/raid1/www/Hosts/bankrupt/TCREUR_Public/120502.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Wednesday, May 2, 2012, Vol. 13, No. 87
Headlines
D E N M A R K
* DENMARK: Moody's Says Bank Law Lessens Bail-In Risks
F I N L A N D
NOKIA CORP: S&P Cuts Corp. Credit Rating to 'BB+'; Outlook Neg.
F R A N C E
EUROPCAR GROUPE: S&P Affirms 'B' Corp. Credit Rating; Outlook Neg
* FRANCE: Banks' Shares Suffer Despite Major Restructuring Plans
G E O R G I A
GEORGIAN OIL: S&P Assigns 'B' Corporate Credit Rating
G E R M A N Y
FRESENIUS SE: S&P Puts 'BB+' Corp. Credit Rating on Watch Neg.
POWERWIND: Commences Insolvency Proceedings in Hamburg
PRIMACOM AG: Reportedly Put Up for Sale
PROMISE-I MOBILITY: S&P Lowers Rating on Class E Notes to 'CCC+'
WESTLB AG: Prudential's Suit Over Ethanol Plants' Sale Stays
I R E L A N D
ARGON CAPITAL: Moody's Cuts Rating on Series 99 Notes to 'Ba3'
BACCHUS 2006-2: S&P Raises Rating on Class E Notes to 'CCC+'
EIRCOM GROUP: Examiner Shuns Offer; Incurs EUR2.86BB Loss
L U X E M B O U R G
LECTA SA: Moody's Rates New Sr. Notes '(P)B1', Affirms 'B1' CFR
LECTA SA: S&P Affirms 'B+' Corp. Credit Rating; Outlook Stable
MONIER GROUP: S&P Assigns 'B-' Long-Term Corporate Credit Rating
N E T H E R L A N D S
CARLSON WAGONLIT: Moody's Upgrades CFR to 'B1'; Outlook Stable
LEOPARD CLO V: S&P Raises Rating on Class R Comb Notes to 'BB+'
PALLAS CDO II: S&P Raises Rating on Class Q Combo Notes to 'B+'
R O M A N I A
PIC SA: Succes Takes Over Pic Hypermarkets
R U S S I A
NURBANK JSC: Moody's Issues Summary Credit Opinion
X5 RETAIL: S&P Affirms 'B+' Corp. Credit Rating; Outlook Stable
S E R B I A & M O N T E N E G R O
ZELJEZARA AD: Tosyali Acquires Business for EUR15.1 Million
S W I T Z E R L A N D
PETROPLUS HOLDINGS: Says Investor Appeal May Delay Delisting
U N I T E D K I N G D O M
ANGLIAN WATER: Moody's Issues Summary Credit Opinion
BANK OF BARODA: Moody's Issues Summary Credit Opinion
CAITHNESS BEEF: In Administration on Rising Costs
CITY SITE: Collapses Into Administration
HBOS: KPMG May Face Formal Probe Over Bail-Out
INTERNATIONAL POWER: S&P Lifts Sr. Sec. Debt Rating From 'BB+'
PREFERRED RESIDENTIAL 05-1: S&P Lowers Class D1c Rating to 'BB-'
RANGERS FC: Miller Says Bid More Than Blue Knights & Kennedy's
SUSTAINABLE GROWTH: Investors Lose GBP40MM in Investment Fraud
YOUNGER HOMES: Enters Into Receivership
* SCOTLAND: Corporate Insolvencies Up 37.5% in Q4 of 2011
*********
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D E N M A R K
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* DENMARK: Moody's Says Bank Law Lessens Bail-In Risks
------------------------------------------------------
According to Bloomberg News' Frances Schwartzkopff, Moody's
Investors Service said on Monday in its weekly credit outlook
that Danish bank regulators' resolution last week of two failed
banks without imposing senior creditor losses lessens risks of
future bail-ins.
Moody's said that still, the failures highlight the credit
challenges that lenders continue to face, particularly from loans
to the "poorly performing" agricultural and property industries,
Bloomberg relates.
The government also probably won't always be able to avoid
bail-ins when banks fail, which Moody's said it expects to occur
more often, Bloomberg notes.
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F I N L A N D
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NOKIA CORP: S&P Cuts Corp. Credit Rating to 'BB+'; Outlook Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Finland-based mobile
telecommunications equipment manufacturer Nokia Corp. to 'BB+'
from 'BBB-' and its short-term corporate credit rating to 'B'
from 'A-3'. The outlook is negative.
"At the same time, we lowered our issue ratings on Nokia's
unsecured debt to 'BB+' from 'BBB-' and assigned recovery ratings
of '3' to this debt, reflecting our expectation of meaningful
(50%-70%) recovery prospects in an event of payment default," S&P
said.
"The rating action reflects a downward revision of our
expectations for revenues from Nokia's Devices and Services
division in 2012 and a subsequent revision of our profitability
and cash flow assumptions," S&P said.
"We now believe that revenues from the Devices and Services
division could decline in 2012 by the same extent as in 2011
(minus 18%) after Nokia reported first quarter 2012 revenues
below our expectations, particularly for Symbian-based
smartphones. We still expect revenue from Lumia smartphones to
grow over time but not sufficiently to offset a rapid decline in
revenue from Symbian-based smartphones over the next few
quarters. We believe the volume market share of the smartphone
operations could decline below 10% (from 12.6% in the fourth
quarter of 2011 according to market research company Strategy
Analytics), although smartphone revenues in absolute terms could
start rising by the end of 2012, contributing to a stabilization
of revenues in the Devices and Services division toward the end
of 2012 or the beginning of 2013.
Furthermore the mobile phone operations' revenues in the first
quarter of 2012 fell by 32% year-on-year. Nokia's strong position
in this segment could weaken further, especially in China and
India, where demand has been significant for low-price
smartphone-like devices, a segment where Nokia currently lacks
competitiveness. We understand that Nokia intends to launch new
devices to close the gap in this segment but we expect
competition from manufacturers of low-price devices to intensify
and we have slightly revised our volumes and price assumptions
for the mobile phone operations," S&P said.
"We understand that restructuring of Devices and Services
division and the Telecom Network Equipment division (NSN),
targeting a combined cost reduction of at least EUR2 billion by
the end of 2013, could accelerate and deepen in the Devices and
Services division. However, we do not believe that this will
offset declining revenues and we expect non-IFRS operating
margins for the Devices and Services division to be slightly
negative in 2012, compared with 7% in 2011. We have also revised
our free operating cash flow (FOCF) expectations to incorporate
our weaker margin assumptions; we now expect consolidated FOCF of
minus EUR1 billion in 2012. We continue to view Nokia's cash
position as a positive factor but now expect net cash to fall
much faster than we had previously anticipated to EUR3.5 billion-
EUR4.0 billion at Dec. 31, 2012, from EUR4.9 billion at March 31,
2012. This anticipated sharp decline also includes a dividend
payment of EUR750 million in the second quarter of 2012," S&P
said.
"The negative outlook reflects the possibility of a downgrade in
the next 12 months if we see that the non-IFRS operating margin
in the Devices and Services division remains at or below break
even, or if consolidated FOCF remains negative, as this would
further reduce Nokia's net cash position," S&P said.
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F R A N C E
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EUROPCAR GROUPE: S&P Affirms 'B' Corp. Credit Rating; Outlook Neg
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit ratings on France-based car rental firm Europcar
Groupe S.A. (Europcar) and Europcar's subsidiary, Europcar
International S.A.S.U (ECI). "We also affirmed our issue ratings
on the group's debt instruments. The recovery ratings are
unchanged. The outlook is negative," S&P said.
"At the same time, we assigned our 'B-' issue rating to
Europcar's proposed EUR335 million notes due 2017. The recovery
rating on the proposed notes is '5', indicating our expectation
of modest (10%-30%) recovery in the event of a payment default,"
S&P said.
"The ratings reflect our view that Europcar still faces execution
risk on its current refinancing plan. To complete the refinancing
of its 2012/2013 debt maturities, Europcar will have to
successfully place the new proposed notes to replace the existing
EUR425 million floating rate notes (FRNs) maturing in May 2013.
We believe the issuance may be challenging in the context of an
unpredictable bond market environment in Europe," S&P said.
"Nevertheless, we view positively the significant progress
Europcar has made in following its refinancing plan over the past
few weeks. On April 12, we assigned an 'A' issue rating to
Europcar's securitization program ('FCT Sinople'), which resulted
in a more-favorable advance rate on its fleet financing program
and helped improve its liquidity position. Europcar's liquidity
was also boosted by new binding agreements with its lending banks
for the refinancing of its revolving credit facility (RCF) for
general corporate purposes -- pending successful refinancing of
the maturing notes -- and of the company's U.K. fleet funding
facility," S&P said.
"In addition, we expect shareholder Eurazeo (not rated) to inject
EUR90 million of equity to repay part of Europcar's EUR425
million outstanding FRNs. In our view, this will help the
refinancing process and should marginally improve the company's
credit metrics," S&P said.
"The negative outlook continues to reflect the refinancing risk
associated with Europcar's upcoming debt maturities, in the
context of challenging and unpredictable European capital
markets," S&P said.
"If Europcar does not successfully address its refinancing needs
in the first half of 2012, we would likely revise down our
assessment of its liquidity position to 'weak' from 'less than
adequate.' This would likely lead to a one-notch downgrade, with
a potential for further downgrades depending on the company's
progress toward refinancing its debt," S&P said.
"However, our base-case expectation is that Europcar will
successfully refinance its May 2013 FRNs in the coming weeks,
thereby completing the full refinancing process it embarked on in
the past months. In that case, we would likely revise the outlook
to stable from negative and affirm the ratings at their current
level," S&P said.
"We also believe that, despite the negative effect of the
challenging economic environment in Western Europe on Europcar's
operating performance and on the costs associated with the
refinancing process, credit metrics will remain in line with the
levels we consider commensurate with the current 'B' rating. This
includes ratios of funds from operations to debt above 10% and an
EBITDA interest cover of more than 2x. We therefore view
potential pressures on the ratings as primarily related to
liquidity issues," S&P said.
* FRANCE: Banks' Shares Suffer Despite Major Restructuring Plans
----------------------------------------------------------------
Noemie Bisserbe at Dow Jones Newswires reports that despite
launching major restructuring plans, bolstering the capital
buffers regulators say are needed to absorb possible future
losses, slashing their enormous balance sheets, reducing their
risk exposure and lowering their funding needs, French bank
shares are once again languishing close to last summer's painful
lows.
According to Dow Jones, like their peers across the region, BNP
Paribas SA, Societe Generale SA and Credit Agricole SA are being
hit by renewed fears about the euro zone crisis, centered largely
on Spain.
"French banks, given their widespread presence in Europe are very
symbolic," Dow Jones quotes Natixis analyst Elie Darwish as
saying.
But investors also cite an additional reason to be cautious on
the outlook for the French banks: political risk, Dow Jones
notes. France's presidential election is causing new headaches
for the banks, further complicating their sweeping efforts to
regain market confidence, Dow Jones discloses.
French banks were thrust to the forefront of the European
financial crisis last summer when investors became alarmed by
their sovereign debt exposure to the region's troubled economies,
Dow Jones says. Their shares plummeted as U.S. money-market
investors took fright and pulled dollar funding from many
European banks, Dow Jones relates.
The three large banks moved quickly, announcing major
restructuring plans, Dow Jones discloses. They promised to
abandon operations in dozens of countries, discontinue some
investment banking activities and lay-off thousands of employees,
Dow Jones recounts.
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G E O R G I A
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GEORGIAN OIL: S&P Assigns 'B' Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating and 'B' short-term corporate credit
rating to Georgian energy company Georgian Oil and Gas Corp. JSC
(GOGC). The outlook is stable.
"The ratings on GOGC, which is fully owned by the government of
Georgia (BB-/Stable/B), reflect our assessment that there is a
'very high' likelihood of extraordinary government support (in
accordance with our criteria for government-related entities).
They also reflect the company's stand-alone credit profile of
'b-', which is based on its 'vulnerable' business risk profile
and 'aggressive' financial risk profile," S&P said.
S&P's assessment that there is a "very high" likelihood of state
support is based on its view of GOGC's:
* "'Very important' role for the government, given its mandate
to ensure gas supply to the domestic market through
ownership of strategic pipelines, its active role in
strategic government development plans, and its status as a
national oil company," S&P said.
* "'Very strong' link with the government, given that it is
100% state-owned (both directly and via the fully state
owned State Partnership Fund), our expectation that the
state will maintain majority ownership over the medium
term, the state's involvement in strategic decision-making
and the risk to the sovereign's reputation if GOGC were to
default. This view is supported by past strong financial
support for the company from the government in the form of
grants, concessional loans, direct equity contributions, and
tax benefits," S&P said.
"GOGC's stand-alone credit profile is constrained, in our view,
by the company's reliance on a single contract with State Oil
Company of Azerbaijan Republic (SOCAR, BB+/Stable/--) for gas
sales. The contract is currently very favorable for GOGC and the
company's profit margin is high compared with those of Western
European midstream gas companies. It underpins the company's
currently relatively high profitability and operating cash flow.
We understand that the contract is binding with fixed terms under
U.K. commercial law until 2030, but if the terms of this
agreement are amended during the contract period, it could have a
material impact on GOGC's earnings. We also note that GOGC
primarily acts as a government agent in gas wholesale activities,
as it does not have any significant upstream resources or
downstream retail operations in Georgia. As such, the company's
gas trading activities are not capital intensive and do not
require significant investment, and its operations could be
fairly easily replicated by other entities acting in Georgia,
which could challenge the company's business model," S&P said.
"The ratings are also constrained by expected high investment in
a hydropower plant, which we understand was initiated by the
government, and related construction and cost overrun risk. This
investment is likely to result in negative free operating cash
flow generation in the medium term and a rise in leverage," S&P
said.
"The ratings are supported by GOGC's strategic importance to the
government as the dominant gas supplier to the domestic market.
The company has a strong track record of financial aid, currently
low debt leverage, take-or-pay conditions in its contract with
SOCAR, and high profitability compared with its peers," S&P said.
"GOGC's ownership of two strategic pipelines which generate about
16% of total revenues also supports the ratings, in our view, as
they provide relatively stable earnings and cash flows from
regulated activities," S&P said.
"The stable outlook reflects our view that GOGC's currently low
debt leverage and relatively high profitability will mitigate the
risks related to negative FOCF generation, the company's sizable
investment program, and potential cost overruns," S&P said.
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G E R M A N Y
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FRESENIUS SE: S&P Puts 'BB+' Corp. Credit Rating on Watch Neg.
--------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
negative implications its 'BB+' long-term corporate credit
ratings on Germany-based health care group Fresenius SE & Co.
KGaA (FSE) and subsidiary Fresenius Medical Care AG & Co. KGaA
(FME; together with FSE, the group).
"At the same time, we placed our 'BBB-' issue rating on the
group's senior secured debt facilities on CreditWatch with
negative implications. The recovery rating on these instruments
is unchanged at '2', indicating our expectation of substantial
(70%-90%) recovery for senior secured creditors in the event of a
payment default," S&P said.
"In addition, we placed our 'BB+' issue rating on the group's
senior unsecured notes on CreditWatch with negative implications.
The recovery rating on these instruments is unchanged at '3',
indicating our expectation of meaningful (50%-70%) recovery for
senior unsecured noteholders in the event of a payment default,"
S&P said.
"Finally, we placed our 'BB-' issue rating on FSE's euro-
denominated promissory notes ('Schuldscheindarlehen') on
CreditWatch with negative implications. The recovery rating on
these notes is unchanged at '6', indicating our expectation of
negligible (0%-10%) recovery in the event of a payment default,"
S&P said.
"The CreditWatch placement follows FSE's announcement that it
intends to acquire German private hospitals operator Rh”n-
Klinikum AG for approximately EUR3.1 billion. We understand that
FSE will fund the transaction with a large amount of debt. In our
view, FSE's pro forma leverage after the acquisition is likely to
increase above the range of 3.0x-3.5x that we consider
commensurate with the current 'BB+' rating. In addition, the
group has what we view as an acquisitive financial policy and
track record, especially in light of FME's recent acquisition of
Liberty Dialysis Holdings," S&P said.
"The alignment of the corporate credit rating on FME with that on
FSE is a consequence of our assessment of FME's relationship with
FSE. This includes FSE's significant influence over FME, as well
as the nature of their economic relationship," S&P said.
"In our view, FSE's leverage following the potential and mainly
debt-funded acquisition of Rh”n-Klinikum is likely to be above
the range of 3x-3.5x that we consider commensurate with the
current ratings. We aim to resolve the CreditWatch within three
months, subject to further progress on the proposed transaction,"
S&P said.
"Our discussions with management will aim to determine the effect
of the transaction on the group's business and financial risk
profiles, mainly its effect on profitability, market position,
diversification, and cash flow generation," S&P said.
"We expect that a potential downgrade is likely to be limited to
one notch because we estimate that adjusted debt to EBITDA will
be about 3.5x after the acquisition, a level that we view as
commensurate with a 'BB' rating," S&P said.
"We will also review the effect of the acquisition financing on
the recovery prospects for the various rated debt instruments.
Depending on the mix of debt and equity financing raised for the
acquisition, the issue and recovery ratings could also be
affected," S&P said.
POWERWIND: Commences Insolvency Proceedings in Hamburg
------------------------------------------------------
Business Green reports that PowerWind had started insolvency
proceedings in the Hamburg courts.
According to Business Green, PowerWind filed for insolvency on
April 24, citing "substantial project delays mainly caused by
difficulties within financial institutions [which] led to
negative impacts on the business".
Business Green relates that the company said it hoped to take
advantage of a new insolvency law in Germany, allowing companies
time to review their position and, if possible, restructure their
finances.
"Since PowerWind has established an excellent reputation in the
market, its management is confident that, together with
customers, staff and suppliers, the company can be restructured
quickly and in a sustainable way," Business Green quotes
PowerWind as saying in a statement. "According to all parties
involved, the new insolvency law offers very good options for
this."
PowerWind is a German wind turbine supplier.
PRIMACOM AG: Reportedly Put Up for Sale
---------------------------------------
Bloomberg News reports that PrimaCom (PRC) Berlin GmbH, the
German cable company taken over by lenders last year after its
parent's insolvency, is being put up for sale as German
regulators pave the way for consolidation among smaller network
operators, said people familiar with the process.
Bloomberg's sources said investment bank Jefferies Group Inc. has
been hired to prepare the search for a buyer. Initial information
may be sent to potential bidders next month, one of Bloomberg's
sources said.
According to Bloomberg, people familiar with the process said
Tele Columbus GmbH, a larger competitor based in Berlin, is also
being sold and has attracted interest from Kabel Deutschland
Holding AG (KD8), Deutsche Telekom AG and Unitymedia GmbH, which
is owned by John Malone's Liberty Global Inc.
PrimaCom, based in Leipzig, offers television, Internet and
telephone services to more than 1 million households, mostly in
eastern Germany.
PROMISE-I MOBILITY: S&P Lowers Rating on Class E Notes to 'CCC+'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
PROMISE-I Mobility 2008-1 GmbH's (PROMISE I) class E notes. "At
the same time, we affirmed our ratings on the class A1+, A2+, B,
C, and D notes," S&P said.
"PROMISE-I is a balance-sheet synthetic asset-backed securities
(ABS) transaction that closed in March 2008. Bank loans
originated by IKB Deutsche Industriebank AG (IKB) to German small
and midsize enterprises (SMEs) back the transaction. Credit
enhancement to the credit-linked notes is provided by
subordination. The notes redeem in fully sequential order,
starting with the class A1+ notes, while realized losses are
allocated in reverse order of seniority, starting with the
unrated class F notes," S&P said.
"The rating actions reflect our performance review of the
transaction -- using the latest available servicer report as of
Feb. 29, 2012, and loan-level data received from the originator.
We have considered a number of factors in our analysis --
including portfolio amortization, single obligor group
concentration, portfolio credit deterioration, and ongoing loss
allocations," S&P said.
"Since our previous review of the transaction in November 2010,
it registered nine additional credit events totaling EUR9.8
million in principal balance. This brings the cumulative
principal amount of defaults to EUR26.6 million (1.77% of the
initial portfolio amount, related to 17 obligors). Of those 17
obligors, nine obligors totaling EUR13.8 million have completed
their workout procedure. The overall achieved recovery rate,
inclusive of the loss portions stemming from accrued interest and
foreclosure costs, is about 54%. As of February 2012, a
cumulative net loss of EUR6.6 million has been allocated to the
unrated class F notes, which now equals about 74.4% of its
original size. This compares with 81% at our previous review. As
of February 2012, about EUR10.3 million of obligors were still
undergoing workout. As the workout process on these obligors
continues to be finalized, we expect further residual losses to
be allocated to the class F notes over the coming payment dates,"
S&P said.
"In addition, from the information provided by IKB, we note that
an additional EUR19.9 million of obligors, representing 3.86% of
the portfolio balance (excluding obligors under workout), remains
to be categorized in the lowest four categories on IKB's internal
rating scale, which we believe poses the risk of further defaults
and losses," S&P said.
"Since November 2010, the portfolio has continued to amortize in
almost linear fashion, leading to a further deleveraging of the
capital structure. The current pool factor is about 35% and has a
remaining weighted-average life of about 2.3 years (compared with
2.9 years in November 2010). The class A1+ notional amount
outstanding is currently 29.3% of its original balance (compared
with 55.0% in November 2010). This in itself has led to an
increase in available credit enhancement for all classes of
notes; the increase was more pronounced for the senior notes than
for the junior notes," S&P said.
"On the other hand, portfolio amortization has also contributed
to a rise in obligor concentration. Our analysis shows that the
largest 20 obligor groups currently account for about 28% of the
portfolio balance (excluding obligors under workout), compared
with 17.5% when we last took rating action," S&P said.
"For the class A1+, A2+, B, C, and D notes, the rise in defaults
has been mitigated by the increase in credit enhancement
available to these notes resulting from amortization. In our
opinion, these classes of notes currently have levels of credit
enhancement that are commensurate with our current ratings. We
have therefore affirmed our ratings on these classes of notes,"
S&P said.
"For the class E notes, although there was an increase in
relative credit enhancement, this was markedly less than for the
other tranches. From this, together with the additional defaults
and the rise in obligor concentration, we concluded that the
credit enhancement available to the class E notes was no longer
commensurate with their current rating. We have therefore lowered
our rating on this class accordingly," S&P said.
POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES
"We have taken the rating actions based on our criteria for
rating European SME securitizations. However, these criteria are
under review," S&P said.
"As highlighted in the Jan. 17 Request For Comment, we are
soliciting feedback from market participants with regard to
proposed changes to our criteria for rating European SME
collateralized loan obligations (CLOs). We will evaluate the
market feedback, which may result in further changes to the
criteria. As a result of this review, our future criteria for
rating European SME CLOs may differ from our current criteria.
The criteria change may affect the ratings on all outstanding
notes in this transaction," S&P said.
"Until such time that we adopt new criteria for rating European
SME securitizations, we will continue to rate and surveil these
transactions using our existing criteria," 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 Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com/1111576.pdf
RATINGS LIST
Class Rating
To From
PROMISE-I Mobility 2008-1 GmbH
EUR83.9 Million Floating-Rate Credit-Linked Notes
Ratings Affirmed
A1+ AAA (sf)
A2+ AA- (sf)
B A- (sf)
C BBB- (sf)
D B (sf)
Rating Lowered
E CCC+ (sf) B- (sf)
WESTLB AG: Prudential's Suit Over Ethanol Plants' Sale Stays
------------------------------------------------------------
Eric Hornbeck at Bankruptcy Law360 reports that New York state
Judge Charles E. Ramos refused Thursday to decide if syndicated
financing agent WestLB had shortchanged Prudential Insurance Co.
of America and two other lenders out of US$27.1 million through
the post-bankruptcy sale of two Midwestern ethanol plants to
Valero Energy Corp.
According to Law360, Judge Ramos denied a cross-motion from the
ethanol plants' former operating company, ASA Ethanol Holdings
LLC, and said he would rule later on the jilted lenders' motion
for summary judgment on their breach of contract and other
claims.
About WestLB AG
Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB)
-- http://www.westlb.com/-- provides financial advisory,
lending, structured finance, project finance, capital markets and
private equity products, asset management, transaction services
and real estate finance to institutions. In the United States,
certain securities, trading, brokerage and advisory services are
provided by WestLB AG's wholly owned subsidiary WestLB Securities
Inc., a registered broker-dealer and member of the NASD and SIPC.
WestLB's shareholders are the two savings banks associations in
NRW (25.15% each), two regional associations (0.52% each), the
state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by
NRW (64.7%) and two regional associations (35.3%).
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ARGON CAPITAL: Moody's Cuts Rating on Series 99 Notes to 'Ba3'
--------------------------------------------------------------
Moody's Investors Service has downgraded the rating of the
following notes issued by Argon Capital PLC.
Issuer: Argon Capital PLC
Series 99 SKK300,000,000 Limited Recourse Secured Floating
Rate Credit-Linked Notes due 2012, Downgraded to Ba3 and
Placed Under Review for Possible Downgrade; previously on
Jan 11, 2012 Downgraded to Ba2
This transaction represents a credit linked note issued by Argon
Capital PLC. The Series 99 notes are credit linked to the
reference entity, Nova Ljubljanska Banka d.d. Merrill Lynch & Co.
Inc. is the swap guarantor and collateral provider for these
notes.
Ratings Rationale
Moody's explained that the rating action taken is the result of a
rating action on Nova Ljubljanska Banka d.d, whose Ba1 rating was
downgraded to Ba2 and left under review for possible downgrade on
April 25, 2012.
Merrill Lynch & Co. Inc. was also placed under review for
possible downgrade on February 15, 2012, however following the
guidance given in the press release titled "Moody's Reviews
Ratings for Banks and Securities Firms with Global Capital
Markets Operations" Moody's does not expect that a Merrill Lynch
downgrade would affect the rating of the notes at this time.
Moody's expects to conclude this review when the review of Nova
Ljubljanska Banka d.d. is completed.
Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the
ratings of the notes, as evidenced by 1) uncertainties of credit
conditions in the general economy, 2) more specifically, any
uncertainty associated with the underlying credits in the
transaction could have a direct impact on the repackaged
transaction and 3) additional expected loss associated with
hedging agreements in this transaction may also negatively impact
the ratings.
The principal methodology used in this rating was "Moody's
Approach to Rating Repackaged Securities" published in April
2010.
Moody's quantitative analysis of Repacks is designed to estimate
the expected loss "EL" borne by the Repack investor, given the
transaction structure, the Collateral and any other credit risks
arising under the transaction. To this end, Moody's relies on an
EL analysis in which Moody's identifies and attaches
probabilities to events that might give rise to losses to Repack
noteholders.
Moody's EL calculation assesses the probability and severity of
each possible loss-inducing event happening at discrete
(typically one-year) intervals through the life of the
transaction. The EL for each of these time points can then be
aggregated to provide a weighted-average EL for the rated notes.
No additional cash flow analysis or stress scenarios have been
conducted as the rating was directly derived from the rating of
the reference entity, and the collateral and swap guarantor.
BACCHUS 2006-2: S&P Raises Rating on Class E Notes to 'CCC+'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
BACCHUS 2006-2 PLC's class D and E notes. "At the same time, we
have affirmed our ratings on the class A-1, A-2A, A-2B, B, and C
notes," S&P said.
BACCHUS 2006-2 is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.
"The rating actions follow our assessment of the transaction's
performance, and the 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 Feb. 29, 2012), in addition to our
credit and cash flow analyses. We have considered recent
transaction developments, and have applied our 2010 counterparty
and our cash flow criteria," S&P said.
"From our analysis, we have observed a decline in the proportion
of assets in the collateral portfolio that we consider to be
rated in the 'CCC' category ('CCC+', 'CCC', or 'CCC-') since we
previously reviewed the transaction. This, among other things,
has resulted in a decrease of the scenario default rates at each
rating level," S&P said.
"In the same period, we have also observed increased weighted-
average spread earned on the collateral portfolio. Par value
tests for the class A/B notes, and C notes now comply with their
minimum triggers, whereas they were failing at our previous
review. The class D and E notes' par values are currently below
their minimum triggers, although they were passing their par
value tests at the latest payment date in February 2012," S&P
said.
"Currently, none of the notes are deferring interest. Capitalized
interest on the class C, D, and E notes have been repaid, as of
this review, and made principal payments on the class E notes
under the transaction's turbo feature," S&P said.
"We have subjected the transaction's 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
considered 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.
"In our opinion, the documents for the portfolio asset swaps do
not fully reflect our 2010 counterparty criteria. Hence, in our
cash flow analysis for ratings that are more than one notch above
our issuer credit ratings on the relevant counterparties, we also
considered potential scenarios where the asset swap
counterparties fail to perform and where, as a result, the
transaction is exposed to greater currency risk," S&P said.
"Taking into account our credit and cash flow analyses, and our
2010 counterparty criteria, we consider the credit enhancement
available to the class D and E notes in this transaction to be
commensurate with higher ratings than we previously assigned. We
have therefore raised our ratings on these classes of notes. We
consider the credit enhancement available to the class A-1, A-2A,
A-2B, B, and C notes to be commensurate with our current ratings.
We have therefore affirmed our ratings on these classes of
notes," S&P said.
"Like at our previous review, our rating on the class E notes is
constrained by the application of our largest obligor default
test--a supplemental stress test that we introduced in our 2009
criteria update for corporate collateralized debt obligations
(CDOs). Additionally, our rating on the class D notes is now also
constrained by this test," 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 Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com/1111576.pdf
RATINGS LIST
Class Rating
To From
BACCHUS 2006-2 PLC
EUR491.21 Million Senior Secured and Deferrable Floating-Rate
Notes
Ratings Raised
D B+ (sf) B (sf)
E CCC+ (sf) CCC- (sf)
Ratings Affirmed
A-1 AA- (sf)
A-2A AA+ (sf)
A-2B AA- (sf)
B BBB+ (sf)
C BB+ (sf)
EIRCOM GROUP: Examiner Shuns Offer; Incurs EUR2.86BB Loss
---------------------------------------------------------
Lorraine Turner at Reuters reports that the examiner for Eircom
said on Monday he had rejected an offer for the company from an
unspecified party, and also announced an operating loss of
EUR2.86 billion (US$3.8 billion) for the year to June 2011.
Eircom was granted court protection from creditors at the end of
March to allow it to restructure EUR3.75 billion (US$5 billion)
debt.
According to Reuters, Eircom examiner, Michael McAteer from
insolvency specialist Grant Thornton, said the decision not to
proceed with the conditional non-binding offer was unanimously
supported by senior lenders, which are likely to take control of
the company.
Statutory accounts for Eircom Ltd., showed it has recognized a
new provision of EUR2.5 billion debt related to loan guarantees
for the Eircom group, Reuters discloses.
The accounts also showed a pension deficit of EUR253 million at
end-2011 due to volatility in financial markets and the market
values of pension scheme assets, Reuters notes.
Headquartered in Dublin, Ireland, Eircom Group --
http://www.eircom.ie/-- is an Irish telecommunications company,
and former state-owned incumbent. It is currently the largest
telecommunications operator in the Republic of Ireland and
operates primarily on the island of Ireland, with a point of
presence in Great Britain.
===================
L U X E M B O U R G
===================
LECTA SA: Moody's Rates New Sr. Notes '(P)B1', Affirms 'B1' CFR
---------------------------------------------------------------
Moody's Investors Service affirmed Lecta S.A.'s B1 Corporate
Family Rating and Probability of Default Rating upon the
announcement to issue EUR590 million of senior secured notes.
Moody's assigned a (P)B1 (LGD 4, 53%) rating to both the fixed
rate and floating rate tranches of the notes which will mature in
2018. Proceeds of the notes issuance together with available cash
resources will be used to refinance the group's existing EUR598
million of secured notes and EUR120 million of unsecured notes
which would otherwise mature in 2014. The ratings of the existing
notes will be withdrawn after repayment. The outlook on all
ratings is stable.
Moody's issues provisional ratings in advance of the final sale
of securities and these reflect the rating agency's 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 notes. A definitive rating may differ
from a provisional rating.
Ratings Rationale
With the proposed transaction, Lecta is extending its debt
maturity profile well in advance of the maturity of its existing
long-term debt instruments, and at the same time improves the
capital structure by using some of its cash on balance sheet to
pay down long term debt. There is also -- for the time being - no
dividend paid to its shareholders. The new capital structure
positions Lecta solidly in the current rating category.
Moody's also notes positively Lecta's fairly stable operating
performance over 2011 despite an increasingly challenging market
environment characterized by volume pressure and volatile input
costs. However, Lecta was able to limit the negative pressure and
actually grow volumes during 2011 as a result of the group's
leading market positions in its core Southwestern European
markets, its flexible cost structure and business set up as well
as the proximity to customers, also helped by its own merchant
business. Furthermore, the rating benefits from Lecta's track
record in generating positive free cash flows, despite
significant cash restructuring payouts incurred during the last
years.
At the same time, Lecta's gross leverage remains elevated as
indicated by Moody's adjusted Debt/EBITDA of 5.2 times pro forma
the transaction (3.8x on a net debt basis) considering the
inherent cyclicality of the paper industry as well as its
regional concentration with about 50% of sales generated in
Southwestern Europe, which is relatively more impacted by the
European sovereign crisis. Moody's therefore cautions that Lecta
will be challenged over 2012 to preserve current profitability
margins, which would in Moody's view require price increases to
mitigate input cost inflation. Further price increases beyond the
ones recently announced by Lecta and its competitors and which
still need to be implemented, may be challenging to achieve as
Lecta and its peers must contend with further declines in coated
fine paper volumes as seen in Q1 2012 and production overcapacity
in the industry.
The stable outlook, however, mirrors Moody's expectation that
Lecta can largely sustain nominal EBITDA levels despite the
challenging macroeconomic environment due to lower restructuring
costs, cost savings and incremental profitability from the recent
Polyedra acquisition. This should also allow Lecta to continue
generating positive free cash flows.
While the rating incorporates some headroom for bolt-on
acquisition activity such as the recent Polyedra transaction in
Italy, the stable outlook does not assume any transformational
debt-funded acquisitions or significant shareholder
distributions. After the refinancing, Lecta's liquidity position
is expected to remain good, benefitting from more than EUR200
million of cash available and access to a renewed revolving
credit facility of EUR80 million maturing in 2018 and with fairly
limited conditionality language. This should enable Lecta to
comfortably meet cash requirements for seasonal working capital
funding as well as for capex purposes. At the same time, Moody's
notes that restrictions for cash distributions are loosened under
the new bond documentation, which in Moody's view might result in
a return to shareholder over time, absent cash spending on other
value accretive projects.
The (P)B1 rating of the proposed EUR590 million senior secured
notes is in line with the group's corporate family rating,
reflecting the limited amount of priority debt ranking ahead of
these notes, relating to the EUR80 million super priority RCF.
The secured notes will be issued by Lecta S.A., a holding
company, and are guaranteed on a secured basis by all major
subsidiaries and will be secured by shares pledges, certain bank
accounts and receivables. The RCF benefits from essentially the
same guarantee and collateral package as the proposed notes, but
will have priority access to enforcement proceeds in a default
scenario.
Further upwards pressure would require a track record of improved
profitability levels as indicated by EBITDA margins in the low to
mid teens, enabling in turn a further deleverage of Debt/EBITDA
moving to below 4.5 times while Moody's would also expect a
continuation of positive free cash flow generation.
The rating could come under downward pressure should Lecta's
profitability decline as indicated by EBITDA margins below the
high single digit %, cash coverage as measured by RCF / Debt to
below 10% or free cash flow generation turning negative.
Assignments:
Issuer: Lecta S.A.
Senior Secured Regular Bond/Debenture, Assigned a range of 53
- LGD4 to (P)B1
The principal methodology used in rating Lecta S.A. was the
Global Paper and Forest Products Industry Methodology published
in September 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.
Lecta, with legal headquarters in Luxembourg, is a leading coated
fine paper manufacturer in Spain, Italy and France. The company
also has a specialty paper division and a distribution business
in Spain, Portugal, France and Argentina. During 2011, Lecta
generated sales of approximately EUR1.6 billion. The company is
controlled by private equity funds managed by CVC Capital
Partners.
LECTA SA: S&P Affirms 'B+' Corp. Credit Rating; Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on Luxembourg-registered paper producer
Lecta S.A. The outlook is stable.
"At the same time, we assigned a 'B+' issue rating to the
proposed EUR590 million senior secured fixed- and floating-rate
notes due 2018 to be issued by the company. The recovery rating
on the notes is '4', reflecting average (30%-50%) recovery
prospects for senior secured noteholders in an event of default,"
S&P said.
"The rating actions follow a recent announcement from Lecta that
it is undertaking a refinancing and debt maturity extension. This
transaction involves the refinancing of existing debt commitments
with the issuance of notes amounting to EUR590 million. In our
view, the changes in the capital structure do not alter our
assessment of Lecta's financial risk profile as 'aggressive,'
with key financial metrics remaining commensurate with the
current ratings," S&P said.
"The ratings also reflect our view of Lecta's 'fair' business
risk profile. This takes into account the company's exposure to
the cyclical, competitive, and challenging European coated
woodfree (CWF) paper market and its limited integration in pulp.
We consider these weaknesses to be partly offset by a good market
position--including major cost advantages derived from the
company's proximity to key end-markets; access to a modern,
flexible asset base; and a focused business and financial
strategy. In addition, we view Lecta's strong liquidity position
as a key supportive factor for the ratings," S&P said.
"We do not factor in any potentially negative or positive credit
impact from an exit by the current owners into our assessment of
the company because we would consider such a development to
constitute 'event risk,'" S&P said.
"In our view, Lecta's credit measures will remain at levels we
view as rating commensurate. We see a ratio of FFO to debt
exceeding 12% and adjusted debt to EBITDA of less than 5x as
commensurate with a 'B+' rating. The outlook does not factor in
any event risk associated with the exit of the current owners.
However, a sale of the company would trigger a review of the
ratings," S&P said.
"The ratings would likely come under pressure if Lecta's gross
margin were to drop sufficiently to cause the company's credit
metrics to deteriorate to below levels we view as commensurate
with the rating. The ratings could also come under pressure over
the near to medium term, due to operating factors--for example,
lower volumes and selling prices--if not sufficiently offset by
lower input costs," S&P said.
"We view ratings upside as limited, even if the company's credit
measures were to improve from their current levels, given our
view of its aggressive financial policy," S&P said.
MONIER GROUP: S&P Assigns 'B-' Long-Term Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' long-term
credit rating to Luxembourg-registered building materials
manufacturer Monier Group S.a.r.l. The outlook is stable.
"At the same time, we assigned our 'B-' issue rating to the
proposed EUR250 million senior secured notes due 2019, to be
issued by Monier Bond Finance & Co S.C.A. (Monier Bond Finance;
not rated), an orphan special-purpose vehicle (SPV)," S&P said.
"Monier will use the proceeds of the notes to refinance its
existing senior secured debt through a back-to-back loan
(Facility E, a new tranche under the Credit Agreement). We
assigned a recovery rating of '4' to the back-to-back loan,
reflecting average (30%-50%) recovery prospects for the senior
secured noteholders in an event of default," S&P said.
"In addition, we assigned our 'B+' issue rating to the new
proposed EUR150 million super senior revolving credit facility
(RCF) due 2017, to be issued by Monier. The new super senior RCF
has a recovery rating of '1', indicating our expectation of very
high (100%-90%) recovery in the event of a payment default," S&P
said.
"Finally, we assigned our 'B-' issue ratings to the EUR54.2
million nonextended senior secured facilities due 2015 and the
EUR378.3 million extended senior secured facilities due 2017. The
recovery rating on these facilities is '4', indicating our
expectation of average (30%-50%) recovery for senior secured
lenders in the event of a payment default. The assignment of
ratings follows Monier's announcement of plans to refinance
substantial debt maturities due 2015. These plans include the
issue of EUR250 million senior secured notes due 2019 through a
special purpose financing entity, Monier Bond Finance," S&P said.
"The ratings on Monier reflect our view of the group's 'highly
leveraged' financial risk profile and 'fair' business risk
profile. In our view, the main constraint on the ratings is the
group's heavy debt burden, with Standard and Poor's-adjusted
total debt of EUR1.7 billion at the end of 2011," S&P said.
"In our view, continued difficult trading conditions in many of
the markets in which Monier is active does not allow for
significant organic deleveraging. Our base-case sector and issuer
forecasts estimate a broadly flat performance in 2012. This,
along with likely increased cash interest payable (if the
proposed refinancing plan is successfully implemented) will
result in limited free operating cash flow generation," S&P said.
"Our assessment of Monier's 'fair' business risk profile includes
our view of the industry's highly cyclical and capital-intensive
nature, as well as the group's exposure to volatile input costs
and significant exposure to the early-cyclical, and still-
depressed residential end markets. In part, this is offset by
Monier's solid market positions, a degree of product innovation,
fair geographic diversity within Europe, and several credit-
positive features of the industry. These features include a large
share of renovation-led demand, high barriers to entry, the local
nature of markets, and moderate substitution risks," S&P said.
"The issue rating on the proposed EUR250 million senior secured
notes due 2019, to be issued by Monier Bond Finance, an orphan
SPV, is 'B-', in line with the 'B-' long-term corporate credit
rating on Monier. There is no recovery rating on the proposed
notes because we do not assign recovery ratings to notes issued
by SPVs," S&P said.
Monier will use the proceeds of the notes to refinance its
existing senior secured debt through a back-to-back loan. The
recovery rating on this back-to-back loan is '4', reflecting
average (30%-50%) recovery prospects for the senior secured
noteholders in the event of a payment default.
"The issue rating on the new EUR150 million super-senior RCF due
2017, to be issued by Monier, is 'B+', two notches above the
corporate credit rating on Monier. The recovery rating on this
RCF is '1', indicating our expectation of very high (100%-90%)
recovery in the event of a payment default," S&P said.
"The issue ratings on the EUR54.2 million non-extended senior
secured facilities due 2015 and the EUR378.3 million extended
senior secured facilities due 2017 are 'B-', in line with the
corporate credit rating on Monier. The recovery rating on these
facilities is '4', indicating our expectation of average
(30%-50%) recovery for senior secured lenders in the event of a
payment default," S&P said.
"We base our recovery prospects on our valuation of Monier as a
going-concern, underpinned by the value of its assets. We factor
in a comprehensive asset security package available to the super-
senior and senior secured lenders. We believe that recovery
prospects could be limited by the multijurisdictional exposure of
the business," S&P said.
"The stable outlook reflects our view of the group's 'adequate'
liquidity profile, independent of the successful refinancing and
its highly leveraged credit metrics, which in our view is
unlikely to improve meaningfully in the near term," S&P said.
"We view rating downside risk as remote. It could arise, however,
if interest coverage weakens materially or if we see a weakening
in liquidity, which we do not consider likely at this stage. Any
more aggressive shareholder actions or debt-funded spending could
also put pressure on the ratings," S&P said.
"Ratings upside would likely depend on a meaningful improvement
in credit metrics, specifically in cash flow measures. This could
occur as a result of a recovery in the building materials
industry and trading conditions," S&P said.
=====================
N E T H E R L A N D S
=====================
CARLSON WAGONLIT: Moody's Upgrades CFR to 'B1'; Outlook Stable
--------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating (CFR) and probability of default rating (PDR) of Carlson
Wagonlit B.V (CWT) to B1 from B2. Moody's has also upgraded the
rating assigned to the US$850 million of senior secured banking
facilities (maturing August 2014) to Ba3 from B1, and the rating
of the EUR285 million of senior secured notes (maturing May 2015)
to B3 from Caa1. Moody's will withdraw these ratings once the
debt instruments are repaid by proceeds of the new issuance.
At the same time, Moody's has also assigned a provisional (P)B1
rating, with a loss given default assessment of 4 (LGD4), to
CWT's proposed US$850 million dual tranche senior notes issuance
(due 2019). Moody's has also assigned a (P)Ba1 rating (LGD1) to
the company's proposed US$70 million senior secured revolving
credit facility (RCF) and a (P)Ba1 (LGD1) to its proposed US$30
million RCF, both of which maturing in 2018. The outlook on all
the ratings is stable.
Moody's issues provisional ratings in advance of the final sale
of securities. Upon closing of the transaction and a conclusive
review of the final documentation, Moody's will endeavor to
assign definitive ratings. A definitive rating may differ from a
provisional rating.
Ratings Rationale
-- UPGRADE OF THE CFR AND PDR --
The upgrade of the CFR follows the announcement by CWT of its
planned debt refinancing as well as CWT's significantly improved
operating performance over the past two years. This refinancing
comprises the issuance of US$850 million in new senior secured
notes, together with the use of around US$47 million in existing
cash on the balance sheet, to fully repay its existing debt
instruments. As part of the debt refinancing, CWT will also enter
into a new US$100 million secured RCF, split into (i) a US$70
million tranche made available to non-US entities (ii) a US$30
million for its US entities, both maturing in 2018.
After the contemplated refinancing, CWT's liquidity profile will
be adequate, with around US$91 million in cash (unrestricted) on
the balance sheet and no maturing financial debt until 2019.
However, Moody's expects that CWT will be reliant upon its credit
facility to finance peaks in working capital.
Prior to the refinancing announcement, CWT's CFR was already
strongly positioned in the B2 rating category, with the company
having demonstrated an adjusted debt/EBITDA leverage ratio of
below 4.5x over three consecutive quarters, which is the target
set for an upgrade of the CFR to B1. This strong leverage ratio
reflected CWT's steadily improving operating performances.
Although the performance of the business travel segment remains
uncertain for 2012, Moody's believes that CWT's B1 rating could
withstand a moderate decline in the operating environment
provided that the company pursues a prudent financial policy
going forward and does not seek a further gearing of its balance
sheet. Moody's notes positively that CWT has introduced a leaner
cost structure over the past two to three years, including
greater flexibility over staff levels, which is the largest
contributor to its cost base.
CWT's B1 CFR is supported by (i) its position as a leading global
travel services provider; (ii) a substantial and well-diversified
customer base that benefits from a high level of client retention
(96% in 2011); and (iii) its ability to maintain margins in an
aggressively competitive environment for the business travel
sector. The highly cyclical nature of the industry -- given the
correlation of its performance with GDP growth and business
travel activity -- is a constraint on the rating.
-- (P)Ba1 RATING ASSIGNED TO SENIOR SECURED REVOLVING CREDIT
FACILITY --
Moody's understands that the US$100 million RCF will be split
into (i) a US$70 million tranche made available to non-US
entities; (ii) a US$30 million tranche for the US entities.
Moody's also understands that the non US-tranche will benefit
from (i) guarantees by operating subsidiaries representing more
than 80% of EBITDA (including US and non-US entities); and (ii)
asset security in the US, UK, Canada and Australia. Guarantees
and security for the US tranche will be limited to (i) upstream
guarantees and security over material US operating subsidiaries
and holding companies, (ii) guarantees from top level holding
companies, and (iii) a 65% share pledge over certain holding
companies outside the US. The US tranche will not benefit from
guarantees or security from operating entities outside the US.
-- (P)B1 RATING ASSIGNED TO SENIOR NOTES --
The proposed US$850 million of notes will have a similar
guarantor and security package as the US tranche of the RCF,
except that the notes will benefit from a 100% share pledge of
the immediate parent company of the notes issuer. The (P)B1
rating on the new 2019 notes, at the same level as the CFR, is a
reflection of the amount of debt ranking ahead of the notes in
CWT's capital structure. Assuming that CWT does not draw on the
RCF on a permanent basis, Moody's does not consider this amount
to be substantial enough to warrant a notching of the notes.
Moody's understands that the proposed US$850 million of senior
secured notes will be contractually subordinated with respect
proceeds of collateral to both tranches of the RCF. Moody's
notes, however, that the amount of EBITDA represented by the
guarantors to the notes is relatively low at 38.9% of EBITDA.
The stable outlook on the ratings reflects Moody's expectation
that, despite the uncertain operating environment for the
business travel segment in 2012, CWT will continue generating
strong cash flows and, if necessary, further consolidate its cost
base in the case of a pronounced downturn in the global economy.
Moreover, the stable outlook incorporates Moody's assumption that
CWT will pursue a prudent financial policy that balances the
interests of debtholders with those of shareholders. In
particular, the outlook reflects an underlying assumption that
the balance sheet will not be levered up following a more
aggressive financial policy due to significant acquisitions or
shareholder distributions.
WHAT COULD CHANGE THE RATING UP/DOWN
Further upward pressure on the ratings could develop if (i)
leverage, measured by adjusted debt/ EBITDA, were to trend
towards 3.5x on a sustainable basis; and (ii) the ratio of free
cash flow (FCF)/debt were to approach the high single digits in
percentage terms.
Negative rating pressure could develop if a deterioration in
CWT's operating performance were to trigger an erosion in the
company's profit and margins such that debt/EBITDA were to rise
above 4.5x for a prolonged period of time. In addition, Moody's
would regard as credit negative a material deterioration in the
company's liquidity position or a sizeable debt-funded
acquisition.
The methodologies used in these ratings were Global Business &
Consumer Service Industry Rating Methodology published in October
2010, and include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in
June.
Headquartered in the Netherlands, Carlson Wagonlit B.V. is a
global leader in travel management serving corporations of all
sizes and government institutions. It reported net revenues of
US$1.86 billion in FY2011.
LEOPARD CLO V: S&P Raises Rating on Class R Comb Notes to 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Leopard CLO V B.V.'s class VFN, A, B, C-1, C-2, D, and R Comb
notes. "At the same time, we have affirmed our ratings on the
class E-1, E-2, and F notes," S&P said.
"The rating actions follow our assessment of the transaction's
performance, and the 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 Feb. 29, 2012), 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 decline in the proportion
of assets that we consider to be rated in the 'CCC' category
('CCC+', 'CCC', and 'CCC-') and an increase in the proportion of
defaulted assets (rated 'CC', 'SD' [selective default], and 'D')
in the collateral pool, since we last reviewed the transaction,"
S&P said.
"The par value tests are in compliance with their minimum
requirement triggers, as was the case during our last review.
With a shorter weighted-average life and some degree of positive
rating migration in the collateral pool, the scenario default
rates have reduced at each rating level since our previous
review. We have also noted an increase in the weighted-average
spread earned on Leopard CLO V's collateral pool," S&P said.
"We have subjected the capital structure to a cash flow analysis
to determine the break-even default rate. In our analysis, we
have 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 have 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. Our cash flow
analysis also considered scenarios where the derivative
counterparty does not perform, as the transaction documents
reflect downgrade provisions in line with our previous
counterparty criteria and, as a result, the transaction is
exposed to greater exchange rate risk," S&P said.
"Taking into account our credit and cash flow analyses, and our
2010 counterparty criteria, we consider the credit enhancement
available to the class VFN, A, B, C-1, C-2, D, and R Comb notes
in this transaction to be commensurate with higher ratings than
we previously assigned. We have therefore raised our ratings on
these classes of notes. We have also affirmed our ratings on the
class E-1, E-2, and F notes, as we consider the credit
enhancement available to these notes to be commensurate with
their current ratings," S&P said.
"None of our ratings on the notes 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)," S&P said.
Leopard CLO V 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 Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com/1111576.pdf
RATINGS LIST
Class Rating
To From
Leopard CLO V B.V.
EUR430 Million Floating- and Fixed-Rate Notes
Ratings Raised
VFN AA- (sf) A+ (sf)
A AA- (sf) A+ (sf)
B A+ (sf) BBB+ (sf)
C-1 BBB- (sf) BB+ (sf)
C-2 BBB- (sf) BB+ (sf)
D BB- (sf) B+ (sf)
R Comb BB+ (sf) B+ (sf)
Ratings Affirmed
E-1 CCC (sf)
E-2 CCC (sf)
F CCC- (sf)
PALLAS CDO II: S&P Raises Rating on Class Q Combo Notes to 'B+'
---------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on Pallas CDO II B.V.'s outstanding EUR397.46 million
notes (amount excluding combination notes).
Specifically, S&P has:
* Lowered and removed from CreditWatch negative its ratings on
the class A-1-a, A-1-d, A-2, and B notes;
* Raised and removed from CreditWatch negative its ratings on
class C, D-1-a, D-1-b notes, and the class Q combination
notes; and
* Affirmed its ratings on class P and R combination notes.
Pallas CDO II is a cash flow collateralized debt obligation (CDO)
of primarily European asset-backed securities transaction.
The transaction currently has three classes of combination notes,
which comprise:
* Class P: EUR4.5 million and EUR1.6 million principal amount
of class C and subordinated notes, respectively;
* Class Q: EUR12.0 million and EUR8.0 million principal amount
of class D-1-b and subordinated notes, respectively; and
* Class R: EUR4.0 million and EUR1.0 million principal amount
of class C and subordinated notes, respectively.
The rating actions follow:
* "Our cash flow and credit analysis, based on the application
of our updated criteria for CDOs of pooled structured finance
assets," S&P said.
* "Our observation of collateral par deterioration," S&P said.
* "Our assessment of reduced risk of liquidation or
acceleration of the transaction in lower ratings scenarios,"
S&P said.
"We subjected the capital structure to a cash flow analysis,
based on the updated methodology and assumptions outlined in our
criteria, to determine the break-even default rate (BDR) for each
rated class of notes at each rating level. At the same time, we
conducted a credit analysis based on our updated assumptions, to
determine the scenario default rate (SDR) at each rating level,"
S&P said.
"Our analysis shows that the SDRs have risen for the class A-1-a,
A-1-d, A-2, and B notes since our previous review of the
transaction in March 2011. At the same time, the BDRs have
decreased, due both to the application of our updated criteria,
and the loss of about EUR17 million of collateral par. The new
SDR and BDR levels indicate to us that the current credit
enhancement levels available to these notes are no longer
commensurate with their previous rating levels. Accordingly, we
have lowered and removed from CreditWatch negative our ratings on
these notes," S&P said.
"We also note that the class A par value ratio has increased to
114.23% from 108.86% since our previous review of the
transaction, and it is now above its effective date level.
Therefore, we consider that the risk of liquidation or
acceleration of the transaction in lower rating scenarios has
become remote since our previous reviews of the transaction. As
such, we have raised our ratings on the class C, D-1-a, and D-1-b
notes," S&P said.
"The class Q combination notes have received distributions of
EUR1.52 million since our previous review. We subjected the class
Q combination notes to our cash flow and credit analysis.
Additionally, our analysis indicates that the risk of liquidation
or acceleration of the transaction is remote in class Q
combination rating scenarios. Based on these factors, we have
raised our rating on the class Q combination notes to 'B+ (sf)',"
S&P said.
"The class P and R combination notes have received distributions
of EUR0.11 million and EUR0.98 million since our previous review.
Based on our analysis, we consider that the credit enhancement
levels available to these notes remain commensurate with their
current ratings. We have therefore affirmed our ratings on these
notes," S&P said.
"None of the ratings was affected by either the largest obligor
default test or the largest industry default test -- two
supplemental stress tests in our criteria for CDOs of pooled
structured finance assets," 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 Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com/1111576.pdf
RATINGS LIST
Class Rating
To From
Pallas CDO II B.V.
EUR498. 6 Million Senior Secured Fixed- and Floating-Rate Notes
Ratings Lowered and Removed From CreditWatch Negative
A-1-a A (sf) AA (sf)/Watch Neg
A-1-d A (sf) AA (sf)/Watch Neg
A-2 BBB+ (sf) A+ (sf)/Watch Neg
B BBB (sf) A- (sf)/Watch Neg
Ratings Raised and Removed From CreditWatch Negative
C BBB- (sf) BB+ (sf)/Watch Neg
D-1-a BB (sf) BB- (sf)/Watch Neg
D-1-b BB (sf) BB- (sf)/Watch Neg
Q Combo B+ (sf) CCC+ (sf)/Watch Neg
Ratings Affirmed and Removed From CreditWatch Negative
P Combo BBB- (sf) BBB- (sf)/Watch Neg
R Combo BBB- (sf) BBB- (sf)/Watch Neg
=============
R O M A N I A
=============
PIC SA: Succes Takes Over Pic Hypermarkets
------------------------------------------
Simona Bazavan at Business Review reports that four of the
insolvent Pic hypermarkets, will be taken over by Succes, a
retail network owned by businessman Nicolae Sarcina from Gorj.
Business Review relates PwCRomania, Pic's judicial administrator,
has announced that the stores will be bought in monthly
installments over the next 3 years.
According to the report, PwC said Pic has already rented its
stores in Pitesti and Craiova and reopened them under the Succes
brand. The report says the hypermarkets in Oradea and Calarasi
will be reopened soon under the Success brand, while the
hypermarket in Braila, which was not part of the current
transaction, might be reopened later on, under the Succes brand,
or a different one.
The report notes that the plan allows for the complete recovery
of all the debts owned by PIC towards its former employees and
towards the state budget. Also, the plan provides the main
creditors a complete recovery of all their debt covered with real
guarantees, while ensuring unguaranteed creditors a 7% recovery
rate.
The Pic hypermarkets, which are owned by businessmen Ilie and
Cornel Penescu, entered insolvency in November 2009, after
acquiring debts worth EUR76 million.
===========
R U S S I A
===========
NURBANK JSC: Moody's Issues Summary Credit Opinion
--------------------------------------------------
Moody's Investors Service issued a summary credit opinion on JSC
Nurbank and includes certain regulatory disclosures regarding its
ratings. The release does not constitute any change in Moody's
ratings or rating rationale for JSC Nurbank.
Moody's current ratings on JSC Nurbank are:
Senior Unsecured (domestic currency) ratings of B3
Long Term Bank Deposits (domestic and foreign currency) ratings
of B3
Bank Financial Strength ratings of E+
Short Term Bank Deposits (domestic and foreign currency) ratings
of NP
Rating Rationale
The B3/NP/E+ ratings assigned to JSC Nurbank are constrained by
(i) a weak operating and regulatory environment; and (ii) the
bank's fragile asset quality and high risk concentrations on both
sides of the balance sheet. Moreover, the bank's corporate
governance practices are still developing and Moody's is
concerned that the level of related-party transactions may be
underestimated in the bank's reporting. At the same time, the
ratings are underpinned by its latest capital injection that
improved its capitalization and by the bank's relatively
developed franchise in Kazakhstan, with a good branch network.
All the bank's ratings carry a stable outlook.
Rating drivers
- Weak operating and regulatory environment
- High concentrations of credit and liquidity risks and weak
corporate governance practices
- Enhanced capital position that was supported by a new
shareholder in early 2011
- Weak cash generation capacity, which undermines the bank's
ability to replenish its capital independently
Rating Outlook
All the bank's ratings carry a stable outlook.
What Could Change the Rating - Up
Nurbank's ratings have limited upward potential in the medium
term. Any revision of the outlook to positive from stable would
require a notable strengthening of the bank's asset quality and
sustainable reductions in risk concentrations in both assets and
liabilities.
What Could Change the Rating - Down
Negative pressure could be exerted on Nurbank's ratings from a
significant decline in liquidity or a substantial deterioration
of the bank's asset quality. Any discovery of significant levels
of related-party transactions may also lead to a downward
reassessment of the bank's ratings.
The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Global Methodology published in March 2012.
X5 RETAIL: S&P Affirms 'B+' Corp. Credit Rating; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on X5 Retail Group N.V. and assigned its
'B+' long-term corporate credit rating to OOO X5 Finance, the
finance subsidiary of X5 Retail Group N.V. (B+/Stable/--). The
outlook on both entities is stable.
"We assigned a '3' recovery rating to X5 Finance's existing
Russian ruble (RUB) 9 billion and RUB8 billion unsecured notes
due 2014 and 2016. The 'B+' issue ratings on these notes were
affirmed and removed from CreditWatch with negative implications,
where they were placed on Feb. 10, 2011," S&P said.
"The 'B+' issue ratings on the bonds reflect the 'B+' issuer
credit rating and our '3' recovery rating," S&P said.
"We equalize the rating on OOO X5 Finance with that on the
ultimate parent X5 Retail Group because we see the likelihood
that X5 Retail Group would provide parental support to X5 Finance
as 'high'. Our view is underpinned by X5 Retail Group's
guarantees on all the debt of X5 Finance; the finance
subsidiaries' close association with X5 Retail Group and risk of
limiting X5 Retail Group's financial markets access if one of
them were to default; X5 Retail Group's 100% indirect ownership
and full management control of the financial subsidiary; and a
cross-default clause with X5 Finance's bilateral and syndicated
loans," S&P said.
"The suretyship prepared in accordance with the Russian law and
provided by X5 Retail Group N.V. for the bonds issued by X5
Finance doesn't fully meet our criteria on guarantees, in our
view. The rating on X5 Retail Group N.V., which owns Russia's
largest grocery retail network, reflects what we see as the
group's aggressive growth strategy and financial policy and
exposure to a volatile emerging market economy. Standard & Poor's
does not factor into the rating major unforeseen debt-financed
acquisitions or changes to shareholder remuneration," S&P said.
=====================================
S E R B I A & M O N T E N E G R O
=====================================
ZELJEZARA AD: Tosyali Acquires Business for EUR15.1 Million
-----------------------------------------------------------
Misha Savic at Bloomberg News reports that Toscelik Profil Ve Sac
Endustrisi AS won an auction to buy Zeljezara AD Niksic, paying
EUR15.1 million (US$20 million) for the unprofitable company.
According to Bloomberg, Montenegro's Economy Minister Vladimir
Kavaric said in a statement on the government's Web site on
Monday that Toscelik, part of Tosyali Holding, bought the Niksic-
based mill after four previous auctions failed.
Zeljezara's court-appointed receivership administration set the
asking price at EUR15 million in the latest auction, half of what
it asked in January, Bloomberg discloses.
The company was put into bankruptcy a year ago when a workers
union demanded overdue wages, Bloomberg recounts.
Zeljezara AD Niksic is a Montenegrin steel plant.
=====================
S W I T Z E R L A N D
=====================
PETROPLUS HOLDINGS: Says Investor Appeal May Delay Delisting
------------------------------------------------------------
Reuters reports that insolvent oil refiner Petroplus cautioned
that the swift delisting of its shares may hit a snag if the
appeal of an undisclosed shareholder is backed by the Swiss
bourse.
"The appeals board of the SIX Swiss Exchange has not yet decided
if it will hear the appeal. The last day of trading might be
deferred by up to six weeks if the appeal is heard," Petroplus
said in a statement late on Friday, according to Reuters.
The Troubled Company Reporter-Europe, citing Dow Jones Newswires,
reported on Feb. 27, 2012, that Petroplus said French and
German courts appointed administrators to handle their units
after the company filed for protection from creditors after
running out of cash. A French prosecutor was investigating
whether there was wrongdoing in the insolvency process, Dow Jones
said.
Based in Zug, Switzerland, Petroplus Holdings AG is Europe's
largest independent oil refiner.
===========================
U N I T E D K I N G D O M
===========================
ANGLIAN WATER: Moody's Issues Summary Credit Opinion
----------------------------------------------------
Moody's Investors Service issued a summary credit opinion on
Anglian Water Services Ltd (AWS) and its rated affiliates and
includes certain regulatory disclosures regarding their ratings.
The release does not constitute any change in Moody's ratings or
rating rationale for Anglian Water Services Ltd and its
affiliates.
Moody's current ratings on Anglican Water Services Ltd and its
affiliates are:
Long Term Corporate Family ratings of Baa1
Anglian Water Services Financing plc
BACKED Subordinate ratings of Baa3
BACKED Senior Secured ratings of A3
Anglian Water (Osprey) Financing plc
BACKED Senior Secured ratings of Ba3
Ratings Rationale
Moody's maintains a corporate family rating (CFR) of Baa1 with
stable outlook on AWS reflecting (i) the company's low business
risk profile as the monopoly provider of essential water and
sewerage services; (ii) stable returns under a transparent and
predictable regulatory framework; (iii) a high level of gearing;
and (iv) the creditor protections incorporated within the
company's financing structure.
A corporate family rating is an opinion on the expected loss
associated with a company's financial obligations assuming that
it has a single class of debt and is a single consolidated legal
entity. The Baa1 CFR is in line with the corporate family ratings
assigned in two of the three comparable transactions in the UK
water sector, Thames Water and Yorkshire Water, and one notch
above that for Southern Water (the latter was downgraded in July
2011). Like its peers, AWS's credit quality is constrained by the
expectation that the company will maintain a highly leveraged
financial structure and by its exposure to refinancing risk, i.e.
dependence upon continued market access to fund ongoing capital
expenditure and the risk of adverse financial market conditions
that may prevent AWS from funding its large capex program or
refinancing its debt on reasonable terms. The rating consolidates
the legal and financial obligations of AWS, AWSF (a financing
subsidiary), Anglian Water Services Overseas Holdings Limited and
Anglian Water Services Holdings Limited (the latter two being
holding companies), which together constitute the ring-fenced AWS
Financing Group as defined under the terms and conditions of the
MTN programme (the AWS Programme) and factors in the associated
structural enhancements.
The A3 rating of the Class A Bonds issued under the AWS Programme
reflects the strength of the debt protection measures for this
class of bonds and other pari passu indebtedness (together, the
Class A Debt), the senior position in the cash waterfall and post
any enforcement of security. The rating also, however, factors in
the subordinated Class B Debt (Class B Bonds and other pari passu
debt) which, whilst it is contractually subordinated, serves to
reduce the operator's financial flexibility. Downgrade or default
of the Class B Debt could have an impact on the viability of the
company's funding model as a whole since the inability to raise
additional Class B Debt in the future could undermine the capital
structure and affect the credit quality of the senior debt.
The Baa3 rating of the Class B Bonds reflects the same default
probability as factored into the rating of the Class A Debt but
also Moody's expectation of a heightened loss severity for the
Class B Debt following any default, given its subordinated
position.
The Ba3 rating assigned to the GBP350 million notes issued by
Osprey (a holding company for AWS)(the Osprey Notes), reflects
(i) the rating drivers cited above for AWS; (ii) forecast debt at
Osprey of up to 8% of AWS's Regulatory Capital Value (RCV) and
consolidated gearing of up to 93% of RCV (at dividend lock-up);
(iii) structural features included in the AWS Programme which
limit the activities of the operating company but may also
deprive Osprey of dividend income that will ordinarily be used to
meet debt service; and (iv) the terms of the Osprey Programme.
WHAT COULD CHANGE THE RATING UP/DOWN
AWS and AWSF
The stable outlook on the ratings reflects Moody's expectation
that AWS's financing structure should be relatively resilient to
downside scenarios due to the cash trapping triggers designed to
ensure that cash is retained in the company if certain ratio
thresholds are breached. Such cash could then be used to absorb
the effect of possible downsides. Given the company's funding
structure and Moody's expectation that AWS will likely maintain
leverage over the current regulatory period (April 2010 to March
2015 -- AMP5) close to the maximum level permitted by its
financial covenants there will be limited potential for an
upgrade of its ratings. Upward rating pressure would require a
material and permanent improvement in debt protection measures.
Conversely, negative pressure on AWS's ratings could derive from:
* Unexpected, severe deterioration in operating performance
that results in the company remaining persistently in breach of
the distribution lock-up triggers.
* A material change in the regulatory framework for the UK
water sector leading to a significant increase in AWS's business
risk.
Osprey
The stable outlook on the Osprey Notes reflects Moody's view that
they are reasonably resilient to downside sensitivities. Given
the high leverage at AWS, the additional debt at Osprey and
Moody's expectation that there will be only limited de-leveraging
over the life of the Notes, there will be little potential for an
upgrade. The factors cited above that would result in negative
pressure on AWS's ratings would likely also impact the rating of
the Osprey Notes. In addition, under the terms of the AWS
Programme, there is a distribution lock-up at the operating
company if (i) Class A RCV gearing or Senior (Class A and Class
B) RCV gearing exceeds 75% or 85% respectively; or (ii) Class A
Adjusted Interest Cover Ratio (ICR) or Senior Adjusted ICR falls
below 1.30x or 1.10x respectively. A material deterioration in
these financial metrics, compared to forecasts and such that the
trigger levels appeared more likely to be breached, would result
in negative rating pressure.
The principal methodology used in these ratings was Global
Regulated Water Utilities published in December 2009.
BANK OF BARODA: Moody's Issues Summary Credit Opinion
-----------------------------------------------------
Moody's Investors Service issued a summary credit opinion on Bank
of Baroda (London) and includes certain regulatory disclosures
regarding its ratings. The release does not constitute any
change in Moody's ratings or rating rationale for Bank of Baroda
(London).
Moody's current ratings on Bank of Baroda (London) are:
Senior Unsecured (foreign currency) ratings of Baa2
Senior Unsecured MTN Program (foreign currency) ratings of
(P)Baa2
Subordinate (foreign currency) ratings of Baa3
Subordinate MTN Program (foreign currency) ratings of (P)Baa3
Junior Subordinate MTN Program (foreign currency) ratings of
(P)Ba1
Rating Rationale
Moody's Investors Service has affirmed Bank of Baroda's (BOB)
deposit and debt ratings, with a stable outlook.
Bank of Baroda's Baa3/P-3 foreign currency deposit ratings are
constrained by the sovereign ceiling for foreign currency
deposits. The foreign currency debt ratings are assigned to the
London branch of BOB, which issues debt under its medium-term
notes program.
Moody's has also affirmed the bank's D+ bank financial strength
rating (BFSR), mapping to a baseline credit assessment (BCA) of
ba1, with a stable outlook.
The affirmation of BOB's deposit and debt ratings, and stable
outlook, reflects the bank's significant franchise with growing
market share, comfortable asset quality, as well as its strong
liquidity position and income profiles.
Bank of Baroda's profitability indicators are strong, and compare
well with other Baa2-rated public-sector banks. At end-March
2011, its recurring earnings power (pre-provision income/average
risk weighted assets) was strong at 3.8%, and the return on
average risk-weighted assets was also strong at 2.32%.
The bank's earnings profile has been maintained in the six-month
period, ending September 2011.
After factoring in the advantages of cost efficiency and stable
fee income, and despite pressures on net interest margins due to
an increase in the costs of funds, strong recurring earnings
should continue.
The possible downside to this expected scenario could emerge if
the bank suffers significant asset quality or franchise
deterioration, but which Moody's does not believe is likely.
Asset quality indicators are stable, and compare well with other
Baa2-rated public-sector banks. Its gross non-performing loan
(NPL) ratio was stable at 1.4% at end-September 2011 (1.36% at
end-March 2011), and net NPLs were below 0.5%.
Provisioning cover is adequate at 66%, although it has declined
from 75% at end-March 2011. The bank's credit portfolio is well-
diversified, with no individual sector exceeding 6% of total
credit exposures.
Over the next few quarters, given the challenges in its operating
environment and expected vulnerability in the infrastructure
portfolio (power and telecom), the bank's asset quality
indicators could experience some deterioration. However, Moody's
does not expect this deterioration to be strong enough to
negatively impact the ratings.
The bank's capitalization levels improved at end-March 2011,
driven by strong internal capital generation and an equity
infusion of INR24.61 billion from the Indian government. The
bank's core Tier 1 capital ratio is adequate at 8.5%, enabling it
to grow further and to meet the proposed draft Basel III
guidelines. The bank also expects to receive another equity
infusion in FY2012, which would take the government's share to
58% from its current 57%.
Bank of Baroda has adequate liquidity, driven by its strong
retail franchise and mandatory government securities portfolio.
Its liquidity position is comparable to other Baa2-rated Indian
public-sector banks.
Rating Outlook
All BOB's ratings carry a stable outlook.
What Could Change the Rating - Up
The bank's D+ BFSR could be upgraded if it reduces its annual
non-performing loan (NPL) formation rate to below 1%, and
strengthens its core Tier 1 capital to over 10%. The supported
ratings -- Baa2 senior debt and Baa2/P-2 local currency deposit
rating -- are already at the country ceilings. The constrained
Baa3/P-3 foreign currency deposit rating would be upgraded if the
country ceiling were revised upwards.
What Could Change the Rating - Down
The bank's BFSR is at the lower end of D+, which indicates that
its asset quality, capitalization, and profitability indicators
have a comfortable cushion. However, if the bank were to face
significant deterioration in its capitalization levels or asset
quality, its BFSR could come under pressure. The supported
ratings -- Baa2 senior debt ratings, Baa3 subordinated debt, and
(P)Ba1 junior subordinated debt program -- could be lowered if
the support assumptions on these debt instruments changed.
The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: Global Methodology published in March 2012.
CAITHNESS BEEF: In Administration on Rising Costs
-------------------------------------------------
business7.co.uk reports that Caithness Beef and Lamb has been
placed into administration due to intense competition and rising
costs within the meat slaughtering and processing sectors blamed.
The report relates that it has never gone into full production,
having only operated trial production runs to date.
Iain Fraser and Tom MacLennan of RSM Tenon are named as joint
administrators.
business7.co.uk discloses that a spokesman for the administrators
said as such it would be "a handful" of employees who may be
affected in the administration process.
The administrators hope the facility will attract interest from
Europe's farming and food processing industries, the report
notes.
Caithness Beef and Lamb is a meat processing plant. The GBP4
million, 1300 sq. metre production facility in Wick has
processing and packaging facilities, an abattoir, offices and
storage facilities.
CITY SITE: Collapses Into Administration
----------------------------------------
The Scotsman reports that City Site Estates collapsed into
administration as the high debts run up by commercial property
players continue to rock the sector.
Union Estates, City's holding company, warned last year that it
had breached some of its loan covenants and in February four of
its London properties were placed in receivership, according to
The Scotsman. The report discloses that City Site and four of
its sister businesses were put into either administration or
receivership.
City Site Estates is a Glasgow-based firm run by property grandee
Louis Goodman. One of the firms, Saltire Leisure, owns Dundee's
Holiday Inn Express hotel, while the other companies have sites
in Glasgow and London. City was setup by Goodman and his father,
Nathaniel, in 1973 and was listed in London from 1981 to 1999.
HBOS: KPMG May Face Formal Probe Over Bail-Out
----------------------------------------------
Helia Ebrahimi at The Telegraph reports that accountancy giant
KPMG could face a formal investigation by the UK's accountancy
watchdog for its conduct leading up to the rescue of HBOS by
Lloyds TSB.
HBOS whistleblower and former head of risk, Paul Moore, has
referred KPMG to the regulator in a formal complaint, the
Telegraph discloses. Mr. Moore has also written to Treasury
select committee chairman Andrew Tyrie, seeking his support, the
Telegraph relates.
According to the Telegraph, Mr. Tyrie confirmed the Treasury
select committee would be looking at any correspondence from
Mr. Moore. He also said the committee continued to press for a
full FSA report into HBOS, the Telegraph notes.
For KPMG, the complaint could be the first time it has faced the
Financial Reporting Council (FRC) over the work it did leading up
to the bail-out of the HBOS, the Telegraph says. KPMG both
audited and carried out special reports for HBOS, the Telegraph
discloses.
Any investigation is likely to focus on the responsibilities
auditors have to ensure they don't breach conflicts of interests
and are skeptical enough about the information they audit,
according to the Telegraph.
HBOS plc is a banking and insurance company in the United
Kingdom, a wholly owned subsidiary of the Lloyds Banking Group
having been taken over in January 2009. It is the holding
company for Bank of Scotland plc, which operates the Bank of
Scotland and Halifax brands in the UK, as well as HBOS Australia
and HBOS Insurance & Investment Group Limited, the group's
insurance division. The group became part of Lloyds Banking
Group through a takeover by Lloyds TSB January 19, 2009.
INTERNATIONAL POWER: S&P Lifts Sr. Sec. Debt Rating From 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on U.K.-based international power producer
International Power PLC (IPR) to 'A' from 'BBB-'. "At the same
time, we raised the issue rating on IPR's senior unsecured debt
to 'A-' from 'BB+', and removed both ratings from CreditWatch
with positive implications, where we placed them on April 10,
2012. The outlook is stable," S&P said.
"The rating action follows the completion of our review on IPR's
links to and degree of integration within France-based multi-
utility GDF SUEZ, which owns 70% of IPR, and has offered to buy
the remaining 30%. The offer has been accepted by all IPR's
independent board members, but remains subject to the approval of
IPR's minority shareholders," S&P said.
"We now see IPR as GDF SUEZ's core international energy business
unit. We consider IPR, which accounted for 26% of the utility's
2011 EBITDA, to be an integral part of GDF SUEZ and the pillar of
its strategy, which aims to find growth opportunities outside
mature European markets," S&P said.
"Although it is currently included in a separate U.K.-listed
entity as a result of the reverse takeover of IPR in 2011, we
consider IPR to be fully integrated into GDF SUEZ's operations,
strategy, control, and management. IPR is especially well
integrated into its parent's liquidity, financing, and risk
management policies. Consequently, we equalize the ratings on IPR
with those on GDF SUEZ, in line with our parent-subsidiary
criteria," S&P said.
"We see IPR's business risk profile as 'satisfactory,' as our
criteria define the term, supported by its leading position as a
global power producer, sizable and diversified asset base, and
increasing focus on contracted assets. These strengths are partly
offset by evidence of project risk, in particular for highly
complex generation assets, and by the exposure to emerging
economies' country risks. Furthermore, the high level of minority
interests in the main projects reduces control over cash flow and
introduces cash leakage," S&P said.
"We understand that GDF SUEZ's minority buyout involves the
potential conversion into equity of notes issued by IPR finance
vehicles International Power Finance (Jersey) II Ltd.,
International Power Finance (Jersey) III Ltd., and International
Power Finance (Jersey) Ltd.," S&P said
"We continue to see the senior unsecured debt issued or
guaranteed by IPR as structurally subordinated to debt issued at
the operating company level, mainly significant amounts of
project finance debt. This includes the senior unsecured notes
issued by another IPR finance vehicle International Power Finance
(2010) PLC, as well as the convertible notes," S&P said.
The stable outlook on IPR mirrors that on GDF SUEZ.
"It also factors in our assumption that IPR will remain a key
operating unit of the GDF SUEZ group. Any rating action we might
take on GDF SUEZ, including an outlook revision, would lead to a
simultaneous and identical change on the ratings and outlook on
IPR. We might also consider a negative rating action on IPR if
its core position in the GDF SUEZ group weakened," S&P said.
PREFERRED RESIDENTIAL 05-1: S&P Lowers Class D1c Rating to 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on Preferred Residential Securities 05-1 PLC (PRS 05-1),
Preferred Residential Securities 05-2 PLC (PRS 05-2), and
Preferred Residential Securities 06-1 PLC (PRS 06-1).
"Our analysis reflects our December 2011 U.K. residential
mortgage-backed securities (RMBS) criteria. In addition, we have
applied our 2010 counterparty criteria, given our recent
downgrades of the transaction counterparties," S&P said.
"On Dec. 12, 2011, we placed on CreditWatch negative our ratings
on all classes of notes currently rated higher than 'B- (sf)' in
PRS 05-1, PRS 05-2, and PRS 06-1, following the implementation of
our recently updated U.K. RMBS criteria," S&P said.
"Until the rating actions, the class A and B notes in PRS 05-2
and PRS 06-1 were also on CreditWatch negative following a breach
of the documented collateral-posting triggers. This was a result
of our lowering our long-term counterparty rating on the swap
counterparty, Barclays Bank PLC, to 'A+' from 'AA-' on Nov. 29,
2011," S&P said.
PRS 05-1, PRS 05-2, and PRS 06-1 are U.K. nonconforming RMBS
transactions originated by Preferred Mortgages Ltd. Half of the
borrowers in each transaction are classified as "self-certified"
borrowers.
"Credit enhancement has increased for all rating levels in all
three transactions, due to deleveraging of the pool. All three
transactions are currently paying sequentially, as 90+ day
delinquencies are greater than the pro rata trigger of 22.5%. We
have considered the possibility of this trigger being breached
and have taken into account historical arrears movements, in
order to determine when the transactions are likely to pay pro
rata. We incorporated this in our cash flow analysis," S&P said.
"In all three transactions, our updated credit adjustments give
rise to higher weighted-average foreclosure frequencies (WAFF)
and weighted-average loss severities (WALS) at each rating level-
-leading to an overall increase in the required credit
enhancement," S&P said.
"The class A and B notes in all three transactions have
sufficient levels of credit enhancement to offset the increase in
required credit coverage. We have therefore affirmed our ratings
on the class A and B notes in all three transactions," S&P said.
PRS 05-1
Total delinquencies in PRS 05-1 increased over the past year, to
39.65% from 37.34%. 90+ day arrears increased marginally by
0.39%; however, repossessions increased more significantly--by
1.14 percentage points, to 1.56%.
"The class C notes pass our cash flow scenarios at a higher
rating level, and we have therefore raised our rating on the
class C notes," S&P said.
"For the class D1c notes, however, the increase in credit
enhancement has not risen sufficiently to mitigate the increase
in required credit coverage at their current rating level, in our
cash flow scenarios where we start the recession at the beginning
of year four. We have therefore lowered our rating on this class
of notes," S&P said.
"The class E notes also have insufficient credit enhancement to
mitigate the increase in required credit coverage at their
current rating level; however, we have affirmed our 'B- (sf)'
rating on these notes, as we do not expect these notes to default
within a year," S&P said.
PRS 05-2
Total delinquencies increased over the past year in PRS 05-2, to
43.27% from 41.08%. 90+ day arrears increased by 2.5 percentage
points, to 29.17%.
"For the class D1c and E1c notes, the increase in credit
enhancement has not risen sufficiently to mitigate the increase
in required credit coverage at their current rating levels. We
have therefore lowered our ratings on the class D1c and E1c
notes," S&P said.
PRS 06-1
Total delinquencies increased over the past year, to 34.70% from
33.95%. 90+ day arrears increased marginally, by 0.8 percentage
points to 22.93%.
"The class C notes pass our cash flow scenarios at a higher
rating level. We have therefore raised our rating on these
notes," S&P said.
"For the class D1c and E1c notes, however, the increase in credit
enhancement has not risen sufficiently to mitigate the increase
in required credit coverage at their current rating levels. We
have therefore lowered our ratings on these classes of notes,"
S&P said.
"We have raised our rating on the class ETc notes, as we expect
them to be paid down on the next couple of interest payment dates
via excess spread. We have also affirmed our 'CCC (sf)' rating on
the class FTc notes, as they are deferrable-interest notes that
are subordinated to the ETc notes," S&P said.
COUNTERPARTIES
"The currency swap documentation in all three transactions
reflects our 2003/2004 counterparty criteria (now archived).
Under our current counterparty criteria, the highest potential
rating that the notes can achieve is equal to the issuer credit
rating on the swap counterparty (or swap guarantor) plus one
notch," S&P said.
For PRS 05-1, the swap guarantor is Swiss Reinsurance Co. Ltd.
(AA-/Stable/A-1+); therefore, the highest potential rating in
this transaction is 'AA'.
"For PRS 05-2 and PRS 06-1, the swap counterparty is Barclays
Bank PLC (A+/Stable/A-1). We have received confirmation that the
swap counterparty is posting collateral, following the breach of
the documented collateral-posting trigger; therefore, we have
removed the class A and B notes from CreditWatch negative for
counterparty reasons for these two transactions. The highest
potential rating in these transactions is 'AA-'," S&P said.
"On Nov. 29, 2011, we lowered our long-term counterparty rating
on Barclays Bank, the bank account provider in all three
transactions, to 'A+' from 'AA-'. Since then, Barclays Bank has
breached its documented replacement trigger of 'A-1+' in the bank
account agreement. We have received a definitive plan from
Barclays Bank to update the replacement trigger and to strengthen
the replacement timeframe to comply with our 2010 counterparty
criteria. If the documentation is not amended, this may lead to
downgrades in all three transactions, as the highest potential
rating that the notes in these transactions could then achieve
would be 'A+'," S&P said.
CREDIT STABILITY
"Our credit stability analysis indicates that the maximum
projected deterioration that we would expect at each rating level
for time horizons of one year and three years under moderate
stress conditions, are in line with our credit stability
criteria," 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 Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com/1111576.pdf
RATINGS LIST
Class Rating
To From
Preferred Residential Securities 05-1 PLC
EUR188 Million, GBP271.2 Million Mortgage-Backed Floating-Rate
Notes
Rating Raised and Removed From CreditWatch Negative
C1c A+ (sf) A (sf)/Watch Neg
Ratings Affirmed And Removed From CreditWatch Negative
A2c AAA (sf) AAA (sf)/Watch Neg
B1a AA (sf) AA (sf)/Watch Neg
B1c AA (sf) AA (sf)/Watch Neg
Rating Lowered and Removed From CreditWatch Negative
D1c BB- (sf) BB (sf)/Watch Neg
Rating Affirmed
E B- (sf)
Preferred Residential Securities 05-2 PLC
EUR125 Million, GBP183.85 Million, $70.5 Million Mortgage-Backed
Floating-Rate Notes
Ratings Affirmed and Removed From CreditWatch Negative
A2a AA- (sf) AA- (sf)/Watch Neg
A2c AA- (sf) AA- (sf)/Watch Neg
B1a AA- (sf) AA- (sf)/Watch Neg
B1c AA- (sf) AA- (sf)/Watch Neg
C1a A (sf) A (sf)/Watch Neg
C1a A (sf) A (sf)/Watch Neg
Ratings Lowered and Removed From CreditWatch Negative
D1c B (sf) BB (sf)/Watch Neg
E1c B- (sf) B (sf)/Watch Neg
Preferred Residential Securities 06-1 PLC
EUR107.6 Million, GBP288.432 Million, $145 Million Mortgage-
Backed Floating-Rate Notes
Ratings Raised and Removed From CreditWatch Negative
C1a A (sf) A- (sf)/Watch Neg
C1c A (sf) A- (sf)/Watch Neg
ETc BBB (sf) B (sf)/Watch Neg
Ratings Affirmed and Removed From CreditWatch Negative
A2a AA- (sf) AA- (sf)/Watch Neg
A2c AA- (sf) AA- (sf)/Watch Neg
B1a AA- (sf) AA- (sf)/Watch Neg
B1c AA- (sf) AA- (sf)/Watch Neg
Ratings Lowered and Removed From CreditWatch Negative
D1a B (sf) BB (sf)/Watch Neg
D1c B (sf) BB (sf)/Watch Neg
E1c B- (sf) B (sf)/Watch Neg
Rating Affirmed
FTc CCC (sf)
RANGERS FC: Miller Says Bid More Than Blue Knights & Kennedy's
--------------------------------------------------------------
Chris McLaughlin at BBC Scotland reports that Bill Miller's bid
for Rangers is worth significantly more than the Blue Knights and
Brian Kennedy's.
The Blue Knights' Paul Murray told BBC Scotland on Friday evening
that he believes his joint bid with Sale Sharks owner Kennedy
outbids the American's.
Both bids depend on taking the club's bond holders' debt, around
GBP7 million, out of a Company Voluntary Arrangement, BBC
Scotland notes.
But it is thought the Knights' bid uses that figure as part of
its offer, BBC Scotland states.
BBC Scotland relates that adminstrators Duff & Phelps said
"neither bid involves liquidation of the football club".
According to BBC, they added that there were "significant
differences between the two offers in terms of a prospective
return to creditors and approach to future funding and these have
to be evaluated".
Mr. Murray's bid is not only conditional on a CVA being approved;
it depends on owner Craig Whyte's 85% shareholding being
acquired, either by Ticketus, who are owed almost GBP27 million,
or the administrators, according to BBC.
About Rangers Football Club
Rangers Football Club PLC -- http://www.rangers.premiumtv.co.uk/
-- is a United Kingdom-based company engaged in the operation of
a professional football club. The Company has launched its own
Internet television station, RANGERSTV.tv. The station combines
the use of Internet television programming alongside traditional
Web-based services. Services offered include the streaming of
home matches and on-demand streaming of domestic and European
games, which include dedicated pre-match, half-time and post-
match commentary. The Company will produce dedicated news
magazine and feature programs, while the fans can also access a
library of classic European, Old Firm and Scottish Premier League
(SPL) action. Its own dedicated television studio at Ibrox
provides onsite production, editing and encoding facilities to
produce content for distribution on all media platforms.
SUSTAINABLE GROWTH: Investors Lose GBP40MM in Investment Fraud
--------------------------------------------------------------
Donia O'Loughlin at FTAdviser.com reports that some 2,000
investors may have lost around GBP40 million through investing in
an Sustainable Growth Group through 12-15 self-invested personal
pension providers.
According to FTAdviser.com, the Serious Fraud Office said it is
currently investigating the activities of the Sustainable Growth
Group, holding company for Sustainable Agroenergy and Sustainable
Wealth Investments, in connection with bio-fuel products
involving Jatropha tree plantations in South East Asia.
On February 23, FTAdviser.com recalls, the SFO obtained company
and personal bank freezing orders at Southwark Crown Court and,
at the SFO's request, the court also ordered Chantrey Vellacott
DFK to be appointed a management receiver for the companies
concerned.
The three entities entered administration on March 12. Adrian
Hyde, a partner at Chantrey Vellacott DFK, was appointed
management receiver by Southwark Crown Court on February 23.
Mr. Hyde has confirmed to FTAdviser that some 2,000 people
invested in most cases between GBP20,000 to GBP50,000 into these
investments through 12-15 Sipp providers, with the total value of
claims likely to be around GBP40 million.
Mr. Hyde added that he had been following the Financial Services
Authority's reviews into regulation of Sipp investments and that
"we can only hope that the affair will result in more stringent
controls being in place," according to FTAdviser.com.
Sustainable Growth Group promoted itself to Sipp investors as a
specialist in renewable biofuel crops and 'green oil' from Asia.
Investors were told they were purchasing hectare plots in a
Cambodian plantation of Jatropha for the production of green oil.
Mr. Hyde, as cited by FTAdviser, said the investors were
guaranteed a return of 8-12 per cent in the first year, 12-20 per
cent in the following year depending on specific agreements and
the returns for the next three years were based on anticipated
yields of 20 per cent per annum.
Investors were guaranteed a buy-back from year five onwards,
Mr. Hyde added.
A source close to the situation told FTAdviser that HM Revenue &
Customs is also investigating "as the investment allowed people
to take unauthorized payments from their pensions."
YOUNGER HOMES: Enters Into Receivership
---------------------------------------
Belfast Telegraph reports that Younger Homes has gone into
receivership after over 40 years in business.
Younger Homes last filed accounts covering the year to November
2006, which showed that the firm had assets of more than GBP11
million and liabilities of around GBP9 million, Belfast Telegraph
recounts. The receiver was appointed by Northern Bank, Belfast
Telegraph relates.
Younger Homes was established in 1964 and had employed around 200
people at its peak, Belfast Telegraph discloses.
Younger Homes is a Co Londonderry building firm.
* SCOTLAND: Corporate Insolvencies Up 37.5% in Q4 of 2011
---------------------------------------------------------
www.business-sale.com reports that the Accountant in Bankruptcy
(AiB) has found out that about 400 Scotland-based businesses have
failed so far this year.
According to www.business-sale.com, Insolvency Today reported
that a total of 385 notices of Scottish-registered firms entering
receivership or being made insolvent, were received by the AiB in
the first quarter this year.
The figure is a substantial 37.5 per cent increase on Q4 of 2011,
and a 30.9 per cent jump on the result for Q1 2011, the report
notes.
On a weekly basis this means that about 30 companies failed in
the first 13 weeks of 2012, www.business-sale.com adds.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets. At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short. Don't be fooled. Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets. A company may establish reserves on its
balance sheet for liabilities that may never materialize. The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/booksto order any title today.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland
USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T.
Fernandez, Joy A. Agravante, Ivy B. Magdadaro, Frauline S.
Abangan and Peter A. Chapman, Editors.
Copyright 2012. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
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