TCREUR_Public/111202.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

           Friday, December 2, 2011, Vol. 12, No. 239

                            Headlines



A U S T R I A

HYPO ALPE: Moody's Withdraws 'Ca' Ratings on Preferred Securities


B E L G I U M

SOCIETE NATIONALE: S&P Rates Stand-Alone Credit Profile at 'bb-'


G E R M A N Y

PRIME 2006-1: Moody's Cuts Rating on EUR119.6-Mil. A Notes to Ba1


H U N G A R Y

FB AIRPORT: Court Orders Liquidation
OTP NYRT: Moody's Cuts Long-Term Senior Unsecured Rating to 'Ba1'
SZENNA PACK: Exal to Acquire Business for EUR14 Million


I R E L A N D

CURRA PROPERTIES: High Court Approves Survival Scheme
EIRCOM GROUP: First-Lien Lenders Want to Take Full Control
JUNO LTD: Moody's Raises Rating on EUR677.25MM Notes to 'Ba1'
KILDARE SECURITIES: S&P Cuts Rating on Class D Notes to 'B'


I T A L Y

PIAGGIO & C: S&P Affirms 'BB' Corporate Credit Rating
SEAT PAGINE: Gets Restructuring Deadline Extension
SEAT PAGINE: Credit Event Likely as Firm Misses Coupon Payment


K A Z A K H S T A N

EURASIAN NATURAL: S&P Lowers Corporate Credit Rating to 'BB'


L I T H U A N I A

BANKAS SNORAS: Vilnius Court Accepts Bankruptcy Application


N E T H E R L A N D S

STORK BV: Moody's Cuts Corp Family Rating to B2; Outlook Negative


P O R T U G A L

BRISA CONCESSAO: Moody's Downgrades Debt Ratings to 'Ba1'


R O M A N I A

* ROMANIA: S&P Affirms 'BB+/B' Foreign Currency Sovereign Ratings


R U S S I A

HYDROMASHSERVICE CJSC: S&P Assigns 'B+' Rating on RUB3-Bil. Notes
OTP BANK: Moody's Lowers Long-Term Deposit Ratings to 'Ba2'
OTP BANK: Moody's Puts NSR on Review for Further Downgrade


S P A I N

AMCI HABITAT: Seeks Voluntary Protection From Creditors
FONCAIXA CONSUMO: Moody's Assigns 'Ba3' Rating to Serie B Note


S W E D E N

FERROMET: Gets Second Extension to Restructuring Deadline


U K R A I N E

OTP BANK: Moody's Cuts Long-term Local Deposit Rating to 'Ba2'


U N I T E D   K I N G D O M

BATTERSEA POWER STATION: Creditors Seek Administration
FWAG: Gets Numerous Bids From Unnamed Organizations
GKN HOLDINGS: Moody's Changes Outlook on Ba1 Ratings to Positive
GLOBAL SHIP: Obtains Loan-to-Value Waiver Until November 2012
J&G INNS: Goes Into Administration, to Sell Hotels

MOUCHEL GROUP: Posts Wider Loss as New Deals Dry Up


X X X X X X X X

* Final Bids for Distressed Property Loans Due
* BOOK REVIEW: Inside Investment Banking, Second Edition


                            *********


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A U S T R I A
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HYPO ALPE: Moody's Withdraws 'Ca' Ratings on Preferred Securities
-----------------------------------------------------------------
Moody's Investors Service has affirmed and withdrawn the Baa3/P-3
issuer, debt and deposit ratings of Hypo Alpe-Adria-Bank
International AG (HAA). The long-term rating had a negative
outlook at the time of rating withdrawal. The rating agency also
affirmed and withdrew the HAA's E bank financial strength rating
(BFSR), the Ca(hyb) ratings of the non-cumulative preferred
securities (Tier 1 instruments) issued by Hypo Alpe Adria
(Jersey) Ltd and Hypo Alpe Adria (Jersey) II Ltd as well as HAA's
C(hyb) ratings for supplementary capital bonds
(Erganzungskapital), all of which carried stable outlooks at the
time of rating withdrawal. Moody's has withdrawn the ratings for
its own business reasons.

The Aa3/A1 ratings of debt backed by the Austrian federal state
of Carinthia (Aa3 negative) and the Aaa rating for debt backed by
the Republic of Austria (Aaa stable) are not affected by the
rating action.

Ratings Rationale

Moody's has withdrawn the ratings for its own business reasons.

The rating agency affirmed HAA's weak E BFSR reflecting Moody's
view that HAA is likely to continue to face substantial
challenges in its efforts to work-out its sizeable portfolio of
impaired loans and at the same time to establish a viable
business model independent of government support. While HAA has
posted a small profit for H1 2011, Moody's cautions that results
may prove to be unsustainable given the need to continue to work-
out problem loans and to de-leverage.

Key weaknesses relate (1) to the bank's impaired franchise which
the bank has yet to prove that it can be restored; (2) the weak
capitalization at a Tier 1 ratio of 6.6% as per H1 2011 results;
and (3) the risks in its significant legacy loan portfolio. The
bank relies on a smooth execution of its wind-down and exit plan
in order to match the sizable upcoming maturities in its funding
profile. As a result, HAA remains in a fragile financial
situation for the foreseeable future, and Moody's cannot rule out
the possibility that more capital support will be necessary to
prevent renewed distress.

HAA's weak E BFSR maps to Caa2 on the long-term scale. At a bank
debt and deposit rating of Baa3, the bank benefits from eight
notches of systemic support uplift which reflects Moody's
expectation of a continued commitment by the Republic of Austria
towards a nationalized HAA given the significant contingent
liability for the public sector, as major parts of HAA's funding
base are guaranteed by either Carinthia (Aa3 negative; EUR18.4
billion as of September 30, 2011) or the Republic of Austria
(EUR600 million). Moody's further notes the systemic importance
of HAA's subsidiaries in some neighboring countries in south-
eastern Europe.

Moody's affirmed the negative outlook on the senior unsecured
debt and deposit ratings. It reflects its view of a lower
probability of future systemic support over time because (i) Hypo
Alpe Adria's systemic importance will inevitably decrease as
major parts of the bank are divested or wound down over time; and
(ii) the "grandfathering" or sovereign guarantee for the bank's
debt will reduce over time in light of the largely staggered
nature of the maturity profile of this debt until 2017.

KEY SENSITIVITIES FOR THE GUARANTEED DEBT RATINGS

The rating agency notes that the ratings of the guaranteed debt
depend on a rating change of the support provider i.e. the
Government of Austria or the Federal State of Carinthia.

THE FOLLOWING RATINGS WERE WITHDRAWN AT THE CURRENT RATING LEVEL

BFSR: E, stable

Long-Term Bank Deposits: Baa3, negative

Long-Term Senior Unsecured: Baa3, negative

Issuer Rating: Baa3, negative

Short-Term Bank Deposits/ Commercial Paper: Prime-3

Junior Subordinated debt: C(hyb) stable

Preferred Stock issued by Hypo Alpe-Adria (Jersey) Limited and
Hypo Alpe-Adria (Jersey) II Limited: Ca(hyb) stable

THE FOLLOWING RATINGS REMAINED UNAFFECTED

Hypo Alpe-Adria-Bank International AG:

Backed long-term senior unsecured debt guaranteed by the
Austrian government: Aaa, stable

Backed long-term senior unsecured debt guaranteed by the Federal
State of Carinthia: Aa3, negative

Backed long-term subordinated debt guaranteed by the Federal
State of Carinthia: A1, negative

The ratings of Hypo-Alpe-Adria's covered bonds were also not
affected.

Hypo Alpe-Adria-Bank AG:

Backed long-term senior unsecured debt guaranteed by the Federal
State of Carinthia: Aa3, negative

Backed long-term subordinated debt guaranteed by the Federal
State of Carinthia: A1, negative


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B E L G I U M
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SOCIETE NATIONALE: S&P Rates Stand-Alone Credit Profile at 'bb-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Belgium's 100% state-owned railway
group holding Societe Nationale des Chemins de Fer Belges Holding
(SNCBH) to 'A+' from 'AA-'. "At the same time, we lowered our
short-term corporate credit rating on SNCBH to 'A-1' from 'A-1+'.
The outlook is negative," S&P said.

The downgrade of SNCBH follows that of the Kingdom of Belgium
(AA/Negative/A-1+; unsolicited rating) on Nov. 25, 2011. (See
'Ratings On Belgium Lowered To 'AA' On Financial Sector Risks To
Public Finances; Outlook Negative,' published Nov. 25, 2011, on
RatingsDirect on the Global Credit Portal.)

"We view SNCBH, the holding company of the Belgian national
railway group, as a government-related entity (GRE). In
accordance with our criteria for GREs, a downgrade of Belgium to
'AA' from 'AA+' results in a one-notch downgrade of SNCBH," S&P
said.

"Our 'A+' long-term rating on SNCBH reflects our view that there
is an 'extremely high' likelihood that the Kingdom of Belgium
would provide timely and sufficient extraordinary support to
SNCBH in the event of financial distress," S&P said. This is
based on S&P's assessment of SNCBH's:

    "Very important" role for the Belgian government. SNCBH is
    the sole owner of Belgium's dominant national rail operator
    SNCB; the owner of 93.61% of national rail infrastructure
    operator Infrabel, of which SNCBH holds 20% of the voting
    rights, less one vote; and one of Belgium's largest
    employers.

    "Integral" link between SNCBH and the Belgian state, its sole
    owner. This is given the GRE's strong legal status as an
    autonomous public body, which prevents its bankruptcy and
    makes the Kingdom of Belgium ultimately responsible for
    SNCBH's obligations.

"The long-term rating also reflects our opinion of SNCBH's stand-
alone credit profile (SACP), which we assess at 'bb-'. We lowered
our SACP on SNCBH in July 2011 because ongoing financial
difficulties at SNCB led to an increase in SNCBH's debt and a
weakening of its credit metrics. The SNCB group (comprising
SNCBH, SNCB, and Infrabel) has implemented a restructuring plan
aimed at reversing the losses at SNCB and restoring positive cash
flows by the end of 2012," S&P related.

"Our lowering of SNCBH's short-term rating to 'A-1' from 'A-1+'
is a consequence of us lowering the long-term rating. Under our
corporate criteria, investment-grade short-term ratings are
highly correlated with long-term ratings, and a short-term rating
of 'A-1' is generally associated with an 'A+' long-term rating,"
S&P said.

"The negative outlook reflects potential rating pressure if the
SNCB group's restructuring plan does not resolve the financial
difficulties at SNCB by the end of 2012. At the current rating
level, we anticipate that the SNCB group will have positive
operating cash flows in 2012. We also anticipate that the
combined cash flows of SNCBH and SNCB will be positive. Failure
to return to positive operating cash flows by the end of 2012
could put pressure on the ratings," S&P said.

"The ratings could also come under pressure if liquidity does not
remain adequate, or if group debt rises above what we currently
anticipate. A reduction of the level of subsidies provided by the
Kingdom of Belgium, which support both ongoing operations and new
investment, or the signing of new management contracts that are
less favorable to the group's companies than in the past, could
also lead to a downgrade," S&P said.

"Adverse changes in the national or European regulatory framework
or in SNCBH's statutory framework could lead us to re-evaluate
the likely support from the Kingdom of Belgium, and may result in
a multi-notch downgrade of SNCBH. In addition, a multi-notch
downgrade of the sovereign could also lead us to downgrade
SNCBH," S&P said.

"We could revise the outlook to stable if the combined cash flows
of SNCH and SNCB return to positive levels in 2012 and debt
stabilizes," S&P said.


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


PRIME 2006-1: Moody's Cuts Rating on EUR119.6-Mil. A Notes to Ba1
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of the
following notes issued by Prime 2006-1 Funding Limited
Partnership and EUR9,000,000 PRIME 2006-1 Funding Linked Notes
due 2013/15 issued by Landesbank Baden-Wurttemberg:

Issuer: Prime 2006-1 Funding Limited Partnership

   -- EUR119.6MM A Notes (currently EUR100.7M outstanding),
      Downgraded to Ba1 (sf); previously on Nov 23, 2010
      Downgraded to Baa1 (sf)

   -- EUR15MM B Notes, Downgraded to Caa1 (sf); previously on
      Nov 23, 2010 Downgraded to B1 (sf)

   -- EUR20MM C Notes, Downgraded to Ca (sf); previously on
      Nov 23, 2010 Downgraded to Caa2 (sf)

   -- EUR13.9MM D Notes, Downgraded to Ca (sf); previously on
      Nov 23, 2010 Downgraded to Caa3 (sf)

Issuer: EUR9,000,000 PRIME 2006-1 Funding Linked Notes due
2013/15

   -- EUR9MM PRIME 2006-1 Funding Linked Notes due 2013/15,
      Downgraded to Caa3 (sf); previously on Nov 23, 2010
      Downgraded to Caa1 (sf)

EUR9,000,000 Prime 2006-1 Funding Linked Notes is a combination
note issued by LBBW under a term note program. It is a
repackaging of a portion of Classes A and E of SME CDO notes
issued by Prime 2006-1 Funding Limited Partnership. The cash
flows of the two classes are passed through to the combination
notes. With respect to the combination notes, the rating
addresses the expected loss posed to investors by the legal final
maturity as a proportion of the Rated Balance, where the Rated
Balance is equal, at any time, to the principal amount of the
combination notes on the closing date minus the aggregate of all
payments made from the closing date to such date, either through
interest or principal payments. The current rated balance amounts
to EUR5.9 million according to Moody's calculation. The Rated
Balance may not necessarily correspond to the outstanding
notional amount reported by the trustee. The rating incorporates
the additional expected loss deriving from LBBW (A2) as the
issuer of the combination notes.

Ratings Rationale

Prime 2006-1 Funding Limited Partnership is a German SME CLO
backed by profit participation agreements ("Genussrechte") with
or without loss participations which are all subordinated bullet
loans issued by German small and medium-sized companies.

The rating actions are driven by the recent credit deterioration
observed in the underlying pool. This deterioration is evidenced
by an additional EUR15 million of principal deficiencies
experienced since last rating action in November 2010. Since
inception of the transaction, EUR54.5 million principal
deficiencies have been reported, including EUR8.5 million of
early terminations repaid at par. The principal deficiency ledger
(PDL) has been paid down to EUR35.6 million at the last payment
date. In addition, the reported weighted average credit quality
of the portfolio exhibit a migration from B2 to B3 since November
2010. The reported credit quality is based on LBBW's and HSH's
internal ratings mapped to Moody's rating scale.

The underlying portfolio of Prime 2006-1 currently totals
EUR178.5 million with exposure to 24 obligors, among which 5
obligors total EUR36.5 million are still subject to Principal
Deficiency Ledger (PDL), as per the investors report dated
October 31, 2011. The Class A notes have been paid down by EUR3.2
million since last rating action in November 2010.

In its analysis, Moody's applied stressed assumptions as per its
standard methodology. This includes a 30% stress to the
probability of defaults of each obligor, forward looking
stresses, as well as an increased inter-asset correlation of 5%
in order to reflect the borrower concentration in a single
country. In addition, due to the subordinated position of the
loans in the obligors' capital structure, Moody's assumes a zero
recovery rate upon asset default.

As a base case, Moody's took into account the high downside risk
related to the concentration of the portfolio. Moody's analyzed
the underlying collateral pool to have a performing par of EUR139
million, a Moody's calculated outstanding PDL of EUR38.6 million,
a stressed weighted average default probability to legal maturity
(August 2015) of 13.8% (consistent with the default probability
level of a Caa1 rating), and a weighted average recovery rate of
0. The default probability is derived from the credit quality of
the collateral pool and Moody's expectation of the remaining life
of the collateral pool.

In reaching its ratings decisions, Moody's also incorporated the
qualitative information on individual obligors' performance
provided by Altium Mitkap AG as financial advisor in the latest
investor report.

Moody's notes as well that this portfolio shows high
concentration levels, as the top five obligors represent close to
52.8% of the pool, with the lowest mapped ratings at Ba3. In
order to measure the risk associated with such low granularity,
Moody's conducted several sensitivity analyses , including the
application of stresses applicable to concentrated pools with non
publicly rated issuers, as outlined in Moody's Methodology,
"Updated approach to the usage of credit estimates in rated
transactions" (October 2009). The volatility of the rating
outputs in such sensitivity runs was deemed consistent with the
current ratings in light of the collateralization levels
available on the different tranches calculated by Moody's, which
are the following: Class A 138.1%, Class B 120.2%, Class C
102.5%, Class D 92.9%, Class E 85.5%. Moody's views the
concentration risk in this transaction as very material in the
light of elevated refinancing difficulties likely to be faced by
an increasing number of the weaker obligors over the coming years
to scheduled maturity.

Moody's also took into consideration the fact that obligations in
this pool provide for maturity extension and coupon deferral,
both linked to breach of certain loss triggers. On the one hand,
a maturity extension would expose the transaction to poorly
performing entities for longer than scheduled. On the other hand,
a maturity extension may allow the extending borrower to recover
during the extension period. While coupon deferral is cumulative,
a default following deferral would lead to the deferred past
coupon payments to be lost in addition to the principal amount.
Moody's addresses the these specific risk by modelling a maturity
extension of up to 2 years for the debt obligations and reducing
the coupon earned from the debt obligations. Both of these
adjustments depend on the current rating level of each
obligation.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by uncertainties of
credit conditions in the general economy.

Sources of additional performance uncertainties include:

1) Low portfolio granularity: The performance of the portfolio
depends to a large extent on the credit conditions of a few large
obligors that are rated non investment grade, especially when
they experience jump to default. Due to the pool's lack of
granularity, Moody's supplement its base case scenario with
individual scenario analysis. The realization of higher than
anticipated default rate due to the weakness of large obligors
would negatively impact the ratings.

2) There is the potential for elevated refinancing difficulty
regarding the subordinated debt instruments in this portfolio,
particularly among obligors with weaker credit quality. The
emergence of increased refinancing difficulty at the time of
maturity would negatively impact the notes.

The methodologies used in this rating were "Moody's Approach to
Rating CDOs of SMEs in Europe" published in February 2007, and
"Moody's Approach to Rating Collateralized Loan Obligations"
published in June 2011.

In rating this transaction, Moody's used CDOROM to simulate the
default scenarios for each assets in the portfolio. Losses on the
portfolio derived from those scenarios have then been applied as
an input in the cash flow model to determine the loss for each
tranche. In each 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. By repeating this process and averaging over the
number of simulations, an estimate of the expected loss borne by
the notes is derived.

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

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


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H U N G A R Y
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FB AIRPORT: Court Orders Liquidation
------------------------------------
MTI-Econews, citing daily Nepszabadsag, reports that FB Airport,
the operator of Fly Balaton airport, has been ordered under
liquidation by the court.

According to MTI, the paper said that Vectigalis will be the
company's liquidator.

FB Airport owes the state-owned Hungarian Development Bank (MFB)
more than HUF1 billion in loans, MTI discloses.

FB Airport owner Aviation Group earlier went under liquidation,
MTI recounts.

Fly Balaton airport is a regional airport in the west of Hungary.


OTP NYRT: Moody's Cuts Long-Term Senior Unsecured Rating to 'Ba1'
-----------------------------------------------------------------
Moody's Investors Service has downgraded to Baa3 (on review for
downgrade) from Baa1 (on review for downgrade) covered bonds
issued by OTP Mortgage Bank (OTP). This rating action follows
Moody's downgrade of the long-term senior unsecured rating of OTP
NyRt to Ba1 from Baa3. OTP's covered bonds were previously placed
on review for downgrade on October 5.

The covered bonds issued by FHB Mortgage Bank (FHB) under its
covered bond program are currently rated Baa3 and remain on
review for downgrade. Both FHB and OTP are based in Hungary.

The timely payment indicator (TPI) of both covered bond programs
remains "Very Improbable".

Ratings Rationale

The rating action on OTP's covered bonds was prompted by the
rating action taken by Moody's Financial Institutions Group on
the senior unsecured rating of OTP NyRt, which was downgraded to
Ba1/Not-Prime from Baa3/P-3 on November 25. While the issuer of
the covered bonds is OTP, Moody's uses the senior unsecured
rating of OTP Bank NyRt, the parent bank of OTP, as the "issuer
rating" for its covered bond analysis as OTP NyRt provides a
full, irrevocable and unconditional guarantee of OTP's
obligations.

The downgrade to Baa3 reflects the rating Moody's considers
achievable for these covered bonds under its TPI analysis given
the issuer rating of Ba1 and a TPI of Very Improbable.

The downgrade of the senior unsecured rating of FHB on
November 25, 2011 to Ba2/Not-Prime from Ba1/Not-Prime currently
has no rating implications on the Baa3 ratings of FHB's covered
bonds which remain on review for downgrade.

The issuer ratings of OTP NyRt and FHB were downgraded following
the downgrade of Hungary's sovereign debt ratings by one notch to
Ba1, negative outlook, from Baa3, negative outlook. For further
information on the rating actions taken by Moody's Financial
Institutions Group, please refer to "Moody's takes rating action
on seven Hungarian commercial banks", published on November 25,
2011, and on the rating action taken by Moody's Sovereign Group
please refer to the press release "Moody's downgrades Hungary to
Ba1, negative outlook", published on November 24, 2011.

A downgrade of an issuer's senior unsecured ratings negatively
affects the covered bonds through its impact on both the timely
payment indicator (TPI) framework and the expected loss method.

TPI Framework

Following the downgrades of the issuers, Moody's has assessed the
covered bond ratings in line with the TPI framework. The TPI of
both covered bond programs is "Very Improbable".

The rating actions reflect Moody's assessment of the rating level
achievable under Moody's TPI analysis. Moody's TPI table
indicates a rating of Baa3 for a TPI of "Very Improbable",
coupled with an issuer rating of Ba1 (in the case of OTP) or Ba2
(in the case of FHB). In both cases the ratings have been
positioned at the levels indicated by the TPI Table.

The covered bonds of both issuers remain on review for downgrade
in line with the ongoing review for downgrade of both issuer
ratings. The TPI Leeway for these programs is limited, and thus
any further downgrade of the issuer ratings may lead to a
downgrade of the covered bonds.

Expected Loss Method

As the issuer's credit strength is incorporated into Moody's
expected loss assessment, any downgrade of the issuer's rating
will increase the expected loss on the covered bonds. For the
covered bonds of both programs the expected loss analysis is
consistent with the current covered bond ratings without any
over-collateralization.

Key Rating Assumptions/Factors

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

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

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

Sensitivity Analysis

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

The TPI Leeway may measure the number of notches by which the
issuer's rating may be downgraded before the covered bonds are
downgraded under the TPI framework.

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

Rating Methodology

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

Rating Review

The covered bond ratings of OTP and FHB are under review for
downgrade to reflect that both issuers' ratings are under review
for downgrade.

The ratings assigned by Moody's address the expected loss posed
to investors. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield to
investors.

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


SZENNA PACK: Exal to Acquire Business for EUR14 Million
-------------------------------------------------------
According to MTI-Econews, consultancy KPMG Hungaria said on
Tuesday that US-based extruded aluminium can maker Exal
Corporation has reached an agreement to acquire Szenna Pack for
EUR14 million and pay off some of its debts.

Szenna Pack filed for bankruptcy protection in July because of a
poorly-timed investment, MTI-Econews relates.

Since then, Exal Corporation has agreed to buy Szenna Pack, take
care of unpaid wages and bills, and repay 50-75% of loans backed
by collateral and 10% of loans without collateral, MTI-Econews
recounts.  The American company wants to continue production at
Szenna Pack and keep its 120 workers, MTI-Econews notes.

If the deal is approved by the court, Exal Corporation could move
some production of its European unit Boxal to Hungary, MTI-
Econews states.

KPMG Hungaria, as cited by MTI, said that Boxal wants to triple
Szenna Pack's output, focusing mainly on exports, and hire
another 180 workers over three years.

Szenna Pack is a family-owned maker of aerosol spray cans based
in Hungary.


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I R E L A N D
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CURRA PROPERTIES: High Court Approves Survival Scheme
-----------------------------------------------------
Irish Examiner reports that the High Court on Wednesday approved
a survival scheme for Curra Properties Ltd., the operators of an
Eddie Rockets restaurant in South Dublin.

Curra was granted court protection from creditors last August
after it said it was insolvent and unable to pay its debts, Irish
Examiner relates.

The firm, with more than twenty employees, got into financial
problems because it was unable to service a historic debt of EUR1
million owed to Revenue, Irish Examiner recounts.  That debt, the
court heard, was caused by an ex-employee who embezzled
substantial funds from Curra, Irish Examiner notes.

According to Irish Examiner, Mr. Justice Mary Finlay Geoghegan
approved the survival scheme proposed by the examiner to the
company, Gary Lennon, who said the scheme was in the best
interests of creditors, employees and all concerned with the
company.

The judge said she was satisfied that as a result of the scheme
of arrangement, the company has a reasonable prospect of survival
as a going concern, Irish Examiner recounts.

The judge's approval will allow the company to exit examinership
and it will continue to trade as a going concern, Irish Examiner
notes.  The court gave its approval after being told the scheme
had secured approval of most of the company's creditors, Irish
Examiner says.

Creditors of Curra, included Bank of Scotland, who are owed
EUR168,000, and the Revenue Commissioners, Irish Examiner
discloses.

Curra Properties Ltd. ran Eddie Rockets at the Stillorgan
Shopping Centre.


EIRCOM GROUP: First-Lien Lenders Want to Take Full Control
----------------------------------------------------------
Joe Brennan and Patricia Kuo at Bloomberg News report that Eircom
Group Ltd.'s first lien lenders may write off some debt and seize
control of Ireland's largest phone company under a restructuring
that could supplant proposals by owner Singapore Technologies
Telemedia Pte.

According to Bloomberg, two people familiar with the matter said
that Eircom's most senior lenders would write off about 8% of the
EUR2.36 billion (US$3.1 billion) they are owed by the Dublin-
based company.

The plan was disclosed by a committee of first lien lenders in a
conference call on Nov. 28 with a broader group of these
creditors, Bloomberg recounts.  They said the plan is a back-up
if STT doesn't make an acceptable proposal, Bloomberg notes.

Eircom's independent directors set an extended deadline of Dec. 2
for debt restructuring pitches for the company, which is saddled
with EUR3.75 billion of borrowings following five ownership
changes in the past 12 years, Bloomberg relates.

The people, as cited by Bloomberg, said that the first-lien
blueprint would involve the company's second-lien lenders and
holders of floating-rate and payment-in-kind notes lose almost
all of the EUR1.3 billion they are owed.  They said that it also
entails extending maturities on senior debt, Bloomberg notes.

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.


JUNO LTD: Moody's Raises Rating on EUR677.25MM Notes to 'Ba1'
-------------------------------------------------------------
Moody's Investors Service has upgraded the Class A Notes issued
by Juno (Eclipse 2007-2) LTD (amount reflects initial
outstanding):

Issuer: JUNO (ECLIPSE 2007-2) LTD

   -- EUR677.25-Mil. Class A Floating Rate Notes due 2022
      Certificate, Upgraded to Ba1 (sf); previously on
      Feb 16, 2011 Downgraded to B1 (sf)

Moody's does not rate the Class C, Class D and Class E Notes.

Ratings Rationale

The upgrade action reflects the liquidation of the security for
the three largest reference obligations, namely Keops (29% of the
current pool), Neumarkt (16%) and SCI Clichy (15%). The proceeds
are indicating a significantly lower loss than previously
anticipated. Proceeds from the repayment of the Senior and Junior
Monaco reference obligations (2% of the current pool) and from
the liquidation of SCI Clichy are expected to be reflected in the
capital structure per November 2011 Note IPD. The distribution of
proceeds relating to Keops and Neumarkt is likely in 2012. The
Eligibility Criteria Verification Agent for the Neumarkt
reference obligation is anticipated to be appointed by the
February 2012 Note IPD. However, no information with respect to
the timeline of eligibility criteria verification for Keops is
available to Moody's as yet.

All principal recoveries will be allocated fully sequentially to
the Notes which will materially improve the cushion against
potential further losses from the remaining ten reference
obligations in the pool. 49% of the remaining pool balance will
be subject to a maturity in 2015 or 2016. The Final Maturity Date
of the Notes is in November 2022.

Moody's will conduct a further review of the transaction once the
level of costs with respect to Keops and a breakdown of the costs
associated with Neumarkt become available.

The key parameters in Moody's analysis are the default
probability of the securitized loans (both during the term and at
maturity) as well as Moody's value assessment for the properties
securing these loans. Moody's derives from those parameters a
loss expectation for the securitized pool.

Based on the sales proceeds for Keops, Moody's expects a
liquidation loss below 10% on the current balance of the
reference obligation. The actual level of the liquidation loss
will be driven by the final costs associated with the loan work-
out.

Proceeds of EUR130.4 million have been realized for the property
securing Neumarkt. The calculation agent has determined a
liquidation loss amount of EUR 16.2 million, about 13% of the
current securitized balance. The eligibility criteria
verification agent is not yet appointed. The liquidation loss
amount indicates a cost level of above 20% deducted from the
achieved sale price of the property. Moody's has not received a
breakdown of the cost items or any further information.

The calculation agent has determined a liquidation loss of EUR
29.3 million for SCI Clichy. Subject to the eligibility criteria
verification, a principal loss of EUR 29.3 million (26% of the
current balance) is expected to be allocated to Class E and Class
D at the November 2011 Note IPD.

15 out of the originally 17 reference obligations are currently
in the pool. Three reference obligations are expected to leave
the pool at the November 2011 Note IPD (SCI Clichy, Senior
Monaco, Junior Monaco) and two reference obligations (Keops and
Neumarkt) are expected to leave the pool within the next
quarters, which will leave 10 reference obligations.

Moody's has not changed its assumptions on market values for the
remaining reference obligations from the last rating action in
February 2011 (see Press Release published on 16 February 2011).
The weighted average (WA) Moody's loan-to-value (LTV) ratio on
the remaining securitized pool of ten reference obligation is
105% and on the whole loan is 109%. Moody's notes that for seven
of the ten remaining reference obligations (52% of the remaining
pool), the Moody's LTV ratios on the whole loan are above 90%,
translating into high probability of default at maturity.

Two of the remaining reference obligations (Senior & Junior Den
Tir; 10% of the remaining pool) have defaulted. The special
servicer is currently in sale negotiations. Moody's expects
significant losses on these reference obligations. The
Petersbogen reference obligation (24% of the remaining pool) is
on the servicer's watchlist as it is in breach of its LTV cash
trap trigger. One of the remaining reference obligations (6% of
the remaining pool) matures in 2012 while two reference
obligations (30%) mature in 2013, another two (16%) in 2014 and
the remaining five (49%) in 2015 and 2016.

In general, Moody's analysis reflects a forward-looking view of
the likely range of commercial real estate collateral performance
over the medium term. From time to time, Moody's may, if
warranted, change these expectations. Performance that falls
outside an acceptable range of the key parameters such as
property value or loan refinancing probability for instance, may
indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. There may
be mitigating or offsetting factors to an improvement or decline
in collateral performance, such as increased subordination levels
due to amortization and loan re- prepayments or a decline in
subordination due to realized losses.

Primary sources of assumption uncertainty are the current
stressed macro-economic environment and continued weakness in the
occupational and lending markets. Moody's anticipates (i) delayed
recovery in the lending market persisting through 2012, while
remaining subject to strict underwriting criteria and heavily
dependent on the underlying property quality, (ii) values will
overall stabilize but with a strong differentiation between prime
and secondary properties, and (iii) occupational markets will
remain under pressure in the short term and will only slowly
recover in the medium term in line with the anticipated economic
recovery. Overall, Moody's central global scenario remains
'hooked-shaped' for 2011; Moody's expects sluggish recovery in
most of the world's largest economies, returning to trend growth
rate with elevated fiscal deficits and persistent unemployment
levels.

Moody's Portfolio Analysis

Juno (ECLIPSE 2007-2) LTD closed in May 2007 and represents a
fully-funded synthetic transaction of initially 17 mortgage
reference obligations originated by Barclays Bank PLC
("Barclays") secured mainly by first ranking mortgages on 206
properties located in Germany (34%), Sweden (25%), France (15%),
Belgium, Italy and Monaco. The properties were predominantly
office (52%) and retail (32%).

As of the August 2011 Note IPD, the transaction's total pool
balance was EUR766.8 million down by 12% since closing due to
repayments and prepayments. Based on the underwriter's ("U/W")
market value as of August 2011, the pool of the remaining ten
reference obligations exhibits an average concentration in terms
of geographic location (46% Italy, 44% Germany, 10% Belgium) and
property type (46% mixed office/retail). Moody's uses a variation
of Herf to measure diversity of loan size, where a high number
represents greater diversity. Large multi-borrower transactions
typically have a Herf of less than 10 with an average of around
5. The pool of the remaining ten reference obligations has a Herf
of 6, lower than at Moody's prior review.

As per the last investor report on the transaction (August 2011),
two of the remaining reference obligations (Senior&Junior Den
Tir; 10% of the remaining pool) were in special servicing.
Moody's expects significant losses on these reference
obligations. One loan (Petersbogen; 24% of the remaining pool) is
on the servicer's watchlist as it is in breach of its LTV cash
trap trigger.

Obelisco is the largest of the remaining reference obligations
(28%). It is secured by a portfolio of office and retail
properties across Italy. About 8% of the rental area is currently
vacant compared to 23% as per Moody's prior review. As a result,
the DSCR has improved to 1.25x. The reference obligation is
subject to a relatively beneficial lease expiry profile. Moody's
has not adjusted its value assumptions for the portfolio and
expects a medium risk of default (10%-25%) at maturity in
December 2015 based on 67% Moody's LTV at maturity.

The second largest reference obligation of the remaining pool
(Petersbogen; 24%) is secured by a shopping center in Leipzig. A
significant portion of leases were due to expire during the first
quarters of 2011. Moody's has not received information with
respect to the renewal of those leases. Based on the latest
Investor Report covering the period until August 2011, the
property is about 1% vacant. The DSCR is at 1.14x (1.22x at
Moody's previous review). Moody's has not adjusted any of its
assumptions with respect to this reference obligation and expects
a high risk of default (50%-100%) assuming 114% LTV on the whole
loan at maturity in November 2013.

Pyrus is the third largest reference obligation of the remaining
portfolio (12%). It is secured by six multifamily properties
mainly located in North Rhine Westphalia. The reference
obligation is performing in line with expectations. Moody's has
not adjusted it assumptions and expects a medium risk of default
(10%-25%) at maturity in November 2014 based on 85% Moody's LTV
at maturity.

Portfolio Loss Exposure: Moody's expects a significant amount of
losses on the securitized portfolio, stemming mainly from the
refinancing profile of the securitized portfolio. Given the
default risk profile and the anticipated work-out strategy for
potentially defaulting loans, the expected losses on the
remaining 10 loans are likely to crystallize only towards the end
of the transaction term with the exception of the currently
defaulted Senior&Junior Den Tir reference obligations for which
Moody's expects losses to be realized in the medium term.

Rating Methodology

The methodologies used in this rating were Moody's Approach to
Real Estate Analysis for CMBS in EMEA: Portfolio Analysis (MoRE
Portfolio) published in April 2006, and Update on Moody's Real
Estate Analysis for CMBS Transactions in EMEA published in June
2005.

Other factors used in this rating are described in EMEA CMBS:
2011 Central Scenarios published in February 2011.

The updated assessment is a result of Moody's ongoing
surveillance of commercial mortgage backed securities (CMBS)
transactions. Moody's prior assessment is summarized in a press
release dated February 16, 2011. The last Performance Overview
for this transaction was published on October 24, 2011.

In rating this transaction, Moody's used both MoRE Portfolio and
MoRE Cash Flow to model the cash-flows and determine the loss for
each tranche. MoRE Portfolio evaluates a loss distribution by
simulating the defaults and recoveries of the underlying
portfolio of loans using a Monte Carlo simulation. This portfolio
loss distribution, in conjunction with the loss timing calculated
in MoRE Portfolio is then used in MoRE Cash Flow, where for each
loss scenario on the assets, the corresponding loss for each
class of notes is calculated taking into account the structural
features of the notes. As such, Moody's analysis encompasses the
assessment of stressed scenarios.


KILDARE SECURITIES: S&P Cuts Rating on Class D Notes to 'B'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
all classes of Kildare Securities Ltd.'s notes. "At the same
time, we have removed from CreditWatch negative our ratings on
the class A2, A3, and B notes," S&P related.

"The rating actions reflect the application of our 2010
counterparty criteria for structured finance transactions (see
'Counterparty And Supporting Obligations Methodology And
Assumptions,' published on Dec. 6, 2010) and follow our credit
and cash flow review of the most recent information that we have
received for this transaction," S&P said.

                  Counterparty Criteria Application

"On Jan. 18, 2011, we placed our ratings on the class A2, A3, and
B notes on CreditWatch negative when our 2010 counterparty
criteria became effective (see 'EMEA Structured Finance
CreditWatch Actions In Connection With Revised Counterparty
Criteria')," S&P related.

"The transaction counterparties sent us amended transaction
documentation before July 18, 2011, which we reviewed and which
we considered to be in line with our 2010 counterparty criteria.
We were informed that a noteholder meeting had been scheduled at
which the noteholders would vote on whether or not to accept the
proposed changes. We therefore kept the ratings on the class A2,
A3, and B notes on CreditWatch negative pending the outcome of
the noteholder meeting (see 'S&PCORRECT: Ratings In Eight
European RMBS Transactions Kept On CreditWatch Negative Awaiting
New Documentation,' published on Aug. 26, 2011 [originally
published on July 18, 2011])," S&P related.

"Following the noteholder meeting, the proposed amendments have
now been executed and we have therefore resolved the CreditWatch
negative placements," S&P said.

"As a result of the amendments, BNP Paribas (AA-/Stable/A-1+) has
replaced Bank of Ireland (BoI; BB+/Negative/B) as the guaranteed
investment contract (GIC) provider. The revised documentation is
in line with our 2010 counterparty criteria, with a replacement
trigger that supports a maximum potential rating of 'AA'," S&P
said.

"BoI guarantees the swap payments of the swap counterparty, ICS
Building Society, in the transaction, hedging the potential
interest rate mismatch between the amounts earned on the loans
and the LIBOR/EURIBOR-based interest payable on the notes. We do
not consider BoI to be an eligible counterparty under our 2010
counterparty criteria. Therefore, the maximum rating that this
counterparty obligation could support is the long-term rating on
BoI. Therefore, we have not considered this swap in our analysis
and have applied stresses to asset cash flows to reflect the
unhedged structure," S&P said.

"BoI will remain as collection account provider, receiving the
collections from underlying borrowers. The mortgage manager
transfers daily the amounts received in the collection account to
the issuer's account. The transaction documents do not provide
for the replacement of the collection account provider, following
the deterioration of the creditworthiness of BoI, in line with
our 2010 counterparty criteria. There is a risk that borrowers
may continue to pay into the account of BoI, should BoI become
insolvent. As a result, the collections arising from the mortgage
loans belonging to the issuer may be caught in the bankruptcy
estate of BoI. We have sized for this risk in our analysis," S&P
said.

"Borrowers will have the right to set off any amounts held in
deposit accounts with ICS Building Society (the originator and
servicer; a wholly owned subsidiary of BoI) against their
mortgage loan, in the event of the insolvency of ICS Building
Society. We have considered the potential set-off amounts when
performing our cash flow analysis," S&P said.

"The transaction is also supported by a currency swap from
Barclays Bank PLC (AA-/Negative/A-1+). We do not consider the
currency swap to be in line with our 2010 counterparty criteria.
This means the maximum potential rating for all notes in this
transaction is capped at 'AA', the long-term rating on Barclays
Bank, plus one notch," S&P said.

                          Credit Analysis

"In analyzing the credit quality of the assets in this
transaction, and as is our standard practice, we have applied our
general criteria for ratings, namely the 'Principles Of Credit
Ratings,' published on Feb. 16, 2011. We have adopted the
methodology and assumptions outlined in our U.K. residential
mortgage-backed securities (RMBS) criteria (see 'Methodology And
Assumptions: Update To The Criteria For Rating U.K. Residential
Mortgage-Backed Securities,' published on Jan. 6, 2009, and
'Revised Criteria for Rating U.K. Residential Mortgage-Backed
Securities,' published on July 5, 2001)," S&P said.

The assumptions S&P used and penalties it applied for its credit
risk analysis for this transaction are as outlined in its U.K.
RMBS criteria, with these exceptions:

    'AA' base foreclosure frequency: 8% for the U.K. and 9% for
    Ireland.

    'A' base foreclosure frequency: 6% for the U.K. and 7% for
    Ireland.

    'BBB' base foreclosure frequency: 4% for the U.K. and 5% for
    Ireland.

    'AAA' market value decline: 47% in the South and 25% in the
    North (U.K.); 45% for Ireland.

    'AA' market value decline: 40% in the South and 22% in the
    North (U.K.); 40% for Ireland.

    'A' market value decline: 35% in the South and 19% in the
    North (U.K.); 35% for Ireland.

    'BBB' market value decline: 30% in the South and 16% in the
    North (U.K.); 30% for Ireland.

    Jumbo loan penalty: GBP300,000 in the South and GBP170,000 in
    the North (U.K.); EUR500,000 in Dublin and EUR400,000 outside
    of Dublin (Ireland).

    Jumbo valuation penalty: GBP375,000 in the South and
    GBP212,500 in the North (U.K.); EUR625,000 in Dublin and
    EUR500,000 outside of Dublin (Ireland).

"All other penalties applied for our credit risk analysis are as
outlined in our U.K. RMBS criteria, except instances where the
penalty for the loan or borrower characteristic outlined in the
criteria was not relevant to our analysis," S&P said.

"Due to forbearance measures, repossessions have generally been
limited in the Irish residential mortgage market. In our
analysis, we considered scenarios in which the foreclosure period
would increase, resulting in the erosion of credit enhancement
and further stress to the transaction," S&P related.

"The collateral comprises owner-occupied first-ranking
residential mortgages on properties in Ireland. Delinquency
levels have been increasing steadily in this transaction since
late 2009. The September 2011 investor report shows that almost
6.2% of the loans in the pool are in arrears, and more than 4.6%
have been in arrears for 90 days or longer. In our analysis, we
assume a higher foreclosure frequency for loans in arrears. Our
analysis also included an additional increase in arrears from the
current level, based on the trend in the last 12 months, to
account for our expectation of future deterioration in portfolio
performance. Our analysis also included an increase in arrears to
address previous loan repurchases, which may have masked the true
extent of arrears in the pool," S&P related.

"House prices in Ireland have fallen by almost 43% since their
peak at the beginning of 2007, according to Central Statistics
Office Ireland. In our analysis, decreases in house prices
generally result in higher loan-to-value (LTV) ratios on the
loans. For example, almost 45% of the borrowers in the pool (by
loan balance) have indexed LTV ratios above 100%. We assume that
loans with higher LTV ratios have a greater propensity to
foreclose and experience a higher loss at foreclosure," S&P said.

The transaction benefits from a non-amortizing reserve fund of
EUR41 million (2.48% of the outstanding note balance). On the
March 2011 interest payment date, principal receipts funded a
liquidity reserve fund. The aggregate of the liquidity reserve
fund and the reserve fund equals 3% of the outstanding note
balance.

"Our calculated weighted-average indexed LTV ratio has increased
to 92.8% from 74.0% at closing, which reflects the effect of the
continued house price decline in Ireland," S&P said.

"The combined effect of modeling the transaction without the
benefit of the interest rate swap, our increased foreclosure
assumptions, driven by increasing arrears and house price
declines, and potential set-off amounts has resulted in the
downgrades of the rated notes," S&P said.

Although credit enhancement has increased by more than 75% for
all classes of notes since closing, prepayment levels are low and
the transaction is unlikely to pay down significantly in the near
term.

"We considered all of the above factors when conducting our
credit and cash flow analysis," S&P related.

Kildare Securities is an Irish RMBS transaction that closed in
March 2007. It securitizes mortgage loans originated and serviced
by ICS Building Society, a wholly owned subsidiary of BoI.

"Under our criteria, the maximum rating differential between
issuers or transactions and the related European Monetary Union
(EMU) sovereign is six notches (see 'Nonsovereign Ratings That
Exceed EMU Sovereign Ratings: Methodology And Assumptions,'
published on June 14, 2011). Given that the long-term sovereign
credit rating on the Republic of Ireland is 'BBB+', under
our criteria the ratings on notes in structured finance
transactions backed by Irish assets should be no higher than
'AA+'," S&P said.

Ratings List

Class             Rating
            To              From

Kildare Securities Ltd.
EUR1.276 Billion and $2.176 Billion
Mortgage-Backed Floating-Rate Notes

Ratings Lowered and Removed From CreditWatch Negative

A2          AA- (sf)        AA (sf)/Watch Neg
A3          BBB+ (sf)       AA- (sf)/Watch Neg
B           BBB- (sf)       A- (sf)/Watch Neg

Ratings Lowered

C           BB- (sf)        BB+ (sf)
D           B (sf)          BB (sf)


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


PIAGGIO & C: S&P Affirms 'BB' Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Italian
manufacturer of scooters, motorcycles, and light transportation
vehicles Piaggio & C. SpA to negative from stable. "At the same
time, we affirmed our 'BB' long-term corporate credit rating on
Piaggio," S&P said.

"The outlook revision primarily reflects our opinion that if
Piaggio's ongoing negotiations with banks to renew the existing
revolving credit facilities (RCFs) are not successful, we would
change our assessment of its liquidity to 'less than adequate'
from 'adequate,' according to our criteria. At this stage, the
company has a EUR70 million RCF that maturing in December 2011
and a EUR100 million RCF maturing in December 2012. The outlook
revision also incorporates our view that Piaggio's credit ratios
may remain weak for the current rating, in light of the expected
further deterioration of the economic environment in Italy and
Western Europe," S&P said.

"The rating reflects our view of Piaggio's "fair" business risk
and 'aggressive' financial risk profiles, according to our
criteria," S&P related.

"In our base-case scenario for the coming quarters, we anticipate
that demand for two-wheel vehicles in Italy and Western European
will continue to be weak. In Western Europe, we assume that unit
sales will fall by about 10% in 2012. In our view, this will be
offset by the increase in scooter sales in the 'Asian five'
region (that is, Vietnam, Thailand, Philippines, Indonesia, and
Malaysia), which we expect will approach 150,000 units in 2012
from about 100,000 units in 2011. In 2012, we understand that
Piaggio should also start to produce scooters in India. Even
though the effect of unit sales in India on the company's overall
sales will probably be limited, we believe that this opens new
possibilities for the company's future expansion. We project a
slight decrease in Piaggio's EBITDA margin in 2012 of no more
than 1%, from our estimate of about 13.5% for 2011. We base our
projection on our expectation of ongoing weakness in European
sales, and our opinion that the company will need to support the
increase in sales in the Far East and India. Under this scenario,
we anticipate that Piaggio will maintain its Standard & Poor's-
adjusted debt to EBITDA slightly above the 3.5x that we consider
to be consistent with the current rating, both in 2011 and in
2012. We assume that the company will continue to invest in its
expansion in India and in the 'Asian five' region. In addition,
we expect that Piaggio's capital expenditures will be maintained
at about EUR100 million per year. Under this scenario, the
company's ability to generate significant amounts of cash to
deleverage will be very limited. In addition, in recent years,
shareholders have benefited from relatively constant dividends of
about EUR25 million per year, even when internally generated free
operating cash flow was not sufficient to cover the company's
cash outflow. The company also has a share buyback program, and
about EUR3 million-EUR5 million of shares are acquired annually.
Should the economic environment worsen beyond our current
expectations, we believe that Piaggio's willingness to adapt its
financial policy to a tougher environment will play an important
role in protecting the rating," S&P said.

"The negative outlook primarily reflects the possibility that we
would revise our assessment of Piaggio's liquidity to "less than
adequate" if the RCFs are not renegotiated by year-end 2011 or
early 2012, particularly in light of the company's significant
debt maturities in 2012 and the currently strained financial
markets. Over the coming months, we believe that Piaggio could
find it difficult to roll over its maturing debt as it has done
in the past. Under our base-case scenario, we assume that at
least EUR100 million of the EUR170 million RCFs maturing in 2011
and 2012 will be renewed," S&P said.

"We could lower the rating if Piaggio is not able to renegotiate
at least EUR100 million of RCFs by the end of January 2012, or if
the macroeconomic and financial environments deteriorate
significantly beyond our base-case expectations in the coming
months," S&P said.

"We could revise the outlook to stable if the company
successfully completes the renegotiation of the RCFs, and if the
economic environment in Western Europe does not deteriorate
beyond our base-case projections," S&P related.


SEAT PAGINE: Gets Restructuring Deadline Extension
--------------------------------------------------
Salamander Davoudi at The Financial Times reports that Seat
Pagine Gialle secured a further 14-day extension to agree the
terms of its financial restructuring with its debt and equity
holders to avoid administration.

The publisher's bondholders and shareholders last month agreed to
convert EUR1.2 billion (US$1.6 billion) of the company's debt
into equity but talks have stumbled over the conversion price,
the FT notes.  The company, which was due to pay a EUR52 million
coupon to its bondholders last month, has said it will continue
to withhold the payment until an agreement is reached, the FT
discloses.

According to the FT, if the bonds are converted at market value,
the creditors would control 75% of the company but a conversion
at nominal value would give them 95% control.

On Tuesday night, the company had secured agreement from the
required 75% of bondholders, the FT relates.  But only 65% of its
senior lenders have approved the restructuring and unanimity is
required from this lender group, the FT states.

Permira and Investitori Associati have now agreed to a conversion
at near-nominal value giving bondholders around 90% control but
CVC is not in agreement, the FT discloses.

Seat Pagine Gialle is one of the most highly leveraged media
companies in Europe with net debt of EUR2.7 billion, the FT
notes.

Seat has EUR1.4 billion of senior debt to pay off before 2014,
the FT discloses.  As part of Seat Pagine Gialle's proposed
financial restructuring, a further EUR600 million of senior debt
will be rescheduled, the FT says.

If the publisher does not manage to reach an agreement with all
parties by mid-December and the EUR52 million payment is not
made, Seat Pagine Gialle will have to file for insolvency, the FT
states.

                        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.


SEAT PAGINE: Credit Event Likely as Firm Misses Coupon Payment
--------------------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that a "failure to
pay" credit event on Seat Pagine Gialle SpA credit default swaps
appears more likely following the company's failure to pay a
coupon falling due Wednesday, market participants said.

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.


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


EURASIAN NATURAL: S&P Lowers Corporate Credit Rating to 'BB'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Kazakhstan-based mining group Eurasian
Natural Resources Corporation (ENRC) to 'BB' from 'BB+' and
removed it from CreditWatch with negative implications, where it
had originally been placed on June 15, 2011. The 'B' short-term
rating on ENRC was also affirmed. The outlook is stable.

"The downgrade reflects our view that ENRC still has progress to
make in re-establishing a track record of good corporate
governance and functioning of its board. Still, we acknowledge
that the company has taken positive steps following the, in our
view, major governance issues it had in June of this year,
including the departure of two independent directors, and its
group counsel and corporate secretary. We also believe that these
governance issues are likely to have adversely impacted ENRC's
access to equity and debt financing, which will likely require
time to rectify," S&P related.

"A new independent director has recently joined the board, and
the position of corporate Secretary and group counsel has been
filled. ENRC's CEO, Mr. Felix Vulis, has also withdrawn his
resignation," S&P said.

"We consider that ENRC's currently low debt and adequate
liquidity, with low short-term maturities, continue to underpin
the rating. We also note the apparent ability of the current
management team to oversee company operations during this period
of significant corporate governance upheaval," S&P said.

"The rating is also based on ENRC's stand-alone credit profile
(SACP), which Standard & Poor's assesses at 'bb'.  In addition,
the rating reflects our opinion that there is a 'low' likelihood
that the Republic of Kazakhstan (foreign currency BBB+/Stable/A-
2, local currency BBB+/Stable/A-2) would provide timely and
sufficient support to ENRC in the event of financial distress,"
S&P said.

"We continue to view ENRC's business risk profile as 'fair' and
its financial risk profile as 'significant.' The business risk
profile is constrained by the cyclicality of the global mining
industry and country risks in Kazakhstan, where ENRC mainly
operates. Supporting factors include low cost positions, a
long reserve life with substantial growth potential, and the
company's product diversity," S&P said.

"The stable outlook reflects our view of ENRC's significant
financial flexibility, coupled with its low debt and adequate
liquidity. We expect that the company will maintain moderate
leverage in the next 12 months, with an FFO-to-debt ratio
comfortably above 40% in 2012, despite potential drops in
current high iron ore and ferrochrome prices," S&P said.

"We could lower the rating on ENRC if major governance issues re-
emerge, particularly if we see they adversely affect company
operations. A downgrade could also follow a sharp deterioration
in liquidity, which could result from high capex spending in the
absence of new long-term financing. Such a scenario is, in our
opinion, remote at this stage," S&P said.

"We could raise the rating on ENRC if we perceive a track record
of its board functioning effectively and independently, within
the context of ENRC's concentrated ownership. A continued prudent
financial policy and perceived improved access to international
financial markets would also be important," S&P said.


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


BANKAS SNORAS: Vilnius Court Accepts Bankruptcy Application
-----------------------------------------------------------
The Baltic Times, citing LETA/ELTA, reports that Vilnius District
Court has accepted the application regarding the initiation of
bankruptcy proceedings against Snoras bank.

Under the law, the court must take the decision on this issue no
later than within 15 days from the date of submission of the
application, the Baltic Times notes.

The Bank of Lithuania delivered application on Snoras bankruptcy
on Monday, Nov. 28, the Baltic times recounts.

As reported by the Troubled Company Reporter-Europe on Nov. 28,
2011, Bloomberg News related that Lithuania's central bank said
Bankas Snoras AB, Lithuania's fifth biggest bank by assets, is
insolvent and will file for court protection from creditors to
avoid a costly bailout for taxpayers.  The central bank said in a
statement that the bank's financial situation is "worse than
previously identified" and saving the bank "would cost
significantly more and would take longer than the available
liquidity" at Snoras, Bloomberg discloses.  Governor Vitas
Vasiliauskas said at a news conference on Nov. 24 that some
LTL3.4 billion (US$1.3 billion) in assets are missing, according
to Bloomberg.

Bankas Snoras AB is Lithuania's fifth biggest lender.  Snoras
held LTL6.05 billion in deposits and had assets of LTL8.14
billion at the end of September.  It competes with Scandinavian
lenders including SEB AB, Swedbank AB (SWEDA), and Nordea AB.  It
also controls investment bank Finasta and Latvian lender Latvijas
Krajbanka AS.


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


STORK BV: Moody's Cuts Corp Family Rating to B2; Outlook Negative
-----------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Stork B.V. to B2 from B1. Moody's concurrently downgraded the
ratings of Stork's senior secured bank credit facilities to B1,
and the rating of its mezzanine facility to Caa1. The rating
outlook remains negative.

"The downgrade primarily reflects Moody's increased expectation
of pressure on the group's earnings and liquidity profile as the
challenging trading environment continues to stress Moody's
previous expectation of improving profitability in the current
year and next," says Anthony Hill, VP-Senior Analyst and Moody's
lead analyst for Stork. "We have made downward adjustments to
Moody's cash flow projections given Stork's relatively high
operating cost structure and the challenging macroeconomic
environment facing Stork's end customers, especially Stork
Technical Services ('STS')."

The rating action considers that Stork was already weakly
positioned in the B1 rating category with a negative outlook
given the uncertainties around a potential combination of RBG
Limited and STS. In addition, Moody's had anticipated steady
improvement of Stork's credit metrics over the coming months to
support the B1 rating -- an expectation that is now coming under
stress.

Moody's continues to positively note Stork's: (1) solid business
diversity given its coverage of the technical services market and
aerospace segment; (2) well-established market position as a
provider of integrated technical services for a diverse business
customer base in various industries; (3) good revenue visibility
in the aerospace division; and (4) the group's extended debt
maturity profile. However, the negative outlook reflects the
potential that Stork's rating could experience downward pressure
over the coming months from negative free cash flow generation,
which would further diminish Stork's liquidity profile,
potentially including cushion under its financial covenants.

The ratings outlook could stabilize if Stork: (1) were to
solidly, and consistently, generate positive free cash flows
going forward; and (2) were to maintain a Moody's adjusted debt
to EBITDA ratio below 5.0x; and (3) were to maintain a Moody's
adjusted EBITDA minus capex to Interest Expense ratio of 1.5x.
Moody's concerns are currently focused around Stork's liquidity
profile, so a downgrade could result due to further weakening of
that (including pressure on covenant headroom). Other triggers
for a downgrade could include adjusted leverage sustained above
6.0x, or EBITDA minus capex to Interest falling below 1.0x.

The principal methodology used in rating Stork was the Global
Business & Consumer Service Industry Rating Methodology published
in October 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.

Stork Group, headquartered in the Netherlands, generated revenues
of EUR 1.7 billion in 2010. The group is primarily involved in
two business lines. Stork Technical Services ("STS") provides
maintenance, management and overhaul services for large
industrial facilities and specialist services and products for
installations and systems primarily in the chemical, oil & gas,
power and other major industries and generated revenues of EUR
981 million in 2010. Fokker Technologies develops and produces
structural components, electrical wiring systems and landing
gears for aircraft and supplies spare parts, maintenance repair
support and engineering services to the aerospace industry.
Fokker Technologies generated revenues of EUR 616 million in
2010. Stork Group is ultimately owned by private equity firm
Candover, Eyrir Invest, and management.


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


BRISA CONCESSAO: Moody's Downgrades Debt Ratings to 'Ba1'
---------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
ratings of debt issued by Brisa Concessao Rodoviaria (BCR).
Concurrently, Moody's has downgraded to (P)Ba1 from (P)Baa3 the
rating of the company's Euro Medium Term Note (EMTN) program. The
outlook for the ratings is negative.

This rating action concludes the review announced on July 8,
2011.

Ratings Rationale

BCR's Ba1 rating is constrained by that of the government of the
Republic of Portugal (RoP, rated Ba2, negative outlook), the
company's exposure to economic stresses in the country and its
inability to disconnect itself from local economic and market
circumstances. In accordance with Moody's previously published
guidance, infrastructure and utility companies would not normally
be expected to have a rating of more than one or two notches
higher than the government of the country where the majority of
their business is located. Following the finalization of its
rating review, Moody's concluded to position BCR's rating at the
Ba1 level, one notch above that of the government of the RoP.

More specifically, Moody's had indicated that, to maintain the
previous Baa3 credit rating, BCR would have been able to survive
closure of the debt markets to Portuguese borrowers for a period
of at least two years on an ongoing basis in a downside stress
scenario incorporating lower revenues and higher debt costs.

Moody's acknowledges BCR's recent success in extending the term
of its bank facilities. However, the rating agency considers that
currently available lines are not sufficient to fully cover
maturing debt up to the end of 2013. More generally, in light of
the uncertainties charactering the functionality of debt markets
for Portuguese borrowers in the context of BCR's specific funding
needs, Moody's notes the risks associated with the company's
ability to maintain extended liquidity coverage on an ongoing
basis given debt maturities beyond 2013.

Whilst acknowledging the creditor protections incorporated within
the EMTN program, Moody's notes that BCR's linkage with the RoP's
creditworthiness is exacerbated by the company's lack of
diversification outside its domestic market, thus making the
company vulnerable to stresses in the country. In this regard,
the rating agency observes that BCR reported an 8% organic
decline in traffic (AADT) for Q3 2011 and a 5.7% reduction for
the year to date (in each case compared to the same period in
2010). A continued decline in traffic volumes would increase the
liquidity risks highlighted, although Moody's observes that BCR
is able to compensate, to some extent, for decreases in revenue
through reductions in its capital investment program and that the
company has recently reduced operating expenses through
efficiency gains.

BCR's ratings reflect (i) the stability and visibility of the
company's business model and cash flow generation under the terms
of a concession that extends to 2035; (ii) a road network that
covers Portugal from north to south and from east to west and
that is the backbone of the country's transport system; (iii) the
terms of the EMTN program which, whilst they do not result in a
full notch of uplift under Moody's methodology, are nevertheless
considered to provide a degree of creditor protection; and (iv)
prudent financial management. The ratings are, however,
constrained by the country risks (macroeconomic and financial)
associated with being based in Portugal, as evidenced by recent
declines in traffic volumes on the company's network.

The negative outlook reflects BCR's continuing exposure to the
deteriorating economic situation within Portugal and the need to
renew existing short-term facilities, or secure additional
funding in order to repay the EUR500 million bond maturing in
2013 - although Moody's notes that a significant proportion of
the necessary funding is already secured. It also takes into
account the negative outlook for Portugal's long-term government
bond ratings.

Moody's sees little potential for upward pressure on ratings
absent an upgrade in the sovereign rating. The ratings would
likely be adversely affected by (i) any deterioration in the
sovereign rating; (ii) a failure by BCR to raise additional
funding during 2012 to enable it to be in a position to repay the
2013 bonds; and (iii) significant further declines in traffic
volumes during 2012.

Headquartered in Lisbon, BCR is responsible for the operation of
1,095km of motorways of which, 1,013km are tolled. The network,
which comprises around 73% of the 1,494km of roads operated by
the Brisa Auto-estradas group in Portugal, accounts for 65% of
private tolled motorways in the country and represents 37% of the
national motorway network. Apart from the new airport link and
Poceirao and Castanheira de Ribatejo platform links (3km), the
network has been fully operational since July 2007.

The principal methodology used in these ratings was Operational
Toll Roads published in December 2006.


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


* ROMANIA: S&P Affirms 'BB+/B' Foreign Currency Sovereign Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed the 'BB+/B' foreign-
currency sovereign credit ratings on Romania. The local-currency
long- and short-term ratings were lowered to 'BB+/B' from 'BBB-
/A-3'. The outlook is stable. The transfer and convertibility
(T&C) assessment is 'BBB+' and the recovery rating is '3'.

"The rating action follows the implementation of Standard &
Poor's revised methodology and assumptions for sovereign ratings.
Under our revised methodology, the gap between the local- and
foreign-currency ratings on most of our rated sovereigns is
narrowing. This is because we believe governments are likely to
have fewer incentives to differentiate between their local- and
foreign-currency debt in the event of a debt restructuring, given
the increasing globalization of markets. In accordance with our
criteria for sovereign ratings, the local-currency rating on
Romania is equalized with the foreign-currency rating. This is
based on our view of the high level of euroization of the
economy," S&P said.

"The ratings on Romania are supported by the country's improving
fundamentals; the fiscal deficit is declining, the current
account deficit is narrowing, and the economy is rebalancing.
However, despite benefiting from an IMF program, the economy
remains vulnerable to external shocks owing to still-high, albeit
declining, external debt and dominant ownership of the banking
sector by Greek and Austrian parents. Foreign institutions own
85% of total banking sector assets. Austrian banks dominate,
holding around 40% of total market share, while Greek banks'
subsidiaries account for 24% of capital and 14% of the assets of
the banking sector. These subsidiaries are autonomous from their
parents, which we believe will likely limit spillover effects if
confidence in the Greek banking sector weakens further. In our
view, however, there is a risk that if foreign parent banks run
into difficulties they may significantly reduce cross-border
exposure to their subsidiaries, thereby reducing credit activity.
That said, we note that the parents of nine of the largest banks
operating in Romania reaffirmed their commitment to maintaining
the capitalization of their local subsidiaries at above 11%," S&P
related.

"The government has so far adhered to the reforms agreed with the
IMF under its current program. The stand-by arrangement (SBA)
with the IMF was renewed in March 2011 for two years, on a
precautionary basis. However, commitment to structural reform or
fiscal restraint may be tested by the upcoming parliamentary
election, scheduled for end-2012, especially if complemented by
a concurrent significant slowdown in the European economy, which,
we believe, could weaken Romania's balance of payments
performance and raise external vulnerabilities," S&P said.

"We anticipate the government will reduce its general government
deficit to just below 5.0% of GDP in 2011, from 9% in 2009 on the
accruals-based EU ESA 95 accounting standard. The government's
projections call for the deficit to fall to 3% of GDP in 2012.
Continued spending prudence should help to further reduce the
deficit in 2012, in our view, although the target is unlikely to
be fully met absent further measures, which the government may be
reluctant to undertake in an election year. To meet the target,
the authorities are relying on already-implemented reforms such
as means testing for social welfare benefits, reducing the number
of social assistance programs, and pension reform, as well as
remaining committed to continued public-sector wage and pension
restraints," S&P said.

"While general government arrears have declined to 0.2% of GDP
currently, mainly at the local government level, state-owned
enterprises' (SOEs') arrears are high at 3.4% of GDP. These are
being addressed as part of the reform program. The government is
currently reforming SOEs in the energy and transport sectors by
liberalizing prices and restructuring, although we believe it may
be reluctant to close loss-making companies ahead of the
parliamentary election," S&P said.

"The country's external debt trajectory has slowed significantly
following a period of rapid growth. We expect Romania's current
account deficit will narrow to 4.1% of GDP in 2011, from 11.6% in
2008. External debt net of government and financial-sector
external assets is estimated at 67.5% of current account receipts
at year-end 2011, from 25.5% at year-end 2006, and is expected to
decline thereafter as external leverage in the private-sector
decreases," S&P said.

"The stable outlook reflects our opinion that Romania's
government will continue to consolidate its public finances
largely in line with specified targets. We expect that the new
SBA will minimize the risk of fiscal slippage ahead of the 2012
election and that the parents of Romanian banking subsidiaries
will continue to roll-over their cross-border advances," S&P
said.

"If, against our expectations, the government fails to adhere to
its fiscal consolidation and structural reform strategy, or
should Romania's external deficits widen significantly without
improving the country's long-term growth potential, the ratings
could come under pressure," S&P said.

"Conversely, if the government continues to push through with
structural measures to improve competitiveness and potential
growth, while building a sustained track record of fiscal
prudence, we could raise the ratings," S&P said.


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


HYDROMASHSERVICE CJSC: S&P Assigns 'B+' Rating on RUB3-Bil. Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' issue rating
and 'ruA+' Russia national scale rating to the proposed Russian
ruble (RUB) 3 billion unsecured notes to be issued by CJSC
Hydromashservice, a subsidiary of Russia-based pumps and oil
and gas equipment manufacturer HMS Hydraulic Machines & Systems
Group PLC (HMS Group). "The recovery rating on this debt
instrument is '5', indicating our expectation of modest (10%-30%)
recovery in the event of a payment default," S&P said.

"At the same time, the 'BB-' long-term corporate credit rating
(CCR) and 'ruAA-' Russia national scale rating on HMS Group were
affirmed. The outlook is stable," S&P said.

"The ratings on the proposed notes are subject to our
satisfactory review of the final terms of the issue," S&P
related.

"The ratings on HMS Group reflect our assessment of its business
risk profile as 'weak' and its financial risk profile as
'significant,'" S&P said.

"We understand that HMS Group will use the proceeds of the
proposed issuance to finance its ambitious business expansion
program over the medium term," S&P said.

"The proposed notes will be guaranteed by a surety provided by
JSC HMS Pumps, an operating company that generates about 7% of
HMS Group's consolidated EBITDA, and by the ultimate parent
holding company HMS Group. The issuer of the proposed notes, CJSC
Hydromashservice, accounts for 61% of HMS Group's EBITDA," S&P
said.

"The ratings on HMS Group are primarily constrained by our view
of its narrow geographical diversification and the risk inherent
in doing business in Russia, where the group derives around 90%
of its total revenues. An additional rating constraint is the
execution risk HMS Group faces on the delivery of contracts," S&P
said.

Supporting factors for the ratings include HMS Group's leading
position in Russian pump markets. We believe that HMS Group
should be able to protect its market shares and take full
advantage of the positive prospects for the Russian pumps
industry, fuelled by the need for replacement and expansion of
the country's infrastructure. Another key rating support is HMS
Group's very solid balance sheet following the IPO and subsequent
repayment of around 70% of debt in February 2011.

"The recovery rating on the proposed notes is constrained by the
unsecured nature of the notes, the existence of significant bank
debt that we deem will rank ahead of the notes in insolvency, the
absence of covenant protection for noteholders, and Russia's
relatively creditor-unfriendly insolvency regime. The recovery
rating is supported by HMS Group's significant asset valuation,"
S&P related.

"In our view, HMS Group will continue to benefit from the
currently healthy market fundamentals for pumps and flow control
solutions in Russia. We also believe that the group will be able
to maintain its EBITDA margins in the mid-teens range thanks to
its continued focus on high-margin, integrated solution projects.
In addition, we assume that HMS Group will manage its order
backlog successfully," S&P said.

"At the current rating level, we think HMS Group has sufficient
headroom for growth via small debt-financed acquisitions.
Nevertheless, ratings stability is dependent on management
maintaining its ratio of debt to EBITDA at less than 2x at all
times. We will also continue to monitor HMS Group's penetration
in the pump replacement, maintenance, and services markets and
the contribution of these markets to future earnings," S&P said.

"Negative rating actions could result from material operational
issues in the execution of a contract, leading to lower margins
than we assume at present or large payment delays. Larger debt-
financed acquisitions than we currently anticipate, resulting in
a more leveraged balance sheet, could also trigger a downgrade,"
S&P said.

"Although unlikely at this stage, we could raise the ratings if
HMS Group were to develop a stronger-than-anticipated performance
over time and a longer track record of relatively stable and
profitable operations, as well as maintain strict compliance with
its financial policy," S&P related.


OTP BANK: Moody's Lowers Long-Term Deposit Ratings to 'Ba2'
-----------------------------------------------------------
Moody's Investors Service has downgraded to Ba2 from Ba1 the
long-term local and foreign currency deposit ratings of OJSC OTP
Bank (Russia); and simultaneously placed the ratings on review
for further downgrade.

Ratings Rationale

The downgrade and the review for further downgrade on OTP
Russia's long-term ratings follow Moody's recent announcement
that it lowered OTP Russia's parent - OTP Bank (Hungary) -
positioning within the D+ bank financial strength rating (BFSR)
category, now corresponding to a standalone rating of Ba1 from
Baa3 on the long-term scale, and maintained its BFSR on review
for downgrade.

OTP Russia's Ba2 deposit ratings continue to incorporate a very
high probability of parental support from OTP Bank (Hungary), and
OTP Russia consequently receives a one-notch uplift from its Ba3
standalone credit strength. Moody's assessment of a very high
probability of parental support is based on (i) OTP Russia's
significant operational integration with its parent, (ii) the
strong strategic fit of OTP Russia with OTP Bank Group, as Russia
is one of three strategic foreign markets for the group, and
(iii) the parent's demonstrated willingness to provide ongoing
capital and liquidity support. At the same time, there remains
the risk that the Russian market could lose its attractiveness,
such that OTP Russia may be considered non-strategic at a future
date.

Principal Methodologies

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007.

Headquartered in Moscow, Russia, OTP Russia reported total assets
of RUB97.5 billion (US$3.2 billion) and equity of RUB14.5 billion
(US$476 million), according to the bank's audited IFRS financial
report at year-end 2010. The bank is one of the market leaders in
unsecured retail lending in Russia, with the target products
being point of sale (POS) and credit cards. OTP Bank (Hungary)
controls over 97% of OTP Russia's shares.


OTP BANK: Moody's Puts NSR on Review for Further Downgrade
----------------------------------------------------------
Moody's Interfax Rating Agency has downgraded long-term national
scale credit rating (NSR) of OJSC OTP Bank (Russia) to Aa2.ru
from Aa1.ru, and placed the NSR on review for further downgrade.

Ratings Rationale

OTP Russia's Aa2.ru NSR now maps to the Ba2 global scale long-
term local currency rating (assigned by Moody's Investors
Service).

The downgrade of OTP Russia's NSR reflects the downgrade of the
bank's long-term global scale ratings to Ba2 from Ba1 by Moody's
Investor's Service.  The downgrade of OTP Russia's global scale
rating, in turn, reflects the weaker standalone strength of OTP
Bank (Hungary), OTP Russia's support provider. The parent's
standalone strength now maps to Ba1 on the long-term scale
(mapped from the D+ standalone bank financial strength rating
(BFSR)).

The review for further downgrade on OTP Russia's Aa2.ru NSR
reflects Moody's review for further downgrade on the global scale
long-term ratings.

Principal Methodologies

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007.

Headquartered in Moscow, Russia, OTP Russia reported total assets
of RUB97.5 billion (US$3.2 billion) and equity of RUB14.5 billion
(or US$476 million), according to the bank's IFRS financial
report at year-end 2010. The bank is one of the market leaders in
unsecured retail lending in Russia, with the target products
being point of sale (POS) and credit cards. OTP Bank (Hungary)
controls over 97% of OTP Russia's shares.

Moody's Interfax Rating Agency's National Scale Ratings (NSRs)
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".ru" for Russia. For
further information on Moody's approach to national scale
ratings, please refer to Moody's Rating Implementation Guidance
published in August 2010 entitled "Mapping Moody's National Scale
Ratings to Global Scale Ratings".

Moody's Interfax Rating Agency (MIRA) specializes in credit risk
analysis in Russia. MIRA is a joint-venture between Moody's
Investors Service, a leading provider of credit ratings, research
and analysis covering debt instruments and securities in the
global capital markets, and the Interfax Information Services
Group. Moody's Investors Service is a subsidiary of Moody's
Corporation (NYSE: MCO).


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


AMCI HABITAT: Seeks Voluntary Protection From Creditors
-------------------------------------------------------
Charles Penty at Bloomberg News reports that AMCI Habitat SA said
in a filing to regulators on Wednesday that the company's board
agreed to seek voluntary protection from creditors after a
financial institution began to execute mortgage guarantees.

AMCI Habitat SA engages in housing development primarily in
Spain.


FONCAIXA CONSUMO: Moody's Assigns 'Ba3' Rating to Serie B Note
--------------------------------------------------------------
Moody's Investors Service has assigned these definitive ratings
to the debt issued by FONCAIXA CONSUMO 1, Fondo de Titulización
de Activos:

   -- EUR2,618.0MM Serie A Note, Assigned Aaa (sf)

   -- EUR462,0MM Serie B Note, Assigned Ba3 (sf)

Ratings Rationale

FONCAIXA CONSUMO 1, FTA is a securitization of loans granted by
CaixaBank (Aa3 Negative Outlook/P-1, Caixa) to Spanish
individuals. CaixaBank is acting as Servicer of the loans while
Gesticaixa S.G.F.T., S.A. is the Management Company ("Gestora").

As of October 2011, the provisional pool was composed of a
portfolio of 285,281 contracts granted to 285,259 obligors
located in Spain. The assets were originated between 1993 and
2011, with a weighted average seasoning of 3.5 years and a
weighted average remaining term of 13.5 years. Around 69.3% of
the portfolio is secured by flexible mortgage guarantees over
residential properties. The mortgage pool consists on the
securitization of the first draw-down (47.7%) and further draw-
downs (52.3%) of a mortgage product which is structured like a
line of credit. Both first and further draw-downs are secured by
first (81.5%) or second (18.5%) lien mortgages on residential
property (second lien only when Caixa has the first lien). The
purpose of the loans is always different than acquisition the of
a residence (mainly consumer). The remaining 30.7% of the
portfolio are unsecured consumer loans granted to individuals
resident in Spain. Geographically, the pool is concentrated
mostly in Catalonia (40.2%) and Madrid (14.7%). The provisional
portfolio, as of its poolcut date, included 2.5% of loans in
arrears between 0 and 30 days.

In Moody's view, the deal has the following credit strengths: (i)
a reserve fund fully funded upfront equal to 5% of the notes to
cover potential shortfalls of interest and principal, and (ii) a
strong interest rate swap in place, which provides a guaranteed
excess spread (1.0%) on a notional equal to the portfolio net of
loans more than 90 days in arrears (iii) the good securitization
track-record of Caixa in the Spanish market.

Moody's notes that the transaction features a number of credit
weaknesses, including: (i) 30.6% of the pool volume is related to
unsecured loans, which are typically riskier than mortgage loans
and benefit from a lower recovery rate in the event of a debtor
default; (ii) 18% of the mortgage portfolio are second liens
loans; and (iii) almost 21% of the portfolio correspond to self
employed debtors, which usually perform worse than permanent
employees with a monthly stable source of income.

Moody's analysis focused primarily on (i) an evaluation of the
underlying portfolio of loans; (ii) historical performance
information, internal scoring system information provided by the
originator, and other statistical information; (iii) the credit
enhancement provided via excess-spread, the cash reserve and the
subordination of the notes; (iv) the liquidity support available
in the transaction, by way of principal to pay interest, and the
reserve fund; (v) the provisions for the appointment of a back-up
servicer; and (vi) the legal and structural integrity of the
transaction.

In its quantitative assessment, Moody's assumed an expected
portfolio loss of 3.5% of the original balance and an equivalent
MILAN Aaa Credit Enhancement number of 16.3%. Moody's also tested
other sets of assumptions under its Parameter Sensitivities
analysis. The results show that the model output for class A
notes would be 1 notch lower if the mean default rate assumption
was to increase to 9%, all other parameters being kept unchanged.
Similarly, the model output would be 2 notches lower if the
recovery rate assumption was to decrease to 30%. For more
details, please refer to the full Parameter Sensitivity analysis
included in the New Issue Report of this transaction.

The V Score for this transaction is Medium, which is in line with
the score assigned for the Spanish RMBS sector and representative
of the volatility and uncertainty in the Spanish RMBS 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 Major EMEA RMBS Sectors
" published in June 2009.

The methodologies used in this rating were Moody's Approach to
Rating RMBS in Europe, Middle East, and Africa published in
October 2009, Moody's Approach to Rating Consumer Loan ABS
Transactions published in July 2011, Moody's Updated Methodology
for Rating Spanish RMBS published in October 2009, Cash Flow
Analysis in EMEA RMBS: Testing Structural Features with the MARCO
Model (Moody's Analyser of Residential Cash Flows) published in
January 2006 and Revising Default/Loss Assumptions Over the Life
of an ABS/RMBS Transaction published in December 2008.

In rating this transaction, Moody's used ABSROM to model the cash
flows and determine the loss for each tranche. 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 tranche. As such, Moody's analysis encompasses
the assessment of stressed scenarios.


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


FERROMET: Gets Second Extension to Restructuring Deadline
---------------------------------------------------------
According to Metal Bulletin, Ferromet's spokesman confirmed on
Wednesday that the company has been granted a second extension to
the deadline to complete its restructuring.

The Swedish trading house received initial approval for a
restructuring in June after it built up debts and had its credit
line pulled by Danske Bank, Metal Bulletin relates.

It now has until February to complete the restructuring, which
depends on the sale of its chrome assets in eastern Europe, Metal
Bulletin says.

The spokesman told Metal Bulletin in October that the initial
deadline for restructuring was August, but the company was given
an extension until late November because the August deadline did
not allow sufficient time for due diligence to be carried out on
the assets by potential buyers.

A market source told Metal Bulletin that the latest provision
suggests the company has satisfied authorities that it has a good
chance of securing a deal.

According to Metal Bulletin, documents filed with Sweden's
bankruptcy court dated June 23 show that Ferromet had debts
totaling SEK52.7 million (US$7.8 million).  But it has already
paid its debts to warehousing companies to ensure the free
movement of material and some other debts may have also been
settled, Metal Bulletin notes.

The chrome assets -- a concentrator plant and a mine in Kosovo
and Albania -- are valued at SEK20.5 million and the subsidiary
owes the parent company SEK8.3 million, Metal Bulletin discloses.

Ferromet is a Swedish metal trading company.


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


OTP BANK: Moody's Cuts Long-term Local Deposit Rating to 'Ba2'
--------------------------------------------------------------
Moody's Investors Service has downgraded the Ba1 long-term local
deposit rating of OTP Bank (Ukraine) (OTBU) to Ba2 and
simultaneously placed it on review for downgrade. The D- Bank's
Financial Strength Rating, the B3 long-term foreign currency
deposit rating, Not-Prime short-term local and foreign currency
deposit ratings remained unchanged along with a stable outlook,
Aa1.ua National Scale deposit Rating remained unchanged as well
but carries no specific outlook.

Ratings Rationale

According to Moody's, the downgrade and review for possible
downgrade on OTPU's local currency deposit rating follows Moody's
recent announcement that it lowered OTP Ukraine's parent - OTP
Bank (Hungary) - positioning within the D+ bank financial
strength rating (BFSR) category, now corresponding to a
standalone rating of Ba1 from Baa3 on the long-term scale, and
maintained its BFSR on review for downgrade.

OTPU's Ba2 deposit ratings incorporate a very high probability of
parental support from OTP Bank (Hungary), and consequently
receive a one-notch uplift from the bank's Ba3 standalone rating
(BCA). Moody's assessment of a very high probability of parental
support is based on (i) the significant operational integration,
(ii) strong strategic fit of OTP with OTP Bank Group, as Ukraine
is one of three strategic foreign markets for the group, and
(iii) the parent's demonstrated willingness to provide ongoing
capital and liquidity support. At the same time, there remains
the risk that the Ukrainian market could lose its attractiveness,
such that OTPU may be considered non-strategic at a future date.

Principal Methodologies

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007.

Headquartered in Kyiv, Ukraine, as of December 31, 2010 OTP
reported total audited IFRS assets of UAH25 billion (US$ 3.1
billion) and net income of UAH344 million (US$43.2 million).


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


BATTERSEA POWER STATION: Creditors Seek Administration
------------------------------------------------------
Neil Callanan and Simon Packard at Bloomberg News report that
creditors of Battersea Power Station, led by Lloyds Banking Group
Plc and Ireland's National Asset Management Agency, asked a court
to put the landmark property's owner into administration.

According to Bloomberg, a statement said that lenders owed
GBP502 million (US$788 million) will ask an English court on
Dec. 12 to have administrators appointed for various units of
Battersea Power Station Shareholder Vehicle Ltd.  They applied to
a Jersey court on Wednesday to put the companies into
administration, a U.K. form of bankruptcy protection, Bloomberg
relates.

The companies "are not in a position to satisfy these demands for
repayment," Bloomberg quotes Jersey-based Real Estate
Opportunities Plc, which owns 54% of Battersea Power Station
Shareholder Vehicle, as saying in the statement.

The lenders rejected a GBP262 million bid last week from SP Setia
Bhd., Malaysia's biggest public traded property developer by
sales, to purchase the senior debt related to the London
landmark, Bloomberg recounts.

Irish property entrepreneurs Richard Barrett and John Ronan, who
control Real Estate Opportunities, have relied on the support of
Lloyds and NAMA to proceed with a GBP5.5 billion redevelopment of
the site that features the derelict coal-fired power station that
closed 28 years ago, Bloomberg notes.

Real Estate Opportunities, majority owned by the duo through
their company Treasury Holdings, acquired the site five years ago
and has been seeking a partner to back the redevelopment project
after obtaining planning consent in November last year, Bloomberg
discloses.  Following a debt-for-equity swap involving some of
the creditors, ownership of the 38-acre site transferred to
Battersea Power Station Shareholder Vehicle, Bloomberg states.

Battersea Power Station, with four 350-foot-high smokestacks, is
Europe's largest brick building.


FWAG: Gets Numerous Bids From Unnamed Organizations
---------------------------------------------------
The Westmorland Gazette reports that efforts are continuing to
save Farming and Wildlife Advisory Group after it went into
administration last month.

Several unnamed organizations have shown an interest in taking
over the county's branch, although nothing concrete has been
confirmed, according to The Westmorland Gazette.

"Currently we are seeking a sale of the company's business and
its assets in the hope of preserving the future of this well-
established charity," the report quoted administrator Adrian
Allen, of Baker Tilly, as saying.

As reported in the Troubled Company Reporter-Europe on Nov. 23,
2011, Farmers Guardian reports that the Farming and Wildlife
Advisory Group, which is in administration, is appealing for
financial support from the farming industry to enable it to
continue as a national body.  The process is being overseen by
Baker Tilly while talks continue to secure the future of the
business, according to Farmers Guardian.  Philip Cook, who was
appointed chairman shortly before FWAG went into administration,
has called for financial backing from industry and the farming
community to enable FWAG to survive as a nationally co-ordinated
body, Farmers Guardian disclosed.  The report relayed that any
support received will be applied to facilitate the re-
establishment of a central hub 'to serve as a conduit for
contracts, funding and commercial initiatives on a national scale
and to assist the start-up of regional enterprises'.

Farming and Wildlife Advisory Group (FWAG) operates through a
network of more than 30 local county groups each with voluntary
committees throughout the UK, supported by more than 80 Farm
Conservation Advisers and a network of farmers and landowners who
guide the groups.


GKN HOLDINGS: Moody's Changes Outlook on Ba1 Ratings to Positive
----------------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook on the Ba1 corporate family rating (CFR) and debt ratings
of GKN Holdings Plc.

Ratings Rationale

"[The] outlook change reflects GKN's currently strong positioning
in the Ba1 rating category," says Rainer Neidnig, a Moody's Vice
President -- Senior Analyst and lead analyst for GKN. "The
positive outlook also reflects Moody's expectation that GKN will
be able to gradually improve its credit metrics further, unless
the macroeconomic environment weakens materially," adds Mr.
Neidnig.

GKN's leverage metrics for the last-12-months period ended June
2011 position the group's rating at the Ba1-Baa3 borderline, with
debt/EBITDA of 3.0x (net debt/EBITDA of 2.2x) and retained cash
flow (RCF)/net debt of 29%. Moody's expects that GKN's credit
metrics for the full-year 2011 will be slightly weaker because of
two recent bolt-on acquisitions by the group but still position
the rating close to the Baa3 rating category.

Moreover, the positive outlook reflects the investment-grade
characteristics of GKN's business risk profile, specifically (i)
the group's size (last-12-months sales of GBP5.3 billion); (ii)
its end-market diversification (approximately 40% of revenues
unrelated to the automotive industry); and (iii) its strong
position in selected niche markets.

At the same time, Moody's cautions that, although GKN's end
markets follow largely different business cycles, each of them is
strongly exposed to the economic environment. In Moody's view,
the major risks faced by GKN are in the macroeconomic
environment, such as a further deterioration of growth prospects
for the world economy. These macroeconomic risks could derail the
prospects of a near-term rating upgrade.

GKN recently acquired the all-wheel drive components business of
German Getrag and Stromag, a German manufacturer of hydraulic
clutches, electro-magnetic brakes and flexible couplings for use
in various industries. Acquisition costs amounted to GBP444
million. Although GKN's net debt increased as result of the
acquisitions, Moody's expects the group's credit metrics to
weaken only moderately because of the earnings contribution of
the acquired businesses. According to GKN, both businesses
generated EBITDA of GBP67 million in 2010. Given that the
acquisitions will be partly funded from existing cash, Moody's
estimates that the group's gross debt ratios will only be
marginally impacted. Moody's estimates that GKN's debt/EBITDA for
2011 will be close to 3.0x pro forma the full -year earnings
contribution of Getrag Driveline Products and Stromag.

Downgrades:

   Issuer: GKN Holdings plc

   -- Senior Unsecured Regular Bond/Debenture, Downgraded to
      LGD4, 63 % from LGD4, LGD4, 52 %

Outlook Actions:

   Issuer: GKN Holdings plc

   -- Outlook, Changed To Positive From Stable

What Could Change the Rating Up/Down

Moody's would consider upgrading the ratings if there is clear
visibility that GKN is able to achieve credit metrics in line
with an investment-grade rating on a sustainable basis. This
would require (i) EBIT margins to remain at levels of 6% or
above; (ii) debt/EBITDA to decrease to notably below 3.0x through
the cycle; and (iii) RCF/net debt to remain markedly above 20% on
a sustainable basis. Moreover, an upgrade would require the
generation of positive free cash flow on a sustainable basis.

Given the positive outlook on the ratings, Moody's currently
considers a downgrade to be unlikely. However, downward rating
pressure could arise upon a deterioration in GKN's earnings and
cash flow, which would be contrary to current expectations. Such
a development would be exemplified by negative free cash flow or
a failure to maintain leverage at levels of debt/EBITDA below
3.5x and RCF/net debt falling markedly below 20%.

The Ba1 (LGD4-63%) rating of the GBP176 million and GBP350
million notes issued by GKN Holdings Plc recognizes that pension
obligations and trade claims at the level of operating
subsidiaries are substantial in size and have higher structural
seniority in the debt structure of GKN group. The assigned
expected loss given default rate for the notes at 63% is higher
than the average rate for all obligations of the entire GKN group
(50% in line with Moody's standard assumption for corporates with
bank and bond debt). The notes are not notched as a reflection of
(i) the investment-grade debt structure, (ii) the CFR's strong
positioning in the Ba1 category and (iii) the potential of
upgrade back to investment-grade. However, a notching might be
considered in future, if the above factors are not viewed as
sufficient anymore to mitigate the sizeable pension obligations
and trade payables.

Principal Methodology

The principal methodology used in rating GKN Holdings plc 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 Redditch, UK, GKN Holdings Plc acts as a
finance, investment and holding company of the GKN group ("GKN").
GKN Holdings plc is a wholly owned subsidiary of GKN plc, the
ultimate holding company of GKN. GKN is an international
engineering group with operations in more than 30 countries and
more than 40,000 employees. The group operates through four main
divisions: Driveline (45% of 2010 revenues), Powder Metallurgy
(14%), Aerospace (27%) and Land Systems (13%). The Driveline and
Powder Metallurgy divisions primarily serve the automotive
industry. Aerospace supplies both the civil and military aircraft
market and Land Systems primarily serves the agriculture,
construction & mining and industrial equipment sectors.

In 2010, GKN recorded revenues of GBP5.1 billion. Including GKN's
pro-rata share in joint ventures, the group's revenues amounted
to GBP5.4 billion. GKN plc is listed on the London Stock
Exchange.


GLOBAL SHIP: Obtains Loan-to-Value Waiver Until November 2012
-------------------------------------------------------------
Global Ship Lease, Inc., a containership charter owner, disclosed
that it had entered into an agreement with its lenders to waive
until Nov. 30, 2012, the requirement under its credit facility to
conduct loan-to-value tests.

The credit facility requires that loan-to-value, which is the
ratio of outstanding borrowings under the credit facility to the
aggregate charter-free market value of the secured vessels,
cannot exceed 75%.  Due to the current downturn in the
containership market and consequent impact on vessel values, the
Company previously anticipated that loan-to-value would exceed
75% at the scheduled test date of Nov. 30, 2011.  Accordingly,
the Company engaged its lenders to waive the loan-to-value
requirement.

Under the terms of the agreement, the loan-to-value test has been
waived until the test due on Nov. 30, 2012.  The credit facility
agreement provides that during the period of such a waiver:

    -- Amounts borrowed under the credit facility will bear
       interest at LIBOR plus a fixed interest margin of 3.50%.

    -- The Company will be unable to pay dividends to common
       shareholders.

    -- Cash flow will be used to prepay borrowings under the
       credit facility; the amount of cash in excess of
       US$20 million as at Nov. 30, 2011 (and quarterly
       thereafter) will be the amount of the prepayment due
       Dec. 31, 2011 (and quarterly thereafter).

If loan-to-value as of Nov. 30, 2012, is not greater than 75%, as
provided in the credit facility agreement, the fixed interest
margin will become 3.00% (or 2.50% if loan-to-value is no more
than 65%), dividends on common shares can be paid and the
prepayment of borrowings will become fixed at US$10 million per
quarter.

Ian Webber, Chief Executive Officer of Global Ship Lease, stated,
"Global Ship Lease's long-term time charter contracts generate
stable revenues and predictable cash flows, which are largely
unaffected by the loan-to-value ratio.  The strength of our
business model has allowed us to suspend the testing of loan-to-
value at a time when containership values continue to experience
declines.  The waiver insulates the Company, until Nov. 30, 2012,
from the volatility of asset values.  Further, we are
aggressively paying down debt, thus strengthening our balance
sheet for the long-term benefit of shareholders. Since August
2009, we have reduced our debt by US$100.1 million."

Mr. Webber concluded, "In a challenging global economic
environment, our time charters continue to perform as expected.
Our fleet of 17 vessels has an average remaining time charter
duration of over eight years on a weighted basis, representing
total contracted revenue of US$1.2 billion.  Only two of our 17
charters are due for renewal in the next five years.  We maintain
a positive long-term outlook on our future business prospects and
intend to continue to focus on preserving the Company's financial
strength for the long-term benefit of Global Ship Lease and its
shareholders."

                       About Global Ship Lease

London, England-based Global Ship Lease (NYSE: GSL, GSL.U and
GSL.WS) -- http://www.globalshiplease.com/-- is a containership
charter owner.  Incorporated in the Marshall Islands, Global Ship
Lease commenced operations in December 2007 with a business of
owning and chartering out containerships under long-term, fixed
rate charters to world class container liner companies.

Global Ship Lease owns 17 vessels with a total capacity of 66,297
TEU with a weighted average age at June 30, 2010, of 6.3 years.
All of the current vessels are fixed on long-term charters to CMA
CGM with an average remaining term of 8.6 years.  The Company has
contracts in place to purchase two 4,250 TEU newbuildings from
German interests for approximately US$77 million each that are
scheduled to be delivered in the fourth quarter of 2010.  The
Company also has agreements to charter out these newbuildings to
Zim Integrated Shipping Services Limited for seven or eight years
at charterer's option.


J&G INNS: Goes Into Administration, to Sell Hotels
--------------------------------------------------
The Financial reports that J&G Inns has fallen into
administration selling its two properties, the Lord Crewe Arms
hotel in Blanchland and Warkworth House hotel in Alnwick, in the
process.

The hotels will remain open as buyers are being sought, according
to The Financial.

"Both hotels will continue to operate as normal with all forward
bookings fulfilled in the usual manner while the hotels are fully
marketed by instructed agents Christie & Co," The Financial
quoted Andrew Haslam, joint administrator of Begbies Traynor in
Newcastle, as saying.

The report notes that the joint administrators have instructed
Christie + Co of Newcastle upon Tyne as their agents.

The administrator can be reached at:

         Andrew Haslam
         BEGBIES TRAYNOR
         2 Collingwood Street
         Newcastle upon Tyne
         Tyne and Wear, NE1 1JF
         United Kingdom
         Tel: +44 (0)191 269 9822
         E-mail: andrew.haslam@begbies-traynor.com

J&G Inns operates two hotels in the north of England.


MOUCHEL GROUP: Posts Wider Loss as New Deals Dry Up
---------------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that stricken U.K.
outsourcing firm Mouchel Group PLC Wednesday posted a much wider
fiscal year pretax loss, blaming takeover speculation for hurting
its ability to win new business, and said it wouldn't breach
banking covenants after amending its credit facilities.

As reported by the Troubled Company Reporter-Europe on Oct. 24,
2011, The Financial Times related that Mouchel was forced to
knock GBP8.6 million (US$13.6 million) off profits estimates as a
result of "over-optimistic" accounting on local authority
contracts and a pensions error by a council client's auditors.

Mouchel Group plc -- http://www.mouchel.com/-- is a consulting
and business services company supporting clients in developing
and managing their infrastructure assets.  The Company operates
in three segments: Government Services, Regulated Industries and
Highways.


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


* Final Bids for Distressed Property Loans Due
----------------------------------------------
Dow Jones' Daily Bankruptcy Review reports that final bids for a
GBP1 billion (US$1.6 billion) portfolio of distressed commercial
property loans being sold by Lloyds Banking Group PLC are due on
Wednesday, people familiar with the situation told Dow Jones.


* BOOK REVIEW: Inside Investment Banking, Second Edition
--------------------------------------------------------
Author:  Ernest Bloch
Publisher: BeardBooks,
Softcover: 430 pages
List Price: $34.95

Review by Henry Berry

Even though Bloch states that "no last word may ever be written
about the investment banking industry," he nonetheless has
written a timely, definitive book on the subject.

Bloch wrote Inside Investment Banking book after discovering that
no textbook on the subject was available when he began teaching a
course on investment banking.  Bloch's book is like a textbook,
though one not meant to be restricted to classroom use.  It's a
complete, knowledgeable study of the structure and operations of
the field of investment banking.  With a long career in the
field, including work at the Federal Reserve Bank of New York,
Bloch has the background for writing the book.  He sought the
input of many of his friends and contacts in investment banking
for material as well as for critical guidance to put together a
text that would stand the test of time.

While giving a nod to today's heightened interest in the
innovative securities that receive the most attention in the
popular media, Inside Investment Banking concentrates for the
most part on the unchanging elements of the field.  The book
takes a subject that can appear mystifying to the average person
and makes it understandable by concentrating on its central
processes, institutional forms, and permanent aims.  The author
shows how all aspects of the complex and ever-changing field of
investment banking, including its most misunderstood topic of
innovative securities, leads to a "financial ecology" which
benefits business organizations, individual investors in general,
and the economy as a whole.  "[T]he marketplace for innovative
securities becomes, because of its imitators, a systematic
mechanism for spreading risk and improving efficiency for market
makers and investors," says Bloch. .

For example, Bloch takes the reader through investment banking's
"market making" which continually adapts to changing economic
circumstances to attract the interest of investors.  In doing so,
he covers the technical subject of arbitrage, the role of the
venture capitalist, and the purpose of initial public offerings,
among other matters.  In addition to describing and explaining
the abiding basics of the field, Bloch also takes up issues
regarding policy (for example, full disclosure and government
regulation) that have arisen from the changes in the field and
its enhanced visibility with the public.  In dealing with these
issues, which are to a large degree social issues, and similar
topics which inherently have no final resolution, Bloch deals
indirectly with criticisms the field has come under in recent
years.

Bloch cites the familiar refrain "the more things change, the
more they remain the same" and then shows how this applies to
investment banking.  With deregulation in the banking industry,
globalization, mergers among leading investment firms, and the
growing number of individuals researching and trading stocks on
their own, there is the appearance of sweeping change in
investment banking.  However, as Inside Investment Banking shows,
underlying these surface changes is the efficiency of the market.
Anyone looking for an authoritative work covering in depth the
fundamentals of the field while reflecting both the interest and
concerns about this central field in the contemporary economy
should look to Bloch's Inside Investment Banking.

After time as an economist with the Federal Reserve Bank of New
York, Ernest Bloch was a Professor of Finance at the Stern School
of Business at New York University.


                            *********

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, 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 * * *