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        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 16, 2011, Vol. 12, No. 249

                            Headlines



F R A N C E

FINANCIERE SPIE: S&P Affirms 'B' Preliminary Corp. Credit Rating
RENAULT S.A.: Moody's Assigns 'Ba1' Probability of Default Rating


G E R M A N Y

COMMERZBANK AG: Government Prepares for Possible State Bail-Out
SOLON SE: Files for Insolvency After Bank Talks Fail


H U N G A R Y

* HUNGARY: Rate of Displaced Assets in Company Liquidations High


I R E L A N D

DIRECTROUTE FINANCE: S&P Lowers Senior Debt Rating to 'BB-'
IMS MAXIMS: Expects to Exit Court Protection; Finds Investor


I T A L Y

FERRETTI SPA: Lenders Agree to Sell Business to China's SHIG
FONDIARIA-SAI: Fitch Cuts IFS Rating 'BB-'; Outlook Negative
WIND TELECOMUNICAZIONI: Moody's Cuts Corp. Family Rating to 'B1'


K A Z A K H S T A N

KAZAKH MORTGAGE: Moody's Reviews 'Ba3' Rating on Class B Notes
KAZAKHTELECOM JSC: Fitch Affirms Issuer Default Rating at 'BB'


L A T V I A

LIDO: Expects to Resume Normal Operations Soon


N E T H E R L A N D S

ZEELAND ALUMINIUM: Declared Bankrupt by Middelburg Court


P O R T U G A L

COMBOIOS DE PORTUGAL: S&P Puts 'B-' Credit Rating on Watch Neg.


R O M A N I A

FORNETTI ROMANIA: Files for Insolvency in Timis Court


R U S S I A

* IRKUTSK OBLAST: S&P Affirms 'BB' Issuer Credit Ratings


S P A I N

BANCO CAM: Moody's Reviews Ratings on Covered Bonds for Upgrade
BBVA EMPRESAS 6: Moody's Assigns '(P)B3' Rating to Serie C Notes
CAJA DE AHORROS: Losses May Total EUR17 Billion, El Mundo Says
SANTANDER HIPOTECARIO: Moody's Assigns 'C' Rating Serie C Note


S W E D E N

SAAB AUTOMOBILE: Court-Appointed Administrator to Quit
NOBINA AB: S&P Lowers Long-Term Corporate Credit Rating to 'B-'


S W I T Z E R L A N D

BARRY CALLEBAUT: S&P Raises Corporate Credit Rating From 'BB+'


T U R K E Y

KUVEYT TURK: Fitch Affirms Individual Rating at 'D'


U K R A I N E

* CITY OF KHARKOV: Fitch Assigns 'B(exp)' Rating ton Bonds
* REGION OF DNEPROPETROVSK: Fitch Assigns 'B' Currency Ratings


U N I T E D   K I N G D O M

ASTON MARTIN: S&P Lowers Long-Term Corp. Credit Rating to 'B+'
CRUSADER HOLIDAYS: Motts Leisure Buys Firm Out of Administration
FOCUS DIY: Customers & Creditors Won't Get Money Back
LLOYDS TSB: Fitch Affirms 'CC' Rating on Tier 1 Subordinated Debt
ON DEMAND: Goes Into Administration, Seeks Buyer for Brands

VON ESSEN: Fowey Hall Sold Back to Luxury Family Hotels


X X X X X X X X

* S&P Reviews Ratings on Central & Eastern European Banks
* BOOK REVIEW: Legal Aspects of Health Care Reimbursement


                            *********


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F R A N C E
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FINANCIERE SPIE: S&P Affirms 'B' Preliminary Corp. Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on France-
based provider of multi-technical services Financiere SPIE S.A.
(SPIE) to negative from stable. "At the same time, we affirmed
our 'B' long-term preliminary corporate credit rating on SPIE,"
S&P said.

"The outlook revision primarily reflects our view that under our
stress scenario SPIE's credit ratios will not likely improve to
levels commensurate with the current rating. Our stress case
anticipates further deterioration of the economic environment in
France and Western Europe, which would constrain the company's
revenues and margins. Under our base case, we expect a slightly
stronger performance for full-year 2011 than we had anticipated
in July 2011," S&P said.

"We are maintaining the rating as preliminary because the
financial structure for the recently completed leveraged buyout
that was presented to us when we assigned the rating has been
only partially completed. This is because the EUR375 million bond
has not yet been issued, while a high-yield bridge facility has
been put in place. If the bond issue is not completed by the end
of January 2012, we expect that we would withdraw our preliminary
rating," S&P said.

"The rating reflects our view of SPIE's "fair" business risk and
'highly leveraged' financial risk profiles, according to our
criteria. In our base-case scenario for the coming quarters, we
anticipate that the demand for the services provided by SPIE in
France and Western European will remain in positive territory. We
assume that in 2012 revenues will grow by about 4% and that the
EBITDA margin will remain at least at 6%. We assume that SPIE
will be able to maintain its production due to the limited
cyclicality of its business and the low volatility in earnings
that support its "fair" business risk profile," S&P said.

"Under our base case, we assume that SPIE's ratio of funds from
operations (FFO) to Standard & Poor's-adjusted debt (including
preferred shares) will stand at more than 6% for full-year 2011.
We anticipate that the ratio will further improve in 2012 thanks
to SPIE's positive discretionary cash flow generation. We also
assume that the EBITDA interest coverage will be maintained at
about 2x. The company's current debt level is very high for the
rating. Under our base-case scenario, we assume that SPIE should
be able to maintain and improve its ratio of FFO to adjusted debt
at about 10%. In 2011, we expect that SPIE's acquisition spend
will likely exceed our annual EUR35 million-40 million ceiling by
about EUR15 million. Nevertheless, we believe that, over the next
few years, SPIE would be able to reduce its expenditure in the
event of financial stress," S&P said.

"The negative outlook primarily reflects our expectations that,
under our stress scenario, SPIE's financial ratios in 2012 will
be below the levels we consider commensurate with the rating. Our
benchmark levels include an EBITDA interest coverage maintained
at about 2x and FFO to debt above 6% and improving toward 10%.
Our stress scenario assumes revenue growth of about 2% and an
EBITDA margin of about 5.5%, compared with 4% and 6.5% under our
base case. We note that under our base case -- which assumes a
weaker economic environment in France, SPIE's main market -- the
company's ratios are consistent with our ceilings for the current
rating. We note also that in 2008-2009 SPIE was able to improve
its EBITDA margin on flat revenues despite operating in a weak
economic environment. Nevertheless, we believe that the company's
ability to improve its EBITDA margin could not be taken for
granted in the event of a new recession given that the EBITDA
margin is at higher level than it was three years ago. Given
SPIE's very high leverage, any small decrease in operating
results could jeopardize the improvement of the ratios toward
levels more consistent with the current rating, in our view," S&P
said.

"We could lower the rating if any sizable shortfall in sales and
earnings constrained SPIE's ability to service its debt, in turn
reducing EBITDA cash interest coverage to less than 1.5x and FFO
to debt to less than 6%. The ratings could also come under
downward pressure if SPIE's free operating cash flow turns
negative following operating shortfalls," S&P said.

"Despite a weakening economic environment, we could revise the
outlook to stable in the coming quarters if SPIE maintains its
sound cash generation, thereby maintaining interest coverage at
about 2x, and if the company slowly deleverages," S&P said.


RENAULT S.A.: Moody's Assigns 'Ba1' Probability of Default Rating
-----------------------------------------------------------------
Moody's Investors Service affirmed the Ba1 corporate family
rating of Renault S.A. and changed the outlook to stable from
positive. At the same time, Moody's has assigned a probability of
default rating of Ba1 and affirmed the Ba1 rating of the debt
issued by Renault S.A.

Ratings Rationale

The outlook change to stable reflects increasing macroeconomic
headwinds which will adversely impact the European passenger car
demand in 2012 where Renault generates the majority of volumes
and Moody's expectation that the weakness of the European car
market cannot be fully compensated by volume growth in other
parts of the world. Concurrently, Moody's caution an increasing
price competition in some parts of Europe which might put
pressure on volume producers; Renault's already weak standalone
operating margin (excluding income from associates) would in such
a scenario be impacted. Moody's acknowledge that, as all car
manufacturers, also Renault was adversely impacted by supply
disruptions resulting from the tsunami in Japan in the first half
2011. At the same time Renault still faces structural
overcapacities in Europe whilst the company is undertaking
significant investments in Emerging countries in order to
leverage growth opportunities. Therefore, Moody's believe that
Renault's free cash flow generation will be limited over the
short- to medium term. "In the current environment, an upgrade to
investment grade has become more distant for Renault" cautions
Falk Frey, Moody's analyst for European car manufacturers. A
significant improvement in profitability at Renault's automobile
division before the contribution from associates remains a pre-
condition for a return to the investment grade rating category.
Excluding income from associates Renault's profitability is very
weak as reflected in an operating margin of -0.1% for the last
twelve months ending in June 2011. This is partly attributable to
an adverse mix effect given Renault's inability to deliver
sufficient cars with diesel engines in the first half 2011. Even
though Moody's expect some improvement of Renault's profitability
by year-end Moody's see certain headwinds from an increasing
pricing pressure in some parts of Europe and the high volatility
of foreign exchange movements. Furthermore, Moody's expects
Renault's European capacity utilization rate to remain at low
levels.

Assignments:

   Issuer: Renault S.A.

   --  Probability of Default Rating, Assigned Ba1

Outlook Actions:

   Issuer: Renault S.A.

   -- Outlook, Changed To Stable From Positive

The Ba1 rating remains supported by the group's business profile
with solid market positions in various regions, the successful
introduction of its entry level range and the benefits from its
alliance with Nissan (Baa1/positive). The current rating also
considers the group's conservative financial policy with a
healthy liquidity and balanced debt maturity profile.

However, the rating is constrained by Renault's weak standalone
profitability and heavy reliance on Nissan. Moreover, the rating
incorporates Renault's historically uneven product portfolio with
a high dependency on a few successful models as well as the
group's limited geographical diversification with around 70% of
revenues being generated in Europe. This leaves Renault
vulnerable to declining passenger car demand in France and
Western Europe in 2012. Moody's also cautions possible margin
pressure from rising R&D needs, intense price competition in
Europe and adverse foreign exchange movements.

The stable outlook assumes that Renault will be able to at least
halt market share losses in Europe and burns no significant cash
through the cycle. Moreover, the rating incorporates the
expectation that the at-equity income from Nissan and other
associates will not deteriorate materially.

The ratings could come under downward pressure in case of (i) an
erosion in Renault's competitive position in its key markets
reflected in market share losses, (ii) evidence that the market
environment would turn worse than anticipated with regards to
volumes or prices, (ii) the company's inability to turn around
the operating performance of its automobile division as well as
(iv) a sizeable negative free cash flow in 2012.

An upgrade to Baa3 could be envisaged longer term in case Renault
would demonstrate improving market share performance in its key
markets as well as a significant recovery in its operating
performance (excluding the contribution from Nissan, AVTOVAZ and
its remaining stake in AB Volvo) with operating margins of above
2% on a sustainable basis. This should also be reflected in
Debt/EBITDA ratios in the 2.5x-3.5x range. In addition, Moody's
would expect the company to generate a positive Free Cash Flow
through the cycle of around EUR300-750 million per annum.

At June 30, 2011, Renault's principal liquidity sources consisted
of cash on balance sheet in the amount of EUR7.1 billion,
availability under undrawn committed credit lines of EUR4.0
billion, as well as potential cash flow generation from
operations over the next 12 months. These cash sources provide a
good coverage for the major liquidity requirements that could
arise during the next 12 months. These consist of short-term debt
maturities of approximately EUR3.3 billion, capital expenditures,
working capital funding, day-to-day needs as well as expected
dividend payments.

Renault S.A. Ba1 debt rating recognizes that there exists some
bank debt as well as trade claims at the level of operating
subsidiaries which are in aggregate material in size and have
higher structural seniority in the debt structure of Renault S.A.
The debt has nonetheless not be notched as a reflection of (i)
the investment-grade debt structure of the group with significant
cash detained at the top level and (ii) the fact that the Nissan
holding -- which represents a very material part of the group's
consolidated value for creditors - is located at Renault S.A.

The principal methodology used in rating Renault S.A. was the
Global Automobile Manufacture Industry Methodology published in
June 2011. 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 Boulogne-Billancourt, France, Renault S.A. is
one of Europe's leading car manufacturers. The two other brands
offered by Renault are Dacia (Romania) and Renault Samsung Motors
(South Korea). In addition, Renault provides financing to dealers
and end-customers through its wholly owned finance company, RCI
banque. In the last twelve months ending in June 2011, the group
sold 2.7 million vehicles and reported total group revenues of
EUR40.4 billion.



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G E R M A N Y
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COMMERZBANK AG: Government Prepares for Possible State Bail-Out
---------------------------------------------------------------
Gerrit Wiesmann and James Wilson at The Financial Times report
that the German government has begun preparations for a possible
state bail-out of Commerzbank AG if it fails to present a
convincing plan by January 20 to fill a EUR5.3 billion capital
gap identified by regulators.

German chancellor Angela Merkel's cabinet on Wednesday agreed a
bill to reinstate a state-backed bank rescue fund next year, a
move that could pave the way for state aid to Commerzbank,
Germany's second-largest bank by assets, the FT relates.

Among the measures in the bill are provisions for BaFin,
Germany's financial regulator, to force banks to accept state
help if it thinks a bank's plans to raise capital are
insufficient, the FT discloses.

According to the FT, officials in Berlin are privately skeptical
that Commerzbank can keep to its pledge to shore up its capital
without using more state funds.  The bank received more than
EUR18 billion of aid during the financial crisis and remains 25%
state-owned, the FT recounts.

The FT says Berlin's plans to reintroduce the state rescue fund
also include a new provision for banks to shunt portfolios of
sovereign bonds into a state-backed "bad bank".  This could help
Commerzbank offload Eurohypo, its struggling property subsidiary
that is weighed down with sovereign debt, the FT states.

Nomura analyst Chintan Joshi, as cited by the FT, said that
transferring bonds to the government at above market value would
be a "straight bail-out" and therefore unlikely.  "We do believe
that a bail-out will come with pain attached . . . we do not
think Germany can provide a lucrative bail-out to Commerzbank in
the current climate," he wrote in a note.

As reported by the Troubled Company Reporter-Europe on Dec. 12,
2011, Reuters reported that Commerzbank stood by its commitment
to avoid taking more help from Berlin, which would tip it nearer
to full nationalization.  "We stand by our intention not to make
use of additional public funds," Reuters quoted Eric Strutz,
finance director, as saying in a statement.  Europe's banks must
find EUR114.7 billion (GBP97.8 billion) of extra capital, more
than predicted two months ago, to make them strong enough to
withstand the euro zone debt crisis and restore investor
confidence, Reuters related.  The European Banking Authority
(EBA) said that German banks need to find EUR13.1 billion, more
than double the 5.2 billion estimated in October, Reuters
disclosed.  Commerzbank needs EUR5.3 billion and Deutsche Bank
needs EUR3.2 billion, Reuters noted.

Headquartered in Frankfurt am Main, Germany, Commerzbank AG --
http://www.commerzbank.com/-- is the parent company of a
financial services group active around the world.  The group's
operating business is organized into six segments providing each
other with mutually beneficial synergies: Private and Business
Customers, Mittelstandsbank, Central and Eastern Europe,
Corporates & Markets, Commercial Real Estate and Public Finance
and Treasury.


SOLON SE: Files for Insolvency After Bank Talks Fail
----------------------------------------------------
Stefan Nicola at Bloomberg News report Solon SE said in a
statement on Tuesday that the company filed for insolvency after
failing to reach an "amicable solution" with banks and investors.

Solon had sought to speed up cost cuts and extend a year-end
deadline to repay a EUR275 million (US$357 million) loan to
Deutsche Bank AG and a group of seven German banks, Bloomberg
relates.

The country's solar manufacturers including Q-Cells SE and
Solarworld AG are reeling from rising foreign competition just as
demand ebbs in Germany, the biggest photovoltaic market last
year, Bloomberg discloses.

Solon is seeking "to use opportunities to restructure within the
insolvency process," Bloomberg quotes Therese Raatz, a
spokeswoman, as saying on Wednesday.

According to Bloomberg, Sylvia Ratzlaff, a spokeswoman for Solon,
said that the insolvency administrator, Ruediger Wienberg of law
firm HWW Wienberg Wilhelm, arrived at company headquarters in
Berlin and started talks with company executives.

"According to our forecasts, Solon would not have been able to
cover its financing costs before 2014, despite the assumption of
massive cost cuts and a strong sales increase in 2013," WestLB AG
analyst Katharina Cholewa, as cited by Bloomberg, said in note.

Meanwhile, Bloomberg News' Jeff Black, citing Financial Times
Deutschland, reports that the German federal government and the
states of Berlin and Mecklenberg-Vorpommern will lose around
EUR146 million (US$189.5 million) owing to the insolvency of
Solon.

Bloomberg relates that the newspaper said investors had been
ready to provide EUR40 million in new capital if creditors
including Deutsche Bank AG and Commerzbank AG had been willing to
forgo a portion of their loans to the company.

Berlin, Germany-based Solon SE is a publicly traded solar
company.  The company employs more than 800 people at
subsidiaries in Germany, Italy, France and the U.S.


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H U N G A R Y
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* HUNGARY: Rate of Displaced Assets in Company Liquidations High
----------------------------------------------------------------
MTI-Econews, citing a study by Transparency International,
reports that about 60% of corporate assets are displaced in
Hungarian companies undergoing liquidation, well over the 40%
average for Europe as a whole.

According to MTI, TTI's Judit Dietz-Blasko said on Monday that
displaced assets of Hungarian companies under liquidation come to
HUF300 billion-HUF500 billion a year, an amount accompanied by
the loss of 50,000 to 80,000 jobs.  She blamed the discrepancy
first of all on Hungary's much amended law on bankruptcy and
liquidations, arguing that it allows assets of troubled companies
to be displaced into friendly partners, MTI relates.

The number of mandatory and liquidation procedures in Hungary
dwarfs the number of bankruptcy protection procedures, MTI notes.


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DIRECTROUTE FINANCE: S&P Lowers Senior Debt Rating to 'BB-'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its issue rating on
the senior debt of Republic of Ireland-based road project
DirectRoute (Limerick) Finance Ltd. (ProjectCo) to 'BB-' from
'BB+'. "At the same time, we revised the recovery rating on the
senior debt to '1' from '2'," S&P said.

The bonds retain an unconditional and irrevocable guarantee
provided by monoline insurer MBIA U.K. Insurance Ltd. (MBIA U.K.;
B/Negative/--) of payment of scheduled interest and principal.
Under Standard & Poor's criteria, a rating on monoline-insured
debt reflects the higher of the rating on the monoline and
Standard & Poor's underlying rating (SPUR). In this case, the
rating on the bonds reflects the SPUR as it is higher than the
current rating on MBIA U.K.

"The downgrade reflects our view that, based on information in
the new financial model, the projected financial profile of the
project is considerably weaker than that originally forecast and
than our previous base-case credit scenario," S&P said.

"Further analysis of traffic volumes in 2010 by ProjectCo and its
technical adviser (TA) has revealed that the bulk of the current
shortfall appears to be associated with the project's failure to
attract intra-urban traffic from the existing city roads on to
the project road. In comparison with the original forecasts at
financial close in 2006, the shortfall in traffic volume for the
aforementioned section of the road for 2010 is about 74%,
compared with approximately 8% for the main road section, and a
total traffic shortfall of approximately 32%. This is
particularly significant because, in our view, the initial ramp-
up phase of any user-pays toll-road project is critical in
establishing the longer-term traffic performance of a road. In
our experience, there are usually limited prospects for the
future recovery of any underperformance," S&P said.

"We have developed a revised set of base-case assumptions for use
with the new financial model. Our assumptions incorporate a
decline in traffic volumes in 2012, reflecting the weak economic
position of the Irish economy, followed by a recovery in 2013-
2014, and lower, but more sustained, growth thereafter. Although
volatility in near-term traffic volumes would have no immediate
financial impact on the project due to the terms of the existing
traffic guarantee, in the longer term, it could lead to a weaker
financial position than we currently anticipate," S&P said.

"In our view, in the near term, traffic volumes are uncertain in
the context of current economic difficulties and the operations
and maintenance element of the project's cost structure still
needs to be finally confirmed," S&P related.

"We could take a negative rating action if the projected
financial profile of the project were to deteriorate further --
for example, should actual costs be greater than projected. A
similar outcome could result if actual traffic volumes are lower
than forecast," S&P said.

"We could take a positive rating action if the projected
financial profile of the project were to improve. This could
occur, for example, if actual traffic volumes grow faster than we
currently anticipate or if cost reductions exceed our current
assumptions," S&P said.


IMS MAXIMS: Expects to Exit Court Protection; Finds Investor
------------------------------------------------------------
Lyn Whitfield at eHealth Insider reports that IMS Maxims has
announced that it will shortly leave court protection with a
major new investor in place.

The company was forced to seek the shelter of the Irish courts
from its creditors in August, after another company that it had
formed a new business with went into administration, eHealth
Insider recounts.  However, it was only able to obtain an
examinership from the High Court in Dublin because it was judged
to have a good chance of emerging as a going concern, eHealth
Insider notes.

On Wednesday, chief executive Shane Tickell told eHealth Insider
that it would formally leave the court's protection on Tuesday,
after which it would have 21 days to pay its creditors, eHealth
Insider relates.  As long as it meets its obligations, it will
then be free of court oversight, eHealth Insider says.

All of the shares of IMS Maxims have been bought by Thomas
Anderson, who is a well-known business figure in Ireland, and
probably best known for running the Empire Cinema Group in the
UK, eHealth Insider discloses.

Mr. Tickell, as cited by eHealth Insider, said it had been able
to run normally during the examinership "which demonstrates the
high levels of confidence our customers have in IMS Maxims and
its products."

However, the company has had to cut its costs by 20% and to shed
14 jobs, so it will start the New Year with 55 staff, eHealth
Insider states.

Mr. Tickell said it has also carried out an internal
restructuring to make sure its research and development followed
world-class processes and standards, eHealth Insider notes.

IMS Maxims has its headquarters in Dublin and supplies IT systems
to the public sector in Ireland and the UK.  Some of its most
prominent NHS customers include the Royal Cornwall Hospitals NHS
Trust and Clatterbridge Centre for Oncology NHS Foundation Trust.


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FERRETTI SPA: Lenders Agree to Sell Business to China's SHIG
------------------------------------------------------------
Anousha Sakoui and Guy Dinmore at The Financial Times report that
Ferretti SpA has secured a deal with lenders to sell itself to
China's Shandong Heavy Industry Group.

According to the FT, people close to the deal said that Royal
Bank of Scotland, Oaktree Capital and Strategic Value Partners,
were among lenders that agreed to sell their claims to the
Chinese manufacturer of construction and agricultural machinery
in a deal that will see the company's debts cut from EUR685
million to EUR116 million, while it receives EUR180 million of
additional funding.

SHIG will take control of the company, but lenders will have the
opportunity to subscribe for around 25% of a EUR100 million
equity injection, which has been underwritten by RBS and SVP, the
FT discloses.  An EUR80 million revolving credit facility will
also be provided, the FT notes.

While Oaktree and SVP had previously proposed a deal that would
have seen them sell their claims to SHIG for an undisclosed
price, leaving other lenders with just a 15 cent pay-out on the
euro, it failed to win enough support among other creditors,
according to the FT.

Under the new plan, all lenders will get the same pay-out, the FT
says.  An Italian court must approve the deal, which could take
two to three months, but someone close to the deal said no
obstacles were expected, the FT notes.

Under the new ownership the production and style of Ferretti will
remain Italian, as requested by its Chinese partners, the FT
states.  Norberto Ferretti, chairman of Ferretti, will continue
to play a role in the company, the FT discloses.

Ferretti SpA is an Italian luxury yacht maker.


FONDIARIA-SAI: Fitch Cuts IFS Rating 'BB-'; Outlook Negative
------------------------------------------------------------
Fitch Ratings has downgraded Assicurazioni Generali's Insurer
Financial Strength (IFS) rating to 'A-' from 'AA-', Fondiaria-
SAI's IFS rating to 'BB-' from 'BB+', Societa Reale Mutua di
Assicurazioni's IFS to 'BBB+' from 'A-' and ITAS Mutua's IFS
rating to 'BBB' from 'BBB+'.  At the same time, Fitch has
affirmed Mapfre SA's Issuer Default Rating (IDR) at 'A-'.  These
ratings actions also apply to the entities' core subsidiaries.
The Outlooks are Negative.

The rating actions follow Fitch's assessment of the insurers'
pro-forma capital adequacy amid challenging investment
conditions, particularly in Italy and Spain, including ongoing
pressure from heightened government bond yields.  Fitch has
undertaken a series of stress tests in Italy and Spain, and has
concluded that some insurers' large investment concentrations in
sovereign debt justify/require distinction relative to similarly
rated peers.  The potential for these concentrations to result in
poor capital performance under extreme scenarios is a key driver
of the rating actions.

Current market price declines and recent pricing volatility of
sovereign debt have already moderately weakened insurers' capital
positions as assessed by the regulatory solvency margin and
Fitch's own assessment of capital adequacy, albeit to varying
degrees.  Given significant market and fundamental uncertainties
with regards to sovereign debt, the possibility of further
deterioration in the capital market performance of sovereign debt
could ultimately more materially impair the insurers' capital
positions.  The rating actions consequently reflect the degree of
sensitivity of the insurers' capital adequacy to stress test
assumptions over the credit quality of their holdings of Italian
and Spanish government and bank debt.

As part of its analysis, Fitch evaluated each insurers'
fundamental attributes, including various degrees of leveraging
of domestic government debt relative to capital.  Fitch also
evaluated the existing strength of capital, and its ability to
absorb future losses.

If the outlook for sovereign debt improves and stabilizes, it is
likely that insurer ratings could be upgraded should their actual
and pro-forma capital ratios also improve.

As the agency has previously indicated, Italian insurers may not
be able to pass on most of the losses incurred from an unlikely
default of Italian government debt.  In an extreme scenario of a
sovereign default, the ability of insurers to pass losses on to
policyholders would be significantly impaired, as the return on
customer portfolios may be below the minimum guaranteed to
policyholders. Insurers would be liable for any additional
losses.

The rating actions also reflect Fitch's view that the environment
in Italy and Spain is highly challenging and rapidly changing,
which means that operating profitability is likely to remain
pressurized in the medium term.  The agency has sharply revised
down its near and medium-term growth forecasts for Italy as the
economy has not recovered in line with expectations and the
eurozone crisis could push Italy into recession.  Fitch now
expects the Italian economy to contract by 0.5% in 2012 followed
by 0% growth in 2013. This could exert negative pressure on sales
of insurance products in 2011 and 2012.

However, underwriting profitability in the non-life segment
continues to recover as pricing and claims experience improve.
In addition, life insurers' credit profiles remain solid, with
technical profitability and margins expected to hold up due to a
better business mix.

The rating actions are as follows:

Assicurazioni Generali SpA:

  -- IFS Downgraded to 'A-' from 'AA-'; IDR Downgraded to 'BBB+'
     from 'A+'; Outlook Negative

Generali (Schweiz) Holding AG:

  -- IDR Downgraded to 'BBB-' from 'A-'; Outlook Negative

Generali Iard:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Generali Vie:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Generali Deutschland:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Generali Deutschland Pensionskasse AG:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Cosmos Versicherung AG:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Cosmos Lebensversicherungs-AG:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

AachenMuenchener Lebensversicherung AG:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Generali Lebensversicherung AG:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

AachenMuenchener Versicherung AG:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Generali Versicherung AG:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Central Krankenversicherung AG:

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Generali Espana, SA

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Generali Versicherung AG (Austria)

  -- IFS Downgraded to 'A-' from 'AA-'; Outlook Negative

Generali's debt ratings are as follows:

Senior unsecured:

  -- EUR1,500m 4.75% guaranteed notes due 12 May 2014: downgraded
     to 'BBB+' from 'A+'

  -- EUR500m 3.875% notes due 6 May 2015: downgraded to 'BBB+'
     from 'A+'

  -- EUR750m 4.875% notes due 11 November 2014: downgraded to
     'BBB+' from 'A+'

  -- EUR1,750m 5.125% notes due 16 September 2024: downgraded to
     'BBB+' from 'A+'

Hybrid capital instruments/notes:

  -- EUR1,250m perpetual notes 5.479% until February 2017,
     thereafter Euribor plus 214bp: downgraded to 'BBB-' from
     'A-'

  -- GBP495m perpetual notes 6.416% until February 2022,
     thereafter Libor plus 220bp: downgraded to 'BBB-' from 'A-'

  -- EUR1,275m perpetual notes 5.317% until June 2016, thereafter
     Euribor plus 210bp: downgraded to 'BBB-' from 'A-'

  -- GBP700m perpetual notes 6.214% until June 2016, thereafter
     Euribor plus 208bp: downgraded to 'BBB-' from 'A-'

  -- GBP350m perpetual notes 6.269% until June 2026, thereafter
     Euribor plus 235bp: downgraded to 'BBB-' from 'A-'

Subordinated notes:

  -- EUR750m fixed-/floating-rate subordinated callable notes due
     on 20 Jul 2022: downgraded to 'BBB-' from 'A-'

Mapfre Familiar

  -- IFS affirmed at 'A+', Outlook revised to Negative from
     Stable

Mapfre Global Risks Cia De Seguros Y Reaseguos

  -- IFS affirmed at 'A+', Outlook revised to Negative from
     Stable

Mapfre Vida SA De Seguros Y Reaseguros

  -- IFS affirmed at 'A+', Outlook revised to Negative from
     Stable

Mapfre Re Compania De Reaseguros S.A

  -- IFS affirmed at 'A', Outlook revised to Negative from Stable

Mapfre SA

  -- Long-term IDR affirmed at 'A-', Outlook revised to Negative
     from Stable

  -- EUR700m 5.91% subordinated debt due 2037 with step-up in
     2017 affirmed at 'BBB-'

MAPFRE U.S.A. Corp.:

  -- Long-term IDR affirmed at 'A-', Outlook revised to Negative
     from Stable

  -- USD300m 5.95% senior notes due February 26, 2013 affirmed at
     'BBB+'

Commerce Insurance Company

  -- IFS affirmed at 'A+', Outlook revised to Negative from
     Stable

Citation Insurance Company

  -- IFS affirmed at 'A+', Outlook revised to Negative from
     Stable

Commerce West Insurance Company

  -- IFS affirmed at 'A+', Outlook revised to Negative from
     Stable

American Commerce Insurance Company

  -- IFS affirmed at 'A+', Outlook revised to Negative from
     Stable

Societa Reale Mutua di Assicurazioni

  -- IFS downgraded to 'BBB+' from 'A-', Outlook revised to
     Negative from Stable

Reale Seguros Generales

  -- IFS downgraded to 'BBB+' from 'A-', Outlook revised to
     Negative from Stable

ITAS Mutua

  -- IFS downgraded to 'BBB' from 'BBB+', Outlook revised to
     Negative from Stable

Fondiaria-SAI S.p.A.

  -- IFS downgraded to 'BB-' from 'BB+', Outlook Negative

Milano Assicurazioni S.p.A.

  -- IFS downgraded to 'BB-' from 'BB+', Outlook Negative


WIND TELECOMUNICAZIONI: Moody's Cuts Corp. Family Rating to 'B1'
----------------------------------------------------------------
Moody's has downgraded the corporate family rating (CFR) and
probability of default rating (PDR) of Wind Telecomunicazioni SpA
to B1 from Ba3. Moody's also downgraded the senior secured bank
facilities and senior secured notes due in 2018 to Ba3 from Ba2,
the senior notes due in 2017 to B3 from B2 and the PIK notes due
in 2017 to Caa1 from B3. The outlook on the ratings is stable.

Ratings Rationale

The downgrade reflects Moody's expectation that Wind's revenue
and EBITDA are likely to be under pressure going forward in the
context of (i) a deteriorating macro-economic environment and
(ii) tougher regulatory measures for telecoms in Italy. As a
result, Wind's leverage is likely to be close to 5.0x adjusted
debt to EBITDA (including the PIK notes) for the foreseeable
future with limited de-leveraging prospects.

Whilst telecom spend is traditionally highly correlated to
private consumption, Moody's believes Wind's positioning within
the Italian market coupled with relatively low telecom retail
prices in Italy should mitigate to some extent the impact of
austerity measures and any price-led competitive pressure on
Wind's operating performance.

At the same time, Moody's notes the recent announcement from the
Italian telecom regulator of an accelerated decline in scheduled
mobile termination rates, which should weigh on group revenue and
to a more limited extent on EBITDA generation. Moody's believes
Wind will likely need to intensify cost efficiency measures to
counteract current adverse trends on the group's profitability
level.

Wind recently raised EUR500 million debt bridge financing to fund
part of the upfront payment related to recently allocated 4G
spectrum. Although incremental indebtedness incurred only
represents around 0.2x additional leverage, Moody's believes that
a B1 CFR better reflects the combination of tougher market
conditions and the more constrained financial flexibility of the
group.

The B1 rating continues to factor in positively the ownership of
Wind by the broader and financially stronger VimpelCom group.

As of September 30, 2011, Wind had EUR418 million in cash and
equivalents (pro forma for the upfront 4G down-payment) and an
undrawn EUR400 million revolving credit facility. With EUR250
million due in 2012 and in 2013, Moody's cautions that the
currently adequate liquidity position of the group could reduce
if group cash flows are not sufficient to cover upcoming debt
maturities and external funding sources were to prove
increasingly expensive.

The stable outlook reflects Moody's expectations that Wind will
maintain its competitive position in the Italian telecom market
and successfully counter the impact of current adverse trends
such that profitability, cash flow generation and liquidity are
not impaired going forward.

Further negative rating actions could be triggered if there are
visible signs of further deterioration in the operating
environment and/or competition putting additional pressure on
profitability and cash flows such that leverage moves above 5.25x
and group liquidity deteriorates.

Moody's believes any positive action would require material de-
leveraging such that group leverage remains below 4.5x adjusted
debt to EBITDA and free cash flow is meaningfully positive.

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


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


KAZAKH MORTGAGE: Moody's Reviews 'Ba3' Rating on Class B Notes
--------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the ratings of the notes issued by Kazakh Mortgage
Backed Securities 2007-1 B.V.:

   -- US$123M A Notes, Ba2 (sf) Placed Under Review for Possible
      Downgrade; previously on Oct 4, 2010 Confirmed at Ba2 (sf)

   -- US$11.3M B Notes, Ba3 (sf) Placed Under Review for Possible
      Downgrade; previously on Oct 4, 2010 Confirmed at Ba3 (sf)

   -- US$7.1M C Notes, B1 (sf) Placed Under Review for Possible
      Downgrade; previously on Oct 4, 2010 Confirmed at B1 (sf)

Ratings Rationale

This rating action comes as a result of the notice received by
Moody's stating that the indexation of the mortgages backing this
transaction to USD may be removed and the current outstanding
balances of these mortgages may be redenominated into Tenge. The
notes of the transaction are denominated in USD and, since the
Tenge to USD exchange rate has increased by approximately 12% on
average since the mortgages have been granted, a redenomination
at the exchange rate in effect at the date of disbursement of
each mortgage is expected to lead to an immediate 12% loss for
the transaction. Following the redenomination, the transaction
would also be exposed to further losses in case of further
depreciation of Tenge if the Tenge to USD exchange rate risk
would remain unhedged in the transaction.

Reconsideration of indexation would be made as a result of a
judgment issued by the Supreme Court of Kazakhstan stating that
the indexation of mortgage balances to the USD should not be
allowed in the Kazakh mortgage market. Furthermore, earlier in
2011 Parliament prohibited indexation for new mortgages. This is
causing the servicer of the transaction, BTA Ipoteka, to remove
indexation from its own mortgage book and to request the issuer
to remove the indexation from the securitized mortgage loans.

The review will focus on obtaining further information from the
issuer regarding the redenomination and, if redenomination would
occur, modelling any losses that result in the transaction and
any additional stresses that would arise from the unhedged
foreign exchange risks. It is anticipated that the losses and
ratings impact to the transaction as a result of the
redenomination would be significant. Finally, the review will
also consider whether the issuer will be required to reimburse
any of the borrowers for the previous indexations and will assess
any potential losses associated with this risk.

The methodologies used in this rating were Moody's Approach to
Rating RMBS in Emerging Securitisation Markets - EMEA published
in June 2007, and Moody's approach to rating RMBS in Europe,
Middle East and Africa published in October 2009, and Moody's
MILAN Methodology for rating Russian RMBS published October 2009.

Sensitivities, cash-flow analysis and stress scenarios have not
been updated as the rating action has been primarily driven by
the risks introduced by the removal of indexation to USD .

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes. 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.


KAZAKHTELECOM JSC: Fitch Affirms Issuer Default Rating at 'BB'
--------------------------------------------------------------
Fitch Ratings has affirmed Kazakhtelecom JSC's Long-term foreign
and local currency Issuer Default Ratings (IDR) at 'BB', Short-
term foreign currency IDR at 'B' and National Long-term rating at
'A(kaz)'.  The Outlooks on the Long-term ratings are Stable.

The affirmation reflects the expectation that the company's gross
leverage will most likely substantially increase in the medium-
term as the result of the high level of planned capital
expenditure and the intention to finance up to 50% of investment
projects with new borrowings, while foreign currency and
liquidity risks will remain substantial.

Fitch expects that total debt/EBITDA leverage will most likely
increase from 1.37x at end-H111 to closer to 2.0x during the next
few years driven by high capital expenditures on fibre-to-the-
home (FTTH) and 4G roll-outs turning pre-dividend free cash flow
generation negative.  In 2011-14, Kazakhtelecom plans to create a
FTTH network with a capacity of about 600,000 ports in all of
Kazakhstan's regional centers and urban settlements and provide
4G mobile broadband services in the majority of Kazakhstan's
cities by the end of 2018.

The affirmation also reflects the high foreign currency risks
with the majority of debt denominated/linked to foreign currency
and liquidity risks with cash stored in local banks which have a
substantially lower rating than Kazakhtelecom.

The Stable Outlook is supported by the fact that, at the moment,
Kazakhtelecom has a fairly strong credit profile for its rating
category with proved market positions, solid EBITDA margin
generation of above 35% in 2009-10 and headroom for a leverage
increase.  However, leverage growth above total debt/EBITDA above
2.5x and/or a material increase of refinance risks might be
rating negative.

Fitch rates Kazakhtelecom on a standalone basis and does not
factor in any support due to indirect government ownership.

Also, the agency thinks that a potential sale of the company's
49% stake in Kcell which has historically delivered a solid
dividend to Kazakhtelecom, would be mildly negative if Samruk-
Kazyna, as the company's controlling shareholder required
Kazakhtelecom to upstream all cash received from the sale.

In Fitch's view, it is not yet proven that after building a 4G
network Kazakhtelecom will substantially improve its niche market
position in the mobile segment given the expected low demand for
mobile broadband services in the mid-term in Kazakhstan and the
presence of Kcell, Beeline and Tele2's actively expanding 3G
networks which will most likely be able to fulfill this demand.


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


LIDO: Expects to Resume Normal Operations Soon
----------------------------------------------
According to The Baltic Times, a report by business daily Dienas
Bizness on Dec. 7 disclosed that Lido and its owner, Gunars
Kirsons, said they have succeeded in solving their financial
problems and that the company will soon resume normal operations.

Out-of-court legal protection for Lido will be lifted later this
month, the Baltic Times says.  Mr. Kirsons said that he has
reached agreement with DNB Bank, which agreed to extend the loan
repayment term for Lido, the Baltic Times relates.

Lido is Latvia's flagship public catering company.


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


ZEELAND ALUMINIUM: Declared Bankrupt by Middelburg Court
--------------------------------------------------------
Agnieszka Troszkiewicz at Bloomberg News, citing a statement on
the Web site of the Dutch Judiciary and the Supreme Court of
Netherlands, reports that Zeeland Aluminium Co. was granted
bankruptcy by the court of Middelburg on Tuesday.

Based in Vlissingen, Zalco produces 230,000 metric tons of
aluminum products a year.  The company is owned by Klesch & Co.


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


COMBOIOS DE PORTUGAL: S&P Puts 'B-' Credit Rating on Watch Neg.
---------------------------------------------------------------
As previously announced, on Dec. 8, 2011, Standard & Poor's
Ratings Services placed its 'B-' long-term corporate credit, 'B-'
nonguaranteed issue, and 'BBB-' guaranteed issue ratings on
Portuguese rail-operating company Comboios de Portugal, E.P.E
(CP) on CreditWatch with negative implications.

                            Rationale

"The CreditWatch placement on CP follows that on the Republic of
Portugal (BBB-/Watch Neg/A-3) on Dec. 5, 2011. (See 'Portugal's
'BBB-/A-3' Ratings Placed On CreditWatch Negative,' on
RatingsDirect on the Global Credit Portal.)," S&P said.

"In our view, additional weakening of financial and economic
conditions in Portugal could reduce the government's ability to
provide extraordinary support to CP," S&P said.

"Nonetheless, we continue to factor into our 'B-' long-term
corporate credit rating on CP a four-notch uplift from its stand-
alone credit profile (SACP), which we assess at 'cc', in
accordance with our criteria for rating government-related
entities (GREs). This reflects our opinion that there is a
'very high' likelihood that the Republic of Portugal would
provide timely and sufficient extraordinary support to CP in the
event of financial distress," S&P said. This view is based on
S&P's assessment of CP's:

    "Very important" role for the Portuguese government, given
    that CP is in effect the only passenger rail transport
     provider in Portugal and the predominant freight carrier.

    "Very strong" link with the Republic of Portugal, given CP's
    100% state ownership and its strong legal status as a public
    entity.

"In line with our GRE criteria, a two-notch downgrade of Portugal
could lead us to lower the long-term rating on CP by one notch,
assuming that our assessment of the company's SACP and the
likelihood of extraordinary government support to CP do not
change. However, if we lower our long-term rating on Portugal by
one notch, the long-term rating on CP would not change, all else
remaining equal," S&P said.

                           CreditWatch

"We aim to resolve the CreditWatch placement on CP once we
resolve that on the Republic of Portugal. We expect to conclude
our review of European Economic and Monetary Union (eurozone)
sovereign ratings as soon as possible following the European
Summit on Dec. 8-9, 2011. Our policy is to resolve CreditWatch
placements within 90 days, although we will attempt to resolve
them sooner, if possible," S&P said.

"As part of the CreditWatch resolution, we will consider the
possible consequences of us lowering our sovereign rating on
Portugal for the likelihood of extraordinary support to CP from
the Portuguese government," S&P said.

"As part of the resolution of the CreditWatch placement on the
nonguaranteed issue ratings, we will evaluate whether or not we
think the individual debt instruments would rank pari passu in a
default situation. If we believe that they would not rank pari
passu, any subordinated debt would be at risk of a downgrade by
up to two notches below our corporate credit rating on CP," S&P
said.

Ratings List
CreditWatch Action
                                    To                 From
Comboios de Portugal, E.P.E
Corporate Credit Rating      B-/Watch Neg/--    B+/Watch Dev/--
  Senior Unsecured            B-/Watch Neg       B+/Watch Dev
  Guaranteed Debt             BBB-/Watch Neg     BBB-

Polo III - CP Finance Ltd.
  Senior Secured              B-/Watch Neg       B+/Watch Dev

Polo Securities II Ltd.
  Senior Secured              B-/Watch Neg       B+/Watch Dev


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


FORNETTI ROMANIA: Files for Insolvency in Timis Court
-----------------------------------------------------
According to SeeNews, a court, located in the western county of
Timis, said on its Web site that Fornetti Romania filed for
insolvency on Monday.

Fornetti Romania, part of Hungary's Fornetti, reported a loss of
RON2.8 million (US$839,000/EUR644,000) a turnover of RON90.9
million last year, See News recounts.  See News notes that
finance ministry data show the company had debts worth nearly
RON49 million at end-December.

Fornetti Romania is a frozen bakery goods producer.  The company
is part of Hungary's Fornetti.


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


* IRKUTSK OBLAST: S&P Affirms 'BB' Issuer Credit Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on the
issuer credit ratings on Irkutsk Oblast to positive from stable.
"At the same time, we affirmed the 'BB' long-term credit rating
and the 'ruAA' national scale rating on the oblast. The recovery
rating on the oblast's unsecured debt remains unchanged at '3',"
S&P said.

"The ratings are based on the oblast's limited financial
flexibility and predictability, relatively high contingent
liabilities, and high infrastructure needs. The oblast's
creditworthiness is supported by its significantly reduced debt
burden and improved liquidity position. In line with our base-
case scenario, the oblast's strong debt and liquidity indicators
will be sustained over the next two-to-three years by rising tax
revenues from the diverse, but volatile, economy with good long-
term growth potential," S&P said.

"Since mid-2008, the oblast's prudent cost-containment measures
-- combined with additional federal-government subsidies,
redistribution of municipal revenues in favor of the oblast
budget, and unplanned tax proceeds -- have helped the oblast
improve its financial indicators during and after the economic
downturn. In line with our base-case scenario, in 2011 the
oblast's operating surplus may reach 10% of operating revenues.
In addition, balance after capital accounts will remain positive
for the third year in a row, helped by fast-rising revenues.
These have been largely fueled by tax proceeds from recently
developed oil exploration and transportation, and tight spending
discipline. As a result, the oblast will likely reduce its tax-
supported debt to 5.2% of consolidated operating revenues by the
end of 2012. After that, we expect it to rise to up to 16% by
year-end 2014," S&P said.

"Nevertheless, we expect there to be political pressure on the
oblast's government before and after the Russian presidential and
parliamentary elections. We anticipate that this pressure,
coupled with high infrastructure needs for the vast region, which
experiences severe climate conditions, will result in rising
salaries, subsidies, procurement, and capital spending,
leading to a weakening budgetary performance in 2012-2014," S&P
said.

"Moreover, there is uncertainty over the consistency of the
oblast's financial policy in the context of Russia's developing
and unbalanced institutional framework, nascent long-term
planning, and exposure to world commodity prices. In our view,
this will add volatility to the oblast's budgetary performance.
In our base-case scenario, in 2012-2014, the oblast's operating
surplus will oscillate between 1% and 5% of operating revenues,
while the deficit after capital accounts will decrease to 7.5% of
revenues in 2014," S&P said.

"Like other Russian regions, the oblast's revenue-raising
capacity is limited by the federal government's control over the
tax base and the main tax rates. Federal subsidies and
unmodifiable taxes together accounted for 89% of the oblast's
operating revenue in 2010. The oblast also has very limited
flexibility on the spending side because of large infrastructure
needs and austerity measures applied in 2008-2009. Moreover, the
corporate profit tax -- accounting for about one-third of the
oblast's operating revenues -- remains difficult to forecast,
being exposed to the volatility of world commodity prices," S&P
said.

The oblast's credit profile continues to suffer from the
moderately weak financial position of its municipalities. As of
Jan. 1, 2011, municipal payables, together with municipal debts,
accounted for about 10% of the oblast's estimated 2011 total
revenues.

"On the positive side, Irkutsk benefits from an abundance of
natural resources and its proximity to East Asia and the Pacific
Rim. In our view, if accompanied with massive infrastructure
improvements, these factors could support the oblast's long-term
economic development," S&P said.

"We believe that the oblast's liquidity position has improved and
we now view it as 'positive.' We still view the oblast's access
to external liquidity as limited, due to weaknesses in the
Russian capital market and its banking sector. That said, in line
with our base-case scenario, throughout 2012 its average cash on
accounts will significantly exceed debt service due within the
next 12 months," S&P said.

"In line with our base-case scenario, the oblast's free cash will
gradually reduce from about Russian ruble (RUB) 22.5 billion
recorded at the end of September 2011. However, it will remain
above RUB5 billion throughout 2012, exceeding its debt service
falling due within next 12 months by more than 1.6x," S&P said.

The oblast plans to gradually build up its reserve fund to RUB4
billion. This policy fully implemented and combined with relying
on medium-term borrowings, may shield the oblast from refinancing
risks and underpin its creditworthiness.

"Thanks to higher-than-expected revenues in 2011, the oblast has
significantly reduced its leverage and thus its refinancing
needs. Our base-case scenario indicates that the oblast's debt
service, as a percentage of operating revenues, will gradually
reduce to 1% in 2013-2014, down from a historical high of 14%-17%
in 2006-2009," S&P said.

"For now, the oblast has good access to domestic loans. However,
the Russian capital market is volatile, and we view access to
external liquidity as 'limited.' The weaknesses of the domestic
banking sector are reflected in our BICRA score of '7', with '1'
being the lowest risk and '10' being the highest. (For more
details see 'BICRA On Russia Revised To Group '7' From Group
'8'', published on Nov. 9, 2011, on RatingsDirect on the Global
Credit Portal). Irkutsk is not allowed to borrow
internationally," S&P said.

"The '3' recovery rating on the oblast's unsecured debt indicates
our expectation of a 50%-70% recovery in the event of a payment
default. For more information on our rationale for the recovery
rating, please see 'Recovery Ratings Assigned To Debt Of 22 LRGs;
Issue Ratings On Those 22 LRGs Affirmed,' published on May 24,
2010. The positive outlook reflects our view that continuing the
current prudent financial practices may help the oblast stabilize
its budgetary performance at moderate levels over the medium
term. This is despite rising spending pressure and the potential
volatility of its revenues," S&P said.

"We could raise the ratings over the next year if the oblast
streamlines its currently cautious financial practices in its
medium-term financial policy. It could do so by moderating
budgetary performance and relying on medium-term debts and the
availability of sound cash reserves, while addressing
infrastructure needs and alleviating pressure on the oblast's
budget. If the oblast strengthened the financial position of the
region's municipalities, we could also consider a positive rating
action," S&P said.

"If the oblast's financial policy stance were to substantially
weaken due to rising political and social pressures, leading to a
marginal operating surplus in 2012-2013, we could revise the
outlook to stable," S&P said.


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


BANCO CAM: Moody's Reviews Ratings on Covered Bonds for Upgrade
---------------------------------------------------------------
Moody's Investors Service has placed on review for upgrade Banco
CAM's Baa1 mortgage covered bonds and Baa2 public-sector covered
bonds. Previously, both covered bonds were on review with
direction uncertain. The ratings remain unchanged.

Ratings Rationale

The rating announcement was prompted by Moody's decision to place
Banco CAM's Ba1 senior unsecured rating on review for upgrade,
following its acquisition by Banco Sabadell announced on
December 7, 2011.

Banco Sabadell's mortgage covered bonds are on review for
downgrade. This follows the review for downgrade of Banco
Sabadell's issuer ratings due to, amongst others, Moody's
reassessment of the financial strength of all Spanish banks and
the effect of the integration with Banco CAM on the bank's credit
profile.

The review for upgrade of Banco CAM's issuer ratings affects the
covered bonds through its impact on both the expected loss
analysis and timely payment analysis.

Expected Loss Method

Under Moody's rating methodology, an issuer's credit strength is
incorporated into Moody's expected loss analysis. Therefore, any
change in the issuer's ratings changes the expected loss on the
covered bonds.

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 TPI assigned to
Banco CAM's mortgage covered bonds is Probable, whilst the TPI
assigned to its public-sector covered bonds is Improbable.

The current ratings assigned to the existing covered bonds of the
above programs can be expected to be assigned to all subsequent
covered bonds issued under the relevant program. Any future
rating actions are expected to affect all covered bonds issued
under the relevant program. If there are any exceptions to this,
Moody's will in each case publish details in a separate press
release.

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.

KEY RATING ASSUMPTIONS/FACTORS

Covered bond ratings are determined after applying a two-step
process: expected loss analysis and 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. This is measured by the
issuer's rating and the stressed losses on the cover pool assets
following issuer default.

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

The cover pool losses for Banco CAM's mortgage covered bond
program are 41.5%, with market risk of 19.1% and collateral risk
of 22.3%. The collateral score for this program is currently
33.3%.

The cover pool losses for Banco CAM's public-sector covered bond
program are 25.8%, with market risk of 14.9% and collateral risk
of 10.9%. The collateral score for this program is currently
21.9%.

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

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 measures the number of notches by which the
issuer's rating may be downgraded before the covered bonds are
downgraded under the TPI framework. The TPI Leeway for both
programs is limited, and thus any downgrade of the issuer ratings
may lead to a downgrade of the covered bonds.

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

As noted in Moody's comment 'Rising Severity of Euro Area
Sovereign Crisis Threatens Credit Standing of All EU Sovereigns'
(November 28, 2011), the risk of sovereign defaults or the exit
of countries from the Euro area is rising. As a result, Moody's
could lower the maximum achievable rating for covered bonds
transactions in some countries, which could result in rating
downgrades.

Rating Methodology

The principal methodology used in this rating was "Moody's
Approach to Rating Covered Bonds" published in March 2010.


BBVA EMPRESAS 6: Moody's Assigns '(P)B3' Rating to Serie C Notes
----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
three series of Notes issued by BBVA EMPRESAS 6, FTA:

   -- EUR 804M Serie A Notes, Assigned (P)Aaa (sf)

   -- EUR 240M Serie B Notes, Assigned (P)Ba3(sf)

   -- EUR 156M Serie C Notes, Assigned (P)B3(sf)

BBVA EMPRESAS 6 is a securitization of loans granted by BBVA (Aa3
/P-1, Negative Outlook) to corporate obligors and small- and
medium-sized enterprises (SME). The portfolio consists of secured
and unsecured loans, mainly used to fund general working capital
and long-term business expansion. BBVA is acting as Servicer of
the loans while Europea de Titulizacion S.G.F.T., S.A. is the
Management Company ("Gestora").

Ratings Rationale

Moody's analysis focused primarily on (i) an evaluation of the
underlying portfolio of loans; (ii) historical performance
information and other statistical information; (iii) the credit
enhancement provided by the swap spread, the cash reserve and the
subordination of the notes.

The provisional pool of underlying assets was, as of November
2011, composed of a portfolio of 4,381 contracts granted to
obligors located in Spain. The loans were originated between 2000
and June 2011, and have a weighted average seasoning of 1.9 years
and a weighted average remaining term of 7.3 years. Around 60% of
the outstanding the portfolio is secured by first-lien mortgage
guarantees over different types of properties. Geographically,
the pool is concentrated mostly in Catalonia (24%), Madrid
(19.1%) and Andalusia (13.7%).

According to Moody's, this deal benefits from several credit
strengths, such as a portfolio with a relatively short weighted
average life of 4.3 years (assuming a prepayment rate of 0%) and
a simple, fully sequential, pass-through structure. Moody's notes
that the transaction features a number of credit weaknesses: (i)
a high concentration in the Construction and Building sector,
which according to Moody's classification represents 39.8% of the
pool volume, including a 14.5% linked to real estate developers;
(ii) bullet loans amount to 13.9% of the pool volume, while 17.1%
benefits from a grace period with regards to principal payments
and 28.2% consists of loans with predefined amortization
schedules including in some cases balloon payments; and (iii) a
relatively low portfolio granularity (Effective Number of
Obligors below 300) and a degree of obligor concentration as the
top ten names represent around 12.9% of the pool volume. These
characteristics were reflected in Moody's analysis and
provisional ratings, where several simulations tested the
available excess spread (including 50bp guaranteed by a hedging
mechanism) and 12% reserve fund to cover potential shortfalls in
interest or principal envisioned in the transaction structure.

The resulting key assumptions of Moody's analysis for this
transaction are a mean default rate of 20.2% with a coefficient
of variation of 40.1% and a stochastic mean recovery rate of
51.5%.

Moody's also ran sensitivities around key parameters for the
rated notes. For instance, if the assumed default probability of
20.2% used in determining the initial rating was changed to 29.4%
and the recovery rate of 51.5% was changed to 41.5%, the model-
indicated rating for the Serie A, Serie B and Serie C notes would
change from Aaa(sf), Ba3(sf) and B3(sf), respectively, to
Aa3(sf), to B3(sf) and Ca(sf), respectively.

The V Score for this transaction is Medium/High, which is in line
with the score assigned for the Spanish SME sector and
representative of the volatility and uncertainty in the Spanish
SME sector. V-Scores are a relative assessment of the quality of
available credit information and of the degree of dependence on
various assumptions used in determining the rating. For more
information, the V-Score has been assigned accordingly to the
report " V Scores and Parameter Sensitivities in the EMEA Small-
to-Medium Enterprise ABS Sector " published in June 2009.

The methodologies used in this rating were "Moody's Approach to
Rating CDOs of SMEs in Europe", published in February 2007,
"Refining the ABS SME Approach: Moody's Probability of Defaults
Assumptions in the Rating Analysis of Granular SME Portfolios in
EMEA", published in March 2009 and "Moody's Approach to Rating
Granular SME Transactions in Europe, Middle East and Africa",
published in June 2007.

In rating this transaction, Moody's used a combination of its
CDOROM model (to generate the default distribution) and ABSROM
cashflow model to determine the potential loss incurred by the
notes under each loss scenario.

The cash flow model evaluates all default scenarios that are then
weighted considering the probabilities of the lognormal
distribution assumed for the portfolio default rate. In each
default scenario, the corresponding loss for each class of notes
is calculated given the incoming cash flows from the assets and
the outgoing payments to third parties and noteholders.
Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario; and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's analysis
encompasses the assessment of stressed scenarios.

As noted in Moody's comment "Rising Severity of Euro Area
Sovereign Crisis Threatens Credit Standing of All EU Sovereigns",
published on 28 November 2011, the risk of sovereign defaults or
the exit of countries from the Euro area is rising. As a result,
Moody's could lower the maximum achievable rating for structured
finance transactions in some countries, which could result in
rating downgrades.


CAJA DE AHORROS: Losses May Total EUR17 Billion, El Mundo Says
--------------------------------------------------------------
According to Bloomberg News' Angeline Benoit, El Mundo, citing
Banco Sabadell SA Chief Executive Officer Jaime Guardiola,
reported that Caja de Ahorros del Mediterraneo's losses may total
EUR17 billion (US$22 billion) instead of the EUR5.5 billion
estimated by the Bank of Spain.

As reported by the Troubled Company Reporter-Europe on Dec. 9,
2011, Bloomberg News related that Banco Sabadell SA agreed to
acquire CAM for one euro in a deal financed and guaranteed by
Spain's commercial lenders as an effort to shield the national
budget from losses.  Spain's deposit-guarantee fund, which is
financed by the country's banks, will first inject EUR5.25
billion (US$7 billion) into CAM, Bloomberg disclosed.  The state
bailout fund said the impact on Spain's budget will be "nil," as
the deposit fund will also guarantee losses arising over the next
decade, Bloomberg noted.  The deal will create a lender with
EUR166 billion in assets, Spain's fifth largest, combining
Sabadell with a savings bank that was seized by the Bank of Spain
in July after souring property loans wrecked its business,
Bloomberg said.  The central bank threw out CAM's managers in
July and placed the bank under administration of the government's
bank bailout fund, which injected EUR2.8 billion into its
business and provided a further EUR3 billion-euro credit line to
keep it operating, Bloomberg recounted.  CAM faces debt
maturities of EUR6.37 billion next year, EUR3.24 billion in 2013,
and EUR4.36 billion in 2014, according to data compiled by
Bloomberg.

Caja de Ahorros del Mediterraneo (CAM) is a savings bank that
attracts deposits and provides commercial banking services in
Spain.


SANTANDER HIPOTECARIO: Moody's Assigns 'C' Rating Serie C Note
--------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to the debt to be issued by Fondo de Titulizacion de
Activos SANTANDER HIPOTECARIO 8:

   -- EUR640.0M Serie A Note, Assigned (P)Aaa (sf)

   -- EUR160,0M Serie B Note, Assigned (P)Ba1 (sf)

   -- EUR160,0M Serie C Note, Assigned (P)C (sf)

Ratings Rationale

FTA SANTANDER HIPOTECARIO 8 is a securitization of loans granted
by Banco Santander (Aa3 Negative Outlook/P-1) to Spanish
individuals. Banco Santander is acting as Servicer of the loans
while Santander de Titulizacion S.G.F.T., S.A. is the Management
Company ("Gestora").

The ratings address the expected loss posed to investors by the
legal final maturity of the notes. In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal at par on or before the rated final legal
maturity date for the class A and B notes. Moody's ratings only
address the credit risk associated with the transaction. Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions. Upon a conclusive review of
the transaction and associated documentation, the rating agency
will endeavor to assign a definitive rating. A definitive rating
(if any) may differ from a provisional rating.

As of November 2011, the provisional pool was composed of a
portfolio of 5,138 contracts granted to 5,138 obligors located in
Spain. The assets supporting the notes are prime High LTV (HLTV)
mortgage loans secured on residential properties located in
Spain. 82% of the loans correspond to loans from Santander
Hipotecario 4. The Current Weighted Average LTV is 82.55%. The
assets were originated between 1996 and 2011, with a weighted
average seasoning of 4.5 years and a weighted average remaining
term of 28.4 years. Geographically, the pool is located mostly in
Andalusia (19.97%) and Madrid (17.54%). 9.86% of the pool
correspond to loans in principal grace periods. 8.08% of the
loans were granted to non Spanish nationals.

According to Moody's, the deal has the following credit
strengths: (i) a reserve fund fully funded upfront equal to 20%
of the A and B notes to cover potential shortfall in interest and
principal, and (ii) the swap to hedge the interest rate risk
which also provides a guaranteed excess spread of 0.65% to the
transaction

Moody's notes that the transaction features a number of credit
weaknesses, including: (i) the proportion of HLTV loans in the
pool; (ii) almost 21% of the portfolio correspond to self
employed debtors (iii) and the performance of the Banco
Santander's precedent transactions and the performance of the
Banco Santander's book

Moody's analysis focused primarily on (i) an evaluation of the
underlying portfolio of loans; (ii) historical performance
information and other statistical information; (iii) the credit
enhancement provided via excess-spread, the cash reserve and the
subordination of the notes. As noted in Moody's comment 'Rising
Severity of Euro Area Sovereign Crisis Threatens Credit Standing
of All EU Sovereigns' (28 November 2011), the risk of sovereign
defaults or the exit of countries from the Euro area is rising.
As a result, Moody's could lower the maximum achievable rating
for structured finance transactions in some countries, which
could result in rating downgrades.

The resulting key assumptions of Moody's analysis for this
transaction are a MILAN Aaa Credit Enhancement of 30.0% and a
expected loss of 10%.

The V Score for this transaction is Medium, which is in line with
the V score assigned for the Spanish RMBS sector. Five sub
components underlying the V Score have been assessed higher than
the average for the Spanish RMBS sector.

Issuer/Sponsor/Originator's Historical Performance Variability is
Medium/High because HLTV pools have historically higher defaults
and arrears than traditional mortgages pools. Sector's Historical
Downgrade Rate is assessed as Medium due to the exposure of the
transaction to HLTV's which have suffered more downgrades than
traditional mortgages pools, Disclosure of Securitisation
Collateral Pool Characteristics is assessed as Medium since no
months current data was available on a loan by loan basis,
Disclosure of Securitisation Performance is assessed as Medium
since no detailed information on recoveries has been provided for
previous Santander Hipotecario transactions in the investor
report and Transaction Complexity is assessed as Medium since
HLTV loans are more exposed to house price declines.

Moody's also ran sensitivities around key parameters for the
rated notes. For instance, if the assumed MILAN Aaa Credit
Enhancement of 30% used in determining the initial rating was
changed to 36% and the expected loss of 10% was changed to 13%,
the model-indicated rating for Series A and Series B of
(P)Aaa(sf) and (P)Ba1(sf) would have changed to (P)Aa1(sf) and
(P)B1(sf) respectively.

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 Updated Methodology for Rating Spanish RMBS
published in October 2009, and Cash Flow Analysis in EMEA RMBS:
Testing Structural Features with the MARCO Model (Moody's
Analyser of Residential Cash Flows) published in January 2006.

Other Factors used in this rating are described in 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
===========


SAAB AUTOMOBILE: Court-Appointed Administrator to Quit
------------------------------------------------------
Reuters reports that the Vanersborg District Court said on
Wednesday Saab Automobile and its court-appointed administrator
Guy Lofalk want him replaced amid reports of disagreement as the
company struggles to stay in business.

The court is due to decide whether to keep Saab in a scheme which
grants it protection from creditors while it secures itself a
stable future, Reuters notes.

Mr. Lofalk, who applied to have the creditor protection scheme
ended, now wants to leave his position, Reuters discloses.

"The Saab companies and Guy Lofalk have [Wednes]day jointly
requested that Guy Lofalk will be dismissed as administrator and
that lawyer Lars-Henrik Andersson is appointed as a new
administrator", Reuters quotes the court as saying on its Web
site.

The court is due to decide on the matters on Monday Dec. 19,
Reuters notes.

Saab spokesman Eric Geers said it was Mr. Lofalk's decision to
quit, but recent reports in Swedish media suggested Victor
Muller, chief executive of Swedish Automobile, the Dutch firm
which owns Saab, wanted Lofalk to go, according to Reuters.

Mr. Andersson, as cited by Reuters, said he would not comment
until Monday, but said he could accept the role of administrator

As reported by the Troubled Company Reporter-Europe on Dec. 15,
2011, Bloomberg News, citing Dagens Industri, disclosed that
Zhejiang Youngman Lotus Automobile plans to invest between SEK10
billion (US$1.43 billion) and SEK12 billion in Saab Automobile.
Meanwhile, Reuters' Mia Shanley at Reuters reported that Saab has
received a first payment from Youngman as it struggles to stay in
business.  Youngman "paid EUR3.4 million [Tues]day," Victor
Muller, chief executive of Swedish Automobile, the Dutch firm
which owns Saab, told Reuters in a telephone text message.  "We
are working on the documentation for further funding adequate to
pay salaries and continue reorganization," Reuters quotes Mr.
Muller as saying Saab spokesman Eric Geers could not say whether
more money was on the way but said discussions with Youngman had
continued and that progress was being made, Reuters noted.
Bloomberg noted Mr. Geers said on Tuesday that Saab's earlier
Dec. 15 deadline for filing its arguments with the court has been
lifted.

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


NOBINA AB: S&P Lowers Long-Term Corporate Credit Rating to 'B-'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit ratings on Sweden-based bus services provider
Nobina AB and subordinate holding company Nobina Europe Holding
AB to 'B-' from 'B'. The outlook is negative.

"The downgrade reflects a deterioration in Nobina's liquidity
position, which we now assess as 'weak' compared with 'less than
adequate' previously. The worsening liquidity position stems from
Nobina's delay in arranging refinancing for the EUR85 million
senior notes due in August 2012. Despite the significant overlap
between Nobina's shareholder and bondholder interests, we believe
the lack of a defined refinancing plan at this stage increases
refinancing risk, particularly in light of the current market
environment. Furthermore, we may take a further rating action if
a solution is not found during the group's first quarter next
year," S&P said.

"The ratings on Nobina reflect our view of the group's 'weak'
business risk profile and "highly leveraged" financial risk
profile," S&P said.

"In our view, Nobina's weakening liquidity profile stems from
challenges in arranging refinancing for the notes due August
2012," S&P said.

"We could place the ratings on Nobina on CreditWatch with
negative implications or lower the ratings if we observe a
further weakening of the group's liquidity profile. This could
arise, for example, if a solution is not found during the group's
first quarter next year. Further deterioration of the group's
trading performance, or a softening of credit ratios to below the
levels we consider commensurate for the current rating, could
also result in a downgrade," S&P said.

"Conversely, we could revise the outlook to positive or upgrade
Nobina if it successfully refinances its maturing notes and
improves its profitability, cash generation, and consequently its
credit ratios. We would typically consider a sustained ratio of
FFO to adjusted debt of more than 10% and EBITDA to interest
coverage of more than 2x to be commensurate with a 'B' rating,
and FFO to adjusted debt in excess of 15% to be commensurate with
a 'B+' rating," S&P said.


=====================
S W I T Z E R L A N D
=====================


BARRY CALLEBAUT: S&P Raises Corporate Credit Rating From 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit and issue ratings on Switzerland-based chocolate
manufacturer Barry Callebaut AG to 'BBB-' from 'BB+'. The outlook
is stable.

"At the same time, we withdrew our '4' recovery rating on Barry
Callebaut's unsecured bonds and revolving credit facility (RCF),
since we do not assign our recovery ratings to investment-grade
debt," S&P said.

"The upgrade reflects our view that the improvement in Barry
Callebaut's financial metrics is sustainable. We base this view
on the group's track record of adhering to a moderate financial
policy and steady cash flow from operations despite the uncertain
macroeconomic environment," S&P said.

Adjusted funds from operations (FFO) to debt improved to 27.5% in
Aug. 31, 2011, from 26.5% in same period last year. Standard &
Poor's-adjusted debt to EBITDA improved to 2.7x from 2.9x in the
same periods.

In the 12 months to Aug. 31, 2011, Barry Callebaut generated
revenues of about Swiss franc (CHF) 4.5 billion and reported
EBITDA of CHF432.1 million, reflecting its leading position in
the global chocolate production market. In the year ending Aug.
31, 2011, Barry Callebaut increased its revenues by 0.7% year on
year, with volume growth of 7.2%. Its operating profit rose by
5.7% on a reported basis, to CHF360.6 million, from CHF341.1
million a year earlier. Despite weakening economic conditions
across Europe and in North America, Barry Callebaut managed to
largely protect its revenue base in 2011. Similarly, for the year
ending Aug. 31, 2011, the group reported a stable EBITDA margin
of almost 9.5% on the back of a continued focus on costs,
compared with 9.2% for the 12 months to Aug. 31, 2010.

The ratings reflect our assessment of Barry Callebaut's business
risk profile as "satisfactory" and its financial risk profile as
"intermediate," reflecting the improvement in the group's
financial metrics in the past two years.

"In our view, Barry Callebaut is well positioned to continue to
generate positive free operating cash flow, as well as to
maintain a moderate financial policy. Financial measures that we
deem adequate for the current rating include adjusted debt to
EBITDA of 2.5x-3.0x and FFO to debt of about 30%, which we
consider commensurate with an 'intermediate' financial risk
profile," S&P said.

"Rating downside could arise if Barry Callebaut were to deviate
from the trend of steady organic growth, which supports our view
of the quality of its earnings. This could occur if there were a
disruption to supply in a cocoa-producing region. Furthermore, a
sizable, largely debt-financed acquisition resulting in leverage
of more than 3x would not be compatible with our assessment of an
'intermediate' financial risk profile," S&P said.

"We consider rating upside to be constrained by Barry Callebaut's
capital-intensive business model, volatile working capital
movements, and its existing financial policy," S&P related.


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


KUVEYT TURK: Fitch Affirms Individual Rating at 'D'
---------------------------------------------------
Fitch Ratings has revised Kuveyt Turk Katilim Bankasi A.S's
Outlook to Stable from Positive and affirmed the Long-term
foreign currency Issuer Default Rating at 'BBB-'.  The Outlook
revision follows similar action on the Republic of Turkey on
November 24, 2011.

Kuveyt Turks IDRs, Support and National Long-term ratings reflect
the potential support from its majority shareholder, Kuwait
Finance House (KFH, rated 'A+'/Stable).  The foreign currency
Long-term IDR is constrained by Turkey's Country Ceiling of 'BBB-
' and its local currency Long-term IDR is capped two notches
above that of the sovereign.  In assessing the potential for
support from KFH, Fitch takes into account its majority ownership
of Kuveyt Turk and the high importance of the bank to the group's
consolidated balance sheet and performance (Kuveyt Turk accounted
for 18% of assets at end-H111).  At the same time, Fitch also
notes some uncertainty as to whether any support made available
to KFH by the Kuwaiti authorities would be able to flow through
to Kuveyt Turk in a timely manner due to potential regulatory
barriers in Kuwait.

Kuveyt Turk's Viability Rating reflects its sound profitability,
good efficiency, comfortable liquidity and stable deposit funding
profile.  Rapid growth, concentration into construction and
relatively small size are credit negatives.

Kuveyt Turk's sound profitability is a key strength in a
competitive environment.  Operating ROE has been consistently
been around 20% and the highest in its peer group.  Despite rapid
organic growth and relatively small size, cost/income ratio and
cost to average assets ratios are reasonable and on a par with
international standards.  The NPL ratio was reasonable at 2.3% in
9M11 (2010: 3.2%), helped by rising credit volumes, continued
recoveries and write-offs.  The coverage of NPL's has also
improved to 71% in 9M11.  At the same time, Fitch notes that the
rapidly growing loan book still needs to be tested through the
credit cycle.

Kuveyt Turk is mainly funded by diversified customer deposits.
Liquid assets are high and comfortably covered 36% of customer
deposits in 9M11.  Fitch's core capital ratio was reasonable at
13.8%, and should be viewed in conjunction with the support of a
highly rated parent.  Regulatory capital ratio improved to 16.5%
in 9M11, helped by the Tier 2 capital injection in Q311.

The rating actions are as follows:

Kuveyt Turk

  -- LT FC IDR: affirmed at 'BBB-'; Outlook revised to Stable
     from Positive

  -- LT LC IDR: affirmed at 'BBB'; Outlook revised to Stable from
     Positive

  -- ST FC IDR: affirmed at 'F3'

  -- ST LC IDR: affirmed at 'F3'

  -- National Long-term rating: affirmed at 'AAA(tur)'; Stable
     Outlook

  -- Viability Rating: affirmed at 'bb-'

  -- Individual Rating: affirmed at 'D'

  -- Support Rating: affirmed at '2'

  -- Senior unsecured notes (Sukuk issue): affirmed at 'BBB-'


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


* CITY OF KHARKOV: Fitch Assigns 'B(exp)' Rating ton Bonds
----------------------------------------------------------
Fitch Ratings has assigned the City of Kharkov's upcoming UAH99.5
domestic bonds issue, due on December 8, 2014, an expected Long-
term local currency rating of 'B(exp)' and an expected National
Long-term rating of 'AA-(ukr)(exp)'.

The City's Long-term foreign and local currency ratings are both
'B' with a Stable Outlook.  The city has a Short-term foreign
currency rating of 'B', and a National Long-term rating of 'AA-
(ukr)' with a Stable Outlook.

The bond issue will have 12 quarter-annual interest payment
periods with a flat 15% interest rate.  The proceeds from the
issue will be used to fund capital expenditure related to the
EURO 2012 championship hosted in the city.

The final rating is contingent upon the receipt of final
documents conforming to information already received.


* REGION OF DNEPROPETROVSK: Fitch Assigns 'B' Currency Ratings
--------------------------------------------------------------
Fitch Ratings has assigned the Ukrainian Region of
Dnepropetrovsk's Long-term foreign and local currency ratings of
'B', Short-term foreign currency rating of 'B' and National Long-
term rating of 'AA(ukr)'.  The Outlooks for the Long-term ratings
are Stable.

The ratings reflect Dnepropetrovsk's strong economy, satisfactory
budgetary performance and its risk-free status.  The ratings also
factor in the regional budget's strong reliance on central
government decisions and the overall evolving institutional
environment in Ukraine.  Dnepropetrovsk's ratings are constrained
by Ukraine's sovereign ratings ('B'/Stable), reflecting the
strong integration of the region's budget with the national
budgetary system of the Ukraine.

Fitch notes that an upgrade of the sovereign ratings coupled with
the maintenance of a satisfactory budgetary performance would be
positive for the region's ratings.  Conversely, downward rating
pressure would arise if unfavorable changes in the institutional
framework for Ukrainian subnationals negatively affected the
region's budgetary performance and led to a significant
deterioration of the region's debt position.

The region has a strong economy, producing 10.2% of national
gross regional product (GRP) with 7.3% of the national
population.  GRP per capita was 40% above the national average in
2009.  The region's industrial sector is export-oriented and
dominated by metallurgy and mining, which means the economy is
exposed to commodity price and demand fluctuations in the
domestic and international market.

Fitch expects the region's operating margin to slightly
deteriorate but remain satisfactory at about 8% in 2011-2013.
The region recorded stable budgetary performance with operating
margin averaging 11% in 2006-2010.  Sound performance is
supported by a stable tax base, as personal income tax is a major
tax and has little sensitivity to economic cycles.  The budget is
usually balanced as the region can use only any cash balance from
previous years to cover possible deficits.

The region is free of direct debt and contingent liabilities.
Ukrainian law prevents regional governments from borrowing or
issuing guarantees, limiting their financing ability.  The
current institutional framework for the Ukrainian regions leads
to a high dependence of their financial policy on central
government decisions and hinders long-term budget planning.  The
region has a one-year budget planning horizon, which coupled with
borrowing restriction puts limitations on the region's capital
expenditure.  Fitch does not expect legislative changes allowing
the regions to borrow in the medium term.

The region controls an extensive network of public sector
entities (PSEs). This involves additional pressure on the budget
expenditure via administrative expenses and subsidies.  The
administration is constantly restructuring the sector aiming to
increase it's efficiency.  Due to the negligible size of the
PSEs' financial liabilities, Fitch does not consider the risk
from them to be significant.


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


ASTON MARTIN: S&P Lowers Long-Term Corp. Credit Rating to 'B+'
--------------------------------------------------------------
Standard and Poor's Ratings Services lowered its long-term
corporate credit rating on U.K.-based automotive manufacturer
Aston Martin Holdings (UK) Ltd. (AM) to 'B+' from 'BB-'. "At the
same time, we lowered the senior secured debt rating the GBP304
notes issued by Aston Martin Capital Ltd. to 'B+' from 'BB-' and
the recovery rating on these notes to '4' from '3'. The outlook
is negative," S&P said.

"The downgrade follows a negative revision of our financial
forecasts for Aston Martin (AM) in light of weak economic
conditions and prospects, as well as the recently weak
performance of the company," S&P said.

"According to our revised base-case projections, AM's financial
debt protection measures in 2011 are likely to deteriorate
significantly more than we previously expected. We also expect
improvements in 2012 to be weaker than we earlier assumed," S&P
said.

In the first nine months of 2011, AM reported weak operating
earnings on the back of weaker unit sales developments in the
company's key markets. Against the comparable period, core
volumes (excluding the city car Cygnet) were down by 3% in the
nine months to Sept. 30, 2011, and by 20% in the third-quarter
2011 on the comparable period. Declines in two of AM's core
markets, the U.K. and the U.S., were not counterbalanced by
increasing unit volumes in China, where the company has opened
dealerships in 2011.

"AM's EBITDA margin in the nine months to Sept. 30, 2011, was
14%, versus 15% in the period a year earlier, which is below our
earlier expectation that AM could achieve EBITDA margins of 20%
in 2011. Reported funds from operations (FFO) were likewise below
our earlier expectations. Nevertheless, we view as positive that
AM released about GBP21 million of working capital in the nine
months to Sept. 30, 2011," S&P said.

"The negative outlook reflects our opinion that there is a risk
that AM will not achieve the mid-single-digit increase in sales
volumes in 2012 that we currently envisage in our base-case
scenario. Consequently, we believe that our projected earnings
and cash flows for AM in 2012 could likewise prove to be lower,"
S&P said.

"Based on our assumptions of a mid single-digit volume increase
year on year in 2012, we estimate that AM will achieve an EBITDA
margin of 17%-18%, which would translate into fully adjusted FFO
to debt of about 12%-15% and debt to EBITDA of 5x-6x. Any
indication that AM's FFO to debt could fall below 12% or show
EBITDA leverage of more than 6x could lead us to revise our
financial risk profile assessment to 'highly leveraged.' This
would lead to negative pressure on the rating," S&P said.


CRUSADER HOLIDAYS: Motts Leisure Buys Firm Out of Administration
----------------------------------------------------------------
BBC News reports that Crusader Holidays has been acquired by
Motts Leisure Ltd. out of administration.

Crusader Holidays Director Roger Mott said it was "working flat
out" to ensure existing bookings would go ahead or be refunded,
according to BBC News.  The report relates that Mr. Mott said the
booking offices in Clacton would be retained and it hoped to
retain "the majority" of its staff who were left after
administration.

Motts Leisure Ltd completed the deal to take on its business on
Dec. 12.

As reported in the Troubled Company Reporter-Europe on Dec. 7,
2011, Clacton Gazette reports that Crusader Holidays has gone
into administration cancelling all booking for the holidays.  "
. . . .  The administrators Ernest & Young, will over the next
few days, contact customers directly to ensure that those
customers who have not as yet taken their holiday will get claim
forms to claim their refund. . . .  Crusader Holidays are a
member of the Bonded Coach Holidays Scheme which protects
customers' money.  Under the scheme, customers who have already
paid for their package are protected and will get a refund in
full," the Confederation of Passenger Transport UK said in a
statement obtained by the news agency.

Crusader was founded in the 1960s as a day-trip coach company and
started running holidays in 1974.  It was founded by Roger
Staines and at one point owned 24 coaches.


FOCUS DIY: Customers & Creditors Won't Get Money Back
-----------------------------------------------------
Julia Kollewe at the guardian reports that suppliers, landlords,
customers and employees of Focus DIY, who are owed more than
GBP820 million, won't get their money back

The closing-down sale of DIY chain brought in GBP100.6 million
for its lenders, a progress report from Ernst & Young's
Manchester office showed, according to the guardian.  The report
relates that the administrators made a profit of GBP45.8 million
through assigning property leases to other retailers -- B&Q owner
Kingfisher, Wickes, Asda, B&M and fellow discount chain TJ
Morris.

Focus's secured creditors -- GMAC and Bank of Scotland -- have
been repaid the GBP32.2 million they were owed in full, the
report notes.

The guardian notes that FLP3, an investment vehicle used by
Focus's former private equity owner Cerberus Capital, has only
received GBP25 million of the GBP214.7 million it was owed as a
second-ranking secured lender.

The administrators, the report relates, said unsecured creditors,
who are owed GBP821.1 million, will not get their money back.
Only GBP600,000 could be made available to them, a proportion of
floating charge assets set aside for non-preferential creditors.
This means they would receive "significantly" less than 1p for
every GBP1 owed, as there are about 15,000 claims, the guardian
relays.

The administrators said the cost of paying out this money would
be "disproportionate to the benefits," the report says.

When Focus fell into administration in May, there were 10,000
customer orders outstanding worth GBP3 million, and the
administrators continue to receive claims for unfulfilled
customer orders, the report recalls.  Suppliers, many of which
are small businesses, are owed GBP61.4 million while employees
are owed GBP15.6m and intra-group creditors to Focus and its Do
It All brand are owed GBP415 million, the guardian notes.

The report says that the company's mezzanine debt bondholders
will also lose out.

Ernst & Young's fees for handling the administration come to
GBP4.6 billion, plus expenses of GBP72,000, the report adds.

As reported in the Troubled Company Reporter-Europe on May 30,
2011, thisishullandeastriding.co.uk reports that two closure-
threatened Focus DIY stores in East Riding of Yorkshire, England
-- one in Beverly and the other in Goole -- are being taken over.
Clearance sales have started at all 178 Focus branches in the
U.K. after the Focus DIY chain went into administration,
according to thisishullandeastriding.co.uk.  The two East
Yorkshire stores are among 55 to have been sold.  The Beverley
branch is to be a Wickes and the Goole shop will become a B&Q.

Focus (DIY) was founded by Bill Archer in 1987, with six stores
in the Midlands and the north of England.  The company now has
178 stores in England, Scotland, and Wales, and employs more than
3,900 staff.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on May 10,
2011, H&V News related that Focus DIY fell into administration.
Ernst & Young, who were appointed as administrator, said that
they are looking for a buyer for the company's stores, which
continue to trade as normal, according to H&V News.


LLOYDS TSB: Fitch Affirms 'CC' Rating on Tier 1 Subordinated Debt
-----------------------------------------------------------------
Fitch Ratings has affirmed Lloyds Banking Group plc's (Lloyds),
Lloyds TSB Bank plc's (LTSB), HBOS plc's (HBOS) and Bank of
Scotland plc's (BOS) Long- and Short-term Issuer Default Ratings
(IDR) at 'A' and 'F1' respectively.  The Outlook on the Long-term
IDRs is Stable. Lloyds and LTSB's Viability Ratings (VRs) have
been affirmed at 'bbb'.  Asset covered securities are unaffected
by these actions.

Lloyds and its banking subsidiaries's IDRs are at their Support
Rating Floor (SRF) and reflect the very high level of support
that Fitch believes is still available to the group from the UK
authorities, which hold a 40.2% stake in the bank.  Fitch revised
the systemically important UK banks' SRF to 'A' on 13 October
2011.

Lloyds' VR is underpinned by its extremely strong UK retail and
commercial banking franchises, the significant progress made by
the group in deleveraging and de-risking its balance sheet, high
liquidity buffer and solid capitalization.  Lloyds' VR also
considers its reliance on wholesale funding and the higher risks
in its real-estate loan books.

Downward pressure on the group's SRFs could increase as a result
of growing political will as well as regulatory and legislative
developments to minimize future support to large banking groups
by making them more resolvable.  However, stronger capital and
further progress towards normalized funding, profitability and
credit quality would be likely to lead to an upgrade of the
group's VRs.  An eventual downgrade of the group's SRFs would
only trigger a downgrade of the banks' IDRs if the group's VRs
fail to reach an 'a' level by that time.

During 2011, Lloyds has accelerated several initiatives including
the repayment of government funding, a sale of part of its branch
network and cost cutting.  Lloyds' non-core assets reduced by 22%
in 9M11, to GBP151 billion. Asset reductions and disposals
required by EU state aid approval (largely 600 branches) should
not materially harm the group's strong franchises, pricing power,
economies of scale or savings.  However, the temporary absence of
the CEO could be a setback for the broader strategic plan.

A return to more sustainable profits has been delayed by the
muted UK economic recovery, higher funding costs and continuing
asset quality concerns.  Lloyds made a small operating loss in
9M11.  In addition, a GBP3.2 billion exceptional provision in
respect of UK payment protection insurance (PPI) redress was
taken in Q111.

Asset quality appears to have stabilized (impaired loans were
10.3% at end-Q311 and end-2010) despite a reducing loan book.
The quality of the prime mortgage loans book is satisfactory, but
higher loan-to-value (LTV) mortgages and UK and Irish commercial
real estate (CRE) exposures remain a risk given the more
uncertain economic outlook.

Despite being the UK's largest retail deposit taker, Lloyds has
substantial reliance on wholesale funding.  The group has made
substantial progress in reducing this gap through deleveraging
and deposit growth and Fitch expects progress to continue, albeit
at a slower pace.  Government and central bank facilities have
reduced significantly YTD (end-Q311: GBP36.8 billion; end-2010:
GBP96.6 billion).  Refinancing requirements and loans/deposits
ratio (end-Q311: 140%, end-2010: 154%) will continue to fall as
the group de-levers.

Lloyds' large stock of liquid assets (GBP220 billion of
unencumbered liquid assets at end-Q311 including GBP97 billion of
FSA eligible assets) fully covered its short-term wholesale
funding (GBP141 billion) placing it in a solid position in the
current volatile environment.

Lloyds announced a tender offer for its certain lower Tier 2
(LT2) securities on 1 December 2011 (offering to exchange them at
a discount for more attractively priced LT2 securities) which is
likely to have a positive effect on its Core Tier 1 capital
position.  In time, retained earnings and de-leveraging should
strengthen Lloyds' Fitch core capital ratio (8.2% at end-H111),
which mitigates the likely impact of Basel III implementation
through deductions of deferred tax assets and equity in insurance
operations.

Various hybrid securities issued by Lloyds and its subsidiaries
are non-performing and these are rated either 'CC' or 'CCC'.  On
December 2, Fitch assigned a 'BBB-' rating to new LT2 securities
issued by LTSB.  The rating was assigned in line with the
proposals and implementation approach outlined in Fitch's
exposure draft "Rating Bank Regulatory Capital Securities"
published on 28 July 2011 at www.fitchratings.com.

The rating actions are as follows:

Lloyds

  -- Long-term IDR: affirmed at 'A'; Stable Outlook
  -- Short-term IDR: affirmed at 'F1'
  -- Support Rating: affirmed at '1'
  -- Support Rating Floor: affirmed at 'A'
  -- Senior unsecured Long-term debt: affirmed at 'A'
  -- Senior unsecured Short-term debt: affirmed at 'F1'
  -- Lower tier 2 (XS0145620281): affirmed at 'A-'
  -- All other (lower Tier 2 and upper tier 2) subordinated
      bonds: affirmed at 'BB'
  -- Viability Rating: affirmed at 'bbb'
  -- Individual Rating: affirmed at 'C'

LTSB

  -- Long-term IDR: affirmed at 'A' '; Stable Outlook
  -- Short-term IDR : affirmed at 'F1'
  -- Support Rating: affirmed at '1'
  -- Support Rating Floor: affirmed at 'A'
  -- Senior unsecured Long-term debt: affirmed at 'A'
  -- Commercial paper and senior unsecured Short-term debt:
     affirmed at 'F1'
  -- Market linked securities: affirmed at 'Aemr'
  -- Lower Tier 2 (XS0717735400, XS0717735582, XS0717735822,
     CA539473AP32): affirmed at BBB-
  -- Other lower Tier 2 subordinated debt: affirmed at 'A-'
  -- Upper Tier 2 subordinated debt: affirmed at 'CCC'
  -- Innovative Tier 1 subordinated debt (XS0156923913,
     US539473AE82, XS0474660676): affirmed at 'BB+'
  -- Other Innovative Tier 1 subordinated debt: affirmed at 'CC'
  -- Guaranteed senior Long-term debt: affirmed at 'AAA'
  -- Guaranteed senior Short-term debt: affirmed at 'F1+'
  -- Viability Rating: affirmed at 'bbb'
  -- Individual Rating: affirmed at 'C'

HBOS

  -- Long-term IDR: affirmed at 'A'; Stable Outlook
  -- Short-term IDR: affirmed at 'F1'
  -- Support Rating: affirmed at '1'
  -- Senior unsecured debt: affirmed at 'A'
  -- Lower Tier 2 debt affirmed at 'A-'
  -- Upper Tier 2 subordinated debt (XS0138988042, XS0158313758,
     XS0166717388): affirmed at 'BB+'
  -- Other upper Tier 2 subordinated debt: affirmed at 'CCC'

BOS

  -- Long-term IDR: affirmed at 'A'; Stable Outlook
  -- Short-term IDR: affirmed at 'F1'
  -- Support Rating: affirmed at '1'
  -- Support Rating Floor: affirmed at 'A'
  -- Senior unsecured debt: affirmed at 'A'
  -- Commercial paper and senior unsecured Short-term debt:
     affirmed at 'F1'
  -- Lower Tier 2: affirmed at 'A-'
  -- Upper Tier 2: subordinated debt (XS0111627112, XS0111599311)
     affirmed at 'BB+'
  -- Other upper Tier 2 subordinated debt: affirmed at 'CCC'
  -- Preference stock: affirmed at 'BB+'
  -- Guaranteed senior Long-term debt: affirmed at 'AAA'
  -- Guaranteed senior Short-term debt: affirmed at 'F1+'
  -  Individual Rating: affirmed at 'C'


ON DEMAND: Goes Into Administration, Seeks Buyer for Brands
-----------------------------------------------------------
Melanie Defries at PrintWeek reports that former On Demand
Communications Chief Executive Sara Jamison has confirmed that
the company went into administration.

Ms. Jamison said that she has joined forces with ODC Finance
Director Roger Baker to purchase the Prontaprint brand and
intellectual property from the company's administrators,
according to PrintWeek.  The report relates that ODC's
administrators are also believed to be in discussions with
interested parties over the Kall Kwik brand.

"The ODC Group has been financially stretched for a number of
years, with a high level of debt . . . . We think the Prontaprint
brand is very strong and that the service we can offer is very
marketable.  We plan to run Prontaprint as licensed businesses
rather than franchisees; as franchisees the businesses have to
pay a higher proportion of their revenue for commercial services
but as license holders they will only have to pay for use of the
brand. . . . The next step for us is to meet with business owners
to talk about our plans for Prontaprint and our goal is that our
customers' businesses continue to operate without interruption,"
Ms. Jamison told PrintWeek in an interview.

Ms. Jamison confirmed that all 30 staff at ODC have been made
redundant, the report notes.

PrintWeek discloses that ODC reached a settlement in June over
legal claims over a lack of support made by its Kall Kwik and
Prontaprint franchisees; around 45 franchisees left the business
in a staggered exit following two days of mediation.


VON ESSEN: Fowey Hall Sold Back to Luxury Family Hotels
-------------------------------------------------------
Corsnish Guardian reports that Fowey hotel's future has been
secured after its owners, Von Essen Hotel went into
administration.

The Fowey Hall Hotel was sold back to its previous owner Nigel
Chapman, according to Corsnish Guardian.

The report recalls that Fowey Hall Hotel is just one of a string
of hotels Mr. Chapman, in a joint venture partnership, has
brought back as part of Luxury Family Hotels, the hospitality
group he originally sold to Von Essen Hotels in 2006.

Corsnish Guardian notes that Fowey Hall Hotel and Polurrian Bay
Hotel will be joined by the company's four original properties;
the 26-bedroom Woolley Grange in Wiltshire, 39-bedroom The
Ickworth in Suffolk and 36-bedroom Moonfleet Manor in Dorset.

Luxury Family Hotels will also take ownership of The Elms in
Worcestershire, which was added to the Luxury Family Hotels
portfolio by Von Essen in 2007.

The Fowey Hall Hotel is reputed to have been the inspiration for
Toad Hall in Kenneth Grahame's The Wind In The Willows.

von Essen hotel chain owns 28 luxury hotels in the UK and France.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on April 25,
2011, BBC News said the holding company of the von Essen hotel
chain has appointed accountants Ernst & Young as administrators.
SoGlos.com related that von Essen is reported to have debts of
more than GBP25 million.  SoGlos.com noted that while
administrators have been appointed and the portfolio of hotels
are expected to be sold off either as a group or as individual
properties, the hotels are all expected to continue to trade as
usual.


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


* S&P Reviews Ratings on Central & Eastern European Banks
---------------------------------------------------------
Standard & Poor's Ratings Services reviewed its ratings on 17
Central and Eastern European banks by applying its new ratings
criteria and updated group methodology for banks, which were
published on Nov. 9, 2011. "See the list for the ratings on
these entities and their relevant subsidiaries, including any
rating changes that resulted from applying our new criteria," S&P
said.

"We will publish individual research updates on the banks,
including a list of ratings on affiliated rated entities, as well
as the ratings by debt type -- senior, subordinated, and junior
subordinated. The research updates will be available at
www.standardandpoors.com/AI4FI and on RatingsDirect on the Global
Credit Portal. Ratings on specific issues will be available on
RatingsDirect on the Global Credit Portal and
www.standardandpoors.com," S&P said.

Ratings List
The ratings are issuer credit ratings unless otherwise stated.

BULGARIAN BANKS

                           To                   From
Municipal Bank A.D.
                           B+/Stable/B          B+/Stable/B

UniCredit Bulbank AD
                           BBB/Stable/A-3       BBB/Stable/A-3

United Bulgarian Bank AD
                           B-/Watch Neg/C       B-/Watch Neg/C

CROATIAN BANK

Zagrebacka banka dd
                           BBB-/Negative/--     BBB-/Negative/--

HUNGARIAN BANKS
Central-European International Bank Ltd. (Unsolicited Ratings)
Public information rating  BBpi                 BBB-pi

K&H Bank (Unsolicited Ratings)
Public information rating  BBB-pi               BBB-pi

Magyar Takarekszovetkezeti Bank ZRt.
                           BB/Stable/B          BB/Stable/B

MKB Bank ZRT (Unsolicited Ratings)
Public information rating  Bpi                  BBpi

OTP Bank PLC
                          BBB-/Watch Neg/A-3   BBB-/Watch Neg/A-3

OTP Mortgage Bank
                          BBB-/Watch Neg/A-3   BBB-/Watch Neg/A-3

POLISH BANKS

Bank Handlowy w Warszawie S.A. (Unsolicited Ratings)
Public information rating  BBBpi                BBBpi

Bank Millennium Capital Group (Unsolicited Ratings)
Public information rating  BBpi                 BBpi

BRE Bank S.A. (Unsolicited Ratings)
Public information rating  BBBpi                BBBpi

Kredyt Bank S.A. (Unsolicited Ratings)
Public information rating  BBpi                 BBBpi

Powszechna Kasa Oszczednosci Bank Polski (S.A.)
(Unsolicited Ratings)
Public information rating  A-pi                 A-pi

SLOVAK BANK

Slovenska Sporitelna a.s. (Unsolicited Ratings)
Public information rating  Api                  Api

SLOVENIAN BANK

Nova Kreditna Banka Maribor d.d. (Unsolicited Ratings)
Public information rating  BBBpi                BBBpi


* BOOK REVIEW: Legal Aspects of Health Care Reimbursement
---------------------------------------------------------
Authors:  Robert J. Buchanan, Ph.D., and James D. Minor, J.D.
Publisher: Beard Books
Softcover: 300 pages
List Price: $34.95
Review by Henry Berry

With Legal Aspects of Health Care Reimbursement, Buchanan, a
professor in the School of Public Health at Texas A&M, and Minor,
an attorney, have come up with an invaluable resource for lawyers
and anyone else seeking an introduction to the legal and social
issues related to Medicare and Medicaid.  The administrative
costs of Medicare and Medicaid reimbursement have been a heated
topic of debate among public officials and administrators of
provider healthcare organizations, especially health maintenance
organizations.  Although inflation and the use of costly medical
technology are key factors in the rise in Medicare and Medicaid
costs, some control can be gained through appropriate compliance,
using more efficient procedures and better detection of fraud.
This work is a major guide on how to go about doing this.
Though mostly a legal treatise, Legal Aspects of Health Care
Reimbursement, first published in 1985, also offers commentary
through legislative and regulatory analyses, thereby explaining
how healthcare reimbursement policies affect the solvency and
effectiveness of the Medicare and Medicaid programs.
In discussing how legislation and regulations affect the solvency
and effectiveness of government-provided healthcare, the authors
offer insight into the much-publicized and much-discussed issue
of runaway healthcare costs.  Buchanan and Minor do not deny that
healthcare costs are out of control and are onerous for the
government and ruinous for many individuals.  But healthcare
reimbursement policies are not the cause of this, the authors
argue.  To make their case, they explain how the laws and
regulations in different areas of the Medicare and Medicaid
programs create processes that are largely invisible to the
public, but make the programs difficult to manage financially.
The processes are not well thought out nor subject to much
quality control, with the result that fraud is chronic and
considerable.

The areas of Medicare covered in the book are inpatient hospital
reimbursement, long-term care, hospice care, and end-stage renal
disease.  The areas of Medicaid covered are inpatient hospital
and long-term care plus abortion and family planning services.
For each of these areas, the authors discuss the conditions for
receiving reimbursement, the legislation and regulations
regarding reimbursement, the procedures for being reimbursed, the
major areas of reimbursement (for example, capital-related costs,
dietetic services, rental expenses); and court cases, including
appeals.  Reimbursement practices of selected states are covered.
For each of the major areas of interest, the chapters are
organized in a manner that is similar to that found in reference
books and professional journals for attorneys and accountants.
Laws and regulations are summarized and occasionally quoted with
expert background and commentary supplied by the authors.  With
regard to court cases and rulings pertaining to Medicare and
Medicaid, passages from court papers are quoted, references to
legal records are supplied, and analysis is provided. Though the
text delves into legal issues, it is accessible to administrators
and other lay readers who have an interest in the subject matter.
Clear chapter and subchapter titles, a table of cases following
the text, and a detailed index enable readers to use this work as
a reference.

The value of this book is reflected in the authors' ability to
distill great amounts of data down to one readable text.  It
condenses libraries of government and legal documents into a
single work.  Answers to questions of fundamental importance to
healthcare providers -- those dealing with qualifications,
compliance, reimbursable costs, and appeals -- can be found in
one place. Timely reimbursement depends on proper application of
the rules, which is necessary for a provider's sound financial
standing. But the authors specify other reasons for writing this
book, to wit: "Providers should have a general knowledge of the
law and should not rely on manuals and regulations exclusively."
By summarizing, commenting on, and citing cases relating to
principal provisions of Medicare and Medicaid, the authors
accomplish this objective.

The authors also cover the topic of fraud with respect to both
Medicare and Medicaid, offering both a legal treatment and
commentary.  At the end of each chapter is a section titled
"Outlook," which contains a discussion of government studies,
changes in healthcare policy, or other developments that could
affect reimbursement.  Although this work was published over two
decades ago, much of this discussion is still relevant today.
Finally, the book is a call for change.  The authors remark in
their closing paragraph: "Given the increasing for-profit
orientation of the major segments of the health care industry,
proprietary providers should be particularly responsive to new
efficiency incentives" in reimbursement.  In relation to this,
"policymakers [should] develop reimbursement methods that will
encourage providers to become more efficient."

Robert J. Buchanan is currently a professor in the Department of
Health Policy and Management in the School of Rural Public Health
at the Texas A&M University System Health Sciences Center.  James
D. Minor, a former law professor at the University of
Mississippi, has his own law practice.


                            *********

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 * * *