TCREUR_Public/120803.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, August 3, 2012, Vol. 13, No. 154



REPUBLIC OF CYPRUS: S&P Lowers Sovereign Credit Rating to 'BB'


VTB BANK: Fitch Affirms 'BB' Long-Term IDR; Outlook Stable


* GREECE: Moody's Says Banking System Outlook Remains Negative


ANDERSON VALLEY: S&P Lowers Rating on Class B-1 Notes to 'CC'


BOMI SA: Declared Bankrupt; Seeks Arrangement with Creditors


* PORTUGAL: Insolvency Cases Up 77% in First Quarter


* MANGISTAU REGION: Fitch Affirms 'BB+' LT Currency Ratings


GRIFOLS SA: S&P Raises Credit Rating to 'BB'; Outlook Stable

U N I T E D   K I N G D O M

B ROURKE: In Administration, Cuts 37 Jobs
COASTAL NETWORK: Board Puts Charity Into Administration
DEWEY & LEBOEUF: U.K. Administrators Propose Liquidation
DIXON SCAFFOLDING: In Administration on HRMC Arrears
HEIN GERICKE: In Administration on Going Economic Pressure

ITV PLC: Moody's Changes Outlook on 'Ba1' CFR to Positive
NORFOLK FRAMES: In Liquidation; 60 Jobs Affected
ROYAL BANK: Cabinet Ministers In Talks Over Full Nationalization
SOUTHERN CROSS: To Implement Company Voluntary Arrangements
TITAN EUROPE 2006-4: S&P Withdraws 'B-' Rating on Class A2 Notes

WHEEL OF LIVERPOOL: Goes Into Administration


* EUROPE: Moody's Says Supranational Ratings Resilient to Crisis
* EUROPE: Moody's Says ABS SME Performance Stable in June 2012
* BOOK REVIEW: Ralph H. Kilmann's Beyond the Quick Fix



REPUBLIC OF CYPRUS: S&P Lowers Sovereign Credit Rating to 'BB'
Standard & Poor's Ratings Services lowered its long-term sovereign
credit rating on the Republic of Cyprus to 'BB' from 'BB+'. "At
the same time, we affirmed our short-term sovereign credit rating
on Cyprus at 'B'," S&P said.

"We also placed the long-term rating on CreditWatch with negative
implications," S&P said.

"Our transfer and convertibility (T&C) assessment for Cyprus, as
for all European Economic and Monetary Union (eurozone) members,
is 'AAA', reflecting our view that the likelihood of the European
Central Bank restricting nonsovereign access to foreign currency
needed for debt service is extremely low," S&P said.

"We continue to hold the view that the government of Cyprus will
negotiate a financial support package to recapitalize its banking
system to meet the European Banking Association's regulatory
minimum. We also expect that, through a conditional lending
program, the Troika will provide Cyprus with a credible back-stop
to further bank losses, as well as budgetary support. We are
therefore fully factoring into our ratings on Cyprus our estimates
of a likely financial support package. However, even with official
assistance -- which we view as vital if Cyprus is to avoid default
-- we believe the government will remain in a weak fiscal position
due to a banking system that has been unable to cope without
government support as a result of its exposure to Greek
customers," S&P said.

"We estimate that Cyprus needs the equivalent of just over 60% of
its GDP to recapitalize its banks, absorb further bank losses, and
meet 2012-2014 borrowing requirements. In our base case, we
forecast an average increase in general government debt of over
10% of GDP in 2012 and 2013, peaking at 108% of GDP in 2013," S&P

"Excluding financial support, we estimate that the underlying
budgetary deficit (the fiscal balance excluding non-recurrent
spending to recapitalize the banks) will narrow to an average of
close to 3.5% of GDP between 2012 and 2014, from 6.3% in 2011. We
also take into account that part of the Cypriot banks'
recapitalization could occur via non-debt-increasing means, such
as increased holdings of private shareholders. However, even
excluding bank-recapitalization-related Troika support, we believe
the higher government debt burden related to budgetary support
considerably reduces the government's capacity to respond to any
new external shocks. Such shocks could include any further
economic deterioration in Greece (CCC/Stable/C), which could
deepen if Greece were to exit the eurozone," S&P said.

"After writing down holdings of Greek government debt, the Bank of
Cyprus and Cyprus Popular Bank--together representing nearly 40%
of domestic financial system assets--will require EUR2.3 billion
to recapitalize. The government has already acquired about EUR1.8
billion of shares in Cyprus Popular Bank after exchanging them for
a bond. Including our credit loss estimates on the remaining stock
of Greek private sector loans, which are equivalent to 120% of
Cyprus' GDP, we estimate the total capital requirements for the
banking system to be about EUR4.5 billion or 25% of GDP," S&P

"We also expect that the government will likely need about EUR6.6
billion or 36% of GDP to cover maturing debt and underlying
deficits during 2012-2014," S&P said.

"While we believe that lending rates from the Troika (or from
bilateral sources such as the Russian government) will be
relatively low, we expect that the increased burden of financing a
gross general government debt stock of 108% of GDP, and the
expected continuation of budgetary cuts will weigh significantly
on Cyprus' near-term growth prospects. This drag will come over
and above the negative impact on domestic demand from financial
sector deleveraging," S&P said.

"We project that Cyprus' real GDP growth will contract by 1.5%
this year and to at best stagnate during 2013. These estimates are
subject to the uncertainties inherent in projecting growth trends
in small economies," S&P said.

"We anticipate that at least some of Cyprus' financing needs will
be met by the European Financial Stability Facility (EFSF) or the
European Stability Mechanism (ESM). We understand that loans from
the ESM could be subject to an explicit understanding that they be
treated as senior to other outstanding commercial debt. If that
decision were taken, it would also weigh on our view of Cyprus'
creditworthiness," S&P said.

"We anticipate that official creditors will impose significant
conditionality on all loans to Cyprus. In line with recent
European Commission stability program proposals, we expect that
the most contentious discussions will center on public sector wage
cuts, changes to (or even the abolition of) the automatic wage
indexation mechanism, and potential modifications to Cyprus'
advantageous tax environment. Should the government implement the
conditionality fully, the implications would likely be positive
for Cyprus' creditworthiness as these would aim to reform public
finances and reduce large economic imbalances," S&P said.

"In 2012, the Cypriot government has issued about EUR600 million
in T-Bills. This step-up in reliance on shorter-term funding
increases rollover risk on the government's debt stock, in our
view," S&P said.

"We estimate the government's gross refinancing requirement at
EUR1.7 billion through to October 2012. Absent official funding,
we believe this amount will likely be financed by nonresident
banks and institutional investors. However, prolonged negotiations
about the conditionality of official assistance, or further
economic turmoil in Greece, could complicate Cyprus' financing
plans. That said, we believe EFSF or ESM funding could be
mobilized at short notice once an agreement is reached," S&P said.

"Cyprus is a small, services-based economy; its large domestic
banking system (assets equivalent to 800% of GDP) and developed
tourism sector have traditionally contributed significantly to
both growth and government revenues. We understand that recent
natural gas discoveries in Cypriot territorial waters could be
commercially exploited over the medium term. This could further
diversify the economy and be an additional valuable source of
government revenues and current account receipts. While the timing
of this remains uncertain, we have seen that such developments
typically take five to 10 years to have a meaningful impact on a
country's fiscal and external balance sheet," S&P said.


VTB BANK: Fitch Affirms 'BB' Long-Term IDR; Outlook Stable
Fitch Ratings has affirmed VTB Bank (Georgia)'s (VTBG) Long-term
Issuer Default Ratings (IDR) at 'BB' and Liberty Bank's (LB) Long-
term IDR at 'B', both with Stable Outlooks.  At the same time, the
agency has upgraded LB's Viability Rating (VR) to 'b' from 'b-'.

Rating Action Rationale: LIBERTY BANK'S VR and IDRS

The upgrade of LB's VR reflects the strengthening of the bank's
capitalization and the extended track record of sound performance
under new management since the takeover in 2009.

The affirmation of LB's Long-term IDR reflects the fact that it
was already 'B' as a result of the bank's 'B' Support Rating Floor
(SRF), and so is not impacted by the VR upgrade.  Following the
change in the VR, LB's Long-term IDR is now driven by its VR,
while still being underpinned at its current level by the SRF.

Rating Drivers: LIBERTY BANK'S VR and IDRS

LB's VR and IDRs reflect the bank's sound recent performance in
terms of both pre-impairment profitability and the quality of non-
legacy loans, its solid capitalization, currently comfortable
liquidity, the absence of debt funding, the predominantly local
currency balance sheet and good standards of management,
governance and disclosure.

At the same time, the ratings also consider inherent risks
in LB's rapid loan growth in the relatively high-risk operating
environment, the bank's still rather narrow franchise, significant
concentrations in the deposit base and some reliance on government
and municipal funding.

Capitalization has improved as a result of equity injections and
earnings retention, which have increased the bank's Fitch core
capital/risk-weighted assets ratio to 13.0% at end-Q112 (end-2010:
8.3%).  The regulatory capital ratios are significantly lower
(Tier 1 8.5%; total 10.9% at end-H112), mainly as a result of the
non-inclusion of fixed assets revaluations in capital.  The bank
is still reliant on a waiver from the National Bank of Georgia,
exempting it from minimum capital requirements (Tier 1 8%; total
12%) until September 2012.  Fitch believes retained earnings
should be sufficient to ensure regulatory compliance by the time
the waiver expires, but potential conversion of a GEL18.8m
contingent capital facility (subscribed mainly by LB's main
shareholder; mandatory conversion into ordinary shares in case of
non-compliance), would also strengthen capital ratios by
approximately 3ppts.

The bank's earning capacity is improving on the back of rapid net
loan growth (104% in 2011; 20% in H112), which has improved scale
efficiencies, reasonable asset quality, and a wide net interest
margin, which is supported by the bank's focus on mass retail
banking.  Non-performing loans in the non-legacy loan book were a
moderate 3.0% at end-Q112, while a large majority of exposures in
the pre-acquisition legacy book (10% of loans at end-Q112) were

Positively, and in contrast to other rated Georgian banks, LB's
funding is predominantly GEL-denominated (83% of H112 customer
deposits), as a result of which the majority of customer loans are
also issued in local currency.  LB's liquidity position is also
comfortable, with highly liquid assets (cash, interbank assets and
unpledged government securities) covering 32% of customer funding
at end-H112.  However, significant reliance on government and
municipal funding (54% of customer deposits at FYE11, including
some large balances), can make funding levels somewhat volatile.


LB's '4' Support Rating and 'B' SRF reflect Fitch's view of the
moderate probability of government support given the bank's
important social function of providing banking services in remote
parts of the country and its role in distributing pensions and
public sector salaries, as well as the track record of government
support in 2008-2009.

Rating Sensitivities: LIBERTY BANK

LB's VR and Long-term IDR could be upgraded if the bank builds a
further track record of sound performance and gradually
strengthens its franchise, while maintaining adequate levels of
capital and liquidity.  Further improvements in the Georgian
operating environment could also support an upgrade.

A marked deterioration in asset quality as the bank continues its
rapid growth, or significant negative shocks for the Georgian
economy, could result in downward pressure on the VR. However,
this would only result in a downgrade of the Long-term IDR if
Fitch also downgraded the bank's Support Rating and SRF.  The
latter is possible if there is a sovereign downgrade or a marked
reduction of LB's social importance/agency role, neither of which
are currently anticipated by Fitch.

Rating Action Rationale and Drivers: VTBG'S SUPPORT RATING & IDRs

The affirmation of VTBG's Long-term IDR at 'BB'/Stable, and its
Support Rating at '3', reflects Fitch's continued view of the
likelihood of shareholder support from its 96%-owner, JSC Bank VTB
(VTB, 'BBB'/Stable), the state-controlled, second-largest bank in
Russia.  In Fitch's view, VTB would have a high propensity to
support its Georgian subsidiary, given VTBG's small size, the
significant amount of funding VTBG receives from VTB, the track
record of capital support from its parent and the banks' common
branding.  At the same time, VTBG's ability to receive and utilize
parent support could be restricted by transfer and convertibility
restrictions, the risk of which is reflected in Georgia's Country
Ceiling ('BB').


VTBG's Long-term IDR could be upgraded or downgraded if there was
a similar change in Georgia's Country Ceiling and sovereign
ratings.  The rating could also be downgraded if there was a
multi-notch downgrade of VTB, or any clear indication that Russian
government support for VTB would not be allowed to flow through to
its foreign subsidiaries, neither of which is currently

Rating Action Rationale and Drivers: VTBG'S VR

The affirmation of VTBG's VR at 'b-' reflects the bank's small
size and modest franchise, concentrated balance sheet, limited
track record of reasonable credit underwriting and significant
proportion of foreign currency lending.  However, the rating also
considers the bank's return to profitability in 2011 as a result
of significantly lower impairment charges and an increase in
cheaper parent funding, and currently acceptable capitalization
and liquidity.

Rating Sensitivities: VTBG'S VR

An extended track record of better performance and credit
underwriting could result in an upgrade of the VR. Further
relapses in risk management and asset quality could result in a

LB was the fourth-largest bank in Georgia, holding 6.6% of system
assets at end-Q112.  At end-2011, it was 76.5% owned by Liberty
Capital LLC, with a majority of the remainder held by
institutional investors through the bank's unlisted GDR program.
VTBG held 3.4% of end-Q112 banking sector assets.

The rating actions are as follows:

JSC Liberty Bank:

  -- Long-term Foreign Currency IDR affirmed at 'B'; Outlook
  -- Short-term Foreign Currency IDR affirmed at 'B'
  -- Viability Rating: upgraded to 'b' from 'b-'
  -- Support Rating: affirmed at '4'
  -- Support Rating Floor: affirmed at 'B'

JSC VTB Bank (Georgia):

  -- Long-term Foreign Currency IDR affirmed at 'BB'; Outlook
  -- Short-term Foreign Currency IDR affirmed at 'B'
  -- Viability Rating: affirmed at 'b-'
  -- Support Rating: affirmed at '3'


* GREECE: Moody's Says Banking System Outlook Remains Negative
The outlook on Greece's banking system remains negative, says
Moody's Investors Service in a new Banking System Outlook
published on August 1. The negative outlook continues to reflect
the rating agency's view that the stressed operating environment -
- characterized by deep and prolonged economic contraction,
elevated sovereign credit risk and fragile depositor confidence --
will continue to erode banks' asset quality, capital,
profitability and funding.

The new report, entitled "Banking System Outlook: Greece", is now
available on Moody's subscribers can access this
report via the link provided at the end of this press release.

Following a -6.9% contraction in real GDP in 2011, Moody's expects
that real GDP will contract by -7% in 2012 and -2.3% in 2013,
exerting further pressure on the already stressed banking system.
Declining purchasing power and liquidity of banks' retail and
corporate customers -- exacerbated by reductions in government
expenditures and increasing unemployment -- will continue to erode
repayment capacity and constrain banks' business opportunities. In
addition, Moody's says that although it is not its central
scenario, the risk of Greece exiting the euro area remains
material. If it were to occur, an exit would trigger acute
economic dislocations and severe downside consequences for the
banking system.

Moody's believes that the Greek banking sector will remain loss-
making in 2012 and 2013, following record losses in 2011 mainly
due to the Greek government debt-exchange. Economic contraction
and asset deleveraging will lead to lower business volumes,
affecting top-line revenues, while high provisioning requirements
will erode bottom line results. Moody's says that the banks' cost-
cutting initiatives and profitable operations in South-Eastern
Europe will not be strong enough to reverse these trends.

The Greek government debt-exchange in March 2012 depleted the
banks' capital bases, rendering them economically insolvent and
generating immediate recapitalization needs of around EUR30
billion. Taking into account additional losses on banks' loan
books, Moody's central scenario indicates that total capital
requirements could reach up to EUR40-50 billion over the outlook
horizon (or around 20% of Greece's 2011 GDP). Moody's expects the
bulk of these capital funds to come from the EU and the IMF via a
EUR50 billion commitment to the Hellenic Financial Stability Fund
(HFSF), which has already disbursed EUR18 billion to the four
largest banks.

Moody's expects that Greek banks will remain locked-out of the
wholesale and interbank markets and continue to face further
deposit outflows over the coming 12-18 months. Private-sector
deposits declined by 36.7% (or by EUR87.2 billion) from their peak
in September 2009 through June 2012, with an acceleration of
deposit outflows in May and June 2012 due to the inconclusive
outcome of the first round of elections. Prolonged economic
contraction, fragile investor sentiment and susceptibility to
event risk all indicate that the risk of accelerated deposit
outflows remains high.

Declining deposits and restricted collateral availability for ECB
funding has also meant that banks have increased their emergency
liquidity assistance (ELA) reliance from Bank of Greece over the
last six months and Moody's expects that this trend will continue.
On 20 July, the ECB suspended the eligibility as collateral of
bonds issued or guaranteed by the Greek government, pending
Troika's progress report on Greece under the second support
program, increasing further Greek banks' ELA reliance.


ANDERSON VALLEY: S&P Lowers Rating on Class B-1 Notes to 'CC'
Standard & Poor's Ratings Services has lowered its credit ratings
on Anderson Valley CDO PLC's class S-1, S-2, and B-1 notes. "At
the same time, we have affirmed our ratings on the class A-1, A-2,
C-1, D-1, and Q combo notes," S&P said.

"The rating actions follow our assessment of the transaction's
performance since our previous review in October 2010, using
information from the latest trustee report dated June 20, 2012.
They reflect further credit events in the portfolio, which have
reduced the collateral available for repaying the notes," S&P

Anderson Valley I is a hybrid partially-funded cash flow
collateralized debt obligation (CDO) that closed in December 2006,
and is managed by BlackRock Inc. Its notes are denominated in U.S.
dollars. A related euro-denominated transaction, Anderson Valley
II CDO PLC, closed in February 2007. The transactions are similar
in concept, and both have diversified credit default swap (CDS)
reference portfolios comprising primarily investment-grade
corporate and sovereign entities.

"To help limit losses arising from credit events in the reference
portfolio, Anderson Valley CDO has a net losses event of default
trigger under the terms and conditions of its notes. An event of
default is triggered if net losses, as defined in the transaction
documents, equal or exceed 10%. At present, the CDS counterparty
has the right to enforce security following an event of default,
which would likely lead to liquidation of the cash collateral and
termination of all CDSs in the transaction," S&P said.

S&P said since its previous review:

-  The amount of net losses increased to 9.68% from 9.16%,
    thereby pushing closer to the 10% event of default trigger;

-  Its estimation of the amount available to withstand future
    losses and repay noteholders decreased to $190.6 million (of
    principal cash) from US$200.4 million (of bonds and principal

"The class S-1 and S-2 note balance combined is currently $112
million. Given our view on the increased likelihood of a net
losses event of default, and reduced credit enhancement, we have
lowered to 'B (sf)' from 'BB (sf)' our ratings on the class S-1
and S-2 notes," S&P said.

"Our analysis indicates that the class A-1 and A-2 notes remain
vulnerable to nonpayment, mainly due to the uncertainty regarding
the mark-to-market value of a CDS portfolio following an event of
default trigger breach. We have therefore  affirmed our 'CCC-
(sf)' rating on the class A-1 and A-2 notes," S&P said.

"Our analysis further indicates that the available collateral is
unlikely to be sufficient to repay the class B-1, C-1, and D-1
notes. We have therefore lowered to 'CC (sf)' our rating on the
class B-1 notes, and affirmed our 'CC (sf)' ratings on the class
C-1 and D-1 notes," S&P said.

"The class Q combo notes are combination notes benefiting from all
the cash flows from the class S-2 and A-2 notes, and 29.76% of the
cash flows from the subordinated notes. Our analysis indicates
that if the class S-2 and A-2 notes repay in full, the rated
balance of the class Q combo notes will be repaid even if no
further payments are made on the subordinated notes," S&P said.

"Although the rated balance of the class Q combo notes may be
repaid even if the class A-2 notes are not repaid in full, we
continue to consider it appropriate to link our rating on the
class Q combo notes to our rating on the class A-2 notes, given
the current reliance on cash flows from the class A-2 notes. We
have therefore affirmed our 'CCC- (sf)' rating on class Q combo
notes," S&P said.


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

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



Class                Rating
              To                From

Anderson Valley CDO PLC
US$438.6 Million Fixed- And Floating-Rate Notes

Ratings Lowered

S-1           B (sf)            BB (sf)
S-2           B (sf)            BB (sf)
B-1           CC (sf)           CCC- (sf)

Ratings Affirmed

A-1           CCC- (sf)
A-2           CCC- (sf)
C-1           CC (sf)
D-1           CC (sf)
Q combo       CCC- (sf)


BOMI SA: Declared Bankrupt; Seeks Arrangement with Creditors
Pawel Kozlowski at Bloomberg News reports that Bomi SA said a
court declared it bankrupt and allowed the company to seek
arrangement with creditors.

Bomi announced the court decision in a regulatory filing today.

Bomi SA is a Polish grocery chain.


* PORTUGAL: Insolvency Cases Up 77% in First Quarter
Henrique Almeida at Bloomberg News reports that the Justice
Ministry said the number of people and companies declared
insolvent by Portuguese courts rose 77% in the first quarter from
a year earlier.

According to Bloomberg, the ministry said in a report posted on
its Web site on Wednesday that insolvency cases increased to 3,900
in the first three months of the year from 2,206 cases.


* MANGISTAU REGION: Fitch Affirms 'BB+' LT Currency Ratings
Fitch Ratings has affirmed Kazakhstan's Mangistau Region's Long-
term foreign and local currency ratings at 'BB+', Short-term
foreign currency rating ay 'B' and National Long-term rating at
'AA-(kaz)'.  The Outlooks for the Long-term ratings are Stable.
The agency simultaneously has withdrawn all ratings.

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


GRIFOLS SA: S&P Raises Credit Rating to 'BB'; Outlook Stable
Standard & Poor's Ratings Services raised its long-term corporate
credit rating to 'BB' from 'BB-' on Spain-based global specialty
biopharmaceutical company Grifols S.A. The outlook is stable.

"At the same time, we raised our issue rating on Grifols' senior
secured bank debt to 'BB+' from 'BB'. The recovery rating on this
instrument remains unchanged at '2' (70%-90% recovery). We also
raised our issue rating on Grifols' unsecured notes to 'B+' from
'B'. The recovery rating on this instrument remains unchanged at
'6' (0%-10% recovery)," S&P said.

"The rating upgrade reflects our opinion that Grifols will
continue its solid performance thanks to persistent growing demand
from healthcare providers worldwide for blood plasma-derivative
products. This should lead to a reduction in its adjusted leverage
to close to 4x by the end of 2012, and sustainably below 4x
thereafter," S&P said.

Grifols' exposure to the Kingdom of Spain (BBB+/Negative/A-2)
causes only a modest drag on our rating assessment of the company.

S&P said it expects that demand for plasma-derivatives products
will continue to grow by 5%-7% a year, based on:

-- A rise in the number of patients as a result of increased
    access to medical care. Thus, plasma-based products will
    become available to people who previously needed the
    treatment but had no access to it. This is typically the case
    in emerging markets. S&P also expects to see more people in
    need of treatment, which typically reflects the aging
    population in mature markets.

-- New products applications and indications. In particular,
    plasma-based products are being studied for potential use in
    Alzheimer's disease.

"However, we expect pricing to remain flat after having stabilized
in the first half of 2012. This reflects our opinion that the
positive impact of growing demand will be offset by pressure
resulting from austerity measures and lower reimbursement rates,
particularly in Southern Europe," S&P said.

On this basis, S&P said, its forecast for Grifols for 2012 and
2013 encompasses these assumptions:

-- About 10% sales growth in 2012, and around 5% in 2013. This
    incorporates Grifols' strong results in the first half of
    2012, with pro forma revenues up 15%, but also includes S&P's
    opinion that market conditions thereafter will weaken as
    austerity measures toughen in Europe.

-- S&P's projections of a continued increase in profitability,
    to about 32.5% adjusted EBITDA margins in 2013. This will
    primarily stem from optimized capacity utilization following
    the June 2011 acquisition of Talecris Biotherapeutics Inc.

-- About EUR450 million of capex over the 2012-2016 period, as
    Grifols is investing in capacity to be able to address the
    growth in demand.

-- No dividend payment in 2012 and limited dividend payments
    thereafter of about 40% of net income.

-- Limited acquisitions.

-- No share buy-back activity.

-- Significant debt repayment of around EUR1 billion over the
    next three years, including moderate mandatory amortization
    of EUR292 million and additional voluntary prepayment,
    signifying Grifols' capacity and willingness to delever

"Under these assumptions, we project that leverage will reduce to
around 4x by the end of 2012 and below 4x thereafter on a
sustainable basis. The reduction in leverage also incorporates the
group's commitment to a disciplined financial policy following the
2011 transformational acquisition of U.S.-based Talecris," S&P

"The stable outlook reflects our opinion that Grifols will
continue its strong performance, leading to a reduction in its
adjusted debt leverage to close to 4x by the end of 2012 and below
4x on a sustainable basis thereafter. The stable outlook also
reflects our opinion that Grifols' cash balances, revolving credit
facility, and internally generated free cash flow will continue to
comfortably cover its upcoming moderate debt repayments, as
liquidity is drying up in Spain and access to external sources of
cash may be restrained," S&P said.

"The stable outlook does not factor in any significant change of
the sovereign rating on Spain. Despite our view of Grifols'
limited exposure to Spain, the rating on Grifols would need to be
reviewed should there be any material change in the economic and
political situation in Spain or in the sovereign rating on Spain,
where Grifols is headquartered," S&P said.

"An upgrade could occur if Grifols reduces it debt leverage to
close to 3x, through a combination of EBITDA growth and further
debt repayment. This could occur if Grifols' revenues increased by
10% and EBITDA margins improved to above 34% in 2013, compared
with our base-case assumptions of 5% and 32.5%," S&P said.

"Conversely, we could lower the rating if leverage does not
improve sustainably to below 4x in 2013. This could happen if the
austerity measures in Europe had a higher-than-expected impact or
if the synergies from the merger with Talecris were lower than
expected. We calculate that flat revenues growth and EBITDA
margins below 29% in 2013 would cause leverage to increase above
4x," S&P said.

"We could also lower the ratings if Grifols was to unexpectedly
deviate from its publicly stated financial policy of reducing net
reported leverage to below 2.5x by 2014, which could take the form
of material debt-financed acquisition or shareholder return," S&P

"Finally, though we consider it unlikely at this stage, given the
group's track record, we could downgrade the rating if performance
and cash generation were to deteriorate due to a product recall or
contamination, impairing the group's ability to reduce its
leverage," S&P said.

U N I T E D   K I N G D O M

B ROURKE: In Administration, Cuts 37 Jobs
Burnley Express reports that Burnley ironsmith, B Rourke and Co,
has gone into administration with the loss of 37 jobs.

The current economic climate and difficult trading conditions,
were given as reasons for the shock closure, according to Burnley

Business restructuring partners Patrick Lannagan and Tracey Pye
were appointed joint administrators over the company.

Burnley Express notes that the company is being wound down with 19
employees made redundant shortly after the joint administrators'
appointment.  The 18 remaining employees are expected to be made
redundant over the next couple of weeks as the operations of the
company are brought to a close, Burnley Express says.

"Unfortunately, the current economic climate and difficult trading
conditions significantly affected the business. . . . The company
had been seeking a buyer over recent weeks but, despite contact
with a significant number of potential acquirers, there was no
interest in the business as a going concern. . . . The joint
administrators are taking all necessary steps to mitigate losses
to all stakeholders and, going forward, will seek to maximize
recoveries for the benefit of all creditors," the report quoted
Patrick Lannagan, BDO business restructuring partner, as saying.

B Rourke and Co, based in Accrington Road, was a wrought iron
manufacturer that specialised in the production of iron gates and
railings for private and commercial clients in this country and

COASTAL NETWORK: Board Puts Charity Into Administration
EADT24 News reports that the board of trustees of CoastNet - The
Coastal Network, which has offices in Rowhedge, near Colchester,
and also in Devonport in Plymouth, has placed the charity into
administration.  The charity also had seven directors/trustees.

Its eight employees - three of which were directly based in
Colchester - have been made redundant, although there is a
possibility they could be offered future employment if talks on
the transfer of projects are fruitful, administrators said,
according to EADT24 News.

The report relates that a further three staff were based in
Plymouth, and the others between sites.

Lee De'ath and Richard Toone, insolvency practitioners at
accountancy firm Chantrey Vellacott DFK have been appointed joint

Mr. De'ath, partner at Chantrey Vellacott DFK's Colchester offices
on Balkerne Hill, confirmed that the administrators are in
discussions with a number of parties to try and transfer the
management of CoastNet's projects, the report discloses.

"CoastNet worked to support underprivileged communities through a
range of projects, from cricket on the beach to educational trips
away . . . .  Due to insufficient funding some of the projects are
now unfortunately unable to go ahead, although we are in talks
with more than one organization with the objective of transferring
some of the on-going projects," the report quoted Mr. De'ath as

CoastNet, which was established in 1996, was the only national
charity dedicated to sustainable development of the UK's coasts.
It worked on projects to help improve the quality of life of
underprivileged people living in coastal communities through
education, community and social enterprise.

DEWEY & LEBOEUF: U.K. Administrators Propose Liquidation
Karin Matussek and Jeremy Hodges at Bloomberg News report that
Dewey & LeBoeuf LLP's U.K. administrators proposed liquidating the
defunct law firm's British assets last week a day after the German
operations were put in insolvency proceedings by a Frankfurt

According to Bloomberg, administrators at BDO LLP said in a July
27 regulatory filing that the U.K. partnership, which includes the
London and Paris offices, should be moved into liquidation.

White & Case LLP attorney Andreas Kleinschmidt was appointed
preliminary administrator July 26 in Germany, Bloomberg says,
citing the country's online insolvency registry.

Dewey's U.S. partnership failed on May 28 after suffering a loss
of dozens of partners, Bloomberg relates.  It had drawn US$75
million of a US$100 million bank credit line when the loan came
due on April 16, according to people familiar with its finances,
Bloomberg discloses.

Mr. Kleinschmidt said he couldn't comment on the German case as he
had only recently been appointed to the role, Bloomberg notes.
He may be reached at:

          Andreas Kleinschmidt
          WHITE & CASE LLP
          Bockenheimer Landstrasse 20
          60323 Frankfurt am Main
          Tel: + 49 69 29994 0
          Fax: + 49 69 29994 1444

The BDO proposal filed at the U.K.'s Companies House said U.K.
unsecured creditors are owed GBP5.2 million (US$8.1 million),
according to Bloomberg.  The administrators, as cited by
Bloomberg, said that the amount includes a claim for around GBP3.8
million by HM Revenue & Customs for unpaid payroll and "other

Kate Moffat, a spokeswoman for BDO, declined to comment, according
to the report.

                      About Dewey & LeBoeuf

New York-based law firm Dewey & LeBoeuf LLP sought Chapter 11
bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the
wind-down of its operations.  The firm had struggled with high
debt and partner defections.  Dewey disclosed debt of US$245
million and assets of US$193 million in its chapter 11 filing late
evening on May 29, 2012.

Dewey & LeBoeuf was formed by the 2007 merger of Dewey Ballantine
LLP and LeBoeuf, Lamb, Greene & MacRae LLP.  At its peak, Dewey
employed about 2,000 people with 1,300 lawyers in 25 offices
across the globe.  When it filed for bankruptcy, only 150
employees were left to complete the wind-down of the business.

Dewey's offices in Hong Kong and Beijing are being wound down.
The partners of the separate partnership in England are in process
of winding down the business in London and Paris, and
administration proceedings in England were commenced May 28.  All
lawyers in the Madrid and Brussels offices have departed. Nearly
all of the lawyers and staff of the Frankfurt office have
departed, and the remaining personnel are preparing for the
closure.  The firm's office in Sao Paulo, Brazil, is being
prepared for closure and the liquidation of the firm's local
affiliate.  The partners of the firm in the Johannesburg office,
South Africa, are planning to wind down the practice.

The firm's ownership interest in its practice in Warsaw, Poland,
was sold to the firm of Greenberg Traurig PA on May 11 for
US$6 million.  The Pension benefit Guaranty Corp. took US$2
million of the proceeds as part of a settlement.

Judge Martin Glenn oversees the case.  Albert Togut, Esq., at
Togut, Segal & Segal LLP, represents the Debtor.  Epiq Bankruptcy
Solutions LLC serves as claims and notice agent.  The petition was
signed by Jonathan A. Mitchell, chief restructuring officer.

JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the
lenders under the Revolver Agreement, hired Kramer Levin Naftalis
& Frankel LLP.  JPMorgan, as Collateral Agent for the Revolver
Lenders and the Noteholders, hired FTI Consulting and Gulf
Atlantic Capital, as financial advisors.  The Noteholders hired
Bingham McCutchen LLP as counsel.

The U.S. Trustee formed two committees -- one to represent
unsecured creditors and the second to represent former Dewey
partners.  The Former Partners hired Tracy L. Klestadt, Esq., and
Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel.

Dewey & LeBoeuf has won Court authority to use lenders' cash
collateral through July 31, 2012.

DIXON SCAFFOLDING: In Administration on HRMC Arrears
Insider Media Limited reports that Dixon Scaffolding
(Transmission) Ltd entered administration after missing a 'Time to
Pay' agreement with Her Majesty's Revenue & Customs.

Administrators were appointed to Dixon Scaffolding (Transmission)
Ltd in early July, but managed to secure a pre-pack sale of the
business and assets, according to Insider Media Limited.  David
Hill, Peter Richard Dewey, and Julie Anne Palmer of Begbies
Traynor were called in on July 6, 2012.

Insider Media Limited notes that the administrators said two 'Time
to Pay' agreements had been entered into, but the company missed a
payment of GBP10,000.  The report relates that this led to the
agreements being cancelled.

HMRC then indicated a winding up petition would be issued if
payment was not made and Begbies Traynor was contacted by the
company to negotiate to avoid the action, the report relays.

The report notes that concerns from the company's bank, Royal Bank
of Scotland, led to delays in appointing an administrator and as
the bank had decided not to consent to the appointment, a going
concern sale was prevented.

A debenture was created in favor of directors Mike Dixon, Kathleen
Dixon and Tracey Dixon to create a fixed and floating charge over
the company's assets, the report discloses.

The report relates that on July 6, 2012, administrators from
Begbies Traynor were appointed and the business was sold.

The administrators said the secured creditors, who are the
directors, are likely to be repaid in full, the report says.  They
are owed GBP747,000 from the repayment of the bank's overdraft
facility, the report notes.

Insider Media Limited discloses that preferential creditors are
owed GBP63,503 and the administrators said since their
appointment, the employees' claims have been paid in full by
associated company Dixon Pentland Scaffolding Company.

The report says that it is estimated that GBP3.3 million is owed
to unsecured creditors.  Insider Media Limited notes that this
includes GBP1.8 million to HMRC, GBP464,542 to trade creditors,
GBP201,161 to connected companies and GBP11,801 to employees.

The administrators said there "may be sufficient funds to enable a
divided to be paid to the unsecured creditors," Insider Media
Limited adds.

Dixon Scaffolding (Transmission) was founded more than 40 years
ago and provided scaffolding to the energy and heavy industrial
sectors.  The business employed more than 100 staff.

HEIN GERICKE: In Administration on Going Economic Pressure
Stay On The Block reports that Motorcycle Trader is reporting that
Hein Gericke UK Ltd has been placed into administration.

The administrators (Moorfields Corporate Recovery) are looking to
sell the UK business, which currently operates 49 stores across
England, Wales, Scotland and Northern Ireland, and are asking
interested parties to make contact by August 6, according Stay On
The Block.

Simon Thomas, joint administrator at Moorfields Corporate
Recovery, said: "Hein Gericke (UK) Ltd is one of the leading
suppliers of motorcycle accessories in the UK and has a well-
established infrastructure in place that will allow a potential
buyer to focus on generating sales.  While the ongoing economic
pressures have affected sales in recent years I am confident the
business model has a lot of potential with a dedicated customer
base and staff who are obviously passionate about working for the

Hein Gericke opened his first shop in Germany in the 1970s and
within a few years, it had quickly become the largest motorcycle
dealership in Germany.  In 1987, when the business had grown
globally, Hein sold out.  The brand is now sold through its own
shops across Europe.

ITV PLC: Moody's Changes Outlook on 'Ba1' CFR to Positive
Moody's Investors Service has changed the outlook on ITV Plc's Ba1
corporate family rating (CFR), probability-of-default rating (PDR)
and senior unsecured debt ratings to positive from stable.

Moody's decision to change the rating outlook reflects: (i) ITV's
continued solid operating performance in H12012 with strong growth
in particular from non-advertising revenues (in particular ITV
Studios); (ii) ITV's steady progress towards executing its
strategic plan; (iii) broadly stable net advertising revenue
("NAR") trend expected for 2012 despite the difficult macro-
economic environment; (iv) company's solid credit metrics helped
by the recent debt buyback with Moody's adjusted Gross Debt/EBITDA
ratio improving to around 2.3x at the end of June 2012 on a last
twelve months (LTM) basis; and (v) ITV's solid liquidity profile.

Ratings Rationale

After growing by 4% year-on-year in 2011, ITV's revenues grew by
10% in H12012. ITV's performance in H12012 was largely helped by
non-NAR revenue growth of 26% driven by ITV Studios. Non
advertising revenues accounted for 32% of total external revenues
during the half year (versus 29% in 2011). ITV delivered double-
digit growth across all of its Studios businesses. This growth was
partly helped by the front-loaded delivery of some shows in H12012
as well as the inclusion of ITV Breakfast production (as Daybreak
is now produced by ITV Studios). Nevertheless, Moody's notes that
ITV expects its Studios business (excluding ITV Breakfast) to grow
organically by around 10% in 2012.

ITV Family NAR was also up 3% outperforming the TV advertising
market which was up by around 2% in H1 2012. However, ITV's family
share of viewing was down 1% year-on-year (at 23.0%). ITV1's share
of viewing declined by -3% in 2011 and ITV1's adult share of
commercial impacts ('SOCI') also declined by -5%. SOV and SOCI for
digital channels on the other hand was up by 5% and 3%
respectively. Moody's remains cautious on the macro-economic
outlook for the UK but expects the company to outperform the UK TV
advertising market in 2012, helped by its good on-screen
performance. In 2012, Moody's also expects ITV to stabilize its
SOV (and SOCI) for ITV1. Although ITV's net advertising revenues
(NAR) remain exposed to cyclical ups and downs, Moody's expects
the underlying NAR growth trend to remain on a broadly stable
trajectory, going forward.

In H12012, ITV repurchased GBP275 million nominal of its bonds
comprising EUR138 million 2014 bonds, GBP75 million of the 2015
bonds and GBP89 million of the 2017 bonds. This helped the company
reduce adjusted Gross Debt/ EBITDA to around 2.3x as of June 30,
2012 on a LTM basis (from 2.9x as of December 31, 2011). This
incorporates ITV's IAS 19 pension deficit, which increased to
GBP421 million (from GBP 390 million at the end of 2011).
Supported by its considerable cash balance, ITV had a net cash
position of GBP92 million at the end June 2012.

ITV has guided that it is likely to pay a total dividend of 2.4p
for 2012 and plans to continue with a 'progressive' dividend
policy. ITV expects its programming budget at GBP1 billion for
2012 as well as the GBP25 million of operating investment and
GBP70-80 million of capital expenditure for the year. After
delivering GBP20 million of incremental cost savings in 2011
(against its target of GBP15 million), the company is targeting
another GBP20 million in cost efficiency in 2012.

The company has made steady progress towards delivering its
strategic plan. Over time, ITV aspires to generate approximately
half of its revenues from non-television advertising. While in the
short term the company will remain focused at growing organically,
Moody's believes that the company may need to make add-on
acquisitions over the short to medium term to increase its
exposure to non-television advertising.

Moody's considers ITV's current liquidity profile to be very
solid. As of June 30, 2012, the company had cash and cash
equivalents of GBP577 million (including certain restricted and
unavailable cash amounts totaling GBP81 million). The company also
has a GBP125 million receivables facility (available to September
2015), which currently remains fully undrawn and is covenant-free.
In July 2012, after the bond tender, ITV entered into a GBP250
million revolving credit facility which also remains undrawn. The
facility matures in 3 years but is extendable for a further 2
years. It contains leverage and interest coverage covenants. In
Moody's view, ITV's cash on hand and internally generated cash
flows should be sufficient to cover the company's operational
needs in the near term, while giving it good flexibility to make

Notwithstanding ITV's strong operating performance and credit
metrics, the Ba1 CFR takes into consideration: (i) ITV's still
meaningful exposure to the cyclical nature of TV advertising
spending; (ii) the company's high operating leverage; (iii) the
execution risks associated with the implementation of the
remaining transformational plan; and (iv) absence of a publicly
articulated medium term financial policy and leverage target.

In Moody's view, ITV's ratings could be upgraded with: (i) a
continued stable underlying trend in ITV's NAR development in 2012
and beyond; (ii) ITV (at least) maintaining its family share of
viewing and ITV1's SOCI broadly stabilizing around the current
levels (around 26%); (iii) ongoing evidence of the company
gradually increasing its exposure to non-advertising revenues with
good growth potential; and (iv) Gross Adjusted Debt/ EBITDA
remaining at or below 2.5x on a sustained basis (including any
M&A), together with positive free cash flow generation (as defined
by Moody's -- post capex and dividends) -- supported by a publicly
articulated financial policy that is consistent with the above.

Downward pressure on ITV's ratings could result from a (i)
material deterioration in UK net advertising spending; (ii) ITV
Family of channels (in particular ITV1) losing significant share
of viewing and experiencing a material decline in its SOCI; (iii)
and company's Gross Debt/EBITDA (as calculated by Moody's)
materially weakening towards 3.5x on a sustained basis,
potentially through any material acquisition/s.

The principal methodology used in rating ITV plc was the Global
Broadcast and Advertising Related Industry Methodology published
in May 2012. Other methodologies used include Loss Given Default
for Speculative-Grade Non-Financial Companies in the U.S., Canada
and EMEA published in June 2009.

Headquartered in London, United Kingdom, ITV plc is the leading
commercial free-to-air broadcaster and producer of television

NORFOLK FRAMES: In Liquidation; 60 Jobs Affected
According to Norwich Evening News' Annabelle Dickson, hopes that
Norfolk Frames could be saved have been dashed as the company has
gone into liquidation with the loss of 60 jobs.

Norwich insolvency and business recovery specialist McTear,
Williams & Wood, which put the company into administration in
April, is now selling off the assets as part of the break up of
the business, Norwich Evening News discloses.  Partner Andrew
McTear said that it expected to pay a small dividend to unsecured
creditors, owed about GBP2 million, Norwich Evening News relates.

Mr. McTear added that Norfolk Frame's troubles had been triggered
by a major contract for the firm in the London area which had gone
wrong, Norwich Evening News notes.

When the company went into administration in April, it was hoped a
rescue plan could be put together.

Marsham-based window manufacturer Norfolk Frames, which had an
annual turnover of GBP7 million, specialized in the design,
manufacture and fitting of GRP doors and UPVC windows exclusively
into the social housing sector.

ROYAL BANK: Cabinet Ministers In Talks Over Full Nationalization
James Hurley and Nathalie Thomas at The Telegraph report that
Cabinet ministers are reported to have held discussions over a
full nationalization of Royal Bank of Scotland but talks are
understood to have stalled amid a lack of support from the

According to the Telegraph, Senior Treasury sources on Wednesday
played down a report in the Financial Times that the Government is
prepared to spend GBP5 billion buying the remaining 12% stake of
RBS that isn't already under state control.

The Government has been holding a series of talks over how to
boost bank lending to British businesses and some ministers are
believed to have raised a full takeover of RBS as one possible
option, the Telegraph notes.

The FT reported people close to RBS saying full nationalization
was unlikely. They questioned how the state could force the bank
to lend more to small businesses without putting "excessive risks"
on the taxpayer, the Telegraph notes.  According to the Telegraph,
full nationalization would mean the taxpayer taking on
responsibility for all the bank's toxic debt.

However, the government's current large stake means it is
effectively is in full control of the bank, the Telegraph says.

The Royal Bank of Scotland Group plc (NYSE:RBS) -- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks.  The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing.  On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO).  In July 2008, the company disposed of its entire
interest in Global Voice Group Ltd.

SOUTHERN CROSS: To Implement Company Voluntary Arrangements
Southern Cross Healthcare has announced that, following the
positive votes by creditors and members, the further conditions to
implementation of the Company Voluntary Arrangements (CVAs) under
Part I of the Insolvency Act 1986 have now been satisfied.

The CVA Supervisors are proceeding with the implementation of the
CVAs for all of the recently active entities in the Group.

Southern Cross Healthcare provides residential and nursing care
to more than 31,000 residents cared for by 45,000 staff in 750
locations.  It also operates homes that specialize in treating
people with dementia, mental health problems, and learning

TITAN EUROPE 2006-4: S&P Withdraws 'B-' Rating on Class A2 Notes
Standard & Poor's Ratings Services withdrew its credit ratings on
Titan Europe 2006-4 FS PLC's class A1 and A2 notes.

"The rating actions follow the full redemption of all of the
outstanding classes of notes on July 23, 2012, after the cash
manager confirmed that all of the classes of notes have fully
repaid," S&P said.

A portfolio of 408 health care facilities backed Titan Europe
2006-4 FS, a U.K. secured loan commercial mortgage-backed
securities transaction.


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:


Class               Ratings
            To                   From

Titan Europe 2006-4 FS PLC
GBP600 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Withdrawn

A1           NR                  A- (sf)
A2           NR                  B- (sf)

NR-Not rated.

WHEEL OF LIVERPOOL: Goes Into Administration
Liverpool Echo reports that the Wheel of Liverpool has gone into

News came that the city's major tourist attraction had ceased
turning earlier, according to Liverpool Echo.

The report notes that an employee of the administrators confirmed
the firm was in administration to the ECHO.

Wheel of Liverpool is located near the ECHO arena and at one time
sponsored by the Echo, opened in March 2010 with a stunning
firework show.


* EUROPE: Moody's Says Supranational Ratings Resilient to Crisis
Ratings on supranational institutions continue to be largely
resilient to the European sovereign debt crisis because their
credit quality incorporates factors beyond the strength of the
support of their member states, says Moody's Investors Service in
the new report "Supranational Ratings Resilient to European
Sovereign Debt Crisis." These factors include financial buffers
and their capacity to absorb and mitigate heightened risk.

Moody's says that the impact of the European debt crisis on an
individual supranational's credit quality also depends on the
diversity of the supranational's supporting governments, its
geographic focus and the variety of its lending and investment

The new Moody's report assesses the vulnerability of the nine
Moody's-rated supranationals that are most exposed to Europe,
given the characteristics of their ownership and loan portfolios.

To date, Moody's rating actions on the European sovereigns
contributed to only a single rating action on a supranational --
the negative outlook placed on the Aaa rating of the European
Financial Stability Facility (EFSF). All other European
supranationals have stable outlooks.

The two broad categories into which the supranationals generally
fall are different in their abilities to withstand a decline in
their members' ability to support them, says Moody's.

In general, the ratings of multilateral development banks (MDBs)
can withstand a deterioration in members' ability to give support
because they hold substantial capital and liquidity buffers, with
an earnings capacity to add to them over time.

"The MDB sector is typically characterized by a dedicated,
conservative, and active risk management function in support of
the financial buffers which would have to be depleted before the
MDB would need to rely on support from members," says Moody's in
the report.

The ratings of financing facilities, the second category, will not
be able to withstand as significant a deterioration in member
support as the MDBs, says Moody's, because they do not hold as
large financial buffers and generally have less active risk

The report is available at:

* EUROPE: Moody's Says ABS SME Performance Stable in June 2012
The performance of EMEA SME ABS transactions was relatively stable
in June 2012, according to the latest indices published by Moody's
Investors Service.

Cumulative default levels on the original balance after 36 months
remained weak in Greece (2.95%) in Italy (2.83%) and the UK
(2.56%). In Germany (0.90%), the Netherlands (0.89%) and
Switzerland (0.96%) they remained stable and lower than the other

The weak performance of UK defaults is mostly due to one
transaction, Goodwood Gold Plc. The performance of this
transaction also explains the drop in defaults 55 months after it
closed, at which point the transaction dropped out of the UK index
seasoning line. Italian cumulative defaults after 36 months
worsened to 2.83% in June 2012 from the 1.80% level recorded in
the November 2011 index report. UBI Finance 2 S.r.l. and Adriatico
Finance SME S.r.l., which were rated in 2011, are negatively
affecting the Italian index with defaults levels higher than other
Italian SME transactions.

Cumulative default levels after 36 months in Portugal have
improved, dropping to 1.02% in June 2012 from 4.54% level recorded
in the November 2011 index report. This improvement is due to new
transactions having entered the market and not yet having reported
defaults. In particular, the Lusitano SME No. 2 transaction had a
high original balance (EUR1,943 million) and has been repaid
before reporting any defaults.

While Moody's expects collateral performance to deteriorate in
Portugal, Italy and Spain, its outlook for Germany is stable.
Greece, Portugal, Italy and Spain are currently recession (see
"European ABS and RMBS Outlooks: June 2012 Update", June 2012).
While Germany will avoid recession, GDP growth will slow
substantially to 0.8% in 2012, from 3.1% in 2011. The rating
agency expects that company insolvencies will rise in Greece,
Portugal, Italy and Spain as a result of the recession. In
Germany, where bankruptcies fell by 5.9% in 2011 (Federal
Statistical Office, Germany), company insolvencies will remain
broadly flat in 2012. Moody's expects that house prices will fall
in Greece, Portugal, Italy and Spain, which will increase losses
on foreclosed SME loans that use property as collateral.

On 2 July 2012, Moody's downgraded to A3(sf) notes in 328 Spanish
ABS, RMBS and CLO transactions due to the decision to lower the
Spanish country ceiling. As such, the maximum rating that Moody's
will assign to a domestic Spanish issuer, including structured
finance transactions backed by Spanish receivables, is A3(sf). The
downgrades reflect the rating agency's downgrade of Spain's
government bond ratings to Baa3 from A3 on 13 June 2012 and the
initiation of a review for further downgrade. Currently 318
tranches in EMEA ABS SME transactions are on review for downgrade.

New issuances in the first half of 2012 decreased compared to the
second half of 2011. That said, six new transactions have been
11; Sandown GOLD 2012-1 PLC; Mercurius Funding NV/SA; Asti Finance
PMI S.r.l.; and Marche M5 S.r.l. As of June 2012, the total
outstanding pool balance of EMEA ABS SME transactions rated by
Moody's stood at EUR133,991 million compared to EUR138,763 million
in June 2011. The pool balance in the Italian market continued to
rise in June 2012 (compared to June 2011) and now stands at
EUR19,326 million and represents the second-largest market in
Spain (EUR49,317 million).

Moody's indices are published mid-month and can be found on in the Structured Finance sub-directory under the
Research & Ratings tab, under the Structured Indices sub-category
of Industry/Sector Research.

* BOOK REVIEW: Ralph H. Kilmann's Beyond the Quick Fix
Author: Ralph H. Kilmann
Publisher: Beard Books
Hardcover: 320 pages
Listprice: $34.95
Review by Henry Berry

Every few years, a new approach is offered for unleashing the full
potential of organized efforts.  These are the quick fixes to
which the title of this book refers.  The jargon of the quick fix
is familiar to any businessperson: decentralization, human
resources, restructuring, mission statement, corporate strategy,
corporate culture, and so on.  These terms are all limited in
scope or objective, and some are even irrelevant or misconceived
with regard to the overall well-being and purpose of a

With his extensive experience as a corporate consultant, author of
numerous articles, and professor in business studies, Kilmann
recognizes that each new idea for optimum performance and results
is germane to some area of a corporation.  However, he also
recognizes that each new idea inevitably falls short in bringing
positive change -- that is, a change that is spread throughout the
corporation and is lasting.  At best, when a corporation relies on
an alluring, and sometimes little more than fashionable, idea, it
is a wasteful distraction.  At worst, it can skew a corporate
organization and its operations, thereby allowing the
corporation's true problems or weaknesses to grow until they
become ruinous.  As the author puts it, "Essentially, it is not
the single approach of culture, strategy, or restructuring that is
inherently ineffective.  Rather, each is ineffective only if it is
applied by itself -- as a "quick fix"."

Kilmann tells corporate leaders how to break the cycle of
embracing a quick fix, discarding it after it proves ineffective,
and then turning to a newer and ostensibly better quick fix that
soon proves to be equally ineffective.  For a corporation to break
this self-defeating cycle, the author offers a five-track program.
The five tracks, or elements, of this program are corporate
culture, management skills, team-building, strategy-structure, and
reward system.  These elements are interrelated. The virtue of
Kilmann's multidimensional five-track program is that it addresses
a corporation in its entirety, not simply parts of it.

Kilmann's five tracks offer structural and operational aspects of
a corporation that executives and managers will find familiar in
their day-to-day leadership and strategic thinking.  Thus, the
author does not introduce any unfamiliar or radical perspectives
or ideas, but rather advises readers on how to get all parts of a
corporation involved in productive change by integrating the five
tracks into "a carefully designed sequence of action: one by one,
each track sets the stage for the next track."  Kilmann does more,
though, than bring all significant features of a modern
corporation together in a five-track program and demonstrate the
interrelation of its elements.  His singularly pertinent and
useful contribution is providing a sequence of steps to be
implemented with respect to each track so that a corporation
progresses toward its goals in an integrated way.

Beyond the Quick Fix is a manual for implementing and evaluating
the progress of a five-track program for corporate success.  The
book should be read by any corporate leader desiring to bring
change to his or her organization.

Ralph H. Kilmann has been connected with the University of
Pittsburgh for 30 years.  For a time, he was its George H. Love
Professor of Organization and Management at its Katz Graduate
School of Business.  Additionally, he is president of a firm
specializing in quantum transformations.


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

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  Go to order any title today.


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Ivy B. Magdadaro, Frauline S. Abangan and Peter
A. Chapman, Editors.

Copyright 2012.  All rights reserved.  ISSN 1529-2754.

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

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

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

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