TCREUR_Public/130403.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, April 3, 2013, Vol. 14, No. 65

                            Headlines



B U L G A R I A

ELEKTRICHESKA KOMPANIA: S&P Keeps 'BB-' Rating on Watch Negative


F I N L A N D

PRIMULA AB: Restel Buys Four Helsinki Restaurants


F R A N C E

GOSS FRANCE: Expects to File for Bankruptcy Protection Today
INFINITY 2006-1: S&P Lowers Rating on Class E Notes to 'BB'


C Y P R U S

BANK OF CYPRUS: Troika Agree to Release 10% of Uninsured Deposits
* CYPRUS: Seeks Easier Bailout Terms with Troika


G E R M A N Y

FRESENIUS SE: S&P Affirms 'BB+' Corp. Rating; Outlook Positive


G R E E C E

EXCEL MARITIME: In Advanced Restructuring Talks with Lenders
* GREECE: To Extend Recapitalization Deadline Until End of May


I R E L A N D

OAK HILL: S&P Affirms 'BB' Rating on Class E Def Notes
TAURUS CMBS: S&P Lowers Rating on Class C Notes to 'D(sf)'


L U X E M B O U R G

ELEX ALPHA: S&P Affirms 'B+' Rating on Class E Notes


S E R B I A   &   M O N T E N E G R O

* SERBIA: S&P Affirms 'BB-/B' Credit Ratings; Outlook Negative


S W E D E N

NORTHLAND RESOURCES: In Default of Disclosure Obligations


U N I T E D   K I N G D O M

DEUTSCHE PFANDBRIEFBANK: S&P Cuts Rating on Cl. E Notes to 'CCC-'
LAIKI BANK: PRA Safeguards Deposits of UK Customers
METALTRAX GROUP: Plans to Appoint Administrators; Reviews Options


                            *********


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B U L G A R I A
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ELEKTRICHESKA KOMPANIA: S&P Keeps 'BB-' Rating on Watch Negative
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it kept its 'BB-'
long-term corporate credit rating on Bulgaria-based electricity
utility Natsionalna Elektricheska Kompania EAD (NEK) on
CreditWatch, where it was placed with negative implications on
Dec. 20, 2012.  NEK is a subsidiary of the 100% state-owned
holding company Bulgarian Energy Holding (BEH; not rated).

The ongoing CreditWatch placement reflects S&P's view of the risk
associated with the refinancing of NEK's EUR195 million
syndicated loan, which matures in May 2013 after NEK extended it
for a year. S&P understands that BEH has received a number of
committed offers for its two alternative proposals to raise
EUR250 million either in the form of bonds (with a bridge loan)
or a bank loan.  BEH aims to receive the funds before the
maturity of NEK's EUR195 million syndicated loan and BGN70
million (EUR35 million) shareholder loan in May 2013.  Although
S&P believes that BEH has taken steps to reduce the high degree
of refinancing risk, S&P still sees some remaining execution risk
while BEH selects the winning bid and completes the contractual
arrangements.

S&P also sees continuing uncertainties as to NEK's financial
structure as a result of the ongoing transfer of its monopoly
electricity system operator, ESO EAD, to BEH.  Maintenance of the
current rating on NEK, in S&P's view, would require NEK to
deleverage its balance sheet.  It could achieve this either by
allocating some of its debt to ESO, or by repaying debt using any
potential funds it receives for the transfer of ESO's ownership
to BEH to offset the loss of ESO's relatively stable regulated
cash flows.  Such actions, if sufficient to reduce debt
materially, could support an upward revision of S&P's assessment
of NEK's financial risk profile to "aggressive" from "highly
leveraged" currently, particularly if these actions coincide with
NEK finding a permanent refinancing solution for its syndicated
loan.

S&P applies its criteria for rating parents and their
subsidiaries to NEK and add two notches of parental support to
NEK's stand-alone credit profile (SACP) of 'b'.  The uplift
reflects BEH's stronger credit quality than that of NEK due to
BEH's stronger business risk position and cash flow generation,
as well as its positive discretionary cash flows and significant
cash holdings.  The uplift also reflects S&P's anticipation that
BEH will provide timely and full support in case of NEK's
financial distress.  This is because S&P assess the link between
BEH and NEK as relatively close, since NEK is a fully controlled,
strategic subsidiary within the BEH group.  At the same time, S&P
understands that NEK retains its own identity, management,
financing, and operational independence.

The CreditWatch placement reflects S&P's view of the
uncertainties over the timing of BEH's refinancing plan.  S&P
aims to resolve the CreditWatch before NEK's syndicated loan
falls due in May 2013.

S&P could revise NEK's SACP by multiple notches if the
refinancing plan is not substantially executed by the end of
April 2013.  In accordance with S&P's criteria for rating parents
and their subsidiaries, a downward revision of NEK's SACP would
result in S&P lowering the long-term corporate credit rating on
NEK to the same extent.  In addition, S&P could revise its rating
approach of adding to the SACP two notches for parent support if
it perceives that full and timely liquidity support to NEK is not
forthcoming from BEH in case of delays or obstructions to its
refinancing plan.

S&P could remove the rating from CreditWatch and affirm it once
the syndicated loan is fully refinanced with a permanent and
sustainable solution.  However, in this case, S&P would likely
assign a negative outlook to the rating to reflect the risk
related to NEK's financial structure following the transfer
of ESO.

S&P could revise NEK's SACP downward by one notch once the
transfer is complete if NEK's balance sheet deleveraging does not
occur, or does not sufficiently offset the loss of ESO's stable
regulated cash flows.  Conversely, S&P would likely affirm the
SACP if NEK's financial structure after the unbundling of ESO
improves NEK's financial risk profile to "aggressive" from
"highly
leveraged" currently.  This could result from meaningful balance
sheet deleveraging, either by allocating some of NEK's debt to
ESO, and/or by using any potential funds that NEK receives for
the transfer of ESO's ownership.

In addition, any evidence of weakening of the link between BEH
and NEK could cause S&P to revisit its approach of factoring
parent support into the rating.



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F I N L A N D
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PRIMULA AB: Restel Buys Four Helsinki Restaurants
-------------------------------------------------
Kasper Viita at Bloomberg News reports that Restel has bought
Primula's Helsinki restaurants.

According to Bloomberg, Restel said on its Web site that Helsinki
bars, restaurants Kaarle XII, Vespa, Primula and Baker's will
continue existing operations under new ownership.

Bloomberg notes that bankrupt Primula sought buyers since May.

As reported by the Troubled Company Reporter-Europe on May 14,
2013, Varma Mutual Pension Insurance company sought Primula's
bankruptcy over EUR2 million to EU2.5 million of unpaid rent.

Oy Primula Ab produces and distributes baked products and bread.
The company is based in Helsinki, Finland.  Primula bars,
restaurants include Kaarle XII, Vespa, Baker's in Helsinki.



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F R A N C E
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GOSS FRANCE: Expects to File for Bankruptcy Protection Today
------------------------------------------------------------
Simon Nias at PrintWeek reports that Goss France could be placed
in redressement judiciare, the French equivalent of
administration.

According to PrintWeek, an article in French daily Les Echos has
claimed that Goss France will file for bankruptcy protection at
11:00 a.m. today, April 3, at the Commercial Court of Compiegne,
placing some 430 jobs at risk.

This includes 320 jobs at the Goss manufacturing facility in
Montataire and 110 business consultancy and after-sales service
jobs in Nantes, PrintWeek discloses.

Goss last restructured its French operations in 2010, leading to
a headcount reduction of almost 50% at Montataire, which employed
623 staff in 2010, PrintWeek recounts.

Goss France is a press manufacturer.


INFINITY 2006-1: S&P Lowers Rating on Class E Notes to 'BB'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class D and E notes in Infinity 2006-1 "Classico".  At the
same time, S&P has affirmed its ratings on the class A, B,
and C notes.

The rating actions follow S&P's review of the credit quality of
the underlying loan in Infinity 2006-1 "Classico" under S&P's
updated criteria for rating European commercial mortgage-backed
securities (CMBS) transactions and the application of S&P's 2012
counterparty criteria.

The Chianti loan has an outstanding balance of EUR346.7 million
and represents the senior portion within an interest-only whole
loan.  The subordinated portion of the whole loan does not form
part of this transaction.  The whole loan matures in May 31,
2013, but can be extended until June 1, 2016.  S&P understands
that the borrower is discussing its intention to exercise the
three-year extension option with the servicer.

The loan is secured by 22 supermarkets and eight office
properties in Italy.  The portfolio, which has a 98.65% occupancy
rate, is multitenanted and includes tenants that S&P rates.  The
portfolio's weighted-average lease term to lease break is 4.43
years.  The securitized loan-to-value (LTV) ratio as of the
January 2013 loan interest payment date was 54.88%.  The LTV
ratio is based on a valuation that is supplied by the borrower to
the servicer every six months.

Loss allocation to the notes is synthetically linked to the
Chianti loan's securitized portion's performance.  Realized
losses are allocated to each class of notes in reverse sequential
order, starting with the class E notes, until the class balance
is reduced to zero, and then to each more senior class in turn.
The loss definition under the credit default swap (CDS) includes
loss of principal, enforcement costs, and all payments made by
the swap counterparty for the CDS upon loan default.

Given the loss definition, the class E notes' credit
characteristics differ from the other classes of notes, in S&P's
opinion.  S&P considers that there may be scenarios where it sees
losses applied to the class E notes even if the securitized loan
is fully recovered.  This is because if the loan defaults, the
swap counterparty can claim back all of the quarterly CDS
payments that it has made (since the loan has defaulted).  In
S&P's opinion, the likelihood of a default is greater either in
2013 or 2016, the two possible loan maturity dates.

Following S&P's review, it believes that the available credit
enhancement for the class D and E notes is insufficient to
mitigate the risks of losses from the underlying loan at the
currently assigned rating levels.  S&P has therefore lowered to
'BBB+ (sf)' from 'A+ (sf)' and to 'BB (sf)' from 'A (sf)' its
ratings on the class D and E notes, respectively.

Although S&P considers the available credit enhancement for the
class A, B, and C notes as adequate to mitigate the risk of
losses from the remaining underlying loan in higher stress
scenarios, S&P has affirmed its 'A+ (sf)' ratings on these
classes of notes for counterparty reasons.  S&P's 2012
counterparty criteria allow it to rate the notes in structured
finance transactions above its ratings on related counterparties
if a replacement framework exists and other conditions are met.
The maximum ratings uplift depends on the type of counterparty
obligation.  In this transaction, Natixis S.A. (A/Negative/A-1)
is the cash collateral account provider.  In accordance with
S&P's 2012 counterparty criteria, Natixis can support a maximum
potential rating of 'A+ (sf)' on the notes in this transaction.

Infinity 2006-1 "Classico" is a European synthetic CMBS
transaction that closed in 2006.  The management company, acting
on the issuer's behalf, used the proceeds of the notes to
purchase from the seller receivables arising from CDSs and cash
collateral agreements.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class                     Rating
                 To                    From

Infinity 2006-1 "Classico"
EUR436.5 Million Floating-Rate Asset-Backed Notes

Ratings Affirmed

A               A+ (sf)
B               A+ (sf)
C               A+ (sf)

Ratings Lowered

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



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C Y P R U S
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BANK OF CYPRUS: Troika Agree to Release 10% of Uninsured Deposits
-----------------------------------------------------------------
According to Bloomberg News, state-run CyBC Radio, citing
comments from central bank official Yiangos Dimitriou, said on
Tuesday that Cyprus's central bank and troika officials agreed to
release 10% of uninsured deposits held at Bank of Cyprus.

Bloomberg relates that CyBC said the central bank will work to
convince the troika to release more funds.

Spyros Stavrinakis, deputy governor of the Central Bank of
Cyprus, said on Monday that the aim is for the full 40% of
deposits above EUR100,000 held by businesses at Bank of Cyprus to
be unfrozen, Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on April 1,
2013, Bloomberg News related that Cyprus may impose losses of as
much as 60% on Bank of Cyprus accounts exceeding EUR100,000
(US$128,000) as part of an aid deal to stop the country from
going bankrupt.  The Nicosia-based central bank said in an e-
mailed statement that customers will have 37.5% of their deposits
above this amount converted into shares with full voting rights
and access to any future Bank of Cyprus dividend, Bloomberg
disclosed.  The central bank, as cited by Bloomberg, said that a
further 22.5% will be temporarily withheld to ensure the lender
meets the terms of its recapitalization, as agreed under Cyprus's
loan agreement with international creditors.  President Nicos
Anastasiades agreed on March 25 to impose losses on Bank of
Cyprus's larger depositors in exchange for a EUR10 billion
bailout after failing to get financial aid from Russia, one of
the nation's biggest investors, Bloomberg related.  According to
Bloomberg, the statement said that the Central Bank of Cyprus
will appoint an independent valuer for the commercial lender and
all or part of the 22.5% additional haircut may also be converted
into shares within 90 days of that process being completed.  The
central bank said that any remaining amount will be returned to
customers with interest, Bloomberg noted.  The statement said
that the so-called bail-in won't apply to Bank of Cyprus account
holders whose debts to the lender bring their net balance below
the EUR100,000 threshold, Bloomberg disclosed.  Holders of
accounts at other banks on the Mediterranean island aren't being
touched, Bloomberg stated.  The remaining 40% of Bank of Cyprus
deposits above EUR100,000 that aren't subject to the bail-in will
be temporarily frozen to ensure the lender's liquidity, Bloomberg
said.

Bank of Cyprus is a major Cypriot financial institution.  In
terms of market capitalization of 350 million in March 2013, it
is the country's biggest bank.  As of September 2012, the bank
held a 26.7% share of the Cypriot deposit market and a 22.5%
share of the Cypriot loan market, making it the largest bank in
Cyprus.  The Bank of Cyprus Group employs 11,326 staff worldwide.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on March 28,
2013, Fitch downgraded the Long- and Short-Term Issuer Default
Ratings (IDRs) of Cyprus Popular Bank (CPB) to Default (D) and
those of Bank of Cyprus (BOC) to 'Restricted Default' (RD) from
'B', respectively, on losses imposed on senior creditors. The
fact that BOC will continue to operate in Cyprus, while CPB will
be wound-down drives the difference in their Long-term IDRs ('RD'
for BOC; 'D' for CPB) The Support Rating Floors (SRF) of the two
banks have been revised to 'NF' from 'B' and Support Ratings (SR)
to '5' from '4' as a result of the bail-in of senior creditors.
Following this, Fitch has also downgraded their VR to 'f' from
'c'.

As reported by the Troubled Company Reporter-Europe on March 26,
2013, Moody's Investors Service downgraded to Caa3, from Caa2,
the deposit and senior unsecured debt ratings of Bank of Cyprus
Public Company Limited.  These ratings have also been placed on
review for downgrade.  At the same time, Moody's affirmed the
Bank Financial Strength Rating (BFSRs) of Bank of Cyprus at E.
It lowered the standalone credit assessment for Bank of Cyprus to
ca from caa3.


* CYPRUS: Seeks Easier Bailout Terms with Troika
------------------------------------------------
Georgios Georgiou, Natalie Weeks and Maria Petrakis at Bloomberg
News report that Cyprus government officials were seeking easier
bailout terms in talks with representatives of the European Union
and International Monetary Fund yesterday, before a meeting of
euro-area finance officials later this week.

"Final outstanding issues in talks with the troika primarily
relate to the wider financial sector and fiscal policy and
adjustment," Bloomberg quotes Christos Stylianides, the
government's spokesman, as saying in Nicosia on Monday.
Mr. Stylianides, as cited by Bloomberg, said that the government
has been granted a one-year extension to 2017 to secure a primary
budget surplus, which excludes interest payments, and it hopes to
negotiate an additional year.

Cyprus's government wants more time to reach targets required in
return for EUR10 billion (US$12.8 billion) in international funds
after agreeing to impose losses on uninsured depositors at the
country's two biggest banks, Bank of Cyprus Pcl and Cyprus
Popular Bank Pcl, Bloomberg notes.

According to Bloomberg, economists including Gabriel Sterne at
Exotix Ltd. in London have said the government's measures to
secure the bailout will hurt the nation's economy.

Cyprus Popular and Bank of Cyprus are suspended through April 15
on the Cyprus bourse and the Athens Stock Exchange, Bloomberg
discloses.

"We will likely get the main points of the Cyprus program
shortly," Bloomberg quotes Holger Schmieding, chief economist at
Berenberg Bank in London, as saying.  "Probably with some key
political decisions then to be taken by the next Eurogroup
meeting."

Mr. Stylianides, as cited by Bloomberg, said the government can't
provide an estimate on the depth of the economic contraction
right now.  The European Commission predicted before the bailout
that the economy would shrink 3.5% this year, Bloomberg
discloses.

The central bank in Nicosia said on March 30 that under the
agreement reached for the country's banks, 40 percent of deposits
above 100,000 euros held at Bank of Cyprus will be temporarily
frozen to ensure the lender's liquidity, and Cyprus Popular will
be shut, Bloomberg recounts.  That money, which won't be used to
recapitalize the lender, will receive interest of 10 basis points
above current levels and will be released "within a short time
frame," the central bank, as cited by Bloomberg, said.

Cyprus eased capital controls on some transactions yesterday,
Bloomberg says, citing an e-mailed copy of the third amendment to
a decree issued on March 29 by the Finance Ministry.  The decree,
which will apply for two days, allows financial transactions of
up to EUR25,000 a day to be carried out without regulatory
approval, compared with EUR5,000 previously, and payments of up
to EUR9,000 a month to be made by check, Bloomberg states.  The
EU said it will continue to monitor the capital controls,
Bloomberg notes.



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FRESENIUS SE: S&P Affirms 'BB+' Corp. Rating; Outlook Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised to
positive from stable its outlook on Germany-based health care
group Fresenius SE & Co. KGaA (FSE) and its subsidiary, Fresenius
Medical Care AG & Co. KGaA (FME).  At the same time, S&P affirmed
all of its ratings on FSE and FME, including the 'BB+' long-term
corporate credit ratings.

The outlook revision reflects S&P's assessment of FSE's
increasing revenue and EBITDA scale, which it estimates will
reach EUR20 billion and EUR4 billion, respectively, in 2013.  S&P
believes this size, if achieved, will enable the group to
maintain organic growth in the mid-single digits by balancing
stable and mature markets--such as the U.S. and Western Europe--
with highly growing emerging markets.  The positive outlook also
reflects FSE's track record of assimilating sizable acquisitions
and reducing debt relatively quickly because of its strong cash-
generating capacity.

S&P assess the group's business risk profile as "satisfactory,"
reflecting FME's position as the world's largest provider of
products and services for dialysis, FME's integration in FSE, and
FSE's market-leading position in Europe for clinical nutrition
and infusion therapy.  Additional supporting factors include a
recurrent revenue stream owing to the chronic nature of kidney
failure, attractive growth prospects due to favorable demographic
trends, and increasing demand for health care in developing
countries.

Partly mitigating these positive factors is FME's predominant
focus on a single disease area, though the continued
diversification of the remainder of the group through FSE's
subsidiaries offsets this somewhat.

The ratings continue to reflect S&P's assessment of the group's
financial risk profile as "significant," owing to frequent and
primarily debt-financed acquisitions.  However, S&P views the
group's ability to deleverage and generate good free cash flow as
supportive of the ratings.  As such, S&P estimates that FSE's
debt-protection metrics will remain at levels that S&P views as
commensurate with the "significant" assessment.

S&P believes that the group will achieve these metrics by
maintaining, over the medium term, total revenue growth in the
high-single digits, reflecting the solid performance of FSE's
clinical nutrition and intravenous generic business, supported by
growth in emerging markets.  S&P anticipates that the group will
maintain an EBITDA margin of 19%-20% over the short and medium
terms, with pricing pressure (including changes in reimbursement
policies) from established markets--such as the U.S. and Europe--
offset by cost efficiencies and synergies from other parts of the
business.

The outlook revision on FME is in line with that on FSE and also
reflects S&P's assessment of FME's relationship with FSE.  This
includes FSE's significant influence over FME as well as the
nature of their economic relationship (FME accounting for about
50% of FSE's EBITDA).

In S&P's view, the group will continue to diversify its revenue
stream, including benefits from add-on, midsize acquisitions.  In
doing so, S&P anticipates that the group will pursue a financing
strategy that would enable it to maintain debt-protection metrics
in line with its assessment of its financial risk profile as
significant."  Specifically, S&P would view debt to EBITDA of
about 3.5x and FFO to debt above 20% on a sustainable basis as
commensurate with a higher rating.

A positive rating action would be reflective of both FSE's and
FME's long-term financial policies to adhere to these debt-
protection metrics.  S&P's base case assumes revenue growth in
the high-single digits over the medium term.  S&P anticipates
that revenue growth will stem primarily from both FME's and FSE's
strong performance in emerging markets and contributions from
acquired businesses.

Conversely, given the group's operating fundamentals, negative
rating actions would most likely be prompted by decisions from
either FSE or FME to change their deleveraging plans in favor of
faster cash absorption through acquisitions, internal investment,
or shareholder returns.  S&P sees downside from operating
performance as less likely, but it could be triggered if
operating margins deteriorate significantly.  This could occur if
the company is not able to offset pressure from reimbursement
changes, mainly in the U.S., with operating efficiency delivered
by the rest of its business.



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EXCEL MARITIME: In Advanced Restructuring Talks with Lenders
------------------------------------------------------------
Excel Maritime Carriers Ltd. on March 28 disclosed that the
Company is currently in advanced restructuring discussions with
its lenders under its syndicated credit facility, dated as of
April 14, 2008, which include amended amortization schedules and
extension of the facility's maturity.  While such discussions
continue, the Syndicate Lenders have agreed to forbear from
exercising their rights in connection with the principal
installments that have become due in the current fiscal year,
through April 30, 2013.  The Company's access to the escrowed
funds to fund its equity raising commitment has been similarly
extended to April 30, 2013.  The Company is in similar
discussions with its lenders under its bilateral credit
facilities.  To date, the Company has not obtained a forbearance
from its lenders with respect to other, non-payment related,
defaults under its syndicated and bilateral credit facilities.
There can be no assurance that the Company will be able to reach
an agreement with its lenders and other creditors on such
restructuring.  Also, the ultimate accounting impact of the
restructuring is unknown and will be determined once an agreement
on the final terms of such restructuring has been reached.

In addition, three of the vessels that were employed on bareboat
charter have been redelivered to their respective owners for an
amount of up to US$6.0 million payable in cash or in stock up to
December 2017, in the latter case at the market price on the date
of the stock's issuance in 2017.  The remaining four vessels that
were employed on bareboat charter have been redelivered to their
respective owners, with the claims of the parties being the
subject of arbitration.

The disclosure was made in the Company's earnings release for the
second half and year Ended December 31, 2012, a copy of which is
available for free at http://is.gd/9X6UJo

                       About Excel Maritime

Based in Athens, Greece, Excel Maritime Carriers Ltd. --
http://www.excelmaritime.com/-- is an owner and operator of dry
bulk carriers and a provider of worldwide seaborne transportation
services for dry bulk cargoes, such as iron ore, coal and grains,
as well as bauxite, fertilizers and steel products.  Excel owns a
fleet of 40 vessels and, together with 7 Panamax vessels under
bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax,
21 Panamax, 2 Supramax and 5 Handymax vessels) with a total
carrying capacity of approximately 3.9 million DWT.  Excel Class
A common shares have been listed since September 15, 2005 on the
New York Stock Exchange (NYSE) under the symbol EXM and, prior to
that date, were listed on the American Stock Exchange (AMEX)
since 1998.


* GREECE: To Extend Recapitalization Deadline Until End of May
--------------------------------------------------------------
Renee Maltezou and Harry Papachristou at Reuters report that
Greek central bank chief George Provopoulos said on Monday Greece
will extend a deadline for the recapitalization of its banks by a
few weeks, possibly until the end of May.

Greek banks, which are being recapitalized with funds from the
country's latest EU/IMF bailout, have been lobbying for the terms
of the recapitalization scheme to be sweetened and also sought an
extension to an end-April deadline for the plan, Reuters relates.

The scheme aims to restore the solvency of the country's top four
lenders, National Bank, Alpha bank, Piraeus bank and Eurobank,
Reuters discloses.

Mr. Provopoulos confirmed that Greece's foreign lenders were
concerned about National Bank's takeover of Eurobank, Reuters
notes.

Bankers told Reuters on Saturday that the lenders had raised
issues concerning the size of the merged entity relative to
Greece's gross domestic product (GDP) and the banking sector as a
whole.

The combined NBG-Eurobank group would have assets of EUR170
billion (GBP143.4 billion), almost the size of Greece's 190
billion GDP and 36% of total deposits in the country's banks,
Reuters states.

"They don't like the idea that such a big lender will be
created," Reuters quotes Mr. Provopoulos as saying.  "There is
concern that if private shareholders are not found, it will go
under state control."

However, asked if the merger should be undone, he replied: "No,
it shouldn't."

Officials from the European Union, the European Central Bank and
the International Monetary Fund are due in Athens this week to
resume an inspection visit and talks on key issues, including the
bank recapitalization and public-sector layoffs, Reuters relates.



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OAK HILL: S&P Affirms 'BB' Rating on Class E Def Notes
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
Oak Hill European Credit Partners II PLC's class VFN, A-2, A-3,
A-4, A-5, B Def, C-1 Def, C-2 Def, D def, E def, and R Combo
notes.

The rating actions follow S&P's assessment of the transaction's
performance, using data from the trustee report (dated Feb. 1,
2013), and its credit and cash flow analysis.  S&P has taken into
account recent developments in the transaction and has reviewed
it under its relevant criteria.

Since S&P's previous review of the transaction in June 2012, it
has observed an overall negative credit migration in the
underlying portfolio and an increase in the transaction's
weighted-average life to 4.45 years from 3.90 years.  In
particular, the proportion of assets in the 'CCC' category (rated
'CCC+', 'CCC', or 'CCC-') has increased to 2.57% from 1.57%.
These factors have been detrimental to the transaction and has
increased its scenario default rates (SDRs) across all rating
levels.

Over the same period, S&P has also observed a sizeable increase
in the portfolio's weighted-average spread to 4.15% from 3.57%.
This has had a beneficial effect in S&P's cash flow analysis.

In addition, the proportion of defaulted assets (rated 'CC', 'C',
'SD' [selective default], or 'D') has decreased to 0.00% from
0.87%.

S&P has subjected the transaction's capital structure to a cash
flow analysis, to determine the break-even default rate for each
rated class at each rating level.  S&P incorporated various cash
flow stress scenarios using its standard default patterns,
levels, and timings, in conjunction with different foreign
exchange and interest rate stress scenarios.

Following S&P's credit and cash flow analysis, it has affirmed
its ratings on all rated classes of notes in this transaction.
This reflects the transaction's relatively stable performance
since S&P's June 2012 review.

Note that the class A-2, A-3, and A-5 notes are rated at the same
level as the class VFN and A-4 notes, although the class A-2, A-
3, and A-5 are subordinated to the class VFN and A-4 notes in the
priority of payments.  At closing, all of these notes were
assigned a 'AAA (sf)' rating, and all of them are now rated
'AA+ (sf)'.

Oak Hill European Credit Partners II is a cash flow
collateralized loan obligation (CLO) transaction, backed
primarily by leveraged loans to speculative-grade corporate
firms.  Geographically, the portfolio is mainly concentrated in
the U.S., Germany, France, the Netherlands, and the U.K., which
together account for about 75% of the portfolio.  Oak Hill
European Credit Partners II closed in June 2007 and is managed by
Oak Hill Advisors (Europe), LLP.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Oak Hill European Credit Partners II PLC
EUR459.9 Million, GBP14 Million Senior Secured and Deferrable
Floating-Rate and Subordinated Notes

Class       Rating

Ratings Affirmed

VFN         AA+ (sf)
A-2         AA+ (sf)
A-3         AA+ (sf)
A-4         AA+ (sf)
A-5         AA+ (sf)
B Def       AA- (sf)
C-1 Def     A (sf)
C-2 Def     A (sf)
D Def       BBB+ (sf)
E Def       BB (sf)
R Combo     BBB+ (sf)


TAURUS CMBS: S&P Lowers Rating on Class C Notes to 'D(sf)'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Taurus CMBS (Pan-Europe) 2006-3 PLC's class A, B, and C notes.
At the same time, S&P has affirmed its 'D (sf)' rating on the
class D notes.

The rating actions follow S&P's review of the credit quality of
the pool's two remaining underlying loans under its updated
criteria for rating European commercial mortgage-backed
securities (CMBS) transactions.

         THE TRIUMPH LOAN (72% OF THE POOL BY LOAN BALANCE)

The loan has an outstanding balance of EUR52.8 million and
represents the senior portion within a whole loan.  The
subordinated portion of the whole loan does not form part of this
transaction.

The servicer transferred the loan to special servicing because
the borrower failed to repay the whole loan balance at maturity
(on Jan. 30, 2013).  The servicer has also entered into a
temporary standstill agreement with the borrower for three
months.

This loan is secured by a multi-tenanted single asset located in
Markisches Viertel (northern Berlin), which is primarily used for
retail purposes.  The occupancy rate has decreased to 69% from
91% at closing.  The top five tenants account for only 19% of the
property's overall income.  The property's weighted-average lease
term is 5.2 years.

The servicer reported a securitized loan-to-value (LTV) ratio of
72% (based on a December 2010 valuation), and a securitized
interest coverage ratio (ICR) of 1.98x.

Although S&P's base case scenario currently shows no losses,
further market value decline would likely result in losses, in
its view.

        THE SOUDRONIC LOAN (28% OF THE POOL BY LOAN BALANCE)

The loan has an outstanding balance of CHF32.7 million and
represents the senior portion within a whole loan.  The
subordinated portion of the whole loan does not form part of this
transaction.

The whole loan is secured by a property containing several
buildings located in the industrial zone of Bergdietikon, Zurich.
The property comprises 10 detached light industrial/office
buildings constructed over various stages between 1959 and 2003.
The underlying asset is generally of average quality, in S&P's
opinion.

The property is fully occupied and is the headquarters of
Soudronic AG, a Swiss company specializing in metal packaging.
The lease expires on Dec. 31, 2020, with a further extension
option of 10 years.  S&P do not rate the tenant.

The whole loan matures on April 8, 2013.  S&P understands that
the servicer is currently discussing the impending loan maturity
with the borrower.

The servicer reported a securitized LTV ratio of 66% (based on an
August 2010 valuation), and a securitized ICR of 2.47x.

S&P has assumed losses under its base case scenario.

                          LIQUIDITY RISK

The February 2013 cash manager report shows that the issuer
failed to pay the interest due under the notes on the February
2013 interest payment date (IPD).  The class B, C, and D notes
accrued a cumulative interest shortfall amount of EUR132,839,
compared with EUR96,396 on the November 2012 IPD.

The earlier repayment of five of the seven initial loans caused a
spread compression between the two remaining loans and the
remaining notes.  Although the two remaining loans pay full
interest, the weighted-average cost of the remaining notes
(including the class X1 and X2 notes) exceeded the weighted-
average loan coupon on the February 2013 IPD.  In S&P's opinion,
the payment of ordinary but nonrecurring fees due to third
parties has further exacerbated the amount of interest
shortfalls, as such payments were not spread over several
quarters.

S&P understands from the reporting agent that the transaction's
excess spread, if any, is not available to cover overdue interest
under the class A to D notes.  Instead, the issuer distributes
excess spread to the class X1 and X2 noteholders.

S&P's ratings address timely payment of interest, payable
quarterly in arrears, and payment of principal no later than the
legal final maturity date (in May 2015).

In S&P's view, the class A, B, and C notes' creditworthiness has
deteriorated because it considers the available credit
enhancement to be insufficient to mitigate the risks of losses
from the remaining underlying loan pool and liquidity risks at
the currently assigned rating levels.

S&P has lowered to 'BBB- (sf)' from 'A- (sf)' its rating on the
class A notes because it considers the available credit
enhancement to be insufficient to cover asset-credit and
liquidity risks at the currently assigned rating level.  Given
the interest shortfall on the class B notes, the class A notes
have become more vulnerable to cash flow disruptions, in S&P's
opinion.

S&P has lowered to 'B- (sf)' from 'B+ (sf)' its rating on the
class B notes because unpaid interest was deferred on the
February 2013 IPD.  In accordance with S&P's criteria for rating
U.S. CMBS in the face of interest shortfalls, it has not lowered
to 'D (sf)' its rating on the class B notes because the existing
shortfall is minor and would likely be repaid (at the class C and
D notes' expense), in S&P's view.  However, continuing interest
shortfalls on this class of notes could lead S&P to lower its
rating to 'D (sf)'.

S&P has lowered to 'D (sf)' from 'CCC- (sf)' its rating on the
class C notes because of its vulnerability to losses under its
base case scenario and because it experienced an interest
shortfall on the January 2013 IPD.

S&P has affirmed its 'D (sf)' rating on the class D notes because
it is highly vulnerable to principal losses under its base case
scenario and it continues to experience interest shortfalls.

Taurus CMBS (Pan-Europe) 2006-3 closed in November 2006 with a
note balance of CHF0.1 million and EUR447.75 million.  The
underlying pool initially held seven loans secured on real estate
assets in Switzerland, France, and Germany.  On the February 2013
IPD, the Soudronic and Triumph loans remained outstanding, and
the outstanding note balance had decreased to CHF0.1 million and
EUR73.4 million, respectively.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class            Rating
           To              From

Taurus CMBS (Pan-Europe) 2006-3 PLC
CHF0.1 Million, EUR447.75 Million Commercial Mortgage-Backed
Floating-Rate Notes

Ratings Lowered

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

Rating Affirmed

D          D (sf)



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


ELEX ALPHA: S&P Affirms 'B+' Rating on Class E Notes
----------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
eleX Alpha S.A.'s class B and C notes.  At the same time, S&P has
affirmed its ratings on the class A-1, A-2, D, and E notes.

The rating actions follow S&P's assessment of the transaction's
performance, using data from the trustee report dated Jan. 25,
2013, and S&P's credit and cash flow analysis.  S&P has taken
into account recent developments in the transaction and has
applied its 2012 counterparty criteria.

Since S&P's previous rating action on Nov. 8, 2011, it has
observed a slight decrease in the aggregate collateral balance
due to defaults in the underlying portfolio.

The transaction is not amortizing as the coverage tests are all
passing, but its reinvestment period just ended on the latest
interest payment date on March 21, 2013.  As a result, the credit
enhancement for all classes of notes has marginally decreased.

Since S&P's previous review, its analysis indicates that the
weighted-average spread has increased to 3.92% from 3.33% of the
portfolio, and the portfolio's credit quality has worsened
overall.  The balance of assets that S&P considers as defaulted
(rated 'CC', 'C', 'SD' [selective default], or 'D') has
significantly increased to 5.05% from 0.72% of the portfolio,
while the assets rated in the 'CCC' category (rated 'CCC+',
'CCC', or 'CCC-') have slightly decreased to 5.50% from 5.85% of
the portfolio.

S&P has subjected the capital structure to its cash flow
analysis, based on the methodology and assumptions outlined in
its 2009 collateralized debt obligation (CDO) criteria, to
determine the break-even default rate for each rated class.

S&P used the reported portfolio balance that it considered to be
performing, the principal cash balance, the current weighted-
average spread, and the weighted-average recovery rates that S&P
considered to be appropriate.  S&P incorporated various cash flow
stress scenarios using various default patterns, levels, and
timings for each liability rating category, in conjunction with
different interest rate stress scenarios.

S&P has observed that British pound sterling-denominated assets
currently comprise 16.57% of the portfolio.  These assets are
naturally hedged by the class A-1 notes' sterling-denominated
liabilities.  Currency options with Barclays Bank PLC hedge any
mismatches if those assets default.

S&P has also observed that U.S. dollar-denominated assets
comprise 0.95% of the portfolio.  A cross-currency swap agreement
hedges these assets.

S&P's credit and cash flow analysis indicates that the credit
enhancement available to the class B and C notes is now at a
level that is commensurate with higher ratings than S&P
previously assigned.  S&P has therefore raised its ratings on the
class B and C notes.

The credit enhancement for the class A-1, A-2, and D notes is,
according to S&P's analysis, commensurate with its current
ratings on these classes of notes.  S&P has therefore affirmed
its ratings on the class A-1, A-2, and D notes.

S&P's rating on the class E notes is constrained, at the current
rating level, by the application of the largest obligor default
test.  S&P has therefore affirmed its rating on class E.  The
largest obligor default test is a supplemental stress test that
S&P introduced in its 2009 criteria update for corporate CDOs.

S&P has applied its 2012 counterparty criteria and, in its view,
the transaction participants are appropriately rated to support
the ratings on all classes of notes--except for the class A-1, A-
2, and B notes for which the swap counterparty and the option
provider, Barclays Bank PLC (A+/Negative/A-1, only supports
ratings up to 'AA- (sf)' in this transaction.  S&P has therefore
stressed non-euro-denominated assets in 'AA' scenarios and above,
in accordance with its 2012 counterparty criteria.

S&P's analysis shows that class A1 and A-2 notes can only
withstand a 'AA+' stress (instead of 'AAA' in scenarios where S&P
give credit to the foreign exchange options and cross-currency
swap agreements), whereas the class B notes can only pass at 'AA-
' (instead of 'AA' in scenarios where S&P gives credit to the
foreign exchange options and cross-currency swap agreements).

eleX Alpha is a cash flow collateralized loan obligation (CLO)
transaction that securitizes loans to primarily speculative-grade
corporate firms.  It closed in December 2006 and is managed by
DWS Finanz-Service GmbH.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class            Rating
           To              From

eleX Alpha S.A.
EUR300 Million Senior Secured Floating-Rate Notes

Ratings Raised

B          AA- (sf)        A+ (sf)
C          A (sf)          A- (sf)

Ratings Affirmed

A-1        AA+ (sf)
A-2        AA+ (sf)
D          BB+ (sf)
E          B+ (sf)



=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


* SERBIA: S&P Affirms 'BB-/B' Credit Ratings; Outlook Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed the long- and short-
term foreign and local currency sovereign credit ratings on the
Republic of Serbia at 'BB-/B'.  The outlook remains negative.
The transfer and convertibility (T&C) assessment is 'BB-'.

The ratings on Serbia are constrained by S&P's view of potential
financing challenges in light of stubbornly high fiscal and
external deficits.  Limited monetary flexibility--given high
euroization and a mixed track record of price stability--is also
a ratings weakness.  The ratings are supported by the economy's
growth potential, stemming from its educated labor force and the
prospect of EU membership.

In 2008-2011, the basic balance (the current account deficit
excluding net FDI inflows) declined from 16% of GDP to just over
3%.  However, last year it increased again to 10%.  This renewed
external deterioration partly reflects the sequence of FIAT's
investments in Serbia's auto sector; machinery imports were
booked in 2011-2012, whereas new auto exports came on line in
late 2012, and are expected to pick up during 2013.  S&P projects
that Serbian exports of goods and services will hit an all-time
high of 45% of GDP this year, up from 31% five years ago.  While
the import component remains elevated, S&P expects Serbia's
substantial merchandise trade deficit to gradually decline from
an estimated 17% of GDP this year.

In contrast to 2005-2009, when foreign parent banks financed most
of Serbia's high current account deficits (that is, they financed
a consumption boom), in 2010-2012 the government assumed the role
of external borrower.  Consequently, over the last four years S&P
estimates general government debt will have increased to 55% of
GDP by end-2013 from 25% of GDP (direct general government debt
not including guarantees issued on behalf of SOEs and local
governments).  Over 80% of government debt is foreign-currency
denominated or indexed rather than being in local currency, and
is unhedged.

The government has announced ambitious plans to reduce the
headline general government deficit from 6.7% of GDP to close to
3.6% this year, largely on below-inflation expenditure and
revenue increases.  However, S&P expects the depreciating
currency will keep generating debt increases above the headline
deficit.  At the same time, S&P thinks that the government will
make progress in cutting back the primary deficit to below 1% of
GDP by 2015 from 4.5% in 2012, and that fiscal tightening and
improved competitiveness will lower external deficits.  Risks to
the government's aims include Serbia's track record of increasing
current expenditures above inflation ahead of elections.
Although elections are not due until 2016, pressure for early
elections could increase given that the most popular party, the
Serbian Progressive Party (SNS), is interested in leading the
coalition, which is currently led by the smaller coalition
member, the Socialist Party of Serbia (SPS).  More fundamental
reforms to budgetary policy seem unlikely.  For example, there
appear to be no plans to restructure the budget to reduce the
dominance of current spending (especially on public-sector
personnel).

While last year's GDP contraction of 2% largely reflected
negative single events--a severe regional drought and the closure
of the Smederevo steel plant--other drags on growth seem to us to
be chronic.  For instance, since 2009 GDP has suffered from
recurring declines in net parent-bank financing.  Also, S&P
expects planned fiscal consolidation for 2013-2015 will shave off
over 1% of GDP on average.  As a result, S&P believes medium-term
growth drivers will be difficult to identify unless the
government is more strenuous in its reforms to the labor market
and public sector.  S&P thinks that Serbia's eventual EU
membership could motivate governments to facilitate private-
sector competitiveness -- but historically the prospect of EU
entry has not in all cases led to a reduction in the government
intervention in the economy.  In any case, the benefits of EU
entry seem unlikely to materialize for several years and
therefore are unlikely to reverse currently very high
unemployment of about 26.0% (14.4% in 2008).

Serbia's monetary policy flexibility is constrained by high
euroization.  The dinar is used largely for transactional
purposes, and inflation has not been in the target range of 2.5%-
5.5% on an annual basis for many years.

The negative rating outlook reflects S&P's view of the potential
for a downgrade if it sees a significant deterioration in the
fiscal or external positions, driven either by external shocks or
domestic policy inaction.

An IMF agreement, which could provide for balance of payments
support and help entrench fiscal and structural reforms, would
contribute to improvements in debt stability and growth
prospects, potentially leading the ratings to stabilize at the
current level.



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


NORTHLAND RESOURCES: In Default of Disclosure Obligations
---------------------------------------------------------
Northland Resources S.A. on March 28 disclosed that it expects
the Ontario Securities Commission will note the Company in
default of its continuous disclosure obligations under Ontario
securities law due to the Company not filing by April 2, 2013,
its audited financial statements and associated management
discussion and analysis for the fiscal year ended December 31,
2012.

Since January 2013, Northland has faced serious liquidity issues.
During this period the Company has published its Q4 2012
unaudited interim condensed financial statements.  However, since
the negotiations with potential investors are still ongoing,
management of the Company is currently not in a position to
evaluate the potential impacts of these negotiations on the
Annual Financial Statements and to finalize its assessment of the
going concern assumption.  As a result, the Company is not in the
position to file its Audited Annual Financial Statements and MD&A
by April 2, 2013.

The Company expects that the OSC will note that the Company will
remain in default until it files the Annual Financial Statements
and MD&A.  To that end and to rectify the Company's financial
situation, the Company is in the process of raising additional
financing outside of Canada.  The Company expects to have
completed the raise of additional financing and file the Annual
Financial Statements and MD&A by April 30, 2013.  This timing is
in compliance with the deadline for filing annual audited
financial statements under the Norwegian Securities Trading Act
and is also in compliance with the pan-European requirements for
financial reporting applicable to companies listed within the
European Economic Area, as set out in Transparency Directive
2004/109/EC and implemented in both Norway and Luxembourg.

Although the Company is still working on securing its long term
financing, the Company announced on March 22, 2013 that its bond-
holders and major suppliers agreed to provide a short term
financing totaling US$20 million, of which US$10 million comes
from the debt service account of the bond trustee, with an
additional US$10 million being provided as a bridge facility by
major suppliers.  The funding received is expected to allow the
Company to continue its operations at the present level and the
Company believes it will realistically be able to resolve its
long term financing solution during April 2013.

In the meantime, the Company has submitted an application to the
Canadian securities regulatory authorities pursuant to National
Policy 12-203 - Cease Trade Orders for Continuous Disclosure
Defaults ("NP 12-203") requesting that a management cease trade
order be imposed upon the officers of the Company in lieu of a
general cease trade order in respect of the Company's continuous
disclosure default.

Subsequently, the Company intends to satisfy the alternative
information guidelines prescribed by NP 12-203 by issuing bi-
weekly default status reports in the form of news releases so
long as it remains in default of continuous disclosure
requirements.

Northland is a producer of iron ore concentrate, with a portfolio
of production, development and exploration mines and projects in
northern Sweden and Finland.  The first construction phase of the
Kaunisvaara project is complete and production ramp-up started in
November 2012.  The Company produces high-grade, high-quality
magnetite iron concentrate in Kaunisvaara, Sweden, where the
Company will exploit two magnetite iron ore deposits, Tapuli and
Sahavaara.  Northland has entered into off-take contracts with
three partners for the entire production from the Kaunisvaara
project over the next seven to ten years.  The Company is also
preparing a Definitive Feasibility Study ("DFS") for its
Hannukainen Iron Oxide Copper Gold ("IOCG") project in Kolari,
northern Finland and for the Pellivuoma deposit, which is located
15 km from the Kaunisvaara processing plant.



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


DEUTSCHE PFANDBRIEFBANK: S&P Cuts Rating on Cl. E Notes to 'CCC-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class A1+, A2, B, C, D, and E notes in Deutsche
Pfandbriefbank AG's Estate UK-3 commercial mortgage-backed
securities (CMBS) transaction.

The rating actions follow S&P's review of the credit quality of
the underlying loans in Estate UK-3 under its updated criteria
for rating European CMBS transactions.

                     LOAN 3 (46% OF THE POOL)

The securitized loan has an outstanding balance of
EUR175.7 million.  There is additional debt of EUR63.7 million,
which does not form part of this transaction.  The loan is
interest-only and matures in July 2015.

Loan 3 is secured by three U.K. shopping centers in Cardiff,
Darlington, and Wakefield.  The portfolio is 89.03% occupied by
various retail operators.  The largest tenant does not account
for more than 10% of the overall income.

In March 2013, the issuer reported a securitized loan-to-value
(LTV) ratio of 153.18%, based on a May 2010 valuation, and a
securitized interest coverage ratio of 1.38x.

The securitized loan is unlikely to repay in full, in our
opinion.

                      LOAN 9 (16% OF THE POOL)

The loan (GBP60.0 million) is secured by a mixed-use property in
west London (on the southern side of Kensington High Street).
The loan has scheduled amortization and matures in January 2019.

In March 2013, the issuer reported an LTV ratio of 71.09%, based
on a February 2009 valuation, and a debt service coverage ratio
of 1.44x.

The property comprises approximately 80% retail accommodation and
approximately 20% offices.  The occupancy rate is currently
97.57%.

S&P do not expect losses on the loan under our base case
scenario.

                     LOAN 13 (14% OF THE POOL)

The loan (GBP53.8 million) represents a pari passu piece in a
syndicated loan.  The other pari passu piece does not form part
of the securitization.  The whole loan has scheduled amortization
and matures in December 2019.

The whole loan is secured by a total of 85 car dealerships and
showrooms situated in various U.K. locations.  A subsidiary of a
car manufacturer, rated A-/Positive/A-2, occupies the properties.
The leases expire in October 2028.

In March 2013, the issuer reported a securitized LTV ratio of
40.37%, based on a September 2010 valuation, and a securitized
debt service coverage ratio of 2.17x.

S&P do not expect losses on the loan under its base case
scenario.

                  REMAINING LOANS (24% OF THE POOL)

The four remaining loans account for about 24% of the remaining
pool.  The loans are secured by 15 mixed-use properties located
through the U.K.

S&P do not expect losses on these loans under its base case
scenario.

                          RATING ACTIONS

In S&P's view, the class A1+, A2, B, C, D, and E notes'
creditworthiness has deteriorated.  S&P do not consider the
available credit enhancement to be sufficient to mitigate the
risks of losses from the remaining underlying loan pool, at the
currently assigned rating levels.  S&P has therefore lowered its
ratings on these classes of notes.

Estate UK-3 is a synthetic CMBS transaction. Hypo Real Estate
Bank International (now known as Deutsche Pfandbriefbank) issued
the notes in February 2007.  The notes are backed by seven loans
(down from 13 at closing), which in turn are secured on 104
commercial properties, including retail (53.23% by allocated loan
amount) and offices (14.50% by allocated loan amount).  The
properties are spread throughout the U.K., mainly in Yorkshire
and Humberside (23.96% by allocated loan amount), northeast
England (18.59% by allocated loan amount), and London (18.15% by
allocated loan amount).

S&P will continue to monitor the transaction's performance, with
the performance of Loan 3 in its view likely to have the largest
influence on the risk it sees associated with this transaction.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class               Rating
            To                  From

Deutsche Pfandbriefbank AG
113.68 Million Floating-Rate Amortizing Credit-Linked Notes
(Estate UK-3)

Ratings Lowered

A1+         BBB (sf)            A+ (sf)
A2          B (sf)              BB+ (sf)
B           B- (sf)             B (sf)
C           CCC+ (sf)           B (sf)
D           CCC (sf)            B (sf)
E           CCC- (sf)           B (sf)


LAIKI BANK: PRA Safeguards Deposits of UK Customers
---------------------------------------------------
Patrick Jenkins at The Financial Times reports that the UK's new
financial regulator, the Prudential Regulation Authority, has
wasted no time exercising its powers, announcing on Tuesday --
its first official day in existence -- that it had overseen a
deal to safeguard the deposits of customers with Cyprus's failed
bank Laiki.

According to the FT, the PRA -- a unit of the Bank of England
which inherited powers from the now disbanded Financial Services
Authority to regulate banks' safety -- said depositors with
Laiki's UK operation would have their money automatically
transferred to Bank of Cyprus UK.

Bank of Cyprus, the island's biggest bank, operates in the UK via
a subsidiary, with deposits covered by Britain's Financial
Services Compensation Scheme, which guarantees up to GBP85,000
per depositor, the FT discloses.

The PRA said the agreement struck with the UK operations of the
Cypriot banks would not affect access to bank accounts, the FT
relates.

"All customers who had an account with Laiki Bank UK will be able
to access funds as normal and do not need to do anything," the FT
quotes the regulator as saying.

Bank of Cyprus said about 15,000 Laiki customers in the UK, with
combined deposits of GBP270 million, would be covered by the
deal, according to the FT.

Overdraft arrangements are not part of the deal, the FT notes.
Mortgage and loan customers will be dealt with via Bank of Cyprus
in Cyprus, the FT says.

Laiki was founded in 1901 as the Popular Savings Bank Limassol.


METALTRAX GROUP: Plans to Appoint Administrators; Reviews Options
-----------------------------------------------------------------
Martin Strydom at The Telegraph reports that Metalrax Group said
on Tuesday it is preparing to appoint administrators, putting
hundreds of jobs at risk.

According to the Telegraph, the company said its working capital
had "significantly" worsened and attempts to refinance the group
had failed.

"It has therefore become evident that the only course of action
available for the board is to place Metalrax and certain of its
subsidiaries into administration," the Telegraph quotes Metalrax
Group as saying in a statement.

Metalrax, as cited by the Telegraph, said it had struggled with
performance in its Consumer Durables division since the loss of a
major contract in July last year and the business was currently
trading "materially below expectations".

The company said it planned to appoint KPMG as joint
administrators, the Telegraph relates.

KPMG, the Telegraph says, has been assisting the board with a
review of its strategic options, including the sale of companies
or assets.

On Tuesday, the group asked for trading in its shares to be
suspended on AIM, pending clarification of its financial
position, the Telegraph notes.

Metalrax Group is an Aim-listed maker of bakeware and kitchen
accessories.  The company employs 469 staff, according to its
2011 Report and Accounts.


                            *********

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

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


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