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



* Moody's Notes Stable Performance of Belgian RMBS in June


NOKIA CORPORATION: Fitch Affirms LT IDR 'BB-'; Outlook Negative


FCC PROUDREED: Fitch Cuts Rating on Class E Notes to 'B'


SOLARWORLD AG: CEO Expects Business to Improve in Second Half


CO LONGFORD: In Receivership, Owners Squatting on the Premises


CREDITO VALTELLINESE: Moody's Lowers Deposit Ratings to 'Ba3'


UKIO BANKAS: Got Claims Totaling Less Than LTL1.6 Billion
UKIO BANKAS: Owner Allegedly Involved in Large-Scale Embezzlement


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)'


* 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


* Fitch: Restructured Loans Push Spanish Bank Provisions Higher


* SWEDEN: More Free Schools at Risk of Bankruptcy


* 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


* Euro Auto ABS Index Performance Shows Positive Trends in Q213
* Morrison & Foerster Issues Bankruptcy Group Mid-Year Update
* Upcoming Meetings, Conferences and Seminars



* 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%.


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

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-'


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

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


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.


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

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

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

Justice Nicholas Kearns said he would not make any orders until
the Fallons had been notified of the case, RTE News adds.


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

  -- Subordinate MTN rating downgraded to (P)B2 from (P)Ba2

  -- Junior subordinate MTN rating downgraded to (P)B3 from

  -- Other short-term rating downgraded to (P)Not-Prime from

  -- 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.


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.


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

   -- 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

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

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.


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:



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

(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

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

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

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.


* 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

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 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, 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,

Further down the line, Etihad has agreed to provide an additional
$60m in the form of shareholder loans and other funding
mechanisms, 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, 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,

"We believe JAT will be able to break even this year without the
debt burden . . .  The debt will be assumed by the state," quotes Mr. Hogan as saying.

Jat Airways is the national flag carrier and largest airline of
Serbia, and formerly Yugoslavia.


* 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."


* 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."


* 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

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

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

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


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:


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.


* 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

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
      Southwest Bankruptcy Conference
         Hyatt Regency Lake Tahoe, Incline Village, Nev.
            Contact:   1-703-739-0800;

Oct. 3-5, 2013
      TMA Annual Convention
         Marriott Wardman Park, Washington, D.C.

Nov. 1, 2013
      NCBJ/ABI Educational Program
         Atlanta Marriott Marquis, Atlanta, Ga.
            Contact:   1-703-739-0800;

Dec. 2, 2013
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact:   240-629-3300 or

Dec. 5-7, 2013
      Winter Leadership Conference
         Terranea Resort, Rancho Palos Verdes, Calif.
            Contact:   1-703-739-0800;


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

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  Go to 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
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Information contained herein is obtained from sources believed to
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or balance thereof are US$25 each.  For subscription information,
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