TCREUR_Public/120914.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, September 14, 2012, Vol. 13, No. 184

                            Headlines



C Y P R U S

CYPRUS POPULAR: Commission Temporarily Approves Recapitalization


F R A N C E

CREDIT IMMOBILIER: Can't Refinance Due to Unjustified Ratings
SOCIETE NATIONALE: 2006 Bailout Manifests Assessment Error


G E R M A N Y

SOLARWATT AG: Creditors Back Reorganization Plan
TECHEM ENERGY: Moody's Assigns 'B1' Corporate Family Rating
TECHEM GMBH: S&P Assigns 'B+/B' Corporate Credit Ratings
WINDERMERE VII: Moody's Lowers Rating on Class D Notes to 'Caa3'


I R E L A N D

OMEGA CAPITAL: S&P Reinstates 'B' Ratings on Two Note Classes


I T A L Y

SEAT PAGINEGIALLE: S&P Raises Corporate Credit Rating to 'CCC'
SOPAF: UniCredit Wants to Commence Insolvency Proceedings


M A L T A

ST. PHILIP'S HOSPITAL: Owes Around EUR12 Million to Creditors


R U S S I A

VNESHECONOMBANK: S&P Assesses Stand-Alone Credit Profile at 'bb'


U N I T E D   K I N G D O M

DIXONS RETAIL: Moody's Rates GBP150MM Sr. Unsecured Notes 'B1'
ENPURE: Enters Administration, Ends Seawage Project
GKN HOLDINGS: S&P Assigns 'BB+' Rating to Euro Medium-Term Note
* Restructuring Vet Yushan Ng Joins Cadwalader's London Office


X X X X X X X X

* Moody's Says EMEA Spec-Grade Cos. Have Weak Liquidity Profile
* BOOK REVIEW: Ralph H. Kilmann's Beyond the Quick Fix


                            *********


===========
C Y P R U S
===========


CYPRUS POPULAR: Commission Temporarily Approves Recapitalization
----------------------------------------------------------------
The European Commission has temporarily approved a rescue
recapitalization worth EUR1.8 billion that Cyprus granted to
Cyprus Popular Bank for reasons of financial stability.  The
Commission found the measure to be in line with EU state aid
rules because it is limited to the minimum necessary and provides
safeguards to minimize distortions of competition.  The public
support measure is approved for a period of six months.  The
Cypriot authorities committed to submit a restructuring plan for
the bank within this period.  The Commission will then take a
final decision on the basis of the restructuring plan.

To meet capital requirements from the European Banking Authority
(EBA), Cyprus Popular Bank issued new shares for EUR1.8 billion,
which Cyprus underwrote in May 2012.  In essence, Cyprus
committed to acquire any new shares not purchased by the general
public or existing shareholders.  As by the end of June 2012,
private investors had subscribed only to negligible amounts of
the offered shares, the State acquired them and thereby became
the majority shareholder of the bank.  The State paid the bank by
transferring it a 12-month sovereign bond, which will be rolled
over during five years.

                            Background

The Commission found that the measure complied with the criteria
laid down in its guidance on emergency recapitalization aid.  In
particular, the shares issued are part of the bank's action to
overcome the capital shortfall to meet end June 2012 EBA's
requirements, the total of which was estimated at EUR2.5 billion.
Cyprus Popular Bank is the second largest banking institution in
Cyprus and a default or technical insolvency would create a
serious disturbance to the economy of Cyprus.  The Commission
also found that the new shares were issued at a sufficiently low
price so as to minimize distortions of competition in the
internal market.

The Cypriot authorities committed to submit a restructuring plan
within six months, from the decision, in order to demonstrate how
Cyprus Popular Bank will be viable without continues state
support.  The Commission will take a final decision on the
recapitalization in the context of the assessment of the bank's
restructuring plan.

Cyprus Popular Bank (formerly known as Marfin Popular Bank) is
the second largest banking group in Cyprus behind the Bank of
Cyprus.



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


CREDIT IMMOBILIER: Can't Refinance Due to Unjustified Ratings
-------------------------------------------------------------
David Whitehouse at Bloomberg News reports that former chief
executive officer of Credit Immobilier de France Claude Sadoun
told Le Figaro that the bank is healthy and profitable.

According to Bloomberg, Mr. Sadoun told the newspaper CIF can't
refinance itself on the markets because of unjustified ratings
action by Moody's.

Mr. Sadoun said in the interview that CIF could still be taken
under the umbrella of a public organization, Bloomberg relates.

                         State Guarantee

As reported by the Troubled Company Reporter-Europe on Sept. 03,
2012, Reuters related that the French government said it agreed
to rescue Credit Immobilier de France after a fruitless search
for a buyer for the lender, which faced a liquidity crisis.  CIF
had been up for sale since at least May after its future was
thrown into doubt by the evaporation of once-cheap funding from
credit markets, on which it depends to finance its operations,
Reuters recounted.  Mr. Moscovici, as cited by Reuters, said that
the state guarantee to CIF, facing the expiration of a EUR1.75
billion covered bond in early October, was subject to approval by
the European Commission.  The government, which said CIF's
business model had been weakened by incoming tougher bank capital
ratios, did not say whether it would still seek a buyer or try to
wind down the group, Reuters noted.

                        Moody's Downgrade

As reported by the Troubled Company Reporter-Europe on May 21,
2012, Moody's Investors Service downgraded the standalone bank
financial strength (BFSR) of Caisse Centrale du Credit Immobilier
de France (3CIF) to E/caa1, outlook developing, from C/a3 on
review for downgrade.   Moody's decision to downgrade 3CIF's BFSR
to E/caa1 from C/a3 is based on the rating agency's assessment
that the bank is no longer viable without ongoing financial
support and ultimately a more durable solution.

Credit Immobilier de France is a mortgage provider.  It has 300
branches in France and about 2,500 employees.



SOCIETE NATIONALE: 2006 Bailout Manifests Assessment Error
----------------------------------------------------------
William Dotinga at Courthouse News Service reports that the EU
General Court ruled European lawmakers "committed a manifest
error of assessment" in letting France bail out a shipping
company with about US$330 million.

France-owned Compagnie generale maritime et financiere (CGMF)
gave the Societe Nationale Corse-Mediterranee (SNCM) a
US$91 million bailout in 2002, and the European Commission
approved that measure six years later, CNS recounts.

The commission also approved a 2006 privatization plan for SNCM,
which included a capital infusion of US$246 million from the
French government, CNS notes.

The General Court of the European Union called the commission's
decision to approve SNCM's 2006 recapitalization "a manifest
error of assessment" on Tuesday, CNS relates.

To determine whether the recapitalization constituted state aid,
regulators had to find that a private investor would have also
chosen to make SNCM more attractive with a US$246 million
investment, rather than liquidate the company, CNS discloses.

According to CNS, the European Commission told the court that the
hypothetical cost of liquidating SNCM, compared with the capital
infusion it approved, was "limited to the cost of additional
redundancy payments, going beyond the strict legal and
contractual obligations, which would have had to have been paid
to employees," according to the court.

Societe Nationale Corse-Mediterranee is a French shipping
company.



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


SOLARWATT AG: Creditors Back Reorganization Plan
------------------------------------------------
Solar Industry reports that Solarwatt AG says its creditors have
voted in favor of a reorganization plan put forth by the company
and restructuring experts from Salans LLP.

Following the vote, the local district court in Dresden
officially confirmed the reorganization plan, Solar Industry
relates.

Solarwatt has been undergoing insolvency proceedings since
June 13, and the company says that now that it has earned
creditors' approval, the largest barrier to the restructuring has
been overcome, Solar Industry notes.

According to Solar Industry, the reorganization plan includes
substantial restructuring contributions from all Solarwatt
creditors.  Unsubordinated, unsecured creditors in the
insolvency, especially suppliers and bond holders of Solarwatt
AG, will receive 16% of their registered and verified outstanding
claims just four weeks after the plan takes legal effect, Solar
Industry discloses.

Entrepreneur Stefan Quandt will become the new anchor investor of
Solarwatt AG, Solar Industry states.   The share capital of the
company that will have been reduced to zero will then be raised
up to a total of EUR5 million through a capital increase, Solar
Industry says.

Following the capital increase, Quandt will hold 94% of the
company's capital via his holding company AQTON SE, Solar
Industry discloses.  Furthermore, Quandt will also issue a
shareholder loan in the amount of EUR5 million, according to
Solar Industry.

Solarwatt AG is a Germany-based crystalline solar module
manufacturer.


TECHEM ENERGY: Moody's Assigns 'B1' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating
(CFR) and a B1 probability of default rating (PDR) to Techem
Energy Metering Service GmbH & Co. KG ("TEMS", "Techem"). At the
same time Moody's has assigned a provisional (P)Ba3 instrument
rating with an LGD3 37% to Techem's announced EUR410 million
senior secured notes raised at the level of Techem GmbH, a
subsidiary of Techem Energy Metering Service GmbH & Co. KG and a
provisional (P)B3 rating with an LGD6 90% to the EUR325 million
senior subordinated notes issued by Techem Energy Metering
Service GmbH & Co. KG. The outlook on the ratings is stable.

Moody's issues provisional ratings for debt instruments in
advance of the final sale of securities or conclusion of credit
agreements. Upon a conclusive review of the final documentation,
Moody's will endeavor to assign a definitive rating to the
different capital instruments. A definitive rating may differ
from a provisional rating.

Assignments:

  Issuer: Techem Energy Metering Service GmbH & Co. KG

     Probability of Default Rating, Assigned B1

     Corporate Family Rating, Assigned B1

     Senior Subordinated Regular Bond/Debenture, Assigned (P)B3

  Issuer: Techem GmbH

    Senior Secured Regular Bond/Debenture, Assigned (P)Ba3

Ratings Rationale

The B1 CFR and PDR ratings reflect: i) Techem's high
profitability levels with a reported EBITDA-margin of 31% in
FY2011/12 supported by the group's high market penetration,
particularly in Germany, ii) good revenue visibility and
stability driven by the non-discretionary nature of demand and
long-term contracts with a typical duration of contracts of 5-10
years in Energy Services and 10-15 years in Energy Contracting,
iii) high entry barriers and low net churn rates below 5%, as
well as iv) a supportive regulatory environment and focus on
energy efficiency.

These positive factors are offset by (i) the group's high
leverage with a Moody's adjusted debt/ EBITDA of 7.3x in
FY2011/12 (5.3x when normalized for losses of EUR81 million on
interest rate SWAPS), (ii) limited ability to deleverage due to
relatively high interest payments, capex requirements and
dividend payments, and (iii) the challenge to successfully
transform the energy contracting business into a growth business
after the end of ecotax legislation in Germany, when tax
reimbursements had been cut and Techem discontinued the tax
efficiency contracting product.

The stable outlook reflects the good level of revenue visibility
and Moody's expectation of a stable operating performance in the
mid-term. It also incorporates the assumption that Techem
achieves a Moody's adjusted leverage of around 5.5x debt/ EBITDA
in the current financial year and is able to maintain a
satisfactory liquidity profile. Given the expectation of
continuous dividend payments and the stability of the business
Moody's does not expect a meaningful deleveraging going forward.

Techem's B1 rating could be upgraded if both Moody's adjusted
Debt/ EBITDA remains below 5.5x and FCF/ debt improves to at
least 5% on a sustainable basis.

Techem's rating could come under pressure if Moody's adjusted
Debt/ EBITDA ratio increases sustainably above 6.0x and/or the
adjusted EBIT/ interest ratio weakens below 1.2x. Also double
digit negative free cash flow (after dividend payments) in any
financial year with no signs of improvement could put pressure on
the rating.

Liquidity

Following the re-financing Moody's believes that Techem will have
an adequate liquidity. This assessment is supported by a high
cash balance of EUR72 million as of 31 March 2012, sufficient
availability under the new revolving credit facilities (EUR50
million for working capital needs, EUR50 million for capital
expenditures) as well as a stable ongoing cash flow generation.
Furthermore Moody's takes into account the seasonality of cash
collection during the year as well as cash outflows for dividend
payments. Moody's also assumes a sustained comfortable headroom
under the financial covenants agreed in the new financing
contracts.

Structural Considerations

The senior secured notes which will be issued by Techem GmbH are
guaranteed by the parent, Techem Energy Metering Service GmbH &
Co. KG and certain operating subsidiaries. Guarantors will
represent at least 85% of the group's EBITDA and consolidated
gross assets, respectively. The senior secured notes, senior
secured bank facilities and hedging facilities rank pari passu
with each other and are secured by share pledges, intercompany
receivables and holding accounts.

The senior subordinated notes which will be issued by Techem
Energy Metering Service GmbH & Co. KG are unconditionally
guaranteed on a senior subordinated basis by Techem GmbH and
certain operating subsidiaries. Guarantors will represent at
least 85% of the group's EBITDA and consolidated gross assets,
respectively. The senior subordinated notes are secured by a
second-priority pledge over shares and intercompany accounts and
rank behind senior secured notes and senior secured bank
facilities.

In Moody's analysis of the priority of claims within the
suggested capital structure the senior secured notes (approx.
EUR410 million) and senior secured bank facilities (approx.
EUR550 million) as well as trade payables, operating lease
obligations and unfunded pension obligations rank prior to the
senior subordinated notes (approx. EUR325 million). As a result
of Moody's Loss given Default analysis the senior secured notes
are rated one notch above the corporate family rating. The senior
subordinated notes are rated two notches below the corporate
family rating given their claims contractually ranking behind the
senior secured notes and senior secured bank facilities in a
default scenario.

The principal methodology used in rating Techem Energy Metering
Service GmbH & Co KG and Techem GmbH was the Global Business &
Consumer Service Industry Rating Methodology published in October
2010. 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 Eschborn (Germany), Techem is a leading provider
of energy services which operates through two divisions: Energy
Services (around 90% of EBITDA in FY2011/12) provides sub-
metering of heating use and water consumption for individual
housing units and ancillary services. Energy Contracting (around
10% of EBITDA in FY2011/12) offers a holistic management of the
client's energy consumption through the planning, financing,
construction and operation of heat stations, boilers, cooling
equipment and combined heating and power units, including from
time to time delivery of primary energy. In FY2011/12 Techem
group had revenues of EUR692.9 million and thereof around 80%
were generated in Germany.


TECHEM GMBH: S&P Assigns 'B+/B' Corporate Credit Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+/B' long- and
short-term corporate credit ratings to German energy services
company Techem GmbH. The outlook is stable.

"At the same time, we assigned our 'B+' issue rating and '3'
recovery rating on Techem's proposed senior secured credit
facilities and senior secured notes, and our 'B-' issue rating
and '6' recovery rating on the proposed senior subordinated notes
issued by related entity Techem Energy Metering Service GmbH &
Co. KG," S&P said.

"The ratings on Techem balance our view of the group's leading
market position in the German energy heat and water sub-metering
industry with our assessment of Techem's financial risk profile
as 'highly leveraged.' Our assessment reflects the group's weak
cash flow adequacy and credit metrics, and what we see as its
aggressive financial policies. This is partly offset by Techem's
'adequate' liquidity profile due to low capital expenditures
(capex) and the presence of committed back-up credit lines," S&P
said.

"We understand that Techem is planning to refinance its existing
loan portfolio, mainly comprising bank debt, with bonds. The
group is contemplating issuing a EUR410 million secured bond and
a EUR325 million subordinated bond. It plans to complement this
with a rollover of EUR450 million of an existing secured loan. In
addition, the group is financed by a shareholder loan, for which
the balance was EUR413 million at financial year-end March 31,
2012," S&P said.

"In our view, Techem's core German heat and water sub-metering
operations will continue to generate adequate cash flow to enable
the group to deleverage moderately and sustain or improve its
credit metrics. That said, we anticipate that the group will pay
any excess cash it generates to shareholders to the extent that
the loan document allows. We also anticipate that the group will
contain its expansion into lower-margin energy contracting
services and less stable international energy services, and that
its core heat and water sub-metering business will remain the
main contributor to earnings and cash flow over the medium term.
We further assume that Techem will maintain an 'adequate'
liquidity profile, as our criteria define this term," S&P said.

"We could consider lowering the rating if Techem's liquidity
weakens substantially, or if revenue and EBITDA growth falls
significantly below our expectations, preventing Techem from
deleveraging. Similarly, we could consider lowering the ratings
if free cash flow generation falls significantly below our
expectations," S&P said.

"We believe that upside is limited over the next 12 months
because the rating already takes into account the continued and
resilient growth in revenues and EBITDA that we anticipate during
this period. In addition, we believe that Techem's rather limited
size and scope limits rating upside. However, we could
contemplate raising the rating if Techem reports vastly improved
credit ratios, but we consider this scenario to be remote at this
stage," S&P said.


WINDERMERE VII: Moody's Lowers Rating on Class D Notes to 'Caa3'
----------------------------------------------------------------
Moody's Investors Service has taken a rating action on the
following classes of Notes issued by Windermere VII CMBS plc
(amounts reflect initial outstanding):

    EUR466M Class A2 Notes, Affirmed at Aa3 (sf); previously on
    Aug 4, 2011 Downgraded to Aa3 (sf)

    EUR50M Class B Notes, Affirmed at A2 (sf); previously on
    Sep 23, 2009 Confirmed at A2 (sf)

    EUR27.4M Class C Notes, Downgraded to Ba3 (sf); previously on
    Sep 23, 2009 Confirmed at Baa3 (sf)

    EUR50.8M Class D Notes, Downgraded to Caa3 (sf); previously
    on Sep 23, 2009 Confirmed at B1 (sf)

    EUR0.05M Class X Notes, Affirmed at Ba3 (sf); previously on
    Aug 22, 2012 Downgraded to Ba3 (sf)

Moody's does not rate the Class E and Class F Notes.

Ratings Rationale

The downgrade action on the Class C and D Notes reflects Moody's
increased loss expectation for the pool since its last review.
This is primarily due to 56% of the portfolio suffering an actual
or imminent maturity payment default and a decline in value for a
number of the properties and property portfolio securing the
loans.

The rating on the Class A and B Notes is affirmed because their
current credit enhancement level of 36% and 25.5% respectively is
sufficient to maintain their ratings despite the increased loss
expectation for the pool. The Class A Notes benefit from
sequential payment of principal proceeds since the sequential
payment trigger was breached in January 2012.

The key parameters in Moody's analysis are the default
probability of the securitized loans (both during the term and at
maturity) as well as Moody's value assessment for the properties
securing these loans. Moody's derives from those parameters a
loss expectation for the securitized pool.

Based on Moody's reassessment of the underlying property values,
the pool's weighted-average (WA) securitized loan LTV ratio is
103% and on a whole loan basis it is 109%. This compares with the
prior review WA LTV of 84% on the securitized pool and 88% on a
whole loan basis. In Moody's view, the value re-assessment is
justified by i) the upward yield pressure for secondary
properties in Europe and ii) the adverse lease rollover profile
for a number of the loans.

Five of the nine loans were in special servicing as of the July
2012 IPD representing 55.7% of the pool. Of the loans in special
servicing: (i) The Adductor and Corpus loans failed to repay on
their maturity date in July 2012; (ii) the Mulheim loan failed to
repay on its maturity date in January 2011; (iii) the Nordostpark
loan has a LTV covenant breach with U/W whole loan LTV of 131%,
Moody's expects this loan to default on its maturity date in
October 2012; and (iv) the Redleaf I loan has been in special
servicing since September 2009 and also two of the three
facilities under the loan are in maturity default. Moody's models
all five of these as defaulted loans and further expects the
Redleaf II to default at its maturity date in February 2013.
Moody's expects losses on these loans, ranging from 0-25% on
Adductor and Corpus, 25-50% on Mulheim, Nordostpark and Redleaf
II and 50-75% on Redleaf I.

The Nitsba loan matured in July 2012 and was given a six month
extension until January 2013 to facilitate the sale of the
underlying properties which according to the servicer is expected
result in the full repayment of the loan. Moody's has also
assigned a high probability to this loan repaying. The remaining
pool's weighted average expected loss will increase if the Nitsba
loan repays since this loan has a very low expected loss and it
is also the largest loan in the pool. This increase in expected
loss is however mitigated by the further increase in credit
enhancement for the senior and mezzanine Classes that would
result from the Nitsba loan's repayment.

In general, Moody's analysis reflects a forward-looking view of
the likely range of commercial real estate collateral performance
over the medium term. From time to time, Moody's may, if
warranted, change these expectations. Performance that falls
outside an acceptable range of the key parameters such as
property value or loan refinancing probability for instance, may
indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. There may
be mitigating or offsetting factors to an improvement or decline
in collateral performance, such as increased subordination levels
due to amortization and loan re- prepayments or a decline in
subordination due to realized losses.

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

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

Moody's Portfolio Analysis

Windermere VII CMBS plc closed in May 2006 and represents the
securitization of initially twelve mortgage loans originated by
Lehman Commercial Paper Inc and secured by first-ranking legal
mortgages over initially 72 commercial properties located in
Germany (60.1% of the original pool), France (17.3%), Sweden
(17.5%) and Spain (5.1%). Currently nine loans remain in the pool
which are secured by mortgages over 55 properties. The pool
exhibits a below average concentration in terms of geographic
location and property type. By property value, 54% of the
properties are in Germany, 39% in France and 7% in Spain and in
terms of type, 45% are office properties, 48% are multifamily
with some mixed use component and 7% are retail properties.

Moody's uses a variation of Herf to measure diversity of loan
size, where a higher number represents greater diversity. Large
multi-borrower transactions typically have a Herf of less than 10
with an average of around 5. This pool has a Herf of 7.9, lower
than at Moody's prior review. As of the July 2012 reporting, the
transaction's total pool balance was EUR322.3 million, down 59%
since closing mainly due to the repayment of the Darmstadt loan
in April 2007, the Hanseatic loan in April 2010 and the Tornet
loan in September 2011. There has also been some partial
prepayments and amortization on the remaining loans.

The Nitsba loan is the largest loan representing 18.7% of the
pool. The loan is secured by 8 secondary quality office
properties located throughout France. Two of the eight properties
are vacant and with respect to the remainder, France Telekom
provides 90% of the rental income and the weighted average lease
remaining is 5.5 years. The loan benefits from sponsor support
and a low leverage with U/W LTV of 45% (there is no B-loan). As
mentioned above the loan has been granted a six month extension
since the servicer expects full repayment of the loan through the
disposal of some of the assets. The Moody's LTV is 72% and
Moody's also expects this loan to repay within the next few
quarters.

Adductor is the second largest loan representing 15% of the pool.
The loan is secured by 13 office properties in France with 52% by
value located in Nice, 18% in Marseille, 14% in Valbonne, 12% in
Aix en Provence and 4% in Lyon. The weighted average remaining
lease term is only 2 years. Moody's securitized LTV is 81% (there
is no B-loan). The loan failed to repay on its maturity date in
July 2012.

The Nordostpark (13.5%) and the Mulheim (6.4%) loans are both
secured by a single office property in Germany and both are
single let with a short weighted average remaining lease term.
The Nordostpark property is let to Alcatel-Lucent for another 2.5
years and the Mulheim loan is let to Deutsche Telekom for another
three years. In both cases there is a high probability that the
tenant will vacate at maturity and as a result both properties
have suffered a substantial value decline since closing, 47% for
Nordostpark and 37% for Mulheim. The current U/W securitized loan
LTV for the Nordostpark property is 101% (whole loan LTV is 131%)
and 117% for Mulheim. Moody's whole loan LTV is 164% for the
Nordostpark property and 146% for the Mulheim property. The
Mulheim failed to repay on its maturity date in January 2011 and
Moody's expects the Nordostpark loan to default on its maturity
date in October 2012.

The Firefly (13.1%), Phoenix (7.2%), and Corpus (13.2%) loans are
secured by German multifamily portfolios. The Firefly and Phoenix
portfolios share the same sponsor and the properties under these
loans are of much better quality then the Corpus properties.
Moody's LTV for the Firefly and Phoenix loans are 77% and 67%
respectively. The sponsor has started to delever the loan though
property disposals ahead of the loans' maturity date in April
2014. Moody's default expectation for the Firefly loan is medium
(10%-25%) and for the Phoenix loan it is low/medium (5%-10%).
Moody's LTV for the Corpus loans is 82% based on the securitized
loan and 93%based on the whole loan. This loan defaulted on its
maturity date in July 2012.

Redleaf I (7.6%) and Redleaf II (5.3%) loans are secured by
secondary retail properties in Spain. The Redleaf I loan is
already in maturity payment default and Moody's also expect the
Readleaf II loan to default at maturity. Moody's LTV is 244% and
120% for the Redleaf I and Redleaf II loans respectively.

Portfolio Loss Exposure: Moody's expects a significant amount of
losses on the securitized portfolio, stemming mainly from the
refinancing profile of the portfolio. Given the default risk
profile and the anticipated work-out strategy for defaulted and
potentially defaulting loans, the expected losses are likely to
crystallize only towards the end of the transaction term.

The principal methodology used in this rating was Moody's
Approach to Real Estate Analysis for CMBS in EMEA: Portfolio
Analysis (MoRE Portfolio) published in April 2006.

Other factors used in this rating are described in European CMBS:
2012 Central Scenarios published in February 2012.

The updated assessment is a result of Moody's on-going
surveillance of commercial mortgage backed securities (CMBS)
transactions. The last Performance Overview for this transaction
was published on 15 June 2012.

In rating this transaction, Moody's used both MoRE Portfolio and
MoRE Cash Flow to model the cash-flows and determine the loss for
each tranche. MoRE Portfolio evaluates a loss distribution by
simulating the defaults and recoveries of the underlying
portfolio of loans using a Monte Carlo simulation. This portfolio
loss distribution, in conjunction with the loss timing calculated
in MoRE Portfolio is then used in MoRE Cash Flow, where for each
loss scenario on the assets, the corresponding loss for each
class of notes is calculated taking into account the structural
features of the notes. As such, Moody's analysis encompasses the
assessment of stressed scenarios.

Moody's ratings are determined by a committee process that
considers both quantitative and qualitative factors. Therefore,
the rating outcome may differ from the model output.



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


OMEGA CAPITAL: S&P Reinstates 'B' Ratings on Two Note Classes
-------------------------------------------------------------
Standard & Poor's Ratings Services reinstated its 'B (sf)' credit
ratings on Omega Capital Investments PLC's series 43 (Waypoint
CDO) class A-1E and B-1E notes, which are European synthetic
collateralized debt obligation (CDO) tranches.

"On Aug. 7, 2012, we withdrew in error the rating on class A-1E
and B-1E notes. One of the transaction participants recently
informed us that the notes were not repurchased in full, which
was our assumption at the time. Therefore, we have reinstated our
ratings on the class A-1E and B-1E notes at the rating levels at
which they were withdrawn," S&P said.

               STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

    http://standardandpoorsdisclosure-17g7.com



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


SEAT PAGINEGIALLE: S&P Raises Corporate Credit Rating to 'CCC'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Italy-based classified directory publisher SEAT
PagineGialle SpA (SEAT) to 'CCC' from 'D' (Default).

"At the same time, we raised our issue rating on SEAT's EUR750
million senior secured notes to 'CCC+' from 'D'. The recovery
rating on these notes is '2', indicating our expectation of
substantial (70%-90%) recovery prospects in the event of a
payment default," S&P said.

"In addition, we withdrew our 'D' issue and '2' recovery ratings
on SEAT's senior secured credit facilities, including the term
loan A, term loan B, and revolving credit facility (RCF)," S&P
said.

"Finally, we withdrew our 'D' issue and '5' recovery ratings on
the EUR1.3 billion subordinated callable bonds issued by SEAT's
affiliate Lighthouse International Co. S.A.," S&P said.

"The upgrade reflects our understanding that SEAT has completed
its financial restructuring under which the group has refinanced
its existing senior secured credit facilities with EUR686 million
of new senior secured credit facilities (including a new EUR90
million RCF). Following a merger into SEAT of Lighthouse
International, SEAT has also undertaken a debt-to-equity swap on
about EUR1.24 billion of the EUR1.3 billion subordinated bonds
and accrued interest of approximately EUR69 million, in exchange
for 88% of the group's voting shares. The remainder of the
subordinated bonds has been converted into EUR65 million of new
senior secured bonds (on the same terms and conditions as the
existing EUR750 million senior secured bonds)," S&P said.

"We could raise the corporate credit rating by up to two notches
following our forthcoming review of information on SEAT's future
earnings and cash flow generation capacity, and covenant
structure. We will review the new debt documentation
comprehensively and assess the group's financial policy,
operating strategy, earnings, and cash flow prospects. We will
also assess the effect these factors have on our assessment of
the group's liquidity and financial and business risk profiles,"
S&P said.

"SEAT, like most of its peers, is facing a continued structural
decline in the print directories sector as small and midsize
business advertising expands across a greater number of online
marketing channels. The recent financial restructuring has
materially reduced SEAT's leverage and the cost of debt. However,
the long-term viability of the group's new capital structure will
mainly depend on its ability to turn its business round by
stabilizing revenues and profitability," S&P said.

"We aim to resolve the CreditWatch within the next month, on
completion of our review of the key elements of SEAT's
restructuring, such as the new debt documentation, the group's
financial policy and operating strategy, and its earnings and
cash flow prospects. We will also review the effect of these
factors on our assessment of SEAT's business and financial risk
profiles. We believe this review could lead to a possible upgrade
of up to two notches," S&P said


SOPAF: UniCredit Wants to Commence Insolvency Proceedings
---------------------------------------------------------
Elisa Anzolin at Reuters reports that judicial sources said on
Wednesday UniCredit has asked a court to start insolvency
proceedings for loss-making Sopaf.

Sopaf, which first failed to pay back debt last November and has
net debt of around EUR100 million (US$129 million), said in a
statement on Wednesday it had received no official notice about
the insolvency proceedings request, Reuters relates.

Sopaf also said it planned to file a court request within a week
to reach a shared solution with creditors that would most likely
involve liquidation, though it added it did not rule out keeping
the company up and running, Reuters notes.

According to Reuters, the Il Messaggero newspaper said that Sopaf
owes UniCredit and other bank lenders including Monte dei Paschi
and Popolare di Sondrio EUR71.5 million.

Sopaf is an Italian investment company.



=========
M A L T A
=========


ST. PHILIP'S HOSPITAL: Owes Around EUR12 Million to Creditors
-------------------------------------------------------------
Malta Star reports that St. Philip's Hospital owes around
EUR12 million to creditors for materials and supplies, wages of
employees, and fees of consultants and banks.

According to Malta Star, Dr. Frank Portelli who is responsible
for running the hospital wants to start paying this money and is
requesting the Malta government to give him a EUR5 million down
payment as part of the EUR15 million rent for a 15-year period or
the equivalent of EUR1 million rental payment per year.

PN MP Francis Zammit Dimech has been acting as the middleman to
reach a deal between government and Dr. Frank Portelli, a former
PN MP himself and former President of the PN's Executive
Committee, Malta Star discloses.

Malta Star notes that while trying to reach a deal with the Malta
government to rent St. Philip's Hospital to ease somewhat the
problem of the shortage of bed at Mater Dei Hospital after the PN
government decided to build it too small for Malta's needs, Dr.
Frank Portelli has been negotiating with Italian businessmen the
sale of the hospital for EUR18 million.  Even Health Minister
Renato Balduzzi was interested in acquiring a share in the
hospital in his private capacity, Malta Star states.



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


VNESHECONOMBANK: S&P Assesses Stand-Alone Credit Profile at 'bb'
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its long-term foreign
currency issuer credit ratings on Russia-based Vnesheconombank
(VEB) at 'BBB' and the long- and short-term local currency
ratings at 'BBB+/A-2'. "We raised our short-term foreign currency
rating on VEB to 'A-2' from 'A-3'. The outlook is stable," S&P
said.

"The ratings on VEB are based on our opinion of its status as a
government-related entity (GRE) with an 'almost certain'
likelihood of extraordinary support from the Russian government
in case of financial difficulties," S&P said.

"The rating action on the short-term foreign currency rating
reflects the same action taken on June 27, 2012, on the short-
term foreign currency rating on the Russian Federation (foreign
currency: BBB/Stable/A-2; local currency: BBB+/Stable/A-2)," S&P
said.

"We assess VEB's stand-alone credit profile (SACP) at 'bb'. It is
based on our 'bb' anchor and on our assessment of the bank's
'strong' business position, 'moderate' capital and earnings,
'moderate' risk position, 'above average' funding, and 'adequate'
liquidity, as our criteria define these terms," S&P said.

In accordance with S&P's criteria for GREs, the ratings agency's
view of an 'almost certain' likelihood of extraordinary
government support is based on its assessment of VEB's:

-- "Critical" role to the Russian Federation as the prime public
    development institution of the government, a role that cannot
    be readily undertaken by a private entity; VEB group assets
    currently represent about 5% of Russia's GDP; and

-- "Integral" link with the Russian Federation. This is because
    of VEB's special status as a state corporation, operating
    under the law "on bank for development" with strong oversight
    from the federal government and because of the government's
    proven track record of extraordinary financial support for
    VEB in all circumstances.

As a result, VEB's long-term foreign currency rating is three
notches higher than its SACP.

"The stable outlook on VEB mirrors that on the Russian
Federation. Future rating actions, positive or negative, on VEB
will likely follow those on the sovereign, assuming that the
institution's fundamentals and public policy functions remain
unchanged," S&P said.

"We could lower VEB's local currency rating over the next two
years -- even if the local currency sovereign rating remains
unchanged -- if VEB's link with the government weakens; for
example, if VEB loses its special legal status. Alternatively, we
could take a similar action if the government reduces VEB's role
as a prime development institution, or significantly scales down
its interventions in the domestic economy. We do not currently
expect either scenario to occur, but should both take place, it
could lead to a negative rating action on VEB's foreign currency
rating," S&P said.



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


DIXONS RETAIL: Moody's Rates GBP150MM Sr. Unsecured Notes 'B1'
--------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to the new
GBP150 million of senior unsecured notes due 2017 issued by
Dixons Retail plc. Dixons' existing ratings, which include a B1
corporate family rating (CFR), are unchanged. The outlook on the
ratings is negative.

Moody's expects that Dixons will use the proceeds from the new
issuance to repurchase up to GBP50 million of its outstanding
GBP150 million of notes due 2015, thereby smoothing out its debt
maturity profile. This tender offer is subject to the successful
completion of the issuance of the new notes. The new issuance
will also reduce the company's reliance on its GBP300 million
revolving credit facility (expiring in June 2015).

Separately, Dixons has also offered to repurchase up to GBP80
million of its outstanding GBP160 million notes due 2012, using
existing cash resources.

Ratings Rationale

The B1 rating assigned to the new notes is in line with the
rating of the company's existing senior unsecured debt
instruments. Because Dixons issued the new notes on an unsecured
and guaranteed basis, they rank pari passu with these existing
senior debt instruments, which include GBP160 million of notes
due 2012 as well as GBP150 million of notes due 2015.

Dixons' B1 CFR (negative outlook) primarily reflects the
company's weak leverage metric, which in itself reflects
continued weakness in comparable sales growth and intense
competition within the electrical and consumer electronics
segments.

In addition, Dixons is geographically exposed to weak peripheral
countries such as Greece and Italy, where the company's losses
increased last year. Moreover, Dixons' earnings are highly
seasonal in nature, and this year, the repayment of its GBP160
million bond will coincide with the ramp-up in its working
capital needs ahead of the peak season. However, in this regard,
Moody's views positively Dixons' efforts in preserving cash and
the company's renegotiation of its revolving credit facility,
which is a key component of its liquidity profile.

The rating is supported by the company's scale and market-leading
positions in the electrical and consumer electronics segments,
particularly in the UK and Nordics, its degree of geographic
diversification to a few other continental European countries and
its overall efficient distribution and supply-chain
infrastructure. Moody's expects that Dixons' ongoing Renewal and
Transformation Plan (which includes the revamping of stores and
cost reductions) will position the company more strongly within
the sector when its sales recover.

The negative outlook is premised on Moody's expectation that
Dixons' metrics will remain weak for the current rating at least
for several quarters. This reflects the challenging macroeconomic
environment in some of the countries in which the company
operates.

What Could Change The Rating Up/Down

Although unlikely in the near term, Moody's believes that
positive pressure on the rating or outlook could occur if the
company's earnings were to sustainably improve, translating into
better credit metrics including a debt/EBITDA ratio comfortably
below 5.5x and an EBITA/interest expense ratio sustained at, or
higher than, 2.0x.

Conversely, negative rating pressure would likely arise if
Dixons' metrics were to deteriorate further in coming quarters,
or if Moody's were to become concerned about the company's
liquidity, either in terms of access to the revolving credit
facility or weaker cash generation.

Principal Methodology

The principal methodology used in rating Dixons Retail plc was
the Global Retail Industry Methodology published in June 2011.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Headquartered in Hemel Hempstead, England, Dixons Retail plc is
one of Europe's leading specialist electrical retailing and
services companies. It posted revenues of GBP8.19 billion for the
financial year ended April 28, 2012 (FY 2012).


ENPURE: Enters Administration, Ends Seawage Project
---------------------------------------------------
BBC News reports that a GBP7 million sewage works project at
Jersey's Bellozanne has been halted after Enpure went into
administration.

Enpure was five months into an 18-month project to replace the
sludge treatment facility at the St. Helier site, according to
BBC News.  The report relates that as a result of the work
stopping, 25 workers and sub-contractors left the site.

BBC News discloses that Sewage will continue to be treated at the
existing plant, although its closure in November 2013 is in
doubt.

The report notes that Chris Sampson from Transport and Technical
Services, which oversees the treatment of sewage in Jersey, said
the sludge treatment was a major part of the overall process.

"The site remains closed at the moment, whilst we're in
discussions with the administrators on how to restart the
contract," the report quoted Mr. Sampson as saying.

Mark Hopkins, Matthew Hammond and Steve Ellis have been appointed
as joint administrators.

Enpure is a UK waste processing firm.


GKN HOLDINGS: S&P Assigns 'BB+' Rating to Euro Medium-Term Note
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' rating to
the proposed unsecured euro medium-term note (EMTN) issue
announced by the U.K. engineering group GKN Holdings PLC (GKN;
BB+/Stable/--). The recovery rating is '4'. "We also affirmed our
'BB+' issue rating and '4' recovery rating on the existing GBP350
million 6.75% notes due Oct. 28, 2019," S&P said.

"On Sept. 4, 2012, GKN announced its intention to issue the
unsecured notes under the GBP2.0 billion EMTN program in order to
part-finance the acquisition of Volvo Aero (the aero engine
division of AB Volvo; BBB/Stable/A-2), announced in July 2012,"
S&P said.

"The existing GBP350 million 6.75% notes due Oct. 28, 2019, and
the proposed notes, both issued by GKN, are rated 'BB+', the same
level as the long-term corporate credit rating on GKN. The
recovery rating on these notes is '4', indicating our expectation
of average (30%-50%) recovery in the event of a payment default.
Our ratings assume the issuance of about EUR500 million or
currency equivalent of this amount," S&P said.

"The recovery and issue ratings are supported by our assessment
of GKN as a going concern and the moderate level of prior ranking
debt at the point of default. However, we consider that the
ratings are constrained at the '4' level by GKN's high level of
unfunded pension liabilities, the notes' relatively weak security
and guarantee package, and GKN's exposure to multiple
jurisdictions, which we believe could reduce funds available to
creditors in a hypothetical default," S&P said.

"The recovery and issue ratings are constrained by the material
pension deficit (about GBP1.2 billion as of Dec. 31, 2011),
mainly in the U.K., Germany, and the U.S., that could either
reduce the enterprise value at default or have a contractually or
structurally senior claim over the unsecured debtholders at
the point of reorganization. Likewise, GKN's unrated unsecured
revolving credit facilities (RCFs) benefit from stronger
protection than the notes owing to the RCFs' maintenance
financial covenants. In addition, if GKN were to refinance the
RCFs on a secured basis in the run-up to default, we believe the
recovery prospects for the senior unsecured noteholders would be
significantly reduced," S&P said.

"We assume that primary insolvency proceedings would likely occur
in the U.K. as the center of main interest (COMI). We classify
the U.K. as a Group A1 country in terms of the level of creditor
protection that the U.K. insolvency regime offers. However, GKN
has distinct operations in different jurisdictions, and in our
view any insolvency process that incorporates multijurisdictional
proceedings would likely have a negative effect on the ultimate
recovery prospects since it could potentially take longer and be
Expensive," S&P said.

"We believe that if GKN experienced a payment default, it would
most likely be reorganized as a going concern, as we anticipate
that its leading market positions in the European market, good
geographic and end-market diversity, and presence in relatively
stable aerospace business will be recognized by potential buyers
even under distressed circumstances," S&P said.

"We continue to believe that the main rating constraints for GKN
are the highly cyclical and competitive characteristics of the
auto components market; the group's limited presence in the auto
and aerospace aftermarkets; and the group's volatile credit
metrics, partly as a result of its acquisitive growth strategy.
These constraints are partially offset by GKN's leading position
in auto components, the stable earnings generated by the
Aerospace division, and the group's good geographic and customer
diversification," S&P said.


* Restructuring Vet Yushan Ng Joins Cadwalader's London Office
--------------------------------------------------------------
Cadwalader, Wickersham & Taft LLP, a leading counselor to global
financial institutions and corporations, disclosed that Yushan
Ng, a veteran restructuring and insolvency attorney who has been
recognized and honored as one of the leading practitioners in his
field in Europe, has joined the firm's Financial Restructuring
Department as partner.  Mr. Ng will practice from Cadwalader's
London office.

"Yushan is one of the most talented restructuring lawyers in
Europe today.  We are very pleased to be able to make his talents
available to our clients in this very challenging business
environment," said W. Christopher White, Chairman of Cadwalader.
"Yushan has that valuable combination of broad experience and
creative approach to problem solving that help make him so
effective. He will make Cadwalader's talented group of
restructuring lawyers even stronger."

Mr. Ng joins Cadwalader from Linklaters where he was one of the
partners who led the distressed investment practice.  In this
role, he was responsible for leading a wide range of domestic and
cross-border restructurings, insolvency proceedings and
financings.  In addition, Mr. Ng also served as the primary
relationship partner for numerous private equity and hedge funds
that invest in distressed and special situations.  He has held
central roles in a number of recent milestone European corporate
restructurings including SEAT Pagine SpA, Fitness First, Klockner
Pentaplast, Truvo and Regency Casinos.

"Cadwalader was the pioneer in developing a fund oriented
creditor side practice in London," stated Mr. Ng.  "I am looking
forward to joining their excellent team in the very focused
practice where I specialize."

"I am delighted to welcome Yushan to our Restructuring team,"
remarked Gregory Petrick, Managing Partner of the firm's London
office and Head of its European and Asian Restructuring Practice.
"Yushan's experience, his reputation for innovation and
extraordinary technical expertise will contribute to the team's
continued success and expansion."

Richard Nevins, senior partner in Cadwalader London's Financial
Restructuring Department added: "Our group is now poised to
become one of the elite restructuring and insolvency practices in
Europe.

Bringing on board an outstanding lawyer like Yushan Ng brings us
closer to that goal."

Mr. Ng began his tenure at Linklaters as a trainee solicitor in
1999 before being promoted to associate solicitor in 2001.  He
was named partner in 2008. Ng holds a B.A., with honors, in
Jurisprudence from Merton College, Oxford University.  Following
graduation, he participated in the Bar Vocational Course at The
Inns of Court School of Law.

Cadwalader's Financial Restructuring Practice is a premier
restructuring, bankruptcy, insolvency and workout group
headquartered in New York under the direction of John Rapisardi
and George Davis.

                    About Cadwalader Wickersham

Cadwalader, Wickersham & Taft LLP -- http://www.cadwalader.com/
-- established in 1792, is an international law firm, with
offices in New York, London, Charlotte, Washington and Beijing.
Cadwaladerr serves a diverse client base, including many of the
world's top financial institutions, undertaking business in more
than 50 countries in six continents.

The firm offers legal expertise in antitrust, banking, business
fraud, corporate finance, corporate governance, environmental,
healthcare, insolvency, insurance and reinsurance,  intellectual
property, litigation, mergers and acquisitions, private client,
private equity, real estate, regulation, securitization,
structured finance, and tax.



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


* Moody's Says EMEA Spec-Grade Cos. Have Weak Liquidity Profile
---------------------------------------------------------------
Around 15% of rated speculative-grade non-financial companies in
Europe, Middle East and Africa (EMEA) have a weak liquidity
profile compared to only 3.5% in North America and 21.8% in Asia
according to a new report published by Moody's Investors Service
on Sept. 12.

The launch issue of the new quarterly report is titled "SGL
Monitor -- EMEA Edition". Moody's subscribers can access this
report via the link provided at the end of this press release.

The EMEA SGL Monitor report, along with the Asia and US versions,
will provide investors with a regular update and comparative tool
for assessing the collective liquidity profile of speculative-
grade companies in the three regions. The current report shows
that 59% of speculative-grade issuers in EMEA have a SGL-3 or
SGL-4 rating (indicating they have adequate or weak liquidity,
respectively) compared with 53% in Asia and 35% in North America.

The new report assesses liquidity trends for 255 speculative-
grade companies across 30 countries and 27 industries, covering
more than US$227 billion of rated debt in the Europe, Middle East
and Africa (EMEA) region. Speculative-grade liquidity ratings or
SGLs are developed for each company using Moody's unique global
approach for assessing the liquidity of speculative-grade
companies. The SGLs are given based on four liquidity components:
cash flow and internal sources of cash; liquidity availability
and external sources of cash; covenants; and alternative sources
of liquidity; and a score is assigned ranging from 1 (very good)
to 4 (weak). While the overall SGL rating considers these four
components, the composite SGL rating is not a weighted average of
the four component scores, since their relative importance varies
over time.

"We are seeing weaker liquidity among EMEA spec-grade corporates
than in North America, mostly due to the pressure of the weaker
macroeconomic environment in the region on the earnings of many
companies across EMEA," says Soummo Mukherjee, a Moody's Vice
President - Senior Credit Officer. "The weaker liquidity profile
also reflects, to some extent, the higher reliance of issuers in
EMEA on bank relationships which often results in credit
facilities that are shorter-term or more conditional than in
North America."

The new publication also features Moody's proprietary Liquidity
Stress Index (LSI), which will track the percentage of
speculative-grade companies with the lowest SGL rating (SGL-4),
which currently stands at 15% of the 255 speculative-grade
companies. This index will allow market participants to
anticipate changes in the speculative-grade default rate as
increases in the index reflect weakening liquidity and the
greater likelihood of an increased default rate. Companies with
relatively weak liquidity are likely to have low corporate family
ratings (CFRs), which reflect a higher probability of default.

Moody's has published short-term scores for speculative-grade
issuers, known as SGLs or Speculative Grade Liquidity Ratings,
for individual issuers in the US since 2002. Moody's does not
publish individual SGLs for issuers in EMEA or in Asia, but
conducts the same analytical process. The EMEA LSI will be
directly comparable to the existing Moody's North America and
Asia (ex-Japan) indexes.


* BOOK REVIEW: Ralph H. Kilmann's Beyond the Quick Fix
------------------------------------------------------
Author: Ralph H. Kilmann
Publisher: Beard Books
Hardcover: 320 pages
121
Listprice: $34.95
Review by Henry Berry

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

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

Kilmann tells corporate leaders how to break the cycle of
embracing a quick fix, discarding it after it proves ineffective,
and then turning to a newer and ostensibly better quick fix that
soon proves to be equally ineffective. For a corporation to break
this self-defeating cycle, the author offers a five-track
program.

The five tracks, or elements, of this program are corporate
culture, management skills, team-building, strategy-structure,
and reward system. These elements are interrelated. The virtue of
Kilmann's multidimensional five-track program is that it
addresses a corporation in its entirety, not simply parts of it.

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

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

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


                            *********

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

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

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