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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

           Friday, February 24, 2012, Vol. 13, No. 40

                            Headlines



B U L G A R I A

BG DRINKS: BGN60,000 Worth of Equipment Stolen from Brewery


F R A N C E

NEXANS SA: S&P Affirms 'BB+/B' Corporate Credit Ratings


G E R M A N Y

ADAM OPEL: GM In Talks with Peugeot to Form Alliance
ATU AUTO-TEILE: S&P Affirms 'B-' Long-Term Corp. Credit Rating
COMMERZBANK AG: Reports EUR316-Mil. Profit in Fourth Quarter 2011


G R E E C E

* GREECE: Unveils Key Terms of Voluntary Debt Write-Down


H U N G A R Y

* HUNGARY: EU Commission Proposes Suspension of Budget Funds


I R E L A N D

CITYMART: Goes Into Receivership, Owners Show Disappointment
RIVOLI PAN: S&P Lowers Rating on Class C Notes to 'B+(sf)'


L A T V I A

LATVIJAS KRAJBANKA: FCMC Accepts KPMG Baltics' Bankruptcy Bid


L U X E M B O U R G

RBC DEXIA: Moody's Reviews Long-term Issuer Rating for Downgrade
TMD FRICTION: Moody's Confirms 'B2' Rating on EUR140-Mil. Notes


S E R B I A   &   M O N T E N E G R O

VEKTRA MONTENEGRO: Court Commences Bankruptcy Proceedings


S P A I N

CABLEUROPA SAU: Moody's Assigns B1 Rating to Sec. Notes Due 2018


S W E D E N

SAS AB: S&P Affirms 'B-' Corp. Credit Rating; Outlook Negative


U N I T E D   K I N G D O M

AFREN PLC: S&P Assigns 'B' Rating to Seven-Year Sr. Sec. Notes
BLUE PRINTING: In Administration, Closes Operations
EUROSAIL 2006-3NC: S&P Lifts Ratings on Three Note Classes to CCC
MANSARD 2007-2: S&P Lowers Rating on Class B1A Notes to 'B(sf)'
NOBLE JEWELLERY: Goes Into Liquidation; 13 Workers Lose Jobs

PORTSMOUTH FOOTBALL: Balram Chainrai May Lose GBP17 Million Stake
RAVENBLACK DEVELOPMENTS: Bank Puts Firm Into Administration
SEWARD (WESSEX): In Administration, Continues Trading


X X X X X X X X

* NordLB Expects Shipping Foreclosures, Failures to Rise in 2012
* EUROPE: Moody's Reviews Ratings of CEE CIS Bank Subsidiaries
* BOOK REVIEW: Performance Evaluation of Hedge Funds


                            *********


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


BG DRINKS: BGN60,000 Worth of Equipment Stolen from Brewery
-----------------------------------------------------------
novinite.com reports that equipment worth approximately BGN60,000
has been stolen from the currently non-operational Ledenika & MM
brewery in the northwestern Bulgarian town of Mezdra.

The facility is owned by BG Drinks, the company of the
controversial businessman Mihail Mihov, who died from a heart
attack in a hotel room in Pravets on March 30, 2011, novinite.com
discloses.

The District Police Directorate in Vratsa reported that the
police inspection of the site yielded that the raid had been
carried out for the period Feb. 11 to Feb. 21, according to the
report.

novinite.com relates that unknown offenders had broken into the
brewery' production hall through an opening in the brick wall and
had stolen parts of stainless steel beer tanks, the local police
said in a statement, adding that preliminary estimates of the
damages amounted to BGN50,000 to BGN60,000.

According to the report, the brewery has been declared insolvent
and has been non-operational for over two weeks.

The facility is to be auctioned off to pay a BGN2 million loan to
a bank, novinite.com reports.

novinite.com adds that it was earlier reported that a total of
69 properties owned by Mihov's heirs will be sold to pay off bank
debts.  The properties are estimated at around BGN10 million, the
report discloses.


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F R A N C E
===========


NEXANS SA: S&P Affirms 'BB+/B' Corporate Credit Ratings
-------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+/B' long- and
short-term corporate credit ratings on French cable manufacturer
Nexans S.A. The outlook is stable.

"We also affirmed the 'BB+' ratings on its senior unsecured
EUR350 million 5.75% notes due in 2017, EUR212.6 million 4%
convertible bonds due in 2016, and EUR280 million 1.5%
convertible bonds due in 2013. The '3' recovery ratings on the
issues indicate our expectation of meaningful (50%-70%) recovery
in the event of a payment default. The affirmation primarily
reflects the fact that we expect Nexans to withstand copper price
fluctuations and maintain credit metrics commensurate with our
ratings and strong liquidity across the cycle despite its
acquisition of U.S.-based AmerCable Inc. (B-/Watch Pos/--). The
AmerCable acquisition and weaker-than-expected Standard & Poor's-
adjusted credit metrics for 2011 have, in our view, eliminated
any headroom for further acquisitions or cash burn in 2012," S&P
said.

"We expect Nexans to post positive, although moderate, organic
growth and maintain operating margins in 2012 despite the
challenging macroeconomic environment, partly because of its
geographic and end-market diversity. In our base-case scenario,
we assume Nexans will improve funds from operations (FFO) and
generate slightly positive free operating cash flow (FOCF) in
2012, in turn containing the increase in its debt. We forecast
that adjusted FFO to debt will be around 20% at year-end 2012,
assuming no major swings in copper prices, and that adjusted debt
to equity will be around 40% on the same date," S&P said.

"We expect net debt to increase by around EUR300 million after
the completion of the cash acquisitions of both AmerCable and
Chinese cable manufacturer Shandong Yanggu, expected in the next
few months. Our net debt calculation also includes the EUR200
million provision Nexans recorded in 2011 after it received a
statement of objections related to the European Commission's
antitrust investigation. This, along with volatile copper prices,
weakened Nexans' 2011 credit metrics, especially FFO to debt. On
the upside we anticipate that Nexans' has the ability to generate
positive FOCF and maintain strong liquidity," S&P said.

"The stable outlook reflects our expectation that, Nexans will be
able to maintain credit metrics in line with our ratings in 2012
because of its ability to weather a certain degree of potential
economic slowdown and maintain solid operating performance
throughout 2012," S&P said.

"The acquisitions and weaker FFO generation throughout 2011,
however, have eroded any headroom at the current rating level, in
our view. Nexans' adjusted credit metrics depend highly on copper
prices, but under any price scenario we do not expect the company
to burn significant cash, and we have assumed positive FOCF for
2012 under our base case. In addition, our base case factors in
only the cash outflow of the recent acquisitions and the EUR200
million fine. Consequently, any negative deviation from our
forecasts, such as a deterioration of the economic environment
affecting Nexans' cyclical markets, negative FOCF or any large
acquisition in the coming 12 months, could lead us to consider a
negative rating action," S&P said.

"We view consistently positive FOCF generation and an FFO-to-debt
ratio of 20%-25% over the cycle as commensurate with the current
rating. We also expect the debt-to-capital ratio to remain below
40% at all times," S&P said.

"We might consider a positive rating action on Nexans if the
company reduced its post-acquisitions-adjusted debt through FOCF
generation and improved its profitability significantly over the
coming years, although we consider this to be unlikely at this
stage," S&P said.


=============
G E R M A N Y
=============


ADAM OPEL: GM In Talks with Peugeot to Form Alliance
----------------------------------------------------
Alex Webb and Tim Higgins at Bloomberg News report that General
Motors Co. (GM) and PSA Peugeot Citroen (UG) are in talks to form
a broad partnership as the two automakers struggle with declining
car sales in Europe.

According to Bloomberg, a person familiar with the discussion
said on Wednesday that the alliance may include developing
engines and building vehicles together in the region.

GM, the world's largest carmaker, is looking for ways to turn
around its unprofitable Opel brand, while Peugeot is seeking to
stem a growing debt load, Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on Feb. 20,
2012, Bloomberg News related that GM, which posted a record
annual profit of US$9.19 billion for 2011, said more cost cuts
are coming for its money-losing Europe unit after the last
turnaround plan failed to end losses there.  The automaker's
Europe business, including the Opel brand, lost US$747 million
last year before taxes and interest, Bloomberg disclosed.
Bloomberg noted that while that's an improvement from US$1.95
billion lost in 2010, it's not break-even as Detroit-
based GM had planned until November when it pulled back the
forecast as the European outlook worsened.  While GM has gained
ground in the U.S., Ruesselsheim, Germany-based Opel and sister
brand Vauxhall in the U.K. have continued to lose market share
under pressure from competitors such as Volkswagen AG and Hyundai
Motor Co., Bloomberg stated.  A drawn-out rescue effort in the
wake of GM's bankruptcy, including an aborted sale, also soured
consumers on the brand, Bloomberg said.

Adam Opel GmbH -- http://www.opel.com/-- is General Motors
Corp.'s German wholly owned subsidiary.  Opel started making cars
in 1899.  Opel makes passenger cars (including the Astra, Corsa,
and Vectra) and light commercial vehicles (Combo and Movano).
Its high-performance VXR range includes souped-up versions of
Opel models like the Meriva minivan, the Corsa hatchback, and the
Astra sports compact.  Opel is GM's largest subsidiary outside
North America.


ATU AUTO-TEILE: S&P Affirms 'B-' Long-Term Corp. Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Germany-based auto parts retailer and integrated workshop
operator A.T.U Auto-Teile Unger Handels GmbH & Co. KG (ATU) to
negative from stable. "At the same time, we affirmed our 'B-'
long-term corporate credit rating on ATU," S&P said.

"The outlook revision reflects our view that ATU's liquidity is
now 'less than adequate,' as defined in our criteria. ATU
suffered from unusually mild weather conditions in the first and
fourth quarters of last year, resulting in a significantly lower
reported cash position at year-end 2011 compared with previous
years. We understand that cash flows were pressured by lower
sales and earnings, coupled with high working-capital outflows.
According to ATU's management, the company made up for some of
the shortfall in winter sales in the first two months of 2012,
which was characterized by cold temperatures and snowfall
throughout Germany. We nevertheless believe that the company's
financial flexibility to fund its ongoing operations has
tightened," S&P said.

"At year-end 2011, ATU's adjusted cash balance fell to about
EUR31 million compared with about EUR121 million a year earlier.
Historically, seasonal earnings generation and working capital
needs have led to negative free operating cash flows of at least
EUR40 million by the end of the third quarter. Although we
believe the company is likely to reduce inventories throughout
the year, we believe its liquidity could remain subdued
throughout 2012. Our view also takes into account continued
pressures on the group's reported operating profitability, which
was weaker than we previously expected. ATU reported an EBITDA
margin of only about 6.4% for 2011, compared with 5.7% in 2010,"
S&P said.

"The rating on ATU reflects our view, under our base-case
scenario, that the group's sales will somewhat increase in 2012,
with earnings staying roughly flat year on year. On that basis,
and assuming that the company will be able to release some
working capital, we expect free operating cash flow to be between
EUR10 million and EUR20 million in 2012. We also assume that the
group won't need to rely on its revolving credit facility to fund
seasonal working capital needs throughout the year. Failure to
return to free operating cash flow generation, and a further
significant deterioration of ATU's cash position throughout 2012,
would put pressure on the rating," S&P said.

"The rating reflects our view of ATU's 'highly leveraged'
financial risk profile and 'weak' business risk profile. Our
financial assessment relies on accounts from A.T.U Auto-Teile-
Unger Investment GmbH & Co. KG, an intermediate holding company
between ATU and A.T.U Auto-Teile-Unger Holding GmbH, because ATU
doesn't publish financial accounts. We believe that ATU's high
leverage limits its financial flexibility. ATU's seasonal
business model, with high intrayear earnings fluctuations and
working-capital needs, and its exposure to pricing pressures in
the highly competitive German automotive aftermarket could, in
our view, impair its profitability over time," S&P said.

"These negative factors are somewhat mitigated by the company's
nationwide network coverage, which affords it considerable
purchasing power, allowing it to effectively run its discount
business model with some cost advantages over original equipment
manufacturer dealers. The rating is also supported by the high
awareness of ATU's brand and ATU's limited debt service needs,
with no debt amortizations before 2014," S&P said.

"The negative outlook reflects the possibility of a downgrade
over the next 12 months if ATU's currently 'less than adequate'
liquidity profile deteriorated further. This could stem from
renewed pressure on the group's profitability in a potentially
more challenging economic environment in 2012, or from the
group's failure to reduce working capital levels or effectively
control capital expenditures," S&P said.

"We could lower the rating on ATU if the group's intrayear
liquidity position declined significantly from the year-end 2011
level, leading us to reassess liquidity as 'weak'. We could also
lower the rating if mild weather conditions in the coming winter
or intensifying competition led to lower sales at ATU and ongoing
pressure on the group's reported EBITDA margin. We consider an
EBITDA margin of less than 6% as inconsistent with the current
ratings, since we assume negative free operating cash flow
generation at that level," S&P said.

"We currently see limited upside rating potential, owing to the
company's 'less than adequate' liquidity and generally weak
ability to reduce debt through free cash flow, given the highly
leveraged financial profile," S&P said.


COMMERZBANK AG: Reports EUR316-Mil. Profit in Fourth Quarter 2011
-----------------------------------------------------------------
BreakingNews.ie reports that Commerzbank AG recorded a fourth-
quarter profit of EUR316 million after the bank cut costs and had
fewer bad loans.

The result improves on profit of EUR257 million in the same
quarter a year ago, BreakingNews.ie says.

And it is far better than the EUR687 million loss recorded in the
third quarter when the company had large write-offs for Greek
government bonds, BreakingNews.ie notes.

Bad loans fell to EUR381 million from EUR595 million,
BreakingNews.ie discloses.

Headquartered in Frankfurt am Main, Germany, Commerzbank AG --
http://www.commerzbank.com-- is the parent company of a
financial services group active around the world.  The group's
operating business is organized into six segments providing each
other with mutually beneficial synergies: Private and Business
Customers, Mittelstandsbank, Central and Eastern Europe,
Corporates & Markets, Commercial Real Estate and Public Finance
and Treasury.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Jan. 23,
2012, Moody's Investors Service downgraded the standalone bank
financial strength ratings (BFSRs) of Commerzbank AG and
Commerzbank Europe (Ireland) (CBE(I)) to D+ from C-, that of
Eurohypo AG to E+ from D-, and kept the revised ratings on review
for further downgrade. At the same time, Moody's placed on
review for downgrade the A2/Prime-1 senior debt and deposit
ratings of Commerzbank AG, Commerzbank International S.A. (CISAL)
and CBE(I), as well as the A3/Prime-1 ratings of Eurohypo AG. The
D BFSR and Prime-2 short-term debt ratings of Deutsche
Schiffsbank were unaffected by the rating actions, but its A3
senior debt and deposit ratings were placed on review, direction
uncertain, ahead of their alignment with the debt ratings of
Commerzbank AG. The review for downgrade of the ratings of
various hybrid instruments of Commerzbank Group, initiated on
November 7, 2011, has been extended.

Moody's said that the weakening resilience and eroding franchise
of Eurohypo AG were the key drivers for the BFSR downgrades and
various rating reviews for downgrade initiated for the five
Commerzbank Group entities.


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


* GREECE: Unveils Key Terms of Voluntary Debt Write-Down
--------------------------------------------------------
Xinhua reports that Greece announced on Tuesday the key terms of
the voluntary write-down of part of its sovereign debt owned by
private bondholders, a few hours after a euro group meeting in
Brussels sealed the second bailout package for the country to
avoid a default next month.

According to Xinhua, a press release issued by the Greek Finance
Ministry said that the transaction under the Private Sector
Involvement (PSI) plan agreed initially at the October 26 euro
zone summit "is expected to include private sector holders of
approximately EUR206 billion (US$272.89 billion) aggregate
outstanding face amount of Greek bonds."

After marathon talks since late 2011, banks and hedge funds
reached a deal with Greece to eventually accept losses of 53.5%
on the nominal value of the Greek state bonds they currently
hold, Xinhua relates.  Xinhua notes that the October 26 agreement
had paved the way for a 50-percent "haircut."

The announcement said that private sector creditors are expected
to swap the bonds for new ones with longer maturities at coupons
starting from 2 percent annually until 2015 to 4.3% annually
after 2020, Xinhua notes.

European officials and analysts expect that some bondholders
might not be satisfied with the final deal, Xinhua states.
According to Xinhua, the announcement added that for such case,
the Greek government will shortly submit to the Greek parliament
a draft bill which will introduce a collective action clause to
be used in the implementation of the PSI transaction if necessary
to achieve participation at the levels anticipated by the Oct. 26
summit.


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


* HUNGARY: EU Commission Proposes Suspension of Budget Funds
------------------------------------------------------------
Riva Froymovich and Laurence Norman at The Wall Street Journal
report that the European Commission proposed Wednesday to suspend
EUR495 million (US$602.2 million) in European Union budget funds
for Hungary in 2013 unless it acts quickly to cut its deficit.

Hungary's government found the suspension proposal unfounded,
unfair and legally disputable, saying it has already taken
prudent steps, while an economy ministry official, as cited by
the Journal, said there was no "practical chance" that the funds
would be suspended.

The Journal notes that Lajos Kosa, the deputy chairman of the
country's governing Fidesz party, even said the decision led to
"bad blood" and the commission made "an exceptionally bad and
irresponsible decision."

The proposed suspension, unprecedented for any member state,
would represent 0.5% of Hungary's gross domestic product, and
comes as the country battles with the European Union's executive
over controversial new laws that critics say threaten the
independence of the central bank and judicial system, the Journal
relates.  Hungary is also in the process of negotiating a credit
line from the EU and International Monetary Fund to restore
investor confidence, the Journal discloses.


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


CITYMART: Goes Into Receivership, Owners Show Disappointment
------------------------------------------------------------
Kilkeeny People reports that Kilkenny Mart Co-operative and David
Lyons of Melcorpo Ltd, who were involved in the proposed
development of the old Kilkenny Mart, have expressed their
disappointment with news that the joint company they set up has
gone into receivership.

In a statement issued by the chairman of the mart, Michael
Parsons, Kilkenny Co-operative Livestock Mart (KCLM) noted the
appointment of the receiver by National Irish Bank to Citymart, a
company in which KCLM has a 50% interest, according to Kilkeeny
People.  The report relates that the statement said KCLM's
involvement in the project dates from its relocation to its
current site at Cillin Hill in Kilkenny.

Kilkeeny People relays that in a separate statement from the
directors of Citymart, made up of Melcorpo Ltd and the Kilkenny
Co-op Mart, said they too were disappointed with the decision to
appoint a receiver to the firm's site at Barrack Street,
Kilkenny.  "The directors regret that the proposals presented by
Citymart to the bank for viable development of the site were not
acceptable to National Irish Bank," the statement said, Kilkeeny
People discloses.

Kilkeeny People notes that both the Co-operative mart and
Citymart believe that the development of the site remained an
exciting opportunity for Kilkenny city and the surrounding areas.

"Unfortunately, the dramatic and rapid economic downturn has made
the development of the site immensely challenging.  Citymart
hopes that the site will reach its full potential over time," the
Citymart statement said, the report adds.

Meanwhile, Kilkeeny People relates that the mart co-op said that
its involvement in Citymart was structured to ensure that all
borrowings in relation to the project remained totally separate
from the co-op and its business in Cillin Hill.  "All debts of
Citymart were ring fenced to that company and KCLM is not, and
will not be, liable for any debt incurred by Citymart," the
report quoted the mart co-op as saying.


RIVOLI PAN: S&P Lowers Rating on Class C Notes to 'B+(sf)'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered and removed from
CreditWatch negative its credit ratings on RIVOLI Pan Europe 1
PLC's class A and B notes, and lowered its rating on the class C
notes. "At the same time, we have lowered and removed from
CreditWatch negative our rating on the class X notes, and
subsequently withdrew this rating," S&P said.

The downgrades follow S&P's review of the remaining loans backing
this transaction, and it has concluded that:

  * Although it does not expect any losses to occur, in view of
    the difficult conditions in the Spanish commercial real
    estate market, the risk of losses to the class C notes has
    increased; and

  * The class A and B notes have become more vulnerable to the
    overall credit deterioration in the pool, although the agency
    still expects that they will recover the full principal
    amount.

"RIVOLI Pan Europe 1 is a commercial mortgage-backed securities
(CMBS) transaction that closed in December 2006. It was initially
secured by five loans, one of which, the SCI Nowa loan, has fully
repaid. The repayment reduced the current balance of the notes to
EUR371.7 million (from EUR480 million at closing)," S&P said.

The transaction is now secured by four loans, backed by 10
properties located in Spain, the Netherlands, and France. The
overall performance of the loans has remained stable since
closing. The final maturity date of the notes is in six years
(August 2018).

"Two loans account for more than 59% of the pool balance in the
transaction. These are secured by assets in Spain and--although
these loans are performing--given the deteriorating economic
climate in Spain, the risk of losses on these loans has in our
view increased. The other loans are lowly leveraged and secured
by either good assets, or long leases to strong national or
international companies. In our analysis, we do not expect any
loans to incur losses," S&P said.

                     Parque Principado Loan

The largest loan in the transaction (30.5% of pool balance) is
secured by a regional shopping center in Oviedo, northern Spain.
The loan was granted to the borrower for EUR114.7 million,
divided into two tranches of EUR113.4 million and a pari passu
tranche of EUR1.3 million.

The loan was advanced at a floating rate of interest. The
borrower entered into a five-year cap agreement (with an interest
rate strike set at 4.58%) for the larger tranche of the loan
(EUR113.4 million). The smaller tranche of the loan is unhedged.
The loan was extended and now matures in July 2013. The main
features of this loan are:

* The interest coverage ratio (ICR) was 2.09x at Day 1. It is
   currently 5.02x, well above the covenant of 1.50x. This
   significant rise in the ICR is likely to have been driven by
   the current low interest rate environment.

* The loan had a Day 1 loan-to-value (LTV) ratio of 67.7%. It is
   currently reported at 69.5%, well within the covenant of
   76.0%.

* The assets are now valued at EUR164.1 million, versus previous
   valuations of EUR155.5 million (2009), and EUR168 million
   (2006).

The center is located in one of the main retail destinations in
Asturias, Spain. Located five kilometers (km) to the northeast of
Oviedo, on the junction of two motorways connecting the main
towns in the region, the shopping center is the region's
principal out-of-town retail destination. The center opened in
2001 and is next to an IKEA store of approximately 20,000 sq m.
The center also includes a 20,000 sq m Eroski hypermarket. The
IKEA store and the hypermarket are not part of this transaction.

"It is a well-established high-quality shopping center, with good
income diversity and a strong tenant mix. It comprises a two-
level enclosed mall dedicated to fashion and leisure, with cafes,
restaurants, a bowling alley, and a cinema. Most of the space is
on the ground floor, with the leisure element arranged on two
levels. Included in this area, but outside the covered space, are
two stand-alone units. Nationally- and internationally-recognized
retailers are present in the shopping center, such as Zara, C&A,
and H&M," S&P said.

"The center's weighted-average unexpired lease term was 5.17
years at closing, with approximately 72% of income due to expire
before loan maturity. Despite the economic downturn between 2008
and 2011, occupancy rates have been stable at 88%, with granular
income arising from 120 tenants occupying the rented areas (down
from 122 at cutoff, in December 2006). The maintenance of stable
occupancy rates, particularly during the recent downturn, is an
indicator of the center's attractiveness and its ability to
attract tenants," S&P said.

"The servicer reported a gross rental income of EUR10.5 million
for 2011. The implied gross yield, utilizing the latest external
valuation, is 6.4%. This would suggest that the valuer may have
implied a net yield in the region of 5.5% after taking into
account operating and maintenance capital expenditures, which
would reduce net available income, and may have given credit to
future rental income from what we view as structurally vacant
space. This range is more in line with levels observed for prime
London shopping centers, such as the 5.25% yield in the recent
sale of 50% of Stratford City in 2011. On this basis, we consider
that recoveries would likely be lower than the current valuation
suggests," S&P said.

"Although performance is stable and we do not anticipate losses
on this loan, we believe the risk of losses has increased against
a backdrop of difficult macroeconomic conditions in Spain, the
high unemployment rate that could dampen demand for retail and
leisure expenditures, and general credit contraction in the
Spanish banking market. We have therefore reduced the amount of
recovery proceeds that we would expect from this asset," S&P
said.

                       Santa Hortenisa Loan

The second largest loan in the pool (28.5%) is secured by an
office property in Madrid, Spain. The loan was granted to the
borrower for EUR113.3 million, divided into two tranches of
EUR112.0 million and EUR1.3 million. Only the larger tranche is
securitized. Amounts due under the two tranches rank pari passu.

The loan is floating-rate for seven years, maturing in January
2013. The borrower entered into a swap agreement to convert the
floating-rate payments it makes under the loan into fixed-rate
payments. The securitized portion of the loan had a Day 1 LTV
ratio of 48.7% and ICR of 2.84x.

Santa Hortensia is an office building located next to the A-2
motorway and the M-30 inner ring road of Madrid. The property was
built in 1989 for IBM's occupation and it is IBM's headquarters
in Spain. It extends to 10 floors, dedicated to office use, but
also includes a showroom, auditorium, staff restaurant, and
technical rooms. It includes three basement levels with 948
parking spaces.

The property is in a residential area, but is in close proximity
to other office buildings and benefits from good communication
links. Madrid's international airport is 10 km away.

"As the property is IBM's Spanish headquarters, and was purpose-
built for IBM, the likelihood of IBM renewing its leases and
remaining on site are high, in our view. This was demonstrated by
IBM's original renewal of the lease, which was due to terminate
in 2010--two years before loan maturity. In September 2009,
however, the borrower preemptively extended the lease with IBM to
September 2015. This extension was at a slightly lower rent, with
a commitment by the borrower to refurbish the property, with a
13-month rent-free period (which has since elapsed) and sharing
of property taxes, and a prepayment of the loan to comply with
the LTV ratio covenant," S&P said.

"In our opinion, the asset is of good quality, as demonstrated by
the lease renewal by IBM and the borrower's recent commitment to
capital expenditures. However, the soft Madrid office market,
with reducing take-up, increasing office vacancy (along the A-2
motorway area it is over 15%, according to external sources), and
declining rents, may reduce the borrower's ability to entice IBM
to remain in the property after 2015, at the current rent
levels," S&P said.

"A purchaser of the asset at loan maturity in 2013 would likely
factor this risk into the price it is willing to pay for the
asset. The difficulties in re-letting the entire IBM-molded
building located in a residential district could be compounded if
it took place in a weak market. In light of this, we have
significantly reduced our recovery expectations for this asset,"
S&P said.

                         Remaining Loans

The remaining two loans (41%) are backed by properties with long
leases to strong tenants:

  * In the Blue Yonder loan, the seven properties are entirely
    let to KLM under leases that mostly mature in August 2018,
    three years after loan maturity. These properties are located
    in Schiphol airport, KLM's hub airport. The loan is currently
    continuing to amortize from a current reported LTV ratio of
    44.6%.

  * The second loan is the Rive Defense loan, backed by office
    property located in Nanterre outside Paris, and fully let to
    SFR, a subsidiary of Vivendi S.A. (BBB/Stable/A-2). The main
    leases in this property expire in 2018, and the current
    reported LTV ratio is 67.7%.

"In our opinion, we do not expect any losses on these loans," S&P
said.

                          Rating Actions

"In view of the risks associated with the two Spanish loans that
account for 59% of the transaction balance, we consider that the
creditworthiness of the transaction has deteriorated and,
accordingly, we have lowered the rating on the class C notes to
speculative-grade. Furthermore the levels of credit enhancement
available to the class A and B notes have reduced. We have
therefore lowered our ratings on the class A, X, and B notes,"
S&P said.

"This transaction has exposure to one or more of the banks in
counterparty roles that were affected by our Nov. 29, 2011 rating
actions. On Jan. 31, 2012, we placed our ratings on the class A,
X, and B notes on CreditWatch negative in view of the downgrade
of Credit Agricole. The results of our credit analysis
(downgrades) mean that we are no longer seeking to rate above the
rating on Credit Agricole and, accordingly, we have removed from
CreditWatch negative our ratings on the class A, X, and B notes,"
S&P said.

"At the same time, we have also withdrawn our rating on the class
X notes in line with our criteria for rating interest-only
securities. For interest-only securities that reference either
the entire asset pool of a transaction or an amortization
schedule or formula, we maintain their current ratings until all
principal- and interest-paying classes rated 'AA-' or higher have
been retired or downgraded below that rating level--at which time
we will withdraw these interest-only ratings," S&P said.

           Potential Effects of Proposed Criteria Changes

"We have taken the rating actions based on our criteria for
rating European CMBS. However, these criteria are under review,"
S&P said.

"As highlighted in the Advance Notice of Proposed Criteria
Change, we expect to publish a request for comment (RFC)
outlining our proposed criteria changes for rating European CMBS
transactions. Subsequently, we will consider market feedback
before publishing our updated criteria. Our review may result in
changes to the methodology and assumptions we use when rating
European CMBS, and consequently, it may affect both new and
outstanding ratings on European CMBS transactions," S&P said.

"Until such time that we adopt new criteria for rating European
CMBS, we will continue to rate and surveil these transactions
using our existing criteria," S&P said.

            Standard & Poor's 17g-7 Disclosure Report

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:

   http://standardandpoorsdisclosure-17g7.com/1111441.pdf

Ratings List

Class     Rating         Rating
          To             From

RIVOLI Pan Europe 1 PLC
EUR479.8 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Lowered and Removed From CreditWatch Negative

A         A   (sf)       AA- (sf)/Watch Neg
B         BBB (sf)       AA- (sf)/Watch Neg

Rating Lowered

C         B+ (sf)        BBB-(sf)

Rating Lowered, Removed From CreditWatch Negative, And Withdrawn

X         A (sf)         AA- (sf)/Watch Neg
          NR             A (sf)

NR -- Not rated.


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


LATVIJAS KRAJBANKA: FCMC Accepts KPMG Baltics' Bankruptcy Bid
-------------------------------------------------------------
The Baltic Times, citing LETA, reports that Latvijas Krajbanka
will face bankruptcy charges from KPMG Baltics.

According to the Baltic Times, the Financial and Capital Markets
Commission (FCMC) decided to accept the proposal from KPMG
Baltics, an auditing company in charge of the bank, to launch
bankruptcy proceedings against Krajbanka.

As reported in the Troubled Company Reporter-Europe in Dec. 27,
2011, Bloomberg News, citing the Baltic News Service, said
Latvijas Krajbanka, the lender suspended by bank regulators on
Nov. 21, was declared insolvent by a Latvian court.  The Riga-
based newswire disclosed that Janis Brazovskis, the deputy head
of the bank regulator, said the bank's liabilities exceeded
assets by about LVL100 million (US$187.7 million), Bloomberg
related.

Headquartered in Riga, Latvia, AS Latvijas Krajbanka provides
commercial banking services to businesses and private individuals
in Latvia and the markets of the Commonwealth of Independent
States.  As of Dec. 31, 2009, AS Latvijas Krajbanka had 115
customer service centers and 190 automated teller machines.  AS
Latvijas Krajbanka is a subsidiary of AS banka Snoras.


===================
L U X E M B O U R G
===================


RBC DEXIA: Moody's Reviews Long-term Issuer Rating for Downgrade
----------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
Aa3 long-term issuer rating of RBC Dexia Investor Services
Limited.  The rating action follows the announcement by Moody's
on February 15, 2012 to place Royal Bank of Canada's (rated Aa1,
on review for downgrade; Prime-1; B/Aa3 on review for downgrade)
standalone rating on review for downgrade. The review will
consider both parental support and standalone credit
fundamentals.

Ratings Rationale

RBC Dexia, a UK-based joint-venture, is equally owned by Royal
Bank of Canada (RBC) and Dexia Banque Internationale a Luxembourg
(DBIL, rated Baa1 on review for downgrade; Prime-2 on review for
downgrade; D/Ba2 on review with direction uncertain).

The Aa3 long-term issuer rating of RBC Dexia has been put on
review for downgrade following our rating action on the joint
venture's co-owner, RBC, which was placed on review for downgrade
among other banks and securities firms with global capital
markets operations.

The rating actions on banks with global capital market operations
reflected, to differing degrees, the combined pressures stemming
from more fragile funding conditions, wider credit spreads,
increased regulatory burdens and more difficult operating
conditions (for further details please see "Challenges for Firms
with Global Capital Markets Operations: Moody's Rating Reviews
and Rationale", published on 15 February 2012).

During the review, Moody's will focus on to what extent RBC
Dexia's issuer rating, and in particular our current parental
support assumptions, might be affected by a weakening of RBC's
standalone credit profile.

The review will also consider RBC Dexia's standalone
creditworthiness in the context of the potential impact of the
delayed sale process -- or more generally the operating
environment -- on the issuer's fundamentals. Announced since 20
October 2011 by Dexia, the disposal of DBIL's 50% participation
in RBC Dexia is taking more time than initially expected. During
the review, Moody's will assess whether this delayed sale process
has affected the joint-venture standalone creditworthiness,
particularly its franchise value and risk positioning.

RBC Dexia's Aa3 issuer rating currently incorporates a baseline
credit assessment of A1 and a very high probability of direct
support from RBC and DBIL (standalone ratings of Aa3 on review
down and Ba2 on review with direction uncertain respectively).

During the review, we will consider a potential downgrade of the
Aa3 issuer rating of up to two notches, i.e. to A2.

What Could Change The Rating Up/Down

RBC Dexia's long-term issuer rating are on review for downgrade,
as such the probability of an upgrade is remote.

RBC Dexia's long-term issuer rating would likely be downgraded in
the event of (i) a deterioration of the standalone rating of RBC,
which is currently under review for downgrade, (ii) an evidence
of a significant deterioration of the joint-venture's standalone
creditworthiness, and/or (iii) a change in Moody's assessment of
the probability of parental support.

Rating Methodology

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology, published in February 2007
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology, published in March 2007.


TMD FRICTION: Moody's Confirms 'B2' Rating on EUR140-Mil. Notes
---------------------------------------------------------------
Moody's Investors Service has confirmed the B2 rating on
EUR140 million (originally EUR160 million) worth of senior
secured notes issued by TMD Friction Finance S.A. The outlook on
the rating is stable.

Ratings Rationale

The rating action concludes the review of the rating on the
senior secured notes initiated on September 27, 2011, following
the announcement that Nisshinbo Holdings Inc. was to acquire TMD
Friction Group S.A. and its subsidiaries from private equity firm
Pamplona. The acquisition closed on November 29, 2011.

Following the takeover, TMD Friction was required by the
indenture of the senior secured notes to offer note holders to
repurchase the notes at a purchase price equal to 101% of the
aggregate principal amount thereof, plus accrued and unpaid
interest. The respective tender offer concluded on January 25,
2012 with EUR20 million of the notes being tendered. The funds
for the repurchase of the notes were provided by NISH through a
subordinated intercompany loan. This shareholder loan does not
require cash interest payments and is subordinated to the senior
secured notes to an extent that it is considered as 50% equity by
Moody's. Consequently, no shareholder loan funds have been
included in Moody's loss-given-default (LGD) analysis and the
rating of the remaining EUR140 million of notes outstanding
remains unchanged. Moreover, the resulting reduced debt level at
TMD Friction is considered as having a slightly positive impact
on the company's Corporate Family Rating (CFR).

The B2 CFR which has been confirmed on December 21, 2011,
primarily reflects Moody's view that it is beneficial for TMD
Friction to be part of a larger, more diversified, publicly
listed industrial group. Furthermore, Moody's believes that the
opportunities associated with the new shareholder, such as joint
purchasing or marketing activities, outweigh potential risks,
such as integration risks or challenges associated with different
corporate cultures. However, the CFR remains constrained at B2
because of weaker-than-expected earnings for the first nine
months of 2011, particularly in the third quarter, and increasing
macroeconomic risks.

NISH is a publicly listed holding company with subsidiaries that
are active in textiles, automobile brakes, papers, mechatronics,
chemicals and electronics. Specifically, the ratings confirmation
is based on Moody's understanding that NISH intends to operate
TMD Friction as an independent, wholly owned subsidiary that will
gradually be integrated into the Nisshinbo group. It also
reflects the rating agency's expectation that neither TMD
Friction's business strategy nor financial policy will change
materially as a result of the change in ownership. According to
TMD Friction, the combination with NISH's automobile brake
business creates the world's largest automotive brake friction
manufacturers. The combined companies have revenues of over EUR1
billion and more than 6,000 employees.

TMD Friction's leverage on a Moody's-adjusted basis stood at 4.0x
debt/EBITDA as of September 2011 (3.4x as of December 2010). In
order to remain adequately positioned at B2, TMD Friction would
need to maintain debt/EBITDA at 4.0x or lower. Potentially higher
leverage could be tolerated only for a limited period of time.
More positively, Moody's notes that TMD Friction has signed two
revolving credit facilities of EUR44 million, although the rating
agency acknowledges that these contain conditionality language in
the form of financial covenants. However, in Moody's view, the
facilities provide TMD Friction with an additional cash source to
cover its short-term funding needs and improve its overall
liquidity profile.

TMD Friction's B2 CFR is based on the following: (i) the
company's strong position in the original equipment market and
the aftermarket for automotive brake pads and linings; (ii) the
fact that a large proportion of its revenues are generated in the
usually more resilient aftermarket; (iii) the company's advanced
technologies, which allow it to supply original equipment
manufacturing (OEM) customers worldwide despite region-specific
product requirements; (iv) its established and solid
relationships with automobile manufacturers and auto equipment
suppliers; and (v) its operating footprint, which benefits from a
reduced cost base on the back of successful rationalization and
cost-cutting initiatives in recent years.

The current B2 ratings remain constrained by TMD Friction's
limited diversification in terms of geography and product scope.
In addition, there is strong competition among suppliers in the
automotive OEM market, which in turn is highly exposed to
fluctuations in the overall economic environment. Moreover,
Moody's expects that TMD Friction's high interest costs and
further investments in growth opportunities could significantly
constrain the company's generation of positive free cash flow.
Lastly, the company is exposed to raw material price fluctuations
(e.g., steel, copper and chemicals), which present a challenge in
terms of recovering increasing input costs from customers in a
timely fashion.

What Could Change The Rating Up/Down

Moody's would consider upgrading TMD Friction's ratings if the
company were able to (i) persistently generate EBIT margins above
6%; (ii) reduce leverage to close to 3.0x debt/EBITDA; and (iii)
return to positive free cash flow on a sustainable basis.

Conversely, downward pressure on TMD Friction's ratings could
arise if the company were to fail to (i) maintain EBIT margins of
at least 4%; (ii) return to free cash flow above breakeven level;
and (iii) maintain leverage levels at 4.0x debt/EBITDA or lower.
Potentially higher leverage or weaker profitability could be
tolerated only for a limited period of time.

The principal methodology used in rating TMD Friction Finance
S.A. was the Global Automotive Supplier Industry Methodology
published in January 2009. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

                         About TMD Friction

TMD Friction is a manufacturer of brake pads and linings, based
in Luxembourg and with manufacturing operations in Europe, USA,
China, Mexico, Brazil and South Africa. The company generated
EUR637 million in revenues in 2010. Thereof, 41% were generated
by the Independent Aftermarket Segment ("IAM") which manufactures
branded (approximately 90%) and private-label (around 10%)
replacement brake pads and linings for sale to end customers
through independent dealers and repair shops. In addition, 28% of
TMD Friction's 2010 revenues were generated by the OES segment,
which produces original brake pads and linings for replacement
that are sold through the dealership network of car
manufacturers. Furthermore, some 31% of TMD Friction's 2010
revenues were generated by the OEM segment, which supplies brake
pads and linings for initial car or truck production. In the OEM
segment, TMD Friction actually delivers to Tier-1 suppliers that
manufacture the brake systems. However, the car manufacturer
specifies the brake pad/lining supplier in most cases. In total,
TMD Friction operates 16 manufacturing sites with more than 4,500
employees.

Nisshinbo Holdings Inc. is a Japanese holding company listed on
the Tokyo Stock Exchange. In the fiscal year ended March 2011,
NISH's consolidated sales amounted to JPY325,555 million
(approximately EUR3 billion).


=====================================
S E R B I A   &   M O N T E N E G R O
=====================================


VEKTRA MONTENEGRO: Court Commences Bankruptcy Proceedings
---------------------------------------------------------
SeeNews, citing Podgorica-based RTCG, reports that a commercial
court in Montenegro has launched bankruptcy proceedings against
Vektra Montenegro over to its inability to repay loans.

According SeeNews, RTCG reported on Tuesday that the bankruptcy
petition was filed by Crnogorska Komercijalna Banka and its
parent, Hungary's OTP Bank, demanding the repayment of a
EUR20.9 million (US$27.6 million) loan.

Vektra Montenegro is active in wood processing, tourism,
logistics services, civil aviation and investment.


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


CABLEUROPA SAU: Moody's Assigns B1 Rating to Sec. Notes Due 2018
----------------------------------------------------------------
Moody's Investors Service has assigned a definitive B1 rating to
the US$1,000 million 8.875% senior secured notes due in 2018
issued by Nara Cable Funding Limited, a special purpose vehicle
that has on-lent the funds to Cableuropa S.A.U. (ONO). All other
ratings of the group remain unchanged with a stable outlook.

The notes rank pari passu with ONO's existing senior secured
facilities and senior secured notes.

Ratings Rationale

Moody's definitive rating on this debt obligation is in line with
the provisional rating assigned on January 26, 2012. The bond
issuance was upsized from US$400 million to US$1,000 million due
to strong market demand. Despite the increased size of the
offering, the ratings remain unchanged as the additional proceeds
have been used to repay a same amount of bank credit facilities
that rank pari passu with the new notes.

The B1 rating that Moody's has assigned to the notes is one notch
higher than ONO's B2 CFR, reflecting the impact of the presence
of junior debt in the company's capital structure. This primarily
comprises EUR460 million worth of senior subordinated notes due
in 2019 issued by ONO Finance II Plc.

ONO's debt repayment requirements in 2013 stand at around EUR1.4
billion after this transaction. Although this is still a large
amount, it is well below the EUR3.5 billion in debt repayments
that the company faced 18 months ago. In Moody's view, ONO's
substantial effort in reducing its debt maturity wall will help
the company ease the refinancing of the remaining amounts
outstanding under its senior bank facility.

ONO's B2 CFR reflects the company's position as Spain's largest
cable operator and leading alternative provider of
telecommunications, broadband and internet and pay-TV services
and its resilient performance despite the challenging
macroeconomic environment in the country. The rating also
reflects the large refinancing requirements in 2013, balanced by
the company's efforts to reduce this debt maturity wall.

The stable outlook reflects Moody's expectation that ONO will
deliver on its business plan with no deterioration in its
financial profile. The stable outlook also assumes that ONO will
deal with the refinancing of the remaining bank debt at least 12
months ahead of its maturity in June 2013.

What Could Change The Rating Up/Down

Upward pressure on the rating will hinge on ONO's ability to
successfully refinance on affordable terms the circa EUR1.4
billion of outstanding amounts under its senior credit
facilities, while continuing with its deleveraging efforts, such
that debt/EBITDA (as adjusted by Moody's) trends below 5.0x and
the company generates growing positive free cash flow. However,
Moody's notes that further weakening of the macroeconomic
environment in Spain could constrain upward pressure on the
rating. The uncertain macroeconomic environment limits visibility
as regards (i) the expected evolution of ONO's top line, EBITDA
and free cash flow generation through the company's business
plan; and (ii) the company's ability to secure the required
financing at affordable rates.

Downward rating pressure could arise as a result of (i) a failure
by ONO to deliver operational performance that is in line with
Moody's estimates; (ii) the re-emergence of liquidity concerns,
if ONO fails to proactively address the refinancing of its 2013
debt maturities by mid-2012; or (iii) a material deterioration of
the macroeconomic environment in Spain.

Principal Methodology

The principal methodology used in rating ONO was the Global Cable
Television Industry Methodology published in July 2009. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Headquartered in Madrid, Cableuropa, S.A.U. (ONO) is Spain's
largest cable operator and leading alternative provider of
telecommunications, broadband and internet and pay-TV services.
It is the only cable operator with national coverage. In FY 2010,
ONO reported revenues of around EUR1.5 billion and EBITDA of
EUR725 million.


===========
S W E D E N
===========


SAS AB: S&P Affirms 'B-' Corp. Credit Rating; Outlook Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Sweden-
based airline group SAS AB to negative from stable. "At the same
time, we affirmed our 'B-' corporate credit rating on the group,"
S&P said.

"The outlook revision primarily reflects our view of the weaker
macroeconomic outlook, which, combined with the group's demanding
debt maturity schedule could, in our opinion, lead to reduced
financial flexibility," S&P said.

"We recently lowered our GDP growth forecast for the European
Economic and Monetary Union (EMU or eurozone) to 0% in 2012, from
0.4% previously. Softer macroeconmic conditions are likely to
lead to lower levels of profitability in 2012, as demand for air
travel is highly correlated with economic growth trends and
business confidence," S&P said.

"In our opinion, this lower growth rate will likely depress
demand. Furthermore, jet fuel prices remain high and intense
competition in SAS' home (Scandinavian) market makes it more
difficult to fully pass on these costs to customers," S&P said.

"Our updated base-case credit scenario continues to reflect a
decline in revenues in 2012, based on a combination of lower
demand and increased capacity, leading to lower yields. Our base-
case scenario assumes revenue per passenger kilometer of close to
negative 1%, capacity increases of up to 5%, and yields declining
by as much as 5%," S&P said.

"In an effort to offset the potentially lower revenues, SAS, like
many of its airline peers, has recently accelerated cost-
reduction plans. We note that SAS has a proven history of cutting
its cost base, by over 20% since 2008, largely in response to
low-cost peers operating in the region. As such, we estimate that
non-fuel unit costs could fall by close to 6%. However, these
savings could be easily overwhelmed by high oil prices and a
decline in yields. Our forecast for crude oil has increased to
about US$101 per barrel of West Texas Intermediate crude oil in
2012, compared with our previous forecast of US$96 per barrel in
2012. We estimate that the crack spread, as well as Brent
premium, will be about $30 per barrel. We continue to incorporate
capital spending of about Swedish krona (SEK) 500 million in 2012
into our calculations," S&P said.

"Under our base-case scenario, we anticipate that SAS' credit
metrics will weaken, but still remain relatively strong for the
rating; we estimate Standard & Poor's-adjusted funds from
operations (FFO) to debt to be about 10%. Nevertheless, we
believe that potential adverse developments in the inherently
volatile, cyclical, and competitive airline industry, aggravated
by economic uncertainty, could result in rapid weakening of these
measures, which is captured in our negative outlook," S&P said.

"The 'B-' long-term corporate credit rating on SAS reflects our
view of its 'weak' business risk profile, 'highly leveraged'
financial risk profile, and 'less than adequate' liquidity
position. It also takes into account SAS' stand-alone credit
profile of 'b-', which reflects our opinion that there is a 'low'
likelihood that SAS will benefit from timely and sufficient
extraordinary government support in the event of financial
distress," S&P said.

In accordance with S&P's criteria for government-related
entities, its view of the "low" likelihood of extraordinary
support is based on its assessment of SAS':

-- "Limited" importance for the governments involved. SAS
    operations could easily be handled by a private
    entity.

-- "Limited" link with the governments.

"Although they have been supportive in the past through equity
offerings, we believe that there is a possibility that the
government shareholders may not want to inject equity again if
performance were to weaken. Furthermore, we also believe there is
a possibility that over the longer term, one or more of the
government owners may want to sell their stake in SAS.We assess
SAS' liquidity position as 'less than adequate' under our
criteria, despite liquidity sources to uses likely to exceed 1.2x
over the next 12 months," S&P said.

"Our assessment primarily reflects our view that under our base-
case operating scenario the group could face covenant pressure
under some, but not all, of its credit facilities. A critical
assumption underlying our assessment of any covenant pressure is
that SAS would be able to remedy the situation in a timely
manner. We believe that SAS has a well-established, solid
relationship with its banks, as evidenced when, during the last
economic downturn in 2009, it was able to negotiate amendments to
its credit facilities," S&P said.

As of Dec. 31, 2011, S&P estimates sources of liquidity over the
next 12 months to be:

* Cash balances of SEK3.8 billion;

* Availability on committed revolving credit facilities expiring
   beyond 12 months of about SEK5.1 billion. In line with its
   criteria, S&P excludes credit facilities expiring within a 12-
   month period.

* Internally generated unadjusted FFO, which the agency
   anticipates will be about SEK200 million under its base-case
   operating forecast.

S&P estimates SAS' major uses of liquidity over the 12 months to
December 2012 to be:

* Debt maturities and principal payments of about
   SEK2.3 billion;

* Working capital outflows of about SEK1 billion at the seasonal
   low point of the year. However, S&P estimates total working
   capital outflows to be less than that on an annual basis; and

* Capital spending of about SEK500 million.  Although sources to
   uses over this 12-month period are likely to exceed 1.2x, S&P
   notes that SAS faces substantial debt maturities over an 18-
   month period.

"We estimate that debt maturities and amortization payments, as
well as the expiration of committed credit facilities, could
exceed SEK5 billion in this period. The difficult operating
environment, in our view, may weigh on the refinancing process,"
S&P said.

"The negative outlook reflects our view that the weaker trading
environment, combined with the group's substantial financing
needs over the next 12-18 months could erode its financial
flexibility," S&P said.

"We could lower the rating if SAS' liquidity position weakens
such that the ratio of liquidity sources to uses is less than
1.2x. Due to the anticipated weaker earnings, SAS could face
covenant pressure in 2012, in our view. If it does, we believe
that the company would take action to remedy the situation in a
timely manner. However, failure to do so could result in us
lowering the rating," S&P said.

"We could revise the outlook to stable if liquidity remains at or
above current levels, if the company regains an adequate cushion
under is financial covenants, and if we see an improvement in
macroeconomic conditions, combined with improving operating
performance in terms of demand and yields," S&P said.


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


AFREN PLC: S&P Assigns 'B' Rating to Seven-Year Sr. Sec. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' issue rating
to the proposed issuance of seven-year senior secured notes by
U.K.-based oil exploration and production company Afren PLC
(B/Stable/--). "The issue rating is in line with our 'B' long-
term corporate credit rating on Afren and our 'B' issue rating on
Afren's existing US$500 million senior secured bond," S&P said.

"The issue rating on the proposed notes is subject to both the
successful issuance and our satisfactory review of the final
documentation," S&P said.

"We understand that the company will use the proceeds of the
proposed notes to refinance its existing US$200 million
acquisition facility, of which US$100 million is drawn and US$100
million is earmarked for the final payment of last year's US$588
million acquisition of assets in Kurdistan," S&P said.

The issue rating reflects these factors:

* The proposed notes are secured.

* S&P's base-case assumption for the secured notes is that the
   guarantees and intercompany loans from Afren's material
   operating companies are effective and enforceable.

* The proposed notes rank pari passu with the existing
   $500 million senior secured bond.

* The proposed notes benefit from first-lien security over the
   Okoro oil field and second-lien security over the core Ebok
   oil field, both located off the Nigerian coast.

* S&P believes that contractual and structural priority
   liabilities, including operating companies' debt and trade
   payables, are limited.

"The Standard & Poor's-adjusted ratio of priority liabilities to
assets was about 15% as of Dec. 31, 2011, using pro forma figures
for the proposed issuance. However, the proposed notes are
subordinate to the reserve-based bank line that is secured on
cash flows and reserves of the Ebok oil field (the Ebok bank
line), of which US$218 million was outstanding at year-end 2011.
Both the documentation of the proposed notes and that of the
existing bond limit secured priority debt (such as the Ebok bank
line) at the greater of US$150 million or 20% of total adjusted
consolidated net tangible assets. In addition, priority debt, in
the form of the Ebok bank line, represented less than 1x of 2011
EBITDA," S&P said.

"We assess Afren's business risk profile as 'vulnerable.' We base
our assessment on the high country risk associated with Afren's
operations in the Federal Republic of Nigeria (B+/Positive/B);
Afren's production concentration in a few oil fields; its modest
share of proven reserves that are in production; and its
relatively small production volumes. Risks related to the oil
industry include volatile oil prices, a declining asset base as
resources are exploited, and heavy capital intensity," S&P said.

"Positive rating factors include Afren's good after-tax
profitability, supported by our assumption that any new
legislation in Nigeria would not change this position. Afren's
focus on oil, instead of gas, and its midsize resource base are
further strengths. We also believe that oil prices will remain
high in 2012, with Brent crude at $90 per barrel in our baseline
scenario," S&P said.

"We assess Afren's financial risk profile as 'aggressive' due to
its active and principally net-debt-funded approach to
acquisitions, continued large capital spending needs to develop
reserves, and high dependence on cash flows from the Ebok oil
field. On the positive side, we forecast that Afren's liquidity
should remain 'adequate' under our criteria and that its total
financial debt will decline from the peak we forecast at year-end
2011," S&P said.

Ratings List

New Rating

Afren PLC
Senior Secured Debt                      B


BLUE PRINTING: In Administration, Closes Operations
---------------------------------------------------
PrintWeek reports that Blue Printing Group went into
administration, having closed its doors at the beginning of the
month.

Tony Murphy and Paul Boyle of insolvency practitioner Harrisons
were appointed on Feb. 21.

The appointment covers the company's Harlow headquarters, as well
as the Mitcham facility it acquired from Aldridge Print Group in
June last year, employing around 160 staff that had their
employment terminated in early February, according to PrintWeek.

However, the report notes, the former Mayhew McCrimmon web offset
plant in Shoeburyness, which Blue Printing acquired out of
administration in 2009, is not in administration and continues to
trade.

Mr. Murphy told PrintWeek in an interview that the plant was
owned by Mitchell Paper, which trades as Essex Web Offset (EWO).
Blue managing director Alan Mitchell is a director at both
companies.

"This is a close down, we are not looking to sell the business .
. . .  It is disappointing that a company of this size has gone
over.  It appears they were dragged into a dispute with a
previous owner of a business they bought.  But the main reason
the company seems to have closed is cashflow . . . .  When you
expand turnover by GBP5 million, like they did, you need to spend
GBP4 million and that sucks cash into work in progress and a
company can easily fall victim by expanding very quickly - people
often forget that," the report quoted Mr. Murphy as saying.


EUROSAIL 2006-3NC: S&P Lifts Ratings on Three Note Classes to CCC
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered and kept on
CreditWatch negative its credit ratings on Eurosail 2006-3NC
PLC's class A3a and A3c notes. "At the same time, we have
affirmed and removed from CreditWatch negative our ratings on the
class B1a, C1a, and C1c notes. We have also raised our ratings on
the class D1a, D1c, E1c, ETc, and FTc notes," S&P said.

"On Dec. 11, 2011, we placed on CreditWatch negative our ratings
on the class A, B, and C notes, following the implementation of
our recently updated U.K. residential mortgage-backed securities
(RMBS) criteria," S&P said.

"The rating actions follow our credit and cash flow analysis of
the most recent transaction information that we have received,
applying our recently updated U.K RMBS criteria, our 2010
counterparty criteria," S&P said.

"Our analysis indicates that the transaction's performance has
improved since we previously reviewed it in July 2010," S&P said.

Since then:

* Due to the deleveraging of the transaction, credit enhancement
   levels have increased for all classes of notes;

* The reserve fund has been replenished on the three most recent
   payment dates, and is currently at 81% of its target level;
   and

* Arrears, although high, have remained stable (since mid-2009).

"We do not consider the currency swap agreement for this
transaction to be in line with our 2010 counterparty criteria.
Rather, the swap counterparty's swap agreement reflects
replacement language in line with our previous counterparty
criteria. Therefore, under our criteria, the highest potential
rating on the notes in these transactions is equal to the issuer
credit rating (ICR) on the swap provider plus one notch," S&P
said.

"In light of this, on May 20, 2011, we lowered to 'AA- (sf)' our
rating on the class A3a and A3c notes, to reflect our then-
current rating on Barclays Bank PLC (AA-/Negative/A-1+) as swap
counterparty," S&P said.

"On Nov. 29, 2011, we lowered to 'A+' from 'AA-' our long-term
ICR on Barclays Bank.  We have lowered to 'AA- (sf)' from 'AA
(sf)' our ratings on the class A3a and A3c notes, to reflect our
downgrade of Barclays Bank," S&P said.

"We have kept on CreditWatch negative our ratings on the class
A3a and A3c notes, for counterparty reasons. We intend to resolve
this CreditWatch placement once we have received confirmation
that the counterparty is posting collateral," S&P said.

"We have affirmed and removed from CreditWatch negative our 'BBB
(sf)', 'BB (sf)', and 'BB (sf)' ratings on the class B1a, C1a,
and C1c notes because they remain commensurate with the levels
achieved in our cash flow analysis," S&P said.

"Based on our credit and cash flow analysis, we have raised and
removed from CreditWatch negative to 'B- (sf)' from 'CCC- (sf)'
our ratings on the class D1a and D1c notes because our analysis
indicates that credit enhancement levels for these notes have
increased to levels that are commensurate with our updated
ratings," S&P said.

"We have also raised to 'CCC (sf)' from 'CCC- (sf)' our ratings
on the class E1c, ETc, and FTc because, in our opinion, these
notes have become less likely to default in the near term, given
the improvement in transaction performance since our previous
review," S&P said.

"We also consider credit stability in our analysis, to determine
whether or not an issuer or security has a high likelihood of
experiencing adverse changes in the credit quality of its pool
when moderate stresses are applied. However, the scenarios that
we have considered under moderate stress conditions did not
result in the ratings deteriorating below the maximum projected
deterioration that we would associate with each relevant rating
level, as outlined in our credit stability criteria," S&P said.

"We expect severe arrears to remain at their current levels, as
there are a number of downside risks for nonconforming borrowers.
These include inflation, weak economic growth, high unemployment,
and fiscal tightening. On the positive side, we expect interest
rates to remain low for the foreseeable future," S&P said.

Eurosail-UK 2006-3NC is a U.K. nonconforming RMBS transaction
backed by first- and second-ranking mortgage loans (in England
and Wales) and standard securities (in Scotland). It closed in
November 2006 and securitizes mortgages originated by Southern
Pacific Mortgage Ltd., and Southern Pacific Personal Loans Ltd.

            Standard & Poor's 17g-7 Disclosure Report

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:

   http://standardandpoorsdisclosure-17g7.com/1111441.pdf

Ratings List

Class                   Rating
                To                 From

Eurosail 2006-3NC PLC
EUR227.85 Million, GBP269.913 Million, and US$205 Million
Mortgage-Backed Floating-Rate Notes,
an Overissuance Mortgage-Backed Floating-Rate Notes, and
Mortgage-Backed Deferrable-Interest Notes

Ratings Lowered and Kept on CreditWatch Negative

A3a       AA- (sf)/Watch Neg       AA (sf)/Watch Neg
A3c       AA- (sf)/Watch Neg       AA (sf)/Watch Neg

Ratings Affirmed and Removed From CreditWatch Negative

B1a       BBB (sf)                 BBB (sf)/Watch Neg
C1a       BB (sf)                  BB (sf)/Watch Neg
C1c       BB (sf)                  BB (sf)/Watch Neg

Ratings Raised

D1a       B- (sf)                  CCC- (sf)
D1c       B- (sf)                  CCC- (sf)
E1c       CCC (sf)                 CCC- (sf)
ETc       CCC (sf)                 CCC- (sf)
FTc       CCC (sf)                 CCC- (sf)


MANSARD 2007-2: S&P Lowers Rating on Class B1A Notes to 'B(sf)'
---------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on all classes of notes in Mansard Mortgages 2007-2 PLC.

Specifically, S&P has:

- lowered and removed from CreditWatch negative its ratings on
   the class M1a, M2a, and B1a notes; and

- affirmed its ratings on the class A1a, A2a, and B2a notes,
   and removed from CreditWatch negative its ratings on the class
   A1a and A2a notes.

"On Dec. 12, 2011, we placed on CreditWatch negative our ratings
on Mansard Mortgages 2007-2's class A1a, A2a, M1a, M2a, and B1a
notes. These ratings actions followed the implementation of our
recently updated U.K. residential mortgage-backed securities
(RMBS) criteria," S&P said.

"The rating actions follow our credit and cash flow analysis of
the most recent transaction information that we have received, in
December 2011. Our analysis reflects our updated U.K. RMBS
criteria, and other criteria for transactions of this type," S&P
said.

"We have witnessed an increase in negative movements in credit
numbers, which has affected the rating levels achieved in our
cash flow analysis. We consider that the transaction is
particularly susceptible to scenarios of high prepayment, and
defaults being pushed into the future," S&P said.

Levels of total and severe delinquencies have trended downward
since mid-2009, albeit at a soft decline.

Toward the end of 2008 and through 2009, the issuer drew on the
liquidity facility, which covers interest shortfalls, before any
draws on the reserve fund. The issuer also used the reserve fund
to cover principal losses recorded on the class B2a principal
deficiency ledger. Both the reserve and liquidity facility have
now been topped up to their required levels.

A low constant prepayment rate environment has meant the notes
have not deleveraged to a large extent, with the level of credit
enhancement available to the notes increasing by only about 5%.
The transaction did report excess spread on the December 2011
interest payment date; however, this is the first time this has
happened since the transaction closed in December 2007, and the
excess spread is low at 13 basis points.

Mansard 2007-2 is an RMBS transaction, backed by nonconforming
U.K. residential mortgages originated by Southern Rooftop
Mortgages Ltd.

            Standard & Poor's 17g-7 Disclosure Report

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:

   http://standardandpoorsdisclosure-17g7.com/1111441.pdf

Ratings List

Class            Rating
           To               From

Mansard Mortgages 2007-2 PLC
GBP550 Million Mortgage-Backed Floating-Rate Notes

Ratings Affirmed and Removed From CreditWatch Negative

A1a        AA- (sf)         AA- (sf)/Watch Neg
A2a        AA- (sf)         AA-(sf)/Watch Neg

Rating Affirmed

B2a        B- (sf)

Ratings Lowered and Removed From CreditWatch Negative

M1a        BBB (sf)         A- (sf)/Watch Neg
M2a        BB (sf)          BBB- (sf)/Watch Neg
B1a        B (sf)           BB- (sf)/Watch Neg


NOBLE JEWELLERY: Goes Into Liquidation; 13 Workers Lose Jobs
------------------------------------------------------------
MEN Media reports that Noble Jewellery has gone into liquidation,
with the loss of 13 jobs.

Noble Jewellery Founder and managing director Stuart Noble is
retiring following the company's closure.

According to the report, property consultancy Sanderson
Weatherall is selling the assets of the business, which traded as
Noble Jewellery and Court Jewellers.

The sale will take place from Thursday, March 1, at its former
premises on Bridge Street, the report notes.

Neil Simpson, a partner at the Manchester office of Sanderson
Weatherall, said its demise was due to declining trade because of
the poor economic climate, MEN Media reports.

Noble Jewellery is a family-owned jewellery business with two
shops in Warrington.


PORTSMOUTH FOOTBALL: Balram Chainrai May Lose GBP17 Million Stake
-----------------------------------------------------------------
BBC Sport reports that a leading insolvency expert believes
Balram Chainrai may never get back the GBP17 million that he is
owed by Portsmouth Football Club.

BBC Sport says the Hong-Kong businessman's hold over the club has
proved to be a major obstacle for potential new owners. That
security could be devalued by the courts if administrator Trevor
Birch asks for a ruling on it's true worth, the report notes.

"The administrator can force a sale against Mr. Chainrai's wishes
if he can prove to the court what the assets are worth," Carl
Faulds told BBC South.

In October 2010, the report relates, Mr. Chainrai became a self-
confessed reluctant owner of Pompey -- he had loaned the club
around GBP17 million the year before -- and taken Fratton Park as
security.

Protecting that investment was his priority, but South Today
asked him at the time if he was the right owner, the report
relays.

"Me, the right owner? No. But I know the right owner is out there
and we're going to find him," Mr. Chainrai was quoted by BBC
Sport as saying.

He did eventually find new owners -- Convers Sports Initiatives
-- who agreed a deal to buy the club in the summer of 2011.
Their main financial backer was Russian Vladimir Antonov, the
report adds.

As reported in the Troubled Company Reporter-Europe on Jan. 26,
2012, The Financial Times said Portsmouth Football Club has been
issued a winding-up order by Revenue & Customs over an unpaid
GBP1.6 million tax bill.  The move plunges the Championship side
into a fresh survival battle, two years after it became the first
Premier League club to go into administration, according to The
Financial Times.  Portsmouth FC's future fell into uncertainty
when the owner Vladimir Antonov, a Russian businessman with
banking assets, was arrested in November in central London at the
request of Lithuanian authorities investigating fraud and money
Laundering, the FT noted.

                    About Portsmouth Football

Portsmouth Football Club Ltd. -- http://www.portsmouthfc.co.uk/
-- operated Portsmouth FC, a professional soccer team that plays
in the English Premier League.  Established in 1898, the club
boasted two FA Cups, its last in 2008, and two first division
championships.  Portsmouth FC's home ground is at Fratton Park;
the football team is known to supporters as Pompey.  Dubai
businessman Sulaiman Al-Fahim purchased the club from Alexandre
Gaydamak in 2009.  A French businessman of Russian decent,
Gaydamak had controlled Portsmouth Football Club since 2006.


RAVENBLACK DEVELOPMENTS: Bank Puts Firm Into Administration
-----------------------------------------------------------
BBC News reports that Ravenblack Developments has been placed
into administration by Bank of Ireland.

Ravenblack Developments owes several million pounds and it is
unclear how much the bank will be able to recover, according to
BBC News.

BBC News recalls that the company previously owned Gocean Lodge
in Killyleagh but that was placed into receivership by Bank of
Scotland in April 2011.  The report relates that it was there
that the firm had planned to build a 140-berth marina and 335
homes; however that were blocked by planners.

The administrators' report said that the firm traded profitably
until 2007 until the property market downturn "placed significant
working capital pressure on the company," BBC News discloses.

The director of the company, David Hassard, was declared bankrupt
in February 2011, the report says.

BBC News relays that the company's last set of accounts, for
2007, showed it had bank borrowings of GBP6.5 million and owed
more than GBP7 million to other creditors.

Ravenblack Developments is a property firm which owns a 5.75 acre
development site in Derriaghy near Belfast and a 2.2 acre site at
Cumnock in the west of Scotland.


SEWARD (WESSEX): In Administration, Continues Trading
-----------------------------------------------------
motortrader.com reports that Seward (Wessex) has gone into
administration.

Administrators Smith & Williamson confirmed that trading was
continuing at the group's sites whilst it looks for a potential
buyer, according to motortrader.com

"The administrator is pleased to confirm that whilst Seward
(Wessex) Limited is in administration, both Vauxhall Motors and
Chevrolet UK have agreed to allow vehicle sales and servicing to
continue while buyers for one or more parts of the business are
identified," said the administrators in a statement obtained by
the news agency.

Seward Motor Group was founded in 1989 and is rated 182 in the
Motor Trader Top 200 based on an estimated turnover of GBP42.5
million.  At its height, it was a GBP100 million turnover group
with a 400 strong workforce.  The group operates across Dorset,
Wiltshire and West Sussex and represents Vauxhall and Chevrolet.


===============
X X X X X X X X
===============


* NordLB Expects Shipping Foreclosures, Failures to Rise in 2012
----------------------------------------------------------------
Niklas Magnusson at Bloomberg News reports that Norddeutsche
Landesbank Girozentrale said it expects the number of shipping
foreclosures and bankruptcies will increase further this year
because of the crisis in the industry.

According to Bloomberg, Klaus Stoltenberg, global head of ship
and aircraft finance at NordLB, said at the German Ship Finance
Forum in Hamburg on Thursday that there is a loss of knowhow at
European shipping banks and a "drain on human resources capital"
as experienced people leave the industry because they are
"exhausted" from a crisis that has affected the industry for
three years.


* EUROPE: Moody's Reviews Ratings of CEE CIS Bank Subsidiaries
--------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
debt and deposit ratings of 21 bank subsidiaries located in
Central and Eastern Europe (CEE) and Commonwealth of Independent
States (CIS), reflecting concerns regarding weakening capacity
and/or willingness of parent banks to provide support to these
subsidiaries.

At the same time, Moody's has placed on review for downgrade the
standalone credit assessments of 7 of these bank subsidiaries,
reflecting the potential adverse consequences from weakening
creditworthiness at the parent level on the subsidiaries'
financial strength, given the close linkages between them. Such
linkages include the risk that subsidiaries may face pressure to
upstream capital to their parents or to take more risks in order
to increase profits.

The announcement follows the placement on review for downgrade of
the affected subsidiaries' parent groups, specifically 11
European banking groups and one US group. These actions are
discussed further in the press releases "Moody's Reviews Ratings
for European Banks" and "Moody's Reviews Ratings for Banks and
Securities Firms with Global Capital Markets Operations", both
dated February 15, 2012, on moodys.com.

The affected subsidiaries are listed below (in alphabetical order
of their parent groups):

  - Bank Millennium (subsidiary of Banco Comercial Portugues)

  - Bank Handlowy w Warszawie S.A. (subsidiary of Citigoup)

  - Forum Bank (subsidiary of Commerzbank)

  - Banca Comerciala Romana, Ceska Sporitelna and Erste Bank
    Hungary (subsidiaries of Erste Group Bank)

  - ING Bank Eurasia and ING Bank Slaski (subsidiaries of ING
    Bank)

  - Banka Intesa (Russia) and Vseobecna uverova banka
    (subsidiaries of Intesa Sanpaolo)

  - Ceskoslovenska Obchodni Banka (Czech Republic) and
    Ceskoslovenska Obchodna Banka (Slovakia) (subsidiaries of KBC
    Bank)

  - Natixis Bank (ZAO) (subsidiary of Natixis)

  - Bank Gospodarki Zywnosciowej (subsidiary of Rabobank)

  - Raiffeisenbank (Bulgaria) EAD, Raiffeisen Bank SA, ZAO
    Raiffeisenbank, Raiffeisen Bank Aval, Raiffeisen Leasing Aval
    and Tatra Banka (subsidiaries of Raiffeisen Bank
    International)

  - Komercni Banka (subsidiary of Soci‚t‚ G‚n‚rale)

The bank ratings affected by today's announcement are listed at
the end of this press release.

Ratings Rationale

Moody's bank credit analysis takes into account assumptions about
the capacity and willingness of parent banks to support their
subsidiaries if required. Under Moody's joint-default analysis
methodology, such support assumptions can lead to a subsidiary's
debt and deposit ratings being positioned above its standalone
credit assessment. Weakening financial strength of parent groups
can reduce the benefit from parental support, and exert downward
rating pressure on a subsidiary's debt and deposit ratings.
Furthermore, Moody's also has increasing concerns regarding the
willingness of European parent banking groups to extend support
in the current environment.

FOCUS OF THE REVIEW -- DEBT AND DEPOSIT RATINGS

In conjunction with the conclusion of the reviews of the parent
group ratings, the reviews for downgrade of the subsidiaries'
deposit and debt ratings will focus on two key factors:

(1) WEAKENING OF CAPACITY OF PARENT BANKS TO PROVIDE SUPPORT

The operating environment for banking groups in Europe has
deteriorated significantly in recent months, driven by (i) the
adverse and prolonged impact of the euro area crisis, which makes
the operating environment very difficult for European banks; (ii)
the deteriorating creditworthiness of euro area sovereigns; and
(iii) longer-term, the substantial challenges faced by banks and
securities firms with significant capital market activities.
These drivers are triggering deterioration in the credit profiles
of parent banks, thereby affecting their financial capacity,
including capital and funding resources, to support their
subsidiaries.

Accordingly, the reviews will assess the effects of any reduction
in the capacity of parent groups to support their subsidiaries,
as captured by any lowering of parent groups' standalone credit
assessments.

In the case of Bank Handlowy, a subsidiary of the US' Citigroup,
Moody's concern about the parent's credit strength primarily
reflects the third aforementioned driver, namely the difficulties
for financial institutions with global capital markets
activities. These firms face more fragile funding conditions,
wider credit spreads and increased regulatory burdens. These
adverse credit drivers, together with inherent vulnerabilities
such as confidence-sensitivity, interconnectedness, and opacity
of risk, have diminished the longer term profitability and growth
prospects of firms with global capital market operations, in
Moody's opinion.

(2) POTENTIAL WEAKENING IN WILLINGESS OF PARENT BANKS TO PROVIDE
    SUPPORT

The above-listed adverse trends, as well as stricter regulatory
requirements are driving banks to strengthen their capital
resources, including via deleveraging. Such efforts can lead
parent banks to refocus on their core domestic franchises and
reduce their willingness to deploy scarce capital and funding
resources to support foreign subsidiaries.

Accordingly, the review will also re-assess any changes in the
willingness or likelihood that European parental groups will
provide support if needed. This part of the review will consider,
on a bank-by-bank basis (i) the increasing pressure on parent
groups to refocus on their core domestic franchises; (ii) any
changes to the medium-term strategic fit of subsidiaries; and
(iii) the potential for a gradual withdrawal from the markets in
which the respective subsidiaries operate, given the Europe-wide
scarcity of capital resources.

The concerns regarding potential weakening in willingness of
European parent banks to provide support are described in more
detail in Moody's Comment, "CEE and CIS Banks: Pressure on Euro
Area Banks Could Lead to Diminishing Parental Support for Local
Subsidiaries", published on December 16, 2012.

The reviews of subsidiaries' deposit and debt ratings will assess
the effects of these factors on each affected subsidiary, taking
into consideration its positioning and long-term strategic value
within the parent group and the financial standing of each
parent. The reviews of the subsidiaries will be concluded
following the conclusion of the reviews on their respective
parent groups.

RATINGS RATIONALE -- STANDALONE CREDIT ASSESSMENTS

In addition to the reviews on deposit and debt ratings for all 21
subsidiaries, the standalone credit assessments of 7 of these
have also been placed on review for downgrade, reflecting the
potential adverse consequences from weakening creditworthiness at
the parent level on the subsidiaries' financial strength. The
affected 7 banks are: Banca Comerciala Romana, Bank Millennium,
Ceska Sporitelna, Ceskoslovenska Obchodni Banka (Czech Republic),
Komercni Banka, Raiffeisen Bank SA and Tatra Banka.

FOCUS OF THE REVIEW -- STANDALONE CREDIT ASSESSMENTS

For these banks, the reviews will also assess increasing concerns
regarding how pressures on parent groups may affect subsidiaries'
standalone credit profiles through their close financial,
branding and managerial linkages. Such linkages further include
risks that subsidiaries may face pressure from their parents to
upstream capital to them or to take more risks to grow profits.
Moody's will assess the positioning of each subsidiary's
standalone credit assessment relative to its parent's standalone
profile, taking into account (i) funding dependence; (ii)
profitability; (iii) exposure to the parent; (iv) regulatory
barriers to control the distribution of capital resources from
the subsidiary to the parent and (v) idiosyncratic challenges in
local markets.

WHAT COULD MOVE THE RATINGS UP/DOWN

For the reviews of subsidiaries' deposit and debt ratings, the
most important drivers are the weakening capacity of parent banks
to provide support to subsidiaries and the risk of declining
willingness to offer such support. For the reviews of
subsidiaries' standalone credit assessments, the most important
drivers are how declining financial strength of the parent groups
may affect subsidiaries' standalone credit profiles via close
financial, branding and managerial linkages, as well as the risk
of pressure on subsidiaries to upstream capital to their parents
or to take more risks in order to increase profits.

Moody's believes there is little likelihood of any upward rating
momentum for the subsidiaries covered by today's announcement,
unless there was a material, sustained improvement in the
European operating environment.

The following ratings are affected:

Bank Millennium (subsidiary of Banco Comercial Portugues)

- Long-term local and foreign currency deposit rating of Baa3,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-3, placed on review for downgrade

- Standalone BFSR (bank financial strength rating) of D (mapping
   to Ba2), placed on review for downgrade from stable outlook

Bank Handlowy w Warszawie S.A. (subsidiary of Citigoup)

- Long-term local and foreign currency deposit rating of Baa1,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-2, placed on review for downgrade

- Standalone BFSR of D+ (mapping to Baa3), negative outlook,
   unchanged

Forum Bank (subsidiary of Commerzbank AG):

- Long-term local currency deposit rating of B1, placed on
   review for downgrade from negative outlook

- Long-term foreign currency deposit rating of B3, negative
   outlook, unchanged

- Long-term national scale bank deposits rating of Aa3.ua,
   placed on review for downgrade

- Standalone BFSR of E+ (mapping to B3), negative outlook,
   unchanged

Banca Comerciala Romana (subsidiary of Erste Group Bank):

- Long-term local currency deposit rating of Baa2, and foreign
   currency deposit rating of Baa3, placed on review for
   downgrade from stable outlook

- Short-term local currency deposit rating of Prime-2, and
   foreign currency deposit rating of Prime-3, placed on review
   for downgrade

- Standalone BFSR of D (mapping to Ba2), placed on review for
   downgrade from stable outlook

Ceska Sporitelna (subsidiary of Erste Group Bank):

- Long-term local and foreign currency deposit rating of A1,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-1, placed on review for downgrade

- Standalone BFSR of C (mapping to A3), placed on review for
   downgrade from negative outlook

Erste Bank Hungary (subsidiary of Erste Group Bank):

- Long-term local and foreign currency deposit ratings of Ba3,
   placed on review for downgrade from negative outlook

- Standalone BFSR of E+ (mapping to B2), negative outlook,
   unchanged

ING Bank Eurasia (subsidiary of ING Bank):

- Long-term local and foreign currency deposit rating of Baa1,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-2, placed on review for downgrade

- Senior unsecured rating of Baa1, placed on review for
   downgrade from negative outlook

- Standalone BFSR of D (mapping to Ba2), stable outlook,
   unchanged

ING Bank Slaski (subsidiary of ING Bank):

- Long-term local and foreign currency deposit rating of A2,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-1, placed on review for downgrade

- Standalone BFSR of D+ (mapping to Baa3), stable outlook,
   unchanged

Banca Intesa (Russia) (subsidiary of Intesa Sanpaolo):

- Long-term- local and foreign currency deposit ratings of Baa3,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-3, placed on review for downgrade

- Standalone BFSR of D- (mapping to Ba3), stable outlook,
   unchanged

Vseobecna uverova banka (subsidiary of Intesa Sanpaolo):

- Long-term local and foreign currency deposit rating of A2,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-1, placed on review for downgrade

- Standalone BFSR of C- (mapping to Baa2), stable outlook,
   unchanged

Ceskoslovenska Obchodni Banka (Czech Republic) (subsidiary of KBC
Bank)

- Long-term local and foreign currency deposit rating of A1,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-1, placed on review for downgrade

- Standalone BFSR of C (mapping to A3), placed on review for
   downgrade from negative outlook

Ceskoslovenska Obchodna Banka (Slovakia) (subsidiary of KBC Bank)

- Long-term local and foreign currency deposit rating of Baa2,
   placed on review for downgrade from stable outlook

- Short-term local and foreign currency deposit rating of
   Prime-2, placed on review for downgrade

- Standalone BFSR of D (mapping to Ba2), stable outlook,
   unchanged

Natixis Bank (ZAO) (subsidiary of Natixis):

- Long-term local and foreign currency deposit rating of Ba2,
   placed on review for downgrade from stable outlook

- Standalone BFSR of E+ (mapping to B1), stable outlook,
   unchanged

Bank Gospodarki Zywnosciowej (subsidiaries of Rabobank):

- Long-term local and foreign currency deposit rating of Baa1,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-2, placed on review for downgrade

- Standalone BFSR of D (mapping to Ba2), stable outlook,
   unchanged

Raiffeisenbank (Bulgaria) EAD (subsidiary of Raiffeisen Bank
International AG):

- Longterm local and foreign currency deposit rating of Baa3,
   placed on review for downgrade from stable outlook

- Short-term local and foreign currency deposit rating of
   Prime-3, placed on review for downgrade

- Standalone BFSR of D+ (mapping to Ba1), negative outlook,
   unchanged

Raiffeisen Bank SA (subsidiary of Raiffeisen Bank International
AG):

- Longterm local currency deposit rating of Baa3, placed on
   review for downgrade from positive outlook

- Longterm foreign currency deposit rating of Baa3, placed on
   review for downgrade from stable outlook

- Short-term local and foreign currency deposit rating of
   Prime-3, placed on review for downgrade

- Standalone BFSR of D (mapping to Ba2), placed on review for
   downgrade from stable outlook

ZAO Raiffeisenbank (subsidiary of Raiffeisen Bank International
AG):

- Longterm local and foreign currency deposit rating of Baa3,
   placed on review for downgrade from positive outlook

- Local currency senior unsecured debt rating of Baa3, placed on
   review for downgrade from positive outlook

- Foreign currency senior unsecured debt rating of (P)Baa3,
   placed on review for downgrade from positive outlook

- Short-term local and foreign currency deposit rating of
   Prime-3, placed on review for downgrade

- Foreign currency senior unsecured debt rating of (P)Prime-3,
   placed on review for downgrade

- Foreign currency subordinated debt rating of (P)Ba1, placed on
   review for downgrade from positive outlook

- Standalone BFSR of D+ (mapping to Ba1), stable outlook,
   unchanged

Raiffeisen Bank Aval (subsidiary of Raiffeisen Bank International
AG):

- Longterm local currency deposit ratings of Ba1, placed on
   review for downgrade from stable outlook

- Local currency senior unsecured rating of Ba1, placed on
   review for downgrade from stable outlook

- Longterm foreign currency deposit ratings of B3, negative
   outlook, unchanged

- Longterm deposit national scale rating of Aa1.ua, unchanged

- Senior unsecured national scale rating of Aa1.ua, unchanged

- Standalone BFSR of D- (mapping to Ba3), stable outlook,
   unchanged

Raiffeisen Leasing Aval (subsidiary of Raiffeisen Bank
International AG):

- Longterm national scale issuer rating of Aa1.ua, placed on
   review for downgrade

- Longterm national scale senior unsecured rating of Aa1.ua,
   placed on review for downgrade

Tatra Banka (subsidiary of Raiffeisen Bank International AG):

- Longterm local and foreign currency deposit rating of A2,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-1, placed on review for downgrade

- Standalone BFSR of C- (mapping to Baa2), placed on review for
   downgrade from negative outlook

Komercni Banka (subsidiary of Societe Generale):

- Longterm local and foreign currency deposit rating of A2,
   placed on review for downgrade from negative outlook

- Short-term local and foreign currency deposit rating of
   Prime-1, placed on review for downgrade

- Standalone BFSR of C (mapping to A3), placed on review for
   downgrade from negative outlook

The principal methodologies used in rating Bank Millennium, Bank
Handlowy w Warszawie S.A, Forum Bank, Banca Comerciala Romana,
Ceska Sporitelna, Erste Bank Hungary, ING Bank Eurasia, ING Bank
Slaski, Banca Intesa (Russia), Vseobecna uverova banka,
Ceskoslovenska Obchodni Banka (Czech Republic), Ceskoslovenska
Obchodna Banka (Slovakia), Natixis Bank (ZAO), Bank Gospodarki
Zywnosciowej, Raiffeisenbank (Bulgaria) EAD, Raiffeisen Bank SA,
Raiffeisen Bank Aval and Raiffeisen Leasing Aval, Tatra Banka and
Komercni Bank were Bank Financial Strength Ratings: Global
Methodology published in February 2007 and Incorporation of
Joint-Default Analysis into Moody's Bank Ratings: A Refined
Methodology published in March 2007.

The principal methodologies used in rating ZAO Raiffeisenbank
were Bank Financial Strength Ratings: Global Methodology
published in February 2007 and Incorporation of Joint-Default
Analysis into Moody's Bank Ratings: A Refined Methodology
published in March 2007, and Moody's Guidelines for Rating Bank
Hybrid Securities and Subordinated Debt published in November
2009.

The ratings of Forum Bank, Raiffeisen Bank Aval and Raiffeisen
Leasing Aval are Moody's National Scale Ratings (NSRs) which are
intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".mx" for Mexico. For
further information on Moody's approach to national scale
ratings, please refer to Moody's Rating Implementation Guidance
published in March 2011 entitled "Mapping Moody's National Scale
Ratings to Global Scale Ratings".


* BOOK REVIEW: Performance Evaluation of Hedge Funds
----------------------------------------------------
Edited by Greg N. Gregoriou, Fabrice Rouah, and Komlan Sedzro
Publisher: Beard Books
Hardcover: 203 pages
Listprice: $59.95
Review by Henry Berry

Hedge funds can be traced back to 1949 when Alfred Winslow Jones
formed the first one to "hedge" his investments in the stock
market by betting that some stocks would go up and others down.
However, it has only been within the past decade that hedge funds
have exploded in growth.  The rise of global markets and the
uncertainties that have arisen from the valuation of different
currencies have given a boost to hedge funds.  In 1998, there
were approximately 3,500 hedge funds, managing capital of about
$150 billion.  By mid-2006, 9,000 hedge funds were managing $1.2
trillion in assets.

Despite their growing prominence in the investment community,
hedge funds are only vaguely understood by most people.
Performance Evaluation of Hedge Funds addresses this shortcoming.
The book describes the structure, workings, purpose, and goals of
hedge funds.  While hedge funds are loosely defined as "funds
with no rules," the editors define these funds more usefully as
"privately pooled investments, usually structured as a
partnership between the fund managers and the investors."  The
authors then expand upon this definition by explaining what sorts
of investments hedge funds are, the work of the managers, and the
reasons investors join a hedge fund and what they are looking for
in doing so.

For example, hedge funds are characterized as an "important
avenue for investors opting to diversify their traditional
portfolios and better control risk" -- an apt characterization
considering their tremendous growth over the last decade.  The
qualifications to join a hedge fund generally include a net worth
in excess of $1 million; thus, funds are for high net-worth
individuals and institutional investors such as foundations, life
insurance companies, endowments, and investment banks.  However,
there are many individuals with net worths below $1 million that
take part in hedge funds by pooling funds in financial entities
that are then eligible for a hedge fund.

This book discusses why hedge funds have become "notorious as
speculating vehicles," in part because of highly publicized
incidents, both pro and con.  For example, George Soros made $1
billion in 1992 by betting against the British pound.
Conversely, the hedge fund Long-Term Capital Management (LTCP)
imploded in 1998, with losses totalling $4.6 billion.
Nonetheless, these are the exceptions rather than the rule, and
the editors offer statistics, studies, and other research showing
that the "volatility of hedge funds is closer to that of bonds
than mutual funds or equities."

After clarifying what hedge funds are and are not, the book
explains how to analyze hedge fund performance and select a
successful hedge fund.  It is here that the book has its greatest
utility, and the text is supplemented with graphs, tables, and
formulas.

The analysis makes one thing clear: for some investors, hedge
funds are an investment worth considering.  Most have a
demonstrable record of investment performance and the risk is
low, contrary to common perception.  Investors who have the
necessary capital to invest in a hedge fund or readers who aspire
to join that select club will want to absorb the research,
information, analyses, commentary, and guidance of this unique
book.

Greg N. Gregoriou teaches at U. S. and Canadian universities and
does research for large corporations.  Fabrice Rouah also teaches
at the university level and does financial research.  Komlan
Sedzro is a professor of finance at the University of Quebec and
an advisor to the Montreal Derivatives Exchange.


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland
USA.  Valerie U. Pascual, Marites O. Claro, Rousel Elaine T.
Fernandez, Joy A. Agravante, Ivy B. Magdadaro, Frauline S.
Abangan and Peter A. Chapman, Editors.

Copyright 2012.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 240/629-3300.


                 * * * End of Transmission * * *