
current principal balance (GBP38.5 million) provided by Lloyds TSB
Bank Plc. Since April 2009 the liquidity facility is fully drawn
and cannot amortize due to counterparty and performance trigger
breaches. The action takes into account the increased costs due to
the interest paid on the stand-by drawing.

Rating Methodologies

The principal methodology used in this rating was Moody's Approach
to Rating RMBS in Europe, Middle East, and Africa, published in
October 2009.

Other Factors used in this rating are described in Moody's
Approach to Rating UK RMBS published in April 2005, Moody's
Updated Methodology for Rating UK RMBS published in October 2009
and Revising Default/Loss Assumptions Over the Life of an ABS/RMBS
Transaction published in December 2008.

LIST OF RATINGS ACTIONS

Issuer: Eurosail-UK 2007-1NC PLC

   -- GBP100M A3c Notes, Confirmed at Aa2 (sf); previously on Aug
      27, 2010 Aa2 (sf) Placed Under Review for Possible Downgrade

   -- EUR36.9M B1a Notes, Confirmed at Baa2 (sf); previously on
      Aug 27, 2010 Baa2 (sf) Placed Under Review for Possible
      Downgrade

   -- EUR42.1M C1a Notes, Confirmed at B2 (sf); previously on Aug
      27, 2010 B2 (sf) Placed Under Review for Possible Downgrade


GLOBAL SHIP: To Hold Annual Meeting of Shareholders on Aug. 31
--------------------------------------------------------------
Global Ship Lease, Inc., notified its shareholders of an annual
meeting of shareholders which will be held at the Company's
administrative office at Portland House, Stag Place, London SW1E
5RS on Aug. 31, 2011, at 3:00 p.m. local time, and related
materials.

At the Meeting, shareholders of the Company will consider and vote
upon these proposals:

   1. To elect one Term III Director to serve until the 2014
      Annual Meeting of Shareholders;

   2. To ratify the appointment of PricewaterhouseCoopers Audit,
      as the Company's independent public accounting firm for the
      fiscal year ending Dec. 31, 2011; and

   3. To transact other business as may properly come before the
      meeting or any adjournment thereof.

Adoption of both Proposal One and Proposal Two requires the
affirmative vote of a majority of the votes cast by shareholders
present in person or by proxy and entitled to vote at the Meeting,
provided that a quorum is present.

                       About Global Ship Lease

London-based Global Ship Lease (NYSE: GSL, GSL.U and GSL.WS)
-- http://www.globalshiplease.com/-- is a containership charter
owner.  Incorporated in the Marshall Islands, Global Ship Lease
commenced operations in December 2007 with a business of owning
and chartering out containerships under long-term, fixed rate
charters to world class container liner companies.

Global Ship Lease owns 17 vessels with a total capacity of 66,297
TEU with a weighted average age at June 30, 2010, of 6.3 years.
All of the current vessels are fixed on long-term charters to CMA
CGM with an average remaining term of 8.6 years.  The Company has
contracts in place to purchase two 4,250 TEU newbuildings from
German interests for approximately US$77 million each that are
scheduled to be delivered in the fourth quarter of 2010.  The
Company also has agreements to charter out these newbuildings to
Zim Integrated Shipping Services Limited for seven or eight years
at charterer's option.

The Company reported a net loss of US$3.97 million on
US$158.84 million of time charter revenue for the year ended
Dec. 31, 2010, compared with net income of US$42.37 million on
US$148.71 million of time charter revenue during the prior year.

The Company's balance sheet at March 31, 2011, showed
US$972.14 million in total assets, US$636.60 million in total
liabilities and US$335.54 million in total stockholders' equity.


NORTHERN ROCK: Bad Bank Repays GBP1-Bil. to Gov't. in First Half
----------------------------------------------------------------
Sharlene Goff at The Financial Times reports that Northern Rock
Asset Management, which runs the lender's portfolio of existing
loans dubbed the "bad bank", repaid GBP1 billion to the government
in the first half of the year, but came under pressure as bad
debts continued to rise.

The group, which was split from Northern Rock at the start of 2010
and later merged with Bradford & Bingley's lending arm, revealed
that 6% more borrowers had missed at least three months' of
mortgage payments in the period, the FT relates.

However, Richard Banks, chief executive of UK Asset Resolution,
which runs the combined Northern Rock and B&B loan books, said the
rate of the increase has slowed in the past six months and arrears
had fallen in May and June, the FT notes.

Mr. Banks accelerated the repayment of the government loan that
was provided to bail out Northern Rock following its collapse in
2007, the FT recounts.  After repaying GBP1 billion in the first
half, on top of the GBP1.1 billion repaid in the full-year 2010,
it owes GBP20.7 billion, the FT discloses.

In total, 13% of Northern Rock customers and 7% of B&B borrowers
were behind on repayments.  In addition, 46,000 customers, about
6% of the combined group's total base, have benefited from some
kind of assistance or forbearance to help them avoid missing
repayments, the FT says.

Operating some 70 branches across the UK, Northern Rock offers
residential mortgages and savings accounts, including variable
cash and fixed-rate Individual Savings Accounts (or ISAs, which
are tax-exempt savings accounts offered in the UK), as well as
bonds and traditional savings accounts.  The bank also offers
financial planning and mortgage-related insurance and life
assurance products through third-party providers.  Northern Rock
was formed in early 2010 after being spun off from its troubled
predecessor of the same name.  The remaining company was
restructured and renamed Northern Rock (Asset Management) plc.


PRESBYTERIAN MUTUAL: Firm's Savers to Receive Cheque Payment
------------------------------------------------------------
UTV News reports that thousands of Presbyterian Mutual Society
savers who lost money when the organization went into
administration are expecting to receive a cheque in the post on
August 2.

As reported in the Troubled Company Reporter-Europe on May 17,
2011, News Letter said that the smallest savers in the
Presbyterian Mutual Society will get 100% of their money back.  A
third of larger PMS savers have voluntarily voted to defer
removing all funds eligible to them in a government rescue
package, so as to allow those with less than GBP20,000 saved as
shares to get a complete refund, according to News Letter.  The
GBP300 million entity has some 9,500 members and went into
administration in 2008 after suffering a run during the British
banking crisis, News Letter noted.  The Treasury Select Committee
later found its members had been "innocent victims" of "a fatal
regulatory gap" by the government, News Letter related.  News
Letter said the UK government has put up GBP200 million in loans
while the Treasury is making a GBP25 million contribution to the
rescue package and the Presbyterian Church is giving GBP1 million.

UTV News discloses that those with loan capital in the Society,
who are classed as creditors, have received 12% of their money
back.  However, because of the way insolvency law operates,
nothing was payable to shareholders known as members.  However,
UTV News relates, the rescue package now means that those who had
less than GBP20,000 invested will receive all their money back but
those with more will receive 85% and the other 15% is dependent on
the selling of PMS property and assets.

The Administrator, Arthur Boyd of Arthur Boyd & Co, developed the
scheme in order to pay out the GBP225 million in financial
assistance provided by the government, as well as GBP1m from by
the Presbyterian Church in Ireland, UTV News relates.

UTV News adds that a further sum of over ť6m has been made
available from the income accrued by the Society during
Administration, making the total proposed payout in excess of
GBP232 million.

                  About Presbyterian Mutual Society

Presbyterian Mutual Society is based in Belfast, Northern Ireland.

As reported by the Troubled Company Reporter-Europe, the Financial
Times said the society had assets of around EUR300 million when it
was forced into administration in 2008 after suffering a run of
withdrawals at the onset of the global financial crisis.


PUNCH TAVERNS: Demerged Companies Begins Trading
------------------------------------------------
Rose Jacobs at The Financial Times reports that The Punch and
Spirit pub groups began their life as separate companies in rocky
trading on Monday, but together delivered a net gain on former
umbrella company Punch Taverns' final trade on Friday.

Spirit Pub Company, the demerged entity consisting of 800 managed
pubs and a further 550 leased venues, closed at 55p on the London
Stock Exchange, in line with the predictions of the more bearish
City analysts, the FT notes.

Punch, meanwhile, which holds 5,000 tenanted and leased pubs and
more than GBP2 billion (US$3.3 billion) of net debt, closed at
13p, the FT discloses.  Combined, the two stocks' share prices
were 3% higher than Punch Taverns' closing price of 63.55p on
Friday, the FT relates.

Ian Dyson, Spirit's chief executive and the former chief of Punch
Taverns, devised the demerger earlier this year in answer to
equity investors' unhappiness over the company's trading and share
price performance, the FT recounts.  Sluggish growth and huge debt
piles backed by Punch's tenanted and leased pubs meant profits
were "cash trapped" -- or used to cover covenants, with no
immediate benefit for shareholders, the FT states.

Mr. Dyson allotted GBP113 million of cash to Spirit and GBP92
million to Punch, the FT discloses.  The latter is expected to use
much of that in the next several years to keep from defaulting on
its debt -- the same practice that had irked Punch Taverns'
shareholders, the FT says.  Analysts agree Punch now needs to
negotiate new covenants with bondholders, several of whom were
alienated by a lack of communication with Punch's management ahead
of the demerger, the FT notes.

Punch Taverns plc is a United Kingdom-based pub company.  The
Company is engaged in the operation of public houses under either
the leased model or as directly managed by the Company.  The
Company operates in two business segments: punch partnerships, a
leased estate and punch pub company, a managed estate.  Punch
Partnerships is the Company's leased division, comprising 5,967
pubs nationwide.  Punch Pub Company is its managed division,
comprising 803 pubs nationwide.  The leased model involves the
granting of leases to tenants who operate the pub as their own
business, paying rent to the Company, purchasing beer and other
drinks from it and entering into profit sharing arrangements for
income from leisure machines.  Pubs that are directly managed
involve the employment of a manager to operate each managed pub
and the Company receives all revenues generated by the pub and is
responsible for costs.  On Feb. 10, 2010, the Company disposed of
Safe Jumper Limited.


SEA FRANCE: DFDS & LD Lines in Joint Bid to Acquire Firm's Assets
-----------------------------------------------------------------
BBC News reports that ferry firms DFDS and LD Lines have joined
forces in a bid to take over part of SeaFrance that operates ferry
services between Dover and Calais.

SeaFrance went into receivership in 2010.

BBC News notes that Soren Brondholt Nielsen, director of DFDS,
said: "It is realistic to have a profitable future.  We have
documented that as part of our bid and that bid covers the
majority of SeaFrance's assets and staff.  In many respects, there
will be no changes to the services.  In that way, we will be
keeping jobs in SeaFrance."

SeaFrance is a cross-Channel ferry operator.


UNIQUE PUB: S&P Lowers Rating on Class N Notes to 'B+'
------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on The Unique Pub Finance
Co. PLC's (Unique) class A, M, and N notes. The outlook is
negative.

This transaction is a corporate securitization backed by a
portfolio of tenanted public houses. S&P's rating actions in
Unique, among other things, reflect:

    "Our revised "fair" business risk score for both Unique and
    its parent company, Enterprise Inns (B+/ Negative/--)," S&P
    stated.

    The performance to date.

    "Our views on planned asset disposals, particularly regarding
    our expectations of an initial drop in EBITDA, and uncertainty
    about how Enterprise Inns will use the proceeds from the
    sales," S&P related.

In the financial year to March 2011, trading conditions have not
improved for tenanted pubs. Enterprise Inns has reported revenues
down by 7% in the first half of the 2010/2011 financial year, with
EBITDA declining by 12%. Although these measures factor in some
planned asset disposals, like-for-like net income from the
substantive estates has fallen by 2%.

"Our December 2010 revision of the business risk profile on
Enterprise Inns followed three consecutive years of negative
profitability at the pub level, and our view that conditions will
remain challenging in 2011. This is due to rising value-added tax
and beer duties, lower government spending, and higher personal
taxes, which are likely to feed through into weaker consumer
spending, lower beer volumes, and continuing downward pressure on
rents," S&P stated.

"We continue to monitor the longer-term shift away from on-trade
sales and the continued decline in beer consumption, even though
this decline is likely to be offset by sales of higher-margin
products. We expect both higher-margin beer and wine sales, as
well as food sales, to prove more cyclical than traditional beer
sales. Accordingly, if not well managed, pub estates' business
risk scores could continue to decline over time. We expect
good-quality pubs in Unique's estate to gain from the currently
high level of pub closures, which should reduce competition," S&P
related.

In the same financial year, Unique's reported revenue and EBITDA
(excluding parent company support) have continued to decline,
albeit slower than previously, falling by 1.7% quarter-on-quarter
in Q1 2011, and about 5.6% year-on-year. The decline in revenue
includes VAT and hence is not adjusted for the change in January
2011. While this includes an approximately 8% annual reduction in
the number of pubs, Enterprise Inns plans further disposals of
tail-end pubs in 2011 and 2012. "We note that, at its current
level, cash flow is increasingly likely to be insufficient to make
full debt service when the class A3 and A4 notes begin to amortize
in 2013 and 2014 without reliance on structural support or some
form of parent company support," S&P said.

"We will continue to monitor the amount and effect of any future
parental support, including the buffer to the covenants--
especially since we believe that the majority of support would be
upstreamed back to Enterprise Inns," S&P related.

"We also believe that asset disposals in the Unique securitization
will further reduce EBITDA and cash flow coverage ratios. As a
result, the stress levels that the company needs to withstand to
ensure investment-grade ratings have increased, leading to further
rating action," S&P noted.

The negative outlook reflects the short-term challenges faced by
Enterprise Inns and Unique. "In our view, the combination of
government spending cuts, depressed consumer confidence, and
recent tax/tariff increases, will mean that the tenanted pub
sector will continue to find it difficult to improve trading
to levels commensurate with a higher 'satisfactory' business risk
score. Going forward, to maintain the current ratings on Unique's
notes, like-for-like profits would have to completely stabilize in
2011, and the transaction would have to maintain a reasonable
financial ratio to be able to make the increased debt service
payments from 2013 and 2014 without parent company support (see '
U.K. Pub Industry Must Continue To Diversify As More Customers
Entertain At Home,' published June 29, 2011)," S&P said.

"Furthermore, the negative outlook reflects the fact that we are
still awaiting the cash flow outcome from further asset disposals
planned over the remainder of 2011 and into 2012," S&P related.

"We will continue to monitor the effect of the disposal program--
particularly how the sale of the pubs could affect the
transaction's cash flow to debt service profile. This is
especially a concern for the lower-rated notes," S&P said.

Ratings List

The Unique Pub Finance Co. PLC
GBP2.371 Billion Fixed- and Floating-Rate Asset-Backed Notes

Ratings Lowered and Removed From CreditWatch Negative; Outlook
Negative

Class                  Rating
            To                          From

A2N         BBB- (sf)/Negative          A- (sf)/Watch Neg
A3          BBB- (sf)/Negative          A- (sf)/Watch Neg
A4          BBB- (sf)/Negative          A- (sf)/Watch Neg
M           BB- (sf)/Negative           BB+ (sf)/Watch Neg
N           B+ (sf)/Negative            BB (sf)/Watch Neg


URSUS EPC: Fitch Downgrades Ratings on Three Note Classes to 'D'
----------------------------------------------------------------
Fitch Ratings has downgraded Ursus EPC p.l.c's notes and
simultaneously withdrawn these ratings:

   -- GBP4.6m class C (XS0225932697) downgraded to 'Dsf' from
      'Csf'; rating withdrawn

   -- GBP4.5m class D (XS0225933406) downgraded to 'Dsf' from
      'Csf'; rating withdrawn

   -- GBP2.5m class E (XS0225934719) downgraded to 'Dsf' from
      'Csf'; rating withdrawn

The downgrade reflects the losses allocated to and crystallized on
the July 22, 2011 following the sale of the collateral for the
Castlegate Shopping Centre loan, the last remaining loan in the
portfolio.

The special servicer, Capita Asset Services (UK) Limited (rated
'CSS2'), announced that the shopping centre had been sold on
January 10, 2011. Final net recoveries were GBP27.2 million,
resulting in a loss of 25% of the original loan balance. The
GBP8.87 million loss was allocated reverse sequentially to the
notes, resulting in a partial write-down of the class C, D and E
notes based on the original tranche balances. The class A and B
notes were fully redeemed with the sale proceeds.


VISIT LONDON: Assembly Members Criticize Mayor Over Collapse
------------------------------------------------------------
MayorWatch reports a new report by the London Assembly has
revealed that the decision to merge the capital's promotional
agencies, leading to the collapse of Visit London and endangering
the pensions of staff, "was not sufficiently robust."

As reported in the Troubled Company Reporter-Europe on May 13,
2011, MayorWatch said that Visit London's collapse and its impact
on the pensions of 39 former staff members is to be investigated
by the London Assembly.  Visit London was placed into
administration on April 1 this year following the establishment of
successor body London & Partners which merged the responsibilities
of Visit London, Think London and Study London into a single body,
according to MayorWatch.  The report related that the merger
followed the slashing of the mayor's development budget as part of
Government spending cuts.

In June, MayorWatch recalls that a rescue package was agreed
between the Greater London Authority (GLA), the pension scheme
trustees and the Pension Protection Fund which saw the GLA pay
GBP6 million into the pension fund and receive all outstanding
assets of Visit London.  The report relates that these assets have
been used to pay creditors who are owed around GBP2.5 million plus
administration and professional costs.

The report by the London Assembly's Economy, Culture and Sport
Committee says that "unforeseen extra costs" have left taxpayers
with a bill of around ť5m comprising GBP3 million for the pension
rescue and GBP2 million in start up costs for L&P, according to
MayorWatch.

MayorWatch relates that Assembly Members said any future transfer
of staff between bodies involving the GLA should include "a
targeted and proportionate assessment of the pension implications"
and that more needs to be done to "challenge assumptions" during
the decision process.  MayorWatch notes that despite being the
"sole founding Member of London & Partners" the Greater London
Authority has no Mayoral representative on the company's board.

Although the GLA "has a right to send to board meetings an
observer who will receive papers in advance and have the right to
speak," they do not have a vote in board decisions, MayorWatch
relates.

MayorWatch discloses that the report challenges the Mayor to
ensure the governance arrangements for London and Partners is "re-
examined".  MayorWatch relates that AMs say this is necessary "to
ensure that there are appropriate checks and balances to protect
the interests of the GLA while allowing London and Partners
sufficient freedom to operate efficiently and effectively."

The committee also wants "London and Partners, and any other
companies or external bodies set up and funded by the Mayor from
GLA resources [to] sign the GLA Group Corporate Governance
Framework," MayorWatch says.

The committee has called for the Mayor to respond to these
recommendations by the end of October 2011.

Visit London is the UK's former promotional and tourism agency.


WREXHAM FC: Wrexham Supporters' Trust Seeks to Acquire Club
-----------------------------------------------------------
Richard Williams at the Leader reports that Wrexham Supporters'
Trust have been involved in a lengthy bid to buy Wrexham Football
Club from Geoff Moss and co-owner Ian Roberts.

There have been many people linked with a takeover since the club
and ground were put for sale earlier this year, but none have been
forthcoming, according to the Leader.

Mr. Williams, reporting for the Leader, says that the Trust may
not have the millions of pounds to invest but they have the
interests of the club at heart.

The Leader notes that so far, the Trust has been unable to strike
a deal with the current owners who refuse to finance the club any
longer.  The report relates that without the current owner's
support, Wrexham FC is at risk of being unable to take their place
in the Conference when the new season kicks-off in less than a
fortnight.

Wrexham Football Club is a professional football team based in
Wrexham, north-east Wales, who plays in the English football
pyramid.


* UK: Lack of Credit May Lead to More Insolvent Small Businesses
----------------------------------------------------------------
Marcus Leach at freshbusinessthinking.com reports that Atlantic
Financial Management is cautioning small business owners and sole
traders against using personal loans and credit to shore up their
business finances in the absence of lending support from the
banks.

The release of the Q2 Insolvency figures this week is expected to
confirm the financial stress being faced by the UK's small traders
and self-employed, freshbusinessthinking.com notes.

According to the report, DEMSA member Atlantic Financial
Management is continuing to see a sharp rise in the number of
company directors and owners in serious financial problems, owing
in part to the fact they have used their personal credit cards to
support their business.

The news, says freshbusinessthinking.com, will come on the back of
last week's Credit Conditions Survey from the Bank of England
which showed that lending to UK businesses fell in the three
months to May and access to bank lending to smaller firms was
variable.

"The number of business owners and company directors contacting
Atlantic's debt advisors for help has risen noticeably since the
beginning of the year," freshbusinessthinking.com quoted
Kevin Still, Atlantic Director, as saying.

"When you look at the conditions they are facing, it is not
surprising. Small businesses are the hardest hit by late payment,
access to loans and credit is still very difficult and many have
seen their overdraft facilities withdrawn."


                            *********

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
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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
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The TCR Europe subscription rate is US$625 per half-year,
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                 * * * End of Transmission * * *