TCREUR_Public/121217.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

           Monday, December 17, 2012, Vol. 13, No. 250



KARNTNER BEZIRKSJOURNALE: Austrian Newspaper Files for Bankruptcy


DEXIA SA: Sells Asset Management Arm to GCS Capital


RENAULT SA: Volvo Stake Sale No Impact on Fitch's 'BB' Rating


PHOTON EUROPE: PV Publisher Enters Insolvency Process
TITAN EUROPE 2006-2: Fitch Affirms 'CC' Ratings on 5 Note Classes


E-STAR ALTERNATIVE: Court Initiates Bankruptcy Proceedings


BANKAS SNORAS: Ex-Central Bank Head Allegedly Involved in Demise


TEKSTIL INVEST: Asset Auction Scheduled for December 27


CADOGAN SQUARE: S&P Raises Rating on Class D Notes From 'BB+'
CAIRN CLO II: S&P Raises Rating on Class E Notes to 'CCC+'


CAIXZ ECONOMICA: Fitch Affirms 'BB' Long-Term IDR; Outlook Neg.


ROMSTRADE: Enters Into Insolvency


OTP BANK: Moody's Reviews 'Ba2' Deposit Ratings for Downgrade
RUSSIAN INSURANCE: Fitch Affirms 'B' IFS Rating; Outlook Stable
SEVERSTAL COLUMBUS: S&P Affirms 'B' Corp. Credit Rating
* ASTRAKHAN REGION: Fitch Affirms 'B+' Long-Term Currency Ratings
* LENINGRAD OBLAST: S&P Affirms 'BB+' Issuer Credit Ratings

* STAYROPOL REGION: Fitch Assigns 'BB' Long-Term Currency Ratings
* RUSSIA: Moody's Compares "Big Three" Mobile Operators


HRT F1: Is Already In Liquidation, Supplier Says


VESTEL ELEKTRONIK: Fitch Withdraws 'B' Long-Term Currency IDRs

U N I T E D   K I N G D O M

AVINCIS MISSION: Moody's Cuts CFR to 'B2'; Outlook Negative
COMET: HM Revenue & Customs to Face GBP26-Mil. Loss From Collapse
ENTERPRISE INNS: S&P Affirms 'B' Longterm Corp. Credit Rating
GALA CORAL: Fitch Affirms 'B' Long-Term IDR; Outlook Stable
WEAVERING CAPITAL: Founder Face SFO Charges in Collapse Probe


* EUROPE: Moody's Says Credit Quality to Deteriorate in 2013
* EUROPE: Moody's Says Bank Risk Hits Covered Bond Credit Quality
* BOND PRICING: For the Week December 10 to December 14, 2012



KARNTNER BEZIRKSJOURNALE: Austrian Newspaper Files for Bankruptcy
Austrian Times reports that Austrian newspaper the Karntner
Bezirksjournale has filed for bankruptcy at the insolvency court
in Klagenfurt.

The company which is a registered GmbH is owned by BB & Partner
Vermogens- und Liegenschafts-GmbH, which also owns the Karntner
Tageszeitung (KTZ).  The main shareholder is the Upper Carinthian
businessmen Hansjorg Berger.

Austrian Times notes that the closure of the company will not
affect the KTZ.  According to the report, the reason for the
closure was given as a not economically supportable decline in
the advertising income as a result of the economic crisis.

The report relates that despite restructuring that had seen costs
substantially reduced the company said they were caught out by
not having enough time to meet their debts and creditors were no
longer prepared to wait forcing them into insolvency.

It is hoped however that a deal might be agreed that will allow
the company to continue with a settlement of at least part of the
debt among creditors, Austrian Times reports. In order for the
company to go ahead, it would mean that those owed money would
need to agree to accept a reduced payment in exchange for waiving
the right to the rest of what they are owed.

The company has 75 staff and around 80 creditors and it is
expected that some wages may not be paid, according to Austrian

Austrian Times recalls that both the KTZ and the Bezirksjournale
reported problems in summer on meeting their obligations to pay
for the social insurance for staff that threatened them with

Mr. Bilgram has commented on the matter to deny allegations that
there are any delays in payments to staff and saying that all
wages were paid promptly, the report adds.


DEXIA SA: Sells Asset Management Arm to GCS Capital
John O'Donnell at Reuters reports that Dexia SA said on Wednesday
it agreed the sale of its asset management business, a move that
marks the near completion of its dismantling following its
virtual collapse in the wake of the financial crisis.

Dexia said it had signed an agreement to sell Dexia Asset
Management to GCS Capital for EUR380 million (US$496 million) and
that it expected to complete the deal in the first three months
of next year, Reuters relates.

Dexia had expanded to become the world's biggest lender to local
authorities before its access to credit dried up and it had to be
bailed out by France and Belgium, Reuters recounts.

The bank, whose near failure represented one of Europe's biggest
financial crises following the Lehman Brothers collapse, has
already sold various businesses to meet regulatory conditions on
the state aid it has received, Reuters notes.

According to Reuters, stripped of most of its businesses, Dexia
faces a future as a rump holding company of bonds and loans in
"run-off,", or not attracting new business, still underpinned by
state guarantees to support its funding.

Dexia SA is a Belgium-based banking group with activities
principally in Belgium, Luxembourg, France and Turkey in the
fields of retail and commercial banking, public and wholesale
banking, asset management and investor services.  In France,
Dexia Bank focuses on funding public sector bodies and providing
financial services to local government.  In Luxembourg, Dexia
operates in two main areas: commercial banking (for personal and
professional customers) and private banking (for international
investors).  In Turkey, Dexia is involved in retail and
commercial banking and offers services to ordinary account
holders, business and local public sector customers and
institutional clients. The Company operates through its
subsidiaries, such as Dexia Credit Local, DenizBank, Dexia
Credicop, Dexia Sabadell, Dexia Kommunalbank Deutschland, Dexia
Asset Management, among others.


RENAULT SA: Volvo Stake Sale No Impact on Fitch's 'BB' Rating
Fitch Ratings says that the disposal of Renault SA's remaining
6.5% stake in AB Volvo ('BBB'/Stable) has no immediate impact on
its Long-term Issuer Default Rating (IDR) and senior unsecured
notes rating of 'BB+'.  The Outlook on the IDR is Stable.
This EUR1.5 billion sale will enable Renault to report a net cash
position at end-2012, before Fitch's adjustments for operating
leases, and will further bolster the group's liquidity and key
credit metrics, including leverage.  Renault will use the
proceeds of this disposal to reduce financial debt from its
automotive operations and finance investments, capex and R&D,
hence enhancing growth opportunities.

However, underlying profitability from industrial operations
remains somewhat weak for an investment grade rating and may come
under pressure in 2013 if the environment deteriorates further.
Fitch expects new vehicle sales to contract further in Renault's
main European markets in 2013 and the pricing environment to
worsen or at best remain stable.

Nonetheless, Fitch believes that the company has sufficient
headroom in the current ratings to accommodate the agency's
current base assumptions on sales and pricing. n addition,
Renault has demonstrated resilient credit metrics in a difficult
environment for European volume carmakers in 2011 and 2012.  A
positive rating action could be considered in the foreseeable
future if Fitch believes that the company's current resilient
performance will be sustained in 2013.


PHOTON EUROPE: PV Publisher Enters Insolvency Process
Mark Osborne at reports that insolvency proceedings
have been officially initiated in the local court of Aachen,
Germany, against Photon Europe GmbH. discloses that Case No. 92 IN 243/12 was filed on
December 12.  A preliminary insolvency lawyer Andre Seckler -- -- has been appointed by the Aachen
District Court to oversee the insolvency proceedings, the report

According to, Annegret Kreutzmann, Managing Director
of Photon Europe was cited in the court papers as legally
representing the publisher in the insolvency proceedings.

Details were not provided on the type of insolvency being imposed
on the company and whether it could continue operating, the
report says.

Photon Europe GmbH is a publisher of leading PV publications such
as Photon International.

TITAN EUROPE 2006-2: Fitch Affirms 'CC' Ratings on 5 Note Classes
Fitch Ratings has affirmed Titan Europe 2006-2 plc's floating
rate notes due 2016 as follows:

  -- EUR373.5m Class A (XS0254356990) affirmed at 'BBB-sf';
     Outlook Negative
  -- EUR61.7m Class B (XS0254357378) affirmed at 'Bsf'; Outlook
  -- EUR44.1m Class C (XS0254357881) affirmed at 'CCCsf';
     Recovery Estimate (RE) RE20%
     -- EUR23.1m Class D (XS0254357964) affirmed at 'CCCsf'; RE0%
  -- EUR57.5m Class E (XS0254358004) affirmed at 'CCsf'; RE0%
  -- EUR37.4m Class F (XS0254358699) affirmed at 'CCsf'; RE0%
  -- EUR29.3m Class G (XS0254648263) affirmed at 'CCsf'; RE0%
  -- EUR28.2m Class H (XS0254647612) affirmed at 'CCsf'; RE0%
  -- EUR11.5m Class J (XS0254653180) affirmed at 'CCsf'; RE0%

The affirmation reflects falling vacancy rates and rising gross
rents over the past 12 months on the three largest loans
(EUR267.2 million Margaux, EUR208 million Petrus and EUR134.6
million Velvet) as well as the Margaux default at its maturity in
July 2012.  All four remaining loans are secured on German
multifamily housing portfolios.

As certain conditions were not met, the Margaux loan failed to
get an extension at its maturity in July 2012.  The Petrus loan,
cross-defaulted with Margaux, also defaulted in spite of meeting
all covenants and being the best-performing loan in the
transaction.  The current cost ratios on all loans remain above
market standard, in order to improve asset quality and pay off
operating expenses (opex).  However, the Velvet, Margaux and
Petrus Portfolios are still experiencing high rental arrears.
Three loans are subject to default interest, and forthcoming
workout-related expenses may reduce recoveries as all loans are
highly leveraged.

A revaluation of the Velvet collateral in September 2011 resulted
in a reported loan-to-value ratio of 106% (119% including the not
securitized B-note), down from 154% (172% on the whole loan)
previously reported, based on an October 2010 valuation.  At this
time, the special servicer rejected a discounted payoff (DPO)
offer by the borrower who proposed to repurchase the securitized
loan for EUR129.4 million, EUR5.2 million below the valuation.

The current exit strategy is to attempt to sell the portfolio
prior to loan maturity in January 2013, for a price more
reflective of the improved loan performance than the borrower's
offer.  The improvements were predominantly the result of large
investments in capital expenditure (capex) and opex, using equity
and diverting the majority of rental income, while loan interest
payments were accrued but not paid until loan maturity.

In Margaux, approximately 90% of the quarterly rent received in
October 2012 was spent on capex and opex.  At the same time
default interest remained unpaid. The vacancy rate remains high
at 18%, albeit improved from the peak (28%) in January 2009.
Although the reported LTV (102%) would suggest only minor losses,
Fitch believes that a sizable risk premium would be demanded by a
potential buyer, due to capex/opex requirements, rental arrears
and asset location (predominantly in the former East Germany).

The Labrador borrower and special servicer both filed for
insolvency proceedings over the borrower's assets in November
2012.  Both proceedings are expected to be combined to simplify
the process.  However, Fitch expects a prolonged resolution for
this loan, which has been in special servicing since June 2008
(except for a brief period in 2010 when performance temporarily

Unlike its larger peers, Labrador did not experience any
significant rental increases over the last year, with vacancy
actually declining to 21% from 18% over the same period.  Fitch
continues to expect lower recoveries than the reported LTV (91%)
may imply.  All principal received by the issuer, whether from
sales, DPOs or refinancing, will be applied on a sequential basis
as all loans are defaulted.


E-STAR ALTERNATIVE: Court Initiates Bankruptcy Proceedings
MTI-Econews reports that a court has initiated bankruptcy
proceedings beginning on Thursday, Dec. 13, against E-Star

E-Star announced on December 8 that the company had filed for
bankruptcy protection, MTI-Econews recounts.

E-Star is a A-category issuer at the Budapest Stock Exchange,
MTI-Econews notes.

As reported by Troubled Company Reporter-Europe on Dec. 10, 2012,
Bloomberg News related that E-Star said in a statement to
Budapest bourse that it filed for bankruptcy on inability to meet
payment obligations, upon which situation opens the right of
creditors to initiate liquidation proceedings.  The company aims
to reach an agreement with creditors under the bankruptcy
procedures to ensure future operation, Bloomberg disclosed.

E-Star Alternative is a Hungarian energy services company.


BANKAS SNORAS: Ex-Central Bank Head Allegedly Involved in Demise
Bryan Bradley at Bloomberg News reports that the General
Prosecutor's Office said the Lithuanian central bank's former
head of bank supervision is suspected of helping Bankas Snoras AB
hide violations that led to the lender's bankruptcy last year.

According to Bloomberg, the office said on its Web site on Friday
that an investigation of the bank's demise produced evidence to
suspect Kazimieras Ramonas, former head of the Bank of
Lithuania's Credit Institutions Supervision Department, of
covering up deficiencies and legal violations starting in 2009.

Once Lithuania's third biggest bank by deposits, Snoras is suing
its former owners Vladimir Antonov and Raimondas Baranauskas in
London for EUR492 million (US$643 million) on claims they forged
documents and fixed accounts to siphon money out of the bank,
Bloomberg discloses.  Both men deny the claims and are fighting
them, Bloomberg notes.  The Lithuanian government nationalized
Snoras and declared it insolvent on Nov. 16, 2011, Bloomberg

Mr. Ramonas's actions and deliberate failures to act "allowed
Snoras to hide from the Bank of Lithuania the true ownership of
assets it held in foreign banks," Bloomberg quotes the
Prosecutor's Office as saying.  "That is why the threat of Snoras
being insolvent was not recognized in time."

The central bank fired Mr. Ramonas on Nov. 30, 2011, Bloomberg
recounts.  According to Bloomberg, a statement on its Web site
said that the Third District Court of Vilnius City on June 20
rejected Mr. Ramonas claim that the dismissal was unlawful.

                        About Bankas Snoras

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

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

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


TEKSTIL INVEST: Asset Auction Scheduled for December 27
SeeNews reports that Pepi Panev, court-appointed administrator of
bankrupt Tekstil Invest, said asset of the company valued at
EUR219,385 (US$282,860) will be put up for sale later this month.

According to SeeNews, the administrator said in a filing with the
Macedonian economy ministry on Wednesday that production
facilities and machines located in the eastern town of Berovo
will be auctioned off on Dec. 27.

Interested investors should offer a price equal to least 50% of
the estimated value of the company assets, SeeNews notes.

Tekstil Invest is a Macedonian bankrupt textile company.


CADOGAN SQUARE: S&P Raises Rating on Class D Notes From 'BB+'
Standard & Poor's Ratings Services raised its credit ratings on
Cadogan Square CLO IV B.V.'s class A, B-1, B-2, C, and D notes.
"At the same time, we have affirmed our rating on the class E
notes," S&P said.

"The rating actions follow our credit and cash flow analysis, to
assess the transaction's performance since our previous review on
Sept. 8, 2011," S&P said.

                          Current       as of
      Rating   Rating      amount  Sept. 2011
Class     to     from  (mil. EUR)  (mil. EUR)         Interest
A    AA+(sf)  AA-(sf)      322.17      324.91  6mEuribor+0.23%
B-1   A+(sf)   A-(sf)       25.00       25.00  6mEuribor+0.45%
B-2   A+(sf)   A-(sf)       15.00       15.00           4.854%
C     A-(sf)  BBB(sf)       22.50       22.50  6mEuribor+0.65%
D   BBB-(sf)  BB+(sf)       26.25       26.25  6mEuribor+1.55%
E     B+(sf)   B+(sf)       18.75       18.75  6mEuribor+3.55%
M         NR       NR       48.75       48.75  6mEuribor+7.50%

6mEURIBOR - Six-month EURIBOR (Euro Interbank Offered Rate)
NR - Not rated.

Since its previous review, S&P notes that the transaction has
benefited from:

-- An increase in the portfolio weighted-average spread to 4.05%
    from 3.38%; and

-- A reduction in the portfolio's weighted-average maturity to
    4.38 from 4.78 years.

The credit quality of the performing portfolio has remained
stable, with a weighted-average rating of 'B'.

"We subjected the notes to various cash flow scenarios
incorporating different default patterns and interest rate
curves, to determine each tranche's break-even default rate at
each rating level. In our analysis, we gave credit to an
aggregate collateral balance of EUR462.22 million, the
portfolio's weighted-average spread, and weighted-average
recovery rates for each rating scenario calculated in accordance
with our criteria," S&P said.

"JP Morgan Chase Bank N.A. (A+/Negative/A-1) and Credit Suisse
International (A+/Negative/A-1) currently provide currency
hedging on 4% of the aggregate collateral balance. In our
opinion, the downgrade provisions in these counterparty
agreements do not fully comply with our 2012 counterparty
criteria. However, we consider that the transaction's exposure to
the counterparties is sufficiently limited that their failure to
perform would not materially affect our analysis," S&P said.

"As a result of these developments, and following our credit and
cash flow analysis, we have raised our ratings on the class A, B-
1, B-2, C, and D notes," S&P said.

"Our rating on the class E notes remains constrained by the
application of the largest obligor default test, a supplemental
stress test we introduced as part of our 2009 criteria update for
corporate collateralized debt obligations (CDOs). We have
therefore affirmed our 'B+ (sf)' rating on the class E notes,"
S&P said.

Cadogan Square CLO IV is a cash flow CDO transaction backed by
loans to speculative-grade corporate firms, which closed in May
2007 and is managed by Credit Suisse Asset Management Ltd.


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

Cadogan Square CLO IV B.V.
EUR507 Million Secured Floating-Rate Notes

Ratings Raised

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

Rating Affirmed

E           B+ (sf)

CAIRN CLO II: S&P Raises Rating on Class E Notes to 'CCC+'
Standard & Poor's Ratings Services raised its credit ratings on
Cairn CLO II B.V.'s class A-2, B, C, D, and E notes. "At the same
time, we have affirmed our ratings on the class A-1E, A-1S, and
A-1R notes," S&P said.

"The rating actions follow our assessment of the transaction's
performance using data from the latest available trustee report,
dated Oct. 2, 2012," S&P said.

"We subjected the capital structure to a cash flow analysis to
determine the break-even default rate for each rated class of
notes at each rating level. In our analysis, we used the reported
portfolio balance that we consider to be performing
(EUR371,125,851), the current weighted-average spread, and the
weighted-average recovery rates that we considered appropriate.
We incorporated various cash flow stress scenarios using
alternative default patterns, in conjunction with different
interest and currency stress scenarios," S&P said.

"From our analysis, we have observed that the asset-liability
mismatch for non-euro-denominated assets has decreased and the
diversification of the portfolio has improved. We have also
observed that overcollateralization test results, the credit
quality of the pool, and credit enhancement have remained stable
since our previous review on Sept. 5, 2011. In addition, we have
noted an increase in the weighted-average spread to 377 basis
points (bps) from 302 bps over the same period," S&P said.

"From our analysis, we have observed that the non-euro-
denominated assets currently make up 23.34% of the total
performing assets. This transaction features multicurrency
revolving liabilities intended to match the non-euro-denominated
assets and multicurrency revolving loans purchased by the issuer.
Currency mismatches are hedged with Bermuda-style currency call
options," S&P said.

"In our opinion, the credit enhancement available to the class A-
1E, A-1S, and A-1R notes is commensurate with the currently
assigned ratings, taking into account the results of our credit
and cash flow analysis and the application of our 2012
counterparty criteria. We have therefore affirmed our ratings on
the class A-1E, A-1S, and A-1R notes," S&P said.

"Our credit and cash flow analysis of the class A-2, B, C, D, and
E notes indicated that the level of credit enhancement is
commensurate with higher ratings than previously assigned. We
have therefore raised our ratings on these classes of notes," S&P

"Our rating on the class E notes is constrained by the
application of the largest obligor default test, a supplemental
stress test that we introduced in our 2009 criteria for corporate
collateralized debt obligations (CDOs)," S&P said.

Cairn CLO II is a cash flow collateralized loan obligation (CLO)
transaction that securitizes loans to primarily European
speculative-grade corporate firms. The transaction closed in
August 2007 and is managed by Cairn Capital Ltd.


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

Cairn CLO II B.V.
EUR380.000 Million and GBP13.473 Million Secured Floating-Rate

Ratings Raised

A-2         AA- (sf)       A+ (sf)
B           A+ (sf)        BBB+ (sf)
C           BBB+ (sf)      BB+ (sf)
D           BB+ (sf)       B+ (sf)
E           CCC+ (sf)      CCC- (sf)

Ratings Affirmed

A-1E        AA+ (sf)
A-1S        AA+ (sf)
A-1R        AA+ (sf)


CAIXZ ECONOMICA: Fitch Affirms 'BB' Long-Term IDR; Outlook Neg.
Fitch Ratings has affirmed Caixa Economica Montepio Geral's
(Montepio) Long-term Issuer Default Rating (IDR) at 'BB', Short-
term IDR at 'B', Support Rating (SR) at '3', Support Rating Floor
(SRF) at 'BB' and Viability Rating (VR) at 'b'.  The Outlook on
the Long-term IDR is Negative.


Montepio's Long-term IDR is driven by support, should it be
required, from the Portuguese state.  Montepio has not required
aid from the state but Portugal has been supportive of its banks,
injecting capital as required from the EUR12 billion capital
backstop facility available under the IMF/EU support program.
Montepio's Long-term IDR is at its SRF of 'BB', one notch below
the sovereign rating ('BB+'/Negative).

Montepio is a second-tier Portuguese bank controlling a deposit
market share of around 7%.  The SRF reflects Fitch's assessment
of available sovereign and international support to Portuguese
banks from the IMF/EU support framework.

The Negative Outlook on Montepio's Long-term IDR mirrors that on
the sovereign, given the high connection between bank and
sovereign ratings in Portugal.  Montepio's Long-term IDR and SRF
are therefore sensitive to a downgrade of Portugal's sovereign


Montepio's VR reflects mainly its weak credit risk profile and
its vulnerability to sovereign risks as well as the weak economic
and housing sectors given its high property sector exposures.  It
also reflects the improved retail funding profile and capital

Montepio's loan book at end-H112 is split 48% retail mortgages,
39% SME and middle market lending and 13% consumer and other
loans.  In particular, asset quality within the SME portfolio is
fairly weak and exposure to the real estate development and
construction sectors is high, at 21% of total loans at end-H112.
While Portugal has not suffered from a house price bubble like
some other peripheral European countries, Montepio remains
vulnerable to a downturn in real estate prices given the split of
its loan book.

Around 12% of the retail mortgage book comprises loans with high
loan-to-value ratios, which Fitch views as higher risk. Asset
quality in the unsecured consumer loan book is also expected to
come under pressure given rising unemployment.  The 'credit at
risk' ratio, which Fitch believes provides a more internationally
comparable indication of asset quality, was 8.8% at end-H112 (8%
at end-2011).

Positively, Montepio's core capital ratios are robust and mostly
backed by regular capital injections received from the bank's
sole shareholder, the Associacao Mutualista (MGAM).  The Fitch
core capital (FCC)/weighted risks ratio reached 10% at end-H112
and the bank has not needed an injection of state capital to
date.  Fitch views this positively but notes that Montepio's
capitalization remains highly vulnerable to the performance of
its SME and real-estate related risk portfolios, which under a
stress scenario could result in significant capital needs.  The
bank's capitalization is also vulnerable to negative valuation
movements from its sovereign debt exposures (89.5% of FCC at end-
H112).  Unlike some of its peers, Montepio has not been required
to hold a capital buffer to absorb write-downs on sovereign debt.
This is because it did not participate in the stress test
conducted by the European Banking Authority.

The VR also reflects Montepio's reliance on ECB funding
(equivalent to a high 9% of assets at end-H112) but, on a
positive note, the bank's retail funding base has improved and
its net loans/deposits ratio of 118% as per Bank of Portugal
guidelines at end-H112, compares favorably with domestic peers'.
Loan deleveraging was modest in 2012 and Fitch expects this to
continue at the same pace in 2013.  Debt maturities are
manageable to end-2015 and the bank has a good pool of
unencumbered assets which can be used to obtain additional
funding from the ECB if required.

Montepio's VR remains sensitive to further deterioration in its
loan book, particularly considering sector risk concentration in
real estate and construction.  These sectors are vulnerable to
the deteriorating Portuguese housing market and economy.
Profitability is weakening and further pressure is likely
considering the difficult economic prospects for Portugal.

Upward pressure on Montepio's VR might be possible if the bank
generates sufficient operating profit to absorb expected asset
quality deterioration while protecting current capital levels
without recourse to state support.  If the bank realizes expected
synergies from the recent acquisition of Finibanco and further
improves its funding profile, this could also be positive for the

MGAM is a mutual association dependent on subscriptions from its
members (517,375 at end-H112) and dividends from its other
subsidiaries (i.e. insurance, pension and mutual fund management
companies).  Fitch believes that MGAM will continue to
recapitalize Montepio if needed.  However, its capacity to inject
capital will also depend on the evolution of Montepio's credit
risk profile in the context of Portugal's economic recession.


The bank's subordinated debt has been affirmed at 'B-', one notch
below the bank's VR, in accordance with Fitch's notching criteria
on Assessing and Rating Bank Subordinated and Hybrid Securities'
(dated 5 December 2012) to reflect the higher loss severity.  The
ratings of subordinated debt are sensitive to a change in
Montepio's VR.

The rating actions are as follows:

Montepio Geral:

  -- Long-term IDR affirmed at 'BB', Outlook Negative
  -- Short-term IDR affirmed at 'B'
  -- Viability Rating affirmed at 'b'
  -- Support Rating affirmed at '3'
  -- Support Rating Floor affirmed at 'BB'
  -- Senior unsecured debt long-term rating affirmed at 'BB'
  -- Senior unsecured debt short-term rating affirmed at 'B'
  -- Subordinated debt affirmed at 'B-'


ROMSTRADE: Enters Into Insolvency
--------------------------------- reports that Romstrade, a self-proclaimed
"Romanian constructor of European roads" controlled by
businessman Nelu Iordache, also known as the Asphalt King, has
just entered insolvency, according to a decision of the Giurgiu

According to the report, the decision came following a petition
filed by Agriindustrial Construct. Insolvency firm Casa de
Insolventha Transilvania (CITR) has been appointed as
Rombstrade's provisional judicial administrator with immediate
effect, the report relays. relates that the court has also set a
timetable for creditors, which includes a deadline for the
submission of applications for the acknowledgement of receivables
on Jan. 25, 2013 and a deadline for the communication of the
preliminary list of creditors for February 15 next year.

Romstrade's creditors are to hold their first meeting on Feb. 21,
2013, the report discloses. reports that the court has also issued a
decision to put Romstrade Logistic Express (formerly Direct Aero
Services), an aerial taxi company, into insolvency and placed it
under the provisional judicial administration of the same firm
CITR.  This time, it was DHL International Romania that filed the
petition opening the way for the insolvency ruling.


OTP BANK: Moody's Reviews 'Ba2' Deposit Ratings for Downgrade
Moody's Investors Service has placed on review for downgrade the
deposit ratings of DSK Bank PLC in Bulgaria and OTP Bank (Russia)

The action follows Moody's review for downgrade of the banks'
Hungarian parent bank, OTP Bank NyRt.

Moody's also notes that the ratings of OTP Bank (Ukraine), OTP
Bank NyRt's Ukrainian subsidiary, are unaffected.

Ratings Rationale

The review for downgrade of DSK Bulgaria and OTP Bank (Russia) is
driven by the review for downgrade of OTP Bank NyRt and will
focus on the extent to which the financial challenges faced by
OTP Bank NyRt may impact the group's ability to provide support
to its subsidiaries in case of need.

-- DSK Bank

The review of DSK's deposit ratings is prompted by the
corresponding review for downgrade on all the ratings of OTP Bank
NyRt (Hungary), DSK's parent. DSK's Baa3/Prime-3 deposit ratings
currently incorporate two notches of rating uplift from the
bank's ba2 standalone credit assessment. This external support
uplift incorporates (1) one notch of uplift due to the high
probability of parental support; and (2) one notch of uplift from
the high probability of systemic support from Bulgarian
authorities. Moody's assessment of a high probability of parental
support is based on DSK's significant operational integration
with its parent and the strong strategic fit of DSK with OTP Bank
NyRt, as Bulgaria is one of the three strategic foreign markets
for the group. During the review, Moody's will assess the
parent's capacity to provide support to its Bulgarian subsidiary.

-- OTP Bank (Russia)

The review for downgrade of OTP Bank's (Russia) long-term deposit
ratings follows the review for downgrade on all the ratings of
OTP Bank NyRt, OTP Bank's (Russia) parent. OTP Bank's (Russia)
Ba2 long-term deposit ratings incorporate one-notch uplift from
its ba3 standalone credit assessment, reflecting Moody's view of
a high probability of parental support from OTP Bank NyRt
(Hungary). Moody's assessment of a high probability of parental
support is based on (1) OTP Bank's (Russia) significant
operational integration with its parent; (2) the strong strategic
fit of OTP Bank (Russia) with OTP Bank Group, as Russia is one of
three strategic foreign markets for the group; and (3) the
parent's demonstrated willingness to provide ongoing capital and
liquidity support. During the review, Moody's will assess the
parent's capacity to provide support to its Russian subsidiary.

-- OTP Bank (Ukraine)

The B2 local-currency and Caa1 foreign-currency deposit ratings
of OTP Bank (Ukraine), OTP's Ukrainian subsidiary, are
unaffected, as these ratings (i) are constrained by Ukraine's
country ceilings for these ratings and (ii) a potential downgrade
of OTP Bank NyRt will not affect them.


-- DSK Bank

At this stage, upwards pressure on the ratings is limited, as
indicated by the review of DSK's deposit ratings and the negative
outlook on its D standalone BFSR. Downwards pressure on DSK's
deposit ratings could develop following a weakening of parental
capacity to provide support, as indicated by a downgrade of the
parent's ratings. Additional pressure would result from a
deterioration of DSK's standalone credit strength, and
specifically from a material deterioration in the bank's asset-
quality metrics that would adversely affect its earnings and
capitalization buffers.

-- OTP Bank (Russia)

At this stage, upwards pressure on the ratings is limited, as
indicated by the review for downgrade. Downwards pressure on OTP
Bank's (Russia) deposit ratings could stem from: (1) a weakening
of parental capacity to provide support, as indicated by a
downgrade of the parent's ratings; and/or (2) weakening of the
bank's strategic fit within the OTP Banking Group.


DSK Bank

- Long-term local and foreign-currency deposit ratings of Baa3,
   placed on review for downgrade, from negative outlook

- Short-term local and foreign-currency deposit ratings of
   Prime-3, placed on review for downgrade

- Standalone bank financial strength rating (BFSR) of D
   (equivalent to a standalone credit assessment of ba2), remains
   unchanged with a negative outlook

OTP Bank (Russia)

- Long-term local and foreign-currency deposit ratings of Ba2,
   placed on review for downgrade, from a stable outlook

- Short-term local and foreign-currency deposit ratings of Not-
   prime, remain unchanged

- Standalone BFSR of D- (equivalent to a standalone credit
   assessment of ba3), remains unchanged with a stable outlook


The principal methodology used in these ratings was Moody's
Consolidated Global Bank Rating Methodology published in June

Headquartered in Sofia, Bulgaria, DSK Bank reported total
consolidated assets of BGN8.56 billion (EUR4.4 billion), as of
end December 2011, according to the bank's audited 2011 financial

Headquartered in Moscow, OTP Bank (Russia) reported total
consolidated assets of RUB117 billion (EUR2.8 billion), as of end
December 2011, according to the bank's audited 2011 financial

RUSSIAN INSURANCE: Fitch Affirms 'B' IFS Rating; Outlook Stable
Fitch Ratings has affirmed Russian Insurance Centre (Russia)'s
(RIC) Insurer Financial Strength (IFS) rating at 'B' and National
IFS rating at 'BBB-(rus)'.  The Outlooks are Stable.

The affirmation reflects RIC's relatively strong operating
profile as a specialized commercial property and casualty
underwriter with expertise in insuring Russian defense, space and
related civil enterprises.  Offsetting this, RIC's investment
portfolio contains a relatively large proportion of illiquid and
unrated investments, in particular with reference to non-bank
promissory notes.

The Stable Outlooks reflect the agency's expectation that RIC
will not significantly change its investment strategy towards a
more cautious approach.

Fitch continues to view RIC's investment strategy as non-
conservative as the insurer has a track record of investments in
illiquid assets and equities.  Among the assets of low liquidity
are corporate promissory notes and recent investment in land.
The exact exposure of RIC's capital to low liquid assets is
difficult to determine due to the absence of established markets
for these assets and significant volatility of balance items
between reporting dates.  The investments in shares increased to
84% of the total equity at end-9M12 (end-2011: 65%).

RIC recorded positive operating profitability in 2011 and 9M12,
and this came against Fitch's expectations.  Key drivers for this
improvement were good underwriting results with the combined
ratio improving to 70.2% in 9M12 (9M11: 102%) and to, a lesser
extent, enhanced investment yield.

However, these improvements were driven by claims reserve
revaluations of significant amounts.  Net of this effect the loss
ratio continued to show adverse development in 9M12, therefore
RIC's underwriting result might be under pressure in 2012.
However, Fitch, does not expect this to damage RIC's capital

The underwriting result also improved due to positive loss
reserves development, which showed favorable dynamics towards the
year end and further in 9M12.  This was triggered by positive
incurred but not reported (IBNR) reserve revaluations for the
inward reinsurance line in Q411 and positive revaluations for the
commercial property line in 9M12.

The claims activity trend was negative in 2011 with only a slight
improvement in Q411, and continued to develop adversely in 9M12,
especially in cargo and commercial property lines.  Fitch is
concerned with this deterioration and considers the loss reserve
revaluations, which offset the claims development, to be
methodological and temporary in nature.

According to Fitch's assessment, RIC's risk-adjusted capital
position remained strong and supportive of the ratings level at
end-9M12, but pressured by certain risky asset classes on the
balance sheet.  The statutory solvency margin ratio was 244% at
end-H112, which Fitch also regards as strong.

RIC continues to hold a strong position in the niche of property
and casualty insurance for Russian defense, space and related
civil enterprises.  This sector's size is not expected to
decrease as the volume of government spending on related
industries will not fall, according to the government budget.

Key rating triggers for an upgrade include the following:

  -- A structural reduction of the amount of illiquid assets held
     by RIC;
  -- A decrease of RIC's exposure to shares;
  -- Indications that the shareholders are willing and able to
     support RIC should the need arise;
  -- A larger scale of the business.

Conversely, the ratings could be downgraded if RIC's statutory
solvency margin fell below the regulatory minimum of 130%, and
this was combined with the inability or unwillingness of RIC's
shareholders to support the company.

RIC had gross assets of RUB4.7 billion at end-9M12 and gross
premiums written of RUB2.4 billion in 9M12.

SEVERSTAL COLUMBUS: S&P Affirms 'B' Corp. Credit Rating
Standard & Poor's Ratings Services revised its outlook on U.S.-
based steelmaker Severstal Columbus LLC to stable from positive.
The 'B' long-term corporate credit rating was affirmed.

"The outlook revision follows the company's weaker performance in
the third quarter of 2012 than the previous quarter, amid
unfavorable industry conditions. This has led us to conclude that
its free operating cash flow (FOCF) will remain negative in 2012,
preventing debt reduction. We therefore forecast leverage to
remain very high, with the adjusted debt to EBITDA ratio at about
10x and EBITDA to interest at about 1x," S&P said.

"Russian steelmaker OAO Severstal indirectly owns 100% of
Severstal Columbus. The rating affirmation reflects our
anticipation of continued support for Severstal Columbus from OAO
Severstal. We also expect Severstal Columbus to show an
improvement of its EBITDA generation and metrics once steel
demand in the U.S. recovers, although this may take longer than
we previously anticipated. The affirmation also reflects the
company's limited debt maturities over the next several years,"
S&P said.

"The rating continues to be based on the company's stand-alone
credit profile (SACP) of 'b-', with one notch of uplift to
reflect parental support. Severstal Columbus' SACP reflects our
view of the company's 'weak' business risk profile and 'highly
leveraged' financial risk profile," S&P said.

"We believe that Severstal Columbus is strategically important to
OAO Severstal. The parent has financed Severstal Columbus'
construction and expansion with subordinated debt and equity.
Still, Severstal Columbus is a relatively small subsidiary, with
limited operational links to other parts of the Severstal group.
Moreover, earlier in 2011, OAO Severstal divested its loss-making
operations in North America and Europe without providing support
to repay those subsidiaries' debt," S&P said.

"Severstal Columbus' business risk profile is constrained by its
position as a small, single-site steel producer with a short
track record of profitable operations, which is exposed to
currently weak steel markets. This is only partly offset by the
company's modern operations and recently finalized second phase
of a plant expansion that has doubled crude steel capacity to 3.4
million tons (corresponding to 3.1 million metric tons). The
company also maintained relatively high capacity utilization of
about 80% for the first nine months of 2012. Severstal Columbus'
financial risk profile is constrained by its very high debt and
currently weak performance. As of Sept. 30, 2012, Severstal
Columbus' adjusted debt, including loans from its parent, totaled
US$1.1 billion, translating into an adjusted debt-to-EBITDA ratio
of about 19x for the 12 months ended Sept. 30, 2012," S&P said.

"The company posted very weak results in the third quarter of
2012, when it suffered from a lower spread between the prices of
steel and scrap metal. We therefore anticipate that despite the
increase in production this year to about 2.7 million tons, from
2.0 million tons in 2011, EBITDA will remain well below the 2011
levels. We nevertheless factor in the company's improved
performance starting from the fourth quarter of 2012 as scrap
prices decreased. Continued growth in the U.S. economy should in
our view support steel demand and further increases in EBITDA in
2013-3014," S&P said.

"We expect FOCF to turn neutral in 2013-2014 as a result of
recovering profitability and much lower capital expenditures. We
understand that because the company has completed its investment
program, maintenance capital expenditures will be only about $20
million-$30 million. Still, we believe that deleveraging will be
only gradual, with the debt-to-EBITDA ratio at about 10x in
2013," S&P said.

"The stable outlook reflects our anticipation that Severstal
Columbus will not generate substantial negative FOCF in 2013-
2014. This is based on our assumption of improved operating
performance and limited capital expenditures," S&P said.

"Rating upside may appear if the company were to demonstrate
better operating performance and strong cash flow generation,
supported by healthier demand that enables it to start
deleveraging," S&P said.

"We could lower the rating if the company's performance remained
very weak and FOCF materially negative, and if liquidity were to
deteriorate. We could also downgrade the company if the parent's
strategy with regard to supporting Severstal Columbus were to
change, for instance reflected in plans for divestment," S&P

* ASTRAKHAN REGION: Fitch Affirms 'B+' Long-Term Currency Ratings
Fitch Ratings has affirmed Russian Astrakhan Region's Long-term
foreign and local currency ratings at 'B+', Short-term foreign
currency at 'B' and National Long-term rating at 'A(rus)'.  The
Outlooks on the Long-term ratings are Stable.

The ratings reflect high direct risk dominated by short-term bank
loans, which impose significant refinancing pressure, and a high
concentration of the region's tax base.  However, the ratings
also factor in stabilizing direct risk, improved operating
performance and growing local economy.

Fitch notes that maintenance of sound budgetary performance and
reduction of refinancing risk from a lengthening of the debt
maturity profile would lead to an upgrade.  Conversely, weak
operating performance with close to zero margins and further
growth of short-term debt would lead to downward rating pressure.

Astrakhan region's economy has demonstrated sound growth since
2010, but its per capita gross regional product was still about
20% lower than the national average in 2010.  However,
development of off-shore oil resources at about 500m barrels of
oil will boost the local economy in the coming years and
significantly change the structure of the economy.  Fitch
forecasts the local economy will grow at about 7% yoy in real
terms in 2012-2015.  The economy will remain concentrated.  The
10 largest taxpayers contributed 42.5% of the region's tax
revenue in 2011.

Fitch expects stabilization of Astrakhan region's budgetary
performance with operating margin at above 10% in 2012-2014.
Operating revenue will increase by about 15% in 2011 supported by
exceptionally strong growth of tax revenue by 34% yoy.  The
region's budgetary performance significantly improved in 2011,
with the operating balance accounting for 12.4% of operating
revenue, up from a low 2.7% a year earlier.  Current margin
increased to 8.7% in 2011 from negative 2.7% in 2010.

The agency forecasts that the direct risk will increase to
RUB16.8 billion by end-2012 or 64% of current revenue (2011:
RUB14.6 billion).  Direct risk will further increase in 2013-
2014, but will remain below RUB20 billion by end-2014.  In
relative terms, direct risk will stabilize at about 60%-63%.  The
debt coverage ratio (direct risk/current balance) will remain
significantly above the current maturity profile of the region's
debt in 2012-2014.  Hence the region will continue to face high
refinancing risk and weak debt-servicing ratios.

The region's debt structure is strongly biased toward short-term
bank loans.  Fitch estimates the region's refinancing needs as
significant.  It has to redeem about RUB7.6 billion in 2013 or
58% of total direct risk.  Fitch does not expect the region to
face difficulties in attracting more loans in 2013.  However, the
agency's main concern is the high cost of borrowing that would
result if the situation in the financial markets worsens.  This
would put pressure on the region's budget as debt-servicing costs
would soar.

The region has low exposure to contingent risk. Guarantees issued
by the region and the debt of public sector enterprises totaled
RUB0.5 billion at end-2011.  This represented about 2% of the
region's current revenue.  The region has decided not to issue
new guarantees until 2014.

Astrakhan region is located in the south-east part of European
Russia on the Caspian shore.  The region accounted for 0.4% of
national GDP in 2010 and for 0.7% of the population.

* LENINGRAD OBLAST: S&P Affirms 'BB+' Issuer Credit Ratings
Standard & Poor's Ratings Services affirmed its issuer credit
ratings on Russia's Leningrad Oblast at 'BB+' and its national
scale rating at 'ruAA+' The recovery rating on the oblast's
unsecured debt remains unchanged at '3'. The outlook is stable.

"The ratings on northwestern Russia's Leningrad Oblast reflect
our view of its low budgetary flexibility and predictability
within Russia's developing and unbalanced institutional framework
and the need to address federal initiatives to increase operating
spending and finance infrastructure development. Relatively low
wealth levels in an international context and some economic
concentration further constrain the ratings. Good economic growth
prospects that should support sound budgetary performance, a very
low debt burden, and a consistently positive liquidity position
support the ratings," S&P said.

"The oblast's wealth levels are modest compared with
international peers with Gross Regional Product (GRP) per capita
estimated at USD11.7 thousand in 2012. We also note that the
oblast is still subject to some economic concentration, which
leads to tax revenue volatility. We expect the oblast's 10 major
taxpayers to provide about 35% of tax revenues over the next
three years. Nevertheless, in our view, the oblast's favorable
location on transit routes to the EU, proximity to St.
Petersburg, and continued inflows of investment into its
transport and energy infrastructure and manufacturing will
continue to support its GRP growth rate at about 5% annually from
2013-2015. Over the longer term, these factors will likely result
in a more diversified tax base and contribute to improving wealth
levels," S&P said.

"Like many Russian local and regional governments (LRGs),
Leningrad Oblast suffers from low budgetary flexibility. The
oblast has very limited control over its revenues, about 95% of
which come from state-regulated taxes and transfers from the
federal government. It also has little leeway in managing its
expenditures, given the need to increase public sector salaries
and maintain infrastructure development. The unpredictable nature
of the system also limits the reliability of the oblast's medium-
term planning," S&P said.

"We see economic growth supporting budget revenue growth over the
next three years. In 2012 the oblast's budget is also likely to
benefit from additional payments from its largest taxpayers that
have joined consolidated groups in line with the new tax
legislation. However, budgetary performance will likely gradually
weaken in 2013-2015 compared with 2010-2012, because the oblast
will have to continue to raise public sector salaries and
subsidies to municipalities and maintain its capital program. In
our view, it remains to be seen whether the oblast's new
management team, appointed in 2012, will be able to constrain
spending growth in 2014-2015, especially if it is faced with
weaker tax revenues than we currently forecast. Our base-case
scenario therefore assumes an operating margin of 6% of operating
revenues in 2012 and slightly weaker 3%-5% in 2013-2015. The
positive balance after capital accounts that the oblast achieved
in 2010-2011 will likely turn into a marginal deficit in 2012
that will widen to a still modest 4%-5% of total revenues in
2013-2015," S&P said.

"Consequently, we think Leningrad Oblast will start to gradually
accumulate direct debt in the next three years, while tax
supported debt will remain low and will exceed 20% of
consolidated operating revenues by the end of 2015," S&P said.

"The stable outlook reflects our view that Leningrad Oblast's
management will be able to maintain a sound budgetary performance
and low debt burden in line with our base-case scenario for 2013-
2015 despite federal pressure to increase spending. The outlook
also assumes the oblast will rely on medium-term borrowings and
its liquidity position will remain positive," S&P said.

"We might take a negative rating action within the next 12 months
if the oblast's operating performance weakened significantly and
its operating margins declined to 0.5%-1% of operating revenues
in 2013-2015 in line with our downside-case scenario, and the
resulting depletion of cash reserves or rapid short-term debt
accumulation le to a weaker liquidity position," S&P said.

"We might take a positive rating action within the next 12 months
if we improved our assessment of the supportiveness and
predictability of Russia's system of intergovernmental relations
or observed continuity and institutionalization of the oblast's
prudent financial management practices," S&P said.

* STAYROPOL REGION: Fitch Assigns 'BB' Long-Term Currency Ratings
Fitch Ratings has assigned Russia's Stavropol Region Long-term
foreign and local currency ratings of 'BB', a Short-term foreign
currency rating of 'B' and a National Long-term rating of 'AA-
(rus)'.  The Outlooks on the Long-term ratings are Stable.

Fitch has also assigned the region's upcoming domestic bond issue
Series 34001, due December 12, 2017, an expected Long-term local
currency rating of 'BB (EXP)' and an expected National Long-term
rating of 'AA-(rus)(EXP)'.  The final rating is contingent upon
the receipt of final documents conforming to information already

The ratings reflect the agency's expectation for a stabilization
of the operating balance at about 6% of operating revenue and
lengthening of the region's direct risk maturity.  The ratings
also factor in the increasing pressure from operating expenditure
and the region's economy with wealth and economic indicators
below the national average.

Fitch notes that the maintenance of a sound operating balance at
about 12% of current revenue for two consecutive years and
maintenance of sound debt coverage in line with the average debt
maturity would lead to an upgrade.  Conversely, inability to
lengthen the direct risk maturity profile coupled with an
increase in direct risk above Fitch's expectations leading to
deterioration of debt coverage (direct risk to current balance)
above direct risk maturity would lead to a downgrade.

Fitch expects the operating balance to reach about 6% in 2012 and
stabilize at this level in 2013-2014.  In 2011, the region
recorded a moderate decline in its budgetary performance when
operating balance fell to 5.7% of operating revenue, down from a
sound 11.4% a year earlier.  The deterioration was due to
increasing pressure from operating expenditure caused by
additional spending made during elections to national parliament
and the presidential election.

Fitch expects the region will record a full-year deficit of
RUB3.8 billion in 2012 or 5.5% of forecasted full-year revenue.
About RUB2 billion of this will be covered by accumulated cash,
meaning the region's direct risk will increase by around RUB1.8
billion to RUB9.8 billion by end-2012.  Fitch expects a further
minor increase in direct risk to RUB11.7 billion during 2013-
2014, which corresponds to a moderate 16%-17% of current revenue.

The region's debt burden was low during the past five years but
was of a short-term nature.  As of December 1, 2012, it accounted
for RUB8.5 billion and about two-thirds of the region's direct
risk was represented by short-term bank loans with one-year
maturity. Stavropol needs to repay RUB3.1 billion of bank loans
(about 36% of direct risk) in December this year.  In the past
the region has not faced any difficulty in rolling over expiring
loans.  However, the short-term nature of bank loans lead to
substantial refinancing needs.

Stavropol is considering a bond issue of RUB5 billion in December
2012, which will substitute a significant proportion of short-
term bank loans.  The bond is expected to have an amortizing
structure and five-year maturity.  This action will effectively
improve the debt structure, which is dominated by bank loans, in
favor of issued debt with longer maturities and possibly lower

Stavropol's socio-economic profile is historically weaker than
that of the average Russian region and dominated by agriculture
and food processing.  Its per capita gross regional product was
about 38% lower than the national median in 2010.  However, the
region's economy proved resilient to the crisis in 2009 and
recovered swiftly in 2010-2011. The administration expects a
sound 5%-6% annual growth of the region's economy in the next
three years.

Stavropol is located in the south of the European part of the
Russian Federation.  The region contributed 0.8% of the Russian
Federation's GDP in 2010 and accounted for 2% of the country's

* RUSSIA: Moody's Compares "Big Three" Mobile Operators
Among Russia's "Big Three" mobile operators, MegaFon OJSC (Baa3
negative), Mobile TeleSystems OJSC (MTS; Ba2 stable) and Vimpel-
Communications OJSC (VimpelCom; Ba3 stable), MTS has the
strongest business profile, says Moody's Investors Service in a
new CreditFocus report published  on Dec. 13.  Moody's expects
MTS to retain its lead in terms of subscribers and revenues for
now, but it could face competition from MegaFon in the longer

The new report is entitled "MegaFon, MTS and VimpelCom: Peer

MTS is the leader both in terms of mobile subscriber base in
Russia (31% of total as of September 2012 according to Advanced
Communications and Media, a research agency) and revenues ($12.2
billion in the 12 months to September 2012), and has a
substantial presence in the fixed-line segment along with core
mobile operations. The next-strongest in terms of business
profile is MegaFon, due to its leadership position in the mobile
data segment, which is the most promising segment in terms of
revenue growth. VimpelCom lags both companies in terms of market
share and 3G network coverage, and has seen a decline in its
subscriber base in 2012.

Historically, MegaFon's operating efficiency, measured by
adjusted EBITDA margin, has been higher than that of MTS and
VimpelCom. However, the gap has been decreasing gradually and
currently all three companies' margins are comparable. Moody's
expects this to remain the case over the next 12-18 months, as
all three companies are focused on operating efficiencies,
reducing churn and increasing the loyalty of their subscriber
base, as opposed to its quantity, which should support operating

MegaFon has the most conservative financial policy in the peer
group, and has declared its commitment to an investment-grade
credit rating. VimpelCom Ltd.'s (Ba3 stable) public financial
policy is the most conservative after MegaFon, but does not
contain any details regarding its Russian subsidiary VimpelCom --
which remains its main source of cash -- giving rise to some
uncertainty. MTS's public policy is less conservative than that
of VimpelCom Ltd and is shaped by its controlling shareholder,
Sistema JSFC (Ba3 stable), a Russian private conglomerate
investing in a broad range of industries. Sistema is acquisitive
in its nature and therefore could potentially increase its cash
requirements from MTS.

MegaFon led the peer group in terms of financial metrics before
the debt-financed US$4.9 billion extraordinary dividend payout
and US$2.1 billion purchase of its shares in April 2012, which
resulted in its debt/EBITDA growing dramatically to 1.9x as of
September 2012 and retained cash flow (RCF)/debt turning negative
(compared with 1.1x and 81% as of end-2011, respectively).
However, Moody's expects that MegaFon will largely restore its
strong financial metrics over the next 12 months by implementing
cost-saving measures and reducing capex. This expectation is one
of the key factors explaining the differences between the ratings
of MegaFon and MTS, whose current financial profile is similar.
MTS's financial metrics are likely to remain broadly stable over
the next 12-18 months, with leverage in the range of 1.7x-1.9x
debt/EBITDA, funds from operations (FFO) interest coverage above
6.0x and RCF/debt around 30%. VimpelCom's financial metrics are
likely to remain somewhat weaker than those of its peers,
reflected by debt/EBITDA above 2.0x, FFO interest coverage around
4x-5x and RCF/debt around 20%.


HRT F1: Is Already In Liquidation, Supplier Says
------------------------------------------------ reports that Formtech Composites, a carbon fibre
manufacturer, said that the beleaguered Spanish team HRT entered
liquidation proceedings on November 12 -- well before the 2012
season ended. relates that the supplier said HRT is now only
willing to pay 30% of its debt.

"It has come to our knowledge that (HRT) owe a substantial amount
of money to other suppliers in the motor sports industry,"
Formtech added.

Formtech also accused HRT of giving "misleading information"
about its situation, the report adds.

HRT Formula 1 Team, formerly known as Campos Meta 1 and Hispania
Racing, was a Spanish Formula One team.


VESTEL ELEKTRONIK: Fitch Withdraws 'B' Long-Term Currency IDRs
Fitch Ratings has affirmed Turkey-based Vestel Elektronik Sanayi
Ve Ticaret A.S's Long-term foreign and local currency Issuer
Default Ratings (IDR) at 'B'.  The Outlook on both IDRs is
Stable.  The agency has simultaneously withdrawn all the ratings.
The ratings have been withdrawn as they are no longer considered
by Fitch to be relevant to the agency's coverage.  Fitch will no
longer provide rating or analytical coverage of this issuer.

U N I T E D   K I N G D O M

AVINCIS MISSION: Moody's Cuts CFR to 'B2'; Outlook Negative
Moody's Investors Service  has lowered to B2 from B1 the
corporate family rating ("CFR") of Avincis Mission Critical
Services Group, S.A.U. Concurrently, Moody's has downgraded Inaer
Aviation Finance Limited's Senior Secured Notes to B3 and
affirmed the EUR145 million Revolving Credit Facility at Ba3. The
outlook on all these ratings remains negative.

Ratings Rationale

"The downgrade of Avincis' CFR to B2 reflects Moody's concerns
that the companies of the Group subject to the restrictive
covenants of the notes and the Revolving Credit Facility ("the HY
Credit Group") will underperform our previous expectations,
resulting in metrics that fall outside of our current guidance to
maintain the B1 CFR", says Sebastien Cieniewski, lead analyst for
the Group. "Concurrently, the negative outlook is maintained, as
we believe the wider macro-economic outlook for HY Credit Group's
main operating regions (Spain and Italy) remains negative."

In the first nine months of FY2012, the HY Credit Group reported
a 2% increase in revenues to EUR314 million when compared to the
same period last year. Although top line performance has proven
resilient despite the weak economic environment, our expectations
are that the loss of 4 contracts in Spain only partly offset by
contract wins and a decline in margins will result in EBITDA
below expectations, driving an increase in leverage. Moody's
notes that margins have been predominantly impacted by a number
of additional costs experienced in the start-up of contracts in
France and Italy. Additionally, there has been a significant
reduction in factoring, increasing the working capital needs of
the HY Credit Group, although part of the factors impacting
working capital, such as the delayed renewal of the large SAR
contract in Spain, are one-off in nature.

The negative outlook has been maintained as Moody's believes the
initial factors driving the original negative outlook remain.
Moody's expects that the macro-economic environment in Spain and
Italy will continue to remain weak through 2013, which could
result in further pressure on pricing and contract renewals as
well as further withdrawals of factoring lines.

Negative ratings pressure could develop if Group leverage fails
to stay below 6.5x on a sustained basis; or if liquidity weakens,
potentially driven by any further reduction in factoring.

The outlook could be stabilized if the HY Credit Group continues
to maintain a high contract renewal rate of above 95%; the macro-
economic environment stabilizes; and revenues achieve further
geographic diversification. Moody's would also expect to see a
stabilization in leverage and an improved liquidity profile.

The principal methodology used in rating Avincis Mission Critical
Services Group, S.A.U. and Inaer Aviation Finance Limited 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 London, England, Avincis Mission Critical
Services Group, S.A.U. is the parent of Inaer Aviation Spain
S.A.U., a helicopter services provider specializing in the
provision of mission-critical services to public administrations
and oil & gas corporations. The company operates in ten
countries: Spain (37% of 2011 sales), Italy (24%), the UK (22%),
Australia (6%), France (5%), Portugal, Chile, Peru, Ireland,
Norway (6% in total). Avincis reported revenues of EUR521 million
and EBITDA of EUR136 million for FY2011 (including the
acquisition of Bond Aviation Group Limited consolidated from May

COMET: HM Revenue & Customs to Face GBP26-Mil. Loss From Collapse
James Quinn and Graham Ruddick at The Sunday Telegraph report
that Comet collapsed under almost GBP200 million of losses, which
will leave the taxpayer facing a GBP26 million hit.

According to the Sunday Telegraph, secured creditors, led by the
financial investors who backed Comet, are expected to receive a
return of 34p in the pound, while unsecured creditors, including
HM Revenue & Customs which is owed GBP26.1 million, will receive

The true extent of the financial picture surrounding the
administration of the 236-store chain will be laid bare in a
detailed report expected to be published by administrator,
Deloitte, today, Dec. 17, the Sunday Telegraph discloses.

The Sunday Telegraph understands the report, the joint
administrator's statement of proposals, will show that the
backers of Comet's parent company, Hailey Acquisitions Limited
(HAL), will receive payments of GBP49.7 million as a result of
secured loans.

HAL, a group of US and British investors brought together by
Greybull Capital, was owed GBP145 million at the time of Comet's
collapse on Nov. 2, incurring a GBP95.3 million shortfall, the
Sunday Telegraph notes.

According to the Sunday Telegraph, GBP2.1 million of holiday pay
and back pay owed to some of the firm's 6,611 original staff will
be paid in full.

The report will provide Deloitte's first detailed explanation of
what exactly went wrong at Comet, the Sunday Telegraph says.

The retailer was bought by HAL's investors -- believed to include
US activist investor Elliott Advisors -- for GBP2 from Kesa in
November 2011 in a deal which was structured by private equity
firm OpCapita, the Sunday Telegraph recounts.

OpCapita is thought to be one of HAL's investors but the exact
identity remains a closely guarded secret, the Sunday Telegraph

The analysis is expected to show that around the time of the
acquisition, credit insurers began to pull cover, leading to a
tightening of working capital, the Sunday Telegraph discloses.

According to the Sunday Telegraph, although Comet, which was
being managed by former Dixons chief executive John Clare, began
to institute cost reductions, sales declined further.

Once news leaked in late September that the company was up for
sale, there was further tightening of credit insurance conditions
and general credit lines, which led to the administration filing
at the start of November, the Sunday Telegraph recounts.

The much-anticipated report will also show for the first time the
losses the retailer accrued in the past 18 months of its life,
the Sunday Telegraph says.  In the year to April 28, the company
made a GBP95 million loss, the Sunday Telegraph relates.  In the
subsequent five months, it made a GBP30 million loss, the Sunday
Telegraph discloses.

According to The Financial Times' Andrea Felsted, OpCapita stands
to recover about GBP50 million from the collapse of Comet.
OpCapita also received a GBP50 million cash dowry from Kesa, now
known as Darty, when it acquired Comet in February, the FT says.
It continues to own Comet's warranties business, which is not in
administration, the FT notes.

The recovery could spark fresh questions about the collapse of
Comet, where all stores are due to close by Dec. 18, and
thousands of jobs will be lost, the FT states.

Headquartered in Rickmansworth, Comet is an electrical retailer.
Comet operates out of 236 stores across the UK, and employed
6,611 people -- a full time equivalent workforce of 4,682

Neville Kahn, Nick Edwards and Chris Farrington of Deloitte were
appointed Joint Administrators to Comet on Nov. 2, 2012.
Deloitte said like many other retailers, Comet has been hit hard
by the uncertain economic environment, slow consumer spending and
lack of consumer confidence.  Despite significant investment in
the business and the efforts of the experienced management team,
Comet has struggled to compete with online retailers which have
far lower overhead costs and can offer cheaper products, Deloitte

ENTERPRISE INNS: S&P Affirms 'B' Longterm Corp. Credit Rating
Standard & Poor's Ratings Services said that it revised its
outlook on U.K. tenanted public house (pub) operator Enterprise
Inns PLC (ETI, the company) to stable from negative. "At the same
time, we affirmed our 'B' long-term corporate credit rating on
the company," S&P said.

"At the same time, we affirmed our 'BB-' issue ratings on ETI's
five senior secured bonds. The recovery rating on these bonds is
unchanged at '1', reflecting our expectation of very high (90%-
100%) recovery for senior secured lenders in the event of a
payment default," S&P said.

"The outlook revision reflects ETI's focus on debt reduction
through asset disposals, its stabilizing operating performance,
and a reduction in liquidity risks owing to the refinancing of
part of its bank facility. In addition, ETI has significantly
reduced the risk of a dividend lock-up in its Unique Pub Finance
Co. PLC (Unique) securitization," S&P said.

"In our base-case scenario for the financial year ending Sept.
30, 2013 (financial 2013), we forecast a 5% fall in both revenues
and Standard & Poor's-adjusted EBITDA to about GBP660 million and
GBP335 million. The forecast falls are primarily the result of
ETI's disposal of an estimated 300 pubs in financial 2013. The
operating environment for tenanted pub operators is likely to
remain challenging, in our view, and we forecast low single-digit
negative like-for-like sales across the whole ETI estate," S&P

"However, we anticipate positive like-for-like sales growth for
approximately 75% of ETI's pubs where the tenant has been in
place for more than one year. This indicates to us stabilization
in operating performance. Beyond 2013, we expect the pace of the
ongoing decline in ETI's revenues and EBITDA over the past few
years to slow, as the rationalization of the estate comes to a
close. The smaller estate of about 5,200 pubs in 2015, down from
7,800 pubs in 2008, is likely to generate annual income of about
GBP625 million and adjusted EBITDA of about GBP300 million," S&P

"For financial 2013, we forecast reduced leverage, with adjusted
debt to EBITDA of about 8.5x, down from 8.8x currently. We base
our forecasts on our assumption that ETI will achieve a further
GBP150 million of asset disposals following GBP208 million of
disposals in 2012. We forecast that ETI will generate free
operating cash flow of GBP50 million after capital expenditure
(capex) of GBP65 million, and that adjusted EBITDA interest
coverage will be 1.7x. On a deconsolidated basis, excluding the
Unique securitization, EBITDA interest coverage will be about
2.5x. We consider these ratios to be commensurate with the
current 'B' rating," S&P said.

"In financial 2012, ETI repaid GBP129 million of its bank
facility that expires in December 2013 and reduced the balances
on its Unique securitization bonds by GBP181 million using
operating cash flow and net proceeds from its GBP208 million of
property sales. ETI also refinanced GBP220 million of the bank
facility early under a forward-start agreement. This leaves
GBP115 million to be repaid from asset disposals and operating
cash flow by December 2013, against the current drawn balance of
GBP335 million. This gives ETI a loan-to-value ratio of 63%. The
company's strong asset base gives it financial flexibility to
manage its liquidity, which we assess as 'less than adequate' and
financial risk profile, which we assess as 'highly leveraged,'"
S&P said.

"We could lower the ratings if liquidity were to weaken or if
solo EBITDA interest coverage were to drop to less than 2x
(adjusted consolidated interest coverage of less than 1.5x). This
could result from a decline in revenues and earnings beyond our
forecasts, Unique entering dividend lock-up, or ETI's inability
to achieve budgeted asset disposals," S&P said.

"Ratings upside is limited, but would likely result from a
sustained improvement in liquidity or a reduction in adjusted
leverage on the back of improving operating performance and
successful execution of the asset disposal strategy," S&P said.

GALA CORAL: Fitch Affirms 'B' Long-Term IDR; Outlook Stable
Fitch Ratings has revised Gala Coral Group Ltd's Rating Outlook
to Stable from Negative.  The agency has simultaneously affirmed
Gala's Long-term Issuer Default Rating (IDR) at 'B'.  Fitch has
also affirmed Gala's subsidiary Gala Electric Casinos plc's
senior notes 'CCC+' rating and Recovery Rating of 'RR6'as well as
Gala's subsidiary Gala Group Finance plc's senior secured notes
at 'BB-' with a Recovery Rating of 'RR2'.

The revision of Gala's Outlook to Stable reflects the fact that
the turnaround plan launched in late 2010 has started to bear
fruit.  Gala is displaying sustainability in the improved
competitive profile of its bingo and high-street betting units
and has reported -- after five years of continued profit decline
-- mild growth for FY12 group turnover, gross profit and EBITDA.
The growth is organic and excludes the impact of Euro 2012 and
the extra week of trading.  At the same time, the rating was
affirmed at 'B' as a result of high leverage and the remaining
execution risks in the turnaround process.


Coral Stabilizing

After gradually losing market share to peers William Hill and
Ladbrokes, Coral is starting to close the gap.  For the first
half of 2012 over-the-counter gross win margin (18.1%) is now in
line with William Hill (17.8%) and better than Ladbrokes (16.2%).
Average gross win per machine per week over calendar Q312 was
GBP903, better than William Hill (GBP888) but weaker than
Ladbrokes (GBP937).  Fitch expects further improvements in
Coral's machine estate from the forthcoming roll out of Global
Draw's new cabinets.

Bingo Performance Maintained

Admissions have declined in FY12 due to the reduction of free
bingo and partly a softer consumer spending environment.  This
however has been offset by an improvement in spend per head,
which was GBP32.91, up from GBP31.62 a year earlier, thanks to
better customer and product mix.  In addition, improved margins
across all product groups have offset increased costs with
divisional EBITDA of, excluding week 53, close to GBP69 million
(up 17% yoy).  Fitch expects attendance to remain under pressure
but further scope to increase spend and margins will enable
further EBITDA improvements.

Online Re-Platforming on Plan

Q312 saw the re-launch of and just after the
quarter end,, both of which have shown good KPI
traction, albeit from a low base.  EBITDA at FYE12 for
Interactive was close to GBP26m, marginally up yoy.  Fitch
expects only marginal improvements in profitability for FY13 as
top line growth will be achieved through increased marketing
costs and these will weigh on divisional profit.  In early
October was re-launched.

Free Cash Flow Improvements

Gala reported a mildly negative free cash flow (FCF) of GBP2.8
million in FY12 due to increased capex and higher restructuring
costs.  However Fitch expects both of these to reduce from FY13
and, coupled with better profitability, to lead to increasing
FCF.  Positive FCF and the likely disposal of Gala Casinos to
Rank should enable a reduction of the currently still high net
lease adjusted leverage (calculated including PropCo debt) of
6.3x.  This remains high for Gala's 'B' rating.


Negative: Future developments that could lead to negative rating
action include:

  -- EBITDA failing to maintain a trajectory of moderate growth
  -- FCF close to zero
  -- Net lease adjusted funds from operations (FFO)-based
     leverage higher than 6.5x on a sustained basis
  -- Gross lease adjusted FFO-based leverage remaining higher
     than 7.0x on a sustained basis

Positive: Future developments that could lead to positive rating
action include:

  -- Net lease adjusted FFO-based leverage falling below 5.0x on
     a sustained basis
  -- Gross lease adjusted FFO-based leverage falling below 6.0x
     on a sustained basis

WEAVERING CAPITAL: Founder Face SFO Charges in Collapse Probe
Caroline Binham and Sam Jones at The Financial Times report that
Ulf Magnus Michael Peterson, the founder of Weavering Capital,
the US$600 million London-based hedge fund that collapsed in
2009, has been charged with fraud, forgery and false accounting
by the UK's Serious Fraud Office.

According to the FT, the SFO said in a statement on Friday that
Mr. Peterson, 49, will appear in court in January to face the

The charges come after the new director of the SFO, David Green,
decided to reopen the Weavering file -- a case that his
predecessor had dropped after concluding that there was not a
reasonable chance of convicting suspects, the FT relates.

After the SFO ended its initial investigation in September 2011,
it was threatened in May this year with judicial review by
Weavering's creditors, the FT discloses.  Mr. Peterson lost a
high court case examining the collapse of Weavering that month,
the FT recounts.

Weavering Capital (UK) Limited is an English incorporated
investment management firm, which went into administration on
March 19, 2009, whose primary function was to act as investment
advisor to a Cayman Islands incorporated hedge fund, Weavering
Macro Fixed Income Fund Limited ("the Macro Fund").  Liquidators
were appointed over the Macro Fund on March 19, 2009.  The Macro
Fund was understood to have funds under management of around
US$639 million in late 2008


* EUROPE: Moody's Says Credit Quality to Deteriorate in 2013
The credit quality of new vintage collateralized loan obligations
(CLOs) in the US in 2013 will be similar to that of CLOs
originated in 2012 and remain stable in Asia (ex-Japan), but will
deteriorate in Europe, according to a new report from Moody's
Investors Service, "Global CLOs: 2013 Outlook."

Moody's outlook for CLO collateral performance is stable for US
CLOs and Asia (ex-Japan) balance sheet CLOs, but negative for
that of European CLOs and Japanese SME CLOs. The economic outlook
remains uncertain, with more downside than upside risk; the
greatest source of risk remains the euro area crisis.
Amortization in existing deals will offset collateral
deterioration, bolstering senior tranche performance in all
regions, however.

New issuance will reflect regional economic prospects. The bulk
of new issuance will be in the US, where Moody's expects growth
of approximately 30%, with some meaningful activity in Asia (ex-
Japan), a trickle of transactions in Europe, and minimal if any
issuance in Japan.

US Broadly Syndicated Loan (BSL) CLOs

Most factors point toward continued growth in US CLO activity in
2013. US CLO credit quality will be stable in 2013 because
corporate loan performance will be stable. Structures and
collateral of new US CLOs will be strong, as in 2012 CLOs.

"Debt investors are demanding conservative structures, which can
still offer equity investors expected returns in the low- to mid-
teens in current market conditions," says Moody's Managing
Director Yvonne Fu.

"The primary risks to our outlook stem from US domestic fiscal
policy and the still unresolved euro area crisis," adds Moody's
Managing Director Jian Hu.

European BSL CLOs

The credit quality of existing European CLOs will weaken further,
particularly the proportion of assets whose credit quality is
consistent with ratings of Caa or lower. Because of ongoing de-
leveraging, Moody's outlook for senior notes is stable, but
negative for junior notes.

"Collateral performance will be weak, although we don't think the
default rate will spike," says Moody's Vice President -- Senior
Analyst Guillaume Jolivet. "European CLO portfolios have only
small exposures to Greece, Ireland, Italy, Portugal and Spain,
which minimizes their exposure to sovereign risk. But barring a
quick and clean resolution of the euro area crisis, European CLO
issuance will again be minimal."

European Balance-Sheet CLOs

Moody's is maintaining its negative outlook for European cash
transactions because of their exposures to sovereign,
counterparty and operational risk. The credit performance of
these CLOs will vary widely, reflecting the very different
collateral pools backing these transactions.

In contrast, the credit performance of synthetic transactions
will be stable as they approach their maturity, given their
portfolio diversification.

Asia (ex-Japan) Synthetic Balance-Sheet CLOs

Deals in 2013 will be similar to those issued in 2012 and
incorporate significant investor protections. The synthetic CDS
structure, in which reference credits are mainly emerging-market
corporates, will continue to dominate. Although most of the
countries of domicile for obligors in reference pools have
sovereign ceilings below Aaa, diversification will mitigate
sovereign risk.

"Moody's stable outlook for the performance of underlying
collateral, (in the form of senior unsecured term loans or trade
loans to corporate obligors,) reflects 1) a low projected default
rate, 2) robust growth in emerging market countries, and 3) the
mostly stable outlook for the most represented industry sectors,"
says Moody's Vice President -- Senior Credit Officer Jerome
Cheng. "The Pprimary risks to the outlook are a potential hard
landing in China and a deep and prolonged recession in Europe."

Issuance will be stable, as in 2012. New sponsors may emerge,
because more banks are looking for tools such as CLOs to generate
client-focused growth and improve the efficiency of economic and
regulatory capital.

US (Small and Medium Enterprise) SME CLOs

Issuance of US SME CLOs will pick up and credit quality will be
similar to that in 2012 CLOs. For the most part, US SME CLO
issuance has echoed that of BSL CLOs, although at a much lower
level. SME collateral is less liquid than BSL collateral, and SME
issuers generally do not have access to alternative high-yield
bond markets to refinance debt, which increases the risk of
default. However, these risks will be mitigated by relatively
lower leverage, stronger covenant, and better potential for

French and German SME CLOs

Moody's is maintaining its negative credit outlook for German SME
CLOs, based on the difficult refinancing environment for SME
loans in the portfolios of these transactions. Moody's is also
maintaining its negative outlook for French SME CLOs because of
the sensitivity of French SME obligors to the difficult and
deteriorating operating environment in France. New issuance in
both Germany and France will be minimal in 2013.

Japanese SME CLOs

The forthcoming expiration of Moratorium Law in March 2013 will
be credit negative for collateral quality. However, Japanese SME
CLOs will continue to deleverage, mitigating the negative outlook
for loan performance. New issuance will be minimal.

* EUROPE: Moody's Says Bank Risk Hits Covered Bond Credit Quality
In Europe, ongoing negative pressure on sovereigns and issuers
will continue to pose material risks for issuer and covered bond
credit quality in 2013, although the pace of covered bond
downgrades is expected to be slower than in 2012, says Moody's
Investors Service in a Special Report published on Dec. 13.
Outside Europe, markets are set to grow and will benefit the most
where covered bond legislation is in place.

The new report is entitled "Global Covered Bonds: 2013 Outlook".

"Across Europe, the high number of negative sovereign outlooks
implies that sovereign risk will continue to exert negative
pressure on issuers and Timely Payment Indicators. Further,
negative outlooks on issuers persist across a broad range of
jurisdictions, reflecting weak operating environments, pressure
on profitability due to squeezed margins and increasing liquidity
needs, funding pressure and continued downside asset-quality
risks," explains Jane Soldera a Moody's Vice President -- Senior
Credit Officer and author of the report.

"We expect further covered bond downgrades in 2013, but do not
expect these to match the rate of downgrades experienced in 2012,
assuming our central scenario that no country exits the euro
area. However, we expect greater alignment between the rate of
covered bond downgrades and issuer downgrades in 2013, as TPI
leeway continues to contract and as issuers provide falling
levels of discretionary support to their covered bond programs"
adds Ms. Soldera.

Moody's says that the European Directive on resolution and
recovery is likely to be finalized in 2013, proposing wide powers
and greater flexibility for regulators, including a bail-in tool.
Moody's believes that the bail-in tool is unlikely to apply
directly to covered bonds, but poses a threat to issuer credit
quality if issuer ratings are downgraded due to the prospect of
bail-in. However, in core jurisdictions, Moody's expects
authorities to protect the covered bond product by using options
available under the Directive to support the covered bonds of a
bailed-in issuer. Bail-in is therefore less likely to be credit
negative in core jurisdictions compared to non-core

Ongoing regulatory developments, both at the pan-European and
national level, will generally support the covered bond product
and promote a broader and deeper covered bond market. However,
new jurisdictions continue to limit covered bond issuance due to
asset encumbrance concerns. While these limits may be relaxed
once markets develop, the encumbrance debate is now moving to
more mature markets. Moody's may need to increasingly consider
the policies behind issuance limits and how they reflect on
covered bonds' importance as a funding source.

Outside Europe, a number of covered bond markets are poised for
growth and development. In Australia and New Zealand, where
relatively high issuer ratings and stable residential mortgage
collateral benefit covered bond credit quality, Moody's expects
robust issuance in 2013. In Asia, Korea is ready to enact a new
covered bond law that will support its fledgling covered bond
market. Singapore has draft regulatory guidelines for covered
bonds and will likely be the next Asian market to see issuance.
In Canada, a new covered bond law will entail a large-scale
overhaul for the covered bond market in 2013, whilst in the US
and Latin America, Moody's notes that further market development
remains contingent on legislative developments.

* BOND PRICING: For the Week December 10 to December 14, 2012

Issuer                  Coupon    Maturity  Currency     Price
------                  ------    --------  --------     -----

A-TEC INDUSTRIES          8.750  10/27/2014      EUR      27.75
A-TEC INDUSTRIES          2.750   5/10/2014      EUR      29.13
IMMOFINANZ                4.250    3/8/2018      EUR       4.29
RAIFF CENTROBANK          8.907   7/24/2013      EUR      58.30
RAIFF CENTROBANK          8.588   1/23/2013      EUR      73.37
RAIFF CENTROBANK          7.965   1/23/2013      EUR      55.53
RAIFF CENTROBANK          7.873   1/23/2013      EUR      66.96
RAIFF CENTROBANK          7.646   1/23/2013      EUR      45.43
RAIFF CENTROBANK          5.097   1/23/2013      EUR      58.24
RAIFF CENTROBANK          8.417   1/22/2014      EUR      67.62
RAIFF CENTROBANK          7.122   1/22/2014      EUR      66.49
RAIFF CENTROBANK         11.134   7/24/2013      EUR      66.13
RAIFF CENTROBANK          9.200   7/24/2013      EUR      56.71
RAIFF CENTROBANK          9.304   1/23/2013      EUR      62.19
RAIFF CENTROBANK          9.876   1/23/2013      EUR      60.11
RAIFF CENTROBANK          9.558   1/23/2013      EUR      67.69
RAIFF CENTROBANK          8.920   1/23/2013      EUR      52.62

ECONOCOM GROUP            4.000    6/1/2016      EUR      22.94
TALVIVAARA                4.000  12/16/2015      EUR      72.61

AIR FRANCE-KLM            4.970    4/1/2015      EUR      12.38
ALCATEL-LUCENT            5.000    1/1/2015      EUR       2.62
ALTRAN TECHNOLOG          6.720    1/1/2015      EUR       5.62
ASSYSTEM                  4.000    1/1/2017      EUR      23.27
ATOS ORIGIN SA            2.500    1/1/2016      EUR      58.17
CAP GEMINI SOGET          3.500    1/1/2014      EUR      38.69
CGG VERITAS               1.750    1/1/2016      EUR      31.64
CLUB MEDITERRANE          6.110   11/1/2015      EUR      17.80
EURAZEO                   6.250   6/10/2014      EUR      55.33
FAURECIA                  3.250    1/1/2018      EUR      17.91
FAURECIA                  4.500    1/1/2015      EUR      19.45
INGENICO                  2.750    1/1/2017      EUR      48.14
MAUREL ET PROM            7.125   7/31/2015      EUR      17.13
MAUREL ET PROM            7.125   7/31/2014      EUR      18.15
NEXANS SA                 2.500    1/1/2019      EUR      66.69
NEXANS SA                 4.000    1/1/2016      EUR      56.09
ORPEA                     3.875    1/1/2016      EUR      47.89
PEUGEOT SA                4.450    1/1/2016      EUR      23.56
PIERRE VACANCES           4.000   10/1/2015      EUR      73.63
PUBLICIS GROUPE           1.000   1/18/2018      EUR      54.06
SOC AIR FRANCE            2.750    4/1/2020      EUR      21.24
SOITEC                    6.250    9/9/2014      EUR       7.25
TEM                       4.250    1/1/2015      EUR      54.36

BNP EMIS-U.HANDE          9.750  12/28/2012      EUR      58.32
BNP EMIS-U.HANDE         10.500  12/28/2012      EUR      47.62
BNP EMIS-U.HANDE          9.500  12/31/2012      EUR      64.67
BNP EMIS-U.HANDE          7.750  12/31/2012      EUR      49.92
COMMERZBANK AG            6.000  12/27/2012      EUR      73.49
COMMERZBANK AG            7.000  12/27/2012      EUR      60.71
COMMERZBANK AG           13.000  12/28/2012      EUR      47.48
COMMERZBANK AG           16.750    1/3/2013      EUR      73.77
COMMERZBANK AG            8.400  12/30/2013      EUR      13.74
COMMERZBANK AG            8.000  12/27/2012      EUR      43.32
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      69.20
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      64.90
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      67.10
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      72.90
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      71.60
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      74.20
DEUTSCHE BANK AG         12.000   2/28/2013      EUR      75.00
DEUTSCHE BANK AG         11.000    4/2/2013      EUR      73.80
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      69.50
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      72.10
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      70.30
DEUTSCHE BANK AG         15.000   2/20/2013      EUR      68.00
DEUTSCHE BANK AG         11.000   1/18/2013      EUR      73.10
DEUTSCHE BANK AG         15.000  12/20/2012      EUR      62.10
DEUTSCHE BANK AG         12.000  12/20/2012      EUR      66.50
DEUTSCHE BANK AG         12.000  12/20/2012      EUR      41.90
DEUTSCHE BANK AG         12.000  12/20/2012      EUR      68.10
DEUTSCHE BANK AG         10.000  12/20/2012      EUR      74.90
DEUTSCHE BANK AG         10.000  12/20/2012      EUR      72.10
DEUTSCHE BANK AG         10.000  12/20/2012      EUR      63.00
DEUTSCHE BANK AG          9.000  12/20/2012      EUR      62.90
DEUTSCHE BANK AG          9.000  12/20/2012      EUR      73.40
DEUTSCHE BANK AG          8.000  12/20/2012      EUR      61.20
DEUTSCHE BANK AG          8.000  12/20/2012      EUR      70.40
DEUTSCHE BANK AG          8.000  12/20/2012      EUR      69.50
DEUTSCHE BANK AG          8.000  12/20/2012      EUR      38.60
DEUTSCHE BANK AG          7.000  12/20/2012      EUR      69.40
DEUTSCHE BANK AG         12.000  11/29/2012      EUR      65.20
DEUTSCHE BANK AG          9.000  11/29/2012      EUR      67.10
DEUTSCHE BANK AG          6.500   6/28/2013      EUR      53.50
DEUTSCHE BANK AG         12.000    4/2/2013      EUR      74.50
DEUTSCHE BANK AG          8.000  11/29/2012      EUR      71.50
DZ BANK AG               15.500  10/25/2013      EUR      71.05
DZ BANK AG               15.750   9/27/2013      EUR      74.86
DZ BANK AG               15.750   7/26/2013      EUR      71.21
DZ BANK AG               15.000   7/26/2013      EUR      75.00
DZ BANK AG                6.000   7/26/2013      EUR      69.50
DZ BANK AG               22.000   6/28/2013      EUR      73.36
DZ BANK AG               18.000   6/28/2013      EUR      69.28
DZ BANK AG               14.000   6/28/2013      EUR      73.43
DZ BANK AG                6.500   6/28/2013      EUR      67.14
DZ BANK AG                6.000   6/28/2013      EUR      65.07
DZ BANK AG               19.500   4/26/2013      EUR      61.83
DZ BANK AG               18.500   4/26/2013      EUR      57.11
DZ BANK AG               17.000   4/26/2013      EUR      15.42
DZ BANK AG               16.500   4/26/2013      EUR      59.63
DZ BANK AG               15.750   4/26/2013      EUR      43.33
DZ BANK AG               14.500   4/26/2013      EUR      56.77
DZ BANK AG               20.000   3/22/2013      EUR      70.81
DZ BANK AG               18.500   3/22/2013      EUR      74.74
DZ BANK AG               13.000   3/22/2013      EUR      74.16
DZ BANK AG               13.000   3/22/2013      EUR      73.95
DZ BANK AG               12.500   3/22/2013      EUR      72.97
DZ BANK AG               12.250   3/22/2013      EUR      74.07
DZ BANK AG               13.750    3/8/2013      EUR      54.29
DZ BANK AG               10.000    3/8/2013      EUR      68.17
DZ BANK AG                9.750    3/8/2013      EUR      73.96
DZ BANK AG               15.000   2/22/2013      EUR      74.66
DZ BANK AG               10.000  11/23/2012      EUR      72.63
DZ BANK AG               18.000   1/25/2013      EUR      61.25
DZ BANK AG               19.000   1/25/2013      EUR      44.10
DZ BANK AG               10.250    2/8/2013      EUR      71.38
DZ BANK AG               10.250    2/8/2013      EUR      71.88
DZ BANK AG               15.000   2/22/2013      EUR      70.66
DZ BANK AG               15.000   2/22/2013      EUR      71.94
DZ BANK AG               15.000   2/22/2013      EUR      69.43
DZ BANK AG               15.000   2/22/2013      EUR      73.27
DZ BANK AG               15.000   2/22/2013      EUR      68.24
DZ BANK AG               15.000   2/22/2013      EUR      67.09
DZ BANK AG               11.500  11/23/2012      EUR      74.94
DZ BANK AG               16.750  11/23/2012      EUR      63.46
DZ BANK AG               20.000  11/23/2012      EUR      41.34
DZ BANK AG                5.000  12/14/2012      EUR      69.68
DZ BANK AG                9.750  12/14/2012      EUR      66.05
DZ BANK AG                6.000    1/2/2013      EUR      74.23
DZ BANK AG                9.500    1/2/2013      EUR      71.10
DZ BANK AG               12.000    1/2/2013      EUR      65.09
DZ BANK AG               16.250    1/2/2013      EUR      68.65
DZ BANK AG               10.500   1/11/2013      EUR      66.00
DZ BANK AG               14.000   1/11/2013      EUR      48.04
DZ BANK AG               15.500   1/11/2013      EUR      53.41
DZ BANK AG               12.500   1/25/2013      EUR      50.73
GOLDMAN SACHS CO         13.000   3/20/2013      EUR      74.90
GOLDMAN SACHS CO         17.000   3/20/2013      EUR      73.30
GOLDMAN SACHS CO         16.000   6/26/2013      EUR      74.30
GOLDMAN SACHS CO         18.000   3/20/2013      EUR      69.10
GOLDMAN SACHS CO         14.000  12/28/2012      EUR      72.60
GOLDMAN SACHS CO         15.000  12/28/2012      EUR      71.70
GOLDMAN SACHS CO         13.000  12/27/2013      EUR      72.70
HSBC TRINKAUS            25.500   6/28/2013      EUR      57.61
HSBC TRINKAUS            30.000   6/28/2013      EUR      46.90
HSBC TRINKAUS            26.000   6/28/2013      EUR      48.63
HSBC TRINKAUS             7.500   3/22/2013      EUR      74.76
HSBC TRINKAUS             7.500   3/22/2013      EUR      74.06
HSBC TRINKAUS             8.000   3/22/2013      EUR      67.07
HSBC TRINKAUS             8.500   3/22/2013      EUR      67.98
HSBC TRINKAUS            10.500   3/22/2013      EUR      72.84
HSBC TRINKAUS            10.500   3/22/2013      EUR      62.42
HSBC TRINKAUS            10.500   3/22/2013      EUR      45.38
HSBC TRINKAUS            10.500   3/22/2013      EUR      65.52
HSBC TRINKAUS            12.000   3/22/2013      EUR      72.94
HSBC TRINKAUS            13.000   3/22/2013      EUR      60.74
HSBC TRINKAUS            13.500   3/22/2013      EUR      60.07
HSBC TRINKAUS            13.500   3/22/2013      EUR      61.08
HSBC TRINKAUS            14.000   3/22/2013      EUR      74.53
HSBC TRINKAUS            14.000   3/22/2013      EUR      61.21
HSBC TRINKAUS            15.000   3/22/2013      EUR      71.40
HSBC TRINKAUS            15.500   3/22/2013      EUR      41.52
HSBC TRINKAUS            16.000   3/22/2013      EUR      72.28
HSBC TRINKAUS            16.000   3/22/2013      EUR      67.45
HSBC TRINKAUS            16.500   3/22/2013      EUR      74.88
HSBC TRINKAUS            17.500   3/22/2013      EUR      58.58
HSBC TRINKAUS            17.500   3/22/2013      EUR      65.46
HSBC TRINKAUS            17.500   3/22/2013      EUR      56.90
HSBC TRINKAUS            18.000   3/22/2013      EUR      74.29
HSBC TRINKAUS            18.000   3/22/2013      EUR      69.93
HSBC TRINKAUS            18.000   3/22/2013      EUR      66.09
HSBC TRINKAUS            18.500   3/22/2013      EUR      55.92
HSBC TRINKAUS            18.500   3/22/2013      EUR      73.85
HSBC TRINKAUS            18.500   3/22/2013      EUR      69.38
HSBC TRINKAUS            18.500   3/22/2013      EUR      39.60
HSBC TRINKAUS            19.000   3/22/2013      EUR      55.12
HSBC TRINKAUS            19.500   3/22/2013      EUR      71.17
HSBC TRINKAUS            19.500   3/22/2013      EUR      67.58
HSBC TRINKAUS            20.000   3/22/2013      EUR      72.33
HSBC TRINKAUS            20.500   3/22/2013      EUR      56.78
HSBC TRINKAUS            21.000   3/22/2013      EUR      70.74
HSBC TRINKAUS            21.000   3/22/2013      EUR      54.43
HSBC TRINKAUS            21.000   3/22/2013      EUR      70.19
HSBC TRINKAUS            22.000   3/22/2013      EUR      38.33
HSBC TRINKAUS            22.000   3/22/2013      EUR      54.00
HSBC TRINKAUS            22.500   3/22/2013      EUR      67.68
HSBC TRINKAUS            23.000   3/22/2013      EUR      52.08
HSBC TRINKAUS            23.500   3/22/2013      EUR      65.24
HSBC TRINKAUS            24.000   3/22/2013      EUR      61.96
HSBC TRINKAUS            24.000   3/22/2013      EUR      67.46
HSBC TRINKAUS            24.000   3/22/2013      EUR      73.10
HSBC TRINKAUS            26.500   3/22/2013      EUR      61.24
HSBC TRINKAUS            27.000   3/22/2013      EUR      53.26
HSBC TRINKAUS            27.500   3/22/2013      EUR      43.48
HSBC TRINKAUS             6.000   6/28/2013      EUR      74.16
HSBC TRINKAUS             6.500   6/28/2013      EUR      68.24
HSBC TRINKAUS             7.000   6/28/2013      EUR      73.22
HSBC TRINKAUS             8.000   6/28/2013      EUR      49.20
HSBC TRINKAUS             8.000   6/28/2013      EUR      72.27
HSBC TRINKAUS             8.500   6/28/2013      EUR      69.16
HSBC TRINKAUS            10.000   6/28/2013      EUR      73.12
HSBC TRINKAUS            10.000   6/28/2013      EUR      67.56
HSBC TRINKAUS            10.000   6/28/2013      EUR      67.11
HSBC TRINKAUS            10.500   6/28/2013      EUR      46.20
HSBC TRINKAUS            11.000   6/28/2013      EUR      63.23
HSBC TRINKAUS            12.500   6/28/2013      EUR      63.33
HSBC TRINKAUS            13.500   6/28/2013      EUR      61.67
HSBC TRINKAUS            14.000   6/28/2013      EUR      70.50
HSBC TRINKAUS            14.000   6/28/2013      EUR      43.06
HSBC TRINKAUS            14.000   6/28/2013      EUR      61.82
HSBC TRINKAUS            15.500   6/28/2013      EUR      67.79
HSBC TRINKAUS            16.500   6/28/2013      EUR      59.22
HSBC TRINKAUS            16.500   6/28/2013      EUR      41.80
HSBC TRINKAUS            16.500   6/28/2013      EUR      71.08
HSBC TRINKAUS            16.500   6/28/2013      EUR      59.77
HSBC TRINKAUS            16.500   6/28/2013      EUR      67.72
HSBC TRINKAUS            17.000   6/28/2013      EUR      57.46
HSBC TRINKAUS            17.500   6/28/2013      EUR      74.75
HSBC TRINKAUS            17.500   6/28/2013      EUR      71.43
HSBC TRINKAUS            18.000   6/28/2013      EUR      70.95
HSBC TRINKAUS            18.500   6/28/2013      EUR      73.14
HSBC TRINKAUS            18.500   6/28/2013      EUR      57.51
HSBC TRINKAUS            19.000   6/28/2013      EUR      40.97
HSBC TRINKAUS            19.000   6/28/2013      EUR      74.92
HSBC TRINKAUS            19.500   6/28/2013      EUR      71.78
HSBC TRINKAUS            19.500   6/28/2013      EUR      59.74
HSBC TRINKAUS            19.500   6/28/2013      EUR      56.67
HSBC TRINKAUS            19.500   6/28/2013      EUR      71.65
HSBC TRINKAUS            21.000   6/28/2013      EUR      54.87
HSBC TRINKAUS            21.000   6/28/2013      EUR      64.56
HSBC TRINKAUS            21.500   6/28/2013      EUR      68.02
HSBC TRINKAUS            22.500   6/28/2013      EUR      60.02
HSBC TRINKAUS            23.500   6/28/2013      EUR      64.88
LANDESBK BERLIN           5.500  12/23/2013      EUR      72.60
LB BADEN-WUERTT           9.000   7/26/2013      EUR      74.42
LB BADEN-WUERTT           6.000   8/23/2013      EUR      74.40
LB BADEN-WUERTT           7.000   8/23/2013      EUR      72.18
LB BADEN-WUERTT           9.000   8/23/2013      EUR      69.10
LB BADEN-WUERTT          10.000   8/23/2013      EUR      73.11
LB BADEN-WUERTT          10.000   8/23/2013      EUR      71.91
LB BADEN-WUERTT          12.000   8/23/2013      EUR      68.83
LB BADEN-WUERTT          12.000   8/23/2013      EUR      69.40
LB BADEN-WUERTT           7.000   9/27/2013      EUR      74.38
LB BADEN-WUERTT           9.000   9/27/2013      EUR      71.33
LB BADEN-WUERTT          11.000   6/28/2013      EUR      67.25
LB BADEN-WUERTT          11.000   9/27/2013      EUR      70.06
LB BADEN-WUERTT           7.000   6/28/2013      EUR      73.23
LB BADEN-WUERTT           7.500   6/28/2013      EUR      67.52
LB BADEN-WUERTT           7.500   6/28/2013      EUR      72.98
LB BADEN-WUERTT           7.500   6/28/2013      EUR      73.55
LB BADEN-WUERTT           9.000   6/28/2013      EUR      69.23
LB BADEN-WUERTT          10.000   6/28/2013      EUR      71.99
LB BADEN-WUERTT          10.000   6/28/2013      EUR      68.21
LB BADEN-WUERTT          10.000   6/28/2013      EUR      65.70
LB BADEN-WUERTT           5.000  11/23/2012      EUR      49.15
LB BADEN-WUERTT           5.000  11/23/2012      EUR      18.44
LB BADEN-WUERTT           5.000  11/23/2012      EUR      49.68
LB BADEN-WUERTT           5.000  11/23/2012      EUR      70.65
LB BADEN-WUERTT           5.000  11/23/2012      EUR      71.98
LB BADEN-WUERTT           7.500  11/23/2012      EUR      73.69
LB BADEN-WUERTT           7.500  11/23/2012      EUR      41.51
LB BADEN-WUERTT           7.500  11/23/2012      EUR      67.76
LB BADEN-WUERTT           7.500  11/23/2012      EUR      42.64
LB BADEN-WUERTT           7.500  11/23/2012      EUR      64.20
LB BADEN-WUERTT           7.500  11/23/2012      EUR      15.76
LB BADEN-WUERTT           7.500  11/23/2012      EUR      61.12
LB BADEN-WUERTT           7.500  11/23/2012      EUR      63.31
LB BADEN-WUERTT          10.000  11/23/2012      EUR      36.96
LB BADEN-WUERTT          10.000  11/23/2012      EUR      14.49
LB BADEN-WUERTT          10.000  11/23/2012      EUR      58.79
LB BADEN-WUERTT          10.000  11/23/2012      EUR      55.36
LB BADEN-WUERTT          10.000  11/23/2012      EUR      71.19
LB BADEN-WUERTT          10.000  11/23/2012      EUR      69.90
LB BADEN-WUERTT          10.000  11/23/2012      EUR      67.15
LB BADEN-WUERTT          10.000  11/23/2012      EUR      38.06
LB BADEN-WUERTT          10.000  11/23/2012      EUR      56.82
LB BADEN-WUERTT          10.000  11/23/2012      EUR      70.92
LB BADEN-WUERTT          10.000  11/23/2012      EUR      74.57
LB BADEN-WUERTT          10.000  11/23/2012      EUR      56.18
LB BADEN-WUERTT          15.000  11/23/2012      EUR      46.61
LB BADEN-WUERTT           5.000    1/4/2013      EUR      51.63
LB BADEN-WUERTT           5.000    1/4/2013      EUR      38.27
LB BADEN-WUERTT           5.000    1/4/2013      EUR      67.54
LB BADEN-WUERTT           5.000    1/4/2013      EUR      18.70
LB BADEN-WUERTT           5.000    1/4/2013      EUR      57.92
LB BADEN-WUERTT           5.000    1/4/2013      EUR      63.31
LB BADEN-WUERTT           7.500    1/4/2013      EUR      54.39
LB BADEN-WUERTT           7.500    1/4/2013      EUR      65.07
LB BADEN-WUERTT           7.500    1/4/2013      EUR      51.99
LB BADEN-WUERTT           7.500    1/4/2013      EUR      32.90
LB BADEN-WUERTT           7.500    1/4/2013      EUR      58.58
LB BADEN-WUERTT           7.500    1/4/2013      EUR      72.77
LB BADEN-WUERTT           7.500    1/4/2013      EUR      16.46
LB BADEN-WUERTT           7.500    1/4/2013      EUR      59.10
LB BADEN-WUERTT           7.500    1/4/2013      EUR      67.25
LB BADEN-WUERTT          10.000    1/4/2013      EUR      66.61
LB BADEN-WUERTT          10.000    1/4/2013      EUR      30.35
LB BADEN-WUERTT          10.000    1/4/2013      EUR      52.62
LB BADEN-WUERTT          10.000    1/4/2013      EUR      70.66
LB BADEN-WUERTT          10.000    1/4/2013      EUR      15.06
LB BADEN-WUERTT          10.000    1/4/2013      EUR      52.34
LB BADEN-WUERTT          10.000    1/4/2013      EUR      60.85
LB BADEN-WUERTT          10.000    1/4/2013      EUR      49.73
LB BADEN-WUERTT          10.000    1/4/2013      EUR      61.11
LB BADEN-WUERTT          10.000    1/4/2013      EUR      58.93
LB BADEN-WUERTT           5.000   1/25/2013      EUR      74.47
LB BADEN-WUERTT           5.000   1/25/2013      EUR      72.12
LB BADEN-WUERTT           5.000   1/25/2013      EUR      25.04
LB BADEN-WUERTT           7.500   1/25/2013      EUR      22.14
LB BADEN-WUERTT           7.500   1/25/2013      EUR      65.50
LB BADEN-WUERTT           7.500   1/25/2013      EUR      61.75
LB BADEN-WUERTT           7.500   1/25/2013      EUR      67.92
LB BADEN-WUERTT           7.500   1/25/2013      EUR      65.65
LB BADEN-WUERTT          10.000   1/25/2013      EUR      73.79
LB BADEN-WUERTT          10.000   1/25/2013      EUR      57.74
LB BADEN-WUERTT          10.000   1/25/2013      EUR      70.62
LB BADEN-WUERTT          10.000   1/25/2013      EUR      61.42
LB BADEN-WUERTT          10.000   1/25/2013      EUR      55.00
LB BADEN-WUERTT          10.000   1/25/2013      EUR      62.58
LB BADEN-WUERTT          10.000   1/25/2013      EUR      72.60
LB BADEN-WUERTT          10.000   1/25/2013      EUR      20.18
LB BADEN-WUERTT          10.000   1/25/2013      EUR      74.43
LB BADEN-WUERTT           5.000   2/22/2013      EUR      72.06
LB BADEN-WUERTT           7.500   2/22/2013      EUR      62.21
LB BADEN-WUERTT          10.000   2/22/2013      EUR      55.52
LB BADEN-WUERTT          15.000   2/22/2013      EUR      47.17
LB BADEN-WUERTT           8.000   3/22/2013      EUR      68.03
LB BADEN-WUERTT          10.000   3/22/2013      EUR      65.16
LB BADEN-WUERTT          12.000   3/22/2013      EUR      66.23
LB BADEN-WUERTT          15.000   3/22/2013      EUR      74.79
LB BADEN-WUERTT          15.000   3/22/2013      EUR      59.20
LB BADEN-WUERTT           5.000   6/28/2013      EUR      68.83
MACQUARIE STRUCT         13.250    1/2/2013      EUR      67.09
MACQUARIE STRUCT         18.000  12/14/2012      EUR      63.38
Q-CELLS                   6.750  10/21/2015      EUR       1.08
QIMONDA FINANCE           6.750   3/22/2013      USD       4.50
SOLON AG SOLAR            1.375   12/6/2012      EUR       0.58
TAG IMMO AG               6.500  12/10/2015      EUR       9.73
TUI AG                    2.750   3/24/2016      EUR      56.50
VONTOBEL FIN PRO         11.150   3/22/2013      EUR      68.40
VONTOBEL FIN PRO         11.850   3/22/2013      EUR      55.54
VONTOBEL FIN PRO         12.000   3/22/2013      EUR      65.10
VONTOBEL FIN PRO         12.050   3/22/2013      EUR      62.30
VONTOBEL FIN PRO         12.200   3/22/2013      EUR      43.92
VONTOBEL FIN PRO         12.200   3/22/2013      EUR      70.66
VONTOBEL FIN PRO         12.700   3/22/2013      EUR      71.00
VONTOBEL FIN PRO         13.700   3/22/2013      EUR      42.16
VONTOBEL FIN PRO         14.000   3/22/2013      EUR      63.30
VONTOBEL FIN PRO         14.500   3/22/2013      EUR      50.88
VONTOBEL FIN PRO         15.250   3/22/2013      EUR      40.58
VONTOBEL FIN PRO         16.850   3/22/2013      EUR      39.28
VONTOBEL FIN PRO         17.450  12/31/2012      EUR      56.96
VONTOBEL FIN PRO         17.100  12/31/2012      EUR      50.44
VONTOBEL FIN PRO         17.050  12/31/2012      EUR      54.28
VONTOBEL FIN PRO         16.950  12/31/2012      EUR      56.32
VONTOBEL FIN PRO         16.850  12/31/2012      EUR      60.40
VONTOBEL FIN PRO         16.700  12/31/2012      EUR      71.48
VONTOBEL FIN PRO         16.550  12/31/2012      EUR      73.86
VONTOBEL FIN PRO         16.450  12/31/2012      EUR      73.60
VONTOBEL FIN PRO         16.350  12/31/2012      EUR      57.44
VONTOBEL FIN PRO         16.150  12/31/2012      EUR      63.18
VONTOBEL FIN PRO         16.100  12/31/2012      EUR      71.56
VONTOBEL FIN PRO         16.050  12/31/2012      EUR      72.06
VONTOBEL FIN PRO         15.900  12/31/2012      EUR      73.46
VONTOBEL FIN PRO         15.750  12/31/2012      EUR      74.18
VONTOBEL FIN PRO         15.250  12/31/2012      EUR      57.52
VONTOBEL FIN PRO         14.950  12/31/2012      EUR      74.14
VONTOBEL FIN PRO         14.700  12/31/2012      EUR      73.84
VONTOBEL FIN PRO         14.600  12/31/2012      EUR      72.78
VONTOBEL FIN PRO         14.600  12/31/2012      EUR      53.42
VONTOBEL FIN PRO         14.550  12/31/2012      EUR      73.38
VONTOBEL FIN PRO         14.500  12/31/2012      EUR      63.86
VONTOBEL FIN PRO         14.450  12/31/2012      EUR      53.02
VONTOBEL FIN PRO         14.350  12/31/2012      EUR      70.94
VONTOBEL FIN PRO         14.350  12/31/2012      EUR      71.90
VONTOBEL FIN PRO         14.300  12/31/2012      EUR      71.30
VONTOBEL FIN PRO         14.300  12/31/2012      EUR      48.14
VONTOBEL FIN PRO         14.100  12/31/2012      EUR      74.06
VONTOBEL FIN PRO         14.000  12/31/2012      EUR      70.76
VONTOBEL FIN PRO         13.600  12/31/2012      EUR      72.66
VONTOBEL FIN PRO         13.550  12/31/2012      EUR      57.82
VONTOBEL FIN PRO         13.500  12/31/2012      EUR      61.24
VONTOBEL FIN PRO         13.150  12/31/2012      EUR      70.92
VONTOBEL FIN PRO         13.050  12/31/2012      EUR      67.64
VONTOBEL FIN PRO         12.900  12/31/2012      EUR      50.58
VONTOBEL FIN PRO         12.800  12/31/2012      EUR      46.66
VONTOBEL FIN PRO         12.650  12/31/2012      EUR      56.42
VONTOBEL FIN PRO         12.650  12/31/2012      EUR      73.70
VONTOBEL FIN PRO         12.550  12/31/2012      EUR      73.98
VONTOBEL FIN PRO         12.250  12/31/2012      EUR      68.20
VONTOBEL FIN PRO         12.000  12/31/2012      EUR      61.78
VONTOBEL FIN PRO         11.950  12/31/2012      EUR      72.42
VONTOBEL FIN PRO         11.950  12/31/2012      EUR      56.12
VONTOBEL FIN PRO         11.950  12/31/2012      EUR      49.92
VONTOBEL FIN PRO         11.900  12/31/2012      EUR      72.76
VONTOBEL FIN PRO         11.850  12/31/2012      EUR      68.54
VONTOBEL FIN PRO         11.750  12/31/2012      EUR      55.44
VONTOBEL FIN PRO         11.700  12/31/2012      EUR      61.98
VONTOBEL FIN PRO         11.600  12/31/2012      EUR      74.12
VONTOBEL FIN PRO         11.450  12/31/2012      EUR      54.80
VONTOBEL FIN PRO         11.400  12/31/2012      EUR      58.20
VONTOBEL FIN PRO         11.150  12/31/2012      EUR      72.30
VONTOBEL FIN PRO         11.000  12/31/2012      EUR      70.90
VONTOBEL FIN PRO         11.000  12/31/2012      EUR      70.64
VONTOBEL FIN PRO         10.900  12/31/2012      EUR      66.40
VONTOBEL FIN PRO         10.550  12/31/2012      EUR      58.50
VONTOBEL FIN PRO         10.550  12/31/2012      EUR      58.28
VONTOBEL FIN PRO         10.500  12/31/2012      EUR      41.50
VONTOBEL FIN PRO         10.050  12/31/2012      EUR      63.46
VONTOBEL FIN PRO          9.950  12/31/2012      EUR      52.92
VONTOBEL FIN PRO          9.950  12/31/2012      EUR      61.94
VONTOBEL FIN PRO          9.900  12/31/2012      EUR      72.76
VONTOBEL FIN PRO          9.650  12/31/2012      EUR      70.46
VONTOBEL FIN PRO          9.600  12/31/2012      EUR      72.14
VONTOBEL FIN PRO          9.600  12/31/2012      EUR      71.92
VONTOBEL FIN PRO          9.500  12/31/2012      EUR      59.22
VONTOBEL FIN PRO          9.400  12/31/2012      EUR      73.08
VONTOBEL FIN PRO          9.400  12/31/2012      EUR      54.40
VONTOBEL FIN PRO          9.350  12/31/2012      EUR      72.40
VONTOBEL FIN PRO          9.250  12/31/2012      EUR      41.18
VONTOBEL FIN PRO          9.150  12/31/2012      EUR      73.58
VONTOBEL FIN PRO          9.050  12/31/2012      EUR      73.74
VONTOBEL FIN PRO          8.650  12/31/2012      EUR      66.36
VONTOBEL FIN PRO         18.500   3/22/2013      EUR      38.32
VONTOBEL FIN PRO         20.900   3/22/2013      EUR      72.12
VONTOBEL FIN PRO         21.750   3/22/2013      EUR      73.52
VONTOBEL FIN PRO          8.200  12/31/2012      EUR      65.04
VONTOBEL FIN PRO          7.950  12/31/2012      EUR      52.66
VONTOBEL FIN PRO         19.700  12/31/2012      EUR      62.56
VONTOBEL FIN PRO         23.600   3/22/2013      EUR      70.72
VONTOBEL FIN PRO          4.000   6/28/2013      EUR      44.06
VONTOBEL FIN PRO          6.000   6/28/2013      EUR      63.20
VONTOBEL FIN PRO          8.000   6/28/2013      EUR      71.76
VONTOBEL FIN PRO          7.700  12/31/2012      EUR      67.42
VONTOBEL FIN PRO          7.400  12/31/2012      EUR      55.46
VONTOBEL FIN PRO          9.550   6/28/2013      EUR      74.90
VONTOBEL FIN PRO          7.250  12/31/2012      EUR      53.62
VONTOBEL FIN PRO         13.050   6/28/2013      EUR      72.48
VONTOBEL FIN PRO          7.389  11/25/2013      EUR      44.60
VONTOBEL FIN PRO          5.100   4/14/2014      EUR      32.80
VONTOBEL FIN PRO         18.200  12/31/2012      EUR      72.38
VONTOBEL FIN PRO         18.200  12/31/2012      EUR      73.86
VONTOBEL FIN PRO         18.850  12/31/2012      EUR      50.70
VONTOBEL FIN PRO         18.850  12/31/2012      EUR      63.10
VONTOBEL FIN PRO         18.900  12/31/2012      EUR      51.46
VONTOBEL FIN PRO         18.950  12/31/2012      EUR      68.80
VONTOBEL FIN PRO         19.300  12/31/2012      EUR      66.04
VONTOBEL FIN PRO         20.000  12/31/2012      EUR      69.94
VONTOBEL FIN PRO         20.850  12/31/2012      EUR      72.94
VONTOBEL FIN PRO         21.150  12/31/2012      EUR      68.12
VONTOBEL FIN PRO         21.200  12/31/2012      EUR      54.82
VONTOBEL FIN PRO         21.200  12/31/2012      EUR      74.18
VONTOBEL FIN PRO         22.250  12/31/2012      EUR      66.40
VONTOBEL FIN PRO         22.700  12/31/2012      EUR      66.06
VONTOBEL FIN PRO         24.700  12/31/2012      EUR      43.38
VONTOBEL FIN PRO         24.900  12/31/2012      EUR      51.50
VONTOBEL FIN PRO         26.050  12/31/2012      EUR      69.82
VONTOBEL FIN PRO         27.600  12/31/2012      EUR      40.62
VONTOBEL FIN PRO         28.250  12/31/2012      EUR      38.08
VONTOBEL FIN PRO         11.000    2/1/2013      EUR      55.10
VONTOBEL FIN PRO         13.650    3/1/2013      EUR      35.30
VONTOBEL FIN PRO         10.100    3/8/2013      EUR      74.60
VONTOBEL FIN PRO          5.650   3/22/2013      EUR      68.18
VONTOBEL FIN PRO          7.500   3/22/2013      EUR      73.88
VONTOBEL FIN PRO          8.550   3/22/2013      EUR      61.34
VONTOBEL FIN PRO          8.850   3/22/2013      EUR      73.64
VONTOBEL FIN PRO          9.200   3/22/2013      EUR      65.12
VONTOBEL FIN PRO          9.950   3/22/2013      EUR      70.06
VONTOBEL FIN PRO         10.150   3/22/2013      EUR      59.84
VONTOBEL FIN PRO         18.050  12/31/2012      EUR      64.74
VONTOBEL FIN PRO         17.650  12/31/2012      EUR      73.18
VONTOBEL FIN PRO         10.300   3/22/2013      EUR      70.72
VONTOBEL FIN PRO         10.350   3/22/2013      EUR      73.54
VONTOBEL FIN PRO         10.750   3/22/2013      EUR      46.30
WGZ BANK                  8.000  12/28/2012      EUR      59.08
WGZ BANK                  8.000  12/21/2012      EUR      66.08
WGZ BANK                  5.000  12/28/2012      EUR      73.18
WGZ BANK                  6.000  12/28/2012      EUR      67.75
WGZ BANK                  7.000  12/28/2012      EUR      63.10
WGZ BANK                  6.000  12/21/2012      EUR      74.00
WGZ BANK                  7.000  12/21/2012      EUR      68.47

BCV GUERNSEY              8.020    3/1/2013      EUR      56.54
BKB FINANCE              10.950   5/10/2013      CHF      62.57
BKB FINANCE              10.150   9/11/2013      CHF      73.89
BKB FINANCE              13.200   1/31/2013      CHF      50.08
BKB FINANCE               9.450    7/3/2013      CHF      68.52
BKB FINANCE              11.500   3/20/2013      CHF      59.30
BKB FINANCE               8.350   1/14/2013      CHF      54.15
EFG INTL FIN GUR         14.500  11/13/2012      EUR      73.04
EFG INTL FIN GUR         17.000  11/13/2012      EUR      64.12
EFG INTL FIN GUR         12.830  11/19/2012      CHF      70.07
EFG INTL FIN GUR          8.000  11/20/2012      CHF      62.03
EFG INTL FIN GUR          8.300  11/20/2012      CHF      64.99
EFG INTL FIN GUR         11.500  11/20/2012      EUR      55.05
EFG INTL FIN GUR         14.800  11/20/2012      EUR      65.84
EFG INTL FIN GUR          9.250  11/27/2012      CHF      68.70
EFG INTL FIN GUR         11.250  11/27/2012      CHF      64.89
EFG INTL FIN GUR         14.500  11/27/2012      CHF      31.64
EFG INTL FIN GUR         16.000  11/27/2012      EUR      59.21
EFG INTL FIN GUR          9.750   12/3/2012      CHF      72.96
EFG INTL FIN GUR         13.750   12/6/2012      CHF      35.12
EFG INTL FIN GUR          8.500  12/14/2012      CHF      58.17
EFG INTL FIN GUR         14.250  12/14/2012      EUR      66.29
EFG INTL FIN GUR         17.500  12/14/2012      EUR      62.97
EFG INTL FIN GUR          9.300  12/21/2012      CHF      64.50
EFG INTL FIN GUR         10.900  12/21/2012      CHF      64.73
EFG INTL FIN GUR         12.600  12/21/2012      CHF      64.81
EFG INTL FIN GUR          8.830  12/28/2012      USD      57.56
EFG INTL FIN GUR         10.000    1/9/2013      EUR      52.73
EFG INTL FIN GUR          9.000   1/15/2013      CHF      27.36
EFG INTL FIN GUR         10.250   1/15/2013      CHF      23.41
EFG INTL FIN GUR         11.250   1/15/2013      GBP      73.41
EFG INTL FIN GUR         12.500   1/15/2013      CHF      28.91
EFG INTL FIN GUR         13.000   1/15/2013      CHF      74.41
EFG INTL FIN GUR         16.500   1/18/2013      CHF      50.63
EFG INTL FIN GUR          5.800   1/23/2013      CHF      69.35
EFG INTL FIN GUR         19.050   2/20/2013      USD      74.67
EFG INTL FIN GUR         15.000    3/1/2013      CHF      71.34
EFG INTL FIN GUR         10.000    3/6/2013      USD      71.83
EFG INTL FIN GUR         12.250  12/27/2012      GBP      67.82
EFG INTL FIN GUR          8.000    4/2/2013      CHF      63.34
EFG INTL FIN GUR         16.000    4/4/2013      CHF      23.40
EFG INTL FIN GUR          7.530   4/16/2013      EUR      49.58
EFG INTL FIN GUR          7.000   4/19/2013      EUR      55.27
EFG INTL FIN GUR         12.000   4/26/2013      CHF      66.95
EFG INTL FIN GUR          9.500   4/30/2013      EUR      28.64
EFG INTL FIN GUR         14.200    6/7/2013      EUR      71.88
EFG INTL FIN GUR          6.500   8/27/2013      CHF      51.39
EFG INTL FIN GUR          8.400   9/30/2013      CHF      63.25
EFG INTL FIN GUR         19.000   10/3/2013      GBP      74.39
EFG INTL FIN GUR          8.160   4/25/2014      EUR      71.56
EFG INTL FIN GUR          5.850  10/14/2014      CHF      57.06
EFG INTL FIN GUR          6.000  11/12/2012      CHF      56.98
EFG INTL FIN GUR          6.000  11/12/2012      EUR      57.81
EFG INTL FIN GUR         10.500  11/13/2012      CHF      65.60
EFG INTL FIN GUR         10.500  11/13/2012      CHF      65.60
EFG INTL FIN GUR         12.750  11/13/2012      CHF      22.70
EFG INTL FIN GUR         12.750  11/13/2012      CHF      71.49
EFG INTL FIN GUR         13.000  11/13/2012      CHF      22.91
EFG INTL FIN GUR         13.000  11/13/2012      CHF      74.82
EFG INTL FIN GUR         14.000  11/13/2012      USD      23.41
EFG INTL FIN GUR         10.750   3/19/2013      USD      71.27
ZURCHER KANT FIN          9.250   11/9/2012      CHF      62.81
ZURCHER KANT FIN          9.250   11/9/2012      CHF      54.03
ZURCHER KANT FIN         12.670  12/28/2012      CHF      70.24
ZURCHER KANT FIN         11.500   1/24/2013      CHF      59.11
ZURCHER KANT FIN         17.000   2/22/2013      EUR      59.39
ZURCHER KANT FIN         10.128    3/7/2013      CHF      64.97
ZURCHER KANT FIN         13.575   4/10/2013      CHF      74.72
ZURCHER KANT FIN          7.340   4/16/2013      CHF      70.68
ZURCHER KANT FIN         12.500    7/5/2013      CHF      70.56
ZURCHER KANT FIN         10.200   8/23/2013      CHF      67.39
ZURCHER KANT FIN          9.000   9/11/2013      CHF      69.23

KAUPTHING                 0.800   2/15/2011      EUR      26.50

ARCELORMITTAL             7.250    4/1/2014      EUR      21.66

BLT FINANCE BV           12.000   2/10/2015      USD      24.88
EM.TV FINANCE BV          5.250    5/8/2013      EUR       5.89
KPNQWEST NV              10.000   3/15/2012      EUR       0.13
LEHMAN BROS TSY           7.500   9/13/2009      CHF      22.63
LEHMAN BROS TSY           6.600   2/22/2012      EUR      22.63
LEHMAN BROS TSY           7.000   2/15/2012      EUR      22.63
LEHMAN BROS TSY           6.000   2/14/2012      EUR      22.63
LEHMAN BROS TSY           2.500  12/15/2011      GBP      22.63
LEHMAN BROS TSY          12.000    7/4/2011      EUR      22.63
LEHMAN BROS TSY          11.000    7/4/2011      CHF      22.63
LEHMAN BROS TSY          11.000    7/4/2011      USD      22.63
LEHMAN BROS TSY           4.000    1/4/2011      USD      22.63
LEHMAN BROS TSY           8.000  12/31/2010      USD      22.63
LEHMAN BROS TSY           9.300  12/21/2010      EUR      22.63
LEHMAN BROS TSY           9.300  12/21/2010      EUR      22.63
LEHMAN BROS TSY          14.900  11/16/2010      EUR      22.63
LEHMAN BROS TSY           4.000  10/12/2010      USD      22.63
LEHMAN BROS TSY          10.500    8/9/2010      EUR      22.63
LEHMAN BROS TSY           6.000   7/28/2010      EUR      22.63
LEHMAN BROS TSY           6.000   7/28/2010      EUR      22.63
LEHMAN BROS TSY           4.000   5/30/2010      USD      22.63
LEHMAN BROS TSY          11.750    3/1/2010      EUR      22.63
LEHMAN BROS TSY           7.000   2/15/2010      CHF      22.63
LEHMAN BROS TSY           1.750    2/7/2010      EUR      22.63
LEHMAN BROS TSY           8.800  12/27/2009      EUR      22.63
LEHMAN BROS TSY          16.800   8/21/2009      USD      22.63
LEHMAN BROS TSY           8.000    8/3/2009      USD      22.63
LEHMAN BROS TSY           4.500    8/2/2009      USD      22.63
LEHMAN BROS TSY           8.500    7/6/2009      CHF      22.63
LEHMAN BROS TSY          11.000   6/29/2009      EUR      22.63
LEHMAN BROS TSY          10.000   6/17/2009      USD      22.63
LEHMAN BROS TSY           5.750   6/15/2009      CHF      22.63
LEHMAN BROS TSY           5.500   6/15/2009      CHF      22.63
LEHMAN BROS TSY           9.000   6/13/2009      USD      22.63
LEHMAN BROS TSY          15.000    6/4/2009      CHF      22.63
LEHMAN BROS TSY          17.000    6/2/2009      USD      22.63
LEHMAN BROS TSY          13.500    6/2/2009      USD      22.63
LEHMAN BROS TSY          10.000   5/22/2009      USD      22.63
LEHMAN BROS TSY           8.000   5/22/2009      USD      22.63
LEHMAN BROS TSY           8.000   5/22/2009      USD      22.63
LEHMAN BROS TSY          16.200   5/14/2009      USD      22.63
LEHMAN BROS TSY           4.000   4/24/2009      USD      22.63
LEHMAN BROS TSY           3.850   4/24/2009      USD      22.63
LEHMAN BROS TSY           7.000   4/14/2009      EUR      22.63
LEHMAN BROS TSY           9.000   3/17/2009      GBP      22.63
LEHMAN BROS TSY          13.000   2/16/2009      CHF      22.63
LEHMAN BROS TSY          11.000   2/16/2009      CHF      22.63
LEHMAN BROS TSY          10.000   2/16/2009      CHF      22.63
LEHMAN BROS TSY           0.500   2/16/2009      EUR      22.63
LEHMAN BROS TSY           7.750   1/30/2009      EUR      22.63
LEHMAN BROS TSY          13.432    1/8/2009      ILS      22.63
LEHMAN BROS TSY          16.000  12/26/2008      USD      22.63
LEHMAN BROS TSY           7.000  11/28/2008      CHF      22.63
LEHMAN BROS TSY          10.442  11/22/2008      CHF      22.63
LEHMAN BROS TSY          14.100  11/12/2008      USD      22.63
LEHMAN BROS TSY          16.000   11/9/2008      USD      22.63
LEHMAN BROS TSY          13.150  10/30/2008      USD      22.63
LEHMAN BROS TSY          16.000  10/28/2008      USD      22.63
LEHMAN BROS TSY           7.500  10/24/2008      USD      22.63
LEHMAN BROS TSY           6.000  10/24/2008      EUR      22.63
LEHMAN BROS TSY           5.000  10/24/2008      CHF      22.63
LEHMAN BROS TSY           8.000  10/23/2008      USD      22.63
LEHMAN BROS TSY          10.000  10/22/2008      USD      22.63
LEHMAN BROS TSY          16.000   10/8/2008      CHF      22.63
LEHMAN BROS TSY           7.250   10/6/2008      EUR      22.63
LEHMAN BROS TSY          18.250   10/2/2008      USD      22.63
LEHMAN BROS TSY           7.375   9/20/2008      EUR      22.63
LEHMAN BROS TSY          23.300   9/16/2008      USD      22.63
LEHMAN BROS TSY          14.900   9/15/2008      EUR      22.63
LEHMAN BROS TSY           3.000   9/12/2036      JPY       5.50
LEHMAN BROS TSY           6.000  10/30/2012      USD       5.50
LEHMAN BROS TSY           2.500   8/23/2012      GBP      22.63
LEHMAN BROS TSY          13.000   7/25/2012      EUR      22.63
Q-CELLS INTERNAT          1.375   4/30/2012      EUR      26.88
Q-CELLS INTERNAT          5.750   5/26/2014      EUR      26.88
RENEWABLE CORP            6.500    6/4/2014      EUR      61.31
SACYR VALLEHERM           6.500    5/1/2016      EUR      51.72

Rorvik Timber             6.000   6/30/2016      SEK      66.00

BANK JULIUS BAER          8.700    8/5/2013      CHF      60.55
BANK JULIUS BAER         15.000   5/31/2013      USD      69.05
BANK JULIUS BAER         13.000   5/31/2013      USD      70.65
BANK JULIUS BAER         12.000    4/9/2013      CHF      56.05
BANK JULIUS BAER         10.750   3/13/2013      EUR      66.60
BANK JULIUS BAER         17.300    2/1/2013      EUR      54.65
BANK JULIUS BAER          9.700  12/20/2012      CHF      75.00
BANK JULIUS BAER         11.500   2/20/2013      CHF      47.15
BANK JULIUS BAER         12.200   12/5/2012      EUR      54.40
CLARIDEN LEU NAS          0.000   6/10/2014      CHF      62.19
CLARIDEN LEU NAS          0.000   6/10/2014      CHF      62.13
CLARIDEN LEU NAS          0.000   5/26/2014      CHF      65.30
CLARIDEN LEU NAS          0.000   5/13/2014      CHF      63.03
CLARIDEN LEU NAS          0.000   2/24/2014      CHF      55.39
CLARIDEN LEU NAS          0.000   2/11/2014      CHF      54.50
CLARIDEN LEU NAS         18.400  12/20/2013      EUR      74.64
CLARIDEN LEU NAS          0.000  11/26/2013      CHF      64.17
CLARIDEN LEU NAS          4.500   8/13/2014      CHF      48.74
CLARIDEN LEU NAS         16.500   9/23/2013      USD      57.03
CLARIDEN LEU NAS          0.000   9/23/2013      CHF      50.04
CLARIDEN LEU NAS          3.250   9/16/2013      CHF      49.05
CLARIDEN LEU NAS          7.500  11/13/2012      CHF      58.71
CLARIDEN LEU NAS          7.250  11/13/2012      CHF      74.60
CLARIDEN LEU NAS         10.250  11/12/2012      CHF      73.60
CLARIDEN LEU NAS          0.000   8/27/2014      CHF      55.45
CLARIDEN LEU NAS          0.000   9/10/2014      CHF      51.16
CLARIDEN LEU NAS          0.000  10/15/2014      CHF      57.48
CLARIDEN LEU NAS          5.250    8/6/2014      CHF      51.70
CLARIDEN LEU NAS          7.000   7/22/2013      CHF      72.18
CLARIDEN LEU NAS         10.000   6/10/2013      CHF      70.08
CLARIDEN LEU NAS          0.000   5/31/2013      CHF      55.87
CLARIDEN LEU NAS          6.500   4/26/2013      CHF      58.21
CLARIDEN LEU NAS          0.000   3/25/2013      CHF      59.57
CLARIDEN LEU NAS          0.000   3/18/2013      CHF      74.71
CLARIDEN LEU NAS         12.500    3/1/2013      USD      74.21
CLARIDEN LEU NAS          9.000   2/14/2013      CHF      66.37
CLARIDEN LEU NAS         11.500   2/13/2013      EUR      57.40
CLARIDEN LEU NAS          0.000   1/24/2013      CHF      66.96
CLARIDEN LEU NAS          8.750   1/15/2013      CHF      68.73
CLARIDEN LEU NAS          8.250  12/17/2012      CHF      61.30
CLARIDEN LEU NAS          0.000  12/17/2012      EUR      67.37
CLARIDEN LEU NAS         12.500  12/14/2012      EUR      72.83
CLARIDEN LEU NAS          0.000  12/14/2012      CHF      36.53
CLARIDEN LEU NAS         12.000  11/23/2012      CHF      47.83
CLARIDEN LEU NAS          8.000  11/20/2012      CHF      74.87
CLARIDEN LEU NAS          7.125  11/19/2012      CHF      58.17
CLARIDEN LEU NAS          7.250  11/16/2012      CHF      58.79
CREDIT SUISSE LD          8.900   3/25/2013      EUR      57.79
CREDIT SUISSE LD         10.500    9/9/2013      CHF      66.05
S-AIR GROUP               0.125    7/7/2005      CHF      10.63
SARASIN CI LTD            8.000   4/27/2015      CHF      68.67
SARASIN/GUERNSEY         13.600   2/17/2014      CHF      71.51
SARASIN/GUERNSEY         13.200   1/23/2013      EUR      72.52
SARASIN/GUERNSEY         15.200  12/12/2012      EUR      73.12
UBS AG                   11.870   8/13/2013      USD       4.68
UBS AG                    9.600   8/26/2013      USD      15.21
UBS AG                   10.200   9/20/2013      EUR      61.15
UBS AG                   12.900   9/20/2013      EUR      57.98
UBS AG                   15.900   9/20/2013      EUR      55.99
UBS AG                   17.000   9/27/2013      EUR      73.19
UBS AG                   17.750   9/27/2013      EUR      73.50
UBS AG                   18.500   9/27/2013      EUR      71.56
UBS AG                   19.750   9/27/2013      EUR      74.84
UBS AG                   20.000   9/27/2013      EUR      70.19
UBS AG                   20.500   9/27/2013      EUR      74.87
UBS AG                   20.500   9/27/2013      EUR      71.43
UBS AG                   21.750   9/27/2013      EUR      72.53
UBS AG                   22.000   9/27/2013      EUR      71.57
UBS AG                   22.500   9/27/2013      EUR      70.55
UBS AG                   22.750   9/27/2013      EUR      67.91
UBS AG                   23.000   9/27/2013      EUR      72.72
UBS AG                   23.250   9/27/2013      EUR      68.81
UBS AG                   23.250   9/27/2013      EUR      68.35
UBS AG                   24.000   9/27/2013      EUR      69.47
UBS AG                   24.750   9/27/2013      EUR      65.71
UBS AG                    8.060   10/3/2013      USD      19.75
UBS AG                   13.570  11/21/2013      USD      16.25
UBS AG                    6.980  11/27/2013      USD      34.85
UBS AG                   17.000    1/3/2014      EUR      74.48
UBS AG                   17.500    1/3/2014      EUR      73.41
UBS AG                   18.250    1/3/2014      EUR      73.31
UBS AG                   18.250    1/3/2014      EUR      74.28
UBS AG                   19.500    1/3/2014      EUR      73.10
UBS AG                   20.000    1/3/2014      EUR      74.53
UBS AG                   20.500    1/3/2014      EUR      71.30
UBS AG                   20.750    1/3/2014      EUR      71.59
UBS AG                   21.000    1/3/2014      EUR      72.44
UBS AG                   22.250    1/3/2014      EUR      74.19
UBS AG                   23.000    1/3/2014      EUR      71.55
UBS AG                   23.250    1/3/2014      EUR      70.29
UBS AG                   23.250    1/3/2014      EUR      70.57
UBS AG                   24.000    1/3/2014      EUR      72.95
UBS AG                   24.250    1/3/2014      EUR      68.40
UBS AG                   24.250    1/3/2014      EUR      70.18
UBS AG                    6.440   5/28/2014      USD      51.67
UBS AG                    3.870   6/17/2014      USD      38.08
UBS AG                    6.040   8/29/2014      USD      35.22
UBS AG                    7.780   8/29/2014      USD      20.85
UBS AG                   11.260  11/12/2012      EUR      47.13
UBS AG                   11.660  11/12/2012      EUR      34.35
UBS AG                   13.120  11/12/2012      EUR      68.36
UBS AG                   13.560  11/12/2012      EUR      36.51
UBS AG                   13.600  11/12/2012      EUR      56.96
UBS AG                   13.000  11/23/2012      USD      62.55
UBS AG                    8.150  12/21/2012      EUR      72.14
UBS AG                    8.250  12/21/2012      EUR      74.88
UBS AG                    8.270  12/21/2012      EUR      74.19
UBS AG                    8.990  12/21/2012      EUR      72.49
UBS AG                    9.000  12/21/2012      EUR      69.13
UBS AG                    9.150  12/21/2012      EUR      71.84
UBS AG                    9.450  12/21/2012      EUR      74.42
UBS AG                    9.730  12/21/2012      EUR      70.24
UBS AG                    9.890  12/21/2012      EUR      66.37
UBS AG                   10.060  12/21/2012      EUR      72.98
UBS AG                   10.060  12/21/2012      EUR      69.64
UBS AG                   10.160  12/21/2012      EUR      73.41
UBS AG                   10.490  12/21/2012      EUR      68.12
UBS AG                   10.690  12/21/2012      EUR      71.60
UBS AG                   10.810  12/21/2012      EUR      63.85
UBS AG                   11.000  12/21/2012      EUR      67.59
UBS AG                   11.260  12/21/2012      EUR      66.14
UBS AG                   11.270  12/21/2012      EUR      70.63
UBS AG                   11.330  12/21/2012      EUR      70.28
UBS AG                   11.770  12/21/2012      EUR      61.53
UBS AG                   11.970  12/21/2012      EUR      65.67
UBS AG                   11.980  12/21/2012      EUR      69.02
UBS AG                   12.020  12/21/2012      EUR      64.27
UBS AG                   12.200  12/21/2012      EUR      56.09
UBS AG                   12.400  12/21/2012      EUR      68.07
UBS AG                   12.760  12/21/2012      EUR      59.39
UBS AG                   12.800  12/21/2012      EUR      62.51
UBS AG                   12.970  12/21/2012      EUR      63.87
UBS AG                   13.320  12/21/2012      EUR      66.64
UBS AG                   13.560  12/21/2012      EUR      65.71
UBS AG                   13.570  12/21/2012      EUR      60.85
UBS AG                   13.770  12/21/2012      EUR      57.41
UBS AG                   13.980  12/21/2012      EUR      62.18
UBS AG                   14.350  12/21/2012      EUR      59.29
UBS AG                   14.690  12/21/2012      EUR      64.44
UBS AG                   14.740  12/21/2012      EUR      63.53
UBS AG                   14.810  12/21/2012      EUR      55.58
UBS AG                   15.000  12/21/2012      EUR      60.59
UBS AG                   15.130  12/21/2012      EUR      57.81
UBS AG                   15.860  12/21/2012      EUR      53.88
UBS AG                   15.920  12/21/2012      EUR      56.41
UBS AG                   15.930  12/21/2012      EUR      61.51
UBS AG                   16.030  12/21/2012      EUR      59.10
UBS AG                   16.600  12/21/2012      EUR      50.18
UBS AG                   16.710  12/21/2012      EUR      55.09
UBS AG                   16.930  12/21/2012      EUR      52.30
UBS AG                   17.070  12/21/2012      EUR      57.69
UBS AG                   17.500  12/21/2012      EUR      53.84
UBS AG                   18.000  12/21/2012      EUR      50.83
UBS AG                   19.090  12/21/2012      EUR      51.52
UBS AG                   10.770    1/2/2013      USD      38.33
UBS AG                   13.030    1/4/2013      EUR      73.40
UBS AG                   13.630    1/4/2013      EUR      71.63
UBS AG                   14.230    1/4/2013      EUR      69.95
UBS AG                   14.820    1/4/2013      EUR      68.36
UBS AG                   15.460    1/4/2013      EUR      74.82
UBS AG                   15.990    1/4/2013      EUR      65.39
UBS AG                   16.500    1/4/2013      EUR      73.32
UBS AG                   17.000    1/4/2013      EUR      73.98
UBS AG                   17.150    1/4/2013      EUR      62.69
UBS AG                   17.180    1/4/2013      EUR      74.58
UBS AG                   18.000    1/4/2013      EUR      73.54
UBS AG                   18.300    1/4/2013      EUR      60.23
UBS AG                   19.440    1/4/2013      EUR      57.99
UBS AG                   19.750    1/4/2013      EUR      69.92
UBS AG                   20.500    1/4/2013      EUR      70.21
UBS AG                   20.570    1/4/2013      EUR      55.94
UBS AG                   21.700    1/4/2013      EUR      54.05
UBS AG                   21.750    1/4/2013      EUR      69.65
UBS AG                   23.750    1/4/2013      EUR      66.55
UBS AG                   11.020   1/25/2013      EUR      67.05
UBS AG                   12.010   1/25/2013      EUR      65.34
UBS AG                   14.070   1/25/2013      EUR      62.22
UBS AG                   16.200   1/25/2013      EUR      74.54
UBS AG                    8.620    2/1/2013      USD      14.04
UBS AG                    8.980   2/22/2013      EUR      72.86
UBS AG                   10.590   2/22/2013      EUR      69.90
UBS AG                   10.960   2/22/2013      EUR      67.35
UBS AG                   13.070   2/22/2013      EUR      63.96
UBS AG                   13.660   2/22/2013      EUR      61.23
UBS AG                   13.940   2/22/2013      EUR      73.02
UBS AG                   15.800   2/22/2013      EUR      67.24
UBS AG                    8.480    3/7/2013      CHF      58.00
UBS AG                   10.000    3/7/2013      USD      72.30
UBS AG                   12.250    3/7/2013      CHF      59.20
UBS AG                    9.000   3/22/2013      USD      11.16
UBS AG                    9.850   3/22/2013      USD      19.75
UBS AG                   16.500    4/2/2013      EUR      72.16
UBS AG                   17.250    4/2/2013      EUR      72.45
UBS AG                   18.000    4/2/2013      EUR      73.44
UBS AG                   19.750    4/2/2013      EUR      69.63
UBS AG                   21.250    4/2/2013      EUR      69.05
UBS AG                   21.500    4/2/2013      EUR      73.98
UBS AG                   21.500    4/2/2013      EUR      73.88
UBS AG                   22.250    4/2/2013      EUR      67.19
UBS AG                   22.250    4/2/2013      EUR      69.43
UBS AG                   24.250    4/2/2013      EUR      65.24
UBS AG                   24.750    4/2/2013      EUR      68.24
UBS AG                   10.860    4/4/2013      USD      37.21
UBS AG                    9.650   4/11/2013      USD      27.17
UBS AG                    9.930   4/11/2013      USD      24.77
UBS AG                   11.250   4/11/2013      USD      24.39
UBS AG                   10.170   4/26/2013      EUR      67.84
UBS AG                   10.970   4/26/2013      EUR      66.50
UBS AG                   12.610   4/26/2013      EUR      64.06
UBS AG                    7.900   4/30/2013      USD      33.75
UBS AG                    9.830   5/13/2013      USD      30.07
UBS AG                    8.000   5/24/2013      USD      63.90
UBS AG                   11.670   5/31/2013      USD      35.12
UBS AG                   12.780    6/7/2013      CHF      62.60
UBS AG                   16.410    6/7/2013      CHF      64.70
UBS AG                    9.330   6/14/2013      USD      22.00
UBS AG                   11.060   6/14/2013      USD      28.17
UBS AG                    6.770   6/21/2013      USD      10.43
UBS AG                    7.120   6/26/2013      USD      29.83
UBS AG                   15.250   6/28/2013      EUR      74.98
UBS AG                   17.000   6/28/2013      EUR      74.05
UBS AG                   17.250   6/28/2013      EUR      72.59
UBS AG                   19.250   6/28/2013      EUR      70.54
UBS AG                   19.500   6/28/2013      EUR      70.28
UBS AG                   20.250   6/28/2013      EUR      74.82
UBS AG                   20.500   6/28/2013      EUR      70.91
UBS AG                   21.000   6/28/2013      EUR      68.62
UBS AG                   22.000   6/28/2013      EUR      71.86
UBS AG                   22.500   6/28/2013      EUR      66.83
UBS AG                   23.000   6/28/2013      EUR      67.15
UBS AG                   23.500   6/28/2013      EUR      71.72
UBS AG                   24.000   6/28/2013      EUR      68.94
UBS AG                   24.500   6/28/2013      EUR      67.97
UBS AG                   11.450    7/1/2013      USD      27.96
UBS AG                    6.100   7/24/2013      USD      30.07
UBS AG                    8.640    8/1/2013      USD      27.87
UBS AG                   13.120    8/5/2013      USD       4.62
UBS AG                    0.500   4/27/2015      CHF      52.50
UBS AG                    6.070  11/12/2012      EUR      65.82
UBS AG                    8.370  11/12/2012      EUR      59.26
UBS AG                    8.590  11/12/2012      EUR      53.53
UBS AG                    9.020  11/12/2012      EUR      43.76
UBS AG                    9.650  11/12/2012      EUR      37.64
UBS AG                   10.020  11/12/2012      EUR      71.72
UBS AG                   10.930  11/12/2012      EUR      64.23
BARCLAYS BK PLC          11.000   6/28/2013      EUR      43.13
BARCLAYS BK PLC          11.000   6/28/2013      EUR      74.83
BARCLAYS BK PLC          10.750   3/22/2013      EUR      41.06
BARCLAYS BK PLC          10.000   3/22/2013      EUR      42.44
BARCLAYS BK PLC           6.000    1/2/2013      EUR      50.37
BARCLAYS BK PLC           8.000   6/28/2013      EUR      47.66
ESSAR ENERGY              4.250    2/1/2016      USD      72.62
MAX PETROLEUM             6.750    9/8/2013      USD      40.36


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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