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

                           E U R O P E

          Wednesday, February 23, 2011, Vol. 12, No. 38

                            Headlines



A U S T R I A

ATRIUM EUROPEAN: S&P Affirms 'BB' Long-Term Corp. Credit Rating


B U L G A R I A

MKB UNIONBANK: Moody's Withdraws 'E+' Financial Strength Rating


C Z E C H   R E P U B L I C

SAZKA AS: Prague Court Names Preliminary Insolvency Administrator
SAZKA AS: Repays EUR4 Million Bond Principal


D E N M A R K

AARHUS LOKALBANK: Posts 2010 DKK233MM Loss; At Risk of Bankruptcy
ISS A/S: Moody's Puts 'B2' CFR Under Review for Possible Downgrade
ISS HOLDING: S&P Puts 'BB-' Corp. Ratings on CreditWatch Positive
* Moody's Reviews Ratings on Notes Issued by Five Danish Bank CDOs


G E R M A N Y

ACUMENT GMBH: Ruia Group Acquires Acument Germany
CB MEZZCAP: Moody's Downgrades Rating on Class C Notes to 'C (sf)'
GERRESHEIMER AG: Moody's Upgrades Corporate Family Rating to 'Ba1'


G R E E C E

ALPHA BANK: NBG Expects Positive Investor Feedback for Bid
FAGE DAIRY: S&P Gives Positive Outlook; Affirms 'B-' Rating
T BANK: Fitch Affirms Individual Rating at 'E'


H U N G A R Y

* HUNGARY: Construction Sector Liquidations Down 14.1% in January


I R E L A N D

ANGLO IRISH: Racked Up Advertising Bills Ahead of Wind-Down
ELLEN CONSTRUCTION: Creditors Unlikely to Recover EUR8 Million
IRISH NATIONWIDE: Racked Up Advertising Bills Ahead of Wind-Down
MCINERNEY GROUP: High Court Protection Withdrawn
PHOENIX FUNDING: Moody's Withdraws Ratings on Two Classes of Notes

QUINN INSURANCE: Quinn Family Confident on Development Plan
ZOO HF3: Fitch Affirms 'Csf' Rating on Class E Floating Rate Notes


I T A L Y

SAFILO SPA: Moody's Upgrades Corporate Family Rating to 'B3'


N E T H E R L A N D S

METINVEST BV: Fitch Assigns 'B' Rating to Medium-Term Notes
RHODIUM 1: S&P Downgrades Rating on Class D Notes to 'CCC+'


R U S S I A

ALFA-BANK OJSC: Fitch Assigns 'BB' Rating to Senior Unsec. Bonds
LEADER ZAO: Fitch Affirms Long-Term Issuer Default Rating at 'BB-'
* Moody's Assigns 'Ba2' Rating to Republic of Komi's Bonds


S P A I N

BANCAJA 10: S&P Downgrades Rating on Class D Notes to 'B- (sf)'
BANKINTER 17: Moody's Assigns 'Caa2(sf)' Rating to Class C Notes
BBVA EMPRESAS: Moody's Assigns 'Ba2 (sf)' Rating on Series C Note
ESPANOLA DEL ZINC: Ends Bankruptcy Appeal; Board Steps Down
* SPAIN: To Push Through with Caja Overhaul Despite Complaints


U K R A I N E

* Fitch Assigns 'B' Rating to Ukraine's US$1.5-Bil. Eurobonds


U N I T E D   K I N G D O M

ALBURN: RBS Hits at Credibility Amid Debt Talks
COLONNADE II: S&P Withdraws 'D (sf)' Ratings on Various Notes
EDWARDS GROUP: Moody's Changes Outlook on 'B2' Rating to Stable
LEEDS GOLF: Park Lane Foundation Acquires Firm
LLOYDS BANKING: Incoming CEO to Accelerate Sale of UK Branches

PARS TECHNOLOGY: Taps Rendle & Company as Administrators
PLYMOUTH ARGYLE: Unable to Pay Tax Bill, To Tap Administrators
REYNOLDS GROUP: Moody's Assigns 'Ba3' Rating to Senior Term Loan E
TULLETT PREBON: Fitch Upgrades Senior Unsecured Debt Rating
VERGO RETAIL: Lewis's Name May Return to Liverpool High Street


                            *********


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A U S T R I A
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ATRIUM EUROPEAN: S&P Affirms 'BB' Long-Term Corp. Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'BB'
long-term and 'B' short-term corporate credit ratings on Atrium
European Real Estate Ltd.  At the same time, S&P removed the
ratings from CreditWatch, where they had been placed with negative
implications on Jan. 31, 2011.  The outlook is stable.

"The rating affirmation reflects S&P's greater clarity on Atrium's
strategy for dealing with its ongoing legal dispute with Meinl
bank, as well as S&P's view of the company's stable operating
performance and adequate liquidity," said Standard & Poor's credit
analyst Amra Balic.  "It also reflects S&P's consideration of the
lack of information provided by Atrium on the nonpayment of
interest on its 2008 bond issued to Meinl Bank in the broader
context of the legal dispute with Meinl Bank."

Atrium owns, manages, and develops retail real estate properties
in Central and Eastern Europe.  On Sept. 30, 2010, the market
value of Atrium's portfolio was EUR2.2 billion.  Atrium is
reportedly subject to litigation dating back to its existence as
Meinl European Land.

S&P's assessment of Atrium's business risk profile as fair has not
changed.  Although Atrium has put most development activities on
hold, S&P anticipate that it will continue to invest in new and
existing assets.

S&P assess Atrium's financial risk profile as significant, based
on its credit ratios.  However, in the future, its assessment of
the company's financial risk profile will also depend on the
quality and timeliness of disclosure, S&P's reappraisal of the
company's financial policy, and its view of corporate governance.

In S&P's view, Atrium should continue to exhibit a stable
operating performance and an improved capital structure.  S&P
think that Atrium will likely maintain conservative leverage until
it successfully completes its large development pipeline, and
until its portfolio of standing retail real estate assets begins
to generate a relatively stable stream of rental income.  In
addition, S&P anticipate that the company will likely maintain an
internal liquidity cushion sufficient to meet any unexpected
shortfalls in income or cost overruns in its development projects.

S&P could raise the ratings if S&P sees that Atrium continues to
limit its development activities, cash flow metrics improve, and
market conditions show signs of a substantial and sustainable
recovery.  S&P also intend to evaluate developments in the
company's corporate governance structure and any residual
litigation risk before considering an upgrade.

Alternatively, S&P could lower the ratings if in particular S&P
sees a prolonged market downturn or any material increase in
discretionary spending over the short term, or if unexpected
changes in the capital structure or corporate governance hamper
investors' still-fragile confidence in the company.


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


MKB UNIONBANK: Moody's Withdraws 'E+' Financial Strength Rating
---------------------------------------------------------------
Moody's Investors Service has withdrawn the E+ standalone bank
financial strength rating of MKB Unionbank AD (Bulgaria), mapping
to a Baseline Credit Assessment of B1 and the long-term and short-
term local- and foreign-currency deposit ratings of Ba3/NP.  At
the time of the withdrawals, all these ratings had a stable
outlook.

                        Ratings Rationale

Moody's Investors Service has withdrawn the credit rating for its
own business reasons.

Moody's previous rating action on MKB-UB was implemented on
Jan. 25, 2011, when the BFSR was downgraded by one notch to E+
from D- and the long-term deposit rating to Ba3 from Ba2.

Headquartered in Sofia, Bulgaria, MKB-UB reported unaudited
consolidated total assets of BGN1.606 billion (EUR821 million) at
the end of September 2010.


===========================
C Z E C H   R E P U B L I C
===========================


SAZKA AS: Prague Court Names Preliminary Insolvency Administrator
-----------------------------------------------------------------
CTK reports that the Prague Municipal Court has named Josef Cupka
as preliminary insolvency administrator for Sazka AS.

KKCG SF, Karel Komarek's investment group, has registered a
CZK409 million overdue claim into the insolvency register on
Feb. 10 and filed a proposal for naming a preliminary insolvency
received at the court on Feb. 15, CTK recounts.

The court has rejected the proposal to order an injunction that
Sazka can take all important steps only with the preliminary
administrator's approval and to name a preliminary creditor
committee, CTK relates.

According to CTK, Czech Television on Monday said that Mr. Cupka
would also be the insolvency administrator if Sazka was declared
insolvent.  The court has announced that the date for talks about
the company's insolvency will be unveiled today, CTK notes.

The preliminary administrator's task is adopting measures to asses
the value of the debtor's assets and securing the assets, as well
as checking the debtor's accounting, CTK discloses.  He will then
submit to the court a report on his activities, in particular on
the condition of the assets he has administered, CTK states.

The decision can be appealed within 15 days, CTK says.

                           KKCG Offer

Separately, David Kasl at Czech Position reports that KKCG
presented an offer to counter those of Penta and E-Invest.
According to Czech Position, KKCG said in a press release that the
group is "prepared to immediately provide financial resources
amounting to CZK2.8 billion implemented by raising the company's
basic capital.  The KKCG group would receive a shareholding of
67%."

KKCG also said that it will guarantee the current shareholders an
income of CZK250 million a year from Sazka for the next 15 years,
irrespective of the lottery firm's performance, Czech Position
notes.  The group, Czech Position says, also promises that five
years after restructuring Sazka, it would raise the amount of
earnings transferred to the sports associations by CZK150 million
annually.

"Over 15 years the current shareholders of the company Sazka will
receive a sum reaching CZK11 billion in the form of takings from
income for public causes," Czech Position quotes KKCG as saying.

                      Penta, E-Invest Offer

On Feb. 9, 2011, the Troubled Company Reporter-Europe, citing
Reuters, related that Sazka said it had agreed to take on Penta
Investments and E-Invest as financial partners who would take
operating control of Sazka and a share of future profits but no
equity in the firm.  "We are ready to invest as much as will be
needed to end the insolvency proceedings against Sazka as soon as
possible," Reuters quoted E-Invest chief Martin Ulcak as saying.
"The strategic partnership is for 15 years and there is roughly
over CZK2 billion (US$112.7 million) needed now.  We have the
capacity to cover that."  Penta chief Marek Dospiva said the
investors would provide money to pay off a missed EUR4 million
January payment on the principle of Sazka's 215 million euro bond
CZ025854705= and that the bond would be likely repaid by 2021 as
planned, Reuters disclosed.  Reuters noted that Mr. Dospiva, whose
firm owns a majority stake in betting firm Fortuna, said Fortuna's
plans for its own lottery plan were unaffected and that Penta
would look for synergies with Sazka.

Sazka AS is a provider of lotteries and sport betting games in the
Czech Republic.


SAZKA AS: Repays EUR4 Million Bond Principal
--------------------------------------------
Krystof Chamonikolas at Bloomberg News reports that Sazka AS said
in a statement on its Web site on Monday that the company has
repaid a bond principal of EUR4 million (US$5.5 million).

The company previously missed payments on its debt, Bloomberg
relates.

According to CTK, Sazka spokesman Jan Tuna on Monday said that
"The payment of the principal is one of the steps of strategic
cooperation with the firms E-Invest and Penta."

On Feb. 9, 2011, the Troubled Company Reporter-Europe, citing
Reuters, related that Sazka said it had agreed to take on Penta
Investments and E-Invest as financial partners who would take
operating control of Sazka and a share of future profits but no
equity in the firm.  "We are ready to invest as much as will be
needed to end the insolvency proceedings against Sazka as soon as
possible," Reuters quoted E-Invest chief Martin Ulcak as saying.
"The strategic partnership is for 15 years and there is roughly
over CZK2 billion (US$112.7 million) needed now.  We have the
capacity to cover that."  Penta chief Marek Dospiva said the
investors would provide money to pay off a missed EUR4 million
January payment on the principle of Sazka's 215 million euro bond
CZ025854705= and that the bond would be likely repaid by 2021 as
planned, Reuters disclosed.  Reuters noted that Mr. Dospiva, whose
firm owns a majority stake in betting firm Fortuna, said Fortuna's
plans for its own lottery plan were unaffected and that Penta
would look for synergies with Sazka.

Sazka AS is a provider of lotteries and sport betting games in the
Czech Republic.


=============
D E N M A R K
=============


AARHUS LOKALBANK: Posts 2010 DKK233MM Loss; At Risk of Bankruptcy
-----------------------------------------------------------------
Xinhua reports that Aarhus Lokalbank is struggling to avert
bankruptcy.

The bank's Annual Report 2010 showed that it registered a pre-tax
loss of DKK233 million (around US$42.72 million), Xinhua relates.
The bank is believed to have made substantial losses on
investments in real estate and agriculture, pushing its finances
below the safety limit imposed on banks by the Denmark's Financial
Services Authority, Xinhua discloses.  In 2010, Aarhus Lokalbank
suffered write-downs totaling DKK255 million (US$46.76 million),
and its equity plummeted to DKK136 million (US$24.94 million),
Xinhua says, citing Danish financial news Web site Borsen.dk.

According to Xinhua, Borsen.dk said the bank's auditors have
warned that a state-backed capital rescue plan may be required to
rescue the bank.  The auditors added that the bank faces
substantial risk of financial distress if a capital plan is not
implemented, Xinhua notes.

Xinhua says a potential rescue plan would depend on conversion of
a DKK147 million (US$26.95 million) Danish government loan
provided to the bank, into shares, which are sold to raise equity
for the bank.  This would make the Danish government the majority
shareholder, according to Xinhua.

However, bankruptcy remains a real threat, Xinhua notes.

"The capital plan implementation will strengthen the bank's
capital base," Xinhua quotes Aarhus Lokalbank's management as
saying in the report, "but it can not be excluded that the bank
can run into difficulty, even if the capital plan is implemented
as planned."

The bank management is aware that, if the capital rescue plan does
not work, Aarhus Lokalbank could be put under administration of
the Financial Stability Company, a state-run financial stability
facility for distressed banks, Xinhua states.

Aarhus Lokalbank A/S (the Bank), formerly Hadsten Bank, is a
Denmark-based bank conglomerate consisting of three local banks:
Hadsten Bank, Langaa Bank and Aarhus Lokalbank.  The Bank offers
services relating to accounts, credit cards, savings accounts,
investment services, mortgages and currency exchange services to
private and corporate customers.  It also provides advice and
service to customers in the farming industry.  In addition, the
Bank offers savings accounts and other services for under age
customers.  Aarhus Lokalbank operates an online banking facility,
NetBank.


ISS A/S: Moody's Puts 'B2' CFR Under Review for Possible Downgrade
------------------------------------------------------------------
Moody's Investors Service has placed the B2 corporate family
rating of ISS A/S as well as the Caa1 rating on the senior
subordinated notes due 2016 under review for possible upgrade.
This is prompted by the company's announcement of its contemplated
IPO and refinancing of part of its existing debt.

On Feb. 17, 2011, ISS indicated its intention to raise gross
proceeds of approximately DKK13.3 billion for the company through
the sale of new shares.  If successful, IPO proceeds, together
with amounts drawn under a new facility agreement to be put in
place shortly, are expected to be used to repay around
DKK22.5 billion of existing debt.

Although the terms and conditions of the proposed new facility
remain unknown at this early stage, Moody's understands that the
refinancing of ISS's second lien facility and senior bank
facilities is likely to result in a significant decrease in ISS's
net debt to EBITDA ratio (as calculated by the company) to around
3.5x from 6.0x.

During the review process, Moody's will closely monitor the
company's progress on the contemplated IPO and will assess the
implications of the proposed refinancing on the company's
financial profile, which could result in strong upward pressure
from the current B2 CFR.

ISS also reported its unaudited preliminary results for the full
year 2010.  The company has indicated that its total sales
increased by 7.3% to DKK74.1 billion driven primarily by emerging
markets.  Operating margin also increased to 5.8% from 5.6% the
prior year thanks to above average margins in Asia, positive
developments in Western Europe and tight cost management.

ISS World Services A/S, based in Copenhagen, Denmark, is the fully
owned subsidiary of ISS A/S and one of the leading facility
services providers in the world.


ISS HOLDING: S&P Puts 'BB-' Corp. Ratings on CreditWatch Positive
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
positive implications its 'BB-' long-term corporate credit ratings
on Denmark-based facilities services provider ISS Holding A/S and
related entity ISS Global A/S.

At the same time, the 'B' issue ratings on ISS' EUR581.5 million
subordinated facility (including the add-on notes) due 2016, on
ISS Global's EUR110.5 million issuance under the EUR2 billion
unsecured euro medium-term notes program due 2014, and on ISS
Financing PLC's EUR525 million secured notes due 2014 were placed
on CreditWatch with positive implications.

"The CreditWatch placement follows ISS' announced IPO to raise
additional capital that the group proposes to use to delever the
capital structure," said Standard & Poor's credit analyst
Andrew Stillman.  According to the company's announcement, the
target is to raise approximately DKK13.3 billion in proceeds from
the IPO.

"S&P believes that the cash proceeds from the prospective IPO
could be used to delever ISS' highly leveraged financial risk
profile," added Mr. Stillman.  ISS' Standard & Poor's-adjusted
debt to EBTIDA stood at 7x for the year ended Dec. 31, 2010, while
the adjusted debt to total capital was above 90% for the same
period.  S&P estimates that if the proceeds of the IPO were fully
used to repay debt, pro forma adjusted debt to EBITDA for 2011
would drop to less than 4.5x and 2011 pro forma adjusted funds
from operations to debt would be in the mid teens.  The raised
funds would also, in S&P's view, increase the group's financial
flexibility and help facilitate the refinancing of future debt
maturities.

S&P aim to review the CreditWatch following a successful
completion of the IPO and confirmation from ISS on the final use
of the additional funding.  In addition, S&P will seek to
ascertain from the group's reference shareholders (Goldman Sachs
Capital Partners and EQT) their investment horizon, strategy, and
degree of support for a revised financial policy.

S&P would view any reduction of ISS' heavy debt burden as positive
for the rating.  The magnitude of any potential ratings upside
would depend on S&P's satisfactory assessment of: 1) the group's
likely sustainable future credit metrics; 2) the group's revised
financial policy, together with an assessment of the group's
future shareholder structure; and 3) the group's maintenance of
adequate liquidity.


* Moody's Reviews Ratings on Notes Issued by Five Danish Bank CDOs
------------------------------------------------------------------
Moody's Investors Service has either downgraded or placed under
review for possible downgrade the ratings of nine classes of notes
issued by five CDOs of predominantly Danish subordinated bank
debt.

Issuer: Mare Baltic PCC Limited - Series 2004-1

  -- DKK728.375M (currently DKK152.675M) Class A 3% Limited
     Recourse Secured Senior Notes due 2012 Notes, Downgraded to C
     (sf); previously on Jan 13, 2010 Downgraded to Ca (sf)

Issuer: Mare Baltic PCC Limited - Series 2005-1

  -- EUR201.6M (Currently EUR95.231M) Class A Floating Rate
     Limited Recourse Secured Asset Backed Notes due 2010/2015
     Notes, Downgraded to Ca (sf); previously on Jul 20, 2010
     Downgraded to Caa3 (sf)

Issuer: Mare Baltic 2006-1

  -- EUR170.011M Class A Floating Rate Limited Recourse Secured
     Asset Backed Notes due 2014 Notes, Ba3 (sf) Placed Under
     Review for Possible Downgrade; previously on Jul 20, 2010
     Downgraded to Ba3 (sf)

  -- DKK879.571M Class B 3% Limited Recourse Secured Asset Backed
     Notes due 2011/2014 Notes, Ca (sf) Placed Under Review for
     Possible Downgrade; previously on Jan 13, 2010 Downgraded to
     Ca (sf)

Issuer: ScandiNotes Five p.l.c.

  -- DKK218.1M DKK 218,100,000 Class A Floating Rate Limited
     Recourse Secured Senior Notes due 2015 Notes, Baa3 (sf)
     Placed Under Review for Possible Downgrade; previously on Jul
     20, 2010 Downgraded to Baa3 (sf)

  -- DKK672M DKK 672,000,000 Class B Floating Rate Guaranteed
     Limited Recourse Secured Senior Notes due 2015 Notes,
     Underlying Rating: Caa1 (sf) Placed Under Review for Possible
     Downgrade; previously on Jul 20, 2010 Downgraded to Caa1 (sf)

  -- DKK417.9M DKK 417,900,000 Class C 4% Guaranteed Limited
     Recourse Secured Mezzanine Notes due 2015 Notes, Underlying
     Rating: Caa3 (sf) Placed Under Review for Possible Downgrade;
     previously on Jul 20, 2010 Confirmed at Caa3 (sf)

Issuer: Kalvebod plc - Series 4

  -- EUR82.87568M Series 4 EUR82,875,680 Class A Floating Rate
     Secured Senior Notes due 2015 Notes, B1 (sf) Placed Under
     Review for Possible Downgrade; previously on Jun 22, 2010
     Downgraded to B1 (sf)

  -- DKK463.16412M Series 4 DKK 463,165,120 Class B Fixed/Floating
     Rate Secured Mezzanine Notes due 2015 Notes, Caa3 (sf) Placed
     Under Review for Possible Downgrade; previously on Jun 22,
     2010 Downgraded to Caa3 (sf)

                        Ratings Rationale

The ratings and reviews for downgrade are driven by the recent
announcement by Financial Stability, the Danish government-backed
bank-support vehicle, that, effective Feb. 6, 2011, a newly
created subsidiary of Financial Stability acquired all the assets
and part of the liabilities of Amagerbanken.  The transfer
effectively wipes out the subordinated debt of Amagerbanken that
was included in the pools of the five affected CDOs.  As the pools
are highly non-granular, referencing at most seventeen obligors,
the impact of the default of Amagerbanken is certain to be
significant.  Exposure to Amagerbanken ranged from 9% to a maximum
of 56% of the pools.

Where rating actions were taken, the analysis was based on the
extent to which the notes were likely to suffer losses following
the default of Amagerbanken.  This was effected by comparing the
outstanding pools with the liabilities on the notes to derive
expected losses on the tranches.

Review of the other tranches on watch for downgrade will be
concluded upon completion of more detailed modelling analysis.

The key assumptions Moody's used were these:

1) Recoveries following default of obligors will be zero

2) Some CDO senior tranches may benefit from final swap payments
   due under the terms of the notes that were issued at discount
   at deal closing.

No models were used in the analysis.

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.


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G E R M A N Y
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ACUMENT GMBH: Ruia Group Acquires Acument Germany
-------------------------------------------------
Indo-Asian News Service reports that Ruia Group has acquired
Acument GmbH & Co KG.  This is the third acquisition for the Ruia
Group -- the owner of Dunlop India and Falcon Tyres -- in Germany
and their fourth in Europe, in a span of three years.

The news agency relates that the Ruia Group emerged as the best
bidder and signed the contract for the acquisition of Acument,
which has a 15% market share in the fastener segment in Europe and
had posted a turnover of EUR800 million, before insolvency.

Ruia Group has acquired four plants of Acument in Neuss,
Beckingen, Neuwied and Schorzberg, as well as its logistic centre
in Koln in Germany, according to Indo-Asian News Service.

As reported in Troubled Company Reporter-Europe on Aug. 11, 2009,
Acument Global Technologies, Inc. said it advised management to
initiate insolvency plan proceedings according to the German
Insolvency Code for its business in Germany, Acument GmbH & Co.
OHG, headquartered in Neuss.

Acument Germany has filed for a self-administered, pre-packaged
restructuring plan (similar to a U.S. chapter 11 filing) under the
supervision of the Insolvency Court in Duesseldorf, Germany, and a
Preliminary Insolvency Administrator.

The Insolvency Court has appointed Dr. Wolf von der Fecht to serve
as Preliminary Insolvency Administrator.  Acument Germany has
retained insolvency expert Carsten Koch of Leonhardt Westhelle &
Partner as its chief restructuring officer.

Acument Germany's insolvency is the result of a substantial and
steep decline in automotive production in Germany over
the past year.  The company is a leading supplier of fastening
technology to the German automotive industry.

Included in Acument Germany's insolvency proceeding are its
production sites in Beckingen, Duerbheim, Neuss, Neuwied,
and Schrozberg, Germany, as well as a distribution center in
Cologne, which combined employ more than 1,700 people.
Acument's other global operations --  including the Avdel(R)
facility in Langenhagen, Germany --  are not affected by the
insolvency proceeding.

Acument Germany's insolvency filing followed comprehensive
discussions between the company, its principal German
customers and its joint works councils regarding potential
strategic alternatives, including restructuring options outside
the court system.

             About Acument Global Technologies, Inc.

Headquartered in Neuss, Germany,  Acument GmbH & Co. OHG is a unit
of Acument Global Technologies, Inc., -- http://www.acument.com/
-- a supplier of mechanical fastening technology based in Troy,
Michigan, USA.


CB MEZZCAP: Moody's Downgrades Rating on Class C Notes to 'C (sf)'
------------------------------------------------------------------
Moody's Investors Service has downgraded its ratings of two
classes of notes issued by CB Mezzcap Limited Partnership.

  -- EUR137.8M A Notes, Downgraded to B3 (sf); previously on Jul
     22, 2009 Downgraded to Ba2 (sf)

  -- EUR10.5M C Notes, Downgraded to C (sf); previously on Jul 22,
     2009 Downgraded to Ca (sf)

                        Ratings Rationale

CB Mezzcap is a German SME CLO referencing a static portfolio of
German profit participations.  The scheduled maturity falls in
January 2013.  Some of the 'Genussrechte' obligations in the
portfolio have certain features of equity (type A obligations).
These include potential deferral of interest and principal
payments subject to financial performance of the obligor.  Such
obligations can also be written down and may extend redemption
beyond the legal final maturity of the transaction (October 2036).
These obligations make up 57% of the performing pool.  Type A
obligations which have not redeemed par plus accrued interest by
the legal maturity of the CDO transaction will expire and lead to
a loss for CB MezzCap Limited Partnership.

According to Moody's, the rating actions are driven by further
defaults in the pool at a higher rate than expected at last rating
action and the application of Moody's revised approach to
modelling type A obligations.

Moody's has taken into account EUR27 million of defaults since the
last rating action (July 2009), of which EUR15 million have
occurred in the last quarter.  The outstanding pool considered as
performing by Moody's was EUR121.5 million, providing an
overcollateralization level for the class A of only 110.6%.  All
classes of notes junior to class B should suffer high losses given
that there are not enough performing assets available to cover
these liabilities.  Furthermore, one additional asset in the pool
with a notional size of EUR7.5 million was considered by Moody's
as likely to default based on the information contained in the
latest investor report dated 25 January 2011.

The principal deficiency ledger measures the potential shortfall
of underlying assets available to cover the outstanding
liabilities of the CDO.  The PDL in CB MezzCap has increased since
last rating action from EUR31.8 million to EUR50.1 million.  This
higher PDL results directly from new defaults in the underlying
pool.  The PDL was partially paid down using EUR2.5 million of
asset recoveries and EUR0.26 million of available excess spread.
Following principal payments available to cure the PDL, class A
outstanding amount decreased to EUR109.9 million from EUR115.6
million as of the last rating action.

Moody's has analyzed that the transaction benefits from a limited
level of excess spread which is not sufficient to mitigate by the
scheduled maturity the defaults experienced in the pool.

Moody's has changed its approach to stressing type A obligations.
At closing, Moody's modelled the risk of such assets using a
ratings migration approach.  This approach consisted in assessing
the likelihood that debtors would default on or defer fixed
interest and/or principal payments based on ratings migration as a
proxy to companies' performance.  In order to improve modelling
accuracy and consistency with other types of CDO modelling,
Moody's now relies on a standard simulation based model including
a haircut to the coupons of Genussrechte assets and extends their
expected lives while applying a loss severity linked to the
current rating of each obligor.

Moody's also notes that the collateral pool consists entirely of
debt obligations issued by obligors whose credit quality has been
assessed through Moody's KMV RiskCalc model.  This model produces
expected default frequencies which are mapped to Moody's
alphanumeric rating scale.

In its base case, Moody's analyzed the underlying collateral pool
with a stressed weighted average default probability of 21.6%.
The horizon of this DP extends to the scheduled maturity (January
2013).  This is consistent with the DP level of a Caa1 rating.
Moody's arrived at this pool rating level by stressing individual
obligors on the basis of qualitative information provided in the
investor report and by including the implementation of stresses
applicable to concentrated pools with non publicly rated issuers,
as outlined in Moody's methodology report "Updated approach to the
usage of credit estimates in rated transactions" (October 2009).
Moody's notes that this weighted average default probability is
consistent with the high historic default rate observed to date.

Moody's also considered various additional scenarios, including
the jump to default scenario described in the report.  This
scenario had an impact of slightly over half a notch on the model
output of class A.

The key assumptions Moody's used were these:

1) Default rates for these pools will likely remain at elevated
   levels, despite improvements in the German economy.

2) Recoveries on the subordinated loans may be close to zero in
   the majority of cases, particularly when the issuer files for
   insolvency.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, as evidenced by 1) uncertainties of
credit conditions in the general economy and 2) the concerns
surrounding the ability of the underlying obligors to refinance
the subordinated bullet loans that make up the securitized pool.

Sources of additional performance uncertainties include:

1) Low portfolio granularity: the performance of the portfolio
   depends to a large extent on the credit conditions of a few
   large obligors that are rated non investment grade.  This is
   especially true in scenarios where these obligors jump to
   default.  Due to the pool's lack of granularity, Moody's
   supplements its base case scenario with individual scenario
   analyses.

2) The additional risk presented by the interest deferral and
   principal write-down features for some of the assets in the
   pool.

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.


GERRESHEIMER AG: Moody's Upgrades Corporate Family Rating to 'Ba1'
------------------------------------------------------------------
Moody's Investors Service has upgraded Gerresheimer AG's corporate
family rating to Ba1 from Ba2.  Concurrently, the rating agency
has upgraded to Ba2 (Loss Given Default assessment of LGD6 -- 90%)
from B1 (LGD6 -- 91%) the rating on the senior subordinated notes
issued by Gerresheimer Holdings GmbH, a subsidiary of Gerresheimer
AG.  The outlook on the ratings is stable.

                        Ratings Rationale

"The upgrade reflects Gerresheimer's further progress in improving
its credit metrics in 2010, as evidenced by strengthened leverage
ratios, including a debt/EBITDA ratio of 2.8x on a Moody's
adjusted basis," says Rainer Neidnig, a Moody's Assistant Vice
President and lead analyst for Gerresheimer.  "Given
Gerresheimer's resilient operating and financial performance
during the recession which has evidenced a limited exposure to the
economic cycle, Moody's considers that leverage ratios at levels
of 3x debt/EBITDA adequately position the rating in the Ba1
category," adds Mr. Neidnig.

Moreover, the rating incorporates Gerresheimer's balanced
financial policy, as evidenced by the group's decision to
temporarily suspend dividend payments during the financial crisis
and to abstain from M&A activity in recent years.  Although
management is again exploring selective acquisitions in order to
generate further profitable growth, Moody's does not expect that
the group's leverage ratios will materially weaken on a prolonged
basis as a result of potential M&A activity.

Gerresheimer reported results for the fiscal year ended
November 2010 on Feb. 10, 2011.  The group's sales increased
moderately to EUR1.02 billion, from EUR1.0 billion in 2009, which
represents organic revenue growth of 4.0% on a comparable basis
and at constant foreign exchange rates.  Gerresheimer's
profitability recovered to pre-crisis levels after a moderate
decline in 2009.  Moreover, the group reported positive free cash
flow of EUR84 million, which allowed it to further reduce its
debt.  Against this backdrop, leverage decreased to 2.8x, from
3.4x in 2009.

Moody's notes that Gerresheimer's FCF in 2010 was supported by the
temporary suspension of dividends and a slight decline in capital
expenditures.  However, the rating agency expects the group to
remain FCF positive, despite its announced resumption of dividend
payments and a moderate increase in capital expenditures.

The upgrade to Ba2 from B1 of Gerresheimer's EUR126 million worth
of senior subordinated notes is in line with Moody's Loss Given
Default Methodology and driven primarily by the upgrade of the
group's CFR.

Gerresheimer's ratings are based on: (i) the group's current
profitability levels; (ii) a debt/EBITDA ratio of around 3.0x; and
(iii) the group's ability to generate positive FCF.  Positive
rating pressure could build up if Gerresheimer were able further
grow the business profitably and further reduce leverage ratios,
including achieving a debt/EBITDA ratio of 2.5x on a sustainable
basis.  However, an upgrade to Baa3 would also require further
evidence of a balanced financial policy on a long term basis or a
commitment by management to achieve ratios that are in line with
investment-grade levels.

Moody's could consider downgrading Gerresheimer if the group's
profitability were to come under pressure, resulting in negative
FCF and its debt/EBITDA ratio weakening to 3.5x or higher.
Smaller bolt-on acquisitions are incorporated into the rating.
However, negative rating pressure could also build if Gerresheimer
were to engage in larger transactions and fail to return to a
debt/EBITDA ratio of 3.0x in the intermediate term.

Moody's previous rating action on Gerresheimer was implemented on
April 22, 2010, when the rating agency (i) affirmed the company's
Ba2 corporate family rating and B1 rating on the EUR126 million
worth of senior subordinated bond issued by Gerresheimer Holdings
GmbH; and (ii) changed the outlook on the ratings to positive from
stable.

Upgrades:

Issuer: Gerresheimer AG

  -- Probability of Default Rating, Upgraded to Ba1 from Ba2
  -- Corporate Family Rating, Upgraded to Ba1 from Ba2

Issuer: Gerresheimer Holdings GmbH

  -- Senior Subordinated Regular Bond/Debenture, Upgraded to Ba2,
     LGD6, 90% from B1, LGD6, 91%

  -- Senior Subordinated Regular Bond/Debenture, Upgraded to Ba2,
     LGD6, 90% from B1, LGD6, 91%

Outlook Actions:

Issuer: Gerresheimer AG

  -- Outlook, Changed To Stable From Positive

Issuer: Gerresheimer Holdings GmbH

  -- Outlook, Changed To Stable From Positive

Headquartered in Duesseldorf, Germany, Gerresheimer AG is the
parent company of the Gerresheimer group, a leading producer of
specialty glass and plastic packaging solutions primarily for the
pharmaceutical and life science industry.  The group's revenues in
the fiscal year ending November 2010 amounted to EUR1.02 billion.
The group currently employs approximately 9,500 staff and operates
40 production facilities in Europe, America and Asia.
Gerresheimer AG is publicly listed and 100% of its shares are in
free float.


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


ALPHA BANK: NBG Expects Positive Investor Feedback for Bid
----------------------------------------------------------
Maria Petrakis and Natalie Weeks at Bloomberg News report that
National Bank of Greece SA, the nation's largest lender, said its
EUR2.8 billion (US$3.8 billion) bid for Alpha Bank SA, the third-
biggest, will be received positively by investors after Alpha
spurned the offer.

"The strategic and financial merits of the combination are
compelling to both banks and their respective shareholders,"
Bloomberg quotes Chief Executive Officer Apostolos Tamvakakis as
saying on a conference on Monday.  "We are confident that the
market will receive this proposal positively and express its
position accordingly."

Bloomberg relates that Alpha's board voted unanimously Feb. 18 to
spurn National Bank's offer of about EUR5.50 in shares.  The bid
values Alpha at about half its book value, a lower multiple than
in the previous four European bank takeovers in Europe of more
than US$1 billion in the past year, data compiled by Bloomberg
show.

According to Bloomberg, Mr. Tamvakakis told investors the bank was
"surprised" at Alpha's rejection of the offer following two weeks
of talks.

"Our proposal was always meant to be and remains friendly,"
Mr. Tamvakakis, as cited by Bloomberg, said.

Alpha Bank A.E. (the Bank) is a banking and financial services
company in Greece, offering a range of services, including retail,
small and medium-sized enterprise (SME) and corporate banking,
credit cards, asset management, investment banking, private
banking, brokerage, leasing and factoring.  The Company offers
corporate and retail banking, financial services, investment
banking and brokerage services, insurance services, real estate
management and hotel activities.  It operates under the brand name
of ALPHA BANK.  The Bank has six business segments: Retail
Banking, Corporate Banking, Asset Management and Insurance,
Investment Banking and Treasury, South Eastern Europe, and Other.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 28,
2010, Fitch Ratings placed Alpha Bank's 'BB+' subordinated notes
rating, 'B+' junior subordinated debt rating and 'B+' hybrid
capital rating on rating watch negative.  The bank's 'D'
individual rating was unaffected.


FAGE DAIRY: S&P Gives Positive Outlook; Affirms 'B-' Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised its
outlook on Greek dairy processor Fage Dairy Industry S.A. to
positive from stable.  At the same time, Standard & Poor's
affirmed its 'B-' long-term corporate credit on the company.

"The outlook revision reflects S&P's view of the solid performance
of Fage's U.S. operations, which has more than offset the impact
of competitive pressure in the company's domestic market, and, in
its opinion, will continue to do so," said Standard & Poor's
credit analyst Florence Devevey.

For the 12 months ended Sept. 30, 2010, leverage remained high, as
demonstrated through a Standard & Poor's-adjusted debt-to-EBITDA
ratio of 6x, up from 5.2x for full-year 2009.  This was due to the
company's debt issuance at the beginning of 2010, the proceeds of
which it used to repay existing debt and finance investments.  In
2011, S&P believes that leverage will likely decline to below 5x,
and that the company will return to positive--though modest--FOCF
generation.  This improvement will, in S&P's opinion, result from
a better operating performance on the back of favorable economic
prospects and strong demand for Mediterranean products in the
U.S., and a stabilization of the Greek dairy market.

The rating on Fage continues to reflect S&P's view of the
company's "highly leveraged" financial risk profile, constrained
by an aggressive financial policy, high indebtedness, and a track
record of poor FOCF generation.  S&P assesses Fage's business
profile as "weak," owing to the company's narrow product and brand
portfolio, and the Greek dairy market's small size and high
competition.  These factors are partially mitigated by S&P's view
of Fage's leading, but weakened, position in its domestic market,
and its improving position in the U.S. Greek yogurt market.

The positive outlook reflects S&P's belief that Fage should
materially improve its credit metrics in the next 12-18 months, on
the back of a return to positive FOCF generation in 2011 and
continued solid sales and EBITDA performance in the U.S.

"S&P believes that achieving and maintaining a ratio of adjusted
EBITDA to interest of at least 2.5x could be consistent with a
higher rating," said Ms. Devevey.

S&P could revise the outlook back to stable or lower the rating if
Fage failed to maintain what S&P considers to be an "adequate"
liquidity position, which for Fage, S&P Defines as adjusted EBITDA
interest coverage of 1.5x-2.0x and full coverage of short-term
maturities by unrestricted cash, FOCF, and availability under
committed bank lines.


T BANK: Fitch Affirms Individual Rating at 'E'
----------------------------------------------
Fitch Ratings has maintained T Bank S.A.'s 'B-' Long-term Issuer
Default Rating on Rating Watch Evolving.  The agency has also
maintained T Bank's 'B' Short-term IDR on RWN and affirmed its
remaining ratings at Individual Rating 'E', Support Rating '5' and
Support Rating Floor 'No Floor'.

The maintained RWE reflects the agency's opinion that T Bank is
likely to be downgraded if capital is not significantly
strengthened in the short term.  However, the bank is currently
exploring capital restoring alternatives, which could ultimately
lead to upward rating potential.  Fitch will resolve the RWE once
details of T Bank's plans to strengthen capital and its major
shareholder, TT Hellenic Postbank S.A.'s (unrated), involvement in
the bank become available.  At end-Q310, Postbank held 32.9% of T
Bank.

T Bank continued to be loss-making in Q310, largely as a result of
subdued revenue generation and notably still high loan impairment
charges (2.29bp of gross loans in Q310) due to still weakening
asset quality.  As a result, T Bank's capital ratios have been
eroded, with a reported Tier 1 capital ratio less than 6.5%, as
publicly stated by the bank.  Assuming an unchanged loss rate for
Q410, T Bank would be in breach of the regulatory capital ratio at
end-2010, indicating an urgent need for additional capital.

In Fitch's opinion, T Bank's standalone funding and liquidity
position is severely strained.  This is evidenced by the declining
customer deposit base, considerable utilization of ECB funding and
lack of further ECB-eligible unencumbered assets.  However, the
fact that Postbank has provided liquidity to T Bank when needed
and its involvement as a major shareholder, coupled with T Bank's
new branding, has helped it to contain deposit outflows.

T Bank is an Athens-based small retail/SME bank with roots as a
specialized mortgage bank.  Postbank, established in 1900 as part
of the Hellenic Post office, is the seventh-largest Greek bank by
assets at end-Q310 and focused on retail banking.  It has a
nationwide network of 147 branches, supported by around 844 post
offices distributing Postbank products.  As of end-Q310, the Greek
state held 34.04% of Postbank's shares, with the Greek Post Office
owning 10%, domestic institutional investors 22.2%, foreign
institutional investors 7.8% and the balance being held by private
investors.

The rating actions are:

T Bank S.A.:

  -- Long-term IDR 'B-'; RWE maintained
  -- Short-term IDR: 'B'; RWN maintained
  -- Individual Rating: affirmed at 'E'
  -- Support Rating: affirmed at '5'
  -- Support Rating Floor: affirmed at 'No Floor'
  -- Lower tier 2 notes: affirmed at 'CCC'/ 'RR6'
  -- Tier 1 hybrid notes: affirmed at 'CC'/ 'RR6'


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


* HUNGARY: Construction Sector Liquidations Down 14.1% in January
-----------------------------------------------------------------
MTI-Econews, citing Opten, reports that creditors and suppliers
launched liquidation procedures against 270 Hungarian construction
industry companies in January, down 14.1% from the same month a
year earlier.

According to MTI, the number of voluntary liquidations came to 200
in January, up 68% from the same month a year earlier.


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


ANGLO IRISH: Racked Up Advertising Bills Ahead of Wind-Down
-----------------------------------------------------------
Laura Noonan at Irish Independent reports that Anglo Irish Bank
and Irish Nationwide spent almost EUR1 million on advertising last
year -- in the period immediately before their wind-down was
announced.

The ad spend is revealed in new figures compiled for the Irish
Independent using data from media monitor Nielsen, Irish
Independent discloses.

According to Irish Independent, despite its far smaller size,
Irish Nationwide was the bigger spender in the year, booking ads
with a rate card value of just under EUR480,000.  The data also
shows that Irish Nationwide continued spending right up until
November, when EUR121,000 was spent on ads, even though the wind-
down of Nationwide had been on the cards from early September.

"Until there was a definite sale process announced, Irish
Nationwide continued to manage and promote its business as normal
in order to keep its deposit and loan books in the best possible
condition for a new owner," Irish Independent quotes a spokeswoman
for the agency as saying on Monday.

Anglo Irish Bank, meanwhile, racked up advertising with a rate
card value of just over EUR450,000 last year, but did not spend
any money between August and December, Irish Independent relates.

The ad money stopped flowing more than a month before the
September revelations that Anglo's plan to split itself into a
'good' bank and a 'bad' bank had gotten the thumbs down from
Brussels, Irish Independent states.

As reported by the Troubled Company Reporter-Europe on Feb. 10,
2011, BBC News that the National Treasury Management Agency, as
cited by BBC News, said it would start an auction process for the
sale of the deposits and assets of Anglo Irish Bank and Irish
Nationwide Building Society.  The government submitted
restructuring plans for the two state-run lenders to the European
Commission, BBC disclosed.  They also include the merger of Anglo
Irish and Irish Nationwide, according to BBC.  The Irish High
Court gave clearance to those plans, BBC noted.

Anglo Irish Bank Corp PLC -- http://www.angloirishbank.com/--
operates in three core areas: business lending, treasury and
private banking.  The Bank's non-retail business is made up of
more than 11,000 commercial depositors spanning commercial
entities, charities, public sector bodies, pension funds, credit
unions and other non-bank financial institutions.  The Company's
retail deposits comprise demand, notice and fixed term deposit
accounts from personal savers with maturities of up to two years.
Non-retail deposits are sourced from commercial entities,
charities, public sector bodies, pension funds, credit unions and
other non-bank financial institutions.  In addition, at Sept. 30,
2008, its non-retail deposits included deposits from Irish
Life Assurance plc.  The Private Bank offers tailored products and
solutions for high net worth clients and operates the Bank's
lending business in Ireland and the United Kingdom.

                        *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 1,
2010, DBRS downgraded the ratings of the Euro Dated Subordinated
Notes (specifically the EUR325.2 million Floating Rate
Subordinated Notes due 2014, EUR500 million Callable Subordinated
Floating Rate Notes due 2016 and the EUR750 million Dated
Subordinated Floating Rate Notes due 2017) (collectively referred
to as the 2017 Notes) issued by Anglo Irish Bank Corporation
Limited (Anglo Irish or the Bank) to 'D' from 'C'.  DBRS said the
downgrade follows the execution of the Bank's note exchange offer.
The default status for the exchanged and now-extinguished 2017
Notes reflects DBRS's view that bondholders were offered limited
options, which, as discussed in DBRS' press release dated
October 25, 2010, is considered a default per DBRS policy.

On Oct. 29, 2010, the Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services lowered its rating on
Anglo Irish Bank Corp. Ltd.'s non-deferrable dated subordinated
debt (lower Tier 2) securities to 'D' from 'CCC'.  The downgrade
of the lower Tier 2 debt rating reflects S&P's opinion that the
bank's exchange offer is a "distressed exchange" and tantamount to
default in accordance with its criteria.


ELLEN CONSTRUCTION: Creditors Unlikely to Recover EUR8 Million
--------------------------------------------------------------
Barry O'Halloran at Irish Times reports that unsecured creditors
are unlikely to recover any of the EUR8 million owed to them by
Ellen Construction, which is currently being wound up and whose
main assets are in receivership.

Ellen Construction became one of a number of high-profile
casualties of the building slump when its banks placed it in
receivership in 2009 with a deficit of EUR46.7 million and debts
of EUR86 million, according to Irish Times.  The report relates
that a final statement of affairs for Ellen, which was completed
recently, shows it still owes almost EUR8 million to unsecured
creditors, a group that largely consists of suppliers, sub
contractors and service providers.

The statement, Irish Times discloses, shows there are no assets
left that can be used to cover this debt, and as a result, these
creditors are unlikely to recover anything.

Ellen Construction owes over EUR978,000 to preferential creditors,
who are entitled to collect before those with unsecured status,
the report says.

Irish Times notes that there is also a provision of EUR177,000 to
cover an amount due under a floating charge, along with receivers'
fees and costs.  The remaining assets in the company are valued at
EUR1.1 million, the report relates.

Irish Times says a recent meeting of the company's creditors
appointed Flavien Murphy, principal of Dublin specialist firm,
Irish Liquidations, as liquidator to the company.

Two receivers, Martin Ferris of Ferris and Associates and Kieran
Wallace of KPMG, took over various assets on behalf of secured
creditors who were owed a total of EUR77.5 million in Nov. 2009,
Irish Times discloses.

The report says that Ulster Bank appointed Mr. Wallace, who is
responsible mainly for a development at Island Key in Dublin.  The
report relates that AIB appointed Mr. Ferris, who is responsible
for a series of assets in Waterford and the southeast.

The receivers are managing these properties on the banks' behalf
and are attempting to clear the company's debts by selling the
homes and apartments in the various developments, the report adds.

The Dorans founded Ellen Construction in 1995 as demand for
residential and commercial property in the Republic was growing.
The company grew as the market expanded in the 1990s and boomed in
the following decade.  At the height of the construction and
property bubble, it employed about 400 people and would have
provided work for many more sub contractors and suppliers.


IRISH NATIONWIDE: Racked Up Advertising Bills Ahead of Wind-Down
----------------------------------------------------------------
Laura Noonan at Irish Independent reports that Anglo Irish Bank
and Irish Nationwide spent almost EUR1 million on advertising last
year -- in the period immediately before their wind-down was
announced.

The ad spend is revealed in new figures compiled for the Irish
Independent using data from media monitor Nielsen, Irish
Independent discloses.

According to Irish Independent, despite its far smaller size,
Irish Nationwide was the bigger spender in the year, booking ads
with a rate card value of just under EUR480,000.  The data also
shows that Irish Nationwide continued spending right up until
November, when EUR121,000 was spent on ads, even though the wind-
down of Nationwide had been on the cards from early September.

"Until there was a definite sale process announced, Irish
Nationwide continued to manage and promote its business as normal
in order to keep its deposit and loan books in the best possible
condition for a new owner," Irish Independent quotes a spokeswoman
for the agency as saying on Monday.

Anglo Irish Bank, meanwhile, racked up advertising with a rate
card value of just over EUR450,000 last year, but did not spend
any money between August and December, Irish Independent relates.

The ad money stopped flowing more than a month before the
September revelations that Anglo's plan to split itself into a
'good' bank and a 'bad' bank had gotten the thumbs down from
Brussels, Irish Independent states.

As reported by the Troubled Company Reporter-Europe on Feb. 10,
2011, BBC News that the National Treasury Management Agency, as
cited by BBC News, said it would start an auction process for the
sale of the deposits and assets of Anglo Irish Bank and Irish
Nationwide Building Society.  The government submitted
restructuring plans for the two state-run lenders to the European
Commission, BBC disclosed.  They also include the merger of Anglo
Irish and Irish Nationwide, according to BBC.  The Irish High
Court gave clearance to those plans, BBC noted.

Irish Nationwide Building Society, headquartered in Dublin, had
total assets of EUR14.4 billion at year-end 2008.

                           *     *     *

Irish Nationwide Building society continues to carry Moody's
Investors Service's 'E' bank financial strength rating and 'C'
subordinated debt rating with negative outlook.

Irish Nationwide also carries Fitch's 'E' bank financial strength
rating and 'C' subordinated debt rating.  The individual rating
was upgraded from 'F' in September 2010.  Fitch said the
upgrade of INBS's Individual Rating to 'E' recognized the
government's injection of EUR2.7 billion capital into the society,
but also acknowledged that the society was still likely to require
further external support.


MCINERNEY GROUP: High Court Protection Withdrawn
------------------------------------------------
Barry Roche at The Irish Times reports that the High Court has
withdrawn its protection from building group McInerney with effect
from 2:30 p.m. on Friday after Mr. Justice Frank Clarke confirmed
his refusal of a proposed rescue plan for the company.

A rescue plan had been drawn up for the group, which was placed
into examinership and put under the protection of the High Court
last September, involving US private equity fund Oaktree Capital,
which had made an offer of EUR25 million in full settlement of the
EUR113 million owed to Belgian bank KBC, Bank of Ireland and Anglo
Irish Bank, The Irish Times recounts.

The Irish Times relates that Mr. Justice Clarke last Thursday
delivered a reserved judgment in which he ruled that the rescue
plan was unfairly prejudicial to KBC.  He adjourned finalizing the
order until Monday to allow for submissions, The Irish Times
notes.  According to The Irish Times, the court heard on Monday
that Oaktree Capital wrote to the examiner, Bill O'Riordan of
PricewaterhouseCoopers, at the weekend, increasing its offer by
EUR6.6 million from EUR25 million to EUR31.6 million.

Mr. Justice Clarke, as cited by The Irish Times, said Oaktree's
proposal to increase its offer was an abuse of process as it was
done after Thursday's judgment.

"It would be fundamentally inconsistent with basic principles of
law to allow the matter to be now reopened.  It is now too late.
If it was to be put on the table it should have been put on the
table before now," The Irish Times quoted Mr. Justice Clarke as
saying.

Rossa Fanning, who is representing the bank syndicate, applied to
have Ciaran Wallace and Padraig Monaghan of KPMG appointed as
joint receivers for the company and he asked the court to make an
order with immediate effect whereby the McInerney companies would
no longer be under the protection of the court, The Irish Times
discloses.

John Hennessy SC, who is representing McInerney, asked for a short
stay of a few days to allow him to take further instructions from
his clients as to whether they wished to appeal the ruling to the
Supreme Court, The Irish Times notes.

According to The Irish Times, Mr. Justice Clarke said he would
grant such a stay, albeit with some reluctance, and he deferred
his order removing the companies from the protection of the court
until Friday at 2:30 p.m.

                          About McInerney

McInerney Holdings plc -- http://www.mcinerneyholdings.eu/-- is a
home builder and regional home builder in the North and Midlands
of England.  It also undertakes commercial and leisure projects in
Ireland, United Kingdom and Spain.  It operates in Ireland, the
United Kingdom and Spain.  The main trading activities of the
Company's Irish home building business during the year ended
December 31, 2008, consisted of construction of private houses,
trading in developed sites and land, development of residential
land for third-parties and in joint-ventures, and contracting for
third-parties.  The Company's commercial property development
division, Hillview Developments Ltd (Hillview), develops
industrial units in the Greater Dublin area.  Hillview completed
1,223 square meters of industrial units as of December 31, 2008.
Its Spanish division, Alanda Group, is developing freehold
apartment schemes.  As of December 31, 2008, the Company completed
1,359 private and contracting residential units in Ireland, the
United Kingdom and Spain.


PHOENIX FUNDING: Moody's Withdraws Ratings on Two Classes of Notes
------------------------------------------------------------------
Moody's Investors Service has withdrawn these ratings issued by
Phoenix Funding 2 Limited and Phoenix Funding 3 Limited:

Issuer: Pheonix Funding 2 Limited

  -- EUR375M B Notes, Withdrawn (sf); previously on Dec 2, 2010 B1
     (sf) Placed Under Review for Possible Downgrade

Issuer: Phoenix funding 3 Limited

  -- EUR160M B Notes, Withdrawn (sf); previously on Dec 2, 2010
     Ba2 (sf) Placed Under Review for Possible Downgrade

Moody's Investors Service has withdrawn the credit rating for its
own business reasons.


QUINN INSURANCE: Quinn Family Confident on Development Plan
-----------------------------------------------------------
Geoff Percival at Irish Examiner reports that Quinn family
representatives are confident that their development plan for
Quinn Insurance will win out against a rival joint Anglo Irish
Bank/Liberty Mutual bid, under the new government.

"We feel we do have a strong chance that our proposition could be
considered after the change in Government and we feel that we will
prevail," Irish Examiner quotes a source close to the Quinn family
as saying on Monday.

Irish Examiner notes that while it is understood that the
shortlist for Quinn Insurance consisted of the Anglo/Liberty
consortium and Zurich Insurance, a proposition from the Quinn
family is a third possibility.

According to Irish Examiner, although the administrators at Quinn
Insurance recently denied that any family proposal had been sent
to them and that no such proposal had the support of Anglo Irish
Bank -- which is owed EUR2.8 billion by the Quinn family -- the
third option seems a viable alternative.

Irish Times says the family is proposing that all profits
generated by Quinn Insurance over the next seven years would go
directly towards paying off the Anglo Irish/taxpayer debt, along
with proceeds from a planned sale or public flotation of the
insurance provider.  The family would also put an independent
board -- comprising experienced business people from Ireland and
Britain -- in direct charge of Quinn Insurance and is claiming
that their option is the only one of the three which would
safeguard against any further jobs losses across the business,
Irish Times discloses.

As reported by the Troubled Company Reporter-Europe on Feb. 22,
2011, Quinn's administrators, as cited by Bloomberg, said in an
e-mail to staff that the company's sale has been delayed by
Ireland's general election.  "We have completed our work, but
there are a number of matters that need to be finalized by other
parties before a decision on the sale can be announced," Bloomberg
quoted the administrators as saying.

As reported by the Troubled Company Reporter-Europe on Feb. 10,
2011, Irish Independent said that Anglo's bid involves the bank
taking over Quinn in a joint venture with US insurance giant
Liberty Mutual, who would stump up a "significant" portion of the
EUR600 million investment.  Their bid is believed to be one of the
last two or three under consideration by Quinn's administrators
and their advisers Macquarie, Irish Independent disclosed.  Anglo
believes that taking over Quinn is the best way to secure
repayment of a EUR2.8 billion debt pile owed by the family of
company founder Sean Quinn and his family, Irish Independent
noted.

                      About Quinn Insurance

Quinn Insurance is owned by Sean Quinn, Ireland's richest man, and
his family.  The company has more than 20% of the motor and health
insurance market in Ireland.  Employing almost 2,800 people in
Britain and Ireland, it was founded in 1996 and entered the UK
market in 2004.

As reported by the Troubled Company Reporter-Europe, The Irish
Times said the Financial Regulator put Quinn Insurance into
administration in March 2010 after his office discovered
guarantees had been provided by the insurer's subsidiaries as far
back as 2005 on Quinn Group debts of more than EUR1.2 billion.
The regulator said the guarantees reduced the amount the firm had
in reserve to protect policyholders against possible claims,
putting 1.3 million customers at risk, according to The Irish
Times.


ZOO HF3: Fitch Affirms 'Csf' Rating on Class E Floating Rate Notes
---------------------------------------------------------
Fitch Ratings has taken these rating actions on floating rate
notes issued by Zoo HF3 Plc, a limited liability company
incorporated in Ireland that invests in a portfolio of hedge fund
assets and is managed by P&G SGR S.p.A.:

-- EUR17,737,294 Class A senior floating rate notes due 2016
    upgraded to 'Asf' from 'BBBsf'; Outlook Stable;

-- EUR8,604,932 Class B mezzanine deferrable floating rate notes
    due 2016 affirmed at 'BBsf'; Outlook Stable;

-- EUR7,088,252 Class C mezzanine deferrable floating rate notes
    due 2016 affirmed at 'CCCsf';

-- EUR14,026,918 Class D mezzanine deferrable floating rate
    notes due 2016 affirmed at 'CCsf';

-- EUR6,726,712 Class E mezzanine deferrable floating rate notes
    due 2016 affirmed at 'Csf'.

The rating actions follow Fitch's annual review of Zoo, and are
based on the asset coverage provided to the floating rate notes by
Zoo's underlying portfolio of hedge fund investments and the
capabilities of P&G as investment adviser.  Fitch's rating on
Class A notes addresses timely repayment of interest and ultimate
repayment of principal on or before final maturity in accordance
with the governing documents.  Fitch's ratings on all other
classes of notes address ultimate repayment of interest and
principal on or before final maturity in accordance with the
governing documents.  Fitch's ratings do not address potential
liquidity in the secondary market.

Zoo triggered a mandatory redemption event in October 2008, by
breaching and failing to cure several of its portfolio tests
following significant net asset value declines of its hedge fund
assets.  The breach did not constitute an event of default per the
governing documents but required P&G to form and carry out a
liquidation plan, which requires the liquidation of Zoo's
underlying portfolio on or before the scheduled maturity date, at
P&G's discretion.  The liquidation plan is updated and provided to
investors on a monthly basis.  Since 2008, the liquidation plan
has been modified significantly due to changing market conditions
and changed exit dates of its hedge fund assets.  Fitch notes that
to date, P&G has executed redemptions at a slower pace relative to
the redemption capacity offered by the hedge fund assets, which
may serve to preserve the diversified nature of the portfolio so
as to mitigate adverse selection for the junior note classes.

Zoo's portfolio experienced less price declines and less
volatility during the 2008-2009 market dislocation in comparison
to other similar Fitch-rated structures and the HFRX EUR Global
Hedge Fund Index (HFRX Index), which Fitch's views as a reasonable
proxy index for Zoo's underlying portfolio.

Fitch's ratings methodology for Zoo is based on published criteria
for market value structures, including closed-end funds.
Specifically, Fitch applied various market value stress scenarios
to Zoo's current NAV levels as well as assuming a stressed
liquidity profile.  The initial NAV shock is based on fourth-
quarter 2008 loss levels for the fund and the HFRX Index, which
Fitch deemed to be a 'BBB' stress event for Zoo's portfolio of
hedge fund holdings.  Fitch scaled this base case loss through the
rating scale using the multiples derived from its published market
value criteria report.  Additionally, certain scenarios assumed
that the portfolio's liquidity/redemption profile was pushed out
an additional six months as the majority of the funds in the
portfolio imposed restrictions on redemptions.  At each liquidity
period, additional NAV stresses were applied with these serial
stresses derived from the top six historical losses observed
historically, going back to 1998.

The upgrade of the Class A notes to 'Asf' from 'BBBsf' reflects
the de-leveraging of the structure and the stable performance
of the portfolio in 2009 and 2010.  As of Feb 17, 2011, the
notes had an outstanding balance of EUR17.7 million, down from
EUR94.5 million at issuance.  This compares with a NAV of
EUR39.8 million for Zoo's portfolio of hedge fund holdings, which
results in 2.2 times coverage based on current NAV.  Based on
P&G's estimates, the Class A notes could be redeemed in full by
Aug. 14, 2012 given the current market environment and redemption
profile of the portfolio.

The Class B notes have benefited from stable performance of the
portfolio, but are much more exposed to market value declines in
the Zoo's portfolio given their subordination to the Class A
notes.  As such the 'BBsf' rating reflects the risk of full or
partial loss in the event of increased NAV stress, particularly as
the note balance continues to increase as interest payments are
deferred.

The rating for the Class C notes reflects Fitch's expectation that
the notes face a material level of default risk.  The tranche is
not expected to receive cash flows for approximately two more
years due to the long redemption timeline of the portfolio.
Further, any repayment on the notes will depend on the remaining
portfolio, which is likely to be concentrated and dependent on
less liquid assets.

The Class D notes have insufficient coverage at current NAV levels
and it appears probable that the class will suffer some level of
losses by the legal final date of the transaction.  For this
reason, the rating is affirmed at 'CCsf'.

Class E is affirmed at 'Csf' due to the expectation that this
class will see no cash flows going forward and a default appears
inevitable.

P&G is an Italian asset management company with registered office
in Rome, Italy.  P&G's professionals have been involved in the
management of hedge funds and EURopean asset-backed security
portfolios since 2001.  As of Dec. 31, 2010, total firm assets
under management were approximately EUR1 billion, of which
EUR100 million were in hedge funds.

The ratings may be sensitive to material changes in the liquidity
and market risk profiles of the fund investments.  Specifically,
further deterioration in the market value, reduced liquidity, or
increased risk associated with the hedge fund assets could result
in a further downgrade of the notes.  Conversely, material
improvement in the market value, increased liquidity and reduced
risk profiles could result in an upgrade of the notes.  A material
adverse deviation from Fitch guidelines for any key rating driver
could cause the rating to be lowered by Fitch.  For additional
information about Fitch market
value structure ratings guidelines, please review the criteria
referenced below, which can be found on Fitch's Web site.

Fitch does not maintain Recovery Ratings for distressed or
defaulted tranches of market value structures.  This is based on
the fact that RRs are derived based on a present value of future
cash flows, while market value structures are subject to
acceleration/liquidation triggers which may invalidate such a cash
flow analysis.


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


SAFILO SPA: Moody's Upgrades Corporate Family Rating to 'B3'
------------------------------------------------------------
Moody's Investors Service has upgraded Safilo's corporate family
rating and probability of default rating to B3 from Caa1.  At the
same time, the senior unsecured rating on the outstanding
EUR195 million notes due 2013 (EUR185 million after the buyback
operated by Safilo towards the end of 2010) was upgraded to Caa2
from Caa3.  The outlook on the ratings is stable.

                        Ratings Rationale

"The upgrade of Safilo's ratings reflect the improvement in the
group's operating performance during the first nine months of FYE
December 2010, a degree of recovery in market conditions and the
expectation that key credit metrics will continue to support the
rating going forward", says Paolo Leschiutta, a Moody's Vice
President-Senior Analyst and lead analyst for Safilo.

During the nine months to Sept. 30, 2010, Safilo reported revenues
of EUR818.2 million and EBITDA of EUR82.5 million, up 5.6% and
50%, respectively, compared to the same period in 2009 (excluding
non-recurring items).  According to Moody's, this result was due
to a combination of improved operating efficiency, thanks to
increased utilization of production capacity, and recovery in
consumer demand, in particular for sunglasses.

As a result of this and thanks to a significant reduction in
financial debt, Safilo's credit metrics have improved
significantly.  The debt reduction followed the capital
restructuring and the capital injection of approximately EUR270
million in early 2010 -- the proceeds of which were mainly
utilized to pay down debt.  In particular, financial leverage,
measured as Debt to EBITDA (adjusted for operating leases and
pension liabilities, and excluding restructuring costs), stood at
ca.  4.3x on an LTM basis as at September 2010.  Moody's would
expect Safilo to maintain a financial leverage around 5x and a
retained cash flow (RCF) to net debt around 10% over the short-
term, with further upside potential over the medium term.

In addition to Safilo's improved credit metrics, Moody's also
recognizes the strengthening liquidity profile of the group.  As
at September 2010, Safilo had available EUR83.6 million of cash on
balance sheet and, following the capital restructuring and
subsequent renegotiation of key terms of the main bank facilities
in early 2010, has a EUR200 million revolving credit facility
expiring in June 2015 which is currently not utilized.  These
facilities and the cash on balance sheet are deemed sufficient to
cover approximately EUR55 million of short-term debt as at
September 2010 (most of which represented by factoring lines which
are expected to be renewed), and capital investments expected
around EUR30 million going forward (investments were
EUR18.7 million during the nine months to September 2010).
Furthermore, Moody's would expect the company to generate positive
free cash flow for the FYE 2010.  Moody's notes that the
renegotiated bank facility (including the revolver mentioned
above, and the EUR100 million facility expiring in 2012 and 2014)
contains some financial covenants, which, however, will not be
tested until June 2012, and Moody's would expect the company to
maintain adequate headroom at all times.

Moody's notes, however, that despite a general recovery in market
conditions, particularly in consumer spending, consumer sentiment
remains weak with significant regional variations.  Therefore, in
light of the ongoing difficulties at the sovereign level in
selected countries, Moody's would expect the recovery to remain
volatile over the short to medium term.  Nevertheless, the stable
outlook on Safilo's ratings reflects Moody's expectation that the
company's key credit metrics will support the existing ratings and
will gradually improve over time, thus further strengthening the
company's position within its rating category.  The stable outlook
also assumes that Safilo will maintain an adequate liquidity
profile and a conservative financial policy going forward.

On the one hand, positive pressure could be exerted on Safilo's
ratings if the company improves its operating performance
demonstrated by an improving EBITA margin towards high single
digit, Debt to EBITDA around 4.5x and an RCF to net debt above
10%.  An upgrade would also reflect a conservative financial
policy and a strong liquidity profile (in consideration also of
the EUR75 million term loan maturing in June 2012).  On the other
hand, Safilo's ratings would come under negative pressure in the
event of deteriorating operating performance signalled by an EBITA
margin dropping below 5% or Debt to EBITDA staying above 6x.  The
ratings could also be downgraded in case of a deterioration in the
company's liquidity profile or a negative change in Moody's
perception of market conditions.

The ratings upgraded are:

Issuer: Safilo S.p.A.

  -- Probability of Default Rating, Upgraded to B3 from Caa1
  -- Corporate Family Rating, Upgraded to B3 from Caa1

Issuer: Safilo Capital International SA

  -- Senior Unsecured Regular Bond, Upgraded to Caa2, LGD5, 83%
     from Caa3, LGD5, 85%

The last rating action on Safilo was on March 9, 2010, when
Moody's upgraded the company's CFR and PDR to Caa1, respectively
from Caa2 and Caa3.  At that time, the rating agency also changed
the outlook on the ratings to positive from stable, thereby
concluding the rating review for possible upgrade that had been
initiated on Dec. 10, 2009.

Headquartered in Padua, Italy, Safilo is the world leader in the
premium eyewear sector, offering a strong portfolio of both owned
and licensed brands.  The group sells sunglasses, prescription
glasses and sport-specific eyewear in over 130 countries.  As at
FYE December 2009, revenues stood slightly above EUR1 billion and,
for the nine months to September 2010, the company reported
revenues of around EUR818 million.


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


METINVEST BV: Fitch Assigns 'B' Rating to Medium-Term Notes
-----------------------------------------------------------
Fitch Ratings has assigned METINVEST B.V.'s US$750 million 2018
medium-term guaranteed notes a final senior unsecured rating of
'B' and Recovery Rating of 'RR4'.

Assignment of the final ratings follows a review of final
documentation materially conforming to the draft documentation
previously reviewed.  The final rating is in line with Metinvest's
Long-term foreign currency Issuer Default Rating of 'B'.


RHODIUM 1: S&P Downgrades Rating on Class D Notes to 'CCC+'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Rhodium 1 B.V.'s class B, C, and D notes.  At the same time, S&P
affirmed and removed from CreditWatch negative the rating on the
class A notes.

The rating actions follow S&P's assessment of developments in the
transaction's underlying portfolio as well as the application of
its updated counterparty criteria.  In S&P's opinion, the ratings
are not constrained by its updated counterparty criteria.

Although the balance of assets that S&P considers as defaulted in
its analysis has remained unchanged (one asset position, amounting
to EUR5 million) since its last rating action on Jan. 21, 2010,
S&P note that credit deterioration has occurred within the
investment-grade category (assets rated between 'AAA' and 'BBB-')
and the speculative-grade category ('BB+' and below).  Overall,
the proportion of speculative-grade assets is about 31% of the
portfolio balance.

In S&P's view, credit deterioration has led to a decline in the
overcollateralization ratio test results when compared with its
last review.  As of the latest available trustee report of
December 2010, the class A, B, and C overcollateralization ratio
test result currently stands at 113.86%, while the class D
overcollateralization ratio test is breaching its trigger level
with a reported result of about 99%.  S&P note that according to
the terms and conditions of the notes, a drop in the class A, B,
and C overcollateralization ratio test result to or below 100%
would trigger an event of default.

Since the completion of the ramp-up period in November 2004, the
portfolio is defensively managed and varies only due to asset
repayments and/or the sale of credit-impaired or defaulted assets.
On each payment date, the issuer uses available principal proceeds
to repay the notes starting with class A, followed by classes B,
C, and D.  According to the latest available trustee report, the
class A remaining outstanding principal amount is about 12.4% of
its initial balance.  Overall, the amortization of the class A
notes has led to an increase in the credit enhancement available
to all rated classes of notes.

S&P has affirmed the rating on the class A notes, as in its
opinion there is sufficient credit enhancement available at the
existing rating level for the current rating to be maintained.  In
addition, S&P considers that under its updated counterparty
criteria, the account bank's rating and the transaction
documentation together support a maximum potential rating on the
class A notes at the 'AAA' level.  The transaction has no
derivative counterparties.

As the assets amortize, it is increasingly likely that portfolio
concentration will become more pronounced.  According to S&P's
analysis, there are 31 assets remaining in the portfolio.  The
portfolio consists of European prime residential mortgage-backed
securities (about 55%), asset-backed securities of consumer assets
(about 21%), and corporate collateralized debt obligations
including small and midsize enterprise CDOs (about 20%).  Exposure
to U.K. and Dutch assets together comprises about 68.5% of the
portfolio.  The assets are either mezzanine or junior tranches of
securitizations.  In addition, according to S&P's analysis the
nine largest obligors account for about half of the asset balance.
Increased portfolio concentration together with the above
described credit deterioration has, in S&P's view, led to an
increase in scenario default rates.

As a result of these developments, the ratings previously assigned
to the class B, C, and D notes are, in S&P's view, no longer
commensurate with the available credit enhancement.  S&P has
therefore lowered its ratings on these notes.

                           Ratings List

                          Rhodium 1 B.V.
        EUR304.4 Million Asset-Backed Floating-Rate Notes

      Rating Affirmed and Removed From Creditwatch Negative

                             Rating
                             ------
         Class       To                 From
         -----       --                 ----
         A           AAA (sf)           AAA (sf)/Watch Neg

                         Ratings Lowered

                                 Rating
                                 ------
             Class       To                 From
             -----       --                 ----
             B           AA- (sf)           AA (sf)
             C           BBB- (sf)          BBB (sf)
             D           CCC+ (sf)          B- (sf)


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


ALFA-BANK OJSC: Fitch Assigns 'BB' Rating to Senior Unsec. Bonds
----------------------------------------------------------------
Fitch Ratings has assigned OJSC Alfa-Bank's 8.25% five-year
RUB5 billion issue of senior unsecured bonds, due 2 February 2016
a final Long-term local currency rating of 'BB' and National Long-
term rating of 'AA-(rus)'.  The bonds have a put option after
three years.

OJSC Alfa-Bank is the largest privately-owned bank in Russia by
assets, although its market shares are modest, reflecting the
fragmented nature of the sector.  The group is ultimately owned by
six individuals, with the largest stakes held by Mikhail Fridman
(36.47%) and German Khan (23.27%).


LEADER ZAO: Fitch Affirms Long-Term Issuer Default Rating at 'BB-'
------------------------------------------------------------------
Fitch Ratings has affirmed Russia-based asset management company
ZAO Leader's Long-term Issuer Default Rating at 'BB-' with a
Stable Outlook and Short-term IDR at 'B'.

The affirmation reflects Leader's mostly monoline business of
pension fund management; the high reliance on one large customer,
a Gazprom ('BBB'/Stable) related pension fund NPF Gazfund; and the
risks inherent in its strategy of large-scale infrastructure
project management.

The ratings also consider Leader's zero leverage; currently solid
capital position; majority ownership by Insurance Company of Gas
Industry SOGAZ (Insurer Financial Strength rating 'BB+'/Stable),
one of the country's largest insurance groups, implying the
potential for support should the need arise, and guaranteed fee
income from Gazfund.

Despite some diversification of Leader's business, Gazfund remains
its main customer, making up almost 85% of Leader's funds under
management (FUM).  It is also a major earnings contributor,
accounting for 88% of Leader's total fee income in 2009.  The
strong relationship between Leader and Gazfund is derived from
Leader's previous majority ownership by Gazfund (currently it owns
19.9% of Leader).  The fee structure has a guaranteed component,
significantly protecting Leader's profitability.

Leader's overall risk profile is moderate, with most risks
stemming mainly from proprietary trading, as most investment-
driven risks are borne by investors.  In 2010, market risk
increased, driven by investments in infrastructure projects and
Leader's acquisition of a 15% equity stake in a large media
advertising company (35% of Leader's equity).  Fitch notes that
the infrastructure management strategy may entail additional
risks, especially if debt is used to finance the warehousing of
assets before their transfer to client portfolios.  However, the
company has informed Fitch that infrastructure companies' debt
will be borne directly by investors.

Upside potential for Leader's ratings is presently limited.
Negative pressure could arise from a significant increase in
leverage, markedly reduced capitalization or a significant
weakening of the relationship between Leader and Gazfund and/or
Sogaz.

Leader is the largest asset management company in Russia with
total FUM of RUB322 billion at end-H110.  Sogaz, has a 75% + 1
share in Leader.  Sogaz and Leader are both parts of a group of
companies owned by St.  Petersburg-based Bank Rossiya (Long-term
IDR 'B'/Stable).


* Moody's Assigns 'Ba2' Rating to Republic of Komi's Bonds
----------------------------------------------------------
Moody's Investors Service has assigned a Ba2 global scale local
currency rating to the Republic of Komi's (Ba2, stable) rouble-
denominated bond issuance (KOM-012/00485) totaling RUB2.1 billion
and due 2014.  The proceeds will be used to fund Komi's expected
financing needs in 2011 and to strengthen its liquidity position.
At the same time, Moody's Interfax Rating Agency has assigned
Aa2.ru national scale ratings to the bond.  Moscow-based Moody's
Interfax is majority owned by Moody's Investors Service, a leading
global rating agency.

                        Ratings Rationale

Komi's ratings are based on Komi's low debt and interest costs,
its conservative budget management, as well as its relatively
resilient local economy, which has good prospects for further
development.  The ratings are also supported by the region's
fairly good liquidity position compared with that of its Russian
peers.  These factors are partially offset by the region's rather
weak operating balances and its considerable exposure to taxpayers
from the oil and gas industry.  Moreover, Moody's notes that the
Republic of Komi's ratings are constrained by some expenditure
rigidity, which is common for Russian regions.

The last rating action was implemented on Dec. 11, 2008, when
Moody's Interfax assigned a Aa2.ru national scale issuer rating to
the Republic of Komi.


=========
S P A I N
=========


BANCAJA 10: S&P Downgrades Rating on Class D Notes to 'B- (sf)'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Bancaja 10 Fondo de Titulizacion de Activos' class A2, A3, B, C,
and D notes.  At the same time, S&P kept the class A2 and A3 notes
on CreditWatch negative due to the implementation of S&P's new
counterparty criteria that became effective on Jan. 18, 2011.  S&P
also removed classes B, C, and D from CreditWatch negative, and
affirmed its 'D (sf)' rating on the class E notes.

S&P has observed persisting deterioration in the credit quality of
the underlying portfolio backing Bancaja 10.  The number of loans
in arrears for 90 days, but not yet considered as defaulted
(defined as 18 months in arrears in this transaction), has grown
more slowly in the past six months.  However, the level of
defaulted loans has increased, to 2.74% on a cumulative basis,
over the original portfolio balance securitized at closing.
Although this level of defaults did not breach the interest-
deferral trigger for the class D notes, S&P sees this increase as
weakening the performance of the notes outstanding in this
transaction.  In addition, the level of defaults in the
transaction is still higher than many similar rated transactions
in the market.

As of the latest investor report of November 2010, defaulted loans
represented 2.74% of the original pool balance, compared with
1.09% at the same time the previous year.

The transaction structure has an interest-deferral trigger system,
based on cumulative defaults.  Interest on the notes is deferred
if loans in default comprise more than 10.9% of the initial
balance of the mortgages for class B, 7.4% for class C, and 5.7%
for class D.  Given that the current level of cumulative defaults
over the original balance is 2.74%, while the level of defaults
has increased since the last interest payment date, S&P considers
that interest on junior classes of notes will not be postponed in
the near future.

The reserve fund has been fully drawn since the May 2010 interest
payment date.  S&P believes this may soon adversely affect the
whole transaction structure.  Also, credit enhancement for the
notes has decreased following the downgrade of the class E notes
to 'D (sf)' in July 2010, which negatively affects the capital
structure.

The ratings on the class A notes remain on CreditWatch negative
due to the implementation of S&P's new counterparty criteria.

The Bancaja deals are Spanish residential mortgage-backed
securities transactions backed by pools of first-ranking mortgages
secured over owner-occupied residential properties in Spain.
Bancaja (Caja de Ahorros de Valencia, Castellon y Alicante)
originated the mortgage loans.

                           Ratings List

           Bancaja 10, Fondo de Titulizacion de Activos
       EUR2.631 Billion Mortgage-Backed Floating-Rate Notes

         Ratings Lowered and Kept on Creditwatch Negative

                            Rating
                            ------
                   To                       From
                   --                       ----
      A2           AA (sf)/Watch Neg        AAA (sf)/Watch Neg
      A3           AA (sf)/Watch Neg        AAA (sf)/Watch Neg

      Ratings Lowered and Removed From Creditwatch Negative

                            Rating
                            ------
                   To                       From
                   --                       ----
      B            BBB- (sf)                A (sf)/Watch Neg
      C            BB- (sf)                 BBB- (sf)/Watch Neg
      D            B- (sf)                  BB- (sf)/Watch Neg

                         Rating Affirmed

                       Class        Rating
                       -----        ------
                       E            D (sf)


BANKINTER 17: Moody's Assigns 'Caa2(sf)' Rating to Class C Notes
---------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to the
notes issued by Bankinter 17 FTA:

  -- Aa1(sf) to the EUR952,500,000 Class A notes, due 2051
  -- Ba1(sf) to the EUR34,000,000 Class B notes, due 2051
  -- Caa2(sf) to the EUR13,500,000 Class C notes, due 2051

                        Ratings Rationale

The ratings of the notes take into account (i) the credit quality
of the underlying mortgage loan pool, from which Moody's
determined the MILAN Aaa Credit Enhancement and the portfolio
expected loss; (ii) the transaction structure; and (iii) any legal
considerations.

The expected portfolio loss of 1.5% and the MILAN Aaa required
Credit Enhancement of 6.4% served as input parameters for Moody's
cash flow model, which is based on a probabilistic lognormal
distribution as described in the report "The Lognormal Method
Applied to ABS Analysis", published in September 2000.

The key drivers for the MILAN Aaa Credit Enhancement number, which
is lower than MILAN Aaa Credit Enhancement in other Spanish RMBS
transactions, are (i) the weighted-average current LTV ratio
(based on valuation at origination) of 53.5%; (ii) only 5.2% of
the pool has a current LTV above 80%; and (iii) the relatively
long weighted-average seasoning of 4.3 years.

The key drivers for the portfolio expected loss are (i) the strong
performance shown by Bankinter's previous securitization funds,
compared with the Spanish market average; (ii) the lower severity
of low loan-to-value loans; and (iii) the weaker economic
conditions in Spain.  The assumed expected loss corresponds to an
assumption of an approximate 4% cumulative default rate in the
portfolio (assuming that recoveries are realized with a lag, after
the default).  Given the historical performance shown by
Bankinter's deals, Moody's believes the assumed expected loss is
appropriate for this transaction.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes.  In Moody's opinion, the
structure allows for timely payment of interest and principal with
respect of the Classes A and B notes by the legal final maturity,
and for ultimate payment of interest and principal with respect to
the Class C notes, by the final legal final maturity.  Moody's
ratings only address the credit risk associated with the
transaction.  Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.

The notes are backed by a pool of prime Spanish mortgages granted
to individuals by Bankinter (A1 on review for possible downgrade,
Prime-1).  The properties are mainly residential (94.7%), with the
remaining portion representing commercial properties.

The transaction closed in June 2008 and was initially not rated by
Moody's.  The initial notes balance issued at closing (shown above
next to the assigned rating) was EUR1.0 billion.  The outstanding
notes' balance as of the last payment date in January 2011 was
EUR812.1 million.

Moody's rating analysis of the notes and assets is based on the
transaction structure after the last payment date in January 2011.
The next payment date will occur in April 2011.

The Reserve Fund was initially funded at 2.3% of the total notes
outstanding and may start to amortize after June 2011 to 4.6% of
the outstanding balance of the notes, subject to performance
conditions.  It currently represents 2.58% of the outstanding
notes, being funded at 91% of its target amount.  The total credit
enhancement for the Class A notes is 8.43%, as of January 2011.

The V Score for this transaction is Medium, which is in line with
the V score assigned for the Spanish RMBS sector.  Only one
subcomponent of the V Score deviates from the average for the
sector: the Originator's Historical Performance Variability is
Low/Medium, which is lower than a score of Medium for the Spanish
RMBS sector, reflecting that Bankinter shows better performance
and lower volatility than the market index.  V-Scores are a
relative assessment of the quality of available credit information
and of the degree of dependence on various assumptions used in
determining the rating.  High variability in key assumptions could
expose a rating to more likelihood of rating changes.  The V-Score
has been assigned accordingly to the report "V Scores and
Parameter Sensitivities in the Major EMEA RMBS Sectors", published
in April 2009.

Moody's Parameter Sensitivities: At the time the ratings were
assigned, the model output indicated that Class A notes would have
maintained Aa1, with the same expected loss as in the base case
(1.5%), assuming MILAN Aaa CE as high at 7.1% and all other
factors being constant.  Class B would have maintained Ba1 for the
same scenario.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.  The
analysis assumes that the deal has not aged and is not intended to
measure how the rating of the security might migrate over time,
but rather how the initial rating of the security might have
differed if key rating input parameters varied.  Parameter
Sensitivities for the typical EMEA RMBS transaction are calculated
by stressing key variable inputs in Moody's primary rating model.

Moody's Investors Service did not receive or take into account a
third party due diligence report on the underlying assets or
financial instruments in this transaction.


BBVA EMPRESAS: Moody's Assigns 'Ba2 (sf)' Rating on Series C Note
-----------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to three
series of Notes issued by BBVA EMPRESAS 3, FTA:

  -- EUR2,210M Series A Note, Assigned Aaa (sf)
  -- EUR260M Series B Note, Assigned A1 (sf)
  -- EUR130M Series C Note, Assigned Ba2 (sf)

                        Ratings Rationale

BBVA EMPRESAS 3 is a securitization of loans granted to corporate
and small- and medium-sized enterprise by BBVA (Aa2/P-1).  BBVA is
acting as Servicer of the loans while Europea de Titulizacion
S.G.F.T., S.A. is the Management Company.

The transaction closed in December 2009 and was initially not
rated by Moody's.  The initial notes balance issued at closing
(shown above next to the assigned rating) amounted to EUR2,600
million.  The outstanding notes balance as of the last payment
date in December 2010 amounts to EUR1,968.9 million.

Moody's rating analysis of the notes has taken into consideration
the transaction structure after the last payment date in
December 2010.  The next payment date will take place in March
2011.

The pool of underlying assets was, as of September 2010, composed
of a portfolio of 15,695 contracts granted to obligors located in
Spain.  The loans were originated between 2001 and 2009, with a
weighted average seasoning of 1.7 years and a weighted average
remaining term of 5.6 years.  Around 40% of the outstanding of the
portfolio is secured by first-lien mortgage guarantees over
different types of properties.  Geographically, the pool is
concentrated mostly in in Catalonia (19.1%), Madrid (15.9%) and
Valencia (15.0%).

According to Moody's, this deal benefits from several credit
strengths, such as a high portfolio granularity (Effective Number
of Obligors over 1,000), a relatively short WAL (3 years) and
simple structure that Moody's took into consideration in its
analysis.  However, Moody's notes that the transaction features a
number of credit weaknesses, including a high concentration in the
Building and Real Estate sector (around 36.5% in the pool
according to Moody's industry classification) and a relatively
high percentage of loans more than 30 days in arrears (7.5%).
These characteristics were reflected in Moody's analysis and
ratings, where several simulations tested the available credit
enhancement and reserve fund to cover potential shortfalls in
interest or principal envisioned in the transaction structure.

Moody's Investors Service received and took into account a third
party due diligence report on the underlying assets or financial
instruments in this transaction and the due diligence report had a
neutral impact on the rating.

Moody's analysis focused primarily on (i) an evaluation of the
underlying portfolio of loans; (ii) historical performance
information and other statistical information; (iii) the credit
enhancement provided by the swap spread, the cash reserve and the
subordination of the notes.

The resulting key assumptions of Moody's analysis for this
transaction are a mean default rate of 18.2% with a coefficient of
variation of 40% and a stochastic mean recovery rate of 50%.

As mentioned in the methodology, Moody's used ABSROM cash-flow
model to determine the potential loss incurred by the notes under
each loss scenario.  In parallel, Moody's also considered non-
modelled risks (such as counterparty risk).

The ratings address the expected loss posed to investors by the
legal final maturity of the notes (December 2038).  In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal on Series A, B and C at par on or
before the rated final legal maturity date.  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.

The V Score for this transaction is Medium/High, which is in line
with the score assigned for the Spanish SME sector and
representative of the volatility and uncertainty in the Spanish
SME sector.  V-Scores are a relative assessment of the quality of
available credit information and of the degree of dependence on
various assumptions used in determining the rating.  For more
information, the V-Score has been assigned accordingly to the
report" V Scores and Parameter Sensitivities in the EMEA Small-to-
Medium Enterprise ABS Sector" published in June 2009.

Moody's also ran sensitivities around key parameters for the rated
notes.  For instance, if the assumed default probability of 18.2%
used in determining the initial rating was changed to 22.2% and
the recovery rate of 50% was changed to 40%, the model-indicated
rating for the Series A Notes would change from Aaa to A1.


ESPANOLA DEL ZINC: Ends Bankruptcy Appeal; Board Steps Down
-----------------------------------------------------------
Ben Sills at Bloomberg News reports that Espanola del Zinc SA
ended an appeal against bankruptcy proceedings after the investor
who planned to take over the company withdrew a funding proposal,
the company said in a stock market filing.

According to Bloomberg, the company's board resigned and will
cease to work for Espanola de Zinc when the process of liquidation
starts.

Espanola del Zinc SA is a Spain-based company principally engaged
in mining operations and the production and commercialization of
zinc, iron ore and steel.


* SPAIN: To Push Through with Caja Overhaul Despite Complaints
--------------------------------------------------------------
Christopher Bjork and Sara Schaefer Nunoz at The Wall Street
Journal report that despite complaints from Spain's ailing savings
banks that reform efforts are moving too swiftly, the Spanish
government is standing firm in its push to quickly convert the
local institutions into traditional banks.

According to the Journal, the government's new solvency decree
will firm up a set of ambitious overhauls announced by Spanish
Finance Minister Elena Salgado last month.   The Journal says the
new rules will likely result in the end of the savings banks,
known as cajas, whose archaic business structures are mistrusted
by investors.  The decree will establish a time frame for the
restructuring of ailing financial institutions in need of fresh
capital and define how much cash they will need to raise if they
want to prevent partial nationalization, the Journal states.

The report says the cajas are furiously preparing stock-market
listings and sounding out private investors ahead of a government-
set September deadline, in an attempt to avoid last-resort
measures, such as capital injections from taxpayers.

The Journal relates that senior caja executives complain that the
September deadline may imperil listings, and could increase the
number of partial nationalizations, because it would leave just a
small window to sell shares before the summer holidays.  The
Journal notes that people familiar with the content of the decree
said the government isn't bending much in the face of such
complaints.  The September deadline won't be moved, but there will
be some flexibility for lenders that have a strong business plan
and have their capital-raising plans far advanced when the
deadline passes, the Journal says.

Spain recently announced higher capital requirements for all of
its banks, part of a wider effort to shore up investor confidence
in the country's financial system, particularly the cajas, whose
weakness had become a flashpoint for investors around the globe,
the Journal recounts.  In a preliminary estimate, the government
said banks will need to raise around EUR20 billion (US$27 billion)
in new capital, although that is about half the amount estimated
by most private-sector analysts, the Journal discloses.

The cajas will also focus on the fine print of the new capital
requirements to calculate how much extra cash they will need to
raise, the Journal states.  Finance Minister Salgado sent a letter
to banking associations last week indicating that the unlisted
lenders will be required to raise their capital cushions -- the
buffers banks must keep against potential losses -- above 10% of
their assets, the Journal relates.  According to the Journal,
listed banks will also face higher solvency requirements, a core
capital ratio of 8%, still below the buffer set for the cajas.

The new regulations are set to be approved at the government's
weekly cabinet meeting Friday, the Journal notes.


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


* Fitch Assigns 'B' Rating to Ukraine's US$1.5-Bil. Eurobonds
-------------------------------------------------------------
Fitch Ratings has assigned Ukraine's US$1.5 billion Eurobond, due
2021, a 'B' rating.  The EURobond has a coupon rate of 7.95%.  The
rating is in line with Ukraine's Long-term foreign currency Issuer
Default Rating, which has a Stable Outlook.

Fitch affirmed Ukraine's ratings on 15 September 2010, following
an upgrade of its Long-term ratings to 'B' from 'B-' on 6 July
2010.  The rating actions reflected Ukraine's emergence from
severe crisis, resumption of economic growth, stronger balance of
payments, lower financial volatility, greater political stability
following 2010 presidential elections and US$15.3bn agreement with
the IMF.

However, Ukraine faces significant challenges to meet its budget
deficit target of 3.5% of GDP in 2011, agreed with the IMF, as
well as implementing major structural reforms to pensions, the
energy sector and banking sector, which are essential elements of
its IMF program.  In addition, Fitch believes significant risk
remains associated with asset quality in the banking system,
sizeable external and fiscal financing requirements, the
implementation of stable and consistent macroeconomic policy-
making and the country's vulnerability to shocks.


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


ALBURN: RBS Hits at Credibility Amid Debt Talks
-----------------------------------------------
Emmet Oliver at Irish Independent reports that Royal Bank of
Scotland has launched an unusually public attack on developer Noel
Smyth's UK property vehicle, Alburn, as debt talks on a potential
default grow increasingly acrimonious.

"Alburn's credibility wears thin," Irish Independent quotes RBS as
saying in a note on Monday about the talks between bondholders and
Alburn, which have been going on for months over borrowings
totaling GBP184 million (EUR218 million), used to fund 44 property
assets.

It is understood that RBS owns up to 20% of the bonds securitised
by Alburn that are now in danger of defaulting, Irish Independent
notes.

"We actually consider that Alburn are losing credibility in this
transaction for a number of factors," RBS said in a note seen by
the Irish Independent.

According to Irish Independent, it is understood that last Friday,
Alburn, led by Mr. Smyth, tabled three proposals to deal with the
pending default, likely to occur in April:

   * One is to swap the current debts into a new loan, but with no
cash up front.

   * A second proposal would see assets being sold off over three
years, with proceeds divided between different classes of
bondholder according to existing agreements.  In this scenario,
Alburn would possibly opt out of the transaction altogether.

    * A third option, and preferred by Alburn, would see the
portfolio of properties worked out over five years, with Alburn
itself getting a fee for managing the properties, once it hit
certain targets.

It is understood that the bondholders' meeting last Friday were
lukewarm on these three ideas, but they have agreed to consider
them for a fortnight before any further decision, Irish
Independent states.

Irish Independent relates that RBS on Monday roundly rejected
these three proposals, saying senior bondholders, holding Class A
notes, had no reason to agree to these ideas.

The bank, Irish Independent says, outlined a series of reasons why
it said Alburn was losing "credibility":

    * Alburn, RBS claimed, has not sold any assets despite giving
a commitment to do so in 2009.

    * Income from the property portfolio continues to fall and is
10% below April 2009 levels.

    * Alburn has spent the past six months trying to organise a
tender offer to buy back bonds at less than face value, but RBS
said the company's time could have been "better applied in
managing the portfolio".

RBS seems to suggest Alburn should now be removed from managing
the properties, Irish Independent says.


COLONNADE II: S&P Withdraws 'D (sf)' Ratings on Various Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' and
withdrew, effective in 30 days time, its credit ratings on the
class A, B, C, D, and E notes in Aeolus CDO Ltd.'s series
COLONNADE II.  At the same time, S&P removed the class A notes
from CreditWatch negative.

The rating actions follow publication of COLONNADE II's early
redemption payment date report, dated Feb. 15, 2011.  Noteholder
meetings held in January and early February 2011 approved
resolutions for early redemption of the transaction.

In the case of early redemption and in accordance with COLONNADE
II's priorities of payments, the issuer makes swap termination
payments to the transaction's swap counterparty from available
collateral proceeds before distributing remaining amounts, if any,
to repay noteholders.

As reported in the early redemption report, there were
insufficient proceeds from the sale of collateral to cover swap
termination payments.  As a result, all noteholders experienced
principal losses.  S&P has therefore lowered its ratings on all
classes of rated notes to 'D (sf)' before withdrawing them.  The
ratings will remain at 'D (sf)' for a period of 30 days before the
withdrawal becomes effective.

The COLONNADE II series is a hybrid collateralized debt obligation
where the issuer initially took exposure through a portfolio
credit default swap to a portfolio of primarily European sterling-
denominated structured finance securities.  The transaction closed
in January 2007.

                           Ratings List

                          Aeolus CDO Ltd.
     GBP89 Million Secured Credit-Linked Floating-Rate Notes
                (Colonnade II) Series COLONNADE II

Rating Lowered, Removed From CreditWatch Negative, and Withdrawn

                             Rating
                             ------
        Class        To                   From
        -----        --                   ----
        A            D (sf)               BB (sf)/Watch Neg
                     NR                   D (sf)

                  Ratings Lowered and Withdrawn

                                Rating
                                ------
           Class        To                   From
           -----        --                   ----
           B            D (sf)               CCC- (sf)
                        NR                   D (sf)
           C            D (sf)               CCC- (sf)
                        NR                   D (sf)
           D            D (sf)               CCC- (sf)
                        NR                   D (sf)
           E            D (sf)               CCC- (sf)
                        NR                   D (sf)

      [1] The withdrawals become effective in 30 days' time.
                        NR -- Not rated.


EDWARDS GROUP: Moody's Changes Outlook on 'B2' Rating to Stable
---------------------------------------------------------------
Moody's Investor's Service has assigned a (P) B3 rating to the
proposed up to US$280 million New First Lien Term Loans to be
borrowed by Edwards (Cayman Islands II) Ltd, Cayman Islands, and
placed under review for possible downgrade the B2 rating of the
company's Existing First Lien Term Loan.  The rating for this
instrument is expected to be aligned to the rating of the US$280
million New First Lien Term Loans raised upon closing.  At the
same time the rating agency affirmed the Ba2 rating for the
company's Superpriority Revolver and the Caa1 rating of its Second
Lien Term Loan as well as the B2 Corporate Family Rating and the
B2 Probability of Default Rating for Edwards Group Limited,
Crawley / UK.  The rating outlook for the corporate family rating
of Edwards Group has been changed to stable from positive, whilst
the outlook for Edwards (Cayman Islands II) Ltd. has been placed
under review in line with the rating of the Existing First Lien
Term Loan.

Moody's issues provisional ratings for debt instruments in advance
of the final sale of securities or conclusion of credit
agreements.  Upon a conclusive review of the final documentation,
Moody's will endeavour to assign a definitive rating to the
different capital instruments.  A definitive rating may differ
from a provisional rating.

                        Ratings Rationale

The rating action follows Edwards' announcement to suggest to its
First Lien lenders an Amendment and Restatement of its credit
facilities including these key changes:

(i) An extension of all or part of the Existing First Lien Term
Loans by two years to May 2016;

(ii) The lenders' consent that the company may borrow up to US$280
million New First Lien Term Loans with maturity in May 2016;

(iii) Permission to repay the existing Second Lien Term Loans;

(iv) Permission to a dividend payment of up to US$230 million,
US$80 million thereof to be used to repay the Vendor Loan Note;

(v) Re-Definition of a distributions basket for future dividend
payments; and

(vi) An option for the company to refinance existing First Lien
Term Loans and/or Revolving Credit Commitments by issuing new
first or second lien notes or loans.

The review of the outlook for a possible stabilization reflects
the negative impact on the rating from the distribution of a large
portion of the cash reserves the company has built since the low
point seen in mid 2009 and in view of future dividend payments
which will limit free cash flow generation compared to the status
before where Edwards was able to retain free cash flow in full and
over time could build a cash buffer for the challenges of cyclical
swings.  However, in Moody's assessment, Edwards will be able to
keep a minimum cash cushion of US$100 million and should be able
to swiftly increase its cash position on the back of a currently
benign economic environment and as a result of efficiency measures
taken.  One important consideration in this respect is the absence
of any financial covenants in the legal documentation of the
credit facilities which provides the company with flexibility to
deal with cyclical swings.  With regard to the revolver Moody's
notes that this facility matures in May 2013 and that a stable B2
Corporate Family Rating would require a timely extension or
replacement not less than 12 months before maturity.

The B2 Corporate Family Rating reflects (i) Edwards Group's
leading market positions and strong competitive position, (ii)
continuous initiatives to innovate products and reduce costs
including the transition of most of the manufacturing operations
to low cost countries as well as (iii) Moody's expectation for a
sustainable improvement in key credit metrics during the economic
recovery despite the company's exposure to volatile end markets.
However, these factors are balanced by (i) the relatively low
product diversity, (ii) high dependency on cyclical swings, and
(iii) the shift in the company's financial policy towards more
shareholder orientation.

The (P) B3 rating for the First Lien Debt instruments reflects its
structural positioning in the group's debt structure as well as a
material volume increase in this class of debt.  As a result of
the refinancing of the Second Lien debt by an increase in First
Lien loans, the relative positioning of the First Lien instruments
is weakened since only GBP 4 million lease rejection claims have a
weaker position in the waterfall, while the superpriority
revolver, trade claims and secured loans at the operating entities
in Korea and the Czech Republic are considered to have a stronger
position.  The rating review of the B2 rating for the Existing
First Lien Term Loans will focus on the success of the suggested
amendment and restatement.  If this get's the necessary consent,
the rating for these instruments is expected to be aligned to the
rating of the US$280 million New First Lien Term Loans raised upon
closing.

Upside rating pressure could build again if the company is able to
(i) to rebuild a solid liquidity cushion sufficient to comfortably
cover cyclical swings in free cash flow generation as well as (ii)
sustain current profitability levels with reported operating
margins in the medium to high teens, which the group is expected
to achieve in 2011 supported by currently favorable industry
conditions and targeted growth initiatives and cost savings and
efficiency improvements resulting from its ongoing restructuring
program.  The latter should allow the group to further improve
cash generation and cash coverage ratios, as indicated by FFO /
Debt above 10% and a positive free cash flow supporting a
reduction in leverage.

Downward rating pressure would arise if (i) Edwards were unable to
sustain its current profitability metrics, as indicated by
reported operating profit margin; (ii) operating profit interest
coverage as reported failed to show a continuing upward slope from
the current level of 3.7x (October 2009 - September 2010) or (iii)
the group was unable to retain its cash position at a minimum
level of US$100 million.  Also, indications that leverage could
exceed 5.5x Net debt / EBITDA or interest cover fall materially
below 2x EBITA could trigger a downward migration.

Downgrades:

Issuer: Edwards (Cayman Island II) Limited

  -- Senior Secured Bank Credit Facility, Downgraded to LGD1, 09%
     from LGD1, 06%

  -- Senior Secured Bank Credit Facility, Downgraded to LGD4, 66%
     from LGD3, 44%

On Review for Possible Downgrade:

Issuer: Edwards (Cayman Island II) Limited

  -- Senior Secured Bank Credit Facility, Placed on Review for
     Possible Downgrade, currently B2

Assignments:

Issuer: Edwards (Cayman Island II) Limited

  -- Senior Secured Regular Bond/Debenture, Assigned a range of 66
     - LGD4 to (P)B3

  -- Senior Secured Regular Bond/Debenture, Assigned a range of 66
     - LGD4 to (P)B3

Outlook Actions:

Issuer: Edwards (Cayman Island II) Limited

  -- Outlook, Changed To Rating Under Review From Positive

Issuer: Edwards Group Limited

  -- Outlook, Changed To Stable From Positive

Edwards Group Limited, headquartered in Crawley / United Kingdom,
formerly known as BOC Edwards, is a spin-off from Linde which sold
the company following the takeover of BOC in May 2007.  The
current major shareholders are CCMP Capital and Unitas Capital.
The company has a global leading position in the manufacturing of
highly engineered vacuum and abatement systems.  The company
produces over 5,000 products ranging from simple vacuum gauges to
complex vacuum solutions for silicon semiconductor and flat panel
display processing serving approximately 750 Semiconductor, 500
Emerging Technologies and 20,000 General Vacuum customers.  During
the first nine months of 2010 Edwards generated revenues of
GBP464 million (approximately US$711 million) from continuing
operations.  Edwards (Cayman Island II) Ltd, Cayman Islands, is a
sub-holding of the group, indirectly 100 % owned by Edwards Group
Limited.


LEEDS GOLF: Park Lane Foundation Acquires Firm
----------------------------------------------
Insider Media Limited reports that Park Lane Foundation in Leeds
has bought the business and assets of Golf Centre, trading as
Leeds Golf Centre, following a company voluntary arrangement
supervised by Begbies Traynor.

The company ran into problems in early 2010, caused by the
economic downturn.  David Wilson and Julian Pitts of Begbies
Traynor became involved and were subsequently appointed as joint
supervisors of a CVA approved by the creditors in May 2010,
according to Insider Media Limited.

Insider Media Limited discloses that it was agreed a portion of
the debt owed would be repaid over a period of time, allowing the
business to continue trading while a new owner was sought.

Begbies Traynor has marketed the business over the last year and a
deal for an undisclosed sum was completed with letting and estate
agents Park Lane Foundation in February, the report adds.

Established 20 years ago, Leeds Golf Centre is located in Wike and
incorporates an 18-hole course, a 12-hole par three course and a
floodlit driving range.  The facilities also include a pro shop, a
teaching academy, and a bar, restaurant and function room.


LLOYDS BANKING: Incoming CEO to Accelerate Sale of UK Branches
--------------------------------------------------------------
Patrick Jenkins and Sharlene Goff at The Financial Times report
that Antonio Horta-Osorio, the incoming chief executive of Lloyds
Banking Group, is planning to accelerate the sale of 600 branches
and has already begun the process of hiring investment banking
advisers to lead the divestment.

According to the FT, a deal could be completed within a matter of
months, compared with a timetable envisaged by outgoing boss
Eric Daniels of up to two years.

The branch sale was ordered by the European Commission as
punishment for the state aid Lloyds took when it was bailed out
following the takeover of HBOS, the FT notes.  The FT relates that
Brussels said the divestment must take place by 2013.

A list of potential advisers is being drawn up and is understood
to include Credit Suisse, JPMorgan and Rothschild, the FT
discloses.

Mr. Daniels had planned to take the full timescale available and
was keen to complete the ongoing integration of HBOS before
turning his attention to the branch sale, according to the FT.
But Mr. Horta-Osorio, who is due to take over Mr. Daniels
following Lloyd's annual results in a week's time, has decided it
will be beneficial to try to draw a line under the affair as soon
as possible, the FT states.  He may even try to complete a sale
before September, when the Commission on Banking -- which has been
considering forcing an enlarged branch divestment -- makes its
final recommendations on the remedies that should be taken to
improve financial stability and competition in British banking,
the FT says.

                 About Lloyds Banking Group PLC

Lloyds Banking Group PLC, formerly Lloyds TSB Group plc,
(LON:LLOY) -- http://www.lloydsbankinggroup.com/-- is a United
Kingdom-based financial services group providing a range of
banking and financial services, primarily in the United Kingdom,
to personal and corporate customers.  The Company operates in
three divisions: UK Retail Banking, Insurance and Investments, and
Wholesale and International Banking.  Its main business activities
are retail, commercial and corporate banking, general insurance,
and life, pensions and investment provision.  The Company also
operates an international banking business with a global footprint
in 40 countries.  Services are offered through a number of brands,
including Lloyds TSB, Halifax, Bank of Scotland, Scottish Widows,
Clerical Medical and Cheltenham & Gloucester.  On January 16,
2009, Lloyds Banking Group plc acquired HBOS plc.


PARS TECHNOLOGY: Taps Rendle & Company as Administrators
--------------------------------------------------------
CRN News reports that PARS Technology has been placed into
administration, following months of speculation about the fate of
the firm.  The report relates that Birmingham-based insolvency
practitioner Rendle & Company was appointed as an administrator
taking responsibility for the firm's business and property with
immediate effect.

Rumors about PARS Technology's financial security have been
circulating for some time, with sources claiming late last year
that its customer list had been put up for sale and that large
numbers of its staff had been made redundant, according to CRN.

The firm last filed accounts which revealed it made a loss of
GBP189,000 in the 12 months prior to Aug. 31, 2009, as turnover
declined from GBP17.3 million to GBP12.1 million year on year, the
report notes.

Earlier this month, CRN was informed by an unnamed member of staff
at PARS that the firm was on the verge of being acquired.  At the
time, numerous channel sources named Viglen, Centerprise and Mesh
as possible suitors, because of the firm's focus on the education
sector, the report notes.

"The system builder market has declined over a period of time and
has diminished and died.  It is a great shame as PARS was one of
the original ones," CRN quotes Nick Smith, marketing director at
tablet and e-reader manufacturer Elonex, as saying.

Headquartered in Milton Keynes, PARS Technology is a systems
builder.


PLYMOUTH ARGYLE: Unable to Pay Tax Bill, To Tap Administrators
--------------------------------------------------------------
PirateFM reports that Plymouth Argyle's GBP300,000 tax bill is due
at Home Park and there is not enough money to pay it.  The report
relates that overall debts are thought to stand at around GBP10
million.

Plymouth Argyle has disclosed that they will bring in an
administrator, according to PirateFM.  The report relates that
that has meant losing ten points, leaving the side facing almost
certain relegation.

PirateFM notes that fans are demanding that directors explain how
the side has ended up in this situation.

The announcement means the Pilgrims have roughly 10 days to save
the club, the report says.  PirateFM relates that in that time,
Plymouth Argyle desperately needs more cash and that will probably
only come from a new owner.

Talks are still going on with three different groups, but the ten
point deduction means the price is just a quid, the report
discloses.

"Investors want two things.  They want a return on their money but
probably just as importantly they want some PR out of it.  Unless
the club succeeds the PR could be adverse rather than beneficial,"
PirateFM quotes Newquay accountant Peter Crane as saying.

Plymouth Argyle Football Club, commonly known as Argyle, or by
their nickname, The Pilgrims, is an English professional football
club based in Central Park, Plymouth.  It plays in Football League
One, the third division of the English football league system.


REYNOLDS GROUP: Moody's Assigns 'Ba3' Rating to Senior Term Loan E
------------------------------------------------------------------
Moody's Investors Service has assigned definitive Ba3 ratings to
the US$2,325 million senior secured Term Loan E (due 2018) and
EUR250 million senior secured Euro Term Loan (due 2018) issued by
Reynolds Group Holdings Limited and certain of its subsidiaries.
Ratings of RGHL's existing debt issues did not change, but LGD
rates of existing debt issues change slightly as outlined below.
Ratings for refinanced debt instruments have been withdrawn.

                        Ratings Rationale

The senior secured term loans were issued (i) to further extend
the group's maturity profile by refinancing approximately US$2,650
million of existing senior secured term loans due in 2015-2016 and
(ii) to reduce the group's interest costs.

The senior secured term loans have been issued by subsidiaries of
RGHL and benefit from senior guarantees of RGHL as well as of
substantially all of its material operating subsidiaries.
Furthermore, the senior secured term loans benefit from security
interests which Moody's understand comprise the clear majority of
the guarantors' assets.  This is reflected accordingly in the Ba3
rating which is two notches above the B2 Corporate Family Rating
and which is in line with the ratings of RGHL's existing senior
secured debt.

The negative rating outlook on RGHL's ratings continues to reflect
the company's stretched financial metrics based on a pro forma
assessment of the Pactiv acquisition (closed in November 2010) and
the related financing.  The outlook could, however, be stabilized
if leverage returns to levels of 6x debt/EBITDA.  The rating could
be upgraded if the group's performance remains resilient, with
solid profit margins that allow for notable free cash flow
generation, along with a reduction of leverage to around 5x
debt/EBITDA on a sustainable basis.  The rating could be
downgraded if the group is unable to generate positive free cash
flows, if leverage cannot be reduced to around 6x debt/EBITDA
within the next 12-18 months, and in case of further major debt-
financed acquisitions.  Furthermore, a tightening of financial
covenant headroom or a weakening of RGHL's liquidity situation
would put pressure on the rating.

Moody's further note that RGHL has recently communicated that it
considers an acquisition of a business operating in the same
industry.  Against this backdrop Moody's caution that the
implications of any potential M&A activity on RGHL's business risk
and financial risk profile, and thus on its rating, will have to
be evaluated on a case by case basis.  While bolt-on acquisitions
with limited integration risk and no material impact on leverage
ratios are not expected to have an impact on RGHL's ratings,
larger acquisitions or acquisitions that materially impact
leverage ratios could result in a downgrade.

Downgrades:

Issuer: Pactiv Corporation

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to LGD6,
     93% from LGD6, 92%

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to LGD6,
     93% from LGD6, 92%

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to LGD6,
     93% from LGD6, 92%

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to LGD6,
     93% from LGD6, 92%

  -- Senior Unsecured Regular Bond/Debenture, Downgraded to LGD6,
     93% from LGD6, 92%

Upgrades:

Issuer: Reynolds Group Holdings Inc.

  -- Senior Secured Bank Credit Facility, Upgraded to LGD2, 24%
     from LGD2, 28%

  -- Senior Secured Bank Credit Facility, Upgraded to LGD2, 24%
     from LGD2, 28%

Issuer: Reynolds Group Issuer Inc.

  -- Senior Secured Regular Bond/Debenture, Upgraded to LGD2, 24%
     from LGD2, 28%

  -- Senior Secured Regular Bond/Debenture, Upgraded to LGD2, 24%
     from LGD2, 28%

  -- Senior Secured Regular Bond/Debenture, Upgraded to LGD2, 24%
     from LGD2, 28%

  -- Senior Secured Regular Bond/Debenture, Upgraded to LGD2, 24%
     from LGD2, 28%

Assignments:

Issuer: Reynolds Group Holdings Inc.

  -- Senior Secured Bank Credit Facility, Assigned Ba3
  -- Senior Secured Bank Credit Facility, Assigned Ba3

Withdrawals:

Issuer: Reynolds Group Holdings Inc.

  -- Senior Secured Bank Credit Facility, Withdrawn, previously
     rated Ba3, LGD2, 28%

  -- Senior Secured Bank Credit Facility, Withdrawn, previously
     rated Ba3, LGD2, 28%

  -- Senior Secured Bank Credit Facility, Withdrawn, previously
     rated Ba3, LGD2, 28%

  -- Senior Secured Bank Credit Facility, Withdrawn, previously
     rated Ba3, LGD2, 28%

Reynolds Group Holdings Limited is a leading global manufacturer
and supplier of food and beverage packaging and consumer storage
products.  It manufactures aseptic packaging products for the food
and beverage industry, consumer packaging products (Reynolds
Consumer) and closures for the beverage, dairy and food segment.
Through the acquisition of Evergreen Packaging in May 2010, the
group also got exposure to the fresh carton packaging market as
well as the uncoated freesheet and coated groundwood paper market.
In November 2010, RGHL acquired Pactiv Corporation, a producer of
packaging products for the North American consumer, foodservice,
and food packaging markets.  Pro forma these acquisitions the
combined group had close to US$10 billion of revenues and
approximately US$1.8 billion EBITDA as adjusted by Moody's on an
LTM basis as per June 2010.  Close to two thirds of revenues are
generated in North America.  The remaining revenues are generated
primarily in Europe and the emerging markets of Asia and Latin
America.


TULLETT PREBON: Fitch Upgrades Senior Unsecured Debt Rating
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Fitch Ratings has upgraded Tullett Prebon plc's Long-term Issuer
Default Rating to 'BBB' from 'BBB-' with Stable Outlook.

The upgrade of TP's Long-term IDR reflects improvements in the
company's net debt, leverage and equity levels to a level
consistent with the current rating.  Leverage and debt-service
ratios have improved since 2007, when GPB300 million of debt was
raised to finance a capital return.  The GBP300 million of debt
was reducing gradually in line with a repayment schedule but in
February 2011, TP refinanced its GBP180 million outstanding loan
and its rarely used GBP50 million committed revolving credit
facility as a GBP120 million three-year term loan and
GBP115 million committed revolving credit facility, materially
reducing gross debt further and mitigating near-term refinance
risks.

The Stable Outlook reflects TP's strong franchise as the world's
second-largest inter dealer-broker and Fitch's expectation that TP
will maintain improved leverage metrics in the medium term.  The
ratings would be downgraded if TP's leverage materially increases.
Downwards rating pressure would also arise from material damage to
the company's franchise or reputation, possibly from operational
or litigation risks, or a sustained weakening of earnings and cash
flow.

TP's profitability, cash generation and margins remain sound,
supported by a flexible cost base and strong operating cash flows.
Revenues rose steadily until 2010, benefiting from high trading
volumes and the increased market volatility.  However, TP reported
an 8% yoy decline in revenues in H110 following broker defections
in North America in H209 and reduced market activity.  The fixed-
income business (the largest revenue contributor) was worst hit,
suffering a 30% decline.  Fitch believes that the impact of the
broker defections has been contained, helped by the product and
geographical diversity of the company's operations.

Operational risk, including reputational and litigation risk, is
the most significant risk for IDB businesses.  This arises from
processing large trading volumes as well as the impact of broker
defections that occasionally occur in the highly competitive IDB
sector.  Credit and market risks are low; as an IDB, TP takes
practically no principal risk.

Fitch expects TP to generally maintain a net cash position in
2011.  The agency has upgraded TP's senior unsecured and
subordinated debt ratings by two notches, equalizing the senior
unsecured debt rating with the Long-Term IDR.  The upgrades
reflect Fitch's view of the greater recovery potential for TP's
creditors due to the markedly reduced leverage levels.

TP is listed on the London Stock Exchange.

The rating actions are:

  -- Long-term IDR: upgraded to 'BBB' from 'BBB-'; Outlook Stable
  -- Senior unsecured debt: upgraded to 'BBB' from 'BB+'
  -- Subordinated debt: upgraded to 'BBB-' from 'BB'


VERGO RETAIL: Lewis's Name May Return to Liverpool High Street
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Liverpool Daily Post reports that the famous Lewis's brand could
make a comeback to the Liverpool high street.  The report relates
that the iconic city department store closed last May and parent
company Vergo Retail collapsed into administration.

As reported by the Troubled Company Reporter-Europe, Sarah Bell
and Steven Muncaster, Partners at MCR, were appointed joint
administrators of department store business Vergo Retail on
May 7, 2010.

The Lewis's brand name has been put up for sale and potential
buyers have until Thursday (Feb. 24) to register their interest,
according to Liverpool Daily Post.

The report notes that Nat Baldwin, head of corporate recovery at
sale organizers Metis Partners, said he has already been
approached by people who want to bring the great Liverpool brand
back to life.

Liverpool Daily Post notes that Metis Partners is also selling the
other "intangible assets and intellectual property" owned by the
former Vergo Retail -- including another famous old Liverpool
brand, Owen Owen.

The deadline for expressions of interest is 4:00 pm this Thursday
(Feb. 24).  Mr. Baldwin said a sale could be completed within a
couple of months, Liverpool Daily Post adds.

Vergo Retail Ltd. was established in 2007 and operates from a head
office in Liverpool, employing a total of 942 staff across 19
outlets.  These include nine significant department stores such as
Lewis's of Liverpool, Robbs of Hexham, Joplings of Sunderland and
Derrys of Plymouth.


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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, Psyche A. Castillon, Julie Anne G. Lopez,
Ivy B. Magdadaro, Frauline S. Abangan and Peter A. Chapman,
Editors.

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