/raid1/www/Hosts/bankrupt/TCREUR_Public/091207.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, December 7, 2009, Vol. 10, No. 241
Headlines
D E N M A R K
TDC/AS: Fitch Assigns 'BB' Rating on 2015 Senior Unsec. Notes
TDC/AS: S&P Assigns 'BB-' Rating on Senior Unsecured Notes
F R A N C E
BANQUE D'ORSAY: Fitch Maintains Individual Rating at 'D'
CHRISTIAN LACROIX: Paris Court Approves Restructuring Plan
THOMSON SA: CEO Wants Creditors to Back Debt Restructuring Plan
G E R M A N Y
ANTENNE WEST: Files for Insolvency at Trier Court
PB CONSUMER: Fitch Affirms Rating on Class E Notes at 'BB'
PROVIDE-VR 2003-1: S&P Junks Rating on Class E Notes
G R E E C E
HELLAS TELECOMMUNICATIONS: Weather Completes Asset Purchase
I R E L A N D
ANGLO IRISH: Criminal Probe to End in a Few Months
COLEMAN BROTHERS: Eyes Examinership; Has Interim Court Protection
DEKANIA EUROPE: S&P Junks Ratings on Eight Tranches
ELVA FUNDING: S&P Raises Rating on $9.996 Mil. Secured Notes
LUNAR FUNDING: S&P Junks Rating on EUR10 Mil. Secured Notes
SAPHIR CDO: S&P Raises Rating on US$5 Mil. Secured Notes to 'BB+'
* IRELAND: Corporate Insolvencies Reach 117 in November 2009
I T A L Y
PIAGGIO & C SPA: Mulls Sale of EUR150 Mln Seven-Year Bonds
SEAT PAGINE: Poor Sales as Users, Advertisers Go Online
K A Z A K H S T A N
ALFA TRUST: Creditors Must File Claims by December 16
ATLANTIS INVEST: Creditors Must File Claims by December 16
DUY STROY: Creditors Must File Claims by December 16
INNOVATSIONNO-TECHNICHESKY: Creditors Must File Claims by Dec. 16
INTEGRATSIYA MAKTA: Creditors Must File Claims by December 16
MARJAN JSC: Creditors Must File Claims by December 16
PETROPAVLOVSKOTYN OJSC: Creditors Must File Claims by December 16
STROY COMMERCE: Creditors Must File Claims by December 16
TEMIRBANK AO: Creditors to Lose Up to 80.3% in Debt Restructuring
TURAN ESIL: Creditors Must File Claims by December 16
TURKESTAN OIL: Creditors Must File Claims by December 16
K Y R G Y Z S T A N
KYRGYZ CARS: Creditors Must File Claims by December 30
KAZ RUS: Creditors Must File Claims by December 30
N E T H E R L A N D S
AEGON BANK: Repays 33% of Dutch Government's EUR3-Bil. Funding
ING GROUP: Prices EUR7.5 Rights Issue at 40% Discount
R O M A N I A
OZER CONSTRUCTION: Turkish Shareholders Sell Shares to Lawyers
R U S S I A
AVTOVAZ OAO: May Get Additional Support From Russia, Putin Says
COUGAR CLO: Moody's Downgrades Rating on Class B Notes to 'B1'
DEKT-TELE: Creditors Must File Claims by December 13
ERA-STROY: Creditors Must File Claims by December 13
INTEGRAL-ZHIL: Creditors Must File Claims by December 13
INTERNATIONAL INDUSTRIAL: Moody's Gives Neg. Outlook on B1 Rating
KOMPLEKT-OIL: Belgorodskaya Bankruptcy Hearing Set December 10
LES-TORG: Creditors Must File Claims by December 13
MDM BANK: Fitch Assigns 'BB-' Long-Term Issuer Default Rating
MELENKI-ZHIL: Creditors Must File Claims by December 13
NOVKLEM LLC: Creditors Must File Claims by December 13
PRESTIZH-STROY: Creditors Must File Claims by December 13
REGION-SEVER: Creditors Must File Claims by December 13
ROSAGROLEASING: Fitch Cuts LT Issuer Default Rating to 'BB+'
UC RUSAL: Won't Resart Aluminum Capacity, Oleg Derispaka Says
ZAVOLZHSKIY CHEMICAL: Creditors Must File Claims by December 13
ZHIL-STROY: Creditors Must File Claims by December 13
* NIZHNIY NOVGOROD: Fitch Assigns 'BB-' Rating on Domestic Bonds
S L O V E N I A
ISTRABENZ D.D.: Creditors Accept Debt Restructuring Plan
S P A I N
BBVA HIPOTECARIO: Moody's Cuts Rating on Series C Notes to 'Ba3'
BBVA LEASING: Fitch Junks Ratings on Two Classes of Notes
IM BANCO: Fitch Junks Rating on Class C Notes to 'CC' From 'B'
IM CAJAMAR: Fitch Downgrades Rating on Class B Notes to 'B'
IM GRUPO: Fitch Affirms Rating on Class E Notes at 'CC'
RURALPYME 2: Fitch Affirms Rating on Class D Notes at 'CC'
TDA CAM: Moody's Cuts Ratings on Three Classes of Notes to 'C'
S W E D E N
GENERAL MOTORS: To Review Saab Bids; May Wind Down Brand
T U R K E Y
ANADOLU EFES: Fitch Raises Foreign Currency IDR to 'BB+'
COCA-COLA: Fitch Raises Foreign Currency IDR From 'BB'
TURKCELL ILETISIM: Fitch Raises Foreign Currency IDR From 'BB'
TURKIYE PETROL: Fitch Raises Foreign Currency IDR From BB
* ISTANBUL: Fitch Upgrades Long-Term Currency Rating to 'BB+'
* REPUBLIC OF TURKEY: Fitch Upgrades Long-Term IDR to 'BB+'
U K R A I N E
OLIMP-TELECOM LLC: Court Starts Bankruptcy Supervision Procedure
U N I T E D K I N G D O M
DE BEERS: Shareholders to Inject US$1 Bln Through Share Placing
EXPRO HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
EXPRO HOLDINGS: S&P Assigns 'B' Corporate Credit Rating
GRAHAM & HESLIP: In Administration; C&R Print Acquires Business
LEEK FINANCE: Moody's Cuts Ratings on Two Classes of Notes to Caa3
YELL GROUP: Poor Sales as Users, Advertisers Go Online
* UK: Commercial Real State Debt In Default More Than Doubled
X X X X X X X X
* BOND PRICING: For the Week November 30 to December 4, 2009
*********
=============
D E N M A R K
=============
TDC/AS: Fitch Assigns 'BB' Rating on 2015 Senior Unsec. Notes
-------------------------------------------------------------
Fitch Ratings has assigned Danish telecom operator TDC A/S's
proposed new 2015 senior unsecured notes an expected rating of
'BB'. The notes are to be issued in conjunction with the proposed
bond exchange offer announced. TDC's ratings are summarized
below.
The terms and conditions of the proposed 2015 bonds substantially
mirror those of the existing 2012 senior unsecured TDC bonds rated
'BB', for which the new issuance is to be exchanged. The proposed
exchange offer will partially extend TDC's upcoming debt
amortization profile, with between EUR200 million-300 million of
the 2012 bonds to be exchanged for the new 2015 notes if the offer
is successful.
The final rating of the new senior unsecured notes is contingent
upon receipt of final documents conforming to information already
received.
TDC's current ratings are:
-- TDC A/S Long-term Issuer Default Rating: 'BB'; Outlook
Positive
-- TDC A/S Short-term IDR: 'B'
-- TDC A/S senior secured facilities: 'BB+'
-- TDC A/S senior unsecured: 'BB'
-- NTC Holding ApS senior notes: 'BB-'
TDC/AS: S&P Assigns 'BB-' Rating on Senior Unsecured Notes
----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB-'
debt rating to the proposed senior unsecured notes due 2015 of up
to EUR300 million to be issued by leading Danish integrated
telecommunications provider TDC A/S (TDC; BB-/Positive/B).
At the same time, S&P assigned a recovery rating of '3' to this
debt, indicating S&P's expectation of meaningful (50%-70%)
recovery for creditors in the event of a payment default. S&P
anticipate that the new notes will be unsecured and rank pari
passu to the existing European medium-term notes at TDC.
The issue and recovery ratings on the senior secured credit
facilities issued by TDC remain unchanged at 'BB+' and '1',
respectively. The issue and recovery ratings on the subordinated
notes issued by Nordic Telephone Co. Holding ApS (BB-/Positive/
--), the intermediate parent company of TDC, also remain unchanged
at 'BB-' and '4', respectively.
The 'BB-' rating on the proposed new notes is in line with S&P's
corporate credit rating on TDC. S&P understands that all of the
proceeds from the bond issue will be used to partially repay the
outstanding EUR713 million notes due 2012 (part of the EMTN
program). The rating on the proposed notes is based on
preliminary information and is subject to S&P's satisfactory
review of final documentation. In the event of any changes to the
amount or terms of the bond, the recovery and issue ratings could
be subject to further review.
Recovery Analysis
The recovery rating on the proposed notes is '3' indicating S&P's
expectation of meaningful (50%-70%) recovery for creditors in the
event of a payment default.
S&P has valued the business as a going concern. Given TDC's
satisfactory business risk profile and leading market position,
S&P believes that a default would most likely result from
excessive leverage as a result of weakening operating cash flow
generation capability.
Before this transaction, S&P had based its hypothetical default
scenario on the assumption that the group would be unable to
refinance the EMTN debt before maturity (2012). If the
EUR300 million note issuance is successful, S&P believes the most
likely hypothetical point of default would be later than in 2012.
S&P's assumptions about group valuation and the debt amount at
default could change depending on TDC's use of the EUR1.5 billion
proceeds from the announced disposal of its Swiss subsidiary
Sunrise.
S&P expects that these proceeds would be used to repay currently
outstanding debt instruments. Once this has actually happened,
S&P may revise S&P's assumptions on the most likely path to
default and therefore its valuation and waterfall analysis
accordingly.
Depending on the application of the proceeds toward repayment of
the group's different debt instruments, there might be notching
implications on the rated outstanding debt; if, for example, the
distressed asset value is much lower and the priority debt remains
largely unchanged.
Recovery prospects for secured and unsecured debt instruments
reflect the estimated value available and accessible to creditors.
The prospects also reflect the current complex capital structure.
Specifically, S&P believes that EMTN holders (and also holders of
the newly issued notes) at TDC level and speculative-grade note
holders at NTCH level would likely need to negotiate with one
another to determine priority of repayment at default. The
different recovery ratings reflect S&P's assumptions that holders
of the EMTN and proposed new notes benefit from a slightly better
position compared with the subordinated debt holders at NTCH,
whose claims are structurally subordinated.
The recovery prospects could also be sensitive to any potential
significant devaluation of the Danish krone, as a large proportion
of the assets generate cash flows in local currency, while most of
the debt is denominated in euros.
===========
F R A N C E
===========
BANQUE D'ORSAY: Fitch Maintains Individual Rating at 'D'
--------------------------------------------------------
Fitch Ratings is maintaining Banque d'Orsay's 'BBB+' Long-term
Issuer Default Rating, 'F2' Short-term IDR and Support Rating of
'2' on Rating Watch Negative. The Individual Rating has been
affirmed at 'D'.
The RWN on Banque d'Orsay's ratings reflects that placed on the
IDRs of its parent, WestLB AG ('A-' RWN/'F1' RWN), as Banque
d'Orsay's IDRs are based on the support available from WestLB AG.
The RWN on WestLB reflects the ownership change expected by 2011
that has been imposed by the European Commission due to the state
aid received by WestLB, as well as a potential reduction of the
importance of WestLB to its owner, the German state of North Rhine
Westfalia. For further information on WestLB AG, please refer to
the agency's commentary "WestLB AG's Ratings Remain on Rating
Watch Negative" of 25 November 2009.
In addition, given the European Commission requirements for WestLB
AG to substantially reduce its international presence, there is a
high likelihood that Banque d'Orsay's ownership will change over
the medium term. Banque d'Orsay is now viewed as a non-strategic
asset; any further change in WestLB's IDRs or in Banque d'Orsay's
ownership structure will affect Banque d'Orsay's IDRs and Support
Rating. However, Fitch expects support to be forthcoming as long
as WestLB remains the owner of Banque d'Orsay. WestLB's
commitment to its subsidiary is publicly stated in its annual
report, in the form of a declaration of backing, called
'Patronatserklaerung'.
The Individual Rating of Banque d'Orsay reflects the bank's modest
franchise, small size, weakened funding profile and high leverage.
The bank has a good historical track record in its arbitrage
business, where it has good expertise, albeit marred in H207 and
2008 when results were negatively impacted by market and credit
shocks. Risk limits have been substantially reduced and
management has been focusing on de-leveraging to free up liquidity
and improve capital ratios. In the first eight months of 2009,
Banque d'Orsay returned to profitability; however, its equity was
nearly halved in 2008 by a net loss. Change in the Individual
Rating will depend on Banque d'Orsay's ability to restore its
profitability and capitalization.
Banque d'Orsay is a niche bank operating in arbitrage, asset
management and private banking, primarily in France.
In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings. Collectively these
ratings drive Fitch's Long- and Short-term IDRs.
CHRISTIAN LACROIX: Paris Court Approves Restructuring Plan
----------------------------------------------------------
Pascale Denis at Reuters reports that a Paris court approved a
restructuring plan for Christian Lacroix SNC, owned by the Falic
family, Tuesday last week.
The Falic group's turnaround plan consists of halting Lacroix's
haute couture and pret-a-porter activities, with the aim of
licensing them out to a third party in the event of a takeover,
Reuters says.
Reuters relates the ruling came after potential buyers -- Gulf
investor Hassan bin Ali al-Nuaimi and France's Bernard Krief
Consulting -- missed a deadline to provide financial guarantees
sought for a takeover of the company.
According to Reuters, the fate of Christian Lacroix, owned by the
Falic family is not yet sealed, however, as talks will continue
with the prospective buyers even as Lacroix' owners try to trim
the business back. Out of a staff of 120, only between 15 and 20
workers would be retained to maintain the licensing contracts for
accessories and perfume, Reuters discloses.
As reported by the Troubled Company Reporter-Europe on June 4,
2009, AFP said a commercial court in Paris placed Christian
Lacroix into administration. AFP disclosed the company declared
insolvency in May, blaming "the sharp downturn of the luxury
market."
THOMSON SA: CEO Wants Creditors to Back Debt Restructuring Plan
---------------------------------------------------------------
Jennifer Thompson at The Financial Times reports that Frederic
Rose, the chief executive of Thomson SA, has demanded that
creditors accept a debt restructuring or face a court-imposed
plan.
The FT relates Mr. Rose on Nov. 30 launched proceedings to place
the company under the protection of the commercial courts after
four months of talks on a debt restructuring failed to reach
agreement.
Mr. Rose, as cited by the FT, said the "consensual process" had
not worked, in spite of initial agreement by a majority of
creditors in July that would have seen 45% of the group's EUR2.8
billion (US$4.2 billion) gross debt swapped into equity.
According to the FT, Mr. Rose said by applying for debt protection
with the courts, he had "frozen the electoral list" and those who
owned Thomson paper on Monday would be called to a vote on
December 21 and 22. The group needs the support of two-thirds of
creditors to implement the plan, the FT notes. The FT says if the
group fails to win the support it needs for its July debt plan,
Mr. Rose will ask the commercial courts to impose a new
restructuring.
"We cannot continue with this uncertainty," the FT quoted Mr. as
saying. "We have taken this sauvegarde action for one reason
only: to finish restructuring this debt. There was no reason to
believe that in another three months of negotiations the outcome
would have been any different."
About Thomson SA
France-based Thomson SA -- http://www.thomson.net/-- provides
technology, services, and systems to Media & Entertainment (M&E)
clients, including content creators, content distributors and
broadcasters. It has three principal operating divisions:
Services, Systems (previously Systems & Equipment) and Technology.
The remaining activities are regrouped in two additional segments:
Other and Corporate. The Services Division offers end-to-end
management of video-related services for its customers in the M&E
industries. Systems division plays a role in supplying hardware
and software technology for the M&E industries in the areas of
production, delivery, management, transmission, and access.
Technology division includes activities, such as corporate
research; Silicon Solutions: Integrated Circuit design and tuners,
and Software & Technology Solutions: video and audio security
solutions, and other technologies. In December 2008, the Company
sold its digital film equipment product line.
=============
G E R M A N Y
=============
ANTENNE WEST: Files for Insolvency at Trier Court
-------------------------------------------------
Joern Krieger at Rapid TV News reports that Antenne West has filed
for insolvency at the district court in Trier.
Hans-Albrecht Brauer from Daun has been named as preliminary
insolvency administrator, the report relates.
According to the report, satellite distribution of Antenne West's
television channel on Astra (19.2o East) was terminated in
September following a significant reduction in advertising
bookings due to the financial crisis.
Based in Trier, Germany, Antenne West operated TV and radio
channels for the regions of Eifel, Saar, Mosel and Hunsrück in
federal state Rheinland-Pfalz.
PB CONSUMER: Fitch Affirms Rating on Class E Notes at 'BB'
----------------------------------------------------------
Fitch Ratings has upgraded PB Consumer 2008-1 GmbH's class B and
class C notes while affirming the rest. The transaction is
originated by Deutsche Postbank AG (rated 'A+'/'F1+'/Stable
Outlook) and backed by unsecured consumer loans extended to
private individuals in Germany. The full rating actions are:
-- EUR295.2 million class A floating-rate notes (DE000A0STMA5):
affirmed at 'AAA'; Outlook Stable; assigned Loss Severity
Rating 'LS-1'
-- EUR11.4 million class B floating-rate notes (DE000A0STMB3):
upgraded to 'AA+' from 'AA'; Outlook Positive; assigned
'LS-4'
-- EUR18.5 million class C floating-rate notes (DE000A0STMC1):
upgraded to 'A+' from 'A'; Outlook Positive; assigned 'LS-3'
-- EUR26.3 million class D floating-rate notes (DE000A0STMD9):
affirmed at 'BBB'; Outlook revised to Positive from Stable;
assigned 'LS-3'
-- EUR10.7 million class E floating-rate notes (DE000A0STME7):
affirmed at 'BB'; Outlook Stable; assigned 'LS-4'
The upgrade and the Outlook change reflect the de-leveraging of
the transaction, as the static pool has been amortizing since
closing. As of October 2009 the current outstanding pool has been
de-leveraged to approximately 35% of the original pool balance.
Credit enhancement for class B, class C and class D has
strengthened on the back of the continuing amortization, which has
switched to pro rata from the initial sequential payment.
Cumulative gross default rate and cumulative net default rate was
1% and 0.98% in October 2009 respectively, both of which have been
below Fitch's base case for CGDR (1.6%) and CNDR (1.55%) for the
same period. Total delinquency was at 2.6% of the outstanding
pool as of October 2009.
The structure has not built in any cushion to accommodate for
losses; instead losses are fed through directly to the most junior
EUR53.3 million class F (unrated) via the principal deficiency
ledger. Although excess spread generated by the pool has been
applied to offset the balance in the PDL, as of October 2009, the
class F had a remaining debit of EUR7.5 million. Any rise in
future losses will likely weaken the existing subordination, in
particular at the junior notes level.
Fitch will continue to monitor the transaction.
PROVIDE-VR 2003-1: S&P Junks Rating on Class E Notes
----------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on PROVIDE-
VR 2003-1 PLC's class C, D, and E notes, and affirmed its ratings
on the class A+, A, and B notes.
PROVIDE VR 2003-1 is a partially-funded synthetic German
residential mortgage-backed securities transaction. In March
2008, S&P lowered the ratings on classes D and E, as loss
allocations to the unrated class F notes were already higher than
S&P expected.
The rating actions follow a further deterioration of the
underlying loan portfolio, as well as increasing loss allocations
to the unrated class F notes, due to the low recovery rate (less
than 35%).
The total loss allocation in the transaction is EUR5 million to
date, representing an 82% erosion of the EUR6.1 million class F
notes, which is the transaction's first-loss piece. The remaining
first-loss protection now represents only 0.5% of the outstanding
principal balance. The current defaulted reference amount is
EUR7.9 million. The loss allocation has been caused by low
recovery rates, attributed to market-value decreases in some areas
and the second-lien nature of the mortgages.
Similar to its predecessor PROVIDE VR 2002-1, PROVIDE VR 2003-1 is
a securitization featuring almost exclusively mortgages of second-
lien loan parts, the first-lien parts typically being included in
covered bond issuance.
Given S&P's analysis of the loss experience to date in this
particular pool, S&P has assessed the likelihood of future losses
for both the performing and nonperforming parts of the pool. The
required enhancement levels at the various rating levels indicated
that the class C, D, and E notes had insufficient support to
maintain their current ratings.
Ratings List
PROVIDE-VR 2003-1 PLC
EUR75.75 Million Floating-Rate Credit-Linked Notes
Ratings Lowered
Rating
------
Class To From
----- -- ----
C BBB- A
D B- BB
E CCC- B
Ratings Affirmed
Class Rating
----- ------
A+ AAA
A AAA
B AA
===========
G R E E C E
===========
HELLAS TELECOMMUNICATIONS: Weather Completes Asset Purchase
-----------------------------------------------------------
John Glover at Bloomberg News reports that Weather Investments
SpA, the holding company of Egyptian billionaire Naguib Sawiris,
completed the purchase of Hellas Telecommunications II's assets,
which include Wind Hellas Telecommunications SA.
Bloomberg says Weather's bid was backed by senior bondholders of
Hellas II, the owner of Wind Hellas, and opposed by holders of its
more than EUR1.5 billion (US$2.3 billion) of subordinated debt.
According to Bloomberg, Wind Hellas, which will receive
EUR125 million of cash from Weather, is implementing a plan to
reverse falling sales and declining earnings.
As reported by the Troubled Company Reporter-Europe on Nov. 30,
2009, Bloomberg News said the English High Court approved an order
to place Hellas II into administration. Maggie Mills and Alan
Hudson were appointed by the court as joint administrators to
Hellas II, Bloomberg disclosed, citing a statement from Ernst &
Young.
=============
I R E L A N D
=============
ANGLO IRISH: Criminal Probe to End in a Few Months
--------------------------------------------------
BreakingNews.ie reports that Garda Commissioner Fachtna Murphy has
said criminal investigation into irregularities at Anglo Irish
Bank will be completed within the next few months.
The report relates Mr. Murphy defended the length of time the
gardai has taken to carry out the investigation, saying it is
"complex and detailed".
Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking. The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions. The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions. In addition, at September
30, 2008, its non-retail deposits included deposits from Irish
Life Assurance plc. The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.
* * *
As reported by the Troubled Company Reporter-Europe on Nov. 9,
2009, Fitch affirmed Anglo Irish Bank Corporation Ltd.'s
individual rating at 'E'.
COLEMAN BROTHERS: Eyes Examinership; Has Interim Court Protection
-----------------------------------------------------------------
Laura Noonan at Independent.ie reports that Coleman Brothers
Developments Ltd., the company behind Blarney's EUR650 million
Stoneview development, has secured temporary court protection and
is preparing to make a full application for examinership in the
coming weeks.
The report relates Timothy and Donal Quill, the site's former
owners, launched an attempt to have the development company wound
up, claiming that they have yet to be paid in full for the land.
According to the report, Coleman Brothers' solicitors, Cork-based
firm FitzGerald, on Wednesday night confirmed that the Quill's
wind-up petition has been effectively stopped in its tracks after
Coleman began an application for examinership protection.
DEKANIA EUROPE: S&P Junks Ratings on Eight Tranches
---------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
multiple tranches in Dekania Europe CDO I PLC, Dekania Europe CDO
II PLC, and Dekania Europe CDO III PLC. At the same time, S&P
removed some tranches in all three transactions from CreditWatch
negative. S&P also placed some in Dekania Europe CDO I on
CreditWatch developing and affirmed the rating on one tranche in
that transaction.
The downgrades follow the application of S&P's new corporate CDO
criteria, combined with its application of its trust
preferred/hybrid securities criteria.
In addition, for some of the transactions, the downgrades follow
S&P's assessment of the deterioration in the credit quality of the
collateral supporting the CDO tranches, following increased
exposure to obligors that have either defaulted or experienced
downgrades into the 'CCC' rating category. S&P's analysis
indicates that the concentration of assets rated in the 'CCC'
category is 3.1% and 12.0% for Dekania Europe II and III,
respectively. The proportion of defaulted assets is 8% for both
Dekania Europe II and III. In Dekania Europe I, no assets are
rated in the 'CCC' category or have defaulted.
Portfolios of subordinated debt securities (issued primarily by
European insurance, bank, and homebuilding companies)
collateralize these Dekania Europe transactions. Most assets held
in the portfolios are "hybrid" capital securities. The obligor of
an HCS may defer coupon payments on that security. S&P's analysis
indicates that the concentrations of HCS in the pools are 73%,
70%, and 60% for Dekania Europe I, II, and III, respectively.
The underlying portfolios also include "perpetual" securities,
issued with no stated maturity date. S&P's analysis indicates
that the concentration of perpetual assets is 10%, 20%, and 38%
for Dekania I, II, and III, respectively.
S&P is taking the rating actions having applied its new corporate
criteria to these transactions. The criteria incorporate a
recalibration of the CDO Evaluator model, which tends to return
higher scenario default rates. In addition, the criteria update
also incorporates more conservative cash flow modeling
assumptions.
Of the supplemental tests described in the new corporate CDO
criteria, only the "largest obligor" test applies to CDOs of
hybrid securities. In its analysis, S&P has found that this test
only affected its ratings on classes D1, D2, and E in Dekania
Europe CDO II, and on classes C and D in Dekania Europe CDO III.
Although these three transactions have similar structures, there
are differences in the nature of the underlying assets, in
particular in the industry concentrations. For example, the more
recent transactions feature lower concentrations of insurance
debt, but with a larger portion of the portfolio invested in bank
securities.
For Dekania Europe I and II's combination notes, S&P took into
account the extent to which the rated balance has reduced since
closing.
S&P placed on CreditWatch developing the ratings on Dekania
European CDO I's notes because two assets representing
approximately 8% of that portfolio's principal balance are
currently in the process of receiving a credit estimate as S&P has
withdrawn the ratings on these two particular assets. S&P
withdrew the ratings due to a lack of publicly available
information in one case, and at the issuer's request in the other.
S&P used a conservative estimate of the ratings in S&P's analysis,
and may adjust the ratings assigned to Dekania Europe CDO I's
notes depending on the outcome of the credit estimate reviews.
S&P affirmed the rating assigned to class A1, because these notes
have monoline insurance from Assured Guarantee Corp.
(AAA/Negative/--).
Ratings List
Dekania Europe CDO I PLC
EUR274 Million Fixed- and Floating-Rate Notes
Ratings Affirmed
Class Rating
----- ------
A1 AAA
Ratings Lowered, Removed From CreditWatch Negative,
and Placed on CreditWatch Developing
Rating
------
Class To From
----- -- ----
A2 A-/Watch Dev AAA/Watch Neg
A3 A-/Watch Dev AAA/Watch Neg
B1 BBB/Watch Dev AA/Watch Neg
B2 BBB/Watch Dev AA/Watch Neg
C BB+/Watch Dev A/Watch Neg
D BB-/Watch Dev BBB-/Watch Neg
P combo BB/Watch Dev A/Watch Neg
Q combo BB-/Watch Dev BBB/Watch Neg
R combo BB-/Watch Dev BBB-/Watch Neg
Dekania Europe CDO II PLC
EUR315 Million Fixed- and Floating-Rate Notes
Ratings Lowered and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
A1 A- AAA/Watch Neg
A2A BBB+ AAA/Watch Neg
A2B BBB+ AAA/Watch Neg
B BBB- AA/Watch Neg
C BB- A-/Watch Neg
D1 CCC+ BBB/Watch Neg
D2 CCC+ BBB/Watch Neg
E CCC- BB/Watch Neg
P combo CCC- BB/Watch Neg
Q combo CCC+ BBB+/Watch Neg
R combo CCC+ BBB/Watch Neg
Dekania Europe CDO III PLC
EUR300 Million Floating-Rate Notes
Ratings Lowered and Removed From CreditWatch Negative
Rating
------
Class To From
----- -- ----
A1 BBB AAA/Watch Neg
A2-A BBB- AAA/Watch Neg
A2-B BBB- AAA/Watch Neg
B BB- AA/Watch Neg
C CCC+ A/Watch Neg
D CCC- BBB-/Watch Neg
ELVA FUNDING: S&P Raises Rating on $9.996 Mil. Secured Notes
------------------------------------------------------------
Standard & Poor's Ratings Services raised and removed from
CreditWatch developing its credit rating on Elva Funding PLC's
US$9.996 million secured variable interest rate notes series 2004-
8.
The rating action follows a recent rating change on the underlying
collateral in this European synthetic collateralized debt
obligation transaction, to which it is weak-linked.
S&P had placed the notes on CreditWatch developing on Nov. 13.
Ratings List
Rating Raised and Removed From Creditwatch Developing
Elva Funding PLC
US$9.996 Million Secured Variable Interest Rate Notes
Series 2004-8
Rating
------
To From
-- ----
BB- B-/Watch Dev
LUNAR FUNDING: S&P Junks Rating on EUR10 Mil. Secured Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit rating to
'CCC–' from 'BBB–' on Lunar Funding I Ltd.'s EUR10 million secured
asset-backed credit-linked notes series 2.
The rating action follows a recent rating change on the underlying
collateral in this European synthetic collateralized debt
obligation transaction, to which series 2 is weak-linked.
SAPHIR CDO: S&P Raises Rating on US$5 Mil. Secured Notes to 'BB+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised to 'BB+' from 'BB' and
removed from CreditWatch negative its credit rating on Saphir CDO
(Ireland) PLC's US$5 million fixed-rate secured managed portfolio
credit-linked notes series 12.
The rating action follows S&P's discovery of an administrative
error, which led to us incorrectly downgrade these collateralized
debt obligation notes to BB/Watch Neg from BBB+/Watch Neg on
Sept. 3.
* IRELAND: Corporate Insolvencies Reach 117 in November 2009
------------------------------------------------------------
Laura Noonan at Independent.ie reports that new statistics from
Kavanagh Fennell's insolvencyjournal.ie showed 117 companies ran
into trouble in November, bringing to 1,326 the number of
companies that have been declared insolvent so far in 2009.
The volume of insolvencies recorded in 2009 is now expected to top
industry predictions of 1,400, the report says.
According to the report, the figures show construction continues
to be the hardest hit, with another 31 companies going to the wall
in November which brings the sector's 2009 total to 394.
Creditors' Voluntary Liquidation continues to be the most common
resort used by insolvent companies, with just two applying for
examinership in November and just 12 falling into the hands of
receivers, the report notes.
=========
I T A L Y
=========
PIAGGIO & C SPA: Mulls Sale of EUR150 Mln Seven-Year Bonds
----------------------------------------------------------
Piaggio & C. SpA plans to sell EUR150 million of seven-year bonds,
which are callable after four years, Caroline Hyde and John Glover
at Bloomberg News report, citing a person with knowledge of the
deal.
According to Bloomberg, the person said Banca IMI SpA and JPMorgan
Chase & Co. are managing the sale of the notes.
As reported by the Troubled Company Reporter-Europe on Nov. 30,
2009, Moody's Investors Service has assigned a provisional (P) Ba2
rating to the proposed EUR150 million senior unsecured notes to be
issued by Piaggio. The outlook on Piaggio's ratings is negative.
The notes will be senior unsecured obligation, ranking pari passu
in right of payment with all other senior debt of the company and
will not benefit (initially) from guarantees from operating
subsidiaries. The notes will be issued by Piaggio, main operating
company of the group, where most of the other group's debt is also
located. Therefore the notes will have the same ranking as the
main other bank facilities, and hence the same rating as Piaggio's
Corporate Family Rating, reflecting both the overall probability
of default of the company, to which Moody's has assigned a
probability-of-default rating of Ba2, and a loss-given-default
assessment of LGD 4, 50% (expressed through a six-point symbol
system that orders expected loss severity from lowest to highest
in percentage points), reflective of the relative position of the
notes compared with the Group's capital structure.
Proceeds of the notes issuance will be used to repay existing debt
and, in particular, the approximately EUR60 million remaining
outstanding of the notes issued in 2005 (and due in 2012) and
other short term bank debt maturing between the reminder of 2009
and during 2010.
Piaggio & C. SpA -- http://www.piaggio.com/-- is an Italy-based
company engaged in the design and manufacture of two-wheel motor
vehicles. The Company's product range includes scooters,
motorcycles and mopeds from the 50cc to 1200cc displacement range
distributed under Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi,
Derbi and Scarabeo brands. The Company also manufactures and
distributes three- and four-wheel light commercial vehicles under
the Piaggio Ape, Porter and Quargo brands. In addition, the
Company provides research and development activities for its
vehicles and engines in the production units in Pontedera, Noale,
Mandello del Lario, Barcelona and Baramati. The Company has a
sales network in over 50 countries. Piaggio & C. SpA operates
through its numerous subsidiaries, including Nacional Motor SA,
Piaggio Vehicles Pvt. Ltd, Aprilia World Service BV, Piaggio
Finance SA, Piaggio Vespa BV and Piaggio Vietnam Co. Ltd, among
others.
SEAT PAGINE: Poor Sales as Users, Advertisers Go Online
-------------------------------------------------------
Chiara Remondini at Bloomberg News reports that Seat Pagine Gialle
SpA, Yell Group Plc and PagesJaunes Groupe are struggling to boost
sales as users and advertisers ditch their printed directories for
online searches.
According to Bloomberg, while the companies have beefed up their
own Internet-based offerings, they still depend on phonebooks for
most of their revenue, and their online growth has yet to
compensate for the drop in print-based sales.
Bloomberg says printed directories account for more than two-
thirds of revenue for Seat and Yell and half for PagesJaunes.
Bloomberg relates Seat and Yell posted their first losses in five
years in the last full-year periods. Yell's U.K. print business
fell 20% in the six months through Sept. 30 while online sales
rose 8.7%, Bloomberg notes. Print revenue at Seat's Italian unit
dropped 14% in the first nine months, while Internet sales jumped
30%, Bloomberg discloses. In the first nine months, print sales
at PagesJaunes slid 5.4%, while online revenue rose 9.5%,
Bloomberg states.
About Seat Pagine Gialle
Seat Pagine Gialle SpA -- http://www.seat.it/-- is an Italy-based
company that operates multimedia platform for assisting in the
development of business contacts between users and advertisers.
It is active in the sector of multimedia profiled advertising,
offering print-voice-online directories, products for the Internet
and for satellite and ortophotometric navigation, and
communication services such as one-to-one marketing. Its products
include EuroPages, PgineBianche, Tuttocitta and EuroCompass, among
others. Its activity is divided into four divisions: Directories
Italia, operating through, Seat Pagine Gialle; Directories UK,
through TDL Infomedia Ltd. and its subsidiary Thomson Directories
Ltd.; Directory Assistance, through Telegate AG, Telegate Italia
Srl, 11881 Nueva Informacion Telefonica SAU, Telegate 118 000
Sarl, Telegate Media AG and Prontoseat Srl, and Other Activitites
division, through Consodata SpA, Cipi SpA, Europages SA, Wer
liefert was GmbH and Katalog Yayin ve Tanitim Hizmetleri AS.
* * *
As reported by the Troubled Company Reporter-Europe on Dec. 7,
2009, Moody's Investors Service downgraded the Corporate Family
Rating and the Probability of Default Rating of SEAT Pagine Gialle
SpA to B2 from B1. At the same time, Moody's downgraded the
rating on the company's EUR1.3 billion 8% senior notes due 2014
issued by Lighthouse International Company SA to Caa1 from B3.
The outlook for the ratings is negative.
The rating action follows the company's Q3 2009 earnings call,
where SEAT's management has said that it expects Italian print
revenues for H1 2010 are likely to be similar to those to 9M 2009
(i.e. -13.2% y-o-y), before some improvement that may occur in H2
2010 from a combination of economic recovery and an aggressive
launch of new multimedia packages to acquire new customers.
Moody's understands that, in 2010, (i) management will undertake
cost-cutting measures on a larger scale than contemplated for the
current year, and (ii) online revenue growth should outperform
forecast online ad market growth (10-12%). However, the rating
action reflects that, together with the continuing investment
requirements in its core Italian market, such top-line results are
likely to continue to undermine the group's free cash flow
generation capacity while putting pressure on SEAT's liquidity
profile and deleveraging prospects.
The negative outlook reflects Moody's increased concerns, in light
of the limited visibility, regarding the company's ability to
comfortably remain in compliance with its senior credit facility
covenants, particularly to December 2010.
As reported by TCR-Europe on Nov. 4, 2009, the Financial Times
said that Yell reached agreement with more than 300 creditors to
restructure GBP3.8 billion of its debt.
===================
K A Z A K H S T A N
===================
ALFA TRUST: Creditors Must File Claims by December 16
-----------------------------------------------------
JSC Management Company Alfa Trust is currently undergoing
liquidation. Creditors have until December 16, 2009, to submit
proofs of claim to:
Gogol Str. 39
Almaty
Kazakhstan
ATLANTIS INVEST: Creditors Must File Claims by December 16
----------------------------------------------------------
LLP Atlantis Invset Constructions Ltd. STI is currently undergoing
liquidation. Creditors have until December 16, 2009, to submit
proofs of claim to:
Micro District Jetysu-2, 72-31
Almaty
Kazakhstan
DUY STROY: Creditors Must File Claims by December 16
----------------------------------------------------
LLP Duy Stroy is currently undergoing liquidation. Creditors have
until December 16, 2009, to submit proofs of claim to:
Suleymenov Str. 40A/B-54
Almaty
Kazakhstan
INNOVATSIONNO-TECHNICHESKY: Creditors Must File Claims by Dec. 16
-----------------------------------------------------------------
Creditors of LLP Innovatsionno-Technichesky Stroitelny Centre have
until December 16, 2009, to submit proofs of claim to:
Aimanov Str. 194
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 2, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
INTEGRATSIYA MAKTA: Creditors Must File Claims by December 16
-------------------------------------------------------------
Branch of Joint Kazakh-British Enterprise Integratsiya Makta is
currently undergoing liquidation. Creditors have until
December 16, 2009, to submit proofs of claim to:
Baltakolskoye High Way, without number
Turkestan
South Kazakhstan
Kazakhstan
MARJAN JSC: Creditors Must File Claims by December 16
-----------------------------------------------------
Creditors of JSC Marjan have until December 16, 2009, to submit
proofs of claim to:
Aimanov Str. 194
Almaty
Kazakhstan
The Specialized Inter-Regional Economic Court of Almaty commenced
bankruptcy proceedings against the company on September 2, 2009,
after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of Almaty
Baizakov Str. 273b
Almaty
Kazakhstan
PETROPAVLOVSKOTYN OJSC: Creditors Must File Claims by December 16
-----------------------------------------------------------------
Creditors of OJSC Petropavlovskotyn have until December 16, 2009,
to submit proofs of claim to:
Yakor
Kyzyljarsky District
North Kazakhstan
Kazakhstan
The Specialized Inter-Regional Economic Court of North Kazakhstan
commenced bankruptcy proceedings against the company on
September 16, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of North Kazakhstan
Brusilovsky Str. 60
Petropavlovsk
North Kazakhstan
Kazakhstan
STROY COMMERCE: Creditors Must File Claims by December 16
---------------------------------------------------------
Creditors of LLP Stroy Commerce Service have until December 16,
2009, to submit proofs of claim to:
Ilyaev Str. 24
Shymkent
South Kazakhstan
Kazakhstan
The Specialized Inter-Regional Economic Court of South Kazakhstan
commenced bankruptcy proceedings against the company on
September 10, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
Kazakhstan
TEMIRBANK AO: Creditors to Lose Up to 80.3% in Debt Restructuring
-----------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that Temirbank
creditors face losses of as much as 80.3% as the bank seeks to
restructure its debts.
Bloomberg relates Temirbank said in a statement Nov. 30 it offered
to pay 19.7 cents on the dollar to holders of US$300 million of
senior notes due 2011. According to Bloomberg, the bank proposed
paying 20.03% of face value on US$500 million of notes due 2014.
Bloomberg discloses the bank said holders of both securities will
receive an additional US$10 per US$1,000 of principal if they
accept the offer by 5:00 p.m. Dec. 15.
As reported by the Troubled Company Reporter-Europe on Nov. 25,
2009, Fitch Ratings downgraded Kazakhstan-based Temirbank's
Long-term Issuer Default Rating to 'RD' (Restricted Default) from
'CC', thereby resolving the Rating Watch Negative on the rating.
Temirbank AO (Temirbank JSC) -- http://en.temirbank.kz/-- is a
Kazakhstan-based financial institution rendering a range of
services both to corporate and individual clients. Corporate
customer services include a cash-settlement services, loans,
documentary operations, safe deposit boxes and cash-in-transit
service. Retail customer services include deposits, loans, wire
transfers, payment processing services, travelers' checks, safe
deposit boxes and other services in national and foreign
currencies. It also provides the Internet banking services. The
Bank operates through 21 branches and 121 centers on banking
services on the territory of Kazakhstan. Temirbank AO has one
wholly owned subsidiary Temir Capital BV located in the
Netherlands.
TURAN ESIL: Creditors Must File Claims by December 16
-----------------------------------------------------
Creditors of LLP Turan Esil Ltd. have until December 16, 2009, to
submit proofs of claim to:
Ilyaev Str. 24
Shymkent
South Kazakhstan
Kazakhstan
The Specialized Inter-Regional Economic Court of South Kazakhstan
commenced bankruptcy proceedings against the company on
September 14, 2009, after finding it insolvent.
The Court is located at:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
Kazakhstan
TURKESTAN OIL: Creditors Must File Claims by December 16
--------------------------------------------------------
Creditors of LLP Turkestan Oil Product have until December 16,
2009, to submit proofs of claim to:
The Specialized Inter-Regional
Economic Court of South Kazakhstan
Tynybaev Str. 42
Shymkent
Kazakhstan
The court commenced bankruptcy proceedings against the company on
September 29, 2009
===================
K Y R G Y Z S T A N
===================
KYRGYZ CARS: Creditors Must File Claims by December 30
------------------------------------------------------
LLC Kyrgyz Cars is currently undergoing liquidation. Creditors
have until December 30, 2009, to submit proofs of claim to:
Lev Tolstoy Str. 4/8
Bishkek
Kyrgyzstan
Tel: (+996 312) 65-25-28, 65-29-88
KAZ RUS: Creditors Must File Claims by December 30
--------------------------------------------------
LLC Kaz Rus Impex is currently undergoing liquidation. Creditors
have until December 30, 2009, to submit proofs of claim to:
Usenbayev Str. 153
Bishkek
Kyrgyzstan
=====================
N E T H E R L A N D S
=====================
AEGON BANK: Repays 33% of Dutch Government's EUR3-Bil. Funding
--------------------------------------------------------------
AEGON Bank repaid one third of the EUR3 billion in core capital
the company secured last year through its largest shareholder,
Vereniging AEGON and funded by the Dutch government. AEGON first
announced its intention to repay the Dutch government in August
when it raised EUR 1 billion in a successful equity issue.
The total payment to the Dutch government amounts to
EUR1.15 billion. Under the terms of AEGON's agreement with the
Dutch government, the premium for repayment amounted to
EUR108 million based on the volume weighted average share price of
AEGON shares of EUR4.8315 during the five trading days from
November 23 until November 27. The amount repaid includes accrued
interest from May 22, 2009, of EUR44 million.
Repayment of the initial EUR1 billion to the Dutch government is
an important first step toward full repayment of the core capital
funded by the Dutch government.
About AEGON
As an international life insurance, pension and investment company
based in The Hague, AEGON has businesses in over twenty markets in
the Americas, Europe and Asia. AEGON companies employ
approximately 29,000 people and have over 40 million customers
across the globe
* * *
As reported in the Troubled Company Reporter-Europe on August 6,
2009, Fitch Ratings has assigned Netherlands-based AEGON Bank
these ratings: Long-term Issuer Default Rating 'A', Short-term IDR
'F1', Individual Rating 'D' and Support Rating '1'. The Outlook
for the Long-term IDR is Negative.
ING GROUP: Prices EUR7.5 Rights Issue at 40% Discount
-----------------------------------------------------
Michael Steen at The Financial Times reports that ING priced its
EUR7.5 billion (US$11.2 billion) rights issue on Nov. 27 at a near
40% discount as it raises cash to repay state aid.
The FT recalls European competition officials forced ING to
restructure in recognition of the state aid the group received
during the financial crisis, including a EUR10 billion cash
injection and state guarantees on risky assets.
According to the FT, ING set a price of EUR4.24 per share,
representing a 52% discount from Thursday last week's close and a
37.3% discount to the theoretical ex-rights price.
ING has said that if it succeeds in repaying the first half of the
EUR10 billion in state aid it received -- plus premiums and
additional fees for state guarantees -- by the end of January, it
will enter negotiations with the Dutch government to try to
improve the terms for repaying the second EUR5 billion, the FT
notes.
ING Groep N.V. (ING) -- http://www.ing.com/-- is a global
financial institution offering banking, investments, life
insurance and retirement services. The Company serves more than
85 million private, corporate and institutional customers in
Europe, North and Latin America, Asia and Australia. ING has six
business lines: Insurance Europe, Insurance Americas, Insurance
Asia/Pacific, Wholesale Banking, Retail Banking and ING Direct.
In July 2008, the Company completed the acquisition of CitiStreet
LLC, a retirement plan and benefit service and administration
company in United States. In November 2008, ING Groep N.V.
increased its stake in joint venture Billington Holdings PLC from
50% to 100%. In February 2009, the Company announced that it
closed the sale of its Taiwanese life insurance business to Fubon
Financial Holding Co. Ltd. In April 2009, the Company sold its
non-state pension fund business and its holding company in Russia
to Aviva plc.
=============
R O M A N I A
=============
OZER CONSTRUCTION: Turkish Shareholders Sell Shares to Lawyers
--------------------------------------------------------------
Cristi Moga at Ziarul Financiar reports that the Turkish
shareholders of Ozer Construction, which entered insolvency
proceedings on November 1, have sold their stakes to a group of
three Romanian lawyers.
"We just wanted to solve a problem. Either somebody was going to
handle it, or a big scandal was to follow. I have been working
with Ozer since 2001 or so and I knew how things stood as far as
inflows and debt were concerned at Belleview (the residential
complex started by Ozer in Sinaia i.e.)," the report quoted
Veronica Junger, one of the three lawyers who became shareholders
of Ozer Construction, as saying. "At present around 70% of the
Belleview complex is completed, with half of the apartments, i.e.
one block to be ready for delivery immediately after it is
connected to utilities, with the company to channel a lot of its
efforts towards completing the second block (currently at the
structural stage), as part of the restructuring entailed by the
insolvency proceedings."
The report, citing data published in the Official Gazette, says
the remaining shares are equally distributed between two other
lawyers -- Ionut-Marian Bojan and Veronica-Marinela Trifu.
Ozer Construction posted a EUR43-million turnover in 2008, while
its debt reached EUR34 million, the report discloses, citing data
on the Web site of the Finance Ministry.
Ozer Construction is based in Romania.
===========
R U S S I A
===========
AVTOVAZ OAO: May Get Additional Support From Russia, Putin Says
---------------------------------------------------------------
RIA Novosti reports that Russian Prime Minister Vladimir Putin
said on Thursday that the government is willing to provide
additional support to Avtovaz OAO if its restructuring proves to
be effective.
According to RIA Novosti, Mr. Putin the Russian government has
also decided to provide RUR4.5 billion (US$155 million) in
compensation to the workforce laid off at the auto plant.
"But these funds do not include a possible additional package,
which the Russian government is ready to provide for the effective
actual work in restructuring of the enterprise and its
development," RIA Novosti quoted Mr. Putin as saying.
Daily Bankruptcy Review relates Mr. Putin also said Thursday
Avtovaz will continue to buy most of the parts for its cars from
local manufacturers.
As reported by the Troubled Company Reporter-Europe on Dec. 1,
2009, Bloomberg News said Russia pledged to inject RUR50 billion
(US$1.7 billion) into AvtoVAZ in return for technology from 25%
shareholder Renault SA. Bloomberg disclosed Renault agreed to
contribute engineering know-how worth at least EUR240 million
(US$358 million). Mr. Putin, as cited by Blooomberg, said
Renault's stake "will not decrease" with the recapitalization,
rescinding a warning that the holding could be diluted if the
French carmaker didn't give enough. According to Bloomberg,
Renault said in a statement the cash will help AvtoVAZ restructure
its debt, defend a one-quarter share of its home market and raise
annual output to 900,000 autos.
Based in Tolyatti, Russia, AVTOVAZ OAO (AVTOVAZ JSC) --
http://www.lada-auto.ru/-- is engaged in the manufacture of
passenger cars. The Company's main brands are LADA PRIORA, LADA
Kalina, LADA Samara, LADA 110 and others. The Company is also
involved in the manufacture of automobile components, distribution
of automobiles and spare parts and operation of automobile service
centers. The Company is also active in a variety of other
sectors, such as power supply, transportation, utilities,
construction, insurance, banking and finance. AVTOVAZ OAO sells
its products on the domestic market, as well as exports them to
Kazakhstan, Ukraine, Azerbaijan, Armenia, Egypt, Syria, Greece,
Belarus, Uruguay, Cyprus, Germany and others. It operates through
one representative office located in Moscow, several subsidiaries
and affiliated companies.
COUGAR CLO: Moody's Downgrades Rating on Class B Notes to 'B1'
--------------------------------------------------------------
Moody's Investors Service took these rating actions on notes
issued by Cougar CLO I PLC.
-- EUR105,000,000 Class A Senior Secured Floating Rate Notes
due 2020, Downgraded to Aa3; previously on December 7, 2005
Assigned Aaa
-- EUR38,000,000 Class B Subordinated Notes due 2020 (currently
EUR33,462,945 outstanding), Downgraded to B1; previously on
March 4, 2009 Baa3 Placed Under Review for Possible Downgrade
The ratings assigned to the Class B Subordinated Notes address the
repayment of the Rated Balance on or before the legal final
maturity, where the Rated Balance is equal at any time to the
principal amount of the Class B Subordinated Notes on the issue
date minus the aggregate of all payments made in respect of such
Notes from the issue date to such date, either through interest or
principal payments. Moody's outstanding Rated Balance on the
Class B Subordinated Notes (currently EUR25.6M) may not
necessarily correspond to the outstanding notional amounts
reported by the trustee.
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.
The rating actions 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.
According to Moody's, the rating actions taken on the notes are
also a result of credit deterioration of the underlying portfolio.
This is observed through a decline in the average credit rating as
measured through the portfolio weighted average rating factor
'WARF' (currently 2644), an increase in the amount of defaulted
securities (currently 1.1% of the portfolio), and an increase in
the proportion of securities from issuers rated Caa1 and below
(currently 9.6% of the portfolio). These measures were taken from
the recent trustee report dated 30 October 2009. Moody's also
performed a number of sensitivity analyses, including
consideration of a further decline in portfolio WARF quality. Due
to the impact of all the aforementioned stresses, key model inputs
used by Moody's in its analysis, such as par, weighted average
rating factor, and weighted average recovery rate, may be
different from trustee's reported numbers.
In addition to the quantitative factors that are explicitly
modelled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in this 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.
DEKT-TELE: Creditors Must File Claims by December 13
----------------------------------------------------
Creditors of LLC Dekt-Tele-Kom (TIN 5610086431, PSRN
1055610012204) (Telecommunication) have until December 13, 2009,
to submit proofs of claims to:
A. Pakhomov
Temporary Insolvency Manager
Leninskaya Str. 3/1
460000 Orenburg
Russia
The Arbitration Court of Orenburgskaya will convene at 9:00 a.m.
on January 20, 2010, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?47–5577/09.
The Debtor can be reached at:
LLC Dekt-Tele-Kom
Chicherina Str. 26/1
460000 Orenburg
Russia
ERA-STROY: Creditors Must File Claims by December 13
----------------------------------------------------
Creditors of LLC Era-Stroy (Construction)have until December 13,
2009, to submit proofs of claims to:
D. Krylov
Insolvency Manager
Ryabinovy pereulok 2
305014 Kursk
Russia
The Arbitration Court of Kurskaya commenced bankruptcy proceedings
against the company after finding it insolvent. The case is
docketed under Case No. ?35–2796/09-S8.
The Debtor can be reached at:
LLC Era-Stroy
Apt. 18
Lomakina Str. 17
Kursk
Russia
INTEGRAL-ZHIL: Creditors Must File Claims by December 13
--------------------------------------------------------
Creditors of LLC Integral-Zhil-Stroy (TIN 0253014131, PSRN
1020201436166) (Construction) have until December 13, 2009, to
submit proofs of claims to:
T. Girfanov
Temporary Insolvency Manager
Revolyutsionnaya Str. 96/4
Ufa
Bashkortastan
Russia
The Arbitration Court of Bashkortastan will convene at 11:00 a.m.
on March 23, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?07–15773/2009.
The Debtor can be reached at:
LLC Integral-Zhil-Stroy
Zavodskaya STr. 3
Neftekamsk
452613 Bashkortastan
Russia
INTERNATIONAL INDUSTRIAL: Moody's Gives Neg. Outlook on B1 Rating
-----------------------------------------------------------------
Moody's Investors Service changed the outlook on the B1 long-term
global local and foreign currency deposit ratings and B1 long-term
senior unsecured debt rating of International Industrial Bank to
negative from stable. Its E+ bank financial strength rating
remains unchanged and still carries a stable outlook.
The rating action was driven by Moody's concerns regarding the
bank's high reliance on wholesale debt and on deposits from the
Central Bank of Russia, and the significant volume of funding,
including that from CBR, coming due in the next 12 months. More
positively, the rating agency expects these risks to be partly
mitigated by the bank's ability to refinance its CBR debt through
collateralised credit lines, as opposed to bank deposits, and
observed signs of recovery in the capital markets over the past
few months.
Moody's says that CBR's recently announced strategy to reduce the
volume of its uncollateralized liquidity support to the banking
sector will require IIB to repay over RUB43 billion (close to one-
third of its non-equity funding at 1 October 2009) by the end of
2010. To meet these requirements, the bank would need to cut its
loan book by 30%-40%, which would have a severe effect on its
franchise and earnings generation capacity. Furthermore, the
ability of IIB's borrowers to repay their loans without
refinancing remains constrained by the still challenging operating
environment in Russia.
IIB's market funding that matures by the end of Q2 2010 accounted
for almost 15% of its total liabilities as of the end of Q2 2009.
In the absence of CBR funding, Moody's cautions that such
concentration on wholesale debt might force the bank to further
decrease its lending activity, thus impairing its revenue
generation power and market position.
If IIB is not successful in decreasing its reliance on its short-
term wholesale sources of funding, its long-term ratings could be
downgraded. At the same time, Moody's notes that a successful
diversification and management of the bank's funding base could
lead to a change in the outlook back to stable, provided that
asset quality and capital adequacy indicators remain favorable.
Moody's last rating action on IIB was on 11 June 2007, when the
rating agency assigned a B1 long-term foreign currency rating to
the bank's senior unsecured loan participation notes.
Headquartered in Moscow, IIB reported total IFRS assets of
RUR168 billion (US$5.4 billion) at 30 June 2009 and net income of
RUR3.3 billion (US$107 million) for H12009.
KOMPLEKT-OIL: Belgorodskaya Bankruptcy Hearing Set December 10
--------------------------------------------------------------
The Arbitration Court of Belgorodskaya will convene at 9:30 a.m.
on December 10, 2009, to hear bankruptcy supervision procedure on
LLC Komplekt-Oil (TIN 3123106475)(Road-Construction Equipment
Manufacturing). The case is docketed under Case No. ?08–
4545/2009–11B.
The Temporary Insolvency Manager is:
Ye.Govorova
Post User Box 8
394038 Voronezh
Russia
The Debtor can be reached at:
LLC Komplekt-Oil
Sumskaya Str. 24
308015 Belgorod
Russia
LES-TORG: Creditors Must File Claims by December 13
---------------------------------------------------
Creditors of LLC Les-Torg (TIN 2918008110, PSRN 1062918013014)
(Wood Industry)have until December 13, 2009, to submit proofs of
claims to:
A. Gubanov
Temporary Insolvency Manager
Apt. 8B
60 let Oktyabrya Str. 19
Nyandoma
164200 Arkhangelskaya
Russia
The Arbitration Court of Arkhangelskaya will convene on
February 4, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?05–13499/2009.
The Debtor can be reached at:
LLC Les-Torg
Industrialnay Str. 4a
Nyandoma
164200 Arkhangelskaya
Russia
MDM BANK: Fitch Assigns 'BB-' Long-Term Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has assigned Russian MDM Bank's a Long-term local
currency Issuer Default Rating of 'BB-' with a Stable Outlook.
Fitch has also assigned the bank's upcoming RUB5 billion Series
BO-01 three-year maturity senior bonds a Long-term local currency
rating of 'BB-' and National Long-term rating of 'A+(rus)'.
The bank's other ratings are Long-term foreign currency Issuer
Default Rating 'BB-' with a Stable Outlook, Short-term IDR 'B',
Individual Rating 'D', National Long-term rating 'A+(rus)' with a
Stable Outlook, Support Rating '4', and Support Rating Floor 'B'.
The interest rate for the notes will be determined before their
placement at between 13%-13.5%. MDM's notes will rank equally
with the claims of other senior unsecured creditors, save the
claims of retail depositors, which under Russian law rank above
those of other senior unsecured creditors. Retail deposits
accounted for 20% of MDM's total liabilities at end-9M09,
according to statutory accounts.
MDM is the 12th-largest bank by assets and eighth-largest by
equity in Russia at end-Q309. It is well-diversified across
corporate, SME and retail business lines in central Russia, the
Urals and Siberia. Sergey Popov and CEO Igor Kim respectively
hold 54% and 11% of the bank.
In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings. Collectively these
ratings drive Fitch's Long- and Short-term IDRs.
MELENKI-ZHIL: Creditors Must File Claims by December 13
-------------------------------------------------------
Creditors of LLC Melenki-Zhil-Stroy (TIN 3319005908, PSRN
1023341068300) (Construction)have until December 13, 2009, to
submit proofs of claims to:
N. Savinova
Temporary Insolvency Manager
Radiozavodskoe shosse 2a
Murom
602264 Vladimirskaya
Russia
The Arbitration Court of Vladimirskaya will convene at 1:30 p.m.
on April 8, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?11–12595/2009.
The Debtor can be reached at:
LLC Melenki-Zhil-Stroy
60 let Oktyabrya Str. 1
Melenki Vladimirskaya
Russia
NOVKLEM LLC: Creditors Must File Claims by December 13
------------------------------------------------------
Creditors of LLC Novklem (TIN 5321031296, RVC 532101001, PSRN
1025300795277) (Print Media Materials Production) have until
December 13, 2009, to submit proofs of claims to:
A. Krasilnikov
Temporary Insolvency Manager
Chekhova Str. 4-90
160009 Vologda
Russia
The Arbitration Court of Novgorodskaya will convene at 2:30 p.m.
on January 14, 2010, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?44–2905/2009.
The Debtor can be reached at:
LLC Novklem
Bazovy pereulok 17
173003 Velikiy Novgorod
Russia
PRESTIZH-STROY: Creditors Must File Claims by December 13
---------------------------------------------------------
Creditors of LLC Prestizh-Stroy (Construction) have until
December 13, 2010, to submit proofs of claims to:
S. Dzhembulatov
Temporary Insolvency Manager
Proletarskaya Str. 216
460035 Orenburg
Russia
The Arbitration Court of Orenburgskaya will convene at 9:30 a.m.
on February 24, 2010, to hear bankruptcy supervision procedure.
The case is docketed under Case No. ?47–8616/09.
The Debtor can be reached at:
LLC Prestizh-Stroy
Nizhniy proezd 5
460050 Orenburg
Russia
REGION-SEVER: Creditors Must File Claims by December 13
-------------------------------------------------------
Creditors of LLC Reion-Sever-Stroy (TIN 8904050659, PSRN
1068904022032) (Construction) have until December 13, 2009, to
submit proofs of claims to:
Ye.Martyanova
Temporary Insolvency Manager
Melnikayte Str. 106-253
Tumen
Russia
The Arbitration Court of Yamalo-Nenetskiy will convene at
10:30 a.m. on February 16, 2010, to hear bankruptcy supervision
procedure. The case is docketed under Case No. ?81–4945/2009.
The Debtor can be reached at:
LLC Reion-Sever-Stroy
Geologorazvedchikov Str. 5
629300 Novy Urengoy
Russia
ROSAGROLEASING: Fitch Cuts LT Issuer Default Rating to 'BB+'
------------------------------------------------------------
Fitch Ratings has downgraded Russia-based Rosagroleasing's Long-
term Issuer Default Rating to 'BB+' from 'BBB-' and placed the
rating on Rating Watch Negative. A full list of rating actions is
detailed at the end of this announcement.
The downgrade reflects Fitch's increased concerns about the
probability that support would be forthcoming for RAL, in case of
need, given the limited independent financial resources of the
company's main sponsor, the Russian Ministry of Agriculture (MOA).
Fitch believes the ability and willingness of other government
bodies to provide support to RAL in all circumstances is
questionable. However, RAL's ratings continue to reflect the
still significant probability of government support in case of
need, given the company's policy role and ownership. RAL's credit
profile is also supported by its very low leverage, with an equity
to assets ratio of 72% at 1 November 2009 under local accounting
standards, and limited market funding.
The RWN follows recent claims made by Russia's General Prosecutor
Office that RAL had acted in violation of Russian state interests
in certain areas of its operations. Fitch is not able to comment
on the veracity of these claims and notes that RAL intends to
challenge them at least in part. However, the RWN reflects the
risk that an investigation does reveal the corporate governance
failures at RAL that are indicated by the GPO's claims and could
potentially result in lasting changes in RAL's status and
relations with other government bodies, and therefore also in the
probability of the company receiving future support in case of
need. The RWN also factors in uncertainty resulting from a
comment recently made by the Minister for Economic Development
that RAL may be included in the Russian government's privatization
plan for 2011. This is yet to be confirmed (or ruled out) by any
official privatization plans.
Fitch will resolve the RWN based on the results of the
investigation of the GPO's claims and any clarification concerning
the potential privatization of the company. RAL's future ratings
will also take account of the company's strategy, operations,
leverage and funding structure.
RAL is the largest leasing company in Russia by capital, and is
wholly owned by the Federal Property Agency. It specializes in
providing subsidized leases to the agriculture sector. At end-
October 2009 RAL had about RUB20bn of advances on the balance
sheet, which represented nearly 20% of its assets.
The rating actions are:
-- Long-term foreign currency IDR downgraded to 'BB+' from
'BBB-'; Placed on RWN
-- Short-term foreign currency IDR downgraded to 'B' from 'F3'
-- Support rating: downgraded to '3' from '2'; Placed on RWN
-- Support rating floor revised to 'BB+' from 'BBB-'; Placed on
RWN
-- National Long-Term rating: downgraded to 'AA(rus)' from
'AA+(rus)'; Placed on RWN
UC RUSAL: Won't Resart Aluminum Capacity, Oleg Derispaka Says
-------------------------------------------------------------
Simon Casey and Denis Maternovsky at Bloomberg News report that
Oleg Deripaska, United Co. Rusal's owner and chief executive
officer, said the company won't restart shuttered capacity while
demand for the lightweight metal is still recovering.
"Our policy is very responsible," Bloomberg qouted Mr. Deripaska
as saying in an interview. There "will be no restarts."
Bloomberg recalls Rusal and competing aluminum producers Rio Tinto
Group and Alcoa Inc. cut output this year after commodity prices
slumped as the global economy contracted.
As reported by the Troubled Company Reporter-Europe, Bloomberg
News said Rusal plans to sell a 10% stake in Hong Kong this year
to help repay more than US$14 billion of debt. The Troubled
Company Reporter-Europe, citing the Financial Times, reported on
Dec. 4, 2009, that Rusal last week concluded a landmark
restructuring of its nearly US$17 billion debt owed to several
dozen creditors -- including US$7.4 billion owed to international
banks -- with Mr. Deripaska managing to retain his controlling
stake, in a move that paves the way for the IPO to go ahead.
About Rusal
Headquartered in Moscow, Russia, United Co. RUSAL --
http://www.rusal.com/-- is among the world's top aluminum
producers, along with Rio Tinto Alcan and Alcoa. Formed in 2000
from various parts of the old Soviet state apparatus, RUSAL
produces about 4 million tons of aluminum, 11 million tons of
alumina, and 6 million tons of bauxite. Its aluminum business
include packaging and foil operations in addition to a network of
smelters. Those Soviet spare parts were significantly augmented
in 2007 when the company merged with fellow Russian aluminum
producer Sual and Glencore's alumina unit. RUSAL is majority
owned by Board member Oleg Deripaska, who had owned the company
completely prior to the merger.
ZAVOLZHSKIY CHEMICAL: Creditors Must File Claims by December 13
---------------------------------------------------------------
Creditors of LLC Zavolzhskiy Chemical Plant (TIN 3710006355, PSRN
1063703008214) have until December 13,2009, to submit proofs of
claims to:
A. Sokolov
Temporary Insolvency Manager
Office 408
15 proezd4
153006 Ivanovo
Russia
Tel: (4932)47-54-41.
The Arbitration Court of Ivanovskaya will convene at 9:45 a.m. on
March 31, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?17–7158/2008.
The Debtor can be reached at:
LLC Zavolzhskiy Chemical Plant
Zavodskaya Str. 1
Zavolzhsk
Ivanovskaya
Russia
ZHIL-STROY: Creditors Must File Claims by December 13
-----------------------------------------------------
Creditors of LLC Zhil-Stroy-Servis (Construction) have until
December 13, 2009, to submit proofs of claims to:
Z. Vildanov
Temporary Insolvency Manager
Post User Box 22
Naberezhnye Chelny
423827 Tatarstan
Russia
The Arbitration Court of Tatarstan will convene at 9:20 a.m. on
February 4, 2010, to hear bankruptcy supervision procedure. The
case is docketed under Case No. ?65–17429/2009-SG4–31.
The Court is located at:
The Arbitration Court of Tatarstan
Courtroom 22
Building 1
Kremlin
Kazan
Tatarstan
Russia
The Debtor can be reached at:
LLC Zhil-Stroy-Servis
Office 33
Chulman prospect 40/45
Tukaevskiy
Naberezhnye Chelny
423832 Tatarstan
Russia
* NIZHNIY NOVGOROD: Fitch Assigns 'BB-' Rating on Domestic Bonds
----------------------------------------------------------------
Fitch Ratings has assigned the Nizhniy Novgorod Region's upcoming
issue of a RUB3 billion domestic bond due December 2012 an
expected Long-term local currency rating of 'BB-' and expected
National Long-term rating of 'A+(rus)'. The region is rated Long-
term foreign and local currency 'BB-' with Stable Outlook, Short-
term foreign currency 'B', and National Long-term 'A+(rus)' with
Stable Outlook.
The bond issue has a fixed-rate step-down coupon. The initial
coupon rate will be set at the auction on 2 December 2009. The
principal will be amortized by 30% of the initial bond issue value
on 29 November 2010, and by another 30% of the initial value on 26
November 2011. The remaining 40% of the initial value will be
redeemed on 2 December 2012. The proceeds from the new bond will
be used to finance the region's budget deficit and to refinance
outstanding debt.
The final rating is contingent upon the receipt of final documents
conforming to information already received.
The Nizhniy Novgorod Region is located in central Russian
Federation, contributing 1.7% of the RF's gross domestic product
in 2007 and accounting for 2.4% of the country's population.
===============
S L O V E N I A
===============
ISTRABENZ D.D.: Creditors Accept Debt Restructuring Plan
--------------------------------------------------------
Slovenska Tiskovna Agencija reports that banks owed money by
Istrabenz d.d. agreed on Wednesday to accept a debt restructuring
plan for the company.
As reported by the Troubled Company Reporter-Europe on Nov. 12,
2009, Bloomberg News said Petrol proposed a debt restructuring and
recapitalization plan to help Istrabenz avert bankruptcy. Citing
Boris Dolamic, the court-appointed receiver for Istrabenz,
Bloomberg disclosed the company, which declared insolvency in
March, owes 19 banks in Slovenia EUR436 million (US$6 million).
On Nov. 20, 2009, the Troubled Company Reporter-Europe, citing
Bloomberg News, reported that Petrol said creditors including Nova
Ljubljanska Bank d.d. and Nova Kreditna Banka Maribor d.d. asked
for additional guarantees for EUR30 million (US$45 million) of
Istrabenz subordinated debt along with a 10% capital increase
proposed by Petrol.
Istrabenz dd -- http://www.istrabenz.si/-- is a Slovenia-based
holding responsible for the asset management and supervision of
the Istrabenz Group members. The Company has developed
investments in the number of divisions: Energy, which covers the
gas business, production and distribution of energy, transshipment
and storage of oil derivatives; Tourism, which offers hotel,
catering, wellness and congress services; Investments, which deals
with advertising, financial services and technical consulting;
Food, which markets food products, and Information Technology that
provides information support to the companies of the Istrabenz
Group. As of December 31, 2008 Istrabenz Group comprised 77
companies. The Company operates a number of subsidiaries,
including wholly owned Istrabenz Turizem dd and Istrabenz Marina
Invest doo.
=========
S P A I N
=========
BBVA HIPOTECARIO: Moody's Cuts Rating on Series C Notes to 'Ba3'
----------------------------------------------------------------
Moody's Investors Service has taken these actions on the long-term
credit ratings of these notes issued by BBVA Hipotecario 3, FTA:
-- EUR925.7 million series A2 notes due 2038, confirmed at Aaa,
previously placed under review for downgrade on 23 March 2009.
-- EUR55.9 million series B notes due 2038, downgraded to A3,
previously A2 and placed under review for downgrade on 23
March 2009.
-- EUR18.9 million series C notes due 2038, downgraded to Ba3,
previously Baa2 and placed under review for downgrade on 23
March 2009.
Moody's initially assigned definitive ratings in June 2005.
The rating action concludes the rating review resulting from
Moody's revision of its methodology for granular SME portfolios in
Europe, the Middle East and Africa. This revised methodology was
introduced on 17 March 2009 and the affected transactions had been
subsequently placed on review for possible downgrade on 23 March
2009.
As a result of its revised methodology, Moody's has reviewed its
assumptions for BBVA Hipotecario 3's collateral portfolio, taking
into account anticipation of performance deterioration in the
current down cycle, and the exposure of the transaction to the
real estate sector (either through security in the form of a
mortgage or debtors operating in the real estate sector). The
deterioration of the Spanish economy has been reflected in the
Moody's negative sector outlook on the Spanish SME securitization
transactions ("EMEA ABS, CMBS & RMBS Asset Performance Outlooks",
published by the rating agency in July 2009). To date, this
transaction has been performing better than the Spanish SME index.
As of September 2009, the 90 days cumulative delinquency rate
reached 1.77% of original portfolio balance.
As a result of the above, Moody's has revised its assumption of
the default probability of the SME debtors to an equivalent rating
in the single B-range for the debtors operating in the real estate
sector, and in the low Ba-range for the non-real-estate debtors.
Additionally, loans in arrears are notched down depending on the
length of time the loans have been in arrears, and performing
loans not in building and real estate sector with relatively long
seasoning are notched up depending on their actual seasoning.
At the same time, Moody's estimated the remaining weighted average
life of the portfolio to equal 2.30 years. As a consequence,
these revised assumptions have translated into an increase of the
cumulative mean default assumption for the current portfolio equal
to 5.80%. This implies a revised cumulative mean default
calculation for the entire transaction since closing equal to
3.50% of original portfolio balance. Moody's original mean
default assumption was 3.10% of original balance, with a
coefficient of variation of 54%. Given the lack of granularity of
the portfolio with an effective number of borrowers around 633,
the rating agency used a Monte-Carlo simulation to derive the
probability function of the default with a resulting coefficient
of variation of 54%. Fixed recoveries were modelled, assuming a
mean equal to 60%, while fixed values in the 65% to 45% range were
tested at closing. The revised constant prepayment rate
assumption is now 5%, while the CPR assumption was 12% at closing.
In summary, Moody's concluded that the negative effects of the
revised default assumptions were not fully offset by the increased
credit support available for the outstanding series B and C notes
and the limited reduction in the remaining life of the portfolio
and notes.
BBVA Hipotecario 3 is a securitization fund, which purchased a
pool of loans granted to Spanish SMEs and individuals by BBVA. At
closing, in June 2005, the portfolio consisted of 6,795 loans.
The loans were originated between 1996 and 2004, with a weighted
average seasoning of 2.3 years and a weighted average remaining
term of 9.64 years. Geographically, the pool was concentrated in
Andalusia (22%), Catalonia (19%) and Madrid (13%). At closing,
the concentration in the real estate sector according to Moody's
classification was around 36% of the original pool balance.
As of September 2009, the number of loans in the portfolio
amounted to 3,920, the weighted average seasoning is 6.41 years
and the remaining term was 7 years. The concentration levels per
industry and region are similar to the levels at closing with a
lower exposure in the building and real estate sector equal to 32%
of current portfolio, which is in slightly below the sector-
average concentration in the SME ABS portfolios. The pool factor
was 34%.
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.
Moody's is closely monitoring the transaction.
BBVA LEASING: Fitch Junks Ratings on Two Classes of Notes
---------------------------------------------------------
Fitch Ratings has downgraded BBVA Leasing 1 FTA's notes, removed
them from Rating Watch Negative, and assigned these Negative
Outlooks and Recovery Ratings:
-- Class A1 EUR440.7 million notes; downgraded to 'BB' from
'AAA'; removed from RWN; assigned a Negative Outlook;
assigned a Loss Severity rating of 'LS-1'
-- Class A2 EUR943.7 million notes: downgraded to 'BB' from
'AAA'; removed from RWN; assigned a Negative Outlook;
assigned a Loss Severity rating 'LS-1'
-- Class B EUR82.5 million notes: downgraded to 'CCC' from
'AA-'; removed from RWN; assigned a Recovery Rating of 'RR4'
-- Class C EUR61.3 million notes: downgraded to 'C'' from 'BBB';
removed from RWN; assigned a Recovery Rating of 'RR5'
The transaction is a securitization of leasing contracts
originated in Spain by Banco Bilbao Vizcaya Argentaria S.A. (rated
'AA-'/'F1+', Outlook Positive). The underlying collateral
consists of real estate finance leases and chattel finance leases.
The rating actions follow an updated analysis of the transaction's
performance and considers reported defaults to date, the
significant growth in the delinquency pipeline in recent quarters,
and recoveries recorded on defaulted loans. In response to
weakening Spanish macro-economic conditions, the transaction has
reported a sharp deterioration in credit performance in recent
quarters which is worse than the agency's initial expectations at
closing. As difficult economic conditions are expected to persist
through the end of 2010, Fitch expects collateral performance to
remain under pressure over the near-term and that late stage
arrears and defaults will increase further.
As part of its review process, Fitch also updated its base case
default expectation for the performing collateral balance of the
portfolio as well as the Recovery Rate expectations. These
revised assumptions, coupled with the credit performance reported
to date, including the profile of the transaction's delinquency
pipeline, results in limited credit protection being available to
noteholders and explains the downgrades noted above.
As of end October 2009, the 3+ months' arrears stood at
EUR106 million and represented 6.63% of the outstanding collateral
balance, compared to 1.66% at end 2008.
The sharp rise in arrears and doubtful loans has caused the
reserve fund to be substantially depleted, reducing it to
EUR9.5 million as of November 2009, representing 23% of its
initial amount. Due to surging arrears within the transaction,
Fitch expects the reserve fund to be fully depleted in the coming
quarters with limited prospects for replenishment given the
relatively weak recoveries reported to date.
IM BANCO: Fitch Junks Rating on Class C Notes to 'CC' From 'B'
--------------------------------------------------------------
Fitch Ratings has affirmed IM BANCO POPULAR FTPYME 1 senior notes
and downgraded the Class C notes. The B and C notes are removed
from Rating Watch Negative. The RWN was assigned in August 2009
pending full analysis after the implementation of Fitch SME CDO
revised rating criteria for European granular corporate balance-
sheet securitizations. The rating actions are:
-- EUR 361,757,848 class A(G) notes (ISIN ES0347847016):
affirmed at 'AAA'; Outlook Stable;
-- EUR34,560,564 class B notes (ISIN ES0347847024): affirmed at
'A', off RWN; assigned Negative Outlook and a Loss Severity
(LS) rating of 'LS-2';
-- EUR44,614,546 class C notes (ISIN ES0347847032): downgraded
to 'CC' from 'B'; off RWN.
IM BANCO POPULAR FTPYME 1 is a cash flow securitization of an
initial EUR2bn static pool of loans granted by Banco Popular
Espanol SA (rated 'AA-'/'F1+'; Negative Outlook) to small- and
medium-sized Spanish enterprises.
Although the downgrade primarily reflects the implementation of
Fitch's revised SME CDO rating criteria -- which were used to
determine the loss rates -- they also reflect increasing portfolio
concentration risk, difficult macro-economic conditions and
reducing credit enhancement as the reserve funds are used to
redeem outstanding notes in accordance with the transaction
documents and thus provision for loans more than 12 months in
arrears.
The class A(G) notes are affirmed as they continue to benefit from
a guarantee from the Kingdom of Spain (rated 'AAA'; Outlook
Stable). As a result, the notes are credit-linked to Spain's
rating, and hence do not have a Loss Severity rating.
The class B notes are affirmed reflecting adequate CE and strong
recovery expectation given 93.7% of the portfolio is secured with
a weighted average loan-to-value of 38.9%. The rating on the
class B notes is likely to be affected if actual recoveries are
lower than the recovery expectation, which is reflected in the
Negative Outlook. The downgrade of the class C notes reflects the
weak CE available to this class as this class cannot withstand the
default of the two largest obligors at a stressed recovery.
In the analysis undertaken, assumptions on probability of default
and loss severity were made with regards to current delinquencies
as well as the performing portfolio. Fitch has assumed the
probability of default of the unrated SME loans to be commensurate
with the 'B' rating category. Based on observed delinquencies and
the origination process of the originating banks in Spain, the
benchmark probability of default is adjusted upward or downward.
Delinquent loans are notched down depending on the time the loans
have been in arrears. Recoveries for loans secured by first lien
real estate is adjusted for property indexation and market value
stress based on the criteria but second lien mortgages are treated
as senior unsecured loans.
IM CAJAMAR: Fitch Downgrades Rating on Class B Notes to 'B'
-----------------------------------------------------------
Fitch Ratings has downgraded IM Cajamar Empresas 1 FTA and removed
the notes from Rating Watch Negative. The RWN was assigned in
August 2009 pending full analysis after the implementation of
Fitch revised SME CDO rating criteria for European granular
corporate balance-sheet securitizations. The rating actions are:
-- EUR678,790,100 class A notes (ISIN ES0347525000): downgraded
to 'A+' from 'AAA'; assigned Stable Outlook and a Loss
Severity (LS) rating of 'LS-1'
-- EUR80,000,000 class B notes (ISIN ES0347525018): downgraded
to 'B' from 'BB'; removed from RWN; assigned Stable Outlook
and a Loss Severity (LS) rating of 'LS-3'.
IM Cajamar Empresas 1 FTA is a cash flow securitization of an
initial EUR1.08 billion static pool of loans granted by Caja Rural
Intermediterranea, Sociedad Cooperativa de Credito (rated
'A-'/'F1; Negative Outlook) to small and medium-sized Spanish
enterprises and self-employed individuals. IM Cajamar Empresas 1
FTA is a limited liability special purpose vehicle incorporated
under the laws of Spain and is represented by InterMoney
Titulizacion SGFT, SA (the Sociedad Gestora), a special purpose
management company with limited liability, incorporated under the
laws of Spain.
Although the downgrades primarily reflect the implementation of
Fitch's revised SME CDO rating criteria -- which were used to
determine the loss rates -- they also reflect increasing portfolio
concentration risk, difficult macro-economic conditions and
current credit enhancement levels.
As of 31 October 2009, 90+ day delinquencies were 1.7% of the
pool. Although credit enhancement for both the class A and B
notes have increased to 15.8% and 5.3%, from 11.1% and 3.7%,
respectively, at closing, due to amortization, this is not enough
to offset the deterioration in the portfolio. The reserve fund is
fully funded to its required amount of EUR40m.
In the analysis undertaken, assumptions on probability of default
(PD) and loss severity were made with regards to current
delinquencies as well as the performing portfolio. Fitch has
assumed the probability of default of the unrated SME loans to be
commensurate with the 'B' rating category. Based on observed
delinquencies and the origination process of the originating banks
in Spain, the benchmark probability of default is adjusted upward
or downward. Delinquent loans are notched down depending on the
time the loans have been in arrears. Recoveries for loans secured
by first lien real estate is adjusted for property indexation and
market value stress based on the criteria but second lien
mortgages are treated as senior unsecured loans.
IM GRUPO: Fitch Affirms Rating on Class E Notes at 'CC'
-------------------------------------------------------
Fitch Ratings has affirmed IM Grupo Banco Popular EMPRESAS 1 and
removed the notes from Rating Watch Negative. The RWN was
assigned in August 2009 pending full analysis after the
implementation of Fitch revised SME CDO rating criteria for
European granular corporate balance-sheet securitizations. The
rating actions are:
-- EUR576,630,894 class A2 notes (ISIN ES0347843015): affirmed
at 'AAA'; removed from RWN; assigned Stable Outlook and a
Loss Severity (LS) rating of 'LS-1';
-- EUR28,800,000 class B notes (ISIN ES0347843023): affirmed at
'AA'; removed from RWN; assigned Stable Outlook and 'LS-3';
-- EUR27,000,000 class C notes (ISIN ES0347843031): affirmed at
'A'; removed from RWN; assigned Stable Outlook and 'LS-3';
-- EUR54,900,000 class D notes (ISIN ES0347843049): affirmed at
'BB'; removed from RWN; assigned Stable Outlook and 'LS-2';
-- EUR32,400,000 class E notes (ISIN ES0347843056): affirmed at
'CC'; removed from RWN.
IM Grupo Banco Popular EMPRESAS 1 is a cash flow securitization of
an initial EUR1.8 billion static pool of SME loans granted by six
entities of Grupo Banco Popular including Banco Popular Espanol SA
(rated 'AA-'/'F1+; Negative Outlook), Banco de Andalucia (which
has since been absorbed into Banco Popular Espanol SA) and Banco
de Castilla, Banco de Credito Balear, Banco de Galicia and Banco
de Vasconia.
The affirmations reflect the robustness of the transaction and its
ability to withstand Fitch's revised view on default probability,
recovery and correlation assumptions as detailed in the SME CDO
rating criteria. The strength of the transaction stems from the
increased credit enhancement, due to structural de-leveraging and
collateral characteristics.
As of 31 October 2009, 90+ day delinquencies were 2%, down from
3.4% in May 2009. The portfolio is 91.9% secured with a weighted
average loan-to-value of 41.5%. The reserve fund is currently
EUR42.6 million, which is slightly short of the required amount of
EUR45 million (or 2.5% of the original balance of the collateral).
In the analysis undertaken, assumptions on probability of default
and loss severity were made with regards to current delinquencies
as well as the performing portfolio. Fitch has assumed the
probability of default of the unrated SME loans to be commensurate
with the 'B' rating category. Based on observed delinquencies and
the origination process of the originating banks in Spain, the
benchmark probability of default is adjusted upward or downward.
Delinquent loans are notched down depending on the time the loans
have been in arrears. Recoveries for loans secured by first lien
real estate is adjusted for property indexation and market value
stress based on the criteria but second lien mortgages are treated
as senior unsecured loans.
RURALPYME 2: Fitch Affirms Rating on Class D Notes at 'CC'
----------------------------------------------------------
Fitch Ratings has affirmed Ruralpyme 2 FTPYME, FTA's class A2(G)
and D notes and downgraded the class A1, B and C notes. All
classes of notes which were on Rating Watch Negative have been
removed from RWN. The RWN was assigned in August 2009 pending
full analysis after the implementation of Fitch's revised SME CDO
rating criteria for European granular corporate balance-sheet
securitizations. The rating actions are:
-- EUR197,837,663 class A1 notes (ISIN ES0374352005): downgraded
to 'AA' from 'AAA'; off RWN; assigned Stable Outlook and a
Loss Severity (LS) rating of 'LS-1'
-- EUR53,700,000 class A2(G) notes (ISIN ES0374352013): affirmed
at 'AAA'; Stable Outlook
-- EUR29,100,000 class B notes (ISIN ES0374352021): downgraded
to 'BBB+' from 'A', off RWN; assigned Negative Outlook and
'LS-3'
-- EUR23,200,000 class C notes (ISIN ES0374352039): downgraded
to 'BB-' from 'BB'; off RWN; assigned Negative Outlook and
'LS-4'
-- EUR24,050,000 class D notes (ISIN ES0374352047): affirmed at
'CC'; off RWN
Ruralpyme 2 FTPYME, FTA is a cash flow securitization of an
initial EUR593 million static pool of loans granted by 14 Spanish
rural cooperative banks (cajas rurales) to small- and medium-sized
enterprises.
Although the downgrades primarily reflect the implementation of
Fitch's revised SME CDO rating criteria, which were used to
determine the loss rates, they also reflect increasing delinquency
rates and difficult macro-economic conditions in Spain as the
reserve funds are used to redeem outstanding notes in accordance
with the transaction documents and thus provision for loans more
than 18 months in arrears.
As of 26 October 2009, the 90+ delinquency rate had increased to
6.6% from 1.7% in October 2008. The 12-18 months delinquency rate
is currently 1.9% and has shown a steady increase over the last
year. If this trend continues, the affected loans will be
classified as defaulted according to the transaction documents,
and available funds in the reserve fund would be used for
provisioning.
Currently, the portfolio exhibits some industry concentration with
23.4% of the portfolio exposed to the agriculture sector and 21.2%
exposed to the real estate and construction sectors. The class A1
credit enhancement has increased to 25.1% from 12.9% at closing,
however, this increase in CE is not sufficient to offset the
deterioration of the portfolio. The class A2(G) notes have been
affirmed as they continue to benefit from a guarantee from the
Kingdom of Spain (rated 'AAA'; Outlook Stable). The ratings and
Outlooks on the class B and C notes reflect concerns over rising
delinquencies and their subordinated positions in the capital
structure. The class D notes have been affirmed due to the
continued weak level of CE available.
The agency's analysis included assumptions on the probability of
default and loss severity with regards to current delinquencies as
well as the performing portfolio. Fitch has assumed the PD of the
unrated SME loans to be commensurate with the 'B' rating category.
Based on observed delinquencies and the origination process of the
originating banks in Spain, the benchmark PD is adjusted upward or
downward. Delinquent loans are notched down depending on the time
the loans have been in arrears. Recoveries for loans secured by
first lien real estate are adjusted for property indexation and
market value stress based on the agency's criteria, but second
lien mortgages are treated as senior unsecured loans.
TDA CAM: Moody's Cuts Ratings on Three Classes of Notes to 'C'
--------------------------------------------------------------
Moody's Investors Service downgraded the ratings of 22 classes of
notes, confirmed the ratings of two classes of notes and kept on
review one class of notes issued by TDA CAM 5, FTA, TDA CAM 6;
FTA, TDA CAM 7, FTA, TDA CAM 8, FTA, TDA CAM 9, FTA and TDA CAM
10, FTA. A detailed list of rating actions can be found at the
end of this press release.
Moody's placed the 24 affected tranches on review for possible
downgrade in June 2009 either because of performance (TDA CAM 9
and 10) or because of the downgrade of Caja de Ahorros del
Mediterraneo ("CAM"; TDA CAM 5, 6, 7 and 8). The rating actions
are mainly due to worse-than-expected collateral performance and
take into account an increased loss expectation in the six
portfolios backing the notes. The review also took into
consideration the increased commingling exposure to CAM following
the downgrade, however this risk is limited by the new introduced
cash sweeps which are now performed every two days (weekly for TDA
CAM 10) from the collection accounts to the reinvestment accounts.
Previously this sweeps were performed monthly.
Moody's previously downgraded notes issued by TDA CAM 6, 7, 8 9
and 10 in December 2008. However, the collateral performance in
these transactions has deteriorated further since the last rating
review, resulting in drawings on the reserve funds. So far, none
of these transactions has fully drawn on the reserve fund and no
principal deficiencies have been recorded. Moody's has observed a
rapid increase in written-off loans, mirroring the overall
deterioration in the pools' performance.
Moody's believes that the weak performance (especially in TDA CAM
10) has mainly been driven by the high loan-to-value (LTV) ratios
of the securitized mortgage loans and the exposure to non-Spanish
borrowers, who have been affected by difficult economic conditions
such as increasing unemployment and declining house prices --
especially in coastal regions. The rating agency also understands
that all of the transactions include a share of loans originated
via broker, although exact numbers were not available.
Moody's has reassessed its lifetime loss expectations for the
affected transactions to account for the collateral performance to
date as well as its expectations for these transactions in the
context of the current macroeconomic environment in Spain. As
part of its analysis, Moody's has also assessed loan-by-loan
information for the outstanding portfolios to determine the credit
support consistent with target rating levels and the volatility of
the distribution of future losses. The loss expectation and the
MILAN Aaa credit enhancement (MILAN Aaa CE) are the two key
parameters used by Moody's to calibrate its loss distribution
curve, which is one of the core inputs in the cash flow model it
uses to rate RMBS transactions.
TDA CAM 5 closed in October 2005 and the current pool factor is
62%. Delinquencies (90+ as of current pool balance (CB)) stand at
3.1% and cumulative defaulted loans (defined as 12 months in
arrears for all TDA CAM transactions and measured as of original
pool balance (OB)) have reached 1.4%, which means its performance
is worse than what was originally assumed. The deteriorating
performance has also led to a reserve fund drawing, which
currently stands at 86% of its target value. On the basis of the
deterioration in credit trends, Moody's has updated the portfolio
expected loss assumption to 1.75% from 0.45% and revised its MILAN
Aaa CE assumptions to 7.5% from 4.9%. Currently, the available
credit enhancement in terms of available subordination and reserve
fund (CE) for the Class A notes is below the updated MILAN Aaa CE
and stands at 6%. However, Class A notes benefits from the
additional support of future recoveries from currently defaulted
assets and interest deferral triggers.
TDA CAM 6 closed in February 2006 and the current pool factor is
64%. Its delinquencies (90+/CB: 5.9%) and cumulative defaults
(3.3% as of OB) are some of the worst within the Spanish 2006 RMBS
vintage. The reserve fund is currently at only 21% of its target
value. Based on this further deterioration, Moody's has updated
the portfolio expected loss assumption to 3.3% from 1.7%, and
revised its MILAN Aaa CE assumptions to 11% from 8%. The
available CE for the Class A notes is 6.4%. Moody's confirmed the
rating of the Class A1 notes and downgraded the Class A2 and A3
notes. The Class A1 notes are amortizing in priority to the Class
A2 notes and both are planned amortization classes with pre-
defined amortization schedules. The Class A3 notes (companion
class) are being paid with the remaining available funds either
pari-passu with Class A1 notes or, after A1 is fully repaid, pari-
passu with Class A2 notes. In its cash flow analysis, Moody's has
taken into consideration the faster repayment of Class A1, which
led to the confirmation of its Aaa rating.
TDA CAM 7 closed in September 2006 and the current pool factor is
71%. Like TDA CAM 6, its performance is amongst the weakest
across the Spanish 2006 RMBS vintage (90+/CB: 5.6%, cumulative
defaults/OB: 3.1% and reserve fund at 31% of its target value).
This led Moody's to update its portfolio expected loss assumption
to 3.5% from 1.8% and revise its MILAN Aaa CE assumption to 11.5%
from 8.5%. The available CE for the Class A notes is 8.2%. The
Class A1 notes currently amortize in priority to the Class A2 and
A3 notes. All Class A notes will revert to pro-rata payment when
the cumulative defaults exceed 4% of OB. Moody's expects this
trigger to be breached within the next quarters. However, there
is a possibility that Class A1 is not fully redeemed at the next
IPD on 26 February 2010 and the pro-rata trigger will be breached.
Therefore Class A1 notes remain on review for possible downgrade.
TDA CAM 8 closed in January 2007 and the current pool factor is
74%. It is performing better in terms of delinquencies and
defaults than TDA CAM 6 and 7 (90+/CB: 4.1%, cumulative
defaults/OB: 2.2%). One possible reason for its better
performance could be the lower weighted-average current LTV (62%
compared to 67% for TDA CAM 6 or for TDA CAM 7). However,
compared to its peers in the Spanish 2007 RMBS vintage, its
performance is below average and the reserve fund is at only 21%
of its target level. This led Moody's to revise its portfolio
expected loss assumption to 2.63% from 1.6% and to revise its
MILAN Aaa CE assumption to 9% from 7%. The available CE for the
Class A notes is 5.3%.
TDA CAM 9 closed in June 2007 (pool factor: 76%) and its
performance in terms of delinquencies and defaults is amongst the
weakest in the Spanish RMBS sector (90+/CB: 6.0%, cumulative
defaults/OB: 3.3% and reserve fund at 27% of its target value).
Moody's has updated the portfolio expected loss assumption to 3.7%
from 1.9% and revised its MILAN Aaa CE assumptions to 12.5% from
9%. The available CE for the class A notes is 7.1%. Class A
notes will revert to pro-rata payment when the cumulative defaults
exceed 4% of OB. Moody's expects this trigger to be breached
within the next quarters, hence all Class A notes have been
downgraded to the same rating level.
TDA CAM 10 closed in December 2007 (pool factor: 78%) and is
currently performing worse than Moody's revised expectations as of
the latest rating review in terms of late-stage arrears and
defaults (90+ /CB: 9%, cumulative defaults/OB: 4.3%). Based on
this worsening, Moody's has adjusted its portfolio expected loss
assumption to 6.3% from 2.75% and revised its MILAN Aaa CE
assumption to 20% from 14%. The available CE for the Class A
notes is 8.7%. Since the last IPD in September 2009, the Class A
pro-rata amortization trigger has been breached. From the next
IPD, the remaining three Classes of A notes will amortize pro-
rata. The amortization of the senior, mezzanine and junior notes
is expected to remain sequential for the remaining life of the
deals following the breach of this trigger.
None of the affected transactions have yet hit their interest
deferral triggers. The interest deferral triggers for TDA CAM 5
and 6 are defined as principal deficiencies exceeding 70% of the
initial amount of Class B notes. For TDA CAM 7 to 10, the
interest deferral triggers are defined as the cumulative amount of
loans more than 12 months in arrears exceeding a certain level of
the original portfolio balance. This level is defined at 10%
(Class B) for TDA CAM 7; 6.5% (Class B) and 4.5% (Class C) for TDA
CAM 8; 9.5% (Class B) and 5.1% (Class C) for TDA CAM 9 and at 10%
(Class B) and 6.75% (Class C) for TDA CAM 10.
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
risks have not been addressed, but may have a significant effect
on yield to investors.
List Of Detailed Rating Actions
Issuer: TDA CAM 5, FTA
-- Class A, confirmed at Aaa; previously on 29 June 2009, Aaa
placed under review for possible downgrade
-- Class B, downgraded to Baa3; previously on 29 June 2009, A2
placed under review for possible downgrade
Issuer: TDA CAM 6, FTA
-- Class A1, confirmed at Aaa; previously on 29 June 2009, Aaa
placed under review for possible downgrade
-- Class A2, downgraded to Aa2; previously on 29 June 2009, Aaa
placed under review for possible downgrade
-- Class A3, downgraded to Aa2; previously on 29 June 2009, Aaa
placed under review for possible downgrade
-- Class B, downgraded to B3, previously on 29 June 2009, Baa2
placed under review for possible downgrade
Issuer: TDA CAM 7, FTA
-- Class A1, Aaa remains on review for possible downgrade,
previously on 29 June 2009, Aaa placed under review for
possible downgrade
-- Class A2, downgraded to Aa2, previously on 29 June 2009, Aaa
placed under review for possible downgrade
-- Class A3, downgraded to Aa2, previously on 29 June 2009, Aaa
placed under review for possible downgrade
-- Class B, downgraded to B3, previously on 29 June 2009, Baa1
placed under review for possible downgrade
Issuer: TDA CAM 8, FTA
-- Class A, downgraded to Aa1, previously on 29 June 2009, Aaa
placed under review for possible downgrade
-- Class B, downgraded to Ba3, previously on 29 June 2009, A3
placed under review for possible downgrade
-- Class C, downgraded to Caa2, previously on 29 June 2009, Ba1
placed under review for possible downgrade
-- Class D, Downgraded to C, previously on 29 June 2009, Ca
placed under review for possible downgrade
Issuer: TDA CAM 9, FTA
-- Class A1, downgraded to Aa3, previously on 5 June 2009, Aaa
placed under review for possible downgrade
-- Class A2, downgraded to Aa3, previously on 5 June 2009, Aa1
placed under review for possible downgrade
-- Class A3, downgraded to Aa3, previously on 5 June 2009, Aa1
placed under review for possible downgrade
-- Class B, downgraded to Ba3, previously on 5 June 2009, A3
placed under review for possible downgrade
-- Class C, downgraded to Ca, previously on 5 June 2009, Ba2
placed under review for possible downgrade
-- Class D, downgraded to C, previously on 5 June 2009, Ca
placed under review for possible downgrade
Issuer: TDA CAM 10, FTA
-- Class A2, downgraded to A3, previously on 5 June 2009, Aa1
placed under review for possible downgrade
-- Class A3, downgraded to A3, previously on 5 June 2009, Aa1
placed under review for possible downgrade
-- Class A4, downgraded to A3, previously on 5 June 2009, Aa1
placed under review for possible downgrade
-- Class B, downgraded to B3, previously on 5 June 2009, Baa2
placed under review for possible downgrade
-- Class C, downgraded to C, previously on 5 June 2009, B3
placed under review for possible downgrade
===========
S W E D E N
===========
GENERAL MOTORS: To Review Saab Bids; May Wind Down Brand
--------------------------------------------------------
General Motors Co. said Tuesday last week its Board of Directors
has received expressions of interest in Saab since the conclusion
of negotiations with Koenigsegg Group AB. The Board will evaluate
potential bids between now and the end of December.
"At that time, we will determine whether a suitable arrangement
for Saab exists. If not, we will begin an orderly wind down of
the global Saab business at that time," GM said in a statement.
"Due to non-disclosure agreements, we will not confirm or comment
on any potential transactions or other matters unless, and until,
we determine that disclosure is appropriate," GM said.
John Reed at The Financial Times reports GM said it would sell or
wind down Saab in February as part of a restructuring plan
mandated by the U.S. government, which became its majority owner
July, under which it is scaling back its sprawling operations to
focus on four core brands.
Katie Merx, Jeff Green and David Welch at Bloomberg News report
two people familiar with the talks said this week parts of Saab
may be sold to Beijing Automotive Industry Holding Co. According
to Bloomberg, the people, who asked not to be identified because
the talks are private, said sale of assets, including production
machinery, is among GM's options.
"It's very difficult to see a future for Saab," Bloomberg quoted
Stefan Bratzel, director of the Center of Automotive Research at
the University of Applied Sciences in Bergisch Gladbach, Germany,
as saying. Beijing Auto "is one of the potential candidates
because Chinese manufacturers are looking for a foothold in
Europe."
As reported by the Troubled Company Reporter-Europe, Bloomberg
News said GM may shut Saab after Koenigsegg dropped its bid
November 24. Bloomberg disclosed GM could also decide to keep
Saab.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries. In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.
GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.
As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009. This compares with a reported net loss of US$3.3 billion
in the year-ago quarter. As of March 31, 2009, GM had
US$82.2 billion in total assets and US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
===========
T U R K E Y
===========
ANADOLU EFES: Fitch Raises Foreign Currency IDR to 'BB+'
--------------------------------------------------------
Fitch Ratings has upgraded the Long-term foreign currency Issuer
Default Ratings of the four Turkish corporates listed below.
The upgrades reflect the upgrade of Turkey's Country Ceiling to
'BBB-' from 'BB'.
The corporate rating actions are:
Anadolu Efes Biracilik ve Malt Sanayii A.S.
-- Long-term foreign currency IDR: upgraded to 'BB+' from 'BB';
Outlook Negative
-- Long-term local currency IDR: affirmed at 'BB+'; Outlook
Negative
Coca-Cola Icecek
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable. The foreign currency IDR is constrained by
Turkey's Country Ceiling
-- Long-term local currency IDR: affirmed at 'BBB'; Outlook
Negative
Turkcell Iletisim Hizmetleri A.S.
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
Stable
Turkiye Petrol Rafinerileri A.S
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
Stable
Following the sovereign rating action, Fitch is currently
reviewing the mapping for its Turkish National Scale rating and
expects to announce the results of a possible recalibration in the
coming days.
COCA-COLA: Fitch Raises Foreign Currency IDR From 'BB'
------------------------------------------------------
Fitch Ratings has upgraded the Long-term foreign currency Issuer
Default Ratings of the four Turkish corporates listed below.
The upgrades reflect the upgrade of Turkey's Country Ceiling to
'BBB-' from 'BB'.
The corporate rating actions are:
Anadolu Efes Biracilik ve Malt Sanayii A.S.
-- Long-term foreign currency IDR: upgraded to 'BB+' from 'BB';
Outlook Negative
-- Long-term local currency IDR: affirmed at 'BB+'; Outlook
Negative
Coca-Cola Icecek
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable. The foreign currency IDR is constrained by
Turkey's Country Ceiling
-- Long-term local currency IDR: affirmed at 'BBB'; Outlook
Negative
Turkcell Iletisim Hizmetleri A.S.
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
Stable
Turkiye Petrol Rafinerileri A.S
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
Stable
Following the sovereign rating action, Fitch is currently
reviewing the mapping for its Turkish National Scale rating and
expects to announce the results of a possible recalibration in the
coming days.
TURKCELL ILETISIM: Fitch Raises Foreign Currency IDR From 'BB'
--------------------------------------------------------------
Fitch Ratings has upgraded the Long-term foreign currency Issuer
Default Ratings of the four Turkish corporates listed below.
The upgrades reflect the upgrade of Turkey's Country Ceiling to
'BBB-' from 'BB'.
The corporate rating actions are:
Anadolu Efes Biracilik ve Malt Sanayii A.S.
-- Long-term foreign currency IDR: upgraded to 'BB+' from 'BB';
Outlook Negative
-- Long-term local currency IDR: affirmed at 'BB+'; Outlook
Negative
Coca-Cola Icecek
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable. The foreign currency IDR is constrained by
Turkey's Country Ceiling
-- Long-term local currency IDR: affirmed at 'BBB'; Outlook
Negative
Turkcell Iletisim Hizmetleri A.S.
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
Stable
Turkiye Petrol Rafinerileri A.S
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
Stable
Following the sovereign rating action, Fitch is currently
reviewing the mapping for its Turkish National Scale rating and
expects to announce the results of a possible recalibration in the
coming days.
TURKIYE PETROL: Fitch Raises Foreign Currency IDR From BB
---------------------------------------------------------
Fitch Ratings has upgraded the Long-term foreign currency Issuer
Default Ratings of the four Turkish corporates listed below.
The upgrades reflect the upgrade of Turkey's Country Ceiling to
'BBB-' from 'BB'.
The corporate rating actions are:
Anadolu Efes Biracilik ve Malt Sanayii A.S.
-- Long-term foreign currency IDR: upgraded to 'BB+' from 'BB';
Outlook Negative
-- Long-term local currency IDR: affirmed at 'BB+'; Outlook
Negative
Coca-Cola Icecek
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable. The foreign currency IDR is constrained by
Turkey's Country Ceiling
-- Long-term local currency IDR: affirmed at 'BBB'; Outlook
Negative
Turkcell Iletisim Hizmetleri A.S.
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
Stable
Turkiye Petrol Rafinerileri A.S
-- Long-term foreign currency IDR: upgraded to 'BBB-' from 'BB';
Outlook Stable
-- Long-term local currency IDR: affirmed at 'BBB-'; Outlook
Stable
Following the sovereign rating action, Fitch is currently
reviewing the mapping for its Turkish National Scale rating and
expects to announce the results of a possible recalibration in the
coming days.
* ISTANBUL: Fitch Upgrades Long-Term Currency Rating to 'BB+'
-------------------------------------------------------------
Fitch Ratings has upgraded the Metropolitan Municipality of
Istanbul's and Toplu Konut Idaresi Baskanligi's ratings following
the agency's sovereign upgrade earlier.
The Republic of Turkey's Long-term foreign currency and local
currency Issuer Default ratings was upgraded to 'BB+' from 'BB-'
and 'BB' respectively, with Stable Outlooks.
The rating actions are:
Metropolitan Municipality of Istanbul:
-- Long-term foreign currency rating: upgraded to 'BB+' from
'BB-'; off RWP; assigned Stable Outlook
-- Long-term local currency rating: upgraded to 'BB+' from 'BB';
off RWP; assigned Stable Outlook
-- Short-term foreign currency rating: affirmed at 'B'
-- National Long-term Rating: affirmed at 'AA+(tur)' Stable
Outlook
Toplu Konut Idaresi Baskanligi (TOKI):
-- Long-term foreign currency rating: upgraded to 'BB+' from
'BB-'; off RWP; assigned Stable Outlook
-- Long-term local currency rating: upgraded to 'BB+' from 'BB';
off RWP; assigned Stable Outlook
-- National Long-term Rating: affirmed at 'AA+(tur)' Stable
Outlook
Istanbul, with more than 12.5 million inhabitants, plays a key
role in Turkey's economy, as it is the country's main financial
and commercial centre. In 2008, Istanbul's gross national product
accounted for close to 21% of the national total and about 43% of
national tax collection.
The metropolitan municipality's responsibilities are focused on
investment, primarily in infrastructure, and the provision of
municipal services such as public transport and water. Its main
source of revenue is taxes collected by the central government and
shared among the metropolitan municipalities.
TOKI, the Housing Development Administration of Turkey, was
established in 1984 as a public sector entity under Law 2985. In
2004 it was affiliated directly to the Prime Minister. TOKI's
role is to implement the national government's housing policy by
providing low-cost housing and loan facilities for the purchase of
social housing.
* REPUBLIC OF TURKEY: Fitch Upgrades Long-Term IDR to 'BB+'
-----------------------------------------------------------
Fitch Ratings has upgraded the Republic of Turkey's Long-term
foreign currency Issuer Default Rating to 'BB+' from 'BB-'. At
the same time, it has upgraded the Long-term local currency IDR to
'BB+' from 'BB' and its Country Ceiling to 'BBB-' from 'BB'. The
agency has removed all these ratings from Rating Watch Positive
and assigned Stable Outlooks to the Long-term IDRs. It has also
affirmed Turkey's Short-term foreign currency IDR at 'B'.
"The upgrade reflects Turkey's relative resilience to the severe
stress test of the global financial crisis and some easing in
prior acute constraints related to inflation, external finances
and political risk," says Edward Parker, Head of Emerging Europe
in Fitch's Sovereigns team.
Turkey's relative resilience to the global financial crisis
reveals that credit fundamentals and debt tolerance are stronger
than previously thought. Although the global shock caused a deep
recession in Turkey, it has not triggered a balance of payments or
financial crisis. In contrast to previous shocks, Turkey has been
able to implement counter-cyclical fiscal and monetary policies
without sparking an exchange rate crisis, and interest rates have
fallen to single digits for the first time in its modern history.
The government has been able to step up borrowing in the domestic
debt market at record low yields as well as issue US$3.75bn of
eurobonds this year. It has not needed an emergency IMF bailout
nor to support the banking sector, and there has been no
significant pick-up in dollarisation or capital flight.
Although Fitch forecasts GDP to contract 6% in 2009, the agency
expects growth of 4% in 2010. Moreover, the recession has enabled
the country to attain a better macroeconomic balance. Turkey's
history of relatively high and volatile inflation has been a
source of macroeconomic instability and a rating weakness. But
inflation has fallen to a modern low of 5.1%, from an average of
10.4% in 2008 and the floating exchange rate and inflation-
targeting regime has performed well during the crisis. The
exchange rate has adjusted to a more competitive level and Fitch
forecasts the current account deficit to narrow to 2.1% of GDP in
2009, from 5.7% in 2008.
Turkey's resilience also reflects its strong banking sector, which
is moderate in size, well capitalized and has a low loan/deposit
ratio of 80%. Debt tolerance and sovereign ratings are also
supported by high GDP per capita (which is above the 'BBB' range
median), high levels of human and physical capital, a favorable
business climate and governance, deep local capital markets and a
good modern debt service record.
However, the public finances have deteriorated. Fitch forecasts
the central government budget deficit (on IMF definitions) to
widen to 7.6% of GDP in 2009 and 5.6% in 2010, from 3% in 2008;
and (EU defined) general government debt to increase to a peak of
48% of GDP at end-2010, from 39.5% at end-2008, compared with the
10-year 'BB' range median of 41%. Fitch estimates this will
entail a fiscal financing requirement of around 19% of GDP in
2010, partly reflecting the relatively short average maturity of
domestic debt. A similar amount has been readily financed so far
in 2009. Encouragingly, the government has mapped out and started
to implement a medium-term fiscal consolidation programme, which
should be consistent with returning the debt-to-GDP ratio to a
declining path.
Although external financing risks have eased this year, helped by
the narrowing in the CAD, reasonable private sector roll-over
rates and large unexplained capital inflows, Turkey faces a
sizeable gross external financing requirement (CAD plus medium-
and long-term amortization) which Fitch estimates at US$66bn in
2010 (plus US$48bn short-term), compared with foreign exchange
reserves of US$75.4bn. Turkey's net external debt ratios and debt
service ratios are somewhat higher than for rating peers.
Political risk also weighs on Turkey's sovereign ratings. But the
risk of severe political instability has declined since 2007-2008,
in Fitch's view.
=============
U K R A I N E
=============
OLIMP-TELECOM LLC: Court Starts Bankruptcy Supervision Procedure
----------------------------------------------------------------
The Economic Court of Kirovograd commenced bankruptcy supervision
procedure on LLC Olimp-Telecom (code EDRPOU 32992005).
The Insolvency Manager is:
N. Tkachenko
Office 250
Heroes of Stalingrad Str. 26
25031 Kirovograd
Ukraine
The Court is located at:
The Economic Court of Kirovograd
Lunacharsky Str. 29
25006 Kirovograd
Ukraine
The Debtor can be reached at:
LLC Olimp-Telecom
Zavodskaya Str. 4
Svedlovodsk
27507 Kirovograd
Ukraine
===========================
U N I T E D K I N G D O M
===========================
DE BEERS: Shareholders to Inject US$1 Bln Through Share Placing
---------------------------------------------------------------
William MacNamara at The Financial Times reports that the three
shareholders of De Beers agreed in principle to inject up to US$1
billion (GBP608 million) in the company through a share placing.
According to the FT, people close to De Beers said global mining
group Anglo American, the Oppenheimer family that founded Anglo,
and the government of Botswana -- De Beers' three owners -- could
inject sums of US$450 million, US$400 million, and US$150 million
in proportion to their shareholding.
De Beers needs to refinance US$1.5 billion in debt due in March
2010, the FT discloses.
Citing a person familiar with the matter, the FT says De Beers'
consortium of 20 lenders recently indicated refinancing terms that
were not favorable to the company. The shareholders will make no
decision until the banks have laid out their terms, the FT states.
The FT relates the net profits of De Beers fell 99% to US$3
million in the first half. The company's total net debt is US$4
billion, the FT notes.
De Beers Group -- http://www.debeersgroup.com/-- is a South
Africa-based diamond mining company engaged in producing, sorting
and valuing diamonds. As of December 31, 2006, the Company had 20
mines in production in Africa. Based in London, the Diamond
Trading Company is the rough diamond sales arm of the De Beers
Group. Its major mines include Cullinan, Finsch, Kimberley,
Koffiefontein, Namaqualand, The Oaks and Venetia.
EXPRO HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service assigned B2 corporate family and
probability of default ratings to Expro Holdings UK 3 Limited. It
also assigned a P(B1) rating to the senior secured US$1.35 billion
senior secured Notes due December 2016 to be issued by Expro
Finance Luxembourg S.C.A. The outlook on all ratings is stable.
The provisional rating on the Notes assumes that there will be no
material variations to the draft legal documentation reviewed by
Moody's.
The B2 CFR reflects Expro's strong competitive position as a
provider of services and products that assist in the surveillance
and control of oil and gas wells. The company has particular
strengths in the offshore deepwater segment that is expected to
provide an increasing share of global oil and gas production.
Expro's services will assist in meeting the greater demand for oil
and gas at the same time as a steady decline of currently
producing fields.
The CFR also incorporates the material weight that Moody's has
given to Expro's high level of indebtedeness combined with the
limited prospect of near-term deleveraging. Moody's anticipates
that Expro will generate only limited free cash flow, in large
part due to its high interest burden. Furthermore, given the
accretion of a portion of the mezzanine interest, Expro's net debt
and leverage will only begin to fall as Ebitda starts to increase.
This depends to some extent on the pace of global economic
recovery, and Moody's expects that net leverage will not fall
below 6x until at least fiscal year ending March 2012.
The Notes will be issued to refinance senior bank debt at Expro,
part of about US$2.1 billion borrowed in 2008 to fund the
leveraged buy-out of Expro. The P(B1) rating of the Notes
reflects the application of Moody's loss given default
methodology, with the ratings uplift from the B2 CFR primarily due
to the subordination provided by mezzanine debt (US$777 million at
30 September 2009).
Expro's principal source of revenue is from two service
businesses. In the six months to 30 September 2009, Well Testing
& Commissioning provided 74% of revenue, and Wireline Intervention
provided 17%. Expro's Connectors and Measurements division also
supplies deepwater products, providing 9% of revenue. Market
fundamentals for Expro's services are solid given the increasing
global demand for oil and gas, combined with pressures on the
supply side that are causing increasing reliance on deepwater
production, as well as intervention.
Expro has strong brand recognition with a geographically diverse
and balanced global customer base of National and International
Oil Companies and Independents, and its revenues derive from all
major oil regions of the world, although with a relatively low
presence in the Middle East and Russia. About a quarter of
revenue comes from each of the Europe/FSU and South/West Africa
regions. The largest exposure to any single country is 15% of
revenue, and to a single customer is 7% of revenue. Expro's top
10 customers provide 39% of revenue. Although contract terms
including length vary according to the type of activity, an
incumbent service provider may be retained for up to the life of
the oil field for the more complex and value-added services.
Expro has a global leading position in WTC services, which help in
the analysis and control of both development and production wells,
mostly offshore. About two-thirds of Expro's total revenues come
from subsea activities. The deepwater segment of the oil services
market is generally more technically challenging and less
commoditized than onshore segments. Led by the IOCs -- whose
access to much of the world's more accessible reserves is
restricted -- the oil industry is expected to materially increase
deepwater capex over the next few years. New deepwater drilling
rigs are also contracted to be commissioned. About three quarters
of this capital expenditure is expected to be in Africa, Brazil
and the Gulf of Mexico, where Expro already has a strong presence.
Revenue growth for both C&M and a high proportion of WTC should be
driven by growth in subsea tree installations and increasing
complexity of systems (WTC's non subsea business will also benefit
from any growth in land wells and platform wells).
Concurrently, revenue growth for Wireline Intervention services
will be driven by accelerating decline rates in mature fields, and
an increasing focus on maximizing recoveries. Most oil-producing
countries are believed to be past peak production, and depletion
of oil in existing reservoirs is about 9% per annum.
Deepwater oil production grew at 15% CAGR between 2002 and 2007;
and deepwater oil is expected to fill the supply gap as production
declines from onshore and shallow waters, and before the economic
exploitation of unconventional sources. The IEA estimates that
between 160-300 billion barrels of recoverable oil are located in
deepwater, compared to global proven reserves of about 1.3
trillion barrels. Costs of deepwater extraction are typically
estimated in the US$40-60/bbl range. These factors have
contributed in recent years to a fundamental upward rebasing of
the oil price, reflecting the higher development costs of such
reserves. These trends also led to Expro enjoying steady revenue
growth this decade, complemented by the acquisition in 2006 of
PowerWell Services which helped broaden the company's geographical
reach.
However, the oilfield services industry is inherently cyclical,
with activity ultimately dependent on market expectations of oil
supply and demand and related oil price variations. Expro's
subsea activities are focused on longer-term projects for oil and
gas development, rather than production; and in Moody's opinion
revenues from this segment should be less influenced by shorter-
term market volatility. Nevertheless, as witnessed in 2008, long-
term projects may also be temporarily deferred depending on market
sentiment regarding longer-term oil prices.
Expro also has relatively low revenue diversity. Its main
competitors, including Schlumberger (A1, stable outlook) are
companies that have materially greater overall scale and financial
flexibility. Although Expro has a leading position and high level
of market share, particularly in the more complex areas of the
subsea segment, it remains vulnerable over the longer term to a
greater strategic push by its main competitors into this
increasingly important market.
Furthermore, notwithstanding the revenue stability arising from
the high subsea exposure, Expro retains some exposure to shorter-
term oil industry cyclicality as about one-third of its revenues
arise from oil and gas production (onshore and offshore). Expro
experienced 21% revenue reduction (14% at constant currency) for
the six months to September 2009, compared to the same period in
2008. About a quarter of Expro's revenue is from land-based
production; and the reduced revenue was driven mostly by lower
onshore production, particularly in North America, in turn
ultimately reflecting the weaker global economic climate and lower
oil price. Expro's order book, currently in excess of
US$1 billion, typically covers about two-thirds of These 12 months
revenue.
For deepwater activities Expro's services comprise less than 2% of
well development costs, and for these expensive and technically
challenging projects the price of Expro's services is a lesser
consideration. However some of Expro's land-based production
activities are more price-sensitive as they are less technically
differentiated and so relatively vulnerable to margin pressure at
times of lower oil prices. Hence gross margins in Wireline
Intervention, although healthy on average, are lower than those of
WTC and C&M.
About one-third of Expro's COGS (direct costs) is fixed, and
combined with indirect costs about half of total costs can be
considered as fixed over the short-term, with variable costs being
mostly personnel that is correlated to customer activity levels.
Expro has recently been reducing fixed costs in response to the
weaker oil price environment, and expects to make further
reductions over the medium term. The relatively low operating
leverage is shown by the fact that the 21% revenue reduction in
the six months to September 2009 resulted in just 7% Ebitda
reduction.
Together with the Notes, Expro's group debt will also include
US$777 million mezzanine debt and US$2.59 billion shareholder
loans, plus a US$100 million bank revolver (undrawn at closing).
Interest on the mezzanine debt is a combination of cash-pay and
PIK. In assessing the risk profile of the rated instruments,
Moody's has treated the shareholder loans, which have been
downstreamed from a holdco, as having equity-like characteristics.
This is because the terms include: (a) no cash interest; (b) no
financial or other covenants, acceleration or enforcement rights
or ability to declare a default; (c) no change of control
covenants; (d) no security encumbrances; (e) fully subordinated to
other debt instruments.
Moody's considers Expro to have high leverage and therefore
limited financial flexibility. The company expects to have
limited near-term capex, as annual maintenance capex is typically
about US$25 million and growth capex is generally incurred in line
with growth in the order book. The terms of the mezzanine debt
also restrict dividend payments while net consolidated leverage
exceeds 3x; and a material portion of the mezzanine interest is
rolled-up. Nevertheless Moody's expects that Expro's free cash
flow will be less than 3% of net debt until Ebitda increases,
potentially in fiscal year ending March 2012. Expro's net debt
and leverage will only begin to fall as Ebitda starts to increase,
as the PIK'ed mezzanine interest largely offsets net debt
reduction from free cash flow generation. Deleveraging will thus
be only limited for the foreseeable future, and dependent to some
extent on the level of global economic recovery; and Moody's
expects that net leverage will not fall below 6x until at least
fiscal year ending March 2012.
Expro has a solid liquidity profile. No debt repayments are due
until the Notes mature in July 2016, and the mezzanine facility
matures in July 2018. The company had US$163 million cash at 31
March 2009, and also has access to the undrawn US$100 million
revolver that matures in December 2015. Working capital
variations should be relatively low, and free cash flow generation
should be positive, although somewhat limited.
Expro has some interest rate exposure. The company entered into
interest rate swaps in 2008 to hedge the acquisition financing.
The Notes will be issued at a fixed rate, and the company will
enter into new swap arrangements to wind out near-term residual
exposures. The mezzanine debt will become fully floating from
June 2012, but Moody's anticipates that the company will
progressively manage this risk. Given Expro's global operations,
it also needs to manage FX risk; although Moody's notes that FX
risk is substantially mitigated by the fact that all debt is US$-
denominated, and the company receives the majority of its Ebitda
in US$. Covenant leverage calculations also effectively use
average FX rates for Ebitda and point-in-time rates for debt.
The Issuer is a Luxembourg special purpose company that will lend
the proceeds of the Notes to Expro and certain of its key
subsidiaries as Secured Loans (a new Facility D under Expro's
existing bank agreement), to prepay Expro's senior term debt. The
Notes will benefit indirectly -- via a pledge over the Secured
Loans -- from first ranking security over certain assets of Expro
and various group guarantors (with the companies guaranteeing the
Notes together comprising 85% of Expro's revenue and 89% of
assets). Via an intercreditor agreement the collateral used to
secure Facility D also secures the US$100 million revolver on a
super senior basis, the mezzanine facility on a second ranking
basis, and hedging and pension debt at the same ranking as
Facility D.
The indenture has restricted payment and debt incurrence covenants
based around a Fixed Charge Cover Ratio of 2.0x and (in the case
of restricted payments) a basket based on 50% of Consolidated Net
Income. It also permits certain further indebtedness including
US$80 million for obligations such as capital leases plus a
general US$100 million basket. The indenture also prohibits Expro
repurchasing mezzanine debt while consolidated leverage exceeds
3.25x. Expro's revolver has similar incurrence covenants to the
indenture; while the mezzanine facility has various maintenance
financial covenants that tighten progressively, plus a prohibition
on restricted payments until net consolidated leverage is below
3x.
In assigning the P(B1) rating of the Notes, Moody's has assumed
50% group LGD. Moody's notes that the majority of assets on
Expro's balance sheet at 31 March 2009 are US$2.57 billion
goodwill and US$1.32 billion intangibles relating mostly to
customer relationships and contracts, leading to negative book
equity of US$476 million (plus the shareholder loan of
US$2.44 billion). However, the 50% LGD assumption reflects the
mixed composition of the debt capital structure, with Notes,
mezzanine debt and bank revolver (which Moody's assumes would be
drawn should the company's credit profile deteriorate). No
specific assumption has been made regarding hedging liabilities.
The ratings uplift from the B2 CFR is mainly due to the
subordination provided by the mezzanine debt; which Moody's notes
will increase over time as PIK interest accrues.
The stable outlook reflects Moody's view that, over the next
couple of years, Expro should continue to benefit from its strong
competitive position, particularly in the deepwater segment. It
also incorporates Moody's expectation that there will be some,
although limited, deleveraging in this period. Positive ratings
pressure could develop if, inter alia, net adjusted debt/Ebitda
falls towards 5x. Negative ratings pressure could develop if,
inter alia, it becomes apparent that net adjusted debt/Ebitda will
be above 6x at the end of fiscal year ending March 2012; or if
free cash flow turns negative at any point. The ratings do not
incorporate any flexibility for the company to make debt-financed
acquisitions.
Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the transaction only. Upon a conclusive review
of the final documentation, Moody's will endeavour to assign a
definitive rating to the Notes. A definitive rating may differ
from a provisional rating.
Headquartered in the United Kingdom, Expro is a leading provider
of services and products to the upstream oil and gas industry.
About 24% of revenue is from onshore markets and about 76% from
offshore markets. In July 2008, the company was bought by a
private equity consortium led by Candover and GS Capital Partners
VI Fund, L.P. For the nine-month period ending March 2009, the
Expro group reported revenue of about US$934 million.
EXPRO HOLDINGS: S&P Assigns 'B' Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B' corporate credit rating to U.K.-based oil field services
company Expro Holdings U.K. 3 Ltd. The outlook is stable.
At the same time, S&P assigned:
* A '2' recovery rating and 'B+' issue rating to the proposed
$1,350 million senior secured notes, which will be issued by a
special purpose vehicle Expro Finance Luxembourg S.C.A. and
guaranteed by Expro Holdings U.K. 3 Ltd. S&P has also assigned
'2' recovery and 'B+' issue ratings to the underlying
$1.35 billion senior secured Term Loan D.
* A '1+' recovery rating and 'BB' issue rating to the super senior
$100 million revolving credit facility.
* A '5' recovery rating and 'B-' issue rating to the existing
$777 million mezzanine loan.
S&P's recovery ratings indicate its expectation of recovery in the
event of a payment default: '2' corresponds to substantial (70%-
90%) recovery; '1+' corresponds to full (100%) recovery; and '5'
corresponds to modest (10%-30%) recovery.
The rating on Expro primarily reflects the group's "highly
leveraged" financial risk profile mitigated by its "fair" business
risk profile.
"Key weaknesses include Expro's high debt -- including the
relative complexity of its leveraged buyout capital structure --
and expected limited deleveraging over the next two years," said
Standard & Poor's credit analyst Karl Nietvelt.
The ratings also factor in some uncertainty with respect to the
near-term market outlook for subsea services, taking into account
Expro's position as a late cyclical player.
Nonetheless, S&P recognize the strength of Expro's leading market
position providing critical well-testing and commissioning
services that support international and national oil majors as
they expand particularly into more complex and deeper offshore
locations. S&P also expects Expro's profitability to show a fair
degree of resilience, thanks to its low capital intensity, value-
added services and its focus on subsea growth markets (with low
exposure to U.S. land services).
"The stable outlook reflects S&P's expectation of Expro's EBITDA
being fairly resilient in the near term, in line with management
figures for the six months ended September 2009 and the company's
fairly stable order backlog of over $1 billion at end-October
2009," said Mr. Nietvelt.
However, the rating recognizes the limited near-term visibility
and factor in some leeway to counter further price pressures and
contract delays that Expro could experience as a late cycle player
and the possibility that debt reductions could be somewhat delayed
as a consequence.
S&P could raise the rating if the company's operating profits are
resilient during the current trough years, in combination with
deleveraging progress and increased visibility on anticipated
medium-term growth for subsea services. S&P could downgrade in
case of unexpected operating profit pressures, a less strong
competitive position than assumed, operational incidents, material
negative free cash flow, or covenant headroom under the mezzanine
facility becoming tight.
GRAHAM & HESLIP: In Administration; C&R Print Acquires Business
---------------------------------------------------------------
Adam Hooker at Print Week reports that Graham & Heslip has entered
into administration and been bought by new company C&R Print.
The report relates Brian Murphy and Michael Jennings, of BDO, were
appointed as administrators of the company on December 2.
"The joint administrators have subsequently been successful in
securing the sale of the business as a going concern, thus
preserving 81 jobs," the report quoted a statement from BDO as
saying. "In recent times, the company has been significantly
impacted by the general downturn in the economy and increasing
competitive pressures within the printing sector."
Graham & Heslip is a Northern Ireland-based printer.
LEEK FINANCE: Moody's Cuts Ratings on Two Classes of Notes to Caa3
------------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of 6 classes
of notes and has confirmed the ratings of 5 classes of notes
issued by Leek Finance No. 19 PLC.
All the affected tranches listed at the end of this press release
had been placed on review for possible downgrade on 26 June 2009
due to worse-than-expected performance as detailed in a press
release dated 26 June 2009 when Moody's placed on review 13 UK
Non-Conforming RMBS transactions and commented on 14 other UK NC
RMBS transactions. The rating action concludes the review and
takes into account increased loss expectations for the mortgage
portfolio. Moody's notes that the weak performance of this
transaction is the main driver for the rating action.
Transaction Overview
Leek 19 closed in April 2007 and the current pool factor is
approximately 75%. The assets supporting the notes are non-
conforming mortgage loans secured by residential properties
located in England, Wales and Scotland with approximately 37% of
the outstanding portfolio represented by non-owner occupied
properties. The original weighted average LTV at closing was
approximately 82.28% while the current weighted average indexed
LTV has increased to 86.58%. As a result of the house price
depreciation after closing, approximately 19.40% of the
outstanding portfolio is currently characterized by an indexed LTV
higher than 100%. The cumulative losses realized since closing
amount to 1.74% of the original portfolio balance, with an average
loss severity of 35.06% reported for the quarter ended in
September 2009. This represents more than a 1% increase in
realized losses (as a percentage of original balance) over the
last 4 quarters. The reserve fund has not been drawn and is fully
funded at its target level corresponding to 2.88% of the current
balance of the notes. Moody's expects a reserve fund drawn in the
next interest payment date, considering the decrease in excess
spread over the past few quarters and the increase in arrears,
Revised Performance Expectations
Moody's has assessed updated loan-by-loan information of the
outstanding portfolios to determine the increase in credit support
needed and the volatility of future losses. As a consequence,
Moody's has revised its Milan Aaa CE for this transaction to 25%
from 23% as at the last review in August 2008. The current
available credit enhancement, excluding the 0.56% of over-
collateralization is 28.91% and 17.78% for the Class A and Class M
notes respectively.
Considering the current amount of realized losses and completing a
roll-rate and severity analysis for the non-defaulted portion of
the portfolio, Moody's has also increased its total loss
expectations to 6.0% of the original portfolio balance from 3.09%
as at the last review in August 2008.
The loss expectation and the Milan Aaa CE are the two key
parameters used by Moody's to calibrate the loss distribution
curve, which is one of the inputs into Moody's RMBS cash-flow
model. Moody's has also factored into its analysis the negative
sector outlook for UK NC RMBS. The sector outlook reflects these
key macro-economic indicators: GDP to contract by 4.1% in 2009,
followed by modest growth of 0.8% in 2010, unemployment to
increase up to 9% by 2010 from 7.8%, house prices to decrease by
around 25% from their peak in 2007 to a trough in 2010 and further
increases in personal insolvencies. For more detailed information
please refer to Moody's Economy.com.
Servicing and Cash Management
Britannia Building Society, the parent company of Platform Homes
Loans Limited, the servicing and cash management company, merged
with the Co-Operative Bank PLC (A2/P-1) on 1st August 2009.
Moody's notes that all the obligations, including the servicing
and cash management guarantee provided at close by Britannia, have
been transferred to the merged entity. Moody's has taken the
merger into consideration as part of its analysis of the servicing
and operational risks associated with this transaction.
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 transactions. Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.
Moody's will continue to monitor closely the above transactions.
Moody's initially analyzed and monitors these transactions using
the rating methodology for EMEA RMBS as described in the Rating
Methodology reports "Moody's Approach to Rating UK RMBS" published
in April 2005, "Moody's Updated Methodology for Rating UK RMBS"
published in November 2007 and "Revising Default/Loss Assumptions
Over the Life of an ABS/RMBS Transaction" published in December
2008, as well as the Special Report "Interest Rate Risks in UK
RMBS -- Moody's approach" published in October 2007.
List of affected Notes:
-- GBP98.6 million A2a notes, Confirmed at Aaa; previously Aaa
Placed Under Review for Possible Downgrade on 26 June 2009
-- US$559.1 million A2b notes, Confirmed at Aaa; previously Aaa
Placed Under Review for Possible Downgrade on 26 June 2009
-- EUR111.5 million A2c notes, Confirmed at Aaa; previously Aaa
Placed Under Review for Possible Downgrade on 26 June 2009
-- GBP23.0 million Ma notes, Confirmed at Aa2; previously Aa2
Placed Under Review for Possible Downgrade on 26 June 2009
-- EUR68.0 million Mc notes, Confirmed at Aa2; previously Aa2
Placed Under Review for Possible Downgrade on 26 June 2009
-- GBP12.0 million Ba notes, Downgraded to Baa1; previously A2
Placed Under Review for Possible Downgrade on 26 June 2009
-- EUR51.0 million Bc notes, Downgraded to Baa1; previously A2
Placed Under Review for Possible Downgrade on 26 June 2009
-- GBP6.0 million Ca notes, Downgraded to B1; previously Baa3
Placed Under Review for Possible Downgrade on 26 June 2009
-- EUR32.9 million Cc notes, Downgraded to B1; previously Baa3
Placed Under Review for Possible Downgrade on 26 June 2009
-- GBP13.0 million Da notes, Downgraded to Caa3; previously B2
Placed Under Review for Possible Downgrade on 26 June 2009
-- EUR6.7 million Dc notes, Downgraded to Caa3; previously B2
Placed Under Review for Possible Downgrade on 26 June 2009
YELL GROUP: Poor Sales as Users, Advertisers Go Online
------------------------------------------------------
Chiara Remondini at Bloomberg News reports that Seat Pagine Gialle
SpA, Yell Group Plc and PagesJaunes Groupe are struggling to boost
sales as users and advertisers ditch their printed directories for
online searches.
According to Bloomberg, while the companies have beefed up their
own Internet-based offerings, they still depend on phonebooks for
most of their revenue, and their online growth has yet to
compensate for the drop in print-based sales.
Bloomberg says printed directories account for more than two-
thirds of revenue for Seat and Yell and half for PagesJaunes.
Bloomberg relates Seat and Yell posted their first losses in five
years in the last full-year periods. Yell's U.K. print business
fell 20% in the six months through Sept. 30 while online sales
rose 8.7%, Bloomberg notes. Print revenue at Seat's Italian unit
dropped 14% in the first nine months, while Internet sales jumped
30%, Bloomberg discloses. In the first nine months, print sales
at PagesJaunes slid 5.4%, while online revenue rose 9.5%,
Bloomberg states.
As reported by the Troubled Company Reporter-Europe on Nov. 4,
2009, the Financial Times said that Yell reached agreement with
more than 300 creditors to restructure GBP3.8 billion of its debt.
About Yell Group
Headquartered in Reading, England, Yell Group plc --
http://www.yellgroup.com/-- is an international directories
business operating in the classified advertising market through
printed, online, and phone media in the U.K. and the US. Yell
also owns 100% of TPI (renamed "Yell Publicidad"), the largest
publisher of yellow and white pages in Spain, with operations in
certain countries in Latin America. Yell's revenue for the twelve
months ended March 31, 2008 was GBP2,219 million and its
Adjusted EBITDA was GBP738.9 million.
* * *
As reported in the Troubled Company Reporter-Europe on Nov. 25,
2009, Moody's Investors Service confirmed Yell's B2 Corporate
Family Rating and B3 Probability of Default Rating. The outlook
is stable. This action concludes the review for possible
downgrade initiated on 3 July 2009 following the company's
announcement regarding the commencement of capital restructuring
negotiations to comprehensively refinance the company's debt
capital structure, and the update on its trading. The B2 CFR
incorporates Moody's assumption under its LGD methodology of an
above-average family recovery, in conjunction with the company's
current all first-lien bank debt capital structure.
* UK: Commercial Real State Debt In Default More Than Doubled
-------------------------------------------------------------
Daniel Thomas at The Financial Times reports that a survey by De
Montfort University has revealed that the value of UK commercial
real estate debt in default or in breach of key lending agreements
more than doubled to about GBP30 billion in the first six months
of the year, adding pressure on the banking sector.
The FT says banks have also extended or refinanced an extra GBP16
billion in the first-half of the year, rolling over maturing debt
that could not be paid back by cash-strapped borrowers or
restructuring loans when breaches were threatened owing to the
steep fall in values.
According to the FT, there was GBP18.6 billion reported in breach
of covenants and GBP11.8 billion in default reported in the first
six months of 2009, the equivalent of all the commercial property
in Portugal.
"The first half of 2009 has seen the UK commercial property
lending market begin to experience the impact of the global
financial crisis that started rumbling during 2007 and reached a
crescendo in the autumn of 2008," the FT quoted Bill Maxted,
author of the report, as saying:
The value of outstanding debt secured by UK commercial property
was reported at GBP224.1 billion at the end of the first-half,
down from the record GBP225.5 billion recorded at the end of 2008,
underlining just how indebted the UK sector is to the banks, the
FT notes.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week November 30 to December 4, 2009
------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRIA
-------
INVESTKREDIT AG 7.000 3/6/2021 EUR 74.15
KOMMUNALKREDIT 0.500 3/15/2019 CAD 64.62
OESTER VOLKSBK 4.170 7/29/2015 EUR 66.38
OESTER VOLKSBK 5.450 8/2/2019 EUR 74.50
OESTER VOLKSBK 4.810 7/29/2025 EUR 67.75
OESTER VOLKSBK 5.270 2/8/2027 EUR 93.35
RAIFF ZENTRALBK 4.500 9/28/2035 EUR 90.04
SAPPI PAPIER HOL 7.500 6/15/2032 USD 48.25
SAPPI PAPIER HOL 7.500 6/15/2032 USD 48.25
BELGIUM
-------
FORTIS BANK 8.750 12/7/2010 EUR 22.47
BULGARIA
--------
PETROL AD-SOFIA 8.375 10/26/2011 EUR 55.13
CZECH REPUBLIC
--------------
CZECH REPUBLIC 2.750 1/16/2036 JPY 65.84
FINLAND
-------
MUNI FINANCE PLC 1.000 11/21/2016 NZD 69.58
MUNI FINANCE PLC 1.000 10/30/2017 AUD 64.10
MUNI FINANCE PLC 1.000 2/27/2018 AUD 63.02
MUNI FINANCE PLC 0.500 9/24/2020 CAD 60.90
MUNI FINANCE PLC 0.500 3/17/2025 CAD 46.67
MUNI FINANCE PLC 0.250 6/28/2040 CAD 21.28
FRANCE
------
AIR FRANCE-KLM 4.970 4/1/2015 EUR 14.52
ALCATEL SA 4.750 1/1/2011 EUR 16.45
ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.39
ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 4.30
ATARI SA 4.000 4/1/2020 EUR 0.68
ATOS ORIGIN SA 2.500 1/1/2016 EUR 47.10
CALYON 6.000 6/18/2047 EUR 42.98
CAP GEMINI SA 2.500 1/1/2010 EUR 51.88
CAP GEMINI SOGET 1.000 1/1/2012 EUR 43.07
CAP GEMINI SOGET 3.500 1/1/2014 EUR 42.86
CLUB MEDITERRANE 4.375 11/1/2010 EUR 48.42
EURAZEO 6.250 6/10/2014 EUR 54.66
FAURECIA 4.500 1/1/2015 EUR 17.71
GIE PSA TRESORER 6.000 9/19/2033 EUR 80.29
GROUPE VIAL 2.500 1/1/2014 EUR 25.11
MAUREL & PROM 3.500 1/1/2010 EUR 22.75
MAUREL ET PROM 7.125 7/31/2014 EUR 17.59
NEXANS SA 4.000 1/1/2016 EUR 59.72
PEUGEOT SA 4.450 1/1/2016 EUR 31.01
PUBLICIS GROUPE 3.125 7/30/2014 EUR 33.89
PUBLICIS GROUPE 1.000 1/18/2018 EUR 44.97
RHODIA SA 0.500 1/1/2014 EUR 40.96
SCOR SA 4.125 1/1/2010 EUR 2.07
SOC AIR FRANCE 2.750 4/1/2020 EUR 20.53
SOITEC 6.250 9/9/2014 EUR 10.23
TEM 4.250 1/1/2015 EUR 55.37
THEOLIA 2.000 1/1/2014 EUR 11.76
VALEO 2.375 1/1/2011 EUR 46.09
ZLOMREX INT FIN 8.500 2/1/2014 EUR 33.50
ZLOMREX INT FIN 8.500 2/1/2014 EUR 33.50
GERMANY
-------
DEUTSCHE BK LOND 1.000 3/31/2027 USD 48.42
ESCADA AG 7.500 4/1/2012 EUR 17.48
GOTHAER ALLG VER 5.527 9/29/2026 EUR 75.45
HSH NORDBANK AG 4.375 2/14/2017 EUR 62.92
HVB REAL ESTATE 6.480 3/21/2022 EUR 103.21
HYPO REAL ESTATE 4.690 12/14/2026 EUR 74.02
IKB DEUT INDUSTR 4.500 7/9/2013 EUR 74.87
KFW 5.000 10/17/2035 EUR 73.74
L-BANK FOERDERBK 0.500 5/10/2027 CAD 44.48
LB BADEN-WUERTT 5.250 10/20/2015 EUR 34.90
LB BADEN-WUERTT 2.500 1/30/2034 EUR 58.88
RENTENBANK 1.000 3/29/2017 NZD 68.60
SOLON AG SOLAR 1.375 12/6/2012 EUR 40.30
TUI AG 2.750 9/1/2012 EUR 73.23
TUI AG 5.500 11/17/2014 EUR 61.72
VAC FINANZ 9.250 4/15/2016 EUR 38.00
VAC FINANZ 9.250 4/15/2016 EUR 38.00
GREECE
------
YIOULA GLASSWORK 9.000 12/1/2015 EUR 56.38
YIOULA GLASSWORK 9.000 12/1/2015 EUR 55.96
HUNGARY
-------
REP OF HUNGARY 2.110 10/26/2017 JPY 71.93
ICELAND
-------
KAUPTHING BANK 6.125 10/4/2016 USD 24.13
IRELAND
-------
ALLIED IRISH BKS 5.250 3/10/2025 GBP 65.85
ALLIED IRISH BKS 5.625 11/29/2030 GBP 61.19
BANK OF IRELAND 4.875 1/22/2018 GBP 72.47
DEPFA ACS BANK 2.375 2/15/2019 CHF 98.28
DEPFA ACS BANK 0.500 3/3/2025 CAD 30.83
DEPFA ACS BANK 5.250 3/31/2025 CAD 73.55
DEPFA ACS BANK 3.250 7/31/2031 CHF 98.97
DEPFA ACS BANK 4.900 8/24/2035 CAD 62.32
IRISH LIFE & PER 4.625 5/9/2017 EUR 69.50
IRISH NATIONWIDE 13.000 8/12/2016 GBP 64.70
IRISH NATIONWIDE 5.500 1/10/2018 GBP 37.40
UT2 FUNDING PLC 5.321 6/30/2016 EUR 63.05
ITALY
-----
ALITALIA SPA 7.500 7/22/2010 EUR 24.13
ARCELORMITTAL 7.250 4/1/2014 EUR 31.34
COMUNE DI MILANO 4.019 6/29/2035 EUR 74.75
ROMULUS FINANCE 5.441 2/20/2023 GBP 70.66
UNICREDITO ITALI 5.668 2/15/2035 EUR 73.88
LUXEMBOURG
----------
BREEZE 4.524 4/19/2027 EUR 82.87
CRC BREEZE 5.290 5/8/2026 EUR 74.49
HELLAS III 8.500 10/15/2013 EUR 74.71
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 61.70
LIGHTHOUSE INTL 8.000 4/30/2014 EUR 60.23
SAFILO CAP INTL 9.625 5/15/2013 EUR 70.88
SAFILO CAP INTL 9.625 5/15/2013 EUR 71.60
TALANX FINANZ 4.500 6/30/2025 EUR 77.07
NETHERLANDS
-----------
ABN AMRO BANK NV 6.000 3/16/2035 EUR 65.81
AI FINANCE B.V. 10.875 7/15/2012 USD 53.13
AIR BERLIN FINAN 1.500 4/11/2027 EUR 65.94
ALB FINANCE BV 9.000 11/22/2010 USD 29.49
ALB FINANCE BV 8.750 4/20/2011 USD 27.98
ALB FINANCE BV 9.250 9/25/2013 USD 27.94
ARPENI PR INVEST 8.750 5/3/2013 USD 50.00
ARPENI PR INVEST 8.750 5/3/2013 USD 50.00
BK NED GEMEENTEN 0.500 6/27/2018 CAD 70.54
BK NED GEMEENTEN 0.500 2/24/2025 CAD 48.60
BLT FINANCE BV 7.500 5/15/2014 USD 57.25
BLT FINANCE BV 7.500 5/15/2014 USD 57.25
BSP FINANCE BV 10.750 11/1/2011 USD 72.00
ELEC DE CAR FIN 8.500 4/10/2018 USD 63.63
EM.TV FINANCE BV 5.250 5/8/2013 EUR 4.20
FINANCE & CREDIT 10.375 1/25/2010 USD 67.99
IVG FINANCE BV 1.750 3/29/2017 EUR 67.01
KAZKOMMERTS FIN 8.625 7/27/2016 USD 77.54
KAZKOMMERTS INTL 8.000 11/3/2015 USD 84.13
KAZKOMMERTS INTL 7.500 11/29/2016 USD 80.98
KAZKOMMERTS INTL 6.875 2/13/2017 EUR 75.00
KBC IFIMA NV 6.004 2/7/2025 USD 67.08
NATL INVESTER BK 25.983 5/7/2029 EUR 36.37
NED WATERSCHAPBK 0.500 3/11/2025 CAD 47.40
NIB CAPITAL BANK 4.790 12/17/2043 EUR 74.47
NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 66.88
NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 66.25
NXP BV/NXP FUNDI 8.625 10/15/2015 EUR 66.72
NXP BV/NXP FUNDI 9.500 10/15/2015 USD 74.75
NXP BV/NXP FUNDI 9.500 10/15/2015 USD 74.75
NXP BV/NXP FUNDI 9.500 10/15/2015 USD 75.75
Q-CELLS INTERNAT 1.375 2/28/2012 EUR 67.33
Q-CELLS INTERNAT 5.750 5/26/2014 EUR 70.75
RABOBANK 4.168 2/25/2020 EUR 88.10
SNS BANK 5.000 3/15/2019 EUR 69.62
TEMIR CAPITAL 9.000 11/24/2011 USD 29.00
TEMIR CAPITAL 9.500 5/21/2014 USD 17.63
TEMIR CAPITAL 9.500 5/21/2014 USD 18.70
TJIWI KIMIA FIN 13.250 8/1/2001 USD 0.00
TURANALEM FIN BV 7.875 6/2/2010 USD 20.00
TURANALEM FIN BV 6.250 9/27/2011 EUR 19.49
TURANALEM FIN BV 7.750 4/25/2013 USD 19.87
TURANALEM FIN BV 8.000 3/24/2014 USD 21.15
TURANALEM FIN BV 8.500 2/10/2015 USD 20.05
TURANALEM FIN BV 8.500 2/10/2015 USD 19.95
TURANALEM FIN BV 8.250 1/22/2037 USD 19.96
TURANALEM FIN BV 8.250 1/22/2037 USD 20.08
NORWAY
------
EKSPORTFINANS 0.500 5/9/2030 CAD 38.27
NORSKE SKOGIND 7.000 6/26/2017 EUR 64.83
POLAND
------
POLAND GOVT BOND 3.300 6/16/2038 JPY 73.20
POLAND-REGD-RSTA 2.810 11/16/2037 JPY 65.89
REP OF POLAND 2.620 11/13/2026 JPY 73.12
REP OF POLAND 2.648 3/29/2034 JPY 65.53
REP OF POLAND 3.220 8/4/2034 JPY 74.49
REP OF POLAND 4.250 7/20/2055 EUR 69.41
ROMANIA
-------
BUCHAREST 4.125 6/22/2015 EUR 88.64
RUSSIA
------
KAZAN ORGSINTEZ 9.250 10/30/2011 USD 79.93
SPAIN
-----
GENERAL DE ALQUI 2.750 8/20/2012 EUR 56.44
MINICENTRALES 4.810 11/29/2034 EUR 62.74
SWEDEN
------
SWEDISH EXP CRED 0.500 12/17/2027 USD 51.66
SWITZERLAND
-----------
CYTOS BIOTECH 2.875 2/20/2012 CHF 50.65
UBS AG JERSEY 9.000 3/9/2010 USD 53.95
UBS AG JERSEY 9.000 5/18/2010 USD 54.20
UBS AG JERSEY 9.000 6/11/2010 USD 53.19
UBS AG JERSEY 9.000 7/2/2010 USD 53.20
UBS AG JERSEY 9.000 7/19/2010 USD 53.60
UBS AG JERSEY 9.350 7/27/2010 USD 54.40
UBS AG JERSEY 9.000 8/13/2010 USD 58.25
UBS AG JERSEY 9.500 8/31/2010 USD 60.95
UBS AG JERSEY 10.000 10/25/2010 USD 61.95
UBS AG JERSEY 13.900 1/31/2011 USD 37.13
UBS AG JERSEY 14.640 1/31/2011 USD 38.94
UBS AG JERSEY 16.170 1/31/2011 USD 13.87
UBS AG JERSEY 10.000 2/11/2011 USD 61.10
UBS AG JERSEY 15.250 2/11/2011 USD 12.47
UBS AG JERSEY 11.330 3/18/2011 USD 18.40
UBS AG JERSEY 16.160 3/31/2011 USD 44.30
UBS AG JERSEY 10.820 4/21/2011 USD 22.17
UBS AG JERSEY 11.030 4/21/2011 USD 21.72
UBS AG JERSEY 13.000 6/16/2011 USD 47.34
UBS AG JERSEY 10.280 8/19/2011 USD 33.02
UBS AG JERSEY 10.360 8/19/2011 USD 51.70
UBS AG JERSEY 11.150 8/31/2011 USD 36.14
UBS AG JERSEY 9.350 9/21/2011 USD 66.10
UBS AG JERSEY 3.220 7/31/2012 EUR 66.07
UBS AG LONDON 1.500 6/19/2018 JPY 63.52
UNITED KINGDOM
--------------
ALPHA CREDIT GRP 2.940 3/4/2035 JPY 69.59
AMDOCS LIMITED 0.500 3/15/2024 USD 70.00
BANK OF SCOTLAND 2.928 6/10/2020 USD 71.53
BANK OF SCOTLAND 2.340 12/28/2026 JPY 74.09
BANK OF SCOTLAND 2.408 2/9/2027 JPY 74.53
BANK OF SCOTLAND 2.359 3/27/2029 JPY 70.39
BARCLAYS BK PLC 11.650 5/20/2010 USD 40.25
BARCLAYS BK PLC 7.610 6/30/2011 USD 54.32
BARCLAYS BK PLC 10.600 7/21/2011 USD 40.34
BRADFORD&BIN BLD 5.500 1/15/2018 GBP 7.00
BRADFORD&BIN BLD 5.750 12/12/2022 GBP 8.07
BRADFORD&BIN PLC 6.625 6/16/2023 GBP 6.98
BRADFORD&BIN BLD 2.875 10/16/2031 CHF 93.01
BRADFORD&BIN BLD 4.910 2/1/2047 EUR 73.69
BRIT INSURANCE 6.625 12/9/2030 GBP 70.42
BROADGATE FINANC 5.098 4/5/2033 GBP 73.65
CATTLES PLC 7.875 1/17/2014 GBP 13.38
CITY OF KIEV 8.000 11/6/2015 USD 64.52
CITY OF KYIV 8.250 11/26/2012 USD 71.54
CO-OPERATIVE BNK 5.875 3/28/2033 GBP 73.23
EFG HELLAS PLC 2.760 5/11/2035 JPY 65.40
ENTERPRISE INNS 6.500 12/6/2018 GBP 83.25
ENTERPRISE INNS 6.875 5/9/2025 GBP 78.06
ENTERPRISE INNS 6.375 9/26/2031 GBP 74.03
F&C ASSET MNGMT 6.750 12/20/2026 GBP 65.75
GLOBAL CROSS FIN 10.750 12/15/2014 USD 99.75
GRAINGER PLC 3.625 5/17/2014 GBP 48.18
GREENE KING FIN 5.702 12/15/2034 GBP 71.88
HBOS PLC 4.500 3/18/2030 EUR 70.47
HBOS PLC 6.000 11/1/2033 USD 73.84
HBOS PLC 6.000 11/1/2033 USD 73.84
INEOS GRP HLDG 7.875 2/15/2016 EUR 62.33
INEOS GRP HLDG 7.875 2/15/2016 EUR 62.13
INEOS GRP HLDG 8.500 2/15/2016 USD 61.60
INEOS VINYLS FIN 9.125 12/1/2011 EUR 75.00
INEOS VINYLS FIN 9.125 12/1/2011 EUR 75.00
KENSINGTON GROUP 9.000 12/21/2015 GBP 62.25
LBG CAPITAL NO.1 6.439 5/23/2020 EUR 73.25
LBG CAPITAL NO.2 6.385 5/12/2020 EUR 73.50
LOUIS NO1 PLC 8.500 12/1/2014 EUR 72.13
LOUIS NO1 PLC 10.000 12/1/2016 EUR 62.50
MARSTONS ISSUER 5.641 7/15/2035 GBP 71.86
NATL GRID GAS 1.754 10/17/2036 GBP 49.03
NATL GRID GAS 1.771 3/30/2037 GBP 47.46
NBG FINANCE PLC 2.755 6/28/2035 JPY 73.96
NORTHERN ROCK 5.625 1/13/2015 GBP 35.33
NORTHERN ROCK 5.750 2/28/2017 GBP 35.56
NORTHERN ROCK 10.375 3/25/2018 GBP 48.00
NORTHERN ROCK 6.375 12/2/2019 GBP 74.50
NORTHERN ROCK 9.375 10/17/2021 GBP 40.80
OJSC BANK NADRA 9.250 6/28/2010 USD 20.00
PARAGON GROUP 7.000 4/20/2017 GBP 74.50
PRIVATBANK 8.000 2/6/2012 USD 76.16
PRIVATBANK 8.750 2/9/2016 USD 67.25
PUNCH TAVERNS 7.567 4/15/2026 GBP 73.52
PUNCH TAVERNS 6.468 4/15/2033 GBP 68.16
ROYAL BK SCOTLND 4.700 7/3/2018 USD 70.25
ROYAL BK SCOTLND 9.500 4/4/2025 USD 65.29
ROYAL BK SCOTLND 7.540 6/29/2030 EUR 58.66
SPIRIT ISSUER 5.472 12/28/2028 GBP 70.50
TXU EASTERN FNDG 6.450 5/15/2005 USD 0.01
UKRAINE GOVT 4.950 10/13/2015 EUR 69.56
UKRAINE GOVT 4.950 10/13/2015 EUR 68.94
UKRAINE GOVT 6.580 11/21/2016 USD 73.56
UKRAINE GOVT 6.580 11/21/2016 USD 73.11
UKRAINE GOVT 6.750 11/14/2017 USD 72.80
UKRAINE GOVT 6.750 11/14/2017 USD 73.17
UNIQUE PUB FIN 7.395 3/28/2024 GBP 73.23
UNIQUE PUB FIN 6.464 3/30/2032 GBP 59.86
VAB BANK 10.125 6/14/2010 USD 67.47
WESSEX WATER FIN 1.369 7/31/2057 GBP 20.73
*********
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 and Peter A. Chapman, Editors.
Copyright 2009. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *