/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/101115.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, November 15, 2010, Vol. 11, No. 225 Headlines B E L G I U M BRINK'S CO: Belgian Unit to File for Bankruptcy G E R M A N Y HEIDELBERGCEMENT AG: Moody's Raises Corp. Family Rating to 'Ba2' HONSEL AG: Sells Fonderie Lorraine Unit Under Restructuring Plan SAARGUMMI GMBH: Files for Insolvency WESTLB AG: Struggles to Find Buyer; Liquidation Risk Rises * Germany: To Present EU Insolvency Plan This Week H U N G A R Y CERBONA: To File for Bankruptcy Protection I R E L A N D PALMER SQUARE: Moody's Downgrades Ratings on Notes to 'Ca (sf)' PULS CDO: S&P Junks Rating on Class C-2 Notes From 'B- (sf)' TITAN EUROPE 2006-2: S&P Cuts Rating on Class H Notes to 'D (sf)' TITAN EUROPE 2006-5: S&P Cuts Rating on Class E Notes to 'D (sf)' I T A L Y TIRRENIA DI NAVIGAZIONE: Attracts 16 Potential Bidders R O M A N I A HIDROMECANICA: High Debt & Losses Prompt Insolvency Filing R U S S I A RAIFFEISENBANK ZAO: Moody's Assigns Rating on Bond Issuance S P A I N BANCO BILBAO: S&P Takes Various Rating Actions on Notes BBVA 6: Moody's Reviews 'Ca (sf)' Rating on C Certificate RACE POINT: Moody's Assigns 'Ba2' Rating to US$370 Mil. Loan U K R A I N E NADRA BANK: Liquidation Sought by IMF, Izvestia Says RODOVID BANK: Liquidation Sought by IMF, Izvestia Says STATE SAVINGS: Fitch Assigns 'B' Rating to Two Classes of Bonds U N I T E D K I N G D O M BAA PLC: Fitch Assigns 'BB+' Rating to GBP325 Million Notes BLACKPOOL PANTHERS: Rugby Football League Membership Cancelled CHAMOIS FURNISHINGS: Goes Into Administration; Cuts 57 Jobs CRUSADERS: Winding-Up Order Adjourned for a Week CRYSTAL UMBRELLA: Unit Enters Administration as Group Restructures EMI GROUP: CEO Roger Faxon Rules Out Break-Up to Pay Debts INVERESK PAPER COMPANY: Court Awards GBP4.25MM to Tullis Russell OVERFINCH BESPOKE: Goes Into Administration PWB HEALTH: Provisional Liquidator Appointed; Assets Up for Sale RMAC SECURITIES: S&P Cuts Ratings on Various Classes of Notes ROK PLC: Administration Affects Messingham School Project X X X X X X X X * BOND PRICING: For the Week November 8 to November 12, 2010 ********* ============= B E L G I U M ============= BRINK'S CO: Belgian Unit to File for Bankruptcy ----------------------------------------------- John Martens at Bloomberg News, citing Flemish public broadcaster VRT, reports that Brink's Co.'s Belgian unit that provides armored cars to transport cash plans to file for bankruptcy. According to Bloomberg's Vivek Shankar, Brink's said it has exited the cash handling market in Belgium. Bloomberg's Mr. Martens also reports BNP Paribas SA's Belgian banking unit said it's evaluating the potential bankruptcy of the Belgian unit of Brink's, which will have a "marginal" impact on supplies of cash to its ATMs in the country. The Brink's Company is a security and protection company headquartered in Richmond, Virginia, United States. ============= G E R M A N Y ============= HEIDELBERGCEMENT AG: Moody's Raises Corp. Family Rating to 'Ba2' ---------------------------------------------------------------- Moody's Investors Service has upgraded HeidelbergCement's Ba3 corporate family rating to Ba2, and the senior unsecured long term rating from B1 to Ba3. The rating action was prompted by the relatively positive performance that HC has shown in 2010 so far and the expectation that the overall environment in HC's markets will remain stable to slightly positive. This should enable HC to improve its profitability in 2011 and to generate positive free cash flows that can be applied to debt reduction. Both measures will help bringing HC's leverage ratios closer to a level that would be commensurate with a high Ba rating. Ratings Rationale "This rating action has also taken into account the commitment of HeidelbergCement's management to further reduce debt, which also includes the assumption that the dividend policy will remain moderate going forward." said Matthias Hellstern, Moody's lead analyst for HeidelbergCement. HC is predominantly active in markets that are slowly recovering from last year's crisis -- such as Germany, Canada or Sweden - , and has limited exposure to markets with continued weak economic environment, such as Italy or Spain. In addition markets in Russia and Poland are recovering strongly more than offsetting the continued weakness observed in Romania or Hungary. HC's markets in Africa and Asia are developing well supporting the expected slow improvement in HC's profitability and cash flow generation ability in 2011. With RCF/net debt of 12.3% and debt/EBITDA of 4.7x per last-twelve months September 2010 HC's leverage ratios are now weakly positioning HC in the Ba2 rating category, but the expectation of positive free cash flow in Q4 2010 and an improvement in overall profitability in 2011 will help HC to quickly improve in the current rating category and should lead over the next 12 -- 18 months to further positive rating pressure, hence the positive outlook. In the last 18 months HC has considerably improved its short-term liquidity situation and its leverage by issuing new equity, several sizeable long-term bonds and the refinancing of its bank loan arrangements. Therefore short term liquidity for HC is now good, but banking arrangements contain conditionality including a material adverse change clause and financial covenants that become more restrictive starting in 2011 and Moody's will closely monitor the compliance over time. The rating could be upgraded if in the medium term HC achieves a RCF/net debt ratio moving to the high teens and a debt/EBITDA ratio below 4.0x, which, according to Moody's forecasts should be achievable by the end of 2011. Based on the current expectation for further development there is a limited risk of a downgrade. However, negative rating pressure would occur, if the compliance with financial covenants -- and hence availability of liquidity -- would be at risk and if -- contrary to Moody's expectation - the leverage ratios would not improve further. HeidelbergCement AG is the world's third largest cement producer with strong market positions in mature Western European countries, such as Germany, Scandinavia, Benelux, and the UK, as well as in the emerging markets of Eastern Europe, Africa, Asia and Turkey. HeidelbergCement generated sales of EUR 11.6 billion on a last twelve months basis per September 2010. Upgrades: Issuer: Hanson Australia Funding Limited -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3 from B1 Issuer: Hanson Limited -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3 from B1 Issuer: HeidelbergCement AG -- Probability of Default Rating, Upgraded to Ba2 from Ba3 -- Corporate Family Rating, Upgraded to Ba2 from Ba3 -- Senior Unsecured Medium-Term Note Program, Upgraded to (P)Ba3 from (P)B1 Issuer: Heidelbergcement Finance B.V. -- Senior Unsecured Medium-Term Note Program, Upgraded to (P)Ba3 from (P)B1 -- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3 from B1 HONSEL AG: Sells Fonderie Lorraine Unit Under Restructuring Plan ---------------------------------------------------------------- Mike Gavin at Bloomberg News reports that Honsel AG has completed the first step in its restructuring, with an agreement reached to sell its French unit Fonderie Lorraine to ZF Friedrichshafen AG. According to Bloomberg, Honsel's insolvency administrator said Honsel is now in a "position to continue its operations in a sustainable and profitable manner." As reported by the Troubled Company Reporter-Europe on Oct. 29, 2010, Honsel, a 51% subsidiary of RHJ International, filed for insolvency in Germany after it failed to reach agreement with all stakeholders on a sustainable restructuring plan. As part of a restructuring in July 2009, RHJI invested EUR50 million into the Honsel Group in exchange for a 51% stake in the group, with the remaining 49% being held by Honsel's senior term lenders. Over the last year Honsel has incurred significant operating losses. Despite the equity support provided by RHJI in the midst of the economic downturn and considerable efforts by Honsel's management to address operating issues in manufacturing in conjunction with new product launches, Honsel's financial performance remained under pressure and resulted in a liquidity shortfall. The carrying value of the investment in Honsel as reflected in RHJI's non-consolidated accounts stands at EUR50 million. In addition EUR20 million super senior credit facilities and EUR15 million of leasing and factoring facilities are outstanding. Meschede, Germany-based Honsel AG manufactures cast aluminium, magnesium and titanium alloy parts for cars, railway carriages and aeroplanes. The company also manufactures rolled light metal products and distributes aluminium, magnesium and titanium metals. SAARGUMMI GMBH: Files for Insolvency ------------------------------------ SaarGummi GmbH has submitted an insolvency filing a week after daughter company SaarGummi Deutschland sought protection from creditors, Tom Lavell at Bloomberg News reports, citing administrator Schultze & Braun. According to Bloomberg, the law firm said the filing affects the holding company only and not its operating subsidiaries. SaarGummi GmbH is a German rubber-component maker. WESTLB AG: Struggles to Find Buyer; Liquidation Risk Rises ---------------------------------------------------------- Aaron Kirchfeld and Oliver Suess at Bloomberg News report that WestLB AG is struggling to find a buyer and it has to convince the European Union there are better options than just winding it down. According to Bloomberg, the viability of the Dusseldorf-based bank may be debated when officials from WestLB, German Finance Minister Wolfgang Schaeuble, and representatives of the European Commission meet in Brussels today, Nov. 15. Bloomberg relates Dirk Becker, an analyst at Kepler Capital Markets, said a shutdown of WestLB, which was kept alive by taxpayer money, including EUR3 billion (US$4.1 billion) from Germany's bank-rescue fund, would be manageable. "WestLB isn't relevant for a functioning German banking market," Mr. Becker said according to Bloomberg. "An orderly winding down could go smoothly." State Aid Probe As reported by the Troubled Company Reporter-Europe on Nov. 9, 2010, The Associated Press said European Union is extending its probe of state aid for WestLB because the bank received more money than it had foreseen. The Associated Press disclosed the European Commission, the EU's competition authority also said it had growing doubts about the state-controlled bank's future viability. The commission said Westdeutsche Landesbank received EUR6.95 billion in state aid when it transferred more than EUR77 billion in bad investments to a so-called bad bank, because the bad bank overestimated the real economic value of those investments, according to The Associated Press. That is EUR3.4 billion more than the commission had foreseen when it first opened a probe into the state aid almost a year ago, The Associated Press noted. Merger talks between WestLB and BayernLB, another Landesbank, collapsed, dashing the hopes of the German government that a tie- up would help keep WestLB afloat, The Associated Press disclosed. The Associated Press noted Competition Commissioner Joaquin Almunia said German authorities must now either announce further restructuring measures or demand that WestLB pay back the additional money it received. So far, the German authorities have failed to submit a revised restructuring plan, he said, and WestLB has not sold off businesses fast enough, according to The Associated Press. The commissioner also questioned whether WestLB can continue to function under its current business model without receiving more state aid, The Associated Press noted. About WestLB Headquartered in Duesseldorf, Germany, WestLB AG (DAX:WESTLB) -- http://www.westlb.com/-- provides financial advisory, lending, structured finance, project finance, capital markets and private equity products, asset management, transaction services and real estate finance to institutions. In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB AG's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC. WestLB's shareholders are the two savings banks associations in NRW (25.15% each), two regional associations (0.52% each), the state of NRW (17.47%) and NRW.BANK (31.18%), which is owned by NRW (64.7%) and two regional associations (35.3%). * * * As reported by the Troubled Company Reporter-Europe on May 6, 2010, Moody's Investors said WestLB AG's E+ bank financial strength rating (BFSR, which maps directly to a B2 baseline credit assessment, BCA), was affirmed and the outlook on this rating changed to stable from developing. Moody's affirmation of the E+ BFSR and the change of its outlook to stable reflects that, despite positive developments, the BFSR remains constrained by the bank's weak franchise, which includes several core segments that do not (or only insufficiently) contribute to group profits, thus resulting in the bank's continued dependence on volatile, wholesale-focused sources of income. Moody's does not rule out that the bank could be split up and unwound if efforts to divest the bank were to prove unsuccessful. * Germany: To Present EU Insolvency Plan This Week -------------------------------------------------- Bloomberg News, citing Financial Times Deutschland, reports that Germany will present its proposal for a European crisis mechanism this week rather than next month to allay investor concerns that have driven up bond yields. The plan, which will spell out to what extent bondholders would have to contribute to a sovereign bailout, could be presented at a meeting of European Union finance ministers this week rather than the EU summit in December, the newspaper said, according to Bloomberg. ============= H U N G A R Y ============= CERBONA: To File for Bankruptcy Protection ------------------------------------------ Cerbona's shareholders agreed at a general meeting on Wednesday to file for bankruptcy protection for the company, MTI-Econews reports, citing CEO Gabor Gosztonyi. According to MTI, Mr. Gosztonyi said Cerbona, which is struggling because of big changes in grain and flour prices, wants to restore normal operations and gain access to capital either through the involvement of a bank or, preferably, an outside investor. MTI relates Mr. Gosztonyi said shareholders at the meeting on Wednesday authorized the company's board to raise capital up to HUF3 billion through the issue of new shares over the next twelve months, if necessary. Cerbona's registered capital is currently HUF1.9 billion, while its bank loans stood at HUF4.5 billion, MTI discloses. Cerbona is a Hungarian food company. ============= I R E L A N D ============= PALMER SQUARE: Moody's Downgrades Ratings on Notes to 'Ca (sf)' --------------------------------------------------------------- Moody's Investors Service took these rating actions on the notes issued by Palmer Square 2 plc. -- US$1424M Class A1-M Floating Rate Notes due 2045 (currently US$1,093,362,026.50 outstanding), Downgraded to Ca (sf); previously on Apr 23, 2009 Confirmed at Caa2 (sf) -- US$356M Class A1-Q Floating Rate Notes due 2045, Downgraded to Ca (sf); previously on Apr 23, 2009 Confirmed at Caa2 (sf) Ratings Rationale Palmer Square 2 plc is a managed cash flow collateralized debt obligation backed predominantly by a portfolio of US RMBS assets and ABS CDOs. According to Moody's, the rating downgrade actions are the result of deterioration of the credit quality of the portfolio including new defaults and deterioration of overcollateralization ratios. The current aggregate principal balance of the portfolio, excluding defaulted assets, is US$727.8M. The amount of defaulted securities has increased from US$634 million in September 2009 to US$864 million in October 2010. During the same time, the Class A overcollateralization ratio decreased from 51.8% to 35.8%, and Class A1 event of default ratio decreased from 108% to 104% as reported in the Trustee Report dated 28 October 2010. There are currently US$5.18M Class X notes outstanding, rated Baa1(sf), which are sufficiently collateralized. The other classes of notes may incur losses upon the occurrence of an event of default. An event of default may occur due to the failure, on any measurement date, of the Class A1 event of default ratio to be equal to or greater than 101%. During the occurrence and continuance of an event of default, controlling creditors of the transaction are entitled to direct the Trustee to take particular actions with respect to the collateral and the notes, including liquidation of the portfolio assets. The current weighted average market value of 151 assets representing 83% of the Aggregate Principal Balance, provided by trustee, is 22.64%. Moody's performed a sensitivity analysis by assuming the 30 remaining assets for which market values were not provided were sold at par. In this best case scenario, the Class A1-M and Class A1-Q could be covered by 37%, while the Class A2 and below would suffer a 100% loss under the post-enforcement waterfall in case of liquidation of the portfolio. Moody's Investors Service did not receive or take into account a third-party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past 6 months. PULS CDO: S&P Junks Rating on Class C-2 Notes From 'B- (sf)' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its credit ratings on PULS CDO 2006-1 PLC's class A1, A2B, B, C1, C2, and R notes. At the same time, S&P affirmed the ratings on the other rated notes. The rating actions follow deterioration in the credit quality of the portfolio underlying the transaction. Since S&P's last rating action in August 2010. S&P's review focused primarily on the single-obligor concentration risk, as the underlying portfolio lacks granularity. S&P's analysis of the risk posed by further defaults among the largest obligors indicated that the remaining credit enhancement was no longer commensurate with the assigned ratings for all but the class A2A notes. S&P has therefore lowered the ratings on the class A2B, B, C1, and C2 notes. Furthermore, S&P has downgraded class A1 and R notes by a different number of notches, as its view is that these tranches have very similar default risk to the class A2B notes. The current number of performing obligors stands at 29. This lack of granularity in the underlying portfolio leads to a high sensitivity of the ratings to any further large obligor defaults: In S&P's view, the class A1, A2B, and R notes are likely to lose their investment-grade ratings in case of one further default. PULS 2006 is a cash collateralized debt obligation that the Capital Securities Group administers. Senior unsecured and subordinated bonds, issued by German and Swiss small- and midsize enterprises, back the transaction. Ratings List PULS CDO 2006-1 PLC EUR266.95 Million Senior And Subordinated Deferrable Fixed- And Floating-Rate Notes Series 2006-1 Ratings Lowered Rating ------ Class To From ----- -- ---- A-1 BBB- (sf) A (sf) A-2B BBB- (sf) BBB (sf) B B+ (sf) BB- (sf) C-1 B- (sf) B (sf) C-2 CCC- (sf) B- (sf) R BBB- (sf) A (sf) Ratings Affirmed Class Rating ----- ------ A-2A A (sf) D CCC- (sf) E-1 CCC- (sf) E-2 CCC- (sf) Q CCC- (sf) TITAN EUROPE 2006-2: S&P Cuts Rating on Class H Notes to 'D (sf)' ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit ratings on Titan Europe 2006-2 PLC's class F, G, and H notes. These rating actions follow a second consecutive shortfall in interest payments on the class H notes and S&P's expectation of an ultimate principal loss on this class. S&P also believe the risk of the issuer failing to meet its interest obligations on the class F and G notes on a timely basis has increased, and S&P has therefore lowered its ratings on these classes. The ratings on the class A to E and J notes are unaffected. The note interest shortfall results from a nonpayment of interest under the Velvet loan and the special servicing fees and expenses charged in the context of this loan. The Velvet loan is secured by a portfolio of multifamily housing assets. The loan has been in default since July 2009, when the borrower first failed to pay amounts due to the tax authorities. Although the special servicer has confirmed to us that they have not received interest payments at all on the July and the October 2010 interest payment dates, S&P expects the properties to generate some rental income due to the granularity of the leases. If the borrower makes a partial payment, the special servicing fees and expenses would be paid senior to loan interest through the intercreditor waterfall. This would result in an increased liquidity drawing, but bond interest could be paid in full on all classes of notes. Although there was excess cash at the note level, S&P understand that the issuer was unable to apply this excess cash (the difference between loan interest received and note interest plus senior expenses payable) to the shortfall. The excess cash was paid to the class X noteholders instead. Titan Europe 2006-2 was initially backed by seven loans, all secured on German multifamily housing assets--approximately 28,000 units in total. Three loans have prepaid and the outstanding note issuance amount has now reduced to EUR669.4 million, from EUR862.1 million at closing. All remaining loans are scheduled to mature in 2011, while the legal final maturity date of the transaction is in 2016. Ratings List Titan Europe 2006-2 PLC EUR862.169 Million Commercial Mortgage-Backed Floating-Rate Notes Ratings Lowered Rating ------ Class To From ----- -- ---- F CCC (sf) CCC+ (sf) G CCC- (sf) CCC (sf) H D (sf) CCC- (sf) Ratings Unaffected Class Rating ----- ------ A A (sf) B BBB (sf) C BBB- (sf) D BB (sf) E B- (sf) J D (sf) TITAN EUROPE 2006-5: S&P Cuts Rating on Class E Notes to 'D (sf)' ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit ratings on Titan Europe 2006-5's class D and E notes to 'CCC- (sf)' and 'D (sf)', respectively. This rating action follows a second consecutive shortfall in interest payments on the class C, D, and E notes and reflects S&P's expectation that the class E notes will suffer an ultimate principal loss. S&P believes the interest shortfalls on the class C notes are likely to be repaid shortly, as the issuer had already repaid most of the initial interest shortfall on the October 2010 note interest payment date. S&P has therefore not taken a rating action on this class. The interest shortfall on the class D notes comprised only 0.85% of the class balance, an amount S&P views as minor. There is a risk that the shortfall may recur and S&P has lowered its rating on this class to 'CCC- (sf)' from 'B- (sf)' accordingly. If the interest shortfall on this class persists, S&P would likely lower the rating to 'D (sf)'. The interest shortfall on the class E notes was also a minor amount, in S&P's view, at 0.97% of the class balance. S&P has lowered its rating on the class E notes to 'D (sf)' because S&P believes the current interest shortfalls are highly likely to be recurring and that the likelihood of a full repayment of the shortfalls has reduced. S&P also anticipate an ultimate principal loss on this class as some loans in the pool may not be repaid in full. The note interest shortfalls result from a nonpayment of interest under the Quartier 206 loan and the special servicing fees and expenses charged in the context of this loan. S&P has previously taken rating action following a similar incident. The Quartier 206 loan is secured on a retail and office property in Berlin. The loan defaulted in April 2010 when the borrower failed to service the debt. This, in turn, followed the failure to pay of a major tenant, which was related to the loan sponsor. The property has also been revalued, which triggered an appraisal reduction; the loan was transferred to special servicing. S&P were informed that on the October 2010 IPD, no funds were received from the borrower, although S&P understand that tenants unrelated to the loan sponsor continue to pay rent. The entire interest shortfall from the loan was drawn from the liquidity facility, but the amounts charged by the special servicer reduced the funds available for the issuer to make interest payments on the notes. Although there was excess cash at the note level, S&P understand that the issuer was unable to apply this excess cash (the difference between loan interest received and note interest plus senior expenses payable) to the shortfall. The excess cash was paid to the class X noteholders instead. S&P has not been provided with any indication as to when the servicer expects the borrower to resume at least a partial interest payment and have therefore taken the rating action. Titan Europe 2006-5 is a commercial mortgage-backed securities transaction backed by seven loans. The loans, in turn, are secured on a mixture of retail, office, industrial, and multifamily housing properties in Germany. All loans are scheduled to be repaid between October 2015 and July 2016. The legal final maturity date of the transaction falls in 2019. Ratings List Titan Europe 2006-5 PLC EUR660.969 Million Commercial Mortgage-Backed Floating-Rate Notes Ratings Lowered Rating ------ Class To From ----- -- ---- D CCC- (sf) B- (sf) E D (sf) CCC- (sf) Ratings Unaffected Class Rating ----- ------ A1 AAA (sf) A2 AAA (sf) A3 A+ (sf) B BBB+ (sf) C BB- (sf) F D (sf) X AAA (sf) ========= I T A L Y ========= TIRRENIA DI NAVIGAZIONE: Attracts 16 Potential Bidders ------------------------------------------------------ Andrew Davis at Bloomberg News, citing newspaper Il Messaggero, reports that sixteen companies moved to the second round of the bidding process for Tirrenia di Navigazione SpA. Giancarlo D'Andrea, the bankruptcy commissioner for the company, sent letters to 16 of the 21 groups that showed initial interest, saying they had qualified to begin due diligence on Tirrenia and prepare an offer, the newspaper said, according to Bloomberg. As reported by the Troubled Company Reporter-Europe on Aug. 16, 2010, Bloomberg News said that a Rome judge on Aug. 12 declared Tirrenia insolvent, the first step toward placing the company under state administration. Bloomberg disclosed Italy failed this month to sell Tirrenia and on Aug. 5 approved "emergency financial provisions" to help guarantee ferry services. The sale was pulled after the government did not reach a final agreement with bidder Mediterranea Holding, according to Bloomberg. Italy-based Tirrenia di Navigazione SpA, founded in 1936, runs passenger and cargo ships linking the mainland with islands Sardinia, Sicily and Corsica as well as Albania. ============= R O M A N I A ============= HIDROMECANICA: High Debt & Losses Prompt Insolvency Filing ---------------------------------------------------------- SeeNews, citing local news daily Ziarul Financiar, reports Hidromecanica has decided to file for insolvency due to high debt and losses and slowdown in operations. According to SeeNews, the daily said Hidromecanica posted a 46% drop in its nine-month turnover to RON4.5 million (US$1.4 million/EUR1 million) and losses of RON1.0 million. =========== R U S S I A =========== RAIFFEISENBANK ZAO: Moody's Assigns Rating on Bond Issuance ----------------------------------------------------------- Moody's assigns a Baa3 long-term global local currency debt rating to ZAO Raiffeisenbank's (RBRU) senior unsecured RUB10 billion bond issuance maturing in 2013. The rating carries a positive outlook. Any subsequent senior debt issuance by the bank will be rated at the same rating level subject to there being no material change in the bank's overall credit rating. Ratings Rationale The assigned rating is in line with the bank's global local currency deposit rating, which is in turn based on (i) the bank's D+ bank financial strength rating (mapping to a baseline credit assessment of Ba1); and (ii) Moody's assessment of a very high probability of support in the event of need from the bank's ultimate controlling shareholder, Raiffeisen Bank International AG (BCA of Baa3, positive outlook), resulting in a one-notch uplift from RBRU's BCA of Ba1. The BFSR is supported by the bank's well-established franchise with strong positions in a full range of commercial banking businesses, sound market strategy and comparatively healthy pre- provision earnings. The rating is constrained by Russia's fragile banking operating environment, as well as RBRU's concentrated loan portfolio together with higher credit risk of the largest exposures related to real estate and significant reliance on parent's funding. RBRU's global local-currency deposit ratings of Baa3/Prime-3 incorporate a very high probability of parental support in the event of need. Headquartered in Moscow, Russia, ZAO Raiffeisenbank reported total IFRS assets of RUB511 billion (EUR13.4 billion) at June 30, 2010 and net income of RUB3.75 billion (EUR98 million) for H1 2010. ========= S P A I N ========= BANCO BILBAO: S&P Takes Various Rating Actions on Notes ------------------------------------------------------- Standard & Poor's Ratings Services took various rating actions on all classes of notes in six Banco Bilbao Vizcaya Argentaria, S.A. transactions. The six transactions are securitizations of loans granted to Spanish small and midsize enterprises. Specifically, S&P has: * Lowered its ratings on BBVA-4 PYME Fondo de Titulizacion de Activos' class B notes and BBVA-5 FTPYME Fondo de Titulizacion de Activos' class A1, A2, and A3(G) notes; * Lowered and removed from CreditWatch negative its ratings from BBVA 4's class C notes, BBVA 5's class B notes, BBVA-6 FTPYME Fondo de Titulizacion de Activos' class A1, A2(G), B, and C notes, BBVA-7 FTGENCAT Fondo de Titulizacion de Activos' class A1, A2(G), B, and C notes, BBVA Empresas 1, Fondo de Titulizacion de Activos' class B and C notes, and BBVA-8 FTPYME Fondo de Titulizacion de Activos' class B and C notes; and * Affirmed its ratings on BBVA Empresas 1's class A1, A2, and A3 notes, BBVA 4's class A2 notes, BBVA 5's class C notes, and BBVA 8's class A1 and A2(G) notes. The rating actions are based on S&P's review of each transaction, including a credit and cash flow analysis. S&P assessed the risk related to a variety of critical features embedded in the current backing pools, i.e., industry concentration, top borrowers' weight over the pool totals, bullet loans, and loans granted to developers. The results of S&P's cash flow projections and concentration tests led us to lower its ratings on some classes of notes. These table reports the summary information for each transaction as per the last investor reports available. 90 to Cumulative Credit Top 10 Pool 360 default support borrowers factor days(1) (2) (3) (4) ------ ------- ---------- ------- --------- BBVA 1 35.37 0.85 1.47 4.28 23.34 BBVA 4 12.17 3.57 1.09 5.01 15.71 BBVA 5 23.76 1.70 2.75 (1.10) 7.38 BBVA 6 32.60 2.78 3.80 (4.38) 6.26 BBVA 7 39.30 1.39 4.23 (0.64) 19.57 BBVA 8 51.90 1.71 2.83 4.32 8.83 (1) Delinquent loans between 90 and 360 days as a percentage of the current pool balance. (2) Cumulative defaults as a percentage of the original pool balance. (3) Cash reserve or principal deficiency as a percentage of the outstanding note balance. (4) Top ten borrowers as a percentage of the current pool balance. BBVA 4 shows a very low pool factor and a significant concentration of the pool in few large borrowers. Consequently, the junior tranches are exposed to the risk of defaults in these few large positions in conjunction with the cash reserve providing less support. Therefore, S&P lowered its ratings on the junior notes in BBVA 4. Of the Spanish asset-backed securities SME deals that S&P rate, BBVA 5, BBVA 6, and BBVA 7 are the first ones to accumulate principal deficiency. In S&P's view, these deals face the risk that the junior tranches could default due to the partial amortization of the note balance at maturity. At the same time, higher levels of cumulative defaults and a trend of increasing amounts of defaulted assets are, in S&P's opinion, increasing the probability of a breach in the interest-deferral triggers for the junior classes. S&P's overall credit assessments show that credit support for the senior classes is no longer commensurate with a 'AAA (sf)' rating. For these reasons, S&P has lowered its ratings on these transactions. BBVA Empresas 1 and BBVA 8 report slightly better performance and higher levels of credit support provided by the cash reserve. Those elements led us to affirm S&P's ratings on the senior classes. At the same time, there are other concerning factors (i.e., concentration risk), which led us to lower S&P's ratings on the junior tranches. A portfolio of loans BBVA has granted to SMEs across Spain back the notes in these six transactions (as an exception, BBVA-7's pool is fully concentrated in Catalunya). Ratings List Ratings Lowered BBVA-4 PYME Fondo de Titulizacion de Activos EUR1.25 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- B A+ (sf) AA- (sf) BBVA-5 FTPYME Fondo de Titulizacion de Activos EUR1.9 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1 AA+ (sf) AAA (sf) A2 AA+ (sf) AAA (sf) A3(G) AA+ (sf) AAA (sf) Ratings Lowered and Removed From Creditwatch Negative BBVA Empresas 1, Fondo de Titulizacion de Activos EUR1.45 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB+ (sf) A- (sf)/Watch Neg C B+ (sf) BBB (sf)/Watch Neg BBVA-4 PYME Fondo de Titulizacion de Activos EUR1.25 Billion Mortgage-Backed Floating-Rate Notes Rating ------ Class To From ----- -- ---- C BB- (sf) BBB (sf)/Watch Neg BBVA-5 FTPYME Fondo de Titulizacion de Activos EUR1.9 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB+ (sf) A- (sf)/Watch Neg BBVA-6 FTPYME Fondo de Titulizacion de Activos EUR1.5 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- A1 AA- (sf) AAA (sf)/Watch Neg A2(G) AA- (sf) AAA (sf)/Watch Neg B B+ (sf) BBB (sf)/Watch Neg C CCC (sf) B- (sf)/Watch Neg BBVA-7 FTGENCAT Fondo de Titulizacion de Activos EUR250 Million Floating-Rate Notes Rating ------ Class To From ----- -- ---- A AA+ (sf) AAA (sf)/Watch Neg A2(G) AA+ (sf) AAA (sf)/Watch Neg B BB+ (sf) A (sf)/Watch Neg C B- (sf) BB (sf)/Watch Neg BBVA-8 FTPYME Fondo de Titulizacion de Activos EUR1.1 Billion Floating-Rate Notes Rating ------ Class To From ----- -- ---- B BBB (sf) A (sf)/Watch Neg C BB- (sf) BBB (sf)/Watch Neg Ratings Affirmed BBVA Empresas 1, Fondo de Titulizacion de Activos EUR1.45 Billion Floating-Rate Notes Class Rating ----- ------ A1 AAA (sf) A2 AAA (sf) A3 AAA (sf) BBVA-4 PYME Fondo de Titulizacion de Activos EUR1.25 Billion Mortgage-Backed Floating-Rate Notes Class Rating ----- ------ A2 AAA (sf) BBVA-5 FTPYME Fondo de Titulizacion de Activos EUR1.9 Billion Floating-Rate Notes Class Rating ----- ------ C AAA (sf) BBVA-8 FTPYME Fondo de Titulizacion de Activos EUR1.1 Billion Floating-Rate Notes Class Rating ----- ------ A1 AAA (sf) A2(G) AAA (sf) BBVA 6: Moody's Reviews 'Ca (sf)' Rating on C Certificate --------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade certain classes of notes issued by these Spanish asset- backed securities SME transactions: -- GC FTGENCAT CAIXA TARRAGONA 1, FTA -- PYMECAT 2 FTPYME, FTA -- BBVA 6 FTPYME, FTA A complete list of the 12 affected tranches can be found below: Issuer: BBVA-6 FTPYME, Fondo de Titulizacion de Activos -- EUR1201.9M A1 Certificate, Aa3 (sf) Placed Under Review for Possible Downgrade; previously on Jul 31, 2009 Downgraded to Aa3 (sf) -- EUR50.3M B Certificate, B1 (sf) Placed Under Review for Possible Downgrade; previously on Jul 31, 2009 Downgraded to B1 (sf) -- EUR32.3M C Certificate, Ca (sf) Placed Under Review for Possible Downgrade; previously on Jul 31, 2009 Downgraded to Ca (sf) Issuer: GC FTGENCAT Caixa Tarragona, FTA -- EUR104.3M AS Certificate, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Jul 1, 2008 Definitive Rating Assigned Aaa (sf) -- EUR93.2M AG Certificate, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Jul 1, 2008 Definitive Rating Assigned Aaa (sf) -- EUR25.7M B Certificate, A3 (sf) Placed Under Review for Possible Downgrade; previously on Jul 1, 2008 Definitive Rating Assigned A3 (sf) -- EUR16.8M C Certificate, Baa3 (sf) Placed Under Review for Possible Downgrade; previously on Jul 1, 2008 Definitive Rating Assigned Baa3 (sf) Issuer: PYMECAT 2 FTPYME Fondo de Titulizaci�n de Activos -- EUR237.7M A1 Certificate, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Oct 8, 2008 Definitive Rating Assigned Aaa (sf) -- EUR189.8M A2(G) Certificate, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Oct 8, 2008 Definitive Rating Assigned Aaa (sf) -- EUR17.5M B Certificate, Aa2 (sf) Placed Under Review for Possible Downgrade; previously on Oct 8, 2008 Definitive Rating Assigned Aa2 (sf) -- EUR20M C Certificate, A3 (sf) Placed Under Review for Possible Downgrade; previously on Oct 8, 2008 Definitive Rating Assigned A3 (sf) -- EUR35M D Certificate, Baa3 (sf) Placed Under Review for Possible Downgrade; previously on Oct 8, 2008 Definitive Rating Assigned Baa3 (sf) Ratings Rationale The rating actions follow Moody's periodic performance review of Spanish SME ABS and reflect the weaker-than-expected performance in the affected transactions due to the stressful economic environment over the past two years. As part of the performance review, Moody's considered these four indicators when evaluating the portfolio performance of Spanish SME ABS: (i) the amount of cumulative defaults or losses that have already occurred, compared with the latest default or loss assumptions; (ii) the evolution of delinquency levels over the last year; (iii) the evolution of credit enhancement since closing; and (iv) the comparison between projected defaults or losses and the credit enhancement level. Moody's notes that the overall portfolio performance is -- on average -- in line with the rating agency's expectations. However, Moody's identified three negative outliers performing worse-than-expected, according to these performance indicators. Transaction performance as of the date of the review GC FTGENCAT CAIXA TARRAGONA 1, FTA This is a securitization of Spanish SME loans originated by by Caixa d'Estalvis de Tarragona (now part of Caixa Catalunya, Tarragona i Manresa A3/P-2 since the merger on 1 July 2010) under the FTGENCAT program in July 2008. As of 30 September 2010, the reserve fund was drawn representing 79% of its target amount. The cumulative default rate (using a "cumulative 90 days" default proxy) stands at 6.2% of total securitized assets, which compares with the original assumption of 12%. The pool factor of total securitized assets was 78% in September 2010. The relatively high default rate observed at this stage and the lower-than-average credit enhancement levels (particularly for tranche C) result in the review for possible downgrade of the ratings of all notes issued in this transaction. PYMECAT 2 FTPYME, FTA This is a securitization of Spanish SME loans originated by by Caixa d'Estalvis de Catalunya (now part of Caixa Catalunya, Tarragona i Manresa A3/P-2 since the merger on 1 July 2010) under the FTPYME program in October 2008. As of September 2008, the cumulative default rate (using a "cumulative 90 days" default proxy) was 9.8% of total securitized assets, compared with the original assumption of 11.5%. The pool factor of total securitized assets was 58% in September 2010. Moody's note that 90-360 day delinquency levels in this transaction (3.2% of the current pool balance) greatly exceed the Spanish SME index (1.8% of current pool balance). The combination of the higher-than- expected default rate observed at this stage -- and current credit enhancement levels available to sustain future losses -- exerts pressure on the ratings of the notes, which have therefore been placed on review for possible downgrade. BBVA 6 FTPYME, FTA This is a securitization of Spanish SME loans originated by Banco Bilbao Vizcaya Argentaria, S.A. (Aa2/P-1) under the FTPYME program in June 2007. This transaction was reviewed in July 2009 due to worse-than-expected performance, which resulted in the downgrade of several tranches. As of September 2010, the cumulative default rate (using a "cumulative 90 days" default proxy) was 7.3% of total securitized pool balance, compared with the revised assumption of 8.4%. The pool factor of total securitized assets was 31% in September 2010. Moody's note that 90-360 day delinquency levels in this transaction (2.9% of the current pool balance) well exceeds the Spanish SME index (1.8% of the current pool balance). In September 2010, cumulative write-offs reached 4% of original pool balance, and the reserve fund was fully depleted, resulting in an amortization deficit. The relatively higher-than-expected default rate observed at this stage -- combined with the current credit enhancement levels -- therefore results in the review for possible downgrade of the ratings of all but one notes in this deal. Indeed, Class A2 is not affected by the rating action given it benefits from a guarantee from the Kingdom of Spain, rated Aa1. Economic situation In addition to the transaction-specific analysis, Moody's also looked at macroeconomic factors that influence an SME's ability to repay their debt, such as GDP growth and the evolution of the real-estate market. Moody's believes that GDP growth is a fundamental driver of performance for this pro-cyclical portfolio. Uncertainties regarding the timing and magnitude of the return to growth, high unemployment and a troubled real-estate market are likely to further weigh on the performance of Spanish SME transactions. Review Process As part of its detailed transaction-by-transaction review, Moody's will reassess the cumulative default rate for the remaining life of each transaction, reflecting the collateral performance to date as well as the future macroeconomic environment. Moody's will also request, whenever not already available, updated data on pool characteristics such as borrower industry, value of the collateral and delinquency status. Where necessary, the rating agency will also seek to keep abreast of current servicing and collection procedures. Moody's expects to conclude its detailed transaction reviews over the next six months. 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 adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process. RACE POINT: Moody's Assigns 'Ba2' Rating to US$370 Mil. Loan ------------------------------------------------------------ Moody's Investors Service has assigned a Ba2 rating to the US$370 million senior secured term loan due 2017, for Race Point Power. The rating outlook is stable. The Borrowers will actually consist of four individual holding companies that will be the indirect owners of equity interests in a portfolio of power projects in the US and Spain that are currently held indirectly by three separate funds of ArcLight Capital Partners, LLC. The Borrowers are Race Point Power II LLC, Race Point Power III LLC, Race Point Power IV LLC (as the "US Borrowers") and NeoElectra Lux S.ar.l, the last of which is the Borrower in respect of the Spanish power assets (as the "Euro Borrower" and together with the US Borrowers, the "Borrowers" or "Co-Borrowers"). Obligations of the Borrowers will be joint and several with respect to all obligations under the term loan. The $370 million senior secured term loan facility will be allocated to a US dollar-denominated tranche (as the "Dollar Tranche") and a euro-denominated tranche (as the "Euro Tranche"), in amounts that are still to be determined. Each US Borrower will be entitled to borrow a portion of the Dollar Tranche up to an agreed cap for such US Borrower. All the proceeds of the Euro Tranche will be borrowed by the Euro Borrower. Proceeds from the transaction will be used (i) to refinance existing indebtedness (at existing holding company levels above the projects in order to simplify the capital structure); (ii) to acquire the remaining 50% interest of Crawfish (one of the US projects); (iii) to pay related transaction fees and expenses; (iv) for general corporate purposes, including permitted dividends; (v) to fund a liquidity and capex reserve to fund various project accounts; (vi) to fund a Lea Power reserve account and (vii) to cash collateralize permitted LCs or alternatively, ArcLight will post a letter of credit. The portfolio consists of 8 power generation investments with a total of 24 power plants throughout the US and Spain. The portfolio is composed of approximately 1,412MWs of combined generation capacity, with net ArcLight ownership totaling 1,272MWs. The assets are located in Connecticut, Maine, Michigan, Nevada, New Mexico, Pennsylvania, Texas and Spain. ArcLight has majority-owned stakes in 6 of the 8 investments and 100% ownership in 5 investments. There is project level debt at 6 of the 8 investments. ArcLight is a private equity investment firm founded in 2001 focused exclusively on the power and energy sectors. ArcLight has approximately $6.8 billion under management, with over 6,000 net MWs in operation or construction across its four funds. ArcLight owns a diverse portfolio of companies in the power generation, transmission and distribution, midstream and upstream sectors. The rating primarily reflects: (a) the diversity of a portfolio of 8 power projects in the US and Spain; (b) the largely contracted nature of the portfolio (90% of cash flows are contracted), which provides stable cash flows through long-term power purchase agreements, primarily with investment grade counterparties; and (c) the strong operating histories of the generation projects with commercially proven technologies. However, the recommendation also considers: (i) the high consolidated leverage that includes project level debt associated with the underlying project assets; (ii) regulatory risk and potential for changes to the regulated tariff structure in Spain as approximately 44% of cash flows come from projects at NeoElectra in Spain; (iii) refinancing risk; and (iv) the structurally subordinated position of the holding companies' lenders. The Ba2 senior secured rating for the Borrowers considers these strengths: 1) Diversified portfolio with five different primary fuel types (natural gas, hydro, diesel, waste coal and biomass) located across seven states and Spain 2) 90% of the cash flows are contracted 3) Diversified set of offtakers make up of PPAs with nine different entities, eight of which are investment grade 4) All Projects have solid availability factors and are operated and maintained by known and experienced service providers including CAMS, Dynegy, Terra-Gen and Cogentrix 5) Majority owned stakes in 6 of the 8 investments and 100% ownership of 5 projects, thereby providing for a high degree of operational and management control by ArcLight The rating also reflects these areas of credit concern: 1) High consolidated leverage 2) Regulatory risk as about 44% of the cash flows are coming from the projects at NeoElectra in Spain 3) The structurally subordinated position of the lenders to the holding company, in relation to existing debt at 6 of the 8 projects totaling approximately $440 million 4) Refinancing risk when the credit facility matures at the end of 2017, leaving about $133 million outstanding (35% of the original amount) in Moody's base case 5) Modest foreign exchange risk due to the Spanish projects; the joint and several nature of the obligations mean that the US dollar cash flows may be needed to support the Euro Tranche should there be a shortfall in the euro cash flows, and vice versa 6) Average age of the plants (10 years) potentially increases the operating risk over time. The credit facilities will be secured on a pari passu basis by a first priority perfected security interest in substantially all assets of the Co-Borrowers (and their respective unencumbered wholly-owned subsidiaries), including cash distributions from each of the projects, the Co-Borrowers' equity interests in each of their direct or indirect subsidiaries (except to the extent prohibited by the terms of financing documents entered into at the project level, applicable law or the related project documents), all Co-Borrowers accounts, and the equity interests of the parent holding companies of each of the Borrowers (collectively, the "Holding Companies") in the Co-Borrowers. All obligations under the Facility will also be unconditionally guaranteed by each direct or indirect subsidiary of the Co-Borrowers (except to the extent prohibited by the terms of financing documents entered into at the project level or the related project documents) and each of the Holding Companies. Moody's also considered structural features in the term loan agreement, including a cash sweep in years 1-4 equal to the greater of (i) 75% of excess cash flow after scheduled debt service and (ii) an amount required to achieve a target debt balance, and a cash sweep in years 5-7 of 100% of excess cash flow. The transaction provides for only a 1% required annual amortization, with additional amortization to be based upon the cash flow sweep mechanism. There is also a 6 month debt service reserve covering forward interest and scheduled debt service via cash or a letter of credit to be provided by ArcLight, a US$13.4 million liquidity and capex reserve account, a US$10 million reserve account in respect of the Hobbs Facility and a set of financial and other covenants that restrict the business and financial activities of the Borrowers. The stable outlook reflects the expectation that the portfolio of projects will generate relatively stable and predictable cash flows, since the cash flows are derived from long term contracts with largely investment grade counterparties. The outlook also assumes the near term stability in the credit quality of the project off-takers and anticipates that the projects will continue to be operated in a manner that allows them to perform as expected. Positive trends that could lead Moody's to consider an upgrade would include a more rapid pay down of the project level debt than currently projected and better than projected base case financial performance. Negative trends that could lead Moody's to consider a downgrade would include credit deterioration by key contractual off-takers, substantial operating performance difficulties that result in a meaningful loss of cash flow available for debt service, significant changes to the regulated tariff structure in Spain that is detrimental to the cash flows at NeoElectra, and financial performance that is consistently below expectations. The rating is predicated upon final documentation in accordance with Moody's current understanding of the transaction and final debt sizing consistent with initially projected credit metrics. The Co-Borrowers are special purpose entities formed by ArcLight Capital Partners, LLC to hold its interests in a portfolio consisting of 8 power projects in the US and Spain totaling 1,272 MWs of net generation. ============= U K R A I N E ============= NADRA BANK: Liquidation Sought by IMF, Izvestia Says ---------------------------------------------------- Daryna Krasnolutska at Bloomberg News, citing Ekonomicheskie Izvestia newspaper, reports that the International Monetary Fund urged the Ukrainian government and the central bank to liquidate the country's lenders VAT Nadra Bank and PAT Rodovid. As reported by the Troubled Company Reporter-Europe on Oct. 4, 2010, Moody's Investors Service withdrew all ratings of Bank Nadra. At the time of withdrawal, Bank Nadra's ratings were: long-term local and foreign currency deposit ratings of Caa2, short-term local and foreign currency ratings of Not Prime, Bank Financial Strength Rating of E and National Scale Rating of B3.ua. Moody's said the outlook on the bank's BFSR was stable, while the outlook on the deposit ratings was negative. Headquartered in Kiev, Ukraine, Bank Nadra reported total assets of UAH24.8 billion (US$3.1 billion) and total equity of UAH475 million (US$59.3 million) according to Ukrainian Accounting Standards at year-end 2009. RODOVID BANK: Liquidation Sought by IMF, Izvestia Says ------------------------------------------------------ Daryna Krasnolutska at Bloomberg News, citing Ekonomicheskie Izvestia newspaper, reports that the International Monetary Fund urged the Ukrainian government and the central bank to liquidate the country's lenders VAT Nadra Bank and PAT Rodovid. As reported by the Troubled Company Reporter-Europe on Oct. 1, 2010, Bloomberg News, citing Interfax news, said Ukraine's central bank was asking the government to put an additional UAH5.8 billion (US$730,368) into the statutory capital of Rodovid. Bloomberg disclosed the central bank extended its temporary management of Rodovid through Dec. 15. Rodovid Bank is based in Kiev. The net assets of the bank were estimated at UAH16,952.2 million as of January 1, 2010, the credits and debts of clients were valued at UAH5,355.5 million, and the equity of shareholders was estimated at UAH4,336.4 million, according to Ukrainian News Agency. STATE SAVINGS: Fitch Assigns 'B' Rating to Two Classes of Bonds --------------------------------------------------------------- Fitch Ratings has assigned JSC State Savings Bank of Ukraine's Series C and D bonds expected Long-term local currency ratings of 'B', expected National Long-term ratings of 'AA-(ukr)' and a Recovery Rating of 'RR4'. The Series C and Series D bonds are expected to amount to UAH500 million each and have maturities of two and five years, respectively. The final ratings are contingent on the receipt of final documentation conforming materially to information already received. Oschadbank has a Foreign Currency Long-term Issuer Default Rating at 'B', a Local Currency Long-term IDR at 'B' with Stable Outlook, a Short-term IDR at 'B', an Individual Rating at 'D/E', a Support Rating at '4' and a National Long-term at 'AA-(ukr)', Stable Outlook. Fitch understands that the bank's obligations under the new issues will rank at least equally with all its other unsecured and unsubordinated creditors, except those preferred by relevant Ukrainian legislation. Under Ukrainian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-H110, retail depositors accounted for 41% of the bank's non-equity funding, according to the bank's statutory accounts. Oschadbank was the third-largest Ukrainian bank by assets at end- H110. It is the successor of the Ukrainian branch of the former Soviet Union savings bank and has the largest branch network in the country with over 6,000 outlets. The Cabinet of Ministers of Ukraine holds 100% of the bank's shares. =========================== U N I T E D K I N G D O M =========================== BAA PLC: Fitch Assigns 'BB+' Rating to GBP325 Million Notes ----------------------------------------------------------- Fitch Ratings has assigned BAA (SH) plc's GBP325 million notes, due March 2017, a final rating of 'BB+' with Stable Outlook. The rating addresses the ability of BAA (SH) to service and repay its senior secured debt, including the bond, via regular cash payments from BAA (SP) Limited (BAA (SP) or the OpCo). The rating reflects the subordinated position of BAA (SH) creditors below those of BAA (SP) and the reliance of BAA (SH) on cash distributions from its subsidiary, which could be halted in extreme circumstances. It also reflects the modest refinancing risk facing BAA (SH) at the bond's maturity date in 2017, and when its bank facility -- which ranks equally with the notes -- reach maturity in five years. Although BAA (SH) is confident it will be able to refinance the bank loan from surplus cash or by raising additional debt at the OpCo level, Fitch has also considered the scenario where the debt is refinanced at the HoldCo level. Fitch also considered in the analysis the robustness of passenger traffic (volume risk), as evidenced during the recent economic crisis by the strong resilience of Heathrow (90% of the company's revenue) as well as the Q310 traffic update for the airports. The agency further took into account the predictability of the tariff (price risk) provided by the regulatory framework in a context of strong market power for Heathrow. Other factors considered are the strong ability of the operator to manage operational and financial risks and the residual exposure to low inflation. Fitch has determined the rating using a consolidated analysis of BAA (SH) and BAA (SP). Most rating factors and analysis items are thus common with those implemented for BAA Funding, and the same metrics, with relevant levels of debt, were considered. In addition, Fitch paid specific attention to the structural features that could hamper the ability of BAA (SP) to upstream sufficient cash to BAA (SH) in order to service the rated debt given its effective subordination. Fitch has built a rating case, the outcome of which indicates that BAA (SP) has strong capacity, both in terms of cash flow and its ability to raise additional debt at OpCo level, to make cash distributions to BAA (SH) sufficiently large to comfortably service and to repay debt. It also suggests that the likelihood of a BAA (SP) level lock-up covenant being triggered, and therefore its cash payment to BAA (SH) being prevented, is low. BAA (SP)'s regulated airports -- Heathrow and Stansted -- have both seen falling passenger traffic over the last three years, although as expected, Heathrow has proven more resilient in this regard. Recent data suggests that passenger traffic at Heathrow has recovered and that, excluding the one-off effects of the volcanic ash cloud as well as prolonged airline industrial action earlier in the year, traffic at the regulated airports will be higher in 2010 compared with 2009. BLACKPOOL PANTHERS: Rugby Football League Membership Cancelled -------------------------------------------------------------- Blackpool Panthers will not take part in Championship One next season after having their membership of the Rugby Football League cancelled, BBC News reports. BBC News says the club, who went into administration in October, missed last week's deadline to present plans for their involvement. According to the report, Panthers enjoyed their best-ever season in 2010, as they reached the end-of-season play-offs. But their off-field problems worsened after head coach Martin Crompton decided to step down. BBC News reports that the club held crisis talks with potential investors at the beginning of November in an attempt to stave off the threat of liquidation. Vice-chairman John Chadwick told BBC Radio Lancashire that he was fearing the worst. "The club ceased trading a number of weeks ago and accountants and insolvency experts have been spoken to," Mr. Chadwick told BBC Radio Lancashire. "I just hope something positive comes out with the possible new investors, the green light is given and a business plan is produced." BBC News notes RFL chief operating officer Ralph Rimmer said: "The RFL has done everything possible to ensure the continuing involvement of Blackpool Panthers in Co-operative Championship One and we had every hope that a credible plan would be presented." "Despite a flexible approach to deadlines and ongoing support from the RFL as well as a commitment from the club's representatives right up to the last minute that a plan would be forthcoming, we have received notification that no proposal will be presented. With plans for the 2011 season at an advanced stage we have had no choice but to regretfully decide to cancel their membership," Mr. Rimmer said, according to BBC News. The Troubled Company Reporter-Europe reported on Oct. 7, 2010, that Blackpool Panthers RLFC was placed into administration. Andy Moore at The Gazette said that the club has struggled on without a major investor since the resignation of chairman and owner Bobby Hope in June, though the club's financial problems were already growing before then. The co-operative Championship One club, who have been tenants at Fylde RFC for the past four seasons, owe a considerable sum to the Inland Revenue and currently have no players on their books -- their entire 2010 squad are now out of contract. Lytham St Annes, Lancashire-based Blackpool Panthers RLFC -- http://www.blackpoolpanthers-rlfc.co.uk/-- is a football club. CHAMOIS FURNISHINGS: Goes Into Administration; Cuts 57 Jobs ----------------------------------------------------------- Hanna Sharpe at Business Sale reports that Chamois Furnishings has fallen into administration after failing to secure a buyer. According to the report, despite having the support of well-known environmentalist David Bellamy, the business was unable to sustain itself following the spending cuts, which hit public sector housing work hard. The report relates that turnover dropped below GBP3 million and the company was finally forced to admit defeat, after months of fending off rumors of trouble. Business Sale notes that Andrew Jones-Dutt, Chamois founder and CEO, denied that his firm was in trouble in October of this year, saying, Business Sale relates, since then, Bob Young and Steve Currie, from Begbies Traynor, Stoke-on-Trent, have been appointed as joint administrators. All 57 jobs at the company have been lost and the goodwill and customer list has already been sold on to a rival unnamed firm, the report discloses. Headquartered in Showell Road, Bushbury, Chamois Furnishings, provided ecologically-friendly kitchens to local councils and housing associations. CRUSADERS: Winding-Up Order Adjourned for a Week ------------------------------------------------ The uncertainty over Crusaders' future was prolonged when a winding-up order was adjourned for a week rather than dropped as the Welsh club had predicted, guardian.co.uk reports. According to the report, the hearing provided the first confirmation that the club have applied to go into administration, with a lawyer for the administrators telling the court that the debts owed to Her Majesty's Revenue & Customs and other creditors had been paid. However, the report relates, Matthew Smith, counsel for HMRC, refuted that, and the court therefore refused to drop the winding-up petition as requested. Earlier the club had issued a press release announcing that two more members of last season's squad, Peter Lupton and Frank Winterstein, had signed new contracts until the end of 2012, the report notes. Crusaders are a Welsh professional rugby league club based in Wrexham, North Wales. CRYSTAL UMBRELLA: Unit Enters Administration as Group Restructures ------------------------------------------------------------------ Crystal Umbrella Services Ltd has entered administration and has been bought by another company owned by its own parent group, Recruiter reports. The report relates that an unnamed company spokesman said: "[the company] continues to be open for business as usual". According to the report, on October 28, 2010, Asher Miller and Henry Lan of David Rubin & Partners LLP were appointed as joint administrators. Crystal Umbrella Services' move into administration was part of a group restructuring, David Bailey, chief finance officer at Crystal Umbrella Services, told Recruiter. "Crystal Umbrella itself has not gone into administration. We are pleased to announce the restructure of the group. Three of us including myself have joined the board bringing substantial management and investment experience to the company. We are all now owner directors. The method of undertaking, the restructure, did put Crystal Umbrella Services Ltd, which is just one of our many group services into administration but that business and all of the clients and everything else transferred in one minute into the new company. No worker or agency has been affected. They have all been notified. Crystal Umbrella continues to be open for business as usual. In the last two weeks since that restructuring, we have continued to pay 1,000+ contractors on time and in full," the report quoted Mr. Bailey as saying. According to Recruiter, Chief executive Colin Howell added: "Crystal Umbrella Ltd has up until now been owned and run by myself and Alan Little. At the end of October, we brought in three new directors who have also invested in to a new company within the business centre. Crystal Umbrella Services Ltd was also owned and run my myself and Alan Little, and was part of a group of companies under the same controlling party which included a holding company ALCO Holdings Limited. Aqua Bubble Ltd is a new company incorporated to continue to process and manage the contracts of our flexible workforce. This company also trades as Crystal Umbrella. This restructure brings finance and resource at a time of continued change for the industry. . . We will use this opportunity to improve our infrastructure and invest once again in new systems and technology." Crystal Umbrella Services Ltd is United Kingdom's No 1 PAYE Umbrella Company as voted by contractors themselves. EMI GROUP: CEO Roger Faxon Rules Out Break-Up to Pay Debts ---------------------------------------------------------- Kristen Schweizer at Bloomberg News reports that EMI Group Ltd.'s Chief Executive Officer Roger Faxon quelled speculation the record company would be split and parts sold off to competitors to raise funds so owner Guy Hands can meet debt payments to Citigroup Inc. Bloomberg relates according to an internal memo to employees it obtained, Mr. Faxon said EMI was "easily meeting all its debt obligations" and wasn't in danger of "any form of bankruptcy." According to the memo, no rival could financially "stomach" the demands of taking over another big company and regulatory issues would present obstacles, as they did when Warner and EMI attempted to merge in 2000, Bloomberg notes. According to Bloomberg, though splitting EMI was considered in the past, Mr. Faxon said it was abandoned because "the best way to build value is for EMI to remain as one company." Selling off catalog assets was ruled out as "utterly idiotic," according to the memo, as it would lower the value of the rest of EMI, Bloomberg discloses. As reported by the Troubled Company Reporter-Europe on Nov. 8, 2010, The Financial Times said Citigroup won its courtroom battle with Terra Firma's Mr. Hands over the GBP4.2-billion buy-out of EMI in 2007. The FT disclosed a New York jury found unanimously for the bank at the end of a three-week trial that had seen the British private equity investor trade allegations with David Wormsley, the senior Citi figure he once counted as his closest friend and adviser. Terra Firma, as cited by the FT, said it reserved its right to appeal and would focus on securing a financial restructuring of EMI with Citi. The impact on EMI will become clearer over the next five months, as the next test of its ability to meet covenants in its GBP3 billion of loans from Citigroup comes up at the end of March, according to the FT. The FT disclosed the music group has failed these regular tests for the past couple of years, but Mr. Hands has been able to keep control by putting more of his investors' money into the company as "equity cures", allowing the extra cash to be counted as profits. The FT noted it seems unlikely investors will give Mr. Hands more money in March, making it possible that the business will default on its debt and be taken over by its only creditor, Citigroup. If that happens, the bank is expected to seek a rapid sale of EMI, probably by splitting it into two parts: music publishing, with its valuable back catalogue of songs, and recorded music, the loss-making business of producing new music, according to the FT. EMI Group Ltd. -- http://www.emigroup.com/-- is the fourth largest record company in terms of market share (behind Universal Music Group, Sony Music Entertainment, and Warner Music Group). It houses recorded music segment EMI Music and EMI Music Publishing. EMI Music distributes CDs, videos, and other formats primarily through imprints and divisions such as Capitol Records and Virgin, and sports a roster of artists such as The Beastie Boys, Norah Jones, and Lenny Kravitz. EMI Music Publishing, the world's largest music publisher, handles the rights to more than a million songs. EMI Music operates through regional divisions (EMI Music North America, International, and UK & Ireland). Private equity firm Terra Firma owns EMI. INVERESK PAPER COMPANY: Court Awards GBP4.25MM to Tullis Russell ---------------------------------------------------------------- Helen Morris at PrintWeek reports that Tullis Russell has been awarded GBP4.25 million in compensation in its legal battle with receivership-hit Inveresk and a further GBP555,000 in reimbursement of costs. According to the report, the decision relates to Inveresk's sale of its Gemini brand to Tullis Russell -- the company said it has been awarded the sum in respect of the damage to the brand caused by Inveresk's actions. PrintWeek relates that Lord Drummond Young issued his judgment on November 10 and found "resoundingly in Tullis Russell's favour", with the company's claims for reimbursement of compensation paid to Tullis Russell customers (GBP500,000) and costs incurred in handling customer complaints (GBP55,000) upheld in full. The judge, PrintWeek notes, went on to award a further GBP4.25 million in compensation in respect of the damage to the Gemini brand caused by Inveresk's actions. Tullis Russell said that there will also be interest due to be paid as well as expenses, the report relates. PrintWeek discloses that the judgment follows a successful appeal earlier this year to the Supreme Court against Inveresk's claim for payment of approximately GBP1 million. Tullis Russell Papermakers first took legal action against Inveresk over the purchase by Tullis Russell of the Gemini paper brand from Inveresk in July 2007, the report adds. As reported in the Troubled Company Reporter-Europe on October 18, 2010, PrintWeek said that Inveresk is in receivership after Ernst & Young was appointed to the company, putting the jobs of its 35 staff at risk. Andrew Davison, Colin Dempster and Chris Marsden from Ernst & Young were appointed joint receivers on October 8, 2010. Headquartered in Musselburgh, Scotland, Inveresk Paper Company was incorporated in 1922. Inveresk has a mill in Somerset, which produces speciality products for niche markets. The company also has a registered office in Stirling, and a site in Singapore. OVERFINCH BESPOKE: Goes Into Administration ------------------------------------------- Overfinch Bespoke Vehicles has gone into administration. Honest John News reports that the firm said their going into administration was due to a series of "significant one-off non- trading costs" over the past 18 months. The report relates that it has now been placed in the hands of administrators Lisa Hogg and Claire Foster of Wilson Field, in Sheffield. They are being advised by the legal firm Clarion in Leeds, the report notes. According to the report, joint administrator Lisa Hogg said: "[O]ver the last 18 months the company has incurred significant one-off non-trading costs which have severely affected cash flow. We are continuing to trade the business while a purchaser is sought and we are already in talks with a number of interested parties." Headquartered in Farnham, Surrey Overfinch, Bespoke Vehicles was established in 1975. It produces the The Holland & Holland Range Rover. PWB HEALTH: Provisional Liquidator Appointed; Assets Up for Sale ---------------------------------------------------------------- BBC News reports that PWB Health Ltd has gone into liquidation after running out of cash. Matt Henderson, partner of Johnston Carmichael, has been appointed provisional liquidator to put the company and its assets up for sale. The company, BBC News relates, received GBP1,147,371 from the Scottish Enterprise Co-Investment Fund in 2008 but the company's future is now in doubt. "Sales of this product have been good but the company has been under immense pressure due to worldwide demand," BBC News quoted Mr. Henderson as saying. "The sheer volume of orders coupled with a relatively low margin has crippled working capital and has left the business cash-strapped." Mr. Henderson, according to BBC News, said the company had found a new low-cost alternative for its technology and could begin trading under new owners. PWB Health Ltd was founded in February 2007 and is funded by the Scottish Government and private capital to develop innovative home-use medical devices. The Company manufactures and distributes Breastlight, a medical device that allows women to check their breasts for lumps at home. RMAC SECURITIES: S&P Cuts Ratings on Various Classes of Notes ------------------------------------------------------------- Standard & Poor's Ratings Services lowered and removed from CreditWatch negative its credit ratings on notes in RMAC Securities No. 1 PLC series 2006-NS2 (classes M2, B1, and B2), series 2006-NS4 (classes M1, M2, and B1), and series 2007-NS1 (classes M1 and M2). At the same time, S&P affirmed its credit ratings on all other classes of notes in these transactions. These rating actions follow S&P's credit and cash flow analysis using the most recent information available for these transactions, which is as of September 2010. The performance in all three transactions continued to stabilize this quarter, with total arrears falling. However, 90+ day arrears remain high: RMAC 2006-NS2 exhibits 90+ day arrears of 23.67%, RMAC 2006-NS4 shows 21.67%, and RMAC 2007-NS1 shows 24.22%. S&P views these arrears as an indicator of future repossessions, which S&P has factored into its rating analysis. In S&P's view, this has resulted in a deterioration of the creditworthiness of the subordinate notes in all three transactions. In addition, the majority of the loans in all three transactions are paying floating-rate interest, exposing these borrowers to potential payment shock if the base rate rises in the future. S&P believes credit enhancement has increased for the senior notes in RMAC 2006-NS2 (classes A2 and M1), RMAC 2006-NS4 (classes A2 and A3), and RMAC 2007-NS1 (classes A1 and A2). S&P views this as an additional benefit for the notes in sustaining their current ratings and therefore S&P has affirmed its ratings on those tranches. Also, S&P continues to see consistent levels of excess spread in both RMAC 2006-NS2 and RMAC 2006-NS4, which S&P believes are encouraging signs. Performance in the past quarter also showed that RMAC 2007-NS1's reserve fund was at its required amount for the first time since September 2007. RMAC 2006-NS2, RMAC 2006-NS4, and RMAC 2007-NS1 comprise first- ranking mortgages secured over properties in England, Northern Ireland, Scotland, and Wales. Ratings List Ratings Affirmed RMAC 2006-NS2 EUR317.2 Million, EUR365.9 Million, and US$243 Million Mortgage-Backed Floating-Rate Notes Series 2006-NS2 Rating ------ Class To From ----- -- ---- A2a AAA (sf) AAA (sf) A2c AAA (sf) AAA (sf) M1a AA (sf) AA (sf) M1c AA (sf) AA (sf) RMAC 2006-NS4 EUR830 Million, EUR263.8 Million, and $477 Million Mortgage-Backed Floating-Rate Notes Series 2006-NS4 Rating ------ Class To From ----- -- ---- A2a AAA (sf) AAA (sf) A3a AAA (sf) AAA (sf) RMAC 2007-NS1 EUR296.8 Million, EUR214.0 Million, and US$168.0 Million Mortgage-Backed Floating-Rate Notes Series 2007-NS1 Rating ------ Class To From ----- -- ---- A1a AAA (sf) AAA (sf) A1b AAA (sf) AAA (sf) A1c AAA (sf) AAA (sf) A2a AA+ (sf) AA+ (sf) A2b AA+ (sf) AA+ (sf) A2c AA+ (sf) AA+ (sf) B1a B- (sf) B- (sf) B1c B- (sf) B- (sf) Ratings Lowered and Removed From CreditWatch Negative RMAC 2006-NS2 EUR317.2 Million, EUR365.9 Million, and US$243 Million Mortgage-Backed Floating-Rate Notes Series 2006-NS2 Rating ------ Class To From ----- -- ---- M2c BBB+ (sf) A+ (sf)/Watch Neg B1a BB+ (sf) BBB+ (sf)/Watch Neg B1c BB+ (sf) BBB+ (sf)/Watch Neg B2a B+ (sf) BBB- (sf)/Watch Neg RMAC 2006-NS4 EUR830 Million, EUR263.8 Million, and US$477 Million Mortgage-Backed Floating-Rate Notes Series 2006-NS4 Rating ------ Class To From ----- -- ---- M1a AA (sf) AA+ (sf)/Watch Neg M1c AA (sf) AA+ (sf)/Watch Neg M2a A- (sf) A+ (sf)/Watch Neg M2c A- (sf) A+ (sf)/Watch Neg B1a B (sf) BB (sf)/Watch Neg B1c B (sf) BB (sf)/Watch Neg RMAC 2007-NS1 EUR296.8 Million, EUR214.0 Million, and US$168.0 Million Mortgage-Backed Floating-Rate Notes Series 2007-NS1 Rating ------ Class To From ----- -- ---- M1a BBB+ (sf) A (sf)/Watch Neg M1c BBB+ (sf) A (sf)/Watch Neg M2c BB+ (sf) BBB (sf)/Watch Neg ROK PLC: Administration Affects Messingham School Project --------------------------------------------------------- ThisisScunthorpe.co.uk reports that the construction work to merge Messingham Junior School with the neighbouring Infant School has been halted after the Rok Group, which was managing the project, went into administration. According to the report, a North Lincolnshire Council spokeswoman said: "Unfortunately due to the company going into administration this week, building work has had to stop. We have made the site secure and we are currently in discussions on how we can continue the project. We will do our best to ensure that the project is completed." The report notes that consultancy firm PricewaterhouseCoopers (PwC) is currently seeking a new buyer for Rok Group. Mike Jervis, partner and joint administrator for PwC, said: "In response to changes in market conditions, Rok Plc had taken a number of steps to improve operations and to develop a sustainable and profitable business going forward. However, due to difficulties in meeting the company's financial obligations, the company and certain subsidiaries have been placed into administration to protect the business and assets," the report relates. The report adds that it was anticipated to be completed by the end of June 2011. ROK PLC -- http://www.rokgroup.com/-- is a holding company of a group of companies providing response maintenance, planned repairs and refurbishment and new build services in the United Kingdom. The Company operates in three segments: response maintenance; planned repairs and refurbishment, and new build. Rok Plc provides a range of plumbing, heating and electrical (PHE) services. The Company's wholly owned subsidiaries include Rok Building Limited, Rok Development Limited, Richardson Projects Limited, LAS Plant Limited, Rok Civil Engineering Limited and Tulloch Transport Limited. =============== X X X X X X X X =============== * BOND PRICING: For the Week November 8 to November 12, 2010 ------------------------------------------------------------ Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRIA ------- RAIFF ZENTRALBK 4.500 9/28/2035 EUR 69.50 BELGIUM ------- FORTIS BANK 8.750 12/7/2010 EUR 13.50 FINLAND ------- MUNI FINANCE PLC 1.000 6/30/2017 ZAR 66.50 MUNI FINANCE PLC 0.250 6/28/2040 CAD 24.00 MUNI FINANCE PLC 1.000 2/27/2018 AUD 68.90 MUNI FINANCE PLC 0.500 3/17/2025 CAD 54.70 MUNI FINANCE PLC 0.500 9/24/2020 CAD 69.70 FRANCE ------ AIR FRANCE-KLM 4.970 4/1/2015 EUR 16.30 ALCATEL SA 4.750 1/1/2011 EUR 16.70 ALCATEL-LUCENT 5.000 1/1/2015 EUR 3.30 ALTRAN TECHNOLOG 6.720 1/1/2015 EUR 4.90 ATOS ORIGIN SA 2.500 1/1/2016 EUR 51.40 CALYON 6.000 6/18/2047 EUR 49.00 CAP GEMINI SOGET 3.500 1/1/2014 EUR 42.20 CAP GEMINI SOGET 1.000 1/1/2012 EUR 43.10 CLUB MEDITERRANE 6.110 11/1/2015 EUR 17.90 EURAZEO 6.250 6/10/2014 EUR 59.60 FAURECIA 4.500 1/1/2015 EUR 23.10 GROUPE VIAL 2.500 1/1/2014 EUR 21.70 MAUREL ET PROM 7.125 7/31/2015 EUR 13.40 MAUREL ET PROM 7.125 7/31/2014 EUR 16.30 NEXANS SA 4.000 1/1/2016 EUR 63.90 PEUGEOT SA 4.450 1/1/2016 EUR 34.40 PUBLICIS GROUPE 1.000 1/18/2018 EUR 48.50 PUBLICIS GROUPE 3.125 7/30/2014 EUR 38.10 RHODIA SA 0.500 1/1/2014 EUR 48.80 SOC AIR FRANCE 2.750 4/1/2020 EUR 21.50 SOITEC 6.250 9/9/2014 EUR 10.30 TEM 4.250 1/1/2015 EUR 56.70 THEOLIA 2.700 1/1/2041 EUR 11.80 VALEO 2.375 1/1/2011 EUR 47.10 ZLOMREX INT FIN 8.500 2/1/2014 EUR 65.50 ZLOMREX INT FIN 8.500 2/1/2014 EUR 65.50 GERMANY ------- DEUTSCHE BK LOND 3.000 5/18/2012 CHF 64.70 DEUTSCHE BK LOND 0.500 8/25/2017 BRL 54.60 ESCADA AG 7.500 4/1/2012 EUR 18.00 HSH NORDBANK AG 4.375 2/14/2017 EUR 63.00 HVB REAL ESTATE 6.480 3/21/2022 EUR 13.60 HVB REAL ESTATE 6.570 3/18/2022 EUR 13.70 HYPO REAL ESTATE 7.496 5/8/2018 EUR 17.90 HYPO REAL ESTATE 8.000 6/6/2018 EUR 18.70 HYPOREAL INTL AG 8.060 5/2/2023 EUR 15.60 HYPOREAL INTL AG 4.560 3/28/2021 EUR 9.80 L-BANK FOERDERBK 0.500 5/10/2027 CAD 49.90 QIMONDA FINANCE 6.750 3/22/2013 USD 3.10 SOLON AG SOLAR 1.375 12/6/2012 EUR 35.90 WESTHYP 6.375 3/28/2012 EUR 61.40 WURTTEMBERGER HB 6.580 3/14/2022 EUR 13.80 GREECE ------ ATHENS URBAN TRN 4.851 9/19/2016 EUR 70.80 ATHENS URBAN TRN 5.008 7/18/2017 EUR 67.80 HELLENIC RAILWAY 4.500 12/6/2016 JPY 65.20 HELLENIC REP I/L 2.900 7/25/2025 EUR 52.50 HELLENIC REP I/L 2.300 7/25/2030 EUR 50.20 HELLENIC REPUB 5.250 2/1/2016 JPY 74.70 HELLENIC REPUB 5.200 7/17/2034 EUR 63.80 HELLENIC REPUB 6.140 4/14/2028 EUR 71.60 HELLENIC REPUB 5.000 8/22/2016 JPY 67.50 HELLENIC REPUB 5.000 3/11/2019 EUR 69.90 HELLENIC REPUBLI 6.000 7/19/2019 EUR 69.10 HELLENIC REPUBLI 4.600 7/20/2018 EUR 63.70 HELLENIC REPUBLI 4.300 7/20/2017 EUR 64.30 HELLENIC REPUBLI 5.300 3/20/2026 EUR 62.80 HELLENIC REPUBLI 4.600 9/20/2040 EUR 54.60 HELLENIC REPUBLI 4.500 9/20/2037 EUR 54.70 HELLENIC REPUBLI 4.700 3/20/2024 EUR 61.00 HELLENIC REPUBLI 6.250 6/19/2020 EUR 70.70 HELLENIC REPUBLI 3.700 7/20/2015 EUR 69.80 HELLENIC REPUBLI 3.600 7/20/2016 EUR 65.50 HELLENIC REPUBLI 5.900 4/20/2017 EUR 70.30 NATIONAL BK GREE 3.875 10/7/2016 EUR 76.20 IRELAND ------- AIB MORTGAGE BNK 5.580 4/28/2028 EUR 62.60 AIB MORTGAGE BNK 5.000 2/12/2030 EUR 56.30 AIB MORTGAGE BNK 5.000 3/1/2030 EUR 56.30 ALLIED IRISH BKS 10.750 3/29/2017 EUR 53.80 ALLIED IRISH BKS 12.500 6/25/2019 GBP 54.50 ALLIED IRISH BKS 10.750 3/29/2017 USD 55.30 ALLIED IRISH BKS 7.875 7/5/2023 GBP 40.50 ALLIED IRISH BKS 11.500 3/29/2022 GBP 52.90 ALLIED IRISH BKS 12.500 6/25/2019 EUR 55.60 ANGLO IRISH BANK 4.000 4/23/2018 EUR 53.00 BANK OF IRELAND 10.750 6/22/2018 GBP 65.30 BANK OF IRELAND 10.000 2/12/2020 GBP 69.00 BANK OF IRELAND 9.250 9/7/2020 GBP 66.40 BANK OF IRELAND 5.450 3/1/2030 EUR 60.60 BANK OF IRELAND 4.875 1/22/2018 GBP 60.10 BK IRELAND MTGE 5.400 11/6/2029 EUR 60.20 BK IRELAND MTGE 5.760 9/7/2029 EUR 63.40 DEPFA ACS BANK 5.125 3/16/2037 USD 71.70 DEPFA ACS BANK 1.920 5/9/2020 JPY 74.80 DEPFA ACS BANK 0.500 3/3/2025 CAD 33.30 DEPFA ACS BANK 3.250 7/31/2031 CHF 68.30 DEPFA ACS BANK 4.900 8/24/2035 CAD 65.10 DEPFA ACS BANK 5.125 3/16/2037 USD 73.30 HYPO PUBLIC FIN 5.400 3/26/2024 EUR 10.50 IRISH GOVT 5.400 3/13/2025 EUR 76.60 IRISH NATIONWIDE 5.500 1/10/2018 GBP 27.50 IRISH NATIONWIDE 13.000 8/12/2016 GBP 27.40 ITALY ----- CITY OF TURIN 5.270 6/26/2038 EUR 73.40 LUXEMBOURG ---------- ARCELORMITTAL 7.250 4/1/2014 EUR 29.60 IIB LUXEMBOURG 11.000 2/19/2013 USD 15.50 INTL INDUST BANK 9.000 7/6/2011 EUR 17.00 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 47.10 LIGHTHOUSE INTL 8.000 4/30/2014 EUR 46.80 NETHERLANDS ----------- APP INTL FINANCE 11.750 10/1/2005 USD 0.00 ARPENI PR INVEST 8.750 5/3/2013 USD 44.90 ARPENI PR INVEST 8.750 5/3/2013 USD 44.90 ASTANA FINANCE 7.875 6/8/2010 EUR 13.00 BK NED GEMEENTEN 0.500 2/24/2025 CAD 54.40 BRIT INSURANCE 6.625 12/9/2030 GBP 68.10 DGS INTL FIN BV 10.000 6/1/2007 USD 0.00 ELEC DE CAR FIN 8.500 4/10/2018 USD 56.90 INDAH KIAT INTL 12.500 6/15/2006 USD 0.00 IVG FINANCE BV 1.750 3/29/2017 EUR 74.60 NATL INVESTER BK 25.983 5/7/2029 EUR 30.60 NED WATERSCHAPBK 0.500 3/11/2025 CAD 54.40 RBS NV EX-ABN NV 6.316 6/29/2035 EUR 75.50 TJIWI KIMIA FIN 13.250 8/1/2001 USD 0.00 NORWAY ------ EKSPORTFINANS 0.500 5/9/2030 CAD 43.30 KOMMUNALBANKEN 0.500 9/24/2014 BRL 71.00 POLAND ------ REP OF POLAND 2.648 3/29/2034 JPY 66.10 COMBOIOS DE PORT 5.700 2/5/2030 EUR 68.20 PORTUGAL -------- PARPUBLICA 3.567 9/22/2020 EUR 66.70 PORTUGUESE OT'S 4.100 4/15/2037 EUR 69.30 RUSSIA ------ AGROKOM GROUP 10.000 6/21/2011 RUB 75.00 APK ARKADA 17.500 5/23/2012 RUB 0.40 ARKTEL-INVEST 12.000 4/9/2012 RUB 1.00 BANK KEDR 12.800 7/22/2011 RUB 100.00 BANK SOYUZ 7.750 5/2/2011 RUB 75.00 BARENTSEV FINANS 20.000 7/4/2011 RUB 1.10 BASHKIRENERGO 8.300 3/9/2011 RUB 100.00 DVTG-FINANS 17.000 8/29/2013 RUB 9.00 EUROKOMMERZ 16.000 3/15/2011 RUB 0.00 FINANCEBUSINESSG 12.500 6/22/2011 RUB 75.00 GLAVSTROY-FINANS 1.000 3/17/2011 RUB 75.00 GRACE DIAMOND 15.000 6/7/2012 RUB 75.00 IART 12.000 8/4/2013 RUB 6.00 IAZS 11.000 12/8/2010 RUB 2.00 INPROM 9.500 5/18/2011 RUB 65.00 IZHAVTO 18.000 6/9/2011 RUB 11.30 LR-INVEST 13.750 7/17/2012 RUB 75.00 M-INDUSTRIYA 14.250 7/10/2013 RUB 60.00 M-INDUSTRIYA 12.250 8/16/2011 RUB 28.20 MACROMIR-FINANS 7.750 7/3/2012 RUB 0.20 MAIN ROAD OJSC 10.200 6/3/2011 RUB 75.00 MIG-FINANS 0.100 9/6/2011 RUB 2.10 MIRAX 17.000 9/17/2012 RUB 31.00 MIRAX 14.990 5/17/2011 RUB 27.00 MOSKOMMERTSBANK 1.000 6/12/2013 RUB 75.00 MOSMART FINANS 0.010 4/12/2012 RUB 2.00 MOSOBLGAZ 12.000 5/17/2011 RUB 72.50 MOSOBLTRUSTINVES 20.000 3/26/2011 RUB 7.00 MY BANK 10.000 8/7/2012 RUB 75.00 NATIONAL CAPITAL 13.000 9/25/2012 RUB 75.00 NAUKA-SVYAZ 15.000 6/27/2013 RUB 75.00 NEW INVESTMENTS 12.000 7/7/2011 RUB 75.00 NOK 10.000 9/22/2011 RUB 1.00 NOK 12.500 8/26/2014 RUB 1.00 NUTRINVESTHOLDIN 11.000 6/30/2014 RUB 24.20 OJSC FCB 11.000 8/7/2012 RUB 75.00 PROM TECH 16.000 4/25/2011 RUB 75.00 PROMNESTESERVICE 9.500 12/5/2014 RUB 75.00 RAF-LEASING 12.500 2/21/2012 RUB 75.00 RAZGULYAY-FINANS 17.000 3/16/2012 RUB 71.00 RIATO 13.750 6/3/2013 RUB 75.00 ROSSELKHOZBANK 11.500 9/27/2017 RUB 105.10 RYBINSKKABEL 0.010 2/28/2012 RUB 0.00 SAHO 15.000 5/21/2012 RUB 35.00 SATURN 10.000 6/6/2014 RUB 1.00 SEVENTH CONTINE 9.250 6/14/2012 RUB 105.00 SEVKABEL-FINANS 10.500 3/27/2012 RUB 3.40 SIBUR 13.500 3/13/2015 RUB 75.00 SOUTHERN STOCK C 9.000 4/29/2014 RUB 75.00 SVOBODNY SOKOL 18.000 5/24/2011 RUB 40.00 TALIO-PRINCEPS 16.000 5/17/2012 RUB 75.00 TECHNONICOL-FINA 13.500 9/11/2013 RUB 75.00 TECHNONICOL-FINA 13.000 9/19/2013 RUB 75.00 TECHNONICOL-FINA 13.000 9/25/2013 RUB 75.00 TECHNOSILA-INVES 7.000 5/26/2011 RUB 44.00 TERNA-FINANS 1.000 11/4/2011 RUB 3.00 TK FINANS 12.600 9/5/2011 RUB 75.00 TRANSCREDITFACTO 12.000 11/1/2012 RUB 75.00 TRANSNEFT 9.500 10/1/2019 RUB 75.00 TVER VAGONOSTRO 7.000 6/12/2013 RUB 75.00 UNITED HEAVY MAC 13.000 5/31/2013 RUB 75.00 VESTER-FINANS 15.250 8/11/2011 RUB 3.50 VLADPROMBANK 12.000 3/8/2011 RUB 75.00 VMK-FINANCE 16.000 5/21/2014 RUB 75.00 YUGFINSERVICE 15.250 5/20/2014 RUB 75.00 ZHILSOTSIPOTEKA- 9.000 7/26/2011 RUB 75.00 SPAIN ----- AYT CEDULAS CAJA 3.750 6/30/2025 EUR 71.00 BANCAJA 1.500 5/22/2018 EUR 64.00 BANCAJA EMI SA 2.755 5/11/2037 JPY 45.70 BANCO GUIPUZCOAN 1.500 4/18/2022 EUR 67.10 CAJA CASTIL-MAN 1.500 6/23/2021 EUR 55.70 CEDULAS TDA 6 3.875 5/23/2025 EUR 72.60 CEDULAS TDA A-5 4.250 3/28/2027 EUR 74.40 CEDULAS TDA A-6 4.250 4/10/2031 EUR 69.60 GENERAL DE ALQUI 2.750 8/20/2012 EUR 72.80 JUNTA LA MANCHA 3.875 1/31/2036 EUR 72.20 SWEDEN ------ SWEDISH EXP CRED 9.000 8/28/2011 USD 9.60 SWEDISH EXP CRED 0.500 9/29/2015 BRL 64.70 SWEDISH EXP CRED 9.000 8/12/2011 USD 10.20 SWITZERLAND ----------- UBS AG 13.700 5/23/2012 USD 14.30 UBS AG 13.300 5/23/2012 USD 4.20 UBS AG 10.580 6/29/2011 USD 38.20 UBS AG JERSEY 9.350 9/21/2011 USD 64.70 UBS AG JERSEY 11.150 8/31/2011 USD 39.50 UBS AG JERSEY 9.450 9/21/2011 USD 51.30 UBS AG JERSEY 10.280 8/19/2011 USD 35.70 UBS AG JERSEY 10.650 4/29/2011 USD 15.70 UBS AG JERSEY 11.030 4/21/2011 USD 20.50 UBS AG JERSEY 3.220 7/31/2012 EUR 49.50 UBS AG JERSEY 10.820 4/21/2011 USD 21.40 UBS AG JERSEY 16.160 3/31/2011 USD 42.50 UBS AG JERSEY 12.800 2/28/2011 USD 34.10 UBS AG JERSEY 11.000 2/28/2011 USD 70.00 UBS AG JERSEY 15.250 2/11/2011 USD 11.30 UBS AG JERSEY 10.000 2/11/2011 USD 59.90 UBS AG JERSEY 16.170 1/31/2011 USD 12.80 UBS AG JERSEY 14.640 1/31/2011 USD 36.40 UBS AG JERSEY 13.900 1/31/2011 USD 34.30 UBS AG JERSEY 10.360 8/19/2011 USD 53.60 UNITED KINGDOM -------------- BANK OF SCOTLAND 6.984 2/7/2035 EUR 75.30 BARCLAYS BK PLC 9.500 8/31/2012 USD 29.40 BARCLAYS BK PLC 9.250 8/31/2012 USD 34.70 BARCLAYS BK PLC 10.800 7/31/2012 USD 27.50 BARCLAYS BK PLC 9.400 7/31/2012 USD 11.70 BARCLAYS BK PLC 12.950 4/20/2012 USD 24.00 BARCLAYS BK PLC 10.650 1/31/2012 USD 41.50 BARCLAYS BK PLC 10.350 1/23/2012 USD 20.10 BARCLAYS BK PLC 8.800 9/22/2011 USD 16.80 BARCLAYS BK PLC 7.610 6/30/2011 USD 52.30 BARCLAYS BK PLC 13.800 5/27/2011 USD 52.10 BARCLAYS BK PLC 8.550 1/23/2012 USD 11.70 BRADFORD&BIN BLD 5.500 1/15/2018 GBP 45.20 BRADFORD&BIN PLC 6.625 6/16/2023 GBP 43.20 BRADFORD&BIN PLC 7.625 2/16/2049 GBP 48.20 EFG HELLAS PLC 6.010 1/9/2036 EUR 35.50 EFG HELLAS PLC 5.400 11/2/2047 EUR 63.00 ENTERPRISE INNS 6.375 9/26/2031 GBP 74.00 MAX PETROLEUM 6.750 9/8/2012 USD 64.20 NORTHERN ROCK 5.750 2/28/2017 GBP 75.30 PUNCH TAVERNS 7.567 4/15/2026 GBP 69.70 PUNCH TAVERNS 6.468 4/15/2033 GBP 51.60 PUNCH TAVERNS 8.374 7/15/2029 GBP 70.10 ROYAL BK SCOTLND 6.316 6/29/2030 EUR 69.40 RSL COMM PLC 10.125 3/1/2008 USD 1.30 RSL COMM PLC 9.125 3/1/2008 USD 1.30 SKIPTON BUILDING 6.750 5/30/2022 GBP 68.70 SKIPTON BUILDING 5.625 1/18/2018 GBP 72.30 UNIQUE PUB FIN 6.464 3/30/2032 GBP 65.00 WESSEX WATER FIN 1.369 7/31/2057 GBP 32.20 ********* 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 U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Frauline S. Abangan and Peter A. Chapman, Editors. Copyright 2010. 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 * * *