TCREUR_Public/110810.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, August 10, 2011, Vol. 12, No. 157

                            Headlines



B E L A R U S

BELARUSIAN UNITARY: Fitch Cuts Financial Strength Rating to 'B-'


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

* BOSNIA & HERZEGOVINA: Bankruptcy Likely Amid Budget Deficits


F R A N C E

LAFARGE SA: Moody's Downgrades Senior Unsecured Ratings to 'Ba1'
PARIS PRIME: Fitch Affirms 'C' Ratings on Two Note Classes


G E R M A N Y

TALISMAN-6 FINANCE: S&P Affirms Rating on Class F Notes at 'D'
* GERMANY: Corporate Insolvencies Down 3% Year-on-Year in May 2011


G R E E C E

* GREECE: Belgian Banks to Discuss Rescue Package on Aug. 16


I R E L A N D

ALLIED IRISH: Proposes Buy-Out Scheme to Aid Struggling Homeowners
CBOM FINANCE: Fitch Rates Loan Participation Notes at 'B+'
KILLALOE HOTEL: Goes Into Receivership, RBS Appoints Receiver
O'CONNORS NENAGH: High Court Judge Refuses to Interfere in Sale
PAN EUROPE: Fitch Upgrades Rating on Class H Notes to 'Bsf'


I T A L Y

CIRENE FINANCE: S&P Affirms Rating on Class E Notes at 'BB'


K A Z A K H S T A N

ASTANA FINANCE: Fitch Maintains 'C' IDRs on Watch Negative


N E T H E R L A N D S

NEPTUNO CLO: Moody's Upgrades Rating on Class E Notes to 'B2 (sf)'
SMILE 2007: Fitch Downgrades Rating on Class E Notes to 'CCsf'


P O L A N D

ZLOMREX SA: Moody's Upgrades CFR to 'Caa2'; Outlook Stable


P O R T U G A L

LUSITANO SME: Fitch Lowers Rating on EUR29.8-Mil. Notes to 'CCCsf'


R U S S I A

BARCLAYS BANK: Moody's Downgrades Currency Deposit Ratings to 'B3'
CENTROCREDIT BANK: Fitch Affirms Long-Term IDR at 'B-'
CONTINENT AIRLINES: Meshchansky Court Releases CEO From Detention
GLOBEXBANK: Fitch Assigns 'BB' Ratings to Senior Unsecured Bonds
RUSSLAVBANK: Moody's Affirms 'E+' Bank Financial Strength Rating


S P A I N

AYT CAIXA: Fitch Affirms 'Csf' Ratings on Two Note Classes
AYT COLATERALES: Fitch Affirms 'Bsf' Rating on Class D Notes


S W E D E N

* SWEDEN: Corporate Failures Down 4% Year-on-Year in July 2011


U K R A I N E

CORPORATE INVESTMENT: Fitch Assigns 'B' LT Foreign Currency IDR
PRIVATBANK PJSC: Fitch Affirms LT Issuer Default Rating at 'B'


U N I T E D   K I N G D O M

CHOICES CARE: 'No Effect on Bute' Following Administration
COLT GROUP: Moody's Affirms 'Ba3' CFR; Outlook Changed to Stable
ESSENDEN PLC: Unveils Proposed Restructuring Plan
HOLIDAYS 4 UK: Bankruptcy Hits Turkish Hoteliers
IZODIA: Investors Seek to Recover GBP5.3 Million

* UK: Corporate Insolvencies Down in Second Quarter 2011
* UK: Forced Corporate Liquidations Rise Nearly 20% in 2nd Quarter


                            *********


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B E L A R U S
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BELARUSIAN UNITARY: Fitch Cuts Financial Strength Rating to 'B-'
----------------------------------------------------------------
Fitch Ratings has downgraded Belarusian Republican Unitary
Insurance Company's and Export-Import Insurance Company of the
Republic of Belarus's Insurer Financial Strength ratings to 'B-'
from 'B'.  The Outlooks are Negative.

The downgrades reflect Fitch's revised assessment of Belarusian
sovereign and country risks, in particular as a result of the
country's still weak external finances.  The downgrades also
reflect the severe challenges facing the local banking sector,
where state-owned Belgosstrakh and Eximgarant hold a significant
part of their investment assets.  The Negative Outlook reflects
the potential for continued deterioration in the sovereign's own
financial position, and therefore ability to support the state-
owned insurers.

Fitch believes that the foreign currency risk, which represents a
major challenge at the sovereign and banking system level, appears
to be more manageable for the insurers and considers that other
challenges facing the sovereign and banking strength may have a
greater influence on the local insurance sector.  These include
disruptions in economic activity, high inflation and probably more
selective government support of the corporate sector.  The ratings
are underpinned by the relatively stable standalone position of
Belgosstrakh and Eximgarant.  Both insurers are 100% owned by the
state and their obligations under compulsory and export insurance
lines are specifically guaranteed by the government.

Fitch is concerned about the concentration of the insurers'
investments assets in the local banking system, in which asset
quality and capital are likely to deteriorate, in the agency's
view, potentially sharply.  This is particularly relevant for
Belgosstrakh, which held 83% of its investment portfolio with the
banking sector at end-2010.  In particular, this included 54%
represented by an equity holding in Belagroprombank, a major local
state-controlled bank.  The agency is concerned that Belgosstrakh
may be asked for support by the bank, but notes that the insurer
did not participate in the bank's recent capital increase and
diluted its share to 12.99% at end-2010 from 16.76% at end-2009.
Eximgarant held 27% of its investment portfolio with bank deposits
and also had 62% of a single equity holding in a local major
leasing company at end-2010.

Regarding the impact of the macroeconomic factors, the agency is
concerned that the high inflation creates major challenges for the
pricing and reserving decisions to be made by insurance companies
for domestic risks and is likely to have a delayed effect on the
insurers' underwriting profit.  This is mitigated by the
predominantly short-tail nature of Belgosstrakh's and Eximgarant's
domestic risk portfolios.  Based on the experience in other
markets, Fitch would also anticipate an increase in domestic
claims activity during the local crisis period.

Fitch also notes that the economic downturn may reduce the demand
for voluntary insurance products, although these do not dominate
the portfolios of Belgosstrakh and Eximgarant.  The agency
anticipates the contraction of voluntary business to manifest
itself in the near to medium term and have a moderately negative
impact on the overall premium volume.  On the other hand, Fitch
understands that there is some potential for Eximgarant to seize
the opportunities created by the 56% devaluation of the local
currency in May 2011 for local exporters.

Fitch considers that foreign currency risk is manageable for the
insurers. As a purely domestic primary insurer, Belgosstrakh has
very low FX exposure with only 4% of assets and 2% of liabilities
held in foreign currencies at end-2010.  As an export credit
agency, Eximgarant is naturally more vulnerable to this risk,
although the existing insurer's diversification in non-credit
insurance lines has limited the FX exposure of its balance sheet
to 19% on the asset side, primarily in bank deposits, and 7% on
the liability side, primarily in technical reserves, at end-2010.
Nevertheless, the agency understands that Eximgarant has protected
itself from FX risk through the maintenance of currency matching
for its primary and outwards premiums, claims, and subrogation
under export insurance contracts.

Belgosstrakh was founded in 1921 and is Belarus's largest insurer
by premium volume with a 55% share of the local non-life insurance
sector in H111, BYR699 billion in gross written premiums and
BYR1,414bn in total assets.  Belgosstrakh has seven branches and
119 representative offices covering all Belarusian regional
centres, including Minsk.

Eximgarant was founded in 2001 in the framework of a government
program aimed at promoting national export operations.  Eximgarant
was the sixth-largest insurer in Belarus by premium volume at end-
2010, with BYR62 billion in gross written premiums and BYR513
billion in total assets.  Eximgarant is a member of the Prague
club of the International Union of Credit and Investment Insurers,
which includes the largest export credit and investments insurers
from developed and developing countries.


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


* BOSNIA & HERZEGOVINA: Bankruptcy Likely Amid Budget Deficits
---------------------------------------------------------------
BBC Monitor Euro, citing the text of a report by Bosnian Croat
Mostar-based daily Dnevni list, reports that Duljko Hasic, an
economic analyst in the Bosnia-Herzegovina Foreign-Trade Chamber,
has confirmed that because of budget deficits, a decline in direct
foreign investments, massive public spending, the failure to draw
on already approved credits, and the presence of large-scale
corruption and crime, Bosnia and Herzegovina has set off down a
one-way road towards certain and unavoidable bankruptcy in recent
years.

Mr. Hasic, as cited by BBC Monitor Euro, said that the politicians
in the country have been making a greater effort in recent years
to extinguish any kind of business activity in every manner
possible, and they have destroyed every aspect of the country's
development in that way.

Mr. Hasic emphasized that if the current trials and tribulations
involving the formation of a government continue, and, as a result
of that, the enormous budget deficits and indebtedness with
commercial banks do, too, it will very soon be possible to expect
total collapse and bankruptcy, BBC Monitor Euro notes.  He said
that the main reasons for a situation of this sort are political
instability and an adverse political climate, BBC Monitor Euro
relates.

"Everything is being refocused on public spending, which amounts
to 60% of the GDP.  The catastrophic deficits in the budgets are
certainly not going to be covered, so further indebtedness is
being sought, and with commercial banks under exceptionally
unfavorable terms.  Such a situation is unacceptable, and, in the
long term, it leads us down a one-way road to collapse," BBC
Monitor Euro quotes Mr. Hasic as saying.


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F R A N C E
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LAFARGE SA: Moody's Downgrades Senior Unsecured Ratings to 'Ba1'
----------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
long-term senior unsecured ratings of Lafarge S.A.
Simultaneously, Moody's assigned Lafarge S.A. a corporate family
rating (CFR) and probability of default rating (PDR) of Ba1.
Concurrently, Moody's downgraded the senior unsecured ratings of
Lafarge Cement UK plc and Lafarge North America, Inc to Ba1 from
Baa3. The outlook on all ratings is stable. This concludes Moody's
review for possible downgrade initiated on August 2, 2011.

Downgrades:

   Issuer: Lafarge Cement UK plc

   -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1
      from Baa3

   Issuer: Lafarge North America, Inc.

   -- Senior Unsecured Medium-Term Note Program, Downgraded to
      (P)Ba1 from (P)Baa3

   -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1
      from Baa3

   Issuer: Lafarge SA

   -- Multiple Seniority Medium-Term Note Program, Downgraded to
      (P)Ba1, (P)Ba2 from (P)Baa3, (P)Ba1

   -- Senior Unsecured Bank Credit Facility, Downgraded to Ba1
      from Baa3

   -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1
      from Baa3

   Issuer: Sugar Creek (City of) MO

   -- Senior Unsecured Revenue Bonds, Downgraded to Ba1 from Baa3

Assignments:

   Issuer: Lafarge Cement UK plc

   -- Senior Unsecured Regular Bond/Debenture, Assigned LGD3, 38%

   Issuer: Lafarge North America, Inc.

   -- Senior Unsecured Regular Bond/Debenture, Assigned LGD3, 38%

   Issuer: Lafarge SA

   --  Probability of Default Rating, Assigned Ba1

   --  Corporate Family Rating, Assigned Ba1

   -- Senior Unsecured Bank Credit Facility, Assigned LGD4, 63%

   -- Senior Unsecured Regular Bond/Debenture, Assigned LGD4, 63 %

   Issuer: Sugar Creek (City of) MO

   -- Senior Unsecured Revenue Bonds, Assigned LGD3, 38%

Outlook Actions:

   Issuer: Lafarge Cement UK plc

   -- Outlook, Changed To Stable From Rating Under Review

   Issuer: Lafarge North America, Inc.

   -- Outlook, Changed To Stable From Rating Under Review

   Issuer: Lafarge SA

   -- Outlook, Changed To Stable From Rating Under Review

Ratings Rationale

"The rating action reflects Lafarge's weak capital structure, with
credit metrics below our expectations for an investment grade
rating over an extended period of time," explains Stanislas
Duquesnoy, Moody's Vice President and lead analyst for Lafarge.
"While Lafarge's business profile and liquidity position remain
characteristic of an investment grade company, Moody's no longer
expects the company to be able to restore its credit metrics in
line with a Baa3 rating over the medium term, namely RCF/net debt
of 15% at fiscal year 2011 and 20% in the medium term and net
debt/EBITDA at or below 3.5x, given prevailing market conditions,"
continues Mr. Duquesnoy. On a last 12 months basis, in June 2011
RCF/net debt stood at 7.2% and net debt/EBITDA at 4.6x albeit the
numbers are negatively impacted by a seasonal peak in working
capital and do not yet include proceeds from asset disposals and
the reduction in dividends.

Moody's notes that the majority of the group's financial debt is
raised at holding company level. However, Lafarge's unsecured
notes are structurally subordinated to trade claims, pension
liabilities and financial debt (approximately 15% of total group
financial debt) that exist at its various operating subsidiaries.
Under Moody's loss given default methodology, this level of
subordination is borderline when considering a down notching of
the senior unsecured debt instruments raised at Lafarge. However,
Moody's gains comfort from the fact that Lafarge has in the past
raised debt at operating level mainly in countries where intra-
group lending was complex (or impossible) to put in place and has
limited structural subordination for senior unsecured bond
holders. Moody's also notes that Lafarge maintains large cash
balances in these countries.

Lafarge Cement UK and Lafarge North America are intermediate
holding companies. The GBP150 million unguaranteed senior
unsecured notes due November 2013 of Lafarge Cement UK, the US$200
million senior unsecured notes due July 2013 of Lafarge North
America, and the US$47 million industrial revenue bond of Sugar
Creek (City of) and guaranteed by Lafarge North America are
structurally preferred over debt at holding company level.
However, in Moody's view the structural subordination of senior
unsecured bond holders is not material enough to justify a
notching of these instruments above the CFR.

"Our outlook for the second half of the year is muted, with volume
growth expectations of 2% to 5% for the group's markets, while
cost inflation will continue unabated, with energy cost inflation
of 12% forecasted for second half 2011 and a 50 basis point (bps)
rise in overall cost inflation to 6%," adds Mr. Duquesnoy. While
Lafarge maintains its focus on implementing price increases,
Moody's does not expect Lafarge to be able to fully recoup the
cost of inflation in second half 2011 and sees further operating
weakness in second half 2011.

On a positive note, Lafarge delivered substantial cost saving
initiatives in first half 2011, striking EUR1,550 million in asset
disposals (10% of Moody's adjusted net debt as of 31 December
2010), which, alongside the 50% cut in dividends, Moody's expects
to lead to a modest improvement in credit metrics for full year
2011.

The rating could come under further pressure would Lafarge fail to
gradually improve credit metrics in 2011 and beyond. Failure to
decrease Debt / EBITDA below 5.0x and to increase RCF / net debt
above 10% would lead to negative pressure on the ratings.

Positive pressure on the ratings could evolve should Lafarge's
credit metrics recover more than expected over the next 12-18
months, exemplified by RCF/net debt in the high teens and net
debt/EBITDA moving towards 3.5x, on a sustained basis.

Lafarge has a solid liquidity position supported by high cash
balances (EUR1,960 million at 30 June 2011) and EUR3,473 million
availabilities under unconditional revolving credit facilities (no
financial covenants or MAC clauses). Lafarge's liquidity position
is also underpinned by cash proceeds, which Moody's expects to
flow from divestments realized during first half 2011 (EUR1.7
billion cash proceeds to be received in second half 2011). The
group's liquidity sources should be more than sufficient to cover
liquidity needs, mainly consisting of working capital consumption,
capex, dividends and debt repayments. Lafarge has a well spread
maturity profile, with an average maturity of four years and six
months.

Headquartered in Paris, France, Lafarge S.A. is one of the leading
building materials suppliers globally, and one of the three
largest cement producers worldwide with an installed annual
production capacity of 217 million tons at year-end 2010. The
company's major activities are organized into three divisions:
cement (60% of 2010 sales), aggregates and concrete (31%) and
gypsum (9%). Lafarge operates in 78 countries on five continents
and generated sales of EUR16.2 billion for the fiscal year ended
31 December 2010.

The principal methodology used in rating Lafarge SA was the Global
Building Materials Industry Methodology published in July 2009.


PARIS PRIME: Fitch Affirms 'C' Ratings on Two Note Classes
----------------------------------------------------------
Fitch Ratings has affirmed Paris Prime Commercial Real Estate
FCC's class D and E interest shortfall amounts at 'C'.

   * EUR0.0 million class D (FR0010382333) affirmed at 'C';
     Recovery Rating (RR) revised to RR6 from RR1

   * EUR0.0 million class E (FR0010382341) affirmed at 'C'; 'RR6'

The affirmation is based on the agency's opinion about the likely
recoveries of the outstanding interest shortfalls on the notes.
Following repayment of the loan in April 2011, the principal of
all remaining note classes repaid in full leaving interest
shortfalls of EUR1.1 million and EUR647,000 on the class D and E
notes, respectively.

After the bankruptcy of Lehman Brothers in September 2008 -- and
the related bankruptcy of the subsidiary that was acting as swap
counterparty -- the issuer-level fixed-to-floating interest rate
swap was terminated.  In October 2008, the issuer entered into new
hedging arrangements with Morgan Stanley on less favorable terms.
Consequently, there have since been partial interest shortfalls on
the class D notes and full interest shortfalls on the class E
notes.

The management company (Eurotitrisation) of the FCC have advised
there is a chance to partially or fully recover accrued interest
shortfall.  Although under the latest US plan creditors would
recover between 21 and 28 cents to the dollar, uncertainty over
recovery amounts and timing explain the lowest recovery rating
assigned to class D.


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G E R M A N Y
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TALISMAN-6 FINANCE: S&P Affirms Rating on Class F Notes at 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Talisman-6 Finance PLC's class A, B, C, D, and E notes. "At the
same time, we affirmed our rating on the class F notes," S&P said.

"The rating actions reflect our view of the increased likelihood
of principal losses associated with two of the three loans in
special servicing. They also reflect our view that borrowers in
Talisman-6 will continue to have difficulties in refinancing their
loans due to current real estate lending conditions, which
continue to be constrained. Our downgrade of the class E notes to
'CCC (sf)' from 'B (sf)' reflects our view that principal losses
to this class will likely occur in the near term," S&P related.

Loan Overview

Loan          Loan maturity    Securitized    % of pool
                               balance (EUR)
Orange        Sept. 30, 2011   392,773,374         38.0
Coconut       Jan. 15, 2012    147,187,362         14.2
Peach         July 15, 2012    142,185,435         13.8
Mango         Oct. 15, 2013     87,569,336          8.5
Strawberry    Jan. 15, 2012     79,361,813          7.7
Apple         Jan. 15, 2012     62,015,300          6.0
Cherry        Oct. 15, 2011     59,288,625          5.7
Pineapple     Oct. 15, 2013     49,034,427          4.7
Kiwi          Nov. 30, 2011     14,026,575          1.4
Total                        1,033,442,249        100.0

Loan          Status
Orange        In standstill.
              Loan extended to Sept. 30, 2011 from
              July 15, 2011 to allow time to negotiate
              further extension.
Coconut       Refinance risk in 2012.
              Currently in breach due to sale of land.
Peach         Loan was extended.
              Original maturity was July 2011.
Mango         In special servicing.
Strawberry    Loan was extended.
              Original maturity was January 2011.
Apple         Loan was extended.
              Original maturity was January 2011.
Cherry        In special servicing.
Pineapple     Refinance risk in 2013.
Kiwi          In special servicing.

                       Specially Serviced Loans

                    Cherry Loan (5.7% of The Pool)

The Cherry loan is the seventh-largest loan in the transaction,
with a current securitized balance of EUR59.3 million (5.7% of the
pool). At closing, the loan was secured by 41 properties in 11
locations in Eastern Germany and is currently secured by 37
properties. The servicer, Hatfield Philips International, LLC
(Hatfield Philips), transferred the loan to special servicing in
May 2008, due to payment default. The loan has been in special
servicing since then. The loan is also in breach of its interest
coverage ratio (ICR) and loan-to-value (LTV) ratio covenants.

The latest reported value of the properties as of September 2010
was EUR28.4 million (compared with EUR70.8 million at closing),
equivalent to a 208% LTV ratio. According to the valuation, most
of the assets are in average to below-average locations, and face
demographic challenges, including an ageing and declining
population, within their micro-markets. The properties are
currently 80.5% occupied, down from 89.0% at closing.

In May 2011, four of the properties (three residential properties
in Gross Schacksdorf and a multifamily house in Zehdenick) were
sold for EUR1.60 million, which is in line with the September 2010
valuation (EUR1.55 million) of these properties. The remaining
portfolio continues to be marketed for sale. Total unpaid interest
and amortization on the loan is EUR7.7 million. "In view of the
substantial decline in reported value, we expect significant
principal losses on this loan, which would negatively affect the
junior classes of notes," S&P said.

                    Mango Loan (8.5% of The Pool)

The Mango loan is the fourth-largest loan in the transaction, with
a current securitized balance of EUR87.6 million (8.5% of the
pool). Hatfield Philips transferred the loan into special
servicing in May 2011, due to a breach of the LTV ratio covenant.

The loan is secured by 12 commercial properties across Germany.
The reported value of the properties as of March 2010 was EUR70.5
million (compared with EUR111.4 million at closing), equivalent to
a 124% LTV ratio. Factors contributing to the decrease in the
value are that the current leases are at above market rates,
according to the valuer, and that its short weighted-average lease
length is 3.1 years, coming shortly after loan maturity in October
2013. In addition, the largest property in the portfolio is
exposed to an increased risk of vacancy. The property is located
in Dusseldorf and is primarily used as server (technical) space.
This property accounts for 40.3% of the total portfolio value.
According to the valuation, 30% of the leased space is not
occupied. "We anticipate principal losses on this loan," S&P said.

                    Kiwi Loan (1.4% of The Pool)

The smallest loan in the transaction is the Kiwi loan (EUR14.0
million, 1.4% of the pool). Hatfield Philips transferred the loan
into special servicing in July 2010, due to the nonpayment of full
amortization and a breach of the LTV ratio covenant. The property
(mixed use: retail, office, and car park) is currently being
marketed. Several bids have been received, ranging from EUR15.0
million to EUR15.4 million according to Hatfield Philips. "We
expect a full principal recovery on the securitized loan," S&P
said.

                     Loans With Refinance Risk

Four loans (Orange, Peach, Strawberry, and Apple), which comprise
65.4% of the pool, were scheduled to mature in 2011. Three of
these loans (Peach, Strawberry, and Apple) have been granted
extensions of one year until 2012, with the option of two further
one-year extensions provided certain conditions are met. The
fourth loan, the Orange loan, is in the process of being
extended. "We believe the Orange, Peach, and Apple loans will
encounter difficulty in obtaining refinancing at the extended
maturity, unless the borrowers are successful in decreasing the
LTV ratio by either increasing the value of the properties or by
the sale of properties," S&P related.

In addition, there is also refinance risk associated with the
Coconut and Pineapple loans, which mature in January 2012 and
October 2013. Both loans have reported LTV ratios above 70%. These
loans are currently meeting payment obligations. "Nonetheless, we
consider the borrowers may face refinance difficulties when they
mature in January 2012 and October 2013 The Coconut loan (EUR147.2
million, 14.2% of the pool) is secured by a portfolio of 21 retail
and office properties located throughout Germany. The loan is
currently in breach of the credit agreement due to its October
2009 sale of plots of land associated with an office property in
the portfolio. The loan has a reported LTV ratio of 80%, but this
is based on a 2006 valuation. Current net operating income has
been relatively stable, but the weighted-average remaining lease
length is 4.1 years," S&P related.

The Pineapple loan (EUR49.0 million, 4.7% of the pool) is secured
by seven multifamily properties located throughout Germany. The
loan has a reported current whole-loan LTV ratio of 86%, based on
a 2006 valuation. "We believe this loan may encounter difficulty
in obtaining refinancing, given the large portion of multifamily
loans that are due to mature in 2013. Based on our current data,
in 2013 borrowers will be seeking to refinance EUR10.3 billion of
loans backed by German multifamily properties (see 'European CMBS
Monthly Bulletin')," S&P related.

"The rating actions reflect our view of the likelihood of ultimate
principal losses associated with the Cherry and Mango loans, which
are in special servicing, and the continued refinancing
difficulties that borrowers face in the current market. We have
therefore lowered our ratings on the class A, B, C, D, and E
notes. Our downgrade of the class E notes to 'CCC (sf)' from
'B (sf)' reflects the likelihood of near-term losses associated
with the Cherry loan. We have also affirmed our 'D (sf)' rating on
the class F notes. We lowered our rating on these notes to 'D
(sf)' on Feb. 16, 2009, due to a shortfall in interest due and
also because we anticipated a principal loss as a result of the
performance of the Cherry loan (see 'Rating Lowered On Class F
And E Notes In German CMBS Transaction Talisman-6 Finance PLC'),"
S&P related.

Talisman-6 Finance closed in April 2007 with notes totaling
EUR1.076 billion. The notes have a legal final maturity date of
October 2016 and a current reduced balance of EUR1.033 billion.
The underlying collateral comprises nine loans secured on German
commercial properties.

Ratings List

Class             Rating
         To                   From

Talisman-6 Finance PLC
EUR1.076 Billion Commercial Mortgage-Backed Floating-Rate Notes

Ratings Lowered

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

Rating Affirmed

F        D (sf)


* GERMANY: Corporate Insolvencies Down 3% Year-on-Year in May 2011
------------------------------------------------------------------
According to SeeNews, the Federal Statistics Office Destatis on
Tuesday said that the number of corporate insolvencies registered
by German courts in May 2011 fell by 3% year-on-year to 2,611.

From January to May 2011, corporate insolvencies in Germany fell
by 7.2% on the year to 12,727, SeeNews discloses.


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G R E E C E
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* GREECE: Belgian Banks to Discuss Rescue Package on Aug. 16
------------------------------------------------------------
According to Bloomberg News' Jim Brunsden, La Libre Belgique,
citing an interview with Belgian Finance Minister Didier Reynders,
reported that banks including Dexia SA, KBC Groep NV and BNP
Paribas Fortis will meet with Belgian authorities on Aug. 16 to
discuss their contribution to the European Union's rescue package
for Greece.

Bloomberg notes that Mr. Reynders, as quoted by the newspaper,
said "I will bring together the banks and insurance companies with
more than EUR50 million (US$71.2 million) of exposure to Greece."


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I R E L A N D
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ALLIED IRISH: Proposes Buy-Out Scheme to Aid Struggling Homeowners
------------------------------------------------------------------
Richael O'Brien at InsolvencyJournal.ie reports that Allied Irish
Bank Plc chairman David Hodgkinson has proposed a buy-out scheme
to help homeowners, who are struggling to meet their mortgage
obligations.

Speaking at the MacGill Summer School in Glenties, Co. Donegal,
Mr. Hodgkinson outlined the plan, which AIB have presented to the
Central Bank.  Under the scheme, the bank would use capital
injected by the government, to buy back the homes of mortgage
holders and renting them back to the occupants,
InsolvencyJournal.ie relates.

According to InsolvencyJournal.ie, the scheme was one of a number
of proposals put forward by AIB to the Central Bank, during talks
on industry-wide plans.  Mr. Hodgkinson says that the bank are
exploring all options on mortgage debt, and making every effort to
help people restructure their debt, InsolvencyJournal.ie notes.

                 About Allied Irish Banks, p.l.c.

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

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

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

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

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

The Company reported a net loss of EUR10.16 billion on
EUR1.84 billion of interest income for 2010, compared with a net
loss of EUR2.33 billion on $2.87 billion of interest income for
2009.

The Company's balance sheet at June 30, 2011, showed EUR126.87
billion in total assets, EUR120.01 billion in total liabilities
and EUR6.86 billion total shareholders' equity including non-
controlling interest.


CBOM FINANCE: Fitch Rates Loan Participation Notes at 'B+'
----------------------------------------------------------
Fitch Ratings has assigned Ireland-based CBOM Finance p.l.c.'s
US$200 million 8.25% limited recourse loan participation notes due
August 5, 2014 a final Long-term 'B+' rating.

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 'b+', Individual Rating 'D',
Support Rating '5' and Support Rating Floor 'NF', Recovery Rating
'RR4'.  The Outlooks for CBM's Long-term IDRs and National Long-
term rating are Stable.

The notes have a put option exercisable if 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 is
downgraded. Fitch notes that the latter provision is unusual in
CIS bank eurobond issues, where a rating downgrade typically only
triggers a put option if it happens in conjunction with a change
of control.

CBM is a medium-sized Moscow-based bank focusing on corporate
lending.  It was the 21st-largest bank in Russia by assets at end-
H111, and is owned by Roman Avdeev.


KILLALOE HOTEL: Goes Into Receivership, RBS Appoints Receiver
-------------------------------------------------------------
Gordon Deegan at The Irish Times reports that East Clare has been
left without a court venue after a Killaloe hotel used for court
sittings went into receivership.

Gearoid Costello of Grant Thornton has been appointed by Royal
Bank of Scotland as receiver to CC Hotels Ltd, operator of the
Kincora Hall hotel, according to The Irish Times.

The report notes that the The Kincora Hall hotel has been staging
sittings for the Killaloe and wider east Clare district over the
past 11 months after the sittings were transferred from the
Lakeside Hotel in Ballina, Co Tipperary.

The Irish Times says that court users, including members of the
legal profession, were informed by e-mail of the hotel going into
receivership and that Judge Joseph Mangan had directed that
Killaloe District Court sittings for September and October would
be held in Ennis.


O'CONNORS NENAGH: High Court Judge Refuses to Interfere in Sale
---------------------------------------------------------------
The Irish Times reports that a High Court judge has refused to
interfere with a judgment recently delivered by one of his
colleagues in relation to the sale of O'Connor's Nenagh Shopping
Centre Ltd.

Justice Garrett Sheehan was told on Friday that Justice John
MacMenamin had refused to block the sale of the debt-ridden centre
after having been told a receiver appointed by Bank of Ireland had
a multimillion-euro offer for it, according to The Irish Times.

The Irish Times relates that Justice MacMenamin had rejected an
application by company liquidator Anthony Fitzpatrick to block the
sale.  He decided the best course would be to permit the sale to
go ahead on the basis that the proceeds would be ringfenced, the
report notes.

According to the report, the bank's receiver, Kieran Wallace, told
Justice MacMenamin the money would be protected until the High
Court ruled on a claim that the O'Connor family-owned company had
remortgaged the centre, which closed last May, to allow family
investments an unfair preference over other creditors in a
liquidation.

The Irish Times says counsel Ronnie Hudson told Justice Sheehan
that Justice MacMenamin had subsequently granted the liquidator
permission to apply to any vacation judge for liberty to vacate
his judgment on the basis of "dramatic new evidence that had just
come to light".

Mr. Hudson, as cited by The Irish Times, said that in the
application asking Justice MacMenamin to revisit his judgment he
had brought to the judge's attention matters of title which, he
had contended, would prohibit a sale or make one extremely
difficult.

Una Cassidy, counsel for the receiver, said Justice MacMenamin had
delivered his judgment refusing the liquidator an interlocutory
injunction blocking the sale, the report notes.  If he wished to
revisit his judgment it would be a matter for him.

The Irish Times relates that Ms. Cassidy said the main issue of
whether certain charges by the bank against the company were void
would be dealt with by Justice Mary Laffoy on Oct. 7, 2011.

Justice Sheehan, adjourning all issues until then, said if he
wished the liquidator could mention the matter to Justice
MacMenamin when he sits as a vacation duty judge during September,
the report notes.

O'Connors Nenagh Shopping Centre ceased trading on May 26, 2011,
with the loss of 70 jobs.

O'Connors Nenagh Shopping Centre Limited is a supermarket in
Nenagh, Co Tipperary.


PAN EUROPE: Fitch Upgrades Rating on Class H Notes to 'Bsf'
-----------------------------------------------------------
Fitch Ratings has upgraded three and affirmed three classes of
DECO Series 2005 -- Pan Europe 1 plc's (PE1) commercial mortgage-
backed notes, as follows:

   * EUR10.4m class B due July 2014 (XS0227110326) affirmed at
     'AAAsf'; Outlook Stable

   * EUR33.9m class C due July 2014 (XS0227112884) affirmed at
     'AAAsf'; Outlook Stable

   * EUR8.5m class D due July 2014 (XS0235684114) affirmed at
     'AAsf'; Outlook Stable

   * EUR21.2m class E due July 2014 (XS0227113692) affirmed at
     'Asf'; Outlook Stable

   * EUR17m class F due July 2014 (XS0227115630) upgraded to
     'BBBsf' from 'BBsf'; Outlook Stable

   * EUR10.6m class G due July 2014 (XS0227116950) upgraded to
     'BBsf' from 'Bsf'; Outlook Stable

   * EUR4.9m class H due July 2014 (XS0227117503) upgraded to
     'Bsf' from 'CCCsf'; Outlook Stable

The rating actions have been driven by the stable collateral
performance in the past 12 months and the repayment of three loans
since January 2010.

With final legal maturity of the bonds in July 2014, the use of
loan extension at maturity is not an option for the remaining
loans (all three mature in April or July 2012).  Final redemption
funds will be used to repay the outstanding notes in a modified
pro-rata manner unless a sequential payment trigger is breached.
This will be triggered at the April 2012 interest payment date in
any scenario; if a loan defaults at maturity or if a loan repays
at maturity (the current note balance will be less than 10% of the
original note balance).

The euro-funded transaction contains one loan denominated in Swiss
francs.  A currency swap is in place to avoid mismatches between
the amounts received under the loans and the amounts due under the
notes.  Fitch understands this to be fully balance-guaranteed and
therefore does not expose the structure to the volatility of
foreign exchange markets.


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


CIRENE FINANCE: S&P Affirms Rating on Class E Notes at 'BB'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its credit rating on
Cirene Finance S.r.l.'s class C notes. "At the same time, we
affirmed our ratings on the class B, D, and E notes," S&P said.

"The rating actions follow our review of the nonperforming loan
(NPL) portfolio's performance, the recovery prospects of the
residual portfolio composition and connected collection prospects,
and the structural deleveraging recorded since closing," S&P
related.

"In our stressed cash flow scenarios arising from our adjusted
gross book value (GBV) and the average collection amounts for each
rating category, we assessed the likelihood that the notes in
Cirene Finance would fully redeem by legal final maturity in 2017.
In addition to assessing the amounts collected in these scenarios,
we stressed the timing of recoveries in our analysis, whereby
collections could stall in the near term and recover in the future
according to those rating scenarios. In light of these findings,
and also the structural deleveraging of the transaction, we have
raised our rating on the class C notes and affirmed our ratings on
the class B, D, and E notes," S&P related.

"The rating actions also take into account our assessment of the
current economic environment and the lower available liquidity for
residential and commercial real estate acquisitions, which could
lengthen the timing of collections and reduce recovery rates," S&P
said.

Cirene features a pass-through structure where the issuer uses all
cash remaining in the waterfall, after the payment of the interest
on the rated notes, to redeem the most senior outstanding
tranches.  As of the latest interest payment date (IPD) on June
15, 2011, the issuer had redeemed about 64% of the original rated
debt.

The open GBV -- the original gross value of the claims -- was
about EUR132 million as of the latest IPD. Since closing, the
servicer has recovered EUR64 million on the fully closed positions
(representing 62% of the total collections from the transfer
date). The remaining recoveries are related to partial collections
on previously open positions. "By using the average recovery rate
recorded on fully closed positions (78%) to extrapolate the GBV
connected to partial collections, we estimate that the adjusted
open GBV would be about EUR81.7 million. In our analysis, we
further made a deduction to the GBV for the existence of unsecured
credits in the pool of NPLs. Advance rates (defined as rated debt
over adjusted open GBV) have improved significantly for classes A,
B, and C since closing," S&P related.

Over the past two semiannual collection periods, gross collections
have been in aggregate about EUR8.8 million, down from EUR17.5
million recorded in the previous two collection periods. Although
part of this drop may be due to the ongoing reduction of the
active GBV, a higher reliance on cash flows arising from court
decisions versus discounted payoffs may be affecting the timing of
recoveries, in addition to the current economic environment. The
recovery rates, on the other hand, have been increasing since our
last review in 2009.

The underlying portfolio's composition has not changed
significantly since closing. As it matures, the portfolio
continues to be lightly skewed toward relatively recent defaults.
The distribution by borrower type has now inverted since cutoff:
Exposure to NPLs from small businesses are nearly 55% of the
pool, whereas corporate NPLs have reduced to about 43% from about
60% since cutoff. The geographical concentration of the
outstanding GBV compared with the open GBV does not differ
significantly from the closing portfolio, with only a slightly
larger concentration in Southern Italy since cutoff.

"Our review of the counterparty documents indicates that the
transaction account bank and the swap agreement do not fully
comply with our criteria for counterparty and supporting
obligations. The maximum rating achievable in the transaction is
'AA-'," S&P stated.

The collateral backing the transaction comprises a portfolio of
secured and unsecured NPLs that Banca Monte dei Paschi di Siena
SpA originated. The outstanding portfolio largely comprises
positions secured by first-ranking mortgages on residential and
commercial/industrial properties. The servicer is MPS Gestione
Crediti Banca SpA.

Ratings List

Class              Rating
            To               From

Cirene Finance S.r.l.
EUR101.45 Million Mortgage-Backed Floating-Rate Notes and
Deferrable-Interest
Notes

Rating Raised

C           AA- (sf)          A (sf)

Ratings Affirmed

B           AA- (sf)
D           BBB (sf)
E           BB (sf)


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


ASTANA FINANCE: Fitch Maintains 'C' IDRs on Watch Negative
----------------------------------------------------------
Fitch Ratings has affirmed and withdrawn Kazakh JSC Astana
Finance's (AF) ratings, including its Long-term foreign currency
Issuer Default Rating (IDR) at 'RD' (Restricted Default). The
agency has also maintained Astana Finance Leasing Company JSC's
(AFL) 'C' IDRs on Rating Watch Negative (RWN) and withdrawn its
ratings.

Fitch has withdrawn the ratings of both companies as both issuers
have chosen to stop participating in the rating process.
Therefore, Fitch will no longer have sufficient information to
maintain the ratings. Accordingly, the agency will no longer
provide ratings or analytical coverage of both companies.

The affirmation of AF's IDRs at 'RD' reflects the fact that the
company has not yet completed the restructuring process which it
entered soon after its default in May 2009. Fitch has maintained
AFL's IDRs at the 'C' level on the basis that the company has
continued to service its third party obligations, according to
AF's management representations. However, the agency has
maintained AFL's IDRs on RWN reflecting Fitch's expectation that
AFL's third party liabilities will become subject to a coercive
debt exchange (CDE) as part of the restructuring.

AF is a finance company which defaulted in May 2009 and began
restructuring negotiations on about US$2 billion of debt. AFL is
AF's 100%-owned subsidiary.

The rating actions are:

JSC Astana Finance

   -- Long-term foreign currency IDR affirmed at 'RD'; withdrawn

   -- Short-term foreign currency IDR affirmed at 'RD'; withdrawn

   -- Long-term local currency IDR affirmed at 'RD'; withdrawn

   -- National Long-term Rating affirmed at 'RD(kaz)'; withdrawn

   -- Individual Rating affirmed at 'F'; withdrawn

   -- Support Rating affirmed at '5'; withdrawn

   -- Support Rating Floor affirmed at 'No Floor'; withdrawn

   -- Senior unsecured debt rating affirmed at 'C'/RR4/; withdrawn

Astana Finance Leasing Company JSC

   -- Long-term foreign currency IDR 'C'; RWN maintained;
      withdrawn

   -- Short-term foreign currency IDR 'C'; RWN maintained;
      withdrawn

   -- Long-term local currency IDR 'C'; RWN maintained; withdrawn

   -- National Long-Term Rating 'C(kaz)'; RWN maintained;
      withdrawn

   -- Support Rating affirmed at '5'; withdrawn


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


NEPTUNO CLO: Moody's Upgrades Rating on Class E Notes to 'B2 (sf)'
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of these notes
issued by Neptuno CLO III B.V.:

Issuer: Neptuno CLO III B.V.

EUR243.95M Class A-1 Senior Secured Floating Rate Notes due 2024,
Upgraded to Aa1 (sf); previously on Jun 22, 2011 Aa2 (sf) Placed
Under Review for Possible Upgrade

EUR200M Class A-2 Senior Secured Delayed Draw Floating Rate Notes
due 2024, Upgraded to Aa1 (sf); previously on Jun 22, 2011 Aa2
(sf) Placed Under Review for Possible Upgrade

EUR61.75M Class B Senior Secured Floating Rate Notes due 2024,
Upgraded to A3 (sf); previously on Jun 22, 2011 Baa2 (sf) Placed
Under Review for Possible Upgrade

EUR27.3M Class C Senior Secured Deferrable Floating Rate Notes
due 2024, Upgraded to Baa3 (sf); previously on Jun 22, 2011 Ba2
(sf) Placed Under Review for Possible Upgrade

EUR27.95M Class D Senior Secured Deferrable Floating Rate Notes
due 2024, Upgraded to Ba2 (sf); previously on Jun 22, 2011 B1
(sf) Placed Under Review for Possible Upgrade

EUR27.3M Class E Senior Secured Deferrable Floating Rate Notes
due 2024, Upgraded to B2 (sf); previously on Jun 22, 2011 Caa2
(sf) Placed Under Review for Possible Upgrade

Ratings Rationale

Neptuno CLO III, issued in December 2007, is a single currency
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly high yield European leveraged loans. The portfolio is
managed by Bankia. This transaction will be in reinvestment period
until January 5, 2014. It is predominantly composed of senior
secured loans.

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

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

Moody's also notes that this action also reflects improvements of
the transaction performance since the last rating action. In
Moody's view, positive developments coincide with reinvestment of
sale proceeds and/or prepayments (including higher than previously
anticipated recoveries realized on defaulted securities) into
substitute assets with higher par amounts and higher ratings.

The overcollateralization ratios of the rated notes have improved
since the rating action in November 2009. The Class C, Class D and
Class E overcollateralization ratios are reported at 117.6% and
111.7% and 106.8%, respectively, versus November 2009 levels of
112.8% 107.2% and 102.5%, respectively, and all related
overcollateralization tests are currently in compliance.

Improvement in the credit quality is observed through a better
average credit rating of the portfolio (as measured by the
weighted average rating factor "WARF") and a decrease in the
proportion of securities from issuers rated Caa1 and below. In
particular, as of the latest trustee report dated July 2011, the
WARF is currently 2798 compared to 2947 in the October 2009
report, and securities rated Caa or lower make up approximately
10.9% of the underlying portfolio versus 12.37% in October 2009.
However, the reported WARF understates the actual improvement in
credit quality because of the technical transition related to
rating factors of European corporate credit estimates, as
announced in the press release published by Moody's on Sept. 1,
2010.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as the portfolio par amount, WARF,
diversity score, and weighted average recovery rate, may be
different from the trustee's reported numbers. In its base case,
Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of EUR636.9 million,
defaulted par of EUR6.9 million, a weighted average default
probability of 24.1% (consistent with a WARF of 2733, a weighted
average recovery rate upon default of 41.5% for a Aaa liability
target rating, and a diversity score of 38. The default
probability is derived from the credit quality of the collateral
pool and Moody's assumption on the remaining life of the
collateral pool. The average recovery rate to be realized on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating, Moody's
assumed that 76.2% of the portfolio exposed to senior secured
corporate assets would recover 50% upon default, while the
remainder non first-lien loan corporate assets would recover 10%.
In each case, historical and market performance trends and
collateral manager latitude for trading the collateral are also
relevant factors. These default and recovery properties of the
collateral pool are incorporated in cash flow model analysis where
they are subject to stresses as a function of the target rating of
each CLO liability being reviewed.

Various additional scenarios have been considered for the analysis
and include the application of stresses applicable to concentrated
pools with non publicly rated issuers, as outlined in "Updated
Approach to the Usage of Credit Estimates in Rated Transactions"
published in October 2009.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy especially as 18.7% of
the portfolio is exposed to obligors located in Greece, Portugal,
Ireland, Spain and Italy and 2) the large concentration of
speculative-grade debt maturing between 2012 and 2015 which may
create challenges for issuers to refinance. CLO notes' performance
may also be impacted by 1) the manager's investment strategy and
behavior and 2) divergence in legal interpretation of CDO
documentation by different transactional parties due to embedded
ambiguities.

Sources of additional performance uncertainties are:

1) Moody's also notes that around 54.4% of the collateral pool
   consists of debt obligations whose credit quality has been
   assessed through Moody's credit estimates. Large single
   exposures to obligors bearing a credit estimate have been
   subject to a stress applicable to concentrated pools as per the
   report titled "Updated Approach to the Usage of Credit
   Estimates in Rated Transactions" published in October 2009.

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

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011. Other factors used in this rating are described in
"Updated Approach to the Usage of Credit Estimates in Rated
Transactions" published in October 2009.

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

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

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


SMILE 2007: Fitch Downgrades Rating on Class E Notes to 'CCsf'
--------------------------------------------------------------
Fitch Ratings has taken various rating actions on the Smile
Securitisation Company 2001-1 B.V.'s (Smile 2001), Smile 2005
Synthetic B.V.'s (Smile 2005) and Smile Securitisation Company
2007 B.V.'s (Smile 2007) notes.

The affirmation of Smile 2001's A2, B2, C2 and D2 notes reflects
the low level of defaults (cumulative defaults are at 1.1% of
initial pool balance) and substantial deleveraging (outstanding
portfolio is at 5.5% of initial pool balance) since closing in
2001. A reserve fund at its target level of EUR10 million and
95bps excess spread are also available for loss absorption.

The issuer has the option to call Smile 2001 on any quarterly
payment date from November 2011. If the deal is not called in
November 2011, several transaction structural features will
change: (1) excess spread will be trapped in the transaction,
providing extra credit enhancement, (2) amounts in the principal
collection account (totalling EUR302 million as at end-June 2011)
will be used to sequentially amortize the outstanding notes, and
(3) interest payments on the outstanding notes will switch from
annual fixed-pay to quarterly floating-pay on a three-month
Euribor basis at increased margins. Fitch views the first two
changes as positive for the outstanding notes and the third as
neutral because interest payments are hedged with the swap
counterparty. The agency notes that the swap counterparty's
payment obligations under the swap will decrease from its current
level due to the interest switch at the current Euribor rate.

The affirmation of Smile 2005's A2, B,C,D and E notes reflect the
low level of defaults since close (cumulative defaults are at 1%
of initial pool balance), high historical recoveries on defaulted
assets and the transaction's short remaining life (scheduled
maturity is the payment date in January 2012). A reserve fund of
EUR34m and an ongoing 25bps excess spread payment (paid under the
swap) are available for loss absorption.

The downgrade of Smile 2007's A, B, C, D and E notes is driven by
the transaction's longer risk horizon (nearly 50% of the portfolio
has a maturity of 10 years or more) versus the other Smile
transactions and lower relative credit enhancement in the form of
subordination and a reserve fund to support higher defaults over
such a horizon. Although performance has been similar to the other
Smile transactions, Smile 2007 has a large bucket of lowly-rated
assets and also nearly 1% of unresolved defaults.

Fitch has adjusted the probabilities of default (PDs) of Smile
2001, Smile 2005 and Smile 2007's unrated SME loans downwards from
its criteria because the transactions' observed defaults have been
lower than the agency's criteria. The adjusted PDs are based on
the internal PDs of the originating bank, ABN AMRO Bank N.V.

The rating actions are:

Smile 2001:

   -- EUR500m class A2 senior notes (XS0140352229): affirmed at
      'AAAsf'; Outlook Stable;

   -- EUR30m class B2 mezzanine notes (XS0140353623): affirmed at
      'AAAsf'; Outlook Stable;

   -- EUR27.5m class C2 junior notes (XS0140353979): affirmed at
      'AAsf'; Outlook Stable;

   -- EUR21m class D2 subordinated notes (XS0140354357): affirmed
      at 'BBsf'; Outlook Negative.

Smile 2005:

   -- EUR1,326.9m class A2 notes (NL0000081552): affirmed at
      'AAsf'; Outlook Stable;

   -- EUR72.4m class B notes (XS0238920499): affirmed at 'Asf';
      Outlook Stable;

   -- EUR53.6m class C notes (XS0238920655): affirmed at 'BBBsf';
      Outlook revised to Stable from Negative;

   -- EUR53.6m class D notes (XS0238921034): affirmed at 'BBsf';
      Outlook revised to Stable from Negative;

   -- EUR72.4m class E notes (XS0238921380): affirmed at 'CCCsf';
      assigned Recovery Rating 'RR1'.

Smile 2007:

   -- EUR1,721.9m class A notes (NL0000169142): downgraded to
      'BBBsf' from 'BBB+sf'; Outlook Stable;

   -- EUR60.5m class B notes (XS0288450736): downgraded to 'BBsf'
      from 'BBB-sf'; Outlook Stable;

   -- EUR45.4m class C notes (XS0288453599): downgraded to 'Bsf'
      from 'BBsf'; Outlook Negative;

   -- EUR45.4m class D notes (XS0288455370): downgraded to 'CCCsf'
      from 'Bsf'; assigned Recovery Rating 'RR2'.

   -- EUR51.4m class E notes (XS0288455883): downgraded to 'CCsf'
      from 'CCCsf'; assigned Recovery Rating 'RR6'.


===========
P O L A N D
===========


ZLOMREX SA: Moody's Upgrades CFR to 'Caa2'; Outlook Stable
----------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
(CFR) of Zlomrex S.A. to Caa2 from Caa3. Concurrently, Moody's
upgraded the bond rating of Zlomrex International Finance S.A. to
Caa2 (LGD4, 52%) from Ca (LGD5, 82%). The outlook on all ratings
has been changed to stable from negative.

Ratings Rationale

The rating action has been prompted by (i) the disposal of the
group's Distribution division, which leads to an improvement of
the short-term liquidity profile of the group with proceeds of
around PLN280 million to be received in 2011 and expected deferred
payments of PLN40 million thereafter, and (ii) significantly
reduced leverage due to the repayment of short-term indebtedness
and improved trading performance on the back of increasing
volumes, utilization rates and spreads between steel- and scrap
prices.

At the same time, Moody's cautions that (i) despite improved
trading conditions the recovery of the Polish steel market remains
fragile, (ii) Moody's does not expect Zlomrex to generate positive
free cash flow in 2011 due to working capital build-up with
limited visibility into 2012 and 2013, (iii) despite an
improvement of Zlomrex' short-term liquidity the refinancing of
the EUR120 million bond coming due in 2014 could be challenging
and (iv) even though Zlomrex has received bondholder approval for
its re-organization there are still some moving parts in the
overall corporate structure.

Despite the disposal of its distribution business and the
application of the proceeds to repay short term indebtedness,
Zlomrex' short term liquidity remains tight and relies on the
ability of Zlomrex to constantly roll-over its factoring lines and
a continued positive development of the funds generated from
operations.

The bond rating has been upgraded by two notches to Caa2 given a
substantial reduction in the second quarter 2011 of Zlomrex'
senior secured bank debt, which ranks ahead the secured notes
which only benefit from share pledges but are guaranteed by
operating subsidiaries. The company's trade payables, lease
commitments for the next year and the pension deficit rank in line
with the notes.

The stable outlook reflects the expected substantial reduction of
overall indebtedness by around PLN170 million in the first half
2011 and our expectation of improved operating performance leading
to strongly improved leverage metrics. It also incorporates the
expectation that Zlomrex' short term liquidity situation will
improve considerably in the coming months on the back of lower
working capital needs and that Zlomrex will in a timely manner
address the maturity of the outstanding bond which is coming due
in July 2014.

The rating could be upgraded if Zlomrex is able to generate
positive free cash flow on a sustainable basis and retain an
adequate liquidity whilst improving and sustaining Moody's
adjusted debt/ EBITDA below 7.0x (per LTM Q3 2011 12.7x).

Negative pressure on the rating would arise if Zlomrex continued
to generate negative free cash flow from 2012 onwards or if the
short-term liquidity profile weakened further.

The principal methodology used in rating Zlomrex S.A. was the
Global Steel Industry Methodology published in January 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009. Please see the Credit Policy page on
www.moodys.com for a copy of these methodologies.

Headquartered in Poraj, Poland, Zlomrex S.A. is the largest trader
of steel scrap and among the leading producers of high grade long
steel products in its domestic market. Founded in 1990 as a pure
scrap trader, the company has transformed itself into a fully-
integrated producer of steel products through a range of
acquisitions mainly in the long steel production and distribution
business, which was recently divested. Zlomrex S.A. is privately
owned with 100% of the company's shares are held by its founder
Mr. Przemyslaw Sztuczkowski.


===============
P O R T U G A L
===============


LUSITANO SME: Fitch Lowers Rating on EUR29.8-Mil. Notes to 'CCCsf'
------------------------------------------------------------------
Fitch Ratings has affirmed Lusitano SME No.1 plc's class A and B
notes and downgraded the class C notes.

The rating actions are as follows:

  * EUR370,453,382 class A (ISIN XS0272317990): affirmed at
    'BBBsf', Outlook Stable

  * EUR35,931,170 class B (ISIN XS0272318295): affirmed at
    'AAAsf', Outlook Stable

  * EUR29,879,503 class C (ISIN XS0272318378): downgraded to
    'CCCsf' from 'Bsf', assigned Recovery Rating 'RR-3'

The rating actions follow Fitch's annual review of the transaction
and primarily reflect the material deterioration in the underlying
portfolio.  The current defaults (6.7% of the initial portfolio
balance) have increased significantly over the past year while
delinquencies have been stable as cure rates appear to have
decreased.  Fitch expects defaults to rise further due to the
volume of arrears in the delinquency pipeline.  The reserve fund
is below the required level but is expected to replenish through
proceeds from the interest waterfall.

The affirmation of the class A notes reflects the increased credit
enhancement (CE) and its ability to withstand Fitch's stresses on
default probability, recoveries and obligor concentration.  The
class A notes benefit from additional protection through a
structural mechanism where excess spread is retained against
defaulted assets.  Excess spread to date has been sufficient to
cover the required provisioning and the principal deficiency
ledgers have a zero balance.  Fitch also draws comfort from the
increasing trend on principal recoveries and considers the class A
note to have a sufficient cushion within the rating category to
warrant a Stable Outlook.

The class C note was downgraded to 'CCCsf' because the available
CE is lower than Fitch's 'Bsf' loss expectation.  A further
increase in defaults and lower material recoveries may reduce the
structure's ability to provision and expose the class C note to
losses.  In terms of obligor coverage, the class C note can
withstand the default of the eight largest obligors at a stressed
recovery rate.

The class B note was affirmed solely due to the guarantee provided
by the European Investment Fund (EIF; 'AAA'/Stable/'F1+') for
timely payment of interest and ultimate repayment of principal.

Fitch's analysis included assumptions on the probability of
default (PD) and loss severity with regards to current
delinquencies as well as the performing portfolio.  Fitch assumed
a PD for the assets commensurate with the country benchmark for
Portugal.  Delinquent loans were analyzed with a higher PD
depending on how long the loans have been in arrears.  Recoveries
for loans secured by first-lien mortgages were adjusted for market
value stresses based on the agency's criteria.  Loans with second-
lien mortgages and other types of collateral were treated as
unsecured.

Lusitano SME No.1 plc is a revolving cash flow securitization of
loans to Portuguese small- and medium-sized enterprises granted by
Banco Espirito Santo.  The portfolio is secured against property,
land, personal guarantees, cash deposits and portfolios of
equities in Portugal.

Fitch has assigned an Issuer Report Grade of one star ("poor") to
the publicly available reports on the transaction.  The reporting
is accurate and timely and contains detailed information on
delinquencies, defaults, and liabilities and various portfolio
stratifications.  The assignment of one star reflects the lack of
information in the investor report on the transaction's
counterparties and rating triggers.


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


BARCLAYS BANK: Moody's Downgrades Currency Deposit Ratings to 'B3'
------------------------------------------------------------------
Moody's Investors Service has downgraded the long-term local and
foreign currency deposit ratings of Barclays Bank LLC (Russia)
(BBR) to B3 from Ba3. BBR's standalone E+ bank financial strength
rating ("BFSR") and its Not Prime short-term local and foreign
currency deposit ratings were affirmed. The outlook on all of the
bank's ratings is negative. Moody's will also withdraw all of the
ratings for its own business reasons.

Ratings Rationale

According to Moody's, this rating action was driven by a
combination of two factors: (1) the deterioration of BBR's
standalone credit strength; and (2) the planned sale of BBR by its
parent Barclays Bank PLC ("Barclays", rated Aa3(negative)/
Prime-1/C(stable)), which is likely to be completed by year-end
2011.

Moody's explained that BBR's standalone BFSR of E+, which now maps
to a long-term scale of B3, as opposed to B2 previously, is under
negative pressure stemming from (1) the bank's weakened market
franchise; and (2) its poor profitability and cost-efficiency,
whereby the bank's administrative costs materially exceed its
operating revenues generated by current business volumes. More
positively, BBR's standalone E+ BFSR is underpinned by (1) the
bank's high capitalization, with its statutory capital adequacy
ratio (N1) standing at 28.04% as at 1 July 2011 and the capital
being predominantly formed of the core Tier 1 component, and (2)
BBR's sound liquidity position, with liquid assets exceeding one
third of the bank's total assets and the net loan-to-deposit ratio
being close to 100%.

Furthermore, the rating agency's assumptions of potential parental
support to BBR, in case of distress, have diminished following
Barclays' recent statements that the group is approaching the
finalization of its divestment from BBR. This warrants a removal
of any support uplift from BBR's deposit ratings which are now
aligned with the bank's long-term scale of B3, mapped from its
BFSR of E+.

BBR does not currently have any outstanding debt rated by Moody's.

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, Barclays Bank LLC (Russia)
reported -- in accordance with audited IFRS -- total assets of
US$903.8 million as at year-end 2010 and net operating loss of
US$20.2 million for the year.


CENTROCREDIT BANK: Fitch Affirms Long-Term IDR at 'B-'
------------------------------------------------------
Fitch Ratings has affirmed CentroCredit Bank's (CCB) and
Probusiness Bank's (PBB) Long-term Issuer Default Ratings (IDR) at
'B-' with a Stable Outlook. At the same time, Fitch has placed
Central Commercial Bank's ratings, including its 'B-' Long-term
IDR, on Rating Watch Negative (RWN).

PBB's ratings reflect significant volumes of problem assets on the
bank's balance sheet post-crisis and its weak capital position.
However, the Stable Outlook reflects the currently supportive
operating environment, PBB's comfortable liquidity and solid pre-
impairment profitability, which together should provide sufficient
financial flexibility for the bank to gradually recover.

Non-performing loans (NPLs, loans overdue by 90 days) stood at
9.4% at end-2010 (the last date for which consolidated data is
available), down from 17.8% at end-2009 as a result of loans sales
and write-offs. The Basel I total capital ratio was a low 10.4% at
end-2010, and further undermined by significant property
investments (75% of equity), loan exposures to development
projects (40% of equity), and bank placements (21% of equity),
which Fitch believes may be restricted in nature.

Pre-impairment profitability was a healthy 48% of average equity
in 2010, underpinned by a net interest margin of 12.8% driven by
high interest rates on unsecured retail loans (50% of the loan
book). The expanded franchise (which included 375 branches at end-
Q111), should also help with both loan origination and sourcing
funding. Liquidity was comfortable at end-H111, with Fitch
calculating that liquid assets covered customer accounts by 39%.

CentroCredit Bank's ratings are constrained by its limited
franchise and significant exposure to market risk. They also
reflect its solid profitability, strong capital and limited
liquidity risk. CCB has significant securities exposure (72% of
end-H111 assets) of good credit quality (mostly sovereign and
Moscow government bonds), which is almost fully repoed with market
counterparties. The significant maturity mismatch and therefore
rates differential between one-week repo funding and the
securities assets with an average duration of eight years is the
main driver of the bank's significant profit (ROE of 57.6% in
2010). Liquidity risk is mitigated by the bank's ability to
refinance the securities book with the Central Bank of Russia, in
case of market stress.

CCB's small loan book (20% of assets at end-H111) was 48% covered
by reserves and poses minimal credit risk, in Fitch's view, as
CCB's loss absorption capacity is enough to create 100% provisions
against its loan book. However, the currently high provisioning
rate may be a source of regulatory risk. This is mitigated by the
recent inspection of the bank carried out by the CBR and tax
authorities, which did not identify any material incompliance.

The RWN on Central Commercial Bank's ratings reflects Fitch's
growing concerns about the bank's ability to service its
increasing third-party retail deposits (28% of liabilities at end-
H111) in view of the limited transparency of its loan book, which
is dominated by small companies with limited credit history in CCB
or other banks. Most exposures are either secured by guarantees
(55% of the end-2010 loan book), in some cases by other of CCB's
borrowers, or unsecured (18%). Although reported NPLs were a low
1.8% at end-2010, there is a substantial amount of restructured
lending (46% of the end-2010 loan book), and limited visibility of
the sources of loan repayment for the bank's borrowers. However,
the dependence on retail deposits is likely to further increase as
the bank has to repay RUB700 million of wholesale funding in Q112.
Fitch also has concerns over CCB's tightening liquidity (liquid
assets decreased to 10% of assets at end-H111 from 20% at end-
2010). Corporate customer funding is extremely concentrated: the
largest 20 depositors accounted for a high 35% of end-2010
liabilities, further elevating liquidity risk. Of these, two
(equalling 23% of end-2010 liabilities) are offshore companies,
which, according to management, belong to business partners of the
shareholder.

Fitch expects to resolve the RWN upon further analysis of CCB's
loan book and its quality, as well as of certain depositors. The
ratings may be affirmed if following this review Fitch considers
that the bank sufficiently solvent and liquid to service its
current third party obligations. Conversely, if the review raises
heightened concerns about the quality of the bank's assets and the
stickiness of its deposits, the ratings may be downgraded.

The rating actions are:

PBB

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

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

   -- Short-term IDR: affirmed at 'B'

   -- Viability Rating: affirmed at 'b-'

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

   -- Support Rating: affirmed at '5'

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

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

CCB

   -- Long-Term Foreign Currency IDR: affirmed at 'B-'; Outlook
      Stable

   -- Short-Term Foreign Currency IDR: affirmed at 'B'; Outlook
      Stable

   -- National Long-Term Rating: affirmed at 'BB(rus)'; Outlook
      Stable

   -- Viability Rating: affirmed at 'b-';

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

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at 'NF'

Central Commercial Bank

   -- Long-Term Foreign Currency IDR: 'B-'; placed on RWN

   -- Short-Term Foreign Currency IDR: 'B'; placed on RWN

   -- National Long-Term Rating: 'BB-(rus)'; placed on RWN

   -- Viability Rating: 'b-', placed on RWN

   -- Individual Rating: 'D/E'; placed on RWN

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at 'NF'


CONTINENT AIRLINES: Meshchansky Court Releases CEO From Detention
-----------------------------------------------------------------
Itar-Tass reports that the Moscow Interregional Transport
Investigation Department of the RF Investigative Committee-SK has
appealed the decision of the Meshchansky Court of Moscow that
refused to sanction the arrest of CEO and co-owner of Continent
airline Vladimir Krasilnikov who is accused of fraud and
intentional bankruptcy.

"Investigator (of the Moscow Interregional Transport Investigation
Department of the RF Investigative Committee -SK) has filed a
complaint against the refusal to grant his appeal for
Krasilnikov's detention in custody as a measure of restraint," the
court's spokeswoman Yelena Kolesnikova told Itar-Tass.

The complaint will be reviewed by a higher authority, the Moscow
City Court, however, the date is yet unknown, Itar-Tass notes.

On July 29, Continent declared bankruptcy, after which its Air
Operator Certificate was revoked, Itar-Tass recounts.  This is due
to the termination of refuelling of the Continent airline at
Russian airports because of the lack of needed funding, Itar-Tass
discloses.  According to Itar-Tass, the air carrier's debt to
airports was RUR32 million.

After the revocation of the certificate by the Federal Air
Transport Agency (Rosaviatsiya), the company suspended flight from
July 30, Itar-Tass relates.  As a result, in the period from
July 29 to July 31 alone, a total of 69 flights were cancelled
that were supposed to carry over 3,000 passengers, Itar-Tass
states.

Mr. Krasilnikov was detained as a result of an inspection in
connection with mass cancellation of flights due to the company's
financial insolvency, Itar-Tass notes.  He was charged, but the
court found no grounds for the businessman's detention in custody
and he was released in the courtroom, Itar-Tass relates.


GLOBEXBANK: Fitch Assigns 'BB' Ratings to Senior Unsecured Bonds
----------------------------------------------------------------
Fitch Ratings has assigned GLOBEXBANK's RUB3 billion Series BO-04
and RUB2 billion Series BO-06 6.95% three-year senior unsecured
bonds final Long-term local currency ratings of 'BB' and National
Long-term ratings of 'AA-(rus)'.

The bank's ratings are Long-term Issuer Default Rating (IDR) 'BB'
with Stable Outlook, Short-term IDR 'B', Viability Rating 'b',
Individual Rating 'D/E', National Long-term rating 'AA-(rus)' with
Stable Outlook and Support Rating '3'.

GB is 99.2% owned by Vnesheconombank (VEB; 'BBB'/ Stable), and on
a standalone basis, ranked as the 33rd largest bank in Russia at
end-Q111.  In February 2011, with the support of VEB, GB acquired
National Trade Bank, which operates in the Samara region.


RUSSLAVBANK: Moody's Affirms 'E+' Bank Financial Strength Rating
----------------------------------------------------------------
Moody's Investors Service has affirmed these ratings of
Russlavbank (RSB): 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 RSB's ratings is based on the bank's
audited financial statements for 2010 prepared under IFRS, and its
H1 2011 unaudited results prepared under local GAAP.

Ratings Rationale

According to Moody's, RSB's ratings remain constrained by (i) the
bank's weak asset quality; (ii) the relatively high single-name
concentration on the both sides of the bank's balance sheet; (iii)
the short-term nature of the funding base; and (iv) its small size
and narrow banking franchise.

Moody's also observes that the ratings are underpinned by (i)
RSB's good position in the niche express cash transfer market
which enables the bank to generate solid recurring earnings, and
(ii) the high level of liquid assets, accounting for over 40% of
the bank's total assets.

Although RSB accumulated significant loan loss reserves of 17% of
gross loans at YE2010, weak asset quality is the major challenge.
The bank's 30 days past-due loans soared to 20% of gross loans at
the same date, from 9% the previous year. Poor asset quality also
weighs on RSB's profitability which has declined significantly
over the past three years. Moreover, the level of single-name
concentration remained relatively high. The top-20 credit
exposures accounted for 42% of the gross loan portfolio, or
exceeded 200% of its Tier 1 capital at YE2010, thus exposing its
earnings to potential volatility in case of credit stress.

Moody's views positively that RSB's solid recurring earnings
(reported in 2010) were sufficient to cover an increased level of
provisioning. The rating agency notes the bank's good
profitability metrics which are driven by healthy net interest
margin (7% in 2010) and fee-generating capacity. RSB's proprietary
'CONTACT' money transfer system remains the main source of the
bank's fee and commission earnings, which, in turn, comprised 44%
of its operating revenues at YE2010. At the same time, accrued
losses from problem loans and shrinkage of interest-earning assets
have contributed to a worsening of RSB's net income.

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 Moscow, Russia, RSB reported total IFRS assets
(audited) of RUB14.9 billion (approximately US$487 million) and
equity of RUB1.7 billion (approximately US$55 million)


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


AYT CAIXA: Fitch Affirms 'Csf' Ratings on Two Note Classes
----------------------------------------------------------
Fitch Ratings has upgraded four tranches and affirmed two tranches
of AyT Caixa Galicia Empresas I, FTA, a securitisation of Spanish
SME loans originated and serviced by Caixa Galicia (now Caixa de
Aforros de Galicia, Vigo, Ourense e Pontevedra, Novacaixagalicia,
'BB+'/Stable/'B'), as follows:

   * Class A notes (ISIN ES0384955003): upgraded to 'AAAsf' from
     'AA+sf'; Outlook Stable

   * Class B notes (ISIN ES0384955011): upgraded to 'Asf' from
     'BBB+sf'; Outlook Stable

   * Class C notes (ISIN ES0384955029): upgraded to 'BBBsf' from
     'BB+sf'; Outlook revised to Stable from Negative

   * Class D notes (ISIN ES0384955037): upgraded to 'Bsf' from
     'CCCsf'; assigned Outlook Stable

   * Class E1 notes (ISIN ES0384955045): affirmed at 'Csf';
     assigned 'RR3'

   * Class E2 notes (ISIN ES0384955052): affirmed at 'Csf';
     assigned 'RR3'

The upgrades of the notes' ratings reflect the credit enhancement
(CE) available for the notes, which is commensurate with the
rating stresses that Fitch assumes for this portfolio.  Fitch
acknowledges a historically volatile performance, although this
has been better than the country benchmark.  90d+ arrears
currently represent 1.7% of the current portfolio balance. The CE
for classes A, B, C, and D is 36.37%, 24.02%, 15.97%, and 8.70%,
respectively, while the estimated mean rating loss rate for this
portfolio is 5.8%, assuming the performance benchmark for Spain.

Fitch expects classes E1 and E2, which are pari-passu, to default
as they are the first loss piece in the capital structure of this
transaction. Fitch has estimated "good recovery prospects given
default" for these classes and hence assigned a Recovery Rating of
'RR3'.

Fitch has assigned an Issuer Report Grade (IRG) of two stars to
this transaction. This action follows an appeal by Ahorro y
Titulizacion, SGFT, SA on the basis of pending improvements to
quality control and reporting.  The agency expects AyT to complete
the improvements to their reporting by October 1, 2011.  If the
improvements are not implemented in a timely manner, Fitch will
likely revert to the initial committee decision. Fitch's IRGs
refer only to reporting standards relative to public information.

The current portfolio information provided to Fitch for the
analysis was missing essential fields.  Fitch has overcome the
data issues by cross-linking the complete original portfolio data
and information provided by AyT in the closing collateral
datatape.  Therefore, the agency was able to complete the review
analysis that resulted in the rating actions listed above by
simulating the various rating stresses within its Portfolio Credit
Model (PCM).  AyT is currently improving its IT systems in order
to produce regular portfolio datatapes that will be compliant with
the requirements set by the European Central Bank, which will
include the currently missing information.

Fitch does not believe that the exposure to Novacaixagalicia as
servicer represents a material payment interruption risk for this
transaction because of the existence of a generous servicer
commingling deposit, the short holding period and the large size
of the reserve fund (ie fully funded at EUR29.3 million).

Novacaixagalicia holds collections from the assets for one day
before transferring them into the fund's treasury account held at
Confederacion Espanola de Cajas de Ahorros where the reserve fund
and the servicer deposit are also held.  The servicer deposit
would become part of available funds upon a servicer payment
interruption, and is sized to cover for 1.5 times the sum of all
installments of the loans, plus 1.5 months' worth of principal
prepayments at a 10% yearly CPR.


AYT COLATERALES: Fitch Affirms 'Bsf' Rating on Class D Notes
------------------------------------------------------------
Fitch Ratings has affirmed all tranches of Serie Caja Granada I,
a securitization of Spanish SME loans issued under the AyT
Colaterales Global Empresas, FTA programme.  Serie Caja Granada I
is originated and serviced by Caja General de Ahorros de Granada
(now Banco Mare Nostrum S.A., 'BBB+'/Stable/'F2'). The rating
actions are as follows.

   * Class A notes (ISIN ES0312214127): affirmed at 'AAAsf';
     Outlook Stable

   * Class B notes (ISIN ES0312214135): affirmed at 'Asf'; Outlook
     Stable

   * Class C notes (ISIN ES0312214143): affirmed at 'BBB-sf';
     Outlook Negative

   * Class D notes (ISIN ES0312214150): affirmed at 'Bsf'; Outlook
     Negative

The affirmations of the notes' ratings reflect the credit
enhancement (CE) available for the notes as well as adequate
counterparty risk mitigants, specially the servicer commingling
deposit.  The CE is commensurate with the rating stresses that
Fitch assumes for this portfolio.  Fitch acknowledges the
historically volatile performance, which has been in line with the
country benchmark.  90d+ arrears currently represent 2.9% of the
current portfolio balance. The CE for classes A, B, C, and D is
46.1%, 29.5%, 20.0%, and 10.5%, respectively, while the estimated
mean rating loss rate for this portfolio is 6.5%, assuming the
performance benchmark for Spain.

The Negative Outlook on classes C and D reflects the low
recoveries realized to date for this transaction and the
uncertainty posed by an impaired real estate market.  Should
recoveries continue to be low after reasonable time is allowed for
recovery and foreclosure processes to produce results, the reserve
fund (RF) could be reduced further and these tranches would be
vulnerable to obligor concentration and tail risk.  This could
trigger negative rating actions. However, Fitch notes that
recovery processes are taking longer in the current macroeconomic
environment and the agency expects recoveries to pick up for this
transaction in the future.

Fitch has assigned an Issuer Report Grade (IRG) of two stars to
this transaction.  This action follows an appeal by Ahorro y
Titulizacion, SGFT, SA (AyT, the management company or gestora)
on the basis of pending improvements to quality control and
reporting.  The agency expects AyT to complete the improvements to
their reporting by October 1, 2011.  If the improvements are not
implemented in a timely manner, Fitch will likely revert to the
initial committee decision.  Fitch's IRGs refer only to reporting
standards relative to public information.

The current portfolio information provided to Fitch for the
analysis was missing essential fields.  Fitch has overcome the
data issues by cross-linking the complete original portfolio data
and information provided by AyT in the closing collateral
datatape.  Therefore, the agency was able to complete the review
analysis that resulted in the rating actions listed above by
simulating the various rating stresses within its Portfolio Credit
Model (PCM).  AyT is currently improving its IT systems in order
to produce regular portfolio datatapes that will be compliant with
the requirements set by the European Central Bank, which will
include the currently missing information.

Fitch does not believe that the exposure to Banco Mare Nostrum as
servicer represents a material payment interruption risk for this
transaction because of the short holding period, and an RF that
will act as an excess spread trap.  Banco Mare Nostrum holds
collections from the assets for one day before transferring them
into the Treasury Account of the fund held at Confederacion
Espanola de Cajas de Ahorros where the reserve fund is held.


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


* SWEDEN: Corporate Failures Down 4% Year-on-Year in July 2011
--------------------------------------------------------------
According to SeeNews, data by business and credit information
agency Upplysningscentralen (UC) AB showed that the number of
corporate failures in Sweden went down 4% year-on-year to 410 in
July 2011.

In the first seven months of 2011, the bankruptcy count declined
by 4% year-on-year to 3,579, SeeNews discloses.  SeeNews says most
sectors registered good development, led by transport, which saw
the biggest drop of 23%.  At the same time, the number of failures
increased by 10% in the construction industry and by 5% in the
retail trade sector, SeeNews notes.

The agency confirmed its guidance for a 5% annual drop in the
bankruptcy count for 2011, SeeNews relates.


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


CORPORATE INVESTMENT: Fitch Assigns 'B' LT Foreign Currency IDR
---------------------------------------------------------------
Fitch Ratings has assigned Ukraine-based PJSC Corporate Investment
Bank Credit Agricole a Long-term foreign currency Issuer Default
Rating of 'B' with a Positive Outlook.

The ratings are as follows:

   * Long-term foreign currency IDR: assigned 'B' with a Positive
     Outlook

   * Local Currency Long-term IDR: assigned 'B+' with a Positive
     Outlook

   * Short-term foreign and local currency IDRs: assigned 'B'
     Support Rating: '4'

   * National Long-term rating: assigned 'AAA(ukr)' with a Stable
     Outlook

CIBCA's ratings are underpinned by the potential support the bank
may receive from its sole shareholder Credit Agricole S.A. (CA,
rated 'AA-'/Stable), which owns the bank through its subsidiary,
France-based Credit Agricole Corporate Investment Bank ('AA-
'/Stable).  However, Ukraine's Country Ceiling ('B'), which
reflects transfer and convertibility risks, limits the extent to
which support from CA can be factored into CIBCA's Long-term
foreign currency IDR, while its Long-term local currency IDR of
'B+' also takes into account Ukrainian country risks.

In Fitch's view, CA would likely have a high propensity to support
CIBCA, if required, given the full ownership, the brand
association, CIBCA's close integration with its parent, its small
size and the track record of assistance to date.

CIBCA's operations, risk management systems and controls are fully
integrated with those of its parent, with the latter setting
limits and procedures for its Ukrainian subsidiary.  CIBCA's
primary business focus is on servicing multinational clients
operating in Ukraine which are global clients of the parent bank.
At end-Q111, these clients represented 60% of the bank's lending
and 57% of the funding base.  Most outstanding loans were covered
by guarantees from CA.

The Positive Outlook reflects that on the sovereign. Any movement
in Ukraine's Country Ceiling would likely have implications for
the bank's IDRs.

CIBCA, founded in 1993, was the 39th-largest Ukrainian bank with a
small (below 1%) market share by total assets at end-H111.


PRIVATBANK PJSC: Fitch Affirms LT Issuer Default Rating at 'B'
--------------------------------------------------------------
Fitch Ratings has affirmed Ukraine-based PJSC CB PRIVATBANK's
(Privat) Long-term Issuer Default Rating (IDR) at 'B' with a
Stable Outlook.

Privat's ratings reflect high levels of credit risk as a result of
recent rapid growth in Ukraine's still-challenging operating
environment, high borrower and industry concentrations,
potentially sizeable related-party business and reduced
profitability. The ratings also reflect the bank's broad domestic
franchise, stabilizing trends in reported asset quality metrics
and moderate refinancing risks.

Privat's loan growth was rapid during 2010-H111, driven by
exposures to the oil trading and metallurgy sectors, where
Privat's owners have business interests. Exposure to the oil
trading sector is now particularly high (UAH38 billion or 34% of
loans) and growing rapidly, up by 43% in 2010 and a further 16% in
H111. This also kept the borrower concentrations high: at end-
Q111, exposure to the top 20 borrowers accounted for a reported
34% of loans or 242% of equity, although in Fitch's view
concentrations could be significantly higher given possible links
between borrowers in the oil trading sector.

Fitch remains concerned about the limited transparency of the
bank's oil trading exposures, making it difficult to assess the
nature of relationships between the borrowers, the adequacy of the
financing received relative to the business volumes of the
companies, how the borrowers are using the funds, and whether
loans are being serviced by business revenues or being refinanced
by additional bank borrowing. Reported related-party lending was
significant (78% of equity at end-2010, IFRS accounts) but in
Fitch's view, could potentially be significantly higher.

Impaired loans (non-performing loans (NPLs) and restructured
loans) were around 6% and 10%, respectively, of loans at end-Q111.
This is well below sector average levels, but the ratios for the
retail portfolio (22% and 4%) were closer to those of the system,
while those of the corporate book were reduced by reportedly low
arrears in the oil trading exposures.. Loan loss reserves/impaired
loans coverage was moderate at 83% at end-Q111, although markedly
stronger than the sector average. The bank's loan loss absorption
capacity afforded by its capital position may prove insufficient
if loan impairments increase, for example as a result of a limited
number of defaults in the bank's concentrated corporate portfolio.

Pre-impairment profitability decreased markedly in 2010, with a
similar trend in H111, constrained by the high cost of the rapidly
growing retail deposit base and lower lending rates (in particular
on the oil trading exposures). However, pre-impairment performance
still compared favorably to most peers. Risk costs also remained
high, reflecting the still volatile performance of borrowers in
Ukraine, putting pressure on the bottom line.

Privat's regulatory capital ratio of 10.47% at end-H111 was
approaching the required minimum of 10%. A new capital injection
is expected in August 2011, boosting the bank's end-H111 equity
base by around 27% (local GAAP). Basel 1 capital ratios were
somewhat higher at end-Q111: 12.7% (Tier 1) and 14.2% (total).

Liquidity has been supported by inflows of retail deposits (up by
51% in 2010 and by 19% in H111, local GAAP), but the cushion of
highly liquid assets (cash and equivalents, balances with the NBU
excluding mandatory reserves, net interbank positions up to 30
days) represented a moderate 13% coverage of client funds at end-
4M11. Refinancing requirements appear manageable in the near term,
including a US$500 million Eurobond repayment in February 2012 (3%
of end-H111 liabilities).

Fitch has also affirmed Privat's senior unsecured debt's Long-term
rating at 'B' and Recovery Rating at 'RR4'. At the same time,
Fitch notes that at end-H111, retail deposits, which rank senior
to other creditors under Ukrainian law, accounted for a high 55%
of Privat's non-equity funding. This represents significant
subordination for other senior creditors, including bondholders,
which could limit recoveries for those creditors in a default
scenario. In Fitch's view, while this risk is not presently
sufficient to warrant a Recovery Rating of below 'RR4' for the
senior unsecured debt, any significant further increase in the
proportion of retail funding in Privat's liabilities and/or
increased concerns about the nature of the oil trading exposures
in the loan book, could lead to a lowering of the Recovery Rating
and downgrade of the notes' Long-term rating.

Further upside potential for the ratings is currently limited by
the challenging operating environment and the weaknesses in
Privat's credit profile. A reduction in borrower and sector
concentrations, as well as stronger internal capital generation
whould be positive for the bank's profile. However, Fitch has been
informed that the level of exposure to the oil trading sector is
likely to remain broadly unchanged at least until end-2011. A
further tightening of the bank's capital position, a liquidity
shortfall or rising concerns over the level and quality of
related-party exposures could result in a downgrade.

At end-H111, Privat was the largest bank in Ukraine, with market
shares in total assets and retail deposits of 13% and 22%,
respectively. Gennady Bogolubov and Igor Kolomojsky, who also have
extensive industrial assets, directly own around 90% of the bank.

The rating actions are:

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

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

   -- Short-term IDR: affirmed at 'B'

   -- Viability Rating: affirmed at 'b'

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

   -- Support Rating: affirmed at '5'

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


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


CHOICES CARE: 'No Effect on Bute' Following Administration
----------------------------------------------------------
The Buteman reports that Bute employees and clients of the
troubled Choices Care group will not be affected after the firm
went into administration.

As reported in the Troubled Company Reporter on Aug. 9, 2011,
Edinburgh Evening News said that Choices Care has been partly sold
off while administrators attempt to find a buyer for about two-
thirds of the firm's operations.

The group's supported living division, which provides services to
several clients on Bute, administered locally from an office at
Bute Business Park in Rothesay, has been sold to Mears Care
Scotland Ltd, and a spokesperson told us it was business as usual
for both clients and staff as a result, according to The Buteman.

"Staff has been transferred, and the service is being maintained
as before," an unnamed Mears spokesperson told The Buteman.
"Mears has operated in Argyll and Bute for a number of years in
the domiciliary and elderly care sectors, and we already have
around one hundred staff in the area.  The main concern for us is
reassuring family members that they won't see any difference in
the services provided to clients", the spokesperson added.

Choices Care is a major care provider in the Lothians.  It works
with people across the south of Scotland and north of England.


COLT GROUP: Moody's Affirms 'Ba3' CFR; Outlook Changed to Stable
----------------------------------------------------------------
Moody's Investors Service has affirmed Colt Group SA's Ba3
corporate family (CFR) and probability-of-default (PDR) ratings
and has changed the ratings outlook of Colt to stable from
positive.

Moody's decision to change Colt's outlook to stable is based on:
(i) the weaker than expected operating performance of the company
with recovery in top-line likely only towards the end of 2011;
(ii) the negative free cash flow generation during H1 2011
resulting from increased capex and temporary working capital
outflows; and (iii) the lack of clarity over the company's medium-
term capital structure and on its shareholder remuneration policy.

After registering a decline of -2.4% in 2010 over 2009, Colt's
revenues fell by -3.5% (year-on-year) in H1 2011. The decreasing
voice revenues (-9% in 2010; -11% in H12011) which were in
particular negatively impacted by the 50% cut in mobile
termination rates introduced in Germany at the end of 2010, have
been fuelling the overall revenue declines. Against deteriorating
voice revenues, Colt recorded only modest revenue growth in its
Data and Managed Services business. Data revenues grew only by 1%
in H12011 and Managed Services improved only marginally by 4.3%
due to company's planned exit of lower margin co-location
services. While macro-economic conditions in Europe remain
challenging, Moody's notes that Colt is expecting incremental
growth only in the latter part of 2011.

In contrast, Colt's EBITDA margins have remained largely stable,
supported by an increasing proportion of higher-margin revenue
from the Data and Managed Services division and efficient cost
control. The company reported steady EBITDA margin in H1 2011 of
20.5% (compared to 19.9% in H12010). Going forward, Moody's
expects Colt's EBITDA margin to remain supported by the gradually
improving revenue mix for the company.

Moody's notes that despite the pressure on revenues, Colt has been
investing into the business to position it for future growth
opportunities. The company is working towards repositioning the
Colt brand with a view to become Europe's leading information
delivery platform via being an integrated computing and network
service provider. In H1 2011 Colt has (i) largely completed its
business re-organization ; (ii) continued investing in its modular
data centre program; (iii) made investments in its internal IT
systems and processes to support cloud services as well as in
network extensions to high bandwidth usage sites such as data
centers. While Moody's would expect these investments to enhance
the revenue growth potential at Colt over the medium term, our
stable ratings outlook reflects Colt's still lagging recovery on
revenues in the backdrop of a challenging economic environment.

The increased investments into the business led to a significantly
higher capex requirement for Colt in H1 2010. The company reported
a year-on-year increase of 47.2% in capex to EUR152.6 million in
H1 2011. The cash outflows on capex in H1 2011 combined with a
EUR56.6 million working capital outflows (excluding outflows
towards other provisions) and EUR13.3 million of cash payments
towards company's restructuring program resulted in negative free
cash flow generation (as reported by Colt) of EUR68.8 million.
While Moody's would expect the working capital outflows to
normalize in H2 2011, the company's capex in 2011 is expected to
be higher than 2010 level of EUR232 million. This is likely to
result in constrained free cash flow generation for Colt in 2011,
in Moody's opinion. The agency notes that Colt is currently
continuing to seek property to support its data centre business
which may lead to increased capex over the short to medium term,
depending on the availability of suitable sites. As the company
focuses on expanding its data centre business, its capex profile
is likely to become more front-loaded and to an extent less
success based in Moody's opinion.

Colt had EUR231 million worth of cash and cash equivalents
(including deposits classified as current asset investments) as of
June 30, 2011. Moody's expects this, together with internally
generated cash flows, to provide the company with sufficient
capacity to meet its current operational needs. However, in
Moody's opinion, Colt may need to arrange for appropriate funding
based on its medium-term growth investment requirements (including
additional capex and/or add-on acquisitions).

At December 31 2010, Colt had no financial debt outstanding and
its Gross debt/EBITDA ratio (as calculated by Moody's) of 1.8x
reflected Moody's adjustment for operating leases. The ratings
assume that the company's capital structure will incorporate some
financial debt over time.

The ratings are likely to be negatively impacted if Colt's FCF
generation, EBITDA margin growth or revenue growth from its Data
and Managed Services business turns materially negative on a
sustained basis. Pressure would be exerted on the ratings if the
company's Gross Debt/ EBITDA (as calculated by Moody's) increased
towards 3.5x.

Positive ratings pressure could develop: (i) as the returns to
positive overall organic revenue growth and continues to generate
good EBITDA margins supported by its growing Data and Managed
Services business; (ii) exhibits a commitment to maintain its
gross leverage solidly below 2.5x (as adjusted by Moody's); and
(iii) continues to make investments in growing its Managed
Services business in particular, while remaining focused on FCF
generation (as defined by Moody's).

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

Colt Group S.A. is one of the leading alternative telecoms
providers in the UK and Europe, offering high-bandwidth data,
voice business communications and integrated IT managed solutions
to businesses and governmental organizations. In 2010, the company
generated revenues of EUR1.58 billion and reported EBITDA of
EUR330.2 million.


ESSENDEN PLC: Unveils Proposed Restructuring Plan
-------------------------------------------------
Essenden PLC has unveiled its proposed restructuring plan.

Essenden's bowling business is the second largest bowling
operation in the UK with an approximate 20% share of the market
and 37 sites.  The bowling industry, including Essenden, has
experienced a significant and prolonged period of like for like
sales decline exacerbated by a very challenging trading
environment during the recession of the last three years.  This
level of sales performance, along with the performance of a number
of loss-making sites, some of which were newly acquired or opened
prior to 2009, has put pressure on the cashflow of the Group.

From October 2009, with a new management team appointed, a long
term strategic turnaround for the bowling business was commenced.
The Directors quickly identified the need to exit from certain
loss-making sites and new site commitments.  Two site commitments
(Widnes and St Helens) and one loss-making site (Preston) have
been successfully exited to date.

Over the past 18 months, radical steps have been taken to
restructure the business.  A turnaround plan has been implemented
against a period of industry wide sales decline with much
operational success.  A more efficient corporate structure for the
business, a revitalized Board of Directors and a total management
overhaul was implemented resulting in headcount reductions at both
site level and support office.  In total, six senior operational
managers were changed.  A significant number of new contracts were
also renegotiated on better terms.  Trials of new ancillary
products to broaden the product offering and make it more
attractive to a wider customer base have taken place.  By the
close of the financial year 2010 annualized operational savings of
GBP4.0 million had been achieved and a more modern product put in
place in the better performing sites.

However, in 2011, there has been a like for like sales decline of
8.8% for the 26 weeks to July 3, 2011.  The Directors continue to
make efforts to address this trend and turn around the business.
A further GBP1.1 million of potential annualized cost reductions
have been identified.  Other measures including site disposals and
reduced capital expenditure have been made to alleviate the
pressures on working capital.  Further operational initiatives to
improve the customer service proposition and improve the
efficiency of the call center and Web site were introduced against
a challenging consumer backdrop.

In the Company's announcement of March 31, 2011, The Board of
Directors of Essenden announced that it had "retained advisers to
investigate a range of restructuring options for the trading
subsidiary ("Tenpin Limited"), and the intent of the Board was to
implement such a restructuring as soon as practicable".

The Board of Directors believes that there are limited further
operational actions or cost savings that can be achieved without
affecting the overall product offering to customers and thereby
impairing further the performance of the whole Group.  Therefore,
having taken professional advice and having reviewed its entire
site portfolio, the Directors believe that to give the Group a
viable future it is necessary to propose a Company Voluntary
Agreement ("CVA") in respect of 5 of its 37 bowling sites.  Such a
step would reduce the significant cash drain on the business from
those 5 sites, assist in preventing a likely bank covenant breach
in September 2011 and facilitate discussions to extend the Group's
revolving credit facility beyond June 2012 (its current maturity
date).

Without implementation of the CVA, Tenpin Limited and potentially
other members of the Group are likely to be placed into
administration or liquidation.  It is estimated that the Group
will be in breach under its Group facilities agreement with such a
breach constituting an event of default and the cash position of
the Group will be under further pressure which may in turn limit
the Group's ability to renegotiate and extend its banking
facilities beyond the current maturity date of June 2012.  A CVA
is therefore necessary to ensure a viable future for the Group and
all its stakeholders.

                    Highlights of the Proposal

    * The directors of Tenpin Limited, supported by the Board of
      Directors of Essenden have proposed the terms of the CVA in
      order to restore the viability of the Group's business model
      and remove the cash drain associated with 5 of its sites
      (the "CVA Proposal").

    * A Company Voluntary Arrangement is a formal procedure under
      the Insolvency Act 1986, which enables a company to agree
      with its unsecured creditors a composition in satisfaction
      of its debts or a scheme of arrangement of its affairs which
      can determine how it debts should be paid and in what
      proportions.

    * The CVA Proposal will enable the Group to carry out a
      fundamental restructuring of its property portfolio, which
      the Board believes must be carried out as part of the
      Group's turnaround plan.

    * The Directors of Essenden believe that the CVA Proposal
      demonstrably gives the landlords of the compromised bowling
      sites a far greater estimated return than would be the case
      if Tenpin Limited, is placed in administration.

    * If voted in favor (and not successfully challenged), the CVA
      proposal will, in brief:

       -- Compromise the claims of the landlords of 5 bowling
          sites of which Tenpin Limited, is the tenant and enable
          closure of those sites by 29 February 2012.

       -- Enable the landlords of those compromised to share in a
          total aggregate fund of approx GBP972,000 and for Tenpin
          Limited to continue to pay rates on the Compromised
          Sites whilst unoccupied or until March 2016.

       -- Compromise certain guarantees given by Georgica Ltd, in
          respect of 2 bowling sites of which Tenpin Limited is
          the tenant.

       -- Enable the compromised landlords to share in a fund of
          GBP325,000 in the event that Essenden achieves GBP5.0
          million of EBITDA in 2013

       -- The detailed terms of the proposal, including details of
          the creditor and shareholder meetings, are contained in
          the CVA itself.

       -- To become effective, the CVA requires the approval of
          over 75% by value of Tenpin Limited's creditors present
          in person or by proxy and voting at a meeting on the
          resolution to approve the relevant company voluntary
          arrangement.  A company voluntary arrangement also
          requires the approval of more than 50% in value of each
          company's members.

    * Additionally, the Company's bankers (as lender and secured
      creditor under the Group's facilities agreement) has agreed
      that the CVA will not breach the Group's facilities
      agreement.

    * If the requisite voting majorities are not achieved at the
      relevant meetings or, if the CVA is approved but is subject
      to a successful challenge during the statutorily prescribed
      challenge period, it is likely that Tenpin Limited, and
      potentially other members of the Group will be placed into
      administration or liquidation.

    * Essenden also announces that it has exchanged and completed
      on the sale of three freehold properties in its portfolio
      (current and former Rileys Snooker Clubs at Grays,
      Peterborough and Sheffield) that were owned by Georgica
      Holdings Limited. In addition unconditional contracts have
      been exchanged in respect of the disposal of a fourth site
      at Reading and this transaction is due to complete on
      August 15, 2011.  The net cash proceeds from these 4
      disposals are in aggregate approximately GBP1.425 million
      and they have a net book value of approximately GBP1.05
      million in the Group's latest accounts.  For the 53 week
      period ended  January 2, 2011, these 4 properties generated
      rentals of GBP88,000. The proceeds will be utilized to pay
      down the Group facilities agreement.  Negotiations are
      ongoing with regards to the disposal of the final freehold
      site at Lewisham.

    * Finally, Essenden announces that it has reached a bilateral
      arrangement with the landlord, of a new site commitment at
      Halifax terminating the Group's occupation of the site and
      releasing the Group from any obligations or liabilities
      thereunder.

Nick Basing, CEO of Essenden, commented: "Against a very
challenging backdrop, the new team have implemented radical
change.  However, the current trading climate and legacy issues
have combined to leave us with no choice but to exit a number of
sites to ensure the viability of the Group.  Following this
action, Essenden will be on a firmer footing."


HOLIDAYS 4 UK: Bankruptcy Hits Turkish Hoteliers
------------------------------------------------
Anatolia News Agency reports that the Turkish Culture & Tourism
Ministry's office in the western province of Mugla said the
bankruptcy of Britain-based Holidays 4 UK is victimizing Turkish
hoteliers.

"Tourists are not the victims of this bankruptcy," Mugla Culture &
Tourism Director Kamil Ozer told the Anatolia news agency.

Anatolia relates that GETOB Chairman Ilhan Acikgoz said the
company had brought 43,000 tourists to Turkey so far, and it had
booked for 40,000 people at Turkish hotels.

"Air Transportation Organizers' Licensing [ATOL] will meet some of
the losses due to the company's bankruptcy, however ATOL will not
pay outdated receivables," Anatolia quotes Mr. Acikgoz as saying.

Mr. Acikgoz also said Turkish hoteliers would have a financial
loss between GBP50 million and GBP100 million due to the
bankruptcy, Anatolia notes.

"The only victims of this bankruptcy are Turkish hoteliers,"
Mr. Acikgoz, as cited by Anatolia, said.

Some 6,000 customers of the British tour operator are spending
their vacation in Mugla's Marmaris town, an international tourism
destination, Anatolia discloses.

After Brighton-based Holidays 4 UK company's bankruptcy, travel
company Abta announced that the British tour operator actually had
12,800 customers in Turkey, Anatolia recounts.

The Brighton-based Holidays4u, which traded under the names
Holidays 4U and Aegean Flights, sold packages and flights to
Turkey.


IZODIA: Investors Seek to Recover GBP5.3 Million
------------------------------------------------
Michael Stothard at The Financial Times reports that Izodia, the
multibillion-pound dotcom company at the center of one of the City
of London's longest-running corporate scandals, has postponed its
own liquidation in the hope that it can recover some of the GBP5.3
million (US$8.7 million) it is still owed from the case.

The company, which was looted by Gerald Smith and his company Orb
in 2002, held its annual meeting on Monday, at which shareholders
voted to pay themselves a dividend of 20p a share, but
unexpectedly held off from winding up Izodia for good, the FT
relates.

Investors are hoping that the GBP5.3 million owed by Mr. Smith
could still lead to a sizeable windfall to compensate them for
nearly a decade of trouble and legal wranglings, the FT says.

According to the FT, if realized, this would equate to 13p a
share, in addition to the 50p a share that has so far been
distributed to shareholders.  Izodia shares have not traded since
December 2002, when they stood at about 44p, the FT notes.

It has now been five years since the jailing for theft of
Mr. Smith, prompting some to question whether the money will ever
be recovered, the FT states.

KPMG is leading the efforts to recover the funds, through its risk
and compliance department, the FT discloses.

Shareholders at the meeting were mostly resigned to not recovering
the GBP5.3 million, and getting back only 50p a share from their
investment, the FT says.

Mr. Smith's involvement with the company began in 2002 when he
used his investment company, Orb, to acquire 30% of its shares and
stack the board in his favor, the FT recounts.

Mr. Smith then sanctioned a scheme to use Izodia's cash to
illicitly shore up Orb's balance sheet and fund his own lavish
lifestyle, the FT discloses.

According to the FT, an estimated GBP35 million was taken from the
company illegally in order to help Mr. Smith meet a potentially
crippling GBP17.2 million interest payment due to Morgan Stanley
on a GBP600 million loan he had with the investment bank.

Izodia is a London-listed software company.  It had previously
been known as Infobank.


* UK: Corporate Insolvencies Down in Second Quarter 2011
--------------------------------------------------------
The number of troubled companies falling into insolvency in
England and Wales fell in the second quarter of 2011, with
administrations down 11.1% to 695 in Q2 2011 (Q1 2011: 782),
according to statistics released by the Government's Insolvency
Service.  This is a 10.6% decrease on the same period last year
(Q2 2010: 777).

"While the announcement could be read as positive news, corporate
insolvencies historically lag economic performance and we are yet
to see the full impact of Government austerity cuts and the weaker
than forecast economic performance," commented David Dunckley,
Partner at Grant Thornton's Recovery and Reorganisation practice.

"Real disposable income of ordinary households is being squeezed
by a combination of inflation, tax rises and a weak pound.  This
comes at the same time as consumers, worried about their
employment prospects, repay personal debt at record levels," added
Mr. Dunckley.

"With economic growth forecasts predicted to be downgraded further
it appears unlikely that UK corporates will experience any let-up
soon," continued Mr. Dunckley.

"Retail, leisure and travel businesses, often the first victims of
a downturn in consumer expenditure, are suffering.  What is of
interest is the effect of the austerity measures on charities,
professional services firms and business support services,"
Mr. Dunckley pointed out.

Meanwhile, the number of companies entering liquidation saw an
increase of 2.7% to 4,233 in Q2 2011 (Q4 2010: 4,121).  The latest
figures reflect a 4.4% increase on the same quarter a year earlier
(Q2 2010: 4,054).

"The number of administrations is a more accurate barometer of the
health of the UK economy than liquidations.  Typically large
employers are first placed into administration when declared
insolvent.  Additionally, most companies entering administration
are liquidated at a later date, creating both a lag and double
counting effect that distorts the liquidation statistics,"
concluded Mr. Dunckley.

Grant Thornton UK LLP -- http://www.grant-thornton.co.uk-- is a
business and financial adviser with offices in 28 locations
nationwide.


* UK: Forced Corporate Liquidations Rise Nearly 20% in 2nd Quarter
------------------------------------------------------------------
Dow Jones' DBR Small Cap reports that forced liquidations of U.K.
companies rose sharply in the second quarter of 2011, according to
data published Friday, in a sign that some creditors' patience
with struggling firms may be wearing thin.


                            *********

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


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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.


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