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        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, July 19, 2013, Vol. 14, No. 142

                            Headlines


A U S T R I A

EUROCONNECT SME 2008: S&P Affirms 'B+' Rating on Class C Notes


F R A N C E

DEXIA CREDIT: Bank Cuts No Impact on Moody's Securities Rating
SG CAPITAL: Moody's Retains Preferred Stock Rating Over Bank Cuts
SPCM S.A.: S&P Raises LT Corporate Credit Rating to 'BB+'


G E R M A N Y

OETINGER: Files for Insolvency; Rescue Options Mulled
SCHAEFFLER HOLDING: Moody's Rates EUR1.5-Bil. Notes Issue 'B2'
TALISMAN 7: Fitch Downgrades Rating on Class F Notes to 'C'


G R E E C E

* GREECE: Parliament Approves New Batch of Austerity Measures


H U N G A R Y

MAGYAR TELECOM: Payment Default Cues Moody's to Cut CFR to 'Ca'


I R E L A N D

CLAREGALWAY HOTEL: Purchased Out Of Receivership
EUROCREDIT CDO V: Moody's Lowers Rating on Class D Notes to Ba2


I T A L Y

CASSA DI RISPARMIO: Moody's Lowers Deposit Ratings to 'Caa1'


N E T H E R L A N D S

INTERXION HOLDING: Moody's Rates EUR325MM Senior Notes 'B2'
SCHAEFFLER HOLDING: S&P Assigns 'B+' Corporate Credit Rating


R O M A N I A

BANCA COMERCIALA: Moody's Downgrades Deposit Ratings to 'Ba3'
GROUPE SOCIETE: Moody's Cuts Deposit Ratings to 'Ba2'
LIBRARIILE ALEXANDRIA: Judiciary Administrator Appointed


R U S S I A

RUSSIAN STANDARD: Fitch Assigns 'B' Subordinated Debt Rating
YAKUTSK FUEL: Fitch Affirms 'B-' Issuer Default Ratings


S E R B I A   &   M O N T E N E G R O

KOMBINAT ALUMINIJUMA: Montenegrin Court Agrees to Release CFO


S L O V E N I A

RIMSKE TERME: EUR28 Million in Claims Admitted in Receivership


S P A I N

BANKINTER: S&P Affirms 'BB/B' Ratings; Outlook Stable
BANKOA: Moody's Affirms 'Ba1' Deposit Ratings & Negative Outlook
CEL CELIS: Opens Insolvency Proceedings in Leon Court
LA SEDA: Court Appoints Mazars as Insolvency Administrator
NCG BANCO: S&P Affirms 'BB-/B' Ratings; Outlook Negative

* SPAIN: Renewable Energy Subsidy Cuts May Spur Bankruptcies


T U R K E Y

TURKLAND BANK: Fitch Affirms 'b+' Viability Rating
YAPI VE KREDI: Moody's Affirms Ba1 Subordinated Debt Ratings


U K R A I N E

AGROTON: Sets Tough Restructuring Terms for Eurobond Investors
AGROTON PUBLIC: Fitch Lowers Issuer Default Ratings to 'C'


U N I T E D   K I N G D O M

ASHTEAD GROUP: Moody's Raises CFR to 'Ba2'; Outlook Stable
ENGINE SEARCH: High Court Winds Up Two Engine Repair Companies
HVM: Former Worker Opens Up Store Called "HVM"
MARLIN INTERMEDIATE: Moody's Assigns '(P)B2' CFR; Outlook Stable
PAPERINO'S RESTAURANT: Falls Into Administration

SCOTTISH COAL: Liquidators Escape Clean-Up Bill Responsibility
UK COAL: Miners Have Been Warned For a Cut in Pension Payouts
* Scottish Quarry Firms to Sue Taxman to Halt Seizure of Assets


X X X X X X X X

* BOOK REVIEW: The Luckiest Guy in the World


                            *********


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A U S T R I A
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EUROCONNECT SME 2008: S&P Affirms 'B+' Rating on Class C Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered to 'A- (sf)' from
'A (sf)' its credit rating on UniCredit Bank AG's HVB class A2
credit-linked notes (CLNs).  At the same time, S&P has affirmed
its ratings on EuroConnect SME 2008 Ltd.'s class A, B, and C
notes, UniCredit Bank's HVB class B2 CLNs, and UniCredit Bank
Austria AG's BA-CA class A2 and B2 CLNs.

The rating actions follows S&P's May 28, 2013 downgrade of
UniCredit Bank Austria to 'A-/A-2' from 'A/A-1' and its
counterparty risk analysis of EuroConnect SME 2008--and the
related UniCredit Bank's HVB CLNs and UniCredit Bank Austria's
BA-CA CLNs--under S&P's current counterparty criteria.

UniCredit Bank Austria is the cash deposit provider for
EuroConnect SME 2008 and UniCredit Bank's HVB floating-rate CLNs.
It also provides direct substantial support for UniCredit Bank
Austria's BA-CA CLNs.

In EuroConnect SME 2008 and UniCredit Bank's HVB CLNs, the
issuers have invested proceeds from the issuance of the CLNs in a
cash deposit with UniCredit Bank Austria.  Thus, the principal of
the rated notes is cash-collateralized.  According to S&P's
current counterparty criteria, applicable to bank account
providers in funded synthetic transactions, the maximum rating on
the notes is equivalent to S&P's long-term issuer credit rating
(ICR) on the bank account provider, if it is rated 'A-'.
Consequently, S&P has lowered to 'A- (sf)' from 'A (sf)' its
rating on UniCredit Bank's HVB class A2 CLNs.

At the same time, S&P has affirmed its ratings on EuroConnect SME
2008's class A, B, and C notes, on UniCredit Bank's HVB class B2
CLNs, and on UniCredit Bank Austria's BA-CA class A2 and B2 CLNs.
This is because S&P considers their ratings to be commensurate
with the available credit enhancement for these notes, and the
rating levels are in line with the application of S&P's current
counterparty criteria.

EuroConnect SME 2008 is a partially funded synthetic balance
sheet transaction, referencing a portfolio of bank loans granted
to mainly German and Austrian SMEs (and to a limited extent
larger corporates) originated by UniCredit Bank and UniCredit
Bank Austria.  The transaction closed in September 2008.
UniCredit Bank Austria's BA-CA and UniCredit Bank's HVB CLNs
reference distinct subpools of the overall EuroConnect SME 2008
portfolio.

          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 Reports
included in this credit rating report are available at:

            http://standardandpoorsdisclosure-17g7.com

RATINGS LIST

Class               Rating
            To                From

UniCredit Bank AG
EUR0.2 Million HVB Floating-Rate Credit-Linked Notes

Rating Lowered

A2          A- (sf)           A (sf)

Rating Affirmed

B2          A- (sf)


EuroConnect SME 2008 Ltd.
EUR181.75 Million Credit-Linked Floating-Rate Notes

Ratings Affirmed

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

UniCredit Bank Austria AG
EUR0.2 Million BA-CA Floating-Rate Credit-Linked Notes

Ratings Affirmed

A2          B+ (sf)
B2          CCC+ (sf)



===========
F R A N C E
===========


DEXIA CREDIT: Bank Cuts No Impact on Moody's Securities Rating
--------------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
(IDRs) of Credit Agricole (CA), Societe Generale (SG), Groupe
BPCE (GBPCE), Dexia and Dexia Credit Local (DCL) to 'A' from 'A+'
and Short-term IDRs to 'F1' from 'F1+'. Fitch has also downgraded
BNP Paribas' (BNPP) and CM11-CIC's Short-term IDRs to 'F1' from
'F1+'. The Viability Ratings (VRs) of all French banks and BNPP's
and CM11-CIC's Long-term IDRs are unaffected. In addition,
BNPP's, CA's, CM11-CIC's, SG's, GBPCE's, Dexia's and DCL's
Support Rating Floors (SRFs) have been revised to 'A' from 'A+'.

Fitch has affirmed Credit Immobilier de France Developpement's
(CIFD) Long-term IDR at 'A', Short-term IDR at 'F1' and SRF at
'A'. La Banque Postale's (LBP) Long-term IDR has been downgraded
to 'A+' from 'AA-' and Short-term IDR affirmed at 'F1+'. A full
list of ratings actions is at the end of this comment. The impact
on the banks' related entities will be detailed in a separate
rating action commentary.

KEY RATING DRIVERS - IDRS, SUPPORT RATINGS, SUPPORT RATING FLOORS
AND SENIOR DEBT

The rating actions follow Fitch's downgrade of France to
'AA+'/Stable from 'AAA'/Negative on 12 July 2013. The downgrade
of the French state to 'AA+' means that Fitch considers its
ability to support French banks has decreased slightly. Hence,
the agency has revised certain French banks' SRFs. Accordingly,
Fitch has downgraded the Long-term IDRs of banks whose IDRs were
derived from their SRFs (because they were higher than their VRs)
and whose SRFs have been revised. The related Short-term IDRs
have been downgraded to 'F1' in line with the mapping that links
Short-term and Long-term IDRs generally applied by Fitch. The
downgrade of LBP reflects the downgrade of its 100% shareholder,
La Poste (to 'AA-'/Stable), France's state-owned post office.

BNPP's, CA's, SG's, GBPCE's and CM11-CIC's, Support Ratings and
SRFs reflect their systemic importance domestically given their
size, significant deposit market shares and the fact they are
core providers of credit and other key financial services to the
French economy. Moreover, BNPP, CA, SG and GBPCE are considered
globally systemic financial institutions according to the
Financial Stability Board.

Credit Agricole S.A.'s Support Rating and SRF reflect its
integral role within CA and Fitch's opinion that potential state
support to the group would flow through Credit Agricole S.A. BPCE
S.A.'s Support Rating and SRF reflects its integral role within
Groupe BPCE and Fitch's opinion that potential state support to
the group would flow through BPCE S.A. Banque Federative du
Credit Mutuel's (BFCM) Support Rating and SRF reflect its
integral role within CM11-CIC and Fitch's opinion that potential
state support to the group would flow through BFCM.

CIFD's, Dexia's and DCL's Support Ratings and SRFs reflect the
agency's opinion that they would continue to be supported by the
French authorities in order to preserve financial system
stability. Any default of these banks could disrupt the financial
markets, which remain fragile. Moreover, these banks have
obtained EC approval for state aid received (albeit temporary
approval for CIFD). Caisse Centrale du Credit Immobilier de
France's (3CIF) Support Rating and SRF reflect its integral role
within CIFD. Both 3CIF and DCL have benefited from state
guarantees for issuing debt. Fitch considers that the French
state is extremely likely to continue to provide support
necessary to ensure that both the CIFD and Dexia groups continue
to be wound down in an orderly way.

SG's, GBPCE's, CIFD's, Dexia's and DCL's Long-Term IDRs (and
senior debt in the case of SG and DCL) are at their SRFs and
still factor in potential support from the French state, in case
of need. BPCE S.A.'s IDRs (and senior debt) are aligned with
those of Groupe BPCE as BPCE S.A. is part of GBPCE's cross-
support mechanism. 3CIF's IDRs (and senior debt) are aligned with
those of CIFD as 3CIF is the group's main issuing vehicle and
manages the group's liquidity. The Stable Outlook on all these
banks reflects that on France's sovereign IDR.

BNPP's, CM11-CIC's and CA's IDRs (and senior debt in the case of
BNPP) are driven by their standalone financial strength, as
indicated by their VRs. BFCM's IDRs (and senior debt) are aligned
with those of CM11-CIC as BFCM is a core subsidiary; it is the
group's main issuing vehicle, manages the group's liquidity and
controls the group's subsidiaries. Credit Agricole S.A.'s IDRs
(and senior debt) are aligned with those of CA as Credit Agricole
S.A. is part of CA's cross-support mechanism.

BNPP's and CM11-CIC's Short-term IDRs of 'F1' rather than the
'F1+' possible mapping from a Long-term IDR of 'A+' are typical
for European banks rated 'A+' whose IDRs are not based on
support. Other than a support-based rationale, a 'F1+' would only
be assigned if liquidity was exceptionally strong for the rating
level, which is not the case for these banks.

LBP's IDRs (and accordingly senior debt) and Support Rating
reflect Fitch's view that it would be supported, if required, by
its 100% shareholder, La Poste, France's state-owned post office,
and ultimately by La Poste's owner, the French state. LBP's Long-
Term IDR is one notch lower than that of La Poste, reflecting
Fitch's view of potential timeliness issues in the provision of
support.

RATING SENSITIVITIES - SUPPORT RATINGS AND SUPPORT RATING FLOORS

Support Ratings and SRFs would be sensitive to a decrease in
Fitch's view of France's ability (as measured by its rating) or
willingness to support these banks. These ratings are also
sensitive to a change in Fitch's assumptions around the
availability of sovereign support for French financial
institutions. There is a clear political intention to ultimately
reduce the implicit state support for systemically important
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 revising SRFs
down in the medium term, although the timing and degree of any
change would depend on ongoing developments and 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 large banks.

LBP's Support Rating would be sensitive to any change in Fitch's
view that institutional support is extremely probable to come
from La Poste and ultimately the French state.

RATING SENSITIVITIES - IDRS AND SENIOR DEBT

SG's, GBPCE's, CIFD's, Dexia's and DCL's Long- and Short-Term
IDRs (and senior debt in the case of SG and DCL) are sensitive to
the same factors as those affecting their SRFs. BPCE S.A.'s IDRs
(and senior debt) would be sensitive to any change in those of
GBPCE. 3CIF's IDRs (and senior debt) would be sensitive to any
change in those of CIFD.

BNPP's, CM11-CIC's and CA's IDRs (and senior debt in the case of
BNPP) are driven by their VRs and therefore would be unaffected
by any further downgrade of their SRFs. These ratings are
sensitive to the same drivers as those that would affect their
VRs, as detailed in previous commentary. BFCM's IDRs (and senior
debt) would be sensitive to any change in those of CM11-CIC.
Credit Agricole S.A.'s IDRs (and senior debt) would be sensitive
to any change in those of CA.

The Stable Outlook on LBP's Long-Term IDR reflects that on La
Poste and France's Long-Term IDRs. LBP's IDRs would be sensitive
to a rating action on La Poste and therefore on France. LBP's
IDRs could also be downgraded if Fitch reassessed La Poste's and
ultimately France's propensity to provide support to LBP, or if
state control of La Poste diminishes, which Fitch does not
expect.

KEY RATING DRIVERS AND SENSITIVITIES - SUBORDINATED DEBT AND
OTHER HYBRID SECURITIES

Subordinated debt and other hybrid capital issued by the banks
are notched down from their VRs in accordance with Fitch's
assessment of each instrument's respective non-performance and
relative loss severity risk profiles. Their ratings are primarily
sensitive to any change in the banks' VRs but also to any change
in Fitch's view of non-performance or loss severity risk relative
to the banks' viability.

KEY RATING DRIVERS AND SENSITIVITIES - STATE GUARANTEED DEBT

Dexia Credit Local's debt guaranteed by the states of France,
Belgium and Luxembourg on a several but not joint basis is rated
the same as the weakest of the three sovereigns, which is
currently Belgium (AA/Stable). Hence, this guaranteed debt has
been affirmed. The ratings assigned to the securities issued
under the guarantees are primarily sensitive to any rating action
on the Belgian sovereign.

3CIF's long-term debt guaranteed by France has been downgraded to
'AA+' to reflect the downgrade of the sovereign to 'AA+'. Its
short-term debt guaranteed by France has been affirmed at 'F1+'
in line with that of the sovereign. The ratings will continue to
move in line with those of the guarantor.

The rating actions are:

BNP Paribas

Long-term IDR: 'A+'; Stable Outlook; unaffected
Short-term IDR: downgraded to 'F1' from 'F1+'
Viability Rating: 'a+'; unaffected
Support Rating: affirmed at '1'
Support Rating Floor: revised to 'A' from 'A+'
BMTN programme: 'A+'; unaffected
Debt issuance programme (AUD): Long-term 'A+' unaffected, and
  Short-term downgraded to 'F1' from 'F1+'
EMTN programme: Long-term 'A+' unaffected and Short-term
  downgraded to 'F1' from 'F1+'
Medium Term Note (MTN) programme: Long-term 'A+' unaffected and
  Short-term downgraded to 'F1' from 'F1+'
Short-term debt: downgraded to 'F1' from 'F1+'
Long-term senior debt: 'A+'; unaffected
Market linked securities: 'A+emr'; unaffected
Subordinated debt (lower Tier 2): 'A'; unaffected
Upper Tier 2: 'BBB+'; unaffected
Hybrid capital: 'BBB'; unaffected

Credit Agricole

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Viability Rating: 'a'; unaffected
Support Rating: affirmed at '1'
Support Rating Floor: revised to 'A' from 'A+'

Credit Agricole S.A.

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'
Support Rating Floor: revised to 'A' from 'A+'
Senior debt: downgraded to 'A' from 'A+'
Short-term debt: downgraded to 'F1' from 'F1+'
Lower Tier 2: 'A-'; unaffected
Upper Tier 2: 'BBB'; unaffected
Innovative Tier 1: 'BBB-'; unaffected
Non-Innovative Tier 1: 'BBB-'; unaffected

Societe Generale

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Viability Rating: 'a-' unaffected
Support Rating: affirmed at '1'
Support Rating Floor: revised to 'A' from 'A+'
Certificate of deposits: downgraded to 'F1' from 'F1+'
Commercial paper: downgraded to 'F1' from 'F1+'
Short-term debt: downgraded to 'F1' from 'F1+'
BMTN programme: downgraded to 'A' from 'A+'
EMTN programme: Long-term downgraded to 'A' from 'A+' and Short-
  term downgraded to 'F1' from 'F1+'
MTN programme: Long-term downgraded to 'A' from 'A+' and Short-
  term downgraded to 'F1' from 'F1+'
Debt issuance programme (AUD): downgraded to 'A' from 'A+'
Senior unsecured debt: downgraded to 'A' from 'A+'
Lower Tier 2 notes: 'BBB+'; unaffected
Upper Tier 2 notes: 'BBB-'; unaffected
Hybrid capital instruments: 'BB+'; unaffected

Groupe BPCE

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Viability Rating: 'a-' unaffected
Support Rating: affirmed at '1'
Support Rating Floor: Revised to 'A' from 'A+'

BPCE S.A.

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'
Support Rating Floor: revised to 'A' from 'A+'
Senior unsecured debt: downgraded to 'A' from 'A+'
BMTN programme: downgraded to 'A' from 'A+'
EMTN programme: Long-term downgraded to 'A' from 'A+' and Short-
  term downgraded to 'F1' from 'F1+'
Short-term debt: downgraded to 'F1' from 'F1+'
Innovative Tier 1: 'BB+'; unaffected
Non-innovative tier 1: 'BB+'; unaffected
Lower Tier 2: 'BBB+'; unaffected
Commercial paper: downgraded to 'F1' from 'F1+'

CM11-CIC

Long-term IDR: 'A+'; Stable Outlook; unaffected
Short-term IDR: downgraded to 'F1' from 'F1+'
Viability Rating: 'a+'; unaffected
Support Rating: affirmed at '1'
Support Rating Floor: revised to 'A' from 'A+'

Banque Federative du Credit Mutuel (BFCM)

Long-term IDR: 'A+'; Stable Outlook; unaffected
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'
Support Rating Floor: revised to 'A' from 'A+'
Senior Unsecured debt: 'A+'; unaffected
Market linked notes: 'A+emr' unaffected
BMTN programme: 'A+'; unaffected
EMTN programme: Long-term 'A+' unaffected and Short-term
  downgraded to 'F1' from 'F1+'
Lower Tier 2: 'A'; unaffected
Hybrid capital instruments: 'BBB'; unaffected
Short-term debt: downgraded to 'F1' from 'F1+'
Commercial paper: downgraded to 'F1' from 'F1+'
Certificate of deposit: downgraded to 'F1' from 'F1+'

Credit Immobilier de France Developpement (CIFD)

Long-term IDR: affirmed at 'A'; Stable Outlook
Short-term IDR: affirmed at 'F1'
Support Rating: affirmed at '1'
Support Rating Floor: affirmed at 'A'
Viability Rating: 'f'; unaffected

Caisse Centrale du Credit Immobilier de France (3CIF) (CIFD
group)

Long-term IDR: affirmed at 'A'
Short-term IDR: affirmed at 'F1'
Support Rating: affirmed at '1'
Support Rating Floor: affirmed at 'A'
Senior Unsecured Debt: affirmed at 'A'
BMTN Programme: affirmed at 'A'
EMTN Programme: Long-term affirmed at 'A' and Short-term
affirmed
  at 'F1'
Guaranteed BMTN programme: downgraded to 'AA+' from 'AAA'
Guaranteed certificate of deposits programme: Affirmed at 'F1+'
Guaranteed notes: downgraded to 'AA+' from 'AAA'
Commercial paper programme: affirmed at 'F1'
Certificate of deposit programme: affirmed at 'F1'

La Banque Postale

Long-term IDR: downgraded to 'A+' from 'AA-'; Stable Outlook
Short-term IDR: affirmed at 'F1+'
Support Rating: affirmed at '1'
Viability Rating: 'bbb'; unaffected
Senior unsecured long-term debt: downgraded to 'A+' from 'AA-'
Short-term debt: affirmed at 'F1+'

Dexia

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR downgraded to 'F1' from 'F1+'
Support rating: affirmed at '1',
Support Rating Floor: revised to 'A' from 'A+'

Dexia Funding Luxembourg:

Hybrid securities: 'C'; unaffected

Dexia Credit Local

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Senior debt: downgraded to 'A ' from 'A+'
Market linked notes: downgraded to 'Aemr' from 'A+emr'
Tier 1 hybrid securities: 'C'; unaffected
Subordinated debt: 'CCC'; unaffected
Short-term IDR: downgraded to 'F1' from 'F1+'
Commercial paper: Downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'
Support Rating Floor: revised to 'A ' from 'A+'
Long-term state guaranteed debt: 'AA'; affirmed
Short-term state guaranteed debt: 'F1+'; affirmed


SG CAPITAL: Moody's Retains Preferred Stock Rating Over Bank Cuts
-----------------------------------------------------------------
Fitch Ratings has downgraded several of BNP Paribas' (BNPP),
Credit Agricole's (CA), Societe Generale's (SG), Groupe BPCE's
(GBPCE) and CM11-CIC's related entities' Short-term ratings to
'F1' from 'F1+'. In addition, several CA's, SG's, and GBPCE's
related entities' Long-term IDRs have been downgraded to 'A' from
'A+', while several BNPP's and CM11-CIC's related entities' Long-
term IDRs have been affirmed at 'A+'. Fitch has affirmed Credit
Immobilier de France Developpement's (CIFD) related entities'
Long-term IDRs at 'A' and Short-term IDRs at 'F1'.

The rating actions follow the rating actions taken on the French
major banks. The downgrade of certain ratings of the major banks
means that Fitch considers their ability to support their
subsidiaries has decreased. In the case of cooperative groups,
the ratings of affiliated entities, whether they are part of the
mutual support mechanisms or core subsidiaries, remain aligned
with those of the group.

KEY RATING DRIVERS AND SENSITIVITIES - BNPP SUBSIDIARY AND
AFFILIATED COMPANY

The Long-and Short-term IDRs and Support Rating of BNPP's French
subsidiary BNP Paribas Securities Services are based on an
extremely high probability of support from BNPP if needed. BNP
Paribas Securities Services' Long-and Short-term IDRs are
equalised with those of BNPP as we view it as a core subsidiary
given its strategic importance to and integration with its
parent. The ratings of this subsidiary are therefore sensitive to
changes in BNP Paribas's IDRs and could also be sensitive to
changes in its strategic importance to the rest of the group. BNP
Paribas Arbitrage Issuance BV, BNP Paribas US Medium-Term Notes
Programme LLC and BNP Paribas Finance Inc are wholly owned
financing subsidiaries of BNP Paribas whose debt ratings are
aligned with those of BNP Paribas based on an extremely high
probability of support if required. These ratings are sensitive
to the same factors that might drive a change in BNPP's IDR.

KEY RATING DRIVERS AND SENSITIVITIES - CA SUBSIDIARY AND
AFFILIATED COMPANY

The Long-and Short-term IDRs and Support Rating of CA's largest
subsidiary, Credit Agricole Corporate and Investment Bank are
based on an extremely high probability of support from CA, and
ultimately of the French state, if needed. The Long-and Short-
term IDRs and Support Ratings of other subsidiaries - CA Consumer
Finance, Credit Agricole Leasing & Factoring and Le Credit
Lyonnais - are based on an extremely high probability of support
from CA if needed. The Long-and Short-term IDRs of Credit
Agricole Corporate and Investment Bank, CA Consumer Finance,
Credit Agricole Leasing & Factoring and Le Credit Lyonnais are
equalised with those of CA as we view them as core subsidiaries
given their strategic importance to and integration with their
parent. The Long- and Short-term IDRs and Support Rating of Union
de Banques Arabes et Francaises are based on a high probability
of support from CA. Its Long-term IDR is two notches below its
parent's, which is a minority shareholder, because we view Union
de Banques Arabes et Francaises as a strategically important
subsidiary rather than a core subsidiary. All these ratings are
sensitive to changes in CA's IDRs and changes in the
subsidiaries' importance to the group.

Credit Agricole North America, Credit Agricole CIB Finance
(Guernsey) and Credit Agricole CIB Financial Products (Guernsey)
are wholly owned financing subsidiaries of Credit Agricole
Corporate and Investment Bank. Their debt ratings are aligned
with those of Credit Agricole Corporate and Investment Bank based
on an extremely high probability of support if required. The
ratings are sensitive to the same factors that might drive a
change in Credit Agricole Corporate and Investment Bank's IDRs.
Eurofactor is a wholly owned subsidiary of Credit Agricole
Leasing & Factoring whose debt ratings are aligned with those of
Credit Agricole Leasing & Factoring based on an extremely high
probability of support if required. Its ratings are sensitive to
the same factors that might drive a change in Credit Agricole
Leasing & Factoring's IDRs.

KEY RATING DRIVERS AND SENSITIVITIES - SG SUBSIDIARY AND
AFFILIATED

Societe Generale Acceptance N.V., SG Option Europe and SG
Structured Products Inc. are wholly owned financing subsidiaries
of SG whose debt ratings are aligned with those of SG based on an
extremely high probability of support if required. The ratings
are sensitive to the same factors that might drive a change in
SG's IDR.

KEY RATING DRIVERS AND SENSITIVITIES - GBPCE SUBSIDIARY AND
AFFILIATED

Under the affiliation, BPCE S.A. is legally committed to maintain
adequate liquidity and solvency for its subsidiaries. The
affiliation with BPCE S.A. concerns over 100 entities, including
the Banque Populaire and Caisse d'Epargne et de Prevoyance
networks, which are also part of the cross-support mechanism, as
well as the group's primary subsidiaries (Natixis, CFF, Banque
Palatine and BPCE International Outre-Mer). The Long-and Short-
term IDRs of Natixis, Credit Foncier de France and Banque
Palatine are equalised with those of GBPCE as we view them as
core subsidiaries given their affiliation to BPCE S.A. The
affiliated subsidiaries' IDRs will therefore continue to move in
tandem with those of GBPCE unless there is a change in the
affiliation status, which Fitch views as extremely unlikely. For
Natixis, given its large size compared to the group, the Long-and
Short-term IDRs and Support Ratings are also based on an
extremely high probability of ultimate support of the French
state, if needed. Given Natixis's, Credit Foncier de France's and
Banque Palatine's affiliation to and extremely strong integration
within GBPCE, they have not been assigned a VR.

KEY RATING DRIVERS AND SENSITIVITIES - CM11-CIC SUBSIDIARY AND
AFFILIATED

The Long-and Short-term IDRs and Support Rating of CM11-CIC's
French subsidiary CIC are based on an extremely high probability
of support from CM11-CIC and ultimately of the French state, if
needed. Given its strong integration with and high strategic
importance to CM11-CIC, Credit Industriel et Commercial (CIC) is
seen as a core subsidiary of CM11-CIC and its respective IDRs are
aligned with those of CM11-CIC. CIC's ratings are therefore
sensitive to any changes in CM11-CIC's ratings. CIC, which
handles part of the group's retail banking business and acts as
the group's corporate and investment banking subsidiary, has not
been assigned a VR as it lacks the strategic autonomy to be
meaningfully assessed on a standalone basis. Banque Europeenne du
Credit Mutuel is a wholly owned subsidiary of Banque Federative
du Credit Mutuel (BFCM, CM11-CIC's entity for controlling its
subsidiaries) whose debt ratings are aligned with those of BFCM
based on an extremely high probability of support if required.
Its ratings are sensitive to the same factors that might drive a
change in BFCM's IDRs.

KEY RATING DRIVERS AND SENSITIVITIES - CIFD SUBSIDIARY AND
AFFILIATED

The Long- and Short-term IDRs assigned to CIFD apply to the
following entities that are part of the group, because of the
cross-support mechanism in place between all group entities: nine
regional financial subsidiaries (societes financieres regionales)
and Banque Patrimoine et Immobilier and Societe pour L'Accession
a la Propriete (SOFIAP). If any of the entities were sold or left
CIFD's cross-support mechanism, Fitch would subsequently review
its ratings, taking into account the entity's new ownership.

KEY RATING DRIVERS AND SENSITIVITIES - DEBT GUARANTEED BY CAISSE
DES DEPOTS ET CONSIGNATIONS

Natixis's long-term debt guaranteed by Caisse des Depots et
Consignations has been downgraded to 'AA+' to reflect the
downgrade of this institution to 'AA+'. Natixis's short-term debt
guaranteed by Caisse des Depots et Consignations has been
affirmed at 'F1+' in line with that of Caisse des Depots et
Consignations. The ratings will continue to move in line with
those of the guarantor.

KEY RATING DRIVERS AND SENSITIVITIES - UNION FINANCE GRAINS
GUARANTEED DEBT

UFG's French CP programme's Short-term rating is based on
guarantees for issues under the programme by four banks (Credit
Agricole Corporate and Investment Bank (A/F1), Le Credit Lyonnais
(A/F1), Credit Cooperatif (A/F1) and Banque Europeenne du Credit
Mutuel (A+/F1) and Fitch's view that the banks honour their
guarantees if required. The Short-term ratings assigned to the CP
individually would move in tandem with the Short-term IDRs of the
banks guaranteeing the CP.

KEY RATING DRIVERS AND SENSITIVITIES - SUBORDINATED DEBT AND
OTHER HYBRID SECURITIES

Subordinated debt and other hybrid capital issued by subsidiaries
are notched down from their parent banks' VR in accordance with
Fitch's assessment of each instrument's respective non-
performance and relative loss severity risk profiles, which vary
considerably. Their ratings are primarily sensitive to any change
in the parent banks' VRs.

The rating actions are:

BNPP Subsidiaries and Affiliates
BNP Paribas Securities Services:

Long-term IDR: Long-term IDR: 'A+'; Stable Outlook; unaffected
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'

BNP Paribas Arbitrage Issuance BV

Guaranteed senior unsecured notes: 'A+'; unaffected
Debt issuance programme: 'A+'; unaffected
Short-term debt: downgraded to 'F1' from 'F1+'
Market linked securities: 'A+emr'; unaffected
Market linked guaranteed securities: 'A+emr'; unaffected

BNP Paribas Finance Inc.

Commercial paper: downgraded to 'F1' from 'F1+'

BNP Paribas US Medium-Term Notes Programme LLC

EMTN programme: 'A+'; unaffected and Short-term downgraded to
'F1' from 'F1+'
Guaranteed senior notes: 'A+'; unaffected
Market linked securities: 'A+emr'; unaffected
Market linked guaranteed securities: 'A+emr'; unaffected
Subordinated debt: 'A'; unaffected

CA Subsidiaries and Affiliates
CA Preferred Funding Trust, CA Preferred Funding Trust II, CA
Preferred Funding Trust III:

Preferred stock: 'BBB-'; unaffected

Credit Agricole North America:

Commercial paper: downgraded to 'F1' from 'F1+'

Credit Agricole Corporate and Investment Bank:

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating affirmed at '1'
Senior debt: downgraded to 'A' from 'A+'
Senior debt: 'AAA(tha)'; unaffected
Market-linked securities: downgraded to 'Aemr' from 'A+emr'
Short-term debt: downgraded to 'F1' from 'F1+'

Credit Agricole CIB Finance (Guernsey):

Senior debt: downgraded to 'A' from 'A+'
Market-linked guaranteed securities: downgraded to 'Aemr' from
  'A+emr'
Guaranteed Notes: downgraded to 'A' from 'A+'
Short-term debt: downgraded to 'F1' from 'F1+'

Credit Agricole CIB Financial Products (Guernsey):

Senior debt: downgraded to 'A' from 'A+'
Senior guaranteed securities: downgraded to 'A' from 'A+'
Market-linked guaranteed securities: downgraded to 'Aemr' from
  'A+emr'
Short-term debt: downgraded to 'F1' from 'F1+'

Credit Agricole Corporate and Investment Bank (South Africa
Branch):

Long-term senior debt: Affirmed at 'AAA(zaf)'

CA Consumer Finance:

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'
Senior debt: downgraded to 'A' from 'A+'
Short-term debt: downgraded to 'F1' from 'F1+'

Credit Agricole Leasing & Factoring:

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'

Eurofactor

Certificate of Deposit: downgraded to 'F1' from 'F1+'

Le Credit Lyonnais (LCL):

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Viability Rating: 'a-' unaffected
Support Rating: affirmed at '1'
Certificates of Deposit: downgraded to 'F1' from 'F1+'
"Bons a Moyen Terme Negociables" (BMTN): downgraded to 'A' from
   'A+'

Union de Banques Arabes et Francaises:

Long-term IDR: downgraded to 'BBB+' from 'A-'; Stable Outlook
Short-term IDR: downgraded to 'F2' from 'F1'
Viability Rating: 'bbb-' unaffected
Support Rating: downgraded to '2' from '1'
Certificates of Deposit: downgraded to 'F2' from 'F1'

SG Subsidiaries and Affiliates
Societe Generale Acceptance N.V.

Market-linked guaranteed notes: downgraded to 'Aemr' from
'A+emr'
EMTN programme: Long-term downgraded to 'A' from 'A+' and Short-
  term downgraded to 'F1' from 'F1+'
Senior long-term notes: downgraded to 'A' from 'A+'
Short-term notes: downgraded to 'F1' from 'F1+'
Senior guaranteed notes: downgraded to 'A' from 'A+'

SG Option Europe

EMTN programme: Long-term downgraded to 'A' from 'A+' and Short-
term downgraded to 'F1' from 'F1+'

SG Capital Trust III

Preferred stock: 'BB+'; unaffected

SG Structured Products Inc

Senior unsecured notes: downgraded to 'A' from 'A+'; Stable
  Outlook
Senior guaranteed notes: downgraded to 'A' from 'A+'

Credit du Nord

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Viability Rating: 'bbb+;' unaffected
Support Rating: affirmed at '1'
Long-term debt: downgraded to 'A' from 'A+'
BMTN programme: downgraded to 'A' from 'A+'
EMTN programme: Long-term downgraded to 'A' from 'A+' and Short-
  term downgraded to 'F1' from 'F1+'
Certificate of deposits: downgraded to 'F1' from 'F1+'

GBPCE Subsidiaries and Affiliates
Natixis:

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'
Senior unsecured debt: downgraded to 'A' from 'A+'
Market linked notes: downgraded to 'Aemr' from 'A+emr'
Lower Tier 2: 'BBB+'; unaffected
Hybrid capital instruments: 'BB+'; unaffected
BMTN programme: downgraded to 'A' from 'A+'
EMTN programme: Long-term downgraded to 'A' from 'A+' and Short-
  term downgraded to 'F1' from 'F1+'
Debt issuance programme guaranteed by Caisse des Depots et
  Consignations (CDC): Long-term downgraded to 'AA+' from 'AAA'
  and Short-term affirmed at 'F1+'
Debt issuance programme guaranteed by BPCE S.A.: Long-term
  downgraded to 'A' from 'A+' and Short-term downgraded to 'F1'
  from 'F1+'
Senior unsecured debt guaranteed by Caisse des Depots et
  Consignations (CDC): downgraded to 'AA+' from 'AAA'
Certificate of deposit: downgraded to 'F1' from 'F1+'
Commercial paper: downgraded to 'F1' from 'F1+'

NBP Capital Trust I

Preferred stock: 'BB+'; unaffected

Credit Foncier de France

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'
BMTN programme: downgraded to 'A' from 'A+'
EMTN programme: long-term downgraded to 'A' from 'A+' and short-
  term downgraded to 'F1' from 'F1+'
Senior unsecured debt: downgraded to 'A' from 'A+'
Certificate of deposits: downgraded to 'F1' from 'F1+'

Banque Palatine

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
Support Rating: affirmed at '1'
BMTN Programme: downgraded to 'A' from 'A+'
Certificate of Deposits: downgraded to 'F1' from 'F1+'

The following entities' Long-term IDRs have been downgraded from
'A+' to 'A' Stable Outlook and their Short-term IDRs have been
downgraded to 'F1' from 'F1+':

Banque Populaire Atlantique
Banque Populaire Bourgogne, Franche-Comte
Banque Populaire Aquitaine Centre Atlantique
Banque Populaire Cote d'Azur
Banque Populaire d'Alsace
Banque Populaire de l'Ouest
Banque Populaire de Lorraine-Champagne
Banque Populaire des Alpes
Banque Populaire du Massif-Central
Banque Populaire du Nord
Banque Populaire du Sud
Banque Populaire Loire et Lyonnais
Banque Populaire Occitane
Banque Populaire Provencale et Corse
Banque Populaire Rives de Paris
Banque Populaire Val-de-France
BRED - Banque Populaire
CASDEN - Banque Populaire
Groupe Credit Cooperatif
Credit Maritime Mutuel
Caisse d'Epargne et de Prevoyance d'Alsace
Caisse d'Epargne Aquitaine Poitou Charentes
Caisse d'Epargne et de Prevoyance d'Auvergne et du Limousin
Caisse d'Epargne et de Prevoyance de Bourgogne Franche-Comte
Caisse d'Epargne et de Prevoyance Bretagne-Pays de Loire
Caisse d'Epargne et de Prevoyance Cote d'Azur
Caisse d'Epargne et de Prevoyance Ile-de-France
Caisse d'Epargne et de Prevoyance du Languedoc Roussillon
Caisse d'Epargne et de Prevoyance Loire-Centre
Caisse d'Epargne et de Prevoyance Loire Drome Ardeche
Caisse d'Epargne et de Prevoyance de Lorraine Champagne-Ardenne
Caisse d'Epargne et de Prevoyance de Midi Pyrenees
Caisse d'Epargne et de Prevoyance Nord France Europe
Caisse d'Epargne et de Prevoyance Normandie
Caisse d'Epargne et de Prevoyance de Picardie
Caisse d'Epargne et de Prevoyance Provence Alpes Corse
Caisse d'Epargne et de Prevoyance de Rhone Alpes

Credit Cooperatif:

Long-term IDR: downgraded to 'A' from 'A+'; Stable Outlook
Short-term IDR: downgraded to 'F1' from 'F1+'
BMTN Programme: downgraded to 'A' from 'A+'
Commercial paper: downgraded to 'F1' from 'F1+'

CM11-CIC Subsidiaries and Affiliates

Credit Industriel et Commercial

  Long-term IDR: 'A+'; Stable Outlook; unaffected
  Short-term IDR: downgraded to 'F1' from 'F1+'
  Support Rating: affirmed at '1'
  Senior unsecured debt: 'A+'; unaffected
  BMTN programme: 'A+'; unaffected
  Certificates of deposit: downgraded to 'F1' from 'F1+'

Banque Europeenne du Credit Mutuel

  BMTN program : 'A+'; unaffected

CIFD Subsidiaries and Affiliates

The 'A' Long-term and 'F1' Short-term IDRs of the below entities
have been affirmed:

Credit Immobilier de France Bretagne (CIFD group)
Credit Immobilier de France Centre-Ouest (CIFD group)
Credit Immobilier de France Ile-de-France (CIFD group)
Credit Immobilier de France Mediterranee (CIFD group)
Credit Immobilier de France Nord (Group CIFD)
Credit Immobilier de France Ouest (CIFD group)
Credit Immobilier de France Sud-Ouest (CIFD group)
Credit Immobilier de France R.A.A. (CIFD group)
Credit Immobilier de France Centre Est (CIFD group)
Societe Financiere pour L'Accession a La Propriete (CIFD group)
Banque Patrimoine et Immobilier (BPI) (CIFD group)

Union Finances Grains

Commercial paper guaranteed by Credit Agricole Corporate and
  Investment Bank: Downgraded to 'F1' from 'F1+'
Commercial paper guaranteed by Le Credit Lyonnais: downgraded to
  'F1' from 'F1+'
Commercial paper guaranteed by Credit Cooperatif: downgraded to
  'F1' from 'F1+'
Commercial paper guaranteed by Banque Europeenne du Credit
   Mutuel: downgraded to 'F1' from 'F1+'


SPCM S.A.: S&P Raises LT Corporate Credit Rating to 'BB+'
---------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on France-based chemicals producer SPCM S.A. to
'BB+' from 'BB'.

At the same time, S&P raised its issue ratings on SPCM's existing
EUR300 million senior unsecured notes to 'BB+' from 'BB'.  The
recovery ratings remain unchanged at '4', reflecting S&P's
expectation of average (30%-50%) recovery for creditors in the
event of a payment default.

The rating actions reflect S&P's view that SPCM's performance
will remain resilient in 2013 and beyond, thanks to its
favorable, recession-resilient end-market mix and new capacities
constantly coming on-stream and capturing strong market growth.
Combined with modest maintenance capital expenditure (capex) and
high capex flexibility, this should help SPCM sustain FFO to debt
in the 25%-30% range, even assuming 12.5% EBITDA margins, which
is below 13.5% in 2012, and modest volume increases.

"Under our base case, we forecast that SPCM's performance will be
strong.  We estimate EBITDA of about EUR250 million-EUR260
million in 2013, compared with the EUR240 million we had
previously anticipated for the year.  We view the resilience of
SPCM's operating performance to general economic cyclicality as a
positive.  This is because SPCM is strongly positioned in
countercyclical, recession-resistant sectors, such as water
treatment (47% of 2012 sales) and enhanced oil and gas recovery
(EOR; 23%).  We anticipate robust EOR growth on continually high
capex in the oil & gas industry amid favorable hydrocarbon prices
and a higher share of EOR applications.  Furthermore, given
SPCM's favorable contract clauses, we anticipate that it will
continue passing higher raw material prices (especially
propylene) to customers as it has done previously.  We view
positively SPCM's limited exposure to Europe: only 24% of 2012
revenues, while North America was 50% and Asia 22%," S&P said.

"SPCM's strategy remains strongly focused on organic growth.
Under our base case, we believe that SPCM will fully use its
internally generated cash flows to support its capex, which we
believe could amount to about EUR160 million in 2013.  However,
while SPCM is likely to generate moderately negative free
operating cash flow (FOCF) in 2013 and later years, as a result
of high investments, we take a positive view of its significantly
flexible capex.  We recognize that it could materially reduce
capex if needed, as it did during the 2008-2009 crisis.
Maintenance capex is very modest: about EUR20 million per year.
We estimate that SPCM's FFO-to-debt ratio could be about 28% at
year-end 2013 and in 2014, compared with 32% at year-end 2012,
but still comfortable for the current rating," S&P added.

"We assess SPCM's business risk profile as "satisfactory", under
our criteria.  We base this assessment on its world market
leadership in polyacrylamide polymers to treat municipal and
industrial water (47% of total 2012 sales) and to alter the
viscosity of water injected in tight oil and gas developments
(23% of sales).  SPCM is the largest producer in the world of
polyacrylamides, and reported a 43% share of end-2012 global
production capacity.  The company has posted exceptional organic
growth, expanding its capacity to 615 thousand tonnes (kt) at
year-end 2012 from 420kt at year-end 2009.  Negative factors
affecting SPCM's business risk include its limited product
diversity through its presence in what we view as a niche market,
sizable expansionary capex, and the presence of several
competitors, notably in China," S&P noted.

S&P's assessment of SPCM's financial risk profile, at the high
end of the "significant" category, factors in SPCM's focus on
growth and subsequent funding needs for capex and working
capital.  Under S&P's base-case scenario, these significant
investments limit free cash flow over the medium term, as in the
past.  S&P also views recourse to debt (including secured bank
debt) as material.

Positive factors, however, are its better-than-peer stability of
credit metrics, as demonstrated in 2009.  S&P also views the
company as having intrinsically stronger free cash flow ability,
if and when growth falls and if its maintenance capex is only
about EUR20 million annually (compared with anticipated capex of
about EUR160 million in 2013 and 2014).  S&P views favorably
SPCM's recent track record of refinancing well ahead of maturity,
and S&P anticipates it will continue to do so.  Lastly, S&P also
expects acquisitions and shareholder distributions to remain low,
at less than EUR10 million per year in total, and therefore view
SNF's family ownership as a neutral credit factor at the current
rating level.

The stable outlook reflects S&P's view that SPCM will deliver
healthy operating performance over the short-to-medium term,
notably benefiting from an increasing presence in the oil & gas
industry.  Under S&P's base-case scenario, it assumes that SPCM
will generate moderate negative free cash flow and sustain a
ratio of adjusted FFO to debt of about 25%-30%, which S&P views
as commensurate with the 'BB+' rating.

Downward rating pressure could build if the company's investments
were not adequately supported by its cash flows, leading to
higher-than-currently-anticipated negative FOCF generation and
adjusted FFO to debt declining to below 25% without near-term
recovery prospects.  S&P could also lower the rating if it
believed that headroom under financial covenants had tightened.

S&P is unlikely to raise the rating at this stage, reflecting its
forecast of ongoing neutral-to-moderately-negative FOCF.  This is
due to high investments as the company reinvests all FFO in
expansionary capex.



=============
G E R M A N Y
=============


OETINGER: Files for Insolvency; Rescue Options Mulled
-----------------------------------------------------
Aluminium International Today reports that Oetinger has filed for
insolvency.

It is thought administrators will be trying to save the company
rather than dissolve it, as it is the largest foundry producer in
Europe, Aluminium International Today discloses.

The news of Oetinger's insolvency has led to a rise in ingot
prices in the European secondary aluminium market, especially in
the UK, Aluminium International Today notes.

Oetinger is a German aluminium company.  It is one of the largest
buyers of aluminum scrap and a secondary aluminium producer with
a capacity of 300kt/yr.


SCHAEFFLER HOLDING: Moody's Rates EUR1.5-Bil. Notes Issue 'B2'
--------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating, with a loss
given default (LGD) assessment of LGD5 75%, to Schaeffler's
proposed EUR1.5 billion of Senior Secured Notes to be issued by
Schaeffler Holding Finance B.V.

Schaeffler's B1 corporate family rating (CFR) and B1-PD
probability of default rating (PDR) are not affected. The outlook
on all ratings is positive.

Ratings Rationale:

Proceeds from Schaeffler's announced debt issuance will be used
to completely refinance its existing junior indebtedness (i.e.
Junior Term Loans, Junior Zero Coupon Bond and Junior RCF).

The B2 rating assigned to the senior secured notes issued by
Schaeffler Holding Finance B.V. is one notch below the group's
CFR and reflects the legally and structurally subordinated
position of these bonds compared to the debt which is located at
the level of Schaeffler AG and its subsidiaries. At the same
time, these notes, to be issued by Schaeffler Holding Finance
B.V., and other debt located at the junior level accounting for
in total of EUR3.675 billion (excl. RCF) are benefitting from a
pledge over shares in Continental AG which are held by Schaeffler
Verwaltungs GmbH. These shares account for 13.8% of Continental's
share capital and per July 16, 2013 have a market value of
approximately EUR3.07 billion. This pledge to some extent
mitigates the junior position of the notes, increasing the LGD
leading to only a one notch downgrade for the notes compared to
the CFR.

The B1 corporate family rating is supported by Schaeffler's solid
business profile evidenced by (i) leading market positions in the
bearings and automotive component and systems market with number
one to three positions across the wide ranging product portfolio
in a relatively consolidated industry; (ii) its leading
mechanical engineering technology platform supporting a
competitive cost structure and the development of innovative
products; (iii) a well-diversified customer base, especially in
the Industrial division, but also to the extent possible in the
consolidated automotive industry and a sizable aftermarket
business which accounts for more than 20% of group revenues.

The rating also benefits from (iv) Schaeffler's proven business
model with a good track record of operating performance and
margin levels well above the automotive supplier industry
average; (v) an experienced management team as well as (vi) a
good innovative power evidenced by a high number of patents,
founded on a notable amount of R&D expenses of above 5% of
revenues per year.

The rating is constrained by (i) the combined high indebtedness
and leverage of the operating level ("Schaeffler Group" or
"Schaeffler AG") and the holding level, the latter of which also
includes the junior debt incurred by parent companies of
Schaeffler AG; (ii) the organizational and legal complexity and
evolving structure of Schaeffler in its current state as well as
(iii) Moody's expectation that debt levels will not be materially
reduced over the short to medium term as (iv) free cash flow
generation will be challenged by high interest expense,
increasing capital expenditure and dividend payments to the
holding level - despite strong operating performance.

The positive outlook incorporates Moody's expectation that
Schaeffler will (i) be able to maintain its solid operating
performance with further improvements of the absolute amount of
EBITDA over the next two to three years even though Moody's
believes that margins might have reached their peak in 2011; (ii)
be able to generate at least slightly positive free cash flows
over the next two to three years and (iii) apply these to debt
reduction.

The ratings could be upgraded over the next 12-18 months should
Schaeffler be able to (i) generate sustainably positive free cash
flows which would be applied to a further debt reduction that
would also contribute to (ii) a sustainable reduction of its high
leverage (Debt/EBITDA) to no more than 4.25x. These performance
achievements should go along with unchanged or improved market
positions and technological leadership positions.

The ratings could come under pressure in case of (i) a
significant weakening in Schaeffler's operating performance and
cash flow generation evidenced by EBIT margins below 15% and
material negative free cash flow; (ii) inability to sustain its
current leverage of below 4.75x over the coming years as well as
(iii) weakening of its liquidity profile including the possible
failure to perform within the currently comfortable headroom
under its financial covenants.

As of March 31, 2013 Moody's considers Schaeffler Group's short
term liquidity over the next 12 months to be adequate. Based on
Moody's calculation the company has access to cash sources of
more than EUR2.6 billion comprising a cash balance of EUR458
million (thereof a minor portion of restricted cash), expected
FFO, and a revolving credit facility of EUR1.0 billion currently
mostly undrawn. Cash uses consisting of working capital
requirements, capex, working cash for day to day needs as well as
cash needs upstreamed to the holding level for payment of taxes,
interest payment and operating / advisory costs should be fully
covered by the sources. Given the expected limited free cash flow
generation in the next couple of years, the ability to refinance
existing debt when it comes due will be a key challenge for
Schaeffler Group. At the same time Moody's notes that Schaeffler
has no near-term debt maturities.

Structural Considerations

When assessing the structure of Schaeffler's liabilities Moody's
includes the junior debt located at the level of Schaeffler
Verwaltungs GmbH, Schaeffler Holding GmbH & Co. KG and Schaeffler
Holding Finance B.V. This debt is secured by pledges over
Continental shares held by Schaeffler Verwaltungs GmbH as well as
shares in Schaeffler AG. This assessment is consistent with
Moody's approach when assessing the corporate family rating of
Schaeffler AG, given the absence of a complete ring-fencing
between Schaeffler AG and its subsidiaries from the holding
level.

Moody's views the junior debt as legally and structurally
subordinated to the senior debt at Schaeffler AG level as well as
to trade claims, pension obligations and lease rejection claims
at operating entities.

Principal Methodology

The principal methodology used in this rating was the Global
Automotive Supplier Industry published in May 2013. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Headquartered in Herzogenaurach, Germany, Schaeffler is a leading
manufacturer of rolling bearings and linear products worldwide as
well as a renowned supplier to the automotive industry. The
company develops and manufactures precision products for
everything that moves -- in machines, equipment and vehicles as
well as in aviation and aerospace applications. The group
operates under three main brands -- INA, FAG and LuK. In the 12-
months period ended March 31, 2013, Schaeffler AG generated
revenues of approximately EUR11.0 billion.


TALISMAN 7: Fitch Downgrades Rating on Class F Notes to 'C'
-----------------------------------------------------------
Fitch Ratings has downgraded Talisman 7 plc's notes as follows:

  EUR333.8m class A: downgraded to 'BBBsf' from 'Asf'; Outlook
  Negative

  EUR87.3m class B: downgraded to 'BBsf' from 'BBBsf'; Outlook
  Negative

  EUR84.2m class C: downgraded to 'Bsf' from 'BBsf'; Outlook
  Negative

  EUR66.5m class D: affirmed at 'CCCsf'; Recovery Estimate (RE)
  30%

  EUR47.1m class E: downgraded to 'CCsf' from 'CCCsf'; RE0%

  EUR68.9m class F: downgraded to 'Csf' from 'CCsf'; RE0%

Key Rating Drivers

The downgrades of the class A to C notes are driven by the
lowered recovery prospect of the EUR418 million participation in
the Mozart loan, the largest position in the pool (at 55%). It is
the securitized portion of a EUR670 million syndicated loan
secured by a portfolio of 61 (originally 107) mixed-use
properties across 29 German cities. Portfolio value as reported
in October 2012 was EUR460.4 million, representing a securitized
loan-to-value ratio (LTV) of 121% and a whole LTV of 146%.

The portfolio is characterized by high vacancy -- 33.9% was
reported in April -- and very high operating expenses, which
range between 40% and 45% of rental income. Following a
comprehensive debt restructuring in April 2011, the borrower
entered into a staged sell down of the portfolio, alongside an
asset by asset program of refurbishment and re-letting.

Since Fitch's last rating action, 20 properties have been sold,
allowing the loan to amortize by EUR80 million. The special
servicer's asset sales are on average 9.4% above reported values,
although this solid performance may be due to positive selection,
leaving the remaining portfolio of weaker quality. Moreover, with
such a high level of operating and capital expenditure as well as
sales costs, future recoveries could come in below reported
values, warranting an overall Outlook Negative.

In the past year, all the properties securing the nine loans in
the pool have been revalued. Apart from the Hof loan, all the
loans are now being specially serviced. Eight loans have an LTV
in excess of 90%, of which six are in excess of 100%. This high
degree of leverage is reflected by the distressed ratings of the
classes D to F notes.

Rating Sensitivities

Slow progress in disposing of the 121 properties securing the
nine loans in the pool could lead to further downgrades,
especially with legal final maturity of the notes falling in
April 2017.



===========
G R E E C E
===========


* GREECE: Parliament Approves New Batch of Austerity Measures
-------------------------------------------------------------
Derek Gatopoulos at The Associated Press reports that Greece's
Parliament narrowly approved a new batch of austerity measures
early Thursday, including thousands of public-sector job cuts and
transfers, demanded by the country's creditors to keep vital
bailout loans flowing.

Lawmakers in the 300-seat house backed the cutbacks in an
article-by-article vote, with two of the governing coalition's
155 deputies failing to back crucial articles, the AP relates.

Greece has been kept out of bankruptcy since it started receiving
rescue loans in 2010 from the International Monetary Fund and
other countries using the euro, but austerity measures imposed in
return have caused a dramatic increase in poverty and
unemployment, the AP notes.

The new legislation will put 12,500 public-sector staff, mostly
teachers and municipal workers, in a program that subjects them
to involuntary transfers and possible dismissals, the AP
discloses.  It will also pave the way for 15,000 layoffs by the
end of next year, the AP states.

According to the AP, the crucial after-midnight vote came hours
before a visit to Athens by German Finance Minister
Wolfgang Schaeuble, planned amid security measures that Greece's
left-wing main opposition party denounced as "fascist and
undemocratic."

The measures include a ban of all demonstrations in the city
center, including the area outside Parliament that has been the
focus of past violent protests, the AP says.

The 13-month-old coalition government claims it has already made
progress in stabilizing the shattered economy, the AP relates.
On Wednesday, Mr. Samaras made a televised statement to announce
a sales tax cut for restaurant and catering services from 23
percent to 13% -- the first tax reduction since the crisis
started in late 2009, the AP relates.

Greece's lurching attempts to implement its austerity pledges,
coupled with political upheaval in Portugal -- which is also in a
bailout program -- have renewed fears that Europe's debt troubles
could flare up again, the AP notes.

According to the AP, Mr. Samaras was due to hold talks yesterday
with Mr. Schaeuble, who was expected to discuss a program of
German support for small and medium-sized Greek businesses.  And
on Sunday, he will meet with U.S. Treasury Secretary Jacob Lew,
who will stop in Athens on his way back from a G-20 meeting in
Moscow, the AP discloses.



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


MAGYAR TELECOM: Payment Default Cues Moody's to Cut CFR to 'Ca'
---------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Magyar Telecom B.V. to Ca from Caa3, and the probability of
default rating to Ca-PD/LD from Caa3-PD. Concurrently, Moody's
has downgraded Invitel's EUR350 million 9.5% senior secured notes
due 2016 to Ca from Caa3. The outlook on the ratings remains
negative.

Ratings Rationale:

The limited default "/LD" indicator applied to the PDR follows
the non-payment of interest on the senior secured notes, at the
end of the 30-day grace period from the scheduled interest
payment date of June 15, 2013.

On July 15, 2013, the company announced that it had reached an
agreement regarding a proposed debt restructuring with a group of
noteholders, representing around 40% of the net outstanding notes
of EUR329 million. Under the proposed restructuring, around
EUR155 million of the notes would be retained or exchanged into
new notes bearing interest at 9% (7% of which would be payable in
cash, subject to a PIK toggle, and 2% PIK). The remaining EUR174m
i.e. about 53% of the senior secured notes will be converted into
49% of the pro-forma post-restructuring equity in the group.

The sponsor, Mid Europe Partners, will also inject some limited
funding as equity (and debt) that will allow it to retain 51% of
the pro-forma post-restructuring equity in the group.

The downgrade of the CFR and the rating of the notes to Ca
reflects the likely expected loss of the current noteholders
under the proposed restructuring which would see around 53% of
the outstanding amount of the notes exchanged into equity. The
outlook on Invitel's ratings remains negative to reflect the
uncertainty over the final shape of the company's capital
structure.

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



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


CLAREGALWAY HOTEL: Purchased Out Of Receivership
------------------------------------------------
Lorraine O'Hanlon at Galway Independent reports that the
Claregalway Hotel has been purchased out of receivership for
EUR1.5 million by Managing Director Paul Gill and wife Nora, who
have run the hotel for the past nine years.

Mr. Gill said he believes that, with the right marketing
approach, Galway's tourism industry has a very bright future
ahead and that this confidence was a key factor when he and his
wife decided to purchase the three-star 48 bedroom hotel, which
employs 81 staff, according to Galway Independent.

The report relates that according to Mr. Gill, an important focus
for the hotel following the buyout is targeting international
tours and growing European markets such as France, Germany and
Italy.

Galway Independent discloses that Galway hoteliers are looking
forward to this year's Galway Races and are seeing a significant
pick-up in business and advance bookings compared with last year,
according to Mr. Gill, the report adds.


EUROCREDIT CDO V: Moody's Lowers Rating on Class D Notes to Ba2
---------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of the
following notes issued by Eurocredit CDO V PLC:

  EUR27M Class D Notes, Downgraded to Ba2 (sf); previously on Sep
  29, 2011 Upgraded to Ba1 (sf)

  EUR24M (currently EUR15.7M outstanding) Class E Notes,
  Downgraded to B1 (sf); previously on Sep 29, 2011 Upgraded to
  Ba3 (sf)

Moody's also upgraded the rating of the combination notes issued
by Eurocredit CDO V PLC:

  EUR6M (currently EUR3.2M outstanding) Class V Notes, Upgraded
to
  Baa1 (sf); previously on Sep 29, 2011 Upgraded to Baa3 (sf)

Moody's also affirmed the ratings of the following notes issued
by Eurocredit CDO V PLC:

  EUR210M (currently EUR169.8M outstanding) Class A-1 Notes,
  Affirmed Aaa (sf); previously on Sep 12, 2006 Assigned Aaa (sf)

  EUR120M (currently EUR77.7M outstanding) Class A-2 Notes,
  Affirmed Aaa (sf); previously on Sep 12, 2006 Assigned Aaa (sf)

  EUR72M Class A-3 Notes, Affirmed Aa1 (sf); previously on Sep
29,
  2011 Upgraded to Aa1 (sf)

  EUR42M Class B Notes, Affirmed A1 (sf); previously on Sep 29,
  2011 Upgraded to A1 (sf)

  EUR36M Class C Notes, Affirmed Baa1 (sf); previously on Sep 29,
  2011 Upgraded to Baa1 (sf)

Eurocredit CDO V PLC, issued in September 2006, is a
multicurrency Collateralized Loan Obligation ("CLO") backed by a
portfolio of mostly high yield senior secured European loans. The
portfolio is managed by Intermediate Capital Managers Limited.
This transaction passed its reinvestment period in September
2012.

Ratings Rationale:

According to Moody's, the rating actions taken on the notes
primarily reflect an increase in defaults and a deterioration in
the overcollateralization ratios ("OC ratios") despite the
substantial principal repayment on the rated notes on the last
payment date in March 2013. The Class A-1 and A-2 notes have
amortized by approximately EUR55 million (or 18%) since the end
of the reinvestment period in September 2012.

The OC ratios have steadily deteriorated since the last rating
action in September 2011. As of the latest trustee report dated
June 12, 2013, the Class A/B, Class C, Class D and Class E OC
ratios are reported at 125.5%, 114.1%, 106.9% and 103.1%,
respectively, as compared to 126.3%, 116.2%, 109.7% and 105.5%,
respectively, of 12 months ago. Since the last rating action in
September 2011, the Class A/B, Class C, Class D and Class E OC
ratios have decreased by 4.7%, 5.5%, 5.9% and 4.8%, respectively.
Currently the Class D and Class E OC tests are in breach.

Moody's upgraded the rating of the Class V combination notes. The
ratings of the combination notes address the repayment of the
Rated Balance on or before the legal final maturity. For Class V,
the 'Rated Balance' is equal at any time to the principal amount
of the combination notes on the issue date minus the aggregate of
all payments made from the issue date to such date, either
through interest or principal payments. The Rated Balance may not
necessarily correspond to the outstanding notional amount
reported by the trustee. The current outstanding Rated Balance of
Class V is EUR3.2 million which is 92% covered by the Class C
component of the notes.

Moody's notes that the key model inputs used by Moody's in its
analysis, such as par, weighted average rating factor, diversity
score, and weighted average recovery rate, are based on its
published methodology and may be different from the trustee's
reported numbers. In its base case, Moody's analyzed the
underlying collateral pool to have a performing par and principal
proceeds balance of EUR454 million, defaulted par of EUR17.2
million, a weighted average rating factor of 3191 (corresponding
to a default probability of 20.78% over 3.67 years), a weighted
average recovery rate upon default of 44.29% for a Aaa liability
target rating, a diversity score of 39 and a weighted average
spread of 3.76%. The default probability is derived from the
credit quality of the collateral pool and Moody's expectation of
the remaining life of the collateral pool. The average recovery
rate to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool. For a Aaa
liability target rating, Moody's assumed that 85.4% of the
portfolio exposed to senior secured corporate assets would
recover 50% upon default, while the remainder non-first-lien loan
corporate assets would recover 15%. In each case, historical and
market performance trends and collateral manager latitude for
trading the collateral are also relevant factors. These default
and recovery properties of the collateral pool are incorporated
in cash flow model analysis where they are subject to stresses as
a function of the target rating of each CLO liability being
reviewed.

In addition to the base case analysis, Moody's also performed
sensitivity analyses on key parameters for the rated notes, which
includes deteriorating credit quality of portfolio to address the
refinancing and sovereign risks. Approximately 17% of the
portfolio are European corporate rated B3 and below and maturing
between 2014 and 2016, which may create challenges for issuers to
refinance and around 16.5% of the portfolio are exposed to
obligors located in Ireland, Italy and Spain. Moody's considered
a model run where the base case WARF was increased to 3866 by
forcing ratings on 25% of refinancing and sovereign risk
exposures to Ca. This run generated model outputs that were
within one notch from the base case results.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the
ratings of the notes, as evidenced by 1) uncertainties of credit
conditions in the general economy and 2) the large concentration
of speculative-grade debt maturing between 2014 and 2016 which
may create challenges for issuers to refinance. CLO notes'
performance may also be impacted either positively or negatively
by 1) the manager's investment strategy and behavior and 2)
divergence in legal interpretation of CDO documentation by
different transactional parties due to embedded ambiguities.

Sources of additional performance uncertainties:

1) Deleveraging: The main source of uncertainty in this
transaction is the pace of amortization of the underlying
portfolio. Pace of amortization could vary significantly subject
to market conditions and this may have a significant impact on
the notes' ratings. In particular, amortization could accelerate
as a consequence of high levels of prepayments in the loan market
or collateral sales by the liquidation agent or be delayed by
rising loan amend-and-extend restructurings. Fast amortization
would usually benefit the ratings of the senior notes but may
negatively impact the mezzanine and junior notes.

2) Moody's also notes that around 51% of the collateral pool
consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. Large single exposures
to obligors bearing a credit estimate have been subject to a
stress applicable to concentrated pools as per the report titled
"Updated Approach to the Usage of Credit Estimates in Rated
Transactions" published in October 2009.

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

4) Foreign currency exposure: The deal has significant exposure
to non-EUR denominated assets. Volatilities in foreign exchange
rate will have a direct impact on interest and principal proceeds
available to the transaction, which may affect the expected loss
of rated tranches.

The principal methodology used in this rating was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
May 2013.

Moody's modeled the transaction using the Binomial Expansion
Technique, as described in Section 2.3.2.1 of the "Moody's Global
Approach to Rating Collateralized Loan Obligations" rating
methodology published in May 2013.

Under this methodology, Moody's used its Binomial Expansion
Technique, whereby the pool is represented by independent
identical assets, the number of which is being determined by the
diversity score of the portfolio. The default and recovery
properties of the collateral pool are incorporated in a cash flow
model where the default probabilities are subject to stresses as
a function of the target rating of each CLO liability being
reviewed. The default probability range is derived from the
credit quality of the collateral pool, and Moody's expectation of
the remaining life of the collateral pool. The average recovery
rate to be realized on future defaults is based primarily on the
seniority of the assets in the collateral pool.

The cash flow model used for this transaction is Moody's EMEA
Cash-Flow model.

This model was used to represent the cash flows and determine the
loss for each tranche. The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders. Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario; and (ii) the loss derived from the cash flow
model in each default scenario for each tranche. Therefore,
Moody's analysis encompasses the assessment of stressed
scenarios.

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

On March 11, 2013, Moody's released a special comment which
describes how sovereign credit deterioration impacts structured
finance transactions and the rationale for introducing two new
parameters into its general analysis of such transactions. In the
coming months, Moody's will update its methodologies relating to
multi-country portfolios including the one for CLOs as well as
for other types of Collateralized Debt Obligations (CDO), Asset-
Backed Commercial Paper (ABCP) and Commercial Mortgage-Backed
Securities (CMBS). Once updated methodologies are implemented,
the rating[s] of the notes affected by these actions may be
negatively impacted.



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


CASSA DI RISPARMIO: Moody's Lowers Deposit Ratings to 'Caa1'
------------------------------------------------------------
Moody's has downgraded Cassa di Risparmio di Cesena's long-term
deposit ratings to Caa1 from Ba3, and lowered the bank's
standalone credit assessment (BCA) to caa1. All ratings were
maintained on review for downgrade.

At the same time, the rating agency said that it will withdraw
all the bank's ratings because it believes it has insufficient or
otherwise inadequate information to maintain the rating.

At the time of withdrawal, CariCesena's ratings are as follows:

- Long-term deposit and senior unsecured ratings of Caa1;
   downgraded from Ba3

- Senior subordinate rating of Caa2; downgraded from B1

- Short-term local and foreign currency deposit rating of Not-
   Prime; (unchanged)

- Standalone baseline credit assessment (BCA) of caa1; lowered
   from ba3

- Senior unsecured MTN rating of (P)Caa1; downgraded from (P)Ba3

- Subordinate MTN and Tier III debt MTN rating of (P)Caa2;
   downgraded from (P)B1

- Junior subordinate MTN rating of (P)Caa3; downgraded from
(P)B2

Rationale For The Downgrade

Moody's says that the downgrade of the deposit rating is driven
by the downgrade of the standalone BCA; the downgrade of the BCA
takes into account the weakening operating environment in Italy,
as well as Moody's concerns about CariCesena's weak asset
quality, profitability, and capital adequacy. In Moody's view,
these weaknesses have significantly increased the likelihood that
the bank may require third-party support to ensure its longer-
term viability, and as a result the BCA is now positioned in the
caa category.

Considering the small size of the bank, and its limited
importance within the Italian banking system, Moody's considers
that the probability of systemic (government) support is low; as
a result there is no uplift from the standalone BCA of caa1.

The review on CariCesena's ratings initiated in January 2013;
then, in April 2013, Moody's revised its macro-economic forecasts
for Italy downwards. GDP is now expected to contract by around 2%
in 2013, and to stabilize in 2014; previous forecasts included
instead zero growth in 2013, with recovery towards the end of the
year.

CariCesena's asset quality is weak. Despite being concentrated in
a relatively wealthy region of Italy, the bank reported problem
loans of 14% (1) of gross loans, which compares with a system
aggregate of 10.6% for the same period (2). At the same time, the
rating agency notes that coverage of problem loans, although
improving, is still below system-average; in December 2012,
CariCesena's reported coverage of problem loans of 43%, which
compares with a system average of 49%. Considering Moody's macro-
economic forecasts, the rating agency said it expects further
asset quality deterioration in 2013 and 2014, which is likely to
further pressure profitability and capital levels, since the
bank's income generation looks insufficient to absorb such higher
losses

Regarding CariCesena's profitability, in 2012 the bank reported a
net loss of Eur14 million (3), compared to Eur13 million net
profit in 2011. According to the bank's financial statements, the
2012 results benefitted from extraordinary trading gains of Eur28
million, and most likely also from carry-trade on Italian
government bonds funded via LTRO with the European Central Bank.
According to Moody's , excluding these items, CariCesena would
have reported a substantially higher loss, which was largely
driven by the increased cost of credit. Loan loss charges for the
year were Eur91 million, equivalent to more than 200 basis points
(calculated over gross loans before deducting accumulated
provisions); this compares with an average of around 60 bps in
the previous four years. Given the rating agency's expectations
of the current low interest rate environment to persist, Moody's
expects core profitability to remain low. The rating agency notes
that such low pre-provision profitability may not be sufficient
to withstand the pressures on asset quality previously discussed,
and that further losses could be reported by CariCesena.

In the context of weak and deteriorating asset quality and weak
profitability, Moody's notes that CariCesena's capital is low. In
December 2012, CariCesena reported a Tier 1 ratio of 7.6%, which
compares to a significantly higher system average of 11.1% (4) as
at the same date. Moody's said that it considers CariCesena's
capital as insufficient to withstand the challenges on asset
quality, also taking into consideration the bank's limited
internal capital generation. According to Moody's scenario
analysis, CariCesena would not be able to remain adequately
capitalized above minimum regulatory in a stressed scenario. In
combination, these factors - high cost of credit, low
profitability and low capital levels - underpin the caa1
standalone BCA.

All ratings remain on review for downgrade, reflecting possible
downside risks that may have continued to emerge since 2012 year
end, as well as Moody's reviewed GDP forecasts.

(1) Source: Bank of Italy's Financial Stability Report, published
    in April 2013

(2) Unless otherwise noted, data in this report are sources from
    company's reports of Moody's Banking Financial Metrics

(3) Problem loans include: non-performing loans (sofferenze),
    watchlist (incagli - including only an estimate of those over
    90 days overdue), restructured (ristrutturati) and past due
    loans (scaduti)

(4) Source: Bank of Italy's Annual Report, published in May 2013

Withdrawal of All Ratings

Moody's will withdraw the rating because it believes it has
insufficient or otherwise inadequate information to maintain the
ratings of Cari Cesena.

Moody's will withdraw the rating of unsecured instruments with a
total face value of Eur277; for a full list of withdrawn debt.

The principal methodology used in these ratings was Moody's
Global Banks Methodology published in May 2013.



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


INTERXION HOLDING: Moody's Rates EUR325MM Senior Notes 'B2'
-----------------------------------------------------------
Moody's Investors Service has assigned a definitive B2 rating to
Interxion Holding N.V.'s EUR325 million 6% senior guaranteed and
secured notes due 2020 and a loss given default assessment of
LGD4 (63%). The definitive rating is in line with the provisional
rating assigned on June 18, 2013. All other ratings and positive
outlook on the ratings remain unchanged.

Ratings Rationale:

The definitive B2 rating assigned to Interxion's EUR325 million
guaranteed senior secured 2020 notes issuance is one notch below
the company's CFR and reflects their contractual subordination
under the terms of an inter-creditor agreement to the EUR100
million super senior guaranteed and secured revolving credit
facility (RCF) that replaces the existing EUR60 million RCF. The
company reports that as of March 31, 2013, the notes' guarantors
represented 87% of the company's reported consolidated adjusted
EBITDA and 75% of consolidated net asset value.

Interxion's B1 CFR is supported by (1) the company's leading
position in Europe as a provider of collocation data center
services, providing connectivity with reduced response times to
businesses that work with each other; (2) the favorable medium-
term demand/supply dynamics of the data center industry; and (3)
the stability of Interxion's profitability and cash flows given
the limited customer churn.

However, the CFR is constrained by (1) the modest size and scope
of the company's operations relative to its globally rated peers;
(2) the risk of oversupply in the industry; (3) the risks
relating to the returns on the company's developments and its
ability to increase utilization rates; and (4) the negative free
cash flow that is generated by Interxion as it pursues those
development opportunities.

Outlook

The positive outlook on the ratings is supported by a
strengthening of Interxion's positioning within its B1 rating
category. In Moody's view, the company has demonstrated prudent
financial policy and disciplined business practices, whereby
growth capital expenditure is focused on demand-led expansion.

The positive outlook is further supported by the rating agency's
view that the scale of Interxion's business is moving closer to
the inflection point where its organic growth strategy can be
self-financed, which will reflect in improved financial metrics.
In addition, Moody's expects the company will maintain sound
liquidity despite the continued high level of capital expenditure
it has made to realize its expansion plan.

What Could Change The Rating Up/Down

Positive pressure on the ratings could develop if demand and
supply dynamics continue to support pricing and high utilization
rates in the medium term, leading to an adjusted Debt/EBITDA
ratio towards 3.5x and positive free cash flow generation.
Conversely, negative pressure could emerge if the company is
unable to sustain levels of profitability and utilization rates
such that adjusted Debt/EBITDA were to trend above 4.5x.

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

Interxion Holding N.V. is a provider of carrier-neutral internet
data-center services and leases out collocation space in 34 data
centers located in 11 European countries, providing its customers
with power, cooling and a secure environment to house their
servers, network, storage and IT infrastructure. Interxion
reported last 12-months revenues for the period ending March 31,
2013 of EUR286 million and total assets of EUR823 million as at
March 31, 2013.


SCHAEFFLER HOLDING: S&P Assigns 'B+' Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B+'
long-term corporate credit rating to Netherlands-based Schaeffler
Holding Finance B.V., an entity at the holding level of Germany-
based automotive component and systems and industrial bearings
manufacturer Schaeffler AG.

S&P also assigned a 'B-' issue rating to Schaeffler Holding
Finance B.V.'s proposed EUR1,500 million notes due 2018, two
notches below the corporate credit rating.  The recovery rating
on these instruments is '6', indicating S&P's expectation of
negligible (0%-10%) recovery in the event of a payment default.

Schaeffler Holding Finance B.V. is a newly created entity
specifically created for the purpose of issuing the new notes; it
has no operating activity.  It is a subsidiary of Schaeffler
Verwaltungs GmbH, the company that holds the junior debt at
holding company level, meaning above Schaeffler AG.  S&P's
assessment of Schaeffler AG is based on a consolidated view of
the whole structure and incorporates the junior debt held at the
holding companies' level, in accordance with S&P's criteria.  As
such, Schaeffler Holding Finance B.V.'s corporate credit rating
is aligned with that on Schaeffler AG, even though Schaeffler AG
does not provide any corporate guarantee to Schaeffler Holding
Finance B.V.

The outlook is stable, reflecting that on Schaeffler AG.  For
further details, see "Summary: Schaeffler AG," published Feb. 28,
2013, on RatingsDirect.



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


BANCA COMERCIALA: Moody's Downgrades Deposit Ratings to 'Ba3'
-------------------------------------------------------------
Moody's Investors Service has downgraded the long-term deposit
ratings of Banca Comerciala Romana S.A. (BCR) in Romania to Ba3
from Ba1, following the lowering of the bank's baseline credit
assessment (BCA) to b3 from b1. Concurrently, Moody' affirmed
BCR's standalone bank financial strength rating (BFSR) of E+. The
BFSR and the deposit ratings carry a negative outlook.

Moody's says that the lowering of the BCA is driven by (1) the
further deterioration of the bank's already weak asset quality;
(2) Moody's expectation that the bank will face significant
medium-term challenges to return to sustainable profitability;
and (3) the bank's exposure to weak and uncertain collateral
values. Moody's says that BCR remains exposed to the possibility
of additional provisioning needs from the existing stock of non-
performing loans (NPLs), as well as the need for additional
capital, if the asset quality deterioration continues at a rate
similar to that observed in 2012.

At the same time, the expected support available from the parent
Erste Group Bank AG (A3, negative; BFSR D+/BCA baa3, negative)
and the Romanian government (Baa3 negative) underpins the three-
notch uplift for BCR's long-term deposit ratings from the b3 BCA.

Ratings Rationale:

Persisting Macroeconomic Pressure Continues To Affect Asset
Quality And Profitability

Weak economic growth continues to affect banking sector
performance with weak credit demand, lower revenues and asset-
quality pressures.

Given Romania's high dependence on external markets, particularly
in terms of exports and private sector capital inflows, the low
growth and financial uncertainty in euro area countries are
dragging on Romania's economic performance. Romania's GDP growth
decelerated to 0.7% in 2012, and Moody's expects GDP to grow by a
modest 1.5% in 2013, with private consumption expected to remain
subdued. Although economic growth should improve in the coming
years, this will likely remain well below the 2008 pre-crisis
levels (about 6% GDP growth per annum). Romania's income level is
far below the EU 27 average and the slower pace of growth will
delay the pace of income convergence.

Although at a slower pace than in 2012, Moody's expects that the
bank's asset-quality will continue to deteriorate as indicated by
the relative stabilization in the high household leverage and in
the weak construction industry. However, the bank's exposure to a
potential structural weakening of the local currency versus the
Euro remains a key credit risk to asset quality. The bank's NPL
stock will likely peak in 2013 and risk provisions will remain
high, but lower than the previous year's peak of 6.8% of gross
loans (unless otherwise noted, data in this press release are
from company data or Moody's Financial Metrics).

BCR's asset quality is very weak, and the ratio of problem loans
to gross loans deteriorated further to 28.2% at March 2013 from
26.7% at year-end 2012. While this ratio deteriorated, the bank
improved its coverage of NPLs to 58% as of March 2013 from 50.6%
at year-end 2011. Moody's says that the bank's exposure to weak
and uncertain collateral values in the country, combined with
lengthy recovery procedures, may continue to exert pressure on
coverage of NPLs, and on the bank's capacity to write-off NPLs.

The NPL trend reflects the bank's (1) large loan exposure to the
weak small and medium enterprises and micro companies sectors;
and (2) its significant level of foreign-currency lending, equal
to over 60% of the total loan portfolio, mainly Euro-denominated.
Poor asset quality led to a relatively large loss in 2012 and
will continue to exert pressure on profitability in 2013 and
2014.

Moody's believes that the bank will continue to face challenges
in the medium term in its efforts to return to sustainable
profitability, following the large loss of EUR276.9 million (or -
2.48% of average risk weighted assets) reported in 2012, while
implementing its turnaround strategy and working out its
significant non-performing loan portfolio.

Moody's notes that the bank's smaller loss in Q1 2013 of EUR2.8
million, significantly lower than Q1 last year, reflects the
large decrease in loan-loss provisions, which could prove not to
be sustainable, and the significant cost-cutting measures that
the bank is implementing.

Additional Considerations

BCR's capitalization slightly improved at year-end 2012 compared
with the same period in 2011, following an approximate 100 basis
points capital injection by the parent, resulting in an IFRS Tier
1 ratio of 13.6%. Against a number of Moody's stress scenarios,
which assess BCR's resilience against further asset-quality
deterioration, the rating agency notes that BCR's capital cushion
may come under pressure if the operating environment in Romania
deteriorates more than the rating agency would expect.

Deposit Ratings

Banca Commerciala Romana is the largest bank in Romania, with
market shares of assets of 19.3% as of March 2013. Erste Bank has
recently increased its stake in the bank to 93.6% and continues
to provide significant funding support to its subsidiary, mostly
to fund its sizeable foreign-currency portfolio. These
considerations drive Moody's assumptions of parental and system
support for the bank, resulting in a three-notch rating uplift
from the current b3 BCA.

Rationale For The Outlook

The outlook on all the bank's ratings is negative and reflects
the possibility that the pressures on asset quality,
profitability and capital, if sustained, could lead to Moody's
lowering BFSR to E, which could prompt a downgrade of the deposit
ratings.

What Could Move The Ratings Up/Down

Moody's says that further downward pressure on the BCA could be
exerted if the bank became consistently loss-making. This would
have a material impact on the sustainability of BCR's leading
franchise in Romania, or on the capitalization level which
Moody's currently considers as an important cushion. In addition,
deterioration in the operating conditions in Romania -- which may
continue to affect BCR's asset quality -- could prompt Moody's to
revise downward the bank's BCA and long-term deposit ratings.

In addition, a lowering of Erste Bank's ratings and/or Romania's
sovereign ratings could also exert downward pressure on BCR's
ratings.

Given the negative outlook, Moody's does not envisage any
immediate upward pressure on the bank's ratings. However, BCR's
ability to maintain its leading market position coupled with a
return to a sustainable profitability and significant asset-
quality improvements could result in upward pressure on the BCA
and deposit ratings. In addition, any rating upgrades will also
depend on improvements in the operating environment and more
generally in relation to the evolution of the parent's ratings
and the sovereign ratings.

The principal methodology used in this rating was Global Banks
published in May 2013.


GROUPE SOCIETE: Moody's Cuts Deposit Ratings to 'Ba2'
-----------------------------------------------------
Moody's Investors Service has downgraded the long and short-term
deposit ratings of BRD - Groupe Societe Generale (BRD) in Romania
to Ba2/Not-Prime from Baa3/Prime-3, following the lowering of the
bank's baseline credit assessment (BCA) to b2 from ba3.
Concurrently, Moody's lowered the standalone bank financial
strength rating (BFSR) to E+ from D-. The long-term deposit
ratings carry a negative outlook.

Moody's says that the lowering of the BCA is driven by (1) the
further deterioration of the bank's already weak asset quality;
(2) Moody's expectation that the bank will face significant
challenges to return to sustainable profitability in 2013; and
(3) the bank's exposure to weak and uncertain collateral values.
However, BRD remains adequately capitalized to withstand further
provisioning needs from the existing stock of non-performing
loans (NPLs), and Moody's does not foresee the need for
additional capital, if asset-quality deterioration continues to
progress in line with the average of the banking system.

At the same time, the expected support available from the parent
Societe Generale (A2, stable; BFSR C-/BCA baa2, stable) and the
Romanian government (Baa3 negative) underpins the three-notch
uplift for BRD's long-term deposit ratings from the b2 BCA.

Ratings Rationale:

Persisting Macroeconomic Pressure Continues To Affect Asset
Quality And Profitability

Weak economic growth continues to affect banking sector
performance with weak credit demand, lower revenues and asset-
quality pressures.

Given Romania's high dependence on external markets, particularly
in terms of exports and private sector capital inflows, the low
growth and financial uncertainty in euro area countries are
dragging on Romania's economic performance. Romania's GDP growth
decelerated to 0.7% in 2012, and Moody's expects GDP to grow by a
modest 1.5% in 2013, with private consumption expected to remain
subdued. Although economic growth should improve in the coming
years, this will likely remain well below the 2008 pre-crisis
levels (about 6% GDP growth per annum). Romania's income level is
far below the EU 27 average and the slower pace of growth will
delay the pace of income convergence.

Although at a slower pace than in 2012, Moody's expects that the
bank's asset-quality will continue to deteriorate as indicated by
the relative stabilization in the high household leverage and in
the weak construction industry. However, the bank's exposure to a
potential structural weakening of the local currency versus the
Euro remains a key credit risk to asset quality. The bank's NPL
stock will likely peak in 2013 and risk provisions will remain
high, but lower than the previous year's peak of 5.2% of gross
loans (unless otherwise noted, data in this press release are
from company data or Moody's Financial Metrics).

BRD's asset quality is weak, and the ratio of problem loans to
gross loans deteriorated to 22.2% at March 2013 from 21.3% at
year-end 2012. While this ratio deteriorated, the bank improved
its coverage of NPLs to 53.9% as of March 2013 from about 43% at
year-end 2011. Moody's says that the bank's exposure to weak and
uncertain collateral values in the country, combined with lengthy
recovery procedures, may continue to exert pressure on coverage
of NPLs, and on the bank's capacity to write-off NPLs.

The NPL trend reflects the bank's (1) large loan exposure to the
weak small and medium enterprises sector and to unsecured
consumers; and (2) its significant level of foreign-currency
lending, equal to about 58% of the total loan portfolio, mainly
Euro-denominated. Weak asset quality and lower net interest
income led to a loss in 2012 and will continue to exert pressure
on profitability in 2013 and 2014.

Moody's believes that the bank will continue to face challenges
in the medium term in its efforts to return to sustainable
profitability, following the limited loss of EUR74 million (or -
0.88% of average risk weighted assets) reported in 2012, while
implementing its new market and product strategy, reinforcing its
risk culture and working out its significant non-performing loan
portfolio.

Moody's notes the bank's small profit of EUR3 million in Q1 2013,
significantly lower than Q1 last year, mainly reflects the
significant decrease in the bank's net interest income, while
loan-loss provisions are maintained at a high level and costs are
decreasing.

Additional Considerations

BRD's capitalization remains adequate, with an IFRS capital
adequacy ratio of 16.7% at year-end 2012. Against a number of
Moody's stress scenarios, which assess BRD resilience against
further asset-quality deterioration, the rating agency notes that
BRD's existing capital cushion may come under limited pressure.

Deposit Ratings

BRD is the second-largest bank in Romania, with market shares of
around 15% in deposits and loans. Societe Generale holds about
60% stake in the bank and provides some funding to its
subsidiary, mostly to finance its sizeable foreign-currency
portfolio. These considerations, together with Moody's view of
Societe Generale's commitment to the Romanian market, underpin
Moody's assumptions of parental and systemic support for the
bank, which result in a three-notch rating uplift from the
current b2 BCA.

Rationale For The Outlook

The outlook on the bank's long-term deposit ratings is negative
and reflects the possibility that the pressures on asset quality,
profitability and capital, if sustained, could lead to the bank
becoming more weakly positioned in the E+ BFSR category,
resulting in a potential lowering of the deposit ratings.

What Could Move The Ratings Up/Down

Moody's says that further downward pressure on the BCA could be
exerted if the bank became consistently loss-making, which would
have a material impact on the sustainability of BRD's large
franchise in Romania, or on the capitalization level which
Moody's currently considers as an important cushion. In addition,
deterioration in the operating conditions in Romania -- which may
continue to affect BRD's asset quality -- could prompt Moody's to
revise downward the bank's BCA and long-term deposit ratings.

In addition, a lowering of Societe Generale's ratings and/or
Romania's sovereign ratings could also exert downward pressure on
BRD's ratings.

Given the negative outlook, Moody's does not envisage any
immediate upward pressure on the bank's ratings. However, BRD's
ability to maintain its large market position -- coupled with a
return to a sustainable profitability and significant asset-
quality improvements -- could result in upward pressure on the
BCA and deposit ratings. In addition, any rating upgrades will
also depend on improvements in the operating environment and
generally on the evolution of the parent's ratings and the
sovereign ratings.

The principal methodology used in this rating was Global Banks
published in May 2013.


LIBRARIILE ALEXANDRIA: Judiciary Administrator Appointed
--------------------------------------------------------
Romania Insider reports that bookshop chain Librariile
Alexandria, with stores in Suceava and nine other counties across
Romania, has filed for insolvency, and after court approval, the
insolvency specialist Casa de Insolventa Transilvania was named
judiciary administrator.

The bookshops chain, run by the firm Sedcomlibris and owned by
Romanian businessman Dan Alexandrescu, has as main creditors the
lenders Banca Transilvania and Banca Comerciala Romana as well as
the owners of the retail spaces where the bookshop runs its
units. End 2012, the company had a debt of EUR4.9 million, the
report discloses citing Finance Ministry data.

The report notes that the company's turnover in 2012 was of
EUR3.7 million, while its profit was of only EUR31,000. The
retailer employs 150 people, according to data from the Finance
Ministry, but the activity will not be affected by the insolvency
situation, Romania Insider reports.



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


RUSSIAN STANDARD: Fitch Assigns 'B' Subordinated Debt Rating
------------------------------------------------------------
Fitch Ratings has assigned Russian Standard Bank's (RSB;
B+/Stable/b+) "new style" subordinated debt issue with write-off
features a final long-term rating of 'B'/'RR5'. The bonds have a
coupon of 11.5% payable semi-annually, mature in January 2024 and
are callable in January 2019.

Key Rating Drivers

RSB's "new style" Tier 2 subordinated debt issue has been rated
one notch lower than the bank's Viability Rating (VR). This
includes (i) zero notches for additional non-performance risk
relative to the VR, as Fitch believes these instruments should
only absorb losses once a bank reaches, or is very close to, the
point of non-viability; and (ii) one notch for loss severity,
(one notch, rather than two, as these issues will not be deeply
subordinated, and will actually rank pari passu with "old style"
subordinated debt in case of a bankruptcy).

The issue will have coupon/principal write-down features, which
in accordance with recently adopted Russian legislation, will be
triggered if: (i) the bank's core Tier 1 capital adequacy ratio
decreases below 2%; or (ii) bankruptcy prevention measures are
introduced in respect to the bank by the Deposit Insurance
Agency. The latter is possible as soon as a bank breaches any of
its mandatory capital ratios or is in breach of certain other
liquidity and capital requirements.

For more details on Fitch's approach on rating subordinated debt
issues of Russian banks see "Implementation of New Capital Rules
in Russia: Moderately Positive, Unlikely to Lead to Rating
Changes" dated 19 April 2013 at www.fitchratings.com.

Rating Sensitivities

The issue's rating is linked to the bank's VR and would therefore
likely be upgraded or downgraded following similar action on the
VR.

Downward pressure on RSB's VR, and consequently the issue's
ratings, could stem from (i) a further material increase of
contingent risks or weakening of capitalization as a result of
the shareholder acquisition of CEDC; (ii) a significant liquidity
squeeze; or (iii) significant asset quality deterioration, driven
for example by a marked downturn of operating environment.

The gradual rebuilding of the bank's capitalization, along with
moderation of group risks could result in an upgrade of RSB's VR
and the issue ratings.


YAKUTSK FUEL: Fitch Affirms 'B-' Issuer Default Ratings
-------------------------------------------------------
Fitch Ratings has revised the Outlook on Russia's OJSC Yakutsk
Fuel and Energy Company (YATEC) Long-term foreign and local
currency Issuer Default Ratings (IDRs) and National Long-term
Rating to Stable from Positive and affirmed them at 'B-' and
'BB+(rus), respectively. Fitch has also affirmed the Short-term
foreign currency IDR at 'B'.

YATEC is a small natural gas and gas condensate producer and
refinery located in the Republic of Sakha (Yakutia) (BBB-
/Stable). YATEC's ratings reflect its dominant market position in
Yakutia and downstream integration, as well as high adjusted
leverage driven mainly by off-balance sheet obligations. We
revised the Outlook to Stable from Positive as YATEC failed to
reduce the amount of guarantees given to related parties compared
with end-2011 levels.

KEY RATING DRIVERS

Dominant Regional Gas Producer
YATEC is the largest natural gas producer in Yakutia with 2012
output of 1.7 billion cubic meters (bcm), accounting for 86% of
the republic's total. The regional gas distribution network is
isolated from OAO Gazprom's (BBB/Stable) gas pipelines, which
secures YATEC's market position but also limits its customer base
and production levels.

Small Size Caps Ratings
YATEC's production and reserves are small according to Fitch's
criteria, thus limiting its ratings to the 'B' category. In 2012,
the company's total hydrocarbon production reached 30.3 thousand
barrels of oil equivalent per day (mboepd), lower than that of
Afren plc (B+/Stable) with 43 mboepd or Alliance Oil Company Ltd
(B/Stable) with 54 mboepd. Since 2007, YATEC's total production
has increased by a CAGR of 4%, and we expect its output to remain
relatively stable over the medium term.

Outlook Revised to Stable
In 2012, YATEC continued to provide substantial financial and
performance guarantees to related parties and had other material
related party transactions. Thus, YATEC failed to substantially
reduce outstanding related party guarantees, which was a pre-
requisite for the Positive Outlook last year.

Gazprom Expansion Potentially Positive
"Gazprom's strategy to develop gas fields in Central Siberia
including Yakutia has no immediate ratings impact for YATEC, but
may be positive in the long run. Gazprom plans to develop and
launch Yakutia's Chayanda gas field by 2017 to supply Yakutia-
Khabarovsk-Vladivostok 'Power of Siberia' gas pipeline. Should
the regional gas network become connected to the Gazprom's
pipeline, YATEC might be able to significantly expand its gas
production. However, we do not include this scenario in our
rating case," Fitch says.

Low Upstream Price Risk
"We assess YATEC's upstream price risk as low compared with its
oil-producing peers. Russian government continues to liberalize
domestic gas markets by gradually increasing gas prices to
achieve export netback parity, and YATEC's regulated gas tariffs
follow this trend. From 1 July 2013, YATEC's gas tariff increased
by 9% to RUB1,758 per thousand cubic meters, and we expect it to
increase at least in line with inflation over the medium term,"
Fitch says.

Downstream Benefits EBITDA
YATEC's profile benefits from its downstream integration, which
diversifies its customer base and geography of sales, and adds
about one-third of its EBITDA. "We expect downstream profits to
increase on the back of the company's upgrade of its refining
facilities," Fitch states.

High Adjusted Leverage
"At end-2012, YATEC's funds from operations (FFO) gross adjusted
leverage including off-balance sheet guarantees reached 8x.
Although in H113 YATEC called off some related party guarantees,
we expect FFO gross adjusted leverage to stay at or above 5x at
least until 2016. We view high leverage as a significant burden
for the company, which compares unfavorably with other Fitch-
rated oil and gas peers in the region on debt metrics. We
forecast that YATEC's unadjusted leverage (ie, without off-
balance sheet obligations) will fluctuate between 2x-3x in 2013-
2016, which is commensurate with mid- or high-'B' rating
category," Fitch states.

RATING SENSITIVITIES

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

-- No significant new financial and performance guarantees, with
   a subsequent reduction of FFO gross adjusted leverage to below
   4x on a sustained basis, as well as no material related party
   transactions would be positive for the ratings.

-- Successful downstream expansion and quality improvements
   resulting in a higher contribution to EBITDA and cash flows
   could also be positive for the ratings.

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

-- "We could take a negative rating action if YATEC continues to
   provide significant guarantees to related parties, leading to
   FFO gross adjusted leverage of above 6x on a sustained basis,"
   Fitch says.

-- YATEC's inability to refinance its RUB3bn bond in 2013 would
   trigger a negative rating action.

DEBT AND LIQUIDITY

Improving Liquidity, Maturity

At end-2012, YATEC's RUB4.1 billion balance-sheet debt was all
short term, including a RUB3 billion domestic bond with a put
option in 2013, compared with only RUB700 million in cash. The
company has since repaid all bank loans and intends to replace
the RUB3 billion bond with a long-term loan, which should improve
its liquidity position.



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


KOMBINAT ALUMINIJUMA: Montenegrin Court Agrees to Release CFO
-------------------------------------------------------------
PRIME reports that a Montenegrin court has released
Dmitry Potrubach, CFO of bankrupted Kombinat Aluminijuma
Podgorica, which is 29.3% owned by Russian billionaire Oleg
Deripaska's En+ Group, on the condition of not to leaving the
city.

Mr. Potrubach was released on EUR100,000 bail paid by En+ for a
period of investigation of 30 days, PRIME discloses.

En+ confirmed that there are no grounds for accusing
Mr. Potrubach of stealing electric power from the European power
system, adding that the law enforcement agencies are pressurizing
En+ as a major creditor and shareholder of KAP, PRIME relates.

Bankruptcy proceedings were initiated by the country's finance
ministry on June 14 due to KAP's EUR24.4 million debt to the
ministry, which occurred after the repayment of KAP's
EUR24.4 million debt to Deutsche Bank from Montenegro's budget
under state guarantees, PRIME recounts.

KAP's total debt amounts to EUR380 million, including EUR102
million owed to Russia's VTB and Hungary's OTP Bank, as well as
EUR61 million to a local electric power company and EUR91.6
million to En+, PRIME discloses.

Kombinat Aluminijuma Podgorica is an aluminium plant.  The
company is Montenegro's single biggest industrial employer.  It
is jointly owned by the state and the Central European Aluminium
Company of Russian billionaire Oleg Deripaska.



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


RIMSKE TERME: EUR28 Million in Claims Admitted in Receivership
--------------------------------------------------------------
sta.si reports a total of EUR36.4 million in claims have been
reported by 190 creditors as part of the receivership proceedings
in the Rimske terme spa, of which somewhat less than EUR28
million has been approved by the official receiver.



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


BANKINTER: S&P Affirms 'BB/B' Ratings; Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services said that it revised to stable
from negative the outlook on Spanish bank Bankinter S.A.  At the
same time, S&P affirmed its long- and short-term counterparty
credit ratings on Bankinter at 'BB/B'.

The outlook revision reflects S&P's belief that Bankinter's
improving capitalization and the potential benefits from the
ongoing transformation of its business model balance S&P's view
of the potential downside from the industry risk in Spain and the
weaknesses in the bank's funding profile.

"We believe that Bankinter's organic earnings and capital
generation will likely benefit from substantially lower credit
impairments in 2013 following the extraordinary charges in 2012.
In addition, we consider that the bank's increased focus on the
higher-margin corporate segment, its successful development of
private banking activities, and lower provisions could help to
significantly increase Bankinter's operating returns by 2014.  We
anticipate that our risk-adjusted capital (RAC) ratio for
Bankinter (5.0% at year-end 2012) could gradually rise over the
next 18 to 24 months.  However, we are not revising our capital
and earnings assessment on the bank upward to "moderate" from
"weak," as our criteria define the terms, because we still see
potential risks to the bank's profitability from the weak
economic environment in Spain," S&P said.

Despite S&P's weak assessment of Bankinter's capital position, it
continues to assess its risk position as "strong," reflecting its
sound asset quality performance compared with Spanish peers, only
partly offset by the shift toward slightly riskier corporate
exposure from the residential mortgage portfolio.

"In our view, Bankinter maintains a relatively high reliance on
funding from European Central Bank (ECB) long-term refinancing
operations (LTRO).  We continue to consider this a weakness in
the bank's financial profile.  However, as the LTRO maturity
approaches, we now incorporate it in our assessment of
Bankinter's liquidity position rather than its funding profile.
Therefore, we have lowered our assessment of the bank's liquidity
to "moderate" from "adequate."  We have also raised our funding
assessment on the bank to "average," reflecting our belief that
Bankinter remains primarily retail-funded and is progressively
rebalancing its financing structure and reducing its exposure to
wholesale funding.  We maintain one notch of uplift in our
ratings for short-term extraordinary support, reflecting our
belief that the ECB facility should give Bankinter time to
address these imbalances and achieve adequate funding and
liquidity.  These changes do not affect the ratings on Bankinter
or its stand-alone credit profile," S&P added.

S&P continues to assess Bankinter's business position as
"moderate," reflecting what it sees as a challenging ongoing
transition of its business model.  Bankinter is moving out of its
established position within the low-risk, low-margin residential
mortgage segment, for which the bank relied on ongoing access to
cheap wholesale funding.

S&P's outlook on Bankinter is stable.  This takes into account
the improving trend it sees in the bank's capital position and
its track record of successful strategic execution in the
currently challenging operating environment in Spain.  These
positive trends are counterbalanced by S&P's view of the
potential negative impact on Bankinter's creditworthiness from
the negative trend S&P sees for Spanish banking industry risk and
from Bankinter's funding imbalances.

S&P could raise the ratings if it considered that banking
industry risk were abating in Spain and S&P believed that
Bankinter was likely to maintain RAC capital levels comfortably
and sustainably above 5%.  In the same context of abating banking
industry risk in Spain, S&P could also raise the ratings if it
considered that Bankinter's transformation of its business model
had been successful.

S&P might consider a negative action if it anticipated increasing
risks in the operating environment for banks in Spain or if the
bank was unable to rebalance its funding profile.  Specifically,
if the bank maintained its current level of reliance on funding
from the ECB, S&P would remove the notch of extraordinary short-
term support it currently incorporates in the ratings.  This is
because S&P bases the notch of uplift on its view that the LTRO
facility is giving the bank time to reduce its dependence on
wholesale funding and reach a balanced funding profile without
central bank support.


BANKOA: Moody's Affirms 'Ba1' Deposit Ratings & Negative Outlook
----------------------------------------------------------------
Moody's Investors Service has affirmed Bankoa's deposit ratings
at Ba1/Not Prime, and its standalone bank financial strength
rating (BFSR) at D- (equivalent to a ba3 baseline credit
assessment or BCA). All ratings have a negative outlook.

The affirmation of the ratings reflects Bankoa's capacity to
maintain an adequate loss absorption capacity despite the weak
operating environment in Spain, driven by its ability to maintain
asset quality indicators that compare favorably with its domestic
rated peers and outperform the banking system average.

Ratings Rationale:

Standalone BFSR and BCA

The rating action has been driven by Bankoa's ability to maintain
an adequate loss absorption capacity, which compares favorably
with peers. The bank shows a solid asset quality which can be
observed either in terms of an absolute level (the bank's NPL
ratio -- at 4.0% at end-March 2013 -- compares very favorably
with the system average of 10.5%) or in terms of a more moderate
increasing trend (NPLs increased by 0.7% in 2012 compared to 2.6%
for the system, even after the significant transfer of
problematic assets at year-end 2012 by some Spanish banks to the
SAREB (i.e., Spain's so-called "bad bank")).

Moody's also notes Bankoa's strong ranking relative to the system
with respect to other asset quality indicators monitored by the
rating agency. Real estate assets acquired from troubled
borrowers amounted to less than 1% of the total loan book at
year-end 2012, compared with a system-average ratio that Moody's
estimates at almost 7% of total loans. Furthermore, the volume of
restructured loans not classified as non-performing amounted to a
low 3% of total loans at year-end 2012. The aggregation of
refinanced loans (that are not already captured in the NPL
ratio), the acquired real estate assets and NPLs together
increased the overall problem loan ratio to 7.7% at year-end
2012, compared to Moody's- estimated system average of close to
26%.

In this context, Moody's emphasizes that Bankoa's ability to
exhibit a stronger asset quality performance in relation to the
system has been a key consideration in the rating affirmation,
since it has a weaker than average coverage of its problem loans,
and its recurring earnings power is also modest. The bank's
coverage ratio (defined as loan loss reserves/non-performing
loans (NPLs) stood at 47% at end-March 2013 compared with a
system average of 70%.

Deposit Ratings

Bankoa's deposit ratings were affirmed at Ba1/Not Prime following
the affirmation of the bank's standalone BFSR. The deposit
ratings benefit from Moody's assessment of a high probability of
support from Groupe Credit Agricole, via Bankoa's parent company
Caisse Regional de Credit Agricole Pyrenees Gascogne (deposits
A2/Prime-1 stable) and Credit Agricole SA (deposits A2/Prime-1
stable BFSR D/BCA ba2 stable). This probability of parental
support results in a two-notch uplift from its standalone credit
assessment of D-/ba3.

Rationale For The Negative Outlook

The negative outlook that Moody's has assigned to Bankoa's BFSR
and the deposit ratings incorporates the challenges faced by the
bank. Those challenges include the continuing weak operating
environment in Spain, which is characterized by the recessionary
domestic economy and overall low growth expectations for the
remainder of 2013 and 2014, the ongoing real estate crisis, the
very high unemployment rate and the broader euro area sovereign
and banking crisis. These conditions will likely lead to further
asset-quality deterioration across the banking system.

What Could Change The Rating Up/Down

There is currently no visible upward pressure on the ratings
given the current negative outlook of Bankoa's rating.

Downward pressure on Bankoa's ratings could ultimately result
from (1) worse-than-expected deterioration in operating
conditions, i.e., a broader economic recession beyond Moody's
current GDP forecasts of a 1.4% contraction for 2013, and a GDP
growth forecast between 0% and 1% for 2014; (2) failure to
maintain its positive asset-quality indicators; or (3) any
weakening of the parent's ongoing liquidity support.

In addition, Bankoa's long-term deposit ratings could be
downgraded if the probability of parental support declines, or if
Caisse Regional de Credit Agricole Pyrenees Gascogne's or Credit
Agricole's ratings are downgraded.

The principal methodology used in this rating was Global Banks
published in May 2013.


CEL CELIS: Opens Insolvency Proceedings in Leon Court
-----------------------------------------------------
Andy Colthorpe at PV-Tech reports that Cel Celis has opened
insolvency proceedings at the commercial court of Leon, in
northern Spain, amid reports that the company is in EUR30 million
(US$39.3 million) of debt.

PV-Tech notes that the company cited as a major factor an
immediate cash flow issue resulting from the Castille Y Leon's
regional government failing to provide EUR5 million (US$6.5
million) in subsidies that were promised to the company in an
agreement between the two parties reached in 2010.

According to PV-Tech, Cel Celis director Victor Tejuca, as cited
by local newspaper Diario del Leon, said there was no financial
contingency plan to deal with the EUR5 million shortfall, but he
remained adamant that restructuring of the company would take
place, rather than closure of facilities or liquidation of the
company.

Mr. Tejuca also stated that the majority of the EUR30 million
figure that Cel Celis owed was guaranteed by long term partners
and investors, the majority of which would keep faith with the
company, PV-Tech relates.

The company has been placed in the hands of auditor Manuel
Gonzalez Garcia of Auditas, who was appointed insolvency manager
as proceedings began, PV-Tech discloses.

Cel Celis is a Spanish solar manufacturer.


LA SEDA: Court Appoints Mazars as Insolvency Administrator
----------------------------------------------------------
Plasteurope reports that the commercial court in Barcelona
overseeing the bankruptcy proceedings of La Seda and its 12
subsidiaries has appointed auditing and consulting firm Mazars
Financial Advisory as insolvency administrator.

The company filed a voluntary insolvency petition on June 17
after its restructuring and refinancing plans failed to reach
approval of 75% of shareholders, Plasteurope relates.

La Seda de Barcelona is a Spanish plastics bottle maker.  The
Catalonia-based company makes bottles in Europe, Turkey and North
Africa.


NCG BANCO: S&P Affirms 'BB-/B' Ratings; Outlook Negative
--------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its
'BB-/B' long- and short-term counterparty credit ratings on
Spain-based NCG Banco S.A.  The outlook is negative.

The affirmation follows the strengthening of the group's capital
base to bring it back into compliance with minimum regulatory
capital ratios.  The bank achieved this through a "burden-
sharing" exercise on its hybrid instruments, under which the
hybrid capital was bought back at a discount and, in most cases,
the proceeds were mandatorily invested into new shares issued by
NCG Banco.

S&P had already included this "burden-sharing" exercise in its
opinion of the group's creditworthiness, and therefore it has not
led to a ratings upgrade.  S&P reflected this by incorporating
into the rating two notches of uplift above the bank's stand-
alone credit profile (SACP) in the form of short-term government
support.  Now that this short-term support has materialized, S&P
has revised upward its view of the bank's capital position to
"moderate" from "very weak", as its criteria define these terms.
As a result, S&P has also revised upward the bank's SACP to 'b'
from 'ccc+'.

Following completion of the burden-sharing exercise, S&P expects
the bank to continue strengthening its capital, and forecast a
Standard & Poor's risk-adjusted capital (RAC) ratio of between
5.0%-5.5% by year-end 2014.  S&P expects the bank to achieve this
through aggressive deleveraging and asset disposals.  Conversely,
S&P forecasts that organic earnings generation will remain weak
in this year and next.

"In our view, NCG maintains a relatively high reliance on the
European Central Bank's (ECB) Long-Term Refinancing Operation
(LTRO), which we consider as a weakness in its financial profile.
As the maturity date of this facility approaches, we now consider
this borrowing as short term, rather than a medium-term
obligation.  We therefore reflect the bank's high dependence on
the ECB, which made up 20% of total funding at the end of 2012,
in our assessment of liquidity rather than funding, as we did
previously.  In this context, we have revised our assessment of
the bank's liquidity to "moderate" from "adequate".  In addition,
we have also raised our funding assessment to "average" from
"below average", reflecting our belief that NCG remains primarily
retail funded and is progressively rebalancing its funding
structure and reducing its exposure to wholesale funding.  We
also maintain one notch of uplift in our ratings for short-term
extraordinary support, reflecting our belief that the ECB
facility should give NCG time to address the imbalances and
achieve an adequate funding and liquidity position.  These
changes do not affect the ratings or the SACP on the bank," S&P
said.

"Our ratings on NCG Banco continue to benefit from an extra notch
of uplift for extraordinary government support in addition to the
notch that we include for the short-term support mentioned above.
This extra notch reflects the likelihood that NCG Banco would
receive further government support if needed, given its
"moderate" systemic importance within the Spanish financial
system and our view of Spain's "supportive" stance toward its
banking system," S&P added.

The negative outlook reflects S&P's view that it could lower the
ratings on NCG Banco if:

   -- S&P sees increased risks in the difficult operating
      environment in Spain;

   -- S&P lowers the long-term sovereign credit rating on Spain;
      as a result, S&P would no longer incorporate a notch of
      uplift above the bank's SACP for extraordinary government
      support;

   -- The bank's restructuring proves more difficult than
      expected or impairs its stability and franchise;

   -- The bank underperforms S&P's capital forecasts due to
      lower-than-expected deleveraging or weaker-than-expected
      performance; or

   -- Contrary to S&P's base case expectations, the bank fails to
      progressively reduce its reliance on ECB funding.

S&P currently views a revision of the outlook to stable as
unlikely in the near term.  However, it could occur if S&P sees
an improvement in the operating environment for banks in Spain,
if the bank is able to restructure its business while continuing
to improve its financial profile, and if S&P revises its outlook
on the long-term sovereign credit rating to stable.


* SPAIN: Renewable Energy Subsidy Cuts May Spur Bankruptcies
------------------------------------------------------------
Alex Morales at Bloomberg News reports that four industry lobby
groups said Spain's cuts to renewable energy subsidies will leave
many project developers facing bankruptcy.

Industry Minister Jose Manuel Soria's decision to curtail profits
for power generators by EUR2.7 billion (US$4.1 billion) this year
"will lead many installations to bankruptcy because they won't be
able to repay the credit that financed them," Bloomberg quotes
the Spanish Photovoltaic Union, or UNEF, as saying in a statement
on Wednesday.

The decision announced on July 12 calls for half of the savings
to come from renewable energy generators and cap the rate of
return for the industry at 7.5% before tax, Bloomberg discloses.
The lobby group said that adds to previous reductions that have
slashed state aid to renewables by as much as 40%, Bloomberg
notes.

Prime Minister Mariano Rajoy's government is seeking to eliminate
a EUR4.5 billion deficit forecast this year for the power
industry, Bloomberg says.

UNEF's statement was issued on behalf of the National Association
of Producers of Photovoltaic Energy, or ANPIER, Protermosolar,
the industry association for thermal solar companies and the
Association of Producers of Renewable Energy, Bloomberg notes.

The change "has serious implications for owners of renewable
power plants and we may see a significant number defaulting on
their loans," Shai Hill, an analyst at Macquarie Group Ltd. in
London, as cited by Bloomberg, said in an e-mail.



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


TURKLAND BANK: Fitch Affirms 'b+' Viability Rating
--------------------------------------------------
Fitch Ratings has placed Turkland Bank A.S.'s (Turkland) 'BBB-'
Long-term foreign and local currency Issuer Default Ratings
(IDRs), 'F3' Short-term foreign and local currency IDRs,
'AAA(tur)' National Long-term rating and '2' Support Rating on
Rating Watch Negative (RWN). The bank's Viability Rating (VR) has
been affirmed at 'b+'.

KEY RATING DRIVERS - IDRs, NATIONAL RATING AND SUPPORT RATING
The RWN follows Fitch's placement of Arab Bank PLC (A-) on RWN.

Turkland's IDRs, National Rating and Support Rating are driven by
potential support from Arab Bank. Currently, there is a three-
notch difference between the Long-term IDRs of Arab Bank and
Turkland. This reflects Turkland's ownership structure, in which
Arab Bank (28% stake) and its sister bank, Arab Bank
(Switzerland) Ltd (22%), control only a combined 50% of the
bank's capital, with Lebanese Bank Med SAL (not rated by Fitch)
holding the other 50%. In addition, Turkland is small in relation
to Arab Bank, and at present has a limited impact on the latter's
balance sheet and income statement. Positively, though, all
shareholders have continued to provide fresh capital to support
Turkland's growth; during 2013, a total of US$110 million will be
injected into the bank.

RATING SENSITIVITIES - IDRs, NATIONAL RATING AND SUPPORT RATING
The RWN on Turkland's ratings will be resolved following the
resolution of the RWN on Arab Bank. Turkland's ratings will be
driven by the ability of entities within the Arab Bank group to
provide support, if needed. Any indication of a material
reduction in Arab Bank's commitment to its subsidiary would also
impact Turkland's ratings, but this is not expected by Fitch at
present.

KEY RATING DRIVERS - VR
Turkland's VR reflects its generally satisfactory financial
metrics and reasonable management and governance, and the still
quite supportive operating environment. However, the VR also
reflects the bank's limited franchise, some uncertainty about the
long-term sustainability of its business model, and the potential
for some near-term deterioration in performance and asset
quality.

Turkland's above-sector-average loan growth and tight cost
control combined to boost profitability in 2012-Q113. However, it
is still difficult to identify recurrent trends, and results can
be affected by fluctuating impairment charges and one-off events.
Past results have been volatile and performance indicators still
lag those of its closest peers. Projected branch expansion could
boost volumes, supported by US$55 million of capital injected in
May 2013, which could lead to profitability becoming more stable.

Asset quality is acceptable, considering the bank's primary focus
on serving small and medium-sized companies, with an impaired
loans ratio of 3.2% at Q113. However, in Fitch's view asset
quality is likely to deteriorate moderately as loan portfolios
season following recent growth. Turkland is funded by stable
deposits and, compared to peers, its loans/deposits ratio, at
around 100%, is sound.

The Fitch core capital/weighted risks ratio hovers around 13%.
Similar ratios at peers vary considerably, ranging from a high
17% to a low 8%. Considering Turkland's risks, Fitch believes
capital is adequate and additional capital is being injected in
2013.

RATING SENSITIVITIES - VR
Turkland's VR could be upgraded if management is able to
strengthen the bank's franchise and grow prudently, while
maintaining sound key financial indicators. A significant
deterioration in asset quality could result in a downgrade of the
VR.


YAPI VE KREDI: Moody's Affirms Ba1 Subordinated Debt Ratings
------------------------------------------------------------
Moody's Investors Service has affirmed Yapi ve Kredi Bankasi AS's
Baa2/Prime-3 global local-currency (GLC) deposit ratings and its
Baa2 foreign-currency senior unsecured debt rating. Concurrently,
Moody's also affirmed Yapi Kredi's Ba1 foreign-currency
subordinated debt ratings and its Baa3/Prime-3 foreign-currency
deposit ratings.

The rating affirmation follows Moody's recent rating action on
Yapi Kredi's parent, UniCredit SpA (UniCredit; deposits Baa2
negative, standalone bank financial strength rating (BFSR) D+/
baseline credit assessment (BCA) baa3, negative).

Moody's affirms Yapi Kredi's GLC deposit ratings, foreign-
currency senior unsecured debt rating and foreign-currency
subordinated debt ratings with their negative outlook. The
outlook of the foreign-currency deposit rating remains stable.
All of its other ratings and their respective outlooks are
unaffected.

Ratings Rationale:

The affirmation of Yapi Kredi's GLC deposit ratings is triggered
by Moody's recent rating action on UniCredit. Although Moody's
lowered UniCredit's BCA by one notch to baa3, the rating agency
has affirmed Yapi Kredi's debt and deposit ratings, as its
shareholder support assumptions continue to result in one-notch
of parental uplift being incorporated in the assigned ratings.
UniCredit's standalone rating serves as a reference point from
which Moody's derives the rating uplift for Yapi Kredi's GLC
deposit ratings in consideration of parental support. Moody's
continues to assess a moderate probability of support from
UniCredit, which holds a 40.9% stake in Yapi Kredi.

Furthermore, Moody's assesses the probability of systemic support
for Yapi Kredi as very high, based on the bank's position in the
domestic banking system in Turkey. Under its Joint Default
Analysis (JDA) methodology, Moody's combined assessment results
in Yapi Kredi's Baa2 GLC deposit rating benefiting from two
notches of uplift from its ba1 BCA.

Yapi Kredi's foreign-currency senior unsecured debt rating is at
the same level as its GLC deposit rating, and it is not
constrained by the applicable country ceiling. The affirmation of
the GLC deposit rating prompted the affirmation of the bank's
foreign-currency senior unsecured debt rating.

Yapi Kredi's foreign-currency subordinated debt rating has been
affirmed due to Moody's unchanged parental support assumption. As
a result, one-notch of rating uplift continues to be incorporated
into Yapi Kredi's foreign-currency subordinated debt rating,
which is positioned one-notch below the bank's Adjusted BCA --
and incorporates no rating uplift from systemic (government)
support.

Yapi Kredi's foreign-currency deposit rating has been affirmed
and continues to be constrained by the applicable country ceiling
and follows the affirmation of the GLC deposit rating.

Rationale For The Outlook

The outlook on the affirmed local-currency deposit, foreign
currency senior and subordinated debt ratings is negative,
reflecting the negative outlook on the BFSRs of Yapi Kredi and
UniCredit. The stable outlook on Yapi Kredi's Baa3 foreign-
currency deposit rating benefits from Moody's assumption of very
high probability of systemic support to Yapi Kredi in case of
need and reflects the stable outlook on Turkey's government bond
rating.

What Could Move The Rating Up/Down

Currently, there is no upward pressure on the affirmed ratings,
reflected by the negative or stable outlook where applicable on
Yapi Kredi's ratings.

Downwards pressure would be exerted on the affirmed GLC deposit
and foreign-currency debt ratings in the event of (1) a weakening
in Yapi Kredi's intrinsic standalone financial strength; (2) any
adverse changes in the parental support assumptions or a
weakening of UniCredit's creditworthiness; and/or (3) any
weakening in Moody's systemic support assumptions for Yapi Kredi.

The principal methodology used in this rating was Global Banks
published in May 2013.



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


AGROTON: Sets Tough Restructuring Terms for Eurobond Investors
--------------------------------------------------------------
Cbonds reports that Agroton set tough restructuring terms for
investors in its US$50 million Eurobond.  Essentially, it is
almost uncured default, on the brink of bankruptcy, Cbonds notes.

In July 2011, the company placed a debut three-year US$50 million
Eurobond with a 12.5% coupon, Cbonds relates.

On July 17, Agroton proposed to the bondholders that its Eurobond
terms should be amended by postponing the payment of the interest
income by half a year (to January 14, 2014), prolonging the
maturity by 60 months (to January 14, 2019) and lowering the
interest rate by as much as 450 bp to 8%, Cbonds discloses.  In
addition, the company requested that investors approve softer
leverage covenants, Cbonds notes.

The restructuring offer followed the failure by the company to
make a regular US$3 million payment on July 14, Cbonds discloses.
The extremely tough restructuring terms may indicate that the
company operates in a pre-bankruptcy state, Cbonds says.   The
company's offer is far from market levels and, importantly,
provides no warranty against another (double) default, according
to Cbonds.  However, bondholders, probably, have no choice but to
accept it, Cbonds states.

Agroton is Ukraine's major agricultural producer.


AGROTON PUBLIC: Fitch Lowers Issuer Default Ratings to 'C'
----------------------------------------------------------
Fitch Ratings has downgraded Agroton Public Limited's Long-term
foreign and local currency Issuer Default Ratings (IDR) to 'C'
from 'CCC' and National Long-term rating to 'C(ukr)' from 'BB-
(ukr)'. The agency has also downgraded Agroton's senior unsecured
rating to 'C'/'RR4' in relation to its US$50 million Eurobond due
in July 2014. All ratings are removed from Rating Watch Negative
(RWN).

The downgrade reflects the company's announcement that it is
unable to make the payment of its US$3 million coupon due on
July 14, 2013 due to its inability to access its cash and that it
has asked bond-holders to consider a proposal to restructure the
terms of the US$50 million Eurobond.

The proposed terms of the restructuring include reducing the
coupon from the current 12.5% to 8.0% and extending its maturity
from July 2014 to January 2019. Given that the revised terms
would result in the imposition to bond-holders of a material
reduction in terms vis-a-vis the original contractual terms and
the restructuring is being conducted to avoid bankruptcy, Fitch
would consider it as a Distressed Debt Exchange (DDE).

The company's main bank account, where its cash is lodged, is
with Bank of Cyprus (RD/Viability Rating: f) which itself is
currently undergoing a restructuring. This is affecting Agroton's
liquidity position.

Additionally, the company reported that its operating performance
is likely to further deteriorate in 2013, driven by adverse
weather conditions in Lugansk region, which negatively affected
crop yields and a drop in the prices of its crops -- wheat and
sunflower.

Rating Sensitivities

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

-- Following the expiry of the 30 days grace period after the
   missed interest payment on July 14, lack of visibility over
   a debt restructuring would trigger a downgrade to 'D'

-- Agreement of a restructuring of the US$50 million bond at new
   terms that constitute, based on Fitch's methodology, a DDE,
   would result in a downgrade to RD.

Positive: Until Fitch has clarity on Agroton's ability to service
its debt and maintain a viable business performance, we do not
envisage any positive rating movements within the next few
months.



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


ASHTEAD GROUP: Moody's Raises CFR to 'Ba2'; Outlook Stable
----------------------------------------------------------
Moody's Investors Service upgraded to Ba2 from Ba3 the corporate
family rating (CFR) and to Ba2-PD from Ba3-PD the probability of
default (PDR) rating of Ashtead Group Plc. (Ashtead, or, the
company). Concurrently, Moody's has upgraded to B1 from B2 the
rating of the US$500 million senior secured Notes due 2022 issued
by Ashtead Capital, Inc. The rating outlook is stable.

The upgrade reflects the sustained strong improvement in
Ashtead's operating performance driven by both volume and yield
growth predominantly supported by stabilization in its US
markets. The rating action also recognizes the company's balance
sheet strength supported by solid fleet management and timely
investment helping drive profitability, in conjunction with its
revised publicly-stated financial policy.

Ratings Rationale:

The strong performance achieved by the company, driven by a
larger fleet, higher utilization levels and improving yields has
resulted in Moody's adjusted leverage measured at April 30, 2013
decreasing to 2.2x down from 2.5x a year earlier, while Moody's
adjusted EBIT to Interest has increased to 5.3x from 1.0x over
the same timeframe. The significant improvement in interest cover
has been further supported by the refinancing of the USD 550
million 9% Notes with the smaller US$500 million 6.5% Notes and
improved margins under the Asset-based Facility.

While maintaining the steady deleveraging profile, the company
has invested heavily in its rental fleet in order to renew and
expand its fleet in the US while maintaining its investment in
the UK to retain a broadly stable fleet profile. Whilst this
leads to negative free cash flow generation in the short term,
the fleet is better positioned with a lower average age and a
more competitive fleet particularly in the US.

Although signs of a cyclical recovery have only recently come to
take a more sustained form, Ashtead has performed strongly over
the last three years and has materially improved its financial
metrics. This has predominantly been a result of the strong
performance from its US operations, Sunbelt Rentals (Sunbelt).
Rental penetration remains below more established markets, and an
increase in penetration has been a strong contributor to growth
as more contractors see the benefits of rental and move away from
ownership.

Additionally, Ashtead has gained market share from smaller, local
players that have some difficulty in securing funding to remain
competitive.

Moody's expectations are for the US market to continue to
improve, however, there is concern that the current climate of
significant growth capital expenditure could lead to a glut of
standing equipment in the event of a pullback, impacting used
values and lowering utilization levels and profitability. The UK
market is expected to remain a challenging environment in the
short term.

The stable outlook reflects Moody's expectation that Ashtead's US
operations will maintain steady growth, supported by continued
market share gains and increasing rental penetration; while the
environment for its UK operations remains challenging. The
outlook also assumes that the company will maintain a relatively
conservative financial policy with no major debt-funded
acquisitions or fleet overspend leading to lower utilization.

The company operates in a cyclical business, however, Moody's
believes it to be well positioned as a result of its young fleet
relative to previous cycles, its strong balance sheet versus
peers, and its expectations for good cash flow relative to the
industry. Despite these positive trends, upwards ratings pressure
on the near term is very limited due to the cyclical nature of
the business, uncertainty surrounding the sustainability of
demand, and the market's overall competiveness.

Although not currently expected, a downturn in its US operations,
a decline in fleet utilization and yields could create negative
rating pressure. Additionally, Moody's adjusted leverage
increasing above 2.5x on a sustained basis could also lead to
negative pressure.

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

Ashtead is a UK-listed equipment rental company, with operations
in the US and UK. Total revenue and EBITDA as at April 30, 2013
on a last-12-months (LTM) Moody's adjusted basis were GBP1,362
million and GBP554 million respectively.


ENGINE SEARCH: High Court Winds Up Two Engine Repair Companies
--------------------------------------------------------------
Two companies connected to discredited car repair company Bray
Engineering Limited were wound up in the public interest by the
High Court on June 18, 2013, for misleading customers by giving
cheap initial quotes for car repairs, which were later highly
inflated.

The winding up follows an investigation by the Insolvency
Service.

Engine Search Limited and Embassy Executive Cars Ltd based in
Harmondsworth, South West London, also overstated the complexity
of the work they did, exaggerated their quotes and used
intimidating language when challenged by customers.

The investigation found that Engine Search was the latest in a
long line of connected companies that carried on the same
business of engine remanufacturing and repairs. Its immediate
predecessor, Bray Engineering Limited, had already been wound up
in the public interest in November 2011, along with another
connected company, MPH Engineering Limited.

Like its predecessors, the company traded dishonestly, claiming
to provide cheap, all-inclusive quotes for engine repairs and
offering to collect the customer's car at a 'discounted' recovery
price from anywhere in the UK.

Once a vehicle was at its premises the company would, in most
cases, substantially inflate its quote for repairs, often more
than doubling the initial quote given. If customers refused to
accept the inflated quote, the company would then charge for the
stripping down of an engine, rendering the customer's vehicle un-
roadworthy.

At the hearing, Embassy did not oppose the petition while Engine
Search had previously decided not to. The companies' sole
director, Roy Dart, also gave an undertaking to place a third
connected company, Reconditioned Engines Limited into members' or
creditors' voluntary liquidation within 56 days from 19 June
2013.

Commenting on the case, David Hill, a Case Supervisor with the
Insolvency Service, said:

"The winding-up of these companies sends a clear message that
using unscrupulous and threatening trading methods will not go
unpunished.

"The volume of the complaints against these companies, compounded
by threats of violence directed at customers, showed that the
companies had traded unethically and with complete disregard for
commercial probity in their treatment of customers."

The investigation found that the company's terms and conditions
were inherently unfair and biased against the rights of the
customer, and were contrary to the provisions in various consumer
protection regulations.

Customers also suffered appalling customer service, and in many
instances felt intimidated and threatened. Repairs were of a poor
standard, often necessitating remedial repairs at other garages,
or alternatively leading to cars being written off.

In a number of instances, customers found that relatively high
value parts from their engines and engine compartments had simply
gone missing or had been replaced by 'cannibalised' parts. In
other instances where a customer had paid for their engine to be
reconditioned, they found that the company had replaced the
original engine with an inferior one.

Engine Search Limited advertised its business through the website
www.reconditioned-engines.co.uk, along with a number of
associated websites, including www.mercedesengines.co.uk,
www.rangeroverengines.co.uk, www.saabengines.co.uk and
www.jaguarengines.co.uk.

The petition to wind up the companies was presented in the High
Court on June 26, 2012.


HVM: Former Worker Opens Up Store Called "HVM"
----------------------------------------------
entertainment.ie reports that Derryman Tony Cregan, who ran the
city's HMV store for more than ten years, recently opened up a
new store in the same city -- called 'HVM'.

All HMV stores across Ireland and the UK were shut down earlier
this year after the business went into receivership, but Cregan
maintains that his store was operating successfully throughout
this period, according to entertainment.ie.

The report notes that after securing 15,000 signatures on a
petition to save the shop Cregan realised that there was a
considerable gap in the market if HMV exits the area, so he
decided to set up his own replacement store -- HVM.

The report says that this didn't go down well with His Master's
Voice. The company is back trading in the UK and Ireland, thanks
to being saved by restructuring firm Hilco.

A letter from their company's legal team suggested that the HVM
name was causing confusion and that the "continued presence in
the market of your business operating under the name HVM has
caused and will continue to cause substantial damage to our
client's reputation and goodwill. "

The report says that Mr. Cregan's solution to the problem was
simple, yet a stroke of genius. "So we just turned the sign
upside down, now it's called WAH."


MARLIN INTERMEDIATE: Moody's Assigns '(P)B2' CFR; Outlook Stable
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2
Corporate Family rating (CFR) to Marlin Financial Intermediate II
Ltd., a company purchasing past due consumer debt.

Moody's has also assigned a (P)B2 rating to the proposed GBP150
million long term senior secured bond to be issued by Marlin
Intermediate Holdings plc. The outlook is stable on all ratings.
This is the first time that Moody's has rated Marlin.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Upon a conclusive
review of the final versions of all the documents and legal
opinions, Moody's will endeavor to assign definitive corporate
family and senior secured ratings. A definitive rating may differ
from a provisional rating. The provisional ratings and the stable
outlook assigned to Marlin assume a successful refinancing of the
company's current financing package, as well as the confirmation
that the final set of documentation does not differ from the
draft documentation.

These ratings are contingent upon Marlin's successful completion
of a proposed GBP150 million senior secured notes offering and
completing the planned recapitalization program, whereby it will
use the proceeds from the bond issuance to repay an existing
senior facility agreement and will partially repay shareholder
loan notes. Some of the remainder of these shareholder loan notes
will be converted into equity in Marlin Financial Intermediate II
Ltd, the top entity within the restricted group. Marlin will also
enter into a new super-senior six year GBP25 million revolving
credit facility, whose usage Moody's will monitor as this may
change the structural subordination for the senior secured notes.

Ratings Rationale:

Marlin operates in the UK consumer debt market as a purchaser of
consumer debt from the financial services industry. The company
acquires aged debt at a deep discount to the total outstanding
balance and uses in-house and outsourced collections and legal
teams and a multi-channel communications strategy (phone calls,
texts, emails etc.) to contact the debtors and start the process
of debt collection.

The CFR of (P)B2 positively reflects Marlin's market positioning,
historical profitability at the operating level, improving
operating cash flow, low levels of concentration risk in terms of
borrowers, as well as the firm's positioning relative to peers
operating in the UK market. At the same time the rating is
constrained by the modest level of tangible common equity, the
company's monoline business model, its concentrated debt maturity
profile, a certain, albeit still modest level of concentration
risk in terms of suppliers (i.e. debt originators in the
financial services industry) and model risk in terms of valuation
and pricing of its purchased debt portfolio (i.e. the risk of the
models over-estimating projected cash flow generation of a
portfolio of purchased debt).The rating also reflects the
projected increase in leverage as a result of the proposed
transaction, although it is expected to decline over the forecast
period.

The provisional rating also incorporates the improved level of
capital following the conversion of some of the shareholder loan
notes into common equity in Marlin Financial Intermediate II Ltd.
Moody's also noted the concentration in terms of the laddering of
debt maturities with the GBP25 million new revolving credit
facility maturing in 6 years --which will be fully undrawn at the
time of the bond issuance, but which would rank super-senior to
the bondover enforcement proceeds -- and the senior secured bond
in seven years. Given the seniority of the RCF, any significant
drawdown under this facility may increase the company's leverage
and weaken the position of the bondholders who would be
subordinated to the RCF, which may put downward rating pressure
on the bond ratings.

Marlin has displayed a good level of growth in its gross
collections over the past few years and its total operating cost-
to-gross collections ratio has improved although remains
generally higher than peers' given Marlin's litigation-focused
business model. While operating cash flow, prior to portfolio
acquisitions, has remained strong and growing over the past few
years, Moody's notes that the performance at the net income level
(both before and after tax) has been less stable, mainly due to
the high financing expenses related to the shareholder loans.
This factor however, may be somewhat mitigated by the senior
secured bond issuance and further improvements in profitability
projected for financial years 2013-2015 and onwards, with
projected growth in gross collections and lower relative funding
costs. As a result, interest coverage is expected to increase and
remain at a satisfactory level, in line with the B2 ratings.

The receivables that Marlin acquires are generally in arrears and
therefore are, in Moody's view, speculative in nature. In
addition to this, Moody's notes three key risks: (i) model risk
in relation to valuation and pricing of its purchased
receivables; (ii) concentration risk in terms of suppliers, and
(iii) risks arising from potential litigation actions or
regulatory events. Moody's considers that Marlin's management is
well aware of the key risks arising from its business model.
Furthermore, the level of granularity of the portfolio of
purchased receivables helps to mitigate the model risk to a
certain extent and Marlin's focus on litigation for collection
purposes has been historically successful.

The significant private equity ownership of the firm also brings
an element of uncertainty as regards the timing and method of
exit of the investment although Moody's expects Duke Street to
manage their exit without compromising the company's strategy or
financial positioning of the restricted group.

Marlin's refinancing package incorporates GBP150 million Senior
Secured Notes, which are guaranteed on a senior basis by Marlin
and all material subsidiaries of Marlin Financial Group (the
ultimate holding company of the group), as well as a GBP25
million Revolving Cash Facility (RCF), fully undrawn at issuance.
Both the Senior Secured Notes and the RCF are secured by a first
ranking security interest in substantially all the assets of the
issuer and the guarantors.

What Could Change The Rating Up / Down

Upward rating pressure could arise from a significant improvement
in profitability on a pre-tax basis and sustained improvement in
the leverage metrics (debt-to-adjusted EBITDA) to below 2.5x,
while maintaining other financial metrics and ratios at current
levels.

The rating could come under downward pressure due to (i)
significant deterioration in income from operations (after
interest expense) and cash flow from operations, stemming from
factors such as underperforming collections productivity,
underperforming portfolio acquisitions and lower than forecast
collections; or (ii) no improvement in capital position and
leverage within the restricted group or sustained decline in
operating performance, leading to a debt ratio which is higher
than 4.0 times adjusted EBITDA; or (iii) significant decline in
interest coverage, with an adjusted EBITDA-to-interest expense
ratio below 1.0x. As interest coverage is expected to improve
given the lower debt service cost of the new notes, remaining at
current levels would be seen as a negative rating factor.

The principal methodology used in these ratings was Finance
Company Global Rating Methodology published in March 2012.


PAPERINO'S RESTAURANT: Falls Into Administration
------------------------------------------------
Kristy Dorsey at scotsman.com reports that Glasgow restaurant
Paperino's @78 has closed with the loss of 21 full and part-time
jobs following an unsuccessful bid by its owners to sell the
business.

Administrators from French Duncan were called in by brothers
Stefano and Sandro Giovanazzi, who owned the Italian eatery
through their Sanstef holding company, according to scotsman.com.
The report relates that the move followed a hunt for potential
buyers run by the retail team of Christie + Co.

The report notes that the closure of the restaurant at 78 St
Vincent Street does not affect Paperino's West End.  The
Giovanazzi brothers also continue to run La Parmigiana, the
family's long-established restaurant in Glasgow's Great Western
Road, scotsman.com notes.

The report relates that Brian Milne, joint administrator of
Sanstef, said July 17 that it was too early to determine what
level of debt Paperino's @78 had accumulated.

The report says that Sanstef took over the business in 2009, re-
launching it as Paperino' @78.  The date marked the 75th
anniversary of Walt Disney's Donald Duck, from which the
restaurant derived its name, scotsman.com discloses.

scotsman.com discloses that it was previously owned by
millionaire bookmaker and businessman "Fearless" Freddie
Williams, who bought the original Paperino's in 2004.  It went
into liquidation following Williams' death in 2008, scotsman.com
notes.

Last year, scotsman.com adds that the Giovanazzis sold a third
Paperino's on Sauchiehall Street to Caf‚ India's Tony Hussain. It
now trades as Papa Tony's.


SCOTTISH COAL: Liquidators Escape Clean-Up Bill Responsibility
--------------------------------------------------------------
BBC News reports that liquidators of the Scottish Coal mines
operation have escaped responsibility for a GBP73 million clean-
up bill.

The decision by a senior judge has left a question mark over who
will pay, BBC notes.

The Court of Session in Edinburgh was told the final bill linked
to the Scottish Coal Company's (SSC) open cast mining sites would
make the sites too costly to maintain, BBC discloses.

Lord Hodge was told that to bring the areas into compliance with
planning conditions could cost GBP73 million, BBC relates.

Mining has stopped at the sites but pumping operations are
continuing, BBC says.  So too is work linked to public safety,
including fence maintenance and the carrying out of statutory
obligations to protect the environment, according to BBC.  These
costs alone are running at GBP478,000 each month, BBC notes.

Joint liquidators Blair C. Nimmo and Gerard A, Friar had gone to
court to seek legal guidance about their responsibilities, BBC
relates.  They revealed that parts of the SCC's operations,
including mines and future sales, could bring in between GBP9.7
million and GBP10.5 million, BBC discloses.  But it was stated
money which might otherwise go to creditors of the failed company
was being eaten up by the costs of maintaining sites still on
SCC's books, BBC notes.

At the present rate, the liquidators said no money would be left
in 20 months at the sites, including Broken Cross in South
Lanarkshire and House of Water in East Ayrshire, BBC relates.

As reported by the Troubled Company Reporter-Europe on May 13,
2013, BBC News related that liquidators for Scottish Coal named
Hargreaves Services as preferred bidder for some of its assets.
KPMG, as cited by BBC, said it had chosen County Durham-based
Hargreaves Services as the best way of resuming operations and
bringing mining jobs back to the coal fields.  Scottish Coal,
which operated six open cast mines across Scotland, folded in
April with the loss of 600 jobs, BBC recounted.

Scottish Coal is an open cast mining firm.


UK COAL: Miners Have Been Warned For a Cut in Pension Payouts
-------------------------------------------------------------
Chad News reports that miners from around Mansfield and Ashfield
have been warned that they face a 10 percent reduction in pension
pay-outs after UK Coal went into administration following a pit
fire.

The company, which runs Thoresby Colliery in Edwinstowe, went
into administration earlier this month following a massive fire
at its most profitable pit, Daw Mill Colliery in Warwickshire in
February, according to Chad News.

The report notes that the Union of Democratic Mineworkers (UDM)
has warned that those being laid-off from Daw Mill could lose up
to GBP22,000 in redundancy, while staff from across the company
face losing 10 per cent from their pensions.

The report relates that around 120 workers have now been
transferred to Thoresby and other deep pits, but 350 employees
have been laid off from Daw Mill following the blaze.

The report says that as the company is currently in
administration, those losing their jobs will only receive
statutory redundancy payouts, the UDM said.

A union spokesman said that officials had met with the
administrator to discuss the future of UK Coal and its staff but
confirmed that many workers would be out of pocket, Chad News
discloses.

The report notes that a fund has now been set up to protect
miners' pensions at all the companies collieries, including deep
mines at Thoresby, Harworth Colliery, near Doncaster, and
Kellingley, in Yorkshire.

Thoresby Colliery dates back to 1925 with reserves expected to
last until at least 2019.

The report relays that but the news has been criticised by
Bassetlaw MP John Mann, who has accused UK Coal of poor
commercial practices and called on them to sell off land reserves
to pay off the GBP500 million pension deficit.

The report notes that following the blaze, UK Coal Mine Holdings
Ltd, UK Coal Operations Ltd and Mining Services Ltd were placed
into administration.

The report relays that and a compromise was later reached with
major creditors and pension providers, with the remaining viable
mining operations being successfully restructured.

Chad News adds that there are currently no plans for job losses
at Thoresby Colliery.


* Scottish Quarry Firms to Sue Taxman to Halt Seizure of Assets
---------------------------------------------------------------
scotsman.com reports that a group of Scottish quarry firms are to
take a dispute with HM Revenue & Customs over unpaid taxes to the
courts last week in a bid to halt the seizure of millions of
pounds of assets.

scotsman.com relates that eight aggregates companies in Scotland
have been issued with summary warrants ordering them to meet the
taxman's claims for unpaid aggregates levies.

The warrants give the quarry operators -- who are questioning the
legality of the levies -- just 14 days to pay or risk assets
being seized and sold, the report relays.

According to the report, the operators are now seeking a judicial
review against the use of the summary warrants which they argue
is seeing them treated differently to quarry operators in
England, who are also disputing the legality of the levies.

A QC hired by a number of Scottish quarry operators made the
application at the Court of Session in Edinburgh on Tuesday, the
report notes.

"We think HMRC have acted against their own guidelines in issuing
these summary warrants as we are not being given the chance to
defend ourselves and are being treated differently to firms
outside Scotland. They just turn up with the warrant and say you
have to pay or we will sell your assets," the report quotes
Robert Durward, managing director of Cloburn Quarry in South
Lanarkshire, as saying.  Mr. Durward has himself now been issued
with a summary warrant, the report notes.

scotsman.com adds Mr. Durward said the English companies have not
had warrants served as they have effectively been suspended until
October when the wider case over the legality of the tax is due
to be heard.



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


* BOOK REVIEW: The Luckiest Guy in the World
--------------------------------------------
Author: Boone Pickens
Publisher: Beard Books
Paperback: US$34.95
Review by Gail Owens Hoelscher
Buy a copy for yourself and one for a colleague on-line at:
http://is.gd/98dVRC

"This is the story of a man who turned a $2,500 investment into
America's largest independent oil company in thirty years and
along the way discovered that something is terribly wrong with
corporate America. Mesa Petroleum is the company, and I'm the
man." Thus begins the autobiography of Boone Pickens, who
prefers to be referred to without his first initial, "T."

Mr. Pickens' autobiography was originally published in 1987, at
the end of the rollercoaster years when he was one of the most
famous (or infamous, depending on your point of view) and
mostfeared corporate raiders during a decade known for corporate
raiding. For the 2000 Beard Books edition, Pickens wrote an
additional five chapters about the subsequent, equally
tumultuous, 13 years, during which time he suffered corporate
raiders of his own, recapitalized, and retired, only to see his
beloved company merge with Pioneer. One of his few laments is
being remembered mainly for the high-profile years, rather than
for the company he built from virtually nothing.

Of the takeover attempts, he says:

"I saw undervalued assets in the public marketplace. My game
plan with Gul, Phillips, and Unocal wasn't to take on Big Oil.
Hell, that wasn't my role. My role was to make money for the
stockholders of Mesa. I just saw that Big Oil's management had
done a lousy job for their stockholders."

He would prefer to be known as a champion of the shareholder
rights movement, which prompted big corporations to become more
responsive to the needs and demands of their stockholders. He
founded the United Shareholders Association, a group that
successfully lobbied for changes in corporate governance. In a
memorable interview in the May/June 1986 Harvard Business
Review, Pickens said, "Cheif executives, who themselves own few
shares of their companies, have no more feeling for the average
stockholder than they do for baboons in Africa."

Boone Pickens was born in 1928 in Holdenville, Oklahoma. His
grandfather was Methodist missionary to the Indians there; his
father was a lawyer and small player in the oil business.
People in Holdenville worked hard and used such expressions as
"Root hog or die," meaning "Get in and compete or fail."

The family later moved to Amarillo, Texas, where Pickens went to
Texas A&M for one year, but graduated from Oklahoma State
University in 1951 with a degree in geology. He worked at
Phillips Petroleum for three years, and then, despite growing
family obligations, struck out on his own. His wife's uncle
told him, "Boone, you don't have a chance. You don't know
anything."

This book is a wonderful read. Pickens pulls no punches, and is
as hard on himself as anyone else. He talks about proxy fights,
Texas-Oklahoma football games, his three marriages, poker,
takeover strategies, and unfair duck hunting practices, all in
the same easy tone. You feel like he's sitting right there in
the room with you.

Pickens ends the introduction to this story with this:

"How I got from a little town in Eastern Oklahoma to the towers
of Wall Street is an exciting, unlikely, sometimes painful
story. And, if you're young and restless, I'm hoping you'll
make a journey similar to mine."

Root hog or die!


                            *********

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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