TCREUR_Public/121227.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

          Thursday, December 27, 2012, Vol. 13, No. 256



BANK TECHNIQUE: Fitch's Rating Upgrade Hinges on Recapitalization


ELRO GROUP: Edeka Forms New Company Following Takeover
GERMAN RESIDENTIAL: Fitch Affirms 'BBsf' Rating on Class F Notes
GERMAN RESIDENTIAL: Moody's Hikes Ratings on Two Notes to 'Ba3'
KIRCHMEDIA GMBH: Munich Prosecutors Search Deutsch Bank Offices


HUNGARIAN EXPORT: Fitch Affirms 'BB+' Issuer Default Rating


IRISH BANK: Fitch Withdraws 'BB-/B' Issuer Default Ratings
MADIGAN PUB: LVA Chairman Steps Down Following Receivership
WILLOW NO.2: Moody's Confirms 'Caa2' Rating on Series 39 Notes
* IRELAND: Nearly 1,000 Jobs Saved Through Examinership Process


BANCA MONTE: Fitch Downgrades Viability Rating to 'b'


SAMRUK-ENERGY JSC: S&P Affirms 'BB+' Rating on US$500-Mil. Notes


SIA EECF: Fitch Affirms 'B' Rating on Secured Revolver Facility


ARCELORMITTAL SA: Fitch Cuts LT Issuer Default Rating to 'BB+'
INTERCONTINENTAL CDO: S&P Cuts Rating on Class C Notes to 'B+'


* MUNCIPALITY OF SKOPJE: S&P Affirms 'BB' Issuer Credit Rating


HYVA GLOBAL: Moody's Changes Outlook on 'B2' CFR to Negative


BANCO INTERNACIONAL: Fitch Affirms 'BB/B' IDRs; Outlook Negative


GARANTI BANK: Fitch Lifts Issuer Default Rating From 'BB+'
* ROMANIA: Larger Companies Went Bust in 2012


ABSOLUT BANK: Fitch Puts RUB5-Bil. Bonds on Rating Watch Negative
INT'L INDUSTRIAL: Agency Has Right to Sell Pugachyov's Villa
* CHUVASHIA REPUBLIC: Moody's Assigns First-Time 'Ba2' Rating


BANCO ESPANOL: Moody's Reviews 'D' Standalone BFSR for Upgrade
* SPAIN: Fitch Puts Long-Term IDRs on Four Banks on Watch Neg.

U N I T E D   K I N G D O M

ATRAVERDA: In Administration; 44 Jobs at Risk
BROADGATE FINANCING: S&P Raises Rating on Class D Notes From BB-
DECO 2005: S&P Lowers Rating on Class H Notes to 'CCC-'
EXPRO HOLDINGS: Moody's Affirms 'Caa1' Corp. Family Rating

* UK: More Retailers to Face Insolvency, Begbies Traynor Says
* Cable Mulls Insolvency Process Overhaul After Comet's Collapse


* Upcoming Meetings, Conferences and Seminars



BANK TECHNIQUE: Fitch's Rating Upgrade Hinges on Recapitalization
Fitch Ratings says that Azerbaijan-based Bank Technique's (BT,
former Technikabank) ratings could be upgraded if the bank
successfully carries out measures to strengthen its
recapitalization.  However, significant execution risk attached
to the plans and their limited scope mean that an upgrade is
still uncertain and, if it takes place, would likely be only
moderate. BT's 'CC' Long-term Issuer Default Rating (IDR) and its
'f' Viability Rating currently reflect the sharp deterioration of
the bank's liquidity position and erosion of its capital in Q212
following the arrest of one of the bank's key shareholders.

BT's controlling shareholder World Wines, which currently holds a
75% stake has since installed a new management team which is
putting in place measures to improve the bank's solvency.
Firstly, World Wines and Kazimir Investment Caspian Fund (KIFC, a
10% stake) are expected to inject AZN16 million into BT's equity
in Q113.  Secondly, TB has informed Fitch that it has agreed to
dispose of some repossessed collateral on its impaired loans,
potentially resulting in a net gain of AZN65 million.  An
additional positive capital effect of AZN10 million could be
achieved if BT sells its subsidiaries (including a leasing

Fitch views these plans as realistic but notes that the total
capital effect of all these measures is AZN91 million which is
slightly below the AZN112 million of capital which Fitch
calculates BT required at end-Q312 to comply with the minimum 12%
regulatory capital requirement.  However, management also plans
to deleverage its balance sheet by refinancing some of its
largest loans with other banks, and thereby significantly
reducing risk weighted assets.  Management expects that if it
implements all of these measures, the bank will be in compliance
with local capital adequacy regulations by end-Q113.

Fitch plans to conduct a review of the bank's ratings once the
success of the above measures can be assessed, probably in Q113.
Positive rating actions are possible if the bank strengthens its
capital and is once more viewed by the agency as a viable entity.
Further delays and uncertainties with the recapitalization could
result in an affirmation of BT's 'CC' Long-term IDR.  The IDRs
could be downgraded to default level if BT's liquidity position
weakens further without the bank receiving external support from
its shareholders or the central bank, rendering it unable to
service its obligations.


ELRO GROUP: Edeka Forms New Company Following Takeover
Fresh Plaza, citing German newspaper 'Die Welt', reports that
after taking over four outlets from former juice manufacturer
Elro in November, German retailer Edeka has now incorporated
logistical company Elro-Trans.

According to Fresh Plaza, a total of 190 jobs have been saved,
including 20 at Elro-Trans.  Edeka also purchased two production
locations: an organic fruit company and an apple factory, Fresh
Plaza discloses.

The Elro Group, with 350 employers and an annual turnover of
EUR150 million, declared bankruptcy in early September, Fresh
Plaza recounts.  According to liquidator Berthold Brinkmann, some
600 creditors have filed claims amounting to over EUR100 million,
Fresh Plaza notes.

GERMAN RESIDENTIAL: Fitch Affirms 'BBsf' Rating on Class F Notes
Fitch Ratings has affirmed German Residential Asset Note
Distributor plc's (GRAND) notes, as follows:

  -- EUR2,562.5m class A (XS0260141584) affirmed at 'AAsf';
     Outlook Negative

  -- EUR342.2m class B (XS0260142632) affirmed at 'AA-sf';
     Outlook Negative

  -- EUR701.4m class C (XS0260142988) affirmed at 'Asf'; Outlook

  -- EUR133.0m class C Treasury Notes affirmed at 'Asf'; Outlook

  -- EUR460.4m class D (XS0260143101) affirmed at 'BBBsf';
     Outlook Negative

  -- EUR98.9m class E (XS0260143283) affirmed at 'BB+sf'; Outlook

  -- EUR159.9m class F (XS0260935035) affirmed at 'BBsf'; Outlook

The affirmation reflects the ratification of the English Scheme
of Arrangement that allows the loans to be extended to 2018 from
2013 and the notes' legal final maturity to 2021 from 2016.  The
new and amended transaction documents were signed on December 21,
2012; equity injection by the sponsor as well as the conversion
into subordinated loans of certain notes held by its affiliates
will occur on the January 2013 interest payment date.

Fitch believes the amendments, which are designed so that the
loan is substantially repaid over five years, have a neutral to
positive impact on the transaction.  The equity injection of
EUR504 million is a positive signal for the sponsorship of the
assets.  Nevertheless, the Negative Outlooks continue to reflect
uncertainty about the sponsor's ability to meet its annual
amortization targets.  In order to meet its business plan, the
sponsor will have to successfully split the largest portfolio,
McKinley, over this period.

Success with the amortization targets should gradually relieve
downwards pressure on the ratings, and increase the likelihood of
a revision of the Outlook to Stable as the sponsor's flexibility
in refinancing its various subsidiary borrowers grows.  Fitch
bases its views on credit quality on the following

Following the amendments, although the tail period (between the
maturity of the loans and the notes) will remain relatively short
(three years), the refinancing strategy ahead of loan maturity
helps offset the limited time available for a successful workout,
if required.

Four amortization targets (year 1: EUR1,000 million; year 2:
EUR700 million; year 3 and 4: EUR650 million each) will be
defined.  Upon failure to comply, a "global event of default"
would arise under the underlying loan.  (The only exception would
be if the sponsor is subject of an IPO process, which would
entitle it to a one-year waiver of the amortization target,
provided the target is not missed by more than 50%.)

As such, there is continuous pressure on the sponsor to secure
refinancing alternatives and reduce the outstanding debt size.
If successful, this will significantly decrease balloon risk,
with the debt balance at the end of the extended loans maturity
scheduled to be EUR843 million, down from the current balance of
EUR4,325 million.  Balloon risk was the driver of the downgrade
in April 2012, as well as the Negative Outlooks assigned to the

The amended definition of the allocated loan amount (ALA) allows
both pre- and repayments to decrease it.  In particular, this
should make partial refinancing easier for the borrower to
execute, by allowing it to count past debt repayments when
calculating how much debt is to be repaid in order to release
collateral.  A safeguard has been introduced alongside this
provision to allow noteholders to claw back subsequent gains on
sale or from more favorable refinancing carried out in the 12
months following the release of borrowers.

The planned break-up of the largest borrowing entity (McKinley)
should also make refinancing more manageable. While it remains a
challenge to secure large-ticket funding in the current market,
especially given the other large multifamily loans maturing in
the next year or so, the proposed structure is expected to
provide a stronger framework in which to do so.  With respect to
asset sales -- another means of meeting the amortization targets
-- the ALA mechanism will be strengthened by restricting sales
below 90% of the most recent valuation.

The proposed application of proceeds from refinancings and
disposals is designed to decrease the global loan-to-value ratio
(LTV).  Proceeds are first applied to reducing the indebtedness
of the affected borrower and then towards the borrower with the
highest LTV or the lowest interest coverage ratio.  Excess cash
will be trapped to help meet the amortization targets.  Fitch
considers the portfolio well-managed, and the cash trap a
valuable feature.

Surplus cash will be used first to fill a refinancing account up
to EUR100 million and second to amortize notes pro-rata.  If the
notes amortize to EUR2,400 million and the global LTV decreases
to 57.5% (provided that no loan events of default are applicable
and no amortization targets unmet), the refinancing account
target will decrease to EUR50 million, the borrower can use up to
EUR25 million to cover value enhancing expenditure, and 50% or
more of excess cash would have to be used to amortie the notes
pro-rata.  Following an IPO of the sponsor, provided the
amortization target of EUR2,400 million and the global LTV target
of 57.5% are met, a separate account earmarked for possible
dividend payments will be filled up to a maximum EUR112.5 million
p.a. pro rata under certain conditions.

The amended structure factors in some cash withdrawals to cover
restructuring and collateral modernization costs.  During the
first year, the sponsor can withdraw EUR18m from free cash flow.
In the following years, the same proportion of cash relative to
the then remaining market value can be drawn to fund
modernization works.  Additionally, EUR37 million of
restructuring costs as well as EUR5 million needed to finalize
the break-up of the previously mentioned largest borrower group
are to be covered from rental income.

The transaction will be hedged against interest rate risk using a
combination of an interest rate swap and cap on a schedule based
on the aforementioned amortization targets.  Swaps entered into
at 2006 issuance of the transaction, which run until the original
scheduled maturity in July 2013, will be adjusted to a lower base
rate for the remaining swap term.  This is to enable payment of
the new higher margin on the notes from cash flow generated by
the collateral.  Related swap modification costs have been taken
into account in Fitch's analysis.  If the amortization targets
are not met, the notes will become under-hedged, and exposed to
some interest rate risk.  Fitch has taken this into consideration
in its analysis by assuming rates rise in this event.

The liquidity facility will be extended to reflect the new legal
final maturity of the notes, while its committed balance will be
reduced to 4.85% of the principal of the outstanding notes (from
6.45%).  As in the original liquidity facility agreement, limits
for each class of notes (provided it is not senior) are in place.
Due to stronger interest coverage and a lower interest rate
environment than at closing, the new liquidity facility is seen
as sufficient by Fitch.

The transaction account structure includes a rental account with
a bank that does not meet the eligibility standards under Fitch's
counterparty criteria.  Moreover, the transaction documentation
does not provide for replacement of the rental account bank in
case of bank downgrade (which also applied at closing).  In its
analysis, Fitch has assumed a commingling loss of EUR75 million
of cash on deposit to test for bank default risk.

As part of the transaction amendments, definitions for
extraordinary resolutions and written resolutions (both passed by
three-quarters of the vote) will be included into the transaction
documentation.  Accordingly, any further amendments to the
transaction after this proposed restructuring are expected to be
decided through an extraordinary resolution.

GERMAN RESIDENTIAL: Moody's Hikes Ratings on Two Notes to 'Ba3'
Moody's Investors Service has upgraded the following classes of
CMBS Notes issued by German Residential Asset Note Distributor
p.l.c. (amounts reflect initial outstandings):

    EUR577M Class D Notes, Upgraded to Ba1 (sf); previously on
    Dec 21, 2012 Downgraded to Ca (sf) and on Sep 22, 2011,
    Downgraded to Ba3 (sf)

    EUR133M Class E Notes, Upgraded to Ba2 (sf); previously on
    Dec 21, 2012 Downgraded to C (sf) and on Sep 22, 2011,
    Downgraded to B1 (sf)

    EUR200M Class F Notes, Upgraded to Ba3 (sf); previously on
    Dec 21, 2012 Downgraded to C (sf) and on Sep 22, 2011,
    Downgraded to B2 (sf)

    EUR42M First Further Class D Notes, Upgraded to Ba1 (sf);
    previously on Dec 21, 2012 Downgraded to Ca (sf) and on
    Sep 22, 2011, Downgraded to Ba3 (sf)

    EUR15M First Further Class F Notes, Upgraded to Ba3 (sf);
    previously on Dec 21, 2012 Downgraded to C (sf) and on Sep
    22, 2011, Downgraded to B2 (sf)

The upgraded ratings address the expected loss posed to investors
by the amended legal final maturity.

Ratings Rationale

The rating action reflects the restructuring of the transaction
that Moody's views as credit positive, as described in its press
release dated July 18, 2012.

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

Moody's analysis reflects a forward-looking view of the likely
range of collateral performance over the medium term. From time
to time, Moody's may, if warranted, change these expectations.
Performance that falls outside an acceptable range of the key
parameters may indicate that the collateral's credit quality is
stronger or weaker than Moody's had anticipated during the
current review. Even so, deviation from the expected range will
not necessarily result in a rating action. There may be
mitigating or offsetting factors to an improvement or decline in
collateral performance, such as increased subordination levels
due to amortization and loan re- prepayments or a decline in
subordination due to realized losses.

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

Transaction Overview

The transaction follows the principles of a secured loan
structure. The Issuer used the issuance proceeds of each class of
Notes to purchase REF Notes (equivalent to loans) from 31 REF
Note Issuers (equivalent to borrowers) in a corresponding
aggregate amount. Despite the 31 individual REF Note Issuers and
the fact that the security structure does not provide for cross-
collateralization between the REF Note Issuers, the structure is
effectively a single borrower deal. In addition to the interest
payment obligations with respect to the REF Notes, each REF Note
Issuer has also entered into a global facility agreement, in
which global LTV targets are defined that have to be met by the
borrower group as a whole. Two holding companies, both
subsidiaries of DAIG that ultimately own each REF Note Issuer and
their general partners, guarantee the obligations under the
global facility agreement.

Restructuring Analysis

Moody's views the restructuring as overall credit positive.

The default probability decreases mainly due to the deleveraging
of the portfolio as a consequence of equity injection and lower
interest rates. Moody's determined a low risk of cash flow
shortfall even if the refinancing fell behind the sponsor's
business plan and the unhedged amount of debt increased.

The restructuring effectively staggers refinancing risk over the
new loan term due to the annual amortization targets and the
bullet repayment at the amended loan maturity date. Moody's
determined the refinancing default probability in the medium/
high range (25-50%) based on the expected leverage and the size
of the sub portfolios and the total issuance.

Moody's has also reviewed its value estimate of the portfolio and
kept it at the same level as in its last review in 2011. Moody's
loan-to-value ratio will decrease to approximately 65% after the
deleveraging of the transaction as part of the restructuring.

The pro-rata allocation of principal proceeds to the notes is a
credit negative to the senior noteholders. The allocation rule
causes senior noteholders to be exposed to repayment risk until
the whole securitized debt amount is redeemed. In contrast, a
sequential allocation of principal proceeds in a default scenario
absent of the restructuring would ensure that senior noteholders
are repaid first. Hence junior noteholders benefit more from the
proposed restructuring than senior notes.

Moody's has determined that the new liquidity facility
arrangements including the reduced liquidity facility amount in
connection with the profile of the interest rate hedges is weaker
compared to the current arrangements. Especially in scenarios of
delayed refinancings and an increase of unhedged debt amounts due
to the interest rate hedge profile the liquidity facility amount
could become tight to cover cash flow shortfalls in default

Delayed refinancings could lead to an event of default under the
loans if the amortization targets are not met which could
potentially result in a borrower insolvency and a stoppage of
payments to the issuer. The liquidity facility would need to
cover the subsequent cash flow shortfall. Relevant variables in
such a scenario are the interest rate environment and the portion
of the unhedged debt amount. A loan default might not affect the
ultimate repayment of the senior notes due to credit enhancement,
but in such a scenario the continuing timely payment of interest
through liquidity drawings could be at risk.

The weaker liquidity arrangements are commensurate with the
current rating levels but could become a constraining factor for
potential upgrades for performance reasons.

Rating Methodology

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

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

The updated assessment is a result of Moody's on-going
surveillance of commercial mortgage backed securities (CMBS)
transactions. Moody's prior assessment is summarized in a press
release dated 16 August 2012. The last Performance Overview for
this transaction was published on 26 November 2012.

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

As such, Moody's analysis encompasses the assessment of stressed

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

KIRCHMEDIA GMBH: Munich Prosecutors Search Deutsch Bank Offices
Annette Weisbach at Bloomberg News reports that Munich
prosecutors searched Deutsche Bank AG offices last week for
evidence that former management board members gave
false testimony in a civil suit tied to the 2002 demise of the
late Leo Kirch's media group, KirchMedia GmbH.

Munich prosecutors overseeing the proceedings since 2011 searched
the lender's Frankfurt headquarters on Dec. 19, Bloomberg

According to Bloomberg, Christian Streckert, a Deutsche Bank
spokesman, said by telephone, "The bank is still convinced that
the allegations raised more than a year ago will be proven

Mr. Kirch, who died in July, had said Deutsche Bank secretly
planned in 2002 to damage his reputation in an effort to exert
pressure on him, Bloomberg recounts.

The Munich Higher Regional Court said on Dec. 14 that Deutsche
Bank was found partially liable over the collapse of the media
group and must pay damages, Bloomberg relates.  The court ruled
the lender and former chief executive officer Rolf Breuer are
liable for statements in 2002 before the Kirch group filed for
bankruptcy, Bloomberg discloses.  The late media magnate's heirs
are seeking as much as EUR2 billion (US$2.7 billion), Bloomberg

                          About KirchMedia

Headquartered in Ismaning, Germany, KirchMedia GmbH -- was the country's second largest
media company prior to its insolvency filing in June 2002.  The
firm's collapse, caused by a US$5.7 billion debt incurred during
an expansion drive, was Germany's biggest since World War II.
Taurus Holding is the former holding company for the Kirch
group.  The case is docketed under Case No. 14 HK O 1877/07 at
the Regional Court of Munich.


HUNGARIAN EXPORT: Fitch Affirms 'BB+' Issuer Default Rating
Fitch Ratings has affirmed Hungarian Export Import Bank's (Hexim)
Long-term Issuer Default Rating (IDR) at 'BB+' and revised the
Outlook to Stable from Negative.

Rating Action Rationale

The rating actions follow the revision of the Outlook on
Hungary's Long-term IDR to Stable from Negative.

Rating Drivers and Sensitivities

The ratings of Hexim and of its senior debt are likely to remain
aligned with those of the Hungarian sovereign, and so would be
sensitive to any change in the sovereign ratings.  Fitch is of
the opinion that the state's strong propensity to support Hexim
is unlikely to be revised in the foreseeable future.

The rating actions are as follows:

  -- Long-term IDR affirmed at 'BB+'; Outlook revised to Stable
     from Negative
  -- Short-term IDR affirmed at 'B'
  -- Support Rating affirmed at '3'
  -- Support Rating Floor affirmed at 'BB+'
  -- EMTN Programme Senior foreign currency unsecured debt Long-
     and Short-term ratings affirmed at 'BB+' and 'B'
  -- Senior unsecured bond Long-term foreign currency rating
     affirmed at 'BB+'


IRISH BANK: Fitch Withdraws 'BB-/B' Issuer Default Ratings
Fitch Ratings has affirmed and withdrawn Irish Bank Resolution
Corporation Limited's (IBRC) ratings.

Rating Action Rationale

Fitch has withdrawn the ratings as IBRC has chosen to stop
participating in the rating process.  Therefore, Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical

IBRC has been in wind-down since last year and all its deposits
were transferred to Allied Irish Banks plc ('BBB'/Stable).  Most
of the bank's funding now comes from the Central Bank of Ireland
and the amount of debt issuance outstanding is now relatively
small. There are no covered bonds outstanding.

The rating actions are as follows:

  -- Long-term IDR: affirmed at 'BB-'; Outlook Stable; rating
  -- Short-term IDR: affirmed at 'B'; rating withdrawn
  -- Support Rating: affirmed at '3'; rating withdrawn
  -- Support Rating Floor: affirmed at 'BB-'; rating withdrawn
  -- Short-term debt: affirmed at 'B'; rating withdrawn
  -- Senior unsecured: affirmed at 'BB-'; rating withdrawn
  -- Sovereign-guaranteed Long-term/Short-term notes: affirmed at
     'BBB+'/'F2'; ratings withdrawn
  -- Sovereign-guaranteed commercial paper: affirmed at 'F2';
     rating withdrawn
  -- Sovereign-guaranteed Long-term/Short-term deposits: affirmed
     at 'BBB+'/'F2'; ratings withdrawn
  -- Sovereign-guaranteed Long-term/Short-term interbank
     liabilities: affirmed at 'BBB+'/'F2'; ratings withdrawn

MADIGAN PUB: LVA Chairman Steps Down Following Receivership
Liam Collins and Ronald Quinlan at Irish Independent report that
David Madigan, the chairman of the powerful Dublin publicans'
lobby group the Licensed Vintners Association (LVA) has resigned
following the decision of the Madigan Pub Group to take over a
Dublin pub on behalf of a receiver.

David Madigan resigned his position "with immediate effect" and a
new chairman will be appointed in the New Year, Irish Independent

According to Irish Independent, Mr. Madigan's decision relates to
a takeover of the well-known Clarke's pub in Irishtown, Dublin 4,
which has been put in receivership by Bank of Scotland.

The pub is now shut but it is believed many LVA members were
concerned when they learned that the Madigan Pub Group, which
runs a number of pubs in the Dublin area, had been appointed by
the receiver to take over the running of the pub, which is near
Lansdowne Road, Irish Independent notes.

It is believed that the pub will re-open under new management
early in the new year but, in the meantime, some publicans have
expressed concern about members of the LVA stepping in to take
over businesses belonging to fellow members which have run into
financial trouble, Irish Independent states.

WILLOW NO.2: Moody's Confirms 'Caa2' Rating on Series 39 Notes
Moody's Investors Service has confirmed the rating of the
following notes issued by Willow No.2 Series 39:


    Series 39 EUR7,100,000 Secured Limited Recourse Notes due
    2039, Confirmed at Caa2 (sf); previously on Jun 11, 2012
    Downgraded to Caa2 (sf) and Placed Under Review for Possible

Willow no.2 (Ireland) Plc Series 39 represents a repackaging of
Grifonas Finance No.1 Plc Class A Notes, a Greek residential
mortgage-backed security (the "Collateral"). All interest and
principal received on the underlying asset are passed net of on-
going costs to Willow No.2 series 39 notes. This rating is
essentially a pass-through of the rating of the Collateral.

Ratings Rationale

Moody's explained that the rating action taken on Dec. 21 is the
result of a rating action on Grifonas Finance No.1 Plc Class A
Notes, whose rating was confirmed at Caa2 (sf) on December 19,

This rating is essentially a pass-through of the rating of the
underlying securities. Noteholders are exposed to the credit risk
of Grifonas Finance No.1 Plc Class A Notes and therefore the
rating moves in lock-step.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the
ratings of the notes, as evidenced by 1) uncertainties of credit
conditions in the general economy, especially as the transaction
is exposed to an obligor located in Greece and 2) more
specifically, any uncertainty associated with the underlying
credits in the transaction could have a direct impact on the
repackaged transaction.

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

The principal methodology used in this rating was "Moody's
Approach to Rating Repackaged Securities" published in April

No cash flow analysis, sensitivity or stress scenarios have been
conducted as the rating was directly derived from the rating of
the collateral.

* IRELAND: Nearly 1,000 Jobs Saved Through Examinership Process
The Irish Times reports that nearly 1000 jobs at small firms were
saved through the examinership process this year.

According to the Irish Times, accountancy firm Hughes Blakes,
which conducted the research, said that this figure represents a
year-on-year increase of 67% on 2011, during which 574 jobs were

The figures come as new legislation is set to be passed by the
Government which will allow SME's to apply directly to the
Circuit Court for examinership, the Irish Times discloses.

Hughes Blake said the new provision in the Companies Bill could
cut the legal costs of examinership by up to 50%, making the
process a more accessible and affordable option for SMEs and
potentially doubling the number of jobs that could be saved in
2013, the Irish Times relates.

Neil Hughes -- -- managing partner of
Hughes Blake, said that the figures reiterate once again the
significant role the examinership process can play in saving jobs
when companies find themselves in difficulty, the Irish Times


BANCA MONTE: Fitch Downgrades Viability Rating to 'b'
Fitch Ratings has affirmed Banca Monte dei Paschi di Siena's
(MPS) Long-term Issuer Default Rating (IDR) at 'BBB' with a
Stable Outlook.  The bank's Viability Rating (VR) has been
downgraded to 'b' from 'bb+' and removed from Rating Watch
Negative (RWN).  The bank's Short-term IDR has been affirmed at
'F3', Support Rating affirmed at '2' and Support Rating Floor
(SRF) affirmed at 'BBB'.

The subordinated debt and hybrid instruments have been downgraded
to 'B-' from 'BB' and removed from RWN for Lower Tier 2 debt,
'CCC' from 'B-' and removed from RWN for Upper Tier 2 debt and
'CC' from 'CCC' for Tier 1 instruments and preferred securities.
MPS's fully-owned subsidiary Banca Antonveneta's Long-term IDR
has been affirmed at 'BBB' with a Stable Outlook and its Short-
term IDR has been affirmed at 'F3'.

Rating Action Rationale

The affirmation of MPS's IDRs, Support Rating and SRF reflects
Fitch's view that there is a high probability that the Italian
authorities will provide continued support to MPS as Italy's
third-largest banking group with a significant market share in
customer deposits and lending.  The expected injection of
additional hybrid capital into MPS by the government underpins
Fitch's view that support is forthcoming.

The downgrade of the VR reflects Fitch's view that the bank's
internal capital generation after the receipt of capital from the
government will remain weak.  The agency expects operating
profitability to remain under pressure in an unfavorable
operating environment where loan impairment charges are expected
to remain high in 2013.  The downgrade also reflects weak asset
quality and the need for MPS to continue rebalancing its funding
profile.  MPS's current VR is based on Fitch's expectation that
the bank will receive up to EUR2bn of fresh capital from the
state intended to cover the capital shortfall identified by the
EBA stress test, as a result of high negative valuation reserves
from the bank's portfolio of Italian government bonds.


MPS's IDRs are based on support from the Italian authorities and
are at the bank's SRF.  Fitch expects that the new hybrid capital
to be issued to the Italian state will be injected, which
highlights the authorities' propensity to support the bank.
Fitch expects that the new instruments will include an option for
the bank to convert the instruments into common shares.  This,
and the possibility that coupon payments for these new
instruments under certain circumstances can be paid in the form
of MPS's shares, means that the state could become a shareholder
of the bank in the future.

The Support Rating and the SRF are sensitive to changes in the
authorities' propensity and ability to provide support.  The SRF
would be downgraded if the authorities showed signs of a reduced
propensity to provide support to MPS, which Fitch currently does
not expect, or if Italy's sovereign rating ('A-'/Negative) was
downgraded to below 'BBB'.  Fitch currently expects that MPS's
SRF would not be downgraded if any downgrade of Italy was limited
to up to two notches, where the sovereign rating would converge
with the SRFs of Italy's five largest banks.  The SRF could be
upgraded if Italy's rating saw a material upgrade, or if there
was a sharp increase in the long-term support provided to MPS,
which Fitch currently does not expect.


The bank's VR reflects Fitch's expectation that the bank's
operating performance is likely to remain weak given the
difficult operating environment, where net interest income will
remain under pressure in a low-interest environment.  Funding
costs have fallen somewhat from their peak but remain high.  At
the same time, Fitch expects loan impairment charges to remain
elevated as the Italian economy is not expected to come out of
recession until H213.  The bank has made progress in addressing
its cost efficiency, and Fitch expects that the projects in its
business plan to trim its branch network and reduce the number of
personnel will result in lower operating expenses.

MPS's VR would come under further pressure if the bank did not
manage to improve its cost efficiency.  A material and structural
improvement in operating performance, which Fitch believes will
be unlikely to materialize in the short-term, would be necessary
before the VR would come under upward potential.

The VR also reflects Fitch's view that the injection of fresh
capital in the form of hybrid instruments will improve the bank's
loss absorbing capacity.  However, Fitch expects coupon payments
on these hybrid instruments to be high, which means that internal
capital generation will be further pressured.  The bank plans to
repay the hybrid instruments partly through a capital increase of
up to EUR1bn, under its current business plan.  MPS's VR would
come under pressure if the bank did not receive the fresh hybrid
capital or if the bank's plans for the repayment of the capital
were not realised.

MPS's asset quality has deteriorated further in 9M12 reflecting
the domestic economy's weak performance.  Fitch expects asset
quality to worsen further in 2013, but the bank has maintained
the coverage level of each single category of problem loan
(doubtful, watchlist, restructured and past due).  In addition,
the bank holds collateral for a high proportion of impaired
loans.  Deterioration in the value of collateral held by the bank
that would require a potentially significant increase in loan
impairment allowances would put pressure on the VR as net
impaired loans at end-September 2012 accounted for over 150% of
the bank's equity.  An upgrade of the VR would require clear
signs of improved prospects for reducing the bank's large stock
of impaired loans.

Under its business plan, MPS also concentrates on strengthening
its funding profile, and Fitch expects the bank to continue
concentrating on funding from core customers.  Fitch considers
the bank's current liquidity acceptable.  However, funding
includes a high proportion of European Central Bank facilities,
and Fitch considers that the bank will need to rebalance its
funding profile towards retail derived sources in an environment
that remains challenging.


MPS's Lower Tier 2 debt is rated one notch below its VR in line
with Fitch's criteria for rating these instruments.  As the
rating is notched off the VR, it is sensitive to changes in the
bank's VR.

The downgrade of the bank's Upper Tier 2 and Tier 1 instruments
and preferred securities reflects Fitch's view that these notes'
non-performance risk has increased in the coming years because
the receipt of fresh state aid means that in case of reporting a
net loss MPS will be obliged not to make coupon payments where
the terms of the instruments allow for non-payment.  The Upper
Tier 2 notes are rated one notch above the Tier 1 instruments to
reflect the cumulative coupon on these instruments whereas coupon
payments on Tier 1 instruments is non-cumulative.


Antonveneta is a wholly owned subsidiary of MPS.  Its ratings are
based on support from its parent and reflect Fitch's view that
Antonveneta forms a core part of the group.  Antonveneta's
ratings are sensitive to changes in MPS's IDRs or to changes in
MPS's propensity to support its subsidiary.  Fitch does not
expect the propensity to decline given the announced merger of
Antonveneta into the parent.

The rating actions are as follows:


  -- Long-term IDR: affirmed at 'BBB'; Outlook Stable
  -- Short-term IDR: affirmed at 'F3'
  -- VR: downgraded to 'b' from 'bb+', removed from RWN
  -- Support Rating: affirmed at '2'
  -- Support Rating Floor: affirmed at 'BBB'
  -- Debt issuance program (senior debt): affirmed at 'BBB'
  -- Senior unsecured debt, including guaranteed notes: affirmed
     at 'BBB'
  -- Lower Tier 2 subordinated debt: downgraded to 'B-' from
     removed from RWN
  -- Upper Tier 2 subordinated debt: downgraded to 'CCC' from
     'B-', removed from RWN
  -- Preferred stock and Tier 1 notes: downgraded to 'CC' from

Banca Antonveneta:

  -- Long-term IDR: affirmed at 'BBB'; Outlook Stable
  -- Short-term IDR: affirmed at 'F3'
  -- Support Rating: affirmed at '2'


SAMRUK-ENERGY JSC: S&P Affirms 'BB+' Rating on US$500-Mil. Notes
Standard & Poor's Ratings Services has affirmed its 'BB+' issue
rating on the proposed $500 million (about Kazakhstani tenge
[KZT] 75 billion) notes of Kazakhstan state-owned vertically
integrated electricity utility Samruk-Energy JSC (BB+/Stable/B;
Kazakhstan national scale rating 'kzAA-'). The recovery rating of
'4' on the proposed notes remains unchanged.

"The 'BB+' issue rating on the proposed US$500 million notes is
at the same level as the corporate credit rating on Samruk. The
recovery rating of '4' indicates our expectation of average (30%-
50%) recovery prospects in the event of a payment default. The
size of the issuance has increased to US$500 million from the
US$200 million originally envisaged. We understand that the
majority of the proceeds of the notes (about US$420 million) will
be utilized for capital expenditures or acquisition spending,"
S&P said.

"Our opinion of the recovery prospects for the notes is supported
by our view that, in the event of default, the likely recovery
for the noteholders would hinge on the ability and willingness of
the Kazakh government to negotiate with creditors, rather than
formal restructuring, given the implied sovereign support and the
strategic nature of Samruk-Energy's assets. However, the recovery
prospects are constrained by the unsecured nature of the notes
and our view of Kazakhstan as an unfavorable insolvency regime
for creditors," S&P said.

"Given implied sovereign support and the strategic nature of
Samruk-Energy's assets, we believe it unlikely that the group's
assets would be sold to repay creditors. Therefore, in large
part, we believe noteholder recoveries are likely to depend on
the ability and willingness of the Kazakh government to reach a
negotiated settlement in the event of default," S&P said.

"Following the increase in the size of the proposed notes issue,
we now estimate that the group's intrinsic enterprise value at
default would need to exceed KZT90 billion at the hypothetical
point of default, based on our waterfall assumptions, to cover
more than 30% of the notes' principal and prepetition interests.
This is consistent with a recovery rating of '4'. We assume that
about KZT35 billion of prior-ranking claims, excluding
enforcement costs, would need to be covered before payment of
about KZT157 billion of unsecured debt claims that we assume
would be outstanding at default. The latter amount comprises the
proposed KZT75 billion notes, as well as various unsecured debt
instruments," S&P said.


Ratings Affirmed

Samruk-Energy JSC
Senior Unsecured Debt                  BB+
  Recovery Rating                       4


SIA EECF: Fitch Affirms 'B' Rating on Secured Revolver Facility
Fitch Ratings has revised the Outlook on UAB Bite Lietuva's
(Bite) Long-term Issuer Default Rating (IDR) to Positive from
Stable.  The agency has also affirmed SIA EECF Bella Finco's
senior secured revolving credit facility (RCF) at 'B'.  The
facility's Recovery Rating is 'RR3'.  The senior secured notes
due 2014 issued by Bite Finance International BV have been
affirmed at 'B-'. The notes' Recovery Rating is 'RR4'.

The Positive Outlook takes into account the steps management are
taking to address the refinancing risk in 2014, and an
expectation of solid free cash flow performance which will in
turn drive a moderately improving leverage profile.  Focus on
cash flow generation and deleveraging accompanied by a measured
approach to the further development of the group's market
position in Latvia are, in Fitch's view, the right strategic
objectives for a business that is limited by its small size,
mature markets and a tough competitive environment.  A successful
outcome to its refinancing initiatives and delivery of the
agency's forecast expectations for 2013 should provide support
for a potential upgrade.

Key Rating Drivers

Growing Operations in Latvia:

Bite has made solid progress in developing its subscriber base in
Latvia over the past two years, momentum that management expect
to continue into 2013.  A shift in the business mix to post-paid
subscribers should continue to support blended ARPU metrics and
help manage churn rates.  Subscriber acquisition and retention
costs -- albeit characterized as customer loans -- will need to
be managed in a continued growth phase and it remains to be seen
whether management can succeed in efforts to reduce/stabilize the
negative working capital trends that this business model
generates.  The potential for escalating bad debt in the event of
a further economic downturn will need to be monitored given the
change in the handset model.

Growing Cash Flows:

Free cash flow has developed well over the past two years with
the company generating a free cash flow margin of 9.4% in 2011 --
a metric which is strong for the rating level.  While handset
related working capital investments have resulted in this metric
coming under pressure in 2012, a low single digit metric and
scope to expand the metric in future years, points to an ongoing
ability to deleverage.

Improving Leverage Metrics:

Unadjusted (net debt / EBITDA) leverage of 4.3x for 2011 was a
sharp improvement on the previous year with free cash flow
performance in the current year likely, in Fitch view, to result
in the metric falling comfortably below 4.0x in 2012.  The
company's target to reduce the metric below 3.5x in 2013
highlights a commitment to a conservative financial policy,
something that should help in management's objectives to
refinance the 2014 bond.  Fitch's rating case suggests a metric
that should be around 3.7x to 3.8x in 2013; a level that is
strong for the current ratings and supports the Positive Outlook.

Need to Refinance Bonds:

The company has EUR171m of outstanding senior secured bonds
maturing in March 2014, representing the mainstay of the
company's debt capital.  Fitch expects management to take action
early in 2013 to address this maturity with discussion suggesting
the company is exploring opportunities both in the bank and
secured bond markets.  A successful refinancing of the bonds in
H113 will be seen as a validation of management's strategy by the
credit markets, and represent a materially positive event in
terms of support for the Positive Outlook and key step in any
eventual upgrade.  A poor market reaction or market conditions
that obstructed a successful transaction will inevitably weigh on
the rating, the significance of which will grow in importance as
the maturity of the bonds gets nearer.

Challenging Operating Environment

Bite operates in two competitive markets, in both cases against
competitors (TeliaSonera and Tele2) with scale, diversification
and a stronger financial position.  Its markets are mature and
Bite is positioned in both, as the market number three by a
considerable margin.  While being positioned as the challenger
provides the opportunity to take share from the incumbents, its
competitors are both in a much stronger position to endure a
period of sustained economic downturn or if they chose to do so,
to propagate a sustained period of aggressive pricing or
otherwise disrupt the market.  LTE spectrum auctions in 2013 are
an outlying risk, a cost that has proven in some markets to have
been unexpectedly high, and risk that could increase capex

Small Size, Limited Flexibility:

The degree to which the economy affected Bite in the 2007 - 2009
downturn demonstrated the constraints its limited size and market
position can exert on the company's operating and financial
profile; effects that were felt far less sharply by its larger
competitors given their inherently stronger operations and the
diversification within their businesses.


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

  -- Latvian operations combining EUR45-50 million in service
     revenue and EBITDA margin 20%, combined with a broadly
     stable performance in Lithuania
  -- Successful refinancing of 2014 bonds
  -- 2013 financial leverage - FFO net adjusted leverage -
     consistent with Fitch's rating case of 3.7x or below
  -- Sufficient investments into 3G and successful modernization
     of 3G network in Lithuania (3G coverage in line with
     management 2013 plan)
  -- Consistently positive free cash flow

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

  -- Stabilization at the current level to reflect expectations
     the above criteria are unlikely to be met by mid-2014.
  -- Failure to refinance the 2014 bonds by H213 would lead to a
     Negative Outlook at a minimum.


ARCELORMITTAL SA: Fitch Cuts LT Issuer Default Rating to 'BB+'
Fitch Ratings has downgraded Luxembourg-based ArcelorMittal S.A's
(AM) Long-term Issuer Default Rating (IDR) and senior unsecured
ratings to 'BB+' from 'BBB-', and its Short-term IDR to 'B' from
'F3'.  The Outlook on the Long-term IDR is Stable.  AM's US$650
million Subordinate Perpetual Capital Securities have also been
downgraded to 'BB-' from 'BB'.

The downgrade reflects the more challenging than previously
expected outlook for Western European steel markets in 2013,
which in turn implies a slower pace of improvement in the group's
credit metrics over the next two to three years.  Fitch does not
now expect AM to achieve the agency's previous targets of funds
from operations (FFO) gross leverage below 3.0x and EBIT margin
above 5% by the end of 2014.  For 2013, Fitch now expects an EBIT
margin of around 2.5% with FFO gross leverage of between 3.5-

Fitch believes that AM will continue to pursue a variety of non-
operational measures including asset sales to reduce absolute
debt levels.  While this process carries execution risks, Fitch
considers that AM has a good track record in delivering on
promises in this regard.  These measures will continue to offset
the weakness in steel markets and underpin the Stable Outlook.


Western European Steel Market

Fitch expects market conditions to remain challenging for western
European steel producers in 2013.  From a demand perspective,
construction is expected to be weakest with a 5%-10% volume fall
whilst no improvement in automotive markets is expected until
late 2013.  Steel prices are unlikely to increase materially in
the coming 12 months, translating into ongoing weak profitability
and free cash flow generation for producers.

Significant Scale and Diversification

The ratings reflect AM's position as the world's largest steel
producer.  AM is also the world's most diversified steel producer
in terms of product mix and geography, and it benefits from a
good level of vertical integration into iron ore.

Mid-Point Cost Position

AM has an average cost position (higher second quartile) overall,
varying across the key regions in which it operates. The cost
positions of individual plants vary significantly, with those in
Europe generally operating at higher costs, while those in the
Americas, Asia and the Commonwealth of Independent States have
the lowest costs.  The company has embarked on a cost-saving
initiative that will see utilization rates increased at the
lower-cost plants, supporting an improvement in longer-term

Increasing Mining Output

AM is expected to continue to expand its mining operations,
notably through investments in iron ore in Liberia, Canada and
Brazil.  Fitch expects the mining division to become a larger
contributor to group EBITDA, contributing over 35% by 2014.
Higher mining margins compared to those generated by the steel
operations will have a positive effect on group profitability.


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

  -- FFO gross leverage below 2.25x
  -- Recovery in EBIT margins to above 6%

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

  -- FFO gross leverage sustained above 3.0x
  -- Persistently negative free cash flow

INTERCONTINENTAL CDO: S&P Cuts Rating on Class C Notes to 'B+'
Standard & Poor's Ratings Services took various credit rating
actions on all rated classes of notes in Intercontinental CDO

Specifically, S&P has:

-- Withdrawn its 'AAA (sf)' ratings on the class A-2 and A-3

-- Lowered to 'BBB+ (sf)' from 'A- (sf)' its ratings on the
    class B-1 and B-2 notes;

-- Lowered to 'B+ (sf)' from 'BB+ (sf)' its rating on the class
    C notes;

-- Lowered to 'CCC+ (sf)' from 'B+ (sf)' its rating on the class
    D notes; and

-- Affirmed its 'CC (sf)' ratings on the preferred securities
    and combination notes I, II, and IV.

"The rating actions follow our review of the transaction's
performance by applying our credit and cash flow analysis and our
relevant criteria for transactions of this type. These criteria
include 'Update To Global Methodologies And Assumptions For
Corporate Cash Flow and Synthetic CDOs,' published on Sept. 17,
2009, and 'Counterparty Risk Framework Methodology And
Assumptions,' published on Nov. 29, 2012," S&P said.

"Following our analysis and since our previous review in 2011, we
have observed that the credit quality of the portfolio has
weakened due to increased concentration risk. The transaction has
significantly deleveraged due to the pay-down of the class A-2
and A-3 notes. Since our previous review, the proportion of
assets rated in the 'CCC' category (rated 'CCC+', 'CCC', or 'CCC-
') has however decreased to 0.00% from 15.59%. At the same time
the level of defaulted assets (assets from obligors rated 'CC',
'SD' [selective default], or 'D') has increased to 23.41% from
3.17%. Credit enhancement has increased for all classes of notes.
At the same time, we have observed a decrease in the
transaction's weighted-average spread," S&P said.

"We have subjected the transaction's capital structure to a cash
flow analysis to determine the break-even default rates (BDRs)
for each rated class. We have incorporated a series of cash flow
stress scenarios using various default patterns, levels, and
timings for each liability rating category, in conjunction with
different interest stress scenarios," S&P said.

"Our ratings on the class B-1, B-2, C, and D notes are
constrained by the application of the largest obligor test, a
supplemental stress test that we introduced in our 2009 cash flow
collateralized debt obligation (CDO) criteria. This test
addresses event and model risk that might be present in the
transaction. The results of the largest obligor test reflect the
materially increased concentration in the portfolio, compared
with our previous review. Although the BDRs generated by our cash
flow model indicated higher ratings, the largest obligor test
effectively capped the ratings on the class B-1 and B-2 notes at
'BBB+ (sf)', on the class C notes at 'B+ (sf)', and on the class
D notes at 'CCC+ (sf)'. We have therefore lowered our ratings on
the class B-1, B-2, C, and D notes accordingly," S&P said.

"At the same time, our analysis indicates that the levels of
credit enhancement available for the preferred securities and
combo I, II, and IV notes, remain commensurate with their current
ratings. We have therefore affirmed our ratings on these classes
of notes at 'CC (sf)'," S&P said.

"Since our last review, the issuer has fully repaid the class A-2
and A-3 note balance that was outstanding. We have therefore
withdrawn our ratings on these classes of notes," S&P said.

"The Bank of New York Mellon (AA-/Negative/A-1+) acts as an
account bank and custodian. In our view, the counterparty is
appropriately rated to support the ratings on these notes," S&P

"Intercontinental CDO is a cash flow collateralized loan
obligation (CLO) transaction that closed in May 2002. The
portfolio comprises euro-denominated loans to primarily
speculative-grade corporate firms and is managed by Pacific
Investment Management Co. LLC," S&P said.


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

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



Intercontinental CDO S.A.
EUR405 Million Fixed- and Floating-Rate Notes

Class                     Rating
                      To           From

Ratings Withdrawn

A-2                   NR          AAA (sf)
A-3                   NR          AAA (sf)

Ratings Lowered

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

Ratings Affirmed

Preferred Securities  CC (sf)
Comb I                CC (sf)
Comb II               CC (sf)
Comb IV               CC (sf)

NR-Not rated.


* MUNCIPALITY OF SKOPJE: S&P Affirms 'BB' Issuer Credit Rating
Standard & Poor's Ratings Services affirmed its 'BB' ratings on
the Macedonian Municipality of Skopje. The outlook is stable.

"The ratings on the Municipality of Skopje, the capital of the
Republic of Macedonia (BB/Stable/B) are constrained, in our view,
by limited predictability of the municipality's finances due to
the combination of the developing and unbalanced institutional
framework under which it operates, the nascent nature of the
municipality's long-term planning, low wealth levels, and limited
fiscal flexibility given the municipality's pressing
infrastructure needs. In addition, the rating is affected by what
we see as relatively large contingent liabilities. This is
because municipal companies have weak performance and their
exposure to liabilities incurred within private-public
partnership projects is set to rise," S&P said.

"The ratings are supported by Skopje's strong operating
performance, high cash reserves and gradually increasing, if
still low, tax-supported debt," S&P said.

"We regard Skopje's liquidity as a positive factor for the rating
due to its large cash holding, which comfortably exceeds the
municipality's debt service falling due within the next 12
months. It also benefits from a robust internal cash flow
generation capability, but we view its access to external
liquidity as uncertain, owing to the relatively immature local
banking system and capital markets for municipal debt," S&P said.

"In our view, economic growth and conservative financial planning
should mean that the municipality of Skopje will maintain a
strong operating surplus and high capital revenues as well as a
strong liquidity position that would offset its steadily rising
debt burden," S&P said.

"We could lower the rating if the sovereign credit rating on
Macedonia were lowered. Even if the sovereign rating remains
intact, we may lower the rating on Skopje within the next 12
months if, in line with our downside-case scenario, the
municipality depletes its cash reserves to maintain a high level
of capital investments while access to external funding becomes
constrained. In our view, this scenario may lead to a structural
worsening of the municipality's currently very strong liquidity
position," S&P said.

"If we were to raise the sovereign ratings on Macedonia, we could
also raise the rating on Skopje within the next 12 months if, in
line with our upside-case scenario, a rapid recovery in the
municipality's real estate market led to faster revenue growth
than that expected under our base-case scenario. Such a scenario
would likely restrict the municipality's deficit after capital
accounts to below 5% of revenues and curb accumulation of tax-
supported debt, which would stay below 30% of consolidated
operating revenues at least until 2016," S&P said.


HYVA GLOBAL: Moody's Changes Outlook on 'B2' CFR to Negative
Moody's Investors Service has changed to negative from stable the
outlook on the B2 corporate family rating (CFR), probability of
default rating (PDR) and senior secured debt instrument rating of
Hyva Global B.V. (Hyva).

Ratings Rationale

"The change in the outlook to negative was prompted by our
expectation that Hyva's operating performance will continue to be
adversely affected by depressed demand for commercial vehicles
and machinery equipment in China, India, Brazil and certain
European countries throughout the remainder of the year with
prospects for an only modest recovery in 2013." said Kathrin
Heitmann, Moody's lead analyst for Hyva. A recovery in any of
Hyva's markets is very much dependent on increased infrastructure
and mining investments.

Against this, Hyva's leverage as adjusted by Moody's will likely
exceed the 5.0x debt/EBITDA in the current financial year
(estimated at around 5.9x at September 30, 2012 based on pro-
forma EBITDA), which is above the requirement for Hyva to remain
in the B2 rating category. Hyva's reported debt consists mainly
of the company's US$375 million senior secured notes due 2016.
Therefore, the company's ability to deliver hinges on improving
EBITDA and free cash flow generation (FCF). Moody's is
increasingly concerned that the headroom under financial
covenants (leverage and cash flow cover) could diminish if
absolute EBITDA and cash flow generation weakened in subsequent
quarters as a result of a continued decline in quarterly

Moody's takes some comfort from the company's low operating
leverage and increased focus on cost efficiency which has enabled
Hyva to maintain its reported pro-forma EBITDA margin at 9.8% in
the first nine months of 2012 despite a 22% drop in revenues
compared to the previous year's period. However, pro-forma EBITDA
margins declined to 6.0% in the third quarter of 2012 from 10.6%
in the previous year's quarter as a result of increasing SG&A
costs due to a change in geographic mix and installation of a
corporate level management function. The current B2 rating
incorporates the expectation that Hyva will be able to gradually
reduce SG&A costs from the current high level in subsequent
quarters, thereby improving pro-forma EBITDA margins back to
historic levels of around 10-12%.

In addition, Moody's expects that Hyva's focus on working capital
management should enable the company to maintain cash on balance
sheet at around US$60 million. Hyva had a negative operating cash
flow of US$18 million in the first nine months of 2012, but
operating cash flow turned positive in the third quarter (US$12
million) due to a US$28 million working capital release. Moody's
currently does not anticipate a further sizeable working capital
release in the fourth quarter of 2012.

Hyva's liquidity includes a cash balance of US$63 million at
September 30, 2012 and a committed revolving credit facility
(RCF) of US$30 million (US$28.5 million availability at
September 30, 2012) due 2015. Seasonal working capital movements,
while negatively affected by the current slowdown in China,
remain sufficiently covered by cash on the balance sheet and
access to the revolving credit facility.

Hyva's ratings continue to be supported by the company's (1)
international presence, with a strong footprint in emerging
markets in Asia and the Americas; (2) leadership in core markets
based on market share, brand, product, efficiency and
reliability, as well as by an established global service network;
(3) flexible cost base, with low operating leverage; and (4)
balanced debt maturity profile, with no material debt maturing
before 2015.

What Could Change The Ratings UP/DOWN

Downward pressure on the rating could arise if there was a
further deterioration in Hyva's operating performance or the
company was to engage in a more aggressive financial policy that
results in (1) Moody's-adjusted debt/EBITDA above 5.0x for a
prolonged period of time; (2) negative free cash flow; or (3)
reduced covenant headroom.

Moody's could consider upgrading Hyva's rating if the company
were to (1) generate consistently positive free cash flow and
achieve debt/EBITDA at or below 4.0x; (2) maintain a conservative
financial policy and adequate short-term liquidity profile; and
(3) maintain strict control of operations.

The principal methodology used in rating Hyva Global B.V. was the
Global Heavy Manufacturing Rating Methodology published in
November 2009. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.

Hyva is a leading global provider of hydraulic (tipping)
solutions for the commercial vehicle industry. Hyva is also an
important player in the manufacturing and supply of truck-mounted
cranes, hook and skip loaders, as well as compactors and waste-
collecting units for the environmental services industry. For the
financial year ended 31 December 2011, Hyva reported pro-forma
revenues of US$767 million. Hyva is majority-owned by private
equity funds managed by Unitas Capital and NWS Holdings, a
flagship infrastructure arm of New World Group.


BANCO INTERNACIONAL: Fitch Affirms 'BB/B' IDRs; Outlook Negative
Fitch Ratings has affirmed Banif - Banco Internacional do
Funchal, S.A.'s (Banif) Long-term Issuer Default Rating (IDR) at
'BB', Short-term IDR at 'B', Support Rating at '3' and Support
Rating Floor (SRF) at 'BB'.  At the same time, the agency has
downgraded Banif's Viability Rating (VR) to 'c' from 'cc'.
Banif SGPS, a Portuguese holding company, was absorbed by its
main operating subsidiary, Banif on December 17, 2012.  As a
result, Banif is now the group's consolidating entity.  Banif
represents around 84% of consolidated assets.  Banif SGPS's
financial position was weak and at end-2011 it failed to comply
with minimum prudential capital requirements.  Following the
merger, Banif's capital levels were considerably eroded and the
bank requires recapitalization.

Fitch expects the Portuguese state to inject a substantial amount
of new capital into Banif.  This will be sourced from the EUR12
billion capital backstop facility available for banking sector
recapitalizations under the IMF/EU support program.

Rating Action Rationale

Banif's Long-term IDR is at its SRF of 'BB' and is driven by
support from the Portuguese state.  Portugal has been supportive
of its banks, injecting capital as required from the EUR12
billion facility.

The downgrade of Banif's VR reflects Fitch's view that it
displays exceptionally high levels of fundamental credit risk.
Banif's credit profile is weak and, in particular, Fitch believes
the group's capital position is extremely weak.  Not only were
there breaches to prudential capital requirements at holding
company level, but the agency estimates that, post- merger,
Banif's Fitch Core Capital/weighted risks ratio could fall below
a low 4%. Capital shortfalls, originally displayed at the holding
company level, appear to have originated from high exposures to
riskier assets and activities conducted by subsidiaries operating
in real estate activities, at times conducted with large clients
outside the core SME banking business.  Impairment charges
relating to such activities appear to have been significant and
debt servicing costs at holding company level also appear to have
been high.  In addition, Banif's liquidity ratios are strained
and the bank relies heavily on ECB funding.

Only credit institutions are eligible to receive state capital
injections drawn from the capital support framework.  Banif's
absorption of the holding company allows state capital to flow
into the group, through the bank, and restore the group's
capitalization to at least the minimum level required by the Bank
of Portugal by end-2012 (core capital ratio of 10%).  The amount
of capital to be injected by the Portuguese government is not

Rating Drivers and Sensitivities - IDRs, SUPORT RATINGS AND

Banif's Long-term IDR and SRF are one notch below Portugal's
sovereign rating ('BB+'/Negative).  This reflects Fitch's view
that the state's propensity to support the country's second tier
banks is marginally weaker than its propensity to support
systemically important banks.  The SRFs assigned to the large
banks are equalized with the sovereign rating.  The SRFs reflect
Fitch's assessment of sovereign and international support for
Portuguese banks available under the IMF/EU support framework.

The Negative Outlook on Banif's Long-term IDR mirrors that on the
sovereign.  This reflects the high correlations between bank and
sovereign ratings in Portugal.  Banif's Long-term IDR and SRF are
therefore sensitive to a downgrade of Portugal's sovereign
rating.  In addition, the Negative Outlook reflects a potential
change in Fitch's assumptions regarding the Portuguese
authorities' propensity to support Banif in the future.

Rating Drivers and Sensitivities - VR

At 'c', Banif's VR reflects that, in Fitch's opinion, failure of
the bank (under Fitch's definitions which include the receipt of
extraordinary support) is imminent or inevitable.  The VR also
reflects weak asset quality.  At Banif SGPS, the impaired
loans/total loans ratio, according to Bank of Portugal
calculations which are more generous than those employed in other
jurisdictions, reached a high 15% at end-Q312; exposure to the
construction and real estate sectors is sizeable, which makes
Banif vulnerable to a further downturn in real estate prices.
Also, the liquidity and funding structure are strained.

The receipt of state capital by Banif will constitute, in Fitch's
view, receipt of extraordinary support.  Once capital needs are
identified and support is committed, Banif's VR will be
downgraded to 'f' reflecting the bank's failure under Fitch's
definitions.  Following recapitalization, the agency intends to
re-assess Banif's VR.  In particular, Fitch may conduct a review
of the newly integrated businesses previously consolidated under
Banif SGPS.

Subordinated Debt and Other Hybrid Securities

The bank's subordinated debt and preference shares have been
affirmed at 'C'.  Given the bank's weak financial profile, Fitch
believes there is a high risk of non-performance associated with
these debt instruments.  The ratings are sensitive to an upgrade
of Banif's VR.

The ratings actions are as follows:


  -- Long-term IDR affirmed at 'BB', Outlook Negative
  -- Short-term IDR affirmed at 'B'
  -- Viability Rating downgraded to 'c' from 'cc'
  -- Support Rating affirmed at '3'
  -- Support Rating Floor affirmed at 'BB'
  -- Senior unsecured debt affirmed at 'BB'
  -- Senior unsecured short-term debt affirmed at 'B'
  -- Lower Tier 2 subordinated debt issues affirmed at 'C'
  -- Preference shares affirmed at 'C'


GARANTI BANK: Fitch Lifts Issuer Default Rating From 'BB+'
Fitch Ratings has upgraded Garanti Bank S.A.'s (Garanti Romania)
Long-term Issuer Default Rating (IDR) to 'BBB-' from 'BB+'.  The
Outlook is Stable.

The rating actions follow the upgrade of the bank's ultimate
parent, Turkiye Garanti Bankasi A.S.'s (TGB) Long-term foreign
currency IDR.


The upgrade of the IDR reflects TGB's improved ability to provide
support to Garanti Romania in case of need.  Fitch believes
Garanti Romania is strategically important to TGB and the agency
therefore factors a high probability of parent support into its


Garanti Romania's IDRs are driven by the support that it can
expect to receive from its ultimate shareholder, TGB, and are
sensitive to any change in TGB's IDRs.  The Stable Outlook on the
Long-term IDR mirrors that on TGB's Long-term foreign currency

Upside potential for Garanti Romania's IDRs is currently limited
as TGB's Long-term foreign currency IDR is currently at Turkey's
'BBB' Country Ceiling.  Garanti Romania's IDRs and Support Rating
could be downgraded if TGB's Long-term foreign currency IDR was
downgraded or there was a marked reduction in the strategic
importance of the bank for TGB, but neither of these is currently
anticipated by Fitch.

The rating actions are as follows:

Garanti Romania

  -- Long-term foreign currency IDR: upgraded to 'BBB-' from
     'BB+'; Outlook Stable
  -- Short-term foreign currency IDR: upgraded to 'F3' from 'B'
  -- Support Rating: upgraded to '2' from '3'
  -- Viability Rating: unaffected at 'b'

* ROMANIA: Larger Companies Went Bust in 2012
Oana Gavrila at Ziarul Financiar reports that,
Hidroelectrica, Tnuva, a few real estate developers and 15,000
other businesses were unable to pay their debts this year and
were forced to file for insolvency and part of them went


ABSOLUT BANK: Fitch Puts RUB5-Bil. Bonds on Rating Watch Negative
Fitch Ratings has assigned Russia-based Absolut Bank's RUB5
billion exchange bonds (series BO-01) a National Long-term rating
of 'AA(rus)' and placed it on Rating Watch Negative (RWN).

The bonds bear a semi-annual coupon rate of 10.5% for the first
three coupon payments and mature in December 2015.  There is a
put option exercisable in June 2014.  Obligations on the bonds
rank pari passu with the bank's other senior unsecured debt.  The
latter excludes retail deposits which rank higher according to
Russian banking law.  Absolut's retail deposits totaled RUB3.2
billion or 18% of the bank's liabilities in end-11M12's statutory

Absolut's 'BB+' Long-term Issuer Default Rating (IDR) and
'AA(rus)' National Long-term rating are based on potential
support from the parent, Belgium's KBC Bank ('A-'/Stable).  The
RWN on Absolut's ratings reflect the bank's potential sale in the
near future which would likely lead to Absolut's ratings being
downgraded, in Fitch's view.

INT'L INDUSTRIAL: Agency Has Right to Sell Pugachyov's Villa
According to Bloomberg News' Yuliya Fedorinova, Kommersant
reported that Maya Chudutova, the lawyer of Russia's state-owned
Deposit Insurance Agency, said the agency will have the right to
sell entrepreneur Sergei Pugachyov's villa in Nice.

Bloomberg relates that the newspaper said Chateau's estimated
value is EUR30 million.

Mr. Pugachyov's International Industrial Bank lost its license in
2010 after it defaulted on foreign currency bonds, Bloomberg

As reported by the Troubled Company Reporter-Europe on Dec. 3,
2010, Dow Jones Daily Bankruptcy Review, citing an Agence France-
Presse, related that a Moscow court declared International
Industrial Bank, also known as Mezhprombank, bankrupt less than
two months after its operating license was suspended by the
Russian Central Bank.  The central bank accused IIB of failing to
report accurate account data and being unable to satisfy its
creditor obligations, Dow Jones Daily Bankruptcy Review
disclosed.  Dow Jones Daily Bankruptcy Review, citing RIA Novosti
news agency, said the bank's temporary administrator told the
Moscow arbitration court that the bank had assets of RUR62.2
billion (US$2.99 billion) and liabilities of RUB92.825 billion.
According to Dow Jones Daily Bankruptcy Review, the temporary
administrator, as cited by RIA Novosti, said that the bank's
"risky credit policy led to its insolvency".

Headquartered in Moscow, International Industrial Bank lends to
commercial and industrial projects run by United Industrial
Corporation, which is affiliated with Sergey Pugachyov, a
businessman and member of the Federation Council of Russia, the
upper chamber of the parliament of the Russian Federation.
Mr. Pugachyov and his family own 81% of IIB.  The bank's senior
managers own the rest.

* CHUVASHIA REPUBLIC: Moody's Assigns First-Time 'Ba2' Rating
Moody's Investors Service has assigned a first-time Ba2 global
scale local-currency rating to the Republic of Chuvashia's bonds
(RU34007CHU0, RU31008CHU0 and RU34009CHU0), which together total
RUB4.5 billion. The rating on the bonds is derived from the
region's issuer rating.

These senior unsecured bonds were issued in 2008, 2011, and 2012,
have a fixed coupon rate and are due in 2013, 2014 and 2015,
accordingly. Two out of three bonds are amortizing. The purpose
of the debt is to fund the Republic's financing deficit and to
strengthen its liquidity position. The outstanding amount of the
bonds in circulation is RUB3 billion.

Ratings Rationale

Chuvashia's ratings reflect the republic's limited own-source tax
revenue due to the underdevelopment and volatility of the
regional economy, the growing rigidity of its operating
expenditure (mainly public salaries and benefits) and its weak
liquidity position, which is not sufficient to mitigate short-to-
medium term refinancing needs. These factors are partially offset
by the region's sound financial performance in 2011 expected to
be replicated in 2012, only moderate debt burden, which is
expected to remain stable over the medium term, its modest
interest costs and its contained financing deficits.

Principal Methodologies

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

Chuvashia Republic is situated in European Russia, its population
is 1,250 million and its gross regional product (GRP) accounts
for around 0.4% of Russia's gross domestic product (GDP), while
GRP per capita is around 50% of the national average. The
republic's economy is comparatively diverse: trade and services
account for around 47% of GRP, industry for 35%, construction for
10% and agriculture for 8%.


BANCO ESPANOL: Moody's Reviews 'D' Standalone BFSR for Upgrade
Moody's Investors Service has placed on review for upgrade all
ratings of Banco Espa¤ol de Credito S.A. (Banesto): the
Baa3/Prime-3 long-term and short-term debt and deposit ratings,
the D standalone bank financial strength rating (BFSR) equivalent
to a ba2 standalone credit assessment, the (P)Ba1 subordinated
debt rating, and the B1 preferred shares rating.

The review for upgrade follows the announcement by Banco
Santander, S.A. (Baa2; C-/baa2 negative) on December 17, 2012,
whereby it has approved to merge and fully absorb Banesto, in
which it has a 89.74% stake. The minority shareholders of Banesto
will receive shares of Banco Santander with a premium of close to
25%, based on market prices at December 14, 2012. The merger of
Banesto is part of Banco Santander's plan to rationalise its
operations in Spain, to adapt to the country's difficult
operating environment and leverage on the synergies that are
expected to be generated with the merger.

The acquisition has no impact on Banco Santander's Baa2; C-/baa2

Ratings Rationale

The review for upgrade reflects the positive implications of
integrating Banesto into a much larger banking group with
stronger financial fundamentals relative to those exhibited by
Banesto. The difference in credit quality is highlighted by the
gap (three notches) between Moody's standalone credit assessments
of both banks (Banco Santander, C-/baa2; Banesto, D/ba2). Moody's
expects to withdraw the ratings of Banesto, as the entity will
cease to exist upon completion of the merger transaction, which
is expected to be effective in May 2013. As a result of the
completion of the merger, the deposit and debt obligations of
Banesto will be assumed by Banco Santander.

Although there is already some degree of integration between
Santander and Banesto, Santander expects this restructuring to
generate cost savings equivalent to 10%, or about EUR420 million
in the third year. Moreover, revenues are expected to increase by
EUR100 million, providing total annual pre-tax synergies of
EUR520 million from the third year. Restructuring costs (platform
migration, IT, rebranding, headcount reduction etc) amount to
EUR400 million after taxes.

The transaction has a neutral impact on Santander's consolidated
solvency levels which at end of September stood at 10.8% (core

The ratings of Banco Santander are not therefore affected by this

Focus of the Review

Moody's rating review will focus on any changes to the current
merger plan, which remains subject to approvals by Banco
Santander's board and general shareholders meeting, as well as by
relevant public authorities.

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

Headquartered in Madrid, Spain, Banesto had total consolidated
assets of EUR99.95 billion as of September 30, 2012.

Headquartered in Madrid, Spain, Banco Santander had total
consolidated assets of EUR1,300 billion as of September 30, 2012.

* SPAIN: Fitch Puts Long-Term IDRs on Four Banks on Watch Neg.
Fitch Ratings has placed the Long-term Issuer Default Ratings
(IDRs), Support Ratings and Support Rating Floors (SRF) of Banco
Mare Nostrum, S.A. (BMN), Banco Grupo Caja 3 (BCaja3), Liberbank,
S.A. and Liberbank's 75%-owned banking subsidiary Banco Castilla-
La Mancha (Banco CLM) on Rating Watch Negative (RWN).  At the
same time, Fitch has downgraded the Viability Ratings (VR) of
BMN, BCaja3 and Liberbank to 'f from 'ccc'.


The RWN reflects Fitch's view that under the context of the large
scale restructuring of the Spanish financial system, closely
monitored by the European Commission (EC), these banks will
decrease in size and become less systemically important.  Also,
Fitch expects the propensity to support an entity that has
already received state assistance to diminish. Banco CLM's Long-
term IDR and Support Rating are on RWN, driven by the RWN on


The downgrade of the VRs of BMN, BCaja3 and Liberbank to 'f' from
'ccc' is based on the approval by the EC of their respective
restructuring plans which involve state aid.  Under Fitch's
rating definitions and criteria, these banks have failed, and
would have defaulted had they not received extraordinary support.

Fitch considers extraordinary support received by the banks to
take the form of the following: any form of public capital
support either in the form of direct capital injections or the
issue of Contingent Convertible Bonds (CoCos), Subordinated
Liability Exercises (SLEs or burden-sharing by subordinated and
hybrid debt holders) and the transfer of real estate assets to an
Asset Management Company (Sareb).  All these actions have been
agreed as conditions in the Memorandum of Understanding (MoU)
signed between Spain and the Eurogroup on July 2012.

BMN will receive EUR730 million in ordinary share capital from
Spain's Fund for Orderly Bank Restructuring (FROB), once SLEs and
the transfer of real estate assets to Sareb are considered. At
the same time, BMN has EUR915 million in convertible preferred
stock subscribed by the FROB.

BCaja3 will receive EUR407 million of CoCos after transferring
real estate assets to Sareb and conducting SLEs.  The December
20, 2012 EC press release approving the banks' restructuring
plans states that BCaja3 will be fully integrated into Ibercaja
Banco, S.A. (not rated by Fitch).

Liberbank will receive EUR124 million of CoCos and will have to
transfer assets to Sareb and conduct SLEs. Banco CLM's IDRs are
in line with those of its 75% parent, Liberbank (and have been
affirmed at that level), because Fitch considers it as a core
subsidiary of the group.


BMN's, BCaja3's and Liberbank's IDRs, SR and SRF are sensitive to
any change in Fitch's assumptions around the level of support
available to the banks or to a downgrade of the Spanish sovereign
rating.  Unless integrated into a much larger, stronger banking
group, there is little likelihood that these banks' Support
Ratings will be upgraded.

In the longer term and under Fitch's 'higher of' rating approach,
these banks' IDRs will ultimately reflect Fitch's opinion of
their default risk based on the higher of a) their VRs and b) the
likelihood that banks would be supported, if needed.

Fitch expects to resolve the RWNs once it has been able reassess
the banks' credit risk and financial profile and its systemic
importance following restructuring and recapitalization.

If BCaja3 advances in its merger plan with Ibercaja Banco, S.A.,
the IDRs could be based on support from the new parent.  Fitch
will then reassess its Support Rating, SRF and IDRs. While the
merger is expected for Q113, it could take place subsequent to
six months afterwards.


Once support measures are executed, the agency will reassess the
banks' VRs and upgrade them to a level commensurate with their
post-support credit and financial profile.  The initial scope for
this upgrade is likely to be constrained by weak economic
conditions and by the close relationship between sovereign and
bank ratings.


The subordinated debt and preference shares of these institutions
and their subsidiaries (as applicable) are rated at 'CC' and 'C',
respectively, as these form part of the burden sharing of losses
and is considered by Fitch to be a distressed debt exchange.  The
ratings of these issues will be withdrawn once they have been
extinguished in the exchange.

The rating actions are as follows:


  -- Long-term IDR: 'BB+', placed on RWN
  -- Short-term IDR: affirmed at 'B'
  -- Viability Rating: downgraded to 'f' from 'ccc'
  -- Support Rating: '3', placed on RWN
  -- Support Rating Floor: 'BB+', placed on RWN
  -- Commercial Paper Long-term rating: affirmed at 'BB+', placed
     on RWN
  -- Commercial Paper Short-term rating: affirmed at 'B'
  -- Senior unsecured debt Long-term rating: affirmed at 'BB+',
     placed on RWN
  -- Senior unsecured debt Short-term rating: affirmed at 'B'
  -- Subordinated lower Tier 2 debt: affirmed at 'CC'
  -- Preferred stock: affirmed at 'C'
  -- State-guaranteed debt: affirmed at 'BBB'
  -- Covered bonds: The impact, if any, on BMN's covered bonds
     will be covered in a separate comment.


  -- Long-term IDR: 'BB+', placed on RWN
  -- Short-term IDR: affirmed at 'B'
  -- Viability Rating: downgraded to 'f' from 'ccc'
  -- Support Rating: '3', placed on RWN
  -- Support Rating Floor: 'BB+', placed on RWN
  -- Subordinated lower Tier 2 debt: affirmed at 'CC'


  -- Long-term IDR: 'BB+', placed on RWN
  -- Short-term IDR: affirmed at 'B'
  -- Viability Rating: downgraded to 'f' from 'ccc'
  -- Support Rating: '3', placed on RWN
  -- Support Rating Floor: 'BB+', placed on RWN
  -- State-guaranteed debt: affirmed at 'BBB'

Banco CLM:

  -- Long-term IDR: 'BB+', placed on RWN
  -- Short-term IDR: affirmed at 'B'
  -- Support Rating: '3', placed on RWN
  -- Senior unsecured debt: 'BB+', placed on RWN
  -- Subordinated lower Tier 2 debt: affirmed at 'CC'
  -- Subordinated upper Tier 2 debt: affirmed at 'C'

U N I T E D   K I N G D O M

ATRAVERDA: In Administration; 44 Jobs at Risk
BBC News reports that Atraverda which is due to go into
administration have been warned jobs will be lost.

Atraverda employs 44 people on the Roseheyworth business park
near Abertillery, BBC discloses.

Production at the factory stopped in November and an offer for
the company has failed to go through, BBC relates.

BBC notes that workers have been told to expect a "significant
redundancy round".

BBC relates that chief executive Graham Ryan said: "The company
has had a really good year bringing its technology onto a
commercial footing."

"There are field trials of products currently running in a number
of countries with prospective customers showing commercial
interest in incorporating the batteries into their own product

"Unfortunately, we required further development funding to reach
that goal which in the current financial climate has proved
impossible to secure."

Atraverda has given notice of its intention to appoint
administrators James Cowper, BBC says.

According to BBC, Peter Whalley -- --
head of restructuring and insolvency at James Cowper, said: "It
is a shame that a company which appeared to be making such great
strides in developing new technology to improve a product as
ubiquitous as the lead/acid battery has had to take this step.

"Nevertheless, we shall be starting an extensive marketing
campaign to find a buyer for Atraverda's ceramic bipolar battery
production capability in the New Year."

Atraverda is a Blaenau Gwent-based battery maker.

BROADGATE FINANCING: S&P Raises Rating on Class D Notes From BB-
Standard & Poor's Ratings Services affirmed and removed from
CreditWatch negative its credit ratings on Broadgate Financing
PLC's class A1, A2, A3, and A4 commercial mortgage-backed notes.
"At the same time, we raised the ratings on the class B, C1, C2,
and D notes," S&P said.

Broadgate Financing is a single-loan transaction, which closed in
March 2005 and was secured by 15 office buildings in the
Broadgate office estate, adjacent to Liverpool Street station in
London. The current securitized loan balance is GBP1.8 billion,
down from GBP2.08 billion at closing.

"The transaction consists of one loan, divided into eight
subtranches that match each class of notes issued. Five of the
tranches (A2, A3, A4, B, and C2) were advanced on a fixed-
interest rate while the others were on a floating basis. The
notes have a range of expected legal final dates of 2022 to 2036.
The loan (and ultimately the notes) amortizes over the life of
the transaction, except for the A4 subtranche, which has a bullet
payment at maturity," S&P said.

"We placed the ratings on the class A1, A2, A3, and A4 notes on
CreditWatch negative in December 2012, following the
implementation of our new commercial mortgage-backed securities
(CMBS) criteria," S&P said.

"The Broadgate Estate is a 30-acre estate in the City of London,
consisting of 15 office properties within the securitization.
These include two assets substituted into the transaction in
2010: 201 Bishopsgate and Broadgate Tower. Both of these
properties were recently built to the highest environmental and
sustainability standards and, in our opinion, comprise high-
quality office accommodation with good-size floor plates which
have the ability to attract suitable tenants for their locations.
We consider that this is reflected in their low vacancy rates and
tenant line-up. Several major tenants have long-term leases,
including Mayer Brown LLP, Henderson Group PLC, and Reed Smith,"
S&P said.

"A large proportion of the tenants in the estate are from the
banking and financial sector -- UBS contributes approximately 24%
of the current rental income. The weighted-average unexpired
lease term is currently eight years and, in our view, the
property managers have demonstrated their ability to manage the
estate well; 201 Bishopsgate was recently let to Alpari and
Broadgate Tower to William Blair International. We believe that
the introduction of a Crossrail station opposite the 100
Liverpool Street building in the future will further enhance the
estate's ability to attract tenants," S&P said.

"In our view, the portfolio valuation has been positively
affected by the current rental growth and forecasted rental
growth for the prime City of London office sector. In addition,
this sector has seen high capital appreciation and falling cap
rates as a result of a large volume of foreign investment into
Central London from a range of pension funds, sovereign wealth
funds, and high-net-worth individuals. This is reflected by the
reported value dated March 31, 2012, of GBP2.66 billion, up from
the GBP1.82 billion value in December 2009. This new external
valuation gives a current loan-to-value (LTV) ratio of 68%," S&P

"In our analysis, we considered the effect of scheduled
amortization on the LTV levels at different stages throughout the
life of the transaction. We focused on the refinancing prospects
of the amount of debt at multiple time periods and across each
different class of notes. At present, there are quarterly
amortization payments of approximately GBP11.7 million for the
class A2, C1, and D notes," S&P said.

"We also analyzed the properties' cash flows and their ability to
sustain interest and debt coverage in a range of stressed
scenarios. These scenarios included looking at increased vacancy
rates and stressed rental levels. In our opinion, the high-
quality nature of the assets and their location, as well as
proactive asset management initiatives, mean we do not consider
the lower classes of notes to be susceptible to future potential
cash flow disruptions," S&P said.

"In our opinion, the scheduled amortization is sufficient to
reduce the LTV ratio to a level which we consider could be
refinanced at maturity. In addition to this, we anticipate that
the range of note maturities for the class A notes will extend
the workout period in a favorable jurisdiction, should one class
fail to refinance or repay at maturity. We have therefore
affirmed our ratings on the class A1, A2, A3, and A4 notes and
removed them from CreditWatch negative," S&P said.

"In light of our view on value and the sustainable interest and
debt coverage, we consider the credit and cash flow risk to have
reduced. Therefore, we have raised the ratings on the class B,
C1, C2, and D notes to reflect our view of their relative
creditworthiness," S&P said.


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

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


Class                      Rating
                    To               From

Broadgate Financing PLC
EUR2.08 Billion Commercial Mortgage-Backed Fixed- And Floating-
Rate Notes

Ratings Raised

B                   AA-              A (sf)
C1                  BBB              BB(sf)
C2                  BBB              BB (sf)
D                   BBB-             BB-

Ratings Affirmed and Removed From CreditWatch Negative

A1                  AAA (sf)         AAA (sf)/Watch Neg
A2                  AAA (sf)         AAA (sf)/Watch Neg
A3                  AAA (sf)         AAA (sf)/Watch Neg
A4                  AAA (sf)         AAA (sf)/Watch Neg

DECO 2005: S&P Lowers Rating on Class H Notes to 'CCC-'
Standard & Poor's Ratings Services lowered to 'CCC- (sf)' from
'B- (sf)' its credit rating on DECO Series 2005-Pan Europe 1
PLC's class H notes. The class G notes remain unaffected by the
rating action.

"The rating action follows the interest shortfalls that occurred
on the class G and H notes on the October 2012 payment date, and
reflect our assessment of the issuer's ability to pay interest
and principal on the class notes on future payment dates. Our
rating action has not resulted from a change in our opinion of
the probability of default and likely recovery prospects of the
remaining loan backing the transaction. Our ratings address
timely payment of interest and payment of principal no later than
the legal final maturity date in July 2014," S&P said.

"In our opinion, the interest shortfalls experienced on the class
G notes, combined with repayment obligations to the liquidity
facility, are likely to lead to future principal shortfalls on
the class H notes. The priority of payments within this
transaction allows for both due and overdue interest on senior
ranking notes to be repaid, prior to principal balances on lower-
ranked bonds. As such, upon future loan repayment, we anticipate
principal losses to be experienced on the class H notes,
following repayment of overdue interest on the class G notes,"
S&P said.

"Our rating on the class G notes remains unaffected by the rating
action because the recent interest shortfall is minor, and we do
not consider this class of notes to be at risk of principal
losses going forward. Further, we anticipate that the class will
be paid all due/overdue interest and principal in full, following
the sale of the remaining property," S&P said.

"We have lowered to 'CCC- (sf)' from 'B- (sf)' our rating on the
class H notes to reflect our opinion that this class of notes has
become more vulnerable to any future principal losses," S&P said.

"DECO Series 2005-Pan Europe 1 is a U.K. commercial mortgage
backed securities (CMBS) transaction, which closed in August
2005. The transaction was originally secured by seven loans.
Since closing, six loans have fully repaid. The remaining loan is
secured against a single, multifamily housing property in Kiel,
Germany. The loan failed to repay at loan maturity and is
currently in special servicing," S&P said.


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

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


Class             Rating
            To               From

DECO Series 2005-Pan Europe 1 PLC
EUR897.066 Million Commercial Mortgage-Backed Variable and
Floating-Rate Notes

Rating Lowered

H           CCC- (sf)        B- (sf)

Rating Unaffected

G           BB- (sf)

EXPRO HOLDINGS: Moody's Affirms 'Caa1' Corp. Family Rating
Moody's Investors Service has affirmed the Caa1 Corporate Family
Rating (CFR) and Probability of Default Rating (PDR) of Expro
Holdings UK 3 Limited. It also affirmed the B3 rating of the
senior secured US$1.4 billion notes due 2016. The outlook on the
ratings is revised to stable from negative.

Ratings Rationale

The rating action follows Expro's stronger performance so far in
the year ending March 2013, with Ebitda, operating cash flow
generation and covenant headroom above Moody's expectations.
Moody's currently expects leverage to fall by over 1x in FY2013.
It also incorporates Moody's view that the company's near-term
market outlook is positive and that continued improved operating
performance is likely to lead to further deleveraging.

The Caa1 CFR reflects the material weight that Moody's has given
to Expro's high level of indebtedness. Moody's expects leverage
(as adjusted by Moody's) to end FY2013 at around 7x and negative
free cash flow for FY2013, in large part due to Expro's high
interest burden and an increased capex spend associated with the
cyclical upturn. The stable outlook nevertheless reflects Moody's
view that improved operating performance in FY2013 and the US$410
million debt repayment after the sale of the C&M division in May
have reduced near-term liquidity risks, supported by the
company's contract backlog and a positive operating environment.
Moody's notes the past support of the shareholders in terms of
funding growth in the business. Nevertheless, given the accretion
of a portion of the mezzanine interest, Expro's net debt and
leverage will only continue falling if it can maintain Ebitda
growth, which depends to some extent on the global economic

At this time, Moody's believes that the company's liquidity
profile should remain satisfactory over the next 12 months,
factoring in the existing cash balance, the Revolving Credit
Facilities (RCF) and negligible near-term debt maturities.
Following the disposal of the C&M division, Expro reported cash
of US$94 million at September 30, 2012 and the US$160 million RCF
remains undrawn. Moody's expects negative free cash flow in
FY2013 to turn around in FY2014 due to increased Ebitda and lower
capex. However, Moody's cautions that working capital swings in
FY2013 have been larger than Moody's anticipated. There is no
debt amortization or refinancing requirement until the revolver
matures in December 2014 and covenant compliance is currently
acceptable, although covenants tighten on a quarterly basis.

Positive rating pressure is possible if Expro reduces leverage
materially below 7.0x on a sustained basis with sufficient
headroom under the bank covenants and continued access to the
RCF, which will also need to be refinanced on a timely basis.
Market trends would also need to be positive, to support an
expectation of further deleveraging. Negative pressure on the
ratings could occur if earnings deteriorate and/or if covenant
headroom weakens, or if other liquidity concerns emerge.

The principal methodology used in rating Expro Holdings UK 3
Limited and Expro Finance Luxembourg S.C.A. was the Global
Oilfield Services Rating Methodology published in December 2009.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Headquartered in the United Kingdom, Expro is a leading provider
of services and products to the upstream oil and gas industry.
About 25% of revenue is from onshore markets and about 75% from
offshore markets. In July 2008, the company was bought by a
private equity consortium led by Arle Capital Partners (formerly
named Candover Partners) and GS Capital Partners VI Fund, L.P.
For the year ending March 2012, the Expro group reported revenue
of about US$1 billion.

* UK: More Retailers to Face Insolvency, Begbies Traynor Says
Roland Gribben at The Telegraph reports that Begbies Traynor said
more major national and regional retail chains are facing
insolvency while thousands of smaller operators are in danger of
going under in the run up to another tough trading year.

The business recovery group is anticipating more retail
casualties as Christmas trading unwinds, the Telegraph discloses.
It estimates that almost 140, mainly small retailers, are in a
financially critical situation at a time when they should have
been at their trading peak, the Telegraph notes.

But research shows another 13,700 were registering significant
financial distress between October 1 and December 17, an increase
of 35%, the Telegraph says.  There was a marked 85% jump in the
total of books, news and stationery businesses in trouble while
the number of pharmaceutical and personal care companies
struggling was up by 80pc and the proportion of drinks firms
signaling a downturn was 38% higher, the Telegraph states.

According to the Telegraph, Comet has been the biggest retail
casualty so far but Julie Palmer -- julie.palmer@begbies- -- a Begbies Traynor partner, says that with
thousands of smaller and specialist retailers struggling to stay
afloat in 'Austerity Britain' the performance of national
retailers is "just the tip of the iceberg."

Ms. Palmer, as cited by the Telegraph, said: "While many of these
zombie retailers may survive thanks to last minute spending
before Christmas and with quarterly rent day landing on December
25 combined with fierce competition and significant market
pressure throughout the January sales period as consumers tighten
their belts after Christmas we could well see a surge of new
insolvency activity during the first quarter of 2013."

* Cable Mulls Insolvency Process Overhaul After Comet's Collapse
Simon Neville at The Guardian reports that UK Business Secretary
Vince Cable said that the government is considering a radical
overhaul to the insolvency process in the wake of Comet's

According to the Guardian, answering business questions from MPs,
Mr. Cable said that the demise of the electricals retailer had
caused "great distress" and hinted that it might be necessary to
rethink the UK's insolvency regime after reports that
administrators made millions out of the collapse.  But he added
that a report into the affair would not be made public, the
Guardian notes.

The Guardian relates that Shadow Business Secretary Chuka Umunna
said the private investment firm OpCapita, which owned Comet, had
"very serious questions to answer" after the company closed its
doors this week with the loss of nearly 7,000 jobs.  The Guardian
notes that Mr. Umunna was particularly concerned "given that in
less than a year the owners appear to have lost the GBP50 million
dowry they received to buy the business and left the taxpayer
with a GBP49.4 million bill".

According to the Guardian, Mr. Cable agreed: "I take these
allegations very seriously and that's why I've asked my
department to conduct a thorough inquiry with the powers they

However, he indicated that the report would remain secret under
the 1985 Companies Act, which says that "information gathered
during the course of an investigation is confidential, and
criminal penalties attach to its unlawful disclosure".

Mr. Cable added: "This episode reveals wider possible failures in
the system and there may well be better ways of handling
insolvency, though I think it's fair to say in general the
British insolvency regime is regarded as one of the best

Total payments to the administrators and lawyers working on the
Comet collapse, including accountancy firm Deloitte, have been
estimated at GBP10.4 million, the Guardian discloses.

Mr. Cable, as cited by the Guardian, said: "We are specifically
going to have a look initially at a narrow issue around
insolvency practitioners and their fees.  We should be open-
minded to other approaches.  The American chapter 11 system may
well be better and I want to have a proper look at that."

According to the Guardian, answering business questions from MPs,
Mr. Cable added: "The collapse of the Comet chain has caused
great distress.

"It's not just the direct job losses, it's the supply companies
and there is a large amount of unpaid credit."

Headquartered in Rickmansworth, Comet is an electrical retailer.

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


* Upcoming Meetings, Conferences and Seminars

Jan. 24-25, 2013
      Rocky Mountain Bankruptcy Conference
         Four Seasons Hotel Denver, Denver, Colo.
            Contact:   1-703-739-0800;

Feb. 7-9, 2013
      Caribbean Involvency Symposium
         Eden Roc Renaissance, Miami Beach, Fla.
            Contact:   1-703-739-0800;

Feb. 17-19, 2013
      Advanced Consumer Bankruptcy Practice Institute
         Charles Evans Whittaker Courthouse, Kansas City, Mo.
            Contact:   1-703-739-0800;

Feb. 20-22, 2013
         Four Seasons Las Vegas, Las Vegas, Nev.
            Contact:   1-703-739-0800;

Apr. 10-12, 2013
      TMA Spring Conference
         JW Marriott Chicago, Chicago, Ill.

Apr. 18-21, 2013
      Annual Spring Meeting
         Gaylord National Resort & Convention Center,
         National Harbor, Md.
            Contact:   1-703-739-0800;

June 13-16, 2013
      Central States Bankruptcy Workshop
         Grand Traverse Resort, Traverse City, Mich.
            Contact:   1-703-739-0800;

July 11-13, 2013
      Northeast Bankruptcy Conference
         Hyatt Regency Newport, Newport, R.I.
            Contact:   1-703-739-0800;

July 18-21, 2013
      Southeast Bankruptcy Workshop
         The Ritz-Carlton Amelia Island, Amelia Island, Fla.
            Contact:   1-703-739-0800;

Aug. 8-10, 2013
      Mid-Atlantic Bankruptcy Workshop
         Hotel Hershey, Hershey, Pa.
            Contact:   1-703-739-0800;

Aug. 22-24, 2013
      Southwest Bankruptcy Conference
         Hyatt Regency Lake Tahoe, Incline Village, Nev.
            Contact:   1-703-739-0800;

Oct. 3-5, 2013
      TMA Annual Convention
         Marriott Wardman Park, Washington, D.C.

Nov. 1, 2013
      NCBJ/ABI Educational Program
         Atlanta Marriott Marquis, Atlanta, Ga.
            Contact:   1-703-739-0800;

Dec. 2, 2013
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact:   240-629-3300 or

Dec. 5-7, 2013
      Winter Leadership Conference
         Terranea Resort, Rancho Palos Verdes, Calif.
            Contact:   1-703-739-0800;


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.

                 * * * End of Transmission * * *