TCREUR_Public/120517.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

             Thursday, May 17, 2012, Vol. 13, No. 98

                            Headlines


B U L G A R I A

* BLAGOEVGRADS: Fitch Withdraws 'BB+' Long-Term Currency Ratings


C Z E C H   R E P U B L I C

SAZKA AS: Creditors to Recover Up to 20% of Claims


G E O R G I A

GEORGIAN OIL: Fitch Rates US$250-Mil. Sr. Unsecured Notes 'BB-'


G E R M A N Y

ADAM OPEL: GM Presents Restructuring Plan to Workers
CONTINENTAL AG: Fitch Upgrades LT Issuer Default Rating to 'BB'
NUERNBERGER AG: Fitch Affirms Rating on EUR100-Mil. Debt at 'BB+'
SPEYMILL DEUTSCHE: Cerberus to Buy Assets Out of Receivership
VULCAN LTD: Fitch Affirms 'Csf' Ratings on Two Note Classes


G R E E C E

* GREECE: Decides to Pay EUR435 Million Maturing Bonds
* GREECE: Names Caretaker Government Amid Bailout Talks


I R E L A N D

BHT GROUP: Premier Forest Buys Timber Unit Out of Insolvency
EIRCOM GROUP: Examiner's Survival Scheme Faces Setback
EUROCREDIT OPPORTUNITIES: Moody's Ups Rating on D Notes From Ba1
JAZZ PHARMACEUTICALS: Moody's Assigns 'Ba3' CFR; Outlook Stable
MR BINMAN: Quality Recycling Buys Remaining Parts

SOUTH COUNTY GOLF: Landlords Vow to Keep Golf Course Open


I T A L Y

EDISON SPA: Fitch Affirms 'B' Short-Term Issuer Default Rating


K A Z A K H S T A N

ATF BANK: Moody's Cuts Long-Term Debt & Deposit Ratings to 'B1'


L A T V I A

LATVIJAS KRAJBANKA: Loses Bid to Oust KMPG as Administrator


P O R T U G A L

* PORTUGAL: Fitch Withdraws Ratings on Sr. Unsec. Debt Securities


R O M A N I A

BELLEVUE RESIDENCE: Developer Seeks Insolvency at Brasov Court


R U S S I A

BANCA INTESA: Moody's Downgrades Deposit Ratings to 'Ba1'
RUSSIAN NOVOSIBIRSK: Fitch Lifts LT Currency Ratings to 'BB+'
RUSSIAN STANDARD: Fitch Assigns 'B+' Rating to RUB5BB Sr. Bonds
SUKHOI SUPERJET: SSJ 110 Crash Won't Affect Fitch's 'BB' Rating
* TAMBOV REGION: Fitch Raises Long-Term Currency Ratings to 'BB'


S L O V E N I A

PRIMORJE HOLDING: NLB Files Bankruptcy Motion


S P A I N

AYT ANDALUCIA: Fitch Affirms Rating on Class D Notes at 'BBsf'
BANKIA SA: Investors Lose About US$2 Billion in July IPO


U N I T E D   K I N G D O M

CLS & PARTNERS: Insolvency Service Winds Up Two Landbanking Firms
LUGGIE UK: Insolvency Service Winds Up Firm Amid Complaints
REGENCY COINS: High Court Winds Up Rare Coins Company
WORLDSPREADS GROUP: FSA Alerted to Fraud Prior to Administration


X X X X X X X X

* Moody's Says Bank Credit Deterioration Affects SF Securities
* Upcoming Meetings, Conferences and Seminars


                            *********


===============
B U L G A R I A
===============


* BLAGOEVGRADS: Fitch Withdraws 'BB+' Long-Term Currency Ratings
----------------------------------------------------------------
Fitch Ratings has withdrawn the Bulgarian Municipality of
Blagoevgrad's 'BB+' Long-term foreign and local currency ratings
and 'B' Short-term foreign currency rating.  The Outlooks for the
Long-term ratings were Negative.

Fitch has withdrawn the ratings as Blagoevgrad has chosen to stop
participating in the rating process.  Therefore, Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for Blagoevgrad.


===========================
C Z E C H   R E P U B L I C
===========================


SAZKA AS: Creditors to Recover Up to 20% of Claims
--------------------------------------------------
CTK, citing daily E15, reports that Sazka AS insolvency
administrator Josef Cupka said creditors of the company will gain
some 10% to 20% of the value of their claims as CZK2.8 billion to
CZK3 billion is left for them.

According to CTK, the money is to be distributed among 2,000
creditors whose claims totaling over CZK15 billion Mr. Cupka has
recognized.  The Bank of New York Mellon, to which Mr. Cupka sent
CZK567 million from the sale of the company's assets already in
March, is the only exception, CTK discloses.

Part of the claim was secured, CTK notes.

Sazka was declared bankrupt at end-May 2011, CTK recounts.

Sazka AS is a provider of lotteries and sport betting games in
the Czech Republic.


=============
G E O R G I A
=============


GEORGIAN OIL: Fitch Rates US$250-Mil. Sr. Unsecured Notes 'BB-'
---------------------------------------------------------------
Fitch Ratings has assigned JSC Georgian Oil and Gas Corporation's
(GOGC) debut US$250 million senior unsecured notes, due 2017, an
expected rating of 'BB-(exp)'.

Proceeds from the bond issue will primarily be used to fund
GOGC's capex plans notably with regard to the construction of a
planned hydroelectric power project.

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

The proposed bond features a number of protective covenants,
including:

  -- a bondholder put option in the event of a change of control
    (should the state of Georgia cease to own more than 50% of
     GOGC's shares);

  -- a negative pledge, covering both bond and bank indebtedness
     and foreign and local currency, to which certain exclusions
     apply, including project financings;

  -- a restriction on the incurrence of new debt if net
     debt/EBITDA exceeds 3.5x, using the aggregate amount of
     EBITDA for the most recent annual financial period for which
     consolidated financial statements have been delivered;

  -- a limitation on the disposal of core assets, named as the
     Main Gas Pipeline System and Western Route Export Pipeline,
     subject to a materiality threshold of 10% of core asset book
     value, but excluding the forthcoming investment in a new
     hydroelectric power plant.

GOGC's current ratings are as follows:

  -- Long-term foreign and local currency Issuer Default Ratings
     (IDRs): 'BB-'; Outlooks Stable

  -- Short-term foreign and local currency IDRs: 'B'

  -- Foreign currency senior unsecured rating: 'BB-'

The ratings are based upon the linkage of GOGC to Georgia's
sovereign rating.  GOGC's role as national energy company will
remain critical to the Georgian economy given the country's
position at a crossroads of supply between the landlocked Caspian
basin and western markets.  Management links to the government
are extremely strong and, despite plans for a minority stake sale
in future, majority state ownership is consistent with Georgia's
ongoing reform program.  Tangible financial assistance has been
advanced by the Georgian state over recent years, and the
Georgian government has underlined its commitment to continue
supporting the financial health of GOGC in its discussions with
Fitch.

Positive features in the company's standalone profile, which
Fitch assesses at the 'B+' level, are led by GOGC's dominance of
the Georgian gas midstream, and favourable margin structure,
following contract restructurings.  Stable fee income from gas
and oil transit operations also provides a floor of predictable
and high-margin revenues.

GOGC has a large single-counterparty exposure to a subsidiary of
SOCAR ('BBB-'/Stable), as the single-purchaser intermediary of
gas supplies to the Georgian downstream gas market.  The single-
purchaser model does reduce GOGC's leverage in negotiations with
SOCAR compared to a more open market structure.  However, in
addition to providing GOGC with a largely fixed midstream spread
of c.USD40/mcm, the current structure also gives SOCAR dominant
access to Georgia's gas downstream and its own c.USD30/mcm spread
on regulated sales.  As such, the concentration of risks on the
relationship with SOCAR should be viewed against the background
of broader energy policy interdependencies between Azerbaijan and
Georgia.

Material concerns on the standalone profile are two-fold: size
and planned expansion into hydro-electric power.  GOGC has been
mandated by the government to expand into the power sector, with
a hydro power project (two plants in the Namakhvani power plant
(NHPP) cascade) which will dominate capex over the next three
years.  Expansion into power generation is a departure from
current operations. T he state's rationale for giving this
project mandate to GOGC is, however, plausible and presents fewer
risks for GOGC than a number of alternative investment
opportunities (e.g. overseas upstream expansion).

The investment for this project, while small in global terms
(approximately USD265m) will double GOGC's (largely depreciated)
balance sheet.  Positively, construction and operational risks
are lower than average.  Negatively, despite the government's
generally transparent and constructive approach to the state-
owned sector, asset churn is inherent to the role of a national
energy company, and there is potential for NHPP to be separated
out from the GOGC grouping at some point post-construction.  The
Ministry of Finance in Georgia has indicated to Fitch their
current view that any transfer of NHPP after completion would
reflect the importance to Georgia of maintaining the bankability
and financial stability of GOGC.

The main constraint on the standalone profile, however, is size.
GOGC is small for the rating category (EBITDA of GEL109m/USD67m
in 2011).  Size is marginally offset by a lowly levered balance
sheet, following a government debt writedown, in turn related to
a 2010 restructuring of the midstream market and associated
delinquent receivables.  Capex on existing assets is minimal,
further reduced by obligations upon other pipeline operators/sub-
operators to fund routine maintenance expenditure on GOGC-owned
pipes.

This profile will nonetheless lever up, under Fitch's forecasts,
into the 2.5x-3.0x range on a net debt/EBITDA basis following the
expansion into hydro power, peaking in 2014.  Delevering can
occur relatively rapidly thereafter once hydro power revenues
with low marginal costs materialize, although leverage is not
currently a major constraint upon either the ratings or the
standalone profile.

GOGC's rating alignment to the ratings of the sovereign would be
expected to track any upward movement in the sovereign, currently
'BB-'/Stable, within the 'BB' category, though, similar to
Georgian Railways LLC ('BB-'/Stable), linkage may weaken if
Georgia's sovereign ratings were eventually to move into
investment grade in future.

GOGC's ratings would also track any downgrade of the sovereign.
With regard to the standalone profile, the current assessment of
'B+' incorporates headroom for leverage of up to 3.5x-4.0x with
the proposed business mix.  Leverage in excess of this level
would trigger a lower standalone assessment, though no impact on
GOGC's ratings, unless Fitch judged the deterioration to be
linked to or simultaneous with weakening of sovereign support.


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


ADAM OPEL: GM Presents Restructuring Plan to Workers
----------------------------------------------------
Chris Bryant at The Financial Times reports that the head of
General Motors' Europe arm told German workers on Monday that he
would have to restructure production of a key model in order to
help return the European operation to profitability.

Karl-Friedrich Stracke presented to workers the outline of a
10-point restructuring plan at Opel's mother plant in
Ruesselsheim, the FT relates.

GM is in the midst of making intricate and politically sensitive
decisions on future product allocation at its plants, including
for vehicles made in conjunction with PSA Peugeot Citroen, its
French alliance partner, the FT notes.

GM, which made a US$747 million pre-tax loss in Europe last year,
is barred under its current agreement with unions from closing
plants or sacking workers at Opel/Vauxhall before 2014, the FT
discloses.

But workers fear cuts could follow that date as weak European
demand has left Opel's plants under-used, the FT says.  Mr.
Stracke is set to present a full business plan to Opel's
supervisory board in June but outlined some of its key themes on
Monday, the FT notes.

"It is in no way a [pure] cost-cutting plan, rather it will be a
comprehensive strategy under which we will quickly return to
profitability," the FT quotes Mr. Stracke as saying.  "By 2016 we
will clearly improve our margins, market share and revenues."

Mr. Stracke, as cited by the FT, said that management's goal is
to move to a three-shift production at all Opel factories in
order to raise capacity utilization.

But due to demand levels in Europe, this would only make sense if
the next version of the Astra is produced at two plants, instead
of the current three, the FT states.

German politicians have raised pressure on GM to find a solution
that avoids job cuts but have so far ruled out state aid, the FT
notes.

Adam Opel GmbH -- http://www.opel.com/-- is General Motors
Corp.'s German wholly owned subsidiary.  Opel started making cars
in 1899.  Opel makes passenger cars (including the Astra, Corsa,
and Vectra) and light commercial vehicles (Combo and Movano).
Its high-performance VXR range includes souped-up versions of
Opel models like the Meriva minivan, the Corsa hatchback, and the
Astra sports compact.  Opel is GM's largest subsidiary outside
North America.


CONTINENTAL AG: Fitch Upgrades LT Issuer Default Rating to 'BB'
---------------------------------------------------------------
Fitch Ratings has upgraded Continental AG's Long-term Issuer
Default Rating (IDR) to 'BB' from 'BB-', and affirmed the Short-
term IDR at 'B'.  The Outlook is Stable.  Fitch has also upgraded
the rating of the senior secured notes issued by Conti-Gummi
Finance BV to 'BB' from 'BB-'.

The upgrade follows Fitch's re-assessment of the linkage between
Continental and its highly leveraged parent, Schaeffler Group
(Schaeffler AG and Schaeffler Holding) and reflects the
improvement in the financial performance of the Schaeffler Group.

On a standalone basis, Fitch assesses Continental's rating to be
consistent with a low 'BBB' rating.  The 'BB' IDR represents the
agency's assessment of the consolidated credit quality of the
Schaeffler Group and Continental, including a one-notch uplift to
reflect the current ring-fencing in place and creditor protection
included in Continental's current bond and loan documentation.
Fitch believes that uncertainty remains about what the 'end-game'
will be for Schaeffler/Continental and that the ring-fencing is
largely dependent on negotiations between Continental and banks'
lending at both the Schaeffler and Continental level, whose
interest might not be necessarily aligned with Continental's
bondholders.

However, the agency believes that Schaeffler's controlling
influence and ability to extract cash from Continental is
limited.  Schaeffler and two fiduciary private banks currently
own 60.3% of Continental AG, but Schaeffler cannot exercise
controlling influence over Continental's day-to-day management or
strategic decisions.  Schaeffler is permitted to appoint up to
four members of the 20 members constituting Continental's
supervisory board. All transactions between the two companies
must be on an arm's length basis.

Furthermore, Continental's current loan documentation, maturing
in 2014, limits permitted dividends to shareholders to a maximum
of EUR500 million plus 1% of Continental's market capitalization
if above EUR10 billion (currently approximately EUR14bn).  The
resulting permissible 2011 dividend payout of about EUR640m
represents 22.5% of Continental's 2011 funds from operations
(FFO).  The loan documentation also prohibits shareholder loans,
the issuance of upstream guarantees by Continental and is
governed by financial covenants including capex, leverage and
interest cover.

Continental's standalone low investment-grade business profile is
underpinned by the company's large manufacturing operations,
global footprint, top ranking positions in the markets in which
it operates, solid end-market diversification with about 30% of
sales in the less volatile replacements business and strong R&D
capability.  However, Continental's overall credit quality on a
standalone basis is constrained by relatively high leverage
compared with Fitch-rated auto and related peers like Michelin
('BBB'/Positive) and GKN ('BBB-'/Stable).  Fitch expects
Continental's FFO adjusted leverage to decrease to 2.3x in 2012
and to under 2.0x by 2014 from a peak of over near 6.0x in 2008.

The agency anticipates that free cash flow margin will remain
stable at 2% in the next three years. There are no significant
debt maturities before 2014.  Liquidity at end-2011 was EUR3.7
billion, comprising EUR1.5 billion of cash, EUR1.5 billion of
undrawn funds in a syndicated EUR2.5bn revolving facility
maturing in April 2014, and EUR0.73 billion of committed, but
undrawn, bilateral bank facilities.

Positive rating action for Continental could result if the FFO
adjusted leverage on a consolidated basis of Schaeffler Group and
Continental AG declined to below 3.0x with and FFO interest cover
exceeding 4.5x.

Negative pressure may result if Continental's FFO adjusted
leverage increases to above 2.5x, or EBITDAR margin falls below
12% and FCF margin becomes negative.  A combination of
Continental AG with Schaeffler Group or a weakening in the ring-
fencing provisions after the refinancing of the current bank
loans maturing in April 2014 could also be negative for the
rating.


NUERNBERGER AG: Fitch Affirms Rating on EUR100-Mil. Debt at 'BB+'
-----------------------------------------------------------------
Fitch Ratings has revised German insurers Nuernberger
Lebensversicherung AG's (NLV), Nuernberger Allgemeine
Versicherung AG's (NAV) and Nuernberger Krankenversicherung AG's
(NKV) Outlook to Positive from Stable.  At the same time, the
Insurer Financial Strength (IFS) ratings have been affirmed at
'A'.  The agency has also affirmed their holding company
Nuernberger Beteiligungs-Aktiengesellschaft's (NB) Issuer Default
Rating (IDR) at 'BBB+' and revised its Outlook to Positive from
Stable.  NB's EUR100 million subordinated debt has been affirmed
at 'BB+'.

The revision of the Outlook reflects Nuernberger group's (NG)
strong results and improved debt leverage at end-2011.  With a
net combined ratio of 95.7% in 2011 (2010: 105.1%), NG's non-life
underwriting profitability materially exceeded the agency's
expectation of 100%.

The affirmation reflects Nuernberger group's (NG) strong
capitalization, its leading position in the German unit-linked
life and disability market, and its relative resilience to a
long-lasting low interest rate environment compared to many of
its competitors.  Offsetting these positive rating factors is
NG's continued modest investment income and relatively low
interest coverage which at 4.4x remains below the agency's
expectation for the company's current rating level.

NG reported that 2011 net income more than doubled to EUR80.8
million from EUR35.2 million in 2010.  The increase was driven by
changes in the application of group taxation and a strong
improvement in the group's non-life underwriting results.  While
the tax changes benefit will be much smaller in 2012, Fitch
expects Nuernberger to maintain the underwriting result at its
current level.  Subject to no unforeseen developments, Fitch
estimates Nuernberger's 2012 net income will be in the range of
EUR60 million - EUR70 million.

NG improved underwriting result was driven by a reduction in the
proportion of non-life motor insurance and more favorable claims
experience.  The agency expects NG to report a solid underwriting
result in 2012 as NG has continued to consolidate its motor book.

As a provider of unit linked products, demand for this business
at NG has suffered through the financial crisis and the company's
lapse ratio is worse than the market average.  However, NG's life
annual premium equivalent (APE) increased by 4.2% in 2011.  Fitch
expects Nuernberger's APE to have increased again in Q112.

NG's 2011 interest coverage improved to 4.4x (2010: 3.4x) and
Fitch expects that it will remain at this level in 2012 as Fitch
expects that total debt and related interest payments will reduce
in 2012.  In addition, net debt leverage decreased to 20% at
year-end 2011 compared to 27% in the prior year.  The agency
expects a further improvement in net debt leverage for 2012.

A key rating driver for an upgrade would be continued strong
underwriting profitability and further improvements in the level
of interest coverage while maintaining current levels of group
solvency.  Weak overall profitability, or a material erosion in
capital could lead to a downgrade.

In 2011, NG reported IFRS gross written premiums (GWP) of EUR3.5
billion (2010: EUR3.5 billion) and had total assets of EUR22.9
billion (2010: EUR23.0 billion).  The life segment reported GWP
of EUR2.6 billion, the non-life segment GWP of EUR0.7 billion and
the health segment GWP of EUR0.2 billion in 2011.


SPEYMILL DEUTSCHE: Cerberus to Buy Assets Out of Receivership
-------------------------------------------------------------
An affiliate of Cerberus Capital Management, L.P. has entered
into a definitive agreement to acquire the assets of distressed
company, Speymill Deutsche Immobilien Company plc, from the
Receivers.  As a key part of this transaction, Cerberus worked
with the company's bank lenders to effect the recapitalization of
the assets through a restructuring of the company's EUR985
million of distressed bank loans, and the injection of capital in
the form of subordinated debt and equity that will be used
primarily to pay down debt and make improvements to the assets.
The transaction is expected to close later this week.

Ben Cairns, Receiver, of Ernst & Young, said: "This is a landmark
recapitalization and distressed loan restructuring which is to
the mutual benefit of the existing banks, stakeholders of the
acquired assets, and the new capital sponsor, Cerberus."

Cerberus has been an active investor in Germany since 2002.

Cerberus, along with a co-investor, launched Germany's largest
initial public offering (IPO) of 2011 with the successful listing
of Berlin-based GSW Immobilien AG, on the Frankfurt Stock
Exchange in April of last year.  GSW was acquired from the State
of Berlin in 2004, and Cerberus led the restructuring of the
company and improvement of the assets.

Lee Millstein, Senior Managing Director at Cerberus, stated: "We
are pleased to work with Speymill Deutsche Immobilien's banks to
lead the recapitalization of the assets and the restructuring of
its distressed loans.  The banks benefit from this transaction by
having a large portfolio of non-performing loans converted to
performing loans, while stakeholders benefit from Cerberus
injecting new capital for improvements and leading the execution
of a turn-around of the assets."

The lenders are a consortium of banks led by Netherlands-based
NIBC Bank N.V. along with German banks HSH Nordbank AG and
Norddeutsche Landesbank (NORD/LB.

Martijn Weinreich at NIBC, said: "Cerberus' creative,
knowledgeable approach to restructuring the portfolio's existing
debt and its established track record in Germany made it the
ideal partner."

CORPUS SIREO has been engaged to coordinate asset management.
GOAL will continue to oversee day-to-day management of the
assets.  Engel & Voelkers has been retained to market individual
assets to private investors in Germany after capital and
operational improvements have been implemented.
Kuna & Co. KG served as Cerberus' financial advisor on the
transaction.  Freshfields Bruckhaus Deringer LLP provided legal
counsel to Cerberus.

            About Cerberus Capital Management, L.P.

Established in 1992, Cerberus Capital Management, L.P. is one of
the world's leading private investment firms.  Cerberus has
approximately US $20 billion under management invested in four
primary strategies: distressed securities & assets; control
investments; commercial mid-market lending and real estate-
related investments.  From its headquarters in New York City and
large network of affiliate and advisory offices in the US, Europe
and Asia, Cerberus has the on-the-ground presence to invest in
multiple sectors, through multiple investment strategies in
countries around the world.


VULCAN LTD: Fitch Affirms 'Csf' Ratings on Two Note Classes
-----------------------------------------------------------
Fitch Ratings has affirmed Vulcan (European Loan Conduit No. 28)
Ltd's commercial mortgage-backed floating rate notes due 2017, as
follows:

  -- EUR325.5m class A (XS0314738963): affirmed at 'BBBsf';
     Outlook Stable

  -- EUR20.6m class B (XS0314739938): affirmed at 'BBB-sf';
     Outlook Stable

  -- EUR73.4m class C (XS0314740431): affirmed at 'Bsf'; Outlook
     Negative

  -- EUR75.2m class D (XS0314740944): affirmed at 'CCCsf';
     'RE50%'

  -- EUR38m class E (XS0314741595): affirmed at 'CCsf'; 'RE0%'

  -- EUR3m class F (XS0314742056): affirmed at 'Csf'; 'RE0%'

  -- EUR3m class G (XS0314742213): affirmed at 'Csf'; 'RE0%'

Since Fitch's last rating action in May 2011, the EUR98.5 million
PDF Paris loan repaid at its maturity date (November 2011) while
the EUR30 million Tishman Munich loan prepaid, two years ahead of
its maturity.  These sequential payments, as well as amortization
and a sale of one of the assets securing the Inovalis Eboue Paris
loan, have led to a EUR141 million payment to the class A notes.
Both repaid loans were considered to be of solid credit quality
and were expected to repay.  In a worst case scenario, only a
minimal loss was anticipated.  So while positive, these
repayments do not improve overall credit quality materially, and
taken together with the steady performance of the remainder of
the pool, justify the affirmation of the notes.

The largest remaining loan is the EUR245 million Tishman German
Office loan (45% of the pool by balance), secured by six German
office properties.  In spite of a small fall in vacancy to 19%
(from 23% as at the last rating action in May 2011), net
operating income has fallen across the portfolio by some 23%.
This is driven principally by costs, occupancy at more
competitive rates for new tenants, as well as rent-free periods
granted to a number of these new tenants.  The sponsor was
required to subsidize net operating income to meet debt service
requirements at the most recent interest payment date (February
2012).  Fitch's loan to value (LTV) estimate is far in excess of
100%, indicating an expectation of significant losses for this
loan.

The EUR73.5 million Beacon Doublon Paris loan (13.6%) failed to
repay at its maturity in August 2011.  One month prior to this,
the borrower filed for safeguard protection and the loan was
subsequently transferred into special servicing.  As a result of
the safeguard, no interest is being paid by the borrower and
servicer advances have been made to compensate for the loan's
interest payment shortfalls.  The special servicer continues to
discuss possible restructuring options for the loan, seeking a
mutually beneficial solution.  Any restructuring will have to be
approved by the French courts, which recently extended the
preliminary observation period until July 2012.  Irrespective of
the timing of asset liquidation, Fitch believes that the loan,
which is secured by a multi-tenanted, single office property
located in Coubervoie, just outside of La Defense, will suffer at
most a minor loss.

Two small loans remain in special servicing following failure to
repay at maturity. The EUR13.4 million Inovalis Eboue Paris loan
(2.5% of the pool), secured by good quality office properties
located in Paris' secondary sub-markets, was transferred into
special servicing in Q310.  One of the mortgaged assets was sold
in July 2011 (at above the release price), reducing the reported
LTV to 60%.  The GBP4.3 million Guardian Bonn Rochustrasse (GBR)
loan (0.8% of pool), secured by an office property in Bonn, was
transferred into special servicing (for the second time) on 7
February 2011.  The borrower subsequently filed for insolvency
protection in September 2011.  After discussions between the
special servicer and the insolvency practitioner, the collateral
is in the process of being marketed and sold.  Fitch expects some
loss on repayment of the GBR loan, but given its small balance --
even after taking account of recent missed interest and penalty
interest of 5% -- this is reflected in the 'Csf' ratings assigned
to the two most junior notes.


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


* GREECE: Decides to Pay EUR435 Million Maturing Bonds
------------------------------------------------------
Xinhua reports that Greece was set make a timely payment
of the principal and interest due on approximately EUR435 million
worth bonds maturing on May 15 that were not exchanged
under the recent voluntary Greek sovereign debt restructuring
plan.

According to Xinhua, the Greek Finance Ministry said in a press
release that "The decision weighed carefully all relevant factors
and implications as well as the current conjuncture.  [Tues]day's
decision does not prejudice future decisions on the treatment of
the remaining bonds not tendered in the PSI (Private Sector
Involvement) exchange".

It was noted that the bonds are among the approximately EUR6.4
billion worth bonds issued or guaranteed by the Greek Republic,
which were eligible for inclusion in the bond swap scheme for
private investors that was completed this spring, but were not
tendered for exchange by their holders, Xinhua discloses.

Greece exchanged some EUR177 billion bonds for new ones with
longer maturities and lower value, as part of efforts Greece to
pay EUR435 million bonds not exchanged under supported by EU and
International Monetary Fund lenders to ease its debt load and
tackle the crisis, Xinhua relates.

Analysts had warned that if Greece had decided otherwise, non-
payment could be regarded as a credit event, triggering default,
as the debt-ridden country faces political uncertainty as well
after the inconclusive May 6 polls, Xinhua notes.


* GREECE: Names Caretaker Government Amid Bailout Talks
-------------------------------------------------------
Alkman Granitsas, Nektaria Stamouli and Marcus Walker at The Wall
Street Journal report that Greece named a caretaker government to
take it to next month's election, which is shaping up as a game
of chicken over the country's membership in the euro.

Greece's battered establishment parties and the country's
European creditors claim the election, expected June 17, is
voters' chance to show they want to stay in the euro - by affirming
the need for strict fiscal retrenchment and economic
liberalization, the Journal says.

The country's ascendant austerity opponents, led by the Coalition
of the Radical Left, known as Syriza, say Europe is bluffing and
wouldn't dare to force Greece out of the euro, even if it
renounced the terms of its EUR173 billion (US$220 billion)
bailout program, the Journal notes.

According to the Journal, the high-stakes confrontation could
determine within weeks whether Greece is cut off from
international rescue loans and forced to print its own currency,
or whether Europe blinks and lets Greece run bigger fiscal
deficits longer, to prevent the spillover of financial panic to
other indebted euro-zone nations, such as Portugal and Spain.

Greece's austerity program is effectively on hold until its
political future is clear, the Journal states.

An inconclusive election on May 6, which left no party coalition
strong enough to govern, led to the nomination of an interim
government Wednesday, the Journal discloses.  The Journal relates
that the new caretaker prime minister, 67-year-old senior judge
Panagiotis Pikrammenos, said his administration would have "the
sole purpose of leading the country to elections."  He named the
finance ministry's chief economic adviser, George Zannias, as
temporary finance minister, the Journal notes.

The election campaign will take place against a background of
rising financial-market turmoil in Europe and great uncertainty
in Greece about the country's destiny, the Journal states.
According to the Journal, officials from Greek banks said
depositors were continuing to withdraw large amounts of money
from their bank accounts Tuesday, although the outflow eased from
Monday's peak of nearly EUR700 million.  Officials from Germany
and European Union authorities reiterated Wednesday that Greece
needs wrenching economic overhauls to stay inside the common
currency, according to the Journal.

German and European Central Bank officials have suggested in
recent days that the euro zone would be able to deal with the
financial fallout from a Greek exit, and that contagion in other
struggling euro members would be manageable, the Journal
discloses.


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


BHT GROUP: Premier Forest Buys Timber Unit Out of Insolvency
------------------------------------------------------------
The Irish Times reports that Brooks Group, part of BHT Group, has
been bought out of insolvency by Premier Forest Products Group, a
Welsh timber importer.

The Irish Times relates that Mark Lohan, managing director of
Brooks, said the price has not been disclosed but the investment
will secure 60 of the 120 jobs at the group.

"Our owners are timber people and understand the business.
Together, we look forward to rejuvenating the Brooks brand and
will continue to place an emphasis on quality and customer
service in the delivery of timber and timber-based panel products
and the entire range of building materials."

The report notes that Brooks is one of Ireland's oldest timber
companies and it will now operate from a reduced network of six
premises, two of which will be in Dublin and the others in
Galway, Tullamore, Sligo and Cork.

Brooks was part of the BHT group that went into liquidation in
April following examinership, the report discloses.

The Irish Times notes that the other parts of the business, Heat
Merchants and Tubs and Tiles, have already been sold by the
liquidator Kieran Wallace of KPMG to Harleston, the owner of the
Irish-based Hevac heating and plumbing supplies group, for an
undisclosed sum.

BHT Group provides building, plumbing, tiling and flooring goods.


EIRCOM GROUP: Examiner's Survival Scheme Faces Setback
------------------------------------------------------
Mary Carolan at The Irish Times reports that an unprecedented
application that will come before the Commercial Court on
Wednesday has cast doubt on plans by Eircom's examiner to
finalize a survival scheme with creditors on Friday for companies
employing 5,800 people.

New York-based DW Investment Management LP, which is representing
52.4% of creditors holding EUR350 million in floating rate loan
notes (FRNs) in Eircom and Hutchison Whampoa Ltd (HWL), parent
company of mobile phone operator 3 Ireland, have taken
proceedings following a decision last week by Eircom examiner
Michael McAteer of Grant Thornton to reject a revised EUR2
billion cash offer from 3 Ireland and HWL, the Irish Times
discloses.

According to the Irish Times, under the proposed scheme of
arrangement for Eircom Ltd., Meteor Mobile Communications Ltd and
Irish Telecommunications Investments Ltd., the FRNs will not
receive a dividend and will have their debt "extinguished".

DW Investment Managers claims its clients are being unfairly
prejudiced by the scheme as the HWL proposals would involve a
EUR50 million payment for FRNs, the Irish Times says.

HWL has alleged that "lock-in" restructuring proposals for the
Eircom companies, agreed between the companies and senior
creditors around the time of the examiner's appointment at the
end of March, have prevented exploration of potential investment
opportunities with third parties and effectively pre-determined
the success of the proposed scheme of arrangement, the Irish
Times states.

Among various directions being sought from the court by the two
applicants is one retracting a letter sent from Morgan Stanley,
on behalf of Mr. McAteer, advising HWL that the examiner had
decided not to proceed with its bid, with the effect that HWL
would not be allowed into phase two of the bidding process, the
Irish Times discloses.

The applicants are also seeking a direction requiring the
examiner to postpone meetings of the Eircom companies' creditors
convened for this Friday in Dublin, the Irish Times notes.

The applicants are seeking directions requiring the examiner to
engage with them and allow them access to Eircom's management
team, to the electronic data room containing information relating
to the companies and to a business report prepared by Ernst
Young, the Irish Times says.

They also want access to a valuation report prepared for the
examiner by Jefferies International, according to the Irish
Times.

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.


EUROCREDIT OPPORTUNITIES: Moody's Ups Rating on D Notes From Ba1
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by Eurocredit Opportunities Parallel
Funding I PLC:

    Class A EUR312,500,000 Senior Secured Floating Rate Notes due
2019, Upgraded to Aaa (sf); previously on Jul 13, 2011 Confirmed
at Aa1 (sf)

    Class B EUR10,000,000 Senior Secured Deferrable Floating Rate
Notes due 2019, Upgraded to Aa2 (sf); previously on Jul 13, 2011
Upgraded to Aa3 (sf)

    Class C EUR8,000,000 Senior Secured Deferrable Floating Rate
Notes due 2019, Upgraded to A1 (sf); previously on Jul 13, 2011
Upgraded to A2 (sf)

    Class D EUR40,000,000 Senior Secured Deferrable Floating Rate
Notes due 2019, Upgraded to Baa3 (sf); previously on Jul 13, 2011
Upgraded to Ba1 (sf)

Eurocredit Opportunities Parallel Funding I PLC, is a single
currency Collateralised Loan Obligation ("CLO") backed by a
portfolio of mostly high yield US and European loans. The
portfolio is managed by Intermediate Capital Managers Limited and
will begin amortizing with the next payment period. The portfolio
is predominantly exposed to European and US senior secured loans
(approximately 87%) as well as second lien loans (5.4%). The
underlying assets are denominated in Euros.

Ratings Rationale

According to Moody's, the rating actions taken on the notes are
primarily a result of an improvement in the credit quality of the
underlying portfolio.

Improvement in the credit quality is observed through an
improvement in the average credit rating (as measured by the
weighted average rating factor, or 'WARF'). Since the last rating
action in July 2011, Moody's base case WARF improved from 3010 to
2717 and the weighted average spread has improved from 2.92% to
3.27% in May 2011.

Due to the impact of revised and updated key assumptions
referenced in "Moody's Approach to Rating Collateralized Loan
Obligations" published in June 2011, key model inputs used by
Moody's in its analysis, such as the portfolio par amount, WARF,
diversity score, and weighted average recovery rate, may be
different from the trustee's reported numbers. In its base case,
Moody's analyzed the underlying collateral pool to have a
performing par and principal proceeds balance of approximately
EUR410.1 million, defaulted par of EUR13.1 million, a weighted
average default probability of 17.58% (consistent with a WARF of
2717), a weighted average recovery rate upon default of 47.85%
for a Aaa liability target rating, a diversity score of 35 and a
weighted average spread of 3.27%.

The default probability is derived from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The average recovery rate to be realized on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed that 94.62% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default, while
the remainder non first-lien loan corporate assets would recover
10%. In each case, historical and market performance trends and
collateral manager latitude for trading the collateral are also
relevant factors. These default and recovery properties of the
collateral pool are incorporated in cash flow model analysis
where they are subject to stresses as a function of the target
rating of each CLO liability being reviewed.

In the process of determining the final rating, Moody's took into
account the results of the following sensitivity run:

(1) Covenanted WAS and a 10% deterioration in WARF- To test the
deal sensitivity to key parameters, the covenanted weighted
average spread of 2.30% combined with the a 10% deterioration of
WARF was run. This run generated model results that were within
one notch of the base case results.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the large
concentration of speculative-grade debt maturing between 2012 and
2014 which may create challenges for issuers to refinance. CDO
notes' performance may also be impacted by 1) the manager's
investment strategy and behavior and 2) divergence in legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Sources of additional performance uncertainties are described
below:

1) Weighted average life: The notes' ratings are sensitive to the
weighted average life assumption of the portfolio, which may be
extended due to the manager's decision to reinvest into new issue
loans or other loans with longer maturities post the reinvestment
period, and/or participate in amend-to-extend offerings.
Extending the weighted average life of the portfolio may
positively or negatively impact the ratings of the notes
depending on their seniority with the transactions structure.

2) Recovery of defaulted assets: Market value fluctuations in
defaulted assets reported by the trustee and those assumed to be
defaulted by Moody's may create volatility in the deal's
overcollateralization levels. Further, the timing of recoveries
and the manager's decision to work out versus sell defaulted
assets create additional uncertainties. Moody's analyzed
defaulted recoveries assuming the lower of the market price and
the recovery rate in order to account for potential volatility in
market prices. Realization of higher than expected recoveries
would positively impact the ratings of the notes.

3) Additionally, Moody's notes that around 63% of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates.

The principal methodology used in this rating was "Moody's
Approach to Rating Collateralized Loan Obligations" published in
June 2011.

Moody's modelled the transaction using the Binomial Expansion
Technique, as described in Section 2.3.2.1 of the "Moody's
Approach to Rating Collateralized Loan Obligations" rating
methodology published in June 2011.

The cash flow model used for this transaction, whose description
can be found in the methodology listed above, is Moody's EMEA
Cash-Flow model.

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

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


JAZZ PHARMACEUTICALS: Moody's Assigns 'Ba3' CFR; Outlook Stable
---------------------------------------------------------------
Moody's Investors Service assigned ratings to Jazz
Pharmaceuticals, Inc., including a Ba3 Corporate Family Rating, a
B1 Probability of Default Rating and a Ba3 rating to the
company's proposed US$500 million senior secured term loan and
US$100 million revolver. Jazz Pharmaceuticals, Inc. is a U.S.
subsidiary of Jazz Pharmaceuticals plc, collectively referred to
as "Jazz." This is the first time Moody's has rated Jazz. The
outlook is stable.

Proceeds from the term loan in conjunction with US$177 million of
cash on hand will be used to fund the acquisition of EUSA Pharma
Inc., a small specialty pharma company whose main asset is
Erwinaze. The FDA recently approved Erwinaze for the treatment of
acute lymphoblastic leukemia. The deal is expected to close in
June 2012.

Ratings assigned to Jazz Pharmaceuticals, Inc.:

Ba3 Corporate Family Rating

B1 Probability of Default Rating

Ba3 (LGD3, 34%) senior secured term loan facility of $500
million due 2018

Ba3 (LGD3, 34%) senior secured revolving credit facility of $100
million due 2017

SGL-1 Speculative Grade Liquidity Rating

Ratings Rationale

Jazz's Ba3 Corporate Family Rating reflects its limited scale and
high product concentration among its top 2 products. Xyrem and
Erwinaze represent more than 70% of Jazz's pro forma revenues,
and concentration risk is elevated by a patent challenge on Xyrem
as well as a Form 483 letter related to adverse event reporting.
Offsetting these risks, Jazz's products treat critical medical
conditions, have limited competition, and provide considerable
pricing flexibility. In addition, the generic challenger to Xyrem
faces high hurdles from both a regulatory and an intellectual
property standpoint. Jazz's growth prospects are robust and its
financial leverage is modest, with pro forma debt/EBITDA of
approximately 2.2 times decreasing to under 1.5 times by the end
of 2012. Moody's believes that Jazz will actively pursue business
development but that debt/EBITDA is unlikely to be sustained
above 2.5 times.

The rating outlook is stable. Although Moody's expects rapid
expansion of EBITDA and cash flow due to Xyrem and Erwinaze,
limited scale along with revenue concentration in these products
precludes upward rating pressure. Over time, Moody's could
upgrade the ratings if revenues exceed US$1 billion, if
concentration among Jazz's top 3 products drops below 60% of
total sales and if leverage is sustained below 2.5 times.
Further, an upgrade would likely require favorable resolution of
the outstanding Xyrem patent challenge. Conversely, Moody's could
downgrade the ratings if leverage is sustained above 3.0 times
due to either operating challenges or business development.

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

Headquartered in Dublin, Ireland, Jazz Pharmaceuticals plc is a
specialty pharmaceutical company with products that focus on
narcolepsy and acute lymphoblastic leukemia. Reported revenues
for the twelve months ended March 31, 2012 were approximately
US$330 million. Jazz Pharmaceuticals, Inc. is a US subsidiary of
Jazz Pharmaceuticals plc. Jazz Pharmaceuticals plc is the
guarantor of Jazz Pharmaceuticals, Inc.'s senior secured credit
facilities.


MR BINMAN: Quality Recycling Buys Remaining Parts
-------------------------------------------------
Vincent Ryan at Irish Examiner reports that the remaining parts
of the Mr. Binman group were bought from the receiver on Tuesday
by Quality Recycling in a move that it is hoped will secure over
100 jobs.

Quality Recycling, part of the Wiser Recycling Group, has taken
over the businesses and assets of O'Meara Waste and Clearpoint
Recycling which employed 119 people in Munster as part of the
Mr. Binman Group, Irish Examiner discloses.

The transaction price was not disclosed, Irish Examiner notes.

Bank of Scotland has appointed receivers KPMG to the Mr. Binman
group of waste collection companies in October last year
following concerns about the companies' ability to repay
EUR53 million to its biggest creditor, Irish Examiner relates.

Mr. Binman is a waste collection company.


SOUTH COUNTY GOLF: Landlords Vow to Keep Golf Course Open
---------------------------------------------------------
The Irish Independent reports that the landlords of South County
Golf Club have vowed to keep the popular golf club open after the
company which leased the course became insolvent.

According to the report, South County Golf Club in Brittas, Co
Dublin, had been in operation since 2002 but the directors last
week said they had no option but to cease operations, citing
"extremely difficult market conditions".

The company, which leased the 190 acres site from brothers
John and Patrick Kavanagh, have an outstanding loan of about
EUR2 million, the report discloses.

John Kavanagh told the Irish Independent the course was being
kept opened and he hoped the bar and restaurant would be up and
running again within a week.

But the future of the pro-shop run by PGA professional Raymie
Burns is uncertain, the report notes.

According to the report, Mr. Kavanagh said members would have to
pay EUR10 to play to cover the cost of maintenance, stating the
landlords did not have access to the membership fees that have
been paid.  He said insurance was in place.

"It's quite a shock for this to happen but we're going to try and
keep it open for the members and have visiting players as well,"
the Irish Independent quotes Mr. Kavanagh as saying.

But the club's board said the actions of the landlords in keeping
the course open "have the potential to hamper the orderly wind-up
of the business," the report relays.

The Irish Independent says Mr. Kavanagh disputed the claim. "To
me that sounds ridiculous. We're looking after our asset the best
way we can," the report quotes Mr. Kavanagh as saying.

Mr. Kavanagh, as cited by the Irish Independent, said he and his
brother were owed about EUR100,000 in unpaid rent.

According to the report, the board said it presented a five-year
business plan to Allied Irish Banks (AIB) earlier this year but
support was based on the retention and growth of membership.

The Irish Independent adds Mr. Kavanagh accused the company of
moving out "overnight" without notifying him of their actions. He
said the employees of the restaurant and bar had been made
redundant when the club ceased operations, but he said it had not
been decided whether to re-employ them.


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


EDISON SPA: Fitch Affirms 'B' Short-Term Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has revised the Rating Watch on Edison Spa's 'BB-'
Long-term Issuer Default Rating (IDR) and senior unsecured rating
to Rating Watch Positive (RWP) from Rating Watch Evolving.  The
agency has also affirmed Edison's Short-term IDR at 'B'.

The rating action follows the approval from CONSOB (the Italian
Stock Exchange Commission) of Edison's revised share price for
the mandatory tender offer that will complete the unwinding of
Edison's holding company and restructuring of Edipower's
shareholders group.

In Fitch's view, CONSOB's approval on May 3 of the revised offer
price to EUR0.89 per share from the initial offer of EUR0.84 per
share made by Edison removes a critical hurdle for the
transaction to complete within the timeframe indicated by the
original agreement as June 30, 2012.

The revision of the offer price followed a recommendation by
CONSOB in early April that the initial offer price was not in
line with the valuation of the assets.  The incremental cost
determined by CONSOB and now proposed by EDF ('A+'/Stable) to
Edison minorities will be shared by EDF and Delmi Spa, Edison's
shareholders in Transalpina di Energia.  As a result, the price
paid by EDF to Delmi for Edison's 50% stake held by Transalpina
di Energia will be revised to reflect the higher valuation of the
shares held by Delmi.  In parallel, Delmi will increase the price
for Edison's 50% participation in Edipower to EUR660 million from
EUR600 million.

The amended agreements are now signed and subject to the approval
from the EU antitrust authority which is due by today; the
Italian antitrust authority has already given its clearance to
the transaction.  The last milestone for completion is now the
finalisation of Delmi's acquisition financing for Edipower.

At closing, EDF will control 80% of Edison's capital.  This level
will be further increased at the end of the mandatory tender
offer period, which is expected to be completed by the end of
July.  The effect on Edison's rating will depend on the level of
financial, strategic and operational support that EDF is willing
to provide to the company.  Fitch believes that the likelihood of
Edison's standalone rating, ie excluding potential support from
EDF, returning to the investment grade category is highly
dependent on the ability to strengthen its liquidity position and
the outcome of the renegotiation of gas contracts, expected to be
completed by Q412.

Fitch expects to resolve the RWP on Edison upon completion of the
transaction and once there is more clarity regarding the
abovementioned issues.

If the transaction is completed, Edison's liquidity profile will
benefit from the cash proceeds (EUR660 million) related to the
sale of its 50% equity stake in Edipower and the reimbursement of
Edison's pro-rata contribution (50%) to the Edipower
shareholders' loan made at the end of December 2011 to repay
Edipower's EUR1.1 billion debt maturity.


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


ATF BANK: Moody's Cuts Long-Term Debt & Deposit Ratings to 'B1'
---------------------------------------------------------------
Moody's Investors Service has downgraded by one notch the long-
term deposit ratings of UniCredit Bank Slovakia a.s. to Baa2,
with a stable outlook, from Baa1, and the long-term debt and
deposit ratings of ATF Bank (Kazakhstan) to B1, with a stable
outlook, from Ba3.

These rating actions primarily reflect the reduced capacity of
the parent banking group (UniCredit SpA) to provide capital and
funding support, if needed, to its subsidiaries, as indicated by
the recent one-notch downgrade on of UniCredit SpA to A3
negative; C-/baa2 negative.

At the same time, Moody's confirmed UniCredit's Polish subsidiary
Pekao SA's A2 deposit ratings with a negative outlook and
standalone bank financial strength rating (BFSR) of C- (mapping
to baa1 on the long-term scale) with a stable outlook.

The rating actions on these subsidiaries conclude the reviews
initiated on November 16, 2011, when the ratings of these
subsidiaries were placed on review for downgrade, following a
similar rating action on UniCredit SpA.

RATINGS RATIONALE FOR SLOVAK AND KAZAKH SUBSIDIARIES

The one-notch downgrades of the Slovak and Kazakh subsidiaries of
UniCredit were driven primarily by the weakening capacity and, to
a lesser extent, willingness of the parent to provide timely
capital and funding support to its subsidiaries, if needed.

--- WEAKENING CAPACITY OF THE PARENT BANK TO PROVIDE SUPPORT

Moody's says that the lowering of UniCredit's standalone credit
assessment to baa2, as announced yesterday, reflects (i)
weakening profitability and asset quality; (ii) restricted access
to market funding; and (iii) the increasingly difficult operating
environment that the group faces, particularly in the Italian
market, where conditions have deteriorated significantly since H1
2011. Under Moody's Joint Default Analysis methodology, the long-
term ratings of the Slovak and Kazakh subsidiaries incorporate
uplift from parental support assumptions; the one-notch lowering
of UniCredit's standalone credit strength results in a
corresponding rating downgrade for the subsidiaries.

--- SHIFTING STRATEGIC PRIORITIES ALSO AFFECT WILLINGESS TO
PROVIDE SUPPORT

The rating action on the Kazakh and Slovak subsidiaries also
takes into account, albeit to a lesser extent, Moody's view that
UniCredit SpA's willingness to extend financial support to some
peripheral international subsidiaries has weakened.

Many Western European banks, including UniCredit, are facing
difficult choices regarding the allocation of their scarce
capital and funding resources. This has implications for those
international subsidiaries whose medium-term profitability
potential has been impaired by the ongoing financial crisis
and/or are located in the countries that have reduced strategic
significance for UniCredit group. Accordingly, as the parent
group aims to refocus on its core operations, Moody's considers
that UniCredit's willingness to provide capital and funding
resources to these subsidiaries has weakened compared to the pre-
crisis period.

ATF BANK -- WHAT COULD MOVE THE RATINGS UP/DOWN

In the short-term, ATF Bank's ratings are unlikely to be upgraded
as it has been a consistently loss-making for the past few years,
requiring a parental guarantee for over 40% of its loans. In the
medium-term, a sustainable improvement in the bank's earnings and
reductions in loan-loss provisions, leading to increases in net
income and capital, could exert upward pressure on the ratings.
Conversely, a further material weakening of ATF Bank's earnings
generation, further eroding its capital and franchise, could lead
to a downgrade of its ratings. In addition, further significant
downward pressure on UniCredit's ratings could impact ATF's
ratings.

UNICREDIT BANK SLOVAKIA -- WHAT COULD CHANGE THE RATINGS UP/DOWN

Currently, UniCredit Bank Slovakia's ratings reflect its high
borrower concentration, including exposure to commercial real-
estate and project finance, and its weakening asset quality,
counterbalanced by its solid franchise in the Slovak market
relative to its peers and its adequate capitalisation levels.

In the medium-term a sustained reduction in borrower
concentration and improvement in asset quality could exert upward
pressure on the bank's ratings. Conversely, further deterioration
in the bank's financial fundamentals, particularly related to
asset quality, liquidity and capitalisation, could exert downward
pressure on the ratings. In addition, further significant
downward pressure on UniCredit's ratings could impact UniCredit
Bank Slovakia's ratings.

--- CONFIRMATION OF PEKAO'S RATINGS REFLECTS STANDALONE
RESILIENCE

Pekao's ratings were originally placed on review over concerns
regarding how the challenges facing the parent group could
negatively impact the subsidiary's credit profile. The
confirmation of Pekao's ratings reflects Moody's view of the
Polish subsidiary's relatively independent franchise from that of
the parent, no reliance on parental funding, strong standalone
financial fundamentals, and stringent regulatory controls on
dividend distributions. These considerations underpin Moody's
view that the bank's credit-profile is partly insulated from the
pressures experienced by its parent and results in Pekao's
standalone credit strength maintained at baa1, one notch higher
than the parent's standalone strength of baa2.

The confirmation of Pekao's long-term deposit rating of A2
results from the maintenance of a two-notch uplift from Moody's
assessment of systemic support assumptions, given Pekao's
systemic importance as the second-largest franchise in Poland.

--- FACTORS THAT INSULATE PEKAO (POLAND) FROM THE PARENT'S
CREDIT RISKS

The following factors underpin Moody's view that the Polish
subsidiary is currently insulated from the credit pressures
affecting its Italian parent:

(i) Although Pekao's is majority owned (59%) by UniCredit, the
consistency and transparency of Pekao's strategy is supported by
active minority shareholders and quarterly public disclosures,
due to its presence on the Warsaw stock exchange. Brand
association with UniCredit is relatively low and the quality of
Pekao's customer base is not directly correlated with that of the
group. This supports Moody's view of the relative independence of
Pekao's franchise from that of the parent group.

(ii) Pekao has remained one of the stronger performing banks
amongst its Polish peer group during the crisis, with a strong
capital base supporting its franchise and growth. Moody's does
not see a material risk of Pekao's capital base being depleted by
dividend transfers to the parent. Moreover, protection of the
strong capital base is supported by the guidelines set by the
Polish regulatory authority (KNF) in 2011 to limit the dividend
distributions that Polish banks, including foreign subsidiaries,
can make to their shareholders.

(iii) Pekao remains a fully self-funded institution, with an
independent treasury function and limited non-material exposures
to the parent group.

PEKAO -- WHAT COULD MOVE THE RATINGS UP/DOWN

Given the current negative outlook on Pekao's deposit ratings,
which is aligned with the negative outlook on UniCredit, an
upgrade is unlikely in the near term.

The rating actions on Pekao reflect Moody's view of the
independence of the Polish subsidiary's franchise. Nevertheless,
the rating agency also recognises that further deterioration in
the parent's financial fundamentals and downward pressure on the
parent ratings could lead to group-wide spill-over effects that
could ultimately weaken Pekao's franchise strength.

Therefore, notwithstanding the relative independence of the
Polish subsidiary at this stage, further significant downward
pressure on UniCredit's ratings could impact Pekao's standalone
and long-term ratings.

FULL LIST OF RATING ACTIONS

The following ratings were affected:

  Issuer: ATF Bank

Long-term local- and foreign-currency deposit ratings to B1 from
Ba3, with stable outlook

Foreign currency senior unsecured debt rating to B1 from Ba3,
with stable outlook

Junior subordinate debt rating to B3(hyb) from B2(hyb), with
stable outlook

ATF Capital BV senior unsecured global bonds to B1 from Ba3, with
stable outlook

  Issuer: UniCredit Bank Slovakia

Long-term local- and foreign-currency deposit ratings to Baa2
from Baa1, with stable outlook

Short-term local- and foreign-currency deposit ratings of Prime-2
confirmed

  Issuer: Bank Polska Kasa Opieki S.A.

Long-term local- and foreign-currency deposit ratings of A2
confirmed, with negative outlook

Bank financial strength rating of C- confirmed, with stable
outlook (mapping to baa1)

Short-term local- and foreign-currency deposit ratings of Prime-1
confirmed

The following ratings were unaffected:

  Issuer: ATF Bank

Bank financial strength rating of E+, with stable outlook
(mapping to b3)

Short-term local- and foreign-currency deposit ratings of Not
Prime

  Issuer: UniCredit Bank Slovakia

Bank financial strength rating of D+, with stable outlook
(mapping to ba1)

The methodologies used in these ratings was 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.


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


LATVIJAS KRAJBANKA: Loses Bid to Oust KMPG as Administrator
-----------------------------------------------------------
The Baltic Course reports that the Riga Regional Court has turned
down creditors' demands that audit company KPMG Baltics be
dismissed as insolvency administrator for the Latvijas Krajbanka.

The report says KPMG Baltics will therefore continue as Krajbanka
insolvency administrator. The court's ruling cannot be appealed,
writes LETA.

According to Baltic Course, several Krajbanka creditors
previously turned to the Riga Regional Court, accusing KPMG
Baltics of not observing creditors' interests, of incompetence,
exceeding its authority, ignoring creditors' questions, failure
to approve a Krajbanka recovery plan with creditors, and others,
demanding that another insolvency administrator be appointed for
Krajbanka.

Baltic Course relates that the claims against KPMG Baltics were
submitted by former Krajbanka owner Vladimir Antonov, former Riga
Mayor Andris Argalis, former Krajbanka board member Martins
Zalans, Riga City Council, as well as companies Veiksmes lizings,
Travelvia, Izdevnieciba zurnals Santa, WK Corporate Services Ltd.
and several civilians.

KPMG Baltics said that all complaints submitted against the
company to the Riga Regional Court were unfounded, the report
adds.

Krajbanka was declared insolvent on December 23, 2011 after the
Latvian financial watchdog suspended its activities on
November 21, 2011, Baltic Business News reported.

As reported in the Troubled Company Reporter-Europe in Dec. 27,
2011, Bloomberg News, citing the Riga-based newswire, disclosed
that the bank's liabilities exceeded assets by about LVL100
million (US$187.7 million).

Headquartered in Riga, Latvia, AS Latvijas Krajbanka provides
commercial banking services to businesses and private individuals
in Latvia and the markets of the Commonwealth of Independent
States.  As of Dec. 31, 2009, AS Latvijas Krajbanka had 115
customer service centers and 190 automated teller machines.  AS
Latvijas Krajbanka is a subsidiary of AS banka Snoras.


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


* PORTUGAL: Fitch Withdraws Ratings on Sr. Unsec. Debt Securities
-----------------------------------------------------------------
Fitch Ratings has affirmed at 'BB+' and withdrawn all of its
issue ratings assigned to Portuguese government senior unsecured
debt securities.  The agency has also affirmed at 'B' and
withdrawn the short-term commercial paper program rating.

Although Fitch will no longer maintain ratings on debt securities
issued by the Portuguese sovereign, the agency will maintain
Portugal's Long-term foreign and local currency Issuer Default
Ratings (IDR), Short-term IDR, and Country Ceiling, which are
unchanged.

Fitch last reviewed Portugal's sovereign country ratings on
November 24, 2011.  At that time, the agency downgraded
Portugal's Long-term foreign and local currency IDRs to 'BB+'
from 'BBB-' with Negative Outlook and Short-term IDR to 'B' from
'F3'.  The ratings were removed from Rating Watch Negative (RWN).
The Country Ceiling was affirmed at 'AAA'.


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


BELLEVUE RESIDENCE: Developer Seeks Insolvency at Brasov Court
--------------------------------------------------------------
The Diplomat reports that Bellevue Residence, the residential
luxury compound built in Brasov by Gabi's Development company,
faces financial problems as the developer recently asked for
insolvency at Brasov court law.

The judicial manager of the insolvency file will be Casa de
Insolventa Transilvania, the report says.

Bellevue Residence comprises 9 residential buildings of 5 levels
built on Warthe hill in Brasov and completed in 2010.

In 2009, The Diplomat recalls, the developer, represented by
Gabriel Stan, director of the company, announced that around 80
apartments have been sold within the project, representing more
than half of the total of 148 apartments.  The project started in
2007, following an investment of EUR30 million, financed from
private money in 30 percent ratio, while the rest of the money
came from a credit loaned by Alpha Bank and buyers.


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


BANCA INTESA: Moody's Downgrades Deposit Ratings to 'Ba1'
---------------------------------------------------------
Moody's Investors Service has downgraded by one notch the long-
and short-term deposit ratings of VUB Banka Slovakia (VUB) to
A3/Prime-2, with a stable outlook, from A2/Prime-1, and the long
and short-term deposit ratings of Banca Intesa (Russia) to
Ba1/Not Prime, with a stable outlook, from Baa3/Prime-3.

These rating actions reflect the reduced capacity of the parent
banking group Intesa Sanpaolo SpA (Intesa) to provide capital and
funding support, if needed, to its subsidiaries, as indicated in
the downgrade of Intesa to A3 negative; C-/baa1 negative.

The standalone bank financial strength ratings (BFSRs) of VUB and
Banca Intesa (Russia) were not affected.

The rating actions on these subsidiaries conclude the reviews
initiated on February 21, 2012, when the ratings were placed on
review for downgrade, following a similar rating action on
Intesa.

Ratings Rationale

The one-notch downgrades of the Slovak and Russian subsidiaries
of Intesa were driven by the weakening capacity of the parent to
provide timely capital and funding support to its subsidiaries,
if needed.

Moody's says that the lowering of Intesa's standalone credit
assessment to baa1 from a2, announced yesterday, reflects the
significant deterioration in the operating environment within
Italy since the middle of 2011 and the negative effects this is
having on the Italian banks' profitability, asset quality and
access to market funding. Under Moody's Joint Default Analysis
methodology, the long-term ratings of the Slovak and Russian
subsidiaries incorporate uplift from parental support
assumptions; the two-notch lowering of Intesa Sanapolo's
standalone credit assessment therefore has a direct impact on the
ratings of the subsidiaries.

VUB SLOVAKIA -- WHAT COULD CHANGE THE RATINGS UP/DOWN

Currently VUB Slovakia's ratings reflect its strong domestic
franchise as well as its relatively solid financial fundamentals,
in particular its revenue generating ability, liquidity and
capitalization.

In the medium-term, a sustained reduction in borrower
concentration and improvement in asset quality could exert
upwards pressure on the standalone ratings. Conversely, a
deterioration in either bank's standalone financial fundamentals,
particularly related to asset quality, liquidity and
capitalization, would exert downward pressure on the ratings. In
addition, further significant downwards pressure on Intesa's
ratings and/or Slovakia's government debt ratings could affect
VUB's standalone credit strength and deposit ratings.

BANCA INTESA (RUSSIA) -- WHAT COULD CHANGE THE RATINGS UP/DOWN

Banca Intesa (Russia)'s ratings incorporate the bank's broad
regional penetration, its experience in SME lending, historically
rigorous credit underwriting practices, as well as the bank's
solid capitalization levels. At the same time, Banca Intesa's
standalone credit profile remains constrained by its modest
profitability and cost-efficiency metrics, as well as its
dependence on parental funding.

In the medium-term a sustained improvement in the bank's
profitability and efficiency metrics -- combined with a more
diversified funding profile -- could exert upward pressure on the
bank's ratings. Conversely, a deterioration in either the bank's
market position or standalone financial fundamentals,
particularly related to capitalization, could exert downward
pressure on the ratings. In addition, further significant
downward pressure on Intesa's ratings could affect Banca Intesa
(Russia)'s deposit ratings.

FULL LIST OF RATING ACTIONS

The following ratings were affected:

  Issuer: VUB Banka

Long-term local- and foreign-currency deposit ratings to A3 from
A2, with stable outlook

Short-term local- and foreign-currency deposit ratings to Prime-2
from Prime-1

  Issuer: Banca Intesa Russia

Long-term local- and foreign-currency deposit ratings to Ba1 from
Baa3, with stable outlook

Short-term local- and foreign-currency deposit ratings to Not
Prime from Prime-3

The following ratings were unaffected:

  Issuer: VUB Banka

Bank financial strength rating of C-, with stable outlook
(mapping to baa2)

  Issuer: Banca Intesa Russia

Bank financial strength rating of D-, with stable outlook
(mapping to ba3)

Intesa's Egyptian subsidiary, Bank of Alexandria SAE, remains on
review for downgrade; Moody's extended the review in April 2012.

The methodologies used in these ratings was 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.


RUSSIAN NOVOSIBIRSK: Fitch Lifts LT Currency Ratings to 'BB+'
-------------------------------------------------------------
Fitch Ratings has upgraded the Russian Novosibirsk Region's Long-
term foreign and local currency ratings to 'BB+' from 'BB' and
National Long-term rating to 'AA(rus)' from 'AA-(rus)'.  The
Outlooks are Stable.  The region's Short-term foreign currency
rating was affirmed at 'B'.

The upgrade reflects the region's sound budgetary performance,
supported by increased tax revenue underpinned by the continued
expansion of the local economy, improved capital spending with
sustained self-financing capacity on capex and low direct risk.
The ratings also take into account the region's moderate
contingent liabilities and the moderate rigidity of its operating
expenditure.

Fitch says any further upgrade is subject to a strong budgetary
performance with sustained operating margins at above 15% level
in the medium term and the region's ability to keep debt at a
moderate level.  Conversely, weaker budgetary performance leading
to deterioration of debt coverage ratio (direct risk to current
balance) above average debt maturity would lead to downward
pressure on the ratings.

Fitch expects Novosibirsk to maintain a sound operating margin at
about 15% in 2012-2014, supported by tax revenue and the
administration's prudent budgetary policy.  The region
consolidated its sound budgetary performance in 2011, with the
operating balance at 14.4% of operating revenue (2010: 15.3%).
Taxes amounted to 82% of operating revenue in 2011, while rigid
spending items stood at 74.8% of opex.  Stable growth of tax
revenue led to the region posting a minor deficit before debt
variation at 0.3% of total revenue in 2011 (2010: 1.8%).

The region's annual capital outlays stood at 22.3% of total
expenditure in 2011 (2010: 24.9%), increasing from the average
level of 13.2% in 2007-2009.  The region's current balance
covered 56.5% of capex in 2011.  The remainder of capital outlays
were funded by various federal capital transfers aimed at
infrastructure development.  Fitch notes that capex of above 20%
of total expenditure expected in the medium-term will be
sustainable due to the region's sound self-financing capacity.

Fitch expects Novosibirsk to continue its conservative debt
management policy, allowing it to keep direct risk at a safe
level in the medium term, with direct risk increasing up to 10%
of current revenue in 2012 and its stabilization at this level in
2013-2014.  Direct risk in 2011 remained low despite an
insignificant increase up to 8.1% of current revenue in 2011
(2010: 6.1%).

The region's refinancing risk is low as its direct risk stock is
94.4% composed of federal budget loans with maturities stretching
up to 2016.  Novosibirsk's contingent liabilities are moderate
and comprised of few issued guarantees and low, self-serviced
debt of its public companies.

The Novosibirsk region is located in Russia's Siberian federal
district.  The region's service-oriented and diversified economy
supports its median for the Russian region wealth indicators.
The region accounted for 1.3% of national GDP and 1.9% of the
Russian population in 2010.


RUSSIAN STANDARD: Fitch Assigns 'B+' Rating to RUB5BB Sr. Bonds
---------------------------------------------------------------
Fitch Ratings has assigned JSC Russian Standard Bank's (RSB) RUB5
billion senior unsecured fixed-rate exchange bonds (BO-06 series)
a Long-term rating of 'B+'.  The notes have a Recovery Rating of
'RR4'.

The bonds bear a 9.4% coupon rate.  The issue is due in May 2015
and bondholders have a put option exercisable in November 2013.
RSB's obligations under the bonds rank equally with the claims of
other senior unsecured creditors except claims of retail
depositors, which under Russian law rank above those of other
senior unsecured creditors.  Retail deposits accounted for 63% of
the bank's total liabilities at end-2011, according to RSB's 2011
IFRS disclosures.

At end-2011, RSB was the 27th largest bank in Russia by assets
and according to management's estimates held 17.2% market share
in credit cards and 11.7% in POS loans.  Roustam Tariko
indirectly owns 99.9% of RSB's shares.


SUKHOI SUPERJET: SSJ 110 Crash Won't Affect Fitch's 'BB' Rating
---------------------------------------------------------------
Fitch Ratings expects the crash of the Sukhoi Superjet 100 (SSJ
100), while on a demonstrator flight, to negatively affect orders
for the aircraft in the short term, but not the 'BB'/Stable
rating of JSC Sukhoi Civil Aircraft (SCAC), the plane's
manufacturer.

SCAC's ratings are linked to its ultimate majority shareholder,
the Russian Federation ('BBB'/Stable).

Although the cause of the crash outside Jakarta, Indonesia on
May 9 is still unknown, this tragic accident represents a further
setback to the ambitious Russian civilian aerospace industry.
Over the past decade the Russian state has invested heavily in
the sector in the hope of re-establishing the country as a global
technology and high-end manufacturing leader.

The success of the SSJ 100 regional jet is especially important
as it is the first of many new commercial aircraft to be
launched.  Instead, it has suffered from a three-year development
delay, poor initial market reception and minor operational
difficulties following its April 2011 entry into commercial
service.

The SSJ 100 was on a six-country demonstration tour of east Asia,
with company management hoping to secure new orders for the
aircraft.  So far 170 orders have been placed (six are in
commercial usage), mostly from CIS-based airlines, with
production slots all but booked out for the coming two years.
While the order flow has been steady over the past several years,
the numbers purchased remain considerably short of the programme
break-even point.  Further orders outside the CIS are vital to
its success.

SCAC's ratings are linked to the Russian sovereign's based on its
financial commitment to date and we expect this support to
continue via additional equity injections over and above what has
already been contributed.  However, any waning, or perceived
waning, of that support, is likely to see SCAC's ratings notched
further away from those of the sovereign.

SCAC's stand-alone credit profile is very weak, characterized by
negative free cash and high leverage.  This will continue to be
the case in the short to medium term.


* TAMBOV REGION: Fitch Raises Long-Term Currency Ratings to 'BB'
----------------------------------------------------------------
Fitch Ratings has upgraded the Russian Tambov Region's Long-term
foreign and local currency ratings to 'BB' from 'BB-' and
affirmed the region's Short-term rating at 'B'.  The agency has
also upgraded the region's National Long-term rating to 'AA-
(rus)' from 'A+(rus)'.  The Outlooks on the Long-term ratings are
Stable.

The upgrade reflects the region's improved budgetary performance,
prudent financial management leading to moderate direct risk and
strong cash position.  The ratings also factor in the modest size
of the local economy and the short-term profile of its direct
debt.

Fitch notes that further positive rating action would be subject
to sustained sound operating performance underpinned by tax
revenue growth, and maintenance of moderate total risk.
Conversely, deterioration of budgetary performance and weakening
of debt coverage ratio coupled with increasing refinancing risk
would lead to downward rating pressure.

The region demonstrated improving budgetary performance with
operating balance at 14% of operating revenue in 2011 (2010:
9.4%).  Fitch expects the region will continue to record sound
budgetary performance with operating balance averaging 12% of
operating revenue in the medium term after the expected temporary
deterioration to 10.5% in 2012 due to one-off increase of current
expenditure.  Forecasted moderate deterioration will reflect the
increase of current expenditure linked to the post-election
growth of social spending and a change in the expenditure
allocation among federal, regional and municipal budgets.

Tambov recorded relatively high capital expenditure in 2011 at
about 25% of total expenditure.  Capital spending was partly
linked with the earmarked capital grants from the federal budget,
which covered 56% of total capex in 2011.  Fitch expects a minor
decline of capital spending in 2012 compared with the previous
year.  The region will rely more on its own resources to finance
capex, while the agency expects the importance of capital grants
to decline in 2012 due to the completion of several large
national programs.

The decline in capex will limit the direct risk growth and Fitch
expects a minor increase of direct risk in absolute terms by end-
2012.  In relative terms it will stay low at about 17% of current
revenue.  In 2011 the region's direct risk increased by 1.5x to
RUB4.7 billion from RUB3.2 billion a year earlier, due to new
borrowing from the federal budget.  However net direct risk (net
off cash reserves) declined due to the increase of outstanding
cash and reached 14.6% of current revenue down from 22.4% in the
previous year.

Tambov's economy is historically weaker than that of the average
Russian region.  Its per capita gross regional product (GRP) was
about 31% lower than the national median in 2010.  This means the
region has relatively weak tax capacity and that current federal
transfers constitute a significant proportion of current revenue
(about 51% in 2011).  However, federal transfers act as a
stabilizing factor during recessions, making the region less
vulnerable to negative external shocks.


===============
S L O V E N I A
===============


PRIMORJE HOLDING: NLB Files Bankruptcy Motion
---------------------------------------------
STA reports that state-owned NLB bank has filed a motion at Nova
Gorica District Court to commence bankruptcy proceedings against
Primorje Holding, the sole owner of the last surviving among
Slovenia's large construction companies Primorje,

The bank and the court confirmed the filing of the the motion on
Wednesday, STA relates.

Primorje Holding is the sole owner of Slovenian construction
company Primorje.


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


AYT ANDALUCIA: Fitch Affirms Rating on Class D Notes at 'BBsf'
--------------------------------------------------------------
Fitch Ratings has affirmed AyT Andalucia FTEMPRESA Cajamar, FTA,
a securitisation of Spanish SME loans originated and serviced by
Cajamar Caja Rural, Sociedad Cooperativa de Credito (Cajamar,
'A'/Negative/'F1'), as follows:

  -- Class A (G) notes (ISIN ES0311997011): affirmed at 'AAAsf';
     Outlook Negative
  -- Class B notes (ISIN ES0311997029): affirmed at 'AAsf';
     Outlook Stable
  -- Class C notes (ISIN ES0311997037): affirmed at 'Asf';
     Outlook Stable
  -- Class D notes (ISIN ES0311997045): affirmed at 'BBsf';
     Outlook Stable

The affirmation reflects the notes' high credit enhancement (CE)
and good performance of the portfolio.  The credit protection for
all the notes has increased due to deleveraging and the CE levels
across the capital structure are higher than the agency's loss
expectations for the corresponding rating levels.  The reserve
fund is close to the required balance while real estate
concentration in the portfolio is low at 13%.

The current portfolio information provided to Fitch by Ahorro y
Titulizacion, SGFT, SA (AyT, the management company or Gestora)
for the analysis was missing essential fields.  Fitch has
overcome the data issues by cross-linking the complete original
portfolio data and information provided by AyT in the closing
collateral data tape.  Hence the agency was able to complete the
review analysis that resulted in the rating actions listed above
by simulating the various rating stresses within its Portfolio
Credit Model.


BANKIA SA: Investors Lose About US$2 Billion in July IPO
--------------------------------------------------------
Elisa Martinuzzi, Zijing Wu and Charles Penty at Bloomberg News
reports that Bankia SA, the Spanish lender taken over by the
government in a bailout this month, struggled to convince money
managers to take part in its initial public offering less than a
year ago.

The bank instead relied on individuals, investors who are
typically less equipped to analyze stock risks, to fill orders
for the IPO in July, Bloomberg notes.  About 347,000 investors,
most of them individuals bought Bankia's shares, Bloomberg
discloses.

After pricing at 3.75 euros a share in the IPO and gaining 4% in
the first two weeks of trading, Bankia had dropped to 1.86 euros
by Tuesday's close as concern grew that Spanish lenders would
need more capital, Bloomberg relates.  Investors have since lost
about US$2 billion, or half of what they paid for Bankia shares
in the IPO, deepening the cost of a sovereign debt crisis that's
pushed Spanish unemployment to an 18-year high, Bloomberg says.

Spain's Association of Bank, Savings Bank and Insurance Users,
known as Adicae, said on Wednesday it would start a campaign to
protect the interests of Bankia's retail shareholders, Bloomberg
relates.

The Bankia group, formed in 2010 from a merger of seven savings
banks led by Caja Madrid, has the most exposure to Spanish real
estate among the nation's banks, Bloomberg notes.

Spain is taking over Bankia by converting its EUR4.5 billion of
preferred shares in the group's parent company into ordinary
shares, Bloomberg says.  According to Bloomberg, a person with
knowledge of the plans said that Bankia group's new management
will have an initial deadline of May to present a restructuring
plan, including additional state support.

Bankia SA accepts deposits and offers commercial banking
services.  The Bank offers retail banking, business banking,
corporate finance, capital markets, and asset and private banking
management services.


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


CLS & PARTNERS: Insolvency Service Winds Up Two Landbanking Firms
-----------------------------------------------------------------
Two North-West based landbanking companies that sold plots of
agricultural land to members of the public have been wound-up in
the public interest following an investigation by Company
Investigations of The Insolvency Service.

CLS & Partners Limited and Sterling Mortimar Limited operated a
landbanking business selling small plots of land situated in
Wakefield to investors. Prospective investors were told that CLS
& Partners Limited would pursue planning permission for
residential development of the land with a view to selling the
Wakefield site in its entirety to a developer. It was claimed
that obtaining planning permission would result in a 'tenfold
increase' in the value of the plots.

The investigation found that the companies had made no
application for permission to develop the Wakefield site and
that, had they done so, it was extremely unlikely that permission
would have been granted by the Council. Sales agents acting on
behalf of the companies misinformed investors that planning
permission had already been obtained or would be taken care of by
CLS & Partners Limited.

At least 74 plots were sold to investors for amounts totalling
GBP924,614. All of these funds were subsequently spent by CLS &
Partners Limited and its bank account was closed in November
2011. Inadequate accounting records kept by the company meant
that much of this expenditure was unexplained. In particular, the
accounting records contained no explanation as to why investor
funds had been used to purchase motor vehicles from auctions to a
value of GBP212,089 and why amounts totalling GBP483,591 had been
paid to an associated company, Curved Ball Limited, which was
dissolved in November 2011.

Commenting on the case, Claire Entwistle, Director of Company
Investigations North, said:

"These companies induced members of the public to purchase plots
of land by falsely claiming that planning permission was imminent
and that the land would increase in value significantly. I would
urge anyone who is approached to invest in land in such
circumstances to take time to reflect, seek independent advice
and research the company in question. In particular, don't be
afraid to say 'No thank you.' If a scheme sounds too good to be
true, it usually is."


LUGGIE UK: Insolvency Service Winds Up Firm Amid Complaints
-----------------------------------------------------------
Tanya O'Rourke at The Telegraph and Argus reports that Luggie UK
Ltd has been wound up in the public interest after investigators
found it was selling unsuitable mobility equipment to elderly
customers.

The report relates that more than 30 complaints have been made to
West Yorkshire Trading Standards in the last year about Luggie UK
Ltd, which began trading in March 2011, under the name Mobility
Plus.

According to the report, investigations by the Insolvency
Service's Companies Investigation Team led to a catalogue of
concerns being raised.

The report says the service found one 80-year-old customer who
had both his legs amputated was sold a scooter which guidelines
suggested was suitable only for someone who had the use of both
of their legs.

According to the report, representatives who made home visits
were referred to as "assessors" -- but were not qualified to
assess customers' needs in relation to the suitability of
scooters.

The service said the company sent correspondence to elderly
customers in response to their complaints which lacked
transparency as to the company's identity and its officers,
causing confusion, the Telegraph and Argus notes.

The report discloses that concerns were raised that the company's
business was the same or similar to that carried on by Easy Care
Sales UK Ltd which went into liquidation on March 7, 2011.

According to the Insolvency Service, a "significant" number of
Easy Care's customers had complained about the company's sales
techniques and business practices.

The report notes that Companies House records show both firms are
in liquidation and both have their registered office at
Huddersfield Road, Birstall.

Luggie UK Ltd sells mobility scooters.


REGENCY COINS: High Court Winds Up Rare Coins Company
-----------------------------------------------------
Regency Coins (UK) Limited has been wound up in the High Court in
London, following a petition presented by the Secretary of State
for Business, Innovations and Skills after investigations by
Company Investigations of The Insolvency Service.

Investigators found that Regency began selling coins as an
investment from January 2008. Many of the victims were elderly
and lost their savings in this scam. Regency ceased trading in
2010 following a police search of the company's premises and the
seizure of a stock of coins.

The company is insolvent, has no director or company secretary on
record and has insufficient assets to meet claims from creditors.
Regency also failed to maintain adequate accounting records and
lacked financial controls. There was misuse of company money and
payments in excess of GBP970,000 were made to Steven Lawson who
appeared to direct the affairs of the company, or to companies he
was associated with.

In addition, the investigation found that the company:

   (i) sold coins at a price far in excess of their true
       market value and also of a significantly lower
       quality than represented. The excessive profit made
       by the company also meant that the investments made
       by clients were unlikely to realise any profit;

  (ii) sold coins that it did not own, without ensuring
       it could subsequently satisfy client orders;

(iii) sold the same coin to more than one client, retaining
       the coin on the pretext that it would later be sold
       for a profit on behalf of the client;

  (iv) sold coins on behalf of clients, but retained the
       proceeds of sale without paying these to the clients,
       leaving the client without either the coin sold or
       the proceeds; and

   (v) abused client bank and credit card details, taking
       monies in excess of the agreed purchase price for
       the coins.

David Hill, case supervisor, said: "Regency portrayed itself as a
safe investment choice for people who had saved a bit of money
and wanted to invest some of it for theirs, and their family's
future.

"These scams are particularly shocking because they target the
most vulnerable members of society. The worst thing is, after the
money has been taken, most elderly investors will never be able
to make good their loss again."

On March 7, 2012, the Secretary of State presented a petition
against Regency Coins seeking an order that it be wound up under
Section 124A Insolvency Act 1986, in the public interest. The
petition was heard in the High Court, London on May 2, 2012.

Regency Coins (UK) Limited sold rare coins to the public.


WORLDSPREADS GROUP: FSA Alerted to Fraud Prior to Administration
----------------------------------------------------------------
Simon Mundy at The Financial Times reports that Worldspreads'
board and the Financial Services Authority were alerted to an
alleged fraud at the group's former Irish unit three months
before Worldspreads filed for administration in March, citing
accounting irregularities.

The board of Marketspreads, formed by a 2009 buyout of
Worldspreads' Irish business, wrote to the Worldspreads board in
December 2011 and January 2012 to alert them to the discovery of
apparent fraud and false accounting at the division before its
sale, the FT recounts.

Worldspreads was told that there had been a big overstatement of
assets and revenues at the former Irish subsidiary and that funds
had been misused, the FT discloses.  Last month, Marketspreads
filed restated accounts showing that reported pre-tax profit of
EUR4 million for the year to March 2009 was overstated by EUR2.5
million, the FT relates.

At the time of the buyout, Worldspreads had inflated retained
earnings by EUR6.7 million, and overstated amounts due from
clients by EUR3 million, the FT says, citing the restated
accounts prepared -- like the initial accounts -- by Ernst &
Young.  According to the FT, the revised report added that
"certain former directors and senior executives of the company
had been engaged in significant and previously undisclosed
trading activities with the firm".

The board of Worldspreads did not tell shareholders about the
letters informing them of these irregularities in December 2011
and January 2012, the FT states.  It notified the Financial
Services Authority, which told the company to set up an
investigation into the allegations under the oversight of an
independent director, the FT discloses.

On March 14, Conor Foley resigned as chief executive with
immediate effect.

Two days later, the shares were suspended following the discovery
of financial irregularities, the FT relates.   

Worldspreads went into administration on March 19, revealing that
it had only GBP16.6 million of cash to repay GBP29.7 million owed
to clients, the FT recounts.

Worldspreads Group Plc is a U.K. brokerage and spread-betting
firm.


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


* Moody's Says Bank Credit Deterioration Affects SF Securities
--------------------------------------------------------------
Moody's Investors Service commented on its approach to evaluating
the impact of global and European bank credit deterioration on
structured finance (SF) securities. This follows the announcement
on February 15, 2012 that Moody's had placed on review for
downgrade the ratings of 114 European banking groups and
additional non-European firms with large capital market
franchises (collectively, banks).

A deterioration in the credit quality of banks negatively affects
SF securities because of the various roles that banks play in SF
transactions. Credit linkage between these SF securities and the
counterparties arises because of the risk that a bank will fail
to perform its role and cause a payment disruption or permanent
losses on the securities. The degree of credit linkage also
depends on the roles of the banks, the relevant jurisdictions,
the nature of the transactions and the presence of protection
mechanisms.

-- Securities with Direct and Indirect Linkage

SF securities that primarily rely on payments from banks acting
as their underlying obligor or guarantor have direct credit
linkage with these banks; the weaker the bank, the weaker the
securities. As a result, bank rating changes will translate
directly into rating changes on these securities. Such securities
include collateralized debt obligations and structured notes that
repackage bank debt and guaranteed tranches of asset-backed
securities, commercial mortgage-backed securities, and
residential mortgage-backed securities.

Moody's placed on review for downgrade the ratings of securities
from 240 SF transactions worldwide with direct linkage to the
affected banks immediately following its announcement of the
banks' rating reviews on 15 February 2012. Because these
securities have direct credit linkage with the affected banks,
Moody's will downgrade these securities soon following the bank
downgrades.

Most other SF securities have indirect credit linkage to banks;
the banks' failure doesn't automatically lead to a payment
disruption on the SF security. Activities that lead to these
indirect linkages include banks acting in the role of sponsor,
originator, servicer, swap counterparty, account bank, or
liquidity provider.

For these indirectly linked securities, Moody's rating actions
depend on its assessment of their degree of credit linkage to
these banks. Following bank downgrades, Moody's will first take
negative rating actions on SF securities with the highest credit
linkage to the affected banks. In parallel, Moody's will monitor
the implementation of protection mechanisms without taking
immediate rating action on SF securities with indirect but not
critical linkage to the downgraded banks. Failing the
implementation of such mechanisms, Moody's will take additional
negative rating actions depending on the degree of credit linkage
between SF securities and the affected banks.

-- Impact Analysis for Indirect Linkage

Moody's rating actions on securities with indirect credit linkage
will depend on its assessment of their degree of linkage to
affected counterparties. This assessment will focus primarily on:

- The degree of reliance on the counterparty for full and timely
payment on the securities: the higher the reliance, the higher
the linkage.

- The respective ratings of the SF and the counterparty: the
higher the rating of the affected security compared with that of
the downgraded counterparty, the higher the potential impact on
the security's rating.

- The likelihood that transaction parties will implement
protection mechanisms as well as their ability to reduce credit
linkage. Typical mechanisms to reduce credit linkage take the
form of the replacement of counterparties and the posting of cash
collateral if Moody's downgrades counterparties below a specific
rating threshold.

Moody's already placed on review securities from 249 SF
transactions because of indirect linkage, following its
announcement of the banks' rating reviews on February 15, 2012.
These SF securities included primarily asset-backed commercial
paper in which the affected bank acts as a key liquidity or
credit provider and repackaged transactions in which the affected
bank acts as one of the key support providers.

Moody's will downgrade those securities that strongly rely on the
performance of any banks that it downgrades unless issuers and
their agents have communicated plans to implement protection
mechanisms that reduce the credit linkage to these banks.

Moody's will place on review for downgrade other securities that
also rely strongly on the performance of affected banks, while
monitoring the implementation of the various protection
mechanisms designed to reduce credit linkage. These securities
include those relying on cross currency swaps, large cash
accounts, or low rated servicers without back-up arrangements. If
the transaction parties fail to effectively and timely implement
protection mechanisms, the transactions' strong linkage to
affected banks will likely result in large rating downgrades on
the highest rated securities.

Moody's does not expect to take any immediate rating actions on
securities with indirect exposures to downgraded banks if Moody's
concludes these exposures have a small effect on the securities'
credit quality, or the likelihood of timely implementation of
effective structural protection mechanisms is high. In
particular, Moody's will take into account the timing and details
of the implementation of protection mechanisms that transaction
parties have communicated. Moody's will consider downgrading
these securities if the transaction parties do not implement the
protection mechanisms. Any negative rating action will depend on
the magnitude of payment disruptions Moody's expects as a result
of increased counterparty risk, the magnitude of the counterparty
downgrade and the rating of the exposed security.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

November 1-3, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.
           Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.
           Contact: http://www.turnaround.org/

October 3-5, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.
           Contact: http://www.turnaround.org/


                            *********

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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 240/629-3300.


                 * * * End of Transmission * * *