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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, July 27, 2012, Vol. 13, No. 149

                            Headlines



F R A N C E

PEUGEOT CITROEN: Posts EUR819 Million Losses in First Half
PEUGEOT SA: Fitch Downgrades LT Issuer Default Rating to 'BB'
PEUGEOT SA: S&P Cuts Long-Term Corporate Credit Ratings to 'BB'


G E R M A N Y

MUENCHENER HYPOTHEKENBANK: Moody's Affirms 'D-' BFSR' Outlook Neg
PRAKTIKER AG: Gets Rescue Offer From Clemens Vedder
TITAN EUROPE 2006-5: Fitch Lowers Rating on Cl. D Notes to 'Csf'


G R E E C E

* GREECE: Fitch Maintains 'B-' Ratings on Mortgage Covered Bonds


I R E L A N D

ANGLO IRISH: Ex-Chief Appears in Court in Collapse Probe
ANTHRACITE EURO: Moody's Cuts Ratings on 3 Note Classes to 'C'
CELTIC HELICOPTERS: Creditors Set to Appoint Liquidator on Aug. 7
COMMERZBANK EUROPE: Moody's Withdraws 'D+' Finc'l Strength Rating
EPIC LIMITED: Fitch Cuts Ratings on Two Note Classes to 'CCCsf'

PERMANENT TSB: Set to Unveil Details of Restructuring Plan


K A Z A K H S T A N

DELTA BANK: S&P Affirms 'B/B' Counterparty Credit Ratings


N O R W A Y

EKSPORTFINANS ASA: S&P Cuts Rating on Subordinated Debt to 'BB-'


R U S S I A

EUROPEAN TRUST: Moody's Cuts National Scale Rating to 'Ba3.ru'
METALLOINVEST JSC: S&P Assigns 'BB-' Corporate Credit Rating
YAKUTSK FUEL: Fitch Assigns 'B-' LT Issuer Default Ratings


S L O V E N I A

ABANKA VIPA: Moody's Downgrades Deposit Ratings to 'Caa1'


S P A I N

ABENGOA SA: Fitch Lowers Longterm Issuer Default Rating to 'B+'
AYT CAIXA: Fitch Affirms 'Csf' Ratings on Two Note Classes
BANKIA GROUP: Wants to Pay Pref. Shareholders Close to Face Value
* SPAIN: Urges EU Leaders to Accelerate Rescue Plan for Banks


U K R A I N E

* CITY OF KYIV: S&P Affirms 'B-' Long-term Issuer Credit Rating


U N I T E D   K I N G D O M

JJB SPORTS: To Seek Another Round of Rescue Funds
ROYAL BANK: Entry Into CSAs No Impact on Moody's Notes Rating
SALFORD CITY: Chairman Dismisses Administration Rumors
SAMUEL COOKE: Police Probe Customers Amid Administration
SANDWELL NO. 1: S&P Lowers Rating on Class E Notes to 'B-'

TIUTA INTERNATIONAL: Placed Into Administration


X X X X X X X X

* BOOK REVIEW: Abraham Zaleznik's Learning Leadership


                            *********



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F R A N C E
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PEUGEOT CITROEN: Posts EUR819 Million Losses in First Half
----------------------------------------------------------
BBC News reports that Peugeot Citroen posted a six-month loss of
EUR819 million (GBP638 million).

The firm said sales in the six months through the end of June
2012 had fallen by 5.1%, BBC relates.

According to BBC, Peugeot, which made a profit of EUR806 million
in the first half of 2011, said it would not break even until
2014.

The company, which is Europe's second bigget carmaker, is in the
process of cutting 8,000 jobs, BBC says.

Peugeot, whose loss was twice the amount expected, is also
closing one of its two Paris production sites, BBC discloses.

The carmaker has cut its debt by EUR1 billion since the end of
last year, but still has debts of EUR2.4 billion, according to
BBC.

Peugeot says the closure of the Aulnay factory near Paris will
save EUR600 million, while it will cut another EUR550 million
from investment and save a further EUR350 million through a
recently-announced alliance with General Motors, BBC notes.

PSA Peugeot Citroen S.A. -- http://www.psa-peugeot-citroen.com/
-- is a France-based manufacturer of passenger cars and light
commercial vehicles.  It produces vehicles under the Peugeot and
Citroen brands.  In addition to its automobile division, the
Company includes Banque PSA Finance, which supports the sale of
Peugeot and Citroen vehicles by financing new vehicle and
replacement parts inventory for dealers and offering financing
and related services to car buyers; Faurecia, an automotive
equipment manufacturer focused on four component families: seats,
vehicle interior, front end and exhaust systems; Gefco, which
offers logistics services covering the entire supply chain,
including overland, sea and air transport, industrial logistics,
container management, vehicle preparation and distribution, and
customs and value added tax (VAT) representation, and Peugeot
Motocycles, which manufactures scooters and motorcycles.


PEUGEOT SA: Fitch Downgrades LT Issuer Default Rating to 'BB'
-------------------------------------------------------------
Fitch Ratings has downgraded Peugeot SA's (PSA) Long-term Issuer
Default Rating (IDR) and senior unsecured rating to 'BB' from
'BB+'.  The Outlook on the Long-term IDR is Negative.

The rating action reflects Fitch's revised expectations for
revenue, profitability and underlying cash generation in 2012-
2014, following the group's H112 results and revised guidance for
the year.  Fitch previously commented that a negative rating
action could stem from a sharper-than-expected fall in global
sales in 2012, leading to negative operating margins and weaker
financial metrics, including FFO net adjusted leverage remaining
above 1.5x and/or cash from operations (CFO) on total adjusted
debt remaining below 25%.

Fitch now expects PSA's group revenue to fall by about 6.5% in
2012, including more than 10% at the core automotive division,
and industrial operating margin to be negative 0.4% in 2012, from
1.4% in 2011, compared with the agency's base case in Q112 of
approximately breakeven for the year.  In particular, Fitch
believes that the automotive business could post a negative
operating profit of up to EUR1 billion in 2012 (about negative
2.5% operating margin), which will not be fully compensated by
the better performance of the other divisions (Gefco, Faurecia).
Furthermore, Fitch's revised base case incorporates continuous
negative FCF in 2012 and 2013, after an already EUR1.9 billion
negative FCF in 2011 according to Fitch's calculation, with FCF
probably going back to around breakeven in late 2014 only.

The agency is particularly concerned about the extent of
automobile operating losses and cash burn in Europe, stemming
from falling revenue and structurally poor cost structure.  In
addition, contrary to other manufacturers, the group is losing
money in several international markets, including Latin America
and Russia.  PSA posted a EUR662 million operating loss at its
automobile division in H112 and Fitch expects further losses in
H212, albeit lower than in H112, and 2013.  Fitch also believes
that benefits from the recent launch of the critical Peugeot 208
will be more than offset by the extremely tough operating
environment in 2012, including falling demand in PSA's main
markets, increasing competition and significant ongoing pricing
pressure.

Fitch acknowledges the various restructuring measures announced
by the company but believes that they are still subject to
notable execution risk and that their full positive effects could
accrue only beyond 2014.  Cost saving actions include the
expected closure and reorganization of the factories in Aulnay
and Rennes, respectively, by 2014, which will lead to the
departure of about 4,400 workers, as well as the lay-off of 3,600
further employees across the group.

The alliance with General Motors Company (GM, 'BB'/Positive)
announced in February 2012 should yield material savings thanks
to the creation of a global purchasing joint-venture and
cooperation in product development and platform consolidation.
However, benefits will only start accruing in 2013 and accelerate
in 2014.  Reductions in investments including capex and R&D will
also have a positive short-term effect on earnings and cash
generation, but could impair the quality of the group's medium-
to long-term product offering through lumpier innovation.

The group's liquidity remains comfortable for the rating
category.  At end-H112, reported cash and equivalents of EUR7.6
billion largely covered EUR2.7 billion of short-term debt.
Furthermore, negative underlying FCF anticipated in 2012 by Fitch
will be compensated by the proceeds expected from the asset
disposal program. Fitch expects PSA to receive more than EUR1.5
billion from asset divestitures including rental car business
Citer, real estate and a stake in logistics division Gefco.  The
group's industrial cash position has also been boosted by
proceeds from a EUR1 billion capital increase in H112 and a
EUR360 million special dividend from Banque PSA Finance.  As a
result, Fitch expects industrial adjusted net debt to decline to
approximately EUR4.6 billion at end-2012, including adjustments
for operating leases, from EUR5.8 billion at end-2011, but to
creep up again at end-2013 from negative FCF.  The extent of
future working capital movements adds uncertainty to the exact
amount of debt to be reported at the end of each year.

What Could Trigger A Rating Action?

Positive: An upgrade is unlikely in the foreseeable future, but
the Outlook could be stabilized if the group is on track with its
target to improve operating margins and post a positive FCF by
end-2014.

Negative: The ratings could be downgraded if the environment
continues to deteriorate, leading to further revenue decline at
group level and continuous negative operating margins (actual or
expected), or if Fitch believes that the group will not be able
execute successfully on its plans of returning to a positive FCF
by end-2014.

Fitch will also reassess its view on the European auto sector
overall within the next two months following a further review of
PSA's, Renault SA's ('BB+'/Stable) and Fiat Spa's ('BB'/Negative)
current and expected performance and a deeper comparison with
close international peers.


PEUGEOT SA: S&P Cuts Long-Term Corporate Credit Ratings to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB' from
'BB+' its long-term corporate credit ratings on France-
incorporated European auto manufacturer Peugeot S.A. (PSA) and
related entity GIE PSA Tresorerie. "At the same time, we affirmed
our 'B' short-term ratings on the companies. The outlook is
negative," S&P said.

"We have also lowered to 'BB' from 'BB+' our issue rating on the
senior unsecured notes issued by PSA and GIE PSA Tresorerie. The
recovery rating on these notes is unchanged at '3', indicating
our expectation of meaningful (50%-70%) recovery in the event of
a payment default," S&P said.

                           Rationale

"The downgrade reflects our expectation that Peugeot's credit
ratios will be below the target ratios commensurate with its
previous ratings in the coming 18 months and that the business
environment for European volume automakers is not showing any
signs of recovery," S&P said.

"The company's release of its first-half results confirms that
PSA is burning substantial cash in its core automotive operations
on the back of an ongoing very weak European auto market," S&P
said.

"In our base-case scenario for 2012, we foresee the company
generating negative free operating cash flow (FOCF), purely from
operations, of about EUR2.0 billion this year, with only a
limited improvement expected for 2013, when the main cash impact
of recently announced restructuring measures will be felt. In our
view, the company's ability to stabilize debt this year and next
will rely primarily on one-off corporate measures like
divestments or the recent equity increase subscribed by General
Motors Corp. (GM, BB+/Stable/--)," S&P said.

"In our base case, we anticipate that PSA's revenues will fall by
several percentage points in 2012 primarily on steep declines in
vehicle unit sales in several European countries, including
France, Italy, and Spain. Europe still contributed 58% to PSA's
unit sales in 2011. Overall for the year, PSA's unit sales may
fall by more than 10%, with a 13% effective decline already
experienced year on year during the first half," S&P said.

"In our base case for full-year 2012 and in light of the EUR662
million loss PSA's automotive operations already generated during
first-half 2012, we expect these operations to report a recurring
operating loss in excess of EUR1 billion. This is likely to be
only partly offset by earnings made by PSA's captive finance
subsidiary, Banque PSA Finance and the company's main industrial
subsidiary, Faurecia, from which we expect steady earnings
contributions this year. Overall, we expect that it will be
difficult for PSA to break even at the EBIT level in 2012. We
note for instance that the company's European capacity
utilization rate is at an all-time low of 76%. In addition, while
sales outside Europe are growing, this has so far failed to
translate into any substantial positive impact on consolidated
operating earnings for the automotive division," S&P said.

"We consider that PSA's recently weak operating performance will
likely continue in 2013 as a result of its high operating
leverage, the cash impact of restructuring charges, and
continuing stiff competition in its European home market. Under
our base-case scenario, the group's core automotive operations
will still report substantial negative operating earnings in
2013, in a European car market that we expect to remain sluggish
following the 7% drop likely to be experienced this year," S&P
said.

"We consequently anticipate that PSA will at best maintain its
ratio of funds from operations (FFO) to Standard & Poor's-
adjusted debt at about 20% by year-end 2013, factoring in some
real moderation in capital expenditures (capex) from the 2011
high, no dividends, and no adverse working capital swings," S&P
said.

"Under our base case, we foresee PSA deleveraging in 2012 only in
case of high asset disposals, and we also expect the company to
be unable to break even in FOCF terms before 2014," S&P said.

                          Liquidity

"The short-term rating is 'B'. We view PSA's liquidity profile as
adequate under our criteria, based on our projection that the
ratio of potential sources to uses of liquidity will exceed 1.5x
in each of the coming two years," S&P said. The company's
financial flexibility and liquidity are underpinned by:

    * "Cash and cash equivalents of EUR7.6 billion in the
      industrial division at end-June 2012, of which we view
      EUR2.0 billion as necessary to maintain ongoing
      operations," S&P said.

    * Unused company credit lines, notably a EUR2.4 billion
      committed syndicated bank line of which EUR2.2 billion
      matures in July 2015 and EUR0.2 billion in July 2014.

"These liquidity sources compare with EUR2.5 billion of short-
term debt borne by the industrial division and maturing within 12
months as of June 30, 2012," S&P said.

"Although the company benefits from an extended debt maturity
profile, repeated negative free cash flow from operations would
ultimately take a toll on the company's liquidity position. In
the medium term, we would expect measures to limit capital
investment and contain costs in the troubled European market to
mitigate the risk of more substantial cash uses than PSA can fund
so as to maintain adequate liquidity," S&P said.

                         Recovery analysis

"We have revised the issue rating on the senior unsecured notes
issued by PSA to 'BB', in line with the corporate credit rating
on the group. The recovery rating on these notes is maintained at
'3', indicating our expectation of meaningful (50%-70%) recovery
in the event of a payment default," S&P said.

"The recovery rating on the notes is underpinned by the company's
substantial enterprise value based on its good market positions
and its extensive product range with well-recognized brands. The
recovery ratings are constrained at the '3' level by the
unsecured nature of the notes, the possibility of capital
structure changes on the path to default, and the relatively
unfriendly jurisdiction for creditors in France," S&P said.

"In line with our criteria to calculate recovery, we have
simulated a hypothetical default scenario for Peugeot. Such a
hypothetical default would most likely result from overall
economic deterioration and declining car sales. Under our
simulated scenario, we assume a default in 2016 based on the
factors," S&P said.

"We estimate the stressed enterprise value of the group's
automobile division at the point of hypothetical default at about
EUR9.8 billion. As part of our valuation approach, we applied
haircuts to asset values, taking into account balance sheet
shrinkage under a default scenario and forced sale values. This
is because we believe that stressed balance sheet asset values
provide a good indicator of the enterprise value at default. In
line with our captive finance methodology, we have not included
in our analysis PSA's wholly owned finance subsidiary, BPF. We
have also assumed that the existing committed facilities would be
maintained on an unsecured basis until the point of default and
would be fully drawn at that time. In addition, we have assumed
that all existing debt maturing in the coming three to four years
will be refinanced," S&P said.

"To calculate unsecured debt recoveries, we deducted EUR4.8
billion in priority liabilities from the estimated stressed
enterprise value. These liabilities include secured loans,
structurally senior debt, enforcement costs, 50% of the year-end
2011 reported net pension deficit, and prepetition interest. We
estimate that the residual value would allow for recovery
prospects in the 50%-70% range (equivalent to a recovery rating
of '3') for the roughly EUR7 billion of senior unsecured claims
(including notes and prepetition interest) outstanding at
default," S&P said.

                            Outlook

"The negative outlook captures the risk that the company might be
unable to meaningfully reduce the level of cash flow burn in 2013
from the current unsustainably high level and a risk of ongoing
reduction in car sales. While so far PSA has shown good progress
in executing its disposal strategy, the outlook also reflects the
risks that turbulent capital markets and political risk may
hamper the execution of PSA's announced restructuring and
disposal plans," S&P said.

"Furthermore, there is uncertainty whether in 2013 PSA's key
markets will halt their decline and how competitively PSA will be
positioned in these markets," S&P said.

"We would lower the rating if PSA was unable to maintain its
ratio of FFO to adjusted debt at about 20% throughout 2012-2013--
the level we see as commensurate with the company's 'BB' rating.
An additional revenue decline in 2013, coupled with a further
gross margin weakening, could cause this ratio to fall below our
target. A downgrade could also occur if asset disposals are not
forthcoming in 2012-2013," S&P said.

"In our base-case scenario of anemic car market growth in Europe
in 2013, any marked improvement in PSA's credit ratios would
likely only stem from further progress in its asset streamlining,
including divestments and plant closures, as well as a
conservative approach to capex, dividends, and working capital
management," S&P said.

"We could revise the outlook to stable if we saw clear evidence
of improving credit ratios, specifically FFO to adjusted debt
well above 20% over the medium term, which will partly depend on
sufficiently supportive industry conditions, but also on PSA's
demonstrated ability to restore profitability and reduce debt,"
S&P said.

Ratings List

Downgraded; Ratings Affirmed
                                        To                 From
Peugeot S.A.
GIE PSA Tresorerie
Corporate Credit Rating                BB/Negative/B
BB+/Negative/B
Senior Unsecured*                      BB                 BB+
   Recovery Rating                      3                  3

Ratings Affirmed

GIE PSA Tresorerie
Commercial Paper                       B

*GIE PSA Tresorerie's senior unsecured debt is guaranteed by
Peugeot S.A.



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


MUENCHENER HYPOTHEKENBANK: Moody's Affirms 'D-' BFSR' Outlook Neg
-----------------------------------------------------------------
Moody's Investors Service has affirmed Muenchener Hypothekenbank
eG's A2 long-term debt and deposit ratings and concurrently
lowered MuenchenerHyp's standalone bank financial strength rating
(BFSR) to D -- equivalent to a ba2 standalone credit assessment
-- from D+/ba1. The outlook on all ratings has been changed to
negative from stable.

The affirmation of the A2 ratings reflects Moody's assessment of
the strong sector and systemic support that it continues to
incorporate into MuenchenerHyp's long-term ratings.

Moody's says that the lowering of the BFSR was driven by (i) the
bank's persistently weak profitability and internal capital
generation; and (ii) the bank's moderate capitalization in the
context of its risk profile and its low quality of capital. In
addition, the BFSR is constrained by the bank's ongoing asset-
quality pressures related to international commercial real estate
(CRE) and exposures to peripheral euro area financial
institutions and sovereigns.

Moody's has also affirmed MuenchenerHyp's Prime-1 short-term
rating and downgraded the Tier 1 instruments issued by GFW
Capital GmbH and Isar Capital Funding I Limited Partnership to
Ba1 (hyb) from Baa3 (hyb).

Ratings Rationale

-- Affirmation of Long-Term Ratings

The affirmation of the long-term debt and deposit ratings at A2
reflects Moody's view that MuenchenerHyp will continue to benefit
from the existing support mechanism available to members of the
group of co-operative banks in Germany (Bundesverband der
Deutschen Volksbanken und Raiffeisenbanken, BVR, unrated).
Moreover, Moody's anticipates that the German co-operative sector
-- and thereby indirectly MuenchenerHyp -- will continue to
benefit from a very high probability of systemic support.
Following the lowering of the standalone credit assessment,
MunchenerHyp's A2 long-term ratings now benefit from six notches
of rating uplift (from five).

-- Lowering of StandAlone BFSR

Moody's believes that the challenges that MuenchenerHyp faces in
the current fragile environment are commensurate with a D/ba2
BFSR. This reflects MuenchenerHyp's weakened loss-absorption
capacity -- driven by last year's significant losses on Greek
exposures which were partly offset by reserve releases -- and its
continued weak profitability. These two factors represent major
rating constraints, implying that the bank might have limited
capacity to deal with future unexpected losses. Combined with the
low quality of the bank's capital, Moody's believes that
MuenchenerHyp's owners might have to take further capital
measures. The low capital quality is reflected by its high share
of hybrid instruments not qualifying for core capital under Basel
III that might have to be replaced to meet regulatory
requirements.

Following the implementation of the IRB approach, the bank's Tier
1 ratio stood at 8.9% as per audited FYE 2011 accounts, up from
6.4% a year earlier. However, its absolute core capital base
remained unchanged and was only 5.0%, according to Moody's
definition of tangible common equity. As a result, the rating
agency continues to view MuenchenerHyp's capital as weak, given
its substantial exposures to international CRE loans and
peripheral euro area countries, and future demands from upcoming
regulatory requirements.

Rationale for the Negative Outlook

The negative outlook on the D BFSR is underpinned by
MuenchenerHyp's exposure to peripheral euro area sovereigns and
financial institutions totaling EUR1.5 billion and representing
approximately roughly 200% of regulatory Tier 1 capital. A major
part of its peripheral euro area financial institutions book of
EUR1.0 billion is invested in covered bonds currently showing
adequate over-collateralization levels . In addition,
MuenchenerHyp's core residential real-estate and domestic public-
finance activities continue to perform well and its relative risk
position has improved through the discontinuation of its US CRE
business. However, Moody's believes that the difficult operating
conditions in Europe increase the potential for unexpected losses
exceeding the bank's limited internal resources. The negative
outlook on the A2 long-term ratings follows the negative outlook
on the BFSR.

Moody's notes positively that the company continues to benefit
from strong access to capital markets, driven by its presence as
a German covered bond issuer and further supported by strong
sector cohesion.

Hybrid Ratings Downgraded to Ba1 (hyb); Outlook Negative

As per Moody's methodology for hybrid ratings, the assigned
ratings for the capital notes and the fixed-rate capital
securities issued by MuenchenerHyp's wholly owned subsidiaries
GFW Capital and Isar Capital Funding I are three notches below
the baa1 adjusted standalone credit strength, which reflects the
D BFSR and incorporates four notches of co-operative support.

What Could Move the Rating Up/Down

Further downwards pressure could develop on the BFSR if (i)
MuenchenerHyp's non-performing loans deteriorate further; or (ii)
its securities portfolio suffers credit deterioration. The BFSR
could be lowered if the bank faces difficulties in converting its
existing Tier 1 instruments into stronger forms of capital.

The long-term ratings could be downgraded following a downgrade
of the BFSR, or if the co-operative sector support for the bank
and/or systemic support for the sector declines.

Upwards pressure on MuenchenerHyp's standalone rating could
result from (i) a rapid improvement in its quantity and quality
of capital; (ii) rising and sustained profitability, without
compromising underwriting standards or risk appetite; and (iii)
overall lower asset-quality pressures, in particular a
contraction of its portfolio of non-performing loans and a
further reduction of exposures to countries currently facing
credit pressures.

Upwards pressure on MuenchenerHyp's A2 debt and deposit ratings
is unlikely to develop in the foreseeable future, given (i) the
negative outlook; and (ii) that these ratings already factor in
substantial co-operative sector support for the bank and systemic
support for the sector.

Principal Methodologies

The principal methodology used in these ratings was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.


PRAKTIKER AG: Gets Rescue Offer From Clemens Vedder
---------------------------------------------------
Joern Poltz and Alexander Huebne at Reuters report that Praktiker
AG has received an offer of financial help from investor Clemens
Vedder, who joined critical shareholders in stating his
opposition to a financing deal with a U.S. investor.

Praktiker, Reuters says, is seeking financing worth around EUR240
million (US$290 million) so it can restructure and stave off
bankruptcy.  It ran into a steep loss in 2011 after an abrupt end
to its popular discounts put customers off, Reuters recounts.

Around EUR85 million of that should come from a high-interest
loan from U.S. investor Anchorage, which in return will gain
options to 15% of Praktiker's stock, Reuters notes.

Reuters relates that a spokesman for Mr. Vedder's Goldsmith
vehicle, which he owns with long-term business partner Klaus-
Peter Schneidewind, said he wanted to invest at least EUR30
million and had not been in contact with fund manager Isabella de
Krassny, who represents shareholders with around 16% of
Praktiker.

In a statement, Mr. Vedder, as cited by Reuters, said his offer
was more attractive than Anchorage's as it did not have such high
costs.

According to Reuters, a spokesman for Praktiker said the firm had
not seen the offer from Mr. Vedder and that it was finalizing
terms with Anchorage.

Praktiker AG is a German DIY chain.


TITAN EUROPE 2006-5: Fitch Lowers Rating on Cl. D Notes to 'Csf'
----------------------------------------------------------------
Fitch Ratings has downgraded Titan Europe 2006-5 plc's classes A3
to D and affirmed all others classes; as follows:

  -- EUR294.3m Class A1 (XS0277721618) affirmed at 'AAsf';
     Outlook Stable
  -- EUR109m Class A2 (XS0277725361) affirmed at 'Asf'; Outlook
     Stable
  -- EUR60.1m Class A3 (XS0277726500) downgraded to 'BBsf' from
     'BBB-'; Outlook Negative
  -- EUR55.1m Class B (XS0277728381) downgraded to 'CCCsf' from
     'Bsf'; Recovery Estimate (RE) 65%
  -- EUR41.7m Class C (XS0277729439) downgraded to 'CCsf' from
     'CCCsf'; RE0%
  -- EUR35.9m Class D (XS0277732144) downgraded to 'Csf' from
     'CCsf'; RE0%
  -- EUR4.9m Class E (XS0277733548) affirmed at 'Csf' ; RE0%
  -- EUR11.9m Class F (XS0277734199) affirmed at 'Csf'; RE0%

The downgrade of the note classes A3 to D is reflective of the
higher level of losses expected to emerge from both the EUR239.6
million Diva Multifamily Portfolio loan and the EUR114.8 million
Quartier Shopping Centre loan.

The collateral supporting the Diva Multifamily Portfolio loan was
sold in February 2012 following a work out of the loan which was
brought on by the insolvency of the sponsor.  Gross sale proceeds
were EUR203.5 million against a securitized loan balance of
EUR239.6 million.  However net proceeds have not been
distributed, due to subordinate creditors challenging the
interpretation of priority of payments, as reported in the loan's
Intercreditor Deed.  Given the lack of clarity, Fitch has took a
conservative stance and has estimated that losses arising from
this loan will completely write down the note classes D through F
and will likely also impact the class C.

The Quartier 206 Shopping Centre loan is secured by a
retail/office mixed-use property well located in the high end
shopping area of Friedrichstrasse, Berlin.  As reported at the
last review, the performance of the collateral deteriorated in
2010 due to a significant reduction in rental income, largely due
to the non payment of contracted rental obligations by borrower-
related entities.  The borrower was forced into administration in
July 2011, with the administrator appointing a new asset manager
to stabilize future income and preserve the intrinsic value of
this potentially prime asset.  The most recent reported interest
coverage ratio (ICR), as at Q211, is only 0.31x, which suggests
that ongoing interest shortfalls are accruing and capitalizing, a
factor which may further constrain loan recoveries.

Notwithstanding the asset location, Fitch estimates the loan to
value ratio (LTV) to be in excess of 140% and therefore projects
a substantial loss in its analysis.  When combined with the
expected losses on the Diva loan, the partial write-downs may
reach as high as the class B notes.

With the sequential payment trigger now irreversible, Fitch
regards the EUR160 million Hotel Adlon loan, originally envisaged
to pay down in a modified pro-rata fashion, to be a material
driver to the redemption of the senior note classes.  The loan is
secured by a prominent five star hotel adjacent to the
Brandenburg Gate in Berlin, Germany.  The collateral was re-
valued in July 2011 at EUR242 million, representing a LTV of 66%
and although Fitch estimates leverage to be higher, the agency
believes that the 'trophy nature' of the asset should still
attract investor demand and therefore it is expected that the
loan will substantially contribute to the repayment of the class
A notes.

Titan Europe 2006-5 plc closed in December 2006 and was
originally the securitization of eight commercial loans
originated by Credit Suisse ('A'/Stable/'F1').  At the first
interest payment date (IPD), the EUR40.2m Hotel Balneario
Blancafort loan defaulted due to non-payment of debt service and
was subsequently repurchased by the originator.  No other loans
have since repaid, leaving the portfolio with seven loans secured
over 32 properties located across Germany (excludes properties
related to the Diva loan which have been sold); with an aggregate
securitized balance of EUR611.8 million.



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


* GREECE: Fitch Maintains 'B-' Ratings on Mortgage Covered Bonds
----------------------------------------------------------------
Fitch Ratings has maintained four Greek mortgage covered bonds'
'B-' ratings on Rating Watch Negative (RWN).  The rating action
follows the over-collateralization (OC) withdrawal notification
received from four issuers.

Alpha Bank (Alpha,'CCC'/'C'), EFG Eurobank (EFG,'CCC'/'C'),
National Bank of Greece (NBG,'CCC'/'C'; with regards to its
Programme II) and Piraeus Bank (Piraeus,'CCC'/'C') are in the
process of amending their program documentation in order to
remove the contractual OC commitments currently in place and
subsequently reduce OC to the minimum level required by the Greek
covered bond law (5.26%).

Following the revision of Greece's Country Ceiling from 'AAA' to
'B-' in May 2012, all Greek covered bond ratings are now capped
by the Country Ceiling.  The D-Factor of the four covered bond
programs remains at 11.5% with their rating on a probability of
default (PD) basis now equalized with the Long-Term IDR of the
four issuing banks ('CCC').  Based on the new reduced OC of
5.26%, a one-notch uplift for recoveries can be assigned in
accordance with Fitch's methodology.  As such, the resulting
covered bond ratings for Alpha, EFG, NBG Programme II and Piraeus
are 'B-' and are based on an asset percentage of 95% (equivalent
to an OC of 5.26%).

A one-notch downgrade of the Long-Term IDR of the issuer would
result in an equivalent downgrade of the corresponding covered
bonds.

The four covered bond programs have been maintained on RWN as a
result of the uncertainty surrounding the political situation in
Greece as well as Fitch's upcoming revision of the Greek mortgage
loss criteria over the next few weeks.  While Fitch has
considered the expected impact of the upcoming criteria update,
the agency does not expect to resolve the RWN before it completes
a full rating review of the four affected programs.



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


ANGLO IRISH: Ex-Chief Appears in Court in Collapse Probe
--------------------------------------------------------
BBC News reports that the former head of Anglo Irish Bank, Sean
FitzPatrick, has appeared in court in Dublin over alleged
financial irregularities at the bank.

According to BBC, Mr. FitzPatrick are among the three men that
face 16 charges in relation to an alleged failed attempt to prop
up Anglo's share price after a stock market collapse.

He was released on bail to appear in court again in October, BBC
relates.

It is the third time Mr. FitzPatrick has been arrested as part of
the three-and-a-half year long investigation into the collapse of
Anglo Irish Bank, but this was the first time he has appeared in
court, BBC notes.

The bank, now known as the Irish Bank Resolution Corporation
Limited (IBRC), was nationalized in 2009 at a cost of about EUR30
billion (GBP23.4 billion) to Irish taxpayers, BBC discloses.

Mr. FitzPatrick stepped down from his position in December 2008,
a month before Anglo had to be bailed out by the state, BBC
recounts.

Anglo Irish Bank was an Irish bank headquartered in Dublin from
1964 to 2011.  It went into wind-down mode after nationalization
in 2009.  In July 2011, Anglo Irish merged with the Irish
Nationwide Building Society, with the new company being named the
Irish Bank Resolution Corporation.


ANTHRACITE EURO: Moody's Cuts Ratings on 3 Note Classes to 'C'
--------------------------------------------------------------
Moody's Investors Service has affirmed all classes of Notes
issued by Anthracite Euro CRE CDO 2006-1 plc. The affirmations
are due to key transaction parameters performing within levels
commensurate with the existing ratings levels. While several key
indicators may indicate improvement in the credit risk of the
collateral, the increase in the level of non-performing
collateral since last review is offsetting improvement in the
performing collateral. Moody's will closely track the performance
of the non-performing collateral. The rating action is the result
of Moody's on-going surveillance of commercial real estate
collateralized debt obligation and collateralized loan obligation
(CRE CDO CLO) transactions.

  Class A Senior Floating Rate Notes due 2042, Affirmed at Caa3
  (sf); previously on Aug 6, 2010 Downgraded to Caa3 (sf)

  Class B Senior Floating Rate Notes due 2042, Affirmed at Ca
  (sf); previously on Aug 6, 2010 Downgraded to Ca (sf)

  Class C Deferrable Interest Floating Rate Notes due 2042,
  Affirmed at C (sf); previously on Aug 6, 2010 Downgraded to C
  (sf)

  Class D Deferrable Interest Floating Rate Notes due 2042,
  Affirmed at C (sf); previously on Jul 16, 2009 Downgraded to C
  (sf)

  Class E Deferrable Interest Floating Rate Notes due 2042,
  Affirmed at C (sf); previously on Jul 16, 2009 Downgraded to C
  (sf)

Ratings Rationale

Anthracite Euro CRE CDO 2006-1 plc is a static CRE loan
transaction backed by a portfolio of commercial mortgage backed
securities (28.8% of the pool balance), B-Notes and C-Notes
(56.9%), and, mezzanine loans (14.3%). As of the June 29, 2012
Trustee report, the aggregate Note balance of the transaction,
including preferred shares and deferred interest, has decreased
to EUR293.2 million from EUR342.5 million at issuance, with the
paydown directed to the Class A Notes, and interest PIK-ing of
the Class C Notes through Class E Notes as a result of failing
the senior most par value coverage test.

There are nineteen assets with par balance of EUR155.3 million
(53.4% of the current pool balance) that are considered Defaulted
Securities as of the June 29, 2012 Trustee report, compared to
fourteen defaulted assets with (31.5%) at last review. Moody's
does expect significant losses to occur from these defaulted
assets once they are realized.

Moody's has identified the following parameters as key indicators
of the expected loss within CRE CDO transactions: weighted
average rating factor (WARF), weighted average life (WAL),
weighted average recovery rate (WARR), and Moody's asset
correlation (MAC). These parameters are typically modeled as
actual parameters for static deals and as covenants for managed
deals.

WARF is a primary measure of the credit quality of a CRE CDO
pool. Moody's has updated credit assessments for the non-Moody's
rated collateral. The bottom-dollar WARF is a measure of the
default probability within a collateral pool. Moody's modeled a
bottom-dollar WARF of 7,852 compared to 8,377 at last review. The
current distribution of Moody's rated collateral and assessments
for non-Moody's rated collateral is as follows: Baa1-Baa3 (0.7%
compared to 1.0% at last review), Ba1-Ba3 (5.2% compared to 2.0%
at last review), B1-B3 (14.0% compared to 9.2% at last review),
Caa1-Caa3 (18.5% compared to 31.2% at last review), and Ca/C
(61.6% compared to 56.6% at last review).

WAL acts to adjust the probability of default of the collateral
in the pool for time. Moody's modeled to a WAL of 3.9 years
compared to 3.8 at last review. The current WAL assumption is
based on the current performing collateral pool and assumption
about extensions, if any.

WARR is the par-weighted average of the mean recovery values for
the collateral assets in the pool. Moody's modeled a fixed 3.5%
WARR compared to 6.2% at last review.

MAC is a single factor that describes the pair-wise asset
correlation to the default distribution among the instruments
within the collateral pool (i.e. the measure of diversity).
Moody's modeled a MAC of 99.9%, the same as at last review.

Moody's review incorporated CDOROM(R) v2.8, one of Moody's CDO
rating models, which was released on January 24, 2011.

The cash flow model, CDOEdge(R) v3.2.1.2, was used to analyze the
cash flow waterfall and its effect on the capital structure of
the deal.

Changes in any one or combination of the key parameters may have
rating implications on certain classes of rated notes. However,
in many instances, a change in key parameter assumptions in
certain stress scenarios may be offset by a change in one or more
of the other key parameters. In general, the rated notes are
particularly sensitive to changes in recovery rate assumptions.
Holding all other key parameters static, changing the recovery
rate assumption down from 3.5% to 1.0% or up to 13.5% would
result in average rating movement on the rated tranches of 0
notch downward and 0 to 6 notches upward, respectively.

The performance expectations for a given variable indicate
Moody's forward-looking view of the likely range of performance
over the medium term. From time to time, Moody's may, if
warranted, change these expectations. Performance that falls
outside the given range may indicate that the collateral's credit
quality is stronger or weaker than Moody's had anticipated when
the related securities ratings were issued. Even so, a deviation
from the expected range will not necessarily result in a rating
action nor does performance within expectations preclude such
actions. The decision to take (or not take) a rating action is
dependent on an assessment of a range of factors including, but
not exclusively, the performance metrics.

Primary sources of assumption uncertainty are the current
stressed macro-economic environment and continued weakness in the
occupational and lending markets. Moody's anticipates (i) delayed
recovery in the lending market persisting through 2013, while
remaining subject to strict underwriting criteria and heavily
dependent on the underlying property quality, (ii) strong
differentiation between prime and secondary properties, with
further value declines expected for non-prime properties, and
(iii) occupational markets will remain under pressure in the
short term and will only slowly recover in the medium term in
line with anticipated economic recovery. Overall, Moody's central
global macroeconomic scenario is for a material slowdown in
growth in 2012 for most of the world's largest economies fueled
by fiscal consolidation efforts, household and banking sector
deleveraging and persistently high unemployment levels. Moody's
expects a mild recession in the Euro area.

As the Euro area crisis continues, the rating of the structured
finance notes remain exposed to the uncertainties of credit
conditions in the general economy. The deteriorating
creditworthiness of euro area sovereigns as well as the weakening
credit profile of the global banking sector could negatively
impact the ratings of the notes. Furthermore, as discussed in
Moody's special report "Rating Euro Area Governments Through
Extraordinary Times -- An Updated Summary," published in October
2011, Moody's is considering reintroducing individual country
ceilings for some or all euro area members, which could affect
further the maximum structured finance rating achievable in those
countries.

The methodologies used in this rating were "Moody's Approach to
Rating SF CDOs" published in May 2012, and "Moody's Approach to
Rating Commercial Real Estate CDOs" published in July 2011.

Factors identified in the Rating Implementation Guidelines,
"Framework for De-Linking Hedge Counterparty Risks from Global
Structured Finance Cashflow Transactions" published in October
2010, and "Approach to Assessing Linkage to Swap Counterparties
in Structured Finance Cashflow Transactions: Request for Comment"
published in July 2012, were also taken into account in the
rating analysis.


CELTIC HELICOPTERS: Creditors Set to Appoint Liquidator on Aug. 7
-----------------------------------------------------------------
Suzanne Lynch at The Irish Times reports that a creditors'
meeting has been called for Celtic Helicopters Ltd.

According to the notice of the meeting, a liquidator will be
appointed at the meeting, which will take place on August 7 at
Bewleys Hotel Dublin Airport, the Irish Times says.

Latest accounts for Celtic Helicopters Limited, show that losses
at the helicopter operator widened to EUR1.78 million in 2010,
from EUR1.584 million the previous year, the Irish Times
discloses.

According to the Irish Times, the auditors' report notes that the
company is dependent, through Medeva Properties Limited, on the
continued support of the Irish Banking Resolution Corporation
(IBRC) and the support of other creditors, to continue in
business.

Celtic Helicopters Ltd. is a helicopter company controlled by
Ciaran Haughey, son of the late former taoiseach, and John
Barnicle.


COMMERZBANK EUROPE: Moody's Withdraws 'D+' Finc'l Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the A3 long-term and
Prime-2 short-term deposit ratings of Commerzbank Europe
(Ireland) plc (CBE(I)).

Ratings Rationale

Moody's has withdrawn the rating for its own business reasons.
Please refer to the Moody's Investors Service's Policy for
Withdrawal of Credit Ratings, available on its Web site,
www.moodys.com.

Moody's has also withdrawn CBE (I)'s D+ bank standalone bank
financial strength rating (BFSR), which maps to a baa3 standalone
credit assessment. Before the withdrawal, the outlook was
negative on the bank's BFSR and the A3 long-term deposit rating.
The ratings were closely linked to the ratings of its majority
owner, Commerzbank AG. This close linkage is due to (i)
Commerzbank's obligations under the existing Letters of Comfort;
and (ii) its obligations as a stakeholder based on the "unlimited
company" status of CBE (I), which requires Commerzbank to
compensate for any shortfalls of funds in liquidation.

The following ratings were withdrawn at the current rating level:

Commerzbank Europe (Ireland) plc

- BFSR: D+, negative

- Long-term Bank Deposits: A3, negative

- Long-term Issuer Rating: A3, negative

- Short-term Bank Deposits: P-2

Commerzbank Europe Finance (Ireland) plc

- BACKED Commercial Paper: P-2

Principal Methodologies

The principal methodology used in this rating was "Moody's
Consolidated Global Bank Rating Methodology" published in June
2012.


EPIC LIMITED: Fitch Cuts Ratings on Two Note Classes to 'CCCsf'
---------------------------------------------------------------
Fitch Ratings has downgraded and withdrawn Epic (Drummond)
Limited's floating rate notes due 2022 as follows:

  -- EUR698.4m class A due January 2022 (XS0303390453) downgraded
     to 'BBsf' from 'Asf'; Rating Watch Evolving (RWE); withdrawn

  -- EUR49.2m class B due January 2022 (XS0303391188) downgraded
     to 'Bsf' from 'BBBsf'; RWE; withdrawn

  -- EUR53.9m class C due January 2022 (XS0303391428) downgraded
     to 'CCCsf' from 'BBB-sf'; withdrawn

  -- EUR53.9m class D due January 2022 (XS0303391857) downgraded
     to 'CCCsf' from 'B+sf'; withdrawn

  -- EUR55.8m class E due January 2022 (XS0303392236) affirmed at
     'CCCsf'; withdrawn

  -- EUR19.2m class F due January 2022 (XS0303392400) downgraded
     to 'CCsf' from 'CCCsf'; withdrawn

  -- EUR15.4m class G due January 2022 (XS0303393986) downgraded
     to 'CCsf' from 'CCCsf'; withdrawn

The sharp downgrades reflect the default and ongoing
deterioration of the two largest loans, Countrywide Kaufland and
Project DD.  In the absence of adequate information, the rating
actions reflect conservative assumptions, with the RWE denoting
the approximation required in parts of the analysis.  Fitch took
into account the size of the loans, the empirical evidence
available on the relevant real estate markets and the uncertainty
over the servicer's, Royal Bank of Scotland (RBS;
'A'/Stable/'F1'), work-out strategies (in light of its duty of
care to the protection buyer rather than the issuer).

The ratings withdrawals reflect the insufficiency of ongoing
information, which prevents Fitch from being able to monitor
performance appropriately henceforth.  At closing, the servicing
agreement was entered into by RBS, acting as lender and servicer.
Whilst the latter has committed to a minimum level of reporting,
the issuer, not being party to the agreement, is not
contractually entitled to receive additional information.
Following a loan default, commentary on workout strategies,
updated collateral appraisals and tenancy profile are essential
to perform a rating analysis and the absence of these compromise
the rating process.

Countrywide and Project DD represent 35% and 21% of the aggregate
pool balance, respectively, and are both subject to credit event
notices.

Countrywide continues to breach its LTV and ICR covenants and has
failed to make senior interest and swap payments in full for the
last two interest payment dates.  As per a notice issued on 9
July 2012, these missed payments have caused an early termination
of the swap agreement, which resulted in EUR26m of breakage
costs.  As the servicer is apparently unable to receive updated
covenant information since July 2011, Fitch cannot comment on the
reason for the debt service shortfalls, but it can only assume
that net operating income has continued to decline since the last
reported figure of EUR20.8m in April 2011.  The likelihood of
further deterioration in this portfolio performance is a key
driver for the downgrade of the senior classes.

Following the failure to repay on its January 2012 maturity date,
the Project DD loan borrower was declared bankrupt.  From a
notice published on 6 July 2012, Fitch understands that the
properties and shares providing security for the loan were sold
by the insolvency administrator to Niam (a real estate private
equity firm).  No further details have been provided.  The assets
were last re-valued in July 2009, at EUR220.5m, for a resulting
loan-to-value ratio (LTV) of 91.1%. Since then, the reported ICR
has fallen to 1.28x (as at the last reported figure in January
2012) from 1.62x.  As a result of the sale, Fitch expects a loss
to be applied to the junior notes.

Of the remaining loans, the Project Magnum loan was extended
until January 2014, and is subject to an excess cash trap, while
the other loans appear to be performing in line with
expectations.


PERMANENT TSB: Set to Unveil Details of Restructuring Plan
----------------------------------------------------------
Charlie Weston at Independent.ie reports that loss-making
Permanent TSB is to close at least 20 branches, lay off between
150 and 200 people and split into a good bank/bad bank.

According to Independent.ie, Permanent TSB chief executive Jeremy
Masding told the Oireachtas Finance Committee the bank would
unveil details of its restructuring plan this week.

The restructuring plans involves splitting the lender into a good
bank of around EUR14 billion in loans, and a bad bank, or asset
management unit, with EUR12.5 billion in loans to be run down,
sold or moved to another institution, Independent.ie says.

Permanent TSB is formerly Irish Permanent and TSB bank.



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


DELTA BANK: S&P Affirms 'B/B' Counterparty Credit Ratings
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term and
'B' short-term counterparty credit ratings on Kazakhstan-based
JSC Delta Bank. The outlook is stable.

"At the same time, we affirmed the 'kzBB+' Kazakhstan national
scale rating. The affirmation reflects our view that Delta Bank's
financial profile remains in line with our previous expectations,
despite rapid loan growth. The bank's stand-alone credit profile
(SACP) remains unchanged at 'b'," S&P said.

"The bank has aggressively expanded its loan portfolio, and is
likely to continue to do so through the remainder of 2012,
resulting, in our view, in a lower risk-adjusted capital (RAC)
ratio," S&P said.

"The bank aims to expand lending to new sectors and improve its
asset diversity to reduce name and sector concentrations in the
loan portfolio. We note the short-term nature of the loan book
and the fact that the bank has materially lower exposure to the
weak real estate and construction sectors than its domestic
peers, which, in our view, reduces credit risk. In addition, over
the past three years, the bank has demonstrated better asset
quality than the Kazakh banking sector average," S&P said.

"Accordingly, we have revised our assessment of Delta Bank's
capital and earnings to 'adequate' from 'strong', and our
assessment of its risk position to 'adequate' from 'moderate',"
S&P said.

"Against gross loan book growth of almost 68.3% in 2011, the
bank's RAC ratio before diversification adjustments decreased to
8.5% from 11% over the year. In view of the bank's plan to expand
the lending book at about 50% annually, we forecast that the RAC
ratio will decrease further to 7.3%-8% over the next 24 months, a
level that nevertheless remains adequate, in our view. Our
forecast assumes that shareholders will provide additional
capital of KZT15 billion in 2012-2013. We observe gradually
improving earnings power at Delta Bank, leading to increasing
internal capital generation. The bank's revenue mix is dominated
by net interest income, which accounted for about 86% of
operating income in 2011. The bank aims to further diversify its
revenue sources by raising fee and commission income, which
currently accounts for 11% of operating income. Delta Bank's
profitability indicators have also been improving; as of end-2011
the bank reported a return on assets of 1.1% and a return on
equity of 5.8% (compared with 0.3% and 0.7%, respectively, a year
earlier). Further business growth and improved operating
efficiency will likely further improve the bank's financial
position," S&P said.

"We recognize the bank's track record of favorable asset quality
metrics in a domestic context. With nonperforming loans
accounting for 1.3% of the total loan portfolio at end-March
2012, Delta Bank demonstrated significantly better asset quality
than the Kazakh banking sector average (nonperforming loans at
31.8% at the same date). The bank's 20 biggest exposures account
for 86% of total loans, which is, however, greater than the
corresponding concentrations reported by its domestic peers. The
mainly short-term profile and demonstrably good performance of
the loan book partly offset risk associated with lending
concentrations. We take a positive view of the bank's decreasing
exposure to the volatile agribusiness sector that amounted to 42%
of the loan book at end-March 2012 (51% at end-2011). We note
that the bank did not lend to the real estate and construction
sectors before the financial crisis of 2007-2008 and that its
lending to these sectors is currently moderate at less than 14%
of the loan book. These loans were all granted after the crisis
and are performing well. Strong loan growth and diversification
of the loan book by name and sector are among the key goals of
the bank's new growth strategy," S&P said.

"The stable outlook reflects our expectation that Delta Bank's
business and financial profiles will remain stable over the next
12 months," S&P said.



===========
N O R W A Y
===========


EKSPORTFINANS ASA: S&P Cuts Rating on Subordinated Debt to 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services corrected its rating on the
subordinated debt of Norway-based Eksportfinans ASA
(BB+/Negative/B) by lowering it to 'BB-' from 'BB'.

"In a rating action on Eksportfinans on Feb. 15, 2012, we
incorrectly lowered the subordinated debt rating to 'BB', one
notch below the issuer credit rating (ICR). According to our
revised bank hybrid capital methodology, the rating on
Eksportfinans' subordinated debt should have been lowered to 'BB-
', two notches below the ICR, when the ICR on Eksportfinans was
lowered to speculative grade level," S&P said.

"The European Commission has proposed a framework for a bank
recovery and resolution regime, which in our view reduces to
negligible the likelihood that subordinated debt will benefit
from government support. Accordingly, we no longer expect
subordinated debt issued by Norwegian banks to receive any form
of government support given Norway's participation in the
European Economic Area. As a result, the ratings on
Eksportfinans' subordinated debt are now two notches below the
bank's 'bb+' stand-alone credit profile rather than the 'bb+'
ICR," S&P said.



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


EUROPEAN TRUST: Moody's Cuts National Scale Rating to 'Ba3.ru'
--------------------------------------------------------------
Moody's Interfax Rating Agency has downgraded the National Scale
Rating (NSR) of European Trust Bank to Ba3.ru from Ba1.ru. NSRs
carry no specific outlook.

Please see ratings tab on the issuer/entity page on moodys.com
for information on Global Scale Rating.

Ratings Rationale

Moody's Interfax said the downgrade of European Trust Bank's NSR
to Ba3.ru reflects (i) growing exposure to real-estate linked
assets on the bank's balance-sheet, (ii) operational losses by
the bank over three consecutive years, as interest and commission
income generated by the bank were not sufficient to cover the
bank's operational costs, and (iii) potential threats to the
bank's currently modest capitalization levels due to low
profitability and a high real-estate linked assets burden.

European Trust Bank started to invest in private real-estate
linked mutual funds in 2008-2009. During recent years, the bank
reported growing exposure to these instruments, which amounted to
almost 150% of the bank's Tier 1 capital as at year-end 2011 (up
from over 120% in 2010). Moreover, Moody's Interfax noted that
the above-mentioned change in earning asset composition has
suppressed the bank's recurring revenue generation capacity --
interest and commission income covered operating expenses at only
67% in 2011 (2010: 62%).

European Trust Bank's net profit was mainly supported by gains
from revaluation of investment properties parked in consolidated
mutual funds. The rating agency notes the risks associated with
the bank's ability to divest from these real-estate linked assets
and report realized gains due to the still challenging credit
conditions in Russia and low investors' appetite for the risky
real-estate segment.

Moody's Interfax explained that it has applied a number of
scenarios (central and adverse) to the bank's loan books and
real-estate linked assets, which revealed that European Trust
Bank's capital adequacy may rapidly decline as soon as there is
decline in real-estate prices because the bank's recurring
revenues are not sufficient to cover unexpected losses.

Moody's notes that the bank's rating is underpinned by its niche
franchise in mortgage origination, mid-sized corporate lending
and money transfer business operated under MIGOM brand, which
continue to support the bank's recurring revenue generation.

What Could Move The Ratings Up/Down

On the one hand, European Trust Bank's NSR could be upgraded if
the bank reduces its exposure to non-core assets, improves
profitability and capital metrics, and demonstrates a decline in
concentrations on both sides of its balance sheet. On the other
hand, further material deterioration in the bank's asset quality
and capitalization could result in a downgrade of the NSR.

Principal Methodologies

The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.

Domiciled in Moscow, Russia, European Trust Bank reported -- as
at year-end 2011 -- total assets of RUB15.7 billion (US$486
million) and net income of RUB35 million (US$1.1 million),
according to audited IFRS financials.

Moody's Interfax Rating Agency's National Scale Ratings (NSRs)
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".ru" for Russia.

About Moody's and Moody's Interfax

Moody's Interfax Rating Agency (MIRA) specializes in credit risk
analysis in Russia. MIRA is a joint-venture between Moody's
Investors Service, a leading provider of credit ratings, research
and analysis covering debt instruments and securities in the
global capital markets, and the Interfax Information Services
Group. Moody's Investors Service is a subsidiary of Moody's
Corporation (NYSE: MCO).


METALLOINVEST JSC: S&P Assigns 'BB-' Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to JSC Holding Company Metalloinvest, a
Russian metals and mining company. The outlook is positive.

"The rating is constrained by the company's exposure to cyclical
commodity markets, its sizable absolute debt resulting from its
plan to acquire the 20% of its own shares currently held by a
Russian bank, and still evolving corporate governance. These
constraints are partly offset by Metalloinvest's solid domestic
market position, high vertical integration, and low cost
position. Also supporting the ratings, in our view, are
Metalloinvest's operating results and margins, and its
demonstrated willingness to stick to a more conservative
financial policy," S&P said.

"We view Metalloinvest's business risk profile as 'fair' and its
financial risk profile as 'significant', under our criteria. In
2011, Metalloinvest reported adjusted EBITDA of US$3.7 billion
and adjusted debt of US$6.3 billion. Metalloinvest's ratio of
adjusted debt to EBITDA decreased to 1.7x in 2011 from 2.0x in
2010, and free operating cash flow notably increased to US$2.3
billion in 2011 from US$1.1 billion in 2010," S&P said.

"Metalloinvest is a pure commodity player, focusing on iron ore,
pellets, hot-briquetted iron (HBI), and commodity-grade steel.
Given increasing economic uncertainties and planned global
capacity additions, we expect some softening of iron ore prices,
and consequently steel prices, by 2013-2014," S&P said.

"Metalloinvest plans to acquire the 20% of its own stake held by
JSC VTB Bank (BBB/Stable/A-3; Russia national scale 'ruAAA'). VTB
became a financial investor late in 2011 after the company's
former shareholder Vasily Anisimov disposed of his shares. We
believe that for this purpose Metalloinvest has accumulated
US$2.5 billion in cash (partly through debt facilities) and
invested them in the short-term promissory notes from VTB,
maturing in December 2012, which would later be exchanged for
Metalloinvest's shares. This resulted in a notable increase in
gross debt to US$7 billion as of March 31, 2012, according to our
estimates. We nevertheless think that US$2.5 billion spending is
quite manageable for Metalloinvest, and that the company should
be able to retain a healthy leverage ratio, with adjusted debt to
EBITDA at slightly above 2.0x in 2012 and 2013," S&P said.

"The positive outlook reflects that we could raise the rating on
Metalloinvest in the next 12-18 months. This would depend on the
company further demonstrating its willingness and capacity to
adopt more conservative financial strategies than in the past,
retain its debt burden at a comfortable adjusted debt-to-EBITDA
ratio of about 2.0x, and refrain from substantial, unexpected,
and poorly grounded acquisitions and capital expenditures," S&P
said.


YAKUTSK FUEL: Fitch Assigns 'B-' LT Issuer Default Ratings
----------------------------------------------------------
Fitch Ratings has assigned Russia-based OJSC Yakutsk Fuel and
Energy Company (YATEC) 'B-' Long-term foreign and local currency
Issuer Default Ratings (IDR) and a 'B' Short-term foreign
currency IDR. Fitch has simultaneously assigned a National Long-
term rating of 'BB+(rus)'.  The Outlooks on the Long-term ratings
are Positive.

Fitch needs to understand YATEC's capital structure and the
position of the senior unsecured debt within this structure and
relative to the senior secured debt more in detail to be able to
assign a senior unsecured rating to YATEC's planned domestic
bonds.

The ratings reflect YATEC's dominant market position as the
largest gas producer and supplier in the Republic of Sakha
(Yakutiya) ('BB+'/Positive) accounting for 90% of gas supplies to
Yakutsk, the republic's capital. Fitch views the company's
operational profile as commensurate with the 'B' rating category.
As a hydrocarbons producer, the company operates on a relatively
small scale but its production size is comparable to that of a
number of similarly rated oil and gas peers, including Russia's
Alliance Oil Company Ltd ('B'/Stable) and Afren plc
('B'/Negative) operating in Africa and Iraq.  YATEC benefits from
a relatively low cost production compared to its Russian and
international counterparts.

At the same time, Fitch anticipates that YATEC's gross adjusted
leverage-related ratios will remain elevated in 2012-14 with FFO
adjusted leverage expected to stay well above 5x (4.6x in 2011),
primarily due to the financial guarantees provided by the company
to related parties and included by Fitch into adjusted debt
calculations as well as because of an intensive capex program.
The financial guarantees granted by YATEC to related parties
stood at RUB4.6 billion at end-2011, exceeding its gross revenue
and accounting for 76% of the gross adjusted indebtedness at end-
2011.  In addition, Fitch believes that the company's ambitious
capex of RUB8.9 billion (US$298 million) over 2012-16 planned for
the upgrade and expansion of the refining facilities and
expansion of the retail segment (among other things) is likely to
be partly debt funded.

YATEC is unfavorably positioned compared with its similarly rated
Russian/CIS and international oil and gas peers based on its
leverage metrics.  In Fitch's view, YATEC's high levels of gross
adjusted leverage coupled with its tight liquidity are more
commensurate with a 'B-' rating level.

The Positive Outlook reflects Fitch's expectations that the
company may be able to demonstrate a track record of limited
incurrence of off balance sheet obligations by not granting
additional financial guarantees once the outstanding ones expire.
This will enable the company to achieve material deleveraging in
the short term, which could support positive rating momentum.
Fitch views the company's unadjusted leverage metrics along with
its coverage ratios to be more commensurate with the mid 'B'
rating category.

In addition, Fitch believes that YATEC's business profile is
underpinned by its ability to generate solid and relatively
stable and predictable cash flow from operations from its gas
business.  The agency expects the regulated gas tariffs to
continue rising in the context of the domestic gas market
liberalization in Russia.  At the same time, the company's gas
sales volumes are likely to remain largely unchanged in the short
to medium term due to the regional market limitations.  As a
result, YATEC's gas operations are less exposed to the oil price
volatility in contrast to its pure oil peers.

Fitch also views positively YATEC's downstream integration, which
should enable the company to diversify its operations by both
product and geography and somewhat overcome the limitations
embedded in its gas business development.  As the only local
producer of motor fuels in the Republic of Sakha (Yakutiya),
YATEC is well placed to capitalize on the region's strong demand
for refined products and geographic location characterized by
remoteness and challenging accessibility resulting in high
transportation costs for imported fuels.  Another competitive
advantage of the local market is the resilience of the refined
products' prices to oil price fluctuations and negative trends on
the global refining market.  As a result of further expansion of
the downstream segment, Fitch expects an increase of its share in
YATEC's cash flow in the medium term.

What Could Trigger A Rating Action?
Positive: Future developments that may, individually or
collectively, lead to positive rating action include:

  -- No or limited amount of additional financial guarantees once
     the outstanding ones expire with a subsequent reduction of
     FFO gross adjusted leverage to well below 4.0x and closer to
     Fitch's forecast of unadjusted leverage metrics
  -- Successful implementation of the downstream expansion and
     product quality enhancement plans resulting in a higher
     contribution of the refining business to the company's
     EBITDA and cash flow

The current Rating Outlook is Positive. As a result, Fitch's
sensitivities do not currently anticipate developments with a
material likelihood, individually or collectively, of leading to
a rating downgrade. However, future developments that could lead
to the Outlook being revised to Stable include:

  -- Maintaining the elevated gross adjusted leverage ratios due
     to the provision of new/additional guarantees following the
     expiry of the current ones and/or incurrence of material
     financial debt



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


ABANKA VIPA: Moody's Downgrades Deposit Ratings to 'Caa1'
---------------------------------------------------------
Moody's Investors Service has downgraded the deposit ratings and
standalone credit assessments of three Slovenian banks:

- Nova Ljubljanska banka (NLB): deposit ratings downgraded to
   B2, from Ba2, and standalone credit assessment to caa1, from
   b2;

- Nova Kreditna banka Maribor (NKBM): deposit ratings downgraded
   to B3, from Ba2, and standalone credit assessment to caa1,
   from b1;

- Abanka Vipa (Abanka): deposit ratings downgraded to Caa1, from
   Ba3, and standalone credit assessment to caa2, from b2.

Moody's says that the downgrades reflect the deterioration of the
banks' standalone financial fundamentals, including rapid problem
loan formation and the erosion of their risk-absorption capacity,
as well as the rating agency's views of the willingness of the
government to provide support, balanced against a recognition of
the fiscal challenges of supporting multiple banks and the
government's preference to find private sources for
recapitalization. The outlook on all the banks' ratings is
negative.

These rating actions conclude the review for downgrade initiated
on April 25, 2012, which was prompted by Moody's assessment of
(i) challenges regarding the banks' ability to raise capital (ii)
the degree to which the banks can successfully stabilize the
formation of new problem loans; and (iii) the government's
ability and willingness to provide timely and sufficient support
to these banks, in case of need.

Ratings Rationale

Overall, the downgrades reflect the significantly increased
pressure on the banks' capital adequacy, which is driven by on-
going and severe asset-quality deterioration. The announcements
of recapitalization of NLB and Abanka in the second quarter of
2012 provided temporary relief only and the amounts raised, in
Moody's opinion, do not provide these two banks with a
sustainable financial position to absorb future losses. The
capital position of NKBM, the second largest bank, also
deteriorated in the first half of 2012. Although the bank
announced its intention to address this deterioration by disposal
of non-core assets, Moody's considers that replenishing capital
via asset sales remains challenging in the current market.
Overall, Moody's believes that all three banks will need to
deleverage further to alleviate solvency pressures, which may
impair the banks' franchise value.

-- Downgrade of the Standalone Credit Assessments

In Moody's view, the rated Slovenian banks have limited capacity
to address the challenges on the standalone basis as identified
in the review process:

  (i) The Slovenian banks, despite the recent capital raising
      activities of NLB and Abanka, remain the weakest
      capitalized banks in the CEE6 region (Czech Republic,
      Poland, Slovakia, Romania, Hungary and Slovenia);

(ii) Asset quality deterioration has not been reversed and
      provisioning coverage of non-performing loans remains one
      of the weakest in the CEE6 region;

(iii) Additional capital injections are expected to be required
      in all three banks to support their franchises and reverse
      deleveraging pressures;

(iv) Due to their limited capital base, and repayment of
      maturing wholesale funds, the rated Slovenian banks are
      having to contract lending activities. This affects their
      core revenue generation and Moody's expects the system to
      remain loss making for the second consecutive year in 2012.

Moody's therefore considers that all three banks' standalone
credit profiles have deteriorated, prompting the lowering of the
standalone credit assessment to caa1 for NLB and NKBM and caa2
for Abanka. In Moody's view, Abanka's standalone credit
assessment reflects the bank's relatively weaker financial
fundamentals, including higher leverage and loan book
concentrations, and weaker franchise value, as the third largest
bank in the country compared to its peers - NLB and NKBM (the two
largest banks in Slovenia).

-- Support Considerations in the Long-Term Deposit Ratings

The long-term deposit ratings of the three Slovenian banks
continue to incorporate one to two notches of uplift from their
standalone credit assessments, based on the rating agency's
assessment of the likelihood of systemic support from Slovenian
authorities, compared to two to three notches previously.

During the review period Moody's concluded that the Slovenian
government would only likely provide capital funds to these loss-
making banks as a last resort, which recognizes both the fiscal
challenges posed by providing systemic support to multiple banks
and government's preference to find private solutions to the
capitalization needs of these banks.

Although the government recently recapitalized the largest bank,
NLB, raising the bank's capital buffer just above the minimum
level specified by the European Banking Authority (EBA), Moody's
notes that this occurred only after the bank had explored all
other viable options.

Rationale for the Negative Outlook

The ratings remain on negative outlook given Moody's view that
the Slovenian banks' financial fundamentals and risk-absorption
capacity remain under pressure due to ongoing asset-quality
pressures, insufficiency of capital, deleveraging needs and
weakening core profitability.

What Could Move the Ratings Up/Down

Given the recent multi-notch downgrade of the long-term and
standalone ratings (and the negative outlook), upwards pressure
is unlikely to develop in the near term. However, in the medium
term, upwards pressure on the ratings could develop if the banks
(i) bring their capital buffers to comfortable and sustainable
levels to support their franchises; (ii) reverse the declining
asset-quality trends; and (iii) return to profitability.

Further downwards pressure on these ratings could develop if the
banks continue to post losses, further undermining their already
weak capitalization and funding positions. However, at the
current levels, the ratings are sufficient to absorb a reasonable
degree of performance volatility in the near term.

Full List of Rating Actions

The following ratings were downgraded:

Issuer: Nova Ljubljanska banka d.d.

  Banking financial strength rating to E (mapping to caa1) from
  E+ (mapping to b2)

  Long-term local- and foreign-currency deposit ratings to B2
  from Ba2, negative outlook

  Subordinate debt ratings to Caa2 from B3

  Junior subordinate debt rating to Caa3(hyb) from Caa1(hyb)

Issuer: Nova Kreditna banka Maribor

  Banking financial strength rating to E (mapping to caa1) from
  E+ (mapping to b1)

  Long-term local- and foreign-currency deposit ratings to B3
  from Ba2, negative outlook

  Junior subordinate debt ratings to Caa3(hyb) from B3(hyb)

  Backed junior subordinate debt ratings to Caa3(hyb) from
B3(hyb)

Issuer: Abanka Vipa d.d.

  Banking financial strength rating to E (mapping to caa2) from
  E+ (mapping to b2)

  Long-term local- and foreign-currency deposit ratings to Caa1
  from Ba3, negative outlook

  Preferred stock non-cumulative rating to Ca(hyb) from Caa2(hyb)

The following ratings were unaffected:

Issuer: Nova Ljubljanska banka d.d.

  Short-term local and foreign-currency deposit ratings of Non-
  prime

  Government-guaranteed senior unsecured bond/debenture ratings
  of A2 with negative outlook

Issuer: Nova Kreditna banka Maribor

  Short-term local and foreign-currency deposit ratings of
  Non-prime

Issuer: Abanka Vipa d.d.

  Short-term local and foreign-currency deposit ratings of
  Non-prime

  Government-guaranteed senior unsecured bond/debenture ratings
  of A2 with negative outlook

The principal methodology used in these ratings was Moody's
Consolidated Global Bank Rating Methodology published in June
2012. Please see the Credit Policy page on www.moodys.com for a
copy of this methodology.

Other Factors used in these ratings are described in Special
Comment Reassessment of Government Support Assumptions in
European Bank Subordinated Debt published in November 2011.



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


ABENGOA SA: Fitch Lowers Longterm Issuer Default Rating to 'B+'
---------------------------------------------------------------
Fitch Ratings has downgraded Abengoa, S.A.'s Long-term Issuer
Default Rating (IDR) to 'B+' and senior unsecured rating to
'B+'/'RR4' both from 'BB'.  The Outlook is Stable.

The downgrade follows the poor performance in the bioenergy
business in Q112 with EBITDA of EUR1 million and Fitch's
assumption that this segment will not see a meaningful recovery
until mid-2013.  Forward looking bioenergy market fundamentals
are driven by crush margins, the differential between the ethanol
sales price and the input cost of corn.  Crush margins are
currently at negative levels caused by a severe drought in the US
driving up forward corn prices.

Fitch expects that this situation will materially impact the mix
of Abengoa's cash flows at the corporate level.  Given the
anticipated discrete EBITDA contribution of the bioenergy
business (this segment still generated around 12% of FY11
corporate EBITDA), Abengoa's earnings are forecast by Fitch to be
mainly derived from its engineering & construction business
(E&C).  Fitch anticipates that Abengoa's leverage (adjusted net
debt to EBITDAR plus dividends) will be above 3.0x in the next
couple of years, which is no longer commensurate with a 'BB'
category rating, particularly in view of the earnings bias
towards E&C.

Fitch adjusts leverage calculations to reflect the non-recourse
nature of the concessions business by excluding related EBITDA
and project finance debt but including dividends.

Abengoa's non-recourse concession portfolio is largely focused on
solar projects and transmission lines with limited exposure to
bioenergy plants.  As a result, dividends up-streamed to the
corporate level are unlikely to be significantly impacted by the
negative outlook on bioenergy.

Abengoa has historically de-levered via asset sales and not
through organic growth.  Despite being an integral part of the
company's strategy, Fitch notes that this approach embeds a
higher risk to its business profile.  Although political support
for the solar industry remains in place, any weakening may create
uncertainty for potential buyers of such assets.

The E&C segment is performing in line with Fitch's expectations
with stable margins of around 10%.  Abengoa's backlog remains
relatively stable (around EUR7bn in March 2012) and represents
more than 20 months of average business.

The Stable Outlook is supported by Abengoa's E&C business' solid
performance with a healthy order book.  Fitch notes that the
Group remains significantly diversified from the Spanish economy,
representing around 27% of group revenue, followed by Brazil
(21%), the US (19%), the rest of Europe (15%) and Latin America
(11%).  Fitch does not expect a growing exposure to Spain in the
future, as group committed capex (March 2012) is focused on the
US (60%) and Latin America (29%).

Abengoa's liquidity position as of March 2012 was around EUR2.8
billion of cash at the corporate level which should be sufficient
to cover the financial needs until 2014. Abengoa S.A. extended
EUR1.6 billion of its syndicated loans beyond 2014, in May 2012.
Before this extension, the company was facing EUR0.5 billion of
maturities in July 2012 and EUR1.3bn in July 2013.  Fitch views
this transaction as positive in the short term as it improves
Abengoa's liquidity profile but refinancing risk may appear in
2014.

WHAT COULD TRIGGER A RATING ACTION?

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

  -- Significant reduction in corporate adjusted leverage on a
     sustained basis below 3x along with stable or increasing
     organic growth from recourse activities.

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

  -- Inability to keep leverage below 4x on a sustained basis
     and/or a significant decrease in the order book resulting in
     working capital outflows.


AYT CAIXA: Fitch Affirms 'Csf' Ratings on Two Note Classes
----------------------------------------------------------
Fitch Ratings has affirmed AyT Caixa Galicia Empresas I, F.T.A.'s
notes, as follows:

  -- EUR164.6m Class A (ISINES0384955003): affirmed at 'AA-sf';
     removed from Rating Watch Negative (RWN); Outlook Negative

  -- EUR41.6m Class B (ISIN ES0384955011): affirmed at 'Asf';
     removed from RWN; Outlook Stable

  -- EUR27.1m Class C (ISIN ES0384955029): affirmed at 'BBBsf';
     Outlook Stable

  -- EUR24.5m Class D (ISIN ES0384955037): affirmed at 'Bsf';
     Outlook Negative

  -- EUR5.0m Class E1 (ISIN ES0384955045): affirmed at 'Csf';
     Recovery Estimate is RE 0%

  -- EUR24.3m Class E2 (ISIN ES0384955052): affirmed at 'Csf'; RE
     0%

The affirmation is based on the portfolio's stable performance.
Loans more than 90 days in arrears represent 2.4% of the
portfolio balance, up from 1.7% in April 2011.  Obligor
concentration has increased slightly since the last review with
the ten largest obligors accounting for 11.8% of the portfolio
notional, up from 10.7% in April 2011.  The removal of the class
A and B notes from RWN follows the transfer of the treasury
account to Barclays Bank plc ('A'/Negative/'F1'), which is an
eligible counterparty according to the transaction documentation.

The rating of the class A notes and Outlook are limited by the
rating of the Kingdom of Spain.

The Negative Outlook on the class D notes reflects their
vulnerability to a front-loaded default timing distribution.  In
this scenario, defaults peak in the short term leading to a
deferral of class D interest payments.  Following a default in
the portfolio, a mismatch is created between the performing
collateral balance and the balance of the liabilities.  The
transaction relies on the reserve fund and excess spread to
amortize liabilities to eliminate the mismatch.  If defaults peak
early, the class D notes will be exposed to the risk that the
transaction is not able to capture enough excess spread to repay
all the accrued interest on the note.  Fitch believes the current
credit enhancement of the note provides a limited cushion against
this risk.

Fitch notes that the loan-by-loan data provided by the management
company for this review contained only a subset of the data
received at closing.  In particular, the data lacked obligor
information as well as details of any collateral underlying
secured loans in the portfolio.  Fitch was able to retrieve the
missing data points from the portfolio data used during the
initial rating based on the loan and borrower identifiers
provided.  Fitch was unable to extract missing obligor
information for approximately 5% of the portfolio, mainly due to
changes in the loan identifier.  When analyzing the portfolio,
Fitch modelled these loans as granted to a single obligor.  Fitch
considered loans with missing collateral valuation amounts
unsecured in its analysis.

AyT Caixa Galicia Empresas I, F.T.A. (the issuer) is a static
cash flow SME CLO originated by Caja de Ahorros de Galicia (Caixa
Galicia), now part of NCG Banco S.A. ('BB+'/Stable/'B').  At
closing, the issuer used the note proceeds to purchase a EUR874.9
million portfolio of secured and unsecured loans granted to
Spanish small and medium enterprises and self-employed
individuals. The transaction is managed by Ahorro y Titulizacion,
S.G.F.T., S.A.


BANKIA GROUP: Wants to Pay Pref. Shareholders Close to Face Value
-----------------------------------------------------------------
Esteban Duarte at Bloomberg News reports that Spain's Bankia
group wants to pay holders of EUR3 billion (US$3.6 billion) of
its preferred shares most of their money back, though not for
years to come.

According to Bloomberg, a person with direct knowledge of the
matter said that under the plan, Bankia's preferred shareholders
would receive new securities with a lower yield straight away,
plus cash or shares in future years.  The person said that the
payments would get close to the notes' full face value, though
spreading them over time means they're worth less, helping Spain
comply with EU rules limiting how much rescued banks can pay
creditors, Bloomberg relates.

The person, as cited by Bloomberg, said that Bankia group
proposed the compromise to the European Commission, which will
now negotiate with the Spanish government and central bank.

How much investors get under Bankia group's proposal will depend
on what its preferred shares are currently valued at, Bloomberg
says.  That's because EU banks rescued using taxpayer cash can't
repay preferreds or other junior debt at more than 10% higher
than where they're trading, Bloomberg notes.

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


* SPAIN: Urges EU Leaders to Accelerate Rescue Plan for Banks
-------------------------------------------------------------
BBC News reports that France and Spain have called for EU leaders
to accelerate a rescue plan for Spanish banks to calm fears of a
full international bailout.

Spain said there had been a "worrying delay" in executing plans
agreed by eurozone leaders last month, BBC relates.

The main provision would allow the future European bailout fund,
the ESM, to pour money directly into ailing banks, BBC discloses.

Under the deal, the Spanish government would avoid an
international rescue, BBC notes.

However, the creation of the fund has been hampered by
constitutional challenges in Germany which mean Berlin will not
be able to ratify the agreement before September 12, BBC states.

"The swift implementation of the financial assistance program is
essential to restore confidence and recreate conditions for
growth," BBC quotes French Finance Minister Pierre Moscovici and
Spanish Economy Minister Luis de Guindos as saying in a joint
statement after talks in Paris late on Wednesday.



=============
U K R A I N E
=============


* CITY OF KYIV: S&P Affirms 'B-' Long-term Issuer Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' long-term
issuer credit rating on the Ukrainian capital city of Kyiv. The
outlook is stable.

The rating on Kyiv reflects Ukraine's volatile and unsupportive
public finance system, which constrains the city's financial
flexibility. It also reflects Kyiv's high debt service, very weak
liquidity, and material debt burden, with associated foreign-
exchange risks.

"However, the city's position as the administrative and economic
center of Ukraine (B+/Negative/B; Ukraine national scale 'uaA+'),
and its fairly diversified economy, with wealth levels exceeding
the national average several-fold, support the rating," S&P said.

"Kyiv's fiscal flexibility remains severely constrained because
of very limited discretion over revenue sources and spending
policies, and what we regard as a weak, volatile, and underfunded
public finance system. By investing in the city's transport and
energy infrastructure to prepare for the Euro 2012 football
championship, the central government relaxed some of Kyiv's
urgent capital needs. However, Kyiv's material investment
requirements continue to constrain its spending flexibility," S&P
said.

"According to our base-case scenario, we expect that an economic
recovery should fuel tax revenue growth. Moreover, material
central government grants and cautious spending policies will
likely support the consolidation of the city's operating
financial performance in 2012-2013 and allow it to deliver
operating surpluses of 2%-4% of operating revenues. Following a
peak in investments related to Euro 2012, the city is likely to
somewhat reduce its deficits after capital accounts to 5% of
total revenues in 2012 and 2%-3% in 2013-2014 from 10% in 2011,"
S&P said.

"We also expect Kyiv's tax-supported debt -- which includes
direct debt and debt of government-related companies (including
loans from multilaterals) -- will continue to be exposed to
foreign exchange risks and stay above the significant level of
60% of operating revenues in 2012-1014. Apart from bonds, 20% of
direct debt will continue to consist of bank loans obtained to
settle energy payables. The city's new borrowing will mostly be
dedicated to tackling refinancing needs," S&P said.

"Kyiv continues to benefit from a diversified, recovering
economy, and is Ukraine's wealthiest local economy. The city's
personal income levels are likely to remain twice the national
average and the unemployment rate will continue to be the lowest
in Ukraine," S&P said.

"The stable outlook reflects our expectation that, despite
turbulent capital market conditions and a very weak cash
position, Kyiv will pass the peak of its debt in 2012 given its
positive refinancing track record. The outlook also factors in a
continued recovery of Kyiv's operating financial performance
through 2013, supported by a recovering economy and continued
operating support from the sovereign, which should allow the city
to avoid further debt accumulation," S&P said.



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


JJB SPORTS: To Seek Another Round of Rescue Funds
-------------------------------------------------
Graeme Evans at The Scotsman reports that JJB Sports is to seek
another round of rescue funds after seeing its turnaround hopes
derailed by poor summer trading.

According to the Scotsman, with headroom on lending terms
becoming increasingly tight, JJB has started talks with
"strategic partners" about the funds needed for overhauling
stores that it had thought would not be required until early next
year.

The move comes just three months after the chain landed
GBP20 million from American retailer Dick's Sporting Goods and a
further GBP10 million from existing shareholders, such as the
Bill and Melinda Gates Foundation, the Scotsman discloses.

Its plight has deteriorated in recent weeks after poor weather
and weak demand for replica kits resulted in a disappointing Euro
2012 for the Wigan-based retailer, the Scotsman notes.

Last year, JJB was forced to secure GBP96.5 million in funds from
major shareholders, as well as announce plans to close 43
unprofitable stores and place a further 46 on review in a bid to
stave off administration, the Scotsman recounts.

JJB Sports plc is a sports retailer supplying branded sports and
leisure clothing, footwear and accessories.


ROYAL BANK: Entry Into CSAs No Impact on Moody's Notes Rating
-------------------------------------------------------------
Moody's Investors Service has determined that the action of The
Royal Bank of Scotland plc ("RBS" or the "swap counterparty") to
put in place a Credit Support Annex (a "CSA") for each of the
credit default swap and the interest rate swap agreements will
not, in and of itself and at this time, result in a downgrade or
withdrawal of the current ratings of the notes (the "Notes")
issued by SDI Funding plc (the "Issuer"), a synthetic repackaged
transaction. Moody's opinion addresses only the credit impact of
the proposed action, and Moody's is not expressing any opinion as
to whether the action has, or could have, other non-credit
related effects that may have a detrimental impact on the
interests of noteholders and/or counterparties.

Moody's has assessed the proposal to put in place CSAs in which
the swap counterparty will cure the breach of the trigger
resulting from the downgrade of the swap counterparty to A3/P-2.
Moody's notes that even though under the implemented CSAs RBS is
obliged to post collateral amounts, these amounts may be equal to
zero. Moody's took into account for its assessment the additional
expected loss that would be imposed on the rated securities,
should the swap counterparty default on both the interest rate
and credit default swap, with no collateral being posted. Given
the gap between the current rating of the swap counterparty (A3)
and this of the rated Notes (Ba1), the rating of the securities
is not sensitive to this additional expected loss. Moody's notes
that any further downgrade of RBS may have a negative impact on
the rating of the notes issued by the Issuer.

The principal methodology used in this rating was Moody's
Approach to Rating Repackaged Securities published in April 2010.

Other methodologies and factors that may have been considered in
the process of rating this issuer can also be found in the Rating
Methodologies sub-directory on Moody's website.

Moody's will continue monitoring this rating. Any change in the
ratings will be publicly disseminated by Moody's through
appropriate media.


SALFORD CITY: Chairman Dismisses Administration Rumors
------------------------------------------------------
BBC News reports that Salford City Reds Chairman John Wilkinson
has dismissed rumors that the Super League club is close to going
into administration.

"We've lost some income streams but as a club we're stable . . .
. It's hard, but no, we're not (close to [administration])," Mr.
Wilkinson said, according to BBC News.

The report notes that the Reds were late paying off a tax bill in
April and released Chief Executive David Tarry in June.

BBC News notes that before moving from their former home at the
Willows to their new GBP26 million stadium in Barton at the start
of the season, the Reds had stated that they needed to average
around 8,000 fans at the Salford City Stadium.


SAMUEL COOKE: Police Probe Customers Amid Administration
--------------------------------------------------------
Insider Media Limited reports that two Burnley-based businesses
-- Samuel Cooke & Co and sister company Company Fuel Cards --
have fallen into administration as police conduct an
investigation into some of its customers.

Together, Samuel Cooke & Co and Fuel Cards employed 98 staff but
86 of those have been made redundant as a result of the
administration, with the remaining 12 staying on to help
administrators from KPMG in Manchester, according to Insider
Media Limited.

The report notes that the news comes just a few weeks after
Samuel Cooke & Co sold its Barnsley operation in order to
concentrate on its core base in the North West.

"The business suffered an unexpected loss in relation to a
specific group of customers that impaired asset value and, as a
result, placed the business under a significant cash strain. . .
. The directors reported this position to the police and it
remains under investigation. . . . This unfortunately had a
knock-on effect on its sister company, Company Fuel Cards.
Despite the best attempts of the directors, they have been unable
to find a solvent solution," the report quoted Associate partner
and joint administrator Paul Flint as saying.

The report notes that administrators have completed a sale of the
customer list of Company Fuel Cards to Direct Fuels, an
unconnected company based in Crewe.

The report says that Direct Fuels and its associated company,
Fuelplus (UK), will continue to supply fuel to customers of
Company Fuel Cards following completion of the sale and KPMG said
there would no disruption to normal services.

Administrators are now seeking buyers for the remaining assets of
Samuel Cooke & Co while they undertake a formal wind-down
process, the report adds.

Samuel Cooke & Co, which was founded in 1845, is an independent
distributor of fuels and lubricants to the residential and
commercial markets.  It sister business Company Fuel Cards is a
provider of fuel cards to commercial customers.


SANDWELL NO. 1: S&P Lowers Rating on Class E Notes to 'B-'
----------------------------------------------------------
Standard & Poor's Ratings Services has placed on CreditWatch
developing and CreditWatch negative its credit ratings on
Sandwell Commercial Finance No.1 PLC's class A and B notes. "At
the same time, we have affirmed our rating on the class C notes,
and lowered our ratings on the class D and E notes," S&P said.

"The rating actions follow our review of the loan portfolio,
transaction structural features, and transaction counterparty
risk," S&P said.

"Sandwell Commercial Finance No. 1 is a true-sale commercial
mortgage-backed securities (CMBS) transaction backed by 58 U.K.
loans. There are a variety of maturity dates with the last loan
maturing in 2027. The note legal final maturity date is in May
2039. The issuer has repaid 68% of the notes since closing and
has applied all proceeds to the class A notes. Only 17% of the
initial class A note balance remains outstanding and the class A
note credit enhancement level has increased to 57% from 36% at
closing. At the same time, we have seen credit deterioration in
the portfolio, and the reserve fund has been depleted--thus
exposing the junior classes of notes to higher default risk, in
our view," S&P said.

                           PORTFOLIO

"The portfolio currently comprises 58 loans, backed by retail
(35% by property value), office (34%), industrial (22%), and
other (9%) properties across England and Wales. Of the
properties, 83% are let to single tenants and 3% are vacant.
Approximately one in five loans benefits from rental income that
is predominantly generated from an investment-grade or a local-
government tenant," S&P said.

"The weighted-average loan-to-value (LTV) ratio is 83%. However,
13% (by balance) of the loans show an LTV ratio of between 85%
and 100%, and 16% of 100% or more. The reported LTV ratios are
calculated based on fairly recent valuations. Only 8% (by
reported value) of the valuations predate 2009," S&P said.

"The servicer has initiated enforcement proceedings by appointing
Law of Property Act receivers for five loans totaling GBP15.7
million (20% of the portfolio balance). Of the five loans, two
failed to repay at maturity, one failed to pay interest during
its term, and two defaulted following LTV ratio covenant
breaches," S&P said.

"Additionally, the servicer has completed enforcement proceedings
for three loans at a loss of GBP3.71 million (an implied loss
severity of 24%). Applying this loss severity to the five loans
that are currently undergoing enforcement proceedings would
result in a loss of GBP3.8 million, which would fully deplete the
reserve fund balance and 69% of the class E note balance. We
acknowledge, however, that the small number of loans with
completed enforcement proceedings may not be a representative
sample of the remaining portfolio," S&P said.

                        STRUCTURAL FEATURES

"The transaction benefits from a reserve fund, which the issuer
builds up from excess cash and uses to pay note interest and
principal shortfalls. While the reserve fund is required to be at
GBP3.75 million, it was fully depleted on the October 2011
interest payment date (IPD), and has since been replenished to
its current balance of GBP344,031. The amount of credit support
provided by the reserve fund is minimal and the fact that it has
recently been fully used signals a high risk of a short-to-
medium-term shortfall on the most junior, class E, notes," S&P
said.

"The issuer is exposed to interest-rate and basis risk, as the
notes pay interest over three-month LIBOR while the mortgages pay
interest at either a floating rate over three-month LIBOR (61% of
the portfolio balance), a fixed rate (27%), or a partially fixed
(12%) rate. Floating-rate loans are exposed to a greater default
risk in a scenario where rates rise. This may first impede their
ability to make scheduled amortization payments (if any) and then
also their ability to pay interest. There are 42 floating-rate
loans in this transaction. Partially fixed-rate loans pay a fixed
rate and revert to a floating rate at some point during their
term. There are six loans in this transaction that feature this
type of rate, and their floating-rate periods range from two
weeks to 11 years," S&P said.

The transaction has a sequential repayment structure (one class
of notes repaying at a time, starting with the most senior),
which is credit-positive for the more senior classes of notes and
has significantly increased credit enhancement levels. Assuming
that certain conditions are met, however, the note redemption can
switch to pro rata (all classes of notes repaying at the same
time, according to their proportion of the total outstanding
balance).  S&P said these conditions are:

    * There are no balances on any of the principal deficiency
      ledgers (currently, this is the case);

    * No liquidity facility drawings are outstanding (currently,
      this is the case);

    * The class A note credit enhancement level is higher than
      36.0% (currently, it is 56.5%);

    * The class B note credit enhancement level is higher than
      22.0% (currently, it is 34.7%);

    * The class C note credit enhancement level is higher than
      12.0% (currently, it is 19.1%);

    * The class D note credit enhancement level is higher than
      4.0% (currently, it is 6.7%);

    * Less than 4.0% of the portfolio balance is more than 2.5%
      in arrears (currently, 9.1% the portfolio balance is more
      than 2.5% in arrears); and

    * The reserve fund balance is at the required amount of
      GBP3.75 million (currently, it falls about GBP3.4 million
      short of that amount).

"Although the redemption profile could switch to pro rata in the
future, we consider that this would be accompanied by improved
portfolio performance and the availability of a greater reserve
fund balance, which would be credit-positive for the junior
classes of notes. Moreover, the transaction has never met all pro
rata conditions since closing," S&P said.

                          COUNTERPARTY RISK

The transaction is exposed to the default risk of certain
Counterparties -- including the account bank, GIC provider, and
swap counterparty -- all Barclays Bank PLC (A+/Negative/A-1).

"The servicer has made a stand-by drawing under the liquidity
facility, in accordance with the stand-by drawing mechanism in
the liquidity facility agreement. The stand-by drawing is now
held with the account bank--also Barclays Bank--and therefore,
there is more reliance on the account bank," S&P said.

"Under the account bank agreement and the GIC agreement, the
issuer has the right to replace the relevant counterparty if our
short-term rating on the counterparty falls below 'A-1'.
According to our 2012 counterparty criteria, this replacement
structure does not allow us to rate the notes in this transaction
higher than our long-term rating on Barclays Bank, which is
currently 'A+'. The servicer has informed us that it is currently
evaluating options for the situation. With this in mind, we have
placed on CreditWatch all of our ratings above that level," S&P
said.

                         RATING ACTIONS

"Absent counterparty risk, the class A notes would likely achieve
higher ratings. We have, however, not raised our rating on this
class of notes, due to counterparty risk exposure. Instead, we
have placed on CreditWatch developing for counterparty reasons
our 'AA+ (sf)' rating on the class A notes, pending the
servicer's review of the situation related to the account bank
and GIC provider. A potential resolution of the issue would
likely lead us to raise our rating on this class of notes, to
reflect the credit enhancement level," S&P said.

"The class B note credit enhancement level has improved
significantly, but not enough to withstand our stress scenario at
a rating level higher than 'AA'. Our rating on the class B notes
is higher than our rating on the account bank; this class of
notes is therefore exposed to the same counterparty risk as the
class A notes. A potential resolution of the issue would likely
lead us to affirm our rating on this class of notes. We have
therefore  placed on CreditWatch negative for counterparty
reasons our 'AA (sf)' rating on the class B notes, pending the
servicer's review of the situation," S&P said.

"The class C notes benefit from an increased credit enhancement
level, although to a lesser extent than the class A and B notes.
At the same time, our expected losses on the class D and E notes
could erode this improved credit enhancement level in the future.
We have therefore affirmed our 'BBB (sf)' rating on the class C
notes," S&P said.

"Based on our review, we expect the class E notes to suffer
principal losses. Similarly, the class D notes are vulnerable to
principal losses. We have therefore lowered to 'B (sf)' from 'BB
(sf)' our rating on the class D notes and to 'B- (sf)' from 'B
(sf)' our rating on the class E notes," S&P said.

         POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES

"We have taken the rating actions based on our criteria for
rating European CMBS. However, these criteria are under review,"
S&P said.

"As highlighted in the Nov. 8 Advance Notice Of Proposed Criteria
Change, our review may result in changes to the methodology and
assumptions we use when rating European CMBS, and consequently,
it may affect both new and outstanding ratings on European CMBS
transactions," S&P said.

"On June 4, we published a request for comment outlining our
proposed criteria changes for CMBS Global Property Evaluation
Methodology. The proposed criteria do not significantly change
Standard & Poor's longstanding approach to deriving property net
cash flow and value. We therefore anticipate limited impact for
European outstanding ratings when the updated CMBS Global
Property Evaluation Methodology criteria are finalized," S&P
said.

"However, because of its global scope, the proposed CMBS Global
Property Evaluation Methodology does not include certain market-
specific adjustments. An application of these criteria to
European transactions will therefore be published when we release
our updated rating criteria," S&P said.

"Until such time that we adopt new criteria for rating European
CMBS, we will continue to rate and monitor these transactions
using our existing criteria," S&P said.

            STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

          http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class               Rating
            To                    From

Sandwell Commercial Finance No. 1 PLC
GBP250 Million Commercial Mortgage-Backed Floating-Rate Notes

Rating Placed On CreditWatch Developing

A           AA+ (sf)/Watch Dev    AA+ (sf)

Rating Placed On CreditWatch Negative

B           AA (sf)/Watch Neg     AA (sf)

Rating Affirmed

C           BBB (sf)

Ratings Lowered

D           B (sf)                BB (sf)
E           B- (sf)               B (sf)


TIUTA INTERNATIONAL: Placed Into Administration
-----------------------------------------------
mortgagestrategy reports that Tiuta International, the holding
firm for Connaught Asset Management's GBP100 million series one
bridging loan fund, has been placed into administration.

The London-based firm was a former a subsidiary of UK bridging
provider Tiuta.

In the middle of June 2012, it was announced that the board of
Connaught was winding up its income fund series one and two, both
of which partly funded bridging lending Tiuta, according to
mortgagestrategy.

The report notes that series two was made up of GBP12 million in
securitized assets and GBP5 million in cash and series one in
GBP100 million in assets.  Connaught proposed at the time to
acquire the entire issued share capital of both, mortgagestrategy
the report notes.

mortgagestrategy says that as a result this meant that it also
bought up the two holding firms for the two funds.  The series
one fund's holding firm was Tiuta Development Finance and the
series two fund's holding firm was Tiuta International, the
report relays.

The report discloses that there was also a series three fund for
bridging loans on agricultural property, which is also in the
process of being wound down.

mortgagestrategy says that following the acquisition of Tiuta
International, Connaught's directors decided that with Tiuta
International the company holding and owning the loan book for
the series one fund it should be placed into administration to
wind-down the book.

BDO has been appointed the administrator for Tiuta International
and BDO business restructuring partner Danny Dartnaill said the
joint administrators would take all necessary steps to safeguard
the assets under their control, mortgagestrategy discloses.

Tiuta International is the holding firm for Connaught Asset
Management's GBP100 million series one bridging loan fund, has
been placed into administration.



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


* BOOK REVIEW: Abraham Zaleznik's Learning Leadership
-----------------------------------------------------
Author: Abraham Zaleznik
Publisher: Beard Books
Hardcover: 548 pages
Listprice: $34.95
Review by Henry Berry

The lesson in Learning Leadership -- The Abuse of Power in
Organizations is to "use power so that substance leads process."
This is done, says the author, by keeping the "content of work at
the center of communication."

The premise of this intriguing book is that many managers,
executives, and other business leaders allow "forms of
communication [to become] the center of work."  As a result,
misguided and counterproductive leadership and management
practices have settled into many organizations.  A culprit is the
popular "how-to" leadership manuals that offer simple,
superficial principles that only skim the surface of leadership.
Zaleznik argues that the primary way to get work done is to put
aside personal agendas and deal directly with those who are
involved in the work. With this emphasis on substance over
process, the concept of leadership lies not in techniques, but
personal qualities. The essential personal qualities of
leadership are captured by the "three C's" of competence,
character, and compassion.  The author then delves more deeply
into each of these C's.  We learn, for example, that the three
C's are not learned skills.  Competence entails "building one's
power base on talent."

Character and compassion are the two other qualities of a leader
that must be present before there is any talk about methods of
operation, lines of communication, definition of goals, structure
of a team, and the like.  There is more to character that the
common definition of the "quality of the person."  Character also
embraces, says the author, the "code of ethics that prevents the
corruption of power."  Compassion is defined as a "commitment to
use power for the benefit of others, where greed has no place."
This concept of a good leader is not idealized or unrealistic.
It takes into account human nature and the troubling behavior of
many leaders.  Of course, any position of leadership brings with
it temptations and the potential to abuse power.  Effective
leaders are those who "take responsibility for [their] own
neurotic proclivities," says the author.  They do this out of a
sense of the true purpose of leadership, which is communal
benefit.  The power holder will "avoid the treacheries of an
unreasonable sense of guilt, while recognizing the omnipresence
of unconscious motivation."

Zaleznik's definition of the essentials of leadership comes from
his study of notable (and sometime notorious) leaders.  Some
tales are cautionary.  The Fashion Shoe Company illustrates the
problems that can occur when a leader allows action to overcome
thought. The Brandon Corporation illustrates the opposite
leadership failing -- allowing thought to inhibit action.  Taken
together, the two examples suggest that balance is needed for
good leadership.  Andrew Carnegie exemplifies the struggle
between charisma and guilt that affects some leaders.  Frederick
Winslow Taylor is seen by the author as an obsessed leader.  From
his behavior in the Sicilian campaign in World War II, General
Patton is characterized as a leader who violated the code binding
leaders and those they lead.

With his training in psychoanalysis and his experience in the
business field, Zaleznik's leadership dissections and discussions
are instructive.  The reader will find Learning Leadership -- The
Abuse of Power in Organizations to be an engaging text on the
human qualities and frailties of leaders.

Abraham Zaleznik is emeritus Konosuke Matsushita Professor of
Leadership at the Harvard Business School.  He is also a
certified psychoanalyst.



                            *********

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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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,
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members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 240/629-3300.


                 * * * End of Transmission * * *