TCREUR_Public/120829.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, August 29, 2012, Vol. 13, No. 172

                            Headlines



D E N M A R K

* DENMARK: Bank Resolution Unit Chairman to Resign


G E R M A N Y

Q-CELLS SE: Isofoton Obtains Approval to Lodge Bid
QUOKKA FINANCE: S&P Lowers Rating on Class E Notes to 'B-'


H U N G A R Y

* HUNGARY: Little Change on Construction Sector Liquidations


I R E L A N D

ALEXANDRIA CAPITAL: S&P Reinstates 'CCC-' Rating on A2-e1 Notes
AQUILAE CLO I: S&P Affirms 'CCC+' Rating on Class E Notes
TREASURY HOLDINGS: Liquidation to Affect 300 Jobs In Ireland


L I T H U A N I A

BANKAS SNORAS: Selects Investor to Buy Leasing Unit


N E T H E R L A N D S

CEVA GROUP: S&P Cuts Corp. Credit Rating to 'B-'; Outlook Stable


P O L A N D

PNI SP ZOO: Files for Bankruptcy Protection


P O R T U G A L

* PORTUGAL: May Seek Debt Reprieve Amid Deep Recession


R O M A N I A

EDY INTERNATIONAL: Files for Insolvency


U N I T E D   K I N G D O M

JAGUAR LAND: Moody's Upgrades CFR/PDR to 'Ba3'; Outlook Stable
MEDIA SHOP: Goes Into Administration, 20 Clients Affected
STERLINGMAX I: S&P Affirms 'CCC' Rating on Class A-2 Notes


X X X X X X X X

* S&P Takes Various Rating Actions on 22 European CDO Tranches


                            *********


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D E N M A R K
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* DENMARK: Bank Resolution Unit Chairman to Resign
--------------------------------------------------
Jonas Bergman at Bloomberg News reports that Denmark's state
agency for winding down insolvent banks, Financial Stability A/S,
said its Chairman Henning Kruse Petersen will step down.

According to Bloomberg, the agency said in an e-mailed statement
on Monday that he will be replaced by Deputy Chairman Jakob
Brogaard.



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G E R M A N Y
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Q-CELLS SE: Isofoton Obtains Approval to Lodge Bid
--------------------------------------------------
Stefan Nicola and Sangim Han at Bloomberg News report that
Hanwha Group's bid to buy the insolvent German manufacturer
Q-Cells SE drew a competing approach from Spanish power-plant
builder Isofoton SA that also wants to own what was once the
biggest solar-cell maker.

Bloomberg relates that Isofoton said an e-mailed statement it was
approved to bid for Q-Cells after Chief Executive Officer Angel
Luis Serrano met with the German company's insolvency
administrator Henning Schorisch on Monday.  Isofoton said Mr.
Serrano will present the bid, to be made with a U.S. investor it
didn't identify, to Q-Cells' creditors at a meeting today, Aug.
29, Bloomberg notes.

According to Bloomberg, Hanwha, South Korea's 10th largest
industrial group, said in an e-mailed statement on Monday that on
Sunday it signed a contract with Q-Cells to pay as much as
EUR40 million (US$50 million) for the Thalheim-based company's
headquarters, factories in Germany and Malaysia, as well as sales
units in the U.S., Australia and Japan.  Hanwha, as cited by
Bloomberg, said that the deal is subject to approval from
Q-Cells' creditors at their meeting.

Interest has increased in Q-Cells after its filing for protection
from creditors in April, Bloomberg recounts.

Hanwha, whose purchase contract signed with Mr. Schorisch on
Sunday will be reviewed by creditors, said it also plans to
assume EUR850 million Malaysian ringgit ($273 million) in debt
guaranteed by Q-Cells Malaysia, Bloomberg relates.

Q-Cells SE is a German solar-panel maker.



QUOKKA FINANCE: S&P Lowers Rating on Class E Notes to 'B-'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
all classes of notes in Quokka Finance PLC, and removed from
CreditWatch negative its rating on the class A notes.

Quokka Finance is a secured-loan commercial mortgage-backed
securities (CMBS) transaction backed by 11 loans. All of the
loans are cross-collateralized and cross-defaulted, and backed by
multifamily housing properties in Germany. The loans are
scheduled to mature in August 2013 and the notes mature three
years later in 2016.

The loans' original combined principal balance was EUR617.5
million; it has now amortized to EUR558.9 million. The issuer has
applied repayments predominantly to the class A notes, with a
small amount (less than 10%) applied pro rata to all of the
notes.

"The rating actions follow our assessment of declining cash flows
from the underlying properties, due to reduced net rents per
square meter and increased nonrecoverable expenses. They reflect
our view that refinance risk has increased, in the light of the
one year to maturity," S&P said.

                            PROPERTY PORTFOLIO

"The loans are secured by a portfolio of 25,418 residential,
commercial, parking, and other units. The properties were most
recently revalued in 2008 at an aggregate of EUR910.8 million
(EUR718 per square meter). There is regional concentration in the
city of Salzgitter, Lower Saxony, where 34.2% of the properties
(by rental income) are located," S&P said.

"The portfolio's cash flow has been declining since closing, and
vacancies have increased to 14.5% from 12.7% at closing. The 2.2%
increase in gross rental income has been exceeded by a steep
increase in operating expenses (expenses that can be recovered
from the tenants) of 30% since closing. We consider that energy
prices may be one of the key reasons for this increase," S&P
said.

"While gross rents per square meter saw a small increase of about
3.3% since closing, net rents per square meter have actually
reduced by nearly 10%, and the net rental income has reduced by
10.9%. Along with operating expenses, nonrecoverable expenses
have also increased by 38%. While they represented 32.7% of the
net rental income at closing, they now account for 50.6%, which
we consider a significant increase," S&P said.

"We note that maintenance expenses (which are nonrecoverable)
were about 60% higher in the most recent four quarters than the
average annual amount over the life of the transaction. In our
view, this is because borrowers are spending more on unit
upgrades to increase the occupancy rate and rental income per
unit, which have been declining since closing," S&P said.

"Consequently, net operating income (NOI) is down by 38% since
closing. However, the portfolio's external value has increased by
13.5% to EUR911 million, from EUR802 million at closing," S&P
said.

"Based on the NOI and the interest obligation, we calculate an
interest coverage ratio (ICR) of 1.03x and a debt service
coverage ratio (DSCR) of 0.80x," S&P said.

"The servicer, Capita Asset Services (London) Ltd., reports a
significantly higher DSCR of 3.62x in its Q2 2012 report. The
calculations in the report include the funds in the borrower
accounts (EUR10.3 million) and the equity that the sponsor, BGP
S.a.r.l. (the European joint venture vehicle of Babcock & Brown
Group and the GPT Group), injected in Q2 2012 (EUR1.25 million
for the previous four periods combined). We exclude these funds
from our ICR and DSCR calculations because they are not recurring
incomes," S&P said.

                          RATING ACTIONS

"We consider that the recent decline in cash flow may not be
reflected in the closing property valuation of 802 million, from
which the servicer has derived the current loan-to-value (LTV)
ratio of 69.6%. Given that the portfolio's value has likely
decreased, the loans may have more difficultly refinancing at
Maturity," S&P said.

"If the loans were to default, the parties would then have three
years to either refinance or sell the underlying properties in
order to repay the securitized debt," S&P said.

"Given this increased refinance risk, we have lowered our ratings
on the class A, B, C, and D notes by two notches each, and our
rating on the class E notes by three notches," S&P said.

"We have also removed our rating on the class A notes from
CreditWatch negative, where we had placed it on Jan. 31, 2012,
following our downgrade of all dependent counterparties in this
transaction. This is because our updated rating is now below the
highest ratings that the counterparties can support under our
2012 counterparty criteria," 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, 2012, 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 property-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

Quokka Finance PLC
EUR617.5 Million Secured Floating-Rate Notes

Rating Lowered and Removed From CreditWatch Negative

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

Ratings Lowered

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



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H U N G A R Y
=============


* HUNGARY: Little Change on Construction Sector Liquidations
------------------------------------------------------------
MTI-Econews reports that Opten, which compiles information on
companies, related on Monday that creditors and suppliers
launched liquidation procedures against 414 construction sector
companies in July, the number was similar to July 2011 or July
2010.

The number of voluntary liquidations started in July fell by a
third year-on-year to 209, MTI-Econews notes.



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I R E L A N D
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ALEXANDRIA CAPITAL: S&P Reinstates 'CCC-' Rating on A2-e1 Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services reinstated its 'CCC- (sf)'
credit rating on Alexandria Capital PLC's series 2006-4 class A2-
e1 notes, which is a European synthetic collateralized debt
obligation (CDO) tranche.

"On April 15, 2011, we withdrew in error the rating on the class
A2-e1 notes. One of the transaction participants recently
informed us that the notes were not repurchased in full, which
was our assumption at the time. Therefore, we have reinstated our
rating on the class A2-e1 notes at the rating level at which it
was withdrawn," S&P said.


AQUILAE CLO I: S&P Affirms 'CCC+' Rating on Class E Notes
---------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Aquilae CLO I PLC's class A, B, and C notes. "At the same time,
we have affirmed our ratings on the class D and E notes," S&P
said.

"According to the latest available trustee report dated July
2011, the class A notes have continued to amortize as the
transaction has entered its fourth year of amortization and the
weighted-average life has reduced to 2.5 years from 3.6 years. As
of the last payment date in June 2012, the class A principal
amount outstanding is EUR31.5 million or about 15% of its
original amount. This compares with about 70% when we last
reviewed the transaction in March 2011. Accordingly, the
aggregate collateral balance has dropped to EUR93 million from
EUR219 million," S&P said.

"Since our last review, we have therefore noticed a general
improvement in the results of the class A, B, C, and D par value
tests, which measure overcollateralization. However, the class E
par value test is now failing as it is more sensitive than other
classes to the relative increase of defaulted and 'CCC' rated
assets in the portfolio. None of the junior notes has deferred
any interest payments," S&P said.

"In our opinion, these developments have helped to increase the
credit enhancement available to all classes of notes," S&P said.

"However, at the same time, we have observed that the weighted-
average spread (WAS) generated by the portfolio has dropped to
2.54% from 3.04%, below the covenant of 2.65% specified in the
transaction documents. This is because relatively higher-paying
assets have amortized earlier than other assets. The weighted-
average recovery rates (WARRs) have also decreased as assets with
lower seniorities are left in the portfolio," S&P said.

"We have also noted an increase in the balance of assets that we
consider to be defaulted in our analysis (i.e., assets rated 'CC'
or 'D'). Defaulted assets currently account for about 10.3% of
the total portfolio balance, compared with about 1.7% at our last
review. This is mainly due to the general amortization of
performing assets as the increase only amounts to EUR150,000 in
nominal terms. Similarly, 'CCC' rated assets have increased to
18% from 7%--to EUR18.5 million from EUR16.1 million in nominal
terms," S&P said.

"Finally, we have continued to monitor the proportion of so-
called 'long-dated assets', i.e., assets that mature after June
18, 2015, the final maturity date of the rated notes. In our
view, this exposes the transaction to the non-credit-related risk
of loss of par, insofar as these assets need to be sold ahead of
their maturity date in order for the issuer to repay the rated
notes on time. Since our last review, we have noted a nominal
decrease in long-dated assets to EUR15.9 million from EUR26.2
million. More importantly, we consider EUR10.5 million of these
long-dated assets to be defaulted. We therefore treat and stress
these assets separately in our cash flow analysis, leaving only
EUR5.4 million of performing long-dated assets, or 6% of the
total performing balance. As we did in our previous review, we
reduced the par credit given to these assets. Our analysis has
shown that the class A, B, and C notes can withstand these
stresses at higher ratings than previously assigned," S&P said.

"Based on these developments, we therefore consider that the
levels of credit enhancement available to the class A, B, and C
notes are now consistent with higher ratings than previously
assigned. We have therefore raised our ratings on these classes
of notes. We note that the class C notes could potentially
achieve a higher rating than 'A+ (sf)', but is constrained at
this rating level by our largest obligor test, a supplemental
stress test in our 2009 corporate collateralized debt obligation
(CDO) criteria. This test assesses whether a CDO tranche has
sufficient credit enhancement (not counting excess spread) to
withstand specified combinations of underlying asset defaults,
with a flat recovery rate of 5%," S&P said.

"We believe the overall increase in credit enhancement available
to the class D and E notes, combined with the shorter weighted-
average life of the portfolio are currently sufficient to
mitigate the effect of the decrease in WAS and WARR--but only at
the rating levels currently assigned. We have therefore affirmed
our ratings on these classes of notes," S&P said.

Aquilae CLO I is a cash flow collateralized loan obligation (CLO)
transaction that securitizes loans to primarily European
speculative-grade corporate borrowers. The transaction closed in
December 2003 and is managed by Henderson Global Investors Ltd.

RATINGS LIST

Class               Rating
             To                 From

Aquilae CLO I PLC
EUR300 Million Floating-Rate Notes

Ratings Raised

A            AAA (sf)            AA (sf)
B            AA+ (sf)            A+ (sf)
C            A+ (sf)             BBB- (sf)

Ratings Affirmed

D            BB+ (sf)
E            CCC+ (sf)


TREASURY HOLDINGS: Liquidation to Affect 300 Jobs In Ireland
------------------------------------------------------------
Donal O'Donovan at Independent.ie reports that the High Court was
set to decide yesterday whether or not to pull the plug on
Treasury Holdings.

KBC Bank is seeking the appointment of a liquidator to shut the
company and sell off its assets over an unpaid debt of EUR70
million, Independent.ie discloses.  The debt is KBC's share of
EUR300 million of loans that financed the Spencer Dock
developments in Dublin's IFSC, Independent.ie says.  The bulk of
the debt is owed to National Asset Management Agency,
Independent.ie notes.

On Monday, lawyers for Treasury tried to block the move,
Independent.ie relates.  They want the court to delay making any
decision to allow time for negotiations between the parties and
US bank Morgan Stanley, which has offered more than EUR160
million for the properties secured on the debt, Independent.ie
states.

Treasury, as cited by Independent.ie, said liquidation would
jeopardize 300 jobs in Ireland, and 100 jobs abroad.

According to Independent.ie, they said that delaying liquidation
for a matter of weeks could save those jobs with no adverse
impact on KBC.

Lawyers for Treasury told Mr. Justice Brian McGovern that the
Morgan Stanley offer would mean the bank getting a better price
than the current market value for Treasury's assets,
Independent.ie notes.

Lyndon MacCann, for KBC, said the bank rejected that argument,
and that Treasury was "wholly insolvent" and should be wound up,
Independent.ie relates.

According to Independent.ie, he said his client was entitled to
take steps to get back money that was due to be repaid in January
2009.

KBC asked the court to appoint David Carson, an accountant with
Grant Thornton, as liquidator, Independent.ie discloses.

KBC said that if the skills of Treasury Holdings are valuable the
liquidator would be free to hire them to help wind up the
business, according to Independent.ie.

Lawyers for Treasury said KBC had not shown the court that it
would suffer if the application for an adjournment was allowed,
Independent.ie notes.  They said KBC would not improve its
recovery on the debt by liquidating Treasury, Independent.ie
relates.

Treasury Holdings is an Irish property developer.  The company
owns the Westin Hotel in Dublin and the Irish headquarters of
accounting firm PricewaterhouseCoopers.



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L I T H U A N I A
=================


BANKAS SNORAS: Selects Investor to Buy Leasing Unit
---------------------------------------------------
Milda Seputyte at Bloomberg News reports that The Bankas Snoras
AB's creditors committee picked an investor to buy the bank's
leasing unit and Finasta Bank AB.

Bloomberg relates that Aurelija Mazintiene, the chairwoman of the
creditors committee, said in an e-mailed statement on Friday the
creditors received bids from four potential investors.  The
investor will still require an approval from Lithuania's central
bank, Bloomberg states.  It said that the size of the transaction
and the buyer's name will be disclosed later, Bloomberg notes.

The central bank took over Snoras, once Lithuania's third-biggest
bank by deposits, in November after discovering that assets
reported on its balance sheet were missing, Bloomberg recounts.
The lender was declared bankrupt, Bloomberg discloses.

Bankas Snoras AB is Lithuania's fifth biggest lender.



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


CEVA GROUP: S&P Cuts Corp. Credit Rating to 'B-'; Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Netherlands-based integrated logistics
services provider CEVA Group PLC (CEVA) to 'B-' from 'B'. The
outlook is stable.

"At the same time, we lowered the issue rating on CEVA's senior
secured debt by two notches to 'B-' from 'B+' and removed it from
CreditWatch, where it was placed with negative implications on
May 11, 2012. We also revised downward the recovery rating on the
senior secured debt to '3' from '2' previously. The recovery
rating of '3' indicates our expectation of meaningful (50%-70%)
recovery prospects in the event of a payment default," S&P said.

"In addition, we lowered our issue ratings on CEVA's senior
unsecured notes, 1.5-lien secured notes, and junior-priority
senior secured notes to 'CCC+' from 'B-', which is one notch
lower than the long-term corporate credit rating on CEVA. The
recovery rating on these instruments remains unchanged at '5',
indicating our expectation of modest (10%-30%) recovery in the
event of a payment default," S&P said.



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P O L A N D
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PNI SP ZOO: Files for Bankruptcy Protection
-------------------------------------------
Maciej Martewicz at Bloomberg News reports that PNI Sp. z o.o.,
Budimex SA's rail-building unit filed for bankruptcy protection
from creditors.

Budimex, which bought PNI from the state railway for PLN225
million (US$69 million) last year, wrote down the unit's entire
value, citing unprofitable contracts signed before the
acquisition, Bloomberg relates.

According to Bloomberg, Budimex Chief Executive Officer Dariusz
Blocher told a news conference on Friday that the company had
helped PNI pay back PLN100 million of liabilities after taking it
over, adding Budimex will write down this amount in the second
half of the year.  He wouldn't say what PNI's debt currently was,
Bloomberg notes.

"We decided to file for PNI's bankruptcy because we couldn't risk
losing several hundred million zloty" more on the company,
Bloomberg quotes Mr. Blocher as saying.

PNI has no outstanding bank loans and its liabilities are mainly
to its subcontractors and employees, Bloomberg discloses.
Mr. Blocher, as cited by Bloomberg, said that the company is
seeking to renegotiate its unprofitable contracts.

Budimex SA is Poland's largest construction company.



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


* PORTUGAL: May Seek Debt Reprieve Amid Deep Recession
------------------------------------------------------
The News reports that analysts say dwindling tax revenues brought
on by record joblessness and deep recession will force Portugal
to seek breathing space, much like Greece has, on commitments to
EU-IMF creditors.

As things stand, the government, which had forecast an increase
in revenue of 2.6% this year, is set to miss this year's deficit
target of 4.5%, several analysts agreed, if it cannot come up
with an extra EUR2-EUR3 billion (US$2.5-3.8 billion).

According to The News, Paulo Mourao, economist at the University
of Minho, said the new data served to "lay the ground" for
"needed flexibility on Portugal's rescue program."  As part of
the program agreed in May 2011, in return for EUR78 billion in
rescue loans, to be paid out in tranches over several years,
Portugal has carried out deep budget cuts and pursued structural
reforms, The News discloses.

In the deal, which followed similar ones for Greece and Ireland,
Portugal agreed to bring its public deficit to the EU ceiling of
3% of output by 2013 after 4.5% in 2012, The News notes.

But a key plank of that effort, slashing 13th and 14th month
salary bonuses for civil servants and pensioners for three years,
was ruled unconstitutional and threw the center-right
government's austerity budget into disarray, The News states.

With the controversial measure now impossible, the government
must find an equivalent cut in spending, which analysts said was
all but impossible within the timeframe set by lenders, The News
relates.



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R O M A N I A
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EDY INTERNATIONAL: Files for Insolvency
---------------------------------------
Bogdan Alecu at Ziarul Financiar, citing a Hunedoara court,
reports that edy International Spedition has filed for insolvency
earlier this month.

edy International Spedition is a Romanian transport company.



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


JAGUAR LAND: Moody's Upgrades CFR/PDR to 'Ba3'; Outlook Stable
--------------------------------------------------------------
Moody's Investors Service has upgraded to Ba3 from B1 the
corporate family rating (CFR) and probability of default rating
(PDR) of Jaguar Land Rover PLC ("JLR") and to Ba3 from B1 the
ratings on JLR's senior unsecured notes. The outlook is stable.

Upgrades:

  Issuer: Jaguar Land Rover Plc

     Probability of Default Rating, Upgraded to Ba3 from B1

     Corporate Family Rating, Upgraded to Ba3 from B1

     Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3
     from B1

Ratings Rationale

"The rating action was triggered by the continuous improvement in
JLR's financial metrics over the past several quarters, as
reflected by its results for fiscal year 2011/12, which exceeded
our expectations," says Falk Frey, a Moody's Senior Vice
President and lead analyst for JLR. "JLR's better-than-expected
results were driven by strong demand for the company's sport
utility vehicles, or SUVs, and its successful broadening of its
model range, especially the introduction of the Range Rover
Evoque model," explains Mr. Frey. "As a result, JLR's operating
performance, cash flow generation and key credit metrics are
currently more commensurate with a higher rating category."

In fiscal year (FY) 2011/12 (ended March 31, 2012), JLR reported
a 27% increase in its retail volumes compared with the previous
year, to 305,859 vehicles. This increase was helped by the
successful launch of a new model, the Range Rover Evoque, but
also by generally strong demand for SUVs, especially in China,
which resulted in the company generating revenues of GBP13.5
billion, 37% higher than the previous year. These factors,
together with cost efficiency improvements and a favorable impact
from exchange rates, led to JLR reporting EBITDA of GBP2.0
billion (FY 2010/11: GBP1.5 billion) and cash flow from operating
activities of GBP2.1 billion (GBP1.5 billion) -- both figures
were above Moody's expectations.

In addition, despite a significant increase in its investment
activities in FY 2011/12, JLR reported positive free cash flow
(FCF) of about GBP1.0 billion before dividend payments. This
compares with Moody's initial expectation of FCF in the low
three-digit million range. JLR has announced a further increase
in its capital expenditure (capex) in FY 2012/13 to around GBP2.0
billion from GBP1.5 billion in FY 2011/12 to support further
growth, comply with emissions reduction requirements and start an
own-engine production facility. Given that Moody's expects this
level to rise further in the next two years, the rating agency
anticipates a slight deterioration in some of JLR's key financial
metrics, especially profit margins and FCF generation, which is
likely to turn slightly negative. Nonetheless, Moody's would
expect the majority of JLR's credit metrics to remain within the
current rating category.

In the first quarter of the current year, FY 2012/13, JLR
reported a further rise in its EBITDA compared with the same
period in the previous year, to GBP527 million from GBP362
million. The company also reported that its FCF remained
positive, at GBP106 million compared with GBP114 million in the
same period of the previous year.

JLR's Ba3 CFR positively reflects (1) the company's strong brand
names, which JLR is able to leverage when launching new products;
(2) moderate leverage, measured by adjusted debt/EBITDA, of 1.7x
in FY 2011/12, although this is most likely measured at the top
of the cycle; and (3) the commitment of its sole shareholder,
Tata Motors, to support JLR's product strategy, capex plan and
financial strategy, in line with previous practice.

However, JLR's CFR also reflects some key challenges, such as (1)
its small scale as a niche player, with a currently limited
product range and materially less financial strength than other
premium car manufacturers; (2) the cyclical nature of the
automotive industry, which can be exposed to big swings in
performance combined with high fixed costs; (3) JLR's strong
focus on the mature markets of Europe and North America (together
representing 60.6% of the company's unit sales) and on the
growing Chinese market (16.7% of unit sales); (4) challenges the
company faces in ensuring its model range meets the required
emissions and fuel consumption levels in Europe and the US; (5)
Moody's expectation that there will be a sizeable increase in
JLR's capex and research & development expenditure to fund the
company's ongoing expansion of its model range, which will burden
FCF generation in the short to medium term and lead to increasing
net debt levels; (6) the company's high foreign exchange rate
exposure; and (7) JLR's limited track record of growth and
profitability, and the fact that a substantial part of the
company's recent growth was mainly reliant on the successful
introduction of the Range Rover Evoque. In addition, Moody's
notes that the Jaguar brand has not recorded substantial growth
and remains a small niche business within the luxury car market.

Although Tata Motors has no legal obligation to back the debt of
JLR, Moody's nonetheless recognizes the support the owner
provided during the 2008-09 global financial crisis and its
conversion of GBP1.0 billion of preference shares (treated as
debt by Moody's) in JLR into equity (ordinary shares) in 2011. On
the back of strong net profit generated in FY 2011/12, JLR
decided to pay a GBP150 million dividend to its sole shareholder,
Tata Motors, which represents a further constraint on the rating.
Moody's notes that in the financial year ended (FYE) 31 March
2012, JLR generated nearly two-thirds of the consolidated
revenues and more than 70% of the consolidated reported EBITDA of
the Tata Motors Group, and thus is of considerable strategic
importance to its owner. Given the importance of JLR to Tata
Motors, Moody's does not anticipate JLR's rating being positioned
higher than that of Tata Motors, which is currently rated Ba3
with a stable outlook.

The stable outlook reflects JLR's currently strong credit metrics
for the Ba3 rating category. The outlook also reflects Moody's
expectation that, despite increasing capex and rising challenges
and risks from slowing economic growth in many of JLR's key
markets, the company will be able to sustain its current
operating performance and financial metrics.

What Could Change Ratings Up/Down

Moody's could consider upgrading JLR's ratings over the medium to
long term if the company demonstrates (1) an ability to retain
key credit metrics at current levels; and (2) the sustainability
of these metrics through cyclical swings in market demand and
product life cycles. Examples of metrics (all on a Moody's-
adjusted basis) that could trigger an upgrade, should they be
achieved over the cycle, are (1) an adjusted EBITA margin
materially above 5% on a sustainable basis; (2) at least break-
even FCF over the next two years followed by an FCF/debt ratio
above 5% thereafter; and (3) the maintenance of a solid liquidity
profile (Moody's considers that JLR currently has a well-spread
debt maturity profile, with the majority of debt coming due from
2018/2019 onwards).

Conversely, the ratings could come under pressure in the event of
a material deterioration in JLR's key credit metrics, as adjusted
by Moody's, reflected by (1) debt/EBITDA rising well above 2.0x;
(2) negative free cash flow generation exceeding GBP300 million
p.a. as well as (3) the company's EBITA margin falling below 5%
in FY 2012/13 and beyond from 8.2% in FY 2011/12.

Liquidity

JLR's liquidity profile as of March 31, 2012 is deemed to be
strong, covering the next 12-18 months of anticipated cash needs.
Moody's expects the company to have total cash sources of around
GBP4.8 billion, comprising readily available cash, funds from
operations and undrawn committed credit lines of more than GBP0.7
billion. In contrast, cash uses over the next 12 months amount to
GBP2.9 billion and include capex, debt repayments, cash for day-
to-day operations, working capital and dividend payout. Moody's
also anticipates sufficient headroom under the existing financial
covenants.

Principal Methodology

The principal methodology used in rating JLR was Moody's "Global
Automobile Manufacture Industry" rating methodology, published in
June 2011. 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 Gaydon, UK, Jaguar Land Rover PLC manufactures
and sells passenger vehicles under the Jaguar and Land Rover
brands and employs around 23,879 staff (as on June 12). In FYE 31
March 2012, JLR sold 314,433 units, generating revenues of
GBP13.5 billion. JLR is ultimately/indirectly 100% owned by Tata
Motors Ltd (rated Ba3), which is India's largest automobile
company, with a sales volume of 1,252,173 units and revenues of
around US$32.6 billion in FY 2011/12.


MEDIA SHOP: Goes Into Administration, 20 Clients Affected
---------------------------------------------------------
The Drum reports that Media Shop has recently confirmed that it
has gone into administration.

The administration is believed to affect more than 20 clients,
including Space NK, Florette and Fitness First, according to The
Drum.  The report relates that some clients have already been
moved to TCS Media whilst others are waiting to be assigned new
agencies.

The Drum notes that Chantry Vellacott DFK was appointed as the
administrator working to release the assets of the agency, which
has combined billings of around GBP20million.

The report discloses that Caroline McGrath, managing director The
Media Shop (Scotland) Ltd, told The Drum:  "In case
misinformation starts to spread, I can confirm that the demise of
The Media Shop Ltd is nothing to do with The Media Shop
(Scotland) Ltd and that the companies split from each other about
7 years ago.  There is no longer any connection between the
companies."

"I made all my clients aware of the situation three weeks ago so
that they would not get the wrong end of the stick," the report
quoted Ms. McGrath as saying.

London-based The Media Shop is a media planning and buying
agency.


STERLINGMAX I: S&P Affirms 'CCC' Rating on Class A-2 Notes
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
all of STERLINGMAX I MBS Ltd.'s classes of rated notes. "At the
same time, we have removed from CreditWatch negative our rating
on the class A-2 notes," S&P said.

"The rating actions follow our assessment of the transaction's
recent development. We received the issuer's event of default
notice dated Nov. 25, 2010, which stated that there were
insufficient proceeds to fully pay the interest due on the class
B notes on the November payment date. Consequently, on Dec. 3,
2010, we lowered our ratings on the class B notes to 'D (sf)',
the class A-1 notes to 'BBB (sf)', the class A-2 notes to 'CCC
(sf)', and the class C and D notes to 'CCC- (sf)'," S&P said.

"In November 2011, the class A-1 notes were fully redeemed and we
subsequently withdrew our rating on the class A-1 notes in
January 2012. Following our February 2012 updated criteria for
CDOs of structured finance securities, we placed the class A-2
notes on CreditWatch negative," S&P said.

"From our analysis, we have concluded that the defaulted interest
on the class B notes has not yet been repaid, and thus the class
B notes are still in interest default," S&P said.

"We understand that when an event of default has occurred and is
continuing, under the transaction documents, the holders of most
senior outstanding class of notes (class A-2 notes) may direct
the trustee to declare the notes immediately due and payable.
Following such direction, the trustee is likely, in our opinion,
to take steps to liquidate the collateral and distribute the
proceeds," S&P said.

"Although the class A-2 notes may suffer principal losses if the
transaction is liquidated, the class A-2 noteholders are the most
senior outstanding class and can decide whether to declare the
notes immediately due and payable. We have therefore affirmed and
removed from CreditWatch negative our 'CCC (sf)' rating on the
class A-2 notes," S&P said.

"We have affirmed our 'CCC- (sf)' ratings on the class C and D
notes to reflect our opinion of the risks that classes other than
the A-2 notes may experience -- namely principal losses if the
collateral is liquidated," S&P said.

STERLINGMAX I MBS is a cash flow collateralized debt obligation
(CDO) comprising mostly U.K. residential and commercial mortgage-
backed securities (RMBS and CMBS), and commercial asset-backed
securities (ABS).

               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

STERLINGMAX I MBS Ltd.
GBP157 Million Secured Floating-Rate And Residual Notes

Rating Affirmed and Removed From CreditWatch Negative

A-2        CCC (sf)         CCC (sf)/Watch Neg

Ratings Affirmed

B          D (sf)
C          CCC- (sf)
D          CCC- (sf)



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


* S&P Takes Various Rating Actions on 22 European CDO Tranches
---------------------------------------------------------------
After running its month-end SROC (synthetic rated
overcollateralization) figures, Standard & Poor's Ratings
Services  took various credit rating actions on 22 European
synthetic collateralized debt obligation (CDO) tranches.

Specifically, S&P has:

  -- placed on CreditWatch negative its ratings on four tranches;

  -- placed on CreditWatch positive its ratings on two tranches;

  -- removed from CreditWatch negative its rating on one tranche;
     and

  -- affirmed its ratings on 15 tranches.

For the full list of rating actions, see "European Synthetic CDO
CreditWatch Actions After Running July 2012 Month-End SROC
Figures."

"The SROC levels for the ratings placed on CreditWatch negative
fell below 100% during the July 2012 month-end run. We will
publish these SROC figures in the SROC report covering July 2012,
which is imminent. The Global SROC Report provides SROC and other
performance metrics on over 828 individual CDO tranches," S&P
said.

"For those transactions where our September 2009 CDO criteria are
not applicable, we have run our analysis on the CDO Evaluator 2.7
and CDO Evaluator 4.1 models," S&P said.

"For the transactions where our September 2009 CDO criteria
apply, we have run our analysis on CDO Evaluator 6.0. For
transactions run on this model, the ratings list includes the top
obligor and industry test SROCs at the current rating level. The
'largest obligor default test' assesses whether a CDO tranche has
sufficient credit enhancement to withstand specified combinations
of underlying asset defaults based on the ratings on the assets,
with a flat recovery of 5%. The 'largest industry default test'
assesses whether a CDO tranche rated 'AAA' to 'AA-' has
sufficient credit enhancement to withstand the default of all
obligors in the transaction's largest industry, with a flat
recovery of 17%," S&P said.

"In addition, we have affirmed our ratings on the tranches for
which credit enhancement is, in our opinion, still at a level
consistent with their current ratings," S&P said.

             STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

           http://standardandpoorsdisclosure-17g7.com


                            *********

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,
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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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                 * * * End of Transmission * * *