TCREUR_Public/120912.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Wednesday, September 12, 2012, Vol. 13, No. 182

                            Headlines



D E N M A R K

FIH ERHVERVSBANK: Moody's Affirms 'E+' BFSR; Outlook Negative


F R A N C E

FAURECIA SA: Moody's Affirms 'Ba3' CFR; Outlook Stable
PICARD GROUPE: S&P Affirms 'B' Corp. Credit Rating; Outlook Pos.
PLASTAL HOLDING: Faurecia Acquires Remaining Plant in France


G E R M A N Y

ADAM OPEL: GM Vice Chairman Pledges to Fix Carmaker
CONTINENTAL AG: Moody's Assigns 'Ba3' Rating to Bond Issuance
FORCE 2005-1: S&P Affirms 'B-' Rating on Class D Notes


H U N G A R Y

ELSO MAGYAR: Juice Maker Hey-Ho Goes Into Liquidation


I R E L A N D

KEDCO: Seeks Debt-for-Equity Swap
TREASURY HOLDINGS: Barrett to Buy China Units in Installments


I T A L Y

CREDITO ARTIGIANO: Fitch Withdraws 'BB+' LT Issuer Default Rating
* Fitch Monitors Certain Transactions From Italian Banks


K A Z A K H S T A N

EASTCOMTRANS LLP: Fitch Raises LT Issuer Default Ratings to 'B'
KAZEXPORTASTYK JSC: Fitch Affirms 'B' LT Issuer Default Ratings


L I T H U A N I A

BANKAS SNORAS: Administrator Recovers LTL1.2-Bil. Assets


N E T H E R L A N D S

BRUCKNER CDO I: S&P Cuts Ratings on Two Note Classes to 'CCC-'
LYONDELLBASELL: Moody's Says Reduced PE Ownership Credit Positive


R U S S I A

ALFA BOND: Fitch Rates Sub. Loan Participation Notes 'BB+(EXP)'
RUSHYDRO JSC: Fitch Affirms 'BB+' LT Issuer Default Ratings
SIBUR HOLDING: Moody's Upgrades CFR/PDR to 'Ba1'; Outlook Stable
STATE TRANSPORT: S&P Assigns 'BB-/B' Counterparty Credit Ratings


U K R A I N E

FORUM BANK: Moody's Withdraws 'E+' Bank Financial Strength Rating


U N I T E D   K I N G D O M

ALLDERS LTD: Failure To Find Buyer Forces Final Closure
BRADFORD BULLS: Omar Khan Saves Club From Liquidation Threat
CABOT FINANCIAL: Moody's Assigns '(P)B1' Corporate Family Rating
CABOT FINANCIAL: S&P Assigns 'BB-' LT Counterparty Credit Rating
CHESTER FESTIVALS: Goes Into Voluntary Liquidation

JJB SPORTS: Decathlon No Interest to Acquire Stores
STUDENT SEED: In Administration, Owes GBP611,876


X X X X X X X X

* EUROPE: German Court to Rule on EU Stability Mechanism Today
* Moody's Sees Growing Indirect Impact of EU's Woes on Asian Cos.


                            *********


=============
D E N M A R K
=============


FIH ERHVERVSBANK: Moody's Affirms 'E+' BFSR; Outlook Negative
-------------------------------------------------------------
Moody's Investors Service has affirmed FIH Erhvervsbank A/S's B1
long-term debt and deposit ratings and E+ standalone bank
financial strength rating (BFSR), equivalent to a b2 standalone
credit assessment.

The affirmation follows the transfer in July 2012 of part of
FIH's loan book (DKK12.4 billion of property related loans) to a
subsidiary of Financial Stability, the government-backed vehicle
mandated to take over, sell and winddown struggling Danish banks.
Moody's believes that the transfer is credit positive for FIH as
it reduces refinancing risk on FIH's government-guaranteed debt.
However, the affirmation and continued negative outlook reflect
the challenges that FIH continues to face, in particular with
respect to profitability, asset quality and funding.

Moody's also downgraded the bank's junior subordinated debt
ratings to Caa1(hyb) from B3(hyb). The outlook for all long-term
ratings remains negative. The bank's Not Prime short-term
ratings, and the Aaa rating on FIH's government-guaranteed debt
issuances are unaffected by this announcement.

Ratings Rationale

Affirmation of Debt and Deposit Ratings

The transfer of FIH's commercial property portfolio was part of
the Danish government's support package "Bank Package V", which
has assisted FIH by allowing it to reduce refinancing needs and
consequently facilitate its continued SME lending. The package
will likely prevent further disturbance in the commercial real-
estate market by reducing the need for FIH to deleverage through
demanding repayment of outstanding loans in order to be able to
repay maturing debt.

The bank however continues to face operational challenges. In H1
2012, the bank reported a loss of DKK203 million (EUR27.3
million), reflecting elevated provisioning, albeit mostly on the
part of the loan book that has been identified as discontinued
operations. On continued operations, pro forma pre-tax profits
amounted to only DKK6 million compared with DKK 18 million in H1
2011.

Following the transfer of the real estate loans, the bank's
problem loan ratio stood at 13.9% at end-June 2012, and Moody's
expects this ratio to remain elevated as the Danish economy
continues to contract. The transfer of the real-estate portfolio
removes many problematic exposures from FIH's balance sheet.
However, FIH and its holding company will continue to cover any
downside to Financial Stability, by FIH providing a DKK 1.65
billion deficit absorbing loan to Financial Stability, and FIH
Holding (the holding company owning the shares of FIH)
guaranteeing for any deficit not covered by the deficit absorbing
loan. As a result, further weakness in the real-estate market
could lead to further losses, ultimately impacting the bank's
performance.

With respect to funding, the portfolio transfer has addressed a
substantial part (39%) of the bank's refinancing needs up to end-
2013, when all its government-guaranteed debt will have matured.
However, substantial refinancing risk continues to exist because
the bank lacks access to unsecured financing. Whilst the bank has
increased its deposit funding to DKK9.1 billion at end-June from
DKK5.5 billion at end-June 2011, these internet deposits may
prove volatile and price-sensitive.

In addition, Moody's says that FIH's B1/E+ debt and deposit
ratings continue to include one notch of uplift from their b2
stand-alone credit assessment. However, Moody's has amended this
uplift to reflect systemic support, following the explicit
support provided to the bank through Bank Package V, rather than
parental support as previously included. This reflects the fact
that the support that was provided to the bank did not originate
from its owners, and that FIH's use of the DKK10 billion
liquidity facility that ATP provides (as FIH's largest owner), is
restricted.

Ratings Rationale/Downgrade of Hybrid Ratings

The downgrade of FIH's hybrid ratings reflects Moody's view that
bank hybrid securities in Denmark do not benefit from any
systemic support. In Denmark, hybrid debt has incurred losses in
several bank restructurings, without government interference.
Moody's has therefore downgraded FIH's hybrid ratings by one
notch to Caa1(hyb) from B3 (hyb), following the move to systemic
rather than parental support in Moody's debt/deposit ratings of
FIH.

Methodologies Used

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

Headquartered in Copenhagen, Denmark, FIH Erhvervsbank reported
total consolidated assets of DKK82.2 billion (EUR11.1billion) at
end-June 2012.



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


FAURECIA SA: Moody's Affirms 'Ba3' CFR; Outlook Stable
------------------------------------------------------
Moody's Investors Service has affirmed the Ba3 Corporate Family
Rating ("CFR") of Faurecia S.A. Concurrently, Moody's has
assigned a B2 (LGD6-92%) rating to the convertible notes due
January 2018 proposed by Faurecia S.A. The outlook on the ratings
is stable.

Ratings Rationale

The proposed convertible notes worth up to EUR250 million
constitute unsubordinated and unsecured obligations of the issuer
Faurecia S.A. Noteholders have the right, but are not required,
to convert their notes at their option for new or existing shares
of Faurecia S.A. The issuer is the parent company of Faurecia
group and a holding company. It does not own or operate tangible
assets and therefore relies on funds provided by its operating
subsidiaries to service its financial obligations.

The B2 rating of the proposed convertible notes is two notches
below Faurecia's Ba3 CFR which reflects their structural
subordination to the financial obligations of Faurecia S.A.'s
operating subsidiaries including financial debt, trade payables
and pensions, as well as to the EUR490 million of guaranteed
notes and the EUR1,150 million revolving credit facility issued
by Faurecia S.A. which benefit from upstream guarantees of
operating subsidiaries representing approximately 73% of group
EBITDA for the last-twelve-months period ended June 2012.

Faurecia intends (i) to extend the average maturity of its debt
and to diversify its financing resources with the proposed
issuance and (ii) use the proceeds of this issuance for general
corporate purposes and, in particular, to finance its business
expansion plans.

The Ba3 corporate family rating (CFR) is supported by Faurecia's
solid business profile. In particular, Moody's views (i) the
large size of Faurecia's operations, (ii) its global presence,
(iii) solid market positions (among top three players in relevant
markets according to management data) and (iv) established
customer relationships with most of the global original equipment
manufacturers (OEMs) as credit strengths. However, Faurecia is
strongly reliant on cyclical new light vehicle production volumes
as it lacks any non-automotive activities and a material
aftermarket business. Moreover, the group is strongly exposed to
its European home market where it generated 59% of product sales
in the first half of 2012 and to core customers Volkswagen (A3,
positive outlook) and Peugeot (Ba2, rating under review for
downgrade). The rating also reflects the general risks to which
virtually all automotive suppliers are exposed, i.e. high level
of competition and strong bargaining power of OEM customers. The
Ba3 CFR balances Faurecia's poor profitability and weak credit
metrics in the past against improvements in 2010 and 2011 which
Moody's attributes not only to the rebound in global car
production volumes but also to structural improvements at
Faurecia. The assigned CFR is based on Moody's opinion that
Faurecia will maintain these improvements and sustainably achieve
EBIT-margins of at least 2% and debt/EBITDA close to or below 4x
on a Moody's adjusted basis. Moody's calculates debt/EBITDA of
3.8x and an EBIT-margin of 3.1% for the last twelve months period
ending
June 30, 2012.

Moody's views Faurecia's relationship with majority shareholder
Peugeot S.A. (PSA) (rated Ba2, rating under review for downgrade)
primarily as a commercial challenge given the weak operating
performance of PSA. Because Faurecia has managed to substantially
reduce its exposure to PSA such that it accounted for only 14% of
revenues in the first six months of 2012, Moody's believes
Faurecia can manage this challenge. However, Moody's cautions
that the recent weakening of PSA's credit profile could create a
potential source of additional risk should PSA turn to Faurecia
for financial support. The rating continues to reflect Moody's
expectation that financing arrangements of Faurecia and PSA
remain separated in future. This view considers Faurecia's
responsibilities to its minority shareholders and that Faurecia's
existing credit agreements place limits on the payment of
dividends and the incurrence of additional debt. As at June 30,
2012, PSA holds 57% of Faurecia S.A.'s shares and 73% of the
voting rights.

The proposed issuance will help improve Faurecia's liquidity
profile such that Moody's would consider it to be adequate for
the rating category in Moody's view if the maximum issue amount
of approximately EUR250 million can be successfully placed. As of
June 2012, Faurecia had a sizeable cash position of EUR800
million and available commitments of EUR730 million under its
existing EUR1,150 million core credit facility (EUR690 million
mature in November 2014 and EUR460 million mature in November
2016). However, the company also had sizeable short-term debt
maturities (EUR725 million) and off-balance sheet short-term
factoring activities (EUR377 million). Moody's views positively
that Faurecia was able to rely on its relationship banks during
the 2009 recession and also that according to management data its
factoring arrangements worked well also in the middle of the
industry downturn. However, Moody's notes that Faurecia's core
credit facilities also contain conditionality language in the
form of financial covenants.

The stable outlook reflects Moody's view that Faurecia will be
able (i) to maintain EBIT-margins of at least 2% and debt/EBITDA
close to 4x or lower on a Moody's adjusted basis through the
cycle and (ii) come close to break-even free cash flow in 2013
with clear visibility of positive free cash flow thereafter.

What Could Change The Rating Up/Down

A rating upgrade would be considered should Faurecia manage to
achieve (i) EBIT-margins of 3% or higher, (ii) positive Free Cash
Flow generation, and (iii) a debt/EBITDA ratio below 3.5x through
the cycle on a sustainable basis. An improvement of Faurecia's
liquidity profile is also a critical consideration for an
upgrade.

Downward pressure on the rating would arise in case of a
deterioration in earnings and cash flow generation reflected in
recurring negative Free Cash Flow or EBIT-margins below 2%. In
addition, pressure on the rating could evolve should debt/EBITDA
rise again materially above 4x or if the availability of short-
term liquidity lines and/or factoring capacity for Faurecia
reduces significantly.

The principal methodology used in rating Faurecia S.A. was the
Global Automotive Supplier Industry Methodology published in
January 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.


PICARD GROUPE: S&P Affirms 'B' Corp. Credit Rating; Outlook Pos.
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on France-
based retailer Picard Groupe S.A.S. to positive from stable and
affirmed its 'B' long-term corporate credit rating on the
company.

"We also raised our issue rating to 'B' from 'B-' and revised our
recovery rating to '4' from '5' on the EUR300 million senior
notes due 2018 issued by one of Picard's holding companies,
Picard BondCo S.A.," S&P said.

"The outlook revision reflects Picard's consistent track record
of strong operating performances throughout the economic cycle
owing to steady growth and profitability levels which compare
well with peers. We now view the group's business risk profile as
'satisfactory,' as our criteria define the term, compared with
our previous assessment of it as 'fair.' We could raise the
group's rating by one notch over the next 12 months, taking into
account
its revised business risk profile, if operating performance
remains healthy and if the group manages to improve its interest
cover ratio to a level commensurate with a higher rating," S&P
said.

"Under our base-case scenario, we expect Picard to continue to
display solid operating performances over the next 12 to 18
months despite challenging market conditions. We also believe
that the company's operating resilience will enable it to sustain
solid FOCF generation and adequate liquidity, despite our
expectation of ongoing high leverage. Our base-case scenario for
fiscal 2013 (ending in March) includes low- to mid-single digit
revenue growth
and a stable reported EBITDA margin," S&P said.

"We might upgrade Picard if the adjusted EBITDA-to-interest ratio
exceeded 2.5x, which corresponds to a ratio of about 3x excluding
the accruing interests on the PIK notes. This would suppose the
group's market share continuing to increase, like-for-like
revenue growth remaining positive, and profitability staying at
current elevated levels," S&P said.

"We might revise the outlook to stable if the current trend of
positive operating developments appeared unsustainable or if
financial policy became more aggressive, potentially resulting in
a weakening of financial metrics or liquidity. Failure to improve
the interest coverage ratio in line with our expectations for a
higher rating could also result in a revision of the outlook to
stable," S&P said.

"At a time when most food retailers' results are deteriorating,
Picard has demonstrated good resilience. Its revenues have grown
steadily thanks to a combination of new openings and robust like-
for-like growth. As a result, Picard's market share has increased
consistently over the past 20 years, reaching 18.5% in 2011.
Furthermore, the group has maintained solid profitability despite
difficult economic conditions in France and volatile commodity
prices. It has demonstrated its ability to negotiate better
purchasing terms with its suppliers, and control its operating
costs while expanding its store network," S&P said.

"Picard's business risk profile remains constrained by its lack
of geographic diversification--96% of its revenues came from
France in 2012. That said, the home consumption segment of the
French frozen food market has so far exhibited limited
volatility, displaying a decline equal to or less than 1% only
three times since 1991. We remain cautious, however, considering
that austerity and rising unemployment will squeeze French
households over the next 12 months," S&P said.

"We continue to view Picard's financial risk profile as 'highly
leveraged,' since deleveraging prospects are limited. The
repayment of banking debt will be offset by the growing weight of
accruing interest instruments, namely payment-in-kind (PIK) notes
and mandatory redeemable preferred shares (MRPS). As a result, we
forecast that Picard's adjusted debt-to-EBITDA ratio will remain
close to 8x over the next 24 months, unless repayments exceed the
current schedule. On the positive side, Picard should keep
generating strong free operating cash flows (FOCF), thanks to its
high profitability and its limited capital expenditure (capex)
needs. A further support for the group's financial risk profile
and rating is its interest cover ratio, which reached 2.3x on
March 31, 2012," S&P said.


PLASTAL HOLDING: Faurecia Acquires Remaining Plant in France
------------------------------------------------------------
Plasteurope.com reports that 250 employees at Plastal Holdings
AB's plant in Hambach/France can finally breathe a sigh of relief
after it was acquired by French automotive company Faurecia.

Plasteurope.com relates that the group's insolvency administrator
announced on September 3 that the French plant had joined a
string of other Plastal facilities that have become part of
French automotive giant Faurecia.  This means the financial
restructuring of the German group has now been wrapped up.

Over the course of the last few years, Plasteurope.com notes,
Faurecia acquired most of Plastal's plants in a piecemeal
fashion, starting with the group's six German sites as well as
its operation in Spain.  This approach, according to
Plasteurope.com, has safeguarded all the sites' operations as
well as the almost 3,000 employees whose livelihoods had been
threatened by the insolvency.

As reported in the Troubled Company Reporter-Europe on March 11,
2009, the Board of Directors of Plastal Holding AB on March 9,
decided to file for bankruptcy at the Moelndal district court,
Sweden.  The company has suffered a severe liquidity crisis
due to the sharp downturn in the automotive industry and the
distressed financial markets.

The company's German unit, Plastal Holding GmbH, also filed for
insolvency, putting 2,200 jobs at risk, in March 2009, the TCR-
Europe reported citing Plastics Information Europe.



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


ADAM OPEL: GM Vice Chairman Pledges to Fix Carmaker
---------------------------------------------------
Dorothee Tschampa at Bloomberg News reports that for General
Motors Co. Vice Chairman Steve Girsky, it's sink-or-swim time.

As a GM director, the former president of Centerbridge Industrial
Partners LLC opposed the sale of the Opel unit in 2009, Bloomberg
recounts.  After being appointed to head GM's European operations
in July, the Wall Street veteran is taking direct responsibility
for making that decision work, and he's committed to fixing the
German carmaker, Bloomberg notes.

"We're going to support this company and this brand, and we're
going to give Opel tools to help them be successful," Bloomberg
quotes Mr. Girsky as saying in his first interview since taking
the post.  "You can't have a mindset that it's OK to lose a
billion a year.  That's the mindset we're trying to change."

The appointment as interim European chief puts Mr. Girsky at the
center of the Detroit automaker's efforts to make its Opel unit
profitable after GM racked up US$16.8 billion in losses in the
region since 1999, Bloomberg says.  With European auto deliveries
poised to drop this year to the lowest level since 1995, Opel's
persistent losses have cast a shadow over GM's emergence from
bankruptcy, Bloomberg states.

GM, restructured in a 2009 bankruptcy backed by US$50 billion in
U.S. funding, has shown little progress in stabilizing Opel,
Bloomberg notes.  European losses before interest and taxes
totaled US$617 million in the first half, after a profit of
US$107 million a year earlier, Bloomberg recounts.  GM also wrote
down US$590 million of goodwill in Europe in the first half,
Bloomberg discloses.

Opel and its U.K. sister brand Vauxhall have suffered more than
other manufacturers from the debt crisis, Bloomberg relates.

To reverse the slide, GM plans to expand Opel's lineup by
introducing 23 models by 2016, including the Mokka compact
crossover in October, Bloomberg says.

Mr. Girsky, who had served as GM Europe president for less than
seven months, now spends about three weeks a month in Germany as
he searches for a permanent replacement to run Opel and GM's
European operations and works on stemming Opel's losses,
Bloomberg discloses.

The executive, who was appointed vice chairman in March 2010 and
oversees GM's global strategy and business development,
acknowledges that the automaker hasn't completely figured out the
formula to fix Opel even after years of restructuring efforts,
which included the 2010 closure of a factory in Antwerp, Belgium,
Bloomberg notes.

"We don't have all the answers yet, but we're doing a much better
job of getting our arms around the situation," Mr. Girsky, as
cited by Bloomberg, said.  "We need to get a cost structure that
allows the company to break even at low levels of the market,
just like we did in the U.S. Opel needs to ultimately earn its
way."

That likely means more factory closures, Bloomberg states.

Adam Opel GmbH -- http://www.opel.com/-- is General Motors
Corp.'s German wholly owned subsidiary.  Opel started making cars
in 1899.  Opel makes passenger cars (including the Astra, Corsa,
and Vectra) and light commercial vehicles (Combo and Movano).
Its high-performance VXR range includes souped-up versions of
Opel models like the Meriva minivan, the Corsa hatchback, and the
Astra sports compact.  Opel is GM's largest subsidiary outside
North America.


CONTINENTAL AG: Moody's Assigns 'Ba3' Rating to Bond Issuance
-------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating and a loss-
given-default (LGD) of 4 to Continental AG's proposed senior
secured notes with a minimum amount of US$500 million. The bonds
are issued by Conti's wholly owned subsidiary Continental Rubber
of America, Corp ("CRoA") benefitting from an unconditional and
irrevocable guarantee of Continental AG (Ba3 with a stable
outlook) and certain of its subsidiaries. Conti's Ba3 corporate
family rating (CFR) and Ba3 probability of default rating (PDR)
are not affected. The outlook on all ratings is stable.

Ratings Rationale

"The rating reflects that the planned bond will be
unconditionally and irrevocably guaranteed by Continental AG and
certain subsidiaries which in aggregate represent around 85% of
group EBITDA and 86% of total assets for the twelve-months period
ended 30 June 2012. Consequently, the rating of the bond is at
the same level as the parent's corporate family rating" says Falk
Frey, a Moody's Senior Vice President and lead analyst for Conti.

Continental's current leverage with debt/EBITDA of 2.4x and
profitability with EBIT-margins of 9.1% for the last twelve
months ended June 30, 2012 would indicate a higher rating in the
high Ba category, than the currently assigned Ba3 rating.
However, its rating is held back by the uncertainty associated
with the possible form and pace of a potential combination of
Continental AG and its major shareholder Schaeffler (rated B2
stable), which reportedly has a high debt level following its
investment in Conti.

At this time, Moody's sees the risk to noteholders is mitigated
primarily by financial covenants in the bond and loan
documentation that restrict Conti's ability to (i) dispose of the
rubber group, or (ii) merge with entities of the Schaeffler
group, unless certain interest coverage and leverage tests are
met with regard to metrics pro-forma for the respective
transactions as well as (iii) a restriction on the total dividend
payout.

In addition, the successful refinancing of Schaeffler's debt
structure in the first quarter of 2012, including the reduction
of its stakeholding in Conti from 75% (directly and indirectly
via 2 banks) to 60% might lengthen the timeframe for a potential
combination with Conti. Schaeffler's strong improvement in
operating performance reported for financial years 2010 and 2011
and the expectation that this development would be sustained
going forward should also lead to an improvement of Schaeffler's
credit profile over time. Nevertheless, Moody's would expect to
re-assess the position of all lenders if and when major corporate
transactions are agreed upon.

Conti is currently very strongly positioned in its rating
category, and credit metrics on a standalone basis would justify
a higher rating. The stable outlook, however, incorporates the
ongoing uncertainties with regard to the the high debt load of
Conti's major shareholder Schaeffler, which is rated B2/stable.
The stable outlook also incorporates the expectation and future
ability of Conti to pay out more sizeable dividends, which would
have a negative effect on its cash flow generation ability.

A rating upgrade for Conti's ratings would also depend on the
further development of the capital structure and leverage of its
majority shareholder, Schaeffler. A rating upgrade would require
either a positive rating trajectory of Schaeffler or the removal
of the pending uncertainty about how the Schaeffler/Conti
relationship will develop further. Absent of these factors
Conti's ratings could be upgraded should (i) the company be able
to further reduce its leverage, exemplified by Debt/EBITDA as
adjusted by Moody's towards 2.0x (per last twelve months as of
June 2012: 2.4x); (ii) free cash flow generation of EUR500
million as defined by Moody's materialise in the current year,
which has been burdened by the pay out of a EUR300 million
dividend in 2012; (iii) interest coverage to remain above 3.0x as
well as (iv) RCF/Net Debt remain above 25%.

A downgrade of Conti's ratings could be envisaged should
operating performance and leverage deteriorate materially below
2010 levels exemplified by (i) Debt / EBITDA as adjusted by
Moody's approaching 4.0x; (ii) a free cash flow generation below
EUR200 million; (iii) a decline in the reported adjusted EBIT
margin below 7% as well as in case of any re-leverage resulting
from a combination with Schaeffler.

As of June 30, 2012, Conti's liquidity needs for the next 12
months resulting from debt maturities as well as cash outflows
for capital expenditure, working capital and day to day needs
would be covered by a sizable cash position (around EUR1.4
billion as of 30 June 2012), the proceeds from the envisaged bond
issuance and its revolving credit facility with conditionality
language and covenants with sufficient headroom.

At the same time, Moody's notes that Conti has a sizeable debt
maturity of a term loan in an amount of EUR2.9 billion and
revolving credit facility with a commitment of EUR2.5 billion in
2014. The current rating incorporates Moody's expectation that
these will be refinanced well in advance before they fall due.
The envisaged bond issuance is a first step towards this target
as proceeds will be used to repay part of Conti's term loan
outstanding under the syndicated facility agreement dated
August 22, 2007.

Structural Considerations

Moody's ranks Conti's indebtedness which is secured by bank
guarantees, such as a EUR300 million loan provided by EIB, at the
top of the debt waterfall ahead of all other creditors. The
currently EUR3.0 billion worth of notes issued by Conti-Gummi
Finance B.V., the newly issued bonds by Continental Rubber of
America, Corp. and the debt outstanding under the syndicated
facility agreement which all benefit from upstream guarantees and
are secured by share pledges, intercompany loans and cash pool
accounts rank in line with all unsecured creditors, trade
debtors, pension obligations as well as lease rejection claims at
the lower end of the debt waterfall.

The principal methodology used in rating Continental Rubber of
America Corporation was the Global Automotive Supplier Industry
Methodology published in January 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.

Headquartered in Hanover, Germany, Continental AG is one of the
top automotive suppliers worldwide in the areas of brake systems,
systems and components for powertrains and chassis,
instrumentation, infotainment solutions, vehicle electronics,
technical elastomers as well as the world's fourth-largest
manufacturer of passenger and commercial vehicle tires. In the
last twelve months ended June 30, 2012, Continental generated
consolidated sales of approximately EUR32 billion.


FORCE 2005-1: S&P Affirms 'B-' Rating on Class D Notes
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
FORCE 2005-1 Limited Partnership's (FORCE 2005-1) class A, B, C,
and D notes.

"The affirmations follow our performance review of the FORCE
2005-1 transaction using the latest available investor report of
August 2012 and portfolio data provided to us by the investment
advisor. The affirmations reflect that the credit enhancement
available to the rated notes is commensurate with the current
ratings," S&P said.

"In particular, the affirmations reflect the stable performance
of the transaction since our last review. One principal
deficiency event (PDE) has occurred since our last review,
causing a temporary increase in the principal deficiency ledger
(PDL) balance from EUR5 million to EUR7.4 million. However, this
balance was fully cleared on the February 2012 interest payment
date using available proceeds. The current balance of the PDL--
which represents the aggregate notional amount of principal
deficiencies incurred in the portfolio minus all amounts used to
redeem the notes--is zero, compared with a PDL balance of EUR5
million at our previous review," S&P said.

"In order to reduce the PDL balance, the issuer continued to use
available proceeds to repay the notes on each quarterly payment
date in order of seniority starting with the class A notes. This
has resulted in a further reduction in the class A notes'
outstanding principal amount by EUR13.9 million since our
previous review. The current outstanding balance of the class A
notes is about 63.35% of its initial balance," S&P said.

"As of the latest investor report, there are currently 41
obligors remaining in the portfolio (excluding PDEs and
repayments). The largest obligor accounts for about 5.3% of the
remaining portfolio amount. We note that the profit participation
arrangement (PPA) for one of the largest obligors has been
amended and now allows for partial repayment of the principal
amount on its due date in January 2013, with a postponement of
the remaining amount. The 10 largest obligors make up about 44.7%
of the remaining portfolio balance. Consequently, in our view,
the rated notes are exposed to significant idiosyncratic risk
resulting from single obligor defaults and our ratings in this
transaction are therefore more sensitive to single obligor
defaults than those in transactions with more granular
portfolios," S&P said.

"We have analyzed the effect of defaults of the largest obligors
in the portfolio. In this analysis, we first calculate the
performing balance of the assets, excluding PDEs and repayments.
In the next step, we look at top obligor concentrations and
evaluate the net effect of subsequent defaults on the performing
balance. Finally, we examine whether the post-default balance
is sufficient to cover the current outstanding balance of the
notes (taking into account all note repayments that have been
effected since closing). Given the subordinated nature of the
issuer's claims under the PPAs, in our analysis we have assumed a
recovery rate of zero for the PPAs that have triggered a PDE. Our
analysis of the obligor coverage levels indicates that the
coverage levels have remained stable since our last review," S&P
said.

"All assets in the portfolio have bullet maturities either in
October 2012 or January 2013. This exposes the FORCE 2005-1
transaction to significant refinancing risk. According to the
information in the latest investor report, EUR33 million of the
remaining portfolio balance of EUR284 million (exclusive of PDEs
and repayments) is currently classified by the investment advisor
as being either under 'special care management' or 'special
attention.' This indicates various performance issues with
regards to these obligors. These issues range from possible
liquidity shortfalls to losses, but also include one restructured
PPA to allow for the partial repayment of principal at maturity,
as outlined above. An additional EUR26 million of assets carry an
'early warning' classification by the investment advisor, which
is the first sign of deteriorating performance. We have taken the
investment advisor's views on these companies into account in our
review. We have concluded that in light of the fact that the PDL
is clear, the total size of the unrated class E1 and E2 notes
currently provides sufficient support to absorb losses from
possible defaults of these obligors," S&P said.

"FORCE 2005-1 is a German small and midsize enterprise (SME)
collateralized loan obligation (CLO) transaction. The underlying
collateral comprises the issuer's payment claims against German
SMEs under PPAs. If the company becomes insolvent, the issuer's
claims under the PPAs will be subordinated to the claims of all
other creditors of the company, but will rank ahead of the
shareholders' claims," S&P said.

RATINGS LIST

Class             Rating

FORCE 2005-1 Limited Partnership
EUR370.5 Million Floating-Rate Notes

Ratings Affirmed

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



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


ELSO MAGYAR: Juice Maker Hey-Ho Goes Into Liquidation
-----------------------------------------------------
MTI Econews, citing Napi Gazdasag, reports that Elso Magyar
Gyumolcsfeldolgozo es Gyumolcslegyarto, maker of the popular Hey-
Ho brand of fruit juice, is going under liquidation after two
failed rounds of talks with creditors.

According to MTI Econews, the paper said a request for the
initiation of a liquidation procedure against the company has
been filed with a court in Kecskemet.

MTI Econews relates that Roland Horvath, the mayor of Ersekhalma
(SW Hungary), where the company is based, told the paper that the
company owes creditors HUF1.7 billion, and business partners and
employees a further HUF1.9 billion.



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


KEDCO: Seeks Debt-for-Equity Swap
---------------------------------
Vincent Ryan at Irish Examiner reports that Kedco is
restructuring its finances in a bid to raise more money from
investors to unlock the value in future projects.

Kedco, Irish Examiner says, is looking to remove the debt from
the company's balance sheet and have its creditors take an equity
stake in the company.

The Kedco group will remove EUR10.8 million in debt from the
group, as well as selling its 80% stake in SIA Vudlande, a
Latvian saw mill, Irish Examiner discloses.

As part of the plan, some of the lenders will write off 40% of
the interest owed, Irish Examiner says.  All of the group's
lenders will convert outstanding loan capital into a stake in the
company, Irish Examiner states.

Kedco noted in its interim results from December 2011 that if it
was not able to secure funding, it could be forced to cease
trading, Irish Examiner relates.

"Kedco noted that its ability to continue as a going concern was
contingent upon additional finance being made available for the
company's working capital requirements and a successful outcome
to debt restructuring initiatives undertaken by the group," Irish
Examiner quotes Kedco as saying.

Mr. Madden, as cited by Irish Examiner, said that, like many
businesses, Kedco had faced a tough couple of years but with the
backing of its creditors it has a more positive future.

Kedco is a Cork-based renewable energy group.


TREASURY HOLDINGS: Barrett to Buy China Units in Installments
-------------------------------------------------------------
Donal O'Donovan at Independent.ie reports that businessman
Richard Barrett is paying in installments for the Chinese
companies he controversially bought from Treasury Holdings last
week.

According to the report, Treasury Holdings agreed to sell two
Chinese subsidiaries to Mr. Barrett for EUR2.26 million last
week, just as the company faced liquidation at the hands of
creditor KBC Bank.

Independent.ie relates that Mr. Barrett is one of the two owners
of Treasury, along with businessman Johnny Ronan.

The report says the companies which have just been sold manage a
huge Chinese property portfolio on behalf of Treasury China
Trust, a Singapore-listed investment vehicle 30% owned by Messrs.
Barrett and Ronan.

Independent.ie relates that the last-minute nature of the deal,
combined with the fact that financial details were not initially
disclosed, prompted Treasury's biggest creditor, NAMA, to join
KBC in seeking to have the company liquidated.

The report notes that Mr. Barrett has defended the transaction
saying. Mr. Barrett said the sale meant Treasury's problems in
Ireland would not trigger value destruction in Asia by prompting
creditors there to call in loans owed by linked companies.

Mr. Barrett said the price paid was fair and was the higher of
two independent valuations, so there was no question of assets
being stripped from Treasury Holdings, Independent.ie adds.

According to Independent.ie, the High Court has already asked
Treasury Holdings to provide a detailed report into the
circumstances of the Chinese asset sale.  It is due to be handed
in next week, the report notes.

The wider battle between Treasury and its creditors is due to
resume in court in Dublin on October 9, Independent.ie discloses.

As reported by the Troubled Company Reporter-Europe on Aug. 29,
2012, Independent.ie related that KBC Bank is seeking the
appointment of a liquidator to shut the company and sell off its
assets over an unpaid debt of EUR70 million.  The debt is KBC's
share of EUR300 million of loans that financed the Spencer Dock
developments in Dublin's IFSC, Independent.ie said.  The bulk of
the debt is owed to National Asset Management Agency,
Independent.ie noted.  On Monday, lawyers for Treasury tried to
block the move, Independent.ie related.  They want the court to
delay making any decision to allow time for negotiations between
the parties and US bank Morgan Stanley, which has offered more
than EUR160 million for the properties secured on the debt,
Independent.ie disclosed.  Treasury, as cited by Independent.ie,
said liquidation would jeopardize 300 jobs in Ireland, and 100
jobs abroad.

                     About Treasury Holdings

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



=========
I T A L Y
=========


CREDITO ARTIGIANO: Fitch Withdraws 'BB+' LT Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn Credito Artigiano's
ratings.  The withdrawal follows the legal completion of the
merger of Credito Artigiano into Credito Valtellinese
('BB+'/Negative/'B').

As a result of the group reorganization, Credito Artigiano has
ceased to exist as a separate legal entity.  Prior to withdrawal,
Credito Artigiano's ratings were affirmed.  For ratings rationale
refer to "Fitch Downgrades 7 Italian Mid-sized Banks; Affirms 2"
dated August 28, 2012 at www.fitchratings.com.

The rating actions taken are:

  -- Long-term Issuer Default Rating (IDR): affirmed at 'BB+'
     with a Negative Outlook and withdrawn

  -- Short-term IDR: affirmed at 'B' and withdrawn

  -- Support Rating: affirmed at '3' and withdrawn

Credito Artigiano was a 100%-held subsidiary of Credito
Valtellinese serving as a distribution channel, mainly in
Lombardy.  Its IDRs were equalized to those of the parent bank
Credito Valtellinese to reflect the integration into the group
and its strategic importance.


* Fitch Monitors Certain Transactions From Italian Banks
--------------------------------------------------------
Fitch Ratings says that it is monitoring the actions of the
parties to the structured finance (SF) deals that are associated
with the Italian banks that were recently downgraded.

The banks perform the role of servicer in the related SF
transactions and therefore a downgrade in their Issuer Default
Ratings (IDRs) indicates an increased risk of servicer
discontinuity, especially for those banks that are no longer
rated at investment grade.  To mitigate this risk, the
transaction documentation envisages remedial actions, such as the
appointment of a back-up servicer, being taken upon the downgrade
of the servicer below a certain rating threshold, typically set
at 'BBB-'.

Following the downgrade, Fitch contacted the relevant parties
involved in the SF transactions to understand whether effective
remedial actions will be implemented.  The agency has been
informed that all the affected banks have initiated, themselves
or through the back-up servicer facilitators (where appointed),
the process of identifying and appointing a back-up servicer, in
line with the transaction documentation.

Fitch expects the back-up servicers to be engaged in the coming
weeks and will provide an update and comment further upon the
completion of the appointments.

The transactions being monitored are:

Banca Carige ('BB+'/Negative/'B') for Argo Mortgage S.r.l. and
Argo Mortgage 2 S.r.l.

Banca Popolare di Milano ('BBB-'/Negative/'F3') for BPM
Securitisation 2 S.r.l.

Fitch notes that Banca Popolare di Milano (BPM) is hedging
guarantor in Carismi Finance S.r.l. and Pontormo Mortgages
S.r.l., and that Banca Akros (part of the BPM group) continues to
post collateral in line with Fitch's Structured Finance
Counterparty Criteria.

Banca Popolare di Vicenza ('BB+'/Negative/'B') for Berica
Residential MBS 1 S.r.l., Berica 5 Residential MBS S.r.l., Berica
6 Residential MBS S.r.l., Berica 8 Residential MBS S.r.l. and
Berica 9 Residential MBS S.r.l.

Credito Valtellinese ('BB+'/Negative/'B') and Credito Artigiano
S.p.A. ('BB+'/Negative/'B') for Quadrivio Finance S.r.l.,
Quadrivio RMBS 2011 S.r.l. and Quadrivio SME 2012 S.r.l.

Veneto Banca S.c.p.a. (unrated; ratings of 'BB+'/Negative/'B'
withdrawn on 31 August 2012) for Claris Finance 2007 S.r.l.,
Claris Finance 2008 S.r.l., Claris RMBS 2011 S.r.l. and Claris
SME 2011 S.r.l.



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


EASTCOMTRANS LLP: Fitch Raises LT Issuer Default Ratings to 'B'
---------------------------------------------------------------
Fitch Ratings has upgraded Kazakhstan-based Eastcomtrans LLP's
(ECT) Long-term foreign and local currency Issuer Default Ratings
(IDR) to 'B' from 'B-', and National Long-term Rating to
'BB(kaz)' from 'B+(kaz)'.  The Outlook on the ratings is Stable.

RATING ACTION RATIONALE: ECT'S Long-term IDR

The upgrade reflects ECT's decreasing dependence on a single
client, Tengizchevroil LLP (TCO, secured notes rated
'BBB'/Stable), the longer average term of contracts, and achieved
franchise growth without deterioration of credit metrics.

As ECT has diversified its client base, the share of ECT's
revenue that TCO accounted for decreased to 63% in H112 from 76%
in 2011 and over 80% in 2010. ECT continues to grow its fleet,
retaining a strong position in the Kazakh rolling stock market.
ECT also benefits from a relatively young fleet (four years) and
solid credit metrics.

In 2011-2012, ECT successfully extended all its major contracts.
The contracts with TCO were rolled over to end-2015 and contracts
with some of the company's other large clients have also been
extended for another one to two years.  The average tenor of the
contracts reached three years at end-2011.

As of end-August 2012, ECT's fleet had expanded to over 9,600
cars from over 3,000 at end-2010.  2011-2012 growth was achieved
with fairly stable credit metrics.  The company has maintained
comfortable leverage for the rating level.  Fitch expects total
debt/EBITDA below 3.5x at end-2012.  The newly-acquired wagons
were immediately contracted out to existing and new customers on
a long-term basis.

RATING DRIVERS: ECT'S Long-Term IDR

ECT's ratings reflect the company's still quite small and
concentrated franchise, dependence on a limited number of funding
sources, limitations on the risk management framework and
potential corporate governance risks and limited capital
flexibility resulting from the ownership structure.  At the same
time, the ratings also consider the company's sound performance
to date, currently comfortable capitalization and liquidity, and
the absence of any sharp refinancing spikes in the debt maturity
schedule.

ECT remains highly reliant on a single individual who owns the
company, and may have limited capacity to provide support in the
form of new capital in case of negative market shifts.  With its
growing client base, ECT needs to develop its risk management
function, particularly with respect to liquidity management and
counterparty risk assessment.

Despite the growth and a number of new customers, counterparty
and asset concentration remain an issue.  The five largest
clients provide 90% of the company's revenues: oil tanker cars
represent 58% of ECT's fleet.  On the funding side, ECT attracted
new bank facilities in 2012 but the debt profile is still
dominated by bank syndicates (two tranches) which is a function
of ECT's small size.  ECT has plans to enter capital market via
bond placement in 2012-2013 (subject to market conditions).

The company's expansion was funded though long-term amortizing
facilities (with a pledge over the cars) and capital leasing.  As
of end-2011, the company's entire fleet was pledged against
existing loan facilities.  During 2012, ECT has refinanced some
of its existing funding agreements, releasing pledges over around
1,100 cars.

As of end-H112, liquidity was comfortable with a stable cash
stream and a US$5.5 million overdraft available.  Fitch expects
ECT's annual free cash flow in the near to medium term to
sufficiently cover the company's liquidity needs.  However, rapid
growth accompanied by a significant increase in leverage or a
sharp decline in utilization could give rise to a cash deficit in
the medium term.

RATING SENSITIVITIES: ECT'S Long-Term IDR

Further extension of the average contract term, greater franchise
diversification without a marked deterioration of credit quality
and more diversified funding would be rating positive.

A considerable and unexpected decline of utilization and lease
rates or a speculative acquisition of another leasing company or
portfolio with weaker credit metrics would be negative for the
ratings.


KAZEXPORTASTYK JSC: Fitch Affirms 'B' LT Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed Kazakhstan-based JSC Holding
KazExportAstyk's (KEA) Long-term foreign and local currency
Issuer Default Ratings (IDRs) at 'B' and National Long-term
rating at 'BB(kaz)' with a Stable Outlook.  Fitch has also
affirmed its senior unsecured ratings at 'B-' and National senior
unsecured rating at 'B+(kaz)', with a recovery rating of 'RR5'
and removed the Rating Watch Negative (RWN) on these ratings.

The affirmation of KEA's IDR at 'B' reflects the agency's
expectations of its relatively strong financial performance in
FY12 due to favorable selling prices more than offsetting weaker
crop yields.  This follows two opposing forces potentially
affecting KEA's performance in 2012 -- a surge in global soft
commodity prices (positive) and poor harvest forecasts in
Kazakhstan (negative).  While H112 financial performance has been
stable, this is not representative of the full year outcome as
the key harvesting season only finishes in October.  Meanwhile
KEA has continued to improve its debt profile which resulted in
the removal of the RWN attached to its unsecured debt rating.

The IDR continues to reflect the group's moderate to high
business risks due to the cyclicality and seasonality of the
agricultural commodities sector, its reliance on one geographical
area and lack of any large scale vertical integration or
diversification beyond crop rotation and ancillary agricultural
services.

The affirmation of KEA's unsecured rating reflects the material
reduction in its secured debt, currently amounting to less than
one-third of total debt by July-August 2012, around the highest
seasonal peak in working capital, and hence debt, during the year
in contrast to a ca. 50/50 split in the beginning of 2012.
Management remains committed to maintain at least the current
share of secured debt thus underpinning the expected recoveries
available for unsecured creditors in a distress scenario, albeit
below-average, after the repayment of secured creditors' claims.

The notch down on the rating for the unsecured notes to 'B-'
relative to the IDR of 'B' reflects the still high level of
secured facilities in the capital structure that lead to below-
average recoveries for unsecured creditors, including the
noteholders.  Further improvement in the debt structure towards
unsecured debt by way of issuing additional domestic bonds to
refinance existing bank loans and, generally, fewer secured
credit lines, both drawn and undrawn, as well as general de-
leveraging, could increase recoveries for unsecured creditors.
This could lead to an upgrade in the senior unsecured recovery
rating to 'RR4' (this is, however, soft-capped at the IDR level
for Kazakhstan issuers due to country-specific treatment of
recovery ratings by Fitch).

What Could Trigger A Rating Action?

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

  -- Inability to maintain cash on balance sheet plus inventories
     and available undrawn committed facilities (as a percentage
     of short-term debt maturities) above 80%.

  -- Gross leverage (total lease-adjusted debt/EBITDAR) above 4x
     if combined with negative free cash flow both over a two-
     year rolling period.

Positive: Although Fitch considers further positive ratings
momentum to be limited until at least 2013, any future
developments that may, individually or collectively, lead to a
positive rating action include a combination of :

  -- Greater diversification through vertical integration, crop
     plantings and increased exports as a percentage of sales,

  -- Gross leverage below 2x (total lease-adjusted debt/EBITDAR)
     on a sustained basis with interest cover (operating
     EBITDAR/net interest expense plus rents) above 4x,

  -- Positive free cash flow after acquisition or dividends for
     at least two consecutive years

  -- Full coverage of short-term debt commitments on a forward-
     looking basis with available liquidity



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


BANKAS SNORAS: Administrator Recovers LTL1.2-Bil. Assets
--------------------------------------------------------
Milda Seputyte at Bloomberg News reports that the administrator
to Bankas Snoras AB recovered assets worth LTL1.2 billion
(US$440 million) for the bank's creditors since it was appointed
in December.

According to Bloomberg, the bank said in a statement on its
Web site on Monday that the administrator collected funds from
the bank's loan holders and recouped assets in 25 countries.

Snoras was declared insolvent in November after the central bank
discovered assets were missing at the lender, Bloomberg recounts.

                       About Bankas Snoras

Bankas Snoras AB is Lithuania's fifth biggest lender.  Snoras
held LTL6.05 billion in deposits and had assets of LTL8.14
billion at the end of September. It competes with Scandinavian
lenders including SEB AB, Swedbank AB (SWEDA), and Nordea AB.  It
also controls investment bank Finasta and Latvian lender Latvijas
Krajbanka AS.

As reported in the Troubled Company Reporter-Europe on Dec. 2,
2011, The Baltic Times, citing LETA/ELTA, said Vilnius District
Court accepted the application regarding the initiation of
bankruptcy proceedings against Snoras bank.  The Bank of
Lithuania delivered application on Snoras bankruptcy on Nov. 28,
2011.

The TCR-Europe, citing Bloomberg News, reported on Nov. 28, 2011,
that Lithuania's central bank said that Snora's financial
situation is "worse than previously identified" and saving the
bank "would cost significantly more and would take longer than
the available liquidity" at Snoras.  Governor Vitas Vasiliauskas
said at a news conference on Nov. 24 that some LTL3.4 billion
(US$1.3 billion) in assets are missing, according to Bloomberg.



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


BRUCKNER CDO I: S&P Cuts Ratings on Two Note Classes to 'CCC-'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on Bruckner CDO I B.V.'s
class A-1, A2-1, A2-2, B, C-1 (DEF), C-2 (DEF), D-1 (DEF), and D-
2 (DEF) notes.

"The rating actions follow our assessment of the transaction's
performance since our previous review on June 9, 2011, and the
application of our 2012 criteria for collateralized debt
obligations (CDOs) of pooled structured finance (SF) assets," S&P
said.

"We have performed our credit and cash flow analysis using the
latest available data at the time of our analysis (from the
monthly trustee report dated July 31, 2012). We have also applied
our 2012 counterparty criteria," S&P said.

On March 19, 2012, we placed on CreditWatch negative all of our
ratings on the notes in this transaction following our update to
the criteria we use to rate CDOs of SF assets, which became
effective on March 19, 2012," S&P said.

"Since our previous review, we have noted an increase to 9.15%
from 1.93% in the proportion of defaulted assets (rated 'CC',
'C', 'SD' [selective default], or 'D') in the collateral pool. In
addition, we have observed fewer investment-grade assets in the
collateral pool compared with our last analysis (now 53%, versus
65% previously)," S&P said.

"We subjected the capital structure to our cash flow analysis,
based on the methodology and assumptions outlined in our CDO of
SF assets criteria and our criteria for corporate cash flow CDOs,
to determine the break-even default rates for each class of
notes. 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
(WARR) that we considered to be appropriate. We incorporated
various cash flow stress scenarios using various default
patterns, levels, and timings for each liability rating category,
in conjunction with different interest rate stress scenarios,"
S&P said.

"In applying our 2012 CDO of SF criteria, we note that the WARR
(at each rating category) modeled in our cash flow analysis have
significantly reduced. For example, the WARR calculated at the
'AAA' rating level reduces to 9.75% from 30.49%," S&P said.

"We also determined the scenario default rate (SDR) for each
rating level, by using our CDO Evaluator 6.0 model. The SDR at
the 'AAA' rating level has increased by 37.86% since our last
review, based on our updated assumptions contained in our CDO of
SF assets criteria and negative rating migration of the pool,"
S&P said.

"As part of our analysis, we applied the largest obligor default
test and industry test as outlined in our criteria. Our
evaluation of the results indicates that none of 's rating
actions on the notes is affected by our supplemental stress
tests," S&P said.

"In our view, the impact of our 2012 CDO of SF criteria, combined
with the deteriorating credit quality of the underlying
portfolio, has meant that the levels of credit enhancement
available to all classes of notes are no longer commensurate with
their current rating levels. We have therefore lowered and
removed from CreditWatch negative our ratings on all classes of
notes in Bruckner CDO I," S&P said.

"We have analyzed the transaction's exposure to the transaction
participants, and consider that the participants are adequately
rated in accordance with our 2012 counterparty criteria to
support the highest ratings in the capital structure," S&P said.

Bruckner CDO I is a cash flow mezzanine SF CDO transaction that
closed in September 2004.

RATINGS LIST

Bruckner CDO I B.V.
EUR256.5 Million Secured Fixed-, Floating-, and Deferrable-Rate
Notes

Class         Rating          Rating
              To              From

Ratings Lowered

A-1           AA- (sf)        AAA (sf)/Watch Neg
A2-1          BB+ (sf)        BBB+ (sf)/Watch Neg
A2-2          BB+ (sf)        BBB+ (sf)/Watch Neg
B             B+ (sf)         BB (sf)/Watch Neg
C-1 (DEF)     B+ (sf)         BB- (sf)/Watch Neg
C-2 (DEF)     B+ (sf)         BB- (sf)/Watch Neg
D-1 (DEF)     CCC- (sf)       CCC+ (sf)/Watch Neg
D-2 (DEF)     CCC- (sf)       CCC+ (sf)/Watch Neg


LYONDELLBASELL: Moody's Says Reduced PE Ownership Credit Positive
-----------------------------------------------------------------
Moody's Investors Service views the reduction in equity ownership
by affiliates of Apollo Management as a modest credit positive
for LyondellBasell Industries N.V. (Ba1 Corporate Family Rating).
Further reductions in equity ownership by affiliates of is two
largest shareholders (Apollo Management and Access Industries)
could trigger change in outlook or rating for LyondellBasell.

LyondellBasell Industries N.V. is one of the world's largest
independent petrochemicals companies. It is a leading
manufacturer of olefins, polyolefins, propylene oxide and related
derivatives; it also has a large global licensing and catalyst
business (primarily related to polyolefins production
technologies). The Company also has a refinery with a total
capacity of 270 thousand barrels per day. LyondellBasell had
revenues of roughly $48 billion for the year ending June 30,
2012.



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


ALFA BOND: Fitch Rates Sub. Loan Participation Notes 'BB+(EXP)'
---------------------------------------------------------------
Fitch Ratings has assigned Alfa Bond Issuance plc's upcoming USD
subordinated issue of limited recourse loan participation notes
an expected 'BB+ (EXP)' rating.

The bonds' final ratings will be contingent on the receipt of
final documentation conforming to information already received.

The proceeds from the issue will be on-lent to OJSC Alfa-Bank
(Alfa), rated Long-term Issuer Default Rating (IDR) 'BBB-
'/Stable, Short-term IDR 'F3', Viability Rating 'bbb-', Support
Rating '4', Support Rating Floor 'B' and National Long-term
rating 'AA+(rus)'/Stable.

Alfa is the sole borrower under the subordinated loan agreement
and its obligations with respect to the notes will not be
guaranteed by its parent ABH Financial Limited (ABHFL,
'BB+'/Stable) and ABHFL's other subsidiaries.

Alfa is the largest privately-owned banking group in Russia by
assets.  It is ultimately owned by six individuals, with the
largest stakes held by Mikhail Fridman (36.47%) and German Khan
(23.27%).  For more details on Alfa's credit profile, see 'Fitch
Upgrades Alfa Bank to 'BBB-'; Assigns ABH Financial Limited
'BB+''.


RUSHYDRO JSC: Fitch Affirms 'BB+' LT Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed JSC RusHydro's Long-term foreign and
local currency Issuer Default Ratings (IDR) at 'BB+' and National
Long-term Rating at 'AA(rus)'.  The Outlook on the ratings is
Stable.  The agency has also affirmed RusHydro and RusHydro
Finance Limited's foreign currency senior unsecured ratings at
'BB+'.

RusHydro's ratings continue to be driven by support from its
parent, the Russian Federation ('BBB'/Stable), in accordance with
Fitch's Parent and Subsidiary Rating Linkage methodology.  Fitch
assesses RusHydro's credit strength as two notches below the
sovereign's due to the company's strategic importance, mandatory
state ownership, direct equity injections and significant
infrastructure investments from the state.

In May 2012, the Russian president delayed the earlier announced
partial privatization of RusHydro in 2012 by including the
company in the list of strategic enterprises.  The agency
believes that this decision is only a temporary phase-out of
RusHydro's privatization, as the state still plans to auction
stakes in a number of state-owned companies over 2012-2013.  The
government also aims to increase the value of privatized
companies to maximize sale proceeds.  Therefore, Fitch's view
remains that the state may fully privatize RusHydro by 2016.  The
agency will review its rating approach to RusHydro once the
timetable for its privatization becomes more certain.

Fitch views the 2011 consolidation from the state of a 69% stake
in OJSC RAO Energy System of the East (RAO UES East), which is
financially much weaker than RusHydro, as an example of state
involvement that has negative implications for RusHydro's
creditworthiness.  In 2011, RusHydro reported gross EBITDA
leverage of 1.7x, up from 1.2x in 2010, and FFO interest coverage
of 9.9x, down from 10.2x in 2010, partially due to the
consolidation. The agency anticipates further weakening of
RusHydro's credit metrics, primarily due to large capex.

Fitch views RusHydro's standalone profile as commensurate with
the mid 'BB' rating category.  With installed electric capacity
of 35GW and heat capacity of 16.2 thousand GCal/h, RusHydro is
one of the largest hydropower generation companies in the world
and one of the largest Russian power utilities.  RusHydro's
consolidated operating and financial profile worsened following
the consolidation of RAO UES East in 2011 due to the latter's
poor asset quality, fully regulated, but insufficient, 'cost
plus' tariffs, weak operating cash flows, high leverage and
short-term debt maturities.  In 2011, RAO UES East reported an
EBITDA margin of 10% (including subsidies), negative free cash
flows of RUB8.7 billion and gross unadjusted debt of RUB52
billion.  Following RAO UES East's acquisition, most of
RusHydro's generation revenue comes from regulated power and heat
sales and income from power and heat distribution, exposing the
company to non-market regulation risks.  Fitch expects that RAO
UES East's financial performance will remain a drag on RusHydro's
profitability and cash flows for at least the medium term.

Over 2009-2012, RusHydro received RUB26.1 billion in equity
injections from the state, mainly for the restoration of Sayano-
Shushenskaya hydro power plant (HPP), while RAO UES East received
RUB33bn in subsidies for sub-economic tariffs over this period.
Over the past few years, RusHydro has had good access to funding
from state-owned banks such as Sberbank of Russia ('BBB'/Stable)
and Vnesheconombank ('BBB'/Stable).  Fitch expects cash equity
injections from the state to cease and funding from state-owned
banks or corporations to become the principal method of financing
RusHydro's projects, in addition to its operating cash flows.
Together with clear privatization plans, this would contribute to
Fitch's reassessment of the government's support of the company.

Under its conservative ratings case, Fitch expects RusHydro's net
EBITDA leverage to deteriorate further to about 3x in 2012-2014,
and FFO interest coverage to about 4x by 2014, mainly due to its
partially debt-funded RUB290 billion capex over 2012-2014 to
modernise RusHydro's generating assets and to increase its
installed capacity by 4.9GW including RAO UES East.

Fitch views RusHydro's liquidity as sufficient and debt
repayments as manageable.  At March 31, 2012, RusHydro had
unadjusted consolidated debt of RUB141 billion, up from RUB124
billion at end-2011.  Short-term debt of RUB25.7 billion compared
well with RUB50.4 billion cash.  Fitch expects that RusHydro will
generate around RUB42 billion cash flows from operations (CFO) in
2012 before RUB96.4 billion in capex, dividends and other
outflows; and consequently probably need new external funding.
At end-2011, RusHydro needs to repay or refinance RUB55 billion
in 2013.

At end Q112, its borrowings mainly consisted of the RUB60 billion
Sberbank loans maturing in 2012-2017, RUB20 billion Eurobonds due
in 2015, RUB15 billion domestic bonds with a put option in 2016
and other bank loans.  RusHydro has large uncommitted credit
facilities with a number of principal Russian banks for RUB216
billion and a registered but unissued RUB40 billion domestic
bond.

Fitch maintains a stable outlook for Russian power and heat
utilities, which is mainly driven by the agency's expectation of
moderate electricity volume growth over the medium term, largely
on a par with Russian GDP, and flat heat volumes, and power and
heat price growth below the 15% indexation of the domestic
natural gas price.  The sector is characterized by a high level
of administrative involvement including various price control
mechanisms on electricity and capacity markets, fully regulated
prices for heat energy and distribution and large obligations of
utilities companies to commission new capacity.  Fitch expects
that Russian power companies will demonstrate better results in
H212 following the 15% gas price indexation on 1 July (and hence
higher unregulated power prices in H212) and regulated power and
heat tariff indexation on both 1 July and 1 September 2012.

What Could Trigger A Rating Action

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

  -- A positive change in the Russian Federation's ratings could
     be replicated for RusHydro's ratings, unless Fitch deems
     RusHydro's links with the state to have weakened at the same
     time.
  -- Significant deleveraging (compared to Fitch's expectations),
     and improvement of operational performance (including in
     tariff policy) on a sustained basis would be positive for
     the company's standalone credit profile and possibly the
     ratings.

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

  -- A negative change in the Russian Federation's ratings could
     affect RusHydro's ratings, unless Fitch deems RusHydro's
     links with the state to have strengthened at the same time.
  -- A weakening relationship between RusHydro and the Russian
     Federation, i.e., significant reduction of the state's share
     and/or lack of tangible support that may contribute to
     RusHydro's leverage exceeding 3x on a sustained basis would
     be negative for the rating.


SIBUR HOLDING: Moody's Upgrades CFR/PDR to 'Ba1'; Outlook Stable
----------------------------------------------------------------
Moody's Investors Service has upgraded to Ba1 from Ba2 the
corporate family rating (CFR) and probability of default rating
(PDR) of OJSC Sibur Holding (Sibur), Russia's largest
petrochemical company. The outlook on the ratings is stable.

Ratings Rationale

"The rating action was driven by Sibur's ability to maintain
strong credit metrics following the change in its ownership,
which had been accompanied by a step-up in debt, and our
understanding is that the new shareholders have endorsed and will
support the company's strategy and conservative financial
policies," says Sergei Grishunin, Moody's Assistant Vice
President -- Analyst and lead analyst for Sibur. The upgrade to
Ba1 was also driven by (1) Sibur's robust historical financial
performance through the cycle, which demonstrated the company's
resilience to downturns; and (2) Moody's expectation that the
company will continue to demonstrate strong financial metrics in
the next 12-18 months.

As a result of several transactions between December 2010 and
November 2011, a group of shareholders led by Mr. Leonid
Mikhelson purchased 100% of Sibur's share capital. The company's
beneficial ownership structure is now as follows: Mr. Leonid
Mikhelson -- 57.5%; Mr. Gennady Timchenko -- 37.5%; and a group
of current and former Sibur senior managers -- 5%. The
acquisition debt was pushed down to the Sibur level and, as of
end-2011, the company repaid most of it (approximately US$2.3
billion) using mainly US$1.8 billion in cash proceeds from the
sale of non-core assets. This repayment, coupled with record-high
revenue growth and profitability in 2011 and the absence of
substantial shareholder distributions (contrary to previous
Moody's expectations), helped the company to maintain
conservative financial metrics as of end-2011. These metrics
include low adjusted leverage (measured as debt/EBITDA) of 1.2x
(2010: 1.2x) and high adjusted interest coverage
(EBITDA/interest) of 17.8x (2010: 12.8x). Moody's understands
that the new shareholders have endorsed the company's existing
strategy, dividend policy and conservative financial policy,
which includes net debt/EBITDA through the cycle of below 2.5x
and EBITDA/interest expense of above 7.0x.

Historically, Sibur has demonstrated high profitability through
the cycle (with a five-year average adjusted EBITDA margin of
more than 30%), above that of many of its European peers. This is
underpinned by Sibur's competitive cost position, which in turn
is driven by the company's (1) access to low-cost-associated
petroleum gas and competitively priced liquid hydrocarbon
feedstock in Western Siberia; and (2) diversification into the
less profit-volatile business of selling natural gas, liquefied
petroleum gas (LPG), napthta and other related products and fuel
additives. In Moody's view, Sibur's competitive cost position,
coupled with a historically conservative financial profile (with
a five-year average adjusted debt/EBITDA ratio of 1.4x) and
adjusted retained cash flow (RCF)/debt of above 50%), provides
the company with a degree of resilience to down cycles. Moreover,
despite challenging global economic conditions and Sibur's
substantial ongoing capital expenditures, the rating agency
expects that the company will sustain its low cost position and
continue to demonstrate strong financial metrics in the next 12-
18 months, in line with its stated financial policy.

Moody's notes that Sibur's major investment projects -- including
its largest, the US$2 billion Tobolsk Polymer plant, to be
launched in first half 2013 -- are on schedule for completion in
2013/14. The Tobolsk plant will double Sibur's polymer production
and improve its vertical integration, underlying profitability
and cash flow generation.

Moody's understands that Sibur is currently considering a future
expansion of its polymer capacities in Tobolsk, beyond the
scheduled completion of the Tobolsk Polymer plant in 2013-14,
with a final decision expected no earlier than in 2013. It is
currently difficult to estimate the effect of such an expansion
on Sibur's financial profile. However, to prevent its financial
and liquidity profile coming under material pressure and as a
result deviating from its stated financial policy, Moody's would
expect Sibur to either postpone this capacity expansion or find
an alternative way of financing it (including equity) in the
event of a deterioration in the operating environment and/or
weaker-than-expected cash flow generation.

Sibur's ratings remain constrained by (1) its exposure to the
inherent risks of the petrochemical industry, i.e., price
volatility and cyclicality of demand; and; (2) the geographical
concentration of the company's operations in the Russian
Federation, where the political, business, legal and regulatory
risks exceed the global average.

The stable outlook reflects Moody's expectation that Sibur will
continue to adhere to its strategy of organic growth while
maintaining solid financial metrics in line with its stated
financial policy, and a strong liquidity position. The outlook
also assumes that Sibur will continue to implement its investment
projects as scheduled and on budget and return to positive free
cash flow generation in the next 12-18 months.

What Could Change The Ratings Up/Down

Positive rating pressure could develop if Sibur were to build a
track record of operating under the new shareholding structure
while adhering to its stated financial policies, capital
structure and capital usage. A rating upgrade would also require
the company to undertake further operational improvements and
capacity expansion, resulting in enhanced scale and product
diversification and/or a portfolio mix that is weighted towards
higher value-added output. In addition, an upgrade would require
that Sibur generates positive free cash flow on a sustainable
basis.

Downward pressure on the ratings would be likely to develop if
(1) weaker than than-anticipated conditions in Sibur's key
markets were to result in its leverage (measured of adjusted
debt/EBITDA) increasing to, and remaining, above 2.0x, its
adjusted EBITDA margins declining to, and remaining, below the
mid-20s in percentage terms, and its cash flow generation
deteriorating, with RCF/net debt falling below 20%; or (2)
material debt-financed expansion projects and/or acquisitions, or
debt-financed dividend payouts to shareholders or other
shareholder initiatives, were to lead to the company materially
deviating from its stated financial policies or above mentioned
financial thresholds.

Principal Methodology

The principal methodology used in rating Sibur Holding was the
Global Chemical Industry Methodology published in December 2009.

OJSC Sibur Holding is the largest integrated petrochemical
company in Russia, the Commonwealth of Independent States (CIS)
and Central and Eastern Europe (CEE) in terms of revenue. The
company operates in two business segments: feedstock &energy and
petrochemical. As of end-2011, Sibur reported revenue of
approximately USD8.5 billion (excluding the results of the
company's mineral fertiliser and tyre businesses, which it
divested in December 2011) and adjusted EBITDA of around USD3
billion.


STATE TRANSPORT: S&P Assigns 'BB-/B' Counterparty Credit Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-/B' long- and
short-term counterparty credit ratings to Russia-based OJSC State
Transport Leasing Co. (STLC). The outlook is stable. "At the same
time, we assigned an 'ruAA-' Russia national scale rating to the
company," S&P said.

"Our ratings on STLC reflect the company's strong capitalization,
robust asset quality, and good market-share in several niche
transportation leasing equipment segments," S&P said.

High industry concentration in its leasing portfolio, modest
earnings, and significant funding concentration offset these
positive factors, although funding concentration is decreasing.

"Under our criteria, STLC is a government-related entity (GRE).
We assess STLC's stand-alone credit profile at 'b+', and
incorporate one notch of uplift to reflect our opinion that the
likelihood of timely and sufficient extraordinary support from
the Russian government is 'moderate,'" S&P said.

"In accordance with our criteria for GREs, we consider STLC's
link with the Russian Federation to be 'strong' and we think STLC
has 'limited importance' for the Russian federal government," S&P
said.

"The stable outlook reflects our expectation of increasing
business growth for STLC, which will help improve diversification
of the leasing portfolio but will likely lead to downward
pressure on capitalization," S&P said.

"A negative rating action could be triggered by a significant
deterioration in STLC's asset quality through rapid expansion of
the business book and laxer underwriting standards. We would
consider lowering the long-term rating if the likelihood of
parental support weakened, in particular, if privatization were
to be implemented more rapidly than currently envisaged," S&P
said.

"We would consider a positive rating action if we observed a
sustainable growth of profitable commercial leasing business, a
substantial improvement in lease portfolio diversification, and
strong financial performance, with the maintenance of strong
capitalization. A positive rating action could also result if the
government provided a substantial capital injection, leading to
strong business growth and improvement in the company's financial
performance, as well as increased probability of government
support, thanks to a more important policy role for STLC," S&P
said.



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


FORUM BANK: Moody's Withdraws 'E+' Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the following ratings of
Forum Bank: standalone bank financial strength rating (BFSR) of
E+ mapping to a b3 baseline credit assessment, long-and short-
term global local and foreign currency bank deposit ratings of
B3/NP and National Scale Rating of Baa3.ua. All global scale
ratings had negative outlooks at the time of withdrawal.

Ratings Rationale

Moody's has withdrawn the rating for its own business reasons.

Forum Bank had no outstanding debt rated by Moody's at the time
of the withdrawal.

Headquartered in Kiev, Ukraine, Forum Bank reported total assets
of UAH10 billion (US$1.3 billion) and net loss of UAH815 million
(US$102 million) as of year-end 2011, according to its audited
IFRS financial statements.

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



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


ALLDERS LTD: Failure To Find Buyer Forces Final Closure
-------------------------------------------------------
DIY Week reports that Allders will to close down its business.

The failure of the store, which went into administration in June,
will result in the probable loss of around 850 full and part-time
jobs, according to DIY Week.

DIY week relates that administrators Duff & Phelps said they had
explored all potential options for the retailer's creditors,
including a sale of the business.  However, the one remaining
interested party has now backed out, the report says.

DIY Week notes that staff at the department store was told of the
closure.

". . . . the joint administrators of Allders (Croydon) Ltd have
announced that the Croydon-based department store is to close,
with the final day of trading anticipated to be Sept. 22, 2012. .
. .  The joint administrators, all of leading global financial
advisory and investment banking firm Duff & Phelps, were
appointed on June 15, 2012, and since their appointment have
explored all potential options to secure a buyer for the business
as a going concern and safeguard employment. . . . Although a
number of parties expressed interest during the marketing
process, no formal offer was received and the remaining
interested party withdrew their interest within the last 24
hours," Duff & Phelps said in a statement obtained by the news
agency.

The report notes that Croydon's Allders was the rump of what was
once a 50-strong chain of department stores, which collapsed into
administration in 2005.  Retail entrepreneur Harold Tillman took
over the Croydon flagship, but in 2010 it found itself facing
administration once again before being saved, the report adds.


BRADFORD BULLS: Omar Khan Saves Club From Liquidation Threat
------------------------------------------------------------
Sky News reports that Bradford Bulls Holdings Limited finally
banished the threat of liquidation when administrators confirmed
the sale of the financially stricken Super League club to local
businessman Omar Khan.

According to the report, Brendan Guilfoyle, joint administrator
at Bradford, revealed in a statement that he had completed the
sale of Bradford Bulls to OK Bulls Limited for an undisclosed
sum.

Sky News relates that the sole director of OK Bulls Limited is
Omar Khan, who owns the award-winning Bradford restaurants and
catering business under his name.

Gerry Sutcliffe, MP for Bradford South and a former Sports
Minister, is also involved with the business, the report relays.

Sky News discloses that Mr. Khan, who is thought to have paid
around STG150,000 to take the club out of administration,
tweeted: 'Omar Khan's and Gerry Sutcliffe Save the Bradford Bulls
are the new owners of the club.'

Mr. Guilfoyle, as cited by Sky News, added: 'This is a great
achievement for Bradford Bulls, the players, fans and the city of
Bradford.  My main duty as administrator is to get the best
return for creditors and this was the best deal on the table.'

As reported in the Troubled Company Reporter-Europe on June 29,
2012, The guardian said Bradford Bulls have entered
administration with a grim warning it will be liquidated unless a
white knight comes forward.  The guardian noted that Chris
Caisley, a former chairman, has been working with the other
remaining directors since Peter Hood resigned as chairman in May,
and is understood to have an agreement for the former coach Brian
Noble to return in a
management role, but they have so far failed to raise the seven-
figure sum necessary to secure the club's future.

Bradford Bulls -- http://www.bradfordbulls.co.uk/-- is a
professional rugby league club based in the city of Bradford,
England.


CABOT FINANCIAL: Moody's Assigns '(P)B1' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1
Corporate Family rating to Cabot Financial Ltd. (CFL), a company
purchasing past due consumer debt. Moody's has also assigned a
provisional (P)B1 rating to the proposed GBP265 million long
term, senior secured bond, to be issued by Cabot Financial
(Luxembourg) S.A. The outlook is stable on all ratings. This is
the first time that Moody's has rated CFL.

Ratings Rationale

The ratings are contingent upon CFL's success in placing the
proposed GBP265 million senior secured notes and completing the
planned recapitalization program, whereby it will use the
proceeds from the bond issuance to repay the existing senior
facility agreement and a partial repayment of shareholder loans
held by Cabot Credit Management (the ultimate holding company of
the group). CFL will also enter into a new five year revolving
cash facility agreement.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Upon a conclusive
review of the final versions of all the documents and legal
opinions, Moody's will endeavor to assign definitive corporate
family and senior secured ratings. A definitive rating may differ
from a provisional rating. The provisional ratings and the stable
outlooks assigned to CFL assume a successful refinancing of the
company's current financing package, as well as the confirmation
that the final set of documentation does not differ in any
relevant form or content from the draft documentation.

CFL operates in the UK consumer debt market as a purchaser of
consumer debt from the financial services industry. The company
acquires aged debt at a deep discount to the total outstanding
balance and uses in-house collections teams and a multi-channel
communications strategy (phone calls, SMS, emails etc) to contact
the debtors and start the process of debt collection. CFL also
acts as a debt collections agency, collecting on past due debt on
behalf of debt originators in the financial services industry.
However, the debt purchasing operations account for the majority
of CFL's activities.

The CFR of (P)B1 reflects CFL's strong market positioning, stable
operating cash flow and satisfactory level of debt service
capability and tangible common equity, as well as the monoline
business model, concentrated debt maturity profile, supplier
(i.e. debt originators) concentration and model risk in terms of
valuation and pricing of its purchased debt portfolio (i.e. the
risk of the models over-estimating projected cash flow generation
of a portfolio of purchased debt). The provisional rating also
reflects the projected increase in leverage as a result of the
proposed transaction, although it is expected to remain at a
relatively modest level.

Following the completion of the bond issuance, Moody's expects
CFL to have a satisfactory level of capital and modest amount of
leverage, consistent with the B1 rating levels. The proposed
funding structure is also expected to improve CFL's liquidity by
providing some funding source diversification and by lengthening
the maturity profile of its debt facilities. However, Moody's
noted the concentration in terms of the laddering of debt
maturities (i.e. the proposed revolving cash facility matures in
five years and the proposed secured bond issuance matures in
seven years), which could result in some refinancing risk.

CFL has displayed a good level of growth in its gross collections
over the past five years and its total operating cost-to-gross
collections ratio has consistently remained low. While operating
cash flow, prior to portfolio acquisitions, has remained strong
and relatively stable over the past few years, Moody's noted that
the performance at the net income level (both before and after
tax) has been less stable, mainly due to goodwill amortization
expenses. This factor however, may be somewhat mitigated by the
improvements in profitability projected for financial years 2012
- 2014 onwards, with the projected growth in gross collections
and lower goodwill amortization expenses. Although the interest
coverage is expected to decline as a result of rising interest
expenses with the proposed bond issuance, Moody's noted that
adjusted EBITDA-to-interest expense is expected to remain at a
satisfactory level, in line with the B1 ratings.

The receivables that CFL acquires are generally in arrears and
therefore are, in Moody's view, speculative in nature. In
addition to this, Moody's notes three key risks: (i) model risk
in relation to valuation and pricing of its purchased
receivables; (ii) concentration risk in terms of suppliers, and
(iii) risks arising from potential litigation actions or
regulatory events. In Moody's opinion, CFL's management is well
aware of the key risks arising from its business model.
Furthermore, the level of granularity of the portfolio of
purchased receivables helps to mitigate the model risk to a
certain extent and CFL's reliance on litigation for collection
purposes has been historically very low.

While purchased receivables are extremely granular in terms of
its customer accounts, Moody's noted that the company does have a
level of concentration in its suppliers (i.e. debt originators).
However, Moody's recognizes that this supplier concentration is a
feature common to debt purchasing companies, both in the UK and
the US, given the limited number of debt originators in the
market. Furthermore, CFL has good relationships with most of the
major debt originators in the industry.

The significant private equity ownership of the firm also brings
an element of uncertainty as regards the timing and method of
exit of the investment although Moody's expects AnaCap Financial
Partners to manage their exit without compromising the company's
strategy or financial positioning.

What Could Change The Rating Up/Down

Upward rating pressure could arise from a sustained improvement
in the leverage metrics (debt-to-adjusted EBITDA) to around 1.5x
-- 1.8x.

The rating could come under downward pressure due to (i)
significant deterioration in income from operations (after
interest expense) and cash flow from operations, stemming from
factors such as underperforming collections productivity,
underperforming portfolio acquisitions and lower than forecast
collections; or (ii) an increase in leverage or sustained decline
in operating performance, leading to a debt ratio which is higher
than 4.0 times adjusted EBITDA or a tangible common equity-to-
tangible managed assets ratio which is below 15%; or (iii)
significant decline in interest coverage, with an adjusted
EBITDA-to-interest expense ratio below 3.5x - 1.0x.

The principal methodology used in this rating was Finance Company
Global Rating Methodology, published in March 2012.


CABOT FINANCIAL: S&P Assigns 'BB-' LT Counterparty Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
counterparty credit rating to U.K.-based finance company, Cabot
Financial Ltd. (Cabot Financial). "We also assigned a 'BB' issue
rating and '2' recovery rating to the proposed GBP265 million
senior secured term notes to be issued by Cabot's wholly owned
subsidiary, Cabot Financial (Luxembourg) S.A. The outlook on
Cabot Financial is stable," S&P said.

"Cabot Financial is an intermediate nonoperating holding company
(NOHC) and a wholly owned subsidiary of Cabot Credit Management
Ltd. Our ratings on Cabot Financial reflect the credit profile
(group credit profile; GCP) of the consolidated group (Cabot) and
our view that its main operating subsidiary, Cabot Financial (UK)
Ltd., is 'core' to the group. The ratings on Cabot Financial also
reflects our view that there appears to be no material barriers
to cash flows from the operating subsidiaries to the NOHC once
the existing senior facilities are repaid," S&P said.

"Our assessment of the GCP reflects Cabot's monoline focus on the
U.K. distressed unsecured consumer debt purchase market. In our
opinion, this is subject to material reputational, regulatory,
and operational risks. The ratings also take into account the
increase in leverage (by debt to tangible equity) that would
result if the proposed senior secured bond is issued. Although we
expect the group to build on its track record of improving cash
flow generation, we anticipate that EBITDA coverage of cash
interest expense will remain weak for the ratings over the near
term. We also note that the current build-up phase of the
company's receivables portfolio constrains net cash flow
generation after we deduct acquisition spend. We view as positive
rating factors the group's leading market position, potential
economies of scale and revenue diversification through its
contingent debt collection activities, and emphasis on
semiperforming portfolios (i.e., over 50% of accounts have made a
payment in three of the past four months). These portfolios have
more-stable annuity-like cash flows," S&P said.

"Cabot is a leading purchaser of distressed consumer debt in the
U.K. Its primary focus is on retail banking institutions. In
addition to debt purchasing activities, Cabot has a smaller,
commission-based, debt collection business (on behalf of third
parties). This business stems from its merger with Apex Credit
Management in 2011 and its earlier acquisition of an Irish
operation. Cabot had a portfolio of receivables of about GBP280
million (fair value) at end-June 2012, and approximately 3.3
million customer accounts," S&P said.

"The stable outlook on Cabot Financial reflects our expectation
that Cabot's GCP will be supported by sustained growth in total
collections, leading to a gradual improvement in cash flow
coverage and leverage metrics. It also reflects our expectation
that there will be no barriers to cash flow within the group and
the 'restricted group' as defined in the proposed financing
structure will remain unchanged," S&P said.

"We could lower the ratings if debt to tangible equity failed to
decrease in the next two years closer to 2x or if cash flow
coverage of cash interest expense falls materially below the 4x
level. We could also lower the ratings if we see evidence of a
failure in Cabot's control framework, adverse changes in the
regulatory environment, or a worsening in collections against
management's expectations," S&P said.

"We consider the prospect of a positive rating action to be
remote at present. We could consider an upgrade if we observed a
material reduction in the company's leverage, sustained growth in
cash flow generation, and successful diversification into new
customer segments over time," S&P said.


CHESTER FESTIVALS: Goes Into Voluntary Liquidation
--------------------------------------------------
Michael Green at Chester Chronicle reports that the future of
arts events in the city of Chester was thrown into disarray with
the news that Chester Festivals is to go into voluntary
liquidation.

Chester Chronicle relates that since 2009, Chester Festivals has
been the organisation responsible for the programming and
delivery of the city's Summer Music Festival, autumn Literature
Festival, GobbleDEEbook (the Children's Literature Festival), and
the Chestival summer events programme.

The report says the organisation has promised that this October's
literature festival -- the programme for which has already been
announced -- will go ahead as planned.

Chester Chronicle notes that what happens after that, however,
remains unclear after the release of a statement from Chester
Festivals on September 4 which said:

"Chester Festivals Ltd is to go into voluntary liquidation as a
result of 'acute and irreversible' financial difficulties.

"The decision was taken by the charitable company's board of
directors after a detailed consideration of the current financial
situation."

Chester Chronicle quotes Sue Harrison, chairman of Chester
Festivals Ltd, as saying that: "Sadly, after considering all
advice available, we have unanimously reached the inescapable
conclusion that there was no other option to us. The company is
not in the position to continue trading."

The report adds that Ms. Harrison explained the 2012 Literature
Festival - which runs from October 14-28 - is now being
administered directly by Chester Performs, the organisation
behind the successful Grosvenor Park Open Air Theatre project.

Chester Festivals Ltd, a non-profit making organisation, is a
registered charity and company limited by guarantee. It employs
five members of staff.


JJB SPORTS: Decathlon No Interest to Acquire Stores
---------------------------------------------------
Jennifer Thompson and Andrea Felsted at The Financial Times
report that the list of prospective suitors for JJB Sports
narrowed on Monday after Decathlon, the French sporting goods
retailer, ruled itself out of acquiring any of the struggling
retailer's stores.

However, it also emerged that UK rival JD Sports Fashion
requested sales information for JJB, and is thought to be among
those looking at the company, the FT says, citing people familiar
with the situation.

According to the FT, Decathlon said it denied "any acquisition
project of JJB stores in England".

OpCapita, the private investment firm, also did not submit a bid
by Friday's deadline, the FT relates.  It is thought to want to
carry out more work on whether there is anything of JJB that
would be of interest, the FT notes.

Retail restructuring firm GA Europe is among groups that are
thought to have submitted offers, the FT discloses.

People with knowledge of the sports goods retailing market have
suggested that potential bidders are more likely to be interested
in a very slimmed down chain rather than the entire 180-store
estate, according to the FT.

As reported by the Troubled Company Reporter-Europe on Sept. 11,
2012, JJB said that it had asked KPMG, its adviser, to explore a
sale after it failed to secure enough funding to drive a
turnaround, and warned that its shares might be worthless. Any
sale is likely to be through a so-called pre-pack administration,
the pre-negotiated sale of an insolvent business sometimes
described as a phoenix from the ashes transaction, the
FT said.  It is also likely to be accompanied by significant
store closures, with possibly as few as 100 JJB stores remaining
after the deal, the FT noted.

JJB Sports plc -- http://www.jjbcorporate.co.uk/-- is a sports
retailer.  JJB Sports is a multi-channel sports retailer
supplying branded sports and leisure clothing, footwear and
accessories.  It operates out of over 185 stores across the
United Kingdom and Ireland with e-commerce offering.


STUDENT SEED: In Administration, Owes GBP611,876
------------------------------------------------
This is South Wales reports that The Post said Student Seed Ltd,
the company behind the 2012 Beach Break Live festival in Pembrey
County Park, went into administration with an estimated
GBP611,876 to unsecured creditors.

With Student Seed in administration, the assets and business of
Beach Break Live have been sold in a previously planned
administration deal, according to This is South Wales.

This is South Wales relates that Student Seed was sold to
director Ian Forshew through another limited company, Seed Events
Ltd on Aug. 3.

"There are no preferential creditors as employees were
transferred to Seed Events Ltd," the report quoted administrators
Cowgill Holloway Business Recovery as saying.

This is South Wales says that it is not believed that any local
suppliers are owed any money by Student Seed and Carmarthenshire
Council, which owns the country park, has confirmed it has been
paid for the park's use.

This is South Wales relays that the administrators have estimated
that there will be sufficient funds for a distribution to
creditors, but the amount cannot be confirmed until the
collection of the company's book debt has been completed.

It is understood there are trading expenses, creditors and
liabilities in respect of PAYE and VAT to the taxpayer, This is
South Wales notes.

Jason Mark Elliot, of Cowgill, was appointed administrator.

This is South Wales notes that Mr. Elliot said Student Seed Ltd
"relied heavily on the weather."

It had experienced an increase in costs in the last year which
had been "exacerbated" by the revenue for this year's festival
being "much lower than anticipated," This is South Wales relays.

However, This is South Wales discloses, a spokeswoman for the
music extravaganza said the festival would be returning in the
future despite the collapse of Student Seed.



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


* EUROPE: German Court to Rule on EU Stability Mechanism Today
--------------------------------------------------------------
Karin Matussek at Bloomberg News reports that Germany's top
constitutional court rejected a last-minute bid to delay a case
over the European Stability Mechanism, clearing the way for a
ruling on the EUR500 billion (US$640 billion) bailout plan today,
Sept. 12.

The Federal Constitutional Court in Karlsruhe said it would issue
its ruling on the ESM as scheduled at 10:00 a.m. today, without
further comment on the bid to delay the case by lawmaker Peter
Gauweiler.  He argued the court should delay the ruling after the
European Central Bank pledged unlimited funds to buy government
bonds, Bloomberg notes.

Germany hasn't ratified the ESM treaty and if it can't join the
mechanism won't be created, and other bailout measures might be
thrown into doubt, Bloomberg says.

The judges will rule today on whether Germany may ratify the ESM,
the final hurdle for the plan to rescue indebted euro- area
member states, Bloomberg discloses.


* Moody's Sees Growing Indirect Impact of EU's Woes on Asian Cos.
-----------------------------------------------------------------
Moody's Investors Service sees only a moderate, direct impact of
an expected European recession for most Asian (ex-Japan)
corporate issuers. However, the rating agency says that indirect
risks are rising as weak exports to the European Union (EU) are
contributing to a slowdown in Asia.

"Over 95% of our rated corporates in Asia (ex-Japan) should
remain resilient to the direct impact of the ongoing economic
turmoil in the EU because they generate less than 15% of their
reported 2011 revenue from there and have limited dependence on
European banks for funding," says Ping Luo, a Moody's vice
president & senior analyst.

Luo was speaking on Moody's release of a report to assess rated
Asian corporates' exposure to a looming EU recession. Luo and
Chris Park, a Moody's vice president & senior credit officer, co-
authored the report.

Moody's notes that, of 11 rated Asian corporates generating over
15% of their revenue in the EU, BW Group (Ba2 negative) and Tata
Steel (Ba3 negative) are most vulnerable, due to the two firms'
big European businesses and operational cyclicality.

The credit profile of other rated Asian (ex Japan) corporates
with large EU revenue exposure, such as Hutchison Whampoa (A3
negative) and Tata Motors (Ba3 stable), have experienced less
impact from the EU because their European-based operations have
shown resilience.

"However, a broader effect of Europe's stagnation on Asian
corporate issuers is increasingly visible across Asia, as slowing
exports to Europe contribute to a slower pace in Asia's economic
growth," Park says. He adds, "Firms in cyclical industries, such
as shipping, ports, consumer electronics, chemicals, mining, and
steel, are more susceptible to such unfavorable macro
fundamentals."

As a result, the percentage of Asian issuers with negative
outlooks increased to 22% as of June 2012 from 14% at year end
2011. Moreover, in the past few months, Moody's took negative
rating actions on a number of corporates in sectors exposed to
slowing regional demand and economic growth, such as Indonesian
coal miner Bumi Resources (B1 stable), and Korean steelmaker
POSCO (A3 review for downgrade).

The new report is entitled, "Direct Impact of Looming EU
Recession Is Still Moderate for Most Asian Corporates (ex-
Japan)".


                            *********

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 * * *