TCREUR_Public/111230.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, December 30, 2011, Vol. 12, No. 259

                            Headlines



A Z E R B A I J A N

* AZERBAIJAN: S&P Raises Rating to 'BB+'; Outlook Stable


B E L A R U S

* CITY OF MINSK: S&P Affirms 'B-' Issuer Credit Ratings


G R E E C E

FAGE DAIRY: Moody's Affirms 'B3' Long-Term Corp. Family Rating


H U N G A R Y

* CITY OF BUDAPEST: S&P Cuts Sovereign Credit Ratings to 'BB+/B'


I R E L A N D

BANK OF IRELAND: Sells Burdale Unit to Wells Fargo
FASTNET LINE: MP Urges Swansea Council to Offer Financial Support
JERRY O'REILLY: Losses Widen in 2010; Debts Total EUR40.1-Mil.
NASH POINT: S&P Raises Rating on Class E Notes to 'BB'
* IRELAND: Prospect of Debt Default Lessens, IMF Says


K A Z A K H S T A N

BTA BANK: Urges Creditors to Agree on Second Debt Restructuring
ZAMAN-BANK: S&P Assigns 'CCC+/C' Counterparty Credit Ratings


R U S S I A

INTERPROGRESSBANK: S&P Assigns 'B-/C' Counterparty Credit Ratings
* SVERDLOVSK OBLAST: S&P Raises Issuer Credit Rating to 'BB+'


U N I T E D   K I N G D O M

FASHION ROCKS: In Administration; Buyer Being Sought
* UK: NHS to Face Financial Challenge Next Year
* UK: South West Business Insolvency Up 26% in November 2011
* UK: Severe Weather May Send Thousands of Firms Into Insolvency


X X X X X X X X

* BOOK REVIEW: Ralph H. Kilmann's Beyond the Quick Fix


                            *********


===================
A Z E R B A I J A N
===================


* AZERBAIJAN: S&P Raises Rating to 'BB+'; Outlook Stable
--------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on State Oil
Company of Azerbaijan Republic (SOCAR) to 'BB+' from 'BB'. The
outlook is stable.

"We upgraded SOCAR because we upgraded the Republic of Azerbaijan
(BBB-/Stable/A-3)," S&P said.

"The rating action is in line with Standard & Poor's methodology
for rating government-related entities (GREs). We continue to
view the likelihood that Azerbaijan would provide timely and
sufficient extraordinary government support to SOCAR as
'extremely high'. SOCAR is 100% government-owned and vertically
integrated. We view SOCAR's role in the country's economy as
'critical', owing to the company's central role in the country's
most strategic sector, hydrocarbons, and its position as the
country's largest employer. SOCAR has a monopoly position in
refining and petrochemicals, and is a minority shareholder and
the government's representative in Azerbaijan's largest
internationally led upstream projects, Azeri-Chirag-Guneshli
(ACG; 11.6461% ownership) and Shah-Deniz (10%)," S&P said.

"We view SOCAR's link to the Azerbaijani government as 'very
strong'. The government appoints the company's key management and
determines its strategy, although day-to-day operations are
managed at the corporate level. We believe that if SOCAR were to
default, it would have severe negative consequences for the
sovereign's reputation and access to financing. The government
provided equity financing and loans from state-owned banks to
SOCAR to support investments and refinancing during the 2008-2009
crisis. The US$485 million acquisition of an additional 1.6461%
stake in ACG in July 2011 was financed with long-term debt
provided by the State Oil Fund of Azerbaijan (SOFAZ; not rated).
Still, the majority of SOCAR's debt is not guaranteed by the
government," S&P said.

"We assess the company's stand-alone credit quality at 'bb', its
business risk profile as 'fair', and its financial risk profile
as 'significant'. This reflects an only fair quality of assets,
including mature majority-owned fields; underutilized and,
therefore, low-profit refineries and petrochemical plants; and
only minority stakes in ACG and Shah-Deniz. The government has
previously used SOCAR to save other underperforming state-owned
entities, AzeriKimiya and Azerigas," S&P said.

"Our assessment also reflects potential for large investments,
such as projects to expand the country's oil production, or
further acquisitions. The company has been prone to acquisitions,
as demonstrated by its US$2 billion purchase of a controlling
stake in Turkey-based petrochemical plant Petkim. In addition,
Azerbaijan is considering rebuilding and modernizing the
country's entire refining and petrochemical industry. If the
government does not provide full equity financing for such
upgrades, SOCAR's capital expenditures will materially increase.
However, SOCAR enjoys considerable ongoing support from the
government, and its adjusted debt is manageable, in our view,
which leads to comfortable credit metrics," S&P said.

The stable outlook reflects the stable outlook on Azerbaijan.

"The rating on the sovereign is the key factor for the rating on
SOCAR, given our view of an 'extremely high' likelihood of
extraordinary government support. In line with our methodology
for GREs, an upgrade or a downgrade of the sovereign would
trigger a commensurate upgrade or a downgrade on SOCAR," S&P
said.

However, additional ratings upside could result if SOCAR's stand-
alone performance improved, for example, if large investments
were financed by the government rather than corporate debt.

"Downside pressure on the rating is quite unlikely, in our view,
but could materialize if SOCAR's link with the state were to
weaken. In line with our methodology for GREs, a deterioration of
SOCAR's stand-alone credit quality would pressure the rating only
if it were very material, that is to 'b+' or below, which we view
as unlikely," S&P said.


=============
B E L A R U S
=============


* CITY OF MINSK: S&P Affirms 'B-' Issuer Credit Ratings
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' long-term
foreign and local currency issuer credit ratings on the
Belarusian City of Minsk. The outlook is negative.

"The rating on Minsk reflects our view of Belarus' volatile and
underfunded system of interbudgetary relations, leading to the
city's very limited budget predictability and flexibility. The
rating is also constrained by Minsk's large infrastructure needs
and high contingent liabilities. Factors supporting the rating
are the city's status as the country's largest administrative,
financial, and commercial center; its consistently very strong
operating surplus; moderate debt burden; and consistently high
cash reserves," S&P said.

"The rating on Minsk is capped at 'B-' by the Belarusian foreign
currency sovereign credit rating. This is according to our
assessment of the framework for intergovernmental relationships
between the central government and its local and regional
governments (LRGs) in Belarus, whereby we believe that a
Belarusian LRG cannot be rated above the sovereign. However, in
accordance with our criteria, we have assigned an 'indicative
credit level' (ICL) of 'b+' to Minsk," S&P said.

"The ICL is not a rating. It is a means of assessing an LRG's
intrinsic creditworthiness under the assumption that there is no
sovereign rating cap. The ICL results from the combination of our
assessment of an LRG's individual credit profile and the effects
we see of the institutional framework in which it operates," S&P
said.

"We believe that the scenario under which we could improve the
ICL on Minsk within the next 12 months is very unlikely. On the
contrary, the ICL on Minsk could weaken by one or two levels
within the next 12 months in the event of a significant weakening
of the city's liquidity position resulting from a rapid
accumulation of short-term debt, either directly or via municipal
companies, amid worsening borrowing conditions," S&P said.

"We believe that the institutional framework under which
Belarusian regional governments operate is very centralized and
evolving, which limits the predictability and flexibility of
Minsk's financial policy. The central government defines the
types, rates, and bases of most taxes, sets norms of regional
spending through established social standards, limits regions'
budget deficits, and authorizes all borrowings," S&P said.

The predictability of the city's budgetary performance is further
clouded by uncertainty regarding medium-term macroeconomic
indicators under significant depreciation of the Belarusian
ruble, which has lost almost 65% of its value against the
currency basket, and ensuing high inflation with CPI reaching
100% (on a cumulative basis) in 2011.

"As Belarus' largest administrative, financial, and commercial
center, Minsk is wealthy and diversified relative to other
Belarusian regions, and we expect this will continue to support
its budgetary performance. Despite ongoing economic difficulties,
the city's official unemployment rate is low and its estimated
GDP per capita exceeds the national average by 1.5x. Contrary to
the national trend, the city's population is increasing and Minsk
is the main focal point for investments in Belarus," S&P said.

"High inflation is also supporting the city's strong budgetary
performance. With fast-growing revenues, and expenditures lagging
behind, the city will likely demonstrate a surplus after capital
accounts at a strong 11% of revenues in 2011. Nevertheless,
spending will likely pick up greatly afterwards, which would put
pressure on the city's financial indicators. In our base-case
scenario we expect rising salaries and maintenance costs to
decrease the city's operating surplus to a still-hefty 15%-17% of
operating revenues in 2012-2014," S&P said.

"We note that private investment in Minsk is limited, compelling
the city itself to maintain high capital spending both directly
and via municipal companies, which exposes it to large contingent
liabilities. It has also committed to an ambitious housing
construction program and large-scale infrastructure improvements
ahead of hosting the World Ice Hockey Championship in 2014. In
our base-case scenario, we forecast that rising infrastructure
needs will increase the city's deficit after capital accounts as
a percentage of total revenues up to 7% on average in 2012-2014,
from 0.5% for 2010," S&P said.

"We believe, however, that for the time being the city benefits
from its sizable debt-raising capacity. Although we expect the
city's tax-supported debt, including guarantees extended on
municipal companies' borrowings, to increase over the next three
years, it will likely stay below a still-moderate 60% of
consolidated operating revenues by year-end 2014. Owing to rigid
limits on its deficit, in 2010-2011 Minsk financed a large part
of its investment program via municipal companies that, combined
with the currency depreciation effect, raised its tax-supported
debt from 9% of consolidated operating revenues at end-2010 to
about 30% by end-2011," S&P said.

"We view Minsk's liquidity position as neutral despite a recent
devaluation of the Belarusian ruble (BYR), which somewhat
increased the city's tax-supported debt. Our assessment of
liquidity balances on-average high cash reserves with uncertain
access to external liquidity and a weak domestic banking system,"
S&P said.

"We expect that throughout 2012 the city's cash and deposit
holdings will exceed its debt service, including the redemption
of city-guaranteed bank loans of municipal companies and leasing
payments of its transport company falling due in the next 12
months. In the first nine months of 2011, the city's cash on
accounts and term deposits averaged about BYR0.9 trillion (about
$100 million) while debt service for the fourth quarter of 2011
and first three quarters of 2012 amounts to about BYR0.6
trillion. Having applied a 30% haircut to deposits the city holds
in domestic banks rated in the 'B' category, we still assume that
the city's average cash position will cover its debt service in
2012. We don't expect Minsk's debt service, including interest
payments and redemption of domestic bonds and guaranteed loans,
to exceed a modest 7% of operating revenues until 2014," S&P
said.

"We view Minsk's access to external liquidity as 'uncertain',
given the weaknesses of Belarus' domestic capital market and its
banking system, reflected in our BICRA of '10', with '1' being
the lowest risk and '10' being the highest," S&P said.

The negative outlook on the rating reflects that on the Republic
of Belarus, because the long-term rating on Minsk is capped by
the long-term foreign-currency rating on the sovereign.

"With an ICL of 'b+' and a rating capped at 'B-', we currently do
not envisage a realistic scenario under which Minsk's ICL would
weaken by three levels in order to fall below the sovereign cap.
Therefore we would be more likely to downgrade the city as a
result of us downgrading the sovereign than as a result of a
weakening of its ICL within the outlook horizon," S&P said.

"We could raise the rating on Minsk within next 12 months,
however, if we were to raise the ratings on Belarus and if
Minsk's strong budgetary performance and solid liquidity position
were maintained, in line with our base-case scenario," S&P said.


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


FAGE DAIRY: Moody's Affirms 'B3' Long-Term Corp. Family Rating
--------------------------------------------------------------
Moody's Investors Service maintains the following ratings on Fage
Dairy Industry S.A.

Long Term Corporate Family (foreign currency) ratings of B3

Probability of Default rating of B3

Senior Unsecured (domestic currency) ratings of B3; LGD4-50

BACKED Senior Unsecured (foreign currency) ratings of B3;
LGD4-50

Ratings Rationale

Fage's corporate family rating (CFR) at B3 reflects the company's
small size as well as its exposure to the distressed Greek
economy.

More positively, Fage's rating remains supported by the company's
strong growth in the US which is currently offsetting the revenue
decline in its domestic market.  Moody's expects that Fage's US
business will continue to deliver solid results as volumes with
national supermarkets increase.

The outstanding EUR101.5 million unsecured notes issued by Fage
and the US$150 million unsecured notes issued jointly by Fage and
Fage USA Dairy Industry Inc. (Fage USA), a subsidiary of Fage,
are rated at B3. The notes are rated at the same level as the CFR
given the absence of secured debt in Fage's capital structure.

The outlook is stable and reflects our expectation that Fage will
maintain its solid performance in the US, compensating for the
uncertain Greek market. It also assumes the maintenance of an
adequate liquidity profile which we will closely monitor.

Positive pressure on the rating would require evidence of
continued growth in the company's export markets, which would
offset margin pressure in Greece and lead to EBITDA margins above
10%, positive free cash flow generation and debt/EBITDA trending
towards 4.5x on a sustainable basis. The company's liquidity
position will also be considered in our assessment.

Downward pressure on the company's ratings and/or outlook would
be likely if evidence of a weaker competitive position in the
local market or slower growth in international sales, thereby
leading to low-single-digit EBITDA margins, negative free cash
flow generation, a debt/EBITDA ratio above 6.5x, and/or tighter
liquidity.

The principal methodology used in rating Fage Dairy Industry S.A.
was the Global Packaged Goods Industry Methodology published in
July 2009. Other methodologies used include Loss Given Default
for Speculative-Grade Non-Financial Companies in the U.S., Canada
and EMEA published in June 2009.

Fage Dairy Industry S.A. manufactures and commercializes dairy
products in Greece (its domestic market) and in the US.  The
company also has a presence in other European markets such as UK,
Italy and Germany.

The Filippou family, which founded the company in 1926, still
retains full control. Fage reported around EUR187.7 million of
revenue for the first six months of 2011.


=============
H U N G A R Y
=============


* CITY OF BUDAPEST: S&P Cuts Sovereign Credit Ratings to 'BB+/B'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term foreign and local currency issuer credit ratings on the City
of Budapest to 'BB+/B' from 'BBB-/A-3'. "We removed the ratings
from CreditWatch, where they had been placed with negative
implications on Nov. 21, 2011. The outlook is negative," S&P
said.

"The rating action reflects our recent downgrade of the Republic
of Hungary (BB+/Negative/B;). According to our criteria, we do
not rate Budapest above the sovereign rating," S&P said.

"Our methodology, however, enables us to assign an indicative
credit level (ICL). We assess Budapest's ICL as 'bbb', down from
our previous assessment of 'bbb+'. We lowered Budapest's ICL by
one notch reflecting the revised medium-term economic growth
prospects of the sovereign and considering that Budapest
generates 38% of Hungary's GDP. An ICL is not a rating but a
means of assessing the intrinsic creditworthiness on an LRG under
the assumption that there is no sovereign rating cap. The ICL
results from the combination of our assessment of an LRG's
individual credit profile and the features of the institutional
framework in which it operates," S&P said.

"Our ICL on Budapest reflects our view of the city's positive
liquidity situation, with free cash exceeding the next-12-months
debt service requirements. The ICL also reflects our view of
Budapest's strong budget performance and the city
administration's commitment to limiting nominal debt in 2011-2014
to close to the year-end 2010 level of Hungarian forint (HUF) 173
billion. The ICL on Budapest is constrained by our view that the
city faces continuing pressure stemming from the weak financial
performance of its public transport company. We also see a high
level of uncertainty regarding the development of the
institutional framework for municipalities and the municipal
enterprise sector in 2012. Furthermore, Budapest has only average
budgetary flexibility, in our view," S&P said.

"We could lower the ratings on Budapest should we further lower
our ratings on Hungary. Given that our ICL on Budapest is 'bbb',
we currently view it as unlikely that Budapest's ICL would weaken
significantly. We therefore believe the rating on the city would
be more likely to be lowered as the result of the sovereign
downgrade than as a result of the lowering of city's ICL," S&P
said.

"We currently envisage limited upgrade potential. The ratings on
Budapest are capped by the foreign currency ratings on the
Republic of Hungary, according to the current framework for
intergovernmental relationships between the central government
and LRGs," S&P said.


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


BANK OF IRELAND: Sells Burdale Unit to Wells Fargo
--------------------------------------------------
Simon Carswell at The Irish Times reports that Bank of Ireland
has sold its UK asset-based lender Burdale to the US bank Wells
Fargo, netting about EUR690 million for the bank before the costs
of the transaction are included.

According to the Irish Times, the bank said that the sale would
not "adversely impact" its core tier one capital ratios and that
the money would be used to reduce the lender's central bank
borrowings.

The bank, as cited by the Irish Times, said that the business was
sold at a discount of about 0.4% to Burdale's total loan
commitments of about GBP1.3 billion (EUR1.6 billion) at the end
of November and a discount of about 0.8% of total drawn balances
of about GBP575 million at the same date.

Bank of Ireland gave an update on the progress of its
deleveraging, saying that it had divested itself of EUR8.6
billion in loans, businesses and other assets at an average
discount of 7.1%, the Irish Times relates.

The deleveraging is a condition of the EU-IMF bailout to reduce
the bank's reliance on funding from the European and Irish
Central Banks, the Irish Times notes.

The divestments are "expected to have a marginal net positive
impact" on the bank's core tier one capital ratio, the bank said,
and the lender expects that it will be able to complete the
remaining divestments under the base case discount assumptions
used in the Central Bank stress tests last March, the Irish Times
discloses.

Following the stress tests, the bank said that it planned to
reduce the size of its loan book from EUR114 billion at the end
of 2010 to about EUR90 billion by the end of 2013, a target set
under the terms of the EU-IMF bailout agreement, the Irish Times
recounts.

As reported by the Troubled Company Reporter-Europe on Dec. 22,
2011, Bloomberg News related that Bank of Ireland won European
Union approval for Irish government help after it agreed to
reduce reliance on wholesale funding and focus on "balanced-risk"
lending in Britain and Ireland.

Headquartered in Dublin, Bank of Ireland --
http://www.bankofireland.com/-- provides a range of banking and
other financial services.  These include checking and deposit
services, overdrafts, term loans, mortgages, business and
corporate lending, international asset financing, leasing,
installment credit, debt factoring, foreign exchange facilities,
interest and exchange rate hedging instruments, executor,
trustee, life assurance and pension and investment fund
management, fund administration and custodial services and
financial advisory services, including mergers and acquisitions
and underwriting.  The Company organizes its businesses into
Retail Republic of Ireland, Bank of Ireland Life, Capital
Markets, UK Financial Services and Group Centre.  It has
operations throughout Ireland, the United Kingdom, Europe and the
United States.


FASTNET LINE: MP Urges Swansea Council to Offer Financial Support
-----------------------------------------------------------------
South Wales Evening Post reports that Swansea East MP Sian James
is urging Swansea Council to help Fastnet Line.

Swansea Council has already stated it cannot help, South Wales
Evening Post notes.

"We are not in a position to offer financial support to the
Swansea to Cork ferry but, as in the past, we will continue to
offer alternative support," South Wales Evening Post quotes a
spokesman for the local authority as saying.  "This would include
support with marketing the ferry."

Mrs. James is now calling on the council to draw upon its
economic and social wellbeing powers to support the ferry
service, South Wales Evening Post relates.

The MP has written to Swansea Council urging officials to look at
ways of supporting the threatened service which the co-operative
society estimates has been worth around GBP18 million to the
Swansea economy since its launch in March 2010, South Wales
Evening Post discloses.

"We need to look at the positive impact this vital link has had
on the local economy and what will happen to business investment
if the service is closed down permanently," Mrs. James, as cited
by South Wales Evening Post, said.  "As such, I am sure that the
council has the wherewithal and experience to come up with
suggestions for an in-kind contribution that would help reduce
operational costs and overheads."

The MP has asked for the matter to be tabled for discussion by
councilors at the earliest opportunity, according to South Wales
Evening Post.

As reported by the Troubled Company Reporter-Europe on Dec. 28,
2011, Fastnet Line needs to raise a remaining EUR1 million by
January next year to save the Cork Swansea ferry and get it back
in operation in March.  Fastnet Line confirmed at a Dec. 20
hearing in the High Court that there is only one investment
proposal available to save the Cork Swansea ferry, which is
currently in examinership.  The examinership process will
continue with the West Cork Tourism Co-Op emerging as the only
viable entity capable of returning the ferry to a profitable
business model.  The West Cork Tourism Co-Operative Society
outlined on Dec. 20 the urgent funding required to secure the
future of the ferry service, which will allow them to present a
financial proposal to the Examiner in early January.  As of
Dec. 20, EUR673,000 has been raised by individual donors,
customers, shareholders and local businesses, leaving just under
EUR1 million to be raised.

The Fastnet Line companies are 100%-owned by the West Cork
Tourism Co-Operative Society Limited, which was formed in April
2009 to fund and operate the Cork-Swansea ferry service as a
community-based cooperative of over 450 investors and enterprises
in both Wales and Ireland.  Since March 2010, about 153,000
passengers have used the ferry service.  A fundraising drive is
underway in Ireland and Wales.  The West Cork Tourism
Cooperative, which currently owns Fastnet Line has agreed to
present an investment proposal to the examiner in early 2012 in
order to ensure the survival of the unique Cruise Ferry service
between Ireland and Wales.


JERRY O'REILLY: Losses Widen in 2010; Debts Total EUR40.1-Mil.
--------------------------------------------------------------
Gordon Deegan at Irish Examiner reports that losses widened at
Jerry O'Reilly & Associates Ltd. to EUR40 million last year.

According to Irish Examiner, Jeremiah O'Reilly & Associates Ltd.
has submitted a business plan to National Asset Management Agency
and, according to the accounts for 2010, "the ultimate disposal
of the company's property assets has been included within an
overall NAMA plan submitted by company director, Jeremiah
O'Reilly".

The accounts show that the company had creditors totalling
EUR43.5 million at the end of December last and its bank loans
are secured by personal guarantees from Mr. O'Reilly and a fixed
and floating charge over the assets of the company, Irish
Examiner discloses.

The accounts confirm Jerry O'Reilly & Associates Ltd. recorded a
loss of EUR632,604 in 2010 concerning loans written off that were
advanced to a parent company, Irish Examiner notes.  The firm had
liabilities totalling EUR40.1 million, Irish Examiner states.

According to Irish Examiner, a note attached to the accounts
states: "The company continues to be dependent on the continuing
financial support of its lending institutions and the directors
are currently in negotiations with NAMA regarding the ultimate
disposal of the company's property assets.

"On the basis that the agreement and implementation of this NAMA
plan will take some time, the directors consider it appropriate
to prepare the accounts on a going concern basis."

Auditors for the company, O'Neill Foley, state that during the
time it takes NAMA to approve and implement the business plan,
the company will continue to maintain and manage the entire
property portfolio included within the plan submitted by
Mr. O'Reilly, Irish Examiner discloses.

O'Neill Foley state that loan facility letters have expired and
debts were transferred to NAMA in 2010, Irish Examiner relates.

Jerry O'Reilly & Associates Ltd. is a property company.


NASH POINT: S&P Raises Rating on Class E Notes to 'BB'
------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Nash Point CLO's class B, C, D, and E notes, and affirmed its
rating on the class A notes.

"The rating actions follow our credit and cash flow analysis of
the transaction -- using data from the latest available trustee
report, dated Oct. 14, 2011 -- which indicates that the
transaction's performance has improved since our previous full
analysis in April 2010," S&P said.

"The trustee report shows that all classes of notes are currently
passing the overcollateralization tests. Additionally, the
percentage of portfolio assets that we treat as defaulted in our
analysis has decreased, and the reported weighted-average spread
earned on the collateral pool has increased," S&P said.

"We have observed a decrease in the portfolio's weighted-average
maturity and an improvement in its credit profile. Our analysis
indicates that these developments have lowered scenario default
rates across all rating levels," S&P said.

"We have subjected the transaction's capital structure to a cash
flow analysis to determine the break-even default rate for each
rated class. In our analysis, we used the portfolio balance that
we consider to be performing, the reported weighted-average
spread, and the weighted-average recovery rates that we
considered to be appropriate. We incorporated various cash flow
stress scenarios -- using our standard default patterns, levels,
and timings for each rating category assumed for each class of
notes, in conjunction with different interest stress scenarios.
We found that the credit enhancement available to the class B, C,
D, and E notes is commensurate with higher ratings than
previously assigned. We have therefore raised our ratings on each
of these classes of notes," S&P said.

"Approximately 32% of the performing assets are non-euro-
denominated. Because all liabilities are denominated in euro, the
issuer has entered into cross-currency swap agreements throughout
the life of the transaction to mitigate risk of foreign-exchange-
related losses. Our analysis of these counterparties and the swap
documentation indicates that they are not consistent with our
2010 counterparty criteria (see 'Counterparty And Supporting
Obligations Methodology And Assumptions,' published on Dec. 6,
2010). To assess the potential impact on our ratings, we have
assumed that the transaction does not benefit from the currency
swaps. We concluded that the rating on the class A notes is
constrained at its current level. We have therefore affirmed our
'AA (sf)' rating on the class A notes. Ratings on classes B to E
notes are supported by the ratings of the swap counterparties,"
S&P said.

Nash Point CLO is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms. The transaction closed in July
2006 and is managed by Sankaty Advisors LLC.

               Standard & Poor's 17g-7 Disclosure Report

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:

        http://standardandpoorsdisclosure-17g7.com

Ratings List

Class           Rating
          To             From

Nash Point CLO

EUR600 Million Senior Secured Floating-Rate, Senior Secured
Deferrable Floating-Rate, and Subordinated Notes

Ratings Raised

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

Rating Affirmed

A         AA (sf)


* IRELAND: Prospect of Debt Default Lessens, IMF Says
-----------------------------------------------------
According to The Irish Times' Dan O'Brien, the International
Monetary Fund in a report published on Dec. 20 said that the
prospect of the Irish State defaulting on its debts has receded
over the past three months.

Lower interest rates on the European portion of the EU-IMF
bailout funds and the correcting of an accounting error by the
Department of Finance have had the effect of lowering projections
for the national debt, the Irish Times notes.

These effects have been partially offset, the report, as cited by
the Irish Times, said, by lower economic growth projections and
additional Government outlays, including the costs of bailing out
credit unions.

However, the report concluded that "on balance, the debt outlook
has improved somewhat" over the past three months, the Irish
Times notes.

It was announced on Dec. 20 that the executive board of the IMF,
at a meeting on December 14th, cleared the disbursement of the
latest tranche of bailout funds of EUR3.9 billion, the Irish
Times relates.  This brings the amount the Irish State has thus
far received from the IMF to EUR13 billion, the Irish Times
states.

The total amount of bailout funds received from all sources to
date stands at EUR29.7 billion, the Irish Times notes.

The bailout foresees EUR67.5 billion being disbursed over a
three-year period, according to the Irish Times.

The IMF board also agreed to bring forward disbursements due to
be made later in 2012 to the first quarter of the year, the Irish
Times says.

An IMF spokesman said on Dec. 20 that this would improve the
Government's cash position and enhance its ability to regain
access to the bond market, the Irish Times recounts.


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


BTA BANK: Urges Creditors to Agree on Second Debt Restructuring
---------------------------------------------------------------
Isabel Gorst at The Financial Times reports that BTA Bank has
asked creditors to agree a second debt restructuring, warning
that it was on the brink of default.

The FT relates Anvar Saidenov, chairman of BTA, said the bank
would struggle to meet its next interest payment and needed to
take urgent action to avoid bankruptcy.

"The board is unanimously of the view that a further
restructuring of the bank's balance sheet is in the best
interests of all the banks creditors, shareholders and GDR
holders," the FT quotes Mr. Saidenov as saying in an open letter
posted on BTA's Web site on Tuesday.  "If nothing is done to
address this situation the bank is likely to be placed in
conservation (administration) or commence bankruptcy proceedings
under Kazakh law."

BTA currently relies on Samruk Kazyna, which has an 81.5%
shareholding, for support as it struggles with bad loans, the
high cost of servicing government funding and soaring legal
bills, the FT notes.

According to the FT, Mr. Saidenov warned that BTA "might not have
sufficient prudent levels of cash to make the next interest
payment on certain of its indebtedness", raising questions about
the bank's ability to pay a US$160 million eurobond coupon that
falls due early next month.  He said that a repo-facility with
Kazakhstan's National Bank was limited in size and could not
continue indefinitely, the FT relates.

Investors have braced for a request to restructure BTA debt since
October when the bank published financial statements for the
first nine months revealing negative equity of approximately
US$2.2 billion as well as negative interest margins, the FT
recounts.  Mr. Saidenov said BTA's financial position had
deteriorated since then and warned that the bank could face a
capital shortfall of US$5.1 billion by the end of next year if
urgent action was not taken, according to the FT.

BTA will meet investors in London, New York, and Singapore before
hosting a shareholders meeting on January 26 to discuss the
proposed debt restructuring. Lazard Freres is advising BTA on the
matter, the FT discloses.

As reported by the Troubled Company Reporter-Europe, Bloomberg
News related that Kazakh sovereign-wealth fund Samruk-Kazyna took
over BTA in February 2009, two months before the nation's largest
lender at the time defaulted on US$12 billion of debt.

                          About BTA Bank

BTA Bank AO (BTA Bank JSC), formerly Bank TuranAlem AO --
http://bta.kz/-- is a Kazakhstan-based financial institution,
which is involved in the provision of banking and financial
products for private and corporate clients.

The BTA Group is one of the leading banking groups in the
Commonwealth of Independent States and has affiliated banks in
Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and
Turkey.  In addition, the Bank maintains representative offices
in Russia, Ukraine, China, the United Arab Emirates and the
United Kingdom.  The Bank has no branch or agency in the United
States, and its primary assets in the United States consist of
balances in accounts with correspondent banks in New York City.

As of November 30, 2009, the Bank employed 5,043 people inside
and 4 people outside Kazakhstan.  It has no employees in the
United States.  Most of the Bank's assets, and nearly all its
tangible assets, are located in Kazakhstan.


ZAMAN-BANK: S&P Assigns 'CCC+/C' Counterparty Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC+' long-term
and 'C' short-term counterparty credit ratings to Kazakhstan-
based JSC Zaman-Bank. "At the same time, we assigned a Kazakhstan
national scale rating of 'kzB-'. The outlook is stable," S&P
said.

"The ratings on Zaman-Bank reflect its 'weak' business position,
'very strong' capital and earnings, 'weak' risk position, 'below
average' funding, and 'adequate' liquidity, as our criteria
define these terms. The outlook is stable. The stand-alone credit
profile (SACP) is 'ccc+'," S&P said.

"Under our bank criteria, we use our Banking Industry Country
Risk Assessment (BICRA) economic risk and industry risk scores to
determine a bank's anchor stand-alone credit profile (SACP), the
starting point in assigning an issuer credit rating (ICR). Our
anchor SACP for a commercial bank operating only in Kazakhstan is
'bb-'," S&P said.

"Our assessment of Zaman-Bank's 'weak' business position reflects
its extremely small market share of less than 0.1%. It also
reflects the lacking distribution base and business
diversification, owing to its presence essentially in only one
town in Kazakhstan, Ekibastuz, and its focus on servicing a
relatively small number of corporate clients mostly within the
Zaman group that comprises companies operating in the coal and
mining, railroad equipment, real estate, and construction
businesses," S&P said.

"Our 'very strong' assessment of capital and earnings reflects
the bank's projected risk adjusted capital (RAC) ratio before
adjustment for diversification of about 38%-39% in the next 24
months, balanced by the low absolute amount of the capital base,"
S&P said.

"We assess Zaman-Bank's risk position as 'weak', owing mainly to
its very high lending concentrations on the corporate loan
portfolio side, with top 20 borrowers accounting for 97% of total
loan portfolio (about 90% of total equity). NPLs increased from
2.2% to 6.02% of the total loan portfolio between Dec. 31, 2010,
and Sept. 30, 2011, despite no growth on the lending side," S&P
said.

"The bank ratings are at the same level as its SACP because we
give no uplift for extraordinary government support to the bank,
which we consider to be of 'low' systemic importance in a
'supportive' country," S&P said.

"The stable outlook reflects our expectation that the main rating
drivers will remain unchanged over the next 12 months. We
anticipate that profitability will either remain stable or
improve marginally, reflecting the bank's efforts to improve
operational efficiency and recover problem loans, as well as to
achieve moderate growth in the range of 5%-10% in the near term,"
S&P said.


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


INTERPROGRESSBANK: S&P Assigns 'B-/C' Counterparty Credit Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' long-term
and 'C' short-term counterparty credit ratings to Russia-based
InterProgressBank (IPB). "We also assigned a 'ruBBB' Russia
national scale rating. The outlook is stable," S&P said.

"The ratings on IPB reflect its 'weak' business position, 'weak'
capital and earnings, 'moderate' risk position, 'average' funding
and 'adequate; liquidity, as our criteria define these terms. The
stand-alone credit profile (SACP) is 'b-'," S&P said.

"Under our bank criteria, we use our Banking Industry Country
Risk Assessment (BICRA) economic and industry risk scores to
determine a bank's anchor, the starting point in assigning an
issuer credit rating. The anchor for a commercial bank operating
only in Russia is 'bb'," S&P said.

"Our 'weak' assessment of IPB's business position is based on the
bank's limited market share and customer franchise, which is
focused on small and midsize enterprises (SMEs) in the Moscow
region. With total assets of Russian ruble (RUB) 15 billion ($500
million) as of Dec. 31, 2010, IPB is a small bank ranking No. 167
among Russian banks by assets. The bank has a stable core
customer base made up of state organizations, hospitals, and
companies domiciled in the southern administrative district of
Moscow," S&P said.

"We project that the bank's risk-adjusted-capital (RAC) ratio
before adjustments for diversification will be about 5% at year-
end 2011, taking into account the capital increase of RUB500
million in February 2011," S&P said.

"We assess IPB's risk position as 'moderate' given the bank's
rapid loan growth and high single-name loan concentrations. Loan
leverage increased from 35% of assets at year-end 2010 to 60% as
of Oct. 1, 2011, due to a selldown of the securities portfolio.
IPB's funds mainly consist of customer deposits, among which 65%
were corporate and 35% retail as of Nov. 1, 2011. A high portion
of corporate funds are demand accounts (about 70%), which is
mitigated, in our view, by the stable historical customer base,"
S&P said.

"The issuer credit rating includes no uplift for extraordinary
external support, either from shareholders or the government. In
our view, the bank has 'low' systemic importance in Russia's
banking sector," S&P said.

"The stable outlook balances our view of the bank's limited
customer franchise and rapid loan growth, given the recently
increased capital and a stable customer base," S&P said.

"We would consider a positive rating action if the bank
strengthens its business position, improves its capital adequacy
above a 5% RAC ratio through additional capital injections and/or
retained earnings, while maintaining adequate asset quality and
stable funding," S&P said.

"We would consider a negative rating action if the Russian
financial market deteriorates, if the bank lends significantly to
related parties, if single-party loan concentrations increase, if
asset quality deteriorates, or if capital adequacy deteriorates
with the RAC ratio dropping below 3%. Deterioration in funding
and liquidity, either through a significant outflow of deposits
or a reduction in the proportion of liquid assets to total assets
could also trigger a negative rating action," S&P said.


* SVERDLOVSK OBLAST: S&P Raises Issuer Credit Rating to 'BB+'
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term issuer
credit rating on the Russian region Sverdlovsk Oblast to 'BB+'
from 'BB'. The outlook is stable.

"We raised the rating because Sverdlovsk Oblast's budgetary
performance was stronger than we expected, thanks to solid
revenue recovery and prudent cost controls," S&P said.

The rating on Sverdlovsk Oblast, which is located in the Urals
Federal District of the Russian Federation (foreign currency
BBB/Stable/A-3; local currency BBB+/Stable/A-2; Russia national
scale 'ruAAA'), is constrained by limited budget predictability
and flexibility, volatile budget revenues, and material spending
pressures.

The oblast's creditworthiness benefits from a low debt burden,
strong liquidity, and moderate budgetary performance.

"The stable outlook reflects our view that the volatility of
Sverdlovsk Oblast's budget revenues and material spending needs
will likely be counterbalanced if it continues its cautious
spending policies. We think this will translate into a solid
liquidity position and an only modest debt burden," S&P said.

"We would take positive rating actions if Sverdlovsk Oblast was
able to maintain the budgetary performance levels it achieved in
2010-2011, thanks to stronger revenues on the back of economic
recovery and tight spending controls. In the longer term,
positive actions would also depend on Sverdlovsk Oblast's
improving its medium-term financial planning and
institutionalizing reserve and liquidity policies, which would
offset revenue volatility risks and cover future debt service,"
S&P said.

"We would take negative rating actions if the oblast failed to
absorb existing expenditure and political pressures, leading to a
significant increase in operating and capital spending from 2012.
In this case, the oblast's budgetary performance would
structurally deteriorate in line with our downside scenario,
resulting in an eroding liquidity position, in particular via a
rapid decline in accumulated cash reserves," S&P said.


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


FASHION ROCKS: In Administration; Buyer Being Sought
----------------------------------------------------
Peter Ranscombe at The Scotsman reports that Fashion Rocks Retail
has gone into administration.

According to the Scotsman, the firm's two stores -- in the
Westfield shopping centre near the Olympic village in Stratford
and at Sheffield's Meadowhall center -- will continue to trade
while administrators at Begbies Traynor seek a buyer.

The Scotsman relates that the firm said Paul Dounis, David Acland
and Lila Thomas from Begbies Traynor were appointed as joint
administrators on Dec. 19.  The joint administrators said that
they plan to keep on all 64 staff while a buyer is sought, the
Scotsman discloses.

"The stores only opened in the past year, but unfortunately they
have suffered from the continuation of the weak economy and the
fall in consumer spending, which has hit the retail sector hard
and particularly sales of luxury items.  The company made a major
investment when it took on the premises and purchased a large
amount of designer stock, but sales failed to materialize," the
Scotsman quotes Mr. Dounis as saying.  "The Sheffield and London
stores will continue to operate as normal in the run-up to
Christmas and during the busy January sales period while the
company is marketed and a buyer is sought."

Fashion Rocks Retail is a designer clothing business launched by
Edinburgh-based David Douglas and Angus Morrison as a spin off
from their charity fashion events.


* UK: NHS to Face Financial Challenge Next Year
-----------------------------------------------
Sarah Neville at The Financial Times reports that Mike Farrar,
chief executive of the National Health Service Confederation, an
umbrella body that represents hospitals, GPs and other
organizations that provide and buy healthcare, said next year is
shaping up to be "a critical and difficult year" for the NHS.

Mr. Farrar, as cited by the FT, said that there was "worrying
evidence" that waiting times for treatment were growing and some
hospitals and other organizations were getting "much more close
to the financial edge."

If, as seemed likely, the health service was now facing a decade
of tight funding "this isn't the greatest of starts," added
Mr. Farrar, whose new year message on Wednesday warns of the
dangers of "distraction," caused in part by the structural
changes resulting from the NHS reforms, according to the FT.

"We can't afford to drift backwards into the year," he told the
FT.  There were, he said, "only three possible outcomes" to the
financial challenge facing the health service.


* UK: South West Business Insolvency Up 26% in November 2011
------------------------------------------------------------
Insider Media Limited reports that new data from Experian showed
there has been a 26% rise in South West business insolvency rates
since last year.

According to Insider Media, a new study from the data analyst
reveals that 121 businesses in the region went bust in
November 2011.  This represents 0.08 per cent of the total
businesses in the region, up from 0.06 per cent a year earlier,
the report notes.

Insider Media quotes Max Firth, managing director for Experian's
Business Information Services division in the UK & Ireland, as
saying that, "The latest insolvency index highlights that some
businesses continue to need to assess the risk strategies they
have in place very carefully.

"They need first to understand the risks they are exposed to and
then protect themselves from debt that could be detrimental to
their business on a regular ongoing basis," Mr. Firth, as cited
by Insider Media, said.

UK-wide, of the five biggest industry sectors only property
recorded a fall in insolvency rates.  Business services, IT,
leisure/hotels and building/construction all experienced a higher
rate of insolvencies, the report notes.


* UK: Severe Weather May Send Thousands of Firms Into Insolvency
----------------------------------------------------------------
The Manchester Evening News reports that a new research said that
a cold snap like that seen last winter could force thousands of
firms in the northwest out of business.

The report relates that a study by insolvency trade body R3 said
that a bout of severe weather would force one in eight companies
across the north to seek access to additional funding, while one
in 25 said they could be tipped into insolvency.

Just over half said their profits would be hit, while 58% said
productivity would be hit by staff unable to get to work,
according to the report.

The Manchester Evening notes that firms with the biggest concerns
included those in the distribution and retail sectors.

"A cold spell, coming on top of the quarter day at the end of
December when rent is due, could put many out of business," the
report quotes Jeremy Oddie, north west regional chairman of R3,
as saying.

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


* BOOK REVIEW: Ralph H. Kilmann's Beyond the Quick Fix
------------------------------------------------------
Author: Ralph H. Kilmann
Publisher: Beard Books
Hardcover: 320 pages
Listprice: $34.95
Review by Henry Berry

Every few years, a new approach is offered for unleashing the
full potential of organized efforts.  These are the quick fixes
to which the title of this book refers.  The jargon of the quick
fix is familiar to any businessperson: decentralization, human
resources, restructuring, mission statement, corporate strategy,
corporate culture, and so on.  These terms are all limited in
scope or objective, and some are even irrelevant or misconceived
with regard to the overall well-being and purpose of a
corporation.

With his extensive experience as a corporate consultant, author
of numerous articles, and professor in business studies, Kilmann
recognizes that each new idea for optimum performance and results
is germane to some area of a corporation.  However, he also
recognizes that each new idea inevitably falls short in bringing
positive change -- that is, a change that is spread throughout
the corporation and is lasting.  At best, when a corporation
relies on an alluring, and sometimes little more than
fashionable, idea, it is a wasteful distraction.  At worst, it
can skew a corporate organization and its operations, thereby
allowing the corporation's true problems or weaknesses to grow
until they become ruinous.  As the author puts it, "Essentially,
it is not the single approach of culture, strategy, or
restructuring that is inherently ineffective.  Rather, each is
ineffective only if it is applied by itself -- as a "quick fix"."

Kilmann tells corporate leaders how to break the cycle of
embracing a quick fix, discarding it after it proves ineffective,
and then turning to a newer and ostensibly better quick fix that
soon proves to be equally ineffective.  For a corporation to
break this self-defeating cycle, the author offers a five-track
program. The five tracks, or elements, of this program are
corporate culture, management skills, team-building, strategy-
structure, and reward system.  These elements are interrelated.
The virtue of Kilmann's multidimensional five-track program is
that it addresses a corporation in its entirety, not simply parts
of it.

Kilmann's five tracks offer structural and operational aspects of
a corporation that executives and managers will find familiar in
their day-to-day leadership and strategic thinking.  Thus, the
author does not introduce any unfamiliar or radical perspectives
or ideas, but rather advises readers on how to get all parts of a
corporation involved in productive change by integrating the five
tracks into "a carefully designed sequence of action: one by one,
each track sets the stage for the next track."  Kilmann does
more, though, than bring all significant features of a modern
corporation together in a five-track program and demonstrate the
interrelation of its elements.  His singularly pertinent and
useful contribution is providing a sequence of steps to be
implemented with respect to each track so that a corporation
progresses toward its goals in an integrated way.

Beyond the Quick Fix is a manual for implementing and evaluating
the progress of a five-track program for corporate success.  The
book should be read by any corporate leader desiring to bring
change to his or her organization.

Ralph H. Kilmann has been connected with the University of
Pittsburgh for 30 years.  For a time, he was its George H. Love
Professor of Organization and Management at its Katz Graduate
School of Business.  Additionally, he is president of a firm
specializing in quantum transformations.


                            *********

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 * * *