TCREUR_Public/121024.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, October 24, 2012, Vol. 13, No. 212



YPSO HOLDING: S&P Affirms 'B' Corp. Credit Rating; Outlook Stable


SUNSTROM GMBH: Former Management Buys Solarwatt AG Subsidiary


FREESEAS INC: Had US$20.8-Mil. Net Loss in 1st Half of 2012
* GREECE: U.S. Distressed Debt Investors Eye Hedge Funds




KAZAKHSTAN ENGINEERING: Moody's Assigns 'Ba2' CFR; Outlook Stable


CLONDALKIN INDUSTRIES: Moody's Affirms 'B3' CFR; Outlook Negative
DECO 14 - PAN EUROPE: S&P Cuts Rating on Class D Notes to 'CCC-'


ROMREAL: Could Default If Alpha Bank Issue Not Addressed


ROSBANK: Fitch Affirms 'bb' Viability Rating

S E R B I A   A N D   M O N T E N E G R O

NOVA AGROBANKA: Postanska Stedionica to Take Over Assets


BANKIA SA: Amongs Banks to Obtain EU Approval for Gov't. Bailouts
RIVOLI PAN: Moody's Affirms 'Ba3' Rating on Class X Notes
* SPAIN: Moody's Downgrades Ratings of Five Regions


FINANSBANK: Fitch Affirms 'BB-' Support Rating Floor

U N I T E D   K I N G D O M

LABELSPRINT: In Administration, Sold in Pre-Pack Deal
MANGANESE BRONZE: In Administration After Failing to Secure Cash
NATIONWIDE BUILDING: Fitch Affirms 'BB+' Preferred Shares Rating
RANGERS FC: Administrators to Tap BDO as Oldco Rangers Liquidator
UK COAL: Warns of Liquidation if Restructuring Deal Fails



YPSO HOLDING: S&P Affirms 'B' Corp. Credit Rating; Outlook Stable
Standard & Poor's Ratings Services revised its outlook on French
cable operator Ypso Holding Sarl to stable from negative. "At the
same time, S&P affirmed its 'B' long-term corporate credit rating
on the group.

The outlook revision follows Ypso's successful refinancing of a
large part of its 2013-2015 maturities under existing credit
facilities with new long-term secured notes. In S&P's view, this
second refinancing transaction completed this year, combined with
the new set of covenants and new revolving credit facility (RCF)
granted in the first half of 2012, has enabled the group to
significantly improve its debt maturity profile and financial

"We also believe the group has preserved a sound free operating
cash flow (FOCF) generation capacity despite the rise in its
interest costs as it continues to refinance its debt maturities
at much higher rates than its existing bank debt. Still, we note
positively that Ypso was able to raise the new notes at rates
that were more than 300 basis points (bps) tighter than its
initial notes issuance in February 2012," S&P said.

"We project that Ypso will post low-single-digit revenue growth
over the next two years while preserving strong EBITDA margins at
just over 50%. We believe the group will capitalize on the
growing market penetration of its bundled service offerings--
either directly or as a wholesaler through a 'white-label'
business-to-customer wholesale contract. Additionally, triple-
play offers may protect and increase revenue streams as
subscribers migrate to higher-end offers, and improve customer
loyalty," S&P said.

"However, we believe the group's growth will remain constrained
by considerable customer churn rate as a result of the market's
maturity and fierce competition, Ypso's limited network coverage,
and significant losses of legacy analog customers," S&P said.

"Based on our expectation of a return to sustained moderate FOCF
of at least EUR120 million annually from 2013 under our base-case
scenario, we anticipate that adjusted gross leverage, excluding
shareholder loans, will remain at or above 5.5x over the next two
years. Including noncash pay shareholder loans, we expect Ypso's
adjusted leverage to remain at or above 8.0x," S&P said.

"The rating on Ypso is constrained by our view of the group's
financial risk profile as 'highly leveraged,' as our criteria
define the term, including aggressive debt leverage, and only
moderate FOCF generation. Additional rating weaknesses include
the intense competition in the consolidated French telecoms and
pay-TV markets, owing to the early, widespread adoption of
digital subscriber line technology in France, and the group's
somewhat incomplete network coverage," S&P said.

"The rating is supported by Ypso's 'adequate' liquidity position,
and by what we view as its 'fair' business risk profile, based on
its sound market positions and strong profitability. Ypso is one
of the leading providers of triple-play services in its franchise
areas. We consider that the group's premium network is of
superior quality than its competitors' digital subscriber line
(DSL) infrastructures, with sizable upgrades to fiber already
achieved," S&P said.

"The stable outlook reflects our expectation that Ypso will
deliver modest sales and EBITDA growth over the next 12 months,
despite ongoing fierce competitive pressures in the French fixed-
broadband market, and maintain strong profitability and adequate
liquidity," S&P said.

"It also factors in our view that the group's FOCF will likely
rebound to EUR120 million or more from 2013, while remaining
highly leveraged. Our ratio of adjusted debt-to-EBITDA for Ypso
will likely remain at or above 5.5x excluding shareholder loans
or at or above 8.0x including noncash pay shareholder loans, over
the next two years," S&P said.

"We might consider a negative rating action if a deterioration in
business performance led Ypso to record significantly less FOCF
generation and covenant headroom than we expect under our base
case," S&P said.

"We view rating upside as remote at this stage, owing to Ypso's
limited prospects for susbtantial FOCF generation growth and
deleveraging to below 5.0x, excluding non-cash pay shareholder
loans, and below 7.0x including shareholder loans, which could be
levels commensurate with a higher rating. At this point we do not
forecast that these levels can be reached over the next two
years," S&P said.


SUNSTROM GMBH: Former Management Buys Solarwatt AG Subsidiary
Sandra Enkhardt at reports that SunStrom GmbH has
been saved after former management purchased the company.  All
remaining jobs are expected to be maintained.

According to the report, insolvency administrator Rudiger
Wienberg relates that the Solarwatt AG subsidiary has been saved
after former managers Reiner Matthees and Stephan Riedel bought
SunStrom.  The restructuring was made in the context of a
"transferred insolvency."  As such, business will be carried out
under MR SunStrom GmbH. relates that Matthees and Riedel have said they
will lead the new company, which will continue to deal with the
planning and implementation of photovoltaic projects, and service
of existing installations.  The purchase price was not disclosed,
however it was said that all 64 workers will be kept on.

SunStrom filed for insolvency at the end of July.  On October 1,
the district court in Dresden opened insolvency proceedings.
More than half of the original 145-strong workforce were handed
their notice at the end of September.

SunStrom GmbH is a unit of the German solar-power plant developer
Solarwatt AG.


FREESEAS INC: Had US$20.8-Mil. Net Loss in 1st Half of 2012
FreeSeas Inc. reported a net loss of US$20.8 million on
US$8.9 million of operating revenues for the six months ended
June 30, 2012, compared with a net loss of US$49.4 million on
US$17.1 million of operating revenues for the same period last

The higher net loss for the six months ended June 30, 2011,
resulted primarily from the higher amount of vessel impairment
loss of US$47.3 million the Company recognized in the six months
ended June 30, 2011, compared to a vessel impairment loss of
US$12.5 million the Company recognized in the six months ended
June 30, 2012.

The Company's balance sheet at June 30, 2012, showed
US$120.8 million in total assets, US$104.1 million in total
current liabilities, and shareholders' equity of US$16.7 million.

According to the regulatory filing, based on the Company's cash
flow projections for the remaining of 2012, cash on hand and cash
provided by operating activities including the cash to be
provided upon the sale of the vessels currently classified as
held for sale will not be sufficient to cover scheduled debt
repayments as of June 30, 2012, operating expenses and capital
expenditure requirements for at least twelve months from the
balance sheet date.  "All of the above raises doubt regarding the
Company's ability to continue as a going concern."

In February, March and April 2012, the Company received
notifications from Deutsche Bank and First Business Bank that the
Company was in default under its loan agreements as a result of
the breach of certain covenants and the failure to pay principal
and interest due under the loan agreements.

On April 26, 2012, the Company was advised by Deutsche Bank that
it would approve the request to permanently amend the
amortization schedule including refinancing of the balloon due in
November 2012.  The Company and the bank entered into an amended
and restated facility agreement on Sept. 7, 2012.

"Although the Company will continue to seek waivers to certain
covenants from its remaining lender, FBB, and to restructure the
FBB loan, there can be no assurances that the Company will be
able to do so."

A copy of the consolidated financial statements for the six
months ended June 30, 2012, is available at

                        About FreeSeas Inc.

Headquartered in Athens, Greece, FreeSeas Inc., formerly known as
Adventure Holdings S.A., was incorporated in the Marshall Islands
on April 23, 2004, for the purpose of being the ultimate holding
company of ship-owning companies.  The management of FreeSeas'
vessels is performed by Free Bulkers S.A., a Marshall Islands
company that is controlled by Ion G. Varouxakis, the Company's
Chairman, President and CEO, and one of the Company's principal

The Company's fleet currently consists of six Handysize vessels
and one Handymax vessel that carry a variety of drybulk
commodities, including iron ore, grain and coal, which are
referred to as "major bulks," as well as bauxite, phosphate,
fertilizers, steel products, cement, sugar and rice, or "minor
bulks."  As of Oct. 12, 2012, the aggregate dwt of the Company's
r operational fleet is approximately 197,200 dwt and the average
age of its fleet is 15 years.

*     *     *

As reported in the TCR on July 18, 2012, Ernst & Young (Hellas)
Certified Auditors Accountants S.A., in Athens, Greece, expressed
substantial doubt about FreeSeas' ability to continue as a going
concern, following its audit of the Company's financial
statements for the fiscal year ended Dec. 31, 2011.  The
independent auditors noted that the Company has incurred
recurring operating losses and has a working capital deficiency.
"In addition, the Company has failed to meet scheduled payment
obligations under its loan facilities and has not complied with
certain covenants included in its loan agreements with banks."

* GREECE: U.S. Distressed Debt Investors Eye Hedge Funds
Charles Forelle, Matina Stevis, and Matt Wirz at Dow Jones
Newswires report that ever since Greece completed a debt
restructuring in March that turned EUR200 billion in bonds into
about EUR60 billion, distressed-debt investors -- many at U.S.
hedge funds -- have been picking them over.

Hedge-fund analysts have flooded Greek finance officials with
requests for information, Dow Jones relates.  Prices have
climbed, Dow Jones notes.

Funds that bought over the summer have done well, Dow Jones
discloses.  Their performance doesn't mean much for Greece
itself, Dow Jones says.  Some Greek funds and banks have notched
gains, but the government is years away from being able to issue
new bonds, according to Dow Jones.

Indeed, even through the rosiest of rose-colored glasses, Greece
looks troubled, Dow Jones states.  Almost no one thinks it will
emerge from its deep slump any time soon, or even that it will
pay back all it owes, Dow Jones says.  The bonds are risky and
the market small, Dow Jones says.  Just 20% of Greece's EUR300
billion in debt is in private hands; the rest is held by the
European Central Bank, the International Monetary Fund and the
euro-zone governments that have bailed Greece out, Dow Jones

But, the bulls argue, Greek bonds have been so cheap it hardly
matters, Dow Jones notes.

Even in the case of a debt default, creditors are likely to get a
portion of their money back, Dow Jones states.

Most worrying for private investors is that European policy
makers remain in charge, according to Dow Jones.  In the March
restructuring, policy makers forced pain on private investors,
but didn't cut the face value of their own loans, Dow Jones says.

Private investors have better legal protections now, but they
aren't in control, Dow Jones states.


Standard & Poor's Ratings Services placed its ratings, including
its 'BB-' corporate credit rating, on Wind Telecomunicazioni SpA,
Italy's second largest integrated alternative telecommunications
operator, on CreditWatch with negative implications.

"The recovery rating on the senior secured facilities and notes
is unchanged at '2', indicating our expectation of substantial
(70%-90%) recovery in the event of a payment default," S&P said.

"The recovery ratings on Wind's third-lien (high-yield) notes and
subordinated payment-in-kind (PIK) notes remain unchanged at '4'
and '6', indicating our expectation of average (30%-50%) and
negligible (0%-10%) recovery for noteholders in the event of a
payment default," S&P said.

"The CreditWatch placement follows Wind's announcement that it
has approached its senior facilities lenders with a request to
amend the loans' covenants, which were set in 2010. The
CreditWatch reflects the likelihood that we could lower the
rating on Wind if the company is unable to increase the headroom
on its covenants. We have therefore changed our assessment of
Wind's liquidity profile to 'less than adequate.' However, in our
base-case scenario, we assume that Wind will either succeed with
the proposed amendments, or get support from its shareholder,
VimpelCom Ltd. (BB/Stable/--). The CreditWatch placement also
reflects a possibility of a one-notch downgrade if we see no
potential for improvement in Wind's capital structure over the
medium term," S&P said.

"The tightening headroom on the covenants resulted, among other
factors, from the higher than originally anticipated Long-Term
Evolution (LTE) spectrum investments and more steep mobile
termination rates (MTR) cuts, as well as tougher overall
conditions in the Italian telecoms market. However, given that
Wind continues to outperform the Italian telecoms market and
deliver positive earnings growth excluding the impact of
regulatory actions, we view the possibility of the lenders
requiring early repayment of the loans as relatively low. We also
believe that if Wind does not receive consent from the lenders,
it has some short-term flexibility to comply with the existing
covenants through internal cash flow management, or VimpelCom may
provide it with some sort of support in order to avoid a covenant
breach," S&P said.

"We intend to resolve the CreditWatch within the next 90 days. We
will reassess the company's liquidity position depending on the
outcome of the covenant amendment process. We could lower the
rating on Wind by one or more notches if the company does not get
the required amendments, as it would face a significant risk of
covenant breach in 2013," S&P said.

"We will also review the company's revised business plan and
reassess the sustainability of the company's capital structure
and its improvement potential. Given our anticipation of limited
prospects for deleveraging on a stand-alone basis because of
relatively weak free cash flow generation over the next 18
months, a one-notch downgrade remains possible regardless of the
outcome of the covenant amendment process," S&P said.


KAZAKHSTAN ENGINEERING: Moody's Assigns 'Ba2' CFR; Outlook Stable
Moody's Investors Service has assigned a Ba2 corporate family
rating (CFR) and probability of default rating (PDR), as well as
a national scale rating (NSR), to JSC NC Kazakhstan
Engineering. Concurrently, Moody's has assigned a (P)Ba2 rating,
with a loss given default (LGD) assessment of LGD4/59%, to the
proposed KZT15 billion three-year domestic bond to be issued by
Kazakhstan Engineering. The outlook on all ratings is stable.
This is the first time Moody's has assigned a rating to
Kazakhstan Engineering.

Ratings Rationale

As Kazakhstan Engineering is fully owned by the Government of
Kazakhstan through the National Welfare Fund Samruk-Kazyna,
Moody's applies its rating methodology for government-related
issuers (GRIs) in determining the group's CFR. According to this
methodology, the CFR is driven by a combination of (1) Kazakhstan
Engineering' baseline credit assessment (BCA) of b2; (2) the Baa2
local currency rating of the Kazakh government; (3) the very high
default dependence between the group and the government; and (4)
the strong probability of provision of state support to the group
in the event of financial distress.

Kazakhstan Engineering's assigned b2 BCA reflects the group's (1)
small size, with expected revenue of $380 million as of end-2012;
(2) lack of track record of operating and financial performance
under the new process of contracting state orders, which is to be
implemented at the end of 2012; (3) significant customer
concentration, with 78% of 2011 revenues derived from state
orders and sales to state-controlled companies, which, however,
provides for some revenue stability; (4) low market share in the
civil segment; (5) lack of geographical diversification, as a
predominant portion (around 90%) of the group's revenue is
generated from domestic sales; and (6) overall exposure to an
emerging market operating environment with a less developed
regulatory, political and legal framework.

At the same time, the BCA factors in Kazakhstan Engineering's (1)
monopoly position in the Kazakh defense machinery industry; (2)
favorable conditions enjoyed by the group in terms of processing
state orders, as up to 75% of payments are received in advance;
(3) status as a preferred supplier for large state-controlled
customers, such as national monopolies KazMunayGas NC JSC (KMG)
and Kazakhstan Temir Zholy (KTZ) in the civil segment, based on
the regulations prescribing that national companies purchase not
less than 60% of machinery and equipment from domestic suppliers;
(4) moderate supplier concentration, with no supplier
representing more than a 10% share of the group's total
purchases; (5) moderate expected leverage of 2.9x debt/EBITDA as
of end-2012; (6) adequate liquidity, supported by planned equity
injections from the sole shareholder; and (7) low foreign
currency risk, as all the group's debt is denominated in the
Kazakhstani tenge.

Moody's assesses the default dependence between the Kazakh
government and Kazakhstan Engineering as very high given that (1)
a 90% portion of the group's revenues are derived from domestic
sales; and (2) 62% of its total revenues come from the state

The rating agency assesses the probability of support from the
government as strong on account of (1) Kazakhstan Engineering's
importance to state security; (2) the absence of domestic
competitors in the Kazakh defense segment; and (3) the fact that
the government provides equity injections and low interest rate
loans to Kazakhstan Engineering through Samruk-Kazyna to finance
the group's projects.

The rating assigned to the proposed bond is equivalent to
Kazakhstan Engineering's CFR, reflecting Moody's assumption that
the bond will rank pari passu with the other unsecured and
unsubordinated financial debt of Kazakhstan Engineering group.

Moody's notes that Kazakhstan Engineering group currently has a
significant amount of secured debt located at the level of
operating companies. The rating agency's assumption of the
unsubordinated nature of the proposed bond is based on its
expectation that the group will repay most of its operating
companies' debt including all the secured debt, with the proceeds
from the bond placement, and will raise any new debt on an
unsecured basis and at the holding company level going forward.
Following the successful placement of the bond, the group will
have no secured debt or debt that is more senior to the bond.

The stable outlook on Kazakhstan Engineering's ratings
incorporates Moody's expectation that (1) the Kazakh government
will continue to support the group; (2) domestic demand for the
group's products will remain stable; and (3) the group will
maintain debt/EBITDA of less than 3.5x and maintain adequate

What Could Change The Rating Up/Down

Moody's does not envisage positive pressure being exerted on the
ratings in the next 12-18 months. However, the rating agency
could consider upgrading Kazakhstan Engineering's ratings by one
notch if the group were to build a track record of maintaining a
strong financial profile over time, while materially increasing
the scale of its business.

Negative pressure could be exerted on the ratings if (1)
Kazakhstan Engineering's debt/EBITDA were to increase above 3.5x
on a sustainable basis; or (2) its liquidity were to deteriorate
materially. A one-notch downgrade of the sovereign rating would
not in itself trigger a downgrade of Kazakhstan Engineering's
ratings, provided that all the other GRI inputs remain unchanged.

Principal Methodology

The principal methodology used in rating Kazakhstan Engineering
was the Global Aerospace and Defense Industry Methodology
published in June 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 and the
Government-Related Issuers: Methodology Update published in July

JSC NC Kazakhstan Engineering is a state-controlled holding
company consolidating the defense, machinery and engineering
enterprises in Kazakhstan. The group executes around 75% of state
defense orders and produces around 10% of machinery products in
Kazakhstan. The group is 100% owned by the Kazakhstan National
Welfare Fund Samruk Kazyna and managed by the Kazakhstan Ministry
of Defence. In 2011, Kazakhstan Engineering generated revenue of
$229 million.

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.


CLONDALKIN INDUSTRIES: Moody's Affirms 'B3' CFR; Outlook Negative
Moody's Investors Service affirmed Clondalkin Industries B.V.'s
B3 Corporate Family Rating and Probability of Default Rating as
well as the B2 rating on the group's senior secured floating rate
notes issued by Clondalkin Acquisition B.V. and the Caa2 rating
on its senior notes. Concurrently, the outlook on all ratings was
changed to negative from stable.

Ratings Rationale

The outlook change to negative from stable reflects uncertainty
regarding a timely refinancing of the group's significant debt
maturities which are due in December 2013 and March 2014 and
represent all of the Group's debt financing arrangements.

Clondalkin's operating profitability in 2012 continues to be
challenged by weak macroeconomic environment demand conditions in
Europe and supply chain challenges in North America. These have
prompted a slower than expected recovery in operating performance
in 2012 despite incremental profitability from its recent printed
components acquisition and benefits from synergies and
restructuring measures. With high net leverage point in time at
close to 6x on a reported basis (6.4x on a Moody's as adjusted
basis and 7.4x on a gross debt basis), Moody's cautions that
Clondalkin could be challenged to implement a successful
refinancing, despite currently benign high yield capital market

Moody's understands that management is currently pursuing
alternatives to expand the refinancing possibilities, including
the disposal of certain parts of the business and introducing new
asset based borrowing arrangements such as receivables
securitization. Moody's awaits prompt completion of these various
actions; which inevitably have associated market execution risks
as to value and timing, as they are necessary elements to a
successful refinance.

Moody's continues to recognize Clondalkin's solid business
profile, benefitting from its good substrate diversity, its
strong market position in several niche markets with solid
geographical diversification, its continued high level of asset
efficiency, and its ability to generate meaningful positive free
cash flows on a sustainable basis, as evidenced by a FCF/debt
ratio of 5.8% per June 2012 on a rolling twelve months basis. In
addition, short-term liquidity remains ample with EUR84 million
of cash on hand as of June 2012, access to an undrawn EUR19
million revolving facility and a history of positive free cash
flow generation, although cash generated has in the past been
spent on acquisitions.

The rating could be further downgraded absent progress in
securing cash proceeds from alternative measures such as asset
disposals and/or securitization or other measures to support a
refinancing over the coming months. In addition, the inability to
gradually improve operating profitability could result in further
negative rating actions.

A stabilization of the outlook requires visibility on
Clondalkin's execution of an orderly refinancing, including the
application of some of its cash balance to reduce debt in case of
a refinancing exercise, which would lead to a reduction in gross
leverage, coupled with a recovery in operating profitability,
that would leave Clondalkin with a solid liquidity position and a
more sustainable financial profile, as evidenced by Debt/EBITDA
clearly below 7x.

Outlook Actions:

Issuer: Clondalkin Industries B.V.

Outlook, Changed To Negative From Stable

Issuer: Clondalkin Acquisition BV

Outlook, Changed To Negative From Stable


Issuer: Clondalkin Industries B.V.

Senior Unsecured Regular Bond/Debenture, Downgraded to LGD6, 90%
from LGD5, 89%

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

Clondalkin is among the leading converters for a number of niche
packaging products. In the last twelve months ending June 2012,
the company recorded sales of EUR950 million, which were
generated in Europe (68%) and North America (32%). Clondalkin
Industries B.V., which is owned by Warburg Pincus Funds and
management, is domiciled in Amsterdam, Netherlands.

DECO 14 - PAN EUROPE: S&P Cuts Rating on Class D Notes to 'CCC-'
Standard & Poor's Ratings Services lowered its credit ratings on
DECO 14 - Pan Europe 5 B.V.'s class A-1, A-2, A-3, B, C, and D
notes. "At the same time, we have affirmed our ratings on the
class E, F, and G notes," S&P said.

"The rating actions follow the interest shortfall that occurred
on the class D, E, F, and G notes on the July 2012 interest
payment date (IPD), and reflect our assessment of the issuer's
ability to pay interest on all classes of notes on future IPDs,"
S&P said.

"According to the July 2012 cash manager report, the class D, E,
F, and G notes experienced interest shortfalls. Although the
existing interest shortfall on the class D notes is, in our view,
minor, we believe that the risk of additional interest shortfalls
on this class has increased. In our opinion, the issuer's ability
to service the senior classes of notes will likely deteriorate,
given the upcoming refinancing of some of the loans within the
next 12 to 18 months and the transaction's cash flow mechanics.
In light of these factors, we now believe that the senior classes
of notes have become more vulnerable to future cash flow
disruptions," S&P said.

"We understand that the excess spread, which is distributed to
the class X notes, is not available to mitigate interest
shortfalls resulting from partial interest collections on the
underlying loan pool or from the payment of certain prior-ranking
expenses. The issuer relies on the liquidity facility to address
timely payment of interest on the notes. However, the transaction
documents indicate to us that the liquidity facility is not
available to cover interest shortfalls under the notes, if such
shortfalls have resulted from," S&P said:

    Extraordinary expenses payable to the transaction parties
    (e.g., special servicing fees, special servicing expenses, or
    certain payments due to the liquidity facility provider); or

    The reduction of liquidity facility drawings, if required to
    meet interest shortfalls under any of the loans, following
    the determination of an appraisal-reduction amount (the
    appraisal-reduction mechanism prevents drawings on the
    portion of the securitized loans that represents more than
    90% or 98% of the securitized loan).

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

"We have therefore lowered to 'CCC- (sf)' from 'B+ (sf)' our
rating on the class D notes," S&P said.

"We have also lowered our ratings on the class A1, A2, A3, B, and
C notes as we believe that these classes of notes are now more
vulnerable to interest shortfalls. Further rating actions would
be likely if further interest shortfalls occur," S&P said.

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

"DECO 14 - Pan Europe 5 is a pan-European commercial mortgage-
backed securities (CMBS) transaction that closed in March 2007,
and is currently secured on 12 pan-European commercial real
estate loans," S&P said.


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

"As highlighted in our Nov. 8, 2011 Advance Notice Of Proposed
Criteria Change, our review may result in changes to the
methodology and assumptions that we use when rating European
CMBS. Consequently, it may affect both new and outstanding
ratings in European CMBS transactions," S&P said.

"On Sept. 5, 2012, we published our updated criteria for CMBS
property evaluation. These criteria do not significantly change
our longstanding approach to deriving property net cash flows and
values in European CMBS transactions. We do not expect any rating
action in Europe as a result of adopting these criteria," S&P

"However, because of its global scope, our criteria for global
CMBS property evaluation do not include certain market-specific
adjustments. We will therefore publish an application of these
criteria to European CMBS transactions along with our updated
criteria for rating European CMBS," S&P said.

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


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

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


Class             Rating
            To             From

DECO 14 - Pan Europe 5 B.V.
EUR1.491 Billion Commercial Mortgage-Backed Floating-Rate Notes

Ratings Lowered

A-1         A- (sf)        A (sf)
A-2         BBB+ (sf)      A (sf)
A-3         BBB (sf)       A (sf)
B           BB (sf)        BBB+ (sf)
C           B- (sf)        BBB (sf)
D           CCC- (sf)      B+ (sf)

Ratings Affirmed

E           D (sf)
F           D (sf)
G           D (sf)


ROMREAL: Could Default If Alpha Bank Issue Not Addressed
RomReal provided updates on its "serious financial situation."

The Company has a bullet loan of EUR11.6 million with Alpha Bank
in Romania which matures on November 30, 2012.  All interest on
this loan up to maturity has been pre-paid in advance, but the
principal payment will become due on the maturity date.  The
Company does not have sufficient cash to make this payment, or
any significant down-payment, as it has been very difficult to
divest assets during the severe downturn in Romanian real-estate

RomReal's management is currently in ongoing discussions with
Alpha Bank regarding a restructuring of the loan, but no
agreement has been reached at this stage.  The Management
therefore wants to inform that the Company could enter in a
default situation very soon if a solution with Alpha Bank is not
found in time.

The Management of the Company has over the years put a
substantial effort into reducing the operating costs of the
company to adjust to the difficult market environment and secure
cash to service payments on the loan and the Company's ongoing
operating expenses.

The Company will need to implement additional significant cost
savings to ensure that there is sufficient working capital to
fund its operations going forward.

If a solution is reached with Alpha Bank on viable terms, it is
likely that a capital raising from the shareholders, possibly
through a rights issue, will be needed to fund the Company's
operations going forward.  The details of such capital raising
will be very dependent on the potential terms of the loan
restructuring and the Company will therefore inform about further
details on such a possible issue once the situation with Alpha
Bank becomes clearer.

As the Company has disclosed in its previous quarterly
statements, the Romanian real estate market is in a severe
downturn with very few transactions taking place in the
residential segment which is the focus area of the Company's
assets.  Bank financing of both construction and mortgages in
Romania has almost come to a halt.

On this background, the Board is of the opinion that the external
valuation of the Company's assets carried out by the independent
valuation firm in connection with the 2012 year-end audit, could
lead to further reductions in the valuations of the Company's
assets and hence a reduction in the IFRS based NAV.

RomReal is a leading Romanian real estate investment company,
listed on the Oslo Stock Exchange.


ROSBANK: Fitch Affirms 'bb' Viability Rating
Fitch Ratings has assigned Rosbank's (RB) RUB10 billion issue of
BO-4 senior unsecured bonds with a final maturity in September
2015 and a two-year put option, a final Long-term local currency
rating of 'BBB+' and National Long-term rating of 'AAA(rus)'.

RB has a Long-term foreign and local currency Issuer Default
Rating (IDR) of 'BBB+' with a Stable Outlook, a National Long-
term rating of 'AAA(rus)' with a Stable Outlook, a Short-term
foreign currency IDR of 'F2', a Viability Rating of 'bb', and a
Support Rating of '2'.

S E R B I A   A N D   M O N T E N E G R O

NOVA AGROBANKA: Postanska Stedionica to Take Over Assets
Gordana Filipovic and Misha Savic at Bloomberg News report that
Serbia's Postanska Stedionica Banka AD will take over the assets
of Nova Agrobanka.

According to Bloomberg, the government in the capital Belgrade
said in an e-mailed statement on Monday that the Cabinet will
submit to parliament a draft law on the transfer of so-called
problematic bank assets to the state.

Bloomberg relates that Finance Minister Mladjan Dinkic said, "The
decision is designed to preserve financial stability," adding
that the transaction will expand Postanska's assets to "more than
one billion euros."

The government decided to shut down Nova Agrobanka, set up in May
as a "bridge bank" after the collapse of Agrobanka AD, leaving
the government time to work out a permanent solution, Bloomberg
recounts.  Authorities fired Agrobanka's management on Dec. 29
and placed it in receivership after inspectors discovered its
capital didn't match the risk it had assumed, Bloomberg

Agrobanka, in which the government held a 20% stake, had an
unaudited 2011 loss of RSD29.7 billion (US$311.4 million)
following a full-year pretax profit of RSD1.18 billion in 2010
and a loss of 2.27 billion dinars at the end of September 2011,
Bloomberg notes.  The central bank revoked Agrobanka's license on
May 26, Bloomberg states.

Saving Nova Agrobanka, which is both "illiquid and insolvent,"
would have cost Serbia "at least EUR230 million (US$300.2
million) and that's irrational," Mr. Dinkic, as cited by
Bloomberg, said.

Nova Agrobanka held a total of EUR400 million in insured and non-
insured savings and other deposits, Bloomberg discloses.
Bloomberg notes that Mr. Dinkic said it has been making a loss of
"two million euros per month" after the previous government also
transferred some "problematic credits".

Bloomberg relates that Mr. Dinkic said Agrobanka's minority
shareholders will have "all the rights according to Serbia's
bankruptcy law".

Minority shareholders, who announced plans for a legal action
against Serbia, said on Oct. 19 they would "continue with legal
activities to regain expropriated property" the value of which
they put at EUR70 million, Bloomberg notes.

Agrobanka AD is a commercial bank.  The Bank offers retail and
corporate services in loans for current agricultural productions,
such as cattle and plant production, farming machinery, food
processing, delivery vehicles, and other agricultural operations.


BANKIA SA: Amongs Banks to Obtain EU Approval for Gov't. Bailouts
Aoife White at Bloomberg News reports that EU Competition
Commissioner Joaquin Almunia said Bankia and three other Spanish
lenders will win European Union approval for government bailouts
by the end of November.

"The Bank of Spain, the Commission and the management of the four
entities have been working on their restructuring plans during
the summer, and the commission will take a decision approving
them by the end of November," Bloomberg quotes Mr. Almunia as

Bloomberg relates that Mr. Almunia said restructuring plans for
Spanish banks that received help may need to make balance-sheet
reductions and accept bans on acquisitions or price leadership.
He said the balance sheet reductions may be caused by the
transfer of impaired assets to Spain's bad bank, called SAREB,
Bloomberg notes.

Banks that receive government support require EU approval for the
aid and must draw up restructuring plans that may require them to
sell units or accept curbs on their business to compensate for
the advantage the state aid gives them over rivals, Bloomberg

According to Spanish plans, "the whole Spanish financial system
will be fully capitalized by mid-2013 at the latest," Mr.
Almunia, as cited by Bloomberg, said.

Mr. Almunia said the banks can seek government funding if they
aren't able to obtain private capital by the end of June 2013,
Bloomberg notes.

Bankia SA is a Spain-based financial institution principally
engaged in the banking sector.  The Bank represents a universal
banking business model based on multi-brand and multi-channel
management, offering its products and services to various
customer segments, such as individuals, small and medium
enterprises, large corporations, as well as public and private
institutions.  The Company's business is structured into seven
areas: Retail Banking, Business Banking, Private Banking, Asset
Management and Bancassurance, Capital Markets and Holdings.

RIVOLI PAN: Moody's Affirms 'Ba3' Rating on Class X Notes
Moody's Investors Service has confirmed the Baa3(sf) rating of
the Class A notes issued by Rivoli Pan Europe 1 plc following the
confirmation of the Government of Spain's government bond rating
at Baa3. The rating action concludes the review for possible
downgrade initiated by Moody's on June 19, 2012. At the same
time, Moody's affirmed the rating of the Class X notes at Ba3(sf)
because the current rating already incorporates the updated risk
assessment of the underlying pool. Moody's does not rate the
Class B and C notes issued by Rivoli Pan Europe 1.


    EUR413M Class A Notes, Confirmed at Baa3 (sf); previously on
    Jun 19, 2012 Downgraded to Baa3 (sf) and Placed Under Review
    for Possible Downgrade


    X Notes, Affirmed at Ba3 (sf); previously on Aug 22, 2012
    Downgraded to Ba3 (sf)

Ratings Rationale

The confirmation at Baa3(sf) of the Class A notes issued by
Rivoli Pan Europe 1 plc reflects the confirmation of the
Government of Spain's government bond rating at Baa3 and the
assignment of a negative outlook.

Moody's rating of the Class A notes incorporates the risk that
the factors driving the Spanish sovereign rating will lead to a
significant and uniform deterioration in asset performance. In
particular, the default probabilities of the underlying loans at
loan maturity are driven by constrained commercial real estate
lending and low investor demand for assets in Spain. Under
Moody's highly adverse scenario, the rating agency assumes that
the two loans secured by properties located in Spain, the Parque
Principado and the Santa Hortensia Loans (approximately 60% of
the pool balance) will default and the underlying properties will
be sold only at severely distressed values. Given the
confirmation of the Spanish government bond rating, the
probability of such a scenario occurring has not increased in
likelihood and has, therefore, led Moody's to confirm the rating
of the Class A notes.

As part of its review of the Class A notes, Moody's also reviewed
the performance of the remaining two loans in the pool that are
not backed by collateral in Spain: The Rive Defense Loan (21% of
the pool) and the Blue Yonder Loan (19% of the pool). The
performance of the Blue Yonder Loan is in line with Moody's
expectations. Moody's has stressed its refinancing risk
assessment of the Rive Defense Loan given the non-payment of the
loan on its scheduled maturity date in July 2012 and the six-
month loan extension that has been granted. The current rating of
the Class A notes reflects the reassessment of these loans
combined with the risk assessment associated with the loans
backed by collateral in Spain.

Rating Methodology

The principal methodologies used in the ratings were "Moody's
Approach to Real Estate Analysis for CMBS in EMEA: Portfolio
Analysis (MoRE Portfolio)" (April 24, 2006) and "Moody's Approach
to Rating Structured Finance Interest-Only Securities" (February
22, 2012).

Other factors used in this rating are described in "European
CMBS: 2012 Central Scenarios" (February 9, 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

On August 21, 2012, Moody's released a Request for Comment
seeking market feedback on proposed adjustments to its modelling
assumptions. These adjustments are designed to account for the
impact of rapid and significant country credit deterioration on
structured finance transactions. If the adjusted approach is
implemented as proposed, the rating of the notes affected by the
rating action may be negatively affected.

* SPAIN: Moody's Downgrades Ratings of Five Regions
Moody's Investors Service has downgraded by one or two notches
the ratings assigned to five Spanish regions -- Andalucia,
Extremadura, Castilla-La Mancha, Catalunya, and Murcia.

At the same time, Moody's has confirmed the ratings of the Basque
Country and the Diputacion Foral de Bizkaia at Baa2, one notch
above the sovereign bond ratings. In addition, the ratings of the
regions of Madrid, Castilla y Leon and Galicia have also been
confirmed at Baa3, on par with the sovereign ratings. Finally,
the ratings of the region of Valencia and of four government-
related entities in Valencia have been confirmed at B1.

Further to these rating actions, all affected regions carry
negative outlooks in line with the negative outlook carried by
the Baa3 sovereign bond rating of the Government of Spain. The
rating actions conclude the review for downgrade that Moody's
initiated on June 15, 2012.

A detailed list of the issuers and ratings affected by this
rating action is provided at the end of this press release.

Ratings Rationale



Moody's decision to downgrade the ratings of the four Spanish
regions of Andalucia (to Ba2 from Baa3), Castilla-La Mancha (to
Ba3 from Ba2), Catalunya (to Ba3 from Ba1) and Murcia (to Ba3
from Ba1) was driven by the deterioration in their liquidity
positions, as evidenced by their very limited cash reserves as of
September 2012 and their significant reliance on short-term
credit lines to fund operating needs.

In addition, Catalunya, Andalucia and Murcia face large debt
redemptions in Q4 2012 when retail bonds issued in 2011 are due
to mature. In this context, five regions -- namely, Catalunya,
Andalucia, Murcia, Valencia and Castilla La Mancha -- have
already requested liquidity support from the Fondo de Liquidez
Autonomico (FLA) to cover their financing needs in the second
half of 2012.

While the FLA greatly reduces the risk of a region's liquidity
driven default in the short term, it does not address their
fundamental economic and financial weaknesses, namely: (1) the
significant uncertainty regarding viable long-term funding
alternatives, and the resulting considerable reliance on
government funding; and (2) the regions' significant difficulties
in controlling their deficit and debt trajectories in an economic
environment in which the implementation of cost-cutting measures
to redress the regions' structural deficits will likely take
longer than expected.

Thus, Moody's assesses the standalone creditworthiness (Baseline
Credit Assessment or BCA) of regions having requested FLA funding
as being very weak, reflecting Moody's view that these regions
would have serious difficulties in meeting debt obligations
without it. The very low BCAs also reflect Moody's view that
these regions, faced with persistent fiscal challenges and weak
liquidity positions, will need to seek further external support
in the next year. At the same time, their ratings incorporate
Moody's assessment of a heightened likelihood of government
support, as corroborated by the central government's track record
of support over the last few months, which partially offsets the
very weak standalone creditworthiness.


Moody's decision to downgrade Extremadura's rating by one notch
to Ba1 from Baa3 reflects the region's persistently high
operating deficits and its weak liquidity position. While the
savings measures that the region is currently implementing will
help lower the deficit from the 4.59% recorded in 2011, poor
budget results in H1 2012 suggest that Extremadura will likely
miss the deficit target by a wide margin. Moreover, Moody's
assesses the region's liquidity position as being weak, as
evidenced by its extensive use of short-term credit lines. While
Extremadura has limited refinancing needs in 2012, its large
deficit expected in 2012 will result in significant borrowing
needs (EUR494 million, or 13% of its operating revenue), for
which it has only been able to secure EUR56 million to date.



Moody's decision to confirm the Baa2 ratings of the Basque
Country and the province of Bizkaia reflects the confirmation of
the sovereign bond ratings on October 16, 2012 as well as their
unchanged fiscal and financial positions since their downgrade on
June 15, 2012. The unique and constitutionally protected tax
regime of the Basque Country and the province of Bizkaia
currently allows them to retain enough credit strength to
maintain their ratings one notch above that of the sovereign. In
addition, their limited borrowing needs in 2012 and 2013 as well
as their comfortable liquidity positions limit the impact of
difficult market conditions on their financial performances.


The rating agency's decisions to confirm the Baa3 regions of
Castilla y Leon, Galicia and Madrid also reflects the
confirmation of the sovereign bond ratings on October 16, 2012
and the regions' unchanged fiscal and financial positions since
their downgrade on June 15, 2012. Although the three regions have
reported stronger financial performances than other Moody's-rated
Spanish regions throughout the crisis, the rating agency notes
that their income stream largely relies on state transfers and
shared taxes with the sovereign, thus capping their ratings at
the level of the sovereign rating.


Moody's decision to confirm Valencia's B1 debt rating reflects
the fact that the region's high debt ratios and tight liquidity
position are already reflected in the region's non-investment-
grade rating, currently the lowest amongst Moody's-rated regions
in Spain.

Valencia has a high level of amortizations remaining before
December 2012, which, combined with its low cash on hand and
extensive use of its credit line facilities, forced the region to
request liquidity support from the sovereign through the FLA.
This follows a request for financing support in December 2011,
subsequent to the region's difficulties in refinancing its retail
bond maturing at that time. While Moody's views the region's
consolidation efforts outlined in its restructuring plan
positively, the region is likely to miss the deficit target of
1.5% of regional GDP in 2012.

What Could Move The Ratings Up/Down

A stabilization of the outlooks or an upgrade of the ratings
would require (1) the stabilization or upgrade of the sovereign
rating; and (2) successful plans from the regional
administrations to restore their fiscal performances and reverse
debt ratios.

Any further deterioration in the operating environment in Spain
that would exert pressure on the sovereign rating would also have
a negative impact on the ratings of Spanish sub-sovereigns. In
addition, any sign of weakening government support would be a
credit-negative factor. Finally, a failure of any individual sub-
sovereign to progress towards fiscal consolidation targets would
add pressure to that specific rating.

Ratings Affected

The ratings of the following five regions have been downgraded:

- Junta de Extremadura: long-term issuer rating downgraded by
   one notch to Ba1 from Baa3; negative outlook;

- Junta de Andalucia: long-term issuer and debt ratings
   downgraded by two notches to Ba2 from Baa3; negative outlook;

- Comunidad Autonoma de Murcia: long-term issuer and debt
   ratings downgraded by two notches to Ba3 from Ba1; negative

- Castilla-La Mancha: long-term issuer and debt ratings
   downgraded by one notch to Ba3 from Ba2; negative outlook;

- Catalunya: long-term issuer and debt ratings downgraded by two
   notches to Ba3 from Ba1; negative outlook; short-term rating
   affirmed at Not-Prime;

The ratings of the following regions or entities have been

- Basque Country: long-term issuer and debt ratings confirmed at
   Baa2; negative outlook;

- Diputacion Foral de Bizkaia: long-term issuer rating confirmed
   at Baa2; negative outlook;

- Comunidad Autonoma de Madrid: long-term issuer rating
   confirmed at Baa3; negative outlook;

- Junta de Castilla y Leon: long-term issuer and debt ratings
   confirmed at Baa3; negative outlook;

- Comunidad Autonoma de Galicia: long-term issuer rating
   confirmed at Baa3; negative outlook;

- Region of Valencia: debt ratings confirmed at B1; negative
   outlook; short-term rating affirmed at Not-Prime;

- Instituto Valenciano de Finanzas: debt rating confirmed at B1,
   negative outlook, in line with Valencia's ratings;

- Notes of CACSA and Universities of Valencia (Universidad de
   Valencia, Universidad de Alicante, Universidad Jaume 1 de
   Castellon and Universidad Politécnica de Valencia) confirmed
   at B1, negative outlook;

- Notes of Feria Valencia: underlying rating confirmed at B1,
   negative outlook (A and B Certificates).

Principal Methodologies

The methodologies used in these ratings were "Regional and Local
Governments Outside the US" published in May 2008, and "The
Application of Joint-Default Analysis to Regional and Local
Governments" published in December 2008.

Moody's methodology for rating a security insured by a financial
guarantor considers the higher of (i) the guarantor's rating, and
(ii) the underlying rating of the security.


FINANSBANK: Fitch Affirms 'BB-' Support Rating Floor
Fitch Ratings has assigned Finansbank's forthcoming medium-term
issue of senior unsecured bonds an expected rating of

The expected rating is in line with Finansbank's Long-term
foreign currency Issuer Default Rating (IDR), which is driven by
the bank's intrinsic financial strength, measured by the
Viability Rating (VR).  Despite on-going problems, Finansbank has
not been affected by National Bank of Greece (NBG) or Greek-
related contagion.  NBG (Long-term IDR 'CCC'; VR 'f') controls
94.8% of Finansbank.

Finansbank's franchise is well established, particularly within
Turkey's dynamic retail banking sector.  Management has
demonstrated its ability to respond quickly to business cycle
changes, while delivering solid profitability, and financial
ratios are sound.

Finansbank is Turkey's fifth largest private bank with a domestic
deposit share of around 4.5%.

Finansbank is rated as follows:

  -- Long-term foreign and local currency IDRs 'BBB-',
     with Stable Outlooks
  -- Short-term foreign and local currency IDR 'F3'
  -- Viability Rating 'bbb-'
  -- Support Rating '3'
  -- Support Rating Floor affirmed at 'BB-'
  -- National Long-term Rating 'AAA(tur)' with Stable Outlook
  -- Senior unsecured bonds assigned an expected rating of 'BBB-

U N I T E D   K I N G D O M

LABELSPRINT: In Administration, Sold in Pre-Pack Deal
Labels and Labeling reports that Labelsprint was sold in a
prepack deal after falling into administration.

Kevin Murphy and Andrew Poxon of Leonard Curtis Recovery were
appointed on September 13.

Labelsprint production manager Gwyn Williams registered a new
company, JWS Print, with Companies House on August 22 - less than
a month before Labelsprint went into administration, according to
Labels and Labeling.

The report notes that Labels and Labeling said that in his new
role as director of JWS, Williams said: "JWS has taken on all the
assets and goodwill of Labelsprint and continues to trade, as a
going concern, under the same name."

"We have had some difficulties and we have had to take some
decisive and difficult actions to restructure our business for
the future . . . .  Reports of our death have been greatly
exaggerated," the report quoted Gavin Scott, managing director of
Labelsprint, as saying.

The report adds that Mr. Scott will still be involved in the new
company but his role is undecided as yet.

Labelsprint is a Welsh digital label producer.

MANGANESE BRONZE: In Administration After Failing to Secure Cash
The Washington Post Business reports that Manganese Bronze said
it was going into administration after failing to secure an
injection of cash from one of its largest shareholders.

Manganese has been losing money for years, hit both by Britain's
economic downturn and stiff rivalry from vehicles such as the
Vito, made by Mercedes, an arm of German car giant Daimler AG,
according to The Washington Post Business.  The report relates
that Manganese Bronze launched its latest model, the TX4, in
2006, but a defect in the taxi's steering system recently forced
it into a recall -- a damaging move which contributed to the
company's woes.

The report notes that the company had been in talks about a cash
injection with Chinese company Geeley, which already owns a 20%

The Washington Post Business says that Manganese said in a
statement that a "speedy resolution" of the product recall
remained a top priority for the group, which would continue to
operate throughout the administration process.

Manganese Bronze is the maker of London's famous black cabs.

NATIONWIDE BUILDING: Fitch Affirms 'BB+' Preferred Shares Rating
Fitch Ratings has affirmed Nationwide Building Society's
(Nationwide) Long-term Issuer Default Rating (IDR) at 'A+' with a
Negative Outlook and Viability Rating (VR) at 'a+'.  Fitch has
also affirmed Santander UK plc's (San UK) Long-term IDR at 'A'
with a Stable Outlook, and VR at 'a'.

The affirmations reflect both entities' strong franchise in the
UK mortgage and savings markets, the low risk profile of their
large and well performing mortgage portfolios, their stable
deposit bases and their strong liquidity reserves.  Profitability
in the UK banking and building society sector remains weak,
mostly because of revenue pressures in a low interest rate
environment combined with a weak demand for credit.

These pressures are expected to ease somewhat following the
introduction of the UK government's Funding for Lending Scheme
(FLS), which Fitch expects to result in the release of some
excess liquidity reserves as well as a reduction in overall
funding costs, and hence easing margin pressure.  However, it is
too early to know the extent of these benefits for each
individual institution, as it will be partly dependent on their
flexibility in replenishing their historical loan books at new
rates and partly on the market's reaction to the pricing of these

Both entities' ratings take into account their lack of geographic
and business diversification.


Nationwide's Long-term IDR is driven by its VR, which primarily
reflects the low risk profile of its business.  The VR also
factors in Nationwide's weak profitability in conjunction with
the current lack of high quality loss absorbing capital that
could be raised in times of stress by UK mutual organizations.
Although Fitch understands that substantial progress has been
made in designing such an instrument, the amount that could be
made available to Nationwide will be subject to market conditions
and investor appetite, both of which remain untested.

Nationwide is diversifying its earnings and increasing non-
interest income, and Fitch expects pressure on profitability to
ease somewhat, also as a result of declining margin pressure
following the introduction of the FLS.  In addition, Fitch
expects loan impairment charges to remain moderate given the
relatively low-risk nature of Nationwide's residential mortgage

However, Fitch views the 'a+' VR as being under pressure from
capital constraints, which may reduce the society's operating
flexibility and ability to compete in the expansion of the loan
book at the higher rates prevailing in the market.  The Negative
Outlook on Nationwide's Long-term IDR continues to reflect the
possibility that the VR, and therefore also the Long-term IDR,
could be downgraded if the building society does not manage to
improve operating profitability, or if macro-economic conditions
derail the wind down of its commercial property finance book (8%
of total loans, but loss-making), both of which may result in
further pressure on capital.

Fitch expects to review the Negative Outlook by end-2013 and
currently expects that if the IDR is downgraded, it would likely
be restricted to one notch.  The Outlook could be revised to
Stable if Nationwide's operating profitability improved
moderately, while at the same time capitalization and asset
quality remained sound.

Nationwide's Support Floor and Support Rating Floor (SRF) reflect
the society's systemic importance to the UK, which in Fitch's
view, still implies an extremely strong probability of support
from the UK authorities if needed.  Although on a weakening
trend, Fitch expects the UK authorities' propensity to support
Nationwide to remain high until UK and EU regulatory and
legislative measures designed to improve stability in the
financial system are phased in and until measures designed to
weaken the implicit support for banks/building societies, also
both UK-specific and at an EU level, can be practically
implemented.  These ratings are sensitive to a change in Fitch's
assumptions around the ability or propensity of the UK government
to provide extraordinary support to Nationwide, if needed.


San UK's VR reflects the bank's profitability, which has remained
relatively resilient so far, but the protracted low interest rate
environment is expected to impinge more strongly on profitability
as its macro hedge, taken out in 2009, gradually expires.  The
bank is looking to improve returns by expanding its SME business
as well as by seeking to improve cross selling, particularly
through wider usage of current accounts and credit cards.

The VR is also based on the bank's sound asset quality, which
reflects the high proportion of lending secured by prime
residential mortgages. The bank's VR could be downgraded if
macro-economic conditions result in a greater than anticipated
deterioration in asset quality.

Liquidity and capital are both strong, although excess liquidity
is expected to be gradually wound down as a result of the FLS and
other regulatory measures being implemented by the UK government
to stimulate lending.  The core Tier 1 capital ratio (12.2% at
end-June 2012) is likely to be managed down to around 10% in the
medium term. This will occur with a gradual expansion of the
business and, possibly, by some form of capital repatriation to
its 100% shareholder, Banco Santander S.A.
'BBB+'/'Negative'/'bbb+').  This follows the announcement in
October 2012 that the deal to acquire RBS branches will not
complete. Banco Santander originally injected the capital into
its UK subsidiary, in mid-2010, in preparation for the

The announcement that San UK will not extend the deadline for
completion of the deal (and hence the strong likelihood that it
will no longer take place) is viewed by Fitch as ratings neutral
for San UK as the lack of competitive edge resulting from an
expanded franchise is balanced by higher capital for the short to
medium term.  However, Fitch expects this excess capital to be
gradually managed down.

San UK's VR is constrained under Fitch's rating criteria by the
rating of its parent, Banco Santander, which currently has a
Negative Outlook.  San UK's net exposure to the Santander group
is not material and is collateralized, and its funding and
capital positions are to a large degree ring-fenced from the rest
of the group due to strong regulatory oversight by the UK FSA.

Nonetheless, in Fitch's opinion, the business flow and reputation
of the UK group and the Spanish parent are somewhat
interdependent and correlated.  For this reason, Fitch is likely
to maintain a maximum of two notches between the VR of San UK and
the IDR of Banco Santander San UK's Long-term IDR is at its SRF,
and this is reflected in the Stable Outlook on the bank's Long-
term IDR.  The SRF is based on the bank's systemic importance to
the UK.  As the SRF and VR of San UK are at the same level, a
downgrade in its IDR would only take place if the VR is
downgraded and, at the same time, Fitch believes that the
propensity of the UK government to support San UK has reduced.
The IDRs do not factor in any support from its parent.

San UK's Support Rating and SRF are sensitive to a change in
Fitch's assumptions around the ability or propensity of the UK
government to provide extraordinary support to the bank, if


Abbey National Treasury Services is the main debt issuing vehicle
and wholesale counterparty entity of San UK.  Its IDRs are
aligned with those of San UK because it is effectively an arm of
the parent bank and its obligations that have been or will be
incurred before 30 June 2015 are guaranteed by San UK.  Fitch
believes it cannot be meaningfully analysed on a standalone basis
(it has no VR) and its IDRs are sensitive to the same
considerations that could affect San UK.


Subordinated debt and other hybrid capital issued by Nationwide,
San UK and ANTS are notched down from the VRs of Nationwide and
San UK, respectively, in accordance with Fitch's assessment of
each instrument's respective non-performance and relative loss
severity risk profiles, which vary considerably.  Their ratings
are primarily sensitive to any change in Nationwide and San UK's

The rating actions have no impact on Nationwide's and San UK's
covered bonds' ratings.

The ratings actions are as follows:


  -- Long-term IDR: affirmed at 'A+'; Negative Outlook
  -- Short-term IDR: affirmed at 'F1'
  -- VR: affirmed at 'a+'
  -- Support Rating: affirmed at '1'
  -- SRF: affirmed at 'A'
  -- Senior unsecured long-term debt, including programme ratings
     and member deposits: affirmed at 'A+'
  -- Commercial paper and short-term debt, including programme
     ratings: affirmed at 'F1'
  -- Lower Tier 2: affirmed at 'A'
  -- Permanent interest bearing securities: affirmed at 'BBB'

San UK:

  -- Long-term IDR: affirmed at 'A'; Outlook Stable
  -- Short-term IDR: affirmed at 'F1'
  -- VR: affirmed at 'a'
  -- Support Rating: affirmed at '1'
  -- SRF: affirmed at 'A'
  -- Senior unsecured debt long-term rating, including programme
     rating: affirmed at 'A'
  -- Senior unsecured debt short-term rating, including programme
     rating and commercial paper: affirmed at 'F1'
  -- Market-linked senior unsecured securities: affirmed at
  -- Subordinated debt: affirmed at 'A-'
  -- Upper Tier 2 subordinated debt: affirmed at 'BBB'
  -- GBP300m Non-cumulative, callable preference shares,
     XS05021054: affirmed at 'BB+'
  -- Other Preferred stock: affirmed at 'BBB-'

Abbey National Treasury Services plc

  -- Long-term IDR: affirmed at 'A'; Stable Outlook
  -- Short-term IDR: affirmed at 'F1'
  -- Senior unsecured debt long-term rating, including programme
     ratings: affirmed at 'A'
  -- Market-linked senior unsecured securities: affirmed at
  -- Government guaranteed Debt Programme: affirmed at

Abbey National Capital Trust 1

  -- USD1bn Trust Preferred Securities (ISIN: US002927AA95)
     (guaranteed by San UK): affirmed at 'BBB-'

RANGERS FC: Administrators to Tap BDO as Oldco Rangers Liquidator
----------------------------------------------------------------- reports that Oldco Rangers moved a
significant step closer to its inevitable liquidation on Monday
when creditors approved the end of the administration process,
according to Duff & Phelps.

The administrators have instructed lawyers to make a formal
application to place the company into liquidation in the Court of
Session, says.

The report notes the club was consigned to liquidation in June
when Her Majesty's Revenue and Customs, who are owed up to
GBP94 million, rejected an offer to creditors.

That prompted Charles Green's Sevco Scotland firm to buy the
club's assets and business for GBP5.5 million and relaunch
Rangers on the pitch while the original company, which was
renamed "RFC 2012", headed for liquidation. reports that Paul Clark, of Duff & Phelps,
said in a statement: "Creditors have today given their approval
for the administrators to bring the administration process to an
end and to place the company into liquidation.

"As a result, we as administrators have instructed our legal team
to prepare the necessary application for lodging in the Court of
Session as a matter of urgency.

"Should the application be approved, then Malcolm Cohen and James
Bernard Stephen of BDO will be appointed liquidators of RFC 2012
plc, and will undertake the process of liquidation of the 'oldco'
company and the continued recovery of funds for creditors.

"This will not affect the current operations of The Rangers
Football Club in any way as it is a completely separate entity."

                      About Rangers Football Club

Rangers Football Club PLC --
-- is a United Kingdom-based company engaged in the operation of
a professional football club.  The Company has launched its own
Internet television station,  The station combines
the use of Internet television programming alongside traditional
Web-based services.  Services offered include the streaming of
home matches and on-demand streaming of domestic and European
games, which include dedicated pre-match, half-time and post-
match commentary.  The Company will produce dedicated news
magazine and feature programs, while the fans can also access a
library of classic European, Old Firm and Scottish Premier League
(SPL) action.  Its own dedicated television studio at Ibrox
provides onsite production, editing and encoding facilities to
produce content for distribution on all media platforms.

UK COAL: Warns of Liquidation if Restructuring Deal Fails
Insider Media reports that UK Coal has warned it faces
liquidation as early as the first quarter of 2013 if its
restructuring proposals are not accepted by stakeholders.  As
part of the restructure, the company intends to change its name
to Coalfield Resources.

Insider Media relates that to help implement the restructure, UK
Coal also hopes to change its stock exchange listing from premium
to standard.

In a circular to shareholders, Insider Media relates, the
Doncaster business explained the change of listing would provide
greater flexibility to implement its restructure while the change
of name was intended to reflect its proposed change of emphasis.

According to the report, UK Coal said in its interim results that
the company has reached a deal with its pension trustees, and an
agreement in principle with generators, which would result in a
combined GBP80 million of support to UK Coal over the period to
the end of 2015, once the proposed restructuring is implemented.

Insider Media notes the terms of the restructuring mean the
company's shareholders' principal economic interest will be a
24.9% stake in the long term development potential of its
property division's assets.

UK Coal warned that if the restructuring is not implemented by
Dec. 31, 2012, the company could have to appoint receivers,
liquidators or administrators as early as the first quarter of
2013, says Insider Media.  A general meeting has been convened on
November 5.

UK Coal plc -- is a United Kingdom-
based company engaged in surface and underground coal mining,
property regeneration and management, and power generation.  The
Company operates four deep mines, located in Central and Northern
England.  Its deep mines business consists of Daw Mill
(Warwickshire), Kellingley (Yorkshire) and Thoresby and Welbeck
(Nottinghamshire).  The Company had five active surface mines.
Total surface mining reserves and resources are estimated at
approximately 55 million tons.  The Company owns approximately
45,000 acres (18,200 hectares) of predominantly agricultural
land.  During the year ended December 31, 2008, it acquired 50%
of UK Strategic Partnership Limited as a joint venture company
with Strategic Sites Limited for the development of certain
investment properties.  In January 2009, it sold 50% share in
Coal4Energy Limited to Hargreaves Services PLC.


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

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

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

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


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

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

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

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

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

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

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