TCREUR_Public/120718.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, July 18, 2012, Vol. 13, No. 142

                            Headlines



G E R M A N Y

SPELLBOUND ENTERTAINMENT: Emerge From Insolvency


I R E L A N D

PB DOMICILE: Fitch Affirms 'BB' Rating on EUR15.4-Mil. Notes


I T A L Y

* ITALY: Moody's Downgrades Sub-Sovereign Ratings
* ITALY: Moody's Cuts Debt & Deposit Ratings of Various Banks


K A Z A K H S T A N

KAZAKHSTAN MORTGAGE: Fitch Assigns 'BB/BB+' LT Currency Ratings


L U X E M B O U R G

XELLA INTERNATIONAL: S&P Affirms 'B+' Corporate Credit Rating


R U S S I A

CITIBANK ZAO: Fitch Upgrades Viability Rating From 'bb+'
VNESHECONOMBANK: S&P Assesses Stand-alone Credit Profile at bb


U N I T E D   K I N G D O M

AA GROUP: In Administration on Late Payments & Trading Conditions
CORIOLANUS LTD: S&P Lowers Rating on Series 66 Notes to 'CCC-'
FOUR SEASON: Fitch Raises LT Issuer Default Rating to 'B'
HONISTER CAPITAL: In Administration, Failed to Secure Insurance
NEW EDINBURGH: In Administration, Blames Economic Climate

NUVO BAR: Enters Liquidation; Owner Blames Recession
RADECE PAPIR: Paper Mill Gets EUR15-Million Offer From Saray
SUREWAY HEATING: Goes Into Liquidation After 40 Years
TWICKENHAM FILM: TSL Acquires Studio Out of Administration
W.J. BAKER: In Administration, Cuts 30 Jobs


U Z B E K I S T A N

UNIVERSAL BANK: Fitch Withdraws 'CCC/C' Issuer Default Ratings


X X X X X X X X

* Fitch Downgrades 11 Tranches of 7 Synthetic CDOs to 'Dsf'


                            *********

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G E R M A N Y
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SPELLBOUND ENTERTAINMENT: Emerge From Insolvency
------------------------------------------------
Emily Gera at The Verge reports that Spellbound Entertainment,
the developer behind Arcania: Gothic 4, is emerging from
insolvency under the new name Black Forest Games.

The Verge relates that the new studio hopes to re-establish
itself as "a leader in RPG and strategy games."

"Black Forest Games will add to the legacy of Spellbound
Entertainment by empowering the core of the team to build an even
greater company that is tuned to today's market opportunities,"
CEO Andreas Speer told Eurogamer, according to The Verge.

"With the talent and IP we have internally, we know we'll again
be recognised as a leader in the creation of games for the RPG
and strategy genres."

According to the report, 40 of the original 65 member Spellbound
team will be involved in the new studio, including key members of
management and the creative team.  Black Forest Games also has
new funding following its insolvency filing in March, the report
notes.

Offenburg-based studio Spellbound was formed in 1994, and has
created games such as Desperados, Giana Sisters, Airline Tycoon
and Gothic 4: Arcania.



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I R E L A N D
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PB DOMICILE: Fitch Affirms 'BB' Rating on EUR15.4-Mil. Notes
------------------------------------------------------------
Fitch Ratings has affirmed PB Domicile 2006-1 PLC, as follows:

  -- EUR 27.6m Class D (ISIN DE000A0GYFL1): affirmed at 'BBBsf';
     Stable Outlook

  -- EUR 15.4m Class E (ISIN DE000A0GYFM9): affirmed at 'BBsf';
     Outlook revised to Negative from Stable

The affirmations reflect that the transaction's performance is
above Fitch's expectations.  This is driven by the high cure and
removal rate since closing.  Cumulative realized losses are at
0.28% and three-month-plus arrears are fairly stable at around
1.0%.

Following the time call as of the early redemption date on
November 28, 2011, the class A1+ to C notes were paid in full and
the class D notes were partially redeemed.  The remaining
outstanding notes reflect the amount of overdue reference claims
as of the early redemption date less net proceeds received from
synthetic excess spread, cures and recoveries as well as removals
(due to breaches of eligibility criteria) since the call date.
The outstanding note balance as of the May 2012 payment date was
EUR43.0 million.  The remaining protected portfolio amount stands
at EUR1.6 billion.

Fitch expects synthetic excess spread and proceeds from cures and
late recoveries to cover losses for the respective rating
scenarios until the class D and E notes are repaid.  Since the
available synthetic excess spread depends on the portfolio
repayment rate as well as the amount of cures and removals, which
have been volatile over the past payment periods, the Outlook for
the class E has been revised to Negative from Stable.

The transaction is a synthetic securitization referencing a
portfolio of residential mortgage loans originated by Postbank
Bank AG.



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I T A L Y
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* ITALY: Moody's Downgrades Sub-Sovereign Ratings
-------------------------------------------------
Moody's Investors Service has downgraded the long-term issuer and
debt ratings of 23 Italian sub-sovereign entities, including
regional and local governments (RLGs) as well as two associated
entities. The downgrades were prompted by the weakening of the
Italian government's credit profile, as captured by Moody's
recent downgrade of Italy's government bond rating to Baa2 from
A3.

Further to the action, the outlooks on Italian sub-sovereign
ratings remain negative in line with the outlook on the sovereign
rating.

Ratings Rationale

The deterioration in Italy's sovereign creditworthiness has
affected Italian sub-sovereign entities to varying degrees.

The centralized architecture of the local public sector in Italy
establishes close operational and financial linkages between the
national and peripheral governments. Although this is well-
established and designed to ensure the stability of the RLG
finances, the institutional framework does not grant RLGs
sufficient autonomy to withstand a deterioration of the sovereign
rating. RLGs are contributing to Italy's fiscal consolidation
through fiscal tightening measures imposed by the central
government. Lower state resources and stricter budgetary
restraints are in turn resulting in increased budgetary rigidity
and worsened budgetary performance.

Moody's has downgraded sub-sovereign issuers that were previously
positioned within the A1-Baa1 rating range by two rating notches,
mirroring the change in the sovereign rating. Conversely, sub-
sovereign ratings that were previously positioned at Baa2 and
Baa3 have been lowered by one rating notch to Baa3 and Ba1,
respectively, to reflect greater tolerance of lower ratings to
sovereign credit deterioration.

Further to the action, Italian sub-sovereign ratings can continue
to be grouped as follows, although the composition of each group
has shifted: (1) issuers with ratings above that of the
sovereign, (2) issuers rated at the sovereign level, and (3)
issuers rated below the sovereign.

A detailed list of the issuers and ratings affected by this
rating action is provided further below.

- ENTITIES RATED ABOVE THE SOVEREIGN

Moody's has downgraded the entities in this group by two rating
notches. Entities in this group include the Autonomous Province
of Bolzano, the Autonomous Province of Trento and its financial
company Cassa del Trentino, and the Region of Lombardy.

Bolzano and Trento were downgraded to A3 from A1, and remain
rated two notches above Italy's Baa2 sovereign rating. Key
features supporting their higher credit quality include: (i)
their statutory independence, which provides a greater degree of
financial and legislative autonomy and is expected to continue
insulating them from the weakening sovereign environment; (ii)
their exceptionally strong fiscal positions and budgetary
flexibility, which provides them with the scope to implement
large-scale fiscal adjustments; and (iii) their very low exposure
to financial market dislocations. At the same time, Cassa del
Trentino's A1 rating was downgraded to A3 with a negative
outlook, mirroring the action on the Autonomous Province of
Trento.

Lombardy was downgraded to Baa1 from A2, and remains rated one
notch above Italy's Baa2 sovereign rating. Unlike the two
autonomous provinces, Lombardy lacks special constitutional
status, and as such it is not insulated from financial exposure
to the sovereign. However, it benefits from Italy's largest and
most diversified economic base, generating about 20% of national
GDP. Furthermore, its large budget and fiscal flexibility,
combined with low debt, enable it to implement large-scale fiscal
adjustments in response to budgetary restraints.

- ENTITIES RATED AT THE SOVEREIGN LEVEL

Moody's has downgraded the entities in this group to Baa2 -- the
same level as the sovereign rating -- from A3. This group
comprises seven regions, three cities and one government-related
issuer (Finlombarda).

Moody's does not view these entities as having special
characteristics that could support ratings higher than that of
the sovereign. The tight financial and operational linkages
between the state and these RLGs leads to comparable levels of
credit risk. Although these entities generally display medium-to-
large economic bases, good financials, and low-to-moderate
contingent liabilities, they remain dependent on state transfers
and central government's decisions affecting their finances. The
downgrade of Lombardy's financial company Finlombarda to Baa2
reflects Moody's assessment of the degree of subordination to its
sole shareholder, Lombardy, which is rated one notch above at
Baa1.

This group also includes the state-backed issuances of the
regions of Umbria and Sicily, which are fully serviced by the
central government and remain aligned to the sovereign rating.

- ENTITIES RATED BELOW THE SOVEREIGN

Moody's has downgraded entities in this group by one or two
notches to reflect their tight budgetary position and high debt,
including contingent liabilities, and to preserve the ordinal
ranking of their credit quality relative to the sovereign. The
group includes six regions and two cities.

The Regions of Abruzzo and Piedmont were downgraded by two
notches to Baa3 from Baa1 to reflect their tight budgets,
including cash flows, and moderate-to-high debt. The City of
Civitavecchia was also downgraded to Baa3 from Baa1 to reflect
its weak budgetary position and growing debt.

The Regions of Lazio, Campania, Calabria and Molise were
downgraded by one notch to Baa3 from Baa2. These issuers feature
low capacity to withstand a deteriorating operating environment
and to face budgetary restraints, in light of their tight
budgets, high debt and contingent liabilities.

The one-notch downgrade of the City of Naples to Ba1 from Baa3
reflects Moody's assessment of Naples' fragile budgetary
position, high debt and exposure to financial risks off-balance
sheet. Naples is particularly exposed to the pressure arising
from budgetary restraints imposed by the central government,
given its high dependence on state resources and the systemic
pressure stemming from its weak and demanding socio-economic
environment.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The negative outlooks on Italian sub-sovereigns mirror the
negative outlook on Italy's sovereign rating and reflect systemic
pressure. Italian sub-sovereign ratings are likely to follow the
trajectory of Italy's government rating. An imminent
deterioration of a given RLG's financial profile and its ability
to service its debt obligations would also trigger a downward
rating action.

A stabilization of the outlooks or an upgrade of Italian sub-
sovereign ratings will require a stabilization or upgrade of the
sovereign rating, or evidence of a given RLG's capacity to
display comparatively stronger credit fundamentals and ability to
withstand the deterioration of the operating environment.

RATINGS AFFECTED

- ENTITIES RATED ABOVE THE SOVEREIGN

  - Autonomous Province of Bolzano: issuer rating downgraded to
A3, with negative outlook, from A1

  - Autonomous Province of Trento: issuer rating downgraded to
A3, with negative outlook, from A1

  - Region of Lombardy: issuer and debt ratings downgraded to
Baa1, with negative outlook, from A2

  - Cassa del Trentino SpA: issuer and debt ratings downgraded to
A3, with negative outlook, from A1

- ENTITIES RATED AT THE SOVEREIGN LEVEL

  - Region of Basilicata: issuer rating downgraded to Baa2, with
negative outlook, from A3

  - Region of Liguria: debt rating downgraded to Baa2, with
negative outlook, from A3

  - Region of Umbria: issuer and debt ratings downgraded to Baa2,
with negative outlook, from A3; senior secured debt rating
downgraded to Baa2 from A3

  - Region of Veneto: issuer and debt ratings downgraded to Baa2,
with negative outlook, from A3

  - Region of Puglia: debt rating downgraded to Baa2, with
negative outlook, from A3

  - Region of Sardinia: debt rating downgraded to Baa2, with
negative outlook, from A3

  - Region of Sicily: issuer and debt ratings downgraded to Baa2,
with negative outlook, from A3; senior secured debt rating
downgraded to Baa2 from A3

  - City of Milan: issuer and debt ratings downgraded to Baa2,
with negative outlook, from A3

  - City of Siena: issuer rating downgraded to Baa2, with
negative outlook, from A3

  - City of Venice: issuer and debt ratings downgraded to Baa2,
with negative outlook, from A3

  - Finlombarda SpA: issuer rating downgraded to Baa2, with
negative outlook, from A3

- ENTITIES RATED BELOW THE SOVEREIGN

  - Region of Abruzzo: issuer and debt ratings downgraded to
Baa3, with negative outlook, from Baa1

  - Region of Calabria: issuer rating downgraded to Baa3, with
negative outlook, from Baa2

  - Region of Campania: issuer and debt ratings downgraded to
Baa3, with negative outlook, from Baa2

  - Region of Lazio: debt rating downgraded to Baa3, with
negative outlook, from Baa2

  - Region of Molise: issuer and debt ratings downgraded to Baa3,
with negative outlook, from Baa2

  - Region of Piedmont: issuer and debt ratings downgraded to
Baa3, with negative outlook, from Baa1

  - City of Civitavecchia: issuer and debt ratings downgraded to
Baa3, with negative outlook, from Baa1

  - City of Naples: debt rating downgraded to Ba1, with negative
outlook, from Baa3

Rating Methodologies Used

The principal methodologies used in rating Italian RLGs were
Regional and Local Governments Outside the US published in May
2008, and The Application of Joint Default Analysis to Regional
and Local Governments published in December 2008. The principal
methodology used in rating Italian GRIs was Government-Related
Issuers: Methodology Update published in July 2010.


* ITALY: Moody's Cuts Debt & Deposit Ratings of Various Banks
-------------------------------------------------------------
Moody's Investors Service has downgraded by one to two notches
the long-term debt and deposit ratings for 10, and the issuer
ratings for 3, Italian financial institutions, prompted by the
weakening of the Italian government's credit profile, as captured
by Moody's downgrade of Italy's government bond rating to Baa2
from A3 on 13 July 2012. The long-term debt and deposit ratings
of one bank were affirmed.

Ratings Rationale

The actions follow the weakening of the Italian government's
credit profile, as captured by Moody's downgrade of Italy's
government bond rating to Baa2 from A3, with a negative outlook.

The ratings declined by one notch for 7 of the affected
institutions, and by two notches for remaining 6. The short-term
ratings for 3 banks have also been downgraded by one notch,
triggered by the long-term ratings changes.

Along with the increase in the risk of sovereign bond defaults,
the downgrade of Italy's long-term ratings to Baa2 also indicates
a similarly increased risk that the government might be unable to
provide financial support to its banks in financial distress. As
a consequence, Italian banks with standalone ratings at or close
to the Baa2, and higher debt and deposit ratings as a result of
an expectation of systemic support , have seen the support uplift
in their debt ratings reduced by one or two notches.

The reduced expectation of systemic support that prompted the
rating actions follows downgrades of several Italian banks taken
on May 14, 2012. The revised standalone credit assessments
announced on 14 May were set to be resilient to a degree of
further stress, and reflected the banks' substantial exposures to
the Italian economy and the Republic's credit worthiness. As a
result, those earlier actions largely limited the extent of the
rating actions taken to changes in the credit enhancement
associated with systemic support. Accordingly, the standalone
ratings, in almost all cases, proved resilient to the sovereign
downgrade.

Banks are typically rated on a standalone basis no higher than
the government's rating due to multiple channels of shared
exposure and contagion. Limited exceptions are possible where
there is external support or where a bank has substantial assets,
revenues and financing resources domiciled outside their home
environment, and where direct and indirect credit exposure to the
sovereign is limited. However, Italian banks' substantial
exposure to the domestic economy -- coupled with high direct
exposure to sovereign debt -- have resulted in standalone credit
assessments that are no higher than the sovereign rating. As a
result of these considerations, any further sovereign downgrade
would likely result in a commensurate lowering of many banks
standalone and debt and deposit ratings (see Moody's Sector
Comment "How Sovereign Credit Quality May Affect Other Ratings"
published 13 February, 2012).

For the two affected Government-related issuers (GRIs), Cassa
Depositi e Prestiti and Ismea, their debt and issuer ratings were
lowered to the same rating level as the sovereign given their
high default correlation with the Italian government. For further
details of the rating actions, see the specific sections for the
two GRIs later in the press release.

What Could Move The Ratings Up/Down

Upgrades of the banks' ratings are unlikely in the near term,
given the negative outlooks on the ratings as well as the
sovereign's rating. However, a limited amount of upwards rating
pressure could develop if any bank substantially improves its
credit profile and resilience to the prevailing conditions. This
may occur through increased standalone strength, e.g. bolstered
capital and liquidity buffers, work-out of asset quality
challenges or improved earnings. Improved credit strength could
also result from external support; for example, through a change
in ownership or the receipt of extra capital or liquidity
injections.

Several factors could exert further downwards rating pressure,
such as (i) increasing funding stress and reliance on central
bank support, which could raise pressure on banks to deleverage,
with adverse consequences for asset quality; (ii) a prolonged
recession, which could similarly further exacerbate already
adverse asset-quality trends and impair capital; or (iii) further
weakening of the Italian government's credit strength.

BANK-SPECIFIC RATING CONSIDERATIONS

UniCredit

The long-term deposit and debt ratings were downgraded to Baa2,
in line with the Italian sovereign rating, from A3. The C- BFSR,
mapping to a standalone credit assessment of baa2 was affirmed at
its current level, which is in line with the sovereign rating.
The outlook is negative on all ratings, in line with the
sovereign, and with other Italian banks. Moody's notes that
despite UniCredit's substantial international activities, its
important exposure to its domestic market means that its
standalone rating is constrained by the level of the sovereign
rating, as is the case for other Italian banks rated by Moody's.

UniCredit Leasing

UniCredit Leasing's long and short-term issuer ratings were
downgraded to Baa3/Prime-3 from Baa2/Prime-2. The outlook remains
negative and reflects that of the parent UniCredit (Baa2; C-
/baa2, negative).

According to Moody's, the downgrade follows the downgrade of the
parent bank, which reduces the ratings uplift for the issuer
rating, despite Moody's view of a very high probability of
parental support from UniCredit.

Intesa Sanpaolo

The long-term deposit and debt ratings were downgraded to Baa2,
in line with the Italian sovereign rating, from A3, thus
eliminating the notch of systemic support applied previously. The
standalone BFSR was affirmed at C-, however this now maps to a
standalone credit assessment of baa2 (previously baa1), also in
line with the sovereign rating. The outlook is negative on all
ratings, in line with the sovereign. Moody's notes that Intesa's
business is almost entirely domestic in nature, and as such its
standalone rating is constrained by the sovereign rating,
resulting in the lowering of the standalone credit assessment.

Banca CR Firenze (Carifirenze)

The long-term deposit and debt ratings were downgraded to Baa2
with negative outlook. This is in line with both the parent's
(Intesa Sanpaolo) and the sovereign's ratings. This rating action
eliminated the two notches of parental support from Intesa
Sanpaolo, previously incorporated into CR Firenze's long-term
deposit and debt ratings, given the now lower long-term rating of
the parent, which forms the basis for assessing parental support.
The bank's C- BFSR, mapping to a standalone credit assessment of
baa2, was not affected. The outlook is negative on all ratings,
in line with the sovereign, and with other Italian banks.

Banca IMI

The long-term deposit and debt ratings were downgraded to Baa2
from A3. This is in line with both the parent's (Intesa Sanpaolo)
and the Italian sovereign's ratings. This rating action
eliminated the two notches of parental support from Intesa
Sanpaolo, previously incorporated into Banca IMI's long-term
deposit and debt ratings, given the now lower long-term rating of
the parent, which forms the basis for assessing parental support.
The bank's C- BFSR, mapping to a standalone credit assessment of
baa2, was not affected. The outlook is negative on all ratings,
in line with the sovereign, and with other Italian banks.

Banca Monte Parma

Banca Monte Parma's long-term deposit rating was downgraded to
Baa2 from Baa1, directly following the downgrade of the ratings
of its parent Intesa Sanpaolo. This rating action reduces to one
from two notches the level of parental support from Intesa
Sanpaolo, given the now lower long-term rating of the parent,
which forms the basis for assessing parental support. The bank's
D+ BFSR, mapping to a standalone credit assessment of baa3, was
unaffected. The outlook on all ratings remains negative, in line
with the sovereign, and with other Italian banks.

Banca Nazionale del Lavoro

Banca Nazionale del Lavoro's long-term Baa2 deposit rating was
affirmed. The other ratings and the negative outlook are
unaffected.

The affirmation is based on Moody's assessment of a very high
probability of parental support from BNP Paribas (A2; BFSR C-/BCA
baa2, stable) and a high probability of systemic support, which
results in two-notches of rating uplift from the ba1 standalone
credit assessment. The uplift has not changed and now stems from
parental support only -- from one notch of parental support and
one notch of systemic support previously -- following the
downgrade of Italy's rating.

Cassa di Risparmio di Parma e Piacenza (Cariparma)

The long-term deposit and debt ratings were downgraded to Baa2,
in line with the Italian sovereign rating, from Baa1, thus
eliminating the current one notch of systemic support. The bank's
C- BFSR, mapping to a standalone credit assessment of baa2, was
not affected. The outlook is negative on all ratings, in line
with the sovereign, and with other Italian banks. Moody's high
expectation of parental support from Credit Agricole(CASA) does
not actually result in any uplift for the banks' ratings, given
that Cariparma's standalone credit assessment of baa2 is in line
with CASA's adjusted standalone credit assessment of baa2.

Banca Popolare Friuladria (Friuladria)

The long-term deposit and debt ratings were downgraded to Baa2,
in line with the Italian sovereign rating, from Baa1, so reducing
parental support from its parent, Cariparma, to one notch, given
the now lower long-term deposit rating of the parent, which forms
the basis for assessing parental support. The bank's D+ BFSR,
mapping to a standalone credit assessment of baa3 was not
affected. The outlook is negative on all ratings, in line with
the sovereign, and with other Italian banks.

Banca Carige

Banca Carige's long and short-term deposit ratings were
downgraded to Baa3/Prime-3 from Baa2/Prime-2. The other ratings
and the negative outlook are unaffected.

The key driver for the one-notch downgrade of the deposit ratings
is the downgrade of Italy. At this Baa2 rating level of the
government, Moody's assessment of a moderate probability of
systemic support in the event of a financial crisis results in no
uplift from the baa3 standalone credit assessment (from one notch
of uplift previously), under Moody's joint default analysis (JDA)
methodology.

Credito Emiliano

Credito Emiliano's long and short-term deposit ratings were
downgraded to Baa3/Prime-3 from Baa2/Prime-2. The other ratings
and the negative outlook are unaffected.

The one-notch downgrade of the deposit ratings follows the
downgrade of Italy. At this rating level of the Italian
government, Moody's assessment of a moderate probability of
systemic support in the event of a financial crisis provides no
uplift from the baa3 standalone credit assessment (from one notch
of uplift previously), under Moody's joint default analysis (JDA)
methodology.

GE Capital SpA

GE Capital Spa's long-term deposit rating was downgraded to Baa2
from Baa1. The outlook remains negative.

According to Moody's, the downgrade reflects the downgrade of
Italy. GE Capital's business is domestic and as such, its rating
is constrained by the sovereign rating, despite parental support.
In Moody's view, parental support from General Electric Capital
Corporation (rated A1/P-1) continues to be very high, but is
likely to be linked to the longer-term prospects for the business
in Italy. As a result, Moody's has lowered the parental support
uplift provided to the bank's deposit rating to three from four
notches. This uplift is based on Moody's expectation of (i) a
very high probability of parental support from General Electric
Capital Corporation; and (ii) low probability of systemic support
for GE Capital Spa in the event of a financial crisis.

Cassa Depositi e Prestiti

The government-related issuer (GRI) Cassa Depositi e Prestiti's
long-term issuer and debt ratings have been downgraded to Baa2,
with a negative outlook. This is at the same level as the Italian
government, given its 70% government ownership and the strong
financial and operational linkages with the government, reflected
in its public policy function. The outlook is negative in line
with the negative outlook on the sovereign.

Istituto Servizi Mercato Agricolo Alimentare (ISMEA)

The GRI ISMEA's long-term issuer rating has been downgraded to
Baa2, with a negative outlook. This is at the same level as the
Italian government, given its full government ownership and the
strong financial and operational linkages with the government,
reflected in its public policy function. The outlook is negative
in line with the negative outlook on the sovereign.

The methodologies used in these ratings were Moody's Consolidated
Global Bank Rating Methodology published in June 2012, Finance
Company Global Rating Methodology published in March 2012, and
Government-Related Issuers: Methodology Update published in July
2010.



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K A Z A K H S T A N
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KAZAKHSTAN MORTGAGE: Fitch Assigns 'BB/BB+' LT Currency Ratings
---------------------------------------------------------------
Fitch Ratings has assigned Kazakhstan Mortgage Company (KMC) a
Long-term foreign currency rating of 'BB' and Long-term local
currency rating of 'BB+', and a Short-term foreign currency
rating of 'B'.  The Outlooks for the Long-term ratings are
Positive.  The rating action also affected the outstanding bonds
of the company.

KMC's ratings reflect the company's ownership by the government,
its strategic importance in the area of social housing and hence
potential government support.  Fitch uses its public-sector
entities rating criteria and applies a top-down approach in its
analysis of KMC.  The Positive Outlooks reflect the sovereign
rating and expected capital injection from the state.

Fitch notes that the resumption of explicit government support in
the form of capital injections leading to improvement of
company's financial position and profitability could be positive
for the ratings.  Conversely, a weakening or absence of state
support visible primarily in a delay or lack of the planned state
recapitalization of KMC would lead to Fitch to change its
approach to the rating to a standalone basis (from the top down),
which could result in a multiple-notch downgrade.

KMC acts as the government's agent in the area of affordable
housing provision and plays a crucial role in implementing
government social housing programs for low and middle income
households. Additionally, KMC contributes to the stability and
development of Kazakhstan's financial sector through refinancing
mortgage loans of commercial banks, securitization of mortgages
and by issuing bonds.

The costs of KMC's financing have increased considerably since
2008 due to distress in the financial markets.  The company's
average annual effective financing cost exceeded 11% in 2011,
which outran the average yield on KMC's mortgage loan portfolio
of 9%.  This led to negative net interest income and KZT6.2
billion losses in 2011.  Fitch expects that budgeted capital
injections from the government will decrease financing costs and
gradually revive KMC's profitability in the medium term.

KMC's absolute debt level has been relatively stable over the
past five years.  However, the leverage (debt to equity ratio)
weakened to 5x in 2011 from 2.5x in 2008 due to equity erosion
caused by lack of capital injection from the state and weak
profitability.  The bulk of KMC's debt is in floating-rate
domestic bonds, which accounted for 70% of its liabilities by end
2011.  In addition, KMC is exposed to unhedged forex and
derivative risk in the form of a US$100 million bank loan.  The
company also has a long-term subsidized loan from the government.

KMC has a sound liquidity cushion: the company's cash and
deposits at end-2011 totaled KZT14 billion, which is 2x higher
the debt due in 2012.  This significantly mitigates refinancing
risk and Fitch notes that urgent support from the government is
unlikely to be required by KMC in the near term.  In general, KMC
has a relatively long-term debt maturity profile spread out until
2027 with domestic bond repayment concentrated in 2012 to 2018.

KMC expects to receive KZT107.8 billion of capital injections as
part of an approved state program 'Affordable housing 2020' over
the period of 2013-2020.  The government is also expected to
provide explicit guarantees for KMC's domestic bonds in the
amount of KZT56.5bn.  This will strongly improve the company's
equity and will positively influence its profitability.  The
company received capital injections during 2000-2007 upon
establishment and as part of the state program 'Affordable
housing 2005-2007'.



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


XELLA INTERNATIONAL: S&P Affirms 'B+' Corporate Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Luxembourg-registered building products manufacturer Xella
International S.A. (Xella) to negative from stable. "At the same
time, we affirmed our long-term corporate credit on Xella at
'B+'," S&P said.

"In addition, we affirmed our 'B+' issue rating on the EUR300
million senior secured notes issued by Xella's financing vehicle
Xefin Lux S.C.A. The recovery rating on the notes is '3',
reflecting our expectation of meaningful (50%-70%) recovery in
the event of a payment default," S&P said.

"The outlook revision reflects our view that headroom under
Xella's leverage covenant (net debt to EBITDA before one-off
items) will decline to less than 10% for the next 12 months. This
is due to the meaningful tightening of this covenant, to 2.50x on
Sept. 30, 2013, from 3.78x on March 31, 2012. We are therefore
lowering our assessment of Xella's liquidity to 'less than
adequate' from 'adequate,' as defined in our criteria. The
negative outlook also incorporates our view that Xella faces
difficult operating conditions because of the economic
uncertainties in its central and eastern European markets
(excluding Germany)," S&P said.

"We note that Xella's credit metrics were slightly weaker in
financial 2011 than we previously forecast when we assigned the
rating in May 2011. For financial 2012, we estimate that Xella's
credit metrics will remain highly leveraged, with Standard &
Poor's-adjusted debt to EBITDA of 8.0x (3.7x excluding the
shareholder loan) and funds from operations (FFO) to debt of
about 8.1% (17.6% excluding the shareholder loan)," S&P said.

"The negative outlook reflects our view of Xella's tightening
leverage covenant over the next 12 months, combined with
challenging macroeconomic conditions in Europe that could
adversely affect its performance," S&P said.

"We could lower the rating if Xella breaches the leverage
covenant or if its operating performance is materially weaker
than our base case, causing its credit metrics to deteriorate
below our current forecast (including FFO to debt in high-single
digits)," S&P said.

"We could revise the outlook to stable if Xella is able to obtain
covenant relief providing adequate (more than 15%) compliance
with its leverage covenant, and if we see a sustained improvement
in macroeconomic conditions in the company's central and eastern
European markets," S&P said.



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


CITIBANK ZAO: Fitch Upgrades Viability Rating From 'bb+'
--------------------------------------------------------
Fitch Ratings has affirmed three foreign-owned Russian banks'
Long-term Issuer Default Ratings at 'BBB+'.  The Outlook on ZAO
Raiffeisenbank and ZAO Citibank is Stable and the Outlook on ZAO
UniCredit Bank is Negative.  At the same time, the agency has
upgraded the three banks' Viability Ratings (VR) to 'bbb-' from
'bb+'.

The three banks' IDRs are driven by potential support from
foreign shareholders.  ZAO UniCredit Bank is 100%-owned by
UniCredit S.p.A. (UC; 'A-'/Negative) through its Vienna-based
subsidiary UniCredit Bank Austria AG (UBA; 'A'/Stable).  ZAO
Raiffeisenbank is a 100%-subsidiary of Raiffeisen Bank
International AG (RBI, 'A'/Stable).  ZAO Citibank is fully-owned
by Citigroup Inc. ('A'/Stable).

The Negative Outlook on ZAO UniCredit Bank's Long-term IDRs
reflects the Outlook on UC's Long-term IDR.  If UC is downgraded,
UCB's Long-term IDR would also be downgraded.  A downgrade of
Russia's Country Ceiling ('BBB+') would also cause a downgrade of
UCB's Long-term IDR.

The Long-term IDRs of ZAO Raiffeisenbank and ZAO Citibank are
currently constrained by Russia's Country Ceiling and could be
upgraded or downgraded if a change in Russia's sovereign ratings
resulted in a change in the Country Ceiling.  A two-notch
downgrade of either RBI or Citigroup could also drive a downgrade
of their Russian subsidiaries, although this is not currently
anticipated given the Stable Outlooks on the parents' ratings.

The upgrades of the three banks' VRs reflect Fitch's re-
assessment of the banks' underlying credit strengths and also
factor in the recent positive track record of the banks'
performance through the crisis.  The banks have demonstrated
sustainable profitability through the cycle, supported by their
well-established client franchises; moderate credit costs
resulting from access to better quality customers and sound risk
management; generally stable funding bases, resulting in lower-
than-peers funding costs; and good cost controls.

Asset quality has stabilised, while loan impairment in the crisis
for the three banks was somewhat below peers.  Capital positions
were supported by internal capital generation, which remains
strong.  At end-Q112, ZAO Unicredit Bank reported NPLs (loans
overdue by more than 90 days) of 3.7% and a Basel II Tier 1 ratio
of 10.9%.  At end-2011, ZAO Raiffeisenbank reported NPLs of 4.6%
and a Basel II Tier 1 ratio of 15.2% and there were no
significant changes in these parameters at end-Q112.  ZAO
Citibank maintained exceptionally good loan quality (with
corporate NPLs below 1% at end-Q112 and less than 1% NPLs
generation in retail), and the regulatory capital ratio is
expected to be sound at above 15% even after a planned USD150m
dividend payment and potential further income distributions.

Liquidity positions are comfortable, underpinned by customer
deposit inflows.  ZAO UniCredit Bank and ZAO Raiffeisenbank are
currently net lenders to their parent institutions, reflecting
both excess liquidity from short-term deposits and management of
risk-weighted assets at the parent level.  ZAO Citibank's
liquidity is supported by a very low loans/deposits ratio and
large holdings of sovereign debt (nearly 40% of the total
assets), eligible for refinancing operations with the Central
Bank of Russia.

At the same time, the VRs also consider expected cyclicality in
the performance of the Russian economy and therefore the banks,
modest market shares in a sector dominated by state-owned banks,
and significant foreign currency lending.  The VRs also reflect
relatively high loan concentrations by individual borrower at ZAO
Raiffeisenbank and ZAO UniCredit Bank, significant exposure to
the real estate segment at ZAO Raiffeisenbank, high depositor
concentrations at ZAO UniCredit Bank, and ZAO Citibank's more
limited franchise.

Further upside potential for the VRs is limited given the current
level of Russia's sovereign ratings ('BBB'/Stable) and the banks'
moderate market shares and likely cyclical performance.  The VRs
could come under downward pressure if there was an unexpected
sharp deterioration in asset quality, or if an increase in
problems at any of the parent banks resulted in markedly higher
subsidiary funding costs, undermining their current business
models.

The rating actions are as follows:

ZAO Raiffeisenbank

  -- Long-term foreign and local currency IDRs: affirmed at
     'BBB+'; Outlook Stable
  -- Short-term foreign currency IDR: affirmed at 'F2'
  -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook
     Stable
  -- Support Rating: affirmed at '2'
  -- Senior unsecured debt: affirmed at 'BBB+'/F2 and at
     'AAA(rus)'
  -- Senior unsecured upcoming RUB-denominated bonds: affirmed at
  -- Long-term 'BBB+ (exp)' and National Long-term
'AAA(rus)(exp)'
  -- Viability Rating: upgraded to 'bbb-' from 'bb+'

ZAO UniCredit Bank

  -- Long-term foreign and local currency IDRs: affirmed at
     'BBB+'; Outlook Negative
  -- Short-term foreign and local currency IDRs: affirmed at 'F2'
  -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook
     Stable
  -- Support Rating: affirmed at '2'
  -- Viability Rating: upgraded to 'bbb-' from 'bb+'

ZAO Citibank

  -- Long-term foreign currency IDR: affirmed at 'BBB+'; Outlook
     Stable
  -- Short-term foreign currency IDR: affirmed at 'F2'
  -- National Long-term rating: affirmed at 'AAA(rus)'; Outlook
     Stable
  -- Support Rating: affirmed at '2'
  -- Viability Rating: upgraded to 'bbb-' from 'bb+'


VNESHECONOMBANK: S&P Assesses Stand-alone Credit Profile at bb
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BBB' rating to
the sixth series of senior loan-participation notes (LPNs) issued
on July 5, 2012, by Russia-based Vnesheconombank (VEB; foreign
currency BBB/Stable/A-3; local currency BBB+/Stable/A-2) via VEB
Finance PLC. The LPNs' nominal amount is $1.0 billion and they
form part of VEB's large LPN program. The notes have a 10-year
maturity and a fixed 6.025% interest rate paid semiannually.

The ratings on the notes are equalized with the long-term foreign
currency issuer credit rating on VEB.

"The long-term ratings on VEB are equalized with those on the
Russian Federation (foreign currency BBB/Stable/A-2; local
currency BBB+/Stable/A-2; Russia national scale 'ruAAA'),
reflecting our view of an 'almost certain' likelihood that the
Russian government would provide timely and sufficient
extraordinary support to VEB if necessary," S&P said.

S&P said in accordance with its criteria for government-related
entities, its view of an 'almost certain' likelihood of
extraordinary government support is based on its assessment of:

  - VEB's "critical" role to the Russian Federation as the prime
    public development institution of the government, which
cannot
    be readily undertaken by a private entity; and

  - VEB's "integral" link with the Russian Federation. This is
    Because of VEB's special status as a state corporation with
    strong oversight from the federal government and its proven
    track record of adequate extraordinary financial support in
    all circumstances.

"As a result, the foreign currency credit rating on VEB is three
notches higher than its stand-alone credit profile (SACP), which
we currently assess as 'bb'. The SACP is based on the 'bb' anchor
and our assessment of the bank's 'strong' business position,
'moderate' capital and earnings, 'moderate' risk position, 'above
average' funding, and 'adequate' liquidity, as our criteria
define
these terms," S&P said.



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


AA GROUP: In Administration on Late Payments & Trading Conditions
-----------------------------------------------------------------
Steel Guru, citing The Enquirer, reports that steelwork
specialist The AA Group has been placed in administration.

The Skelmersdale based fabricator and erector is now in the hands
of administrator Leonard Curtis, according to Steel Guru.

Steel Guru notes that the Enquirer said that the company blamed
its demise on late payments and dire trading conditions in the
steelwork sector.

One source told the Enquirer that "The company has been hit by a
reduction in structural steel volumes, the erosion of contract
margins, reduced credit with suppliers and extended payment terms
across the construction industry," Steel Guru says.

The AA Group was a supply chain partner for some of the country's
leading contractors.


CORIOLANUS LTD: S&P Lowers Rating on Series 66 Notes to 'CCC-'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
three credit default swaps between DeutscheBank AG London and
N.V. Slibverwerking Noord-Brabant, and on synthetic
collateralized debt obligation (CDO) transaction--Coriolanus
Ltd.'s series 66.

"The rating actions follow our discovery of an error, which led
to our March 5, 2012 rating actions on these transactions. We
raised the ratings on these notes as part of our regular monthly
synthetic CDO surveillance. In taking those rating actions, we
considered the synthetic rated overcollateralization (SROC)
results. However, when calculating the SROC results, we used
incorrect portfolio information," S&P said.

"We have lowered the ratings on these four transactions to
reflect
updated portfolio and attachment point (the loss threshold of a
reference portfolio) information and to correct the error. We
have lowered these ratings to the levels at which they meet our
SROC minimum cushion requirement. We have lowered our ratings on
the three credit default swaps to one notch above their ratings
before the March 5 rating actions, and we have lowered our rating
on Coriolanus' series 66 to the same rating level as it was
before the March 5 rating action," S&P said.

"SROC is a measure of the degree by which the credit enhancement
(or attachment point) of a tranche exceeds the stressed loss rate
assumed for a given rating scenario. SROC helps capture what we
consider to be the major influences of portfolio performance:
Credit events, asset rating migration, asset amortization, and
time to maturity," S&P said.

           STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

          http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

                    Rating
            To                From

Coriolanus Ltd.
EUR10 Million Variable Credit-Linked Secured Notes Series 66

            CCC- (sf)         BB (sf)

Deutsche Bank AG London and N.V. Slibverwerking Noord-Brabant
EUR156.311 Million Credit Default Swap
(Including A Tap Issuance EUR18.996 Million)

            CCC+srp (sf)      BB+srp (sf)

Deutsche Bank AG London and N.V. Slibverwerking Noord-Brabant
EUR84.27 Million Credit Default Swap
(Including A Tap Issuance Of EUR21,700 Million)

            CCC+srp (sf)      BB+srp (sf)

Deutsche Bank AG London and N.V. Slibverwerking Noord-Brabant
EUR29.39 Million Credit Default Swap

            Bsrp (sf)         BBB-srp (sf)


FOUR SEASON: Fitch Raises LT Issuer Default Rating to 'B'
---------------------------------------------------------
Fitch Ratings has upgraded Four Seasons Health Care (Guernsey)
Holdings Limited's (FSHC) Long-term Issuer Default Rating (IDR)
to 'B' from 'CC', removed it from Rating Watch Positive (RWP) and
simultaneously withdrawn this rating as FSHC does not carry any
debt under the new ownership structure.  In addition, Fitch has
assigned Elli Investments Limited an IDR of 'B'.  The Outlook is
Stable.

Fitch has also assigned Elli Finance (UK) Plc's senior secured
notes a rating of 'BB'/'RR1' and its super-senior revolving
credit facility (RCF) a rating of 'BB'/'RR1'.  Elli Investments
Limited's senior notes have been assigned a senior unsecured
rating of 'BB'/'RR1'.

The upgrade of FSHC's IDR is driven by the completion of the
acquisition of FSHC by Elli Investments Ltd., an entity
controlled by funds or limited partnerships managed or advised by
Terra Firma.  This transaction has resulted in refinancing of
FSHC's existing debt from the proceeds of the senior secured
notes (GBP350 million) and senior notes (GBP175 million) issued
and equity contribution (GBP345 million).  The completion of
FSHC's acquisition has resolved FSHC's previously high
refinancing risk and reduced its leverage to just over 6x (FY11:
7.2x).

Elli Investments Limited's IDR is supported by a leading position
in the independent UK elderly care market and solid relationships
with local authorities and NHS commissioners.  The rating also
reflects the company's focus on high dependency services in its
elderly care division, which is relatively resistant to the
recent trend towards domiciliary care.

The IDR is constrained by the company's high dependence on local
authorities funding (almost 70% of its funding).  Due to the
current downward pressure on local authorities' budgets, the
average level of fees funded by local authorities is expected to
remain under pressure in the coming years, below current and
expected inflation.  This may lead to a tightening in the
company's EBITDA margins.

The IDR is further constrained by relatively weak credit metrics.
Based on its conservative projections, Fitch expects a funds from
operations (FFO)-adjusted leverage of around 6.2x for 2012-2014
and FFO fixed charge coverage between 1.4x-1.5x.  Fitch
anticipates that Elli Investments Limited's liquidity will be
adequate with cash on balance sheet building up to EUR50 million
in 2014 driven by expected positive free cash flows, a fully
undrawn GBP40m revolving credit facility (RCF) and no short-term
debt maturities.

In its recovery analysis, Fitch has adopted the liquidation value
approach as the resultant enterprise value is higher than the
going concern enterprise value, primarily derived from the
group's freehold and long-leasehold properties.  Fitch believes
that a 30% discount on the assets' current market value is deemed
fair in a distress case.

Fitch has classified the GBP220m shareholder loans issued at Elli
Capital Ltd as 100% equity and therefore has excluded it from
leverage and coverage ratios.  The features of this instrument
match Fitch's perception of an equity-like instrument.

What Could Trigger A Rating Action

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:

  -- sustained profits and free cash flow generation that would
     enable FFO-adjusted leverage to decrease below 5x on a
     permanent basis and an improvement in FFO fixed charge
     coverage above 2.2x.

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

  -- weaker credit metrics such as FFO fixed charge coverage
below
     1.2x and FFO adjusted leverage above 6.5x on a sustained
     basis.


HONISTER CAPITAL: In Administration, Failed to Secure Insurance
---------------------------------------------------------------
mortgagestrategy reports that Honister Capital, which includes
advisory firms Burns Anderson, Sage Financial and Honister
Partners and its subsidiary, B-A Financial Ltd, went into
administration after it failed to secure professional indemnity
insurance.

Grant Thornton has been appointed administrator for the group.

Chief Executive Colman Moher told advisers they were no longer
able to write new business, with immediate effect, according to
Mortgagestrategy.

The report notes that Honister Capital Holdings will continue to
operate direct-to-consumer business Willis Owen, which will not
be affected by the move.

"Due to the history of some of our businesses, we have been
exposed to large claims relating to business written by advisers
who have long since left us and this has severely affected the
premiums we have had to pay.  The extent of policy excesses and
exclusions has compounded this . . . .  It is with great regret
that we have to inform you that we have been unable to obtain PII
cover for the coming year, which means Honister Capital Ltd and
its subsidiaries will be unable to trade.  The business has had
no choice but to enter into administration and consequently you
are no longer able to write new business with immediate effect,"
the report quoted Mr. Owen as saying.

Honister Capital was formed in June 2009, when it acquired the
principal advisory and direct businesses of The Money Portal Ltd
in a move that saw the rest of The Money Portal, including
national IFA Bates, go into administration with debts of GBP55
million.


NEW EDINBURGH: In Administration, Blames Economic Climate
---------------------------------------------------------
Scotsman.com reports that New Edinburgh Ltd (NEL) has gone into
administration.

New Edinburgh was formed as a joint venture 20 years ago, but
council chiefs said it had served its purpose and blamed the
current economic climate for the decision to stop further
investment, according to Scotsman.com.

The report notes that the company has no employees and its only
assets are a part-let office block near the Gogar roundabout and
30 acres of development land near Edinburgh Park station.

"NEL was set up to generate development and employment and it has
been highly successful in doing both. Since its creation in 1990,
it has created 7,000 jobs and been responsible for the
construction of 1.3 million square feet of office space . . . .
It has also generated millions of pounds in dividends for the
stakeholders that has been put to good use funding council
services for local residents," the report quoted Council Leader
Andrew Burns as saying.

New Edinburgh Ltd was set up by the city council and builders
Miller to develop Edinburgh Park.


NUVO BAR: Enters Liquidation; Owner Blames Recession
----------------------------------------------------
The Birmingham Post reports that Nuvo Bar Birmingham has gone
bust just three years after opening.

According to the report, the Brindleyplace cocktail lounge and
club, run by brothers Chris and Cos Papachristoforou, went into
liquidation following the intervention of HM Revenue and Customs.

The Birmingham Post relates that the brothers also run Edmunds
and Cielo restaurants at Brindleyplace.

The Brunswick Square bar is continuing to trade under the same
name while talks with liquidators continue, the report notes.

Chris Papachristoforou told the Birmingham Post that his other
ventures were not affected by the financial difficulties that
have hit Nuvo, which he blamed on the recession.

"We have gone into liquidation. We are in talks with the
liquidator to see where we stand with them. We are nevertheless
trading still as Nuvo," the report quotes Mr. Papachristoforou as
saying.  "We need to see what the outcome of the liquidators'
decisions will be in as far as the money that is owed to
creditors."

Mr. Papachristoforou said he was "not exactly sure" how much cash
was owed but it included unpaid VAT and PAYE. Debts to food and
drinks suppliers were "not so much," the report adds.

Nuvo Bar Birmingham is one of Birmingham's top bars.


RADECE PAPIR: Paper Mill Gets EUR15-Million Offer From Saray
------------------------------------------------------------
EUWID reports that the deadline for the submission of offers for
the assets of the insolvent Slovenian paper manufacturer Radece
papir has expired.  The report says the few bids received so far,
however, offer no certainty that the idle paper mill in Radece
can continue to operate in the future.

Insolvency administrator Borut Soklic told EUWID in an interview
that only two offers had been submitted by the expiry of the
deadline, including an interesting bid of some EUR15 million by
Ankara-based Turkish company Saray.  The offer, according to
EUWID, reportedly matches the assessed liquidation value of
EUR8.5 million for the real estates and EUR6.5 million for all
other assets of the insolvent company.  Saray's offer is now
under scrutiny but details will only be available in one to two
months, the administrator told EUWID.

According to the report, the insolvency administrator said French
supplier of smart cards technology and security identification
solutions Oberthur Technologies, that was viewed for a while as a
potential buyer, did not participate in the bidding in the first
place.  Oberthur has not made an offer, the report says.

As reported in the Troubled Company Reporter-Europe on Jan. 6,
2012, EUWID said Radece applied for the opening of compulsory
settlement proceedings and has filed a financial restructuring
plan with the District Court of Celje in December.  Radece blames
its financial situation on production difficulties, extended
machine downtime as well as soaring cotton linters and pulp
prices, which saw net losses amounting to almost EUR6.5 million
in the first nine months of the financial year 2011.

Radece Papir d.o.o. is Slovenia-based paper manufacturer. The
company runs two paper machines and employs a total of 372
people.  Radece papir d.o.o. operates as a subsidiary of G-M&M.


SUREWAY HEATING: Goes Into Liquidation After 40 Years
-----------------------------------------------------
Lemington Observer reports that Sureway Heating Services
has gone into liquidation.  The company went into liquidation on
July 4 with Timothy James Heaselgrave of Warwick-based The
Redfern Partnership LLP appointed as liquidator, the report says.

Steven Siddle, an employee of the firm for almost a decade,
expressed his shock, told Lemington Observer: "Employees were
informed on June 22 and had been working as normal with no
indication or communication up until this date. I was unaware
myself until June 28 as I had been on holiday.

"We're all in the dark - I'm owed wages let alone thousands of
pounds in redundancy money . . . it's a worrying time with both
me and my son affected but I'm hoping to now set up a business on
my own," the report quotes Mr. Siddle as saying.

Sureway Heating Services is a Leamington-based heating firm.  The
company traded for more than 40 years.


TWICKENHAM FILM: TSL Acquires Studio Out of Administration
----------------------------------------------------------
George Bevir at Broadcastnow.com reports that Twickenham Film
Studios has been bought out of administration.

Twickenham Studios Ltd (TSL), a consortium led by hotelier Sunny
Vohra, acquired the facility for an undisclosed amount, according
to Broadcastnow.com.

The report notes that the studios went into administration at the
start of the year.

TSL Managing Director Vohra has appointed Maria Walker, a post-
production supervisor who led the campaign to save the studios,
to the role of chief operating officer, the report notes.

The report discloses that Ms. Walker said a raft of improvements
would be made to the 100-year old studios, with the intention of
making the facility a "place of innovation".

"There has been a woeful lack of funding and there is a plan to
invest and bring the kit up to standard. . . .  There are repairs
that haven't been made - for example the lift doesn't work -- and
there will be improvements to things like the phone systems, the
wiring and the general updating of rooms," Ms. Walker told the
news agency in an interview.


W.J. BAKER: In Administration, Cuts 30 Jobs
-------------------------------------------
Construction Enquirer reports that Suffolk contractor W.J. Baker
(Gt. Barton) commonly known as Baker Construction has fallen into
administration with the loss of 30 jobs.

PricewaterhouseCoopers were appointed as administrators after the
company was hit by a lack of work and intense competition for
contracts, according to Construction Enquirer.

"The company has suffered significant losses in the recent past
and is unlikely to have a foreseeable future," the report quoted
PwC as saying.

Baker specialized in affordable housing developments, commercial
property and listed buildings.  At the firm's peak in 2010, it
had a turnover of GBP10 million and employed 70 staff.



===================
U Z B E K I S T A N
===================


UNIVERSAL BANK: Fitch Withdraws 'CCC/C' Issuer Default Ratings
--------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn Uzbekistan-based
Universal Bank's (UB) Long- and Short-Term foreign currency
Issuer Default Ratings (IDR) at 'CCC' and 'C', respectively.

The withdrawal follows the revocation of the bank's license for
foreign-currency operations by the Central Bank of Uzbekistan.
UB's other ratings are unaffected as the bank's ability to
service its obligations in national currency is not affected.

Privately-owned UB is one of the smallest (24th of 30) domestic
banks by assets (end-2011: USD27.4m), based in densely populated
eastern Uzbekistan where it operates a few banking outlets.  The
bank has a short track record as it was only founded in 2001.  In
late 2010, a regional private equity investment fund acquired
control of UB.  UB focuses on commercial banking operations with
predominantly corporate clients.  The new owner is focused on
franchise expansion and building management processes and
controls.

The rating actions are as follows:

  -- Long-Term foreign currency IDR: affirmed at 'CCC' and
     withdrawn

  -- Short-Term foreign currency IDR: affirmed at 'C' and
     withdrawn

  -- Long-Term local currency IDR: 'CCC'; unaffected

  -- Short-Term local currency IDR: 'C'; unaffected

  -- Viability Rating: 'ccc'; unaffected

  -- Support Rating: '5'; unaffected

  -- Support Rating Floor: 'No Floor'; unaffected



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


* Fitch Downgrades 11 Tranches of 7 Synthetic CDOs to 'Dsf'
-----------------------------------------------------------
Fitch Ratings has downgraded 11 tranches of 7 synthetic CDOs to
'Dsf' from 'Csf' and withdrawn seven ratings as follows:

Tsar 05:

  -- Class B: downgraded to 'Dsf' from 'Csf'
  -- Class C: downgraded to 'Dsf' from 'Csf'
  -- Class D: downgraded to 'Dsf' from 'Csf'
  -- Class E: downgraded to 'Dsf' from 'Csf'

Eirles 4 Limited Series 9

  -- Series 9: downgraded to 'Dsf' from 'Csf; rating withdrawn

RIJN Finance Company BV

  -- Tranches A1: downgraded to 'Dsf' from 'Csf'; rating
     withdrawn
  -- Tranche A2: downgraded to 'Dsf' from 'Csf'; rating withdrawn
  -- Eirles 4 Limited Series 10 downgraded to 'Dsf' from 'Csf';
     rating withdrawn
  -- Eirles 2 Limited Series 110 downgraded to 'Dsf' from 'Csf';
     rating withdrawn

Brooklands Euro Referenced Linked Noted 2002-2 Ltd

  -- Class A2: downgraded to 'Dsf' from 'Csf'; rating withdrawn
  -- Programma Dinamico S.p.A. due 14 May 2012 (CSFB PV2)
     downgraded to 'Dsf' from 'Csf'; rating withdrawn

The downgrade reflects the settlement of credit events, the
repurchase of the notes or the default of the charged assets.
The ratings have been withdrawn for transactions that no longer
have a rating above 'Dsf' outstanding.

Following the settlement of credit events, Tsar 05 class B, C, D
and E, Eirles 4 Limited Series 9 and RIJN Finance Company BV
tranche A1 and A2 have been written-down.

Eirles 4 Limited Series 10, Eirles 2 Limited Series 110 and
Brooklands Euro Referenced Linked Noted 2002-2 Ltd Class A2 have
been unwound. Fitch believes these tranches would have eventually
defaulted if they have not been repurchased by the counterparty.

Two charged assets (Eolo 2006-2 and Eolo 2006-3) of Programma
Dinamico S.p.A. due 14 May 2012 (CSFB PV2) defaulted on 24
September 2009.  As a result, Fitch believes that the transaction
proceeds were not sufficient to repay the notes at maturity.

The related transactions are synthetic CDOs referencing portfolio
of corporate debts and structured finance assets.


                            *********

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.


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