TCREUR_Public/130315.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, March 15, 2013, Vol. 14, No. 53

                            Headlines



A U S T R I A

ELAN SPORTARTIKEL: Files for Receivership


A Z E R B A I J A N

UNIBANK: Fitch Affirms 'B' Long-Term Issuer Default Ratings
* CYPRUS: Russian Banks' Operations May Incur Moderate Losses


C Z E C H   R E P U B L I C

TATRA: Ostrava Launches Insolvency Proceedings


G E R M A N Y

FOUNDATION CMBS: Fitch Affirms 'BB' Rating on Class A Notes


I C E L A N D

* ICELAND: Kronur Creditors May Write Down Claims v. Lenders


I R E L A N D

ALLIED IRISH: To Release Annual Results on March 27
EXAMINER NEWSPAPER: Workers Urge Mgmt. to Revive Print Contract


I T A L Y

* CITY OF TARANTO: Fitch Affirms Long-Term FC/LC Ratings at 'RD'


N E T H E R L A N D S

KONINKLIJKE KPN: Moody's Assigns (P)Ba1 Rating to New Hybrid Debt
MESDAG BV: Moody's Lowers Rating on Class D Notes to 'C'
ROYAL KPN: Fitch Assigns 'BB' Rating to New Capital Securities
* NETHERLANDS: Moody's Changes Outlook on Dutch Banks to Negative


P O R T U G A L

* PORTUGAL: Moody's Notes Slight RMBS Performance Deterioration


R O M A N I A

OLTCHIM: Legal Administrators Recommend Privatization
ROMSTRADE: CITR Confirmed as Insolvency Administrator


R U S S I A

SISTEMA JSFC: Spectrum Bid Win Credit Positive, Says Moody's


S P A I N

MIVISA GROUP: S&P Assigns 'B+' Long-Term Corporate Credit Rating
VALENCIA FOOTBALL: Spanish Court Nullifies Bankia Loan Guarantee


T U R K E Y

SEKERBANK TAS: Moody's Affirms 'D' Bank Financial Strength Rating


U K R A I N E

DTEK FINANCE: Fitch Assigns 'B(EXP)' Rating to USD Senior Notes
* IVANO-FRANKIVSK: S&P Affirms 'B' Long-Term Issuer Credit Rating
* LVIV CITY: S&P Affirms 'CCC+' Issuer Rating; Outlook Positive


U N I T E D   K I N G D O M

ATTEYS SOLICITORS: May Go Into Administration, Notifies SRA
DIGITAL ANGEL: Sells Newly Formed Subsidiary for US$852,000
DONCASTERS GROUP: Moody's Assigns '(P)B3' Corp. Family Rating
DONCASTERS GROUP: S&P Assigns 'B' Corporate Credit Rating
HARLEY MEDICAL: Begbies Traynor to Probe Collapse

NEWCASTLE BUILDING: 2012 Results in Line With Fitch Expectations
OPAL GROUP: Administrator Appointed to 13 Subsidiaries
VISTEON: Swansea Factory Workers Urge Ford to Cover Losses
* UK: Insolvency Service Insolvent; Needs Cash Injection


X X X X X X X X

* Fitch Reports Net Negative Sovereign Rating Actions in 2012
* EUROPE: Prolonged Low Rates May Hit Life Insurers, Fitch Says
* Moody's Says MMF Changes Counteract Negative Yields
* BOOK REVIEW: Stephanie Wickouski's Bankruptcy Crimes


                            *********


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A U S T R I A
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ELAN SPORTARTIKEL: Files for Receivership
-----------------------------------------
STA reports that Elan Sportartikel filed for receivership on
Wednesday.

The company generated EUR11 million revenues in 2012, STA
discloses.

Elan Sportartikel is the Austrian subsidiary of sports equipment
maker Elan.  The company produces snowboards under other brand
names.  It employs 78 people.



===================
A Z E R B A I J A N
===================


UNIBANK: Fitch Affirms 'B' Long-Term Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed the Long-term foreign currency Issuer
Default Ratings (IDRs) of Azerbaijan-based Unibank's (UB) and
Demirbank's (DB) at 'B', and Atabank (AB) and AGBank (AGB) at 'B-
'. The Outlook on AGB has been revised to Negative. The Outlooks
on the other banks are Stable.

KEY RATING DRIVERS: IDRs AND VIABILITY RATINGS (VRs)

The affirmations reflect the currently stable macroeconomic
environment, as high oil prices support Azerbaijan's commodity-
driven economy, and the banks' largely stable credit metrics. The
spill-over effects of high oil prices on the non-oil economy have
provided some growth opportunities for the banks and also
supported the gradual resolution of post-crisis asset quality
problems. Liquidity across the sector has been stable,
underpinned by monetary expansion, which has supported deposit
growth. Wholesale funding of private banks is mainly sourced from
development institutions, remains limited in volume and
reasonably diversified by maturity.

Credit risks relate mainly to slowly-amortizing corporate loan
books, but asset quality metrics have been stable at UB, DB and
AB, and all three banks could fully reserve reported problem
assets without breaching minimum regulatory capital requirements.
AGB continued to report relatively weaker asset quality: non-
performing loans (NPLs) net of accrued interest ticked up to 15%
at end-2012 (from 12% at end-2011) and they could not have been
fully absorbed through available impairment reserves and capital.

All four banks face emerging capital constraints, resulting from
loan growth, weak profit generation (driven by margin compression
and limited operational scale) and limited new equity injections.
DB and UB appear better positioned to improve profitability by
expanding into higher-margin retail lending. However, fast retail
growth (20%-40% at both banks in 2012) entails significant credit
risks, although both banks have recently strengthened their risk
management capabilities. The success of the banks' retail
expansion strategies will depend on their ability to contain
credit losses and rising operating costs (the latter particularly
high at UB, with a cost/income ratio above 70% in 2012).

Capital constraints have become more acute for AGB and AB, which
need to increase their regulatory capital to the new minimum
requirement of AZN50 million by end-2013 from AZN43 million and
AZN35 million, respectively, at end-2012. Fitch understands that
both banks have preliminary agreements with their current
shareholders for capital injections during the year to address
these shortfalls, but these plans have yet to be implemented.

The Negative Outlook on AGB's IDRs reflects the ongoing weakening
of the bank's solvency due to operational losses, as measured on
a cash basis. AGB's pre-impairment result net of accrued but not
received income has been a negative 10% of starting equity during
2012. The build-up on the balance sheet of accrued interest mean
that at end-2012, together with the unreserved part of reported
NPLs, this was almost equal to the bank's regulatory capital. In
Fitch's opinion, the bank's dependence on regulatory forbearance
with respect to loan provisioning is increasing.

RATING SENSITIVITIES - IDRs and VRs

Upside potential for the four banks' ratings is currently
limited, primarily as a result of structural issues affecting the
operating environment (including high economic cyclicality, weak
institutional development, generally immature corporate
governance and political risks). Gradual improvements in the
operating environment, a strengthening of the banks' franchises
and an extended track record of sound performance could give rise
to upward rating pressure over time.

The banks' ratings could come under downward pressure if there
was a large and sustained drop in oil prices, although this
scenario is not expected in the near term. An intensification of
capital pressures as a result of fast growth and/or an increase
in impairment charges would also be credit negative, if not
offset by capital injections. Failure of either AB and AGB to
meet the new minimum regulatory capital requirement by end-2013
would also be credit negative, although by itself would be
unlikely to result in downgrades given potential regulatory
forbearance (at least in the short term) for banks with moderate
capital shortfalls.

AGB's ratings could be downgraded if pressure on the bank's
solvency increases further as a result of continued pre-
impairment cash-based losses and/or recognition of additional
loan problems. Conversely, Fitch could revise AGB's Outlook back
to Stable if capitalization strengthens as a result of equity
injections or improved performance and internal capital
generation.

KEY RATING DRIVERS AND RATING SENSITIVITIES - SUPPORT RATINGS
(SRs) and SUPPORT RATING FLOORS (SRFs)
The SRFs of 'No Floor' and '5' Support Ratings for each of the
banks reflect their relatively limited scale of operations, as a
result of which extraordinary support from the Azerbaijan
authorities cannot be relied upon, in Fitch's view. The potential
for support from private shareholders cannot be reliably
assessed. Fitch does not expect any revision of the banks' SRFs
or Support Ratings in the foreseeable future.

The rating actions are as follows:

Unibank
Long-term foreign currency IDR: affirmed at 'B', Outlook Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at No Floor

Demirbank
Long-term foreign currency IDR: affirmed at 'B', Outlook Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at No Floor

Atabank
Long-term foreign currency IDR: affirmed at 'B-', Outlook Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at No Floor

AGBank
Long-term foreign currency IDR: affirmed at 'B-', Outlook
  revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at No Floor


* CYPRUS: Russian Banks' Operations May Incur Moderate Losses
-------------------------------------------------------------
Russian banks' operations in Cyprus could incur moderate credit
losses if those banks have material exposures to Cypriot
companies of Russian origin or to Cypriot banks, says Moody's
Investors Service in a new Special Comment entitled "Russian
Banks: Cyprus-Related Risks Could Lead to Moderate Credit
Losses."

Moody's has identified three channels through which Russian banks
are exposed to Cyprus-related risks (1) loans to Cyprus-based
companies of Russian origin; (2) bank and corporate deposits and
investments in Cypriot banks; and (3) Russian subsidiaries of
Cypriot banks.

Moody's central scenario does not assume a Cypriot sovereign
default or moratorium on external payments in Cyprus this year.
However, as noted by Moody's in February 2013, there is an
elevated probability that the sheer size of Cyprus's anticipated
debt load will compel authorities to pursue every avenue for debt
reduction, including private sector losses on Cypriot debt. The
crystallization of these risks would be credit negative for
Russian banks that have linkages to Cyprus, although not likely
to be material enough to warrant rating actions, given the
relative size of these exposures.

"The main contagion channel for Russian banks is their loans to
Cyprus-based companies of Russian origin. We estimate that these
loans totaled around US$30-US40 billion at year-end 2012, or
around 15%-20% of Russian banks' capital base. A potential Cyprus
moratorium on external payments could block loan repayments to
Russia, leading to some asset-quality pressures," explains Eugene
Tarzimanov, a Moody's Vice President Senior Credit Officer and
author of the report.

The second channel through which Russian banks are exposed to
Cyprus-related risks is bank and corporate deposits and
investments in Cypriot banks. Moody's says that Russian banks had
around US$12 billion placed with Cypriot banks (predominantly
Russian bank subsidiaries in Cyprus) at year-end 2012, plus
around US$1 billion invested in the capital of their banking and
non-banking subsidiaries in Cyprus. While these investments are
mostly based on parent-subsidiary relationships, defaults by
endogenous Cypriot banks, a deposit freeze and/or a moratorium on
external payments, could lead to some losses for Russian banks.
There are also indirect risks for Russian banks related to
Russian corporate deposits at Cypriot banks. Moody's estimates
that non-resident Russian corporate deposits in Cyprus could
approach US$19 billion at September 1, 2012. In case of bank
defaults, deposit freeze or burden sharing with wholesale
depositors, these companies could take losses on their deposits
or lose the possibility to repatriate their funds. In turn, this
will decrease their capacity to service bank debt back in Russia.

The third transmission channel is Russian subsidiaries of Cypriot
banks. This is not as significant as the previous two as the
contagion risk affects just a few small Russian subsidiaries of
Cypriot banks. These subsidiaries could face heightened credit
risks, reputational damage and deposit outflows because of
concerns related to their parent banks' growing problems.



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C Z E C H   R E P U B L I C
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TATRA: Ostrava Launches Insolvency Proceedings
----------------------------------------------
CTK, citing the insolvency register, reports that the Regional
Court in Ostrava accepted the insolvency petition against Tatra,
filed by Severoceska sprava nemovitosti over an unpaid debt, and
launched insolvency proceedings against the company on Wednesday.

Severoceska sprava nemovitosti said Tatra owes it CZK227,232 in
unpaid transport fees, but Tatra rejected the allegation, saying
it had paid the debt before the insolvency petition was filed,
CTK relates.

Tatra was put under distraint, initiated by company Composite Com
to which it owes around CZK650 million, and it is to be offered
for sale in an auction today, CTK discloses.

Composite.com notes that the insolvency proceedings could
postpone the auction, CTK recounts.

According to CTK, Tatra's management said the insolvency
proceedings will not affect operation of the company.

Tatra is a Czech lorry maker.



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G E R M A N Y
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FOUNDATION CMBS: Fitch Affirms 'BB' Rating on Class A Notes
-----------------------------------------------------------
Fitch Ratings has affirmed Foundation CMBS Ltd.'s EUR236.4
million Class A commercial mortgage-backed floating-rate notes
due 2016 at 'BBsf', and revised the Outlook to Negative from
Stable.

Key Rating Drivers

The affirmation reflects the stable performance of the portfolio,
which has not seen any significant fluctuations in vacancy or
collateral income over the past three quarters. With four loans
falling due this year, five in 2014 and one overdue, the revision
of the Outlook to Negative reflects mounting refinancing risk,
especially for high loan-to-value (LTV) positions secured by
secondary German property that comprise a significant part of the
portfolio. While of higher quality, the two Swiss loans pose risk
because of currency hedges expiring with them.

The Foundation portfolio has a very high weighted average LTV of
102%, albeit based on a February 2011 revaluation. All ten loans
have LTVs over 85%, which makes it more difficult for borrowers
to refinance in the current lending environment. Fitch expects
workouts to ensue for several loans as they reach maturity,
particularly the German loans, which all report LTVs between 88%
and 137%.

For the five loans maturing next year, only two years will remain
until bond maturity in 2016 to work out any that fail to pay off,
narrowing the range of resolution options and potentially
hampering recovery prospects. Moreover, as the servicer has no
presence in Germany, this raises questions about how the recovery
process will be managed. The German loans are secured by a
mixture of office, retail, retail warehouse, light industrial and
multi-family housing properties.

The largest loan in the portfolio (Luna; 25% by balance) is
Swiss. It is secured by a single office building located in Berne
and let under a ten-year index-linked lease to a 'AAA' rated
tenant. The local property market has benefited from
Switzerland's insulation from eurozone financial weakness, which
enhances Luna's prospects of refinancing in October. The other
Swiss loan (Lausanne; 20%) should also benefit from this macro
position when it falls due next year.

For the Swiss loans, currency risk is heightened by 'safe haven'
flows into Switzerland since closing. While supportive of
refinancing, these flows have strengthened the franc against the
euro, as a result of which the issuer would have to sell a larger
sum of euros to procure a given sum of francs owed under the
swap. By crystallizing a senior-ranking terminal swap obligation,
a default of either loan could cause a note event of default,
although Fitch understands that the swap provider lacks the power
to trigger note enforcement.

Rating Sensitivities

Failure of Luna to repay in October 2013 would likely lead to a
downgrade given the related currency risk in the transaction.
Additionally, the inability to achieve recoveries in line with
current LTVs for German loans that go on to default would
increase the likelihood of a downgrade.



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I C E L A N D
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* ICELAND: Kronur Creditors May Write Down Claims v. Lenders
------------------------------------------------------------
According to Bloomberg News' Omar R. Valdimarsson, Morgunbladid,
citing central bank Governor Mar Gudmundsson, reports that kronur
creditors are expected to write down their claims against lenders
Kaupthing Bank hf, Glitnir Bank hf and Landsbanki Islands hf by
75%.

Bloomberg notes that Mr. Gudmundsson, as cited by Morgunbladid,
said that creditors only want the lenders' foreign assets.

Glitnir and Kaupthing have requested that they be granted
exemptions from Iceland's capital controls in order for them to
complete creditor settlements, Bloomberg discloses.  The central
bank has so far been unwilling to grant any exemptions, Bloomberg
states.



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I R E L A N D
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ALLIED IRISH: To Release Annual Results on March 27
---------------------------------------------------
Allied Irish Banks, p.l.c., will publish its 2012 annual results
at 07.00 GMT on Wednesday March 27, 2013.

                      About Allied Irish Banks

Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland.  It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin.  AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).

Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.

As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares.  On
April 8, 2011, the NPRFC converted the total outstanding amount
of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.

In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.

The Company reported a loss of EUR2.29 billion in 2011, a loss of
EUR10.16 billion in 2010, and a loss of EUR2.33 billion in 2009.

Allied Irish's consolidated statement of financial position for
the year ended Dec. 31, 2011, showed EUR136.65 billion in total
assets, EUR122.18 billion in total liabilities and EUR14.46
billion in shareholders' equity.

Allied Irish's balance sheet at June 30, 2012, showed EUR129.85
billion in total assets, EUR116.59 billion in total liabilities
and EUR13.26 billion in total shareholders' equity.


EXAMINER NEWSPAPER: Workers Urge Mgmt. to Revive Print Contract
---------------------------------------------------------------
Business World reports that over 50 workers at WebPrint in Cork
are calling on management at the Examiner and Evening Echo
newspapers to engage in talks about reviving the print contract
which the firm held for the past seven years.

The workers are being supported by the UNITE trade union of which
most of the 50 workers are members, Business World discloses.

When the Examiner went into and straight out of receivership last
week, WebPrint's contract was ended with no notice and workers
have been placed on short time from this week, Business World
relates.  Many now are in fear of losing their jobs, Business
World notes.

"The contract was torn up and the printing of the papers moved to
Dublin and the Irish Times," Business World quotes UNITE Regional
Officer, Brendan Byrne, as saying.  "The Examiner has a long
history and affinity to Cork and we are calling on management to
talk to WebPrint about how the contract can be reinstated, even
if at a reduced rate."

"Local representatives and local people should also lend their
weight to this campaign.  If 50 jobs are lost it will be a blow
to the whole Cork community and it can be avoided."



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I T A L Y
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* CITY OF TARANTO: Fitch Affirms Long-Term FC/LC Ratings at 'RD'
----------------------------------------------------------------
Fitch Ratings has downgraded Italian local and regional
governments and their debts and public sector entities (PSEs).
The Outlook on the Long-term ratings of most of the issuers is
Negative.

KEY RATING DRIVERS

The majority of ratings have been downgraded by one notch, in
parallel with the Italian sovereign whose Long-term Issuer
Default Rating (IDR) was downgraded to 'BBB+'/Negative from 'A-
'/Negative on March 8, 2013. The rating actions reflect the
application of the agency's "International Local and Regional
Governments Rating Criteria outside United States", dated 17
August 2012, according to which subnationals' ratings cannot
usually be higher than their sovereign.

Subnationals that meet the conditions for a rating above the
sovereign, as outlined in "Rating Subnationals above the
Sovereign -- outside the United States" dated May 2, 2012, have
also been downgraded. Four of them (the autonomous regions of
Valle d'Aosta and Friuli and the autonomous provinces of Bolzano
and Trento) have been downgraded by two notches, consistent with
the criteria according to which when the sovereign's rating falls
towards sub-investment grade, the uplift may be reduced from the
maximum of three notches to reflect the risk of intensification
of the level of macroeconomic stress that may weaken the degree
of intergovernmental predictability.

The ratings of these four issuers continue to be supported by
strong socio-economic indicators -- evidenced by GDP per capita
at about 125% of the EU average and employment and unemployment
rates around 70% and 5% (Italy 57% and 11%), respectively. These
features should continue to support the resilience of their
budgetary performance as the impact of the recession should be
milder than Italy, whose GDP contracted by 2.4% in 2012 and is
expected by Fitch to shrink by 1.8% in 2013 followed by a modest
0.6% growth in 2014.

The Region of Lazio has also been downgraded by two notches in
anticipation of an intensification of budgetary challenges over
the next one/two years compounding risks stemming from high
levels of debt and fund balance deficit. Prolonged economic
weakness may drag Lazio's operating performance in negative
territory from the 5% surplus anticipated by Fitch in September
2012. The Region of Piemonte has been downgraded to maintain the
one-notch difference with the sovereign to reflect weak debt
service culture following its decision to renege on swap
commitments (see 'Fitch Affirms Region of Piemonte at 'BBB+';
Outlook Negative' dated September 17, 2012).

The city of Naples has been downgraded by one notch in
anticipation of a material increase of debt. Within the framework
of a recovery plan, Naples may eventually be granted a state loan
up to EUR300 million to partly finance its fund balance deficit
as opposed to Fitch's previous expectations of a stock of bonds
and loans stabilizing at around EUR1.6 billion over the 2013-
2014. The ratings of the regions of Calabria and Sicily and the
Provinces of Pescara and Brescia have been affirmed as they
remain unaffected by the downgrade of the sovereign rating.
However, the Outlook on Brescia has been revised to Negative from
Stable.

The Province of Catania has been downgraded and placed on Rating
Watch Negative (RWN) and the City of Rome has been downgraded and
maintained on RWN. Fitch expects to resolve the RWN over the next
few months. For Catania, the review will focus on the region of
Sicily's proposal to abolish provinces in its territory, in which
case the rating of Catania's debt may be equalized with that of
the region if provincial liabilities are taken over by Sicily.
For Rome, the analysis will focus on the city's liquidity and
means to restore operating surplus following anticipated inaction
of the outgoing administration which faces election in May 2013.

The city of Taranto's ratings have been affirmed at 'RD' as the
issuer continues to service outstanding loans of about EUR50
million, while paying no interest or principal on the EUR250
million bond issued in 2004, EUR230 million of which is still
outstanding.

Eleven PSEs owned by Italy's sovereign or subnational governments
have been downgraded by one or two notches following the
application of the Agency's methodology "Rating of Public Sector
Entities - Outside the United States" dated March 4, 2013.
According to this, dependent entities are not usually rated above
the owner (sponsor) and non-dependent entities are rated
primarily in consideration of their standalone profile. The
ratings of Turin's social housing agency ATC and the water
company Acquedotto Pugliese are unaffected by the sovereign
downgrade and have been affirmed as their standalone performance
remains in line with Fitch's expectations. ASAM's rating has been
maintained at a one-notch difference with its sponsor, the
Province of Milan.

The credit export insurance company, Sace's 'A-' rating has been
placed on RWN. The review will focus on the expected evolution of
profitability, eventual changes in the capital structure and in
its governance following its acquisition by Cassa Depositi and
Prestiti from the Italian state in December 2012. Although its
rating is not constrained by Cassa Depositi and Prestiti or
Italy's sovereign rating, Sace's Long-term ratings, which
primarily reflect its standalone profile, are unlikely to exceed
a one-notch difference with Italy's sovereign rating. This is in
light of its exposure to sovereign risk via the concentration of
the securities portfolio and the ultimate guarantee on the
insurance portfolio.

RATING SENSITIVITIES

All ratings, except Taranto, remain sensitive to sovereign
downgrade (for more details on the sensitivities of the sovereign
rating, please see the rating action commentary from 8 March
2013). Ratings of local and regional governments and PSEs remain
sensitive to changes in their financial performance and support
from the national or local governments.

The rating actions are:

Autonomous Province of Bolzano
Long-term foreign and local currency ratings downgraded to 'A'
  from 'AA-'; Negative Outlook
Short-term rating downgraded to 'F1' from 'F1+'
Primary analyst: Danilo Quattromani
Secondary analyst: Raffaele Carnevale

Autonomous Region of Friuli Venezia Giulia
Long-term foreign and local currency ratings downgraded to 'A'
  from 'AA-'; Negative Outlook
Short-term rating downgraded to 'F1' from 'F1+'
Primary analyst: Raffaele Carnevale
Secondary analyst: Marco Bonsanto

Autonomous Province of Trento
Long-term foreign and local currency ratings downgraded to 'A'
  from 'AA-'; Negative Outlook
Short-term rating downgraded to 'F1' from 'F1+'
Primary analyst: Danilo Quattromani
Secondary analyst: Raffaele Carnevale

The Long-term local currency ratings of the following issues have
been downgraded to 'A-' from 'A+' as they are credit-linked to
the Province of Trento:

  University of Trento's EUR43.7m amortising fixed-rate notes due
  in 2015 (ISIN: IT0003976971)

Trentino Trasporti's EUR33.6m amortising fixed-rate notes due in
2014 (ISIN: IT0003794127)

Garda Trentino Fiere's EUR15m bullet fixed-rate notes (now
Patrimonio del Trentino) - due in 2016 (ISIN: IT0004051436)

Itea's EUR49.9m amortising fixed-rate notes due in 2015 (ISIN:
IT0003794572)

The following six issuers have also been downgraded by one or two
notches below the Province, their sponsor under the agency's
"Rating of Public Sector Entities - Outside the United States"
methodology:

Cassa del Trentino SpA

Long-term foreign and local currency ratings downgraded to 'A'
  from 'AA-'; Negative Outlook
Short-term rating downgraded to 'F1' from 'F1+'
Primary analyst: Danilo Quattromani
Secondary analyst: Sergio Ciaramella

Patrimonio del Trentino SpA

Long-term foreign and local currency ratings downgraded to 'A-'
  from 'A+', Negative Outlook
Short term rating downgraded to 'F2' from 'F1'
Primary analyst: Danilo Quattromani
Secondary analyst: Marco Bonsanto

Trentino Trasporti SpA

Long-term foreign and local currency ratings downgraded to 'A-'
  from 'A+', Negative Outlook
Short term rating downgraded to 'F2' from 'F1'
Primary analyst: Danilo Quattromani
Secondary analyst: Marco Bonsanto

ITEA (Istituto Trentino per l'Edilizia Abitativa) SpA

Long-term foreign and local currency ratings downgraded to 'A-'
  from 'A'; Negative Outlook
Short term rating downgraded to 'F2' from 'F1'
Primary analyst: Sergio Ciaramella
Secondary analyst: Raffaele Carnevale

University of Trento

Long-term foreign and local currency ratings downgraded to 'A-'
  from 'A'; Negative Outlook
Short term rating downgraded to 'F2' from 'F1'
Primary analyst: Sergio Ciaramella
Secondary analyst: Raffaele Carnevale

Trentino Sviluppo SpA

Long-term foreign and local currency ratings downgraded to 'A-'
  from 'A'; Negative Outlook
Short term rating downgraded to 'F2' from 'F1'
Primary analyst: Danilo Quattromani
Secondary analyst: Sergio Ciaramella

Autonomous Region of Valle d'Aosta

Long-term foreign and local currency ratings downgraded to 'A'
  from 'AA-'; Negative Outlook
Short-term rating downgraded to 'F1' from 'F1+'
Primary analyst: Raffaele Carnevale
Secondary analyst: Sergio Ciaramella

Autonomous Region of Sardinia
Long-term foreign and local currency ratings downgraded to 'A-'
  from 'A';Negative Outlook
Short-term rating downgraded to 'F2' from 'F1'
Primary analyst: Raffaele Carnevale
Secondary analyst: Sergio Ciaramella

Region of Calabria

Long-term foreign and local currency ratings affirmed at 'BBB+';
  Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Danilo Quattromani
Secondary analyst: Raffaele Carnevale

Region of Lazio

Long-term foreign and local currency ratings downgraded to 'BBB'
  from 'A-'; Negative Outlook
Short-term rating downgraded to 'F3' from 'F2'
Primary analyst: Raffaele Carnevale
Secondary analyst: Danilo Quattromani

Region of Lombardy

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Sergio Ciaramella
Secondary analyst: Raffaele Carnevale

Region of Veneto

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Raffaele Carnevale
Secondary analyst: Marco Bonsanto

Region of Piemonte

Long-term foreign and local currency ratings downgraded to 'BBB'
  from 'BBB+'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Raffaele Carnevale
Secondary analyst: Danilo Quattromani

Region of Sicily

Long-term foreign and local currency ratings affirmed at 'BBB';
  Negative Outlook
Short-term rating affirmed at 'F3'
Primary analyst: Raffaele Carnevale
Secondary analyst: Danilo Quattromani

Province of Bologna

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Danilo Quattromani
Secondary analyst: Sergio Ciaramella

Province of Brescia

Long-term foreign and local currency ratings affirmed at 'BBB+',
  Outlook revised to Negative from Stable
Short-term rating affirmed at 'F2'
Primary analyst: Sergio Ciaramella
Secondary analyst: Danilo Quattromani

Province of Catania

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-' and placed on RWN, Short-term rating of 'F2'
  placed on RWN
Primary analyst: Sergio Ciaramella
Secondary analyst: Raffaele Carnevale

Province of Florence

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Danilo Quattromani
Secondary analyst: Sergio Ciaramella

Province of Milan

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Danilo Quattromani
Secondary analyst: Raffaele Carnevale

Azienda Sviluppo Mobilita ed Ambiente SpA (ASAM)

Long-term foreign and local currency ratings downgraded to 'BBB'
  from 'BBB+'; Negative Outlook
Short-term rating downgraded to 'F3' from 'F2'
Primary analyst: Danilo Quattromani
Secondary analyst: Raffaele Carnevale

Province of Pescara

Long-term foreign and local currency ratings affirmed at '
  BBB+'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Danilo Quattromani
Secondary analyst: Sergio Ciaramella

Province of Rome

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Raffaele Carnevale
Secondary analyst: Sergio Ciaramella

Province of Venice

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Sergio Ciaramella
Secondary analyst: Raffaele Carnevale

City of Andora

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Sergio Ciaramella
Secondary analyst: Marco Bonsanto

City of Busto Arsizio

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Marco Bonsanto
Secondary analyst: Sergio Ciaramella

City of Milan

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Raffaele Carnevale
Secondary analyst: Danilo Quattromani

City of Monza

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Marco Bonsanto
Secondary analyst: Sergio Ciraramella

City of Pisa

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Danilo Quattromani
Secondary analyst: Marco Bonsanto

City of Rome

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; maintained on RWN
Short-term rating 'F2'maintained on RWN
Primary analyst: Danilo Quattromani
Secondary analyst: Raffaele Carnevale

City of Turin

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Raffaele Carnevale
Secondary analyst: Marco Bonsanto

City of Verona

Long-term foreign and local currency ratings downgraded to
  'BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Sergio Ciaramella
Secondary analyst: Danilo Quattromani

City of Naples

Long-term foreign and local currency ratings downgraded to
  'BBB- from 'BBB'; Negative Outlook
Short term rating affirmed at 'F3'
Primary analyst: Danilo Quattromani
Secondary analyst: Marco Bonsanto

City of Taranto

Long-term foreign and local currency and Short term ratings
  affirmed at 'RD'
Primary analyst: Raffaele Carnevale
Secondary analyst: Danilo Quattromani

Gestione Commissariale del Comune di Roma

Long-term foreign and local currency ratings downgraded to '
  BBB+' from 'A-'; Negative Outlook
Primary analyst: Sergio Ciaramella
Secondary analyst: Raffaele Carnevale

Sace SpA
Long-term foreign and local currency ratings 'A-' placed on RWN
Short-term Rating of 'F2' placed on RWN
Primary analyst: Raffaele Carnevale
Secondary analyst: Federico Faccio

Poste Italiane SpA

Long-term IDR and senior unsecured rating downgraded to 'BBB+'
  from 'A-'; Negative Outlook
Short-term IDR affirmed at 'F2'
Primary analyst: Danilo Quattromani
Secondary analyst: Raffaele Carnevale

Cassa Depositi and Prestiti

Long-term IDR and senior unsecured rating downgraded to 'BBB+'
  from 'A-'; Negative Outlook
Short-term IDR affirmed at 'F2'
Primary analyst: Raffaele Carnevale
Secondary analyst: Sergio Ciaramella

Politecnico di Torino

Long-term foreign and local currency ratings downgraded to '
  BBB+' from 'A-'; Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Sergio Ciaramella
Secondary analyst: Raffaele Carnevale

Agenzia Territoriale per la Casa della Provincia di Torino - ATC

Long-term foreign and local currency ratings affirmed at 'BBB+';
  Negative Outlook
Short-term rating affirmed at 'F2'
Primary analyst: Raffaele Carnevale
Secondary analyst: Sergio Ciaramella

Acquedotto Pugliese

Long-term IDR and senior unsecured rating affirmed at 'BBB-';
  Negative Outlook
Primary analyst: Danilo Quattromani
Secondary analyst: Marco Bonsanto

Umbria's bonds

Long-term local currency rating on the Region of Umbria's
EUR487.3m 4.86% amortising notes due 2018 (ISIN: XS0156017955)
  downgraded to 'BBB+' from 'A-' as they are credit-linked to the
  Italian sovereign
Primary analyst: Raffaele Carnevale
Secondary analyst: Sergio Ciaramella



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


KONINKLIJKE KPN: Moody's Assigns (P)Ba1 Rating to New Hybrid Debt
-----------------------------------------------------------------
Moody's Investors Service assigned a provisional (P)Ba1 long-term
rating to the proposed issuance of "US$ Capital Securities" (the
"hybrid debt") by Koninklijke KPN N.V. The outlook on the rating
is negative. The size and completion of the hybrid debt remain
subject to market conditions. All other ratings and outlook
remain unchanged.

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 hybrid debt. A definitive
rating may differ from a provisional rating.

Ratings Rationale:

The (P)Ba1 rating assigned to the hybrid debt is two notches
below the group's senior unsecured rating of Baa2. The two-notch
rating differential primarily reflects the deeply subordinated
nature of the hybrid debt, which is senior only to ordinary
shares and ranks pari passu with preference shares.

The hybrid debt has the following features: (1) these are 60-year
securities; (2) KPN has the option to defer coupons on a
cumulative basis and there are payment restrictions on parity
securities and ordinary shares; (3) there is no step-up prior to
year 10, with the first step-up being 25 basis points (bps) and
the second step-up taking effect 20 years after the first par
call date with an incremental 75 bps; and (4) there is a step-up
of 500 bps upon a change-of-control event and all senior debt
gets repaid first upon such event.

Moody's will treat the hybrid entirely as debt until shareholders
approve the EUR3 billion rights issue in the Annual General
Meeting of Shareholders (AGM) on April 10, 2013, since failure to
complete the rights issue would lead to a step-up of 500 bps,
which in Moody's view, represents a high incentive for KPN to
call this instrument. Moody's expectation is that shareholder
approval for the rights issue will be granted, since America
Movil, KPN's largest shareholder with a 29.8% equity stake, has
already backed the rights issue. Once approval for the rights
issue is granted, Moody's expects to assign some equity credit to
the hybrid debt.

KPN intends to use the net proceeds from the hybrid debt issuance
primarily to strengthen its capital structure by reducing net
indebtedness. The EUR3 billion rights issue and proposed issuance
of hybrid debt will allow KPN to reduce its leverage and improve
its liquidity profile. This is in the context of a challenging
operating environment in which KPN's performance will remain
weak, affected by regulation, fierce competition and the weak
macroeconomic environment.

The Baa2 senior unsecured rating is supported principally by
KPN's leading position in the Dutch market and the benefits
derived from its geographical diversification in Germany and
Belgium, where the group operates as a mobile-centric market
challenger. The rating also reflects KPN's expected solid
liquidity profile after the successful completion of its
announced rights issue and hybrid debt issuance.

These considerations are balanced by (1) KPN's relatively weak
metrics for the rating category, with net debt/EBITDA (as
adjusted by Moody's) trending towards 3.0x through the rating
horizon; (2) its track record of declining operating performance
and profit warnings; and (3) its lack of financial flexibility,
as it has run out of internal options to protect its financial
profile.

Rating Outlook

The negative outlook on the ratings reflects (1) Moody's
expectation that KPN's credit metrics will be weakly positioned
for the Baa2 rating for a sustained period; (2) the current lack
of visibility due to the rapid deterioration in the group's
operating performance; and (3) the execution risk embedded in the
group's business plan. The rating assumes that the EUR3 billion
rights issue and proposed hybrid debt offering will be
successfully completed. Failure to execute the capital raising as
planned would lead to downward pressure on the rating.

What Could Change The Rating Up/Down

As the hybrid rating is positioned relative to another rating of
KPN, either (1) a change in the senior unsecured rating of KPN or
(2) a re-evaluation of its relative notching could have an impact
on the hybrid rating.

Given the negative rating outlook, Moody's does not currently
anticipate upward rating pressure on KPN's senior unsecured
rating. However, the outlook could revert back to stable if KPN
is able to stabilize its operating performance in the Dutch
market and successfully implement its strategy in Germany and
Belgium, while maintaining a net adjusted debt/EBITDA ratio (as
adjusted by Moody's) sustainably below 3.0x and retained cash
flow(RCF)/net adjusted debt in the 20%-25% range.

Conversely, downward pressure on the rating could result from any
deterioration in KPN's operating performance beyond Moody's
expectations for 2013. Specifically, the rating could come under
negative pressure if the company's credit protection measures
weaken, such that its RCF/net adjusted debt drops below 20% and
its net adjusted debt/EBITDA (as adjusted by Moody's) does not
trend towards 3.0x. Moody's anticipates a one-off deterioration
in KPN's metrics in 2014 following the consolidation of
Reggefiber, but also expects leverage ratios to improve
thereafter.

Principal Methodologies

The principal methodology used in this rating was the Global
Telecommunications Industry published in December 2010 and
Updated Summary Guidance for Notching Bonds, Preferred Stocks and
Hybrid Securities of Corporate Issuers published in February
2007.

Koninklijke KPN N.V. is the leading integrated provider of
telecommunication services in the Netherlands. KPN also provides
mobile telephony services in Germany and Belgium through its
subsidiaries e-plus and BASE. In 2012, the company generated
revenues of EUR12.7 billion and EBITDA of EUR4.5 billion.


MESDAG BV: Moody's Lowers Rating on Class D Notes to 'C'
--------------------------------------------------------
Moody's Investors Service has taken rating actions on the
following classes of notes issued by MESDAG (Charlie) B.V.

Class A Notes, Affirmed Aa3 (sf); previously on Jun 1, 2011
Downgraded to Aa3 (sf)

Class B Notes, Affirmed Baa2 (sf); previously on Jun 1, 2011
Downgraded to Baa2 (sf)

Class C Notes, Downgraded to Ca (sf); previously on Jun 1, 2011
Downgraded to B3 (sf)

Class D Notes, Downgraded to C (sf); previously on Jun 1, 2011
Downgraded to Caa3 (sf)

Moody's does not rate the Class E and the Class X Notes.

Ratings Rationale:

The downgrade action reflects Moody's increased loss expectation
for the pool since its last review. This is primarily due to the
poor collateral performance relating to the two Dutch Office
loans totaling EUR 56.7 million (25% of the current pool)
currently in Special Servicing. The property portfolios are
marked by 1) short remaining lease terms (averaging just over 3
years), 2) high vacancy levels in four of the eight properties
(average of 46%), 3) older properties that will require
significant capex in some cases, and 4) secondary locations in
the generally oversupplied Dutch office market.

The downgrade of the Classes C and D is the result of the
increased uncertainty around the values of the mostly secondary
properties securing the two defaulted Dutch Office loans and the
workout strategies of the special servicer which will mainly
impact the final recoveries for the Noteholders. The Classes A
and B are affirmed because they benefit from the sequential
waterfall and their respective credit enhancement levels of 40%
and 20% are sufficient to maintain the current rating levels
despite the increase in pool loss expectation.

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

Based on Moody's revised assessment of these parameters, the loss
expectation for the pool has increased compared with its prior
review in May 2012. Moody's current whole loan-to-value (LTV) is
202% for Dutch Office Loan I and 178% for Dutch Office Loan II.
The ratings are particularly sensitive to the recovery
assumptions for those two loans, which are influenced by the
performance of the underlying secondary properties and the work-
out strategy of the special servicer. Based on its current value
assessment, Moody's expects a significant amount of losses from
these two loans ranging between 50% - 75%.

In general, Moody's analysis reflects a forward-looking view of
the likely range of commercial real estate collateral performance
over the medium term. From time to time, Moody's may, if
warranted, change these expectations. Performance that falls
outside an acceptable range of the key parameters such as
property value or loan refinancing probability for instance, may
indicate that the collateral's credit quality is stronger or
weaker than Moody's had anticipated when the related securities
ratings were issued. Even so, a deviation from the expected range
will not necessarily result in a rating action nor does
performance within expectations preclude such actions. There may
be mitigating or offsetting factors to an improvement or decline
in collateral performance, such as increased subordination levels
due to amortization and loan re- prepayments or a decline in
subordination due to realized losses.

The primary sources of assumption uncertainty are the current
stressed macro-economic environment and continued weakness in the
occupational and lending markets. Moody's anticipates (i) lending
will remain constrained over the next years, while subject to
strict underwriting criteria and heavily dependent on the
underlying property quality, (ii) strong differentiation between
prime and secondary properties, with further value declines
expected for non-prime properties, and (iii) occupational markets
will remain under pressure in the short term and will only slowly
recover in the medium term in line with anticipated economic
recovery. Overall, Moody's central global macroeconomic scenario
for the world's largest economies is for only a gradual
strengthening in growth over the coming two years. Fiscal
consolidation and volatility in financial markets will continue
to weigh on business and consumer confidence, while heightened
uncertainty hampers spending, hiring and investment decisions. In
2013, Moody's expects no growth in the Euro area and only slow
growth in the UK.

Moody's Portfolio Analysis

As for the January 2013 investor reporting, the transaction's
total pool balance was EUR262 million (excluding principal loss
allocation) down by approx. 47% since closing due to scheduled
amortization, the prepayment of the NRW loan, the discounted pay
off of the Schiphol loan and the repayment of the Tor Loan. All
interest and principal proceeds are now applied sequentially to
the classes of Notes since the transfer to special servicing of
the TOR and Schiphol loans in November 2010, which constituted a
Sequential Prepayment Trigger Event. The six remaining loans are
secured by first-ranking legal mortgages over 45 commercial and
residential properties located in Germany (74% of current pool
balance) and The Netherlands (26%). The pool's property type
composition is mainly residential (69%), office (27%), with the
remainder a mixed use component of residential and office use.

Following the distressed sale of the Tor loan, principal losses
were allocated at the July and October 2012 IPD to the most
junior Classes: EUR6.6 million to Class E and EUR32.1 million to
Class D. The two largest loans in the pool are the Berlin loan
and the Tommy loan, which together contribute 69% of the total
current securitized balance and are secured by German residential
units.

The Berlin loan (52.8% of the current pool) and the Tommy loan
(16.3%) have been assessed with regards to the current German
property and lending markets situation. Moody's whole loan LTV at
balloon is 63% and 78% respectively. Both loans are scheduled to
mature in 2016. Despite a moderate increase in expected default
probability at maturity of the loans, the overall probability of
default and loss expectation for these two loans remain
relatively low (0% -25%).

Portfolio Loss Exposure: Moody's expects a significant amount of
additional losses (5-25%) on the securitized pool, stemming
mainly from the performance and the refinancing profile of the
remaining loans in the pool. Given the default risk profile and
the anticipated work-out strategy for defaulted and potentially
defaulting loans, these expected losses are likely to crystallize
in the short to medium term.

Rating Methodology

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

Other factors used in this rating are described in European CMBS:
2013 Central Scenarios published in February 2013.

The updated assessment is a result of Moody's on-going
surveillance of commercial mortgage backed securities (CMBS)
transactions. Moody's latest action on the Notes was on June 1,
2011. The last Performance Overview for this transaction was
published on January 31, 2013.

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

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


ROYAL KPN: Fitch Assigns 'BB' Rating to New Capital Securities
--------------------------------------------------------------
Fitch Ratings has assigned Royal KPN N.V.'s ('BBB-'/Stable)
proposed subordinated perpetual and long-dated capital securities
a final rating of 'BB'.  Fitch has also assigned KPN's planned
USD long-dated capital securities an expected rating of
'BB(EXP)'. The final rating is contingent on the receipt of final
documents conforming materially to the preliminary documentation.

After issuing EUR1.1 billion and GBP400 million of capital
securities, KPN intends to issue similar USD capital securities
as part of its plan to raise EUR2 billion equivalent of hybrid
securities. The USD securities have similar terms to the EUR and
GBP hybrid securities which are deeply subordinated and rank
senior only to KPN's ordinary shares, 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 below KPN'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 Dec. 13,
2012 at www.fitchratings.com.

The USD securities will also qualify for 50% equity credit like
the GBP and EUR securities, subject to KPN's AGM on April 10,
2013 approving the company's EUR3bn rights issue.

Key Rating Drivers

KPN's plans to strengthen its balance sheet show that the company
is committed to maintaining its investment grade profile.
However, Q412 results show that the company continues to operate
in a challenging environment. Fitch does not expect KPN's
operating free cash flow to recover significantly in 2013 and
2014.

- Muted Cash Flow Generation

Fitch expects KPN's 2013 underlying EBITDA to be significantly
lower than in 2012. Fitch expects capex to remain around 2012
levels as KPN continues to upgrade its networks to maintain its
leading position in the Netherlands and to boost growth in
Germany. Improvements in operating free cash flow over the next
few years will depend on how successful KPN is in stabilizing its
domestic position and taking market share in Germany.

- Mobile New Entrant Threat

KPN has managed to obtain good spectrum in the auction, which
should help underpin the company's longer-term competitive
position in the Dutch mobile market. However, Tele2 plans to
launch the fourth mobile network in the Netherlands after
purchasing an attractive 800MHz spectrum in the auction to
complement its previously acquired 2.6GHz spectrum. This new
entrant is likely to be intent on gaining market share, which
could lead to increased price competition.

- High Domestic Fixed-Line Competition

Competition also remains intense in the fixed-line segment, where
Dutch cable TV operators are the main threat. Although KPN
stabilized domestic residential broadband subscribers in Q312,
profitability remains under pressure. In response to the cable
threat, KPN is upgrading its network through Reggefiber, KPN's
joint venture to rollout a fibre-to-the-home (FTTH) network in
the Netherlands.

- Reggefiber liabilities

KPN could own 100% of Reggefiber by 2017 (after the exercise of
two options, subject to regulatory approval) which leads us to
include all of the Reggefiber-related liabilities when assessing
KPN's credit profile. These liabilities include the exercise of
options to buy the 49% of Reggefiber that KPN does not own, and
the shareholder loans and external financing incurred to support
the FTTH network rollout. By end-2014, when KPN might have to
fully consolidate Reggefiber, Fitch estimates these liabilities
could amount to around EUR2 billion, including the contingent
liability from the last option exercisable as of 2017.

Rating Sensitivities

Negative:

- Continued deterioration in KPN's domestic fixed and mobile
   operations

- An expectation that net debt/EBITDA (including Reggefiber-
   related liabilities) could exceed 3.5x on a sustained basis
   could lead to a downgrade

Positive:

- Successful completion of the proposed EUR3 billion rights
   issue would result in KPN's leverage falling below the key
   3.0x threshold.

To consider positive rating action, Fitch would also want to see
clear evidence that there is a sustained improvement in KPN's
domestic fixed and mobile operations.


* NETHERLANDS: Moody's Changes Outlook on Dutch Banks to Negative
-----------------------------------------------------------------
Moody's Investors Service changed the outlook to negative from
stable on the long-term ratings of ABN AMRO Bank N.V., NIBC Bank
N.V. and Rabobank Nederland N.V., prompted by the change in
outlook to negative on these banks' bank financial strength
ratings.

Accordingly, the rating outlooks for guaranteed subsidiaries or
special issuing entities of these banks and their rated debt were
changed to negative from stable. The negative outlook on ING Bank
N.V.'s BFSR and long-term ratings was maintained.

The negative outlook on the banks' BFSRs is driven by Moody's
view that the operating environment in the Netherlands is
becoming more challenging than previously anticipated. This
implies greater downside risk in asset quality in areas where the
banks have large concentrations, beyond the impact that normal
cyclical changes would be expected to have.

Concurrently, Moody's has affirmed the BFSRs, the long-term and
short-term senior debt and deposit ratings, the dated
subordinated and hybrid instrument ratings for ABN AMRO, ING
Bank, NIBC Bank and Rabobank. Moody's affirmation of the banks'
ratings reflects the rating agency's view that the pressures on
the banks' standalone credit strength are not sufficient to
warrant a change in their ratings.

Rationale For Outlook Change To Negative

- Bank Financial Strength Ratings

Moody's believes that ABN AMRO Bank, ING Bank, NIBC Bank and
Rabobank Nederland are well-capitalized for their current rating
levels and therefore resilient to further cyclical changes, which
the rating agency recognized in affirming their BFSRs,
notwithstanding rising impairments.

However, the operating environment remains uncertain and fragile,
with the potential for further macro or financial market shocks
to undermine banks' intrinsic credit strength beyond the impact
that normal cyclical changes would be expected to have. Recent
developments notably include (1) a material further downward
shift in macro forecasts to a 0.6% contraction in GDP in 2013,
projections of sluggish growth and depressed domestic consumption
thereafter; (2) an upward shift in the seasonally adjusted
unemployment rate to 7.7% in January 2013 on the national
definition and 6.0% on the harmonized Eurostat definition and
Moody's expectation of a further increase; and (3) a material
upward shift in losses expected in particularly fragile markets,
notably in commercial real estate (CRE). In the Netherlands CRE
faces sustained higher vacancy rates and declining collateral
values.

These shifts do not change Moody's central scenario to an extent
that would result in BFSR downgrades. However, they imply greater
downside risks in areas of exposure in which the banks have
significant concentrations (CRE, but also SMEs and residential
mortgages), and more broadly an increased downward bias to the
performance of other domestic exposures. Each bank has different
exposures, concentrations and mitigating factors, but all are
exposed to a potential for shocks causing material rises in
impairments, which Moody's reflects in the negative outlook.

- ABN Amro Bank

The change in the outlook on the C- BFSR to negative from stable
reflects Moody's view that the further deterioration in the
operating environment for banks in the Netherlands will likely
affect the bank's overall asset quality profile during the
outlook period. As at year-end 2012, ABN AMRO had CRE sector
exposures totaling EUR12 billion, which represent a large portion
of its Tier 1 capital (77%), but only around 4% of the bank's
total loan book, as at the same reporting date. Additionally, its
exposure to the riskier CRE sub-sectors represented a small
portion of this portfolio and the rating agency has taken note of
the portion of social housing loans within the bank's CRE book,
which are government-guaranteed. The bank's key business focus on
the Netherlands with a total mortgage book of EUR153.9 billion,
other consumer loans for EUR16.5 billion and the remaining part
of the commercial loan book of around EUR73 billion, particularly
SME loans, renders it vulnerable to the deteriorating economic
environment in the Netherlands. This is also reflected by the
rapid increase in loan impairment charges during H2 2012. While
at a Tier 1 capital ratio of 12.9% as of FYE 2012, ABN AMRO has a
significant loss-absorption buffer under Moody's central scenario
and for its current standalone credit strength of C-/baa2,
Moody's believes that the bank is vulnerable to potential shocks
from a further deterioration in the operating environment and to
rising risks under its assumptions.

-- ING Bank

The continued negative outlook on ING Bank's C- BFSR reflects the
pressure exerted by the further deterioration in the operating
environment in the Netherlands on the performance of domestic
exposures. Although Moody's believes ING Bank's capital provides
comfortable loss-absorption capacity, the likely increase in
credit losses over the coming 12-18 months are expected to weigh
on its profitability.

The bank's higher diversification compared to its main peers in
terms of business and geographic exposures may mitigate this
impact. Nevertheless, Moody's says that with domestic lending
representing more than 30% of ING Bank's total loan book, the
bank remains sensitive to any deterioration in the Dutch retail
and corporate markets. Additionally, the bank exhibits relatively
high concentration on the CRE sector, including both domestic and
international exposures which, based on the amount reported in
the Real Estate Finance portfolio, accounts for 5.7% of the
bank's customer lending book and 75% of its Tier 1 capital as of
end-2012.

The negative outlook also continues to incorporate Moody's view
that further deterioration in the European banks' funding
environment may weigh on ING Bank's liquidity position as a
result of its group-wide funding structure. The rating agency
recognizes that the latter has considerably improved over 2012,
primarily as a result of a material increase in customer deposits
and a substantial lengthening of ING Bank's wholesale funding
profile. Further progress achieved in the bank's group-wide
balance-sheet integration strategy has also improved liquidity at
the level of ING Bank N.V., the Dutch parent company on a
standalone basis. From a rating perspective, Moody's says that
these improvements offset to a large extent the negative impact
exerted by the asset-quality pressures.

-- NIBC Bank

The change in outlook on NIBC Bank's D+ BFSR reflects Moody's
view of higher asset-quality risks embedded in the bank's
corporate loan portfolio, which is focused on sectors -- such as
commercial real estate and shipping -- that the rating agency
considers as cyclical and therefore more vulnerable to the
aforementioned macroeconomic downturn in the Netherlands and the
rest of Europe. A material deterioration in the asset quality of
this portfolio could exert pressure on the bank's standalone
financial strength, despite its sound capital base, in Moody's
view.

At end-June 2012, NIBC Bank's CRE loans amounted to EUR1.8
billion (excluding a large exposure which has been sold to
external investors), equivalent to just above 100% of the bank's
Tier 1 capital at end-2012. This portfolio, which comprises a
relatively small number of exposures, is highly concentrated on a
few limited projects, which Moody's views as a credit weakness.
These concerns are partly mitigated by the fact that more than
50% of NIBC's CRE portfolio comprises residential real-estate
financing in Germany, where house prices are expected to show a
strong resilience.

The bank also has a relatively large exposure to the shipping
industry, of around EUR1.8 billion at end-June 2012. While not
directly affected to the downturn affecting the Dutch economy,
this sector is exposed to the performance of the global economies
and to trade volumes. Given the persistently fragile
macroeconomic environment in Europe and in some other major
economies, Moody's considers that there is potential for higher
credit risks on the bank's shipping exposures.

In addition to its CRE portfolio, NIBC reported around EUR8.2
billion of mortgage loans at end-2012, under its own book and in
securitizations. The performance of the bank's mortgage
portfolio, which is predominantly composed of Dutch residential
mortgages, has thus far remained resilient. Moody's nonetheless
considers that the rapid increase in the unemployment rate in the
Netherlands and the prolonged decline in property prices could
impair the mortgage portfolio's overall performance.

-- Rabobank Nederland

The change of outlook to negative from stable on Rabobank's B-
BFSR reflects the pressure exerted by the further deterioration
in the operating environment in the Netherlands on asset quality,
especially the Dutch exposures. With domestic lending
representing around 75% of its total loan book, the bank is
particularly sensitive to any deterioration in the Dutch retail
and corporate markets, although Moody's believes the bank's track
record of a conservative business profile will continue to
mitigate this negative trend. Additionally, Rabobank's exposure
to the CRE sector represents a relatively high share of its loan
portfolio (6%) and Tier 1 capital (76.8%) at the end of December
2012. However, Moody's notes that this exposure also includes
lending with a lower-risk profile than standard CRE loans,
notably those extended to social housing companies that benefit
from a state guarantee, as well as those granted to corporates
for the financing of real estate for their own use. Although the
rating agency believes that Rabobank's high level of capital
provides comfortable loss-absorption capacity, the likely
increase in credit losses over the coming 12 to 18 months is
expected to weigh on its profitability.

-- Debt And Deposit Ratings

The outlook on the long-term debt and deposit ratings of ABN AMRO
Bank (A2), NIBC Bank (Baa3) and Rabobank Nederland (Aa2) was
changed to negative from stable, reflecting the similar change on
the BFSR outlook. The negative outlook on ING Bank's A2 long-term
debt and deposit ratings was maintained, reflecting the continued
negative outlook on the bank's standalone BFSR.

What Could Move The Ratings Up/Down

ABN AMRO Bank, ING Bank, NIBC Bank and Rabobank Nederland carry a
negative outlook and as such are unlikely to be upgraded in the
foreseeable future.

Factors that could lead to a downgrade of these banks' ratings:

-- ABN Amro Bank

Moody's might downgrade the bank's BFSR if the weakening
macroeconomic environment were to (1) lead to further significant
deterioration of the bank's asset quality; or (2) have a negative
impact on its liquidity, profitability and capital. The BFSR
could also be downgraded if the bank (1) fails, in Moody's view,
to reach the expected operational efficiencies resulting from the
ongoing integration process with former Fortis Bank Nederland
N.V. (merged in July 2010), although Moody's notes that
management has recently indicated that the relevant costs have
now been fully accounted for and progress in achieving
operational efficiencies has been made; and/or (2) materially
increases its risk profile, for example as a result of expanding
its riskier activities or materially increases its market risk
appetite. A downgrade of the debt and deposit ratings would be
triggered by a downgrade of the BFSR, or by a change in Moody's
assessment of the currently very high probability of systemic
support from the Dutch state for this state-owned bank.

-- ING Bank

The main factors that would lead Moody's to downgrade ING Bank's
standalone BFSR include (1) a significant deterioration in the
macro-economic environment beyond Moody's current expectations,
leading to higher credit losses and margins and earnings
pressure; (2) a reappraisal of ING Bank's reliance on wholesale
funding in the context of an increasingly fragile funding
environment; and (3) if the current restructuring of the ING
group resulted in weaker-than-expected franchise value or
capital.

The bank's senior ratings could be downgraded following (1) a
downgrade of its standalone BFSR; (2) deterioration in the
creditworthiness of the support provider, the Netherlands, and
its ability or willingness to provide support to the benefit of
creditors; or (3) a re-assessment of systemic support currently
factored into the ratings.

-- NIBC Bank

Moody's might downgrade the bank's BFSR if the risks on the
bank's asset quality were to increase, particularly because of
(1) a weakening of the performance of, or an increasing
concentration of its CRE exposure; or (2) increasing risk on its
other asset exposures, notably to cyclical corporate sectors. The
bank's BFSR could also be downgraded if Moody's considers that
the bank's liquidity profile or funding mix deteriorates. NIBC's
long-term and short-term debt and deposit ratings would be
downgraded in the event of a downgrade of its BFSR.

-- Rabobank Nederland

Downwards pressure could develop on the BFSR if the group's asset
quality deteriorates, notably as a result a weakening of the
macro-economic environment beyond Moody's current expectations
and a significant decline in the Dutch housing market. A
deterioration of the group's financial structure through an
increase in liquidity gaps could also negatively affect
Rabobank's standalone credit assessment. Additionally, a
deterioration of Rabobank's franchise in its core market, any
increase in market risks, or evidence of a significant decrease
in underlying profitability would also exert pressure on its
BFSR. The bank's risk profile and earnings quality would likely
weaken if Rabobank were to change its strategic direction and
become more reliant on volatile earnings streams from non-banking
activities. However, Moody's believes that this is unlikely at
present and the rating agency understands that the bank is
decreasing its exposure to those activities.

A downgrade of the Aa2 long-term deposit and debt ratings may be
triggered by (1) a downgrade of the BFSR; and/or; (2) Moody's
perception of a lower probability of systemic support in the
event of stress.

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



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


* PORTUGAL: Moody's Notes Slight RMBS Performance Deterioration
---------------------------------------------------------------
The performance of Moody's-rated Portuguese residential mortgage-
backed securities deals deteriorated slightly in the three-month
period to January 2013, according to the latest indices published
by Moody's Investors Service.

Outstanding defaults (360+ days overdue, up to write-off)
increased to 1.9% over the current balance in January 2013, from
1.7% in October 2012. On a year-on-year basis, outstanding
defaults increased 36.8%. 60+ delinquencies remained constant
during the 3 months up to January at 1.8%. 90+ day delinquencies
decreased slightly to 1.3% in January from 1.4% in October. The
prepayment rate was stable from October to January at 1.4%, from
2% 12 months earlier.

Most Portuguese RMBS transactions benefit from a provisioning
mechanism, wherein excess spread is captured to provide for
future losses on highly delinquent loans, before losses are
actually realized. When excess spread is insufficient for
provisioning the reserve fund is drawn. At the end of January
2013, the reserve funds in eight transactions were below target
levels.

Moody's outlook for Portuguese RMBS collateral performance is
negative. Moody's expects that Portuguese GDP will decline 1.2%
year-on-year in 2013, after declining 3.3% in 2012. Household
borrowers' disposable income will fall as unemployment rises.
Moody's expects that the unemployment rate will be 16.5% in 2013,
up from 15.4% in 2012.

Overall, Moody's has rated 32 Portuguese RMBS transactions since
2001, of which 27 are outstanding, with a total outstanding pool
balance of EUR18.7 billion as of January 2013.



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


OLTCHIM: Legal Administrators Recommend Privatization
-----------------------------------------------------
Ziarul Financiar reports that the legal administrators of Oltchim
recommend the insolvent company's privatization either by setting
up a special purpose vehicle, which takes over its functional
assets, or by splitting up the viable assets from the nonviable
ones.

As reported by the Troubled Company Reporter-Europe on Feb. 1,
2013, SeeNews related that Oltchim's net loss jumped to RON308.5
million (US$95.2 million/ EUR70.3 million) in the first nine
months of 2012 from RON180 million a year earlier.  In 2011,
Oltchim reported a net loss of RON278 million on a turnover of
RON1.53 billion, SeeNews disclosed.

Oltchim is a Romanian state-owned chemical plant.

A court in the southwestern Romanian county of Valcea declared
the company insolvent on January 30, 2013.  The court appointed a
consortium made up of Rominsolv SPRL and BDO Business
Restructuring SPRL as its temporary administrator.  The state-
controlled company filed for insolvency on Jan. 24.


ROMSTRADE: CITR Confirmed as Insolvency Administrator
-----------------------------------------------------
Romania-Insider reports that Casa de Insolventa Transilvania
(CITR) has been confirmed as Romstrade's administrator following
its entry into insolvency in December last year, when the Giurgiu
Court has granted the application to open insolvency procedures
on behalf of struggling Romstrade.

According to Romania-Insider, although CITR has been working on
Romstrade for last three months, determining what went wrong and
finding the company's strengths and weaknesses, said CITR
founding partner Andrei Cionca, "the biggest challenge starts
now".

More than 85% of Romstrade's creditors voted in favor of
appointing CITR as the administrator, Romania-Insider relates.

Romstrade hit the headlines last year when the company's owner
Nelu Iordache, nicknamed "The Asphalt King", was indicted and
convicted of various offenses related to the misappropriation of
funds, Romania-Insider recounts.  Contracts worth millions of
euros were canceled, Romania-Insider discloses.

Romstrade is a Romanian highway construction company.



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


SISTEMA JSFC: Spectrum Bid Win Credit Positive, Says Moody's
------------------------------------------------------------
Moody's Investors Service said that the result of a recent
auction for mobile spectrum in India is credit positive for
Sistema JSFC (Ba3 stable) as it implies that the company will
need to make only moderate additional investment to retain its
business in India, while it also provides growth opportunities
due to technological neutrality of the won spectrum.

On March 11, Sistema's 57% subsidiary Sistema Shyam TeleServices
Ltd (SSTL), a mobile operator in India, won the auction for
mobile spectrum in the 800 MHz band in eight Indian circles, for
a total consideration of US$665 million. Of this total, US$297
million is covered by SSTL's license fees, which it has already
paid. The remaining US$368 million is to be paid in 10 equal
annual installments starting from 2016.

Moody's views the additional investment to be made by SSTL as
fairly moderate compared with what was anticipated a year ago,
when the licenses were revoked by the Indian authorities, which
demanded additional payment for them potentially amounting to
billions of US dollars. Given that SSTL is as yet unprofitable,
Moody's believes that any burden in terms of the payment of
additional license fees would fall on its parent company Sistema.
That said, Moody's recognizes that deferral of payment to 2016 is
beneficial for Sistema, as there will be no immediate pressure on
its liquidity as a result.

Until now, the uncertainty regarding SSTL's additional payment
for its revoked licenses was one of the main factors exerting
pressure on Sistema's credit profile. If the payment required for
Sistema to retain its Indian business were to have been material,
it would likely have drained the company's liquidity at the
parent company level and possibly increased its leverage (which
was 2.1x debt/EBITDA on a consolidated basis as of September
2012, as adjusted by Moody's). The completion of the auction puts
an end to that uncertainty.

Moody's notes that the won spectrum is technologically neutral,
which means that SSTL will be able to develop LTE-based mobile
data services on that spectrum, gradually replacing its current
offerings based on the ageing CDMA technology. Although SSTL
ceased its operations in 13 out of 22 circles in which it was
present before the licenses were revoked, the company estimates
that the remaining nine circles provide a dominant 75% of its
revenues and comprise more than 60% of potential mobile data
services subscribers in India.

Sistema is Russia's largest public financial corporation, with a
diversified asset base in oil & energy, telecoms, technology,
banking, media, retail and other businesses. The founder of the
company, Mr. Vladimir Evtushenkov, holds 64.18% of Sistema's
common shares. The remainder is held by minority shareholders and
is in free float. In the last 12 months to September 30, 2012,
Sistema generated revenue of US$33.2 billion and EBITDA of $9.0
billion (as adjusted by Moody's).



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


MIVISA GROUP: S&P Assigns 'B+' Long-Term Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B+'
long-term corporate credit rating to Spanish tin can manufacturer
Mivisa Group.  The outlook is stable.

At the same time, S&P assigned its 'B+' issue rating to the
group's EUR780 million senior secured bank facilities.  The
recovery rating on the senior secured bank facilities is '3',
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.

The ratings on Mivisa reflect S&P's assessment of the group's
"highly leveraged" financial risk profile and "fair" business
risk profile.

Supporting rating factors include Mivisa's strong market
positions and track record of passing through increases in input
costs to customers, which mitigates the group's exposure to
volatility in tinplate prices.  Furthermore, S&P considers
Mivisa's robust operating efficiency, supported by its
centralized manufacturing production process (with local assembly
lines), to be a major contributor to the group's high operating
margins.

Negative rating factors include what S&P assess as Mivisa's
"highly leveraged" capital structure and "aggressive" financial
policy.  Mivisa's ability to generate strong free operating cash
flow (FOCF) will likely allow the group to deleverage relatively
quickly.  However, S&P believes that any material deleveraging
will not be permanent, as the group's private equity owners are
likely to recapitalize or sell the business.

Mivisa has considerable supplier concentration, as ArcelorMittal
supplies a significant amount of Mivisa's tinplate.  Furthermore,
high working capital needs partly reflect long payment terms in
the countries where Mivisa operates, as well as seasonal
inventory build-up.  The group also suffers from concentration
risk associated with having relatively few production sites.

In S&P's view, Mivisa's operating performance will continue to
translate into positive FOCF and the group will maintain an
"adequate" liquidity position over the short term.  In addition,
S&P forecasts that modest revenue growth and continued input cost
pass-through will allow the group to maintain adjusted funds from
operations (FFO) to debt at about 10% and adjusted debt to EBITDA
of 5.0x-5.5x.

S&P could take a negative rating action as a result of
deteriorating operating cash flow generation--for example, if
FOCF were to turn negative.  In S&P's opinion, such a development
would most likely be a result of significant working capital
outflows or expansion capex beyond its current forecast.
Likewise, S&P could lower the ratings if the group pays a high
dividend that increases leverage above levels that S&P views as
commensurate with the current ratings.

S&P could take a positive rating action if Mivisa's credit
metrics improve to levels that S&P views as commensurate with an
"aggressive" financial risk profile over a sustained period.
This could occur if FOCF generation is materially stronger than
S&P's current forecasts, and the group deleverages more quickly
than S&P anticipates.  However, S&P believes that this is
unlikely, because it sees a high likelihood that any material
deleveraging will not be permanent since the owners are likely to
recapitalize or sell the business.


VALENCIA FOOTBALL: Spanish Court Nullifies Bankia Loan Guarantee
----------------------------------------------------------------
Agence France-Presse reports that a Spanish court has nullified a
guarantee made by the Valencian regional government over a loan
given to Valencia football club by the troubled Spanish bank
Bankia.

The original loan of EUR75 million (US$97.7 million, GBP65.6
million), which has now grown to EUR86 million  (US$112 million,
GBP75.2 million) with interest payments, was taken out on behalf
of the Valencia foundation in 2009 so that it could buy shares in
the club to help prevent it falling into administration, AFP
discloses.

According to AFP, it had been guaranteed by the local government
through the Valencian Court of Finance (IVF), but that has now
been declared void by the Court of Administrative Dispute, which
found that by allowing the loan to be guaranteed the IVF had
acted to the "detriment of other members of the club."

The case had been brought back to court by those members who had
previously bought shares in the club and had opposed the granting
of the loan in the first place as it would diminish their
interest in the club, AFP recounts.

The local government already paid EUR4.8 million (US$6.3 million,
GBP4.2 million) at the beginning of the year to cover a payment
which the foundation failed to meet, AFP relates.

Bankia, AFP says, confirmed that repayments on the loan were up
to date and, with the next payment not due until August 27, they
were "studying different options to receive value for their
rights and those of their shareholders."

However, the vice-president of the Valencian local government,
Jose Ciscar, said the decision does not necessarily mean the club
is now under the control of the bank, AFP notes.



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


SEKERBANK TAS: Moody's Affirms 'D' Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service affirmed the D standalone bank
financial strength rating (BFSR), equivalent to a Ba2 baseline
credit assessment (BCA), of Sekerbank T.A.S (Sekerbank).
Subsequently, Moody's has affirmed (1) the bank's Ba1 long-term
and Not-Prime short-term local-currency deposit ratings; and (2)
the Ba2 long-term and Not-Prime short-term foreign-currency
deposit ratings. All ratings carry a stable outlook.

Sekerbank's long and short-term Turkish national scale ratings of
A2.tr and TR-1 were also affirmed.

Ratings Rationale:

The Ba1/Not-Prime local-currency deposit ratings are supported by
Sekerbank's ba2 BCA and a moderate likelihood of systemic support
from the Turkish government. This results in one notch of rating
uplift from the BCA, reflecting its national loan and deposit
market shares of approximately 1.5%, and its strong regional
presence in rural areas.

Moody's affirmation of the D BFSR reflects Sekerbank's
satisfactory financial fundamentals, which are gradually
improving, and its small national (but strong regional)
franchises, with a granular deposit base. The bank's market share
has been stable in Turkey's high-growth and competitive domestic
banking environment, demonstrating the resilience of its
established SME banking franchise. However, Moody's says that the
bank's ratings are constrained by (1) the bank's low cross-border
diversification; (2) the relatively unseasoned nature of the loan
book with moderate asset quality; (3) its evolving risk culture
and risk-management practices, particularly in retail and
corporate loans, which forms part of the bank's expansion and
revenue diversification strategy; and (4) relatively high levels
of exposure to Turkish government securities, and the
construction sector.

Sekerbank's improved profitability indicators compare favorably
with the system in terms of pre-provisioning income, but
underperform in terms of net income-to-risk-weighted assets. The
bank's profitability is supported by its higher-risk, but also
higher-yielding SME and commercial lending, while its retail
lending activities have been modest (primarily in deposit
collection). The lower net income ratio displays some elevated
volatility due to persistently high provisioning costs, mainly
reflecting the bank's expansion in new SME segments and corporate
markets that have been outside of its traditional core segments.

The rating agency notes that Sekerbank's exposure to the
construction sector -- comprising approximately two thirds of
government-initiative-related infrastructure constructions --
remains twice that of the system average and accounts for 85% of
Tier 1 capital and 13.3% of the total loan book. In Moody's view,
this risk concentration is an important rating constraint because
it exposes the bank to potential shocks if the operating
environment deteriorates, thereby elevating loan impairments.
Sekerbank continued to improve its core capitalization, which
Moody's considers sound at a Tier 1 Basel II ratio of 12.2% as of
year-end 2012. This level provides the bank with good loss-
absorption capacity under Moody's scenarios for stressing
earnings, asset quality and capital.

The foreign currency deposit rating has been affirmed at Ba2/Non-
Prime with a stable outlook and is constrained by Turkey's
foreign-currency deposit ceiling.

Moody's affirmation of the national scale ratings follows the
affirmation of the bank's local-currency deposit ratings.

What Could Move The Ratings Up/Down

The stable outlook indicates that there is no upwards pressure on
the bank's ratings. The BFSR could be upgraded following
improvements in asset quality, coupled with successful
diversification in Sekerbank's business segments -- including a
further deepening of the retail franchise -- with sustainable
positive earnings contributions.

Sekerbank's successful expansion of its franchise and origination
of new business -- whilst maintaining a modest risk profile -- as
well as improvements in efficiency will be additional factors in
the evolution of its ratings. Positive pressures on the GLC long-
term ratings could result from an upgrade of the BFSR or an
assessment of higher systemic relevance of Sekerbank in the
longer term, as its franchise and market shares materially
develop further.

The BFSR could be negatively affected if (1) competitive
pressures constrain further franchise development, or lead to a
material decline in profitability; or (2) asset-quality metrics
deteriorate further. In addition, Moody's says that negative
pressure could be exerted on the BFSR if Sekerbank's capital
position does not match its high asset growth. The GLC long-term
ratings could be downgraded as a result of (1) negative pressures
on the BFSR; and/or (2) Moody's revision of its systemic support
considerations; or (3) pressures on the sovereign rating. Moody's
says that considerations (2) and (3) are unlikely to materialize
at present.

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

Moody's National Scale Ratings are intended as relative measures
of creditworthiness among debt issues and issuers within a
country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated
by a ".nn" country modifier signifying the relevant country, as
in ".mx" for Mexico.



=============
U K R A I N E
=============


DTEK FINANCE: Fitch Assigns 'B(EXP)' Rating to USD Senior Notes
---------------------------------------------------------------
Fitch Ratings has assigned DTEK Finance plc's proposed USD
denominated senior notes an expected foreign currency senior
unsecured rating of 'B(EXP)'. The notes are issued by DTEK
Finance plc (issuer), a wholly owned subsidiary of DTEK Group,
and contain a call option provision. The proceeds from the notes
issuance are expected to be used to repay a majority of the
existing US$500 million notes due in 2015 and to fund the
company's capex, working capital, new acquisitions and for other
general corporate purposes.

The final rating is contingent upon the receipt of final
documentation conforming materially to information already
received.

The notes will be guaranteed on a senior basis by two of the
Group's holding companies -- DTEK Holdings B.V. and DTEK Holdings
Limited (DTEK, 'B'/Stable) as well as by DTEK Trading Limited
(referred to as guarantors). In addition, several of DTEK's
operating subsidiaries in Ukraine - DTEK LLC, DTEK Trading LLC,
Skhidenergo, Pavlogradugol, Servis-Invest, Komsomolets Donbassa,
Tehrempostavka, Dobropolyeugol, Rovenkianthracite,
Sverdlovanthracite, Dniproenergo, Zakhidenergo and Kyivenergo -
will execute deeds of surety in respect of the issuer's
obligations under the notes and the guarantors' obligations under
the guarantees. The bond prospectus includes covenants capping
additional indebtedness, limiting dividends and other
distributions, transfer and disposals of assets, consolidations
and cross default as well as change of control provisions.

Fitch notes that DTEK is allowed to incur a significant amount of
secured indebtedness following the issuance of the notes. The
proposed notes will not have the benefit of any collateral
security.

KEY DRIVERS

- Ukraine's Leading Private Utility

DTEK's ratings reflect its leadership in coal mining, power and
heat generation, electricity distribution and sales among
Ukraine's ('B'/Stable) utility companies. With installed electric
capacity of over 18 gigawatts (GW) at end-2012, DTEK ranks among
the largest Fitch-rated CIS power utilities.

- Post-Acquisition Profitability Deteriorated in 2012

As a result of acquisitions, in 2012 DTEK reported a significant
increase in its operating and financial results across all
segments. Its 2012 gross revenue more than doubled to UAH82.6
billion from UAH39.6 billion in 2011 and EBIDTA -- to UAH16.8
billion from UAH10.4 billion. However, DTEK's EBITDA margin
dropped to 20.4% in 2012 from 26.3% in 2011. The agency believes
that the operating margins will not recover to pre-M&A levels
until at least 2016.

- Ukrainian Power Market Constrains DTEK's Profitability

The Ukrainian power sector, which accounted for over 90% of
DTEK's consolidated revenue in 2012, remains heavily regulated.
Ukraine's power consumption remains highly correlated with GDP
growth, which the agency forecasts at 2.5% in 2012 and 3.5% in
2013. Fitch believes that while the expected deregulation of the
Ukrainian power sector may help DTEK improve its profitability in
the future, significant increases in power demand and prices are
unlikely given the vulnerable state of the national economy.

- Large CAPEX and High Leverage Expected

DTEK is planning to spend nearly UAH56 billion (US$7 billion) on
its capital investment programs between 2013 and 2016. The agency
believes that DTEK's capex program, although flexible, will be
partially debt funded. This new debt, combined with acquisition
debt that DTEK raised in 2012, will result in no meaningful
deleveraging over the medium term, in Fitch's view. The agency
forecasts that DTEK's gross funds from operations (FFO) adjusted
leverage will fluctuate between 1.7x and 2.0x until at least
2016.

RATING SENSITIVITIES

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

- Ratings Capped by Sovereign's

DTEK's Long-Term foreign currency Issuer Default Rating (IDR) is
constrained by Ukraine's Country Ceiling at 'B'/Stable, while its
Long-Term local currency IDR of 'B+'/Stable is above the
sovereign. Fitch would need to upgrade Ukraine before upgrading
DTEK's Long-Term foreign currency IDR.

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

- Significant Hryvnia Devaluation

A large, sustained hryvnia softening against the US dollar would
weaken DTEK's credit ratios and could put pressure on its
ratings.

- FFO gross adjusted leverage approaching 3x

DTEK's ratings might come under pressure if its EBITDA leverage
approaches 3x, the covenant level.

LIQUIDITY AND DEBT STRUCTURE

- Adequate Liquidity

Fitch views DTEK's debt maturity profile and liquidity as
adequate for its rating level. At December 31, 2012, DTEK had
gross adjusted debt of about UAH26.7 billion including finance
lease and off balance sheet obligations, of which short-term debt
was UAH3.4 billion. The company had UAH5.4 billion of cash and
cash equivalents on that date that was sufficient to cover its
short-term maturities.

- Comfortable Maturities

A large portion of debt, including the US$500 million Eurobonds
due in 2015 fall due over 2014-2016.

- Borrowings in Foreign Currencies

Fitch notes that over 90% of DTEK's borrowings at December 31,
2012 are denominated in RUB, EUR or USD. Most borrowings were
unsecured at Dec. 31, 2012.


* IVANO-FRANKIVSK: S&P Affirms 'B' Long-Term Issuer Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B' long-term issuer credit and 'uaA-' Ukraine national scale
ratings on the Ukrainian city of Ivano-Frankivsk.  The outlook is
negative.

The ratings are constrained by Ivano-Frankivsk's high dependence
on the policies of the sovereign, its relatively low wealth
levels, and the risks related to the poor financials of the
city's government-related entities (GREs).  These weaknesses are
offset by the city's low debt and very conservative borrowing
plans, moderate budgetary performance resulting in improved
liquidity, and diversified economy.

Ivano-Frankivsk's financial flexibility is severely constrained
by the central government's control of local and regional
government financial policies.  Despite the central government's
efforts to improve its intergovernmental fiscal policies, S&P
sees systemic risk as a key factor undermining Ivano-Frankivsk's
credit profile.

The negative outlook on Ivano-Frankivsk reflects that on Ukraine.

S&P would lower the rating on the city if S&P was to lower the
rating on Ukraine.

S&P would revise the outlook to stable if it was to revise the
outlook on Ukraine to stable.


* LVIV CITY: S&P Affirms 'CCC+' Issuer Rating; Outlook Positive
---------------------------------------------------------------
Standard & Poor's Ratings Services said it had revised its
outlook on the Ukrainian city of Lviv to positive from stable.
The 'CCC+' long-term issuer credit rating and 'uaBB' Ukraine
national scale rating were affirmed.

At the same time, S&P affirmed its 'CCC+' and 'uaBB' ratings on
Lviv's senior unsecured bond.  The recovery rating is unchanged
at '4', indicating S&P's expectation of average (30%-50%)
recovery for the debtholders in the event of a default.

The ratings reflect S&P's view of Lviv's low financial
flexibility within Ukraine's volatile and underfunded system of
interbudgetary relations, and ongoing expenditure pressures.
Additional constraints are the city's very negative liquidity, as
defined in S&P's criteria; the need to support its utility
companies; and low wealth levels in an international context.

Lviv's modest debt service and debt, and its importance as one of
western Ukraine's commercial centers, offset these negative
factors.

S&P regards Lviv's financial predictability and flexibility as
very low because of what S&P sees as very weak system support and
the strong dependence of Ukraine's local and regional governments
on state decisions about their revenues and expenditures.  On the
revenues side, the city has no control over about 90% of its
revenues, including the main sources, income tax and subsidies.
Furthermore, Lviv's expenditure flexibility is restricted, in
S&P's view, by the need to cofinance salary increases mandated by
the central government and by rapidly rising energy costs.

Lviv has substantial infrastructure investment needs, although
the most urgent works were financed by the central government as
part of the city's preparations for the Union of European
Football Associations Championship last year.

Lviv's direct debt is currently low at just about 8% of its
operating revenues in 2012.  Under S&P's base-case scenario, it
anticipates that Lviv's tax-supported debt will gradually
increase, but stay within 30% of consolidated revenues by 2015.
This is because Lviv continues to issue guarantees on
multilateral loans in support of its companies' investments in
infrastructure, including water, sewage, roads, and public
transport.  In addition, these obligations expose the city to
foreign exchange risks.

Lviv repeatedly reports nonpayment on a conditional guarantee it
provided to Ukraine's Ministry of Finance on a US$24 million loan
from the International Bank for Reconstruction and Development
(IBRD) to the water utility, although the IBRD ultimately
receives payment from Ukraine on time.  S&P do not consider this
a default by the city and treat the delayed payments as part of
the interbudgetary relations.  Nevertheless, S&P considers it a
weakness, exemplifying Lviv's weak credit culture and potential
need to support the municipal companies.  Consequently, S&P
estimates the city's debt service at a relatively large 4%-7% of
operating revenues in 2013 and 2014.

With ongoing operating-expenditure pressures and only modest
revenue growth, the city's operating balance deteriorated to
almost zero in 2010 and 2011, from surpluses of 15%-20% in 2007
and 2008.  However, it improved to about 5% in 2012 and S&P
expects it to remain at 4%-5% in 2013-2015 under its base-case
scenario, supported by expected economic and tax revenue growth.
S&P also anticipates a modest surplus after capital accounts in
2013-2015.

The positive outlook reflects the likelihood of an upgrade if, as
S&P anticipates, Lviv maintains a relatively sound operating
performance in 2013-2015, with no deficits after capital accounts
and very modest net new borrowings.  Specifically, S&P might
raise the rating if Lviv accumulated enough liquidity to repay
its bond before it matures in May 2014 (likely via a bond
placement or asset sales), and achieved a stronger, more
predictable liquidity position based on a cautious direct-debt
policy.  Progress with outstanding obligations on guarantees
might also support a positive rating action.

S&P could revise the outlook to stable if the city remained
exposed to refinancing risks ahead of the 2014 debt maturities.



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


ATTEYS SOLICITORS: May Go Into Administration, Notifies SRA
-----------------------------------------------------------
Helen Williams at Chronicle Barnsley reports that a firm of
solicitors with offices in Barnsley will find out if it has to go
into administration.

Atteys Solicitors has applied to go into administration and has
notified the Solicitors Regulation Authority (SRA).

This process comes into play when a company is insolvent and is
facing threats from creditors, the report notes.

Atteys Solicitors employs around 140 staff and covers South
Yorkshire and North Nottinghamshire, with other offices in
Doncaster, Sheffield, Wath-upon-Dearne and Retford.  Its services
range from conveyancing, wills, personal injury and family
matters to commercial, employment, property, landlord and tenant
issues.


DIGITAL ANGEL: Sells Newly Formed Subsidiary for US$852,000
-----------------------------------------------------------
Digital Angel Corporation entered into a Share Purchase Agreement
with Michael Cook, John Grant and Yee Lawrence pursuant to which
all of the outstanding capital stock of Digital Angel Radio
Communications Limited, a recently formed, wholly-owned
subsidiary of the Company registered in the UK, was purchased by
the Buyers in a management buyout.  In connection with the
transaction, the radio communications business of Signature
Industries Limited's was transferred into DARC.  Signature
Industries Limited is a 98.5% owned subsidiary of the Company and
Messrs. Cook and Grant were former directors of SIL.

The aggregate share purchase price for DARC was approximately
GBP562,000, or approximately US$852,666 based on the pound
sterling to dollar exchange rate on March 1, 2013.  Per the terms
of the Purchase Agreement, the purchase price will be paid as
follows: the Company will receive GBP150,000 in a cash down
payment on March 31, 2013, and 18 equal monthly installments of
approximately GBP9,444 under the terms of a non-interest bearing
note in the amount of GBP170,000; GBP175,000 by the assumption by
the Buyers of SIL's obligations under an invoice discount
facility; and GBP67,000 by the assumption by the Buyers of
certain obligations under existing consulting and severance
agreements with Mr. Cook.  Immediately upon completion of the
sale of DARC, the Company will begin liquidating SIL.  The
Company presently expects that approximately GBP40,000 of the
GBP150,000 cash down payment received from the sale of DARC will
be used to satisfy outstanding SIL liabilities.

The Company has previously disclosed its intention and efforts
over the past two years to sell the radio communications business
as it was deemed non-core.  The Company's remaining business
activities include the Company's mobile games applications and
resolution of the Allflex escrow related to the sale of Destron
Fearing Corporation in July 2011.

The Company has not yet determined if there will be a gain or
loss on the sale of DARC.  However, since the sale was to former
employees and directors of SIL and a portion of the purchase
price will be paid in installments, the Company anticipates that
the gain, if any, will be deferred and recognized when collection
of the note is assured.  Any gain or loss recognized will be
reflected in the Company's results from discontinued operations.

A copy of the Share Purchase Agreement is available at:

                       http://is.gd/ld29Tp

A copy of the Business Purchase Agreement is available at:

                       http://is.gd/kkTyaZ

                      About Digital Angel

Headquartered in New London, Connecticut, Digital Angel
Corporation has two business segments, Digital Games and
Signature Communications.  Digital Games designs, develops and
plans to publish consumer applications and mobile games for
tablets, smartphones and other mobile devices.  Signature
Communications is a distributor of two-way communications
equipment in the U.K.  Products offered range from conventional
radio systems used by the majority of SigComm's customers, for
example, for safety and security uses and construction and
manufacturing site monitoring, to trunked radio systems for large
scale users, such as local authorities and public utilities.

The Company's balance sheet at Sept. 30, 2012, showed US$5.7
million in total assets, US$7.5 million in total liabilities, and
a stockholders' deficit of US$1.8 million.

The Company said in its quarterly report for the period ended
Sept. 30, 2012, "Our historical sources of liquidity have
included proceeds from the sale of businesses, the sale of common
stock and preferred shares and proceeds from the issuance of
debt.  In addition to these sources, other sources of liquidity
may include the raising of capital through additional private
placements or public offerings of debt or equity securities, as
well as joint ventures.  However, going forward some of these
sources may not be available, or if available, they may not be on
favorable terms. In addition, our factoring line may also be
amended or terminated at any time by the lender with six months'
notice.  These conditions indicate that there is substantial
doubt about our ability to continue operations as a going
concern, as we may be unable to generate the funds necessary to
pay our obligations in the ordinary course of business."


DONCASTERS GROUP: Moody's Assigns '(P)B3' Corp. Family Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B3
corporate family rating to Doncasters Group Limited, a
manufacturer of superalloy and superalloy-based precision
components for aero engines, industrial gas turbines or
turbochargers.

Concurrently, Moody's has also assigned a provisional (P)B2
rating to the new US$835 million first-lien term loan and a
provisional (P)Caa2 rating to the new US$325 million second-lien
term loan, both co-borrowed at Doncasters Finance US LLC and
Doncasters Finance US Borrower LLC. The outlook on all ratings is
stable. Doncasters will use the proceeds of the issuance to
refinance its existing indebtedness.

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

Ratings Rationale:

Assignment Of (P)B3 CFR

The assignment of the (P)B3 CFR primarily reflects Doncasters'
high leverage following the contemplated refinancing. It also
reflects (1) the competitive environment in which Doncasters
operates, with the company competing with much larger component
manufacturers in Europe and North America; (2) the company's
small size, despite its broad scope of activity, which may limit
margin benefits from synergies and scale while the company
focuses on improving operating efficiency; and (3) the need to
differentiate itself from competitors through quality and
service. Moody's also notes that there is a degree of
concentration in Doncasters' customer base on original equipment
manufacturers, particularly in the industrial gas turbine and
aero engine markets, and Doncasters' challenge to generate
revenue growth despite solid outlooks for its key end markets.

More positively, the assigned (P)B3 CFR also reflects that
Doncasters benefits from servicing diversified end markets
including energy, aerospace, on/off highway commercial vehicles,
construction and petrochemical industries, which also exhibit
different levels of exposure to macroeconomic cycles,
particularly in the aftermarket business. In addition, Doncasters
benefits from its long-term contracts in its key segments,
aerospace and IGT. These contracts typically allow for raw
material price increases to be passed through to end customers
and provide some revenue visibility. Moreover, Moody's expects
Doncasters to reap benefits from price increases negotiated in
2012 and its continued focus on improving operating efficiency in
2013. Moody's would expect these factors to support the company's
profitability going forward.

- Assignment Of (P)B2 AND (P)Caa2 Ratings To First- and Second-
Lien Term Loans, Respectively

The (P)Caa2 rating assigned to the US$325 million second-lien
term loan reflects its priority within Doncasters' capital
structure, ranking behind the company's substantial first-lien
debt, including its US$835 million first-lien term loan -- rated
(P)B2 to reflect the cushion of the second-lien debt -- and its
GBP100 million asset-backed revolving credit facility.

Further Considerations

Doncasters' leverage, measured by Moody's-adjusted debt/EBITDA,
is 6.7x for 2012 on a pro-forma basis for the contemplated
refinancing, which also translates into limited free cash flow
generation after interest payments and low capex. The terms of
the new debt facilities permit some flexibility to incur debt and
pay dividends; however, Moody's expects the company's financial
policy for 2013 to focus on debt and leverage reduction.

In Doncasters' key regions, Europe and North America, the company
operates as a third player, competing with much larger aerospace
and IGT OEM suppliers including Precision Castparts (A2 stable)
and Alcoa's Howmet division (Alcoa: Baa3 RUR). Scale is important
as it allows the distribution of fixed costs over larger volumes,
increases bargaining power with suppliers or customers, and
ultimately strengthens profitability. However, although
Doncasters lacks scale, Moody's notes that the company is
backwards-integrated and benefits from producing its own
superalloys, similar to larger competitors. In addition,
Doncasters seeks to differentiate itself further through quality,
responsiveness and service.

Doncasters' customers are mainly large industrials such as
Siemens (Aa3 stable), Rolls Royce (A3 stable) and General
Electric (Aa3 stable), which are major aero engine and IGT
manufacturers. The company's top three customers accounted for
31% of its 2012 revenues. However, it is also typical in the
industry for aerospace and IGT manufacturers to operate under
long-term supply agreements (LTA) that range from three to five
years and provide some order book visibility. In 2012, Doncasters
generated 73% of the revenue of its Power Systems division and
40% of its total revenue from LTAs.

In addition, Doncasters' LTAs typically allow for the pass-
through of raw material costs, mainly the metals or alloys that
are used to create superalloys or in the manufacturing process
more generally. Doncasters also sources from a diversified group
of suppliers. However, Moody's notes that a smaller part of
Doncasters' contractual relationships is based on spot prices
which may expose Doncasters to some residual raw material price
risk.

Despite Doncasters' conglomerate nature, operating facilities
that produce different products for different end markets with
potentially limited synergies, the company does benefit from end-
market diversification. Firstly, aerospace and IGT tend to have
long lead times of up to six months, whereas some commercial
vehicle or construction end markets face potentially more
immediate sensitivity to macroeconomic trends. Secondly,
aftermarket revenues, particularly in aerospace, may help balance
trends in new-build activity.

Doncasters benefits from growth expectations across its key
markets such as commercial aviation, driven by the strong order
books of Boeing and Airbus, as well as from the increasing
importance of gas in the global energy mix, as nuclear and
emission-heavy coal energy are becoming less favored while shale
gas development is gaining traction. Moody's is more cautious
with regard to Doncasters' third-largest end market, commercial
vehicles, given still declining new vehicle registrations in
Europe (down 10.6% in January 2013).

Doncasters' operating performance in 2012 was solid as the
company improved its productivity and implemented significant
price increases against the backdrop of mixed end-market trends.
In 2013, Doncasters will continue to benefit from implemented
price increases as their full-year effect is realized. In
addition, Moody's would expect the company to focus on further
productivity gains, potentially from reorganizing its US fastener
production to allow for greater specialization and economies of
scale.

Outlook

The stable outlook on the ratings reflects Moody's expectation
that favorable dynamics across many end markets will support
Doncasters' operating performance, allowing for some deleveraging
over 2013 and beyond.

What Could Change The Rating Up/Down

Positive pressure could be exerted on the ratings if Doncasters'
Moody's-adjusted debt/EBITDA falls sustainably below 6.0x and
EBITA/interest reaches around 1.75x, while at the same time
generating sustained free cash flow.

Conversely, negative rating pressure could develop if Doncasters'
Moody's-adjusted debt/EBITDA reaches 7.0x or Moody's becomes
increasingly concerned about the company's liquidity, as a result
of negative free cash flow, for example.

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.

Doncasters Group Limited is a manufacturer of superalloy and
superalloy-based precision components for aero engines,
industrial gas turbines or turbochargers. As such, it serves as
tier 1/2 supplier to mainly the aerospace, energy and commercial
vehicle markets. Doncasters operates 33 principal facilities, of
which 12 are in the UK, 16 are in the US, three are in Europe,
and one each in China and Mexico. The company is owned by Dubai
International Capital.


DONCASTERS GROUP: S&P Assigns 'B' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B'
corporate credit rating to Staffordshire, U.K.-based Doncasters
Group Ltd.

At the same time, S&P assigned a 'B' issue rating (same as the
corporate credit rating) to the company's proposed new
US$835 million first-lien term loan, which is expected to be
split between first-lien US$535 million and GBP200 million term
loan tranches.  The recovery rating is '3', indicating S&P's
expectation of meaningful (50%-70%) recovery in a payment default
scenario.  S&P also assigned a 'CCC+' issue-level rating (two
notches below the corporate credit rating) to the company's
proposed $325 million second-lien term loan.  The recovery rating
on this debt is '6', indicating S&P's expectation of negligible
(0%-10%) recovery in a payment default scenario.  S&P expects the
company to use proceeds from the new facilities to refinance
existing debt.

S&P's ratings on Doncasters reflect the company's "highly
leveraged" financial risk profile and its "fair" business risk
profile.

Doncasters supplies highly engineered components for the
industrial gas turbine, aerospace, fastener, and automotive
turbocharger markets.

The business risk profile reflects Doncasters' good market
positions and specialized manufacturing capabilities, which the
cyclical and highly competitive nature of the markets in which it
participates partly offsets.  S&P's assessment is that the
company's management and governance is "fair."

S&P considers Doncasters' financial risk profile to be highly
leveraged, marked by high debt levels and thin cash flow
protection measures.  S&P believes private equity ownership leads
to aggressive financial policies.  The company's capital
structure includes unsecured subordinated shareholder loan notes,
which S&P treats as debt in its analysis but recognizes that the
notes' subordination and the absence of any cash interest
provides the company with financial flexibility.  S&P expects
Doncasters to extend the notes' maturity date past the maturity
of the senior secured facilities.

The outlook is stable.  S&P assumes credit measures will slowly
improve, based on its expectation for modest revenue growth over
the next two years, relatively steady margins, and modest debt
reduction from free cash flow.

S&P could lower the ratings if weakness in the company's
operating performance hurts credit measures.  This could happen,
for instance, if a global growth slowdown and reduction in
original equipment market demand causes margin contraction and
the company appears unlikely to maintain funds from operations
(FFO) to total debt of more than 5% or if S&P expects it to be
unable to generate positive free cash flow for an extended
period.

S&P could raise the ratings if it expects operating performance
to improve so that FFO to total debt appears likely to exceed
10%. This could occur if, for example, Doncasters meaningfully
reduces debt, possibly through excess cash balances and free
operating cash flow generation.


HARLEY MEDICAL: Begbies Traynor to Probe Collapse
-------------------------------------------------
Begbies Traynor on March 13 disclosed that investigators who
hunted the late Robert Maxwell's hidden fortune and who led the
search for the missing assets of collapsed claims management
company, The Accident Group, have been brought in to probe
cosmetic surgery business, Harley Medical Centre Ltd.

Paul Stanley, a partner at Begbies Traynor, will look into a
number of transactions -- including the payment of a dividend of
more than GBP1 million in 2010 -- at the company, which went into
administration in November following claims by thousands of women
fitted with faulty breast implants supplied by French firm, Poly
Implant Protheses (PIP).

Mr. Stanley, who spent months in Israel during the 1990s seeking
out shares held by Robert Maxwell, has now been appointed joint
liquidator of Harley Medical Group.

He said: "The company accounts show large dividends were removed
in 2010 and the creditors are concerned whether the directors at
this time should have known that they were facing problems.

"I have been appointed to trace all these transactions to make
sure that the business was being run in a proper manner by the
directors prior to the administration and to investigate possible
claims against the UK distributor of PIP implants."

Harley Medical Group was deluged with complaints from women
wanting their implants removed after it emerged that PIP had used
industrial silicone originally intended for use in mattresses in
its breast implants.

The company is understood to have fitted around 13,900 faulty
implants, around a third of the total in the UK and more than any
other cosmetic surgery firm in the country.

The women are understood to have made a claim against the company
for around GBP15 million after it emerged, in 2010, that the
implants were faulty.

Faced with a claim of that size, the London office of Leonard
Curtis was appointed administrator of Harley Medical Centre Ltd.
last November and sold the business to the directors through a
new vehicle, Aesthetic and Cosmetic Surgery Ltd in a pre-pack
deal.  PIP also went into administration.

Now creditors of Harley Medical Centre have appointed Mr Stanley
to investigate a number of transactions, including the removal of
large dividends in 2010.

Harley Medical, which traded as the Harley Medical Group, had its
headquarters in London but employed 175 staff at 30 offices
across the country.

Mr. Stanley has more than 30 years' experience carrying out
insolvency and proceeds of crime-related investigations and asset
tracing on behalf of creditors, government departments and
financial institutions.

As well as being involved in the hunt for Robert Maxwell's
missing millions, he also led the investigation into The Accident
Group (TAG), which collapsed in 2003 with debts of 100m and
leaving 2,400 staff out of work.

As a result of his investigation, the liquidation of TAG realised
more than GBP17 million for creditors.


NEWCASTLE BUILDING: 2012 Results in Line With Fitch Expectations
----------------------------------------------------------------
Fitch Ratings says in a newly-published special report entitled
"UK Mortgage Lenders' Outlook Stable" that despite pressure
remaining on their underlying profitability, UK mortgage lenders
have shown some resilience in their funding and liquidity profile
and therefore the Outlooks on their Issuer Default Ratings (IDRs)
are generally Stable. The only exception is Nationwide Building
Society (Nationwide, 'A+'/Negative/'F1') whose IDR is on Negative
Outlook, reflecting its weak operating profitability and exposure
to the vulnerable property finance sector.

The 2012 results recently announced by Coventry Building Society
(CBS; 'A'/Stable/'F1'), Leeds Building Society (LBS; 'A-
'/Stable/'F2'), Principality Building Society (Principality;
'BBB+'/Stable/'F2'), Yorkshire Building Society (YBS;
'BBB+'/Stable/'F2'), Skipton Building Society (Skipton; 'BBB-
'/Stable/'F3') and Newcastle Building Society (NBS;
'BB+'/Stable/'B') are in line with the agency's expectations.

Although all societies reported an increase in pre-tax profit,
this was mostly due to lower impairment charges or non-operating
items as income remained under pressure. Hence, there was no
significant improvement in underlying pre-impairment performance
except at Skipton, which had an increase in both its net interest
income and net fee income, albeit from low levels.

CBS, YBS, and LBS reported broadly flat net interest margins
(NIM) in 2012 reflecting the on-going pressure of the lingering
low interest rate environment and the costs of holding high
liquidity buffers which are low-yielding. While Skipton saw its
NIM improving, this remained significantly lower than peers'.
Fitch expects that the pressures on NIM throughout the system
will be eased by the Funding for Lending Scheme (FLS) introduced
by the Bank of England in July 2012, which has reduced the cost
of funding overall and the need (and hence cost) of holding large
excess liquidity buffers on balance sheet.

CBS, Principality, LBS, NBS and Skipton were able to report a
fall in loan impairment charges (LICs) during 2012, driven by a
stable and solid quality in their mortgage books. Most societies
noted a decrease in mortgages in arrears, which is consistent
with the overall sector trend. According to the Council of
Mortgage Lenders, the average proportion of residential mortgages
that are more than three months in arrears fell to 1.91% at end-
2012 from 1.98% at end-2011. Conversely, Fitch believes that
commercial loan portfolios continue to be a significant risk for
the societies involved in this sector as the outlook for the UK
commercial real estate sector remains weak.

The amount of the on balance sheet liquid assets fell in 2012 at
CBS, Principality, LBS, NBS and Skipton, and increased slightly
at YBS. This is in line with Fitch's view that the liquidity
holdings have peaked and will reduce to more moderate levels.
Nonetheless, the quality of liquidity buffers has remained strong
and liquidity management, conservative. Fitch therefore does not
expect the reductions seen in liquidity to be a negative rating
driver.

CBS, Principality, LBS and YBS reported a year-on-year increase
in new lending during 2012. Although all Fitch-rated societies
joined the FLS, only Nationwide, CBS and LBS had some drawings at
end-2012. Fitch expects the increase in secured funding observed
in 2012 to continue into 2013 along with a moderate usage of the
FLS.

Capitalization in the sector is sound and strengthened further
during 2012, with all seven societies having core Tier 1 ratios
above 10.5% at the year end. YBS saw the largest increase in the
ratio (13.6% at end-2012 compared to 12.6% at end-2011). However,
leverage is beginning to look high at some of the higher rated
societies (CBS and Nationwide). Fitch views the sector as having
to be well-capitalized given the mutuals' limited ability to
raise capital externally in times of stress. Although a new loss-
absorbing instrument (Core Capital Deferred Shares, CCDS) is
being discussed and is anticipated to qualify as core Tier 1
under Basel III rules, the market appetite for such an instrument
remains untested.


OPAL GROUP: Administrator Appointed to 13 Subsidiaries
------------------------------------------------------
Insider Media reports that Ernst & Young has been appointed
administrator of 13 companies in the Manchester-based Opal group.

The news follows the appointment of Mazars as administrator of
its Ocon Construction subsidiary, according to Insider Media.

The companies in administration are:

   -- OP1 Ltd,
   -- Opal Portfolio 1 Ltd,
   -- Opal Metropolitan Ltd,
   -- Opal Hulme Ltd,
   -- Opal SPV2 Ltd,
   -- Opal Portfolio 2 Ltd,
   -- Huddersfield 1 Ltd,
   -- Huddersfield 2 Ltd,
   -- Wharf Homes Ltd,
   -- Opal Warehouse Ltd,
   -- Opal City Living Ltd,
   -- Opal Developments Ltd, and
   -- Opal Commercial Investments Ltd.

Insider Media notes that BNP Paribas has also been appointed
fixed charge receiver of the property London 4, in the capital's
Tufnell Park, which is owned by Opal Carleton Ltd (OCL).

The remaining Opal Group companies, with the exception of Ocon
Construction, are not affected by these latest administrations,
Insider Media relates.

"Following the expiry of facilities, the companies and OCL have
failed to agree an ongoing funding structure with its secured
lenders. . . . The managing agents will continue to operate the
properties and residents should continue to enjoy the
accommodation and facilities on offer," the report quoted joint
administrator Sam Woodward  -- swoodward@uk.ey.com -- as saying.

The report notes that administrators are currently undertaking a
full review of the 20 properties in the companies' portfolio.

Among these properties are:

   -- Manchester student complexes Opal Hall,
   -- Opal Gardens,
   -- Daisybank Hall,
   -- Oxford Court,
   -- Briarfields and Lambert & Fairfield, and
   -- the Great Newton student block in Liverpool.

The following professional let sites in Manchester are also in
the portfolio:

   -- Orient House,
   -- Mayfair Court,
   -- Opal Court,
   -- Fairfield House,
   -- Opal House, and
   -- 15/25 Ladybarn.

The companies provide student accommodation and professional lets
for 7,200 tenants in Liverpool and Manchester alongside seven
other sites in Bradford, Dundee, Huddersfield, Leeds, Leicester,
London and Wolverhampton.


VISTEON: Swansea Factory Workers Urge Ford to Cover Losses
-----------------------------------------------------------
BBC News reports that former workers at the Visteon car parts
factory in Swansea have taken their campaign over pensions to
Westminster on the fourth anniversary of the company going into
administration.

They say they lost out when Visteon collapsed and the factory
shut in 2009, BBC discloses.  They want the plant's former owner
Ford to cover their losses, as the pensions were transferred from
there to Visteon, BBC says.

But Ford says Visteon was an independent business that was
responsible for its own decisions, BBC notes.

Ex-employees and their families from Swansea joined others from
around the UK when they delivered a letter to the prime minister
calling for David Cameron to support their cause, BBC relates.

"While Ford recognizes the severity of the situation for former
Visteon UK employees, Visteon became an independent company in
2000 and was responsible for its own business decisions," BBC
quotes a Ford spokesman as saying.

"Ford fully fulfilled both its legal and moral responsibilities
to former Visteon UK employees."

According to BBC, the spokesman said Ford was not involved in the
decision to put Visteon into administration and questions about
its pension fund should be answered by the management of Visteon
UK and the fund's trustees.

Trade union Unite says Ford guaranteed to protect workers' terms
and conditions when they transferred to Visteon, BBC discloses.

BBC notes that the union, which began legal action against Ford
in the High Court in January 2011, said the UK government should
put pressure on the motor giant to "pay up".

In the House of Commons on Wednesday, Labour MP Sian James
invited the prime minister to meet the Visteon Pensioners Action
Group, BBC says.


* UK: Insolvency Service Insolvent; Needs Cash Injection
--------------------------------------------------------
Jim Pickard at The Financial Times reports that the UK
government's Insolvency Service is all but insolvent.

Experts suggest the group, which polices bankrupt companies,
liquidates failed businesses and disqualifies unfit directors,
would be broke had it not received an emergency injection of cash
from the government, the FT discloses.  After reporting an
underlying deficit of GBP12 million last year, the agency is
heading for a deficit of GBP5 million to GBP7 million for
2012-2013, the FT says, citing Whitehall officials.

The Insolvency Service is dependent on fees and asset recoveries
from bankrupt companies and the annual number of bankruptcies has
fallen sharply over recent years, the FT states.  Official
receivers dealt with 43,594 new cases in the 2011-2012 fiscal
year compared with 77,898 received in 2009-2010, the FT notes.

The agency overestimated its ability to recover assets from
collapsed businesses through its receivers, known as the Official
Receivers, the FT says.

"The funding model creates a notional loss," the FT quotes Tony
Butcher, president of the Prospect trade union's insolvency
branch as saying at a recent committee hearing.  "You are
basically creating a balance sheet on which the Insolvency
Service looks insolvent."

The Insolvency Service said it was having to "live within its
means" because of the drop in case numbers, the FT relates.  It
has merged its regional offices and cut its headcount by 500,
with up to 400 more job cuts in the next three years, the FT
discloses.  "With this strategy in place the service anticipates
to be deficit-free by 2015," the Insolvency Services, as cited by
the FT, said.

The FT notes that while costs at the agency have been slashed by
GBP60 million since December 2009, it is hamstrung by its
obligation to provide services even when there is no prospect of
recovering fees from bankrupt people or companies.

The Insolvency Service disputes that it is "insolvent" given that
it holds GBP14 million of cash on its balance sheet, the FT
relates.  It has, however, required GBP89 million of rescue cash
from the business department (BIS) between 2008 and 2012, the FT
discloses.



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


* Fitch Reports Net Negative Sovereign Rating Actions in 2012
-------------------------------------------------------------
With the eurozone reverting to recession and emerging market
growth decelerating, sovereign rating actions turned net negative
in 2012. Downgrades topped upgrades by a ratio of 1.9 to 1 -- a
reversal of 2011's 0.5 to 1, according to a new report by Fitch
Ratings.

Fitch recorded seven sovereign upgrades in 2012, down from 19 in
2011. Downgrades climbed to 13 from 10. The resulting downgrade
rate (12.6%) readily topped the upgrade rate (6.8%), reversing
2011 results of 9.8% and 18.6%, respectively.

The 13 sovereign downgrades by region include:

        Asia Pacific                 1
        Europe                       8
        Latin America                2
        Middle East and Africa       2

The upward momentum of emerging market sovereigns slowed
considerably in 2012, with upgrades falling to six from 18 in
2011 and 11 in 2010.

Fitch registered a single long-term sovereign Issuer Default
Rating (IDR) default in 2012, Greece. The country sustained the
largest sovereign debt restructuring in modern times and the
first of any developed market economy since the Second World War.
Greece's default resulted in a Fitch sovereign issuer-based
default rate for 2012 of 0.96%.

This new study provides data and analysis on the performance of
Fitch's sovereign ratings in 2012 and over the long term,
capturing the period 1995-2012. The report provides summary
statistics on the year's key sovereign rating trends.

The study is titled 'Fitch Ratings Sovereign 2012 Transition and
Default Study' and is available on Fitch's web site under Credit
Market Research.


* EUROPE: Prolonged Low Rates May Hit Life Insurers, Fitch Says
---------------------------------------------------------------
Prolonged low interest rates in Europe would threaten the
viability of savings products with investment guarantees,
traditionally a fundamental part of many life insurers' business
models, Fitch Ratings says. The impact of low rates was
highlighted as a key concern recently when the European Insurance
and Occupational Pensions Authority called for feedback from
local regulators on the scale of the risk.

Fitch says, "The investment guarantees that insurers can offer to
new customers are driven by the yields on the bonds that they can
invest in. Low yields make these products unattractive to
customers, hitting sales volumes and potentially making the
business unviable. Some insurers have told us that they plan to
shift their business towards protection products and annuities,
where profits are driven by pricing for insurance risks, rather
than by financial markets.

"A prolonged slowdown in sales could also make insurers' existing
books of guaranteed-return business increasingly uneconomical as
declining books become insufficient to support their fixed costs.
Ultimately, insurers are likely to put the legacy business into
run-off in closed funds, which they may then offload to
consolidators. We expect further consolidation of closed with-
profits funds in the UK and significant closed-fund consolidation
in the Netherlands, where there has been a dramatic fall in
insurers' savings business due to tax changes that allowed banks
to compete on equal terms with insurers.

"A prolonged period of low interest rates would also hurt life
insurers by cutting the returns available when they reinvest
assets backing their existing guaranteed-return business.
However, this impact would vary significantly depending on how
closely they have matched the duration of their assets and
liabilities. Insurers often hold assets with a shorter duration
than their liabilities because of a lack of assets available with
duration long enough to match the liabilities, which may be 20-30
years or more.

"We believe good risk management, close regulatory scrutiny and a
supply of long-duration assets means assets and liabilities are
relatively well matched in some markets, for example the UK and
the Netherlands. Moreover, the running yields on many insurers'
existing asset portfolios, together with other non-investment
earnings from mortality and expense loadings in policyholders'
premiums, are more than sufficient to cover investment guarantees
on the existing blocks of business.

"For German life insurers we have simulated a run-off scenario
for a typical life insurance book, with the assumption the
investment portfolio is wholly in fixed-income assets and that
proceeds of maturing bonds are reinvested at 1.5%. Under this
scenario it would take until 2027 for the return on investment to
fall below the required rate.

"Insurers in the Nordic region may have less closely matched
assets and liabilities because of the relative scarcity of
longer-term assets in the region. Some have addressed this
through buying sovereign bonds from other countries such as
Germany, although this leads to further complications such as
foreign exchange risk."


* Moody's Says MMF Changes Counteract Negative Yields
-----------------------------------------------------
In response to negative trading yields in the past six months, a
number of money market funds(MMFs) have implemented structural
changes, says Moody's Investors Service in a new Special Comment
entitled "Money Market Funds: Structural Changes to Combat
Negative Yields are Credit Neutral."

The overall effects of these changes are credit neutral. Moody's
report summarizes the structural and legal changes asset
management companies have implemented in their Euro-denominated
MMFs to address the negative yield concerns.

Asset management firms -- including Royal Bank of Scotland,
Morgan Stanley, Goldman Sachs, BlackRock, Inc. and HSBC Global
Asset Management -- have amended the structures of their
respective funds (the Funds) to enable them to continue operating
as constant net asset value (CNAV) funds during periods of
sustained ultra-low or negative interest rates. This follows the
European Central Bank (ECB) decision to lower its deposit
facility rate to zero in July 2012. As a result, a number of
high-quality credits that are standard MMF holdings have traded
at negative yields at times during the past six months.

Despite the structural changes, the asset-management companies
aim to keep the gross yields of their Funds above zero, unless a
trigger event pushes levels further down.

In Moody's view, the changes to the Funds' structures are credit
neutral because: (1) the Funds' promise to investors regarding
principal preservation and provision of liquidity was not
breached; (2) the Funds sought and obtained investors' approval
before implementing the structural changes; dissenting investors
had the right to redeem their shares at par prior to the
conclusion of the restructuring; and (3) neither the Funds'
investment strategy nor their portfolio composition changed as a
result. Based on the current portfolio characteristics of the
Funds, Moody's continues to rate them Aaa-mf.

In addition, Moody's notes that these asset managers maintained
sufficient liquidity during the structural transition to ensure
that all redemption requests from investors could be settled
timely at par.


* BOOK REVIEW: Stephanie Wickouski's Bankruptcy Crimes
------------------------------------------------------
Author: Stephanie Wickouski
Publisher: Beard Books
Softcover: 395 Pages
List Price: $124.95
https://ecommerce.beard.com/beardbooks/bankruptcy_crimes_third_ed
ition.html
Review by Gail Owens Hoelscher

Did you know that you could be executed for non-payment of debt
in England in the 1700s? Or that the nailing of an ear was the
sentence for perjury in bankruptcy cases in 1604? While ruling
out such archaic penalties, Stephanie Wickouski does believe "in
the need for criminal sanctions against bankruptcy fraud and for
consistent, effective enforcement of those sanctions."  She
decries the harm done to individuals through fraud schemes and
laments the resulting erosion in public confidence in the
judicial system.  This leading authoritative treatise on the
subject of bankruptcy fraud, first published in August 2000 and
updated annually with new material, will prove invaluable for
bankruptcy law practitioners, white collar criminal
practitioners, and prosecutors faced with criminal activity in
bankruptcy cases.  Indeed, E. Lawrence Barcella, Jr. of Paul,
Hastings, Janofsky, and Walker, in Washington, DC, says, "If I
were a lawyer involved in a bankruptcy matter, whether civil or
criminal, and had only one reference work that I could rely
upon, it would be this book."  And, Thomas J. Moloney with
Cleary, Gottlieb, Steen & Hamilton describes the book as "an
essential reference tool."

An estimated ten percent of bankruptcy cases involve some kind
of abuse or fraud.  Since launching Operation Total Disclosure in
1992, the U.S. Department of Justice has endeavored to send the
message that bankruptcy fraud will not be tolerated.  Bankruptcy
judges and trustees are required to report suspected bankruptcy
212 crimes to a U.S. attorney.  The decision to prosecute is
based on the level of loss or injury, the existence of sufficient
evidence, and the clarity of the law.  In some cases, civil
penalties for fraud are deemed sufficient to punish and deter.
Ms. Wickouski suggests that some lawyers might not recognize
criminal activity that the DOJ now targets for investigation.
She gives several examples, including filing for bankruptcy
using an incorrect Social Security number, and receiving
payments from a bankruptcy debtor that were not approved by the
bankruptcy court.  In both of these real life examples, DOJ
investigations led to convictions and jail time.
Ms. Wickouski says that although new schemes in bankruptcy fraud
have come along, others have been around for centuries. She
takes the reader through the most common traditional schemes,
including skimming, the bustout, the bleedout, and looting, as
well as some new ones, including the bankruptcy mill.
The main substance of Bankruptcy Crimes is Ms. Wickouski's
detailed analysis of the U.S. Bankruptcy Criminal Code, chapter
9 of title 18, the Federal Criminal Code.  She painstakingly
analyzes each provision, carefully defining terms and providing
clear and useful examples of actual cases.  She ends with a good
chapter on ethics and professional responsibility, and provides
a comprehensive set of annexes.

Bankruptcy Crimes is never dry, and some of the cases will make
you nostalgic for the days of ear-nailing.  This comprehensive,
well researched treatise is a particularly invaluable guide for
debtors' counsel in dealing with conflicts, attorney-client
relationships, asset planning, and an array of legal and ethical
issues that lawyers and bankruptcy fiduciaries often face in
advising clients in financially distressed situations.
Stephanie Wickouski is a partner in the New York office of Bryan
Cave LLP.  Her practice is concentrated in business bankruptcy,
insolvency, and commercial litigation.

This book may be ordered by calling 888-563-4573 or through your
favorite Internet bookseller or through your local bookstore.


                            *********

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

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

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

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


                            *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Ivy B. Magdadaro, Frauline S. Abangan and Peter
A. Chapman, Editors.

Copyright 2013.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-241-8200.


                 * * * End of Transmission * * *