TCREUR_Public/120831.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 31, 2012, Vol. 13, No. 174

                            Headlines



G E R M A N Y

LANDESBANK BERLIN: Moody's Assigns Rating to Covered Bonds
Q-CELLS SE: Creditors Back Hanwha's Takeover Bid


I R E L A N D

EPIC DRUMMOND: S&P Cuts Ratings on Three Note Classes to 'CCC-'
FLEET STREET: Fitch Affirms 'CCsf' Rating on Class D Notes
FLEET STREET: Fitch Lowers Rating on Class B Notes to 'CCCsf'
KBC BANK: S&P Continues to Base Ratings on Bank's 'bb' Anchor
RMF EURO III: S&P Affirms 'BB' Rating on Class V Notes

TARGET EXPRESS: Put In Liquidation Amid Worker Protests


L U X E M B O U R G

ARDAGH PACKAGING: S&P Cuts Long-Term Corp. Credit Rating to 'B'
KLOECKNER PENTAPLAST: Moody's Rates Bond Issuance 'Caa1'


N E T H E R L A N D S

FAB CBO 2005-1: S&P Downgrades Rating on Class A2 Notes to 'BB+'


S P A I N

FTPYME TDA: Fitch Affirms 'BB-' Rating on Class 3SA Notes


S W I T Z E R L A N D

TAURUS CMBS: S&P Lowers Rating on Class C Notes to 'CCC-'


U N I T E D   K I N G D O M

BL SUPERSTORES: S&P Raises Rating on Class C1 Bonds From 'BB'
COBRA UK: In Administration; 18 Jobs Affected
CORAL INNS: Enters Into Administration
DAWSON INTERNATIONAL: Scottish Mill Bid Deadline Passes
FINDLAY CLARK: Put into Liquidation; 31 Workers Lose Job

JJB SPORTS: Put Up for Sale; Shares May Be Worthless
PROMINENT CMBS 2: S&P Cuts Ratings on 3 Note Classes to 'CCC-'
TITAN EUROPE 2007-3: S&P Cuts Rating on Class A2 Notes to 'CCC-'


X X X X X X X X

* Moody's Says Euro Area Economic Shocks to Hit CEE & CIS States
* BOOK REVIEW: John Hood's The Heroic Enterprise


                            *********


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


LANDESBANK BERLIN: Moody's Assigns Rating to Covered Bonds
----------------------------------------------------------
Moody's Investors Service has assigned a provisional long-term
rating of (P)Aaa to the Series 1-2012 mortgage covered bonds to
be issued by Landesbank Berlin AG (LBB) issued under its Daheim
program.

Ratings Rationale

A covered bond benefits from (i) the issuer's promise to pay
interest and principal on the bonds; and (ii) if the issuer
defaults, the economic benefit of a collateral pool (the cover
pool). The ratings therefore take into account the following
factors:

  (1) The credit strength of LBB (A1, deposits; D+/baa3, Prime-1,
      stable).

  (2) The value of the cover pool in the event of issuer default.
      The stressed level of losses modelled in event of issuer
      default (cover pool losses) for this transaction is 28.1%
      on a weighted average basis.

The analysis of the value of the cover pool considered:

- 2.1) The credit quality of the assets backing the covered
bonds. The covered bonds are backed by German residential
mortgage loans originated by two German Sparkassen. The weighted
average collateral score of the cover pools is 16.9%.

- 2.2) The structure of the program. Notable aspects of the
structure include a built-in extension to the maturity of the
notes (thus mitigating refinancing risk) and, the matching of the
maturities of the pledged secured loan with those of the notes
(thus mitigating market and refinancing risks).

- 2.3) The exposure to interest rate risk.

- 2.4) The over-collateralization levels in the cover pool is
expected to be provided on a "committed" basis. The minimum over-
collateralization levels that are consistent with the Aaa rating
are 23.0% and 27.0% respectively, which should be provided in a
"committed" form. These numbers show that Moody's is not relying
on "uncommitted" over-collateralization in its expected loss
analysis.

The TPI assigned to this transaction is Probable. Moody's TPI
framework does not constrain the rating.

At present, the total value of the assets included in the cover
pool, comprising 1,779 residential mortgage loans is
approximately EUR91 million. The loans have a weighted-average
seasoning of 60 months and a weighted-average loan-to-value (LTV)
ratio of 59.1%.

The provisional rating assigned by Moody's addresses the expected
loss posed to investors. Moody's ratings address only the credit
risks associated with the transaction. Other non-credit risks
have not been addressed, but may have a significant effect on
yield to investors.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings only represent Moody's
preliminary opinion. Upon a conclusive review of the transaction
and associated documentation Moody's will endeavor to assign a
definitive rating to the covered bonds.

KEY RATING ASSUMPTIONS/FACTORS

Covered bond ratings are determined after applying a two-step
process: an expected loss analysis and a TPI framework analysis.

EXPECTED LOSS: Moody's determines a rating based on the expected
loss on the bond. The primary model used is Moody's Covered Bond
Model (COBOL), which determines expected loss as (i) a function
of the issuer's probability of default (measured by the issuer's
rating); and (ii) the stressed losses on the cover pool assets
following issuer default.

The cover pool losses for the covered bonds are 28.1% on a
weighted average basis. This is an estimate of the losses Moody's
currently models if LBB defaults. Cover pool losses can be split
between market risk of 16.8% and collateral risk of 11.3% (both
on a weighted average basis). Market risk measures losses as a
result of refinancing risk and risks related to interest-rate and
currency mismatches (these losses may also include certain legal
risks). Collateral risk measures losses resulting directly from
the credit quality of the assets in the cover pool. Collateral
risk is derived from the collateral score, which is currently
16.9% on a weighted average basis.

The minimum over-collateralization levels that are consistent
with the Aaa rating target are 23.0% and 27.0% respectively.
Therefore, Moody's is not relying on "uncommitted" over-
collateralization in its expected loss analysis.

For further details on cover pool losses, collateral risk, market
risk, collateral score and TPI Leeway across covered bond
programs rated by Moody's please refer to "Moody's EMEA Covered
Bonds Monitoring Overview", published quarterly. All numbers in
this section are based on Moody's most recent modelling (based on
data, as per July 31, 2012).

TPI FRAMEWORK: Moody's assigns a "timely payment indicator"
(TPI), which indicates the likelihood that timely payment will be
made to covered bondholders following issuer default. The effect
of the TPI framework is to limit the covered bond rating to a
certain number of notches above the issuer's rating.

For Daheim Series 2012-1, Moody's has assigned a TPI of Probable.

SENSITIVITY ANALYSIS

The robustness of a covered bond rating largely depends on the
issuer's credit strength.

The TPI Leeway measures the number of notches by which the
issuer's rating may be downgraded before the covered bonds are
downgraded under the TPI framework.

Based on the current TPI of Probable the TPI Leeway for Daheim
Series 2012-1 is 2 notches, meaning the covered bonds might be
downgraded as a result of a TPI cap once the issuer rating is
downgraded below A3, all other variables being equal.

A multiple-notch downgrade of the covered bonds might occur in
certain limited circumstances, such as (i) a sovereign downgrade
negatively affecting both the issuer's senior unsecured rating
and the TPI; (ii) a multiple-notch downgrade of the issuer; or
(iii) a material reduction of the value of the cover pool.

As the euro area crisis continues, the ratings of covered bonds
remain exposed to the uncertainties of credit conditions in the
general economy. The deteriorating creditworthiness of euro area
sovereigns as well as the weakening credit profile of the global
banking sector could negatively impact the ratings of covered
bonds. For more information please refer to the Rating
Implementation Guidance published on February 13, 2012 "How
Sovereign Credit Quality May Affect Other Ratings". Furthermore,
as discussed in Moody's special report "Rating Euro Area
Governments Through Extraordinary Times -- An Updated Summary,"
published in October 2011, Moody's is considering reintroducing
individual country ceilings for some or all euro area members,
which could affect further the maximum structured finance rating
achievable in those countries. Moody's is also continuing to
consider the impact of the deterioration of sovereigns' financial
condition and the resultant asset portfolio deterioration in
covered bond transactions.

The principal methodology used in this rating was "Moody's
Approach to Rating Covered Bonds" published in July 2012.


Q-CELLS SE: Creditors Back Hanwha's Takeover Bid
------------------------------------------------
Stefan Nicola at Bloomberg News reports that Hanwha Group, a
South Korean industrial group, won backing from Q-Cells SE's
creditors to buy the company.

According to Bloomberg, a Q-Cells statement said that Hanwha will
take over most of Q-Cells under an agreement signed Aug. 26 that
won backing at a creditor meeting on Wednesday in Dessau-Rosslau,
Germany.

Hanwha said on Aug. 27 it will pay as much as EUR40 million
(US$50 million) in cash for the Thalheim-based company's plants
in Germany and Malaysia, and sales units in the U.S., Australia
and Japan, Bloomberg notes.  It will assume MYR850 million
(US$272 million) of debt guaranteed by Q-Cells Malaysia,
Bloomberg discloses.

In April, Q-Cells filed for protection from creditors, who chose
Hanwha over Isofoton SA, a Spanish power plant developer that
offered to invest EUR300 million with the Rocket Venture Fund,
Bloomberg recounts.

The cash part of the sale will depend "on the volume of
additional liabilities that will have to be taken over," Q-Cells,
as cited by Bloomberg, said in the statement.  Q-Cells said that
Hanwha will take on 1,250 employees of the company's 1,550 global
workforce, Bloomberg relates.

Q-Cells said the company's shareholders will receive neither
dividends nor other benefits from the proceeds of the sale,
Bloomberg notes.

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



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


EPIC DRUMMOND: S&P Cuts Ratings on Three Note Classes to 'CCC-'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Epic (Drummond) Ltd.'s class A, B, C, D, E, F, and G notes.

"We have taken the rating actions in the context of our regular
surveillance of this transaction. They follow the occurrence of
swap-breakage costs in the Countrywide loan reported to be of at
least EUR26 million and the sale of the assets securing the
Project DD loan for less than the securitized loan amount. We
have lowered our ratings on all of the classes of notes following
our review of the recoverable proceeds of several assets backing
the reference loans and in view of their respective sovereign
risks," S&P said.

"Epic (Drummond) is a synthetic commercial mortgage-backed
securities (CMBS) transaction. At closing in June 2007, it
entered into credit default swap agreements with The Royal Bank
of Scotland PLC (RBS; A/Stable/A-1) for a portfolio of reference
loans originated and serviced by RBS. Loss allocation to the
noteholders is synthetically linked to the performance of a
reference pool, originally comprising 13 loans secured on 71
properties located in Germany, Finland, Italy, Spain, Greece,
Portugal, and Poland," S&P said.

"RBS continues to own the reference loans, which do not provide
security for the notes. Instead, at closing, the proceeds of the
issuance were deposited in a bank account and this cash acts as
security for the rated notes. The current note balance is
EUR945.0 million (from EUR1,143.3 million at closing). The final
maturity date of the notes is in January 2022, and the loans are
scheduled to mature between 2012 and 2017," S&P said.

"Of the 12 loans in this transaction, the Project DD and
Countrywide loans are in special servicing. These two loans
represent 56% of pool balance," S&P said.

           The Project DD Loan (21% of the Pool Balance)

"This loan is the second-largest loan in the pool and was
scheduled to mature in January 2012. It is backed by
predominantly retail, office, and industrial properties in the
Helsinki Metropolitan area, which are leased to 167 tenants," S&P
said.

"According to the latest special notice regarding this loan, the
assets were sold and the servicer expects that the net proceeds
of the sale will be applied to the notes by January 2013.
Following the swap provider's deduction of enforcement costs and
swap payments until January 2013, we believe that a significant
portion of the proceeds will be sequentially applied to the class
A notes, with the remaining unpaid amounts applied in reverse
sequential order. The losses from the remaining unpaid amounts
would likely the class E, F, and G notes," S&P said.

            The Countrywide Loan (35% of the Pool Balance)

The Countrywide loan is the largest loan in the pool and is now
scheduled to mature in April 2014.

"It is backed by a portfolio of six shopping centers and four
retail parks, mainly in eastern Germany, and leased to 499
tenants. Each property benefits from Kaufland as an anchor
tenant, until at least 2022. Kaufland is a German hypermarket
chain, which is part of the same group as Lidl and Handelshof,"
S&P said.

"According to the latest servicer report, the reported net income
is approximately EUR26.0 million (compared with EUR23.2 million
at cut-off) and the vacancy rate stands at about 7%. The servicer
does not report the weighted-average lease term; however, we
understand that about 25% of the leases may expire within 36
months," S&P said.

                           Other Loans

"The remaining loans are backed by properties throughout Spain,
Portugal, Poland, Italy, and Greece. We have reviewed each loan
based on reported data. They range in size from EUR27.0 million
to EUR87.5 million, and have maturity profiles ranging from 2011
to 2017. The loans are, in our view, mostly backed by strong
tenants or long and diversified leases that we believe are less
likely to result in losses," S&P said.

                         Sovereign Risks

"Our criteria for nonsovereign ratings that exceed European
Monetary Union (EMU) sovereign ratings consider sovereign and
country risks to be relevant rating factors for securitization
ratings. Country risk can affect our view of the credit quality
of loans secured on assets in particular jurisdictions. Our
criteria permit up to a six-notch rating differential between
nonsovereign issuers and structured finance transactions and the
related EMU sovereign. Following the application of these
criteria, we have lowered our estimate regarding the expected
recoverable proceeds in the Greek, Spanish, and Portuguese loans
in this transaction to reflect country risk," S&P said.

              STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

    http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class             Rating
          To                   From

Epic (Drummond) Ltd.
EUR1.143 Billion Commercial Mortgage-Backed Floating-Rate Notes

Ratings Lowered

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


FLEET STREET: Fitch Affirms 'CCsf' Rating on Class D Notes
----------------------------------------------------------
Fitch Ratings has upgraded Fleet Street Finance Two plc's class A
notes, and affirmed all others, as follows:

  -- EUR219.1m class A (XS0268932836) due 2014 upgraded to
     'BBBsf' from 'BBsf'; Outlook Stable

  -- EUR166.5m class B (XS0268933487) due 2014 affirmed at 'Bsf';
     Outlook Stable

  -- EUR140.1m class C (XS0268934451) due 2014 affirmed at
     'CCCsf'; Recovery Estimate (RE) 80%

  -- EUR96.9m class D (XS0268934618) due 2014 affirmed at 'CCsf';
     RE 0%

The upgrade of the class A notes is driven by the loan's
significant pay-down since the last rating action in September
2011.  Over the past 12 months, 24 properties have been sold,
either as single assets or through portfolio sales.
Consequently, the loan has amortised by around 40%, reducing the
class A balance to EUR219.1m as at the July interest payment
date, down from EUR592.4m a year previously.

With all sale proceeds allocated on a fully sequential basis,
evidence of strong asset sales in the past year (each above the
respective allocated loan amount) has improved the prospects for
senior bondholders.  Structural concerns that had contributed to
a rating cap of 'BBsf' have been largely allayed.  Some 'tail
risk' is presented by the reliance on a single tenant for income,
although typically prime locations mitigate some of this
exposure.

The size of the properties may pose a bigger risk.  Most of the
amortisation achieved recently is attributable to the sale of a
trophy asset, the Oberpollinger property in Munich, which
resulted in a EUR188.3m prepayment.  Many of the remaining stores
have over three floors, limiting the number of potential
replacement operators or owners.  While it would be possible to
subdivide the assets to house a number of smaller operators, this
would incur redevelopment expenses.

Concerns about asset size are illustrated by the composition of
the properties that have been sold, with the majority
considerably smaller than those unsold, almost half of which (21)
offer greater than 10,000sq m of space.  Around 40 of the
original 109 properties sold were smaller than 1,000sq m, thus
appealing to small investors somewhat removed from the funding
constraints afflicting the wider German real estate market.
Fitch will continue to monitor the progress of asset sales for
any impact on credit quality.


FLEET STREET: Fitch Lowers Rating on Class B Notes to 'CCCsf'
-------------------------------------------------------------
Fitch Ratings has downgraded Fleet Street Finance Three plc's
notes due October 2016, as follows:

  -- EUR346.0m class A1 (XS0302957062) downgraded to 'BBBsf' from
     'Asf'; Outlook Stable

  -- EUR66.7m class A2 (XS0302957575) downgraded to 'Bsf' from
     'BBsf'; Outlook Negative

  -- EUR52.6m class B (XS0302958110) downgraded to 'CCCsf' from
     'Bsf'; Recovery Estimate RE55%

The downgrades reflect Fitch's increased concern about the
largest loan in the transaction, EUR327.6 million Corleone (55.9%
of the securitized portfolio).  The sponsor failed to repay the
debt in full at loan maturity in April 2012.  Instead of
enforcing, the servicer opted to extend the loan until October
2014, two years prior to final legal maturity.  Fitch believes
the extension may indeed be beneficial, by allowing the borrower
more time to manage an orderly portfolio sale.  However, this
does not allay Fitch's concerns about the prospects for secondary
quality collateral, on which the bulk of the portfolio is
secured.  The agency therefore believes that a forced liquidation
of the portfolio will be hard to avoid, potentially implying
significant market value declines if compared to the latest
reported valuation.

The borrower of the EUR212 million Blue Star loan (31.7% of the
securitized portfolio) also failed to repay its debt at maturity
in April 2012.  A standstill arrangement has been put in place
until October 2012 to allow the special servicer and borrower
time to discuss options for a successful exit.  One of the three
single-let properties serving as collateral is exposed to
imminent re-letting risk as the underlying lease expires in
September 2013.  Therefore almost 30% of the borrower's rental
income is subject to possible lease termination.  A lease renewal
would result in a substantial appreciation in collateral value.
In the absence of that, potential investors may either delay
making any investment decisions or demand a significant discount
in purchase price in order to compensate for the uncertainty
surrounding the tenant's willingness to stay.

The collateral securing the Orange loan was sold in May 2012.
While losses are yet to be allocated to the notes, the servicer
reports that a sale price of EUR50 million has been accepted for
the collateral, some way short of the EUR67 million senior debt
at the April 2012 interest payment date.  This confirms Fitch's
expectation that declining occupier demand for aging stock of
secondary Dutch office property in need of significant capital
expenditure would limit investor appetite.  The expected loss
allocation will fully wipe out class E and result in a partial
write-down of class D (both not rated by Fitch).


KBC BANK: S&P Continues to Base Ratings on Bank's 'bb' Anchor
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BBB-/A-3' long-
and short-term counterparty credit ratings on KBC Bank Ireland
PLC (KBCI). The outlook remains negative.

"On Aug. 7, 2012, KBC Group reported that KBCI made a post-tax
loss of EUR72 million in the second quarter of 2012, after
registering a EUR136 million impairment charge. This follows the
reported EUR126 million post-tax loss in the first quarter and
sizable losses in the 2010/2011 financial years, due to high loan
impairment charges across the bank's retail and commercial
lending portfolios. As in 2011, the first half losses led parent
KBC Bank NV (KBC; A-/Stable/A-2) to make a capital injection,
totalling EUR125 million, to ensure the stability in the bank's
regulatory capitalization. KBCI's Tier 1 ratio at June 2012 was a
reported 11.1%, little changed on the preceding quarters. We
expect that the ratio will remain at this level for the
foreseeable future. Even so, we project that capitalization,
measured by our risk-adjusted capital (RAC) framework, may be at
risk of sustained deterioration through to end-2013," S&P said.

"We calculate that KBCI's RAC ratio was 5.1% at end-2011, little
changed on the pro forma 5.0% ratio that we calculated for end-
2010, based on our updated November 2011 criteria. The large gap
between the RAC ratio and the Tier 1 ratio primarily reflects a
material difference in the risk-weights that we apply to credit
exposures. The quality of the bank's capital is sound, in our
view, as it is all common equity. While a reduced interest margin
has led to some pressure on revenues, the bank's high efficiency
and advantageous cost of funds means that it continues to have a
positive earnings buffer, unlike several other Irish peers, which
suggests an achievable return to profitability once the
impairment charge subsides," S&P said.

"Given the apparently reducing pace of deterioration in the
bank's asset quality, as reported by KBC, we consider the group's
guidance of a EUR500 million - EUR600 million impairment charge
for 2012 to be broadly credible, which in our view points to a
post-tax loss of a little above EUR300 million. We expect the
losses to narrow in 2013, but that the bank will not become
profitable until 2014 at the earliest. While ongoing moderate
deleveraging will continue to reduce risk-weighted assets, our
ratings assume that KBC will make further material capital
injections into KBCI in the coming quarters as it seeks to
maintain the bank's Tier 1 ratio at around 11%," S&P said.

"We estimate that the RAC fell to slightly below 5.0% at June 30,
2012 and, while we currently project that it may well move back
above the 5.0% level by end-2012 and stay there, in our view
there is meaningful risk that the RAC ratio could instead decline
through the period to end-2013, albeit most likely remaining
above 4.0%. This divergent trend from the projected stable Tier 1
ratio reflects the fact that potentially supportive elements
within Tier 1 capital would not be reflected in total adjusted
capital (TAC, the numerator of the RAC calculation). These
include the likely reducing deductions for the expected loss
shortfall and rising deferred tax assets for tax-loss
carryforwards. As a result, capital injections that may be
sufficient to maintain the Tier 1 ratio at around 11% would
likely be insufficient to prevent a fall in the RAC ratio, in our
view," S&P said.

"Standard & Poor's continues to base its ratings on KBCI on the
bank's 'bb' anchor, which is based on our view of the banking
system in Ireland. We consider KBCI's business position to be
'moderate' as we consider that its business mix and stable
franchise are somewhat offset by its somewhat niche market
position. We view capital and earnings as 'moderate' since we
expect that while the RAC ratio may have fallen below 5.0%, it
may well move back above 5.0% by end-2012 and stay there. Our
assessment of risk position is 'adequate', reflecting
geographical concentration on a par with relevant peers, and loss
experience that, while heavy in the current environment, is in
our view not materially better or worse than peers. We view
funding as 'average' and liquidity as 'adequate' due to support
from KBC which has enabled KBCI to deal with any refinancing risk
despite the limited nature of its own deposit-taking franchise,"
S&P said.

"The long-term counterparty credit rating is three notches higher
than the 'bb-' stand-alone credit profile (SACP), reflecting our
view that KBCI is 'strategically important' to its parent, KBC,
in accordance with our group rating methodology for banks. While
KBC remains highly supportive of its Irish subsidiary, we note it
has publicly stated that KBCI is not a core part of its future
growth strategy. KBCI would not ordinarily meet our criteria for
being assessed as a 'strategically important' subsidiary; in
particular that the subsidiary is unlikely to be sold and is
important to the group's long-term strategy or is reasonably
successful at what it does (which in our view is difficult in the
context of the uncertain Irish operating environment, as our high
BICRA score of '7' for Ireland demonstrates). However, we
consider that any potential sale is highly unlikely over the two-
year outlook time horizon and we understand that KBC will
continue to be supportive of KBCI's capital and funding needs. We
consider KBCI to be of 'low' systemic importance and we factor no
government support into its ratings," S&P said.

"The negative outlook principally reflects our view that while
KBCI's regulatory Tier 1 capital may remain robust, there is a
risk that capitalization measured by Standard & Poor's RAC
framework may move persistently below the 5.0% threshold. It also
acknowledges the risk that the apparent slowing pace of
deterioration in KBCI's asset quality, and economic and
collateral value trends in Ireland could yet take a further turn
for the worse, further delaying the bank's return to
profitability," S&P said.

"The ratings reflect our expectation that KBCI will remain loss-
making in the second half of 2012 and full-year 2013, mainly as a
result of continued elevated loan impairment charges. We expect
that KBCI will continue to receive capital injections from the
parent that will hold the regulatory Tier 1 ratio at around 11%.
In our view, this may well result in the RAC ratio moving back
above the 5.0% level by end-2012 and staying there. We further
expect the parent to remain supportive with regard to funding, at
a time when KBCI is trying to grow its retail customer deposit
base," S&P said.

"We could potentially lower the ratings if KBCI's SACP
deteriorates. This would most likely arise if we project the RAC
ratio to be below 5.0% through end-2013 -- which would lead us to
revise our assessment of KBCI's capital and earnings to 'weak'
from 'moderate'. It could also result if KBCI's asset quality and
impairment loss trends become demonstrably weaker than peers' --
a factor that we would most likely reflect in a revision of the
bank's risk position assessment to 'moderate' from 'adequate',"
S&P said.

"We may also take negative rating action if we observe that the
links between KBCI and KBC are weakening, even allowing for our
expectation of continued support. This could result in a revision
of our group status designation for KBCI to 'moderately
strategic'. Assuming no change in the SACP, the latter assessment
would lead to a two-notch downgrade of the counterparty credit
ratings. This is because a 'moderately strategic' group status
only allows for one notch of group support compared with the
current three notches," S&P said.

"We could revise the outlook on KBCI to stable if, in our view,
the links between KBC and KBCI do not weaken. It would also be
supported by clear evidence that the impairment charge is on a
sustainable downward track, leading to a high probability that
the bank's earnings and capitalization will be, at worst, in line
our expectations," S&P said.


RMF EURO III: S&P Affirms 'BB' Rating on Class V Notes
------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
RMF Euro CDO III PLC's class II, and III notes. "At the same
time, we have affirmed our ratings on the class I, IV, and V
notes," S&P said.

"The rating actions follow our assessment of the transaction's
performance since our previous review on Sept. 5, 2011, taking
into account recent developments. We have used data from the
trustee report dated July 9, 2012, and our cash flow analysis.
We have applied our 2012 counterparty criteria and our 2009 cash
flow criteria," S&P said.

"Based on our analysis, the portfolio's performance has
deteriorated. This has been primarily due to the increase to
9.68% from 4.69% in the proportion of assets that we consider to
be rated in the 'CCC' category ('CCC+', 'CCC', or 'CCC-'). Of the
portfolio, 0.34% now comprises defaulted assets (rated 'CC',
'SD' [selective default], or 'D')," S&P said.

"Our analysis indicates that the level of available credit
enhancement for the class I notes has marginally increased due to
their deleveraging. At the same time, the level of available
credit enhancement for the class II to V notes has decreased. In
addition, the weighted-average spread earned on the collateral
portfolio has increased and the portfolio's weighted-average
maturity has decreased. However, the portfolio's negative credit
migration has caused our scenario default rate to increase in the
transaction," S&P said.

"We have subjected the capital structure to a cash flow analysis,
to determine the break-even default rate for each rated class of
notes. In our analysis, we have used the reported portfolio
balance, weighted-average spread, and weighted-average recovery
rates that we consider to be appropriate. We have incorporated
various cash flow stress scenarios, using alternative default
patterns, levels, and timings for each liability rating category
('AAA', 'AA', and 'BBB'), in conjunction with different interest
rate stress scenarios," S&P said.

"At closing, RMF Euro CDO III entered into swap obligations to
mitigate currency risks, which do not fully reflect our 2012
counterparty criteria. As a result, our criteria limit the
maximum potential rating on the notes at the issuer credit rating
on the counterparty plus one notch. Accordingly, we have
conducted our analysis taking into account the transaction's
exposure to the swap counterparty and the potential effects if
the swap did not perform. Under this scenario, the cash flow
stresses cannot support a higher rating than 'AA+ (sf)' on the
class I notes. We have therefore affirmed our 'AA+ (sf)' rating
on the class I notes," S&P said.

"We have raised our ratings on the class II and III notes
because, although the level of credit enhancement has slightly
decreased, the increase in the spread and the decrease in the
weighted-average life support a higher rating on these classes of
notes," S&P said.

"We have affirmed our ratings on the class IV and V notes
because, although the level of credit enhancement available to
these classes of notes decreased, it is still commensurate with
the ratings that we assigned in our last review," S&P said.

"We have applied our largest obligor default test--a supplemental
stress test in our 2009 cash flow criteria. We have also applied
our largest industry default test (another supplemental stress
test). The application of our supplemental tests did not
constrain our ratings on any of the notes," S&P said.

RMF Euro CDO III is a cash flow collateralized loan obligation
(CLO) transaction that closed in August 2005 and securitizes
loans and bonds to primarily speculative-grade corporate firms.

            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

RMF Euro CDO III PLC
EUR357 Million Secured Floating-Rate Notes

Ratings Raised

II          AA- (sf)       A+ (sf)
III         A (sf)         A- (sf)

Ratings Affirmed

I           AA+ (sf)
IV          BB+ (sf)
V           BB (sf)


TARGET EXPRESS: Put In Liquidation Amid Worker Protests
-------------------------------------------------------
Barry O'Halloran and Louise Roseingrave at The Irish Times report
that Target Express was placed in liquidation on Wednesday as
workers continued sit-ins at some of its depots.

Target ceased trading with the loss of 398 jobs this week, the
Irish Times relates.  Managing director Seamus McBrien claimed
the Revenue Commissioners forced it out of business in a row over
EUR175,000, the Irish Times notes.

According to the Irish Times, the High Court on Wednesday
appointed Michael McAteer and Stephen Tennant of Grant Thornton
as provisional liquidators to College Freight, which trades as
Target Express.

Jim Hamilton and Peter Doherty of BDO were appointed liquidators
of Asda Properties, a holding company for the Target group's
properties, the Irish Times discloses.

Workers have been holding sit-in protests at Target depots in
Cork and Galway in a bid to get unpaid wages due to them, the
Irish Times recounts.

A statement issued by Grant Thornton said that Messrs. McAteer
and Tennant would treat workers' claims -- including minimum
notice, redundancy payments and the processing of their P45s --
as a priority, the Irish Times notes.

The company asked the High Court to appoint the provisional
liquidators Wednesday afternoon, the Irish Times recounts.  They
are due back in court on September 19 to have their appointments
confirmed, the Irish Times says.

Target Express opened in 1988 and is Ireland's largest privately
owned transport and distribution company with 12 operating depots
throughout the 32 counties and 4 within the UK.  It employs 390
staff in Ireland and the UK.



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


ARDAGH PACKAGING: S&P Cuts Long-Term Corp. Credit Rating to 'B'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'B' from 'B+' its
long-term corporate credit ratings on Luxembourg-based glass-
container and metal packaging manufacturer Ardagh Packaging Group
Ltd. (Ardagh) and related entities Ardagh Packaging Holdings Ltd.
and ARD Finance S.A. "At the same time, we removed the ratings
from CreditWatch, where they were placed with negative
implications on July 17, 2012. The outlook is stable," S&P said.

"In addition, we lowered our issue ratings on Ardagh's senior
secured debt instruments to 'B+' from 'BB-', and our issue
ratings on the group's senior debt instruments and subordinated
payment-in-kind (PIK) notes to 'CCC+' from 'B-'. These ratings
were also removed from CreditWatch, where they were placed with
negative implications on July 17, 2012," S&P said.

"The downgrades follow Ardagh's announcement that it has
completed the debt-funded acquisition of U.S.-based glass
container producer Anchor Glass Container Corp. (Anchor Glass).
The downgrades reflect our view of Ardagh's ongoing high leverage
and lower-than-anticipated deleveraging prospects as a result of
its persistently aggressive financial policy," S&P said.

"In our view, Ardagh's credit metrics are no longer commensurate
with a 'B+' rating and are unlikely to recover in the near term.
This is due to the group's high debt leverage, which in turn is
driven by a series of debt-funded acquisitions in recent years.
Following the group's three-part notes issuance in July 2012,
Ardagh's Standard & Poor's-adjusted debt totals about EUR4.7
billion," S&P said.

"In our opinion, Ardagh's free operating cash flow generation is
unlikely to make a significant contribution toward reducing debt
over the near term because adjusted funds from operations to debt
is unlikely to exceed 10%. This is because we believe that
economic weakness in Europe will continue to dampen volumes in
the group's Metals division, particularly in the more cyclical
sectors (such as aerosols and paints) that represent about 26% of
divisional sales," S&P said.

"In our view, Ardagh's credit metrics will remain at levels
commensurate with the 'B' rating. Specifically, this means
adjusted FFO to debt is unlikely to exceed 10%. The outlook also
takes into account the group's aggressive financial policy and
ongoing, largely debt-funded growth strategy," S&P said.

"We could take a positive rating action if the group deleverages
and improves its credit measures in line with those we consider
commensurate with a 'B+' rating. This could occur if Ardagh uses
an IPO to reduce its debt," S&P said.

"Equally, we could lower the ratings if Ardagh's credit measures
deteriorate further -- for example, because of further debt-
funded acquisitions, financial underperformance, or unexpected
material shareholder returns. Similarly, we could downgrade
Ardagh if the group suffers from liquidity issues. However, we
consider these risks to be remote in the near term," S&P said.


KLOECKNER PENTAPLAST: Moody's Rates Bond Issuance 'Caa1'
--------------------------------------------------------
Moody's Investors Service has assigned a definitive Caa1 (LGD 5,
85%) rating to Kloeckner Pentaplast's (KP) recent bond issuance.
The senior secured notes have been issued by finance vehicle KP
Germany Erste GmbH, an indirect subsidiary of Kloeckner Holdings
S.C.A., the ultimate holding company of the Kloeckner Pentaplast
group. The notes mature in July 2017.

Ratings Rationale

Moody's definitive ratings on this debt obligation confirms the
provisional rating assigned on June 28, 2012.

The proceeds from the issuance, together with proceeds from the
PEC's and TPEC's from new sponsors led by Strategic Value
Partners, have been used to refinance existing senior debt at
Kloeckner Pentaplast/Kleopatra as part of the recent debt
restructuring of the group.

The assigned Caa1 rating of the senior secured notes is two
notches below the group's B2 corporate family rating, reflecting
the sizeable portion of priority debt ranking ahead of the notes.
While the notes benefit from the same collateral package as the
group's senior secured bank debt, in a default scenario
noteholders will benefit from any proceeds on a subordinated
basis only and payments in respect of the guarantees supporting
the notes are applied first to the senior secured revolving
credit facility and senior secured term loan B and only
thereafter to the notes.

The assigned B2 Corporate Family Rating reflects the group's high
financial leverage with Debt/EBITDA as adjusted by Moody's of
6.4x on a pro forma basis based on the capital structure that has
been implemented in June 2012, which positions KP initially
weakly in its rating category. Furthermore, the rating is
constrained by the group's fairly commoditized product portfolio
as well as the price competitive nature of the industry. In
addition, input cost management is deemed to be a major challenge
as only about 50% of contracts contain automatic pass-through
mechanisms, leaving the group exposed to the price volatility of
resin and to individual negotiations with its customers to
preserve profitability. Moody's notes, however, the solid track
record with fairly stable EBITDA generation over the past years.

The rating also reflects (i) the group's solid size and market
position in the rigid plastic packaging market with leading
positions in most of its business areas; (ii) fairly stable
volumes through the cycle as a result of a high share of sales
towards non-discretionary pharma and food end markets with solid
customer diversification and longstanding relationships; (iii)
the stable operating profitability over the past years despite
challenging economic conditions and extensive restructuring
measures, helped by the group's ability to swiftly pass on input
cost volatility.

Upwards pressure could build should KP manage to significantly
reduce leverage towards 5 times, measured as debt/EBITDA, on a
sustainable basis on the back of improvements in operating
profitability. Furthermore, the rating could enjoy upwards
pressure were KP to improve free cash flow generation towards 5%
of total debt and interest cover in terms of EBIT/Interest
towards 1.5 times.

A deterioration in profitability, caused for instance by
increasing competition or challenges to manage volatile raw
material costs resulting in weaker profitability and material
negative free cash flow or a the inability to improve Debt/EBITDA
as adjusted by Moody's towards 6 times (from a pro forma leverage
of 6.4x as of June 2012) as well as tightening headroom under the
company's financial covenants could put negative pressure on the
ratings.

The principal methodology used in rating KP Germany Erste GmbH
was the Global Packaging Manufacturers: Metal, Glass, and Plastic
Containers Industry Methodology published in June 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Kloeckner Holdings S.C.A., with legal domicile in Luxembourg, is
the ultimate holding company of German plastic packaging
Manufacturer Kloeckner Pentaplast, a global leader in the
manufacturing of rigid plastic films for the pharmaceutical,
food, medical, electronics and other packaging industry. The
group generated EUR1.2 billion of sales in the last twelve months
ending March 2012.



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


FAB CBO 2005-1: S&P Downgrades Rating on Class A2 Notes to 'BB+'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on FAB CBO 2005-1 B.V.'s
class A1 and A2 notes. FAB CBO 2005-1 also previously issued
unrated class B and C notes.

"The rating actions follow our assessment of the transaction's
performance since our previous review on May 3, 2011, and the
application of our collateralized debt obligation (CDO) of
structured finance (SF) assets criteria. We performed our credit
and cash flow analysis using data from the trustee report dated
July 30, 2012. We have also applied our 2012 counterparty
criteria," S&P said.

"On March 19, 2012, we placed on CreditWatch negative our ratings
on the class A1 and A2 notes in this transaction following our
update to the criteria and assumptions we use to rate CDOs of
structured finance assets, which became effective on March 19,
2012," S&P said.

"From our analysis, we have observed an increase in the
proportion of assets that we consider to be rated in the 'CCC'
category ('CCC+', 'CCC', and 'CCC-') and a decline in the
proportion of defaulted assets (rated 'CC', 'C', 'SD' [selective
default], or 'D') in the collateral pool, since we previously
performed a full review of this transaction. We have also seen
further principal payments made toward the senior class of notes
(the class A1 notes), which increased credit enhancement levels
available to the class A1 notes. The portfolio is diversified
among five industries and 10 countries. The portfolio also
benefits from a higher weighted-average spread since our last
review," S&P said.

"We factored in the above observations and subjected the capital
structure to our cash flow analysis, based on the methodology and
assumptions outlined by our CDO of SF assets criteria, to
determine the break-even default rate (BDR). We used the reported
portfolio balance that we considered to be performing, the
principal cash balance, the current weighted-average spread, and
the weighted-average recovery rates that we considered to be
appropriate. We incorporated various cash flow stress scenarios
using various default patterns, levels, and timings for each
liability rating category, in conjunction with different interest
rate stress scenarios," S&P said.

"We also determined the scenario default rate (SDR) for each
rated class of notes, which uses our CDO Evaluator 6.0 model to
determine the default rate expected on a defined portfolio at
each rating level based on the reclassification of asset types
under our CDO of SF assets criteria to address the apparent lack
of performance diversity in each structured finance asset type,
amendments to asset-specific maturities, and updated asset
correlation parameters which have resulted in higher SDRs, which
we then compared with the respective BDRs," S&P said.

"The application of our largest obligor default test did not
constrain our ratings on any of the notes. This is a supplemental
stress test that we introduced in our September 2009 update to
our CDO criteria, which assesses whether a CDO has sufficient
credit enhancement to pass the applicable thresholds at each
liability rating level. We have used the same obligor or
structured finance asset ratings used in our CDO Evaluator model
for the supplemental tests," S&P said.

"Taking into account our credit and cash flow analysis, we
consider the level of credit enhancement available to the class
A1 and A2 notes in this transaction to be commensurate with lower
ratings then we previously assigned. We have therefore lowered
and removed from CreditWatch negative our ratings on these
classes of notes," S&P said.

FAB CBO 2005-1 is a cash flow mezzanine structured finance CDO
transaction that closed in April 2005.

              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

FAB CBO 2005-1 B.V.
EUR305.6 Million Secured Floating-Rate Notes

Ratings Lowered and Removed From CreditWatch Negative

A1          A- (sf)               AA (sf)/Watch Neg
A2          BB+ (sf)              A (sf)/Watch Neg

Ratings Unaffected

B           NR
C           NR

NR-Not rated.



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


FTPYME TDA: Fitch Affirms 'BB-' Rating on Class 3SA Notes
---------------------------------------------------------
Fitch Ratings has affirmed FTPYME TDA CAM 2, F.T.A.'s notes, as
follows:

  -- EUR58.2m Class 1CA(G) (ISIN ES0339758015): affirmed at 'AA-
     sf'; Outlook Negative

  -- EUR27.8m Class 2SA (ISIN ES0339758023): affirmed at 'Asf';
     Outlook Negative

  -- EUR7.7m Class 3SA (ISIN ES033975031): affirmed at 'BB-sf';
     Outlook Negative

Fitch has removed the class 1CA(G) and 2SA notes from Rating
Watch Negative following the transfer of the treasury account to
Barclays Bank plc ('A'/Stable/'F1').  Barclays Bank plc is an
eligible counterparty according to the transaction documentation.

The affirmation is based on the credit enhancement available to
the notes.  The class 1CA(G) and 2SA notes continue to accumulate
additional CE as the transaction deleverages.

Fitch notes the credit quality of the portfolio has deteriorated
markedly in 2012.  Loans more than 90 days in arrears represent
9.2% of the portfolio balance, up from 3.6% in December 2011.

The class 1CA(G) notes' rating and Outlook is limited by the
rating of the Kingdom of Spain ('BBB'/Negative/'F2').  The
highest achievable rating for Spanish structured finance
transactions is 'AA-sf', five notches above the rating of the
sovereign. See "Fitch: SF Impact of Spanish, Italian & Irish
Sovereign Rating Actions", dated 1 Feb 2012 at
www.fitchratings.com, for details of Fitch's view on the link
between sovereign Issuer Default Ratings and structured finance
ratings for eurozone countries.

The Negative Outlook for the class 2SA and 3SA notes reflects the
notes' sensitivity to a sudden spike in defaults which would
deplete the reserve fund.

Rising arrears and default levels have already started to erode
the reserve fund, which declined to EUR7.1m from EUR8.2m in
December 2011. Fitch expects further drawings on the reserve fund
given the sizable arrears pipeline.  The transaction considers
loans more than 12 months in arrears as defaulted.

FTPYME TDA CAM 2, F.T.A., is a static cash flow SME CLO
originated by Caja de Ahorros del Mediterraneo (CAM), now part of
Banco de Sabadell ('BB+'/Stable/'B').  At closing, the issuer
used the note proceeds to purchase a EUR750m portfolio of secured
and unsecured loans granted to Spanish small and medium
enterprises and self-employed individuals.  The transaction is
managed by Titulizacion de Activos, S.G.F.T., S.A.



=====================
S W I T Z E R L A N D
=====================


TAURUS CMBS: S&P Lowers Rating on Class C Notes to 'CCC-'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Taurus CMBS (Pan-Europe) 2006-3 PLC's class A, X1, X2, B, and C
notes. "At the same time, we have affirmed our 'D (sf)' rating on
the class D notes and subsequently withdrew our ratings on the
class X1 and X2 notes," S&P said.

"The rating actions reflect our opinion on cash flow disruptions
in the transaction," S&P said.

"As reflected in the August 2012 cash manager report, the issuer
failed to meet its interest payment obligation under the notes on
the August 2012 payment date. The class C and D notes continue to
accrue unpaid interest. As of August 2012, these two classes of
notes accrued a cumulative interest shortfall amount of EUR96,154
(against EUR71,759 on the previous payment date). The existing
shortfall on the class C notes continues to be minor, in our
view," S&P said.

"The earlier repayment of five of the seven initial loans caused
a spread compression between the two remaining loans and the
remaining notes. Although the two remaining loans pay full
interest, the weighted-average cost of the remaining notes, which
includes the class X1 and X2 notes, exceeds the weighted-average
loan coupon. We understand from the reporting agent that the
transaction excess spread, if any, is not available to cover
overdue interest under the regular notes, and is instead
distributed to the class X1 and X2 noteholders," S&P said.

"The payment of ordinary but nonrecurring fees due to third
parties may result in increased interest shortfalls if such
payments are not spread over several quarters, in our opinion. In
addition, we believe that the repayment of only one of the two
remaining loans at maturity may exacerbate the risk of cash
flow disruptions. Given these factors, we believe that interest
shortfalls may increase on future payment dates and potentially
affect interest payments to the class B notes, particularly in
the current low-interest-rate environment. Therefore, the class B
notes have become more vulnerable to cash flow disruptions, in
our opinion. We also now believe that the credit enhancement
available to the class A, X1, and X2 notes is no longer
sufficient to cover liquidity risks at their current rating
levels," S&P said.

                          RATING ACTIONS

"Our ratings address timely payment of interest, payable
quarterly in arrears, and payment of principal not later than the
legal final maturity date (in May 2015). We have affirmed our 'D
(sf)' rating on the class D notes and lowered to 'CCC- (sf)' from
'B- (sf)' our rating on the class C notes because additional
unpaid interest was deferred on the August 2012 payment date. We
have not lowered our rating on the class C notes to 'D (sf)',
because the existing shortfall remains minor, in our view.
However, continuing interest shortfall on this class of notes
could lead us to lower our rating to 'D (sf)'. We have also
lowered to 'B+ (sf)' from 'BB+ (sf)' our rating on the class B
notes to reflect our opinion that they have become more
vulnerable to interest shortfalls. We have lowered to 'A- (sf)'
from 'AA- (sf)' our ratings on the class A, X1, and X2 notes
because we believe their credit enhancement is no longer
sufficient to cover liquidity risks at their current rating
levels. We will continue to monitor the situation. Further rating
actions would likely be warranted if the risk of interest
shortfalls were to increase," S&P said.

"Subsequently, we have also withdrawn our ratings on the class X1
and X2 notes, to reflect our criteria 'Global Methodology For
Rating Interest-Only Securities,' published on April 15, 2010.
Under these criteria, in the case of ratings on interest-only
securities that were outstanding on April 15, 2010, we maintain
those ratings until they are retired or drop below 'AA-', at
which time we withdraw them," S&P said.

"The rating actions have not resulted from a change in our
opinion on the default probability and likely recovery associated
with the remaining pool of loans backing the transaction," S&P
said.

"Taurus CMBS (Pan-Europe) 2006-3 closed in November 2006 with a
note balance of CHF0.1 million and EUR447.75 million. The
underlying pool initially held seven loans secured on real estate
assets in Switzerland, France, and Germany. On the most recent
note interest payment date, in August 2012, two loans remained
outstanding, and the outstanding note balance was CHF0.1 million
and EUR74.9 million," S&P said.

           POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES

"We have taken the rating actions based on our criteria for
rating European commercial mortgage-backed securities (CMBS).
However, these criteria are under review," S&P said.

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

"On June 4, we published a request for comment (RFC) 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 we adopt new criteria for rating European CMBS, we will
continue to rate and monitor these transactions using our
existing criteria," S&P said.

              STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

       http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class               Rating
           To                   From

Taurus CMBS (Pan-Europe) 2006-3 PLC
CHF0.1 Million, EUR447.75 Million Commercial Mortgage-Backed
Floating-Rate Notes

Ratings Lowered

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

Ratings Lowered and Withdrawn

X1         A- (sf)              AA- (sf)
           NR                   A- (sf)

X2         A- (sf)              AA- (sf)
           NR                   A- (sf)

Rating Affirmed

D          D (sf)



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


BL SUPERSTORES: S&P Raises Rating on Class C1 Bonds From 'BB'
-------------------------------------------------------------
Standard & Poor's Ratings Services has raised its credit ratings
on BL Superstores Finance PLC's class M1 and C1 bonds. "At the
same time, we have affirmed our ratings on the class A2, B2, and
B3 bonds," S&P said.

"The rating actions follow our periodic review of the
transaction's loan and structural features," S&P said.

"BL Superstores Finance is a secured-loan commercial mortgage-
backed securities (CMBS) transaction that closed in February
2006. The loan is now secured on 32 properties (down from 35 at
closing) throughout the U.K. All properties are let to
Sainsbury's Supermarkets Ltd. with a J Sainsbury PLC guarantee.
The leases expire from 2022 to 2086, with the largest
concentration of expiries in 2024 (37% of the total rental
income)," S&P said.

"The transaction's performance has been stable since closing: The
issuer has made all scheduled principal payments, paying down 18%
of the bonds, and the class D1 bonds fully repaid at their
expected maturity date in April 2009. The remaining bonds are
expected to repay in October 2015 (class C1), July 2025 (class
B2), and October 2025 (classes A2, B3, and M1). Their legal final
maturity date is in October 2030--five years after the last
expected maturity date," S&P said.

"The transaction documents allow for automatic property
substitutions, subject to tests that seek broadly to maintain the
portfolio's credit quality. A number of substitutions have
occurred since closing," S&P said.

                        PROPERTY PORTFOLIO

"A number of properties have entered and exited the portfolio
since closing. The latest change was in June 2012, when five
properties were removed: Beckenham, Bodmin, Chadwell Heath,
Frimley, and Leicester. As a result of these removals, the
weighted-average lease term at loan maturity has increased to 3.5
years from 2.3 years at closing," S&P said.

"Additionally, a number of properties deemed to be of lesser
quality or performance have been removed from the portfolio since
closing--thereby increasing the remaining properties' credit
quality. The portfolio's credit quality has also improved since
closing because a number of properties have been refurbished or
extended," S&P said.

"The portfolio's net operating income has increased to GBP62.9
million, from GBP58.3 million at closing. This is mainly because
of additional rents resulting from store extensions and rents
increasing at scheduled rent reviews," S&P said.

"The properties' total market value is currently GBP1.20 billion
compared with GBP1.15 billion at closing--representing a current
52% reported loan-to-value (LTV) ratio. The loan has deleveraged
because of the increased market value and significant
amortization payments made on the loan," S&P said.

                             THE LOAN

"The loan is tranched, to reflect the tranching of the bonds. The
D1 loan tranche has repaid, and both the M1 and C1 loan tranches
have paid down significantly. Each loan tranche has its own
amortization schedule, which has been met since closing," S&P
said.

"The transaction benefits from scheduled amortization. If
amortization continues on schedule, we would expect the loan
balance at loan maturity to be approximately 27% of the loan
balance at closing. There are no LTV or interest coverage ratio
covenants for this loan," S&P said.

                           RATING ACTIONS

"The class M1 bonds have paid down significantly (as per their
amortization schedule) and credit enhancement has increased to a
level that we consider commensurate with a higher rating than we
previously assigned. We have therefore raised to 'AAA (sf)' from
'AA (sf)' our rating on the class M1 bonds," S&P said.

"The class C1 bonds are subject to large amounts of scheduled
principal payments in the few years preceding their expected
maturity date in October 2015. Since we took rating action in May
2010, they have paid down 65% of their outstanding balance,
thereby reducing the risk of shortfalls in a tenant default
scenario. We have therefore raised to 'BBB (sf)' from 'BB (sf)'
our rating on the class C1 bonds," S&P said.

"We have affirmed our ratings on the class A2, B2, and B3 bonds
at 'AAA (sf)', 'A (sf)', and 'A (sf)' to reflect their stable
performance since our previous review," S&P said.

                        COUNTERPARTY RISK

"The transaction documents related to the swap and bank account
agreements are not consistent with our 2012 counterparty
criteria. Our ratings, however, are not constrained by these
criteria because either the ratings are already below the
counterparty constraint or the credit characteristics of the
relevant tranches permit ratings higher than those of any
counterparty constraint," 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

BL Superstores Finance PLC
GBP753 Million Fixed- and Floating-Rate Bonds

Class                    Rating
                To                     From

Ratings Raised

M1              AAA (sf)               AA (sf)
C1              BBB (sf)               BB (sf)

Ratings Affirmed

A2              AAA (sf)
B2              A (sf)
B3              A (sf)


COBRA UK: In Administration; 18 Jobs Affected
---------------------------------------------
BBC News reports that Cobra UK has gone into administration.

BBC relates that administrators said 18 staff were being made
redundant at Cobra UK but 120 would remain as they seek to sell
the firm as a going concern.

According to BBC, Kim Rayment, one of the joint administrators,
said: "Unfortunately the economic climate and difficult trading
conditions significantly affected the business.

"However, we are hopeful of securing a sale and the company will
continue to trade while this is explored."

Cobra UK is car components firm which relocated to Wrexham from
Powys eight months ago.


CORAL INNS: Enters Into Administration
--------------------------------------
BBC News reports that Coral Inns (NI) has been placed into
administration.

The company had been under financial pressure for some time, BBC
notes.

Last year, it entered a standstill agreement with its creditors.

Under that agreement, creditors were due to be repaid over a 14-
month period with a third party investor also injecting
GBP100,000 into the business, according to BBC.

The administrators were appointed by the directors earlier this
month, but the club has remained open for business and will do so
for the forseeable future, BBC relates.

The company's main creditors were HM Revenue and a drinks
supplier, BBC discloses.

Coral Inns (NI) runs Rain nightclub in Belfast.


DAWSON INTERNATIONAL: Scottish Mill Bid Deadline Passes
-------------------------------------------------------
The Scotsman reports that the bid deadline for Dawson
International's historic Scottish mill passed on Wednesday with
administrators unwilling to disclose the level of interest.

According to the Scotsman, the Barrie Knitwear mill in Hawick,
which employs 180 and serves customers including fashion houses
Chanel and Hermes, is being sold to fill a GBP129 million hole in
Dawson's pension liabilities after attempts to offload the fund
failed.

Early indications have suggested about 35 potential buyers in the
mill, including cashmere company Belinda Robertson, the Scotsman
notes.

Dawson International is a leading cashmere business.  It
comprises two trading divisions, based in the UK and the USA.
The UK division comprises the Barrie Knitwear business, based in
Hawick Scotland.


FINDLAY CLARK: Put into Liquidation; 31 Workers Lose Job
--------------------------------------------------------
Greig Cameron at heraldscotland reports that Findlay Clark
Landscapes (Aberdeen) has been placed in liquidation after
struggling to keep skilled workers from moving to better paid oil
and gas jobs.

The business was hit by a mild winter causing a drop in demand
for its gritting and snow clearing services, the report says.

According to the report, administrators from accountancy firm RSM
Tenon said the general economic environment and cashflow
difficulties partly caused by customers withholding payments also
contributed to the liquidation.

All 31 staff at the firm have been made redundant and it has
ceased trading, the report notes.

Findlay Clark Landscapes (Aberdeen) provided garden design,
landscaping and maintenance to a range of domestic, commercial
and public sector clients in the north-east of Scotland.  It
recently expanded into paving and driveway installations plus
snow clearing and its most recent turnover was about GBP1.5
million.


JJB SPORTS: Put Up for Sale; Shares May Be Worthless
----------------------------------------------------
Rachel Cooper at The Telegraph reports that JJB Sports has put
itself up for sale following a slide in sales amid stiff
competition, but the chain warned investors that their shares may
be worthless.

JJB announced on Thursday that its directors did not believe the
chain would be able to raise enough money to stage a turnaround
and had therefore decided to put the retailer up for sale, the
Telegraph relates.  But, it warned investors that their shares
may end up worthless due to the amount owed by the company, which
stands at around GBP36.4 million in total, the Telegraph notes.

JJB, which has 4,000 staff and 180 shops, has issued a string of
profit warnings as sales slid amid tough competition, the
Telegraph discloses.

According to the Telegraph, JJB on Thursday said that Bob
Corliss, who was brought in as chairman, would lead the company
through the sale process.

The decision to sell the retailer followed a warning last month
that a deterioration in trading was likely to accelerate the
timing of additional funding required by the company, the
Telegraph states.

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


PROMINENT CMBS 2: S&P Cuts Ratings on 3 Note Classes to 'CCC-'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
all classes of notes in Prominent CMBS Conduit No. 2 Ltd.

Prominent 2 is a U.K. commercial mortgage-backed securities
(CMBS) transaction in which the payments under the notes are
synthetically linked via credit default swaps to the payments
under five loans. The loans in turn are backed by office and
retail assets in England and Wales.

Of the five loans, credit events have occurred with regard to
three. The Cavendish loan failed to repay following the
appointment of a receiver to one of the corporate entities who
was an obligor under the Cavendish Reference Obligation. The
appointment of the receiver constituted an event of default and
repayment of the Reference Obligation was accelerated. With
regard to both the Roade One loan and the Ambassador loan, the
servicer declared a credit event following the bankruptcy of the
respective borrowers.

"In a synthetic transaction, the issuer does not own the loans.
If a credit event occurs under a loan, the servicer would
typically enforce the loan security in order to work out the loan
and subsequently calculate the loan loss. This loss can consist
of principal and interest lost under loan plus enforcement costs
and any swap break fees. After the loss has been calculated, the
trustee will engage a third party, the verification agent, to
verify the loss. After the verification, the loss will be applied
to the notes in reverse sequential order," S&P said.

                          LOAN PORTFOLIO

"The Cavendish loan defaulted on the July 2011 interest payment
date. The property portfolio securing the loan consisted of 15
Halifax branches located across the U.K. Of the 15 properties,
the servicer has sold 12 at a price of GBP37.13 million. After
costs, the net recovery was GBP36.37 million (2% costs).
Moreover, the parties are close to selling the remaining three
assets for GBP5.68 million. If the three assets were sold at that
price, the total recovery would be GBP41.9 million. Compared with
a loan balance of GBP51.3 million, this would result in losses of
approximately GBP9.3 million, which would then be further
increased by enforcement costs. We estimate that the loss
severity from the loan could be higher than 20%," S&P said.

"The Roade One loan was secured by a portfolio of 18 mixed-use
assets (20 at closing), which were located across the U.K. A
bankruptcy credit event occurred with regard to the loan on July
29, 2011, following breaches of the loan-to-value and issuer
credit rating covenants, which constituted events of default
under the loan. Up until this time, interest had been paid in
full under the loan," S&P said.

"After the credit event, Drivers Jonas, in its capacity as
property advisor, sold 17 of the remaining 18 assets. The
combined price for the sold assets was GBP58.6 million. Net
receipts were GBP57.94 million (after 1.2% selling costs). The
last remaining asset is under offer for GBP500,000. Moreover, the
swap was terminated as of Sept. 28, 2011, incurring hedge break
costs of GBP14.2 million, which will increase the loss," S&P
said.

"The total recovery will likely be around GBP58.4 million. After
allowing for enforcement costs and the swap break fees, the loss
severity of the GBP80.1 million loan could be in the region of
50%," S&P said.

"The Ambassador loan is a seven-year interest-only loan that
expires in October 2013. The loan is secured by a mixed-use
portfolio initially comprising 12 retail assets and four office
assets across the U.K. A bankruptcy credit event occurred in
August 2011 with regard to the loan and the servicer subsequently
broke the hedging arrangement and incurred swap break costs of
GBP18.2 million," S&P said.

"The parties have sold three assets and exchanged contracts for
another seven. The combined net receipts of the three assets as a
percentage of the day 1 value was 52%. Applying a similar market
value decline to the remaining assets leads us to believe that
the loss severity for this loan could also be around 50% after
allowing for swap break fees and enforcement costs," S&P said.

"The two largest loans, Colombina and Lavincino, are currently
performing in accordance with their respective loan documents.
The loans have a combined securitized balance of GBP220.5 million
and are backed by office and retail assets in central London,"
S&P said.

                           RATING ACTIONS

"Following completion of the work-out process of the Roade One
loans and with that of the Cavendish loan being near completion,
we believe the losses from these two loans will affect the class
D, E, and F notes. We have therefore lowered our ratings on all
of these classes to 'CCC- (sf)'," S&P said.

"Additionally, the recovery from the Ambassador loan will, in our
opinion, lead to further losses that could also affect the class
A, B, and C notes. We have therefore lowered our ratings on these
classes to 'B- (sf)', 'CCC+ (sf)', and 'CCC (sf)'," S&P said.

"The combined recoveries from these three loans, together with
the expected repayments under the Lavincino loan and the
Colombina loan, will likely not be sufficient to repay the class
A notes in full, in our view," 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 asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

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

                http://standardandpoorsdisclosure-17g7.pdf

RATINGS LIST

Class        Rating
         To          From

Prominent CMBS Conduit No. 2 Ltd.
GBP454.3 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Lowered

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


TITAN EUROPE 2007-3: S&P Cuts Rating on Class A2 Notes to 'CCC-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Titan Europe 2007-3 Ltd.'s class A1 and A2 notes. "At the same
time, we placed our rating on the class A1 notes on CreditWatch
negative. In addition, we have affirmed our ratings on the class
B, C, D, E, F, and G notes," S&P said.

"The rating actions follow the interest shortfall that occurred
on the class A2 to G notes on the July 2012 payment date, and
reflect our assessment of the issuer's ability to pay interest on
all of the notes on future payment dates," S&P said.

"As reflected in the July 2012 cash manager report, the class A2,
B, C, D, E, F, and G notes experienced interest shortfalls.
Although the existing interest shortfall on the class A2 notes is
minor, in our view, we believe that the risk of additional
interest shortfalls on this class has increased. We also think
that the issuer's ability to service senior classes of notes has
deteriorated, given the reported performance of the underlying
pool of loans and the deal cash-flow mechanics, in a low
interest-rate environment. In light of these factors, we now
believe that the class A1 notes have become more vulnerable to
cash flow disruptions in the future. Therefore, the likelihood of
an event of default on this class of notes has increased, in our
opinion," S&P said.

"We understand that the transaction has been progressively
deferring unpaid interest since October 2008. This is because the
excess spread, which is distributed to the class X notes, is not
available to mitigate notes' interest shortfalls resulting from
partial interest collections on the underlying pool of loans or
from certain prior-ranking expenses. The issuer relies on
servicer advances to address timely payment of interest on the
notes. However, the transaction documents indicate to us that the
back-up advancer is not allowed to make servicing advances to
cover interest shortfalls under the notes, if such shortfalls
have resulted from," S&P said:

    Extraordinary expenses payable to the transaction parties
    (e.g., special servicing fees or special servicing expenses);
    or

    The reduction of servicing advances, if required to meet
    interest shortfalls under any of the loans, following the
    determination of an appraisal-reduction amount (the
    appraisal-reduction mechanism was structured to prevent
    drawings on the portion of the securitized loans that
    represents more than 90% of the securitized loan).

"In our opinion, interest shortfalls become more difficult to
manage for senior classes of notes in general in low interest-
rate environments because, all else being equal, the subordinated
interest available to absorb interest shortfalls diminishes," S&P
said.

"Titan Europe 2007-3 is a U.K. commercial mortgage-backed
securities (CMBS) transaction that closed in August 2007 and is
currently secured on 13 U.K. commercial real estate loans. The
legal maturity date of the notes is October 2016," S&P said.

                          RATING ACTIONS

"The rating actions have not resulted from a change in our
opinion of the probability of default and likely recovery
prospects of the remaining pool of loans backing the transaction.
Our ratings in this transaction address timely payment of
interest, payable quarterly in arrears, and payment of principal
not later than the legal final maturity date in October 2016,"
S&P said.

"We have therefore lowered to 'CCC- (sf)' from 'B (sf)' our
rating on the class A2 notes. We have not lowered our rating on
the class A2 notes to 'D (sf)', because the existing shortfall is
minor, in our view," S&P said.

"We have also lowered to 'BB (sf)' from 'A (sf)' our rating on
the class A1 notes because we see this class of notes as being
vulnerable to interest shortfalls and therefore as no longer
commensurate with an investment-grade rating. Further rating
actions on the A1 and A2 classes of notes would be likely if
further interest shortfalls occur. We have placed the rating on
the class A1 notes on CreditWatch negative owing to uncertainty
over potential for continued interest shortfalls, which we
believe could eventually lead to an event of default under this
class of notes," S&P said.

"The class B, C, D, E, F, and G notes, which have already
experienced interest shortfalls on previous payment dates, are
rated 'D (sf)'. We have affirmed our ratings on these classes of
notes," S&P said.

            POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES

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

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

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

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

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

              STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

    http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class                Rating
           To                       From

Titan Europe 2007-3 Ltd.
GBP778.822 Million Commercial Mortgage-Backed Floating-Rate Notes

Rating Lowered and Placed On CreditWatch Negative

A1         BB (sf)/Watch Neg        A (sf)

Rating Lowered

A2         CCC- (sf)                B (sf)

Ratings Affirmed

B          D (sf)
C          D (sf)
D          D (sf)
E          D (sf)
F          D (sf)
G          D (sf)


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


* Moody's Says Euro Area Economic Shocks to Hit CEE & CIS States
----------------------------------------------------------------
Some economies in Central and Eastern Europe (CEE) and, to a
lesser extent, in the Commonwealth of Independent States (CIS)
could potentially be negatively affected by further economic
stress emanating from the euro area, says Moody's Investors
Service in a report published on Aug. 29. These conclusions are
based on an econometric assessment of the numerous linkages and
transmission channels between CEE and CIS countries and the euro
area.

The new report is entitled "CEE and CIS Countries Could be
Affected by Possible Euro Area Economic Shocks, Albeit to Varying
Degrees".

Moody's report assesses the potential short- to medium-term
effects of any further negative economic shocks from the euro
area on some economies in the CEE and CIS by using the
econometric technique of Vector Auto Regression (VAR) to examine
three possible channels of transmission: trade, foreign direct
investment and bank flows. The report does not speculate on the
likelihood of further economic shocks occurring or on how these
may materialize.

As part of its analysis, Moody's has grouped CEE and CIS
economies into three categories to take account of the different
levels of institutional integration with the euro area: (1) the
EU member states in the CEE that are not members of the euro
area, (2) EU accession countries in the CEE, and (3) economies in
the CIS that are often referred to as the EU's "Eastern
Neighbourhood."

By applying the VAR technique, Moody's arrived at the following
estimates of the likely extent to which the three categories of
CEE and CIS economies might be affected by any further economic
stress emanating from the euro area:

- The CEE region's EU economies that are not members of the euro
   area have a high average sensitivity and would be
   significantly affected by further euro area developments.

- EU accession countries in the CEE would, to varying degrees,
   also be affected by further euro area shocks.

- While the economies in the EU's Eastern Neighbourhood are the
   least exposed compared with the other two groups, they would
   nevertheless be affected by euro area shocks, despite the
   absence of the comprehensive integration frameworks that are
   available to EU and accession countries.

Debt ratings currently assigned to sovereign governments covered
by this report reflect Moody's current economic forecast for the
euro area, which calls for a slight contraction in 2012 and weak
recovery next year. Although not Moody's central scenario, this
report suggests that a deep and prolonged contraction in the euro
area following an intensification of the current crisis would
likely have negative rating implications for some countries in
the CEE region and possibly in the CIS. Rating implications
arising from such a situation would ultimately be a function of
each country's shock absorption capacity, fiscal position and
debt profile, as well as the effectiveness of the country's
policy response to manage the economic and financial pressures
that would arise from a severe economic disruption in the euro
area.


* BOOK REVIEW: John Hood's The Heroic Enterprise
------------------------------------------------
Author: John Hood
Publisher: Beard Books, Washington, D.C. 2004
(reprint of book published by The Free Press/Division of Simon
and Schuster in 1996).
246+xx pages
Price: $34.95 trade paper
ISBN 1-58798-246-3

Hood writes as a counterbalance to ideas that business should be
expected to contribute to the common good along the lines of
charities, say, or public health.  He writes too against the
highly partisan, pernicious perspective that business activity is
antisocial and disruptive which at times gains some degree of
credibility.

Critiques of business have been around as long as commerce and
business have been around.  These come usually from religious or
political zealots seeking dictatorial hold over all significant
kinds of human activity and enterprise.  In this work, Hood aims
to counterbalance latter-day versions of such critiques arising
in American society.  The counterculture, antiestablishment 1960s
was a time when such critiques were particularly strong.  They
have moderated since, yet remain a persistent chorus which
influences politics and imagery and public affairs of business.

Hood does not aim to stifle or eliminate debate about the effects
of business on society or how business should engage in business.
What he aims for is dismissing once and for all myopic and almost
utopian conceptions about business and related erroneous purposes
and values of it.  Such conceptions are worrisome to
businesspersons not because they believe they have any
foundation, but because they waste resources and energy in having
to continually correct them so business can function properly.
And to the extent such myopic conceptions are believed or
entertained by the public, they hamper the public and politicians
in working out policies by which the greatest benefits of
business can be reaped by society.

The author clarifies the place and role of business by
contrasting business with other parts of society.  A standard,
self-evident tenet of sociologists going back to the time of
Plato is that society is made up of different parts fulfilling
different roles for the varied needs of society and so that a
society will function smoothly and survive.  Business is
distinguished from government and philanthropy.  "Businesses
exist to make and sell things," whereas by contrast "governments
exist to take and protect things [and] charities exist to give
things away."  The social responsibility for each category of
institution is inherent in its purposes and activities.  For
example, businesses alone cannot solve environmental problems.
Whatever problems which can be attached to business are related
to government policies and business's operations to satisfy
consumer interests.  Hence, business alone cannot solve
environmental problems, and should not be expected to.  Critics
requiring that business solve environmental problems without
similarly requiring changes in government policies and consumer
interests are shortsightedly and unreasonably tarnishing business
while not making any relevant or productive arguments for dealing
with environmental problems.

In elucidating business's proper place in and contributions to
society, Hood is not unmindful that some businesses fail to
fulfill their role in good faith and beneficially.  But instead
of criticizing business fundamentally, he proffers questions
critics can ask before targeting particular businesses.  Two of
these are "Are corporations obtaining their profits through force
or fraud?," and "Are corporations putting investments at their
disposal to the most economically productive use?"  Hood's
perspective in support of business against unfair and irrelevant
criticisms is based on the acknowledgment that business is
operating productively, for the common good, and is open to
cooperative activities with other parts of society in trying to
resolve common problems.

"The Heroic Enterprise" is not an argument for business -- for as
a fundamental aspect of any society, business does not need an
argument to justify it.  The book mostly takes the approach of
reviewing why business is necessary and therefore must be
naturally, easily accepted -- namely, because of the manifold
benefits business provides for society and because it along with
good government and respectable morals has been a primary engine
for the betterment of human life.

John Hood has much experience in the media and communication as a
syndicated columnist, TV commentator, and radio host.  Author of
three books and many articles for national publications such as
the Wall Street Journal, he is President and Chairman of the John
Locke Foundation in North Carolina.


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *