TCREUR_Public/120726.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, July 26, 2012, Vol. 13, No. 148

                            Headlines



D E N M A R K

DANSKE BANK: S&P Affirms 'BB+' Rating on Subordinated Debt


F R A N C E

FRANCE SOIR: Paris Commercial Court Orders Liquidation
PETROPLUS HOLDINGS: Petit-Couronne Plant Bid Deadline Extended
TRW AUTOMOTIVE: Minister Seeks Talks on Ramonchamp Plant's Future


G E R M A N Y

NURBURGRING AUTOMOTIVE: Sent to Administration, Owes EUR13 Mil.


I C E L A N D

LANDSBANKI ISLANDS: Iceland to Fight Interest Rate Penalties


I R E L A N D

DEKANIA EUROPE III: S&P Affirms 'CCC-' Ratings on 2 Note Classes
SMURFIT KAPPA: Fitch Affirms 'BB' Long-Term IDR; Outlook Stable
* IRELAND: Over 300 Hotels Need Debt Restructuring


K A Z A K H S T A N

CHIMPHARM JSC: S&P Assigns 'B-' Corp. Credit Rating; Outlook Pos.


L U X E M B O U R G

PINNACLE HOLDCO: Loan Upsizing No Impact on Moody's 'B2' CFR


N E T H E R L A N D S

ACCESS FINANCE: Fitch Rates US$350-Mil. Unsec. Unsub. Notes 'B'
DALDARIAN EUROPEAN I: S&P Cuts Rating on Class E Notes to 'CCC+'
NEPTUNO CLO II: S&P Raises Rating on Class D Notes to 'BB'


P O L A N D

POLIMEX-MOSTOSTAL SA: Enters Into Standstill Deal with Creditors


R U S S I A

ALROSA OJSC: Moody's Changes Outlook on 'Ba3' CFR to Positive
HMS HYDRAULIC: S&P Cuts Corp. Credit Rating to 'B+'; Outlook Neg
PROBUSINESSBANK: Fitch Affirms 'B-' LT IDR; Outlook Negative
SSMO LENSPETSSMU: S&P Affirms 'B/B' Corporate Credit Ratings


S P A I N

BANCO DE SABADELL: S&P Keeps 'BB+/B' Issuer Credit Ratings
PROMOTORA DE INFORMACIONES: Posts EUR61MM Net Loss in First Half
* S&P Affirms 'BB' Debt Ratings on 4 Valencian Universities


U N I T E D   K I N G D O M

BACCHUS 2007-1: S&P Lowers Rating on Class D Notes to 'CCC+'
ESENTUAL LTD: Loss of Major Contract Causes Administration
KUMUKU: Travelers in Limbo After Firm Falls Into Administration
MF GLOBAL: Trustee Considering Suits Against U.K. Staff
TITAN EUROPE: Fitch Assigns 'BB' Ratings on Two Note Tranches

* UK: Number of Scottish Corporate Insolvencies Hit Record High


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            *********


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D E N M A R K
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DANSKE BANK: S&P Affirms 'BB+' Rating on Subordinated Debt
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its issue ratings on
non-deferrable subordinated debt issued by banks in several
European countries. "These rating actions reflect our reading of
the European Commission's (EC's) proposal for a framework for
bank recovery and resolution," S&P said.

"On June 6, 2012, the EC published a draft directive on a bank
recovery and resolution framework. A bail-in tool introduced in
this framework will allow the government to transfer part of the
financial burden of a bank's rescue to investors. As stated in
our publication of May 10, 2012, 'How A Bail-In Tool Could Affect
Our Ratings On EU Banks,' we already anticipated lowering our
ratings on banks' nondeferrable subordinated bonds as a result of
the upcoming resolution regime," S&P said.

"We are removing any uplift for potential government support from
our issue ratings on nondeferrable subordinated instruments
issued by banks in Europe. The issue ratings now solely reflect
the banks' stand-alone credit profiles (SACPs). SACPs reflect our
view of a bank's credit risk without extraordinary support from
the government. We believe that by notching from the SACP, we
better capture the greater likelihood that government
intervention will not be available to support subordinated debt
issues. Until recently, notching from the long-term issuer credit
rating (ICR) was the norm for determining most of our ratings on
bank capital instruments," S&P said.

"From our reading of the EC proposal, the likelihood that
subordinated debt will benefit from government support will
become negligible. The upcoming EC regulation gives the
authorities sufficient flexibility to inhibit the performance of
subordinated debt without forcing a bank into liquidation, even
if there were a conflict with terms and conditions. We see an
important indicator of potential for 'bailing in' various
regulatory capital instruments, including subordinated debt, in
the regulators' ability to transfer assets and liabilities to
other legal entities -- such as a bridge bank, or a 'bad bank' --
in a way that could impede the servicing of subordinated debt,"
S&P said.

"To derive the ratings on subordinated bank debt, we deduct one
notch from the SACP of banks with SACPs in the 'bbb-' category or
higher, and two notches if the SACP is at 'bb+' or lower. Before
these rating actions, we already notched our ratings on
nondeferrable subordinated bank debt in 10 European countries
from the SACP, reflecting our assessment of the regulatory and
legal frameworks in these countries. We will now notch from the
SACP in all European countries," S&P said.

"The ICR and our ratings on other bank debt are not affected by
these rating actions. For senior obligations, notwithstanding the
proposed directive's intention of limiting the cost of bank
rescues for taxpayers, we observe that the proposed directive
does not prohibit extraordinary support and we would need to
understand governments' intentions and incentives as the draft
directive moves toward final legislation," S&P said.

"The impact of these rating actions is greatest for banks with
ICRs that factor in a high uplift from their SACPs because of our
expectation of future extraordinary government support. Our
ratings on subordinated debt issued by banks with low systemic
importance are not affected by these rating actions because they
already reflect the banks' SACPs only," S&P said.

"If a bank subsidiary benefits from group support and is located
in a non-European country where we continue to notch from the
ICR, we cap the rating on subordinated and hybrid capital
instruments issued by that subsidiary at no higher than, but
potentially lower than, the issue rating on the parent bank's
equivalent types of capital instruments. We consider that
restrictions on a parent bank's ability to pay its own
nondeferrable subordinated debt are likely to affect its ability
to support nondeferrable subordinated debt issued by
subsidiaries. We use this approach unless the ICR
on the subsidiary is higher than that on the parent," S&P said.

"With the momentum building internationally toward wider
implementation of resolution regimes, we will continue to monitor
regulatory and legal developments in other regions. Accordingly,
we expect to continue increasing the number of countries for
which we notch from the SACP instead of the ICR as more
resolution regimes are adopted and implemented globally," S&P
said.

RATINGS LIST
Downgraded

                                      To          From
Luxembourg
Banque et Caisse d'Epargne de l'Etat, Luxembourg
Nondeferrable subordinated debt       A           AA

Finland
Nordea Bank Finland PLC
Nondeferrable subordinated debt       A           A+

Pohjola Bank PLC
Nondeferrable subordinated debt       A           A+

Sampo Bank PLC
Nondeferrable subordinated debt       BBB-        BBB+

Sweden
Nordea Bank AB
Nondeferrable subordinated debt       A           A+

SBAB Bank AB
Nondeferrable subordinated debt       BBB+        A

Skandinaviska Enskilda Banken AB (publ)
Nondeferrable subordinated debt       BBB+        A

Svenska Handelsbanken
Nondeferrable subordinated debt       A           A+

Swedbank AB
Nondeferrable subordinated debt       BBB+        A

Swedish Export Credit Corp.
Nondeferrable subordinated debt       BBB+        AA

Norway
DNB Bank ASA
Nondeferrable subordinated debt       A-          A

Austria
Erste Group Bank AG
Nondeferrable subordinated debt       BBB         A-

HYPO NOE Gruppe Bank AG
Nondeferrable subordinated debt       BBB         A-

Oberoesterreichische Landesbank AG (1)
Nondeferrable subordinated debt       BBB-        A-

Raiffeisen Bank International AG
Nondeferrable subordinated debt       BBB         A-

Raiffeisen Zentralbank Oesterreich AG
Nondeferrable subordinated debt       BBB         A-

UniCredit Bank Austria AG (2)
Nondeferrable subordinated debt       BBB+        A-

(1) The 'AA+/Negative' ratings on Oberoesterreichische
Landesbank's guaranteed subordinated obligations, which benefit
from a guarantee from the State of Upper Austria (AA+/Negative/A-
1+), are not affected by this action.

(2) The 'AA' ratings on UniCredit Bank Austria's guaranteed
subordinated obligations, which reflect the deficiency guarantee
from the City of Vienna (unsolicited rating AA+/Negative/A-1+),
are not affected by this action.

Ratings Affirmed

Russia
Raiffeisenbank ZAO
Nondeferrable subordinated debt           BBB-

Sweden
Landshypotek AB
Nondeferrable subordinated debt           A-

Denmark
Danske Bank A/S
Nondeferrable subordinated debt           BB+



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


FRANCE SOIR: Paris Commercial Court Orders Liquidation
------------------------------------------------------
RIA Novosti, citing Le Monde, reports that the Paris Commercial
Court on Monday ordered the winding-up of France Soir newspaper,
owned by businessman Alexander Pugachyov, due to bankruptcy.

According to RIA Novosti, Le Monde said the newspaper's assets,
including its trademark rights and archives, will be sold at an
auction.

Le Figaro reported in June that Mr. Pugachyov spent EUR80 million
on the paper which he acquired in 2009 in an attempt to save it
from bankruptcy, and another EUR10 million on the launch of the
paper's Web site, RIA Novosti recounts.

Mr. Pugachyov acquired France Soir in a bid to put the insolvent
paper back on track, RIA Novosti relates.  He initially managed
to boost the paper's sales by 250% and the online edition's
audience by 350%, but failed to make the paper profitable, RIA
Novosti discloses.

By 2011, the paper was generating monthly losses of EUR1 million,
forcing the entrepreneur to close down the print version of
France Soir and keep only the online edition, RIA Novosti notes.


PETROPLUS HOLDINGS: Petit-Couronne Plant Bid Deadline Extended
--------------------------------------------------------------
Marc Parrad at Reuters reports that on Tuesday, a French court
extended to August 24 the deadline to bid for the troubled Petit-
Couronne refinery of insolvent oil firm Petroplus, after two low-
profile groups unveiled offers preserving jobs and described by
trade unions as "acceptable."

Legal representatives of the two bidding groups said the court
would take a decision on the fate of the refinery on September 4,
Reuters relates.  This will leave more time for other potential
buyers to bid for the plant, Reuters says.

According to Reuters, the court could then decide to pick or
reject the bids, extend again the bidding deadline or simply
liquidate the plant, which was placed under legal protection
after Swiss-based refiner Petroplus filed for insolvency last
year.

The two bidders are Alafandi Petroleum Group (APG), whose website
cites an address in Hong Kong and Ramzi Alafandi as its CEO, and
Net Oil, a group composed of associates, notably of Roger Tamraz,
a Middle Eastern businessman active in oil and gas, REuters
discloses.

Mr. Tamraz told Reuters Net Oil was prepared to invest
EUR486 million (US$588.88 million) over the next three years and
that crude would be supplied from the Middle East.

                         About Petroplus

Based in Zug, Switzerland, Petroplus Holdings AG is one of
Europe's largest independent oil refiners.

Petroplus was forced to file for insolvency in late January after
struggling for months with weak demand due to the economic
slowdown in Europe and overcapacity amid tighter credit
conditions, high crude prices and competition from Asia and the
Middle East, MarketWatch said in a March 28 report.

According to MarketWatch, Petroplus said in March a local court
granted "ordinary composition proceedings" for a period of six
months. As part of the court process, Petroplus intends to sell
its assets to repay its creditors.

Some of Petroplus' units in countries other than Switzerland have
filed for "different types of proceedings" and are currently
controlled by court-appointed administrators or liquidators,
which started the process to sell assets, including the company's
refineries.


TRW AUTOMOTIVE: Minister Seeks Talks on Ramonchamp Plant's Future
-----------------------------------------------------------------
Steve Rhinds at Bloomberg News reports that Industry Minister
Arnaud Montebourg said in parliament on Tuesday that the French
government wants to hold talks with TRW Automotive Holdings Corp.
on the future of its Ramonchamp plant in the Vosges region.

According to Bloomberg, Agence France-Presse said the plant,
which employs 313 people, was put into administration on Monday
by a commercial court in Epinal.

AFP said the TRW plant makes parts for Peugeot, Bloomberg relates

Livonia, Mich.-based TRW Automotive Holdings Corp. supplies
automotive systems, modules and components to global automotive
original equipment manufacturers (OEMs) and related aftermarkets.



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G E R M A N Y
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NURBURGRING AUTOMOTIVE: Sent to Administration, Owes EUR13 Mil.
---------------------------------------------------------------
The Local reports that the company that manages Germany's
troubled Nurburgring circuit has petitioned to enter
administration at a court in the town of Bad Neuenahr-Ahrweiler.

The interior minister of the state of Rhineland-Palatinate, the
majority shareholder in the company that manages the legendary
circuit, told news agency AFP that Nurburgring Automotive made
the move, according to The Local.

The report relates that a spokesman for the minister added that
administrators will be appointed by the court.  The Local relates
that Nurburgring Automotive has EUR13 million in debt and had
been counting on financial aid from the European Union after
extensive renovation work.

But the EU told them that no decision on a bail-out would be made
until at least July 30, The Local says.

The Nurburgring has been the main venue for the German Grand Prix
since World War II but has shared duties with Hockenheim since
2009.



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I C E L A N D
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LANDSBANKI ISLANDS: Iceland to Fight Interest Rate Penalties
------------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that Iceland will
fight to avoid paying penalty interest rates on foreign depositor
claims as a four-year-old dispute with the U.K. and the
Netherlands nears its day in court.

The island plans to contest a charge that it breached a European
Union directive by not honoring US$5.4 billion in depositor
guarantees on accounts held by British and Dutch savers from
failed Landsbanki Islands hf, Bloomberg says.  According to
Bloomberg, the two European Union nations ended up compensating
their citizens and are now demanding Iceland repay the full
amount, with interest.  The trial is due to start in two months,
Bloomberg notes.

"The range from best- to worst-case scenarios goes from paying no
interest at all to paying post-maturity interest," Bloomberg
quotes Larus Blondal, a Supreme Court attorney and a member of
Iceland's negotiating team in the so-called Icesave dispute,
named after the deposit accounts offered by Landsbanki as saying.
"Those two scenarios are separated by very significant amounts."

The European Free Trade Association's court in Luxembourg will on
Sept. 18 hear the case brought against Iceland by the EFTA's
Surveillance Authority, Bloomberg says.  Landsbanki, which had
sought to attract foreign depositors through high-yielding
internet accounts that saved it the trouble of opening
subsidiaries abroad, collapsed in October 2008 with the rest of
Iceland's debt-laden banking industry, Bloomberg recounts.

Iceland maintains that it's not obligated to guarantee foreign
deposits with a failed bank, Bloomberg notes.  Last year, the
caretakers of the Landsbanki estate began repaying priority
claims to British and Dutch authorities and said in May, they had
covered 43% of all such obligations, Bloomberg relates.

                    About Landsbanki Islands

Landsbanki Islands hf, also commonly known as Landsbankinn in
Iceland, is an Icelandic bank.  The bank offered online savings
accounts under the "Icesave" brand.  On October 7, 2008, the
Icelandic Financial Supervisory Authority took control of
Landsbanki and two other major banks.

Landsbanki filed for Chapter 15 protection on Dec. 9, 2008
(Bankr. S.D. N.Y. Case No.: 08-14921).  Gary S. Lee, Esq., at
Morrison & Foerster LLP, represents the Debtor.  When it filed
for protection from its creditors, it listed assets and debts of
more than US$1 billion each.



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I R E L A N D
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DEKANIA EUROPE III: S&P Affirms 'CCC-' Ratings on 2 Note Classes
----------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on all rated notes issued by Dekania Europe CDO III PLC.

"The rating actions follow our assessment of the transaction's
performance using data from the latest available trustee report
dated June 26, 2012 (including the note valuation report), our
cash flow analysis, and the application of our relevant criteria
for transactions of this type," S&P said.

"In our view, the deleveraging of the class A1 notes since our
previous review in August 2010 has increased the level of credit
enhancement available. Overall, this has meant that the class A1
notes are able to withstand greater levels of default stresses,
which has been reflected in higher break-even default rates
(BDRs) under our cash flow analysis. At the same time, we have
witnessed an improvement in the scenario default rates (SDRs) at
all rating levels since our previous review. In our opinion, the
improvements in BDRs and SDRs combined have meant that the class
A1 notes are now commensurate with a higher rating. We have
therefore raised our rating on the class A1 notes to 'BBB (sf)'
from 'BBB- (sf)'," S&P said.

"The results of our cash flow analysis signal potentially higher
rating levels for the class A2-A and A2-B notes. However, we have
affirmed our 'BB (sf)' ratings on these notes, because not all of
the assets in the underlying portfolio may exercise their option
to call and fully redeem their existing debt--thereby increasing
the risk of default from these obligors," S&P said.

"The affirmation of our rating on the class B notes is based on
our view that this class of notes will continue to defer interest
in the near term, to the extent that the class A
overcollateralization test remains in breach. According to the
latest trustee report available to us, currently all
overcollateralization tests are in noncompliance with their
trigger levels," S&P said.

"The largest obligor supplemental test at the 'CCC-' rating level
continues to affect the class C and D notes, according to our
analysis. At the same time, both of these classes are unable to
pass our cash flow stresses at higher rating levels. We have
therefore affirmed our 'CCC- (sf)' ratings on the class C and D
notes," S&P said.

Dekania Europe CDO III is a cash flow collateralized debt
obligation (CDO) that closed in June 2007. A portfolio of
subordinated debt securities (issued primarily by European
insurance, bank, and homebuilding companies) collateralizes the
transaction.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

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

     http://standardandpoorsdisclosure-17g7.com/1111738.pdf

RATINGS LIST

Class              Rating
            To               From

Dekania Europe CDO III PLC
EUR300 Million Floating-Rate Notes

Rating Raised

A1          BBB (sf)         BBB- (sf)

Ratings Affirmed

A2-A        BB (sf)
A2-B        BB (sf)
B           B- (sf)
C           CCC- (sf)
D           CCC- (sf)


SMURFIT KAPPA: Fitch Affirms 'BB' Long-Term IDR; Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Smurfit Kappa Group Plc's (SKG) Long-
term foreign currency Issuer Default Rating (IDR) at 'BB'.  The
Outlook is Stable.

The agency has also affirmed SKG's related entities as follows:

  -- Smurfit Kappa Acquisitions' senior secured facilities
     affirmed at 'BB+

  -- Smurfit Kappa Acquisitions' guaranteed senior secured notes
     affirmed at 'BB+'

  -- Smurfit Kappa Funding's senior subordinated notes due 2015
     affirmed at 'BB-'

  -- Smurfit Kappa Treasury Funding's senior secured notes due
     2025 affirmed at 'BB+'

The affirmations reflect SKG's steady performance in both 2011
and in the first few months of 2012 and the continuous
improvement in credit metrics and leverage ratios.  In 2011,
SKG's cash generation was solid, with free cash flow (FCF) in
excess of EUR340 million, allowing net debt to reduce to below
EUR2.8bn and funds from operations (FFO) adjusted net leverage to
improve to 3.4x from 4.4x at end-10.  The company now has the
financial flexibility to maintain the dividend payment (restored
in 2012) and to progressively increase capex to a normal level of
90%-100% of depreciation in 2012 and 2013, maintaining credit
metrics firmly in the 'BB' category.

The ratings also reflect the successful completion of the amend-
and-extend agreement on the senior secured facilities.  The
agreement allowed a significant improvement in the debt's
maturity profile, as SKG now has no material maturities before
2015, when the subordinated bonds mature.  In addition, the
agreement increased the financial flexibility of SKG and improved
liquidity, thanks to the extended maturity to 2016 of the
revolving credit facility (RCF).

Under its assumptions, Fitch continues to forecast a weak
corrugated packaging market in 2012, due to the poor
macroeconomic situation in Europe.  Old Corrugated Containers,
the main raw material, could decline in H212 on the back of weak
demand in Europe and Asia.  This could temporarily ease the
pressure on SKG's margins.  However, the price decline in raw
materials could also ultimately cause pricing pressure on
corrugated packaging.

SGK's liquidity is deemed strong, backed by approximately EUR500m
of cash (after the pre-payment of part of the senior credit
facilities) and by a fully undrawn EUR525m RCF maturing in 2016.

WHAT COULD TRIGGER A RATING ACTION?

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

  -- The continuation of the current path in debt reduction and
     the improvement in credit metrics could lead to a rating
     upgrade.  In particular, the improvement of FFO adjusted
     leverage to below 3.5x, maintaining FCF/revenue above 1% and
     FFO interest coverage above 3.0x could lead to a positive
     rating action.

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

  -- A material deterioration in the operating performance, with
     sustained negative FCF

  -- A re-leveraging of the group, due to either a deterioration
     in trading conditions or to M&A activity, with FFO adjusted
     leverage worsening to above 4.5x.


* IRELAND: Over 300 Hotels Need Debt Restructuring
--------------------------------------------------
Business World, citing the Crowe Horwath Annual Irish Hotel
Survey 2012, reports that over 300 Irish hotels -- some 40% of
the nation's total -- urgently need restructuring of their debts
with over 80 hotels already in receivership and more to follow
unless something is done.

The advisors to the Irish Hotel sector are calling for an
immediate restructuring of Irish hotel debt by banks operating in
the sector to protect industry standards and generate investment,
Business World discloses.

According to Business World, the survey reveals that, after a
four year decline, the hotel sector in Ireland is showing growth
in profitability across all regions, giving Irish hoteliers cause
to be cautiously optimistic that trading levels will improve over
the coming years.



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K A Z A K H S T A N
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CHIMPHARM JSC: S&P Assigns 'B-' Corp. Credit Rating; Outlook Pos.
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' long-term
corporate credit rating to Kazakh generic pharmaceuticals
manufacturer Chimpharm JSC. The outlook is positive.

"At the same time, we assigned 'B-' issue ratings to Chimpharm's
proposed KZT10 billion unsecured notes. The recovery rating on
this debt is '4', indicating our expectation of average (30%-50%)
recovery for creditors in an event of payment default," S&P said.

"The rating action follows our announcement on July 12, 2012 when
we assigned our 'kzBB' Kazakhstan national scale rating to
Chimpharm and the proposed notes," S&P said.

"The ratings reflect our assessment  of Chimpharm's business risk
profile as 'vulnerable', mainly due to its relatively small size,
and political risk in the Republic of Kazakhstan (BBB+/Stable/A-
2), its main market. Other business risks are Chimpharm's lack of
geographic diversity and reliance on public funds and
distribution capabilities in an evolving domestic health care
system," S&P said.

"Positive factors are Chimpharm's position in the Kazakh
pharmaceutical market as the leading domestic producer, by
volume, of mainly generic drugs and medicines. Our view of
Chimpharm's credit metrics is another support for the ratings.
Leverage was very low at the end of 2011, with the company's debt
totaling KZT1.2 billion (about US$8 million). Chimpharm's
operating margin (EBITDA) was relatively high at 33% in 2011. We
project margins will decline over the next few years, as selling
and marketing expenses will likely outpace the expected strong
improvement in the gross margin following the company's planned
expansion. However, the increase in selling and marketing
expenses is unlikely to be material and mainly reflects the need
to adapt to new business conditions under a recently signed
exclusive supply contract between Chimpharm and the domestic
market regulator," S&P said.

"To cope with the contract's specifications for production and
delivery of guaranteed volumes, Chimpharm has initiated a $65
million facility expansion and modernization program in
compliance with the U.S. regulator's Good Manufacturing Practice
standards. The resulting need for additional resources will push
up expenses from 2012. We believe this will offset the projected
significant rise in the gross margin on the back of likely
sizable price increases and a more profitable product mix after
Polpharma took control of Chimpharm in 2011. Consequently, we
expect EBITDA margins in our base-case scenario for 2012 and 2013
to temporarily fall to 27% and recover to about 30% thereafter,
though still comparing favorably with those of its peers," S&P
said.

"We assess Chimpharm's financial risk profile as 'aggressive'
under our criteria. This mainly reflects our view of the
company's less-than-adequate liquidity profile, in turn
reflecting uncertainties about the successful placement of the
proposed notes. The company's credit metrics are a rating
support, in view of relatively high operating margins and
satisfactory free cash flow generation. We expect leverage in our
base-case scenario to rise to more than 2.5x in 2012 and 2013,
due to sizable capital spending to construct new facilities and
fund the related working capital requirements," S&P said.

"Chimpharm is privately owned by two large shareholders: Poland-
based Polpharma (50% plus one vote) and Visor Growth Fund B.V.,
which is owned by Kazakhstani investors (the remainder). We
believe there are no significant corporate governance issues.
Polpharma exercises operating control as stipulated in the
shareholder agreement, with the support of former majority owner
Visor Growth Fund B.V., which saw the need for a strong
industrial partner for Chimpharm. We believe Chimpharm's
management has a generally measured risk appetite. We understand
Chimpharm is to start paying dividends to its shareholders after
the notes are repaid. We note that, according to the shareholder
agreement, no dividends are paid if cash flows are negative," S&P
said.

"The positive outlook reflects our view that Chimpharm's
liquidity will likely improve if it successfully places the
proposed notes, enabling it to carry out its expansion plans.
This should result in satisfactory cash flow generation if there
are no significant delays in the construction program," S&P said.



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


PINNACLE HOLDCO: Loan Upsizing No Impact on Moody's 'B2' CFR
------------------------------------------------------------
Moody's Investors Service says that Pinnacle Holdco S.A.R.L.'s
upsizing of its first lien term loan by $15 million and second
lien term loan by $5 million is credit negative but the B2
corporate family rating, B1 senior secured debt rating and Caa1
second lien debt rating are unaffected. The debt is being used to
finance Apax Partners and JMI Equity's acquisition of Paradigm
Ltd. The outlook remains stable.



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


ACCESS FINANCE: Fitch Rates US$350-Mil. Unsec. Unsub. Notes 'B'
---------------------------------------------------------------
Fitch Ratings has assigned Netherlands-based Access Finance BV's
US$350 million issue of guaranteed unsecured unsubordinated notes
a Long-term rating of 'B' and Recovery Rating 'RR4'.  The
Recovery Rating for the issue is in accordance with Fitch's soft
cap for Nigeria.

Rating Action Rationale

The notes' rating is aligned with the Long-term Issuer Default
Rating (IDR) of its 100%-parent, Access Bank Plc (Access,
'B'/Stable) based on Fitch's belief that Access will support debt
issued by Access Finance BV, if required.  The notes are
expressed to be unconditionally and irrevocably guaranteed.

RATING DRIVERS AND SENSITIVITIES - IDRS, NATIONAL RATINGS AND
SENIOR DEBT

Access Finance's senior notes' ratings would be sensitive and
directly-linked to any change in Access's Long-term IDR. An
upgrade or downgrade to Access's ratings would result in similar
action to Access Finance's senior notes' ratings.

Access's IDRs and National Ratings are derived from Fitch's
perceived level of support from the authorities if required.  The
bank's ratings are sensitive to a reduction in the level of
support Fitch views would be forthcoming from the Nigerian
authorities - either through indications of a reduced willingness
to support or the ability to do so. The latter could be signalled
by a downgrade of Nigeria's 'BB-' sovereign rating.

Access is rated as follows:

  -- Long-term foreign currency IDR: 'B'. Stable Outlook
  -- Short-term foreign currency IDR: 'B'
  -- National Long-term rating: 'A-(nga)'
  -- National Short-term rating: 'F2(nga)'
  -- Viability Rating: 'b-'
  -- Support Rating: '4'
  -- Support Rating Floor: 'B'


DALDARIAN EUROPEAN I: S&P Cuts Rating on Class E Notes to 'CCC+'
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Dalradian European CLO I B.V.'s class A1, A2, B, C, D, and VFN
notes. "At the same time, we have lowered our rating on the class
E notes," S&P said.

"The rating actions follow our assessment of the transaction's
performance since our previous review in October 2010. We have
used data from the trustee report dated June 2012 and our cash
flow analysis, considering recent transaction developments. In
our review, we have applied our 2012 counterparty criteria and
our 2009 collateralized debt obligation (CDO) cash flow
criteria," S&P said.

"Our analysis shows that the level of assets that we consider to
be rated in the 'CCC' category ('CCC+', 'CCC', or 'CCC-') has
slightly increased to 6.28% from 6.18% of the portfolio balance
(excluding cash) since our last review on Oct. 28, 2010. The
percentage of portfolio assets that we consider as defaulted
(i.e., debt obligations of obligors rated 'CC', 'SD' [selective
default], or 'D') has not really changed (to 4.17% from 4.23%).
Additionally, the weighted-average life (WAL) of assets in the
portfolio has decreased to 4.18 years from 5.10 years. This
decrease of the WAL has driven the decrease of the scenario
default rates (SDRs) that CDO Evaluator (version 6.0) has
estimated for the current portfolio. The SDR has decreased on
average, at each rating level, by 7%," S&P said.

"Moreover, the weighted-average spread has increased to 3.52%
from 3.04%, which has benefited the structure in the cash flow
analysis. Indeed, we have subjected the transaction's capital
structure to a cash flow analysis, to determine the break-even
default rate for each rated class of notes at each rating level.
In our analysis, we used the portfolio balance that we considered
to be performing (EUR318 million), the reported weighted-average
spread (3.52%), and the weighted-average recovery rates that we
considered to be appropriate. We incorporated various cash flow
stress scenarios using our standard default patterns, levels, and
timings for each rating category assumed for each class of notes,
in conjunction with different interest rate stress scenarios,"
S&P said.

"Based on this analysis, the class A1 and VFN notes can achieve a
'AAA (sf)' rating, the class A2 notes can achieve a 'AA+ (sf)'
rating, and the class B notes can achieve a 'AA- (sf)' rating in
our cash flow scenario, when giving credit to the hedge agreement
with Citibank N.A. (A/Negative/A-1)," S&P said.

"However, in our opinion, the transaction documents do not comply
with our 2012 counterparty criteria to support AAA (sf) rating.
Our current (i.e., 2012) counterparty criteria states that when
the replacement language in the hedge agreement reflects any of
our previous counterparty criteria, the maximum achievable rating
on a tranche is equal to the long-term issuer credit rating on
the counterparty plus one notch, unless additional stresses are
applied in our cash flow analysis," S&P said.

"Therefore, in our cash flow analysis, we have tested additional
scenarios without giving benefit to the hedge agreement," S&P
said.

"Under that scenario, the class A1 and VFN notes can still
achieve a 'AAA (sf)' rating, the class A2 notes can achieve a
'AA+ (sf)' rating, and the class B notes can achieve a 'AA- (sf)'
rating in our cash flow scenario. We have therefore raised our
ratings on these classes to levels that reflect the current
levels of credit enhancement," S&P said.

"The transaction's overcollateralization tests have met the
minimum levels required, except for the class E notes, which are
currently failing the overcollateralization test," S&P said.

"Moreover, the class E notes currently pass our cash flow
analysis at the 'BB- (sf)' rating level. However, our rating on
this class of notes has been constrained to 'CCC+ (sf)' by the
application of our largest obligor default test--a supplemental
stress test that we introduced in our 2009 criteria update for
corporate CDOs. We have therefore lowered our rating on the class
E notes to 'CCC+ (sf)'," S&P said.

"Dalradian European CLO I is a cash flow CDO transaction, backed
primarily by leveraged loans to speculative-grade corporate
firms. It closed on March 31, 2006, and is managed by Elgin
Capital LLP," S&P said.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

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

     http://standardandpoorsdisclosure-17g7.com/1111738.pdf

RATINGS LIST

Class                    Rating
                To                       From

Dalradian European CLO I B.V.
EUR350 Million Floating-Rate Notes

Ratings Raised

A1              AAA (sf)                 AA+ (sf)
VFN             AAA (sf)                 AA+ (sf)
A2              AA+ (sf)                 AA (sf)
B               AA- (sf)                 A+ (sf)
C               A- (sf)                  BBB+ (sf)
D               BB+ (sf)                 BB- (sf)

Rating Lowered

E               CCC+   (sf)              B- (sf)


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

"The rating actions follow our assessment of the transaction's
performance since our previous review in March 2011. Our analysis
is based on the trustee report dated June 2012. We have applied
our 2012 counterparty criteria and our 2009 collateralized debt
obligation (CDO) cash flow criteria," S&P said.

"The transaction is in its reinvestment period, which ends on
Jan. 16, 2013. Since our last review in March 2011, the portfolio
manager has continued to partially reinvest available proceeds,
and to partially repay the class A notes. The class A notes have
repaid by about EUR3.9 million to EUR293,368,302 from
EUR297,247,000 and the remaining outstanding notional amount
stands at about 95% of its initial amount. Moreover, the
performing par balance has increased by about EUR10 million to
EUR419 million from EUR409 million, mainly driven by the
principal cash currently available in the transaction. Both of
these factors have contributed to an improvement in the
transaction's overcollateralization ratio test results and to an
increase in the available credit enhancement across the capital
structure," S&P said.

"We have also noted an increase in assets rated in the 'CCC'
category ('CCC+', 'CCC', and 'CCC-') to 9.94% from 6.82% of the
portfolio balance excluding cash. This increase in our view was
partially mitigated by an increase in assets rated in the 'BB'
category ('BB+', 'BB', and 'BB-') to 13.71% from 11.63%. The
weighted-average life of the transaction remains at around the
same level (to 4.84 years from 4.89 years) while the weighted-
average spread has slightly increased to 2.87% from 2.65%," S&P
said.

"We have subjected the transaction's capital structure to a cash
flow analysis, to determine the break-even default rate for each
rated class of notes at each rating level. In our analysis, we
used the portfolio balance that we considered to be performing
i.e., excluding assets rated below 'CCC-' (EUR419 million), the
reported weighted-average spread (2.87%), and the weighted-
average recovery rates that we considered to be appropriate. We
incorporated various cash flow stress scenarios using our
standard default patterns, levels, and timings for each rating
category assumed for each class of notes, in conjunction with
different interest rate stress scenarios," S&P said.

"We note that non-euro assets represent approximately 11% of the
performing asset balance (excluding cash). The resulting foreign
currency risk is hedged via individual asset swaps with Morgan
Stanley & Co. International PLC (A/Negative/A-1) as swap
counterparty. In our opinion, the transaction does not currently
comply with our 2012 counterparty criteria to support the highest
ratings in the capital structure. Our 2012 counterparty criteria
provides that in cases where the replacement language in the swap
agreement reflects any of our previous counterparty criteria, the
maximum achievable rating on a tranche is equal to the
counterparty's long-term issuer credit rating plus one notch,
unless additional stresses are applied in our cash flow analysis
to capture that risk. Therefore, in our cash flow analysis, we
have tested additional scenarios by applying foreign exchange
stresses to the notional amount of non-euro assets, thus assuming
an unhedged exposure," S&P said.

"In applying these additional stresses, our analysis shows that
the credit enhancement available to the class A and B notes is
commensurate with a 'AA+ (sf)' rating and 'A+ (sf)' rating," S&P
said.

"In light of these developments, we have raised to 'AA+ (sf)' our
rating on the class A notes and to 'A+ (sf)' our rating on the
class B notes," S&P said.

"The class C notes currently pass our cash flow analysis at the
'A (sf)' rating level. However, our rating on this class of notes
has been constrained to 'BBB+ (sf)' by the application of our
largest obligor default test--a supplemental stress test that we
introduced in our 2009 criteria update for corporate CDOs. We
have therefore raised our rating on the class C notes to 'BBB+
(sf)'," S&P said.

"We note that interest payments to the class D notes have resumed
and that deferred interest has been fully repaid since our last
review. The outstanding amount of the Class D notes was
EUR25,671,526 and is now equal to the initial outstanding amount
i.e., EUR23,000,000. Indeed, there are currently no deferred
interest amounts outstanding for this class of notes," S&P said.

"As a result of these developments, we have raised our rating on
the class D notes to 'BB (sf)'," S&P said.

"The class E notes have continued to defer their interest
payments. Since our last review, the outstanding amount of the
class E notes has increased by around EUR2 million. In our view,
the credit enhancement available to this class of notes is
commensurate with its current rating level, and we have therefore
affirmed our 'CCC- (sf)' rating on this class of notes." S&P
said.

"Neptuno CLO II is a cash flow CDO transaction, backed by
leveraged loans to primarily speculative-grade corporate firms.
It closed in December 2007 and is managed by Caja de Ahorros y
Monte de Piedad de Madrid," S&P said.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

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

     http://standardandpoorsdisclosure-17g7.com/1111738.pdf

RATINGS LIST

Class                    Rating
                To                   From

Neptuno CLO II B.V.
EUR450 Million Senior Secured Floating-Rate Notes

Ratings Raised

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

Rating Affirmed

E               CCC- (sf)           CCC- (sf)



===========
P O L A N D
===========


POLIMEX-MOSTOSTAL SA: Enters Into Standstill Deal with Creditors
----------------------------------------------------------------
Maciej Martewicz at Bloomberg News reports that Polimex-Mostostal
SA Chief Executive Officer Konrad Jaskola said on Wednesday in an
interview on TVN CNBC in Warsaw said the company has reached a
four-month standstill agreement with bank creditors and owners of
PLN367.5 million (US$105.4 million) of the company's bonds,
including PLN100 million of securities due on July 25.

Polimex is a Polish construction company.



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


ALROSA OJSC: Moody's Changes Outlook on 'Ba3' CFR to Positive
-------------------------------------------------------------
Moody's Investors Service has changed the outlook on Alrosa OJSC
ratings to positive from stable. The company's Ba3 corporate
family rating (CFR) remains unchanged. At the same time, Moody's
raised Alrosa's baseline credit assessment (BCA) to b2 from b3,
following improvements in sales and profitability on the back of
rising diamond prices, and affirmed the Ba3 (LGD 4, 50%) ratings
on the senior unsecured guaranteed notes of Alrosa Finance S.A.

Ratings Rationale

The outlook change to positive reflects Moody's expectations that
(1) Alrosa will be able to partially dispose of assets related to
its Timir iron ore project by year-end 2012; and (2) the strong
pricing environment for diamonds will continue over the next 12-
18 months, despite implicit market volatility. The positive
outlook is further supported by the company's substantial global
market share and low cost reserve base.

The BCA rise is driven by improvements in the diamond market in
2011 and the first quarter of 2012. The average price of diamonds
sold by the company rose to US$130/carat in 2011 from US$84/carat
in 2010 on broadly flat volumes compared to the previous year.
This rise positively affected Alrosa's sales and profitability in
2011, despite a weak fourth quarter. The continued positive
pricing environment in Q1 2012 sets up expectations for a
sustained robust performance in the diamond market over the
coming months. Moody's expects that the current relatively
favorable diamond market environment will (1) persist throughout
2012, due to strong jewellery sector demand driven by demand from
the US and Southeast Asia; and (2) underpin strong cash flow
generation in 2012.

Uncertainty over the company's disposal/development of non-core
assets abated to some extent. The company is in the final stages
of negotiation regarding its disposal of a 51% stake in the Timir
iron ore project to EVRAZ (Ba3 stable), which is likely to be
signed and closed by year-end 2012 and should generate about
US$170 million in revenue. Moody's expects that estimated capital
expenditure (capex) for Timir project will be US$30 million in
2012 and US$2 billion in total to be spread over the next dozen
years.

Negotiations over the disposal of part of Alrosa's 100% interest
in ZAO Geotransgas and Urengoyskaya Gas Company (the "Gas
Assets") continue and uncertainty over the terms and timing of
this transaction will continue to exercise pressure on the
company's liquidity and debt levels. In Q1 2012, Alrosa re-
acquired 90% of the Gas Assets held by VTB-affiliated companies
for US$1,090 million and 10% from minority owners for US$100
million. In the near term, Moody's expects that the company will
maintain its current debt levels. Moreover, the rating agency
will not incorporate in its assessment of the BCA the disposal of
the Gas Assets and the concurrent reduction in debt.

The improvement of the company's credit profile in the short-term
will continue to remain the function of the terms and timing of
the gas assets disposal. In the long-term, Moody's expects that
capex associated with the development of the Gas Assets will be
US$130 million in 2012 and about US$400 million thereafter spread
over four years (2013-16). Moreover, Moody's does not expect this
capex to exert substantial negative pressure on the company's
cash flows, even if it fails to find a partner for the Gas
Assets. That said, possession of the Gas Assets provides no
synergies with the company's current business profile and will
expose it to unfamiliar risks (including geological risks and the
risk of not getting the access to the pipeline system of OJSC
Gazprom (Baa1 stable) upon finishing its five-kilometre pipeline
connecting the gas field to the Gazprom pipeline).

WHAT WOULD CHANGE THE RATING - UP

The maintenance of leverage (debt to EBITDA) below 3x and
sustained free cash flow (FCF) to debt above 10% would put upward
pressure on Alrosa's ratings. However, while the BCA takes into
account the sensitivity of the company's financial performance to
diamond prices, it also depends on how the company structures and
develops its non-core assets going forward.

WHAT WOULD CHANGE THE RATING - DOWN

Given the current robust diamond market and the support of the
government, Alrosa's Ba3 rating is solidly positioned. However, a
significant deterioration in the diamond market, greatly
increased capex, a material increase in Alrosa's leverage or a
significant increase in shareholder distributions could adversely
affect the BCA. Furthermore, Moody's may revise the ratings
assigned to the bonds should Alrosa incur secured debt or make
significant use of trade finance.

As at March 31, 2012, Alrosa had about US$547 million of cash and
about US$4,328 million of debt with the ratio of Moody's adjusted
total debt/EBITDA standing at 2.0x, which is in line with the
management team's prior statements about maintaining this ratio
at not greater than 2x. That said, the increased debt levels
still provide comfortable headroom for the company within its
current b2 BCA.

Alrosa's liquidity position remains constrained as the company
faces the need to refinance about US$1.7 billion of debt maturing
over the next 12 months, including European Commercial Papers
maturing in Q4 2012 (US$725 million) and Q1 2013 (US$315
million). Moody's concerns about the company's liquidity position
are tempered by evidence of the state-owned VTB bank's ongoing
support. Moody's view is that the government will continue to
indirectly support the operations of the company both through
direct purchases of diamonds and through support provided by
state-owned financial institutions. Given Alrosa's liquidity
profile, the Ba3 rating is heavily reliant upon the government
continuing to provide support through these avenues.

Principal Methodologies

The principal methodology used in rating Alrosa OJSC was the
Global Mining Industry Methodology published in May 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 (and/or) the Government-Related Issuers
methodology published in July 2010.

Alrosa mines, markets and distributes diamonds. It produced 34.6
million carats in 2011 (2010: 34.3 million carats), giving it a
world-leading 26% market share of diamond production. Alrosa
operates five mining complexes in the Sakha (Yakutia) Republic in
Eastern Siberia, one mine in Arkhangelsk, and has a 32.8%
interest in Catoca Mining Company Ltd in Angola. In 2011, Alrosa
reported revenues of RUB138 billion (2010: RUB113 billion) and
total assets of RUB241 billion (2010: RUB222 billion). The
company's principal shareholders are the governments of the
Russian Federation (50.9% shareholding) and the Sakha (Yakutia)
Republic (32% share).


HMS HYDRAULIC: S&P Cuts Corp. Credit Rating to 'B+'; Outlook Neg
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Russian pump and oil and gas equipment
manufacturer HMS Hydraulic Machines & Systems Group PLC (HMS) to
'B+' from 'BB-'. The outlook is negative. "We have also lowered
the long-term Russia national scale rating to 'ruA+' from 'ruAA-
'," S&P said.

"At the same time, we lowered the issue rating on the Russian
ruble(RUB) 3 billion unsecured notes issued by CJSC
Hydromashservice, a subsidiary of HMS, to 'B' from 'B+'. We also
lowered the Russia national scale rating on these notes to 'ruA'
from 'ruA+'. The recovery rating on these notes is '5',
indicating our expectation of modest (10%-30%) recovery in the
event of a payment default," S&P said.

"The downgrade follows HMS' acquisition of majority stakes in
Russian compressor producer Kazankompressormash (KKM) for RUB5.5
billion, and Germany-based compressor maker Apollo Goessnitz for
EUR25 million. Both acquisitions will be financed by debt. As a
result, we expect the HMS' credit metrics to deteriorate
significantly in 2012, to a level no longer commensurate with a
'BB-' rating, including an adjusted debt-to-EBITDA ratio above
2x," S&P said.

"The downgrade also reflects the significant tightening of the
group's liquidity position following the acquisitions, which are
partly funded by short-term debt and drawing on an existing
revolving credit facility (RCF). In order for HMS to regain an
adequate liquidity cushion, the company will be dependant on the
successful refinancing of some of its bilateral bank debt
facilities in coming months and the effective generation of
positive discretionary cash flow, which is currently our base-
case assumption. Nevertheless, we revised our liquidity score to
'less than adequate' from 'adequate' as we believe HMS' liquidity
position is no longer strong enough to weather an unforeseen
stress scenario," S&P said.

"We also revised our assessment of HMS' financial policy to
aggressive, based on the larger-than-expected debt-funded
acquisition, on top of the unexpected RUB1.5 billion dividend
distribution the group made in the first half of 2012," S&P said.

"Based on all of these, we have changed our assessment of HMS'
financial risk profile to 'aggressive,' from 'significant,'" S&P
said.

"At this early stage, we view the acquisitions as neutral for the
business risk profile. KKM seems to represent a good strategic
fit as it will complement HMS' product offering, especially for
gas applications, and potentially yield synergies over time.
However, the inclusion of KKM will not provide HMS with any
additional geographical diversification, or significantly affect
the group's margins," S&P said.

"The negative outlook reflects the risk that HMS might not be
able to restore its liquidity position to 'adequate' in the
coming months. This could occur if HMS was not able to renew its
banking lines maturing in the coming 18 months in a timely
fashion, even though our base-case scenario assumes successful
refinancing. In addition, the nature of HMS' business makes the
group vulnerable to large or unexpected working capital swings
owing to potential payment delays on large projects," S&P said.

"We would view the maintaining of a ratio of adjusted debt to
EBITDA comfortably below 3.0x as commensurate with the current
'B+' rating. We expect HMS to achieve this through positive FOCF
generation in the coming years. At the current rating level, we
think HMS has some room for growth via small debt financed
acquisitions, assuming it maintains an adequate liquidity
cushion," S&P said.

"We would likely revise the outlook to stable if HMS successfully
addressed the refinancing and extension of its 2012-2013
maturities by the end of 2012 while maintaining operating
performance and working capital levels in line with our current
expectations," S&P said.


PROBUSINESSBANK: Fitch Affirms 'B-' LT IDR; Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Probusinessbank's (PBB) and
Uraltransbank's (UTB) Long-term Issuer Default Ratings (IDR) at
'B-'.  The Outlook on PBB is Stable, while the agency has revised
UTB's Outlook to Negative from Stable.

Rating Action Rationale: PBB

The affirmation of PBB's ratings reflects the bank's weak capital
position, further burdened by high volume of non-core assets on
the balance sheet; and moderate asset quality, which shows some
signs of deterioration due to seasoning.  The ratings also take
into account PBB's solid pre-impairment profitability, and
currently comfortable liquidity position also supported by
relatively liquid loan book.

Rating Drivers and Sensitivities: PBB

PBB's consolidated (including six smaller Russian banks and
development company) Basel I total capital ratio (CAR) stood at a
modest 10.3% at end-Q112, while at a standalone level PBB's
regulatory CAR was even lower at 10.2% at end-5M12, offering only
a marginal ability to absorb losses equal to 0.4% of loan book
before the regulatory capital level would fall to its minimum
required level.  Capitalization is further undermined by
significant (82% of equity) investments in development property
with a long-term investment horizon, and certain bank placements
(21%), which, in the agency's view, may be fiduciary in nature.

As a source of additional capital and a mitigant against
potential credit losses, PBB's pre-impairment profitability is
solid, equal to 7% of average gross loans in 2011.  However, the
agency is concerned that this only exceeded the 6.6% share (Q112,
annualized) of non-performing loans (NPLs, overdue more than 90
days) generated by the loan book in the same period by a small
margin.  Fitch notes that the quality of the bank's predominantly
unsecured retail lending may also be susceptible to the operating
environment.

Overall, NPLs accounted for 8.1% of loans at end-Q112, while
restructures made up a further 2.7%.  NPLs were 1.1x times
covered by impairment reserves.

Liquidity was comfortable at end-Q112 with liquid assets (net of
RUB2.9bn of potentially restricted bank placements, as assessed
by Fitch) accounting for 29% of customer accounts.

PBB's ratings may be downgraded if capitalization further
deteriorates and internally generated capital is not sufficient
to absorb potential losses.  Upward pressure on the ratings could
result from substantial improvement of capitalization and its
quality, including through disposal of non-core asset.

Rating Action Rationale: UTB

The revision of the Outlook on UTB's ratings to Negative reflects
its two consecutive years of impairment-driven losses and
uncertainty about the bank's ability to reverse this trend.
Positively, the ratings reflect the currently comfortable
liquidity cushion.

Rating Drivers and Sensitivities: UTB

At end-2011, UTB reported NPLs and restructured loans of 17.3%
and 7.7%, respectively.  Additionally, 12.4% of end-2011 loans
were outsourced to collection companies.  Fitch believes these
are also impaired.  At the same time, loan impairment reserves
accounted for only 21% of gross loans, suggesting additional
provisions may be required.

Regulatory CAR stood at 15.4% at end-5M12, allowing creating
further 10% of impairment reserves before regulatory capital
reaches minimal 10%.  A further 4.8% of reserves may be created
through pre-impairment profitability.  In total, this seems
sufficient to cope with the currently identified problems, but
given the so far poor asset quality track record additional
impairment cannot be excluded.

UTB's liquidity is currently comfortable with the available
cushion (cash and cash equivalents, CBR eligible securities and
net interbank placements) accounting for 44% of customer accounts
(UTB's main source of funding representing 94% of liabilities) at
end-5M12.

UTB's ratings could be downgraded if asset quality further
deteriorates putting pressure on the bank's solvency.  However,
if the bank is able to stabilize asset quality and improve
performance, the Outlook may be revised back to Stable.

The rating actions are as follows:

PBB

  -- Long-term foreign currency IDR: affirmed at 'B-', Outlook
     Stable
  -- Long-term local currency IDR: affirmed at 'B-', Outlook
     Stable
  -- Short-term IDR: affirmed at 'B'
  -- Viability Rating: affirmed at 'b-'
  -- Support Rating: affirmed at '5'
  -- Support Rating Floor: affirmed at 'No Floor'
  -- National Long-term rating: affirmed at 'BB-(rus)', Outlook
     Stable
  -- Senior Unsecured Long Term Rating: affirmed at 'B-'
  -- Senior Unsecured Short Term Rating: affirmed at 'B'
  -- Senior Unsecured Long Term Rating: affirmed at 'B-(EXP)'

UTB

  -- Long-term foreign currency IDR: affirmed at 'B-', Outlook
     revised from Stable to Negative
  -- Short-Term IDR: affirmed at 'B'
  -- Viability Rating: affirmed at 'b-'
  -- Support Rating: affirmed at '5'
  -- Support Rating Floor: affirmed at 'No Floor'
  -- National Long-term rating: affirmed at 'BB-(rus)', Outlook
     Negative


SSMO LENSPETSSMU: S&P Affirms 'B/B' Corporate Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Russian
residential real estate developer CJSC SSMO LenSpetsSMU (LSS) to
positive from stable. "At the same time we affirmed our 'B/B'
long- and short-term corporate credit ratings on LSS and our 'B'
issue rating on its Russian ruble (RUB)2 billion 14.5% senior
unsecured notes due 2013, RUB2 billion senior unsecured 16% notes
due 2012, and US$150 million series 2010-01 limited-recourse
secured notes due 2015. The recovery rating on these instruments
is unchanged at '4', indicating our expectation of average (30%-
50%) recovery prospects in the event of a payment default. The
'ruA' Russia national scale rating remains unchanged," S&P said.

"The outlook revision follows improvement in LSS' operating
performance, especially sales, which rose 23% year-on-year as of
June 30, 2012. LSS' key Saint Petersburg residential market is
seeing demand improve, supplies remain low, and prices rise. We
believe these factors have allowed LSS to maximize its strong
market position and good pricing strategy in the middle-class
housing segment to prompt this strong performance. We anticipate
that relatively low inventory in 2011 and 2012 and rising revenue
should result in LSS improving its free operating cash flow
(FOCF) generation in the short term," S&P said.

"LSS uses the conservative completed contract revenue recognition
method, which counts revenue only when transactions are
completed, but we still remain cautious about 2013 as working
capital could rise because of the high number of projects coming
under construction, and lower revenue could temporarily offset
the performance achieved during the previous year," S&P said.

"The revision is also supported by our belief that the company is
strongly committed to further strengthening its capital
structure. This is demonstrated by the steps LSS is currently
taking to reduce the share of short-term debt in its total debt
structure, which we currently view as high, and to reduce its
exposure to foreign currency. This strategy, if implemented,
would likely be positive for the ratings," S&P said.

"We continue to assess LSS' business risk profile as 'weak' and
its financial risk profile as 'aggressive,' as our criteria
define the terms. LSS has been fully owned by Etalon Group
Limited (Etalon; not rated), a Guernsey-based holding company,
since 2008, and we consider LSS to be a core entity for Etalon as
it generates 80% of its revenues and represented 100% of its
consolidated debt as of Dec. 31, 2011. We view Etalon's credit
quality as equal to LSS', and our rating on LSS therefore
reflects this," S&P said.

"The positive outlook reflects our view that LSS should be able
to improve its cash flow generation over the next six months as a
result of increasing sales and low 2012 inventory. We also
believe the company's good standing in the market compared with
other players and the steps it is currently taking could result
in an enhancement of its capital structure in the short term. A
positive rating action will hinge on the company achieving at
least one of these two conditions," S&P said.

"For the current rating we assume that LSS' management will
continue its prudent financial policy of tailoring cash outflows
into ongoing construction to the cash inflows from committed and
partly pre-paid sales. We also assume that LSS will maintain a
good liquidity cushion to cover working capital requirements that
could rise in 2013, and a ratio of debt/debt and equity below
50%," S&P said.

"We might consider revising the outlook to stable if LSS did not
successfully increase its cash flow or strengthen its capital
structure, as we currently expect. We would also see negatively
LSS abandoning its cautious strategy on phasing in new
developments. Adverse developments in Russia's macroeconomic
environment would also have a negative effect," S&P said.



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


BANCO DE SABADELL: S&P Keeps 'BB+/B' Issuer Credit Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services published its 'BBB+' issue
rating on the EUR1.5 billion government guaranteed bond ('Bonos
Garantizados por la Administracion General del Estado I/2011')
due 2014 issued in December 2011 by Spain-based Banco de Sabadell
S.A. (Sabadell; BB+/Negative/B).

"Due to an error, we did not enter into our rating database, the
issue rating we originally assigned to the GGB issued by Sabadell
in December 2011. Consequently, the rating was never published or
updated," S&P said.

"Based on our review of the state guarantee, the bank's GGB
issuance qualifies for our rating substitution treatment. The
rating on the GGB solely reflects the unconditional, irrevocable,
and timely guarantee of payment of scheduled interest and
principal provided by the Spanish government. Accordingly, the
rating transition provided below on the GGB reflects the
deterioration in our ratings on the Kingdom of Spain
(BBB+/Negative/A-2)," S&P said.

"The publishing of the issue rating on the GGB does not affect
our counterparty credit or other issue ratings on Sabadell," S&P
said.

Dec. 23, 2011
Original issue rating assigned
To
AA-/Watch Neg

Jan. 13, 2012
Downgraded and removed from CreditWatch negative
To                    From
A                     AA-/Watch Neg

April 26, 2012
Downgraded
To                    From
BBB+                  A


PROMOTORA DE INFORMACIONES: Posts EUR61MM Net Loss in First Half
----------------------------------------------------------------
Clare Kane at Reuters reports that indebted loss-making Promotora
de Informaciones SA (Prisa) reported a 5% fall in first half
revenue on Monday, hit by tumbling advertising spending in its
crisis-stricken home market.

According to Reuters, operating revenue in the first half of 2012
fell to EUR1.3 billion (US$1.6 billion), with income from
advertising 11% lower in the first half of 2012 compared with the
same period last year at EUR282 million.

Prisa's net losses reached EUR61 million in the first half,
Reuters discloses.

"In the current economic environment, the effort to control costs
and improve operating efficiency is of vital importance to
maintain the necessary liquidity and the profitability of the
Group," Reuters quotes Prisa as saying in a statement to Spain's
stock market regulator, pledging to make cost-cutting a priority.

The company is also currently trying to shed assets and cut its
debt pile, which stood at EUR3.5 billion at the end of 2011,
Reuters says.

The media group announced a recapitalization plan in June, under
which it sold 434 million euros worth of bonds to various banks
and Spain's biggest telecoms company Telefonica, Reuters
recounts.

Promotora de Informaciones S.A. -- http://www.prisa.com/-- is a
Spain-based holding company, engaged in various media activities.
The Company has six business areas: publishing, education and
training (Grupo Santillana publishes textbooks and books of
general interest); press (El Pais Internacional is engaged in the
distribution of news material and services to other newspapers
and publications worldwide); radio (Union Radio is a group
broadcasting worldwide); audiovisual (PRISA offers services and
products, including Pay TV, thorough the satellite platform
DIGITAL+, and free-to-view through the channel Cuatro); online
(Prisacom is committed to the development of multimedia content
with broadcasting for Internet-based TV) as well as commercial &
marketing (Sogecable Media SA manages all the advertising on the
Company and its group's media).  The Company is present in 22
countries, such as Portugal, Brazil or the United States.


* S&P Affirms 'BB' Debt Ratings on 4 Valencian Universities
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' issue
ratings on the senior secured debt issued by Valencia's
universities -- Universidad de Valencia, Universidad Politecnica
de Valencia, Universidad de Alicante, and Universidad de
Castellon.

"The recovery rating of '4' on the universities' senior secured
debt remained unchanged, indicating our expectation of average
(30%-50%) recovery in the event of default," S&P said.

Standard & Poor's subsequently agreed to withdraw the ratings.

"At the time of the withdrawal, we saw Valencia's universities as
government-related entities (GREs). We considered that they had
an 'integral' link to Valencia's government (Valencia;
BB/Negative/B), and played a 'critical' role as part of
Valencia's public sector," S&P said.

"As such, we viewed the likelihood of support from the government
of Valencia to these universities as 'almost certain,' as defined
in our criteria for rating GREs. As a result, we equalized our
issue ratings on the senior secured debt of these universities
with the rating on Valencia," S&P said.

"Total debt service on the universities' bonds for 2012 is
EUR17.5 million in interest payments. Outstanding principal on
the bonds is EUR281.27 million in total, to be paid in 2013
(EUR93.2 million), 2017 (EUR88.9 million), and 2022 (EUR99.2
million)," S&P said.

RATINGS LIST
Affirmed; Withdrawn
                             To        To         From
Universidad de Valencia
EUR45.076 mil 6.6%
bonds due 12/15/2022
(ISIN ES0282102005)          NR        BB         BB
  Recovery Rating            NR        4          4

EUR48.081 mil 5.55%
bonds due 12/15/2013
(ISIN ES0282102013)          NR        BB         BB
  Recovery Rating            NR        4          4

Universidad Politecnica de Valencia
EUR45.076 mil 5.55%
bonds due 12/15/2013
(ISIN ES0282103011)          NR        BB         BB
  Recovery Rating            NR        4          4

EUR54.091 mil 6.6%
bonds due 12/15/2022
(ISIN ES0282103003)          NR        BB         BB
  Recovery Rating            NR        4          4

Universidad de Castellon
EUR25.844 mil 6.5%
bonds due 12/15/2017
(ISIN ES0282104001)          NR        BB         BB
  Recovery Rating            NR        4          4

Universidad de Alicante
EUR63.106 mil 6.5%
bonds due 12/15/2017
(ISIN ES0282101007)          NR        BB         BB
  Recovery Rating            NR        4          4



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


BACCHUS 2007-1: S&P Lowers Rating on Class D Notes to 'CCC+'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
BACCHUS 2007-1 PLC's class D notes. "At the same time, we
affirmed our ratings on the class A, B, C, E, and revolving
credit facility (RCF) notes," S&P said.

"BACCHUS 2007-1 is a multicurrency cash flow collateralized loan
obligation (CLO) transaction backed by a portfolio of
predominantly senior secured leveraged loans. The rating actions
follow our assessment of the transaction's performance, and the
application of our relevant criteria for transactions of this
type," S&P said.

"For our review of the transaction's performance, we used data
from the trustee report (dated May 31, 2012), in addition to our
credit and cash flow analysis. We have considered recent
transaction developments, and have applied our 2012 counterparty
criteria and our cash flow collateralized debt obligation (CDO)
criteria," S&P said.

"From our analysis, we have observed a decrease in the performing
assets in the collateral portfolio since our previous review of
the transaction on Dec. 23, 2011. Additionally, we have observed
an increase in both notional and percentage terms of assets in
the collateral pool that we consider to be defaulted assets
(rated 'CC', 'C', 'SD' [selected default], or 'D') as well as
assets in the 'CCC' category ('CCC+', 'CCC', or 'CCC-').
Currently, the class D and E notes are deferring interest and
consequently, the total notional balances have increased since
our last review. This has resulted in a decrease in the available
credit enhancement for all classes of notes," S&P said.

"The class A/B par value test continues to perform above the
required trigger and the class C, D, and E par value tests
continue to perform below the required triggers. The issuer has
made principal payments on the class A and RCF notes to cure par
value tests since our previous review," S&P said.

"In the same period, we have also observed an increased weighted-
average spread earned on the collateral portfolio," S&P said.

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

"In our opinion, the documents for the derivative counterparties
do not fully comply with our 2012 counterparty criteria. We have
analyzed the derivative counterparties' exposure to the
transaction and concluded that the derivative exposure is
currently sufficiently limited, so as not to affect the ratings
that we have assigned," S&P said.

"Taking into account our credit and cash flow analysis, and our
2012 counterparty criteria, we consider the credit enhancement
available to the class A, B, C, E and RCF notes in this
transaction to be commensurate with our current ratings. We have
therefore affirmed our ratings on these classes of notes," S&P
said.

"The application of our largest obligor default test constrained
our rating on the class D notes, even though the results of our
cash flow analysis showed that these notes were passing at higher
ratings. This test is a supplemental stress test that we
introduced in our 2009 CDO criteria update. We have therefore
lowered to 'CCC+ (sf)' from 'B+ (sf)' our rating on the class D
notes," S&P said.

"In our previous review, the application of our largest obligor
default test constrained our rating on the class E notes at a
lower rating level, with all the remaining classes not
constrained by the supplemental stress test," S&P said.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

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

     http://standardandpoorsdisclosure-17g7.com/1111738.pdf

RATINGS LIST

Class          Rating
         To               From

BACCHUS 2007-1 PLC
EUR450 Million Senior Secured and Deferrable Floating-Rate Notes

Rating Lowered

D        CCC+ (sf)         B+ (sf)

Ratings Affirmed

A        AA- (sf)
B        A- (sf)
C        BB+ (sf)
E        CCC- (sf)
RCF      AA- (sf)


ESENTUAL LTD: Loss of Major Contract Causes Administration
----------------------------------------------------------
Insider Media News reports that government legislation changes
led to the loss of a major contract and pushed Esentual into
administration.

The business, which provided PAYE services to temporary workers,
entered administration in June, according to Insider Media News.

Paul Appleton and Stephen Katz of David Rubin & Partners were
appointed joint administrators of Esentual Ltd on 14 June 2012.

Insider Media News notes that on June 28, a deal was accepted to
sell the business and assets for GBP95,000.

The report notes that the company's turnover "grew significantly"
to June 2012 but there were "a number of operational and
financial issues which impacted on profitability as a consequence
of its expansion due to poor internal controls and corporate
governance practices".

The administrators said this led to the company failing to
account for PAYE for its head office staff for three years and
incurring bad debts of GBP250,000, Insider Media News notes.

The report relates that it was the subject of a PAYE compliance
enquiry in 2009, which is still currently running, and made three
Time to Pay requests to Her Majesty's Revenue & Customs (HMRC)
before it was accepted in June 2010.

Turnover at the business increased to GBP44 million by 2011/12
and it was servicing 2,700 contractors per week but its
accumulated losses were GBP1.6 million for the year to March 31,
2011, the report notes.

Insider Media News discloses that in April 2012, Staffline lost a
major contract with DHL to provide temporary contract staff to
work at Jaguar Landrover sites across the UK.  The administrators
said this was because of the "significant impact on the provision
and treatment of temporary staff" following the introduction of
the Agency Workers Regulations, Insider Media News says.

As a result of this, the report notes that Esentual lost more
than 50% of its business overnight.

The administrators said the loss of the company's largest client
"coupled with the worsening economic conditions" put a
significant strain on its working capital and left it in a
position were it was unable to meet its ongoing obligations,
Insider Media News discloses.

The company's name is expected to be changed but this is yet to
happen and all employee contracts were adopted by the purchaser,
the administrators said, Insider Media News adds.

Bracknell-based Esentual is an umbrella company.  Esentual
started trading in 2004 and was one of the first PAYE umbrella
companies providing tax efficient structures for temporary
workers.  Its main customers were employment agencies such as Top
Temps and Staffline, the administrators said.


KUMUKU: Travelers in Limbo After Firm Falls Into Administration
---------------------------------------------------------------
TNT Magazine reports that travelers booked on to tours with
Kumuka have been left in limbo after the adventure travel firm
was placed into administration.

Kumuka has confirmed tours up to July 22 will still run, as well
as the UK the worldwide company has branches in Canada, South
Africa and Australia, according to TNT Magazine.

Kumuka offered more than 600 tours to Africa, Asia, Australasia,
Antarctica, North America, Latin America and Europe.


MF GLOBAL: Trustee Considering Suits Against U.K. Staff
-------------------------------------------------------
Jeremy Hodges and Kit Chellel at Bloomberg News report that the
bankruptcy trustee of MF Global Holdings Ltd. is seeking to
interview former London employees of the failed broker as it
considers lawsuits against the U.K. unit and its staff.

According to the report, Louis Freeh, the trustee for MF Global's
parent company in New York, is seeking to recover at least $233
million that was transferred into the U.K. in the days before the
brokerage's collapse, according to papers from a July 20 London
court hearing.  Those payments "may give rise to substantial
claims" against the company or employees, Freeh's lawyers said in
the documents.

The report notes that former MF Global Chairman Jon Corzine, and
other executives who oversaw $6.3 billion in trades on European
national debt, may face negligence lawsuits in the U.S. for their
role in the company's downfall, according to a June report by the
separate trustee for the MF Global Inc. brokerage arm. The trades
led to margin calls and credit downgrades before the firm filed
the eighth-largest U.S. bankruptcy in October.

The report relates that lawyers for Mr. Freeh appeared at a
London court hearing on July 20 to seek permission to bring
claims in the U.K., and work out a schedule for litigation.  Mr.
Freeh is seeking several hundred million dollars from MF Global
UK Ltd. for internal repurchase agreements used to move money to
the U.K. unit to meet margin calls.

In the summer of 2011, MF Global UK staff told the British
Financial Services Authority they had sufficient liquidity to
meet the margin calls, even though they knew the firm wouldn't
be able to cope with requests for $900 million, Freeh's lawyers
said in court papers.

Freeh has made contact with at least 11 former MF Global UK
employees including its former European treasurer Russell Haley,
his lawyers said in court documents. They haven't co-operated
with requests for interviews.

Duncan Aldred, a lawyer at London firm CMS Cameron McKenna
LLP, is representing former employees of MF Global UK.

                          About MF Global

New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/
-- was one of the world's leading brokers of commodities and
listed derivatives.  MF Global provided access to more than 70
exchanges around the world.  The firm is also one of 22 primary
dealers authorized to trade U.S. government securities with the
Federal Reserve Bank of New York.  MF Global's roots go back
nearly 230 years to a sugar brokerage on the banks of the Thames
River in London.

MF Global Holdings Ltd. and MF Global Finance USA Inc. filed
voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-
15059 and 11-5058) on Oct. 31, 2011, after a planned sale to
Interactive Brokers Group collapsed.  As of Sept. 30, 2011, MF
Global had $41,046,594,000 in total assets and $39,683,915,000 in
total liabilities.  It is easily the largest bankruptcy filing so
far this year.

Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel.  The Garden City Group, Inc., serves as
claims and noticing agent.  The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of
MF Global Finance USA Inc.

The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers.  James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act.  He is a partner at
Hughes Hubbard & Reed LLP in New York.

Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy
filing.

U.S. regulators are investigating about $633 million missing from
MF Global customer accounts, a person briefed on the matter said
Nov. 3, according to Bloomberg News.


TITAN EUROPE: Fitch Assigns 'BB' Ratings on Two Note Tranches
-------------------------------------------------------------
Fitch Ratings notes that Titan Europe 2006-FS's class A1 notes
(previously rated 'A-'/Rating Watch Negative) have been prepaid
in full ahead of their extended maturity date of September 2014,
as indicated in a bondholders report.

As previously highlighted in Fitch's commentary published on
May 1, 2012, this prepayment effectively follows Terra Firma's
leveraged buyout of Four Seasons Health Care (FSHC) for a total
consideration of GBP825 million.  This transaction, of which the
completion was announced on July 12, 2012, resulted in the
refinancing of FSHC's existing debt through the proceeds of both
GBP525 million of new corporate bonds and GBP345 million of
equity contribution, representing a FY12 EBITDAR adjusted
leverage of 6.2x (down from 7.8x in FY11).

The new debt issued is rated by Fitch and consists of two
tranches of notes, namely GBP350 million and GBP175 million of
senior secured and unsecured notes, both with assigned ratings of
'BB'/'RR1'.


* UK: Number of Scottish Corporate Insolvencies Hit Record High
---------------------------------------------------------------
BBC News reports that the number of companies going bust in
Scotland has reached a new record high.

A total of 420 firms became insolvent or entered receivership in
the first quarter of the financial year, BBC says, citing figures
released by Accountant in Bankruptcy.

That is 9.1% up on the record level set in the previous quarter,
and 22.4% higher than the same period last year, BBC notes.

According to BBC, it included 348 compulsory liquidations, 62
creditors' voluntary liquidations and 10 receiverships.



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


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

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
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *