TCREUR_Public/130215.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, February 15, 2013, Vol. 14, No. 33

                            Headlines



F I N L A N D

TALVIVAARA MINING: Mulls Rights Offer to Stave Off Default


G E R M A N Y

HESS: Files for Insolvency Amid Ongoing Fraud Investigation
KUKA AG: S&P Raises Corp. Credit Rating to 'B+'; Outlook Positive


G R E E C E

DRYSHIPS INC: Announces Upsizing & Pricing of Ocean Rig Shares


I R E L A N D

ANGLO IRISH: ISDA Declares Bankruptcy Credit Event
PHOSAGRO BOND: Fitch Assigns 'BB+' Final Senior Unsecured Rating
TALISMAN-3 FINANCE: S&P Cuts Ratings on Three Note Classes to 'D'


I T A L Y

TELECOM ITALIA: Fitch Rates Subordinated Securities 'BB+(EXP)'


L U X E M B O U R G

DH SERVICES: Moody's Assigns 'Caa1' Rating to $265MM Senior Notes


N E T H E R L A N D S

FAXTOR ABS 2003-1: Moody's Cuts Ratings on 2 Note Classes to Caa3
LAURELIN II: Fitch Affirms 'BB' Rating on Class E Notes
PANTHER CDO V: S&P Affirms 'CCC-' Rating on Class E Notes
SNS REAAL: Nationalization Triggers Restructuring Credit Event


N O R W A Y

* NORWAY: Moody's Changes Banking System Outlook to Stable


P O L A N D

CENTRAL EUROPEAN: M. Kaufman Nominates Self, 3 Others to Board


R U S S I A

BYSTROBANK JSC: Fitch Assigns 'B-' Rating to Unsecured RUB Bonds


S P A I N

ABS SANTANDER: S&P Retains 'D' Rating on Class D Notes
ABS SANTANDER: S&P Retains 'D' Ratings on Two Note Classes


S W E D E N

NORTHLAND RESOURCES: Moody's Cuts Corp. Family Rating to 'Caa3'


S W I T Z E R L A N D

* SWITZERLAND: Fitch Retains Stable Outlook on Insurance Sector


T U R K E Y

MANGO GIDA: Obtains Bankruptcy Protection


U N I T E D   K I N G D O M

2E2 ISLE OF MAN: Appoints PwC as Liquidators
ARQIVA BROADCAST: Moody's Rates New High-Yield Bonds '(P)B3'
ARQIVA BROADCAST: Fitch Assigns 'B-' Rating to GBP600-Mil. Notes
BEZIER: Puts Print Division in Administration, Jobs at Risk
CBRIDGE LIMITED: Director Gets Five Year Ban For Tax-Dodging

HEART OF MIDLOTHIAN: In Temporary Administration
KERLING: S&P Cuts Corp. Credit Rating to 'B-'; Outlook Negative
PARFITTS BAKERY: Goes Into Liquidation
PROMINENT CMBS: Fitch Cuts Ratings on Three Note Classes to 'D'
REPUBLIC: In Administration; 2,500 Jobs at Risk


U Z B E K I S T A N

CREDIT-STANDARD BANK: Moody's Lowers Deposit Ratings to 'Caa1'


X X X X X X X X

* Moody's Sees Continuing Weak Performance of European CMBS
* BOOK REVIEW: Legal Aspects of Health Care Reimbursement


                            *********


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F I N L A N D
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TALVIVAARA MINING: Mulls Rights Offer to Stave Off Default
----------------------------------------------------------
Kati Pohjanpalo at Bloomberg News reports that Talvivaara Mining
Co. Ltd. said it's "quite confident" shareholders will approve a
rights offer to stave off default and bankruptcy at the company.

According to Bloomberg, Talvivaara Chief Financial Officer Saila
Miettinen-Laehde said the company plans to raise EUR260 million
(US$347 million) through the fully underwritten sale of rights.

The company is raising funds to repay a EUR76.9 million
convertible bond that will mature on May 20 and to deal with
excess water at its Sotkamo mine operation in northern Finland,
Bloomberg discloses.  It also has a revolving credit facility of
EUR100 million, Bloomberg notes.

"It was a better de-risking solution to go for equity and also
the bank debt that we had previously signed," Bloomberg quotes
Ms. Miettinen-Laehde as saying on Thursday in an interview by
telephone.  "We are quite confident that we should get it
through.  De-risking the balance sheet, getting this kind of
financing and liquidity in place, creates breathing-room to
improve the operations."

Bloomberg relates that the company said in a statement
shareholders will vote on the plans on March 8.

Talvivaara's main owners, Chief Executive Officer Pekka Perae,
the Finnish state holding company Solidium Oy and Varma Mutual
Pension Insurance Co. with a combined 38.3% stake, have committed
to participating in the offer, Bloomberg states.

"Without securing additional funds through the proposed rights
issue, Talvivaara will likely run out of cash and not be able to
finance its planned operations or repay its debts, including the
convertible bonds," Bloomberg quotes the company as saying.
"Such events may require the sale of the Talvivaara mine,
Talvivaara or Talvivaara's 84% shareholding in Talvivaara
Sotkamo, which owns the Talvivaara mine, and result in the
insolvency and, ultimately, liquidation of the company."

JPMorgan Chase & Co., Nordea Bank AB, BNP Paribas SA, Bank of
America Corp. and Danske Bank A/S are also underwriters,
Bloomberg discloses.

Talvivaara posted a net loss last quarter of EUR57.6 million
after a profit of EUR1.9 million a year ago and set an output
target of 18,000 metric tons of nickel for this year, Bloomberg
relates.

Talvivaara Mining Co. Ltd. is a Finnish nickel miner.



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G E R M A N Y
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HESS: Files for Insolvency Amid Ongoing Fraud Investigation
-----------------------------------------------------------
Christiaan Hetzner at Reuters reports that Hess filed for
insolvency on Wednesday only months after celebrating its stock
exchange debut, deciding an ongoing fraud investigation would
scupper any hopes of raising fresh equity.

"After intensive examinations, the management board came to the
conclusion that Hess is illiquid, has no positive prognosis of
the continuation of the enterprise and the company is, according
to the current status of examinations, over-indebted," Reuters
quotes the company as saying in a statement.

Hess, which floated late in October, sacked both members of its
management board last month after uncovering fraud that had been
going on for a "remarkable period of time", Reuters recounts.

"Because of uncertainties with regard to possible (law)suits of
investors there are no sufficient chances for acquisition of new
equity or debt capital from investors," Hess, as cited by
Reuters, said on Wednesday.

Hess is German street light maker.


KUKA AG: S&P Raises Corp. Credit Rating to 'B+'; Outlook Positive
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Germany-based industrial automation and robotics
manufacturer KUKA AG to 'B+' from 'B'.  The outlook remains
positive.  At the same time, S&P raised its issue rating on the
group's second-lien debt to 'B' from 'B-'.  The recovery rating
remains unchanged at '5'.

The upgrade reflects KUKA's order intake and consistent earnings
growth in the past few quarters, which have increased its cash
generation and improved its credit measures.  In S&P's view, the
solid order book and track record of successful working capital
management augurs well for stable earnings and cash generation.
S&P also believes the company will benefit from the expansion
plans of its main customers in growth markets such as North
America, Eastern Europe, and Asia-Pacific.

KUKA achieved record-high revenues of EUR1.7 billion in financial
2012 (ended Dec. 31), which helped boost profitability to a
reported EBIT margin of 6.3%.  S&P considers that the improvement
in KUKA's business mix, including higher penetration of the
general industry segment and the introduction of new higher-
margin products should lead it to post similar operating profits
in the next 12 months.

S&P believes that KUKA will likely maintain revenues over the
next two years similar to 2012 as S&P expects it to benefit from
planned investments in new auto production facilities outside
Western Europe.  S&P also believes that KUKA will be able to
maintain a Standard & Poor's-adjusted EBITDA margin of about 7%,
benefiting from the lower operating leverage the company achieved
during its 2010-2011 restructuring, and from an improved business
mix.

At Sept. 30, 2012, KUKA's adjusted debt was EUR249 million.
Although KUKA raised about EUR59 million of convertible notes
(which S&P views as debt under its criteria) S&P anticipates that
the adjusted debt amount will remain in the EUR150 million-
EUR200 million range in near term.  This is because S&P believes
that KUKA is unlikely to make large acquisitions in the next 12
months, and will continue to generate positive free operating
cash flow (FOCF).

Combined with S&P's base-case earnings forecast, S&P anticipates
that KUKA will be able to maintain net debt to EBITDA of about
1.5x and funds from operations (FFO) to debt well above 20% on a
fully-adjusted basis.  S&P also anticipates that KUKA will post
positive (albeit lower than the EUR77 million announced for 2012)
FOCF on a reported basis.  That said, S&P thinks it likely that
cash generation will be tempered until 2014, while the company
expands its production capacity to meet increased demand.  S&P
also notes the downside risks stemming from reliance on customer
advances in working capital financing, which could come under
pressure as sales growth and order intake decelerate.

KUKA's ratings continue to reflect its view of its weak business
risk profile.  However, S&P has revised upward its assessment of
KUKA's financial risk profile to "significant" from "aggressive",
in line with S&P's criteria and to reflect the improvement in its
credit measures.

In S&P's opinion, the ratings are constrained by KUKA's high
exposure to the cyclical auto industry and its weak and volatile
operating margins, albeit somewhat improved over the past few
quarters.  Further constraints include KUKA's difficult position
as a supplier to price-aggressive original equipment
manufacturers (OEMs) and its limited geographic, end-market, and
customer
diversity.

These constraints are partly offset by KUKA's strong and leading
market positions in its niche markets and longstanding
relationships with OEMs, which provide high barriers to entry for
competitors.  KUKA also benefits from some, albeit weak, end-
market diversity, and from the expansion of its main customer
OEMs outside traditional Western European markets.

The positive outlook reflects S&P's view that there is a one-in-
three chance that it could upgrade KUKA in the next 12 months.
This could occur if S&P believes that KUKA's recent improvement
in credit measures is sustainable over time.  S&P considers an
adjusted ratio of debt to EBITDA of less than 3x, and FFO to debt
of more than 20% at all times, as commensurate with a higher
rating.  Positive reported FOCF is also a prerequisite for an
upgrade as is the successful refinancing of the bank facilities
maturing in March 2014.

S&P could consider revising the outlook to stable if KUKA's
credit measures were to weaken significantly.  This could happen
if earnings suffer from a sales decline caused by weak end-
markets, combined with an EBITDA margin that is materially lower
than the 7% S&P forecasts.  S&P could also revise the outlook to
stable if headroom on the interest coverage covenant declines
materially or if the company's liquidity position deteriorates
because of reduced customer prepayments.



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G R E E C E
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DRYSHIPS INC: Announces Upsizing & Pricing of Ocean Rig Shares
--------------------------------------------------------------
DryShips Inc. on Feb. 12 announced the upsizing of the previously
announced public offering of common shares of Ocean Rig that it
owns to 7,500,000 common shares and that the offering has priced
with gross proceeds of approximately US$126.4 million.  Following
the completion of the offering, DryShips is expected to own
approximately 59.4% of Ocean Rig's outstanding shares.  The
offering is expected to close on February 14, 2013.

Deutsche Bank Securities and Credit Suisse are acting as joint
book-running managers for the offering.

                       About DryShips Inc.

Based in Greece, DryShips Inc. -- http://www.dryships.com/--
-- owns and operates drybulk carriers and offshore oil
deep water drilling units that operate worldwide.  As of
Sept. 10, 2010, DryShips owns a fleet of 40 drybulk carriers
(including newbuildings), comprising 7 Capesize, 31 Panamax and 2
Supramax, with a combined deadweight tonnage of over 3.6 million
tons and 6 offshore oil deep water drilling units, comprising of
2 ultra deep water semisubmersible drilling rigs and 4 ultra deep
water newbuilding drillships.

DryShips's common stock is listed on the NASDAQ Global Select
Market where it trades under the symbol "DRYS".

On Nov. 25, 2010, DryShips Inc. entered into a waiver letter
for its US$230.0 million credit facility dated Sept. 10, 2007,
as amended, extending the waiver of certain covenants through
Dec. 31, 2010.

The Company reported a net loss of US$47.28 million in 2011,
compared with net income of US$190.45 million during the prior
year.

The Company's balance sheet at Dec. 31, 2011, showed
US$8.62 billion in total assets, US$4.68 billion in total
liabilities, and US$3.93 billion in total equity., Inc.



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ANGLO IRISH: ISDA Declares Bankruptcy Credit Event
--------------------------------------------------
Abigail Moses at Bloomberg News reports that International Swaps
& Derivatives Association said bankruptcy credit event has
occurred at Irish Bank Resolution Corp., successor to Anglo Irish
Bank.

According to Bloomberg, the ISDA Web site said that the
determinations Committee was set to hold a meeting on Feb. 14 to
discuss whether auction should be held.

Anglo Irish credit-default swaps were settled in 2011 after
nationalized lender changed terms on sub bonds, wiping out
investors who didn't exchange the notes at 80% discount,
Bloomberg relates.

Anglo Irish Bank was an Irish bank headquartered in Dublin from
1964 to 2011.  It went into wind-down mode after nationalization
in 2009.  In July 2011, Anglo Irish merged with the Irish
Nationwide Building Society, with the new company being named the
Irish Bank Resolution Corporation.


PHOSAGRO BOND: Fitch Assigns 'BB+' Final Senior Unsecured Rating
----------------------------------------------------------------
Fitch Ratings has assigned Phosagro Bond Funding Limited's issue
of 4.204% notes due February 2018, for the aggregate amount of
US$500 million, a final senior unsecured 'BB+' rating.

The rating action follows a review of the final documentation
materially conforming to the draft documentation reviewed when
Fitch assigned the expected 'BB+(EXP)' rating on January 30,
2013.

KEY DRIVERS:

- LPNs Not Subordinated

The transaction is structured in the form of a loan from the
issuer, Phosagro Bond Funding Limited, an Ireland-based private
limited liability company established for this sole purpose, to
the borrower, OJSC PhosAgro, pursuant to the terms of a loan
agreement. Operating companies, OJSC Apatit, Balakovo Mineral
Fertilisers LLC and OJSC PhosAgro-Cherepovets, provide
irrevocable and unconditional guarantees in respect of PhosAgro's
obligations under the loan.

- Strong Market Position

PhosAgro, with the annual output of more than 3.6m tonnes of
DAP/MAP and overall fertilizer, feed phosphate and technical
phosphate capacity over 6.2m tonnes is the second largest global
producer of phosphate fertilisers behind MOS Holdings Inc
(Mosaic; 'BBB'/Positive). PhosAgro's sales structure by regions
is diversified with the focus on the Russian/CIS, European and
Asian markets.

- Self-Sufficiency in Raw Materials

The company owns phosphate rock deposit with more than 2bn tonnes
of high-quality resources according to the JORC Code which
provides a comfortably long mine life of around 75 years based on
current extraction volumes. The company also owns ammonia
production facilities which cover more than 90% of its internal
requirements.

In Fitch's view, in the longer term the concentrated supply
structure of phosphate rock and the depletion of phosphate rock
deposits held by some producers will provide greater pricing
power to the remaining phosphate rock producers given the
relatively inelastic and increasing demand for phosphates.

- Competitive Cost Position

PhosAgro's vertically integrated business model with access to
local low-cost feedstock contributes to a low operating costs
position compared to its competitors. PhosAgro, along with other
Russian corporates faces the potential for natural gas prices to
increase in the coming years at a higher rate than general
inflation. This may negatively affect the company's margins,
although Fitch notes that the company may be able to partially
offset this with improvements in gas consumption efficiency at
its ammonia plants.

- Conservative Capital Structure

The company's capital structure is conservative with funds from
operations (FFO) adjusted net leverage of 0.64x at end-2011 and
expected by Fitch to be 0.70x at end-2012. Forecasted negative
free cash flow in FY2013-2014 will contribute to the increase of
FFO adjusted net leverage to 0.9x by end-2013 and to 1.1x by end-
2014. Nevertheless leverage levels will remain moderate and are
key support for the company's ratings.

- Country Risk

PhosAgro has limited geographic diversification with all the
company's assets being located in Russia. In Fitch's view, this
exposure entails higher-than average political, business and
regulatory risks.

RATING SENSITIVITIES:

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

- FFO adjusted net leverage below 1.5x
- Proven track record of solid corporate governance practices

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

- FFO adjusted net leverage sustainably above 2.5x
- EBITDAR margin sustainably below 20%

OJSC PhosAgro's ratings:

  -- Long-term foreign currency Issuer Default Rating (IDR):
     'BB+'; Outlook Stable
  -- Short-term foreign currency IDR: 'B'
  -- Senior unsecured foreign currency rating: 'BB+'
  -- Long-term local currency IDR: 'BB+'; Outlook Stable
  -- Senior unsecured local currency rating: 'BB+'
  -- National Long-term rating: 'AA(rus)'; Outlook Stable


TALISMAN-3 FINANCE: S&P Cuts Ratings on Three Note Classes to 'D'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CC
(sf)' its credit ratings on Talisman-3 Finance PLC's class D, E,
and F notes.  The ratings will remain at 'D (sf)' for a minimum
period of 30 days.

The downgrades follow the servicer's announcement of the
repayment in full of the final remaining loan in the portfolio,
the Waterloo Loan.

As S&P anticipated in November 2012, when it lowered its ratings
on the class D, E, and F notes to 'CC (sf)', all of these classes
of notes have now suffered principal losses.

The January 2013 cash manager report demonstrates a write-down of
principal losses amounting to EUR20,744,603.  The servicer
applied the write-down of these losses to the class D, E, and F
notes on the January 2013 interest payment date.

Therefore, as S&P base its ratings on the timely payment of
interest and full payment of principal, S&P has lowered to 'D
(sf)' from 'CC (sf)' its ratings on these classes of notes.

As the final remaining Waterloo Loan has been repaid, the ratings
will remain at 'D (sf)' for a minimum period of 30 days.

Talisman-3 Finance is a commercial mortgage-backed securities
(CMBS) transaction that closed in 2006, with notes totaling
EUR689.9 million.  It was initially secured against 13 loans, all
of which have now repaid.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class             Rating
           To              From

Talisman-3 Finance PLC
EUR689.9 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Lowered

D          D (sf)         CC (sf)
E          D (sf)         CC (sf)
F          D (sf)         CC (sf)



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I T A L Y
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TELECOM ITALIA: Fitch Rates Subordinated Securities 'BB+(EXP)'
--------------------------------------------------------------
Fitch Ratings has assigned Telecom Italia's (TI, 'BBB'/Negative)
proposed reset subordinated securities maturing in 2073 an
expected rating of 'BB+(EXP)'. The final rating is contingent on
the receipt of final documents conforming materially to the
preliminary documentation.

The upcoming hybrid securities are proposed to be deeply
subordinated and to rank senior only to TI's share capital, while
coupon payments can be deferred at the option of the issuer. As a
result of these features, the 'BB+(EXP)' rating assigned to the
proposed securities is two notches down from TI's 'BBB' Long-term
Issuer Default Rating (IDR) which reflects the securities'
increased loss severity and heightened risk of non-performance
relative to the senior obligations. This approach is in
accordance with Fitch's criteria, "Treatment and Notching of
Hybrid in Nonfinancial Corporate and REIT Credit Analysis" dated
December 13, 2012 at www.fitchratings.com.

The proposed securities qualify for 50% equity credit as they
meet Fitch's criteria with regards to subordination, effective
maturity of at least five years, full discretion to defer coupons
for at least five years and limited events of default.
The proposed securities have a fixed maturity of 60 years.
However, the issuer will no longer be subject to replacement
language disclosing the company's intent to redeem the instrument
from 2038 with the proceeds of a similar instrument or with
equity. Hence 2038 is viewed as the securities' effective
maturity date. The instrument's equity credit would switch to
zero five years prior to this date (i.e. in 2033).

The issuer has a call option to redeem the notes on the first
call date in 2018, and there will be a coupon step-up of 25bps
from 2023 onwards and a further incremental step-up of 75 basis
points from 2038 onwards.

There is no look-back provision in the securities' documentation,
which gives the issuer full discretion to defer ongoing coupon
payments on these securities. Deferrals of coupon payments are
cumulative. The company will be obliged to make a mandatory
settlement of deferred interest payments under certain
circumstances, including a declaration or payment of a dividend.

KEY DRIVERS

The affirmation of Telecom Italia's 'BBB' rating on 11 February
2013 with a Negative Outlook, reflects the company's intention to
strengthen the balance sheet by halving shareholder dividends and
issuing up to EUR3 billion of hybrid bonds in the next 24 months
which partly offsets the weaker than expected domestic
performance. Management has shown it is committed to reducing
leverage but Fitch is concerned that TI will have fewer debt
reduction options in future to address further deterioration in
the business, whether due to continued regulatory and competitive
pressure or a weaker economy.

- Leverage Remains High

TI ended 2012 with leverage -- measured by unadjusted net debt to
EBITDA, excluding Telecom Argentina -- at around 2.75x, broadly
unchanged since 2010. With continued declines in EBITDA, Fitch
expects leverage will increase in 2013. Fitch's scenario analysis
shows that under certain conditions, driven by a worsening macro-
economic environment, and sluggish Brazilian growth, TI's
leverage could breach the key 3.0x threshold, which would result
in negative rating action.

- Domestic Strength and Weakness

TI's key strength is its strong position in the domestic fixed-
line business, which underpins the high domestic EBITDA margin. A
lack of cable competition in Italy means that TI is not facing an
immediate threat from a triple-play competitor with a superior
network advantage. It does not have the same pressure to rollout
a fibre network as some other European incumbents. TI is relying
on management's disciplined approach to controlling operating
costs and capex to offset the pressure on the domestic business,
as well as the increasing impact from a weak economy.

- Protecting Cash Flow Generation

The challenge facing TI is to maintain its domestic market
position in an increasingly price competitive market while
protecting free cash flow generation and reducing leverage.
Improving efficiency in operations and capital expenditure should
go some way to preserve profitability. Continued investment in
long-term evolution mobile network upgrades and fibre deployment
should allow TI to increasingly differentiate its service
offering based on network quality.

- Limited Contribution from Brazil

Brazil currently provides just under 10% of the group's EBITDA
less capex (excluding Telecom Argentina). Revenue growth
expectations for 2013 and 2014 have been scaled back due to a
slowing economy and higher than expected mobile termination rate
cuts. Growth in 2015 and beyond could increase as economic growth
picks up and regulatory and competitive challenges are overcome.
TI also has to contest a legal case brought by the Brazilian tax
authorities, claiming EUR550 million in unpaid taxes. The
judicial process is likely to be lengthy. TI believes it is in a
good position and does not expect to incur any charges and
therefore has not made any provision to cover this potential
liability.

- Network Spin-off

TI has been considering spinning off its fixed network. The
impact of such a transaction on TI's rating is difficult to
assess at this stage given the different possible outcomes and
therefore is treated as event risk.

RATING SENSITIVITIES

Negative:

- Leverage as measured by unadjusted net debt to EBITDA
   (excluding Telecom Argentina) sustainably above 3.0x could
   result in TI's Long-term IDR being downgraded.

- Revenue and EBITDA trends in the domestic business in 2013
   which are worse than that reported in 2012 could also result
   in TI's Long-term IDR being downgraded.

Positive:

- A revision of the Outlook on Italy's sovereign rating ('A-
   '/Negative) to Stable might result in a similar revision of
   the Outlook on Telecom Italia's IDR, as this would point to a
   lowering of macroeconomic and refinancing risk.

- A sustained improvement in the company's domestic business's
   operating and financial profile would be required before the
   Outlook on Telecom Italia's IDR could be revised to Stable.

LIQUIDITY

Liquidity at TI remains healthy. TI had EUR8.18 billion of cash
and cash equivalents on its balance sheet at the end of 2012 as
well as EUR7.95 billion of undrawn committed facilities (which
includes EUR4 billion available till May 2017). The issue of the
hybrid bond should further improve liquidity. This should allow
TI to cover debt maturities well into 2014.

Fitch may have provided another permissible service to the rated
entity or its related third parties. Details of this service can
be found on Fitch's website in the EU regulatory affairs page.



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DH SERVICES: Moody's Assigns 'Caa1' Rating to $265MM Senior Notes
-----------------------------------------------------------------
Moody's Investors Service assigned definitive B1 ratings with a
loss given default assessment of LGD3 (33%) to the recent
issuance of a US$540 million senior secured loan due 2019 and a
senior secured US$75 million revolving credit facility due 2017
by Mirror BidCo Corp, a subsidiary of DH Services Luxembourg
S.a.r.l.

Concurrently, Moody's has assigned a definitive Caa1 rating
(LGD5, 87%) to the US$265 million of senior notes due 2020 issued
by DH Services Luxembourg S.a.r.l. DH Services Luxembourg's B2
corporate family rating and B2-PD probability of default rating
are unchanged. The outlook on all ratings is negative. DH
Services Luxembourg is the holding company which acquired
logistics provider Dematic towards the end of 2012.

Moody's definitive ratings on these debt obligations confirm the
provisional ratings assigned on December 7, 2012.

In connection with these actions, Moody's has also withdrawn the
B2 CFR and the B2-PD PDR of Dematic Holding S.a.r.l because the
company's previously rated obligations are no longer outstanding,
given DH Services Luxembourg's completed purchase of the company
and redemption of its existing indebtedness.

Assignments:

Issuer: DH Services Luxembourg S.a.r.l

US$265 million Senior Unsecured Regular Bond/Debenture, Assigned
Caa1, LGD5, 87%

Issuer: Mirror BidCo Corp

US$540 million Senior Secured Bank Credit Facility, Assigned B1,
LGD3, 33 %

US$75 million Senior Secured Bank Credit Facility, Assigned B1,
LGD3, 33 %

Withdrawals:

Issuer: Dematic Holding S.a.r.l.

Probability of Default Rating, Withdrawn, previously rated B2-PD

Corporate Family Rating, Withdrawn, previously rated B2

Outlook, Changed To Rating Withdrawn From Negative

Ratings Rationale

"Our assignment of a definitive Caa1 rating on the senior notes
reflects their effective subordination to the senior secured
credit facilities, to which we've assigned a definitive B1
rating. Both the senior notes and the senior secured credit
facilities benefit from guarantees from subsidiaries that we
understand comprise the guarantors' material assets," says
Kathrin Heitmann, Moody's lead analyst for DH Services
Luxembourg.

The US$265 million of senior notes were issued by holding company
DH Services Luxembourg, whereas the US$540 million senior secured
term loan and US$75 million revolving credit facility (senior
secured credit facilities) were issued by Mirror BidCo Corp., a
holding company and subsidiary of DH Services Luxembourg. Both
the senior notes and the senior secured credit facilities will be
supported by guarantees from subsidiaries representing not less
than 80% of the consolidated EBITDA and assets of the group.
Lenders under the senior secured credit facilities benefit from
first-lien ranking security over a material amount of the group's
assets including bank accounts, certain fixed assets, certain
intangible assets, certain trade receivables and share pledges.

DH Services Luxembourg's B2 CFR with a negative outlook reflects
the company's high pro-forma leverage of 6.2x debt/EBITDA as
adjusted by Moody's, which leaves little cushion for weaker-than-
expected performance. However, the rating incorporates Moody's
expectation that the company will be able to deleverage as a
result of EBITDA growth and through applying free cash flow
generation to debt repayments.

The rating is also constrained by poor and volatile historical
operating performance in the years 2007-09, to some extent driven
by poor project execution. DH Services Luxembourg also remains
vulnerable to the risk that customers will curtail their
investments in supply-chain optimization in a continued weak
macroeconomic environment, albeit this is mitigated by the
group's customer base, which mainly consists of companies in the
less cyclical retail and food sectors.

More positively, the rating considers (1) the company's leading
market position in its niche of the fragmented automated material
handling industry and diversified geographic footprint; (2)
positive demand trends over the past three years due to its
customers' increasing need for automation of material handling
systems; (3) the improvements in the company's project execution
and its streamlined cost structure, which has supported
improvements in EBITDA margins and free cash flow generation,
evidenced by solid EBITDA margins of 12.2% as adjusted by Moody's
in FY 2012 (fiscal year ends September).

What Could Change The Rating Up/Down

Moody's could downgrade the ratings if (1) the company generated
negative free cash flow; (2) failed to deleverage towards 5.0x
debt/EBITDA in the next 12-18 months; or (3) its liquidity
profile weakened.

Given the negative outlook on the ratings, a rating upgrade is
currently unlikely. However, Moody's could consider a rating
upgrade if DH Services Luxembourg (1) established a conservative
financial policy and a healthy short-term liquidity profile, with
ample covenant headroom; and (2) sustained the recent
improvements in its operating performance, including during
periods of lower volume growth, such that its debt/EBITDA moved
below 3.5x, its EBIT/interest expense moved above 2.0x and the
company generated positive free cash flow.

The principal methodology used in this rating was the Global
Manufacturing Industry published in December 2010. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Headquartered in Luxembourg, DH Services Luxembourg S.a.r.l is
the holding company, owning Dematic, a leading provider of
logistics and materials handling solutions with a strong focus on
food, general merchandise and apparel retail. Dematic was
acquired end of 2012 by funds managed by private equity firms AEA
Investors LP and Teachers' Private Capital (the private equity
arm of Ontario Teachers' Pension Plan) from the previous owner
Triton.



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


FAXTOR ABS 2003-1: Moody's Cuts Ratings on 2 Note Classes to Caa3
-----------------------------------------------------------------
Moody's Investors Service has taken action on the ratings of the
following classes of notes:

Issuer: Faxtor ABS 2003-1B.V.:

EUR223M Class A-1E Floating Rate Notes (EUR34M outstanding),
Upgraded to Aaa (sf); previously on Apr 23, 2009 Confirmed at Aa1
(sf)

EUR23M Class A-2E Floating Rate Notes, Downgraded to A3 (sf);
previously on Apr 23, 2009 Downgraded to A2 (sf)

EUR9M Class A-2F Fixed Rate Notes, Downgraded to A3 (sf);
previously on Apr 23, 2009 Downgraded to A2 (sf)

EUR7.5M Class A-3E Floating Rate Notes, Downgraded to Caa1 (sf);
previously on Apr 23, 2009 Downgraded to Baa3 (sf)

EUR15M Class A-3F Fixed Rate Notes, Downgraded to Caa1 (sf);
previously on Apr 23, 2009 Downgraded to Baa3 (sf)

EUR5.5M Class BE Floating Rate Notes, Downgraded to Caa3 (sf);
previously on Nov 9, 2009 Downgraded to Caa1 (sf)

EUR9.5M Class BF Fixed Rate Notes, Downgraded to Caa3 (sf);
previously on Nov 9, 2009 Downgraded to Caa1 (sf)

Issuer: Faxtor ABS 2004-1B.V.:

EUR264M Class A-1 Floating Rate Notes (EUR77M outstanding),
Upgraded to Aaa (sf); previously on Apr 23, 2009 Confirmed at Aa2
(sf)

EUR25M Class A-3 Floating Rate Notes, Downgraded to Ba1 (sf);
previously on Apr 23, 2009 Downgraded to A3 (sf)

EUR12M Class BE Floating Rate Notes, Downgraded to B3 (sf);
previously on Apr 23, 2009 Confirmed at Ba1 (sf)

EUR5M Class BF Fixed Rate Notes, Downgraded to B3 (sf);
previously on Apr 23, 2009 Confirmed at Ba1 (sf)

EUR8M Class S Combination Notes, Downgraded to Ba1 (sf);
previously on Dec 15, 2010 Upgraded to Baa2 (sf)

Moody's also affirmed the ratings of the following classes of
notes:

Issuer: Faxtor ABS 2004-1B.V.:

EUR35M Class A-2 Floating Rate Notes, Affirmed Aa3 (sf);
previously on Apr 23, 2009 Confirmed at Aa3 (sf)

Faxtor 2003-1 and Faxtor 2004-1 are both structured finance
collateralized debt obligations (SF CDOs) backed by a portfolio
of predominantly European RMBS and ABS tranches. The reinvestment
period ended in May 2008 and July 2009 respectively. Both
portfolios are managed by IMC Asset Management B.V.

Ratings Rationale

The upgrades of the senior notes of each issuer are driven by the
level of amortization of the initial principal. According to the
November 2012 trustee note valuation report of Faxtor 2003-1,
only 17.42% of the Class A-1E remain. The EUR34 million remaining
of Class A-1E is collateralized by approximately EUR108 million
of asset par and EUR6.8 million in cash. The Class A-1 of Faxtor
2004-1 has about EUR77.19 million remaining, 38.75% of the
initial issuance, according to the July 2012 note valuation
report. The tranche is collateralized by EUR181.68 million of
asset par and EUR13.24 million in cash.

The downgrades of the junior tranches is explained by their
exposure to a significant portion of assets downgraded and left
on review for downgrade by Moody's. Approximately 32% of the
portfolio of Faxtor ABS 2003-1 B.V. and nearly 34% that of Faxtor
ABS 2004-1 B.V. are on review for downgrade. The Faxtor ABS 2003-
1 B.V. portfolio consists of 36.6% of assets domiciled in Italy,
Portugal and Spain. The Faxtor ABS 2004-1 B.V. portfolio consists
of 57.3% of assets domiciled in Italy, Portugal and Spain.

In Moody's base case analysis, all assets that are under review
for downgrade were assumed to be downgraded by 2 notches.

Moody's performed sensitivity analyses of the rated notes testing
several scenarios of the eventual resolution of the reviews on
reference assets:

(1) Half of the assets on review downgraded by two notches -- In
this scenario we assumed that only the worst rated half of the
assets on review are downgraded. This scenario is intended to
test the best case outcome of the reviews. The model returned
results about one notch better than the base case results.

(2) Speculative grade rated assets were notched more than the
investment grade assets -- In this scenario we assumed that
speculative grade rated assets will be downgraded more than
investment grade rated assets. The model returned results about
one notch worse than the base case results.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the
ratings of the notes, as evidenced by uncertainties of credit
conditions in the general economy. SF CDO notes' performance may
also be impacted either positively or negatively by 1) the
liquidation agent behavior and 2) divergence in legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Sources of additional performance uncertainties are described
below:

(1) Recovery on defaulted assets: Market value fluctuations in
defaulted assets reported by the trustee and those assumed to be
defaulted by Moody's may create volatility in the deal's
overcollateralization levels. Further, the timing of recoveries
and the manager's decision to work out versus sell defaulted
assets create additional uncertainties. Moody's analyzed
defaulted recoveries assuming the lower of the market price and
the recovery rate in order to account for potential volatility in
market prices.

(2) Portfolio Amortization: Pace of amortization could vary
significantly subject to market conditions and this may have a
significant impact on the notes' ratings. Assets domiciled in
countries affected by the sovereign credit crisis may amortize
over a longer time horizon than Moody's model assumptions. In
addition well performing assets typically amortize earlier than
expected, increasing the concentration of poor credit quality
assets. Fast amortization would usually benefit the ratings of
the senior notes.

The principal methodology used in this rating was Moody's
Approach to Rating SF CDOs published in May 2012.

In rating this transaction, Moody's supplemented the model runs
by using CDOROM to simulate the default and recovery scenario for
each assets in the portfolio. Losses on the portfolio derived
from those scenarios have then been applied as an input in the
Moody's EMEA Cash-Flow model to determine the loss for each
tranche. In each scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders. By repeating this process and averaging over the
number of simulations, an estimate of the expected loss borne by
the notes is derived. The Moody's CDOROM relies on a Monte Carlo
simulation which takes the Moody's default probabilities as
input. Each asset in the portfolio is modeled individually with a
standard multi-factor model reflecting Moody's asset correlation
assumptions. The correlation structure implemented in CDOROM is
based on a Gaussian copula. As such, Moody's analysis encompasses
the assessment of stressed scenarios.

In addition to the quantitative factors that are explicitly
modeled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record,
and the potential for selection bias in the portfolio. All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.

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


LAURELIN II: Fitch Affirms 'BB' Rating on Class E Notes
-------------------------------------------------------
Fitch Ratings has affirmed Laurelin II B.V.'s notes, as follows:

EUR147.2m Class A-1E (ISIN XS0305009382): affirmed at 'AAAsf';
Outlook Stable

EUR90.0m Class A-1R (no ISIN): affirmed at 'AAAsf'; Outlook
Stable

GBP30.4m Class A-1S (ISIN XS0305009465): affirmed at 'AAAsf';
Outlook Stable

EUR15.8m Class A-2 (ISIN XS0305009978): affirmed at 'AAAsf';
Outlook Stable

EUR26.0m Class B-1 (ISIN XS0305010398): affirmed at 'AAsf';
Outlook Stable

EUR15.0m Class B-2 (ISIN XS0305095365): affirmed at 'AAsf';
Outlook Stable

EUR26.0m Class C (ISIN XS0305010471): affirmed at 'Asf'; Outlook
Stable

EUR12.5m Class D-1 (ISIN XS0305010711): affirmed at 'BBBsf';
Outlook revised to Stable from Negative

EUR10.5m Class D-2 (ISIN XS0305195157): affirmed at 'BBBsf';
Outlook revised to Stable from Negative

EUR17.0m Class E (ISIN XS0305011016): affirmed at 'BBsf'; Outlook
Negative

EUR1.7m Class X (ISIN XS0305096330): affirmed at 'BBBsf'; Outlook
revised to Stable from Negative

The affirmations reflect adequate credit enhancement. Assets
rated 'CCC' or below have increased to 6.41% from 4.71% at the
last review in February 2012. The transaction has experienced two
defaults since the last review. The weighted average spread of
the portfolio has increased to 4.07% from 3.92% at the last
review.

The overcollateralization (OC) tests have never failed. OC test
results declined towards the end of 2012 as a result of defaults
in the portfolio but have since recovered. The interest coverage
tests are passing with rising cushions.

The Negative Outlook on the class E notes reflects their
sensitivity to refinancing risk. Lower quality obligors may face
difficulties finding alternative financing, leaving them unable
to repay the securitized loans once they reach maturity.
Currently, 10.5% of the portfolio is scheduled to mature by the
end of 2014.

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 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.

Laurelin II B.V. is a securitization of mainly senior secured,
senior unsecured, second-lien, and mezzanine loans (including
revolvers) extended to mostly European obligors. At closing, a
total note issuance of EUR450 million was used to invest in a
target portfolio of EUR438 million. The portfolio is actively
managed by GoldenTree Asset Management L.P.


PANTHER CDO V: S&P Affirms 'CCC-' Rating on Class E Notes
---------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Panther CDO V B.V.'s class A1, A2, B, and C notes.  At the same
time, S&P has affirmed its ratings on the class D and E notes.

The rating actions follow S&P's assessment of the transaction's
performance based on the trustee report (dated Dec. 31, 2012),
S&P's credit and cash flow analysis, the application of its
relevant criteria, and recent transaction developments.

Since S&P's previous review of this transaction on April 19,
2012, S&P has observed an increase in the credit enhancement for
all classes of notes.  This increase in credit enhancement is due
to the deleveraging of the class A1 notes and deferred interest
payments made to the class C and D notes on the October payment
date.  The weighted-average spread earned on the assets has also
increased since S&P's previous review.  The split between
structured finance assets and corporate loans and bonds in the
pool was, as of December 2012, more or less equal.

The proportion of assets that S&P considers to be rated in the
'CCC' category ('CCC+', 'CCC', or 'CCC-') and that S&P considers
to be defaulted (assets rated 'CC', 'C', 'SD' [selective
default], and 'D') has increased since S&P's previous review.
The proportion of assets rated in the investment-grade category
(from 'AAA' to 'BBB-') has decreased since S&P's previous review.

The class A, B, and C par coverage tests comply with the required
triggers under the transaction documents.  However, the class D
and E par coverage tests are failing.  At S&P's previous review,
only the class E par coverage test was failing.

S&P has subjected the capital structure to its cash flow
analysis, based on the methodology and assumptions outlined in
S&P's 2012 and 2009 collateralized debt obligation (CDO)
criteria, to determine the break-even default rate (BDR) at each
rating level.

S&P used the reported portfolio balance that it considered to be
performing, the principal cash balance (if any), the weighted-
average spread, and the weighted-average recovery rates that S&P
considered to be appropriate.  S&P incorporated various cash flow
stress scenarios, using various default patterns, in conjunction
with different interest rate stress scenarios as outlined in
S&P's criteria.

To help assess the collateral pool's credit risk, S&P used CDO
Evaluator 6.0.1 to generate scenario default rates (SDRs) at each
rating level.  S&P then compared these SDRs with their respective
BDRs.

S&P has analyzed counterparty risk by applying its 2012
counterparty criteria.  The transaction features an interest rate
hedge and asset swaps, the documents for which do not comply with
S&P's current counterparty criteria.  As such, the maximum
potential rating on the notes can be no higher than one notch
above the issuer credit rating of the counterparty, unless the
current credit enhancement available to the notes is sufficient
to cover both asset credit risk and counterparty risk--after the
application of appropriate rating stresses.  The transaction
documents for the bank account comply with S&P's criteria.

Taking into account the observations outlined above, S&P
considers that the levels of credit enhancement available to
class A1, A2, B, and C notes are commensurate with higher ratings
than previously assigned.  S&P has therefore raised its ratings
on the class A1, A2, B, and C notes.  The levels of credit
enhancement available for the class D and E notes are
commensurate with their current ratings.  S&P has therefore
affirmed its ratings on the class D and E notes.

The largest obligor test and largest industry test are two
supplemental stress tests that S&P introduced in its 2012 CDO
criteria.  These tests address event and model risk that might be
present in the transaction and assess whether a CDO tranche has
sufficient credit enhancement (not including excess spread) to
withstand specified combinations of underlying asset defaults in
addition to S&P's cash flow analysis.  These tests do not
constrain the current ratings in this transaction.

Panther CDO V is a CDO transaction backed by pools of structured
finance assets and corporate bond and loans, which closed August
2007.  This semi-annual paying transaction is still in its
reinvestment period, which is scheduled to end in October 2014.
S&P's ratings on the class A1 and A2 notes address timely payment
of interest and ultimate payment of principal, and its ratings on
the other classes of notes address ultimate payment of interest
and principal.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class                Rating
            To                  From

Panther CDO V B.V.
EUR350 Million Senior Secured and Deferrable Floating-Rate Notes
and Subordinated Notes

Ratings Raised

A1          AA+ (sf)            AA- (sf)
A2          A+ (sf)             A- (sf)
B           BBB+ (sf)           BBB- (sf)
C           BB+ (sf)            BB- (sf)

Ratings Affirmed

D           CCC+ (sf)
E           CCC- (sf)


SNS REAAL: Nationalization Triggers Restructuring Credit Event
--------------------------------------------------------------
Abigail Moses at Bloomberg News reports that the International
Swaps & Derivatives Association said the nationalization of SNS
Reaal NV constitutes a restructuring credit event that will
trigger payouts on derivatives insuring the debt.

ISDA said on its Web site that its determinations committee, a
group of 15 dealers and money managers that govern the market,
was set to meet on Feb. 13 to decide whether to hold one or more
auctions to settle the contracts, Bloomberg relates.  According
to Bloomberg, settlement may be distorted because the securities
that could be delivered in exchange for compensation were
expropriated by the Dutch government.

SNS was nationalized after real estate losses brought the fourth-
largest Dutch bank to the brink of collapse, Bloomberg recounts.
Expropriation isn't explicitly covered by ISDA's defined
categories of credit events, which include bankruptcy, failure to
pay and restructuring, and the committee twice deferred a ruling,
Bloomberg states.

Though contracts on SNS aren't actively traded, the impact of the
expropriation is proving a test for the market, Bloomberg notes.
ISDA, Bloomberg says, is working on changes to standard swaps
contracts to address issues highlighted by credit events since
the definitions were written.

SNS REAAL NV -- http://www.snsreaal.nl-- is a Netherlands-based
financial services provider engaged in banking and insurance.
The Company's activities are divided into five segments: SNS
Bank, providing banking services both for the retail and small
and medium enterprises, such as mortgages, asset growth and asset
protection, insurance, payments, savings and financing; Property
Finance; Zwitserleven, providing pension insurance services,
mortgages and investment products; REAAL providing life and non-
life insurances; and Group activities.  As of December 31, 2011,
the Company operated through 16 wholly owned subsidiaries, such
as SNS Bank NV, REAAL NV, SNS REAAL Invest NV and SNS Asset
Management NV, among others.



===========
N O R W A Y
===========


* NORWAY: Moody's Changes Banking System Outlook to Stable
----------------------------------------------------------
The outlook for Norway's banking system has been changed to
stable from negative, says Moody's Investors Service in a new
Banking System Outlook entitled "Banking System Outlook: Norway".

The drivers of the outlook include the rating agency's
expectations that (1) the Norwegian operating environment will
remain supportive, with low interest rates and high employment
buoying asset quality; (2) banks' capital levels will remain
strong enough to provide adequate buffers against potential
losses; and (3) profitability will be underpinned by stable
revenues and modest loan loss provisions.

At the same time, Norwegian banks' reliance on market funding
poses a key risk to the system. In addition, Moody's continues to
see some longer-term risks related to the fragile economic
situation in Europe, households' high debt levels, sensitivity to
changes in interest rates and potentially over-inflated house
prices.

The Norwegian economy's strength provides a core element of the
stable outlook for the Norwegian banking sector. Moody's expects
the domestic economy to grow by over 3% in 2012-13, and
unemployment to remain around its currently very low level.
Although Norway's economy is sensitive to developments in the
euro area, the government's robust balance sheet provides it with
considerable financial flexibility to dampen the effects of a
cyclical downturn in the real economy.

Moody's expects asset quality will remain strong over the outlook
period, although medium-term risks are perceived as rising. The
rating agency does not expect a material increase in problem
loans in banks' retail loan books as long as interest rates and
unemployment remain low; however, in the longer run, elevated
household indebtedness and a protracted rise in house prices may
undermine the sustainability of the banks' currently sound
residential mortgage performance. In addition, banks' often
substantial exposure to commercial real estate and, in some
cases, shipping is a challenge to their corporate loan books'
credit quality. Against this backdrop, Moody's views Norwegian
banks' recently strengthened capital levels as adequate to
withstand a moderate deterioration in asset quality.

Over the outlook period, Moody's expects that banks' revenue
generation will continue to be underpinned by moderate lending
growth and recently increased lending margins, mitigating the
negative impact of continued high funding costs. Effective cost
containment and relatively limited loan loss provisions will also
be supportive factors to banks' bottom lines.



===========
P O L A N D
===========


CENTRAL EUROPEAN: M. Kaufman Nominates Self, 3 Others to Board
--------------------------------------------------------------
Mark Kaufman notified Central European Distribution Corporation
of his nomination of William V. Carey, Tom Wilen, Philippe
Leopold and himself as candidates for election as directors of
CEDC to be voted on at the forthcoming annual meeting of
shareholders on March 26.

Mr. Kaufman and W & L Enterprises Ltd. together beneficially own
7,417,549 shares of the Company's common stock, representing
approximately 9.4% of the Company's common shares, as reported by
the TCR on Jan. 30, 2013.

A complete copy of the regulatory filing is available at:

                        http://is.gd/TzHiNC

                            About CEDC

Mt. Laurel, New Jersey-based Central European Distribution
Corporation is one of the world's largest vodka producers and
Central and Eastern Europe's largest integrated spirit beverages
business with its primary operations in Poland, Russia and
Hungary.

Ernst & Young Audit sp. z.o.o., in Warsaw, Poland, expressed
substantial doubt about Central European's ability to continue as
a going concern, following the Company's results for the fiscal
year ended Dec. 31, 2011.  The independent auditors noted that
certain of the Company's credit and factoring facilities are
coming due in 2012 and will need to be renewed to manage its
working capital needs.

The Company's balance sheet at Sept. 30, 2012, showed
US$1.98 billion in total assets, US$1.73 billion in total
liabilities, US$29.44 million in temporary equity, and US$210.78
million in total stockholders' equity.

                             Liquidity

The Company's Convertible Senior Notes are due on March 15, 2013.
The Company has said its current cash on hand, estimated cash
from operations and available credit facilities will not be
sufficient to make the repayment of principal on the Convertible
Notes and, unless the transaction with Russian Standard
Corporation is completed the Company may default on them.  The
Company's cash flow forecasts include the assumption that certain
credit and factoring facilities coming due in 2012 would be
renewed to manage working capital needs.  Moreover, the Company
had a net loss and significant impairment charges in 2011 and
current liabilities exceed current assets at June 30, 2012.
These conditions, the Company said, raise substantial doubt about
its ability to continue as a going concern.

                           *     *     *

As reported by the TCR on Aug. 10, 2012, Standard & Poor's
Ratings Services kept on CreditWatch with negative implications
its 'CCC+' long-term corporate credit rating on U.S.-based
Central European Distribution Corp. (CEDC), the parent company of
Poland-based vodka manufacturer CEDC International sp. z o.o.
S&P said the CreditWatch status reflects its view that
uncertainties remain related to CEDC's ongoing accounting review
and that CEDC's liquidity could further and substantially weaken
if there was a breach of covenants which could lead to the
acceleration of the payment of the 2016 notes, upon receipt of a
written notice of 25% or more of the noteholders.

As reported by the TCR on Jan. 16, 2013, Moody's Investors
Service has downgraded the corporate family rating (CFR) and
probability of default rating (PDR) of Central European
Distribution Corporation (CEDC) to Caa3 from Caa2.  The downgrade
follows CEDC announcement on December 28 that it had agreed with
Russian Standard a revised transaction to repay its $310 million
of convertible notes due March 2013 which, in Moody's view, has
increased the risk of potential loss for existing bondholders,
says Paolo Leschiutta, a Moody's Vice President - Senior Credit
Officer and lead analyst for CEDC.



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


BYSTROBANK JSC: Fitch Assigns 'B-' Rating to Unsecured RUB Bonds
----------------------------------------------------------------
Fitch Ratings has assigned JSC BystroBank's two upcoming debut
issues of senior unsecured RUB bonds, Series 01 and 02, expected
Long-term ratings of 'B-(EXP)' and National Long-term ratings of
'BB-(rus)(EXP)'. The bonds' expected Recovery Ratings are
'RR4(EXP)'

The bonds of Series 01 and 02 have a maturity of three years,
nominal values of RUB1 billion and RUB2 billion, respectively,
and semi-annual coupons.

BystroBank has a Long-term Issuer Default Rating (IDR) of 'B-',
Short-term IDR of 'B', local currency Long-term IDR of 'B-',
Viability Rating of 'b-', Support Rating of '5', Support Rating
Floor of 'NF' and National Rating of 'BB-(rus)'. The Outlooks on
the IDR and National Rating are Stable.

BystroBank is a small Russian bank operating mostly in Udmurtia
and the surrounding regions. The bank is funded by corporate and
retail customer accounts and focuses on retail lending.
BystroBank is owned by former shareholders of OJSC Orgresbank
(now OJSC Nordea Bank, rated 'BBB+'/Stable).



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


ABS SANTANDER: S&P Retains 'D' Rating on Class D Notes
------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its 'AA- (sf)' credit rating on Fondo de Titulizacion de Activos
Santander Consumer Spain Auto 07-1's class A notes for
counterparty risk reasons.  S&P's ratings on the other classes of
notes in this transaction are unaffected by the rating action.

On Oct. 15, 2012, S&P lowered its long-term issuer credit rating
(ICR) on Banco Santander S.A. (BBB/Negative/A-2) following S&P's
Oct. 10 lowering of its sovereign ratings on the Kingdom of
Spain.

Banco Santander is the swap provider for Santander Consumer Spain
Auto 07-1.  Under the swap documents in Santander Consumer Spain
Auto 07-1, Banco Santander is no longer an eligible swap
counterparty to provide support at the current rating level of
the class A notes.  Following the October downgrade, the 60-day
remedy period began for the swap provider to take remedy action.

The 60-day remedy period has now elapsed and Banco Santander, as
swap provider, has not taken remedy action.  In accordance with
S&P's 2012 counterparty criteria and pending further analysis,
S&P has placed on CreditWatch negative its 'AA- (sf)' rating on
the class A notes.

S&P will conduct further analysis without giving benefit to the
swap to determine what its ratings on the class A notes would be,
and if these notes could achieve a rating higher than the ICR of
the swap provider without that benefit.  This analysis could have
a negative effect on S&P's rating on the class A notes.  S&P will
also consider any replacement and potential documentation
amendments in its analysis.

Santander Consumer Spain Auto 07-1 securitizes a portfolio of
Spanish auto loans originated by Santander Consumer E.F.C., which
it granted to Spanish individuals and enterprises for buying new
and used cars.  Santander Consumer Spain Auto 07-1 closed in May
2007.

           STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class               Rating
           To                      From

Fondo De Titulizacion De Activos Santander Consumer Spain Auto
07-1 EUR2.04 Billion Floating-Rate Notes

Rating Placed On CreditWatch Negative

A          AA- (sf)/Watch Neg      AA- (sf)

Ratings Unaffected

B          BB+ (sf)
C          B- (sf)
D          D (sf)


ABS SANTANDER: S&P Retains 'D' Ratings on Two Note Classes
----------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch negative
its credit ratings on Fondo de Titulizacion de Activos Santander
Financiacion 1's class A and B notes for counterparty risk
reasons.  S&P's ratings on the other classes of notes in this
transaction are unaffected by the rating action.

On Oct. 15, 2012, S&P lowered its long-term issuer credit rating
(ICR) on Banco Santander S.A. (BBB/Negative/A-2) following S&P's
Oct. 10 lowering of its sovereign ratings on the Kingdom of
Spain.

Banco Santander is the swap provider for Santander Financiacion
1. Under the swap documents in Santander Financiacion 1, Banco
Santander is no longer an eligible swap counterparty to provide
support at the current rating levels of the class A and B notes.
Following the October downgrade, the 60-day remedy period began
for the swap provider to take remedy action.

The 60-day remedy period has now elapsed and Banco Santander, as
swap provider, has not taken remedy action.  In accordance with
S&P's 2012 counterparty criteria and pending further analysis,
S&P has placed on CreditWatch negative its ratings on the class A
and B notes.

S&P will conduct further analysis without giving benefit to the
swap to determine what its ratings on the class A and B notes
would be, and if these notes could achieve a rating higher than
the ICR of the swap provider without that benefit.  This analysis
could have a negative effect on S&P's ratings on the class A and
B notes.  S&P will also consider any replacement and potential
documentation amendments in its analysis.

Santander Financiacion 1, which closed in December 2006, is
backed by a portfolio of Spanish consumer loans originated by
Banco Santander.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class               Rating
           To                      From

Fondo de Titulizacion de Activos Santander Financiacion 1
EUR1.914 Billion Asset-Backed Floating-Rate Notes

Ratings Placed On CreditWatch Negative

A          AA- (sf)/Watch Neg      AA- (sf)
B          A+ (sf)/Watch Neg       A+ (sf)

Ratings Unaffected

C          BB- (sf)
D          CCC- (sf)
E          D (sf)
F          D (sf)



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


NORTHLAND RESOURCES: Moody's Cuts Corp. Family Rating to 'Caa3'
---------------------------------------------------------------
Moody's Investors Service downgraded the probability of default
rating of Northland Resources AB to Ca-PD from Caa3-PD and its
corporate family rating to Caa3 from Caa2. The rating assigned to
the equivalent of US$350 million of senior secured notes was also
downgraded to Caa3 (LGD3, 36%). The negative rating outlook was
affirmed.

Ratings Rationale

The action reflects the recent announcement by Northland that it
has filed for reconstruction with the Lulea District Court in
Sweden due to the company's very limited liquidity. The
reconstruction filing grants a stay on debt and gives Northland
time to seek additional funding and a longer-term solution to its
tight liquidity. As a short-term measure, Northland is seeking
US$12 million of bridge funding from noteholders and suppliers,
which if granted will enable it to operate until March 4, 2013.

The Ca-PD rating reflects a very high likelihood of default given
the considerable challenges facing Northland as it works to
arrange long-term funding, which is needed to complete the plant
and port construction for the Kaunisvaara project and ramp up
production.

The Caa3 CFR reflects Moody's opinion that the issuer may be
unable to operate as a going concern in the near term, absent an
urgent equity infusion or other supplemental liquidity. The
higher CFR compared to the PDR reflects Moody's expectations on
creditors' better-than-average recovery prospects in the event of
a default (an estimate of 60-70%). This viewpoint reflects the
substantial amount of equity already invested in the project, as
well as a comprehensive guarantee and security package for the
notes, which are supported by guarantees from all material
subsidiaries and first ranking security over the shares,
corporate and real estate assets of the group, as well as the
bond escrow account where nearly $70 million of restricted cash
is still held for debt service obligations under the notes
indenture. The escrow account represents nearly 20% cash
collateral, which supports Moody's view on the noteholders'
recovery prospects in a liquidation scenario.

Outlook

The negative outlook on the ratings reflects Moody's view that
considerable challenges and uncertainties lie ahead for Northland
as it moves to arrange new financial resources under difficult
conditions.

What Can Change The Rating Up/Down

Given Northland's near-term liquidity shortages and the negative
outlook on the ratings, Moody's considers that there is currently
limited potential for any upward ratings pressure. However, if a
solution is found to address the long-term liquidity requirements
for the Kaunisvaara project, the outlook could be stabilized,
while further positive pressure might develop over time as the
project gets fully funded, achieves further development
milestones and starts to generate positive free cash flow.

Conversely, negative pressure on the ratings would result from an
inability to secure additional liquidity in the very near term,
which then would make an acceleration of its main debt
obligations very highly likely.

Northland AB, a subsidiary of publicly-listed Northland Resources
SA, is a special purpose vehicle created to manage the
construction and development of the Kaunisvaara iron ore project
in Northern Sweden. The Kaunisvaara project comprises the Tapuli
mine, the nearby Sahavaara mine, a dual-line processing plant and
a fully-integrated logistics solution for the delivery of iron
ore concentrate to the Port of Narvik in Norway. The Tapuli mine
has produced first ore shipments in January 2013, while the
Sahavaara mine is expected to enter production in 2016, subject
to grant of an environmental permit still awaited from the
Swedish authorities. Once fully operational, the whole
Kaunisvaara project is expected to produce 4.4 million dry metric
tonnes of high grade iron ore concentrate per annum.

The principal methodology used in this rating was the Global
Mining Industry published in May 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.



=====================
S W I T Z E R L A N D
=====================


* SWITZERLAND: Fitch Retains Stable Outlook on Insurance Sector
---------------------------------------------------------------
Fitch Ratings says in a new report that its rating outlook for
the Swiss insurance sector remains stable. The agency considers
the Swiss primary insurance industry is well prepared to meet the
challenges facing it.

The Swiss life insurance market is threatened by the low interest
rates persisting in Switzerland, in combination with the high
proportion of sales represented by guaranteed products.
Nevertheless, these threats are outweighed by the stability of
the economy in Switzerland, the high predictability of financial
and economic developments, and the fact that for group life
business, guarantees are adjusted on a regular basis.

"The non-life sector in Switzerland remains highly profitable,
particularly on the technical side, and constitutes the backbone
of the earnings stability of the Swiss primary insurance
industry," says Stephan Kalb, Senior Director in Fitch's
insurance team. "Market participants are highly disciplined and
are successfully compensating for current low investment yields
by focusing on their underwriting performance. Fitch expects the
non-life sector to maintain its high level of profitability in
2013."

Competition in the Swiss insurance industry remains high, as
Switzerland is a mature market with significantly higher
insurance penetration than most other European countries.
Potential for top-line growth is therefore limited.

The key triggers that could result in a negative rating outlook
are a worsening in the eurozone crisis or weakening in
underwriting discipline of market participants. The stable rating
outlook assumes low economic growth in Switzerland for 2013 and
2014.

Fitch does not expect factors that could lead to a significant
number of upgrades to emerge over the next 12-18 months. The
biggest constraint remains the challenges regarding achievable
investment returns in Switzerland, which are unlikely to
disappear in the short term.



===========
T U R K E Y
===========


MANGO GIDA: Obtains Bankruptcy Protection
-----------------------------------------
Aydan Eksin at Bloomberg News reports that Mango Gida obtained
bankruptcy protection from the court.

Bloomberg relates that Mango Gida said in statement to Istanbul
Stock Exchange on Wednesday debt enforcement proceedings against
the company will be stopped.  Bloomberg notes that the company
said facilities and equipment can't be turned over to third-
parties as part of such procedures under court ruling.

The company said it will be able to continue activities without
any legal hurdles, Bloomberg discloses.

                           Stake Sale

In a report on Feb. 6, Bloomberg News' Taylan Bilgic disclosed
that the owners and managers of Mango Gida sold more than a third
of the company's shares in the months before announcing creditor
demands that sent the stock tumbling.

Chairman Ayhan Karak and Vice Chairman Mehmet Yayla sold 13.3
million shares since Oct. 1, or 34% of the company's equity,
according to data compiled by Bloomberg on insider and major
shareholder transactions.  That included 3.5 million shares they
divested on Jan. 28, two days before the company said in a
statement to the Istanbul Stock Exchange that it was facing
creditor demands against its assets, sending the stock plunging
47% since, Bloomberg notes.

Mango Gida said in announcements to the stock exchange on Jan. 30
it was seeking to sell assets, meet potential buyers, cut its
workforce and stop packaging activities after creditors sent the
company seizure and payment orders totaling TRY38.3 million,
Bloomberg recounts.

Mr. Karak, as cited by Bloomberg, said that the two partners are
owed about TRY7 million to TRY8 million by the company, making
them effectively "creditors".

Mango Gida Sanayi & Ticaret AS is a Turkish food processor.



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


2E2 ISLE OF MAN: Appoints PwC as Liquidators
--------------------------------------------
isleofman.com reports that 2e2 Isle of Man has gone into
liquidation, weeks after its UK parent company hit trouble.

2e2 Isle of Man, based in Premier House in Tromode, has appointed
Gordon Wilson of PriceWaterHouseCoopers as liquidator, the report
says.

2e2 in the UK went into liquidation late last month but it was
hoped the Manx business could continue trading, isleofman.com
relates.

As reported in the Troubled Company Reporter-Europe on Feb. 8,
2013, The Financial Times said 2e2's lenders forced the heavily
indebted IT group into administration at the end of January.  2e2
owed GBP154.4 million to creditors at the end of 2011 -- the
latest accounts available, the FT said.  Interest payments of
GBP20.8 million forced the group into a GBP7.3 million pre-tax
loss in that year on revenues of more than GBP400 million, the FT
disclosed.  FTI Consulting, acting as administrators, laid off
627 people on Feb. 6.  2e2's international businesses were not
included in the administration, the FT noted.

2e2 is a Newbury-based IT services group.


ARQIVA BROADCAST: Moody's Rates New High-Yield Bonds '(P)B3'
------------------------------------------------------------
Moody's Investors Service assigned a provisional (P)B3 rating to
GBP notes due 2020 and the USD notes due 2020 to be issued by
Arqiva Broadcast Finance Plc and unconditionally and irrevocably
guaranteed by its sister company Arqiva Financing No 2 Limited
and its parent company Arqiva Broadcast Parent Limited. The Notes
have a loss given default (LGD) assessment of LGD6 (93%),
reflecting their deep subordination to approximately GBP2.3
billion of senior debt to be raised within a ring-fenced
financing structure around Arqiva Financing No 1 Limited, a
subsidiary of Arqiva Financing No 2.

Concurrently, Moody's has assigned a provisional (P)B1 Corporate
Family Rating to Arqiva Broadcast Parent Limited. The outlook on
all ratings is stable.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
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 (P)B3 rating of the Notes reflects:

- the medium business risk profile of the Arqiva group as a
   primary UK broadcasting and wireless communications
   infrastructure services provider;

- forecast gearing of around 7.0x of Consolidated Net Debt to
   EBITDA with up to 7.5x allowed before a dividend lock-up is
   triggered;

- financial covenants and other structural features embedded in
   the ring-fenced financing around Arqiva Financing No 1, which
   restricts the ability of this sub-group to upstream cash to
   Arqiva Financing No 2 and, therefore, its ability to service
   the intercompany loans on which Arqiva Broadcast Finance
   relies to pay debt service under the Notes; and

- the terms and conditions of the Notes issued by Arqiva
   Broadcast Finance.

The (P)B1 CFR assigned to Arqiva Broadcast Parent reflects the
medium business risk profile of the Arqiva group and takes into
account its very high consolidated leverage.

The medium business risk profile is underpinned by relatively
stable and predictable cash flows from the monopoly terrestrial
broadcasting services that Arqiva provides under long-term
contracts, and which Moody's estimates to contribute around 40%
of the group's EBITDA, but which may reduce over time as other
activities such as mobile site sharing grow. The Arqiva group
operates mobile site-sharing towers, where it benefits from a
strong market position in an environment that provides limited
opportunities for new competitors to enter the market, and a
strong customer relationship with high barriers to exit.

Taken together, the broadcasting and wireless tower operations
contribute around two-thirds of the Arqiva group's EBITDA.
However, the strength of its tower operations is somewhat offset
by its satellite operations, which Moody's estimates currently
account for (and expect to continue to account for) slightly more
than 10% of EBITDA. The satellite activities are subject to
significant competitive pressures and lower margins than the
group's tower activities. The Arqiva group also operates digital
broadcasting platforms (leasing spectrum capacity to digital
terrestrial broadcasters), which complement its terrestrial
broadcasting services and are a driver of management's revenue
growth initiatives. However, the future growth of its digital
capacity has been negatively affected by the deferral of the 600
megahertz spectrum auction, which was previously expected to take
place by December 2012.

Certain terms of the financing arrangements at Arqiva Financing
No 1 might be considered of some benefit to holders of the Notes
issued by Arqiva Broadcast Finance as, for example, they restrict
the Arqiva group's ability to engage in activities outside of its
core business. However, the occurrence of a trigger event or
distribution lock-up would deprive Arqiva Broadcast Finance of
the revenue on which it would be reliant for its debt service. In
terms of leverage, there is an additional covenant included in
the terms of the Notes, which would restrict distributions from
Arqiva Financing No 2 before the Senior Net Debt/EBITDA trigger
level ratio is breached, providing some protection. However,
there is no dividend cover covenant that would restrict the
ability of Arqiva Financing No 2 to pay dividends if there was a
cash shortfall, arising from either weakness within the
operational business or other lock-up event at Arqiva Financing
No 1.

Moody's also notes that part of the senior debt at Arqiva
Financing No 1 will start amortizing in 2018 and some of this
senior bank debt includes terms that will trigger an automatic
cash sweep if these facilities remain outstanding after their
expected maturity dates. If such a cash sweep provision is
triggered, Arqiva Financing No 2 will not receive any
distributions from Arqiva Financing No 1.

The provisional (P)B3 rating for the Notes issued by Arqiva
Broadcast Finance and guaranteed by Arqiva Financing No 2, which
is two notches lower than the (P)B1 CFR, takes into account the
deeply subordinated nature of the Notes. This subordination may
result in very high loss severity in the event of default,
particularly in circumstances where any or all of the financings
with higher priority ranking have also defaulted. The LGD6 (93%)
assumption reflects the debt burden of the wider Arqiva Broadcast
Parent group, which includes approximately GBP2.3 billion of
senior secured debt ranking ahead of the Notes.

Rating Outlook

The stable outlook on the ratings reflects Moody's view that the
financing structure of the Arqiva group is reasonably resilient
to downside sensitivities, given the high visibility of its long-
term contracted cash flows.

What Could Change The Rating Up/Down

Given the group's high leverage and Moody's expectation that
there will be only limited de-leveraging over the life of the
Notes, there is little potential for an upgrade. However, the
ratings could come under downward pressure if there was (i) a
material and adverse change in the industry structure affecting
the viability of terrestrial broadcasting; (ii) the occurrence of
a trigger event or dividend lock-up at Arqiva Financing No 1 or
any other factors were to arise that could increase the
likelihood of such events occurring; and/or (iii) adverse funding
conditions which would make it difficult for the Arqiva group to
refinance maturing debt on reasonable terms. In particular,
Moody's will monitor the amortization profile of the Arqiva
Financing No 1 transaction and the risk of automatic cash sweeps
being triggered for certain senior debt, if not refinanced as
expected, which would increase the risk of cash not being
distributed to Arqiva Financing No 2.

The methodologies used in this rating were Global Communications
Infrastructure Rating Methodology published in June 2011, and
Loss Given Default for Speculative-Grade Non-Financial Companies
in the U.S., Canada and EMEA published in June 2009.

Arqiva Broadcast Finance provides senior secured funding to
Arqiva Financing No 2, an intermediate holding company in the
Arqiva Group of companies. The principal operating subsidiaries
of the group are held within Arqiva Financing No 1.

The Arqiva group owns and operates a portfolio of communications
infrastructure assets and provides television and radio
transmission services, tower sites rental to mobile network
operators, media services and radio communications in the UK and
satellite services in the UK, Europe and the US. In the financial
year ended June 30, 2012, the group delivered revenue of around
GBP832 million and operating profit (after exceptional items) of
GBP124 million.

The Arqiva group is wholly owned by Arqiva Broadcast Holdings
Limited which is itself owned by a consortium of seven
shareholder companies, the two largest being Canada Pension Plan
Investment Board (CPPIB) with a 48% holding and Macquarie
European Infrastructure Fund 2 (MEIF 2) with 25%. Various other
Macquarie-managed funds account for approximately 1.5%, Industry
Funds Management (IFM) holds around 15%, Health Super Investments
Pty Ltd around 5.4%, and Motor Trades Association of Australia
(MTAA) holds around 5.2%.


ARQIVA BROADCAST: Fitch Assigns 'B-' Rating to GBP600-Mil. Notes
----------------------------------------------------------------
Fitch Ratings has assigned Arqiva Financing plc's proposed Series
2013-1a and Series 2013-1b notes (whole business securitisation
(WBS) senior debt) and Arqiva Broadcast Finance plc's proposed
notes (high yield (HY) junior debt) expected ratings, as follows:

  Arqiva Financing plc's minimum GBP250m Series 2013-1a fixed-
  rate secured notes due 2035: 'BBB(EXP)'; Outlook Stable

  Arqiva Financing plc's minimum GBP250m Series 2013-1b fixed-
  rate secured notes due 2033: 'BBB(EXP)'; Outlook Stable

  Arqiva Broadcast Finance plc's GBP600m notes (HY) due 2020: 'B-
  (EXP)'; Outlook Stable

The transaction is the refinancing of senior and junior bank debt
issued by Arqiva Financing No.1 and No. 2 Limited through the
planned issuances of between GBP500 million and GBP750 million of
WBS notes, plus GBP1.59-1.84 billion of pari-passu FinCo term
loans (expected to be refinanced under the WBS program at a later
stage) with the aggregate senior debt not exceeding GBP2.34
billion, and GBP600 million of structurally subordinated HY
notes. Arqiva's operations consist of its ownership of regulated
UK's terrestrial TV & radio infrastructure, wireless towers and
satellite transmissions services.

Key Rating Drivers

The ratings reflect Arqiva's strong operating performance to date
(with EBITDA over the past three years growing at a compounded
annual growth rate (CAGR) of 9.5% with FY12 (financial year
ending June 2012) EBITDA reaching GBP402.6 million), relatively
stable revenues (secured by long term contracts with many
customers backed by strong credit profiles), and high barriers to
entry (with monopolistic positions in key telecom infrastructure
segments notably in UK DTT TV and radio broadcasting, all under
the regulation of UK-based Ofcom, and dominant position in the
independent wireless towers sector with 24% market share). The
transaction also benefits from strong structural features notably
for the senior debt issued, namely a solid security package, a
full suite of performance related cash lock-up triggers, and
untypical cash sweep mechanisms (not usually seen in UK WBS
transactions with the notable exception of CPUK Finance Ltd which
closed a year ago).

Part of Fitch's analysis has been to assess how quickly the
transaction's debt levels reduce to compensate for mid-to-long
term revenues risks. For example, such risks could arise from
potential funding issues (e.g. in DTT TV or radio) or threats
from alternative technology lowering the demand with stress
points at the contracts' renewal. Fitch's base case factors in
these risks assumes some stresses in satellite and radio revenues
growth in the medium term with low single digit growth, and
below-inflation increases in revenues for both the digital
platform and wireless towers divisions (with nominal stresses at
renewal of key contracts).

The leverage and prepayment speed brings some comfort as from a
day-one unaudited trailing-twelve-month (TTM) December 2012
EBITDA senior leverage of 5.7x (with EBITDA at GBP414.3 million),
the senior debt is paid back in full under Fitch's base case
(assuming no refinancing) by 2025 (with the exception of the
Series 2013-1b notes which has a fixed scheduled amortization to
2033). This rapid deleveraging is mainly driven by cash sweep
amortization. The junior debt's leverage is assumed to reduce
under Fitch's base case (assuming a generic refinancing scenario)
from over 7.1x to 6.1x in 2020 (at maturity of the HY notes)
mitigating its refinancing risk. However, the junior debt remains
deeply subordinated and exposed to dividends pay-out disruptions
from the WBS group, which could trigger their default hence their
assigned 'B' category rating.

Fitch's synthetic base case debt service coverage ratio for the
senior bonds is relatively high at 1.7x (for the next 15 years)
and 2.1x (until legal final maturity of the class B notes). These
higher levels are warranted given the higher (long term)
obsolescence risk of Arqiva's underlying technology compared to
other WBS transactions at the same rating level.

Rating Sensitivities

An unforeseen change in regulation (by Ofcom) notably with regard
to any changes in its pricing formulas (for DTT or radio
broadcasting), licensing costs (e.g. Administrative Incentive
Pricing (AIP)) or even spectrum allocations could hit Arqiva's
cash flow generation. In addition, the risk of alternative
technologies (such as IPTV) could threaten Arqiva's revenues
either through technology obsolescence risk or lower available
ad-pool for linear TV content providers. This risk is currently
mitigated by the potential fast deleveraging of the transaction
and by significant portion of revenues being secured by long term
contracts.


BEZIER: Puts Print Division in Administration, Jobs at Risk
-----------------------------------------------------------
The Drum reports that a number of staff at Bezier is set to be
made redundant as the UK based point-of-sale marketing services
business has decided to focus on its global brands division and
put the print division, headquartered in Wakefield, into
administration.

The Drum says that Deloitte has been appointed as administrator,
with Matthew Smith from the firm leading the decision making
process and the exact number of staff redundancies to be
announced in due course.

The decision follows a strategic review by the Board of Bezier
after the print business was hit by clients pulling back on print
budgets during the recession, the global brands division will be
unaffected by the change, according to The Drum.

The report relates that the closure comes almost five years after
Bezier decided to close Leeds-based advertising agency Poulters
after 40 years.


CBRIDGE LIMITED: Director Gets Five Year Ban For Tax-Dodging
-----------------------------------------------------------
The director of Cbridge Limited has been disqualified from acting
as a director for a period of five years for failing to pay tax.
The disqualification follows an investigation by The Insolvency
Service.

Petur Einarsson, 48, an Icelandic national, has given an
undertaking to the Secretary of State for Business, Innovation
and Skills that he will not act as a director of a limited
company from February 15, 2013 to 2018.

Cbridge Limited was registered in Central London but traded from
the director's home in Fulham, South West London. The company
provided financial consultancy services and brokered aircraft
sales. It went into voluntary liquidation in June 2010, owing
close to GBP200,000 in unpaid corporation tax to HM Revenue &
Customs (HMRC).

Over the two years prior to liquidation, Mr. Einarsson paid
himself more than GBP100,000 out of the company profits to fund
his own lifestyle but he made no attempt to pay the mounting
corporation taxes owed by the company.

When Cbridge finally collapsed in 2010, it owed GBP192,312 in
tax.

Commenting on the disqualifications, Mark Bruce, a Chief Examiner
at The Insolvency Service said:

"Directors who fail to pay taxes on the profits that their
companies make should not expect to get away with it,
particularly when the abuse is motivated by the need to maintain
their own lifestyle.

"This disqualification sends out a clear message; if you run a
business in a way that is detrimental to your customers or to
your creditors we will target you and remove you from the
business environment."

London-based Cbridge Limited provided financial consultancy
services to clients primarily in the aviation industry.


HEART OF MIDLOTHIAN: In Temporary Administration
------------------------------------------------
Brian Donnelly at The Herald reports that supporters and
politicians have demanded answers after Heart of Midlothian
Football Club owner Vladimir Romanov's company, Ukio Bankas, was
put into temporary administration.

The Edinburgh club moved to reassure supporters that the legal
act by the Bank of Lithuania will not affect the day-to-day
running of the club as it is owned by the sister company of Ukio
Bankas called Ukio Banko Investicine Grupe (UBIG), according to
The Herald.

However, the Herald relates that concerns have been raised over
the close association of UBIG and Mr. Romanov as Ukio Bankas was
suspended when it was ruled it had engaged in risky behavior and
no longer met finance requirements.

Mr. Romanov, who owns 64.9% of Ukio Bankas shares, is chairman of
the UBIG board and also reported to be at least part owner of
that company.

The stock exchange in Vilnius said it had suspended trading of
Ukio shares at the central bank's request, The Herald notes.

The Herald relays that Alex Mackie, chairman of the Foundation of
Hearts, which has a long-standing aim to buy the majority
shareholding in the Tynecastle club, said it was due to meet to
discuss its next steps as it weighs up a fresh offer following a
previous rejection.

Hearts fan Lord Foulkes and Edinburgh Labour MP Ian Murray called
for greater clarity over the future of the Scottish Premier
League club, almost one year to the day since Rangers went into
administration, The Herald discloses.

However, Steve Kilgour, secretary of the Federation of Hearts
Supporters' Clubs, is hopeful the problems being suffered by Ukio
Bankas will not trigger a domino effect in other parts of Mr.
Romanov's business empire, The Herald notes.

Last year, the report discloses that Hearts settled an issue with
Her Majesty Revenue and Custom by agreeing to pay GBP1.5 million
over three years.

Players had to voluntarily defer their wages for weeks, The
Herald says.

The club have also raised GBP1 million through a share issue
scheme, The Herald notes.

Some 4000 supporters signed up, but there remains a shortfall of
almost GBP800,000, the report adds.


KERLING: S&P Cuts Corp. Credit Rating to 'B-'; Outlook Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on U.K.-based polyvinyl chloride
(PVC) and caustic soda producer Kerling PLC to 'B-' from 'B'.
The outlook is negative.

At the same time, S&P lowered its issue rating on Kerling's
EUR40 million senior secured revolving credit facility (RCF) to
'B+' from 'BB-'.  The recovery rating on the RCF is unchanged at
'1', indicating S&P's expectation of very high (90%-100%)
recovery for creditors in the event of a payment default.

In addition, S&P lowered to 'B-' from 'B' its issue ratings on
Kerling's EUR785 million secured loan notes and EUR75 million
senior secured loan notes.  The recovery rating on both issues is
unchanged at '4', indicating S&P's expectation of average (30%-
50%) recovery prospects for creditors in the event of a payment
default, albeit at the low end of the range.

The downgrade reflects S&P's view that Kerling will post weak
financial results for 2012, leading to leverage that S&P views as
no longer commensurate with the rating.  The downgrade also
reflects S&P's view of the very weak conditions in the European
PVC industry in 2012 and 2013, and S&P's uncertainty as to the
timing and magnitude of recovery in Kerling's operating
performance and leverage metrics.

S&P has lowered its forecast of 2012 reported EBITDA to
EUR130 million-EUR140 million (before one-off items), and has
revised downward its assessment of Kerling's business risk
profile to "weak" from "fair."  Consequently, S&P now estimates
Kerling's leverage at year-end 2012 at a high 9.5x, taking into
account Standard & Poor's-adjusted debt of about EUR1.2 billion
(net reported financial debt should be approximately EUR0.9
billion).

S&P has also revised downward its assessment of Kerling's
liquidity to "less than adequate" from "adequate," reflecting the
company's reduced liquidity cushion, notably after a EUR40
million coupon payment in early February, and exacerbated by
S&P's belief that the EUR40 million RCF is unavailable.

Under S&P's updated base-case scenario, it believes that Kerling
could report EBITDA of about EUR170 million-EUR180 million in
2013.  S&P base its forecast on the likelihood, in its view, of a
protracted challenging macroeconomic climate in Europe.  This is
underpinned by S&P's expectation of 0% GDP growth in the eurozone
(European Economic and Monetary Union), and weak conditions in
the construction industry, Kerling's key end-market for PVC.

At the same time, S&P recognizes that management has initiated
timely and decisive actions, notably in the area of production
rationalization, which S&P believes should lead to a material
reduction in fixed costs.

There is a possibility of S&P lowering the rating if management's
actions are insufficient to counteract the difficult PVC industry
conditions and if 2013 EBITDA does not recover from the 2012
trough.  Negative free cash flow or pressure on the company's
available liquidity would also trigger a downgrade.

S&P could revise the outlook to stable if Kerling's liquidity
strengthens and its adjusted debt to EBITDA improves to about
5.5x-6.0x on ongoing basis.  In S&P's view, this could occur due
to a combination of meaningful and sustainable recovery in the
European PVC industry conditions, a leaner cost structure thanks
to successful implementation of management's restructuring plan,
and positive free operating cash flow generation.


PARFITTS BAKERY: Goes Into Liquidation
--------------------------------------
halifaxcourier.co.uk reports that Parfitts Bakery and
Confectioners has gone into liquidation.

Parfitts Bakery, which has a shop on Commercial Street, was
forced to close along with six others - including those in
Moldgreen, Holmfrth, Honley, Almondbury, Slaithwaite, and
Newsome, the report relates.

The company's bake house in Ruth Street, Newsome was also shut
down, the report says.

Established in 1970, the bakery which has had a presence in
Brighouse and Huddersfield for many years will see the loss of 63
jobs.

According to the report, liquidator Tony Denham of DL Partnership
make the announcement to staff, many of them aware of the tough
times the company was going through.

He said that the company is insolvent and a creditors' meeting is
expected to take place on February 25, the report adds.


PROMINENT CMBS: Fitch Cuts Ratings on Three Note Classes to 'D'
---------------------------------------------------------------
Fitch Ratings has downgraded Prominent CMBS Conduit No. 2 Ltd's
Class A, B, D, E and F notes and affirmed the Class C notes, as
follows:

  GBP310.7m Class A (XS0303848229) downgraded to 'Csf' from
  'Bsf'; Recovery Estimate (RE) RE90%

  GBP18.9m Class B (XS0303848815) downgraded to 'Csf' from
  'CCsf'; RE0%

  GBP18.9m Class C (XS0303849201) affirmed at 'Csf' RE0%

  GBP13.2m Class D (XS0303849896) downgraded to Dsf from 'Csf';
  RE0%

  GBP0m Class E (XS0303850555) downgraded to 'Dsf' from 'Csf';
  RE0%; rating withdrawn

  GBP0m Class F (XS0305344417) downgraded to 'Dsf' from 'Csf';
  RE0%; rating withdrawn

The downgrades of the Class A and B notes reflect the lower than
expected recoveries on the resolved Roade One loan and the
defaulted Cavendish and Ambassador loans. As no more Class E and
F notes remain outstanding following a GBP34.7 million loss
allocation from the Roade One workout, the tranches have been
downgraded to 'Dsf' and the ratings subsequently withdrawn as
they are no longer considered relevant by Fitch. The Class D
notes, which incurred a loss of GBP6.8 million or 34%, will
remain rated 'Dsf' until the expected Cavendish/ Ambassador
losses reduce its balance to zero.

Since the previous rating action in June 2012, the final
remaining assets securing the GBP51.3 million Cavendish loan have
been sold. The net sales proceeds total GBP41.9 million (pending
final confirmation), implying an imminent further loss allocation
of GBP9.4 million.

The Ambassador loan, of which GBP90.9 million has been
securitized, had 13 of its original 16 assets sold since early
2012, for GBP45.8 million (net off workout costs). The remaining
three assets, valued at GBP11.2 million in June 2011, are in
various stages of the marketing/sales process. However, the
ultimate recovery proceeds will be reduced by GBP18.2 million of
already crystallized swap breakage costs, resulting in expected
losses above GBP50 million. Therefore, a default for the entire
debt stack is inevitable.

The GBP98 million Lavancino and GBP121.6 million Colombina loans
continue to perform in line with expectations. Both loans
continue to amortize via scheduled installments and are expected
to remain current until their maturities in December 2013
(Lavancino) and April 2014 (Colombina). Neither loan agreement
contains a loan-to-value (LTV) covenant, so the collateral has
not been revalued since closing in July 2007. Fitch estimates the
effective senior leverage at 77% (Lavancino) and 91% (Colombina),
compared with the reported 58.3% and 62.3%.

Lavancino is secured on a mixed use property located in London's
West End. The weighted average lease term was reported at 13.3
years in January 2013. The main tenant, Primark, accounts for
approximately 55% of the income. Fitch expects the loan to repay
at its maturity (or soon thereafter) without a loss. An existing
swap will mature at the same time, removing the possibility of
termination and related fees.

Colombina is backed by Milbank Tower, a secondary office property
located in London's Victoria submarket. While the lease term is
at 3.8 years (as of January 2013) short, the property remains
virtually fully let, due to stable demand from occupiers and
comparatively moderate rental levels. The Colombina hedging will
mature three years after the loan. The effective increase in
leverage (due to swap breakage costs) suggests that the borrower
may experience difficulties repaying the senior loan in full at
maturity. In addition, there is a junior B-note outside the
securitization, also payable in April 2014.


REPUBLIC: In Administration; 2,500 Jobs at Risk
-----------------------------------------------
Reuters reports that Republic became the latest casualty of the
economic downturn on Wednesday, seeking protection from creditors
and putting around 2,500 jobs at risk.

The firm has appointed administrators Ernst & Young to sell the
business while it continues to trade, Reuters relates.

According to Reuters, Ernst & Young said the retailer had been
hit by poor autumn trading and a rapid decline in sales in late
January.  It has made 150 staff at Republic's head office
redundant, Reuters discloses.

Republic operates 121 stores across the UK with a stronger
presence in the north of the country.  It is owned by private
equity firm TPG.



===================
U Z B E K I S T A N
===================


CREDIT-STANDARD BANK: Moody's Lowers Deposit Ratings to 'Caa1'
--------------------------------------------------------------
Moody's Investors Service has downgraded the following ratings of
Credit-Standard Bank: standalone bank financial strength rating
to E from E+, and the long-term local- and foreign-currency
deposit ratings to Caa1 from B3. Concurrently, the short-term
local and foreign-currency ratings were affirmed at Not-Prime.

All of Credit-Standard Bank's long-term ratings carry a stable
outlook. The standalone E BFSR is now equivalent to a caa1
standalone credit assessment (previously b3).

Moody's rating action is largely based on Credit-Standard Bank's
unaudited financial statements for 2012, prepared under Uzbek
GAAP, as well as the bank's non-public management reports.

Ratings Rationale

The rating action follows the withdrawal of Credit-Standard
Bank's license for banking operations in foreign currency -- FX
license -- (which had been temporary suspended since January
2012), as announced on 27 December 2012 by the Central Bank of
Uzbekistan, due to breaches of the federal laws on FX operations.

The downgrade of Credit-Standard Bank's respective BFSR and
deposit ratings to E/Caa1 reflects material deterioration of the
bank's market franchise and profitability during 2012. The
downgrade also takes into account Moody's expectation that
following the withdrawal of the FX license, Credit-Standard Bank
has limited ability to recover business volumes and restore its
market position and income-generating capacity over the next 12-
18 months.

According to Moody's, the temporary suspension of Credit-Standard
Bank's FX license in January 2012 triggered a substantial outflow
of customer funds, resulting in a material contraction of the
bank's balance sheet. In 2012, the bank's total assets, customer
deposits and net loans decreased by 65%, 78% and 50%,
respectively, leading to material deterioration of the bank's
market franchise.

Moreover, a decline in interest-bearing assets and lower fees
generated from settlement services caused a significant decline
in Credit-Standard Bank's recurring revenues -- net interest
income declined by 33% in 2012, while non-interest income
decreased by more than 50% compared to 2011. The bank's return on
average assets was close to zero in 2012 compared to over 3%
reported at year-end 2011.

Although Credit-Standard Bank's funding profile has changed
dramatically following the severe deposit run in 1Q 2012, its
liquidity position remains currently adequate and is supported by
a high level of liquid assets, accounting for around 46% of total
assets, thereby providing sufficient coverage (around 160%) of
demand deposits.

In addition, Moody's expects Credit-Standard Bank's capital
buffer to remain high and sufficient to absorb expected credit
losses over the next 12-18 months. As a result of significant
contraction of risk-weighted assets, Credit-Standard Bank's
regulatory Tier 1 capital ratio increased to 72% as at YE2012
from 41% at YE2011.

What Could Move The Ratings Up/Down

Any upgrade of Credit-Standard Bank's ratings is unlikely in the
near term; however, the outlook could be changed to positive from
stable over the medium to long term if the bank regains its FX
license or demonstrates a sustainable trend of an improving
market position.

At the same time, negative pressure could be exerted on Credit-
Standard Bank's ratings due to any material adverse changes in
the bank's risk profile, or further pressure on its market
franchise due to failure to adjust its business strategy under
new circumstances.

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



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


* Moody's Sees Continuing Weak Performance of European CMBS
-----------------------------------------------------------
Over the next two years, loans backing commercial mortgage-backed
securities in Europe will perform poorly, says Moody's Investors
Service in a new Special Comment entitled "European CMBS: 2013
Central Scenarios", because of the prolonged financial stress in
the region and the continued euro area crisis, which is affecting
all areas of the commercial real estate (CRE) markets. The rating
agency bases its view on several assumptions, which are broadly
similar to those in its 2012 European CMBS central scenarios
update.

"Our updated central scenario assumptions are as follows:
refinancing prospects will remain tiered; lending will remain
subdued; fire sales will be avoided; investment will focus on
prime properties; prime property values will remain stable while
non-prime property values will fall; and real estate fundamentals
will weaken," says Oliver Moldenhauer, a Moody's Vice President
-- Senior Analyst and author of the report.

"Refinancing prospects among CRE loans maturing over the coming
years will differ significantly depending on the quality of the
underlying properties and the leverage of the loans. Only loans
that are moderately leveraged and secured by prime properties are
likely to be able to refinance," explains Mr. Moldenhauer.

Moody's also says that other factors, such as the avoidance of
asset fire-sales and an investment focus on prime properties will
also drive CRE loan performance.

CRE capital values will be stable for prime properties overall
but will continue to fall for non-prime properties due to lack of
investor demand, especially for low quality secondary and
tertiary assets. Servicers and balance-sheet lenders will likely
increase the number of loan enforcement actions and forced sales
of non-prime properties over the next years, which will bring
evidence of further capital value deterioration.

While rating volatility will remain high in 2013, ratings will
experience a downward trend over the coming years. Due to the
non-granular nature of CMBS loan pools, the outcome at loan
maturity (i.e., repayment or default) for a large loan in the
pool, especially combined with non-sequential allocation of
repayment proceeds, can change the rating of the notes.
Similarly, final recovery proceeds significantly below Moody's
expectations can lead to further downgrades.


* BOOK REVIEW: Legal Aspects of Health Care Reimbursement
---------------------------------------------------------
Authors:  Robert J. Buchanan, Ph.D., and James D. Minor, J.D.
Publisher: Beard Books
Softcover: 300 pages
List Price: $34.95
Review by Henry Berry

With Legal Aspects of Health Care Reimbursement, Buchanan, a
professor in the School of Public Health at Texas A&M, and Minor,
an attorney, have come up with an invaluable resource for lawyers
and anyone else seeking an introduction to the legal and social
issues related to Medicare and Medicaid.  The administrative
costs of Medicare and Medicaid reimbursement have been a heated
topic of debate among public officials and administrators of
provider healthcare organizations, especially health maintenance
organizations.  Although inflation and the use of costly medical
technology are key factors in the rise in Medicare and Medicaid
costs, some control can be gained through appropriate compliance,
using more efficient procedures and better detection of fraud.
This work is a major guide on how to go about doing this.
Though mostly a legal treatise, Legal Aspects of Health Care
Reimbursement, first published in 1985, also offers commentary
through legislative and regulatory analyses, thereby explaining
how healthcare reimbursement policies affect the solvency and
effectiveness of the Medicare and Medicaid programs.
In discussing how legislation and regulations affect the solvency
and effectiveness of government-provided healthcare, the authors
offer insight into the much-publicized and much-discussed issue
of runaway healthcare costs.  Buchanan and Minor do not deny that
healthcare costs are out of control and are onerous for the
government and ruinous for many individuals.  But healthcare
reimbursement policies are not the cause of this, the authors
argue.  To make their case, they explain how the laws and
regulations in different areas of the Medicare and Medicaid
programs create processes that are largely invisible to the
public, but make the programs difficult to manage financially.
The processes are not well thought out nor subject to much
quality control, with the result that fraud is chronic and
considerable.

The areas of Medicare covered in the book are inpatient hospital
reimbursement, long-term care, hospice care, and end-stage renal
disease.  The areas of Medicaid covered are inpatient hospital
and long-term care plus abortion and family planning services.
For each of these areas, the authors discuss the conditions for
receiving reimbursement, the legislation and regulations
regarding reimbursement, the procedures for being reimbursed, the
major areas of reimbursement (for example, capital-related costs,
dietetic services, rental expenses); and court cases, including
appeals.  Reimbursement practices of selected states are covered.
For each of the major areas of interest, the chapters are
organized in a manner that is similar to that found in reference
books and professional journals for attorneys and accountants.
Laws and regulations are summarized and occasionally quoted with
expert background and commentary supplied by the authors.  With
regard to court cases and rulings pertaining to Medicare and
Medicaid, passages from court papers are quoted, references to
legal records are supplied, and analysis is provided. Though the
text delves into legal issues, it is accessible to administrators
and other lay readers who have an interest in the subject matter.
Clear chapter and subchapter titles, a table of cases following
the text, and a detailed index enable readers to use this work as
a reference.

The value of this book is reflected in the authors' ability to
distill great amounts of data down to one readable text.  It
condenses libraries of government and legal documents into a
single work.  Answers to questions of fundamental importance to
healthcare providers -- those dealing with qualifications,
compliance, reimbursable costs, and appeals -- can be found in
one place. Timely reimbursement depends on proper application of
the rules, which is necessary for a provider's sound financial
standing. But the authors specify other reasons for writing this
book, to wit: "Providers should have a general knowledge of the
law and should not rely on manuals and regulations exclusively."
By summarizing, commenting on, and citing cases relating to
principal provisions of Medicare and Medicaid, the authors
accomplish this objective.

The authors also cover the topic of fraud with respect to both
Medicare and Medicaid, offering both a legal treatment and
commentary.  At the end of each chapter is a section titled
"Outlook," which contains a discussion of government studies,
changes in healthcare policy, or other developments that could
affect reimbursement.  Although this work was published over two
decades ago, much of this discussion is still relevant today.
Finally, the book is a call for change.  The authors remark in
their closing paragraph: "Given the increasing for-profit
orientation of the major segments of the health care industry,
proprietary providers should be particularly responsive to new
efficiency incentives" in reimbursement.  In relation to this,
"policymakers [should] develop reimbursement methods that will
encourage providers to become more efficient."

Robert J. Buchanan is currently a professor in the Department of
Health Policy and Management in the School of Rural Public Health
at the Texas A&M University System Health Sciences Center.  James
D. Minor, a former law professor at the University of
Mississippi, has his own law practice.


                            *********

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
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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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