TCREUR_Public/130123.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, January 23, 2013, Vol. 14, No. 16

                            Headlines



A U S T R I A

TELEKOM AUSTRIA: S&P Assigns 'BB+' Rating to Capital Securities


B E L G I U M

DEXIA CREDIOP: Fitch Affirms 'ccc' Viability Rating
TELENET GROUP: S&P Affirms 'B+' Long-Term Corp. Credit Rating


B U L G A R I A

VMZ SOPOT: Plovdiv Ct. Moves Insolvency Claim Hearing to Feb. 18


D E N M A R K

* DENMARK: Won't Bail Out Too-Big-to-Fail Banks


F R A N C E

ATARI SA: U.S. Unit to Separate, Files for Bankruptcy
PESCAROLO TEAM: Owner Contemplates Future as Team Liquidates
* FRANCE: Moody's Highlights Negative Impact of Overindebtedness


G R E E C E

NEWLEAD HOLDINGS: Enters Into Coal Reserve Property Agreement


H U N G A R Y

MAV ABE: Liquidator Pays Out HUF400MM in Damages on Policies


I R E L A N D

BIZ FINANCE: Fitch Assigns 'B' Final LT Rating to US$500MM Notes
CBOM FINANCE: Fitch Assigns 'BB-' Rating to Recourse Loan Notes


K A Z A K H S T A N

BTA BANK: Fitch to Review Ratings by End-Q113 After Restructuring


L I T H U A N I A

SNORAS BANK: Antonov's Extradition Hearing Adjourned Until July 8


L U X E M B O U R G

GEO TRAVEL: S&P Affirms 'B' Long-Term Corp. Credit Rating
Z BETA: Moody's Assigns '(P)B2' CFR; Outlook Stable
Z BETA: S&P Assigns 'B-' Long-Term Corporate Credit Rating


N E T H E R L A N D S

HARBOURMASTER CLO: Fitch Affirms 'B-' Rating on Class B2 Notes
INDO ENERGY: Fitch Assigns 'B+' Rating to US$500MM Sr. Notes


P O R T U G A L

* PORTUGAL: S&P Affirms 'BB/B' Sovereign Credit Ratings


R U S S I A

INSURANCE GROUP: Fitch Affirms 'BB' IFS Rating; Outlook Stable


S P A I N

BANCO POPULAR: S&P Puts 'CCC-' Pref. Stock Rating on Watch Pos.
ENCE ENERGIA: Moody's Assigns '(P)Ba3' CFR; Outlook Stable
ENCE ENERGIA: S&P Assigns 'BB' Long-Term Corp. Credit Rating
PYMES BANESTO 3: S&P Assigns 'CC' Rating on Class C Notes
SABADELL EMPRESAS: S&P Removes 'BB' Rating from CreditWatch


S W E D E N

VIDA PAPER: Norwegian Investors Save Lessebo Mill From Closure


U N I T E D   K I N G D O M

AFTERSHOCK ENGINEERING: In Liquidation, M. Durkan as Liquidator
ALSTON ASSET: In Voluntary Wind-Up, Leonard Curtis as Liquidators
AUTOCRASH LIMITED: Begbies Traynor Appointed as Administrators
BERG CONSULTING: Firm in Wind-Up, Herron Fisher as Liquidators
BIG PICTURES: Paparazzi Firm Goes Into Liquidation

BIZTECH SERVICES: In Liquidation; Claims Due on Feb. 20
BIOTICA TECHNOLOGY: McTear Williams Named as Administrators
BRIDGE BIORESEARCH: Wind-Up Petition to Be Heard on Jan. 24
CABLE & WIRELESS: S&P Affirms 'BB/B' Corporate Credit Ratings
CBRE BRITANNICA: Grant Thornton UK Named as Administrators

DRACO PLC: Moody's Cuts Rating on GBP12.1MM Cl. E Notes to 'B1'
GEN. MEDICAL EQUIPMENT: In Liquidation, J. Lord Named Liquidator
GODFREY DIY: Placed Into Liquidation
H2O SOLUTIONS: In Voluntary Wind-Up, Lucas Johnson as Liquidator
HMV GROUP: To Accept Up to GBP7-Mil. Worth of Gift Vouchers

JESSOP GROUP: PwC Named as Joint Administrators
LOGICOR LTD: G. Craig Named as Administrator
MID-STAFFORDSHIRE NHS: Needs to Save GBP53MM to Avoid Insolvency
OMNITEC BUSINESS: In Wind-Up, R. Peck Named as Receiver
PELAW PACK: Wind-Up Petition to be Heard on February 12

RENTEQ TRAFFIC: RSM Tenon Named as Adminstrators
RUBICON DESIGN: Placed in Wind-Up Proceedings
SCOTIA CONSTRUCTION: Hasan Steps Down as FMB Head After Collapse
VIZONE LTD: In Wind-Up Proceedings, RSM Tenon Named Liquidators
WATERMILL HOTEL: In Administration; Begbies Traynor Seeks Buyer

WINDERMERE VIII: S&P Lowers Rating on Class D Notes to 'CCC-'

* UK: More Companies to Face Default This Year, Survey Shows
* UK: 2012 Channel Insolvency Second-Highest in Nine Years


X X X X X X X X

* Fitch Says Ageing Costs Will Impede Long-Term Fiscal Recovery


                            *********


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A U S T R I A
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TELEKOM AUSTRIA: S&P Assigns 'BB+' Rating to Capital Securities
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB+' long-term issue rating to the proposed, undated, optionally
deferrable, and deeply subordinated hybrid capital securities to
be issued by Austria-based telecom operator Telekom Austria AG
(BBB/Stable/A-2).  S&P understands that the transaction volume is
subject to market conditions.

S&P considers the proposed securities to have intermediate equity
content until their first call date in February 2018 because they
meet S&P's hybrid capital criteria in terms of their
subordination, permanence, and optional deferability during this
period.  In addition, this assumes that the amount of issued
hybrid securities will not exceed 15% of the group's
capitalization in the medium term.  Under S&P's criteria, it
define capitalization as the sum of financial debt, hybrids, and
book equity adjusted for goodwill and after all its other
standard adjustments to debt and equity.

S&P arrived at its 'BB+' issue rating on the proposed securities
by notching down from its 'BBB' long-term corporate credit rating
(CCR) on Telekom Austria.  The two-notch differential between the
issue rating and the CCR reflects S&P's notching methodology,
which calls for:

   -- A one-notch deduction for subordination because the CCR on
      Telekom Austria is investment grade (that is, 'BBB-' or
      above); and

   -- An additional one-notch deduction for payment flexibility
      to reflect the fact that the deferral of interest is
      optional and that the CCR is investment grade.

The notching of the proposed securities reflects S&P's view that
there is a relatively low likelihood that Telekom Austria will
defer interest.  Should S&P's view change, it may significantly
increase the number of downward notches that it applied to the
issue rating.

In addition, in view of what S&P sees as the intermediate equity
content of the proposed securities, it allocate 50% of the
related payments on these securities as a fixed interest charge
and 50% as equivalent to a common dividend, in line with its
hybrid capital criteria.  The 50% treatment (of principal and
accrued interest) also applies to S&P's adjustment of debt.

KEY FACTORS IN S&P's ASSESSMENT OF THE INSTRUMENT'S PERMANENCE

Although the securities are perpetual, they can be called at any
time for tax, gross-up, rating agency, accounting, or change of
control events.  Furthermore, Telekom Austria can redeem them for
cash as of the first call date in February 2018, and every five
years thereafter.  If any of these events occur, the company
intends to replace the instrument, although it is not obliged to
do so.  In S&P's view, Telekom Austria's statement of intent also
mitigates the likelihood of open market purchases by the company,
as does its financial policy which primarily aims to maintain a
conservative balance sheet and an investment-grade rating of
'BBB' with a stable outlook.  To support its credit metrics and
balance sheet, the group cut the dividend per share in December
2011 by 50% to EUR0.38 for the fiscal year ended Dec. 31, 2011,
and in September 2012 to EUR0.05 for the fiscal years 2012 and
2013.

The interest to be paid on the proposed securities will increase
by 25 basis points in February 2023, and a further 75 basis
points in February 2038.  S&P considers the cumulative 100 basis
points as a material step-up, which is currently unmitigated by
any commitment to replace the instrument at that time.  This
step-up provides an incentive for Telekom Austria to redeem the
instrument on the February 2038 call date, in S&P's view.

Consequently, in accordance with S&P's criteria, it will no
longer recognize the instrument as having intermediate equity
content after the first call date in February 2018, because the
remaining period until its economic maturity would, by then, be
less than 20 years.  However, S&P will classify the instrument's
equity content as intermediate until the first call date as long
as it believes that the loss of the beneficial intermediate
equity content treatment will not cause Telekom Austria to call
the instrument at that point.  Telekom Austria's willingness to
maintain or replace the instrument in the event of a
reclassification of equity content to minimal is underpinned by
its aforementioned statement of intent.

KEY FACTORS IN S&P'S ASSESSMENT OF THE INSTRUMENT'S DEFERABILITY

In S&P's view, Telekom Austria's option to defer payment of
interest on the proposed securities is discretionary.  This means
that the company may elect not to pay accrued interest on an
interest payment date because it has no obligation to do so.
However, any outstanding deferred interest payment would have to
be settled in cash if Telekom Austria declares or pays an equity
dividend or interest on equal-ranking securities, and/or if
Telekom Austria or any of its subsidiaries redeems or repurchases
common shares or equal-ranking securities.  S&P sees this as a
negative factor in its assessment of equity content.  That said,
this condition remains acceptable under S&P's rating methodology
because once the issuer has settled the deferred amount, it can
choose to defer payment on the next interest payment date.

Telekom Austria retains the option to defer coupons throughout
the instrument's life.  The deferred interest on the proposed
securities is cash-cumulative, and will ultimately be settled in
cash.

KEY FACTORS IN S&P'S ASSESSMENT OF THE INSTRUMENT'S SUBORDINATION

The proposed securities (and coupons) are intended to constitute
direct, unsecured, and deeply subordinated obligations of Telekom
Austria.  The proposed securities rank junior to all present and
future unsubordinated and subordinated obligations of the
company, and are only senior to share capital.  As per S&P's
criteria, however, S&P only notch the proposed notes down by one
notch despite their deep subordination.



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B E L G I U M
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DEXIA CREDIOP: Fitch Affirms 'ccc' Viability Rating
---------------------------------------------------
Fitch Ratings has affirmed Dexia Crediop's Long-term Issuer
Default Rating (IDR) at 'BBB+', Short-term IDR at 'F2', Viability
Rating (VR) at 'ccc', and Support Rating at '2' and removed the
Long-term and Short-term IDRs from Rating Watch Negative (RWN).
The Outlook for the Long-term IDR is Negative.

Rating Action Rationale

Crediop's IDRs are based on support from its majority owner Dexia
('A+'/Negative), which through its French subsidiary Dexia Credit
Local (DCL, 'A+'/Negative) holds a 70% stake in Crediop. Dexia's
IDRs are based on support from the French, Belgian and Luxembourg
authorities. Fitch continues to believe that there is a high
probability that Dexia would provide support for Crediop, and
that this support would ultimately come from Dexia's
shareholders, which include the states of France and Belgium.
There is a three-notch difference between the Long-term IDRs of
Crediop and DCL. This reflects Fitch's opinion that Crediop's
strategic importance for Dexia is not core and could decline over
time.

Crediop's ratings were originally placed on RWN in February 2010,
after the agreement reached between France, Belgium and
Luxembourg and the European Commission for DCL's parent bank
Dexia ('A+'/Negative) to sell its stake in Crediop by 31 October
2012. Fitch has removed the RWN on Crediop's IDRs because the new
restructuring plan presented to the European Commission by Dexia
in March 2012, which does not include the sale of Crediop, was
approved in December 2012. Crediop's IDRs and Support Rating have
been affirmed because in Fitch's opinion Dexia's propensity and
ability to provide support under the new restructuring plan
remains strong and the European Commission has not imposed
restrictions on Dexia's ability to support Crediop. The Negative
Outlook reflects that on the parent bank.

RATING DRIVERS AND SENSITIVITIES - IDRS AND SUPPORT RATING

Crediop's IDRs are sensitive to a change in DCL's Long-term IDR.
Should this be downgraded, Crediop's Short- and Long-term IDRs
would be affected. Crediop's Long-term IDR is also sensitive to
Italy's sovereign rating ('A-'/Negative), as Fitch expects that
the bank's Long-term IDR will remain at most at the same level as
the sovereign rating. This reflects the close correlation between
Crediop's risk and Italian sovereign risk. Crediop's Support
Rating is sensitive to a change in DCL's propensity to provide
support.

RATING DRIVERS AND SENSITIVITIES - VR

The affirmation of Crediop's VR reflects Fitch's belief that the
viability of Crediop's business model is low in current market
conditions. The bank relies heavily on funding from the ECB and
from its parent. The bank has reported net losses since 2010,
reflecting structural problems stemming from high pressure on
margins.

The bank's VR is sensitive to changes in the bank's funding
conditions and performance. The outlook for these two areas is
challenging. Further deterioration in the economic environment
could materially impact loan impairment charges which, to date,
have been modest. Given high leverage, high risk concentrations
with limited risk diversification away from Italy, impairments,
and thus capital erosion, could prove substantial, although there
is no evidence of this at present. Fitch believes there are
limited prospects for an upgrade of the VR in the short term.

The rating actions are:

  -- Long-term IDR: affirmed at 'BBB+', RWN removed; Negative
     Outlook
  -- Short-term IDR: affirmed at 'F2'; RWN removed
  -- Viability Rating: affirmed at 'ccc'
  -- Support Rating: affirmed at '2'


TELENET GROUP: S&P Affirms 'B+' Long-Term Corp. Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Belgium-based cable operator Telenet Group Holding N.V. to stable
from positive.

At the same time, S&P affirmed its 'B+' long-term corporate
credit rating on Telenet and S&P's 'B+' issue ratings on its
senior secured debt.  The recovery ratings on these instruments
remain unchanged at '3', indicating S&P's expectation of
meaningful (50%-70%) recovery in the event of a payment default.

The outlook revision primarily reflects S&P's opinion that
international cable operator Liberty Global Inc.
(B+/Positive/--)'s increased ownership of Telenet will likely
translate into a more aggressive financial policy at Telenet
going forward, including maintenance of higher debt leverage and
the use of Telenet's cash flow and existing cash reserves for
substantial shareholder returns.  S&P is therefore revising its
assessment of Telenet's financial risk profile to "highly
leveraged" from "aggressive."

"In our base-case scenario, we anticipate that Telenet's ratio of
gross debt to EBITDA, as adjusted by us, will remain at more than
4.5x over the next 12-18 months.  Our view is underpinned by
Liberty Global's publicly stated intention to align Telenet's
leverage policy with that of its group, which targets total gross
debt to EBITDA (excluding finance leases) of 4x-5x.  In addition,
Liberty Global has stated that it could consider increasing
indebtedness at Telenet in excess of that range.  Therefore, we
anticipate that Telenet's ability and willingness to deleverage
will likely remain constrained in the near to medium term,
despite our anticipation of steady EBITDA growth," S&P said.

On Sept. 30, 2012, Telenet's adjusted ratio of gross debt to
EBITDA was a high 5.4x, materially up from 4.2x at year-end 2011.
This followed Telenet's issuance, in August 2012, of an
additional EUR450 million and EUR250 million in senior secured
notes, due 2022 and 2024, respectively.  S&P do not net Telenet's
reported debt against available surplus cash, because S&P
considers the likelihood of Telenet utilizing these cash balances
for shareholder returns in the near term as high.  S&P also notes
that Telenet's ratio of last-12-months' free operating cash flow
(FOCF) to debt at end-September 2012 remained modest at 6%,
including EUR113 million of dividend payments and before EUR412
million in capital reduction and share buybacks.

In S&P's view, additional constraints on Telenet's financial risk
profile are the company's sizable interest payments and capital
expenditures, which limit its free cash flow.  Telenet's robust
operating cash flow generation and long-term capital structure,
with no meaningful debt maturities until 2017, partly offset
these constraints.

"We continue to view Telenet's business risk profile as
"satisfactory."  This reflects our view of the company's strong
business positions as the leading provider of broadband and pay-
TV services in its geographic footprint; its strong network
capabilities and scalable infrastructure; and our projections
of solid revenue and EBITDA growth potential through increasing
penetration of bundled products (cable television, broadband
Internet, and fixed-line and mobile telephony) in the next three
years.  However, we believe that ongoing competition for
broadband Internet and telephony services from fixed-line and
mobile network telecom operators, and the successful development
of the Internet-based TV product of Belgian telecom incumbent
operator, Belgacom S.A., combined with Telenet's partial network
coverage, could somewhat dampen the company's revenue growth
prospects.  We also believe that the company's limited geographic
diversification leaves it more vulnerable to potential adverse
changes in regulation and market dynamics.  Our assessment of
Telenet's management and governance is satisfactory," S&P noted.

The stable outlook reflects S&P's view that Telenet will report
sustained revenue and EBITDA growth from increasing penetration
of bundled products.  It also takes into account S&P's
anticipation that Telenet will maintain a very aggressive
financial policy under the influence of its majority shareholder
Liberty Global, resulting in adjusted gross debt leverage of more
than 4.5x over the next 12-18 months.

Rating upside is constrained by Telenet's high leverage and S&P
S&P's expectations of substantial shareholder distributions in
excess of FOCF generation.  However, S&P could consider raising
its rating on Telenet if the company's adjusted gross leverage
declines to about 4.5x or less on a sustainable basis.  That
said, before considering a positive rating action, S&P will need
to reassess Liberty Global's strategy and financial policy with
regard to the Belgian subsidiary.

Furthermore, the small distinctions that S&P sees between the
credit quality of Telenet and Liberty Global, as well as Liberty
Global's control of Telenet's business strategy and financial
policy would likely limit any potential future differential
between the ratings on the two entities.

S&P could lower the rating if Telenet's ratio of adjusted debt to
EBITDA were to increase to more than 6x, for example, as a result
of an even more aggressive financial policy or operating
underperformance.  However, S&P views this scenario as unlikely
at this stage.



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B U L G A R I A
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VMZ SOPOT: Plovdiv Ct. Moves Insolvency Claim Hearing to Feb. 18
----------------------------------------------------------------
SeeNews reports that the district court in the city of Plovdiv
said on Monday it has postponed the hearing on an insolvency
claim against VMZ Sopot to February 18.

The claim was filed by Bulgarian machine construction company
Mehanichen Zavod - Devin, SeeNews discloses.

According to SeeNews, the court said in a statement on its Web
site that the reason for the postponement is to enable the
parties to present additional evidence.

As reported by the Troubled Company Reporter on January 22, 2013,
SeeNews related that Mehanichen Zavod - Devin filed with a local
court an insolvency claim against VMZ Sopot.  Last week, the
energy ministry said VMZ Sopot should downsize its staff by some
60% to 1,200 in order to avoid bankruptcy and find a buyer,
SeeNews disclosed.  The ministry's statement was released
following a decision by the country's privatization agency to
cancel a procedure for the sale of a 100% stake in the company
after the sole candidate buyer, local company Emko, failed to
submit a deposit guarantee of EUR3 million (US$4.0 million),
SeeNews recounted.

VMZ Sopot is a state-owned arms manufacturer.



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D E N M A R K
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* DENMARK: Won't Bail Out Too-Big-to-Fail Banks
-----------------------------------------------
Frances Schwartzkopff and Peter Levring at Bloomberg News report
that Denmark's government isn't planning to support banks deemed
too big to fail and will instead require lenders to hold enough
extra capital to protect taxpayers from another banking crisis.

"The too-big-to-fail designation means they need to ensure
they have the extra capital buffers, not that the state will
bail them out should they get into trouble," Bloomberg quotes
Benny Engelbrecht, head of the parliament's business committee
overseeing bank industry legislation, as saying in a phone
interview on Jan. 21.  "It's of principle importance to this
government to protect taxpayers."

A lawmaker-appointed panel is due to present its recommendations
on Denmark's Sifis by March, Bloomberg discloses.  The proposals
will include a list of which banks should be deemed too big to
fail and how much extra capital they must hold, Bloomberg notes.
It will also address the need for living wills that would work as
roadmaps for orderly resolution, Bloomberg states.

"The intention is that taxpayers never have to put money
toward a bank bailout," Mr. Engelbrecht, as cited by Bloomberg,
said.  "The model here in Denmark is that the banks provide the
funds that might be needed to support the sector, corresponding
to 1 percent of the industry's insured net deposits."

Mr. Engelbrecht said that should the amount needed to support
banks exceed the reserves set aside by the industry, then any
state funds used to make up the difference would be reclaimed by
requiring banks to pay until taxpayers are reimbursed and the 1
percent buffer of insured net deposits is restored, Bloomberg
relats.

A proposed European bank resolution and recovery directive,
adopted by the European Commission in June, has yet to be agreed
on, Bloomberg states.



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F R A N C E
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ATARI SA: U.S. Unit to Separate, Files for Bankruptcy
-----------------------------------------------------
On January 21, 2013, Atari Inc., Atari Interactive Inc.,
Humongous, Inc. and California US Holdings, Inc. filed petitions
for relief under chapter 11 of the United States Bankruptcy Code
in the United States Bankruptcy Court for the Southern District
of New York.  With this move, the U.S.-based Atari operations
seek to separate from the structural financial encumbrances of
their French parent holding company, Atari S.A. (formerly
Infogrames S.A.) and secure independent capital for future
growth, primarily in the areas of digital and mobile games.

Within the next 90 to 120 days, the Companies expect to
effectuate a sale of all, or substantially all, of their assets
in a "sale free and clear" under section 363 of the Bankruptcy
Code or to confirm plans of reorganization that accomplish
substantially the same result.  These assets include not only one
of the most widely recognized brand logos, which is familiar to
90% of Americans, according to a recent survey, but also
legendary game titles including Pong(R), Asteroids(R),
Centipede(R), Missile Command(R), Battlezone(R) and Tempest(R).
Other recognized brands include Test Drive, Backyard Sports and
Humongous.

Under current management, Atari Inc. has shifted its business
from traditional retail games to digital games and licensing with
an increased focus on developing mobile games based on some of
Atari's most iconic and enduring franchises.  With these moves,
the company has added new revenue models, including digital
download and advertising.  As a result, Atari Inc. has become a
growth engine for Atari S.A., which in turn has reported
consecutive annual profits in 2011 and 2012.

The company has recently launched a slew of chart-topping titles
for iOS and Android mobile platforms, including Atari(R) Greatest
Hits, Outlaw(TM), Breakout(R) and Asteroids Gunner(R).  The
company has previously announced upcoming mobile and tablet games
based upon the popular Rollercoaster Tycoon franchise and Atari
Casino.

The Chapter 11 process constitutes the most strategic option for
Atari's U.S. operations, as they look to preserve their inherent
value and unlock revenue potential unrealized while under the
control of Atari S.A. During this period, the company expects to
conduct its normal business operations.

The U.S. companies are also seeking approval to obtain
$5.25 million in debtor-in-possession financing from one or more
funds managed by Tenor Capital Management, a firm specializing in
convertible arbitrage and special situations.  Each unit has
filed a number of traditional "first-day" pleadings, which are
intended to minimize any disruption of their day-to-day
operations.

Peter S. Partee, Sr. and Michael P. Richman of Hunton & Williams
LLP are proposed to serve as lead counsel for the U.S. companies
in their respective Chapter 11 cases.

                            About Atari

Atari -- http://www.atari.com-- is a multi-platform, global
interactive entertainment and licensing company.  Atari owns
and/or manages a portfolio of more than 200 games and franchises,
including world renowned brands like Asteroids(R), Centipede(R),
Missile Command(R), Pong(R), Test Drive(R), Backyard Sports(R),
and Rollercoaster Tycoon(R).  Atari capitalizes on these powerful
properties by delivering compelling games online (i.e. browser
and digital download), on smartphones and tablets and other
connected devices.  The Company also develops and distributes
interactive entertainment for video game consoles from Microsoft,
Nintendo and Sony.  As a licensor, Atari extends its brand and
franchises into other media, merchandising and publishing
categories.


PESCAROLO TEAM: Owner Contemplates Future as Team Liquidates
------------------------------------------------------------
Gary Watkins at autosport.com reports that sportscar legend Henri
Pescarolo has not ruled out continuing as a team owner after his
company went into liquidation on Tuesday.

autosport.com relates that the company, known as Pescarolo Team
in its final incarnation, was liquidated by a French court after
a six-month period during which it was protected under law from
its creditors in a procedure akin to Chapter 11 in the US.

A survival plan for the squad, which withdrew from the World
Endurance Championship after a disastrous Le Mans 24 Hours, had
to be presented to a commercial court in Le Mans at the end of
that period, according to the report.

"It is not the right time to find new sponsors or investors. I
had no real solution to present to the court," the report quotes
Mr. Pescarolo as saying.  "This means that Pescarolo Team doesn't
exist any more as a company, but if I want to, I can continue. I
still own the workshops and all the mechanics [who were paid by
the government during the protection period] are available."

Mr. Pescarolo explained that his team could work with another
entrant at this year's Le Mans 24 Hours, autosport.com relays.

The 70-year-old added that he would spend some time contemplating
his future over the coming weeks.

Mr. Pescarolo estimated the company's debt at "less than
EUR200,000".  He blamed the breakdown of his deal with the Luxury
Racing Ferrari team to become a partner in his new LMP1 project
for Pescarolo's financial problems, the report adds.


* FRANCE: Moody's Highlights Negative Impact of Overindebtedness
----------------------------------------------------------------
Moody's Investor Service has just published the January edition
of Credit Insight, a monthly structured finance newsletter, which
provides Moody's views on recent developments in European
residential mortgage-backed securities (RMBS), assets-backed
securities (ABS) and covered bonds.

In the latest publication, Moody's discusses the credit negative
impact on French ABS and RMBS of elevated over-indebtedness
levels in 2011-12. Over-indebtedness among French consumers
arises in the form of revolving credit, which is predominantly
used by lower income borrowers. While Moody's-rated French auto
loan ABS and RMBS will not be affected by over-indebtedness
trends, the overall impact of historically high levels of over-
indebtedness will be credit negative for portfolios of loans
originated to French consumers.

Moody's Credit Insight newsletter also discusses the performance
of the Greek RMBS market, in which losses remain at relatively
low levels considering the deterioration in the country's
macroeconomic indicators. While delinquency levels remain low,
however, Moody's outlook for Greek RMBS collateral remains
negative in 2013 as wages continue to fall and unemployment to
rise, putting further pressure on household finances.

In addition, the newsletter discusses how UK non-conforming RMBS
performance will remain stable in 2013 buoyed by housing supply
shortages, which, combined with the current low interest rate
environment, will continue to support UK house price stability.
However, the lack of refinancing options for interest only
mortgage borrowers and exposure to "mortgage prisoners" could
lead to credit deterioration in UK non-conforming RMBS pools in
the unexpected case where interest rates rise significantly.



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G R E E C E
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NEWLEAD HOLDINGS: Enters Into Coal Reserve Property Agreement
-------------------------------------------------------------
NewLead Holdings Ltd. on Jan. 17 disclosed that the Company has
entered into an agreement to acquire title and excavation rights
in properties containing 18.6 million tons of estimated coal
reserves for $11.0 million.  NewLead also entered into an
agreement to acquire ownership and leasehold interests in
properties containing approximately 143.1 million tons of coal
for $55.0 million.

Michael Zolotas, President and Chief Executive Officer of
NewLead, stated, "We have expanded our recently launched
commodities business with the agreement to acquire an estimated
18.6 million tons of coal reserves.  We are in the process of
acquiring additional coal properties with reserves estimated at
approximately 143.1 million tons.  Once we have acquired all of
the assets, our coal reserves will consist primarily of sub
bituminous B coal, which is 13,500 BTU with low sulfur.  We will
also have 'Blue Gem' and 'Rich Mountain' seams of coal, highly
sought after in the international market.  We believe that our
international shipping expertise will allow us to exploit the
demand for these coal reserves."

Michael Zolotas continued, "In entering the mining business, we
undertook to secure supply contracts for the coal reserves.
Consequently, we entered into two agreements to supply coal to
third parties.  These agreements are expected to generate $873.5
million of revenue over a three-year period.  Based on our
projections of operating costs, we believe that these sales will
have healthy margins and will generate significant cash flow with
which to fund continued growth.  We intend to supplement the
supply agreements by allowing contract miners to mine and pay us
a royalty for coal removed."

            Coal and Natural Gas Reserve Acquisitions

As of December 28, 2012, NewLead entered into an agreement to
acquire title and mineral excavation rights to 5,000 acres of
land in Kentucky.  The coal reserves in these properties are
estimated to be approximately 18.6 million tons.  The transaction
is subject to execution and delivery of certain definitive
agreements and other closing conditions, but is currently
expected to close by January 29, 2013.  There can be no assurance
that the transaction will be consummated.  The consideration of
$11.0 million was paid in the form of notes maturing on January
29, 2013. The notes do not accrue interest, but remain subject to
a guaranty by the initial purchaser and are secured by a mortgage
lien and a security interest in the assets being purchased.

NewLead has also entered into an agreement to acquire ownership
and leasehold interests in 18,335 acres in Tennessee containing
coal and natural gas and other natural resources.  The agreement
contemplates that the Company will acquire rights, title, permits
and leases to coal mines with total reserves estimated at 143.1
million tons.  The transaction is subject to execution and
delivery of certain definitive agreements and other closing
conditions, but is currently expected to close in February 2013.
There can be no assurance that the transaction will be
consummated.  The agreement contemplates that consideration of
US$55.0 million shall be payable in cash in two installments;
US$30.0 million at closing and the remaining US$25.0 million on
the first anniversary of the closing.

The estimated reserves stated above are as determined by
independent appraisals.  The methodology used by the independent
appraisers was not compliant with the methodology required by the
Securities and Exchange Commission ("SEC") in reserve reports
and, accordingly, should not be relied upon.  Such reserve
information is only provided to give the best currently available
information. NewLead is undertaking to obtain reserve reports
that comply with SEC methodology. Such reports may differ
materially from the information provided herein.

The properties in Tennessee and Kentucky also include natural gas
wells and projects relating to extraction of timber, sand,
gravel, fly ash and dimension stone. Third parties are currently
extracting these commodities on the properties and paying
royalties.

                      Coal Supply Contracts

NewLead signed two coal supply contracts with creditworthy
counterparties for the sale of coal to such parties.  Annual
revenue from these two contracts is expected to be US$184.7
million in the first year, US$318.4 million in the second year
and US$370.4 million for the third and final year.

The first contract provides for the sale of 70,000 tons of coal
per month for the first 12 months (840,000 tons annually),
increasing to 140,000 tons per month for the second year (1.68
million tons annually) and 210,000 tons per month for the third
year (2.52 million tons annually). All tonnage is subject to a
variation of 5%.  The price was established based on the
prevailing market price for coal at the time the contract was
entered into.

The second contract provides for the sale of 130,000 metric tons
per month for the first 12 months (1.56 million metric tons
annually), increasing to 210,000 metric tons per month for the
second and third years (2.52 million metric tons annually). All
tonnage is subject to a variation of 5%.  The price was
established based on the prevailing market price for coal at the
time the contract was entered into.

NewLead intends to source the coal to meet such contracts from
the estimated reserves discussed above, but to the extent it is
unable to do so, it will be required to seek to source the coal
from other suppliers at the prevailing prices.

                         Management Company

NewLead also entered into an agreement to acquire a local coal
mining management company in exchange for compensation, paid in
the form $3.0 million in common shares of NewLead and a warrant
for $6.4 million in common shares of NewLead.  Such acquisition
is subject to a number of terms and conditions and there is no
assurance it will be consummated.  The management company shall
be responsible for managing the daily operations of the coal
mines and the excavation of the coal from the properties.

                      About NewLead Holdings

NewLead Holdings Ltd. -- http://www.newleadholdings.com-- is an
international, vertically integrated shipping company that owns
and manages product tankers and dry bulk vessels.  NewLead
currently controls 22 vessels, including six double-hull product
tankers and 16 dry bulk vessels of which two are newbuildings. N
ewLead's common shares are traded under the symbol "NEWL" on the
NASDAQ Global Select Market.

PricewaterhouseCoopers S.A. in Athens, Greece, said in a May 15,
2012, audit report NewLead Holdings Ltd. has incurred a net loss,
has negative cash flows from operations, negative working
capital, an accumulated deficit and has defaulted under its
credit facility agreements resulting in all of its debt being
reclassified to current liabilities.  These raise substantial
doubt about its ability to continue as a going concern, PwC said.



=============
H U N G A R Y
=============


MAV ABE: Liquidator Pays Out HUF400MM in Damages on Policies
------------------------------------------------------------
MTI-Econews reports that liquidator Hitelintezeti Felszamolo
Nonprofit paid out about HUF400 million in damages in the first
half of January on domestic mandatory vehicle insurance policies
of MAV ABE, which went bust in 2008.

A law passed at the end of last year requires the Hungarian
Insurers Association (MABISZ) to produce the money for the
damages reported before December 15, 2009 on MAV ABE mandatory
vehicle insurance policies, MTI-Econews relates.

The liquidator started paying the damages on January 7,
MTI-Econews discloses.

MAV ABE attracted some 200,000 clients with its mandatory vehicle
insurance policies by undercutting competitors' premiums,
MTI-Econews notes.  The company lost its license and became the
subject of an embezzlement investigation, MTI-Econews recounts.



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


BIZ FINANCE: Fitch Assigns 'B' Final LT Rating to US$500MM Notes
----------------------------------------------------------------
Fitch Ratings has assigned Biz Finance PLC's USD500 million issue
of fixed-rate limited recourse notes a final Long-term rating of
'B' and a Recovery Rating of 'RR4'. The issue has a maturity date
of Jan. 22, 2018, and a coupon rate of 8.75%.

The notes are to be used solely for financing a loan to Ukraine-
based JSC The State Export-Import Bank of Ukraine.


CBOM FINANCE: Fitch Assigns 'BB-' Rating to Recourse Loan Notes
---------------------------------------------------------------
Fitch Ratings has assigned Ireland-based CBOM Finance p.l.c.'s
upcoming issue of limited recourse loan participation notes an
expected Long-term 'BB-(EXP)' rating. The final rating is
contingent on the receipt of documents conforming materially to
information already received.

The proceeds are to be used solely for financing a loan to
Russia's Credit Bank of Moscow (open joint-stock company) (CBOM),
rated Long-term Issuer Default Rating (IDR) 'BB-', Short-term IDR
'B', National Long-term Rating 'A+(rus)', Viability Rating of
'bb-', Support Rating '5' and Support Rating Floor 'NF'. The
Outlooks for CBOM's Long-term IDRs and National Long-term rating
are Stable.

The notes will have a put option exercisable if the current
majority shareholder ceases, at any time, to control directly or
indirectly 50% plus one share of CBOM, which results in CBOM's or
the notes' rating being downgraded by any of international rating
agencies.

CBOM is a medium-sized Moscow-based bank focusing on corporate
lending, the 20th largest in Russia by assets at end-H112, 85%
owned by Roman Avdeev. EBRD, IFC and RBOF Holding Company I Ltd.
(a wholly-owned subsidiary of IFC Russian Bank Capitalization
Fund, LP, which forms a group of companies with IFC) hold
minority stakes in CBOM.



===================
K A Z A K H S T A N
===================


BTA BANK: Fitch to Review Ratings by End-Q113 After Restructuring
-----------------------------------------------------------------
Fitch Ratings expects to review Kazakhstan-based BTA Bank's
ratings by end-Q113, following the recent completion of the
bank's restructuring. The review will be finalized following the
provision by BTA of necessary data and a meeting with the bank's
management. The bank's Issuer Default Ratings (IDRs) were
downgraded to 'RD' (Restricted Default) in January 2012 when BTA
ceased to service its wholesale obligations and began the
restructuring process.

Fitch's upcoming review will focus, among other things, on:

- the level of BTA's capitalization following the restructuring,
   the quality of its core capital and likely future
   capitalization trends given performance and growth forecasts

- asset quality and the adequacy of created loan impairment
   reserves (LIRs)

- the level of possible future operating losses and net cash
   consumption, and the likelihood of any improvement in
   performance

- prospects for development of BTA's franchise under the bank's
   new management.

In light of weaknesses in asset quality and expected performance,
uncertainty about any possible further support for BTA and the
absence of any track record of the bank under its new management,
it is unlikely that the bank's Long-term IDRs will be higher than
the 'B' category.

As a result of the restructuring, US$2.9 billion of obligations
to senior unsecured creditors, including bond and discount note
holders but excluding recovery note holders, were written down by
US41.3 billion. This equated to 44% of their claims, including
cash recoveries and the notional value of new notes. The haircut
was higher than 50% based on the new note market valuation
immediately after restructuring

A total of US$0.8 billion of subordinated debt, of which about a
quarter was held by Kazakh pension funds, was almost fully
written off. The bank has also rolled over its US$0.4 billion
trade finance facility. The holders of BTA's recovery notes (RN)
received a US$0.66 billion cash payment and a small portion of
newly issued bonds.

The bank's majority shareholder, the National Welfare Fund Samruk
Kazyna (SK), converted a US$1.2 billion deposit into new equity,
leading to its share in BTA increasing to 97.3% from 81.5%. SK
also provided a US$1.6 billion loan maturing in 12 years from the
day when it was granted. SK also raised the coupon rate on its
bonds owned by BTA to 6% from 4%.

Other creditors (including depositors and banks) were unaffected
by the restructuring process.



=================
L I T H U A N I A
=================


SNORAS BANK: Antonov's Extradition Hearing Adjourned Until July 8
-----------------------------------------------------------------
Tim Moynihan at Press Association reports that on Jan. 21, an
extradition hearing for Vladimir Antonov, the Russian former
owner of Portsmouth Football Club, was adjourned for nearly six
months.

According to Press Association, the case against Vladimir
Antonov, which is expected to last nearly two weeks, was
adjourned until July 8 at Westminster Magistrates' Court in
London.

Press Association relates the judge was told that at least 21
witnesses are expected to be called, including a number of
experts.

The extradition warrants issued by the Lithuanian authorities are
in connection with an alleged multimillion-pound fraud at a bank
formerly controlled by Mr. Antonov, Press Association discloses.

Lithuanian prosecutors issued a European arrest warrant for
Mr. Antonov and his Lithuanian business partner Raimondas
Baranauskas in November 2011 after naming them as the main
suspects in a pre-trial investigation into how hundreds of
millions of pounds in assets were allegedly stripped from Snoras
Bank, Press Association recounts.

The pair, who are fighting extradition, declined to comment after
the Jan. 21 hearing, Press Association notes.  Their conditional
bail was renewed, Press Association states.

According to Press Association, James Lewis QC, representing
Antonov, told the court he was hoping to call a Professor Morgan,
who was an expert on conditions in Lithuanian prisons.

                        About Bankas Snoras

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

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

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



===================
L U X E M B O U R G
===================


GEO TRAVEL: S&P Affirms 'B' Long-Term Corp. Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised its
outlook on online travel agent Geo Travel Finance SCA (Odigeo) to
stable from negative.  S&P also affirmed its 'B' long-term
corporate credit rating on Odigeo.

At the same time, S&P assigned a 'B+' issue rating to the
proposed EUR130 million super senior revolving credit facility
(RCF), one notch above S&P's corporate credit rating for the
group.  S&P assigned a recovery rating of '2' to the proposed
super senior RCF, indicating S&P's expectation of substantial
(70%-90%) recovery for bondholders in the event of a payment
default.  S&P also assigned a 'B' issue rating to the proposed
EUR325 million senior notes due 2019, in line with S&P's
corporate credit rating for the group.  S&P assigned the proposed
senior notes a recovery rating of '3', indicating S&P's
expectation of meaningful (50%-70%) recovery for bondholders in
the event of a payment default.

S&P also affirmed its 'CCC+' rating on the senior unsecured
notes.  The recovery rating is unchanged at '6' indicating S&P's
expectation of negligible (0%-10%) recovery in the event of a
payment default.

The outlook revision reflects S&P's expectation that Odigeo will
successfully refinance its senior bank facilities with the
proposed senior notes over the next couple of weeks.  It also
reflects S&P's view that the proposed transaction will improve
the group's liquidity position as it will remove most of the
group's maintenance covenants, headroom under which has been
tightening substantially.  S&P has therefore revised its
assessment on Odigeo's liquidity to "adequate" from "less than
adequate," under the proposed capital structure.

"We believe the transaction is likely to be executed relatively
swiftly, as we understand that the RCF is already underwritten,
although conditional on issuance of the notes.  We also
understand that proceeds from the proposed notes will be
predominantly used to refinance the group's existing senior bank
debt, so we expect pro forma leverage to remain relatively
stable.  However, we now anticipate slower deleveraging
prospects, given the elimination of periodic amortizations and
the cash flow sweep mechanism previously embedded in the
structure.  In addition, we expect a more aggressive financial
policy, as the proposed capital structure allows for more
flexibility in new investments," S&P said.

"The stable outlook reflects our view that the proposed
transaction will be completed in a timely manner, and that Odigeo
will maintain adequate liquidity during the next 12 months.  The
outlook also anticipates that the group's gross adjusted leverage
is unlikely to meaningfully decline from our expectations of
about 6.5x at fiscal year-end 2013.  In addition, we assume that
Odigeo will maintain its leading position and market shares in
online travel," S&P added.

Ratings pressure, which could cause S&P to lower the ratings on
Odigeo, could arise if:

   -- The transaction failed to complete promptly;

   -- Odigeo's operating performance deteriorated materially over
      the medium term;

   -- Lower discretionary spending in a weaker travel market, as
      well as rising competition, resulted in weakening credit
      protection measures, such as funds from operations to debt,
      including or excluding the subordinated shareholder
      convertible bonds, dipping well below 5%;

   -- Adjusted interest cover fell well below 1.5x (or 2.0x on a
      cash adjusted basis); or

   -- Liquidity weakened substantially, causing S&P to revise its
      assessment to less than adequate.

S&P believes that rating upside is limited over the next 12
months, given its view that deleveraging is unlikely under the
proposed capital structure.  However, S&P could consider a
positive rating action if Odigeo demonstrated consistent
operating performance and reduced gross adjusted leverage,
including the subordinated shareholder bonds, to below 5.0x in
fiscal 2013, while maintaining a financial policy consistent with
a higher rating.


Z BETA: Moody's Assigns '(P)B2' CFR; Outlook Stable
---------------------------------------------------
Moody's Investors Service has assigned a provisional Corporate
Family Rating of (P)B2 to Z Beta S.a.r.l. and a provisional
instrument rating of (P)B2 to EUR180 million of Senior Secured
Guaranteed Notes to be issued by Zobele Holding S.p.a., a wholly
owned subsidiary of Z Beta S.a.r.l. Upon confirmation of the
capital structure and assignment of definitive ratings, Moody's
would expect to assign a Probability of Default Rating of B2-PD
to Z Beta S.a.r.l. The outlook on all ratings is stable.

The assignment of definitive Corporate Family and Probability of
Default Ratings is subject to the successful closing of the
refinancing and placement of the EUR180 million senior secured
guaranteed notes.

The assignment of a definitive rating on the EUR180 million
senior secured guaranteed notes is subject to a review of the
associated documentation.

Moody's issues provisional ratings in advance of the final sale
of securities, and these ratings only represent Moody's
preliminary opinion. Upon a conclusive review of the transaction
and associated documentation, Moody's will endeavor to assign
definitive ratings to the securities. A definitive rating may
differ from a provisional rating.

Ratings Rationale

The (P)B2 Corporate Family rating assigned to Zobele reflects the
group's (i) leading market positions in the development and
manufacturing of air care and insecticide devices for the
consumer industry, (ii) strong and longstanding customer
relationships with blue chip companies in the "Fast Moving
Consumer Goods" (FMCG) segment such as Henkel, Procter & Gamble
and Reckitt Benckiser, (iii) exposure to defensive consumer goods
end markets notwithstanding that the demand for air care and
insecticide devices is more discretionary than other segments of
the consumer goods industry, (iv) acceptable barriers to entry
through an established track record and long term customer
relationships, technological know-know, a broad production and
distribution network, and through a large portfolio of products
and patents in its segments of aircare and insecticides devices,
and (v) the group's relatively good geographical diversification
notwithstanding that Zobele is currently largely exposed to
mature developed economies where penetration rates of air care
and insecticides devices is already high.

The current rating remains constrained by the group's (i)
relatively low and declining operating margins both at the EBITDA
level and in relation to the capital employed by the group, (ii)
customer concentration, with the top four customers accounting
for approximately 80% of group revenues (iii) constrained asset
base as a result of robust demand growth over the last three
years, driven by the strong growth of volumes supplied to key
global FMCG customers, which has negatively impacted operating
margins and free cash flow generation in the recent past due to
operating inefficiencies (210 basis points negative impact on
first margin over the last three years, which Moody's believes
has translated directly into the weaker EBITDA margin), and (iv)
relatively weak free cash flow generation, which is a reflection
of the group's relatively low operating margins and the working
capital and capex investments required to accommodate the strong
top line growth.

The liquidity profile of Zobele is adequate pro-forma of the
refinancing with approximately EUR26 million of cash on balance
sheet as adjusted for the offering of the notes and as of
September 2012, EUR30 million availability under the group's new
super senior revolving credit facility and approximately EUR15
million availability under existing factoring lines. Alongside
the group's operating cash flow generation (pre working capital),
which Moody's expects to range between EUR20 million and EUR30
million over the next two years this would be sufficient to cover
operating cash needs mainly resulting from working cash
(estimated at EUR10 million or 3% of revenues), working capital
swings of approximately EUR20-25 million (the insecticides
business is very seasonal and is expected to grow more strongly
over the next few years, which could increase the seasonal
working capital swings), capex required to grow the business
(estimated at around EUR20 million per annum) and potential
increases in working capital consumption beyond the seasonal
requirements. Moody's gains comfort from Zobele's portfolio of
very strong accounts receivable, which could be used to increase
the group's liquidity buffer if needed. Moody's notes that Zobele
is already using factoring as a source of liquidity with EUR15
million being currently raised.

Structural Considerations

The senior secured notes will be issued by Zobele Holding S.p.a.,
a wholly owned subsidiary of Z Beta S.ar.l. The notes will be
guaranteed and secured by at least 80% of the group's assets.

Zobele will also have access to a super senior revolver of
EUR30 million at closing of the transaction, which will not
include any maintenance covenants.

Moody's has not applied any notching to the notes due to the low
amount of the revolving credit facility, which ranks ahead of the
senior secured notes.

Moody's also notes that Zobele will convert a EUR146.5 million
shareholder loan into ordinary shares ahead of the placement of
the notes.

Positive pressure on the rating is currently not anticipated.
Positive pressure would arise over time if Debt / EBITDA would
drop below 4.0x and Zobele would generate sustainably positive
free cash flow leading to a stronger liquidity profile.

Debt/EBITDA trending towards 5.5x coupled with adjusted EBITDA
margin dropping below 12% as well as negative free cash flow
generation leading to a deterioration of the liquidity position
of the group would exert negative pressure on the rating.

Founded in 1919, Zobele is the world's leading developer and
manufacturer of air care and insecticide devices to major FMCG
(Fast moving consumer goods) companies including Henkel, Procter
& Gamble and Reckitt Benckiser. Zobele also markets its products
to regional FMCG companies or retailers such as Lidl, Carrefour
or Mercadona.

Zobele is majority owned by UK-based private equity firm Doughty
Hanson, which owns a 75.6% stake in the business. Zobele operates
7 manufacturing plants, 5 R&D centers, 2 innovation centers,
employs 4,600 people, generated revenues of EUR313 million and an
EBITDA of EUR40 million in 2011.

The principal methodology used in this rating was the Global
Packaged Goods published in December 2012. Other methodologies
used include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in
June 2009.


Z BETA: S&P Assigns 'B-' Long-Term Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B-' long-term corporate credit rating to Luxembourg-incorporated
Z Beta Sarl (Zobele), the parent of Italian company Zobele
Holding SpA, a global producer of air care and insecticide
devices.  At the same time, S&P placed the rating on CreditWatch
with positive implications.

S&P also assigned a 'B' issue rating to the proposed
EUR180 million senior secured bond to be issued by Zobele Holding
S.p.A.  At the same time S&P assigned a recovery rating of '4' to
the bond, reflecting its expectation of average (30-50%) recovery
in the event of payment default.

The positive CreditWatch implications indicate the likelihood
that S&P will raise Zobele's long-term rating to 'B' with a
positive outlook if the bond issuance is successfully completed
under the preliminary terms and conditions that S&P has reviewed.
These include amounts and maturity of the bond and the revolving
credit facility (RCF), absence of maintenance covenants, and the
conversion of the group's entire shareholder loan into equity.

Zobele's 'B-' corporate credit rating is constrained by its view
of its "less-than-adequate" liquidity position, and its high
debt-to-EBITDA ratio.

S&P also calculate a Standard & Poor's adjusted ratio of debt to
EBITDA, including the shareholder loan, in excess of 7x, and S&P
anticipates limited deleveraging without refinancing and
conversion of the entire shareholder loan into equity due to the
payment-in-kind (PIK) characteristics of the shareholder loan.
This translates into S&P's assessment of Zobele's financial
profile as "highly leveraged."

"We view Zobele's business risk profile as "weak," reflecting its
fairly small scale of operations and bargaining power with its
customers, mostly large household and personal care companies.
In our opinion, Zobele is highly reliant on its top four
customers--including Henkel AG & Co KGaA (A/Stable/A-1), Procter
& Gamble Co. (AA-/Stable/A-1+), Reckitt Benckiser Group PLC
(A+/Stable/A-1)--that represent nearly 80% of its sales.
However, this is tempered by S&P's view of Zobele's solid
position in the growing niche market of air care and insecticide
devices, its track record of innovation, and its long-standing
relationship with the large household and personal care players,"
S&P said.

The proposed transaction includes a EUR180 million bond whose
proceeds will be used to repay all outstanding bank debt, an
undrawn EUR30 million RCF, and the conversion of the full
shareholder loan into equity.  S&P understands that none of the
instruments will carry maintenance covenants.  Bullet maturities
and lack of maintenance covenants will improve the group's
liquidity into "adequate" territory after the transaction.
Moreover, S&P calculates that adjusted leverage will decline to
about 5x after the proposed transaction.  Sustained leverage
below 5x could lead to an improvement of the financial profile to
"aggressive."

The positive CreditWatch implications reflect the likely
enhancement of Zobele's liquidity profile and financial risk
profile upon successful completion of the proposed transaction.
S&P could raise the corporate credit rating to 'B' and assign a
positive outlook if the transaction was completed under the
preliminary terms that S&P has reviewed, including the amount and
maturity of the bond and RCF, the lack of maintenance covenants
in the new capital structure, and the conversion of the
shareholder loan in its entirety into equity.

S&P expects to resolve the CreditWatch placement on completion of
the proposed transaction, or, if the transaction is delayed, over
the next three months.



=====================
N E T H E R L A N D S
=====================


HARBOURMASTER CLO: Fitch Affirms 'B-' Rating on Class B2 Notes
--------------------------------------------------------------
Fitch Ratings has affirmed Harbourmaster CLO 10 B.V.'s notes, as
follows:

Class X (XS0331132935): affirmed at 'AAAsf'; Outlook Stable
Class A1 (XS0331138890): affirmed at 'AAAsf'; Outlook Stable
Class A2 (XS0331143973): affirmed at 'AAAsf'; Outlook Stable
Class A3 (XS0331156108): affirmed at 'AA-sf'; Negative Outlook
Class A4 (XS0331171081): affirmed at 'BBB-sf'; Negative Outlook
Class B1 (XS0331161017): affirmed at 'BB-sf'; Negative Outlook
Class B2 (XS0331162684): affirmed at 'B-sf'; Negative Outlook

The affirmation reflects the transaction's stable performance
since the last review. The Fitch weighted average rating factor
has improved to 28.9 as of Nov. 30, 2012, from 31.2 as of
Dec. 30, 2011, below its threshold of 30 and is now passing.
Assets rated 'CCC' represent 3.42% of the portfolio, down from
7.03% at the last review. Defaulted assets have increased to
2.78% from 1.6% of the total investment amount since the last
review.

The overcollateralization tests are currently passing, but the
additional coverage test is failing at a level of 106.17% below
its trigger of 106.37%. The class A interest coverage (IC) test
has been passing since close and its current level is 612.07%,
above its threshold of 107%. The increased level of the IC test
is due to the combination of an increasing weighted average
spread on the assets, increasing to 3.69% from 3.24% at the last
review, and a lower cost of the liabilities due to declining
interest rates. The Negative Outlook on the class A3 through B2
notes continues to reflect potential sensitivity to the leveraged
loan refinancing wall.

As part of its analysis, the agency considered the sensitivity of
the ratings on the notes to the transaction's exposure to
countries where Fitch has imposed a country rating cap lower than
the ratings on any notes in the transaction. These countries are
currently Spain, Ireland, Portugal and Greece, but may include
additional countries if there is sovereign ratings migration.
Fitch believes that an exposure of up to 15% of the total
investment amount to these countries, under the same average
portfolio profile and assuming the current ratings on the UK and
eurozone countries are stable, would not have a material negative
impact on the ratings of the notes.

Harbourmaster CLO 10 B.V. is a managed cash arbitrage
securitization of secured leveraged loans, primarily domiciled in
Europe. In particular, non-euro-denominated assets comprise
12.98% of the total investment amount, as of the November 30,
2012 report. The portfolio is managed by Blackstone/GSO Debt
Funds Europe Limited and the reinvestment period will end in
February 2013.

The class X, A1 and A2 notes' ratings address the timely payment
of interest and the ultimate repayment of principal by the stated
maturity date as per the governing documents. The class A3, A4,
B1, and B2 notes' ratings address the ultimate payment of
interest and the ultimate repayment of principal by the stated
maturity date as per the governing documents.


INDO ENERGY: Fitch Assigns 'B+' Rating to US$500MM Sr. Notes
------------------------------------------------------------
Fitch Ratings has assigned Indo Energy Finance II B.V.'s US$500
million senior unsecured 10 year 6.375% notes a final rating of
'B+' with a Recovery Rating of 'RR4'.

The final rating is in line with the expected rating assigned on
8 January 2013 and follows a review of final documentation
materially conforming to the draft documentation previously
reviewed.

The notes are rated at the same level as PT Indika Energy Tbk's
(Indika) Issuer Default Rating of 'B+', which has a Positive
Outlook, as the guarantee issued by Indika will rank equally in
right of payment with all unsecured, unsubordinated indebtedness
of the company.

The US$500 million proceeds from the notes issue are materially
higher than Indika's immediate liquidity requirements, including
its refinancing needs. Fitch, however, believes that Indika will
retain the remainder mostly for future refinancing needs. While
this may weaken Indika's interest coverage and gross debt based
leverage over the short term, its leverage net of cash will not
be materially affected. Further, the bonds' 6.375% annual coupon
is lower than Indika's current average borrowings costs of around
8.5%, and should help lower debt servicing cost for the company
over the long-term.

What Could Trigger A Rating Action?

Positive: Future developments that may individually or
collectively lead to a positive rating action include:

- A fall in adjusted debt net of cash/operating EBITDAR
   (including dividends from its associate Kideco) to below
   1.5x on a sustained basis. Leverage is expected to have
   been above 2x in 2012.

Negative: Future developments that may individually or
collectively lead to a negative rating action include:

- Large debt-funded investments, failure to ramp up production
   from its recently acquired coal mining company, PT Multi
   Tambangjaya Utama or coal prices falling materially from
   Fitch medium-term expectations, resulting in Indika being
   unable to reduce its leverage below 1.5x by end-2014.



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


* PORTUGAL: S&P Affirms 'BB/B' Sovereign Credit Ratings
-------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB/B' long- and short-term sovereign credit ratings on the
Republic of Portugal.  The outlook remains negative.

In S&P's view, Portugal's broad adherence to the policy terms
("conditionality") agreed with the Troika (the European
Commission, the IMF, and the European Central Bank [ECB]) under
the financial support program, as well as the ECB's monetary
policy response to eurozone financial fragmentation, have
improved Portugal's economic and financing conditions.
Confidence remains fragile, however, and subject to domestic and
external implementation risks.

"The ratings on Portugal are supported by the marked reduction in
the country's twin deficits: we estimate that the 2012 general
government deficit (excluding one-off items) declined to 6.1%,
from 11.3% in 2010, and the current account balance is expected
to move from a deficit of 10% of GDP on average between 2000-2010
to a small surplus in 2013," Standard & Poor's said.  "This rapid
improvement in Portugal's current account position has occurred
on the back of strong export performance--complemented by the
disciplined implementation of structural reforms--alongside a
significant drop in imports due to weak domestic demand."

"The ratings on Portugal are constrained by uncertain growth
prospects, high stocks of public- and private-sector external
debt, as well as challenges to Portugal's fiscal targets and what
our criteria classify as "moderate" contingent liabilities.  We
project that net general government debt will peak at 116% of GDP
in 2013 and 2014, before declining slowly as growth returns.  The
government's contingent liabilities emanate from Portugal's
relatively large and indebted government-related-entity sector,
public-private partnership contracts, and its domestic financial
institutions.  We forecast narrow net external debt to decline to
a still-very-high 200% of current account receipts by the middle
of the decade, from a peak of well over 300% in 2009, as the
economy's export capacity broadens," S&P said.

During 2013, S&P expects Portuguese GDP to contract by 1% in real
terms in what would be the third consecutive year of declining
output.  S&P believes another year of waning domestic demand will
challenge the government's budgetary revenue objectives, and
therefore the 2013 fiscal deficit target of 4.5% of GDP.

"In our opinion, risks to the social contract also remain.
Disposable incomes continue to dwindle as wages and employment
levels drop, the tax burden rises, and difficult domestic credit
conditions persist.  We believe a key policy risk is the
possibility that upcoming decisions by the Portuguese
Constitutional Court could prevent the government from proceeding
with its ambitious expenditure-led budgetary consolidation
program.  Several plaintiffs, including Portuguese president
Anibal Cavaco Silva and the main opposition party have referred
key elements of the 2013 budget to the Constitutional Court.  We
expect the Court to rule in first-half 2013 and further
anticipate that any adverse rulings will be met by the government
with new offsetting measures," S&P noted.

In S&P's view, there is a risk that an adverse ruling could shift
the burden of the fiscal adjustment from the expenditure to the
revenue side with negative implications for economic growth.  S&P
notes that between 2010 and 2012 fiscal adjustment occurred
almost entirely on the expenditure side, with nominal spending
down 10% over this period (though 2012 levels remained above pre-
crisis levels in nominal terms).  S&P believes that the major
parties in Portugal do not differ on the importance of cutting
net general government liabilities, even if they disagree on the
pace and means of achieving those cuts.

"We continue to see material risks in the Portuguese banking
sector despite the recent capital support provided by the
government.  The weak economy, rising unemployment, wage cuts,
and higher taxes are accelerating asset quality deterioration.
Nonperforming loans were 9.5% in June 2012 and we expect further
deterioration.  High credit losses will, in our view, result in
weak domestic profitability and--despite profits from foreign
operations--could erode banks' recently reinforced capital.
Additionally, while some access to market funding has returned,
the Eurosystem continues to provide a significant portion of
funding to the Portuguese banking system.  Moreover, we believe
that Portuguese banks will continue to deleverage to improve
their loan-to-deposit ratios," S&P said.

Standard & Poor's added: "The negative outlook reflects our view
of the risks to growth and economic rebalancing in the Portuguese
economy in light of high debt and debt servicing requirements.
Domestically, the negative outlook stems from our view of short-
term fiscal risks associated with the upcoming Constitutional
Court's ruling on key measures in the 2013 budget.  In our view,
an adverse ruling by the Constitutional Court could potentially
interrupt the government's progress on fiscal consolidation and
possibly lead to noncompliance with the current targets under the
EU/IMF program."

S&P could consider lowering the ratings if economic, political,
and social conditions in Portugal deteriorate such that the
government can no longer meet the terms of the EU/IMF program, or
if European institutions deviate from their commitment to
continuing official funding support for Portugal after the
completion of the current program, if needed.

"The ratings could stabilize at the current level if we observe
continued progress in Portugal's economic rebalancing and fiscal
consolidation, underpinned by a favorable Constitutional Court
ruling that does not create a fiscal gap that can't be addressed
by the government.  We also believe the vigorous implementation
of eurozone policies in response to the financial crisis could
support Portugal's creditworthiness both directly, by lower
financing costs, and indirectly, by improving the economic
outlook for its key export markets," S&P added.



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


INSURANCE GROUP: Fitch Affirms 'BB' IFS Rating; Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed OJSC Insurance Group MSK's Insurer
Financial Strength (IFS) rating at 'BB' and National IFS rating
at 'AA-(rus)'. The Outlook on both ratings is Stable.

Rating Rationale

The affirmation of IG MSK's ratings continues to reflect
strategic importance of IG MSK to one of its beneficiary
shareholders, Bank VTB (VTB; 'BBB'/Negative).

In Fitch's view, the beneficial impact of the ownership structure
has not been significantly affected by the revision of the
Outlook on VTB.

The ratings reflect the agency's expectations of financial and
operational support for IG MSK from VTB, which effectively holds
operational control in OJSC Metropolitan Insurance Group (MIG),
majority owner of IG MSK.

Rating Sensitivities

The ratings could be downgraded if VTB's rating was downgraded by
two notches or more, if the strategic importance of IG MSK to VTB
declined or if IG MSK fails to return to profitability by Q413.

IG MSKs ratings could be upgraded if it strengthens its capital
base further, improves its underwriting profitability (ie, a
combined ratio of below 100%) and de-risks its investment
portfolio.



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


BANCO POPULAR: S&P Puts 'CCC-' Pref. Stock Rating on Watch Pos.
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has placed its
'CCC-' issue rating on Spain-based Banco Popular Espanol S.A.'s
(Popular) preferred stock on CreditWatch with positive
implications.

The CreditWatch placement follows Popular's announcement of the
calling to assembly of the preferred stockholders for them to
approve an amendment to the existing terms and conditions of the
outstanding preferred securities, which amount to EUR123 million.

The amendment would include a move to a broad earnings definition
test from the current narrow one.  S&P considers that this, if
approved, would reduce the potential for nonpayment of dividends
because the dividend payment would be conditioned to a wider
definition of distributable profits, including distributable
reserves on top of the prior year's net profits.  S&P anticipates
that this amendment would enable the bank to pay dividends in
2013 on its outstanding preferred stock, despite the losses S&P
estimates that Popular will report at financial year-end 2012.

"All of the Spanish preferred stock issues that we rate currently
have their dividend payments conditioned to a narrow earnings
test, as per the terms and conditions of the issues.  This means
that the dividend distribution in any given year depends on the
existence of net profits in the previous year.  Consequently, our
rating approach for hybrids in Spain has, up until now, been to
notch down from the bank's stand-alone credit profile (SACP) by
three notches for banks whose SACP is investment grade and four
notches for those in speculative grade.  We have, nevertheless,
widened the notch differential in those cases where we saw losses
triggering mandatory nonpayment as increasingly likely, as a
result of the narrow earnings test.  This is the case for
Popular's preferred stock, which we currently rate five notches
below the bank's SACP of 'b+'," S&P said.

However, the potential change to a broad earnings test (which
includes distributable reserves) would lower the likelihood of
nonpayment of dividends, in S&P's view.  As a result, S&P would
likely rate preferred stock, including a broad earnings
definition test, two notches below the bank's SACP, if the SACP
was investment grade and three notches if it was speculative
grade.  In line with current regulation, the preferred stock
would continue to be computed as a Tier 1 capital instrument,
despite the broader earnings test.

S&P aims to resolve the CreditWatch placement within 90 days,
once the assembly of the preferred stockholders approves the
proposed change of the terms and conditions.  This will most
likely be in March 2013.  S&P would likely upgrade Popular's
preferred stock by two notches to 'CCC+' if the amendment is
approved as proposed, assuming that S&P's SACP on Popular remains
at the current 'b+' level.

Today's rating action does not affect the counterparty credit
ratings or any other issue ratings on Popular.

RATINGS LIST

Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From

Popular Capital S.A.
Preferred Stock*                       CCC-/Watch Pos     CCC-

Popular Preference (Cayman) Ltd.
Preference Stock*                      CCC-/Watch Pos     CCC-

*Guaranteed by Banco Popular Espanol S.A.


ENCE ENERGIA: Moody's Assigns '(P)Ba3' CFR; Outlook Stable
----------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba3
Corporate Family Rating ("CFR") to ENCE Energia y Celulosa SA
(ENCE). Upon confirmation of the capital structure and assignment
of definitive ratings, Moody's would expect to assign a
Probability of Default Rating of Ba3-PD. Concurrently, Moody's
assigned a provisional (P)B1 (LGD4, 63%) rating to the proposed
EUR250 million senior secured notes due 2020 to be issued by
ENCE. The outlook on all ratings is stable. This is the first
time that Moody's has rated ENCE.

The assignment of a definitive Corporate Family and Probability
of Default Rating is subject to the successful closing of the
refinancing and placement of the EUR250 million senior secured
notes. ENCE will use EUR243 million of the proceeds from the debt
issuance to repay existing bank borrowings and related interest
hedges. The remainder of the proceeds will be used to cover
transaction related fees and expenses.

Moody's issues provisional instrument ratings in advance of the
final sale of securities and these reflect the rating agency's
credit opinion regarding the transaction only. Upon a conclusive
review of the final documentation, Moody's will endeavor to
assign a definitive rating to the notes. A definitive rating may
differ from a provisional rating.

RATINGS RATIONALE

The assignment of a (P)Ba3 CFR for ENCE is based on the company's
relatively small size in relation to some of its peers with
reported revenues of EUR802 million in the last twelve months
ending September 2012 as well as limited geographic
diversification with the majority of sales in the mature European
market. The rating also accounts for the low segmental
diversification as well as the inherent volatility of the
industry with pulp being one of the most volatile commodities in
the forest products industry, both in terms of demand and
pricing.

More positively, the (P)Ba3 rating also reflects ENCE's position
as the largest hardwood market pulp producer in Europe, a market
that remains heavily reliant on imports with a solid focus on the
rather stable tissue end market, and increasing contribution from
alternative energy operations. While pulp producers in Latin
America benefit from lower cash production costs, compared to
Iberian producers, on a total cost basis, including depreciation
and interest cost, ENCE's pulp production appears cost
competitive. ENCE's performance over the past three years
suggests cost competitiveness considering lower transportation
costs and higher flexibility with regards to wood sourcing given
its low vertical integration. The rating also considers the solid
financial profile following the group's strategic transformation
over the past years with a moderate financial leverage of 2.7x as
of September 2012 (as adjusted by Moody's and including project
related non-recourse debt).

Moody's expects market conditions to deteriorate during 2013,
largely reflecting significant new pulp capacity currently under
construction and scheduled to ramp up over 2013-2015. This will
in Moody's view likely result in pricing pressure for pulp due to
at least temporary oversupply, despite the favorable long-term
growth trend in demand for pulp, driven by rising income levels
and living standards in developing economies. Lower pulp prices
and the negative impact from the recently announced reforms of
the Spanish electricity sector support Moody's view that ENCE may
not be able to improve its operating profitability over 2013.
While going forward, profitability should benefit from
incremental contribution from the group's Huelva biomass plant,
higher pulp capacity utilization, which was disrupted due to
technical problems in 2012, and additional cost savings targeted,
Moody's cautions that these positive factors might not be
sufficient to fully offset pressure from lower pulp pricing and
taxes on renewable energy production. At the same time, Moody's
expects the group's debt load to increase due to funding of the
Merida biomass plant which is currently under construction and
scheduled to become operational in Q4 2014. Moody's also cautions
that the rating is negatively affected by a track record of
negative free cash flow generation, owed to the group's expansion
of its pulp and energy operations. Besides the group's Merida
biomass generation plant currently under construction, Moody's
notes that ENCE does not pursue any material capex projects and
Moody's therefore expects capex spending to gradually reduce
going forward towards largely maintenance levels. Still, Moody's
expects free cash flow to be moderately negative also in 2013.

The stable outlook however reflects Moody's expectation that ENCE
will maintain acceptable credit protection measures for its
rating, despite anticipated pricing pressure and moderate
negative free cash flow generation, as indicated by Debt/EBITDA
as defined by Moody's below 3.5x and Retained Cash Flow / Debt in
the mid to high teen percentages. The stable outlook is also
predicated on ENCE successfully issuing its proposed high yield
notes, thereby removing refinancing risk and achieving an
extended debt maturity profile.

Following the proposed refinancing, Moody's anticipates that
ENCE's liquidity profile will be solid. Key internal cash sources
are cash available of EUR74 million following the refinancing as
well as internal cash flow generation. In addition, ENCE has
access to a revolving credit facility amounting to EUR90 million
and maturing in January 2018. Lending arrangements do not include
any maintenance financial covenants but only debt incurrence
tests. These sources should be sufficient to cover operational
cash needs such as working capital and capex spending. Following
the refinancing, there will be no material refinancing needs
before 2018, when the revolving credit facility matures.

A higher rating would require ENCE to build a track record of
resilient credit metrics through the cycle on the back of
benefits from a leaner cost structure and continued cost
competitiveness as well as benefits from its growing energy
operations. It would also require a period of positive free cash
flow generation following significant spending in an effort to
grow the group's pulp and energy footprint. Quantitatively,
Moody's would consider a positive rating action if Moody's
adjusted Debt/EBITDA were to remain materially below 3 times
through the cycle with RCF/Debt in the high teens and
EBIT/Interest expense above 2x consistently.

Negative pressure would build should market conditions for pulp
deteriorate to levels worse than currently expected as a result
of more severe pricing pressure or demand erosion as exemplified
by Debt/EBITDA staying above 3.5x on a Moody's adjusted basis
with RCF/Debt trending towards the low teen percentages. A
negative rating action could also be triggered by a weakening
liquidity profile or adverse news flow regarding alternative
energy regulation.

STRUCTURAL CONSIDERATIONS

The provisional (P)B1 rating assigned to the proposed EUR250
million senior secured notes is one notch below the group's
corporate family rating. The rating on this instrument reflects
its junior ranking behind the sizeable EUR90 million super senior
revolving credit facility (RCF) and trade payables. The RCF and
the senior secured notes share the same collateral package,
consisting of a pledge over certain assets (share pledges in most
operating companies, pledges of intercompany loans and pledges
over receivables and accounts) as well as upstream guarantees
from most of the group's operating subsidiaries, representing
more than 80% of aggregate assets and EBITDA. However, RCF
lenders benefit from priority treatment in a default scenario as
that their claims would be discharged before any remaining
proceeds would be distributed to the holders of the proposed
senior secured notes.

Assignments:

  Issuer: ENCE Energia y Celulosa, S.A.

    Corporate Family Rating, Assigned (P)Ba3

    Senior Secured Regular Bond/Debenture, Assigned (P)B1

    Senior Secured Regular Bond/Debenture, Assigned a range of
    LGD4, 63 %

The principal methodology used in this rating was the Global
Paper and Forest Products Industry published in September 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.

With sales of EUR802 million in the last twelve months ending
September 2012, ENCE, headquartered in Spain, is a leading
European producer of hardwood pulp and also has sizable
alternative energy operations in Spain. ENCE has production
capacity of about 1.3 million tonnes of bleached eucalyptus kraft
pulp at three mills in Spain, generating about 72% of group
sales. In its energy division, the group operates five co-
generation and two generation biomass plants, generating about
25% of group sales. ENCE also has some forestry operations,
generating the remaining 3% of group sales in 2012.


ENCE ENERGIA: S&P Assigns 'BB' Long-Term Corp. Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB' long-term corporate credit rating to Spanish pulp producer
ENCE Energia y Celulosa S.A. (ENCE).  The outlook is stable.

At the same time, S&P assigned its 'BB' issue rating to ENCE's
proposed EUR250 million senior secured notes due 2020.  The
recovery rating is '3', indicating S&P's expectation of
meaningful (50%-70%) recovery for lenders in the event of a
payment default.

The rating on ENCE reflects S&P's assessment of the company's
"fair" business risk profile and "significant" financial risk
profile, as defined in its criteria.

"Our assessment of ENCE's business risk profile as "fair"
reflects the risks intrinsic to the highly cyclical and capital-
intensive pulp industry, which requires recurrent sizable
investments in industrial facilities.  The business risk profile
is also constrained by ENCE's relatively limited size and
diversification compared with that of other rated forest products
companies.

These weaknesses are partly offset by the company's strong
profitability and competitive cost position, well-invested asset
base, and strong market position in Europe's hardwood eucalyptus
pulp industry.  A further strength is the company's strong
operating efficiency through its advanced logistics and biomass
energy integration.  ENCE also benefits from a stable customer
base, mainly in the relatively resilient and expanding paper
tissue market.  We assess the company's management and governance
as satisfactory," S&P said.

The stable outlook reflects S&P's view that ENCE's credit
measures will remain at levels it considers commensurate with the
'BB' rating -- specifically, FFO to debt of more than 20% and
adjusted debt to EBITDA of less than 4x (including project-
finance debt) -- even when pulp prices are at their lowest.  The
outlook also incorporates the company's investment program in
biomass energy, but S&P assumes that the company would take
measures to prevent leverage deteriorating significantly from the
current level.

The rating could come under pressure if market conditions
deteriorated, with weaker demand translating into lower sales
volumes and depressed pulp selling prices.  For example, S&P
would view a ratio of adjusted FFO to debt of significantly and
persistently less than 20% to be incommensurate with the rating.
However, S&P regards such a scenario as somewhat remote in the
near term.

Rating upside is limited over the short term, in S&P's view, due
to a potential softening of market conditions and the company's
investment ambitions.


PYMES BANESTO 3: S&P Assigns 'CC' Rating on Class C Notes
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its credit ratings to
PYMES BANESTO 3, Fondo De Titulizacion De Activos' (PYMES BANESTO
3) class A, B, and C notes.

This asset-backed securities (ABS) transaction securitizes a pool
of unsecured loans granted by Banco Espanol de Credito S.A.
(Banesto; BBB/Negative/A-2) to Spanish small and midsize
enterprises (SMEs) and self-employed borrowers.  Banesto also
acts as servicer, paying agent, and treasury account provider.

The main features of the transaction are:

-- The issuer is a "fondo de titulizacion de activos" (a Spanish
    special-purpose entity with the sole purpose of issuing
    notes).

-- PYMES BANESTO 3 has issued three classes of notes.  The class
    A and B notes are asset-backed notes, while the class C notes
    were issued to fund the reserve fund.  The class B and C
    notes are fully subordinated to the class A notes.  The class
    A notes benefit from a credit enhancement of 33%, which is
    provided by the subordination of the class B notes (13%) and
    the reserve fund (20%), which is funded by the issuance of
    the class C notes.

-- The reserve fund provides credit support to the class A and B
    notes.  The reserve fund's purpose is to pay interest
    shortfalls and principal payments for the class A and B notes
    during the life of the transaction.

-- Interest and principal are combined into a single priority of
    payments.  There is an interest deferral trigger for the
    class B notes.

-- If cumulative defaults represent more than 20% of the initial
    balance of the assets, the class B notes' interest payment
    would be postponed.

-- The class B and C notes' principal is fully subordinated to
    the senior class A notes.

-- Banesto is the only counterparty in this transaction, acting
    as servicer, paying agent, and treasury account provider.

-- There is no interest rate swap agreement in this transaction.

S&P analysis has indicated the following key pool
characteristics:

-- The preliminary pool comprises unsecured loans granted to
    Spanish SMEs (81.65%) and self-employed borrowers that
    represent 18.35% of the preliminary pool.  There is
    significant obligor concentration in the preliminary pool.

-- The largest borrower represents 3.06% of the issuance amount
    and the largest 10 borrowers represent 10.80% of the
    preliminary pool.

-- There are 8,158 loans and 7,499 borrowers in the preliminary
    pool.

-- S&P do not view industry concentration as significant in the
    pool.  The top sector -- retail trade, excluding motor
    vehicles and motorcycles -- represents 11.49% of the
    preliminary pool.  In terms of geographical concentration,
    58.06% of the preliminary pool is concentrated in four
    regions: Catalunya, Andalucia, Valencia, and Madrid.

-- Of the preliminary pool, about 20.48% consists of fixed-rate
    loans, while the notes pay a floating-rate of interest.

-- Because there is no swap in the transaction to hedge this
    risk, S&P has applied additional stresses in its cash flow
    analysis.

-- Not all of the loans are paying their installments on a
    monthly (72.7%) or quarterly basis (13.6%). Of the
    preliminary pool, 11.5% pays on a semiannual basis and nearly
    2.0% of the pool pays on an annual basis.

-- S&P's ratings reflect its assessment of the credit and cash
    flow characteristics of the underlying asset pool, as well as
    its analysis of the counterparty, legal, and operational
    risks of the transaction.

-- S&P's analysis indicates that, although the credit
    enhancement available to the class A notes is sufficient to
    mitigate the credit and cash flow risks to a 'AA- (sf)'
    rating level, S&P's rating is constrained at a 'A- (sf)'
    rating level because of the transaction's exposure to
    counterparty risk and the remedy action triggers defined in
    the transaction documentation.

S&P considers that the transaction documents adequately mitigate
the counterparty risk from the treasury account provider to a 'A-
' rating level, in line with its 2012 counterparty criteria.

S&P's analysis indicates that the level of credit enhancement
available to the class B notes is sufficient to mitigate the
credit and cash flow risks to the assigned rating level.  S&P has
therefore assigned its 'BBB (sf)' rating to the class B notes.

The issuer created the class C notes to fully fund the reserve
fund.  All of its payments (interest and principal) are made
after the top up of the reserve fund.  S&P has therefore assigned
a 'CC (sf)' rating to this class of notes because there will be
no ultimate payment of principal and potential interest
shortfalls could occur during the life of the transaction.

          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 Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at
http://standardandpoorsdisclosure-17g7.com/1247.pdf.

RATINGS LIST

PYMES BANESTO 3, Fondo de Titulizacion de Activos
EUR588 Million Floating-Rate Notes

Class      Rating               Amount
                              (mil. EUR)

A          A- (sf)              426.30
B          BBB (sf)              63.70
C          CC (sf)               98.00


SABADELL EMPRESAS: S&P Removes 'BB' Rating from CreditWatch
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed and removed from
CreditWatch negative its 'BB (sf)' credit rating on IM SABADELL
EMPRESAS 5, Fondo de Titulizacion de Activos' class A2 notes.

Banco de Sabadell S.A. (BB/Negative/B) is the guaranteed
investment contract (GIC) provider and the swap counterparty in
this transaction.  The transaction documents, which reflect S&P's
CreditWatch (superseded) 2010 counterparty criteria, stipulate
that remedy actions need to be taken if the long-term issuer
credit rating (ICR) on the GIC provider and the swap counterparty
are lowered below 'BB+'.  Since S&P previously lowered its long-
term ICR on Banco de Sabadell on April 30, 2012, under the
transaction documents, the counterparty is no longer eligible and
the 60-day remedy period has now expired.

"Our 2012 counterparty criteria therefore link our ratings on the
notes in this transaction to the long-term ICR on the GIC and the
swap provider, Banco de Sabadell.  Due to this link, on Nov. 5,
2012, we had lowered to 'BB (sf)' and placed on CreditWatch
negative our rating on the class A2 notes, following our Oct. 15,
2012 rating action on Banco de Sabadell," S&P said.

The rating actions follow S&P's Nov. 23, 2012 rating action on
Banco de Sabadell, the GIC and swap provider in the transaction,
and the application of its 2012 counterparty criteria.

"As we have affirmed and removed from CreditWatch negative our
long-term rating on Banco de Sabadell, we have consequently
affirmed at 'BB (sf)' and removed from CreditWatch negative our
rating on the class A2 notes following the application of our
2012 counterparty criteria," S&P added.

IM SABADELL EMPRESAS 5 is a Spanish small and midsize enterprise
(SME) transaction that securitizes a static portfolio of loans
granted to SMEs in their normal course of business.  Banco de
Sabadell is the originator in this transaction.

          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



===========
S W E D E N
===========


VIDA PAPER: Norwegian Investors Save Lessebo Mill From Closure
--------------------------------------------------------------
Pamela Mardle at PrintWeek reports that Sweden's Lessebo mill has
been saved from closure after Norwegian investors bought the
assets from its previous owner, insolvent Vida Paper.

Vida Paper, part of Vida Group, declared itself bankrupt on
December 12 and Bertil Stridh of Swedish insolvency practitioner
Amber was appointed as administrator, PrintWeek relates.  He
continued to trade the company and will do so until the new
owners take over on February 1, PrintWeek says.

The investors, Terje Haglund, Roar Paulsrud and Gunnar Hop will
continue operations at the mill under the name of Lessebo Bruk,
PrintWeek notes.

"The pulp market prices decreased, causing problems for the
previous owners.  The new owners have access to the international
pulp market and have better channels to sell pulp," PrintWeek
quotes Mr. Stridh as saying.

Vida Paper was Vida Group's only paper company and will be
dissolved over the coming year as the parent company focuses on
its core market of sawmill production, PrintWeek states.

The buyout saves 230 jobs at the mill in the southern Swedish
village of Lessebo, Smaland, PrintWeek discloses.  However, while
the management structure will remain the same, Mr. Stridh, as
cited by PrintWeek, said there could be some redundancies among
the lower tier workers.



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


AFTERSHOCK ENGINEERING: In Liquidation, M. Durkan as Liquidator
---------------------------------------------------------------
Members of Aftershock Engineering Limited have placed the company
under voluntary liquidation on Jan. 7, 2013.

The company is in the business of general construction of
buildings.

Michael Patrick Durkan of Durkan Cahill at 17 Berkeley Mews, 29
High Street, Cheltenham GL50 1DY, has been appointed as
liquidator of the company.

The Liquidator's remuneration is agreed to be paid in the sum of
GBP2,500 plus VAT.  The Liquidator is authorised to draw category
2 disbursements from funds held in the liquidation account.

The Liquidator also has power to pay any class of creditor in
full, or to make any compromise or arrangement with creditors
claiming to be creditors, or having or alleging themselves to
have any claim (present or future, certain or contingent,
ascertained or sounding only in damages) against the company, or
whereby the company may be rendered liable.


ALSTON ASSET: In Voluntary Wind-Up, Leonard Curtis as Liquidators
-----------------------------------------------------------------
Creditors of Alston Asset Management Limited passed a resolution
on Jan. 7, 2013 to voluntarily wound up the company.

M J Colman and J M Titley of Leonard Curtis have been appointed
as Joint Liquidators.  They can be reached at:

     LEONARD CURTIS
     20 Roundhouse Court, South Rings Business Park
     Bamber Bridge, Preston, PR5 6DA
     Tel No.: 01772-646180
     Email: recovery@leonardcurtis.co.uk
     Further Contact: Suzanne.treasure@leonardcurtis.co.uk

The company manufactures special-purpose machinery.


AUTOCRASH LIMITED: Begbies Traynor Appointed as Administrators
--------------------------------------------------------------
Julie Anne Palmer -- julie.palmer@begbies-traynor.com -- and
Simon Guy Campbell -- simon.campbell@begbies-traynor -- of
Begbies Traynor (Central) LLP have been appointed on Jan. 9,
2013, as joint administrators to Autocrash Limited.  Their
business address is at 65 St. Edmunds Church Street, in
Salisbury, Wiltshire SP1.

The company is the automotive motor trade business.


BERG CONSULTING: Firm in Wind-Up, Herron Fisher as Liquidators
--------------------------------------------------------------
Creditors of Berg Consulting Limited have passed a resolution on
Jan. 2, 2013, for the voluntarily wind up of the company.

Christopher Herron and Nicola Jayne Fisher, both licensed
insolvency practitioner at Herron Fisher --
info@herronfisher.co.uk -- at Satago Cottage, 360a Brighton Road,
Croydon CR2 6AL, serve as joint liquidators for the company.

The Joint Liquidators are authorised to distribute, amongst the
shareholders, in specie all or any part of the assets of the
company in accordance with the company's articles of association.

Creditors of the company are required, on or before 26 February
2013, to send in their full names, their addresses and
descriptions, full particulars of their debts or claims and the
names and addresses of their solicitors (if any) to the Joint
Liquidators, and, if so required by notice in writing from the
said joint liquidators, are, personally or by their solicitors,
to come in and prove their debts or claims at such time and place
as shall be specified in such notice, or in default thereof they
will be excluded from the benefit of any distribution.

The company is in a members' voluntary winding up and it is
anticipated that all debts will be paid in full.


BIG PICTURES: Paparazzi Firm Goes Into Liquidation
--------------------------------------------------
Josh Halliday at guardian.co.uk reports that Paparazzi firm Big
Pictures has entered voluntary liquidation, drawing to a close 21
years of celebrity photographs and showbiz gossip from flamboyant
founder Darryn Lyons.

The British picture agency filed for creditors' voluntary
liquidation at the high court in London earlier this month after
running into financial difficulty, guardian.co.uk relates.

Big Pictures owes more than GBP82,000 to photographers and other
picture agencies, guardian.co.uk discloses citing Companies House
documents filed by administrators RSM Tenon.

Mr. Lyons, who formed the company in 1992, has reportedly
returned to Australia where he is considering running for mayor
of his home town, Geelong, according to guardian.co.uk.

Over two decades, his paparazzi firm plugged the demand for
pictures of celebrities at red-carpet events or falling out of
nightclubs, the report relays.

Big Pictures is a British paparazzi agency founded by Darryn
Lyons.

As reported in Troubled Company Reporter-Europe on Oct. 9, 2012,
Digital Spy said Big Pictures has gone into administration. The
Guardian reported that accountancy firm TSM Tenon was appointed
to sell the company's assets by the high court on September 27
and all staff have been made redundant, according to Digital Spy.


BIZTECH SERVICES: In Liquidation; Claims Due on Feb. 20
-------------------------------------------------------
Lindsay Larkins, chairman of Biztech Services Limited, related
that winding up proceedings have been commenced on the company on
January 9, 2013.

Paul Appleton -- paul@drpartners.com -- of David Rubin & Partners
LLP, at 26-28 Bedford Row, London, WC1R 4HE, was appointed
liquidator on Jan. 9 by a resolution of the Company.

Creditors of the company are required on or before February 20,
2013, to send in their names and addresses with particulars of
their Debts or Claims, to the Liquidator and if so required by
notice in writing from the said Liquidator, personally or by
their solicitors, to come in and prove their said debts or claims
at such time and place as shall be specified in such notice, or
in default thereof they will be excluded from the benefit of any
distribution made before such debts are proved.


BIOTICA TECHNOLOGY: McTear Williams Named as Administrators
-----------------------------------------------------------
Chris McKay and Andrew McTear of McTear Williams & Wood have been
named as joint administrators to Biotica Technology Limited on
Jan. 8, 2013.

The administrators can be reached at:

          Chris McKay
          Andrew McTear
          McTear Williams & Wood
          90 St Faiths Lane
          Norwich, NR1 1NE
          Tel No.: 01603 877540
          Email: info@mw-w.com

The company is the business of drug discovery bio-tech
technology.


BRIDGE BIORESEARCH: Wind-Up Petition to Be Heard on Jan. 24
-----------------------------------------------------------
Petitions to wind-up Bridge Bioresearch Testing Services Limited
and Bridge Bioresearch International Limited were presented on
December 6, 2012 by BBR Danmark ApS.  The petitions will be heard
at The Bristol District Registry, 2 Redcliff Street, Bristol BS1
6GR on January 24, 2013.

Any person intending to appear on the hearing of the Petitions
must give notice of intention to do so to the Petitioner or its
Solicitors by 4:00 p.m. on January 23.

The Petitioner's Solicitors are DAC Beachcroft LLP of Portwall
Place, Portwall Lane, Bristol BS99 7UD


CABLE & WIRELESS: S&P Affirms 'BB/B' Corporate Credit Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on U.K.-based telecommunications services provider Cable
& Wireless Communications PLC (CWC) to negative from stable.  At
the same time, S&P affirmed its 'BB' long-term and 'B' short-term
corporate credit ratings on CWC.

The outlook revision reflects CWC's agreement to divest its
entire Macau division for a total consideration of US$750 million
within 6-9 months.  The divestment follows that of CWC's Monaco &
Islands (M&I) business in early December 2012.

The outlook revision reflects S&P's view that CWC's business risk
profile will weaken over the short to medium term following the
sales of the M&I and Macau businesses.  The sales have a negative
bearing on S&P's assessment of CWC's competitive position and
overall country risk.  CWC's remaining assets in the Caribbean
and Pan-America regions have higher country risk and some of them
have weaker domestic competitive positions than the M&I and Macau
businesses.  S&P understands that CWC plans to use some of the
disposal proceeds to pay down debt, and some to reinvest in new
businesses or increase its stakes in existing businesses.

"Although we continue to assess CWC's business risk profile as
"fair," we may revise this assessment downward to "weak"
depending on the nature of CWC's future investments.  The "fair"
business risk profile reflects our opinion that the group will
continue to face a tough regulatory and competitive environment
in the majority of its markets.  Among CWC's main markets,
country risks are highest in Jamaica, in our view.  These
negative factors are offset by the group's leading market
positions in most of the other markets in which it operates,
including Panama; solid profitability; and good geographic,
product, and customer diversification," S&P said.

S&P continues to assess CWC's financial risk profile as
"significant."  This notably factors in S&P's understanding that
until CWC reinvests the disposal proceeds, it will face higher
gross leverage due to the loss of EBITDA from the divested
businesses, and to CWC's interest income on its cash balances
being lower than the cost of its debt.

There is a risk of a one-notch downgrade within the next 12
months if S&P assess CWC's business risk profile as "weak" or its
financial risk profile as "aggressive" after its reinvestments,
or if CWC revises its plans for the use of proceeds plans to
favor shareholder returns.

At this stage, S&P considers proportionate adjusted debt to
EBITDA of 3.0x-3.5x and funds from operations to debt in the
high-20s as the maximum and minimum thresholds for the rating,
respectively, alongside a "fair" business risk profile.

S&P could revise the outlook to stable if it considers that CWC's
reinvestments are likely to support S&P's assessment of its
business risk profile as "fair," particularly through increased
business, product, and geographical diversity and sustained
competitive positions.  This also depends on CWC's financial risk
profile remaining comfortably within the "significant" category.


CBRE BRITANNICA: Grant Thornton UK Named as Administrators
----------------------------------------------------------
Malcolm Shierson and Daniel Smith of Grant Thornton UK LLP have
been appointed as joint administrators of CBRE Britannica St
Helens LLP on Jan. 7, 2012.

The company is into real estate investment.

The administrators can be reached at:

          GRANT THORNTON UK LLP
          30 Finsbury Square
          London, EC2P 2YU
          Further details contact: Paula Martin
          Email: paula.martin@uk.gt.com


DRACO PLC: Moody's Cuts Rating on GBP12.1MM Cl. E Notes to 'B1'
---------------------------------------------------------------
Moody's Investors Service has taken rating action on the
following classes of Notes issued by Draco (Eclipse 2005-4) plc
(amounts reflect initial outstanding):

    GBP210.9M Class A Notes, Downgraded to A3 (sf); previously on
    Aug 1, 2011 Confirmed at Aa3 (sf)

    GBP17.1M Class B Notes, Downgraded to Ba1 (sf); previously on
    Apr 15, 2011 Downgraded to Baa1 (sf)

    GBP15.7M Class C Notes, Downgraded to Ba2 (sf); previously on
    Apr 15, 2011 Downgraded to Baa3 (sf)

    GBP22.8M Class D Notes, Downgraded to Ba3 (sf); previously on
    Apr 15, 2011 Downgraded to Ba1 (sf)

    GBP12.1M Class E Notes, Downgraded to B1 (sf); previously on
    Apr 15, 2011 Downgraded to Ba2 (sf)

Moody's does not rate the Class F Notes issued by Draco (Eclipse
2005-4) plc.

RATINGS RATIONALE

The downgrade action reflects Moody's increased loss expectation
for the two-loan pool driven by a higher loss expectation for the
smaller loan combined with concerns about a modified pro-rata
allocation of principal proceeds of the better quality larger
loan to the Notes. Moody's concern is caused by the weak
sequential payment triggers in the transaction, which exacerbates
the increased credit risk for all classes of Notes.

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

Based on Moody's revised assessment of these parameters, the loss
expectation for the pool has substantially increased, albeit
being still small at <5%. The increased loss expectation is a
result of the significant value deterioration for the property
securing the Herbert House Loan (6% of the current pool balance)
as evidenced by a recent valuation. With a current underwriter's
(UW) loan-to-value (LTV) ratio of 166% (versus approximately 80%
Moody's LTV at last review), Moody's now assumes that the loan
will default on its maturity date in January 2014. Moody's
expects a principal loss of 50-75% on the Herbert House Loan.
Currently, the Notes benefit from the stable performance of the
larger loan, the Flintstone Portfolio Loan (96% of the current
pool balance) for which Moody's continues to expect a very low
amount of losses.

The expected loss for the respective class of Notes is dependent
on the timing of the work-out of the Herbert House Loan and the
allocation of potential losses to the Notes. This is the only
sequential pay trigger that could realistically be breached. The
senior and mezzanine Notes are vulnerable to the modified pro-
rata allocation of principal proceeds from the prepayment or
repayment of the Flintstone Portfolio Loan on its scheduled
maturity date in October 2015 and the possibility that the
Herbert House Loan will remain the only loan in the pool. Before
the breach of the sequential pay trigger the principal proceeds
from the Flintstone Portfolio Loan will be allocated 50%
sequential and 50% pro-rata. In such a scenario when the
Flintstone Portfolio Loan repays and the Herbert House Loan
remains in the transaction, all classes of Notes would remain
outstanding and the expected loss for the respective classes of
Notes would be based on the Herbert House Loan.

While Moody's base case assumption is that the Herbert House Loan
will default on its maturity date in January 2014 and be worked
out with losses breaching the sequential pay trigger prior to the
repayment of the Flintstone Portfolio Loan, Moody's adjusted the
ratings of all classes of Notes to reflect the risk that the
better quality Flintstone Portfolio Loan could repay first with
principal proceeds allocated on a modified pro-rata basis to the
Notes, exposing all classes of Notes to the credit quality of the
Herbert House Loan.

Moody's notes that the rating levels to which the Notes are
downgraded on Jan. 21 do not fully incorporate a scenario in
which the Herbert House Loan remains as the only loan in the pool
with the principal proceeds of the Flintstone Portfolio Loan
allocated modified pro-rata to the Notes. Should such a scenario
materialize, all classes of Notes could be further downgraded; in
multiple notches (four notches or more), most severely in respect
of the Class B and below.

In general, Moody's analysis reflects a forward-looking view of
the likely range of commercial real estate collateral performance
over the medium term. From time to time, Moody's may, if
warranted, change these expectations. Performance that falls
outside an acceptable range of the key parameters such as
property value or loan refinancing probability for instance, may
indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. There may
be mitigating or offsetting factors to an improvement or decline
in collateral performance, such as increased subordination levels
due to amortization and loan re- prepayments or a decline in
subordination due to realised 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, 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 for the
world's largest economies is for only a gradual strengthening in
growth over the coming two years. Fiscal consolidation and
volatility in financial markets will continue to weigh on
business and consumer confidence, while heightened uncertainty
hampers spending, hiring and investment decisions. Moody's
expects no growth in the Euro area in 2013.

MOODY'S PORTFOLIO ANALYSIS

Draco (Eclipse 2005-4) plc closed in December 2005 and represents
the securitization of initially five mortgage loans originated by
Barclays Bank PLC and secured by first-ranking legal mortgages
over initially 36 commercial properties located across the UK.
The properties were predominantly offices (92%) and located in
Greater London (81%). The remaining collateral pool largely
consisted of residential/retail buildings located in Bristol.
Since closing of the transaction, three loans representing 46% of
the initial pool balance have repaid. As of the October 2012 Note
payment date, two loans, the Flintstone Portfolio Loan (94% of
the current pool balance) and the Herbert House Loan (6% of the
current pool balance) are outstanding.

The GBP144 million Flintstone Portfolio Loan is secured by five
properties located in London (94% by UW market value) and Windsor
(6%). The largely office use properties are let to approximately
44 tenants with the three largest tenants contributing
approximately 50% of the total rental income. The portfolio
weighted average remaining lease term to break is approximately 9
years, driven primarily by the long leases of the UK House
property on London's Oxford Street (83% of the portfolio by UW
market value). Upon the instruction of the Servicer, the
portfolio has been re-valued, showing a value of GBP239 million
in March 2012. The value increase of the London properties (16-
36%) have more than offset the value declines (40%-50%) of the
Windsor properties and has resulted in an overall 10% increase of
the portfolio value from September 2005. In its assessment of the
portfolio value, Moody's stressed the lease renewal assumptions
and refurbishment costs compared with the valuer's assumptions
and applied an overall haircut of 17% to derive at a value of
approximately GBP199 million. Based on this value, Moody's
estimates the loan's refinancing LTV as 72% in October 2015. In
Moody's opinion, there is a low/medium likelihood of default (5-
10%) of the loan and Moody's expects a very low amount of loss on
the loan.

The GBP8.5 million Herbert House Loan (6% of the current pool
balance) is secured by an office property in Birmingham. The
property is let to a single tenant (rated Ba2 by Moody's) whose
lease expires in July 2025 with a break option in July 2015. A
valuation conducted in July 2012 estimates the market value of
the property as GBP5.1 million which is significantly lower than
the GBP11.3 million September 2005 value at loan origination. The
vacant possession value (VPV) according to the latest valuation
is GBP3.2 million. In deriving the market value, the valuer has
assumed that the tenant will break its lease in July 2015, and
adjusted the market value for costs of substantial refurbishment
works necessary, in their opinion, to upgrade the office space to
Grade A specifications and lease up to multiple tenants over
time. Based on the high LTV of the loan, Moody's now assumes that
the loan will not repay at maturity in January 2014. Given the
short remaining lease term from the loan's maturity date until
the lease break option in July 2015, Moody's put more weight on
the VPV of the valuer in its recovery analysis for the loan.
Moody's expects that the principal loss on the loan will be in
the range of 50% to 75%.

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 April 15, 2011. The last Performance Overview for
this transaction was published on December 17, 2012.

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

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


GEN. MEDICAL EQUIPMENT: In Liquidation, J. Lord Named Liquidator
----------------------------------------------------------------
General Medical Equipment Company Limited went into insolvent
liquidation on January 8, 2013.

Members and creditors of the company appointed Jonathan Guy Lord
of Bridgestones -- mail@bridgestones.co.uk -- as liquidator.

The company is in the business of dental and facial implants.

Jill Lee and John William Lee, the company's directors, will be
acting in ways specified in section 216(3) of the Insolvency Act
1986 in connection with, or for the purposes of, the carrying on
of the whole or substantially the whole of the business of the
insolvent company under the following name: Jewel Management
Limited trading as General Medical.


GODFREY DIY: Placed Into Liquidation
------------------------------------
BBC News reports that Godfrey DIY Supermarkets Limited has been
put into liquidation.

Godfrey DIY Supermarkets Limited, which is based in Norwich and
also has stores in Diss and Stowmarket, said sales had been on
the decline since 2008.

BBC News relates that managing director Barry Godfrey said it was
a "sad day".

"We are not the only retailer to have encountered difficulties
since Christmas and probably won't be the last," BBC quotes Mr.
Godfrey as saying.

Mr. Godfrey thanked customers and staff for their "loyalty and
commitment" over the past 30 years.

According to the report, liquidator McTear Williams and Wood,
which has been instructed to place the company in liquidation,
said Godfrey DIY would continue to trade as normal until Jan. 30,
2013.

It will then hope to sell the Diss shop, where 14 people work,
and the store in Stowmarket, which employs 11 people, as going
concerns, the report adds.

Godfrey DIY Supermarkets Limited is a DIY business which employs
50 people in Norfolk and Suffolk.


H2O SOLUTIONS: In Voluntary Wind-Up, Lucas Johnson as Liquidator
----------------------------------------------------------------
Members of H2O Solutions South West Limited passed a resolution
on Jan. 9, 2013, to voluntarily wind up the company.

The members have ascertained that the company cannot by reason of
its liabilities continue its business.

Kevin Lucas of Lucas Johnson has been appointed as liquidator of
the company.  He can be reached at:

         Carlton Place
         22 Greenwood Street
         Altrincham, Cheshire, WA14 1RZ
         Tel No: 01619 298666
         Email: Kevin@lucasjohnson.co.uk


HMV GROUP: To Accept Up to GBP7-Mil. Worth of Gift Vouchers
-----------------------------------------------------------
Graham Ruddick at The Telegraph reports that up to GBP7 million
worth of gift vouchers will be accepted by HMV from Tuesday after
the administrators to the collapsed entertainment retailer
performed a U-turn.

Deloitte initially said gift vouchers would be rejected at HMV
after they were appointed administrators last week, the Telegraph
relates.

The decision provoked a public backlash and vouchers will now be
honored after the administrators completed a financial review of
the retailer, the Telegraph notes.

According to the Telegraph, Nick Edwards, joint administrator,
also confirmed that funds raised by HMV from charity singles will
be paid in full.

A Liverpool MP warned last week that GBP150,000 raised by HMV
from the sale of the Hillsborough Justice Collective single,
which was number one in the Christmas charts, had yet to be paid
to charity funds, the Telegraph recounts.

Mr. Edwards, as cited by the Telegraph, said that Deloitte had
been "urgently assessing" HMV's financial position since being
appointed administrators.

He added: "The ability of administrators to honor gift vouchers
will depend on the specific circumstances of each case.

"We recognize that both of these matters have caused concern for
individuals and organizations affected and are pleased to have
reached a positive outcome.

"We will continue to assess the longer term options for the
business while continuing to trade.  I am hopeful this process
will result in the business continuing as a going concern."

The administrators estimate that there is between GBP6 million
and GBP7 million of HMV gift vouchers outstanding, the Telegraph
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.


JESSOP GROUP: PwC Named as Joint Administrators
-----------------------------------------------
Edward Williams and Robert Jonathan Hunt of
PricewaterhouseCoopers were appointed on Jan. 9, 2013, as joint
dministrators to The Jessop Group Limited, formerly Jessop of
Leicester Limited.

The company is engaged in the business of retail sale of new
goods in specialised stores.  Its principal trading address is
Jessop House, Scudamore Road, Leicester LE3 1TZ.


LOGICOR LTD: G. Craig Named as Administrator
--------------------------------------------
Gordon Craig of Refresh Recovery Limited has been appointed as
administrator of Logicor Ltd. on Dec. 21, 2012.  He can reached
at:

         West Lancashire Investment Centre
         Maple View, White Moss Business Park
         Skelmersdale, Lancashire, WN8 9TG
         Further contact email: Email: ip@refreshbg.co.uk
         Tel: 01695 711200

On Jan. 4, 2013, the Administrator related that an initial
meeting of creditors of the company will be held by
correspondence.  In order for votes to be counted, Creditors must
supply to the Administrator's office a completed Form 2.25B with
written evidence of their claim by 12 noon on January 31, 2013.


MID-STAFFORDSHIRE NHS: Needs to Save GBP53MM to Avoid Insolvency
----------------------------------------------------------------
BBC News reports that a health watchdog said Mid-Staffordshire
NHS Foundation Trust needs to save GBP53 million over the next
five years to stave off insolvency.

The report by Monitor said that without continuing financial
support the Mid-Staffordshire NHS Foundation Trust would not be
able to pay its debts, BBC News relays.

According to BBC News, the health watchdog said experts were
examining whether services should be moved to other hospitals or
health providers.

The Department of Health gave the trust which runs Stafford and
Cannock hospitals, more than GBP20 million last year.

The report said the trust was also struggling to provide high-
quality clinical services, BBC News relates.

"If the Department of Health removed its financial subsidy it is
clear that clinical services would suffer," BBC News quotes Prof
Hugo Mascie-Taylor, from Monitor, as saying.

According to BBC News, the Monitor said that for the trust to
break even, it needed to save GBP53 million over the next five
years -- about 7% of its yearly budget - and also get a
GBP73 million subsidy from the government.

It said without that amount, the trust would be unable to pay its
debts and would be "deemed insolvent," BBC News adds.

Once it had received the report from the panel about the future
of services it would decide what action to take and whether to
put the trust into special administration, the watchdog, as cited
by BBC News, said.


OMNITEC BUSINESS: In Wind-Up, R. Peck Named as Receiver
-------------------------------------------------------
The High Court of Justice of the Manchester District Registry
entered a winding-up order on January 7, 2013, for Omnitec
Business Solutions.

The company's official receiver is R Peck at 69 Middle Street,
BRIGHTON, BN1 1BE with Tel. No.: 01273 861300, and email address:
Brighton.OR@insolvency.gsi.gov.uk

The petition for wind-up was presented on November 13, 2012 by
Neopost Limited, claiming to be a creditor of the company.

The Petitioner's Solicitor is Pannone LLP, at 123 Deansgate,
Manchester, M3 2BU.


PELAW PACK: Wind-Up Petition to be Heard on February 12
-------------------------------------------------------
A petition to wind up Pelaw Pack & Pkg Ltd. of 38 Cross Lane,
Birkenshaw, Bradford, England BD11 2BY was presented on Dec. 14,
2012.

The Petition was presented by Daley Express Ltd of Bells Yard,
claiming to be a creditor of the company and will be heard In the
High Court of Justice, Leeds District Registry at Leeds Combined
Court Centre, at 1 Oxford Row, Leeds, West Yorkshire LS1 3BG,
England on February 12, 2013 at 10:30 am.

Any person intending to appear on the hearing on the hearing of
the Petition must give notice of intention to do so to the
Petitioner or its Solicitor by Feb. 11.

The Petitioner's Solicitors are G.M. Wilson Solicitors, holding
office at 1 Crown Court, Wakefield WF1 2SU.


RENTEQ TRAFFIC: RSM Tenon Named as Adminstrators
------------------------------------------------
Frank Wessely and Peter James Hughes-Holland of RSM Tenon
Recovery have been appointed as joint administrators of Renteq
Traffic Management Limited on Dec. 28, 2012.

The administrators can be reached at:

         Frank Wessely
         Peter James Hughes-Holland
         RSM TENON RECOVERY
         81 Station Road, Marlow, Bucks, SL7 1NS
         Tel No.: 01628 478100
         Email: frank.wessely@rsmtenon.com
         Alternative contact: Clive Jackson
         Email: clive.jackson@rsmtenon.com

The company is the business of renting of other machinery and
equipment.  The principal trading address is Unit 8 Byfleet
Industrial Estate, Olds Approach, Watford, WD18 9RH.


RUBICON DESIGN: Placed in Wind-Up Proceedings
---------------------------------------------
The High Court of Justice of the Birmingham District Registry, on
Dec. 19, 2012, ordered for the wind-up of Rubicon Design & Build
Limited.  The company's business address is at 165a Romsey Road,
in Winchester, Hampshire, SO22 5PQ.

The company's official receiver is:

          T Ryan
          Spring Place, 105 Commercial Road,
          SOUTHAMPTON, SO15 1EG
          Tel. No.: (023)8083 1600
          Email: Southampton.OR@insolvency.gsi.gov.uk

Rexel UK Limited, who claims to be a creditor of the company,
filed the winding-up petition on November 8, 2012.

The petitioner's solicitor is:

          Coltman Warner Cranston LLP
          Unit 3 Coventry Innovation Village
          Coventry University Technology Park
          Cheetah Road, Coventry CV1 2TL
          Tel No.: 02476 627262
          Email: gbates@coltmanco.com


SCOTIA CONSTRUCTION: Hasan Steps Down as FMB Head After Collapse
----------------------------------------------------------------
Grant Prior at Construction Enquirer reports that Najem Al Hasan
has resigned as the Scottish president of the Federation of
Master Builders after his company Scotia Construction went into
liquidation.

According to Construction Enquirer, The Sunday Mail revealed that
Livingston-based Scotia Construction was put into liquidation at
the town's sheriff court by suppliers Jewson Builders over an
unpaid bill.

The move followed a string of complaints about workmanship by the
contractor, Construction Enquirer discloses.

Construction Enquirer relates that Mr. Hasan told the paper:
"This is what happens when customers do not pay their bills. . .
.  It was no longer prudent to continue the business."


VIZONE LTD: In Wind-Up Proceedings, RSM Tenon Named Liquidators
---------------------------------------------------------------
Creditors of the management consultrancy firm Vizone Limited of
Stroud, Gloucestershire, moved for the voluntary winding up of
the company on Jan. 9, 2013.

Trevor John Binyon and Steven John Parkers of RSM Tenon
Restrucruting were appointed as Joint Liquidators.  They can be
reached at:

         RSM TENON RESTRUCTURING
         11th Floor
         66 Chiltern Street, London, W1U 4JT
         Further details contact: Excella Simmons
         Email: excella.simmons@rsmtenon.com
         Tel No.: 020 3075 2550

Creditors of the company are required, on or before the Feb. 8,
2013, to send their names and addresses and particulars of their
debts or claims and the names and addresses of their solicitors
(if any) to the Liquidators, and, if so required by notice in
writing from the Liquidators, by their solicitors or personally,
to come in and prove their debts or claims at such time and place
as shall be specified in any such notice, or in default thereof
they will be excluded from the benefit of any distribution made
before such debts are proved.


WATERMILL HOTEL: In Administration; Begbies Traynor Seeks Buyer
---------------------------------------------------------------
BBC News reports that Watermill Hotel has been forced into
administration after accumulating unsustainable debts.

According to BBC, administrators at Begbies Traynor have
appointed Colliers International as selling agents.

The 49-bedroom venue will continue to trade while administrators
seek a buyer, BBC notes.

"We are actively marketing the hotel as a going concern and we
are optimistic that a buyer can be found for this as an
investment either by an individual or a larger chain of hotels,"
BBC quotes joint administrator Paul Dounis as saying.  "The venue
has been run by the same owners for the past 11 or so years, but
unfortunately the economic downturn made it impossible for
revenues to cover the cost of servicing the debt of the company
and meet its financial obligations."

The 17th century Watermill Hotel, which employs 34 staff, was
trading as a three-star hotel, restaurant, bar, conference and
wedding venue in Paisley.


WINDERMERE VIII: S&P Lowers Rating on Class D Notes to 'CCC-'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Windermere VIII CMBS PLC's class B, C, and D notes.  At the same
time, S&P has affirmed its ratings on the class A2, A3, and E
notes and has removed from CreditWatch negative its rating on the
class C notes.

On Dec. 6, 2012, S&P placed its rating on the class C notes on
CreditWatch negative following an update to its criteria for
rating European commercial mortgage-backed securities (CMBS)
transactions.

S&P's analysis reflects its November 2012 European CMBS criteria.

Three loans back this transaction, all of which are in special
servicing.

The Government Income Portfolio Mortgage Loan matured in October
2012 and is in special servicing following nonpayment of the
loan.  A portfolio of 38 U.K. office properties let to government
departments secures the loan.

The Amadeus Portfolio Mortgage Loan matured in April 2009 and is
in special servicing following nonpayment of the loan.  Debt
service payments are currently not being paid.  Two office
properties located in Nottingham and Middlesbrough secure the
loan.  The current vacancy rate is 77% and the current reported
securitized loan-to-value (LTV) ratio is 332%.

The Wood Green Mortgage Loan matures in January 2013 and was
transferred to special servicing in June 2011 following a breach
of the LTV ratio covenant.  The current reported LTV ratio is
92%, compared with a covenant of 82.5%.  One office property
located in Wood Green, London secures the loan.

S&P's analysis indicates that the class A2 and A3 notes are able
to withstand S&P's estimate of potential losses under its 'AA+'
rating scenario.  S&P has therefore affirmed its 'AA+ (sf)'
ratings on these classes of notes.

The amount of available credit enhancement for the class B and C
notes is insufficient to cover its principal losses expectations
under their respective current rating level scenarios.
Therefore, S&P has lowered its ratings on the class B and C
notes.  At the same time, S&P has removed its rating on the class
C notes from CreditWatch negative.

Based on S&P' expectations of potential principal losses on the
three loans backing the transaction, S&P believes that there is a
one-in-two chance that the two subordinate classes of notes will
experience principal losses.  Consequently, S&P has lowered to
'CCC- (sf)' from 'B- (sf)' its rating on the class D notes.  S&P
currently rate the class E notes at 'D (sf)' following principal
losses.  S&P has affirmed its 'D (sf)' rating on the class E
notes.

Windermere VIII CMBS is a U.K. true sale CMBS transaction.

          STANDARD & POOR'S 17-G7 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
            To                    From

Windermere VIII CMBS PLC
GBP1.038 Billion Commercial Mortgage-Backed Floating Rate Notes

Ratings Lowered

B           A- (sf)               A+ (sf)
D           CCC- (sf)             B- (sf)

Rating Lowered and Removed From CreditWatch Negative

C           B (sf)                BB+ (sf)/Watch Neg

Ratings Affirmed

A2          AA+ (sf)
A3          AA+ (sf)
E           D (sf)


* UK: More Companies to Face Default This Year, Survey Shows
------------------------------------------------------------
Vanessa Kortekaas at The Financial Times reports that new
research reveals more companies are expected to default on their
debt this year, with UK retailers deemed the most vulnerable.

A survey of the restructuring industry -- published just days
after HMV and Blockbuster became the latest high-street chains to
collapse -- indicates that the retail sector will be no more
resilient in coming months, the FT notes.

"Two thousand and thirteen will be marked by muted consumer
confidence and tough trading conditions for companies without a
compelling proposition," the FT quotes Shaun O'Callaghan --
shaun.m.ocallaghan@uk.gt.com -- UK head of restructuring at Grant
Thornton, the advisory firm that conducted the research, as
saying.

Nearly half of the 230 restructuring advisers and bankers
surveyed predicted that defaults would increase this year, with
84 per cent of respondents identifying retail as particularly at
risk, followed by the hotels, pubs and leisure sector, the FT
discloses.

Mr. O'Callaghan warned that companies needing to refinance may
have only one last chance, before debt negotiations become even
more difficult, the FT relates.  "Two thousand and thirteen may
offer a final breathing space," the FT quotes Mr. O'Callaghan as
saying.

Some 60% of respondents said that they expected banks'
forbearance towards borrowers to stay at similar levels to last
year, the FT notes.

Grant Thornton's research, which was carried out between December
and January, found that cost-cutting was the main restructuring
tool being used by struggling companies, the FT discloses.


* UK: 2012 Channel Insolvency Second-Highest in Nine Years
----------------------------------------------------------
Hannah Breeze at ChannelWeb.co.uk reports that last year saw the
second-highest number of channel insolvencies in nine years,
according to new figures from Graydon.

According to the report, the credit reference firm warned that
continuing tough market conditions could claim even more victims
this year, especially in Q1 as ailing firms finally let go after
hanging on over Christmas.

In 2012, some 285 channel businesses hit the wall, a figure only
recently topped in 2011, when 356 firms went under, says
ChannelWeb.co.uk.

Despite this, the report notes, the fourth quarter of 2012 saw
the fewest firms fail since 2008's Q1, when only 57 went to the
wall.

ChannelWeb.co.uk relates that Alan Norton, head of intelligence
at Graydon, said final-quarter figures can be boosted by
Christmas and are often followed by poor first quarters.

"The traditional Christmas boost means the [number of
insolvencies] reaches a higher figure in Q1; firms can make it
through Christmas trading and run out of funds in January or
February, and we expect the [quarterly figure] to increase in
2013," the report quotes Mr. Norton as saying.

Mr. Norton pointed to banks' reluctance to finance overdrafts as
part of the problem, ChannelWeb.co.uk adds.


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


* Fitch Says Ageing Costs Will Impede Long-Term Fiscal Recovery
---------------------------------------------------------------
Fitch Ratings says while a successful resolution of the current
fiscal crisis remains the most important driver for many
advanced-economy ratings, without further reform to address the
impact of long-term ageing these economies face a second, longer-
term fiscal shock.

Without the implementation of mitigating reforms the median
country analyzed in our new report today is projected to see its
budget worsen by 0.6% of GDP by 2020 and 4.9% of GDP by 2050.
Consequently, many of these countries would experience escalating
government debt-to-GDP ratios, with the average EU27 debt-to-GDP
projected by Fitch to rise by 6.9% by 2020 and 119.4% by 2050.
Without reforms to boost labor productivity and/or participation
rates in many other advanced economies, population ageing will
cause potential GDP growth to decline over the long-term,
exacerbating the fiscal challenge.

Few countries face an imminent problem. However, without major
pension reforms Fitch would expect to take negative rating
actions over the next decade on the countries facing the most
pressing ageing pressures.

For illustration, under a no policy response scenario, Fitch's
Sovereign Rating Model (SRM) -predicts a 1.5-notch downgrade by
2030 for countries with the worst ageing problem, and a five-
notch downgrade for them by 2050. According to the model, Japan,
Ireland and Cyprus face the largest jump in ageing costs over the
next decade, while Luxembourg, Belgium, Malta and Slovenia face
the most severe impact over the very long term. In particular,
the setback to pension reform was a key contributory factor to
the downgrade of Slovenia's ratings in 2011.

Despite the fiscal challenge currently facing some periphery
eurozone countries, their recent experience also shows the power
of reforms in transforming long-term projections. Recent reforms
in Portugal, Italy and Greece have effectively neutralised the
long-term impact of ageing on public finances in those countries.

The report focuses mainly on EU and OECD countries which face the
most severe ageing populations and related fiscal costs. It also
presents some data and preliminary analysis of the challenge
facing emerging markets, for which data is generally less readily
available.


                            *********

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
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Information contained herein is obtained from sources believed to
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members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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202-241-8200.


                 * * * End of Transmission * * *