TCREUR_Public/110804.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, August 4, 2011, Vol. 12, No. 153

                            Headlines



B E L G I U M

ETHIAS SA: Fitch Affirms Subordinated Debt Rating at 'B'


B O S N I A   &   H E R Z E G O V I N A

PROCREDIT BANK: Fitch Affirms 'B' Short-Term Currency IDRs


B U L G A R I A

* BLAGOEVGRAD MUNICIPALITY: Fitch Affirms BB+ LT Currency Ratings

D E N M A R K

* DENMARK: To Propose New Bill to End Spate of Lender Failures

G E R M A N Y

BOXLER GMBH: SCL Acquires Firm Out of Insolvency Proceedings
PHOENIX PHARMAHANDEL: Moody's Changes 'B1' CFR Outlook to Positive
PROCREDIT HOLDING: Fitch Affirms Individual 'D' Rating
SEMPER FINANCE: Fitch Affirms Rating on Class E Notes at 'Bsf'
STABILITY CMBS 2007-1: Fitch Affirms 'CC' Rating on Class E Notes

TITAN EUROPE: Fitch Cuts Ratings on Two Note Classes to 'Csf'


G R E E C E

OMEGA NAVIGATION: Gets Final Cash Collateral Use Approval
OMEGA NAVIGATION: Taps Seward & Kissel as Special Counsel
OPTI CANADA: 82% of 2nd Lien Holders Enter CCAA Plan Support Pacts


I R E L A N D

CBOM FINANCE: Fitch Assigns 'B+(exp)' Rating to Upcoming LPN Issue
EURO CARE: Goes Into Receivership, Owes EUR85 Million
QUINN GROUP: Monaghan Store Former Owners Challenge Receivership
SMURFIT KAPPA: Fitch Affirms Long-Term IDR at 'BB'
* IRELAND: Insolvency Figures Down 9% in July 2011


K A Z A K H S T A N

SOUTH OIL: Fitch Affirms Long-Term Currency IDRs at 'B'


L U X E M B O U R G

GEO TRAVEL: S&P Assigns 'B+' Long-term Corporate Credit Rating
REYNOLDS GROUP: Moody's Affirms 'B2' Corporate Family Rating


N E T H E R L A N D S

SEAARLAND SHIPPING: Files for Chap. 11 to Beat U.K. Ship Seizures
SEAARLAND SHIPPING: Voluntary Chapter 11 Case Summary
* NETHERLANDS: Bankruptcy Filings Down 7% in First Half 2011


R O M A N I A

* ROMANIA: Some State-Owned Companies May Collapse, President Says


R U S S I A

AKIBANK: Moody's Affirms 'E+' BFSR; Outlook Stable
AMT BANK: Moody's Cuts National Scale Rating to 'C.ru'
AMT BANK: Moody's Downgrades Long-Term Deposit Ratings to 'C'
POLYMETAL OJSC: Fitch Affirms IDRs at 'B'; Outlook Stable
VTB INSURANCE: Fitch Upgrades IFS Rating to 'BBB-' From 'BB'


S L O V A K   R E P U B L I C

OTP BANKA: Moody's Cuts Long-term Bank Deposit Rating to 'Ba1'


S P A I N

BANCO DE VALENCIA: Fitch Downgrades Long-Term IDR to 'BB-'
MADRID RMBS: Fitch Affirms Ratings on Class E Notes at 'CCsf'


S W E D E N

SAAB AUTOMOBILE: Workers Union to Send Payment Requests This Week
STENA AB: Moody's Affirms 'Ba2' Ratings; Outlook Negative


U N I T E D   K I N G D O M

AFREN PLC: Fitch Affirms Long-Term Foreign Currency IDR at 'B'
CHARLES LE QUESNE: Goes Into Liquidation
COLIN HUTTON: Goes Into Liquidation; 50 Jobs Lost
COLNE PRECINCT: Owners Go Into Administration
DRAGON FEEDS: In Liquidation; MP Seeks Probe on GBP1.03MM Funds

FS MOORE: DG3 Europe Acquires Firm Out of Administration
NORTHERN ROCK: Losses Down to GBP68.5 Mil. in 6-Mos. Ended June 30
TJ HUGHES: Sale of 53 Remaining Stores Hits Road Block


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            *********


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B E L G I U M
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ETHIAS SA: Fitch Affirms Subordinated Debt Rating at 'B'
--------------------------------------------------------
Fitch Ratings has affirmed Ethias S.A.'s Insurer Financial
Strength (IFS) rating and Issuer Default Rating (IDR) at 'BBB-'.
Both ratings have Stable Outlooks. Fitch has also affirmed the
company's subordinated debt rating at 'B'. At the same time, Fitch
has affirmed Ethias Droit Commun's IFS rating at 'BBB-'. The
rating has a Stable Outlook.

The rating affirmations reflect Fitch's expectation that
additional support would be provided to Ethias by the Belgian
authorities should the need arise. The authorities' majority
ownership of the insurance company, combined with the company's
activity as a provider of insurance to Belgian public
organizations and their employees, is key in reaching this
conclusion.

Management is making vigorous efforts to implement the European
Commission's (EC) restructuring plan, which is aimed at restoring
the group's profitability and raising capital adequacy levels by
2013. As such, Fitch notes positively the solid EUR225 million
operational profit posted by the group in 2010, but expects
results for 2011 to be depressed by one or more non-recurrent
items.

The main restructuring measures in hand are the disposal of the
reinsurance subsidiary Bel Re, an insurance subsidiary
distributing through brokers, Nateus and its banking operation
Ethias Banque. In addition, Ethias has announced the disposal of
its entire stake in Dexia to its parent company Ethias Finance.
Fitch expects long-term funding for this transaction to be
implemented by end-2011. In addition, management is seeking to
dispose of Ethias's retail life business by end-2013.

The Stable Outlook reflects Fitch's expectation that there will be
no change to Ethias's ownership in the next 12-24 months.

Despite solid operational profitability, Ethias's capital adequacy
did not improve in 2010 and remains low for the 'BBB' category.
This capital position follows significant unrealized capital
losses on fixed income investments and the impairment passed on
the shareholding in Dexia to reduce the group exposure. The
regulatory solvency ratio of the group declined to 162% at FYE10
compared with 171% at FYE09. The group received EUR1.5 billion
support in December 2008 in equal measure from the Belgian federal
government and the Flanders and Walloon regions which was crucial
in enabling it to continue its operations.

The affirmation of Ethias's subordinated debt reflects the reduced
risk of coupon deferral as the EC did not impose any constraints
on this debt. Nevertheless, both execution risk and limited
capital adequacy buffer above the optional coupon deferral
threshold set at 150% of regulatory minimum continue to justify a
low non-investment grade rating for this issue.

The ratings could be downgraded if Fitch believed that the Belgian
authorities would be less likely to provide support to Ethias in
case of need.

The ratings could be upgraded if the remaining measures requested
by the EC were implemented with limited adverse effects on the
group's franchise, and a clear demonstration of Ethias S.A.'s
ability to rebuild capital strength to bring it back fully into
line with Fitch's expectations for a company rated in the 'BBB'
category.

As a group, Ethias is one of the leading composite insurers in
Belgium with EUR2.6 billion consolidated gross written premiums in
2010.


=======================================
B O S N I A   &   H E R Z E G O V I N A
=======================================


PROCREDIT BANK: Fitch Affirms 'B' Short-Term Currency IDRs

----------------------------------------------------------
Fitch Ratings has affirmed ProCredit Bank (Bosnia and
Herzegovina's) (PCBiH) and ProCredit Bank (Bulgaria's) (PCB)
ratings.

Both banks' IDRs and Support Ratings reflect Fitch's view of the
potential support available from the banks' owners, in particular
Frankfurt-based ProCredit Holding AG (PCH; 'BBB-'/Stable), which
at end-H111 had total assets of around EUR5bn. PCH is the largest
shareholder of both banks, with a stake of 93.6% in PCBiH and 80%
in PCB at end 2010. PCH'S IDRs and Support Ratings in turn reflect
the agency's view of the potential support available from its
institutional shareholders, in particular from a group of
international financial institutions (IFIs), which are key voting
shareholders.

However, the potential support for PCBiH, and hence its Support
Rating and foreign currency IDRs, are constrained by Fitch's
assessment of currency transfer and convertibility risks in
Bosnia. Consequently, its foreign currency IDRs and Support Rating
could be upgraded or downgraded if Fitch's view of these risks
changed.

PCBiH's Viability Rating reflects the difficult operating
environment and the bank's continuing weak profitability, which
put pressure on capitalization. PCBiH was loss making at both pre-
impairment and operating levels in 2010 -- a trend that has
continued into Q111. Furthermore, profitability is unlikely to
improve significantly for the foreseeable future given the still
challenging operating environment, and the bank is set, at best,
to break even in 2011. However, this is balanced by PCBiH's
acceptable asset quality that remains better than sector average
and satisfactory liquidity.

PCB's Viability Rating reflects its high loan impairment charges
(LICs) and a tightening net interest margin, which have put
pressure on its performance, and the slight deterioration in its
asset quality. It also considers PCB's level of restructured
loans, which could result in additional LICs for the bank at a
later date. However, asset quality remains acceptable and the
bank's performance has picked up in H111, on the back of loan
growth and as restructuring efforts have started to pay off. In
addition, the Viability Rating considers PCB's moderate liquidity
and capitalization.

In addition, the Viability Ratings of both banks are enhanced by
their relatively strong management, solid corporate governance and
robust risk management systems and practices, which ensue from the
entities being part of the ProCredit group of banks.

The rating actions are:

PCBiH:

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

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

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

   -- Viability Rating: affirmed at 'b-'

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

   -- Support Rating: affirmed at '4'

PCB:

   -- Long-term foreign currency Issuer Default Rating (IDR):
      affirmed at 'BB+'; Outlook Stable

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

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

   -- Viability Rating: affirmed at 'b+'

   -- Individual Rating: affirmed at 'D'

   -- Support Rating: affirmed at '3'


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


* BLAGOEVGRAD MUNICIPALITY: Fitch Affirms BB+ LT Currency Ratings
-----------------------------------------------------------------
Fitch Ratings has affirmed the Bulgarian Municipality of
Blagoevgrad's Long-term foreign and local currency ratings at
'BB+' and Short-term foreign currency rating at 'B'. The Outlooks
for the Long-term ratings remain Negative.

The ratings reflect Blagoevgrad's still debt free position, its
improving operational management and the support provided by the
central government. The Negative Outlook reflects Fitch's
expectation that Blagoevgrad's operating performance will remain
negative over the short-to medium term, leaving it dependent on
asset sales to balance its accounts. Fitch expects its operating
balance to turn negative by about BGN1.5 million on average in
2011-2012, a relatively low figure for its rating category. The
municipality projects a negative result of about 15% of operating
revenue.

A negative rating action would result from a failure to restore
the operating performance to the levels achieved before 2009 of
more than 3.5%. Increased self-funding capacity will be required
before contracting debt. Conversely, an operating margin above 5%,
improved financial flexibility and a higher predictability of
transfer payments would be rating positive.

In Fitch's scenario of Bulgaria's GDP growing by 2.5% in 2011 and
4% in 2012, cuts in state transfers, about 70% of Blagoevgrad's
operating revenue, will be lower than the 20% projected by the
municipality. Economic dynamism should also support the stability
of local taxes. Local wealth levels are about 30% below the
national average and Bulgaria's GDP accounted for 43% of the EU27
average at purchasing power parity in 2010. Sofia's growing
economic importance impedes increases in wealth in other Bulgarian
cities, and in Blagoevgrad in particular.

Fitch expects 2011-2012 operating costs growth to be slightly
above the forecast inflation rate of 2.8% for 2011. The agency
expects Blagoevgrad's cost-control capacity to benefit from the
completion of the 2005-2010 BGN35 million investments that
modernized water supply, sewerage networks and most school and
social housing buildings. Past high ordinary maintenance costs
should therefore decline. Despite a quite rigid operating spending
structure, of which staff accounts for about 50%, Blagoevgrad kept
costs growth low at 2.5% on average in 2009-2010, after previously
being significantly higher, above 15%.

Blagoevgrad was debt free in 2010 and has no plans to contract
debt in 2011-2012. As a result of its ability to attract EU funds
and capital transfers, and active real estate asset management, it
achieved a surplus in 2010 and its self-financing capacity remains
high at 100% since 2006. Fitch believes Blagoevgrad will achieve a
balanced budget without taking on debt for the scheduled
investments of about BGN3.8m in 2011. Blagoevgrad's contingent
liabilities are negligible and its liquidity position is adequate
at about BGN2 million or 5% of operating revenue.

Blagoevgrad is highly dependent on state transfers, subject to
annual appropriations. This limits the municipality's financial
flexibility. Some financial leeway is provided by local taxes. The
current tax rates are low in the Bulgarian context, and
Blagoevgrad could achieve additional revenue if needed of up to 6%
of operating revenue. The municipality established a tourism tax
in 2011 but the scheduled contribution is low.

Blagoevgrad, with about 84,000 inhabitants, is located about 100
kilometers south of Bulgaria's capital Sofia, near the borders
with Greece, Serbia and Macedonia. It is the economic and cultural
center of the Region of Blagoevgrad.


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


* DENMARK: To Propose New Bill to End Spate of Lender Failures
--------------------------------------------------------------
Tasneem Brogger at Bloomberg News reports that Denmark is close to
proposing a new bank bill that will seek to end a spate of lender
failures and help sidestep the European Union's toughest
resolution laws.

According to Bloomberg, Torsten Schack Pedersen, spokesman for the
ruling Liberal Party in charge of Economy and Business Affairs,
said that lawmakers are in talks with industry representatives to
hammer out the details of a bill that will make it easier for
healthy banks to take over their troubled peers after legislation
passed in June failed to spur consolidation.

"We've started talks with the financial industry to try to see
whether we can find some extra tools," Bloomberg quotes Mr. Schack
Pedersen as saying in a phone interview on Tuesday in Copenhagen.
"It's our starting point that we won't ask tax payers to foot the
bill; there could be ways of coming up with constructions that
make it easier for a troubled bank to be taken over by a healthier
bank."

Lawmakers have come under pressure to amend existing laws after
the failure of two regional lenders this year triggered the EU's
first senior creditor losses within a resolution framework,
Bloomberg notes.

Standard & Poor's said on July 28 that a further 15 banks in the
Nordic country "could default" costing as much as DKK12 billion
(US$2.3 billion) in the next three years, Bloomberg recounts.

"There's a meeting with the party representatives who signed the
original bill at the end of next week," Mr. Schack Pedersen, as
cited by Bloomberg News, said, adding a deal might be presented by
the middle of August.

Mr. Schack Pedersen said that in an effort to protect taxpayers,
the government will probably ask banks to contribute any further
funds needed to stabilize the industry, Bloomberg notes.

Denmark's regional lenders face a spate of insolvencies "due to
loans made to the commercial property and agricultural sectors
during a short boom in 2005-2007," S&P analyst Per
Toernqvist said in last week's report, Bloomberg recounts.


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G E R M A N Y
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BOXLER GMBH: SCL Acquires Firm Out of Insolvency Proceedings
------------------------------------------------------------
EUWID reports that Boxler Gmbh & Co. Kg, which has been insolvent
since December 2010, has been taken over by SCL Schober with
retrospective effect as from July 1, 2011.

A relevant agreement concerning the transferred reorganization was
signed on July 15, EUWID says.

EUWID relates that SCL said business operations are to be
continued as usual with Boxler's former 72 employees for the
immediate future.  In the medium term, however, SCL is to
consolidate certain areas such as the interior fittings
activities, and to expand the range of floorings.

Boxler Gmbh & Co. Kg is a Germany-based laminate and timber
flooring manufacturer.


PHOENIX PHARMAHANDEL: Moody's Changes 'B1' CFR Outlook to Positive
------------------------------------------------------------------
Moody's has changed the outlook on the B1 Corporate Family Rating
(CFR) and senior notes rating of PHOENIX Pharmahandel GmbH & Co KG
and the group's finance vehicle PHOENIX PIB Finance B.V. to
positive from stable.

"The change in outlook is a reflection of the group's commitment
and ability to reduce its leverage as well as Phoenix group's
proactive approach to improve its debt maturity profile. Assuming
a continuation of the group's solid operating performance which in
turn should support a further deleveraging, these measures should
position the group well for an upgrade to Ba3 in the short to
medium term" notes Sabine Renner, a Moody's Assistant Vice
President and lead analyst for Phoenix group.

Ratings Rationale

Phoenix group's B1 rating reflects the group's relatively high
leverage, which however is mitigated by its leading position as
one of the top three players in the European pharmaceutical
wholesale market as well as by the well established and resilient
business model.

Since the B1 rating was assigned in 2010, Phoenix group
successfully dealt with some of the factors which initially
constrained the rating. The group proactively managed to improve
its initially rather concentrated debt maturity schedule as
reflected by extending EUR400 million of facilities by two years
to 2015, with an extension of additional EUR200 million currently
being discussed. In addition, Phoenix group also proved its
commitment to reduce its leverage by applying free cash flow
generated to the reduction of debt ahead of the initial maturity
(EUR215 million by February 2011). The group's willingness to
reduce its leverage was supported by a solid operating performance
in the financial year ending January 2011, during which Phoenix
group, despite a difficult market environment in some of its
markets, generated a 2% top line growth and maintained a stable
adjusted EBITDA Margin of 3.2%. The stable level of funds from
operations reported were complemented by significant working
capital releases which led to net debt figures well below
expectations and a leverage of 4.5x adjusted net debt/EBITDA (5.3x
adjusted debt/EBITDA). Going forward Moody's does not expect
significant working capital releases in the magnitude of what was
achieved in the last two financial years, but rather a continued
build up of working capital in line with the expected top line
growth.

The positive outlook incorporates Moody's expectations that
Phoenix group will be able to mitigate continued pressures
stemming from healthcare reforms in some of its markets, which
should allow the group to further reduce its leverage to levels
commensurate with a Ba3 rating. As swings in working capital
typically lead to fluctuations in leverage metrics which tend to
be lowest at financial year-end, Moody's would expect Phoenix
group to meet defined thresholds on a sustainable basis throughout
the year. The positive outlook also assumes that future
acquisitions will come through as opportunistic bolt-on
acquisitions that remain limited in size.

An upgrade to Ba3 could be considered if Phoenix group is able to
reach a net debt/EBITDA around 4.5x and a CFO/Debt around 10% on a
sustained basis. At the same time, Moody's expects the EBITDA
Margin to be above 3.0%.

Moody's would consider to stabilize the outlook in case of a major
shortfall of the group's full year 2011/12 performance
expectations. Downward pressure could arise if leverage would move
towards 5.5x net Debt/EBITDA, CFO/Debt would sustainably be well
below 10% or in case of major debt financed acquisition or any
major impact on the group's performance stemming from health care
reforms.

Phoenix group's ratings were assigned by evaluating factors that
Moody's considers relevant to the credit profile of the issuer,
such as the group's (i) business risk and competitive position
compared with others within the industry; (ii) capital structure
and financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Phoenix group's core
industry and believes Phoenix group's ratings are comparable to
those of other issuers with similar credit risk. Other
methodologies used include Loss Given Default for Speculative
Grade Issuers in the US, Canada, and EMEA, published June 2009.

Phoenix group is one of the three leading European pharmaceutical
wholesalers with activities in 23 countries and leading market
positions in major markets such as Germany, Italy, Sweden, Finland
and the UK. Furthermore, the group has a strong retail base across
a number of selected geographies. In the financial year ended
January 2011 Phoenix group generated revenues of EUR21.7 billion.
It is almost 100% owned by the Merckle family.


PROCREDIT HOLDING: Fitch Affirms Individual 'D' Rating
--------------------------------------------------------
Fitch Ratings has affirmed ProCredit Holding AG's (PCH Group)
Long-term foreign currency Issuer Default Rating (IDR) at 'BBB-'
with a Stable Outlook, Support Rating at '2' and Viability Rating
at 'bb-'.

The IDRs and Support Rating reflect the support it could expect to
receive from its owners, and in particular from a group of
international financial institutions (IFIs) which are key voting
shareholders, due to the group's specialized developmental focus.

PCH Group's Viability Rating reflects the challenging operating
environment in several of the group's countries of operation and
the ensuing deterioration in the group's asset quality ratios and
performance in 2009/2010. However, this is balanced by asset
quality ratios which have nevertheless remained reasonable
throughout the global economic crisis and are often better than
the average in each country. Group profitability has also picked
up in H111. PCH Group's Viability Rating also reflects its
reasonable liquidity, low refinancing risk, sound management,
solid corporate governance and robust risk management systems and
practices.

Downward pressure on PCH Group's Viability Rating could result
from a significant deterioration in asset quality, performance and
capitalization. Upward pressure is limited given the difficult
markets in which the group operates and also heightened, albeit
moderating, credit risks.

PCH Group's performance has picked up in H111 supported by lower
interest expense, mainly reflecting a change in deposit
composition, a strong focus on cost efficiency, and a rise in fee
income -- all strategic priorities for the group. Loan impairment
charges, which absorbed 72% of pre-impairment operating profit in
2010, were also lower in H111 versus H110 and management expects
them to fall yoy in 2011 as asset quality improves.

Loans overdue by 30 days or more (PAR30) rose to a still moderate
4.2% of gross loans at end-June 2011 (end-2010: 3.7%). This ratio
excludes potentially problematic 'Watch' and 'Impaired'
restructured loans not captured by the PAR30 measure because the
loans are not in arrears or are in arrears by under 30 days.
However, around 20% of these latter two categories of restructured
loans typically become overdue by 30 days or more, implying
further arrears are possible in these portfolios.

However, Fitch notes that this ratio is distorted to some extent
by concentration in two markets. Consequently, PCH Group makes a
12% portfolio-based provision against both of these categories of
restructured loans. Management reports that the bulk of new PAR30
loans within the PCH Group are actually being derived from the
'Watch' and 'Impaired' restructured loan books. However,
management estimates that the majority of the latter loans were
granted pre-crisis -- implying that the quality of loans granted
since then has improved. In addition, Fitch notes that 'Watch' and
'Impaired' restructured loans that are not overdue by 30 days or
more are fairly small relative to gross loans (3.9% at end-June
2011).

PCH Group expects PAR30 loans to peak in H211 and for recoveries
to rise reflecting the group's enhanced recovery efforts. Reserves
coverage of overdue loans remains acceptable despite having
declined as a result of an increase in collateral cover as PCH has
shifted to larger average loan sizes, in line with strategy.

Group liquidity is comfortable and has been bolstered by the fall
in banks' single-name deposit concentration levels. However, the
loans/deposits ratio remains fairly high reflecting the group's
reliance on international financial institutions for longer-term
funding.

Capitalization is moderate and should be supported by improving
internal capital generation and new capital issuance. The planned
change in PCH Group's legal structure from a joint stock company
to a limited partnership is a positive for capitalization, among
other things, since it will result in the conversion of EUR31
million of non-voting preference shares, which are currently
treated as Tier 2 capital, into ordinary stock, which will instead
be treated as Tier 1 capital.

PCH is the Frankfurt-based holding company for the PCH group of 21
banks, which operate in eastern Europe, Latin America and Africa.
The group's strategy is to act as the 'house bank' for small
business and provide savings services to retail customers through
its 'neighborhood banks'. At end-June 2011 PCH Group had total
assets of around EUR5 billion.

The rating affirmations are:

   -- Long-term foreign currency Issuer Default Rating (IDR):
      'BBB-'; Outlook Stable

   -- Short-term foreign currency IDR: 'F3'

   -- Viability Rating 'bb-'

   -- Individual Rating 'D'

   -- Support Rating '2'

   -- Non-cumulative, perpetual preference shares 'BB-'.


SEMPER FINANCE: Fitch Affirms Rating on Class E Notes at 'Bsf'
--------------------------------------------------------------
Fitch Ratings has affirmed Semper Finance 2007-1 GmbH's commercial
mortgage-backed floating-rate notes:

Class A1 (XS0305670308): Paid-in-Full (PIF)

   -- EUR178,096 Class A1+ (XS0305670647) affirmed at 'AAAsf';
      Outlook Stable

   -- EUR10,000,000 Class A2 (XS0305670993) affirmed at 'AAAsf';
      Outlook Stable

   -- EUR51,800,000 Class B (XS0305671298) affirmed at 'AAsf';
      Outlook revised to Stable from Negative

   -- EUR51,700,000 Class C (XS0305671454) affirmed at 'BBBsf';
      Outlook revised to Stable from Negative

   -- EUR49,100,000 Class D (XS0305672262) affirmed at 'BBsf';
      Outlook Negative

   -- EUR20,300,000 Class E (XS0305672692) affirmed at 'Bsf';
      Outlook Negative

   -- EUR8,700,000 Class F (XS0305672858): not rated

   -- EUR11,400,000 Class G (XS0305673070): not rated

   -- EUR7,683,722 Threshold Amount: not rated

The affirmation is driven by the broadly stable transaction
performance over the past year, combined with the full repayments
of a number of loans and scheduled amortization, both factors
reducing the outstanding principal balance to EUR492.5 million
from EUR1.00 billion at closing. In addition, all principal
proceeds were applied sequentially, thereby increasing credit
enhancement to all note classes.

Reported credit events on the reference portfolio (bankruptcy of
the relevant borrower or failure to pay), have risen to 7.1% of
the pool by loan balance from 3% at the time of Fitch's last
review and consist of sixteen loans. Whilst some previously
defaulted loans have paid in full, others have remained in
standstill for over three years. The increasing number of credit
events is the main driver for maintaining the Negative Outlook on
the class D and E notes.

In February 2008, Eurohypo AG ('A-'/Stable/'F1') paid the Class A1
in full for regulatory reasons, by exercising its call option. The
call does not change the risk profile of the remaining notes
because it did not reduce the balance of the reference pool on
which protection was bought. Eurohypo simply opted to give up its
protection against credit losses exceeding a certain amount.

The portfolio has seen an improvement in the weighted average (WA)
vacancy rate to 4.2% (from 6.9% at closing), the WA interest
coverage ratio (ICR) improved to 3.71x from 2.1x. The reported WA
loan-to-value (LTV) improved to 67% as of the May 2011 payment
date from 72.2%. Despite these improvements in performance, Fitch
considers the increase in credit events on the portfolio a sign of
growing risk of further loan defaults in the near- to medium-term.
The substantial amortization scheduled for the majority of the
loans, should mitigate the risk of collateral underperformance for
the classes A1+ to C.


STABILITY CMBS 2007-1: Fitch Affirms 'CC' Rating on Class E Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed STABILITY CMBS 2007-1 GmbH's senior
swap and commercial mortgage-backed floating-rate notes:

   -- EUR309,863,892 senior swap affirmed at 'AAAsf'; Outlook
      revised to Stable from Negative

   -- EUR213,176 Class A+ (DE000A0N30Z7) affirmed at 'AAAsf';
      Outlook revised to Stable from Negative

   -- EUR31,800,000 Class A (DE000A0N3005) affirmed at 'Asf';
      Outlook revised to Stable from Negative

   -- EUR46,400,000 Class B (DE000A0N3013) affirmed at 'BBBsf';
      Outlook revised to Stable from Negative

   -- EUR30,500,000 Class C (DE000A0N3021) affirmed at 'BBsf';
      Outlook revised to Stable from Negative

   -- EUR30,400,000 Class D (DE000A0N3039) affirmed at 'Bsf';
      Outlook revised to Stable from Negative

   -- EUR28,200,000 Class E (DE000A0N3047) affirmed at 'CCsf';
      assigned Recovery Rating 'RR6'

The affirmation is driven by the broadly stable transaction
performance over the past year, combined with the full repayments
of a number of loans and scheduled amortization, both factors
reducing the outstanding principal balance to EUR492.0 million
from EUR909.2 million at closing. In addition, all principal
proceeds were applied sequentially, thereby increasing credit
enhancement to all note classes and considerably reducing the
balance of the senior swap obligation and class A+ notes. The
revision of Outlooks to Stable from Negative reflects the reduced
number of arrears on the portfolio.

STABILITY is a synthetic securitization of commercial mortgage
loans originated by IKB Deutsche Industriebank AG (not rated). As
per the July 2011 investor report, STABILITY provided credit
protection for a portfolio of 110 commercial mortgage loans to 62
debtor groups. While 33 large claims granted to special-purpose
vehicle (SPV) borrowers represent approximately 68% of the current
pool balance, the remainder consists of generally granular non-SPV
loans with borrower recourse.

Of the largest three exposures, which account for 35% of the
reference pool balance, the top two are syndicated portions of
large loans. Despite the size of the loans and their imminent
maturity dates, in 2013 and 2012 respectively, the loans benefit
from strong tenant covenants and long unexpired lease terms which
should make the refinancing of these loans easier in the current
commercial real estate lending market.

The remainder of the portfolio comprises 81 office, retail and
mixed-use properties located throughout predominantly in Germany.
The loans currently report a weighted average (WA) loan-to-value
ratio of 59.75% and a WA interest coverage ratio of 2.70x. There
is only one loan in arrears accounting for 0.6% of the pool
balance.


TITAN EUROPE: Fitch Cuts Ratings on Two Note Classes to 'Csf'
-------------------------------------------------------------
Fitch Ratings has downgraded Titan Europe 2006-5 plc's class E and
F notes and affirmed all other classes:

   -- EUR294.3m Class A1 (XS0277721618) affirmed at 'AAsf';
      Outlook Stable

   -- EUR109m Class A2 (XS0277725361) affirmed at 'Asf'; Outlook
      revised to Stable from Negative

   -- EUR60m Class A3 (XS0277726500) affirmed at 'BBB-sf'; Outlook
      Negative

   -- EUR55.1m Class B (XS0277728381) affirmed at 'Bsf'; Outlook
      Negative

   -- EUR41.7m Class C (XS0277729439) affirmed at 'CCCsf'; RR4

   -- EUR35.9m Class D (XS0277732144) affirmed at 'CCsf'; RR6

   -- EUR4.9m Class E (XS0277733548) downgraded to 'Csf' from
      'CCsf'; RR6

   -- EUR11.9m Class F (XS0277734199) downgraded to 'Csf' from
      'CCsf'; RR6

The downgrade of the class E and F notes is driven by the
increased likelihood of losses being realized on two of the three
largest loans in this transaction, the EUR240.7 million Diva
Multifamily Portfolio loan and the EUR114.8 million Quartier 206
Shopping Centre loan.

The Diva Multifamily Portfolio loan is the largest exposure in
this transaction and represents 39.2% of the outstanding pool. The
loan is backed by 14 multifamily housing properties located in
Berlin and the former East Germany. The loan is currently being
worked out; it has been in special servicing since 2008 due to the
insolvency of the sponsor, a member of the Level One Group. The
portfolio was re-valued in March 2011 at EUR200.9 million, which
results in a loan-to-value ratio on the securitized A-note loan of
119.8%. Consequently, Fitch expects a loss to be realized on the
junior bonds upon completion of the sale of the assets.

The Quartier 206 Shopping Centre loan is secured by a
retail/office mixed-use property located in the central Berlin
area of Friedrichstrasse. The property's performance deteriorated
significantly in early 2010 following a severe reduction in rental
income and was subsequently transferred to special servicing due
to a payment default. The borrower has not been able to meet its
interest commitments since this time; as of the last interest
payment date (IPD), the debt service cover ratio was 0.36x. Given
the financial difficulties facing this loan, Fitch believes that
the special servicer will not be able to avoid realizing a loss.
This expectation, combined with the Diva loan, is reflected in the
downgrade of the class E and F notes.

Titan Europe 2006-5 plc closed in December 2006 and was originally
the securitization of eight commercial loans originated by Credit
Suisse ('AA-'/'F1+'/Rating Watch Negative). At the first IPD, the
EUR40.2m Hotel Balneario Blancafort loan defaulted due to the non-
payment of debt service and was subsequently repurchased by the
originator. No other loans have since repaid, leaving the
portfolio with seven loans secured over 40 properties located
across Germany with an aggregate securitized balance of EUR613.9
million.


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


OMEGA NAVIGATION: Gets Final Cash Collateral Use Approval
---------------------------------------------------------
Omega Navigation Enterprises Inc. received final approval from a
bankruptcy judge in the United States on Aug. 1 to use cash
representing collateral for the secured lenders.

As reported in the Aug. 1, 2011 edition of the Troubled Company
Reporter, the Debtors' debt includes:

   1. Approximately US$242.72 million under the Senior Facility
      where HSH Nordbank AG, is agent, security agent and trustee,
      and HSH Nordbank AG, Credit Suisse, The Governor and Company
      of the Bank of Scotland, and Dresdner Bank AG are lenders.
      The Senior Facility is secured by, among other things,
      Vessel Owners' guarantees, first priority mortgages, first
      priority assignment of insurances in respect to the vessels,
      and first priority assignment of each of the vessels'
      earnings.

   2. Approximately US$36.2 million under the Junior Credit
      Agreement where The Bank of Tokyo-Mitsubishi UFJ, Ltd, New
      York Branch and NIBC Bank N.V. are swap banks, NIBC Bank
      N.V. is appointed agent, and BTM and NIBC Bank N.V. are
      lenders.  The Junior Credit Agreement is secured by, among
      other things, Vessel Owners' guarantees, second priority
      mortgages, second priority assignment of insurances in
      respect to the vessels, and second priority assignment of
      each of the vessels' earnings.

   3. US$5,250,000 under secured demand convertible promissory
      Note between Omega and One Investments, Inc. dated July 16,
      2010.  The Promissory Note is due on demand at any time
      after its first anniversary.  The Promissory Note is secured
      by a pledge of all shares of Omnicrom Holdings Ltd. and a
      guarantee by Omnicrom Holdings Ltd.  Georgios Kassiotis is
      the president of One Investments, Inc.  Mr. Kassiotis is
      also an officer of each of the Debtors and a director of
      each of the Debtors (except for Omega Navigation (USA) LLC,
      which is member managed).

In their request to access cash collateral, the Debtors said that
as of the Petition Date, they do not have sufficient unencumbered
cash to fund their business operations and pay present operating
expenses.  The Debtors have an urgent need for the immediate use
of the Cash Collateral to fund the operating expenses.

The Debtors believe that the prepetition lenders are adequately
protected for the use of the cash collateral in that the orderly
liquidation value of the prepetition lenders' collateral exceeds
the amounts outstanding under the Senior Facility and Junior
Credit Agreement.  Specifically, as of the Petition Date, the
prepetition lenders' combined debt is approximately US$278.9
million and the book value of the vessels exceeds US$390 million.

As additional adequate protection, the Debtor will grant the
prepetition lenders for the use of the replacement liens in
accounts receivable, including cash generated or received by the
Debtors subsequent to the Petition Date.

                      About Omega Navigation

Athens, Greece-based Omega Navigation Enterprises Inc. and
affiliates, owner and operator of tankers carrying refined
petroleum products, filed for Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston, Texas,
in the United States.

Omega is an international provider of marine transportation
services focusing on seaborne transportation of refined petroleum
products.  The Debtors disclosed assets of US$527.6 million and
debt totaling US$359.5 million.  Together, the Debtors wholly own
a fleet of eight high-specification product tankers, with each
vessel owned by a separate debtor entity.

Bracewell & Giuliani LLP serves as counsel to the Debtors.
Jefferies & Company, Inc., is the financial advisor.


OMEGA NAVIGATION: Taps Seward & Kissel as Special Counsel
---------------------------------------------------------
BankruptcyData.com reports that Omega Navigation Enterprises filed
with the U.S. Bankruptcy court motions to retain Seward & Kissel
(Contact: Edward S. Horton) as special counsel at these hourly
rates: partner at US$595 to US$820 and associate at US$335, and
Jefferies & Company (Contact: Tero Janne) as financial advisor and
investment banker for a monthly fee of US$125,000 and a
restructuring fee of US$2.8 million.

                      About Omega Navigation

Athens, Greece-based Omega Navigation Enterprises Inc. and
affiliates, owner and operator of tankers carrying refined
petroleum products, filed for Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston.

Omega is an international provider of marine transportation
services focusing on seaborne transportation of refined petroleum
products.  The Debtors disclosed assets of US$527.6 million and
debt totaling US$359.5 million.  Together, the Debtors wholly own
a fleet of eight high-specification product tankers, with each
vessel owned by a separate debtor entity.

Bracewell & Giuliani LLP serves as counsel to the Debtors.
Jefferies & Company, Inc., is the financial advisor.


OPTI CANADA: 82% of 2nd Lien Holders Enter CCAA Plan Support Pacts
------------------------------------------------------------------
OPTI Canada Inc. and CNOOC Limited have entered into support
agreements with holders of Second Lien Notes pursuant to which the
Noteholders have agreed to vote in favor of the Company's
transaction with subsidiaries of CNOOC Limited, as announced on
July 20, 2011.  Noteholders who collectively hold approximately
82% of the principal amount of outstanding Second Lien Notes have
entered into the Support Agreements.  The Transaction is subject
to approval by a majority in number of Noteholders, holding at
least 66 2/3% of the principal amount of the Company's Second Lien
Notes, who vote at the meeting of Noteholders to be held in
September 2011.

If the Transaction is terminated, other than pursuant to a
Superior Proposal, the parties to the Support Agreements have
agreed, in certain circumstances, to pursue the restructuring
plan.

The Transaction will be effected by way of a plan of arrangement
through concurrent proceedings under the Companies' Creditors
Arrangement Act and the Canada Business Corporations Act.

                             About OPTI

OPTI Canada Inc. is a Calgary, Alberta-based company focused on
developing major oil sands projects in Canada.  Its first project,
the Long Lake Project, has a design capacity for 72,000 barrels
per day (bbl/d), on a 100 percent basis, of SAGD (steam assisted
gravity drainage) oil production integrated with an upgrading
facility.  The Upgrader uses the Company's proprietary OrCrude(TM)
process, combined with commercially available hydrocracking and
gasification.  OPTI's common shares trade on the Toronto Stock
Exchange under the symbol OPC.

OPTI on July 13, 2011, reached agreement with a committee of
Secured Notes holders to restructure the Company's balance sheet
under the Companies' Creditors Arrangement Act.  At June 30, 2011,
OPTI had roughly C$189 million in cash and cash equivalents.  In
addition, it holds restricted cash of US$73 million in an interest
reserve account associated with its US$300 million First Lien
Notes.


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


CBOM FINANCE: Fitch Assigns 'B+(exp)' Rating to Upcoming LPN Issue
------------------------------------------------------------------
Fitch Ratings has assigned Ireland-based CBOM Finance p.l.c.'s
upcoming issue of limited recourse loan participation notes an
expected Long-term 'B+(exp)' rating. The final rating is
contingent on the receipt of documents conforming materially to
information already received.

The proceeds are to be used solely for financing a loan to
Russia's Credit Bank Of Moscow (CBM), rated Long-term Issuer
Default Rating (IDR) 'B+', Short-term IDR 'B', National Long-term
Rating 'A-(rus)', Viability Rating of 'b+', Individual Rating 'D',
Support Rating '5' and Support Rating Floor 'NF'. The Outlooks for
CBM's Long-term IDRs and National Long-term rating are Stable.

The notes will have a put option exercisable if a put event
occurs, namely the current majority shareholder ceases, at any
time, to control directly or indirectly 50% plus one share of CBM,
or if the notes' or the bank's credit rating is downgraded.

CBM is a medium-sized Moscow-based bank focusing on corporate
lending, the 21st largest in Russia by assets at HY2011, owned by
Roman Avdeev.


EURO CARE: Goes Into Receivership, Owes EUR85 Million
-----------------------------------------------------
The Nationalist reports that Euro Care International, the company
which owns Whitfield Clinic, has gone into receivership with
EUR85 million in debt.

Anglo Irish Bank appointed Kieran Wallace and Barry Donohue of
KPMG as 'share receivers' to the company, according to The
Nationalist.  The 'share receivership' means the hospital itself
is not in receivership so any debt it owes cannot be walked away
from under its new controllers, the report relates.

The Nationalist discloses that receivers appointed Philomena
Shovlin as interim manager to run the hospital, and also added a
number of directors to the board of the company.

The receivers say they have no plans to sell the business as yet,
with the focus understood to be on keeping the hospital trading in
order to repay the EUR85 million borrowed to finance the
development, The Nationalist notes.

The Nationalist, citing accounts filed for the company, relates
that Euro Care International's debt was secured by shares in the
hospital and is also backed by personal guarantees to Anglo Irish
Bank from owners Dr. Jim and his wife, Nee Keegan.

A statement on behalf of Euro Care said that this was not a
traditional company receivership and there would be no impact on
patient care, employment, trade creditors or the day-to-day
operations of the private hospital, The Nationalist adds.


QUINN GROUP: Monaghan Store Former Owners Challenge Receivership
----------------------------------------------------------------
Newstalk.ie reports that a Monaghan grocery store at the centre of
a recent stand-off is before the High Court over an order
restraining the former owners from trespassing on the land.

Quinn's Superstore in Carrickmacross was put in the hands of a
receiver in January 2010 over a EUR7.2 million debt to Anglo Irish
Bank, Newstalk.ie recalls.

The store's owner Michael and Bridget Quinn, Newstalk.ie relates,
tried to stop the receiver from changing the locks on their family
business in May 2010, after the supermarket got into financial
difficulty trying to repay a 2006 AIB loan secured to develop the
business.

The couple now wants, the report discloses, legal clarification
that part of the lands remains outside the control of the
receiver.

Lawyers for the receiver said that they will aggressively fight
the move arguing the company has a license to trade on all of the
land, Newstalk.ie says.  If the company did not have a license, an
absurd situation could arise whereby the receiver would be able to
operate the cash till but not the in-store coffee dock, the
lawyers added.

The case has been put back until next month, Newstalk.ie relays.

The Quinn Group -- http://www.quinn-group.com/-- is a business
group headquartered in Derrylin, County Fermanagh, Northern
Ireland. The privately owned group has ventured into cement and
concrete products, container glass, general insurance, radiators,
plastics, hotels and real estate.  It was formed by its Chairman
Sean Quinn in 1973, developing from a small quarrying operation in
Derrylin into the large organization, employing over 7,000 people
in various locations throughout Europe.


SMURFIT KAPPA: Fitch Affirms Long-Term IDR at 'BB'
--------------------------------------------------
Fitch Ratings has affirmed Smurfit Kappa Group Plc's Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'BB'. The Outlook
on the Long-term IDR is Stable.

The agency has also affirmed the ratings of Smurfit's related
entities: Smurfit Kappa Acquisitions' senior secured facilities
Affirmed at 'BB+, Smurfit Kappa Acquisitions' guaranteed senior
secured notes Affirmed at 'BB+', Smurfit Kappa Funding's senior
subordinated notes due 2015 Affirmed at 'BB-' and Smurfit Kappa
Treasury Funding's debenture notes due 2025 Affirmed at 'BB+'.

The affirmation of all the ratings reflects the progresses made by
Smurfit in improving its financial metrics in 2010, as well as the
current positive trend in the packaging market and the expected
reduction in the level of debt for FY2011.

"Fitch expects Smurfit to prioritize its deleveraging and believes
the improvement in free cash flow in 2011 should contribute to
reducing the level of debt," said Lorenzo Re, Director in Fitch's
Corporate team. "The market trend in 2011 has been so far
positive, although some cost inflation on raw materials --
especially OCC (Old Corrugated Containers) -- could put some
pressure on margins in coming months," Mr. Re added.

In 1Q11, Smurfit's revenue increased by 17.8% to EUR1.8 billion,
with a solid recovery in both European packaging and Latin America
operations. Reported recurring EBITDA improved by 32%, thanks to
price increases that more than offset raw material cost growth.
The EBITDA margin improved to 13.5% from 12.0% in 1Q10.

The Stable Outlook reflects Fitch's expectations of material
deleveraging. Based on its conservative assumptions, the agency
expects net debt /EBITDA to fall below 3.0x and funds from
operations (FFO) adjusted leverage to be close to 4.0x at end-
2011, thus putting the financial profile firmly in the 'BB'
category. Fitch's assumptions include a gradual increase in capex
for both 2011 and 2012 towards more normal levels (capex at 90%-
100% of depreciation) after capex had been squeezed in 2009 and
2010 to 57% and 72% of depreciation respectively.

Smurfit's liquidity is deemed adequate and comprises EUR500
million of cash plus an undrawn revolving facility of EUR525
million at end-2010. Fitch believes that the group could
comfortably manage the maturity in 2012 of the Tranche A of the
syndicated loan for a total of EUR164 million. The first
significant maturity is in December 2013, when a EUR815 million
tranche of the syndicated loan comes due.

A further reduction in Smurfit's leverage and improvement in
credit metrics, with FFO adjusted leverage falling to well below
3.0x, could lead to a positive rating action. A material
deterioration in the operating performance or re-leveraging with
FFO adjusted leverage worsening to above 4.5x could lead to a
negative rating action.


* IRELAND: Insolvency Figures Down 9% in July 2011
--------------------------------------------------
New statistics released by InsolvencyJournal.ie reveal that
insolvency figures for July totalled 152, a 9% increase from the
June total of 139.

The first seven months of 2011 saw a total of 971 appointments, a
6% increase on the total recorded for the same period in 2010
(917), InsolvencyJournal.ie discloses.

"We are not surprised by the continuing high levels of
insolvencies, as weak consumer sentiment and the ongoing financial
uncertainty in the euro zone continue to have an adverse effect on
business," InsolvencyJournal.ie quotes Ken Fennell of
kavanaghfennell, the firm who compile the data, as saying.

There were 39 Receivership appointments in July, a significant
increase of 105% on the June figure of 19, InsolvencyJournal.ie
says.  Comparing year on year, there is a 14% increase in
receivership appointments from 143 for January to July in 2010
compared to 163 so far this year, InsolvencyJournal.ie notes.

With regard to industry totals there was a 59% increase in
insolvencies in the construction sector this month, up from 32 in
June to 51 in July, the highest monthly totals so far this year,
InsolvencyJournal.ie states.  The construction industry has seen
254 failures so far this year, 26% of all insolvencies recorded
for 2011, however this is still a 9% decrease on the figures
recorded from January to July 2010, according to
InsolvencyJournal.ie.

The retail industry saw some respite during July with a 48%
decrease from 25 insolvencies in June to 13 in July,
InsolvencyJournal.ie notes.  Most noticeably the motor industry
saw a 100% increase in insolvencies for July, rising from 4 in
June to 8 this month, this rise is perhaps influenced by the
ending of the Government scrappage scheme in June this year,
InsolvencyJournal.ie discloses.

"Overall insolvencies remain stubbornly high and our predictions
for the year remain that there will be approximately 1,600
insolvencies during 2011."  Mr. Fennell, as cited by
InsolvencyJournal.ie, said.


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


SOUTH OIL: Fitch Affirms Long-Term Currency IDRs at 'B'
-------------------------------------------------------
Fitch Ratings has affirmed Kazakhstan-based South Oil LLP's Long-
term foreign currency and local currency Issuer Default Ratings
(IDR) at 'B' and National Long-term rating at 'BB(kaz)'. The
agency has simultaneously resolved the Rating Watch Negative (RWN)
and assigned Stable Outlooks to the company's Long-term ratings.
Fitch has also affirmed an expected local currency senior
unsecured rating at 'B'(exp) and expected national senior
unsecured rating at 'BB(kaz)(exp)' assigned to South Oil's planned
KZT1bn local bonds issue.

The resolution of the RWN reflects the fact that South Oil
obtained a waiver from the bank for breaching financial covenants
based on 9M10, 2010 and Q111 financial results stipulated in the
guarantee agreement in relation to the loan provided to South
Oil's related party and guaranteed by South Oil. The company was
able to negotiate the exclusion of one of the financial covenants
(e.g. cash ratio covenant) from the agreement. Fitch believes that
the exclusion of the cash ratio-related covenant from the
agreement could diminish the possibility of financial covenants
being breached by South Oil based on 2011's financial results.

The Stable Outlook takes into consideration a balance of risks
inherent in South Oil's business and financial profiles. This is
reflected in the combination of the company's adequate operational
metrics and solid credit profile compared with its similarly rated
peers, and conversely the execution risk related to the
implementation of production expansion strategy and weak
liquidity.


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


GEO TRAVEL: S&P Assigns 'B+' Long-term Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its final 'B+' long-
term corporate credit rating to European online travel agent Geo
Travel Finance SCA. The outlook is stable.

"At the same time, we assigned a final issue rating of 'BB-' and
final recovery rating of '2' to the EUR480 million senior secured
bank facilities to be initially borrowed by LuxGeo SARL, a
subsidiary of Geo. The recovery rating of '2' indicates our
expectation of substantial recoveries (70%-90%) in the event
of a payment default," S&P related.

"We assigned a final issue rating of 'B-' and final recovery
rating of '6' to the senior unsecured notes to be issued by Geo.
The recovery rating of '6' indicates our expectation of negligible
(0%-10%) recoveries in the event of a payment default," S&P said.

The ratings assigned are at the same level as the preliminary
ratings assigned on April 11, 2011, reflecting the successful
completion of funding and acquisition of Opodo as of June 30,
2011, after national antitrust and competition approvals from the
European Commission at the end of May. "The ratings reflect the
new entity's financial risk profile, which we view as highly
leveraged, particularly in light of about EUR115 million of
subordinated convertible shareholder bonds included in the
proposed capital structure. The ratings also reflect the highly
competitive online travel agent (OTA) market and the continuous
pressures on maintaining steady levels of service fees, which
account for about 40% of group revenues. Lastly, Geo is also
exposed to the seasonality and cyclicality of the travel industry,
albeit to a substantially lesser degree than traditional travel
operators. We also believe integration risks linked to the
transaction to be moderate," S&P said.

"These weaknesses are partly offset by our view of Geo's fair
business risk profile, supported by its leading position and scale
in the European OTA market, especially in its core flight market,
which offers, in our view, moderate barriers to entry," S&P
related.

"The stable outlook reflects our view that Geo is likely to
significantly reduce its adjusted leverage under the proposed
capital structure over the next few quarters, thanks to sustained
EBITDA growth, resilient free cash flow generation, and debt
reduction," S&P said.

"We could lower the rating if Geo's liquidity weakens
significantly, or if revenue and EBITDA growth fall to the low-
single-digits, leading to significant tightening of covenant
headroom and failure to deleverage in line with our expectations.
Similarly, we could lower the ratings if free cash flow
was to fall significantly short of expectations," S&P noted.

"We believe rating upside to be limited over the next 12 months
since the rating already takes into account our expectations of
continued sound revenue and EBITDA growth during the period," S&P
added.


REYNOLDS GROUP: Moody's Affirms 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service assigned ratings to Reynolds Group
Holdings Limited's proposed financing to acquire Graham Packaging
Company L.P. Moody's also confirmed Graham's B2 corporate family
rating, revised the outlook to negative in line with the RGHL
outlook, and concluded the review for downgrade. Graham's
corporate family and term loan rating will be withdrawn after
Reynolds completes Graham's acquisition, which is expected in
September 2011.

The assignment of ratings follows RGHL's announcement on July 25,
2011 that certain amendments to its senior secured credit facility
intended to facilitate the financing of its previously announced
acquisition of Graham have been approved by the requisite lenders.
RGHL also announced that it increased by US$500.0 million the
senior unsecured notes incurred in connection with the Graham
acquisition. The net proceeds from the increase in unsecured debt
financing will be used to repurchase any of Graham's senior
unsecured notes that are tendered in connection with change of
control offers at 101% of principal that will be made following
consummation of the Graham acquisition. Any remaining net proceeds
from the additional unsecured debt financing will be applied to
repay indebtedness coming due in the near-term, or to repay,
repurchase or otherwise retire other indebtedness.

Moody's took these rating actions:

Reynolds Group Holdings Limited

- Affirmed B2 CFR

- Affirmed B2 PDR

The ratings outlook is negative

Reynolds Group Holdings Inc

- Assigned definitive Ba3 (LGD 2, 26%) to US $2,000M Senior
  Secured Term Loan due 8/9/2018

- Affirmed Ba3 (LGD 2, 26% from 27%) EUR 80M Senior Secured
  Revolving Credit Facility due 11/5/2014

- Affirmed Ba3 (LGD 2, 26% from 27%) US $120M Senior Secured
  Revolving Credit Facility due 11/5/2014

- Affirmed Ba3 (LGD 2, 26% from 27%) US $2,325M Senior Secured
  Term Loan E in 2/9/2018

- Affirmed Ba3 (LGD 2, 26% from 27%) EUR 250M Senior Secured Term
  Loan E in 2/9/2018

Reynolds Group Issuer (Luxembourg) S.A., Reynolds Group Issuer LLC

- Assigned definitive Ba3 (LGD 2, 27%) US $1,500M 7.875% Senior
  Secured Notes due 8/15/2019

- Assigned definitive Caa1 (LGD 5, 77%) US $1,000M 9.875% Senior
  Unsecured Notes due 8/15/2019

- Affirmed Ba3 (LGD 2, 26% from 27%) US $1125M 7.750% Senior
  Secured Notes due 10/15/2016

- Affirmed Ba3 (LGD 2, 26% from 27%) EUR 450M 7.750% Senior
  Secured Notes due 10/15/2016

- Affirmed Ba3 (LGD 2, 26% from 27%) US $1,500M 7.125% Senior
  Secured Notes due 04/15/2019

- Affirmed Ba3 (LGD 2, 26% from 27%) US $1,000M 6.875% Senior
  Secured Notes due 02/15/2021

- Affirmed Caa1 (LGD 5, 77% from 79%) US $1,000M 8.500% Senior
  Unsecured Notes due 05/15/2018

- Affirmed Caa1 (LGD 5, 77% from 79%) US $1,500M 9.000% Senior
  Unsecured Notes due 04/15/2019

- Affirmed Caa1 (LGD 5,77% from 79%) US $1,000M 8.250% Senior
  Unsecured Notes due 02/15/2021

Beverage Packaging Holdings (Lux) II S.A.

- Affirmed Caa1 (LGD 5,77% from 79%) EUR 480M 8.000% Senior
  Unsecured Notes due 12/15/2016

- Affirmed Caa1 (LGD 6, 96%) EUR 420M 9.5% Sr. Subordinated Notes
  due 06/15/2017

Pactiv Corporation

- Affirmed Caa1 (LGD 6, 93%) US $250M 5.875% Notes due 07/15/2012

- Affirmed Caa1 (LGD 6, 93%) US $300M 8.125% Bonds due 06/15/2017

- Affirmed Caa1(LGD 6, 93%) US $250M 6.400% Notes due 01/15/2018

- Affirmed Caa1 (LGD 6, 93%) US $276.79M 7.950% Bonds due
  12/15/2025

- Affirmed Caa1 (LGD 6, 93%) US $200M 8.375% Notes due 04/15/2027

Graham Packaging Company L.P.

- Confirmed B2 CFR (To be withdrawn after transaction closes)

- Confirmed B2 PDR (To be withdrawn after transaction closes)

- Revised outlook to negative from under review for downgrade (To
  be withdrawn after transaction closes)

- Confirmed B1 (LGD 3, 35%) $124.8M revolver due 10/1/2013 (To be
  withdrawn after transaction closes)

- Confirmed B1 (LGD 3, 35%) $1038.1M term loan C due 4/5/2014 (To
  be withdrawn after transaction closes)

- Confirmed B1 (LGD 3, 35%) $913M term loan C due 9/23/2016 (To be
  withdrawn after transaction closes)

- Confirmed Caa1 (LGD 5, 77% from 83%) $253.38M Senior Unsecured
  Notes due 12/1/2017

- Confirmed Caa1 (LGD 5, 77% from 83%) $250M Senior Unsecured
  Notes due 10/1/2018

- Confirmed Caa1 (LGD 6, 96% from 94%) $375 million Senior
  Subordinated Notes due 10/7/2014

The ratings are subject to the closing of the acquisition and the
receipt and review of the final documentation.

Ratings Rationale

The B2 corporate family rating reflects RGHL's weak pro-forma
credit metrics, integration risk and limited operating history for
the combined entity. The rating and outlook also reflect the
company's lengthy raw material cost pass-through provisions,
concentration of sales within certain segments and
acquisitiveness/financial aggressiveness. Additionally, the
company has a complex capital and organizational structure and is
owned by a single individual. Pro-forma leverage and debt to
revenue are high at over 6.5 times and 100% respectively
(excluding synergies and including Moody's standard adjustments)
leaving the company little room within the rating category for
negative operating or integration variance. Additionally, pro-
forma EBIT to interest coverage is approximately 1 time and the
company has a significant percentage of variable rate debt. RGHL
is still integrating a large acquisition (Pactiv in November 2010)
and several smaller acquisitions. The company has only been
operating as a combined entity since 2007 and over 50% of pro-
forma revenues are from business which were acquired less than one
year ago.

Strengths in the company's profile include anticipated positive
free cash generation and management's commitment to dedicate free
cash flow to debt reduction over the intermediate term and refrain
from further significant acquisition activity. Strengths in the
company's profile also include its strong brands and market
positions in certain segments, scale and high percentage of blue-
chip customers. Despite the anticipated significant increase in
interest and other expenses, RGHL is anticipated to continue to
generate some level of free cash flow which management has pledged
will be applied to debt reduction. Synergies from Pactiv, Graham
and Dopaco (recently acquired) are expected to help bolster free
cash generation. The company has strong brands and market
positions and there are some switching costs for customers in
certain segments. Many of RGHL's businesses had a history of
strong execution and innovation prior to their acquisition. Scale,
as measured by revenue, is significant for the industry and helps
RGHL lower its raw material costs. RGHL is also expected to have
adequate pro-forma liquidity including adequate cushion under its
financial covenants following the credit facility amendment.

The negative rating outlook reflects the company's stretched
financial metrics, integration risk and limited room for negative
operating or integration variance.

The ratings could be downgraded if the company fails to improve
credit metrics on a sustainable basis, undertakes further
significant acquisitions and/or continues its aggressive financial
policies. The ratings could also be downgraded if there is a
deterioration in the operating and competitive environment and/or
the company fails to maintain adequate liquidity including ample
cushion under financial covenants. Specifically, the ratings could
be downgraded if debt to EBITDA remained above 6 times, EBIT to
interest expense declined below 1.5 times, free cash flow to debt
declined below the low single digits, and/or the EBIT margin
decreased to below the high single digits.

The rating could be stabilized if the company sustainably improves
its credit metrics within the context of a stable operating and
competitive environment, maintains adequate liquidity including
ample cushion under financial covenants and pursues less
aggressive financial policies. Specifically, RGHL would need to
improve debt to EBITDA to below 6 times, EBIT to interest expense
to at least 1.5 times and free cash flow to debt to the mid single
digits while maintaining the EBIT margin in the high single
digits.

The principal methodology used in rating Reynolds Group Holdings
Limited and Graham Packaging Company L.P. was the Global Packaging
Manufacturers: Metal, Glass, and Plastic Containers Industry
Methodology, published June 2009. Other methodologies used include
Loss Given Default for Speculative Grade Issuers in the US,
Canada, and EMEA, published June 2009.


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


SEAARLAND SHIPPING: Files for Chap. 11 to Beat U.K. Ship Seizures
-----------------------------------------------------------------
Seaarland Shipping Management B.V., a vessel manager, filed for
Chapter 11 protection on July 29 in New York (Bankr. S.D.N.Y.
Case No. 11-13634), along with affiliates that own six tankers and
bulk carriers.

Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that the Amsterdam-based company explained in court
filings how Credit Agricole Corporate & Investment Bank, as agent
to the Company's lenders, seized one ship on July 21 and was on
the cusp of seizing two more on July 29.  The arrest of the vessel
was authorized by the U.K. Admiralty Court.

According to the report, Seaarland filed under Chapter 11 on an
emergency basis after Credit Agricole attached a bank account with
almost US$1.8 million on July 29. The Chapter 11 filing precluded
the seizure of the two other vessels.

Mr. Rochelle notes that according to court filings, Credit
Agricole is owed US$89.7 million.  It has mortgages on the three
vessels it seized or was in the process of seizing.  Royal Bank of
Scotland is agent for lenders with mortgages on three other
vessels to secure a US$117.7 million debt.

Mr. Rochelle discloses that Seaarland doesn't have financing for
the Chapter 11 case.  It filed papers asking the bankruptcy court
to authorize use of the cash Credit Agricole seized.

The petition said assets and debt are both more than US$100
million and less than US$500 million.

             US$1.2 Million for Fuel & Other Expenses

Samuel Howard at Bankruptcy Law360 reports that Marco Polo
Seatrade BV on Monday tried to free up US$1.2 million for fuel,
wages and other pressing expenses days after filing for Chapter 11
in New York to prevent lenders from seizing its tankers.

Marco Polo said the funds were needed to continue operating
profitably after the vessel management company and three
affiliates rushed into Chapter 11 for protection from lenders that
turned against an out-of-court restructuring process, according to
Law360.

                       Global Vessel Market

The affiliates that filed for bankruptcy are Marco Polo Seatrade
B.V., Cargoship Maritime B.V., and Magellano Marine C.V.  Marco
Polo is the sole owner of Seaarland, which in turn is the sole
owner of Cargoship, and also holds a 5% stake in Magellano.  The
remaining 95% stake in Magellano is owned by Amsterdam-based Poule
B.V., while another Amsterdam company, Falm International Holding
B.V. is the sole owner of Marco Polo.  Falm and Poule didn't file
bankruptcy petitions.

Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review,
reports that the companies trace their financial woes back to late
2008, when the global vessel market "fell into disarray."  Marco
Polo said in court papers it wasn't able to perform under the
guarantees issued for the performance of its chartering companies,
Cargoship and Magellano, and eventually sought to launch a debt
restructuring with the help of their senior lenders.  After a year
and a half of restructuring talks and cost-cutting, Marco Polo
said it believed it was close to completing its goals and to
securing new financing from Credit Agricole.  DBR relates the
lender proposed a US$4 million financing package last month, but
Marco Polo countered that it would need US$10 million.  Rather
than counter with a new financing offer, Credit Agricole launched
a foreclosure proceeding against one of the three vessels securing
its claims.

According to DBR, Marco Polo fears the seized vessel could be sold
"in an inefficient judicial foreclosure proceeding in the U.K.,
which will fail to maximize the value of the vessel for the
benefit of all creditors."


SEAARLAND SHIPPING: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Seaarland Shipping Management B.V.
        Delflandlaan 1
        12HG Floor B
        Amsterdam 1062EA
        The Netherlands

Bankruptcy Case No.: 11-13635

Chapter 11 Petition Date: July 29, 2011

Court: U.S. Bankruptcy Court
       Southern District of New York (Manhattan)

Judge: James M. Peck

Debtor's Counsel: Andrew Schoulder, Esq.
                  BRACEWELL & GIULIANI LLP
                  1251 Avenue of the Americas, 48th Floor
                  New York, NY 10020-1104
                  Tel: (212) 508-6132
                  Fax: (212) 508-6101
                  E-mail: andrew.schoulder@bgllp.com

Estimated Assets: US$100,000,001 to US$500,000,000

Estimated Debts: US$100,000,001 to US$500,000,000

The Company did not file a list of creditors together with its
petition.

The petition was signed by Barry Michael Cerneus, authorized
signatory.

Affiliates that simultaneously sought Chapter 11 protection:

        Debtor                              Case No.
        ------                              --------
Magellano Marine C.V.                       11-13628
Cargoship Maritime B.V.                     11-13630
Marco Polo Seatrade B.V.                    11-13634


* NETHERLANDS: Bankruptcy Filings Down 7% in First Half 2011
------------------------------------------------------------
SeeNews reports that Statistics Netherlands (CBS) on Wednesday
said the bankruptcy filings in the Netherlands decreased by 7%
year-on-year in the first half of 2011.

According to SeeNews, the number of insolvencies, excluding one-
man businesses, came in at some 3,000 in the first six months of
2011.

Bankruptcies declined in almost all industries, SeeNews discloses.
An exception was the hotel, restaurant and catering sector where
an annualized increase of 42% was registered, with mainly small
restaurants and cafeterias having fewer than 10 employees going
bust, SeeNews states.

The biggest decline was reported for the transport industry,
SeeNews notes.


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


* ROMANIA: Some State-Owned Companies May Collapse, President Says
------------------------------------------------------------------
FOCUS News Agency, citing Romanian Mediafax news agency, reports
that Romanian President Traian Basescu said Tuesday on public
radio that he does not rule out the possibility of several state-
owned companies to go bankrupt, adding the government does not
have to always step in and save those companies.

Mr. Basescu declined to give any examples and saying a list of
such companies has not been made yet, FOCUS News notes.

"A list hasn't been made but the government, unable to pay off the
debts of all these companies, will have to allow creditors to
cover what they are due from these companies," FOCUS News quotes
the president as saying.


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


AKIBANK: Moody's Affirms 'E+' BFSR; Outlook Stable
--------------------------------------------------
Moody's Investors Service has affirmed these ratings of Akibank:
the standalone E+ bank financial strength rating (BFSR), which
maps to B3 on the long term scale; the B3 long-term foreign and
local currency deposit ratings, and the Not Prime short-term
foreign and local currency bank deposit ratings.

Moody's affirmation of Akibank's ratings is based on the bank's
audited financial statements for 2010 prepared under IFRS, and its
H1 2011 unaudited results prepared under the local GAAP.

Ratings Rationale

"Moody's affirmation of Akibank's ratings, with a stable outlook,
reflects the bank's modest performance during the recent global
financial crisis, with evidence of the bank's asset quality
deteriorating to around the average for the Russian banking
system," says Maxim Bogdashkin, a Moody's Assistant Vice-President
and lead analyst for the bank. Akibank's total non-performing
loans -- including loans overdue for more than 90 days and loans
repaid via collateral foreclosure -- peaked at around 18% of total
loans as at YE2010; the bank's net interest margin narrowed to
4.6% in 2010 from average of 7.5% for the three-year period 2007-
2009. The bank remained profitable over these years, although its
net income remains low due to continuing loan loss charges.

Moody's notes that Akibank's ratings are constrained by its high
risk concentrations, with the exposure to 20 largest borrowers
exceeding 2.5x total capital, and with high dependence on a single
group of depositors accounting for around a third of total
liabilities as at H1 2011. The bank's business continues to be
dominated by personal relationships of its major private
shareholder, thus rendering it highly exposed to key-person risk.
The level of related-party transactions, albeit comparable with
some other Russian banks, is high with total exposure accounting
for around Tier 1 capital as of YE2010.

At the same time, Moody's notes that Akibank maintains a
relatively developed branch network in the Republic of Tatarstan
and its image is additionally supported by a reputable portfolio
shareholder, East Capital, a private equity fund that holds a
19.99% stake in the bank. The bank's capital buffer, which was
supported by capital increases in 2008 and 2009, and the bank's
loan loss reserves confer relatively good protection from loan
losses that could materialise in the medium term.

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. Please see the Credit Policy page on www.moodys.com for a
copy of these methodologies.

Headquartered in Naberezhny Chelny, Republic of Tatarstan, Russia,
Akibank reported total assets of RUB23.8 billion (US$780 million)
under audited IFRS as of YE2010, up 20% compared to 2009. The
bank's net profit totalled RUB91 million (US$3 million) in 2010, a
14% increase from the prior year.


AMT BANK: Moody's Cuts National Scale Rating to 'C.ru'
------------------------------------------------------
Moody's Interfax Rating Agency has downgraded AMT Bank's national-
scale rating (NSR) to C.ru from B3.ru. Moody's will also withdraw
the NSR for its own business reasons.

Ratings Rationale

Moody's explained that these rating actions were triggered by the
withdrawal of AMT Bank's banking license by the Central Bank of
Russia (CBR) on July 21, 2011, "due to breaching the federal laws
on banking activity, CBR's regulatory requirements and
misrepresentation of financial reporting figures" (quoted from
www.cbr.ru).

The downgrade of the NSR to C.ru reflects Moody's expectation that
following the withdrawal of the banking license, AMT Bank
depositors may incur a loss of more than 50%, with the exception
of private individuals with deposits at the bank up to RUB700,000
(which are eligible for 100% repayment by the State Corporation
Deposit Insurance Agency). Moody's expectation of very low
recovery for creditors is based on the historical data for similar
cases in Russia in which banks' licenses have been withdrawn.

Moody's will withdraw the rating for its own business reasons.
Please refer to the Moody's Investors Service's Policy for
Withdrawal of Credit Ratings available on its Web site,
www.moodys.com.

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, AMT Bank reported -- in
accordance with the unaudited Russian Accounting Standards (RAS)
-- total assets of US$1.5 billion as at year-end 2010 and net loss
of US$34.7 million for the year.

National Scale Ratings

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).


AMT BANK: Moody's Downgrades Long-Term Deposit Ratings to 'C'
-------------------------------------------------------------
Moody's Investors Service has downgraded AMT Bank's long-term
local and foreign-currency deposit ratings and the bank's foreign
currency debt rating to C from Caa2 and affirmed AMT Bank's Not
Prime short-term deposit ratings, while AMT Bank's bank financial
strength rating (BFSR) remained unchanged at the lowest possible
level of E. Moody's will also withdraw all AMT Bank's ratings for
its own business reasons.

Ratings Rationale

Moody's explained that these rating actions were triggered by the
withdrawal of AMT Bank's banking license by the Central Bank of
Russia (CBR) on July 21, 2011, "due to breaching the federal laws
on banking activity, CBR's regulatory requirements and
misrepresentation of financial reporting figures" (quoted from
www.cbr.ru).

The downgrade of AMT Bank's deposit ratings to C therefore
reflects Moody's expectation that, following the withdrawal of the
banking license, AMT Bank depositors may incur a loss of more than
50%, with the exception of private individuals with deposits at
the bank up to RUB700,000 (which are eligible for 100% repayment
by the State Corporation Deposit Insurance Agency). The rating
agency's expectation of very low recovery for creditors is based
on the historical data for similar cases in Russia in which banks'
licenses have been withdrawn.

Moody's further said that as of the moment of its license
withdrawal by the CBR, AMT Bank had an outstanding Eurobond issue
for the unsettled amount of approximately USD17 million (Moody's
estimate based on the bank's publicly available statutory
reporting). The rating agency believes that the recovery of this
indebtedness for the bondholders will also be significantly less
than 50%. Therefore, Moody's has downgraded the bank's senior
unsecured foreign currency debt ratings to C, which is in line
with the bank's deposit ratings and represents the lowest possible
rating level.

Moody's will withdraw all of AMT Bank's ratings for its own
business reasons. Please refer to Moody's Investors Service's
Withdrawal Policy, which can be found on Moody's website,
www.moodys.com.

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, AMT Bank reported -- in
accordance with the unaudited Russian Accounting Standards (RAS)
-- total assets of US$1.5 billion as at year-end 2010 and net loss
of US$34.7 million for the year.


POLYMETAL OJSC: Fitch Affirms IDRs at 'B'; Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Russia-based gold and silver producer
OJSC Polymetal's Long-term foreign and local currency Issuer
Default Ratings (IDRs) at 'B' and its Short-term foreign and local
currency IDRs at 'B' respectively. Fitch has also affirmed the
company's National Long-term rating at 'BBB(rus)'. The Outlook for
all the Long-term ratings is Stable.

The rating Affirmation and Stable Outlook reflect the positive
progress the company has made in diversifying its reserve base
whilst maintaining a good average mine life at existing operations
of around 13 years. Polymetal's ratings also continue to reflect
its competitive cost position (US$571/oz in 2010) which is
comparable with the world average of around US$560/oz. Whilst cash
costs increased by a comparatively high 19% in 2010, Fitch notes
that this was in line with the global trend which increased by 17%
in 2010. Polymetal expects to launch production at its new
hydrometallurgical plant in Amursk during Q4 2011. A successful
commissioning of this plant will further strengthen the company's
operating profile, as it will allow the bulk processing of
refractory ores from Albazino, Mayskoye and other gold deposits
located in Russian Far East with acceptable recovery rates.

Key constraints on the ratings include the high volatility of gold
and (especially) silver prices, the high correlation between
prices of the two commodities, and the sensitivity of company's
future financial results and credit metrics to price changes.
Operating activity in the Russian Far East, a region with poor
infrastructure and severe climate conditions, bears additional
risks and may lead to an underestimation of required capex and
schedule setbacks relative to the stated development budgets and
timelines. Factors like gold and silver yield grades, exchange
rate fluctuations and cost inflation are outside the company's
control.

Polymetal's liquidity position is adequate. At end-2010 the
company had US$86 million and US$151 million available for draw-
down under existing short-term and long-term loan facilities
respectively as well as US$11 million of cash on hand compared
with US$90.6 million of loans to be repaid in 2011. Fitch expects
the company to be free cash flow neutral in 2011 and also
considers that it should be able to refinance maturing loans with
new facilities should it choose to do so. Fitch expects the
company to remain free cash flow negative in 2012-2013, assuming a
moderation in current record gold and silver prices.

For FY2011 Fitch estimates a 40% increase in revenues to around
US$1,270 million with an EBITDAR margin of approximately 46%
compared with 44% in FY2010, driven mostly by increase of prices.
Funds from operations (FFO) gross leverage is projected at around
1.7x as at end-2011, and anticipated to increase to 2.4x-2.5x by
end-2012.

Positive rating action could occur if there was an increase in the
scale of the company resulting from the successful completion of
existing development projects; or a reduction of FFO gross
leverage to below 1.5x across the cycle coupled with the
expectation of sustainable positive free cash flow. Conversely,
negative rating pressure could result if weaker operational
performance or other factors resulted in a consolidated EBITDAR
margin below 25% and/or FFO gross leverage of over 3.0x.

Polymetal, with output of 8.2m oz of silver in H1 2011, is in the
top five primary silver producers in the world. The company is
also one of the leading Russian gold producers with output of
0.184m oz in H1 2011. Polymetal's asset portfolio contains more
than 50 licenses for deposits, located in Russia and Kazakhstan.


VTB INSURANCE: Fitch Upgrades IFS Rating to 'BBB-' From 'BB'
------------------------------------------------------------
Fitch Ratings has upgraded VTB Insurance Limited's (VTBI) Insurer
Financial Strength (IFS) Rating to 'BBB-' from 'BB' and National
IFS Rating to 'AA+(rus)' from 'AA-(rus)'. The Outlook is Stable.
The upgrade reflects Fitch's view of the increased strategic
importance of VTBI to its 100% parent Bank VTB ('BBB'/Stable).
Fitch has raised VTBI's status to 'Very Important' from
'Important' and concluded that a one-notch difference between the
parent and the subsidiary is appropriate, as per the agency's
group rating methodology.

Assignment of 'Very Important' status reflects improved levels of
synergy between the group's banking and insurance operations,
strengthening of VTBI's stand-alone financial profile and
crystallization of VTBI's medium-term strategic focus, which is
largely on bancassurance rather than on dynamic growth in the open
market.

The one notch difference between VTBI's and Bank VTB's ratings
reflects the insurer's relative small size in terms of assets and
profit contribution for the group, as well as good prospects for
greater synergies, particularly taking into account the
acquisitions recently made by Bank VTB in the Russian banking
sector.

VTBI has recorded a second consecutive year of strong operating
performance, with return on adjusted equity (ROAE) rising to 72%
in 2010 from 57% in 2009 with the underwriting result being the
key driver of strong results in both years. Fitch understands that
this is a result of Bank VTB's deliberate decision to allow the
insurer to write profitable business at low acquisition costs
through its bancassurance channel and thus retain profit at the
insurer's level. This profit can be repatriated to the parent
level in the form of dividends later, although Fitch has been
advised that Bank VTB does not plan to withdraw dividends, at
least in the near term. Meanwhile, VTBI has scheduled a share
capital increase through the retained profits to RUB1.5bn from
RUB0.5bn by end- 2011.

Bank VTB has recently acquired a significant minority stake and
operational control in Insurance Group MSK (IG MSK; 'BB'/RWN).
This transaction formed part of a larger deal when Bank VTB
acquired a 46.48% stake in the Bank of Moscow ('BBB-'/Stable) from
the City of Moscow at the end of February. IG MSK was of interest
to Bank VTB due to its cross-holding with Bank of Moscow. Bank VTB
expects to increase its participation in IG MSK to a majority one
in the near term.

IG MSK was three times larger than VTBI by premiums written in
2010, but significantly weaker in terms of underwriting
performance, primarily due to the higher exposure to the motor
business and execution risks related to the two mergers conducted
by IG MSK in Q110 and Q211. At present, Bank VTB is in the process
of scrutinizing IG MSK's insurance portfolio and balance sheet and
plans to announce its strategic decision on the insurer's
development in the next few months. Fitch understands that a
merger between VTBI and IG MSK is unlikely in the near to medium
term, at least until IG MSK restores profitability. Fitch believes
that VTBI retains a higher strategic importance among Bank VTB's
insurance holdings despite its smaller size due to the shared
brand name, achieved integration with the group banking operations
and strong stand-alone operating performance.

VTBI's ratings are likely to move in line with the parent's
ratings. However, the ratings linkage with the parent could change
if Fitch believes that VTBI no longer has 'Very Important' status
for Bank VTB, under the agency's group rating methodology. This
could happen, for example, if VTBI were to focus on aggressive
growth in the open market and failed to meet profitability targets
set by the parent.

VTBI's ratings could be fully aligned with the parent's ratings if
VTBI achieves materiality in size relative to the parent's gross
assets or net income, and/or achieves greater synergies with the
group's banking operations. Fitch believes this is unlikely to be
achieved in the near to medium term, but is a realistic
expectation in the longer term.

VTBI is a medium-sized Russian non-life insurer with gross
premiums written of RUB5.6bn in 2010 and gross assets of RUB4.5bn
at end-2010.


=============================
S L O V A K   R E P U B L I C
=============================


OTP BANKA: Moody's Cuts Long-term Bank Deposit Rating to 'Ba1'
--------------------------------------------------------------
Moody's Investors Service has downgraded OTP Banka Slovensko's
(OBS) long-term bank deposit rating to Ba1 from Baa3, the short-
term deposit rating to Not-Prime from Prime-3, and the standalone
Bank Financial Strength Rating (BFSR) to E+ (mapping to B1 on the
long-term scale) from D- (Ba3). The outlook on the long-term
ratings is negative.

The rating action reflects (i) OBS's weakening market share in the
Slovakian market; (ii) its ongoing challenges to return to a
satisfactory level of profitability and efficiency, despite an
improving operating environment; and (iii) its asset-quality
deterioration.

Ratings Rationale

Moody's notes that OBS, which is a subsidiary of Hungary's OTP
Bank NyRt (rated Baa3, negative outlook) has been facing
significant financial challenges since 2009 and, as a consequence,
it has been deleveraging in all its business segments, even at a
time when the operating environment in Slovakia has started to
offer growth opportunities. As a result, its market share has
weakened, reaching 2.8% for loans and 2.5% for deposits at the end
of 2010. Moody's says that it believes that OBS now occupies a
weaker position in the Slovakian market, especially in retail
lending, which is currently offering good growth prospects. In
addition, OBS faces growing competition in the retail sector from
larger banks with stronger credit profiles.

Moody's notes that OBS reported losses in 2009 and 2010, due to
sizeable loan losses and weaker income generation, which was
partially due to a decline in revenues from FX-related activities.
In addition, OBS's high cost-to-income ratio -- at 73% in 2010
versus a 55% average for the system -- also reflects
inefficiencies in the relatively large, but loss-making, branch
network. Whilst some financial improvements are expected for 2011,
the rating agency acknowledges that OBS's capacity to return to a
satisfactory level of profitability and efficiency will be highly
challenging for the foreseeable future.

OBS's asset quality worsened significantly during 2009, and gross
non-performing loans (NPLs) as a percentage of gross loans
deteriorated to 12.3% at the end of 2010, mainly due to OBS's
corporate portfolio. Moody's notes that during 2010, OBS sold
about EUR36.5 million of NPLs to the OTP group in Hungary. Moody's
expects asset quality for OBS to weaken further in 2011, albeit at
slower pace, reflecting some benefits of the improving economic
environment in Slovakia. The rating agency also noted the high
borrower concentration in OBS's loan book, which represents a
significant credit risk.

Moody's believes that OBS's Tier 1 capital ratio of 8.4% at the
end of 2010 represents a modest cushion relative to the challenges
and risks faced by OBS.

OBS's E+ BFSR maps to B1 on the long-term rating scale. Moody's
said that the negative outlook on the long-term ratings reflects
the possibility that the challenges faced by OBS in the current
market environment -- and its difficulty to attain a satisfactory
profitability level -- could lead to OBS becoming more weakly
positioned in the E+ BFSR category, resulting in a lowering of
OBS's standalone rating of B1. In addition, the negative outlook
also reflects the negative outlook on the parent's ratings.

OBS currently benefits from a three-notch uplift from its
standalone rating of B1 due to a combination of a high expectation
of parental and a moderate expectation of systemic support. The
rating agency notes that if support from the parent declines in
the future -- as a result of changes to the parent bank's
strategic priorities and cost-benefit rationale -- this would
negatively affect OBS's deposit ratings.

OBS's ratings could be downgraded if it fails to (i) establish a
more sustainable business model, with growth opportunities in the
retail segment; and (ii) return to a satisfactory level of
profitability and efficiency. OBS's ratings could be also lowered
if the parent were to be downgraded. An upgrade of OBS's ratings
is unlikely at present given the current negative outlook on the
ratings.

Methodologies Used

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. Please see the Credit Policy page on www.moodys.com for a
copy of these methodologies.

Headquartered in Bratislava, Slovakia, OBS reported total assets
of EUR1.25 billion as of December 31, 2010.


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


BANCO DE VALENCIA: Fitch Downgrades Long-Term IDR to 'BB-'
----------------------------------------------------------
Fitch Ratings has downgraded Banco de Valencia's (BValencia) Long-
term Issuer Default Rating (IDR) to 'BB-' from 'BBB-', its Short-
term IDR to 'B' from 'F3', its Viability Rating (VR) to 'bb-' from
'bbb-' and its Individual Rating to 'D' from 'C/D'. The agency has
simultaneously affirmed its Support Rating at '3' and Support
Rating Floor at 'BB-'. The Outlook on the Long-term IDR is Stable.

The rating actions reflects BValencia's high risk concentration to
the Spanish real estate sector, and tight liquidity and capital
levels, particularly in the context of Spain's weak economic
environment and difficult access to wholesale markets. Further
asset quality deterioration is expected and will require high
impairment and other charges which will continue to weigh down the
bank's operating profitability and place pressure on capital. In
addition, BValencia faces large funding maturities, particularly
in 2012. Conversely, the bank has a healthy regional retail
franchise which provides it with a relatively stable customer
deposit base and it has a strong cost efficiency ratio, partly
helped by sharing systems with its main shareholder, Banco
Financiero y de Ahorros (BFA; 'A-'/Stable; VR of 'bb-').

Downward pressure on BValencia's VR would arise if the bank fails
to deleverage significantly and improve its funding profile and
capital ratios, as well as if impaired loans and foreclosed assets
continue to rise.

In 2010 and Q111, BValencia's profitability remained under
pressure from high funding costs. In 2010, large capital gains
from the sale of equity stakes and buybacks of debt were used to
build up provisions, although loan impairment charges continued to
absorb a large part of pre-impairment operating profit. For the
remainder of 2011 and in 2012, pressure on profitability will
continue although margin pressure will be alleviated by repricing
loans at higher interest rates and recoveries of loans charged-off
will help control impairment charges. Furthermore, capital gains
from the sale of some equity stakes are expected.

BValencia's large exposure to real estate and construction risks
(34% of total lending at end-Q111) has resulted in a significant
deterioration of asset quality since 2009. The impaired/total
loans ratio was 6.6% at end-Q111 and the bank has recently
intensified its charge-off policy and the foreclosure of real
estate assets. Including impaired lending, asset foreclosures and
charge-offs, the extended impaired to total loans ratio would have
been a high 13%. Impaired loans are 42% covered by reserves and
foreclosed assets 26% covered, which would help to reduce loss
severity.

BValencia's funding is equally derived from customer deposits and
wholesale funds (41% each) although liquidity remains tight
considering the large maturities the bank faces over the next two
years (EUR0.5 billion for the remaining part of 2011 and EUR1.9bn
for 2012). However, an important deleveraging plan is in place,
unencumbered assets of EUR300 million exist and a further capacity
to issue and retain EUR775 million of covered bonds could help the
bank to meet its funding needs.

With a Fitch core capital/weighted risks ratio of 7.6%, the bank's
capital levels are relatively low.. In light of risk concentration
to the real estate sector and Spain's weak economic prospects, in
Fitch's view, BValencia may need to raise capital levels further.

BValencia is a regional bank mainly operating in Valencia and
Murcia with 431 branches at end-Q111. BValencia is part of BFA,
the third largest banking group in Spain. BFA holds 38.4% stake in
BValencia.

The rating actions are:

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

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

   -- Viability Rating: Downgraded to 'bb-' from 'bbb-'

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

   -- Support Rating: Affirmed at '3'

   -- Support Rating Floor: Affirmed at 'BB-'

   -- Senior Unsecured Debt: downgraded to 'BB-' from 'BBB-'

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

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


MADRID RMBS: Fitch Affirms Ratings on Class E Notes at 'CCsf'
-------------------------------------------------------------
Fitch Ratings has downgraded eight and affirmed nine tranches of
the Madrid RMBS series, three Spanish RMBS transactions which
contain loans originated by Bankia ('A-'/Stable/'F2', formerly
Caja de Ahorros y Monte de Piedad de Madrid). The Outlooks on five
tranches remain Negative, while five tranches' Outlooks have been
revised to Stable from Negative.

The three pools comprise loans originated during a booming
mortgage market (end of 2005 and throughout 2006), with original
loan-to-value (LTV) ratios exceeding 90%. Based on the information
available and the official house price index provided by the
Ministry of Housing of Spain, Fitch has re-calculated the property
values of the outstanding borrowers in the pool. As a result,
Fitch believes that all three transactions have high portions of
loans with indexed current LTV ratios exceeding 100%, which in the
agency's view, have a higher probability of default, and are
likely to result in lower recoveries, especially with an expected
peak-to-trough house price decline of 30%. Across the three
transactions, such loans ranged between 37% and 41% of the current
portfolios. In Fitch's view, the current levels of credit support
available to the class A and B notes in all transactions, is not
sufficient to withstand the default and recovery stresses in their
current rating scenarios, which is why the ratings on these notes
were downgraded.

Fitch recognizes that the performance of the three deals has
improved, as is reflected in the significant decline in arrears
and default levels compared to levels seen in early 2009. Arrears
dropped from their peak levels of approximately 7% of the current
pool in February 2009 collection period, to a maximum of 1% as of
end of May 2011. Meanwhile cumulative net defaults, as a ratio of
the current asset balance for the same period dropped from an
average of 13% to around 10%. Fitch believes that the improvement
in performance can be attributed to the improved borrower
affordability in the current low interest rate environment and the
roll-through to default of loans in higher arrears buckets during
2008 and 2009. Fitch-calculated average the roll-through rate of
loans in arrears by more than four months to default (defined as
six month+ arrears) ranged between 70% and 85% in the period
leading up to end of 2009. The conservative provisioning
mechanism, whereby loans in arrears by more than six months are
provisioned for 100% using gross excess spread, led to a
tightening in available revenue and the depletion of the reserve
funds in all three transactions. As of the May 2011 interest
payment date (IPD) Madrid RMBS III's reserve fund remains fully
utilized.

Fitch believes that the improved performance of loans in arrears
was also driven by originator support. Fitch understands that
refinancing opportunities have been offered to distressed
borrowers (both those recognized as defaulted and those that were
less than six months in arrears) during the same timeline, which
also explains the decline in arrears levels from their peak in
February 2009.

Despite the deteriorating housing market in Spain and the
underlying loans' high LTVs, the issuers have reported a high
volume of recoveries, which are most likely linked to the
refinancing opportunities provided by the originator. Recoveries
have ranged from between 61% of the cumulative gross default
amounts for Madrid RMBS III to nearly 70% for Madrid RMBS I and
II. In Fitch's view, the tightened liquidity market in Spain may
allow only limited, if any, refinancing opportunities for the
underlying borrowers. The deals will instead have to rely more
heavily on timely borrower payments and recoveries from defaulted
loans, which may take three years to materialize.

Recoveries reported to date have enabled the issuers to clear
outstanding principal deficiency ledgers, and, in the case of
Madrid I and II, partially replenish their reserve funds. As of
the May 2011 IPD the reserve funds of Madrid I and II stood at 37%
and 33% of their target amounts, EUR71 million and EUR62.4
million, respectively. As a result, the two deals' class C notes'
credit enhancement levels has improved, compared to levels seen 12
months ago, which has led Fitch to affirm these notes' ratings.

As of May 2011, cumulative gross defaults, against the original
pool balances, were calculated as 13.8% for Madrid RMBS I, 15.5%
for Madrid RMBS II and 15.9% for Madrid RMBS III. Although all
three transactions have seen a deferral in the priority-of-
payments ranking of mezzanine and junior note interest payments,
the high period defaults compared to gross excess spread has meant
that the noteholders of class C, D and E notes of Madrid III have
not received any interest payments since the May 2010 IPD for
class C and November 2009 IPD for class D and E notes. As of the
February 2011 payment date, the cumulative deferred interest on
these notes amounted to EUR6.6m. The transaction generated
sufficient revenue to repay 100% of the unpaid interest on the
class C notes in the May 2011 IPD, leaving EUR5.9 million
outstanding for the class D and E notes. In the near term, the
agency does not expect the remaining interest on the class D and E
notes, as well as the reserve fund, to start replenishing.

Since the January 2011 collection period arrear rates have trended
upwards again. As nearly 100% of the loans in the underlying pools
are linked to floating rates, Fitch believes that their
performance remains susceptible to interest rate movements. The
upward trend in arrears, combined with the high roll through to
default ratios seen in the past and the conservative provisioning
definition, would result in further pressure on the transactions'
ability to generate sufficient revenue. These factors have led
Fitch to maintain Negative Outlooks on the class B to C notes of
all three transactions.

According to the latest loan-by-loan level data, approximately 67%
of the mortgages are increasing-installment loans, i.e. the
installment due increases during the lifetime of the loan. Fitch
believes that such loans have a higher probability of default,
especially in an increasing interest rate environment. In its
analysis, Fitch has applied additional default assumptions for
such loans.

As part of the restructuring of Spain's savings banks, as of
December 2010 Caja Madrid became part of the Banco Financiero y de
Ahorros Group and its Long- and Short-term Issuer Default Ratings
were downgraded to 'A-'/Stable/'F2' from 'A'/'F1', becoming
ineligible to perform the swap provider and the account bank roles
in the three Madrid RMBS transactions.

Fitch has been informed that the bank accounts and the paying
agent in the first two transactions of the series have been
transferred to Banco Santander ('AA'/Stable/'F1+') and to
Bankinter (ratings withdrawn) in Madrid RMBS III. The sweep of
collections in all three series has been modified to every two
days from weekly as it was at origination, while the swap
counterparty role has been transferred to Banco Bilbao Vizcaya
Argentaria (BBVA; 'AA-'/Stable/'F1+') in all three series.

As of July 20, 2011 Caja Madrid is part of the newly created bank
Bankia and its Long and Short-term ratings were withdrawn.

Fitch understands that Madrid RMBS III is in the process of
changing the account bank from Bankinter, following the downgrade
and withdrawal of the entity's ratings. As the issuer is still
within the cure period of 30 days, Fitch's rating actions are
based on the assumption that the new account bank is eligible
under the agency's criteria. Should this not be the case, Fitch
may take further rating actions as deemed necessary.

The rating actions are:

Madrid RMBS I

   -- Class A2 (ISIN ES0359091016): downgraded to 'Asf' from
      'AAsf'; Outlook Stable,

   -- Class B (ISIN ES0359091024): downgraded to 'BBBsf' from
      'A+sf'; Outlook Negative;'

   -- Class C (ISIN ES0359091032): affirmed at 'BB+sf'; Outlook
      Negative;

   -- Class D (ISIN ES0359091040): affirmed at 'CCCsf '; Recovery
      Rating of 'RR3'

   -- Class E (ISIN ES0359091057): affirmed at 'CCsf '; Recovery
      Rating revised of 'RR6'

Madrid RMBS II

   -- Class A2 (ISIN ES0359092014): downgraded to 'Asf' from
      'AA-sf '; Outlook Stable;

   -- Class A3 (ISIN ES0359092022): downgraded to 'Asf' from
      'AA-sf '; Outlook Stable;

   -- Class B (ISIN ES0359092030): downgraded to 'BBBsf ' from
      'A-sf '; Outlook Negative;

   -- Class C (ISIN ES0359092048): affirmed at 'BBsf '; Outlook
      Negative;

   -- Class D (ISIN ES0359092055): affirmed at 'CCCsf '; Recovery
      Rating of 'RR4'

   -- Class E (ISIN ES0359092063) affirmed at 'CCsf '; Recovery
      Rating of 'RR6'

Madrid RMBS III

   -- Class A2 (ISIN ES0359093012): downgraded to 'BBBsf ' from
      'A+sf '; Outlook Stable;

   -- Class A3 (ISIN ES0359093020): downgraded to 'BBBsf ' from
      'A+sf '; Outlook Stable;

   -- Class B (ISIN ES0359093038): downgraded to 'BBB-sf ' from
      'BBBsf '; Outlook Negative;

   -- Class C (ISIN ES0359093046): affirmed at 'Bsf '; Outlook
      Negative;

   -- Class D (ISIN ES0359093053): affirmed at 'CCCsf '; Recovery
      Rating of 'RR5'

   -- Class E (ISIN ES0 ES0359093061) affirmed at 'CCsf ';
      Recovery Rating of 'RR6'


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


SAAB AUTOMOBILE: Workers Union to Send Payment Requests This Week
-----------------------------------------------------------------
Global Insolvency, citing Down Jones Bankruptcy Review, reports
that the Swedish labor union, Unionen, which represents 1,000 of
Saab Automobile's 1,600 unpaid white-collar employees, said
Tuesday it will send its first payment requests this week, giving
the troubled car maker only a few days to find the money to pay
wages and avoid bankruptcy.

According to Global Insolvency, salaries were due to be paid
July 27 but when no money arrived, the union began gathering any
members' pay slips that hadn't been honored in preparation for
sending payment requests.

As reported by the Troubled Company Reporter-Europe on July 29,
2011, Dow Jones Newswires related that employees in Sweden are
entitled to payment from the state wage fund if their employer has
gone bankrupt, but they have to make payment requests to stake
their claims.  Dow Jones disclosed that Swedish Automobile NV, the
Netherlands-listed owner of troubled car maker Saab Automobile, on
July 26 said it had delayed salary payments to its white-collar
employees due to a shortage of cash.

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


STENA AB: Moody's Affirms 'Ba2' Ratings; Outlook Negative
---------------------------------------------------------
Moody's Investors Service has affirmed Stena AB's ratings and
changed to negative from stable the outlook on its ratings. The
company's affirmed ratings are (i) a Ba2 corporate family rating
(CFR); (ii) a Ba2 probability of default rating (PDR); and (iii) a
Ba3 senior unsecured rating.

Ratings Rationale

The change of outlook was prompted by Moody's concerns that, by
the end of 2011, Stena will not be able to achieve credit metrics
that are adequate for the current rating category.

"The improvement in metrics that we had previously factored into
Moody's Ba2 rating of Stena could be impeded by the leveraging
effect of the group's acquisition of three liquefied natural gas
(LNG) vessels at the end of the first half of 2011, combined with
weaker-than-anticipated performances at the end of the first
quarter of the year," says Marco Vetulli, a Moody's Vice President
-- Senior Credit Officer and lead analyst for Stena.

"Should the group's metrics not improve as we have anticipated,
downward pressure would increase, hence the negative outlook,"
concludes Mr. Vetulli.

The outlook could be stabilized if Stena were able to achieve,
during the current financial year and thereafter on a sustainable
basis (i) EBIT interest coverage approaching 2.0x and a total
debt/EBITDA ratio trending towards 5.5x at the consolidated level
(per March 2011: 5.6x, still excluding cash outflow for the
acquisition of the LNG vessels); and (ii) a total debt/EBITDA
ratio trending towards 5.0x and a retained cash flow (RCF)/net
debt ratio approaching the mid-teens in percentage terms at the
restricted group level (5.7x and 13.1% per March 2011
respectively).

While not expected in the medium term, upward pressure on Stena's
ratings could develop following (i) a sustainable increase in
internal cash flow generation, with a retained cash flow (RCF)/net
debt ratio approaching the high teens in percentage terms for the
consolidated group; and (ii) a progressive deleveraging of the
group's balance sheet, with a total debt/EBITDA ratio of below
4.5x.

PREVIOUS RATING ACTION & PRINCIPAL METHODOLOGIES

The principal methodologies used in rating Stena were: (i) the
Global Shipping methodology, published December 2009; (ii) the
Global Rating Methodology for REITs and Other Commercial Property
Firms, published July 2010; (iii) the Global Oil Field Service
methodology, published December 2009; and (iv) Moody's Analytical
Considerations in Assessing Conglomerates, published September
2007.

Stena is one of the largest privately owned groups in Sweden (100%
owned by the Olsson family). At the end of the first quarter of
2011, the group had a consolidated turnover on a last-12-months
basis of approximately SEK27 billion (EUR2.9 billion, or US$4.1
billion). Stena is a holding company that controls its main five
business divisions: (i) Stena Line, the group's ferry operator;
(ii) Stena Drilling, the group's offshore drilling company; (iii)
Shipping (comprising Stena RoRo, Stena Bulk and Northern Marine);
(iv) Property, the group's real estate company; and (v) Stena
Adactum, the group's investment arm.


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


AFREN PLC: Fitch Affirms Long-Term Foreign Currency IDR at 'B'
--------------------------------------------------------------
Fitch Ratings has revised Afren plc's Outlook on its Long-term IDR
to Negative from Stable. The agency has also affirmed its Long-
term foreign currency Issuer Default Rating (IDR) at 'B' and
foreign currency senior unsecured rating at 'B' with a Recovery
Rating of 'RR4'.

The Negative Outlook reflects heightened execution risk already
embedded in Afren's operations in Nigeria and other African
countries. Afren posted lower than expected hydrocarbons
production in H111 with net output of 13 kboepd primarily due to
the delay in the commencement of production at the Ebok field and
longer than anticipated downtime at the field. In Fitch's view,
the acquisition of currently non-producing assets in Kurdistan
would exacerbate the execution risk. The stabilization of the
Outlook is pre-conditioned on the company's ability to deliver on
its production expansion program both in Nigeria ('BB-'/Negative)
and in Iraq.

The ratings affirmation follows Afren's announcement of the
acquisition of interests in two oil fields (Barda Rash and Ain
Sifni) in Iraq's Kurdistan region for a total consideration of
US$588.3 million. The company plans to pay US$388.3 million on
completion and the remaining US$200 million in 2012. The
acquisition will be partly debt funded and Afren raised about
US$184.5 million in equity placement.

In addition, although this acquisition will enable Afren to expand
its international footprint, Fitch does not view such geographic
diversification as reducing the company's exposure to political
risk inherent in its African operations. The operating environment
in Iraq is constrained, among other things, by a lack of a legal
framework for the development of the hydrocarbons sector in the
country as well as a coherent approach from Kurdistan's regional
government and the Central Iraqi government in this respect. The
federal Iraqi oil and gas law is expected to be approved in 2011-
2012 which should pave the way for the oil and gas industry's
development in the country.

Fitch expects some deterioration in Afren's credit metrics in
2011-2012 compared to Fitch's previous forecast. Although the
company's financial profile is still comparable to that of its
similarly-rated peers, Fitch notes that its financial headroom is
limited under its current rating level. Fitch anticipates funds-
from-operations (FFO) net adjusted leverage of 2.6x in 2011 and
2.4x in 2012 given the planned acquisition, lower production than
previously expected and based on Fitch's conservative oil price
deck of US$75/bbl in 2011 and US$65/bbl in 2012.

Fitch believes that this transaction is in line with the company's
strategy that aims at organic and acquisition-driven growth and
will provide Afren with exposure to the vast, yet largely
undeveloped and under-explored, reserves in Iraq. In addition, the
company could benefit from the expected low cost environment in
onshore operations in Kurdistan with operating costs estimated at
US$4-US$5/bbl.

Another positive aspect is the fields' location in proximity to
the major oil export route to Ceyhan in Turkey (e.g. Iraq-Turkey
pipeline). Afren plans to sell oil produced to the State Oil
Marketing Organisation (SOMO), a state-owned company, at market
prices.


CHARLES LE QUESNE: Goes Into Liquidation
----------------------------------------
The Jersey Evening Post reports that one of Jersey's oldest
building firms has gone into liquidation, just weeks after
starting a major States housing project.

Charles Le Quesne (1956) Ltd closed last Friday, shortly after
beginning a GBP4 million refurbishment of the Clos Gosset estate
in St Saviour, according to The Jersey Evening Post.

However, the report notes, the Housing department has moved to
reassure residents that an agreement has been signed to ensure
that the work, which includes improving drainage, recladding
houses and installing new windows and doors and a new heating
system, will go ahead as planned.

Located in Jersey, United Kingdom, Charles Le Quesne (1956) Ltd is
a construction company.


COLIN HUTTON: Goes Into Liquidation; 50 Jobs Lost
-------------------------------------------------
business7.co.uk reports that Colin Hutton Ltd has gone into
liquidation with the loss of 50 jobs.

The company was started in 1977 but has suffered a drop in sales
in recent years due to rising fuel prices and a reduction in road
haulage, business7.co.uk notes.

According to business7.co.uk, two staff have been retained to help
liquidators from Begbies Traynor sell the assets of the business.
However, Begbies has warned there is likely to be a large
shortfall in funds to pay debtors as much of the assets of Colin
Hutton were leased.

"Regretfully we were unable to try and trade this business to sell
as a going concern.  The debts were on such a scale, and the
ongoing trade levels were so low that it was simply not viable in
its current guise," business7.co.uk quotes Ken Pattullo, from
Begbies Traynor, as saying.

"The business had traded well for over 30 years, but the economic
downturn, and continued falling revenues from the commercial
vehicle sector led to the firm's failure."

Industrial auctioneer Sweeney Kincaid has been appointed to sell
Colin Hutton's vehicles, plant, machinery and tools, the report
adds.

Colin Hutton Ltd is a Glasgow-based haulage repair company.


COLNE PRECINCT: Owners Go Into Administration
---------------------------------------------
Lancashire Telegraph reports that the owners of Colne Precinct
have gone into administration.

Pendle Council confirmed the Market Street building, which houses
Tesco Express, Noble's Amusements, and Fulton Foods, has gone into
administration, according to Lancashire Telegraph.

"We've been made aware that Colne Precinct has gone into
administration.  The public space we have improved is managed by
Liberata and, although ownership will change, the agreement should
still stand," Lancashire Telegraph quoted an unnamed spokesman as
saying.

At the request of Colne Town Council, the situation will be
discussed at the next Colne Committee meeting, which takes place
on August 11, the report notes.


DRAGON FEEDS: In Liquidation; MP Seeks Probe on GBP1.03MM Funds
---------------------------------------------------------------
Carmarthen Journal reports that Dragon Feeds Ltd, the operator of
a controversial Laugharne ragworm farm, has gone into liquidation.
Swansea-based H R Harris & Partners was appointed as liquidators.

Carmarthen Journal notes that the Dragon Feeds site, on
Laugharne's marshes, was given the go-ahead by county planners in
February 2006.  Dragon Feeds had more than GBP1 million of public
cash pumped into it with the promise of up to 70 jobs, the report
relates.

According Carmarthen Journal, managing director Tony Smith
previously said he hoped to create 70 well-paid jobs for locals.
However, the actual number employed was just a fraction of that
with fewer than 10 full-time jobs created, it has been claimed.

"We're sorting out any claims from parties owed monies.  The main
asset would be the worm farm. We're still in negotiations at the
moment," Carmarthen Journal quotes Mark Evans, of H R Harris &
Partners, as saying.

"It is something we would want to sort out pretty quickly, we are
hoping to do it by next week. It's finding a buyer or attempting
to restore it back to farm land -- it is all down to the cost of
doing that."

Carmarthen Journal relates that MP Simon Hart said the Assembly
Government now has tough questions to answer about what happened
to the European money the project received.

"This is obviously a very sad day for all those who have lost jobs
at the Dragon Feeds ragworm farm but I have been investigating the
funding of this project for more than a year and I think some
urgent answers are now needed," Carmarthen Journal quotes Mr. Hart
as saying.

"We know that it was awarded Objective One funds of
GBP1.03 million for what was originally intended to be a ragworm
farm with 270 ponds employing 70 people.  However only 74 tanks,
less than a quarter of the proposed project was ever built, and I
understand that there was only ever a maximum of 10 people
employed there."

Mr. Hart has now written to First Minister Carwyn Jones asking him
to investigate this use of public money, the report adds.

Dragon Feeds Ltd operates a ragworm farm on Laugharne Marshes.


FS MOORE: DG3 Europe Acquires Firm Out of Administration
--------------------------------------------------------
Adam Hooker at PrintWeek News reports that DG3 has acquired FS
Moore out of administration on July 28, 2011.  FS Moore went into
administration on July 28, with insolvency practitioner BDO.

All 26 employees will move to DG3 under TUPE regulations in a deal
that should boost group turnover to GBP14 million in 2011,
according to PrintWeek News.

DG3 Europe Chairman Peter Furlonge said that the two companies had
a relationship for almost 30 years, so it was a personal move as
much as a business one, the report says.

FS Moore produces corporate communications, fine-art books and
bespoke creative products and boasts a large number of global
clients.


NORTHERN ROCK: Losses Down to GBP68.5 Mil. in 6-Mos. Ended June 30
------------------------------------------------------------------
BBC News reports that Northern Rock PLC has announced reduced
losses for the first six months of the year.

The bank reported a pre-tax loss of GBP68.5 million in the six
months to June 30, compared with a loss of GBP142.6 million the
previous year, BBC relates.

Northern Rock PLC was created last year after the lender was split
in two as a precursor to a sale, BBC recounts.

The deadline for bids ended last week, with Virgin and JC Flowers
reportedly interested, BBC notes.

The second part of Northern Rock -- Northern Rock Asset Management
-- holds the bank's more risky loans, some of which might not be
paid back, BBC states.  It is not due to be sold, BBC discloses.

Northern Rock PLC, as cited by BBC, said it expected to return to
profit in 2012 and hoped to return to private ownership shortly.

The bank, currently owned by UK Financial Investments, did not
announce a precise timetable for the sale process, BBC notes.

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.


TJ HUGHES: Sale of 53 Remaining Stores Hits Road Block
------------------------------------------------------
Wirral Globe reports that the administrators TJ Hughes are finding
it difficult to find buyers for the company's remaining 53 stores
that are listed as "going concern."

John Gorle, Union of Shop, Distributive and Allied Workers (USDAW)
National Officer said: ". . .  we remain increasingly concerned
about the future of the company's remaining 53 stores which the
administrators say are proving very difficult to find a buyer
for."

The report related that an unnamed TJ Hughes spokesman said:
"Joint administrators continue to seek a sale of the company's
remaining business and assets as a going concern, while trade is
on-going."

Wirral Globe relates that Lewis's Home Retail Limited move to
acquire four stores owned by the company will save around 440 jobs
throughout the United Kingdom.  Branches at Eastbourne, Glasgow,
Sheffield and the company's flagship in Liverpool have all been
included in the agreement, according to Wirral Globe.  The
company's Wirral store has been left out of the plans.

As reported in the Troubled Company Reporter on June 30, 2011,
Lancashire Evening Post said that TJ Hughes is set to become the
latest retailer to plunge into administration as the spending
slowdown grips the high street.  The report related that the
company is understood to have lined up accountants Ernst and
Young.  Click Liverpool reported that the brand, which recorded a
GBP10 million loss in the year to January 31, had been on the
brink of closure before the private equity firm staged the rescue
in March this year.  Click Liverpool related that further
investment of around GBP30 million would be needed to keep TJs
afloat but the money could not be found and administrators Ernst
and Young are on stand-by to find a buyer for its profitable
elements.

                       About T J Hughes

Based in Liverpool, United Kingdom, TJ Hughes operates discount
department stores, specializing in home and fashion, garden
furniture, fragrance, cosmetics, menswear, womens-wear, toys, and
electrical items.  TJ Hughes operates 57 department stores
throughout the United Kingdom.


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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Aug. 4-6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hotel Hershey, Hershey, Pa.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 14, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. __, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     Hilton San Diego Bayfront, San Diego, CA
        Contact: http://www.turnaround.org/

Dec. 1-3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 3-5, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        Grand Hyatt Atlanta, Atlanta, Ga.
           Contact: http://www.turnaround.org/

Apr. 19-22, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

November 1-3, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.
           Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.
           Contact: http://www.turnaround.org/

October 3-5, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.
           Contact: http://www.turnaround.org/


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *