TCREUR_Public/111103.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, November 3, 2011, Vol. 12, No. 218



FAURECIA SA: Moody's Assigns 'Ba3' Corporate Family Rating


LANTIQ BETEILIGUNGS: S&P Lowers Corp. Credit Rating to 'CCC+'


* GREECE: Referendum May Hamper IMF & EU Aid, de Jager Says


* ICELAND: To Start Repaying Foreign Depositor Claims


CUSTOM HOUSE: Disabled Client Hit by Liquidation
FASTNET: Enters Into Examinership; Suspends Sailings
* IRELAND: Nine Companies Declared Everyday in October


SEAT PAGINE: Has One Month to Agree on Financial Restructuring


MARCO POLO: Asks Bankruptcy Judge for More Restructuring Time


MOBILE TELESYSTEMS: Moody's Confirms 'Ba2' Corp. Family Rating


IM BANCO: Moody's Assigns 'Caa1' Rating to EUR325MM Series B Note


SAAB AUTOMOBILE: Business Plan Far From Complete

U N I T E D   K I N G D O M

INMARSAT HOLDINGS: S&P Affirms 'BB+' Corporate Credit Rating
JJB SPORTS: Incurs Significant Restructuring Costs; Losses Rise
JOHN PETERS: Goes Into Liquidation; 55 Workers Lose Jobs
OCTAGON HEALTHCARE: S&P Affirms 'BB+' SPUR on GBP341-Mil. Bonds
R&D CONSTRUCTION: Former Workers Win Redundancy Tribunal Payout

* UK: Scottish Corporate Insolvencies Up 29% in Third Qtr. 2011
* UK: Pensions Regulator Widens Probe Into Pre-Packs


AGROBANK OJSC: Fitch Places 'B-/B' IDRs on Watch Negative
AMIRBANK: S&P Assigns 'CCC/C' Counterparty Credit Ratings


* Upcoming Meetings, Conferences and Seminars



FAURECIA SA: Moody's Assigns 'Ba3' Corporate Family Rating
Moody's Investors Service has assigned a Ba3 Corporate Family
Rating ("CFR") to Faurecia S.A. Concurrently, Moody's has
assigned a provisional (P)Ba3 (LGD3-44%) rating to the EUR 300
million worth of Guaranteed Senior Notes proposed by Faurecia
S.A. The outlook on the rating is positive. This is the first
time that Moody's has rated Faurecia S.A.

Moody's issues provisional ratings in advance of the final sale
of securities and these reflect the rating agency's credit
opinion regarding the transaction only. Upon a conclusive review
of the final documentation, Moody's will endeavor to assign a
definitive rating to the notes. A definitive rating may differ
from a provisional rating.

Ratings Rationale

The Ba3 rating is supported by Faurecia's solid business profile.
In particular, Moody's views as credit strengths (i) the large
size of Faurecia's operations, (ii) its global presence, (iii)
the company's solid market positions and (iv) established
customer relationships with most of the global original equipment
manufacturers (OEMs).

These strengths are diluted by certain risks related to
Faurecia's business profile. In this respect Moody's cautions
that Faurecia is a pure automotive component supplier without any
notable diversification into non-automotive activities. Faurecia
also lacks a material aftermarket business that could help reduce
volatility that the company is exposed to. The rating also
reflects the general risks to which virtually all automotive
suppliers are exposed. In particular, Moody's views the high
level of competition in the automotive supply sector and the
strong bargaining power of OEM customers as a permanent challenge
to profit margins. In addition, the automotive industry is a
cyclical business and therefore significantly exposed to the
overall economic environment. Moreover, the company's customer
and geographic diversification is currently rather limited
whereby Moody's acknowledges that both customer and geographic
diversification will further improve, if management's expansion
strategy in Asia proves to be successful. Nonetheless, Moody's is
of the opinion that Faurecia's business profile, viewed on an
isolated basis, could qualify for a higher rating.

The Ba3 rating balances Faurecia's poor profitability and weak
credit metrics in the past against recent improvements and
Moody's expectation of future financial performance. Until 2009
EBIT-margins were negative and leverage ratios were at deep sub-
investment grade levels on a Moody's adjusted basis. Main reason
for this was low underlying profitability further exacerbated by
substantial restructuring costs. However, earnings and financial
ratios notably improved in 2010 and 2011. As a result Faurecia's
credit metrics as of June 2011 are in the Ba-Baa rating area
viewed on an isolated basis (e.g. debt/EBITDA 3.5x, RCF/Net Debt
26%) notwithstanding the fact that these metrics have been
achieved probably near the peak of the economic cycle.

The Ba3 rating is based on Moody's view that Faurecia will be
able to maintain recent improvements in its financial ratios and
sustainably achieve EBIT-margins of at least 2% and debt/EBITDA
close to 4x or lower on a Moody's adjusted basis. This
expectation reflects the rating agency's view that recent
improvements in Faurecia's earnings were not only driven by the
rebound in global car production volumes since 2010 but also by
structural changes made by the company. Moreover, Moody's
believes that a further expansion of revenues in emerging markets
should be accretive to profit margins given a more favorable
supply/demand balance in these regions. Lastly, Moody's is of the
opinion that Faurecia emerged as a beneficiary of the 2008/09
industry downturn as OEMs increasingly prefer to work with
suppliers with global reach and an adequate financial profile.

The positive outlook reflects the possibility of a rating upgrade
over the next 12-18 months should Faurecia manage to achieve (i)
EBIT-margins of 3% or higher, (ii) positive Free Cash Flow
generation, and (iii) a debt/EBITDA ratio below 3.5x on a
sustainable basis.

Conversely, a deterioration in earnings and cash flow generation
reflected in negative Free Cash Flow or EBIT-margins below 2%
would put pressure on the rating. In addition, pressure on the
rating could evolve should debt/EBITDA rise again materially
above 4x.

Moody's believes that currently the major risks faced by Faurecia
are in the macroeconomic environment, such as weaker growth in
Europe linked to a potential escalating crisis in the European
periphery, a potentially more challenging economic environment in
North America or a rapid cooling of economic growth in emerging
markets such as China, or unforeseen operational issues (e.g.
problems with new product launches, the regional expansion in
Asia or the integration of recent acquisitions). These risks
could derail the prospects of potential improvements in
Faurecia's performance and metrics.

The proposed EUR300 million worth of Guaranteed Senior Notes are
part of a larger refinancing exercise undertaking by Faurecia in
order to extend its maturity profile and enhance its financial
flexibility. Faurecia is contemplating refinancing its existing
core credit facility (EUR1,420 million) with (i) EUR300 million
worth of Guaranteed Senior Notes and a new EUR1,150 million
syndicated credit facility. The refinancing will be leverage
neutral on a net debt basis. In addition, Faurecia recently
issued EUR58 million worth of promissory notes.

Faurecia S.A. will be the issuer of the proposed Guaranteed
Senior Notes as well as the borrower of the syndicated credit
facility. Faurecia S.A. is the parent company of Faurecia group
and a holding company. It does not own or operate tangible assets
and therefore relies on funds provided by its operating
subsidiaries to service its financial obligations. The (P)Ba3
rating for the proposed Guaranteed Senior Notes reflects that the
proposed Guaranteed Senior Notes as well as the new syndicated
credit facility will be supported by upstream guarantees of
operating subsidiaries representing approximately 75% of group
EBITDA. This mitigates the structural subordination of the
proposed notes and the new syndicated credit facility to the
financial obligations, such as trade payables, of Faurecia S.A.'s
subsidiaries. Therefore Moody's ranked the proposed notes and the
new syndicated credit facility at the same level as the
liabilities of operating subsidiaries, including trade payables
and pensions, for the purpose of its Loss-Given-Default-Model.

As of June 2011, Faurecia had a sizeable cash position of EUR732
million and available commitments with a maturity of more than
one year of EUR536 million under its existing core credit
facility. However, the company also had sizeable short-term debt
maturities (EUR798 million) and off-balance sheet factoring
activities (EUR387 million). Moody's views positively that
Faurecia was able to rely on its relationship banks during the
recent recession and also that according to management data its
factoring arrangements worked well also in the middle of the
industry downturn. Nonetheless, Moody's considers the group's
liquidity profile to be rather weak despite the expected moderate
increase in its long-term funds from the refinancing
transactions. Moody's further cautions that Faurecia's core
credit facilities also contain conditionality language in the
form of financial covenants.


   Issuer: Faurecia SA

   -- Probability of Default Rating, Assigned Ba3

   -- Corporate Family Rating, Assigned Ba3

   -- Senior Unsecured Regular Bond/Debenture, Assigned a (P)Ba3

Principal Methodology

The principal methodology used in rating Faurecia S.A. was the
Global Automotive Supplier 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.

Headquartered in Paris, France, Faurecia group is one of the
world's largest automotive suppliers of seats, exhaust systems,
exteriors and interiors. In the last twelve months ended June
2011, group revenues amounted to EUR15.1 billion. The group
operates along four divisions: Automotive Seating, Interior
Systems, Emission Control Technologies and Automotive Exteriors.
The parent company, Faurecia S.A., is a holding company that
directly and indirectly provides financial, accounting, general
management and administrative services to the group. Faurecia
S.A. is listed on the Paris stock exchange. The company's largest
shareholder is PSA Peugeot Citro‰n with a 57% shareholding. The
remaining shares are in free float.


LANTIQ BETEILIGUNGS: S&P Lowers Corp. Credit Rating to 'CCC+'
Standard & Poor's Ratings Services lowered the long-term
corporate credit rating on Germany-based semiconductor company
Lantiq Beteiligungs- GmbH & Co. KG to 'CCC+' from 'B'. "At the
same time, we removed the rating on Lantiq from CreditWatch,
where it was placed with negative implications on July 25, 2011.
The outlook is negative," S&P related.

"We also lowered our 'B+' issue ratings on Lantiq's debt to 'B-',
one notch above the corporate credit rating. The recovery rating
on the debt remains at '2', indicating our expectation of
substantial (70%-90%) recovery in the event of a payment
default," S&P said.

"The downgrade reflects our assessment that Lantiq's liquidity
profile has deteriorated to 'weak' from 'less than adequate'
under our criteria, primarily due to the company's weaker than
expected results in the fiscal year ended Sept. 30, 2011, and our
expectations of continued weak operating results in the near
term," said Standard & Poor's credit analyst Matthias Raab. "It
also reflects Lantiq's currently limited liquidity reserves and
free cash flow generation prospects, and our projections that the
company is unlikely to be able to comply with its current
financial maintenance covenant schedule in the coming quarters."

"Furthermore, we expect that Lantiq will likely need significant
additional funding from its owner, private equity company Golden
Gate Capital (GGC), to cover upcoming debt repayments of $28
million in fiscal 2012. Lantiq already received a moderate cash
contribution from GGC in Sept. 2011," S&P stated.

"We forecast that Lantiq likely breached its covenants in the
quarter ended Sept. 30, 2011. It could remedy a potential breach
by exercising its right to inject equity funding. However, as the
debt documentation allows for only one equity cure within four
quarters, we believe Lantiq may need to renegotiate its current
covenant schedule to avoid another covenant breach for the
current quarter. Nevertheless, we understand from discussions
with GGC that the sponsor is willing and able to support Lantiq
with additional funding over the coming quarters, which could be
supportive for negotiations with lenders, in our view," S&P

"We are revising our business risk profile assessment to
'vulnerable' from 'weak', primarily to reflect Lantiq's
significantly more volatile and weaker revenue trends and
operating margins than we previously expected.  The negative
outlook reflects the possibility of a downgrade if Lantiq is not
able to renegotiate its covenants with adequate headroom by year-
end 2011," said Mr Raab. "We could also lower the rating if the
expected additional funding from GGC is not forthcoming or,
although not expected at this stage, if we perceive that there
would be a risk of debt restructuring measures that we would deem
to be tantamount to a default under our criteria."

"We believe that developments in the rating on Lantiq will likely
be determined over the next few months mainly by the outcome of
its expected negotiations on covenants with its lenders and the
amount and timing of cash contributions from GGC," S&P said.


* GREECE: Referendum May Hamper IMF & EU Aid, de Jager Says
Jurjen van de Pol and Fred Pals at Bloomberg News report that
Dutch Finance Minister Jan Kees de Jager said a Greek referendum
on its latest bailout package will hinder the next installment of
aid funds from the International Monetary Fund and the European

According to Bloomberg, Dutch Prime Minister Mark Rutte told
lawmakers that the Netherlands and euro-area countries including
Germany and France seek to minimize the damage from a "very
unfortunate" referendum called by Greek Prime Minister
George Papandreou.

The new round of political turmoil throws into doubt Greece's
ability to access the emergency funding that's keeping its
finances afloat, Bloomberg says.  The IMF's executive board was
due to meet in mid-November to decide on its part of the sixth
tranche, which is worth a total of EUR8 billion (US$11 billion),
Bloomberg discloses.  Greece has said it has the cash to operate
until mid-November, Bloomberg notes.

In Germany, the head of parliament's interior-affairs committee,
Wolfgang Bosbach, on Wednesday told ZDF television he "can't
imagine" that the next tranche will be disbursed without
assurances that Greece will meet its commitments under the aid

France and Germany are "also searching for a way out that
minimizes the damage from what has happened in Greece," Mr. Rutte
told parliament, adding the Netherlands and other euro-area
states are putting pressure on Greece to cancel the referendum,
Bloomberg discloses.  Mr. Papandreou, as cited by Bloomberg, said
the vote will confirm Greece's commitment to the euro.


* ICELAND: To Start Repaying Foreign Depositor Claims
Omar R. Valdimarsson at Bloomberg News reports that Iceland will
start paying out as much as US$11.4 billion in foreign depositor
claims after the country's top court upheld an emergency law that
leaves bank bondholders in the lurch and protects ordinary
account holders.

According to Bloomberg, Economy Minister Arni Pall Arnason said
the decision by Iceland's Supreme Court to rule in favor of a
crisis bill enacted three years ago "marks the endpoint" to a
dispute with the U.K. and the Netherlands triggered by the
island's 2008 financial collapse.

Bloomberg relates that Mr. Arnason said that the ruling will help
repair relations with the two countries, whose depositors risked
losing their savings when Iceland's second-biggest bank

"It's clear from these rulings that all depositors, regardless of
nationality, residency, nature or amount of their deposit, will
get their money back in full," Bloomberg quotes Mr. Arnason as
saying in an interview in Reykjavik.  He said that repayment may
start within weeks, Bloomberg notes.

Iceland's banks defaulted on US$85 billion at the end of 2008, as
the government ring-fenced lenders' domestic operations in an
effort to protect the US$12 billion economy from total collapse,
Bloomberg recounts.

The local assets of Landsbanki Islands hf, Kaupthing Bank hf and
Glitnir Bank hf were taken over by the state, which has since
created new banks from the lenders, Bloomberg relates.
Bondholders, including Royal Bank of Scotland Plc, BNP Paribas SA
and Deutsche Bank AG, are still trying to recoup their funds,
Bloomberg notes.

                         Bondholder Claims

"U.K.-based depositors have already received the full amount"
they held in the accounts offered by Landsbanki "from the British
Financial Services Compensation Scheme, which will now be paid
back in full, with the first payments likely to be made in a
matter of weeks," Mr. Arnason, as cited by Bloomberg, said.
According to Bloomberg, he said the Dutch depositors, who were
covered up to EUR100,000, will be repaid once the final
"technicalities" are brushed aside.

The Dutch Central Bank expects a "substantial sum" to be paid out
this year to deposit holders of Landsbanki's Icesave unit, the
bank, as cited by Bloomberg, said after the Supreme Court
announced its decision.  Bloomberg relates that the central bank
said the claim of deposit holders in the Netherlands totals
EUR1.6 billion (US$2.27 billion).

Bloomberg notes that while the court's decision frees up funds to
end the three-year depositor dispute, it may revive bondholder
efforts to push their claims.

"Should any of the creditors of Landsbanki, Kaupthing or Glitnir
decide to take the emergency legislation up with the European
Court of Human Rights, that's simply something we'll deal with
when the time comes," Bloomberg quotes Mr. Arnason as saying.
"It will be very difficult for the creditors to bring credible
claims before the European Court of Human Rights."


CUSTOM HOUSE: Disabled Client Hit by Liquidation
Louise McBride at reports that an adult with
special needs is among the 1,500 clients facing losses after the
investment company Custom House Capital went into liquidation
last week.

As reported in the Troubled Company Reporter-Europe on Oct. 25,
2011, The Irish Times said that the High Court has appointed a
liquidator to Custom House Capital after Central Bank inspectors
found "systemic and deliberate misuse" of more than EUR56 million
of client funds.  A 198-page report by two inspectors into the
company described "a sort of Irish Ponzi scheme", Mr. Justice
Gerard Hogan, as cited by The Irish Times, said. relates that the Garda Fraud Squad is now
investigating CHC and, within the next few months, expects to
question those who ran some of the investment products where this
misuse occurred, according to a source close to the garda

"Some individuals are facing losses of between EUR4 million and
EUR5 million," the source told  "One individual
is an adult with special needs who was left money by his parents.
This individual was relying on the money in the fund."

The Sunday Independent understands that some client money was
invested in properties in Berlin, Germany -- without the
knowledge or approval of clients.

The report also states that some clients will lose money after
about EUR9 million of their money was invested in an uncompleted
Spanish property development, which is now worth "considerably
less than EUR9 million".

CHC also used client money to pay the day-to-day bills of
property projects, the report notes. says some holders of the Government-backed
pensions, Personal Retirement Savings Accounts (PRSAs), could
also lose money following the liquidation of CHC.

Custom House Capital is a Dublin investment firm.

FASTNET: Enters Into Examinership; Suspends Sailings
Sean O'Riordan and Vivion Kilfeather at Irish Examiner reports
that Fastnet has suspended all sailings after the High Court
granted it permission to enter examinership.

The High Court heard the Fastnet companies are insolvent with a
deficit of EUR10.3 million on a going concern basis, rising to
about EUR13.2 million in a winding-up scenario, Irish Examiner

The company is planning to relaunch sailings from next April to
September, but will axe its winter service, Irish Examiner

The Fastnet Line has been severely hampered by rising oil prices,
with fuel costing EUR18, 560 per voyage, Irish Examiner says.  It
is also believed it was seriously undercapitalized from the start
and experienced cashflow problems, Irish Examiner notes.

Cork City Council and the county councils in Cork and Kerry have
already invested EUR700,000, Irish Examiner states.  Last July,
the company approached Cork County Council for a further
EUR100,000 to overcome cashflow difficulties, Irish Examiner
recounts.  The three local authorities have agreed to provide a
further EUR150,000 for the period of examinership, according to
Irish Examiner.

Fastnet is a passenger ferry company operating the Cork-Swansea
route.  The company employs around 70 staff.

* IRELAND: Nine Companies Declared Everyday in October
------------------------------------------------------, citing figures released by,
reports that nine Irish companies were declared insolvent every
working day in the month of October. discloses that a total of 172 companies were
declared insolvent in October 2011, with business and
professional services companies now ranking alongside
construction companies as the worst sectors affected, according
to the report.

The report says also released the results of its
monthly company stress tests.

Of the companies surveyed in the sample, 41% are viewed as high
risk in terms of their risk of failure, 20% are classified as
medium risk, and 39% are low risk.

"The level of business failures continues to be stubbornly high,"
the report quotes Christine Cullen, Managing Director of vision-, as saying.  "There are few real signs yet of recovery in
the domestic sector, with professional services firms starting to
creep in the wrong direction."


SEAT PAGINE: Has One Month to Agree on Financial Restructuring
Salamander Davoudi and Amie Tsang at The Financial Times report
that Seat Pagine Gialle has one month to agree the terms of its
financial restructuring with its debt and equity holders or it
faces administration.

Seat's bondholders and shareholders this month agreed to convert
EUR1.2 billion of the company's debt into equity but talks have
stumbled over the conversion price, the FT notes.

"The bondholders have not yet sat down with the shareholders and
no date has been agreed to do so.  There has been an agreement by
all parties to convert EUR1.2 billion of bonds into equity but
there is still an issue over the conversion price," the FT quotes
one person close to the negotiations as saying.

Seat is one of the most highly leveraged media companies in
Europe with net debt of EUR2.7 billion, the FT discloses.  The
company has EUR1.4 billion of senior debt to pay off before 2014,
the FT notes.  As part of its proposed financial restructuring, a
further EUR600 million of senior debt will be rescheduled, the FT
states.  The first tranche of EUR184.5 million will be pushed
back from 2012 to 2015, the FT.  The second tranche of EUR446
million will be delayed from 2013 to 2016, according to the FT.

Almost half of Seat's equity is owned by a private equity
consortium of Permira, CVC Capital and Investitori Associati, the
FT discloses.  According to the FT, these three groups, which
will see most of their equity investments wiped out, are
understood to want a bond conversion at market prices.  However,
bondholders want a debt for equity conversion at nominal value,
the FT says.

If the bonds were converted at market value the creditors would
control 75% of the company but a conversion at nominal value
would give them 95% control, the FT notes.

Seat was due to pay a EUR52 million coupon to its bondholders on
Tuesday, but the company has said it will withhold payment until
an agreement is reached on the debt restructuring, the FT

The company has been given a one-month extension to negotiate a
plan that would be agreed to by all parties, the FT discloses.
But if an agreement cannot be reached and the EUR52 million
payment is not made Seat will have to file for insolvency, the FT

Seat Pagine Gialle SpA (PG IM) -- is an
Italy-based company that operates multimedia platform for
assisting in the development of business contacts between users
and advertisers.  It is active in the sector of multimedia
profiled advertising, offering print-voice-online directories,
products for the Internet and for satellite and ortophotometric
navigation, and communication services such as one-to-one
marketing.  Its products include EuroPages, PgineBianche,
Tuttocitta and EuroCompass, among others.  Its activity is
divided into four divisions: Directories Italia, operating
through, Seat Pagine Gialle; Directories UK, through TDL
Infomedia Ltd. and its subsidiary Thomson Directories Ltd.;
Directory Assistance, through Telegate AG, Telegate Italia Srl,
11881 Nueva Informacion Telefonica SAU, Telegate 118 000 Sarl,
Telegate Media AG and Prontoseat Srl, and Other Activitites
division, through Consodata SpA, Cipi SpA, Europages SA, Wer
liefert was GmbH and Katalog Yayin ve Tanitim Hizmetleri AS.


MARCO POLO: Asks Bankruptcy Judge for More Restructuring Time
Dow Jones' DBR Small Cap reports that after narrowly winning
court permission to continue restructuring under Chapter 11
bankruptcy protection, Marco Polo Seatrade BV executives asked a
judge for more time to negotiate deals with their biggest
lenders, owed about $207.4 million.

Marco Polo Seatrade B.V. operates an international commercial
vessel management company that specializes in providing
commercial and technical vessel management services to third
parties.  Founded in 2005, the Company mainly operates under the
name of Seaarland Shipping Management and maintains corporate
Headquarters in Amsterdam, the Netherlands.  The primary assets
consist of six tankers that are regularly employed in
international trade, and call upon ports worldwide.

Marco Polo and three affiliated entities filed for Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29,
2011.  The other affiliates are Seaarland Shipping Management
B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V.

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

The filings were prompted after lender Credit Agricole Corporate
& Investment Bank seized one ship on July 21, 2011, and was on
the cusp of seizing two more on July 29.  The arrest of the
vessel was authorized by the U.K. Admiralty Court.  Credit
Agricole also attached a bank account with almost US$1.8 million
on July 29.  The Chapter 11 filing precluded the seizure of the
two other vessels.

Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J.
Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy
counsel.  The cases are before Judge James M. Peck.

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


MOBILE TELESYSTEMS: Moody's Confirms 'Ba2' Corp. Family Rating
Moody's Investors Service has confirmed the corporate family
rating (CFR) and probability of default rating (PDR) of Mobile
TeleSystems OSJC ("MTS"). This concludes the review for downgrade
of MTS's ratings initiated by Moody's on January 25, 2011.

Concurrently, Moody's has confirmed the Ba2 senior unsecured
rating on the US$750 million of loan participation notes due in
2020 and issued by MTS International Funding Ltd. Moody's has
maintained on review for downgrade the senior unsecured rating on
the US$400 million of notes due in 2012 and issued by Mobile
TeleSystems Finance S.A., given that the issuing entity remains
the subject of a legal dispute, which could raise complications
for MTS in its management and administration of this subsidiary's
obligations notwithstanding the fact that the bonds benefit from
a guarantee from MTS.


"Our affirmation of MTS's ratings reflects our view that,
following the company's solicitation of consents from noteholders
and bank lenders, any negative developments at MTS Finance, such
as failure to make a timely payment or bankruptcy, will have
little or no effect on MTS's consolidated financial profile and
liquidity," says Julia Pribytkova, a Moody's Vice President --
Senior Analyst and lead analyst for MTS. "Given MTS's willingness
and capacity to service its financial debt, including the
guaranteed debt of its subsidiaries, Moody's views the
probability of material losses for creditors as modest," adds
Ms. Pribytkova.

Moody's placed MTS's ratings on review for downgrade following
the company's announcement that it made an offer to purchase the
outstanding US$400 million of 2012 notes issued by MTS Finance, a
wholly owned finance subsidiary of MTS registered in Luxembourg.
The notes are guaranteed by MTS. The holders of the US$750
million of 2020 loan participation notes issued by MTS
International Funding, another wholly owned finance subsidiary of
MTS, were asked to consent to the waiver of various specified
clauses in the loan agreement. This was to remove the potential
for cross-default with MTS Finance should it fail to make a
payment of the award made by the London Court of International
Arbitration in favor of Nomihold Securities Ltd. and be forced
into liquidation.

On January 28, 2011, MTS Finance admitted technical default on
the coupon payment, which was however remedied within 10 days.
MTS subsequently called off the tender offer for the 2012 notes,
and focused on collecting consents from the 2012 and 2020
noteholders and the bank lenders. All the relevant consents were
received by 1 April 2011. On July 28, 2011 MTS Finance made the
penultimate coupon payment on time.

However, Moody's has maintained the senior unsecured rating of
the 2012 notes at Mobile TeleSystems Finance S.A on review for
downgrade because of the risks pertaining to the timely execution
of the final coupon payment and redemption of the notes due in 28
January 2012 given the ongoing legal dispute at that entity

Debt Affected:

-- Mobile TeleSystems Finance S.A.'s senior unsecured notes due
    in 2012, rated Ba2, on review for downgrade, with a loss-
    given default assessment of 4 (LGD4/50%)

-- MTS International Funding Limited's loan participation notes
    due in 2020, rated Ba2, with a loss-given default assessment
    of 4 (LGD4/58%)


The principal methodology used in rating Mobile TeleSystems OJSC
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.

Open joint-stock company Mobile TeleSystems ("MTS") is a leading
integrated telecommunications group in Russia. In the last twelve
months to June 30, 2011, the company's revenues amounted to
US$11.97 billion and its EBITDA, as adjusted by Moody's, to
US$4.9 billion (representing a margin of 41.7%). Over the same
period, MTS derived 85.3% of its revenue from its core Russian
operations, 9.2% from Ukraine, 3.7% from Uzbekistan, and 1.7%
from Armenia; 71% of the company's revenue was generated by its
mobile operations in Russia.


IM BANCO: Moody's Assigns 'Caa1' Rating to EUR325MM Series B Note
Moody's Investors Service has assigned definitive ratings to
three series of Notes issued by IM BANCO POPULAR FTPYME 3, FTA:

   -- EUR475M Series A1 Note, Assigned Aaa(sf)

   -- EUR500M Series A2(G) Note, Assigned Aaa(sf)

   -- EUR325M Series B Note, Assigned Caa1(sf)


IM BANCO POPULAR FTPYME 3, FTA is a securitization of loans
mainly granted to micro and small- and medium-sized enterprise
(SME) by Banco Popular (A2/P-1; Possible Downgrade). The
securitization is done under the FTPYME program following the
Spanish Ministry of Economy's allocation of a new guarantee
budget for such transactions for the current year.

At closing, the Fondo -- a newly formed limited-liability entity
incorporated under the laws of Spain -- will issue three series
of rated notes. Banco Popular will act as servicer of the loans,
while Intermoney Titulizacion S.G.F.T., S.A. will be the
management company (Gestora) of the Fondo.

As of September 2011, the provisional asset pool of underlying
assets was composed of a portfolio of 7,322 contracts granted to
companies located in Spain. The assets were originated mainly
between 2007 and 2011. The weighted-average seasoning of the
portfolio is 1.5 years and the weighted-average remaining terms
is 6 years. Around 31% of the outstanding of the portfolio is
secured by first-lien mortgage guarantees over different types of
properties. Geographically, the pool is concentrated mostly in
Madrid (24%), Catalonia (18%) and Andalusia (14%). At closing,
there will be no loans more than 30 days in arrears (arrears 0-30
will represent less than 5%).

In Moody's view, the strong credit positive features of this deal
include, among others: (i) a relatively high percentage of
corporate with annual turnover above EUR50 million (16%); (ii) a
geographically well-diversified pool; and (iii) an up-front
funded reserve fund, representing 15.75% of the total notes
balance, which will be available to make interest payments on
Series A1 and A2(G) during the life of the transaction and can be
used to cover for principal redemption only at the last payment
date or legal final maturity. However, the transaction has
several challenging features: (i) a relatively high exposure to
the construction and building industry sector (33.7% according to
Moody's industry classification); (ii) a high percentage of
bullet loans (18.8%); (iii) high percentage of loans with
principal grace period (5%); and (iv) a low portfolio granularity
(effective number of obligors below 300). These characteristics
were reflected in Moody's analysis and ratings, where several
simulations tested the available 40.75% total credit enhancement
(i.e. notes subordination and reserve fund) for Series A1 and
A2(G) notes to cover potential shortfalls in interest or
principal envisioned in the transaction structure.

Series A2(G) benefits from the guarantee of the Kingdom of Spain
for interest and principal payments. Nevertheless, the expected
loss associated with Series A2(G) notes is consistent with a
Aaa(sf) rating regardless of the Spanish Treasury guarantees

In its quantitative assessment of this transaction, Moody's
assumed a mean default rate of 16.4%, with a coefficient of
variation of 43.9% and a stochastic mean recovery rate of 42.5%.
Moody's also tested other set of assumptions under its Parameter
Sensitivities analysis. For instance, if the assumed mean default
probability was changed to 21.3% and the assumed mean recovery
rate was changed to 32.5%, the model-indicated rating for Series
A1, Series A2(G) and Series B of Aaa(sf), Aaa(sf) and Caa1(sf),
respectively, would have changed toAa2(sf), Aa3(sf) and Caa1(sf)
respectively. For more details, please refer to the full
Parameter Sensitivity analysis included in the New Issue Report
of this transaction.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes (November 2047). In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal on Series A1, A2(G) and B at par on
or before the rated final legal maturity date. 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 V Score for this transaction is Medium/High, which is in line
with the score assigned for the Spanish SME sector and
representative of the volatility and uncertainty in the Spanish
SME sector. V-Scores are a relative assessment of the quality of
available credit information and of the degree of dependence on
various assumptions used in determining the rating. For more
information, the V-Score has been assigned accordingly to the
report "V Scores and Parameter Sensitivities in the EMEA Small-
to-Medium Enterprise ABS Sector," published in June 2009.

The methodologies used in this rating were Moody's Approach to
Rating CDOs of SMEs in Europe published in February 2007,
Refining the ABS SME Approach: Moody's Probability of Default
assumptions in the rating analysis of granular Small and Mid-
sized Enterprise portfolios in EMEA published in March 2009, and
Moody's Approach to Rating Granular SME Transactions in Europe,
Middle East and Africa published in June 2007.

In rating this transaction, Moody's used a combination of its
CDOROM model (to generate the default distribution) and ABSROM
cash-flow model to determine the potential loss incurred by the
notes under each loss scenario. The cash flow model evaluates all
default scenarios that are then weighted considering the
probabilities of the lognormal distribution assumed for the
portfolio default rate. In each default scenario, the
corresponding loss for each class of notes is calculated given
the incoming cash flows from the assets and the outgoing payments
to third parties and noteholders. Therefore, the expected loss or
EL for each tranche is the sum product of (i) the probability of
occurrence of each default scenario; and (ii) the loss derived
from the cash flow model in each default scenario for each

As such, Moody's analysis encompasses the assessment of stressed


SAAB AUTOMOBILE: Business Plan Far From Complete
Dow Jones' Daily Bankruptcy Review reports that the turnaround
plan presented Monday for troubled Swedish car maker Saab
Automobile AB is far from complete, said Martin

Larsson, the company's executive director of new business
development and, according to speculation in Swedish media, the
company's next chief executive.

Saab Automobile AB is a Swedish car manufacturer owned by Dutch
automobile manufacturer Swedish Automobile NV, formerly Spyker
Cars NV.

U N I T E D   K I N G D O M

INMARSAT HOLDINGS: S&P Affirms 'BB+' Corporate Credit Rating
Standard & Poor's Ratings Services revised its outlook to
negative from stable on U.K.-based mobile satellite services
provider Inmarsat Holdings Ltd. and related entities Inmarsat
Investments Ltd. and Inmarsat Ventures Ltd. "At the same time, we
affirmed the 'BB+' long-term corporate credit ratings on Inmarsat
related entities," S&P said.

"We also affirmed the 'BB+' issue rating on the US$650 million
senior unsecured notes issued by parent company Inmarsat PLC's
indirect subsidiary Inmarsat Finance PLC, in line with the
corporate credit rating. The '4' recovery rating on this debt
remains unchanged, indicating our expectation of average
(30%-50%) recovery for creditors in the event of a payment
default," S&P related.

"We have withdrawn our 'BBB' issue rating and '1' recovery rating
on the US$500 million senior secured facilities due 2012 issued
by Inmarsat PLC subsidiary Inmarsat Investments Ltd. as a result
of the early redemption of the US$200 million term loan by the
group at the end of June 2011. The US$300 million revolving
credit facility (RCF) was undrawn at that date and simultaneously
cancelled," S&P related.

"The outlook revision mainly reflects our view that the group's
ongoing investments in its new satellite program and its $250
million share buy-back program are likely to cause a material
decline in free and discretionary cash flows. In turn, we believe
these factors could weaken Inmarsat's financial risk profile,
which we view as 'significant' over the next two to three years.
Substantial negative discretionary cash flows, combined with
potentially weak top-line growth, could result in financial
ratios that are no longer commensurate with the current ratings
in the next 18 months," S&P related.

The outlook revision also factors in our perception of Inmarsat's
now more aggressive financial policy given the significant
increase in shareholder returns, at a time when the group is
incurring high capital deployment at a moment when it is facing
sluggish revenue growth.

"Inmarsat, which we view as having a 'satisfactory' business risk
profile, versus fair previously, is planning to launch three
satellites using Ka-band technology between 2013 and the end of
2014 in order to protect and improve its competitive position in
its main markets. While this US$1.2 billion investment program
should enable the group to roll out competitive higher bandwidth
services to existing and new customers, therefore providing some
scope for future revenue growth once in service, it coincides
with a greater than expected slowdown in MSS revenue trends," S&P

"The negative outlook mainly reflects our view that Inmarsat may
post sizable negative discretionary cash flow over the next few
years, owing to a significant hike in planned investments and
shareholder returns. Combined with our view that meaningful core
MSS growth may take some time to be restored, the group's large
funding requirements, although fully funded in our opinion, could
result in financial ratios no longer commensurate with the
current ratings over the next 18 months. We would view ratio
levels of adjusted gross leverage of under 3.5x and FFO to gross
debt of over 20% as commensurate with the current 'BB+' rating,"
S&P said.

"The outlook also incorporates our assumption that liquidity
should remain adequate in the event of a full or partial exercise
of the put option on Inmarsat's convertible bond, and of
potential financial difficulties at LightSquared, which could
result in Inmarsat not receiving future phase 2 payments under
their common agreement," S&P related.

"We could downgrade Inmarsat if it were to generate prolonged and
significant negative free cash flows over the next few years,
which, combined with shareholder returns, would result in credit
ratios durably below our expectations for the current ratings.
Similarly, we could also lower the ratings if the group's
liquidity were to significantly weaken over the period," S&P

"We could revise the outlook to stable if we believe that the
group's free cash flow generation would be likely to
significantly improve after having troughed in 2012, and if the
group continues posting financial ratios commensurate with the
current ratings over the medium term," S&P related.

JJB SPORTS: Incurs Significant Restructuring Costs; Losses Rise
Rachael Singh at Accountancy Age reports that restructuring at
JJB Sports has cost the business more than GBP100 million in the
past 12 months.

Earlier this year, KPMG organized the retailer's second
insolvency procedure in as many years, Accountancy Age recounts.

JJB Sports entered into a Company Voluntary Arrangement (CVA) in
the first quarter of 2011, Accountancy Age discloses.  According
to Accountancy Age, it has spent GBP107.9 million on exceptional
costs for the 12 months to January 30, 2011, which include
restructuring and implementing the CVA.

According to Accountancy Age, a statement in the accounts said
JJB has "significant exceptional costs associated with the CVA
and restructuring".

In a breakdown of the half-yearly accounts it shows the retailer
spent GBP30.9 million on exceptional costs in the 26 weeks to
July 31, 2011 and GBP2.1 million for the 26 weeks to August 1,
2010, Accountancy Age notes.

Exceptional costs include: goodwill impairment, restructuring and
reorganization costs, net loss of disposal of property, plant and
equipment, impairment of fixed assets of CVA stores and release
of deferred lease incentives, Accountancy Age states.

The retailer has now posted a 177% rise in losses before taxation
of GBP66.5 million to August 31, 2011, compared with GBP24
million for the year ended August 10, 2010, Accountancy Age

As part of the CVA, JJB closed 41 stores, with another two
scheduled to close before the end of the year, Accountancy Age
discloses.  KPMG organized a reduced rental payment of 50% on
certain properties until April 2012, as part of the CVA,
Accountancy Age says.

The company estimates it has so far made a saving of GBP8 million
in rent contributions and GBP5 million in working capital from
closing the stores, Accountancy Age states.

JJB Sports plc is a sports retailer supplying branded sports and
leisure clothing, footwear and accessories.  JJB Sports is a high
street sports retailer, with 250 stores in the United Kingdom and
Eire.  It provides a range of products covering United Kingdom
sports.  The Company stocks all its sports brands, supported by
its own-brand and exclusive ranges.  The Company's segment
includes the Company's retail operations, including any retail
stores, which are attached to fitness clubs.  The Company
operates in two geographic segments: the United Kingdom and Eire.
The Company's subsidiaries include Blane Leisure Limited, Sports
Division (Eireann) Limited, Golf TV Limited, TV Sports Shop
Limited, Original Shoe Company Limited and Qubefootwear Limited.
The Company sold its fitness club operations on March 25, 2009.

JOHN PETERS: Goes Into Liquidation; 55 Workers Lose Jobs
The Press reports that John Peters has gone into liquidation.
The company, which had a 15,000 sq ft superstore at Clifton Moor,
appointed Christopher Brooksbank of O'Hara & Co insolvency
practitioners as liquidator to the company on October 28.

The Press relates that Mr. Brooksbank said in a statement that
all staff have been dismissed. In its last accounts filed to
Companies House for the year ended May 31, 2010, the business
employed 55 people across its sites in York, Hull, Doncaster,
Wakefield and Guiseley.

"I currently do not possess full details of outstanding customer
orders and deposits paid. Once in possession of which I intend to
write to all customers setting out what the position is," the
report quotes Mr. Brooksbank as saying.

John Peters is a Doncaster-based retailer.

OCTAGON HEALTHCARE: S&P Affirms 'BB+' SPUR on GBP341-Mil. Bonds
Standard & Poor's Ratings Services revised the outlook on its
long-term underlying rating (SPUR) on the senior secured
GBP341.33 million bonds (including GBP35 million in variation
bonds) issued by special-purpose vehicle Octagon Healthcare
Funding PLC (OHF) to stable from positive. At the same time, the
long-term SPUR on the bonds was affirmed at 'BB+'.

The bonds have an unconditional and irrevocable guarantee of
payment of scheduled interest and principal from Assured Guaranty
(Europe) Ltd. (AGE; AA+/Watch Neg/--). Under Standard & Poor's
criteria, a rating on monoline-insured debt reflects the higher
of the rating on the monoline and the SPUR. Therefore, the long-
term debt rating on the bonds is 'AA+', and is on CreditWatch
with negative implications.

"The recovery rating on the bonds is unchanged at '1', reflecting
our expectation of very high (90%-100%) recovery in the event of
a default," S&P said.

OHF is a special-purpose vehicle that issued the bonds in
December 2003 and lent the proceeds to Octagon Healthcare Ltd. to
fund the design, construction, and operations of Norfolk and
Norwich University Hospital under a project agreement with the
Norfolk and Norwich University Hospitals National Health Service
Foundation Trust in Norwich, England.

"The outlook revision reflects our view that the project
continues to rely on a supportive financial policy providing for
the reserving of additional cash amounts in the maintenance
reserve account. One element of such reserving is not a
contractual requirement of the project. In addition, the
favorable treatment of another element of the reserving in the
calculation of the project's annual debt service coverage ratios
(ADSCRs) flatters its financial strength, in our opinion.
Although we believe that shareholder and monoline support for the
policy will continue, in our view, the underlying financial
position of the project is not commensurate with an investment-
grade rating," S&P said.

"In our view, the shareholders will limit their distributions so
as to support the continuation of cash reserving. We also
anticipate that the good operational performance of the project
will continue," S&P said.

"We could take a positive rating action if the project's reliance
on the additional cash reserving mechanisms were to fall, for
example, as a result of a downward revision in future lifecycle
expenditure," S&P related.

"We could lower the rating if, for example, increased shareholder
distributions were to result in a lower minimum ADSCR. We could
also lower the rating if there were a downturn in operational
performance, or if a revision to future lifecycle obligations
were to significantly increase the project's forecast cash
outgoings," S&P said.

R&D CONSTRUCTION: Former Workers Win Redundancy Tribunal Payout
BBC News reports that workers who lost their jobs when R&D
Construction collapsed are in line for thousands of pounds
following a tribunal victory.

About 200 staff were affected when the building firm went into
administration earlier this year, the report says.

BBC News relates that the Union of Construction Allied Trades and
Technicians (UCATT) took the firm to an employment tribunal.

According to the report, the tribunal found R&D had failed to
comply with labor relations law, clearing the way for payments to

Harry Frew of UCATT said the money, which would come from the
Insolvency Service, was likely to run into a few thousand pounds
for each of the workers involved, BBC News relates.

Mr. Frew said the union was pleased the tribunal had found in its
favor after no response was received from the company within the
relevant time limit.

Mr. Frew added that the money secured would be in addition to
redundancy payments made earlier this year.

                       About R&D Construction

R&D Construction is based in Dumfries.  It is the main contractor
for a multi-million-pound new-build program in the Dumfries and
Stranraer areas, led by Dumfries and Galloway Housing Partnership

The company went into administration in April this year with the
loss of more that 200 jobs.  Andrew Davison and Colin Dempster of
Ernst & Young were called in as administrators to the firm and
its parent company Robison & Davidson (Holdings).

* UK: Scottish Corporate Insolvencies Up 29% in Third Qtr. 2011
According to The Scotsman's Erikka Askeland, a report by KPMG has
shown that Scottish corporate insolvencies rose 29% and
liquidations were up 33% in the third quarter compared with the
same period last year.

KPMG said smaller firms have been hit the hardest, the Scotsman

The number of administration and receivership appointments made
in Scotland, which usually affect larger businesses with more
than 20 staff, fell by 2% between July and September compared
with the previous quarter, but was up by 5% on the same period
last year, the Scotsman discloses.

The Scotsman relates that Blair Nimmo, head of restructuring for
KPMG in Scotland, said it was "reassuring" the number of larger
firms failing has remained "reasonably stable".

"The good news from the latest figures is that the number of
companies affected by corporate insolvencies is still sitting at
low levels relative to the total population of companies in
Scotland, and below the levels expected when we entered the
recession in 2008," the Scotsman quotes Mr. Nimo as saying.

* UK: Pensions Regulator Widens Probe Into Pre-Packs
Helia Ebrahimi at The Telegraph reports that the pensions
regulator has widened its investigation into controversial
pre-pack administrations beyond private equity backed carpet-
maker Brintons and bed retailer Silentnight.

It is now investigating other "secret" pre-packs where pension
liabilities have been dumped in order to carve outprofitable
assets, the Telegraph discloses.

"We are investigating a series of transactions," the Telegraph
quotes Bill Galvin, chief executive of the pensions watchdog, as
saying.  "There is Brintons and Silentnight, but also other cases
that are not public."

Mr. Galvin would not disclose the details of specific probes but
said the pre-pack phenomena was on the up, the Telegraph relates.

Most industry figures say this is because pension liabilities
have become too big and too volatile for companies to cope, the
Telegraph notes.  This leaves them vulnerable to insolvency, even
when the underlying business is healthy, the Telegraph says.

KPMG said corporate Britain currently faces a GBP295 billion
pension deficit, the Telegraph discloses.


AGROBANK OJSC: Fitch Places 'B-/B' IDRs on Watch Negative
Fitch Ratings has placed OJSC Agrobank's ratings, including its
'B-' foreign currency and 'B' local currency Long-term Issuer
Default Rating (IDRs), on Rating Watch Negative (RWN).

The rating action reflects Fitch's concerns about Agrobank's
financial position, which in particular may be negatively
affected by a potential contingent liability resulting from an
ongoing litigation process.  The bank has not yet published its
IFRS accounts for the financial year 2010, and Fitch understands
that the delay was primarily caused by Agrobank's inability to
determine the appropriate provision for the contingent liability.
While there is significant uncertainty about the extent of any
losses the bank may face, in Fitch's view, the potential negative
impact from the contingent liability may be material enough to
significantly undermine Agrobank's already weak capital position.

Fitch notes that the bank has traditionally operated with
relatively low capital adequacy ratios, which fluctuate during
the year due to the seasonal pattern of the bank's lending
business.  Since June 2011, Agrobank has breached the minimum
regulatory capital adequacy level (10%).  The breaches have been
quite marginal: at end-9M11 the capital ratio was 9.6%, and the
bank became compliant with regulatory requirements after a
substantial loan repayment in October (the ratio increased to
12.3% at October 20, 2011).  However, internal capital generation
has been weak, reflecting the bank's role as a government
instrument for socio-economic policy, and in 9M11 the bank
recorded small operating losses resulting from increased payroll
expenses and some growth in impairment charges.

Agrobank's management has informed Fitch about a potential UZS300
billion equity injection for the bank being discussed at the
government level.  The recapitalization process may start before
the year end, although the bank expects that this will be
executed in several steps during one year.

Fitch will resolve the RWN after receiving more information about
the contingent liability and the expected recapitalization
schedule and assessing whether the planned injection will
sufficiently rectify any weakening of Agrobank's capital position
related to the contingent liability.

The rating actions are as follows:

  -- Long-term foreign currency IDR: 'B-' placed on RWN

  -- Long-term local currency IDR: 'B' placed on RWN

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

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

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

  -- Support Rating: affirmed at '5'

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

AMIRBANK: S&P Assigns 'CCC/C' Counterparty Credit Ratings
Standard & Poor's Ratings Services assigned its 'CCC' long-term
and 'C' short-term counterparty credit ratings to Uzbekistan-
based Amirbank. The outlook is positive.

The ratings reflect Amirbank's weak business position and
marginal market share. They also reflect its intrinsic
vulnerability as a small financial institution in a risky
operating environment, large balance-sheet concentrations,
limited diversity, and unseasoned loan portfolio. Amirbank's
financial performance is weak and constrained by the absence of a
foreign exchange license and high operational expenses.

Although Amirbank has strong capitalization, its capital in
absolute terms is small. This makes it vulnerable to fluctuations
in its operating performance and market conditions. Positively,
the bank has a good knowledge of customers in the Samarkand

Founded in October 2008, Amirbank is a small regional bank based
in the city of Samarkand. It had total assets of Uzbek sum (UZS)
20.6 billion (about US$11 million) as of Sept. 30, 2011.

Amirbank is owned by 18 individuals and eight legal entities. "We
understand that the bank benefits from its shareholders' business
connections and regular capital increases and we factor this
support into its stand-alone credit profile. We do not, however,
include any notches of uplift for extraordinary external support,
either from the shareholders or from the government given
the bank's low systemic importance," S&P related.

Amirbank's main short-term strategic priority is to obtain a
foreign exchange license, which would allow the bank to expand
its customer base by attracting deposits and granting loans
denominated in foreign currency. "We understand that Amirbank is
likely to obtain a foreign exchange license by the end of
2011 or early 2012," S&P said.

"We believe that Amirbank's asset quality is vulnerable given its
unseasoned loan portfolio, expansionary strategy, and weak
customer franchise, as well as tough competition for borrowers
with good credit quality. The bank's currently very low level of
nonperforming loans is not sustainable, in our view. Because
the bank is at an early stage in its development and has a narrow
customer base, it suffers from high concentrations; the 20
leading borrowers accounted for 88% of the loan portfolio as of
Sept. 30, 2011. We do not expect such concentrations to decrease
significantly over the medium term," S&P stated.

Profitability is currently boosted by high net interest margins,
largely due to a high share of no-interest-paying equity.
However, due to a high cost structure and lack of economies of
scale, the bank's earnings are low with a negligible return on
equity of 0.05%.

"The positive outlook reflects our view that Amirbank's business
position will gradually improve as soon as the bank receives a
foreign exchange license, as we expect. This would help to expand
its franchise and client base," S&P related.


* Upcoming Meetings, Conferences and Seminars

Nov. 28, 2011
     18th Annual Distressed Investing Conference
        The Helmsley Park Lane Hotel, New York City
           Contact: 1-240-629-3300

Dec. 1-3, 2011
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800;

April 3-5, 2012
     TMA Spring Conference
        Grand Hyatt Atlanta, Atlanta, Ga.

Apr. 19-22, 2012
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800;

July 14-17, 2012
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800;

Aug. 2-4, 2012
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800;

November 1-3, 2012
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.

Nov. 29 - Dec. 2, 2012
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800;

April 10-12, 2013
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.

October 3-5, 2013
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.


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, Ivy B.
Magdadaro, Frauline S. Abangan and Peter A. Chapman, Editors.

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

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

Information contained herein is obtained from sources believed to
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The TCR Europe subscription rate is US$625 per half-year,
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or balance thereof are US$25 each.  For subscription information,
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                 * * * End of Transmission * * *