/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/130815.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, August 15, 2013, Vol. 14, No. 161 Headlines B E L G I U M * Moody's Notes Stable Performance of Belgian RMBS in June F I N L A N D NOKIA CORPORATION: Fitch Affirms LT IDR 'BB-'; Outlook Negative F R A N C E FCC PROUDREED: Fitch Cuts Rating on Class E Notes to 'B' G E R M A N Y SOLARWORLD AG: CEO Expects Business to Improve in Second Half I R E L A N D CO LONGFORD: In Receivership, Owners Squatting on the Premises I T A L Y CREDITO VALTELLINESE: Moody's Lowers Deposit Ratings to 'Ba3' L I T H U A N I A UKIO BANKAS: Got Claims Totaling Less Than LTL1.6 Billion UKIO BANKAS: Owner Allegedly Involved in Large-Scale Embezzlement N E T H E R L A N D S CELF LOAN: S&P Raises Rating on Class D Notes to 'BB+' FAB CBO 2002-1: Moody's Affirms 'Ca' Rating on Class B Notes HERBERT PARK: Fitch Rates EUR12MM Class E Notes 'B-(EXP)' R U S S I A * ALTAI REGION: Fitch Affirms 'BB+/B' Currency Ratings S E R B I A & M O N T E N E G R O JAT AIRWAYS: Etihad Gets Regulatory OK to Acquire 49% Stake S P A I N * Fitch: Restructured Loans Push Spanish Bank Provisions Higher S W E D E N * SWEDEN: More Free Schools at Risk of Bankruptcy U K R A I N E * UKRAINE: Biomass Companies at Risk of Bankruptcy U N I T E D K I N G D O M CO-OPERATIVE BANK: Parent Faces Legal Action Over Unpaid Bonuses ENPURE LTD: In Administration, Former Employees Seek Compensation RADAMANTIS PLC: S&P Withdraws 'D' Rating on Class G Notes X X X X X X X X * Euro Auto ABS Index Performance Shows Positive Trends in Q213 * Morrison & Foerster Issues Bankruptcy Group Mid-Year Update * Upcoming Meetings, Conferences and Seminars ********* ============= B E L G I U M ============= * Moody's Notes Stable Performance of Belgian RMBS in June ---------------------------------------------------------- The Belgian residential mortgage-backed securities (RMBS) market's performance remained stable in the 6 month period leading up to June 2013, according to the latest indices published by Moody's Investors Service. From December 2012 to June 2013, the 90+ day delinquency trend decreased to 0.6% from 0.7% of the outstanding portfolio. Cumulative defaults increased to 0.3% from 0.2%. Moody's annualized total redemption rate (TRR) trend increased to 9.7%, from 7.8% over the year. In the 6-month period through June 2013, Moody's has not rated any new transaction in the Belgian RMBS market. As of June 2013, the 16 Moody's-rated Belgian RMBS transactions had an outstanding pool balance of EUR63.2 billion, which constitutes a year-on-year decrease of 1.1%. ============= F I N L A N D ============= NOKIA CORPORATION: Fitch Affirms LT IDR 'BB-'; Outlook Negative --------------------------------------------------------------- Fitch Ratings has affirmed Nokia's Long-term Issuer Default Rating (IDR) and senior unsecured rating at 'BB-'. The Outlook on the Long-term IDR is Negative. Nokia's performance over the past 12 months has been better that Fitch's expectations. However, due to the remaining challenges and lack of visibility facing the handset business, a stabilization of the rating is still some time off. The group's outperformance has been particularly driven by Nokia Solutions and Networks (NSN), the networks JV, with NSN's more targeted focus on mobile equipment in developed markets helping to improve profitability. By contrast Devices & Services remains challenged, with the mobile phones business in particular continuing to suffer substantial revenue and market share erosion - and where low-end smartphones and a proliferation of locally based handset manufacturers, are likely to further undermine Nokia's former strengths in the segment. The Lumia smartphone portfolio is beginning to gain some traction -- albeit from a low base -- and again, against the backdrop of intense competition. The stabilization of this business, along with continued strong performance at NSN, will be key to the ratings being stabilized at the current level. Key Rating Drivers Performing Better Than Expected In H212 and H113, Nokia Corporation's Devices and Services division moved towards returning to a sustainable level of profitability and NSN continued its strong turnaround. These, together with significant working-capital inflows at NSN, have resulted in Nokia maintaining a net cash position higher than Fitch's base case. However, significant challenges remain. Lumia Yet to Firmly Establish Itself While sales of the Lumia range of products appear to be slowly gathering pace, it is yet to make substantial market share gains. If Fitch is to stabilize the rating at 'BB-', then Nokia must demonstrate that the Lumia products and the wider Windows Phone ecosystem are capable of continuing its recent market share gains and firmly establishing themselves in the marketplace. Difficult Industry Dynamics The global smartphone market remains dominated by two large players. The success of these two manufacturers has put pressure on the profitability of all other participants, leading to numerous profit warnings across the industry. Nokia and WP must continue its turnaround against a backdrop of numerous, large manufacturers vying for market share in a crowded environment. Mobile Phones Business Challenged Revenue in the Mobile Phones division declined year-on-year by 39% in Q213, following a decline of 31% in Q113 and a decline of 21% in 2012. Gross margin in the segment fell to 22% on an LTM basis in Q213, from a margin of 25% in LTM Q212 and a margin of 27% in LTM Q211. With the continued proliferation of cheap Android devices, conditions in this segment are likely to remain difficult and Fitch is concerned about Nokia's long term viability in the segment. NSN Success NSN's strategy of focusing on higher-margin projects and more profitable regions at the expense of a broader geographic scope appears to be paying off. Its underlying operating profit margin over the past 12 months was 10.9% compared with 0.5% in the 12 months to Q212 and 0.5% to Q211. While the strong working capital inflows at NSN are unlikely to continue, and operating margins are likely to fluctuate from quarter to quarter, the business does seem to be building a track record of generating cash on a consistent basis. Fitch notes the presence of approximately EUR1.1bn of the consolidated group's EUR5.4bn debt at the NSN level and that the majority of the group's cash flow is being generated by NSN. Given this substantial amount of debt, debt holders at the Nokia Corp level could be increasingly more structurally subordinated if further significant amounts of debt are raised at the NSN level. Purchase of NSN Positive The outlay of EUR1.7 billion on NSN (an initial EUR1.2 billion plus EUR500 million in one year) weakens the group's balance sheet at a time when the Devices and Services division's ability to generate sustainable positive cash flow remains a question. The purchase does however give Nokia 100% ownership of the division that generated all group profits over the past year. At present NSN's future looks more secure than that of the group's other divisions. Remains Net Cash At the end of Q213, Nokia had a net cash position of EUR4.1 billion with EUR2.9 billion pro-forma for the initial cash outlay for NSN. The majority of the group's cash restructuring charges have now been paid out, while the underlying cash flow performance in recent quarters has improved. This supports the 'BB-' rating. Rating Sensitivities Positive: Future developments that could lead to positive rating actions include: -- Evidence that the Devices and Services division can return to a sustainable level of low-single digit profitability Negative: Future developments that could lead to negative rating action include: -- If the company looks like it will not be able to maintain its net cash position, a negative rating action is envisaged. -- Failure to demonstrate continued growth in the sales of its Lumia devices and failure to continue moving towards a Devices and Services operating profit breakeven point. -- Any further substantial increases of debt at the NSN level may have a negative impact on the senior unsecured rating of Nokia Corporation. The rating actions are: Nokia Corporation Long-term IDR: affirmed at 'BB-', Outlook Negative Senior unsecured rating: affirmed at 'BB-' =========== F R A N C E =========== FCC PROUDREED: Fitch Cuts Rating on Class E Notes to 'B' -------------------------------------------------------- Fitch Ratings has downgraded FCC Proudreed Properties 2005's class B to E notes, as follows: EUR180.0m Class A (FR0010247577): affirmed at 'AAAsf'; Outlook Negative EUR56.8m Class B (FR0010247585): downgraded to 'Asf' from 'AAsf'; Outlook Negative EUR28.4m Class C (FR0010247593): downgraded to 'BBBsf' from 'Asf'; Outlook Negative EUR28.4m Class D (FR0010247601): downgraded to 'BBsf' from 'BBBsf'; Outlook Negative EUR28.4m Class E (FR0010247619): downgraded to 'Bsf' from 'BBsf'; Outlook Negative Key Rating Drivers The downgrades principally reflect the deteriorating performance of the France Paris loan, as well as the two loans' impending maturity in August 2014. While Fitch believes that sufficient equity remains for the sponsor to procure a successful refinancing, the recent decline in occupancy ratio in the France Paris loan, as well as Fitch's more conservative estimate of collateral value for both loans, exposes the transaction to increased risks at their maturity The transaction is dominated by the EUR238.5 million Paris France loan, representing approximately 75% of the transaction's outstanding balance, with the remaining 25% accounted for by the EUR83.4 million Proudreed France loan. The collateral is made up predominantly by secondary quality warehouse distribution and logistics centers. However, the bulk of the portfolios are located in desirable regions for the distribution business: the Ile de France, Rhone Alpes and Provence-Alpes-Cote d'Azur account for more than two thirds of the portfolio by market value. The portfolios were revalued in December 2012, showing minor changes (less than 1%) in value compared to their valuations 12 months earlier. The Paris France loan collateral was valued at EUR380.2 million, and the Proudreed France loan collateral at EUR146.7 million, reflecting loan-to-value (LTV) ratios of 65% and 57%, respectively. Fitch estimates a more conservative market value, which would result in an LTV in excess of 80%. The Paris France loan occupancy has fallen to 69% from 93%, and gross income has reduced by more than 10% since Fitch's last rating action in August 2012. While this underperformance reduces the loan's attractiveness to potential investors, Fitch believes that the credit characteristics of the loan remain desirable for lenders. Trades for these types of assets are likely to fare positively in comparison with the loan's current gross debt yield of around 11%. On the positive side, the Proudreed France loan's improving performance has continued, reflected by its collateral's increasing occupancy levels and reflected through higher debt yields compared with 12 months earlier. Fitch expects both loans to repay without loss. While failure to repay at maturity would indicate deteriorating refinancing opportunities, both loans are generating significantly more income than their prospective debt service obligations (even if interest rates were to rise significantly). As a result, a cash sweeping mechanism (which would ensue if the loans did not repay at their maturity) would also help deleverage the loans ahead of the notes' legal final maturity in 2017. Rating Sensitivities A failure by the borrower to evidence proactive discussions with respect to the refinancing of both loans prior to their maturity in August 2014 would likely lead to further negative rating action. ============= G E R M A N Y ============= SOLARWORLD AG: CEO Expects Business to Improve in Second Half ------------------------------------------------------------- Stefan Nicola at Bloomberg News reports that Solarworld AG Chief Executive Officer Frank Asbeck expects business to improve in the second half as last week's deal to restructure the company boosts customers' confidence. Bloomberg relates that Mr. Asbeck said yesterday in a letter to shareholders the agreement will see shareholders lose 95% of their holdings and bring in a EUR35 million (US$46 million) investment from Qatar Solar S.P.C. According to Bloomberg, he said that the restructuring will be completed by the end of this year or early next year. While the solar market remains challenging, the deal "sent out a positive signal," Bloomberg quotes Mr. Asbeck as saying. "I am confident that business will improve in the second half of the year compared to the phase of ongoing restructuring." SolarWorld AG is Germany's biggest solar-panel maker. The company is based in Bonn. ============= I R E L A N D ============= CO LONGFORD: In Receivership, Owners Squatting on the Premises -------------------------------------------------------------- RTE News reports that the High Court has heard the owners of a Co Longford pub, which has been in receivership since 2011, are squatting on the premises and refusing to leave. The High Court, however, has refused to make orders until Joseph and Mary Fallon from Newtowncashel in Co Longford have been notified of the case, according to RTE News. RTE News notes that receivers appointed over the couple's pub told the High Court on Monday, Aug. 12, the premises had been vacated earlier this year but had been "broken into". It is now occupied by Joseph Fallon and his son, who were "holed up" in the pub and were believed to be trading illegally from it. Receivers Kieran Wallace and Andrew O'Leary are seeking injunctions from the High Court for the surrender of the premises, RTE News discloses. The report relates that they also want the court to order the Fallons not to have any contact with prospective buyers. In a sworn statement submitted to the court, Mr. O'Leary said the pub went into receivership arising out of unpaid loans from ACC bank in 2006 and 2007, the report notes. The report discloses that the court was told the amount remaining on the loans totals EUR840,349. The pub was leased back to the owners for a time during the receivership, but in April, was surrendered to the receivers and a security company was appointed to inspect the property periodically, the report relays. The property, along with others, was put up for auction in July. That auction was cancelled due to "unpleasant scenes", according to the statement obtained by the news agency. The report notes that Mr. O'Leary said shortly before the auction the "nature and tone of the dealings between the parties changed fundamentally". Mr. O'Leary said these were an effort to "disrupt the receivership," the report discloses. RTE News relays Mr. O'Leary said there was an "extremely serious development" in the past week where the defendants "had forcibly entered the premises" and occupied it. A number of letters were sent to the defendants demanding they vacate the property, but these were not complied with, RTE News says. RTE News relates Mr. O'Leary said it was evidence the defendants did not have professional legal advice and were being influenced by "the concerted efforts of third parties who have no practical or financial interest in the outcome of the receivership process". Justice Nicholas Kearns said he would not make any orders until the Fallons had been notified of the case, RTE News adds. ========= I T A L Y ========= CREDITO VALTELLINESE: Moody's Lowers Deposit Ratings to 'Ba3' ------------------------------------------------------------- Moody's Investors Service has downgraded Credito Valtellinese (CreVal)'s deposit ratings to Ba3/Not-Prime from Baa3/Prime-3, and lowered the bank's standalone baseline credit assessment (BCA) to b1 from ba1. Moody's says that the downgrade of the deposit rating is driven by the lowering of the standalone BCA. The lowering of the BCA takes into account the sharp deterioration in CreVal's profitability and asset quality, in the context of low capital levels, and a recessionary environment in Italy. The outlook on the long-term deposit rating is negative, whilst the outlook is stable on the E+ standalone bank financial strength rating (BFSR). These actions conclude the review initiated on December 10, 2012. Ratings Rationale: - Sharp Profitability Deterioration Related To Substantial Increase In Loan-Loss Charges In 2012 and in H1 2013, CreVal's profitability deteriorated sharply, mainly due to a substantial increase in loan-loss charges; a portion of this increase in 2012 was due to extraordinary one-off provisioning following the Bank of Italy's inspection of the loan book of the largest Italian banks. However, at the same time, Moody's macroeconomic forecasts suggest that the level of loan-loss charges will remain substantial for the next one to two years. As a consequence, the rating agency expects CreVal's recurring net profitability to remain weak in the medium term. In 2012, the bank reported revenues of EUR842 million, down more than 5% from 2011; this decline was mainly driven by a 9% reduction of the bank's net interest income, or -EUR47 million. A 2.5% decline in operating costs, from EUR598 million to EUR583 million, was not sufficient to compensate for the decline of revenues. As a result, pre-provision profitability declined by 11% to EUR259 in 2012. Following the Bank of Italy inspection, and a deteriorating operating environment (-2.4% Italian GDP in 2012), CreVal reported loan-loss charges for 2012 of EUR354 million, more than doubled from 2011 (EUR167 million); these provisions were almost 1.4 times the pre-provision profit for the year, representing a cost of credit of 152 basis points (72bps in 2011). In 2013, deteriorating asset quality will likely continue to weigh on CreVal's profitability; despite EUR39 million gains on trading and on the sale of financial assets (up 146% from June 2012), a high cost of credit has contributed to a net profit of just EUR2.8 million for H1 2013, down 90% from EUR28.2 million for H1 2012. - Capital Is Low Considering The Weakened Profitability In the context of a recessionary environment and the expectation of weak recurring profitability for the next two years, Moody's said that it considers CreVal's capital to be low. After repaying EUR200 million of Italian government bonds which qualified as Tier 1 capital, offset by some deleveraging, RWA optimization and other measures, in June 2013 the bank reported a Core Tier 1 ratio of 8%, in line with December 2012. The bank expects that this ratio to increase, mainly because of the adoption of the advanced model for credit risk under Basel II (subject to the Bank of Italy's approval), which CreVal estimates will provide a benefit of 140 basis points to its regulatory ratios by 2014. Moody's says that the combination of lower internal capital generation, low capital (current and prospective), and the deteriorating operating environment, increase the probability of extraordinary support and is consistent with a b1 standalone BCA. With regard to the bank's Ba3 long-term deposit rating, Moody's said that its assumptions include a moderate probability of systemic (government) support in case of need, which results in a one-notch uplift from the b1 BCA. Rationale For The Outlooks All ratings, with the exclusion of the standalone BFSR, carry a negative outlook, in line with most Italian banks and with the Italian sovereign. This reflects the possibility that downward pressure from the worsening operating environment could result in a lowering of the standalone BCA, which would in turn affect the bank's deposit ratings. What Could Move The Ratings Up/Down As indicated by the negative outlook on the debt and deposit ratings, an upgrade is unlikely in the short term. Upward pressure on the standalone BCA could derive from an increase in the Tier 1 ratio above 10%, together with stronger recurring profitability in 2013 and 2014 and a stabilization of asset quality. A raising of the standalone BCA could result in an upgrade of CreVal's long-term deposit rating. A lowering of the standalone BCA could be triggered by material losses in 2013, or by a material deterioration of NPLs. A lowering of the standalone BCA would result in a downgrade of CreVal's long-term deposit rating. List of Affected Ratings: -- Long-term deposit and senior unsecured ratings downgraded to Ba3 with negative outlook, from Baa3 on review for downgrade -- Short-term deposit rating downgraded to Not-Prime from Prime-3 on review for downgrade -- Subordinate rating downgraded to B2 with negative outlook from Ba2 on review for downgrade -- Senior unsecured MTN rating downgraded to (P)Ba3 from (P)Baa3 -- Subordinate MTN rating downgraded to (P)B2 from (P)Ba2 -- Junior subordinate MTN rating downgraded to (P)B3 from (P)Ba3 -- Other short-term rating downgraded to (P)Not-Prime from (P)Prime-3 -- Standalone bank financial strength rating downgraded to E+ with stable outlook from D+ on review for downgrade The principal methodology used in this rating was Global Banks published in May 2013. ================= L I T H U A N I A ================= UKIO BANKAS: Got Claims Totaling Less Than LTL1.6 Billion --------------------------------------------------------- Bryan Bradley at Bloomberg News reports that Ukio Bankas bankruptcy administrator Gintaras Adomonis said in a statement on ELTA news service claims submitted by the Aug. 7 deadline were less than LTL1.6 billion of liabilities on the bank's accounts. According to Bloomberg, Mr. Adomonis said the important stage of bankruptcy procedures has been completed. He said that of 11,490 creditors, 1,550 submitted claims, many unclaimed liabilities were of "negligible" size, Bloomberg relates. Mr. Adomonis, as cited by Bloomberg, said Lithuanian state deposit insurance fund accounts for 60% of claims. About Ukio Bankas Ukio Bankas AB is a Lithuania-based commercial bank, which is involved in the provision of banking, financial, investment, life insurance and leasing services to individuals and companies. It is Lithuania's sixth largest lender by assets. The Central Bank suspended Ukio Bankas' operations on Feb. 12, 2013, after it was established the lender had been involved in risky activities. A majority 64.9% of Ukio Bankas had been owned by Russian born- businessman Vladimir Romanov. UKIO BANKAS: Owner Allegedly Involved in Large-Scale Embezzlement ----------------------------------------------------------------- STV reports that Lithuanian prosecutors said Hearts owner Vladimir Romanov is suspected of involvement in a large-scale embezzlement at Ukio Bankas. Simonas Minkevicius, from the Lithuanian Prosecutor General's Office, told Baltic News Service an international arrest warrant was issued for Mr. Romanov last month, STV relates. Ukio Bankas, which Romanov was a majority shareholder of, was declared insolvent and had its banking license removed by financial authorities in Lithuania in February, STV recounts. According to STV, a pre-trial investigation into possible suspect dealings at the bank was also launched, after the central bank handed prosecutors details of suspicious transactions between 2005 and 2012. Lithuanian authorities want to question Romanov over the alleged embezzlement of LTL50 million, which is around GBP12 million, STV discloses. Mr. Minkevicius, as cited by STV, said: "Mr. Romanov is a suspect in the case, he is suspected of large-scale embezzlement of Ukio Bankas assets. The suspect is yet to be interviewed, therefore his position on the incriminated actions is not known." Vilma Mazone, from the General Prosecutor's Office of Lithuania, told STV that Mr. Romanov is facing up to seven years in jail on the embezzlement charge. According to STV, Ms. Mazone said: "V. Romanov has been recognized as a suspect and is suspected of having squandered high-value property belonging to the bank Ukio Bankas. "We cannot state yet the exact value of the squandered property, as its amount has not been established yet. Laws of the Republic of Lithuania provide that a person who has committed the above mentioned criminal offence shall be punished by imprisonment for a term of up to seven years. "As there were reasonable doubts regarding whereabouts of V. Romanov, on July 4th prosecutor passed the decision to announce a search for him; on the same day that decision was forwarded to the police for execution." A spokesman for Hearts of MidLothian Football Club administrators, BDO, said Romanov's future is unlikely to affect the administration process, STV notes. About Ukio Bankas Ukio Bankas AB is a Lithuania-based commercial bank, which is involved in the provision of banking, financial, investment, life insurance and leasing services to individuals and companies. It is Lithuania's sixth largest lender by assets. The Central Bank suspended Ukio Bankas' operations on Feb. 12, 2013, after it was established the lender had been involved in risky activities. A majority 64.9% of Ukio Bankas had been owned by Russian born- businessman Vladimir Romanov. ===================== N E T H E R L A N D S ===================== CELF LOAN: S&P Raises Rating on Class D Notes to 'BB+' ------------------------------------------------------ Standard & Poor's Ratings Services took various credit rating actions on all classes of CELF Loan Partners III PLC's notes. Specifically, S&P has: -- Raised its ratings on the class A-2, B-1, B-2, C, and D notes; -- Affirmed its ratings on the class A-1 and E notes; and -- Withdrawn its rating on the class T combination notes. The rating actions follows S&P's assessment of the transaction's performance, using data from the June 24, 2013 trustee report, and by applying its relevant criteria. Since S&P's previous review of this transaction on Feb. 14, 2012, it has observed an increase in the weighted-average spread earned on the collateral pool to 3.94% from 3.60%. The transaction's weighted-average life has reduced to 4.71 years from 5.16 years, over the same period. "We have also observed an increase in available credit enhancement for the class A-1, A-2, and E notes, due to the principal paydown of the senior notes and repayment of deferred interest on the class E notes. Interest proceeds were used to partially amortize the class A-1 notes after the par value tests of the most subordinated classes were breached on previous payment dates. The outstanding balance of the class A-1 notes is now 89.08% of its original balance. Additionally, the aggregate collateral balance that we consider to be performing had reduced to EUR445.07 million from EUR456.50 million on Feb. 14, 2012," S&P said. The par value tests for the class E notes do not currently comply with the required trigger under the transaction documents, but the par value tests for all other classes of notes comply with the required triggers. As of S&P's February 2012 review, all par value tests complied with the levels required under the transaction documents. Obligor concentration in the pool has been stable since S&P's previous review. The proportion of assets that S&P considers to be rated in the 'CCC' category ('CCC+', 'CCC', or 'CCC-') and assets that S&P considers to be defaulted (assets rated 'CC', 'C', 'SD' [selective default], and 'D') have decreased in notional and percentage terms since S&P's previous review. CELF Loan Partners III is in its reinvestment period, which will end in November 2013. S&P has subjected the capital structure to its cash flow analysis, based on its 2009 corporate cash flow CDO criteria, to determine the break-even default rate (BDR) at each rating level. S&P used the reported portfolio balance that it considered to be performing, the principal cash balance, the weighted-average spread, and the weighted-average recovery rates that S&P considered to be appropriate. "We incorporated various cash flow stress scenarios, using various default patterns, levels, and timings for each liability rating category, in conjunction with different interest rate stress scenarios. To help assess the collateral pool's credit risk, we used CDO Evaluator 6.0.1 to generate scenario default rates (SDRs) at each rating level. We then compared these SDRs with their respective BDRs," S&P added. Taking into account S&P's observations outlined above, it considers that the available credit enhancement for the class C and D notes now supports higher ratings than previously assigned. S&P has therefore raised to 'BBB+ (sf)' from 'BBB- (sf)' its rating on the class C notes and to 'BB+ (sf)' from 'BB (sf)' its rating on the class D notes. Although the results of S&P's cash flow analysis suggests higher ratings for the class E notes, it has affirmed its 'CCC+ (sf)' rating on this class of notes. S&P has done so based on the maximum rating achievable under the largest obligor test. The largest obligor test is a supplemental stress test that S&P introduced in its 2009 corporate cash flow CDO criteria. This test addresses event and model risk that might be present in the transaction and assesses whether a CDO tranche has sufficient credit enhancement (not including excess spread) to withstand specified combinations of underlying asset defaults based on the ratings on the underlying assets, with a flat recovery of 5%. Based on S&P's counterparty analysis, it has concluded that the transaction documents for the derivative counterparties -- Credit Suisse International (A/Stable/A-1) and JP Morgan Chase Bank N.A. (A+/Stable/A-1) -- do not fully comply with S&P's current counterparty criteria. As a result, S&P's current counterparty criteria constrain its maximum potential ratings in this transaction to one notch above its long-term issuer credit rating on the derivative counterparties. However, this does not apply if the available credit enhancement for the class of notes in question is sufficient to support higher ratings, after adjusting the pool balance in accordance with S&P's current counterparty criteria. S&P's ratings on the class B-1 and B-2 notes reflects its opinion of the available credit enhancement for these notes after it adjusted the aggregate pool balance in accordance with its current counterparty criteria, and conducted its credit and cash flow analysis. In S&P's opinion, the available credit enhancement for the class B-1 and B-2 notes now supports higher ratings than previously assigned. S&P has therefore raised to 'AA- (sf)' from 'A+ (sf)' its ratings on the class B-1 and B-2 notes. Under S&P's nonsovereign ratings criteria, it limits the credit given to assets in countries with a sovereign rating of more than six notches below the liabilities' rating to 10% of the total collateral. As the current exposure to assets in countries rated below 'A-' is 14.16%, S&P applied a 4.16% haircut (deduction) to the transaction's collateral under its 'AAA' rating scenarios. In S&P's February 2012 review, the sovereign exposure to assets in countries rated below 'BBB+' was 13.48%, and S&P therefore applied a 3.48% haircut to the transaction's collateral under its 'AA+' rating scenarios. "Our ratings on the class A-1 and A-2 notes reflect our opinion of the available credit enhancement for these notes after we adjusted the aggregate pool balance in accordance with our current counterparty criteria, conducted our credit and cash flow analysis, and applied our nonsovereign ratings criteria. As a result, we consider that the available credit enhancement for the class A-1 notes is commensurate with the currently assigned rating, while we consider the available credit enhancement for the class A-2 notes to be commensurate with a higher rating than previously assigned. We have therefore affirmed our 'AAA (sf)' rating on the class A-1 notes, and have raised to 'AA (sf)' from 'AA- (sf)' our rating on the class A-2 notes," S&P said. Since S&P's previous review of this transaction on Feb. 14, 2012, the class T combination notes have decoupled into their component parts in May 2012. Therefore, S&P has withdrawn its 'BB (sf)' rating on the class T combination notes. CELF Loan Partners III is a cash flow corporate loan collateralized loan obligation (CLO) transaction that securitizes loans to primarily speculative-grade corporate firms. The transaction closed in October 2006. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LIST Class Rating To From CELF Loan Partners III PLC EUR528.5 Million Secured Floating-Rate Notes Ratings Raised A-2 AA (sf) AA- (sf) B-1 AA- (sf) A+ (sf) B-2 AA- (sf) A+ (sf) C BBB+ (sf) BBB- (sf) D BB+ (sf) BB (sf) Ratings Affirmed A-1 AAA (sf) E CCC+ (sf) Rating Withdrawn T Combo NR BB (sf) Combo - Combination. NR - Not rated. FAB CBO 2002-1: Moody's Affirms 'Ca' Rating on Class B Notes ------------------------------------------------------------ Moody's Investors Service has taken action on the rating of the following class of notes issued by F.A.B. CBO 2002-1 B.V.: EUR250M (current amount outstanding EUR26.9M) Class A-1 Floating Rate Notes, Upgraded to A2 (sf); previously on Jan 12, 2010 Downgraded to Baa2 (sf) Moody's also affirmed the ratings of the following notes issued by F.A.B. CBO 2002-1 B.V.: EUR28M Class A-2 Floating Rate Notes, Affirmed Caa3 (sf); previously on Jan 12, 2010 Downgraded to Caa3 (sf) EUR16M Class B Floating Rate Notes, Affirmed Ca (sf); previously on Mar 11, 2009 Downgraded to Ca (sf) F.A.B. CBO 2002-1 B.V. is a structured finance collateralized debt obligation (SF CDOs) backed by a portfolio of European RMBS and ABS tranches. The reinvestment period ended in June 2007. The portfolio is managed by Gulf International Bank (UK) Limited. Ratings Rationale: The upgrade is driven by the significant amortization of the Class A-1 Notes. According to the trustee the outstanding amount decreased from approximately EUR47 million in June 2012 to approximately EUR27 million in June 2013. During the same period the overcollateralization of Class A-1 Notes increased from 123.15% to 126.79%. The level of upgrade was constrained by an increasingly non-granular asset pool where eight assets constitute approximately 58% of the pool and approximately 25% of the assets are domiciled in Italy, Portugal and Spain, countries that have been affected by the sovereign credit crisis. In the process of determining the final rating, Moody's took into account the results of sensitivity analyses: (1) Large Exposures Stress Test -- Moody's considered a model run where the ratings of the two highest exposures constituting approximately 19% of the pool were notched down by one to two notches. (2) Sovereign Credit Risk Sensitivity - Moody's considered a model run where assets domiciled in Italy, Portugal, and Spain, amounting to approximately 25% of the pool, were stressed by one notch more than the standard assumptions. The corresponding model outputs are consistent with the ratings assigned. Moody's notes that this transaction is subject to a high level of macroeconomic uncertainty, which could negatively impact the ratings of the notes, as evidenced by uncertainties of credit conditions in the general economy. SF CDO notes' performance may also be impacted either positively or negatively by 1) the liquidation agent behavior and 2) divergence in legal interpretation of CDO documentation by different transactional parties due to embedded ambiguities. Sources of additional performance uncertainties: (1) Recovery on defaulted assets: Market value fluctuations in defaulted assets reported by the trustee and those assumed to be defaulted by Moody's may create volatility in the deal's overcollateralization levels. Further, the timing of recoveries and the manager's decision to work out versus sell defaulted assets create additional uncertainties. Moody's analyzed defaulted recoveries assuming the lower of the market price and the recovery rate in order to account for potential volatility in market prices. (2) Portfolio Amortization: Pace of amortization could vary significantly subject to market conditions and this may have a significant impact on the notes' ratings. Assets domiciled in countries affected by the sovereign credit crisis may amortize over a longer time horizon than Moody's model assumptions. In addition well performing assets typically amortize earlier than expected, increasing the concentration of poor credit quality assets. Fast amortization would usually benefit the ratings of the senior notes. The principal methodology used in this rating was Moody's Approach to Rating SF CDOs published in May 2012. In rating this transaction, Moody's supplemented the model runs by using CDOROM to simulate the default and recovery scenario for each assets in the portfolio. Losses on the portfolio derived from those scenarios have then been applied as an input in the Moody's EMEA Cash-Flow model to determine the loss for each tranche. In each scenario, the corresponding loss for each class of notes is calculated given the incoming cash flows from the assets and the outgoing payments to third parties and noteholders. By repeating this process and averaging over the number of simulations, an estimate of the expected loss borne by the notes is derived. The Moody's CDOROM relies on a Monte Carlo simulation which takes the Moody's default probabilities as input. Each asset in the portfolio is modeled individually with a standard multi-factor model reflecting Moody's asset correlation assumptions. The correlation structure implemented in CDOROM is based on a Gaussian copula. As such, Moody's analysis encompasses the assessment of stressed scenarios. In addition to the quantitative factors that are explicitly modeled, qualitative factors are part of the rating committee considerations. These qualitative factors include the structural protections in each transaction, the recent deal performance in the current market environment, the legal environment, specific documentation features, the collateral manager's track record, and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, may influence the final rating decision. HERBERT PARK: Fitch Rates EUR12MM Class E Notes 'B-(EXP)' --------------------------------------------------------- Fitch Ratings has assigned Herbert Park B.V.'s notes expected ratings, as follows: EUR235.0m Class A-1: 'AAA(EXP)sf'; Outlook Stable EUR40.0m Class A-2: 'AA+ (EXP)sf'; Outlook Stable EUR37.0m Class B: 'A(EXP)sf'; Outlook Stable EUR21.0m Class C: 'BBB(EXP)sf'; Outlook Stable EUR23.5m Class D: 'BB(EXP)sf'; Outlook Stable EUR12.0m Class E: 'B-(EXP)sf'; Outlook Stable EUR44.7m subordinated notes: not rated Transaction Summary Herbert Park B.V. (the issuer) is an arbitrage cash flow CLO. Net proceeds from the issuance of the notes will be used to purchase a EUR400 million portfolio of European leveraged loans and bonds. The portfolio is managed by Blackstone/GSO Debt Funds Europe Limited. The reinvestment period is scheduled to end in 2017. The transaction documents may be amended subject to rating agency confirmation or noteholder approval. Where rating agency confirmation relates to risk factors, Fitch will analyze the proposed change and may provide a RAC if the change would not have a negative impact on the then current ratings. Such amendments may delay the repayment of the notes as long as Fitch's analysis confirms the expected repayment of principal at the legal final maturity. If in the agency's opinion the amendment is risk-neutral from the perspective of the rating Fitch may decline to comment. Noteholders should be aware that the structure considers the confirmation to be given in the case where Fitch declines to comment. Key Rating Drivers Four-Year Reinvestment Period The reinvestment period is longer compared with recent similar transactions. The maximum weighted average life of the transaction is eight years from closing, reducing to four years at the end of the reinvestment period. Portfolio Credit Quality The covenanted minimum weighted average (WA) Fitch rating factor is 34. Fitch therefore expects the average credit quality of obligors to be in the 'B'/'B-' range. Fitch has credit opinions on all the obligors in the indicative portfolio. Above-Average Recoveries At least 90% of the portfolio will comprise senior secured obligations. Recovery prospects for these assets are typically more favorable than for second-lien, unsecured, and mezzanine assets. The covenanted minimum WA Fitch recovery rate is 69.5%. Fitch has assigned recovery ratings to 95% of the indicative portfolio. Limited Basis/Reset Risk Basis and reset risk is naturally hedged for most of the portfolio through the floating rate, semi-annually paying liabilities. Fixed rate assets can account for no more than 10% of the portfolio and no more than 5% of the assets can pay interest less frequently than semi-annually. Limited FX Risk Asset swaps are used to mitigate any currency risk on non-euro- denominated assets. The transaction is allowed to invest up to 10% of the portfolio in non-euro-denominated assets, provided that suitable asset swaps can be entered into. Lower Obligor Concentration Unlike many recent CLOs, there are no exceptions to the maximum obligor concentration limit of 2.5% and a limit of 1.5% is included for non-senior obligors. This will lead to a lower portfolio correlation in our asset analysis. Rating Sensitivities A 25% increase in the expected obligor default probability would lead to a one- to two-notch downgrade for each class of notes. A 25% reduction in the expected recovery rates would lead to a one- notch downgrade for all rated notes. Key Rating Drivers and Rating Sensitivities are further described in the accompanying pre-sale report. =========== R U S S I A =========== * ALTAI REGION: Fitch Affirms 'BB+/B' Currency Ratings ------------------------------------------------------ Fitch Ratings has affirmed Russia's Altai Region's Long-term foreign and local currency ratings at 'BB+', National Long-term rating at 'AA(rus)' and Short-term foreign currency rating at 'B'. The Outlooks on the Long-term ratings are Stable. Key Rating Drivers The affirmation reflects the region's satisfactory budgetary performance, good liquidity and low debt; it also takes into account the modest scale of Altai's economy. The Stable Outlook reflects Fitch's expectation that conservative management practices would lead to continued low debt amid an unexpected lower than anticipated operating performance in the medium term. Fitch expects the region to record a satisfactory budgetary performance with an operating margin at about 7%-9% in 2013-2015. The region's operating balance decreased to 6.3% of operating revenue in 2012 (2011: 15.6%) stressed by escalated opex and lower subsidies in light of high cash reserves. Socially-related expenditure due to the start of the electoral cycle negatively affected Altai's budgetary performance in 2012. The region's deficit before debt variation widened to 6.9% of total revenue by end-2012 (2011: 0.3%). Altai remained net cash positive in 2012, despite partial depletion of its liquidity which decreased to RUB3.6 billion in 2012 from RUB8 billion in 2011. Average monthly cash stood at RUB6.2 billion in H113, demonstrating the region's ability to absorb temporary shocks. Fitch expects the region's debt management policy will remain conservative in the medium term. Altai's direct risk is likely to increase immaterially, up to 6% of current revenue in 2013 and up to about 7%-9% in 2014-2015. The region's direct risk was below three months of current balance and less than 2% of current revenue in 2012. Federal budget loans remained the sole debt instruments in 2012 with final maturities in 2015. The region's contingent liabilities are low, limited to a few outstanding guarantees and the low indebtedness of its broad public-sector companies. In Fitch's view, the administration's oversight of its public sector is adequate, thus limiting the region's exposure to contingent risk. The local administration expects economic growth averaging 6% yoy in 2013-2015. Altai's economy demonstrated stable growth in 2011-2012, increasing by about 3.9% yoy and 1.6% yoy, respectively. Investments into fixed assets and countercyclical sectors such as agriculture and trade stimulated expansion of the local economy. Agriculture's limited profitability, and its relying on barter exchanges bypassed by the national statistics, partly explains the region's low wealth indicators. Altai's economy remains modest in size and its wealth metrics historically lag behind the national median. In 2011, per capita gross regional product was 57% of the median for Russia's regions, while average salary in 2012 was 80% of the Russia's regions median. Rating Sensitivities A sound budget would be positive. The rating could be positively affected by improved budgetary performance with an operating margin rebounding towards 15% in the medium term along with maintenance of moderate debt and favorable debt coverage ratios. A budget decline would be negative. A downgrade could result from any significant further deterioration in the operating performance coupled with a radical increase of the region's total risk. ===================================== S E R B I A & M O N T E N E G R O ===================================== JAT AIRWAYS: Etihad Gets Regulatory OK to Acquire 49% Stake ----------------------------------------------------------- Shane McGinley at ArabianBusiness.com reports that Abu Dhabi's Etihad Airways has received final regulatory approval to acquire a 49% stake in Serbian airline JAT Airways and has unveiled a US$200 million plan to revitalize and rebrand the ailing state- owned carrier as Air Serbia. According to ArabianBusiness.com, as part of the "groundbreaking deal" announced at an official signing in the capital Belgrade on Aug. 1, Etihad has been awarded a five-year management contract, which president and CEO James Hogan described as the start of "exciting new opportunities for Serbia". As part of the redevelopment plan, the UAE national carrier will provide a US$40 million loan to Air Serbia, which will be converted into equity on January 1, 2014, ArabianBusiness.com discloses. Further down the line, Etihad has agreed to provide an additional $60m in the form of shareholder loans and other funding mechanisms, ArabianBusiness.com notes. As part of the partnership deal, Deputy Prime Minister Aleksandar Vucic announced the Belgrade government would match the funding provided by Etihad, giving the new airline a total cash injection of up to US$200 million, ArabianBusiness.com relates. As part of the overhaul of the loss-making legacy carrier, the workforce of 1,300 will be reduced, but Serbian Transportation Minister Milutin Mrkonjic told reporters in Belgrade in March he believed it could be back in the red this year due to the government agreeing to take over around US$220 million in liabilities on the carrier's balance sheet, ArabianBusiness.com discloses. "We believe JAT will be able to break even this year without the debt burden . . . The debt will be assumed by the state," ArabianBusiness.com quotes Mr. Hogan as saying. Jat Airways is the national flag carrier and largest airline of Serbia, and formerly Yugoslavia. ========= S P A I N ========= * Fitch: Restructured Loans Push Spanish Bank Provisions Higher --------------------------------------------------------------- Spanish banks have reported higher non-performing loans (NPLs) and loan impairment charges (LICs) ahead of a stricter classification of restructured loans to be adopted at end- September, Fitch Ratings says. "We expect that a substantial part of the provisioning efforts for restructured loans has been completed, so the tougher criteria should have less of an impact on bad debt charges and NPLs for the second half of 2013 for the majority of the six largest banks which reported recently. But asset quality and profitability remain the key risks for Spanish banks," Fitch says. "Underlying NPLs -- excluding the inflow from restructured loans and the impact of deleveraging and acquisitions -- showed some signs of stabilizing in Q213 for the six largest Spanish banks. Real estate development exposures continued to be the main driver for asset quality deterioration. These banks have kept bad debt coverage at reasonable levels and are trying to reduce real estate exposure, largely through their internal asset resolution units. There has been progress with a number of asset disposals and rentals during Q213, supporting the level of provisions held against these assets. But we expect asset quality pressures to continue, also spreading further into other loan classes. "LICs will therefore remain high in H213, although probably lower than in H113 and 2012, which were affected by the reclassification exercise and to a greater extent by the front- loading of real estate provisions in response to regulatory reforms, in part linked to the international bail-out. Excluding one-offs, the level of bad debt charges for Q213 were similar to levels reported in the first quarter. "The additional impairments from the restructured loan reclassifications have largely been offset by higher capital gains from the government bond portfolio following the recovery of spreads, as well as by profits from non-core asset sales. Cost-cutting from downsizing and integration of domestic operations also helped support profitability. But there is still substantial pressure on earnings from deleveraging and asset quality risks in a weak economy. "Nevertheless, we expect net interest margins to stabilize or improve in H213 for the largest banks as they will have adjusted to the rate cut from May. Banks with a greater SME-focus may find it easier to maintain loan spreads, whereas overall funding costs should fall further as high-yielding time deposits from a period of heightened competition in 2012 roll off. We also expect further cost efficiency benefits to materialize as the restructuring efforts filter through. These elements will be important to support returns in light of large loan impairments." =========== S W E D E N =========== * SWEDEN: More Free Schools at Risk of Bankruptcy ------------------------------------------------- Radio Sweden reports that the Swedish Schools Inspectorate wants more control over the finances of Sweden's publicly-funded, privately-managed "free schools" in order to protect pupils whose schools go bankrupt. Ann-Marie Begler, president of the Schools Inspectorate, told Swedish Radio News that competition is growing among private school companies while the number of pupils is decreasing. So, she said, there is a great risk that more free schools will go bankrupt in the near future, Radio Sweden relates. Several of Sweden's private school companies are also experiencing financial trouble, Radio Sweden discloses. At the same time, the number of pupils in Sweden has decreased by 20,000 in the past four years, Radio Sweden discloses. This year, the number of pupils starting secondary school was at a 30- year low, and the trend is expected to continue in the next two years, Radio Sweden notes. According to Radio Sweden, Ms. Begler predicted "Schools will close down and be phased out." ============= U K R A I N E ============= * UKRAINE: Biomass Companies at Risk of Bankruptcy -------------------------------------------------- Biofuels Digest reports that in Poland, the government dropped subsidies for companies co-firing with biomass pellets earlier in the year, which has led to a huge slide in demand nearing 50%. According to Biofuels Digest, Ukraine was a major exporter of those biomass pellets, and the significant, and quick, drop in demand has had a negative impact on those Ukrainian producers. Some are even tinkering around bankruptcy, Biofuels Digest discloses. For existing demand, prices continue to fall, only reaching up to EUR105 per ton compared to EUR125 per ton last year, Biofuels Digest notes. =========================== U N I T E D K I N G D O M =========================== CO-OPERATIVE BANK: Parent Faces Legal Action Over Unpaid Bonuses ---------------------------------------------------------------- Sharlene Goff at The Financial Times reports that a group of former employees of the Co-operative Group's insurance business are taking legal action against the mutual to claim unpaid bonuses worth a total of about GBP1 million. The 10 individuals worked for Co-operative Insurance Society, the life insurance and asset management division that was recently sold to Royal London as part of the mutual's efforts to strengthen its capital position, the FT discloses. They have launched formal grievance proceedings against the Co-op following its decision to axe bonuses for staff at its banking arm, the FT relates. The decision was announced earlier this year after the mutual posted a pre-tax loss of almost GBP600 million, largely driven by souring loans at the banking business, the FT discloses. The fund managers have argued that they were not responsible for the losses and should be rewarded for their performance, the FT recounts. According to the FT, their claim adds to the difficulties facing the Co-op, which is battling to fill a GBP1.5 billion capital hole identified by the regulator in June. The mutual is under fire from bondholders -- from hedge funds to pensioners -- who face heavy losses on their investments as part of a sweeping debt restructuring that is expected to raise GBP500 million, the FT notes. Co-op Bank -- part of the mutually owned food-to-funerals conglomerate Co-operative Group -- traces its history back to 1872. The bank gained prominence for specializing in ethical investment. It refuses to lend to companies that test their products on animals, and its headquarters in Manchester is powered by rapeseed oil grown on Co-operative Group farms. Founded in 1863, the Co-op Group has more than six million members, employs more than 100,000 people and has turnover of more than GBP13 billion. * * * As reported by the Troubled Company Reporter-Europe on May 13, 2013, Moody's Investors Service downgraded the deposit and senior debt ratings of Co-operative Bank plc to Ba3/Not Prime from A3/Prime 2, following its lowering of the bank's baseline credit assessment (BCA) to b1 from baa1. The equivalent standalone bank financial strength rating (BFSR) is now E+ from C- previously. ENPURE LTD: In Administration, Former Employees Seek Compensation ----------------------------------------------------------------- Droitwich Advertiser reports that more than 150 employees who lost their jobs when a former Kidderminster firm involved in the water industry went into administration, are seeking a total of at least GBP400,000 in compensation. Enpure Ltd moved from Kidderminster to Woodgate Valley Business Park, near Quinton, and had an annual turnover of GBP65 million at its peak, according to Droitwich Advertiser. However, the report relates that it faced "a challenging period in trading" last year and went into administration. More than 30 of the former employees who lost their jobs complained at Birmingham Employment Tribunal about a lack of adequate consultation about their impending job losses and sought protective awards, according to Droitwich Advertiser. The report discloses that under the Trade Union & Labour Relations Act employers are compelled to carry out full consultations with employees about impending job losses to give them time to find other jobs. Protective awards are penal in nature, rather than compensatory, and are designed to encourage employers to comply with their legal obligations, the report notes. The report says that the former Enpure employees sought protective awards the equivalent of eight weeks wages, with a limit of up to GBP450 a week. Droitwich Advertiser notes that the tribunal was told that the firm had tried to find a buyer without success. Tribunal judge Miss Sheila Warren warned the claimants: "You may not get all the money you seek," the report notes. The hearing had been listed for five days and Miss Warren said a decision would be made at a later date, the report adds. RADAMANTIS PLC: S&P Withdraws 'D' Rating on Class G Notes --------------------------------------------------------- Standard & Poor's Ratings Services withdrew all of its credit ratings in Radamantis (European Loan Conduit No. 24) PLC. S&P has withdrawn its ratings following its receipt of the July 2013 cash manager's report, which confirms that the class A to E notes fully redeemed and that the class G notes redeemed at a loss on the July 2013 interest payment date. Radamantis ELOC 24 was a 2006-vintage U.K. commercial mortgage- backed securities (CMBS) transaction that originally comprised four loans. The notes' legal final maturity date is in October 2015. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com Ratings List Radamantis (European Loan Conduit No. 24) PLC GBP493.525 Million Commercial Mortgage-Backed Floating-Rate Notes Class To From A NR A (Sf) B NR BBB+ (Sf) C NR BBB- (Sf) D NR BB+ (Sf) E NR B- (Sf) G NR D (sf) NR-Not rated. =============== X X X X X X X X =============== * Euro Auto ABS Index Performance Shows Positive Trends in Q213 --------------------------------------------------------------- Fitch Ratings says in its quarterly European Auto ABS Index report that the performance of its indices primarily displayed positive trends in Q213. The Fitch 30+ Delinquency Index and Fitch 60+ Delinquency Index decreased to 1.6% and 0.8% from 1.8% and 0.9%, respectively, during Q2 while the Fitch Annualised Loss index remained stable at 0.5%. Macroeconomic factors largely remained stable across the EU, while trends varied across countries. New car sales and used car prices continued to display decreasing trends in Q213 and manufacturers remained under pressure as a result. New auto ABS issuance across Europe in Q213 increased relative to Q113. However, volumes were down relative to Q212. * Morrison & Foerster Issues Bankruptcy Group Mid-Year Update ------------------------------------------------------------- Morrison & Foerster LLP's Business Restructuring & Insolvency Group continues to work on some of the largest and highest- profile bankruptcy matters as it is lead debtors counsel to Residential Capital and lead counsel to the Chapter 11 Trustee in the MF Global case. It also represents parties in the Ambac, Pinnacle, Eastman Kodak, Triad and PMI bankruptcy matters, among other assignments. The firm's hard work has earned it recognition from leading industry publications. MoFo's Business Restructuring & Insolvency Group was named Chambers USA Bankruptcy Firm of the Year for 2013 and Law360 Bankruptcy practice Group of the Year for 2013. The firm has produced its Summer Update that details the status of some of its assignments, both in the United States and in Europe, including its work representing Landsbanki hf., one of the three large banks in Iceland that collapsed in 2008 with combined liabilities of $65 billion. Following the recaps, MoFo provides brief analysis of some of the recent developments in insolvency law in the United Kingdom and the rest of Europe. The Summer Update can be found at http://is.gd/cXASiO Morrison & Foerster has deep experience on all sides of the bankruptcy process, including working with debtors, creditors' committees, secured and unsecured creditors, DIP lenders, purchasers and sellers of claims, and acquirers of distressed companies (or their assets). Its cases run the gamut of industries and type, including restructuring financial institutions, cross-border insolvencies, distressed real estate, creditor committee representations, insolvencies involving key intellectual property, and hedge fund failures. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *