TCREUR_Public/111005.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, October 5, 2011, Vol. 12, No. 197



A-TEC INDUSTRIES: Penta Investments Still Interested in Assets


DEXIA SA: Board Asks CEO to Fix "Structural Problems"

C Z E C H   R E P U B L I C

* CZECH REPUBLIC: Bankruptcies to Increase Further This Year


LIBERTY GLOBAL: Moody's Changes Outlook on 'Ba3' CFR
PROMISE XXS-2006-1: S&P Lowers Rating on Class F Notes to 'CCC-'
VAC HOLDING: S&P Raises Corporate Credit Rating to 'BB-'


EFG EUROBANK: Moody's Downgrades Covered Bonds Rating to 'B1'


ANGLO IRISH: Fitch Maintains Long-Term IDR at 'BB-'
ANGLO IRISH: Remaining Loans May Be Sold off Foreign Investor
CHECKMATE SECURITY: Unpaid Tax Bill Prompts Liquidation
H RITCHIE: Cash Flow Problems Prompt Administration
IRISH POST: Loot Owner Saves Newspaper from Liquidation


FERRETTI SPA: Lenders Explore Second Debt Restructuring
VENUS-1 FINANCE: Fitch Lowers Rating on Class E Notes to 'CCsf'


TMD FRICTION: S&P Puts 'B+' Corp. Credit Rating on Watch Positive


NEPTUNO CLO: Moody's Upgrades Ratings on Two Note Classes to 'B1'


* ROMANIA: ANAT to Propose Tour Operator Bankruptcy Bill


* SAKHA: Fitch Upgrades Long-Term Currency Ratings to 'BB+'

S L O V A K   R E P U B L I C

* SLOVAK REPUBLIC: Bankruptcies Expected to Reach 700 in 2011


CATALUNYACAIXA: Moody's Withdraws 'Ba1' Deposit Ratings


* UKRAINE: Cabinet Approves Five Unprofitable Mines' Liquidation

U N I T E D   K I N G D O M

ALEXON: Sun Capital Buys Firm Out of Administration, Saves Jobs
BROWNE SMITH: Collapse Leaves Youth Center Unfinished
FORDGATE COMM: Fitch Cuts Rating on GBP23.9-Mil. Notes to 'BBsf'
QUAYSIDE JOINERY: Adderstone Group Buys Firm Out of Liquidation
ULYSSES PLC: Fitch Downgrades Rating on Class E Notes to 'CCsf'


* EUROPE: German Economy Minister Proposes State Insolvency Rules
* EUROPE: Germany Approves Expansion of Euro-Area Rescue Fund



A-TEC INDUSTRIES: Penta Investments Still Interested in Assets
Lenka Ponikelska at Bloomberg News reports that Penta Investments
Ltd., a Czech and Slovak private equity group, remains
"interested" in assets of A-Tec Industries AG in case they are
sold by the administrator.

"We definitely want to stay in the game if there's a sale,"
Penta's spokesman Martin Danko said by phone in Prague on Monday,
according to Bloomberg.  "The sale conditions would determine what
assets specifically we would be interested in."

As reported by the Troubled Company Reporter-Europe on Oct. 4,
2011, Bloomberg News related that Wiener Boerse said in an
e-mailed statement A-Tec had its shares suspended indefinitely in
Vienna one day after the company's bankruptcy administrator
exercised its right to liquidate A-Tec's assets.  A-Tec said its
administrator Matthias Schmidt has exercised his right to start
liquidating the group after it failed to raise by Sept. 30 funds
required under a restructuring agreed with creditors last year,
Bloomberg disclosed.  A-Tec said in a statement on Sunday that the
administrator will seek to sell all of the company's assets and
pay out the proceeds exclusively to creditors, Bloomberg noted.
Mr. Schmidt told the Austrian Press Agency that he didn't receive
as of midnight on Sept. 30 the funds needed to pay creditors 47%
of their claims, the quota required under A-Tec's restructuring
plan, Bloomberg recounted.

On Oct. 22, 2010, the Troubled Company Reporter-Europe, citing
Bloomberg News, related that A-Tec sought court clearance to
reorganize debt after losing access to its line of credit because
of an Australian power-station project's financial difficulties.
A-Tec said in an Oct. 20 statement that it had filed for self-
administered reorganization proceedings at the Vienna Commercial
Court and appointed trustees for bondholders, Bloomberg
disclosed.  The company has a EUR798 million (US$1.11 billion)
revolving credit facility and EUR302 million in outstanding
bonds, according to Bloomberg data.

A-TEC Industries AG engages in plant construction, drive
technology, machine tools, and minerals and metals businesses in
Europe and internationally.  The company is based in Vienna,


DEXIA SA: Board Asks CEO to Fix "Structural Problems"
Fabio Benedetti-Valentini and John Martens at Bloomberg News
report that Dexia SA's board asked Chief Executive Officer
Pierre Mariani to take steps to fix the company's "structural

"In the current environment, the size of the non-strategic asset
portfolio impacts the group structurally," Dexia said in an e-
mailed statement on Tuesday, according to Bloomberg.  "This is why
the board of directors asked the CEO, in consultation with the
relevant governments and the supervisory authorities, to prepare
the necessary measures to resolve the structural problems."  The
bank didn't elaborate on its plans, Bloomberg notes.

According to Bloomberg, three people with knowledge of the talks
said the board met on Monday to discuss a possible breakup of the
company after the sovereign-debt crisis reduced its ability to
obtain funding.  Bloomberg relates that one of the people said
Dexia may set up a "bad bank" for its troubled assets, hive off
its French municipal loan book into a venture funded by state-
owned La Banque Postale and Caisse des Depots et Consignations,
and seek buyers for its Belgian bank, Denizbank AS (DENIZ) in
Turkey and its asset-management division.

The discussions are complex because Dexia is based in Brussels and
Paris, and has both governments as shareholders, Bloomberg states.

"Dexia is an extremely complicated file," Bloomberg quotes Benoit
Petrarque, an Amsterdam-based analyst at Kepler Capital Markets
with a "hold" rating on the shares, as saying.  "The fact that two
countries are involved, both under pressure from rating agencies,
makes it even more difficult.  We are not in 2008 anymore, when
you could just inject multibillions of cash."

Belgian Finance Minister Didier Reynders said the government will
support Dexia if necessary, Bloomberg notes.

State shareholders will support Dexia to allow it to roll out
measures "in an orderly manner and under the best conditions,"
Dexia, as cited by Bloomberg, said, without elaborating.

The shares plunged more than 10% on Monday as speculation grew
that the bank would seek a second bailout, Bloomberg relates.  A
breakup of Dexia would mark the clearest evidence yet that the
banking crisis spurred by Europe's sovereign debt woes is
spreading from the periphery to the core of the euro region,
Bloomberg says.  Dexia posted a EUR4 billion loss for the second
quarter, the biggest in its history, after writing down the value
of its Greek debt, Bloomberg discloses.

Dexia, once the world's biggest lender to municipalities, received
a EUR6 billion bailout from Belgium, France and its largest
shareholders in September 2008 following Lehman Brothers Holdings
Inc.'s collapse, Bloomberg recounts.

Moody's Investors Service put Dexia's three main operating units
on review for a downgrade on Monday on concern the lender was
struggling to fund itself, Bloomberg relates.

"Dexia has experienced further tightening in its access to market
funding," Moody's, as cited by Bloomberg, said in a statement.
"Dexia's collateral postings have increased due to substantial
market volatility."

                          About Dexia SA

Dexia SA -- is a Belgian bank specialized
in retail banking and local public finance.  The Bank offers a
range of banking services for individual customers, small and
medium-sized enterprises and institutional clients.  It has four
divisions: Asset Management, Personal Financial Services, Treasury
and Financial Markets, and Investor Services.  The Asset
Management division offers products ranging from traditional and
alternative funds to socially responsible investments.  The
Personal Financial Services segment focuses on banking and
insurance products, including both life and non-life insurance
products.  Through its Treasury and Financial Markets division,
Dexia is present in the capital markets and provides support to
the entire Group.  The Investor Services segment offers various
services to shareholders, such as fund and pension administration.
Through its subsidiaries, Dexia SA is active in over 30 countries,
including Belgium, Luxembourg, Slovakia, Turkey, France, Australia
and Japan.

C Z E C H   R E P U B L I C

* CZECH REPUBLIC: Bankruptcies to Increase Further This Year
CTK, citing a study of credit insurance company Euler Hermes,
reports that bankruptcy numbers in the Czech Republic will
increase further this year, to 1,870 cases from 1,684 cases last
year and 1,510 cases in 2009.

For 2012, the study forecasts a drop to 1,780 bankruptcies but
expects problems in some sectors, CTK notes.

"This concerns in particular construction but outlooks for steel
production are uncertain as well.  Competition is high also in the
sector of consumer goods and electronics where sales stagnate,"
CTK quotes Euler Hermes Cescob board member Hynek Rasocha as
saying.  "In 2008, when the crisis started to impact the Czech
Republic, paradoxically, the lowest number of bankruptcies since
the year 1996 was registered, namely only 1,110."


LIBERTY GLOBAL: Moody's Changes Outlook on 'Ba3' CFR
Moody's Investors Service has changed the rating outlook on
Liberty Global, Inc. Ba3 corporate family rating (CFR) and
probability-of-default rating (PDR) to stable from negative.


The change in rating outlook to stable is based on: (i) LGI's
continued solid operating performance in Western Europe; (ii) debt
reduction in Q2 2011 via retirement of its convertible bonds;
(iii) leverage at the end of H1 2011 trending well within LGI's
own well-defined leverage parameters of between 4.0x and 5.0x;
(iv) LGI's agreement in July 2011 regarding the disposal of Austar
United Communications ('Austar') to Foxtel for US$1.1 billion
which if completed should help LGI in maintaining its financial
flexibility post the conclusion of the acquisition of Kabel BW
Erste Beteiligungs GmbH ('KBW'; pending regulatory approvals in Q4

"The stable outlook reflects Moody's expectation that LGI will
continue to manage its future acquisitions and share buybacks
(US$400 million remaining out of the US$1 billion planned for
2011) such that it maintains its leverage comfortably within its
own leverage guidance as well as Moody's parameters defined for
Ba3 rating on a sustained basis" says, Gunjan Dixit, lead analyst
for LGI.

After registering revenue and operating cash flow ('OCF') growth
of 5% and 6% respectively in 2010 on a organic basis, LGI's
revenue and OCF grew by 4% and 7% respectively in H1 2011. Moody's
notes that revenue growth was largely supported by LGI's solid
operating performance, particularly in Western Europe, which
accounted for approximately 66% of the company's overall reported
revenues for the six months ended June 30, 2011. The company's
reported results for the period meaningfully benefited from the
acquisition of Unitymedia GmbH (Germany), which accounted for 14%
(at approximately US$695 million) of overall revenues in H12011.
LGI's reported OCF margin for Western Europe (excluding Telenet)
improved to 56% for H12011 and Telenet's margin remained solid at
52%. While Moody's acknowledges the ongoing macro-economic
volatility in the European region and the continued competition in
most of LGI's markets, going forward Moody's would expect LGI's
operating performance in its Western European markets such as
Germany, Netherlands and Belgium to remain on a positive growth
trend and the company to meet its guidance of mid single digit
consolidated revenue and OCF growth on an organic basis for 2011.

Over the last two years, LGI has taken significant steps in
managing its portfolio of assets via material acquisitions and
disposals. With the disposal of J:COM and Austar (subject to
regulatory approvals), and the acquisition of Unitymedia, Aster
and possibly KBW, LGI is concentrating its focus on Western
European markets which offer good growth potential over the medium
term. Moody's recognizes the strategic merits of KBW's
acquisition, (the parent of which Musketeer GmbH is rated B2,
stable outlook) for LGI, following Unitymedia's (rated B1/stable)
acquisition in early 2010. This acquisition gives LGI the
opportunity to strengthen its footprint further into Germany. KBW
offers good growth prospects and the company's EBITDA is expected
to benefit from some operational synergies overtime following full
integration of the acquisition by LGI. However, the acquisition
comes at a high leverage multiple (we expect Moody's Gross Debt/
EBITDA for Musketeer GmbH to trend towards 6.3x by the end of

Post announcing the acquisition of KBW, LGI has taken steps to
reduce its debt. During Q22011, the company retired the
UnitedGlobalCom convertible notes and substantially all of the LGI
convertible notes. As of June 30, 2011, LGI reported a gross debt
ratio of 4.6x (based on annualized Q2 2011 OCF), excluding the
US$1.2 billion Sumitomo loan backed by shares that LGI holds in
Sumitomo Corporation. Moody's notes that post Q2 2011, LGI's 50.2%
owned subsidiary, Telenet repaid approximately ?400 million
(US$581 million) in term loans under its credit facility. While
KBW's acquisition should lead to a slight negative impact on LGI's
consolidated leverage on a 2011 pro-forma basis (Moody's expects
LGI's reported leverage to remain below 5.0x - pro-forma the
acquisition), the completion of Austar disposal could lead to an
improvement in leverage on a net basis.

For the last twelve months ('LTM') ending June 30, 2011, Moody's
adjusted gross debt/EBITDA ratio for LGI (post adjusting debt for
cross currency swaps and also including the Sumitomo loan which
itself adds approximately 0.3x to leverage) stood at 5.8x. Moody's
ratio calculation for the LTM period ending 30 June 2011 is
relatively skewed as it is based on LGI's reported results, which
were affected by the negative FX translation effect associated
with the continued weakening of the U.S. dollar to the euro in the
last twelve months ending June 30, 2011. While 2011 year-end Gross
Debt/EBITDA (as calculated by Moody's) on a pro-forma basis is
likely to remain at the high end of the Ba3 rating category due to
KBW's acquisition, it could well be negatively impacted by pure Fx
translation effect associated with the EUR/US$ exchange rate. Such
Fx translation effect results from the fact that LGI reports its
results in US$ while it generates majority of its revenues in
Euros and Central and Eastern European currencies and also has a
significant portion of its debt denominated in Euros. Moody's
would consider any material impact on LGI's 2011 leverage from
such translation effect as unusual.

Moody's regards LGI's current liquidity position as solid. As of
June 30, 2011, LGI reported cash of US$3.4 billion. of which
US$0.9 billion was at the level of its parent and non-operating
subsidiaries. This was excluding the US$1.5 billion of restricted
cash set aside in connection with the KBW acquisition. Moody's
notes the FCF-generative nature of LGI's main subsidiaries and the
company's track record of up-streaming cash from them. In
addition, LGI calculates that it has approximately US$1.2 billion
in borrowing capacity under its credit facilities at its
subsidiaries. LGI and its subsidiaries have no material maturities
in the near term and out of LGI's total debt at
June 30, 2011, approximately 85% is due 2016 and beyond.

While an upgrade in the short term is unlikely, upward rating
pressure could develop over time as a result of a combination of:
(i) a continued strong operating performance; and (ii) a
consolidated leverage ratio (gross debt/EBITDA ratio as defined by
Moody's) sustained well below 4.5x (excluding any abnormal
currency translation effect on reported results).

Downward pressure on the rating could develop if: (i) LGI uses its
current financial flexibility to make material stock repurchases;
(ii) the company's consolidated adjusted debt/EBITDA ratio remains
materially above 5.5x (setting aside the impact of the Sumitomo
Collar loan) on a sustained basis (excluding any abnormal currency
translation effect on reported results); and/or (iii) there is a
marked deterioration in operating performance.

LGI is an international communications provider of video, voice
and broadband internet access services, with consolidated
broadband operations in 14 countries; primary operations are
located across Europe, Chile and Australia. In 2010, LGI generated
~US$9 billion in revenues and ~US$4 billion in Operating Cash Flow
(as reported by LGI).

The principal methodology used in rating Liberty Global, Inc was
the Global Cable Television Industry Methodology published in July
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.

LGI is an international communications provider of video, voice
and broadband internet access services, with consolidated
broadband operations in 14 countries; primary operations are
located across Europe, Chile and Australia. In 2010, LGI generated
~US$9 billion in revenues and ~US$4 billion in Operating Cash Flow
(as reported by LGI).

PROMISE XXS-2006-1: S&P Lowers Rating on Class F Notes to 'CCC-'
Standard & Poor's Ratings Services affirmed its credit rating on
PROMISE XXS-2006-1 GmbH's (Promise 2006) class A+ notes and
lowered its ratings on all other classes of notes.

Promise 2006 is a balance-sheet synthetic small and midsize
enterprise (SME) collateralized debt obligation (CLO) transaction
that closed in December 2006. Bank loans originated by Bayerische
Hypo- und Vereinsbank AG (now UniCredit Bank AG) and Bank Austria
Creditanstalt AG (now UniCredit Bank Austria AG) to German and
Austrian SMEs back the notes.

"The rating action follows our assessment of the largest obligor
concentration risk present in the transaction, as well as the
deterioration in the credit quality in the reference portfolio,"
S&P stated.

Since closing, the portfolio has amortized substantially and the
current reported pool factor is 35%. As a result of the pool
factor dropping below 57% in June 2010, the repayment of the notes
switched from a modified pro rata schedule to a sequential mode.
This has contributed to an increase in the available credit
enhancement for all classes of notes when compared with the
credit enhancement levels available at closing, with the exception
of the class F notes.

"We have, however, observed credit migration as well as an
increase in the amount of loans that have experienced a credit
event and are currently undergoing workout. According to our
analysis, the weighted-average portfolio rating based on UniCredit
Bank's internal scale mapped to Standard & Poor's scale is
currently 'B+'. In addition, as per the July 2011 report, loans
under workout amount to about EUR57.67 million, or 3.63% of the
current portfolio amount. According to the information provided to
us, aggregate realized losses from liquidated loans for which a
credit event has occurred are 0.49% of the current portfolio
balance. Realized losses have to date largely been cured using
excess spread with about 0.03% of residual losses being allocated
to the unrated class G and H notes on a pro rata basis, on the
August 2011 payment date. As the recovery process on defaulted
loans continues to be finalized, we expect further residual losses
to be allocated to the notes (continuing with
the allocation to the unrated class G and F notes on a pro rata
basis) over the coming payment dates," S&P related.

"In addition, our analysis focused on the obligor concentration
risk inherent in the transaction. According to our analysis, the
top 18.75% of the obligors account for about 80% of the portfolio
volume. In our analysis, we compared the level of credit
enhancement available to each class of notes with the amount of
expected net losses following a number of defaults among the
largest reference obligations. The number of obligor defaults we
assumed varied with the severity of the rating scenario -- i.e.,
it was set higher for investment-grade levels and lower for
speculative-grade levels. This was the main driver of the
downgrades of the class A and B notes," S&P stated.

"With respect to the classes C, D, and E notes, in our view,
credit deterioration and our assessment of obligor concentration
is such that there is insufficient credit enhancement available to
maintain their current ratings. Therefore, we have lowered the
ratings on the class C, D, and E notes," S&P noted.

In light of the number of loans for which a credit event has
occurred and that are currently undergoing workout, full repayment
of the class F notes depends on the recoveries achieved on these
loans. "We have therefore lowered the rating on the class F notes
to 'CCC- (sf)'," S&P said.

"The class A+ notes' remaining principal amount equals about 31%
of its original balance, as of the most recent payment date. It is
repaid senior to the other, junior classes of notes. We believe
the class A+ notes maintain a level of credit enhancement
commensurate with a 'AAA' rating. We have therefore affirmed our
'AAA (sf)' rating on the class A+ notes," S&P said.

Ratings List

Class               Rating
            To                 From

EUR595.75 Million Floating-Rate Credit-Linked Notes

Ratings Lowered

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

Rating Affirmed

A+          AAA (sf)

VAC HOLDING: S&P Raises Corporate Credit Rating to 'BB-'
Standard & Poor's Rating Services raised its long-term corporate
credit rating on Germany-based magnetic materials manufacturer VAC
Holding GmbH (VAC) to 'BB-' from 'B-', following its acquisition
by OM Group Inc. (BB-/Stable/--). "We removed the rating from
CreditWatch, where it was placed with positive implications on
July 8, 2011, after VAC's sole shareholder announced its
definitive agreement to sell VAC to OM Group for a consideration
of EUR700 million. Following this rating action, we subsequently
withdrew all our corporate credit and issue-level ratings on VAC
at the issuer's request. The rating action follows the repayment
of VAC's outstanding EUR55 million bond issued by VAC Finanzierung
GmbH (not rated) and about EUR95 million of loans issued by VAC KG
(not rated), both of which were funded by OM Group's recent
issuance of about US$900 million of senior secured credit
facilities," S&P stated.


EFG EUROBANK: Moody's Downgrades Covered Bonds Rating to 'B1'
Moody's Investors Service has downgraded to B1 from Ba3 (on review
for downgrade) the covered bonds issued by EFG Eurobank Ergasias
(Eurobank EFG) under its second covered bond program (EFG CB II),
which is governed by Greek law. This rating action follows Moody's
downgrade on September 23 of the long-term ratings of EFG to Caa2
from B3 and concludes the reviews of the above ratings initiated
on 27 July 2011.

The covered bonds issued by National Bank of Greece (NBG) under
its Global Covered Bond Programme (NBG CB I) remain on review for
downgrade; Moody's understands that NBG is planning to further
enhance the transaction by committing to a minimum
overcollateralization (OC) of 88.7%. Moody's expects to conclude
on the review, once the issuer has implemented the relevant
documentation changes.

The rating action does not affect the covered bonds issued by
Alpha Bank A.E. (Alpha) under its Direct Issuance Covered Bond
Programme (Alpha Direct Issuance CB), the covered bonds issued by
Eurobank EFG under its first covered bond program (EFG CB I) or
the covered bonds issued by NBG under its Covered Bond Programme
II (NBG CB II). These covered bonds are unaffected due to (i)
their extension periods of at least 10 years for principal
repayment; and (ii) their limited FX exposure.


The downgrade of EFG II CB was prompted by Moody's downgrade of
the relevant issuer ratings (see press releases: "Moody's
downgrades the ratings of Greek banks, concluding review initiated
July 25, 2011", dated September 23, 2011).

As most of the loans in the cover pool of EFG CB II are FX loans,
there is a material exposure to FX risk. Therefore, Moody's
decided to limit the rating these covered bonds can achieve to B1.
This rating level is consistent with the expected loss modelling
based on the contractual OC of 42.0%. The current OC in this
program is around 105%.

Generally, a downgrade of the issuer ratings negatively affects
the covered bonds through their impact on both the expected loss
method and the timely payment indicator (TPI) framework. In
addition, the rating of a sovereign has an effect on the maximum
rating covered bonds can achieve. A weaker sovereign rating is
likely to lead to deterioration of the future asset performance
and increases the likelihood of a transaction experiencing event


As the issuer's credit strength is incorporated into Moody's
expected loss assessment, any downgrade of the issuer's rating
will increase the expected loss on the covered bonds.

The cover pool losses are based on Moody's most recent modelling
and are an estimate of the losses Moody's currently models if the
relevant issuer defaults. Cover pool losses can be split between
market risk and collateral risk. Market risk measures losses as a
result of refinancing risk and risks related to interest-rate and
currency mismatches (these losses may also include certain legal
risks). Collateral risk measures losses resulting directly from
the credit quality of the assets in the cover pool. Collateral
risk is derived from the collateral score.

The cover pool losses of EFG CB II are 49.8%, with market risk of
32.1% and collateral risk of 17.7%. The collateral score for this
program is currently 26.4%.

For further details on cover pool losses, collateral risk, market
risk, collateral score and TPI Leeway across all covered bond
programs rated by Moody's please refer to "Moody's EMEA Covered
Bonds Monitoring Overview", published quarterly. These figures are
based on the latest data that has been analyzed by Moody's and are
subject to change over time. Quarterly these numbers are updated
in Performance Overview published by Moody's.

The current minimum over-collateralization levels for EFG CB II is
42.0% which Moody's views as "committed".


Given the Greek sovereign rating of Ca, Moody's does not currently
assign ratings higher than Ba3 to covered bonds issued by Greek
banks, which represents the lowest point in the TPI table. EFG CB
II have a TPI of "Improbable", which remains unchanged. Moody's
ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.

The rating assigned to the existing covered bonds is expected to
be assigned to all subsequent covered bonds issued by the issuers
under these programs and any future rating actions are expected to
affect all such covered bonds. If there are any exceptions to
this, Moody's will, in each case, publish details in a separate
press release.


Covered bond ratings are determined after applying a two-step
process: an expected loss analysis and a TPI framework analysis.

EXPECTED LOSS: Moody's determines a rating based on the expected
loss on the bond. The primary model used is Moody's Covered Bond
Model (COBOL) which determines expected loss as a function of the
issuer's probability of default, measured by the issuer's rating
and the stressed losses on the cover pool assets following issuer

TPI FRAMEWORK: Moody's assigns a "timely payment indicator" (TPI),
which indicates the likelihood that timely payment will be made to
covered bondholders following issuer default. The effect of the
TPI framework is to limit the covered bond rating to a certain
number of notches above the issuer's rating.


The robustness of a covered bond rating largely depends on the
credit strength of the issuer.

The TPI Leeway measures the number of notches by which the
issuer's rating may be downgraded before the covered bonds are
downgraded under the TPI framework. The ratings of all Greek
covered bonds are currently at Ba3 or lower, which represents the
lowest point in the TPI table. The covered bonds of issuers rated
below Caa2 are not subject to restrictions due to the TPI.

A multiple-notch downgrade of the covered bonds might occur in
certain limited circumstances. Some examples might be (i) a
sovereign downgrade negatively affecting both the issuer's senior
unsecured rating and the TPI; (ii) a multiple-notch downgrade of
the issuer; or (iii) a material reduction of the value of the
cover pool.


The principal methodology used in rating the issuer's covered
bonds is Moody's Rating Approach to Covered Bonds published in
March 2010.


ANGLO IRISH: Fitch Maintains Long-Term IDR at 'BB-'
Fitch Ratings has maintained Anglo Irish Bank Corporation's
(Anglo) Long- and Short-term Issuer Default Ratings (IDRs) on
Rating Watch Negative (RWN).

Anglo's Long- and Short-term IDRs are underpinned by a moderate
level of support from the Irish sovereign ('BBB+'/Negative), but
also reflect Anglo's reduced systemic importance, especially
following the transfer of customer deposits to Allied Irish Banks,
p.l.c. (AIB; 'BBB'/Negative/'F2') on February 24, 2011.

The RWN on Anglo's Long-term IDR reflects political risks
surrounding the issue of burden-sharing for senior unsecured
creditors as well as sovereign-related risks as reflected in the
Negative Outlook on the sovereign rating.

While not downplaying political risks that still surround the
issue of burden sharing by Anglo's senior creditors, Fitch
continues to believe that the Irish authorities are likely to
avoid a default or coercive burden sharing for Anglo's senior
unsecured, unguaranteed creditors.

The agency notes that the state has a strong presence on Anglo's
balance sheet, both on the liability side (capital, CBI funding
and guarantees) and on the asset side (primarily through about
EUR30 billion of promissory notes contributed as capital to Anglo
and Irish Nationwide Building Society (INBS)), while the amount of
senior unsecured unguaranteed debt that could be subject to
burden-sharing is small relative to total funding.

Direct exposure to the Irish sovereign accounts for about half of
Anglo's assets. The promissory note is now by far the largest
asset on its balance sheet.  Hence, any potential restructuring of
this asset would have significant implications for Anglo's
financial position.  The promissory note is used as collateral for
Central Bank of Ireland (CBI) funding which stood at EUR38.4
billion (or 78% of total funding) at end-H111. ECB funding
accounted for another EUR2.4 billion or 5% of total funding.

At end-Q311 Anglo had about EUR3.5 billion of senior unsecured
debt securities not benefitting from government guarantees
(including about EUR600 million of debt issued by INBS).  The next
large maturities are US$1 billion on November 2, 2011 and EUR1.25
billion on January 25, 2012 and about EUR1.1 billion in June 2012
after which there will be about EUR0.3 billion of securities

The rating actions are as follows:


  -- Long-term IDR: 'BB-'; RWN maintained
  -- Short-term IDR: 'B'; RWN maintained
  -- Support Rating: '3'; RWN maintained
  -- Support Rating Floor: 'BB-'; RWN maintained
  -- Short-term debt: 'B'; RWN maintained
  -- Senior unsecured: 'BB-'; RWN maintained
  -- Sovereign-guaranteed Long-term notes: affirmed at 'BBB+'
  -- Sovereign-guaranteed Short-term notes: affirmed at 'F2'
  -- Sovereign-guaranteed commercial paper: affirmed at 'F2''
  -- Sovereign-guaranteed Long-term deposits: affirmed at 'BBB+'
  -- Sovereign-guaranteed Short-term deposits: affirmed at 'F2'
  -- Sovereign-guaranteed Long-term interbank liabilities:
     affirmed at 'BBB+'
  -- Sovereign-guaranteed Short-term interbank liabilities:
     affirmed at 'F2'

Anglo Irish Mortgage Bank

  -- Long-term IDR: 'BB-'; RWN maintained
  -- Short-term IDR: 'B'; RWN maintained
  -- Support Rating: '3'; RWN maintained

ANGLO IRISH: Remaining Loans May Be Sold off Foreign Investor
Laura Noonan at Irish Independent reports that Anglo Irish Bank
Chairman Alan Dukes on Thursday said the bank's speeded-up closure
could see the institution's last loans grouped together with other
"loose ends" in the banking sector and sold off to a foreign

The comments came as he revealed that Anglo has already sold
"several hundred million" worth of UK loans and will ramp up
efforts to sell the EUR9.5 billion book after the imminent
disposal of the bank's US operations, Irish Independent relates.

Anglo was originally due to be wound up within 10 years, but
management has recently formed the view that the resolution could
be much faster, potentially within as little as three or four
years, Irish Independent notes.

Mr. Dukes on Thursday expanded on how a faster closure could be
achieved, suggesting that once the newly merged Anglo/Irish
Nationwide had sold its foreign assets and the Nationwide mortgage
book "it could be sensible" to put what was left into a new entity
that would also include foreign banks, Irish Independent recounts.
This new entity could then make an "attractive" asset for a
foreign investor who could create a full-service bank to end the
"duopoly" of AIB and Bank of Ireland, Mr. Dukes, as cited by Irish
Independent, said, though he cautioned that overseas investors
were unlikely to invest imminently.

Anglo is believed to be within days of announcing the sale of its
US$9.5 billion US loan book, and aims to sell the Nationwide
mortgage book by 2016, Irish Independent says.

According to Irish Independent, Mr. Dukes said that the bank would
"devote more energy" to selling the UK book once the US sales had
been completed.  Once the UK loan book is sold, Anglo will be left
with less than EUR10 billion of loans, Irish Independent states.

Mr. Dukes declined to predict exactly how long it will take to
close the bank, but said it would happen "more quickly" than the
10-year plan that was set in place by the Government, Irish
Independent notes.

                     Irish Nationwide Merger

As reported by the Troubled Company Reporter-Europe on July 1,
2011, related that The European Commission
cleared a bailout plan for Anglo Irish Bank and the Irish
Nationwide Building Society. disclosed that the
proposal, which was submitted for approval in January, provides
for the merger of the two troubled institutions and their winding
down over the next 10 years.  Anglo Irish and Irish Nationwide
jointly received EUR34.7 billion in capital injections from the
State to cover losses on property loans, noted.

Anglo Irish Bank Corp PLC --
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at Sept. 30,
2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products
and solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

CHECKMATE SECURITY: Unpaid Tax Bill Prompts Liquidation
Margaret Canning at Belfast Telegraph reports that liquidators
were appointed to Checkmate Security and Guarding, which employs
around 200 people, after legal action over an unpaid tax bill.

The partnership held Government contracts including the security
of Stormont Estate and other Government buildings, Belfast
Telegraph discloses.

According to Belfast Telegraph, a spokesman for liquidators RSM
McClure Watters said: "Liquidator Gregg Sterritt is currently
reviewing the operations of the business and is hopeful that a
significant number of its contracts, together with the relevant
employees, may be transferred to a new operator."

Belfast Telegraph relates that a spokeswoman for the Department of
Finance and Personnel, which awards Civil Service contracts, said
it had transferred "elements" of its security services contract to
security giant G4S "with immediate effect".

Checkmate Security and Guarding is based in Lisburn.

H RITCHIE: Cash Flow Problems Prompt Administration
Belfast Telegraph reports that directors of H Ritchie said they
appointed administrators after "major challenges in trading
through a depressed market and consequential cash flow problems".

The spokeswoman for H Ritchie said administrator John Cavanagh of
Cavanagh Kelly would try to keep the business trading so it could
be sold as a going concern, Belfast Telegraph relates.

H Ritchie is an electrical store.  The company had two premises
with 40 staff in Belfast and Enniskillen.

IRISH POST: Loot Owner Saves Newspaper from Liquidation
Press Gazette reports that the Irish Post is expected to be back
on newsstands within a fortnight after being bought by Irish
businessman Elgin Loane, who owns classified ads magazine Loot.

The Irish Post owners, Thomas Crosbie Holdings, closed the London-
based weekly newspaper on Aug. 19, 2011.  But following formal
liquidation, Mr. Loane filed a winning bid to buy it, Press
Gazette says.

"The Irish Post has a long and proud tradition of serving the
expatriate community in Britain for over forty years and must be
continued for the benefit of both the incumbents as well as the
growing population of Irish people heading to Britain,"
Press Gazette quotes Mr. Loane as saying.

Press Gazette adds that Irish Post journalist and Save the Irish
Post campaign member Fiona Audley said: "This is a victory for the
whole community. Now we are planning the future, which will see a
bigger and better Irish Post coming out for the readers."

Press Gazette notes that it is expected that the Post will be back
on the streets in ten days' time, and staff are being rehired.

Mr. Loane bought Loot magazine from Daily Mail and General Trust
last year via his business Printing Investments Ltd.

Established in 1970 by Clare-born journalist Breandan Mac Lua and
accountant Tony Beatty, the Irish Post employed 10 full-time


FERRETTI SPA: Lenders Explore Second Debt Restructuring
Isabell Witt at Reuters reports that banking sources said lenders
to Ferretti SpA are exploring a second debt restructuring as the
company is running short of liquidity and could breach covenants
on its EUR600 million (US$805 million) of loans.

The sources added that the lenders, which own Ferretti following a
2009 debt for equity swap, are working with the debt advisory
group at Rothschild and Ernst & Young to determine how much new
money the company needs and how much more debt it needs to write
down, Reuters notes.

A proposal from Chinese company Shandong Heavy Industry Group to
inject new cash in return for a 36 to 42% stake has expired after
being rejected by lenders who do not want to dilute their stakes,
Reuters relates.

The Chinese group made a new proposal, offering EUR300 to EUR350
million, Reuters says, citing a report in the Italian newspaper Il
Sole 24 Ore over the weekend.  The sources added that the lenders,
which include distressed investment fund Oaktree Capital
Management, may be willing to inject their own cash to keep
control, according to Reuters.

Ferretti SpA is an Italian luxury yacht maker.

VENUS-1 FINANCE: Fitch Lowers Rating on Class E Notes to 'CCsf'
Fitch Ratings has downgraded Venus-1 Finance S.r.l., a
securitisation of two portfolios of non-performing loans (NPLs),
Monviso 1 and Monviso 2, as follows:

  -- EUR17.5m class A (IT0004148026) downgraded to 'BBBsf' from
     'AAAsf'; Outlook Stable

  -- EUR8.2m class B (IT0004148034) downgraded at 'BBsf' from
     'AAsf'; Outlook Negative

  -- EUR6.3m class C (IT0004148042) downgraded at 'Bsf' from
     'Asf'; Outlook Negative

  -- EUR9.1m class D (IT0004148059) downgraded at 'CCCsf' from
     'BBBsf'; Recovery Rating of RR5 assigned

  -- EUR6.5m class E (IT0004148067) downgraded at 'CCsf' from
     'BBsf'; Recovery Rating of RR6 assigned

The downgrade of the notes is driven by the worsening collection
performance, the higher than expected legal and servicing fees for
the work-out of the claims and Fitch's view on the recovery
prospects for a portfolio primarily consisting of unsecured
defaulted loans.

As of the June 2011 interest payment date (IPD), cumulative total
collections since closing were EUR66.1 million.  Over the past two
IPDs, only EUR2.4 million has been distributed to the class A
notes as principal redemption; interest expenses on the notes was
EUR1.5 million.  The gross collections over the same period were
EUR8.7 million (versus EUR10.5 million recorded in the previous
collection year).  Legal costs, servicer remuneration and other
senior fees have been over 55% of gross collections, against
approximately 35% recorded since closing.  The reported gross book
value (GBV) of the portfolio was EUR247.4 million, down from
EUR303.2 million at closing. However, recovery potential is

The agency believes the recent worsening of the performance and
the high incidence of costs over collections will continue.
Therefore, different scenarios where the cumulative total
collections ranged between the original expectations
(approximately EUR120 million) and a revised amount (EUR100
million) were considered, equating to future gross collections of
approximately EUR54 million to EUR34 million, respectively.
Moreover, Fitch increased the assumed cost ratio in the region of
40%-50% of gross collections in light of past evidence. In these
scenarios, the class D and E notes would not be repaid in full.

The servicer (FBS, rated 'RSS2', 'CSS2') remuneration is based on
a management fee calculated in relation to outstanding GBV as well
as an incentive fee calculated as a percentage of recovered
amounts. With the increased seasoning, the recovery prospects for
a portfolio of unsecured claims naturally diminish.  Meanwhile,
the outstanding GBV is likely to remain high, which also inflates
the servicer management fees.  It may be in the best interest of
the noteholders if low value claims were cancelled, thereby
reducing the associated fees and legal expenses, although Fitch
cannot rely on this course of action being adopted by the
servicer.  The agency has been unable to make contact with the
servicer to discuss such matters.

Fitch also has concerns about unsecured NPLs in light of the
current economic conditions.  The likelihood of successful
discounted pay-off strategies and sale of claims to third parties
is reducing with the increased pressure on borrowers and limited
availability of financing.

The portfolios were originated in Italy by Sanpaolo IMI Group,
now part of the Intesa Sanpaolo group ('AA-'/Negative/'F1+'),
and were acquired in 2005 by ABN AMRO Bank N.V. (ABN, rated
'A+'/Stable/'F1+') and FBS Luxembourg S.a.r.l., which acquired a
small portion of the Monviso 1 portfolio of EUR1 million.  At
closing, the portfolio was predominantly made up of unsecured
NPLs, with 30,120 unsecured claims outstanding (94% of all claims
at closing) and 1,925 secured claims (6%).


TMD FRICTION: S&P Puts 'B+' Corp. Credit Rating on Watch Positive
Standard & Poor's Ratings Services placed its 'B+' corporate
credit rating on Luxemburg-based automotive supplier TMD Friction
S.A. (TMD) on CreditWatch with positive implications, which
indicates that there is a 50% chance of an upgrade on completion
of S&P's review.

"Our '4' recovery rating on TMD's senior secured notes is
unchanged," S&P said.

TMD has announced that its shareholders have entered into a
binding sale of shares agreement with Japan-based Nisshinbo
Holdings Inc. (Nisshinbo; not rated) to sell the entire issued
share capital of TMD to Nisshinbo for EUR440 million.

"We anticipate that a potential tie up of TMD with Nisshinbo's
brakes and friction business would positively affect TMD's
business profile as it would improve its market position and
geographical diversity. Cost synergies could also lead to
profitability improvement. The combination of TMD and Nisshinbo
Brake would give birth to a world leader in the automobile
friction material industry, with an estimated market share
estimated in the 15%-17% range. The two companies present a sound
strategic fit in our view given their complementary geographical
and customer coverage, both in terms of commercial position and
manufacturing footprint," S&P stated.

"We also view the transaction as potentially positive for TMD's
liquidity profile because TMD could benefit from Nisshinbo's more
diversified and cheaper access to funding. Standard & Poor's
expects to resolve the CreditWatch within the next 90 days subject
to the transaction completion. At this stage we anticipate the
rating to be no higher than the 'BB' category. Our analysis will
focus on an in-depth assessment of Nisshinbo's creditworthiness
and the likelihood of financial support from Nisshinbo to TMD in a
stress scenario. Should we consider Nisshinbo's creditworthiness
as higher than TMD's current rating and the likelihood of support
as high, this would result in an upgrade of TMD's rating, in
application of our parent-subsidiary criteria. Any rating action
will also depend on our updated review of TMD's stand-alone
business and financial risk profiles, in a potentially challenging
business environment," S&P related.


NEPTUNO CLO: Moody's Upgrades Ratings on Two Note Classes to 'B1'
Moody's Investors Service has upgraded the ratings of these notes
issued by Neptuno CLO I B.V.

Issuer: Neptuno CLO I B.V.

   -- EUR223M Class A-T Senior Secured Floating Rate Notes due
      2023, Upgraded to Aaa (sf); previously on Jun 22, 2011 Aa1
      (sf) Placed Under Review for Possible Upgrade

   -- EUR100M Class A-R Senior Secured Revolving Floating Rate
      Notes due 2023, Upgraded to Aaa (sf); previously on Jun 22,
      2011 Aa1 (sf) Placed Under Review for Possible Upgrade

   -- EUR44M Class B-1 Senior Secured Floating Rate Notes due
      2023, Upgraded to Aa3 (sf); previously on Jun 22, 2011 A2
      (sf) Placed Under Review for Possible Upgrade

   -- EUR4M Class B-2 Senior Secured Fixed Rate Notes due 2023,
      Upgraded to Aa3 (sf); previously on Jun 22, 2011 A2 (sf)
      Placed Under Review for Possible Upgrade

   -- EUR25M Class C Senior Secured Deferrable Floating Rate
      Notes due 2023, Upgraded to Baa1 (sf); previously on
      Jun 22, 2011 Baa3 (sf) Placed Under Review for Possible

   -- EUR28M Class D Senior Secured Deferrable Floating Rate
      Notes due 2023, Upgraded to Ba1 (sf); previously on
      Jun 22, 2011 B1 (sf) Placed Under Review for Possible

   -- EUR24M Class E-1 Senior Secured Deferrable Floating Rate
      Notes due 2023, Upgraded to B1 (sf); previously on Jun 22,
      2011 Caa3 (sf) Placed Under Review for Possible Upgrade

   -- EUR2M Class E-2 Senior Secured Deferrable Fixed Rate Notes
      due 2023, Upgraded to B1 (sf); previously on Jun 22, 2011
      Caa3 (sf) Placed Under Review for Possible Upgrade


Neptuno CLO I B.V., issued in May 2007, is a multi currency
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly senior secured European leveraged loans. The portfolio also
contains approximately 9.50% non senior secured loans including
mezzanine loans, second lien loans and high yield bonds as well as
approximately 2.60% CLO tranches from other transactions. The
portfolio is managed by Caja de Ahorros y Monte de Piedad de
Madrid ("Caja Madrid"). This transaction will be in reinvestment
period until 24 November 2014.

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

The overcollateralization ratios of the rated notes have improved
since the rating action in September 2009. The Class A/B, Class C,
Class D and Class E overcollateralization ratios are reported at
129.06%, 119.84%, 110.96% and 103.14%, respectively, versus
September 2009 levels of 121.97%, 113.72%, 105.49% and 98.78%,

Reported WARF has increased slightly from 2896 to 2909 between
September 2009 and August 2011. The change in reported WARF
understates the actual credit quality improvement because of the
technical transition related to rating factors of European
corporate credit estimates, as announced in the press release
published by Moody's on September 1, 2010. In addition, securities
rated Caa or lower make up approximately 8.67% of the underlying
portfolio as of August 2011 versus 12.89% in September 2009.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as the portfolio par amount, WARF,
diversity score, and weighted average recovery rate, may be
different from the trustee's reported numbers. In its base case,
Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of EUR438.16
million, defaulted par of EUR11.6 million, a weighted average
default probability of 20.18% (consistent with a WARF of 2990), a
weighted average recovery rate upon default of 45.55% for a Aaa
liability target rating, a diversity score of 38 and a weighted
average spread of 2.65%. The default probability is derived from
the credit quality of the collateral pool and Moody's expectation
of the remaining life of the collateral pool. The average recovery
rate to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool. For a Aaa
liability target rating, Moody's assumed that 88.07% of the
portfolio exposed to senior secured corporate assets would recover
50% upon default, while the non first-lien loan corporate assets
would recover 10%. In each case, historical and market performance
trends and collateral manager latitude for trading the collateral
are also relevant factors. These default and recovery properties
of the collateral pool are incorporated in cash flow model
analysis where they are subject to stresses as a function of the
target rating of each CLO liability being reviewed.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the large
concentration of speculative-grade debt maturing between 2012 and
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 65%of the collateral pool
consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. Large single exposures
to obligors bearing a credit estimate have been subject to a
stress applicable to concentrated pools as per the report titled
"Updated Approach to the Usage of Credit Estimates in Rated
Transactions" published in October 2009.

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

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

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

5) The deal has significant exposure to non-EUR denominated
assets. Volatilities in foreign exchange rate will have a direct
impact on interest and principal proceeds available to the
transaction, which may affect the expected loss of rated tranches.

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

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

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.


SeeNews, citing news agency Mediafax, reports that Floreasca
Construction filed for insolvency last week.

According to SeeNews, Mediafax reported that a Bucharest court was
set to review the insolvency petition yesterday.

Floreasca Construction, controlled by Turkey's Summa, reported a
profit of RON722 (US$222/EUR166) on a turnover of RON5,300 last
year, SeeNews discloses.

Floreasca Construction is based in Romania.

* ROMANIA: ANAT to Propose Tour Operator Bankruptcy Bill
Radu Bostan at Ziarul Financiar reports that the Romanian tourism
association ANAT will propose a bill whereby tourists must be
refunded within 15 days in case of the tour operator's bankruptcy.


* SAKHA: Fitch Upgrades Long-Term Currency Ratings to 'BB+'
Fitch Ratings has upgraded the Russian Republic of Sakha
(Yakutia)'s Long-term foreign and local currency ratings to 'BB+'
from 'BB' and National Long-term to 'AA(rus)' from 'AA-(rus)'.
The Outlooks are Positive.  The region's Short-term foreign
currency rating has been affirmed at 'B'.  The rating action also
affects the region's outstanding domestic bonds.

The upgrade reflects the region's sound budgetary performance, low
level of debt and diversifying economy. Restored demand for
primary resources, particularly diamonds, positively affected the
region's economy in 2010.  Additionally, rapid development of oil
and gas projects improved and diversified the region's tax base.
The agency expects that Sakha will further benefit from the
improved economic environment over the medium term.

Fitch stresses that positive rating action is subject to
maintenance of sound budgetary performance with operating margin
above the 15% level and curtailment of net overall risk at the
levels below 20% of current revenue.

Fitch expects further growth of tax revenue in 2011, leading to a
full-year operating margin of above 16%. Sakha's 2010 operating
margin increased to 16.8% from 11.1% a year earlier.  The region
recorded a surplus before debt variation of RUB3 billion or 3.1%
of total revenue, underpinned by 32.7% yoy growth of tax revenue.
Sakha has high self-financing capacity of its capital expenditure
-- the region's current balance exceeded its capital expenditure,
which reached RUB14.8 billion in 2010.

The region's direct risk was low and stable at about 11% of
current revenue in 2009-2010.  The direct risk payback ratio was
below one year of the current balance in 2010. Domestic bonds
composed about 75% of the region's direct risk stock in 2010, with
maturities spread until 2016.  Fitch expects a modest decrease of
the region's direct risk to about 10% of current revenue by the
end of 2011 and 8%-9% in 2012-2013.

The region's contingent risk is moderate, albeit increasing. It
comprises debt of public sector companies and guarantees issued in
support of the region's development.  Because of the republic's
remoteness, under-developed infrastructure and severe climate,
development of regular commercial operations is constrained, which
in turn necessitates maintenance of a large broad public sector.
Fitch notes that the region should continue to exercise strict
control over its increasing contingent liabilities in order to
protect debt ratios supporting the ratings.

Sakha is Russia's largest region by area, rich in natural
resources.  It accounts for 0.7% of the national population and 1%
of the national GDP.  Sakha's socio-economic profile is strong,
with wealth indicators above the national median.

S L O V A K   R E P U B L I C

* SLOVAK REPUBLIC: Bankruptcies Expected to Reach 700 in 2011
CTK, citing a study of credit insurance company Euler Hermes, says
bankruptcy cases in Slovakia would increase to 700 in 2011,
representing a 21% year-on-year decline.

According to CTK, Euler Hermes said the highest number of
bankruptcies in Slovakia was seen in 2006 (1,723 cases).

Euler Hermes, as cited by CTK, said it is hard to predict the
number of bankruptcies in Slovakia in 2012 due to the prepared
legislative measures.


CATALUNYACAIXA: Moody's Withdraws 'Ba1' Deposit Ratings
Moody's Investors Service has withdrawn these ratings of Caixa
d'Estalvis de Catalunya, Tarragona i Manresa (CatalunyaCaixa): (i)
the standalone bank financial strength rating (BFSR) of D (which
mapped to Ba2 on the long-term scale); (ii) the long and short
term deposit ratings of Ba1/Not Prime; and (iii) the long-term
issuer rating of Ba1. This rating action follows the transfer of
the financial business of the savings bank, CatalunyaCaixa, to a
commercial bank (CatalunyaBanc) effective as of October 1, 2011.

Ratings on existing debt have been transferred to CatalunyaBanc
which upon completion of the transfer, will assume all debt issued
by CatalunyaCaixa. At the same time, Moody's has assigned a BFSR
of D (mapping to a Ba2 on the long-term scale) and a long and
short-term deposit rating of Ba1/Not Prime to CatalunyaBanc in
line with the ratings previously assigned to CatalunyaCaixa. The
outlook on all ratings remains negative.



Downward pressure could be exerted on CatalunyaBanc's standalone
credit strength in the case of (i) the crystallization of
significantly higher asset impairments compared to H1 2011 levels
which would put renewed pressure on capital levels; (ii) a more
constrained access to ECB funding, either due to limitations of
available ECB collateral or a potentially more restrictive ECB
policy as a lender of last resort.

CatalunyaBanc's senior debt and deposit ratings benefit from
systemic support. These ratings are therefore (i) linked to the
creditworthiness of the Spanish government; and (ii) exposed to
any further reduction of Moody's current systemic support
assumption. A downgrade of the Spanish government could also exert
downward pressure on CatalunyaBanc's debt and deposit ratings. The
bank's debt and deposit ratings are also linked to the standalone
BFSR, and any change to the BFSR would likely also impact these

An improvement in CatalunyaBanc's standalone BFSR could exert
upward rating pressure on its debt and deposit ratings. This could
be driven by the longer-term benefits of the restructuring that
should lead to (i) stronger corporate governance; (ii) greater
efficiency of cost structures; (iii) an in-depth revision of risk
management practices; (iv) reduction of its exposure to real-
estate and related assets together with a stronger risk absorption

The 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, and Moody's
Guidelines for Rating Bank Hybrid Securities and Subordinated Debt
published in November 2009.

Headquartered in Barcelona, Spain, CatalunyaCaixa had total assets
(unaudited) of EUR76.4 billion as of end-June 2011


* UKRAINE: Cabinet Approves Five Unprofitable Mines' Liquidation
Interfax-Ukraine reports that the Ukrainian cabinet has permitted
the liquidation of five unprofitable state-run mines located in
Donetsk and Luhansk regions.

A list of the mines to be liquidated was approved in cabinet
resolution No. 912-r of Sept. 28, 2011, which has been posted on
the cabinet's Web site, according to the news agency.

The report says the mines to be closed are mine No. 4-21 of
Donetsk Coal Energy Company, and its Lidiyivka mine, the Kiselev
Mine, which belongs to state-run company Torezantracit (all based
in Donetsk region), state-run company Krepinska Mine of Antracit
and Mine No. 5 of state-run enterprise Donbasantracit (both based
in Luhansk region).

The Energy and Coal Industry Ministry said that in particular,
Krepinska Mine extracted 9,400 tonnes of coal in January-July
2011, and Lidiyivka mine extracted 15,600 tonnes.

Interfax-Ukraine notes that the program of economic reforms for
2010-2014 foresees the privatization of attractive state-run mines
and the liquidation of unprofitable ones.

In June 2010, the report says, the ministry approved a list of 26
mines, which could be liquidated in 2011-2015.

U N I T E D   K I N G D O M

ALEXON: Sun Capital Buys Firm Out of Administration, Saves Jobs
Luton News reports that Alexon has been bought out by private-
equity firm Sun Capital Partners just hours after the firm fell
into administration.

The sale is expected to save more than 2,700 jobs, according to
Luton News.

"We are extremely pleased to have a new owner which gives our
business the more appropriate capital structure that we have been
seeking. . . . The capital investment that Sun European Partners
affiliate will be making in Alexon as part of this transaction
will enable us to invest further in our turnaround strategy which
is focused our restructuring our store portfolio, the roll out of
new retail environments and further acceleration of our e-commerce
business," the report quoted Jane McNally, chief executive officer
of Alexon, as saying.

Headquartered in Luton, Alexon is a womens wear company.  It
operates brands such as Kaliko, Ann Harvey and Eastex.  Alexon
began trading in 1929 and operates from more than 990 outlets
across the UK and Europe.

BROWNE SMITH: Collapse Leaves Youth Center Unfinished
Teesdale Mercury reports that Browne Smith Baker's fall into
administration has left Barnard Castle's multi-million pound youth
center project unfinished.

Browne Smith Baker worked alongside the staff and members of
Teesdale Community Resources to create the eye-catching Hub at
Shaw Bank, according to Teesdale Mercury.

The report notes that the Hub was officially opened in January but
there have been a number of minor setbacks which have resulted in
part of the building not being able to open.

Teesdale Mercury notes that Phil Hughes, chairman of TCR, said he
was disappointed that the company, which had worked shoulder-to-
shoulder with the young people whose dream it was to create The
Hub, had not contacted them before the announcement was made.

"I'm disappointed by the lack of communication from them that this
was going to happen.  In their capacity as The Hub's architects,
it was a requirement that they would oversee all the work that has
not yet been completed.  Obviously this won't be happening now,"
the report quoted Mr. Hughes as saying.

As reported in the Troubled Company Reporter-Europe on Sept. 8,
2011, Insider Media said that Architects' practice Browne Smith
Baker has gone into administration after a reduction in turnover
caused it to fail.  A total of 25 employees including 6 partners
lost their jobs in the process, according to the report.
Operating from Newcastle, Darlington, Leeds and Hull, the limited
liability partnership was behind project management business BSB
Project Services, which has also gone into administration,
Insider Media relates.  Administrators from Grant Thornton in
Newcastle have been appointed to the business.

Headquartered in Leeds, Browne Smith Baker Architects Limited was
incorporated on August 31 by the former directors of Browne Smith
Baker.  It has offices in Yorkshire and the North East.

FORDGATE COMM: Fitch Cuts Rating on GBP23.9-Mil. Notes to 'BBsf'
Fitch Ratings has downgraded Fordgate Commercial Securitisation
No.1 plc's notes, as follows:

  -- GBP238.1m class A (XS0027160018): downgraded to 'BBBsf' from
     'AAsf'; Outlook Stable

  -- GBP23.8m class B (XS02716505148): downgraded to 'BBsf' from
     'Asf'; Outlook Stable

The downgrades are principally driven by Fitch's view that the
portfolio will continue to deteriorate until loan maturity in
October 2013, at which point a difficult and protracted workout is
likely to follow.  The Fitch senior and whole loan LTVs are 81.4%
and 129.1%, respectively.

Since the last rating action in March 2011, the largest tenant,
BRB Residuary Ltd, which had a lease over the entirety of the
Friars Bridge Court property, has not renewed its lease.  Although
several sub-tenants have stayed in occupation, the main tenant's
departure has caused the transaction's annual rental proceeds to
fall to GBP24.7 million from GBP27.6 million.  The securitized ICR
subsequently fell to 1.58x from 1.71x.

The transaction's collateral mainly comprises large secondary
assets let to financially strong tenants, but with short remaining
lease terms. As such, the deal is exposed to a 'lumpy' lease
rollover profile.  In its analysis, Fitch assumed low renewal
probabilities for a number of large leases and assumed long void
periods upon vacancy.

Fitch continues to observe weak occupier and investor demand for
large non-London secondary assets.  Some examples of prolonged
vacancy within the transaction include the Melton Enterprise Park,
a 37,254sqm distribution centre that has remained vacant and non-
income producing for over two years, and the Teeside asset, whose
tenant has not been in occupation for years (although is still
paying the contracted rent).

There is no indication that any of the assets are currently being
marketed. Fitch believes that only four properties (Argyle House
in Edinburgh and the three Hill of Rubislaw assets in Aberdeen)
may offer stable income streams over the medium term to be
attractive to investors, and that without significant lease
extensions, the remaining properties could only be sold at
significant discounts to their closing market value.

Fitch believes the transaction will not default before loan
maturity in October 2013. The whole loan ICR is currently 0.93x.
However, since a non payment of the subordinated debt does not
constitute an event of default for the securitized senior loan,
there is limited scope for the servicer, Morgan Stanley Mortgage
Servicing Ltd ('CSS2-'), to proactively intervene prior to loan
maturity (for example, by enforcing the senior loan security).
The subordinated B and C lenders are currently exposed to interest

Fitch has seen limited evidence that the sponsor, Fordgate, is
willing to inject the significant amounts required to improve the
assets' quality. Instead, its strategy seems to be focused on
keeping tenants in occupation.  Although this strategy may prevail
and only minimal tenant incentives may be required to keep stable
occupancy levels, Fitch believes instead that the portfolio NOI
will continue to fall and that by loan maturity the senior ICR
will have reduced to close to 1.0x coverage.

QUAYSIDE JOINERY: Adderstone Group Buys Firm Out of Liquidation
Peter McCusker at The Journal reports that Quayside Joinery has
been bought out of liquidation by Newcastle entrepreneur Ian
Baggett's Adderstone Group.

According to the Journal, the company had been owned by the Blyth
Harbour Commission but was put into liquidation in early August.

The buy-out saved the jobs of its eight staff, the report says.

The Journal notes that Mr. Baggett has appointed Dave McCourt as
the new operations director.  Mr. McCourt started with the
business as a 16-year-old apprentice, his father having previously
founded it 21 years ago.

Blyth-based Quayside Joinery specializes in supplying staircases
to the some of the UK's biggest housebuilders.

ULYSSES PLC: Fitch Downgrades Rating on Class E Notes to 'CCsf'
Fitch Ratings has downgraded Ulysses (European Loan Conduit No.
27) Plc's class A, B and E notes and affirmed all other note
classes, as follows:

  -- GBP290m class A (XS0308745107) downgraded to 'Asf' from
     'AAsf'; Outlook Stable

  -- GBP76m class B (XS0308747657) downgraded to 'BBsf' from
     'BBBsf'; Outlook Stable

  -- GBP48m class C (XS0308748200) affirmed at 'Bsf'; Outlook
     revised to Negative from Stable

  -- GBP45m class D (XS0308748622) affirmed at 'CCCsf'; Recovery
     Rating (RR) 'RR5' assigned

  -- GBP11m class E (XS0308749356) downgraded to 'CCsf' from
     'CCCsf'; 'RR6' assigned

The downgrades are primarily driven by the fall in rental income
since Fitch's last rating action in November 2010.  Until then,
rental performance had been stable, with occupancy staying above
99%.  However, the departure in June of a key tenant responsible
for 12% of rent, Macquarie Bank Limited ('A+'/Stable), has
weakened the rent roll.  While 44% of the vacated space has
already been re-let and there are grounds to expect new tenants to
be found for the remaining 5.3% of unoccupied space, there is less
certainty and a greater chance of loan default.

Combined with the lack of sponsor equity; increased reliance on
rental top-ups (guaranteed by the sponsor for a further GBP1.6m);
the prospect of swap breakage costs dragging on through the tail
period and therefore limiting the servicer's options; and possible
conflicts of interest between the servicer and subordinated
creditors; any exposure to the occupational market weakens overall
loan credit quality. Fitch now expects losses on the class E

Although the securitized interest coverage ratio (ICR) has fallen
to 1.03x, the agency does not foresee a liquidity draw before loan
maturity, as none of the major tenants has break options before
July 2014.  However, balloon risk remains pertinent, given the
borrower's high leverage.  The property was re-valued in February
2011 (GBP447 million), causing the reported securitized loan-to-
value ratio (LTV) to increase to 96% versus 65% at closing. Based
on Fitch's estimates, market value is in the region of GBP400
million, with the securitized/whole-loan LTV at 107% and 133%,


* EUROPE: German Economy Minister Proposes State Insolvency Rules
According to Bloomberg News' Jan Dahinten, German daily
Frankfurter Allgemeine Zeitung reported that German Economy
Minister Philipp Roesler proposed in a letter to the finance
ministry that euro-area countries unable to pay their debt should
be restructured under procedures that would force them to
partially renounce some of their sovereign rights.

Citing Mr. Roesler's letter, the newspaper said an independent
committee should lead negotiations between debtor country and
private sector creditors, Bloomberg notes.  At the same time, the
country would have to submit a credible budget restructuring plan,
Bloomberg states.  The newspaper, as cited by Bloomberg, said Mr.
Roesler, who heads German Chancellor Angela Merkel's Free
Democratic coalition ally FDP, wants his proposals included in the
draft contract of the European Stability Mechanism, or ESM.

According to the FAZ, the ESM would only provide financial aid if
creditors agree to "take an appropriate share" in the rescue
effort and both parties should face material disadvantages if they
fail to reach an agreement, Bloomberg discloses.

* EUROPE: Germany Approves Expansion of Euro-Area Rescue Fund
Tony Czuczka and Brian Parkin at Bloomberg News report that German
lawmakers approved an expansion of the euro-area rescue fund's
firepower, freeing the way for European officials to focus on what
next steps may be needed to stem the debt crisis.

The lower house of parliament passed the measure with 523 votes in
favor and 85 against, granting the fund powers to buy bonds in
secondary markets, enable bank recapitalizations and offer
precautionary credit lines, Bloomberg relates.  It raises
Germany's guarantees to EUR211 billion (US$287 billion) from
EUR123 billion, Bloomberg discloses.  The main opposition Social
Democrats and Greens said before on Thursday's session in Berlin
that they'd vote with Chancellor Angela Merkel's government,
assuring passage, Bloomberg recounts.

The bill's passage by Europe's biggest economy allows euro-area
officials to weigh further measures to bolster Greece and stem
investor concern that helped end the biggest three-day rally in 16
months for European stocks, Bloomberg says.  Options include
seeking further writedowns on Greek sovereign bonds, adding yet
more firepower to the rescue fund and a plan to protect banks
Bloomberg notes.

According to Bloomberg, Holger Schmieding, chief economist at Joh.
Berenberg Gossler & Co. in London, said that beefing up the fund
bolsters defenses against the crisis, setting the stage for German
policy makers to focus on Greece's second bailout.

That "may morph into a debate about an orderly Greek default later
this year, with a haircut on Greek debt, an immediate
recapitalization of Greek banks, European guarantees for
restructured Greek debt and conditional fiscal support" for
Greece, Bloomberg quotes Mr. Schmieding as saying.


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

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

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

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  Go to order any title today.


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

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

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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