/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/090309.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 Monday, March 9, 2009, Vol. 10, No. 47 Headlines A R M E N I A * ARMENIA: IMF Approves US$540 Million Stand-By Arrangement * Fitch Comments on Armenia's US$540 Million Proposed IMF Loan A U S T R I A ALPHA LLC: Claims Registration Period Ends March 18 DP-BAUUNTERNEHMUNG LLC: Claims Registration Period Ends March 19 HOLZHOFEN & CO: Claims Registration Period Ends March 18 IHC LLC: Claims Registration Period Ends March 18 KEHA ENGINEERING: Claims Registration Period Ends March 20 ST TRANS: Claims Registration Period Ends March 20 WTS LLC: Claims Registration Period Ends March 19 C Y P R U S DELANCE LTD: S&P Cuts Long-Term Corporate Credit Rating to 'B' G E O R G I A BANK OF GEORGIA: Moody's Confirms 'D-' Financial Strength Rating TBC BANK: Moody's Confirms 'D-' Financial Strength Rating G E R M A N Y CLEEVE TECHNOLOGY: Claims Registration Period Ends March 25 DELTAPLAN GMBH: Claims Registration Period Ends March 26 EUROPEAN SHIPPING: Claims Registration Period Ends April 1 MATAU IMPORT: Claims Registration Period Ends March 26 O.S.P. SECURITY: Claims Registration Period Ends March 31 VAC FINANZIERUNG: Weak Performance Cues Moody's Junk Rating WUNDI GMBH: Claims Registration Period Ends March 27 G R E E C E TITAN CEMENT: S&P Affirms Corporate Credit Ratings at 'BB+/B' WIND HELLAS: Liquidity Concerns Cue Fitch's Negative Watch I R E L A N D PSION SYNTHETIC: Fitch Cuts Ratings on 4 Classes of Notes to Low-B WATERFORD WEDGWOOD: Fitch Affirms and Withdraws 'D' Issuer Rating K A Z A K H S T A N AKSU 2004 LLP: Creditors Must File Claims by April 10 ASTYK AVIA: Creditors Must File Claims by April 10 EXPO LLP: Creditors Must File Claims by April 10 GUN-2 LLP: Creditors Must File Claims by April 10 KUNDYKOL LLP: Creditors Must File Claims by April 10 NEXUS LLP: Creditors Must File Claims by April 10 NURHAN LLP: Creditors Must File Claims by April 10 SMART MASTER: Creditors Must File Claims by April 10 STYLE STROY: Creditors Must File Claims by April 10 TRISTAN OIL: Faces Regulatory Woes Over TNG's Change of Ownership TRISTAN OIL: Moody's Junks Corporate Family Rating from 'B3' TRITON ASIA: Creditors Must File Claims by April 10 K Y R G Y Z S T A N BEST TRADE: Creditors Must File Claims by March 20 L U X E M B O U R G REDWOOD: Moody's Reviews Rating on EUR11.7MM Notes for Downgrade N E T H E R L A N D S FIXED-LINK BV: Fitch Downgrades Rating on Class C2 Notes to 'D' N O R W A Y GOLDEN OCEAN: Hemen Buys Two-Thirds of Convertible Bond Issue R U S S I A AGRO-STROY-INVEST LLC: Creditors Must File Claims by March 29 GRAY LLC: Creditors Must File Claims by March 29 KIRISHSKIY BIO-CHEMICAL: Creditors Must File Claims by April 28 NALCHIKSKIY TRIKOTAZH: Claims Filing Ends April 28 NORD-LES LLC: Creditors Must File Claims by March 29 STROY-TSEM-SERVIS LLC: Creditors Must File Claims by March 29 VAGRIUS LLC: Creditors Must File Claims by March 29 ZAVOD STANKOKONSTRUKTSIYA: Claims Filing Period Ends April 28 ZEL-AK-BANK OJSC: Creditors Must File Claims by April 28 ZISVALD LLC: Creditors Must File Claims by March 29 S P A I N TDA CAM 10: S&P Downgrades Rating on Class C Notes to 'B' S W E D E N VOLVO AB: Board Withdraws Proposed Higher Bonus Caps for Execs VOLVO CAR: Says Financing Talks With Swedish Gov't Progressing S W I T Z E R L A N D ALPENMILCH & HONIG: Creditors Must File Claims by April 10 C.F. GASTRO: Deadline to File Proofs of Claim Set March 13 CLEANING SHOP: Creditors Have Until May 11 to File Claims LOCHER SECURITY: Creditors Must File Proofs of Claim by April 30 PROSHOP OBERBURG: Creditors' Proofs of Claim Due by April 30 P45 RECORDS: March 29 Set as Deadline to File Claims SUN FUN: Creditors Must File Proofs of Claim by March 29 UBS AG: Fitch Downgrades Individual Rating to 'D' T U R K E Y ARCELIK AS: Fitch Cuts Local Currency Long-Term IDR to 'BB' U K R A I N E ANTAL RESOURCE: Creditors Must File Claims by March 20 EUROMONOLIT-F LLC: Creditors Must File Claims by March 20 MOTORCAR SALON: Creditors Must File Claims by March 20 RUBICON LLC: Creditors Must File Claims by March 19 SLOT LTD: Creditors Must File Claims by March 19 VITIAZ LLC: Creditors Must File Claims by March 19 VYSUN-MTS-SERVICE LLC: Creditors Must File Claims by March 19 U N I T E D K I N G D O M ASHTEAD GROUP: S&P Changes Outlook to Negative; Keeps 'BB-' Rating CAPMARK SERVICES: Fitch Downgrades Servicer Rating to 'CPS2+' COCO RIBBON: Enters Administration Amid Sales Slump CORNHILL CONSTRUCTION: Two Subsidiaries Placed Into Administration FRASER EAGLE: Enters Administration; 180 Jobs at Risk ITV PLC: Moody's Downgrades Senior Unsecured Ratings to 'Ba2' ITV PLC: S&P Lowers Long-Term Corporate Credit Rating to 'BB-' LLOYDS BANKING: U.K. Gov't Provides US$367 Bln in Asset Insurance MACKINTOSH & PARTNERS: Appoints Liquidators from Tenon Recovery MWPA LTD: Taps Joint Liquidators from Baker Tilly SPRINGFIELD ENGINEERING: Appoints Joint Liquidators from PKF TATA MOTORS: Jaguar Workers Accept Shorter Week, Pay Freeze TATA MOTORS: Moody's Downgrades Corporate Family Rating to 'B3' T & A LOGISTICS: Calls in Joint Liquidators from Tenon Recovery T M PROPERTIES: Taps Joint Liquidators from Tenon Recovery T.G. MULTIPLAS: Appoints Joint Liquidators from Tenon Recovery TRADEWINDS INTERNATIONAL: Appoints Liquidators from Baker Tilly TRIBUNE LTD: Moody's Junks Rating on US$10 Mil. Notes from 'B2' TURNBULL LTD: Taps Joint Liquidators from Tenon Recovery * PwC Says UK Companies Face Deep and Prolonged Recession * BOND PRICING: For the Week March 2 to March 6, 2009 ********* ============= A R M E N I A ============= * ARMENIA: IMF Approves US$540 Million Stand-By Arrangement ---------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) on Friday, March 6, 2009, approved a 28-month SDR368 million (about US$540 million) Stand-By Arrangement for Armenia to support the country's program to adjust to the deteriorated global outlook, restore confidence in the currency and financial system, and protect the poor. The approval makes the amount equivalent to SDR161.5 million (about US$237 million) immediately available and the remainder in nine installments subject to quarterly reviews. The Stand-By Arrangement entails exceptional access to IMF resources, amounting to about 400 percent of Armenia's quota. It was approved under the Fund's fast-track Emergency Financing Mechanism procedures. The authorities' program is based on a consistent set of measures regarding exchange rate, monetary, financial, and fiscal policies, as well as continued structural reforms. Key elements include: * Return to a flexible exchange rate regime. The Central Bank of Armenia (CBA) announced on March 3 that it will no longer intervene in the market, except to smooth extreme volatility, and raised its policy interest rate by 100 basis points. Following the announcement, the dram depreciated about 20 percent, and since then, has broadly remained in that range. * Strengthening of the financial sector to maintain stability and confidence. Key aspects of the CBA's policy response include liquidity support operations, as needed, and enhanced banking supervision. * A revision of fiscal priorities to maintain macroeconomic stability, while protecting social outlays and public investment, in light of the expected revenue shortfall. The authorities intend to cut back on non-priority spending while providing an increase in social spending of 0.3 percent of GDP, relative to the budget, to protect the poor through well-targeted social safety nets. Additional external financing will be used to boost public investment. Armenia's gross external financing requirements are projected at about US$1.6 billion for 2009, and will remain elevated through 2011, albeit with a slight downward trend. The Stand-By Arrangement will cover a large share of the country's 2009-2011 financing gap. Additional financing will be provided by Armenia's donors and international partners, including the World Bank. Following the Executive Board discussion on Armenia, Mr. Murillo Portugal, Deputy Managing Director and Acting Chair, said: "Since the approval of a low-access PRGF arrangement in November 2008, Armenia has been confronted by a variety of major external shocks. Reflecting the sharp deterioration in global economic conditions, private transfers and capital inflows slowed considerably and international commodity prices have dropped severely, affecting mining exports and production. In light of a rapid decline in international reserves and growing financing needs, the authorities have requested additional financial assistance from the Fund. "With the adverse global developments, real growth is expected to contract in 2009, reflecting the downturn in Russia and other countries in the region. Falling international prices, lower growth, and exchange rate depreciation will help reduce the external current account deficit. Medium-term prospects remain good. "Sound policies are essential to maintain macroeconomic stability. The recent return to a flexible exchange rate will help cushion the impact of the global downturn and eventual further regional deterioration. An appropriately tight monetary policy is necessary to contain the inflationary pressures stemming from the depreciation and support demand for dram-denominated assets. While potential negative impact of the depreciation on the financial sector seems unlikely, contingency plans are available to help address any such effects. In light of the expected revenue shortfall, fiscal policy will remain prudent, protecting social outlays and public investment by reducing non-priority spending. "Maintaining the structural reform agenda will contribute to macroeconomic stability and a strengthened business environment. Key elements include the completion of the unfinished tax policy and tax administration reform agenda, and progress on financial sector reforms. "The Fund is confident that the policy package put in place by the authorities is appropriate and strong," Mr. Portugal said. Recent Economic Developments The global crisis has confronted Armenia with a number of large external shocks. Remittances and capital inflows, which sustained rapid economic growth in recent years, have decelerated markedly. Falling international commodity prices adversely affected mining, a key export sector. GDP growth came to a halt in the fourth quarter, and fell to 6.8 percent for the year as a whole, from over 13 percent in 2007. Following the rapid unwinding of international prices and domestic demand, annual CPI inflation fell to 1 percent in February 2009. With exports being hit by the global downturn and imports growing strongly through October, the external current account deficit rose to an estimated 12½ percent of GDP in 2008. The rapid and unexpected deterioration of the economic situation had a strong impact on program performance under the PRGF arrangement. Most of the end-December 2008 quantitative performance criteria were missed. The authorities, recognizing the changed circumstances and the large increase in their financing needs, have requested the Stand-By arrangement and also requested the cancellation of the PRGF arrangement. Program Summary The authorities' program aims to achieve the necessary external adjustment, restore confidence in the domestic currency and the banking sector, and protect the poor. Their program is based on a consistent set of policies in the exchange rate, monetary, financial, and fiscal areas as well continued structural reforms. As part of the program, the authorities are returning to a flexible exchange rate regime. In particular, the authorities have indicated that they will no longer intervene in the market, except to smooth extreme volatility. Under a managed float, the authorities would gradually return to their inflation-targeting framework. Strengthening financial stability will be a key part of the authorities' program. The authorities will implement short-term emergency measures to stabilize the system, while at the same time enacting more structural measures to ensure the soundness of the system going forward. Key aspects to be addressed are liquidity support operations and enhancing banking supervision. Fiscal priorities will be revised. To partly offset the anticipated revenue shortfall for 2008, the authorities intend to cut back on non-priority spending and introduce some tax policy measures, yielding savings of about 0.8 percent of GDP. Accordingly, the program aims at limiting the deficit, excluding non-programmed externally financed investment projects, to 2.8 percent of GDP compared to a deficit target of 1 percent of GDP in the announced budget. The IMF supports the protection of social spending embedded in the program. The program accommodates an increase in social spending of 0.3 percent of GDP, relative to the budget, to protect the poor through well-targeted social safety nets. The program also provides room for additional infrastructure and investment spending as foreign financing materializes. The authorities will continue their wide-ranging structural reform agenda outlined in their Sustainable Development Program. This agenda is aimed at deepening productivity-enhancing structural reforms, and improving governance. A key area will be continued efforts to strengthen the business environment, with a focus on tax administration reforms and the fight against corruption. Armenia joined the IMF on May 28, 1992; its quota is SDR92 million (about US$135.2 million) and its outstanding credit to the IMF (as of end-January 2009) is SDR87.495 million (US$128.6 million). * Fitch Comments on Armenia's US$540 Million Proposed IMF Loan -------------------------------------------------------------- Fitch Ratings said that a proposed IMF loan facility for US$540 million would support the adjustment of Armenia's economy in the face of a global and regional economic shock, and support the outlook for its sovereign ratings. Armenia's foreign and local currency Issuer Default Ratings are 'BB' with Stable Outlooks. The Country Ceiling is 'BB+' and the country's Short-term rating is 'B'. "Armenia's decision to seek a precautionary IMF program and allow a freer float for the currency is a welcome signal of the authorities' cautious approach to managing current difficulties," says Andrew Colquhoun, Director in Fitch's Sovereigns Group. "However, the reserves loss to end-January indicates the scale of the shock, and suggests there is little room for policy missteps which could undermine macroeconomic stability and increase downwards pressure on the ratings." IMF Managing Director Dominique Strauss-Kahn has requested that the IMF's Board approve a US$540 million, 28-month Stand-By Arrangement for Armenia, at a planned 6 March meeting. A program approval would follow a 24% fall in official reserves to US$1.26 billion by end-January 2009, from US$1.66 billion at end-2007. The central bank has said it spent US$360 million supporting the Armenian dram at around 305 to 1 US$ during 2008, to support confidence in the partly-dollarised financial system amid global financial turmoil and political tensions. The CBA says it will now permit greater exchange-rate flexibility, and expects the AMD to settle around 370 to the US$. However, the CBA has held back from formally committing to an AMD target or band. The IMF program will include support to Armenia's banks, enabling them to absorb the consequences of AMD depreciation for the 38% of loans in the system denominated in foreign currency. With bank credit to the private sector of only 17% of GDP at end-2008, any potential problems in the still relatively well-capitalized banking sector should be more manageable than for most of Armenia's regional peers. Armenia's GDP growth slowed to 6.8% in 2008, from 13.8% in 2007. The economy contracted by 0.2% in Q408, hit by an 11% fall in construction. The sharp downturn in the Russian economy in Q408 is likely to have affected remittance receipts, an important source of foreign exchange and demand. The IMF projects that Armenia's economy could shrink 1.5% in 2009, although the authorities expect growth of around 2% driven mainly by fiscal stimulus, partly funded from official sources. In addition to the likely IMF program, Armenia is expected to receive a US$500 million credit from Russia, and up to US$525 million from the World Bank for SME financing over four years. Securing and successfully implementing the IMF program and sustained domestic policy discipline would support the ratings. Geopolitical risk remains a background feature in a volatile region, although there have been signs of progress towards a resolution of Armenia's frozen conflict with neighboring Azerbaijan. Domestic political risk appears to have eased after the election-related violence of March 2008, although a downturn in the economy could spark further unrest. The public finances remain a rating strength, with government debt projected by Fitch at around only 14% of GDP by end-2008. ============= A U S T R I A ============= ALPHA LLC: Claims Registration Period Ends March 18 --------------------------------------------------- Creditors owed money by LLC Alpha (FN 247037s) have until March 18, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Helmut Klementschitz Friedrichgasse 6/12 8010 Graz Austria Tel: 0316/81 00 00 Fax: 0316/81 00 00 81 E-mail: ra.klementschitz@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:45 a.m. on March 25, 2009, for the examination of claims at: Graz Land Court by Civil Cases (638) Room 222 Graz Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Feb. 2, 2009, (Bankr. Case No. 26 S 15/09i). DP-BAUUNTERNEHMUNG LLC: Claims Registration Period Ends March 19 --------------------------------------------------------------- Creditors owed money by LLC DP-Bauunternehmung (FN 234303p) have until March 19, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Norbert Schopf Esteplatz 5/5 1030 Vienna Austria Tel: 534 90-0 Fax: 534 90-50 E-mail: office@schopf-zens.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on April 2, 2009, for the examination of claims at: Trade Land Court of Vienna (007) Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 28, 2009, (Bankr. Case No. 5 S 9/09x). HOLZHOFEN & CO: Claims Registration Period Ends March 18 -------------------------------------------------------- Creditors owed money by LLC Holzhofen & Co. (FN 74793s) have until March 18, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Michael Zsizsik Schinitzgasse 7 8605 Kapfenberg Austria Tel: 03862-22161 Fax: 03862-22161-10 E-mail: info@zsizsik.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on April 1, 2009, for the examination of claims at: Land Court of Leoben (609) Hall IV First Floor Austria Headquartered in Muerzzuschlag, Austria, the Debtor declared bankruptcy on Jan. 22, 2009, (Bankr. Case No. 17 S 3/09y). IHC LLC: Claims Registration Period Ends March 18 ------------------------------------------------- Creditors owed money by LLC IHC (FN 39520v) have until March 18, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Helmut Klementschitz Friedrichgasse 6/12 8010 Graz Austria Tel: 0316/81 00 00 Fax: 0316/81 00 00 81 E-mail: ra.klementschitz@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on March 25, 2009, for the examination of claims at: Graz Land Court by Civil Cases (638) Room 222 Graz Austria Headquartered in Graz, Austria, the Debtor declared bankruptcy on Feb. 2, 2009, (Bankr. Case No. 26 S 14/09t). KEHA ENGINEERING: Claims Registration Period Ends March 20 ---------------------------------------------------------- Creditors owed money by LLC Keha Engineering (FN 271878x) have until March 20, 2009, to file written proofs of claim to the court-appointed estate administrator: Roland Zimmerhansl Harrachstrasse 6 4020 Linz Austria Tel: 0732657070 Fax: 073265707065 E-mail: zimmerhansl@sdsp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on March 20, 2009, for the examination of claims at: Land Court of Linz (458) Room 522 Linz Austria Headquartered in Rohrbach, OO, Austria, the Debtor declared bankruptcy on Jan. 26, 2009, (Bankr. Case No. 12 S 5/09m). ST TRANS: Claims Registration Period Ends March 20 -------------------------------------------------- Creditors owed money by LLC ST Trans (FN 65047h) have until March 20, 2009, to file written proofs of claim to the court- appointed estate administrator: Dr. Wolfgang Reinisch LLC Reinisch & Wisiak Rechtsanwalte Hauptplatz 28 8430 Leibnitz Austria Tel: 03452/83296 Fax: 03452/83296-20 E-mail: leibnitz@reinisch-wisiak.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:00 p.m. on April 2, 2009, for the examination of claims at: Graz Land Court by Civil Cases (638) Room 227 Graz Austria Headquartered in Deutsch Goritz, Austria, the Debtor declared bankruptcy on Jan. 26, 2009, (Bankr. Case No. 25 S 10/09x). WTS LLC: Claims Registration Period Ends March 19 ------------------------------------------------- Creditors owed money by LLC WTS (FN 182316m) have until March 19, 2009, to file written proofs of claim to the court-appointed estate administrator: Dr. Edmund Roehlich Am Heumarkt 9/I/11 1030 Wien Austria Tel: 713 46 51 Fax: 713 84 35 E-mail: proksch@eurojuris.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on April 2, 2009, for the examination of claims at: Trade Court of Vienna (007) Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Jan. 27, 2009, (Bankr. Case No. 5 S 7/09b). =========== C Y P R U S =========== DELANCE LTD: S&P Cuts Long-Term Corporate Credit Rating to 'B' -------------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long-term corporate credit rating on Cyprus-based Delance Ltd. to 'B' from 'BB-'. The outlook is negative. At the same time S&P lowered the senior unsecured debt rating on Delance's finance vehicle Colgrade Ltd. to 'B-' from 'B+'. The recovery rating is unchanged at '5', indicating S&P's expectation of modest (10%-30%) recovery in the event of payment default. Delance Ltd. is the holding company of Rolf Group, which is Russia's largest importer and retailer of foreign-branded cars. "The downgrade reflects our view that Rolf's liquidity position will weaken significantly because demand for foreign-branded cars in the Russian car market is weakening," said Standard & Poor's credit analyst Anna Stegert. Sales have declined significantly over recent months and S&P believes this trend will continue well into 2009, and potentially beyond, owing to a weakening Russian economy and lower disposable incomes of Russian consumers. The downgrade also reflects S&P's view that the continuing depreciation of the ruble against the dollar presents considerable uncertainties for the company because it increases the ruble- denominated costs of imported cars. In the Russian car market, these cost increases are usually passed on to customers. In an already weak market environment this could translate into a considerable competitive disadvantage for retailers selling imported cars compared with those selling Russian cars or others that have been produced domestically. As of Dec. 31, 2008, Rolf had US$810 million of outstanding debt, of which a large portion (US$310 million) is short-term debt. Although, S&P believes that Rolf would be able to release working capital in times of slowing demand and has some flexibility over its largely expansionary capital expenditures, the company depends on the renewal of some of its short-term credit lines. In S&P's opinion, the risk of not being able to renew these lines will be further aggravated because covenant headroom under bank facilities is likely to tighten in S&P's current base-case scenario, given the gloomy market outlook. S&P considers that Rolf's performance continues to be highly dependent on the merits of Mitsubishi Motors Corp. (B+/Stable/--), which, S&P understand, accounts for almost one-half of Rolf Group's retail volumes and for which the group has an exclusive distribution agreement. "The group's continued ability to renew maturing credit lines or put in place alternative funding will be a significant factor in supporting the current rating," said Ms. Stegert. "We could lower the rating if, among other reasons, there are indications that Rolf's liquidity position does not improve or if Rolf fails to renew its exclusive distribution contract with Mitsubishi, which S&P currently consider unlikely." ============= G E O R G I A ============= BANK OF GEORGIA: Moody's Confirms 'D-' Financial Strength Rating ---------------------------------------------------------------- Moody's Investors Service has concluded the review of the ratings of Bank of Georgia and TBC Bank: -- Bank of Georgia: The bank's D- bank financial strength rating was confirmed and its global local currency deposit rating was downgraded to Ba3 from Ba1. The senior unsecured debt rating was also downgraded to Ba3 from Ba2. The outlook on the aforementioned ratings was changed to negative. The bank's long-term foreign currency deposit rating was affirmed at B3 with a negative outlook. All short-term ratings were affirmed at Not-Prime. -- TBC: The bank's D- bank financial strength rating was confirmed and its global local currency deposit rating was downgraded to Ba3 from Ba1. The outlook on both ratings was changed to negative. The bank's long-term foreign currency deposit rating was affirmed at B3 with a negative outlook. All short-term ratings were affirmed at Not-Prime. In concluding the rating review Moody's noted that immediate concerns, particularly with regard to liquidity pressures on the system and which related to the outbreak of military conflict between Georgia and Russia in August 2008 have been alleviated. "In particular, central bank measures in response to the initial shock such as (i) pegging the local currency to the US dollar (ii) setting limits on deposit withdrawals (declaring a bank holiday), and (iii) activating a non-collateralized Georgian lari lending facility were short-lived as the duration of military hostilities was brief and a measure of normality was restored fairly quickly. Meanwhile, the IMF responded quickly in extending a standby facility to support the country's foreign currency reserves and defend the value of the local currency. The country also received substantial grants particularly from the US. International financial aid was instrumental in restoring confidence and maintaining financial stability particularly following the October 22 EU -- World Bank conference in Brussels, at which time over US$4.5 billion was pledged to aid infrastructure reconstruction and social assistance in Georgia," says Stathis Kyriakides, a Limassol-based Moody's Assistant Vice President - Analyst. Easing of immediate concerns notwithstanding, the negative outlook on the BFSRs of Bank of Georgia and TBC reflects expectations of increasing pressure on asset quality, partly as a result of the August 2008 military conflict with the Russian Federation. More importantly, the negative outlook reflects the projected sharp deceleration of Georgia's economic growth during 2009 as the global economic crisis takes its toll on the country's main trading partners, sharply decreases foreign direct investment and impacts remittance from the Georgian Diaspora. The negative outlook also reflects increasing dependence on foreign institutional funding and tight liquidity indicators at both banks. Given the systemic nature of both the short-lived crisis that followed the military conflict with Russia as well as the risks arising from the effects of the global economic crisis, Moody's has taken the view that the local currency ratings of Bank of Georgia and TBC need to be more closely aligned with the government's capacity to service local currency obligations. This view is supported by the fact that Georgia's financial system has -- in recent months -- come to rely on support provided directly or indirectly by the government. This would include funding linked to pledged foreign aid, liquidity (and foreign exchange) support on the back of IMF standby facilities, as well as other development agency and/or third-party bank-funding granted with the presumption of international aid. Consequently, although Moody's assesses that the probability that the country's two largest banks (Bank of Georgia and TBC) will receive systemic support in the event of a crisis remains very high, this does not produce an uplift on their respective global local currency deposit ratings as the assessment of the government's capacity to service debt obligations is lower than each bank's intrinsic financial strength rating -- thus causing each bank's GLC deposit ratings to be downgraded to their respective baseline credit assessment. Similarly, Bank of Georgia's senior unsecured debt rating does not receive any uplift and thus reflects the bank's intrinsic financial strength. Moody's previous rating action on Bank of Georgia was implemented on August 12, 2008, when the bank's D- BFSR and Ba1 long-term local currency deposit ratings were placed on review for a possible downgrade, and the outlook on the bank's B3 foreign currency deposit and Ba2 senior unsecured debt ratings was changed to negative from stable. Moody's previous rating action on TBC bank was implemented on August 12, 2008, when the bank's D- BFSR, Ba1 long-term local currency deposit ratings were placed on review for a possible downgrade, and the outlook on the bank's B3 foreign currency deposit rating was changed to negative from stable. Headquartered in Tbilisi, Bank of Georgia had total assets of US$1.9 billion at the end of 2007. Headquartered in Tbilisi, TBC Bank had total assets of US$1.1 billion at the end of 2007. TBC BANK: Moody's Confirms 'D-' Financial Strength Rating --------------------------------------------------------- Moody's Investors Service has concluded the review of the ratings of Bank of Georgia and TBC Bank: -- Bank of Georgia: The bank's D- bank financial strength rating was confirmed and its global local currency deposit rating was downgraded to Ba3 from Ba1. The senior unsecured debt rating was also downgraded to Ba3 from Ba2. The outlook on the aforementioned ratings was changed to negative. The bank's long-term foreign currency deposit rating was affirmed at B3 with a negative outlook. All short-term ratings were affirmed at Not-Prime. -- TBC: The bank's D- bank financial strength rating was confirmed and its global local currency deposit rating was downgraded to Ba3 from Ba1. The outlook on both ratings was changed to negative. The bank's long-term foreign currency deposit rating was affirmed at B3 with a negative outlook. All short-term ratings were affirmed at Not-Prime. In concluding the rating review Moody's noted that immediate concerns, particularly with regard to liquidity pressures on the system and which related to the outbreak of military conflict between Georgia and Russia in August 2008 have been alleviated. "In particular, central bank measures in response to the initial shock such as (i) pegging the local currency to the US dollar (ii) setting limits on deposit withdrawals (declaring a bank holiday), and (iii) activating a non-collateralized Georgian lari lending facility were short-lived as the duration of military hostilities was brief and a measure of normality was restored fairly quickly. Meanwhile, the IMF responded quickly in extending a standby facility to support the country's foreign currency reserves and defend the value of the local currency. The country also received substantial grants particularly from the US. International financial aid was instrumental in restoring confidence and maintaining financial stability particularly following the October 22 EU -- World Bank conference in Brussels, at which time over US$4.5 billion was pledged to aid infrastructure reconstruction and social assistance in Georgia," says Stathis Kyriakides, a Limassol-based Moody's Assistant Vice President - Analyst. Easing of immediate concerns notwithstanding, the negative outlook on the BFSRs of Bank of Georgia and TBC reflects expectations of increasing pressure on asset quality, partly as a result of the August 2008 military conflict with the Russian Federation. More importantly, the negative outlook reflects the projected sharp deceleration of Georgia's economic growth during 2009 as the global economic crisis takes its toll on the country's main trading partners, sharply decreases foreign direct investment and impacts remittance from the Georgian Diaspora. The negative outlook also reflects increasing dependence on foreign institutional funding and tight liquidity indicators at both banks. Given the systemic nature of both the short-lived crisis that followed the military conflict with Russia as well as the risks arising from the effects of the global economic crisis, Moody's has taken the view that the local currency ratings of Bank of Georgia and TBC need to be more closely aligned with the government's capacity to service local currency obligations. This view is supported by the fact that Georgia's financial system has -- in recent months -- come to rely on support provided directly or indirectly by the government. This would include funding linked to pledged foreign aid, liquidity (and foreign exchange) support on the back of IMF standby facilities, as well as other development agency and/or third-party bank-funding granted with the presumption of international aid. Consequently, although Moody's assesses that the probability that the country's two largest banks (Bank of Georgia and TBC) will receive systemic support in the event of a crisis remains very high, this does not produce an uplift on their respective global local currency deposit ratings as the assessment of the government's capacity to service debt obligations is lower than each bank's intrinsic financial strength rating -- thus causing each bank's GLC deposit ratings to be downgraded to their respective baseline credit assessment. Similarly, Bank of Georgia's senior unsecured debt rating does not receive any uplift and thus reflects the bank's intrinsic financial strength. Moody's previous rating action on Bank of Georgia was implemented on August 12, 2008, when the bank's D- BFSR and Ba1 long-term local currency deposit ratings were placed on review for a possible downgrade, and the outlook on the bank's B3 foreign currency deposit and Ba2 senior unsecured debt ratings was changed to negative from stable. Moody's previous rating action on TBC bank was implemented on August 12, 2008, when the bank's D- BFSR, Ba1 long-term local currency deposit ratings were placed on review for a possible downgrade, and the outlook on the bank's B3 foreign currency deposit rating was changed to negative from stable. Headquartered in Tbilisi, Bank of Georgia had total assets of US$1.9 billion at the end of 2007. Headquartered in Tbilisi, TBC Bank had total assets of US$1.1 billion at the end of 2007. ============= G E R M A N Y ============= CLEEVE TECHNOLOGY: Claims Registration Period Ends March 25 ----------------------------------------------------------- Creditors of Cleeve Technology GmbH have until March 25, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on May 28, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Koenigstein/Ts. Area 205 Law Courts Castle Way 9 61462 Koenigstein/Ts. Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Arno Wolf Minnholzweg 2b 61476 Kronberg Germany Tel: 06173-7834-0 Fax: 06173-7834-149 The District Court opened bankruptcy proceedings against the company on Feb. 24, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cleeve Technology GmbH Attn: Klaus Geschwandtner, Manager Masurenweg 11 65817 Eppstein Germany DELTAPLAN GMBH: Claims Registration Period Ends March 26 -------------------------------------------------------- Creditors of Deltaplan GmbH have until March 26, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on April 20, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Munich Meeting Room 101 Infanteriestr. 5 80097 Munich Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Hans von Gleichenstein Rottmannstr. 11a 80333 Munich Germany Tel: 089/5427300 Fax: 089/54273015 The District Court opened bankruptcy proceedings against the company on Feb. 19, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Deltaplan GmbH Attn: Rolf Willenbrinck, Manager Ganslerweg 18 82041 Oberhaching Germany EUROPEAN SHIPPING: Claims Registration Period Ends April 1 ---------------------------------------------------------- Creditors of European Shipping (Spedition) GmbH have until April 1, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on May 13, 2009, at which time the insolvency manager will present her first report. The meeting of creditors will be held at: The District Court of Rostock Hall 330 Zochstrasse 18057 Rostock Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrike Hoge-Peters Rosa-Luxemburg-Strasse 8 18055 Rostock Germany The District Court opened bankruptcy proceedings against the company on Feb. 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: European Shipping (Spedition) GmbH Attn: Burkhard F. Manig, Manager Am Skandinavienkai 15 18147 Rostock Germany MATAU IMPORT: Claims Registration Period Ends March 26 ------------------------------------------------------ Creditors of Matau Import und Export GmbH have until March 26, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on April 16, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Offenbach am Main Hall 166N First Floor Kaiserstrasse 16-18 63065 Offenbach am Main Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Hans Joerg Laudenbach Nibelungenplatz 3 60318 Frankfurt Germany Tel: 069 / 90 55 99 3 Fax: 069 / 90 55 99 55 The District Court opened bankruptcy proceedings against the company on Feb. 26, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Matau Import und Export GmbH Carl-Zeiss-Strasse 39 63322 Roedermark Germany Attn: Lutz Quauke, Manager Goldammerweg 8 63322 Roedermark Germany O.S.P. SECURITY: Claims Registration Period Ends March 31 --------------------------------------------------------- Creditors of O.S.P. Security und Service GmbH have until March 31, 2009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on April 30, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Magdeburg Hall 13 Breiter Weg 203 - 206 39104 Magdeburg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ruediger Bauch Schleinufer 11 39104 Magdeburg Germany Tel: 0391/5354-0 Fax: 0391/5354-100 E-Mail: RBauch@schubra.de The District Court opened bankruptcy proceedings against the company on Feb. 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: O.S.P. Security und Service GmbH Alt Fermersleben 36 39122 Magdeburg Germany Attn: Gabriele Hellmann, Manager Otto-von-Guericke-Str. 57 39104 Magdeburg Germany VAC FINANZIERUNG: Weak Performance Cues Moody's Junk Rating ----------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating and probability of default rating of Vac Finanzierung GmbH, the ultimate holding company of Vacuumschmelze GmbH & Co. KG, to Caa1 from B3 as well as the rating of its senior secured notes to Caa2 from Caa1. The ratings have been placed under review for possible downgrade. "The downgrade of the CFR to Caa1 reflects VAC's accelerated weakening of operating performance over the past few weeks triggered by lower demand for magnetic products in the majority of business segments which in Moody's view is likely to continue in the near term as a result of an unprecedented macroeconomic downturn," says Christian Hendker, a Moody's Assistant Vice President and lead analyst for VAC. "Moody's has also taken into account VAC's highly leveraged capital structure with debt to EBITDA estimated above 6.0x in 2008 that leaves limited headroom for performance volatility and the expectation that, as a result of the current underperformance which could sustain for an extended period, VAC is unlikely to restore its financial leverage back towards the requirements of the single B rating category in the near term as previously expected." The rating review will focus on VAC's 1) ability to regain a sufficient headroom under financial covenants of the senior credit facility but also on 2) the ability and timing in restoring profitability and the robustness of VAC's business model to continuously generate free cash flows which is essential to preserve a sufficient liquidity position. Moody's recognizes that VAC has still a solid liquidity position, with EUR22 million of on-balance sheet cash per the end of December 2008, and sufficient availability under a EUR40 million liquidity facility. While the company has an extended debt maturity profile, a protracted period of weak operating performance resulting in negative free cash flows could result in an eroding liquidity position, particularly as the company has annual debt repayment requirements of around EUR7 million. The ratings could be confirmed within the next weeks, provided that VAC regains a sufficient headroom under financial covenants to withstand an extended period of cyclical weakness but also if there is a likelihood that the company continues to operate within leverage parameters required for the Caa1 rating category. VAC's ratings reflect the group's solid market positioning as an integrated manufacturer of magnetic products with a broad customer diversification across various industries. The company has longstanding and sole supplier relationships with key customers and good segmental diversification with solid end-user diversity. Recently, however, the company's solid diversification has not sheltered the company from a simultaneous demand drop in almost all end-customer industries which is critical given the small absolute scale of the company, evidenced by revenues of around EUR342 million in 2007. While Moody's considers the company's continuous implementation of cost management initiatives, these measures may not be sufficient to protect VAC's profitability levels going forward. The rating is particularly constrained by VAC's highly leveraged capital structure, which is not sustainable in an extended macroeconomic downturn scenario. Downgrades: Issuer: VAC Finanzierung GmbH -- Probability of Default Rating, Downgraded to Caa1 from B3 -- Corporate Family Rating, Downgraded to Caa1 from B3 -- Senior Secured Regular Bond/Debenture, Downgraded to Caa2 from Caa1 (LGD 4, 64% changed from LGD 4, 65%) Outlook Actions: Issuer: VAC Finanzierung GmbH -- Outlook, Changed To Rating Under Review From Negative The last rating action was implemented on November 14, 2008, when Moody's downgraded VAC's CFR to B3 from B2. Headquartered in Hanau, Germany, Vacuumschmelze GmbH & Co KG has a solid and well-established market position in the design and manufacturing of magnetic products. In 2007, the company generated revenues of EUR342 million. WUNDI GMBH: Claims Registration Period Ends March 27 ---------------------------------------------------- Creditors of Wundi GmbH Chemisch Technische Erzeugnisse have until March 27, 20009, to register their claims with court-appointed insolvency manager. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on April 24, 2009, at which time the insolvency manager will present his first report. The meeting of creditors will be held at: The District Court of Arnsberg Meeting Room 328 Eichholzstr. 4 59821 Arnsberg Germany Claims set out in the insolvency manager's report will be verified by the court during this meeting. Creditors may also constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Manfred Gottschalk Wagenbergstr. 2 59759 Arnsberg Germany The District Court opened bankruptcy proceedings against the company on Feb. 27, 2009. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wundi GmbH Chemisch Technische Erzeugnisse Attn: Harald Kutzborra, Manager Zum Breiten Ohl 28 59846 Sundern Germany =========== G R E E C E =========== TITAN CEMENT: S&P Affirms Corporate Credit Ratings at 'BB+/B' ------------------------------------------------------------- Standard & Poor's Ratings Services said that it has affirmed its long- and short-term corporate credit ratings on Greek cement manufacturer Titan Cement Co. S.A. at 'BB+/B' and removed them from CreditWatch with negative implications, where they were originally placed on Oct. 27, 2008. The outlook is stable. The affirmation is based on S&P's belief that, after a sharp drop seen in 2008, credit metrics are likely to further erode in 2009, but to a much more moderate extent and toward levels that S&P anticipate at this stage to be still in line with the ratings. This, combined with S&P's view that liquidity is adequate and that metrics should start recovering in 2010 or 2011, is likely to help stabilize the ratings at the current levels. "At this stage, S&P anticipate that funds from operations should drop this year, but S&P think that discretionary cash flows should turn positive and allow some debt reduction," said Standard & Poor's credit analyst Xavier Buffon. Overall, S&P therefore anticipates that the fully adjusted ratio of funds from operations to debt could be eroded by a couple of percentage points in 2009 from the 24% posted at year-end 2008. In addition, S&P thinks that this ratio could more sharply rebound in 2010 or 2011, thanks to the beneficial impact of the new lines under construction in Egypt and Albania, and lower capital outlays once these facilities are completed. This assumes in particular that these latter two markets will not suffer significant price or volume disruptions. The short-term rating is 'B'. S&P believes that liquidity is adequate, and that headroom under financial covenants has improved thanks to management's renegotiation of covenants recently. The stable outlook reflects S&P's view that credit metrics will be eroded in 2009 but should remain at levels likely still consistent with the ratings and may stage a significant rebound in 2010 or 2011. Although S&P anticipates that FFO will likely drop again this year, S&P thinks that discretionary cash flows should be positive, and allow some debt reduction. This assumes in particular that prices continue to hold up well overall in key markets, and that benefits from new lines in Egypt and Albania would not be wiped out by volume or price disruptions in these markets. S&P could revise S&P's outlook to negative if S&P came to think that FFO were likely to recede more than currently assumed in 2009, or that it could further decline after 2009; this could occur if Egypt or Albania proved less supportive than S&P expects at this stage, or if Greece, the U.S., or Bulgaria experience greater stress than factored in at this stage. Ratings pressure could also stem from a sharper contraction than expected currently under financial covenant headroom, in the absence of counterbalancing measures being taken. Given S&P's assessment of a satisfactory business profile, S&P thinks that ratings upside could exist in the future, if the fully adjusted ratio of FFO to debt were to durably rebound to above the mid 20s. WIND HELLAS: Liquidity Concerns Cue Fitch's Negative Watch ---------------------------------------------------------- Fitch Ratings has placed the ratings of Greek mobile operator, WIND Hellas Telecommunications S.A. (WIND Hellas, rated 'B-' ((B minus)), on Rating Watch Negative due to liquidity concerns, which are mainly related to seasonal working capital outflows in H109. A full rating breakdown is provided at the end of this comment. Fitch believes that WIND Hellas's liquidity requirements may peak in H109 due to working capital seasonality, timing of cash interest payments and capital expenditures. This, combined with a negative outlook on operating performance in 2009, caused by the deterioration in the fundamentals of the Greek mobile market and the anticipated effects of cuts in mobile termination rates, explains the application of the RWN to the company's ratings. Consequently, the loss-making Tellas fixed-line business will be no longer supported to the same capacity by the mobile business in the future. The reduction in MTR by 2.5 Euro cents from January 2009, and continuing pressure on the prepaid segment Average Revenue per User "ARPU"s, due to Greek economic conditions, will place additional downward pressure on operating margins in 2009. The agency understands that the company has a contingency plan in place to scale back capex and operating expenditures for the mobile business and expects the rate of cash burn to halve to EUR40 million in 2009 from 2008 due to these actions, and lower cash taxes as a result of the merger with Tellas. However, the company's existing cash balance of EUR37 million at YE08 and the undrawn Revolving Credit Facility amount of EUR50 million will still result in tight liquidity in H109 in Fitch's opinion. The company may be forced to tap most of the RCF during H109 leaving a small margin for error for the remainder of the year. Fitch also notes the lack of explicit commitment for cash equity support from the parent company but believes that Weather Investments, the parent company, sees WIND Hellas as a strategic asset and remains committed to its Greek operations in the long- term. Fitch aims to resolve the RWN by or before August 2009 and cautions that any liquidity crunch coupled with a lack of parental support will likely result in a downgrade of at least one notch. The agency estimates that net cash-pay leverage could rise as high as 7-7.5x EBITDA by YE09, and higher-than-expected leverage metrics could also place further negative pressure on the rating. The rating actions are: -- WIND Hellas Telecommunications S.A. Long-term Issuer Default Rating: 'B-' (B minus); placed on Rating Watch Negative -- WIND Hellas Telecommunications S.A. Short-term IDR: 'B'; placed on RWN -- Hellas Telecommunications (Luxembourg) V senior revolving credit facility: 'B'/'RR3'; placed on RWN -- Hellas Telecommunications (Luxembourg) V senior secured floating-rate notes due 2012: 'B'/'RR3'; placed on RWN -- Hellas Telecommunications (Luxembourg) III senior notes due 2013: 'CCC'/'RR5'; placed on RWN -- Hellas Telecommunications (Luxembourg) II subordinated floating-rate notes due 2015: 'CC'/'RR6'; placed on RWN ============= I R E L A N D ============= PSION SYNTHETIC: Fitch Cuts Ratings on 4 Classes of Notes to Low-B ------------------------------------------------------------------ Fitch Ratings has downgraded five classes of PSION Synthetic CDO 1 Plc's notes, removed the five notes from Rating Watch Negative (RWN), and assigned Outlooks to the notes: -- US$20 million Class A (ISIN XS0239016503): downgraded to 'BBB-' (BBB minus) from 'AAA'; removed from RWN; assigned a Stable Outlook -- US$13 million Class B (ISIN XS0239017147): downgraded to 'BB' from 'AA'; removed from RWN; assigned a Stable Outlook -- US$8 million Class C (ISIN XS0239017576): downgraded to 'BB' from 'A'; removed from RWN; assigned a Stable Outlook -- US$10 million Class D (ISIN XS0239017733): downgraded to 'B' from 'BBB'; removed from RWN; assigned a Stable Outlook -- US$16 million Class E (ISIN XS0239017907): downgraded to 'B-' (B minus) from 'BB'; removed from RWN; assigned a Negative Outlook The downgrades reflect Fitch's view on the credit risk of the rated tranches following the release of the agency's revised Structured Finance CDO rating criteria on December 16, 2008, the large sovereign and emerging market exposure, as well as credit deterioration to the collateral pool that has occurred since the last review. The application of the new SF CDO rating criteria incorporates Fitch's view on industry and vintage concentration risks and the likelihood of low recoveries upon default, particularly for thin tranches. Although the application of the new criteria has significantly impacted the transaction's ratings, credit deterioration in the portfolio coupled with very little subordination has particularly affected the junior tranches. As per the trustee report dated December 18, 2008, the portfolio contains 57 assets from 50 obligors, with the largest exposure accounting for approximately 5% of the outstanding portfolio amount, and the three largest obligors accounting for 12% of the outstanding portfolio amount. The portfolio constitutes a mix of structured finance assets (32% of the portfolio), sovereign and municipal bonds (60%) and corporate assets (8%). All the structured finance assets are U.S. ABS assets backed by student loans and are primarily from 2005 and 2006 vintages. The largest country concentrations are the United States and Italy making up 56% and 12% of the portfolio respectively. The portfolio has approximately 30% emerging market exposure. In conducting its analysis, Fitch makes a three notch downward adjustment for any names on RWN for default analysis in its Portfolio Credit Model. On an adjusted basis approximately 4% of the assets are treated as sub-investment grade. The weighted average portfolio quality is 'BBB+'. Approximately 4% of the portfolio is on RWN and 16% of the portfolio has a Negative Outlook. Currently, none of the assets are rated 'CCC+' and below. While the downgrade of the class A, B, and C notes is driven by Fitch's revised criteria, the downgrade of the class D and E notes is more linked to the transaction's actual performance. Approximately 4% of the assets are now sub investment grade compared to none at last review in October 2007. Furthermore, given the current macroeconomic climate, Fitch expects further negative portfolio migration which could result in a higher percentage of non-investment grade assets. Given the performance and Fitch's outlook, the credit enhancement levels of 4.2% and 2.5% are not sufficient to justify the previous 'BBB' and 'BB' ratings of the class D and E notes. The negative outlook assigned to the class E notes reflects Fitch's long term view that this class could come under negative rating pressure over the next one to two years. The transaction is a partially funded synthetic securitization of municipal securities and sovereign entities. The original portfolio amount was US$1 billion and is now US$951 million. In December 2005, PSION, a limited liability company incorporated in Ireland, issued US$67 million of rated notes (classes A to E). PSION then sold DEPFA Bank plc protection on the reference portfolio via a credit default swap agreement. DEPFA, in its role as swap counterparty, has an option to call the notes in December 2008 and on every payment date thereafter provided that the liquidation proceeds of the eligible investments are sufficient to ensure that the notes are redeemed at par plus the accrued interest. WATERFORD WEDGWOOD: Fitch Affirms and Withdraws 'D' Issuer Rating ----------------------------------------------------------------- Fitch Ratings has affirmed and simultaneously withdrawn Waterford Wedgwood plc's ratings: -- Long-term Issuer Default Rating affirmed at 'D' -- Short-term IDR affirmed at 'D' -- US$60 million senior secured term loan rating is rated 'CC'/'RR3'; Rating Watch Negative -- EUR166 million mezzanine notes, due 2010, affirmed at 'C'/'RR6' The withdrawal of Waterford's ratings follows the company's announcement that certain UK and Irish assets of the group, along with certain overseas assets and businesses, have been sold to a newly formed company controlled by KPS Capital Partners LP, a New York-based private equity company. Completion is conditional on customary closing conditions and is expected to take place in March. As the transaction has been conducted privately, the agency does not expect to receive any material financial information to enable the continued monitoring of Waterford's ratings, including the Recovery Ratings assigned to the individual issues. Fitch will no longer provide public ratings or analytical coverage of Waterford Wedgwood. =================== K A Z A K H S T A N =================== AKSU 2004 LLP: Creditors Must File Claims by April 10 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Aksu 2004 insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Kenesary St. 46-38 Astana Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Akmola Gorky St. 37 Kokshetau Akmola Kazakhstan ASTYK AVIA: Creditors Must File Claims by April 10 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Astyk Avia insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Kenesary St. 46-38 Astana Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Akmola Gorky St. 37 Kokshetau Akmola Kazakhstan EXPO LLP: Creditors Must File Claims by April 10 ------------------------------------------------ LLP Grain Company Expo insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Maulenov St. 21 Kostanai Kazakhstan GUN-2 LLP: Creditors Must File Claims by April 10 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Gun-2 insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Tajybaev St. 23-59 Kyzylorda Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kyzylorda Aiteke bi St. 29 120014 Kyzylorda Kyzylorda Kazakhstan KUNDYKOL LLP: Creditors Must File Claims by April 10 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Kundykol insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Djambulskaya St. 6 Pavlodar Pavlodar Kazakhstan NEXUS LLP: Creditors Must File Claims by April 10 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Company Nexus insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: Gogol St. 177a Kostanai Kazakhstan The Court is located at: The Specialized Inter-Regional Economic Court of Kostanai Baitursynov St. 70 Kostanai Kazakhstan NURHAN LLP: Creditors Must File Claims by April 10 -------------------------------------------------- The Specialized Inter-Regional Economic Court of Karaganda has declared LLP Nurhan insolvent. Creditors have until April 10, 2009, to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Karaganda Alalykin St. 9 Karaganda Kazakhstan SMART MASTER: Creditors Must File Claims by April 10 ---------------------------------------------------- LLP Smart Master Company has declared insolvency. Creditors have until April 10, 2009, to submit written proofs of claim to: Temirlanovskoye Highway Abaisky district 160050 Shymkent South Kazakhstan Kazakhstan STYLE STROY: Creditors Must File Claims by April 10 --------------------------------------------------- LLP Style Stroy has declared insolvency. Creditors have until April 10, 2009, to submit written proofs of claim to: Deyev St. 7a Jezkazgan Karaganda Kazakhstan TRISTAN OIL: Faces Regulatory Woes Over TNG's Change of Ownership ----------------------------------------------------------------- Tristan Oil Ltd. on Wednesday, March 4, 2009, announced that on February 27, 2009 the Ministry of Energy and Mineral Resources of Kazakhstan submitted a formal notification to Tolkynneftegaz LLP informing TNG that the transfer of ownership of TNG in 2003 violated the Government of Kazakhstan's pre-emptive rights. The MEMR has requested that another application regarding the transfer of ownership be submitted within one month from the date of the notification in order to afford the State of Kazakhstan the opportunity to exercise or waive its pre-emptive rights in connection with TNG's change of ownership in 2003. TNG will submit the application within the requested time period. While TNG strongly disagrees with the MEMR's position, it will continue to cooperate with the MEMR in an attempt to resolve this matter. The formal notification provided that any failure by TNG to resubmit the application would result in the MEMR cancelling TNG's subsoil use contract with respect to the Tolkyn field and Tabyl block. On February 2, 2009, the Department for Fighting Economic Offenses and Corruption of the Mangistau region of Kazakhstan submitted a letter to Tolkynneftegaz LLP informing TNG that it is the subject of a criminal investigation. The letter stated that the criminal investigation relates to two gas pipelines and one condensate pipeline built by TNG to transport its gas and condensate from the Company's gas processing facility to the delivery point at the Central Asia Center pipeline for gas and the Opornaya condensate storage facilities for condensate but did not provide further details. TNG has requested that the Department provide details regarding the basis for the investigation. TNG is cooperating fully with the investigation. TNG is unable to assess at this stage any potential consequences should TNG fail to obtain a favorable resolution with respect to this matter. With respect to the similar criminal investigation by the Department of KPM, which the Company reported on in a press release dated January 1, 2009, no material developments have occurred. According to Moody's Investors Service, Tristan –- http://www.tristanoil.com/–- is a special purpose vehicle domiciled in the British Virgin Islands created for the sole purpose of issuing secured notes to finance a loan to two oil and gas companies, KPM and TNG, organized under the laws of Kazakhstan. * * * As reported in the TCR-Europe on Jan. 16, 2009, Fitch Ratings placed Tristan Oil Ltd.'s Long-term foreign currency Issuer Default Rating and senior unsecured rating of 'B+' on Rating Watch Negative. Tristan's Recovery rating is 'RR4'. TRISTAN OIL: Moody's Junks Corporate Family Rating from 'B3' ------------------------------------------------------------ Moody's Investors Service has downgraded to Caa2 the B3 Corporate Family and Probability of Default ratings of Tristan Oil Ltd as well as the B3 rating of its US$300 million and US$120 million Senior Secured Notes maturing 2012. The outlook on the ratings has been changed to negative. This rating action concludes Moody's review for downgrade of Tristan's ratings. The rating action reflects the recent developments in respect to the status of resolution of a number of regulatory claims. It follows Tristan's announcement on March 4, 2009, that on February 27, 2009 the Ministry of Energy and Mineral Resources of Kazakhstan submitted a formal notification to the company's key operating subsidiary Tolkynneftegaz LLP informing TNG that the transfer of ownership of TNG in 2003 violated the Government of Kazakhstan's pre-emptive rights. The MEMR has requested that another application regarding the transfer of ownership be submitted by March 27, 2009, to allow the state the opportunity to exercise or waive its pre-emptive rights in connection with TNG's change of ownership in 2003. The formal notification also provided that any failure by TNG to resubmit the application would result in the MEMR canceling TNG's subsoil use contract with respect to the Tolkyn field and Tabyl block. In addition, from the same announcement Moody's became aware that prior to these events, on February 2, 2009, the Department for Fighting Economic Offenses and Corruption of the Mangistau region of Kazakhstan submitted a letter to TNG informing TNG that it is the subject of a criminal investigation (a similar letter has previously been submitted with respect to the company's other subsidiary KPM). The letter stated that the criminal investigation relates to two gas pipelines and one condensate pipeline built by TNG to transport its gas and condensate from the Company's gas processing facility to the delivery point at the Central Asia Center pipeline for gas and the Opornaya condensate storage facilities for condensate but did not provide further details. TNG has requested that the Department provide details regarding the basis for the investigation. TNG intends to cooperate with the authorities and will likely resubmit the waiver application, within the requested time period. TNG claims it is unable to assess at this stage any potential consequences should TNG fail to obtain a favorable resolution with respect to the matter. The company also stated that no progress has been achieved in respect to the criminal investigation opened with respect to KPM earlier this year. The recent developments signify the heightened risk of an unfavorable resolution of the disputes, hence a considerably higher probability of Tristan defaulting on its debt obligations, which in Moody's view could occur either as a result of the change of control (should the entity be sold to the Kazakh state or a third party), or inability to operate normally in view of the potential license revocation and/or considerably weakened business fundamentals. The ratings could also be negatively impacted by liquidity considerations, should the company be requested to pay a sizable fine to settle the claims. Among other factors, the rating downgrade reflects the poor visibility in respect to potential outcomes at this stage, as well as the lack of information that would allow Moody's to draw conclusions regarding the true nature of the disputes, their legitimacy under the Kazakh law and potential consequences. The outlook on the ratings takes into account Moody's view that the resolution of the dispute might take significantly longer than was originally anticipated. Moody's previous rating action on Tristan took place on February 18, 2009, when Tristan's ratings were downgraded to B3 from B2 leaving the ratings on review for further downgrade, following protracted delays in resolving the claims. Tristan is a special purpose vehicle domiciled in the British Virgin Islands created for the sole purpose of issuing secured notes to finance a loan to two oil and gas companies, KPM and TNG, organized under the laws of Kazakhstan. The guarantors of the notes, KPM and TNG are engaged in the exploration and development of two oil and gas fields and in the production of oil, condensate and gas in the Pre Caspian basin of Western Kazakhstan. All companies directly or indirectly are owned by Mr. Stati, a Moldovan citizen, and certain members of his family. TRITON ASIA: Creditors Must File Claims by April 10 --------------------------------------------------- LLP Triton Asia Ltd. has declared insolvency. Creditors have until April 10, 2009, to submit written proofs of claim to: Jambyl St. 111 Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== BEST TRADE: Creditors Must File Claims by March 20 -------------------------------------------------- LLC Best Trade Ltd. has declared insolvency. Creditors have until March 20, 2009, to submit written proofs of claim. The company can be reached at (0-777) 73-03-09. =================== L U X E M B O U R G =================== REDWOOD: Moody's Reviews Rating on EUR11.7MM Notes for Downgrade ---------------------------------------------------------------- Moody's Investors Service announced it has put on review for possible downgrade its ratings of two classes of notes issued by Redwood CBO S.A. The transaction is a managed cash CDO referencing sub-investment grade corporate bonds and sovereign debt. The rating actions are a response to credit deterioration in the underlying portfolio due to corporate name defaults and general corporate deterioration. This action is also related to the announcement that Moody's put all but senior-most CLO tranches on review for downgrade on March 4, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for cash flow CLOs as described in Moody's publications below: -- Moody's Approach to Rating Collateralized Loan Obligations (December 2008) -- Moody's Updates Key Assumptions for Rating CLOs (February 2009) The rating actions are: Redwood CBO S.A.: (1) EUR35,300,000 Class 2 Fixed Rate Notes due 2011 -- Current Rating: A2, on review for possible downgrade -- Prior Rating: A2 -- Prior Rating Date: 3 August 2001 (2) EUR11,675,000 Mezzanine Fixed Rate Notes due 2011 -- Current Rating: Ba1, on review for possible downgrade -- Prior Rating: Ba1 -- Prior Rating Date: 3 August 2001 ===================== N E T H E R L A N D S ===================== FIXED-LINK BV: Fitch Downgrades Rating on Class C2 Notes to 'D' --------------------------------------------------------------- Fitch Ratings has withdrawn the "AAA" ratings on the Class G1, G2, A1, A2, B1 and B2 notes issued by Fixed-Link B.V., and downgraded to a "D" rating the previously "CCC" rated Class C2 notes. The action follows the February 2009 fast-pay mechanism, which used all available collateral to repay the G, A, B and C notes sequentially at par. Fitch understands that the Class G1, G2, A1, A2, B1 and B2 notes principal was repaid in full on February 2, 2009, whereas the Class C notes suffered a EUR28.2 million loss, equivalent to an 80% recovery rate, in line with the August 2007 Fitch estimate of a DR2 recovery for this class of notes. Since June 2007 the GBP916 million cash proceeds FLF received from its impaired Eurotunnel debt holding were invested in "AAA" rated investments, as required by the transaction documents covenants. Due to premia requirements, the notes could not be prepaid immediately, but had to wait until February 2009. The cash flows, net of costs, and the re-investment rates between June 2007 and February 2009 were sufficient to repay the Class G, A and B notes in full, but determined an event of default on the Class C notes, whose principal was only partially repaid; the corresponding "D" rating reflects these circumstances (for more information on Fitch's new rating definitions, please refer to the criteria report titled "Revisions of Rating Definitions", dated March 3, 2009, available at www.fitchratings.com), and will be withdrawn in 30 days. On February 25, 2009 The Class C2 noteholders agreed on collapsing the structure, thus unwinding the bond issuance. The full list of FLF1 notes is updated: -- GBP200 million Class A1 notes due 2025, paid-in-full -- EUR103 million Class A2 notes due 2025, paid-in-full -- GBP0.05 million Class B1 notes due 2025, paid-in-full -- EUR135 million Class B2 notes due 2025, paid-in-full -- EUR142 million Class C2 notes due 2025: rating downgraded to 'D' from 'CCC' / 'DR2', EUR28.2 million unpaid principal =========== N O R W A Y =========== GOLDEN OCEAN: Hemen Buys Two-Thirds of Convertible Bond Issue ------------------------------------------------------------- Robert Wright at The Financial Times reports that Golden Ocean Group Ltd has avoided a potential covenant breach after Hemen Holdings Ltd, an investment vehicle of its chief executive John Fredriksen, acquired two thirds of a convertible bond issue whose terms require the Oslo-listed dry bulk shipowner to maintain a market capitalization above a set value. In a March 5 release, Golden Ocean said that Hemen purchased US$165.3 million of nominal amount of the 3.625 % Golden Ocean Group Convertible Bond Issue 2007/2012. The purchase price was 30% plus accrued interest. Settlement date will be March 10, 2009. The FT relates Golden Ocean had said on Wednesday, when Mr. Fredriksen's offer for the bonds was announced, that he intended to change the term. According to the FT, Golden Ocean had warned it could run out of cash this month if bondholders enforced their rights under the bond terms and prevented the company from drawing further on its lending facilities. The FT recalls Tor Olav Trøim, a key aide to Mr. Fredriksen and a director of Golden Ocean, told the FT last week that Mr. Fredriksen was willing to inject fresh capital into Golden Ocean if the problem over the bonds could be resolved. Mr. Fredriksen, the FT discloses, holds a 28.2% stake in Golden Ocean, one of many dry bulk shipowners to have been hit by a combination of a collapse in shipping rates and defaults on long- term contracts. Golden Ocean Group Limited (GOGL), formerly a subsidiary of Frontline Ltd –- http://www.goldenocean.no/– is a company incorporated in Bermuda and listed in Norway. It is principally engaged in dry bulk shipping. It operates a fleet of owned and leased panamax and capesize dry bulk vessels. The Company also trades freight forward agreements for the purpose of managing its exposure to vessel spot market rates and for speculating. It is operational through a number of wholly owned subsidiaries in Liberia, Singapore, Norway and Bermuda. Golden Ocean Group Limited has an office presence in Bermuda, Norway and Singapore. =========== R U S S I A =========== AGRO-STROY-INVEST LLC: Creditors Must File Claims by March 29 ------------------------------------------------------------- Creditors of LLC Agro-Stroy-Invest (TIN 3128061299, PSRN 1073128002705, RVC 312801001) (Construction) have until March 29, 2009, to submit proofs of claims to: A. Zapryagayev Temporary Insolvency Manager Post User Box 12 394038 Voronezh Russia The Arbitration Court of Belgorodskaya will convene at 9:30 a.m. on May 13, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A08–8393/2008–11B. The Debtor can be reached at: LLC Agro-Stroy-Invest Vostochnyy 14 Stary Oskol 309502 Belgorodskaya Russia GRAY LLC: Creditors Must File Claims by March 29 ------------------------------------------------ Creditors of LLC Gray (TIN 5249001386) (Construction) have until March 29, 2009, to submit proofs of claims to: A. Khludentsov Temporary Insolvency Manager Michurinskaya St. 106 392018 Tambov Russia The Arbitration Court of Nizhegorodskaya will convene at 9:00 a.m. on May 28, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A43–27989/2008 27– 188. The Debtor can be reached at: LLC Gray Sitnikova St. 8/26 Dzerzhinsk Russia KIRISHSKIY BIO-CHEMICAL: Creditors Must File Claims by April 28 --------------------------------------------------------------- Creditors of FSUE Kirishskiy Bio-Chemical Plant (TIN 7809000261, PSRN 1024701481122, RVC 770601001) have until April 28, 2009, to submit proofs of claims to: V. Chenskikh Insolvency Manager Apt. 30 Admirala Lazareva St. 27 117042 Moscow Russia The Arbitration Court of Saint-Peterburg commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56–26174/2008. The Debtor can be reached at: FSUE Kirishskiy Bio-Chemical Plant Zuevo shosse 46 km Novaya Ladoga 187126 Glazhevskaya Kirishskiy Leningradskaya Russia NALCHIKSKIY TRIKOTAZH: Claims Filing Ends April 28 -------------------------------------------------- Creditors of LLC Nalchikskiy Trikotazh (Textile Industry) have until April 28, 2009, to submit proofs of claims to: Ye. Shirova Insolvency Manager Tsiolkovskogo St. 7/307 Nalchik Kabardino-Balkaria Russia The Arbitration Court of Kabaldino-Balkaria commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A20–596/2008. The Debtor can be reached at: LLC Nalchikskiy Trikotazh Mal'bakhova St. 9 Nalchik Kabardino-Balkaria Russia NORD-LES LLC: Creditors Must File Claims by March 29 ---------------------------------------------------- Creditors of LLC Nord-Les (Forestry) have until March 29, 2009, to submit proofs of claims to: S. Bondarev Insolvency Manager Sovetskaya St. 97/104 156005 Kostroma Russia The Arbitration Court of Vologodskaya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A13–8510/2008. The Debtor can be reached at: LLC Nord-Les Office 54 Prospect Lunacharskogo 43 Cherepovets 162600 Vologodskaya Russia STROY-TSEM-SERVIS LLC: Creditors Must File Claims by March 29 ------------------------------------------------------------- Creditors of LLC Stroy-Tsem-Servis (TIN 5005044924) (Construction) have until March 29, 2009, to submit proofs of claims to: Z. Ganiyev Temporary Insolvency Manager Office 61 Potapovskiy Pereulok 9/11 101000 Moscow Russia The Arbitration Court of Moscow will convene at 2:00 p.m. on May 13, 2009, to hear bankruptcy supervision procedure. The case is docketed under Case No. A41–27557/08. The Debtor can be reached at: LLC Stroy-Tsem-Servis Pionerskaya St. 4 Voskresensk 140200 Moskovskaya Russia VAGRIUS LLC: Creditors Must File Claims by March 29 --------------------------------------------------- Creditors of LLC Vagrius (TIN 8603089420, PSRN1028600960630) (Construction) have until March 29, 2009, to submit proofs of claims to: I. Glukhovchenko Temporary Insolvency Manager Apt. 6 Mira St. 38 Nizhnevartovsk Khanty-Mansiysk Russia The Arbitration Court of Khanty-Mansiysk commenced bankruptcy supervision procedure. The case is docketed under Case No. A75– 8137/2008. The Debtor can be reached at: LLC Vagrius Chapayeva St. 83a Nizhnevartovsk 628617 Khanty-Mansiysk Russia ZAVOD STANKOKONSTRUKTSIYA: Claims Filing Period Ends April 28 ------------------------------------------------------------- Creditors of OJSC Zavod Stankokonstruktsiya (PSRN 10277005536931) (Machine Tool Building Plant) have until April 28, 2009, to submit proofs of claims to: P .Novikov Insolvency Manager Apt. 267 Building 1 Volzhskiy Blvd. 31 Moscow Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40–29906/08–103–91B. The Debtor can be reached at: OJSC Zavod Stankokonstruktsiya Building 1 Donskaya St. 4 17049 Moscow Russia ZEL-AK-BANK OJSC: Creditors Must File Claims by April 28 -------------------------------------------------------- Creditors of OJSC Zel-AK-Bank Commercial Bank (TIN 7735023046, Registration Number 1813) have until April 28, 2009, to submit proofs of claims to: Investment Insurance Agency Acting as Insolvency Manager Post User Box 48 109052 Moscow Russia Tel: 8-800-200-08-05 The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40—95314/08–86-307B. The Debtor can be reached at: OJSC Zel-AK-Bank Building 1515 Zelenograd 124683 Moscow Russia ZISVALD LLC: Creditors Must File Claims by March 29 --------------------------------------------------- Creditors of LLC Zisvald (TIN 4345024715, PSRN 1034316548914) (Lumbering) have until March 29, 2009, to submit proofs of claims to: A. Kozlov Temporary Insolvency Manager Popova St. 30a 610014 Kirova Russia The Arbitration Court of Kirovskaya commenced bankruptcy supervision procedure. The case is docketed under Case No. A28– 11940/2008–289/24. The Debtor can be reached at: LLC Zisvald Gertsena St. 3 Kirov Russia ========= S P A I N ========= TDA CAM 10: S&P Downgrades Rating on Class C Notes to 'B' --------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on the class B and C notes issued by TDA CAM 10, Fondo de Titulizacion de Activos. The ratings on the class A and D notes remain unaffected. The rating actions follow a full credit and cash flow analysis of the most recent transaction information that S&P has received. S&P's analysis showed that the credit enhancement available for TDA CAM 10's class B and C notes is insufficient to maintain the current ratings, due to increased default and loss assumptions. At 7.62% of the current portfolio, the level of 90+ day delinquencies including defaulted loans is well above the average for other Spanish residential mortgage-backed securities transactions that S&P rate with a similar seasoning. This level represents a quadrupling of severe delinquencies over the past six months. The transaction features a structural mechanism that traps excess spread to provide for defaults. Defaults in this transaction are defined as arrears greater than 12 months. Furthermore, when the cumulative default rate in this transaction reaches a certain percentage of the initial collateral balance, the priority of payments changed to stop interest payments to the related class of notes. According to the last investor report, the level of cumulative defaults as a percentage of the closing collateral balance was 0.26%. If all loans currently in arrears for more than 90 days were to ultimately become 12 months past due, cumulative defaults would rise to a level of 7.5%. The trigger level for deferral of interest amounts is set at 6.75% for the class C notes. Recent performance data combined with the portfolio characteristics suggest that delinquencies and defaults will continue to increase over the next few quarters. The ratings on the class A notes are unaffected by the actions but remain on CreditWatch negative, where they were placed on Nov. 27, 2008, due to exposure to an 'A-2' rated derivative counterparty. Remedial actions have now been proposed and S&P is currently in the process of reviewing whether these actions are in line with S&P's counterparty criteria. The notes, issued in December 2007, are backed by a portfolio of residential mortgage loans secured over properties in Spain. The loans were originated and are serviced by Caja de Ahorros del Mediterraneo. Ratings List TDA CAM 10, Fondo de Titulizacion de Activos EUR1,423.5 Million Residential Mortgage-Backed Floating-Rate Notes Rating Lowered and Removed from CreditWatch Negative Rating ------ Class To From ----- -- ---- B BBB- A-/Watch Neg C B BBB-/Watch Neg Ratings Unaffected Class Rating ----- ------ A1 AAA/Watch Neg A2 AAA/Watch Neg A3 AAA/Watch Neg A4 AAA/Watch Neg D CCC- =========== S W E D E N =========== VOLVO AB: Board Withdraws Proposed Higher Bonus Caps for Execs -------------------------------------------------------------- The Associated Press reports Volvo AB's board of directors last week withdrew a proposal to raise bonus limits for the company's top executives amid public outcry and criticism from the Swedish Prime Minister. According to the AP, the board's proposal included a raise of the limit for performance-based salaries for 250 top executives to 60 percent of the fixed salary from the current 50 percent. It also included an increase to the number of shares in the executives' incentive programs, the AP says. Bloomberg News relates Volvo had proposed the changes last month, saying higher bonuses would bring the manufacturer in line with comparable companies and help recruit and retain executives. "We have noted that the proposal presented created debate, internally as well as externally," the AP quoted Volvo chairman Finn Johnsson in a statement. "As a result, the board does not want to present a proposal that adversely affects cooperation within the group in these exceptional times." The AP discloses the Swedish truck maker reported a SEK1.4 billion (US$120 million) loss in the fourth quarter and has been forced to cut nearly 16,000 jobs in the wake of the global financial crisis. French Gov't Aid As reported in the Troubled Company Reporter-Europe on Feb. 12, 2009, according to Dow Jones Newswires, Volvo AB said it won't take loans from the French government for its Renault Trucks unit as it considers further job cuts. Volvo has laid off 16,255 employees around the world since September and has already cut the work force at Renault Trucks in France by not renewing the temporary contracts of about 2,000 workers, according to Dow Jones. The report disclosed France revealed last month details of a plan to bail out its auto industry, which terms include keeping any French plants open for the duration of the loans. Dow Jones said French car makers PSA Peugeot-Citroën SA and Renault SA are to receive EUR3 billion, or about US$4 billion, in loans each, and as part of their loan agreements, both companies have agreed not to close any French plants for the duration of the five-year loans. "We can't take a loan [for Renault Trucks] with the kind of conditions they're imposing for the car makers in France," Dow Jones quoted Volvo spokesman Marten Wikforss as saying. According to Dow Jones, Volvo bought Renault's truck business, including Mack trucks in the U.S., in 2001 in a US$1.6 billion deal. As part of the agreement Renault took a 15% stake in the Swedish truck maker. Renault now is Volvo's largest shareholder with a 21.8% share of the capital and 21.3% share of the votes. About Volvo AB Based in Gothenburg, Sweden, Volvo AB (OTC:VOLVY) -- http://www.volvo.com/-- is a supplier of commercial transport solutions providing products, such as trucks, buses, construction equipment, drive systems for marine and industrial applications, as well as aircraft engine components. The Company is also engaged in providing financial services. The business areas of the Company are Volvo Trucks, Renault Trucks, Mack Trucks, Trucks Asia, Buses, Construction Equipment, Volvo Penta, Volvo Aero and Customer Finance. The business units include Volvo Powertrain, Volvo 3P, Volvo IT, Volvo Logistics and Volvo Parts. On April 30, 2007, the Company completed the acquisition of American Ingersoll Rand's road development division, with the exception of the operations in India, which followed on May 4, 2007. During the year ended December 31, 2007, the Company completed the acquisition of Nissan Diesel. In January 2007, AB Volvo completed the acquisition of 70% in Shandong Lingong Construction Machinery Co. (Lingong). VOLVO CAR: Says Financing Talks With Swedish Gov't Progressing -------------------------------------------------------------- Ford Motor Co.'s Volvo Car Corporation said its talks with the Swedish government on loan guarantees is progressing, Bloomberg News reports. The company is applying for funds from the European Investment Bank and Sweden will probably underwrite all of those obligations, the report cited Chief Executive Officer Stephen Odell as saying in a March 3 interview with Bloomberg Television. "The discussions with the Swedish government have been fantastic," Mr. Odell told Bloomberg Television. "They feel confident enough about our business viability. They're prepared to act as a 100 percent guarantor of loans that we've requested through the EIB, and they've gone through a pretty tough regime of looking at our business." Meanwhile, the report relates Volvo Cars said there's evidence that the global decline in auto sales is bottoming out. According to the report, Mr. Odell said automakers may have cause for optimism amid signs that the sales slump may be near bottom, citing rising used- car values in Europe as evidence that oversupply is drying up. European car registrations plunged 27 percent in January to the lowest level in at least two decades, according to data obtained by Bloomberg News from the Brussels-based European Automobile Manufacturers' Association. Geely Deal Ford is in talks to sell Volvo Cars to China's Geely Automobile Holdings Ltd., Bloomberg News reports citing sources familiar with the discussions. Geely is expected to submit a bid for the Swedish car maker as soon as next week, two people familiar with the situation said, as cited by The Wall Street Journal. Geely has begun working with a U.S.-based consulting firm to put together a list of possible managers to run Volvo Cars under Geely ownership, the Journal said citing one of its two sources. About Volvo Cars Based in Gothenburg, Sweden, Volvo Car Corporation --- http://www.volvocars.com/--- since 1999, has been 100% owned by Ford Motor Company. The 'Volvo' name is the property of Volvo Trademark Holding AB, which is owned jointly by Volvo Car Corporation and the company's former owner, AB Volvo. ===================== S W I T Z E R L A N D ===================== ALPENMILCH & HONIG: Creditors Must File Claims by April 10 ---------------------------------------------------------- Creditors owed money by LLC Alpenmilch & Honig are requested to file their proofs of claim by April 10, 2009, to: Claude Monnard Stuetzalpstrasse 5 7265 Davos Wolfgang Switzerland The company is currently undergoing liquidation in Davos. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 22, 2009. C.F. GASTRO: Deadline to File Proofs of Claim Set March 13 ---------------------------------------------------------- Creditors owed money by LLC C.F. Gastro are requested to file their proofs of claim by March 13, 2009, to: Claudia Frey Liquidator Im Birchli 14 8840 Einsiedeln Switzerland The company is currently undergoing liquidation in Unteriberg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 30, 2008. CLEANING SHOP: Creditors Have Until May 11 to File Claims --------------------------------------------------------- Creditors owed money by LLC Cleaning Shop are requested to file their proofs of claim by May 11, 2009, to: JSC Phoenix Capital Mail Box: 2464 8021 Zurich Switzerland The company is currently undergoing liquidation in Hergiswil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 23, 2009. LOCHER SECURITY: Creditors Must File Proofs of Claim by April 30 ---------------------------------------------------------------- Creditors owed money by LLC Locher Security Service are requested to file their proofs of claim by April 30, 2009, to: JSC Buhlmann Treuhand Bahnhofstrasse 30 6110 Wolhusen Switzerland The company is currently undergoing liquidation in Wolfwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 9, 2009. PROSHOP OBERBURG: Creditors' Proofs of Claim Due by April 30 ------------------------------------------------------------ Creditors owed money by LLC Proshop Oberburg B & L Trappe are requested to file their proofs of claim by April 30, 2009, to: JSC GHZ Treuhand+ Revision Wankdorffeldstrasse 64 3014 Bern Switzerland The company is currently undergoing liquidation in Oberburg. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Sept. 19, 2007. P45 RECORDS: March 29 Set as Deadline to File Claims ---------------------------------------------------- Creditors owed money by LLC P45 Records are requested to file their proofs of claim by March 29, 2009, to: Klingenstrasse 9 8005 Zurich Switzerland The company is currently undergoing liquidation in Zurich. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Jan. 14, 2009. SUN FUN: Creditors Must File Proofs of Claim by March 29 -------------------------------------------------------- Creditors owed money by LLC Sun Fun Anita Grob are requested to file their proofs of claim by March 29, 2009, to: Bahnhofstrasse 13 9630 Wattwil Switzerland The company is currently undergoing liquidation in Wattwil. The decision about liquidation was accepted at an extraordinary shareholders' meeting held on Dec. 16, 2008. UBS AG: Fitch Downgrades Individual Rating to 'D' ------------------------------------------------- Fitch Ratings has affirmed the Long-term and Short-term Issuer Default Ratings of UBS AG and UBS Limited at 'A+' and 'F1+,' respectively. The IDR affirmations reflect Fitch's view that, while the group's credit risk profile on a standalone basis may deteriorate over the near-term, given likely challenges to profitability, franchise and capitalization, these risks are mitigated by the very strong probability of government support. The IDR Outlooks are Stable, reflecting Fitch's view of continued official support being available. In Fitch's rating criteria, a bank's standalone risk is reflected in Fitch's individual ratings and the prospect of external support is reflected in Fitch's support ratings. Collectively these ratings drive Fitch's long- and short-term IDRs. The agency has downgraded UBS's Individual rating to 'D' from 'C' reflecting Fitch's concerns over the medium-term earnings outlook for the bank amid the impact of ongoing reputational and litigation issues on the stability of its key private banking and wealth management franchise and persistently challenging market conditions facing its investment banking franchise. The Rating Watch Negative on the Individual rating has been removed. At the same time, UBS's Support rating has been affirmed at '1' and its Support Rating Floor at 'A+'. Following the issue of mandatory convertible notes to the Swiss Confederation as part of the asset protection measures announced in December 2008, UBS is approximately 9% owned by the Swiss Confederation. This support, together with UBS's size relative to the Swiss banking sector, underpins Fitch's view of the very strong likelihood of continued support for the bank, and supports a Stable Outlook to its IDRs. Fitch has also downgraded the preferred stock and trust preferred securities issued by UBS and its preferred funding vehicles to 'BB' from 'BBB', reflecting the agency's view that the bank's continued weak earnings outlook increases the possibility of future coupon deferral, and that further pressure on capital ratios and/or additional injection of state funds further increases that possibility. Fitch has maintained these instruments on RWN to reflect this continued uncertainty. Fitch's hybrid capital rating criteria (July 2005) do not assume that government support would be forthcoming for these instruments. For similar reasons, Upper Tier 2 debt has been downgraded to 'BB+' from 'A' and placed on RWN. These ratings downgrades signal Fitch's concern over an operating outlook that presents persistent challenges to both the wealth management and investment banking franchises over the medium term. Fitch notes the recent appointment of Oswald Grubel as Chief Executive Officer and the nomination of Kaspar Villiger as Chairman, and views these as positive steps towards restoring confidence in the bank. However, the strategic and operating challenges that UBS faces should not be underestimated. During 2008, UBS reported a CHF226 billion decline in net new money in its combined global wealth management and asset management businesses. Management states that January saw positive flows but it remains to be seen how quickly, and sustainably, the negative trend can be reversed. Fitch expects 2009 to be characterized by continued economic uncertainty, so a material short-term recovery in earnings therefore appears unlikely. In Fitch's opinion any strategic redirection will take some time to achieve and in the meantime profitability is likely to remain severely challenged. Further, in Fitch's opinion, the ongoing investigations surrounding UBS's US cross border activities have the potential to challenge its offshore banking franchise and broader business strategy, further clouding a return to profitability. Despite its problems, UBS has maintained a sound regulatory capital position, with its reported quarterly and annual losses offset by fresh capital. Its end-2008 Tier 1 ratio of 11.5% also reflected its efforts to reduce risk weighted assets. In Fitch's opinion, UBS continues to face de-leveraging and de-risking challenges in order to meet the Swiss Financial Market Supervisory Authority's new minimum leverage requirements. While this should be achievable within FINMA's reported timescale, continued unstable market conditions, a weak earnings outlook and other market participants' expectations surrounding leverage could present challenges. However, measures such as additional state injections or the purchase or protection of troubled assets have the potential to support capitalization and leverage. Fitch will continue to monitor management's success in dealing with these specific challenges and its ability to deliver stable, sustainable and appropriate earnings with a refocused, lower risk strategy. Rating actions taken: UBS AG: -- Long-term IDR: affirmed at 'A+'; Outlook remains Stable -- Senior unsecured debt: affirmed at 'A+' -- Subordinated debt: affirmed at 'A' -- Preferred stock: downgraded to 'BB' from 'BBB'; remains on Rating Watch Negative -- Upper Tier 2 subordinated debt: downgraded to 'BB+' from 'A'; placed on Rating Watch Negative -- Short-term IDR: affirmed at 'F1+' -- Commercial paper and Short-term debt: affirmed at 'F1+' -- Individual rating: downgraded to 'D' from 'C' -- Support rating: affirmed at '1' -- Support Rating Floor: affirmed at 'A+' UBS Limited: -- Long-term IDR: affirmed at 'A+'; Outlook remains Stable -- Short-term IDR: affirmed at 'F1+' -- Support rating: affirmed at '1' UBS Preferred Funding Trust 1, 2, 3, and V UBS Preferred Funding Co. LLC 1, 2, 3, and V -- Preferred/Trust preferred stock: downgraded to 'BB' from 'BBB'; remains on Rating Watch Negative =========== T U R K E Y =========== ARCELIK AS: Fitch Cuts Local Currency Long-Term IDR to 'BB' ----------------------------------------------------------- Fitch Ratings has downgraded Arcelik A.S.'s local currency Long- term Issuer Default Rating to 'BB' from 'BB+' and National Long- term rating to 'AA(tur)' from 'AA+(tur)'. Arcelik's foreign currency Long-term IDR of 'BB' has been affirmed. All the ratings have been assigned Negative Outlooks. The downgrades reflect Arcelik's increased net leverage at end FY08 of 5.1x which was above Fitch's expectations. While the company has announced two major fund-raising initiatives from its main shareholder Koc Group, further deleveraging is likely to present a challenge in view of the weakening outlook for household appliances in 2009 and possibly in 2010. The company's FY08 results revealed some operating margin erosion despite reasonable top line growth. Higher-than-expected financial charges, driven by an increased cost of funding, materially eroded Arcelik's net profitability in FY08. The company has announced it will raise TRY250 million from the sale of an equity stake it holds in Koc Group's financial subsidiaries. Arcelik will also launch a TRY250 million rights issue, backed by its majority shareholder, Koc Holding. As such, Fitch expects Arcelik to raise a total of TRY500 million in H109. Furthermore, Fitch has noted the board's recommendation to not pay dividends from 2008 earnings in 2009, and other initiatives intended to conserve cash, such as reducing annual capex to maintenance levels only. The cash injection and the planned operational restructuring initiatives are expected to neutralize Arcelik's negative free cash flows and reduce leverage. At end FY08, the company reported 5.1x net leverage (end-FY07: 4.2x) and 1.4x net fixed charge coverage (end-FY07: 1.9x). Arcelik had TRY3.5 billion gross debt at end FY08, of which more than half is due in H209 and FY10, imposing a relatively short maturity schedule on the company, which is typical of Turkish exporters due to the use of short-term trade credit. The Negative Outlook is based on Fitch's assessment of the continued expected weaknesses in Arcelik's core markets, namely Turkey and Europe. Fitch expects net leverage to stay above 3x net debt /EBITDA levels, despite the lower debt stock. The challenges facing Arcelik are also being endured by its peers. Whirlpool and Electrolux (both rated 'BBB-' (BBB minus)/Negative), two of Arcelik's closest competitors on a global scale, also sustained profitability declines in 2008 primarily due to sharply lower demand. Arcelik is Turkey's largest household appliances manufacturer, with over a 50% domestic market share. It produced 10 million units of white goods and 2.8 million units of TV sets and reported TRY6.8 billion in consolidated sales in FY08. The company is 56%- owned by Koc Group of Turkey, while 21% is quoted on the Istanbul Stock Exchange. ============= U K R A I N E ============= ANTAL RESOURCE: Creditors Must File Claims by March 20 ------------------------------------------------------ Creditors of LLC Antal Resource Group (EDRPOU 35481379) have until March 20, 2009, to submit proofs of claim to Insolvency Manager LLC Audit Company Analitsynthese. The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 49/33-?. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030 Kiev Ukraine The Debtor can be reached at: LLC Antal Resource Group Kikvidze St. 18 01103 Kiev Ukraine EUROMONOLIT-F LLC: Creditors Must File Claims by March 20 --------------------------------------------------------- Creditors of LLC Euromonolit-F (EDRPOU 33638367) have until March 20, 2009, to submit proofs of claim to: I. Gusar Insolvency Manager Post Office Box 29 01030 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 44/49-?. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030, Kiev Ukraine The Debtor can be reached at: LLC Euromonolit-F Office 22 Mechnikov St. 8 01023 Kiev Ukraine MOTORCAR SALON: Creditors Must File Claims by March 20 ------------------------------------------------------ Creditors of LLC Motorcar Salon on Levoberezhnaya (EDRPOU 33543459) have until March 20, 2009, to submit proofs of claim to Insolvency Manager L. Nazarenko. The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 50/379. The Court is located at: The Economic Court of Kiev B. Hmelnitskiy St. 44-b 01030, Kiev Ukraine The Debtor can be reached at: LLC Motorcar Salon On Levoberezhnaya Office 105A M. Raskovaya St. 21 02002 Kiev Ukraine RUBICON LLC: Creditors Must File Claims by March 19 --------------------------------------------------- Creditors of LLC Rubicon (EDRPOU 31204255) have until March 19, 2009, to submit proofs of claim to: State Tax Inspection in Vyshgorod Insolvency Manager Shevchenko Avenue 1a 07300 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B2/222-08. The Court is located at: The Economic Court of Kiev Komintern St. 16 01032 Kiev Ukraine The Debtor can be reached at: LLC Rubicon Vyshgorod 07300 Kiev Ukraine SLOT LTD: Creditors Must File Claims by March 19 ------------------------------------------------ Creditors of LLC Slot Ltd. (EDRPOU 31801889) have until March 19, 2009, to submit proofs of claim to: State Tax Inspection in Vyshgorod Insolvency Manager Shevchenko Avenue 1a 07300 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B3/285-08. The Court is located at: The Economic Court of Kiev Komintern St. 16 01032 Kiev Ukraine The Debtor can be reached at: LLC Slot Ltd Shevchenko St. 1 Vyshgorod 07300 Kiev Ukraine VITIAZ LLC: Creditors Must File Claims by March 19 -------------------------------------------------- Creditors of LLC VITIAZ (EDRPOU 31070811) have until March 19, 2009, to submit proofs of claim to: State Tax Inspection in Vyshgorod Insolvency Manager Shevchenko Avenue 1a 07300 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B2/222-08. The Court is located at: The Economic Court of Kiev Komintern St. 16 01032 Kiev Ukraine The Debtor can be reached at: LLC Vitiaz Kiev St. 10 Vyshgorod 07300 Kiev Ukraine VYSUN-MTS-SERVICE LLC: Creditors Must File Claims by March 19 ------------------------------------------------------------- Creditors of LLC Vysun-MTS-Service (EDRPOU 00429192) have until March 19, 2009, to submit proofs of claim to Insolvency Manager S. Ratinskaya. The Economic Court of Nikolayev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 14/395/08. The Court is located at: The Economic Court of Nikolayev Admiralskaya St. 22-a 54009 Nikolayev Ukraine The Debtor can be reached at: LLC Vysun-MTS-Service Vysunsk Berezneguvatsky Nikolayev Ukraine =========================== U N I T E D K I N G D O M =========================== ASHTEAD GROUP: S&P Changes Outlook to Negative; Keeps 'BB-' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said it revised to negative from stable its outlook on U.K.-based plant hire firm Ashtead Group PLC, reflecting S&P's expectation of a deteriorating trading environment in the group's core U.S. and U.K. nonresidential construction markets. At the same time, the group's 'BB-' long- term corporate credit rating was affirmed. "The negative outlook primarily reflects our concerns that the group's markets are suffering from recessionary economic conditions, which will contribute to a significant slowing in nonresidential construction activity," said Standard & Poor's credit analyst Leigh Bailey. "A moderation of demand has been expected for some time and Ashtead is well prepared to counter a slowing in its markets. However, the depth and duration of the downturn and its potential impact on the group's medium-term operating performance and financial profile, in S&P's view, is sufficiently uncertain to warrant a negative outlook." Ashtead's performance in the equipment rental business is closely tied to the construction spending cycle. Nonresidential spending is starting to decline compared with 2007's healthy conditions. Currently, Standard & Poor's expects a decline in nonresidential construction spending in 2009. More specifically, S&P's economic forecast is for a 15% decline in U.S. nonresidential construction spending. As a late cycle business, the full extent of the economic downturn, in S&P's view, has not yet fully filtered through to Ashtead's reported results. While Ashtead achieved profit growth in the first half of its current financial year ended April 30, 2009, the group's third- quarter results for the period ended Jan. 31, 2009, provide strong evidence, in S&P's opinion, that the economic slowdown is beginning to have an adverse impact on Ashtead's operating performance. Difficult market conditions in the third quarter were reflected by a reduction in dollar revenues of 15% and a fall in profits of 46% in the group's U.S. rental business, which accounts for about 80% of group revenues. At the U.K. operations, revenues reduced by 14% and profits decreased to marginal levels. S&P believes that the operating environment will remain difficult during 2009 and that like-for-like operating performance over the next few quarters will be subject to considerable pressure. Ashtead has taken effective action to adjust its cost base to a harsher market environment and to significantly reduce capital expenditure to preserve cash and to reduce high debt levels. Important structural factors, driven by recessionary economic conditions, such as diminishing rental rates, depending on the region and equipment type, and a downward trend in time utilization rates may, however, be challenging to fully offset with cost-saving measures. The negative outlook reflects S&P's concerns that the deterioration in market conditions for the nonresidential construction industry may constrain the group's future operating performance. This could potentially hamper the group's efforts to improve its leveraged financial profile. Ashtead's ability to generate free cash flow in line with plan will be an important support to the financial profile if operating profits come under pressure. Should free cash flow not be maintained in line with management's expectations or underlying asset values supporting the group's borrowing base deteriorate to such an extent that liquidity is materially constrained, the ratings could be lowered. If target ratios of FFO to debt of 25%- 30% and adjusted debt to EBITDA at constant currency of 2.5x-3.0x are maintained, S&P would view this as consistent with the current rating levels. On the basis of information currently available to the rating agency, S&P anticipates that an outlook revision to stable is unlikely in the short term due to the uncertain trading environment. CAPMARK SERVICES: Fitch Downgrades Servicer Rating to 'CPS2+' ------------------------------------------------------------- Fitch Ratings has downgraded Capmark Services (Ireland) Limited and Capmark Services UK Limited's UK Commercial Mortgage Primary and Special Servicer ratings to 'CPS2+' and 'CSS2' from 'CPS1- (minus)' and 'CSS2+', respectively. The agency has simultaneously placed the ratings on Rating Watch Negative. The rating actions are the direct result of the downgrades of Capmark Financial Group Inc.'s Long and Short-term Issuer Default Ratings to 'B-' (B minus) and 'B' from 'BBB-' (minus) and 'F3' respectively on February 26, 2009. While the CFG downgrades do not immediately impact Capmark's UK servicing operation, the downgrades do affect Capmark's financial condition which is an important component within Fitch's servicer ratings. Fitch understands that Capmark is self-sustaining and is not reliant on CFG for financial support. Nevertheless, the CFG downgrades hinder the parental support afforded Capmark should the need arise. The RWN addresses Fitch's ongoing concerns and uncertainty surrounding Capmark's ability to effectively administer and manage commercial mortgage loans, and how CFG's current financial situation may impact Capmark in the near- to long-term. Fitch will continue to monitor the situation and specifically assess how CFG's financial performance impacts Capmark. The agency will take additional ratings action if necessary. Fitch notes that there have been no changes to Capmark's management team since the agency's review in March 2008 and staffing levels within the UK and European servicing teams based in Mullingar, Ireland and London have remained fairly stable. Based on current and projected growth in special servicing, a new asset manager was hired in mid-2008, and additional administrative resources have been allocated to the special servicing team. The agency also notes that Capmark Ireland currently provides servicer advancing, in place of the traditional liquidity facility, for several European CMBS transactions issued since 2007. However, the advancing agent is Capmark Bank Europe plc and while the bank is scheduled to surrender its banking license shortly, Bank of America, N.A. (London Branch) (BoA, rated 'A+'/Stable/'F1+') has been appointed as the backup advancing agent on all relevant transactions. While there is no implicit guarantee from either CFG or Capmark Ireland to advance on the bank's behalf, the advancing responsibility would presumably fall to BoA should the need arise. Fitch understands from conversations with Capmark that discussions are currently underway with BoA regarding the operational aspects of BoA assuming the advancing role. As of end-February 2009, Capmark's UK servicing portfolio included 392 loans secured by 1,545 properties with an Unpaid Principal Balance of GBP8.38 billion. The remaining portfolio includes 356 loans secured by 3,528 properties located throughout Europe with an UPB of EUR27.2 billion. The RWN indicates that Fitch may either downgrade or affirm Capmark's servicer ratings depending on the stability of the servicing portfolio, operational capabilities and financial condition. The RWN is expected to be resolved once more information is received regarding Capmark's future, and once Capmark demonstrates the continuity and stability of its operation, in light of its current situation. Capmark is currently the named primary and/or special servicer on these Fitch-rated UK and European CMBS transactions with advancing requirements duly noted: -- Cornerstone Titan 2005-1 plc -- Cornerstone Titan 2005-2 plc -- Cornerstone Titan 2006-1 plc (servicer advancing) -- Cornerstone Titan 2007-1 plc (servicer advancing) -- European Property Capital 3 plc -- European Property Capital 4 plc -- Fleet Street Finance 2 plc -- Fleet Street Finance One plc -- Fleet Street Finance Three plc -- German Residential Asset Note Distributor plc -- German Residential Funding plc -- Infinity 2007-1 (SoPRANo) -- ING (UK) Listed Real Estate Issuer plc -- Taurus CMBS (Germany) 2006-1 plc -- Taurus CMBS (Pan-Europe) 2006-3 plc -- Taurus CMBS (Pan Europe) 2007-1 Limited -- Taurus CMBS (UK) 2006-2 plc -- Taurus CMBS No. 1 plc -- Taurus CMBS No 2 S.r.l. -- Titan Europe 2007-1 (NHP) Limited (servicer advancing) -- Titan Europe 2007-2 Limited (servicer advancing) -- Ursus EPC plc -- Victoria Funding (EMC-III) plc -- EuroProp (EMC) S.A. (Compartment 1) -- Tahiti Finance Plc Fitch notes that the current servicer ratings downgrades for Capmark do not have any immediate impact on the ratings of the above referenced CMBS transactions. However, the agency will continue to monitor the situation as it relates to the Capmark's servicing of the securitized transactions and take additional rating action if necessary. COCO RIBBON: Enters Administration Amid Sales Slump --------------------------------------------------- Nadia Ghani at Brand Republic reports that Coco Ribbon, a luxury underwear, clothing and gift boutique in west London, has ceased trading after the economic downturn hit sales. The report relates that according to Alison Chow, founder of Coco Ribbon, online sales did not contribute enough for the company to remain buoyant. Ms. Chow, as cited by the report, said the retailer, which had recently published plans to expand into Russia, is currently entering administration and will assess a number of restructuring options. CORNHILL CONSTRUCTION: Two Subsidiaries Placed Into Administration ------------------------------------------------------------------ Alex Hawkes at Construction News reports that directors of Cornhill Construction placed two of the group's subsidiaries, Cornhill Interiors and Cornhill Retail, into administration following a full review by Tenon Recovery. Colin Wilson of Tenon Recovery was appointed administrator of both companies Tuesday last week, the report discloses. Cornhill Construction, the report relates, suffered from cash flow issues and in recent weeks has been experiencing increasing pressure from creditors. The group laid off 21 people at the same time, with only 41 staff left to maintain the goodwill of the contracts, the report notes. "The Group will endeavor to continue with all client contracts while seeking a sale of the business. We have already been speaking to a number of well known parties in the construction industry that have shown strong interest and we are hopeful of deal in the coming weeks," the report quoted Mr. Wilson as saying. Citing accounts filed with Companies House, the report discloses Cornhill Interiors had a turnover of GBP13 million in the year to March 2008. FRASER EAGLE: Enters Administration; 180 Jobs at Risk ----------------------------------------------------- BBC News reports that the directors of Fraser Eagle, the main sponsor of Accrington Stanley FC, filed a notice of intention to appoint an administrator for the company, putting 180 jobs at risk. According to BBC, the areas of the company affected are Fraser Eagle Ltd, Property Holding Company Ltd and Fraser Eagle London, which make up the majority of operations. The offices at its headquarters in Padiham have been closed to the public, BBC notes. BBC states administrators will now be appointed to go in and run the company. BBC relates that the business has been badly hit by the economic climate and has lost contracts with First travel and Arriva. Rob Heyes, chief executive of Accrington Stanley, as cited by the report, said the company's administration would have obvious implications for the club. Fraser Eagle is a transport, travel and logistics business based in Padiham, Lancashire. ITV PLC: Moody's Downgrades Senior Unsecured Ratings to 'Ba2' ------------------------------------------------------------- Moody's Investors Service said that it has downgraded ITV plc's senior unsecured ratings, Corporate Family Rating and Probability of Default rating, to Ba2 (from Ba1). The rating outlook for ITV is negative. The downgrade is prompted by the pronounced weakness in UK television advertising, which has continued to deteriorate in recent months, and Moody's expectation that ITV's debt protection measurement will weaken further. A negative outlook reflects the lack of visibility as ITV remains hamstrung by regulatory constraints such as the contract rights renewal mechanism at least for the current year. According to ITV, the company's Net Advertising Revenue fell by 4%, but remained ahead of the overall UK market, which was down by 5%. ITV's estimates regarding current trading suggest that negative trends continue unabated with a further sequential worsening relative to the fourth quarter of 2009 expected with both ITV and the market down by a further 17% year-on-year. Forward visibility remains very limited and while comparables begin to ease with Q3 2009, a NAR decline that reaches double digits now appears probable and a NAR decline into 2010 not unlikely. Against this background, ITV's operating profitability will remain under pressure (pre-exceptional EBITA was GBP 211 million for 2008 after GBP311 million in 2009) and measures of relative indebtedness are set to worsen (Net Debt /EBITDAR (pre exceptionals) increased to ~4.1x from ~2.7x in 2007), Moody's said. The agency also notes that ITV has abandoned its ambitious growth targets for 2012 as laid out in September 2007 and is now emphasizing cost reductions and cash generation while focusing on its core remit as producer-broadcaster. To combat top-line pressure, the company has stepped up its cost saving plans and now expects to achieve increased efficiency savings of GBP50 million (previously GBP27 million) and GBP65 million in programming savings in 2009. While ambitious, this appears achievable, given amongst other things that ITV's commercial competitors are under significant cost pressure as well. ITV has maintained its family SOCI target of 38.5% for 2012 and in 2008 broadly held its family SOCI share at 41% (after 41.7%) and its overall share of NAR. However, while the flagship ITV1 channel kept SOCI in absolute terms relatively stable at 236 billion impacts (after 237 billion in 2007) continued growth in available impacts meant that ITV1's SOCI share, a key driver for its 2009 NAR under the CRR mechanism fell to 30% (from 32%). Nevertheless the Ba2 rating remains supported by the still considerable strength of ITV's broadcasting franchise, its well established programming operations and the positive impact of the company's efforts to compensate for the decline in ITV1's NAR, by developing the share of audience and therefore NAR of a broader family of digital channels. Moody's also notes that recent regulatory developments suggest that there might be some easing of the burden for ITV as the CRR and public service reviews progress and that ITV has identified assets for sale (Friends Reunited) and is reviewing others in its efforts to protect the balance sheet. Moody's regards ITV's liquidity profile as sufficient for its current needs. As of December 2008, the company had cash and cash equivalents of GBP446 million (excluding certain restricted und unavailable cash amounts totaling GBP170 million). During the first quarter of 2009 ITV also drew down GBP50 million under a new ten-year loan and GBP125 million under a new five-year facility, which together with cash on hand allowed the company to repay a GBP250 million bond that matured in March 2009 and to make a GBP50 million final payment in respect of the earn-out relating to the Friends Reunited acquisition in 2005. The remaining cash on hand together with a committed GBP75 million facility, which the company expects to utilize during 2009 should allow ITV to satisfy its near-term operational liquidity needs. However, Moody's will carefully monitor developments during 2009 and would expect ITV to underpin its liquidity position further when possible. The agency notes that ITV has now no material scheduled debt maturity before October 2011. Moody's does not believe that ITV will contemplate any material acquisitions in the near-term and in any case would expect any such transaction to be funded from the proceeds of asset or equity sales. While ITV should be in compliance with the financial covenants under its un-drawn GBP450 million Revolving Credit Facility (due June 2011) for the December 31, 2008 testing date, Moody's believes that ongoing compliance with covenants might well be challenging in the near-term and therefore excludes the facility from its liquidity considerations. Ratings downgraded are : ITV's EMTN program to Ba2 (from Ba1), long-term debt issues under the program falling due 2011, 2015 and 2017 to Ba2 (from Ba1) as well as ITV's CFR and PDR to Ba2 (from Ba1). The last rating action for ITV was on September 16, 2008 when Moody's downgraded the company's senior unsecured ratings to Ba1 (from Baa3) and its short-term ratings to Non-Prime (from Prime-3). At the same time the agency assigned a Ba1 Corporate Family Rating, a Ba1 Probability of Default rating and a negative outlook to the company. Headquartered in London, England, ITV plc is the leading owner of channel 3 franchises in the UK free-to-air TV market, and generated turnover of just over GBP2 billion in the year to December 2008. ITV PLC: S&P Lowers Long-Term Corporate Credit Rating to 'BB-' -------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered its long- term corporate credit and senior unsecured debt ratings on U.K. private TV broadcaster ITV PLC to 'BB-' from 'BB+'. The outlook is stable. Simultaneously, the ratings were removed from CreditWatch where they had been placed with negative implications on Jan. 27, 2009. At the same time, S&P affirmed its 'B' short-term corporate credit rating on ITV. The '4' recovery rating on all of ITV's outstanding bonds is unchanged. The '4' recovery rating indicates S&P's expectation of average (30%-50%) recovery for unsecured creditors in the event of a payment default. "The downgrade reflects our opinion of the material deterioration of ITV's reported EBITDA and credit measures in 2008, as well as S&P's view that both are likely to suffer further deterioration in 2009, in line with S&P's expectations of a significant decline of the U.K. advertising market this year," said Standard & Poor's credit analyst Melvyn Cooke. The downgrade also reflects S&P's view that ITV's liquidity, which was one of the key supporting factors at the 'BB+' rating level, is likely to weaken more significantly than S&P had initially expected over the next few quarters, despite ITV's announcement that it has suspended a final dividend payment for 2008, and that it will benefit from cost savings of about GBP155 million in 2009. S&P also understand that ITV's management intends to increase cost savings to an annual total of GBP175 million by 2010 and GBP245 million in 2011. The stable outlook incorporates S&P's assumptions that ITV's advertising revenues are not likely to decrease significantly more than at a low double-digit rate in 2009, and that ITV's cost and cash saving initiatives should somewhat limit the impact on its EBITDA margin, cash flow, and credit measures. S&P would expect ITV to post adjusted gross debt to EBITDA of under 7x in 2009, and to remain free cash flow positive. "The outlook also reflects our anticipation that ITV will continue to protect its audience and advertising market share in the current downturn, despite likely cuts to programming costs," said Mr. Cooke. Finally, S&P believes that ITV's liquidity is likely to remain adequate in 2009, despite the anticipated lack of availability of its GBP450 million revolver during the year. A fall in ITV's advertising and EBITDA margin greater than S&P currently anticipate, and/or unexpected cash flow losses resulting in credit measures weaker than S&P currently expect, may result in an outlook revision to negative or a downgrade. The ratings would come under pressure if the group's liquidity were to steadily deteriorate. Conversely, any financial policy initiative that would result in a material strengthening of ITV's capital structure and liquidity may result in upward rating momentum. Material improvement in ITV's operating performance, while not anticipated by Standard & Poor's at this point, could also result provide upward ratings movement. LLOYDS BANKING: U.K. Gov't Provides US$367 Bln in Asset Insurance ----------------------------------------------------------------- Andrew MacAskill and Jon Menon at Bloomberg News report Lloyds Banking Group Plc obtained GBP260 billion (US$367 billion) in state guarantees increasing the U.K. government's stake in the bank to as much as 75 percent from 43 percent. Under the agreement, Lloyds will pay GBP15.6 billion for asset protection, or 5.2 percent of the insured assets, in the form of non-voting shares, the report says citing the bank in a statement. Lloyds also agreed to increase lending to businesses and homeowners by GBP28 billion over the next 24 months, the report relates. In return, the report says Lloyds will get government insurance for GBP74 billion of residential mortgages, GBP18 billion of unsecured personal loans, GBP151 billion of corporate and commercial loans and GBP17 billion of treasury assets. The report relates Lloyds will be responsible for the initial GBP25 billion of losses on the insured assets and will cover 10 percent of any additional losses, with the Treasury responsible for the rest. The government will also underwrite a GBP4 billion share sale and convert existing preference shares into equity, the report discloses. According to Bloomberg News, about 83 percent of the assets Lloyds is insuring came from HBOS Plc. Lloyds acquired HBOS's deteriorating quality of loans when it bought the firm in a government-brokered deal, the report says. The report recalls in September, Lloyds agreed to buy HBOS for about GBP7.7 billion as the government sought to prevent HBOS from collapsing after credit markets froze. Last month, HBOS posted a pretax loss of GBP7.5 billion, the report notes. Right Deal Reuters reports Lloyds chief executive Eric Daniels said the asset protection scheme is good for investors as it will provide protection against a weakening economy. "We got the right deal for Lloyds shareholders," Mr. Daniels told Reuters in an interview. "I think that with the (asset protection) scheme we are tremendously well-capitalized in an uncertain environment, and that's not a bad place to be." Mr. Daniels said he would meet with shareholders today, Monday, to discuss the agreement, Reuters relates. The Lloyds board has unanimously backed the agreement, reached early on Saturday after two weeks of negotiations with the government, the bank said as cited by Reuters. About Lloyds Banking Group PLC Lloyds Banking Group Plc (LON:LLOY) –- http://www.lloydsbankinggroup.com/-- formerly Lloyds TSB Group plc, is United Kingdom-based financial services company, whose businesses provide a range of banking and financial services in the United Kingdom and a limited number of locations overseas. The operations of Lloyds TSB Group in the United Kingdom were conducted through over 2,000 branches of Lloyds TSB Bank, Lloyds TSB Scotland plc and Cheltenham & Gloucester plc during the year ended December 31, 2007. Cheltenham & Gloucester plc (C&G) is the Company's specialist mortgage arranger. Following the transfer of its mortgage lending and deposits to Lloyds TSB Bank, during 2007, C&G arranges mortgages for Lloyds TSB Bank rather than for its own account. International business is conducted mainly in the United States and continental Europe. Lloyds TSB Group's services in these countries are offered through branches of Lloyds TSB Bank. In January 2009, the Company acquired HBOS plc. MACKINTOSH & PARTNERS: Appoints Liquidators from Tenon Recovery --------------------------------------------------------------- A. J. Pear and I. Cadlock of Tenon Recovery were appointed joint liquidators of Mackintosh & Partners Ltd. on Feb. 13, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Third Floor Lyndean House 43/46 Queens Road Brighton East Sussex BN1 3XB England MWPA LTD: Taps Joint Liquidators from Baker Tilly ------------------------------------------------- Andrew Martin Sheridan and Guy Edward Brooke Mander of Baker Tilly Restructuring and Recovery LLP were appointed joint liquidators of MWPA Ltd. on Feb. 11, 2009, for the creditors' voluntary winding- up proceeding. The company can be reached through Baker Tilly Restructuring and Recovery LLP at: Hartwell House 55-61 Victoria Street Bristol BS1 6AD England SPRINGFIELD ENGINEERING: Appoints Joint Liquidators from PKF ------------------------------------------------------------ Ian J. Gould and Brian J. Hamblin of PKF (UK) LLP were appointed joint liquidators of Springfield Engineering Ltd. on Feb. 12, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through PKF (UK) LLP at: New Guild House 45 Great Charles Street Queensway Birmingham B3 2LX England TATA MOTORS: Jaguar Workers Accept Shorter Week, Pay Freeze ----------------------------------------------------------- The Daily Telegraph reports that workers at Tata Motor Ltd's Jaguar Land Rover accepted a shorter working week and a one-year pay freeze to avoid compulsory job cuts. The report relates members of Unite and the GMB unions voted 70% to 30% in favor of the deal on the advice of union officials. According to the report, the deal is designed to save GBP70 million at production sites in Castle Bromwich and Solihull in central England and Halewood in Liverpool, northwest England. Jaguar Land Rover, the report discloses, has laid off around 1,800 permanent and agency staff in recent months after suffering from slumping demand in the global downturn. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. On CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 2, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to B1 from Ba2. The outlook remains negative. "The rating change reflects the slowdown in demand seen in both Tata Motors Ltd's domestic and overseas markets. This translates into pressure on profitability, and happens at a time when the company has increased its leverage. Tata Motors Ltd's financial flexibility is therefore significantly weakened," Elizabeth Allen, a Moody's Vice President/Senior Credit Officer said. TATA MOTORS: Moody's Downgrades Corporate Family Rating to 'B3' --------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating of Tata Motors Ltd to B3 from B1. The outlook remains negative. "The rating change reflects TML's limited financial flexibility, high gearing as well as imminent refinancing risk in the context of weak market conditions in India and overseas," says Elizabeth Allen, a Moody's Vice President/Senior Credit Officer. "The significant decline in sales volume challenges the company's ability to achieve cash flow and profitability breakeven and thus a reliance on debt funding," says Allen. The Indian commercial and passenger vehicle markets declined significantly by 44% and 16% year-on-year respectively during 4Q2008. Although TML increased its market share, it reported sharp decline in profitability for the quarter and the 9 months ended December 2008. Some improvements were seen in January and February. TML reported year-on-year domestic sales volume decline of 25% for commercial vehicles in February while volume for passenger cars was similar to the previous year. The commercial vehicle segment is not expected to rebound to near historical levels in the near term. As a result, any cost savings and reduction in raw material prices may not be sufficient to offset the impact of volume reduction. At the same time, TML overseas operation, Jaguar Land Rover, also reported a material decline in overall sales. Since global auto market conditions are likely to remain depressed in 2009, JLR's performance will remain under significant pressure. While TML has reviewed and cut back its capital expenditure, it expects to maintain R&D spending on new product introduction as well as investment in the Nano project in order to maintain its competitiveness. As a result, until any equity raising or asset divestment is completed, the prospect of de-leveraging in the next 12-18 months is very limited. Moody's expects TML's leverage to remain at a high level which is more commensurate with (or below) a B3 rating. TML's capital structure also has a very high proportion of short- term debt. The US$2 billion bridge loan (paid down from US$3bn) that TML raised for the acquisition of JLR will fall due in early June. TML started the negotiation with key lenders for its refinancing, but the timeframe to complete such refinancing is yet to be finalized. Given the very tight credit conditions globally, the refinancing poses a significant risk to the company. Excluding the bridge loan, TML relies on uncommitted renewable bank lines for funding, a common practice in India. Moody's acknowledges TML's recognition in the Indian market and the fact that, as part of the broader Tata Group, it has good access to the Indian banking system. Therefore the current rating assumes that these domestic bank credit facilities will be rolled-over as in the past. The rating also incorporates TML's strong market position in India as well as support from Tata Sons Ltd (unrated). While the broader Tata Group faces significant challenges given the group's expansion in recent years, being part of the group helps TML's access to funding. The negative outlook reflects TML's imminent refinancing needs, tight liquidity position, weak capital structure and challenging market conditions. As such, a rating upgrade is unlikely in the near term. The rating could revert to stable if 1) the bridge loan is successfully funded by appropriate long-term funding; 2) the reliance on short-term debt funding is reduced such that the overall capital structure of the group is more balanced; and 3) operating performance stabilizes. The completion of asset sales or equity-related fund raising, which would result in a material and lasting reduction in the company's leverage, could also benefit the rating. On the other hand, the rating would experience downward pressure if: 1) TML fails to effectively refinance the bridge loan; 2) there is further deterioration in the motor industry's or TML's fundamentals; and/or 3) signs emerge that access to funding is proving difficult. Moody's last rating action with regard to TML was a downgrade to B1 with a negative outlook taken on November 28, 2008. Tata Motors Ltd, incorporated in 1945, is India's largest manufacturer of commercial vehicles and second largest of passenger vehicles. Its products include light, medium and heavy commercial vehicles (trucks, pick-ups and buses), utility vehicles and cars. TML is listed on the Bombay Stock Exchange, National Stock Exchange of India and New York Stock Exchange. It was ultimately 42% owned by the Tata Group as of Decembers 2008. T & A LOGISTICS: Calls in Joint Liquidators from Tenon Recovery --------------------------------------------------------------- Ian William Kings and Steven Philip Ross of Tenon Recovery were appointed joint liquidators of T & A Logistics (Newcastle) Ltd. on Feb. 17, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Tenon House Ferryboat Lane Sunderland Tyne & Wear SR5 3JN England T M PROPERTIES: Taps Joint Liquidators from Tenon Recovery ---------------------------------------------------------- A. J. Pear and I. Cadlock of Tenon Recovery were appointed joint liquidators of T M Properties Ltd. on Feb. 16, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached at: T M Properties Ltd. 30-34 North Street Hailsham East Sussex BN27 1DW England T.G. MULTIPLAS: Appoints Joint Liquidators from Tenon Recovery ---------------------------------------------------------------- Jonathan Paul Philmore and Thomas Ernest Dixon of Tenon Recovery were appointed joint liquidators of T.G. Multiplas Ltd. on Feb. 18, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Unit 1 Calder Close Calder Park Wakefield WF4 3BA England TRADEWINDS INTERNATIONAL: Appoints Liquidators from Baker Tilly --------------------------------------------------------------- Andrew Martin Sheridan and Guy Edward Brooke Mander of Baker Tilly Restructuring and Recovery LLP were appointed joint liquidators of Tradewinds International (Timber) Ltd. on Feb. 11, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Baker Tilly Restructuring and Recovery LLP at: Hartwell House 55-61 Victoria Street Bristol BS1 6AD England TRIBUNE LTD: Moody's Junks Rating on US$10 Mil. Notes from 'B2' --------------------------------------------------------------- Moody's Investors Service announced it has downgraded its rating of one class of notes issued by Tribune Ltd. This transaction represents the repackaging of certain Aaa rated collateral and a synthetic link to the Maple 2005-241 CDO Tranche A1 swap. The Issuer has also entered into an asset and default swap with Royal Bank of Canada, currently rated Aaa. This rating action is the result of the downgrade of Maple 2005-241 CDO Tranche A1 swap to Ca from B2. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for repackaged securities as described in Moody's Special Reports below: -- Repackaged Securities (October 2001) -- Moody's Refines It's Approach to Rating Structured Notes (July 1997) The rating action is: Tribune Ltd: (1) Series 20 US$10,000,000 Floating Rate Credit Linked Secured Notes due 2010 -- Current Rating: Ca -- Prior Rating: B2 -- Prior Rating Date: 24 October 2008, downgraded to B2 from A3 TURNBULL LTD: Taps Joint Liquidators from Tenon Recovery -------------------------------------------------------- Ian William Kings and Steven Philip Ross of Tenon Recovery were appointed joint liquidators of Turnbull (Electro Platers) Ltd. on Feb. 16, 2009, for the creditors' voluntary winding-up proceeding. The company can be reached through Tenon Recovery at: Tenon House Ferryboat Lane Sunderland Tyne and Wear SR5 3JN England * PwC Says UK Companies Face Deep and Prolonged Recession --------------------------------------------------------- Economists at PricewaterhouseCoopers LLP (PwC) have warned that companies need to plan for a deep and prolonged recession. The main scenario in the latest PwC UK Economic Outlook report is for GDP to fall by more than 3% in 2009, followed by average GDP growth of around zero in 2010. The report sees the recession continuing throughout 2009 and into early 2010, with a peak to trough fall in UK GDP of around 4.5% between Q2 2008 and Q1 2010, similar to the early 1980s recession and worse than the mid-1970s or early 1990s downturns. John Hawksworth, head of macroeconomics at PricewaterhouseCoopers LLP, said: "This relatively downbeat projection reflects a combination of rising unemployment, falling house prices, reduced credit availability and slower global growth. "Furthermore, risks are weighted to the downside and we recommend that businesses should stress test their plans and valuations against a pessimistic scenario of an even deeper and more prolonged slump in which GDP falls by around 5% this year, followed by a further 2% fall in 2010. "With further interest rate cuts likely to bring limited economic benefits, there needs to be an increasing focus on quantitative easing by the Bank of England to ease liquidity and credit conditions in key asset markets." Consumer spending is forecast to fall by around 3% this year, due to the severe squeeze from high debt levels, tighter credit conditions, falling housing wealth and rising unemployment. There is also expected to be a further real decline of around 0.75% in consumer spending in 2010, as households try to reduce their debt burdens and return savings ratios to more normal levels. At the same time, PwC expects average UK house prices to fall by a further 15-20% this year and business investment to decline by more than 10% in 2009. The relatively cyclical manufacturing sector is expected to suffer particularly severely from the decline in world trade associated with the global recession, with UK manufacturing output projected to fall by more than 8% in 2009. The report also warns that the budget deficit is projected to jump to around 10% of GDP in 2009/10, which would be the highest level since the Second World War. Bringing this deficit back down will require a combination of significant tax increases and tight public spending controls in the medium term, although such measures should not be introduced until after the recession is over. About PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP -- http://www.pwc.co.uk/-- provides industry-focused assurance, tax and advisory services. It has more than 16,000 partners and staff in offices around the UK. * BOND PRICING: For the Week March 2 to March 6, 2009 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- CYPRUS ------ Abh Financial Lt 8.200 06/25/12 USD 69.88 8.200 06/25/12 USD 69.78 Alfa MTN Invest 9.250 06/24/13 USD 72.54 FRANCE ------ Alcatel SA 4.750 01/01/11 EUR 12.89 6.380 04/07/14 EUR 56.68 Axa SA 7.130 12/15/20 GBP 75.19 8.600 12/15/30 USD 72.00 Calyon 6.000 06/18/47 EUR 44.10 Soc Air France 2.750 04/01/20 EUR 18.62 Wavecom SA 1.750 01/01/14 EUR 30.73 GERMANY ------- Bayer AG 5.000 07/29/2105 EUR 73.06 GREECE ------ Antenna TV SA 7.250 02/15/15 EUR 63.13 HUNGARY ------- Agrokor 7.000 11/23/11 EUR 67.02 IRELAND ------- Allied Irish Bks 5.250 03/10/25 GBP 63.11 5.630 11/29/30 GBP 59.13 Alfa Bank 8.630 12/09/15 USD 56.54 8.640 02/22/17 USD 49.38 Ardagh Glass 7.130 06/15/17 EUR 65.63 7.130 06/15/17 EUR 65.85 Banesto Finance Plc 6.120 11/07/37 EUR 6.12 Bank of Ireland 4.630 02/27/19 EUR 60.55 ITALY ----- Banca Italease 3.000 06/30/11 EUR 73.75 3.000 09/30/11 EUR 71.13 LUXEMBOURG ---------- Acergy SA 2.250 10/11/13 USD 65.06 Ak Bars Bank 9.250 06/20/11 USD 69.41 Alrosa Finance 8.880 11/17/14 USD 66.82 8.880 11/17/14 USD 65.64 Bank of Moscow 7.340 05/13/13 USD 60.15 7.340 05/13/13 USD 61.60 7.500 11/25/15 USD 52.01 6.810 05/10/17 USD 43.25 Beverage Pack 8.000 12/15/16 EUR 70.79 8.000 12/15/16 EUR 70.38 9.500 06/15/17 EUR 44.75 9.500 06/15/17 EUR 45.48 NETHERLANDS ----------- ABN Amro Bank NV 6.000 03/16/35 EUR 49.63 Achmea Hypobk 4.300 04/03/24 EUR 76.40 4.000 12/27/24 EUR 71.63 Aegon NV 6.130 12/15/31 GBP 69.00 Air Berlin Finance BV 1.500 04/11/27 EUR 34.53 Alfa Bk Ukraine 9.750 12/22/09 USD 56.46 ALB Finance BV 9.000 11/22/10 USD 19.99 9.750 02/14/11 GBP 19.99 8.750 04/20/11 USD 19.97 7.880 02/01/12 EUR 18.98 ASML Holding NV 5.750 06/13/17 EUR 65.46 ASM Intl NV 4.250 12/06/11 USD 71.50 4.250 12/06/11 USD 65.75 Astana Finance 7.880 06/08/10 EUR 29.99 ATF Capital BV 9.250 02/21/14 USD 41.93 9.250 02/21/14 USD 53.70 Centercrdt Intl 8.000 02/02/11 USD 50.78 8.630 01/30/14 USD 36.71 Hit Finance BV 4.880 10/27/21 EUR 73.99 JSC Bank Georgia 9.000 02/08/12 USD 34.75 SPAIN ----- Ayt Cedulas Caja 3.750 06/30/25 EUR 73.72 Banco Bilbao Viz 4.380 10/20/19 EUR 71.05 UNITED KINGDOM -------------- Annes Gate Ppty 5.660 06/30/31 GBP 75.23 Anglian Water Finance Plc 2.400 04/20/35 GBP 48.63 Ashtead Holdings 8.630 08/01/15 USD 56.13 8.630 08/01/15 USD 56.75 Aspire Defence 4.670 03/31/40 GBP 62.52 4.670 03/31/40 GBP 61.90 Aviva Plc 5.250 10/02/23 EUR 47.28 6.880 05/22/38 EUR 46.97 6.880 05/20/58 GBP 67.85 Azovstal 9.130 02/28/11 USD 37.55 Barcklays Bk Plc 9.750 09/30/09 GBP 52.59 5.750 09/14/26 EUR 74.20 Beazley Group 7.250 10/17/26 GBP 69.04 British Airways Plc 8.750 08/23/16 GBP 73.88 British Land Co 5.360 03/31/28 GBP 76.31 5.360 03/31/28 GBP 73.64 5.010 09/24/35 GBP 71.57 Broadgate Finance Plc 4.850 04/05/31 GBP 73.55 5.000 10/05/31 GBP 66.87 5.100 04/05/33 GBP 59.29 4.820 07/05/33 GBP 70.87 CGNU Plc 6.130 11/16/26 GBP 59.72 Heating Finance 7.880 03/31/14 GBP 38.75 ********* 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., Frederick, Maryland USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Pius Xerxes V. Tovilla, Joy A. Agravante, Marie Therese V. Profetana and Peter A. Chapman, Editors. Copyright 2009. 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$625 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 Christopher Beard at 240/629-3300. * * * End of Transmission * * *