TCREUR_Public/130118.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, January 18, 2013, Vol. 14, No. 13

                            Headlines



F I N L A N D

WINWIND: Aims Out-of-Court Settlement with Creditors


F R A N C E

* FRANCE: Business Failures Up 12.5% to 16,000


G R E E C E

* GREECE: IMF Approves EUR3.3-Bil. Loan Tranche


I R E L A N D

HMV GROUP: Irish Operations Put Into Receivership


I T A L Y

BORMIOLI ROCCO: Moody's Lowers CFR to 'B2'; Outlook Stable
MPS CAPITAL: Amendment No Negative Rating Impact on Siena Notes
SIENA LEASE: Moody's Says Amendment No Negative Rating Impact


N E T H E R L A N D S

DUTCH MBS XVIII: Moody's Assigns '(P)Ba2' Rating on Class E Notes
INVESCO MEZZANO: S&P Lowers Rating on Class C Notes to 'BB+'
STORM 2013-1: Fitch Assigns 'BB' Rating to Two Notes Classes


P O R T U G A L

* PORTUGAL: Moody's Says Banking System Outlook Remains Negative


R O M A N I A

HIDROELECTRICA: Administrator Cuts 154 Jobs Under Reorganization


R U S S I A

ABSOLUT BANK: Moody's Reviews 'Ba3' Deposit Ratings for Downgrade
LENTA LIMITED: Moody's Assigns 'B1' CFR; Outlook Stable


S P A I N

UNION FENOSA PREFERENTES: Fitch Affirms 'BB' Sub. Debt Rating


U K R A I N E

BIZ FINANCE: Fitch Assigns 'B(EXP)' Rating to Fixed-Rate Notes
UKREXIMBANK: Moody's Rates Foreign Curr. Sr. Unsecured Notes 'B3'


U N I T E D   K I N G D O M

BLOCKBUSTER UK: In Administration; Deloitte Seeks Buyer
BUSH DEVELOPMENTS: In Administration; Has GBP.9-Mil. Deficit
DRAX POWER: S&P Downgrades Corporate Credit Rating to 'BB'
HMV GROUP: Music Retail Chain Enters Administration
QHOTELS GROUP: Put Into Administration Under Refinancing Deal

VOYAGE CARE: Moody's Cuts Senior Secured Notes Rating to '(P)B2'
* Higher UK Bank Leverage Ratio Challenging for Some, Fitch Says


X X X X X X X X

* BOOK REVIEW: Corporate Venturing -- Creating New Businesses


                            *********



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F I N L A N D
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WINWIND: Aims Out-of-Court Settlement with Creditors
----------------------------------------------------
Kasper Viita at Bloomberg News reports that Winwind's creditors
are seeking the company's bankruptcy.

According to Bloomberg, newspaper Kymen Sanomat said that the
company aims to settle with creditors outside of court.

Winwind expects large order during spring, Bloomberg discloses.

Winwind is a Finnish wind power company.



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F R A N C E
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* FRANCE: Business Failures Up 12.5% to 16,000
-----------------------------------------------
According to Bloomberg News' John Simpson, Les Echos, citing a
report by business information group Altares, reported that more
than 16,000 business failures have been registered in France, a
rate not seen since worst moments of the fiscal crisis.

The failures are 12.5% higher than yr-earlier quarter, Bloomberg
notes.

Echos said the failures rose by 2.7% Yr/yr to 59,780, threatening
approximately 245,000 jobs, below 2009 record but above pre-
crisis level, Bloomberg relates.

According to Bloomberg, Echos said that Altares doesn't see a
change in the trend before summer.



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G R E E C E
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* GREECE: IMF Approves EUR3.3-Bil. Loan Tranche
-----------------------------------------------
Ian Talley at Dow Jones Newswires reports that the International
Monetary Fund approved a EUR3.3 billion (US$4.3 billion) loan
tranche to Greece as expected Wednesday, giving the official
sign-off to the controversial program.

The IMF had stalled approval for nearly a year as it pushed
Europe to restructure the country's debt and pressed Athens for
more economic policy changes, Dow Jones notes.

The country has taken major steps to cut spending and reduce its
deficit, and IMF Managing Director Christine Lagarde said the
bailout program is now moving in the right direction, Dow Jones
relates.

According to Dow Jones, Ms. Lagarde said, "Forceful structural
reforms and broad-based domestic support will be needed to meet
challenges, alongside long-term support from Greece's European
partners."

Although political tensions are already strained to near the
breaking point in the emaciated Greek economy, economists say
it's critical for the county's future that Athens implements the
budget and economic policies required under the loan deal, Dow
Jones notes.  If Greece is able to balance its budget this year,
the country could see its debt stock cut down to levels that
won't suffocate the economy, according to Dow Jones.  European
authorities, who now own the lion's share of Greek sovereign
debt, have said they will consider further cuts in Greece's debt
bills if it meets the bailout targets outlined by the IMF and the
euro zone, Dow Jones relates.

Ms. Lagarde, as cited by Dow Jones, said it's crucial that Greece
tackles major barriers to competition and deliver on its
privatization program.  According to Dow Jones, she also said
Athens needs to "radically overhaul its tax administration to
bolster tax collections, fight tax evasion, and shrink the public
sector, in particular through targeted redundancies."

Furthermore, she called for additional financing from euro area
member states to allow Greece to redeem treasury bills from
banks, which would help restart a broken financial system, Dow
Jones discloses.



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I R E L A N D
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HMV GROUP: Irish Operations Put Into Receivership
-------------------------------------------------
BBC News reports that two HMV stores in the Republic of Ireland
are staging sit-in protests following the closure of the music
and DVD chain's 16 outlets in the country.

The workers at the two Limerick shops are attempting to secure
the payment of wages they are owed, BBC discloses.

HMV's operation in the Irish Republic, which employs 300 people,
has been put into receivership, BBC relates.

HMV's main UK business, including 10 stores in Northern Ireland,
is continuing to trade in administration, BBC notes.

The retailer has 223 UK stores in total, and a workforce of about
4,000.

According to BBC, HMV's administrator, accountancy group
Deloitte, said it would try to sell the Irish shops.

Deloitte, which has also been appointed receiver of HMV's
business in the Republic of Ireland, said that the 16 store
closures followed "a request from the directors [of HMV]" to
close down the Irish operation, BBC relates.

"All efforts will be made by the receiver to secure a purchaser
for the [Irish] stores," BBC quotes Deloitte as saying.

Music and games retailer HMV's main UK business went into
administration on Tuesday, BBC recounts.  It had struggled for a
number of years against growing competition from online rivals,
supermarkets, and illegal downloads, BBC discloses.

United Kingdom-based HMV Group plc is engaged in retailing of
pre-recorded music, video, electronic games and related
entertainment products under the HMV and Fopp brands, and the
retailing of books principally under the Waterstone's brand.  The
Company operates in four segments: HMV UK & Ireland, HMV
International, HMV Live, and Waterstone's.



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I T A L Y
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BORMIOLI ROCCO: Moody's Lowers CFR to 'B2'; Outlook Stable
----------------------------------------------------------
Moody's Investors Service has downgraded Bormioli Rocco Holdings
S.A's corporate family rating (CFR) to B2 from Ba3. The
probability of default rating (PDR) has been downgraded to B2-PD.
Concurrently, the rating for the EUR250 million senior notes
issued by Bormioli Rocco Holdings S.A (due 2018) has also been
downgraded to B3 from B1. The outlook on the ratings is stable.

The ratings downgrade reflects: (i) the significant deterioration
in Bormioli's operating performance in 2012 due to a combination
of weak demand as well as the operational issues affecting its
manufacturing facilities; (ii) the materially negative free cash
flow (FCF) generation in the first nine months of 2012,
exacerbated by the increase in capital expenditure due to the
Bergantino furnace re-build and the increase in company's
adjusted gross debt/ EBITDA (calculated by Moody's) to 4.3x for
the last twelve months ended September 30, 2012, from 3.4x at the
end of fiscal year (FY) ending December 31, 2011. The downgrade
also takes into account Moody's expectations that continued
difficult trading conditions for Bormioli in 2013 will prevent a
near-term return to visible FCF generation.

While the agency does not anticipate the macro-economic
environment to visibly improve in Bormioli's key markets in 2013,
the stable ratings outlook reflects Moody's expectation that
there will be a degree of recovery in Bormioli's EBITDA and
credit metrics in 2013 due to the absence of furnace leakages and
cost benefits accruing from the expected successful
implementation of its operational improvement programs.

Ratings Rationale

Bormioli's reported revenues and 'consolidated EBITDA' of EUR422
million and EUR52 million for the first nine months of 2012
declined by 1% and 27% year-on-year respectively compared to the
first nine months of 2011. While reported EBITDA for the first
six months of 2012 declined by 24%, performance of the company
was particularly weak in Q3 2012 with a 36% year-on-year decline
in EBITDA. Q3 2012 reported EBITDA margin was close to 10%
(compared to 15.5% in Q3 2011).The significant deterioration in
Bormioli's EBITDA primarily resulted from (i) the company's
inability to cover higher input costs; (ii) the scheduled plant
stoppages in 2012 to reduce inventory levels in a weak demand
environment; (iii) lower operational efficiency in the Tableware
(representing 25% of the group's reported EBITDA for the first
nine months of 2012 before non-segmental overheads), Food &
Beverage (9%), and Perfumery & Cosmetics (4%) divisions; and the
(iv) interruption of production at the Bergantino furnace.

Given the poor performance of the Bergantino furnace after a
leakage earlier in 2012, the company decided to re-build the
furnace sooner than its original plan foresaw, and completed most
of the re-build in Q3 2012. This caused Bormioli's reported capex
to increase by 22% year-on-year to EUR26 million during the first
nine months ended September 30, 2012. This increased capex in
combination with a weak EBITDA led to materially negative free
cash flow generation of 26 million (after interest paid and
extraordinary items -- as reported by the company) for the
period. Bormioli's reported net debt/ consolidated EBITDA
consequently deteriorated to 3.7x at the end of September 2012
(compared to 2.5x for FY2011) which mapped to Moody's adjusted
gross debt/ EBITDA of 4.3x for the last twelve months ending
September 30, 2012 (compared to 3.4x for FY 2011). For the full
FY2012, Moody's expects Bormioli's adjusted gross debt/ EBITDA (
as calculated by Moody's) to be around 4.5x.

Moody's believes that pricing pressure will continue in
Bormioli's markets and expects no material improvement in
Bormioli's overall trading conditions in 2013. Nevertheless, the
agency anticipates some recovery in Bormioli's credit metrics in
FY2013, helped by better EBITDA generation as (i) there should be
no furnace leakages unlike in 2012; (ii) the operational
improvement projects should provide some cost benefits; (iii) the
start of the new borosilicate furnace (re-built Bergantino
furnace) should support the Pharma division (62% of reported
EBITDA for the first nine months of 2012 before non segmental
overheads); and (iv) the company will remain focused on
innovation and penetrating growth markets in North America and
Eastern Europe.

Moody's views Bormioli's liquidity profile as adequate for its
current requirements. As of September 30, 2012, the company had
EUR17.5 million cash and cash equivalents. Bormioli is currently
finalizing an agreement with its banks to extend the maturity of
the EUR15 million RCF expiring in 2013 and increase covenant
headroom. Moody's ratings and outlook assume that the company
will be successful in its negotiations and will continue to
maintain adequate headroom under the revised covenants. Moody's
also understands that Bormioli has recently secured new committed
credit lines of EUR14.5 million maturing in 2014 and is in the
process of securing additional committed short term lines with
its banks. The company has no debt maturities before 2018.

What Will Change The Rating UP/DOWN

Positive rating pressure could build if Bormioli were able to (i)
successfully execute on operational improvements leading to
improved operating performance and profitability as evidenced by
EBITDA margins improving towards mid teens, (ii) reduce its
leverage ratios, including achieving a Gross Debt/EBITDA (as
adjusted by Moody's) ratio below 4x on a sustainable basis; and
(iii) return back to (at-least) neutral free cash flow
generation. An upgrade to B1 would also require the company to
demonstrate continued diversification further away from the
group's stronghold in South-western Europe.

Downward rating pressure could develop if the group's
profitability were to come under further pressure, for example
from continued operational problems, resulting in EBITDA margins
declining to below 10% and continued negative free cash flow
generation. Also, leverage in terms of Gross Debt/EBITDA (as
adjusted by Moody's) weakening above 5.5x would put pressure on
the rating as could the company's inability to secure a maturity
extension and covenant reset on its EUR15 million RCF currently
due in 2013 in the absence of alternative committed financing.

Principal Methodology

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

Bormioli is an Italy based producer of glass and plastic
packaging products used in the pharmaceutical and cosmetics
industry as well as in the food & beverage industry. Bormioli is
also a manufacturer of glass tableware for home and professional
use, with strong brand recognition in Italy. The company
generated revenues of EUR555 million and reported 'consolidated
EBITDA' of EUR85 million in FY2011.


MPS CAPITAL: Amendment No Negative Rating Impact on Siena Notes
---------------------------------------------------------------
Moody's Investors Service has determined that the proposed action
(the "Proposal") of MPS Capital Services ("MPSCS", Ba2/NP) to
lower the level of the rating trigger linked to the appointment
of a Back Up Servicer would not, in and of itself, at this time
result in a reduction or withdrawal of the current ratings on the
notes issued by Siena SME 11-1 S.r.l.

Moody's ratings address only the credit risk associated with the
transaction. Other non-credit risks have not been addressed, but
may have significant effects on yield to the investors.

Moody's has assessed the Proposal to lower to Ba3 (from Baa3) the
rating level that would trigger the appointment of a Back Up
Servicer. The new level proposed is consistent with the current
rating on the notes. In assessing the proposal Moody's has had
regard to the rating implementation guidance Global Structured
Finance Operational Risk Guidelines: Moody's Approach to
Analyzing Performance Disruption Risk, published in June 2011.

The methodologies used in this rating were Moody's Approach to
Rating CDOs of SMEs in Europe, February 2007, Refining the ABS
SME Approach: Moody's Probability of Default assumptions in the
rating analysis of granular Small and Mid-sized Enterprise
portfolios in EMEA, March 2009 and Moody's Approach to Rating
Granular SME Transactions in Europe, Middle East and Africa, June
2007.

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
Jan. 16 rating action may be negatively affected.


SIENA LEASE: Moody's Says Amendment No Negative Rating Impact
-------------------------------------------------------------
Moody's Investors Service has determined that the proposed action
(the "Proposal") of the originator (Monte dei Paschi di Siena
Leasing & Factoring, Banca per i Servizi Finanziari alle Imprese
S.p.A. -- "MPS L&F") to lower the level of the rating trigger
linked to the appointment of a Back Up Servicer would not, in and
of itself, at this time result in a reduction or withdrawal of
the current ratings on the notes issued by Siena Lease 11-1
S.r.l.

Moody's ratings address only the credit risk associated with the
transaction. Other non-credit risks have not been addressed, but
may have significant effects on yield to the investors.

Moody's has assessed the Proposal to lower to Ba3 (from Baa3) the
rating level, set on the originator parent company Banca Monte
dei Paschi di Siena S.p.A. (Ba2/NP), that would trigger the
appointment of a Back Up Servicer. The new level proposed is
consistent with the current rating on the notes. In assessing the
proposal Moody's has had regard to the rating implementation
guidance Global Structured Finance Operational Risk Guidelines:
Moody's Approach to Analyzing Performance Disruption Risk,
published in June 2011.

The methodologies used in this rating were Moody's Approach to
Rating Multi-pool Financial Lease Backed Transactions in Italy,
June 2006; Refining the ABS SME Approach: Moody's Probability of
Default assumptions in the rating analysis of granular Small and
Mid-sized Enterprise portfolios in EMEA, March 2009 and Moody's
Approach to Rating Granular SME Transactions in Europe, Middle
East and Africa, June 2007.

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
Jan. 16 rating action may be negatively affected.

Moody's will continue to monitor the ratings. Any change in the
ratings will be publicly disseminated by Moody's through
appropriate media.



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N E T H E R L A N D S
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DUTCH MBS XVIII: Moody's Assigns '(P)Ba2' Rating on Class E Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional credit ratings
to the following classes of notes to be issued by Dutch MBS XVIII
B.V.:

    EUR[] A-1 Notes, Assigned (P)Aaa (sf)

    EUR[] A-2 Notes, Assigned (P)Aaa (sf)

    EUR[] B Notes, Assigned (P)Aa2 (sf)

    EUR[] C Notes, Assigned (P)Aa3 (sf)

    EUR[] D Notes, Assigned (P)A3 (sf)

    EUR[] E Notes, Assigned (P)Ba2 (sf)

The class F notes are not rated by Moody's.

The transaction represents the securitization of Dutch prime
mortgage loans backed by residential properties located in the
Netherlands and originated or acquired by subsidiaries of NIBC
Bank N.V. (Baa3/P-3). The portfolio will be serviced by NIBC.

Ratings Rationale

The ratings of the notes take into account the credit quality of
the underlying mortgage loan pool, from which Moody's determined
the MILAN Credit Enhancement and the portfolio expected loss.

The expected portfolio loss of 0.65% of the portfolio at closing
and the required MILAN Credit Enhancement of 5.4% served as input
parameters for Moody's cash flow model, which is based on a
probabilistic lognormal distribution as described in the report
"The Lognormal Method Applied to ABS Analysis", published in July
2000.

The key drivers for the portfolio expected loss are (i) the
performance of the seller's precedent transactions as well as the
performance on the seller's book, (ii) benchmarking with
comparable transactions in the Dutch RMBS market, and (iii) the
current economic conditions in the Netherlands in combination
with historic recovery data of foreclosures received from the
seller.

The key drivers for the MILAN Credit Enhancement number, in line
with other prime Dutch RMBS transactions which closed during the
past twelve months, are (i) month current data which shows that
85.6% of the loans have never been in arrears since they were
disbursed, (ii) the weighted average loan-to-foreclosure-value
(LTFV) of 88.8%, which is in line with other prime Dutch RMBS
transactions, (iii) the proportion of interest-only loan parts
(62.4%) which is slightly higher than for other prime Dutch RMBS
transactions, and (iv) the weighted average seasoning of 9.1
years which is high relative to the Dutch market.

Approximately 26.2% of the portfolio is linked to life insurance
policies (life mortgage loans), which are exposed to set-off risk
in case an insurance company goes bankrupt. The seller has
provided loan-by-loan insurance company counterparty data,
whereby 61.1% of all life insurance-linked products are linked to
insurance policies provided by group companies of SRLEV N.V.
(Baa1 IFSR), which is part of REAAL Verzekeringen group. Moody's
considered the set-off risk in the cash flow analysis.

The transaction benefits from a non-amortizing reserve fund that
will be funded at 0.5% of the outstanding portfolio from the
proceeds of the class F notes. The reserve account is replenished
before interest payments on the class F notes. Apart from the
reserve fund, the transaction benefits from an excess margin of
50 bps through the swap agreement. The swap counterparty is
Credit Suisse International (A1/P-1). The transaction also
benefits from an amortizing liquidity facility of 1.5% of the
outstanding principal amount of the notes (excluding the class F
notes) with a floor of 0.75% of the principal amount of the notes
at closing (excluding the class F notes). The cash advance
facility is available for as long as the class A1 and class A2
notes are outstanding.

Operational Risk Analysis: Moody's has analyzed the potential
operational risks associated with the servicing and cash
management functions in the transaction. The named servicer in
the transaction is NIBC (Baa3/P-3). NIBC has sub delegated the
loan administration to Stater and Quion (both not rated). If
NIBC's rating falls below Baa3, the issuer and the security
trustee will use best efforts to appoint a back-up servicer.
Furthermore, the issuer and security trustee will appoint a
substitute servicer if the main servicer is no longer able to
service the mortgage loan pool. Moody's views this undertaking to
be similar to a back-up servicer facilitator function. The role
of cash manager in this transaction is also performed by NIBC. If
NIBC's rating falls below Baa3, the issuer and the security
trustee will use best efforts to appoint a back-up cash manager.

Moody's Parameter Sensitivities: At the time the rating was
assigned, the model output indicated that class A2 would have
achieved Aaa if the expected loss was as high as 2.0% assuming
MILAN CE increased to 7.6% and all other factors remained the
same. Class A1 would have achieved Aaa in all tested scenarios.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged and is not intended
to measure how the rating of the security might migrate over
time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

The V Score for this transaction is Low/Medium, which is in line
with the V Score assigned for the Dutch RMBS sector, mainly due
to the fact that it is a standard Dutch prime RMBS structure for
which we have over 13 years of historical performance data on
precedent transactions. The primary source of uncertainty is due
to operational risks relating to the servicing arrangement. The
contractual servicer (NIBC) is rated Baa3/P-3 by Moody's. This
risk is mitigated by the fact that Stater and Quion will be
appointed at closing as sub-agents of NIBC and will perform the
loan administration.

V Scores are a relative assessment of the quality of available
credit information and of the degree of dependence on various
assumptions used in determining the rating. High variability in
key assumptions could expose a rating to more likelihood of
rating changes. The V Score has been assigned according to the
report "V Scores and Parameter Sensitivities in the Major EMEA
RMBS Sectors" published in April 2009.

The principal methodology used in this rating was Moody's
Approach to Rating RMBS in Europe, Middle East, and Africa
published in June 2012.

In rating this transaction, Moody's used ABSROM to model the cash
flows and determine the loss for each tranche. The cash flow
model evaluates all default scenarios that are then weighted
considering the probabilities of the lognormal distribution
assumed for the portfolio default rate. In each default scenario,
the corresponding loss for each class of notes is calculated
given the incoming cash flows from the assets and the outgoing
payments to third parties and noteholders. Therefore, the
expected loss or EL for each tranche is the sum product of (i)
the probability of occurrence of each default scenario; and (ii)
the loss derived from the cash flow model in each default
scenario for each tranche.

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

The rating addresses the expected loss posed to investors by the
legal final maturity of the notes. In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal with respect to the notes by the legal final
maturity. Moody's ratings only address the credit risk associated
with the transaction. Other noncredit risks have not been
addressed, but may have a significant effect on yield to
investors.

Moody's issues provisional ratings in advance of the final sale
of securities, but these ratings only represent Moody's
preliminary credit opinion. Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavour
to assign definitive ratings to the Notes. A definitive rating
may differ from a provisional rating. Moody's will disseminate
the assignment of any definitive ratings through its Client
Service Desk.

Moody's will monitor this transaction on an ongoing basis.


INVESCO MEZZANO: S&P Lowers Rating on Class C Notes to 'BB+'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Invesco Mezzano B.V.'s class B and C notes.  At the same time,
S&P has affirmed its ratings on all other classes of notes in
this transaction.

"The rating actions follow our assessment of the transaction's
performance using data from the trustee report dated Nov. 30,
2012, as well as a cash flow analysis.  We have taken into
account recent developments in the transaction and reviewed the
transaction under our 2012 counterparty criteria," S&P said.

From S&P's analysis, they have observed a fall in the aggregate
collateral balance to EUR319.4 million from EUR327.9 million.
This has decreased the credit enhancement available for all
classes of notes since S&P's previous rating action on Oct. 5,
2011.

The November 2012 trustee report indicates that the
overcollateralization test results for all classes have worsened.
In addition, S&P has observed a deterioration in the credit
quality of the portfolio, such as an increase in defaulted assets
(rated 'CC', C', 'SD' [selective default], or 'D') to 2.3% from
0% and an increase in assets rated in the 'CCC' category ('CCC+',
'CCC', or 'CCC-') to 5.55% from 4.10%.

S&P has also observed that the weighted-average spread the
portfolio generates has increased to 3.63% from 3.20%, and that
the weighted-average life has decreased to 4.2 years from 5.0
years.  In addition, S&P notes that the weighted-average recovery
rates has decreased.

"We subjected the capital structure to a cash flow analysis to
determine the break-even default rate for each rated class.  In
our analysis, we used the reported portfolio balance that we
consider to be performing, the current weighted-average spread
and the weighted-average recovery rates that we considered to be
appropriate.  We incorporated various cash flow stress scenarios
using alternative default patterns, levels, and timings for each
liability rating category, in conjunction with different interest
stress scenarios," S&P added.

Following S&P's cash flow analysis, S&P considers the level of
credit enhancement available to the class B and C notes to be
commensurate with lower ratings than those currently assigned.
S&P has therefore lowered its ratings on the class B notes to 'A-
(sf)' from 'A (sf)' and on the class C notes to 'BB+ (sf)' from
'BBB- (sf)'.

The credit support for the class A, D, and E notes is, in S&P's
opinion, commensurate with its current ratings on these classes.
S&P has therefore affirmed its ratings on the class A, D, and E
notes.

Approximately 8% of the assets in the transaction's portfolio are
non-euro-denominated, while the liabilities are all euro-
denominated.  To mitigate the risk of foreign-exchange-related
losses, the issuer has entered into foreign exchange swap
agreements with Morgan Stanley & Co international PLC
(A/Negative/A-1) as a swap counterparty.  Under S&P 's 2012
counterparty criteria, S&P analysis of the swap counterparty and
its associated documentation indicates that, absent other
mitigants, it cannot support ratings on the notes that are higher
than 'A+ (sf)'.

"To assess the potential impact on our ratings, we have conducted
our analysis without giving benefit to the swap agreements.  We
concluded that, in this scenario, the class A notes would only be
able to achieve a 'A+ (sf)' rating," S&P said.

Invesco Mezzano is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.  The transaction closed in
October 2007 and is managed by Invesco Asset Management Ltd.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class       Rating            Rating
            To                From

Invesco Mezzano B.V.
EUR350.45 Million Senior and Deferrable Interest Floating-Rate
Notes

Ratings Lowered

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

Ratings Affirmed

A           A+ (sf)
D           BB+ (sf)
E           B+ (sf)


STORM 2013-1: Fitch Assigns 'BB' Rating to Two Notes Classes
------------------------------------------------------------
Fitch Ratings has assigned Storm 2013-1 B.V.'s RMBS notes
expected ratings:

EUR150,000,000 Class A1: assigned 'AAAsf(EXP)', Outlook Stable
EUR550,000,000 Class A2: assigned 'AAAsf(EXP)', Outlook Stable
EUR17,100,000 Class B: assigned 'AA-sf(EXP)', Outlook Stable
EUR13,100,000 Class C: assigned 'BBB+sf(EXP)', Outlook Stable
EUR14,500,000 Class D: assigned 'BBsf(EXP)', Outlook Stable
EUR7,500,000 Class E: assigned 'BBsf(EXP)', Outlook Stable

The expected ratings are based on Fitch's assessment of the
underlying collateral, available credit enhancement, the
origination and underwriting procedures used by the seller and
the servicer and the transaction's sound legal structure. Final
ratings are subject to receipt of final documents conforming to
information already received.

This transaction is a true sale securitization of Dutch
residential mortgage loans, originated and sold by Obvion N.V.
(not rated). Since 10th May 2012, Obvion is 100% owned by
Rabobank Group ('AA'/Stable/'F1+') and has an established track
record as a mortgage lender and issuer of securitizations in the
Netherlands. This is the 23rd transaction issued under the STORM
series since 2003.

Credit enhancement for the class A notes is 7.0%, which is
provided by subordination and a non-amortizing reserve fund equal
to 1.0% at closing. The transaction benefits from an amortizing
liquidity facility of 2.0% at closing, a build-up of the reserve
fund to 1.3% and an interest rate swap providing an excess margin
of 50 basis points.

The transaction is backed by a four year seasoned non-revolving
portfolio consisting of prime residential mortgage loans with a
weighted-average (WA) original loan-to-market-value (OLTMV) of
85.8% and a WA debt-to-income ratio (DTI) of 30.8%, both of which
are typical for Fitch-rated Dutch RMBS transactions. The pool
composition is similar to the previous STORM transactions. The
purchase of further advances into the pool is allowed after
closing subject to stringent conditions.

Both the STORM series as well as Obvion's loan book have shown
stable performance in terms of arrears and losses. The 90+ days
arrears of the previous Fitch-rated transactions have been mostly
lower than the Dutch Index throughout the life of the deals.

Rabobank fulfils a number of roles, including collection account
provider, issuer account provider, cash advance facility provider
and commingling guarantor and therefore this transaction relies
strongly on the creditworthiness of Rabobank. In addition
Rabobank acts as back-up swap counterparty through its London
branch. Fitch considers that the swap provides a certain degree
of liquidity and credit support in this transaction and the
replacement of the swap would likely be at a high cost, due to
the nature of the swap structure, which in turn may affect the
interest waterfall.

Although the notification trigger is set below the 'A' level, the
agency did not consider the risk of a loss of funds due to
commingling or disruption of payments in the cash flow analysis,
as Fitch considers that this risk is mitigated by means of a
commingling guarantee provided by Rabobank. In addition the
transaction is not exposed to the risk of deposit set-off or
other claims.

Fitch judges further set-off risks in this transaction to be
minimal due to the structural mitigants in place in relation to
construction deposit, savings and investment set-off as well as
the limited proportion of insurance loans included in the
portfolio. For the 5.6% insurance loans included in the pool
Fitch did incorporate in its analysis the risk that borrowers
might exercise set-off following the failure of insurance
providers.

Obvion provided Fitch with loan-by-loan information on the
portfolio as of Jan. 1, 2013. All of the data fields included in
the pool cut were of solid quality and Obvion provided additional
information for mortgage loans based on the income of two
borrowers.

Fitch reviewed an Agreed Upon Procedures (AUP) report regarding
the data provided by the arranger. The agency believes the sample
size, the relevance of the tested fields, and the limited number
of material error findings suggests the originator provided an
acceptable quality of data. In addition, Fitch relied on its own
file review undertaken for a prior transaction (STORM 2012-IV) on
July 25, 2012, which consisted of 15 loans selected from the
portfolio. This was considered a very good proxy for STORM 2013-
I, given the similar asset characteristics and recent timing. The
agency discovered no errors or unexpected results. Based on the
received repossession data, analysis showed that the performance
was in line with Fitch's standard Dutch RMBS assumptions;
therefore, Fitch did not adjust its quick sale, market value
decline or foreclosure timing assumptions.

To analyze the CE levels, Fitch evaluated the collateral using
its default model, details of which can be found in the reports
entitled "EMEA Residential Mortgage Loss Criteria", dated June 7,
2012, "EMEA RMBS Criteria Addendum - Netherlands", dated June 14,
2012. The agency assessed the transaction cash flows using
default and loss severity assumptions under various structural
stresses including prepayment speeds and interest rate scenarios.
The cash flow tests showed that each class of notes could
withstand loan losses at a level corresponding to the related
stress scenario without incurring any principal loss or interest
shortfall and can retire principal by the legal final maturity.



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P O R T U G A L
===============


* PORTUGAL: Moody's Says Banking System Outlook Remains Negative
----------------------------------------------------------------
The outlook for Portugal's banking system remains negative, says
Moody's Investors Service in a new Banking System Outlook
published on Jan. 16. The outlook has been negative since 2008
and reflects the rating agency's expectation that the weak
operating environment, recessionary economy and stressed
sovereign environment will prompt further asset-quality
deterioration, while profitability will stay weak.

The system outlook also captures Moody's view that restricted
access to market funding is unlikely to normalize in the next
12-18 months, and that banks have sizable credit exposures to the
Portuguese sovereign. Moody's says that improved bank capital
levels do not fully offset the abovementioned negative outlook
drivers.

The new report is entitled "Banking System Outlook: Portugal".

Following a 1.7% GDP contraction in 2011, Moody's had mentioned
on December 27, 2012 that it expects Portuguese GDP to contract
by 3.3% in 2012 and by 1.2% in 2013, indicating a prolonged
economic recession. Over the outlook period, the banking system
will remain under pressure from the recessionary economic
conditions, characterized by rising unemployment, the ongoing
deleveraging of the private sector -- with a contraction in
consumption and a sharp decline in investment -- as well as
declining disposable household income.

Moody's says that given the poor operating environment, the key
driver of asset-quality deterioration will continue to be the
ongoing economic recession, which has particularly affected
corporate borrowers that have significantly higher leverage
levels compared with retail borrowers. Moody's therefore expects
that banks' asset quality will deteriorate from already weak
levels over the outlook period. System-wide problem loans reached
9% (using the credit-at-risk ratio) of total loans at end-June
2012, from 4.8% at year-end 2009 [source: European Commission
"The Economic Adjustment Programme for Portugal"; Fifth Review;
October 2012]. Growth in problem loans will likely accelerate
owing to the challenging economy, with the more leveraged
companies leading the increase. Capital levels have increased,
prompted by more stringent regulatory thresholds. However, under
Moody's adverse scenario estimates, most rated banks' loss-
absorption capacity is still insufficient to meet regulatory
requirements.

Over the 12-18 month outlook period, banks will likely continue
to face restricted access to market funding. Portuguese banks
have faced severe market funding restrictions since spring 2010,
which may be prolonged by concerns about the strength of the
Portuguese economy and the potential for contagion from the
broader euro area sovereign and banking crisis. Reflecting these
funding constraints, Portuguese banks have resorted to the ECB,
which funded 10% of total banking assets at end-October 2012, one
of the highest portions among euro area banking systems. As part
of the recapitalization plans agreed with Bank of Portugal and
European authorities, Portuguese banks have to lower their
reliance on the ECB by reducing the size of their balance sheets.
The sizeable deleveraging necessary to achieve this goal poses
risks to bank earnings.

Moody's also expects that bank earnings will remain weak over the
outlook period. Pre-provision income levels have contracted
significantly for many banks, affected by the low interest rates,
the growing amount of non-interest earning assets, the banks'
deleveraging strategies as well as the recessionary environment.
In addition, loan-loss provisions will continue to rise and
absorb a higher portion of banks' lower pre-provision earnings.



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R O M A N I A
=============


HIDROELECTRICA: Administrator Cuts 154 Jobs Under Reorganization
----------------------------------------------------------------
Ziarul Financiar reports that Hidroelectrica's legal
administrator Euro Insol said Thursday it has given notice of
termination of employment to 154 staff and slashed another 161
vacant positions as part of a reorganization program aimed at
cutting costs.

Separately, ZF's Florentina Dragu relates that Euro Insol said
the managers of Hidroelectrica have been dismissed from their
positions Thursday as part of a larger reorganization process of
the insolvent company.

As reported by the Troubled Company Reporter-Europe on June 22,
2012, Bloomberg News related that a Romanian court approved the
insolvency of Hidroelectica as the company looks to reorganize
itself.

Hidroelectrica SA is a Romanian state-owned hydropower producer.



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


ABSOLUT BANK: Moody's Reviews 'Ba3' Deposit Ratings for Downgrade
-----------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
Ba3 long-term local- and foreign-currency deposit ratings of
Absolut Bank.

The review follows a joint announcement on December 24, 2012 --
by KBC Group N.V. (KBC, is the owner of an approximately 99%
stake in Absolut Bank via its subsidiary KBC Bank N.V., A3
deposits stable, BFSR D+/BCA baa3 stable) and by Russia's Non-
State Pension Fund "Blagosostoyanie" (not rated) -- regarding
KBC's decision to sell its Russian banking subsidiary, Absolut
Bank, to a group of Russian companies, which manage
Blagosostoyanie's assets.

Moody's assessment is primarily based on the joint statement,
published in December 2012, Absolut Bank's 2012 monthly
accounting statements prepared under local statutory accounting
rules (Russian Accounting Standards or RAS), as well as its
audited financial statements for 2011 prepared under IFRS.

Ratings Rationale

In placing Absolut Bank's deposit ratings on review for
downgrade, Moody's noted that they currently benefit from a one-
notch uplift from the bank's b1 standalone credit strength, due
to the rating agency's assessment of a low probability of
parental support from KBC. Moody's will continue to incorporate a
low probability of parental support to Absolut Bank's ratings
because the rating agency expects KBC to maintain its support
towards Absolut Bank until the transaction is concluded. However,
Moody's is likely to remove this one notch of uplift if and when
KBC completes the announced transaction with Blagosostoyanie,
which is scheduled in the second quarter of 2013.

Moody's further explained that, Absolut Bank's strategic fit for
the new shareholder (Blagosostoyanie) is yet to be defined.
Moreover, Absolut Bank's fundamental credit quality-- reflected
in its bank financial strength rating and standalone credit
assessment, currently at E+/b1 -- might be pressured by the
bank's significant dependence on parental funding which
constituted approximately 30% of its liabilities as at December
2012.

Focus of the Review

The ratings review will focus on: (1) the progress that KBC and
Blagosostoyanie make towards implementing the Absolut Bank
transaction; (2) the strategy which Blagosostoyanie will be
aiming to introduce in Absolut Bank when it obtains control; and
(3) on assessment of Blagosostoyanie's willingness and ability to
provide support to Absolut Bank in the event of need.

Principal Methodology

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

Headquartered in Moscow, Russia, Absolut Bank reported total
audited IFRS assets of RUB112.8 billion (US$3.5 billion) and
total shareholder equity of RUB16.6 billion (US$500 Million) as
at YE2011.


LENTA LIMITED: Moody's Assigns 'B1' CFR; Outlook Stable
-------------------------------------------------------
Moody's Investors Service has assigned a B1 corporate family
rating (CFR) and a B1-PD probability of default rating (PDR) to
Lenta Limited, one of the leading Russian food retailers. The
outlook on the ratings is stable.

Ratings Rationale

"Our assignment of a B1 CFR to Lenta takes into account the
company's relative small scale by revenue and limited
geographical presence compared with those of some Moody's-rated
international and domestic peers," says Sergei Grishunin, a
Moody's Assistant Vice President - Analyst and lead analyst for
Lenta.

The ratings also reflect Lenta's limited track record of
operations following the resolution of shareholder dispute and
resulting change of shareholders at the end of 2011. This
dispute, which started in October 2009, disrupted the work of
Lenta's top management and board of directors, resulting in a
slowdown in the company's growth and operational inefficiencies.
The dispute was resolved by the exit from the company of one of
the key shareholders, that owned 41% of Lenta at that time, and
by TPG Capital (a US based investment firm with more than $50
billion of capital under management) (not rated) increasing its
voting stake in the company to controlling (58%). Lenta's other
equity investors include VTB Capital (Baa3 stable, 14% voting
stake) and EBRD (Aaa stable, 22% voting stake).

Moody's understands that Lenta's current controlling shareholders
are resuming and accelerating the company's growth strategy,
while following a conservative financial policy with an internal
target of net debt/EBITDA of below 3.0x. Nevertheless, Moody's
notes that this growth strategy entails execution risks.

In addition no strategic investor in the shareholding structure
of the company creates uncertainty regarding Lenta's long-term
strategy and financial policies, given that the company's current
shareholders are financial investors that will aim to exit the
business in three to five years.

Furthermore, the ratings take into account that the company is
exposed solely to the Russian market, which has a less developed
regulatory, political and legal framework.

However, more positively, the ratings reflect the attractive
fundamentals of the Russian food retail market, which will
demonstrate 8%-10% growth in the next 12-18 months, and Lenta's
strong position in this market, particularly in the country's
fast-growing hypermarket segment. The ratings also positively
reflect the fact that Lenta generates the majority of its
turnover from food retail. As a result, the company has limited
exposure to risks associated with fashion retail and product
renewal.

Moreover, the ratings positively reflect that, following the
resolution of the shareholder dispute, Lenta significantly
reinforced its senior management team and board of directors by
attracting foreign expertise and promoting best management
practices from the global retail industry. The change in
management has already resulted in a turnaround of the company's
operations, a resumption of a double-digit sales growth and an
increase in its adjusted EBITDA margin as of the last 12 months
ended June 30, 2012 (Lenta has recently altered the end of its
reporting period from June 30 to December 31) to 10.7% from 8.5%
as of financial year ended June 30, 2011 (FYE2011).

Lenta's ratings are also supported by its conservative financial
profile. As of FYE 2010 and 2011 and the last 12 months ended
June 30, 2012, the company's leverage (measured by adjusted
debt/EBITDA) amounted to 2.1x, 1.4x and 2.3x, respectively.
Moody's expects that in the next 12-18 months, Lenta's adjusted
leverage will remain at around 2.0x, as the incremental growth in
revenues and EBITDA from Lenta's new stores will compensate for
the increase in its debt to finance its large capex program.

Liquidity

Moody's expects Lenta's liquidity position to be adequate for the
12 months to end-Q3 2013, despite the likelihood that the company
will generate negative free cash flow in this period as a result
of its sizable capex requirements. The company's liquidity is
supported by (1) a comfortable debt maturity profile, with debt
repayments starting only in 2015; (2) undrawn committed debt
facilities of around $300 million to cover seasonal working
capital needs; and (3) modest maintenance capex and the
discretionary nature of the company's expansion capex.

Outlook

The stable outlook on Lenta's ratings reflects the strong
prospects for the Russian food retail market for the next 12-18
months. The outlook also assumes that the company will continue
to follow its strategy of organic growth, while demonstrating
high operating efficiency and maintaining a strong financial
profile within its stated financial policy.

What Could Change The Rating UP/DOWN

Moody's does not envisage positive pressure being exerted on
Lenta's rating in the next 12-18 months. However, Moody's would
consider upgrading the rating if Lenta were to materially
increase its revenue generation as well as build a track record
of operating under a stable shareholding structure within stated
financial policies. A rating upgrade would also be dependent on
Lenta successfully executing on its expansion plan and
demonstrating a solid operating performance, as well as
maintaining a good liquidity position and complying with all its
debt covenants.

Conversely, negative pressure could be exerted on Lenta's ratings
as a result of weaker-than-anticipated performance or other
shareholder initiatives that lead to leverage increasing above
that stated in the company's financial policy, i.e., reported net
debt/EBITDA of 3.0x. A material deterioration in the company's
liquidity profile could also have negative rating implications.

Principal Methodology

The principal methodology used in this rating was the Global
Retail Industry published in June 2011.

Headquartered in St. Petersburg, Russia, and incorporated in
British Virgin Islands, Lenta operates a chain of hypermarkets in
Russia. As of end-December 2012, the company operated 56 stores
(around 382,000 square meters of selling space) in more than 28
major Russian cities and five distribution centers. In the last
12 months ended June 30, 2012, Lenta generated sales of
approximately US$3.2 billion and adjusted EBITDA of around US$350
million.



=========
S P A I N
=========


UNION FENOSA PREFERENTES: Fitch Affirms 'BB' Sub. Debt Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Gas Natural SDG, S.A.'s Long-term
Issuer Default Rating (IDR) at 'BBB+' and removed it from Rating
Watch Negative (RWN). The Outlook is Stable.

The rating actions follow the approval by the Spanish government
of a set of measures on Dec. 27, 2012, designed to prevent
generation of future tariff deficit (TD) in the electricity
system in Spain. The current regulatory scheme presents slight
changes compared with the draft measures published in September
2012. The main difference is that a flat 7% tax has been fixed to
all power generation compared with the previous proposal of 6%.
Fitch does not expect this to have a significant impact on Gas
Natural's credit metrics. The other approved measures were
largely unchanged.

KEY DRIVERS

- Strong Metrics

The Stable Outlook is supported by Fitch's expectations that Gas
Natural's leverage will continue decreasing in the short to
medium term as stated in its business plan, with FFO adjusted net
leverage to remain around 3.9x in 2012 and 3.5x in 2014.
Conversely, we believe that FFO interest cover will increase to
around 5.4x in 2014 from 4.9x in 2012.

The tax scheme on electricity generation introduced by the
decree, together with the regulatory changes affecting the
electricity distribution segment introduced earlier in Q212 will
negatively impact Gas Natural's 2013 earnings. However, the
latter is manageable for the issuer due to its relative exposure
to the Spanish generation segment and good performance of other
business segments.

- Sovereign Exposure

The Stable Outlook is also underpinned by Fitch's approach within
which Spain's sovereign rating ('BBB'/Negative) would need to be
downgraded by three notches to 'BB' in order to likely trigger a
downgrade of Gas Natural. The company generated around 60% of
FY11's EBITDA in Spain. Fitch does not expect this to
significantly change for 2012's results.

- Monetization of Past TD Slowing Down

As expected by Fitch, the securitization of past TD has
significantly slowed down in 2012 as a result of the high
correlation between the market access of the Spanish sovereign
debt and the TD securitization notes that are underpinned by the
Spanish sovereign guarantee. In 2012, FADE (securitization
vehicle for the TD) issued 50% of the amount placed in 2011
reflecting the financial instability that characterized the
sovereign debt market over the past 12 months.

At YE12, Gas Natural's outstanding TD was c. EUR1 billion. The
slowing down of the monetization has a negative financial impact
on credit metrics as Fitch includes the outstanding TD amounts in
the leverage ratios. However, the financial implications for Gas
Natural, on a progressive de-leveraging path, are less negative
compared with its peers.

- Future Tariff Deficit

Fitch highlights that it has not been included in the law that
part of the burden (EUR2.2 billion) will be transferred to the
state budget as previously stated. Additionally, the government
has erased the legal limits for the generation of TD previously
established at EUR1.5 billion in 2012 and zero in 2013. The
latter will allow transferring all tariff deficit amounts to FADE
but we believe it is a clear signal that the Spanish electricity
system will continue generating a TD beyond 2013.

RATING SENSITIVITY GUIDANCE:

Positive: Future developments that may potentially lead to a
positive rating action include:

- Further reduction of leverage with FFO adjusted net leverage
   around 3.0x or below on a sustained basis and FFO interest
   coverage around 5.5x or above on a sustained basis.

- Improvement in the operating and regulatory environment.

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

- A downgrade of Spain to 'BB' would likely trigger a downgrade
   to 'BBB' for Gas Natural's IDR following Fitch's approach.

- An increase of leverage with FFO adjusted net leverage above
   4.0x and FFO interest coverage below 4.5x on sustained basis,
   possibly as a result of further government measures.

LIQUIDITY AND DEBT STRUCTURE

Gas Natural's liquidity position remains strong. It had around
EUR5 billion of committed available credit lines with more than
15 entities and EUR4.3 billion of available cash as of September
2012. This liquidity should enable it to cover maturities within
the next 24 months (EUR4.9 billion). We expect Gas Natural to
generate free cash flow in 2012-2014.

RATING ACTIONS

Gas Natural SDG, S.A.

-- Long-term IDR affirmed at 'BBB+', removed from RWN, Outlook
    Stable

-- Short- term IDR affirmed at 'F2' removed from RWN

Gas Natural Finance BV

-- Senior unsecured affirmed at 'BBB+' removed from RWN

-- Euro commercial Paper programme affirmed at 'F2' removed from
    RWN

Gas Natural Capital Markets

-- Senior unsecured affirmed at 'BBB+' removed from RWN

Union Fenosa Finance BV

-- Commercial Paper affirmed at 'F2' removed from RWN

Union Fenosa Financial Services USA LLC

-- Subordinated debt affirmed at 'BB+' removed from RWN

Union Fenosa Preferentes, S.A.

-- Subordinated debt affirmed at 'BB' removed from RWN



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U K R A I N E
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BIZ FINANCE: Fitch Assigns 'B(EXP)' Rating to Fixed-Rate Notes
--------------------------------------------------------------
Fitch Ratings has assigned Biz Finance PLC's upcoming issue of
fixed-rate limited recourse notes an expected Long-term rating of
'B(EXP)' and a Recovery Rating of 'RR4'. The issue's planned
volume is US$500 million with notes having maturities of five
years.

The notes are to be used solely for financing a loan to Ukraine-
based JSC The State Export-Import Bank of Ukraine. Ukreximbank
has a Long-term Issuer Default Rating (IDR) of 'B', a Short-term
IDR of 'B', a Viability Rating (VR) of 'b', a Support Rating of
'4', a Support Rating Floor of 'B', and a National Long-term
rating of 'AA-(ukr)'. The Outlooks on both the Long-term IDR and
National Long-term rating are Stable.

Ukreximbank's IDRs and VR reflect the bank's sizable capital
buffer and solid pre-impairment profitability available to absorb
losses, comfortable liquidity and solid corporate franchise.
However, Ukreximbank's VR also considers its high loan impairment
(albeit lower than for the sector as a whole), high loan
concentrations, the large share of FX lending and currently weak
profitability, driven by loan impairment charges.

At the same time, Ukreximbank's IDRs, National Long-term and
Support Ratings are underpinned by potential support from the
Ukrainian authorities, if needed, based on the bank's state
ownership, its policy role, its high systemic importance, and the
track record of capital support for the bank under different
governments. The ratings also take into consideration the ability
of the Ukrainian authorities to provide such support, which
remains limited, as indicated by the sovereign's Long-term IDR of
'B'.

Biz Finance PLC, a UK-based company, will only pay noteholders
amounts (principal and interest) received from Ukreximbank under
the loan agreement. The claims under the loan agreement will rank
at least equally with the claims of other senior unsecured and
unsubordinated creditors of Ukreximbank, save those preferred by
relevant laws. Under Ukrainian law, the claims of retail
depositors rank above those of other senior unsecured creditors.
At end-Q312, retail depositors accounted for around 25% of
Ukreximbank's non-equity funding, according to the bank's local
GAAP reporting.

Noteholders will receive a put option if the Ukrainian state
ceases to own, legally and beneficially, at least 51% of the
capital stock of, or otherwise to control, Ukreximbank or
announces its intention to do so and if such an event results in
a downgrade of Ukreximbank's ratings. Other terms in the loan
agreement also include covenants restricting mergers, disposals
and other types of corporate reorganizations and stipulate that
operations with affiliates should be conducted on market terms.
Ukreximbank also commits to maintaining a regulatory minimum
capital adequacy ratio (currently, 10%). According to the terms
of the loan agreement, a cross default is triggered if
Ukreximbank's, or any of its material subsidiaries, overdue
indebtedness exceeds US410 million (or its equivalent in other
currency).

At end-Q312, Ukreximbank was the third largest bank in Ukraine by
total assets; its key role is to support foreign trade. The
state, represented by the Ukrainian cabinet, is the only
shareholder in the bank.


UKREXIMBANK: Moody's Rates Foreign Curr. Sr. Unsecured Notes 'B3'
-----------------------------------------------------------------
Moody's Investors Service has assigned a rating of B3 to
Ukreximbank's upcoming foreign-currency senior unsecured notes.
The size of the issuance is expected to be US$500 million with a
tenor of 5 years. The limited-recourse notes will be issued by
Biz Finance PLC, a UK-based special-purpose vehicle, for the sole
purpose of funding a loan to Ukreximbank. The outlook for the
rating is negative.

Ratings Rationale

The B3 rating of the notes is based on the fundamental credit
quality of the underlying obligor, Ukreximbank, rated B3/NP/E+,
with a negative outlook.

According to Moody's, Ukreximbank's ratings are driven primarily
by the linkages between the bank's credit profile and sovereign
credit risk. This reflects the bank's (1) sizeable exposure to
Ukraine's government bonds, which account for over 50% of the
bank's Tier 1 capital; (2) geographical concentration in
Ukraine's weak and volatile operating environment; and (3)
significant refinancing risks in the medium term, as foreign-
market borrowings account for a third of Ukreximbank's total
funding.

According to the terms and conditions of the notes, Ukreximbank
must comply with a number of covenants, including negative-pledge
covenants, limitations on mergers, disposals, transactions with
affiliates and minimum capital-adequacy maintenance.

Principal Methodology

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

Headquartered in Kyiv, Ukraine, Ukreximbank reported (under
IFRS), total assets, equity and net income of US$9.36 billion,
US$2.17 billion and US$9.91 million, respectively at end-H1 2012.



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


BLOCKBUSTER UK: In Administration; Deloitte Seeks Buyer
-------------------------------------------------------
Reuters reports that Blockbuster UK went into administration on
Wednesday, January 16, and appointed Deloitte to seek a buyer for
all or parts of the business.

The move came a day after a rival, HMV, announced that it had
entered administration, Reuters notes.  Deloitte, which took
control of HMV on Tuesday, said Blockbuster's 528 stores would
continue to operate as usual while it sought a buyer, Reuters
relates.

Blockbuster UK, which has 4,190 employees, is part of Blockbuster
L.L.C., which Dish Network, a U.S. satellite television company,
bought at a bankruptcy auction in 2010, Reuters discloses.
Blockbuster has more than 2,500 stores in the Americas, Asia,
Europe and Australia, according to the company's Web site, but
only the British stores are going into administration, Reuters
states.

According to Reuters, many of the country's specialized retailers
are struggling against competition from supermarkets, online
retailers and Internet download sites.  The sector has also been
pressured by muted wage growth and government austerity measures
that are squeezing household budgets, Reuters says.

Blockbuster UK is the third major casualty in the British retail
sector since Christmas, Reuters notes.

According to Dow Jones Newswires' Jessica Hodgson, a person
familiar with the matter said Dish had been trying to find a
buyer for Blockbuster U.K. for several months.

Dow Jones relates that U.K. company filings show Blockbuster U.K.
posted a loss before interest, tax and certain other items of
GBP11.2 million on revenue of GBP182 million in 2012, compared
with a loss of GBP8.5 million on revenue of GBP215 million for
2011.  The filings also indicate that Dish, after acquiring
Blockbuster, committed to provide full financial support for the
U.K. unit for one year from September 2011, Dow Jones notes.
Blockbuster UK is an entertainment retailer.


BUSH DEVELOPMENTS: In Administration; Has GBP.9-Mil. Deficit
------------------------------------------------------------
BBC News reports that Bush Developments (NI), which owes Ulster
Bank more than GBP11 million, has been placed into
administration.

According BBC, the firm's last set of accounts, for 2011, show
that its liabilities outweighed its assets by almost GBP9
million.

A statement in those accounts said the firm had been badly hit by
the fall in the value of development land, BBC notes.

The Northern Ireland property crash has seen the value of
development sites fall by as much as 90%, BBC discloses.

Bush Developments (NI) is a Dungannon house-building firm.


DRAX POWER: S&P Downgrades Corporate Credit Rating to 'BB'
----------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on U.K.-based power generator Drax
Power Ltd. to 'BB' from 'BB+'.  The outlook is stable.

At the same time, S&P withdrew its 'BBB-' issue rating on Drax's
GBP310 million revolving credit facility (RCF) to reflect its
replacement with a new GBP400 million facility.  The recovery
rating at the time of withdrawal was '2', indicating S&P's
expectation of substantial (70%-90%) recovery in the event of a
payment default.

In addition, S&P assigned its 'BB+' issue rating to Drax's new
GBP400 million RCF.  The recovery rating on the RCF is '2',
indicating S&P's expectation of substantial (70%-90%) recovery in
the event of a payment default.

"Finally, we assigned our issue rating of 'BB+' to Drax's
GBP100 million term loan with the Prudential/M&G UK Companies
Financing Fund and its GBP100 million term loan with the UK Green
Investment Bank.  The recovery rating on these two term loans is
'2', indicating S&P's expectation of substantial (70%-90%)
recovery in the event of a payment default.

The downgrade follows the completion of Drax's debt refinancing
in late December 2012, which has introduced GBP200 million of
term debt into the company's capital structure.  The new debt
will fund part of the GBP650 million-GBP700 million capital
investment required to convert three of Drax's six generation
units to biomass.  Drax has also raised GBP190 million through an
equity placing, with the remainder of the investment coming from
existing cash and operating cash flow.

The downgrade reflects S&P's view that Drax's Standard & Poor's-
adjusted credit metrics will weaken as a result of the debt
issuance.  In addition, S&P believes that the increase in
financial risk as a result of the debt issuance may not be offset
by a commensurate reduction in business risk in the near term.
This is because S&P considers that biomass conversion on the
scale that Drax plans entails significant execution risk.

The ratings on Drax continue to reflect S&P's assessment of the
company's "weak" business risk profile and "intermediate"
financial risk profile.  The "weak" business risk profile
reflects:

-- Drax's inherently risky merchant business model and resulting
    exposure to wholesale electricity prices;

-- Its single asset base and primary focus on coal, which is
    subject to increasing regulatory and environmental
    constraints;

-- Its exposure to coal and carbon costs, and therefore the dark
    green spread (the difference between the power price and the
    prices of coal and carbon); and

-- Execution risk associated with the company's biomass
    expansion strategy.

These weaknesses are partly offset by:

-- Drax's important position in the U.K. power markets,
    accounting for about 7% of generation capacity;

-- Its well-maintained, efficient, and flexible power turbines;

-- Its good operational track record; and

-- Its increasing proportion of biomass-fired generation
    capacity, which will benefit from regulatory support.

Drax's "intermediate" financial risk profile is supported by
solid debt coverage ratios; positive, albeit volatile,
discretionary cash flows; and strong liquidity.  Drax's
transition to negative discretionary cash flow as it moves into a
period of high investment, and the introduction of term debt into
the capital structure, will in S&P's opinion weaken the company's
adjusted ratios significantly, particularly in 2013.  However,
S&P forecasts that the ratios will remain commensurate with an
"intermediate" financial risk profile over the medium term.

S&P could lower the rating if Drax's credit metrics weaken beyond
S&P's current forecasts.  This could occur, for example, as a
result of cost overruns relating to the biomass expansion,
operational difficulties, or a collapse in dark green spreads.

"Conversely, upward rating momentum could develop over the medium
term if credit metrics strengthen materially after 2013-2014, and
at the same time, we believe that business risk has reduced.
This could occur, for example, if we believe that Drax has
established a track record of successfully generating power from
biomass, with the associated benefits of regulatory support," S&P
noted.


HMV GROUP: Music Retail Chain Enters Administration
---------------------------------------------------
Peter Evans at Daily Bankruptcy Review reports that HMV Group
PLC, the UK's last remaining high-street music retail chain,
entered administration on Tuesday, highlighting the unstoppable
consumer shift toward online shopping that continues to pile
pressure on bricks-and-mortar retailers.

United Kingdom-based HMV Group plc is engaged in retailing of
pre-recorded music, video, electronic games and related
entertainment products under the HMV and Fopp brands, and the
retailing of books principally under the Waterstone's brand.  The
Company operates in four segments: HMV UK & Ireland, HMV
International, HMV Live, and Waterstone's.


QHOTELS GROUP: Put Into Administration Under Refinancing Deal
-------------------------------------------------------------
TheBusinessDesk reports that QHotels Group, which owns several
venues in the West Midlands, has been placed into administration
as part of a refinancing deal.

According to TheBusinessDesk, the Yorkshire-based group, which
owns 21 hotels across the UK including Chesford Grange in
Warwickshire and Stratford Manor, said the administration only
involved its holding company and would have "no impact on staff,
customers or suppliers and the QHotels business will continue as
normal".

The BusinessDesk notes that the three-year refinancing
arrangement has been agreed with Irish Bank Resolution
Corporation which QHotels Group said would allow it "to continue
its successful programme of business development and investment".

The QHotels Group Ltd., the original group holding company, has
been placed into administration and replaced for all group
companies by a new holding company, QHotels Holdings Limited with
all other group companies unaffected, TheBusinessDesk recounts.

QHotels managing director Michael Purtill and finance director
Ian Goulding will continue to run the company while Tim Scoble,
who has held a number of senior management roles in the leisure
sector, has been appointed chairman of QHotels Holdings Ltd.,
TheBusinessDesk discloses.


VOYAGE CARE: Moody's Cuts Senior Secured Notes Rating to '(P)B2'
----------------------------------------------------------------
Moody's Investors Service downgraded Voyage's announced
GBP222 million senior secured notes issued by Voyage Care BondCo
PLC to a provisional (P)B2 from (P)B1 based on a revised debt mix
within the group's capital structure. The (P)B2 corporate family
rating of Voyage BidCo Ltd ("Voyage") and (P)Caa1 instrument
rating for the GBP50 million second lien notes issued by Voyage
Care BondCo PLC as well as the stable outlook remain unchanged.

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

Downgrades:

  Issuer: Voyage Care BondCo PLC

     Senior Secured Regular Bond/Debenture, Downgraded to (P)B2
     from (P)B1

     Senior Secured Regular Bond/Debenture, Downgraded to a range
     of LGD3, 44 % from a range of LGD3, 42 %

     Senior Subordinated Regular Bond/Debenture, Downgraded to a
     range of LGD6, 91 % from a range of LGD6, 90 %

Ratings Rationale

The downgrade of the senior secured notes was prompted by an
increase in the amount of the senior secured notes to GBP222
million from initially planned GBP210 million and a reduction of
the subordinated second lien notes by GBP12 million to GBP50
million, which have reduced the cushion for the secured
bondholders to an extent that does not justify an upnotching
anymore according to Moody's Loss Given Default Methodology.

The senior secured notes which will be issued by Voyage Care
BondCo PLC are unconditionally guaranteed by the parent, Voyage
BidCo Ltd and certain operating subsidiaries. As of September 30,
2012, guarantors represent 98.5% of the group's consolidated
EBITDA before exceptional items and 99.8% of consolidated gross
assets, respectively. The senior secured notes are secured by the
share capital and substantially all assets of the issuer and the
guarantors except for the share capital of Voyage BidCo Ltd.
Moody's understands that the assets securing the senior secured
notes include Voyage's freehold property which has been valued at
GBP372 million as of December 2012 by Christie + Co, a third
party service provider. The senior secured notes rank pari passu
with the super senior revolving credit facility but receive
proceeds from the collateral only after the obligations under the
super senior revolving credit facility and certain hedging
obligations have been repaid in full.

The second lien notes which will be issued by Voyage Care BondCo
PLC benefit from the same guarantor coverage and security package
as the senior secured notes but on a subordinated basis. Second
lien note holders receive proceeds from the collateral only after
the obligations under the super senior revolving credit facility,
certain hedging obligations and senior secured notes have been
repaid in full.

In Moody's analysis of the priority of claims within the
suggested capital structure, the super senior revolving credit
facility (approx. GBP30 million) ranks ahead of all other
obligations as the banks have a first priority claim on the
enforcement proceeds from the collateral. The senior secured
notes (approx. GBP222 million) as well as trade payables rank
behind the super senior revolving credit facility but before the
second lien notes (approx. GBP50 million). Lease rejection claims
rank behind the second lien notes at the bottom of the debt
waterfall. As a result of Moody's Loss given Default analysis the
senior secured notes are rated at same level than the corporate
family rating. The second lien notes are rated two notches below
the corporate family rating given their claims contractually
ranking behind the senior secured notes and super senior
revolving credit facility in a default scenario.

Voyage's corporate family rating (CFR) is supported by (i) the
group's position in a niche market as a provider of intensive
care for people with high acuity needs resulting from learning
and/or physical disabilities, (ii) a relatively robust and stable
business model that benefits from long term contracts (68% of
service users stay for more than 5 years) given the non-
discretionary nature of the services provided; (iii) a highly
regulated business environment which creates high barriers to
entry; (iv) Voyage's strong and long lasting relationships with
key customers, e.g. local authorities and NHS; (v) Voyage's
quality leadership with excellent ratings from independent
agencies; as well as (vi) Voyage's solid track record with a 10-
year history of year-on-year revenue and EBITDA growth and
occupancy levels above 90% since 1993. Moreover, the rating takes
into account (vii) Voyage's limited use of operating leases as it
owns the majority of its property which is a distinguishing
factor to some of the group's peers. Therefore, Voyage has a
limited exposure to increasing rent expenses which could burden
the group's profitability.

Voyage's rating is constrained by (i) the relatively small size
of the company that makes it still vulnerable to changes in the
industry, notwithstanding its leading market position in its
niche market; (ii) the currently challenging social care funding
environment leading to pricing pressure; (iii) the high leverage
Moody's anticipates to be approx. 6.1x adjusted Debt/EBITDA as of
FY end March 2013, under the assumption of a 100% equity
treatment of the PEK notes issued by Voyage Mezzco Ltd outside
the restricted group; (iv) with only limited capacity to reduce
debt over the coming years due to limited free cash flow
generation anticipated as well as (v) an adverse mix effect on
profitability resulting from the integration of Solor and a
possible shift towards supported living generating lower profit
margins than the registered care business.

The stable outlook incorporates Moody's expectation that Voyage
will (i) be able to successfully deliver on its business plan and
continuously reduce its high leverage and; (ii) maintain a solid
liquidity profile (after successful refinancing) at all times.
The stable outlook also does not factor in any larger debt-
financed acquisitions, dividends, nor a material increase in
capex beyond GBP10 million per annum.

Voyage's rating could be upgraded if Voyage was able to generate
substantial free cash flow above GBP15 million per annum on a
sustainable basis. Moreover, leverage would have to fall towards
5.5x adjusted debt/ EBITDA.

The rating would come under pressure in a period of sustainably
negative free cash flow generation or if leverage increased above
6.5x adjusted debt/EBITDA.

Liquidity

Following the successful refinancing, the liquidity profile of
Voyage over the next 12 months is solid. In Moody's scenario, the
company has access to total funds of GBP331 million, comprising
of GBP14 million of cash, GBP15 million cash generated from
operations (FFO), GBP272 million from new instruments issued and
GBP30 million available under the undrawn super senior revolving
credit facility. Moody's calculates that Voyage would have cash
needs of GBP286 million over the same period, comprising of
GBP273 million debt repayments, transaction costs and swap
termination costs, GBP7-8 million capex and GBP5 million working
cash for its day-to-day operations.

Headquartered in Lichfield (United Kingdom), Voyage is a market
leading national provider of a diverse range of care solutions
for people with complex needs, such as learning disabilities,
physical disabilities and acquired brain injuries. Based in 348
separate residential services and 12 day care centers Voyage
provides both registered accommodation and supported living for
high acuity service users. Voyage is private-equity owned by
HgCapital which acquired the company in April 2006. In FY2011/12
Voyage generated revenues of GBP142.2 million and an EBITDA of
GBP35.1 million.

The principal methodology used in this rating was the Global
Healthcare Service Providers published in December 2011. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.


* Higher UK Bank Leverage Ratio Challenging for Some, Fitch Says
----------------------------------------------------------------
Planned UK Financial Policy Committee (FPC) powers to supplement
bank capital requirements, including the introduction of a time-
varying leverage ratio tool in 2018 or later, should be positive
for financial stability, Fitch Ratings says. But any quicker move
to set a higher leverage ratio as proposed by the Parliamentary
Commission on Banking Standards, would be challenging for some
banks to meet.

The FPC plans to apply a countercyclical buffer and sectoral
capital requirements to constrain bank leverage, debt or credit
growth during boom times, together with a leverage ratio tool. In
combination, these tools should enhance the credit profile of
individual banks and strengthen the sector's ability to withstand
shocks.

A leverage ratio has the benefit of avoiding distortion by the
various methodologies for risk-weighting assets used by banks.
The banking standards commission recommended that the FPC be
given the duty of setting the leverage ratio from Spring 2013. It
also proposed that a leverage ratio should be set substantially
higher than the 3% minimum required under Basel III to support
the retail ring-fence for UK banks.

Some of the larger building societies would also find themselves
with a need to issue additional loss absorbing capital, if the
Building Society Act is amended to render building society
requirements similar to those of the ring-fenced banks (as
proposed by the initial government consultation paper "The Future
of Building Societies").

Barclays, HSBC Bank, Nationwide and Coventry Building Society
currently have tangible equity to tangible asset ratios below or
at 3%, according to our calculations. While not the same as the
Basel III leverage ratio, where Tier 1 capital is to be divided
by a total assets adjusted for off-balance sheet items, it is the
key measure of leverage we use for peer comparison purposes. The
Basel III leverage requirements should be manageable for the
banks given the long implementation timeframe.

The 4.06% leverage ratio recommended by the Independent
Commission for Banking (ICB) could be a candidate for a higher
backstop, although there is no ratio proposed by the banking
standards commission. The ICB's higher leverage cap was rejected
by the UK government. If a higher leverage ratio for ring-fenced
banks and building societies is to be set by the FPC, there would
need to be a long implementation period to allow some lenders to
adjust.

Even if the FPC's adjustable leverage tool is not effective until
2018, we expect leverage at the UK banks and building societies
to become more closely aligned over the next few years. The
lenders are now more focused on leverage ratios than they were
historically and will steer towards the Basel requirement once
the concrete definition is out.

The Bank of England published a draft policy statement on Monday
detailing the FPC's powers to supplement capital requirements.
The UK Parliamentary Commission on Banking Standards published
its first report on 19 December 2012 on the structure, capital
and loss absorbency recommendations by the ICB.



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


* BOOK REVIEW: Corporate Venturing -- Creating New Businesses
-------------------------------------------------------------
Authors: Zenas Block and Ian C. MacMillan
Publisher: Beard Books, Washington, D.C. 2003
(reprint of 1993 book published by the President and Fellows of
Harvard College).
List Price: 371 pages. US$34.95 trade paper, ISBN 1-58798-211-0.

Creating new businesses within a firm is a way for a company to
try to tap into its potential while at the same time minimizing
risks.  A new business within a firm is like an entreprenuerial
venture in that it would have greater flexibility to
opportunistically pursue profits apart from the normal corporate
structure and decision-making processes.  Such a business is
different from a true entrepreneurial venture however in that the
business has corporate resources at its disposal.  Such a company
business venture has to answer to the company management too.
Corporate venturing--to use the authors' term--offers innovative
and stimulating business opportunities.  Though venturing is in a
somewhat symbiotic relationship with the parent firm, the venture
would never threaten to ruin the parent firm as a entrepreneur
might be financially devastated by failure.

Block and MacMillan contrast an entreprenuerial enterprise with
their subject of corporate venturing, "When a new entrepreneurial
venture is created outside an existing organization, a wide
variety of environmental factors determine the fledgling
business's survival.  Inside an organization . . . senior
management is the most critical environmental factor."  This
circumstance is the basis for both the strengths and limitations
of a corporate venture.  In their book, the authors discuss how
senior management working with the leadership of a corporate
venture can work in consideration of these strengths and
weaknesses to give the venture the best chances for success.  If
the venture succeeds beyond the prospects and goals going into
its formation, it can always be integrated into the parent
company as a new division or subsidiary modeled after the regular
parts of a company with the open-ended commitment, regular hiring
practices, and reporting and coordination, etc., going with this.
As covered by the authors, done properly with the right
commitment, sense of realism and practicality, and preliminary
research and ongoing analysis, corporate venturing offers a firm
new paths of growth and a way to reach out to new markets, engage
in fruitful business research, and adapt to changing market and
industry conditions. The principle of corporate venturing is the
familiar adage, "nothing ventured, nothing gained."  While it is
improbable that a corporate venture can save a dying firm, a
characteristic of every dying firm is a blindness about
venturing.  Just thinking about corporate ventures alone can
bring to a firm a vibrancy and imagination needed for business
longevity.

Ideas, insights, and vision are the essence of corporate
venturing.  But these are not enough by themselves. Corporate
venturing is based as much on the right personnel, especially the
top leaders.  The authors advise to select current employees of a
firm to lead a corporate venture whenever feasible because they
already have relationships with senior management who are the
ultimate overseers of a venture and they understand the corporate
culture.  In one of their several references to the corporate
consultant and motivational speaker Peter Drucker, the authors
quote him as identifying only half jokingly the most promising
employees to lead the corporate venture as "the troublemakers."
These are the ones who will be given the "great freedom and a
high level of empowerment" required to make the venture workable
and who also are most suited to "adapt rapidly to new
information." Such employees for top management of a venture are
not entirely on their own.  The other side of this, as Brock and
MacMillan go into, is for such venture management to earn and
hold the trust and confidence of the firm's top management and
work within the framework and follow the guidelines set for the
venture.

Corporate venturing is an operation which is a hybrid of the
standard corporate interests and operations and an independent
business with entrepreneurial flexibility mainly from focus on
one product or service or at most a few interrelated ones,
simplified operations, and streamlined decision-making.  From
identifying opportunities and getting starting through the
business plan and corporate politics, Brock and MacMillan guide
the readers into all of the areas of corporate venturing.

Zenas Block is a former adjunct professor with the Executive MBA
Program at the NYU Stern School of Business.  Ian C. MacMillan is
associated with Wharton as a professor and a director of a center
for entrepreneurial studies.


                            *********

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

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

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

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


                            *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., 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 2013.  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$775 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 215-945-7000 or Nina Novak at
202-241-8200.


                 * * * End of Transmission * * *