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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

          Wednesday, February 8, 2012, Vol. 13, No. 28

                            Headlines



F R A N C E

PAPETERIE DU DOUBS: In Receivership, Halts Production


G R E E C E

* GREECE: PM Asks Finance Ministry to Prepare Default Report


H U N G A R Y

MALEV ZRT: Probe Into Alleged Mismanagement Kept Secret
MALEV ZRT: Court Places Firm Into Extraordinary Receivership


I T A L Y

FONDIARIA-SAI SPA: Creditors May Opt for Debt-for-Equity Swap


K A Z A K H S T A N

BMB MUNAI: Daymon Smith Resigns as Director
BTA BANK: Steering Committee for Debt Restructuring Appointed
KAZAKH MORTGAGE: Moody's Lowers Rating on Class B Notes to 'B1'


L U X E M B O U R G

GSC EUROPEAN: S&P Raises Rating on Class E Notes to 'CCC+ (sf)'
INTELSAT SA: Forecasts US$775MM-US$850MM in Capital Expenditures
MATTERHORN MOBILE: S&P Assigns Prelim. 'B+' Corp. Credit Rating
MINERVA LUXEMBURGO: S&P Assigns 'B' Rating to US$300MM Sr. Notes
MOSSI & GHISOLFI: Moody's Assigns (P)B2 Rating to US$500MM Bond


N E T H E R L A N D S

BOYNE VALLEY: S&P Raises Rating on Class E Notes to 'B+'
MARCO POLO: Judge Says Payments to Attorneys Could Sink Ch. 11
ORYX EUROPEAN: S&P Raises Rating on Class D Notes to 'BB+'


P O R T U G A L

ENERGIAS DE PORTUGAL: S&P Cuts Corp. Credit Ratings to 'BB+/B'


R O M A N I A

STAFF COLLECTION: Bucharest Court Admits Insolvency Process


S P A I N

AYT CGH: Moody's Cuts Rating on EUR11-Mil. Class C Notes to 'Ba3'
CAJAMAR: Moody's Assigns Rating to Public-Sector Covered Bonds
UCI 15: S&P Affirms Ratings on Three Note Classes at 'D(sf)'
* SPAIN: Launches Another Round of Bank Restructuring


S W E D E N

VERISURE HOLDING: Moody's Assigns 'B3' Corporate Family Rating


U N I T E D   K I N G D O M

GAVIN WARD: Goes Into Administration on Falling Revenue
INEOS FINANCE: S&P Assigns 'B' Rating to $850-Mil. Senior Notes
INEOS GROUP: Moody's Assigns '(P)Ba3' Rating to Sr. Sec. Notes
MG ROVER: UK Watchdog Goes After Deloitte for Work
MIJAH HOTEL: Bosses Deny Administration Rumors

OAKWORTH JOINERY: In Administration, 170 Jobs at Risk
PLASTIC SORTING: Goes Into Administration, Cuts 27 Jobs
REVOLVER PR: Set for Administration, Enters Voluntary Liquidation
ROADCHEF FINANCE: S&P Cuts Rating on Class B Notes to 'CCC+'


X X X X X X X X

* EUROPE: Corporate Default Expected to Rise This Year


                            *********


===========
F R A N C E
===========


PAPETERIE DU DOUBS: In Receivership, Halts Production
-----------------------------------------------------
euwid-paper.com reports that Papeterie du Doubs has been placed
in receivership.

The company's deputy managing director Eric Gravier told EUWID
that the commercial court of Besan‡on started proceedings on
January 30, and had stipulated a six-month observation period,
according to euwid-paper.com.

Furthermore, the report notes, the company has halted production
at its mill located in Novillars in eastern France on January 27
due to a lack of raw material.

The report relays that Mr. Gravier said the company planned to
resume operations on February 6.

Papeterie du Doubs is a French manufacturer of packaging papers.
Papeterie du Doubs produces testliner and corrugating medium with
an annual capacity of around 80,000 tons.


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


* GREECE: PM Asks Finance Ministry to Prepare Default Report
------------------------------------------------------------
Paul Tugwell at Bloomberg News reports that Panos Beglitis,
spokesman for the socialist Pasok Party, said Greece's Prime
Minister Lucas Papademos requested the country's Finance Ministry
to prepare a document on the implications of a Greek default.

The Prime Minister on Sunday told the leaders of the three
political parties supporting his interim government that he asked
the Ministry "to record accurately and realistically all the
consequences of the country's exit from the euro zone," Bloomberg
quotes Mr. Beglitis as saying on Monday in an interview with
Radio 9.

According to Bloomberg, Mr. Beglitis said "It's an important
initiative because the Greek people should know exactly what
consequences a bankruptcy and euro zone exit would have and
thereby take their responsibility."


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


MALEV ZRT: Probe Into Alleged Mismanagement Kept Secret
-------------------------------------------------------
MTI-Econews reports that tabloid Blikk said on Tuesday
investigations into Malev Zrt. started a year ago but details of
the investigation have been classified state secret.

According to MTI, the Budapest Chief Prosecutor's Office has been
investigating alleged mismanagement of billions of forints and,
unnamed sources told the paper that former managing director
Peter Leonov and former Russian owner Boris Abramovich have been
among those interviewed in connection with Malev.

Mr. Leonov's lawyer Lajos Papp told Blikk that the case had been
classified and no details could be made public, MTI notes.
Mr. Leonov has been heard as a witness and he said he had no
responsibility for the collapse of the company, MTI relates.
According to Blikk's information, the investigation has been
classified because several politicians are implicated who are
still protected by immunity, MTI states.

Irrespective of the investigation by the Budapest Chief
Prosecutor's Office, Hungary's government commissioner Gyula
Budai has filed five complaints with the Central Prosecutor's
Office over the sale and repurchase of Malev, MTI discloses.  The
complaints affect its privatization in 2007 when the company was
bought by AirBridge, in which Mr. Abramovich had a large share,
certain guarantees offered to the carrier and its
re-nationalization, according to MTI.

As reported by the Troubled Company Reporter-Europe on Feb. 6,
2012, Bloomberg News related that Malev ceased flying after the
government withdrew financing.  Malev, which has debts of
HUF60 billion (US$270 million), halted flights at 6:00 a.m. local
time on Friday, Feb. 3, Bloomberg disclosed.

Malev Zrt. is the flag carrier and principal airline of Hungary.


MALEV ZRT: Court Places Firm Into Extraordinary Receivership
------------------------------------------------------------
MTI ECONEWS reports that Budapest National Development Ministry
said the Municipal Court placed troubled national carrier Malev
ZRT into extraordinary receivership.

The ministry noted that under a government decree issued, Malev
was declared a "business of prime strategic significance",
allowing the special procedure that aims to "protect Malev as
well as help sustain its continued operation," according to MTI
ECONEWS.

The report notes that the ministry said Malev was placed under
the receivership of the wholly state-owned Credit Institutional
Liquidator Nonprofit, without whose consent the airline may not
made any further payments.  The receiver's consent to make
payments will depend on whether it deems them necessary to for
Malev's continued operation, it added, MTI ECONEWS relays.

The court also ordered a moratorium on all procedures seeking
claims against receivables from Malev, the ministry said, the
report discloses.

The decision prohibits Malev's business partners from breaking
their contracts with the airline and automatically extends the
carrier's permits, the ministry added, MTI ECONEWS notes.

Malev's board and management stands ready to support the work of
the receiver and will produce a liquidity plan by the weekend,
the ministry said, the report adds.


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


FONDIARIA-SAI SPA: Creditors May Opt for Debt-for-Equity Swap
-------------------------------------------------------------
Sonia Sirletti at Bloomberg News reports that Il Sole 24 Ore said
Fondiaria-SAI SpA and Premafin Finanziaria SpA's bank creditors
may convert loans into equity as part of a plan approved last
month to merge the companies with Unipol Gruppo Finanziario SpA.

According to Bloomberg, the newspaper reported that banks,
including UniCredit SpA and Mediobanca SpA, may swap as much as
EUR200 million (US$263 million) of Premafin's total debt of
EUR340 million.

Il Sole said that Mediobanca may also convert part of the
EUR1 billion of loans given to Fondiaria.

Fondiaria SAI SpA is an Italian insurer.

                           *     *    *

As reported by the Troubled Company Reporter-Europe on Feb. 6,
2012, Standard & Poor's Ratings Services commented on its
CreditWatch placement on Italian insurer Fondiaria-SAI SpA, its
"core" subsidiary Milano Assicurazioni SpA, and its "non-
strategically important" subsidiary SIAT-Societa Italiana
Assicurazioni e Riassicurazioni pA (SIAT). "The 'B' long-term
counterparty credit and insurer financial strength ratings on
Fondiaria-SAI, Milano Assicurazioni, and SIAT remain on
CreditWatch developing, where we originally placed them on
Dec. 29, 2011," S&P said.


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


BMB MUNAI: Daymon Smith Resigns as Director
-------------------------------------------
At a meeting of the board of directors of BMB Munai, Inc., on
Jan. 27, 2012, the board of directors accepted the resignation of
Daymon M. Smith as a director of the Company and as a member of
the Company's Audit Committee and Nominating and Governance
Committee.  To the Company's knowledge, Dr. Smith's resignation
was not the result of any disagreement with the Company on any
matter relating to the Company's operations, policies or
practices.

                          About BMB Munai

Based in Almaty, Kazakhstan, BMB Munai, Inc., is a Nevada
corporation that originally incorporated in the State of Utah in
1981.  Since 2003, its business activities have focused on oil
and natural gas exploration and production in the Republic of
Kazakhstan through its wholly-owned operating subsidiary Emir Oil
LLP.  Emir Oil holds an exploration contract that allows the
Company to conduct exploration drilling and oil production in the
Mangistau Province in the southwestern region of Kazakhstan until
January 2013.  The exploration territory of its contract area is
approximately 850 square kilometers and is comprised of three
areas, referred to herein as the ADE Block, the Southeast Block
and the Northwest Block.

The Company realized a loss from continuing operations of
US$15.1 million during fiscal year 2011 compared to US$10.7
million during fiscal year 2010.  This 41% increase in loss from
continuing operations was primarily attributable to increased
general and administrative and interest expense and the foreign
exchange loss of US$415,803 incurred during fiscal year 2011.

The Company's balance sheet at Sept. 30, 2011, showed
US$88.38 million in total assets, US$8.31 million in total
liabilities, all current, and US$80.06 million in total
shareholders' equity.

Hansen, Barnett & Maxwell, P.C., in Salt Lake City, said that as
a result of the pending sale of Emir Oil LLP, BMB Munai will have
no continuing operations that result in positive cash flow, which
raise substantial doubt about its ability to continue as a going
concern.

                        Bankruptcy Warning

The Company has disclosed that if it does not complete the sale,
it will not have sufficient funds to retire the restructured
Senior Notes when they become due.  "In this event, we would
likely be required to consider liquidation alternatives,
including the liquidation of our business under bankruptcy
protection," the Company said.


BTA BANK: Steering Committee for Debt Restructuring Appointed
-------------------------------------------------------------
Patricia Kuo at Bloomberg News reports that BTA Bank said a group
of investors were appointed to represent its creditors for a debt
restructuring.

According to Bloomberg, BTA said in a statement on Monday that
members of the steering committee include Ashmore Investment
Management Ltd., Asian Development Bank, D.E. Shaw & Co., BNP
Paribas SA's FFTW U.K. Ltd., Gramercy Funds Management LLC,
JPMorgan Chase & Co., Nomura Holdings Inc., VR Capital Group Ltd.

Bloomberg relates that the statement said a seat on the committee
is reserved for the Swedish Export Credits Guarantee Board and
another one for a representative of trade finance lenders.

The statement said that BTA will meet the committee members in
London on Feb. 8, Bloomberg notes.

Samruk-Kazyna, a Kazak sovereign wealth fund, took over BTA in
February 2009, two months before the central Asian nation's
largest lender at the time defaulted on US$12 billion of debt,
Bloomberg recounts.

                         About BTA Bank

Headquartered in Almaty, Kazakhstan, BTA reported total assets
and total equity deficit of US$12.2 billion and US$1.48 billion,
respectively, at end-H1 2011, according to the bank's IFRS
financial statements.  BTA's net loss for H1 2011 amounted to
US$701 million.

                       *     *     *

As reported by the Troubled Company Reporter-Europe on Jan. 25,
2012, Fitch Ratings downgraded Kazakhstan-based BTA Bank's (BTA)
Long-term Issuer Default Rating (IDR) to 'RD' from 'C'.  The
downgrade reflects the fact that the bank has committed an
uncured expiry on January 18, 2012 of a grace period allowed to
pay a US$165 million coupon.  The bank confirmed its intention to
seek restructuring of its obligations under senior unsecured and
subordinated bonds with the aggregate value of about US$3.5
billion.


KAZAKH MORTGAGE: Moody's Lowers Rating on Class B Notes to 'B1'
---------------------------------------------------------------
Moody's has downgraded the ratings of the notes issued by Kazakh
Mortgage Backed Securities 2007-1:

   -- US$123M A Notes, Downgraded to Ba3 (sf); previously on Dec
      13, 2011 Ba2 (sf) Placed Under Review for Possible
      Downgrade

   -- US$11.3M B Notes, Downgraded to B1 (sf); previously on Dec
      13, 2011 Ba3 (sf) Placed Under Review for Possible
      Downgrade

   -- US$7.1M C Notes, Downgraded to B2 (sf); previously on Dec
      13, 2011 B1 (sf) Placed Under Review for Possible Downgrade

Ratings Rationale

This rating action comes as a result of the removal of the
indexation of the mortgages backing this transaction to US Dollar
(US$) and the redenomination of the current outstanding balances
of these mortgages into Tenge at the exchange rates in effect at
the date of disbursement of each mortgage. The notes of the
transaction are denominated in US$ and since the Tenge to US$
exchange rate has increased by approximately 12% on average since
the mortgages have been granted, this redenomination has resulted
in an immediate 12% loss for the transaction. The transaction is
also exposed to further losses in case of further depreciation of
Tenge since the borrowers will now be making payments in Tenge.
Therefore, the Tenge to US$ exchange rate risk is unhedged in the
transaction.

These changes come as a result of a judgment issued by the
Supreme Court of Kazakhstan stating that the indexation of
mortgage balances to the US$ should not be allowed in the Kazakh
mortgage market. This has caused the servicer of the transaction,
BTA Ipoteka, to remove indexation not only from the mortgages
securitized in this transaction, but also from its own mortgage
book.

The impact of the redenomination is mitigated by the existence of
the overcollaterization in the portfolio, which has reduced from
approximately 22% to 11.6% as a result of the redenomination.
Therefore, the portfolio balance is still higher than the balance
of the outstanding notes and the remaining overcollaterization
can be used to absorb further losses as a result of a
depreciation of Tenge. The transaction further benefits from the
reserve fund in the amount of US$3.54 million (18.9% of the notes
outstanding), which is held in the issuer's account with the
Royal Bank of Scotland and is currently non-amortizing due to
breach of amortization trigger (loss of Ba2 by the parent bank of
the originator). Overall, the credit enhancement under the Class
A notes is 52.1%.

Currently, the notes in the transaction are amortizing pro-rata;
however, the amortization will turn to sequential once the
transaction reaches 10% of its initial size (the transaction is
currently at 13.2% of its initial size).

In its analysis, Moody's has reviewed various scenarios with
regards to the amount of depreciation of Tenge and its impact on
the notes. For example, should Tenge suffer a 50% depreciation
after further six months of pro-rata note repayment, Class C
would be expected to suffer approximately 89% loss, Class B would
be expected to suffer approximately 37% loss, and Class A would
be expected to be fully repaid. However, Moody's considers the
probability of such a large depreciation of Tenge to be
relatively low.

Moody's also assessed the extent of any additional losses which
could be incurred by the transaction as a result of borrowers
requesting refunds for the payments already made on the indexed
basis. Currently, the servicer anticipates that the borrowers may
be entitled to the compensation of any principal and interest
paid on the indexed basis during the period between March 2011
(when the initial law prohibiting indexation was passed) and
December 2011 (when indexation was removed from the pool). In
that period, Tenge has depreciated by approximately 3%, which may
need to be returned to the borrowers together with any interest
accrued on the principal amounts increased by indexation during
that time. Any future actions which could affect the level of
compensation could negatively affect the ratings of the
transaction further.

The methodologies used in this rating were Moody's Approach to
Rating RMBS in Emerging Securitisation Markets -- EMEA published
in June 2007, 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.

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.

Moody's will continue to monitor the performance of this RMBS
transaction.

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 Inverse Normal distribution
assumed for the portfolio default rate. On the recovery side
Moody's assumes a stochastic (normal) recovery distribution which
is correlated to the default distribution. 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.

Moody's also reviewed several scenarios assuming significant
depreciation of Tenge against the US$ and additional losses
incurred by the portfolio as described above.

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


===================
L U X E M B O U R G
===================


GSC EUROPEAN: S&P Raises Rating on Class E Notes to 'CCC+ (sf)'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
all classes of notes in GSC European CDO I-R S.A.

"The rating actions follow our assessment of the transaction's
performance and our application of our relevant criteria for
transactions of this type," S&P said.

"For our review of the transaction's performance, we used data
from the trustee report dated Dec. 5, 2011, in addition to our
cash flow analysis. We have taken into account recent
developments in the transaction and have applied our 2010
counterparty criteria, as well as our cash flow criteria," S&P
said.

"From our analysis, we have observed a decrease in the proportion
of assets that we consider to be rated in the 'CCC' category
('CCC+', 'CCC', and 'CCC-') currently 10.38% of the aggregate
performing balance, and in the proportion of defaulted assets
(rated 'CC', 'SD' [selective default], and 'D') in the portfolio
since we last reviewed the transaction," S&P said.

"Since our last review, we have also noted an increase in the
weighted-average spread earned on GSC European CDO I-R's
collateral pool, and in the par coverage test results. However,
the class D and E par coverage tests continue to perform below
the minimum levels," S&P said.

"We subjected the capital structure to a cash flow analysis to
determine the break-even default rate. In our analysis, we used
the reported portfolio balance that we consider to be performing,
the principal cash balance, the current weighted-average spread,
and the weighted-average recovery rates that we considered to be
appropriate. We incorporated various cash flow stress scenarios
using various default patterns, levels, and timings for each
liability rating category, in conjunction with different interest
rate stress scenarios," S&P said.

"Taking into account our credit and cash flow analyses and our
2010 counterparty criteria, we consider the credit enhancement
available to all classes of notes that we rate to be commensurate
with higher rating levels. We have therefore raised our ratings
on these classes of notes," S&P said.

"None of the classes was constrained by the application of the
largest obligor default test, a supplemental stress test we
introduced in our 2009 criteria update for corporate
collateralized debt obligations (CDOs). Our rating on the class D
notes was constrained by this test during our March 2010
analysis," S&P said.

"Credit Suisse AG (A+/Negative/A-1) and Citibank N.A.
(A/Negative/A-1) are the swap counterparties in GSC European CDO
I-R. We have analyzed the counterparties' exposure to the
transaction, and we consider that this is sufficiently limited to
not affect our current ratings on the class A1, A2A, A2B, and A3
notes if the counterparties failed to perform," S&P said.

GSC European CDO I-R is a cash flow collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.

             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

GSC European CDO I-R S.A.
EUR371 Million Floating- and Fixed-Rate Notes

Ratings Raised

A1          AA+ (sf)           A+ (sf)
A2A         AAA (sf)           AA+ (sf)
A2B         AA+ (sf)           A+ (sf)
A3          AA+ (sf)           A+ (sf)
B           A+ (sf)            BBB+ (sf)
C1          BBB- (sf)          BB+ (sf)
C2          BBB- (sf)          BB+ (sf)
D           B+ (sf)            CCC+ (sf)
E           CCC+ (sf)          CCC- (sf)


INTELSAT SA: Forecasts US$775MM-US$850MM in Capital Expenditures
----------------------------------------------------------------
Intelsat S.A. announced its annual capital expenditure guidance
for the three fiscal years beginning Jan. 1, 2012, and ending
Dec. 31, 2014.

At present, the Company is constructing eight satellites, six of
which are expected to be launched during the Guidance Period.  In
addition to these programs, during this period the Company
expects to procure two additional satellites to replace currently
existing satellites, as compared to the Company's previous
guidance of procuring one additional replacement satellite during
this period. By the conclusion of the Guidance Period, the
Company's total station-kept transponder count is expected to
increase modestly from levels at year end 2011.

Capital expenditures for 2011 totaled US$798 million, excluding
the New Dawn satellite launched in April 2011.  The Company
expects its 2012 total capital expenditures to range from US$775
million to US$850 million.  Capital expenditures are currently
expected to range from $550 million to US$625 million in 2013 and
US$525 million to US$600 million in 2014.  The Company's capital
expenditures guidance includes capitalized interest.  The annual
classification of capital expenditure payments could be impacted
by the timing of achievement of satellite manufacturing and
launch contract milestones.

During the Guidance Period, the Company expects to receive
significant customer prepayments under its existing customer
service contracts.  The Company also anticipates that prepayments
will be received under customer contracts to be signed in the
future.  Prepayments received in 2011 totaled US$334 million.
Prepayments are currently expected to range from US$150 million
to US$200 million in 2012, all under existing customer contracts.
Prepayments are currently expected to range from US$150 million
to US$200 million in 2013 and US$100 million to US$150 million in
2014, with the majority of these prepayment amounts coming from
existing customer contracts.

                          About Intelsat

Intelsat S.A., formerly Intelsat, Ltd., provides fixed-satellite
communications services worldwide through a global communications
network of 54 satellites in orbit as of Dec. 31, 2009, and ground
facilities related to the satellite operations and control, and
teleport services.  It had US$2.5 billion in revenue in 2009.

Washington D.C.-based Intelsat Corporation, formerly known as
PanAmSat Corporation, is a fully integrated subsidiary of
Intelsat S.A., its indirect parent.  Intelsat Corp. had US$7.70
billion in assets against US$4.86 billion in debts as of Dec. 31,
2010.

The Company reported a net loss of US$432.35 million on
US$1.93 billion of revenue for the nine months ended Sept. 30,
2011, compared with a net loss of US$392.69 million on US$1.90
billion of revenue for the same period during the prior year.

The Company reported a net loss of US$507.77 million on
US$2.54 billion of revenue for the year ended Dec. 31, 2010,
compared with a net loss of US$782.06 million on US$2.51 billion
of revenue during the prior year.

The Company's balance sheet at Sept. 30, 2011, showed
US$17.59 billion in total assets, US$18.28 billion in total
liabilities, US$698.94 million total Intelsat S.A. shareholders'
deficit, and US$1.90 million in noncontrolling interest.

                          *     *     *

Luxembourg-based Intelsat S.A. carries 'B' issuer credit ratings
from Standard & Poor's.  It has 'Caa1' corporate family and
probability of default ratings from Moody's Investors Service.


MATTERHORN MOBILE: S&P Assigns Prelim. 'B+' Corp. Credit Rating
---------------------------------------------------------------
On Feb. 1, 2012, Standard & Poor's Ratings Services said it
assigned its preliminary 'B+' long-term corporate credit rating
to Luxembourg-based Matterhorn Mobile Holdings S.A., the ultimate
parent of Orange Communications S.A., the third-largest wireless
network operator by subscriber in Switzerland. The outlook is
stable.

"At the same time, we assigned a preliminary recovery rating of
'2' and preliminary issue rating of 'BB-' to the secured bank
loans and the secured bond to be issued by Matterhorn Mobile
S.A., a subsidiary of Matterhorn Mobile Holdings S.A., which
would guarantee the securities. We also assign a preliminary
recovery rating of '6' and preliminary issue rating of 'B-' to
the senior bond to be issued by Matterhorn Mobile Holdings S.A.,"
S&P said.

"We expect to convert the preliminary ratings into definitive
ratings when and upon the completion of the Swiss franc (CHF) 1.9
billion leveraged buyout (LBO) of Orange Communications S.A. by
Matterhorn Mobile S.A., a company indirectly owned by funds
advised by APAX Partners LLP. Completion is planned for early May
2012 if all conditions are met, including regulatory approvals
and spectrum-related conditions," S&P said.

"The ratings on Matterhorn Mobile Holdings S.A. are constrained,
in Standard & Poor's view, by Matterhorn Mobile S.A.'s
'aggressive' financial risk profile, following its CHF1.9 billion
LBO from France Telecom, and supported by our assessment of a
"fair" business risk profile," S&P said.

"The stable outlook reflects our view that the company's
financial risk profile will remain in line with the rating. We
expect that both revenues and EBITDA will grow slightly, likely
benefiting from supportive local economic and industry
conditions, the execution of the company's recent strategic
orientations, and active cost optimization," S&P said.

"We could raise the ratings by one notch if leverage remains
below 4.5x and free cash flow meaningfully strengthens close to
CHF80 million. This assumes that operating performance would
continue to support our 'fair' business risk profile assessment,"
S&P said.

"We could lower the ratings if leverage shoots up to 5.5x, but we
consider this to be a remote possibility. We believe this would
likely occur if the business risk profile weakened significantly
or as a result of a recapitalization," S&P said.


MINERVA LUXEMBURGO: S&P Assigns 'B' Rating to US$300MM Sr. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' rating to
Minerva Luxemburgo S.A.'s proposed senior unsecured notes of up
to US$300 million. The parent company, Brazil-based beef
processor Minerva S.A. (Minerva; B/Positive/--), unconditionally
and irrevocably guarantees the notes.

"Minerva intends to use proceeds to pay down existing short-term
debt. The notes will rank equally with the other Minerva
subsidiary's senior unsecured debt (which Minerva guarantees as
well) and pari passu with Minerva's existing senior unsecured
notes. The issue rating on these proposed notes is the same
as the corporate credit rating on Minerva, because, in our
opinion, subordination to other secured debt is not significant.
Secured debt amounts to a small fraction of Minerva's adjusted
total assets," S&P said.

"The corporate credit rating on Minerva reflects its 'weak'
business profile (as our criteria define the term), given the
firm's relatively small size, geographic and product
concentration, and highly commoditized product mix. We assess
Minerva's financial risk profile as 'highly leveraged,' given
that significant portion of its debt has resulted from capital
expenditures to expand capacity in the past few years. For the
complete credit rationale, please see 'Summary: Minerva S.A.,'
published Nov. 29, 2011," S&P said.

Ratings List

Rating Assigned

Minerva Luxemburgo S.A.
  US$300 million sr unsec notes*           B

*Guaranteed by Minerva S.A.


MOSSI & GHISOLFI: Moody's Assigns (P)B2 Rating to US$500MM Bond
---------------------------------------------------------------
Moody's Investors Service has assigned a (P)B2- LGD4(53) ratings
to the proposed US$500 million senior secured guaranteed notes to
be issued by M&G Finance Corporation, a subsidiary of Mossi &
Ghisolfi International, rated B2. The outlook on all ratings was
changed to negative.

The proceeds of the proposed Notes will substantially fund the
company's US$750 million capital investment program associated
with the construction of a new PET plant, and a co-sited PTA
(Purified Terephthalic Acid) plant in Corpus Christi, Texas, US,
expected to come on stream in 2014.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect the rating agency's
preliminary credit opinion regarding the transaction only. Upon a
conclusive review of the final documentation including a mature
draft term sheet for the contract with Chemtex International, the
related party contractor that will execute the investment
program, Moody's will endeavor to assign a definitive rating to
the Notes. A definitive rating may differ from a provisional
rating.

Ratings Rationale

The B2 CFR reflects Moody's recognition of the Company's well
established niche market position in North and Latin America and
the positive long-term development in the business profile that
will be underpinned by the proposed investment in the US.

Nevertheless, the rating remains constrained by (i) the
relatively modest size of M&G compared with most of its rated
chemical peers; (ii) its lack of vertical integration, pending
the proposed investment in the PTA capacity in the US; (iii) its
medium to low historical profitability and (iv) the relatively
fragile debt capital structure, currently characterized by a
large exposure to short term bank facilities in Brazil and Mexico
for which the company is seeking rollover agreements on an annual
basis. The rating also takes into account the relatively weak
financial performance and credit metrics recorded by M&G in 2009,
as a result of the global financial crisis, as well as the recent
improvements achieved in 2010 and 2011. Moody's considers M&G's
financial profile to be vulnerable in a downside scenario, due to
(i) the company's relatively high historical PET margin
volatility, determined by the exogenous volatility of PET and key
feedstock prices correlated to oil-price movements; and (ii) its
relatively high level of debt, both in absolute terms and with
reference to EBITDA (as adjusted by Moody's).

As such, the B2 CFR reflects a mid-chemical-cycle positioning for
a chemical player with an adequate business profile when compared
to direct competitors in the PET industry, but still vulnerable
to major risks related to the cyclicality and volatility of its
reference niche market.

Moody's notes elevated financial risks associated with the
proposed US$750 million investment, given the increased leverage
expected and the fact that the project will start providing the
expected benefits only after 2014, whilst high capital
expenditures to be incurred before then will imply negative free
cash flows for the next few years. The B2 CFR therefore assumes a
timely completion of the CAPEX plan and a prudent management of
the execution risks, to be supported by (i) an engineering turn-
key contract with an affiliate, Chemtex International, that will
be conducted on an arm-length basis and will offer the customary
level of protection to M&G for any under-performance attributable
to the contractor; (ii) the use of the majority of the proceeds
of the Notes to part fund the investment in the new plant, with
exception of EUR 45 million debt repayment to ultimate parent M&G
Finanziaria Srl, outside the restricted group, as covenanted in
the indentures.

Moody's notes that the investment plan is not fully funded and
that the construction of the new facilities in the US remains
subject to the successful raising of funding as well as the usual
type of authorizations and permits needed for a chemical plant of
this nature.

The B2 rating therefore has limited headroom to accommodate a
pronounced volatility in the issuer's operating or financial
performance over the next 12-18 months, while the company is also
expected to generate negative FCF as a result of the investment.

Structural Considerations

The proposed Notes will be senior secured obligations of the
Issuer, guaranteed on senior unsecured basis by M&G and a number
of material operating subsidiaries in the US and Mexico,
representing in aggregate c. 69% of the Company's September 2011
consolidated LTM EBITDA and c. 58% of its total assets as of
September 2011. The Notes will also be guaranteed by the
Brazilian sub-holding. M&G will be the top holding entity of the
restricted group and will act as the parent guarantor.

The proposed notes will be secured on the first priority basis
against the company's existing US assets (PET plant at Apple
Grove, US) and, in the future, the new PET/PTA plant to be
constructed in Corpus Christi, Texas, US, over the next several
years. In the nine months ended September 30, 2011, the US
capacity represented 23% of the company's total capacity and the
US market c. 39% of its revenues.

Moody's notes that other key operating facilities in Mexico and
Brazil are pledged in support of existing secured obligations of
the group, that at the end of 3Q 2011 stood at EUR111 million in
Mexico and EUR136 million in Brazil. The company also has several
unsecured facilities outside of the US, amounting to nearly
EUR250 million at the end of 3Q 2011. In 2010, the Latin America
capacity represented 77% of the company's total capacity and c.
65% of its revenues.

The provisional (P) B2 rating assigned to the Notes reflects the
senior secured status of the instrument within the capital
structure, notwithstanding a degree of security deficiency
assumed for the duration of the build-out period in the US, and a
higher security coverage available to certain Latin American
lenders. The proposed Notes will be supported in first instance
by the US assets and cash flows of the group and will be
effectively subordinated in right of payment to the existing (and
future) senior debt secured by other assets not forming the
security package for the Notes, including, in particular, the
Brazilian operating subsidiaries, that do not guarantee the new
notes. The (P) B2 rating on the Notes is also supported by the
significant junior debt in the structure (EUR 246 million in
subordinated hybrid securities and accrued interests), that
supports the recovery rates on the new Notes.

Rating Outlook

The change of outlook to negative reflects Moody's concerns over
the elevated financial and execution risks associated with the
announced transaction and the significant investment plan for
2012-2014, that may result in a weaker credit profile of the
group in the next 12 to 18 months.

Rating sensitivities

Although unlikely in the near term, Moody's would consider a
rating upgrade as a result of a sustained improvement in EBITDA
margins sustainably above 10%; and return to strong positive Free
Cash Flow generation, leading to a Net Debt/EBITDA ratio
sustainably below 4x and FCF/Debt sustainably in the mid to high
single digits.

Moody's would consider downgrading the ratings if operating
performance deteriorated from its current levels, resulting in
(i) lower profitability, with the adjusted EBITDA margin
sustained below 10%; (ii) negative FCF generation (excluding the
CAPEX for the new project); (iii) a total Net Debt/EBITDA ratio
exceeding 5x on a sustained basis. Weaker liquidity position,
which may be also caused by tighter headroom under the financial
covenants, could also put the rating under pressure. Moody's also
notes that a change of the capital structure, resulting in a
material reduction in junior debt, would likely result in a
downgrade of the rating of the Notes.

Liquidity

At the end of 3Q 2011, M&G reported cash balances of EUR90
million (excluding EUR42 million of restricted cash). Prospective
of the US$500 million bond placement, the liquidity position will
be supported by a significant cash balance, as the company
expects to utilize the funds over the next 24-36 months. These
funds should be sufficient to cover cash outflows expected for
2012: including (i) c. EUR200 million in CAPEX; (ii) EUR114
million of scheduled debt repayments and bank waiver fees,
including EUR 45 million debt repayment to M&G Finanziaria Srl,
and several other legacy loans, and (iii) seasonal working
capital outflows. The liquidity is also supported by an
availability of c. EUR75 million, as of September 2011, under
senior unsecured facilities in Mexico and Brazil, some of which
requiring annual renewal.

Principal Methodology

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

Mossi&Ghisolfi International S.A. is one of the leading
international producers of PET, a thermoplastic polymer resin of
the polyester family used for packaging applications, especially
for the beverage, food and personal care industries. As a result
of an international expansion strategy begun in 2001, M&G has
become the world's second-largest producer of PET in terms of
installed capacity, and the largest producer in the combined
North and South American region. The company currently owns three
production sites, strategically located in the United States,
Brazil and Mexico. The sites have a total PET nominal capacity of
1,571 kilo metric tons per year. In 2010, M&G generated
consolidated revenues of EUR1.67 million and EBITDA of EUR156
million.


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


BOYNE VALLEY: S&P Raises Rating on Class E Notes to 'B+'
--------------------------------------------------------
Standard & Poor's Ratings Services raised its credit rating on
Boyne Valley B.V.'s class E notes. "At the same time, we affirmed
our ratings on the class A-1, A2-a, A2-b, B, C-1, C-2, D, and T
Combo notes," S&P said.

"The rating actions follow our performance review of the
transaction and the application of our 2010 counterparty
criteria," S&P said.

"Since our last review in April 2010, we have observed a positive
rating migration of the underlying portfolio. Defaulted assets
and 'CCC' rated assets have decreased to 1.9% from 5.1%, and to
2.56% from 14.4%," S&P said.

"At the same time, the credit enhancement available to each class
of notes has slightly decreased because the aggregate collateral
balance has dropped to EUR391 million from EUR400 million due to
losses in the underlying portfolio. Although the transaction has
not yet entered its amortization period (scheduled to begin on
Feb. 12, 2012), the class A2-a and A-1 notes have amortized by
approximately EUR3 million in order to cure the class E notes'
par value test, which was previously in breach. None of the other
classes have amortized and all coverage tests are currently in
compliance," S&P said.

"Positive factors in our analysis include the reduction of the
weighted-average life and the significant increase of the
weighted-average spread in the portfolio to 3.37% from 2.84%,
following the ongoing reinvestment of redemption proceeds into
assets that pay greater margins," 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. We used the portfolio balance that we consider to be
performing, the reported weighted-average spread, and the
weighted-average recovery rates that we consider 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," S&P said.

"Non-euro assets denominated in U.S. dollars, British pound
sterling, and Swedish Kroner account for about 14% of the
underlying portfolio. Credit Suisse International (A+/Negative/A-
1) and Morgan Stanley & Co. International PLC (A/Negative/A-1)
hedge the resulting foreign currency risk as swap counterparties
via perfect asset swaps. We have also stressed the transaction's
sensitivity to and reliance on the swap counterparties,
especially for senior classes of notes rated higher than the swap
counterparties by applying foreign exchange stresses to the
notional amount of non-euro assets. Our analysis showed that the
class A2-a (the most senior class), the class A-1, and the A2-b
notes could withstand a 'AAA' and a 'AA' stress under these
conditions," S&P said.

"Therefore, and in accordance with our analysis, we have raised
our rating on the class E notes to 'B+ (sf)', which we consider
to be commensurate with the current level of credit enhancement,
the portfolio credit quality, and the transaction's performance.
Our largest obligor test previously capped the rating at 'CCC+'
and the result was otherwise consistent with a 'B+ (sf)' rating,"
S&P said.

"We have also observed that the level of credit support available
to the class A-1, A-2a, A-2b, B, C-1, C-2, D, and T Combo notes
is commensurate with their current ratings. We have therefore
affirmed our ratings on these notes," S&P said.

"Boyne Valley is a cash flow collateralized loan obligation (CLO)
transaction backed primarily by leveraged loans to speculative-
grade corporate firms. Geographically, the portfolio is
concentrated in Germany, France, Spain, the Netherlands, and the
U.K., which together account for about 80% of the portfolio.
Boyne Valley closed in December 2005 and was initially managed by
AIB Capital Markets PLC, until April 2011, when GSO Capital
Partners International LLP took over as collateral manager," S&P
said.

             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

Boyne Valley B.V.
EUR419 Million Secured Floating-Rate and Subordinated Notes

Ratings Raised

E           B+ (sf)             CCC+ (sf)

Ratings Affirmed

A-1         AA+ (sf)
A-2a        AAA (sf)
A-2b        AA+ (sf)
B           AA- (sf)
C-1         BBB- (sf)
C-2         BBB- (sf)
D           BB+ (sf)
T Combo     BB+ (sf)


MARCO POLO: Judge Says Payments to Attorneys Could Sink Ch. 11
--------------------------------------------------------------
Hilary Russ at Bankruptcy Law360 reports that U.S. Bankruptcy
Judge James M. Peck on Wednesday approved fee applications for
Marco Polo Seatrade BV's attorneys, but not payment of the fees
themselves, saying that the payments could anger the shipping
company's lenders and derail the tenuous progress the Chapter 11
case has finally made.

Law360 relates that Judge Peck made the ruling in the fee
dispute, which dragged on for more than a month.

                         About Marco Polo

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

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

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

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

The cases are before Judge James M. Peck.  Evan D. Flaschen,
Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at
Bracewell & Giuliani LLP, serve as the Debtors' bankruptcy
counsel.  Kurtzman Carson Consultants LLC serves as notice and
claims agent.

The petition noted that the Debtors' assets and debt are both
more than US$100 million and less than US$500 million.

Tracy Hope Davis, United States Trustee for Region 2, appointed
three members to serve on the Official Committee of Unsecured
Creditors.  The Committee has retained Blank Rome LLP as its
attorney.

Secured lender Credit Agricole Corporate and Investment Bank is
represented by Alfred E. Yudes, Jr., Esq., and Jane Freeberg
Sarma, Esq., at Watson, Farley & Williams (New York) LLP.


ORYX EUROPEAN: S&P Raises Rating on Class D Notes to 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
ORYX European CLO B.V.'s class B, C, and D notes. "At the same
time, we affirmed our rating on the class A notes," S&P said.

"The rating actions follow our assessment of the transaction's
performance and our application of all relevant criteria for
rating corporate collateralized debt obligations (CDOs)," S&P
said.

"Since our last review in April 2010, the level of credit
enhancement has improved and higher spreads are being earned on
the assets," S&P said.

"We 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 reported portfolio balance,
weighted-average spread, and weighted-average recovery rates that
we consider to be appropriate. We incorporated various cash flow
stress scenarios using alternative default patterns, levels, and
timings for each liability rating category (i.e., 'AAA', 'AA',
and 'BBB' ratings), in conjunction with different interest rate
stress scenarios," S&P said.

"We have applied our 2010 counterparty criteria and, in our view,
the swap agreement does not entirely reflect these criteria.
Hence the maximum potential rating under our criteria is not
higher that the issuer credit rating (ICR) on the counterparty
plus one notch. We have therefore conducted our analysis taking
into account the transaction's exposure to the swap counterparty
and the potential impact if the swap did not perform. The cash
flow stresses, assuming the swap counterparty performs, support a
higher rating on the class A notes. However, under scenarios
where we give no credit to the swap counterparty, the class A
notes are not able to achieve a rating higher than 'AA (sf)'.
Therefore, we have affirmed our 'AA (sf)' rating on the class A
notes. The other classes are not rated higher than the long-term
ICR on the swap counterparty plus one notch, so no additional
analysis was required," S&P said.

"We have also applied the largest obligor default test, a
supplemental stress test that we introduced as part of our
criteria update, and the largest industry default test, another
of our supplemental stress tests. However, none of the ratings is
constrained by the supplemental stress tests," S&P said.

"Considering all of these factors, we have raised our ratings on
the class B, C, and D notes because our analysis indicates that
the credit enhancement available to each class is commensurate
with higher ratings than previously assigned," S&P said.

ORYX European CLO is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.

               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

ORYX European CLO B.V.
EUR410 Million Senior and Subordinated Deferrable Floating-Rate
Notes

Ratings Raised

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

Rating Affirmed

A            AA (sf)


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


ENERGIAS DE PORTUGAL: S&P Cuts Corp. Credit Ratings to 'BB+/B'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term and
short-term corporate credit ratings on Portuguese utility EDP -
Energias de Portugal S.A. (EDP) and its financing vehicle EDP
Finance B.V. to 'BB+/B' from 'BBB/A-2'. "At the same time, we
removed the ratings from CreditWatch, where they were placed with
negative implications on Dec. 7, 2011. The outlook is negative,"
S&P said.

"We have assigned a recovery rating of '3' to EDP's and EDP
Finance B.V.'s senior unsecured debt, reflecting our expectation
of meaningful (50%-70%) recovery in the event of a default," S&P
said.

"The rating actions follow our review of EDP's status as a
government-related entity (GRE) and its credit profile in light
of its upcoming privatization, its exposure to country risk
following the weakening of Portugal's creditworthiness, and the
effects related to the future shareholding structure," S&P said.

"The downgrade was triggered by the lowering of our sovereign
ratings on Portugal to 'BB/B' from 'BBB-/A-3' on Jan. 13, 2012.
Our 'BB+' long-term rating on EDP is one notch higher than the
long-term rating on Portugal. Under our criteria, this is the
maximum that a nonsovereign entity rating may exceed the rating
on a sovereign in the European Monetary and Economic Union
(eurozone). We assess EDP as having "high" exposure to domestic
country risks, as our criteria define this term. This is owing to
the utility sector's "high" sensitivity to country risk and EDP's
concentration in Portugal. We anticipate that EDP will continue
to generate more than 40% of its revenues in Portugal over the
medium term," S&P said.

"We believe deteriorating fiscal and economic conditions in
Portugal and Spain will continue to weigh on EDP's credit
profile. Recession will likely further erode the profitability of
EDP's demand-driven businesses. However, liberalized activities
account for only 11% of EBITDA. More importantly, we believe
weaker demand could increase tariff deficits in Portugal and
Spain, eroding EDP's cash flow and burdening its already
leveraged balance sheet," S&P said.

"EDP collects virtually all regulated low-voltage tariffs in
Portugal and about 6% in Spain. We estimate that EDP's regulatory
receivables in Portugal will likely increase to nearly EUR1.4
billion in 2012, from about EUR900 million in September 2011.
This is because at year-end 2011 the Portuguese regulator
deferred compensation for some of EDP's increased system costs to
smooth, over a longer period, tariff increases required to
maintain the economic balance of the electricity system. Based on
our observation of tariff deficit trends in Spain, we see a
heightened risk that additional deferrals of tariff increases
could occur in subsequent years in Portugal," S&P said.

"We also believe that streamlining some system costs, as
prescribed by the International Monetary Fund's review of
Portugal, and/or introducing levies on utilities could reduce
such deficits and constrain EDP's profitability. In addition,
although we consider the group's liquidity position to be secure
at least until year-end 2013, we are concerned that capital
markets could remain difficult for Portuguese companies and
challenge EDP's likely need to refinance a sizable amount of debt
in 2014 and 2015," S&P said.

"Nevertheless, a number of factors support rating EDP above the
sovereign, such as its significant share of regulated and quasi
regulated activities, which bear little volume and market risk.
These operations have so far been resilient to recessionary
conditions in EDP's core Iberian markets. This was reflected in
5% reported EBITDA growth, year on year, in the first nine months
of 2011," S&P said.

"Furthermore, we believe regulation risk in Portugal has abated
since the December 2011 approval of regulatory parameters for
electricity tariffs over 2012-2014. We believe this regulatory
update will benefit EDP's electricity distribution operations in
Portugal, which contribute about 15% of its EBITDA. It provides
good visibility over the next three years, preserves the
supportive hedging against rising sovereign yields through tariff
indexation, and should support higher returns from EDP's
regulated networks. We continue to regard Portugal's regulatory
framework for utilities as relatively strong, despite the
anticipated tariff deficits," S&P said.

"In addition, the significant pipeline of privatizations in
Portugal is, in our view, a strong deterrent to significant tax
or regulatory changes that would undermine EDP's financial
viability. China Three Gorges (CTG), China's largest and state-
owned hydropower utility, recently agreed to buy a 21.35% equity
stake in EDP for EUR2.7 billion from the Portuguese government.
As part of the strategic partnership, CTG will invest EUR2
billion in minority equity stakes in EDP's renewable projects
over 2012-2015, and a Chinese bank has committed to providing a
credit facility of up to EUR2 billion for up to 20 years. We
believe these arrangements shelter EDP somewhat from Portugal's
weakened economy. They also eliminate EDP's refinancing risk
until 2014, alleviate pressure from elevated financing costs, and
support its target of reducing leverage to 3x (unadjusted net
debt to EBITDA) by 2015, from 4.5x in 2010. This is although we
anticipate the further accumulation of tariff deficits," S&P
said.

"After EDP is privatized, we would no longer consider it a GRE,
since we don't believe the Portuguese government would be able to
provide extraordinary support to EDP or to otherwise affect EDP's
credit profile," S&P said.

"We continue to assess EDP's business risk profile as "strong."
This reflects EDP's dominant position in Portugal's supportive
regulatory environment, the overwhelming contribution to cash
flow of its regulated and long-term contracted asset-based
operations, and its degree of business and geographic
diversification. We expect EDP to originate between 55% and 60%
of its EBITDA outside Portugal in the coming years. In addition,
EDP has a low-carbon-intensive and modern generation fleet. Our
assessment is constrained by recessionary conditions in Portugal
and Spain, which hamper the profitability of EDP's small
deregulated operations and underpin the accumulation of tariff
deficits," S&P said.

"Our assessment of EDP's financial risk profile as 'aggressive'
reflects its high debt burden and maturities in a challenging
funding environment, its weak credit metrics, and high
shareholder returns, in our view. It also factors in improved
liquidity in the near to medium term and our anticipation of
positive discretionary cash flows in the coming years. We
anticipate that EDP's adjusted funds-from-operations-to-debt
ratio could exceed 18% by 2014, up from our estimate of about 15%
in 2011. Adjusted debt to EBITDA could fall to less than 4x from
our current estimate of 4.9x in 2011," S&P said.

"The negative outlook on EDP mirrors that on the sovereign
rating. Under our criteria for nonsovereign entities in the
eurozone, the rating on EDP is capped at one notch above the
sovereign credit rating on Portugal," S&P said.

A downgrade of Portugal to 'BB-', 'B+', or 'B' would
automatically trigger a downgrade of EDP by the same magnitude,
unless:

    "We revised our assessment of EDP's exposure to Portugal to
    'moderate' from 'high', which we consider unlikely in the
    foreseeable future unless EDP's new large shareholder
    fundamentally changes EDP's business parameters. This could
    allow for a two-notch differentiation to the sovereign," S&P
    said; or

    "We believed EDP could receive group support from CTG or
    related Chinese banks if it faced refinancing stress.
    However, CTG currently only holds a minority stake in EDP and
    has a limited track record as EDP's owner," S&P said.

"We could also lower our rating on EDP should EDP face unexpected
and far-reaching regulation changes that undermine its business
or financial risk profile," S&P said.

Ratings upside is very limited and, all else being equal,
conditional to an upgrade of Portugal.


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


STAFF COLLECTION: Bucharest Court Admits Insolvency Process
-----------------------------------------------------------
Romania Business Insider reports that the Bucharest Court has
admitted Staff Collection and Corssa's request to open insolvency
procedures, and named Casa de Insolventa Transilvania (CITR) as
their judiciary administrator.  Together, Staff Collection and
Corssa operate the House of Art, Fox, Levis and Eponge network
stores in Romania.

"Although it may seem a step back, opening insolvency procedures
is, in fact, a step forward for a manager. It is a crucial moment
in the life of a company, when a new business model plan is
started. Our experience has shown that if the reorganization plan
is appropriate and the procedure starts at the right time, what
can be a failure turns into a new business," the report quotes
Adrian Lotrean, Senior Partner, CITR, as saying.

Romania Business Insider relates that CITR will analyze Staff
Collection and Corssa, and together with the companies'
management will work on a reorganization plan.  The stated main
objective of this reorganization process is to continue the
commercial activity on the Romanian market, the report notes.

Staff Collection has a loss of EUR4.5 million in 2010, and a
turnover of EUR13.7 million, the report relates citing data from
the Public Finance Ministry.

Staff Collection is a family business set up 18 years ago by
Olivera Mihet and her sister Daniela Ciucilovici Berciu, together
with  Doru Florin Mihe and Ionel Petruta.  House of Art became
one of the largest Romanian retailers, with over 60 stores back
in 2008.


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


AYT CGH: Moody's Cuts Rating on EUR11-Mil. Class C Notes to 'Ba3'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the rating of Class B
and C of the notes issued by Series AyT C.G.H Caja Espana I.

   -- EUR45M B Notes, Downgraded to Baa2 (sf); previously on
      Feb 5, 2009 Downgraded to A3 (sf) and Confirmed

   -- EUR11M C Notes, Downgraded to Ba3 (sf); previously on
      Feb 5, 2009 Downgraded to Ba2 (sf) and Confirmed

Ratings Rationale

The rating action takes into consideration the recent structural
changes that lower the level of the interest deferral triggers on
the Class B, C and D notes. When an interest deferral trigger is
breached payment of interest on Classes B, C and D notes will be
brought to a more junior position in the waterfall on any payment
date. The deferral of interest payments on Classes B, C and D
benefits the repayment of the Classes senior to each of them, but
increases the probability of default on Classes B, C and D
themselves.

The interest deferral triggers have been amended as follows:

Class B:

The accumulated amount of written-off loans is higher than 12.0%
(decreased from 30.0%) of the initial amount of the assets pool
and the Class A is not fully redeemed.

Class C:

The accumulated amount of written-off loans is higher than 9.0%
(decreased from 21.1%) of the initial amount of the assets pool
and the Class A and Class B are not fully redeemed.

Class D:

The accumulated amount of written-off loans is higher than 7.0%
(decreased from 14.5%) of the initial amount of the assets pool
and the Class A, Class B and Class C are not fully redeemed

While the interest deferral trigger for Class D was lowered, this
did not, in of itself, have a negative impact on the outstanding
rating of these 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.

Caja Espana I closed in December 2007. In this transaction, the
originator (Caja Espana de Inversiones) securitized a portfolio
of 3,282 first ranking mortgage loans secured on residential
properties located in Spain, for an overall amount of EUR 500
million. The collateral consists of loans with a loan-to-value
(LTV) over 80%.

CEISS (Baa3/P-3/D+ under review for upgrade) is the servicer of
this transaction. On December 5, 2011 Moody's Investors Service
assigned long and short term debt and deposit ratings of Baa3/P-3
to the new entity Banco de Caja Espana de Inversiones, Salamanca
y Soria, S.A. (Banco CEISS). This follows the transfer (effective
as of December 2, 2011) of the financial business of the savings
bank, Caja Espana de Inversiones, Salamanca y Soria (CEISS) to
this new entity.

The ratings of the notes take into account the credit quality of
the underlying mortgage loan pools, from which Moody's determined
the MILAN Aaa Credit Enhancement (MILAN Aaa CE) and the lifetime
losses (expected loss). The expected loss and the Milan Aaa CE
are the two key parameters used by Moody's to calibrate its loss
distribution curve, used in the cash flow model to rate European
RMBS transactions.

AyT C.G.H Caja Espana I is still performing in line with the
revised assumptions as of February 2009. The share of 90+ day
arrears was 1.10% at the end of November 2011. The reserve fund
in AyT C.G.H Caja Espana I is currently at its target level.

Moody's expects Spanish unemployment remains elevated. Moody's
believes that the anticipated tightening of Spanish fiscal
policies is likely to weigh on the recovery in the Spanish labor
market and further constraint Spanish households finances.
Moody's also has concerns over the timing and degree of future
recoveries in a weaker Spanish housing market.

On the basis of Moody's negative sector outlook for Spanish RMBS,
Moody's assessed its lifetime loss expectation as of February
2009. The portfolio expected loss assumption is 3.30% of original
pool balance. Moody's also assessed the loan-by-loan information
AyT C.G.H Caja Espana I in February 2009 to determine the MILAN
Aaa CE. Milan Aaa CE for AyT C.G.H Caja Espana I was increased
17.70%-18.10% to 23.50%.

The rating addresses 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 principal
with respect of the notes by the legal final maturity. 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.

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, Cash Flow Analysis in EMEA RMBS:
Testing Structural Features with the MARCO Model (Moody's
Analyser of Residential Cash Flows) published in January 2006,
and Revising Default/Loss Assumptions Over the Life of an
ABS/RMBS Transaction published in December 2008.

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


CAJAMAR: Moody's Assigns Rating to Public-Sector Covered Bonds
--------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)A2 long-
term rating to the Series 1 EUR325 million cedulas territoriales
(CTs, public-sector covered bonds) issued by Cajamar (or the
issuer). The TPI assigned to this series is "Improbable".

Ratings Rationale

A covered bond benefits from the issuer's promise to pay interest
and principal on the bonds and if the issuer defaults, the
economic benefit of a collateral pool (the cover pool). The
ratings therefore take into account the following factors:

(1) The credit strength of Cajamar (rated Baa3/P-3/D+, all with a
negative outlook).

(2) The value of the cover pool, in the event of issuer default.
The stressed level of losses modelled in the event of issuer
default (the cover pool losses) is 24.6% for this transaction.

Moody's analysis of the value of the cover pool considered:

(i) The credit quality of the assets backing the covered bonds.
The public-sector covered bonds are secured by Spanish public-
sector loans. The collateral score for the cover pool is 13.5%.

(ii) The robust Spanish legal framework for CTs. CTs are governed
mainly by the Law 44/2002, of 23 November, on the reform of the
Financial System (The "Financial Law") and the Insolvency Law
(together, "the Legislation") and are full-recourse direct
corporate obligations of the issuing entity. Legal framework
strengths include (i) that CT holders have a priority security
claim over all the issuer's public-sector loans made in the
European Economic Area (the cover pool); (ii) the restriction on
issuing CTs to a maximum of 70% of the cover pool, which provides
for a minimum 43% over-collateralization; and (iii) in the event
the issuer becomes insolvent, the CTs do not have to be
terminated or accelerated.

(iii) The exposure to interest-rate risk, which is moderate.

(iv) The high level of over-collateralization in the cover pool.
The minimum over-collateralization level that is consistent with
the (P)A2 rating target is 3% while the current level of over-
collateralization is approximately 54% based on the proposed
issuance of EUR325 million and the cover pool as of December
2011.

Cajamar's cover pool comprises loans granted to Spanish public-
sector entities. The large majority of loans are to regional
governments and municipalities where Cajamar's has a commercial
presence. As of end-December 2011, Cajamar reported a cover pool
of around EUR500 million. In addition, Cajamar says that
following its announced merger with Ruralcaja, approximately
EUR150 million of new, additional eligible assets will be added
to the cover pool.

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

The (P)A2 rating assigned to the CTs is expected to be assigned
to all subsequent covered bonds issued by the issuer under this
program and any future rating actions are expected to affect all
such covered bonds. If there are any exceptions to this, Moody's
will in each case publish details in a separate press release.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings only represent Moody's
preliminary opinion. Upon a conclusive review of the transaction
and associated documentation, Moody's will endeavor to assign a
definitive rating to the covered bonds.

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 (i) a function
of the issuer's probability of default (measured by the issuer's
rating); and (ii) the stressed losses on the cover pool assets
following issuer default.

The cover pool losses for this program are 24.6%. This is based
on Moody's most recent modelling and is an estimate of the losses
Moody's currently models if the issuer defaults. Cover pool
losses can be split between market risk of 17.8% and collateral
risk of 6.8%. Market risk measures losses as a result of
refinancing risk, risks related to interest-rate and currency
mismatches (these losses may also include certain legal risks)
and further stresses that Moody's may add to its analysis when
the rating of the covered bond exceeds the sovereign debt rating.
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, which for this program is
currently 13.5%.

For further details on cover pool losses, collateral risk, market
risk, collateral score and TPI Leeway across 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 typically
updated quarterly in the "Performance Overview" published by
Moody's.

TPI FRAMEWORK: Moody's assigns a 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. Based on the current TPI of
"Improbable", the TPI Leeway is zero notches, meaning the covered
bonds might be downgraded as a result of a TPI cap once Cajamar's
rating is downgraded below Baa3, all other variables being equal.

A multiple-notch downgrade of the covered bonds might occur in
certain limited circumstances. Some examples might include (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'
(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 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.


UCI 15: S&P Affirms Ratings on Three Note Classes at 'D(sf)'
------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions in the Spanish residential mortgage-backed securities
(RMBS) transactions Fondo de Titulizacion de Activos UCI 15, UCI
16, UCI 17, and UCI 18.

Specifically:

    "In UCI 15, we lowered and removed from CreditWatch negative
    our ratings on the class A and B notes and lowered our rating
    on the class C notes," S&P said.

    "In UCI 16, we lowered and removed from CreditWatch negative
    our rating on the class A2 notes, lowered our rating on the
    class B notes, and affirmed our ratings on the class C, D,
    and E notes," S&P said.

    "In UCI 17, we lowered and removed from CreditWatch negative
    our ratings on the class A2 and B notes and affirmed our 'D
    (sf)' rating on the class C and D notes," S&P said.

    "In UCI 18, we lowered and removed from CreditWatch negative
    our ratings on the class A and B notes, lowered our rating on
    the class C notes, and affirmed our 'D (sf)' rating on the
    class D notes," S&P said.

"In May 2011, we placed on or kept on CreditWatch negative our
ratings on the most highly rated tranches in UCI 15, UCI 16, and
UCI 17, due to the increased likelihood we saw of the loans
backing each transaction falling into arrears. For the same
reason, in July 2011 we lowered and placed on CreditWatch
negative our ratings on UCI 18's class A and B notes," S&P said.

"Since closing, these UCI transactions have experienced
increasing levels of severe arrears (defined in these
transactions as 90+ days), which peaked in 2009. Since then, the
levels of arrears in these pools have stabilized, and have
decreased in certain arrears buckets. As of the December 2011
payment date, the percentage of severe arrears over the current
collateral balance was about 6.63% in UCI 15, 7.64% in UCI 16,
7.39% in UCI 17, and 4.92% in UCI 18," S&P said.

"We understand that in 2009, Union de Creditos Inmobiliarios,
Establecimiento Financiero de Credito S.A. (UCI) decided to adopt
a more proactive approach to arrears management, and to offer
temporary reductions in monthly installments to borrowers
experiencing difficulties. We understand that UCI enters into
this kind of agreement only when it considers the borrower's
difficulties to be temporary," S&P said.

"In our opinion, the loans currently under forbearance
arrangements are still more at risk of falling into arrears than
loans that have never entered into forbearance arrangements.
Moreover, such arrangements could, in our view, postpone the
recognition of losses and delay interest-deferral triggers for
the junior notes. This would be detrimental to the senior
noteholders, as interest flows due on the junior notes are
diverted toward the payments due to the senior noteholders," S&P
said.

"UCI has provided us with data showing that, in these
transactions, between 77% and 83% of the loans in the pools that
were subject to forbearance arrangements between the servicer and
the borrower are now performing, meaning that the loans are now
current on their payments," S&P said.

"In these transactions, loans that are currently in forbearance
arrangements total more than 20% of the total pool (specifically:
20.72% in UCI 15, 20.47% in UCI 16, 22.11% in UCI 17, and 23.77%
in UCI 18). We consider that the high concentration of loans in
forbearance arrangements could lead to further defaults and
reserve draws," S&P said.

"Based on the most recent available data on the performance of
the loans with temporary reductions in installments, we performed
our analysis by applying an increased foreclosure frequency to
loans that are, or have been, in forbearance arrangements. As a
result of all the factors mentioned, our cash flow analysis
indicates that certain classes of notes in these transactions
could no longer withstand our rating stresses at their previous
rating levels," S&P said.

"In UCI 15, the reserve fund has been partially drawn since March
2010, due to the increase in defaulted loans, and it is currently
at 61% of its required level. We have lowered our ratings on all
classes of notes in UCI 15 to rating levels that we consider to
be commensurate with the current level of credit enhancement
available. In UCI 16 and UCI 17, the cash reserves are depleted,
since the available excess spread has been insufficient to cover
defaulted amounts. The level of performing collateral
(nondefaulted loans) available to the UCI 16 and UCI 17
transactions to service the amounts due under the notes has
reduced. We calculate that the class B notes in UCI 16 are
undercollateralized by 8% of their current balance, and that the
class B notes in UCI 17 are undercollateralized by 21%.
Therefore, the credit enhancement provided by the performing
balance is negative for all classes of notes except for the class
A notes. We have lowered our ratings on UCI 16 and UCI 17's class
A2 and B notes to rating levels that we consider to be
commensurate with the current level of credit enhancement
available. At the same time, we have affirmed our ratings on the
class C and D notes in UCI 16, as the credit enhancement
available to these notes is sufficient to affirm our current
ratings," S&P said.

"In UCI 18, the reserve fund is at 100% of its required level.
The cash reserve was partially drawn on the December 2010 and
March 2011 interest payment dates, and it has been fully
replenished since the June 2011 interest payment date. Based on
the most recent data available for UCI 18, our cash flow analysis
indicates that lower ratings are commensurate with the credit
enhancement available to the class A2, B and C notes. As a
consequence, we have lowered our ratings on UCI 18's class A, B,
and C notes," S&P said.

"For all of these transactions, the interest-deferral trigger for
the junior notes is based on the amount of accrued default
balance of the pool. As per the investor reports, the accrued
default balance is defined as the balance of the mortgage loans
that have outstanding installments for longer than 18 months, or
those that have begun the process of execution of guarantees
without counting the amounts that might result during the process
of execution of guarantees of the mortgage loans," S&P said.

"We have affirmed our 'D (sf)' ratings on UCI 16's class E notes,
UCI 17's class C and D notes, and UCI 18's class D notes. Based
on the available investor reports from the trustee, these notes
had defaulted in June 2009 (UCI 16's class E notes and UCI 17's
class D notes), October 2010 (UCI 17's class C notes) and June
2011 (UCI 18's class D notes); and since their interest payment
defaults, these classes have not paid back any of the interest
previously due," S&P said.

"UCI 15, 16, 17, and 18 issued their notes in May 2006, October
2006, May 2007, and February 2008. They are backed by pools of
first-ranking mortgages secured over owner-occupied residential
properties in Spain and pools of unsecured personal or second-
lien mortgage loans, all associated with first-ranking mortgages
originated by Union de Creditos Inmobiliarios, Establecimiento
Financiero de Credito," S&P said.

             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

Ratings Lowered and Removed From Creditwatch Negative

Fondo de Titulizacion de Activos UCI 15
EUR1.452 Billion Mortgage-Backed Floating-Rate Notes

A            AA (sf)        AAA (sf)/Watch Neg
B            B (sf)         BB (sf)/Watch Neg

Fondo de Titulizacion de Activos UCI 16
EUR1.82 Billion Mortgage-Backed Floating-Rate Notes

A2           BBB (sf)       A+ (sf)/Watch Neg

Fondo de Titulizacion de Activos UCI 17
EUR1,415 Billion Mortgage-Backed Floating-Rate Notes

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

Fondo de Titulizacion de Activos UCI 18
EUR1.723 Billion Mortgage-Backed Floating-Rate Notes

A           BBB (sf)       A+ (sf)/Watch Neg
B            B (sf)        BB (sf)/Watch Neg

Ratings Lowered

Fondo de Titulizacion de Activos UCI 15
EUR1.452 Billion Mortgage-Backed Floating-Rate Notes

C            B- (sf)        B (sf)

Fondo de Titulizacion de Activos UCI 16
EUR1.82 Billion Mortgage-Backed Floating-Rate Notes

B            B- (sf)        B (sf)

Fondo de Titulizacion de Activos UCI 18
EUR1.723 Billion Mortgage-Backed Floating-Rate Notes

C            B- (sf)        B (sf)

Ratings Affirmed

Fondo de Titulizacion de Activos UCI 16
EUR1.82 Billion Mortgage-Backed Floating-Rate Notes

C            B- (sf)
D            CCC- (sf)
E            D (sf)

Fondo de Titulizacion de Activos UCI 17
EUR1,415 Billion Mortgage-Backed Floating-Rate Notes

C            D (sf)
D            D (sf)

Fondo de Titulizacion de Activos UCI 18
EUR1.723 Billion Mortgage-Backed Floating-Rate Notes

D            D (sf)


* SPAIN: Launches Another Round of Bank Restructuring
-----------------------------------------------------
Victor Mallet at The Financial Times reports that Luis de
Guindos, Spanish economy minister, has launched another round of
Spanish bank restructuring after more than three years of a
financial crisis centred on more than EUR175 billion of bad loans
linked to construction and housing.

The detailed plan announced by the center-right government last
week, five weeks after it replaced the Socialists in power,
obliges banks to find about EUR50 billion from profits and
capital this year to boost bad loan provisions and clean up their
balance sheets, the FT relates.

Only the strongest banks -- led by Santander, BBVA and Caixabank
-- can milk their recurring profits to achieve the new
requirements quickly, and Mr. de Guindos intends to force further
restructuring among weaker lenders by allowing banks that have
agreed to merge by May an extra year to find the money, the FT
says.

If they cannot, they will have to apply to the Fund for Orderly
Bank Restructuring (Frob) for high-interest loans in the form of
contingent convertibles or Cocos and risk being nationalized, the
FT states.

Spanish bankers and bank analysts say the measures will trigger
more bank mergers -- although the number of cajas or savings
banks groups has already been cut from 45 to 13 -- and also
accelerate deals already under consideration, the FT notes.

Under the de Guindos plan, banks will have to set aside EUR40
billion of extra provisions and capital on the EUR175 billion of
bad property assets -- including repossessed land and homes --
already identified by the Bank of Spain, the FT discloses.


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


VERISURE HOLDING: Moody's Assigns 'B3' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has assigned a B3 corporate family
rating and probability of default rating to Verisure Holding AB,
the indirect parent of the Swedish Target (previously named
Securitas Direct AB). At the same time, Moody's has assigned a
provisional (P)B2 rating to the EUR600 million worth of Series A
senior secured notes due 2018 to be issued by Verisure.

The outlook for all the ratings is stable.

This is the first time that Moody's has assigned ratings to
Verisure. Moody's issues provisional ratings in advance of the
final sale of securities and these ratings reflect the rating
agency's preliminary credit opinion regarding the transaction
only. Upon a conclusive review of the final documentation,
Moody's will endeavor to assign a definitive rating to the
group's proposed senior secured notes. The definitive ratings may
differ from the provisional rating.

Ratings Rationale

"The B3 CFR reflects the high leverage for Verisure, mitigated by
the strength of its business risk profile," says Douglas
Crawford, Moody's lead analyst for Verisure.

On September 2, 2011, funds managed by Bain Capital and Hellman &
Friedman ("the sponsors") completed the acquisition of Securitas
Direct AB (the "Swedish Target") and ESML SD Iberia Holding SL
(the "Spanish Target"). The sale values Securitas Direct at
EUR2.23 billion which implied a 11.7x multiple (based on June
2011E LQA -- as estimated by the sponsors). The sponsors
capitalized Verisure with EUR1.32 billion of new debt and EUR1
billion of equity and equity certificates funding.

The CFR reflects (i) the company's high leverage and weak credit
metrics pro-forma for the proposed transaction, with gross
adjusted leverage expected at around 7x at FY2011, with modest
deleveraging expected in the near term; (ii) its large exposure
to the Spanish market, which has been one of the only European
markets to actually show a decline in RHSB alarm penetration in
the last few years; (iii) its modest expected free cash flow
generation, with negative free cash flow generation expected in
2012; and (iv) the high cost per customer acquisition with a
relatively long 4 year period to reach breakeven. However, these
are somewhat mitigated by (i) the company's leading market share
in the fragmented European residential and small business
monitored alarm market with a widely recognized brand; (ii) the
resilient nature of the business in an economic downturn with
most capital expenditure success based; (iii) longstanding
customer relationships with low churn and an average life of
around 14 years; and (iv) growth prospects resulting from low
penetration in many of its markets and underpinned by the proven
success of the company's business model, (v) a track record of
growth in sales and profitability, including in Spain, during the
downturn independent of the macroeconomic environment.

The (P)B2 rating on the EUR600 million of Series A notes reflects
the presence of a EUR279 million super senior RCF offset by a
EUR716 million cushion in the form of a more junior EUR322
million Series B Term Loan and a EUR394 million Mezzanine
Facility.

The notes will be jointly and severally guaranteed on a senior
basis by most of the material and certain other subsidiaries that
guarantee the new revolving credit facility, including the
Swedish Purchaser and each of the subsidiaries organized in
Sweden, Norway, Portugal and Spain. The notes guarantors
accounted for 83% of total net sales in 2010 and 84% of total
assets as of September 2011. They also generated all the
operating profit, while the subsidiaries not guaranteeing the
notes, in aggregate generated an operating loss in 2010.

The notes will benefit from incurrence covenants including a
6.75x leverage test falling to 6x after one year, as well as
other covenants including those regarding creating liens,
restricted payments and asset sales. The RCF has only one
maintenance covenant that references drawn RCF debt to portfolio
EBITDA that Moody's expects to have substantial headroom.

The stable outlook reflects Moody's expectation that Verisure
will continue to deliver improving operating performance with no
deterioration in its financial profile. It also incorporates an
assumption that the company preserves at all times an adequate
liquidity profile.

Positive rating pressure could develop if Verisure reduces
leverage on a Gross Debt to EBITDA basis (as adjusted by Moody's)
to well below 6.5x; combined with a track-record of positive free
cash flow generation and a conservative financial strategy. On
the contrary, downward rating pressure could develop with an
increase in leverage to 7.5x Gross Debt to EBITDA (as adjusted by
Moody's) and/or material negative free cash flow on a sustained
basis.

The Principal methodology used in this rating were the Global
Business & Consumer Service Industry published in October 2010.
Other methodologies used include Loss Given Default for
Speculative Grade Issuers in the US, Canada, and EMEA, published
June 2009.

Verisure Holding AB has its registered office in Sweden. Through
its subsidiaries it is a leading diversified provider of
monitored alarm solutions (sales SEK5.5 billion for the year
ending December 2010) with operations mainly in Spain, Sweden,
Norway, and France.


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


GAVIN WARD: Goes Into Administration on Falling Revenue
-------------------------------------------------------
Burnley Express reports that Gavin Ward Ltd has gone into
administration but will continue trading its heating and plumbing
division.

The decision of the Coalition Government to scrap the scheme last
year contributed to falling revenue, and subsequently the
decision of company bosses to seek administration at the High
Court, according to Burnley Express.

"For some time staff have been aware of the difficulties the
business has been facing and I am grateful for the tremendous
effort they have all put in. . . .  A cut-throat trading
environment and major changes to government policy in how
domestic insulation services and repairs are funded is hitting
our industry hard. It has become necessary to focus Gavin Ward
Ltd's efforts solely on the heating side of the business. . . .
As a result, it is with regret that I can confirm the closure of
the company's insulation and building services divisions, with
the loss of those people employed in that division.
Unfortunately, we will lose some good people.  The heating and
plumbing division will remain with us.  We must now look forward
as a company," the report quoted an unnamed company spokesman as
saying.

Manchester firm of chartered accountants CLB Coopers is acting as
administrator.  The report relays that partner at the firm Mark
Getliffe said: "We are hopeful that part of the business value
can be realized."

Gavin Ward Ltd, which employs around 50 people, provides heating,
insulation, renewables, plumbing and building services from its
base in Northbridge House, Elm Street.


INEOS FINANCE: S&P Assigns 'B' Rating to $850-Mil. Senior Notes
---------------------------------------------------------------
Standard & Poor's Rating Services assigned its 'B' long-term debt
rating to the proposed $850 million senior secured notes due in
2019 to be issued by INEOS Finance PLC and guaranteed by Ineos
Holdings Ltd. The recovery rating on the notes is '2'.

The proceeds of the notes will be used to partially refinance the
existing EUR1.05 billion Term loan B.

The proposed notes have the same guarantees and security package
as existing senior secured notes (due 2015) and will rank pari
passu with the existing senior secured bank facilities.
Guarantors include the company's main operating entities,
consolidating approximately 85% of total group EBITDA and assets.

"The 'B' issue rating on the proposed notes is one notch higher
than the corporate credit rating. The '2' recovery rating on
these notes indicates our expectation of substantial (70%-90%)
recovery for debtholders in the event of a payment default," S&P
said.

The recovery rating on these notes reflects the company's
significant stressed enterprise value at the point of default,
the first lien extensive security on the company's major assets,
and the U.K.'s favorable jurisdiction.

"We view the proposed bond issue as credit positive for Ineos,
because it reduces refinancing risk related to the June and
December 2013 maturities of Term loan B, which would be reduced
to a combined EUR435 million," S&P said.

"That said, upside potential for the issuer credit rating on
Ineos would be tied to adequate covenant headroom, as we foresee
an increased likelihood of covenant breach in view of the
tightening levels set for 2012-2013. In addition, rating upside
would also depend on an improved macro environment. For instance,
we anticipate that Ineos will report a weak fourth quarter 2011
with lower margins and declining volumes related to seasonally
weaker demand and industry destocking in light of the prevailing
economic uncertainties," S&P said.

"At the same time, some indicators point to a better business
environment in January 2012. Depending on the path of economic
recovery and operating resilience, Ineos' EBITDA for 2012 could
be higher than the EUR1.2 billion currently assumed in our base-
line credit scenario," S&P said.


INEOS GROUP: Moody's Assigns '(P)Ba3' Rating to Sr. Sec. Notes
--------------------------------------------------------------
Moody's Investors Service has assigned provisional (P) Ba3/LGD 2
(28.7%) rating to the proposed senior secured guaranteed notes to
be issued by Ineos Finance Plc to refinance in part tranche B of
its senior secured guaranteed bank facilities. The ratings on the
existing instruments issued by Ineos Group Holdings S.A. and its
subsidiaries remain unchanged. The outlook on all ratings remains
stable.

Ratings Rationale

The (P) Ba3 rating on the proposed senior secured guaranteed
notes recognizes the priority position of the notes within the
capital structure of the group, as well as the benefits of the
security and guarantee package provided by the key holding
companies and operating companies of the group initially
representing at least 85% of its historical EBITDA and assets.
The security and guarantee package mirrors that enjoyed by the
lenders of the existing first lien guaranteed facilities. The
expected recovery on the new notes is also supported by the
significant layer of junior debt in the liability structure
(including second lien guaranteed facilities and existing 2016
senior guaranteed notes).

The provisional rating reflects Moody's preliminary credit
opinion regarding the transaction only. Upon conclusive review of
the final documentation, Moody's will endeavor to assign
definitive ratings to the notes. A definitive rating may differ
from a provisional rating.

Despite weak Q4 results, Ineos' liquidity has remained adequate,
with EUR581 million of cash on the balance sheet (only slightly
lower than the EUR602 million of cash at the end of September)
and an availability of EUR293 million under the committed
revolving credit facility due December 2013 (vs EUR150 million
headroom at the end of Q3 2011), an improved headroom compared to
Q3 (availability was EUR150 million), mainly due to working
capital related cash inflows in the last quarter. Further
liquidity could be available, subject to availability of eligible
receivables, under the EUR1.2 billion securitization facility,
which was recently extended to December 2014 (it was originally
due July 2013). As of December 31, 2011, headroom under this
facility was EUR66 million, based on eligible receivables.

Moody's believes that the liquidity currently available to Ineos,
together with the projected positive operating cash flows, would
be sufficient to address the liquidity needs of the company over
the next 12 months, which are considered overall modest, given
there are no scheduled debt repayments in 2012, capex would
remain below historical average (mainly due to the carve-out of
capital intensive refining business), and working capital
requirements are expected to be negligible in scenarios
characterized by modest or no growth in revenues. Moody's also
positively notes that the debt repayments for 2013 will be
materially lower as a result of the announced transaction, hence
benefitting the liquidity position also in 2013. However, Moody's
believes that Ineos could face a reduction of financial headroom
in the second half of 2012 under its committed bank facilities
due to forthcoming tightening of financial covenant levels, in
case the company experiences a deterioration in financial
performance in 2012. Moody's will monitor covenant compliance in
the next quarters, and could consider further rating actions in
case it becomes clear that Ineos is not able to put in place a
sustainable arrangement providing adequate financial flexibility.

The stable outlook on the ratings reflects Moody's expectation
that Ineos' management will (i) continue to focus on deleveraging
and preserving an adequate level of liquidity, as well as a
comfortable headroom under the financial covenants over a
deteriorating operating environment; and (ii) target a
refinancing at better conditions as soon as financial markets
allow. At the same time, the stable outlook reflects the rating
agency's appreciation that Ineos' earnings will be no longer
exposed to the high volatility of the refining business, which
should help management to more closely focus its efforts on
preserving the profitability of its core business and its
adequate liquidity profile.

Whilst unlikely at this juncture, upward rating pressure would
develop if leverage falls below 4.5x on a sustainable basis. An
upgrade of the rating would also require Ineos to maintain a
solid liquidity profile and proactively manage its maturities and
full compliance with its financial covenants. A deterioration in
operating performance leading to (i) a sustained weakness in cash
flow generation; (ii) weaker debt coverage metrics; (iii)
materially reduced headroom under the financial covenants; and/or
(iv) a sustained negative free cash flow (FCF) generation would
put a negative pressure on the ratings.

The principal methodology used in rating Ineos was the Global
Chemical Industry Methodology published in December 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.


MG ROVER: UK Watchdog Goes After Deloitte for Work
---------------------------------------------------
Martin Bricketto at Bankruptcy Law360 reports that a U.K.
accounting watchdog on Thursday accused Deloitte LLP of failing
to adequately consider the public interest in advising MG Rover
Group Ltd., which went bankrupt in 2005, and four of its one-time
directors in certain transactions.

Law360 relates that the Accountancy and Actuarial Discipline
Board said the disciplinary complaint targets the conduct of the
auditing and consulting giant and Maghsoud Einollahi, a former
partner in the company's corporate finance department, as
corporate finance advisers to various companies involved with MG
Rover and four former directors with MG Rover.

Headquartered in Birmingham, United Kingdom, MG Rover Group
Limited -- http://www1.mg-rover.com/-- produced automobiles
under the Rover and MG brands, together with engine maker
Powertrain Ltd.  Previously owned by Phoenix Venture Holdings,
the company faced huge losses in recent years, reaching GBP64.1
million in 2004, which were blamed on reduced sales.

MG Rover collapsed on April 8, 2005, after a tie-up with China's
largest carmaker, Shanghai Automotive Industry Corp., failed to
materialize.  Ian Powell, Tony Lomas and Rob Hunt, partners in
PricewaterhouseCoopers, were appointed as joint administrators.
The crisis left 6,000 people jobless, and caused a domino effect
on related businesses, particularly in the West Midlands.  Days
later, eight European subsidiaries -- MG Rover Deutschland GmbH;
MG Rover Nederland B.V.; MG. Rover Belux S.A./N.V.; MG Rover
Espana S.A.; MG Rover Italia S.p.A.; MG Rover Portugal-
Veiculos e Pecas LDA; Rover France S.A.S., and Rover Ireland
Limited -- were placed into administration.


MIJAH HOTEL: Bosses Deny Administration Rumors
----------------------------------------------
Ashbourne News Telegraph reports that bosses at The Miraj Hotel
Said business is booming, despite recent media reports that it
had gone into administration.

The Miraj Hotel's staff said that it has not called in
administrators despite a recent press release being circulated
stating that its owners, Arinza Star Hotels, had been taken over
by administration firm Duff and Phelps, according to Ashbourne
News Telegraph.

The report notes that staff insist that their lease has not been
owned by Arinza Star Hotels since April last year and that it is
currently owned by a firm called Unilynx.

"We want people to know that we're actually extremely busy. . . .
We've got a lot of business in already for the year ahead and
it's still coming forward.  This year is looking very good for
us, as was last year. . . . Anyone who has events booked with us
should not worry, we are running as normal and thank everybody
for their continued support as that's what you need in these
difficult times," the report quoted events manager Denise Mills
as saying.


OAKWORTH JOINERY: In Administration, 170 Jobs at Risk
-----------------------------------------------------
Construction Enquirer reports that Oakworth Joinery has gone into
administration putting 170 jobs at risk at the company's base in
Keighley, West Yorkshire.

"Our immediate priority is to look at options for the business
and we are consulting with staff, creditors and customers . . . .
Unfortunately, Oakworth is a victim of the continuing downturn in
the construction sector and of difficulties in accessing finance
for new machinery," the report quoted The P&A Partnership
administrator John Russell.

Mr. Russell added: "Oakworth's directors have tried their hardest
to keep the business trading profitably and took appropriate
professional advice early on in order to give the business the
best chance of survival. . . . They actually found a buyer
themselves, but unfortunately the deal fell through"

Oakworth Joinery is an independent window and door manufacturer
in the UK.


PLASTIC SORTING: Goes Into Administration, Cuts 27 Jobs
-------------------------------------------------------
BBC News reports that Plastic Sorting Ltd has gone into
administration cutting 27 jobs in the process.

Administrators are trying to find a buyer for Plastic Sorting's
business, according to BBC News.  The report relates that three
staff members have been retained to advise them.

BBC news notes that the ongoing business of the firm, which is
based on Blackwood Business Park and has an annual turnover of
around GBP1.2 million, is being run by administrators David Hill
and Peter Dewey, partners in the Cardiff office of Begbies
Traynor.

"We are continuing to trade the business while we conduct a
review of its operations and look for a buyer to take on the
business as a going concern," BBC news quoted said Mr. Hill as
saying.

Headquartered in Pontllanfraith, Caerphilly county, Plastic
Sorting Ltd specializes in recycling plastic bottles.


REVOLVER PR: Set for Administration, Enters Voluntary Liquidation
-----------------------------------------------------------------
The Drum reports that Revolver PR has gone into voluntary
liquidation.

The company, which has been going for over three years and run by
managing director Iain Bruce, is understood to have struggled in
recent months due to clients not paying their debts, according to
The Drum.

However, the report notes that despite the company entering
administration, a phoenix agency will be set up by Mr. Bruce in
the coming weeks.

"Like thousands of other businesses caught up in the recession's
domino effect, Revolver has been struggling to cope with a
mounting bad debt problem.  Although we have been able to ensure
that none of our freelancers or suppliers have gone unpaid, with
several former clients either winding up or unable to pay their
bills we have reluctantly taken the decision to place the company
in administration," The Drum quoted Mr. Bruce as saying.

The Drum discloses that Bigmouthmedia founder Steve Leach has
decided not to be a part of the new agency, having been a
shareholder in Revolver PR.

Revolver PR is a Glasgow based digital PR business.


ROADCHEF FINANCE: S&P Cuts Rating on Class B Notes to 'CCC+'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Roadchef Finance Ltd.'s class A2 and B notes following its review
of the transaction. The outlook for all classes is negative.

"The downgrades follow Roadchef Finance's weak track record of
cash flow generation compared with our expectations. At the
present EBITDA levels, the resultant free cash flow (FCF) still
fails to cover total debt service, with the class B1 notes being
at the greatest risk," S&P said.

Roadchef Finance is a corporate securitization of most of
Roadchef Ltd.'s operating business. The transaction closed in
December 1998.

"Our ratings address the full and timely payment of interest and
principal due on the notes, based primarily on the ongoing
assessment of the underlying business risk of the borrowers, the
integrity of the legal and tax structure of the transaction, and
the robustness of the cash flow supported by contractual
structural enhancements," S&P said.

"The collateral backing the notes comprises loans made to three
entities owned by Roadchef. These are Roadchef Motorways Ltd.,
Take A Break Motorway Services Ltd., and Blue Boar Motorways Ltd.
Each loan is secured on interests in 16 motorway service areas
across the U.K. Roadchef, including the development group outside
the securitization, currently has approximately a 21% market
share and attracts about 60 million visitors per year," S&P said.

"Our transaction update follows our discussions with senior
management and our formal review of Roadchef Finance's operating
performance. Our analysis encompasses the most recent operating
results up to and including the quarter ending Oct. 4, 2011, and
our discussions with senior management," S&P said.

"The negative outlook reflects our view that, given our
projections of a weak macroeconomic outlook for the U.K. in 2012
and Roadchef's direct exposure to consumer discretionary
spending, the cash flow available for capital expenditure will
remain limited, thus restricting improvements in the free cash
flows available to service the debt over the same period. Hence,
in our view, the transaction still faces significant headwinds,
and will need external support to meet its obligations and avoid
a breach of the financial covenant," S&P said.

               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

Roadchef Finance Ltd.
GBP210 Million Fixed- and Floating-Rate Asset-Backed Notes

Ratings Lowered; Outlook Negative

A2          B- (sf)/Negative       B (sf)
B           CCC+ (sf)/Negative     B- (sf)


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


* EUROPE: Corporate Default Expected to Rise This Year
------------------------------------------------------
Robin Wigglesworth at The Financial Times reports that European
corporate defaults are widely expected to climb sharply this year
despite the recent improvement in credit market sentiment as bank
lending cuts and a deteriorating economic backdrop put many
smaller or indebted companies under pressure.

Analysts have markedly increased their 2012 default forecasts for
European companies rated below investment grade, or junk, and
some restructuring advisers warn the pain could rise close to
levels seen at the nadir of the financial crisis, the FT
discloses.

According to the FT, European banks are under immense pressure to
raise capital or shrink their loan books to meet new regulations
with most choosing the latter course.

"We haven't seen it trickle into the default rate yet, but I
think it will soon," the FT quotes Peter Briggs, a senior
restructuring adviser at boutique firm Alvarez & Marsal, as
saying.  "Companies are going to find it hard to operate in this
macroeconomic environment, and banks are becoming increasingly
selective over who they are willing to support."

Still, some smaller companies look vulnerable to looming debt
repayments, the FT notes.  The FT states that of the EUR609
billion of cash held by 400 non-financial companies in
Bloomberg's index of Europe's largest companies, the largest 35
represented over half of this, according to calculations done by
Goldbridge, a London-based asset manager.

BNP Paribas predicts that the corporate bond default rate will
rise from the current 2.6% to 4% by the end of 2012 but others
are more bearish, the FT discloses.  Morgan Stanley predicts 5%;
RBS forecasts 5.6% and Bank of America Merrill Lynch 5.9%, the FT
relates.

If loans are included, defaults are expected to climb even
higher, the FT says.  According to the FT, Standard & Poor's
recently raised its forecasted default rate on "speculative"
debts to 6.1% for the full year of 2012, or 8.4% in its downside
scenario.


                            *********

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
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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
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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
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related conferences are encouraged.  Send announcements to
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Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
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                            *********


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-
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