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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

             Monday, June 29, 2009, Vol. 10, No. 126

                            Headlines

A U S T R I A

ATB MONTAGE: Creditors Must File Claims by July 22
CONCRETE SEARCH: Creditors Must File Claims by July 22
G.A.T. GMBH: Creditors Must File Claims by July 28


B U L G A R I A

* BULGARIA: May Seek IMF Bailout, RBS's Timothy Ash Says


E S T O N I A

BIGBANK: Moody's Lowers Bank Financial Strength Rating to 'E'


G E O R G I A

* GEORGIA: Kakha Bendukidze Says Economy to Shrink 5% in 2009


I R E L A N D

ASGARD CDO: Moody's Junks Ratings on Ten Classes of Notes
LITTLE BIRD: Goes Into Liquidation After Failed Restructuring
STRAWINSKY I: Moody's Lowers Rating on Class E Notes to 'C'


I T A L Y

SAFILO SPA: Increased Default Risk Cues Fitch to Junk Ratings


K Y R G Y Z S T A N

PERFORMIA KG: Creditors Must File Claims by July 24


L A T V I A

BALTIC INT'L: Moody's Affirms 'E+' Bank Financial Strength Rating
MORTGAGE AND LAND: Moody's Cuts Bank Fin'l Strength Rating to 'E+'
NORVIK BANKA: Moody's Cuts Bank Financial Strength Rating to 'E+'
TRASTA KOMERCBANKA: Moody's Affirms 'E+' Financial Strength Rating

* LATVIA: Lacks Int'l Reserves to Cover Debts, World Bank Says


L I T H U A N I A

SIAULIU BANKAS: Moody's Lowers Bank Fin'l Strength Rating to 'D-'

* LITHUANIA: Economy to Shrink 16% This Year, IMF Says


N E T H E R L A N D S

AMSTEL SECURITISATION: Moody's Keeps 'Ba2' Rating on Class E Notes


R U S S I A

EUROKOMMERZ HOLDING: Moody's Cuts Currency Issuer Ratings to 'C'
LESOSIBIRSKIY COLOPHONY: Creditors Must File Claims by July 22
MOLDED STRIPS: Creditors Must File Claims by July 5
MUNICIPAL COMMERCIAL: Creditors Must File Claims by July 22
ORLOVSKIY HARVESTER: Court Names I.Churkina as Insolvency Manager

SOVCOMBANK: Moody's Withdraws 'E' Bank Financial Strength Rating


S W I T Z E R L A N D

BOERLIN AG: Creditors Must File Claims by July 31
CLOCK FINANCE: Moody's Confirms B3 Ratings on Two Classes of Notes
FRICK MALEREI: Creditors Have Until August 3 to File Claims


U K R A I N E

BALTIYA LLC: Court Starts Bankruptcy Supervision Procedure
DRUZHBA LLC: Creditors Must File Claims by July 1
INDUSTRIAL UNION-SP: Creditors Must File Claims by July 1
MCKEVER HOTEL: Goes Into Administration
OLTIS LLC: Creditors Must File Claims by July 1

U PHARMA: Creditors Must File Claims by July 1


U N I T E D   K I N G D O M

BIRTHDAYS: Clinton Cards Buys 196 Stores Out of Administration
CATALYST HEALTHCARE: S&P Cuts Corporate Credit Rating to 'BB+'
DAWSON HOLDINGS: Enters Into "Standstill Agreement" w/ Creditors
HIGH TIDE: Moody's Cuts Rating on EUR17 Mil. Class B Notes to 'Ca'
ITV PLC: Bondholders Accept Exchange Offer to Reduce Debt

NOVUS LEISURE: Faces Refinancing; Lending Banks to Take Big Stake
TATA STEEL: Corus Unit to Cut Further 2,045 Jobs

* BOND PRICING: For the Week June 22 to June 26, 2009


                         *********


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


ATB MONTAGE: Creditors Must File Claims by July 22
--------------------------------------------------
Creditors of ATB Montage GmbH have until July 22, 2009, to file
their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 5, 2009 at 9:30 a.m.

For further information, contact the company's administrator:

         Dr. Peter Pullez
         Tuchlauben 8
         1010 Vienna
         Austria
         Tel: 513 29 79
         Fax: DW 25
         E-mail: pullezgschwandtner@aon.at


CONCRETE SEARCH: Creditors Must File Claims by July 22
------------------------------------------------------
Creditors of Concrete Search GmbH have until July 22, 2009, to
file their proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 5, 2009 at 10:10 a.m.

For further information, contact the company's administrator:

         Mag. Beate Holper
         Gonzagagasse 15
         1010 Vienna
         Austria
         Tel: 533 28 55
         Fax: DW 28
         E-mail: office@anwaltwien.at


G.A.T. GMBH: Creditors Must File Claims by July 28
--------------------------------------------------
Creditors of G.A.T. GmbH have until July 28, 2009, to file their
proofs of claim.

A court hearing for examination of the claims has been scheduled
for August 11, 2009 at 9:30 a.m. at:

         Land Court of Linz
         Room 522
         Linz
         Austria

For further information, contact the company's administrator:

         Ing. Mag. Wilhelm Hermann Deutschmann
         Stelzhamerstrasse 12/3
         4020 Linz
         Austria
         Tel: 0732 602080
         Fax: 0732 60208020
         E-mail: info@df-ra.at


===============
B U L G A R I A
===============


* BULGARIA: May Seek IMF Bailout, RBS's Timothy Ash Says
--------------------------------------------------------
Laura Cochrane at Bloomberg News reports that according to Timothy
Ash, head of emerging-market economics at Royal Bank of Scotland
Group Plc in London, Bulgaria is likely seek bailout loans from
the International Monetary Fund.

Bloomberg News relates the World Bank on June 22 said that the
country, whose US$50 billion economy shrank an annual 3.5 percent
in the first quarter, lacks enough international reserves to cover
debts coming due this year.

According Bloomberg News' Elizabeth Konstantinova, the World said
in a report on June 22 that Bulgaria's short-term debt was about
100 percent of its US$16 billion reserves in February.  Bloomerg
News says Bulgaria is among the most vulnerable in the eastern
European region as it has fixed exchange rates in systems that
limit its central bank's ability to adjust monetary policy.


=============
E S T O N I A
=============


BIGBANK: Moody's Lowers Bank Financial Strength Rating to 'E'
-------------------------------------------------------------
Moody's Investors Service downgraded the ratings of six Baltic
banks.  The affected entities are Baltic International Bank
(Latvia), BIGBANK (Estonia), Norvik Banka (Latvia), Siauliu Bankas
(Lithuania) and Trasta Komercbanka (Latvia), with the BFSR of
Mortgage and Land Bank of Latvia also being downgraded, while its
long-term foreign currency deposit rating was confirmed.

The downgrades conclude the review process for the six banks that
was initiated on June 8, 2009, although Moody's notes that the
long-term debt and deposit ratings of Parex Bank and Swedbank AS
remain on review for possible downgrade.  These reviews were
initiated on May 11, 2009 and April 27, respectively, and both are
expected to be concluded in the next month following the release
of further information on Parex Bank and the conclusion of the
review on Swedbank AS's parent bank, Swedbank AB.

The full list of rating actions can be found below.

The rating actions are driven by the speed and depth of the
deterioration of the Baltic economies (Estonia, Latvia and
Lithuania) and its impact on the banks' standalone
creditworthiness, as measured by their bank financial strength
ratings.  With the three economies in deep recession, corporate
defaults are rising and Moody's expects this to lead to
significantly increased losses on the banks' corporate loan
portfolios.  Moreover, the rating agency expects delinquencies in
the banks' retail portfolios to rise, reflecting higher
unemployment, lower income levels and a likely further decline in
house prices.

Moody's expects these potential losses and substantial
provisioning needs to weaken Baltic banks' profitability and
capital positions over the next two years.  The declining
profitability trends were already seen in the banks' Q1
financials.  Also, a significant deterioration in asset quality
ratio indicators was visible in 2008 and has continued this year.

Moody's notes, however, that the banks' funding positions remain
relatively comfortable with customer deposits being the major
source of funding for most of the entities.  However, the fierce
competition for deposits will exert pressure on some of the banks'
funding.  In particular, the rating agency remains concerned about
the future prospects of those banks that are reliant on non-
resident deposits for funding.  A business model that mainly
relies on non-resident business could potentially be adversely
affected in the ongoing financial crisis.

Moody's has incorporated expected losses on bank loan portfolios
into its ratings for some time, but the weight that it attaches to
certain rating considerations, particularly capital and future
earnings prospects, has been increased to better reflect the
present conditions.  This approach is consistent with Moody's
reports "Calibrating Bank Ratings in the Context of the Global
Financial Crisis" and "Moody's Approach to Estimating Bank Credit
Losses and their Impact on Bank Financial Strength Ratings",
published in February and May, respectively, this year.

Moody's notes that there has been speculation that the Bank of
Latvia may be forced to devalue the lat and outlined its opinion
on a devaluation scenario in a recently published Special Comment
entitled, "Living on the edge: Latvian devaluation speculation and
implications for the sovereign rating".

Although the probability of a devaluation has recently declined
due to the Latvian parliament's approval of a fiscal package that
was welcomed by the EU and IMF, Moody's stresses that a
devaluation cannot be ruled out completely, as economic and social
pressure in Latvia will continue to be high for some time.

Therefore, Moody's already incorporates a moderate risk of a
devaluation into its estimates of expected bank credit losses.
However, the ratings of some banks would likely be downgraded
further if the risk of a devaluation were to increase.  The rating
agency notes that a devaluation would lead to a further
deterioration in the banks' asset quality, given the significant
amount of loans in foreign currency.  On average, foreign-exchange
loans account for around 90% of the Moody's rated banks' total
customer loans.

The long-term deposit and debt ratings of all the rated Baltic
banks carry negative outlooks, reflecting the negative outlook
that Moody's has placed on all three banking systems.

                        The Rating Actions

Moody's took these rating actions on the Baltic banks:

                     Baltic International Bank

Baltic International Bank's E+ BFSR was affirmed, but now maps to
a BCA of B3 (from B2).  Consequently, the bank's long-term local
and foreign currency deposit ratings were downgraded to B3 from
B2. The Not Prime short-term rating was affirmed.  The E+ BFSR and
the B3 long-term local and foreign currency deposit ratings carry
a negative outlook.

The lowering of the bank's BCA reflects its relatively low capital
level with a capital adequacy ratio of 10.4% at end-March 2009,
which raises its vulnerability to prolonged stress.  While
acknowledging the bank's relatively small loan portfolio when
compared with that of its Baltic peers (25% of total assets),
there was a significant increase in problem loans last year.  In
addition to weakening asset quality, further concerns relate to
the bank's loan portfolio concentrations to the real estate
sector.  The downgrade also reflects Moody's concerns about how
the ongoing recession could affect the bank's business model,
which is primarily focused on private banking and non-resident
business.

                             BIGBANK

Moody's downgraded BIGBANK's BFSR to E (mapping to the BCA of
Caa1) with stable outlook from E+ (mapping to the BCA of B1).  The
bank's long-term deposit rating was downgraded to Caa1 with a
negative outlook from B1 following the downgrade of the BFSR.  The
Not Prime short-term deposit rating was affirmed.

The magnitude of the downgrade and the negative outlook reflects
Moody's view that BIGBANK's capital position will come under
significant pressure in the short term because of its 100%
exposure to higher-risk consumer finance.  Although the bank's
total capital adequacy ratio was 19.2% at the end of March 2009,
Moody's expects that future credit costs in its consumer loan book
will lead to a significant risk of the bank becoming
undercapitalized.  Moody's notes that the bank reported an
exceptionally high problem loan ratio of 43% at the end of March
2009, a rapid increase from 18% at the beginning of 2008.  The
rating agency adds that the downgrade reflects its expectation
that the bank's capital cushion under financial covenants will
narrow as it limits deterioration in the capital adequacy ratio to
15%.

                 Mortgage and Land Bank of Latvia

Moody's confirmed MLBL's long-term foreign currency deposit rating
at Baa3 and downgraded its BFSR to E+ with a stable outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).
MLBL's long-term foreign currency deposit rating is at the same
level as the Latvian sovereign bond rating of Baa3.  The outlook
on the Baa3 long-term deposit rating is negative, in line with the
negative outlook on the Latvian sovereign rating.  The Prime-3
short-term rating was confirmed.

The downgrade of the BFSR reflects the bank's weakened
profitability and asset quality.  It also reflects Moody's
expectation of potential losses associated with the bank's
significant exposure to the property sector and SMEs.  In
particular, this is in light of the bank's low loan loss reserves,
which provided a low 16% coverage of problem loans at the end of
2008.  Furthermore, the bank has reported a rapid increase in
problem loans, which accounted for 8.6% of gross loans at the end
of 2008 compared with 2.7% at the end of 2007.

Commenting on keeping MLBL's long-term foreign currency deposit
rating at the same level as the government bond rating, Moody's
notes the government's very high commitment to support the bank.
This commitment is demonstrated by: (i) capital injections in the
past, most recently in January 2009 amounting to LVL29 million
(US$59 million), and the planned LVL43 million (US$87 million) in
July 2009; (ii) the fact that the bank is wholly owned by the
Latvian government (the Ministry of Finance, specifically); and
(iii) the bank's important role as the sole development bank in
Latvia and its role as a contributor of state funds to the SME
sector.  Also, supporting this view, Moody's understands that the
bank is in the process of being transformed into a pure
development bank.  Accordingly, the rating agency continues to
assess the probability of government support as very high and
consequently expects that state support would be forthcoming if
necessary.

                           Norvik Banka

Moody's downgraded Norvik Banka's BFSR to E+ with negative outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).  The
bank's local and foreign currency deposit ratings were downgraded
to B1 from Ba3, due to the downgrade of the BFSR, also with a
negative outlook.  The Not Prime short-term rating was affirmed.

The downgrade reflects the potential losses stemming from the
bank's relatively concentrated corporate portfolio and reduced
level of profitability compared with previous years.  While
acknowledging the bank's higher-than-average capital ratio of
14.2% at the end of March 2009, Moody's notes that its loan book
exhibits concentrations to shipping and consumer finance, which
have the potential to generate large losses in the current
environment.  Also of concern is the swift growth of problem
loans, which accounted for 12.5% of gross loans at the end of
2008, up from 1.5% at the beginning of the same year.

                          Siauliu Bankas

Moody's downgraded Siauliu Bankas's BFSR to D- (mapping to a BCA
of Ba3) with negative outlook from D (mapping to a BCA of Ba2).
The local and foreign currency deposit ratings were also
downgraded to Ba3 with negative outlook from Ba2 following the
downgrade of the BFSR.  The Not Prime short-term rating was
affirmed.

The downgrade and negative outlook reflect Moody's view that the
bank's profitability and asset quality is expected to be severely
impacted by the ongoing economic downturn due its sizeable
exposure to SMEs and the real estate sector, which are being
adversely affected by the recession.  However, Moody's notes that
the bank's customer loan portfolio is not exposed to foreign-
exchange risk to the same extent as its Latvian peers.  Also,
standing at 15.9% at the end of March 2009, the bank reports one
of the highest capital adequacy ratios in the Baltic region.

                        Trasta Komerbanka

Trasta Komercbanka's E+ BFSR was affirmed, but now maps to a BCA
of B3, down from B2.  Consequently, the bank's long-term local and
foreign currency deposit ratings were downgraded to B3 from B2.
The Not Prime short-term rating was affirmed.  All the ratings
carry a negative outlook.

The lowering of the bank's BCA incorporates its relatively weak
capital level, which raises its vulnerability to prolonged stress,
as well as its rapid asset growth over the past few years.
Although the bank's loan portfolio accounted for a relatively low
44% of total assets at the end of 2008, potential losses
associated with its significant exposure to the property sector
are a cause for concern.  Furthermore, the downgrade also reflects
Moody's concerns about how the ongoing recession will affect the
bank's business model, which is primarily focused on non-resident
business.

Moody's last rating action on Baltic International Bank was on
June 8, 2009, when Moody's placed its long-term local and foreign
currency deposit ratings on review for possible downgrade.

Moody's last rating action on BIGBANK was on June 8, 2009, when
Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Mortgage and Land Bank of Latvia was
on June 8, 2009, when Moody's placed its ratings on review for
possible downgrade.

Moody's last rating action on Norvik Banka was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Siauliu Bankas was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Trasta Komercbanka was on June 8,
2009, when Moody's placed its long-term local and foreign currency
deposit ratings on review for possible downgrade.

Baltic International Bank is headquartered in Riga, Latvia, and
reported consolidated total assets of LVL0.167 billion
(EUR0.24 billion) at the end of December 2008.

BIGBANK is headquartered in Tallinn, Estonia, and reported
consolidated total assets of EEK2.9 billion (EUR0.18 billion) at
the end of December 2008.

Mortgage and Land Bank of Latvia is headquartered in Riga, Latvia,
and reported total assets of LVL969 million (EUR1.4 billion) at
the end of December 2008.

Norvik Banka is headquartered in Riga, Latvia, and reported total
assets of LVL506 million (EUR0.7 billion) at the end of December
2008.

Siauliu Bankas is headquartered in Siauliu, Lithuania, and
reported total assets of LTL2.1 billion (EUR0.6 billion) at the
end of December 2008.

Trasta Komercbanka is headquartered in Riga, Latvia, and reported
consolidated total assets of LVL0.28 billion (EUR0.4 billion) at
the end of December 2008.


=============
G E O R G I A
=============


* GEORGIA: Kakha Bendukidze Says Economy to Shrink 5% in 2009
-------------------------------------------------------------
Helena Bedwell at Bloomberg News reports that according to
Georgia's ex-Economic Development Minister Kakha Bendukidze, the
country's economy may shrink as much as 5 percent in 2009.

"I have concluded that the economy will contract 5 percent because
of  the political situation and global developments,"
Mr. Bendukidze told Bloomberg News by telephone on June 21 in the
capital of Tbilisi.  "That's not good for Georgia, but not bad
compared with many European countries."

Bloomberg News recalls Prime Minister Nika Gilauri said on June 1
that Georgia's economy may contract as much as 1.5 percent this
year after the country entered a recession in the fourth quarter
of 2008.  One week later, Finance Minister Kakha Baindurashvili
said Georgia's recession was deepening at an "alarming" rate in
the second quarter and blamed the opposition's "street politics"
for the decline, Bloomerg News relates.


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


ASGARD CDO: Moody's Junks Ratings on Ten Classes of Notes
---------------------------------------------------------
Moody's Investors Service has downgraded its ratings of ten
classes of notes issued by Asgard CDO plc.

The transaction is a synthetic CDO^2 referencing six managed
bespoke corporate CDOs and ABSs, mainly European RMBS of 2002—2003
vintages.  The rating action is a response to deterioration in the
credit quality of the transaction's reference portfolio, in a
significant proportion, in the corporate entities.  According to
Moody's, 28% of the corporate reference pool suffered a downward
credit rating migration greater than had been anticipated by its
forward looking measures, in its February review.  These include,
but are not limited to, multiple notch downgrades of monoline
insurance companies.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports and press releases below:

  -- Moody's Approach To Rating Corporate Collateralized Synthetic
     Obligations (April 2009)

The rating actions are:

Asgard CDO plc:

(1) EUR327,000,000 Series A Euro Floating Rate Credit Linked
    Secured Notes due 2011

  -- Current Rating: Caa1

  -- Prior Rating: Ba3, on review for downgrade

  -- Prior Rating Date: 9 June 2009, Ba3 rating placed on review
     for downgrade

(2) GBP2,000,000 Series A Sterling Floating Rate Credit Linked
    Secured Notes due 2011

  -- Current Rating: Caa1

  -- Prior Rating: Ba3, on review for downgrade

  -- Prior Rating Date: 9 June 2009, Ba3 rating placed on review
     for downgrade

(3) CHF6,000,000 Series A Swiss Franc Floating Rate Credit Linked
    Secured Notes due 2011

  -- Current Rating: Caa1

  -- Prior Rating: Ba3, on review for downgrade

  -- Prior Rating Date: 9 June 2009, Ba3 rating placed on review
     for downgrade

(4) EUR125,000,000 Series B Euro Floating Rate Credit Linked
    Secured Notes due 2011

  -- Current Rating: Caa1

  -- Prior Rating: B1, on review for downgrade

  -- Prior Rating Date: 9 June 2009, B1 rating placed on review
     for downgrade

(5) GBP2,000,000 Series B Sterling Floating Rate Credit Linked
    Secured Notes due 2011

  -- Current Rating: Caa1

  -- Prior Rating: B1, on review for downgrade

  -- Prior Rating Date: 9 June 2009, B1 rating placed on review
     for downgrade

(6) NZD10,000,000 Series B New Zealand Dollar Floating Rate Credit
    Linked Secured Notes due 2011

  -- Current Rating: Caa1

  -- Prior Rating: B1, on review for downgrade

  -- Prior Rating Date: 9 June 2009, B1 rating placed on review
     for downgrade

(7) US$20,000,000 Series B Dollar Floating Rate Credit Linked
    Secured Notes due 2011

  -- Current Rating: Caa1

  -- Prior Rating: B1, on review for downgrade

  -- Prior Rating Date: 9 June 2009, B1 rating placed on review
     for downgrade

(8) US$10,000,000 Series C Dollar Floating Rate Credit Linked
    Secured Notes due 2011

  -- Current Rating: Caa2

  -- Prior Rating: B2, on review for downgrade

  -- Prior Rating Date: 9 June 2009, B2 rating placed on review
     for downgrade

(9) CHF5,000,000 Series C Swiss Franc Floating Rate Credit Linked
    Secured Notes due 2011

  -- Current Rating: Caa2

  -- Prior Rating: B2, on review for downgrade

  -- Prior Rating Date: 9 June 2009, B2 rating placed on review
     for downgrade

(10) EUR7,500,000 Series D Euro Fixed Rate Credit Linked Secured
    Notes due 2011

  -- Current Rating: Caa3

  -- Prior Rating: B3, on review for downgrade

  -- Prior Rating Date: 9 June 2009, B3 rating placed on review
     for downgrade


LITTLE BIRD: Goes Into Liquidation After Failed Restructuring
-------------------------------------------------------------
The Irish Film Television Network reports that Little Bird
Holdings has gone into liquidation after failing to restructure in
receivership.

Little Bird, the report discloses, racked up debts of over
EUR3.5 million.

"We made significant losses in movie production and development
during the period 2000 to 2004, in recent months a number of
challenges -– some our own -– others not, like the collapse in
international equity markets, have made it difficult to refinance
Little Bird's business," the report quoted the company as saying.

According to the report, Kieran Wallace, the receiver, is in
negotiations with a British film company to sell Little Bird's
on-going productions and back catalogue rights to Irish television
series "On Home Ground" and "The Irish RM".

Based in Dublin, Little Bird Holdings -- http://www.littlebird.ie
-- comprises production companies in Dublin, London and
Johannesburg.


STRAWINSKY I: Moody's Lowers Rating on Class E Notes to 'C'
-----------------------------------------------------------
Moody's Investors Service has downgraded its ratings of seven
classes of notes issued by Strawinsky I PLC.  Three of the notes
remain on review for further possible downgrade.

This transaction is a managed cash leveraged loan collateralized
loan obligation with exposure to predominantly European senior
secured loans, as well as some mezzanine loan exposure.

According to Moody's, the rating actions taken on the notes are a
result of credit deterioration of the underlying portfolio.  This
is observed in, among other measures as per Trustee Report dated
May 11, 2009, a decline in the average credit rating as measured
through the weighted average rating factor (currently 3155), an
increase in the amount of defaulted securities (currently 9% of
the portfolio), an increase in the proportion of securities from
issuers rated Caa1 and below (currently 23.5% of the portfolio),
and a failure of all Par Value tests (including a deterioration of
the Class A/B Par Value Test from 117.6% in February 2009 to
108.62% in May 2009).  Moody's also performed a sensitivity
analysis, including amongst others, a further decline in portfolio
WARF quality combined with a decrease in the expected recovery
rates.

In addition, Moody's notes that, as the assets rated Caa1 and
below are carried at their market value for the purpose of
calculating the coverage numerator of the principal coverage
tests, a further deterioration of the credit quality of the
portfolio or a large fall in the market value of the Caa rated
assets could potentially trigger an event of default under the
notes due to the Class A/B Par Value Ratio falling below 100 per
cent.  Moody's left under review for possible downgrade the
classes of Notes that would be significantly affected by such an
Event of Default being triggered.

The rating actions also reflect Moody's revised assumptions with
respect to default probability and the calculation of the
Diversity Score as described in the press release dated
February 4, 2009, titled "Moody's updates key assumptions for
rating CLOs."  These revised assumptions have been applied to all
corporate credits in the underlying portfolio, the revised
assumptions for the treatment of ratings on "Review for Possible
Downgrade", "Review for Possible Upgrade", or with a "Negative
Outlook" being applied to those corporate credits that are
publicly rated.

Moody's also notes that a material proportion of the collateral
pool consists of debt obligations whose credit quality has been
assessed through Moody's Credit Estimates.  As credit estimates do
not carry credit indicators such as ratings reviews and outlooks,
a stress of a quarter notch-equivalent assumed downgrade was
applied to each of these estimates.

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

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 Special Reports and
press releases below:

  -- Moody's Approach to Rating Collateralized Loan Obligations
     (December 2008)

The rating actions are:

Strawinsky I PLC

  -- Class A1-T Senior Secured Floating Rate Notes, Downgraded to
     Aa2, previously on March 18, 2009 Aaa Placed under Review for
     Possible Downgrade

  -- Class A1-R Senior Secured Floating Rate Notes, Downgraded to
     Aa2, previously on March 18, 2009 Aaa Placed under Review for
     Possible Downgrade

  -- Class A2 Senior Secured Floating Rate Notes, Downgraded to
     Ba1, Placed under Review for Possible Downgrade previously on
     March 4, 2009 Aaa Placed under Review for Possible Downgrade

  -- Class B Senior Secured Floating Rate Notes, Downgraded to
     Ba3, Placed under Review for Possible Downgrade previously on
     March 4, 2009 Aa2 Placed under Review for Possible Downgrade

  -- Class C Senior Secured Deferrable Floating Rate Notes,
     Downgraded to Caa3, Placed under Review for Possible
     Downgrade previously on March 18, 2009 Ba3 Placed under
     Review for Possible Downgrade

  -- Class D Senior Secured Deferrable Floating Rate Notes,
     Downgraded to Ca, previously on March 18, 2009 B3 Placed
     under Review for Possible Downgrade

  -- Class E Senior Secured Deferrable Floating Rate Notes,
     Downgraded to C, previously on March 18, 2009 Caa3 Placed
     under Review for Possible Downgrade


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


SAFILO SPA: Increased Default Risk Cues Fitch to Junk Ratings
-------------------------------------------------------------
Fitch Ratings has downgraded Italy-based eyewear designer and
manufacturer Safilo S.p.A.'s  Long-term Issuer Default Rating to
'CC' from 'B-'.  Fitch has simultaneously downgraded Safilo's
EUR400 million senior credit facilities to 'B-'/'RR2' from
'B+'/'RR2' and Safilo Capital International S.A.'s EUR195 million
senior notes, due 2013, to 'C'/'RR6' from 'CC'/'RR6'.

The IDR remains on Rating Watch Negative and the instrument
ratings have also been placed on RWN. Safilo's Short-term IDR has
been downgraded to 'C' from 'B' and withdrawn.

The downgrade reflects an increased risk of default following
Safilo's announcement that it is negotiating with its lending
banks to postpone the payment of a EUR19 million principal
amortization due on June 30, 2009 under the EUR400 million senior
credit facilities, as well as a waiver on its financial covenants
on the June 30, 2009 test date.  If a waiver is obtained, or debt
amortization is rescheduled, the company, in Fitch's view, will
still remain vulnerable to a default at the next main scheduled
amortization and covenant test date in December 2009.

The RWN reflects Safilo's poor operational performance, the
continuing need to restructure the company's onerous debt
repayment schedule, uncertainty over covenant and amortization
negotiations, as well as a weakening liquidity profile.  Ratings
are likely to be downgraded further in the event of more severe
trading deterioration or if banks withdraw their support to
Safilo.  Also, Fitch will reassess the ratings upon clarification
of a new capital structure.

While, according to its press release of June 23, Safilo continues
to seek new financial resources in order to strengthen its capital
structure, no announcement has been made yet.  It is therefore
uncertain what impact a much needed new capital structure will
have on the timely payment or the structural position of the
current debt instruments.

However, given a difficult trading environment and the company's
thin liquidity and, even if Safilo is able to obtain a waiver by
30 June, its ability to avoid a default remains strongly reliant
on successful negotiation with new providers of capital and their
willingness to arrange a sustainable capital structure.

Safilo's business profile has proved very vulnerable to the global
economic crisis currently underway, nonetheless the agency
believes that given fresh liquidity and a restructured debt
profile, and anticipating a global recovery in the next two years,
the business should remain viable in the medium term, as one of
two global designer-manufacturers of licensed- and own-brand
eyewear.


===================
K Y R G Y Z S T A N
===================


PERFORMIA KG: Creditors Must File Claims by July 24
---------------------------------------------------
LLP Performia KG is currently undergoing liquidation.  Creditors
have until July 24, 2009 to submit proofs of claim to:

         Micro district Vostok 5, 8-32
         Bishkek
         Kyrgyzstan
         Tel: (+996 312) 37-75-16


===========
L A T V I A
===========


BALTIC INT'L: Moody's Affirms 'E+' Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of six Baltic
banks.  The affected entities are Baltic International Bank
(Latvia), BIGBANK (Estonia), Norvik Banka (Latvia), Siauliu Bankas
(Lithuania) and Trasta Komercbanka (Latvia), with the BFSR of
Mortgage and Land Bank of Latvia also being downgraded, while its
long-term foreign currency deposit rating was confirmed.

The downgrades conclude the review process for the six banks that
was initiated on June 8, 2009, although Moody's notes that the
long-term debt and deposit ratings of Parex Bank and Swedbank AS
remain on review for possible downgrade.  These reviews were
initiated on May 11, 2009 and April 27, respectively, and both are
expected to be concluded in the next month following the release
of further information on Parex Bank and the conclusion of the
review on Swedbank AS's parent bank, Swedbank AB.

The full list of rating actions can be found below.

The rating actions are driven by the speed and depth of the
deterioration of the Baltic economies (Estonia, Latvia and
Lithuania) and its impact on the banks' standalone
creditworthiness, as measured by their bank financial strength
ratings.  With the three economies in deep recession, corporate
defaults are rising and Moody's expects this to lead to
significantly increased losses on the banks' corporate loan
portfolios.  Moreover, the rating agency expects delinquencies in
the banks' retail portfolios to rise, reflecting higher
unemployment, lower income levels and a likely further decline in
house prices.

Moody's expects these potential losses and substantial
provisioning needs to weaken Baltic banks' profitability and
capital positions over the next two years.  The declining
profitability trends were already seen in the banks' Q1
financials.  Also, a significant deterioration in asset quality
ratio indicators was visible in 2008 and has continued this year.

Moody's notes, however, that the banks' funding positions remain
relatively comfortable with customer deposits being the major
source of funding for most of the entities.  However, the fierce
competition for deposits will exert pressure on some of the banks'
funding.  In particular, the rating agency remains concerned about
the future prospects of those banks that are reliant on non-
resident deposits for funding.  A business model that mainly
relies on non-resident business could potentially be adversely
affected in the ongoing financial crisis.

Moody's has incorporated expected losses on bank loan portfolios
into its ratings for some time, but the weight that it attaches to
certain rating considerations, particularly capital and future
earnings prospects, has been increased to better reflect the
present conditions.  This approach is consistent with Moody's
reports "Calibrating Bank Ratings in the Context of the Global
Financial Crisis" and "Moody's Approach to Estimating Bank Credit
Losses and their Impact on Bank Financial Strength Ratings",
published in February and May, respectively, this year.

Moody's notes that there has been speculation that the Bank of
Latvia may be forced to devalue the lat and outlined its opinion
on a devaluation scenario in a recently published Special Comment
entitled, "Living on the edge: Latvian devaluation speculation and
implications for the sovereign rating".

Although the probability of a devaluation has recently declined
due to the Latvian parliament's approval of a fiscal package that
was welcomed by the EU and IMF, Moody's stresses that a
devaluation cannot be ruled out completely, as economic and social
pressure in Latvia will continue to be high for some time.

Therefore, Moody's already incorporates a moderate risk of a
devaluation into its estimates of expected bank credit losses.
However, the ratings of some banks would likely be downgraded
further if the risk of a devaluation were to increase.  The rating
agency notes that a devaluation would lead to a further
deterioration in the banks' asset quality, given the significant
amount of loans in foreign currency.  On average, foreign-exchange
loans account for around 90% of the Moody's rated banks' total
customer loans.

The long-term deposit and debt ratings of all the rated Baltic
banks carry negative outlooks, reflecting the negative outlook
that Moody's has placed on all three banking systems.

                        The Rating Actions

Moody's took these rating actions on the Baltic banks:

                     Baltic International Bank

Baltic International Bank's E+ BFSR was affirmed, but now maps to
a BCA of B3 (from B2).  Consequently, the bank's long-term local
and foreign currency deposit ratings were downgraded to B3 from
B2. The Not Prime short-term rating was affirmed.  The E+ BFSR and
the B3 long-term local and foreign currency deposit ratings carry
a negative outlook.

The lowering of the bank's BCA reflects its relatively low capital
level with a capital adequacy ratio of 10.4% at end-March 2009,
which raises its vulnerability to prolonged stress.  While
acknowledging the bank's relatively small loan portfolio when
compared with that of its Baltic peers (25% of total assets),
there was a significant increase in problem loans last year.  In
addition to weakening asset quality, further concerns relate to
the bank's loan portfolio concentrations to the real estate
sector.  The downgrade also reflects Moody's concerns about how
the ongoing recession could affect the bank's business model,
which is primarily focused on private banking and non-resident
business.

                             BIGBANK

Moody's downgraded BIGBANK's BFSR to E (mapping to the BCA of
Caa1) with stable outlook from E+ (mapping to the BCA of B1).  The
bank's long-term deposit rating was downgraded to Caa1 with a
negative outlook from B1 following the downgrade of the BFSR.  The
Not Prime short-term deposit rating was affirmed.

The magnitude of the downgrade and the negative outlook reflects
Moody's view that BIGBANK's capital position will come under
significant pressure in the short term because of its 100%
exposure to higher-risk consumer finance.  Although the bank's
total capital adequacy ratio was 19.2% at the end of March 2009,
Moody's expects that future credit costs in its consumer loan book
will lead to a significant risk of the bank becoming
undercapitalized.  Moody's notes that the bank reported an
exceptionally high problem loan ratio of 43% at the end of March
2009, a rapid increase from 18% at the beginning of 2008.  The
rating agency adds that the downgrade reflects its expectation
that the bank's capital cushion under financial covenants will
narrow as it limits deterioration in the capital adequacy ratio to
15%.

                 Mortgage and Land Bank of Latvia

Moody's confirmed MLBL's long-term foreign currency deposit rating
at Baa3 and downgraded its BFSR to E+ with a stable outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).
MLBL's long-term foreign currency deposit rating is at the same
level as the Latvian sovereign bond rating of Baa3.  The outlook
on the Baa3 long-term deposit rating is negative, in line with the
negative outlook on the Latvian sovereign rating.  The Prime-3
short-term rating was confirmed.

The downgrade of the BFSR reflects the bank's weakened
profitability and asset quality.  It also reflects Moody's
expectation of potential losses associated with the bank's
significant exposure to the property sector and SMEs.  In
particular, this is in light of the bank's low loan loss reserves,
which provided a low 16% coverage of problem loans at the end of
2008.  Furthermore, the bank has reported a rapid increase in
problem loans, which accounted for 8.6% of gross loans at the end
of 2008 compared with 2.7% at the end of 2007.

Commenting on keeping MLBL's long-term foreign currency deposit
rating at the same level as the government bond rating, Moody's
notes the government's very high commitment to support the bank.
This commitment is demonstrated by: (i) capital injections in the
past, most recently in January 2009 amounting to LVL29 million
(US$59 million), and the planned LVL43 million (US$87 million) in
July 2009; (ii) the fact that the bank is wholly owned by the
Latvian government (the Ministry of Finance, specifically); and
(iii) the bank's important role as the sole development bank in
Latvia and its role as a contributor of state funds to the SME
sector.  Also, supporting this view, Moody's understands that the
bank is in the process of being transformed into a pure
development bank.  Accordingly, the rating agency continues to
assess the probability of government support as very high and
consequently expects that state support would be forthcoming if
necessary.

                           Norvik Banka

Moody's downgraded Norvik Banka's BFSR to E+ with negative outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).  The
bank's local and foreign currency deposit ratings were downgraded
to B1 from Ba3, due to the downgrade of the BFSR, also with a
negative outlook.  The Not Prime short-term rating was affirmed.

The downgrade reflects the potential losses stemming from the
bank's relatively concentrated corporate portfolio and reduced
level of profitability compared with previous years.  While
acknowledging the bank's higher-than-average capital ratio of
14.2% at the end of March 2009, Moody's notes that its loan book
exhibits concentrations to shipping and consumer finance, which
have the potential to generate large losses in the current
environment.  Also of concern is the swift growth of problem
loans, which accounted for 12.5% of gross loans at the end of
2008, up from 1.5% at the beginning of the same year.

                          Siauliu Bankas

Moody's downgraded Siauliu Bankas's BFSR to D- (mapping to a BCA
of Ba3) with negative outlook from D (mapping to a BCA of Ba2).
The local and foreign currency deposit ratings were also
downgraded to Ba3 with negative outlook from Ba2 following the
downgrade of the BFSR.  The Not Prime short-term rating was
affirmed.

The downgrade and negative outlook reflect Moody's view that the
bank's profitability and asset quality is expected to be severely
impacted by the ongoing economic downturn due its sizeable
exposure to SMEs and the real estate sector, which are being
adversely affected by the recession.  However, Moody's notes that
the bank's customer loan portfolio is not exposed to foreign-
exchange risk to the same extent as its Latvian peers.  Also,
standing at 15.9% at the end of March 2009, the bank reports one
of the highest capital adequacy ratios in the Baltic region.

                        Trasta Komerbanka

Trasta Komercbanka's E+ BFSR was affirmed, but now maps to a BCA
of B3, down from B2.  Consequently, the bank's long-term local and
foreign currency deposit ratings were downgraded to B3 from B2.
The Not Prime short-term rating was affirmed.  All the ratings
carry a negative outlook.

The lowering of the bank's BCA incorporates its relatively weak
capital level, which raises its vulnerability to prolonged stress,
as well as its rapid asset growth over the past few years.
Although the bank's loan portfolio accounted for a relatively low
44% of total assets at the end of 2008, potential losses
associated with its significant exposure to the property sector
are a cause for concern.  Furthermore, the downgrade also reflects
Moody's concerns about how the ongoing recession will affect the
bank's business model, which is primarily focused on non-resident
business.

Moody's last rating action on Baltic International Bank was on
June 8, 2009, when Moody's placed its long-term local and foreign
currency deposit ratings on review for possible downgrade.

Moody's last rating action on BIGBANK was on June 8, 2009, when
Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Mortgage and Land Bank of Latvia was
on June 8, 2009, when Moody's placed its ratings on review for
possible downgrade.

Moody's last rating action on Norvik Banka was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Siauliu Bankas was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Trasta Komercbanka was on June 8,
2009, when Moody's placed its long-term local and foreign currency
deposit ratings on review for possible downgrade.

Baltic International Bank is headquartered in Riga, Latvia, and
reported consolidated total assets of LVL0.167 billion
(EUR0.24 billion) at the end of December 2008.

BIGBANK is headquartered in Tallinn, Estonia, and reported
consolidated total assets of EEK2.9 billion (EUR0.18 billion) at
the end of December 2008.

Mortgage and Land Bank of Latvia is headquartered in Riga, Latvia,
and reported total assets of LVL969 million (EUR1.4 billion) at
the end of December 2008.

Norvik Banka is headquartered in Riga, Latvia, and reported total
assets of LVL506 million (EUR0.7 billion) at the end of December
2008.

Siauliu Bankas is headquartered in Siauliu, Lithuania, and
reported total assets of LTL2.1 billion (EUR0.6 billion) at the
end of December 2008.

Trasta Komercbanka is headquartered in Riga, Latvia, and reported
consolidated total assets of LVL0.28 billion (EUR0.4 billion) at
the end of December 2008.


MORTGAGE AND LAND: Moody's Cuts Bank Fin'l Strength Rating to 'E+'
------------------------------------------------------------------
Moody's Investors Service downgraded the ratings of six Baltic
banks.  The affected entities are Baltic International Bank
(Latvia), BIGBANK (Estonia), Norvik Banka (Latvia), Siauliu Bankas
(Lithuania) and Trasta Komercbanka (Latvia), with the BFSR of
Mortgage and Land Bank of Latvia also being downgraded, while its
long-term foreign currency deposit rating was confirmed.

The downgrades conclude the review process for the six banks that
was initiated on June 8, 2009, although Moody's notes that the
long-term debt and deposit ratings of Parex Bank and Swedbank AS
remain on review for possible downgrade.  These reviews were
initiated on May 11, 2009 and April 27, respectively, and both are
expected to be concluded in the next month following the release
of further information on Parex Bank and the conclusion of the
review on Swedbank AS's parent bank, Swedbank AB.

The full list of rating actions can be found below.

The rating actions are driven by the speed and depth of the
deterioration of the Baltic economies (Estonia, Latvia and
Lithuania) and its impact on the banks' standalone
creditworthiness, as measured by their bank financial strength
ratings.  With the three economies in deep recession, corporate
defaults are rising and Moody's expects this to lead to
significantly increased losses on the banks' corporate loan
portfolios.  Moreover, the rating agency expects delinquencies in
the banks' retail portfolios to rise, reflecting higher
unemployment, lower income levels and a likely further decline in
house prices.

Moody's expects these potential losses and substantial
provisioning needs to weaken Baltic banks' profitability and
capital positions over the next two years.  The declining
profitability trends were already seen in the banks' Q1
financials.  Also, a significant deterioration in asset quality
ratio indicators was visible in 2008 and has continued this year.

Moody's notes, however, that the banks' funding positions remain
relatively comfortable with customer deposits being the major
source of funding for most of the entities.  However, the fierce
competition for deposits will exert pressure on some of the banks'
funding.  In particular, the rating agency remains concerned about
the future prospects of those banks that are reliant on non-
resident deposits for funding.  A business model that mainly
relies on non-resident business could potentially be adversely
affected in the ongoing financial crisis.

Moody's has incorporated expected losses on bank loan portfolios
into its ratings for some time, but the weight that it attaches to
certain rating considerations, particularly capital and future
earnings prospects, has been increased to better reflect the
present conditions.  This approach is consistent with Moody's
reports "Calibrating Bank Ratings in the Context of the Global
Financial Crisis" and "Moody's Approach to Estimating Bank Credit
Losses and their Impact on Bank Financial Strength Ratings",
published in February and May, respectively, this year.

Moody's notes that there has been speculation that the Bank of
Latvia may be forced to devalue the lat and outlined its opinion
on a devaluation scenario in a recently published Special Comment
entitled, "Living on the edge: Latvian devaluation speculation and
implications for the sovereign rating".

Although the probability of a devaluation has recently declined
due to the Latvian parliament's approval of a fiscal package that
was welcomed by the EU and IMF, Moody's stresses that a
devaluation cannot be ruled out completely, as economic and social
pressure in Latvia will continue to be high for some time.

Therefore, Moody's already incorporates a moderate risk of a
devaluation into its estimates of expected bank credit losses.
However, the ratings of some banks would likely be downgraded
further if the risk of a devaluation were to increase.  The rating
agency notes that a devaluation would lead to a further
deterioration in the banks' asset quality, given the significant
amount of loans in foreign currency.  On average, foreign-exchange
loans account for around 90% of the Moody's rated banks' total
customer loans.

The long-term deposit and debt ratings of all the rated Baltic
banks carry negative outlooks, reflecting the negative outlook
that Moody's has placed on all three banking systems.

                        The Rating Actions

Moody's took these rating actions on the Baltic banks:

                     Baltic International Bank

Baltic International Bank's E+ BFSR was affirmed, but now maps to
a BCA of B3 (from B2).  Consequently, the bank's long-term local
and foreign currency deposit ratings were downgraded to B3 from
B2. The Not Prime short-term rating was affirmed.  The E+ BFSR and
the B3 long-term local and foreign currency deposit ratings carry
a negative outlook.

The lowering of the bank's BCA reflects its relatively low capital
level with a capital adequacy ratio of 10.4% at end-March 2009,
which raises its vulnerability to prolonged stress.  While
acknowledging the bank's relatively small loan portfolio when
compared with that of its Baltic peers (25% of total assets),
there was a significant increase in problem loans last year.  In
addition to weakening asset quality, further concerns relate to
the bank's loan portfolio concentrations to the real estate
sector.  The downgrade also reflects Moody's concerns about how
the ongoing recession could affect the bank's business model,
which is primarily focused on private banking and non-resident
business.

                             BIGBANK

Moody's downgraded BIGBANK's BFSR to E (mapping to the BCA of
Caa1) with stable outlook from E+ (mapping to the BCA of B1).  The
bank's long-term deposit rating was downgraded to Caa1 with a
negative outlook from B1 following the downgrade of the BFSR.  The
Not Prime short-term deposit rating was affirmed.

The magnitude of the downgrade and the negative outlook reflects
Moody's view that BIGBANK's capital position will come under
significant pressure in the short term because of its 100%
exposure to higher-risk consumer finance.  Although the bank's
total capital adequacy ratio was 19.2% at the end of March 2009,
Moody's expects that future credit costs in its consumer loan book
will lead to a significant risk of the bank becoming
undercapitalized.  Moody's notes that the bank reported an
exceptionally high problem loan ratio of 43% at the end of March
2009, a rapid increase from 18% at the beginning of 2008.  The
rating agency adds that the downgrade reflects its expectation
that the bank's capital cushion under financial covenants will
narrow as it limits deterioration in the capital adequacy ratio to
15%.

                 Mortgage and Land Bank of Latvia

Moody's confirmed MLBL's long-term foreign currency deposit rating
at Baa3 and downgraded its BFSR to E+ with a stable outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).
MLBL's long-term foreign currency deposit rating is at the same
level as the Latvian sovereign bond rating of Baa3.  The outlook
on the Baa3 long-term deposit rating is negative, in line with the
negative outlook on the Latvian sovereign rating.  The Prime-3
short-term rating was confirmed.

The downgrade of the BFSR reflects the bank's weakened
profitability and asset quality.  It also reflects Moody's
expectation of potential losses associated with the bank's
significant exposure to the property sector and SMEs.  In
particular, this is in light of the bank's low loan loss reserves,
which provided a low 16% coverage of problem loans at the end of
2008.  Furthermore, the bank has reported a rapid increase in
problem loans, which accounted for 8.6% of gross loans at the end
of 2008 compared with 2.7% at the end of 2007.

Commenting on keeping MLBL's long-term foreign currency deposit
rating at the same level as the government bond rating, Moody's
notes the government's very high commitment to support the bank.
This commitment is demonstrated by: (i) capital injections in the
past, most recently in January 2009 amounting to LVL29 million
(US$59 million), and the planned LVL43 million (US$87 million) in
July 2009; (ii) the fact that the bank is wholly owned by the
Latvian government (the Ministry of Finance, specifically); and
(iii) the bank's important role as the sole development bank in
Latvia and its role as a contributor of state funds to the SME
sector.  Also, supporting this view, Moody's understands that the
bank is in the process of being transformed into a pure
development bank.  Accordingly, the rating agency continues to
assess the probability of government support as very high and
consequently expects that state support would be forthcoming if
necessary.

                           Norvik Banka

Moody's downgraded Norvik Banka's BFSR to E+ with negative outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).  The
bank's local and foreign currency deposit ratings were downgraded
to B1 from Ba3, due to the downgrade of the BFSR, also with a
negative outlook.  The Not Prime short-term rating was affirmed.

The downgrade reflects the potential losses stemming from the
bank's relatively concentrated corporate portfolio and reduced
level of profitability compared with previous years.  While
acknowledging the bank's higher-than-average capital ratio of
14.2% at the end of March 2009, Moody's notes that its loan book
exhibits concentrations to shipping and consumer finance, which
have the potential to generate large losses in the current
environment.  Also of concern is the swift growth of problem
loans, which accounted for 12.5% of gross loans at the end of
2008, up from 1.5% at the beginning of the same year.

                          Siauliu Bankas

Moody's downgraded Siauliu Bankas's BFSR to D- (mapping to a BCA
of Ba3) with negative outlook from D (mapping to a BCA of Ba2).
The local and foreign currency deposit ratings were also
downgraded to Ba3 with negative outlook from Ba2 following the
downgrade of the BFSR.  The Not Prime short-term rating was
affirmed.

The downgrade and negative outlook reflect Moody's view that the
bank's profitability and asset quality is expected to be severely
impacted by the ongoing economic downturn due its sizeable
exposure to SMEs and the real estate sector, which are being
adversely affected by the recession.  However, Moody's notes that
the bank's customer loan portfolio is not exposed to foreign-
exchange risk to the same extent as its Latvian peers.  Also,
standing at 15.9% at the end of March 2009, the bank reports one
of the highest capital adequacy ratios in the Baltic region.

                        Trasta Komerbanka

Trasta Komercbanka's E+ BFSR was affirmed, but now maps to a BCA
of B3, down from B2.  Consequently, the bank's long-term local and
foreign currency deposit ratings were downgraded to B3 from B2.
The Not Prime short-term rating was affirmed.  All the ratings
carry a negative outlook.

The lowering of the bank's BCA incorporates its relatively weak
capital level, which raises its vulnerability to prolonged stress,
as well as its rapid asset growth over the past few years.
Although the bank's loan portfolio accounted for a relatively low
44% of total assets at the end of 2008, potential losses
associated with its significant exposure to the property sector
are a cause for concern.  Furthermore, the downgrade also reflects
Moody's concerns about how the ongoing recession will affect the
bank's business model, which is primarily focused on non-resident
business.

Moody's last rating action on Baltic International Bank was on
June 8, 2009, when Moody's placed its long-term local and foreign
currency deposit ratings on review for possible downgrade.

Moody's last rating action on BIGBANK was on June 8, 2009, when
Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Mortgage and Land Bank of Latvia was
on June 8, 2009, when Moody's placed its ratings on review for
possible downgrade.

Moody's last rating action on Norvik Banka was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Siauliu Bankas was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Trasta Komercbanka was on June 8,
2009, when Moody's placed its long-term local and foreign currency
deposit ratings on review for possible downgrade.

Baltic International Bank is headquartered in Riga, Latvia, and
reported consolidated total assets of LVL0.167 billion
(EUR0.24 billion) at the end of December 2008.

BIGBANK is headquartered in Tallinn, Estonia, and reported
consolidated total assets of EEK2.9 billion (EUR0.18 billion) at
the end of December 2008.

Mortgage and Land Bank of Latvia is headquartered in Riga, Latvia,
and reported total assets of LVL969 million (EUR1.4 billion) at
the end of December 2008.

Norvik Banka is headquartered in Riga, Latvia, and reported total
assets of LVL506 million (EUR0.7 billion) at the end of December
2008.

Siauliu Bankas is headquartered in Siauliu, Lithuania, and
reported total assets of LTL2.1 billion (EUR0.6 billion) at the
end of December 2008.

Trasta Komercbanka is headquartered in Riga, Latvia, and reported
consolidated total assets of LVL0.28 billion (EUR0.4 billion) at
the end of December 2008.


NORVIK BANKA: Moody's Cuts Bank Financial Strength Rating to 'E+'
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of six Baltic
banks.  The affected entities are Baltic International Bank
(Latvia), BIGBANK (Estonia), Norvik Banka (Latvia), Siauliu Bankas
(Lithuania) and Trasta Komercbanka (Latvia), with the BFSR of
Mortgage and Land Bank of Latvia also being downgraded, while its
long-term foreign currency deposit rating was confirmed.

The downgrades conclude the review process for the six banks that
was initiated on June 8, 2009, although Moody's notes that the
long-term debt and deposit ratings of Parex Bank and Swedbank AS
remain on review for possible downgrade.  These reviews were
initiated on May 11, 2009 and April 27, respectively, and both are
expected to be concluded in the next month following the release
of further information on Parex Bank and the conclusion of the
review on Swedbank AS's parent bank, Swedbank AB.

The full list of rating actions can be found below.

The rating actions are driven by the speed and depth of the
deterioration of the Baltic economies (Estonia, Latvia and
Lithuania) and its impact on the banks' standalone
creditworthiness, as measured by their bank financial strength
ratings.  With the three economies in deep recession, corporate
defaults are rising and Moody's expects this to lead to
significantly increased losses on the banks' corporate loan
portfolios.  Moreover, the rating agency expects delinquencies in
the banks' retail portfolios to rise, reflecting higher
unemployment, lower income levels and a likely further decline in
house prices.

Moody's expects these potential losses and substantial
provisioning needs to weaken Baltic banks' profitability and
capital positions over the next two years.  The declining
profitability trends were already seen in the banks' Q1
financials.  Also, a significant deterioration in asset quality
ratio indicators was visible in 2008 and has continued this year.

Moody's notes, however, that the banks' funding positions remain
relatively comfortable with customer deposits being the major
source of funding for most of the entities.  However, the fierce
competition for deposits will exert pressure on some of the banks'
funding.  In particular, the rating agency remains concerned about
the future prospects of those banks that are reliant on non-
resident deposits for funding.  A business model that mainly
relies on non-resident business could potentially be adversely
affected in the ongoing financial crisis.

Moody's has incorporated expected losses on bank loan portfolios
into its ratings for some time, but the weight that it attaches to
certain rating considerations, particularly capital and future
earnings prospects, has been increased to better reflect the
present conditions.  This approach is consistent with Moody's
reports "Calibrating Bank Ratings in the Context of the Global
Financial Crisis" and "Moody's Approach to Estimating Bank Credit
Losses and their Impact on Bank Financial Strength Ratings",
published in February and May, respectively, this year.

Moody's notes that there has been speculation that the Bank of
Latvia may be forced to devalue the lat and outlined its opinion
on a devaluation scenario in a recently published Special Comment
entitled, "Living on the edge: Latvian devaluation speculation and
implications for the sovereign rating".

Although the probability of a devaluation has recently declined
due to the Latvian parliament's approval of a fiscal package that
was welcomed by the EU and IMF, Moody's stresses that a
devaluation cannot be ruled out completely, as economic and social
pressure in Latvia will continue to be high for some time.

Therefore, Moody's already incorporates a moderate risk of a
devaluation into its estimates of expected bank credit losses.
However, the ratings of some banks would likely be downgraded
further if the risk of a devaluation were to increase.  The rating
agency notes that a devaluation would lead to a further
deterioration in the banks' asset quality, given the significant
amount of loans in foreign currency.  On average, foreign-exchange
loans account for around 90% of the Moody's rated banks' total
customer loans.

The long-term deposit and debt ratings of all the rated Baltic
banks carry negative outlooks, reflecting the negative outlook
that Moody's has placed on all three banking systems.

                        The Rating Actions

Moody's took these rating actions on the Baltic banks:

                     Baltic International Bank

Baltic International Bank's E+ BFSR was affirmed, but now maps to
a BCA of B3 (from B2).  Consequently, the bank's long-term local
and foreign currency deposit ratings were downgraded to B3 from
B2. The Not Prime short-term rating was affirmed.  The E+ BFSR and
the B3 long-term local and foreign currency deposit ratings carry
a negative outlook.

The lowering of the bank's BCA reflects its relatively low capital
level with a capital adequacy ratio of 10.4% at end-March 2009,
which raises its vulnerability to prolonged stress.  While
acknowledging the bank's relatively small loan portfolio when
compared with that of its Baltic peers (25% of total assets),
there was a significant increase in problem loans last year.  In
addition to weakening asset quality, further concerns relate to
the bank's loan portfolio concentrations to the real estate
sector.  The downgrade also reflects Moody's concerns about how
the ongoing recession could affect the bank's business model,
which is primarily focused on private banking and non-resident
business.

                             BIGBANK

Moody's downgraded BIGBANK's BFSR to E (mapping to the BCA of
Caa1) with stable outlook from E+ (mapping to the BCA of B1).  The
bank's long-term deposit rating was downgraded to Caa1 with a
negative outlook from B1 following the downgrade of the BFSR.  The
Not Prime short-term deposit rating was affirmed.

The magnitude of the downgrade and the negative outlook reflects
Moody's view that BIGBANK's capital position will come under
significant pressure in the short term because of its 100%
exposure to higher-risk consumer finance.  Although the bank's
total capital adequacy ratio was 19.2% at the end of March 2009,
Moody's expects that future credit costs in its consumer loan book
will lead to a significant risk of the bank becoming
undercapitalized.  Moody's notes that the bank reported an
exceptionally high problem loan ratio of 43% at the end of March
2009, a rapid increase from 18% at the beginning of 2008.  The
rating agency adds that the downgrade reflects its expectation
that the bank's capital cushion under financial covenants will
narrow as it limits deterioration in the capital adequacy ratio to
15%.

                 Mortgage and Land Bank of Latvia

Moody's confirmed MLBL's long-term foreign currency deposit rating
at Baa3 and downgraded its BFSR to E+ with a stable outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).
MLBL's long-term foreign currency deposit rating is at the same
level as the Latvian sovereign bond rating of Baa3.  The outlook
on the Baa3 long-term deposit rating is negative, in line with the
negative outlook on the Latvian sovereign rating.  The Prime-3
short-term rating was confirmed.

The downgrade of the BFSR reflects the bank's weakened
profitability and asset quality.  It also reflects Moody's
expectation of potential losses associated with the bank's
significant exposure to the property sector and SMEs.  In
particular, this is in light of the bank's low loan loss reserves,
which provided a low 16% coverage of problem loans at the end of
2008.  Furthermore, the bank has reported a rapid increase in
problem loans, which accounted for 8.6% of gross loans at the end
of 2008 compared with 2.7% at the end of 2007.

Commenting on keeping MLBL's long-term foreign currency deposit
rating at the same level as the government bond rating, Moody's
notes the government's very high commitment to support the bank.
This commitment is demonstrated by: (i) capital injections in the
past, most recently in January 2009 amounting to LVL29 million
(US$59 million), and the planned LVL43 million (US$87 million) in
July 2009; (ii) the fact that the bank is wholly owned by the
Latvian government (the Ministry of Finance, specifically); and
(iii) the bank's important role as the sole development bank in
Latvia and its role as a contributor of state funds to the SME
sector.  Also, supporting this view, Moody's understands that the
bank is in the process of being transformed into a pure
development bank.  Accordingly, the rating agency continues to
assess the probability of government support as very high and
consequently expects that state support would be forthcoming if
necessary.

                           Norvik Banka

Moody's downgraded Norvik Banka's BFSR to E+ with negative outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).  The
bank's local and foreign currency deposit ratings were downgraded
to B1 from Ba3, due to the downgrade of the BFSR, also with a
negative outlook.  The Not Prime short-term rating was affirmed.

The downgrade reflects the potential losses stemming from the
bank's relatively concentrated corporate portfolio and reduced
level of profitability compared with previous years.  While
acknowledging the bank's higher-than-average capital ratio of
14.2% at the end of March 2009, Moody's notes that its loan book
exhibits concentrations to shipping and consumer finance, which
have the potential to generate large losses in the current
environment.  Also of concern is the swift growth of problem
loans, which accounted for 12.5% of gross loans at the end of
2008, up from 1.5% at the beginning of the same year.

                          Siauliu Bankas

Moody's downgraded Siauliu Bankas's BFSR to D- (mapping to a BCA
of Ba3) with negative outlook from D (mapping to a BCA of Ba2).
The local and foreign currency deposit ratings were also
downgraded to Ba3 with negative outlook from Ba2 following the
downgrade of the BFSR.  The Not Prime short-term rating was
affirmed.

The downgrade and negative outlook reflect Moody's view that the
bank's profitability and asset quality is expected to be severely
impacted by the ongoing economic downturn due its sizeable
exposure to SMEs and the real estate sector, which are being
adversely affected by the recession.  However, Moody's notes that
the bank's customer loan portfolio is not exposed to foreign-
exchange risk to the same extent as its Latvian peers.  Also,
standing at 15.9% at the end of March 2009, the bank reports one
of the highest capital adequacy ratios in the Baltic region.

                        Trasta Komerbanka

Trasta Komercbanka's E+ BFSR was affirmed, but now maps to a BCA
of B3, down from B2.  Consequently, the bank's long-term local and
foreign currency deposit ratings were downgraded to B3 from B2.
The Not Prime short-term rating was affirmed.  All the ratings
carry a negative outlook.

The lowering of the bank's BCA incorporates its relatively weak
capital level, which raises its vulnerability to prolonged stress,
as well as its rapid asset growth over the past few years.
Although the bank's loan portfolio accounted for a relatively low
44% of total assets at the end of 2008, potential losses
associated with its significant exposure to the property sector
are a cause for concern.  Furthermore, the downgrade also reflects
Moody's concerns about how the ongoing recession will affect the
bank's business model, which is primarily focused on non-resident
business.

Moody's last rating action on Baltic International Bank was on
June 8, 2009, when Moody's placed its long-term local and foreign
currency deposit ratings on review for possible downgrade.

Moody's last rating action on BIGBANK was on June 8, 2009, when
Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Mortgage and Land Bank of Latvia was
on June 8, 2009, when Moody's placed its ratings on review for
possible downgrade.

Moody's last rating action on Norvik Banka was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Siauliu Bankas was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Trasta Komercbanka was on June 8,
2009, when Moody's placed its long-term local and foreign currency
deposit ratings on review for possible downgrade.

Baltic International Bank is headquartered in Riga, Latvia, and
reported consolidated total assets of LVL0.167 billion
(EUR0.24 billion) at the end of December 2008.

BIGBANK is headquartered in Tallinn, Estonia, and reported
consolidated total assets of EEK2.9 billion (EUR0.18 billion) at
the end of December 2008.

Mortgage and Land Bank of Latvia is headquartered in Riga, Latvia,
and reported total assets of LVL969 million (EUR1.4 billion) at
the end of December 2008.

Norvik Banka is headquartered in Riga, Latvia, and reported total
assets of LVL506 million (EUR0.7 billion) at the end of December
2008.

Siauliu Bankas is headquartered in Siauliu, Lithuania, and
reported total assets of LTL2.1 billion (EUR0.6 billion) at the
end of December 2008.

Trasta Komercbanka is headquartered in Riga, Latvia, and reported
consolidated total assets of LVL0.28 billion (EUR0.4 billion) at
the end of December 2008.


TRASTA KOMERCBANKA: Moody's Affirms 'E+' Financial Strength Rating
------------------------------------------------------------------
Moody's Investors Service downgraded the ratings of six Baltic
banks.  The affected entities are Baltic International Bank
(Latvia), BIGBANK (Estonia), Norvik Banka (Latvia), Siauliu Bankas
(Lithuania) and Trasta Komercbanka (Latvia), with the BFSR of
Mortgage and Land Bank of Latvia also being downgraded, while its
long-term foreign currency deposit rating was confirmed.

The downgrades conclude the review process for the six banks that
was initiated on June 8, 2009, although Moody's notes that the
long-term debt and deposit ratings of Parex Bank and Swedbank AS
remain on review for possible downgrade.  These reviews were
initiated on May 11, 2009 and April 27, respectively, and both are
expected to be concluded in the next month following the release
of further information on Parex Bank and the conclusion of the
review on Swedbank AS's parent bank, Swedbank AB.

The full list of rating actions can be found below.

The rating actions are driven by the speed and depth of the
deterioration of the Baltic economies (Estonia, Latvia and
Lithuania) and its impact on the banks' standalone
creditworthiness, as measured by their bank financial strength
ratings.  With the three economies in deep recession, corporate
defaults are rising and Moody's expects this to lead to
significantly increased losses on the banks' corporate loan
portfolios.  Moreover, the rating agency expects delinquencies in
the banks' retail portfolios to rise, reflecting higher
unemployment, lower income levels and a likely further decline in
house prices.

Moody's expects these potential losses and substantial
provisioning needs to weaken Baltic banks' profitability and
capital positions over the next two years.  The declining
profitability trends were already seen in the banks' Q1
financials.  Also, a significant deterioration in asset quality
ratio indicators was visible in 2008 and has continued this year.

Moody's notes, however, that the banks' funding positions remain
relatively comfortable with customer deposits being the major
source of funding for most of the entities.  However, the fierce
competition for deposits will exert pressure on some of the banks'
funding.  In particular, the rating agency remains concerned about
the future prospects of those banks that are reliant on non-
resident deposits for funding.  A business model that mainly
relies on non-resident business could potentially be adversely
affected in the ongoing financial crisis.

Moody's has incorporated expected losses on bank loan portfolios
into its ratings for some time, but the weight that it attaches to
certain rating considerations, particularly capital and future
earnings prospects, has been increased to better reflect the
present conditions.  This approach is consistent with Moody's
reports "Calibrating Bank Ratings in the Context of the Global
Financial Crisis" and "Moody's Approach to Estimating Bank Credit
Losses and their Impact on Bank Financial Strength Ratings",
published in February and May, respectively, this year.

Moody's notes that there has been speculation that the Bank of
Latvia may be forced to devalue the lat and outlined its opinion
on a devaluation scenario in a recently published Special Comment
entitled, "Living on the edge: Latvian devaluation speculation and
implications for the sovereign rating".

Although the probability of a devaluation has recently declined
due to the Latvian parliament's approval of a fiscal package that
was welcomed by the EU and IMF, Moody's stresses that a
devaluation cannot be ruled out completely, as economic and social
pressure in Latvia will continue to be high for some time.

Therefore, Moody's already incorporates a moderate risk of a
devaluation into its estimates of expected bank credit losses.
However, the ratings of some banks would likely be downgraded
further if the risk of a devaluation were to increase.  The rating
agency notes that a devaluation would lead to a further
deterioration in the banks' asset quality, given the significant
amount of loans in foreign currency.  On average, foreign-exchange
loans account for around 90% of the Moody's rated banks' total
customer loans.

The long-term deposit and debt ratings of all the rated Baltic
banks carry negative outlooks, reflecting the negative outlook
that Moody's has placed on all three banking systems.

                        The Rating Actions

Moody's took these rating actions on the Baltic banks:

                     Baltic International Bank

Baltic International Bank's E+ BFSR was affirmed, but now maps to
a BCA of B3 (from B2).  Consequently, the bank's long-term local
and foreign currency deposit ratings were downgraded to B3 from
B2. The Not Prime short-term rating was affirmed.  The E+ BFSR and
the B3 long-term local and foreign currency deposit ratings carry
a negative outlook.

The lowering of the bank's BCA reflects its relatively low capital
level with a capital adequacy ratio of 10.4% at end-March 2009,
which raises its vulnerability to prolonged stress.  While
acknowledging the bank's relatively small loan portfolio when
compared with that of its Baltic peers (25% of total assets),
there was a significant increase in problem loans last year.  In
addition to weakening asset quality, further concerns relate to
the bank's loan portfolio concentrations to the real estate
sector.  The downgrade also reflects Moody's concerns about how
the ongoing recession could affect the bank's business model,
which is primarily focused on private banking and non-resident
business.

                             BIGBANK

Moody's downgraded BIGBANK's BFSR to E (mapping to the BCA of
Caa1) with stable outlook from E+ (mapping to the BCA of B1).  The
bank's long-term deposit rating was downgraded to Caa1 with a
negative outlook from B1 following the downgrade of the BFSR.  The
Not Prime short-term deposit rating was affirmed.

The magnitude of the downgrade and the negative outlook reflects
Moody's view that BIGBANK's capital position will come under
significant pressure in the short term because of its 100%
exposure to higher-risk consumer finance.  Although the bank's
total capital adequacy ratio was 19.2% at the end of March 2009,
Moody's expects that future credit costs in its consumer loan book
will lead to a significant risk of the bank becoming
undercapitalized.  Moody's notes that the bank reported an
exceptionally high problem loan ratio of 43% at the end of March
2009, a rapid increase from 18% at the beginning of 2008.  The
rating agency adds that the downgrade reflects its expectation
that the bank's capital cushion under financial covenants will
narrow as it limits deterioration in the capital adequacy ratio to
15%.

                 Mortgage and Land Bank of Latvia

Moody's confirmed MLBL's long-term foreign currency deposit rating
at Baa3 and downgraded its BFSR to E+ with a stable outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).
MLBL's long-term foreign currency deposit rating is at the same
level as the Latvian sovereign bond rating of Baa3.  The outlook
on the Baa3 long-term deposit rating is negative, in line with the
negative outlook on the Latvian sovereign rating.  The Prime-3
short-term rating was confirmed.

The downgrade of the BFSR reflects the bank's weakened
profitability and asset quality.  It also reflects Moody's
expectation of potential losses associated with the bank's
significant exposure to the property sector and SMEs.  In
particular, this is in light of the bank's low loan loss reserves,
which provided a low 16% coverage of problem loans at the end of
2008.  Furthermore, the bank has reported a rapid increase in
problem loans, which accounted for 8.6% of gross loans at the end
of 2008 compared with 2.7% at the end of 2007.

Commenting on keeping MLBL's long-term foreign currency deposit
rating at the same level as the government bond rating, Moody's
notes the government's very high commitment to support the bank.
This commitment is demonstrated by: (i) capital injections in the
past, most recently in January 2009 amounting to LVL29 million
(US$59 million), and the planned LVL43 million (US$87 million) in
July 2009; (ii) the fact that the bank is wholly owned by the
Latvian government (the Ministry of Finance, specifically); and
(iii) the bank's important role as the sole development bank in
Latvia and its role as a contributor of state funds to the SME
sector.  Also, supporting this view, Moody's understands that the
bank is in the process of being transformed into a pure
development bank.  Accordingly, the rating agency continues to
assess the probability of government support as very high and
consequently expects that state support would be forthcoming if
necessary.

                           Norvik Banka

Moody's downgraded Norvik Banka's BFSR to E+ with negative outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).  The
bank's local and foreign currency deposit ratings were downgraded
to B1 from Ba3, due to the downgrade of the BFSR, also with a
negative outlook.  The Not Prime short-term rating was affirmed.

The downgrade reflects the potential losses stemming from the
bank's relatively concentrated corporate portfolio and reduced
level of profitability compared with previous years.  While
acknowledging the bank's higher-than-average capital ratio of
14.2% at the end of March 2009, Moody's notes that its loan book
exhibits concentrations to shipping and consumer finance, which
have the potential to generate large losses in the current
environment.  Also of concern is the swift growth of problem
loans, which accounted for 12.5% of gross loans at the end of
2008, up from 1.5% at the beginning of the same year.

                          Siauliu Bankas

Moody's downgraded Siauliu Bankas's BFSR to D- (mapping to a BCA
of Ba3) with negative outlook from D (mapping to a BCA of Ba2).
The local and foreign currency deposit ratings were also
downgraded to Ba3 with negative outlook from Ba2 following the
downgrade of the BFSR.  The Not Prime short-term rating was
affirmed.

The downgrade and negative outlook reflect Moody's view that the
bank's profitability and asset quality is expected to be severely
impacted by the ongoing economic downturn due its sizeable
exposure to SMEs and the real estate sector, which are being
adversely affected by the recession.  However, Moody's notes that
the bank's customer loan portfolio is not exposed to foreign-
exchange risk to the same extent as its Latvian peers.  Also,
standing at 15.9% at the end of March 2009, the bank reports one
of the highest capital adequacy ratios in the Baltic region.

                        Trasta Komerbanka

Trasta Komercbanka's E+ BFSR was affirmed, but now maps to a BCA
of B3, down from B2.  Consequently, the bank's long-term local and
foreign currency deposit ratings were downgraded to B3 from B2.
The Not Prime short-term rating was affirmed.  All the ratings
carry a negative outlook.

The lowering of the bank's BCA incorporates its relatively weak
capital level, which raises its vulnerability to prolonged stress,
as well as its rapid asset growth over the past few years.
Although the bank's loan portfolio accounted for a relatively low
44% of total assets at the end of 2008, potential losses
associated with its significant exposure to the property sector
are a cause for concern.  Furthermore, the downgrade also reflects
Moody's concerns about how the ongoing recession will affect the
bank's business model, which is primarily focused on non-resident
business.

Moody's last rating action on Baltic International Bank was on
June 8, 2009, when Moody's placed its long-term local and foreign
currency deposit ratings on review for possible downgrade.

Moody's last rating action on BIGBANK was on June 8, 2009, when
Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Mortgage and Land Bank of Latvia was
on June 8, 2009, when Moody's placed its ratings on review for
possible downgrade.

Moody's last rating action on Norvik Banka was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Siauliu Bankas was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Trasta Komercbanka was on June 8,
2009, when Moody's placed its long-term local and foreign currency
deposit ratings on review for possible downgrade.

Baltic International Bank is headquartered in Riga, Latvia, and
reported consolidated total assets of LVL0.167 billion
(EUR0.24 billion) at the end of December 2008.

BIGBANK is headquartered in Tallinn, Estonia, and reported
consolidated total assets of EEK2.9 billion (EUR0.18 billion) at
the end of December 2008.

Mortgage and Land Bank of Latvia is headquartered in Riga, Latvia,
and reported total assets of LVL969 million (EUR1.4 billion) at
the end of December 2008.

Norvik Banka is headquartered in Riga, Latvia, and reported total
assets of LVL506 million (EUR0.7 billion) at the end of December
2008.

Siauliu Bankas is headquartered in Siauliu, Lithuania, and
reported total assets of LTL2.1 billion (EUR0.6 billion) at the
end of December 2008.

Trasta Komercbanka is headquartered in Riga, Latvia, and reported
consolidated total assets of LVL0.28 billion (EUR0.4 billion) at
the end of December 2008.


* LATVIA: Lacks Int'l Reserves to Cover Debts, World Bank Says
--------------------------------------------------------------
Elizabeth Konstantinova at Bloomberg News reports that according
to the World Bank, Latvia lacks enough international reserves to
cover debts coming due this year.

Bloomberg News relates in a report on June 22 the World Bank said
Latvia's short-term debt amounted to 250 percent of its US$3.9
billion lati reserves in February.

Bloomerg News says Latvia is among the most vulnerable in the
eastern European region as it has fixed exchange rates in systems
that limit its central bank's ability to adjust monetary policy.


=================
L I T H U A N I A
=================


SIAULIU BANKAS: Moody's Lowers Bank Fin'l Strength Rating to 'D-'
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of six Baltic
banks.  The affected entities are Baltic International Bank
(Latvia), BIGBANK (Estonia), Norvik Banka (Latvia), Siauliu Bankas
(Lithuania) and Trasta Komercbanka (Latvia), with the BFSR of
Mortgage and Land Bank of Latvia also being downgraded, while its
long-term foreign currency deposit rating was confirmed.

The downgrades conclude the review process for the six banks that
was initiated on June 8, 2009, although Moody's notes that the
long-term debt and deposit ratings of Parex Bank and Swedbank AS
remain on review for possible downgrade.  These reviews were
initiated on May 11, 2009 and April 27, respectively, and both are
expected to be concluded in the next month following the release
of further information on Parex Bank and the conclusion of the
review on Swedbank AS's parent bank, Swedbank AB.

The full list of rating actions can be found below.

The rating actions are driven by the speed and depth of the
deterioration of the Baltic economies (Estonia, Latvia and
Lithuania) and its impact on the banks' standalone
creditworthiness, as measured by their bank financial strength
ratings.  With the three economies in deep recession, corporate
defaults are rising and Moody's expects this to lead to
significantly increased losses on the banks' corporate loan
portfolios.  Moreover, the rating agency expects delinquencies in
the banks' retail portfolios to rise, reflecting higher
unemployment, lower income levels and a likely further decline in
house prices.

Moody's expects these potential losses and substantial
provisioning needs to weaken Baltic banks' profitability and
capital positions over the next two years.  The declining
profitability trends were already seen in the banks' Q1
financials.  Also, a significant deterioration in asset quality
ratio indicators was visible in 2008 and has continued this year.

Moody's notes, however, that the banks' funding positions remain
relatively comfortable with customer deposits being the major
source of funding for most of the entities.  However, the fierce
competition for deposits will exert pressure on some of the banks'
funding.  In particular, the rating agency remains concerned about
the future prospects of those banks that are reliant on non-
resident deposits for funding.  A business model that mainly
relies on non-resident business could potentially be adversely
affected in the ongoing financial crisis.

Moody's has incorporated expected losses on bank loan portfolios
into its ratings for some time, but the weight that it attaches to
certain rating considerations, particularly capital and future
earnings prospects, has been increased to better reflect the
present conditions.  This approach is consistent with Moody's
reports "Calibrating Bank Ratings in the Context of the Global
Financial Crisis" and "Moody's Approach to Estimating Bank Credit
Losses and their Impact on Bank Financial Strength Ratings",
published in February and May, respectively, this year.

Moody's notes that there has been speculation that the Bank of
Latvia may be forced to devalue the lat and outlined its opinion
on a devaluation scenario in a recently published Special Comment
entitled, "Living on the edge: Latvian devaluation speculation and
implications for the sovereign rating".

Although the probability of a devaluation has recently declined
due to the Latvian parliament's approval of a fiscal package that
was welcomed by the EU and IMF, Moody's stresses that a
devaluation cannot be ruled out completely, as economic and social
pressure in Latvia will continue to be high for some time.

Therefore, Moody's already incorporates a moderate risk of a
devaluation into its estimates of expected bank credit losses.
However, the ratings of some banks would likely be downgraded
further if the risk of a devaluation were to increase.  The rating
agency notes that a devaluation would lead to a further
deterioration in the banks' asset quality, given the significant
amount of loans in foreign currency.  On average, foreign-exchange
loans account for around 90% of the Moody's rated banks' total
customer loans.

The long-term deposit and debt ratings of all the rated Baltic
banks carry negative outlooks, reflecting the negative outlook
that Moody's has placed on all three banking systems.

                        The Rating Actions

Moody's took these rating actions on the Baltic banks:

                     Baltic International Bank

Baltic International Bank's E+ BFSR was affirmed, but now maps to
a BCA of B3 (from B2).  Consequently, the bank's long-term local
and foreign currency deposit ratings were downgraded to B3 from
B2. The Not Prime short-term rating was affirmed.  The E+ BFSR and
the B3 long-term local and foreign currency deposit ratings carry
a negative outlook.

The lowering of the bank's BCA reflects its relatively low capital
level with a capital adequacy ratio of 10.4% at end-March 2009,
which raises its vulnerability to prolonged stress.  While
acknowledging the bank's relatively small loan portfolio when
compared with that of its Baltic peers (25% of total assets),
there was a significant increase in problem loans last year.  In
addition to weakening asset quality, further concerns relate to
the bank's loan portfolio concentrations to the real estate
sector.  The downgrade also reflects Moody's concerns about how
the ongoing recession could affect the bank's business model,
which is primarily focused on private banking and non-resident
business.

                             BIGBANK

Moody's downgraded BIGBANK's BFSR to E (mapping to the BCA of
Caa1) with stable outlook from E+ (mapping to the BCA of B1).  The
bank's long-term deposit rating was downgraded to Caa1 with a
negative outlook from B1 following the downgrade of the BFSR.  The
Not Prime short-term deposit rating was affirmed.

The magnitude of the downgrade and the negative outlook reflects
Moody's view that BIGBANK's capital position will come under
significant pressure in the short term because of its 100%
exposure to higher-risk consumer finance.  Although the bank's
total capital adequacy ratio was 19.2% at the end of March 2009,
Moody's expects that future credit costs in its consumer loan book
will lead to a significant risk of the bank becoming
undercapitalized.  Moody's notes that the bank reported an
exceptionally high problem loan ratio of 43% at the end of March
2009, a rapid increase from 18% at the beginning of 2008.  The
rating agency adds that the downgrade reflects its expectation
that the bank's capital cushion under financial covenants will
narrow as it limits deterioration in the capital adequacy ratio to
15%.

                 Mortgage and Land Bank of Latvia

Moody's confirmed MLBL's long-term foreign currency deposit rating
at Baa3 and downgraded its BFSR to E+ with a stable outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).
MLBL's long-term foreign currency deposit rating is at the same
level as the Latvian sovereign bond rating of Baa3.  The outlook
on the Baa3 long-term deposit rating is negative, in line with the
negative outlook on the Latvian sovereign rating.  The Prime-3
short-term rating was confirmed.

The downgrade of the BFSR reflects the bank's weakened
profitability and asset quality.  It also reflects Moody's
expectation of potential losses associated with the bank's
significant exposure to the property sector and SMEs.  In
particular, this is in light of the bank's low loan loss reserves,
which provided a low 16% coverage of problem loans at the end of
2008.  Furthermore, the bank has reported a rapid increase in
problem loans, which accounted for 8.6% of gross loans at the end
of 2008 compared with 2.7% at the end of 2007.

Commenting on keeping MLBL's long-term foreign currency deposit
rating at the same level as the government bond rating, Moody's
notes the government's very high commitment to support the bank.
This commitment is demonstrated by: (i) capital injections in the
past, most recently in January 2009 amounting to LVL29 million
(US$59 million), and the planned LVL43 million (US$87 million) in
July 2009; (ii) the fact that the bank is wholly owned by the
Latvian government (the Ministry of Finance, specifically); and
(iii) the bank's important role as the sole development bank in
Latvia and its role as a contributor of state funds to the SME
sector.  Also, supporting this view, Moody's understands that the
bank is in the process of being transformed into a pure
development bank.  Accordingly, the rating agency continues to
assess the probability of government support as very high and
consequently expects that state support would be forthcoming if
necessary.

                           Norvik Banka

Moody's downgraded Norvik Banka's BFSR to E+ with negative outlook
(mapping to a BCA of B1) from D- (mapping to a BCA of Ba3).  The
bank's local and foreign currency deposit ratings were downgraded
to B1 from Ba3, due to the downgrade of the BFSR, also with a
negative outlook.  The Not Prime short-term rating was affirmed.

The downgrade reflects the potential losses stemming from the
bank's relatively concentrated corporate portfolio and reduced
level of profitability compared with previous years.  While
acknowledging the bank's higher-than-average capital ratio of
14.2% at the end of March 2009, Moody's notes that its loan book
exhibits concentrations to shipping and consumer finance, which
have the potential to generate large losses in the current
environment.  Also of concern is the swift growth of problem
loans, which accounted for 12.5% of gross loans at the end of
2008, up from 1.5% at the beginning of the same year.

                          Siauliu Bankas

Moody's downgraded Siauliu Bankas's BFSR to D- (mapping to a BCA
of Ba3) with negative outlook from D (mapping to a BCA of Ba2).
The local and foreign currency deposit ratings were also
downgraded to Ba3 with negative outlook from Ba2 following the
downgrade of the BFSR.  The Not Prime short-term rating was
affirmed.

The downgrade and negative outlook reflect Moody's view that the
bank's profitability and asset quality is expected to be severely
impacted by the ongoing economic downturn due its sizeable
exposure to SMEs and the real estate sector, which are being
adversely affected by the recession.  However, Moody's notes that
the bank's customer loan portfolio is not exposed to foreign-
exchange risk to the same extent as its Latvian peers.  Also,
standing at 15.9% at the end of March 2009, the bank reports one
of the highest capital adequacy ratios in the Baltic region.

                        Trasta Komerbanka

Trasta Komercbanka's E+ BFSR was affirmed, but now maps to a BCA
of B3, down from B2.  Consequently, the bank's long-term local and
foreign currency deposit ratings were downgraded to B3 from B2.
The Not Prime short-term rating was affirmed.  All the ratings
carry a negative outlook.

The lowering of the bank's BCA incorporates its relatively weak
capital level, which raises its vulnerability to prolonged stress,
as well as its rapid asset growth over the past few years.
Although the bank's loan portfolio accounted for a relatively low
44% of total assets at the end of 2008, potential losses
associated with its significant exposure to the property sector
are a cause for concern.  Furthermore, the downgrade also reflects
Moody's concerns about how the ongoing recession will affect the
bank's business model, which is primarily focused on non-resident
business.

Moody's last rating action on Baltic International Bank was on
June 8, 2009, when Moody's placed its long-term local and foreign
currency deposit ratings on review for possible downgrade.

Moody's last rating action on BIGBANK was on June 8, 2009, when
Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Mortgage and Land Bank of Latvia was
on June 8, 2009, when Moody's placed its ratings on review for
possible downgrade.

Moody's last rating action on Norvik Banka was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Siauliu Bankas was on June 8, 2009,
when Moody's placed its ratings on review for possible downgrade.

Moody's last rating action on Trasta Komercbanka was on June 8,
2009, when Moody's placed its long-term local and foreign currency
deposit ratings on review for possible downgrade.

Baltic International Bank is headquartered in Riga, Latvia, and
reported consolidated total assets of LVL0.167 billion
(EUR0.24 billion) at the end of December 2008.

BIGBANK is headquartered in Tallinn, Estonia, and reported
consolidated total assets of EEK2.9 billion (EUR0.18 billion) at
the end of December 2008.

Mortgage and Land Bank of Latvia is headquartered in Riga, Latvia,
and reported total assets of LVL969 million (EUR1.4 billion) at
the end of December 2008.

Norvik Banka is headquartered in Riga, Latvia, and reported total
assets of LVL506 million (EUR0.7 billion) at the end of December
2008.

Siauliu Bankas is headquartered in Siauliu, Lithuania, and
reported total assets of LTL2.1 billion (EUR0.6 billion) at the
end of December 2008.

Trasta Komercbanka is headquartered in Riga, Latvia, and reported
consolidated total assets of LVL0.28 billion (EUR0.4 billion) at
the end of December 2008.


* LITHUANIA: Economy to Shrink 16% This Year, IMF Says
------------------------------------------------------
Milda Seputyte at Bloomberg News reports that the International
Monetary Fund said Lithuania's economy will contract 16 percent
this year.

According to Bloomberg News, the IMF said the Baltic state is
suffering from the twin blows of shrinking export markets and
depleted access to credit.  The IMF, as cited by Bloomberg News,
said Lithuania's economy will shrink 3.4 percent in 2010.

Bloomberg News relates Prime Minister Andrius Kubilius said at a
press conference on June 22 the government targets bringing the
budget deficit to within 3 percent of gross domestic product in
two years to help Lithuania adopt the euro.


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


AMSTEL SECURITISATION: Moody's Keeps 'Ba2' Rating on Class E Notes
------------------------------------------------------------------
Moody's Investors Service has confirmed its ratings on four
classes of notes and downgraded its ratings on three classes of
notes issued by Amstel Securitisation of Contingent Obligations
2006-1 B.V.

The transaction is a replenishable synthetic balance sheet CDO
referencing counterparty exposures under derivative contracts
originated or acquired by ABN AMRO or its subsidiaries.  The
relatively high credit quality of the reference portfolio has
remained stable since closing.

The rating actions reflect the revision of certain key assumptions
that the agency uses to rate and monitor corporate CDOs.  These
revised assumptions incorporate Moody's expectation that European
and global corporate default rates are likely to greatly exceed
their historical long-term averages and reflect the heightened
interdependence of credit markets in the current global economic
contraction.

Specifically, the changes include: (1) a 30% increase in the
assumed likelihood of default for corporate credits in CDOs (2) an
increase in the degree to which ratings are adjusted according to
other credit indicators such as rating Reviews and Outlooks and
(3) an increase in the default correlation applied to corporate
portfolios as generated through a combination of higher default
rates and increased asset correlations.

These revised assumptions are described in greater detail in the
press release titled "Moody's updates key assumptions for rating
corporate synthetic CDOs" published on January 15, 2009.

In addition, for the majority of the underlying referenced assets,
the equivalent Moody's ratings used in Moody's analysis are
obtained through a mapping process between the originator's
internal rating scale and Moody's public rating scale.  To
compensate for the absence of credit indicators such as ratings
reviews and outlooks in mapped ratings, a half notch stress was
applied to the mapping scale.  Because the mapping was performed
prior to April 1, 2007, an additional stress was applied to
capture potential deviations from the established mapping.

Moody's initially analysed and continues to monitor this
transaction using primarily the methodology and its supplements
for corporate synthetic CDOs as described in Moody's Special
Reports and press releases below:

  -- Moody's Approach To Rating Corporate Collateralized Synthetic
     Obligations (March 2009)

  -- Framework for De-Linking Hedge Counterparty Risks from Global
     Structured Finance Cashflow Transactions (May 2007)

  -- Modeling Recovery Rates in European CDOs (August 2002)

The rating actions are:

  -- Class A+1, Confirmed at Aaa; previously on April 6, 2009, Aaa
     Placed Under Review for Possible Downgrade

  -- Class  A+2, Confirmed at Aaa; previously on April 6, 2009,
     Aaa Placed Under Review for Possible Downgrade

  -- Class  A1, Downgraded to Aa1; previously on April 6, 2009,
     Aaa Placed Under Review for Possible Downgrade

  -- Class  B, Downgraded to A1; previously on April 6, 2009, Aa2
     Placed Under Review for Possible Downgrade

  -- Class  C, Downgraded to A3; previously on April 6, 2009, A2
     Placed Under Review for Possible Downgrade

  -- Class  D, Confirmed at Baa2; previously on April 6, 2009,
     Baa2 Placed Under Review for Possible Downgrade

  -- Class  E, Confirmed at Ba2; previously on April 6, 2009, Ba2
     Placed Under Review for Possible Downgrade


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


EUROKOMMERZ HOLDING: Moody's Cuts Currency Issuer Ratings to 'C'
----------------------------------------------------------------
Moody's Investors Service has downgraded to C from Caa2 the long-
term foreign and local currency issuer ratings of Eurokommerz
Holding Limited.  At the same time, Moody's Interfax Rating
Agency, which is majority-owned by Moody's, has downgraded
Eurokommerz's long-term National Scale Rating to C.ru from B2.ru.
These rating actions conclude the review of Eurokommerz's long-
term ratings that was initiated on December 15, 2008.

Moody's observes that the downgrade of Eurokommerz's long-term
ratings captures the fact that the company is now in default on
the majority of its obligations after it first defaulted on its
coupon payment under the RUB3 billion (around US$107 million)
domestic bonds in December 2008.  Since then, it has defaulted on
the rest of obligations and certain assets were frozen by court
decision.  As a result, it is unlikely that the company will
achieve success in its negotiations with creditors and, given that
a bail-out is improbable, bankruptcy is now the most likely
scenario.

The assigned C ratings reflect Moody's expectation of a loss of
more than 50% for Eurokommerz's senior unsecured creditors as a
result of significant asset quality issues.

Moody's last rating action was on December 15, 2008, when
Eurokommerz's ratings were downgraded to Caa2/B2.ru from B2/A3.ru
and placed on review with direction uncertain.

Based in Moscow, Eurokommerz was the largest company in the
Russian factoring sector prior to its default.  Eurokommerz
reported total consolidated assets of US$1.9 billion and total
equity of US$454 million under IFRS as of June 30, 2008.


LESOSIBIRSKIY COLOPHONY: Creditors Must File Claims by July 22
--------------------------------------------------------------
The Arbitration Court of Krasnoyarskiy commenced bankruptcy
proceedings against OJSC Lesosibirskiy Colophony-Extraction Plant
(TIN 2454000132, PSRN 1022401507116, RVC 245401001) after finding
the company insolvent.  The case is docketed under Case No. ?27–
15023/2008.

Creditors have until July 22, 2009, to submit proofs of claims to:

         Ye. Katser
         Insolvency Manager
         Post User Box 12161
         660041 Krasnoyarsk
         Russia

The Court is located at:

         The Arbitration Court of Krasnoyarskiy
         Lenina Str. 143
         660021 Krasnoyarsk
         Russia

The Debtor can be reached at:

         OJSC Lesosibirskiy Colophony-Extraction Plant
         Privokzalnaya Str. 2
         Lesosibirsk
         662544 Krasnoyarskiy
         Russia
         Tel: 8-902-990-1142,
              8(391)290-00-16


MOLDED STRIPS: Creditors Must File Claims by July 5
---------------------------------------------------
Creditors of LLC Molded Strips Plant (TIN 3805111460) have until
July 5, 2009, to submit proofs of claims to:

         O. Lukina
         Temporary Insolvency Manager
         Post User Box 165
         664047 Irkutsk
         Russia

The Arbitration Court of Irkutskaya will convene on Sept. 29,
2009, to hear bankruptcy supervision procedure on the company.
The case is docketed under Case No. ?19–8747/09–37.

The Debtor can be reached at:

         LLC Molded Strips Plant
         Post User Box 2754
         665714 Bratsk
         Russia


MUNICIPAL COMMERCIAL: Creditors Must File Claims by July 22
-----------------------------------------------------------
The Arbitration Court of Kaliningradskaya commenced bankruptcy
proceedings against OJSC Municipal Commercial Bank (TIN
3905005995? Registration Number 1731) after finding the company
insolvent.  The case is docketed under Case No. ?21–1970/2009.

Creditors of  have until July 22, 2009, to submit proofs of claims
to:

         Investment Insurance Agency
         Insolvency Manager
         Kosmonavta Leonova Str. 2
         236000 Kaliningrad
         Russia
         Tel: 8-800-200-08-05

The Debtor can be reached at:

         OJSC Municipal Commercial Bank
         Kosmonavta Leonova Str. 2
         236000 Kaliningrad
         Russia


ORLOVSKIY HARVESTER: Court Names I.Churkina as Insolvency Manager
-----------------------------------------------------------------
The Arbitration Court of Orlovskaya appointed I.Churkina as
insolvency manager for LLC Orlovskiy Harvester Manufacturing Plant
(TIN 5752029728).  The case is docketed under Case No. ?48–
3087/07–16B.  He can be reached at:

         Post User Box 2
         394038 Voronezh
         Russia

The Debtor can be reached at:

         LLC Orlovskiy Harvester Manufacturing Plant
         Kromskoe shosse 3
         Orel
         Orlovskaya
         Russia


SOVCOMBANK: Moody's Withdraws 'E' Bank Financial Strength Rating
----------------------------------------------------------------
Moody's Investors Service has withdrawn these ratings of
Sovcombank:

  -- Bank's Financial Strength Rating (BFSR) of E (Stable
     outlook);

  -- Long-term and short-term local and foreign currency deposit
     ratings of Caa1/Not Prime (Negative outlook);

  -- Long-term National Scale deposit ratings of Ba3.ru.

Moody's has withdrawn these ratings for business reasons following
the official request from Sovcombank.

Moody's notes that, as of the date of the ratings withdrawal,
Sovcombank had no outstanding debts rated by Moody's.

Moody's last rating action was on June 4, 2009, when Moody's
downgraded the long-term foreign and local currency deposit
ratings of Sovcombank to Caa1 from B3, and the bank financial
strength rating to E from E+.  At the same time, Moody's Interfax
Rating Agency downgraded the long-term national scale credit
ratings of Sovcombank to Ba3.ru from Baa2.ru.  As of the date of
the ratings withdrawal, long-term deposit ratings carried a
negative outlook while an outlook on BFSR was stable.

Headquartered in Kostroma in the Russian Federation, Sovcombank
operates in 25 regions of Russia with a key focus on retail
products.  The bank reported total assets of RUB25.4 billion
(US$864 million) and RUB2.5 billion (US$84.8 million) of
shareholders' equity under IFRS as at year-end 2008.


=====================
S W I T Z E R L A N D
=====================


BOERLIN AG: Creditors Must File Claims by July 31
-------------------------------------------------
Creditors of Boerlin AG are requested to file their proofs of
claim by July 31, 2009, to:

        Peter Boerlin
        Weidstrasse 19
        4416 Bubendorf
        Switzerland

The company is currently undergoing liquidation in Titterten.  The
decision about liquidation was accepted at an extraordinary
general meeting held on September 30, 2008.


CLOCK FINANCE: Moody's Confirms B3 Ratings on Two Classes of Notes
------------------------------------------------------------------
Moody's Investors Service has confirmed the long-term credit
ratings of these notes issued by Clock Finance No. 1 B.V.:

-- CHF132,000,000 Class A , Confirmed at Aaa, previously, on 23
     March 2009 Placed Under Review for Possible Downgrade;

-- CHF20,000,000 Class B1, Confirmed at Aa2, previously, on 23
    March 2009 Placed Under Review for Possible Downgrade;

-- EUR45,400,000 Class B2, Confirmed at Aa2, previously, on 23
    March 2009 Placed Under Review for Possible Downgrade;

-- CHF13,000,000 Class C1, Confirmed at A2, previously, on 23
    March 2009 Placed Under Review for Possible Downgrade;

-- EUR52,700,000 Class C2, Confirmed at A2, previously, on 23
    March 2009 Placed Under Review for Possible Downgrade;

-- EUR56,300,000 Class D, Confirmed at Baa3, previously, on 23
    March 2009 Placed Under Review for Possible Downgrade;

-- EUR40,300,000 Class E, Confirmed at Ba3, previously, on 23
    March 2009 Placed Under Review for Possible Downgrade;

-- CHF10,000,000 Class F1, Confirmed at B3, previously, on 23
    March 2009 Placed Under Review for Possible Downgrade; and

-- EUR18,700,000 Class F2, Confirmed at B3, previously, on 23
    March 2009 Placed Under Review for Possible Downgrade.

Moody's initially assigned definitive ratings in March 2007.

The rating action concludes the rating review resulting from
Moody's revision of its methodology for SME granular portfolio in
EMEA.  This revised methodology was announced on March 17, 2009
and the affected transactions were placed on review on March 23,
2009.

As a result of its revised methodology, Moody's has reviewed its
assumption for the collateral portfolio anticipating a performance
deterioration of the portfolio due to the current recession.
Moody's have slightly revised upwards the default probability of
the pool of corporate and SME debtors to be equivalent to a
Ba1/Ba2 rating with a remaining weighted average life of 3.92
years as of March 2009.  As a consequence, these revised
assumptions have translated into a cumulative mean default
assumption of 5.24% of the current portfolio balance, with a
coefficient of variation of 58%.  The replenishment period is
scheduled to terminate in February 2013.

Moody's original mean default assumption for the portfolio was
5.3% equivalent to a Baa3/Ba1 rating with a weighted average life
of 6 years and a coefficient of variation of 53%.  The average
recovery rate assumption remains unchanged at 55% on average.

For this rating review, Moody's have also used revised and updated
key modelling parameters that Moody's uses to rate and monitor
ratings of Synthetic SME CDOs using a simulation based model
(CDOROM).  Moody's announced the changes to these assumptions in a
press release titled "Moody's updates key assumptions for rating
corporate synthetic CDOs", published on January 15, 2009.  The
revisions affect default probability (including the 130% default
probability multiplier) and correlation, which are key parameters
in Moody's model for rating CDOs exposed to corporate assets.  The
deal was modeled using CDOROM version 2.5, whereas the deal was
originally modeled by Moody's and is managed by Credit Suisse
using CDOROM version 2.3.

In summary, Moody's concluded that the negative effects of the
revised default assumption and the use of the CDOROM v2.5 model
were offset by the short remaining life of the portfolio and notes
and the credit enhancement currently available in the transaction.

Clock Finance is a synthetic transaction under which noteholders
assume the credit risk linked to a pool of loans granted by Credit
Suisse (Aa1) to larger companies and SMEs in Switzerland.  At
closing, the portfolio consisted of loans granted to 1,805
debtors.  The main sector concentration is in the "building and
real estate" sector and it was approximately 15% as of closing.
As of March 2009, the number of debtors in the portfolio was equal
to 1,879, whereas the concentration in the "construction and
building" sector remained stable at 15%.

Moody's ratings address the expected loss posed to investors by
the legal final maturity of the notes.  Moody's ratings address
only the credit risks associated with the transaction.  Other non-
credit risks have not been addressed, but may have a significant
effect on yield to investors.


FRICK MALEREI: Creditors Have Until August 3 to File Claims
-----------------------------------------------------------
Creditors of Frick Malerei AG are requested to file their proofs
of claim by August 3, 2009, to:

         Dr. Peter Burkhalter
         Liquidator
         Elfenstrasse 19
         3000 Bern 6
         Switzerland

The company is currently undergoing liquidation in Bern.  The
decision about liquidation was accepted at a general meeting held
on March 4, 2009.


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


BALTIYA LLC: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------
The Economic Court of Cherkassy commenced bankruptcy supervision
procedure on LLC Trading House Baltiya (code EDRPOU 30413676).

The Insolvency Manager is:

         M. Zvezdichev
         Office 16
         Shevchenko Boulevard 132
         18000 Cherkassy
         Ukraine

The Court is located at:

         The Economic Court of Cherkassy
         Shevchenko boulevard 307
         18004 Cherkassy
         Ukraine

The Debtor can be reached at:

         LLC Trading House Baltiya
         Gromov Str. 188
         18000 Cherkassy
         Ukraine


DRUZHBA LLC: Creditors Must File Claims by July 1
-------------------------------------------------
Creditors of LLC Druzhba (code EDRPOU 30713745) have until
July 1, 2009, to submit proofs of claim to:

         A. Salamanovich
         Insolvency Manager
         Post Office Box 3/13
         58013 Chernovtsy
         Ukraine

The Economic Court of Chernovtsy commenced bankruptcy proceedings
against the company on May 13, 2009.  The case is docketed under
Case No. 9/49/b.

The Court is located at:

         The Economic Court of Chernovtsy
         O. Kobilianskaya Str. 14
         58000 Chernovtsy
         Ukraine

The Debtor can be reached at:

         LLC Druzhba
         Stary Volchinets
         Glibotsky District
         60440 Chernovtsy
         Ukraine


INDUSTRIAL UNION-SP: Creditors Must File Claims by July 1
---------------------------------------------------------
Creditors of LLC Industrial Union-SP (code EDRPOU 34353239) have
until July 1, 2009, to submit proofs of claim to:

         A. Nesterenko
         Insolvency Manager
         Office 89
         Tampere Str. 17/2
         02105 Kiev
         Ukraine

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on April 23, 2009.  The case is docketed under
Case No. 43/139-b.

The Court is located at:

         The Economic Court of Kiev
         B. Hmelnitskiy street 44-b
         01030 Kiev
         Ukraine

The Debtor can be reached at:

         LLC Industrial Union-SP
         Vasilenko Str. 7-A
         03124 Kiev
         Ukraine


MCKEVER HOTEL: Goes Into Administration
---------------------------------------
The Scotsman's Jane Bradley reports that the McKever hotel group
has gone into administration, putting a total of 450 jobs at risk.

The report relates the company, owned by Alistair McKever, called
in administrators BDO Stoy Hayward last week after failing to keep
up banking and tax payments.  According to the report, the company
has debts of GBP70 million -- owed to both Mr. McKever himself and
HM Revenues and Customs.  The report says Mr. McKever is set to
lose up to GBP30 million of his personal fortune, after lending
his own cash to the company.

The report discloses Mr. McKever said his company, which owns
about 20 hotels and guest houses, had struggled since the credit
crunch restricted bank lending.

"All hotels are continuing to trade and will remain open while we
conduct a review of the business with a view to securing a going-
concern sale of the group," the report quoted James Stephen,
business restructuring partner at BDO Stoy Hayward, as saying.

The administrator has appointed BDL Management to manage the daily
operation of sites belonging to the group, the report notes.

McKever Group -- http://www.mckeverhotels.co.uk/-- is based in
Glasgow, Scotland.  It operates 11 hotels in Scotland and Northern
England.


OLTIS LLC: Creditors Must File Claims by July 1
-----------------------------------------------
Creditors of LLC Oltis (code EDRPOU 31280205) have until
July 1, 2009, to submit proofs of claim.

The Economic Court of Kiev commenced bankruptcy proceedings
against the company on April 29, 2009.

The Court is located at:

          The Economic Court of Kiev
          B. Hmelnitskiy street 44-b
          01030 Kiev
          Ukraine

The Debtor can be reached at:

          LLC Oltis
          40 years of October avenue 120, b. 1
          03022 Kiev
          Ukraine


U PHARMA: Creditors Must File Claims by July 1
----------------------------------------------
Creditors of LLC Farmaceutical Firm U Pharma Trade (code EDRPOU
23855371) have until July 1, 2009, to submit proofs of claim to:

         N. Nikitenko
         Insolvency Manager
         Post Office Box 411
         69037 Zaporozhye
         Ukraine

The Economic Court of Zaporozhye commenced bankruptcy proceedings
against the company on May 18, 2009.  The case is docketed under
Case No. 16/94/09.

The Court is located at:

         The Economic Court of Zaporozhye
         Shaumian Str. 4
         69600 Zaporozhye
         Ukraine

The Debtor can be reached at:

         LLC Farmaceutical Firm U Pharma Trade
         Prodovolstvennaya Str. 3-A
         69014 Zaporozhye
         Ukraine


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


BIRTHDAYS: Clinton Cards Buys 196 Stores Out of Administration
--------------------------------------------------------------
Samantha Pearson at the Financial Times reports that Clinton Cards
plc has bought 196 stores of its Birthdays subsidiary out of
administration for GBP3.5 million (US$5.7 million).

According to the FT, Clinton will pay only GBP250,000 in cash for
the stores, with the remainder of the price satisfied by a
reduction in the amount owed by Brithdays to Clinton.  The
acquired stores, which employ 1,450 people, will continue to be
operated under the Birthdays brand, the FT says.

The FT relates the administrators, Zolfo Cooper, however, said
that the remaining 136 Birthday stores would be closed, resultin
in the loss of 750 jobs.

The FT recalls Birthdays was put into administration last month
when Clintons decided to stop providing funding to it.


CATALYST HEALTHCARE: S&P Cuts Corporate Credit Rating to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
underlying ratings on the debt issued by U.K.-based special-
purpose vehicle Catalyst Healthcare (Romford) Financing PLC to
'BB+' from 'BBB' and placed them on CreditWatch with negative
implications.

The debt comprises GBP128.4 million of senior secured bonds, due
in 2038, and a GBP100 million European Investment Bank senior
secured loan due 2034.  The funds are being used by the project's
operating company, Catalyst Healthcare (Romford) Ltd. (ProjectCo;
not rated), to design, build, and operate a hospital in Romford,
in the U.K.

The 'AAA' long-term insured ratings on the debt are unchanged and
still carry a negative outlook to reflect that of Financial
Security Assurance (U.K.) Ltd. (FSA; AAA/Negative/--), which
provides an unconditional and irrevocable guarantee of scheduled
interest and principal payments on the bonds.  The recovery rating
on the debt is unchanged at '2', reflecting Standard & Poor's
expectation of substantial (70%-90%) recovery of principal in the
event of a payment default.

"The downgrade reflects the project's reduced financial strength,
demonstrated by a decline in DSCRs, with the minimum DSCR close to
the technical default level of 1.05x as of March 31, 2009, and the
same projected for March 2010," said Standard & Poor's credit
analyst Ekaterina Lebedeva.

RPI deflation causes a significant increase in taxable profits,
resulting in a higher tax charge, which consequently reduces the
project's DSCR.  When the bond index increases (inflation), it
triggers a tax-deductible indexation charge to the profit and loss
account, which reduces tax liability.  However, bond index
decreases (deflation) result in a taxable credit, which leads to
higher taxable profits and elevated tax payments.  A higher tax
burden means lower profits and DSCRs.

ProjectCo presented its March 2009 ratio compliance certificate to
the controlling creditor, FSA, using data from a financial model
run in February 2008.  However, ProjectCo updated the financial
model in May 2009 with revised RPI assumptions that resulted in a
new minimum DSCR of 1.057x in March 2009 and March 2010 and an
average of 1.27x.

The project's collateral deed contains an event of default, which
is triggered if, on any payment date, the DSCR is less than or
equal to 1.05x during the next 12 months.  If this occurs, the
current controlling creditor, FSA, would have the legal right to
take a number of actions, including realizing on security or
demanding immediate repayment of all outstanding debt.  At this
stage, S&P does not believe FSA is inclined to exercise its rights
under the event-of-default clause, as long as the longer-term
prospects for the project appear reasonably strong.  However,
given that the minimum DSCR is very close to that of the technical
event of default, S&P will seek clarification on what remedial
steps, if any, the controlling creditor may implement.

Positively, the project continues to demonstrate a strong track
record of service delivery, established since its transition into
the operational phase.

The CreditWatch placement mainly reflects the project's
sensitivity to the recent volatility of the U.K. RPI, which may
result in the DSCR reaching a level equivalent to a technical
default.  The CreditWatch also reflects the potential governance
issues related to the project's March 2009 reported performance
against the subsequent May 2009 actual performance.

"We aim to resolve the CreditWatch within the next month, after a
detailed review of the revised projected financial profile and
underlying assumptions," said Ms. Lebedeva.  "If, as currently,
projected, current and future DSCRs are projected to be close to
1.05x, S&P is likely to lower the underlying rating by possibly
more than one notch."

"We would also need to understand the approach to be taken by the
controlling creditor with respect to any covenant breach and the
liquidity available to ProjectCo through its various reserves,"
Ms. Lebedeva added.

S&P would consider revising the outlook to stable or positive, if
the project's financial profile strengthens on a sustainable
basis.


DAWSON HOLDINGS: Enters Into "Standstill Agreement" w/ Creditors
----------------------------------------------------------------
Rowena Mason at Telegraph.co.uk reports that Dawson Holdings plc
has entered into a "standstill agreement" with its creditors.

The report relates Daily Mail and General Trust warned investors
Wednesday that Dawson owed it approximately GBP12 million in
circulation revenues, while Trinity Mirror said in a stock
exchange announcement it currently has balances totaling some GBP7
million due to the group.

                           Sale Talks

According to the report, Dawson said talks to dispose of its
troubled newspaper distribution business, which has
lost GBP500 million worth of contracts this year continue.  The
report discloses since the start of the year Dawson has lost
contracts with Associated Newspapers, Marketforce, Comag,
Frontline, Seymour, News International, Trinity Mirror and
Telegraph Media Group, publisher of The Daily Telegraph.

The report recalls in May, KPMG, Dawson's auditor, warned there
was material uncertainty about whether Dawson was a "going
concern" in the group's interim results.

Dawson Holdings Plc -- http://www.dawson.co.uk/--  is a United
Kingdom-based company.  The Company is engaged in the distribution
of newspapers, magazines, books and the provision of marketing
support services.  The Company operates in four business segment:
Dawson News, Dawson Media Direct, Dawson Books and Dawson
Marketing Services.  Dawson News provides wholesale and specialist
news distribution services.  Dawson Media Direct (DMD) provides
in-flight management services, including specialist distribution
to the airline industry, as well as niche delivery. Dawson Books
provides shelf-ready books, and a variety of added value services,
to professional, academic, corporate and public library markets
worldwide.  Dawson Marketing Services (DMS) provides marketing
support and logistics services through the effective integration
of stock management, Web reporting and distribution arrangements.


HIGH TIDE: Moody's Cuts Rating on EUR17 Mil. Class B Notes to 'Ca'
------------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of two
classes of notes issued by High Tide CDOI S.A.

The transaction is a synthetic CDO referencing, among other
assets, Prime RMBS (23%), ABS/SME CDOs (13%), Subprime RMBS (12%).
The rating action is a response to credit deterioration in the
underlying portfolio due, in a significant proportion, to
expectations of increased losses in the underlying RMBS and ABS
CDO assets.  According to Moody's, 30% of the reference entities
suffered a downward credit rating migration greater than had been
anticipated by its forward looking measures in its review in
March.  These include, but are not limited to, multiple notch
downgrades of ABS CDOs.

Moody's continues to monitor this transaction using primarily the
methodology and its supplements for ABS CDOs as described in
Moody's Special Report below:

  -- Moody's Approach to Rating SF CDOs, March 2009

The rating actions are:

High Tide CDO I S.A.:

(1) EUR54,500,000 Class A Senior Secured Floating Rate Notes due
    2043

  -- Current Rating: B3

  -- Prior Rating: Ba2, on review for downgrade

  -- Prior Rating Date: 9 June 2009, Ba2 rating placed on review
     for downgrade

(2) EUR17,000,000 Class B Senior Secured Floating Rate Notes due
    2043

  -- Current Rating: Ca

  -- Prior Rating: Caa3, on review for downgrade

  -- Prior Rating Date: 9 June 2009, Caa3 rating placed on review
     for downgrade


ITV PLC: Bondholders Accept Exchange Offer to Reduce Debt
---------------------------------------------------------
Salamander Davoudi and Anousha Sakoui at the Financial Times
report that more than half of ITV plc's bondholders have accepted
a bond exchange offer to reduce the the company's debt and
refinancing risk.

The FT discloses bondholders holding 54 percent -- or EUR268
million out of ITV's 2011 EUR500 million eurobond -- have accepted
the chance to swap debt for cash and new notes.  The new bonds,
the FT says, will mature in 2014 instead of 2011.

According to the FT, the company has estimated that this exchange
offer will cut its gross debt by GBP68.2 million.  The company's
debt pile stands at GBP730 million, the FT notes.

                        About ITV plc

ITV plc -- http://www.itvplc.com/-- is a United Kingdom-based
advertising funded broadcaster.  The Company also operates as an
advertising funded media owner in the United Kingdom across all
media, including television, radio, press, cinema, outdoor and the
Internet.  As a producer, ITV makes hours of network television.
Its digital channels include ITV2, ITV3, ITV4 and Citv.  ITV also
makes programs for the BBC, Channel 4, five, Sky and other
broadcasters.  ITV produces programs watched on screens from San
Francisco to Sydney.  In addition, it produces a range of products
related to ITV programs, such as digital video disks (DVDs) and
computer games.  Its online properties include itv.com,
itvlocal.com and Friends Reunited

                         *     *     *

As reported in the Troubled Company Reporter-Europe on March 9,
2009, Standard & Poor's Ratings Services lowered its long-term
corporate credit and senior unsecured debt ratings on U.K. private
TV broadcaster ITV PLC to 'BB-' from 'BB+'.  S&P said the outlook
is stable.

On March 9, 2009, the TCR-Europe reported that Moody's Investors
Service downgraded ITV plc's senior unsecured ratings, Corporate
Family Rating and Probability of Default rating, to Ba2 (from
Ba1).  Moody's said the rating outlook for ITV is negative.


NOVUS LEISURE: Faces Refinancing; Lending Banks to Take Big Stake
-----------------------------------------------------------------
Daily Mail Reporter reports that Novus Leisure Ltd is facing a
refinancing that would make Barclays and Royal Bank of Scotland
big shareholders.

According to Daily Mail Reporter, the deal will leave Cognetas,
the private equity firm which previously owned the business,
diluted down to minority owner status.  Barclays Ventures,
Daily Mail Reporter says, is to provide a further GBP20 million of
expansion capital.

On April 14, 2009, the Troubled Company Reporter-Europe, citing
Telegraph.co.uk, reported that Novus' lending banks threatened to
pull the plug on the company if it does not reduce its cost base.
According to Telegraph.co.uk, there were speculations that if
Novus does not manage to take more cost out of the business,
Barclays and RBS could put the company into administration.

Telegraph.co.uk disclosed accountancy and restructuring firm
Grant Thornton was working with Novus's board and lending banks on
the negotiations with the company's landlords, which include Land
Securities and Prudential.  Novus' management was seeking a
solution to reduce the amount of rent the company pays for its
sites, Telegraph.co.uk said.

Telegraph.co.uk recalled Cognetas, which acquired Novus in 2005
for around GBP115 million, has been in restructuring talks with
the company's lenders since the start of the year, after it
emerged the group had taken on too much debt and was on course to
breach its banking covenants.

Headquartered in London, Novus Leisure Ltd. --
http://www.novusleisure.com-- operates about 40 upscale
nightspots in London and nine other cities in the UK.  The
company's flagship chain of bars, Tiger Tiger, has about 10
locations offering drinks, dancing, and food.  Its other concepts,
such as Strawberry Moons, Sugar Reef, and Zoo Bar, each offer a
unique atmosphere for young adults out on the town.  Spun off from
intellectual property firm Chorion in 2002, the company was
acquired by private equity firm Electra Partners in 2005.


TATA STEEL: Corus Unit to Cut Further 2,045 Jobs
------------------------------------------------
Peter Stiff at The Times reports that Corus, a unit of India's
Tata Steel Ltd, is to cut a further 2,045 jobs as it struggles to
cope with falling demand for steel.

Reuters relates Tata Steel on Thursday said in a statement its
Corus unit was opening consultations on the jobs, which are at its
facilities in the UK, Netherlands and Scotland.   The Times
discloses Corus, which has already shed about 2,500 jobs this
year, said that 12 sites in the UK would be affected, with heavy
job losses for engineering and office staff in Scunthorpe,
Stocksbridge and Rotherham and on Teesside.

According to Joe Leahy and Varun Sood of the Financial Times, Tata
Steel's standalone Indian operations are among the most profitable
in the world with operating margins of more than 40 per cent, but
these margins have been depressed on a consolidated basis by the
acquisition of Corus.  Tata Steel on Thursday reported a
consolidated margin based on earnings before interest, taxation,
depreciation and amortization of 12.6 per cent in the year to the
end of March compared with 13.9 per cent a year earlier, the FT
notes.

                    About Tata Steel Limited

Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- is a diversified steel producer.  It
has operations in 24 countries and commercial presence in over 50
countries.  Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings.  On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc.  Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008.  In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.

                          *     *     *

As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2.  Moody's said the rating
outlook is stable.


* BOND PRICING: For the Week June 22 to June 26, 2009
-----------------------------------------------------
Issuer                    Coupon   Maturity   Currency   Price
------                    ------   --------   --------   -----

AUSTRIA
-------
Conwert Immo INV          1.500    11/12/14      EUR     64.40
Oester Volksbk            5.450    08/02/19      EUR     71.64
Oester Volksbk            4.810    07/29/25      EUR     57.14
Oester Volksbk            5.270    02/08/27      EUR     91.68
Raiff Centrobank         12.000    07/17/09      EUR     60.85
Republic of Austria       3.120    10/10/25      EUR     66.67


FRANCE
------
Air France-KLM            4.970    04/01/15      EUR     12.34
Alcatel SA                4.750    01/01/11      EUR     15.32
Calyon                    6.000    06/18/47      EUR     39.84
Cap Gemini SA             2.500    01/01/10      EUR     51.46
Cap Gemini Soget          1.000    01/01/12      EUR     39.94
Cap Gemini Soget          3.500    01/01/14      EUR     37.10
Cie Fin Foncier           2.500    02/24/31      CHF     72.92
Cie Fin Foncier           3.880    04/25/55      EUR     72.51
Club Mediterrane          4.380    11/01/10      EUR     47.78
CMA CGM                   5.500    05/16/12      EUR     44.88
Soc Air France            2.750    04/01/20      EUR     18.83


CZECH REPUBLIC
--------------
Czech Republic            2.750    01/16/36      JPY     46.69
Czech Republic            4.200    12/04/36      CZK     76.80


DENMARK
-------
Danske Bank               4.100    03/16/18      EUR     77.05
Danske Bank               5.380    09/29/21      GBP     77.87


GERMANY
-------
Bayerische Lndbk          4.500    02/07/19      EUR     72.06
Commerzbank AG            4.130    09/13/16      EUR     71.23
Commerzbank AG            6.630    08/30/19      GBP     76.72
Depfa Pfandbrief          6.500    03/06/12      HUF     74.72
Deutsche Bk Lond          3.000    05/18/12      CHF     70.06
Deutsche Bk Lond          1.000    03/31/27      USD     70.06


IRELAND
-------
Alfa Bank                 8.640    02/22/17      USD     75.58
Allied Irish Bks          7.880    07/05/23      GBP     72.22
Allied Irish Bks          5.250    03/10/25      GBP     53.74
Allied Irish Bks          5.630    11/29/30      GBP     57.52
Ardagh Glass              7.130    06/15/17      EUR     73.50
Ardagh Glass              7.130    06/15/17      EUR     74.19
Banesto Finance           6.120    11/07/37      EUR      6.12
Bank of Ireland           4.880    01/22/18      GBP     69.94
Bank of Ireland           4.630    02/27/19      EUR     69.62
Dali Capital 29           4.800    12/21/37      GBP     74.53
Depfa ACS Bank            2.550    08/31/15      EUR     90.80
Depfa ACS Bank            1.650    12/20/16      JPY     70.97
Depfa ACS Bank            5.030    08/01/18      EUR     63.73
Depfa ACS Bank            2.380    02/15/19      CHF     93.05
Depfa ACS Bank            0.500    03/03/25      CAD     37.26
Depfa ACS Bank            5.250    03/31/25      CAD     73.11
Depfa ACS Bank            4.600    12/05/25      EUR     70.56
Depfa ACS Bank            3.250    07/31/31      CHF     87.88
Depfa ACS Bank            4.900    08/24/35      CHF     70.17
Depfa ACS Bank            5.130    03/16/37      USD     61.81
Depfa ACS Bank            5.130    03/16/37      USD    104.31
Depfa Bank Plc           11.000    02/07/11      BRL     67.06
UT2 Funding Plc           5.320    06/30/16      EUR     34.51


ITALY
-----
Cir SpA                   5.750    12/16/24      EUR     66.71
Comune di Milano          4.020    06/29/35      EUR     65.15


LUXEMBOURG
----------
Bank of Moscow            6.810    05/10/17      USD     72.29
Breeze                    4.520    04/19/27      EUR     87.41
Cirsa Fin Lux SA          8.750    05/15/14      EUR     72.00
Cirsa Fin Lux SA          8.750    05/15/14      EUR     72.60
Codere Fin Lux            8.250    06/15/15      EUR     58.75
Codere Fin Lux            8.250    06/15/15      EUR     60.69
CRC Breeze                5.290    05/08/26      EUR     62.21
Globus Capital            8.500    03/05/12      USD     47.50

NETHERLANDS
-----------
ABN Amro Bank NV          3.380    08/15/31      CHF     91.89
ABN Amro Bank NV          6.000    03/16/35      EUR     57.57
ABN Amro Bank NV          6.250    06/29/35      EUR     52.17
Air Berlin Finan          1.500    04/11/27      EUR     39.41
ALB Finance BV            9.000    11/22/10      USD     22.48
ALB Finance BV            9.750    02/14/11      GBP     18.48
ALB Finance BV            8.750    04/20/11      GBP     17.48
ALB Finance BV            7.880    02/01/12      EUR     17.44
ALB Finance BV            9.250    09/25/13      USD     17.46
Alfa Bk Ukraine           9.750    12/22/09      USD     72.97
ATF Capital BV            9.250    02/21/14      USD     72.17
Bk Ned Gemeenten          0.500    06/27/18      CAD     66.23
Bk Ned Gemeenten          0.500    02/24/25      CAD     41.31
BLT Finance BV            7.500    05/15/14      USD     52.28
Cemex Fin Europe          4.750    03/05/14      EUR     64.69
Centercrdt Intl           8.630    01/30/14      USD     71.57
Centercrdt Intl           8.630    01/30/14      USD     69.31
Clondalkin BV             8.000    03/15/14      EUR     57.38
Clondalkin BV             8.000    03/15/14      EUR     59.84
Hit Finance BV            4.880    10/27/21      EUR     75.36
JSC Bank of Georgia       9.000    02/08/12      USD     74.06
Turanalem Fin BV          7.130    12/21/09      GBP     23.00
Turanalem Fin BV          7.880    06/02/10      USD     23.99
Turanalem Fin BV          6.250    09/27/11      EUR     20.98
Turanalem Fin BV          7.750    04/25/13      USD     22.40
Turanalem Fin BV          7.750    04/25/13      USD     22.03
Turanalem Fin BV          8.000    03/24/14      USD     23.93
Turanalem Fin BV          8.500    02/10/15      USD     22.43
Turanalem Fin BV          8.250    01/22/37      USD     18.44

ROMANIA
-------
Bucharest                 4.130    06/22/15      EUR     77.62

SPAIN
-----
Ayt Cedulas Caja          3.750    06/30/25      EUR     73.99
Balear Gov't              4.060    11/23/35      EUR     69.29
Caja Madrid               4.130    03/24/36      EUR     75.70
Comun Auto Canar          3.900    11/30/35      EUR     67.10
Comun Auto Canar          4.200    10/25/36      EUR     70.59

SWITZERLAND
-----------
Cytos Biotech             2.880    02/20/12      CHF     43.18

UNITED KINGDOM
--------------
Alfa-Bank CJSC            9.250    07/26/10      USD     68.43
Alliance&Leic Bld         5.250    03/06/23      GBP     75.70
Alliance&Leic Bld         5.880    08/14/31      GBP     76.44
Alpha Credit Grp          2.940    03/04/35      JPY     56.78
Amlin Plc                 6.500    12/19/26      GBP     69.37
Anglian Wat Fin           2.400    04/20/35      GBP     49.92
Arsenal Sec               5.140    09/01/29      GBP     71.28
Aspire Defence            4.670    03/31/40      GBP     69.12
Aviva Plc                 5.750    11/14/21      EUR     72.56
Aviva Plc                 5.250    10/02/23      EUR     71.81
Aviva Plc                 6.880    05/22/38      EUR     67.34
Aviva Plc                 6.880    05/20/58      GBP     69.56
Azovstal                  9.130    02/28/11      USD     74.92
Barclays Bk Plc          11.650    05/20/10      USD     46.38
BL Super Finance          5.580    10/04/25      GBP     73.30
Bradford&Bin Bld          7.630    02/16/10      GBP      4.00
Bradford&Bin Bld          5.630    02/02/13      GBP    102.48
Bradford&Bin Bld          5.500    01/15/18      GBP      3.99
Bradford&Bin Bld          2.750    10/16/18      CHF     96.66
Bradford&Bin Bld          5.750    12/12/22      GBP      4.17
Bradford&Bin Bld          6.630    06/16/23      GBP      5.99
Bradford&Bin Bld          3.500    07/16/27      CHF     93.29
Bradford&Bin Bld          2.880    10/16/31      CHF     57.52
Bradford&Bin Bld          4.910    02/01/47      EUR     49.49
Brit Insurance            6.630    12/09/30      GBP     59.49
British Airways           8.750    08/23/16      GBP     75.56
British Land Co           5.260    09/24/35      GBP     70.25
British Land Co           5.580    10/04/25      GBP     73.30
British Tel Plc           5.750    12/07/28      GBP     72.18
British Tel Plc           6.380    06/23/37      GBP     73.99
Britannia Bldg            5.750    12/02/24      GBP     55.00
Britannia Bldg            5.880    03/28/33      GBP     54.35
Brixton Plc               5.250    10/21/15      GBP     66.26
Brixton Plc               6.000    09/30/19      GBP     65.10
Broadgate Finance         5.000    10/05/31      GBP     70.73
Broadgate Finance         5.100    04/05/33      GBP     57.09
Broadgate Finance         4.820    07/05/33      GBP     73.77
Capital Hospital          1.700    09/30/46      GBP     74.67
Cattles Plc               7.880    01/17/14      GBP      9.48
Cattles Plc               8.130    07/05/17      GBP     15.88
CGNU Plc                  6.130    11/16/26      GBP     69.41
City of Kyiv              8.250    11/26/12      USD     54.93
City of Kiev              8.000    11/06/15      USD     48.57
City of Kiev              8.000    11/06/15      USD     47.94
Clerical Med Fin          6.450    07/05/23      EUR     57.33
Connect M77/GSO           5.400    03/31/34      GBP     73.39
Co-operative Bnk          5.630    11/16/21      GBP     72.60
Delamare Finance          6.070    02/19/29      GBP     71.97
Prudential Bank           6.880    12/29/21      GBP     59.05

                            *********

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, 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.


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