TCREUR_Public/130927.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, September 27, 2013, Vol. 14, No. 192

                            Headlines

G E R M A N Y

CONERGY AG: Kawa to Buy Sales & Service Units; 350 Jobs Secured
TAURUS CMBS: S&P Affirms 'CCC-' Rating on Class D Notes


G R E E C E

* GREECE: Attempts to Avoid International Bail-Out


H U N G A R Y

MFB HUNGARIAN: Fitch Rates Senior Unsecured Notes 'BB+(EXP)'


I R E L A N D

ANGLO IRISH: Liquidators Seek Protection from Probe
CARL SCARPA: Files Application for Examinership


L U X E M B O U R G

QUIRINUS PLC: S&P Lowers Rating on Class F Notes to 'CC'


N E T H E R L A N D S
GRESHAM CAPITAL: S&P Affirms 'B+' Rating on Class E Notes
OAD: Declared Bankruptcy; Some 7,000 People Stranded


P O R T U G A L

ESPIRITO SANTO: S&P Puts 'BB+' Rating on CreditWatch Negative


R O M A N I A

ALPINE BAU: Romanian Court Approves Insolvency Request


R U S S I A

KAMAZ OJSC: Moody's Assigns Ba1 CFR; Outlook Stable


S W E D E N

UNILABS HOLDING: S&P Assigns 'B' Corp. Credit Rating


U K R A I N E

* Moody's Downgrades Ratings on Five Ukrainian Issuers
* Moody's Lowers Ratings for Various Ukraine Banks
* Moody's Cuts Ratings for Kyiv, Kharkiv After Ukraine Downgrade


U N I T E D   K I N G D O M

AIG INT'L: Fitch Assigns 'BB+' Ratings to GBP Junior Debentures
BEATBOX BARS: Unsecured Creditors Unlikely to Get Money Back
IPSWICH TOWN FC: League Agrees to New Rules
LAMBERT SMITH: Countrywide Buys Business in Pre-Pack Deal
PUNCH TAVERNS: Expresses Going Concern Doubt on Loan Default Risk

ULYSSES PLC: Fitch Affirms 'CC' Rating on Class E Notes


X X X X X X X X

* Moody's Outlook for European Transport Sector is Stable
* BOOK REVIEW: A Legal History of Money in the United States


                            *********



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


CONERGY AG: Kawa to Buy Sales & Service Units; 350 Jobs Secured
---------------------------------------------------------------
Shamsiah Ali-Oettinger at PV-Magazine reports that US-based
financial investor Kawa Capital Management will be taking over
Conergy sales and service units in Germany, Italy, the UK and
Australia.  The acquisition is expected to secure 350 jobs,
according to the report.

Kawa will sign the respective purchase agreement for the
acquisition on Oct. 1, PV-Magazine relates.

According to PV-Magazine, the transaction does not cover Conergy
subsidiaries in Spain, France, Greece, India and Czech Republic,
which employ a total of around 110 staff.  Conergy said a
correlative agreement could not be reached, PV-Magazine notes.
An additional 500 employees at subsidiaries Mounting Systems and
Conergy SolarModule are still in limbo, PV-Magazine relays.

Conergy said it and preliminary insolvency administrator Sven-
Holger Undritz are currently negotiating with potential investors
and the state of affairs will be made clearer within next week,
PV-Magazine notes.

According to PV-Magazine, for the acquisition to be implemented,
Conergy's insolvency proceedings have to be opened and the
creditors committee's approval has to be sought.  Both the
creditor committee and the banks have already indicated their
approval of the sale of the subsidiaries, PV-Magazine states.
The insolvency administrator plans to apply to the district court
of Hamburg for opening the insolvency proceedings on Oct. 1,
PV-Magazine discloses.  The approval by the creditor committee is
thereby also expected to take place on the same date, PV-Magazine
notes.

Conergy AG is a Hamburg-based solar panel manufacturer.

The Company filed for insolvency on July 5 and stopped its module
production in Frankfurt an der Oder near the Polish border after
a delay in payments from a large project and the failure of
executives to bridge the financial gap, Bloomberg New reported.
Conergy said in a separate statement that manufacturing at its
insolvent Conergy SolarModule GmbH & Co. KG will resume on
Systems GmbH in Rangsdorf near Berlin continue, Bloomberg noted.
Conergy's sales last year dropped 37% to EUR473.5 million while
the net loss widened to EUR99 million, Bloomberg disclosed.


TAURUS CMBS: S&P Affirms 'CCC-' Rating on Class D Notes
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings on
all classes of notes in Taurus CMBS (Germany) 2006-1 PLC's
class A, B, C, and D notes.

Since S&P's previous review on April 18, 2013, the Hanse Centre
loan (EUR49.8 million) has been repaid in full and the Ruhr
portfolio loan's securitized balance decreased to EUR3.4 million
in July 2013 from EUR11.2 million in April 2013, following a
property disposal.  Also, the three other loans (Bewag Berlin,
Bremen, and Walzmuhle) repaid EUR4.4 million.

The issuer used the abovementioned EUR62.0 million of principal
proceeds received to reduce the class A notes' balance to
EUR139.4 million in July 2013 (from EUR201.5 million in April
2013).

S&P's ratings address timely payment of interest and full
repayment of principal no later than the legal final maturity
date in April 2015.

Although the EUR62.0 million principal repayment has helped to
improve the class A notes' creditworthiness, S&P's analysis
indicates that the available credit enhancement is not sufficient
to absorb the losses that the underlying properties would suffer
under higher rating stress scenarios.  S&P has therefore affirmed
its 'B+ (sf)' rating on the class A notes.

S&P has also affirmed its ratings on the class B, C, and D notes
because it still expects these classes of notes to experience
losses in its base case scenario.

Taurus CMBS (Germany) 2006-1 is a true sale transaction that
closed in July 2006.  It was initially backed by a pool of nine
loans secured against 35 commercial properties and 2,400
residential units in Germany.  Five of the loans have fully
repaid since closing.  The four outstanding loans are secured by
12 commercial properties.  The outstanding note balance has
decreased to EUR204.9 million from EUR571.25 million at closing.

            STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an property-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

Taurus CMBS (Germany) 2006-1 PLC
EUR571.25 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Affirmed

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



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


* GREECE: Attempts to Avoid International Bail-Out
--------------------------------------------------
Denise Roland at The Telegraph reports that Evangelos Venizelos,
Greece's deputy prime minister, has said the country is
determined to avoid another international bail-out even though it
faces a gaping hole in its public finances.

Greece faces a funding shortfall of EUR11 billion (GBP9 billion)
by 2016, according to the International Monetary Fund, but
Mr. Venizelos has claimed the recession-gripped country can
sidestep another bail-out by "reprofiling" its debt, the
Telegraph relates.  He also maintained that this measure would
not amount to creditors shouldering losses, The Telegraph notes.

His comments come as officials from the EU and IMF visit Greece
for a regular inspection of the country's finances, The Telegraph
discloses.  According to The Telegraph, they are also holding
talks about the release of the next EUR1 billion tranche of bail-
out cash from the second rescue deal, and the possibility of a
third bail-out.

If Greece is given further bail-out cash, the sums involved are
set to be much lower than the previous two packages, which run to
EUR210 billion, The Telegraph states.

EU figures are divided over the inevitability of a third bail-out
for Greece, The Telegraph says.  According to The Telegraph,
Mario Draghi, president of the European Central Bank, on Monday
described Greece's debt levels "sustainable" and said talk of
another rescue deal was "premature".  He added that Greece could
stage a return to the bond markets by the end of the year, making
a bail-out unnecessary, The Telegraph notes.



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


MFB HUNGARIAN: Fitch Rates Senior Unsecured Notes 'BB+(EXP)'
------------------------------------------------------------
Fitch Ratings has assigned MFB Hungarian Development Bank Private
Limited Company's upcoming senior unsecured notes an expected
Long-term rating of 'BB+(EXP)'.

Key Rating Drivers

The issue's expected Long-term rating is in line with MFB's Long-
term foreign currency Issuer Default Rating (IDR) of
'BB+'/Stable.  MFB's Long-term foreign currency IDR is at the
Support Rating Floor and it reflects what Fitch views as a
moderate probability that the Hungarian state would support the
bank if required.  Fitch believes that the government's
propensity to support MFB is likely to be strong.  However, its
ability to do this, and therefore the bank's Support Rating, is
limited by the sovereign ratings.

MFB plans to issue a medium-term senior unsecured bond in the US
market.  The issue's total amount (planned to be at least US$500
million) and final maturity are yet to be determined.  Fitch
expects that the bank will use the proceeds to refinance its
EUR500 million bond maturing in October 2013.

Rating Sensitivities

MFB's ratings and the bond's expected rating are sensitive to
changes in the Hungarian sovereign foreign currency Long-term IDR
(BB+/Stable).  Fitch believes that the state's strong propensity
to support MFB is unlikely to be revised in the foreseeable
future.



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


ANGLO IRISH: Liquidators Seek Protection from Probe
---------------------------------------------------
Patrick Fitzgerald, writing for Daily Bankruptcy Review, reported
that the liquidators of what was once what was once one of
Ireland's largest banks are asking a U.S. judge for a protective
order to shield them from investors who want to challenge their
U.S. bankruptcy case.

According to the report, KPMG's Kieran Wallace and Eamonn
Richardson, the special liquidators in the Irish insolvency
proceeding of the former Anglo Irish Bank Corp., are seeking a
court order protecting them from investors" legal discovery
demands that are " irrelevant, unnecessary and, as a consequence,
unduly burdensome," they argued in a bankruptcy-court filing on
Sept. 20.

The KPMG liquidators are in charge of Irish Bank Resolution
Corp., the liquidation vehicle created to wind down the bank, the
report related.

They were set to ask a U.S. bankruptcy judge on Sept. 20 to
recognize Ireland as the main forum for wrapping up Anglo Irish's
final affairs, the report added.  But an investor group that
includes Paul Singer's Elliott Management, which owns US$75
million in subordinated notes issued by the former Anglo Irish
Bank, says it wants to investigate, and may ultimately contest,
liquidation vehicle's Chapter 15 bankruptcy petition.

Lawyers for the investors, which also include Castleway
Properties LLC and Irish property developer John Flynn, say a
special law passed in February by Ireland's Parliament stripped
creditors of their rights and benefits the Irish government at
their expense, the report related. They say the Irish law, dubbed
the Bank Resolution Act, doesn't meet the requirement for
recognition required under U.S. bankruptcy law.

Judge Christopher Sontchi of the U.S. Bankruptcy Court in
Wilmington, Del., has scheduled a hearing on the dispute for
Oct. 7, the report further related.

                        About Anglo Irish

Anglo Irish Bank was an Irish bank headquartered in Dublin from
1964 to 2011.  It went into wind-down mode after nationalization
in 2009.  In July 2011, Anglo Irish merged with the Irish
Nationwide Building Society, with the new company being named the
Irish Bank Resolution Corporation (IBRC).

Standard & Poor's Ratings Services said that it lowered its long-
and short-term counterparty credit ratings on Irish Bank
Resolution Corp. Ltd. (IBRC) to 'D/D' from 'B-/C'.   S&P also
lowered the senior unsecured ratings to 'D' from 'B-'.  S&P then
withdrew the counterparty credit ratings, the senior unsecured
ratings, and the preferred stock ratings on IBRC.  At the same
time, S&P affirmed its 'BBB+' issue rating on three government-
guaranteed debt issues.

The rating actions follow the Feb. 6, 2013, announcement that the
Irish government has liquidated IBRC.

The former Irish bank sought protection from creditors under
Chapter 15 of the U.S. Bankruptcy Code on Aug. 26, 2013 (Bankr.
D. Del., Case No. 13-12159).  The former bank's Foreign
Representatives are Kieran Wallace and Eamonn Richardson.  Its
U.S. bankruptcy counsel are Mark D. Collins, Esq., and Jason M.
Madron, Esq., at RICHARDS, LAYTON & FINGER, P.A., in Wilmington,
Delaware.


CARL SCARPA: Files Application for Examinership
-----------------------------------------------
Aodhan O'Faolain and Ray Managh at The Irish Times report that
CS Calzature Ltd. and Carl Scarpa, owners and operators of the
well-known ladies footwear and fashion accessories retail chain
Carl Scarpa, have applied to the High Court to be placed into
examinership.

The two firms employ over 80 full time and part time staff, The
Irish Times discloses.  According to The Irish Times, the
companies cited high rents and the general economic downturn for
their currently difficulties.  The firms are seeking the
appointment of an examiner on the grounds they have a good
prospect of survival if certain steps are taken, The Irish Times
says.

The Carl Scarpa brand has been in existence since 1974.

On Wednesday, at the High Court, the firms, both with a
registered address at North Park, North Road, Finglas Co Dublin,
secured the protection of the High Court from their creditors,
The Irish Times relates.

When the matter was briefly mentioned before Mr. Justice Sean
Ryan, barrister Declan Murphy Bl for the companies said his
clients will petition the court next week for the appointment of
an examiner, The Irish Times notes.

According to The Irish Times, Counsel told the court it will put
the firm's creditors, which include the Revenue Commissioners
Ulster Bank, landlords and local authorities, on notice of the
application.

Mr. Justice Ryan agreed to adjourn the matter to Wednesday of
next week, The Irish Times discloses.



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


QUIRINUS PLC: S&P Lowers Rating on Class F Notes to 'CC'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC (sf)' from
'CCC (sf)' its credit rating on Quirinus (European Loan Conduit
No. 23) PLC's class F notes.

The Fairacre loan was one of three remaining loans in the pool.
The securitized loan had an outstanding balance of
EUR7,994,431.26.

The loan defaulted at maturity in February 2011.  The borrower
subsequently filed for insolvency in Luxembourg.  In July 2013,
the five supermarkets securing the loan were sold.  The
contracted sale price was EUR7,600,000 compared with an unpaid
loan balance of EUR7,994,431.

Although the purchaser contributed to certain costs, after
deducting for fees, costs, and expenses, as well as accrued
interest, there was a non-accruing interest (NAI) shortfall
amount of EUR342,369 applied to the class F notes on the Aug. 16,
2013 interest payment date (IPD).  In accordance with the
transaction documents, the principal balance used for calculating
interest accrued on the class F notes will be reduced by
EUR342,369.  As such, the class F notes will not receive full
interest payment, in S&P's view.

The rating action on the class F notes reflects S&P's view that
given the NAI amount outstanding, the class F notes will not
receive full interest payment on the next IPD and will experience
an interest shortfall.  As there is a virtual certainty that the
notes will experience a payment default, in accordance with S&P's
criteria for assigning 'CCC+', 'CCC', 'CCC-', and 'CC' ratings,
S&P has lowered to 'CC (sf)' from 'CCC (sf)' its rating on the
class F notes.

Quirinus (ELOC 23) is a 2006-vintage true sale commercial
mortgage-backed securities (CMBS) transaction that reaches legal
final maturity in February 2019.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an property-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



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


GRESHAM CAPITAL: S&P Affirms 'B+' Rating on Class E Notes
---------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Gresham Capital CLO II B.V.'s class VFN, A, B, C, and D notes.
At the same time, S&P has affirmed its rating on the class E
notes.

The rating actions follow S&P's assessment of the transaction's
performance using data from the Aug. 7, 2013 trustee report and
the application of its relevant criteria.

"We subjected the capital structure to our cash flow analysis to
determine the break-even default rate (BDR) for each class of
notes at each rating level.  In our analysis, we used the
reported portfolio balance that we consider to be performing
(EUR130,984,152), the current weighted-average spread (3.52%),
and the weighted-average recovery rates that we considered
appropriate.  We incorporated various cash flow stress scenarios
using alternative default patterns and levels, in conjunction
with different interest and currency stress scenarios," S&P said.

The class VFN and A notes have paid down further since S&P's
Aug. 31, 2012 review.  The notional balances are now
approximately 25% of their initial notional balances.  The
amortization of these senior classes has increased the available
credit enhancement and the overcollateralization ratio tests for
all classes of notes.  In addition, S&P has observed an increase
in the weighted-average spread and weighted-average recovery
rates.  These factors have led to increasing BDRs at each tranche
rating level.

Since S&P's previous review, the portfolio's overall credit
quality has remained stable and the transaction's weighted-
average life has increased.  As a result, S&P has observed only a
small decrease in the scenario default rates at each rating
level.

To mitigate the risk of foreign-exchange-related losses, the
issuer entered into currency options agreements with Barclays
Bank PLC (A/Stable/A-1) as a counterparty.  Under S&P's current
counterparty criteria, its analysis of the derivative
counterparty and its associated documentation indicates that it
cannot support ratings on the notes that are higher than 'A+
(sf)'.  To assess the potential impact on S&P's ratings, it has
assumed that the transaction does not benefit from the currency
options agreements. S&P concluded that, in this scenario, the
class VFN and A notes could achieve higher ratings than
previously assigned.  S&P has therefore raised its ratings on the
class A and B notes.

The results of S&P's credit and cash flow analysis indicate that
the class C and D notes' available credit enhancement is now
commensurate with higher ratings.  S&P has therefore also raised
its ratings on these classes of notes.

Taking into account the results of S&P's credit and cash flow
analysis, the available credit enhancement for the class E notes
is still commensurate with the currently assigned rating, in
S&P's opinion.  S&P has therefore affirmed its 'B+ (sf)' rating
on the class E notes.

Gresham Capital CLO II is a cash flow collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.  This transaction reached the
end of its reinvestment period in November 2012.

          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

Gresham Capital CLO II B.V.
EUR305 Million Secured And Deferrable Floating-Rate Notes And
(Equivalent) Variable Funding Notes

Ratings Raised

VFN          AAA (sf)        AA+ (sf)
A            AAA (sf)        AA+ (sf)
B            AA+ (sf)        AA (sf)
C            A+ (sf)         A (sf)
D            BBB- (sf)       BB+ (sf)

Rating Affirmed

E            B+ (sf)

VFN--Variable funding notes.


OAD: Declared Bankruptcy; Some 7,000 People Stranded
----------------------------------------------------
DutchNews.nl reports that some 7,000 people were effectively
stranded in their holiday location on Wednesday evening after Oad
went bust.

Oad was declared bankrupt on Wednesday afternoon, with the loss
of 1,450 jobs, DutchNews.nl relates.  The company shed 170 jobs
in March as part of a reorganization, DutchNews.nl recounts.

It is not yet clear how the holidaymakers will be brought back to
the Netherlands, DutchNews.nl notes.  People who have booked
breaks with Oad will either get their money back or a replacement
holiday, DutchNews.nl says.

Oad is a Dutch travel company.  It is one of the biggest travel
firms in the Netherlands.



===============
P O R T U G A L
===============


ESPIRITO SANTO: S&P Puts 'BB+' Rating on CreditWatch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services placed the 'BB+' global scale
and 'brAA+' national scale corporate credit ratings on
electricity distribution company, Espirito Santo Centrais
Eletricas S.A. (Escelsa), on CreditWatch negative.  S&P also
placed placed the 'brAA+' national scale corporate credit rating
on Escelsa's sister company, Bandeirante Energia S.A.
(Bandeirante), on CreditWatch negative.

On Sept. 18, 2013, S&P placed the 'BB' long-term sovereign rating
on the Republic of Portugal on CreditWatch negative.
Consequently, on September 20, S&P placed the 'BB+' long-term
rating on EDP - Energias de Portugal S.A. (EDP) on CreditWatch
negative because it views that utilities are generally
constrained by the rating on the sovereign where they are
domiciled. Exceptions are those, such as EDP, that have
extraordinary credit strength or other characteristics that
mitigate domestic risk factors.  S&P believes there is a
reasonable likelihood EDP would be able to withstand Portugal's
default.  S&P has stress-tested EDP's business and financial risk
profiles in a hypothetical Portuguese default scenario.  S&P
believes the utility's ability to service and repay debt is
superior to that of the sovereign.

S&P believes that the credit quality of Bandeirante and Escelsa
is integrally linked with that of its direct parent company, EDP
Energias do Brasil (not rated), which is in turn linked to its
controlling shareholder and ultimate parent, EDP.  The linkage
between Escelsa and Bandeirante and EDP is based on S&P's view
that EDP manages its subsidiaries under an integrated financial
strategy and it is actively engaged in managing each of their
operations.  S&P believes that deterioration of EDP's credit
quality can pressure those of its Brazilian subsidiaries by
taking a more aggressive financial strategy through increasing
leverage and more aggressive dividend upstream.

The negative CreditWatch placement mirrors that on EDP. A
downgrade of EDP could trigger a downgrade of Escelsa and
Bandeirante.  S&P aims to resolve the CreditWatch on Escelsa and
Bandeirante after resolving the CreditWatch on EDP within the
next three months.

As part of the CreditWatch resolution, S&P expects to review
Escelsa's and Bandeirante's strength in light of the potential
deterioration of EDP's creditworthiness, as well as reviewing if
creditors to the Brazilian subsidiaries enjoy certain protections
against potentially significant cash upstream that could allow
them to be rated higher than that of their ultimate parent.



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


ALPINE BAU: Romanian Court Approves Insolvency Request
------------------------------------------------------
Romania-Insider reports that a Romanian court has approved the
insolvency request for Alpine Bau Gmbh and appointed Casa de
Insolventa Transilvania as judiciary administrator.

The Romanian subsidiary of Alpine Bau Gmbh became insolvent after
its parent company declared bankruptcy, Romania-Insider relates.

It has also been affected by a drop in the construction sector on
the Romanian market, Romania-Insider notes.

In June 2013, Alpine Bau Gmbh, with a EUR2.5 billion debt and a
loss of EUR 450 million in 2012, went bankrupt, Romania-Insider
recounts.

The reorganization plan for Alpine in Romania will also take into
account the strategy deployed by the judiciary administrator of
Alpine Bau Gmbh, Romania-Insider discloses.

In Romania, Alpine has 160 employees and currently works on the
Arad bypass, the Brasov bypass, as well as on a segment of the
Nadlac Arad highway, Romania-Insider notes.

Alpine Bau GmbH is Austria's second biggest construction group.



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


KAMAZ OJSC: Moody's Assigns Ba1 CFR; Outlook Stable
---------------------------------------------------
Moody's Investors Service has assigned a Ba1 corporate family
rating  and a Ba1-PD probability of default rating to OJSC Kamaz
(KAMAZ). The outlook on the ratings is stable. This is the first
time Moody's has assigned a rating to KAMAZ.

Ratings Rationale:

As KAMAZ is 49.9% owned by the Russian state-owned corporation
"Rosstechnologii" (RosTec) Moody's has applied its rating
methodology for government-related issuers (GRIs) in determining
the company's CFR. According to this methodology, KAMAZ's rating
is driven by a combination of the following inputs:

- KAMAZ's baseline credit assessment (BCA) of b1

- The Baa1 local currency rating of the Russian government

- Moody's assessment of high default dependence between the
   company and the government

- Moody's assessment of a strong probability of state support in
   the event of financial distress.

Moody's assesses the default dependence between the Russian
government and KAMAZ as high given that (1) in the past four
years KAMAZ has derived around 13% of its annual revenues (on
average) from domestic sales to the Russian government agencies;
and (2) the company derives more than 80% of its revenues
domestically.

The rating agency assesses a strong probability of support for
KAMAZ from the government due to the history of state support,
including granting loans at reduced rates and providing explicit
guarantees to KAMAZ's debt, subsidizing the company's research
and development (R&D) expenses, granting KAMAZ a reduced property
tax rate, and the partial reimbursement of interest expenses
under certain types of loans as well as Moody's expectation that
going forward the government is likely to continue to support
KAMAZ in case necessary. Strong probability of support also
reflects (1) KAMAZ's importance to state security as it supplies
security and defense products in government contracts; (2) the
importance of the automotive industry in underpinning national
economic growth outside oil -- or other commodity-related
sectors. In addition, the Russian government, through RosTec
exercises significant influence over KAMAZ's strategy and holds
four seats (out of 11) in KAMAZ's Board of Directors.

KAMAZ's BCA is constrained by its limited product diversification
as trucks and spare parts represent around 80% of revenue in
2012, thus exposing the company to the cyclical nature of the
truck market illustrated by an history of high leverage (measured
by adjusted debt/EBITDA) which peaked at around 20x at year-end
2009, albeit reduced to 1.8x at year-end 2012 on the back of
growing profitability and reduced debt. It also reflects KAMAZ's
(1) geographical concentration of sales in Russia which exposes
KAMAZ to weaknesses and volatility of this particular market ;
(2) limited track record of operations under the recently adopted
moderately conservative financial policy with net debt/EBITDA of
below 2.5x, net debt/capital of below 40%, and EBITDA/interest
expenses of above 5.0x; (3) by KAMAZ's sizeable capital
expenditure programme of around $1 billion in 2013-15, suggesting
negative free cash flow (FCF) generation in the next 12-18
months. and (4) modest size in comparison to its global peers
such as Daimler AG (A3, stable) or MAN SE (A3, positive) which
may constrain KAMAZ's ability to diversify globally and compete
with larger global peers or to perform sufficient R&D. Moody's
also sees execution risks to the company's plans aimed to
increase revenue and profitability in the next 12-24 months due
to slow GDP growth in Russia of around 2.5%-3.5% (2012: 3.4% )
which is lower than that expected by KAMAZ.

More positively the BCA factors in KAMAZ's strong position in the
Russian trucks market, with its share in the domestic market
exceeding 30%, and with a stable share in most of its business
segments. Moody's also expects that future challenges to KAMAZ's
market position -- due to growing competition from global
automotive producers -- will be partly mitigated by the company's
plans to launch (in 2013-20) new generation of vehicles that are
competitive with those of peers. However, the rating agency notes
execution risks to these plans. The BCA also positively factors
in KAMAZ's close co-operation -- through joint ventures and
partnerships -- with leading global auto parts and automotive
producers such as Cummins, ZF and KAMAZ's minority shareholder
Daimler. Moody's believes this co-operation will (1) increase the
competitiveness of KAMAZ's products; (2) help to confer access to
enhanced R&D, and best engineering and management practices; (3)
help to penetrate other market segments or increase capacity
utilization of KAMAZ's dealership network; and (4) optimize
KAMAZ's operations due to outsourcing production of certain auto
parts to partners and focusing on key company competencies.

KAMAZ's BCA also factors in the company's focus on efficiency
improvements and cost optimization which, coupled with the
partnership with Daimler, has already resulted in strengthening
of company's adjusted EBITA margin to 6.4% in 2012 (2011: 3%);
and established dealership network in Russia and the Commonwealth
of Independent States.

Rating Outlook

The stable outlook on KAMAZ's CFR reflects Moody's expectations
of sustained stable business conditions for KAMAZ's Russian
trucks markets. The outlook also assumes that the company's
strategic plan will result in the gradual renewal of its product
portfolio and improvement of profitability whilst maintaining a
solid financial profile within a stated financial policy.

What Could Move The Rating Up/Down

Moody's does not envisage positive pressure being exerted on
KAMAZ's rating in the next 12-18 months. Nevertheless, Moody's
would consider a positive action if (1) conditions in the
domestic trucks market remain robust; (2) KAMAZ were continue
executing its strategic plan as scheduled; and (3) the company
were to demonstrate a track record of solid profitability with
EBITA margin of above 7% on a sustainable basis, financial
metrics within its stated financial policy, positive free cash
flow and a solid liquidity profile.

Downward pressure could be exerted on KAMAZ's rating on evidence
of (1) the market environment becoming significantly more
challenging than anticipated in terms of volumes or prices,
resulting in material deterioration in profitability (measured by
adjusted EBITA margin) below 4% on a sustained basis, and in
KAMAZ's leverage (measured as adjusted debt/EBITDA) above 3.75x
on a sustained basis; and (2) material debt-financed expansion
projects and/or acquisitions, or debt-financed dividend payouts
to shareholders or other shareholder initiatives, which causes
the company to materially deviate from its stated financial
policies or financial thresholds and also leads to deterioration
of company's liquidity. A one-notch downgrade or upgrade of the
sovereign rating would not in itself trigger a rating action on
KAMAZ's rating, assuming all the other GRI inputs remain
unchanged.

The principal methodology used in this rating was the Global
Heavy Manufacturing Rating Methodology published in November
2009. Other methodologies used include the Government-Related
Issuers Methodology Update published in July 2010.

OJSC Kamaz is a leading player in the Russia market producing a
wide range of commercial vehicles, including trucks, trailers,
tow tractors and buses. The company also manufactures engines,
power units, and various tools and auto parts. Russia's 100%
state-owned investment holding "State Corporation
"Rosstechnologii" (RosTec, not rated) holds a 49.9% stake in
KAMAZ. Another key shareholder is Daimler AG (which owns 15% of
KAMAZ's share capital). In 2012, KAMAZ generated revenue of
RUB117 million (around US$4.0 billion) and adjusted EBIT of
RUB6.9 million (around US$200 million).



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


UNILABS HOLDING: S&P Assigns 'B' Corp. Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B'
long-term corporate credit rating to Sweden-based medical
diagnostics company Unilabs Holding AB (Unilabs).  The outlook is
stable.

"At the same time, we assigned our issue rating of 'B' to the
EUR355 million senior secured notes and EUR130 million senior
secured floating-rate notes issued by Unilabs SubHolding AB.  The
recovery rating on these notes is '4', indicating our expectation
of average (30%-50%) recovery prospects in the event of a payment
default, albeit at the low end of the range," S&P said.

In addition, S&P assigned its issue rating of 'CCC+' to the
EUR200 million payment-in-kind (PIK) toggle notes issued by
Unilabs MidHolding AB.  The recovery rating on the PIK toggle
notes is '6', indicating S&P's expectation of negligible (0%-10%)
recovery prospects in the event of a payment default.

The ratings on Unilabs reflect S&P's view of the company's
relatively aggressive capital structure on account of its
ownership by private equity groups Apax Partners, Apax France,
and Nordic Capital.  The ratings on Unilabs also reflect S&P's
assessment of its financial risk profile as "highly leveraged"
and its business risk profile as "fair."

S&P estimates that Unilabs' Standard & Poor's-adjusted debt-to-
EBITDA ratio will be about 10x by Dec. 31, 2013.  S&P's estimate
of adjusted debt includes the EUR485 million senior secured
notes, the EUR200 million PIK toggle notes, about EUR442 million
in the form of preference shares and shareholder loans, and about
EUR80 million of lease adjustments.

Although S&P views the preference shares and shareholder loans as
debt-like, it recognizes their cash-preserving function.
Excluding these debt-like instruments, Unilabs' financial risk
profile would remain in line with a "highly leveraged"
assessment, as S&P's criteria define the term, with debt to
EBITDA of more than 5x by Dec. 31, 2013.  Due to Unilabs' long-
dated debt maturity profile and acquisitive strategy (S&P's base
case assumes annual acquisitions of about EUR75 million), any
future improvement in leverage is likely to result from higher
profitability rather than from any reduction in debt, thereby
leading to a relatively high cost of funding.  This could, in
S&P's view, potentially compromise Unilabs' operating
flexibility.

"We estimate that despite the potentially negative effects of
European public spending cuts on health care, Unilabs will
achieve adjusted EBITDA of about EUR124 million in 2013.  This
will cover by 3x annual cash interest payments of about EUR40
million, supported by positive free operating cash flow (FOCF).
Although we believe that Unilabs' adjusted EBITDA cash interest
coverage should remain about 3x in the first two years after the
PIK notes' issuance, we forecast that this coverage will fall
close to 2x thereafter, reflecting the "pay if you can" condition
on the PIK notes.  We consider adjusted EBITDA cash interest
coverage above 2x as commensurate with the 'B' rating," S&P
noted.

"Our assessment of Unilabs' business risk profile as "fair" under
our criteria is underpinned by the company's geographic diversity
and the contracted nature of a significant portion of its revenue
base.  Unilabs is one of the leading operators of laboratories on
a pan-European basis, offering services in clinical laboratory
testing, medical imaging, and drug development.  The company has
operations in 11 countries and is the market leader in
Switzerland, Sweden, and Norway, as well as holding strong
positions in France and Iberia," S&P added.

S&P views Unilabs' revenue diversification and its growing size
as an advantage in a fragmented, highly regulated, and price-
competitive environment.  S&P views positively the fact that 35%
of Unilabs' revenues derive from long-term contracts, the
majority of which it renewed in 2012-2013.  As well as providing
greater revenue visibility, the long-term nature of the contracts
enables the company to exploit cost advantages through common
procurement and overhead optimization.  S&P estimates that
Unilabs' EBITDA margins will remain in the high-teens over the
coming years.  This is in line with the margins of the company's
European peers.

Unilabs' business risk profile is further supported by what S&P
views as favorable underlying trends and characteristics of the
clinical laboratory services industry.  Chief among these is the
atomistic supply-and-demand structure, involving a multitude of
individual orders and transactions with no dependence on one
large customer or contracts.  Payment risk is negligible since
most bills are settled by public and private health insurance or
hospitals.  In addition, demographic factors such as aging
populations, increasingly unhealthy lifestyles that result in
prevalent diseases such as diabetes and cancer, and the
increasing demand for precise diagnostics and early detection
will in S&P's view continue to drive volumes.

These strengths are partially offset, in S&P's opinion, by
Unilabs' highly acquisitive business model, as well as its
exposure to unfavorable conditions in Spain and Portugal, which
jointly account for about 15% of revenues.  Although negative
pricing pressure is prevalent throughout the industry, the effect
in Portugal is more pronounced due to recent austerity measures.
In Spain, the company has recently experienced delays in
reimbursement.  S&P also acknowledges that there is a certain
degree of risk that arises from the contracted nature of the
company's revenues, through the potential loss of a major
contract or a significant reduction in pricing on renewal.

The stable outlook reflects S&P's view that despite the
potentially negative effects of European public spending cuts on
health care, Unilabs will sustain positive underlying revenue
growth of at least low single digits, while successfully
integrating new acquisitions and at least maintaining its
operating performance and cash flow generation.

S&P views adjusted EBITDA cash interest coverage of 2x at all
times and positive FOCF generation as commensurate with the 'B'
rating.  S&P could take a negative rating action if adjusted
EBITDA interest coverage drops to less than 2x.  This would most
likely occur if Unilabs' operating margins deteriorate due to an
inability to profitably integrate newly acquired operations.

A positive rating movement is unlikely, in S&P's view, due to
Unilabs' already high adjusted leverage.  However, S&P would
likely take a positive rating action if Unilabs' adjusted EBITDA
cash interest coverage rises above 2.5x on a sustainable basis.



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


* Moody's Downgrades Ratings on Five Ukrainian Issuers
------------------------------------------------------
Moody's Investors Service has downgraded to Caa1 from B3 the
corporate family ratings  and to Caa1-PD from B3-PD the
probability of default ratings PDR of five companies operating in
Ukraine, namely: Metinvest B.V., Fintest Trading Co Limited
(Donetsksteel), MHP S.A., Lemtrans LLC and Ferrexpo Plc. Moody's
has also downgraded the national scale ratings (NSR) of four of
these companies to Ba3.ua, by three notches from Baa3.ua in the
case of Fintest Trading Co Limited (Donetsksteel), MHP S.A. and
Lemtrans LLC, and by four notches from Baa2.ua in the case of
Metinvest B.V. In addition, Moody's has downgraded to
Caa1/(P)Caa1 from B3/(P)B3 senior unsecured ratings of notes
issued by MHP and Metinvest while the rating on the senior
unsecured notes of Ferrexpo Finance plc, a subsidiary of Ferrexpo
Plc, remains at Caa1. Concurrently, the rating agency has placed
all of these ratings on review for downgrade.

The rating action follows Moody's action to downgrade Ukraine's
sovereign rating to Caa1 from B3 and place it on review for
downgrade, as well as lower the country's foreign-currency bond
country ceiling to Caa1 from B3, on September 20, 2013.

Ratings Rationale:

The affected companies' business profiles and financial metrics
are strong for a Caa1 rating. However, their ratings are
constrained by that of the sovereign, because the companies are
exposed to Ukraine's political, legal, fiscal and regulatory
environment, given that most or all of their assets are located
within the country. The companies' capacity to serve foreign
currency debt could be negatively affected by the potential
actions taken by Ukrainian government to preserve the country's
foreign-exchange reserves. In addition, the companies' revenues
and cash flows generated in the country are exposed to foreign-
currency transfer and convertibility risks, which are reflected
in the Caa1 foreign-currency bond country ceiling for Ukraine.

The review for downgrade reflects the fact that a potential
further downgrade of Ukraine's sovereign rating may result in the
further lowering of Ukraine's foreign-currency bond country
ceiling. In addition to considerations related to the sovereign
rating, Moody's review of the companies' ratings will be focused
on an assessment of the companies' individual ability to address
increasing country and foreign exchange risks.

What Could Change The Ratings Up/Down

The companies' ratings will be ultimately dependent on further
developments at the sovereign level. The ratings are likely to be
downgraded if there is a further downgrade of Ukraine's sovereign
rating and/or lowering of the foreign-currency bond country
ceiling.

Conversely, positive pressure could be exerted on the ratings if
Moody's were to upgrade Ukraine's sovereign rating and/or raise
its foreign-currency bond country ceiling, provided there is no
material deterioration in the company-specific factors, including
their operating and financial performance, market positions and
liquidity.

Principal Methodologies

The principal methodology used in rating Fintest Trading Co
Limited (Donetsksteel) was Global Mining Industry published in
May 2009.

The principal methodologies used in rating Ferrexpo Plc and
Ferrexpo Finance plc were Global Mining Industry published in May
2009, and Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

The principal methodologies used in rating Metinvest B.V. were
Global Steel Industry published in October 2012, and Loss Given
Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.

The principal methodology used in rating Lemtrans LLC was Global
Surface Transportation and Logistics Companies published in April
2013.

The principal methodologies used in rating MHP S.A. were Global
Protein and Agriculture Industry published in May 2013, and Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated
by a ".nn" country modifier signifying the relevant country, as
in ".mx" for Mexico.

Metinvest B.V., registered in the Netherlands, is the holding
company of a vertically integrated group, which is one of the
largest steelmakers and iron ore producers in the CIS. The
company has three hot steel plants with the capacity to produce
approximately 15 million tons of crude steel annually, equivalent
to approximately 45% of all steel cast in Ukraine in 2012, a
rolling mill and a large diameter mill in Ukraine and also has
rolling mills in Italy, Bulgaria and the UK. The company produces
finished flat and long steel products, large diameter pipes and
semi-finished steel products (slabs and billets). In 2012,
Metinvest produced approximately 12.5 million tons of crude steel
and 36.2 million tons of iron ore concentrate and mined 11.6
million tons of coking coal. In 2012, Metinvest reported revenue
of US$12.6 billion and EBITDA of US$2.0 billion. The company is
privately owned. The major shareholders of the group are a
Ukrainian investment holding company, System Capital Management
(SCM), with a 71.25% share in Metinvest, and Smart group, which
owns 23.75%.

Headquartered in Donetsk, Ukraine, and incorporated in Cyprus,
Donetsksteel is one of the leading Ukrainian coking coal mining
companies. The company has a significant reserve base of highest
quality coal (grade K as per local classification) and is
vertically integrated into coke and steel production. In 2012,
Donetsksteel mined approximately 8.4 million metric tons (mmt) of
raw coal, produced 4.9 mmt of coal concentrate, 2.8 mmt of coke,
1.3 mmt of pig iron and 0.17 mmt of steel products (sections and
plates). The company's major external purchases are iron ore for
steel products and modest amounts of coal of various grades to
complement its own grades for coke production. In 2012, the
company had revenues of more than $2.0 billion. In 2011,
approximately 36% of Donetsksteel's revenues were generated in
Ukraine (mainly US dollar-denominated sales), with the remainder
generated in Europe (35%), Asia (22%), the CIS, the Baltic
countries and South America.

MHP S.A. is one of Ukraine's leading agro-industrial groups. The
company's operations include the production of poultry and
sunflower oil, as well as the production and sale of convenience
foods. In addition, MHP is vertically integrated into grain and
fodder production, and operates one of the largest land banks in
Ukraine. The holding company, MHP SA, is domiciled in Luxembourg,
while all of MHP's production assets are located in Ukraine. In
2012, the company's dollar-denominated total revenue and adjusted
EBITDA amounted to around $1.4 billion and $487 million,
respectively.

Lemtrans is the largest private freight rail transportation
company in Ukraine. In 2012, the company derived 79% of its
revenues from freight transportation and other related services,
17% from trading freight railcars and producing railway
equipment, and 4% from financial leasing of railway equipment.
Lemtrans is fully controlled by System Capital Management Limited
(SCM).

Ferrexpo Plc, headquartered in Switzerland and incorporated in
the UK, is a mid-sized iron ore pellet producer with mining and
processing assets located in Ukraine. The group has total Joint
Ore Reserves Committee Code (JORC) classified resources of 6.7
billion tons, around 1.5 billion tons of which are proved and
probable reserves. The average grade of Ferrexpo's ore is
approximately 31% Fe. In last 12 months to June 2013, the group
generated sales of $1.47 billion.


* Moody's Lowers Ratings for Various Ukraine Banks
--------------------------------------------------
Moody's Investors Service has lowered the baseline credit
assessments (BCAs) of 10 banks, and downgraded the debt and
deposits ratings -- as well as National Scale Ratings (NSRs) --
of 11 banks and one leasing company in Ukraine.

At the same time, Moody's placed on review for further downgrade
the deposit and debt ratings, and NSRs, of 13 banks (2 banks'
deposit ratings were at Caa1 level already) and one leasing
company.

Rating Rationale:

All rating actions were prompted by the weakening of Ukraine's
credit profile, as reflected by Moody's downgrade on September
20, 2013 of Ukraine's government bond rating to Caa1 from B3 and
the related adjustments to the country's ceilings, mainly (1) the
foreign-currency bank deposit ceiling lowered to Caa2 from Caa1;
(2) the local-currency bank deposit and bond ceiling lowered to
Caa1 from B2; and (3) the foreign-currency bond ceiling lowered
to Caa1 from B3.

These ceilings cap the maximum ratings that can be assigned to
banks and other issuers domiciled in the country, thereby
prompting the downgrades of the 11 financial institutions and one
leasing company. The sovereign ratings were also placed on review
for further downgrade, which informs Moody's decision to place
the financial institutions' debt and deposit ratings on review
for further downgrade.

What Could Move The Ratings Up/Down

These actions follow the weakening of Ukraine's credit profile,
as reflected by downgrades of the sovereign ratings and country
ceilings. A confirmation of the sovereign ratings would lead to a
confirmation of the financial institution ratings currently
placed on review. Conversely, a further downgrade of the
sovereign ratings would lead to a downgrade of the financial
institution ratings.

List Of Rating Actions:

The following rating actions were taken:

PRIVATBANK

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b2)

- Long-term local-currency deposit rating downgraded to Caa1 from
B2

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- Long-term foreign-currency senior unsecured debt rating
downgraded to Caa1 from B3

- Long-term foreign-currency subordinated debt rating downgraded
to Caa2 from B3

- National Scale Rating (NSR) downgraded to Ba3.ua from A3.ua

- Stable outlook maintained on the BFSR; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

Savings Bank Of Ukraine

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B3

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- Long-term local-currency senior unsecured debt rating
downgraded to Caa1 from B3

- Long-term foreign-currency senior unsecured debt rating
downgraded to Caa1 from B3

- NSR downgraded to Ba3.ua from Baa3.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings were placed on review for downgrade

Ukreximbank

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B3

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- Long-term local-currency senior unsecured debt rating
downgraded to Caa1 from B3

- Long-term foreign-currency senior unsecured debt rating
downgraded to Caa1 from B3

- Long-term foreign-currency subordinated debt rating downgraded
to Caa2 from Caa1

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings were placed on review for downgrade

Raiffeisen Bank Aval

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B2

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- NSR downgraded to Ba3.ua from A3.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

Prominvestbank

- BFSR unchanged at E, equivalent to a caa1 BCA

- Long-term local-currency deposit rating downgraded to Caa1 from
B3

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- Long-term local-currency senior unsecured debt rating
downgraded to Caa1 from B3

- NSR downgraded to Ba3.ua from Baa3.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

Subsidiary Bank Sberbank Of Russia

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B2

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- NSR downgraded to Ba3.ua from A3.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

First Ukrainian International Bank

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B3

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- Long-term foreign-currency senior unsecured debt rating
downgraded to Caa1 from B3

- NSR downgraded to Ba3.ua from Baa3.ua

The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

Bank Finance And Credit

Bank Finance and Credit's debt and deposit ratings were placed on
review for downgrade in line with Ukraine's Caa1 sovereign
ratings.

- BFSR unchanged at E, equivalent to a caa1 BCA

- Long-term local-currency deposit rating unchanged at Caa1,
placed on review for downgrade

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- Long-term foreign-currency debt rating unchanged at Caa1,
placed on review for downgrade

- NSR downgraded to Ba3.ua from Ba2.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

OTP Bank (Ukraine)

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B2

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- NSR downgraded to Ba3.ua from A3.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

VAB Bank

VAB Bank's debt and deposit ratings were placed on review for
downgrade in line with Ukraine's Caa1 sovereign ratings.

- BFSR unchanged at E, equivalent to a caa1 BCA

- Long-term local-currency deposit rating unchanged at Caa1,
placed on review for downgrade

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- Long-term foreign-currency debt rating unchanged at Caa1,
placed on review for downgrade

- NSR downgraded to Ba3.ua from Ba1.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

Pivdennyi Bank

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B3

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- Long-term local-currency senior unsecured debt rating
downgraded to (P)Caa1 from B3(P)

- NSR downgraded to Ba3.ua from Baa3.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

Credit Dnepr Bank

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B3

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- NSR downgraded to Ba3.ua from Baa3.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

Ukrinbank

- BFSR downgraded to E from E+, now equivalent to a caa1 BCA
(formerly b3)

- Long-term local-currency deposit rating downgraded to Caa1 from
B3

- Long-term foreign-currency deposit rating downgraded to Caa2
from Caa1

- NSR downgraded to Ba3.ua from Baa3.ua

- The BFSR carries a stable outlook; all the other long-term
global-scale ratings and NSR were placed on review for downgrade

Raiffeisen Leasing Aval

The rating action on Raiffeisen Leasing Aval's supported national
scale ratings was triggered by a downgrade of the deposit ratings
of its parent Raiffeisen Bank Aval.

- Long-term national scale issuer rating downgraded to Ba3.ua
from Baa3.ua

- Long-term national scale corporate family rating downgraded to
Ba3.ua from Baa3.ua

- NSRs were placed on review for downgrade

The principal methodology used in these ratings was Global Banks
published in May 2013.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated
by a ".nn" country modifier signifying the relevant country, as
in ".ua" for Ukraine.


* Moody's Cuts Ratings for Kyiv, Kharkiv After Ukraine Downgrade
----------------------------------------------------------------
Moody's Investors Service has downgraded the foreign and local-
currency ratings of the Ukrainian cities of Kyiv and Kharkiv to
Caa1 from B3 and placed the ratings on review for further
downgrade.

These actions were prompted by the weakening of the Ukrainian
government's credit profile, as captured by Moody's recent
downgrade of Ukraine's government bond rating to Caa1 from B3 and
the placing of the ratings on review for further downgrade.

Ratings Rationale:

Rationale For Downgrades Of Kyiv And Kharkiv's Ratings To Caa1
From B3

The downgrade of Ukraine's government bond rating and review for
further downgrade has direct implications for the ratings of Kyiv
and Kharkiv given their institutional, financial and
macroeconomic linkages with the sovereign.

These institutional and financial linkages are reflected in the
strict dependence of Ukrainian municipalities on government
budget planning as the central government annually sets up
indicative budget revenues and spending targets for cities. The
limited budgetary flexibility makes the cities exposed to a
possible reduction in subsidies from the central government to
enable it to balance its own budget. Moody's also notes that the
sovereign has the power to temporarily withdraw liquidity from
municipal treasury accounts in the event of need, as has occurred
in the past. Additional financial pressure on the municipalities
may stem from reduced capacity on the part of central government
to provide them with short-term interest-free soft loans to cover
immediate liquidity gaps.

The macroeconomic linkages between central government and Kyiv
and Kharkiv are explained by the composition of the cities' tax
revenue. This is dominated by volatile personal income tax, which
is exposed to business cycles. As such, the two cities remain
exposed to a deterioration in domestic economic conditions.

Moody's notes that Kyiv's ratings are constrained by its volatile
budget revenue and a weak liquidity profile, as a result of which
the municipality has only limited revenue capacity to absorb
shocks. Kyiv's credit profile is also constrained by the foreign-
currency risks arising from the fact that around 35% of its net
direct and indirect debt is denominated in foreign currency.
Given the external liquidity risks at the national level, Kyiv's
refinancing risks will likely remain an important credit factor
in the long term. At the same time, Kyiv's position as the
Ukrainian capital and national economic hub, as well as its more
flexible expenditure composition compared with other Ukrainian
municipalities, remain mitigating factors to the aforementioned
risks.

In addition, Moody's notes that Kharkiv's ratings are constrained
by rigid operating expenditure and a weak liquidity profile.
These pressures are only partially counterbalanced by the city's
limited exposure to market volatility due to its low level of
debt (2012: 10.6% of operating revenue).

What Could Change The Ratings Down/Up

Downward pressure could be exerted on Kyiv and Kharkiv's ratings
following a further downgrade of the sovereign rating and/or
material weakening of these municipalities' standalone fiscal
performances. In contrast, a ratings upgrade and/or change in the
rating outlooks of both cities could arise as a result of a
similar rating action on the sovereign rating.

Rationale For Review

The review outcome will be primarily linked to the sovereign
review.

Specific economic indicators as required by EU regulation are not
applicable for these entities.

On September 20, 2013, a rating committee was called to discuss
the ratings of the Kyiv, City of and Kharkiv, City of. The main
point raised during the discussion was: The systemic risk in
which the issuers operate has materially increased.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2013.

The weighting of all rating factors is described in the
methodology used in this rating action, if applicable.

The City of Kyiv is the capital of Ukraine and the country's
economic hub. It has a population of 2.8 million, which is around
6.0% of the national population, while the city's gross regional
product accounts for approximately 18% of national GDP. The city
boasts a diversified economy, with the tertiary sector accounting
for 85%-87% of GRP.

The City of Kharkiv is situated in the eastern part of the
Ukraine and has historically been a major transport link between
the eastern part of the country and Russia. It is the second-
largest city in the country, with a population of around 1.5
million, or just over 3% of the national population.



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


AIG INT'L: Fitch Assigns 'BB+' Ratings to GBP Junior Debentures
---------------------------------------------------------------
Fitch Ratings expects to assign a rating of 'BBB' to American
International Group, Inc.'s (AIG) US$1 billion issuance of 4.125%
senior notes due 2024.  The transaction is expected to close on
Oct. 2, 2013.

The new issue rating is equivalent to the ratings on AIG's
existing senior debt.  Proceeds from the issue will be used for
general corporate purposes.  The new issuance will increase AIG's
pro forma financial leverage ratio (excluding financial related
debt) modestly to approximately 20% from 19% at June 30, 2013.

On Aug. 8, 2013, Fitch affirmed all of AIG's ratings, including
AIG's Issuer Default Rating (IDR) of 'BBB+' with a Stable
Outlook.

RATING SENSITIVITIES

Key triggers that could lead to future rating upgrades include:

  -- Demonstration of higher and more consistent earnings within
     Property/Casualty or Life & Retirement operating segments
     that translate into average earnings-based interest coverage
     above 7.0x, corresponding with operating earnings of
     approximately $11 billion;

  -- Further improvement in AIG's capital structure and leverage
     metrics that reduce the company's total financing and
     commitments (TFC)ratio to below 0.7x;

  -- A shift toward consistent underwriting profits would promote
     positive movement in the property/casualty subsidiary
     financial strength ratings.

Key triggers that could lead to a future rating downgrade
include:

  -- Increases in financial leverage as measured by financial
     debt-to-total capital to a sustained level above 30%, or a
     material increase in the TFC ratio from current levels;

  -- Large underwriting losses and/or heightened reserve
     volatility of the company's non-life insurance subsidiaries
     that Fitch views as inconsistent with that of comparably-
     rated peers and industry trends;

  -- Deterioration in the company's domestic life subsidiaries'
     profitability trends;

  -- Material declines in risk-based capital(RBC) ratios at
     either the domestic life insurance or the non-life insurance
     subsidiaries, and/or failure to achieve the above noted
     capital structure improvements.

Fitch has assigned the following rating:

  -- USD1 billion of 4.125% senior unsecured notes due Feb. 15,
     2024 at 'BBB'.

Fitch currently rates the AIG entities as follows:

AGC Life Insurance Company
American General Life Insurance Company
The Variable Annuity Life Insurance Company
United States Life Insurance Company in the City of New York

  -- Insurer Financial Strength (IFS) rating 'A+'; Stable
Outlook.

AIU Insurance Company
American Home Assurance Company
Chartis Casualty Company
AIG Europe Limited
AIG MEA Insurance Company Limited
American International Overseas Limited
Chartis Property Casualty Company
Chartis Specialty Insurance Company
Commerce & Industry Insurance Company
Granite State Insurance Company
Illinois National Insurance Company
Insurance Company of the State of Pennsylvania
Lexington Insurance Company
National Union Fire Insurance Company of Pittsburgh, PA
New Hampshire Insurance Company

  -- Insurer Financial Strength (IFS) rating 'A'; Stable Outlook.

American International Group, Inc.

  -- Long-term IDR at 'BBB+' Outlook Stable.

AIG International, Inc.

  -- Long-term IDR 'BBB+', Outlook Stable;
  -- USD175 million of 5.60% senior unsecured notes due July 31,
     2097 'BBB'.

American International Group, Inc.

  -- Various senior unsecured note issues 'BBB';
  -- USD1.5 billion of 4.875% senior unsecured notes due
     June 2022 'BBB'.
  -- USD1.2 billion of 4.250% senior unsecured notes due
     Sept. 15, 2014 'BBB';
  -- USD800 million of 4.875% senior unsecured notes due
     Sept. 15, 2016 'BBB';
  -- EUR420.975 million of 6.797% senior unsecured notes due
     Nov. 15, 2017 'BBB';
  -- GBP323.465 million of 6.765% senior unsecured notes due
     Nov. 15, 2017 'BBB';
  -- GBP338.757 million of 6.765% senior unsecured notes due
     Nov. 15, 2017 'BBB';
  -- USD256.161 million of 6.820% senior unsecured notes due
     Nov. 15, 2037 'BBB';
  -- USD1 billion of 3.375% senior unsecured notes due Aug. 15,
     2020 'BBB';
  -- USD250 million of 2.375% subordinated notes due
     Aug. 24, 2015 'BBB-';
  -- EUR750 million of 8.00% series A-7 junior subordinated
     debentures due May 22, 2038 'BB+';
  -- USD4 billion of 8.175% series A-6 junior subordinated
     debentures due May 15, 2058 'BB+';
  -- GBP309.850 million of 5.75% series A-2 junior subordinated
     debentures due March 15, 2067 'BB+';
  -- Eur409.050 million of 4.875% series A-3 junior subordinated
     debentures due March 15, 2067 'BB+';
  -- GBP900 million of 8.625% series A-8 junior subordinated
     debentures due May 22, 2068 'BB+';
  -- USD687.581 million of 6.25% series A-1 junior subordinated
     debentures due March 15, 2087 'BB+'.

AIG Life Holdings, Inc.

  -- Long-term IDR 'BBB+'; Outlook Stable.
  -- USD150 million of 7.50% senior unsecured notes due July 15,
     2025 'BBB';
  -- USD150 million of 6.625% senior unsecured notes due Feb. 15,
     2029 'BBB';
  -- USD300 million of 8.50% junior subordinated debentures due
     July 1, 2030 'BB+';
  -- USD500 million of 7.57% junior subordinated debentures due
     Dec. 1, 2045 'BB+'.
  -- USD500 million of 8.125% junior subordinated debentures due
     March 15, 2046 'BB+'.

ASIF II Program
ASIF III Program
ASIF Global Financing

  -- Program ratings 'A'.


BEATBOX BARS: Unsecured Creditors Unlikely to Get Money Back
------------------------------------------------------------
Peter Law at Wales Online reports that Beatbox Bars Ltd.'s
administrators said unsecured creditors owed almost GBP1 million
by the company, which ran bars and clubs in Cardiff, are unlikely
to get any of their money back.

The company, which owned Fire Island, Buffalo and Ten Feet Tall
in the city center, went into administration in July, blaming
financial difficulties and a downturn in trade, Wales Online
recounts.

According to Wales Online, a statement of the joint
administrators' proposals reveals there is "insufficient funds"
to pay the GBP940,820 owed to unsecured creditors, which includes
many local breweries and other suppliers.

The document shows that total deficiency to creditors is GBP1.2
million with preferential creditors owed GBP82,231 and debts
secured by floating charges standing at GBP322,227, Wales Online
discloses.

Since the company collapsed, Buffalo and Ten Feet Tall have
continued to trade and the administrators have received four
offers to buy the clubs, Wales Online relates.  Fire Island
immediately shut and the leasehold was subsequently sold to Evol
Wales Ltd., the company behind Newport micro-brewery Tiny Rebel,
Wales Online recounts.


IPSWICH TOWN FC: League Agrees to New Rules
-------------------------------------------
TWTD News reports that the Ipswich Town Football Club has agreed
to new rules which will see clubs going into administration
docked 10 points from the beginning of next season.  Town spent
four months in administration from February this year onwards,
according to TWTD News.

The report relates that the controversial move has been brought
in after some teams were perceived to have gained a playing
advantage through being administration, although most clubs in
this position have struggled due to its financial constraints.

The report notes that league Chairman Sir Brian Mawhinney said:
"This is necessary because the Football League are the guardian
of competitiveness in our divisions and we can't have clubs who
go into administration gaining an advantage. . . . It is a
fundamentally different approach and there was a healthy debate -
but I pay tribute to the clubs for attaching that significance to
it."

The report discloses that the League has also introduced
parachute payments for clubs relegated from Division One into Two
and Two into Three.

The report adds that they also plan to publish a list detailing
any club's payments to player's agents every six months.


LAMBERT SMITH: Countrywide Buys Business in Pre-Pack Deal
---------------------------------------------------------
Express & Star reports that Countrywide, the UK's biggest estate
agency chain, has staked GBP34.1 million on a resurgence in the
commercial property market by snapping up 240-year-old
consultancy Lambert Smith Hampton.

The group is acquiring LSH in a pre-pack administration deal that
wipes out debts left over from an ill-fated management buy-out
just before the market crashed, Express & Star discloses.

But current shareholders will lose out as the majority of the
purchase price will be used to pay off a private equity group
which owns the debt, Express & Star says.

According to Express & Star, executives believe that while it has
struggled with debts dating from the time of the GBP46 million
buy-out in 2007, LSH's operational performance remains robust.

Accounts for last year showed an operating profit of GBP5 million
on sales of GBP64.1 million, Express & Star says.  Gross assets
as of last month were GBP17.7 million, Express & Star states.

Countrywide is acquiring LSH after reaching an agreement with
Sankaty, which owned the company's debt, and involves LSH first
going into administration, Express & Star discloses.

According to Express & Star, a source close to the deal admitted
shareholders would be hit as the bulk of the GBP34.1 million
purchase price would go to Sankaty.

Countrywide, as cited by Express & Star, said that as part of the
deal, LSH would be discharged from any legacy debt from the
management buy-out and placed "on a firm financial footing".  It
is subject to approval by the Financial Conduct Authority,
Express & Star notes.

Founded in 1773, Lambert Smith Hampton is described as one of the
largest commercial property consultancies in the UK and Ireland
with 26 offices and 861 employees.  LSH has a range of leading
clients across the banking, finance, transport, telecoms and
retail sectors, including more than half of all London borough
councils.  It recently handled the sale of 800 former railway
sites raising GBP300 million.


PUNCH TAVERNS: Expresses Going Concern Doubt on Loan Default Risk
-----------------------------------------------------------------
John Ficenec at The Telegraph reports that Punch Taverns,
Britain's second largest pub group, has admitted it could be
unable to continue trading as a going concern unless an agreement
can be reached with its lenders.

Punch, which owns 4,100 pubs run by semi-independent landlords
across the country, made the disclosure as it announced a sharp
fall in profits, The Telegraph relates.

According to The Telegraph, the group revealed it had net debt of
GBP2.3 billion at Aug. 17 and needs to ease the terms of two big
loans held against the pub assets of the company to avoid a
default.  The most recent attempt by Punch to cut its debt was
rejected by lenders in June, The Telegraph notes.

The group, as cited by The Telegraph, said that failure to reach
an agreement on the debt pile could result in a default on the
two loans, allowing lenders to request early repayment of all
outstanding borrowings.

"These circumstances represent a material uncertainty that casts
significant doubt on the ability of a significant part or
substantially all of the Group to continue as a going concern,"
The Telegraph quotes the company as saying.

However, the Punch board said it believes "a consensual
restructuring can be launched in the fourth quarter of 2013",
despite the discussions taking longer than expected, The
Telegraph relays.

Punch Taverns plc is a United Kingdom-based pub company.  The
Company is engaged in the operation of public houses under either
the leased model or as directly managed by the Company.  The
Company operates in two business segments: punch partnerships, a
leased estate and punch pub company, a managed estate.


ULYSSES PLC: Fitch Affirms 'CC' Rating on Class E Notes
-------------------------------------------------------
Fitch Ratings has affirmed Ulysses (European Loan Conduit No. 27)
Plc, as follows:

  -- GBP249m class A (XS0308745107) affirmed at 'BBBsf'; Outlook
     revised to Stable from Negative

  -- GBP76m class B (XS0308747657) affirmed at 'Bsf'; Outlook
     revised to Stable from Negative

  -- GBP48m class C (XS0308748200) affirmed at 'B-sf'; Outlook
     Negative

  -- GBP45m class D (XS0308748622) affirmed at 'CCCsf'; Recovery
     Estimate (RE) RE50%

  -- GBP11m class E (XS0308749356) affirmed at 'CCsf'; RE0%

Key Rating Drivers

The affirmation is primarily driven by the stabilization in
operating performance (as evidenced by recent positive leasing
activity); a capex program that is underway, which should shore
up occupational demand for the property; and the gradual decay of
the implied swap liability as it approaches maturity (2017,
together with the bonds).  However, set against these, interest
coverage remains below 1x (0.86x on the securitized debt and
0.67x on the whole loan), which has resulted in the servicer
advance facility (SAF) being drawn down by GBP15.3 million as at
July.  While drawing the SAF should prevent a note event of
default, it does reveal the costs of delaying loan default
resolution.

In October 2012, a receiver was put in place to oversee the
business plan, including a capex program proposed by the sponsor
(and asset manager), Beacon Capital, which is also funding it by
way of a dedicated facility under which principal ranks senior
and interest junior to the issuer's claims.  Fitch does not
expect the special servicer to look to sell the collateral in the
short term, but rather to manage it for the duration of the capex
program in a bid to improve performance and allow the swap to run
off.  The swap's current mark-to-market value for the bank
counterparty is in the region of GBP80 million, which Fitch
estimates should fall below GBP20 million by 2016 (leaving one
year until final maturity of the notes. This estimate also
assumes no significant change in interest rates).

While there is uncertainty over the sustained appeal of a
property with a challenging lease profile positioned on the edge
of a market set for considerable new office supply, two new lease
signings in the past quarter (both to US law firms, taking a
total of 32,000 sq ft) should help the borrower consolidate its
financial position.  These leases represent an increase of GBP1.6
million in projected rent (i.e. after rent-free periods end in
mid-2014), and take vacancy down to 4.5% from 7% reported at the
time of the previous rating action.  In Fitch's view, income is
at a sustainable level, with limited downside risk.

The loan is secured by CityPoint, an office tower located in the
City of London.  It was revalued at GBP407.5 million in December
2012, 38% down from closing (GBP660 million was recorded in May
2007).  Excluding the latent swap liability, this pushed the
loan-to-value ratio (LTV) up to 105.3% on the securitized portion
and 131.3% on the whole loan, from 65% and 81.1% respectively at
closing.  When considering current latent swap liabilities, the
LTV increases further to 125% and 150%.  These measures explain
the distressed ratings of the class D and E notes, both of which
are expected to suffer losses (in full for the class E notes).

Rating Sensitivities

In narrowing the special servicer's flexibility to manage loan
work-out, any weakening in the financial position of the borrower
with respect to its securitized debt -- e.g. if a key tenant
defaulted -- would risk an accelerated disposal and higher swap
breakage costs.  Any suggestion of renewed operating difficulties
could prompt a downgrade of the class A, B and C notes.
Conversely, assuming both the capex program is allowed to run its
course successfully and the property market improves, there is
limited scope for positive rating action in future, particularly
for the class B notes.



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


* Moody's Outlook for European Transport Sector is Stable
---------------------------------------------------------
Traffic growth will improve in 2014 for core EU toll roads and
airports as GDP recovers, while traffic growth for peripheral EU
toll roads and airports will be flat over the same period as
economic conditions stabilize in these countries, says Moody's
Investors Service in its Industry Outlook report on the European
transport infrastructure sector entitled "European Transport
Infrastructure Industry: Positive 2014 Growth for Core EU Traffic
Underpins Stable Outlook." As a result, Moody's has changed its
outlook for the sector to stable from negative.

The outlook reflects Moody's expectations for the fundamental
business conditions in the industry over the next 12-18 months.
The outlook horizon means the rating agency places greater weight
on expected 2014 traffic volumes than the weaker volumes forecast
for 2013. The sector had been on negative outlook since June
2012.

"We expect the stabilization in Europe's economic conditions seen
this year to give way to tentative GDP growth in 2014, which will
support traffic volumes in core EU countries such as France and
Germany," says Andrew Blease, an Associate Managing Director in
Moody's Infrastructure Finance team and author of the report.
"However, the euro area, as a whole, could still see a period of
prolonged economic weakness before any return to significant
positive growth."

Moody's forecasts core EU toll road growth of 0.0% to 3.0% in
2014 and -2% to 1% in 2013. Toll road conditions in peripheral EU
economies, such as Italy and Spain, will only stabilize in 2014,
with forecast traffic growth of -3.0% to 2.0%, compared with an
expected contraction of -7.0% to -2.0% in 2013.

Meanwhile, Moody's believes EU airport passenger volumes will
perform better than toll roads over its 12-18 month forecast
horizon as the former are less exposed to weak domestic
conditions in

European economies. Moody's forecasts core EU passenger growth of
2.0% to 5.0% in 2014, compared with expected 2013 growth of 1.0%
to 4.0%. The rating agency expects EU periphery airport traffic
will stabilize in a range of -2.5% to 2.5% in 2014, while growth
for 2013 will be -5.0% to 0.0%.

Those airports able to accommodate the expansion of low-cost
carriers will be best placed to capture growth. These will be
spread across Europe such as Stansted in the UK and Lisbon in
Portugal. The most successful hub airports will be those that
serve larger airlines with strong route networks and/or are less
exposed to competition from Middle East carriers, e.g., the UK's

Heathrow, Schiphol in the Netherlands and Copenhagen in Denmark.

Moody's outlook could revert to negative if lower-than-expected
2014 economic growth in the euro area led to a contraction in
core and periphery EU airport passenger and/or toll road traffic
volume. The continued fragility of the periphery EU economies
means they have a greater risk of underperformance in terms of
airport and toll road traffic volumes against our current
guidance.


* BOOK REVIEW: A Legal History of Money in the United States
-------------------------------------------------------------

Author: James Willard Hurst
Publisher: Beard Books
Paperback: US$34.95
Review by Gail Owens Hoelscher
Order your personal copy today and one for a colleague at
http://is.gd/x8Gesf

This book chronicles the legal elements of the history of the
system of money in the United States from 1774 to 1970. It
originated as a series of lectures given by James Hurst at the
University of Nebraska in 1973. Mr. Hurst is quick to say that
he , as a historian of the law, took care in this book not to
make his own judgments on matters outside the law. Rather, he
conducted an exhaustive literature review of economics, economic
history, and banking to recount the development of law over the
operations of money. He attempted to "borrow the opinions of
qualified specialists outside the law in order to provide a
meaningful context in which to appraise what the law has done or
failed to do."

Mr. Hurst define money, for the purposes of this books, as "a
distinct institutional instrument employed primarily in
allocating scarce economic resources, mainly through government
and market processes," and not shorthand for economic, social,
or political power held through command of economic assets."
From the beginning, public and legal policy in the U.S. centered
on the definition of legitimate uses of both law affecting
money, and allocation of power over money among official
agencies, both federal and state. The foundations of monetary
policy were laid between 1774 and 1788. Initially, individual
state legislatures and the Continental Congress issued paper
currency in the form of bills of credit. The Constitutional
Convention later determined that ultimate control of the money
supply should be at the federal level. Other issues were not
clearly defined and were left to be determined by events.
The author describes how law was used to create and maintain a
system of money capable of servicing the flow of resource
allocations in an economy of broadly dispersed public and
private decision making. Law defined standard money units and
made those units acceptable for use in conducting transactions.
Over time, adjustment of the money supply was recognized as a
legitimate concern of law. Private banks were delegated
expansive monetary action powers throughout the 1900s and
private markets for gold and silver were allowed to affect the
money supply until 1933-34. Although the Federal Reserve Act
was not aimed clearly at managing money for goals of major
economic adjustment, it set precedents by devaluing the dollar
and restricting the use of gold.

Mr. Hurst devotes a large part of his book to key issues of
monetary policy involving the distribution of power over money
between the nation and the states, between legal and market
processes, and among major agencies of the government. Until
about 1860, all major branches of government shared in making
monetary policy, with states playing a large role. Between 1908
and 1970, monetary policy became firmly centralized at the
national level, and separation or powers questions arose between
the Federal Reserve Board, the White House (The Council of
Economic Advisors), and the Treasury.

The book was an enormous undertaking and its research
exhaustive. It includes 18 pages of sources cited and 90 pages
of footnotes. Each era of American legal history is treated
comprehensively. The book makes fascinating reading for those
interested in the cause and effect relationship between legal
processes and economic processes and t hose concerned with
public administration and the separation of powers.
James Willard Hurst (1910-1997) is widely regarded as the
grandfather of American legal history. He graduated from
Harvard Law School in 1935 and taught at the University of
Wisconsin-Madison for 44 years.


                            *********

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 * * *