TCREUR_Public/111130.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, November 30, 2011, Vol. 12, No. 237

                            Headlines



G E R M A N Y

MANROLAND AG: Investors Express Interest, Administrator Says


G R E E C E

* GREECE: Steering Committee Set Up to Push Forward Rescue Talks


I C E L A N D

HAGAR: Liquidating Bank Gives Firm's Bosses Shares


I R E L A N D

ALLIED IRISH: Mulls Sale of EUR1.4 Billion Property Loans
EIRCOM GROUP: Morgan Stanley Prepares Sale Process
PALMER SQUARE: S&P Lowers Ratings on 13 Note Classes to 'D'
SUPERQUINN: Atradius Ireland Pays Millions to Creditors
ZAPA TECHNOLOGY: New Owner Invests EUR1 Million after Purchase


I T A L Y

BANCA POPOLARE: Fitch Cuts Rating on Upper Tier 2 Debt to 'BB+'
SEAT PAGINE: Restructuring Progresses; Credit Event Under Review
* ITALY: IMF Rules Out Rescue Package Talks


L A T V I A

UAB BITE: S&P Raises Corp. Credit Rating to 'B-'; Outlook Stable


L I T H U A N I A

BANKAS SNORAS: Fitch Cuts Long-Term Issuer Default Rating to 'D'


P O L A N D

CAIXA GERAL: Fitch Downgrades Individual Rating to 'D/E'
* PORTUGAL: Fitch Downgrades Issuer Default Rating to 'BB+'
* PORTUGAL: Fitch Says Corporate Ratings Unaffected by Downgrade


R O M A N I A

* ROMANIA: Retail, Real Estate Firms Most Affected by Insolvency


S L O V E N I A

T-2: Court Rejects Telekom Slovenije Demand for Receivership


S P A I N

BBVA RMBS: Fitch Affirms 'CCC' Ratings on 3 Junior RMBS Tranches
PYMES BANESTO2: Fitch Affirms 'CCsf' Rating on EUR34-Mil. Notes


T U R K E Y

ASYA KATILIM: Fitch Withdraws 'B+' Rating on Sukuk Issue


U N I T E D   K I N G D O M

COSALT PLC: David Ross Says Takeover Offer Not "Opportunistic"
GRACE SCAFFOLDING: Goes Into Administration, 36 Jobs at Risk
ONLINE STAFFING: Court Appoints Provisional Liquidator
TARGET FINC'L.: In Administration on GBP6 Million Keydata Claims
* UK: Creditors May Have to Bear Some of Euro Rebalancing Costs


                            *********


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


MANROLAND AG: Investors Express Interest, Administrator Says
------------------------------------------------------------
Patrick Donahue at Bloomberg News, citing Financial Times
Deutschland, reports that the administrator of Manroland AG said
a number of unidentified investors had expressed interest in the
company.

According to Bloomberg, insolvency administrator Werner
Schneider, as cited by Bloomberg, said it may be easier to
dismantle the company and sell it in smaller parts.  The FTD, as
cited by the FT, said that talks with possible candidates will
begin this week or next week.

Bloomberg relates that the newspaper said the administrator wants
to present new investors by the time the formal insolvency
proceedings begin on Feb. 1.

As reported by the Troubled Company Reporter-Europe on Nov. 28,
2011, Bloomberg News related that Manroland filed for insolvency,
in the Germany's biggest corporate failure since retailer
Arcandor AG collapsed two years ago.  Manroland filed to open
insolvency proceedings with the district court in Augsburg,
Germany, Bloomberg said, citing court spokesman Alfred Schwarz.
Manroland said that Werner Schneider was appointed as insolvency
administrator, Bloomberg disclosed.  "The decision to file for
insolvency was triggered by another dramatic downturn in incoming
orders which can be noticed since mid-July and has recently
accelerated," Bloomberg quotes Manroland as saying in a
statement.  "Customers are finding it far more difficult to
obtain financing in the aftermath of the financial crisis."

Manroland AG is a German printing-machine maker.


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


* GREECE: Steering Committee Set Up to Push Forward Rescue Talks
----------------------------------------------------------------
Reuters reports that banks involved in a rescue plan for Greece
have set up a steering committee to push forward talks on a
voluntary bond exchange before the end of the year.

According to Reuters, the Institute of International Finance
(IIF) said the committee would conduct talks with the Greek and
euro area authorities.

Co-Chairmen of the steering committee are Charles Dallara,
managing director of the IIF, and Jean Lemierre, senior advisor
to BNP Paribas, Reuters discloses.

Investors last month agreed to cut the nominal value of their
bonds by 50%, but have so far failed to agree further details of
the plan, Reuters recounts.


=============
I C E L A N D
=============


HAGAR: Liquidating Bank Gives Firm's Bosses Shares   
--------------------------------------------------
IceNews reports that a group of key owners in Icelandic retail
giant Hagar have made a deal with Arion Banki to keep a share of
the business, despite its having been insolvent and taken over by
the bank.

The report says the deal with Arion will see key executives
keeping a slice of the company worth around ISK330 million
(EUR2.07 million).  They will not pay anything for the shares and
will not need to pay tax on them either, according to the
contract with the bank.

Having made the deal, IceNews relates, Arion will now be able to
sell on the remaining 97.5% of the company.

According to IceNews, Visir.is reported that Arion Banki has not
released any details about which Hagar bosses will be given
shares; but it is known that current president of the company
Finnur Arnason is among them.

The latest reports value Hagar at around ISK13 billion (EUR81.35
million).  The stake being gifted to its former execs is worth
around ISK330 million, and is therefore around 2.5% of the
business, IceNews adds.

As Troubled Company Reporter-Europe on Nov. 26, 2009, the Daily
Telegraph said Kaupthing, now renamed Arion Bank, in 2009
proceeded to seize Hagar's assets, which had been put up as
collateral for a loan to its parent company, called 1998.  The
holding company has debts of ISK60 billion (GBP150 million),
which it cannot service.

Hagar owns retail and wholesale companies in Iceland, Sweden and
Denmark.  Hagar runs Bonus, Hagkaup, Debenhams and 10 to 11
stores in Iceland.   Each of Hagar's companies is run
individually.


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


ALLIED IRISH: Mulls Sale of EUR1.4 Billion Property Loans
---------------------------------------------------------
Ed Hammon and Jamie Smyth at The Financial Times report that
Allied Irish Banks is drawing up plans to sell EUR1.4 billion
(GBP1.2 billion) of property loans made on homes, offices and
shops across Ireland, joining the queue of European banks seeking
to unwind exposure to the Continent's troubled real estate
market.

According to the FT, people familiar with the process said that
the state-controlled lender, which is battling to meet tough
capital requirements introduced this year, is holding a beauty
parade to hire advisers to devise a plan for disposing of the
loans.

The sale would mark a step change for AIB as it looks to reduce
the balance of non-core loans in its portfolio from EUR25.1
billion at the end of 2010 to EUR4.2 billion by the end of 2013
and could open the way for a flurry of disposals, the FT notes.

The FT relates that the people familiar with the process said the
portfolio is made up of EUR1.1 billion of commercial property
loans, at least half of which are understood to be distressed.
The remaining EUR300 million is made up of loans on houses and
apartments spread across the country, most of which are thought
to be performing, the FT states.

Potential advisers are expected to make submissions to AIB by the
middle of this week, the FT says.

                 About Allied Irish Banks, p.l.c.

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

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

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

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

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

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

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


EIRCOM GROUP: Morgan Stanley Prepares Sale Process
--------------------------------------------------
Donal O'Donovan at Irish Independent reports that Eircom Group is
considering putting itself up for sale for the second time in a
month.

It comes after the crisis-hit company received just one takeover
offer when an initial deadline for bids closed on November 18,
Irish Independent relates.

According to Irish Independent, investment bankers from Morgan
Stanley are preparing a sales memorandum for Eircom as part of a
formal auction process being considered by company directors.

It's the latest twist in the long-running struggle between
Eircom's owners and lenders to the company over how to write off
at least EUR1 billion of its EUR3.7 billion of debt, Irish
Independent notes.

Lenders that stand to suffer huge losses say that writing off
debt means they should get control of the company, while Eircom's
current owners are working on a proposal to buy their way back
into the business, Irish Independent discloses.

As reported by the Troubled Company Reporter-Europe on Sept. 16,
2011, The Irish Times related that Eircom's senior lenders agreed
to a three-month waiver of the covenants relating to EUR2.7
billion worth of debt owed to them by the company.  The
waiver prevents a debt default by Eircom and allows the Irish
telecoms group the breathing space to restructure its loans, The
Irish Times said.

Headquartered in Dublin, Ireland, Eircom Group --
http://www.eircom.ie/-- is an Irish telecommunications company,
and former state-owned incumbent.  It is currently the largest
telecommunications operator in the Republic of Ireland and
operates primarily on the island of Ireland, with a point of
presence in Great Britain.


PALMER SQUARE: S&P Lowers Ratings on 13 Note Classes to 'D'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' its credit
ratings on all rated classes in Palmer Square 2 PLC.

"The rating actions follow the confirmation we recently received
from the transaction's trustee that the issuer made no
distribution to noteholders on the scheduled interest payment
date on Nov. 2, 2011. Our actions also take into account the
receivers' notice of disposition dated Nov. 21, 2011, announcing
an auction of collateral assets to be held on Dec. 6, 2011," S&P
said.

"Our ratings on the class X, A1, A2, and A3 notes in Palmer
Square 2 address timely payment of interest. As we now consider
that these classes are in payment default, we have lowered our
ratings on these notes to 'D (sf)'," S&P said.

"We have reviewed the most recently available portfolio
information, based on the trustee's report dated Sept. 30, 2011.
Given the transaction's priorities of payment and the nature and
amount of assets in the portfolio, in our opinion there is no
realistic prospect that proceeds from the collateral auction will
be sufficient for the issuer to make further distributions to the
class B and C noteholders. We have therefore lowered to 'D (sf)'
our ratings on the class B and C notes, given that payments to
noteholders are in jeopardy," S&P said.

"Our analysis indicates that it is likely that the issuer will
ultimately be able to fully repay the class X notes. However, we
do not anticipate full repayment of any other class of notes,"
S&P said.

Palmer Square 2 is a collateralized debt obligation (CDO) with a
portfolio of primarily U.S. structured finance securities. The
transaction closed in October 2005.

Ratings List

Class               Rating
              To              From

Palmer Square 2 PLC
US$2.012 Billion Asset-Backed Floating-Rate Notes

Ratings Lowered

X-1           D (sf)          CCC- (sf)
X-2           D (sf)          CCC- (sf)
A1-M-A        D (sf)          CC (sf)
A1-M-B        D (sf)          CC (sf)
A1-Q-A        D (sf)          CC (sf)
A1-Q-B        D (sf)          CC (sf)
A2-A          D (sf)          CC (sf)
A2-B          D (sf)          CC (sf)
A3-A          D (sf)          CC (sf)
A3-B          D (sf)          CC (sf)
B-1           D (sf)          CC (sf)
B-2           D (sf)          CC (sf)
C             D (sf)          CC (sf)


SUPERQUINN: Atradius Ireland Pays Millions to Creditors
-------------------------------------------------------
The Irish Times reports that credit insurer Atradius Ireland has
paid out "millions" to Superquinn creditors who lost out when the
supermarket chain was placed in receivership.

Superquinn's 900 suppliers lost an estimated EUR25 million to
EUR30 million of the EUR55 million due to them when a group of
banks placed the business in receivership shortly before agreeing
to sell it to franchise operator and wholesaler Musgrave,
according to The Irish Times.

The report notes that a number of suppliers had credit insurance,
covering them against potential losses for goods supplied to
customers who were subsequently unable to pay.

Atradius Ireland spokesman confirmed it has satisfied all valid
claims it received from businesses owed money by the supermarket
chain, The Irish Times discloses.  The report relates that the
spokesman said the company has paid out on "all claims where they
have received the appropriate information from the claimants".

Atradius Ireland is one of a small number of credit insurers
operating in the Republic. It had a number of Superquinn
suppliers on its books.

                         About Superquinn

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

                          *     *     *

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


ZAPA TECHNOLOGY: New Owner Invests EUR1 Million after Purchase
--------------------------------------------------------------
Gordon Smith at The Irish Times reports that Zapa Technology has
been bought out of liquidation and the new owners are investing
EUR1.1 million in the firm.  The new owners said this will create
15 jobs over the next 12 months.

According to the report, technology entrepreneur Brendan McDonagh
has taken a controlling shareholding in the Dublin-based company
and is the new chief executive.  His investment is supported by
Tom Morrisroe, with whom he co-founded in 1999 the telecoms
software firm Arantech.

Funding has also been sourced from Delta Partners and two other
private investors, The Irish Times relates.

As reported in the Troubled Company Reporter-Europe on Oct. 25,
2011, The Irish Times said the board of Zapa Technology appointed
a provisional liquidator to the company after running into
funding difficulties.  The company, founded in January 2009 by
businessman John Nagle, owed more than EUR700,000 to trade
creditors, which it cannot repay.  It had accumulated losses of
EUR6.5 million by the end of September 2010, The Irish Times
disclosed.  Michael McAteer -- michael.mcateer@ie.gt.com -- of
Grant Thornton was appointed provisional liquidator.

Dublin-based Zapa Technology was involved in so-called near-field
communications.  The Zapa Tag can be used to make payments in
stores, collect loyalty points and rewards, redeem coupons and
special offers, pay for tickets on transport, access events, get
information from media sites, and download product details.  It
employed eight staff.


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I T A L Y
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BANCA POPOLARE: Fitch Cuts Rating on Upper Tier 2 Debt to 'BB+'
---------------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
(IDR) and Viability Ratings (VR) of eight Italian mid-sized
banks.  The Outlooks are Negative.  The banks involved in the
rating actions are: Banca Popolare di Sondrio, Credito Emiliano,
Banca Popolare dell'Emilia Romagna, Banca Popolare di Milano,
Credito Valtellinese, Veneto Banca, Banca Popolare di Vicenza and
Banca Popolare dell'Etruria e del Lazio.

The rating actions on the banks' IDRs and VRs reflects Fitch's
view that Italian medium-sized banks face the structural
challenge of operating in a changed environment where operating
profitability has shrunk amid low interest rates and higher
funding costs.  Fitch also expects loan impairment charges to
remain high.  Banks also need to maintain a higher degree of
liquid assets on their balance sheet and operate with higher
capital levels.  The Negative Outlooks reflect Fitch's view that
the operating environment for the banks might deteriorate further
given downside risks in the current market environment.

In October 2011, Fitch sharply revised down its near and medium-
term growth forecasts for Italy, and the agency believes that
Italy is probably already in recession. On October 7, 2011 Fitch
downgraded Italy's rating to 'A+'/Negative, and on October 11,
2011 Fitch took a number of negative rating actions on Italy's
five largest banks.

Asset quality has deteriorated fast for all Italian banks since
2008 amid the domestic recession followed by a slow recovery.
The inflow of new impaired loans slowed down in 2010 and 9M11,
but doubtful loans continue to increase.  Given the weak outlook
for the economy, a renewed acceleration of asset quality
deterioration is a real risk, and increased loan impairment
charges would weigh on the already weakened operating
profitability of the banks.

Italian mid-sized banks have generally maintained sound
structural funding, which benefits from good access to retail
customer funding.  The Italian banking sector saw a significant
issuance of bonds in H111, largely through branch networks, but
also issuance to institutional investors.  In 2012, Fitch expects
Italian mid-sized banks to continue to concentrate their funding
efforts on their customer bases in the absence of access to
wholesale markets.  However, funding costs will increase as
competition for customer deposits has become tougher and because
of the widening spreads on Italian government bonds.
Nevertheless, banks are still able to attract funding at costs
that are well below government bond yields. Maturing amounts
should be manageable for most banks in 2012.

All banks have been focusing on improving their short-term
liquidity for several quarters, including through the lengthening
of funding maturities, reduction of credit lines to larger
corporate clients and the creation of assets that are eligible
for refinancing with the European Central Bank (ECB).  Fitch
considers that ECB utilization is likely to rise further in the
coming quarters as some banks might choose to substitute part of
maturing long-term funding with ECB facilities.

Only one of the Italian rated mid-sized banks increased its
capital in 2011 to date (Banca Popolare di Milano) but all set up
medium-term plans to reinforce capitalization, mostly by issuing
convertible bonds, through internal capital generation and
reduced dividend payout ratios.  The sluggish performance of the
Italian economy and pressure on banks' profits, combined with
international authorities ensuring banks operate with stronger
capital levels, might put pressure on the Italian mid-sized banks
to revise their medium and long-term capital targets upwards and
speed up the implementation of existing plans.

The eight mid-sized banks are trying to become more cost
efficient but Fitch does not see them being able to reduce their
cost bases drastically given their business model that is based
on costly branch networks.

Ultimately, Fitch does not exclude some consolidation in the
medium term among Italian small- and medium-sized banks,
particularly as weaker ones might find it no longer possible to
compete successfully in the new environment.

The rating actions are as follows:

Banca Popolare di Sondrio

  -- Long-term IDR: downgraded to 'A-' from 'A'; Outlook Negative
  -- Short-term IDR: downgraded to 'F2' from 'F1'
  -- Viability Rating: downgraded to 'a-' from 'a'
  -- Individual Rating: downgraded to 'B/C' from 'B'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'

Credito Emiliano

  -- Long-term IDR: downgraded to 'BBB+' from 'A'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'F2' from 'F1'
  -- Viability Rating: downgraded to 'bbb+' from 'a'
  -- Individual Rating: downgraded to 'C' from 'B/C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes and EMTN program: downgraded to
     'BBB+' from 'A'

Banca Popolare dell'Emilia Romagna

  -- Long-term IDR: downgraded to 'BBB' from 'A-'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Viability Rating: downgraded to 'bbb' from 'a-'
  -- Individual Rating: affirmed at 'C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+'
  -- Senior unsecured notes and EMTN program: downgraded to
      'BBB'/'F3' from 'A-'/'F2'
  -- Subordinated notes: downgraded to 'BBB-' from 'BBB+'

Meliorbanca

  -- Long-term IDR: downgraded to 'BBB' from 'A-'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Support Rating: downgraded to '2' from '1'
  -- Senior unsecured debt: downgraded to 'BBB' from 'A-'

Banca Popolare di Milano

  -- Long-term IDR: downgraded to 'BBB' from 'A-'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Viability Rating: downgraded to 'bbb' from 'a-'
  -- Individual Rating: downgraded to 'C' from 'B/C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB+''
  -- Senior unsecured notes and EMTN program: downgraded to
      'BBB'/'F3' from 'A-'/'F2'
  -- Subordinated Lower Tier 2 debt: downgraded to 'BBB-' from
      'BBB+'
  -- Subordinated Upper Tier 2 debt: downgraded to 'BB+' from
      'BBB'
  -- Preferred stock: downgraded to 'BB+' from 'BBB'
  -- Subordinated hybrid capital instruments: downgraded to 'BB+'
      from 'BBB'

Credito Valtellinese

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Viability Rating: downgraded to 'bbb' from 'bbb+'
  -- Individual Rating: affirmed at 'C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes, including notes guaranteed by
      Credito Valtellinese, and EMTN program: downgraded to 'BBB'
      from 'BBB+'

Credito Artigiano

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Support Rating: affirmed at '2'

Bancaperta

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook
     Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Support Rating: affirmed at '2'
  -- The ratings of Bancaperta will be withdrawn after the legal
     completion of the merger of Bancaperta into Credito
     Valtellinese, which is expected on 28 November 2011.

Veneto Banca

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Viability Rating: downgraded to 'bbb' from 'bbb+'
  -- Individual Rating: affirmed at 'C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB''
  -- Senior unsecured notes and EMTN program: downgraded to
      'BBB'/'F3' from 'BBB+'/'F2'
  -- Subordinated Perpetual Tier 1 notes: downgraded to 'BB+'
      from 'BBB-'

Banca Popolare di Vicenza

  -- Long-term IDR: downgraded to 'BBB' from 'BBB+'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'F3' from 'F2'
  -- Viability Rating: downgraded to 'bbb' from 'bbb+'
  -- Individual Rating: affirmed at 'C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes and EMTN program: downgraded to
      'BBB/F3' from 'BBB+/F2'
  -- Market-linked senior notes: downgraded to 'BBBemr' from
      'BBB+emr'
  -- Subordinated Lower Tier 2 notes: downgraded to 'BBB-' from
      'BBB'

Banca Popolare dell'Etruria e del Lazio

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
      Negative
  -- Short-term IDR: downgraded to 'B' from 'F3'
  -- Viability Rating: downgraded to 'bb+' from 'bbb'
  -- Individual Rating: downgraded to 'C/D' from 'C'
  -- Support Rating: affirmed at '3'
  -- Support Rating Floor: affirmed at 'BB'
  -- Senior unsecured notes and EMTN program: downgraded to
      'BB+' from 'BBB'
  -- Subordinated upper Tier 2 Notes: downgraded to 'BB-' from
      'BB+'


SEAT PAGINE: Restructuring Progresses; Credit Event Under Review
----------------------------------------------------------------
Jerrold Colten and Tommaso Ebhardt at Bloomberg News report that
Seat Pagine Gialle SpA investors and "Lighthouse" bondholders
said in a statement on Tuesday that progress has been made in
restructuring the company.

The boards of Permira Funds and Alfieri Associated Investors back
the restructuring plan, according to the statement, saying that
existing investors would get 10% of the company's equity and
Lighthouse bondholders the remainder, Bloomberg discloses.

Bloomberg relates that the statement said existing shareholders
would also be eligible for two tranches of warrants under the
plan.

"The decision to pay the Oct. 30 coupon remains in the sole
discretion of Seat's board of directors," Bloomberg quotes the
statement as saying.

                           Credit Event

In a separate report, Bloomberg News' Abigail Moses relates that
credit-default swap traders have been unable to agree whether a
failure-to-pay credit event occurred on contracts insuring Seat
Pagine's debt.

The swaps ruling will now be passed to an external review panel,
the second such standoff since Determinations Committees of swaps
traders were created in 2009 to make binding decisions for the
market, Bloomberg says.  Then, a three-member panel of
independent arbitrators determined that Cemex SAB, the Mexican
cement maker, had caused a restructuring credit event, Bloomberg
notes.

According to Bloomberg, the International Swaps & Derivatives
Association said on its Web site that eight of the Europe
committee's 15 members, including Deutsche Bank AG, Morgan
Stanley and Pacific Investment Management Co. voted that Seat
Pagine had caused a credit event.

Seven firms including Goldman Sachs Group Inc., JPMorgan Chase &
Co. and BlackRock Inc. voted against the ruling, Bloomberg
states.

As reported by the Troubled Company Reporter-Europe on Nov. 28,
2011, Bloomberg News related that Seat Pagine reached an
agreement in principle on the restructuring of its debt.  Last
month, Seat Pagine said it would take advantage of a 30-day grace
period to skip a EUR52 million coupon payment due Oct. 31 on its
Lighthouse junior bond, Bloomberg recounted.  Under the agreement
reached on Thursday, the coupon will be paid today, Nov. 30,
Bloomberg disclosed.  The company requested that all parties
enter into a "lock-up" agreement to hold their securities,
Bloomberg noted.

                        About Seat Pagine

Seat Pagine Gialle SpA (PG IM) -- http://www.seat.it/-- 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.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Nov. 4,
2011, Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Italy-based international publisher of
classified directories SEAT Pagine Gialle SpA to 'CC' from
'CCC+'.  S&P said that the outlook is negative.


* ITALY: IMF Rules Out Rescue Package Talks
-------------------------------------------
Toru Fujioka and Brendan Murray at Bloomberg News report that the
International Monetary Fund said it isn't discussing a rescue
package with Italy and Japan said no such talks have occurred
within the Group of Seven, amid concern that Italy will struggle
to bring down borrowing costs.

According to Bloomberg, a spokesperson for the fund said on
Sunday in an e-mailed statement that the Washington-based lender
isn't in discussions with Italian authorities on a program for
IMF financing.  Italy's La Stampa newspaper reported that the IMF
may be preparing a loan of as much as EUR600 billion (US$798
billion) to support Italian efforts to restore investor
confidence, Bloomberg recounts.

"The IMF simply does not have the resources" on its own for such
aid, Marc Chandler at Brown Brothers Harriman & Co., chief
currency strategist at the bank in New York, wrote in a note to
clients, according to Bloomberg.  He wrote that it's also unclear
whether the fund would be able to get agreement on leveraging its
lending capacity to such a degree, Bloomberg notes.

Italy has seen yields on its benchmark 10-year government bonds
soar above 7% this month as investor skepticism about the nation
being able to sustain its debt load deepened, Bloomberg relates.
Mr. Chandler, as cited by Bloomberg, said that aid of about
EUR600 billion would "essentially" allow Prime Minister Mario
Monti's administration to stay out of the capital markets for 12
to 18 months as it implemented fiscal tightening and sought to
win back bondholders' confidence.

According to Bloomberg, a Japanese government official said that
Japan's government isn't sure whether Italy wants a EUR600
billion IMF rescue.


===========
L A T V I A
===========


UAB BITE: S&P Raises Corp. Credit Rating to 'B-'; Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Lithuania-headquartered mobile
telecommunications operator UAB Bite Lietuva and its 100% owner
Bite Finance International B.V. to 'B-' from 'CCC'. The outlook
is stable.

"At the same time, we raised the rating on Bite Finance
International's outstanding subordinated notes to 'CCC+' from
'CCC-' and the rating on the group's EUR172 million senior
secured notes to 'B-' from 'CCC'," S&P said.

"The upgrades reflect the improvement in Bite's liquidity, which
we now view as 'adequate', thanks to minimal short-term debt
maturities in 2012 and 2013, increased covenant headroom, and
positive free operating cash flow (FOCF) generation. It also
reflects Bite's strengthened operating performance, including
profitability improvement. The adjusted EBITDA margin for the
last 12 months was 23.7% on Sept. 30, 2011, up from 22.2% for
full-year 2010," S&P related.

"In our base-case assessment, we assume that Bite will be able to
sustain its recent improvement in profitability and turnaround of
the previously loss-making Latvian operations, that liquidity
will remain adequate as debt repayments due in 2012 and 2013 are
limited, and that FOCF will increase," S&P said.

"Despite those improvements, however, the ratings remain
constrained by Bite's 'highly leveraged' financial risk profile
and 'vulnerable' business risk profile. The main weaknesses for
the business risk profile in our view are the severe competition
from local players that belong to large Nordic operators
TeliaSonera AB (A-/Stable/A-2) and Tele2 AB (not rated), still
low profitability, and volatility in the Lithuanian and Latvian
economies," S&P related.

"The ratings benefit from the well-established Lithuanian
operations, where Bite's market share has stabilized over the
past two years; a growing position in Latvia, which Bite entered
in 2005; a relatively benign regulatory environment, despite
recent interconnect call termination price cuts; and our
expectation of growing FOCF over the next two years, which could
be directed toward debt reduction," S&P said.

"The stable outlook reflects our opinion that Bite will maintain
comfortable covenant headroom, report an increasing EBITDA
margin, and reduce debt to less than 5x EBITDA, with the
potential to deleverage further thanks to expected FOCF growth
over the next two years," S&P related.

"We could lower the ratings if the EBITDA margin fell nearer to
20%, because it could pressure liquidity and covenant headroom or
if revenues declined either on lower market share or on negative
macroeconomic developments. A downgrade could also result if the
company fails to refinance the EUR172 million senior secured
notes due 2014 before midyear 2013," S&P said.

"Ratings upside is unlikely in the next 12 months, in our view,
as it would require meaningful improvement in profitability and a
decrease in the debt-EBITDA ratio to 4x, which we don't think
Bite would be able to achieve in the near term," S&P said.


=================
L I T H U A N I A
=================


BANKAS SNORAS: Fitch Cuts Long-Term Issuer Default Rating to 'D'
----------------------------------------------------------------
Fitch Ratings has downgraded Lithuania-based Bankas Snoras's
Long-term Issuer Default Rating (IDR) to 'D'.  At the same time,
all of the bank's ratings have been withdrawn.

The downgrade reflects the decision by the Bank of Lithuania
(BoL) to revoke Snoras' license and to file for its bankruptcy.
The BoL has indicated that the investigation of the bank's
temporary administrator revealed that the financial position of
the bank is significantly worse than previously expected.  The
ultimate decision to liquidate Snoras is dependent on court
approval.  However Fitch believes that an alternative scenario is
unlikely.

The BoL estimated that about LTL4.1 billion of the bank's
customers deposits (both legal and natural persons), or about 55%
of its outstanding unconsolidated liabilities at end-Q311, are
covered by the government's deposit guarantee insurance scheme.
Fitch understands that BoL's initial estimate of the haircut for
creditors not covered by the government insurance is very high
and any potential recoveries would be modest, if any.

The rating actions are as follows:

  -- Long-term foreign currency IDR: downgraded to 'D' from 'C'
     and withdrawn

  -- Short-term foreign currency IDR: downgraded to 'D' from 'C'
     and withdrawn

  -- Viability Rating: affirmed at 'f' and withdrawn

  -- Individual Rating: affirmed at 'F' and withdrawn

  -- Support Rating: affirmed at '5' and withdrawn

  -- Support Rating Floor: affirmed at 'NF' and withdrawn


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


CAIXA GERAL: Fitch Downgrades Individual Rating to 'D/E'
--------------------------------------------------------
Fitch Ratings has downgraded debt issues guaranteed by the
Republic of Portugal under its government-guaranteed issuance
scheme to 'BB+' from 'BBB-', mirroring the rating action taken on
Portugal's sovereign rating.

Fitch has downgraded the Long-term IDRs and Support Rating Floors
(SRFs) of Caixa Geral de Depositos (CGD), Banco Comercial
Portugues (Millennium bcp) and Banco BPI, to 'BB+' from 'BBB-'and
the Short-term IDRs to 'B' from 'F3'.  The IDRs and SRF of Caixa
Economica Montepio Geral (Montepio Geral) and Banif - Banco
Internacional do Funchal (Banif) have been affirmed at 'BB' and
'B', respectively.  The Outlook for all five banks is Negative in
line with that of the sovereign. Any further downgrade of
Portugal's sovereign rating would trigger a further downgrade of
the Long-term IDRs and SRFs of CGD, Millenium bcp and Banco BPI.
The IDRs and SRFs of Montepio and Banif might only be downgraded
if Portugal was downgraded by more than one notch.

The five Portuguese banks' Long-term IDRs remain at their SRF
based on Fitch's assessment of available sovereign and/or
international support.  A EUR12 billion capital support package
is available to the Portuguese banks as part of an IMF/EU support
package.  The downgrade of the Long-term IDRs, SRFs and Support
Ratings of CGD, Millenium bcp and Banco BPI are the direct
consequence of Portugal's sovereign downgrade.

Fitch has also downgraded the VRs of CGD, Millenium bcp and Banco
BPI.  For all banks, this reflects Fitch's view that the banks
need to strengthen capitalization but that their flexibility to
do so is likely to become increasingly constrained, particularly
due to the weakening economic environment and likely worsening of
earnings and asset quality.  The downgrades also reflect the
continuing extremely challenging funding environment, which is
likely to increase pressure on these banks' funding and liquidity
profiles, despite recent success in improving the proportion of
loans that are funded by deposits.

As a result of the above rating actions, senior, subordinated and
hybrid debt issued by CGD, Millennium bcp and Banco BPI have been
downgraded.  The rating of hybrid capital instruments reflects
the increasing risk of non-performance, whether due to the banks'
weakening financial condition or, should the banks need to resort
to capital support from the authorities, losses being enforced
under the EU state aid burden-sharing concept.  Under Fitch's
criteria, hybrid non-performance can arise in a number of ways,
including coupon deferral or omission or if a tender or exchange
offer is considered to be a distressed debt exchange.

CGD benefits from its strong retail franchise and dominant market
share of deposits, which has been supportive of its funding
profile (net loans/deposits ratio of 126% as per Bank of Portugal
(BoP) at end-Q311).  However, CGD's overall performance
deteriorated in Q311 and this is likely to continue.  Under BoP's
more stringent non-performing loan (NPL) definition, its reported
'credit at risk' or new NPL ratio deteriorated to 6.3% at end-
Q311 from 4.2% at end-2010.  It is faced with the challenge of
meeting sizeable debt maturities until 2013 (around 7.5% of total
assets) as well as increasing regulatory core capital from 8.4%
at end-Q311 to 9% by year-end.  CGD plans to sell its insurance
business and equity stakes to improve capital.

CGD's subsidiary Caixa - Banco de Investimento is the investment
banking arm of the group and is fully integrated.  As such, its
IDRs are in line with its parent's, reflecting a moderate
probability of support.

Millennium bcp faces various challenges due to a comparatively
weak position in terms of funding and liquidity and credit risk.
The bank had a net loans/deposits ratio of 154% (as per BoP) at
end-Q311 and a high reliance on ECB funding (16% of total asset
at end-Q311).  Furthermore, it has sizeable debt maturities until
2013 (5% of end-Q311 total assets) which compares with a lower
level of unencumbered ECB eligible assets (3.6%).  Its credit at
risk ratio is the weakest among its peers at 9.5% at end-Q311.
If recent measures to improve capital are considered, its
regulatory core capital would be 9.1%.  However, further capital
will be needed to offset the capital shortfall arising from fair
valuing its Portuguese sovereign exposure.

Banco BPI's capital levels are under greater pressure than some
of its peers after considering the comparatively higher capital
shortfalls arising from fair valuing its large sovereign debt
exposure. However, the bank compares favorably with regards to
asset quality and funding and liquidity.  At end-Q311, its credit
at risk ratio was 3.2% and its net loans/deposits ratio was 115%
(as per BoP) at end-Q311. The bank has limited reliance on ECB
funding and sufficient unencumbered ECB eligible assets to cover
its medium-term refinancing needs until 2013 (6% of total
assets).

Banco Portuguese de Investimento's is the investment banking arm
of the group and it is fully integrated.  As such, its IDRs are
in line with its parent's, reflecting a moderate probability of
support.

Fitch has placed the VRs of Montepio and Banif on Rating Watch
Negative, reflecting the agency's concerns over the effect on
their standalone risk profiles of the worsening economic outlook
and tough financial markets.  The RWNs are expected to be
resolved in the near term.

The ratings actions are as follows:

CGD:

  -- Long-term IDR: downgraded to 'BB+' from 'BBB-'; removed from
     RWN; Outlook Negative

  -- Short-term IDR: downgraded to 'B' from 'F3', removed from
     RWN

  -- Viability Rating downgraded to 'b+' from 'bb'

  -- Individual Rating: downgraded to 'D/E' from 'C/D'

  -- Support Rating downgraded to '3' from '2', removed from RWN

  -- Support Rating Floor: revised to 'BB+' from 'BBB-', removed
     from RWN

  -- Senior unsecured debt long-term rating: downgraded to 'BB+'
     from 'BBB-', removed from RWN

  -- Senior unsecured debt short-term rating: downgraded to 'B'
     from 'F3', removed from RWN

  -- Senior unsecured certificate of deposit long-term rating:
     downgraded to 'BB+' from 'BBB-', removed from RWN

  -- Senior unsecured certificate of deposit short-term rating:
     downgraded to 'B' from 'F3', removed from RWN

  -- Commercial paper program: downgraded to 'B' from 'F3',
     removed from RWN

  -- Lower Tier 2 subordinated debt issues: downgraded to 'BB'
     from 'BB+', removed from RWN

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

  -- Senior debt guaranteed by the Portuguese state: downgraded
     to 'BB+' from 'BBB-', removed from RWN

Caixa -Banco de Investimento:

  -- Long-term IDR: downgraded to 'BB+' from 'BBB-'; removed from
     RWN; Outlook Negative

  -- Short-term IDR: downgraded to 'B' from 'F3', removed from
     RWN Support Rating downgraded to '3' from '2', removed from
     RWN

CGD North America Finance LLC

  -- Commercial Paper downgraded to 'B' from 'F3', RWN removed

Millennium bcp:

  -- Long-term IDR: downgraded to 'BB+' from 'BBB-'; removed from
     RWN; Outlook Negative

  -- Short-term IDR: downgraded to 'B' from 'F3', removed from
     RWN

  -- Viability Rating downgraded to 'b' from 'bb-';

  -- Individual Rating: downgraded to 'D/E' from 'C/D'

  -- Support Rating downgraded to '3' from '2', removed from RWN

  -- Support Rating Floor: revised to 'BB+' from 'BBB-', removed
     from RWN

  -- Senior unsecured debt long-term rating: downgraded to 'BB+'
     from 'BBB-', removed from RWN

  -- Senior unsecured debt short-term rating: downgraded to 'B'
     from 'F3', removed from RWN

  -- Commercial paper programme: downgraded to 'B' from 'F3',
     removed from RWN

  -- Lower Tier 2 subordinated debt issues: downgraded to 'BB'
     from 'BB+', removed from RWN

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

  -- Senior debt guaranteed by the Portuguese state: downgraded
     to 'BB+' from 'BBB-', removed from RWN

Banco BPI:

  -- Long-term IDR: downgraded to 'BB+' from 'BBB-'; removed from
     RWN; Outlook Negative

  -- Short-term IDR: downgraded to 'B' from 'F3', removed from
     RWN

  -- Viability Rating downgraded to 'b' from 'bb'

  -- Individual Rating: downgraded to 'D/E' from 'C/D'

  -- Support Rating downgraded to '3' from '2', removed from RWN

  -- Support Rating Floor: revised to 'BB+' from 'BBB-', removed
     from RWN

  -- Senior unsecured debt long-term rating: downgraded to 'BB+'
     from 'BBB-', removed from RWN

  -- Senior unsecured debt short-term rating: downgraded to 'B'
     from 'F3', removed from RWN

  -- Commercial paper program: downgraded to 'B' from 'F3',
     removed from RWN

  -- Lower Tier 2 subordinated debt issues: downgraded to 'BB'
     from 'BB+', removed from RWN

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

  -- Market linked securities: downgraded to 'BB+ (emr)' from
     'BBB-(emr)', removed from RWN

Banco Portugues de Investimento:

  -- Long-term IDR: downgraded to 'BB+' from 'BBB-', removed from
     RWN; Outlook Negative

  -- Short-term IDR: downgraded to 'B' from 'F3', removed from
     RWN

  -- Support Rating: downgraded to '3' from '2', removed from RWN

Banif - Banco Internacional do Funchal:

  -- Long-term IDR affirmed at 'BB', Outlook Changed to Negative
     from Stable

  -- Short-term IDR affirmed at 'B'

  -- Viability Rating of 'b+' placed on RWN

  -- Individual Rating: of 'D' placed on RWN

  -- Support Rating affirmed at '3'

  -- Support Rating Floor affirmed at 'BB'

  -- Senior unsecured debt long-term rating affirmed at 'BB'

  -- Senior unsecured debt short-term rating affirmed at 'B'

  -- Lower Tier 2 subordinated debt issues affirmed at 'BB-'

  -- Preference shares of 'B-' placed on RWN

  -- Senior debt guaranteed by the Portuguese state downgraded to
     'BB+' from 'BBB-', removed from RWN

Montepio Geral:

  -- Long-term IDR affirmed at 'BB', Outlook Changed to Negative
     from Stable

  -- Short-term IDR affirmed at 'B'

  -- Viability Rating of 'bb-'; placed on RWN

  -- Individual Rating of 'C/D' placed on RWN

  -- Support Rating affirmed at '3'

  -- Support Rating Floor affirmed at 'BB'

  -- Senior unsecured debt long-term rating affirmed at 'BB'

  -- Senior unsecured debt short-term rating affirmed at 'B'

  -- Subordinated debt affirmed at 'BB-'

The rating impact, if any, from the above rating actions on
Millennium bcp's foreign subsidiaries as well as on Portuguese
banks' securitization transactions and covered bonds will be
detailed in separate comments.


* PORTUGAL: Fitch Downgrades Issuer Default Rating to 'BB+'
-----------------------------------------------------------
Fitch Ratings has downgraded Portugal's Long term foreign and
local currency Issuer Default Ratings (IDR) to 'BB+' from 'BBB-'
and Short-term IDR to 'B' from 'F3'.  The Rating Watch Negative
(RWN) on the long-and short-term ratings has been removed.  The
Outlook is Negative. The agency has also affirmed its Country
Ceiling at 'AAA'.  Fitch has also downgraded Portugal's senior
unsecured debt to 'BB+' and commercial paper to 'B', and removed
both from RWN.

Fitch has concluded its fourth-quarter review of Portugal's
sovereign rating, resolving the RWN in place since April 2011.
The country's large fiscal imbalances, high indebtedness across
all sectors, and adverse macroeconomic outlook mean the
sovereign's credit profile is no longer consistent with an
investment-grade rating.

Fitch has lowered Portugal's growth forecasts in light of the
worsened European outlook.  The agency now expects GDP to
contract by 3% in 2012.  Significant structural reforms expected
under the program should leave Portugal in a more competitive
position in the long term.

Over the next two years, the recession makes the government's
deficit-reduction plan much more challenging and will negatively
impact bank asset quality.  However, Fitch judges the
government's commitment to the program to be strong.

Fitch expects the official deficit target of 5.9% to be met this
year, albeit with significant recourse to one-off measures.  The
most significant of these will be the transfer of bank pension
schemes to the public sector, booking an upfront gain of up to
1.7% of GDP.

The 2012 budget contains significant expenditure reductions,
mainly on pensions and civil service pay.  The budget is well-
designed and is based on reasonable GDP assumptions.  Fitch
therefore expects the 4.5% deficit target for 2012 to be met.
However, the risk of slippage -- either from worse macroeconomic
outturns or insufficient expenditure control -- is large.
Fitch's base case is that general government debt will increase
from 93.3% of GDP at end-2010 to around 110% at end-2011 and peak
at around 116% at end-2013.

The state-owned enterprise sector is another key source of fiscal
risk and has been responsible for several upward revisions to the
general government debt and deficit figures over the past year.
Given these downside risks, Fitch sees a significant likelihood
that further consolidation measures will be needed through the
course of 2012.

The current account deficit (CAD) was 9.9% of GDP in 2010, near
its (exceptionally high) 10-year average, and net external debt
was 78% of GDP.  The return to recession in 2011 marks the start
of a long-delayed external adjustment, with resources shifting
away from consumption towards exports.  Fitch expects the CAD to
narrow to 7.5% in 2011.

The sovereign crisis poses significant risks to the banking
system, which lends to one of the most indebted private sectors
in Europe and is highly reliant on wholesale financing (access to
which is now closed off).  Recapitalization and increased
emergency liquidity provision from the ECB to Portugal's banks
will, in Fitch's view, be needed and provided.

A worse economic and/or fiscal performance than forecast could
lead to a further downgrade.  Furthermore, although Portugal is
funded to end-2013, sovereign liquidity risk may increase
materially towards the end of the program if adverse market
conditions persist.

Successful economic and fiscal rebalancing under the IMF/EU
program would ease downward pressure on the rating.  Improvement
in Portugal's potential growth rate would improve the sovereign's
credit profile over the long-term.


* PORTUGAL: Fitch Says Corporate Ratings Unaffected by Downgrade
----------------------------------------------------------------
Fitch Ratings says that following its downgrade of Portugal's
Long-term foreign currency rating to 'BB+'/Negative Outlook (see
'Fitch Downgrades Portugal to 'BB+' from 'BBB-'; Outlook
Negative'), its Portuguese corporate ratings are unchanged.
The following entities' ratings are unaffected:

EDP-Energias de Portugal, S.A.'s (EDP) and EDP Finance B.V.'s
Long-term Issuer Default Ratings (IDR) and senior unsecured
ratings are 'BBB+'/Rating Watch Negative (RWN). Both entities'
Short-term IDRs of 'F2' are also on RWN.

Hidroelectrica del Cantabrico, S.A.'s (HC, wholly-owned by EDP)
Long-term IDR of 'BBB+' and its Short-term IDR of 'F2' are on
RWN.

Portugal Telecom's (PT) IDR is 'BBB'/Negative.  The senior
unsecured rating of Portugal Telecom Finance International BV's
bonds are 'BBB.'

Although EDP remains part-owned by the state, pending the
privatization process of up to 21.35% of the Portuguese
government's stake, the above companies' ratings do not embed any
element of central government support.  Fitch continues to review
the effect upon each issuer of ongoing and related austerity
measures, and adverse effects upon the domestic banking systems.

Fitch established in its report "Eurozone Sovereign Pressures and
Corporates", dated April 5, 2011, that certain corporates can be
rated above their respective eurozone sovereign.  The degree of
stretch from the sovereign rating depends on factors such as the
company's wholly domestic or international diversification.

Fitch has already stated that a potential one-notch sovereign
downgrade of Portugal to 'BB+' would not result in an automatic
downgrade of EDP's rating to 'BBB' (see "Fitch Maintains EDP and
Hidrocantabrico's 'BBB+' on RWN" dated November 14, 2011).  The
current RWN reflects the effect of a tariff deficit resulting
from the Portuguese Energy Services Regulator's proposal to defer
EDP's collection from the special regime generation in 2012 and
deviations in the CMEC compensation mechanism. Both changes in
regulation need to be confirmed by the end of December 2011,
after which Fitch expects to resolve EDP's RWN.  Using the
guidance in the above Fitch report, any potential further
downgrade of Portugal's sovereign rating would also result in a
one notch downgrade of EDPs 'BBB+' ratings.

EDP had adequate liquidity of over EUR4 billion at end-September
2011, including cash and available bank facilities.  This largely
covers the company's refinancing needs in the next 18 months but
the company will have to tap the market to cover 2013 debt
maturities.

Portugal Telecom's Negative Outlook already reflects the
uncertainties facing the company in its home market, in
particular the increased likelihood that consumer behavior will
be adversely affected.  Fitch's current rating case assumptions
already build in a fair degree of caution for this type of
reaction with around 5% declines for both fixed and mobile
service revenues in 2012 (after an assumed 9% decline in domestic
revenue in 2011) and only slow recovery towards a flat position
in 2013.  Fitch will continue to monitor the situation in 2012
for any acceleration of domestic pressures which may cause
current rating case assumptions to breach Fitch's stated net debt
to EBITDA target metric of 3x for PT.  Such pressures are likely
to lead to a downgrade unless a path to deleveraging in the short
term is clear.

PT has strong liquidity.  Fitch believes that its refinancing
requirements have been addressed through to 2014.


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


* ROMANIA: Retail, Real Estate Firms Most Affected by Insolvency
----------------------------------------------------------------
Romanian news agency ACTmedia reports that Transylvania
Insolvency House (CITR) said that companies in retail, real
estate and industry (including production equipment,
pharmaceuticals, agri-food, etc.) are most affected by
insolvency, and the main cause is lack of funding, directly
correlated with a lower consumption of the population.

In retail, the main difficulty faced by companies in ongoing
insolvency proceedings is the lack of capital to finance
inventory, in conditions of a rigid cost structure and strong
seasonal activities, ACTMedia relays.

According to the report, Andrea Anghelof, CITR managing partner,
said in terms of real estate projects, a growing number of
projects started in 2006-2008 were stopped by investors, many of
them giving up development projects still in an early stage.

In addition to lack of funding, retail and real estate fields are
also affected by a lower consumption of the population and
consequently of a shrinked demand for real estate property.

In the area of industry there are relatively few big names in
ongoing insolvency, in conditions in which the managers of such
companies unduly fear that the association of their brand with
insolvency proceedings could affect their market position.

According to CITR representatives, most attractive companies for
investors appear to be those active in industry. One reason is
more reliable and faster gains than in real estate.


===============
S L O V E N I A
===============


T-2: Court Rejects Telekom Slovenije Demand for Receivership
------------------------------------------------------------
STA News reports that the Maribor District Court has rejected
Telekom Slovenije's demand for receivership at rival T-2.

The court confirmed the debt restructuring plan in line with
which creditors of T-2 are to be repaid 44% of their claims
totaling around EUR180 million by 2020, according to STA News.

T-2 is a telecommunication services provider.


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


BBVA RMBS: Fitch Affirms 'CCC' Ratings on 3 Junior RMBS Tranches
----------------------------------------------------------------
Fitch Ratings has placed 11 tranches of three BBVA RMBS
transactions on Rating Watch Negative (RWN).  The agency has also
affirmed the 'CCCsf' rating on the three deals' junior tranches.

The RWN reflects Fitch's concern over the high volume of losses
realized on foreclosed properties over the past two years.  In
its attempt to decrease the volume of properties currently on the
balance sheet of the special purpose vehicle, BBVA has opted for
the quick sale of properties, at sometimes high discounts.  Fitch
understands that the properties are being sold to third parties,
unlike a few other originators who have been buying the
properties and placing them on their own balance sheets.  In a
declining house price environment, the quick sale of properties
is typically viewed as a positive, as it reduces the cost to the
securitizations of carrying defaulted loans.  The limited
mortgage availability and demand for properties has led to assets
being sold at significant discounts to their original valuations,
limiting the amount of recoveries.

At present, two of the three deals have technical principal
deficiency balances outstanding, equivalent to 0.03% and 5.2% of
the outstanding note amount of BBVA RMBS 2 and 3 respectively.
Meanwhile, the reserve fund of BBVA RMBS 1 stands at 6.8% of its
target amount.

The pools comprise high loan-to-value ratio loans and include
some mortgages granted to foreign borrowers and those employed on
temporary contracts.  Fitch recognises there is a divergence
between the performances of the three pools.  BBVA RMBS 1 and 2
mainly comprise loans originated before 2006, which have
performed better than the 2006 vintage loans that dominate the
BBVA RMBS 3 pool.  This is also reflected in the level of
cumulative defaults across the three deals, which as of September
2011 stood at 2.4% and 2.9% of initial pool balance in BBVA RMBS
1 and 2, respectively, compared to 6.8% (August 2011) in BBVA
RMBS 3.

The agency will aim to resolve the RWN by January 2012.  It will
request further information from the management company (gestora
Europea de Titulizacion) to determine whether the past
performance of these transactions is indicative of the future
performance of the remaining loans in the portfolios.

The rating actions are as follows:

BBVA RMBS 1, Fondo de Titulizacion de Activos:

  -- Class A2 (ISIN ES0314147010) 'AA-sf'; on RWN;
  -- Class A3 (ISIN ES0314147028) 'AA-sf'; on RWN;
  -- Class B (ISIN ES0314147036) 'BBBsf'; on RWN;
  -- Class C (ISIN ES0314147044) affirmed at 'CCCsf'; Recovery
     Estimate 0%

BBVA RMBS 2, Fondo de Titulizacion de Activos:

  -- Class A2 (ISIN ES0314148018) 'AAsf'; on RWN;
  -- Class A3 (ISIN ES0314148026) 'AAsf'; on RWN;
  -- Class A4 (ISIN ES0314148034) 'AAsf'; on RWN'
  -- Class B (ISIN ES0314148042) 'BBBsf'; on RWN;
  -- Class C (ISIN ES0314148059) affirmed at 'CCCsf'; Recovery
     Estimate 0%

BBVA RMBS 3, Fondo de Titulizaction de Activos

  -- Class A1 (ISIN ES0314149008) 'Asf'; on RWN;
  -- Class A2 (ISIN ES0314149016) 'Asf'; on RWN;
  -- Class A3 (ISIN ES0314149024) 'Asf'; on RWN;
  -- Class B (ISIN ES0314149032) 'Bsf'; on RWN;
  -- Class C (ISIN ES0314149040) affirmed at 'CCCsf'; Recovery
     Estimate 0%


PYMES BANESTO2: Fitch Affirms 'CCsf' Rating on EUR34-Mil. Notes
---------------------------------------------------------------
Fitch Ratings has affirmed all three classes of FTA Pymes
Banesto2, removed the notes from Rating Watch Negative (RWN) and
assigned a Stable Outlook to class A2 as follows:

  -- EUR270,287,715 class A2 (ISIN ES0372260010) affirmed at
     'BBB- sf'; removed from RWN; assigned Stable Outlook

  -- EUR24,300,000 class B (ISIN ES0372260028) affirmed at 'Bsf';
     removed from RWN; assigned Negative Outlook

  -- EUR34,000,000 class C (ISIN ES0372260036) affirmed at
     'CCsf'; removed from RWN; assigned recovery estimate RE30%

The rating actions resolve the RWN status assigned in August 2011
due to insufficient data provided by the originator for Fitch to
conduct its surveillance analysis.  The originator subsequently
provided portfolio level data with all the fundamental fields
required for Fitch to evaluate default, correlation and recovery
stresses.

The transaction's performance has been worsening with the 90-day+
delinquency rate increasing to 4.25% of the outstanding portfolio
balance as of the September 2011 investor report.  Default levels
continue to increase with current defaults at 5.78%.  Fitch
expects defaults to increase further through the medium term
given the high volume of impairments in the delinquency pipeline,
some of which are likely to migrate into default.  The reserve
fund has rapidly decreased over the past year and is now
significantly underfunded (6% of its required amount).  However
credit enhancement (CE) levels for class A2 notes have been
increasing, due to the structural deleveraging, and are higher
than the agency's 'BBB-' loss expectation.

The affirmation and Negative Outlook on the class B note reflects
concerns about rising delinquency levels, industry concentration
in real estate and increased vulnerability to additional
defaults.  The affirmation of the class C notes at 'CCsf'
reflects their failure to withstand Fitch's obligor stresses and
their subordinated position in the capital structure.

FTA Pymes Banesto 2 is a cash flow securitization of an initially
revolving and now static pool of traditional secured and
unsecured SME loans granted by Banco Espanol de Credito SA
(Banesto;'AA-'/Negative/'F1+').  The fund is managed by Santander
de Titulizacion.


===========
T U R K E Y
===========


ASYA KATILIM: Fitch Withdraws 'B+' Rating on Sukuk Issue
--------------------------------------------------------
Fitch Ratings has withdrawn Asya Katilim Bankasi A.S.'s proposed
Sukuk issue's expected rating of 'B+(EXP).  Asya is no longer
going ahead with the process due to adverse market conditions.

Fitch currently rates Asya as follows:

Asya Katilim Bankasi A.S.:

  -- Long-term foreign currency and local currency IDR: 'B+'
     Outlook Stable
  -- Short-term foreign currency and local currency IDR: 'B'
  -- National Long-term rating: 'A-(tur)' Outlook Stable
  -- Viability Rating: 'b+'
  -- Support Rating: '5'
  -- Support Rating Floor: 'NF'
  -- Individual Rating: 'D'


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


COSALT PLC: David Ross Says Takeover Offer Not "Opportunistic"
--------------------------------------------------------------
Alistair Gray at The Financial Times reports that David Ross, co-
founder of Carphone Warehouse, has denied that he is making an
"opportunistic attempt to run off" with Cosalt plc as two big
shareholders in the offshore safety group spoke out against his
offer valuing the equity at just GBP400,000 (US$617,000).

The future of about 360 jobs in Lincolnshire and Aberdeen are
hanging in the balance after Cosalt warned on Nov. 18 that banks
led by HSBC and Royal Bank of Scotland had refused to provide any
further funding to the company, the FT says.

Independent directors of Cosalt -- which has net debt of GBP14
million and has warned that it will run out of working capital
this week -- have accepted the formal 0.1p a share bid from
Mr. Ross, who has been the company's chairman for the past two
years, the FT relates.

In an interview with the Financial Times, Mr. Ross appealed to
shareholders to back his bid to take Cosalt back into his
family's hands, the FT discloses.  According to the FT, he argued
that this was "the best way of salvaging the situation and
safeguarding these jobs".

Mr. Ross, who has been lending money to the company out of his
own pocket, said that he was prepared to inject a further GBP5
million if he was successful in taking Cosalt private, the FT
recounts.

Cosalt has struggled to manage its onerous debt burden, has
suffered from the legacy of an earlier acquisition spree and has
been hit by an alleged fraud, the FT states.

Mr. Ross, who holds a 15% stake, has already secured the support
of Sovereign Holding, a holding vehicle of the Rappaport Family
Trust, giving him the backing of shareholders that hold one-third
of the equity, the FT discloses.  Other big shareholders include
Henderson Global Investors, Cazenove Capital and Hanover
Investors, the FT notes.

Mr. Ross, as cited by the FT, said: "The shareholders have got 21
days in which they can consider the offer.  But if shareholders
are not prepared to entertain the offer, they should tell me
quite quickly . . .  because I don't think the company can really
afford for another 21 days to be unsure as to what's happening."

As reported by the Troubled Company Reporter-Europe on Nov. 28,
2011, Dow Jones' DBR Small Cap related that Cosalt PLC warned
that its cash flow position has continued to deteriorate and it
now has just GBP900,000 (US$1.4 million) available, representing
sufficient working capital only until today, Nov. 30.

Cosalt plc -- http://www.cosalt.com/-- is engaged in the
provision of safety products and services for marine industry and
offshore oil and gas industry.


GRACE SCAFFOLDING: Goes Into Administration, 36 Jobs at Risk
------------------------------------------------------------
Men Media News reports that Grace Scaffolding Limited has gone
into administration, putting 36 jobs at risk.

Grace Scaffolding has appointed Jeremy Woodside and Chris Ratten
from the Manchester office of business advisers RSM Tenon as
joint administrators, according to Men Media News.

The report notes that RSM Tenon said the company is continuing to
trade while a buyer is sought.

BBC News relates that Greater Manchester's Metrolink tram system
was disrupted when protesters blocked the line with lorries at
Salford Quays.  The protest was over the closure of Grace
Scaffolding, according to BBC News.

BBC News notes that six lorries were parked across tram lines in
a protest involving 15 workers from the company.

BBC News says that RSM Tenon said it was looking to find a buyer
for the business.

The administrators can be reached at:

          Jeremy Woodside
          Chris Ratten
          RSM TENON RECOVERY
          Arkwright House
          Parsonage Gardens
          Manchester, M3 2LF
          Tel: +44 (0) 161 834 3313
          E-mail: jeremy.woodside@tenongroup.com
                  chris.ratten@tenongroup.com

Headquartered in Salford, Grace Scaffolding Limited is a
scaffolding firm.  It specializes in refurbishment work in the
social housing sector.  It is run by Vincent and Brian Kelly.


ONLINE STAFFING: Court Appoints Provisional Liquidator
------------------------------------------------------
NDS UK reports that the petitions against Online Staffing Limited
and Recruitment Web Solutions Limited followed confidential
enquiries by Company Investigations, part of the Insolvency
Service, under section 447 of the Companies Act 1985, as amended.
The court appointed the Official Receiver provisional liquidator
of the companies.

The two companies shared a common director and both described
themselves as recruitment specialists, advertising the latest job
opportunities in nursing, healthcare and education through
www.onlinestaffing.co.uk and www.recruitmentwebsolutions.co.uk

The role of the Official Receiver is to protect the assets and
financial records of the companies pending determination of the
petitions. The provisional liquidator also has the power to
investigate the affairs of the companies to protect their assets
including any third party or trust monies or assets in the
possession of or under the control of the companies.

The case is now subject to High Court action and no further
information will be made available until the petitions are heard
in the High Court on Jan. 11, 2012.

The petitions to wind up the companies were presented in the High
Court on Nov. 22, 2011, under the provisions of section 124A of
the Insolvency Act 1986.

The Official Receiver was appointed as provisional liquidator of
the companies on Nov. 24, 2011.


TARGET FINC'L.: In Administration on GBP6 Million Keydata Claims
----------------------------------------------------------------
Paul Thomas at Adviser News reports that Target Financial
Management has entered administration following GBP6 million of
claims relating to in the now-collapsed investment firm Keydata
Investment Services.

TFM is part of the group Target Chartered Accountants (TCA),
which has around 197 employees.  Both TFM and TCA entered
administration, according to Adviser News.

Adviser News notes that TFM was among the firms being pursued by
the Financial Services Compensation Scheme to recoup compensation
paid to Keydata claimants.

Law firm Herbert Smith has written to Keydata distributors on
behalf of the FSCS to kick-start the legal process of pursuing
recoveries, the report discloses.

As reported in the Troubled Company Reporter on Oct. 21, 2011,
The Guardian said that the FSCS is pursuing independent financial
advisers who recommended clients invest in Keydata Investment.
Keydata Investment, which was regulated by the Financial Services
Authority (FSA), designed and distributed structured investment
products via a network of independent financial advisers, on
behalf of Luxembourg-based company Lifemark.  It was put into
administration by the regulator in June 2009, leaving 30,000
investors with GBP450 million worth of losses, according to the
guardian.  Dan Schwarzmann and Mark Batten of
PricewaterhouseCoopers LLP were appointed joint administrators of
Keydata on June 8, 2009.  The appointment was made based on an
application to court by the FSA on insolvency grounds.

Keydata Investment's administrators can be reached at:

         Dan Schwarzmann
         Mark Batten
         PRICEWATERHOUSECOOPERS LLP
         7 More London Riverside
         London, SE1 2RT
         Tel: +44 (0) 20 7583 5000
         Fax: +44 (0) 20 7212 7500
         E-mail: daniel.schwarzmann@uk.pwc.com
                 mark.batten@uk.pwc.com

Headquartered in Bath, Target Financial Management is an
independent financial adviser firm.  It has 28 employees.


* UK: Creditors May Have to Bear Some of Euro Rebalancing Costs
---------------------------------------------------------------
Svenja O'Donnell at Bloomberg News reports that Bank of England
Governor Mervyn King said that creditors will need to bear some
of the brunt of rebalancing in the euro area.

"There are some painful adjustments to be made whatever scenario
for the euro crisis develops," Bloomberg quotes Mr. King as
saying on Monday.  "Creditors will have to pay for the burden
too."


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *