TCREUR_Public/130621.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, June 21, 2013, Vol. 14, No. 122

                            Headlines


C Y P R U S

OCEAN RIG: Moody's Rates Proposed $1.8-Bil Debt at '(P)Ba2'


G E R M A N Y

ALBA GROUP: Moody's Withdraws 'B1' Corporate Family Rating
BAYERNLB CAPITAL: Fitch Affirms 'CCC' Capital Instrument Rating
KION: IPO Completion Could Raise Moody's Ratings to 'Ba3'
* Moody's Sees Slow Down in Reserve Releases for EUR insurers


G R E E C E

DRILLSHIPS FINANCING: S&P Assigns 'B+' Rating to US$900MM Loan
* GREECE: ERT Shutdown Threatens to Fracture Government


I R E L A N D

* IRELAND: IMF Approves Tenth Disbursal Under Bailout Program


I T A L Y

* Moody's Notes Deteriorating Performance of Italian Leasing ABS


K A Z A K H S T A N

ALFA BANK: Fitch Assigns 'B+' Long-Term Issuer Default Rating


L A T V I A

LATVIJAS KRAJBANKA: B2 Holding Takes Over Consumer Loan Portfolio


N E T H E R L A N D S

MAGYAR TELECOM: S&P Lowers Corporate Credit Rating to 'CC'


P O L A N D

* POLAND: Corporate Bankruptcies Up 7% in First Five Months


S L O V E N I A

* SLOVENIA: DUTB to Get First Batch of Non-Performing Loans


S P A I N

CODERE SA: Moody's Affirms 'Caa3' CFR; Outlook Still Negative


U N I T E D   K I N G D O M

DUNFERMLINE ATHLETIC: Administrator to Proceed with CVA Offer
DWELL: Ceases Trading After No Buyer Found
EMPLOY-E: In Liquidation; Owes GBP58 Million to HMRC
INFINIS PLC: Fitch Assigns 'BB-' Long-Term Issuer Default Rating
NEMUS II: Fitch Lowers Rating on Class F Notes to 'CC'

* UK Office Charges Trader in LIBOR Benchmark Rate Manipulation


X X X X X X X X

* Bond Market Access Important for Liquidity Quality in EMEA
BOOK REVIEW: Jacob Streider's Jacob Fugger the Rich


                            *********



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C Y P R U S
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OCEAN RIG: Moody's Rates Proposed $1.8-Bil Debt at '(P)Ba2'
-----------------------------------------------------------
Moody's Investors Service assigned provisional (P)B2 ratings to
the proposed three-year US$900 million senior secured term loan
and proposed seven-year US$900 million senior secured term loan,
with Drillships Financing Holding Inc. as borrower, a subsidiary
of Ocean Rig UDW Inc. Moody's has also affirmed Ocean Rig's B3
corporate family rating, Caa1-PD probability of default rating
and Caa3 rating on the senior unsecured notes, as well as the B3
rating on the secured notes issued by Drill Rigs Holdings Inc.
The outlook on all ratings is stable.

Moody's issues provisional ratings in advance of the final sale
of securities. Upon closing of the transaction and 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:

The rating actions follow the announcement by Ocean Rig of a
planned debt refinancing. This comprises borrowing under the new
term loans to fully repay the US$667 million and US$853 million
outstanding on the existing Nordea and Deutsche Bank senior
secured credit facilities, respectively. Excess cash from the
refinancing will be used for financing offshore drilling rigs.

The (P)B2 ratings on the new secured term loans, one notch above
the CFR, reflects that they will be secured by first liens on the
newest operational vessels, the Corcovado, Olympia, Poseidon and
Mykonos drillships, as well as substantially all other assets of
Drillships except such items as drilling contracts. They also
have a parent guarantee from Ocean Rig, until the creation of a
master limited partnership (MLP). Moody's notes this could be
credit negative depending on the terms and capital structure
associated with the MLP. The new term loan documentation provides
for the establishment of an MLP and proposes limiting leverage to
be no greater than 5 to 1 or the value to loan ratio to be no
less than 2 to 1. The new loans will have standard high-yield
incurrence covenants including those on restricted payments, debt
incurrence and liens but no financial covenants.

Although Q1 2013 results were better than Moody's expected, the
B3 CFR continues to reflect Ocean Rig's very high adjusted
leverage, at around 9.0x at Q1 2013, with no deleveraging this
year as it takes delivery of three new drillships. This is
exacerbated by the capital intensive, highly cyclical nature of
the offshore contract drilling sector, a small operational asset
base with only six rigs (although four advanced rigs are under
construction) and low diversification. The rating also considers
the increased costs and lengthy acceptance testing associated
with operating in the ultra-deepwater (UDW) market as well as
Moody's view of weak covenant headroom going forward, despite a
strong UDW market.

The B3 CFR also incorporates Ocean Rig's young fleet, focused on
UDW drilling that is expected to show resilient secular growth,
and the strong revenue visibility over the next several years as
demonstrated by its substantial US$5.0 billion contract backlog
that gives us confidence in the company achieving substantial
deleveraging in 2014.

Moody's views Ocean Rig's liquidity as sufficient for its near-
term requirements, although it has concerns over future covenant
headroom. The proposed refinancing improves liquidity by
providing access to approximately US$379 million in additional
unrestricted cash, removing near-term liquidity risks. It also
removes the maintenance covenants on the refinanced loans,
however the US$1.35 billion syndicated loan has maintenance
covenants that will be tested when it is drawn in the second half
of this year. As such, Moody's continues to view headroom under
the covenants as tight going forward.

The stable outlook reflects Moody's view of a positive operating
environment outlook in UDW, supported by the company's contract
backlog. It also assumes that liquidity and covenants will pose
no issues for the company.

The company's high leverage dampens the prospect of an early
upgrade to the CFR. However, the CFR could face positive pressure
if inter alia, the construction of the new rigs are completed on
time and to budget, and adjusted gross debt to EBITDA is
materially and sustainably reduced below 6x. Conversely, the CFR
could face downward pressure if adjusted gross debt to EBITDA
does not continue to fall on a sustained basis or if the
conditions for a stable outlook are not met.

The principal methodology used in these ratings was the Global
Oilfield Services Rating Methodology published in December 2009.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Incorporated in the Marshall Islands, but headquartered in
Cyprus, Ocean Rig UDW Inc. is an oilfield services company
focused on ultra-deepwater exploration and production drilling.
It is listed on the NASDAQ, with a market capitalization of
around US$2 billion and is majority-owned by DryShips Inc., a US-
listed drybulk shipping and tanker company.



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G E R M A N Y
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ALBA GROUP: Moody's Withdraws 'B1' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has withdrawn the B1 corporate family
rating (CFR) and the B1-PD probability of default rating (PDR) as
well as the B3 rating on the EUR203 million senior unsecured
notes due 2018 of ALBA Group plc & Co. KG for business reasons.

Ratings Rationale:

Moody's has withdrawn the ratings for its own business reasons.
The last rating action on ALBA Group was taken on November 8,
2012, when Moody's affirmed ALBA Group's ratings and changed the
outlook to negative.

ALBA Group plc & Co. KG, headquartered in Berlin, is a holding
company for a group focused on waste management, recycling and
environmental services. Axel and Eric Schweitzer, the sons of
ALBA Group's founder, each indirectly own 50% of the capital of
ALBA Group. The group reported consolidated revenues of EUR2.9
billion for FYE December 31, 2012.


BAYERNLB CAPITAL: Fitch Affirms 'CCC' Capital Instrument Rating
---------------------------------------------------------------
Fitch Ratings has affirmed Bayerische Landesbank's and Landesbank
Baden-Wuerttemberg's Long-term Issuer Default Ratings (IDRs) at
'A+' and Landesbank Saar's Long-term IDR at 'A'. The Outlooks on
the Long-term IDRs are Stable.

In addition, the agency has affirmed the Viability Ratings (VR)
of BayernLB and SaarLB at 'bb+' and LBBW at 'bbb-'.

KEY RATING DRIVERS - IDRS, SUPPORT RATING AND SUPPORT RATING
FLOOR

The affirmation of the IDRs at their Support Rating Floors (SRF)
reflects that Fitch's view of the extremely high likelihood of
state support for Landesbanken is unchanged, in light of the
banks' high systemic importance to their local regions as well as
the strategic stake the German federal states hold in their
banks. In addition, the high share of guaranteed funding by the
federal states and funding through German savings banks is
reflected in the Support Ratings of '1'.

At 'A+', BayernLB's and LBBW's SRF and IDR are one notch higher
than SaarLB as Fitch believes that both banks' core business
operations are in Germany's economically strongest regions, with
a strong track record of support provided to their Landesbanken.

RATING SENSITIVITIES - IDRS, SUPPORT RATING AND SUPPORT RATING
FLOOR

The IDRs, the SRF and the rating of the grandfathered debt of all
three banks are sensitive to any change in Fitch's view of the
creditworthiness of the German federal states, underpinned by the
stability of the German solidarity system linking its
creditworthiness to that of the Federal Republic of Germany
(AAA/Stable). They are also sensitive to any change in Fitch's
view of the currently high propensity of the federal states to
support their respective Landesbank.

There is a clear political intention to ultimately reduce
implicit state support for banks in Europe, as demonstrated by a
series of policy and regulatory initiatives aimed at curbing
systemic risk posed by the banking industry. This might result in
Fitch downgrading SRFs in the medium term, although the timing
and degree of any change would depend on developments with
respect to specific jurisdictions.

In this context, Fitch is paying close attention to ongoing
policy discussions around support and 'bail in' for eurozone
banks. Until now, senior creditors in major global banks have
been supported in full, but resolution legislation is developing
quickly and the implementation of creditor 'bail-in' is starting
to make it look more feasible for taxpayers and creditors to
share the burden of supporting banks. This could ultimately also
put pressure on the SRFs of public sector banks in Germany.
However, for German Landesbanken Fitch will also continue to take
into consideration the fact that the federal states will support
their respective Landesbank as a strategic investment.

KEY RATING DRIVERS - VR

The affirmation of the Landesbanken's VRs reflects the banks'
entrenched regional franchise and high degree of co-operation
with the local savings banks. The VRs also take into account the
overall adequate asset quality in light of the sound economic
environment in Germany, as well as their solid funding and
liquidity positions.

However, Fitch considers Landesbanken's profitability as still
modest as it has been supported by a very low level of loan
impairment charges in the past three years. Landesbanken's
performances remain constrained by a high amount of low margin
loans as well as strong competition for its targeted corporate
customer base.

All three Landesbanken's VRs also reflect the risks arising from
their exposure to cyclical industries such as commercial real
estate or the automotive industry. At the same time, the exposure
to peripheral European countries has been significantly managed
down. Fitch views outstanding amounts as manageable as they are
largely concentrated in Spain and Italy.

In Fitch's view, LBBW's future capitalization is more predictable
than BayernLB's and SaarLB's, supporting its higher VR.
BayernLB's capitalization is adequate, with a Fitch core capital
ratio of 10.4% at end-2012. However, Fitch notes that BayernLB
will still need to repay EUR4.1 billion in capital over the next
six years, as requested by the European Commission (EC).

SaarLB's capitalization is particularly weak, in Fitch's view, in
light of the high amount of silent participations of EUR389
million. Fitch views positively the planned conversion of some of
these capital instruments into common equity in accordance with
Capital Requirements Directive IV proposals.

RATING SENSITIVITIES - VR

Downside risk to the banks' VR would most likely be a consequence
of adverse external factors. For example, if the economic outlook
for Germany's economy deteriorates sharply, and the banks' modest
profits could not cover rising impairment charges, absent further
progress in strengthening efficiency and expanding revenues
sources.

At the same time, BayernLB's VR could be upgraded if its
stubbornly high cost base, the high risk provisions arising from
the bank's Hungarian activities and the bank's fair value driven
volatility were reduced. In addition, clarity on the large tail
risk BayernLB faces with regard to its significant exposure to
Hypo Group Alpe Adria, which could impose substantial risk
provisions at end-2013, would be a precondition.

LBBW's VR reflects the progress that has been made in improving
the bank's overall risk profile, notably in deleveraging the
balance sheet. Nonetheless, it also considers the weak but
improving overall profitability and residual concentration risks
on the asset side of the balance sheet. Fitch believes that
LBBW's VR can further improve over the short to medium term. This
would likely be driven by a further reduction in concentration
risks and an improvement in profitability whilst maintaining the
group's sound capital and liquidity profile.

Upside potential for SaarLB's VR would occur if SaarLB manages to
stabilize its recurring profitability after considerable
improvements in 2012. In addition, Fitch would view the
strengthening of its capitalization as a prerequisite, especially
the Fitch core capital ratio in light of a high amount of silent
participations.

KEY RATING DRIVERS - SUBORDINATED DEBT AND OTHER HYBRID
SECURITIES

Landesbanken's subordinated debt instruments are notched from
their IDR, which serves as an anchor rating. This differs from
the VR anchor rating used for most developed market banks,
reflecting Fitch's view that the strategic importance of the
Landesbanken to its state owners would mean that support would
extend to subordinated as well as senior debt if required.

The 'BBB+' subordinated debt rating for BayernLB and LBBW is
three notches below their Long-Term IDRs. One notch captures
their subordination and two notches reflect Fitch's opinion that
there is still modest incremental non-performance risk relative
to the unsubordinated obligations of the issuers. While Fitch
believes the likelihood of support still to be high, there is a
small possibility that the banks' owners may somehow be prevented
from supporting subordinated debt, for example by the EC. There
is some uncertainty about how any future EC state aid approval
process would play out should any extraordinary support from the
banks' state owners be required again. Potential banking union in
Europe also presents a risk that owners may be prevented from
supporting subordinated debt.

The affirmation of BayernLB's hybrid capital instrument, BayernLB
Capital Trust I, is based on Fitch's view that the hybrid
instruments will continue to be non-performing until 2013 and
most likely also in 2014. Fitch does not expect BayernLB to
report sufficient distributable profits to meet the terms of the
instrument for 2013.

RATING SENSITIVITIES - SUBORDINATED DEBT AND OTHER HYBRID
SECURITIES

BayernLB's and LBBW's subordinated debt ratings are sensitive to
any change in their IDRs as the anchor rating or to any
developments, for example with respect to banking union or
resolution legislation that would make it more difficult for
state owners to support subordinated debt.

The 'CCC' rating for BayernLB Capital Trust I's hybrid capital
instruments would be upgraded if these instruments return to
performing status, which Fitch considers unlikely before end-
2014. A further downgrade would become likely if BayernLB
reported significant losses in its unconsolidated financial
accounts, which Fitch views as unlikely.

The rating actions are:

BayernLB

Long-term IDR: affirmed at 'A+'; Stable Outlook
Short-term IDR: affirmed at 'F1+'
Viability Rating: affirmed at 'bb+
Support Rating: affirmed at '1'
Support Rating Floor: affirmed at 'A+'
Senior debt: affirmed at 'A+'/'F1+'
State-guaranteed/grandfathered debt: affirmed at 'AAA'
State-guaranteed/grandfathered market-linked securities:
  affirmed at 'AAAemr'
Senior market-linked securities: affirmed at 'A+ emr'
Subordinated lower Tier II debt: affirmed at 'BBB+'

BayernLB Capital Trust I
Hybrid capital instruments: affirmed at 'CCC'

LBBW:

Long-term IDR affirmed at 'A+'; Outlook Stable
Short-term IDR affirmed at 'F1+'
Viability Rating affirmed at 'bbb-'
Support Rating Floor affirmed at 'A+'
Support Rating affirmed at '1'
Senior debt: affirmed at 'A+'/'F1+'
State-guaranteed/grandfathered debt: affirmed at 'AAA'/'F1+'
State-guaranteed/grandfathered market-linked securities:
  affirmed at 'AAAemr'
Subordinated lower Tier 2 debt: affirmed at 'BBB+'

LBBW Dublin Management GmbH:

Grandfathered Long-term debt affirmed at 'AAA'

Landesbank Saar

Long-term IDR: affirmed at 'A'; Outlook Stable
Short-term IDR: affirmed at 'F1'
Support Rating: affirmed at '1'
Support Rating Floor: affirmed at 'A'
Viability Rating: affirmed at 'bb+'
Short-term debt: affirmed at 'F1'
State-guaranteed/grandfathered debt: affirmed at 'AAA'


KION: IPO Completion Could Raise Moody's Ratings to 'Ba3'
---------------------------------------------------------
Moody's Investors Service might increase Kion's rating by three
notches to Ba3 should the IPO as announced by KION go through as
planned. In the meantime, KION's B3 rating remains on review for
upgrade. Last Friday KION published a prospectus providing
financial details of its planned IPO. KION is seeking to raise
capital via public offer, as well as via increased shareholder
participation from Chinese engineering group Weichai, which
currently holds 25% of KION's share capital. Assuming the
midpoint of the price range given in the prospectus (EUR27 in the
range of EUR24-EUR30), this would lead to EUR450 million proceeds
from the IPO and EUR369 million proceeds from the capital
injection provided by Weichai, which KION would use to repay
outstanding financial debt.

KION intends to repay its C1, C2 and B2 term loans under the
Senior Facilities Agreement (SFA) in full (in total EUR1,079
million outstanding as of March 2013), but it is also considering
partially repaying its fixed-rate notes maturing in 2018 and 2020
up to EUR310 million, as well as 2018 floating-rate notes with a
principal amount of EUR175 million. To the extent the net
proceeds from the public offer and Weichai capital increase are
insufficient for that purpose, KION would use (in whole or in
part) the cash and cash equivalents of KION GROUP AG (previously:
KION Holding 1 GmbH) of EUR193 million (as per end of March
2013), which is currently outside of the restricted group of the
KION group of companies, and funds to be drawn under a new
revolving credit facility (RCF) of up to EUR1,045 million that
KION plans to introduce immediately following the completion of
the offering. The drawings under the new RCF could then be
refinanced by a new bond depending on market conditions.

Assuming that cash at KION GROUP AG (previously: KION Holding 1
GmbH) will be used to reduce KION Material Handling GmbH
(previously: KION Group GmbH's) debt, Moody's calculates that in
the midpoint of the price range the IPO would lead to a decrease
of financial debt of around EUR1 billion, leading to Moody's-
adjusted leverage for 2012 pro-forma for the deconsolidation of
the recently sold hydraulics business and the capital increase of
around 4.7x, compared with 6.7x excluding the assumption of a
successful capital increase. Such a substantial deleveraging
would justify upgrading the CFR by three notches to Ba3.
Following the leverage buy-out in 2006 by an investment group
consisting of KKR and Goldman Sachs, the very high leverage has
been the major constraining factor to the rating, as KION has an
otherwise solid business profile. This includes (1) the size of
its operations as evidenced by revenues of EUR4.7 billion in
2012; (2) the group's strong market position as the world's
second largest forklift truck manufacturer; and (3) KION's
diversified customer base and large share of revenues from fairly
stable service, aftermarket and rental activities (40% in 2012).
Moreover, Moody's believes that KION is well positioned for
future growth in markets outside Europe.

As a part of the transaction, Facility G under the SFA (EUR117
million outstanding as of March 2013), will be converted to
equity at KION GROUP AG (previously: KION Holding 1 GmbH) level.
However, at KION Material Handling (previously: KION Group GmbH)
level, it will effectively be a shareholder loan that will remain
secured but subordinated (second lien) to other term loans under
SFA.

Moody's review on KION's ratings will continue and a conclusion
of the review will be subject to the result of the IPO of KION
GROUP. The review will also focus on the future location of the
corporate family rating for KION, and, subsequently the treatment
of the Facility G under the SFA, which will become an intragroup
loan, should the CFR be moved to the level of the future KION
GROUP AG.

If Facility G would continue to be treated as debt it will only
provide a low loss absorption cushion for the group's first-lien
debt in the event of a potential future default. Therefore, it is
likely that the rating of the senior secured first lien debt will
be aligned with the CFR.

KION, headquartered in Wiesbaden, Germany, produces forklift
trucks and material handling equipment. The group holds the
market-leading position in Europe and ranks second on a global
basis. KION, which was spun off from Linde AG in 2006, has 15
production sites across the world and follows a multi-brand
strategy (with global brands such as Linde and Still, and local
brands such as OM-Still in Italy, Fenwick in France, Baoli in
China, and Voltas in India). In 2012, KION generated revenues of
EUR4.7 billion with a workforce of around 21,000 employees.


* Moody's Sees Slow Down in Reserve Releases for EUR insurers
-------------------------------------------------------------
The pace of reserve releases for non-life European insurers will
continue to slow into 2013 and beyond as the effects of the
general market downturn from 2005-09 continue to play out, says
Moody's Investors Service in a new Special Comment entitled
"European Insurance: Reduced Reserve Releases Will Add to
Profitability Pressures." Seven consecutive years of reserve
releases raises questions as to how much reserve cushioning
remains.

Reserve movements are difficult to predict but are important for
future performance. The extent to which reserves develop in line
with expectations when first set, can have a material bearing on
the future profitability and capital adequacy of (re)insurers.

Moody's says that unfavorable developments in loss reserves can
materially impact profitability, and leverage ratios. The more
that reserve release income is squeezed, the harder European
insurers will need to work to compensate for lower profits
through continued expense reductions and rate increases. However,
Moody's believes that provided the low inflation environment
persists, a repeat of the widespread and severe deterioration in
reserves seen in the early part of the 2000s -- which would be
broadly credit negative -- is unlikely.



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DRILLSHIPS FINANCING: S&P Assigns 'B+' Rating to US$900MM Loan
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B+' issue rating to the proposed US$900 million senior secured
Term Loan B1, due 2020, and the proposed $900 million Term Loan
B2, due 2016, of Drillships Financing Holding Inc., a subsidiary
of offshore drilling company Ocean Rig UDW Inc. (B/Negative/--).
The recovery rating on the proposed loans is '2', indicating
S&P's expectation of substantial (70%-90%) recovery in the event
of a payment default.  The issue and recovery ratings on the
proposed loans are subject to S&P's review of the final
documentation.

At the same time, S&P has affirmed its '3' recovery rating and
'B' issue ratings on Drill Rigs Holdings Inc.'s existing US$800
million senior secured notes, due 2017.  The recovery rating of
'3' reflects S&P's expectation of meaningful (50%-70%) recovery
in the event of a default.  Likewise, S&P's recovery and issue
ratings on the US$500 million senior unsecured notes issued by
Ocean Rig are affirmed at '6' and 'CCC+' respectively.  The
recovery rating of '6' reflects S&P's expectation of negligible
(0%-10%) recovery prospects in the event of a default.

The proceeds of the new loans will refinance the existing
outstanding US$1.5 billion bank facilities, originally taken to
finance the construction of drillships Corcovado, Olympia,
Poseidon, and Mykonos.  Any remaining proceeds will be used for
working capital purposes, fees, and expenses.

The recovery rating on the proposed loans is underpinned by the
loans' collateral.  The security package comprises a first-
ranking pledge over substantially all the assets of the issuer,
Drillships Financing Holding, including the four ultra-deep-water
drillships Corcovado, Olympia, Poseidon, and Mykonos built in
2011, which have a combined market value of approximately US$3.2
billion.  The proposed debt will also benefit from a guarantee
from parent company Ocean Rig and the subsidiaries of Drillships
Financing Holding, as well as a pledge over the shares of
Drillships Financing Holding and its subsidiaries.  After a
potential IPO as a master limited partnership (MLP), Ocean Rig
would no longer be a guarantor, and the share pledges over
Drillships Financing Holding would be released.

The recovery rating is constrained at '2' by S&P's view of
multijurisdictional risk.  The four rigs in the collateral
package are in international waters (currently off the coast of
Brazil and Africa), which makes the realization of this
collateral, if needed, uncertain.

Since drilling contracts are not assignable, they do not form a
part of the collateral package.  However, the earnings from such
contracts -- as well as proceeds from casualty and loss-of-hire
insurance related to the drillships -- are part of the
collateral. S&P understands that the company intends to replace
Term Loan B2 by issuing $900 million senior secured notes under
the same terms and conditions in the near future.

The documentation for the proposed term loans will not include
maintenance financial covenants.  Incurrence of additional debt
will be subject to parent-consolidated interest coverage of 2.0x.
The loan documentation will allow for an additional US$100
million incremental facility Term Loan B1, and an additional
US$100 million carve-out.  For the purpose of S&P's analysis, it
has assumed these will be undrawn.  S&P understands that the loan
documentation allows for the issuance of only US$25 million in
collateral liens.  On completion of the potential MLP IPO,
restricted payments would be subject to a consolidated interest
coverage ratio of 2.0x.  If the ratio is below 2.0x, restricted
payments would then be limited to a total of US$35 million.

In line with S&P's criteria, to determine recovery prospects it
simulates a hypothetical default scenario.  In this scenario, S&P
assumes a default in 2015 triggered by material delays in finding
charters for some of the new vessels and much lower rates for
certain charters on existing rigs expire.  S&P used a discrete-
asset valuation methodology to estimate the value of Ocean Rig's
assets, given the highly cyclical and asset-intensive nature of
its business.

To value the relatively new drillships (the four built in 2011),
S&P applied a 40% haircut to their average market value.  From
this, S&P estimates that, at the hypothetical point of default,
the stressed value of the assets securing the US$1.8 billion
proposed term loans would be approximately US$1.8 billion.  S&P
also assumes enforcement costs of 9% and added six months of
prepetition interest to the amount of debt S&P estimates to be
outstanding at default.  On this basis, S&P calculates 90%
coverage of the new loans, which translates into a recovery
rating of '2' despite the multijurisdiction exposure.

The recovery rating of '3' on the existing US$800 million senior
secured notes reflects the notes' collateral.  The security
package is underpinned by a first-ranking pledge over
substantially all the assets of the issuer, Drill Rigs Holdings,
including the drilling units Leiv Eiriksson and Eirik Raude,
which have a combined market value of US$1.45 billion and are
technologically equipped to operate in both ultra-deep water and
harsh environments.  The notes also benefit from a guarantee from
parent company Ocean Rig and the subsidiaries of Drill Rigs
Holdings, and a pledge over the shares of Drill Rigs Holdings and
its subsidiaries.  However, the recovery rating is constrained at
'3' by the relative age of the rigs provided as security (built
in 2001 and 2002 respectively).  In addition, the jurisdictional
exposure in a default is uncertain, since the rigs might be in
countries with insolvency regimes that could make it difficult
for noteholders to enforce their claims on the rigs.

"Regarding the collateral value for the existing secured notes,
we apply a higher haircut on the Leiv Eiriksson and Eirik Raude
rigs because they are older than the rigs securing the proposed
notes. After a haircut of approximately 50% to their average
market value, we estimate the stressed value of the collateral
securing the existing US$800 million senior secured notes at
about US$675 million at the hypothetical point of default.  After
deducting about 9%, for enforcement costs and prepetition
interest, slightly more than 70% would be left for the holders of
the senior secured notes.  But due to multijurisdictional risk,
we have capped recovery prospects at 50%-70%," S&P said.

"The haircuts and the value per rig we use for Ocean Rig's
drilling units are consistent with our valuation of similar
assets of other companies in the ultra-deep-water drilling
industry.  Our 40% haircut for the collateral on the proposed
loans is somewhat conservative.  However, it is smaller than the
haircut we generally apply to other lower-specification or older
assets, given the relative newness and high-specification nature
of the company's drillships," S&P added.

The recovery rating of '6' on the existing 9.5% US$500 million
senior notes reflects the notes' unsecured and unguaranteed
nature.  Virtually all of the group's other debt is secured by
assets, which means these notes are contractually and
structurally subordinate to other debt.


* GREECE: ERT Shutdown Threatens to Fracture Government
-------------------------------------------------------
Nektaria Stamouli and Gabriele Steinhauser at The Wall Street
Journal report that Greece's shaky coalition government was hit
Thursday with a double blow as talks over the shutdown of the
state broadcasting company threatened to fracture the government
and new worries over the financing of the country's bailout
program emerged.

The breakdown in the talks sparked a threat from the junior
partner in the three-party coalition to withdraw its support from
the government, representing the coalition's gravest internal
crisis to date, the Journal relates.

"No agreement has been reached," the Journal quotes Democratic
Left's leader, Fotis Kouvelis, as saying after a two-hour meeting
- the third in a week - of the three party chiefs.

A meeting of his parliamentary deputies is scheduled for today,
June 21, to decide the party's future in the coalition
government, the Journal notes.

                        Bailout Program

Meanwhile, euro-zone finance ministers sidestepped questions
after a meeting in Luxembourg on Thursday about a potential
financing gap in the Greek program amid reports that the euro
zone's central banks were refusing to roll over Greek bonds --
something it was previously assumed they would, the Journal
relates.

The ministers urged Athens to fulfill the terms of its bailout
program and thus ensure that the current review by the European
Union, the International Monetary Fund and the European Central
Bank is successful, the Journal discloses.

In that case, "there is no financial gap," Jeroen Dijsselbloem,
the Dutch finance minister who presided over the meeting, as
cited by the Journal, said.  "The program is fully financed for
at least another year."

Greece was thrown into a political crisis last week when the
Greek premier ordered the shutdown of Greek Radio and Television,
known as ERT, and the immediate ouster - with compensation - of
its 2,700 employees, the Journal recounts.

The Journal relates that the government said it would overhaul
and slim down the broadcaster-long seen as a den of mismanagement
and political patronage - before resuming broadcasting this
summer.  But Prime Minister Antonis Samaras's partners have
demanded that the station remain in operation while the
restructuring takes place, the Journal notes.  In a bid to reach
a compromise on Thursday, Mr. Samaras offered to hire back 2,000
workers on a temporary basis for three months until the new
public broadcaster is up and running, the Journal discloses.  The
proposal was accepted by the Socialists, or Pasok party, but
rejected by the Democratic Left, the Journal states.

According to the Journal, by shutting down ERT, Greece fulfills
its obligation to a delegation of international inspectors, known
as the troika, to dismiss 2,000 civil servants by the end of
June.  As part of that commitment, another 2,000 layoffs have to
be completed by the end of the year and 11,000 more by the end of
2014, the Journal says.

The IMF said it would continue to finance Greece as long as it is
able to complete a review of the cash-strapped country's finances
by the end of July as expected, the Journal relates.

According to the Journal, three people familiar with the matter
said they didn't expect the IMF to make any major problems about
the next aid payout for Greece -- some EUR5 billion expected to
be approved before the summer.  Of that payment, EUR1.8 billion
would come from the IMF, the Journal states.

The Journal notes that one of the people said the IMF was
"flexing [its] muscle" ahead of the next review of the Greek
bailout program.  The person pointed out that even when the
latest bailout deal was agreed last year, it was clear that there
were gaps in the program and euro-zone finance ministers pledged
to take extra measures to reduce the country's debt later on, the
Journal relates.



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


* IRELAND: IMF Approves Tenth Disbursal Under Bailout Program
-------------------------------------------------------------
The Irish Times reports that the International Monetary Fund has
said Ireland is on track with the conditions of its bailout
program.

The IMF, one of a trio of lenders overseeing Dublin's EUR85
billion bailout, said Ireland's economy grew modestly in 2012 for
the second year in a row and employment during the first quarter
of this year was up 1% from the same period a year ago, the Irish
Times relates.

The IMF's board approved the tenth disbursal of about US$1.27
billion, bringing to US$27.79 billion the total funds that
Ireland has received from the IMF so far, the Irish Times
discloses.  The country must meet conditions attached to the loan
to get each subsequent disbursement, the Irish Times states.

Ireland was the second euro zone country to be bailed out by the
IMF in 2010, after Greece, and has been one of the success
stories in the euro-zone debt crisis, with European and IMF
leaders eager to congratulate the country for the fiscal
discipline that has helped it get back on its feet, the Irish
Times notes.

Inspectors from Ireland's "troika" of lenders said on May 9 the
country remained on track to complete its bailout at the end of
this year, but warned it needed to do more to address entrenched
unemployment and bad debts, the Irish Times recounts.

Ireland agreed earlier this month to a detailed review of its
troubled banks' loan books this year to placate its international
lenders, and will have its stress tests before a Europe-wide
exercise in 2014, the Irish Times relates.

The move, Irish Times says, is designed to appease concerns of
the European Union and the IMF, which wanted the banks to get a
clean bill of health before the end of Ireland's sovereign
bailout in December.


=========
I T A L Y
=========


* Moody's Notes Deteriorating Performance of Italian Leasing ABS
----------------------------------------------------------------
The performance of the Italian leasing asset-backed securities
(ABS) market deteriorated in April 2013, according to the latest
index report published by Moody's Investors Service.

Moody's cumulative default index (as a percentage of original
balance plus cumulated replenishments) rose to 6.7% in April 2013
from 5.6% a year earlier. The increase may be linked to the
liquidity constraints that continued to negatively affect Italian
small and midsized enterprises (SMEs) with a marked increase in
invoice payment delays. Moreover, Moody's observed the most
significant increase in transactions closed in 2007 and 2008
where the cumulative default rate increased to 7.9% in April 2013
from 6% in April 2012. Those transactions includes vintages that
have been originated pre crises and where the underwriting
standards where less stringent.

Moody's noted a slight deterioration in the year-over-year total
delinquencies index trend (as of current pool balance) increasing
to 5.8% in April 2013 from 5.5% in April 2012. The index
delinquency rate has been increasing until October 2012, when it
reached the peak of 6,9%, and subsequently gradually diminishing
to the current 5,8% level.

The average constant prepayment rate rose in April 2013 to 1.3%
compared with 0.9% in April 2012.

Moody's expects that Italian GDP will contract by 1.8% in 2013.
As of April 2013, the Italian leasing ABS total outstanding pool
balance was EUR10.8 billion compared with EUR13.4 billion a year
earlier with 23 outstanding transactions. Between January 2013
and April 2013 four transactions were fully repaid following an
early redemption.

As of May 2013, three out of 23 outstanding transactions (Locat
SV S.r.l. - Serie 2006 (LSV4), Locat SV S.r.l. -- Serie 2006 and
Zephyros Finance S.r.l.) reported an unpaid principal deficiency.

The rating agency has made available additional information
regarding the number of outstanding deals, the number of
outstanding rated tranches, the average pool factor and the
average of Moody's performance expectations in the summary sheet
of the Italian leasing index report.



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


ALFA BANK: Fitch Assigns 'B+' Long-Term Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has assigned JSC SB Alfa Bank Kazakhstan (ABK)
Long-term Issuer Default Ratings (IDRs) of 'B+' with a Stable
Outlook.

KEY RATING DRIVERS - IDRS, NATIONAL LONG-TERM RATING, VIABILITY
RATING

The Long-term IDRs and National Rating are based on the Viability
Rating (VR) of 'b+'. The VR reflects the bank's small franchise,
high single-name concentrations on both sides of the balance
sheet, significant growth in a relatively high risk environment
and some uncertainty associated with future development plans,
which may at some point be impacted by potential new bank
acquisitions in Kazakhstan by ABK's shareholders.

At the same time, the ratings positively consider the solid
performance helped by low average funding costs, reasonably
strong reported asset quality metrics, the currently sound
liquidity and funding position, and solid capitalization.

Loan quality benefits, in Fitch's view, from considerable
management expertise in domestically-focused corporate lending as
well as external oversight of the bank's operations by the
ultimate parent Luxembourg-based ABH Holdings S.A. (ABHH;
unrated). The non-performing (overdue by more than 90 days) loans
at end-2012 were a low 0.6% of gross loans, and restructured
loans made up only 0.5%.

Asset quality metrics could, however, come under pressure as the
bank expands into more risky market segments, including retail.
Fitch also notes a considerable volume of USD loans (27% of gross
loans at end-2012) that might also be rather sensitive to any
potential deterioration in the operating environment.

Mitigating credit risk is the currently significant loss
absorption capacity. ABK could have increased its loan impairment
reserves to 19% of gross loans at end-2012 before its regulatory
Tier I capital ratio would fall to the minimum 5%.

The liquidity position is comfortable given the solid buffer of
liquid assets that, net of potential cash requirements for 2013,
covered total deposits at end-2012 by 31%. Refinancing risks
could, however, arise on potential drawdowns by the largest
depositors, as the largest 20 names comprised a material 45% of
total liabilities at end-2012. Refinancing opportunities with
group banks are a potential further mitigant.

The Fitch Core Capital/weighted risks ratio was a solid 19% at
end-2012 after a US$30 million equity contribution in 2012 and
the strong internal capital generation in recent years. Fitch's
view of capitalization takes account of a bank-envisaged US$40
million injection in 2014, as well as the possibility of
additional contributions depending on growth opportunities.

KEY RATING DRIVERS - SUPPORT RATING

The Support Rating (SR) of '4' reflects Fitch's view of the
limited probability of support that might be forthcoming from the
owner of 100% of ABK's ordinary shares, Russia-based OJSC Alfa
Bank (ABR; 'BBB-'/Stable/'bbb-') and the broader Alfa Group, if
needed. In Fitch's view, support may be forthcoming in light of
the common branding of ABK and other group entities, resulting
potential reputational risk of any default at ABK and the small
cost of any support which may be required.

At the same time, Fitch views ABR's propensity to provide support
as limited because (i) it holds shares in ABK on behalf of ABHH
to which it has ceded control and voting rights through a call
option under which ABHH may acquire the shares in ABK until end-
June 2014 (this agreement may be prolonged); (ii) Fitch
understands that there is limited operational integration between
ABK and ABR; and (iii) ABR currently has limited regulatory
capital flexibility, and would need to deduct any further
investments in subsidiaries from its regulatory capital.

Support from other Alfa Group entities, in Fitch's view, also
cannot always be relied upon due to: (i) ABK's currently small
size, making it less strategically important compared to the
group's other major assets; (ii) the bank's limited track record;
and (iii) some risk that support could be withheld under certain
circumstances, especially in a scenario of a systemic financial
crisis in Kazakhstan. The latter takes account of ABHH's failure
to provide full support to its Ukraine-based subsidiary PJSC
Alfa-Bank (ABU; 'B-'/Stable/'cc') in 2008, when the latter
restructured, instead of repaying at maturity, its debt. That
said, Fitch currently views the likelihood of a systemic crisis
in Kazakhstan as lower than in Ukraine and therefore believes
there is a lower probability of circumstances arising when Alfa
Group would choose not to support ABK, relative to ABU. This is
reflected in ABK's higher Support Rating ('4' vs. '5' for ABU).

RATING SENSITIVITIES

The Long-term IDRs, National Rating and VR could be downgraded
following a material deterioration in asset quality,
capitalization or the funding profile. An upgrade would require
an improvement of the operating environment, a longer track
record of sustainable performance, and a more extensive
franchise.

The SR could be downgraded if ABK does not receive support in a
timely fashion, when needed. Potential for an upgrade of the SR
is currently limited.

The rating actions are:

  Long-term foreign-currency Issuer Default Rating (IDR) assigned
  at 'B+'; Outlook Stable

  Short-term foreign-currency IDR assigned at 'B'

  Long-term local-currency IDR assigned at 'B+'; Outlook Stable

  National long-term rating assigned at 'BBB(kaz)'; Outlook
  Stable

  Viability Rating (VR) assigned at 'b+'

  Support Rating (SR) assigned at '4'



===========
L A T V I A
===========


LATVIJAS KRAJBANKA: B2 Holding Takes Over Consumer Loan Portfolio
-----------------------------------------------------------------
Baltic Business News reports that B2 Holding, a debt management
business in the Nordics, has taken over a book value after
deductions LVL8.7 million consumer loan portfolio from bankrupt
Latvijas Krajbanka's estate.  The portfolio includes 12,000
debtors, BBN says, citing news2biz LATVIA.

According to BBN, Olav Dalen Zahl, CEO of B2 Holding, told
news2biz "We operate more freely in relation to the debt than the
banks.  We will process the claims and follow up on the claims
and our goal to set up voluntary repayment schemes with all
debtors."

"We strive to get voluntary settlements with as many debtors as
possible, but if this is not possible we will take the matters
through the judicial system."

BBN relates that Mr. Dalen Zahl, as quoted by news2biz, said
"12,000 debtors is quite a number and identifying, processing and
approaching them will require some kind of an organization in
Latvia, but there are several ways of getting there and we are
looking at them now."

                    About Latvijas Krajbanka

Headquartered in Riga, Latvia, AS Latvijas Krajbanka provides
commercial banking services to businesses and private individuals
in Latvia and the markets of the Commonwealth of Independent
States.  As of Dec. 31, 2009, AS Latvijas Krajbanka had 115
customer service centers and 190 automated teller machines.  AS
Latvijas Krajbanka is a subsidiary of AS banka Snoras.

As reported in the Troubled Company Reporter-Europe on May 10,
2012, Baltic Business News said the Riga District Court on
May 8 decided to start the bankruptcy procedure of Latvijas
Krajbanka.  The move was initiated by Krajbanka's insolvency
administrator SIA KPMG Baltics, BBN disclosed.  The company
believes that it is impossible to revive the bank without state
support, which is not coming, BBN noted.

Latvian regulators halted Krajbanka's operations on Nov. 21,
2011, after discovering LVL167 million (US$301 million) was
missing, Bloomberg News recounted.



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


MAGYAR TELECOM: S&P Lowers Corporate Credit Rating to 'CC'
----------------------------------------------------------
Standard & Poor's Ratings Services said it had lowered to 'CC'
from 'CCC' its long-term corporate credit rating on Netherlands-
based holding company Magyar Telecom B.V.

S&P also lowered its issue rating on Magyar Telecom's
EUR350 million senior secured notes due 2016 to 'CC' from 'CCC'.

At the same time, S&P placed both the long-term corporate credit
rating on the company and the issue rating on its debt on
CreditWatch with negative implications.

The CreditWatch placement reflects S&P's view that there is a
high risk that Magyar Telecom will not make the coupon payment on
its EUR350 million senior secured notes, maturing in 2016, within
five business days following the coupon's due date on June 15,
2013.

According to S&P's criteria, it applies a uniform five-business-
day standard with respect to grace periods, irrespective of the
company's 30-day grace period under the notes' documentation.
Accordingly, S&P would consider a coupon payment made more than
five business days after the due date, but prior to the
expiration of Magyar Telecom's 30-day grace period, as a default
under S&P's criteria.

Magyar Telecom is the holding company of Invitel Tavkozlesi ZRt,
which is the second-largest fixed-line telecommunications, cable-
TV, and broadband Internet services provider in Hungary.  On June
17, 2013, the company announced that it believes it is in all
stakeholders' interests to reach an agreement regarding its
overall capital structure and the treatment of the June coupon
payment.  The company will review its decision to make the
interest payment prior to the end of the 30-day grace period.

"In our base-case scenario, we forecast significant negative free
operating cash flow (FOCF) of at least EUR10 million in 2013,
absent material working capital outflows and assuming capital
expenditures of at least EUR25 million (down from EUR43 million
in 2012).  This will likely largely deplete the group's available
cash balances, which stood at EUR14 million at year-end 2012.  In
our view, Magyar Telecom's revenues and EBITDA generation will
remain constrained by strong macroeconomic and competitive
pressures as well as high special tax payments.  As a result, we
believe that the group's capital structure has become
unsustainable, heightening the risk of a distressed exchange
offer, which we would also view as a default under our criteria,"
S&P said.

S&P aims to resolve the CreditWatch next week, following the
expiry of the five-business-day period from the senior secured
notes' coupon due date.

S&P will lower the corporate credit and issue ratings to 'D' if
Magyar Telecom does not make the coupon payment within the five-
business-day grace period, ending on June 21, 2013.

S&P could affirm the rating at 'CC' if the company makes the
required coupon payment by June 21, 2013.  Nevertheless, the
ratings would remain constrained by the announced review of the
group's capital structure and associated high risk of a
distressed exchange offer, which S&P would view as a default
under its criteria.

Although not anticipated at this stage, meaningful liquidity
support from Magyar Telecom's owner, Mid Europa Partners, could
have a positive impact on the rating.



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


* POLAND: Corporate Bankruptcies Up 7% in First Five Months
-----------------------------------------------------------
According to Xinhua, a report from Coface has showed that in
Poland, 380 firms went bankrupt in the first five months of 2013,
7% more than a year earlier.

A total of 877 firms went bankrupt in Poland in 2012, up 21% from
2011, Xinhua discloses.

Xinhua notes that the Coface report said the processing industry
has been hardest hit by recession.



===============
S L O V E N I A
===============


* SLOVENIA: DUTB to Get First Batch of Non-Performing Loans
-----------------------------------------------------------
Leos Rousek at The Wall Street Journal reports that Slovenia's
recently formed Bad Asset Management Company, or DUTB, will
receive its first batch of non-performing loans from the
country's state-owned lenders by end-June, clearing the way for
the privatizations slated to help this small euro-zone member
avoid an international bailout.

"The first transfer will total about EUR2 billion (US$2.67
billion)," Simona Rodez, a DUTB spokeswoman told the Journal.
"These will be non-performing loans from Nova Ljubljanska Banka."

NLB is the largest of the three heavily-indebted Slovenian banks
currently controlled by the government, which has already
injected fresh capital into all three to keep them afloat amid
fears they could undermine the overall economy, the Journal
discloses.

The other two troubled lenders are Nova Kreditna Banka Maribor,
or NKBM, and Abanka-Vipa, the Journal notes.  Together, they
control the majority of the Slovenian banking sector and their
financial problems have added to the overall economic recession
by stoking a credit crunch, the Journal states.  The three banks
shoulder some EUR7 billion worth of bad loans, which are 90 or
more days overdue, equaling about one-fifth of total Slovenian
economic output, the Journal says.  The three lenders also
swapped some of their other loans into equity stakes in various
companies to avoid classifying these as non-performing, the
Journal relates.

As a result, the Slovenian government controls most of the local
economy directly and indirectly through its state-owned banks,
the Journal says, citing a recent report by the Organization for
Economic Cooperation and Development.

By cleaning up the banks' balance sheets the government wants to
make them ready to be sold, according to the Journal.



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


CODERE SA: Moody's Affirms 'Caa3' CFR; Outlook Still Negative
-------------------------------------------------------------
Moody's Investors Service has downgraded to Ca-PD from Caa3-PD
the probability of default rating (PDR) of Codere S.A.

Concurrently, Moody's has affirmed Codere's Caa3 corporate family
rating (CFR) and the Ca ratings on Codere Finance (Luxembourg)
S.A.'s EUR760 million worth of 8.25% senior notes due 2015 and
$300 million worth of 9.25% senior notes due 2019. At the same
time, Moody's has changed the LGD rate on the senior notes to
LGD3 (46%) from LGD4 (63%). The outlook on all ratings remains
negative.

Ratings Rationale:

"We have downgraded Codere's PDR to Ca-PD following the company's
decision not to pay the coupon on the euro notes that was due on
June 15, 2013, and instead, use the 30 day grace period available
under the terms and conditions of the notes," says Ivan Palacios,
a Moody's Vice President - Senior Credit Officer and lead analyst
for Codere.

"If the company decides not to pay the coupon before the end of
the 30 day grace period, we will consider this as a default,"
adds Mr. Palacios. In this event, Moody's expects to assign an
"/LD" to the PDR at that time.

Even if the coupon on the notes is paid before the end of the
grace period, Moody's believes that the probability of default
will remain very high. This is because it is unlikely that Codere
will be able to avoid restructuring its balance sheet, which
could result in a loss for current debtholders, given the
company's inadequate liquidity position, its highly leveraged
capital structure and its large exposure to Argentina. Moody's
might consider such a debt restructuring as a distressed exchange
and, by implication, as a default.

Codere has also announced that Canyon Capital Finance S.a.r.l.
and different funds managed by GSO Capital Partners LP, will
replace the existing lenders in the senior facility and provide a
six-month maturity extension. There will be EUR100 million
available under the senior facility, with up to EUR60 million
available in cash and the remainder in guarantee instruments.

While this maturity extension helps to avoid the payment default
on the senior facility, which was initially due on June 15, 2013,
Moody's says that it does not alleviate the company's near-term
liquidity pressures. In fact, the amended facility contains a
mandatory prepayment clause if interest on the dollar or euro
notes due on August 15, 2013 is made on or prior to September 15,
2013. In Moody's view, it is unlikely that the company will pay
the coupon due in August, even if it pays the June coupon at the
end of the grace period, since it does not have sufficient
liquidity sources to pay the coupons and the facility.

The Caa3 CFR and the Ca rating on the senior notes reflect
Moody's estimate of a family loss-given default (LGD) rate of
approximately 35% rather than the standard 50% LGD rate. At the
same time, Moody's has changed the LGD rate on the senior notes
to LGD3 (46%) from LGD4 (63%).

Codere's Caa3 rating reflects the company's weak liquidity, high
risk of default in the near term and high adjusted leverage,
which stood at around 5.4x as of December 2012. The rating also
reflects (1) the company's limitations in accessing cash-flows
from Argentina; (2) its position as one of the leading gaming
operators in Latin America, Italy and Spain; and (3) its
diversification in terms of business lines, gaming assets and
geographies.

The negative outlook on the ratings reflects Codere's uncertain
operating and financial prospects in light of its likely debt
restructuring.

What Could Change The Rating Up/Down

Moody's would consider assigning an "/LD" to the PDR if Codere
defaults on the June coupon payment at the end of the 30 day
grace period.

Moody's would also consider downgrading the ratings if Codere
announces a debt restructuring affecting creditors in a more
severe way than currently factored in the CFR and instrument
ratings.

In view of this action and the negative rating outlook, Moody's
does not currently anticipate upward rating pressure in the near
term.

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

Codere is a multinational gaming operator engaged in the
management of gaming machines, machine halls, bingo halls, horse
racing tracks, casinos and sports betting locations in Latin
America, Italy and Spain. As of December 2012, Codere managed
56,474 gaming machine seats, 186 gaming halls (including machine
halls, bingo halls with machines, machine halls at racetracks and
casinos), 1,379 betting locations and three horse racing tracks.
In 2012, Codere generated operating revenue of EUR1.664 billion
and EBITDA of EUR305 million.



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


DUNFERMLINE ATHLETIC: Administrator to Proceed with CVA Offer
-------------------------------------------------------------
Jane Lewis at BBC Scotland reports that Dunfermline's
administrator BDO will proceed with the offer of a company
voluntary arrangement following a meeting with the Fife club's
creditors.

BDO has received two bids to buy the Second Division club and its
East End Park stadium, BBC Scotland discloses.  According to BBC
Scotland, one of the offers is from fans group Pars United, while
the other remains undisclosed.

No decision has yet been made over which party will formally
propose a CVA on July 12, BBC Scotland notes.

On that day, creditors will decide whether to accept or reject a
pence in the pound deal for what they are owed, BBC Scotland
states.

To be accepted, a CVA must have the support of creditors due 75%
of the total debt, BBC Scotland says.

The Pars have been in administration since March, with debts of
GBP8.5 million owed to majority shareholder Gavin Masterton and
other companies, BBC Scotland relates.

Pars United was due to meet with BDO's Bryan Jackson on Monday
for further talks about their bid, BBC Scotland notes.

Dunfermline Athletic Football Club is a Scottish football team
based in Dunfermline, Fife, commonly known as just Dunfermline.


DWELL: Ceases Trading After No Buyer Found
------------------------------------------
James Thompson at The Independent reports that Dwell yesterday
closed all its stores and ceased trading both on the High Street
and online with immediate effect, with the loss of 300 jobs.

The 23-store retailer filed a notice of intention last week to
appoint the advisory firm Duff & Phelps as administrator, with a
formal announcement expected over the coming days, the
Independent discloses.

Dwell's fate was sealed by dire sales of big-ticket items and a
recent cash-flow crisis, the Independent notes.  It had been
working with advisers at Argyll Partners to find a white knight
and to secure fresh working capital but interested parties walked
away, the Independent relates.  A Dwell spokesman, as cited by
the Independent, said: "As a result we have been left with no
option but to close the business with immediate effect."

Dwell's pre-tax losses widened to GBP675,320 over the year to
January 27, 2012, the Independent says, citing the company's
latest accounts.

Dwell is an upmarket furniture chain.


EMPLOY-E: In Liquidation; Owes GBP58 Million to HMRC
----------------------------------------------------
Erikka Askeland at The Scotsman reports that Employ-E has gone
into liquidation owing HM Revenue & Customs GBP58 million in
unpaid tax.

Employ-E, a division of Legitas Group which is also in
liquidation, is owned by lawyer David Allen, who is reported to
own a golf course and mansion house in the Borders, the Scotsman
discloses.

Employ-E had about 60,000 low-paid temporary workers on its
books, who it supplied to recruitment agencies throughout the UK,
the Scotsman notes.

Claire Middlebrook, an insolvency partner with accountancy firm
Henderson Loggie, was appointed as liquidator at a creditors
meeting on Wednesday, the Scotsman relates.

Ms. Middlebrook, as cited by the Scotsman, said: "My first step
is to carry out an investigation into the position and workings
of Employ-E with the aim of realizing any assets it has for the
benefit of the creditors."

Henderson Loggie said that all staff were paid prior to its
appointment, according to the Scotsman.

Edinburgh-based Employ-E is a temporary employment agency.


INFINIS PLC: Fitch Assigns 'BB-' Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has assigned UK landfill gas (LFG) electricity
generator Infinis plc a long-term Issuer Default Rating (IDR) of
'BB-' with a Stable Outlook. Fitch has also assigned Infinis
plc's GBP350 million senior notes an instrument rating of 'BB-'.
The 'BB-' IDR is supported by Fitch's expectations of strongly
increasing average selling price (ASP) per MWh, driven by a
higher proportion of revenue qualifying for the attractive
renewable obligation (RO) incentive scheme, as opposed to the
gradually expiring and substantially lower feed-in tariff from
the non-fossil fuel obligation (NFFO). This increasing ASP will
likely mitigate falling recoverable LFG as existing extraction
sites are depleted, as well as Infinis's limited size and
business diversification.

The ASP increase also reflects Fitch's expectations on the UK
wholesale price forward market. Wholesale power prices in the UK
benefit from a favorable forward curve, arising from expected
regulation-driven thermal capacity decommissioning over the next
few years mitigating sluggish demand. Infinis however remains
exposed to the power price risk, but this is partly offset by the
low fuel price risk on royalties paid to LFG site operators which
are largely linked to revenue. This leads to high EBITDA/MWh.

The gradual decline in recoverable LFG, given largely closed
landfill sites, contributes to refinancing risk of the existing
bullet bond in 2019. Sufficient LFG is however forecast to be
recoverable through 2030 to enable such refinancing. Infinis
compares well to 'BB-' peers in terms of funds from operations
(FFO) net adjusted leverage (that Fitch forecasts to gradually
decline to approximately 3x in 2019 taking into account permitted
payments under the bond indenture from 4.1x at bond issuance,)
and FFO/interest cover (that we expect to be maintained at around
3x).

KEY RATING DRIVERS

Attractive UK Renewable Schemes
An increasing proportion of Infinis's revenue benefits from the
RO incentive scheme, as the NFFO regime expires for older sites.
The RO regime ASP is substantially higher than the weighted
average NFFO ASP. The RO ASP includes the wholesale power price
whereas the NFFO ASP is a fixed price. Electricity generation
under the RO scheme is forecast to represent 98% of output by
fiscal year (FY) 2019, from 72% of output in FY2012. The UK
government has confirmed its commitment to the grandfathering
principle which means that accredited installations operating
under existing incentive regimes will continue to benefit from
the same level of support and will not be subject to changes in
regulation. RO certificate prices are underpinned by the likely
continued shortfall in renewable energy production in the UK
against the stated 20% by 2020 target.

Decline in Recoverable LFG
Aggregate gas curves for the portfolio of landfill sites show a
natural, gradual and continuous decline in LFG availability
across Infinis's sites. Fitch has based its forecasted
recoverable LFG off Infinis estimates that have been reviewed by
a third party independent consultant (Golder Associates). There
are inherent difficulties in measuring LFG production yields;
nevertheless, Infinis has a solid track record in accurately
estimating production and extracting maximum yield. The decline
in Infinis's production yields is mitigated by forecasted
wholesale and RO price increases and engine reliability and the
termination of NFFO to RO contracts noted above. While being
reliant on a single fuel source is a weakness, LFG benefits by
being diversified geographically across the UK with more
predictable generation levels than wind and a higher load factor
than solar.

Wholesale Price Exposure
Despite an upside in the overall ASP, the RO regime introduces
increased market risk as it is not a feed in tariff like the
NFFO. The proportion of revenue solely from RO certificates and
NFFO is forecast to decline steadily, with increasing wholesale
price exposure. While Fitch projects flat RO certificate pricing
in real terms (RO elements are indexed linked), Fitch forecasts
growth in the wholesale price in line with the current forward
curve. Consequently, changes to Fitch's wholesale price
assumptions could have a significant impact on Infinis's cash
flows and the rating, considering the projected gradual declines
in LFG extraction.

Re-Financing Risk in 2019
Given the continued likely decline in recoverable LFG,
refinancing may prove more challenging in 2019 compared with the
refinancing accomplished in 2013. However, the recoverable LFG
estimate is backed up by the independent Golder report which
forecasts at most a 50% reduction from current levels of
recoverable LFG by 2024. Recoverable LFG at those levels should
be sufficient to enable bond refinancing in 2019, if wholesale
electricity prices do not decline. In addition, should
recoverable LFG be less than expected over the coming years the
restriction on dividends would help to preserve cash for the bond
holders. We forecast FFO net adjusted leverage at bond maturity
in 2019, at approximately 3x, will be lower than the 4.1x FFO net
adjusted leverage following the recent refinancing.

Infinis Plc Rated Standalone
In Fitch's opinion, the bond indenture largely insulates Infinis
from its parent, Infinis Energy Holding Limited (IEHL), and its
planned investments in additional wind assets. Notwithstanding
this, the bond indenture permits potentially significant cash
leakage from Infinis in the form of dividends and other permitted
payments and investment. However, these restricted payment
provisions are relatively standard and reflect the profitability
and forecast strong free cash flow (FCF) of Infinis prior to
dividends rather than a structural weakness in the bond
documentation.

Solid EBITDA per MWh
Infinis's margin per MWh of approximately GBP45 in FY2013
compares favourably with fossil fuelled generators given the
generous RO scheme benefits from being an embedded distributor
and relatively low variable royalty payments for fuel. Margin per
MWh is projected to increase mainly due to rising wholesale
prices and some cost saving initiatives implemented in 2013, and
despite the increasing cost per MWh as production yields decline,
though we note Infinis has cost reduction plans for the future.
Combined with low capital expenditure requirement, Infinis has
strong FCF potential but this will be tempered by dividend
payments.

Debt Structure and Liquidity
Infinis is forecast to have strong liquidity given solid FCF
generation although cash balances are likely to be limited, as
once net debt to EBITDA leverage incurrence tests are passed,
dividends would likely increase, in line with permitted payments
in the bond indenture. No uplift from the IDR is awarded for the
senior notes reflecting average expected recoveries due to asset
concentrations resulting in potentially greater-than-average
volatility in LFG valuations and Infinis's position as an
independent and merchant power provider with limited retail
hedges.

RATING SENSITIVITIES:

Positive:

A positive rating action is unlikely in the near term given the
slow de-leveraging and potential for increased dividends and
permitted investments with affiliates. Future developments that
could nevertheless lead to positive rating action include:

-- Increased wholesale prices or LFG recovery beyond Fitch's
   expectations leading to FFO gross adjusted leverage
   sustainably below 3x and FFO interest cover sustainably
   above 4x.

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

-- Recoverable LFG depletion faster than we currently assume or
   wholesale prices substantially lower than the forward curve
   such that FFO net adjusted leverage is sustainably above 4x
   and FFO interest cover sustainably below 2.5x.


NEMUS II: Fitch Lowers Rating on Class F Notes to 'CC'
------------------------------------------------------
Fitch Ratings downgrades Nemus II (Arden) Plc's notes due 2020 as
follows:

  GBP139.2m class A (XS0278300487) downgraded to 'AAsf' from
  'AA+sf'; Outlook Stable

  GBP11.3m class B (XS0278300560) downgraded to 'Asf' from 'AA-
  sf'; Outlook Negative

  GBP7.7m class C (XS0278300727) downgraded to 'BBBsf' from
  'Asf'; Outlook Negative

  GBP7.1m class D (XS0278301295) downgraded to 'BBsf' from
  'BBBsf'; Outlook Negative

  GBP13.9m class E (XS0278301378) downgraded to 'CCCsf' from 'B-
  sf'; Recovery Estimate (RE) RE30%

  GBP1m class F (XS0278301535) downgraded to 'CCsf' from 'CCCsf';
  RE0%

Key Rating Drivers

The downgrades reflect the increased risk related to the Buchanan
House (Fern Trustees 1 and Fern Trustees 2 Ltd) loan. The Stable
Outlook on class A reflects the solid performance of the largest
loan and the expected sequential principal allocation.

The EUR41.3 million Buchanan House loan transferred into special
servicing in April 2013 after the borrower announced that a
property defect would prevent the repayment of the loan at its
maturity in October 2013. The office property located in Glasgow
is almost fully let to three tenants, with lease expiries between
2019 and 2024. The special servicer is considering a two year
extension, to allow for remedial works, which have an estimated
duration of 15 months, and a subsequent asset sale.

With leverage estimated to be already in excess of 100% and
remedial works expected to be substantial, it remains unclear how
these works will be funded and, importantly, how the existing
tenants will be affected. Asset value could also be further
depressed, following a two year extension, with the remaining
lease term less attractive for potential lenders and property
investors alike. Fitch considers the loan to be more risky now,
with an increased possibility of an ultimate loss.

The EUR11.9 million Carlton House loan entered special servicing
in 2009 when scheduled amortization payments could no longer be
made. However, the interest coverage ratio (ICR) would improve to
4.1x from the current 1.4x once the swap falls away in October
2014 (assuming current income and interest rates). This would
free up significant surplus for amortization or capital
expenditure (capex) and swap breakage fees would no longer be
due, diminishing the recoveries.

The loan is secured on three retail assets located in Birmingham.
36 tenants, none of which accounts for more than 9% of the rent,
occupy 93.7% of the lettable space. The weighted average
remaining lease term was reported at 7.6 years in May 2013. Due
to the high leverage (reported at 107%), the relatively low asset
quality and the risk of falling income in a prolonged workout,
Fitch expects a loss from this loan.

The largest loan, EUR126.9 million Victoria (Kirkglade Limited),
is secured on a fully let office property (with retail
components) located in London's West End. The largest tenant,
John Lewis (NR), accounts for 80% of the total rent, with lease
break and maturity in 2031 and 2069, respectively. National
Westminster Bank and McDonald's (both 'A'/Stable Outlook) jointly
account for 9.6% of the rent. However, both leases expire in
2015.

The borrower remedied a loan-to-value ratio covenant breach in
April 2013 by depositing EUR8 million with the account bank.
Barring a default, the borrower may request a three year loan
extension from loan maturity in October 2013. The existing swap
would also be extended and the loan would continue to amortize
according to a predetermined schedule. Fitch does not expect
losses from this loan.

Rating Sensitivities

Lower-than-expected recoveries from either Buchanan House or
Carlton House would likely trigger further downgrades.


* UK Office Charges Trader in LIBOR Benchmark Rate Manipulation
---------------------------------------------------------------
The Associated Press reported that Britain's Serious Fraud Office
has charged a former trader with conspiracy to defraud in the
rigging of a benchmark interest rate.

According to the report, the UK's official financial crimes
investigator says Tom Hayes, a former trader at UBS and
Citigroup, was charged Tuesday as part of the investigation into
the manipulation of the London interbank offered rate, or LIBOR.

City of London police charged the 33-year-old with eight counts
of conspiracy to defraud, the report related. Hayes specialized
in products pegged to yen-dominated Libor and worked in offices
in London and Tokyo.

He will appear before Westminster Magistrates' Court at a later
date, the report said.

The charges follow an investigation opened last year after
Barclays was fined US$435 million by American and British
agencies for creating false reports on its borrowing costs
between 2005 and 2009, specifically related the interbank rate,
the report further related.



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


* Bond Market Access Important for Liquidity Quality in EMEA
-------------------------------------------------------------
Liquidity quality will remain a source of credit strength for
investment-grade (IG) and speculative-grade (SG) corporates in
most sectors across Europe, Middle East and Africa (EMEA)
provided current bond market access is sustained, says Moody's
Investors Service in its latest EMEA liquidity report titled
"Liquidity of EMEA Corporates Remains Solid."

The liquidity of most EMEA corporates has remained healthy
despite a moderate erosion of credit quality over the past 12
months, with some more marked areas of weakness in cyclical
industries.

"Companies have continued to conservatively accumulate cash,
refinance debt maturities in advance and take advantage of
favorable conditions in terms of bond market access to extend
debt maturities," states Jean-Michel Carayon, Moody's Senior Vice
President and author of the report.

Moody's studied 628 rated non-financial corporate borrowers and
found that 91% of issuers appear to have sufficient liquidity to
cover their debt maturities over the next 12 months, the same
percentage as in the rating agency's previous study. Also as with
the previous year, most of the issuers displaying insufficient
liquidity or liquidity presenting clear weaknesses are mostly
positioned in the B rating category. While there are selected
areas of weakness and broader vulnerability to a new
macroeconomic shock, the healthy liquidity profile of the vast
majority of corporates in EMEA is consistent with Moody's
forecast that the default rate will remain below the long-term
average through the end of the year.

Over a third more debt (EUR553billion compared with EUR409
billion one year before) will mature within a period of 12 months
by March 2014, which to a large extent reflects the growing rated
EMEA high yield market. The increase in the magnitude of near-
term maturities nevertheless elevates the risk associated with an
extended period of market access.

The risk of breaches of financial covenants that could result in
more defaults is currently moderate. Covenant headroom has
stabilized or even increased slightly despite the sluggish
macroeconomic environment for most corporates. However for those
at the lower end of the rating scale, headroom is likely to
weaken, which could well trigger an increase in defaults in the
SG segment.

Moody's sees the main risk facing the quality of corporate
liquidity in EMEA as a deepening of the euro area recession,
accompanied by further credit contraction, potentially triggered
by a further intensification of the sovereign debt crisis.


BOOK REVIEW: Jacob Streider's Jacob Fugger the Rich
---------------------------------------------------
Author: Jacob Streider
Publisher: Beard Books
Hardcover: 227 pages
List Price: $34.95
Review by Gail Owens Hoelscher
Buy a copy for yourself and one for a colleague on-line at
http://is.gd/UAP0Zb

Quick, can you work out how much $75 million in sixteenth
century dollars would be worth today? Well, move over Croesus,
Gates, Rockefeller, and Getty, because that's what Jacob Fugger
was worth.

Jacob Fugger was the chief embodiment of early German
capitalistic enterprise and rose to a great position of power in
European economic life.  Jacob Fugger the Rich is more than just
a fascinating biography of a powerful and successful
businessman, however.  It is an economic history of a golden age
in German commercial history that began in the fifteenth
century.  When the book was first published, in 1931, The Boston
Transcript said that the author "has not tried to make an
exhaustive biography of his subject but rather has aimed to let
the story of Jacob Fugger the Rich illustrate the early
sixteenth century development of economic history in which he
was a leader."

Jacob Fugger's family was one of the foremost family in Augsburg
when he was born in 1459.  They got their start by importing raw
cotton, by mule, from Mediterranean ports.  They later moved into
silk and herbs and, for a long while, controlled much of
Europe's pepper market.

Jacob Fugger diversified into copper mining in Hungary and
transported the product to English Channel and North Sea ports
in his own ships.  A stroke of luck led to increased mining
opportunities.  Fugger lent money to the Holy Roman Emperor
Maximilian I to help fund a war with France and Italy. Mining
concessions were put up as collateral.  The war dragged on, the
Emperor defaulted, and Fugger found himself with a European
monopoly on copper.

Fugger used his extensive business network in service of the
Pope.  His branches all over Europe collected payments due the
Vatican and issued letters of credit that were taken to Rome by
papal agents.  Fugger is credited with creating the first
business newsletter.  He collected news of evolving business
climate as well as current events from his agents all across
Europe and distributed them to all his branches.

Fugger's endeavors wee not universally applauded.  The sin of
usury was still hotly debated, and Fugger committed it
wholesale.  He was sued over his monopoly on copper.  He was
involved in some messy bribes in bringing Charles V to the
throne.  And, his lucrative role as banker in the sale of
indulgences, those chits that absolve the buyer of sin, raised
the ire of Martin Luther himself.  Luther referred to Fugger
specifically in his Open Letter to the Christian Nobility of the
German nation Concerning the Reform of the Christian Estate just
before being excommunicated in 1521.  Fugger went on, however, to
fund Charles V's war on Protestanism and became even richer.
Fugger built many churches and buildings in Augsburg.  He was
generous to the poor and designed the world's first housing
project. These buildings and lovely gardens, called the
Fuggerei, are still in use today.

A New York Times reviewer said that Jacob Fugger the Rich, a
book "concerned with the most famous, most capable, and most
interesting of all [the members of the Fugger family] will be as
interesting for the general reader as for the special student of
business history."  This observation is just as true today as in
1931, when first made.

Jacob Streider was a professor of economic history at the
University of Munich.


                            *********

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

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *